HomeMy WebLinkAbout2022-05-24 - AGENDA REPORTS - WASTE HAULERS ANNUAL RATE ADJMTO
Agenda Item: 6
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: May 24, 2022
SUBJECT: FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council:
Adopt a resolution approving the Eleventh Amendment to the Amended and Restated
Agreement between the City of Santa Clarita and USA Waste of California, Inc., for
residential solid waste management services, allowing the following adjustments: A) single-
family residential standard service rates by 5.00 percent based on Section 6.5.1 Annual Rate
Cap, as outlined in the Residential Franchise Agreement, and B) multi -family residential
rates and special services by 3.18 percent, based on both the formula outlined in the
Residential Franchise Agreement, subject to City Attorney approval.
2. Adopt a resolution approving the Tenth 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 the following adjustments: A) solid
waste and organic rates by 3.38 percent, based on the formula outlined in the Commercial
Franchise Agreement, subject to City Attorney approval.
BACKGROUND
In November 2003, the City Council selected USA Waste of California, Inc. (Waste
Management), as the exclusive hauler for residential solid waste management services and
Burrtec Waste Industries, Inc. (Burrtec), as the exclusive hauler for commercial solid waste
management services.
Pursuant to their respective franchise agreements, the haulers may request rate adjustments each
year. The Annual Rate Adjustment is calculated by using a formula that is based on price indices,
including labor, fuel, equipment, and disposal.
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Both of the agreements include an Annual Rate Cap that limits the total adjustment to 5.00
percent per year. Furthermore, the agreements contain a Santa Clarita Valley Rate Cap, which
states that the City of Santa Clarita (City) single-family residential rates shall remain below the
rates of franchised collection services provided by the County of Los Angeles (County) in
unincorporated Santa Clarita Valley. Any unrealized increases as a result of these caps may be
carried forward until they are fully applied.
Burrtec and Waste Management have submitted requests for annual rate adjustments in rate year
2022-23.
Waste Management Single -Family Residential Rates 2022-23
In past years, increases to the single-family rates have been restricted by the Santa Clarita Valley
Rate Cap and the Annual Rate Cap. These rate caps have resulted in an unrealized rate deficit of
14.47 percent. Calculation of the 2022-23 Annual Rate using the methodology in the Franchise
Agreement would increase the rate by 3.18 percent.
On March 24, 2022, Waste Management requested a rate increase of 3.19 percent plus 1.81
percent of the unrealized carryover deficit, to equal the 5.00 percent maximum rate adjustment.
The .01 percent difference between the recommended rate adjustment and Waste Management's
request is due to a rounding difference, which has since been agreed upon by both City and
Waste Management staff. Staff recommends the City Council approve a 5.00 percent increase to
the City's single-family residential rate for the 2022-23 rate year, consistent with the Annual
Rate Cap, Section 6.5.1 of the Agreement. This increase would include a 1.82 percent adjustment
from the cumulative carryover adjustment for residential services that have not been realized
since 2015. If approved, the monthly single-family service rate would increase from $25.06 per
month to $26.31 per month, which is still below the Los Angeles County unincorporated single-
family rate of $28.20 per month.
Waste Management - Single -Family Residence Waste Services
Standard Rate Methodology 2022-23 3.18%
Cumulative Carryover Adjustment for Residential Cart Service from 2015-21 1.82%
Total Proposed Adjustment for Residential Cart Service: 5.00%
Waste Management Multi -Family Residential Rates 2022-23
Waste Management also requested an annual rate adjustment for multi -family and special
services. Using the prescribed methodology, the rate adjustment has been calculated to be 3.18
percent. Staff recommends the City Council approve a 3.18 percent adjustment to the multi-
family residential rates and special services.
Burrtec Commercial Rates 2022-23
On March 31, 2022, Burrtec requested a 3.38 percent rate increase for commercial services,
which is consistent with the annual rate adjustment methodology identified in the Franchise
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Agreement. The methodology is based on national price indices such as labor, fuel, equipment,
and disposal. Staff recommends the City Council approve a 3.38 percent rate increase for
commercial services, which would bring the cost of servicing a three -yard bin, one time per
week, from $131.41 to $135.85 per month.
