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2022-209-Order No. 2022-029 Recorded 6/3/2022Recorded in Deschutes County C J2022-209 RE IEWED Steve Dennison, County Clerk Mml/ Commissioners' Journal 06/03/2022 3:47:26 PM LEGAL COUNSEL II I I I IIII IIIIII I I IIIIIIIII II III 2� x: 2022-209 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Establishing Rates for Franchised Collection and Transfer of Waste and Recyclables * ORDER NO. 2022-029 in the Unincorporated Areas of Deschutes County WHEREAS, Certain companies holding County franchises to collect and transfer solid waste within unincorporated areas of Deschutes County, Oregon have requested a rate increase and service addition in accordance with County policy; and WHEREAS, The Director of Solid Waste and the County Administrator have reviewed the rate request and service addition and made recommendations regarding rates and services; and WHEREAS, The Board of County Commissioners has reviewed the proposed adjustments and the Director of Solid Waste's recommendation; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY ORDERS as follows: Section 1. The maxirnurn rates for collection of solid waste within the unincorporated area of Deschutes County designated as 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 June 1, 2022. Section 2. The maximum rates for collection of solid waste within the unincorporated area of Deschutes County designated as 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 June 1, 2022. Section 3. The maximum rates for collection of solid waste within the unincorporated area of Deschutes County designated as the 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 June 1, 2022. Section 4. The maximum rates for collection of solid waste within the unincorporated area of Deschutes County designated as the Rural Collection Area served by Bend Garbage and Recycling Company, Inc. and High Country Disposal Company, Inc. set forth in Exhibit D, attached hereto and by this reference incorporated herein, are hereby approved effective June 1, 2022. Section 5. The maximum rates for collection of solid waste within the unincorporated area of Deschutes County designated as the Distant Rural Collection Area served by Bend Garbage and Recycling Company, Inc. and High Country Disposal Company, Inc. set forth in Exhibit E, attached hereto and by this reference incorporated herein, are hereby approved effective June 1, 2022. Section 6. The maximum rates for container rental and transfer of solid waste and recyclables collected at Deschutes County's Northwest, Southwest, Alfalfa and Negus Transfer Stations provided by Deschutes PAGE 1 of 8- ORDER No. 2022-029 Transfer set forth in Exhibit F, attached hereto and by this reference incorporated herein, are hereby approved effective June 1, 2022. Dated this of �, 2022 ATTEST: Recording Secretary BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON hd PATTI ADAIR, Chair ANTHONY DeBONE, Vice Chair PHIL CHANG, Commissioner PAGE 2 OF 8- ORDER No. 2022-029 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 June 1, 2022 Class of Service Rate (per month) One pickup of one can each week: 20 gallon can: Curb or Roadside $15.45 Backyard or other $17.55 35 gallon can: Curb or Roadside $18.18 Backyard or other $20.58 65 gallon can: Curb or Roadside 1 $30.06 Backyard or other $34.66 95 gallon can: Curb or Roadside $37.94 Backyard or other $40.84 One pickup of additional one each week: 35 gallon can: Curb or Roadside $12.53 Backyard or other $14.68 Special Services: 35 gallon can: Special curb or roadside pickup (rate per pickup) $11.65 Backyard or other $12.58 Bulk Rate for the Collection of Bulk Refuse: $13.60 per cubic yard "or" a service fee of $67.00/hour for 1 truck and driver ($96.60/hour for 2 workers) plus disposal fees. If the need for a type of service arises that in 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. Container Service Provided