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Home My WebLink About07222010 City Council Work Session Notes - Refuse Tariff & Franchise daLe omile ip rp, pro WORK SESSION NOTES ON ,,eiat` ' a' rich ' PL,i6k(As4Pt- Purpose: e° Present: Council Members Present: Called by: Time Date `o ************************************************* ****/ Ravi- 4_\jalicL40. alsc1oSec�s( WOf %- i u9 UCS re-164(64S OC) SEWARD CITY COUNCIL REFUSE WORKSESSION JULY 22,2010 Purpose of Meeting The current refuse contract with Alaska Pacific Environmental Services, LLC (APES) expires 12/31/10. Voter approval is required to approve a franchise agreement for refuse services. The last voter approval for refuse franchise was 10/03/2000. Council typically approves a franchise agreement and then seeks voter ratification. Current refuse contract allows contractor to seek rate increase annually. Rates have been increased two times since 1991. In 2002 the residential rates rose 47% ($10.85 to $15.94 per month); in 2004 rates rose 8% ($15.94 to $17.22). APES is requesting a 25%rate increase($17.22 to $21.53). Proposed Actions 1) Council worksession with APES to discuss rate issues and contract issues 2) Council resolution to approve rate increase(7/26/10) 3) Council resolution to approve one-year contract with APES (7/26/10) and to authorize a voter proposition(10/05/10)to approve one-year franchise agreement 4) Ordinance to revise Seward City Code to reflect modifications to container sizes over the years (Aug 2010) 5) Community education over the next year to discuss recycling efforts, cooking oil collection and recycling, alternative container systems,refuse equipment and infrastructure, etc. 6) Contractor will request contract modifications next year to address new equipment needs, fuel adjustment factor, and future automatic rate increases based on CPI. Primary Contract Modifications -. One-year contract only -. 25%rate increase -. Addresses new container sizes for bear-proof cans -. APES will do their own billing and handle customer service issues (City currently establishes new customers, fields complaints and forwards to contractor, and provides billing services at 12.5%rate) -. APES will pay 3% franchise fee -. APES and City agree to convene public forums to address#5 above in 2011 1 4 � City of Seward—Refuse Contract History 1974—City of Seward contracts with Herman Leirer dba Seward Service 01/01/80—Contract with Seward Service (RES80-001). RFP was issued with only one respondent, Seward Service. 01/01/80—Tariff change (RES80-004) 01/15/82—Tariff change(RES81-060) 11/14/83 —Contract with Seward Service (RES83-084). RFP was issued with two respondents. 10/26/87 - Contract with Seward Service (RES87-102). RFP was issued with one respondent, Seward Service. 01/15/88—Tariff change (RES87-107) 01/15/89—Tariff change (RES88-131) 10/23/89—Contract assigned to Jason Enterprises (RES89-193) 1990=Seward Service sold to Jason Enterprises 09/01/90-Tariff change for roll on/roll off carts only(RES90-108) 01/15/91 —Tariff change (RES 91-012) 10/06/92—Voter approval of franchise with Jason Enterprises 01/01/93 —October 11, 1999—Contract with Jason Enterprises 06/22/98—Jason Enterprises sold to USA Waste of Alaska and contract assigned 10/11/99—Contract assigned to Peninsula Sanitation, division of Waste Mgmt, Inc. September, 2000 - City of Seward issued Certificate of Public Convenience &Necessity 10/03/00 -Voter approval of franchise with Peninsula Sanitation Company, Inc., division of Waste Management, Inc. 01/01/01 —Contract with Peninsula Sanitation 