2004 AGN MAY 18 I08 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF May 18, 2004 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Amer Jakher, City Engineer SUBJECT: Proposed Rates for Commercial and Residential Collection of Refuse Per the Amended Agreement With Taormina Industries. DATE: May 3, 2004 Item #8 Prior to FY 1996 residential municipal solid waste collection and disposal services, as well as 'light' commercial solid waste collection and disposal services were provided by the Refuse division of Public Works Department. As of July 1996 the City of Colton chose to contract these services out because this choice provided residents a lower rate of $15.96 compared to the rate of $18.40 being charged to residents at the end of FY 1995/1996. Taormina Industries, LLC (Republic Services) was the contractor that was able to provide residents with the lower rate of $15.96 and continues to provide these services at rates lower than those in place before FY 1996. The initial agreement entered into with Taormina was amended in 1999 but retains the initial Rate Adjustment Clause which stipulates that rates are determined as a result of two variables: 1) the Tipping Fee Component and 2) the Service Fee Component. The Tipping Fee Component varies as a result of changes in the costs of the tipping fee, the charge of disposing of the collected refuse, which is charged to the hauler by the agreed upon disposal or composting facilities. Increases experienced by the Service Fee Component will result due to an increase in the Consumer Price Index in the Orange, Los Angeles and Riverside County Index Prices — this is to account for increases that Taormina may incur as a result of increases in labor, equipment and insurance thus increasing their internal costs to providing the contracted service. DISCUSSION/ANALYSIS: The residential rate provides for the collection and composting of solid waste, green waste, recyclable materials and bulky items. The City of Colton continues to receive a 15% Franchise Fee, a percentage of the rate charged by Taormina. The San Bernardino County Landfill Adjustment is estimated to increase the tipping fee (Tipping Fee Component) paid by the hauler by 2.83%. Additionally, the January CPI local index shows an increase of 1.80%, effectuating an increase in the Service Fee Component of the Rate Adjustment Clause. The cost of the solid waste service to residents would increase 2.01% but next fiscal year's rates also incorporate a processing facility Host Fee Credit; this Credit is new and was not applied last year because the processing facility was not complete. As a result the proposed residential single family rate is $17.87, $0.25 less than last year. Once the residential rate is adjusted to incorporate the 4% Utility Users Tax, approved by the voters in March, the monthly single family rate will be $18.58; therefore, the total rate charged would experience a $0.46 increase from last fiscal year's rate of $18.12. 7/10/03 City C1ffk's0fficeCb