NVF:RBT:JMD
5/3/2023
T-23823.003/2017912_2 1
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE FIXING AND DETERMINING MAXIMUM
COMMERCIAL SOLID WASTE SERVICES RATES IN THE
CITY OF SAN JOSE PURSUANT TO THE COMMERCIAL
SOLID WASTE AND RECYCLABLE MATERIALS
COLLECTION FRANCHISES AGREEMENT BETWEEN
THE CITY OF SAN JOSE AND ALLIED WASTE SERVICES
OF NORTH AMERICA, LLC DBA REPUBLIC SERVICES
INCLUDING THE TOTAL COSTS FOR ORGANICS
PROCESSING SERVICES, EFFECTIVE JULY 1, 2023
WHEREAS, on June 21, 2011, the City of San José (the “City”) granted exclusive franchises to Allied Waste Services of North America, LLC dba Allied Waste Services of Santa Clara County, currently doing business as Republic Services (“Republic Services”) to provide commercial solid waste and recyclable materials collection from commercial, industrial and institutional waste generators; and
WHEREAS, the Commercial Solid Waste and Recyclable Materials Collection Franchises Agreement (the “Agreement”) fully executed on September 16, 2011 provides that the City shall fix and determine the maximum rates for commercial solid waste services provided through these exclusive franchises; and
WHEREAS, the Agreement sets forth the basis for the adjustment of rates including but not limited to the cost of operation, profit, recyclables and organics processing costs, and government fees; and
WHEREAS, in December 2012, the City Council approved an amendment to the Agreement to provide for the delivery of additional organic waste from businesses to Zero Waste Energy Development Company (“ZWED”); and
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T-23823.003/2017912_2 2
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
WHEREAS, in May 2013, the City Council approved a second amendment to the Agreement that provided a one-time “true-up” adjustment to the revenue requirements in 2013-2014; and
WHEREAS, in May 2015, the City Council approved a third amendment to the Agreement that clarified the rate setting terms and streamlined the rate setting process; and
WHEREAS, the agreement between the City and ZWED for organics processing services sets forth the formula for determining the total processing fee, and requires that the fee be reviewed by the City Council; and
WHEREAS, on May 3, 2016, the City Council adopted Resolution No. 77738 to fix and determine the maximum commercial solid waste services rates in the City effective July 1, 2016; and
WHEREAS, on May 23, 2017, the City Council adopted Resolution No. 78178 to maintain the maximum commercial solid waste services rates adopted in Resolution No. 77738 pending the resolution of a dispute with Republic Services over certain terms of the Agreement that would have had an impact on how the City Council would set the maximum commercial solid waste services rates; and
WHEREAS, in August 2017, the City Council approved a fourth amendment to the Agreement that addressed the applicability of the City’s Living Wage Policy to Recyclery Workers; and
WHEREAS, on August 22, 2017, the City Council adopted Resolution No. 78318 to revise the maximum commercial solid waste rates for the remainder of fiscal year 2017- NVF:RBT:JMD
5/3/2023
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Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
2018 to provide funding to implement the “Recyclery Workers’ Wage” in accordance with the Cooperative Agreement and Fourth Amendment to the Agreement; and
WHEREAS, on May 22, 2018, the City Council adopted Resolution No. 78602 setting the maximum commercial solid waste services rates in the City effective July 1, 2018; and
WHEREAS, on May 21, 2019, the City Council adopted Resolution No. 79099 setting the maximum commercial solid waste services rates in the City effective July 1, 2019; and
WHEREAS, on February 25, 2020, the City Council adopted Resolution No. 79415 authorizing the City Manager to negotiate and execute amended and restated agreements with Republic Services and ZWED to modify the commercial solid waste system and to extend the agreement by five (5) years; and
WHEREAS, the City Council also approved a settlement agreement among the City, Republic Services, International Disposal Corp. of California (Republic Services affiliate), ZWED, and Greenwaste Recovery, Inc. (ZWED affiliate) wherein all parties released any legal claims against each other. The effectiveness of this settlement agreement is contingent on the amended and restated agreements between all parties, which serve as consideration for the settlement; and
WHEREAS, the amended and restated agreements have been executed by ZWED and Republic Services and modifications to the commercial collection system made by the amended and restated agreements went into effect on May 3, 2020; and
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5/3/2023
T-23823.003/2017912_2 4
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
WHEREAS, on May 19, 2020, the City Council adopted Resolution No. 79525 setting the maximum commercial solid waste services rates in the City of effective July 1, 2020; and
WHEREAS, on May 18, 2021, the City Council adopted Resolution No. 80007 setting the maximum commercial solid waste services rates in the City of effective July 1, 2021; and
WHEREAS, on May 17, 2022, the City Council adopted Resolution No. 80503 setting the maximum commercial solid waste services rates in the City of effective July 1, 2022; and
WHEREAS, the City Council wishes to set the maximum commercial solid waste services rates in the City effective July 1, 2023;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
SECTION 1. Effective July 1, 2023, the Maximum Commercial Solid Waste Service Rates that may be charged to customers receiving commercial solid waste and recyclable materials collection service from exclusive franchises shall be as set forth in Exhibit A and including the organics processing cost as set forth in Exhibit B, both of which are attached to and incorporated in this Resolution.