Burrtec Residential Rates 2022-23
The California Public Resources Code governs the continuation of solid waste services after an
annexation and grants the preexisting service provider with the option to continue servicing the
given area. On December 10, 2019, the City Council approved and entered into a Continuation
Rights Agreement with Burrtec to provide waste services to three newly annexed areas: Plum
Canyon, Skyline Ranch, and North Sand Canyon.
The terms of this agreement authorize the administrative approval of rate adjustments on an
annual basis, as prescribed by the County's methodology, based on national price indices such as
labor, fuel, and disposal. Per the agreement, Burrtec must provide all customers a minimum of
30-days' written notice of the implementation of changes in any service fees.
At this time, City staff does not have the rate adjustment data from the County to determine the
rate for year 2022-23.
The final adjusted rates will not be implemented until the new County rates take effect. Once the
rate adjustment for the County has been finalized, a memo will be provided to the City Council,
detailing the single-family standard service rates for the annexed areas_
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
None by this action
ATTACHMENTS
Waste Management Resolution - Eleventh Amendment
Burrtec Resolution - Tenth Amendment
Waste Management Methodology (available in the City Clerk's Reading File)
Waste Management Request (available in the City Clerk's Reading File)
Burrtec Methodology (available in the City Clerk's Reading File)
Burrtec Request (available in the City Clerk's Reading File)
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RESOLUTION 22 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, APPROVING THE ELEVENTH 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
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
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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 Q
pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2022 r
to June 30, 2023; 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, California, does
hereby resolve as follows:
SECTION 1. The Eleventh 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 (Eleventh Amendment), a copy of which is attached hereto, is
hereby approved. The City Manager is authorized to execute the Eleventh Amendment on behalf
of the City.
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6.a
SECTION 2. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED, AND ADOPTED this 24th day of May 2022
MAYOR
ATTEST:
CITY CLERK
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DATE:
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA ) E
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I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the E
foregoing Resolution 22- was duly adopted by the City Council of the City of Santa Clarita Q
at a regular meeting thereof, held on the 24th day of May 2022, by the following vote:
AYES: COUNCIL,MEMBERS:
NOES: COUNCIL,MEMBERS:
ABSENT: COUNCIL,MEMBERS:
2
CITY CLERK
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6.a
ELEVENTH AMENDMENT OF THE AMENDED AND RESTATED
AGREEMENT BETWEEN THE CITY OF SANTA CLARITA, CALIFORNIA,
AND USA WASTE OF CALIFORNIA, INC., FOR RESIDENTIAL
SOLID WASTE MANAGEMENT SERVICES
This ELEVENTH 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, (Eleventh Amendment) is entered into this day of
2022, between the City of Santa Clarita, California, a California municipal
corporation (City) 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
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WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc., a
(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 W
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, Waste
Management is entitled to pursue an annual adjustment to its maximum rates for the rate year
commencing on July 1, 2022; 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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6.a
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, 2022:
• Standard Service Rate $26.31 per month
• Reduced Rate for no Green waste services $24.31 per month
• Reduced Rate for Super Saver/Senior/Lifeline Customers $21.06 per month
• Mobile Home Service Rate $19.74 per month
The multi -family rates will be as follows:
Container
Size
Number of Weekly Pickups
1
2
3
4
5
6
7
1.5 yd3
$85.07
$170.13
$255.23
$340.25
$425.33
$510.39
$595.47
2 yd3
$90.68
$181.34
$272.00
$362.72
$453.34
$544.02
$634.70
3 yd3
$101.88
$203.71
$305.62
$407.49
$509.34
$611.25
$713.10
4 yd3
$113.04
1 $226.17
$339.19
$452.26
$565.32
$678.44
1 $791.49
Special Services
Costs
Street Litter Carts
$25.01 per set per month
Restart Charge
$25.45
Refuse Overage Extra Pickup
$8.50 per pickup
Extra Trash Cart
$16.96 month
Locking Bin
$16.97 per bin per month
Bulk Billing Discount
8%
Extra Bulky Item Pickup
$33.95 per pickup
Additional Bin Cleanings
$59.38 per cleaning
Extra Bin Empties
$59.38 per empty
Compactor Rates
2x comparable bin rate
Late Fees
1.5%per month
Emergency Services
$118.82 per hour
Manure Collection
100% of comparable
Prepayment Discount
One month free with 11
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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6.a
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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6.a
WASTE MANAGEMENT
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[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 of the Officer
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be �-
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the person(s) whose name(s) is/are subscribed to the within Z
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.
