Descriptive Information by Jurisdiction of Survey Results
Contra Costa County Waste Management Authority: The Contra Costa Waste Management Authority (Waste Management Authority) consists of the unincorporated areas of Contra Costa County and the following five cities: Danville, Lafayette, Moraga, Orinda and Walnut Creek. The Management Authority combines its regulation of both residential and commercial garbage rates. The Management Authority has an eight-year contract with a two-year extension option with Pleasant Hill Bayshore Disposal (Allied Waste Industries) to collect both residential and commercial garbage. Pleasant Hill Bayshore Disposal was selected through a request for proposals (RFP) process. The operating ratio for each of the cities is 0.85. The franchise fees are as follows: (a) Danville, five percent; (b) Lafayette, five percent; (c) Moraga, five percent; (d) Orinda, eight percent; (e) Walnut Creek, nine percent; and (f) unincorporated areas of Contra Costa County, five percent. Garbage rates are adjusted using a combination of in-depth garbage rate reviews and the Consumer Price Index (CPI). The current monthly residential and commercial garbage rates are shown in the table below.
City of Cupertino: Cupertino combines its regulation of both residential and commercial garbage rates under one franchise agreement. Cupertino has a longstanding exclusive franchise agreement with Los Altos Garbage Company, a subsidiary of Norcal, to collect both residential and commercial garbage in Cupertino. The existing agreement with Los Altos Garbage Company will expire in 2010, unless an extension is granted by the City Council. Cupertino does not use operating ratios. Los Altos Garbage Company collects the garbage fees from the customers and remits an annual franchise fee of 12 percent of gross revenues plus other City fees to Cupertino. The garbage rates are increased annually based on a formula that includes the CPI, the Employment Index and the Los Altos Garbage Company"s revenues. Currently, the residential monthly garbage rates are $16.44 for 32 gallons, $32.88 for 64 gallons and $49.32 for 96 gallons. Currently, the standard front-loader, commercial monthly garbage rate is $153.45 for 3 cubic yards of waste with one pick-up a week.
City of Gilroy: Gilroy combines its regulation of both residential and commercial garbage rates. Gilroy has had an exclusive franchise agreement since the 1940s with South Valley Disposal and Recycle, a subsidiary of Norcal, to collect both residential and commercial garbage in Gilroy. The current agreement with South Valley Disposal and Recycle is for 20 years and will expire in 2017, unless an extension is granted by the City Council. If an extension is not granted, then Gilroy will go out to competitive bid for the collection of residential and commercial garbage. Gilroy used an operating ratio of 0.90 to set the garbage rates in 1997, when the current agreement began. The franchise fee is 9.5 percent of South Valley Disposal and Recycle"s gross revenues. Garbage rates were increased in the fourth year of the existing contract, or July 1, 2001, based on 10 percent of the Motor Fuel Index plus 40 percent of the CPI. Beginning on July 1, 2002, garbage rates will increase annually based on 10 percent of the Motor Fuel Index plus 70 percent of the CPI. Currently, the residential monthly garbage rates are $19.37 for 32 gallons, $27.79 for 64 gallons and $36.44 for 96 gallons. Currently, the standard front-loader, commercial monthly garbage rate is $187.07 for 3 cubic yards of waste with one pick-up a week.
City of Livermore: Livermore combines its regulation of both residential and commercial garbage rates. Livermore has had an exclusive franchise agreement with Livermore Dublin Disposal, a subsidiary of Waste Management for over thirty years. The current agreement with Livermore Dublin Disposal will expire in March 31, 2002. The current operating ratio is 0.93 and the hauler pays a franchise fee of 10 percent of gross revenues. The City of Livermore recently conducted a request for proposal process and again selected Livermore Dublin Disposal to collect residential and commercial garbage in Livermore. The new agreement will begin on April 1, 2002 and the operating ratio will be 0.91. Under the new agreement, garbage rates will be adjusted using a combination of in-depth garbage rate reviews and the CPI. Currently, the residential monthly garbage rates are $11.60 for 32 gallons, $21.65 for 64 gallons and $31.70 for 96 gallons. Currently, standard front-loader commercial monthly garbage rates are $51.88 for one cubic yard of waste with one pick-up a week and $155.64 for three cubic yards of waste with one pick-up a week. The residential and commercial garbage rates are expected to remain the same under the new contract.
