Resolution 2023-XX Page 1 of 10
RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT ADOPTING THE CITY’S MIXED MUNICIPAL WASTE SERVICE FEE AT
THE RECYCLABLES DIVERSION AND TRANSFER STATION
COMMENCING JANUARY 1, 2024
_____________________________________________________________________
WHEREAS, the City of Fremont (“City”) entered into a contract with BLT Enterprises of Fremont Inc., ("Company"), for receipt, processing, transfer and disposal of municipal solid waste, effective April 20, 2004, at the Fremont Transfer Station; and
WHEREAS, incorporated into the aforementioned contract are Exhibits 1 and 2 establishing the negotiated rates between the City and the Company for the receipt, processing, transfer and disposal of municipal solid waste known as the “Mixed Municipal Waste Service Fee”; and
WHEREAS, the City agreed to adjust the Mixed Municipal Waste Service Fee biennially over the Base Term to reflect changes in the Consumers Price Index (“CPI”), OPIS fuel index and regulatory fee changes as provided in Article 10 of the aforementioned contract and these revised Mixed Municipal Waste Service Fees will be in effect from January 1, 2024 to December 31, 2025; and
WHEREAS, Liquidated Damages fees and Host fees are adjusted biennially over the Base Term to reflect change in the CPI of the All Urban Consumers Index as provided in Article 10 of the aforementioned contract; and
WHEREAS, a health insurance index has been incorporated into the 2022/2023 rate adjustments and is reflected in Exhibits 1 and 2; and
WHEREAS, the City agreed to an extraordinary rate adjustment to Company for health insurance costs and a wage increase for facility workers consistent with the wage schedule agreed to by Company and the International Longshore and Warehouse Union (“ILWU”) in December 2014 and which was subsequently incorporated by amendment into the transfer station contract between the City and Company (Exhibit 16); and
WHEREAS, the ILWU wage schedule expired on December 31, 2019, and therefore, the Wage Component –facility (ILWU) has been adjusted by the CPI of the All Urban Consumers Index as provided in Article 10 of the aforementioned contract increase, incorporated into the 2024/2025 rate adjustments, and reflected in Exhibits 1 and 2; and
WHEREAS, there may be adjustments to the Local Enforcement Agency (LEA) Inspection Fee or the regulatory fees included in the landfill disposal component of the rates during the two-year rate setting period which are unknown at the time of adoption of this resolution, and therefore the City Council intends to authorize the City Manager or designee to incorporate those revised fees into Exhibits 1 and 2 when the exact amount of those regulatory fee increases are known; and
Resolution 2023-XX Page 2 of 10
WHEREAS, the demolition debris self-haul base rates include a $7.09 per ton fee and all other self-haul rates include a $5.00 per ton fee for waste reduction and material diversion program costs that Contractor will remit to the City as part of the monthly reconciliation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FREMONT DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council adopts the attached revised Exhibit 1 and Exhibit 2 to the Agreement Between the City of Fremont and BLT Enterprises of Fremont, Inc. for Recyclables Diversion and Transfer Services;
SECTION 2. The City Council authorizes the City Manager to incorporate any adjusted regulatory fee increases into revised Exhibits 1 and 2 when those increased rates are known; and
SECTION 3. The City Council adopts the liquidated damages amounts shown in revised Exhibit 10 to the Agreement Between the City of Fremont and BLT Enterprises of Fremont, Inc. for Recyclables Diversion and Transfer Services.
ADOPTED , by the City Council of the City of Fremont by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
Resolution 2023-XX Page 3 of 10
EXHIBIT 1
MIXED MUNICIPAL WASTE SERVICE FEE
JANUARY 1, 2024-
DECEMBER 31, 2025
The Mixed Municipal Waste Service Fee and its components are presented in this Exhibit for four service fee scenarios related to the City of Fremont’s Mixed Municipal Waste delivered to the Facility. All Mixed Municipal Waste Service Fee information shall be adjusted periodically in accordance with Section 10.03 of the Agreement.
