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Home My WebLink AboutRes2010-063 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE GARBAGE TARIFF WHEREAS, a proposition was placed before the qualified voters of the City at a regular municipal election held on October 3, 2000, and the voters approved a franchise agreement for the collection and disposal of garbage and refuse between the City of Seward and Peninsula Sanitation Company, Inc. ( "Peninsula Sanitation "), which was subsequently assigned to Alaska Pacific Environmental Services Anchorage, LLC ( "APES ") doing business as Alaska Waste — Kenai Peninsula, LLC; and WHEREAS, the City and APES entered into a renewal contract on September 15, 2005 upon approval of Resolution 2005 -79, with said contract set to expire December 31, 2010; and WHEREAS, the current garbage tariff was adopted by Council according to Resolution 2004 -18 which was effective April 1, 2004, and has not been adjusted since then; and WHEREAS, the contract authorizes APES to submit a written request to the City, along with sufficient data on projected revenues and expenses to support its request for an adjustment to the rates, and APES proposes to submit such information to the City Council at a work session held on July 22, 2010; and WHEREAS, APES is requesting an upward adjustment of 25% to all garbage rates in order to offset the increase in costs, including fuel costs, since 2004, and such rates will now be reflected in "Exhibit 2" of the Contractual Agreement for the Collection and Disposal of Garbage, Rubbish and Waste Material in the City of Seward, Alaska. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. Effective January 1, 2011, the City of Seward garbage /refuse rates and charges as set forth in the Utility Tariff are deleted and replaced with the rates and charges attached hereto and incorporated herein by reference. Section 2. This resolution shall take effect ten days following adoption and posting. The rate increase shall take effect on January 1, 2011. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th day of July, 2010. Orr CITY OF SEWARD, ALASKA RESOLUTION 2010 -063 owl THE CITY SEWARD, ALASKA „, d Willard E. Dunham, Mayor AYES: Bardarson, Smith, Shafer, Amberg, Dunham NOES: Valdatta ABSENT: Keil ABSTAIN: None • ATTEST: izg Jea= Lewis M City Clerk (City Seal) qw pw J '9 Rm"�� ` X 1 , 1 .. O e.� E pie f!I rn x. , s . . n � 7 *fib 0 i. 4 I i : r i: S ° , sod Council Agenda Statement Meeting Date: July 26, 2010 {of sptq Through: Phillip Oates, City Manager o From: Kristin Erchinger, Finance Director l AswP Agenda Item: Tariff rate increase for the collection and disposal of garbage and refuse BACKGROUND & JUSTIFICATION: The City of Seward, through its Charter and its Code of Ordinances, provides for the collection and disposal of garbage and rubbish. To that end, the City previously applied for, and was granted, a Certificate of Public Convenience and Necessity by the Regulatory Commission of Alaska, for its refuse utility (Certificate U- 99 -22). Since at least the early 1970s, the City has utilized a private contractor to provide refuse services in Seward. The current garbage tariff was adopted by Council according to Resolution 2004 -18 which was effective April 1, 2004, and has not been adjusted since then. APES is requesting an upward adjustment of 25% to all garbage rates in order to offset the increase in costs, including fuel costs, since 2004, and such rates will now be reflected in "Exhibit 2" of the Contractual Agreement for the Collection and Disposal of Garbage, Rubbish and Waste Material