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Home My Public Portal About11) 7.G. Consideration of Rate Adjustment from AthensAGENDA ITEM 7.G COMMUNITY DEVELOPMENT DEPARTMENT DATE: June 18, 2013 MEMORANDUM TO: The Honorable City Council FROM: Jose E. Pulido, City Manage Via: Mark Persico, Commun y Development Director By: Bryan Ariizumi, Public Safety Officer SUBJECT: CONSIDERATION OF A RATE ADJUSTMENT REQUEST FOR WASTE SERVICES FROM ATHENS SERVICES, INC. RECOMMENDATION: The City Council is requested to approve the rate adjustment request for waste collection rates made by Athens Services to become effective July 1, 2013. BACKGROUND: 1. On February 18, 2003, the City Council approved an Amended and Restated Agreement with Athens Services, the City's contract waste collector. 2. On May 30, 2012, the City was notified by Athens Services, that they have adjusted the rates for waste services to be effective July 1, 2012. 3. On May 29, 2013, the City was notified by Athens Services, that they have adjusted the rates for waste services to be effective July 1, 2013. ANALYSIS: In accordance with the City's agreement with Athens Services, Athens may submit a request for an annual rate adjustment to the City. Pursuant to Section 8.2 of the agreement, Athens submitted a Rate Adjustment Request on May 29, 2013 (Attachment "A"), and the submittal met the time requirements of Section 8.2. Section 8.2 (Rate Review) of the agreement between the City and Athens Services City Council June 18, 2013 Page 2 of 3 states: "The Contractor may submit an application for rate review not more often than annually. The complete application shall be submitted within ten (10) days after (i) the Contractor receives the annual notice of adjustment in landfill tipping fees from any disposal site presently being used pursuant to this Agreement and (ii) the publication of the increase or decrease in Consumer Price Index (CPI) for the previous 12 -month period (May through April) for all urban consumers in the Los Angeles -Anaheim - Riverside area, non -housing, but in no event later than June 1 for the period starting July 1. The City Council will take action on the request as soon as possible and will complete the approval process by July 1. The application shall show how the rate increase meets the formula set out in Section 8.4." Section 8.4 (Rate Formula) states: "Any rate adjustment pursuant to this Agreement will be calculated as set out in Exhibit "D" attached and incorporated as if fully set forth herein." Athens is requesting a rate adjustment of approximately 0.81 % increase over last year's rate. There are several components in the rate adjustment. Following is a summary of the proposed rate adjustments: 1. Operations component is based on the percentage change in the Consumer Price Index (CPI) from April 2012 to April 2013. The CPI is 0.92% for this period; 2. Rubbish disposal component is based on the change in the gate fee at the Puente Hills Landfill from July 2012 to July 2013. The gate fee is $38.41 per ton and did not increase during this period; 3. Green waste disposal component is based on the change in the green waste gate fee at the Puente Hills Landfill from July 2012 to July 2013. During this period the green waste gate fee increased from $22.95 per ton to $23.97 per ton, an increase of 4.44%; and 4. City fee component consists of a franchise fee and a waste management fee, which is determined by the City. Residential unit customers do not pay a franchise fee, however they do pay a waste management fee of 20 cents per month for barrel service and 2% for bin service. Commercial customers pay a 5% franchise fee and 2% waste management fee for all services. There is no change proposed for the City fee component. Attached are the Rate Adjustments for 2013 (Attachment "B") and 2012 (Attachment City