HomeMy WebLinkAbout2014-05-27 - AGENDA REPORTS - SOLID WASTE- RATE ADJUSTMENT (2)Agenda Item- 4
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval: 4,A
�J
Item to be presented by: Travis Lange
DATE: May 27, 2014
SUBJECT: ANNUAL RATE ADJUSTMENT FOR FRANCHISED SOLID
WASTE SERVICE PROVIDERS
DEPARTMENT: Public Works
RECOMMENDED ACTION
City Council:
Adopt a resolution for the Third 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 residential rates by 4.43 percent based on the formula outlined in their Franchise
Agreement, and authorize the City Manager to execute the amended agreement, subject to
City Attorney approval.
2. Adopt a resolution for the Second Amendment to the Amended and Restated Agreement
between the City of Santa Clarita and Burrtec Waste Industries, Inc. (Burrtec), for
commercial solid waste management services allowing an adjustment in rates by 4.53 percent
based on the formula outlined in their Franchise Agreement, and authorize the City Manager
to execute the amended agreement, 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 the Agreement
between the City of Santa Clarita and Waste Management, for residential solid waste
management services and the Agreement between the City of Santa Clarita and Burrtec Waste
Adopted: Nos -
Industries, Inc., for commercial solid waste management services (Franchise Agreements), Waste
Management and Burrtec may request rate adjustments for their next rate year (July 1, 2014,
through June 30, 2015) if they submit a request for the adjustment by April 1, 2014, and follow
the specific guidelines for a rate increase as outlined in Section 6.4 of the Franchise Agreements.
Per Section 6.3 of the Franchise Agreements, "Adjustments to the maximum rates is 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 substantial evidence, whether the
requested maximum rate adjustment meets the requirements as set forth herein."
Waste Manaeement
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, providing a financial incentive for increased recycling
and use of smaller waste carts for residents, small recycling carts for businesses lacking space for
full-size bins, and litter/abandoned items abatement from the public right-of-way.
With the addition of the new diversion programs, the City Council authorized the City Manager
to execute the Amended and Restated Franchise Agreements to include an extraordinary rate
adjustment for rate year 2014-15. Waste Management's extraordinary rate adjustment for rate
year 2014-15 is 2.5 percent. The City's review of Waste Management's proposed rate increase
determined a 1.93 percent increase is in line with the methodology outlined in the franchise
agreement. The annual rate cap is limited to 6 percent. This authorized extraordinary rate of 2.5
percent and the proposed annual rate adjustment of 1.93 percent will adjust the single-family rate
to a total of 4.43 percent.
In the letter submitted by Waste Management dated April 1, 2014, the adjustment was calculated
using a weighting of 100 percent for the "All Other" category of the Bureau of Labor and
Statistics Consumer Price Index All Urban Consumers, Garbage, and Trash Collection, Not
Seasonally Adjusted, U.S. City Average. In 2011, the amended and restated agreement was
revised to use 50 percent of the "All Other" category. The "All Other" category is one of five
components used to determine the annual rate adjustment. This component is used to reflect the
changes in costs, which are not represented in the other four components of fuel, labor, disposal,
and equipment. The maximum rate sheets, included in the letter submitted by Waste
Management reflect the adjustment proposed for last year, but not approved, by the City Courtcil.
Therefore, Waste Management's calculated adjustment of 4.95 percent has been changed to the
City's calculated adjustment of 4.43 percent. Staff is continuing to work with Waste Management
to resolve the difference in methodology used in the proposed rate adjustments.
With the approval of the proposed rate change, the new single-family monthly rate will increase
by $0.89 to $21.08 from the current rate of $20.19, effective July 1, 2014. Similar collection
service in the unincorporated area of the Santa Clarita Valley is proposed to be $22.51 as of
July 1, 2014. Attached is a summary of the Method of Adjustment for Waste Management for
this annual rate adjustment described in Section 6.4 of the Agreement.
2
Burrtec
The City Council also approved an extraordinary rate adjustment of 2.475 percent for Burrtec for
the rate year 2014-15. The City's review of Burrtec's proposed rate increase determined a 2.056
percent increase is in line with the methodology outlined in the franchise agreement. The annual
rate cap is limited to 6 percent. The annual rate adjustment of 2.056 percent and extraordinary
adjustment will total 4.53 percent, which is effective July 1, 2014. Attached is a summary of the
Method of Adjustment for Burrtec Waste Industries, Inc., for this annual rate adjustment
described in Section 6.4 of the Agreement.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
None.