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I certify under PENALTY OF PERJURY under the laws of Q
the State of California that the foregoing paragraph is true and t
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correct.
WITNESS my hand and official seal.
Place Notary Seal Above
Signature
Signature of Notary Public
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6.b
RESOLUTION 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, ADOPTING THE TENTH AMENDMENT OF THE AMENDED
AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA
CLARITA AND BURRTEC WASTE INDUSTRIES, INC., 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, 2022, to June 30, 2023; and
WHEREAS, AB1826 requires that jurisdictions implement an organics recycling
program for businesses, that includes education, outreach, 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, California, does
hereby resolve as follows:
SECTION 1. The Tenth Amendment of the Amended and Restated Agreement Between
the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste
Management Services (Tenth Amendment), a copy of which is attached hereto is hereby
approved. The City Manager is authorized to execute the Tenth Amendment on behalf of the
City.
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6.b
SECTION 2. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED, AND ADOPTED this 24th day of May 2022.
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 22- was duly adopted by the City Council of the City of Santa Clarita at a regular
meeting thereof, held on the 24th day of May 2022, by the following vote:
AYES: COUNCIL,MEMBERS:
NOES: COUNCIL,MEMBERS:
ABSENT: COUNCIL,MEMBERS:
2
CITY CLERK
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6.b
TENTH AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT
BETWEEN THE CITY OF SANTA CLARITA, CALIFORNIA, AND
BURRTEC WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID
WASTE MANAGEMENT SERVICES
This TENTH AMENDMENT OF THE AMENDED AND RESTATED
AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE
INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT
SERVICES, (Tenth Amendment) is entered into this day of 2022,
between the City of Santa Clarita, California, a California municipal corporation (City) and
Burrtec Waste Industries Inc., a California corporation (Burrtec) 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, 2022; and
WHEREAS, AB 1826 requires that jurisdictions implement an organics recycling
program for businesses, that includes education, outreach, 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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6.b
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, 2022:
Container Size
Number of Weekly Trash Pickups
1
2
3
4
5
6
32-gal
$57.88
$104.62
$173.71
$231.60
$289.53
$347.44
90-gal
$68.06
$123.56
$204.10
$272.17
$340.21
$408.27
1.5 yd
$105.66
$206.95
$308.23
$408.62
$508.99
$609.44
2 yd
$115.25
$225.92
$336.61
$446.43
$556.16
$665.96
3 yd
$135.85
$266.70
$397.57
$527.50
$657.33
$787.24
4 yd
$173.47
$340.74
$507.95
$673.92
$839.90
$1,005.87
6 yd
$232.56
$457.08
$681.67
$904.58
$1,127.51
$1,350.48
Container Size
Number of WeeklyGreen Waste Pickups
1
2
1 3
1 4
5
6
3 yd
$101.89
$200.02
1 $298.17
1 $395.61
$492.99
$590.43
Container Size
Number of We kly Organic Pickups
1
2
3
4
5
6
65-gal
$127.28
$236.72
$381.94
$509.23
$636.56
$763.91
2 yd
$244.86
$482.62
$720.46
$956.92
$1,193.25
$1,429.67
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6.b
Special Services
Costs
Locking Bin
$15.43 per bin per month
Commercial Bulky Item Pick -Up
$30.89 per item
Additional Bin Cleaning
$54.07 per cleaning
Extra Bin Pick -Up
$54.07 per bin
Extra Trash Cart Pick -Up
$38.26 per barrel
Compactor Rates
2x comparable rate
Late Fee
1.5% per month
Emergency Services
$106.95 per hour
SECTION 2. Except as expressly modified in this Tenth Amendment, all other
provisions of the Agreement are and remain in effect
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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6.b
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 of the Officer
Name(s) of Signer(s)
Place Notary Seal Above
Signature
Signature of Notary Public
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.