Council June 18, 2013 Page 3 of 3 "C") which outline the proposed rate adjustments for Temple City customers. The new rates would be effective starting July 1, 2013. CONCLUSION: Consistent with the City's agreement with Athens Services, the City Council is requested to approve their rate increase adjustment. The new rates would be effective July 1, 2013. The new single-family rate would increase from $29.75 to $29.99 per month and the rate for a three cubic yard bin would increase from $182.74 to $184.22. FISCAL IMPACT: This item does not have an impact on the new Fiscal Year (FY) 2013-14 City Budget. Street sweeping services would increase by 0.78% from last year's rate. The new rate would increase from $10,060.41 to $10,139.19 per month. An increase in the street sweeping services was anticipated and budgeted accordingly in the FY 2013-14 City Budget. There is no impact to the collection of refuse at City facilities. Under the current agreement with Athens, refuse collection service is provided at no cost to the City. ATTACHMENTS: A. Letter from Athens Services dated May 29, 2013 B. Rate Adjustment Effective July 2013 C. Rate Adjustment Effective July 2012 D. Los Angeles County Sanitation District 2013 Rate Schedule E. Los Angeles County Sanitation District 2012 Rate Schedule May 29, 2013 Jose E. Pulido City Manager City of Temple City 9701 Las Tunas Dr. Temple City, CA 91780 Re: Annual Rate Review Mr. Pulido: Athens Servol ATTACHMENT A vvasre i onecnon+necyunrig< i ransrer.uisposai=sxreet sweeping 14046 Valley Blvd, P.O. Box 60009 City of Industry, CA 91716-0009 Fax (646) 330-4686 (646) 336-3636 RECEIVED JUN 0 3 2013 TEMPLE CITY CITY MANAGER'S OFFICE In accordance with our agreement with the City of Temple City, please accept this letter and enclosed exhibits as Athens Services (Athens) request to adjust rates effective July 1, 2013. The operations component of the rate is based on the percentage change in the Consumer Price Index from April 2012 to April 2013 of 0.92%. The rubbish disposal component is adjusted based on the percentage change in the Puente Hills Landfill (PHL) rubbish gate fee from July 2012 to July 2013 of 0.00%. The green waste disposal component is adjusted based on the percentage change in the PHL green waste gate fee from July 2012 to July 2013 of 4.44%. As you -know, the PHL is scheduled to close October 2013. Athens anticipated this closure and the resulting need for long-term disposal arrangements years ago when we constructed our Material Recovery Facility in the City of Industry, and subsequently acquired American Organics in Victorville. In addition, Athens has entered into an importation contract with the San Bernardino County Landfill System, which creates another long-term benefit for our municipal customers. We are planning a seamless transition for all of our customers when the PHL closes in October 2013, protecting your disposal diversion & waste collection services. In the next few months, we will be presenting to your City these aforementioned impacts to your disposal as well as how this will impact customer rates. Please handle the administrative processing of this annual rate adjustment request to make the rates effective Ady 1, 2013. I can be reached at (626) 855-7230 if you have any questions regarding this rate adjustment request or the closure of PHL, Sincerely, C_ Christian Warner Controller Enclosure Cc: Tracey Hause, Finance Director, City of Temple City Dennis Chiappetta, Executive Vice President, Athens Services Gary Clifford, Chief Operating Officer, Athens Services ATTACHMENT B F r4 rCT�JGi C U c i n ti a P n m •+ w n n N Y _ i x' P b ch .