ITEM 4. 19
CITY MANAGER' S REPORT
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
ITEM: AUTHORIZE ADJUSTMENT TO THE REPUBLIC
SERVICES SOLID WASTE COLLECTION RATES FOR
FISCAL YEAR 2023- 2024
RECOMMENDATION: Adopt Resolution Authorizing an Increase to Republic Services Collection Rates Based on the
Consumer Price Index for San Francisco- OaklandSan Jose for All Urban Consumers for Fiscal Year 2023- 2024
SUMMARY:
The City of Lathrop is responsible for the collection and the transport of solid waste within City limits. Since 2003, the City has contracted for these services with Lathrop Sunrise Sanitation, now doing business as Republic Services. The Agreement between the City of Lathrop and Republic Services allows for an annual rate adjustment based on the Consumer Price Index for All Urban Consumers ( CPI- U) for the San Francisco- Oakland- San Jose, California area, not to exceed 4%.
On March 22, 2023, Republic Services submitted their annual CPI- U adjustment for commercial and residential rates. The current index is 5. 3% for the upcoming fiscal year beginning July 1, 2023 and is above the maximum threshold established in their contract of 4%. The annual CPI- U increase of 4% would apply to all customer classes.
As part of the established consumer rates, Republic Services collects a franchise fee from all customers to cover the cost of state mandated solid waste outreach.
Franchise fees are remitted to the City and staff uses those funds to maintain compliance with state regulations.
If approved, this item will adjust the annual CPI- U by 4% for the upcoming fiscal year beginning July 1, 2023 in accordance with the contract terms.
BACKGROUND:
The Lathrop Municipal Code Section 8. 16. 090 gives the City the exclusive right and duty to collect and transport solid waste or provide for the collection and transportation thereof within the City limits under such terms and conditions, as it deems necessary for the public health, safety and well- being, and it may contract for the provision of those services.
On October 21, 2003, City Council approved an Agreement between the City of Lathrop and Lathrop Sunrise Sanitation ( Agreement), now doing business as Republic Services, to provide the necessary collection, transportation and disposal of solid waste generated within the City limit and for compliance with the source reduction and recycling elements of the City' s Waste Management Plan.
CITY MANAGER' S REPORT PAGE 2
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES CPI- U ADJUSTMENT FOR FY 2023- 2024
On June 2, 2009, City Council approved Amendment No. 1 to the Agreement with Republic Services extending the contract term for an additional 5 years to June 30, 2014.
On June 2, 2014, City Council approved Amendment No. 2 to the Agreement with Republic Services extending the contract term for an additional 5 years to June 30, 2019.
On June 10, 2019, City Council approved Amendment No. 3 to the Agreement with Republic Services extending the contract term for an additional 5 years to June 30, 2024.
Section 26 of the Agreement provides that collection rates shall be reviewed annually and adjustments to the maximum solid waste collection rates is to be based on the Consumer Price Index for All Urban Consumers ( CPI- U) for the San FranciscoOakland- San Jose, California area, not to exceed 4%.
Seniors citizens currently receive a 25% discount.
On March 22, 2023, staff received a request from Republic Services to adjust their commercial and residential rates. The proposed 4% increase is based on the annual CPI- U 5. 2% percentage change over the last year, ending February 1, 2023. The increase would apply to all customer classes effective on July 1, 2023.
CITY MANAGER' S REPORT PAGE 3
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES CPI- U AD7USTMENT FOR FY 2023- 2024
The rate request is as follows:
STANDARD RESIDENTIAL RATES:
r
Small - 30 al 37. 17 38. 66 1. 49
Medium - 60 al 40. 04 42. 02 1. 62
Lar e - 90 al 45. 46 47. 28 1. 82
SENIOR RESIDENTIAL RATES:
r - i ' • .