City of Los Altos: Los Altos combines its regulation of both residential and commercial garbage rates. Los Altos has an exclusive franchise agreement with Los Altos Garbage Company, a subsidiary of Norcal, to collect both residential and commercial garbage in Los Altos. Los Altos is presently undergoing a rate review. The franchise fee is 10 percent of gross garbage collection revenues. Currently, the residential monthly garbage rates are $19.55 for 32 gallons, $39.10 for 64 gallons and $58.65 for 96 gallons. Currently, the standard front-loader, commercial monthly garbage rate is $192.93 for 3 cubic yards of waste with one pick-up a week.
Town of Los Altos Hills: Los Altos Hills sets residential garbage rates in Los Altos Hills and adjusts those rates as needed to cover costs. Los Altos Hills does not use operating ratios nor charge a franchise fee. Los Altos Hills is strictly a residential community and does not have any commercial business zones. Los Altos Hills has an exclusive agreement with Los Altos Garbage Company, a subsidiary of Norcal, to collect residential garbage in Los Altos Hills. The existing franchise agreement with Los Altos Garbage Company expires in 2003 and has an option to extend, which Los Altos Hills anticipates exercising. Currently, the residential monthly garbage rates are $23.75 for 32 gallons, $47.50 for 64 gallons and $71.25 for 96 gallons.
City of Milpitas: Milpitas regulates both residential and commercial garbage rates through biannual contract negotiations with BFI. Milpitas does not use operating ratios. The city of Milpitas directly charges and collects the garbage fees from the Browning-Ferris Industries (BFI) customers and then remits to BFI the garbage fees, less a four percent billing fee and a 12 percent franchise fee. BFI was selected through a RFP process in 1986. The existing contract with BFI will expire in September of 2007 and Milpitas anticipates going out to bid to select a hauler, after the existing contract expires. The current residential monthly garbage rate for an unlimited number of garbage cans is $21.07 (as of January 1, 2002 the monthly rate will increase by $1.35 to $22.42). Currently, the standard front loader commercial garbage rate per month is $132.58 for 3 cubic yards of waste with one pick-up a week.
City of Morgan Hill: Morgan Hill combines its regulation of both residential and commercial garbage rates. Morgan Hill has always had an exclusive franchise agreement with South Valley Disposal and Recycle, a subsidiary of Norcal, to collect both residential and commercial garbage in Morgan Hill. The current contract with South Valley Disposal and Recycle will expire in 2008 unless a contract extension is granted by the City Council. Morgan Hill does not use operating ratios. Garbage rates are adjusted annually based on 80 percent of CPI. The franchise fees are 16 percent of gross revenues. Currently, the residential monthly garbage rate for an unlimited number of garbage cans is $20.00. Currently, the standard front-loader commercial monthly garbage rate is $226.28 for 3 cubic yards of waste with one pick-up a week.
City of Mountain View: Mountain View combines its regulation of both residential and commercial garbage rates. Mountain View has an exclusive franchise agreement with Foothill Disposal, a subsidiary of Norcal, to collect both residential and commercial garbage in Mountain View. The franchise agreement with Foothill Disposal will expire in 2003. Mountain View does not use operating ratios. The City of Mountain View directly charges and collects the garbage collection fees from the customers and then pays Foothill Disposal a set contract amount. Garbage rates are increased as needed to cover contract costs and City administrative and solid waste management program costs. Under the terms of the existing franchise agreement, Foothill Disposal pays the City of Mountain View franchise and administrative fees, which total 20 percent of Foothill Disposal"s gross revenues. The terms of the franchise agreement also limit Foothill Disposal"s profit to a range of six to 12 percent, excluding certain costs such as management expenses. Currently, the residential monthly garbage rates are $13.45 for 32 gallons, $26.90 for 64 gallons and $40.35 for 96 gallons. Currently, standard front-loader commercial monthly garbage rates are $60.85 for 1 cubic yard of waste with one pick-up a week and $182.60 for 3 cubic yards of waste with one pick-up a week.
