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CC Resolution No. 23-131 Adopt a maximum rate schedule for Rate Period Four for RecologyRESOLUTION NO. 23-131 A RESOLUTION OF THE CUPERTINO CITY COUNCIL ADOPTING A MAXIMUM RATE SCHEDULE FOR RATE PERIOD FOUR PER THE FRANCHISE AGREEMENT WITH RECOLOGY CUPERTINO RELATED TO RECYCLING, ORGANICS, AND SOLID WASTE COLLECTION, PROCESSING, AND DISPOSAL; AND AUTHORIZING THE USE OF $547,800 OF RESTRICTED-USE ENTERPRISE FUNDS TO SMOOTH AND MITIGATE THE RATE PERIOD FOUR ADJUSMENT. WHEREAS, pursuant to state constitutional and statutory authority, the City of Cupertino has the authority to regulate the handling of solid waste within its jurisdiction; and WHEREAS, the City enacted and maintains Municipal Code Chapters 6.24 and 9.16, in part, to satisfy solid waste collection and diversion obligations, and other requirements of the California Integrated Waste Management Act AB 939, Assembly Bill 1826, the Short-Lived Climate Pollutants Bill of 2016 SB 1383, and related laws and regulations; and WHEREAS, pursuant to Municipal Code Section 6.24.120 and applicable statutory authority, where the public health, safety, and well-being require it, the City may award an exclusive franchise to any person or entity the City Council believes is qualified to perform solid waste collection service; and WHEREAS, the City has determined that collection of solid waste, which includes garbage, recyclables, and organic waste, is 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, and the City and its residents benefit from granting an exclusive franchise for same; and WHEREAS, in 2020 the City entered an exclusive franchise agreement with Recology South Bay d/b/a Recology Cupertino (“Recology”) for collection and processing or recyclable and compostable materials, and the collection of disposal of garbage (the “Existing Franchise Agreement”), the base term of which is scheduled to expire on January 31, 2031; 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 reserves the right to establish a maximum schedule of rates and charges for all levels 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 Resolution No. 23-131 Page 2 WHEREAS, the Existing Franchise Agreement with Recology includes a methodology set forth in Exhibit E.2 to the agreement for determining the maximum schedule of rates and charges for all levels of solid waste collection services for Rate Period Four; and WHEREAS, the City reviewed all aspects of the rate request from Recology using the approved methodology; and WHEREAS, the solid waste collector is solely responsible for setting and collecting such rates and charges at a level at or below the established maximum schedule; and WHEREAS, the Resource Recovery Enterprise Fund 520-330 (“Resource Recovery Fund”) is an enterprise fund held by the City whose purpose is to pay for operating costs related to the collection, disposal, and recycling of solid waste performed under franchise; and WHEREAS, the City Council approved on December 16, 2020 that it would be prudent to establish a target reserve for the Resource Recovery Fund of Five Hundred Thousand Dollars ($500,000), which is approximately two percent of the City’s current annual solid waste program operating costs, and that such reserve may be drawn below the targeted reserve amount based on the reasonable discretion of the Director of Public Works consistent with the City’s budget and other financial policies and procedures; and WHEREAS, the