ATTACHMENTS
Resolution - Waste Management Residential
Waste Management Third Amendment
Waste Management Rate Methodology
Waste Management Request Letter
Resolution - Burrtec Commercial
Burrtec Second Amendment
Burrtec Rate Methodology
Burrtec Request Letter
RESOLUTION 14-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, CALIFORNIA,
APPROVING THE THIRD 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, 2014;
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 "Third 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" (Third Amendment), a copy of which is attached hereto, is hereby
approved. The City Manager is authorized to execute the Third Amendment on behalf of the
City.
51
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 27th day of May 2014.
MAYOR
ATTEST:
INTERIM CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA)
I, Armind Chaparyan, Interim City Clerk of the City of Santa Clarita, do hereby certify
that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at
a regular meeting thereof, held on the 27th day of May 2014, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
INTERIM CITY CLERK
THIRD 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 THIRD 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,
(Third Amendment) is entered into this day of 2014, 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."
I IN-Vll\_11;9
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, 2014; 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.
NOW, THEREFORE, the City and Waste Management in consideration of their mutual
promises, amend the Amended and Restated Agreement as follows:
I
SECTION 1. Exhibit 2 of the Amended and Restated Agreement shall be amended to
contain the following maximum rates commencing July 1, 2014:
• Standard Service Rate $21.08 per month
• Reduced Rate for no Greenwaste services $19.08 per month
• Reduced Rate for Super Saver/Senior/Lifeline Customers $16.86 per month
• Mobile Home Service Rate $15.83 per month
The multi -family rates will be as follows:
Container
Size
Costs
Street Litter Carts
$18.69 per setper month
Number of Weekly Picku s
$19.02
Refuse Overage Extra Pickup
$6.35 per pickup
Extra Trash Cart
1 2 3 4 5 6
7
1.5 yd3
$63.58
$127.17
Extra Bulky Item Pickup
$190.75
$254.31
$317.90
Extra Bin Empties
$381.48
Compactor Rates
$445.06
2 yd3
$67.78
$135.53
$88.80 per hour
$203.30
$271.09
$338.84
One month free with 11 months prepaid
$406.60
$474.37
3 yd3
$76.15
$152.25
$228.43
$304.56
$380.69
$456.84
$532.98
4 yd3
$84.49
$169.04
$253.52
$338.02
$422.54
$507.07
$591.56
Special Services
Costs
Street Litter Carts
$18.69 per setper month
Restart Charge
$19.02
Refuse Overage Extra Pickup
$6.35 per pickup
Extra Trash Cart
$12.68 per month
Locking Bin
$12.69 per bin per month
Bulk Billing Discount
8%
Extra Bulky Item Pickup
$25.37 per pickup
Additional Bin Cleanings
$44.39 per cleaning
Extra Bin Empties
$44.39 per empty
Compactor Rates
2x comparable bin rate
Late Fees
1.5% per month
Emergency Services
$88.80 per 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.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date fust above written.
CITY OF SANTA CLARTTA
A California Municipal Corporation
Kenneth W. Striplin, City Manager
ATTEST:
Arming Chaparyan
Interim City Clerk
APPROVED AS TO FORM:
Joseph Montes
City Attorney
0
IN
WASTE MANAGEMENT
M
[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 Naar and Title of the Officer
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 Public
4
CD
City of Santa Clarita Calculations For Residential Waste (Waste Management) Hauler's Annual Adjustment (FY 2014/2015)
Rate Adjustment
Oct 2011-
Oct2012-
Percent
Weighted
Cost Category
Weighting
Source
Index
Sep 2012
Sep 2013
Change
Change
Change
Average
Average
Labor
30%
PPI Waste Collection
PCU5621156211
121.8
123.6
1.8
1.48
0.444
Waste Collection
DOE Clean Cities
Quarterly Reports.
