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1 ITEM 4.4 CITY MANAGEIt' S REPOItT 7uly 18, 21f CITY COUIVCIL MEETING ITEM: ADJII TMENT TO THE REPUBLIC SERVICES SOLID VVA TE COLLECTION It TES FO t FISCAL YEA t 21C- 217 RECOP 1lVIEIVD TION: 4dopt Resolution to Authorize an Increase to Republic Services Collection Rates for Fisc Year Based on ' the Gonsumer Price Index for 111 Urban Consumers SU M I IARY Lathrop Municip Code Section and Section 26 of the Agreement between the City of Lathrop and Lathrop Sunrise Sanitation (Agreement), now.doing business as Republic Services, provide the City Council shl determine the maximum solid waste collection rates. Section 26 of the Agreement so provides collection rates shl be reviewed annuly and any adjustment to the maximum solid waste collection rates is to be based on the Consumer Price Index for All Urban Consumers ( CPI- U) for the San Francisco- Oakland- San Jose, Cifornia area, not to exceed 4. %. On May 25, 216, staff received a request from Republic Services to adjust their commerci and residenti rates. The proposed 2. 7% increase is based on the annu CPI- U percentage change over the last year, ending increase would apply to l customer classes effective on August 1, Senior Citizen rates which are to remain unchanged. April 1, 216. The 216 except the AC ICG It U Rl D: On October 21, 23, City Council approved an Agreement between the City of Lathrop and Lathrop Sunrise Sanitation (Agreement), now doing business as Republic Services; to provide the necessary collection, transportation and dispos of solid waste generated within the City limit and for compliance with the source reduction and recycling elements of the City' s Waste Management Plan. On June 2, 29, City Council approved Amendment No. 1 Republic Services extending the contract term for an addition 5 years. to the Agreement with On June 2, 214 City Council approved Amendment No. 2 to the Agreement with Republic Services to continue to provide the necessary collection, transportation and dispos of solid waste generated within the City limit for an addition 5 years. Lathrop Municip Code Section and Section 26 of the Agreement provide the City Council shl determine the maximum solid waste collection rates.
2 PAGE 2 CITY MANAGER' S REPORT July 18, 216 CITY COUNCIL MEETING REPUBLIC SERVICES CPI- U ADJUSTMENT FOR FY Section 26 of the Agreement so provides collection rates shl be reviewed annuly and any adjustment to the maximum solid waste collection rates is to be based the Consumer Price Index for All Urban Consumers ( CPI- U) on for the San Francisco- Oakland- San Jose, Cifornia area, not to exceed 4. %. The previous commerci and residenti rate increases approved by City Council were as follows: r % % + $ % no increase for Senior Rates) % no increase for Senior Rates) % % On. 36 ( Senior Rates only increased by $. 36) no increase for Senior Rates) 25, 216, staff received a request from Republic Services to adjust their May commerci and residenti rates the period of April 1, based on 215 through April 1, the increase of the CPI- U. The CPI- U for 216 increased 2. 7%. During previous rate increase requests the Mayor of the City of Lathrop has that requested unchanged. previous classes remain the solid At this time standing effective on unchanged. request August waste collection Republic Services and 1, is rates has for Senior agreed to Citizens remain honor the Mayor' s requesting a 2. 7% increase for l customer 216 except the Senior Citizen rates which are to
3 PAGE 3 CITY MANAGER' S REPORT 7uly 18, 216 CITY COUNCIL MEETING REPUBLIC SERVICES CPI- U AD] USTMENT FOR FY The maximum lowable rate request is as follows: STANDARD RESIDENTIAL RATES: Sml - 3 Medium Lar e SENIOR RESIDENTIAL R.4TES: Sml Medium Lar e MOBILE HOME/ TRAILER PARK RATES; t; Sml Medium - Lar e SENIOR MOBILE HOME/ TRAILER PARK RATES: Sml - 3 Medium - Lar e
