HomeMy WebLinkAbout2013-0616 Study Session PACKET
CITY OF
ASHLAND
CITY COUNCIL STUDY SESSION
AGENDA
Monday, September 16, 2013
Siskiyou Room, 51 Winburn Way
5:30 p.m. Study Session
1. Look Ahead review
2. Discussion regarding the solid waste franchise agreement
3. Discussion regarding Job Council proposal
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1).
COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9
VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US
City of Ashland Council Meeting Look Ahead
""'THIS IS A DRAFT AND SUBJECT TO CHANGE*****
Departments ss cc ss cc ss CC JTMTG SS cc SS cc SS cc Ss cc SS cc
Responsible 9116 907 9130 1011 1004 1005 10129 1114 1 V5 11118 11119 1212 12/3 12/16 12117 1/6 117
9130 Bud et Committee Meeting in Council Chambers wao
1 Debrief on recent bud et process Lee/Dave Finance BDGT
9130 Stu Session in Council Chambers 9130
2 Review of financial management policies Lee Finance SS
10/1 Regular Council Meeting 1011
3 Annual update from the Public Arts Commission (Ann) Admin PRIES
a Presentation on Fire Adapted Communities Program John Fire PRES
5 Report and proposalfrom ORHA and ACCESS on a help center Admin UNFIN
for those in need Dave
8 Quarter) Report on Council Goals and Ob'ectives Dave Admin NEW
7 Approval of council liaisons for SDC and Downtown Study PW NEW
working groups Mike
8 Amendment to Mt. Ashland agreement Dave L. Legal NEW
9 Approval of an ordinance approving the Recology Franchise Admin ORD-2
reement Adam
10 Second reading of an ordinance revising the Business License CD Legal ORD-1 ORD-2
ordinance Bill/Dave L.
11 Second reading of an ordinance revising the TOT ordinance (Bill/ CD Legal ORD-1 ORD-2
Dave L.
12 Chapter 18 ordinance CD Le al ORD-1 ORD-2
10/14 Stu Session in Siski ou Room 10/14
13 Presentation on cost of service and rate design study for Electric Electric ss
Mark
14 Discussion of possible request that the ACH advisory board Admin ss
make regular reports to Council (request of Councilor Voisin
10/15 Regular Council Meeting 10/15 .
15 Annual update from the Forest Lands Commission John Fire PRIES
18 Public Hearin and approval of new Electric rates Mark Electric PH
10/29 Joint Meetin Parks & Council In Council Chambers) 1 10/291 1
17 Discussion of Parks funding and results of ad hoc committee Admin Parks NEW
work Dave/Don
1114 Stu Session in Siski ou Room 11/4
1e Council discussion of ordinance updates Dave L. Legal ss
19 Continued discussion of short term home rentals in R-1 zonings CD Admin Ss
BilUDave/Dave Legal
11/5 Regular Council Meeting 11/5
11/18 Stud Session in Siski ou Room 11/18
20 Discussion of regular reporting to Council by boards and Admin ss
commissions Dave
21 Future enhancements to the Plaza (request of Councilors Slattery Admin ss
and Lemhouse
11119 Regular Council Meeting 11/19
22 Council decision on keeping or removing the Road Diet Mike PW NEw
Page 1 of 2 9/1212013
City of Ashland Council Meeting Look Ahead
*****THIS IS A DRAFT AND SUBJECT TO CHANGE*****
Departments
Responsible 9)16 9117 9130 1011 10114 10115 10129 1114 1115 11118 11119 12/2 1213 12116 42117 116 1/1
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Discussion of reguleuq this pmVinp of medical medluene In resldeMlel ereee
Dey use Neu, for homeless
Discussion of diril to eue for study of wafer rel. ebunure Net M. fLneervegon end help
for iowJncome IrMMdusis x water bills
Report on prepereduns nude Wr drought yearn
update on Gty budding susuinaGlM report
Page 2 of 2 8/12/2013
CITY OF
ASHLAND
Council Communication
September 16, 2013, Study Session
Solid Waste Franchise Agreement Discussion
FROM:
Adam Hanks, Management Analyst, adam@ashland.or.us
SUMMARY
After the completion of the most recent solid waste collections rate increase in the fall of 2012,
Council directed staff to develop a revised and more comprehensive solid waste franchise agreement
ordinance to better address and define the current collection services offered by Recology Ashland
Sanitary (franchisee), as well as establish better rate making methodologies and adjustment processes.
Council also directed staff to address several policy questions raised in the rate review analysis
conducted by Bell & Associates as part of the 2012 rate increase deliberation, which include:
• Should Recology customers continue to subsidize costs associated with the Recycle
Center in addition to the rates already paying for curbside comingled recycling
collections?
• Should automation of collections services be encouraged or mandated for long term rate
stability?
• Should the existing yellow bag and sticker programs that allow customer controlled
delivery scheduling be retained? If so, should rates for those services be adjusted to
match the cost of the service?
BACKGROUND AND POLICY IMPLICATIONS:
The solid waste franchise is one of many franchise agreements in place within the City of Ashland and
functions as a contract between the City and the franchisee. To address many of the monthly and daily
operational details relating to collection services that are more prone to change over time, an
Administrative Operations Standards and Rules resolution has been drafted along with the more long
term, fixed foundation of the franchise ordinance. This allows for updating of service changes,
collection standards and equipment, reporting and rate increases without impacting the ordinance
framework.
Franchises Generally
Local municipalities utilize franchise agreements to ensure that certain key services are available to the
community regardless of the ever changing external market forces. Typical franchises include water,
wastewater, telecommunications, natural gas, electricity and solid waste/recycling collections.
A franchise establishes a set of services to be performed by another entity who agrees to the terms of
the franchise in exchange for the typically, but not always, exclusive right to perform the services
within the boundaries of the community.
Page 1 of 6
11FAWA
CITY OF
ASHLAND
The use of a franchise provides assurances that the desired services meet certain community standards
and the rates charged for the services provide a reasonable rate of return for the franchisee but are
contained by pre-established revenue and expense provisions in the franchise agreement. In exchange,
the franchisee pays an annual franchise fee to the municipality typically as a percent of annual revenue
and is assured of a long term revenue stream in which to operate and make capital investments for the
equipment necessary to provide the agreed upon services.
Existing Solid Waste Franchise Agreement
The current solid waste ordinance was established in June of 1990. The three page document granted a
15 year exclusive solid waste collection franchise to Ashland Sanitary Service (now Recology Ashland
Sanitary). In September of 1998, the franchise right was extended to March of 2018.
The franchise agreement establishes the right of the franchisee to petition the Council for rate increases
based on increased costs in providing the collection services. This was most recently requested by
Recology Ashland Sanitary in the fall of 2011 with Council approved partial rate increases in
December of 2011 and December of 2012.
In the rate increase deliberation leading up to the December 2012 final rate increase, the City
contracted with Bell & Associates to conduct an independent cost of service and rate analysis study to
determine the validity of the need for the rate increase. While the report concluded a rate increase was
warranted, the report also raised a significant number of policy and long term operations issues that
would only be solved with a comprehensive update of the franchise ordinance agreement.
Proposed Solid Waste Franchise Agreement
The attached draft ordinance and accompanying administrative policies and operations resolution were
developed with direction and feedback from the Council appointed working group that included three
Council members (Morris, Slattery, Voisin) and a representative of the Ashland Conservation
Commission (Beam).
The working group took input from Recology management staff and worked with City staff to develop
draft documents that address each of the significant policy issues raised in the Bell & Associates
report, including:
Recycle Center Operation
The Recycle Center has operated as a community facility since its dedication in 1990 and has provided
Ashland and Rogue Valley residents with a centralized location to recycle a variety of materials. The
center is located on City owned land and is operated by Recology staff both for on-site attendant and
materials hauling services.
Curbside comingled recycling collections began in 2007 providing additional recycling services and
opportunities for Recology customers in Ashland. The continuation of both recycling resources was
raised in the Bell Report as a potential redundancy in services that is being subsidized by the existing
residential and commercial Recology customers.
To separate the recycle center redundancy/subsidized policy question from the updating of the
franchise agreement and to allow for potential solutions outside of the confines of the franchise
Page 2 of 6
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CITY OF
ASHLAND
agreement, the working group suggested that the draft ordinance exclude the costs associated with
operation of the recycle center as an allowed expenditure for the franchisee. This removes the costs
from the rate calculations, which removes the rate payer subsidy issue, but also would require the
creation of an alternate funding source for the center to remain open and operational.
Operating Costs
The Recycle Center, as detailed in the Bell Report, has approximate annual costs of $155,000, with
roughly $30,000 relating to on-site attendant labor, $15,000 for program operating margin, $10,000 for
general administrative overhead and the remainder ($100,000) reflecting material hauling costs. The
Center does have an approximate revenue stream of $20,000 which varies from year to year depending
on the market rates for the various recycled materials.
The Bell Report details the comingle recycle collection percentage attributed to the Recycle Center
versus the curbside comingle collection. The percentage attributed to the Recycle Center was 6%,
although that figure was later corrected in a subsequent meeting to be 9%. What was not identified in
the report was the percentage of overall collection of cardboard at the Recycle Center, which is source
separated from the comingle recycle stream. If cardboard collections are included in the calculations,
the Recycle Center percentage of collections compared to curbside comingle increases to 16%.
Recology operates several truck routes for commercial cardboard collection that does not currently
have a fee, primarily because cardboard is one of the few recyclable materials that has consistently had
some level of monetary value in the market place. Should the Recycle Center close, Recology
anticipates additional costs associated with commercial cardboard collections that would need to be
reflected in rates in some fashion.
Policy Issues
Retaining the existing draft ordinance language making Recycle Center expenses unallowable results
in the closure of the facility, unless a separate contractual arrangement with an associated funding
solution is created to replace the current methodology.
Should Council desire additional time to explore other contractual arrangement and funding solutions,
additional language would need to be added to allow the expenses related to the Center to be allowable
for specified duration.
Automated Collection Systems
The current collection system relies heavily on the physical movements of the drivers to exit the
vehicle, roll a Recology bin from the truck to the customer's trash can, empty the customer can into the
Recology bin, roll the Recology bin back to the truck and connect it to the automated arm that lifts and
dumps it into the truck.
The draft ordinance encourages the transition to automation with the first phase being the mandated
use of Recology issued roll carts rather than customer cans. This allows the drivers to exit the vehicle,
roll the cart over to the truck, connect, dump and return. Phase two would involve the upgrading of
equipment as part of the replacement schedule to include a front loading automated truck. The
combination of uniform roll carts and an automated truck would give Recology the ability to re-assess
their driver routes to create at least one fully automated route, increasing efficiency and controlling
long term costs.
Page 3 of 6
CITY OF
ASHLAND
Yellow Bag/Sticker Program Costs
The yellow bag program and sticker programs are similar in that they both offer the ability for the
customer to pre-purchase a set number of service pick-ups (sold five at a time) and using them on the
scheduled day of their choosing. The sticker program differs from the yellow bag program in that the
customer can fill a standard 32 gallon trash can, rather than be limited to the much smaller yellow trash
bag. The programs are particularly beneficial for households that produce a relatively small amount of
trash and can store it on site for more than the standard one week pick up schedule.
To address the cost subsidy of the yellow bag, as well as to move the customer directed pick up
scheduling towards automation, the draft resolution eliminates the yellow bag program, but retains the
sticker program with the proposed mandated roll cart.
Recycle Only Rates
Another subsidy related issue identified by the Bell Report was the service policy that allowed any
Recology customer to be eligible for free curbside comingled recycling, regardless if they paid for any
standard monthly services or not. This service option created additional subsidies to other rate
Recology rate payers. The draft resolution includes a service rate for recycle only service, which
would apply to sticker and green yard waste customers.
Long Term Rate Stability
A significant factor in the decision to update the franchise agreement was the request by Recology for
a large rate increase (21%) in 2011. The draft ordinance and resolution has created a rate adjustment
structure that should eliminate large spikes in rates by the setting of a target operating margin (10%)
and triggering small annual automatic rate adjustments based on the Consumer Price Index (CPI) so
the franchisee maintains a similar operating margin from year to year.
If the franchisee estimates that the coming year will result in an operating margin below eight percent
(8%), the franchisee is permitted to request an adjustment larger than the CPI. If the coming year
estimate results in an operating margin above twelve percent (12%), the City can require a downward
rate adjustment. In both cases, the goal of the rate adjustment structure is to maintain an operating
margin that meets the 10% target over the life of the agreement; however, in no case will the operating
margin be lower than eight percent or greater than twelve percent.
This benefits the community with rate stability that remains relatively flat or increases in similar
fashion to other market costs. This benefits the Recology in that they are able to have revenue stability
to plan long term for capital investments that should assist in maintaining cost controls. This also
avoids the open ended annual rate increase requests that are currently a part of the existing franchise
agreement.
Medical Waste Program Costs
While not as significant of a cost center to the overall solid waste collection services, the Bell Report
also identified that the current medical waste program rates did not cover the associated costs. The
draft rate resolution includes a rate adjustment for medical waste collection services that roughly
matches that of the rest of the region and significantly closes the gap between revenue and expense in
this program.
Page 4 of 6
kpryrr,
CITY OF
ASHLAND
FISCAL IMPLICATIONS:
The proposed changes to the solid waste franchise agreement have many different financial
implications to a variety of different groups/customers within the community, as well as to the City
itself.
To address the modifications contained within the proposed ordinance and resolution, Recology has
suggested instituting an overall rate increase combined with the individual rate class adjustments (see
table below) at the time of ordinance and resolution approval rather than waiting for the April 2014
CPI adjustment. Recology would then defer the first year CPI adjustment in April of 2014 and resume
annual adjustments in April of 2015.
This allows Recology to adjust rates in line with the target operating margin, allow for earlier purchase
and distribution of roll carts to customers, and eliminate multiple rate increases within a five month
period.
However, if the Recycle Center remains an unallowed expense and is not part of the rate calculation,
the overall rate increase would be somewhat smaller in order to maintain the target operating margin of
ten percent with some of the increase attributed to capital costs related to the purchase and distribution
of the roll carts.
The following table provides a summary of the impacts by customer type.
ustomer a C+ustomer# Rat Chan e Annual Revenue act
Yellow Bag 206 Five pack of bags from $27.02 to $45 $11,000
Sticker Program 600 Five pack of stickers from $40.71 to $45 $7,500
Free Recycle 500 to 1,000 Every other week curbside comingled $25,000 to $50,000
recycle goes from $0 to $5 per month
Medical Waste 104 Approximate 20% increase across rate $4,000
structure
STAFF RECOMMENDATION AND REQUESTED ACTION:
Staff recommends the Council discuss and deliberate on the following:
1) Agreement with the overall rate adjustment structure and process
2) Determination of whether the costs associated with the Recycle Center remain unallowable
expenses or whether a specific extension date be granted for further deliberation of
alternative funding strategies
3) Agreement with customer class rate adjustments (yellow bag/sticker/recycle only/medical)
4) Agreement with mandate of roll carts to start automated collection improvements
5) Determination on appropriate start date for overall rate increase (at the time of resolution
approval or with new rate adjustment process resulting in April 1, 2014 effective date.
6) Determination on potential inclusion of Conservation Commission recommendations
SUGGESTED MOTION:
N/A.