Alternative Fuel Report,
http://wvwv.afdc.energ
2.58
2.70
0.12
4.70
0.233
Fuel
5%
Compressed Natural
y.gov/afdc/price_repor
Gas Relative to Diesel,
West Coast Price
t.html
BLS PPI, Industry, Heavy
Equipment
15%
Duty Truck
PCU336211336211
224.9
227.3
2.4
1.07
0.161
Manufacturing
BLS CPI All Urban
Consumers, Garbage
Disposal
25%
and Trash Collection,
CUUROOOOSEHG02
401.76
413.41
11.60
2.90
0.725
Not Seasonally Adjusted,
US City Average
50% of BLS CPI All Urban
Consumers, Garbage
All Other
25%
and Trash Collection,
CUUROOOOSEHG02
401.76
413.41
11.60
2.90
0.363
Not Seasonally Adjusted,
US City Average
Total Standard Methodology
100%
1.93
Previously Approved
Council Approved on
2.50
Extraordinary Adjustment
May 24, 2011
Total Rate Adjustment
L
4.43
YMM.
April 1, 2014
Mr. Robert Newman
Public Works Director
City of Santa Clarita
23290 Valencia Boulevard Ste. 300
Santa Clarita, CA 91355
RE: 2014 Rate Adjustment Review
Dear Mr. Newman:
Pursuant to Article 6 of the Amended and Restated Agreement, Waste Management (WM)
respectfully requests an adjustment of service rates based on the methodology outlined in the
agreement. This request is in addition to the previously approved extraordinary adjustment of
2.5%.
Calculated Adjustment: 2.26%
Scheduled Approved Adjustment: 2.5%
Total Adjustment: 4.76%
Carry Over Effective July 1, 2014:.19%
Actual Proposed Adjustment Effective July 1, 2013: 4.95%
Pursuant to Section 6.4.1 of the contract and discussions with the City Attorney, during the 2013
rate adjustment process, the weighted percent change of the "All Other" category is calculated
at 100% rather than 50%, as calculated in 2013. Additionally, the carried over .19%, which was
postponed in 2013 due to pending discussions of 50% vs. 100%, has been added to the 2014 rate
adjustment request (outlined above). Further explanation is provided in the attached
correspondence.
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 in 2013 accomplished in partnership with City Staff:
• WM and the City continue to offer the Super Saver Program, an incentivized rate structure
encouraging active recycling participation & decreased disposal. At the customer's request,
WM will provide all eligible residents with a 35 -gallon "Super Saver" trash cart in lieu of their
current 96 -gallon trash cart. The Super -Saver Cart rate is 20% less than standard trash
service. To date, the super saver program has over 2,450 participants.
• Since the Initial launch of the Manure Recycling program in 2009, which included two
newsletters and a recorded message from the City Manager, Waste Management has
distributed additional Manure Recycling community bulletins, with a personalized message
from members of the City Council, specifically to areas of the City with horse property. As a
result of the continued outreach, the program diverted 1,326 tons of manure in 2013.
Over the years, WM has provided valuable programs including the Santa Clarita Valley
Sharps to meet the unique needs of senior citizens. Senior citizens continue to receive
additional value through special drop off and home delivery programs, providing a
convenient way to responsibly dispose of needles, lancets, syringes and other sharps. In
2013, over 150 Santa Clarita residents participated in the Sharps Home Delivery Program.
• For the past several years, the City of Santa Clarita and Waste Management have partnered
host the annual CArt aRt Competition at the Earth Arbor Day Festival. The art competition
encouraged community members to transform the donated carts into vibrant pieces of art
using paint, art supplies, recycled items, and creativity to increase awareness of reusing and
recycling household items. school groups, clubs, teams, church groups and individual artists
participated and cash prizes were awarded to winners in the following categories.
• Throughout 2013, the City and Waste Management partnered to host a series of Recycling
Rallies at all three of the local libraries as well as the Canyon Country Community Center.
The kids enjoyed learning about recycling and the environment through presentations,
interactive games and giveaways.
• 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 the Santa Clarita River Rally, Santa Clarita Earth
Arbor Day Celebration, Neighborhood Clean Up Events, Newhall Community Center's
Recycling Campaign, local Boy Scout and Girl Scout organizations, sponsorship and support
for the Santa Clarita Sheriffs and Fire Boosters, Gibbons Conservancy, Santa Clarita Garden
Council, and the United Way Poker Tournament.
Revenue Generation Strategy for the City — Street Sweeping:
As part of previous discussions with City Staff, WM is available to explore options to include
street sweeping as part of our franchise agreement. This will allow the City to eliminate current
expenses by potentially incorporating street sweeping services into waste collection fees. The
City will also benefit from the synergies of a single point of contact for contract management and
coordinated service efforts of waste collection and street sweeping.
