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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 Page 1 Packet Pg. 129 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 Page 2 Packet Pg. 130 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 Page 3 Packet Pg. 131 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) Page 4 Packet Pg. 132 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. Packet Pg. 133 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 13.a Packet Pg. 134 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. 3 13.a Packet Pg. 135 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. 4 13.a Packet Pg. 136 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 5 13.a Packet Pg. 137 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 13.a Packet Pg. 138 _ CV) 31V'M ]¥nNN¥ SN]]n¥H ]IS¥M Q]S HONVd=l) A6010POWN4UeWeBeueVYOMM :wewgoq} 7 a. \ CL / o \ o r C14 C14 : @ e 9 2 6 . \ \ CD 2 & ¥ r o 0 CD k k & n 6 co CL � T- CD & o A o 0 § % ¢ 2 / / CN ci & & a a E � �rl k.0 \ \ \ CL \ 0 2 k m CIA \ \ � � k CD k / / c,4 C*4 k� ■ E o ¥ ¥ 0 k \ \ co co ƒ 2 @e \ E q / ( q / / & E � k k / \ / / § § \ } # '- E e Ln Ln 2 CL u / \ \ ƒ / \ 2 2 3 2 I / u 7 _ D D / / ?0 a = » _ \ s � a 3 / £ 7 / e \ \ \ / ƒ_ / / k S ƒ m § 2 u G \ = 2 \ — 7 ±= 2 g 2 u; 2 2 ■ } s ° ) § / \ A « e « \ A « e / § d % % ƒ 2 o q g e a / 7 / / \ 7 / / 2 ° cu u / \ \ 2 � � E _ / q t = / � u 2 L%& 0 7 3§ 2 / 2"/ 2i cu \ � ƒ R } 7 k _ { k , { k $ ■ G/ 3 u \ \ u 0 § = z @ z k 0 � 2 y y y y y / 2 m m \ \ \CD e \ � v e � \ ° ® 0 % 0 0 E L I L) 2 0 2 E I 0 iCL CL 0E 3 q \ ■ 00 LL w o k 0 0 7 a. \ CL 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 13.c Packet Pg. 141 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. 3 13.c Packet Pg. 142 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 13.c Packet Pg. 143 Late Fees 1.5% per month Emergency Services $93.42 per hour SECTION 2. Except as expressly modified in this Sixth Amendment, all other provisions of the Agreement are and remain in effect. WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF SANTA CLARITA A California Municipal Corporation Kenneth W. Striplin City Manager ATTEST: Mary Cusick City Clerk APPROVED AS TO FORM: Joseph Montes City Attorney 13.c Packet Pg. 144 BURRTEC WASTE INDUSTRIES, INC. By: [CEO, President, Chairman of the Board or any Vice President] And By: [The Secretary, any assistant secretary, CFO or any assistant treasurer] State of California ) County of ) On before me, , Date Here Insert Name and Title ofthe Officer Name(s) of Signers) Place Notary Seal Above who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Republic 0 13.c Packet Pg. 145 _ CV) N]WISnraV 31¥II ]¥nNN¥ SU]]n¥H ]IS¥M Q]gHON"=I) ABolopoq4eVyoapng:Wewgoq} to a. \ CL 17 00 f &y -00- / § \ 7 \ \ a S ~cli CD 0 T& o = 0 0 0 � § \ 9 q A ci A o 0 ( T& e e b b 2 k k 2 a / m K K > C v (D o J / / / A 9 ¥ R / / « q ® o 0 2 v k co \ \ \ 5 • = cu z ° g q � 0 � 0 CIA \kms$ $ $ $ \ \ § / 4m;\ / « \ ± \ \ \ 3 = "-t m J f�/ _ _ u _ u _ e 0 \ e 7 E § ƒ_ / / ƒ / / m § > / / / y 3 e E / u \ CO \ \ / \ / / / 2 ® 9 3 / _ § _ _41 e % \ = e m / £ g t u / $ $ ) � < / ( q < > � $ $ Q>§\ u E>/ 3 E t 2 ƒ > _ o u m� u cu G2»& u 2] g<\§ m cu m Qn 4 o O E E±: n 3 > 2> 3 ®/ »@ 2 %/ O 4 2 4 = I \ \ / / / q 0 / � Ln \ � % y y y y y / = 2 q m \ / $ o / \ a \ � 0 7 E # ) � 2 0 2 U E 7 ƒ § 3 o i q J \ 00 LL w k 0 0 to a. \ CL 1� wime THINK GREEN® 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 i bans on imported recycling, including mixed paper. $75 1 60 NATIONAL AVERAGE IAN.1 MARCH 1 Import ban 0.5%contdmination 7 takes effect. limit takes effect. 40 — I l 20 i I �k- i l $5 0 S5 Nov. Ian. March May Iuly Sept. Nov. Ian March 2016 2017 2018 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 - 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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