01/01/01 -Rate increase (RES 2000-091) 01/26/04—Council worksession-Peninsula Sanitation requests 8%rate increase 1 04/1/04—Refuse rates increase 8% 05/21/05—Contract assigned to Alaska Pacific Environmental Services Anchorage, LLC dba Alaska Waste—Peninsula LLC (expires 12/31/10) 07/22/10—Council worksession—APES request for 25%rate increase Upcoming Refuse Issues: 07/26/10—Refuse Tariff—Rate increase of 25% 07/26/10 -APES Franchise Agreement(one-year) 08/23/10—Proposed Ordinance to changecontainer sizes in City Code,to reflect current standard container sizes 10/05/10—Voters asked to approve Franchise Agreement —SC nok) ele-Ak ca 64'- 01/01/11 —Begin community discussions regardingrecycling, grease collection, alternative container systems, future capital requirements. 2 • • 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 WEEK SPECIAL 2.0 but less than 2.5 yd. $12.61 $54.60 $10920 $163.79 $218.39 $272.99 $327.59 $25.21 2.5 yd but less than 3 yd. $19.48 $8435 $168.70 $253.05 $337.40 $421.75 $506.10 7 $38.96 3 yd but less than4 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 $26633 $399.49 $532.64 $665.80 $798.96 $61.50 6 yd.but less than 8 yd. $35.38 $153.15 $30630 $459.46 $612.61 $765.76 $918.91 $70.74 8 yd. $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 (Atter 5:00 p.m.and before 8:00 am. 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 I,2010 EXHIBIT 2-Amendment No. 1 SCHEDULE OF YEAR 2004 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 WEEK SPECIAL 2.0 but less than 2.5 yd. $10.09 $43.68 $87.36 $131.03 $174.71 $218.39 $262.07 $20.17 2.5 yd but less than 3 yd. $15.58 $67.48 $134.96 $202.44 $269.92 $337.40 $404.88 $31.17 3 yd but less than 4 yd. $17.92 $77.58 $155.16 $232.74 $310.33 $387.91 $465.49 $35.83 4 yd but less than 5 yd. '$20.50 $88.76 $177.52 $266.27 $355.03 $443.79 $532.55 $41.00 5 yd. but less than 6 yd. $24.60 $106.53 $213.06 $319.5f9 $426.11 $532.64 $639.17 $49.20 6 yd. but less than 8 yd. $28.30 $122.52 $245.04 $367.57 $490.09 $612.61 $735.13 $56.59 8 yd. $38.39 $166.25 $332.49 $498.74 $664.98 $831.23 $997.48 $76.79 COMMERCIAL CAN SERVICE Monthly Charge NO.PICKUPS PER WEEK First Two • Additional Drive Out and Pack Containers Containers Out Service per Month 1 $17.22 $1.23 per pickup $15.17 2 $34.43 $1.23 per pickup $30.35 3 $51.65 $1.23 per pickup $45.52 • 4 ' $68.86 $1.23 per pickup $60.70 5 $86.08 $1.23 per pickup $75.88 6 . $103.29 $1.23 per pickup $91.04 • RESIDENTIAL SERVICE Monthly Charge for One Time Per Week Service Residential Type First Two Cans Additional Cans Pack Out Single Family $17.22 $1.23 per pickup $15.17 per month Apartment $17.22 $1.23 per pickup $15.17 per month ROLL-ON/ROLL-OFF CONTAINER SERVICE $108.00 PER HOUR Time and Equipment rates apply to special pickups TIME AND EQUIPMENT RATES One Truck and One Person: $108.00 per hour 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 SCHEDULE OF FEES REFUSE COLLECTION RATES IN SEWARD SERVICE CHARGE FOR CONTAINERS Monthly Charge CONTAINER SIZE 1 X MO 1 X.WK 2 X WK. 3 X WK 4 X WK 5 X WK 6 x WK SPECIAL 2.0 but less than 2.5 yd $ 9.34 $ 40.44 $ 80.88 $ 121.33 $ 161.77 $202.21 $242.65 $ 18.68 over 2.5 but less than 3.0 yd $ 14.43 $ 62.48 $ 124.96 $ 166.20 $249.93 $299.91 $332.40 $ 28.86 over 3.0 but less than 4.0 yd $ 16.59 $ 71:83 $ 143.67 $ 191.08 $287.34 $344.81 $382.16 $ 33.18 over 4.0 but less than 5.0 yd. $ 18.98 $ 82.18 $ 164.37 $218.61 $328.73 $394.48 $437.22 $ 37.96 - 5.0 but less than 6.0 yd. $ 22.78 $ 98.64 $ 197.27 $262.38 $.394.55 $473.46 $524.75 $ 45.56 over 6.0 yd but less than 8.0 yd $ 26.20 $ 1.13.45. $226:89 $301.77 $453.78 $544.54 $603.53. $ 52.40 8 yd $ 35.55 $253.93 $307.86 . $40946 $615.73 $769.66 $818.92 $ 71.10 COMMERCIAL CAN SERVICE Monthly Charge Drive Out and . No.Pickups per Week First Two Containers Additional Containers Pack Out Service 1 $15.94 $1.14 ea.Per,Pickup $14.05 Per Month 2' :.