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Home My Public Portal About15) 10A_Athens Rate Increase_Staff ReportMANAGEMENT SERVICES DEPARTMENT MEMORANDUM DATE: June 15, 2021 TO: The Honorable City Council FROM: Bryan Cook, City Manager SUBJECT: CONSIDERATION OF ANNUAL RATE ADJUSTMENT REQUEST BY ATHENS SERVICES FOR SOLID WASTE COLLECTION RECOMMENDATION: The City Council is requested to approve the annual rate adjustment request by Athens Services (Athens) for solid waste collection services to become effective July 1, 2021 (Attachment “A”). BACKGROUND: 1.On February 16, 2021, the City approved an Amended and Restated Agreement with Athens Services to provide a comprehensive waste hauling and recycling program to comply with State Law including Senate Bill 1381. 2.On May 13, 2021, Athens submitted a letter requesting City approval of a rate adjustment to be effective July 1, 2021 (Attachment “A”). AN ALYSIS: In February 2021, the City and Athens after many months of negotiations agreed to an amended and restated agreement to provide comprehensive waste hauling and recycling program to comply with State Law. The new agreement required that the residents and businesses move from a twice a week manual system, to an automated system to address three forms of waste (Regular Trash, Recyclables, and Organic Material). This was the most feasible way to comply with the State requirement for collecting the three forms of waste. Adjustment in rates was made to accommodate mandated changes. To mitigate the impact of the cost of the major transition, the agreement provided for rates to increase by 3.65% for residential customers, and between 20.2% and 26.5% for commercial and multi-family customers as of January 1, 2021. Athens has AGENDA ITEM 10.A. City Council June 15, 2021 Page 2 of 3 implemented these rate adjustments and has worked with customers to address the transition to automated system and the roll-out of the state-required organics program. Per the amended and restated agreement Athens every July 1st of each year may implement a Customer Price Index (CPI) adjustment, (LA-Long Beach Metro area) and a 1% Capital Replacement Fee. Each year the total increase cannot exceed 5% for the combined CPI and a 1% capital replacement fee. The CPI for the July 1, 2021, is 2.19%, totaling an increase to base service rate of 3.19% (2.19% CPI, and 1% capital replacement fee). Starting July 1, 2021, AB 939 fees are adjusted on a one-time basis from the current 0.5% for residential customers to 1%, and for multi-family complexes and commercial accounts from the current 3% to 4% of the base rate, respectively. These fees assist with technical compliance with State Mandates. The standard residential 64-gallon cart service rate would go from $37.21 to $38.59 per month. The standard commercial 1- yard bin service rate for the 1 per week service 1 cubic yard bin would go from $173.42 to $180.93. During the budget discussion, the City Council may consider providing a one-time trash rate rebate which would temporarily offset the increase for standard residential 64-gallon cart service by approximately $1.69 per month, or $20.27 for the year which would cover the annual increase. The City could partially offset