CC Resolution No. 16-072 Establishing the Maximum Schedule of Rates and Charges for Nonresidential and Multi-Family Solid Waste Collection Service, Compostable Materials Service and Compactor ServiceRESOLUTION NO. 16-072
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ESTABLISHING THE MAXIMUM SCHEDULE OF RATES AND CHARGES FOR
NONRESIDENTIAL AND MULTI-FAMILY SOLID WASTE COLLECTION
SERVICE, COMPOSTABLE MATERIALS SERVICE AND COMPACTOR SERVICE
WHEREAS, the collection of solid waste, which includes garbage, non-organic
recyclables, organic waste, is determined and declared to be a health, sanitary and
safety measure necessary for the promotion, protection and preservation of the health,
safety and general welfare of the people of the City of Cupertino; and
WHEREAS, the City Council of the City of Cupertino enacted Municipal Code
Chapters 6.24 and 9.16, in part, to meet the City's mandated collection of solid waste
and to satisfy applicable California Integrated Waste Management Act AB 939 and
Assembly Bill 1826 requirements; and
WHEREAS, pursuant to Municipal Code Section 6.24.120 and applicable
statutory authority, the provision of solid waste collection services in Cupertino is
provided by a private solid waste collector pursuant to the terms of an exclusive
franchise; and
WHEREAS, the City does not provide solid waste collection services, rather it
regulates the private solid waste collection industry to protect public health, safety and
welfare and ensure compliance with applicable laws; and
WHEREAS, as part of its regulatory role, pursuant to Municipal Code Section
6.24.150, the City reserved the right to establish a maximum schedule of rates and
charges for all level of solid waste collection services to be rendered by the solid waste
collector in order to avoid an abuse of the franchise rights granted; and
WHEREAS, the solid waste collector is solely responsible for setting and
collecting such rates and charges at a level at or below the approved maximum
schedule; and
WHEREAS, the Franchise Agreement dated May 18, 2010 between the City of
Cupertino and Recology Cupertino for Collection and Processing Recyclable and
Compostable Materials, and the Collection of and Disposal of Garbage awarded the
exclusive franchise to Recology and established a process for Recology to request a rate
adjustment if necessary to cover increased co s ts; and
Resolution No. 16-072
Page2
WHEREAS, the First Amendment of the Franchise Agreement dated September
2, 2014 further provides that a compostable materials rate adjustment will be audited by
the City to establish year 2010 and year 2014 Recology cost and revenue; and
WHEREAS, pursuant to the terms of the Franchise Agreement, as amended, on
August 14, 2015 Recology submitted a written request and documentation in support of
a maximum rate adjustment for nonresidential and multi-family solid waste collection
service, compostable materials service and compactor service, which was subsequently
amended by Recology on June 10, 2016; and
WHEREAS, an independent auditor has evaluated the requested maximum rate
adjustment and made written findings that the requested adjustment is necessary to
cover increased costs of processing organic materials (such as food and landscape
waste) collected at commercial businesses and multi-family developments; and
WHEREAS, the City has determined that the rate increase is exempt from
environmental review pursuant to the exemption in 14 Cal. Code Regs. §15601(b)(3) in
that it can be seen with certainty that there is no possibility that this action will have a
significant effect on the environment because approval of the rate adjustment is an
administrative action and is not an activity subject to CEQA;
WHEREAS, the City Council, using its independent judgment, before taking
action on this Resolution, determines that the action is exempt from CEQA as stated
above;
WHEREAS, each and every nonresidential and multi-family solid waste service
recipient was notified of a public hearing scheduled on the proposed adjustment to the
maximum rate schedule by U.S. mail prior to said public hearing; and
WHEREAS, a public hearing notice regarding the proposed adjtJstment to the
maximum rate schedule was posted on the City's website on June 14, 2016 and
published in a newspaper of general circulation; and
WHEREAS, all documentation to support this maximum rate adjustment was
placed on file with the City Clerk for public inspection and review;
WHEREAS, at its regular meeting on July 5, 2016, the City Council held a duly
noticed public hearing to consider an increase in the maximum schedule of rates and
Resolution No. 16-072
Page3
charges for nonresidential and multi-family solid waste collection service, compostable
materials service and compactor service; and
WHEREAS, at the public hearing, interested persons had the opportunity to
testify regarding the increase in the maximum schedule of rates and charges; and
WHEREAS, the City Council of the City of Cupertino finds and determines as
follows:
1. The above recitals are true and correct and material to the adoption of this
Resolution.
2. After considering the maximum rate adjustment request and
documentation from Recology, the report and findings of the City-directed audit, the
public's written comments and testimony received at this public hearing, and the staff
report and information presented at the hearing, the City Council determines that the
evidence support that the adjustment is needed to cover increased costs, and therefore,
it is appropriate to increase the maximum rate schedule by 5.28%.
3. The maximum rate for each service description, as set forth in the
schedule labeled as Attachment A, which is attached hereto and incorporated by this
reference, represents the effective maximum rate schedule for Nonresidential and
Multi-Family Solid Waste Service, Compostable Materials Services and Compactor
Service.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Cupertino, that:
1. Maximum Schedule of Rates and Charges. The maximum rate schedule
for Nonresidential and Multi-Family Solid Waste Service, Compostable Materials
Services and Compactor Service rates and charges shall be increased 5.28%, effective
July 1, 2016, as is more particularly provided for in Attachment A.
2. Amendment. The Schedule of Approved Maximum Rates in the
Franchise Agreement shall be amended to incorporate the maximum rate schedule
approved by this Resolution.
