AGENDA BILL. Beaverton City Council Beaverton, Oregon BUDGET IMPACT AMOUNT BUDGETED$
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1 AGENDA BILL Beaverton City Council Beaverton, Oregon SUBJECT: Resolution Establishing Rates for the Collection of Solid Waste FOR AGENDA OF: BILL NO: Mayor's Approval: /}-e 6 /\.'=a ~c.-/, DEPARTMENT OF ORIGIN: Mayor's Office PROCEEDING: CONSENT AGENDA BUDGET IMPACT DATE SUBMITTED: CLEARANCES: City A\ln:y ~ GAO J-1 < - EXHIBITS: Resolution Rate Structure Letter from Franchised Haulers EXPENDITURE REQUIRED $0 AMOUNT BUDGETED$ APPROPRIATION REQUIRED $0 RECOMMENDED ACTION: City Council approves a resolution establishing solid waste collection rates for residential, multi-family and commercial customers within the City of Beaverton (City), effective for services delivered on and after November 1, HISTORICAL PERSPECTIVE: Beaverton Code (BC) provides the general structure of the franchised hauler collection system, and operational practices are regulated by administrative rules adopted by the Mayor. On April 2, 2013, the City Council granted non-exclusive solid waste franchises to six companies: Aloha Garbage & Recycling Company, Garbarino Disposal & Recycling Service, Pride Disposal Company, Walker Garbage Service, Waste Management of Oregon (WM), and West Slope Garbage Service. The Uniform Rate Setting section of BC ( ) requires that rates for services provided by the franchised solid waste haulers be set by Council resolution based on the cost of providing services, including a target nine percent operating margin, based on financial information provided to the City. INFORMATION FOR CONSIDERATION: The six franchised haulers submitted their annual financial reports to the City for calendar year 2014 in March The data from these reports, and updates in August, was the basis for a franchisee costof-service analysis which resulted in this proposed rate adjustment to bring composite rates into accordance with BC. Staff utilized a contract with Bell & Associates, a consulting firm specializing in solid waste and recycling, to perform a rate analysis to evaluate the collection and financial data. The analysis projects an operating margin of 4.69 percent for 2015, which is below the nine percent operating margin target and seven to eleven percent range required by the franchise code. The monthly subscription rate for residential services will increase by five percent (which equates to an increase of $1.20 for 35-gallon roll-carts, the most common level of service). Commercial rates will increase five percent. There are no changes to drop box delivery and haul fees in this rate proposal. Agenda Bill No: 15225
2 The most significant factor contributing to this rate increase proposal is the condition of the global recycling commodity market. After peaking in calendar year 2011, the sale of materials to recycling markets has been trending downward and has become a processing expense, instead of revenue generator. In 2013, the haulers received nearly $400,000 in revenue from the sale of collected recycling materials, and in 2015 they are projected to pay processing fees of approximately $280,000 - a revenue-to-expense swing of nearly $700,000. Franchised haulers are paying a processing fee of $17-25 per ton when they deliver materials to local recycling processing facilities. It is important to note that the recycling processing fee is still significantly less than sending it to a landfill at $94.98 per ton. In addition to the change in recycling markets, the garbage tip fee at Metro transfer stations increased from $93.33/ton to $94.98/ton on July 1, 2015 ($1.65/ton or 1.7 percent) and yard debris processing costs are projected to increase by 9.35 percent as yard debris processors upgrade their facilities to comply with environmental regulations. A public hearing on the proposed rates was held on October 13, 2015 and the resolution was forwarded to the next meeting (October 20, 2015) for Council action. Agenda Bill No: 15225
