2005 AGN JUL 05 I18 - Laserfiche WebLink

Browse Search

ITEM #18 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JULY 5, 2005 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 REPUBLIC INDUSTRIES OF SOUTHERN CALIFORNIA FOR FISCAL YEAR 2005/2006. DATE: June 13, 2005 BACKGROUND: Prior to fiscal year 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 fiscal year 1995/1996. Taormina Industries, LLC now known as Republic Industries of Southern California, LLC was the contractor that was able to provide residents with the lower rate of $15.96. The initial agreement with Republic Industries of Southern California was amended in 1999 and 2005 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 (CPI) in the Orange, Los Angeles and Riverside County Index Prices — this is to account for increases that Republic Industries 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 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 Republic Industries. Last year's single family rate without the utility tax was $17.87; result of the following increases in cost: • CPI increase • San Bernardino County Disposal Cost increase • Franchise Fee 7/10/03 City Clerk's Office Cb the proposed rate of $18.62 is a $0.449 $0.175 $0.11.