Number of Pickups/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 4 cubic yard container $352.17 $640.27 $928.40 $1,216.53 $1,504.65 $1,792.78 6 cubic yard container $447.26 $813.14 $1,179.06 $1,545.00 $1,910.90 $2,276.83 Compactor Container Rates: Compactor containers will have a disposal charge 3.0 times the uncompacted disposal rate. The service fee shall be the same as those charged for uncompacted containers. PAGE 3 OF 8- ORDER No. 2022-029 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 June 1, 2022 Class of Service Rate (per month) One pickup of one can each week: 20 gallon can: Curb or Roadside $14.85 Backyard or other $16.55 35 gallon can: Curb 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 one each week: 35 gallon 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 cubic yard "or" a service fee of $60.50/hour for 1 truck and driver ($87.10/hour for 2 workers) plus disposal fees. If the need for a type of service arises that in 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. Container Service Provided Number of Pickups/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 $904.90 $1,319.88 $1,734.87 $2,149.87 $2,564.86 Compactor Container Rates: Compactor containers will have a disposal charge 3.0 times the uncompacted disposal rate. The service fee shall be the same as those charged for uncompacted containers. PAGE 4 of 8- ORDER No. 2022-029 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 June 1, 2022 Class of Service Rate (per month) One pickup of one can each week: 20 gallon can: Curb or Roadside $15.95 Backyard or other $18.15 32 gallon can: Backyard or other with weekly comingle and glass collection (Sunriver only) $34.85 35 gallon can: 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 one 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 cubic yard "or" a service fee of $71.50/hour for 1 truck and driver ($100.15/hour for 2 workers) plus disposal fees. If the need for a type of service arises that in 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. Container Service Provided Number of Pickups/Week 1 2 3 4 5 6 1 cubic yard container $114.12 $205.65 $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 $1,065.87 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 $1,111.24 $1,619.79 $2,128.36 $2,636.93 $3,145.51 Compactor Container Rates: Compactor containers will have a disposal charge 3.0 times the uncompacted disposal rate. The shall be the same as those charged for uncompacted containers. service fee PAGE 5 of 8- ORDER No. 2022-029 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 June 1, 2022 Class of Service Rate (per month) One pickup of one can each week: 20 gallon can: Curb or Roadside $15.44 Backyard or other $17.21 35 gallon can: Curb or Roadside $18.46 Backyard or other $20.49 65 gallon can: Curb or Roadside $28.65 Backyard or other $31.88 95 gallon can: Curb or Roadside $35.15 Backyard or other $37.54 One pickup of additional one each week: 35 gallon can: Curb or Roadside $10.66 Backyard or other $12.43 Special Services: 35 gallon special pickup (rate per pickup) $12.95 Bulk Rate for the Collection of Bulk Refuse: $13.00 per cubic yard "or" a service fee of $62.92/hour for 1 truck and driver ($90.58/hour for 2 workers) plus disposal fees. If the need for a type of service arises that in 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. Container Service Provided Number of Pickups/Week 1 2 3 4 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 Container Rates: Compactor containers will have a disposal charge 3.0 times the uncompacted disposal rate. The service fee shall be the same as those charged for uncompacted containers. PAGE 6 OF 8- ORDER No. 2022-029 Exhibit E Maximum Rates for the Collection of Solid Waste within the Unincorporated Distant Rural Collection Area Served by Bend Garbage and Recycling Company, Inc. and High Country Disposal Company, Inc. Cans and Roll Cart Services - Effective June 1, 2022 Class of Service Rate (per month) 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 gallon can: Curb or Roadside $31.56 Backyard or other $36.40 95 gallon can: Curb or Roadside $39.57 Backyard or other $42.64 One pickup of additional one each week: 35 gallon can: Curb or Roadside $13.10 Backyard or other $15.39 Special Services: 35 gallon can special (rate per pickup) $12.17 Bulk Rate for the Collection of Bulk Refuse: $14.64 per cubic yard "or" a service fee of $74.36/hour for 1 truck and driver ($104.16/hour for 2 workers) plus disposal fees. - - - - --------- -- ---- - - __-- -- -- If the need for a type of service arises that in 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. Container Service Provided Number of Pickups/Week 1 2 3 4 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 Container Rates: Compactor containers will have a disposal charge 3.0 times the uncompacted disposal rate. The service fee shall be the same as those charged for uncompacted containers. PAGE 7 OF 8- ORDER No. 2022-029 Exhibit F Rates for Container Rental and Transfer Services Provided by Deschutes Transfer Company to the Department of Solid Waste Effective June 1, 2022 Refuse Transfer Rates Northwest Transfer Station $364.80/load Southwest Transfer Station $364.80/load Alfalfa Transfer Station $180.00/load Negus Transfer Station $16.73/ton Recycling Drop Box Transfer Rates Northwest Transfer Station $162.00/load Southwest Transfer Station $162.00/load Alfalfa Transfer Station $162.00/load Negus Transfer Station $162.00/load Container Rental Rates 40 cubic yard security box $105.00/month 30 cubic yard drop box $74.00/month 40 cubic yard drop box $61.80/month PAGE 8 OF 8- ORDER No. 2022-029 Republic Services -Deschutes Transfer 2022 Rate Adjustment Request Actual and Projected Financial Information ACTUAL PROJECTION 2021 vs PROJECTION REVENUES 2021 2022 2021vs 2022 2022 % 2022 +20% Refuse Transfer 865.917.14 887,367.39 21,450.25 2.429%. 1,064,841 Recycle Box - Haul 123,685.84 127,891.16 4.205.32 3.29% 153,469 Recycle Box - Rent 25.640.67 26,512.45 871.78 3.29% 31,815 Contract Hauling 0.00 0.00 0.00 0.00% 0 Co -Mingled Recycling Hauls 102,531.09 99,000.00 (3,531.09) -3.57% 118,800 TOTAL REVENUES 1,117,774.74 1,140,771,00 22,996.26 2.02% 1,368,925.20 OPERATING COSTS COLLECTION COSTS Wages 414,490.86 427.898.00 13.407.14 3.13% 427.898.00 Payroll Taxes 26,282.02 27,135.00 852.98 3.14% 27,135.00 Employee Benefits 40,527.36 39,266.00 (1,261.36) -3.21% 39,266.00 Fuel and Oil 114,957.37 130,731.00 15,773.63 12.07% 130,731.00 Repairs and Maintenance 91,536.97 155,943.00 64,406.03 41.30% 155,943.00 Equipment Rental 0.00 0.00 0.00 0.00% 0.00 Depreciation 119,916.15 134,898.00 14,981.85 11.11% 134,898.00 Insurance 44,827.56 46,599.00 1,771.44 3.80% 46,599.00 Supplies 0.00 0.00 0.00 0.00% 0.00 Other Operating Costs 7,476.24 9,543.00 2,066.76 21.66% 9,543.00 TOTAL COLLECTION COSTS 860.014.53 972,013.00 111,998.47 11.52% 972,013.00 GENERAL AND ADMINISTRATIVE COSTS Management Salaries 71,990.90 80,103.00 8,112.10 10.13% 80,103.00 Advertising and Promotion 0.00 0.00 0.00 0.00% 0.00 Legal Fees 0.00 0.00 0.00 0.00% 0.00 Professional Fees 251.30 459.00 207.70 45.25% 459.00 Telephone and Utilities 4,281.22 1,468.00 (2,813.22) -191,64% 1,468.00 Taxes and Licenses 52,579.76 51,727.00 (852.76) -1.65% 51,727.00 Dues and Subscriptions 3,777.48 3,851.00 73.52 1.91 % 3,851.00 Rent 25,247.74 25,680.00 432.26 1.68% 25,680.00 Office Expenses 215.35 305.00 89.65 29.39% 305.00 Postage and Freight 0.00 58.00 58.00 100.00% 58.00 Travel and Lodging 0.00 0.00 0.00 0.00% 0.00 Meals and Entertainment 0.00 0.00 0.00 0.00% 0.00 Miscellaneous 55,987.68 56,225.00 237.32 0.42% 56,225.00 Interest expense - Allowable 0.00 0.00 0.00 0.00% 0.00 Franchise Fees 35,811.81 39,927.00 4,115.19 10.31% 39,927.00 TOTAL GENERAL AND ADMINISTRATIVE COSTS TOTAL OPERATING COSTS NET INCOME Prepared by: Republic