3 RESOLUTION NO A RESOLUTION ESTABLISHING RATES FOR THE COLLECTION OF SOLID WASTE WHEREAS, Beaverton Code authorizes the City Council to establish by resolution the maximum rates charged for solid waste collection by the City's franchised haulers; and WHEREAS, Oregon Revised Statutes Chapter 459 grants the City the authority to regulate solid waste collection and mandates the development of a recycling program; and WHEREAS, Beaverton Code calls for the establishment of rates that are fair to the public, the Franchisee and the City, encourage waste reduction and promote safe, efficient collection, NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAVERTON, OREGON: The rates set forth in the attached Exhibit A shall be the maximum rates that may be charged by franchised solid waste haulers within the City, effective for services rendered on and after November 1, 2015, superseding all previously adopted rate resolutions. Adopted by the Council this day of October, Approved by the Mayor this day of October, Ayes: Nays: ATTEST: APPROVED: Catherine Jansen, City Recorder Denny Doyle, Mayor Resolution No Agenda Bill No
4 Exhibit A - Resolution 4343 City of. Beaverton SOLID WASTE & RECYCLING RATES AND SERVICES Effective November l, 2015 RESIDENTIAL SERVICE RATES Standard Residential Rates Size of Cart Rate 20-gallon roll-cart $22.05 per month 32/35-gallon roll-cart Includes weekly collection of: $25.20 per month f--~ l garbage, recycling (60-gallon roll-cart), yard debris (60-gallon roll-cart) and 60-gallon roll-cart glass (14-gallon bin) $38.85 per month 90-gallon roll-cart Recycling only Yard Debris only Subscription for weekly collection of 60- gallon recycling roll-cart Subscription for weekly collection of 60- gallon yard debris roll-cart $45.15 per month $7.35 per month $7.35 per month 32/35-gallon roll-cart for Garbage Other Residential Fees Extra Solid Waste (occasional) Extra Yard Debris (occasional) Second Yard Debris Roll-cart Call-backs/Return Service Off-curb Service Fee Over-capacity Fee Per bag or roll-cart, 32 gallon capacity Per Kraft bag or set-out, up to 32-gallon capacity Subscription for weekly service of a second 60-gallon roll-cart Return for pick-up of inaccessible rollcart Roll-cart services more than 5 feet from curb When roll-cart is overfilled $12.60 per occurrence $4.85 per oc<;:urrence $3.63 per occurrence $6.04 per month $11.50 per occurrence $25.00 per occurrence $2.30 per occurrence Special Services or Bulky Waste Fee Per hour, plus disposal, if applicable $70.00 per hour Account Reinstatement Fee NSF Check Fee Non-sufficient funds Tire Disposal Not accepted at curb; See Bulky waste pick-up. 2
5 COMMERCIAL SERVICE RATES Commercial Standard Rates Size of Garbage Cart Description Rate 32/35-gallon Roll-cart Includes weekly collection of garbage, $ per month 60-gallon Roll-cart recycling (60-gallon roll-cart), and glass (14- $37.80 per month 90-gallon Roll-cart gallon bin) $ per 'month Subscription for weekly service of a second Recycling Cart Service 60-gallon roll-cart; per cart, per weekly (additional or Recycling-only) pick-up $9.45 per month Subscription for weekly collection of l to 8 Recycling Container Service yard recycling container; per container, (additional or Recycling-only) per weekly pick-up $42.00 per month Other Commercial Fees Access/Distance Fee Per container; per each 50-feet after first 50-feet; per