Small - 30 al 27. 66 28. 77 1. 11
Medium - 60 al 29. 71 30. 90 1. 19
Lar e - 90 al 33. 53 34. 87 1. 34
MOBILE HOME/ TRAILER PARK R.4TES:
r r r a - r ' . t
Small - 30 al 31. 08 32. 32 1. 24
Medium - 60 al 31. 69 32. 96 1. 27
Lar e - 90 al 36. 46 37. 92 1. 46
SENIOR MOBILE HOME/ TRAILER PARK RATES:
t
Small - 30 al 23. 32 24. 25 0. 93
Medium - 60 al 23. 74 24. 69 0. 95
Lar e - 90 al 27. 16 28. 25 1. 09
COMMERCIAL RATES - CURRENT RATES:
1 Cu. Yd $ 93. 88 $ 143. 08 $ 192. 23 $ 241. 34 $ 290. 51 100 Ibs. 2 Cu. Yd $ 120. 70 $ 185. 41 $ 254. 66 $ 314. 87 $ 379. 58 200 Ibs. 3 Cu. Yd $ 153. 03 $ 244. 54 $ 352. 78 $ 481. 53 $ 610. 39 350 Ibs. 4 Cu. Yd $ 190. 99 $ 314. 87 $ 486. 23 $ 657. 69 $ 826. 00 400 Ibs. 5 Cu. Yd $ 236. 41 $ 454. 20 $ 671. 99 $ 889. 77 $ 1, 080. 79 600 Ibs. 6 Cu. Yd $ 280. 30 $ 546. 92 $ 813. 88 $ 1080. 79 $ 1, 347. 75 650 Ibs.
L . Cart $ 37. 85 N/ A N/ A N/ A N/ A N/ A
CITY MANAGER' S REPORT PAGE 4
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES CPI- U ADJUSTMENT FOR FY 2023- 2024
COMMERCIAL RATES - PROPOSED RATES:
a
1 Cu. Yd $ 97. 64 $ 148. 80 $ 199. 92 $ 250. 99 $ 302. 13 100 Ibs. 2 Cu. Yd $ 125. 53 $ 192. 83 $ 264. 85 $ 327. 46 $ 394. 76 200 Ibs. 3 Cu. Yd $ 159. 15 $ 254. 32 $ 366. 89 $500. 79 $ 634. 81 350 Ibs. 4 Cu. Yd $ 198. 63 $ 327. 46 $ 505. 68 $ 684. 00 $ 859. 04 400 Ibs. 5 Cu. Yd $ 245. 87 $ 472. 37 $ 698. 87 $ 925. 36 $ 1124. 02 600 Ibs. 6 Cu. Yd $ 291. 51 $ 568. 80 $846. 44 $ 1124. 02 $ 1401. 66 650 Ibs.
L . Cart $ 40. 00 N/ A N/ A N/ A N/ A N/ A
Weights in excess of these maximum amounts per bin per pick up will be charged an additional $ 8. 00 per extra 100 pounds.
FISCAL IMPACT:
No fiscal impact at this time. However, pursuant to Section 27 of the Agreement between the City of Lathrop and Lathrop Sunrise Sanitation, now doing business as Republic Services, and Lathrop Municipal Code Section 8. 16. 180, Republic Services shall remit to the City of Lathrop a Franchise Fee of seven ( 7%) percent and a AB939 Recycling Fee of three ( 3%) percent of the gross revenue collected within ten ( 10) days following the completion of each calendar month.
