HomeMy WebLinkAbout2018-05-22 - AGENDA REPORTS - WASTE HAULERS ANNUAL RATE ADJUST (2)Agenda Item: 13
CITY OF SANTA CLARITA
' AGENDA REPORT
CONSENT CALENDAR
t,
CITY MANAGER APPROVAL: �1
DATE: May 22, 2018
SUBJECT: FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council:
Adopt a resolution approving the Seventh Amendment to the Amended and Restated
Agreement between the City of Santa Clarita and USA Waste of California, Inc. (DBA
Waste Management) for residential solid waste management services, allowing an
adjustment in their special services and multi -family residential rates by 6.19 percent, based
on the formula outlined in their Residential Franchise Agreement and single-family
residential standard service rates based on Section 6.5.2, Santa Clarita Valley Rate Cap, as
outlined in the Residential Franchise Agreement, subject to City Attorney approval.
2. Adopt a resolution approving the Sixth Amendment to the Amended and Restated Agreement
between the City of Santa Clarita and Burrtec Waste Industries, Inc. for commercial solid
waste management services, allowing an adjustment in solid waste rates by 5.23 percent,
based on the formula outlined in their Commercial Franchise Agreement and an adjustment
to organic waste rates by 9.01 percent, subject to City Attorney approval.
BACKGROUND
In November 2003, the City Council selected USA Waste of California, Inc. (Waste
Management) as the exclusive solid waste hauler for residential services and Burrtec Waste
Industries, Inc. (Burrtec) for commercial services. Pursuant to Section 6.3 of their respective
agreements, Waste Management and Burrtec may request rate adjustments for their next rate
year, July 1, 2018, through June 30, 2019. They must submit a request for the adjustment by
April 1, 2018, and follow the specific guidelines for a rate adjustment as outlined in the
Franchise Agreements. Per Section 6.3 of the Franchise Agreements, "Adjustments to the
maximum rates are subject to the approval of the City Council at a publicly noticed City Council
meeting, although the City Council's discretion shall be limited to determining, based on
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substantial evidence, whether the requested maximum rate adjustment meets the requirements as
set forth herein."
On May 24, 2011, the City of Santa Clarita (City) negotiated additional residential and
commercial diversion programs to be added to the Franchise Agreements. The diversion
programs included a Super Saver Program, which provides a financial incentive for increased
recycling and use of smaller waste carts, small recycling carts for businesses lacking space for
full-size bins, and litter/abandoned item abatement from the public right-of-way.
Waste Management - Single Family Residence Waste Services
The City's review of Waste Management's proposed rate adjustment determined a 1.72 percent
increase is in line with the methodology outlined in the Franchise Agreement due to corrections
in rounding. Waste Management had originally proposed a 1.71 percent adjustment. This
adjustment is based on price indexes, which include labor, fuel, equipment, and disposal.
The methodology was only one of three parts to the requested adjustment. Of the 6.50 percent
Waste Management requested for rate year 2018-2019, 1.97 percent is a carry forward from the
prior rate years 2015-2018, in accordance with Section 6.5.1 in the Amended and Restated
Agreement between the City of Santa Clarita and USA Waste of California, Inc. (Waste
Management Agreement). The final component to the 6.50 percent was a pass-through
extraordinary rate adjustment to compensate for local disposal cost increases. That component
was calculated to be at 2.81 percent. This pass-through rate adjustment is allowed per the Waste
Management Agreement section 6.4.4.
Waste Management - Single Family Residence Waste Services
Standard Rate Methodology 2018-19 1.72%
Cumulative Carryover Adjustment for Residential Cart Service from 2015-18 1.97%
Extraordinary Adjustment for Changes in MSW Disposal Costs 2.81%
Total Proposed Adjustment for Residential Cart Service*: 6.50%
*subject to the limitations of Agreement Article 6.5.2
With the approval of the proposed rate change, the new single-family monthly rate would
increase by $1.48 to $24.19 from the current rate of $22.71, effective July 1, 2018. However,
according to Section 6.5.2 of the Franchise Agreement, the maximum rates for standard
residential services shall remain below all incorporated jurisdictions, including unincorporated
Los Angeles County (County), with source separated franchised collection services in the Santa
Clarita Valley.
Currently, the standard single-family service rate for unincorporated areas in the Santa Clarita
Valley is $22.72 for the rate year 2017-2018. At this time, staff does not have the proposed 2018-
2019 service rates for the County. Therefore, the rate will remain at $22.71 based on the current
rate year 2017-2018 standard single-family service rate for the City, in accordance with Section
6.5.2 of the Franchise Agreement. Once the County rate is verified for rate year 2018-2019, the
City residential service rate will be adjusted in accordance with the Franchise Agreement. The
final adjusted rates will not be made until the new County rates take effect, and in accordance
with 5. 1.1 of the Franchise Agreement, after residential customers are notified 30 days prior to
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the adjustment.
Waste Management - Multi -Family Residence Waste Services
The City's review of Waste Management's proposed rate adjustment determined a 1.72 percent
increase is in line with the methodology outlined in the Franchise Agreement due to corrections
in rounding. Waste Management had originally proposed a 1.71 percent adjustment. As with
single family rates, an additional component to the request for multi -family rates was a pass-
through extraordinary rate adjustment to compensate for local disposal cost increases. That
component was calculated to be at 4.47 percent. This pass-through rate adjustment is allowed per
the Waste Management Agreement section 6.4.4. The total adjustment calculation for multi-
family residents will be requested at 6.19 percent. Attached is a summary of the Method of
Adjustment for Waste Management for this annual rate adjustment described in Section 6.4 of
the Franchise Agreement.
Waste Management - Multi Family Residences
Standard Rate Methodology 2018-19 1.72%
Extraordinary Adjustment for Changes in MSW Disposal Costs 4.47%
Total Proposed Adjustment for Multi -Family Residential Bin Service 6.19%
Burrtec - Commercial Services
The City's review of Burrtec's proposed rate adjustment determined a 1.81 percent increase is in
line with the methodology outlined in the Franchise Agreement. The second component to the
proposed adjustment is a pass-through extraordinary rate adjustment to compensate for local
disposal cost increases. That component was calculated to be at 3.42 percent and is allowed per
the Burrtec Agreement section 6.6.1. This new rate would be effective July 1, 2018. With the
approval of the proposed rate change, the new rate for a three -cubic -yard bin, serviced once a
week, will increase from the current rate of $82.69 to $87.01 per month. Attached is a summary
of the Method of Adjustment for Burrtec for this annual rate adjustment described in Section 6.4
of the Franchise Agreement.
Burrtec Commercial Services
Standard Rate Methodology 2018-19 1.81%
Extraordinary Adjustment for Changes in MSW Disposal Costs 3.42%
Total Proposed Adjustment for Commercial Service 5.23%
Burrtec - Organic Waste Services
In October 2014, Governor Jerry Brown signed Assembly Bill (AB) 1826, encouraging
businesses to recycle their organic waste beginning April 1, 2016, depending on the amount of
waste generated per week. Organic waste, also referred to as organics, is food waste, green
waste, landscape and pruning waste, non -hazardous wood waste, and food -soiled paper waste
that is mixed in with food waste. This law phases in the recycling of commercial organics over
time. Reducing the amount of organic materials sent to landfills and increasing the production of
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compost and mulch are part of the AB 32 (California Global Warming Solutions Act of 2006)
Scoping Plan.
On May 24, 2016, the City Council approved a voluntary program regarding commercial organic
waste. The program set forth rates separate from the traditional waste services as special
processing is required. Staff requests the City Council consider approving the 9.01 percent
adjustment to organic waste rates requested by Burrtec. Businesses can choose to divert their
organic waste in any number of ways, including recycling organic waste through Burrtec, selling
the organic waste to a third -party hauler, donating their food to food banks/food rescues, back
hauling organic waste to a processing facility, composting on site, or donating the food waste for
livestock feed. The City and Burrtec have provided outreach and education to businesses about
AB 1826. Staff will also review the program each year and provide data to California
Department of Resources Recycling and Recovery, as required by the statute.
Burrtec's services run six days per week for trash, green waste, and recycling. The rate sheet (see
rate sheet in Burrtec Resolution) in the Amendment shows only Monday through Saturday
service, as no commercial customers require Sunday services at this time.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
None by this action.
ATTACHMENTS
Waste Management Resolution - Seventh Amendment
Waste Management Methodology
Burrtec Resolution - Sixth Amendment
Burrtec Methodology
Waste Management Request (available in the City Clerk's Reading File)
Burrtec Request (available in the City Clerk's Reading File)
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13.a
RESOLUTION 18-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, APPROVING THE SEVENTH
AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT
BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE
OF CALIFORNIA, INC. (WASTE MANAGEMENT), FOR
RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES
WHEREAS, the City of Santa Clarita (City) is empowered under Section 7 of Article 11
of the California Constitution to make and enforce, within its limits, all police and sanitary
ordinances and regulations not in conflict with general laws; and
WHEREAS, in partial implementation of Section 7 of Article 11 of the California
Constitution, California Public Resources Code Section 40059 authorizes the City to determine
all aspects of handling of solid waste that are of local concern, including the frequency of
collection, means of collection and transportation, level of services and nature, location, and
extent of waste handling services; and
WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc. (Waste
Management), entered into that certain "Agreement Between the City of Santa Clarita and USA
Waste of California, Inc., for Residential Solid Waste Management Services" (Agreement); and
WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended
and Restated Agreement Between the City of Santa Clarita and USA Waste of California Inc.;
and
WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement Between
the City of Santa Clarita and USA Waste of California, Inc., Waste Management is entitled to
pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2018
to June 30, 2019; and
WHEREAS, the City and Waste Management desire to amend the Amended and
Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., by
increasing the maximum rates as outlined in Sections 6.3 and 6.4 of the Amended and Restated
Agreement Between the City of Santa Clarita and USA Waste of California, Inc.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve
as follows:
SECTION 1. The "Seventh Amendment of the Amended and Restated Agreement
Between the City of Santa Clarita and USA Waste of California, Inc., for Residential Solid
Waste Management Services" (Seventh Amendment), a copy of which is attached hereto, is
hereby approved. The City Manager is authorized to execute the Seventh Amendment on behalf
of the City.