City of Napa: Napa combines its regulation of both residential and commercial garbage rates. Napa has had an exclusive franchise agreement for 75 years with Napa Garbage Service (Waste Management) to collect both residential and commercial garbage in Napa. The franchise agreement will expire in 2005. Napa will go out to competitive bid in 2003 to select a garbage collector for residential and commercial garbage and the new contract will begin in 2005. The current operating ratio is 0.90. The existing franchise fee is five percent of gross receipts. Garbage rates are currently adjusted through annual garbage rate reviews. Currently, the residential monthly garbage rates are $19.53 for 35 gallons, $23.04 for 64 gallons and $46.08 for 96 gallons. Currently, standard front-loader commercial monthly garbage rate for three cubic yards of waste with one pick-up a week is $496.37, a significantly higher rate than charged in any of the other jurisdictions. Based on discussions with Napa, they have decided to go out to competitive bid in 2003 for garbage collection in Napa city, in part, because of the high commercial garbage collection rates that its hauler charges its customers and because the existing contract has not been re-bid for 75 years.
City of Oakland: Oakland combines its regulation of both residential and commercial garbage rates. Oakland renegotiated its exclusive franchise agreement in 1995 with Waste Management of Alameda County to collect both residential and commercial garbage in Oakland. That franchise agreement will expire in 2010. Oakland does not use operating ratios. Waste Management of Alameda County collects the garbage collection fees from their customers and then pays Oakland a franchise fee, a comprehensive cleanup fee (to cover Oakland"s cost to street sweep, clean up graffiti etc.) and a recycling surcharge. These fees are flat fees, which are adjusted annually by the CPI. Currently, the franchise fee is $4,006,560, the comprehensive cleanup fee is $9,208,536 and the recycling surcharge is $4,334,976, for a total of $17,550,072. The garbage rates are adjusted by CPI annually. Currently, the residential monthly garbage rates are $18.66 for 35 gallons, $40.67 for 64 gallons and $62.66 for 96 gallons. Currently, standard front-loader commercial monthly garbage rates are $98.06 for 1 cubic yard of waste with one pick-up a week and $257.08 for 3 cubic yards of waste with one pick-up a week.
City of Pacifica: Pacifica combines its regulation of both residential and commercial garbage rates. Pacifica has an exclusive franchise agreement with Coastside Scavenger Company. The current agreement with Coastside Scavenger Company is for 15 years and will expire in 2015, unless an extension is granted by the City Council. If an extension is not granted, then Pacifica will go out to competitive bid for the collection of residential and commercial garbage. The current operating ratio is 0.9259. As of the writing of this report, the following information was not available: (a) the actual franchise fee Pacifica charges its hauler, and (b) how Pacifica adjusts its garbage rates. Currently, the residential monthly garbage rates are $22.33 for 32 gallons, $44.66 for 64 gallons and $66.99 for 96 gallons. Currently, standard front-loader commercial monthly garbage rates are $73.19 for one cubic yard of waste with one pick-up a week and $95.46 for two cubic yards of waste with one pick-up a week
City of Palo Alto: Palo Alto combines its regulation of both residential and commercial garbage rates. Palo Alto renegotiated its exclusive agreement with Palo Alto Sanitation to collect both residential and commercial garbage in Palo Alto in September of 1999 after Palo Alto Sanitation was bought by Waste Management. The agreement with Palo Alto Sanitation is for 7 years and 2 months, with an option to extend the contact for an additional two years. The operating ratio for both residential and commercial garbage collection ranges from 0.86 to 0.90 depending on Waste Management"s revenues and expenses, with a mean operating ratio of 0.88. Palo Alto does not charge a franchise fee and adjusts its garbage rates as needed to cover agreement and waste management program costs. Currently, the residential monthly garbage rates are $18.00 for 32 gallons, $37.05 for 64 gallons and $56.15 for 96 gallons. Currently, standard front-loader commercial monthly garbage rates are $73.60 for one cubic yard of waste with one pick-up per week and $220.70 for three cubic yards of waste with one pick-up per week.