Pricing and program specifics are available upon request, we look forward to discussing this
program with you further.
As a company, we are dedicated to making a difference for the environment and the unique
needs of the communities that we serve. Thank you for your favorable consideration.
Sincerely,
Julianne Haness
Contract Compliance
Waste Management
Enclosures: Rate Calculations
Correspondence to Joe Montes
Distribution
Travis Lange
Mark Patti
City of Santa Clarlts Calculations For Residential Waste Hauler' Annual Adjustment (FY 2014/2015)
Oct 2011-
Oct 2012-
Cost Category
Weighting
Source
Rate Adjustment Index
Sep 2012
Sep 2013
Change
percent
Weighted
Average
Average
Change
Change
Labor
30%
PPI Waste Collection
pCU5621156211
121.808
123.550
1.742
7.430%
0.43%
Waste Collection
DOE Clean Cities
Alternative Fuel
Quarterly Reports.
Fuel
5%
Report, Compressed
hftpJ/w .afdc,energy.go
2.583
2.700
0.118
4.550%
0.23%
Natural Gas Relative
v/afdGprice_report.html
to Diesel, West
Coast Price
BLS PPI, Industry,
Equipment
15%
Heavy Duty Truck
PCU336211336211
224.933
227.275
2.342
1.041%
0.16%
Manufacturing
BLS CPI All Urban
Consumers, Garbage
Disposal
25%
and Trash Collection,
CUUROOOOSEHG02
401.760
413.409
11.649
2.900%
0.72%
Not Seasonally
Adjusted, US City
Average
BLS CPI All Urban
Consumers, Garbage
All Other
25%
and Trash Collection,
CUUROOOOSEHGO2
401.760
413.409
11.649
2.900%
0.72%
Not Seasonally
Adjusted, US City
Average
Total Standard Methodology
100%
2.26%
Additional PI Per Contract Section
6.5.1
2.50%
Total Rate Increase Factor
4.76%
Agreed Carryover of Deferred 2013
"All Other"
Component
0.19%
Actual Proposed Adjustment Effective July 1, 2014
4.95%
SECTION 1. Exhibit "T' of the Agreement, entitled "Initial Maximum Rates"
shall be amended to contain the following maximum rates starting on the rate year
commencing July 1, 2014, and ending June 30, 2015:
Standard Service Rate $21.19 per month
Reduced Rate for no Greenwaste services $19.19 per month
Reduced Rate for Super Saver/Senior/Lifeline Customers $16.96 per month
Mobile Home Service Rate $15.91 per month
The Multi -Family rates will be as follows:
Container
Size
1
2
$18.79 per set per month
Number of Weekly Pickups
3 4 5
6
Refuse Overage Extra Pickup
7
Locking Bin
1.5 yd;
$63.89
$127.81
Extra Bulky Item Pickup
$191.70
$255.57
$319.48
$383.38
$44.61 per empty
$447.28
2x comparable bin rate
2 yd'
$68.11
$136.20
$89.24 per hour
$204.32
$272.44
$340.53
$408.62
$476.74
3 yd'
$76.53
$153.01
$229.57
$306.08
$382.58
$459.11
$535.63
4 yd'
$84.92
$169.88
$254.79
$339.70
$424.65
$509.60
$594.51
Special Services
Costs
Street Litter Carts
$18.79 per set per month
Restart Charge
$19.11
Refuse Overage Extra Pickup
$6.38 per pickup
Locking Bin
$12.75 per bin per month
Bulk Billing Discount
8%
Extra Bulky Item Pickup
$25.49 per pickup
Additional Bin Cleanings
$44.61 per cleaning
Extra Bin Empties
$44.61 per empty
Compactor Rates
2x comparable bin rate
Late Fees
1.50% per month
Emergency Services
$89.24 per hour
Manure Collection
1 100% of comparable multifamily bin refuse rat
Prepayment Discount
lone Month Free with 11 month prepaid
91
From: Haness, Julianne <jhaness@wm.com>
Sent: Monday, March 31, 2014 3:45 PM
To: Haness, Julianne
Subject: FW: Santa Clarita 2013 Rate Adjustment
From: Hutton Bill [bill.hutton@huttonlawoffice.com]
Sent: Monday, May 13, 2013 3:44 PM
To: imontes@bwslaw.com
Cc: Pursley, Sandra
Subject: Santa Clarita 2013 Rate Adjustment
Joe,
Thanks for your call
I spoke with WM, and confirmed that it wants to go ahead with approval of the 2013 rate adjustment at the reduced
percentage (assuming 50% of the solid waste collection CPI for the "Other" component). If I heard correctly, that would
mean the adjustment would be 4.31% instead of 4.5%.