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SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 22nd day of May 2018
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution No. 18- was duly adopted by the City Council of the City of Santa
Clarita at a regular meeting thereof, held on the 22nd day of May 2018, by the following vote:
AYES: COUNCIL,MEMBERS:
NOES: COUNCIL,MEMBERS:
ABSENT: COUNCIL,MEMBERS:
2
CITY CLERK
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SEVENTH AMENDMENT OF THE AMENDED AND
RESTATED AGREEMENT BETWEEN THE CITY OF
SANTA CLARITA AND USA WASTE OF CALIFORNIA,
INC., (WASTE MANAGEMENT) FOR RESIDENTIAL
SOLID WASTE MANAGEMENT SERVICES
This SEVENTH AMENDMENT OF THE AMENDED AND RESTATED
AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF
CALIFORNIA, INC., (WASTE MANAGEMENT) FOR RESIDENTIAL SOLID WASTE
MANAGEMENT SERVICES, (Seventh Amendment) is entered into this day
of 2018, between the City of Santa Clarita (City), California, a California
municipal corporation and USA Waste of California, Inc., a California corporation to amend
that certain "Amended and Restated Agreement Between the City of Santa Clarita and USA
Waste of California, Inc., for Residential Solid Waste Management Services."
RECITALS
WHEREAS, the City is empowered under Section 7 of Article 11 of the California
Constitution to make and enforce, within its limits, all police and sanitary ordinances and
regulations not in conflict with general laws; and
WHEREAS, in partial implementation of Section 7 of Article 11 of the California
Constitution, California Public Resources Code Section 40059 authorizes the City to determine
all aspects of handling of solid waste that are of local concern, including the frequency of
collection, means of collection and transportation, level of services and nature, location, and
extent of waste handling services; and
WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc.,
(Waste Management) entered into that certain "Agreement Between the City of Santa Clarita
and USA Waste of California, Inc., (Waste Management) for Residential Solid Waste
Management Services"; and
WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended
and Restated Agreement Between the City of Santa Clarita and USA Waste of California
Inc.(Waste Management); and
WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Waste
Management is entitled to pursue an annual adjustment to its maximum rates for the rate year
commencing on July 1, 2018; and
WHEREAS, the City and Waste Management desire to amend the Amended and
Restated Agreement by adjusting the maximum rates as outlined in Section 6.3 and 6.4 of the
Amended and Restated Agreement.
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NOW, THEREFORE, the City and Waste Management in consideration of their
mutual promises, amend the Amended and Restated Agreement as follows:
SECTION 1. Exhibit 2 of the Amended and Restated Agreement shall be
amended to contain the following maximum rates commencing July 1, 2018:
• Standard Service Rate $--.-- per month
• Reduced Rate for no Greenwaste services $--.-- per month
• Reduced Rate for Super Saver/Senior/Lifeline Customers--.-- per month
• Mobile Home Service Rate $--.-- per month
The multi -family rates will be as follows:
Container
Size
Costs
Street Litter Carts
$21.80 per set per month
Number of Weekly
$22.18
Refuse Overage Extra Pickup
1 2 3 4 5 6
7
1.5 yd
$74.15
$148.30
$222.47
$296.58
$370.74
$444.89
$519.05
2 yd
$79.05
$158.06
$237.09
$316.16
$395.16
$474.19
$553.23
3 yd
$88.81
$177.56
$266.40
$355.19
$443.97
$532.79
$621.57
4 yd
1 $98.531
$197.14 1
$295.66
1 $394.21 1
$492.77
1 $591.36 1
$689.90
Special Services
Costs
Street Litter Carts
$21.80 per set per month
Restart Charge
$22.18
Refuse Overage Extra Pickup
$7.41 per pickup
Extra Trash Cart
$14.78 month
Locking Bin
$14.79 per bin per month
Bulk Billing Discount
8%
Extra Bulky Item Pickup
$29.60 per pickup
Additional Bin Cleanings
$51.76 per cleaning
Extra Bin Empties
$51.76 per empty
Compactor Rates
2x comparable bin rate
Late Fees
1.5% per month
Emergency Services
$103.57per hour
Manure Collection
100% of comparable multifamily bin refuse rate
Prepayment Discount
One month free with 11 months prepaid
SECTION 2. Except as expressly amended herein, all provisions of the Amended and
Restated Agreement are and remain in full force and effect.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
CITY OF SANTA CLARITA
A California Municipal Corporation
Kenneth W. Striplin
City Manager
ATTEST:
Mary Cusick
City Clerk
APPROVED AS TO FORM:
Joseph Montes
City Attorney
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WASTE MANAGEMENT
[CEO, President, Chairman of the Board or
any Vice President]
And By:
[The Secretary, any assistant secretary, CFO
or any assistant treasurer]
State of California
County of
On before me, ,
Date Here Insert Name and Title ofthe Officer
Place Notary Seal Above
Name(s) of Signer(s)
who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and
acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
WITNESS my hand and official seal.
Signature
0
Signature of Notary Republic
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13.c
RESOLUTION 18-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, ADOPTING THE SIXTH AMENDMENT
OF THE AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY
OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC. (BURRTEC),
FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES
WHEREAS, the City of Santa Clarita (City) is empowered under Section 7 of Article 11
of the California Constitution to make and enforce, within its limits, all police and sanitary
ordinances and regulations not in conflict with general laws; and
WHEREAS, in partial implementation of Section 7 of Article 11 of the California
Constitution, California Public Resources Code Section 40059 authorizes the City to determine
all aspects of handling of solid waste that are of local concern, including the frequency of
collection, means of collection and transportation, level of services and nature, location, and
extent of waste handling services; and
WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries, Inc.
(Burrtec), entered into that certain "Agreement Between the City of Santa Clarita and Burrtec
Waste Industries, Inc., for Commercial Solid Waste Management Services"; and
WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended
and Restated Agreement with Burrtec; and
WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Burrtec is
entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on
July 1, 2018, to June 30, 2019; and
WHEREAS, AB 1826 requires that jurisdictions implement an organics recycling
program for businesses, that includes education, outreach, and monitoring activities and
reporting annually to CalRecycle; and
WHEREAS, the City and Burrtec desire to amend the Amended and Restated Agreement
by increasing the maximum rates as outlined in Sections 6.3 and 6.4 of the Agreement Between
the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste
Management Services.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve
as follows:
SECTION 1. The "Sixth Amendment of the Amended and Restated Agreement Between
the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste
Management Services" (Sixth Amendment), a copy of which is attached hereto is hereby
Packet Pg. 140
approved. The City Manager is authorized to execute the Sixth Amendment on behalf of the
City.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 22nd day of May 2018.
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution No. 18- was duly adopted by the City Council of the City of Santa
Clarita at a regular meeting thereof, held on the 22nd day of May 2018, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
2
CITY CLERK
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SIXTH AMENDMENT OF THE AMENDED AND RESTATED
AGREEMENT BETWEEN THE CITY OF SANTA CLARITA
AND BURRTEC WASTE INDUSTRIES, INC., FOR
COMMERCIAL SOLID WASTE MANAGEMENT SERVICES
This SIXTH AMENDMENT OF THE AMENDED AND RESTATED
AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE
INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT
SERVICES, (Sixth Amendment) is entered into this day of 2018,
between the City of Santa Clarita, California (City) , a California municipal corporation and
Burrtec Waste Industries Inc. (Burrtec), a California corporation, to amend that certain
"Amended and Restated Agreement Between the City of Santa Clarita and Burrtec Waste
Industries, Inc., for Commercial Solid Waste Management Services."
RECITALS
WHEREAS, the City is empowered under Section 7 of Article 11 of the California
Constitution to make and enforce, within its limits, all police and sanitary ordinances and
regulations not in conflict with general laws; and
WHEREAS, in partial implementation of Section 7 of Article 11 of the California
Constitution, California Public Resources Code Section 40059 authorizes the City to determine
all aspects of handling of solid waste that are of local concern, including the frequency of
collection, means of collection and transportation, level of services and nature, location, and
extent of waste handling services; and
WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries, Inc.
entered into that certain "Agreement Between the City of Santa Clarita and Burrtec Waste
Industries, Inc., for Commercial Solid Waste Management Services"; and
WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended
and Restated Agreement with Burrtec; and
WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Burrtec
is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing
on July 1, 2018; and
WHEREAS, AB 1826 requires that jurisdictions implement an organics recycling
program for businesses, that includes education, outreach, and monitoring activities and
reporting annually to CalRecycle; and
WHEREAS, the City and Burrtec desire to amend the Amended and Restated
Agreement by adjusting the maximum rates as outlined in Section 6.3 and 6.6 of the Amended
and Restated Agreement.
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NOW, THEREFORE, the City and Burrtec in consideration of their mutual promises,
amend the Amended and Restated Agreement as follows:
SECTION 1. Amend Section 6.2 to read as follows.
6.2 Maximum Rates
The rates Company bills to customers shall not exceed the Maximum Rates set forth in
Exhibit 2.
