CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

June 5, 2018
CONSENT AGENDA

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Agnes Topp, Environmental Compliance Manager

APPROVED BY: Chip Rerig, City Administrator

Resolution 2018 - 051, Approving the Rates Charged by GreenWaste Recovery for the
SUBJECT: Collection of Solid Waste, Recycling and Organics.

RECOMMENDATION:

Adopt Resolution 2018-051, approving the rates charged by the City’s franchised hauler, GreenWaste
Recovery, effective July 1, 2018, for the collection of solid waste, recycling and organics.

BACKGROUND/SUMMARY:

On June 17, 2014, Council approved a Franchise Agreement (Agreement) with GreenWaste Recovery (GWR)
for the collection of solid waste, recycling and organics, subsequent to a competitive Request for Proposals
selection process. The Agreement became effective on July 1, 2015 and includes a prescribed formula to
determine annual rate adjustments by GWR. This formula includes the cost of disposal (“tipping fee”) at the
Monterey Regional Waste Management District (MRWMD) facility in Marina as well as cost adjustments for
GWR for labor and other operating costs. Based on this formula, the rates will increase by 2.1% for residential
customers, 1.6% for commercial customers and 1.6% per roll-off container pull for Construction and Demolition
(C&D) in fiscal year 2018-2019.

A significant portion of the rate increase this year is attributed to increased MRWMD disposal fees. The
MRWMD, of which the City is a member, operates the landfill, materials recovery facility (MRF), and an
anaerobic food digester to help the City, and region, meet State landfill diversion requirements. The new
disposal fees are required to fund operating expenses, capital projects, and other expenses. The cost of
disposal is an allowable pass through cost that is factored into the rate adjustment. MRWMD's operating
expenses have increased due to the operation of the new MRF to meet State regulatory requirements to divert
65% of C&D materials from the landfill as well as the long-term State objective to divert 75% of all materials,
including organics, from the landfill by 2020. Capital costs are driven by the need for a new landfill cell to handle
increased volumes, and to meet state storm water regulations. Disposal rate adjustments include a solid waste
tipping fee of $62.00 (11% increase), yard waste tipping fee of $40.00 (23% increase), food scraps tipping fee
of $54.00 (19% increase), and a recyclables credit of $40.00. MRWMD’s solid waste tipping fee is the
lowest in the region and remains so even with the increase.

GWR operational costs are based on inflation for fuel, labor and other operating costs, as well as the change in
tonnage over the prior fiscal year. Compared to last fiscal year, solid waste tonnage is down 17.2%, yard
trimming and recycling are up modestly by 2% and 1.4% respectively, food waste tonnage rose 112.1%, and
C&D waste is down 85.7%. The reduction in solid waste disposal and increase in recycling is beneficial for
customers because tipping fees are higher for solid waste; thus, a reduction in solid waste tonnage helps keep
collection rates low. MRWMD’s C&D processing line was not in operation during the upgrade of the MRF, which
resulted in a significant decrease in C&D waste recycling. Not including the tipping fee increase for MRWMD,
the rate adjustment for GWR operations alone would be -0.1% for residential customers, 0.6% for commercial
customers, and 1.6% for C&Ds.

While the Agreement requires the City Council to approve annual rate adjustments, the rate adjustment is based
upon inflationary indexes, disposal fees and actual tonnage. Council has the option to approve or disagree with
the rate calculations. City staff, in tandem with MRWMD staff and its consultant, finds the rate calculation
methodology to be consistent with the Agreement. Therefore, staff recommends Council approve the rate
adjustment, which becomes effective on July 1, 2018, in accordance with the Agreement.
FISCAL IMPACT:

For context, a residential customer with a 32-gallon trash cart will now pay $32.58 a month for solid waste,
recycle and yard trimming service, as compared to the current rate of $31.90 a month, an increase of roughly $8
per year. Commercial rates vary based upon size of the cart, frequency of service collection, and type of
service provided.
PRIOR CITY COUNCIL ACTION:

On June 17, 2014, Council approved an Agreement with GWR for collection of solid waste, recycling and
organics. Most recently, on June 6, 2017, Council approved a formula-based rate adjustment for collection of
solid waste, recycling and organics.
ATTACHMENTS:

Resolution 2018-051, Approving the Rates Charged by Greenwaste Recovery for the Collection of Solid
Waste, Recycling and Organics
 Attachment 1
Attachment #1

RESOLUTION 2018-051

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-

SEA APPROVING RATES TO BE CHARGED BY GREENWASTE RECOVERY,
EFFECTIVE JULY 1, 2018, FOR COLLECTION OF SOLID WASTE, RECYCLING
AND ORGANICS
WHEREAS, the City of Carmel-by-the-Sea (City) entered into a Franchise Agreement
with GreenWaste Recovery, Inc. (GWR) on June 17, 2014 for solid waste, recycling, and
organics collection services for the period of July 1, 2015 through June 30, 2030; and,
WHEREAS, Section 8.2 of the Franchise Agreement requires, and Exhibit E1 to the
Agreement describes the process for, annual inflationary adjustments to customer rates on July
1 of each year, based on agreed-upon cost indices, changes in tipping fees at the Monterey
Regional Waste Management District landfill, and actual tonnage of materials collected by
GWR; and,
WHEREAS, the application of the formulas required by the Franchise Agreement result
in different rate increases for each and every service level; and,
WHEREAS, GWR’s calculation of the rate adjustments have been reviewed by City staff,
and staff finds the calculations to be accurate and consistent with the methodology and
requirements of the Franchise Agreement.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA:

Approve an adjustment to rates to be charged by GreenWaste Recovery, Inc. under the

Franchise Agreement, as shown in the attached Exhibit A, effective on July 1, 2018.

