Resolution 2014-331
RESOLUTION NO. 2014 —33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY APPROVING MAXIMUM CHARGES FOR
SOLID WASTE RATES AND ESTABLISHING A PROCESS
FOR CONSIDERING AND APPROVING ANNUAL INDEX
RATE ADJUSTMENTS AS DEFINED BY EXHIBIT "J" TO
THE AGREEMENT BETWEEN THE CITY OF GILROY
AND SOUTH VALLEY DISPOSAL AND RECYCLING FOR
SOLID WASTE COLLECTION AND MANAGEMENT
SERVICES
WHEREAS, the City of Gilroy, a municipal corporation and charter city duly organized
and existing under and pursuant to the Constitution and laws of the State of California ( "City "),
-is authorized to enter into contracts and agreements to provide services for the benefit of the City
and to review and approve service rates resulting from said contracts and agreements; and
WHEREAS, the City and South Valley Disposal & Recycling, Inc., ( "Contractor ") are
currently parties to an Agreement Between City of Gilroy and South Valley Disposal &
Recycling, Inc., dated September 2, 1997 (the "Franchise Agreement "), by which City granted to
Contractor the exclusive franchise to collect, transport and dispose of garbage and refuse
-produced within the corporate limits of City; and
WHEREAS, the City acknowledges that South Valley Disposal & Recycling, Inc. now
conducts business as Recology South Valley; and
WHEREAS, the City desires to amend and extend the Franchise Agreement as set forth
in detail -in that certain City Council Staff Report entitled "Solid Waste Disposal Agreement,
Franchise Amendment and Rate Setting Methodology" submitted to the City Council by the City
Administrator (the "Staff Report") for City Council consideration at its meeting of June 16,
2014, the contents of which Staff Report are incorporated herein by this reference; and
WHEREAS, as a component of the City's amendment to the Franchise Agreement,
Recology South Valley will be required to make significant capital investments to convert the
solid waste collection fleet to compressed natural gas fuel; and
WHEREAS, the Franchise Agreement Exhibit "J" describes how service rates shall be
adjusted annually based on indices defined in the Franchise Agreement; and
X047 6083 1°l RESOLUTION NO. 2014 -33
JH104706083
z
WHEREAS, the City is contractually obligated to approve service -rate adjustments that
follow the formulas and methods identified in the Franchise Agreement Exhibit "J" Section B
that are submitted by Recology South Valley; and
WHEREAS, an annual and administrative review of index -based rate adjustments that
does not require a City Council staff report or presentation will conserve City resources and
enhance City Council efficiency; and
WHEREAS, Section 12.23 of the Municipal Code specifies that the City Council shall set
maximum charges for solid waste management services from time to time by resolution; and
WHEREAS, the consideration by City Council of the adoption of this Resolution has
been duly noticed pursuant to applicable laws and has been placed upon the City Council
Meeting Agenda on the date set forth in the Staff Report, or to such date that the City Council
may have continued or deferred consideration of this Resolution, and on such date the City
Council conducted a duly noticed public meeting at which meeting the City Council provided
members of the public an opportunity to comment and be heard and considered any and all
testimony and other evidence provided in connection with the adoption of this Resolution; and
WHEREAS, the activities allowed under this Resolution are exempt from the California
Environmental Quality Act of 1970 ( "CEQA ") per CEQA Guidelines Section 15273; and
WHEREAS, the City Council determines that adoption of this Resolution is in the public
interest.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
Section 1. Recitals. The City Council does hereby find, determine and resolve that all
of the foregoing recitals are true and correct.
Section 2. Policy Direction and Authorization. The City Council does further resolve,
order and/or direct as follows:
a. That the rates attached hereto as Exhibit A, which were approved by the Gilroy City
Council on June 13, 2013, shall remain the maximum charges and rates for solid
waste management and recycling services until July 2, 2015.
b. As specified in the Third Amendment to the Franchise Agreement , a supplemental
rate increase of 3.82% shall be applied on July 1, 2015 and a 3.0% supplemental rate
increase shall be applied on July 1, 2016 to the rates listed in Exhibit A in order to
partially offset the investments required to convert to compressed natural gas fuel.
48274589 -2891 v1 RESOLUTION NO. 2014-33
JH104706083
3
These supplemental increases shall be applied in addition to any other rate
adjustments Contractor is eligible to request under the Franchise Agreement.
c. That all subsequent requests for service rate adjustments submitted by Recology
South Valley, that are solely based on the adjustment indices specified in the
Franchise Agreement, Exhibit "J" Section B , shall be subject to the annual review
and approval of the City Administrator and shall not require City Council review and
approval as specified in the Franchise Agreement Exhibit "J" Section E. All other
requests for rate adjustments based on all other sections of the franchise agreement
shall require City Council review and approval.