However, WM wants to request that, depending on how our inquiry ends, that the City allow a reconciliation of the
Delta (0.19%) as part of the 2014 rate adjustment if warranted.
At a very minimum, WM wants to make it clear that by going ahead with the reduced increase now, it is not waiving its
right to future increases beginning in 2014 using 100% of the solid waste CPI for the "Other" category. WM wants to
conclude the inquiry before making any permanent decisions regarding this rate adjustment component.
Law Offices of E. William Hutton, P.C.
6303 Owensmouth Ave., 10th Floor
Woodland Hills, CA 91367
Tel: (818) 936-3480
Fax: (818) 337-7410
Mobile: (818) 300-7950
E -Mail: bill hutton@huttonlawoffice.com
The contents of this e-mail message, including any attachments, are intended solely for the use of the person to whom
this e-mail was addressed (or intended to be addressed to). It contains information that may be protected by the
attorney-client privilege, work -product doctrine, or other privileges, and may be restricted from disclosure by applicable
state and federal law. If you are not the intended recipient of this message, be advised that any dissemination,
distribution or use of the contents of this message is strictly prohibited. If you received this e-mail in error, please
permanently delete all copies of the e-mail and any attached documentation. Thank you.
15
RESOLUTION 14-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, ADOPTING THE SECOND 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, 2014; 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 "Second Amendment of the Amended and Restated Agreement
Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid
Waste Management Services" (Second Amendment), a copy of which is attached hereto is hereby
approved. The City Manager is authorized to execute the Second Amendment on behalf of the
City.
I�
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 27th day of May 2014.
MAYOR
ATTEST:
INTERIM CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA)
I, Armind Chaparyan, Interim City Clerk of the City of Santa Clarita, do hereby certify
that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at
a regular meeting thereof, held on the 27th day of May 2014, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
INTERIM CITY CLERK
►1
SECOND 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 SECOND AMENDMENT OF THE AMENDED AND RESTATED
AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC
WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE
MANAGEMENT SERVICES, (Second Amendment) is entered into this day
of 2014, 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, 2014; 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.
NOW, THEREFORE, the City and Burrtec in consideration of their mutual
promises, amend the Amended and Restated Agreement as follows:
r
SECTION 1. Exhibit 2 of the Amended and Restated Agreement shall he amended to
contain the following maximum rates commencing July 1, 2014:
SECTION 2. Except as expressly modified in this Second Amendment, all other
provisions of the Agreement are and remain in effect.
(Signatures on next page)
11
Number of Weekl Pickups
Container Size
1
2
3
4
5
6
7
90 -gal Cart
$48.38
$87.07
$145.12
$193.50
$241.88
$290.26
N/A
32 -gal Cart
$43.24
$77.85
$129.74
$172.99
$216.25
$159.51
N/A
1.5 yd3
$67.65
$131.89
$196.16
$259.73
$323.28
$386.87
$450.44
2 yd3
1 $70.38
$137.23
$204.09
$270.27
$336.39
$402.57
$468.72
3 yd3
$76.97
1 $150.07
1 $223.19
$295.56
$367.89
$440.27
1 $512.62
4 yd3
$96.70
$188.59
$280.46
$371.37
$462.28
$553.18
$644.10
6 yd3
$123.69
$241.16
$358.67
$474.92
$591.17
$707.44
$823.69
Number of Weekly Green Waste Pickups
Container Size
1
2
3
4
1 5
1
6
7
3 yd3
$57.72
$112.56
$167.39
$221.67
1 $275.92
1
$330.201
$384.46
Special Services
Costs
Locking Bin
$11.94 per bin per month
Commercial Bulky
Item Pickup
$23.86 per item
Additional Bin Cleanings
$41.78 per cleaning
Extra Bin Empties
$41.78 per bin
Extra Trash Cart Empties
$29.56 per barrel
Compactor Rates
2x comparable bin rate
Late Fees
1.5% per month
Emergency Services
$83.58 per hour
SECTION 2. Except as expressly modified in this Second Amendment, all other
provisions of the Agreement are and remain in effect.