Page 5 of 6
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CITY OF
ASHLAND
ATTACHMENTS:
Solid Waste Working Group staff overview memo, August 29, 2013
Draft Ordinance - Solid Waste Management & Collection
Solid Waste Franchise Administrative Operations Standards and Rules (To be adopted by Resolution)
Conservation Commission Draft Ordinance recommendation memo, July 25, 2013
Ashland Solid Waste Rate Review Draft Report, September 18, 2012 - Bell & Associates
City of Ashland Ordinance 2582 - Existing Solid Waste Franchise
City of Ashland Ordinance 2829 - Extension of Ordinance 2582
Page 6 of 6
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CITY OF
ASHLAND
Memo
DATE: August 29, 2013
TO: Mike Morris, City Councilor
Dennis Slattery, City Councilor
Carol Voisin, City Councilor
Tom Beam, Chair - Conservation Commission
FROM: Adam Hanks, Management Analyst, City Administration Office
CC: Dave Kanner, City Administrator
RE: Solid Waste Franchise Agreement - Final Draft Documents
Attached are the final draft versions of the franchise agreement ordinance and the accompanying
Operations Standards and Rules resolution. To assist in the review of the documents, below is a
summary of each major section of each document.
Solid Waste Manaeement & Collection Franchise Aereement Ordinance
Section 1- Title
Section 2 - Purpose
The Conservation Commission recommended the inclusion of solid waste reduction/recycling increase
targets and goals within the original purpose statements. City staff and Recology recommend that
specific targets not be included within the franchise agreement as it could be construed to indicate
performance measures for the franchisee (Recology) that are not attainable by Recology alone as none
of the services to be offered within this agreement are mandatory for Ashland residents or businesses.
Section 3 - Scope
This ensures that the agreement covers the existing City limits only, but will also include lands within
the urban growth boundary as annexations occur over time.
Section 4 - Definitions
A common and clear understanding of terms is a critical contract element that this agreement structure
remedies as the existing 1990 language has no definition section at all, leaving many terms, services and
procedures open to interpretation. Key definitions include:
Allowable Expenses - This sets the limits of what the franchisee can deduct from revenues in the
calculation of operating margin, which relates to the rate setting process.
Page 1 of 5
City of Ashland
ADMINISTRATION DEPT Tel: 541-552-2046
20 East Main St Fax: 541488-5311
Ashland, Oregon 97520 TTY: 800-735-2900
w .ashland.or.us
adam@ashland.orms
Cost Allocation - This defines how expenses for services that cross jurisdictional boundaries are
calculated to ensure allowable expenses relate only to services and activities within the City of Ashland.
Operating Margin - The calculation that results in the expected return on investment/profit for the
franchisee, which is gross revenues minus allowable expenses. The operating margin limits set in
section 5.10 determine establishment and modification of service rates charged by Recology to its
customers.
Unallowable Expenses - This further details the types of expenses that are explicitly not a part of the
operating margin calculation and cannot factor into the rate making process.
Section 5 - Franchise Agreement
Award and Renewal
This section establishes the right of the City to award a solid waste management and collections
franchise and provides a set of objectives to validate the use of a franchise for these types of services. It
also establishes the rights, criteria and process for the City to renew/extend a franchise award.
Terms, Fee and Audit
The initial term is set at ten years with subsequent seven year terms renewing annually. This provides
Recology with the assurance necessary to make larger equipment investments with appropriate
depreciation schedules.
The franchise fee that is paid to the City in exchange for the franchise award is paid quarterly and is
calculated at five percent (5%) of gross revenue. The City retains the right to review the financial
records of the franchisee and the audit language allows for additional audits within a year if errors or
omissions are found in the routine annual audit process.
Administrative Operations Standards and Rules
This section is designed to be a summary reference for the type of information to be detailed in a
separate document approved by resolution as this content is far more likely to change over time as
operational issues arise.
Subcontracting Services and Transfer of Franchise
The draft ordinance includes language to allow the franchisee to seek approval from the City
Administrator to provide select services via a sub contract with another provider subject to a
determination of their ability to operate within the requirements of the franchise agreement.
Also included in this section is a requirement to request a transfer of the franchise should the ownership
structure of the franchisee change significantly enough to reach the identified thresholds.
Establishment and Modification of Rates and Fees
This section details the process and methodology for setting rates and requesting rate increases. Rates
must relate to the services rendered and in aggregate shall be designed to meet a target operating margin
of ten percent (10%), with a minimum of eight percent (8%) and a maximum of twelve percent (12%).
Page 2 of 5
City of Ashland
ADMINISTRATION DEPT Tel: 541-552-2046 rV
20 East Main St Fax: 541-488-5311
Ashland, Oregon 97520 TTY: 800-735-2900
w .ashland.or.us
adarnn ashland.or.os
To achieve a level of rate stability for the community, rate increases will be adjusted each year based on
the Consumer Price Index (CPI-U), unless the estimated operating margin exceeds twelve percent
(12%). In that case, no adjustments will occur.
Should the estimated operating margin, including the annual CPI adjustment, fall below eight percent,
Recology may then request an additional rate adjustment to return the estimated operating margin to the
target ten percent (10%) level. The criteria by which this rate request is evaluated by Council is detailed
in section C of the Administrative Operations Standards and Rules resolution.
Section 6 - Reporting Requirements
A variety of financial and collections services reporting requirements have been included in the draft
franchise agreement to provide the City with adequate access to information relevant to ensure that the
franchisee is serving the needs of its customers, the City and doing so as efficiently and effectively as
possible.
Section 7 - Franchisee Responsibilities
Similarly to the reporting requirements, the agreement contains provisions for physical inspection of
operations as well as assurances that the franchisee obtains and retains the appropriate levels of
insurance and bonds to protect and indemnify the City in the operations under the franchise agreement.
Section 8 - Enforcement of Standards
The draft agreement clarifies the ability of the City, through the City Administrator, to administer and
enforce all elements of both the franchise ordinance and the administrative operations and rules
resolution through the use of section 1.08 - General Penalties section of the Ashland Municipal Code.
Enforcement tools can ultimately include the termination of the franchise and/or the right for the City to
perform services itself should the public health, safety or welfare is endangered due to the failure of the
franchisee to adequately perform under the terms of the franchise.
This section also includes the process to resolve disputes between Recology customers and Recology as
well as disputes between the City and Recology, should such issues arise.
Administrative Operations Standards and Rules
While the existing franchise ordinance did contain a minimum frequency of collection requirement and
also did define solid waste, the Operations Standards and Rules document is designed to provide a much
more detailed description of the required services to be performed as a solid waste franchisee. The
following are summaries of key components of the operations standards and rules.
A. Adoption and Revision of Standards and Rules
The rules are adopted by resolution as it is anticipated that the potential for adjustments to the service
methods,. frequency of various services, equipment used in the collection process, etc is likely but falls
short of the policy level threshold of the items found in the franchise ordinance.
B. Enforcement of Standards and Rules
This connects the Operations Standards and Rules enforcement with that of the franchise ordinance by
reference.
Page 3 of 5
City of Ashland
ADMINISTRATION DEPT Tel: 541-552-2046
20 East Main St Fax: 541488-5311
Ashland, Oregon 97520 TTY: 800-735-2900
v .ashland.or.us
adam@ashland.or.us
C. Service Rates and Fees
The franchise ordinance establishes the rates structure of the eight to twelve percent (8-12%) operating
margin with the use of the CPI-U as a tool to maintain the operating margin within that rantge. This
section details the process and limits on the use of the CPI-U.
A key component of this section is the listing of criteria to be used to evaluate a rate adjustment request
in excess of the CPI-U should the estimated operating margin fall below the eight percent minimum
operating margin.
D. Mandatory Services
This establishes the services required to offer as a solid waste franchisee and includes both subscription
service (monthly billing and scheduled pick-up) and pre-paid customer, controlled service collection
(yellow bag/sticker), as well as debris drop box services, medical waste and pre-consumer compost for
commercial customers and waste evaluation, education and outreach.
E. Optional Services
This provides Recology with a process to propose and receive approval for additional services that
contribute to the goals in the purpose statement of the franchise ordinance and/or modifications to
services that could result in operational cost reductions.
F. Collections Responsibilities
This establishes minimum frequency levels offered to residential customers for the different service
types; weekly for solid waste, every other week for green and recycle services. Commercial customers
are offered a flexible collection schedule up to daily service.
Automated collection systems were discussed in the Bell Rate Review Report as a mechanism to benefit
long term cost containment with gains in collection route efficiency. However, in discussions with
Recology staff both locally and in their regional offices, fully automated systems may not bring the
desired level of efficiency for the cost of implementation. This section acknowledges that both the City
and Recology are interested in pursuing progress towards automation should it be determined that it
could benefit the community long term.
G. Residential Collection Standards
A significant element included in this section that differs from the existing residential collection services
is the requirement that residential customers use Recology provided roll carts rather than their own trash
cans. This is a first step towards automation and is estimated to provide a level of route efficiency not
currently possible.
The primary benefit of a standardized roll cart is the removal of one step in the collection process. With
owner provided cans, the collection truck operator must unhook a roll cart from the truck, take it to the
customer can location, manually dump the contents of the can into the roll cart, roll the cart back to the
truck and hook it to the dumping arm. The use of a standardized roll cart will eliminate the manual
dumping step and will also make the use of the sticker program easier for drivers to verify.
H. Other Residential Collection Activities
Page 4 of 5
D Ashland
A
ADMININISTRATION DEPT Tel: 541-552-2046
20 East Main St Fax: 541-488-5311
Ashland, Oregon 97520 TTY: 800-735-2900
www.ashland.orms
adarnn ashland.orms
This provides for the occasional need for residents to dispose of materials not typically handled at the
curbside level. Additionally, a placeholder agreement for an annual solid waste related event is
specified for use by the City in partnership with Recology as the need is identified and agreed upon.
1. Commercial Collection Standards and J. Multi-family Collection Standards
The inclusion of Recology provided roll carts, as well as the requirement for Recology to offer waste
management site evaluations for both customer classes are the only significant modification to the
existing services levels for both commercial and multi-family collection. Recology has been offering
waste evaluations for some time, but it had not previously been formally part of the franchise agreement,
nor has any reporting requirement for those services been previously specified.
K. System and Equipment Standards
This section specifies minimum standards for the maintenance, operation and appearance of equipment
used to perform solid waste and recycling collection services and provides the City with the opportunity
to inspect with adequate notice.
L. Infectious and Hazardous Waste
This section sets standards for collection of medical and infectious waste and sets a process for the
identification and right of refusal to collection hazardous waste.
M. Customer Service Standards
This section outlines minimum levels of customer service, including billing, handling of past due
accounts, re-instatement of service, etc. This section also outlines expectations for information to be
provided to new customers, as well as coordination of informational, educational outreach efforts with
the City.
N. Customer Responsibilities
This section clarifies the requirements of the customer in the collections process, including proper
placement of the roll cart, overall roll cart weight limitation, proper separation of materials, payment
responsibilities, etc.
0. Reporting to the City
This section provides additional information to be accessible and available to the City in regular
reporting submittals as well as on an "as requested" basis. The intent is to ensure that the City maintains
a clear understanding of the operations of the franchisee and can work as a partner with the franchisee in
serving the community.
Page 5 of 5
City of Ashland
ADMINISTRATION DEPT Tel: 541-552-2046
20 East Main St Fax: 541488-5311
Ashland, Oregon 97520 TTY: 800-735-2900
www.ashland.or.us
adam@ashland.or.us
ORDINANCE NO.
AN ORDINANCE CREATING A FRANCHISE AGREEMENT FOR SOLID
WASTE MANAGEMENT & COLLECTION WITHIN THE CITY OF
ASHLAND AND REPEALING ORDINANCES 2829, 2582 RELATING TO
PREVIOUS SOLID WASTE FRANCHISE AGREEMENTS AND TERMS
WHEREAS, Oregon Revised Statutes Chapter 459 grants the City the authority to regulate solid
waste collection and mandates the development of a recycling program; and
WHEREAS, the City desires to insure efficient and comprehensive materials Solid Waste
Management and Collection Services are available to all residents, businesses and organizations
in the City
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1: Title. This ordinance shall be titled and referred to as the "Solid Waste
Management Franchise Ordinance".
SECTION 2: Purpose. It is the policy and purpose of the City of Ashland to protect the health,
safety and welfare of the citizens and physical environment of Ashland through the regulation of
solid waste management. This regulation will:
a) Insure safe, economical, efficient and comprehensive Solid Waste Management Services
as further defined in this agreement;
b) Assist the community in reaching and surpassing recycling and waste diversion rates of
the Jackson County waste shed;
c) Insure fair and equitable service rates and charges across all customer classifications to
achieve safe and efficient collection, transportation and recover of solid waste,
recyclables and compostable materials;
d) Meet or exceed all applicable Oregon Revised Statutes (ORS) 459 regulations relating to
Solid Waste Management prescribed to local jurisdictions and their authorized
franchisee; and
e) Insure consistent and responsive service and communication with citizens regarding solid
waste management operations, education and requirements including waste prevention,
product life cycle impacts, waste diversion opportunities, recycling best practices and
standards and general waste shed stewardship.
Ordinance No. _ Page 1 of 21
SECTION 3: Scope. Services defined, regulated and authorized in this ordinance are applicable
only within the city limits of the City of Ashland and all future urban growth boundary
annexations occurring during the term of this ordinance.
SECTION 4: Definitions. Except where the context clearly indicates a different meaning, or
where a term is defined below, definitions contained within ORS 459.005 at the time of adoption
or as further amended in the future, and regulations promulgated under state law are applicable to
this ordinance.
Administrative Operations Standards and Rules
All standards and rules approved by resolution of Council defining specific operating rules
and procedures that support and insure compliance with this Ordinance.
Affiliated Company
Any company which shares expenses and/or revenues with the Franchisee with respect to the
services under this Agreement and is: 1) the parent company (corporation, partnership or
limited liability company) of Franchisee; or, 2) any subsidiary of such parent company; or, 3)
any company of which thirty percent (30%) or more of the common stock or control is owned
or controlled by Franchisee; or Franchisee's share holders; Examples of such shared costs
include, but are not limited to: labor, equipment, vehicles, insurance, or administrative costs.
