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Agenda Item - 2022-12-20 - Number 6.10 - Resolution 22-46, Amending Exhibit A Pertaining to Solid Waste Collection Service Rates 6.10 o�c‘�` o COUNCIL REPORT 0 k �� 0 AEG% Subject: Resolution 22-46, Amending Exhibit A of Resolution 22-27, Approving Garbage and Recycling Collection Service Rates Meeting Date: December 20, 2022 Staff Member: Amanda Watson, Sustainability Program Manager Report Date: December 13, 2022 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded O Resolution 0 Not Applicable ❑ Information Only Comments: ❑ Council Direction O Consent Agenda Staff Recommendation: Adopt Resolution 22-46. Recommended Language for Motion: Move to adopt Resolution 22-46. Project/ Issue Relates To: Solid Waste Franchise; Sustainability Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ONot Applicable ISSUE BEFORE COUNCIL Shall Resolution 22-27, Exhibit A be amended to add to the new garbage and recycling collection service rates effective January 1, 2023, an inadvertent omission regarding industrial service drop box rental rates? Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND Garbage and recycling collection services in Lake Oswego are provided by Republic Services, operating under a 10-year exclusive franchise with the City of Lake Oswego (Ordinance No. 2901). As part of the City's regulation of solid waste collection, City Council is responsible for ensuring that rates are just and reasonable and adequate to provide necessary public service. The process by which the City establishes and modifies appropriate service rates to be charged by Republic Services is detailed in Section 8 of the franchise agreement. The services provided by Republic Services for which City Council establishes rates are residential, commercial, and industrial collection of garbage, recycling, and organics (food scraps and yard debris), as well as drop box service and on-call and extra container pick-ups. Rates for each customer type vary based on the level of service—the size of the roll cart or container and the frequency of pickup. Republic Services submitted a rate increase request to City Council on August 5, 2022. The City contracted with Chris Bell of Bell & Associates, Inc., a consulting firm with expertise in solid waste collection operations, to review the submitted request and financial reports and provide recommendations to the City on options for rate adjustment. At the October 18, 2022 Council Meeting, staff presented the findings of Bell & Associates' rate review and options and recommendations for City Council to adjust rates effective January 1, 2023. City Council directed staff to return with a resolution approving the proposed rate adjustment options: • Increase residential rates by 5.27%, maintaining the current rate structure. • Bundle commercial food waste collection into commercial rates, and increase commercial rates by 5.17%. • Set rates for drop box and roll off compactor service at the cost of service. Additionally, the City Council decided to include in the Resolution continuation of the 50% discount on solid waste collection services for Lake Oswego School District facilities that was included in the 2012 franchise agreement (Ordinance 2600) and include extension of the discount to other schools providing education to students in grades 1 - 12. At the November 15, 2022 City Council meeting, Council adopted Resolution 22-27, approving new solid waste collection rates (Exhibit A), effective January 1, 2023. DISCUSSION After the adoption of Resolution 22-27, it was brought to staff's attention that the new rate sheet (Exhibit A) did not include rates for daily and monthly drop box rental services provided by Republic Services. Resolution 22-46 amends Exhibit A of Resolution 22-27 to include those two rates that were inadvertently omitted from the industrial service rates. The increase to Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 those rates follows the same rate increase analysis as the other rates as stated in Resolution 22-27 (a cost of service increase). RECOMMENDATION Staff recommends that the City Council approve Resolution 22-46. ATTACHMENTS 1. Exhibit A (rate sheet) showing redlined amendments. 