in the City of Seward, Alaska. Refuse rates in Seward have been increased two times since 1991, under previous contractors. In 2002, the residential rate (for the first two standard containers, one pick -up per week) rose from $10.85 to $15.94 per month (47 %), and then to $17.22 per month in 2004 (8% increase). This reflects an average annual increase in refuse rates since 1991 of 3% or $0.34 per year. Rates have not increased in the past six years under APES. The contract being reviewed by council authorizes APES to submit a written request to the City, along with sufficient data on projected revenues and expenses to support its request for an adjustment to the rates, and APES proposes to submit such information to the City Council at a work session held on July 22, 2010. Proposed Changes in Contract: The new proposed contract is for a period of only one year, and includes a proposed rate increase of 25 %, bringing the residential rate to $21.53. The purpose of the shortened contract is to provide time for the City and APES to address additional issues, such as APES' request to include an automatic rate escalation annually based on the consumer price index, as well as their request to adopt a fuel surcharge which would fluctuate monthly in a manner similar to the City's electric utility charges. APES would also like to initiative community forums to assess potential interest in developing a Recycling and Waste Management Plan to include initiatives such as recycling, grease collection, bear- resistant containers, alternative collection container systems, and the associated capital requirements of these potential initiatives. APES expects to undergo upgrades to its equipment fleet in the near future, which they anticipate will result in future rate increases. However, prior to investing in such upgrades, they desire to better understand the needs of the community as it relates to recycling efforts going forward. Heretofore, the City of Seward has done the billing for refuse service within the Seward Public Utility service area, for a fee equal to 12.5% of gross revenues. Under the new contract, APES proposes to assume responsibility for their own billing. The City will reduce its billing fee from 12.5 %, to a franchise fee of 3 %, to compensate the City for maintenance and use of its roads and alleys, per Seward City Charter § 13.5(7). Based on estimated gross revenues of $504,000 in 2010, the City's fee will decline from $63,000 to $15,120, or a total reduction of $47,880. The City administration recommends approving an increase in tariff rates for the collection and disposal of garbage and refuse. CONSISTENCY CHECKLIST: Where applicable, this tariff increase is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: ATTORNEY REVIEW: YES X No FISCAL NOTE: Approval of increase will result in an increase in customer rates of 25% across - the - board, and a reduction in City revenues of $47,880, based on the contractor assuming responsibility for billing for refuse services and the City's collection of a 3% franchise fee. It further authorizes annual rate reviews, whereby the Seward City Council is required to approve refuse rates charged by the contractor. Approved by Finance Department: v� RECOMMENDATION: Council approve Resolution 2010 approving an increase in tariff rates for the collection and disposal of garbage and refuse with Alaska Pacific Environmental Services Anchorage, LLC. '3 EXHIBIT 2 SCHEDULE OF YEAR 2010 FEES REFUSE COLLECTION RATES IN SEWARD SERVICE CHARGE FOR CONTAINERS Monthly Charge CONTAINER SIZE 1 x MO, 1 X WEEK 2 X WEEK 3 X WEEK 4 X WEEK 5 X WEEK 6 X WFFK ,SPFCIAI. 