Maximum Rates shall be retitled as "Maximum Rates" and shall be amended to contain the
following maximum rates commencing July 1, 2018:
Container
Number of Weekly Pick u s
Size
1
2
3
4
5
6
32 -gal Cart
$48.88
$88.02
$146.68
$195.56
$244.48
$293.38
90 -gal Cart
$54.69
$98.43
$164.05
$218.75
$273.46
$328.15
1.5 yd
$76.47
$149.11
$221.76
$293.63
$365.47
$437.38
2 yd
$79.56
$155.14
$230.72
$305.55
$380.30
$455.11
3 yd
$87.01
$169.65
$252.32
.$334.14
$415.90
$497.73
4 yd
$109.32
$213.21
$317.07
$419.84
$522.62
$625.38
6 yd
$139.84
$272.64
$405.49
$536.90
$668.33
$799.77
Container
Number of WeeklyGreen Waste Pickups
Size
1
2
3
1 4
1 5
6
3 yd
$65.26
$127.24
$189.25
1 $250.61
1 $311.92
$373.29
Container
Number of WeeklyOr
anic Waste Pickups
Size
1
2
3
4
5
6
65 -gal Cart
$107.81
$200.51
$323.52
$431.34
$539.20
$647.06
1.5 yd
$180.24
$354.49
$528.80
$701.90
$874.94
$1,048.03
2 yd3
$207.40
1 $408.81
1 $610.27
1 $810.55
1 $1,010.74
1 $1,211.00
Special Services
Costs
Locking Bin
$13.49 per bin per month
Commercial Bulky Item Pickup
$26.98 per item
Additional Bin Cleanings
$47.23 per cleaning
Extra Bin Empties
$47.23 per bin
Extra Trash Cart Empties
$33.42 per barrel
Compactor Rates
2x comparable bin rate
4
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Late Fees
1.5% per month
Emergency Services
$93.42 per hour
SECTION 2. Except as expressly modified in this Sixth Amendment, all other
provisions of the Agreement are and remain in effect.
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.
CITY OF SANTA CLARITA
A California Municipal Corporation
Kenneth W. Striplin
City Manager
ATTEST:
Mary Cusick
City Clerk
APPROVED AS TO FORM:
Joseph Montes
City Attorney
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By:
[CEO, President, Chairman of the Board or any Vice
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or any assistant treasurer]
State of California )
County of )
On before me, ,
Date Here Insert Name and Title ofthe Officer
Name(s) of Signers)
Place Notary Seal Above
who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State
of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
Signature of Notary Republic
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WASTE MANAGEMENT
March 30, 2018
Mr. Darin Seegmiller, Environmental Services Manager
City of Santa Clarita
23290 Valencia Boulevard
Santa Clarita, CA 91355
RE: 2018/19 Rate Adjustment Review
Dear Mr. Seegmiller:
In accordance with Article 6.3 of the Amended and Restated Agreement (Agreement) between the City
of Santa Clarita (City) and Waste Management (WM), we respectfully request an annual adjustment of
service rates.
Additionally, WM requests an extraordinary adjustment of service rates due to a change in the tipping
fees for refuse disposal as provided for in Article 6.4.4 of the Agreement.
Refuse Disposal
Currently, refuse collected from Santa Clarita residents and multifamily customers is disposed of at
Chiquita Canyon Landfill. On August 1, 2017, we were notified the per ton disposal rate at this facility
would be increasing by $7.03, beginning September 1, 2017.
While WM makes every effort to minimize the impact of cost changes incurred during any one operating
year, we are unable to absorb these significant increases within the current approved rates. As such, we
respectfully request an extraordinary adjustment of 2.81% for residential service rates and 4.47% for
multifamily and special service rates to account for these significant changes in costs. Supporting
calculations, as required by Article 6.4.4, are included in Attachment B for your review.
Summary of Adjustments Requested:
Residential Adjustments
Cumulative Carryover Adjustment for Residential Cart Service from 2015-18: 1.97%
Calculated 2018/19 Adjustment for Residential Cart Service: 1.71%
Extraordinary Adjustment for Changes in MSW Disposal Costs: 2.81%
Total Proposed Adjustment for Residential Cart Service: (subject to the limitations of 6.49%
Agreement Article 6.5.2)
Multifamily & Special Services Adjustments
Calculated 2018/19 Adjustment for Multi -Family Rates and Special Services: 1.71%
Extraordinary Adjustment for Changes in MSW Disposal Costs: 4.47%
Total Proposed Adjustment for Multifamily & Special Services: 6.18%
Also, as the City's sustainability partner, we would like to share our response to changes in the recycling
industry:
Preserving Santa Clarita's Residential Recycling Program
An Update on the State of the Recycling Industry
Since the start of the current agreement, single stream recycling collection has been a part of WM's
scope of service. While this has been a successful partnership, benefitting Santa Clarita's environment
and compliance with state law, recent unprecedented financial and regulatory changes are threatening
the future of the industry worldwide.
During the latter part of the last decade, the number of curbside recycling programs increased across
the country as local and state governments adopted new environmental policies aimed at reducing the
amount of waste sent to landfills and incinerators. At the same time, Chinese manufacturers continued
to purchase greater and greater tons of U.S. recyclables and scrap materials to meet both foreign and
domestic demands for finished goods.
While the sale of these additional recyclables benefitted America's ongoing trade deficit with China, it
created an overreliance across the industry on one foreign buyer taking recyclables indefinitely and set
an unsustainable standard for materials quality that resulted in exported recyclables containing a
significant about of solid waste (or trash).
The confluence of these industry changes finally came to a head in July 2017, when the People's
Republic of China (PRC) notified the World Trade Organization of its intent to ban the import of twenty-
four types of scrap materials and severely restrict all others starting in 2018 to support its domestic
material sources and reinforce its own environmental policies. In short—China is being far more
selective about imported U.S. recyclables and does not want the trash that comes with them.
The impacts of these policies have been felt industrywide. Through 2017, over 25% of the world's
recyclables were imported by China, including over 50% of the paper and plastics recycled across the
globe. The materials ban and a limitation on contamination of imports to an unprecedented 0.5% (from
the industry standard of 5-10%) means that China is no longer a viable export market for many
recyclables and recyclers. This has resulted in a worldwide glut of commodities, driven up processing
costs and further depressed commodity prices.
As a result, recycling programs across the country have had to adapt the methods for collecting, sorting
and disbursing materials collected. These changes have included dropping certain materials from being
collected altogether, paying off -takers to take materials, evaluating exemptions to landfill materials
without an off -taker and moving from free to paid programs to offset increased costs.
Fortunately, as the nation's largest recycler, Waste Management has been at the forefront of these
changes and is committed to protecting Santa Clarita's residential recycling program. To that end, we
have taken a wholistic approach, looking at improvement opportunities from collection to processing
and beyond. More specifically, local changes have included a focus on identifying recycling containers
chronically contaminated with trash, grading collected loads of recyclables before they are sent to the
Materials Recovery Facility (MRF) for sorting, slowing down sort lines to remove more contaminants and
carefully inspecting finished bales.
While these steps have helped to preserve Santa Clarita's residential recycling program for the present,
more will need to be done to sustain it for the future. The substantially decreased value of recyclables is
no longer sufficient to cover the total cost of collection and processing and the higher quality standards
mean residents must be far more diligent about what goes into recycling containers. Overcoming these
obstacles will be a massive undertaking and we look forward to our continued discussion on how we
modernize our partnership to address these changes.
Supporting Santa Clarita's High Quality of Life
2017/2018 Service Highlights
WM is proud to be a sustainability partner to the City of Santa Clarita and is committed to assisting the
City in complying with State mandates, increasing diversion, being stewards of the environment and
active participants in the community. We would like to take this opportunity to highlight just a few of
our mutual successes:
• WM is proud to offer and promote the Super Saver and Senior Discount programs for Santa
Clarita residents, which encourages active recycling participation and decreased disposal. For
these program participants, WM has provided a 35 -gallon "Super Saver" trash cart in lieu of
their current 96 -gallon trash cart at discounted rate to standard trash service. Combined, these
two programs are now being utilized by nearly 4,300 residents.
• To assist the City of Santa Clarita with meeting the medical waste needs of residents and comply
with State law, WM offers its home delivery program for sharps collection. This convenient mail -
back container system prevents needle stick injuries cause by improper handling and disposal of
sharps, lancets and needles. Since 2009, over 1,900 Santa Clarita residents have participated in
the Sharps Home Delivery Program.
• WM continues to operate the City's Illegal Dumping/Abandoned Item Route and provide
collection containers for the Neighborhood Cleanup Program at no cost to residents. Through
these programs, we are not only removing hundreds of tons of furniture, appliances, electronics
and debris from pubic areas each year, but also enhancing community pride and preventing the
health hazards associated with illegal dumping.
As part of our commitment to meeting the City's environmental goals, we are working with staff
to begin implementing the recommendations outlined in a study of recycling programs at Santa
Clarita multifamily properties conducted by SCS Engineers, one of nation's leading
environmental consultancies. These recommendations are focused on improving recycling
participation rates among Santa Clarita's growing apartment, senior housing and townhome
communities.
For the past several years, the City of Santa Clarita's Environmental Services team and Waste
Management have collaborated host the annual CArt aRt Competition at the Earth Arbor Day
Festival. The art competition encourages creative local citizens to transform refuse carts into
vibrant art pieces using recycled materials, paint, art supplies and recycled materials. School
groups, clubs, teams, church groups and individual artists have participated in this community -
building, educational event.
WM has participated in many community and business events each year and has targeted
efforts towards increasing diversion, public education, sustainability and community safety.
Some highlights of this involvement include participating in the Santa Clarita River Rally, Home
and Garden Show/Emergency Expo/Earth Arbor Day Festival and the SCV Senior Center's Touch -
A -Truck event. In addition, during 2017 we provided monetary and in-kind support for Bridge to
Home, SCV Senior Center, SCV Boys & Girls Club, the Santa Clarita Track Club, Family Promise's
Box City, Carousel Ranch and the Santa Clarita Sheriff's Station.
As a company, Waste Management is dedicated to making a positive difference in Santa Clarita's
environment and quality of life. Thank you for your favorable consideration of our requests and
recommendations. We look forward to continuing our partnership to keep Santa Clarita, a clean, vibrant
community!