City has determined that it would be appropriate to make strategic use of amounts in the Resource Recovery Fund in excess of the recommended reserve to smooth and mitigate rate adjustments for the benefit of ratepayers; and WHEREAS, such strategic use of the Resource Recovery Fund was anticipated during the development of the Fiscal Year 23-24 Base Budget; and NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby: 1. Acknowledge the foregoing recitals are true and correct and incorporated into this Resolution by this reference. 2. Adopt the maximum rate schedule for Rate Period Four (beginning February 1, 2024) (Exhibit A). 3. Authorize use of $547,800 from the Resource Recovery Fund 520-330 to smooth and mitigate the rate adjustment in Rate Period Four, in the manner as more particularly described in the Franchise Agreement at Section 8.2.C. Resolution No. 23-131 Page 3 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 5th day of December, 2023, by the following vote: Members of the City Council AYES: Wei, Mohan, Chao, Fruen NOES: None ABSENT: None ABSTAIN: Moore SIGNED: _________ Hung Wei, Mayor City of Cupertino ________________________ Date ATTEST: _________________________ Kirsten Squarcia, City Clerk ________________________ Date 12/11/23 12/11/23 Resolution No. 23-131 Page 4 Residential Rate Schedule City of Cupertino February 1, 2024 Single Family Dwelling Curbside 24 gallon $39.67 Curbside 32 gallon $42.19 Curbside 64 gallon $81.20 Curbside 96 gallon $120.20 Curbside Add'l Cart $39.00 Walk-up 24 gallon $60.62 Walk-up 32 gallon $63.15 Walk-up 64 gallon $123.09 Walk-up 96 gallon $183.02 Walk-up Add'l Cart $59.94 Additional Organics/YW Toter: No Charge Low Income Curbside 24 gallon $19.17 Curbside 32 gallon $21.69 Walk-up 24 gallon $31.28 Walk-up 32 gallon $33.80 Late Charge Fee 1.2% Per Month Delinquen (Not compounded) Additional Charges Extra Bag Tag $11.34 10 Bag Tags $107.91 Extra Can (1-Time) $19.54 Dirty Cart Exchange $44.14 Extra Bulky Item Pickup $195.00 Extra Bulky = charge for maximum allowed quantity at one pickup per the Franchise Agreement. Actual charge based on material collected. 24 HR Container Service Bin By The Day 4 Yard $252.24 Bin By The Day 6 Yard $308.92 Bin By The Day 7 Yard $337.26 Exhibit A Resolution No. 23-131 Page 5 Multi-Family Garbage Rate Schedule City of Cupertino February 1, 2024 Front Loader Containers 1.5 CY 1XWK $198.14 1.5 CY 4XWK $792.6 1.5 CY 2XWK $396.32 1.5 CY 5XWK $990.7 1.5 CY 3XWK $594.46 1.5 CY 6XWK $1,188.9 Extra P/U $61.4 2 CY 1XWK $237.84 2 CY 4XWK $951.1 2 CY 2XWK $475.52 2 CY 5XWK $1,188.9 2 CY 3XWK $713.38 2 CY 6XWK $1,426.6 Extra P/U $76.8 3 CY 1XWK $317.04 3 CY 4XWK $1,268.2 3 CY 2XWK $634.07 3 CY 5XWK $1,585.2 3 CY 3XWK $951.10 3 CY 6XWK $1,902.2 Extra P/U $83.9 4 CY 1XWK $396.32 4 CY 4XWK $1,585.2 4 CY 2XWK $792.62 4 CY 5XWK $1,981.5 4 CY 3XWK $1,188.90 4 CY 6XWK $2,377.8 Extra P/U $104.7 6 CY 1XWK $554.82 6 CY 4XWK $2,219.3 6 CY 2XWK $1,109.65 6 CY 5XWK $2,774.1 6 CY 3XWK $1,664.47 6 CY 6XWK $3,328.9 Extra P/U $145.7 8 CY 1XWK $713.40 8 CY 4XWK $2,853.3 8 CY 2XWK $1,426.66 8 CY 5XWK $3,566.7 8CY 3XWK $2,140.07 8CY 6XWK $4,280.0 Extra P/U $188.4 Bin Pushout Service 1XW $69.7 4XW $279.4 2XW $139.9 5XW $348.7 3XW $209.4 6XW $419.5 * Pushout service only applies if containers are moved more than 25ft. Cart Pushout Service per set of 3 carts: Garbage, Recycle, Organic 1XWK $16.50 4XW $65.96 2XWK $32.98 5XW $82.46 3XWK $49.48 6XW $98.94 * Pushout service only applies if