the increase for all commercial accounts at $9.62 per month, or $115.38 for the year. This would assume the City utilizing $300,000 split by $150,000 for residential accounts and $150,000 for commercial accounts for approximately 7400 residential accounts and 1300 commercial accounts. This rebate could apply for six months as billing credit to each customer, and after six months this temporary rebate would expire with no further City rebate credit to ratepayers. Pursuant to the Agreement, Athens submitted their annual rate adjustment request on May 13, 2021, and met the time requirements of submitting the rate adjustment. CITY STRATEGIC GOALS: Approving the requested rate increase furthers the City’s Strategic Goals of Good Governance and Public Health and Safety. City Council June 15, 2021 Page 3 of 3 FISCAL IMPACT: The requested rate adjustment will affect residential and commercial trash service rates but will have no impact on the Fiscal Year (FY) 2021-22 City Budget. A rebate of $300,000 would require an appropriation from General Fund Reserves. ATTACHMENT: A.Rate increase request from Athens dated May 13, 2021. Attachment A CITY OF TEMPLE CITY MAXIMUM SERVICE RATES EFFECTIVE JULY 1, 2021 Service New 5% AB939 Additional Net Franchise Support Customer Charge Rate Fee Fec Rate Per Bin Roll Off (includes 6 tons) Per Ton Charge (over 6 tons) 1,040.44 57.17 45.73 109.22 6.00 4.80 1,143.34 120.02 Customer Owned Commercial Carts - up to 32 gallon in size (includes mixed recycling and 32 or 64 gallon organics cart) 69.21 3.80 3.04 76.05 2 104.09 5.72 4.58 114.39 3 137.74 7.57 6.05 151.36 4 171.47 9.42 7.54 188.43 5 205.18 11.27 9.02 225.47 6 238.88 13.13 10,50 262.51 Street Sweeping 20,060.10 20,060.10 Residential and Multi -Family Bin Service (includes mixed recycling and 32 or 64 gallon organics cart) I YD IX 173.30 9.52 7.62 190,44 148.14 2X 282.39 15.52 12.41 310.32 242.64 3X 391.69 21.52 17,22 430.43 337.06 4X 500.78 27.52 22,01 550.31 431.61 5X 609.97 33.51 26.81 670.29 522.89 6X 751.21 41.28 33.02 825.51 647,51 1.5 YD 2 YD 3 YD IX 198.99 10.93 8 75 218.67 170.24 2X 311.50 17.12 13.69 342,31 266.76 3X 423.93 23.29 18.63 465.85 363.36 4X 535.91 29.45 23.56 588.92 460.47 5X 648.82 35.65 28.52 712.99 553.17 6X 793.22 43.58 34.87 871.67 676.63 1X 227.95 12.52 10.02 250.49 195.74 2X 356.41 19.58 15.67 391.66 304.52 3X 485.05 26.65 21.32 533.02 413.12 4X 613.53 33.71 26.97 674.21 521.78 5X 742.11 40.78 32.62 815.51 630,29 6X 905.86 49.77 39.82 995.45 772.65 IX 256.98 14.12 11.30 282.40 219.93 2X 392.02 21,54 17.23 430.79 332.76 3X 527.02 28,96 23.17 579.15 445.56 4X 662.11 36.38 29.10 727.59 558.26 5X 797.19 43.80 35.04 876.03 671,05 6X 967.44 53.16 42.52 1,063.12 817.46 CITY OF TEMPLE CITY MAXIMUM SERVICE RATES EFFECTIVE JULY 1, 2021 Other Optional Services and Fees New 5% A13939 Net Franchise Support Customer Rate Fce Fcc Rate Residential Cart Services Late Fees (1.5% per month, $5.00 minimum) 4.99 0 05 5.04 Declined Payment (Any Reason) 25.80 0.26 26.06 Stop Service 25.80 - 0.26 26.06 Resume Service 2580 0.26 26.06 Account Site Estimate 10.32 0.10 10.42 Standby Time (Each 15 Minutes) 36.12 - 0.36 36.48 Excess Waste or Excess Weight 20.64 0.21 20 85 Go -Back, Dead -Run, Extra Pick -Up, or