Sincerely,
Josh Mann `I
Public Sector Solutions Manager
Enclosures:
Exhibit A — 2018/2019 Rate Adjustment Calculations
Exhibit B — Extraordinary Rate Adjustment Calculation for Changes in MSW Disposal Costs
Exhibit C — Recycling Industry Information
cc: Dale Sargent
SECTION 1. Exhibit "2" of the Agreement, entitled "Initial Maximum Rates"
shall be amended to contain the following maximum rates starting on the rate year
commencing July 1, 2017, and ending June 30, 2018:
Standard Service Rate $23.55 per month
Reduced Rate for no Greenwaste services $21.55 per month
Reduced Rate for Super Saver/Senior/Lifeline Customers $18.84 per month
Mobile Home Service Rate $17.66 per month
The Multi -Family rates will be as follows:
Container Size
1
2
Number of Week1v Picku
3 4
s
5
6
7
1.5 yd
$71.02
$142.05
$213.08
$284.07
$355.10
$426.12
$497.15
2 yd
$75.71
$151.40
$227.09
$302.82
$378.49
$454.19
$529.89
3 yd
$85.06
$170.07
$255.16
$340.21
$425.24
$510.31
$595.35'
4 yd3 1
$94.381
$188.821
$283.191
$377.581
$471.991
$566.411
$660.79
Special Services
Costs
Street Litter Carts
$20.88 per set per month
Restart Charge
$21.25
Refuse Overage Extra Pickup
$7.10 per pickup
Extra Trash Cart
$14.16 per month
Locking Bin
$14.17 per bin per month
Bulk Billing Discount
8%
Extra Bulky Item Pickup
$28.35 per pickup
Additional Bin Cleanings
$49.57 per cleaning
Extra Bin Empties
$49.57 per empty
Compactor Rates
2x comparable bin rate
Late Fees
1.50% per month
Emergency Services
$99.20 per hour
Manure Collection
100% of comparable multifamily bin refuse
Prepayment Discount
One Month Free with 11 month prepaid
Cart Service
Bin Sery + Other
Base Rate Increase Factor
1.71%
1.71%
Addtitional Factor
0.00%
0.00%
Total Rate Increase Factor
1.71%
1.71%
Carryover from Prior Years
1.97%
0.00%
Limit to MFN to County Rate
0.00%
0.00%
Allowed Rate Increase
3.68%
1.71%
Waste Management of Santa Clarita
City of Santa Clarita
Exhibit B - Proposed Extraordinary Adjustment for Solid Waste Disposal
Calculation Factors Residential Multi -Family
Actual MSW Tons* (3/1/2017 to 2/28/2018)
51,631.48
25,761.09
CCLF Gate Rate Increase (per MSW ton)
$
7.03
$ 7.03
Annual Additional MSW Disposal Expense
$
362,969.30
$ 181,100.46
Monthly Additional Disposal Expense
$
30,247.44
$ 15,091.71
Residetial MSW Carts**
51,263
MF MSW Monthly Collected Bin Yards**
53,009
Additional $ Increase Needed***
$
0.59
$ 0.28
MF Annual Container Revenue (MSW)
$
1,075,022
$ 337,256
MF Percentage Increase Needed
2.81%
4.47%
*Does not include residual from recyclables processing
**Average Monthly over 3/1/2017 to 2/28/2018
***Per MF MSW Collected Yard
Exhibit C: Recycling Industry Information
Some Seattle -area recycling dumped in landfills as China's restrictions kick in
Seattle Times - Originally published March 29, 2018 at 6:00 am Updated March 29, 2018 at 2:07 pm
Seattle recycling processor Republic is sending "hundreds of tons" of mixed paper to landfills, a move
triggered by the loss of the industry's biggest market for recycled commodities.
By Benjamin Romano
Seattle Times business reporter
Yellowing newspapers, junk mail and scrap paper, bundled together in blocks as big as a compact car,
are stacked three and four high in nearly every available corner of the largest recycling facility in Seattle.
Rows of these mixed -paper bales also sit out in the rain and wind, sodden and sagging like their value
now that China, which was by far the largest and most important market for this commodity, has shut its
doors.
Republic Services, which processes recycling from Seattle, Bellevue and other cities in King County, has
sought permission to send some of this unmarketable paper, fast becoming mush, to regional landfills.
The company cites safety and health risks as the bales pile up in the Sodo facility designed to send out as
much as it takes in — about 750 tons — each day.
"Regardless of price point, we haven't been able to move material on a daily basis," said Pete Keller,
Republic's vice president for recycling and sustainability.
Even as Republic finds new markets and installs equipment to meet new quality standards, the company
has sent "hundreds of tons" of mixed paper to landfills, including its own outside of Roosevelt, Klickitat
County, over the last couple of weeks, That's a relatively small amount in the bigger picture of the
region's standout recycling system, but it's the most visible local repercussion so far from China's new
National Sword policy, which was announced last summer and took effect Jan. 1. China instituted
outright bans on some recyclables, including mixed paper, and heightened quality standards that the
Washington Refuse and Recycling Association describes as "all but unachievable with current equipment
and system costs."
The impact will likely show up on ratepayer bills before long, as commodity prices plummet and costs to
process recyclable materials increase, say local government and industry officials.
Despite the changes roiling recycling markets, recyclers here are sending a consistent message: People
should continue recycling and consider upping their game to help meet new quality requirements. That
means reducing contamination from food and liquids — containers should be empty, clean and dry
when placed in the cart — and letting go of "aspirational" recycling. That's when people try to recycle
things they think should be recyclable but aren't. People can check with their cities and service providers
for up-to-date lists of what should go in the recycling cart.
"We've spent decades and decades educating the public about the value of recycling and what goes in
what bin," said Heather Trim, executive director of Zero Waste Washington. "We definitely don't want
to go backwards on that."
Improved consumer and business practices will help recyclers as they tap new markets and try to reopen
sales to China.
In the short term, recycling companies have sent mixed paper to buyers in India, Malaysia, Vietnam and
South Korea. But these secondary markets have nowhere near China's appetite for recycled paper,
creating a global supply -demand imbalance that has driven down prices.
China closes the door, prices crash
The average price paid to recyclers for a ton of mixed paper in the Pacific Northwest and across
North America has plummeted in the last year.
$100 prr ton of mixed paper
$97.50
REGIONAL AVERI4GE
r - - IULYlf
$77.50
I
China announces new
80
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bans on imported recycling,
including mixed paper.
$75
1
60 NATIONAL AVERAGE
IAN.1
MARCH 1
Import ban
0.5%contdmination
7
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limit takes effect.
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Source: RecycNngMurkets.net
EMILY M. ENG i THE SEATTLE TIMES
The average price paid to recyclers in the Northwest, including British Columbia, has plummeted in the
last year from $97.50 to $5 a ton as of mid-March, according to data from RecyclingMarkets.net.
The new Asian markets also come with higher costs for processing and shipping — recycled commodities
bound for China were shipped at low costs by sending them in empty shipping containers returning from
West Coast ports — and there are questions about their long-term viability.
Although less attractive than China, the presence of these secondary markets — which have been
tapped by recyclers including Recology and Waste Management — prompted the city of Seattle to deny
Republic's request to send materials collected in the city to landfills.
"Markets are challenging, but there continues to be opportunities to move the specific commodity,
mixed paper," said Hans Van Dusen, Seattle's solid waste contracts manager.
Seattle accounts for about 40 percent of the material sent to the Republic recycling plant in Sodo for
processing.
Republic says most of the other cities it serves in King County have granted it temporary authorization to
send deteriorating mixed -paper bales to landfills. Bellevue, for example, gave Republic permission to do
so until April 20 in recognition of the China market disruption, said public information officer Michael
May with Bellevue Utilities.
Oregon's Department of Environmental Quality has also granted waivers allowing some recyclables to
be sent to the dump.
Republic executives say sending recyclable materials to landfills is a worst-case option to deal with an
unprecedented situation. Environmental concerns aside, it's usually more expensive to dump it than
recycle it, even at such low prices.
Most recyclers are for-profit businesses and will seek to pass on their increasing costs. The state Utilities
and Transportation Commission (UTC), which regulates what solid waste haulers can charge for services
outside of areas covered by municipal contracts, is already fielding rate- and contract -adjustment
requests, said Danny Kermode, the commission's assistant director for solid waste and water.
Representatives of both Recology and Waste Management indicated they may seek rate increases from
the cities with which they contract. Waste Management has already initiated a request at the UTC.
Republic said it is still weighing its options.
"We need to more closely associate the costs of recycling in customers' minds with what is actually
happening," said Kevin Kelly, general manager of Recology, which provides recycling and collection
services locally to cities including Shoreline, Bothell, and Burien, and operates a materials -processing
facility.
Republic's Keller and others in the recycling industry think Chinese paper mills will eventually accept
recycled paper from the U.S. again. But recyclers will need to meet new quality standards. China now
demands much lower levels of contamination — no more than 0.5 percent — for materials it is
accepting, including cardboard and newsprint.
"That's much cleaner than what most of these systems are set up to produce," Keller said.
At Republic's Lander Street facility in Sodo, which handles recycling collected by its own trucks and by
those of its competitors, the sorting process begins with an undulating ocean of everything people place
in their blue or green recycling bins, including many things they shouldn't. This pile is gradually fed into a
maze of conveyor belts that run over, under and through a series of screens, blades, scanners, fans, air
jets and magnets that separate cardboard, plastic, metal, glass and paper. About 50 people work amid
the machines, picking out by hand items missed by the technology.
This week, Republic is installing a new optical scanner, which it says is the first of its kind in the country,
specifically aimed at reducing contamination in mixed -paper bales, and doing so at high speed.
"The other way to do better quality is manual labor at low speed," Keller said, but that can reduce the
capacity of a facility, which each day has to confront another wave of incoming recycling.
Benjamin Romano: 206-652-6593 or bromano@seattletimes.com; on Twitter @bromano
Industry Associations Respond to China's Expanded Waste Import Ban
Waste360 –April 20, 2018
China's Ministry of Ecology and Environment has added 32 new types of solid waste to its banned
import list.
By Mallory Szczepanski
Just as the waste and recycling industry was starting to make some adjustments to comply with China's
recently enacted waste import ban and contamination standard, China's Ministry of Ecology and
Environment (MEE) announces plans to ban 32 more types of solid waste by the end of 2019.
Sixteen types of solid waste, including compressed car scraps and scrapped ships, will be banned from
import beginning December 31, 2018, and another 16 types, including stainless steel scraps, will be
banned beginning December 31, 2019.