4 PAGE 4 CITY MANAGER' S REPORT uly 18, 216 CITY COUNCIL MEETING REPUBLIC SERVICES CPI- U ADJUSTMENT FOR FY CURRENT RATES: COMMERCIAL RATES - h, r a y' I 1 Cu. Yd $ $ $ $ $ Ibs. 2 Cu. Yd $ $ $ $ Z $ Ibs. 3 Cu. Yd $ $ $ $ $ Ibs. 4 Cu. Yd $ $ $ $ $ Ibs. 5 Cu. Yd $ $ $ $ $ Ibs. 6 Cu. Yd $ $ $ $ $ Ibs. L. Cart $ COMMERCIAL RATES - PROPOSED RATES: $ $ $ $ $ $ $ Ibs. $ $ $ $ Ibs. $ $ $ Ibs. $ $ $ $ Ibs. $ $ $ 894. G1 $ Cu. Yd $ Cu. Yd $ Cu. Yd $ $ Cu. Yd $ Cu. Yd $ $ Cart $ Cu. Yd L. $ 1, Ibs. 65 Ibs. Weights in excess of these maximum amounts per bin per pick up will be charged an addition $ 8. per extra 1 pounds. COUNCIL GOALS ADVANCED BY THIS AGENDA ITEM: This agenda item promotes Public Safetv by maintaining contract requirements for solid waste management within the City of Lathrop. FISCAL IMPACT: Pursuant to Section 27 of the Agreement between the City of Lathrop and Lathrop now doing business as Republic Services, and LMC Ordinance , Republic Services shl remit to the City of Lathrop a Franchise Fee of seven ( 7%) percent and a AB939 Recycling Fee of three ( 3%) percent of the gross revenue collected within ten ( 1) days following the completion of each cendar Sunrise Sanitation, month.
5 CITY MAN 4GEIt' S REPOR7' P age 5 July 18, 216 CITI COUIVCIL MEETIfVG FaEPUBLIC SERVICES CPI- lj D) lustmerit FOIZ FY TTAC H fw E IVT: A. Resolution Authorizing an Increase of the Republic Services Collection Rates Based on the Consumer Price Index for All Urban Consumers for the San Francisco- Oakland- San Jose Area for Fisc Year B. Letter from Republic Services
6 CITY MANAGER' S REPORT PAGE 5 7uly 18, 216 CITY COUNCIL MEETING REPUBLIC SERVICES CPI- U ADJUSTMENT FOR FY APPROVALS: ic Dameon Flores Assistant Engineer Date Tim McCoy Director of Public Works Date Cari Jam Director Finance Date 3 / Svador Navarrete City Attorney Date 7 - z- 6 Stephen J. Svatore City Manager Date I3 1,
7 RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP AUTHORIZING AN INCREASE OF THE REPUBLIC SERVICES COLLECTION RATES, EXCEPTING SENIOR CITIZEN RATES, BASED ON THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR THE SAN FRANCISCO- OAKLAND- SAN JOSE AREA FOR FISCAL YEAR WHER AS, On October 21, 23, City Council approved an Agreement between the City of Lathrop and Lathrop Sunrise Sanitation ( Agreement), now doing business as Republic Services, to provide the necessary collection, transportation and dispos of solid waste generated within the City limit and for compliance with the source reduction and recycling elements of the City' s Waste Management Plan; and WHEREAS, On June 2, 29,, City Council approved Amendment No. 1 to the Agreement with Republic Services extending the contract term for an addition 5 years; and WHEREAS, on June 2, 214 City Council approved Amendment No. 2 to the Agreement with Republic Services to continue to provide the necessary collection, transportation and dispos of solid waste generated within the City limit for an addition 5 years; and WHEREAS, Lathrop Municip Code Section and Section 26 of the origin Agreement provide the City Council shl determine tfie maximum solid waste collection rates; and WHEREAS, Section 26 of the Agreement so provides collection rates shl be reviewed annuly and any adjustment to the maximum solid waste collection rates is to be based on the Consumer Price Index for All Urban Consumers ( CPI- U) for the San Francisco- Oakland- San Jose, Cifornia area, not to exceed 4. %; and WHEREAS, the last rate increase approved by City Council was for fisc year where commerci and residenti rates were increased by 2. 3% effective September 1, 215; and 1NHEREAS, on May 25, 216, staff received a request from Republic Services to adjust their commerci and residenti rates pursuant to Section 26 of the Agreement; and WHEREAS, the change in the CPI- U for the period of April 1, April 1, 216 was 2. 7%; and 215 through WHEREAS, the 2. 7% rate increase shl take effect on August 1, 216 for l customer classes excepting Senior Citizen rates which are to remain unchanged; and.