2. Resolution 22-46. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 REGa2 City of Lake Oswego Republic Services Rate Schedule for Garbage, Recycling, Yard Debris, and Organics Collection Effective January 1, 2023 RESIDENTIAL SERVICE RATES Residential Roll Cart Rate 20 gallon $26.84 35 gallon $36.17 60 gallon $53.76 90 gallon $56.33 Up the Drive Rate-20 gallon &35 gallon cart add'I $1.14 for every 50 feet $4.56 Up the Drive Rate-60 gallon &90 gallon carts add'I $1.14 for every 50 feet $6.10 Mountain Park Roll Cart—Trash and Recycling Only, Home Owners Association (HOA) manages Yard Debris in the area. 20 gallon $23.95 35 gallon $33.28 60 gallon $50.88 90 gallon $53.44 Misc. Charges and Limited Services 35 gallon cart—monthly service $21.45 Recycling only (weekly with 60 gal. cart and bin) $5.79 On Call (trash only) *Must service at least once every 2 months $13.71 Extra Can/Bag/Box (CBB) $7.97 Yard Debris Only Service (96 gallon roll cart) $16.18 Yard Debris Extra Can/Bag/Box (CBB YD) $5.90 Contaminated Cart (Recycling) $14.95 Return Trip Fee (RTN) same day $20.07 Return Trip Fee (CAL) off service day $31.89 Gate Opening/Roll Out Container(monthly), per enclosure $18.09 Lost or Damaged Cart (Garbage, Yard Debris, Recycling) $73.49 Lost or Damaged Recycling Bin $12.43 Cart Redelivery Fee $33.68 C..' E°s,. •City of Lake Oswego c) , Republic Services Rate Schedule u v °ReG°� Switch/Wash Out Cart (second) *1 free per year $33.91 Reinstatement Fee $33.68 Bulky Waste Pick Up (Furniture, Appliances, Tires, Mattresses, etc.) Fee based on yardage and special handling needs. Minimum Fee: $31.48 + per yard rate Additional charge for appliances with freon (applies to refrigerators, freezers, air conditioners): $39.71 COMMERCIAL SERVICE RATES Commercial Roll Cart Rate 35 gallon $31.67 60 gallon $45.90 90 gallon $48.65 Commercial Front Load Container' Weekly Collection Frequency(#Collections Per Week) Container Size 1 2 3 4 5 6 1 yard2 $157.30 $277.08 $409.12 $541.28 $673.42 $805.58 multiple $125.84 $221.66 $327.30 $433.02 $538.74 1 $644.46 _ 1.33 yard2 $175.45 $336.34 $494.48 $661.15 $797.64 $934.92 multiple $140.36 $269.071 $395.59 $528.92 $638.11 $747.94I 1.5 yard $197.05 $380.74 $564.41 $748.12 $931.82 $1,115.57 multiple $157.64 $304.59 $451.53 $598.50 $745.46 $892.45 2 yard $247.83 $482.27 $716.71 $951.18 $1,185.65 $1,420.09 multiple $198.26 $385.81 $573.37 $760.94 $948.52 $1,136.07 3 yard $331.94 $642.40 $952.86 $1,263.32 $1,573.80 $1,884.25 multiple $282.15 $546.04 $809.93 $1,073.82 $1,337.73 $1,601.61 4 yard $419.84 $818.19 $1,216.53 $1,614.19 $2,013.26 $2,411.60 multiple $356.86 $695.46 $1,034.05 $1,372.06 $1,711.27 $2,049.86 6 yard $575.32 $1,055.77 $1,678.68 $2,089.69 $2,781.66 $3,123.66 multiple $517.78 $950.19 I $1,510.82 I $1,880.72 $2,503.50 I $2,811.29 8 yard $698.24 $1,372.91 $2,047.62 $2,722.32 $3,397.04 $4,071.74 multiple $628.42 $1,235.621 $1,842.861 $2,450.09 $3,057.331 $3,664.57I 1 Compacted containers charged at 2.2x the loose rate. 2 As of September 1, 2015, 1-yard and 1.33-yard front load containers have not been available to new customers. Current customers with these containers will be allowed to continue service with them at the approved rates. 