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City of Santa Clarita Calculations For Residential Waste Hauler's (Waste Management) Annual Standard Rate Adjustment
FY 2021/2022
Oct 2019-
Oct 2020-
Rate Adjustment
Percent
Cost Category
Weighting
Source
Index
Sep 2020
Sep 2021
Change
Change
g
Weighted Change
Average
Average
PPI Waste Collection
Labor
30%
PCU5621156211
148.358
153.384
5.026
3.388%
1.016%
Waste Collection
DOE Clean Cities
Alternative Fuel
Quarterly Reports.
Fuel
5%
Report, Compressed
http://www.afdc.energy
2.808
2.758
-0.050
-1.781%
-0.089%
Natural Gas Relative
gov/afdc/pn'ce_report.h
to Diesel, West Coast
tml
Price
BLS PPI, Industry,
Equipment
15%
Heavy Duty Truck
PCU336211336211
259.642
269.487
9.845
3.792%
0.569%
Manufacturing
BLS CPI All Urban
Consumers, Garbage
Disposal
25%
and Trash Collection,
CUUROOOOSEHG02
493.942
516.061
22.119
4.478%
1.120%
Not Seasonally
Adjusted, US City
Average
50% of BLS CPI All
Urban Consumers,
All Other
25%
Garbage and Trash
CUUROOOOSEHG02
493.942
516.061
22.119
2.239%
0.560%
Collection, Not
Seasonally Adjusted,
US City Average
Total Standard Methodology
100%
Total Rate Adjustment
3.175%
March 24, 2022
Mr. Curtis Williams, Solid Waste Administrator
City of Santa Clarita
23290 Valencia Boulevard
Santa Clarita, CA 91355
RE: 2022 Rate Adjustment Review
Dear Mr. Williams:
As we enter the final year of our current agreement, I would like to thank the City of Santa
Clarita for our successful partnership, allowing WM to provide industry -leading solid waste
and recycling services to residents and multifamily customers for the past decade. In that
time, we have worked together to introduce many innovative programs, overcoming
challenges and exceeding obligations in supporting Santa Clarita's high quality of life.
In maintaining this commitment and in accordance with Article 6.3 of the Amended and
Restated Agreement, we respectfully request an annual adjustment of service rates.
Summary of Requests:
Residential Adjustment
Calculated 2022 Adjustment for Residential Cart Service:
Cumulative Carryover Adjustment for Residential Cart Services:
Total Proposed Adjustment for Residential Cart Service:
3.19%
1.81%
5.00%
Multifamily & Special Services Adjustment
Calculated 2022 Adjustment for Multi -Family Rates and Special Services: 3.19%
Total Proposed Adjustment for Multifamily & Special Services: 3.19%
Supporting a More Sustainable Tomorrow for Santa Clarita
In reflecting on the past year, WM is proud to be the City's longtime partner in the areas of
environmental programming, sustainability, and community education. As we look to the
future, we would like to take this opportunity to highlight just a few of our mutual
successes:
• Fighting Back Against Illegal Dumping - We continue to help keep Santa Clarita
beautiful by removing more than two million pounds of abandoned items from
streets and sidewalks in 2021.
• Providing Vital Resident Services - To date, more than 2,400 Santa Clarita residents
have been able to dispose of their sharps, lancets and needles through WM's
convenient mail -back container system.
Neighborhood Cleanups and Online Environmental Expo - We were thrilled the City's
annual River Rally clean up event and Environmental Expo resumed as an in -person
event for 2021 and were proud to be onsite providing service reminders and
recycling tips along with donating liners and WM's Bagster bags for the event.
Consistent Community Support - WM participates in many community events each
year, promoting increased recycling participation, sustainability and community
safety. In addition, during 2021, we provided monetary and in -kind support to a
number of local organizations and causes, including the Santa Clarita Sheriff's
Station Toy Drive, Santa Clarita Valley Boys and Girls Club, Bridge to Home, Santa
Clarita Track Club's SOAR Program, Valley Industry Association and Santa Clarita
Valley Chamber of Commerce.