Allowable Expenses
Those expenses incurred by Franchisee in the performance of this Agreement that are allowed
by the City as reimbursable by the ratepayer as enumerated below. Allowable Expenses are
allowable only to the extent that such expenses are known and measurable, calculated
according to Generally Accepted Accounting Principles (GAAP) on an accrual basis, and
comply with the cost allocation methodology contained within this ordinance and are
applicable only to the Franchisee's operations within the City, do not exceed the fair market
value of comparable goods or services, and are commercially reasonable and prudently
incurred by the Franchisee solely in the course of performing its obligations under the
Franchise. Allowable expenses, shall include but not be limited to the following:
a. The costs of complying with all laws, regulations or orders applicable to the
obligations Franchisees under federal, state or local law, including this ordinance, as
well as costs for financial reporting, accounting and regulatory processes associated
with or required by this franchise or under law; as now or hereafter amended;
b. Disposal costs;
c. Labor costs, including operational and supervisory labor, payroll taxes, workers'
compensation, and benefits, as well as third party transportation costs;
d. Vehicle and equipmentexpenses, including vehicle registration fees, motor fuel, oil,
tires, rental charges and/or operating lease payments and repairs and maintenance;
e. Expenses of maintaining other capital assets, including rental charges and/or
operating lease payments and repair and maintenance, to include container
maintenance and repair costs;
f. Performance bonds and insurance in at least the amounts and coverages required by
the City;
Ordinance No. _ Page 2 of 21
g All administrative and management costs and expenses reasonably allocated for the
services required under this Agreement, including, but not limited to compensation,
management fees, and benefits for officers and employees, payroll taxes, data
processing, billing, equipment or facility rental or lease costs, supplies, finance and
accounting, administration, human resource and labor management, rate analysis, and
regulatory compliance;
h. Utilities;
i. Training, worker safety and employee development expenses;
j. Promotion and public education costs;
k. Depreciation and amortization of capital assets, including any necessary stand-by or
back-up equipment used on a regular and ongoing basis in the provision of services
under this Franchise over standardized economic useful lives of the various assets;
1. Outside professional fees an d costs, limited to two percentage points of revenue,
unless an extraordinary circumstance exists;
m. Interest expense, other than interest paid with respect to route or Franchise
acquisition, that is not in excess of market rates ordinarily charged for the various
types of financing required for purchases or leases;
n. All surcharges, taxes or fees, other than state or federal income taxes or franchise
fees, which are imposed upon the Franchisee or levied by federal, state or local
government in connection with Franchisee's provision of collection services under
this Franchise;
o. Direct write-off charges for bad debts; and
p. Franchise fees assessed by the City.
Allowable expenses as defined above shall be reasonable if they are comparable with the
expenses incurred by similarly situated solid waste and recycling collection companies on the
West Coast of the United States.
Automated Collection System
A type of collection system that utilizes standardized roll carts and mechanically assisted
collection equipment designed to minimize direct human handling of customer waste set out
for collection.
Bulky Wastes
Large items of solid waste such as appliances, furniture large auto parts, trees, branches
greater than four inches in diameter and 36 inches in length, stumps and other oversized
wastes whose large size precludes or complicates their handling by normal collection,
processing or disposal methods.
City
The existing city limits and future annexations of the City of Ashland, OR.
City Council or Council
The City Council of the City of Ashland.
Ordinance No. Page 3 of 21
Commercial
Stores; offices, including manufacturing and industrial offices; restaurants; warehouses;
schools; colleges, universities; hospitals; and other non-manufacturing entities; manufacturing
entities, but not including multifamily or residential condominium complexes.
Container
A receptacle used to store solid waste or recyclable materials that is designed for on-site
unloading into a closed-bodied collection vehicle in which the contents of the receptacle are
mixed with the contents of other similar receptacles.
Construction and Demolition Debris
Used or discarded construction materials removed from a premise during construction,
demolition or renovation of a structure.
Cost Allocation Methodology
The following allocation methodology shall be used to determine expenses attributable to
services rendered for City of Ashland solid waste management services franchise operations.
I ) Residential and Commercial labor hours
The Franchisee will perform two annual surveys to estimate the time spent in each
jurisdiction by residential and commercial route. Total annual hours will be estimated by
jurisdiction for residential and commercial routes based on the two annual surveys. The
annual total hours will be used to allocate labor and benefits, fuel, oil, maintenance,
vehicle and container leases, vehicle licenses, and route costs by jurisdiction for
residential and commercial services.
2) Debris box labor hours
The Franchisee will estimate the average time spent per load by jurisdiction. This average
will be applied to the actual annual load count by jurisdiction to calculate an annual total
for each jurisdiction. The annual total hours will be used to allocate labor and benefits,
fuel, oil, maintenance, vehicle and debris box leases, vehicle licenses, and route costs by
jurisdiction for debris box.
3) Yardage
Yardage by jurisdiction will be estimated by subscribed volumes for residential and
commercial services and by box size for debris box service. This yardage will be used to
allocate disposal costs by jurisdiction.
4) Residential and commercial weekly lifts
The Franchisee will use two surveys to estimate the number of weekly services by
r
jurisdiction. This measure will be used to allocate all other costs by jurisdiction.
5) Direct cost
Franchise fees and other costs directly related to a specific jurisdiction will be applied to
the appropriate jurisdiction.
Ordinance No. _ Page 4 of 21
Curbside/Roadside
A location within three (3) feet of public right-of-way. This does not allow the garbage or
recycling receptacle to be placed on the inside of a fence or enclosure even if the receptacle is
within three (3) feet of said road or roads. For residences on "Flag Lots", private roads or
driveways, "Curbside/Roadside" shall be the point where the private road or driveway
intersects a City Road, Public Access Road, State Road or Federal Road.
Customer
Individuals, groups, businesses, corporations or other recognized entity receiving Solid Waste
Management and Collection Services from the franchisee within the City of Ashland.
Customer Classification
List and definition of the different groupings utilized for rate making; i.e. residential,
commercial, municipal, etc.
Depot
A facility for transferring containerized solid waste, recyclable materials or yard debris from
one mode of transportation to another. The tern also refers to a place for receiving source-
separated recyclable materials.
Disabled Customer
A subscription customer in which all adult household members possess a DMV issued
handicapped parking sticker/placard.
Disposal Site
Land and facilities used for the disposal, handling or transfer of, or resource recovery from
solid wastes, including but not limited to dumps, landfills, sludge lagoons, sludge treatment
facilities, disposal sites for septic tank pumping or cesspool cleaning service, transfer stations,
resource recovery facilities, incinerators for solid waste delivered by the public or by a solid
waste collection service, composting plants and land and facilities previously used for solid
waste disposal at a land disposal site; Disposal site does not include the following: a facility
authorized by a permit issued under ORS 466.005 to 466.385 to store, treat or dispose of both
hazardous waste and solid waste; a facility subject to permit requirements of ORS 46813.050
or 46813.053; a landfill site which is used by the owner or person in control of the premises to
dispose of soil, rock, concrete or other similar non decomposable material, unless the site is
used by the public either directly or through a solid waste collection service; or a site operated
by a wrecker issued a certificate under ORS 822.110.
Drop Box
A single receptacle used to store solid waste or recyclable materials that is designed to be
removed from the generator's site on the back of a roll-off truck for unloading at a disposal
site, material recovery facility, or other storage or processing facility. The contents of the
receptacle are not mixed with the contents of other similar receptacles until delivery to a
Disposal Site.
Ordinance No. _ Page 5 of 21
Force Majeure
Acts of god, fire, landslides, lightening, storms, floods, freezing, earthquakes, epidemics,
volcanic eruptions, public riots, civil disturbances, acts of the public enemy, wars, blockades,
embargoes, or acts of civil or military authority, breakage, explosions or accident to machines
or other materials, pipelines or materials, governmental restraint, unavailability of a disposal
site and any other event which could not with reasonable diligence be controlled or prevented
by the party affected by the event.
Franchise
A contract with the City allowing the use of public right-of-way to collect and transport solid
waste.
Franchisee
A person, persons, business or corporation who has been granted a franchise to operate within
the City of Ashland pursuant to this Ordinance.
Generator
A person who last uses a material and then makes it available for disposal or recycling.
Gross Revenue
"Gross Revenue" for any period shall mean:
1) Gross accrual-based billings by the Franchisee to customers for services provided under
this Agreement;
2) The allocated gain on the sale of fixed assets, the depreciation or amortization from
which was an Allowable Expense under the terms of this Ordinance, and refunds, sales
proceeds or other reimbursements for any other expense that was an Allowable Expense
under this Ordinance, and
3) The accrual-based proceeds from the sales of recycled material collected within the
Franchise.
Hazardous Waste
Solid Waste or Waste that may, by itself or in combination with other waste, be explosive,
poisonous, caustic or toxic, or otherwise dangerous or injurious to human, plant or animal life,
as defined by ORS 466.055.
Household Hazardous Waste
Any discarded, useless or unwanted chemical, material, substance, or product that is or may
be hazardous or toxic to the public or the environment and is commonly used in or around
households. Household hazardous waste includes, but is not limited to, some cleaners,
solvents, pesticides, and automotive and paint products.
Infectious Waste
Infectious waste mean biological waste, cultures and stocks, pathological waste, and sharps,
as defined in ORS 459.386 and 459.387.
Ordinance No. Page 6 of 21
Multifamily
Any multi-dwelling building or group of buildings that (a) contain(s) five (5) or more
dwelling units on a single lot, such as apartments, condominiums, and mobile home parks
and (b) receives services on a per lot or per building basis, as opposed to a per unit basis.
Multifamily complex also includes certified or licensed residential care housing, such as
adult foster care homes, and group homes. Multifamily accounts are determined to be a
residential waste stream.
Material Recovery
Any process of obtaining from solid waste, by presegregation or otherwise, materials that
still have useful physical or chemical properties and can be reused or recycled for some
purpose.
Material Recovery Facility
A solid waste management facility that separates or stores materials for the purposes of
recycling from incoming, non-putrescible solid waste by using manual and/or mechanical
methods. It also means a facility that primarily accepts previously source separated materials.
Operating Margin
Gross revenues minus allowable expenses within a given period.
Organic Waste
Materials that can be biologically synthesized by plants or animals from simpler substances,
are no longer suited for their intended purpose, and are readily broken down by biological
processes into soil constituents. Examples include, but are not limited to, food waste, yard
debris, contaminated paper, and putrescible waste that are generally, a source of food for
bacteria.
Putrescible Waste
Solid waste containing organic material that can be rapidly decomposed by microorganisms,
and which may give rise to foul smelling, offensive products during such decomposition or
which is capable of attracting or providing food for birds and potential disease vectors such
as rodents and flies.
Receptacle
A can, cart, container, drop box, compactor or recycling bin or any other means of
containment of Solid Waste or Waste or Recyclable Materials.
Recyclable Material, Recyclable, Recyclables
Material that has or retains useful physical, chemical, or biological properties after serving its
original purpose(s) or function(s), and is separated from solid waste by the generator or at a
material recovery facility.
Recycling
Any process by which waste materials are transformed into new products in such a manner
that the original products may lose their identity.
Ordinance No. Page 7 of 21
Residence, Residential
Any dwelling unit where at least 50 percent of the use of the entire building is for home use.
Self-Haul
Collection and transportation of solid waste from a commercial, multifamily, or residential
entity by the generator, owner or occupant of the property, rather than by a third party hired
to perform this function.
Senior Discount Rate
A discounted collection rate provided to customers that meet the discounted utility rate
provision of resolution 92-22 or future related amendments.
Solid Waste or Waste
The terms "solid waste" and "waste" are interchangeable. Solid waste shall include all
putrescible and non-putrescible waste, including but not limited to, garbage; compost;
organic waste; yard debris; brush and branches; land clearing debris; sewer sludge;
residential, commercial and industrial building demolition or construction waste; discarded
residential, commercial and industrial appliances, equipment and furniture; discarded,
inoperable or abandoned vehicles or vehicle parts and vehicle tires; manure; feces; vegetable
or animal solid and semi-solid waste and dead animals; and infectious waste. Waste shall
mean useless, unwanted or discarded materials. The fact that materials, which would
otherwise come within the definition of Solid Waste, may, from time to time, have value and
thus be utilized shall not remove them from the definition. The terms Solid Waste or Waste
do not include:
1) Recyclable materials or yard debris separated from solid waste and properly prepared for
collection;
2) Environmentally hazardous wastes as defined in ORS 466.055;
3) Materials used for fertilizer or for other productive. purposes on land in agricultural
operations in the growing and harvesting of crops or the raising of fowl or animals;
4) Septic tank and cesspool pumping or chemical toilet waste;
5) Source separated, principal recyclable materials as defined in ORS 459A and the Rules
promulgated there under and under this Ordinance, which have been purchased or
exchanged for fair market value, unless the City declares a site of uncollected principal
recyclable materials to be public nuisance;
6) Applications of industrial sludges or industrial waste by-products authorized through a
Land Use Compatibility Statement or Management Plan approval and that have been
applied to agricultural lands according to accepted agronomic practices or accepted
method approved by the Land Use Compatibility Statement or Management Plan, but not
to exceed 100 dry tons per acre annually; and
7) Stabilized municipal sewage sludge applied for accepted beneficial uses on land in
agricultural, non-agricultural, or silvicultural operations. Sludge-derived products
applied for beneficial uses on land in landscaping projects.
Ordinance No. Page 8 of 21
Solid Waste Management and Collection Services
Prevention, reduction, management of the storage, collection, transportation, treatment,
utilization, processing and final disposal of solid waste; or recycling, reuse and material
recovery from solid waste; and facilities necessary or convenient to such activities.
Source Separated Materials
Recyclable materials that have been separated by type of recyclable material and removed
from the solid waste stream by the person who last used the recyclable materials.
Transfer Station
A fixed or mobile facility, other than a transportation vehicle, where solid waste is deposited
temporarily after being removed from the site of generation but before being transported to a
final disposal location.
Unallowable Expenses
Shall include the following:
1) All charitable and political contributions;
2) Fines and penalties, including without limitation judgments for violation of applicable
laws, incurred by a licensee;
3) Payments for services provided by individuals related by blood or marriage or by
affiliated companies to a licensee to the extent that such payments exceed the reasonable
cost that would be charged by an independent third party to provide the substantially
equivalent service;
4) Accruals for future unknown regulatory changes;
5) Costs associated with purchase of other companies including, but not limited to,
employee stock ownership plan payments, goodwill, amortization of goodwill and
premiums on key-person life insurance policies;
6) Principal or interest payments on the acquisition of solid waste, recyclable materials and
yard debris collection routes; the purchase of equipment and/or facilities to the extent that
the price includes goodwill or a premium in excess of fair market value at the time of
acquisition; State and federal income taxes;
7) Fees paid to a Franchisee's Board of Directors;
8) Damages, Attorney's fees and related expenses resulting from:
a. Anyjudicial proceeding in which the city and a licensee are adverse parties, unless
the Franchisee is the prevailing party and is not granted judgment for attorney fees
and related expenses;
b. Any judicial proceeding in which a Franchisee is ruled to be liable due to willful
misconduct or negligence or in violation of law or regulation.
9) Operation of community access Recycling Depot not physically located or operated in
conjunction with the Franchisee's transfer station
10) Recycling operations expenses already calculated and incorporated into Franchisee's
tipping fees
11) Any other expenses defined as "unallowable" and approved by mutual consent of the
franchisee and the council.
Ordinance No. Page 9 of 21
Utilization
The terms utilize, utilization, or utilization of Solid Waste or Waste shall mean productive
use through recycling, reuse, salvage, resource recovery, energy recovery, or land filling for
reclamation, habitation, or rehabilitation of land.
Waste Evaluation
An evaluation completed by the City or a Franchisee of a commercial entity's waste
management practices, for the purpose of providing guidance to a multi-family or
commercial customer on effective means to reduce waste, increase recycling, and purchase
recycled products.
Yard Debris
Grass clippings, leaves, tree and shrub prunings of no greater than four (4) inches in diameter
or similar yard and garden vegetation. Yard debris does not include such items as: dirt, sod,
stumps, logs, tree and shrub prunings greater than four (4) inches in diameter, rocks, plastic,
animal waste or manure, cat litter, potting soil, prepared food wastes or nonputrescible
material.
SECTION 5: Franchise Agreement.
5.1 Franchise Award
No person shall do business in the collection and transport of solid waste generated within the
City without a current, valid City franchise. A Franchise to provide solid waste management and
collection services, including recyclable materials and yard debris in the service area of the City
shall be granted only after a determination of need for the service.