SECTION 2. This Resolution shall supersede Resolution No. 80503.
SECTION 3. The Maximum Commercial Solid Waste Service Rates set forth in this Resolution shall remain effective until they are amended, modified or repealed by a subsequent resolution of the City Council.
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T-23823.003/2017912_2 5
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk
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EXHIBIT A
T-23823.003/2017912_2 A-1
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
MAXIMUM SERVICE RATES FOR COMMERCIAL SERVICE FOR CUSTOMERS EFFECTIVE JULY 1, 2023
A. Maximum Service Rates Per Month for Standard Cart Services:
Dry and Recyclable Materials
Cart Size
(gallons)
Collections Per Week
1 2 3 4 5 6
32 $83.18 $164.25 $245.31 $326.36 $407.42 $488.46
64 $98.96 $195.44 $291.93 $388.36 $484.85 $581.32
96 $123.70 $244.31 $364.87 $485.46 $606.03 $726.63
Wet Material
Cart Size
(gallons)
Collections Per Week
1 2 3 4 5 6
32 $103.96 $205.27 $306.63 $407.95 $509.28 $610.60 64 $123.70 $244.31 $364.87 $485.46 $606.03 $726.63 96 $154.63 $305.36 $456.10 $606.83 $757.57 $908.29
B. Maximum Service Rates Per Month for Standard Bin Services:
Dry and Recyclable Materials
Bin Size
(cubic
yards)
Collections Per Week
1 2 3 4 5 6
1 $190.83 $369.54 $546.47 $725.66 $904.80 $1,081.77
1.5 $208.96 $404.67 $598.41 $794.59 $990.76 $1,184.54 2 $227.10 $439.75 $650.31 $863.52 $1,076.72 $1,287.31 3 $266.53 $514.38 $762.24 $1,015.45 $1,260.63 $1,511.14 4 $305.95 $590.47 $874.96 $1,159.46 $1,444.02 $1,728.54 6 $382.89 $738.98 $1,095.07 $1,454.98 $1,811.07 $2,170.99 8 $463.60 $894.69 $1,325.90 $1,752.40 $2,183.53 $2,614.66
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5/3/2023
EXHIBIT A
T-23823.003/2017912_2 A-2
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Wet Material
Bin Size
(cubic
yards)
Collections Per Week
1 2 3 4 5 6
1 $238.55 $461.95 $683.12 $907.07 $1,131.04 $1,352.20
1.5 $261.21 $505.83 $748.01 $993.23 $1,238.46 $1,480.68 2 $283.88 $549.71 $812.91 $1,079.41 $1,345.87 $1,609.14 3 $333.13 $642.97 $952.84 $1,269.33 $1,575.80 $1,888.96 4 $382.42 $738.05 $1,093.71 $1,449.36 $1,805.03 $2,160.68 6 $478.60 $923.73 $1,368.87 $1,818.73 $2,263.83 $2,713.74 8 $579.49 $1,118.40 $1,657.37 $2,190.50 $2,729.40 $3,268.33
C. Maximum Service Rates for Compactor Service:
Dry and Recyclable Materials: $34.44 per collection per cubic yard
Wet Material: $43.06 per collection per cubic yard
D. Maximum Service Rates for Additional Collections:
1. Maximum Service Rates Per Collection for Extra Cart or Bag Collection
Cart or
Bag Size
(gallons)
Dry and Recyclable Materials
Wet Material
Regular
Collection Day
Non-Regular
Collection Day
Regular
Collection Day
Non-Regular
Collection Day
32 $28.79 $126.99 $36.00 $158.73
64 $34.25 $132.44 $42.80 $165.58
96 $42.80 $141.04 $53.52 $176.27
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EXHIBIT A
T-23823.003/2017912_2 A-3
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
2. Maximum Service Rates Per Collection for Extra Bin Collection
Bin Size
(cubic
yards)
Dry and Recyclable Materials
Wet Material
Regular
Collection Day
Non-Regular
Collection Day
Regular
Collection Day
Non-Regular
Collection Day
1 $57.25 $155.46 $71.58 $194.32
1.5 $62.67 $160.91 $78.35 $201.13
2 $68.13 $166.33 $85.18 $207.93