containers are moved more than 25ft. Rate includes up to 50ft. More than 50ft add an addition 10% for each addition 10ft. Key Servic $77.6 32 Special Services $129.52 Steam Clean and Re-Delivery of Bin (Shall be provided once per year w/o charge) Furnishing Chains (One Time Only) Extra Bulky Item Pickup Extra Bulky Item Pickup $195.00 Extra Bulky = charge for maximum allowed quantity at one pickup per the Franchise Agreement. Actual charge based on material collected. Multi Family Garbage Cart gallon increments $31.50 Front Load Compactor Per Cubic Yard Per Pull $55.97 Return Trip Fee $17.27 Resolution No. 23-131 Page 6 Commercial Garbage Rate Schedule City of Cupertino February 1, 2024 Front Loader Containers 1.5 CY 1XWK $198.14 1.5 CY 4XWK $792.6 1.5 CY 2XWK $396.32 1.5 CY 5XWK $990.7 1.5 CY 3XWK $594.46 1.5 CY 6XWK $1,188.9 Extra P/U $61.4 2 CY 1XWK $237.84 2 CY 4XWK $951.1 2 CY 2XWK $475.52 2 CY 5XWK $1,188.9 2 CY 3XWK $713.38 2 CY 6XWK $1,426.6 Extra P/U $76.8 3 CY 1XWK $317.04 3 CY 4XWK $1,268.2 3 CY 2XWK $634.07 3 CY 5XWK $1,585.2 3 CY 3XWK $951.10 3 CY 6XWK $1,902.2 Extra P/U $83.9 4 CY 1XWK $396.32 4 CY 4XWK $1,585.2 4 CY 2XWK $792.62 4 CY 5XWK $1,981.5 4 CY 3XWK $1,188.90 4 CY 6XWK $2,377.8 Extra P/U $104.7 6 CY 1XWK $554.82 6 CY 4XWK $2,219.3 6 CY 2XWK $1,109.65 6 CY 5XWK $2,774.1 6 CY 3XWK $1,664.47 6 CY 6XWK $3,328.9 Extra P/U $145.7 8 CY 1XWK $713.40 8 CY 4XWK $2,853.3 8 CY 2XWK $1,426.66 8 CY 5XWK $3,566.7 8CY 3XWK $2,140.07 8CY 6XWK $4,280.0 Extra P/U $188.4 Bin Pushout Service 1XW $69.7 4XW $279.4 2XW $139.9 5XW $348.7 3XW $209.4 6XW $419.5 * Pushout service only applies if containers are moved more than 25ft. Cart Pushout Service per set of 3 carts: Garbage, Recycle, Organic 1XWK $16.50 4XWK $65.96 2XWK $32.98 5XWK $82.46 3XWK $49.48 6XWK $98.94 * Pushout service only applies if containers are moved more than 25ft. Rate includes up to 50ft. More than 50ft add an addition 10% for each addition 10ft. 32 Commercial Garbage Cart gallon increments $31.50 Key Service $77.69 Special Services $129.52 Steam Clean and Re-Delivery of Bin (Shall be provided once per year w/o charge) Furnishing Chains (One Time Only) Front Load Compactor Per Cubic Yard Per Pull $55.97 Return Trip Fee $17.27 Resolution No. 23-131 Page 7 Commercial/Multi Family Recycle Rate Schedule City of Cupertino February 1, 2024 Front Loader Containers 1.5 CY 1XWK $95.12 1.5 CY 4XWK $380.5 1.5 CY 2XWK $190.26 1.5 CY 5XWK $475.6 1.5 CY 3XWK $285.38 1.5 CY 6XWK $570.7 Extra P/U $29.5 2 CY 1XWK $114.17 2 CY 4XWK $456.5 2 CY 2XWK $228.28 2 CY 5XWK $570.7 2 CY 3XWK $342.47 2 CY 6XWK $684.8 Extra P/U $36.8 3 CY 1XWK $152.21 3 CY 4XWK $608.8 3 CY 2XWK $304.40 3 CY 5XWK $761.0 3 CY 3XWK $456.59 3 CY 6XWK $913.2 Extra P/U $40.3 4 CY 1XWK $190.26 4 CY 4XWK $761.0 4 CY 2XWK $380.51 4 CY 5XWK $951.2 4 CY 3XWK $570.75 4 CY 6XWK $1,141.5 Extra P/U $50.2 6 CY 1XWK $266.35 6 CY 4XWK $1,065.4 6 CY 2XWK $532.70 6 CY 5XWK $1,331.7 6 CY 3XWK $799.04 6 CY 6XWK $1,598.1 Extra P/U $69.9 8 CY 1XWK $342.48 8 CY 4XWK $1,369.7 8 CY 2XWK $684.88 8 CY 5XWK $1,712.2 8CY 3XWK $1,027.36 8CY 6XWK $2,054.7 Extra P/U $90.4 Bin Pushout Service 1XW $69.77 4XW $279.4 2XW $139.90 5XW $348.7 3XW $209.48 6XW $419.5 * Pushout service only applies if containers are moved more than 25ft. Cart Pushout Service per set of 3 carts: Garbage, Recycle, Organic 1XWK $16.50 4XWK $65.96 2XWK $32.98 5XWK $82.46 3XWK $49.48 6XWK $98.94 * Pushout service only applies if containers are moved more than 25ft. Rate includes up