The determination of need is the responsibility of the City Council, which will seek the best
balance of the following objectives:
1) To insure safe, efficient, economical, equitable and comprehensive solid waste service;
2) To avoid duplication of service that will cause inefficiency, excessive use of fuel,
increased traffic, and greater wear on streets;
3) To provide service in areas of marginal return;
4) To promote and encourage recycling and resource recovery;
5) To improve the likelihood of the Franchise holder making a reasonable profit and thereby
encourage investment in modern equipment;
6) To cooperate with other governmental bodies by recognizing their service arrangements;
and
7) To otherwise provide for the service in a manner appropriate to the public interest.
5.2 Renewal of Franchises
In granting a franchise renewal, the Council may, in addition to the above, consider the
following, including but not limited to:
1) Volumes of solid waste collection and disposal;
2) Volumes of recyclable materials and rate of participation in recycling;
3) Customer satisfaction, including but not limited to customer complaints;
Ordinance No. Page 10 of 21
4) Analysis of solid waste collection and recycling programs in other cities as compared to
those of the City, including but not limited to program costs, funding mechanisms and
overall rates of participation in recycling;
5) Franchisee performance of its obligations under the franchise, including a Franchisee's
technical and financial capabilities;
6) Franchisee ability to provide evidence of required insurance; and
7) Franchisee responsiveness to customer or City complaints.
Franchises granted by the City shall be non-exclusive, however it is understood that during the
term of franchises granted under this Ordinance, the City shall not grant any other person a
franchise for Solid Waste Management Services unless there is a showing by the applicant of the
need for such additional service in the proposed service area. As to such application(s) the
existing Franchisee shall have first right of refusal to provide such services.
In evaluating whether a need exists for additional service, the City Council may consider, among
any other criteria deemed relevant by the City Council, the following items:
1) An increase in the population of the City;
2) An extension of the boundaries of the City;
3) Intensive residential, commercial or industrial development within the boundaries of the
City;
4) Changes in solid waste technology and/or recycling collection technology that could
substantially improve collection service or reduce collection costs to residents of the City;
5) The effect that an additional franchise would have on each existing Franchisee's ability to
meet the City's service standards and maintain a fair return on its investment;
6) Changes in federal or state laws, rules or regulations that substantially affect solid waste
or recycling collection requirements.
7) The Franchisee cannot or will not perform or subcontract the proposed service.
This ordinance does not prohibit any person from self-hauling solid waste and/or recyclables. A
generator may self-haul his or her own material, and a generator's contractor may haul materials
that are generated as a direct result of the service-provider's activity. For example, landscapers,
roofers, and remodelers may self-haul materials, but may not contract with third parties other
than Franchisees for collection and transport.
5.3 Franchise Terms
A franchise to provide solid waste management and collection services shall be granted for a
period of ten (10) years, beginning September 1, 2013 with subsequent seven year terms
renewing annually, unless prior notice of request to terminate is submitted by either the City or
the Franchisee a minimum of 90 days prior to the renewal date.
5.4 Franchise Fee
1) Annual Fee. In consideration of the rights and benefits of the terms of this franchise,
Franchisee shall pay to the City each year during the life of this franchise beginning
November 1, 2013 an annual fee derived from revenue received by that franchisee from
Ordinance No. Page 11 of 21
Solid Waste Management and Collection Service boundaries of the City. The franchise
fee shall be five percent (5%) of gross revenues.
2) Quarterly Payments. The franchise fee required in 7(a) above shall be paid quarterly, and
shall be due and payable within thirty (30) days of the end of the calendar quarter.
Accompanying the payments described above, Franchisee shall file with the City
Administrator or designee, a statement showing the amount of the gross revenues
received by that company within the City for the calendar quarter immediately preceding
the calendar quarter in which such statement is filed. There will be a reconciliation of
final gross revenues on the quarterly report ending September 30`h of each year for the
prior fiscal period, which is October 1" through September 30`h.
3) Review of Records; Annual Audit. Franchisee shall make available for inspection,
copying and review by the City Administrator or designee at any time during normal
work hours all records in the Franchisees' possession that the City Administrator or
designee deems relevant to verifying the accuracy of fees paid to the City, to regulating
rates or to carrying out any responsibility that the Franchisees or the City has under this
Ordinance.
No more often than once during any twelve (12) month period, City may request an audit
of the books, records and accounts of Franchisee by a certified public accountant or such
other professional chosen by the City to verify accuracy of fees paid to the City, subject
to the approval of the audited Franchisee; provided, however, that such approval shall not
be unreasonably withheld. Franchisee agrees to have its books, records and accounts
audited and further agrees to pay for such auditing services. The report of the certified
public accountant or other professional shall be conclusive and final. In the event such
audit report discloses any difference of payment due either to the City or Franchisee
through error or otherwise, such payment shall be due and payable within thirty (30) days
of discovery or determination of the error. If payment is owed by the City to Franchisee,
the City shall reimburse the Franchisee for payment for the portion of the services
attributable to the audit of the Franchisee receiving such payment from the City.
If payment is owed by Franchisee to the City, and the difference of payment due is more
than the greater of five hundred dollars ($500) or two and one-half percent (2%z of the
Franchisee franchise fee, or if the Franchisee is found to have violated any other term or
condition of the franchise then, notwithstanding any other provision of this Section or the
franchise, the City may request an additional audit during the next twelve (12) month
period with all expenses of such additional audit paid by such Franchisee.
4) Late Payments; Interest. Should Franchisee fail or neglect, for thirty (30) days after any
quarterly payment shall become due and payable, to make the quarterly payment, the City
shall provide written notice of failure of payment to Franchisee. Upon notification of
failure to pay, Franchisee will have thirty (30) days to remit payment to the City. If
Franchisee fails to pay within said thirty (30) day period, the City may charge interest
retroactive to the due date, at a rate of nine percent (9%) per annum, and may at its option
either continue the franchise in force and proceed by suit or action to collect the payment,
Ordinance No. Page 12 of 21
or declare a forfeiture of the franchise because of the failure to make payment, but
without waiving its right to collect earned franchise payments and interest.
5.5 Franchise Administrative Operations Standards and Rules
The Solid waste management and collections franchisee will operate within operations standards
set by resolution of Council. Standards and rules will be developed across all customer
classifications including, but not limited to, the following:
Service Rates and Fees
a. Rate and fee schedule for all collection services, programs by customer classification
Collections
a. Regular, holiday and hazardous weather schedules
b. Procedures for missed, bulky waste, vacation hold, etc collections
c. Collection receptacle standards and requirements
d. Receptacle location requirements for pick-up
e. Private property access rights and limitations
f. Responsibilities of the customer
g. Vehicle minimum equipment, maintenance standards, identification/signage and
standards
Customer Service & Communications
a. Billing standards and frequency
b. Billing/collection procedures for past due/non-pay accounts
c. Descriptions, objectives and targets for all services provided across all customer
classifications
d. Solid waste related programs, education and event promotion
e. Complaint/dispute resolution procedures
f Community Communications and outreach plan coordination with City outlining roles
and responsibilities of City and Franchisee.
Reporting (in addition to Ordinance required reporting)
a. Efficiency analysis reports for routes, billing/collections, etc
b. Revenue and subscription volume reports by solid waste category (trash, recycle, yard
waste) for various customer classifications (residential, and commercial, Debris box
volumes will be measured by dump and return and/or pull activities.
c. Customer counts and trends over time for residential and commercial customer
classifications Debris box load counts will be reported in lieu of debris box customer
counts.
5.6 Subcontracting Services
A Franchisee may contract with another person to provide specific components of solid waste
management and collection services within the Franchisee's service area with the written
approval of the City Administrator or designee, provided that the subcontract does not amount to
a transfer of the collection franchise and the subcontracting party agrees to:
1) Abide by the conditions of this ordinance and associated resolutions; and
Ordinance No. Page 13 of 21
2) In written application to the City, show how they will meet the criteria applying to the
current franchise
5.7 Transfer of Franchise
A proposed assignment or transfer of a Franchise must be requested by the Franchisee if the
following occur, but shall not be limited to:
1) A sale, exchange or other transfer of 50% or more of Franchisee's assets dedicated to
service in the City;
2) A sale, exchange, or other transfer of fifty percent (50%) or more of the outstanding
common stock of a Franchisee;
3) Any reorganization, consolidation, merger, recapitalization, voting trust, pooling
agreement, escrow arrangement, liquidation or other transaction to which Franchisee or
any of its shareholders is a party which results in a change of ownership or control of
fifty (50%) or more of the value or voting rights in the stock of the Franchisee; and
4) Any combination of the foregoing that has the effect of a transfer or change of ownership
and control.
The Franchisee shall provide no less than 90 days' advance written notice to the City of any
proposed transfer or assignment. Except as specifically authorized by the City, the Franchisee
shall not assign any of its rights or delegate or otherwise transfer any of its obligations to any
other person without the prior consent of the City Council. Any such assignment without the
consent of City Council shall be void and any such attempted assignment shall constitute default
and grounds for termination of the Franchise.
If a Franchisee requests the City's consent to transfer the Franchise, the City shall act on such
request within sixty (60) days of the receipt of the Franchisee's written request together with all
information, as set forth below, required for the City's action on the request. The City shall not
unreasonably refuse to consent to an assignment of the Franchise to a proposed assignee that has
sufficient knowledge, experience, and financial resources so as to be able to meet, to the
satisfaction of the City Council, in its sole discretion, all obligations of the Franchisee hereunder.
An application to the City to consider a sale or other transfer of a Franchise shall include the
following:
1) A nonrefundable application fee of two thousand dollars ($2,000) payable at the time of
application to the City in advance to defray the City's anticipated expenses and costs
resulting from the Franchisee's request;
2) Financial statements audited or reviewed by a Certified Public Accountant of the
Proposed Assignee's operations for the three immediately preceding operating years
together with any additional evidence of financial ability to perform its Franchise
obligations; and
3) A showing that the proposed Assignee meets all City criteria for the grant of a Franchise
as enumerated in this Ordinance.
Ordinance No. _ Page 14 of 21
5.8 Establishment and Modification of Service Rates and Fees
The City Council may review and set rates on an annual basis by Council resolution that
considers the following goals:
1) Rates shall be established to the greatest extent practicable on a cost of service basis
based on the ordinance-established cost allocation methodology.
2) Rates shall be adjusted annually by Council resolution equal to the percentage change in
the January to January Consumer Price Index for All Urban Consumers (CPI-U) but not
to exceed the twelve percent operating margin cap. The City Administrator or designee
shall certify the CPI-U rate in writing to Franchisee by March 1 of each year to initiate
the rate resolution.
3) Rates shall be adequate to provide an Operating Margin equal to ten percent (10%) of
Franchise-wide Gross Revenues; however, the City shall not be required to change rates
if the expected Operating Margin in the next future year falls between eight and twelve
percent of Gross Revenues. The ten percent target return on Gross Revenues is
considered sufficient to reflect the level of business risk assumed by the Franchisee, to
allow investment in equipment, and to ensure quality collection service.
Accordingly, the City shall have the authority to commission audits, reviews, or analysis of
Franchisee Annual Reports to validate submissions. The expected Operating Margin in a future
year would incorporate expected inflation factors, and the effect of known or expected increases
or decreases in expenses or revenues.
The rates charged by Franchisees shall conform to the most current Council resolution. Prior to
implementation, the Council must approve any interim rate for services not included in the
current resolution.
If the Franchisee notifies the City in writing that they believe a material change outside the
Franchisees' control has occurred, and the change will have an adverse effect on operating
margins, such that the next future year operating margins will be less than eight percent, a
material change will be deemed to have occurred. At that time, the City may undertake any type
of review it finds necessary to validate the existence of the material change and estimate its
effect on the operating margin. If the results of the review are such that no rate adjustment is
warranted, persons requesting the review shall reimburse the City for reasonable costs incurred
during the investigation at the time the next payment of franchise fees is due.
If the City believes that a material change has occurred that will result in next future year
operating margins falling under eight percent or over twelve percent, the City may undertake an
abbreviated rate review at its own expense.
SECTION 6: Franchise Reporting Requirements.
6.1 Informational Reports
Each Franchisee shall provide the City Administrator or designee by the last day of each quarter
for the previous quarter:
Ordinance No. Page 15 of 21
.1) A quarterly report listing the quantities of solid waste, yard waste and recyclable
materials by customer classification collected within the City during the previous
calendar quarter, the locations to which these materials were delivered, the number of
customer accounts, and other information requested by the City Administrator or
designee and mutually agreed upon with Franchisee.
2) A quarterly report listing the names and addresses of multi-family and commercial
customers that received waste evaluations during the reported quarter.
3) A summary of communication, marketing and educational outreach conducted by
Franchisee during the reported quarter.
6.2 Quarterly Franchise Fee Reports
Franchisee shall complete and remit to the City a Quarterly Franchise Fee report not later than
the last day of the month immediately following the end of the quarter.
At the time of payment of the quarterly Franchise Fees, the Franchisee shall file with the City
Administrator or designee, a verified statement of quarterly gross revenues for the period
covered by the tendered fee. Such statements shall be public records. Franchisee shall maintain
books and records disclosing the gross receipts derived from business conducted within the City,
which shall be open at reasonable times for audit by the City Administrator or designee.
Misrepresentation of gross revenue shall be deemed material and a breach of the Franchise
contract and shall be cause to initiate the process to terminate the franchise.
6.3 Annual Franchise Reports
Franchisees shall report revenues and expenses (allowable and unallowable), in an income
statement format, and provide a variety of information about customer counts, service levels,
disposal volumes, and recycling activities for all customer classifications and for all programs
identified in the Administrative Operations Standards and Rules resolution adopted by Council.
Franchisees shall report totals for all operations necessary to adequately verify compliance with
the cost allocation methodology as defined in this for expenses that share significant operational,
management, and administrative expenses with the City of Ashland Franchise. Resources
allocated from regional or corporate offices or affiliates shall be distributed to appropriate
expense line items, and shall also be disclosed in a schedule describing total allocations and their
distribution to individual expense line items. All allocations from Affiliated Companies must be
described and must be equal to or less than the fair market value of similar goods and services
purchased from a non-affiliated company.
The report will also include a synopsis of the operating year, a description of the measures each
franchisee has taken in the preceding year to make its operation more efficient, a listing of the
efficiency measures which each Franchisee proposes to take in the next year, a composite table
showing the type and number of customer service complaints and a description of the measures
that the Franchisee has taken or is planning to take to correct the cause of commonly reported
complaints, and such other information as requested by the City Administrator or designee. The
report shall also describe and quantify communication, outreach and educational activities as
described in the Administrative Operations Standards and Rules resolution.
Ordinance No. _ Page 16 of 21
Franchisees may identify specific information submitted to the City in the Annual Report as
confidential. The City shall treat any information marked "Confidential" as such, and shall not
subject the confidential information to public disclosure except as required by law. If the City
receives a request for disclosure of confidential information, the City Administrator or designee
shall notify the Franchisee within a reasonable time after receiving the request so as to allow the
Franchisee a reasonable opportunity to defend against the requested disclosure through
appropriate legal process.
SECTION 7: Franchise Responsibilities and Requirements.
7.1 Access for Inspections and Delivery of Notices
Franchisees shall make all company premises, facilities and records related to their solid waste,
recyclable materials and yard debris collection services (including, but not limited to: offices,
storage areas, financial records, non-financial records, records pertaining to the origin of any
solid waste collected by the Franchisee, receipts for sale or delivery of collected recyclable
materials, customer lists, and all records related to vehicle maintenance and safety which are
required under ODOT motor carrier requirements and regulations and ORS 767) available for
inspection by the City Administrator or designee within 24 hours of notice by registered mail.
