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AGENDA BILL Agenda Item No. 5(C) Date: November 7,201 1 To: El Cerrito City Council From: Garth Schultz, Environmental Analyst Subject: 2012 Integrated Resource Recovery Facility (IRRF) rate options ACTION REQUESTED Approve a recommendation advising Mayor Pro Tern Bill Jones to vote on the City Council's endorsement of "Option 3" for determining Integrated Resource Recovery Facility (IRW rates, otherwise known as) "All But Collection" fees for Calendar Year 2012. ~ACKGROUND/ANALYSIS On October 13, 20 1 1, the West Contra Costa Integrated Waste Management Authority (Authority) conducted a public workshop to discuss IRRF rate options for calendar year 2012. The Authority Board meets each November to set rates for the following calendar year. This year's meeting will be held on November 10, 2012. Although the member agency City Councils are not required to vote on IRRF rate adjustments, Mayor Pro Tem Jones, who is El Cerrito's representative on the Authority Board, has requested this item be placed on the El Cerrito City Council's meeting agenda for direction. The IRRF rates, which the Authority refers to as "All But Collection" fees pay for the following (in order of magnitude): 1) Garbage transfer from Republic Services' Golden Bear Transfer Station in Richmond and final disposal of garbage at landfill; 2) Debt service on the Integrated Resource Recovery Facility (IRRF) building; 3) Green waste composting at the former landfill site in Richmond; 4) Program services and administration by the Authority; and 5) Household hazardous waste facility in Richmond. The Authority has determined that there will be a $1,271,761 revenue requirement for Calendar Year 2012.There are three options for developing the "All But Collection" fees that pertain to the City of El Cerrito (see Attachment 1) to meet the revenue requirement for 2012. Option 1 presents the rates "as calculated," which results in an increase to residential rates and decreases to industrial and commercial rates. Option 2 provides for no rate change for residential and industrial rates, and a decrease to commercial rates. ---PAGE BREAK--- Agenda Item No. 5(C) Option 3 would result in no rate change for commercial and industrial rates, and a decrease to residential rates. Staff is recommending that the City Council endorse the use of Option 3 for the "All But Collection" fees. This recommendation is based the Environmental Services Division's community engagement process related to the current solid waste rates and operations review. From July through September the Division received several comments from El Cerrito residents concerned about high residential solid waste rates in El Cerrito. No comments about high commercial or industrial solid waste rates were received as a part of that process. FINANCIAL CONSIDERATIONS IRRF rates are only one component of the overall bill customers pay for garbage, green waste and recycling collection. Staff will bring any adjustments to the other components of the City's solid waste collection rates and recycling fees to the City Council at a later date. Reviewed by: City Manager Attachment: Calendar Year 2012 IRRF Collection Rate Options - created by WCCIWMA Page 2 ---PAGE BREAK--- Attachment 1 Qptions for Translating the Revenue Requirements into "Post-Collection" Rates For Calendar Year 2012 El Cerrito Residential Commercial Industrial per standard per cubic yd. per ton 35-gallon can per month 9,256 38,662 681 35-gallon cans cu+ yards tons O ~ t i o n I - Rates As Calculated: Proposed 2012 Rates $ 8.67 $ 5.65 $ 135.72 2011 Rates $ 8.31 $ 7.34 $ 140.92 Increase (Decrease) Option 2 - No Rate Change for Residential and Industrial; Decrease in Commercial: Proposed 2012 Rates $ 8.31 $ 6.58 $ 140.92 2011 Rates $ 8.31 $ 7.34 $ 140.92 Increase (Decrease) Option 3 - No Rate Change for Commercial and Industrial; Decrease in Residential: Proposed 2012 Rates $ 8.05 $ 7.34 $ A40.92 201 1 Rates $ 8.31 $ 7.34 $ 140.92 Increase (Decrease) Attachment 4 - II:\IRRF.