-. h C P [� } O C O fl I b cC m r Z a _ u pp e U w - o r •-• nx Y C C - iS7 I/"yJ I(�] ,Q] N Z m > m Y vw N ^ vyi N Y Ol ^ - fl Di M Fy G F. p - w ¢ i✓ F O Foo ow�W a w - �^ N � �1 ✓� W Y tV Y � N6� ^ N CI t� T rl y� d - Y b W N Y 9 O m ^ 7 f + -� CI n rl ^ �00 n a^q� u X00 w 00 (: U on ZZ r o � rxi� rx�n7 —wm -�n f vmr, H j O �V � m 2 s - — E o, CT' — — — oI I IT I IT ATTACHMENT C IT c = -ZEIT 11 - _ - Z r.-1 TI 1 1 14--, _1 14- __ IT I Z 14 IT IT IT 14 7 IT - n IT M = Tct . n =-nm X X 'F. I v (J - n r T X X ry r l v f = cJ ATTACHMENT D COUNTY SANITATION DISTRICTS OF LOS ANGELES COUNTY SCHEDULE OF RATES FOR SOLID WASTE MATERIALS RECOVERY, TRANSFER, AND DISPOSAL FACILITIES Payment must be in cash at the scales or by pre -arranged credit. No checks are accepted FACILITY RATE '. January 1. 2013 PUENTE HILLS LANDFILL, Whittferoll°I Municipal Solid and Inert Waste $38A1 hon Volume Discount Program t'I- Discounted Rate for ALL Tonnage Received that Month Direct Haul >5,000 tons in a calendar month 34.32 Iton Transfer Haul >5,000-12,500 tons in a calendar month 32.53 /Ion >12,500 - 18,750 tons in a calendar month 31.23 ilon >18,750 tons in a calendar month 2IIA3 /ton Hard -to -Handle, Bulky Items 46.39 /ton Tires 82.41 /ton Special Handling 63.16 /ton Minimum Charge MSW 37.40 per load Pull -Offs 33.00 each Segregated Uncontaminated Green Waste (1 -ton minimum charge)23.:9 ton Clean, Segregated Asphalt 2,00 /ton Minimum Charge Asphalt 20,00 per load PUENTE HILLS MATERIALS RECOVERY FACILITY fMRF1, Whittier Municipal Solid and Inert Waste nl $42.44 /ton Hard -lo -Handle, Bulky Items in 46.54 /ton Minimum Charge MSW ut 37.55 per load RATE Rates for Recyclables Paid by the Districts (0.25 ton minimum) February 1, 2013 Cardboard $110.70 Aon Any typo of paper $71.10 Non Mixed Rigid Plastic (such as children's toys, buckets, car bumpers, etc,) $86.40 /ton Mixed recyclables (recycle content of at least 85 %)" 1 $36.00 Iton Mixed recyclables (recycle content of al least 75%) lsl $33.30 /Ion RATE SOUTH GATE TRANSFER STATION, South Gate February 1. 2013 Municipal Solid and Inert waste fit $51.91 Icon Hard -t9 -Handle, Bulky Items n) 59.16 [ton Minimum Charge MSW Irt 38.97 per load RATE Rates for Recyclables•Paid bythe Districts (0.25 ton minimum) February 1. 2013 Mixed Rigid Plastic such as children's toys, buckets, car bumpers, etc.) $85.40 /Ion RATE DOWNEY AREA RECXCLING & TRANSFER FACILITY lD.A.R.T.1, Downey Januar, 1, 2013 Municipal Solid and Inert Waste 1'1 $54,45 ADD Hard -lo -Handle, Bulky Items I'1 61.70 /Ion Minimum Charge, MSW ro - 39.97 per load Segregated Uncontaminated Green Waste (1 -Lon minimum charge) 11j 39.97 /ton RATE Rates for Recyclables Paid by the Districts (0.26 ton minimum) February 1. 2013 Cardboard $110.70 /ton Any type of paper $71.10 lion Mixed Rigid.Plastic (such as children's toys, buckets, car bumpers. etc-) $86.40 Non Mixed recyclables (recycle content of at least 85 %) m $36.00 /ton Mixed recyclables (recycle content of at least 75 $33.30 hon CALABASAS LANDFILL, Agoura runI Municipal Solid and Inert Waste $40.82 /ton Ham -lo -Handle, Bulky Items 48,79 /tan Tires 64.82 /ton Special Handling 57.32 ADD Minimum Charge MSW 38.25 per load Pull -Offs 33.00 each Segregated Uncontaminated Green Waste (1 -ton minimum charge) 2525 /ton Asphalt 5.50 /ton -Minimum Charge 20.00 per load 809862 ATTACHMENT E COUNTY SANITAT}NDISTRI"c; OF LOS ANGFLEE COUNTY SCHEDULE OF RATES FOR SOLID WASTE MATERIALS RECOVERY. TRANSFER AND DISPOSAL FACILFHES Uncovered L- ada Capable of Produclny Lillen PUenlo 11111. Landfill, Calabasas Landfill, Puente Hills MRP, South Gale, DANT- 54A01tcn awchar0a; 54.40 minimum Scholl Canyon Landoll - $5.00itun sUrOliaryO; 55.00 minimum NnmmMik,M.d Tire Loads: Puente bulli and Caab.tie LanG011s- S4A0/ton surch.,u.; $4.40 mibimum Scholl Canyon LnnAll - 55.O0llon surcharge: .85..00 rninlmum ulAll rales exclodin0 pull -offs, green waste, sari 1, and cleandid Include ilia following lues, as Gp,4roprlals: 0mlifin to Inteeralad Solid Waste Manayetnard Foo: Los Angeles County