Contamination 20,64 0.21 20 85 Go -Back or Dead -Run on Scheduled Bulky Item Collccitan 20,64 - 0.21 20 85 Cart Push -Out Service (For all Carts per Home or Unit) 12.38 0.54 12.92 3 Yard Temporary Bin 185.74 1.88 187 62 3 Yard Temporary Bin - With Scout Service 232 18 2.35 234 53 3 Yard Temporary Bin - Extra Dump, Dead -Run, or Go -Back 144.47 1.46 145 93 3 Yard Temporary Bin - Delivery, Exchange, Removal 185.74 1.88 187 62 3 Yard Temporary Bin - Per Day Over 7 Days with No Dump 10 32 0.10 10 42 All Commercial Services. and Multi -Family & Residential Bin Services Late Fees (1 5% per month, $5.00 minimum) 4 75 0.26 0.21 5.22 Declined Payment (Any Reason) 25 80 1.42 1.13 28.35 Stop Service 25 80 1.42 1.13 28.35 Resume Service 25 80 1.42 1.13 28.35 Account Site Estimate 10 32 0.57 0.45 11.34 Standby Time (Each 15 Minutes) 36 12 198 1.59 39 69 Organics Cart Sanitation Charge (per cart per month) 4.75 0.26 0.21 5.22 Organics Contamination Fee 237 34 13 04 10,43 260.81 64 Gallon Organics Cart(above base service) 100.88 5.54 4.43 110.84 (monthly rate is for each additional cart & frequency) 32 Gallon Organics Cart (above base service) 75.66 4.16 3.33 83.15 (monthly rate is for each additional cart & frequency) 1.5YD-2YD Organic Bin, & 1 OYD-30YD Organic Roll -off (125% of corresponding mixed waste rates) 3 Yard Temporary Bin 185 74 10.21 8.16 204.11 3 Yard Temporary Bin - With Scout Service 232,18 12.76 10.21 255.15 3 Yard Temporary Bin - Extra Dump, Dead -Run, or Go -Back 144.47 7 94 6.35 158 76 3 Yard Temporary Bin - Delivery, Exchange, Removal 185.74 10 21 8.16 204 11 3 Yard Temporary Bin - Per Day Over 7 Days with No Dump 10.32 0.57 0.45 11.34 Bin Scout or Push -Out (Per Bin per Frequency) 12.38 0 68 0.54 13 60 Cart Push -Out Service (Per Cart per Frequency) 12 38 0.68 0.54 13 60 Bin Lock -Lid Installation (Permit crap - Per Lock) 3b 12 1.98 1.59 39.69 Bin Lock -Lid Service (Perm/Temp - Per Lock per Frequency) 12.38 0.68 0.54 13.60 Bin Wash-Out/Clean-Out 67.07 3.69 2.95 73.71 Bin Enclosure Pressure Washing (Per Hour. 1 Hour Minimum) 67_07 3.69 2.95 73.71 Bin Excess Waste. Excess Weight, or Extra Dump 57.79 3.18 2.54 63.51 Bin Dead -Run or Go -Back 57 79 3.18 2.54 63.51 Bin Delivery, Exchange, or Removal 77 39 4 25 140 85.04 Bin Container Size Exchange 77.39 4.25 3.40 85.04 Bin Exchange - Metal Lids 154.79 8.50 6.80 170.09 Bin Exchange - Burned Bin 412 76 22.68 18.14 453.58 Bin Fabrication (Custom - Per Cubic Yard) 206 38 11.34 9.07 226 79 Bulky Item Pick -Up - First Item or Dead -Run on Scheduled Pick -Up 25 80 1.42 1.13 28.35 Bulky Item Pick -Up - Each Additional Item 15 48 0 85 0.68 17.01 Go -Back or Dead -Run on Scheduled Bulky Item Callccilon 20 64 1 13 0.91 22.68 Industrial Roll -Off Services Same Day Service - Expedited Request Delivery, Relocation, Removal, Dead -Run, or Go -Back Demurrage per Day (No Hauls in 30 Days) "Rocket Launcher" Service (Per Hour) Plastic Liners Roll -Top Rental Permanent Box Rental Compactor Rental Compactor Wash -Out Certificate of Destruction 51 60 2 84 15479 850 15 48 0.85 139.31 7.65 3612 198 51.60 2 84 154 79 8 50 567.55 31 18 257.98 14.17 41.28 2 27 2.27 6.80 0.68 6.12 1.59 2.27 6.80 24.95 11.34 1.81 56.71 170.09 17.01 153.08 39.69 56.71 170.09 62168 283.49 45.36