occurrence $6.00 per occurrence Call-back/Return Service For pick-up of inaccessible container $25.00 per occurrence Over-Capacity Fee When container is overfilled $24.00 per estimated yard Over-Weight Fee For containers exceeding maximum weight Based on actual disposal cost. Multi-family Recycling Services Fee Only if using drop box or compactor $2.00 per unit, per morith Special Services/Bulky Waste Fee Per hour, plus disposal, if applicable $70.00 per hour Account Reinstatement Fee NSF Check Fee Commercial Container Rates and Services Non-compacted material; Includes weekly recycling and glass collection Container Size Number of collection pick-ups per week: One Two Three Four Five Six 1-yard $ $ $ $ $ $ $ $ $ $ $ $ yard $ $ $ $ $ $ $ $ $ $ $ $ yard $ $ $ $ $ $ $ $ $ $ $ $ yard $ $ $ $ $ $ 1, $ $ $ $ $ $ yard $ $ $ $ $ 1, $ 1, $ $ $ $ $ $ yard $ $ $ $ 1, $ 1, $ 1, $ 271 '15 $ $ $ 1, $ 1, $ yard $ $ $ $ 1, $ 1, $2, $ $ $ $ 1, $ 1, $ yard $ $ $ $ $ 2, $ 2, $ $ $ 1, $ 1, $2, $ 2, *Each additional applies in situations where containers are adjacent to each other on the same site. Containers separated on a site shall be subject to the full fee. Commercial Compacted Container Rates Rate is 2.25 times the loose container rate (from above chart). Are based on containers from one to four yards, owned and maintained by the customer. The weight per yard shall not exceed 500 pounds. 3
6 Commercial Organics (Food Scrap) Container Rates Commercial organics rates are available to Beaverton businesses generating food scraps at the subscription quantity. The rate model provides for service at fifty percent of the cost of garbage service. Collected materials are limited to food scraps and non-food items on the city-approved collection list. Contaminated loads will be collected at the standard garbage rate. Container Number of collection pick-ups per week: Size One (2) Two Three Four Five Six 1-yard $ $ $ $ $ $ $ $ $ $ $ $ yard $ $ $ $ $ $ Each. additional* $ $ $ $ $ $ yard $ $ $ $ $ $ $ $ $ $ $ $ yard $ $ $ $ $ $ $ $ $ $ $ $ yard (1) $ $ $ $ $ $ $ $ $ $ $ $ *Each additional applies in situations where containers are adjacent to each other on the same site. Containers separated on a site shall be subject to the full fee. SERVICE NOTES: (1) Due to weight and equipment capacity limitations, business food scrap collection will generally occur in containers 3-yards and less in size. Haulers are not required to provide container service at the 4-yard level but a rate is provided should future equipment capacity enable the larger size. (2) Food scrap collection is generally be available only at the "one" time per week collection level. Haulers are not required to provide more frequent service until collection volume and routes enable multiple collection days. Commercial Organics Roll-cart Rates Rate $ per month $ ':'-=----=::.:...:...::;:_=-:~=-:::-=--=:..:...:..::.-=----=.:...cc.LL---' J 30 and 40-yard boxes are not available $ per occurrence for organics (food scraps) collection due to weight limitations. $ per occurrence $ per occurrence
7 DROP BOX AND COMPACTORS SERVICE RATES Drop Box Rates: Actual disposal cost and fees, PLUS Size Delivery Fee $65.00 Haul Fee (10 and 20-yard boxes) $ Haul Fee (30 and 40-yard boxes) $ Haul Fee (Compactor Service) $ Mileage (If round trip to landfill/transfer station is more than 24 miles.) Actual disposal cost is rate charged at a Metro-approved landfill or transfer st<;:jtion. Fees include the operating margin and franchise fee Demurrage ~oily (per day, after 48 hours) Monthly (based on 20 days per month) MEDICAL WASTE Only approved medical waste/sharps containers may be used. 1 0-yard or 20-yard box $ yard box $ yard box $9.45 $1.50 per mile 10-yard or 20-yard box $ yard box $ yard box $ No. of containers per pick-up Size of Container 9 20 or or 48 Gallon Gallon Gallon 1 $55.20 $56.95 $ $36.70 $38.20 $ $30.40 $31.85 $ $26.40 $27.85 $ $24.10 $25.60 $ $22.15 $23.65 $ $20.60 $22.10 $ $19.20 $20.70 $ $18.15 $19.60 $ $18.70 $20.30 $ $17.95 $19.55 $ $17.30 $18.90 $ $16.70 ' $18.25 $ $16.20 $17.75 $ $15.80 $17.35 $ $15.40 $16.90 $ $15.40 $16.90 $ $15.40 $16.90 $ $15.40 $16.90 $ $15.40 $16.90 $ $15.00 $16.25 $ $15.00 $16.25 \ $ $15.00 $16.25 $16.55