Solid Wasls Manngomanl Few. Los Angelos C ouhry Dapartniont of H.Nllh Sarvlcas Rsgulalory Service Foe: Irl All mlws and eurcharoea f00,16 he, Lon Angola. County &ulnas License Tax, as.anpropriaW 10% 0191.18 (0001PIA., exdudin0.1.1. and local fees and laXei jsl Cuslomars of.st be rogl0c,ed w1h the Districts for rhe Valens Discount PreQlam to receive Ilse discounted fates. "'All teles and surcharges (except for Clean Dirt) includa the CIH or Glendale - Scholl Canyon Landfill Asa9ssnisnl: 25%oF {rrnsr. raceiPrs vehicles awned s➢d operated bythe Cityof GI.ndale are exempt RATES CONTINUED ON NEXT PAGE DOC 017485'07 .$1.40 per ton $1.50 )1sf an $0.30per an :RATE Jahuary 1; 2072.1' r'( INT6 HILLS LAN) LL, Whittier Int°I t un cllial Solid and Ihort Waste ,'$58.41 lion Volume Discount Program cal Direct Haul X5,000 Ions in a calendar month 34.32. /ton Transfer Maul >5,000 -12,500 tons in a calendar month '52.53 lion >12,500 113,750 Ions in a calendar month 31.23 /ton 518,750 tons in a calendar month 28.43 /Ion Hard-10,1andla, Bulky Items 46.39 Ilan Tires 82:31 /ion Special Handllnn 63.16 /Ion Minimum Charge MSW 3740 per load PulkOffs 33.0 each !Segregated Uncomamina4ed Green Wasla;(1=1on Mllilnium therge) . 85- tam PUENTE HILLS MATERIALS RECOVERY FACILITY(MRF), Whittier l") Municipal Solid and InerCWasio ' $42.441ion MiXed Plastics -25.00 lion Hard -to -Handle, Bulky Items 46.54 Ron Minimum Chargo MSW 37.55 per load 50UTI-I GAPE IRANSFER STATION, South Gate I't W1lolp81Solld and Inert Waslo $60.68 /ton Mixed P13SLICS 25,00 hon Hord -lo -Handle, Bulky hems 57.93 /ton Minimum Charge M5W 78.05 per load DOWNEY AREA RCCYCLING & TRANSFER FACILITY T) A.R.T.I, Downey tri Municipal' Solid and Inert Waste $54.x5 !tori MiXed Plastics 20-0D llon Hard-tc-llandte, Bulky Reins 61.70 /Ion Minimum Charge MSW 38.05 per load 5egMitated. Uncontaminoled Green Waste (1 -ton minimum charge) 38.95 lion CALABA5AS LANOFILL, Agoura lip) Municlpal Solid and Inert Waste $40:42 lion Hand -lo -Handle, Bulky Items 48.79 Hun Tires 84,82 Aon Special Handling 57:32 Icon Mlnimunl Chalet. MSW 39;25 per load Pull -Offs 33.00 each SogregaLod Uncontaminated Green West3 (1 -Ion minimum charge) 25.25 lion Aspllatt 5,50 lion -Minimum Charge 20.00 per load SCHOLL CANYON LANDFILL, Glendale 11p0 Munld l Solid and Inert Waste $49.16 lion I -lard -to -Handle, Bulky Items 58.24 lion Tires 92.93 Ilan Special Handling 66.99 /Ion Minlinulu Charge MSW 4844 per load pulkoffs 40,00 each Segregated U nconlarnina ted Green Waste (I -ton minimum charge) 25.25 /[on Aspholt 8.50 lien -Minimum Charge 80.00 per load Clean Dirt 4.00 Icon -Minimum charge 30,00 por load Uncovered L- ada Capable of Produclny Lillen PUenlo 11111. Landfill, Calabasas Landfill, Puente Hills MRP, South Gale, DANT- 54A01tcn awchar0a; 54.40 minimum Scholl Canyon Landoll - $5.00itun sUrOliaryO; 55.00 minimum NnmmMik,M.d Tire Loads: Puente bulli and Caab.tie LanG011s- S4A0/ton surch.,u.; $4.40 mibimum Scholl Canyon LnnAll - 55.O0llon surcharge: .85..00 rninlmum ulAll rales exclodin0 pull -offs, green waste, sari 1, and cleandid Include ilia following lues, as Gp,4roprlals: 0mlifin to Inteeralad Solid Waste Manayetnard Foo: Los Angeles County Solid Wasls Manngomanl Few. Los Angelos C ouhry Dapartniont of H.Nllh Sarvlcas Rsgulalory Service Foe: Irl All mlws and eurcharoea f00,16 he, Lon Angola. County &ulnas License Tax, as.anpropriaW 10% 0191.18 (0001PIA., exdudin0.1.1. and local fees and laXei jsl Cuslomars of.st be rogl0c,ed w1h the Districts for rhe Valens Discount PreQlam to receive Ilse discounted fates. "'All teles and surcharges (except for Clean Dirt) includa the CIH or Glendale - Scholl Canyon Landfill Asa9ssnisnl: 25%oF {rrnsr. raceiPrs vehicles awned s➢d operated bythe Cityof GI.ndale are exempt RATES CONTINUED ON NEXT PAGE DOC 017485'07 .$1.40 per ton $1.50 )1sf an $0.30per an