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2021-33-Order No. 2021-003 Recorded 2/2/2021Recorded in Deschutes County CJ2021-33 REVIEWED Nancy Blankenship, County Clerk Commissioners' Journal 02/02/2021 11:24:02 AM LEGAL COUNSEL c\,,jcEs coG 2021-33 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Establishing Rates For Franchised Collection of Waste and Recyclables In The Unincorporated Areas of Deschutes County * ORDER NO.2021-003 * WHEREAS, Certain companies holding County franchises to collect solid waste within unincorporated areas of Deschutes County, Oregon have requested a collection rate increase in accordance with County policy; and WHEREAS, A qualified accounting firm has reviewed the rate request and determined the request is reasonable and justified; and WHEREAS, The Director of Solid Waste and the County Administrator have reviewed the rate request and made recommendations regarding rates and collection services; and WHEREAS, The Board of County Commissioners has reviewed the proposed adjustments and the Director of Solid (W� 7a7s�te's recommendation; now, therefore, 111D 171JA1�D O %C0 1VTTY �iVl�Vli`�155101VLR5 OF DESniHIJTT ES CV V71VT lr, VLD.IL.',iG 111�V, HEREBY ORDERS as follows: Section 1. The maximum rates for the collection of solid waste within the unincorporated area of Deschutes County designated the Distant Rural Collection Area served by Wilderness Garbage and Recycling Services set forth in Exhibit A, attached hereto and by this reference incorporated herein, are hereby approved effective February 1, 2021. Section 2. The maximum rates for the collection of solid waste and recyclables within the unincorporated area of Deschutes County designated the Rural Collection Area served by Cascade Disposal set forth in Exhibit B, attached hereto and by this reference incorporated herein, are hereby approved effective February 1, 2021. Section 3. The maximum rates for the collection of solid waste within the unincorporated area of Deschutes County designated as Distant Rural Collection Area served by Cascade Disposal, set forth in Exhibit C, attached hereto and by this reference incorporated herein, are hereby approved effective February 1, 2021. Section 4. The maximum rates for the collection of solid waste and recyclables within the unincorporated area of Deschutes County designated as Rural Collection Area served by Bend Garbage and Recycling Co., Inc., and High Country Disposal Co., Inc. set forth in Exhibit D, attached hereto and by this reference incorporated herein, are hereby approved effective February 1, 2021. PAGE I OF 2- ORDER No. 2021- 003 Section 5. The maximum rates for the collection of solid waste within the unincorporated area of Deschutes County designated as Distant Rural Collection Area served by Bend Garbage and Recycling Co. Inc., and High Country Disposal Co., Inc. set forth in exhibit E, attached hereto and by this reference incorporated herein, are hereby approved effective February 1, 2021. Section 6. The rates for container rent and transfer services provided by Deschutes Transfer Company to the Department of Solid Waste set forth in Exhibit F, attached hereto and by this reference incorporated herein, are hereby approved. Dated this 27th of January, 2021 ATTEST:, Recording Secretary PAGE 2 of 2- ORDER No. 2021- 003 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ANTHONY DeBONE, Chair - ix PHIT. CITANCT vir.e C'.hair PA 'TI ADAIR, Commissioner Exhibit A Maximum Rates for the Collection of Solid Waste within the Unincorporated Distant Rural Collection Area Served by Wilderness Garbage and Recycling Services Can and Roll Cart Services - Effective February 1, 2021 Rates as of Class of Service 1-Feb-21 One pickup of one can each week: 20 aallon can: curb or roadside $ 15.45 backyard or other $ 17.55 35 aallon can: curb or roadside I $ 18.18 backyard or other 1 $ 20.58 65 oallon can: curb or roadside $ 30.06 backyard or other $ 34.66 95 gallon can: curb or roadside backvard or othe One pickup of additional can each week: 35 aallon can: curb or roadside $ 1 12.53 backyard or other $ 14.68 Special services: 35 gallon can special curb or roadside pickup (rate per pickup) $ 