Such inspections are only for purposes of enforcing this ordinance, and are restricted to normal
business hours. During normal business hours, the Franchisee shall make all company premises
and facility accessible to City employees for delivery of any written notices.
Collection vehicles must be accessible for inspection during the normal operating hours for
collection, in addition to normal business hours. Where receptacles are stored in the public right-
of-way or when the City is inspecting a situation where the Franchisee is allegedly commingling
Recyclable Materials or Yard Debris with Solid Waste, the need for 24-hour notice does not
apply to inspection of receptacles or vehicles.
7.2 Indemnification, Bond, and Insurance
A Franchisee shall pay, save harmless and indemnify the City from any loss, damage, penalty or
claim against the City on account of or in connection with any activity of the Franchisee in the
operation of the Franchisee's solid waste collection business including activity by any approved
subcontractor providing solid waste management collections and services. If such suit shall be
filed against the City either independently or jointly with the Franchisee or its subcontractor to
recover for any claim or damages, the Franchisee upon notice to it by the City shall defend the
City against the action, and in the event of a final judgment being obtained against the City,
either independently or jointly with the Franchisee or its subcontractor, the Franchisee will pay
said judgment and all costs, including any related attorney fees and costs and hold the City
harmless there from.
Franchisee shall furnish a performance bond, in a form approved by the City Attorney, by an
acceptable surety company in the amount of twenty-five thousand dollars ($25,000.00), but may,
in lieu of a bond, furnish an irrevocable letter of credit or assign a savings account or deposit in
any federally insured financial institution in the amount of twenty-five thousand dollars
($25,000.00) on a form approved by the City Attorney. The Security shall guarantee faithful
performance of all the obligations contained herein with the premium for such bond or cost of
Ordinance No. Page 17 of 21
such assignment to be paid by the Franchisee furnishing the bond, letter of credit or making the
assignment.
A Franchisee shall maintain commercial general liability insurance on an occurrence basis in
such forms and with such companies as shall be approved by the City Attorney, which will cover
the Franchisee's business operation, including each vehicle operated by it. The insurance
coverage shall include not less than $100,000.00 for one person, nor less than $300,000.00 for
bodily injury due to each occurrence, and not less than $100,000.00 for damage to property due
to each occurrence and coverage of at least $1,000,000 in the aggregate per occurrence. All such
insurance coverage shall provide a 30-day notice to the City Administrator or designee in the
event of material alteration or cancellation of any coverage afforded in the policies prior to the
date the material alteration or cancellation shall become effective. Copies of all policies required
hereunder shall be furnished to and filed with the City Administrator or designee prior to the
commencement of operations or the expiration of prior policies, as the case may be. The
Franchisee shall furnish proof annually to the City Administrator or designee that the insurance
remains in effect.
The provisions of this section, any bonds accepted by the City pursuant thereto, and any damage
recovered by the City hereunder shall not be construed to excuse unfaithful performance by the
Franchisee or limit the liability of the Franchisee under this ordinance or the Franchisee for
damages, either to the full amount of the bond, or otherwise.
SECTION 8: Enforcement, Suspension, or Termination of Franchise.
8.1 Responsibility of City
Franchisees are subject to the exercise of the police power of the City and to such regulations as
the City may provide by resolution, ordinance, rule or regulation.
8.2 Enforcement of Standards
The City Administrator or designee shall administer and enforce this ordinance and pursue
remedies for non-compliance as laid out within this ordinance. The City Administrator or
designee shall also administer and enforce Administrative Operations Standards and Rules as
adopted by Council. These standards and rules shall be enforceable with penalties allowed in
section 1.08 of the Ashland Municipal Code. Upon recommendation by the City Administrator
or designee, the Council may declare a Franchisee who fails to abide by the rules to be in default.
8.3 Initiation of Enforcement Actions
In addition to enforcement under State law, the City may prosecute any infraction as defined in
this Ordinance or the Rules issued hereunder, based on any information coming to the City, in
Ashland Municipal Court. The burden of proof is on the City to prove an infraction by a
preponderance of the evidence..
8.4 Penalties for Infractions
Each Franchise provision, including rules adopted hereunder, is subject to penalties as described
in section 1.08 of the Ashland Municipal Code for each day from the initial citation of the
offense that the offense continues to violate the terms of this ordinance or associated resolutions.
Ordinance No. _ Page 18 of 21
8.5 Termination of Franchise for Default
In addition to default for accrued penalties, upon recommendation by the City Administrator or
designee, the City Council may terminate a Franchise for the Franchise holder's default in
performing any material term or condition of the Franchise. An event of default also shall
include, but not be limited to, entry of a judgment against the Franchise holder for material
misrepresentation or deceit committed against the City or a customer or entry of a judgment of
conviction (including conviction on a plea of no contest) against the Franchise holder or any
principal of same for a crime involving dishonesty.
Notice to a Franchisee of default shall be delivered to the Franchisee by certified mail requiring
the Franchisee to show cause in a public hearing before the City Council at a place and time to
be stated in the notice, but no earlier than 14 days from the date the notice is mailed, why the
Franchise should not be terminated.
At the hearing the Franchisee shall demonstrate the measures it has taken or commenced to cure
the default.
8.6 Service Interruption
Except for the right to refuse service for nonpayment as set forth in this ordinance, Franchisees
shall not interrupt service unless:
1) Access, roads, streets and highways necessary for collection operations are unusable or
unsafe and there are no alternative routes. Franchisees shall resume service within 24
hours after access is restored.
2) A Force Majeure event occurs.
Upon the occurrence of a Force Majeure event that prevents or impairs a Franchisee's ability to
perform any of its Franchise obligations, the Franchisee shall:
1) Provide immediate notice, either verbal or written to the City Administrator or designee
of the nature of the event and extent and anticipated duration of Franchisee's inability to
perform any obligation under this Agreement. If verbal notice is given, then written
notice must be delivered to the City within 24 hours of verbal notice;
2) Commence immediately to develop, in communication and cooperation with the City, an
interim plan for the restoration of full performance; and
3) Take all such other reasonable actions requested by the City to assist the City in
protecting the public health and safety and to restore service as soon as practicable.
Labor unrest, including, but not limited to, strike, work stoppage or slowdown, sick-out,
picketing, or other concerted job action conducted by Franchisee employees or directed at the
Franchisee is not an event of Force Majeure, and the Franchisee shall be obligated to continue to
provide service notwithstanding the occurrence of any or all of events.
8.7 City's Right to Perform Service
In the event that a Franchisee, for any reason whatsoever, fails, refuses or is unable to collect or
transport any or all solid waste for a period of more than forty eight (48) hours, and if, as a result
Ordinance No. _ Page 19 of 21
thereof, solid waste or recyclable materials should accumulate in the City to such an extent that
the City finds that such accumulation endangers the public health, safety, or welfare, then the
City shall have the right, but not the obligation, upon twenty-four (24) hour prior written notice
to the Franchisee, to perform or cause to be performed collection services with its own or other
personnel at the Franchisee's expense. This right shall be in addition to and not in lieu of any
other remedy available to the City. If necessary, the City may take temporary possession of, and
a Franchisee shall peacefully surrender, any or all the Franchisee's land, equipment, and other
property used or useful in the collection of Solid Waste or Recyclable Materials until such time
as the emergency is resolved.
8.8 Dispute Resolution with Customers
Upon receipt of any notice of dispute from a customer about any bill, charge, or service, the
Franchisee shall thoroughly investigate the matter and promptly report the results of its
investigation to the customer. A franchisee shall not refuse service to any customer during a time
of dispute.
If the Franchisee is not able to resolve a dispute with the customer, the customer may contact the
City Administrator or designee who will act as an informal mediator in an attempt to resolve the
matter. Should the dispute remain unresolved, the Franchisee or customer may then pursue the
matter in any Court with jurisdiction.
8.9 Dispute Resolution with City
During all disputes arising under this Franchise, the City and Franchisee shall continue
performance of their respective obligations under this Franchise unless and until the Franchisee
is terminated for default, in which case the Franchisee's obligation to pay a franchise fee based
on cash receipts generated from services provided under the Franchise during said dispute shall
survive such termination.
In addition to and without waiving any rights and remedies under civil or common law, in the
event of a dispute under this Franchise, the parties shall mutually agree to arbitration. Within
fifteen (15) days after agreement to Arbitration has been reached, each party shall submit the
name of its own arbitrator, selected from the American Arbitration Association, and the two
arbitrators shall select a third arbitrator selected from such panel within 15 days, or in case of a
disagreement concerning the appointment of the third arbitrator, the third arbitrator shall be
appointed from such panel by the presiding judge for the Circuit Court of the State of Oregon
for Jackson County. During such time that the arbitrators are being selected or appointed, the
parties shall continue to negotiate in good faith to resolve their dispute in a cooperative manner.
The decision of the arbitrators in the matter shall be final and binding on the parties, and any
judgment upon the award rendered pursuant to such arbitration may be entered in any court
having jurisdiction thereof.
SECTION 9. Severability. The sections, subsections, paragraphs and clauses of this ordinance
are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the
validity of the remaining sections, subsections, paragraphs and clauses.
Ordinance No. Page 20 of 21
SECTION 10. Codification. Provisions of this Ordinance shall be incorporated in the City Code
and the word "ordinance" may be changed to "code", "article", "section", "chapter" or another
word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however
that any Whereas clauses and boilerplate provisions (i.e. Sections 1-3) need not be codified and
the City Recorder is authorized to correct any cross-references and any typographical errors.
The foregoing ordinance was first read by title only in accordance with Article X,
Section 2(C) of the City Charter on the day of 2013,
and duly PASSED and ADOPTED this day of 2013.
Barbara M. Christensen, City Recorder
SIGNED and APPROVED this day of , 2013.
John Stromberg, Mayor
Reviewed as to form:
David H. Lohman, City Attorney
Ordinance No. _ Page 21 of 21
C I T Y OF
ASHLAND
City of Ashland
Solid Waste Franchise
Administrative Operations Standards and Rules
A. ADOPTION AND REVISION OF STANDARDS AND RULES
The following standards and rules are hereby established by resolution of the City
Council to set and maintain service levels for the efficient operation of a solid
waste management service and collection franchise within the City of Ashland.
Revisions to these standards and rules shall be approved by resolution of the
Council.
B. ENFORCEMENT OF STANDARDS AND RULES
Upon discovery of violation or lack of adherence to these Standards and Rules;
the City Administrator or designee shall inform Franchisee in writing of the
nature of the violation and provide reasonable time for response from Franchisee.
Should both parties fail to mutually resolve the matter, the City Administrator
may pursue enforcement of identified violation as a general penalty of section 8.2
of Ordinance No 2013-
C. SERVICE RATES AND FEES
1. Subject to the provisions of Section 5.10 of Ordinance No. 2013- rates in
place upon the effective date of Ordinance No. 2013-_, as shown in exhibit A,
shall remain in effect until April 1, 2014. On April 1, 2014, and on April 1 of
each year thereafter, rates for all services shall increase by a percentage equal to
the most recent CPI-U, January-to-January, as determined by the U.S. Bureau of
Labor Statistics, except that in no case shall rates automatically increase by more
than 5%. Should CPI-U increase by more than 5%, the franchisee and City shall
confer in good faith to determine whether the franchisee is entitled to receive an
increase larger than 5%. Should CPI-U be 0% or less than 0%, the franchisee
shall not be entitled to any rate increase. For purposes of calculating rate
increases, CPI-U percentages shall be computed to the first decimal place.
2. Subject to the provisions of Section 5.10 (5.8) of Ordinance No. 2013- ,
Franchisee may request an adjustment of rates in excess of CPI-U. Such request
shall be delivered to the City Administrator no earlier than February 15 and no
later than May 15 of any calendar year. In determining whether to grant such rate
adjustment, the Council may consider, but is not limited to, the following factors:
a. Rates charged for collection service in other cities in Oregon;
b. The most recent January-to-January Consumer Price Index (CPI-U);
c. Costs and revenues associated with providing the opportunity to recycle and
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ASHLAND
the ability of a rate structure to encourage recycling;
d. A minimum rate sufficient to provide a reasonable rate of return, ;
e. The anticipated change in the cost of providing the service;
f The need for equipment replacement and the need for additional equipment
to meet service needs and to be in compliance with federal, state and local
law;
g. Increase in population or increase of intensive development within the
service area.
3. Rates charged shall be those set as provided herein. Nonscheduled services may
be provided at the reasonable cost of providing the service.
4. Franchisee shall bill and collect on a current billing basis. When Franchisee
has experienced collection problems on a particular account, other billing
methods may be required. Such billing procedures will be subject to approval by
the City and will be reasonable business practice.
5. Franchisee may charge a starting charge to any customer who has been
previously terminated for failure to pay for service.
6. Rates shall be uniform or uniform within zones or classes of service.
7. Nothing in the above section shall prohibit City from requiring qualified senior
citizen discount rates.
8. Franchisee may require the owner of rental or leased premises to accept
responsibility for the payment for service to such facilities as a condition for
providing such service.
D. MANDATORY SERVICES
Franchisees shall offer the following solid waste management and collection
services, subject to the limitation under "Refusal of Service." A Franchisee that
does not comply has 10 days from a date of infraction to accommodate the
customer request with an equivalent level of service at or below the published
rates for the requested service.
1. Residential Curbside Collection
Solid Waste, monthly subscription
Solid Waste, customer controlled pickup
Yard Debris
Co-mingled Recycling
Glass Recycling
2. Commercial Collection
Solid Waste
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ASHLAND
Co-mingled Recycling
Pre-consumer compostable materials
Yard Debris
Medical Waste
3. Solid Waste, Recycling and Yard Debris Drop-off Site
4. Debris Drop Box Service
5. Commercial Waste Evaluation/Education
E. OPTIONAL SERVICES
Franchisee is permitted to offer other additional services to the public that
promote and increase waste prevention, recycling and/or reduce operating
expenses and contribute to the financial success of the franchise. The additional
services and their associated rates and fees must be reviewed and approved by the
City Council if the associated service expenses meet the definition of allowable
expenses in Ordinance No 2013-
F. GENERAL COLLECTION RESPONSIBILITIES
1. Solid Waste Subscription
Franchisee shall offer a solid waste collection service for each customer class with
a minimum frequency of one collection per week. Residential subscribers to
curbside recycling and green debris services will be serviced a minimum of once
every-other-week.
2. Automated Collection System
Franchisee is not mandated to implement an automated collection system for any
collection service offered; however, should Franchisee determine that an
automated system, either in specific areas or by customer classification, increase
the efficiency and cost effectiveness of the collection services program,
Franchisee may submit proposals to the City Administrator or designee for review
and potential inclusion as an allowed expense.
3. Collection Schedules
a. Collection Days
Residential service shall occur Monday through Friday, except during holiday
weeks, and times of hazardous weather conditions. All collection services shall
be offered on the same day(s) of the week for a given customer. Franchisee shall
not provide service in residential or multifamily areas prior to 7:00 am or after
6:00 pm.