-~o~ 2Budget 09291 1-NO CAPITAL-No4~01lers.xIsRaIes~Scenarios_EBS ---PAGE BREAK--- CALENDAR YEAR 2012 lRRF TIPPING FEES AND IRRF-RELATED COLLECTION RATES East Bay Sanitary Service - El Cerrito (OPTION 11 I. Calendar Year 2012 IRRF Tipping Fees (Per Ton af Solid Waste) Customer Type Year 2012 Tipping Fees Per Tan El Cerrito Residential and Commercial Waste $ 136.39 El Cerrito Industrial Waste $ 135.72 El Cerrito Mixed Yard Debris and Food Scraps $ 62.50 El Cerrito Wood/Green Waste Box $ 50.34 2011 lncrease % Incr. - $ 145.40 $ (9.01) -6.2% $ 140.92 $ (5.20) -3.7% $ 61.00 $ 1.50 2.5% $ 49.50 $ 0.84 1.7% 11. Calendar Year 2012 IRRF-Related Collection Rates Can Service (based on 9,256 standard 35-gallon cans) No Food Food Total 2011 Increase % Incr. Can Count Revenues Scraps Scraps 2012 20-gallon $ 4.96 $ 5.08 $ (0.12) -2.4% 2,476 $ 12,280.96 35-gallon $ 6.67 $ 2.00 8.67 8.12 0.55 6.8% 6,879 $ 59,640.93 64-gallon 15.86 16.25 (0.39) -2.4% 526 $ 8,342.36 9,881 $ 80,264.25 $ 963,171 .OO To be collected by EBS 961 50.24 Revenue Requirement $ 2,020.76 Over (Under)-collection Bin Service (38,662 cubic yards) Box Service (681 tons) $ 21 8,440.30 Bin Service - Com mercial $ 92,425.32 Box Service - Industrial $1,274,036.62 Total Amount To Be Collected $1,271,761.65 Total Revenue Requirement $ 2,274.97 Over (Under)-coHection Attachment 4 - 9 ---PAGE BREAK--- CALENDAR YEAR 2012 lRRf TIPPING FEES AND IRRF-RELATED COLLECTION RATES East Bay Sanitary Service - El Cerrito (OPTION IA) I. Calendar Year 2012 IRRF Tipping Fees (Per Tan of Solid Waste) Customer Type Year 2012 Tipping Fees Per Ton El Cerrito Residential and Commercial Waste $ 136.39 El Cerrito Industrial Waste $ 135.72 El Cerrito Mixed Yard Debris and Food Scraps $ 62.50 El Cerrito Wood/Green Waste Box $ 50.34 11. Calendar Year 2012 IRRF-Refated Collection Rates Can Service (based on 9,256 standard 35-gallon cans) 201 1 Increase % Incr. - $ 145.40 $ (9.01) -6.2% $ 140.92 $ (5.20) -3.7% $ 61 .OO $ 1.50 2.5% $ 49.50 $ 0.84 1.7% No Food Food Total Scraps Scraps 2012 2011 Increase % Incr. 20-gallon $ 5.28 $ 5.08 $ 0.20 4.00% 35-gallon S 6.44 $ 2.00 8.44 8.1 2 0.32 4.00% 64-gallon 16.90 16.25 0.65 4.00% Bin Service (38,662 cubic yards) Box Service (681 tons) Attachment 4 - I Can Count Revenues 2,476 $ 13,081.20 6,879 $ 58,091.78 526 $ 8,889.40 9,881 $ 80,062.38 $ 960,748.59 To be collected by EBS 961,150.24 Revenue Requirement $ (401.65) Over (Under)-collection $ 21 8,440.3b" 5i" Service - Commercial $ 92,425.32 Box Service - Industrial $1,271,614.21 Total Amount To Be Collected $1,271,761.65 Total Revenue Requirement $ (447.44) Over (Under)-collection ---PAGE BREAK--- CALENDAR YEAR 2012 IRRF FEES AND IRRF-RELATED COLLECTION RATES East Bay Sanitary Service - El Cerrito (OPTION 2) I. Calendar Year 2012 lRRF Tipping Fees (Per Ton of Solid Waste) Year 201 2 Tipping Fees Customer T Y P ~ Per Ton El Cerrito Residential and Commercial Waste $ 135.88 El Cerrito Industrial Waste $ 140.92 El Cerrito Mixed Yard Debris and Food Scraps $ 62.50 . El Cerrito Wood/Green Waste Box $ 50.34 II. Calendar Year 2012 1RRF-Related Collection Rates Can Service (based on 9,256 standard 35-gallon cans) Bin Service (38,662 cubic yards) Box Service (681 tons) 2011 Increase % Incr. - - - $ 145.40 $ (9.52) -6.5% $ 140.92 $ - 0.0% $ 61.00 $ 1.50 2.5% $ 49.50 $ 0.84 1.7% No Food Food Total 201 1 Increase % Incr. Scraps Scraps 2012 - $ 5.08 $ 5.08 $ - 0.00% $ 6.12 $ 2.00 8.12 8.12 0.00% 16.25 16.25 0.00% Attachment 4 - 1 Can Count Revenues 2,476 $ 12,578.08 6,879 $ 55,857.48 526 $ 8,547.50 9,881 $ 76,983.06 $ 923,796.72 To be coltected by EBS 921,610.24 Revenue Requirement $ 2,186.48 Over (Under)-collection $ 254,395.96 Bin Service - Commercial $ 95,966.52 Box Sewice - Industrial $1,274,159.20 Total Amount To Be Collected 1,271,761.65 Total Revenue Requirement $ 2,397.55 Over (Under)-collection ---PAGE BREAK--- CALENDAR YEAR 2012 IRRF TIPPING FEES AND IRRF-RELATED COLLECTION RATES East Bay Sanitary Service - El Cerrito (OPT1ON 31 1. Calendar Year 2012 IRRF Tipping Fees (Per Ton of Solid Waste) Customer Tvpe Year 201 2 Tipping Fees Per Ton Ef Cerrito Residential and Commercial Waste $ 135.88 El Cerrito Industrial Waste $ 140.92 El Cerrito Mixed Yard Debris and Food Scraps $ 62.50 El Cerrito Wood/Green Waste Box $ 50.34 11. Calendar Year 2012 IRRF-Related Collection Rates Can Service (based on 9,256 standard 35-gallon cans) 2011 Increase % Incr. - - - $ 145.40 $ (9.52) -6.5% $140.92 $ - 0.0% $ 61.00 $ 1.50 2.5% $ 49.50 $ 0.84 1.7% No Food Food Total 201 1 lncrease % Incr. Scraps Scraps 2012 - 20-gallon $ 4.92 $ 5.08 $ (0.16) -3.13% 35-gallon $ 5.87 $ 2.00 7.87 8.12 (0.25) -3.1 3% 64-gallon 15.74 16.25 (0.51) -3.1 3% Bin Service (38,662 cubic yards) Box Service (681 tons) Can Count Revenues 2,476 $ 12,184.54 6,879 $ 54,109.83 526 $ 8,280.07 9,881 $ 74,574.44 $ 894,893.33 To be cotlected by EBS 921,610.24 Revenue Requirement $ (26,716.91 ) Over (Under)-collection $ 283,779.08 Bin Service - Commercial $ 95,966.52 Box Service - industrial $1,274,638.93 Total Amount To Be Collected 1,271,761 -65 Total Revenue Requirement $ 2,877.29 Over (Under)-collection Attachment 4 - 1