11.68 backyard or other $ 12.58 Bulk Rate for the Collection of Bulk Refuse: $13.60 per yard "or" a service fee of $67.00 per hour for 1 truck and driver ($96.60 per hour for 2 men) plus disposal fees. If the need for a type of service arises that is not now foreseen or specifically covered by this rate schedule, then the charge for such service shall be: 1. Uniform and non-discriminatory between customers of a collector; 2. Commensurate with the rates generally charged in unincorporated Deschutes County; 3. Subiect to approval by Deschutes Countv. Exhibit A - Continued Maximum Rates for the Collection of Solid Waste within the Unincorporated Distant Rural Collection Area Served by Wilderness Garbage and Recycling Services Container Services - Effective February 1, 2021 Service Provided Number of Services (Pickups) Per Week 1 2 3 4 5 6 1.5 Cubic Yard Container $ 155.57 $ 281.97 $ 408.35 $ 539.75 $ 661.11 $ 787.54 2 Cubic Yard Container $ 201.59 $ 368.02 $ 534.47 $ 700.88 $ 867.31 $ 1,033.74 3 Cubic Yard Container $ 277.30 $ 504.15 $ 731.02 $ 957.90 $ 1,184.76 $ 1,411.64 Compactor Rates: Compactor containers will have a disposal charge at 3.0 times the uncompacted rate. The service fees shall be the same as those charged for uncompacted containers. Exhibit B Maximum Rates for the Collection of Solid Waste Within the Unincorporated Rural Collection Area Served by Cascade Disposal Can and Roll Cart Services - Effective February 1, 2021 Rates as of Class of Service 1-Feb-21 One pickup of one can each week: 20 aallon can: curb or roadside $ 14.85 backyard or other $ 16.55 35 aallon can: Erb or roadside $ 17.75 backyard or other $ 19.70 65 gallon can: curb or roadside $ 27.55 backyard or other $ 30.65 95 gallon can: curb or roadside $ 33.80 backyard or other $ 36.10 One pickup of additional can each week: 35 oallon can: curb or roadside $ 10.25 backyard or other $ 11.95 Special services: 35 gallon can special pickup (rate per pickup) $ 12.45 Bulk Rate for the Collection of Bulk Refuse: $12.50 per yard "or" a service fee of $60.50 per hour for 1 truck and driver ($87.10 per hour for 2 men) plus disposal fees. If the need for a type of service arises that is not now foreseen or specifically covered by this rate schedule, then the charge for such service shall be: 1. Uniform and non-discriminatory between customers of a collector; 2. Commensurate with the rates generally charged in unincorporated Deschutes County; 3. Subject to approval by Deschutes County. Exhibit B - Continued Maximum Rates for the Collection of Solid Waste Within the Unincorporated Rural Collection Area Served by Cascade Disposal Container Services - Effective February 1, 2021 Service Provided Number of Services (Pickups) Per Week 1 2 3 4 5 6 1 Cubic Yard Container $ 92.12 $ 166.02 $ 239.97 $ 313.76 $ 387.79 $ 461.70 1.5 Cubic Yard Container $ 125.99 $ 232.29 $ 338.52 $ 444.79 $ 551.08 $ 657.38 2 Cubic Yard Container $ 163.32 $ 303.37 $ 443.41 $ 583.45 $ 723.48 $ 863.52 3 Cubic Yard Container $ 226.22 $ 418.12 $ 610.09 $ 802.03 $ 993.98 $1,185.91 4 Cubic Yard Container $ 283.92 $ 526.67 $ 769.45 $ 1,012.25 $ 1,254.98 $1,497.74 5 Cubic Yard Container $ 342.69 $ 634.00 $ 925.30 $ 1,216.58 $ 1,507.87 $1,799.19 6 Cubic Yard Container $ 398.14 $ 734.75 $ 1,071.36 $ 1,407.97 $ 1,744.57 $ 2,081.16 8 Cubic Yard Container $ 489.90 1 $ 904.90 $ 1,319.88 1 $ 1,734.87 1 $ 2,149.87 1 $ 2,564.86 Compactor Rates: Compactor containers will have a disposal charge at 3.0 times the uncompacted rate. The service fees shall be the same as those charged for uncompacted containers. Exhibit C Maximum Rates for the Collection of Solid Waste within the Unincorporated Distant Rural Collection Area Served by Cascade Disposal Can and Roll Cart Services - Effective February 1, 2021 Rates as of Class of Service 1-Feb-21 One pickup of one can each week: 20 gallon can: curb or roadside backyard or other 35 oallon can: 15.95 18.15 curb or roadside $ 18.40 backyard or other $ 20.85 65 gallon can: curb or roadside $ 30.35 backyard or other $ 35.00 95 gallon can: curb or roadside $ 38.05 backyard or other ' $ 41.00 One pickup of additional can each week: 35 gallon can: curb or roadside $ 12.60 backyard or