8 City of Beaverton SOLID WASTE & RECYCLING RATES AND SERVICES (Proposed and Current) Effective November l, 2015 Standard Residential Rates Size of Cart RESIDENTIAL SERVICE RATES 20-gallon roll-cart $22.05 per month ($21.00) 35-gallon roll-cart Includes weekly collection of: $25.20 per month ($24.00) , garbage. recycling (60-gallon roll-cart), yard debris (60-gallon roll-cart) and 60-gallon roll-cart glass (14-gallon bin) $38.85 per month ($37.00) 90-gallon roll-cart Recycling Only Yard Debris Only Subscription for weekly collection of 60- gallon recycling roll-cart Subscription for weekly collection of 60- gallon yard debris roll-cart $45.15 per month ($43.00) $7.35 per month ($7.00) $7.35 per month ($7.00) 35-gallon roll-cart for Garbage Other Residential Fees Extra Solid Waste (occasional) Extra Yard Debris (occasional) Second Yard Debris Roll-cart Call-backs/Return Service Off-curb Service Fee Over-capacity Fee Special Services or Bulky Waste Fee Account Reinstatement Fee NSF Check Fee Per bag or roll-cart, 32 gallon capacity Per Kraft bag or set-out. up to 32-gallon capacity Subscription for weekly senice of a second 60-gallon roll-cart Return for pick-up of inaccessible rollcart Roll-cart senices more than 5 feet from curb When roll-cart is overfilled Per hour. plus disposal. if applicable Non-sufficient funds $12.60 per occurrence ($12.00) $4.85 per occurrence ($4.60) $3.63 per occurrence ($3.45) $6.04 per month ($5.75) $11.50 per occurrence No change $25.00 per occurrence No change $2.30 per occurrence No change $70.00 per hour No change No change No change Tire Disposal Not accepted at curb; See Bulky waste pick-up.
9 COMMERCIAL SERVICE RATES Commercial Standard Rates Size of Garbaae Cart DescripNon Rate (Current Rate in Red} 35-gallon Roll-cart Includes weekly collection of $24.15 per month ($23.00) 60-gallon Roll-cart garbage, recycling collection (60- gallon roll-cart), and glass $37.80 per month ($36.00) 90-gallon Roll-cart collection (14-gallon bin) $ per month ($42.00) Subscription for weekly service of a Recycling Cart Service second 60-gallon roll-cart, per cart, (additional or Recycling-only) per weekly pick-up $9.45 per month ($9.00) Subscription for weekly collection Recycling Container Service of l to 8 yard recycling container, (additional or Recycling-only) per container, per weekly pick-up $42.00 per month ($40.00) Other Commercial Fees Access/Distance Fee Per container; per each 50-feet after first 50-feet; per occurrence $6.00 per occurrence Call-back/Return Service For pick-up of inaccessible container $25.00 per occurrence Over-Capacity Fee When container ~s overfilled $24.00 per estimated yard For containers exceeding Over-Weight Fee maximum weiqht Based on actual disposal cost.. Multi-family Recycling Services Only if using drop box or Fee compactor $2.00 per unit per month Special Services/Bulky Waste Fee Per hour, plus disposal, if applicable $70.00 per hour l Account Reinstatement Fee NSF Check Fee Commercial Container Rates and Services Non-compacted material; Includes weekly recycling and glass collection. (Current Rate in Red) Container Size Number of collection pick-~s_qer week: One Two Three Four Five Six