PASSED AND ADOPTED BY THE CITY OF COUNCIL OF THE CITY OF CARMEL-BY-THE

SEA this 5th of June 2018, by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:

SIGNED: ATTEST:

_______________________
Steve G. Dallas, Mayor Thomas A. Graves, MMC, City Clerk
 Attachment 1

Resolution Exhibit A

Franchise Agreement Exhibit G-3

Rates Effective July 1, 2018
(All rates are monthly unless stated otherwise)
 Carmel‐July 2018
Attachment 1

Residential Solid Waste Collection Rates
Service Level Solid Waste Recycling Organics
20 Gal Back/Side $29.32 Included Included
32 Gal Back/Side $32.58 Included Included
64 Gal Back/Side $51.50 Included Included
96 Gal Back/Side $65.29 Included Included
Notes:
See Exhibit B1 for specific service availability

Commercial/Multi‐Family Solid Waste Collection Rates
Frequency
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week
32‐Gallon Cart $32.81 $65.65 $83.24 $101.20 $119.04 $160.61
64‐Gallon Cart $63.20 $102.86 $142.69 $182.53 $269.11 $341.71
96‐Gallon Cart $77.96 $146.60 $217.61 $274.38 $352.33 $447.16
1‐Cubic Yard Bin $180.00 $338.54 $463.28 $582.34 $701.42 $891.68
2‐Cubic Yard Bin $264.50 $528.61 $793.13 $1,058.72 $1,247.12 $1,327.61
3‐Cubic Yard Bin $374.50 $660.76 $925.10 $1,144.98 $1,321.84 $1,585.96
4‐Cubic Yard Bin $498.26 $819.99 $1,321.73 $1,646.91 $1,792.90 $1,938.89
6‐Cubic Yard Bin n/a n/a n/a n/a n/a n/a
8‐Cubic Yard Bin n/a n/a n/a n/a n/a n/a
2‐Cubic Yard Compactor $289.34 $578.29 $867.63 n/a n/a n/a
3‐Cubic Yard Compactor $411.74 $735.28 $1,036.87 n/a n/a n/a
4‐Cubic Yard Compactor $547.92 $919.33 $1,470.75 n/a n/a n/a

Commercial/Multi‐Family Recycling Collection Rates
Frequency
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week
64‐Gallon Cart $9.48 $15.43 $21.40 $27.38 $40.37 $51.26
96‐Gallon Cart $11.70 $21.99 $32.64 $41.16 $52.86 $67.07
1‐Cubic Yard Bin $27.00 $50.78 $69.49 $87.35 $105.21 $133.75
2‐Cubic Yard Bin $39.67 $79.29 $118.97 $158.81 $187.07 $199.14
3‐Cubic Yard Bin $56.18 $99.11 $138.77 $171.75 $198.28 $237.89
4‐Cubic Yard Bin n/a n/a n/a n/a n/a n/a
6‐Cubic Yard Bin n/a n/a n/a n/a n/a n/a
8‐Cubic Yard Bin n/a n/a n/a n/a n/a n/a
2‐Cubic Yard Compactor $10.72 $21.38 $32.11 n/a n/a n/a
3‐Cubic Yard Compactor $12.74 $12.26 $8.48 n/a n/a n/a
4‐Cubic Yard Compactor n/a n/a n/a n/a n/a n/a

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 Carmel‐July 2018
Attachment 1

Commercial/Multi‐Family Food Waste Collection Rates
Frequency
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week
64‐Gallon Cart $47.40 $77.14 $107.02 $136.90 $201.84 $256.29
96‐Gallon Cart $58.46 $109.95 $163.21 $205.79 $264.26 $335.37
1‐Cubic Yard Bin $135.00 $253.91 $347.46 $436.75 $526.07 $668.76
2‐Cubic Yard Bin $198.37 $396.46 $594.85 $794.04 $935.34 $995.70

Commercial/Multi‐Family Yard Trimmings Collection Rates
Frequency
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week
64‐Gallon Cart $47.40 $77.14 $107.02 $136.90 $201.84 $256.29
96‐Gallon Cart $58.46 $109.95 $163.21 $205.79 $264.26 $335.37
1‐Cubic Yard Bin $135.00 $253.91 $347.46 $436.75 $526.07 $668.76
2‐Cubic Yard Bin $198.37 $396.46 $594.85 $794.04 $935.34 $995.70
3‐Cubic Yard Bin $280.87 $495.57 $693.82 $858.73 $991.38 $1,189.47

Roll‐Off Collection Rates (Per Pull)
Material
Service Level MSW REC YT C&D
10 YD $461.28 $461.28 $461.28 $461.28
20 YD $507.11 $507.11 $507.11 $507.11
30 YD $630.13 $630.13 $630.13 $630.13
40 YD $753.14 $753.14 $753.14 $753.14
Per Ton $71.26 ‐$45.98 $45.98 $71.26

Additional Service Rates
Service Sector Charge Per Event
Cart Rental ‐ All Sizes RES $3.12
Cart Replacement RES $62.39
Re‐Delivery or Re‐Start RES $26.00
Cart Cleaning RES $26.00
Non‐Scheduled Collection RES $19.76
Cardboard Sticker COM $9.66
Difficult to Service Cart COM $1.04
Difficult to Service Bin COM $3.12
Locking Bin COM $51.99
Cart Replacement COM $62.39
Cart Cleaning COM $26.00
Bin Swap‐ Cleaning or Repainting COM $77.98
Bulky ‐ Recyclable RES/COM $20.79
Bulky ‐ Non Recyclable RES/COM $26.00
Bulky ‐ Event RES/MFD $31.19
Covered Box RO $77.98
Driver Time per Hour RO $114.37
Dry Run or Relocation RO $77.98
Extra Days RO $26.00
*Note: All Rates are monthly unless stated otherwise.

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