2 City of Lake Oswego Republic Services Rate Schedule \ REGa� Misc. Charges and Limited Services Rate Return Trip Fee same day/cart only (RTN) 33%of monthly rate Return Trip Fee off service day/cart only(CAL) $31.83 Extra Yardage (EXY) per yard $33.11 Lock $28.23 INDUSTRIAL SERVICE RATES Drop Box/ Roll Off Compactor Rate 10 yard drop box $174.00 20 yard drop box $174.00 30 yard drop box $174.00 40 yard drop box $174.00 Drop Box Delivery $72.00 Relocate Drop Box _ $96.00 Dry Run _ $115.00 Compactor Rate $239.00 Misc. Charges and Limited Services Fee for less than 4 hauls per month $25.00 Round tripped custom/lidded box (per haul) $35.00 Drop box rental Per day, after 48 hours $9.61 Per month $95.20 Custom/lidded box rental (per month) $12.00 Multifamily Recycling Services for Drop Box or Compactor Customers Number of Units Rate per Unit 5-199 $3.02 200-299 $2.55 300-299 $2.31 399+ $2.23 3 ATTACHMENT 2 RESOLUTION 22-46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AMENDING EXHIBIT A OF RESOLUTION 22-27, CORRECTING AN INADVERTENT OMISSION, PERTAINING TO SOLID WASTE COLLECTION SERVICE RATES. WHEREAS, Ordinance 2901 grants Rossman Sanitary Services Inc.,doing business as Allied Waste of Lake Oswego("Franchisee"),an exclusive franchise for solid waste collection services within the City limits, and reserves to City Council the right to establish and modify service rates charged by the Franchisee; and WHEREAS,the Franchisee submitted a rate increase request to City Council on August 5, 2022; and WHEREAS, upon reviewing the report of the City's contracted rate consultant and careful consideration of the interests of the public and the Franchisee, the City Council directed staff to return with a resolution to authorize a rate adjustment for the Franchisee making the following rate adjustments: 1. Increase residential collection rates by 5.27%; 2. Bundle commercial food waste collection into commercial rates, and increase commercial collection rates by 5.17%; 3. Set rates for drop box and roll off compactor service at the cost of service; 4. Continue the 50% discount on collection service rates for Lake Oswego School District facilities, and extend the discount to other schools in Lake Oswego. WHEREAS, on November 15, 2022 the City Council approved Resolution 22-27 approving new solid waste collection service rates effective January 1, 2023; and WHEREAS, rates for industrial service daily and monthly drop box rental services provided by the Franchisee were inadvertently omitted from the final version of Exhibit A of Resolution 22-27, and an amendment to Exhibit A is needed to add those rates, adjusted per the same rate increase analysis as other drop box services per Resolution 22-27. NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The rate schedule attached as Exhibit A to Resolution 22-27 is amended to include the Industrial Service Drop Box Rental Fees as shown on the attached Exhibit A to this Resolution,which shall be effective January 1, 2023 . Section 2. December 20, 2022. This Resolution shall take effect upon passage. // Resolution 22-46 Page 1 of 2 Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 20th day of December, 2022. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Evan Boone, City Attorney Pro Tern Resolution 22-46 Page 2 of 2 EXHIBIT A TO ATTACHMENT 2 REGa2 City of Lake Oswego Republic Services Rate Schedule for Garbage, Recycling, Yard Debris, and Organics Collection Effective January 1, 2023 RESIDENTIAL SERVICE RATES Residential Roll Cart Rate 20 gallon $26.84 35 gallon $36.17 60 gallon $53.76 90 gallon $56.33 Up the Drive Rate-20 gallon &35 gallon cart add'I $1.14 for every 50 feet $4.56 Up the Drive Rate-60 gallon &90 gallon carts add'I $1.14 for every 50 feet $6.10 Mountain Park Roll Cart—Trash and Recycling Only, Home Owners Association (HOA) manages Yard Debris in the area. 20 gallon $23.95 35 gallon $33.28 60 gallon $50.88 90 gallon $53.44 Misc. Charges and Limited Services 35 gallon cart—monthly service $21.45 Recycling only (weekly with 60 gal. cart and bin) $5.79 On Call (trash only) *Must service at least once every 2 months $13.71 Extra Can/Bag/Box (CBB) $7.97 Yard Debris Only Service (96 gallon roll cart) $16.18 Yard Debris Extra Can/Bag/Box (CBB YD) $5.90 Contaminated Cart (Recycling) $14.95 Return Trip Fee (RTN) same day $20.07 Return Trip Fee (CAL) off service day $31.89 Gate Opening/Roll Out Container(monthly), per enclosure $18.09 Lost or Damaged Cart (Garbage, Yard Debris, Recycling) $73.49 Lost or Damaged Recycling Bin $12.43 Cart Redelivery Fee $33.68 C..' E°s,. •City of Lake Oswego c) , Republic Services Rate Schedule u v °ReG°� Switch/Wash Out Cart (second) *1 free per year $33.91 Reinstatement Fee $33.68 Bulky Waste Pick Up (Furniture, Appliances, Tires, Mattresses, etc.) Fee based on yardage and special handling needs. Minimum Fee: $31.48 + per yard rate Additional charge for appliances with freon (applies to refrigerators, freezers, air conditioners): $39.71 COMMERCIAL SERVICE RATES Commercial Roll Cart Rate 35 gallon $31.67 60 gallon $45.90 90 gallon $48.65 Commercial Front Load Container' Weekly Collection Frequency(#Collections Per Week) Container Size 1 2 3 4 5 6 1 yard2 $157.30 $277.08 $409.12 $541.28 $673.42 $805.58 multiple $125.84 $221.66 $327.30 $433.02 $538.74 1 $644.46 _ 1.33 yard2 $175.45 $336.34 $494.48 $661.15 $797.64 $934.92 multiple $140.36 $269.071 $395.59 $528.92 $638.11 $747.94I 1.5 yard $197.05 $380.74 $564.41 $748.12 $931.82 $1,115.57 multiple $157.64 $304.59 $451.53 $598.50 $745.46 $892.45 2 yard $247.83 $482.27 $716.71 $951.18 $1,185.65 $1,420.09 multiple $198.26 $385.81 $573.37 $760.94 $948.52 $1,136.07 3 yard $331.94 $642.40 $952.86 $1,263.32 $1,573.80 $1,884.25 multiple $282.15 $546.04 $809.93 $1,073.82 $1,337.73 $1,601.61 4 yard $419.84 $818.19 $1,216.53 $1,614.19 $2,013.26 $2,411.60 multiple $356.86 $695.46 $1,034.05 $1,372.06 $1,711.27 $2,049.86 6 yard $575.32 $1,055.77 $1,678.68 $2,089.69 $2,781.66 $3,123.66 multiple $517.78 $950.19 I $1,510.82 I $1,880.72 $2,503.50 I $2,811.29 8 yard $698.24 $1,372.91 $2,047.62 $2,722.32 $3,397.04 $4,071.74 multiple $628.42 $1,235.621 $1,842.861 $2,450.09 $3,057.331 $3,664.57I 1 Compacted containers charged at 2.2x the loose rate. 2 As of September 1, 2015, 1-yard and 1.33-yard front load containers have not been available to new customers. Current customers with these containers will be allowed to continue service with them at the approved rates. 2 City of Lake Oswego Republic Services Rate Schedule \ REGa� Misc. Charges and Limited Services Rate Return Trip Fee same day/cart only (RTN) 33%of monthly rate Return Trip Fee off service day/cart only(CAL) $31.83 Extra Yardage (EXY) per yard $33.11 Lock $28.23 INDUSTRIAL SERVICE RATES Drop Box/ Roll Off Compactor Rate 10 yard drop box $174.00 20 yard drop box $174.00 30 yard drop box $174.00 40 yard drop box _ $174.00 Drop Box Delivery _ $72.00 Relocate Drop Box _ _ $96.00 Dry Run _ _ $115.00 Compactor Rate $239.00 Misc. Charges and Limited Services Fee for less than 4 hauls per month $25.00 Round tripped custom/lidded box (per haul) $35.00 Drop box rental Per day, after 48 hours $9.61 Per month $95.20 Custom/lidded box rental (per month) $12.00 Multifamily Recycling Services for Drop Box or Compactor Customers Number of Units Rate per Unit 5-199 $3.02 200-299 $2.55 300-299 $2.31 399+ $2.23 3