This move sparked a reaction from three major waste and recycling associations—the Solid Waste
Association of North America (SWANA), the Institute of Scrap Recycling Industries (ISRI) and the National
Waste & Recycling Association (NWRA)—which have recently submitted a number of filings and
feedback regarding China's intentions.
NWRA released the below statement:
The Chinese government has made it clear that they will continue to ban additional materials.
Therefore, it's not a complete surprise that they have released a new list of banned materials.
NWRA members collect mainly from residential and commercial businesses whose recyclables cover a
range of different materials. Most of the materials identified on the latest list are industrial in nature
and are unlikely to directly affect most of our members.
However, there are references to some PET and polyethylene materials. While post -consumer plastics
were banned in the previous iteration of the ban, there was potential for processed post -consumer
plastics to continue to move into China. This ban might obviate that option.
In addition, indirectly, these restrictions could upend existing markets for these materials resulting in
additional market turbulence that could impact our members.
SWANA CEO and Executive Director David Biderman told Waste360 that "the announcement serves as a
timely reminder that no one should be expecting China to roll back the recently implemented waste
import restrictions, and that we need to support domestic, job -creating recycling markets here in the
United States."
ISRI President Robin Wiener also commented on the announcement.
"The Chinese Government's announcement will have an impact on more than 676,000 metric tons,
worth about $278 million, in U.S. scrap commodity exports to China in the first year and another 85,000
metric tons worth more than $117 million in the second year," said Wiener in a statement. "Although
we anticipated more import restrictions would be announced, we remain concerned about the effect
these policies have on the global supply chain of environmentally friendly, energy-saving scrap
commodities and will instead promote an increased use of virgin materials in China, offsetting the
government's intent to protect the environment."
The associations will continue to follow this development and its impact on the industry as we progress
further into 2018 and beyond. They are committed to working closely with governments, stakeholders
and the public and private sectors on education efforts, contamination reduction efforts and finding
new homes for these banned materials.
SWANA to Focus on Plastic Reduction, Recycling
Waste360 - April 20, 2018
SWANA is committing to reducing the generation of single -use plastics and correctly recycling these
materials.
By Waste360 Staff
This Earth Day, the Solid Waste Association of North America (SWANA) is committing to a renewed focus
on reducing the generation of single -use plastics and correctly recycling these materials, urging industry
and public education efforts.
In support of Earth Day 2018's dedication to ending plastic pollution, SWANA would like to emphasize to
all members and the public that "reduce and reuse" come before "recycle" on the waste hierarchy for a
reason; the world's primary efforts should center on reducing the amount of waste generated, and
finding ways to give products a longer lifecycle, in order to reduce environmental impact.
"We should think differently before we purchase products made with plastic, and in the spirit of
reduction, ask ourselves if we really need them," said Tracie Onstad Bills, Northern California director of
sustainable materials management at SCS Engineers, in a statement. "Consider buying material that can
be reused, or at a minimum, easily recycled—these are principles we can live by every day, not just on
Earth Day."
To successfully process the plastic waste generated, the public must be educated on what goes into the
blue bin—plastic bags cause jams to processing equipment, batteries cause serious fires and food waste
can contaminate an entire bale.
Contamination has been a major concern in the wake of China's waste import restrictions; recycling
exports have declined, and SWANA recognizes the serious need for increased governmental support for
North American recycling programs and an industry that provides jobs, tax revenue and preserves
landfill space for generations to come. SWANA recently sent a letter to key congressional leaders in the
U.S. urging that recycling be included in any future infrastructure bill.
This Earth Day, the Solid Waste Association of North America (SWANA) is committing to a renewed focus
on reducing the generation of single -use plastics and correctly recycling these materials, urging industry
and public education efforts.
In support of Earth Day 2018's dedication to ending plastic pollution, SWANA would like to emphasize to
all members and the public that "reduce and reuse" come before "recycle' on the waste hierarchy for a
reason; the world's primary efforts should center on reducing the amount of waste generated, and
finding ways to give products a longer lifecycle, in order to reduce environmental impact.
"We should think differently before we purchase products made with plastic, and in the spirit of
reduction, ask ourselves if we really need them," said Tracie Onstad Bills, Northern California director of
sustainable materials management at SCS Engineers, in a statement. "Consider buying material that can
be reused, or at a minimum, easily recycled—these are principles we can live by every day, not just on
Earth Day."
To successfully process the plastic waste generated, the public must be educated on what goes into the
blue bin—plastic bags cause jams to processing equipment, batteries cause serious fires and food waste
can contaminate an entire bale.
Contamination has been a major concern in the wake of China's waste import restrictions; recycling
exports have declined, and SWANA recognizes the serious need for increased governmental support for
North American recycling programs and an industry that provides jobs, tax revenue and preserves
landfill space for generations to come. SWANA recently sent a letter to key congressional leaders in the
U.S. urging that recycling be included in any future infrastructure bill.
"Our communities need support in developing renewed and standardized messaging on recycling
smarter in order to increase the quality and market opportunities for collected plastic resources," said
Jeffrey Murray, P.E., international president at SWANA and senior project manager at HDR, in a
statement. "Our industry needs investment in infrastructure to expand our domestic processing
capabilities and to incentivize the development of new end products from recycled plastics."
SWANA's new Recycling Task Force is working to address how North America can successfully and
sustainably process the amount of plastic that is in the waste stream by initiating public education
efforts, actively calling for increased funding for recycling infrastructure and exploring new opportunities
to increase demand for recycled content.
"Through the collective efforts of SWANA's Recycling Task Force, cooperation with federal and state
officials and renewed public awareness brought on by Earth Day, I am hopeful that we can make
headway in finding creative solutions to reducing and processing our plastic waste," said David
Biderman, SWANA's executive director and CEO, in a statement.
--End of Exhibit--
R
- +qrfi.
i6o
"'We'll Take Care Of It"
March 30, 2018
Mr. Darin Seegmiller
City of Santa Clarita
23920 Valencia Blvd
Santa Clarita, CA 91355
Dear Darin:
Pursuant to the City of Santa Clarita's Agreement for Commercial Solid Waste
Services, Burrtec respectfully requests an extraordinary rate adjustment for the
annual commercial rate review.
As we have discussed, the current rate structure does not support the required
commercial solid waste collection services. The standard contract rate adjustment
formula of 1.81 % is a very negligible amount given the significant cost increases.
This is particularly evident with changes in the following:
• Landfill tip fees at Chiquita Canyon
Mixed Waste processing tip fees
• Organics processing fees
Recyclable material values
• Operational costs related to state compliance mandates
On behalf of Burrtec Waste Industries we would like to thank the City of Santa Clarita
for their time and consideration on this issue and look forward to more detailed
d iscussions.
Sincerely,
Richard Nino
Vice President
cc: Dale Sargent, City of Santa Clarita
Bob Coon, CFO, Burrtec Waste Industries
9890 Cherry Avenue ' Fontana, California 92335 • 909-429-4200 ' FAX 909-429-4290
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet - Trash
Santa Clarita - Contract Renewal Rate Analysis - 3-30-18
2017 Rate Components
2018 Rate Components
1.61%
16slyd
10.00%
CPI
85
Per Yard
10.00%
Bin
Net to
Franchise
Total
3 43.68
$ 2.37
Franchise
Total
Size
Freq
Burrtec
Fee
Rate
Service
Disposal
Recycling
Fee
Rate
1.5
1
65.40
7.27
72.67
61.28
12.07
15.41
9.86
98.62
15
2
127.53
14.17
141.70
95.20
24.13
30.81
16.68
166.82
1.5
3
189.67
21.07
210.74
119.47
36.20
46.22
22.43
224.32
1.5
4
25114
27.90
279.04
143.60
48.27
61.62
28.17
281.66
15
5
312.58
34.73
347.31
16726
60.34
77.03
33.85
338.48
1.5
6
374.08
41.56
415.64
19125
72.40
92.43
39.56
395.64
1.5
7
435.54
48.39
483.93
218.68
84.47
107.84
45.67
456.66
2
1
6805
7.56
75.61
73.26
16.09
20.54
12.21
122.10
2
2
132.69
14.74
147.43
107.84
32.18
41.08
20.12
201.22
2
3
197.32
21.93
219.25
145.76
48.27
61.62
28.41
284.06
2
4
261.32
29.04
290.36
180.17
64,36
82.16
36.30
362.99
2
5
32526
36.14
361,40
223.30
80.45
102.70
45.16
451.61
2
6
389.24
43.25
432.49
248.31
96.54
123.24
52.01
520.10
2
7
453.20
50.36
503.56
276.51
112.63
143.78
59.21
592.13
3
1
74.42
8.27
82.69
82.12
24.13
30.81
15.23
152.29
3
2
145.10
16.12
161.22
117.78
48.27
61.62
25.30
252.97
3
3
215.80
23.98
239.78
162.97
72.40
92.43
36.42
364.22
3
4
285.78
31.75
317.53
207.79
96,54
123.24
47.51
475.08
3
5
355.71
39.52
39523
252.59
120.67
154.05
58.59
585.90
3
6
425.69
47.30
472.99
297.18
144.81
184.86
69.65
696.50
3
7
495.66
55.07
550.73
346.09
168,94
215.67
81.19
811.89
4
1
93.50
10.39
103.89
94.13
32.18
41.08
18.60
185.99
4
2
182.35
20.26
202.61
136.05
64.36
82.16
31.40
313.97
4
3
271.18
30.13
301.31
187.84
96.54
123.24
45.29
45291
4
4
359.07
39.90
398.97
239.17
128.72
164.32
59.13
591.34
4
5
446.98
49.67
496.65
290.48
160.90
205.40
72.98
729.76
4
6
534.87
59.43
594.30
341.78
193.08
246.48
86.82
868.16
4
7
622.77
69.20
691.97
402.25
225.26
287.56
101.67
1,016.74
6
1
119.60
13.29
132.89
106.63
48.27
61.62
24.06
240.58
6
2
233.18
25.91
259.09
168.99
96.54
123.24
43.20
431.97
6
3
346.81
38.53
385.34
23470
144.81
184.86
62.71
627.08
6
4
459.20
51.02
510.22
300.04
193.08
246.48
82.18
821 78
6
5
571.60
63.51
635.11
365.43
241.35
308.10
101.65
1,016.53
6
6
684.02
76.00
760.02
430.86
289.61
369.72
121.13
1,21132
6
7
796.43
88.49
884.92
508.13
337.88
431.34
141,93
1,419.28
32G Can
1
41.80
4.65
46.45
40.51
1.29
1.64
4.83
48.27
32G Can
2
75.28
8.37
83.65
72.71
2.57
3.29
8.73
87.30
32G Can
3
125.45
13.94
139.39
121.59
3.86
4.93
14.49
144.87
32G Can
4
167.26
18.58
185.84
162.11
5.15
6.57
1931
193.14
32G Can
5
209.10
23.23
232.33
202.66
6.44
8.22
24.15
241.47
32G Can
6
250.92
27.88
278.80
243.20
7.72
9.86
28.98
289.76
90G Can
1
46.77
5.20
51.97
43.15
362
4.62
5.71
57.10
90G Can
2
84.19
9.35
93.54
76.95
7.24
924
10.38
103.81
90G Can
3
140.31
15.59
155.90
129.45
10.86
13.86
17.13
171.30
90G Can
4
187.09
20.79
207.88
172.61
14.48
18.49
22.84
228.42
90G Can
5
233.88
25.99
259.87
215.78
18.10
23.11
28.55
285.54
90G Can
6
280.66
31.18
311.84
258.94
21.72
27.73
34.27
342.66
Santa Clarita - Contract Renewal Rate Analysis - 3-30-18
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet - Greenwaste
Santa Clarita - Contract Renewal Rate Analysis - 3-30-18
2017 Rate Components
2018 Rate Components
75%
10.00%
of Bin
150
10.00%
Bin
Net to
Franchise
Total
$ 32.00
Franchise
Total
Size
Freq
Burrtec
Fee
Rate
Service
Disposal
Fee
Rate
3
1
55.82
6.20
62.02
83.49
31.20
12.74
127.43
3
2
108.83
12.09
120.92
161.91
62.40
24.92
249.23
3
3
161.86
17.98
179.84
240.38
93.60
37.11
371.09
3
4
214.33
23.82
238.15
317.85
124.80
49.18
491.83
3
5
266.78
29.64
296.42
395.24
156.00
61.25
612.49
3
6
319.27
35.47
354.74
472.70
187.20
73.32
733.22
3
7
371.74
41.31
413.05
Santa Clarita - Contract Renewal Rate Analysis - 3-30-18
Burrtec Waste Industries, Inc.