2.0 but less than 2.5 yd. $12.61 $54.60 $109.20 $163.79 $218.39 $272.99 $327.59 $25.21 2.5 yd but less than 3 yd. $19.48 $84.35 $168.70 $253.05 $337.40 $421.75 $506.10 $38.96 3 yd but less than 4 yd. $22.40 $96.98 $193.95 $290.93 $387.91 $484.89 $581.86 $44.79 4 yd but less than 5 yd. $25.63 $110.95 $221.90 $332.84 $443.79 $554.74 $665.69 $51.25 5 yd. but less than 6 yd. $30.75 $133.16 $266.33 $399.49 $532.64 $665.80 $798.96 $61.50 6 yd. but less than 8 yd. $35.38 $153.15 $306.30 $459.46 $612.61 $765.76 $918.91 $70.74 8 y d . $47.99 $207.81 $415.61 $623.43 $831.23 $1,039.04 $1,246.85 $95.99 COMMERCIAL, CAN SERVICE Monthly Charge NO. PICKUPS PER WEEK First Two Additional Drive Out and Pack Containers Containers Out Service per Month 1 $21.53 $1.54 per pickup $18.96 2 $43.04 $1.54 per pickup $37.94 3 $64.56 $1.54 per pickup $56.90 4 $86.08 $1.54 per pickup $75.88 5 $107.60 $1.54 per pickup $94.85 6 $129.11 $1.54 per pickup $113.80 RESIDENTIAL, SERVICE. Monthly Charge for One Time Per Week Service First Two Cans or Two 32 gal bpc* or One 96 gal bpc* One 64 gal bpc* One 96 gal bpc* w /cart Additional Cans Pack Out Single Family or Apartment 21.53 32.29 41.04 $1.54 per pickup $18.96 ROLL -ON /ROLL -OFF CONTAINER SERVICE $135.00 PER HOUR Time and Equipment rates apply to special pickups TIME AND EQUIPMENT RATES One Truck and One Person: $135.00 per hour One Truck and Two Persons: $175.50 per hour Special Pickups: 1.5 times the regular hourly rate (After 5:00 p.m. and before 8:00 a.m. and anytime on Saturday, Sunday or holidays) Minimum Charge: 1/2 Hour at the applicable rate Maintenance of Pick Up Area: $13.50 minimum charge Extra Yardage: $6.00 per cubic yard * bpc = Bear Proof Can Effective: October 1, 2010 h! REFUSE CO Ao0(1 . gale's LLECTION RATES' SEWARD I I . SERVICE CHARGE FOR CONTAINERS Monthly Charge . IN LK INTAINER SIZE 1 x MO. 1 X WEEK 2 X WEEK WEEK WEEK W W SPECIAL but Tess than yd. i $10.09 $43.6811 $87.36 $131.03 $174.71 $218.39 $262.07 $20.17 /2 yd but Tess n 3 yd. 11 $15.5811 $67.4811 $134.9611$202.441$269.92 $337.40 $404.88 $31.17 d but less n 3.9 yd. $17.9211 $77.5811 $155.161$232.74 $310.33 $387.91 $465.49 $35.83 d but less n 4.9 d. $20.5011 $88.761 $177.52 $266.271$355.03 $443.791$532.55 $41.00 Y II d. but less n 5.9 d. $24.601 $106.53 $213.06 $319.59 $426.111$532.64 $639.17 $49.20 Y II d. but less n 7.9 yd. II $28.3011 $122.521 $245.04 $367.571$490.09 $612.61 $735.13 $56.59 d. (1 $38.3911 $166.2511 $332.4911$ 498. 7411$664.9811$831.2311$997.4811 $76.791 COMMERCIAL CAN SERVICE Monthly Charge 1. PICKUPS PER WEEK 1ST 2 ADDTL DRIVE OUT & PACK CONTAINERS CONTAINERS OUT SVC PER MO 1 I $17.2211$1.23 per pickup it $15.171 2 ( $34.4311$1.23 per pickup 11 $30.351 3 1 $51.6511$1.23 per pickup 0 .$45.521 4 1 $68.8611$1.23 per pickup 0 $60.701 5 1 $86.0811$1.23 per pickup 11 $75.881 6 1 $103.2911$1.23 per pickup 11 $91.041 RESIDENTIAL SERVICE i , Monthly Charge ddential TWO 1st 2 cans addtl cans pack out Igle Family 11 $17.2211$1.23 per pickup 11 $15.171 artment 1[ $17.2211$1.23 per pickup 11 $15.171 ROLL -ON /ROIL -OFF CONTAINER SERVICE $108 PER HOUR Time and Equipment rates apply to special pickups L i ) TIME AND EQUIPMENT RATES per hour One Truck and One Person: $108 P One Truck and Two Persons: $140.40 per hour Special Pickups: 1.5 times the regular hourly rate '(after 5:00 p.m. and before 8:00 a.m. and anytime on Saturday, Sunday or holidays) Minimum Charge: 1/2 Hour at the applicable rate Maintenance of Pick Up Area: $10.80 minimum charge Extra Yardage: $4.80 per cubic yard Effective: April 1, 2004 1 1 1 1 1 1 1 r ,