(Signatures on next page)
11
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:
Arming Chaparyan
Interim City Clerk
APPROVED AS TO FORM:
Joseph Montes
City Attorney
16
State of California
) County of _
On
Date
Name(s)
Place Notary Seal Above
BURRTEC WASTE INDUSTRIES, INC.
Bv:
[CEO, President, Chairman of the Board or any
Vice President]
And By:
[The Secretary, any assistant secretary, CFO
or any assistant treasurer]
me,
Here Luen Name and Title of the Orfica
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.
4
S igaature of Notary Public
V
c�
City of Santa Clarita Calculations For Commercial (Burrtec) Waste Hauler's Annual Adjustment (FY 2 01 412 01 5)
Rate Adjustment
Oct 2011-
Oct 2012-
Percent
Weighted
Cost Category
Weighting
Source
Index
Sep 2012
Sep 2013
Change
Change
Change
Average
Average
Labor
30%
PPI Waste Collection
PCU5621156211
121.8
123.6
1.8
1.48
0.444
Waste Collection
DOE Clean Cities
Quarterly Reports.
Alternative Fuel Report,
http://www.afdc.en
Fuel
5%
Compressed Natural
2.58
2.70
0.12
4.65
0.233
Gas Relative to Diesel,
ergy.gov/afdc/price
West Coast Price
_report.html
BLS PPI, Industry,
Equipment
15%
Heavy Duty Truck
PCU336211336211
224.9
227.3
2.40
1.07
0.161
Manufacturing
BLS CPI All Urban
Consumers, Garbage
Disposal
34%
and Trash Collection,
CUUROOOOSEHG02
401.76
413.41
11.60
2.90
0.986
Not Seasonally
Adjusted, US City
Average
50% of BLS CPI All
Urban Consumers,
All Other
16%
Garbage and Trash
CUUROOOOSEHG02
401.76
413.41
11.60
2.90
0.232
Collection, Not
Seasonally Adjusted, US
City Average
Total Standard Methodology
100%
2.056
Previously Approved
Council Approved on
2.475
Extraordinary Adjustment
May 24, 2011
Total Rate Adjustment
4.53
BURRTEC
WASTE INDUSTRIES, INC.
"We'll Take Care Of It"
February 27, 2014
Mark Patti
City of Santa Clarita
23920 Valencia Blvd
Santa Clarita, CA 91355
Dear Mr. Patti:
Pursuant to the City of Santa Clarita's Agreement for Commercial Solid Waste
Management Services, Burrtec respectfully requests a 4.514% adjustment to the
commercial rates effective July 1, 2014. The rate adjustment is comprised of the
2.475% extraordinary adjustment that was previously approved by the City Council
and a 2.039% annual adjustment.
Enclosed please find rate worksheets that include the following:
a) The adjustment methodology calculations called out in the Agreement
utilizing the cost categories, indices reference and weighting required.
b) An adjustment that includes extraordinary increase.
c) The Rate component worksheet with the new rates.
d) Miscellaneous fees worksheet.
Thank you for the consideration.
Sincerely,
Richard Nino
Director Municipal Services
cc: Travis Lange, Environmental Services Manager
9890 Cherry Avenue • Fontana, California 92335 • 909-429-4200 • FAX 909-429-4290
0
Burrtec Waste Industries, Inc.
Refuse Rate Adjustment Calculations
City of Santa Ciarita
July 2014
Santa Clarita - 2014 Rate Increase 2-26-14.xisx
Index
Reference
12 -Month
Average
10/1/11-9/30/12
12 -Month
Average
10/1/12-9/30/13
Percentage
Inc / (Dec)
Allowable
Percentage
of Change
Percentage
Change
Weight
Percent
Amount
Labor
PCU56211-56211-
121.8
123.6
1.48%
100%
1.48%
30%
0.444%
Fuel DOE West Coast CNG
2.32
2.42
4.31%
100%
4.31%
5%
0.216%
Equipment
PCU336211336211
224.9
227.3
1.07%
100%
1.07%
15%
0.161%
Disposal
CUUROOOOSEHG02
401.760
413.409
2.90%
100%
2.90%
34%
0.986%
All Other
CUUROOOOSEHG02
401.760
413.409
2.90%
50%
1.45%
16%
0,232%
Total
100%
2.039%
Approved Extraordinary
Rate Increase for July 1, 2014
2.475%
Total Rate Increase
4.514%
Santa Clarita - 2014 Rate Increase 2-26-14.xisx
Burrtec Waste Industries, Inc.