City of Santa Clarita
Food Waste Rates
"Subject to addltional processing Facility tip Charges ' Subject to additional processing Facility tip Charges
"" Proposed 2018 Service increase is based on the 12 -month average (Oct.
2016 - Sept. 2017) of Los Angeles -Riverside -Orange County, All Urban
Consumers CPI of 2.4%.
Santa Clarita - Contract Renewal Rate Analysis - 3-30-18
2017
Rate Components
2018
Rate Components
LbsNard
'�
LbsNard
300.00
300.00
10.00%
10.00%
Disoosai'
Disoosal"
Bin
Net to
Franchise
Total
Net to
Franchise
Total
$ 69.00
$ 85.00
Size Freq
Service
Burrtec Fee Rate
Service"
Burrtec
Fee
Rate
1.5
1
$81.53
$67.28
$148.81
16.53
$165.34
$83.49
$82.88
$166.37
18.49
$184,86
1.5
2
$158.12
$134.55
$292.67
32.52
$325.19
$161.91
$165.75
$327.66
36.41
$364.07
1.5
3
5234.75
$201.83
$436.58
48.51
$485.09
$240.38
$248.63
$489.01
54.33
S543.34
1.5
4
$310.40
$26910
$579.50
64.39
$643.89
$317.85
$331.50
$649.35
72.15
5721.50
1.5
5
$385.98
5336.38
5722.36
80.26
$802.62
$395.24
$414.38
$809.62
89.96
$899.58
1.5
6
$461.62
$403.65
$865.27
96.14
$961.41
$472.70
$497.25
$969.95
107.77
$1,077.72
2
1
$81.53
$8970
$171.23
19.03
$190.26
$83.49
$110.50
$193.99
21.55
$215.54
2
2
$158.12
$179.40
$337.52
37.50
$375.02
$161.91
$221.00
$382.91
42.55
$425.46
2
3
$234,75
$269.10
$503.85
55.98
$559.83
$240.38
$331.50
$571.88
63.54
$635.42
2
4
$31040
$35880
$669.20
74.36
$743.56
$317.85
$442.00
$759.85
84.43
$844.28
2
5
$385.98
$448.50
$834.48
92.72
$927.20
$395.24
$552.50
$947.74
105.30
$1,053.04
2
6
$461.62
$53820
$999.82
111.09
$1,110.91
$472.70
$663.00
$1,13570
126.19
$1,261.89
Lbs/Barrel
Lbs/Barrel
200.00
200.00
Dis oral
D sDosal
$ 69.00
$ 85 00
65Gal
1
$5911
$29.90
$89.01
9.89
$98.90
$60.53
$36.83
$97.36
10.82
$108.18
65Gal
2
$105.75
$59.80
$165.55
18.39
$183.94
$10829
$73.67
$181.96
20.22
$202.18
65Gal
3
$177.40
$89.70
$267.10
29.68
$296.78
$181.66
$110.50
$29216
32.46
$324.62
65Gal
4
$236.52
$11960
$356.12
3957
$395.69
$24220
$147.33
$389.53
43.28
$432.81
65Gal
5
$295.67
$149.50
$445.17
49.46
$494.63
$30277
$184.17
$486.94
54.10
$541.04
65Gal
6
$354.82
$179.40
$534.22
59.36
$593.58
$363.34
$221.00
$584.34
64.93
$649.27
"Subject to addltional processing Facility tip Charges ' Subject to additional processing Facility tip Charges
"" Proposed 2018 Service increase is based on the 12 -month average (Oct.
2016 - Sept. 2017) of Los Angeles -Riverside -Orange County, All Urban
Consumers CPI of 2.4%.
Santa Clarita - Contract Renewal Rate Analysis - 3-30-18
Burrtec Waste Industries, Inc.
City of Santa Clarita
July 2018
Service
July 1, 2017
Current Rate
July 1, 2018
Proposed Rate*
Extra Pick -Up (Bin)
$44.88
$45.96
Extra Pick -Up (Compactor)
$63.67
$65.20
Extra Pick -Up (Barrel)
$31.76
$32.52
Compactor Rates
2x Comparable Rate
2x Comparable Rate
Locking Bins (per bin/per month)
$12.82
$13.13
Additional Bin Cleanings
$44.88
$45.96
Commercial Bulky Item Pickup
$25.64
$26.26
Emergency Services (per hour, 1 person, 1 truck)
$88.78
$90.91
Late Fees (per month)
1.5%
1.5%
Recycling Contamination - Barrel
$31.76
$32.52
Recycling Contamination - Bin
$44.88
$45.96
* Proposed 2018 Rates are Based on the 12 -month average (Oct. 2016 - Sept. 2017) of Los
Angeles -Riverside -Orange County, All Urban Consumers CPI of 2.4%.
Santa Clarita - Contract Renewal Rate Analysis - 3-30-18
Burrtec Waste Industries, Inc.
Refuse Rate Adjustment Calculations
City of Santa Clarita - Commercial
July 2018
Total Rate Increase 1.81%
Alternative Calculation - Refuse
12 -Month
12 -Month
12 -Month
Allowable
Allowable
:Nei ht
Percent
Amount
Index
Average
Index
Average
Average
Percentage
Percentage
Percentage
Reference
Percent
1011116-9130117
Reference
1011/15-9130116
10/1/16-9130117
Inc / (Dec)
of Changs
Change
Weight
Amount
Labor
PCU56211-56211-
131.2
134.1
2.21%
100%
2.21%
30%
0.663%
Fuel
DOE West Coast CNG
2.67
2 76
3.37%
100%
3.37%
5%
0,169%
Equipment
PCU336211336211
236.9
239.0
0.89%
100%
0.89%
15%
0.134%
'Disposal
CUUROOOOSEHG02
437.748
446.500
2.00%
100%
2.00%
34%
0680%
All Other
CUUROOOOSEHG02
437.748
446.500
2.00%
50%
1.00%
16%
0.160%
Total
100%
100%
1,806%
Total Rate Increase 1.81%
Alternative Calculation - Refuse
12 -Month
12 -Month
Percentage
Inc / Dec
Allowable
Percentage
Chane
:Nei ht
Percent
Amount
Index
Average
Average
Percentage
Percentage
Percentage
Percentage
Percent
Reference
10/1115-9/30/16
1011116-9130117
Inc 1(Dec
o[Change
Change
Weight
A louni.