to 50ft. More than 50ft add an addition 10% for each addition 10ft. Recycle Cart Key Service 32 gallon increments $15.12 $77.69 Special Services $129.52 Steam Clean and Re-Delivery of Bin (Shall be provided once per year w/o charge) Furnishing Chains (One Time Only) Return Trip Fee $17.27 Resolution No. 23-131 Page 8 Commercial/Multi Family Organic Rate Schedule City of Cupertino February 1, 2024 Front Loader Containers 1.0 CY 1XWK $158.43 1.0 CY 4XWK $633.7 1.0 CY 2XWK $316.88 1.0 CY 5XWK $792.1 1.0 CY 3XWK $475.31 1.0 CY 6XWK $950.6 Extra P/U $51.1 1.5 CY 1XWK $198.14 1.5 CY 4XWK $792.6 1.5 CY 2XWK $396.32 1.5 CY 5XWK $990.7 1.5 CY 3XWK $594.46 1.5 CY 6XWK $1,188.9 Extra P/U $61.4 2 CY 1XWK $237.84 2 CY 4XWK $951.1 2 CY 2XWK $475.52 2 CY 5XWK $1,188.9 2 CY 3XWK $713.38 2 CY 6XWK $1,426.6 Extra P/U $76.8 3 CY 1XWK $317.04 3 CY 4XWK $1,268.2 3 CY 2XWK $634.07 3 CY 5XWK $1,585.2 3 CY 3XWK $951.10 3 CY 6XWK $1,902.2 Extra P/U $83.9 4 CY 1XWK $396.32 4 CY 4XWK $1,585.2 4 CY 2XWK $792.62 4 CY 5XWK $1,981.5 4 CY 3XWK $1,188.90 4 CY 6XWK $2,377.8 Extra P/U $104.7 6 CY 1XWK $554.82 6 CY 4XWK $2,219.3 6 CY 2XWK $1,109.65 6 CY 5XWK $2,774.1 6 CY 3XWK $1,664.47 6 CY 6XWK $3,328.9 Extra P/U $145.7 8 CY 1XWK $713.40 8 CY 4XWK $2,853.3 8 CY 2XWK $1,426.66 8 CY 5XWK $3,566.7 8CY 3XWK $2,140.07 8CY 6XWK $4,280.0 Extra P/U $188.4 Bin Pushout Service 1XW $69.7 4XW $279.4 2XW $139.9 5XW $348.7 3XW $209.4 6XW $419.5 * Pushout service only applies if containers are moved more than 25ft. Cart Pushout Service per set of 3 carts: Garbage, Recycle, Organic 1XWK $16.50 4XWK $65.96 2XWK $32.98 5XWK $82.46 3XWK $49.48 6XWK $98.94 * Pushout service only applies if containers are moved more than 25ft. Rate includes up to 50ft. More than 50ft add an addition 10% for each addition 10ft. 32 gallon Organic Cart increments $31.50 Key Service $77.69 Special Services $129.52 Steam Clean and Re-Delivery of Bin (Shall be provided once per year w/o charge) Furnishing Chains (One Time Only) Organic Compactor Per Cubic Yard Per Pull $55.97 Attachment A Debris Box Service Rate Schedule City of Cupertino February 1, 2024 Description 16DO 20DO 26DO 30DO 40DO Allowed Tons Base Rates $ 667.8 $ 745.63 $ 1,021.98 $ 1,208.3 $ 1,289.0 Add'l Tons $ 124.2 $ 124.23 $ 124.23 $ 124.2 $ 124.2 Processor Newby Newby Newby Newby Newby Source Separated Recycling 08DOR 08DOR 08DO 16DOR-40DO 16DOR-40DOR Clean Dirt Clean Concrete Asphalt Mix rock, dirt & concrete Clean Wood Sheet Rock Allowed Tons 6 Haul Rate $ 598.32 $ 598.32 $ 1,040.47 $ 598.3 $ 598.32 Recycling Process Rate per ton $ 57.97 $ 57.97 $ 57.97 $ 57.9 $ 57.97 Note: Source Separated Recycling Loads will be charged the regular box rate if contaminated or mixed Other Miscellaneous Rates Description Code Amount Daily Rental Rate For Boxes Beyond 7 Days RENT $ 31.76 Weekly Rental Rate For Boxes Beyond 7 Days RENT $ 201.84 Trip Charge For Empty Debris Box/Compactor (No Dump) TRIP $ 119.67 Dry Run, Scheduled Service Bin Empty TRIP $ 239.33 Relocate Container After Initial Delivery RELOC $ 119.67 Same Day Cancelation (No Dump) CANCL $ 79.79 Steam Clean after exchange bring back to yard TRIP $ 239.33 Garbage, Organic, and Recycling Compactor Rates Description Amount Processor Dirty Garbage Compactor Rates Per Yard Per Pull $ 56.30 Newby N/A Organic Compactor Rates Per Yard Per Pull $ 56.30 Recology $ 70.38 Mixed Recycling Compactor Rates Per Pull $ 541.86 GW Recovery $ 680.69 Mixed Recycling Compactor Rates Per Ton $ 83.90 GW Recovery $ 119.81