HomeMy WebLinkAboutItem 3B - Presentation
Franchise Agreement:
Solid Waste Collection
Agenda Item #3B
June 16, 2022
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Franchise Agreement
Modifications necessitated by passage of SB1383 and additional services required for organic waste collection
May 26, 2022 – Initial review and discussion
June 16, 2022 – Finalize discussion on rates, address questions on modifications to agreement
June 30, 2022 – Finalize agreement
Fall 2022 – public hearing, implementation
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Term of Agreement
PSDS had proposed three rate options, two of which extended the term of the existing agreement
Council direction was to maintain current term of agreement (through March 2029)
Updated rate proposal is based on existing term of agreement
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Base Residential Rate
Council direction was to look at reducing residential rate, based on analysis from City’s consultant (Sloan Vazquez McAfee)
PSDS has reevaluated their rates and proposes to reduce residential service rate from $26.61 to $25.93
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Vacation Rental Rate
Rate increase for vacation rental properties is based on:
Increased # of carts/waste generation
Increased occupancy
Additional services
Home share properties will be charged standard residential rate
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Rate Comparison with Other Cities
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Note – rate comparisons are challenging due to:
Differences in franchise fees
Residential vs. commercial mix
Differing city services provided at no additional charge
Differences in market share between haulers
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Service Commencement
Delays in obtaining new trucks has pushed start date for new organic waste collection routes
Current delivery date for new trucks: January 2023
PSDS will lease trucks temporarily and will begin service on October 31, 2022
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Franchise Agreement Modifications
General changes made to add best practices, eliminate ambiguity of existing agreement, address statutory and regulatory updates; other changes include:
Scope of Agreement (Section 4.2) – Modified to address community composting
Scope of Collection Services (Article 5) – Modified to include additional services required by SB1383
Franchise Fee Calculation (Section 9.1) – simplified calculation of fee (from 10.6% to 11%)
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Franchise Agreement Modifications
Extraordinary Rate Adjustment (Section 10.5) – Limits conditions for adjustment requests
Insurance Requirements (Section 11.11) – Increased insurance coverage required by City
Performance Review (Section 12.6) – Section updated to require review in 3 years, additional review permissible
Liquidated Damages (Section 12.7) – Added new liquidated damages section relative to SB 1383 implementation
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Questions?
Chris Cunningham, Robert Kuznik – PSDS
Rate Proposal, Implementation Date
Joanna Gin – Best Best & Krieger
Franchise Agreement
Enrique Vazquez – Sloan Vazquez McAfee
Analysis of Rates
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