Resolution No. 16-072
Page4
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 5th day of July, 2016, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Members of the City Council
Chang, Vaidhyanathan, Paul, Sinks, Wong
None
None
None
APPROVED:
~\JLit
Grace Schmidt, City Clerk
SCHEDULE OF APPROVED MAXIMUM RA TES
Recology Maximum Rates for the City of Cupertino
Effective July 1, 2016
TABLEB.2.
NON RESIDENTIAL AND MULTI-FAMILY GARBAGE SERVICE AND
NON RESIDENTIAL AND MULTI-FAMILY COMPOST ABLE MATERIALS
SERVICE*
*Non-Residential & Multi-Family Garbage service and Non-Residential & Multi-Family
Compostable Materials service shall never cost more than the rates for Commercial Garbage
service for the same quantity of material
Service
Description
Frequency
FRONT LOADER CONTAINERS (Monthly Rate):
1.5 CY Container lX Week Service
1.5 CY Container 2X Week Service
1.5 CY Container 3X Week Service
1.5 CY Container 4X Week Service
1.5 CY Container 5X Week Service
I .5 CY Container 6X Week Service
1.5 CY Container Extra Pick-up
2 CY Container IX Week Service
2 CY Container 2X Week Service
2 CY Container 3X Week Service
2 CY Container 4X Week Service
2 CY Container 5X Week Service
2 CY Container 6X Week Service
2 CY Container Extra Pick-up
3 CY Container IX Week Service
3 CY Container 2X Week Service
3 CY Container 3X Week Service
3 CY Container 4X Week Service
3 CY Container 5X Week Service
3 CY Container 6X Week Service
3 CY Container Extra Pick-up
4 CY Container IX Week Service
4 CY Container 2X Week Service
4 CY Container 3X Week Service
4 CY Container 4X Week Service
4 CY Container 5X Week Service
4 CY Container 6X Week Service
4 CY Container Extra Pick-up
Maximum
Rate
$ I47.80
$ 295.65
$ 443.45
$ 591.28
$
$
$
739.IO
886.88
45.84
$ I77.4I
$ 354.74
$ 532.I6
$ 709.49
$ 886.88
$ I,064.26
$ 57.29
$ 236.50
$ 473.0I
$ 709.49
$ 946.04
$ I,I82.53
$ I,4I9.03
$ 62.65
$ 295.65
$ 591.28
$ 886.88
$ I,I82.53
$ I ,478.I9
$ I,773.79
$ 78.I2
Attachment A
TABLEB.2 .
NON RESID ENTIAL AND MULTI-FAMILY GARBAGE SERVICE AND
N O N RESIDENTIAL AND MULTI-FAMILY COMPO STABLE MATERIALS
SE RVICE*
*Non-Residential & Multi -Family Garbage service and Non-Residential & Multi-Family
Compos table Materials service shall never cost more than the rates for Commercial Garbage
service for the same quantity of material
Service Frequ ency Maximum
D escription R ate
6 CY Container lX Week Service $ 413.88
6 CY Container 2X Week Service $ 827.77
6 CY Container 3X Week Service $ 1,241.65
6 CY Container 4X Week Service $ 1,655.53
6 CY Container 5X Week Service $ 2,069.43
6 CY Container 6X Week Service $ 2,483 .32
6 CY Container Extra Pick-up $ 108.71
8 CY Container l X Week Service $ 532 .16
8 CY Container 2X Week Service $ 1,064.26
8 CY Container 3X Week Service $ 1,596.43
8 CY Container 4X Week Service $ 2,128 .55
8 CY Container 5X Week Service $ 2,660.68
8 CY Container 6X Week Service $ 3,192.82
8 CY Container Extra Pick-up $ 140 .60
*P ushout Container 1 X Week Service $ 52.04
Pushout Container 2X Week Service $ 104.36
Pusho ut Container 3X Week Service $ 156.26
Pus hout Container 4X Week Service $ 208.46
Pusho ut Container 5X Week Service $ 260.62
Pusho ut Container 6X Week Service $ 312.90
* Container Pushout charges shall only apply to containers moved more than
25 -feet to get them to the truck.
Key Service (service includes unlocking and locking
receptacle)
COMMERCIAL CART RATE:
Per Cart Pickup
SPECIAL SERVICES:
Steam cleaning and re-delivery of bin
[sha ll be provided once each year without charge],
Furnishing Chains (One Time Only)
$ 57.96
$ 23.49
Commercial $ 99 . 7 4
Multi -Fami ly $ 99.74
LATE CHARGE FEE: 1.2% Per Month Delinquent (Not Compounded)
Service
Description
TABLE B.3.
COMP ACTOR SERVICE
GARBAGE COMPACTOR RATE (Per Cubic Yard) (Monthly
Rate):
COMPACTOR RATE-MIXED RECYCLABLE:
Hauling Only
Per Ton
GARBAGE AND RECYCLING COMPACTOR RA TES
Description
Garbage Compactor Rates Per Yard Per Pull
Mixed Recycling Compactor Rates Per Pull
Mixed Recycling Compactor Rates Per Ton
Amount
$ 41.75
$ 383.27
$ 59.33
Processor
Newby
BFI
BFI
Maximum
Rate
$ 41.75
$ 383.27
$ 59 .33
Dirty
NI A
$ 506.89
$ 89.24
RATES SHALL BE REVISED TO REFLECT ANNUAL RATE ADJUSTMENTS PER THE CPI
FORMULA SPECIFIED IN THE AMENDED FRANCHISE AGREEMENT SEPT '14