s s s s s s yard ($87.70) ($169.68) ($246.97) ($324.25) ($401.74) ($478.09) s $ s $ s s yard 2-yard 3-yard 4-yard 5-yard ($65.38) ($127.05) ($188.58) ($250.12) ($311.80) ($355.27) $ s s s $ $ ($116.35) ($217.59) ($318.72) ($419.87) ($521.09) ($621.03) $ $ $ s s $ ($89.52) ($174.95) ($260.34) ($345.72) ($431.15) ($491.64) $ s s $ s s ($140.53) ($265.51) ($390.51) ($515.50) ($640.48) ($764.00) $ $ $ $ s s ($133.69) ($222.88) ($332.12) ($441.37) _(_$550.55) ($628.04) $ $ $ $ $ s 1' ($188.72) ($361.40) ($534.01) ($706.62) _(_$879.31) ($1,049.87) $ $ $ $ s s ($161.89) ($318.77) ($475.62) ($632.48) ($789.37) ($900.76) $ $ $ $ $ 1, $ ($236.93) ($457.34) ($677.55) ($897.75) ($1,118.16) ($1, ) $ $ $ $ $ 1, $ 1, ($210.10) ($414.69) ($619.16) ($823.61) {$ ) ($ ) $ $ $ $ l, $ 1, $ 1, ($285.07). ($553.08) ($820.95) ($1,088.81) ($1,356.83) ($1,621.55) $ $ $ $ 1, $ 1, $ 1, ($258.24) ($510.43) ($762.57) ($1,014.67) ($1,266.88) ($1,446.14) 7
10 6-yard $ $ $ 1, $ 1, $ 1, $2, ($333.20) ($648.81) ($964.34) ($1,279.87) ($1,595.49) ($ ) $ $ $ $ 1, $ 1, $ 1, ($306.37) ($606.17) ($905.96) ($1,205.73) ($1,505.55) ($1,718.77) 8-yard $ $ $ 1, $ 1, $ 2, $ 2, ($430.38) ($841.19) ($1,252.03) ($1,662.88) ($2,073.71) ($2,479.78) $ $ $ 1, $ 1, $2, $ 2, ($403.54) ($798.56) ($1' ) ($1, ) ($1 ' ) ($2,264.88) *Each additional applies in situations where containers are adjacent to each other on the same site. Containers separated on a site shall be subject to the full fee. Commercial Compacted Container Rates Rate is 2.25 times the loose container rate (from above chart). Are based on containers from one to four yards, owned and maintained by the customer. The weight per yard shall not exceed 500 pounds. Commercial Organics (Food Scraps) Container Rates Commercial organics rates are available to Beaverton businesses generating food scraps at the subscription quantity. The rate model provides for service at fifty percent of the cost of garbage service. Collected materials are limited to food scraps and non-food items on the city-approved collection list. Contaminated loads will be collected at the standard garbage rate. Container Number of collection pick-ups per week: Size One Two Three Four Five Six 1-yard $ $ $ $ $ $ ($43.85) ($84.84) ($123.49) ($162.13) ($200.87) ($239.05) $ $ $ $ $ $ ($32.69) ($63.53) ($94.29) ($125.06) ($155.90) ($177.64) 1.5-yard $ $ $ $ $ $ ($58.18) ($108.80) ($159.36) ($209.94) ($260.55) ($310.52) $ $ $ $ $ $ ($44.76) ($87.48) ($130.17) ($172.86) ($215.58) ($245.82) 2-yard $ $ $ $ $ $ ($70.27) ($132.76) ($195.26) ($257.75) ($320.24) ($382.00) $ $ $ $ $ $ ($56.85) ($111.44) ($166.06) ($220.69) ($275.28) ($314.02) 3-yard $ $ $ $ $ $ ($94.36) ($180.70) ($267.01) ($353.31) ($439.66) ($524.94) $ $ $ $ $ $ ($80.95) ($159.39) ($237.81) ($316.24) ($394.69) ($450.38) 4-yard $ $ $ $ $ $ ($118.47) ($228.67) ($338.78) ($448.88) ($559.08) ($667.89) $ $ $ $ $ $ ($105.05),($207.35) ($309.58) ($411.81) ($514.11) ($586.76) *Each additional applies in situations where containers are adjacent to each other on the same site. Containers separated on a site shall be subject to the full fee. ' SERVICE NOTES: (1) Due to weight and equipment capacity limitations, business food scrap collection will generally occur in containers 3-yards and less in size. Haulers are not required to provide container service at the 4-yard level but a rate is provided should future equipment capacity enable the larger size. (2) In the initial stages of the Beaverton Composts program, food scrap collection will generally be available only at the "one" time per week collection level. Haulers are not required to provide more frequent service until collection volume and routes enable multiple collection days.