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ASHLAND
Except as otherwise limited by the terms of any City land use or development
permit, there shall be no limit on the hours of collection activity for any solid
waste, recycling and yard debris materials in predominately commercial and
industrial areas. Franchisee may offer and furnish Saturday and/or Sunday
collection service to commercial, multi-family and drop box customers. If
weekend service is not made available, the Franchisee must provide sufficient
receptacles to accommodate commercial customer needs throughout weekends.
b. Change of Schedule for Solid Waste/Recycling/Yard Debris Day Franchisee
may periodically change a customer's designated collection day. No later than
fourteen (14) days prior to the change, Franchisee shall give written notice to a
customer indicating the intent to change the Customer's designated collection day
and inform the customer of the new collection day. Notice must also be given to
all service addresses if different than billing addresses. Each multifamily unit
must be notified of the change in collection day, if each unit receives
individualized can/cart service.
c. Collection on Holidays
No collection is required on July 4, Thanksgiving Day, December 25`h or January
I" of each year. During weeks in which those dates fall on a Monday through
Friday, pick-up shall occur on the established pick-up day, unless that day is July
4`h, .Thanksgiving Day, December 25`h or January 1 st, in which case pick-up will
occur on the following day. Each regular pick-up day for the remainder of those
weeks shall thereafter shift back one day with regular Friday service allowed to
occur on Saturday.
d. Hazardous Weather Conditions
Collection Schedules may be adjusted due to hazardous weather conditions.
Hazardous weather conditions generally exist on any day in which the Ashland
School District cancels classes due to weather conditions, or on portions of routes
that are located on steep hills where a driving hazard may exist even though local
public schools are open. When weather conditions make driving or collection
hazardous, Franchisee may postpone collection, as provided below.
The Franchisee shall notify the City Administrator or designee by phone or email
no later than noon on the day hazardous weather conditions day exist, if collection
schedules are expected to change.
This information supplied shall include geographic areas affected and the
anticipated make-up day or schedule. If the affected geographic area(s) or make-
up schedule changes, then the Franchisee shall update the information furnished
to the City as well on their phone and website systems.
In the case of solid waste collection, the Franchisee shall make a reasonable effort
to pick up prior to the next regular collection day. Yard debris and recyclable
materials collection may be postponed until the next regular collection day. If
collection is delayed more than two days, collection will be delayed to the next
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ASHLAND
`regular collection day, with an extra container being accepted by the Franchisee.
At the discretion of the Franchisee, a go-back charge may be assessed per the
approved rate schedule.
4. Missed Collections
a. Missed Collection for Solid Waste Customers.
The Franchisee shall respond promptly to reports of missed collections.
Franchisees shall collect missed materials within 24 hours (excluding weekends,
Christmas Day, and New Year's Day) of receipt of a complaint from the City or
the customer. The 24-hour deadline does not apply where the missed collection
occurred due to late or improper setout by the customer. Each improper setout by
a customer must be documented by the Franchisee and communicated to the
customer.
If a customer did not set out or improperly placed the container, the Franchisee
shall offer the customer the following options:
(1) Immediate collection of the materials for the City approved Go-back
Rate.
(2) Collection of the material at no extra charge the following week on the
designated collection day.
b. Hazardous Weather Missed Collections.
Collections that are missed due to hazardous weather conditions, where
postponements have been reported to the City as required in this ordinance, are
not considered "missed collections."
5. Point of Collection
a. Point of Collection: Single Family Dwelling
For single-family dwellings, the Franchisee may require that the collection of
solid waste, recyclables and yard debris be placed at the curb or roadside in such a
fashion so as to enhance efficiency of the collection system and may assess an
extra fee, as established in the approved rate structure, if a customer fails to
present the roll cart at a location reasonably serviceable by the collection truck.
Disabled customers shall not be charged an extra fee and the franchisee must
arrange for a mutually convenient system for refuse, yard debris and recycling
collection.
b. Point of Collection: Disabled Customers
Disabled customers will be provided non-Curbside collection of all materials.
The customer and the Franchisee must mutually agree upon a setout location. In
most cases, the preferred location will be visible from the street. If not, the
customer must provide the Franchisee with a signal that is visible from the street
that there are materials to be collected.
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ASHLAND
c. Collection on a private street
For collection to be made at Curbside on a private street or flag drive serving
multiple residences, the street must meet the following standards: access may not
be limited by a gate; it must be named and posted with a street sign, it must be
paved to a width of at least 12 feet, exclusive of any areas where parking is
permitted, and if dead-end, the turnaround must have a 60 foot diameter or a
"hammerhead" or other feature which provides adequate turnaround space for
standard collection vehicles. There must be at least 14 feet of vertical clearance.
On such private streets, customers entitled to Curbside service must have their
address on the private street. Franchisee may require a damage waiver from
customers being serviced on a private street, if in the opinion of the Franchisee
there is a reasonable probability that property damage could occur through no
fault of the Franchisee engaged in the normal course of providing service. If
these criteria are not met, customers must bring their materials to the intersection
of the private street and the closest public street. Containers must be marked with
the appropriate customer address.
d. Collection from Public Alleys
Collection from public alleys is encouraged, but is at the discretion of the
Franchisee.
e. Collection from In-Ground Cans
Collection from in-ground cans is prohibited.
f. Location of Empty Cans/Carts/Containers/Bins
The Franchisee shall return all cans, carts, and bins to the location where the
customer places them without leaving collection remnants or disturbance to
existing site conditions.
6. Ownership of Collected Materials.
All materials placed or deposited in a receptacle provided by the Franchisee or
left in place by the customer for collection by the Franchisee are the property of
the Franchisee. It shall be unlawful for any person other than Franchisee to
remove any material from such receptacles, though this prohibition does not apply
to bona fide law enforcement activity. Any person removing such materials in
violation of this section shall be subject to the penalties set out in AMC 1.08.
Ownership shall not transfer to the Franchisee until the Franchisee takes physical
possession of the collected materials.
7. Improperly Placed, Improperly Prepared or Overweight Materials.
The Franchisee is not required to collect materials that are not properly placed,
prepared or are overweight, as defined in the Customer Responsibility Section.
The Franchisee is required to provide written notice to the customer of the reason
for non-collection. The date, service address and Franchisee contact information
shall be provided on the notice. The Franchisee shall retain a copy of the notice
and any needed support documentation.
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ASHLAND
If a customer failed to set out or improperly prepared or placed the container, the
Franchisee shall offer the following options:
(1) Immediate collection of the materials at a City-approved rate.
(2) Collection of the material as one free extra the following week on the
designated collection day.
8. Clean Up on Route
The Franchisee shall make a reasonable effort to pick up all material blown or
littered during the course of collection subsequent to being set out by the
customer and prior to pickup, unless the problem is a recurring one. If material is
blown or littered prior to pick-up at a particular customer's address on a recurring
basis, the Franchisee may leave the blown or littered material at the Point of
Collection with a notice describing the problem. The date, and address shall be
specified on the notice. In the case of a commercial customer, the Franchisee may
charge a clean-up or extra yardage charge, and collect the material if a notice had
been given to that customer within the previous six months
G. RESIDENTIAL COLLECTION STANDARDS
The following Residential Collection Standards are specific to residential
collection, and are in addition to the general collection standards outlined in the
previous section.
1. Residential Containers
Franchisee shall provide roll carts to all residential regular service customers. The
carts should be designed for safe handling and shall be non-absorbent, watertight,
vector-resistant, durable, easy to clean, and provided with lids or covers that can
be readily removed or opened. Roll carts shall be clearly identified by displaying
the Franchisee identification prominently and conspicuously on the container.
Roll carts must be clean when delivered to the customer.
2. Roll Cart Deposit
Franchisee may not charge a deposit for roll carts for any level of service, except
as provided in Special Billing for Credit Risks
3. Replacement of Lost/Stolen Roll Cart
Franchisees may charge customers for lost, stolen, or damaged carts at 100% of
the bulk purchase price of a new roll cart most recently paid by the Franchisee.
The Franchisee is responsible for replacement of carts damaged in the course of
normal wear and tear.
4. Damage to Customer Cans
Franchisees are not responsible for normal wear and tear on reusable cans and lids
provided by customers. Damage caused by Franchisee negligence to cans and lids
shall be reimbursed to the customer and a roll cart issued. The age and previous
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ASHLAND
condition of the customer's equipment shall be considered. If a customer has
already been provided a roll cart by the Franchisee, personal customer cans may
only be used when a customer needs to set out materials as an "extra" service.
5. Residential Recycling Collection Standards
The following Residential Recycling Collection Standards are specific to
residential collection, and are in addition to the general collection standards
outlined in a previous section.
a. Co-mingled Recycling Materials
Franchisees shall provide year-round co-mingled recycling collection
service. Service shall be provided on the same collection day as solid
waste collection and yard debris collection, but may not have the same
frequency as a customer's subscription to solid waste collection service.
b. Source-Separated Materials
The Franchisee shall also collect the following source separated recyclable
materials set out for collection, so long as the materials are properly
prepared, separated from solid waste, co-mingled recycling and yard
debris, and placed at the appropriate point of collection:
1) Approved glass materials
2) Used motor oil (contained as approved by Franchisee)
c. Opportunity to Recycle
The Franchisee shall create and maintain a communications, education and
outreach plan consistent with the Customer Services Standards section of
this document ensuring public awareness of the opportunity to recycle
including recycling information, clear instructions on preparation of
recyclables for curbside collection, how the materials are being recycled
and a telephone number/website for information regarding recycling
collection service.
d. Residential Recycline Containers
The Franchisee shall provide a co-mingled roll cart and glass recycling bin
to the customer within seven business days after a customer initiates
service if not transferred between customers. Roll carts shall be labeled to
identify approved recycling materials. The City Administrator or designee
shall have the opportunity to review approve the type and style of all bins.
Such approval shall not be unreasonably withheld if Franchisee- proposed
roll cart is of a conventional design and manufacture currently in
predominant use on the West Coast of the United States.
e. Deposit for Bins/Lost or Stolen Bins
Franchisees may not charge a deposit for the recycling roll cart or bin, but
may charge customers an approved replacement fee for lost or stolen bins.
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ASHLAND
6. Transportation and Marketing of Recyclable Materials
The Franchisee is responsible for transporting and marketing source-separated
materials for recycling by ensuring that all collected recyclables are delivered to a
processor or broker of recyclable materials or to an end-use market.
The Franchisee shall be prohibited from delivering or causing to be delivered any
collected recyclable material for disposal, except by prior approval of the City
Administrator or designee. Placement of properly prepared recyclables into any
container currently being used to contain Solid Waste, including the compartment
of a collection vehicle currently being used for solid waste, shall constitute a
failure to comply with this standard.
7. Residential Yard Debris Collection Standards
The following Residential Yard Debris Collection Standards are specific to
residential collection, and are in addition to the general collection standards
outlined in a previous section.
a. Yard Debris Collection Schedule
Franchisees shall provide year-round yard debris collection service at the
same frequency as a customer's subscription to co-mingled recycling
collection service. Service shall be provided on the same collection day as
recycling and solid waste collection.
b. Yard Debris Containers
Franchisees shall collect all properly prepared yard debris in a Franchisee-
provided roll cart. Yard debris must comply with the material and
preparation standards outlined in the definition of Yard Debris.
1) All customers receiving weekly solid waste collection service shall
receive a yard debris cart upon request. This yard debris cart will be
provided by the Franchisee at no additional charge. Collection of
yard debris will be subject to the charges shown on the current
approved rate schedule.
2) Franchisees may not charge a deposit for roll carts for any level of
service, except as provided in Special Billing for Credit Risks.
3) Franchisees may charge customers for lost, stolen, or damaged carts
at 100% of the bulk purchase price of a new roll cart most recently
paid by the Franchisee. The Franchisee is responsible for
replacement of carts damaged in the course of normal wear and tear.
9. Transportation and Marketing of Yard Debris
The Franchisee shall transport and market source-separated yard debris for
recycling by ensuring that all yard debris is delivered to a City-approved yard
debris processor. The Franchisee shall not deliver or cause to be delivered any
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ASHLAND
collected yard debris material for disposal, except by prior approval of the City
Administrator or designee. A Franchisee's placement of source separated yard
debris into any container currently being used to contain solid waste, including
the compartment of a collection vehicle currently being used to contain solid
waste, shall constitute a failure to comply with this standard.
10. Improperly Prepared Solid Waste
When the Franchisee encounters improperly prepared garbage, such as garbage
which contains hazardous or otherwise unacceptable material, garbage which is
too tightly packed to fall from the cart, or unbagged animal waste or kitty litter,
the Franchisee shall collect only properly prepared garbage if feasible and leave
the improperly prepared material..
The Franchisee is required to provide written notice to the customer of the reason
for non-collection. The date, service address and Franchisee contact information
shall be provided on the notice. The Franchisee shall retain a copy of the notice
and any needed support documentation.
11. Improperly Prepared Recyclable Materials
a. Collect Only Properly Prepared Materials
A Franchisee shall collect only properly prepared recyclable material
placed at Curbside, and shall leave at curbside the improperly prepared
material or materials.
b. Customer Notification
When a Franchisee encounters improperly prepared recyclable materials,
Franchisee is required to provide written notice to the customer of the
reason for non-collection. The date, service address and Franchisee
contact information shall be provided on the notice. The Franchisee shall
retain a copy of the notice and any needed support documentation.
c. Disposal of Improperly Prepared Recyclable Materials at Customer
Request
Except at the request of the Customer, the Franchisee shall not mix with
Solid Waste any materials placed out as recycling in or next to the
recycling bin. If recyclable materials are mixed with solid waste at the
customer's direction, then the material may be charged as extra solid
waste.
12. Improperly Prepared Yard Debris
a. Customer Notification
The Franchisee is required to provide written notice to the customer of the
reason for non-collection. The date, service address and Franchisee
contact information shall be provided on the notice. The Franchisee shall
retain a copy of the notice and any needed support documentation.
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ASHLAND
b. Disposal of Improperly Prepared Yard Debris at Customer Request
Except at the request of the Customer, the Franchisee shall not mix with
Solid Waste any source-separated Yard Debris that was improperly
prepared. If the Yard Debris is mixed with Solid Waste at the Customer's
direction, then it may be charged as extra solid waste if the volume causes
the Customer's next solid waste pick up to exceed the Customer's existing
level of service.
H. OTHER RESIDENTIAL COLLECTION ACTIVITIES
1. Bulky Wastes
Franchisees shall provide for the collection of White Goods or Bulky Wastes
within seven business days of a customer's request. Rates shall not exceed the
maximum rates set by the Council.
2. Neighborhood Cleanups
Upon request by the City Administrator or designee, Franchisee shall participate
in official neighborhood/community cleanup events once per year. The City
Administrator or designee, in consultation with the Franchisee, will specify
materials required to be collected at such events. Collection method (e.g. drop
box or door-to-door collection) will be mutually agreed upon between the City
and the Franchisee. Expenses incurred in the course of conducting cleanup
activities are allowable costs for rate review.
1. COMMERCIAL COLLECTION STANDARDS
The following Commercial Collection Standards are specific to commercial
collection, and are in addition to the general collection standards outlined in the
previous section.
1. Waste Evaluation
When a commercial or multi-family customer initiates service, the Franchisee
shall offer to perform an assessment of the customer's needs to assist the
customer in choosing an optimal combination of solid waste disposal and
recycling programs. The assessment should involve questions about the business
size, and specific queries to identify waste prevention and recycling opportunities.
The results of the assessment should be reflected in the services selected.