Services of Oregon 250,143.24 259,803.00 9,659.76 3.72% 259,803.00 1,110,157.77 1,231,816.00 121,658.23 9.88% 1,231,816.00 7,616.97 (91,045.00) (98,661,97) -7.86% 137,109.20 0.68% -7.98% -8.66% 108.54% 10.02% Signature of General Manager % r�` ti �` Date: t �� L- �� BOARD OF COMMISSIONERS MEETING DATE: June 1, 2022 SUBJECT: Authorization of Rate Adjustments for Deschutes Transfer and Approval of Additional Container Services for Republic Services' Wilderness Disposal Service Area RECOMMENDED MOTION: Approval of Board Order 2022-029 to provide for a 20% rate adjustment for services provided to Deschutes County by Deschutes Transfer and authorization for Republic Services to implement additional container services and rates in their Wilderness Disposal service area. BACKGROUND AND POLICY IMPLICATIONS: Deschutes Transfer Rate Request Deschutes Transfer provides waste and recycling transfer services from the County's four rural transfer stations. Waste received at these facilities is hauled to Knott Landfill for disposal. Recyclables received at the transfer stations are accumulated in drop boxes rented from Deschutes Transfer and, depending on the commodity, are hauled to the Recycling Center at Knott Landfill for processing (primarily for Freon recovery from refrigerators, freezers and air conditioners), or are delivered to Republic Services' Mid - Oregon Recycling facility where the materials are consolidated for shipment to out -of - County recycling processors. As shown on the attached 2022 Rate Adjustment Request Detail, Deschutes Transfer operated at a very low net income margin of 0.68% in 2021. Their projection for 2022 shows that they will be operating at a -7.98% loss through 2022. The primary cost increases contributing to the revenue decline include employee wages, fuel and oil, repair and maintenance and depreciation. Republic Services has requested a 20% rate increase for the services they provide to the Solid Waste Department. This rate increase will bring their net income up to 10.02%, which is within the allowed 9-12% net revenue margin for the franchise. After review of the request and discussions with Republic Services, staff feels that the rate adjustment request is warranted and appropriate. It should be noted that the last rate increase granted to Deschutes Transfer was in August 2017. A comparison of the current and proposed rate changes are shown on the following table. Waste Transfer Rates Current Rate Proposed Rate Northwest Transfer Station $304.00 /load $364.80 /load Southwest Transfer Station $304.00 /load $364.80 /load Alfalfa Transfer Station $150.00 /load $180.00 /load Negus Transfer Station $13.94 /ton $16.73 /ton Recycling Transfer Rates Northwest Transfer Station $135.00 /load $162.00 /load Southwest Transfer Station $135.00 /load $162.00 /load Alfalfa Transfer Station $135.00 /load $162.00 /load Negus Transfer Station $135.00 /load $162.00 /load Container Rental Rate 40 cubic yard Security Box $87.50 /month $105.00 /month 30 cubic yard Drop Box $70.00 /month $84.00 /month 40 cubic yard Drop Box $51.50 /month $61.80 /month Wilderness Garbage and Disposal Service Additions Republic Services recently added a front load truck to their fleet which can accommodate larger size commercial containers. With this, they will be able to incorporate two larger waste containers into the service offering for their commercial customers. It is anticipated that commercial customers electing to move to the larger bins will see service cost savings through the reduction of pick-up frequency needed. The attached Board Order 2022-029 includes both the rate increase for Deschutes Transfer and the service addition and rates for Wilderness Disposal. BUDGET IMPACTS: Funds have been budgeted in the FY23 Solid Waste Operating Budget for the Deschutes Transfer rate increase. ATTENDANCE: Chad Centola, Director of Solid Waste Tim Brownell, Incoming Director of Solid Waste