Labor PCU56211-56211-
131.2
134.1
2.21%
100%
2.21%
30%
0.663%
Fuel DOE West Coast CNG
2.7
2.8
3.37%
100%
3.37%
5%
0.169%
Equipment PCU336211336211
2369
239.0
0.89%
100%
0.89%
15%
0.134%
Disposal Actual Facility Rates
S 41.31
$ 44.43
7.55%
100%
7.55%
34%
2567%
All Other CUUROOOOSEHG02
437.7
446.5
2.00%
50%
1.00%
16%
0.160%
Total
446.5
2.00%
50%
1.00%
16%
100%
3.693%
Total Rate Increase
100%
3.69%
Altemative Calculation - Green Waste
12 -Month
12 -Month
Percentage
Inc / Dec
Allowable
Percentage
Chane
:Nei ht
Percent
Amount
Labor
Index
Average
Average
Percentage
Percentage
Percentage
30%
Percent
Fuel
Reference
1011115-8130116
10/1116-9130117
Inc / (Dec)
of Change
Change
Weight
Amount
Labor
PCU56211-56211-
131.2
134.1
2.21%
100%
2.21%
30%
0.663%
Fuel
DOE West Coast CNG
2.7
2.8
3.37%
100%
3.37%
5%
0.169%
Equipment
PCU336211336211
236.9
239.0
0.89%
100%
0.89%
15%
0.134%
Disposal
Actual Facility Rates
S 3000
S 32.00
6.67%
100%
6.67%
34%
2268%
All Other
CUUROOOOSEHG02
437.7
446.5
2.00%
50%
1.00%
16%
0.160%
Total
100%
3.394%
Total Rate Increase 3,39%
Alternative Calculation - Food Waste
Index
Reference
12 -Month
Average
1011/15-9/30/16
12 -Month
Average
10/1/16-9/30/17
Percentage
Inc / Dec
Allowable
Percentage
of Chane
Percentage
Chane
:Nei ht
Percent
Amount
Labor
PCU56211-56211-
131.2
134.1
2.21%
100%
2.21%
30%
0.663;-
Fuel
DOE West Coast CNG
2.7
2.8
3.37%
100%
3.37%
5%
0.169%
Equipment
PCU336211336211
236.9
239.0
0.89%
100%
0.89%
15%
0.134%
Disposal
Actual Facility Rates
$ 69.00
$ 85.00
23.19%
100%
23.19%
34%
7.885%
All Other
CUUROOOOSEHG02
437.7
446.5
2.00%
50%
1.00%
16%
0.160%
Total
100%
9.011%
Total Rate Increase
9.01%
Santa Clarita - Contract Renewal Rate Analysis - 4-20-18
Burrtec Waste Industries, Inc.
Refuse Rate Adjustment Calculations
City of Santa Clarita - Commercial
July 2018
Santa Clarita - Contract Renewal Rate Analysis - 4-20-18
DOE West
PCU56211-
Coast CNG
PCU336211
CUUR0000
56211-
($/DGE)
336211
SEHG02
14cnits
Oct -15
128.9
$
268
235.8
434.829
Nov -15
129.0
235.9
436.428
Dec -15
128.3
235.9
436.996
Jan -16
129.8
S
2.71
236.3
437.205
i Feb -16
130.4
236.8
438.296
Mar -16
131.7
236.9
437 699
Apr -16
132.5
$
2.62
237.1
437.676
May -16
132.7
237.1
438.317
132.7
237.3
437.858
,1un,11
Jul-16
132.6
$
267
237.7
438 607
Aug -16
133.1
237.9
439.358
Sep -16
133.2
2379
439.707
12 -month average
131-2
$
2.67
2369
437.748
Month
Oct -16
132.9
$
2.70
237.9
440.311
Nov -16
132.5
238.2
443.343
Dec -16
132.3
238.3
444.745
Jan -17
1327
S
276
2384
446.266
Feb -17
133.2
238.4
447.699
Mar -17
133.8
238.7
446.987
Apr -•17
134.9
$
2.78
239.0
447129
May -17
134.9
239.3
447.272
Jun -17
134.9
2395
448.046
Jul -17
135.1
$
2.79
240.2
448.328
Aug -17
135.5
240.2
448 717
Sep -17
136.9
240.4
449 008
12 -month average
134.1
$
2.76
239.0
446 500
Percent Change
2.21%
3.37%
0.89%
2.00%
Santa Clarita - Contract Renewal Rate Analysis - 4-20-18
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet - Greenwaste
Santa Clarita - Contract Renewal Rate Analysis - 4-20-18
Increase Percent
2.10
3.39%
2017 Rate Components
2018 Rate Components
6.10
3.39%
8.07
3.39%
75%
3.39%
12.03
3,39%
10.00%
of Bin
10.00%
CPI
Bin
Net to
Franchise
Total
Net to
Franchise
Total
Size
Freq
Burrtec
Fee
Rate
Burrtec
Fee
Rate
3
1
55.82
6.20
62.02
57.71
6.41
64.12
3
2
108.83
12.09
120.92
112.52
12.50
125.02
3
3
161.86
17.98
179.84
167.35
18.59
185.94
3
4
214.33
23.82
238.15
221.60
24.62
246.22
3
5
266.78
29.64
296.42
275.82
30.65
306.47
3
6
319.27
35.47
354.74
330.09
36.68
366.77
3
7
371.74
41.31
413.05
Santa Clarita - Contract Renewal Rate Analysis - 4-20-18
Increase Percent
2.10
3.39%
4.10
3.39%
6.10
3.39%
8.07
3.39%
10.05
3.39%
12.03
3.39%
Burrtec Waste Industries, Inc.
City of Santa Clarita
Food Waste Rates
Subject to additional processing Facility tip Charges
Santa Clarita - Contract Renewal Rate Analysis - 4-20-18
Increase
Percent
$14.90
2017
Rate Components
9.01%
2018
Rate Components
$58.01
9.01%
$72.32
Lbs/Yard
$86.62
9.01%
9.01
300.00
10.00%
1000%
CPI
Dis osal'
Bin
Net to
Franchise
Total
Net to
Franchise
Total
$ 69.00
Size Freq
Service
Burrtec
Fee
Rate
Burrtec
Fee
Rate
1.5
1
$81.53
$67.28
$148.81
16.53
$165.34
162.22
18.02
$180.24-
1.5
2
$158.12
$134.55
$292.67
32,52
$325.19
$319.04
35.45
$354.49
1,5
3
$234.75
$201.83
$436.58
48.51
$485.09
$475.92
52.88
$528.80
1.5
4
$310.40
$269.10
$579.50
64.39
$643.89
$631.71
70.19
$701.90
1,5
5
$385.98
$336.38
$722.36
80.26
$802.62
$787.45
87.49
$874.94
1.5
6
$461.62
$403.65
$865.27
96.14
$961.41
$943.23
104.80
$1,048.03
2
1
$81.53
$89.70
$171.23
19.03
$190.26
$186.66
20.74
$207.40
2
2
$158.12
$179.40
$337.52
37.50
$375.02
$367.93
40.88
$408.81
2
3
$234.75
$269.10
$503.85
55.98
$559.83
$549.24
61.03
$610.27
2
4
$310.40
$358.80
$669.20
74.36
$743.56
$729.49
81.06
$810.55
2
5
$385.98
$448.50
$834.48
92.72
$927.20
$909.67
101.07
$1,010.74
2
6
$461.62
$538.20
$999.82
111.09
$1,110.91
$1,089.90
121.10
$1,211.00
Lbs/Barrel
200.00
Dis osal
$ 69.00
65Gal
1
$59.11
$29.90
$89.01
9.89
$98.90
$97.03
10.78
$107.81
65Gal
2
$105.75
$59.80
$165.55
18.39
$183.94
$18046
20.05
$200.51
65Gal
3
$177.40
$89.70
$267.10
29.68
$296.78
$291.17
32.35
$323.52
65Gal
4
$236:52
$119.60
$356.12
39.57
$395.69
$388.21
43.13
5431.34
65Gal
5
$295.67
$149.50
$445.17
49.46
S494.63
$485.28
53.92
S539.20
65Gal
6
$354.82
$179.40
$534.22
59.36
S593.58
$582.35
64.71
$647.06
Subject to additional processing Facility tip Charges
Santa Clarita - Contract Renewal Rate Analysis - 4-20-18
Increase
Percent
$14.90
9.01%
$29.30
9.01%
$43.71
9.01%
$58.01
9.01%
$72.32
9.01%
$86.62
9.01%
517.14
9.01%
$33.79
9.01%
$50.44
9.01%
566.99
9.01%
$83.54
9.01%
$100.09
9.01%
$8.91 9.01%
$16.57 9.01%
$26.74 9.01%
$35.65 9.01%
$44.57 9.01%
$53.48 9.01%
' Subject to additional processing Facility tip Charges
Burrtec Waste Industries, Inc.
City of Santa Clarita
July 2018
Service
July 1, 2017
Current Rate
July 1, 2018
Proposed Rate
Extra Pick -Up (Bin)
$44.88
$46.54
Extra Pick -Up (Compactor)
$63.67
$66.02
Extra Pick -Up (Barrel)
$31.76
$32.93
Compactor Rates
2x Comparable fate
2x Comparable Rate
Locking Bins (per bin/per month)
$12.82
$13.29
Additional Bin Cleanings
$44.88
$46.54
Commercial Bulky Item Pickup
$25.64
$26.59
Emergency Services (per hour, 1 person, 1 truck)
$88.78
$92.06
Late Fees (per month)
1.5%
1.5%
Recycling Contamination - Barrel
$31.76
$32.93
Recycling Contamination - Bin
$44.88
$46.54
Santa Clarita - Contract Renewal Rate Analysis - 4-20-18
Burrtec Waste Industries, Inc.
Refuse Rate Adjustment Calculations
City of Santa Clarita - Commercial
July 2018
Per Ton 2017 Disposal Cost 2017
Per Ton Per Ton Increase Tonneoe increase Heverm
Disposal Cost $ 41.31 $ 46.43 $ 5.12 33,846.29 $ 173,293.00 $ 5,056,653 3.427%
E Rate Increase
b.23%
Food Waste
Index
Reference
12 -Month
12 -Month
Percentage
Inc / Dec
Allowable
Percentage
Chane
Wel h1
Percent
Amount
Labor
Index
Average
Average
Percentage
Percentage
Percentage
30%
Percent
Fuel
Reference
10!1/15-9/30/16
1011116-9130117
Inc 1(Pec)
of Chang e
Chane
Vvi-,1111
Amount
Labor
PCU56211-56211-
131.2
134.1
2.21%
100%
2.21%
30%
0.663%
Fuel
DOE West Coast CNG
2.67
2.76
3.37%
100%
3.37%
5%
0.169%
Equipment
PCU336211336211
236.9
239.0
0.89%
100%
0.89%
15%
0.134%
Disposal
CUUROOOOSEHGO2
437.748
446.500
2.00%
100%
2,00%
34%
0.680%
All Other
CUUROOOOSEHGO2
437.748
446.500
2.00%
50%
100%
16°%
0.160%
Total
100%
181,16%
Per Ton 2017 Disposal Cost 2017
Per Ton Per Ton Increase Tonneoe increase Heverm
Disposal Cost $ 41.31 $ 46.43 $ 5.12 33,846.29 $ 173,293.00 $ 5,056,653 3.427%
E Rate Increase
b.23%
Food Waste
Index
Reference
12 -Month
Average
10/1115.913011 ii
12 -Month
Average
10/1/16-9/30/17
Percentage
Inc / Dec
Allowable
Percentage
Of Chane
Percentage
Chane
Wel h1
Percent
Amount
Labor
PCU56211-56211-
131.2
13..1
2.21%
100%
2.21%
30%
0,663%
Fuel
DOE West Coast CNG
2.7
2.8
3.37%
100%
3.37%
5%
0.169%
Equipment
PCLJ336211336211
236.9
239.0
0.89%
100%
0.89%
15%
0.134%
Disposal
Actual Facility Rates
$ 69.00
$ 85.00
23.19%
100%
23.19%
34%
7885%
All Other
CUUROOOOSEHGO2
437.7
446.5
2.00%
50%
1.00%
16%
0160%
Total
-00%
9.011%
Total Rate Increase
9.01%
Santa Clarita - Contract Renewal Rate Analysis - 5-2-18
Burrtec Waste industries, Inc.