Assessments shall be maintained at least three years, and updated at the request of
the customer at least every three years. Franchisee shall offer solid waste needs
assessments to all commercial customers via bill stuffers, advertisements, and
Franchisee website a minimum of four (4) times per calendar year.
2. Commercial Containers
a. The Franchisee is required to provide roll carts or containers to all
commercial customers. When a customer initiates service, the Franchisee
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ASHLAND
shall provide containers to a customer no later than five business days
from the time of the customer request. Receptacles shall be designed for
safe handling and shall be durable, easy to clean, and be provided with
connected lids or covers that can be readily opened. Receptacles shall be
clearly identified by displaying the Franchisee name, telephone number
and logo prominently and conspicuously on the container. Any additional
information, graphics or signage shall be reviewed and approved by the
City Administrator or designee. Receptacles must be clean when
delivered to the customer.
b. Franchisees may not charge a deposit for carts and containers, except as
provided in Special Billing for Credit Risks.
c. Franchisees may charge customers for lost, stolen, or damaged
receptacles at 100% of the bulk purchase price of a new receptacle most
recently paid by the Franchisee. The Franchisee is responsible for
replacement of receptacles damaged in the course of normal wear and tear.
3. Scheduling
The Franchisee and the customer should mutually agree on the collection day(s)
and frequency of collection that meets the customer's needs and work into the
Franchisee's established routing.
4. Access
Containers shall be placed in a readily accessible location on a hard, level surface
extending to the street. An enclosure must be unlocked at the time of collection.
The driver should not have to push containers more than 25 feet in order to attach
them to the collection vehicle for dumping. The Franchisee may cumulatively
add City-approved extra distance, gate, or access charges for difficult to reach
receptacles.
5. Commercial Recycling Collection Standards
The following Commercial Recycling Collection Standards are specific to
commercial collection, and are in addition to the general collection standards
outlined in a previous section.
a. Commercial Recycling Containers
The Franchisee shall deliver appropriate recycling receptacles to the
customer within five business days after a customer initiates service. The
solid waste container.rates include a recycling component, and recycling
service is therefore provided to the customer at no additional charge.
b. Commercial Waste Evaluation
The waste evaluation may involve the provision of waste paper collection
boxesibins, roll carts, caged containers, or other standardized receptacles
in order to optimize separation of materials for recycling. The Franchisee
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ASHLAND
is required to provide adequate training to assist the customer in making
best use of the recycling collection system. The evaluation may also
include information regarding affiliates or sub-contractors that provide
specific waste reduction or recycling services.
6. Transportation and Marketing of Recyclable Materials
The Franchisee shall transport and market source-separated materials for
recycling by ensuring that all collected recyclables are delivered to a processor or
broker of recyclable materials or to an end-use market. The Franchisee shall not
deliver or cause to be delivered any collected source-separated recyclable material
for disposal, except by prior approval of the City Administrator or designee. A
franchisee's placement of properly prepared recyclables into any container then
containing Solid Waste, including the compartment of a collection vehicle
currently being used to contain solid waste, shall be a failure to comply with this
standard.
J. MULTIFAMILY SOLID WASTE COLLECTION STANDARDS
The following Multifamily Collection Standards are specific to multifamily
collection, and are in addition to the general collection standards outlined in the
previous section.
1. Waste Evaluation
When a customer initiates service, the Franchisee shall offer to perform an
assessment of the customer's needs, and assist the customer in choosing an
optimal combination of solid waste disposal and recycling programs. The
assessment should involve questions about the size of the complex, and specific
queries to identify the best location for recycling collection sites or depots. The
results of the assessment should be reflected in the services selected.
Assessments shall be maintained at least three years, and updated at the request of
the customer at least every three years. Franchisee shall offer solid waste needs
assessments to all commercial customers via bill stuffers, advertisements, and
Franchisee website a minimum of four (4) times per calendar year.
2. Multifamily Solid Waste Containers
a. The Franchisee is required to provide roll carts or containers to all
multifamily customers. When a customer initiates service, the Franchisee
shall provide, containers to a customer no later than five business days.
from the time of the customer request. Receptacles should be designed for
safe handling and shall be durable, easy to clean, and provided with
connected lids or covers that can be readily opened. Receptacles shall be
clearly identified by displaying the Franchisee name and telephone
number prominently and conspicuously on the container. Receptacles
must be clean when delivered to the customer.
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ASHLAND
b. Franchisee may not charge a deposit for carts and containers, except as
provided in Special Billing for Credit Risks.
c. Franchisees may charge customers for lost, stolen, or damaged
receptacles at 100% of the bulk purchase price of a new receptacle most
recently paid by the Franchisee. The Franchisee is responsible for
replacement of receptacles damaged in the course of normal wear and tear.
3. Scheduling
The Franchisee and the customer should mutually agree on the collection day(s)
and frequency of collection that meet the customer's needs and work into the
Franchisee's established routing.
4. Access
Container rates assume that containers are located in a readily accessible location
or enclosure that is unlocked. The driver should not have to push containers more
than 25 feet in order to attach them to the collection vehicle for dumping. The
Franchisee may cumulatively add City-approved extra distance, gate, or access
charges for difficult to reach receptacles.
5. Multifamily Recycling Collection Standards
The following Multifamily Recycling Collection Standards are specific to
multifamily collection, and are in addition to the general collection standards
outlined in a previous section.
a. Multifamily Recycling Containers.
The Franchisee shall deliver appropriate recycling receptacles to the
customer within five business days after a customer initiates service. The
solid waste container rates include a recycling component, and recycling
service is therefore provided to the customer at no additional charge.
b. Waste Evaluation.
The Waste Evaluation may involve the provision of collection boxes/bins,
co-mingled roll carts, caged containers, drop boxes, or other standardized
receptacles in order to optimize separation of materials for recycling. The
Franchisee is required to provide adequate training to assist the customer
in making best use of the recycling collection system.
6. Transportation and Marketing of Recyclable Materials
The Franchisee shall transport and market co-mingled and/or source-separated
materials for recycling by ensuring that all collected recyclables are delivered to a
processor or broker of recyclable materials or to an end-use market. The
Franchisee shall not deliver or cause to be delivered any collected co-mingled or
source-separated recyclable material for disposal, except by prior approval by the
City Administrator or designee. A Franchisee's placement of properly prepared
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ASHLAND
recyclables into any container other than containing Solid Waste, including the
compartment of a collection vehicle currently being used to contain solid waste,
shall be a failure to comply with this standard.
7. Collection of Approved Source-Separated Recyclable Material
The Franchisee shall collect the following materials set out for collection at
multifamily complexes, so long as the materials are properly prepared, separated
from solid waste and yard debris, and placed at the appropriate point of collection:
1) Approved glass recycling
K. SYSTEM AND EQUIPMENT STANDARDS
1. Vehicle Condition and Maintenance
All collection equipment must be maintained and operated in compliance with all
local and state statutes, ordinances, and regulations including compliance with
regulations related to the safety of the collection personnel and the public.
2. Prevention of Leaking and Spilling Loads.
All vehicles shall be constructed, loaded, operated and maintained in a manner to
reduce, to the greatest extent practicable, the dropping of, leaking, blowing,
sifting or escaping of Solid Wastes, Recyclable Materials, liquids, vehicle fluids,
or lubricants from the vehicle, except the normal leakage of fluids typically
associated with property maintained vehicles. Leaks due to equipment failure
shall be immediately contained and remedied as soon as practicable.
3. Vehicle Inventory
The Franchisee shall provide the City Administrator or designee with an
inventory of vehicles used within the City. The list shall include vehicle ODOT
and Oregon license plate numbers.
4. Vehicle Covers
All open-body collection vehicles shall have a cover, which may be either an
integral part of the vehicle or a separate cover. These covers shall be used while in
transit, except during the transportation of Bulky Wastes.
5. Vehicle Identification
All collection vehicles shall bear a unique identifying number, and shall clearly
display company identification and contact information prominently and
conspicuously on both sides of the vehicle. Any additional information, graphic or
signage must be reviewed and approved by the City Administrator or designee
prior to installation and use.
Before a new or used vehicle is put into service the vehicle must include all
required identifications. All vehicles shall have current, valid registration with the
State of Oregon and all drivers shall possess a current, valid commercial driver's
license if required for the vehicle type.
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ASHLAND
6. Compliance with Law
The Franchisee shall comply with all applicable federal, state, and local laws and
regulations relating to driving, transportation, and Waste and Recyclable Material
collection and disposal.
7. Processing and Storage Yards
Any processing and storage of collected materials shall be undertaken in a
location suitable and adequate for such activity. Processing and storage facilities
shall comply with all applicable zoning ordinances and any other applicable local
and state statues, ordinances and regulations.
8. Facilities for Storage, Maintenance and Parking
Facilities for storage, maintenance, and parking of any collection vehicles,
receptacles, or other equipment shall comply with all applicable zoning
ordinances and any other applicable local and state statues, ordinances and
regulations.
9. Compactors
Stationary compactors for handling solid waste shall comply with applicable
federal, state and local safety regulations. No such compactor shall be loaded so
as to exceed the safe loading design or operation limits of the collection vehicles
used by the Franchisee. Compactors shall comply with all local, state and federal
weight regulations or standards. A person who wishes services for a compactor
should, prior to acquisition of such compactor, inquire of the Franchisee as to
compatibility with the Franchisee's equipment or equipment that the Franchisee is
willing to acquire. In the event a weight violation occurs, all costs associated with
such violation shall be the individual responsibility of both the generator and the
owner of the compactor. The generator shall be responsible for insuring
compatibility with the Franchisee's equipment and all cost of retrofitting any
collection equipment shall be the responsibility of the owner of the compactor.
L. INFECTIOUS AND HAZARDOUS WASTE
1. The Franchisee shall provide for collection of medical and infectious waste
either through its own forces or by subcontract with a qualified disposal firm for
this service. In either case, the Franchisees and their subcontractors shall conform
to all rules and laws including, but not limited to, those of the State of Oregon
applying to the collection, transportation, storage, treatment, and disposal of
,.medical and infectious wastes.
2. The Franchisee is not required to collect hazardous wastes from customers. If a
Franchisee identifies a hazardous waste that the customer has placed for
collection with solid waste, recyclable materials, or yard debris collection, the
Franchisee shall leave the material along with a notice indicating the presence of
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ASHLAND
the hazardous material. The Franchisee shall retain a copy of the notice and
appropriate supporting documentation.
3. When the Franchisee refuses to pickup due to the presence of a hazardous
substance, the Franchisee shall offer the following options once the hazardous
materials are removed completely from the Solid Waste, Recyclable Materials
and/or Yard Debris:
1) Immediate collection of the Solid Waste, Recyclable and/or Yard
Debris for the City-approved Go-back Rate.
2) Collection of the Solid Waste, Recyclable and/or Yard Debris at the
discretion of the Franchisee, this collection shall be subject to an extra
fee, per the then current approved rate schedule.
M. CUSTOMER SERVICE STANDARDS
1. Office Requirements
Franchisees shall have office staff or an answering machine or service available to
accept Customer calls and complaints at all times. Phone lines must be dedicated
customer service phone lines with the Franchisee's business name listed as a
business in the telephone directory.
2. Resolution of Customer Complaints and Inquiries
a. Response Time
Franchisee shall respond to customer inquiries or complaints within 48
hours, not including weekends or holidays.
b. Complaint Log
Franchisee shall maintain a record of all complaints made to Franchisee
regarding service. This record or complaint log shall include at a
minimum the following information: the name, address, and phone
number of the complainant, if known; the date of receipt of the complaint;
the subject matter of the complaint, the disposition of the complaint; the
date of disposition of the complaint, the date and method of notification to
the complainant of the disposition. The records of complaints shall be
available to the City Administrator or designee for inspection at any time
during normal business hours. A copy of the complaint log for the
calendar quarter shall be submitted to the City with the franchise payment
for that calendar quarter. Complaint records shall be maintained on the
Franchisee's premises for two years.
3. Franchisee Demeanor
The Franchisee and its employees shall always be courteous in its interactions
with customers, and shall not use foul or abusive language. In evaluating
complaints regarding discourteous behavior, the City Administrator or designee
may base his or her decision on whether or not a reasonable person would find the
actions or response of the Franchisee to violate community standards for courtesy.
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ASHLAND
4. Billing Standards
a. Billiny Period
Except in cases of customers that qualify as credit risks, Franchisees shall
bill customers not more than ninety (90) days in advance of the end of the
service period or sixty days in arrears of the beginning of the service
period. Payments shall not be due more than 31 days before the end of the
service period being billed, nor less than fourteen days after the date of the
postmark of the billing.
b. Billing Contents
Billings shall contain the following minimum elements: service address,
coverage of dates being billed, and the billing rate for each of the
customer's services and level of service. The bill will also contain an
aggregated total of all additional charges during a period.
c. New Customers or Customers to Whom Service Has Been Suspended
New customers that do not meet the credit guidelines submitted by the
Franchisee and approved by the City, and customers who require
suspension of service for non-payment of account three or more times
within a calendar year may be considered credit risks. The Franchisee is
responsible to select a credit policy that complies with all laws, and to
apply the policy uniformly throughout its customer base.
d. Credit Risk Customers
Franchisees may handle credit risk customers in one of two ways:
Advance Billing: Franchisees may require credit risks to pre-pay up to
three months in advance of service, and continue to perform service
for prepaid service up to one year. After one year of prompt payment,
the customer must be reclassified to regular status.
Deposit: A Franchisee may charge a deposit of three month's revenue.
The deposit must be returned to the customer after twelve months of
consistent prompt payment.
e. Late Fees/Service Charges
Franchisees may assess late fees and service charges, including interest
and other charges related to the cost of collecting overdue payments on
accounts not paid by their due dates. Such charges shall be reasonable and
_ approved by the City Administrator or designee in advance. Charges may
not be imposed earlier than ten days before the end of the service period
being billed, or ten days after the due date, whichever is later.
5. Refusal of Service
Franchisees may refuse collection service to any customer if the customer has not
paid a bill unless the customer has initiated a formal dispute within thirty (30)
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ASHLAND
days of the billing due date. In no event, however, shall a Franchisee suspend
service without first notifying the customer in writing not less than seven business
days prior to the date of intended suspension of service. The Franchisee may
assess and receive City-approved re-start and collection fees from the customer
prior to resuming service.
6. Responsibilities for Customer Education/Promotion
The Franchisee shall assist in the development and participate in promotion and
education efforts as outlined below.
7. New Customer Information
Franchisees shall provide each new customer with information that is reasonable
to permit the customer to make a reasoned choice of service. Franchisees shall
actively assist the customer in making the final selection. Within seven business
days of a customer's initial call, a Franchisee shall offer the customer printed
material describing the levels of service and rates and/or refer the customer to the
Franchisee website for complete service information.
8. Distribution of City-provided Informational/Educational Materials
Franchisees shall coordinate with the City Administrator or designee for the
distribution of City-provided information and education notices to all customers
including customers whose service is provided monthly, on-call and to residents
of rental property.
9. Notice of Change in Schedule
Franchisee shall provide notice of changes in regular collection schedules or any
other pertinent information with a minimum notice of fourteen (14) business days.
Notice shall be in the form of written material sent via regular first class postal
service or via email notification if applicable.
10. Coordination with City .
Franchisee shall notify the City when considering Franchise-wide promotional or
educational activities, and provide the City Administrator or designee with
advance copies of materials for review and approval prior to distribution to
customers.