other $ 14.80 Special services: 35 gallon can special pickup (rate per pickup) $ 11.70 Bulk Rate for the Collection of Bulk Refuse: $14.10 per yard "or" a service fee of $71.50 per hour for 1 truck and driver ($100.15 per hour for 2 men) plus disposal fees. If the need for a type of service arises that is not now foreseen or specifically covered by this rate schedule, then the charge for such service shall be: 1. Uniform and non-discriminatory between customers of a collector; 2. Commensurate with the rates generally charged in unincorporated Deschutes County; 3. Subject to approval by Deschutes County. Exhibit C - Continued Maximum Rates for the Collection of Solid Waste within the Unincorporated Distant Rural Collection Area Served Cascade Disposal Container Services - Effective February 1, 2021 Service Provided Number of Services (Pickups) Per Week 1 2 3 4 5 6 1 Cubic Yard Container $ 114.12 $ 205.36 $ 296.65 $ 387.91 $ 479.14 $ 570.39 1.5 Cubic Yard Container $ 155.86 $ 286.97 $ 418.05 $ 549.17 $ 680.26 $ 811.40 2 Cubic Yard Container $ 201.97 $ 374.68 $ 547.41 $ 720.12 $ 892.86 $ 1,065.57 3 Cubic Yard Container $ 279.37 $ 515.67 $ 752.01 $ 988.35 $ 1,224.67 $ 1,461.00 4 Cubic Yard Container $ 350.29 $ 648.85 $ 947.44 $ 1,246.03 $ 1,544.63 $ 1,843.19 5 Cubic Yard Container $ 422.52 $ 780.44 $ 1,138.42 $ 1,496.37 $ 1,854.33 $ 2,212.31 6 Cubic Yard Container $ 490.58 $ 903.85 $ 1,317.11 $ 1,730.40 $ 2,143.69 $ 2,556.97 8 Cubic Yard Container $ 602.65 1 $ 1,111.24 $ 1,619.79 $ 2,128.36 $ 2,636.93 $ 3,145.51 Compactor Rates: Compactor containers will have a disposal charge at 3.0 times the uncompacted rate. The service fees shall be the same as those charged for uncompacted containers. Exhibit D Maximum Rates for the Collection of Solid Waste Within the Unincorporated Rural Collection Area Served by Bend Garbage and Recycling Company, Inc., and High Country Disposal Company, Inc. Can and Roll Cart Services - Effective February 1, 2021 Rates as of Class of Service 1-Feb-21 One pickup of one can each week: 20 oallon can: curb or roadside $ 15.44 backyard or other $ 17.21 35 oallon can: curb or roadside $ 18.46 backyard or other $ 20.49 65 Qallon can: curb or roadside $ 28.65 backyard or other $ 31.88 95 Qallon can: curb or roadside $ 35.15 backyard or other $ 37.54 One pickup of additional can each week: 35 Qallon can: curb or roadside I $ backyard or other $ E1243 services: 35 gallon can special pickup (rate per pickup) $ 12.95 Bulk Rate for the Collection of Bulk Refuse: $13.00 per yard "or" a service fee of $62.92 per hour for 1 truck and driver ($90.58 per hour for 2 men) plus disposal fees. If the need for a type of service arises that is not now foreseen or specifically covered by this rate schedule, then the charge for such service shall be: 1. Uniform and non-discriminatory between customers of a collector; 2. Commensurate with the rates generally charged in unincorporated Deschutes County; 3. Subject to approval by Deschutes County. Exhibit D - Continued Maximum Rates for the Collection of Solid Waste Within the Unincorporated Rural Collection Area Served by Bend Garbage and Recycling Company, Inc., and High Country Disposal Company, Inc. Container Services - Effective February 1, 2021 Number of Services (Pickups) Per Week Service Provided 1 21 31 41 5 6 1 Cubic Yard Container $ 95.80 $172.66 $ 249.57 $ 326.31 $ 403.30 $ 480.17 1.5 Cubic Yard Container $131.03 $ 241.58 $ 352.06 $ 462.58 $ 573.12 $ 683.68 2 Cubic Yard Container $169.85 $ 315.50 $ 461.15 $ 606.79 $ 752.42 $ 898.06 3 Cubic Yard Container $ 235.27 $ 434.84 $ 634.49 $ 834.11 $1,033.74 $1,233.35 4 Cubic Yard Container $295.28 $547.74 $ 800.23 $1,052.74 $1,305.18 $1,557.65 5 Cubic Yard Container $ 356.40 $ 659.36 $ 962.31 $1,265.24 $1,568.18 $1,871.16 6 Cubic Yard Container $ 414.07 $ 764.14 $1,114.21 $1,464.29 $1,814.35 $ 2,164.41 8 Cubic Yard Container $ 509.50 $ 941.10 $1,372.68 $1,804.26 $ 2,235.86 $ 2,667.45 Compactor Rates: Compactor containers will have a disposal charge at 3.0 times the uncompacted rate. The service fees shall be the same as those charged for uncompacted containers. Exhibit E Maximum Rates for the Collection of Solid Waste within the Unincorporated Distant Rural Collection Area Served by Bend Garbage and Recycling Co., Inc., and High Country Disposal Co., Inc. Can and Roll Cart Services - Effective February 1, 2021 Rates as of Class of Service 1-Feb-21 One pickup of one can each week: 20 gallon can: curb or roadside $ 16.59 backyard or other $ 18.88 35 gallon can: curb or roadside $ 19.14 backyard or other $ 21.68 65 aallon can: curb or roadside $ 31.56 backyard or other $ 36.40 95 gallon can: curb or roadside $ 3 9. 