City of San Jose: San Jose regulates residential garbage collection rates but does not regulate commercial garbage collection rates. San Jose currently contracts with Waste Management and Green Team to collect residential garbage in San Jose. Beginning on July 1, 2001, San Jose will contract with Green Team and Norcal to collect residential garbage. San Jose does not use operating ratios nor charge franchise fees for residential garbage collection. The City of San Jose directly charges and collects the garbage collection fees from the residents and then pays the garbage collector a set contract amount. The garbage rates are used to offset the costs of the contracts with the garbage haulers and are increased as needed based on the CPI. Currently, the residential monthly garbage rates are $14.95 for 32 gallons, $29.90 for 64 gallons and $44.85 for 96 gallons.
Commercial garbage collection in San Jose is competitive and is subject to City franchise fees of $2.84 per cubic yard of commercial waste plus a recycling fee of $1 per cubic yard of commercial waste. Currently, there are 23 commercial garbage collectors but Waste Management and BFI have approximately 90 percent of the commercial customers. Currently, Waste Management standard front loader commercial monthly garbage rates are $66.66 for 1 cubic yard of waste with one pick-up per week and $132.88 for 3 cubic yards of waste with one pick-up per week. Currently, BFI"s standard front loader commercial monthly garbage rates are $75.11 for one cubic yard of waste with one pick-up per week and $130.99 for three cubic yards of waste with one pick-up per week.
City of San Leandro: Residential and commercial garbage collection in San Leandro is divided into two service areas. Alameda County Industries collects residential and commercial garbage in most of the northern and western areas of San Leandro (Service Area One). San Leandro renegotiated its franchise agreement for garbage collection in Service Area One when Alameda County Industries bought out the previous garbage hauler, San Leandro Disposal. The Oro Loma Sanitary District (Service Area Two) has an exclusive agreement with Waste Management of Alameda County for residential and commercial garbage collection in all other areas of San Leandro. The Oro Loma Sanitary District has had five separate prior agreements with Waste Management of Alameda County, which were renegotiated into one contract and extended until 2007. Both service areas in San Leandro combine regulation of the residential and commercial garbage rates.
The garbage rates in Service Area One are increased annually based on the CPI but cannot exceed five percent. Service Area One does not use operating ratios. Alameda County Industries collects the garbage fees from the customers and then pays the City of San Leandro a franchise fee and a neutrality fee if Alameda County Industries does not use Waste Management"s Davis Street trash transfer station2. The franchise fee for Service Area One is 10 percent of revenue less bad debt and the neutrality fee is $2.45/ton of garbage collected. Currently, the residential monthly garbage rates are $17.17 for 32 gallons, $28.57 for 64 gallons and $39.96 for 96 gallons. Currently, standard front-loader commercial monthly garbage rates are $66.46 for 1 cubic yard of waste with one pick-up a week and $200.93 for 3 cubic yards of waste with one pick-up a week.
The garbage rates in Service Area Two (Oro Loma Sanitary District) are increased annually on September 1st by 80 percent of the CPI. Service Area Two does not use operating ratios. Waste Management of Alameda County collects the garbage fees from the customers and than pays San Leandro a franchise fee, which is 10 percent of Waste Management"s gross revenues. Currently, the residential monthly garbage rates are $9.53 for 32 gallons, $19.06 for 64 gallons and $28.59 for 96 gallons. Currently, standard front-loader commercial monthly garbage rates for 3 cubic yards of waste with one pick-up a week is $173.53.