Planning for the Future - Keeping pace with Santa Clarita's continued growth and
reinforcing its reputation as one of the nation's best places to live, work and play
takes partners who strive for excellence. We are proud of our collaborative planning
efforts to address future changes in services that allows for maximum predictability
and a seamless transition, while minimizing costs and impacts to residents.
On behalf of our entire Santa Clarita WM team, including drivers, route managers,
mechanics and front-line staff, we are honored to help build a more sustainable tomorrow
for the City of Santa Clarita. Thank you for your favorable consideration. We look forward to
discussing this request with you in further detail.
Sincerely,
�i, Co
Ashley Co tes
Public Sector Solutions
Enclosures:
Exhibit A - 2022-2023 Rate Adjustment Calculations
City of Santa Clarita Calculations For Commercial Waste Hauler's (Burrtec) Annual Standard Rate Adjustment (FY 2021/2022)
Rate Adjustment
Oct 2019-
Oct 2020-
Percent
Cost Category
Weighting
Source
Sep 2020
Sep 2021
Change
Weighted Change
Index
Change
g
Average
Average
PPI Waste Collection
Labor
30%
PCU5621156211
148.36
153.38
5.02
3.38%
1.02%
Waste Collection
DOE Clean Cities
Quarterly Reports.
Alternative Fuel Report,
Fuel
5%
Compressed Natural Gas
http://www.afdc.ener
2.81
2.76
-0.05
-1.78%
-0.09%
y-go/www/pn*
gy'gov/af
Relative to Diesel, West
htmlce_rep
ort.html
Coast Price
BLS PPI, Industry,
Equipment
15%
Heavy Duty Truck
PCU336211336211
259.64
269.49
9.85
3.79%
0.57%
Manufacturing
BLS CPI All Urban
Consumers, Garbage
Disposal
34%
and Trash Collection,
CUUROOOOSEHG02
493.94
516.06
22.12
4.48%
1.52%
Not Seasonally
Adjusted, US City
Average
50% of BLS CPI All
Urban Consumers,
All Other
16%
Garbage and Trash
CUUROOOOSEHG02
493.94
516.06
22.12
2.24%
0.36%
Collection, Not
Seasonally Adjusted, US
City Average
Total Standard Methodology
100%
Total Rate Adjustment
3.38%
BURRTEC
WASTE INDUSTRIES, INC.
"We'll Take Care Of It"
March 31, 2022
Mr. Curtis Williams
City of Santa Clarita
23920 Valencia Blvd
Santa Clarita, CA 91355
RE: 2022 Commercial Rate Adjustment
Dear Curtis:
Pursuant to the City of Santa Clarita's Agreement for Commercial Solid Waste Services, Burrtec
respectfully requests the 2022 rate adjustment for the annual commercial rate review.
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 discussions.
Sincerely,
Dennis Verner
Division Manager
cc: Darin Seegmiller, , 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.
Refuse Rate Adjustment Calculations
City of Santa Clarita - Commercial
July 2022
12-Month
12-Month
Allowable
Index
Average
Average
Percentage
Percentage
Percentage
Percent
Reference
10/1/19-9/30/20
10/1/20-9/30/21
Inc / (Dec)
of Change
Change
Weight
Amount
Labor
PCU56211-56211-
148.4
153.384
3.36 %
100 %
3.36 %
30 %
1.008
Fuel
DOE West Coast CNG
$2.81
$2.76
(1.78) %
100 %
-1.78 %
5 %
-0.089
Equipment
PCU336211336211
259.6
269.487
3.81 %
100 %
3.81 %
15 %
0.572
Disposal
CUUROOOOSEHG02
493.900
516.100
4.49%
100%
4.49%
34%
1.527%
All Other
CUUROOOOSEHG02
493.900
516.100
4.49%
50%
2.25%
16%
0.359%
Total
100 %
3.377
Total Rate Increase
3.38
Same as above
Food Waste
12-Month
12-Month
Allowable
Index
Average
Average
Percentage
Percentage
Percentage
Percent
Reference
10/1/19-9/30/20
10/1/20-9/30/21
Inc / (Dec)
of Change
Change
Weight
Amount
Labor
PCU56211-56211-
148.4
153.384
3.36 %
100 %
3.36 %
30 %
1.008
Fuel
DOE West Coast CNG
$2.81
$2.76
(1.78) %
100 %
-1.78 %
5 %
-0.089
Equipment
PCU336211336211
259.6
269.487
3.81 %
100 %
3.81 %
15 %
0.572
Disposal
CUUROOOOSEHG02
493.9
516.100
4.49%
100 %
4.49%
34 %
1.527
All Other
CUUROOOOSEHG02
493.9
516.100
4.49%
50 %
2.25 %
16 %
0.359
Total
100 %
3.377
Total F/W Rate Increase
3.38
Burrtec Waste Industries, Inc.