ATTAC H M E NT:
A. Resolution Authorizing an Increase to Republic Services Collection Rates Based on the Consumer Price Index for San Francisco- Oakland- San Jose for All Urban Consumers for Fiscal Year 2023- 2024
B. Letter from Republic Services dated March 22, 2023
CITY MANAGER' S REPORT PAGE 5
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES CPI- U ADJUSTMENT FOR FY 2023- 2024
APPROVALS:
23 To Sebastian Date
Director of Parks, Recreation
Maintena e Services
o,
Cari James Date
Finance Di ctor
C/ Z6 ` r.. z3
Salvador Navarrete Date
City Attorney
s•z•z3
Step en J. Salvatore Date
City Manager
RESOLUTION NO. 23 —
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
AUTHORIZING AN INCREASE TO REPUBLIC SERVICES COLLECTION RATES BASED ON THE CONSUMER PRICE INDEX FOR SAN FRANCISCO- OAKLANDSAN JOSE FOR ALL URBAN CONSUMERS FOR FISCAL YEAR 2023- 2024 WHEREAS, on October 21, 2003, City Council approved an Agreement between the City of Lathrop and Lathrop Sunrise Sanitation ( Agreement), now doing business as Republic Services, to provide the necessary collection, transportation and disposal of solid waste generated within the City limit and for compliance with the source reduction and recycling elements of the City' s Waste Management Plan; and WHEREAS, on June 2, 2009, City Council approved Amendment No. 1 to the Agreement with Republic Services extending the contract term for an additional 5 years to June 30, 2014; and
WHEREAS, on June 2, 2014 City Council approved Amendment No. 2 to the Agreement with Republic Services extending the contract term for an additional 5 years to June 30, 2019; and
WHEREAS, on June 10, 2019, City Council approved Amendment No. 3 to the Agreement with Republic Services extending the contract term for an additional 5 years to June 30, 2024; and
WHEREAS, Section 26 of the Agreement provides that collection rates shall be reviewed annually and any adjustments to the maximum solid waste collection rates is to be based on the Consumer Price Index for All Urban Consumers ( CPI- U) for the San Francisco- Oakland- San Jose, California area, not to exceed 4%; and WHEREAS, on March 22, 2023, staff received a request from Republic Services to adjust their commercial and residential rates pursuant to Section 26 of the Agreement, summarized above; and
WHEAREAS, senior citizens currently receive a 25% discount; and WHEREAS, the current index is 5. 3% for the upcoming fiscal year beginning July 1, 2023 and is above the maximum threshold established in the contract of 4%; and
WHEREAS, as part of the established consumer rates, Republic Services collects a franchise fee from all customers to cover the cost of state mandated solid waste outreach and franchise fees are remitted to the City and staff uses those funds to maintain compliance with state regulations; and
WHEREAS, pursuant to Section 27 of the Agreement between the City of Lathrop and Republic Services and Lathrop Municipal Code Section 8. 16. 180 Republic Services shall remit to the City of Lathrop a Franchise Fee of seven ( 7%) percent and a AB939 Recycling Fee of three ( 3%) percent of the gross revenue collected within ten ( 10) days following the completion of each calendar month; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby authorizes, pursuant to Section 26 of the Agreement, and pursuant to Lathrop Municipal Code Section 8. 16. 170, the City' s franchised solid waste hauler shall not be permitted to charge fees any higher than specified for each customer type listed:
The rate request is as follows:
STANDARD RESIDENTIAL RATES:
r • - e '
s
Small - 30 al 37. 17 38. 66 1. 49
Medium - 60 al 40. 04 42. 02 1. 62
Lar e - 90 al 45. 46 47. 28 1. 82
SENIOR RESIDENTIAL RATES:
i
Small - 30 al 27. 66 28. 77 1. 11
Medium - 60 al 29. 71 30. 90 1. 19
Lar e - 90 al 33. 53 34. 87 1. 34
MOBILE HOME/ TRAILER PARK RATES:
Small - 30 al 31. 08 32. 32 1. 24
Medium - 60 al 31. 69 32. 96 1. 27
Lar e - 90 al 36. 46 37. 92 1. 46
SENIOR MOBILE HOME/ TRAILER PARK RATES:
Small - 30 al 23. 32 24. 25 0. 93
Medium - 60 al 23. 74 24. 69 0. 95
Lar e - 90 al 27. 16 28. 25 1. 09
COMMERCIAL R.4TES - CURRENT RATES:
a
1 Cu. Yd $ 93. 88 $ 143. 08 $ 192. 23 $ 241. 34 $ 290. 51 100 Ibs. 2 Cu. Yd $ 120. 70 $ 185. 41 $ 254. 66 $ 314. 87 $ 379. 58 200 Ibs. 3 Cu. Yd $ 153. 03 $ 244. 54 $ 352. 78 $ 481. 53 $ 610. 39 350 Ibs. 4 Cu. Yd $ 190. 99 $ 314. 87 $ 486. 23 $ 657. 69 $ 826. 00 400 Ibs. 5 Cu. Yd $ 236. 41 $ 454. 20 $ 671. 99 $ 889. 77 $ 1, 080. 79 600 Ibs. 6 Cu. Yd $ 280. 30 $ 546. 92 $ 813. 88 $ 1080. 79 $ 1, 347. 75 650 Ibs.