San Mateo Joint Powers Agreement: The San Mateo Joint Powers Agreement (JPA) consists of the unincorporated areas of San Mateo County and the following 10 cities: Burlingame, Hillsborough, San Mateo City, Foster City, Belmont, San Carlos, Redwood City, Atherton, Menlo Park and East Palo Alto. The San Mateo JPA combines its regulation of both residential and commercial garbage rates. An independent consultant hired by the JPA, determines the operating ratio and recommends the garbage collection rates for each jurisdiction within the San Mateo JPA based on that operating ratio. The operating ratio is 0.915. The individual cities within the San Mateo JPA have the authority to accept or reject the recommended garbage collection rates. The San Mateo JPA has a longstanding exclusive agreement with BFI to collect both residential and commercial garbage, which was renegotiated in 1999 and will expire in 2006-2007. The franchise fees are as follows: (a) Atherton, five percent; (b) Belmont, five percent; (c) Burlingame, five percent; (d) East Palo Alto, 2.5 percent; (e) Foster City, 2.5 percent; (f) Hillsborough, five percent; (g) Menlo Park, five percent; (h) Redwood City 13 percent; (i) San Carlos, five percent; (j) San Mateo, 2.5 percent; and, (k) unincorporated areas of San Mateo County, none. The current monthly residential and commercial garbage rates are shown in the table below. These rates are currently being reviewed and will be adjusted in 2002. The garbage rates are adjusted based on in-depth garbage rate reviews.
Based on discussions with the respondent, two factors that influence the cost of commercial garbage rates in East Palo Alto are: (1) a 13 percent AB 939 surcharge on the commercial garbage rates to cover the costs of recycling efforts in East Palo Alto; and (2) the trash collection requirements in East Palo Alto. According to the respondent, in order to cover the cost of East Palo Alto"s recycling efforts, there is a 13 percent surcharge on commercial waste. The respondent advises that no other jurisdiction in the San Mateo JPA imposes this 13 percent surcharge. If the surcharge were removed, the standard front-loader commercial monthly garbage rates would be $124.88 for one cubic yard of waste with one pick-up per week and $263.84 for three cubic yards of waste with one pick-up per week. According to the respondent, it costs BFI more to collect trash in East Palo Alto because BFI is required to pick up all trash whether it is inside or outside the trash bin and the remaining jurisdictions require the customers to call BFI for a special pick up for any trash that does not fit in a trash bin. The customers are charged for the special pick up. The more time it takes for BFI to collect trash, the more it costs BFI to collect the trash and such costs are passed along to East Palo Alto customers.
City of Santa Clara: Santa Clara combines its regulation of both residential and commercial garbage rates. Santa Clara has had an exclusive agreement with Mission Trail Waste System for approximately 40 years to collect both residential and commercial garbage in Santa Clara. The existing contract with Mission Trail Waste System will expire on December 31, 2010 unless a contract extension is granted by the City Council. The City of Santa Clara does not use operating ratios. The franchise fee for residential and commercial garbage collection is five percent of tariff revenue, which is 51 percent of the applicable garbage rate. The City of Santa Clara directly charges and collects the garbage fees from the residents and then pays the garbage collector a set contract amount. The garbage rates are increased annually based on the CPI. Currently, the residential monthly garbage rates are $8.60 for 32 gallons, $15.48 for 64 gallons and $22.36 for 96 gallons. Currently, the standard front-loader, commercial monthly garbage rate is $131.09 for 3 cubic yards of waste with one pick-up a week.
City of Santa Rosa: Santa Rosa combines its regulation of both residential and commercial garbage rates. Santa Rosa has contracted with Empire Waste Management (Waste Management) for the past approximately 50 years to collect both residential and commercial garbage in Santa Rosa. The operating ratio for residential and commercial garbage collection is 0.96. Santa Rosa anticipates going out to bid for the collection of residential and commercial garbage in June of 2002 for services to begin in February of 2006. The current franchise fee is three percent. Garbage rates are currently adjusted based on an annual garbage rate review. Currently, residential monthly garbage rates are $8.25 for 35 gallons, $12.00 for 60 gallons and $21.25 for 90 gallons. Currently, standard front-loader commercial monthly garbage rates are $95.80 for one cubic yard of waste with one pick-up per week and $177.45 for three cubic yards of waste with one pick-up per week.