Section 3. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 16'' day of June, 2014 by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, BRACCO, LEROE- MUNOZ,
TUCKER, WOODWARD and GAGE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: AULMAN
APPROVED:
ATTEST:
Freels, City Clerk
4827-4589-2891 v1
JH10470604706083 RESOLUTION NO. 2014 -33
RECOLOGY SOUTH VALLEY
CITY OF GILROY
RATES EFFECTIVE JULY 1, 2013
Current Add New
DESCRIPTION Rates 1.45% Rates
1. Residential Customers and Multi - Family Can Customers Oncludin_a Recvclin
1 -Can
28.25
0.41
28.66
2 -Cans
40.53
0.59
41.12
3 -Cans
53.13
0.77
53.90
4 -Cans
67.95
0.99
68.94
Each Additional Can
14.81
0.21
15.02
Extra Can /Bag Tag
5.93
0.09
6.02
Bulky Item Pickup (Plus Disposal Cost)
17.78
0.26
18.04
Toter Subscription Changes
14.81
0.21
15.02
Low Income Senior
1 -Can
23.80
0.35
24.15
2 -Cans
33.83
0.49
34.32
3 -Cans
44.28
0.64
44.92
4 -Cans
54.76
0.79
55.55
Hillside
1 -Can
34.11
0.49
34.60
2 -Cans
48.58
0.70
49.28
3 -Cans
63.42
0.92
64.34
4 -Cans
78.26
1.13
79.39
2. Multi - Family Bin Customer RecyclinQ
Per Unit Charge
2.23
0.03
2.26
For recycling service only
(option to choose Commercial Service)
3. Commercial and Multi - Family Bin Customer (Refuse)
1 -Can
28.25
0.41
28.66
2 -Cans
42.73
0.62
43.35
3 -Cans
57.60
0.84
58.44
4 -Cans
72.41
1.05
73.46
Each Additional Can
16.04
0.23
16.27
4. Commercial Front Loader Service Rates
2 Yard F/L (1x/wk)
189.26
2.74
192.00
2 Yard F/L (2x/wk)
355.30
5.15
360.45
2 Yard F/L (3x/wk)
521.32
7.56
528.88
2 Yard F/L (4x/wk)
687.40
9.97
697.37
2 Yard F/L (5x/wk)
853.42
12.37
865.79
2 Yard F/L (6x/wk)
1019.46
14.78
1,034.24
2 Yard F/L (on call)
123.21
1.79
125.00
3 Yard F/L (lx/wk)
272.73
3.95
276.68
3 Yard F/L (2x/wk)
513.98
7.45
521.43
Copy of FY2013- Rate -Incr Exhibit 6/17/2014 1:45 PM
RECOLOGY SOUTH VALLEY
CITY OF GILROY
RATES EFFECTIVE JULY 1, 2013
Copy of FY2013- Rate -Incr Exhibit 6/17/2014 1:45 PM
Current
Add
New
DESCRIPTION
Rates
1.45%
Rates
3 Yard F/L (3x/wk)
755.18
10.95
766.13
3 Yard F/L (4x/wk)
996.41
14.45
1,010.86
3 Yard F/L (5x/wk)
1237.64
17.95
1,255.59
3 Yard F/L (6x/wk)
1478.85
21.44
1,500.29
3 Yard F/L (on call)
175.66
2.55
178.21
4 Yard F/L (1x/wk)
365.82
5.30
371.12
4 Yard F/L (2x/wk)
692.05
10.03
702.08
4 Yard F/L (3x/wk)
1018.26
14.76
1,033.02
4 Yard F/L (4x/wk)
1344.49
19.50
1,363.99
4 Yard F/L (5x/wk)
1670.73
24.23
1,694.96
4 Yard F/L (6x/wk)
1996.93
28.96
2,025.89
4 Yard F/L (on call)
243.98
3.54
247.52
6 Yard F/L (1x/wk)
532.75
7.72
540.47
6 Yard F/L (2x/wk)
1013.10
14.69
1,027.79
6 Yard F/L (3x/wk)
1493.47
21.66
1,515.13
6 Yard F/L (4x/wk)
1973.83
28.62
2,002.45
6 Yard F/L (5x/wk)
2454.19
35.59
2,489.78
6 Yard F/L (6x/wk)
2934.53
42.55
2,977.08
6 Yard F/L (on call)
334.52
4.85
339.37
Front Loader Special (per cubic yard)
20.35
0.30
20.65
5. Compactor Service
Front Loader (per cubic yard)
43.47
0.63
44.10
3 -yd F/L compactor (lx/wk)
566.18
8.21
574.39
3 -yd F/L compactor (2x/wk)
1131.12
16.40
1,147.52
3 -yd F/L compactor (3x/wk)
1696.05
24.59
1,720.64
6. Debris Box Rates
20 Cubic Yard Debris Box,
460.66
6.68
467.34
Per ton charge (over 3 tons)
88.96
1.29
90.25
40 Cubic Yard Debris Box,
767.67
11.13
778.80
Per ton charge (over 6 tons)
88.96
1.29
90.25
Debris Box Compactors
43.47
0.63
44.10
(per cubic yard of capacity)
20 Cubic Yard Debris Box (recyclable)
285.35
4.14
289.49
40 Cubic Yard Debris Box (recyclable)
504.95
7.32
512.27
7. Additional Street Sweepin4
M -F 8:00am- 5:00pm (Per Hour)
109.33
1.59
110.92
Sat -Sun 8:00am- 5:00pm -Per Hr +4hr Minimum
182.24
2.64
184.88
Copy of FY2013- Rate -Incr Exhibit 6/17/2014 1:45 PM
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2014 -33 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 16th day of June, 2014, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 17th day of June, 2014.
A"K Freels, MMC-
Clerk of the City of Gilroy
(Seal)