L . Cart $ 37. 85 N/ A N/ A N/ A N/ A N/ A
COMMERCIAL RATES - PROPOSED RATES:
1 Cu. Yd $ 97. 64 $ 148. 80 $ 199. 92 $ 250. 99 $ 302. 13 100 Ibs. 2 Cu. Yd $ 125. 53 $ 192. 83 $ 264. 85 $ 327. 46 $ 394. 76 200 Ibs. 3 Cu. Yd $ 159. 15 $ 254. 32 $ 366. 89 $ 500. 79 $ 634. 81 350 Ibs. 4 Cu. Yd $ 198. 63 $ 327. 46 $ 505. 68 $ 684. 00 $ 859. 04 400 Ibs. 5 Cu. Yd $ 245. 87 $ 472. 37 $ 698. 87 $925. 36 $ 1124. 02 600 Ibs. 6 Cu. Yd $ 291. 51 $ 568. 80 $ 846. 44 $ 1124. 02 $ 1401. 66 650 Ibs.
L . Cart $ 40. 00 N/ A N/ A N/ A N/ A N/ A
Weights in excess of these maximum amounts per bin per pick up will be charged an additional $ 8. 00 per extra 100 pounds.
The foregoing resolution was passed and adopted this 8t'' day of May 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Attachment B
R7 REpvei c .
SERVlCES
Sustainability in Action
March 22, 2023
Teresa Vargas
Ciry of Lathrop
390 Towne Centre Dr.
Lathrop, CA 95330
Dear Ms. Vargas,
Pursuant to Section 26 of the" Agreement Between the City of Lathrop and Lathrop Sunrise San( tation Corporation" the collection rates shall be reviewed annually during the month of May and adjusted effective July 1. The agreement allows for an adjustment based on the prlor year change in the Consumer Price Index for the San Francisco-Oakland-San Jose, all urban consumer as publfshed by the United States Department of Labor, Bureau of Labor Statistics. The change in the CPI for the period February 1, 2 22, through February 1, 2023 was 5. 396. Per Section 26" Any CPI rate adjustment in any given year shall not exceed 446:' Therefore, the calculation of the change in CPI rate adjustment for the prior year has been adjusted to 496.
Attached please find the proposed new collection rates effective July 1, 2023, with the 446 P rate adjustment. Thank you for the continued confidence in Republic Services of lathrop, as always, we wiil continue to strive to provide professional solid waste services. Should you have any questions, please do not hesitate to cal) me at( 209) 547- 7531.