$31.88 . , ,,.. $1.14 ea.Per..Pickup . ._$28.10 Per Month 3 $47.82 : $1.14 ea.Per Pickup: $4216;, Per Month 4 $63.76 $1.14 ea.Per Pickup $5620 Per Month 5 $79.70 $1.14 ea.Per Pickup $70.26 Per Month 6 $95.64 $1.14 ea.Per Pickup $84.30 Per Month RESIDENTIAL CAN SERVICE Monthly Charge for One Time Per Week Service .: Drive,Out and Residence Type First Two Containers Additional Containers Pack Out Service Single Family $15.94 $1.14 ea.Per Pickup $14.05 Per Month Apartment $15.94 $1.14 ea.Per Pickup . $14.05 Per Month ROLL-ON/ROLL-OFF CONTAINER SERVICE $100.00 Per Hour Time and Equipment rates apply to special pickups Time and Equipment Rates I One.Truck and One Person: $100.00 per hour One Truck and Two Persons: $130.00 per hour Special Pickups: (After 5 PM 1.5 Times the Regular Hourly Rate and before 8 AM and anytime on Saturday,Sunday or holidays) Minimum Charge: 1/2 Hour at the Applicable Rate Maintenance of Pick Up Area: $10.00 Mimimun Charge Extra Yardage: $4.44 Per Cubic Yard Seward Garbage/Refuse Collection Tariff Page 5-1 2001 Ratesgarbclerk } -\Lity of Seward, Alaska .). • Utility Tariffs - Legislative History Notes GENERAL CHANGES June 10, 1996 Resolution 96-076 (Setting fees and charges for delinquent accounts) June 12, 2000 Ordinance 00-014 (Adopted rules & rate methodologies to purchase power from qualifying facilities) Mar. 13, 2006 Resolution 06-023 (*Council approved power agreement with CEA which adjusted the demand charge rate, but not by specific resolution. Affected page 2-1. See listed below) ELECTRIC TARIFF Adopted May 11, 1992 Resolution 92-064 Amended November 16, 1992 Resolution 92-186 (Page 2-3) Amended June 18, 1993 Resolution 93-089 Amended March 28, 2000 Resolution 00-029 (Effective 4/1/00) Amended May 22, 2000 Resolution 00-053 Amended June 12, 2000 Ordinance 00-014 (Effective 06/22/00) Amended Dec. 18, 2002 Resolution 02-138 (Effective 1-1-03) *CEA Agr. adjusted demand rates No resolution (Effective 6/1/06) Amended November 9, 2009 Resolution 09-115 (Effective 1/1/2010, 2011) WATER TARIFF Adopted May 11, 1992 Resolution 92-065 Amended June 22, 1992 Resolution 92-113 Amended June 14, 1993 Resolution 93-090 Amended September 27, 1993 Resolution 93-142 (Fire Hydrants) Amended April 24, 1995 Resolution 95-032 Amended April 26, 1999 Resolution 99-048 (ship water) Amended December 8, 2003 Resolution 03-155 (Effective 1/1/04) Amended November 22, 2004 Resolution 04-106 (Effective 01-01-05) + 3s Amended November 10, 2009 Resolution 09-117 (Effective 1/1/2010, 2011) SEWER TARIFF Adopted May 11, 1992 Resolution 92-066 Amended June 22, 1992 Resolution 92-113 Amended June 14, 1993 Resolution 93-091 T Amended December 8, 2003 Resolution 03-155 1 (11" - / Amended November 22, 2004 Resolution 04-105 (Effective 01-01-05) + I S Amended November 13, 2007 Resolution 07-123 (Effective 1/1/08) 5%T Amended November 10, 2009 Resolution 09-118 (Effective 1/1/2010, 2011) GARBAGE/REFUSE TARIFF Adopted May 11, 1992 Resolution 92-067 Adopted August 14, 2000 Resolution 00-085 (Voter approval 10/3/2000) Amended August 28, 2000 Resolution 00-091 Adopted Feb. 23, 2004 Resolution 04-018 (Effective 4-1-04) ' City of Seward Utility Tariff Legislative History Notes Page 6-1 (Last updated November 9 and 10, 2009) rcn+-vraTi sad