8 WHEREAS, pursuant to Section 27 of the Agreement between the City of Lathrop and Republic Services and LMC Ordinance , Republic Services shl remit to the City of Lathrop a Franchise Fee of seven ( 7%) percent and a A6939 within ten ( 1) Fee of three ( 3%) percent of the gross revenue collected Recycling days following the completion of each cendar month; NOW, THEREFORE, BE IT RESOLVED, that to the extent that the solid waste hauler gives notice pursuant to Section 26 of the Agreement, and pursuant to Lathrop Municip Code Section C, the City' s franchised solid waste hauler shl not be permitted to charge fees any higher than specified for each customer type listed: STANDARD RESIDENTIAL RATES: a, um u W t, _. d. y; Sml 3 Medium 6 Lar e SENIOR RESIDENTIAL RATES: Sml 3 Medium 6 Lar e MOBILE HOME/ TRAILER PARK RATES: s Sml 3 Medium 6 Lar e 9 a., z., :._ < SENIOR MOBILE HOME/ TRAILER PARK RATES: fr. a. b 1 i a IW Medium 6 Lar e 9. gy'r A L'b., Sml 3 p1sy W t a df l"s x
9 COMMERCIAL RATES - PROPOSED RATES: R n. e r A 1 Cu. Yd $ $ 1' $ $ $ Ibs. 2 Cu. Yd $ $ $ $ $ Ibs. 3 Cu. Yd $ $ $292.2 $ $ Ibs. 4 Cu. Yd $ $ $ $ $ Ibs. 5 Cu. Yd $ $ $ $ $ Ibs. 6 Cu. Yd $ $ $ $ $ 1, Ibs. L. Cart $ Weights in excess of these maximum amounts per bin per pick up will be charged an addition $8. per extra 1 pounds.
10 The foregoing resolution was passed and adopted this 18th day of July, 216, by the following vote of the City Council, to wit: AYES: NOES: ABSENT: ABSTAIN: Sonny Dhiw, Mayor ATTEST: APPROVED AS TO FORM: Teresa Vargas, City Clerk Svador Navarrete, City Attorney
11 8( 1145 West Charter Way Stockton, CA 9526 H SERVICES o f republicservices. com May 25, 216 Dameon Flores City of Lathrop 39 Towne Centre Dr. Lathrop, CA 9533 Dear Mr. Flores, Pursuant to Section 26 of the " Agreement Between the City of Lathrop and Lathrop Sunrise Sanitation Corporation" the collection rates shl be reviewed annuly during the month of May and adjusted effective July 1. The agreement lows for an adjustment based on the prior year change in the Consumer Price Index for the San Francisco- Oakland- San Jose, l urban consumer as published by the United States Department of Labor, Bureau of Labor Statistics. The change in the CPI for the period February 1, 215 through February 1, 216 was 3%. Attached please find the proposed new collection rates effective July 1, 216. Thank you for the continued confidence in Republic Services of Lathrop, as ways we will continue to strive to provide profession solid waste services. Should you have any questions, please do not hesitate to cl me at( 29) Sincerely, Republic Ser ' s of Lathrop Kevin Basso Enclosure
12 REPUBL C 45 west Charter way Stockton, CA 9526 o f SERVICES Lathrop republicservices.com Sunrise Sanitation Rates Effective 7/ 1 / 16 ( PROPOSED) 1/ WK 2/ WK 3/ WK 4/ WK S/ WK 1 YD YD YD YD YD , YD '. LG. CART Residenti Service Weekly Recycling and Green Waste STANDARD SENIOR MHP/ TRAILER MHP SENIOR SMALL MEDIUM LARGE Max Wt/ Lbs
13 REPUBLIC 1145 West Charter Way Stockton, CA 9526 SERVICES o f republicservices.com Due to our billing cycles, we are unable to provide a sample copy of our uly invoice. Below is the verbiage that will be used in regards to the annu rate adjustment: OUR AGREEMENT WITH CITY OF LATHROP ALLOWS FOR AN ADJUSTMENT BASED ON THE PRIOR YEAR' S CHANGE IN THE CONSUMER PRICE INDEX. YOUR JULY 1 INVOICE WILL REFLECT A SLIGHT INCREASE OF 3% TO CORRESPOND WITH THE CONSUMER PRICE INDEX LAST YEAR. PLEASE CONTACT OUR OFFICE WITH ANY QUESTIONS. THANK YOU. Thank you, Molly Gomez
14
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