Sincerely,
Republic Services of Lathrop
Kevin Basso
General Manager
Enclosure
1145 W Charter Way, Stockton, CA 95206 Republic5ervices. com Environmental 5ervices, Recycling& Waste R7 REpvec ca
sFRvlcFs
Lathrop Sunrise Sanitation Rates Effective 7/ 1/ 22 (Current) 2 YD 120. 70 185. 41 254. 66 314.87 379. 58
i
4 YD 190. 99 314. 87 486. 23 657. 69 826. 00
1 i
6 YD 2$ Q. 30 546. 92 813, 88 1, 0$ 0. 79 1, 347. 75
11 Residential Service Weekiy Recyciing and Green Waste 60 gatlon 40. 40 29. 71 31, 69 23. 74
Lathrop Sunrise Sanitation Rates Effective 7/ 1/ 2023
2 YD 125. 53 192, 83 264. 85 327, 46 394. 76
1 4 YD 19$. 63 327. 46 505. 68 664. 00 859. 04
Y 291. 51 568. 80 846. 44 1, 124, 02 1, 401. 66
Residential Service Weekly Recycling and Green Waste
60 gallon 42. 02 30. 90 32. 96 24. 69
1 •, •
Wcights in exccss nf thcse maxirrrurn arnounts per bin per pick t. p will Ue ch< rged an addrtrona!. f1. 00 per extra 900 poun s.
R'
REPve c
SERVlCES
Republic Services
Residential Rate Adjustment
Effective July 1, 2023
Current
Monthly Rate New Rate Eff
Service Category ( 2022) 4% CPI 7/ 1/ 2023
Residential
30 Gallon 37. 17 1. 49 38. 66
60 Galton 40. 40 1. 62 42. 02
90 Gallon 45. 46 1. 82 47. 28
Senior Citizens
30 Gallon 27. 66 1. 11 28. 77
60Gallon 29, 71 1, 19 30. 90
90 Gallon 33. 53 1. 34 34. 87
MHP/ Trailer
30 Gallon 31. 08 1, 24 32. 32
60 Gallon 31. 69 1. 27 32. 96
90 Gallon 36. 46 1, 46 37. 92
MHP Senior
30 Gallon 23. 32 0. 93 24. 25
60 Gallon 23. 74 0, 95 24. 69
90 Gallon 27. 16 1. 09 28. 25
C
REPUBL/ C"
SERVICES
Republic Services
Commercial Rate Adjustment
Effective luly 1, 2023
Current
Monthly Rate
5ervice Category ( 2022) 4% CPI New Rate Eff 7/ 1/ 23
1 yard
1M' eek 93. 88 3. 76 E97. 64
2/ VVeek 143. 08 5. 72 148. 80
3/ Ih'eek 192. 23 7. 69 199, 92
4/ Week 241. 34 9. 65 250.99
5/ Week 290. 51 11. 62 5302. 13
2 yard
1/ Week 120. 70 4. 83 125. 53
2/ Week 185, 41 7, 42 192. 83
3/ Week 254. 66 $ 10. 19 5264. 85
4/ Week 314. 87 $ 12, 59 5327. 46
5/ Week 379. 58 $ 15. 18 5394. 76
3 yard
1/ Week 153. 03 6. 12 5159. 15
2/ YUcek 244. 54 9. 78 254. 32
3/ Week 352. 78 $ 14. 11 3366. 89
4/ Week 481. 53 $ 19. 26 500. 79
5/ Week 610. 39 $ 24. 42 5634. 81
4 yard
1/ Week 190. 99 7. 64 198. 63
2/ Week 314. 87 $ 12. 59 5327. 46
3/ Week 486. 23 $ 19. 45 505. 68
4/ Week 657. 69 $ 26. 31 5684. 00
51Week 826, 00 $ 33. 04 859. 04
5 yard
1/ Week 236. 41 9. 46 5245. 87
2/ Week 454, 20 $ 18. 17 5472. 37
3/ Week 671. 99 $ 26. 58 5698. 87
4/ Week 889. 77 $ 35. 59 925. 36
5/ Week $ 1, 080. 79 $ 43. 23 51, 124. 02
6 yard
1/ Week E280. 30 $ 11. 21 291. 51
2/ Week 546. 92 $ 21. 88 568.80
3/ Week 813. 88 $ 32. 56 846. 44
4/ Week $ 1, 080. 79 $ 43. 23 51, 124. 02
5/ Week $ 1, 347. 75 $ 53. 91 1, 401. 66
90 Gailon
1/ Week 40. 00 1. 6D 41. 60