Refuse Rate Adjustment Calculations
City of Santa Clarita
July 2014
N Santa Clarita - 2014 Rate Increase 2-26-14.xlsx
PCU56211-
DOE West
PCU336211
CUUR0000
56211-
Coast CNG
336211
SEHG02
Month
Oct -11
121.5
$
2.42
221.3
397.106
Nov -11
121.4
223.0
398.910
Dec -11
120.9
223.7
398.720
Jan -12
121.3
$
2.38
224.1
398.880
Feb -12
121.6
224.6
400.381
Mar -12
122.3
224.5
401.692
Apr -12
122.5
$
2.22
225.2
400.913
May -12
1222
225.3
401.067
Jun -12
121.8
226.6
402.793
Jul -12
121.7
$
2.24
226.7
406.243
Aug -12
122.1
227.1
406.823
Sep -12
122.4
227.1
407.594
12 -month average
121.8
$
2.32
224.9
401.760
Month
Oct -12
122.6
$
2.41
226.7
409.495
Nov -12
122.7
226.4
410.155
Dec -12
122.5
227.1
410.416
Jan -13
123.3
$
2.39
227.1
411.126
Feb -13
123.5
227.2
411.805
Mar -13
123.8
227.4
412.305
Apr -13
124.0
$
2.46
227.6
413.675
May -13
123.5
227.2
414.511
Jun -13
123.6
227.4
414.802
Jul -13
123.8
$
2.43
227.5
416.505
Aug -13
124.5
227.7
417.760
Sep -13
124.8
228.0
418.357
12 -month average
123.6
$
2.42
227.3
413.409
Percent Change
1.48%
4.31%
1.07%
2.90%
N Santa Clarita - 2014 Rate Increase 2-26-14.xlsx
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet
Santa Clarita - 2014 Rate Increase 2-26-14.xlsx 2 r n
2013
Rate Components
2014
Rate Components
4.400%
4.514%
10,00%
CPI
10.00%
CPI
Bin
Net to
Franchise
Total
Net to
Franchise
Total
Size
F reg
Burrtec
Fee
Rate
Burrtec
Fee
Rate
1.5
1
$58.25
6.47
$64.72
$60.88
6.76
$67.64
1.5
2
$113.55
12.62
$126.17
$118.68
13.19
$131.87
1.5
3
$168.89
18.77
$187.66
$176.52
19.61
$196.13
1.5
4
$223.62
24.85
$248.47
$233.72
25.97
$259.69
1.5
5
$278.34
30.93
$309.27
$290.91
32.32
$323.23
1.5
6
$333.09
37.01
$370.10
$348.13
38.68
$386.81
1.5
7
$387.83
43.09
$430.92
$405.33
45.04
$450.37
2
1
$60.60
6.73
$67.33
$63.33
7.04
$70.37
2
2
$118.15
13.13
$131.28
$123.49
13.72
$137.21
2
3
$175.72
19.53
$195.25
$183.65
20.41
$204.06
2
4
$232.70
25.86
$258.56
$243.21
27.02
$270.23
2
5
$289.63
32.18
$321.81
$302.71
33.63
$336.34
2
6
$346.61
38.51
$385.12
$362.25
40.25
$402.50
2
7
$403.57
44.84
$448.41
$421.78
46.87
$468.65
3
1
$66.27
7.36
$73.63
$69.25
7.70
$76.95
3
2
$129.21
14.36
$143.57
$135.04
15.01
$150.05
3
3
$192.17
21.35
$213.52
$200.84
22.32
$223.16
3
4
$254.47
28.28
$282.75
$265.96
29.55
$295.51
3
5
$316.75
35.20
$351.95
$331.06
36.78
$367.84
3
6
$379.07
42.12
$421.19
$396.18
44.02
$440.20
3
7
$441.36
49.04
$490.40
$461.29
51.25
$512.54
4
1
$83.26
9.25
$92.51
$87.02
9.67
$96.69
4
2
$162.38
18.04
$180.42
$169.70
18.86
$188.56
4
3
$241.48
26.83
$268.31
$252.38
28.04
$280.42
4
4
$319.75
35.53
$355.28
$334.19
37.13
$371.32
4
5
$398.02
44.23
$442.25
$415.99
46.22
$462.21
4
6
$476.29
52.92
$529.21
$497.79