57 backyard or other $ 42.64 One pickup of additional can each week: 35 oallon can: curb or roadside $ 13.10 backyard or other $ 15.39 ial services: 35 gallon can special pickup (rate per pickup) $ 12.17 Bulk Rate for the Collection of Bulk Refuse: $14.64 per yard "or" a service fee of $74.36 per hour for 1 truck and driver ($104.16 per hour for 2 men) plus disposal fees. If the need for a type of service arises that is not now foreseen or specifically covered by this rate schedule, then the charge for such service shall be; 1. Uniform and non-discriminatory between customers of a collector; 2. Commensurate with the rates generally charged in unincorporated Deschutes County; 3. Subject to approval by Deschutes County. Exhibit E - Continued Maximum Rates for the Collection of Solid Waste within the Unincorporated Distant Rural Collection Area Served by Bend Garbage and Recycling Co., Inc., and High Country Disposal Co., Inc. Container Services - Effective February 1, 2021 Number of Services (Pickups) Per Week Service Provided 1 2 31 41 5 6 1 Cubic Yard Container $ 118.68 $ 213.57 $ 308.52 $ 403.43 $ 498.31 $ 593.21 1.5 Cubic Yard Container $ 162.09 $ 298.45 $ 434.77 $ 571.14 $ 707.47 $ 843.86 2 Cubic Yard Container $ 210.05 $ 389.67 $ 569.31 $ 748.92 $ 928.57 $ 1,108.19 3 Cubic Yard Container $ 290.54 $ 536.30 $ 782.09 $ 1,027.88 $ 1,273.66 $ 1,519.44 4 Cubic Yard Container $ 364.30 $ 674.80 $ 985.34 $ 1,295.87 $ 1,606.42 $ 1,916.92 5 Cubic Yard Container $ 439.42 $ 811.66 $ 1,183.96 $ 1,556.22 $ 1,928.50 $ 2,300.80 6 Cubic Yard Container $ 510.20 $ 940.00 $ 1,369.79 $ 1,799.62 $ 2,229.44 $ 2,659.25 8 Cubic Yard Container $ 626.76 $ 1,155.69 $ 1,684.58 $ 2,213.49 $ 2,742.41 $ 3,271.33 Compactor Rates: Compactor containers will have a disposal charge at 3.0 times the uncompacted rate. The service fees shall be the same as those charged for uncompacted containers. Exhibit F Rates for container rental and transfer services provided by Deschutes Transfer Company to the Department of Solid Waste Rates Effective February 1, 2021 Refuse Transfer Rates Northwest Transfer Station $304.00 per load Southwest Transfer Station $304.00 per load Alfalfa Transfer Station $150.00 per load Negus Transfer Station $13.94 per ton Recycling Drop Box Transfer Rates Northwest Transfer Station Recycling $135.00 per load Ne us Transfer Station Recycling Southwest Transfer Station Recycling Alfalfa Transfer Station Recycling Container Rental Rates $135.00 $135.00 $135.00 per load per load per load 40 yard Security Box $87.50 per month 30 yard Drop Box $70.00 per month 40 Yard Drop Box $51.50 per month DES p Ll Department of Solid Waste A "V- < 61050 SE 27th Street • Bend, Oregon 97702 (541 ) 317-3163 FAX (541 ) 317-3959 To: BOCC From: Timm Schimke, Director CC: Tom Anderson, County Administrator INTRODUCTION High Country Disposal and Bend Garbage and Recycling are two companies holding solid waste collection franchises in the unincorporated areas of Deschutes County. Each of the incorporated cities have their own franchise ordinance and set the collection rates in their jurisdictions. High Country Disposal's service area includes unincorporated areas north of Tumalo Road and includes the area around and between the cities of Redmond and Sisters. Bend Garbage and Recycling's service area includes unincorporated areas north of US 20 to Tumalo Road and includes the community of Tumalo. have attached a map showing the franchised areas. Both companies have submitted a request for a collection rate increase as stipulated by County Code. Deschutes County dictates the minimum level of service that a franchise must provide, and a maximum fee that can be charged for those services. Companies