3 $79.96 $178.21 $99.95 $222.73
4 $91.78 $190.00 $114.73 $237.49
6 $114.89 $213.09 $143.61 $266.35
8 $139.10 $237.29 $173.86 $296.63
3. Maximum Service Rates Per Collection Per Cubic Yard for Compactor Collection
Dry and Recyclable Materials
Wet Material
Regular
Collection Day
Non-Regular
Collection
Day
Regular
Collection Day
Non-Regular
Collection Day
Rate Per
Collection Per
Cubic Yard $44.77 $64.58 $55.97 $80.72
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5/3/2023
EXHIBIT A
T-23823.003/2017912_2 A-4
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
E. Maximum Service Rates for Extra Services:
Type of Service Rate Information Maximum Rate
Hasp & Lock for Cart/Bin
(one time charge)
Per Collection $29.47
Replace Lock Per Collection $68.74
Steam Cleaning Per Collection $98.19
Push/Pull Charge
(per increment of 50 ft)
Per Month, Per Increment of 50 ft,
Per Bin, Per Collection $39.29
Lock/Unlock Charge Per Month, Per Collection $39.29
Cart/Bin Delivery/Pick-Up Extra rate if customer requests a change in cart/bin size more than
once/year $68.74
Cart/Bin Exchange/Replacement
(in the event of damage, service
level change, or other)
Extra rate if customer requires
cart/bin replacement (one
replacement per year at no cost) $68.74
Return Rate Extra rate if customer container is
blocked or unserviceable &
franchisee has to return to provide
service $98.19
Service Interrupt Fee Per Occurrence $58.91
Late Fee After 60 days past due 1.50% of Past
Due Amount
Insufficient Funds Fee Per Occurrence $58.91
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5/3/2023
EXHIBIT A
T-23823.003/2017912_2 A-5
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
F. Maximum Service Rates for Drop Box Services:
1. Regularly Scheduled Roll Off Collection Service (Per Pull/Return, not including initial delivery rate, which is charged separately. Excludes compactors.)
Dry and Recyclable Materials
Receptacle Rate Information Tonnage
Limit
Maximum Rate,
North District
Maximum Rate,
South District
10 cubic yard
roll off Per Pull/Return 2 $648.17 $746.38
20 cubic yard
roll off Per Pull/Return 3 $775.85 $874.04
30 cubic yard
roll off Per Pull/Return 4 $903.51 $1,001.70
40 cubic yard
roll off Per Pull/Return 5 $1,031.19 $1,129.39
Customer Owned
Compactors Per Yard/Pull/Return
0.20 per
yard $38.68 $40.78
Wet Material
Receptacle Rate Information Tonnage
Limit
Maximum Rate,
North District
Maximum Rate,
South District
10 cubic yard
roll off Per Pull/Return 2 $687.45 $785.65
20 cubic yard
roll off Per Pull/Return 3 $834.78 $932.98
30 cubic yard
roll off Per Pull/Return 4 $982.08 $1,080.29
40 cubic yard
roll off Per Pull/Return 5 $1,129.39 $1,227.59
Customer Owned
Compactors Per Yard/Pull/Return
0.20 per
yard $44.62 $47.05
NVF:RBT:JMD
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EXHIBIT A
T-23823.003/2017912_2 A-6
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Landscape Greenwaste (no glass)
Receptacle Rate Information Tonnage
Limit
Maximum Rate,
North District
Maximum Rate,
South District
20 cubic yard
roll off Per Pull/Return 3 $658.03 $756.21
30 cubic yard
roll off Per Pull/Return 4 $746.38 $844.59
40 cubic yard
roll off Per Pull/Return 5 $834.78 $932.98
2. On-Call Roll-Off Collection Service (Per Pull/Return, not including initial delivery rate, which is charged separately. Excludes compactors.)