55.31
$553.10
4
7
$554.57
61.62
$616.19
$579.60
64.40
$644.00
6
1
$106.50
11.83
$118.33
$111.30
12.37
$123.67
6
2
$207.64
23.07
$230.71
$217.01
24.11
$241.12
6
3
$308.82
34.31
$343.13
$322.76
35.86
$358.62
6
4
$408.91
45.43
$454.34
$427.36
47.49
$474.85
6
5
$508.99
56.56
$565.55
$531.97
59.11
$591.08
6
6
$609.10
67.68
$676.78
$636.60
70.73
$707.33
6
7
$709.19
78.80
$787.99
$741.20
82.36
$823.56
Santa Clarita - 2014 Rate Increase 2-26-14.xlsx 2 r n
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet
Santa Clarita - 2014 Rate Increase 2-26-14.xlsx ^ I
2013
Rate Components
2014
Rate Components
4.400%
4.514%
10,00%
CPI
10.00%
CPI
Bin
Net to
Franchise
Total
Net to
Franchise
Total
Size
Freg
Burrtec
Fee
Rate
Burrtec
Fee
Rate
32G
Can
1
$37.23
4.14
$41.37
$38.92
4.32
$43.24
32G
Can
2
$67.03
7.45
$74.48
$70.06
7.78
$77.84
32G
Can
3
$111.71
12.41
$124.12
$116.75
12.97
$129.72
32G
Can
4
$148.94
16.55
$165.49
$155.66
17.30
$172.96
32G
Can
5
$186.19
20.69
$206.88
$194.60
21.62
$216.22
32G
Can
6
$223.43
24.83
$248.26
$233.52
25.95
$259.47
90G
Can
1
$41.65
4.63
$46.28
$43.53
4.84
$48.37
90G
Can
2
$74.97
8.33
$83.30
$78.35
8.71
$87.06
90G
Can
3
$124.95
13.88
$138.83
$130.59
14.51
$145.10
90G
Can
4
$166.60
18.51
$185.11
$174.12
19.35
$193.47
90G
Can
5
$208.26
23.14
$231.40
$217.66
24.19
$241.85
90G
Can
6
$249.91
27.77
$277.68
$261.19
29.02
$290.21
Santa Clarita - 2014 Rate Increase 2-26-14.xlsx ^ I
Burrtec Waste Industries, Inc.
City of Santa Clarita
Rate Component Worksheet - Greenwaste
Santa Clarita - 2014 Rate Increase 2-26-14.xlsx Z�
2013
Rate Components
2014
Rate Components
75.00%
75.00%
10.00%
of Bin
10.00%
of Bin
Bin
Net to
Franchise
Total
Net to
Franchise
Total
Size
Freg
Burrtec
Fee
Rate
Burrtec
Fee
Rate
3
1
$49.70
5.52
$55.22
$51.94
5.77
$57.71
3
2
$96.91
10.77
$107.68
$101.29
11.25
$112.54
3
3
$144.13
16.01
$160.14
$150.63
16.74
$167.37
3
4
$190.85
21.21
$212.06
$199.47
22.16
$221.63
3
5
$237.56
26.40
$263.96
$248.29
27.59
$275.88
3
6
$284.30
31.59
$315.89
$297.13
33.02
$330.15
3
7
$331.02
36.78
$367.80
$345.97
38.44
$384.41
Santa Clarita - 2014 Rate Increase 2-26-14.xlsx Z�
Burrtec Waste Industries, Inc.
City of Santa Clarita
July 2014
Service
Current Rate
July 1, 2014
Proposed Rate
Extra Pick -Up (Bin)
$39.97
$41.77
Extra Pick -Up (Compactor)
$56.69
$59.25
Extra Pick -Up (Barrel)
$28.28
$29.56
Compactor Rates
2x Comparable Rate
2x Comparable Rate
Locking Bins (per bin/per month)
$11.42
$11.94
Additional Bin Cleanings
$39.97
$41.77
Commercial Bulky Item Pickup
$22.83
$23.86
Emergency Services (per hour, 1 person, 1 truck)
$79.96
$83.57
Late Fees (per month)
1.5%
1.5%
Santa Clarita - 2014 Rate Increase 2-26-14.xlsx
M