are expected to operate within a 9%to 12% profit. Should profits drop below 9%, companies are allowed to request an increase in their rates. Franchised companies submit annual financial reports for review and pay a 3% of their gross receipts in franchise fees to the County. The companies reported the following profit in 2019. High Country Disposal — 6.3% Bend Garbage and Recycling — 6.6% FINDINGS The companies have requested a 4% increase in their collection rates. The Department of Solid Waste retained a Certified Public Accounting firm to review documents and to determine if the request is reasonable and justified. The accountants report indicates that: • Republic Services purchased both franchises in April of 2019. There is no indication that the acquisition costs were included in the financial statements and such costs are not a factor in the rate request, which is appropriate. • Claimed depreciation of assets appears to be slightly overstated. Adjusting for the overstatements would not push the profit range into the acceptable level, and granting a 4% increase in collection rates will not push the profit range above acceptable levels. The Solid Quality Services Performed with Pride Waste Department plans to address depreciation as part of a review and update of the County's franchise code in the future. • Based on revenue and expense projections a 4% increase in collection rates will result in the following profit percentage for each company o High Country Disposal — 9.75% o Bend Garbage and Recycling — 7.75% The accountants report has been positively reviewed by both the County Administrator and the County Internal Auditor. The requested increase will have the following impact for a once a week collection. Current February 1, 2021 Increase 32 gallon can weekly service $17.75/mo. $18.46/mo. $.71/mo. 65 gallon can weekly service $27.55/mo. $28.65/mo. $1.10/mo. 95 gallon can weekly service $33.80/mo. $35.15/mo. $1.35/mo. The requested rate adjustment has been reviewed and found to be reasonable and justified. The Solid Waste Department recommends approval of Board Order 2021-003. OTHER You can see on the map that franchised areas have either a "rural" designation, or a "distant rural" designation. In the rural collection areas we have implemented limited curbside collection of recyclables, while the distant rural collection areas have no curbside collection of recyclables. Those citizens can deliver their recyclables to either a depot or the disposal sites. We are working to develop a curbside collection service in the distant rural areas. We get requests for such a service, and both our Solid Waste Management Plan and DEQ would like to see expansion of those services. The main challenge is low population densities which drives up the cost per customer RURAL / DISTANT RURAL BOUNDARY Exhibit "A" u`zu a ~L I HIGH COUNTR"E - DISPOSAL, INC. , Dls6n urat Area ate: BEND GARBAGE & RECYCLING, INC. w�. - 11 L BRbWNRIGG INVESTMENTS, INC' r° t _r LA PINE DISPOSAL;] OHP Am nt Rural area S `.t l4. D 4 M14s RURALI D"TANI RURAL BOUNDARY KEY NFRANCHI,E BOLWWJES ®River IImh=4 Miles November27.2001 ® A:re f filirM �MSERUl l+v NODi1ECI. am qty —_ -_.. MCLMu.CS 4DUYtY o.w.� ..er�t o�nnuisKn� .Nk 4D�A TA.YANTYrFf 'sct-(�Rnrr�yr Saatcvil�ne /fpRF,F1 iP.YY dNwt-yNb..l K "'�r0^rn��Wp� flLa lMY'1.5Wp !\i 4nerrae Styr Vdgnlc lAmumeU • aim Mba�aw0�v.ed x......m�a f ^' .. '... 171a•Rnw D.s Ues Fmt tServke inns✓... w..nm v� E S C0G2 o-A Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - Fax (541) 385-3202 - https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners BOCC Wednesday Meeting of January 27, 2021 DATE: January 21, 2021 FROM: Timm Schimke, Solid Waste, 541-317-3177 TITLE OF AGENDA ITEM: Consideration of Board Signature of Order No. 2021-003, Establishing Franchised Solid Waste Collection Rates RECOMMENDATION & ACTION REQUESTED: The rate request by High Country Disposal and Bend Garbage and Recycling has been reviewed and determined to be reasonable and justified. Staff recommends approval of Board Order 2021-003 BACKGROUND AND POLICY IMPLICATIONS: See attached report FISCAL IMPLICATIONS: See attached report ATTENDANCE: Timm Schimke