Dry and Recyclable Materials
Receptacle Rate Information Tonnage
Limit
Maximum Rate,
North District
Maximum Rate,
South District
10 cubic yard
roll off Per Pull/Return 2 $687.45 $795.48
20 cubic yard
roll off Per Pull/Return 3 $815.12 $923.14
30 cubic yard
roll off Per Pull/Return 4 $942.80 $1,050.84
40 cubic yard
roll off Per Pull/Return 5 $1,070.46 $1,178.49
Customer Owned
Compactors Per Yard/Pull/Return 0.20 per
yard $40.61 $42.80
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EXHIBIT A
T-23823.003/2017912_2 A-7
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Wet Material
Receptacle Rate Information Tonnage
Limit
Maximum Rate,
North District
Maximum Rate,
South District
10 cubic yard
roll off Per Pull/Return 2 $726.74 $834.78
20 cubic yard
roll off Per Pull/Return 3 $874.04 $982.08
30 cubic yard
roll off Per Pull/Return 4 $1,021.36 $1,129.39
40 cubic yard
roll off Per Pull/Return 5 $1,168.67 $1,276.69
Customer Owned
Compactors Per Yard/Pull/Return 0.20 per
yard $46.85 $49.40
Landscape Greenwaste (no glass)
Receptacle Rate Information Tonnage
Limit
Maximum Rate,
North District
Maximum Rate,
South District
20 cubic yard
roll off Per Pull/Return 3 $697.28 $805.30
30 cubic yard
roll off Per Pull/Return 4 $785.65 $893.70
40 cubic yard
roll off Per Pull/Return 5 $874.04 $982.08
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EXHIBIT A
T-23823.003/2017912_2 A-8
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
3. Other Miscellaneous Roll-Off Services
Type of Service Receptacle Rate Information Maximum Rate Demurrage Charge
(e.g., rental charge) All roll-off sizes Per week * $324.09 Delivery Service All roll-off sizes Per Occurrence for delivery to collection site $127.68
Overage Charge—Dry
and Recyclable
Materials
All roll-off &
compactor
sizes
Per Ton for Each Ton in Excess
of Limit $127.68
Overage Charge—Wet
Material
All roll-off &
compactor
sizes
Per Ton for Each Ton in Excess
of Limit $147.32
Overage Charge—
Landscape Greenwaste
(no glass)
All roll-off &
compactor
sizes
Per Ton for Each Ton in Excess
of Limit $88.40
Hasp & Lock for Roll
Off, one time charge Not Applicable Per Occurrence $29.47 Return Rate Not Applicable
Extra rate if customer container
is blocked or unserviceable &
franchisee has to return to
provide service $98.19
Relocation Charge All roll-off box
sizes Per Relocation $147.32
Steam Cleaning or
Compactor Repairs
All roll-off box
sizes Per Hour (parts billed separately) $294.62
Service Interrupt Fee Not Applicable Per Occurrence $58.91 Late Fee Not Applicable After 60 days past due 1.50%
Insufficient Funds Fee Not Applicable Per Occurrence $58.91 *Extra charge if a customer subscribing to temporary service keeps the box longer than seven (7) days without pickup or return.
NVF:RBT:JMD
5/3/2023
EXHIBIT B
T-23823.003/2017912_2 B-1
Council Agenda: 5/16/2023
Item No.: 6.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
TOTAL ORGANICS PROCESSING FEE 2023-2024
$18,513,582