12-11-2012 CC RPT 22 - Laserfiche WebLink

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Refuse Rates 5-Year Structure FY 2013 • Page 2 rate structures for the next five-year period and seek authorization to proceed with notifying rate payers of the proposal, allowing them an opportunity to comment and/or protest in accordance with Proposition 218. On November 13, 2012, the Public Works Department presented a related item to Council to amend the City agreement with Agua Mansa MRF, LLC (Agua Mansa Agreement) for processing and transfer services at the Agua Mansa Material Recovery Center (MRF). The amendment to the Agua Mansa Agreement extended the services to 2029 and included a one- time increase to the contract price due to price increases that have occurred for diesel fuel. In order to fully fund the increase in costs in the Agua Mansa Agreement, a one-time increase in the residential and commercial refuse rates is included in the proposed rate structure. If approved, the updated rate structure would become effective July 1, 2013. Commercial Rate Structure The ten-year rate structure approved by Council on June 24, 2008 established rates, which include several components to provide services as allowed under Proposition 218 including: a base rate; a disposal fee; a processing/transfer fee; a franchise fee; a landfill closure fee; a City administrative fee; an AB939 fee; and a street sweeping fee. The approved rate structure includes an annual adjustment based on the Consumer Price Index (CPI). The proposed rate increases include continuing the annual CPI increases to maintain current service levels, and a one-time adjustment for diesel fuel for the processing/transfer fee. Additionally, in order to simplify billing and administrative processes, it is proposed that the fees associated with City services be consolidated into one City Service Fee. The details for each fee are as follows: 1. Base Rate: The base rate is the cost of collection services provided by the City's commercial haulers to pick up trash and dispose of it at the MRF. The City currently has franchise contract agreements with Athens, CR&R and Burrtec Waste to provide commercial service within the City of Riverside. Each are only allowed to charge this base rate which is approved by City Council for disposal of regular trash. The businesses and commercial haulers have the option of disposing of recyclable materials by alternate means. The annual CPI increase to this fee is proposed to continue to fully fund the CPI increases in the commercial contracts currently in place and no additional increase is proposed. 2. Disposal Fee This component is a County of Riverside fee to dispose of trash at the County landfill. It is a pass-through cost to the commercial haulers which is passed on to the customers. 3. Processinq Fee This fee funds the cost of processing and disposing of regular trash, green waste, and recyclable material pursuant to the Agua Mansa Agreement. Waste which is not recycled is disposed of at the County landfill. The Agua Mansa Agreement includes an annual CPI increase plus a one-time adjustment to cover increases in diesel fuel costs needed to transfer waste to the County landfill. The one-time increase of 44¢ per ton translates into a 29¢ per month increase for the cost of a commercial 3-yard bin with weekly service. 22-2