Refuse Rate Adjustment Calculations
City of Santa Clarita - Commercial
July 2022
DOE West
PCU56211-
Coast CNG
PCU336211
CUUR0000
56211-
($/DGE)
336211
SEHG02
Month
Oct-19
145.9
$
2.82
259.3
486.133
Nov-19
146.2
259.3
486.485
Dec-19
146.2
259.4
486.708
Jan-20
147.8
$
2.79
258.4
491.003
Feb-20
148.5
258.5
494.429
Mar-20
149.9
258.8
495.288
Apr-20
150.1
$
2.86
258.8
494.432
May-20
149.5
259.5
494.946
Jun-20
148.3
259.5
496.679
Jul-20
148.5
$
2.76
260.5
498.564
Aug-20
149.1
260.9
500.882
Sep-20
150.3
262.8
501.756
12-month average
148.4
$
2.81
259.6
493.900
Month
Oct-20
151.4
$
2.82
262.9
503.315
Nov-20
151.5
263.0
504.970
Dec-20
151.0
263.8
508.190
Jan-21
151.9
$
2.75
264.6
512.722
Feb-21
153.3
266.8
517.270
Mar-21
155.3
267.2
518.505
Apr-21
155.5
$
2.72
267.9
518.579
May-21
154.4
269.1
516.440
Jun-21
153.7
272.3
517.202
Jul-21
153.664
$
2.74
276.456
521.185
Aug-21
154.176
279.191
524.408
Sep-21
154.763
280.593
529.934
12-month average
153.384
$
2.76
269.487
516.100
Percent Change
3.36 %
(1.78) %
3.81 %
4.49
2022 Santa Clarita Commercial Rates 3-17-22_City File 1 CPI Calc
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet - Trash
Current 7/1/21 Rate Components
Proposed
7/1/22 Rate Components
2.34%
3.38%
10.00%
CPI
10.00%
CPI
$ Increase
% Increase
Bin
Net to
Franchise
Total
Net to
Franchise
Total
from
from
Size
Freg
Burrtec
Fee
Rate
Burrtec
Fee
Rate
7/1/21
7/1/21
1.5
1
91.99
10.22
102.21
95.09
10.57
105.66
3.45
3.38%
1.5
2
180.16
20.02
200.18
186.25
20.70
206.95
6.77
3.38%
1.5
3
268.33
29.82
298.15
277.41
30.82
308.23
10.08
3.38%
1.5
4
355.73
39.53
395.26
367.76
40.86
408.62
13.36
3.38%
1.5
5
443.11
49.24
492.35
458.09
50.90
508.99
16.64
3.38%
1.5
6
530.56
58.95
589.51
548.50
60.94
609.44
19.93
3.38%
1.5
7
617.95
68.66
686.61
638.84
70.98
709.82
23.21
3.38%
2
1
100.33
11.15
111.48
103.72
11.53
115.25
3.77
3.38%
2
2
196.68
21.85
218.53
203.33
22.59
225.92
7.39
3.38%
2
3
293.04
32.56
325.60
302.95
33.66
336.61
11.01
3.38%
2
4
388.65
43.18
431.83
401.79
44.64
446.43
14.60
3.38%
2
5
484.18
53.80
537.98
500.54
55.62
556.16
18.18
3.38%
2
6
579.77
64.42
644.19
599.36
66.60
665.96
21.77
3.38%
2
7
675.35
75.04
750.39
698.17
77.58
775.75
25.36
3.38%
3
1
118.27
13.14
131.41
122.26
13.59
135.85
4.44
3.38%
3
2
232.18
25.80
257.98
240.03
26.67
266.70
8.72
3.38%
3
3
346.11
38.46
384.57
357.81
39.76
397.57
13.00
3.38%
3
4
459.22
51.03
510.25
474.75
52.75
527.50
17.25
3.38%
3
5
572.26
63.58
635.84
591.60
65.73
657.33
21.49
3.38%
3