Service Fee Component
City of Fremont’s
Mixed Municipal Waste Facility Fee
Fremont
Only
Fremont and
Newark
Fremont and
Union City
Tri-Cities
Equipment component – transfer 2.82 2.82 2.82 2.82
Fixed component –other 13.26 13.11 12.29 12.20
Variable component – transfer 2.92 2.90 2.91 2.91
Variable component –other 2.89 2.48 2.56 2.46
Wage component - transfer 8.97 8.98 8.93 8.91
Wage component - facility 20.49 17.93 18.42 17.91
Health Insurance component 8.78 8.22 8.33 8.23
Fuel Component 2.33 2.33 2.33 2.33
Disposal Component (1) 32.89 32.86 32.86 32.82
Alameda County LEA inspection
Fee
0.33 0.33 0.33 0.33
Fuel Tax – transfer 0.91 0.91 0.91 0.91
Total Service Fee/ Ton $96.59
$92.87 $92.69 $91.83
Miscellaneous Fees
Host Fee – franchise tonnage from Newark & Union City $10.80/ton Host Fee – self haul tonnage charged per ton $12.70/ton Host Fee – self haul tonnage charged per load
Host Fee – divertible recycling per ton
Host Fee – recyclable rich materials
$5.59/load
$6.92/ton
$3.64/ton
Contractor compensation for extended Facility Receiving Hours $507.13/hour Amount regarded as Significant $34,647.69
Report preparation costs considered in Section 8.11.b.3. $10,148.17 Waste Characterization – Standard $4,672.79
Waste Characterization – Single Load $1,246.07
(1) 88% of City Council approved landfill disposal rate
Dry Mixed Materials Processing Fee
0-30% residual level = no fee
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30.01-35% residual level = $32.59/ton
35.01-40% residual level = $46.93/ton
40.01-45% residual level = $63.73/ton
45.01-50% residual level = $79.66/ton
Commercial Food Waste
Commercial Food Waste Bypass Fee = $33.70/ton
Commercial Food Waste Transfer Fee = $33.70/ton
High Value Commercial Recyclables Compensation
Material Composition Payment/Ton to City Processing fee
85% or more high value commercial recyclables* suspended $0/ton 80-84.99% high value commercial recyclables* $0/ton $0/ton 75-79.99% high value commercial recyclables* $0/ton $50.18/ton
74.99% or less high value material - dry mixed material processing fees apply
High Value Commercial Recycling Extraordinary Adjustment (2) $14.53/ton
(2) Extraordinary adjustment applies to material delivered in the categories marked with *
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EXHIBIT 1 a
BIENNIAL ADJUSTMENT TO HIGH VALUE COMMERICAL RECYCLABLES COMPENSATION
High Value Commercial Recycling Extraordinary Adjustment
Current High Value Commercial Recycling Extraordinary Adjustment $12.18 MMW Service Fee ILWU Wage Component Adjustment $ 1.61 MMW Service Fee Health Insurance Component Adjustment $ .74 Revised High Value Commercial Recycling Extraordinary Adjustment $14.53
This fee is applicable unless the High Value Commercial material is charged at the MSW rate.
The biennial per ton increase calculated for the ILWU wage and health components of the Mixed Municipal Waste Service Fee shall also be applied to the High Value Commercial Recycling Extraordinary Adjustment
Resolution 2023-XX Page 6 of 10
EXHIBIT 1 b
EXAMPLE BIENNIAL ADJUSTMENT CALCULATIONS
Mixed Municipal Waste Service Fee
Component
Adjustment Index
Used Current Fee
Most Recent
Index
Prior
Index
Adjusted
Fee(4)
Equipment
Component –
transfer CPI $ 2.57 340.056
309.487 $ 2.82
Fixed Component
– other no adjustment $ 12.20 n/a n/a $ 12.20 Variable
Component –
transfer CPI $ 2.65 340.056 309.487 $ 2.46 Variable
Component –
other CPI $ 2.24 340.056 309.487 $ 2.24 Transportation
Wage Component CPI $ 8.11 340.056 309.487 $ 8.91 Facility Wage
Component CPI $ 16.30 340.056 309.487 $ 17.91 Health Insurance
Component
Health Insurance
Index/CPI floor $ 7.49 340.056 309.487 $ 8.23 Fuel Component OPIS Index $ 1.35 3.7185 2.1509 $ 2.33 Disposal
Component Pass-through $ 31.77 Pass-through $ 32.82 Alameda County
LEA inspection
fee Pass-through $ 0.33 Pass-through $ 0.33 Fuel Tax -
transfer Pass-though $ 0.67 1.4767 1.09505 $ 0.91 Total Service
Fee/Ton $ 85.68 $ 91.83
(4) All components, with the exception of the fixed component, shall be adjusted as follows:
current fee X (most recent index/prior index) = adjusted fee
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EXHIBIT 2
MAXIMUM SELF-HAUL SERVICE FEES
JANUARY 1, 2020– DECEMBER 31, 2021
The maximum Self Haul Service Fees are presented in this Exhibit and shall be adjusted periodically in accordance with Section 10.04 of the Agreement.