City of Sunnyvale: Sunnyvale combines its regulation of both residential and commercial garbage rates. Sunnyvale has an exclusive agreement with Bay Counties Waste Services to collect both residential and commercial garbage in Sunnyvale, which was selected through a RFP process in 1990 and will expire on June 30, 2011. The current operating ratio is 0.915. The current franchise fee is $1,382,095 and is remitted to the General Fund. The franchise fee is adjusted annually by CPI. The garbage rates are adjusted as needed to cover net expenses. Currently, the residential monthly garbage rates are $17.23 for 32 gallons, $22.59 for 64 gallons and $27.95 for 96 gallons. Currently, standard front-loader commercial monthly garbage rates are $72.26 for one cubic yard of waste with one pick-up a week and $156.77 for three cubic yards of waste with one pick-up a week.
West Valley Joint Powers Agreement: The West Valley Joint Powers Agreement (JPA) consists of Campbell, the Town of Los Gatos, Saratoga and Monte Sereno. The West Valley JPA combines its regulation of both residential and commercial garbage rates. The West Valley JPA negotiated its exclusive franchise agreement with Green Valley Disposal, a subsidiary of Waste Management, which expires in 2007, to collect both residential and commercial garbage in Campbell, Los Gatos, Saratoga and Monte Sereno. Green Valley Disposal was not selected through a request for proposals process, however, the West Valley JPA anticipates issuing a request for proposals prior to 2007. Green Valley Disposal has been the hauler for Los Gatos since the 1940s. The garbage rates for Monte Sereno were not available as of the writing of this report. Garbage rates are increased on July 1 annually based on a percent of the CPI and a percent of the Motor Fuel Index. However, Los Gatos has not increased its residential garbage rates over the past five years due to a surplus of funds available from the franchise fees. Even though residential garbage rates have not increased in Los Gatos over the past five years, commercial garbage rates have increased. Green Valley Disposal collects the garbage fees from its customers and pays each jurisdiction a franchise fee based on a formula written in the franchise agreement. The agreement with Green Valley Disposal will expire in 2007. The West Valley JPA anticipates issuing a request for proposals to select a new garbage hauler for residential and commercial garbage. The current monthly residential and commercial garbage rates are shown in the table below.
San Francisco: San Francisco regulates residential garbage rates but does not regulate commercial garbage rates. Individual commercial contracts are negotiated between Norcal and the generator of the commercial refuse. San Francisco has had a permit system since 1932 with Sunset Scavenger and Golden Gate Refuse, currently subsidiaries of Norcal, to collect residential and commercial garbage in San Francisco. The City-set operating ratio for Sunset Scavenger is 0.9155, although the current actual operating ratio for Sunset Scavenger (residential garbage collection) is 0.8914 and the operating ratio for Golden Gate Disposal (commercial garbage collection) is 0.7276. Currently, the residential monthly garbage rates are $14.83 for 32 gallons, $29.66 for 64 gallons and $44.49 for 96 gallons. The current standard front-loader commercial monthly garbage rates are $114.86 for one cubic yard of waste with one pick-up per week and $285.31 for three cubic yards of waste with one pick-up per week.
1 All commercial rates quoted in this survey are based on one-bin with weekly pick ups for either one or three cubic yards of waste.
2 San Leandro has a separate agreement with Waste Management whereby San Leandro receives payment from Waste Management based on the tonnage of waste that goes through Davis Street trash transfer station. Therefore, if Alameda County Industries does not use the Davis Street trash transfer station, then San Leandro"s payment from Waste Management is reduced.