6
685.35
76.15
761.50
708.52
78.72
787.24
25.74
3.38%
3
7
798.43
88.71
887.14
825.42
91.71
917.13
29.99
3.38%
4
1
151.02
16.78
167.80
156.12
17.35
173.47
5.67
3.38%
4
2
296.64
32.96
329.60
306.67
34.07
340.74
11.14
3.38%
4
3
442.21
49.13
491.34
457.15
50.80
507.95
16.61
3.38%
4
4
586.70
65.19
651.89
606.53
67.39
673.92
22.03
3.38%
4
5
731.20
81.24
812.44
755.91
83.99
839.90
27.46
3.38%
4
6
875.68
97.30
972.98
905.28
100.59
1,005.87
32.89
3.38%
4
7
1,020.18
113.35
1,133.53
1,054.66
117.18
1,171.84
38.31
3.38%
6
1
202.46
22.50
224.96
209.30
23.26
232.56
7.60
3.38%
6
2
397.93
44.21
442.14
411.37
45.71
457.08
14.94
3.38%
6
3
593.44
65.94
659.38
613.50
68.17
681.67
22.29
3.38%
6
4
787.50
87.50
875.00
814.12
90.46
904.58
29.58
3.38%
6
5
981.58
109.07
1,090.65
1,014.76
112.75
1,127.51
36.86
3.38%
6
6
1,175.70
130.63
1,306.33
1,215.43
135.05
1,350.48
44.15
3.38%
6
7
1,369.77
152.20
1,521.97
1,416.07
157.34
1,573.41
51.44
3.38%
32G Can
1
50.39
5.60
55.99
52.09
5.79
57.88
1.89
3.38%
32G Can
2
91.08
10.12
101.20
94.16
10.46
104.62
3.42
3.38%
32G Can
3
151.23
16.80
168.03
156.34
17.37
173.71
5.68
3.38%
32G Can
4
201.63
22.40
224.03
208.44
23.16
231.60
7.57
3.38%
32G Can
5
252.05
28.01
280.06
260.58
28.95
289.53
9.47
3.38%
32G Can
6
302.47
33.61
336.08
312.70
34.74
347.44
11.36
3.38%
90G Can
1
59.25
6.58
65.83
61.25
6.81
68.06
2.23
3.39%
90G Can
2
107.57
11.95
119.52
111.20
12.36
123.56
4.04
3.38%
90G Can
3
177.69
19.74
197.43
183.69
20.41
204.10
6.67
3.38%
90G Can
4
236.94
26.33
263.27
244.95
27.22
272.17
8.90
3.38%
90G Can
5
296.18
32.91
329.09
306.19
34.02
340.21
11.12
3.38%
90G Can
6
355.43
39.49
394.92
367.44
40.83
408.27
13.35
3.38%
2022 Santa Clarita Commercial Rates 3-17-22_City File 2 Bins
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet - Greenwaste
Current 7/1/2021 Rate Components
Proposed 7/1/2022 Rate
Components
75%
75%
10.00%
of Trash
10.00%
of Trash
$ Increase
% Increase
Bin
Net to
Franchise
Total
Net to
Franchise
Total
from
from
Size
Freq
Burrtec
Fee
Rate
Burrtec
Fee
Rate
7/1/21
7/1/21
3
1
88.70
9.86
98.56
91.70
10.19
101.89
3.33
3.38%
3
2
174.13
19.35
193.48
180.02
20.00
200.02
6.54
3.38%
3
3
259.58
28.84
288.42
268.35
29.82
298.17
9.75
3.38%
3
4
344.41
38.27
382.68
356.06
39.56
395.62
12.94
3.38%
3
5
429.18
47.69
476.87
443.68
49.30
492.98
16.11
3.38%
3
6
514.02
57.11
571.13
531.39
59.04
590.43
19.30
3.38%
2022 Santa Clarita Commercial Rates 3-17-22_City File 3 Greenwaste
Burrtec Waste Industries, Inc.