11 Commercial Organics Roll-cart Rates Size of Oraanics Cart Description Rate 35-gallon Roll-cart Weekly service. per food scraps $ per month ($11.50) 60-gallon Roll-cart container $ per month ($18.00) Commercial Organics Drop Box Rates; Actual disposal and fees, PLUS Organics Delivery Fee 30 and 40-yard boxes are not available $ per occurrence (1 0 and 20 yard boxes only) for organics (food scraps) collection Organics Haul Fee due to weight limitations. $ per occurrence (1 0 and 20 yard boxes only) Organics Haul Fee (Compactor) $ per occurrence DROP BOX AND COMPACTORS SERVICE RATES Drop Box Rates: Actual disposal cost and fees, PLUS Size Delivery Fee $65.00 Haul Fee (1 0 and 20-yard boxes) $ Haul Fee (30 and 40-yard boxes) $ Haul Fee (Compactor Service) $ Mileage (If round trip to landfill/transfer station is more than 24 miles.) Actual disposal cost is rate charged at a Metro-approved landfill or transfer station. Fees include the operating margin and franchise fee $1.50 per mile Demurrage Daily., (per day, after 48 hours) Monthly (based on 20 days per month) 10-yard or 20-yard box $ yard box $ yard box $ yard or 20-yard box $ yard box $ yard box $ MEDICAL WASTE Only approved medical waste/sharps containers may be used. No. of containers per pick-up Size of Container 9 20 or or 48 Gallon Gallon Gallon 1 $55.20 $56.95 $ $36.70 $38.20 $39.85 J 3 $30.40 $31.85 $ $26.40 $27.85 $ $24.10 $25.60 $ $22.15 $23.65 $ $20.60 $22.10 $ $19.20 $20.70 $ $18.15 $19.60 $ $18.70 $20.30 $22.10 q
12 11 $17.95 $19.55 $ $17.30 $18.90 $ $16.70 $18.25 $ $16.20 $17.75 $ $15.80 $17.35 $ $15.40 $16.90 $ $15.40 $16.90 $ $15.40 $16.90 $ $15.40 $16.90 $ $15.40 $16.90 $ $15.00 $16.25 $ $15.00 $16.25 $ $15.00 $16.25 $16.55 /0
13 Oregon Refuse and Recycling Association 1739 NW 156th Avenue Beaverton, Oregon (503) (Tel) (503) (Fax) Via September 23, 2015 Mr. Scott Keller, Senior Program Manager City of Beaverton PO Box 4755 Beaverton, OR Re: Rate Review and Status of Recycling Commodity Revenues Dear Scott: I am David White, Regional Representative for the Oregon Refuse and Recycling Association. The Beaverton franchised haulers are members of our association and have requested that I submit this letter on their behalf. The revenues earned by Beaverton haulers from the sale of recyclable materials have historically been used to partially offset the cost of providing service and therefor have helped stabilize the rates paid by customers. Unfortunately, the value of these materials has steadily declined over the last two years. This drop in value has been caused by a number of reasons, many of which are related to the changing world market for the materials. These include: o o o o o A downturn in foreign economies has reduced the demand, especially in China and India. The transportation cost to these foreign destinations has greatly increased because the materials cannot be shipped from Portland and are being hauled to Tacoma for export. The drop in energy prices for both crude oil and natural gas has reduced the demand for recycled materials. The commingled material mix has changed, resulting in higher processing costs and reduced throughput. In addition, the commingled material mix contains much less of the valuable newsprint due to reduced Oregonian delivery and more of the materials with negative value, such as glass and processing residual that is sent to disposal. The experts are telling us that this trend will not be changing any time in the near future. 1/
14 Letter to Scott Keller Rate Review and Recycling Commodity Revenues September 23, 2015 Page 2 The Beaverton haulers are requesting a rate adjustment per Beaverton Code (Uniform Rate Setting) to address this revenue shortfall and bring franchise operating margins into compliance with Beaverton City Code. Thank you, David White, ORRA Regional Representative Keith Eldien, Aloha Garbage Company Jeff Garbarino, Garbarino Disposal Service Mike Jefferies, Waste Management Mike Leichner, Pride Disposal Company John Romero, West Slope Garbage Jeff Walker, Walker Garbage Service /2
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