Refuse Rate Adjustment Calculations
City of Santa Clarity - Commercial
July 2018
Santa Clarlta - Contract Renewal Rate Analysis - 5-2-18
DOE West
PCU56211-
Coast CNG
PCU336211
CUUR0000
56211-
$/DGE
336211
SEHG02
Month
Oct -15
128.9
$
2.68
235.8
434.829
Nov -15
129.0
235.9
436.428
Dec -15
128.3
235.9
436.996
Jan -16
129.8
$
2.71
236.3
437.205
Feb -16
130.4
236.8
438.296
Mer -16
131.7
236.9
437.699
Apr -16
132.5
$
2.62
237.1
437.676
May -16
132.7
237.1
438.317
Jun -16
132.7
2373
437.858
Jul -16
132.6
$
2.67
237.7
438.607
Aug -96
133.1
237.9
439.358
Sep -16
133.2
237.9
439.707
12 -month average
131.2
$
2.67
236.9
437.748
Month
Qct -16
132.9
$
2.70
237.9
440.311
Nov -16
132.5
238.2
443.343
Dec -16
132.3
238.3
444.745
Jan -17
132.7
$
2.76
238.4
446.266
Feb -17
133.2
238.4
447.699
Mar -17
133.8
238.7
446.987
Apr -17
134.9
$
2.78
239.0
447.129
May -17
134.9
239.3
447.272
Jun -17
134.9
239.5
448.046
Jul -17
135.1
$
2.79
240,2
448.328
Aug -17
135.5
240.2
448.717
Sep -17
136.9
240.4
449.0013
12 -month average
134.1
$
2.76
239.0
446 500
Percent Change
2 21 %
3.37%
0.89%
2.00%
Santa Clarlta - Contract Renewal Rate Analysis - 5-2-18
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet - Trash
Santa Clarita - Contract Renewal Rate Analysis - 5-2-18
2017 Rate Components
2018 Rate Components
1.61%
5.23%
10.00%
CPI
10.00%
CPI
Bin
Net to
Franchise
Total
Net to
Franchise
Total
Size
Fre
Burrtec
Fee
Rate
Burrtec
Fee
Rate
Increase
Percent
1.5
1
65.40
7.27
72.67
68.82
7.65
76 47
3,80
5.23%
1.5
2
127.53
14.17
141.70
134.20
14.91
149.11
7.41
5.23%
1.5
3
189.67
21.07
210.74
199.58
22.18
221.76
11.02
5.23%
1.5
4
251.14
27.90
279.04
264.27
29.36
293.63
14.59
5.23%
1.5
5
312.58
34.73
347.31
328.92
36.55
365.47
18.16
5.23%
1.5
6
374.08
41.56
415.64
393.64
43.74
437.38
21.74
5.23%
1.5
7
435.54
48.39
483.93
458.32
50.92
509.24
25.31
5.23%
2
1
68.05
7.56
75.61
71.60
7.96
79.56
3.95
5.22%
2
2
132.69
14.74
147,43
139.63
15.51
155.14
7.71
5.23%
2
3
197.32
21.93
219.25
207.65
23.07
230.72
11.47
5.23%
2
4
261.32
29.04
290.36
274.99
30.56
305.55
15.19
5.23%
2
5
325.26
36.14
361.40
342.27
38.03
380.30
18.90
5.23%
2
6
389.24
43.25
432.49
409.60
45.51
455.11
22.62
5.23%
2
7
453.20
50.36
503.56
476.91
52.99
529.90
26.34
5.23%
3
1
74.42
8.27
82.69
78.31
8.70
87.01
4.32
5.22%
3
2
145.10
16.12
161.22
152.68
16.97
169.65
8.43
5.23%
3
3
215.80
23.98
239.78
227.09
25.23
252.32
12.54
5.23%
3
4
285.78
31.75
317.53
300.73
33.41
334.14
16.61
5.23%
3
5
355.71
39.52
395.23
374.31
41.59
415.90
20.67
5.23%
3
6
425.69
4730
472.99
447.96
49.77
497.73
24.74
5.23%
3
7
495.66
55.07
550.73
521.58
57.95
579.53
28.80
5.23%
4
1
93.50
10.39
103.89
98.39
10.93
109.32
5.43
5.23%
4
2
182.35
20.26
202.61
191.89
21.32
213.21
10.60
5.23%
4
3
271.18
30.13
30131
285.36
31.71
317.07
15.76
5.23%
4
4
359.07
39.90
398.97
377.86
41.98
419.84
20.87
5.23%
4
5
446.98
49.67
496.65
470.36
52.26
522.62
25.97
5.23%
4
6
534.87
59.43
594.30
562.84
62.54
625.38
31.08
5.23%
4
7
622.77
69.20
691.97
655.34
72.82
728.16
36.19
5.23%
6
1
119.60
13.29
132.89
125.86
13.98
139.84
6.95
5.23%
6
2
233.18
25.91
259.09
245.38
27.26
272.64
13.55
5.23%
6
3
346.81
38.53
385.34
364.94
40.55
405.49
20.15
5.23%
6
4
459.20
51.02
510.22
483.21
53.69
536.90
26.68
5.23%
6
5
571.60
63.51
635.11
601.50
66.83
668.33
33.22
5.23%
6
6
684.02
76.00
760.02
719.79
79.98
799.77
39.75
5.23%
6
7
796.43
88.49
884.92
838.08
93.12
931.20
46.28
5.23%
32G Can
1
41.80
4.65
46.45
43.99
4.89
48.88
2.43
5.23%
32G Can
2
75.28
8.37
83.65
79.22
8.80
8802
4.37
5.22%
32G Can
3
125.45
13.94
139.39
132.01
14.67
146.68
7.29
5.23%
32G Can
4
167.26
18.58
185.84
176.00
19.56
195.56
9.72
5.23%
32G Can
5
209.10
23.23
232.33
220.03
24.45
244.48
12.15
5.23%
32G Can
6
250.92
27.88
278.80
264.04
29.34
293.38
14.58
5.23%
90G Can
1
46.77
5.20
51.97
49.22
5.47
54.69
2.72
5.23%
90G Can
2
84.19
9.35
93.54
88.59
9.84
98.43
4.89
5.23%
90G Can
3
140.31
15.59
155.90
147.64
16.41
164.05
8.15
5,23%
90G Can
4
187.09
20.79
207.88
196.87
21.88
218.75
10.87
5.23%
90G Can
5
233.88
25.99
259.87
246.11
27.35
273.46
13.59
5.23%
90G Can
6
280.66
31.18
311.84
295.33
32.82
328.15
16.31
5.23%
Santa Clarita - Contract Renewal Rate Analysis - 5-2-18
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Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet - Greenwaste
Santa Clarita - Contract Renewal Rate Analysis - 5-2-18 (2)
Increase Percent
3.24
5.22%
2017 Rate Components
5.23%
2018 Rate Components
5.23%
12.46
5.23%
15.51
75%
18.56
5.23%
75%
10.00%
of Bin
10.00%
CPI
Bin
Net to
Franchise
Total
Net to
Franchise
Total
Size
Freq
Burrtec
Fee
Rate
Burrtec
Fee
Rate
3
1
55.82
6.20
62.02
58.73
6.53
65.26
3
2
108.83
12.09
120.92
114.52
12.72
127.24
3
3
161.86
17.98
179.84
170.32
18.92
189.24
3
4
214.33
23.82
238.15
225.55
25.06
250.61
3
5
266.78
29.64
296.42
280.74
31.19
311.93
3
6
319.27
35.47
354.74
335.97
37.33
373.30
3
7
371.74
41.31
413.05
Santa Clarita - Contract Renewal Rate Analysis - 5-2-18 (2)
Increase Percent
3.24
5.22%
6.32
5.23%
9.40
5.23%
12.46
5.23%
15.51
5.23%
18.56
5.23%
Burrtec Waste Industries, Inc.
City of Santa Clarita
July 2018
Service
July 1, 2017
Current Rate
July 1, 2018
Proposed Rate
Extra Pick -Up (Bin)
$44.88
$47.23
Extra Pick -Up (Compactor)
$63.67
$67.00
Extra Pick -Up (Barrel)
$31.76
$33.42
Compactor Rates
2x Comparable Rate
2x Comparable Rate
Locking Bins (per bin/per month)
$12.82
$13.49
Additional Bin Cleanings
$44.88
$47.23
Commercial Bulky Item Pickup
$25.64
$26.98
Emergency Services (per hour, 1 person, 1 truck)
$88.78
$93.42
Late Fees (per month)
1.5%
1.5%
Recycling Contamination - Barrel
$31.76
$33.42
Recycling Contamination - Bin
$44.88
$47.23
Santa Clarita - Contract Renewal Rate Analysis - 5-2-18