Unit Base Host Fee Total Fee
Garbage (minimum charge) (1) Load $ 55.34 $ 5.59 $ 60.93 Garbage Ton $ 118.01 $ 12.70 $130.71
Green Waste/Wood Waste Ton $ 115.91 $ 3.64 $ 119.55
Soil Ton $ 115.91 $ 3.64 $ 119.55
ADC Ton $ 115.91 $ 12.71 $128.62
Asphalt Ton $ 115.91 $ 3.64 $ 119.55
Concrete Ton $ 115.91 $ 3.64 $ 119.55
Concrete with Rebar Ton $ 115.91 $ 3.64 $ 119.55
Demolition Debris Ton $ 118.00 $ 12.71 $130.71
Compacted loads-Mixed Municipal
Waste Ton $ 118.01 $ 12.70 $130.71
Divertible Materials Ton $ 84.07 $ 6.91 $ 90.98
Tree Stumps and Poles Ton $ 115.91 $ 3.64 $ 119.55
Certificate of Destruction
(documents) Ton $ 116.45 $ 12.70 $129.15
Certificate of Destruction
(condemned) Ton $ 116.45 $ 12.70 $129.15
Mattress/Box Spring (per set) (2) Set $ 36.75 N/A $ 36.75 Tires (16 ”or less)
Item* $9.69 N/A $9.69
Tires (>16” & < 21” ) Item* $19.36 N/A $19.36
Tires (Tractor/off road) Item* $32.23 N/A $32.23
Tires (Bulk load) Item* $19.36 N/A $19.36
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White Goods – Base Item* $11.89 N/A $11.89
White Goods – Freon Removal Item* $35.69 N/A $35.69
White Good – Per Mercury Switch Item* $8.44 N/A $8.44
(1) Contractor may round maximum self-haul service fee for permitted materials charged by type to the nearest whole dollar (upward or downward)
(2) Fee collected to facilitate mattress and box spring recycling. Fee applied at $ 16.60 per piece.
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EXHIBIT 10
LIQUIDATED DAMAGES
JANUARY 1, 2022 – DECEMBER 31, 2023
The following liquidated damages shall be levied for Contractor’s failure to meet specific Contractor’s Obligations due to Contractor’s fault during Facility Operations. The amounts for liquidated damages will be adjusted biennially to reflect changes in CPI in the manner described in Article 10.
The Parties acknowledge that consistent, efficient Facility Operation is of utmost importance to the Collection Contractor(s) and the City; that failure to Operate the Facility in accordance with Obligations in the Agreement and failure to allow for Vehicles to efficiently unlo ad at the Facility increase the City’s and/or its Collection Contractor(s)' costs; and the City has considered and relied on Contractor's representations as to its quality of service commitment in entering into this Agreement. The Parties further recognize that quantified standards of performance are necessary and appropriate to ensure consistent and reliable service. The Parties further recognize that if the Contractor fails to fulfill Contractor’s Obligations, the City and its residents and businesses w ill suffer damages and that it is and will be impracticable and extremely difficult to ascertain and determine the exact amount of such damages. Therefore, the Parties agree that the following liquidated damages represent a reasonable estimate of the amou nt of such damages, considering all of the circumstances existing on the date hereto, including the relationship of the sums to the range of harm to the City, Collection Contractor(s), or Disposal Facility Contractor, that reasonably could be anticipated and anticipation that proof of actual damages would be costly or inconvenient.
The Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts listed in the table below for failure to perform the specified events of failure listed in the table due to the Contractor's fault.
In signing this Agreement, the Contractor specifically confirms the accuracy of the statements made in this Exhibit with respect to liquidated damages for all events of failure listed below and the fact that it ha d ample opportunity to consult with legal counsel and obtain an explanation of such liquidated damage provisions at the time that this Agreement was made.
Event
Liquidated Damage
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Failure to request approval from City for use of
Subcontractor in accordance with Section 3.11 of
Contractor’s Obligations as defined in Section 3.11
without consent of City
$1,690.20 per incident
Failure to make records available upon request
$845.10 per request
Failure to submit reports
$84.52 per report per day
Failure to Operate during Facility Receiving Hours
$422.53 per hour
Failure to meet Vehicle Turnaround Guaranty
a. If delay less than 0.5 hours
b. If delay more equal to or more than .5 hour
$54.92 per event
$109.87 per event
After initial waste characterization, acceptance of
Source Separated Recyclable Materials, Source
Separated Yard Waste, or Recyclable Rich Materials
that contain higher quantities of Residue by weight
than allowed by the definition in Article 1 for such
material
$84.52 per ton of excess
residue
Charging greater than Maximum Self Haul Service Fees
for Small Self Haul Customers
$84.52 per incident per
customer
Failure to remedy litter problem following a complaint
within time frame included in Article 8
$422.53 per incident
Receipt of complaint(s) in a given month in excess of
50 total complaints from unrelated complaints for the
given month
$84.52 for every complaint
received above 50 complaints
Failure to maintain complaint log
$253.54 per event