City of Santa Clarita
July 2022
CPI CPI
2.34% 3.38%
Service
July 1, 2021
Current Rate
July 1, 2022
Proposed Rate
Extra Pick -Up (Bin)
$52.30
$54.07
Extra Pick -Up (Compactor)*
$74.19
$76.70
Extra Pick -Up (Barrel)
$37.01
$38.26
Compactor Rates
2x Comparable Rate
2x Comparable Rate
Locking Bins (per bin/per month)
$14.93
$15.43
Barrel Exchange (first exchange free)
$17.00
$17.57
charge does not apply to graffiti or
damaged barrels
Barrel Replacement -lost or stolen
$73.23
$75.71
Bin Exchange (first exchange fee)
$85.00
$87.87
charge does not apply to graffiti or
damaged bins
Bin Replacement + actual cost of bin
$94.15
$97.33
lost or stolen
Additional Bin Cleanings
$52.30
$54.07
Commercial Bulky Item Pickup
$29.88
$30.89
Emergency Services (per hour, 1 person, 1 truck)
$103.45
$106.95
Late Fees (per month)
1.5%
1.5%
Recycling Contamination - Barrel*
$37.01
$38.26
Recycling Contamination - Bin*
$52.30
$54.07
Foodwaste Contamination - Barrel & Bin*
$58.29
$60.26
2022 Santa Clarita Commercial Rates 3-17-22_City File 4 Addl fees
Burrtec Waste Industries, Inc.
City of Santa Clarita
Food Waste Rates
7/1/21 Current Rate Components 7/1/22 Proposed Rate Components
Bin
Size
Freq
Net to
Burrtec
10.00%
Franchise
Fee
2.34%
CPI
Total
Rate
Net to
Burrtec
10.00%
Franchise
Fee
3.38%
CPI
Total
Rate
$ Increase
from
7/1/21
% Increase
from
7/1/21
2
1
213.16
23.69
236.85
220.37
24.49
244.86
$8.01
3.38%
2
2
420.17
46.67
466.84
434.37
48.25
482.62
$15.78
3.38%
2
3
627.21
69.69
696.90
648.41
72.05
720.46
$23.56
3.38%
2
4
833.07
92.56
925.63
861.23
95.69
956.92
$31.29
3.38%
2
5
1,038.82
115.42
1,154.24
1,073.92
119.33
1,193.25
$39.01
3.38%
2
6
1,244.64
138.29
1,382.93
1,286.70
142.97
1,429.67
$46.74
3.38%
35Gal
1
n/a
93.27
10.36
103.63
n/a
n/a
35Gal
2
n/a
170.57
18.95
189.52
n/a
n/a
35Gal
3
n/a
280.07
31.12
311.19
n/a
n/a
35Gal
4
n/a
373.43
41.49
414.92
n/a
n/a
35Gal
5
n/a
466.82
51.87
518.69
n/a
n/a
35Gal
6
n/a
560.24
62.25
622.49
n/a
n/a
65Gal
1
110.82
12.30
123.12
114.55
12.73
127.28
$4.16
3.38%
65Gal
2
206.08
22.90
228.98
213.05
23.67
236.72
$7.74
3.38%
65Gal
3
332.50
36.95
369.45
343.75
38.19
381.94
$12.49
3.38%
65Gal
4
443.33
49.25
492.58
458.31
50.92
509.23
$16.65
3.38%
65Gal
5
554.17
61.58
615.75
572.90
63.66
636.56
$20.81
3.38%
65Gal
6
665.04
73.89
738.93
687.52
76.39
763.91
$24.98
3.38%
2022 Santa Clarita Commercial Rates 3-17-22_City File 5 FW Stand Alone