N. CUSTOMER RESPONSIBILITIES
1. General Customer Requirements
a. All residential, multi-family and commercial properties in the city shall
provide for collection of solid waste, recyclable materials and yard debris
in accordance with Ordinance No 2013-
b. Except as otherwise provided by a written agreement between the
landlord and tenant, the owner of any residential or multi-family dwelling
complex who resides, rents, leases or lets dwelling units for human
habitation shall:
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ASHLAND
(1) Subscribe to and pay for collection service with the franchisee
on behalf of his/her tenants or, if the dwelling complex contains
four or fewer units, self-haul solid waste to an approved disposal
facility;
(2) Provide a sufficient number of receptacles of adequate size to
prevent the overflow of solid waste, recyclable materials and yard
debris from occurring. Receptacles shall be placed in a location
accessible to all dwelling units;
(3) Provide for sufficiently frequent, but at least weekly, collection
of solid waste and recyclable materials, except for compactors,
which shall be collected at least every fourteen (14) days; and
(4) If the dwelling complex has four or fewer units and the owner
is self-hauling solid waste, provide for the same level and
frequency of collection of recyclable materials and yard debris as
are required of Franchisee serving residential customers
2. Residential Placement of Receptacles and Materials
Residential customers are required to place materials for collection at the
appropriate point of collection as described in the Collection Standards section.
Customers should place receptacles so that they do not block sidewalks,
driveways, public streets, or other rights of way. Residential receptacles must be
placed prior to 7:00 am on their collection days.
Customers in areas where Franchisee have automated collection shall be expected
to make reasonable accommodations to place carts and park cars so as to reduce
interference with automated collection equipment. It is the Franchisee's
responsibility to educate customers about the necessary accommodations.
Receptacles must be removed from the curb and into the customer's yard area
within 24 hours from the time of collection.
3. Commercial Set Out Location
Commercial and multifamily customers shall set solid waste, recyclable materials,
and yard debris receptacles at a location that is readily accessible and safe to
empty or load, that does not require a Franchisee to go up and down stairs, and
that is agreed upon by the Franchisee and the customer.
4. Recycling to Set Out in Recycling Bins
Recyclable materials shall be placed in co-mingle roll carts or recycle
bins/containers that clearly segregate them from Solid Waste or other materials
the customer does not want to discard.
5. Secure Lightweight Materials
Lightweight materials such as ashes, Styrofoam "peanuts", kitty litter, and
sawdust shall be placed in a tied or scaled bag or box and placed securely within a
closed container to minimize dispersion prior to and during dumping into the
Rules - 20
CCTV OF
ASHLAND
collection vehicle or container. Failure to comply is a violation of Ashland
Municipal Code 9.08 and subject to penalties described therein.
6. Contents of Carts/Containers Must Fall Freely
Contents of Solid Waste or Yard Debris carts/containers must fall freely. The
Franchisee shall not be responsible for digging the contents out of a cart or
container.
7. Weight Limits
Contents of receptacles must fall freely. Franchisees are not responsible for
digging the contents out of receptacles. The following table describes approved
weight limits:
Size/Type Maximum Weight (Including Container)
U to and including 32 gallon carts 65lbs.
Franchisee-provided carts over32, up to 100lbs.
and Including64Gallons
Franchisee-provided carts over64, up to 145 lbs.
and including 96 Gallons
Containers equal to or greater than 1 cubic 250 lbs. Per cubic yard
and and less than 10 cubic yards
Containers greater than 10 cubic yards Weights subject to Franchisee Truck
Capacity
Compacted Containers 500 lbs. Per cubic and
8. Responsibility to Separate Overweight or Overfilled Contents
When containers are overweight or overfilled, it is the customer's responsibility to
separate wastes into additional receptacles or bags so that weight limits are
observed and container is not overfilled. The additional receptacles or bags are
subject to extra charges as applicable.
9. Preparation of Recyclable Materials
Customers shall prepare recyclables in accordance with City-approved
instructions provided and published by the Franchisee.
10. Preparation of Yard Debris
The customer shall place yard debris in provided roll carts.
11. Infectious Waste Setout
Infectious wastes, including hypodermic needles, must be placed in appropriately
marked containers. Customers shall not place these items into roll carts or
containers for collection of Solid Waste, Recyclables or Yard Debris. Customers
must contact the Franchisee to determine proper disposal options.
12. Hazardous Waste
Rules - 21
CITY OF
ASHLAND
Customers shall take appropriate actions to ensure that hazardous materials,
chemicals, paints, corrosive materials and hot ashes are not put into a receptacle
for solid waste collection.
13. Unacceptable Waste
The customer shall not place unacceptable materials in solid waste receptacles.
Unacceptable materials include: oils, fats, and other liquids generated by
commercial entities, semi-solid wastes, hazardous wastes, and flammable
materials. The customer should contact their Franchisee for information on proper
disposal.
14. Payment Responsibility
Customers must pay their invoices within the due dates specified by the
Franchisee, as long as the Franchisee has submitted a collection plan with the City
and has received the City's approval of the plan. Customers who do not pay the
amount due within terms are subject to stopped service and collection actions.
15. Notification of Missed Collection or Billing Errors
Customers are responsible for prompt notification of the Franchisee when
problems arise such as apparent missed collections or billing errors. Customers
must notify the Franchisee regarding obvious billing errors, such as improperly
charged extras, within 60 days of receipt of an original invoice in order to receive
credit. Customers may not deduct from payment for past missed pickups.
16. Vacation Credit
The customer is responsible for requesting a vacation credit from the Franchisee.
Vacation credits are available only for periods of at least two weeks, and must be
requested at least 48 hours in advance of the first pickup that is scheduled during
the vacation period.
0. REPORTING TO THE CITY
1. Equipment and Depreciation
Franchisee shall describe the methodology use to set the standard economic lives
of equipment based upon industry input and prevailing practices and provide such
reporting to the City Administrator or designee for review and approval with
methodology.
2. Annual Reports
The Annual Report will ask Franchisees to detail Revenues and Expenses
(allowable and unallowable), in an income statement format, and provide a
variety of information about customer counts, cost allocation, customer
classifications, service levels, disposal volumes, and recycling activities. The
majority of expenses incurred by a collection company can be associated with one
of the following key allocation bases:
I
Rules - 22
CITY OF
ASHLAND
a. Truck Hours-The number of hours that collection vehicles are
operated within an area throughout the year.
b. Labor Hours-The number of paid hours for collection personnel.
c. Customer Count-The number of customers within each customer
classification at each Service level.
d. Disposal Volume-The number of yards or tons collected within an .
area or by customer classification
e. Revenue-The amount of revenues generated within an area, service,
program or customer classification.
3. Quarterly Studies
Franchisees may be required to conduct semi-annual studies of each route for two
weeks to determine relative truck, labor, and disposal amounts or ratios to be used
in allocating expenses to the Franchisees' various operating areas. Franchisee
must make these studies or ongoing allocation programs available for inspection
by the City per the Access For Inspection provision of this ordinance. Franchisees
will use the key allocation information to allocate shared allowable expenses. The
City will determine the revenue and expense detail items and the associated
allocation bases to be used for allocation of each item.
4. Cost Allocation of Operations
In addition to the results of operations within the City of Ashland, Franchisee
shall report totals for all operations that share significant operational,
management, and administrative expenses with the Ashland Franchise. Resources
allocated from regional or corporate offices or affiliates shall be distributed to
appropriate expense line items, and shall also be disclosed in a schedule
describing total allocations and their distribution to individual expense line items.
All allocations from Affiliated Companies must be described and must be equal to
or less than the fair market value of similar goods and services purchased from a
third party.
5. Program Meetings
As scheduled by the City Administrator, Franchisee shall attend program status
meetings. The City will provide reasonable advance notice of required meetings
by facsimile, email, or mailed notices.
9L ,
Rules - 23
CITY OF
ASHLAND
Memo
DATE: September 11, 2013
TO: Solid Waste Working Group
FROM: Tom Beam, Conservation Commission rep to working group
RE: Conservation Commission Initial Recommendations
As part of my role to represent the views and desires of the Conservation Commission on the topic of
the draft solid waste franchise agreement and administrative policies, the following is an initial set of
recommendations the Commission would like the working group and ultimately the City Council to
consider as the development of a new franchise agreement with Recology Ashland Sanitary moves
forward towards a final, approved set of documents.
1. Include both short and long term goals and targets for both increased waste diversion and
decreased waste collection based on Ashland specific data that includes a review and revise
policy and process.
2. Include the recycle center as an allowable expense for an appropriate time period to allow broad
and comprehensive opportunity for public input and deliberation on the merits and feasibility of
the long term operation of the facility.
3. Incorporate the Purpose, Policy and Scope language from the current City of Beaverton Solid
Waste Management ordinance (attached) into the City of Ashland ordinance.
4. Include curbside post consumer services for both residential and commercial customer
classifications
5. Include fleet management best practices of alt fuel, track./reduce overall vehicle miles
travelled, max age of fleet, etc) to ensure efficient use of resources and to mitigate impacts on the
community relating to vehicle fleet operations.
The Commission would be very interested in continuing to be a resource to the working group and the
Council as the project moves forward and could assist in developing the targets and other details related
to the above recommendations as needed/desired by Council.
I
City of Ashland
ADMINISTRATION DEPT Tel: 541-552-2046
20 East Main St Fax: 541488-5311
Ashland, Oregon 97520 TTY: 800-735-2900
w .ashland.or.us
adarn@ashland.or.us
City of Beaverton Purpose, Policy and Scope
4.08.020 Purpose, Policy and Scope.
A. It is the policy of the City of Beaverton to reduce the amount of solid waste generated and
disposed per capita by undertaking aggressive waste prevention and recycling activities.
1. The City shall promote the development of environmentally sound and efficient practices
regarding the collection of solid waste, recyclable material, and compostable material.
2. In order to attain these goals and protect public health and the environment, the City shall
regulate collection of solid waste, recyclable material and yard debris within the city limits.
B. In carrying out this policy, the goals of this chapter are:
1. To promote sustainability throughout the collection system, by seeking to maximize efficiency,
equity and economic vitality, improve worker safety and reduce environmental and human health
impacts over the entire life cycle of materials.
2. To reduce the amount of solid waste generated, as measured on a per capita basis.
3. To achieve a 75 percent recovery rate from the solid waste stream by 2020 and 90 percent by
2050.
4. To ensure the safe and sanitary collection, transportation and recovery of solid waste,
recyclables, and compostable materials.
5. To provide Beaverton residents and businesses with the opportunity to recycle more materials
through convenient on-site, curbside and depot collection programs.
6. To establish and enforce collection standards for solid waste, recyclables and compostable
materials to ensure uniform, cost effective and high quality service delivery to all customers.
7. To establish rates that are fair to the public, the franchisee and the City, encourage waste
reduction, and promote safe, efficient collection.
8. To promote awareness of the waste reduction system in order to achieve the highest
participation possible throughout the community.
9. To achieve reductions in toxic waste and minimize its harmful impacts and to reduce
greenhouse gas emissions.
10. To reduce life cycle impacts by promoting product stewardship and producer responsibility.
[BC 4.08.020, added by Ordinance N8:'4203, 5/6/02; amended by Ordinance No. 4613, 4/2/13]
City Ashland
ADMINISTRATION DEPT Tel: 541-552-2046
20 East Main St Fax: 541488-5311
Ashland, Oregon 97520 TTY: 800-735-2900
w .ashland.or.us
adam@ashland.or.us
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City of Ashland
Solid Waste Rate Review Draft Report
h
Table of Contents
Executive Summary 2
Background 3
Cost of Service / Rate Calculations 5
Residential Waste and Recycling Collection 5
Commercial Waste and Recycling Collection 6
Drop Box Service 6
Recycling Depot t...................................................................... 7
Administration 8
Conclusion and Recommendations....... o : 8
Appendix - Financial Summaries ..............................................................................................10
A.
(Amssociates Page 11
City of Ashland !4ri
rtt~,
Solid Waste Rate Review Draft Report
Executive Summary
The recent proposal submitted by Recology Ashland Sanitary (Recology) for a 23% increase in
collection rates generated a predictable response from Ashland City Council members who
have questioned the need for the amount requested. While an analysis of the rate request
W'Z
revealed that an increase is warranted, it also shows that changes are required. The solid waste
and recycling system is the responsibility of the City of Ashlaannd. Through its franchisee,
Recology, the City exercises its regulatory obligation t provideswaste and recycling services at
reasonable rates.
The large rate increase is a symptom of the cu re t system that will contfn~u~e to require
significantincreases if no modificationsfor improvedfficiencies are completed. There have been
substantial changes in both technology and regulation in the waste industry over the last 15 iR~
years that have and will impact the citizens of Ashland. City Council members need to view this
rate request as a starting point to update`--their system to be both cost effective and
environmentally responsive
Ashland has a responsive partner in Recology and neetls to capitalize on their experience and
willingness to work in<conlunctionoith City managers and elected officials to modernize the
City's waste management systemWhile elected representatives are reluctant to increase fees
to their constituents, th y must fully consider that4updating their solid waste and recycling
e~~ E
system will require investments that
atfill,yield stabled predictable rates in the future.
{
t131'ssociates Page 2
City of Ashland --loft
Solid Waste Rate Review Draft Report
L t$~
Background
Bell & Associates was contracted to provide the City of Ashland (the City) with solid waste
consulting services for the rate request submitted by Recology Ashland Sanitary (Recology).
The following report summarizes the approach used to substantiate the rate request as well as
highlight the need for the City to update the solid waste management system.
At the request of the City, Recology submitted an Excel Cost Report that detailed the financial
and operational results of collections operations over the period of October 1, 2010 to
September 30, 2011. The format of the report provides the capacity to calculate the cost of
service for each line of business (residential, commercial drox, medical waste, and
recycling depot). ,
r
Reported results were analyzed and the following taskswere completed:
AFT) X
a. Using a predictive test of revenue for ;each line of business, ensure the reported
revenues are reasonable for the number of reported customers
b. Using the reported Direct Cost line items determine if the expense is reasonable in
relation to the customer and operational datgenteredtfrom the detailed: cost report.
c. Determine if the reported disposal expense is reas nable using a predictive test of
disposal cost.
d. Using the reported administrativ Tnesitems, determ nee if the expense is reasonable in
relation to the operational data entered frohe•detailed cost report.
t
e. Compare reported results in the City of Ashland to other collection companieswithin the Allow
State of Oregon,to pro de reasonable assurance thaMosts incurred are comparable to
similar operations
f. Review the costs between the,City and Jackson County to determine if the allocations
are,reasonable
Reportedicoll edo costs to the City were reducedsby $96,101 in the following areas:
1. Drop~box services were allocated to the transfer station which reduced the reported
costs byt$129,808
~r
2. Revenue from the sale, kkk' 14 recyclable materials collected at the transfer station was
reported asgcoiiection revenue. This adjustment reduced the amount of recycling
revenue reported In thCCity by $29,719.
3. Franchise fee ez ense was increased b $3,988 to coincide with the re ortin
p .1 y p g period of
the report submitted by Recology.
The adjusted results from October 1, 2010 to September 30, 2011 are summarized in the table
on the following page:'
'The detailed financial analysis of the report submitted by Recology is included in the Appendix of this
report.
(mssociates Page 13
City of Ashland aQjrfi
Solid Waste Rate Review Draft Report
Table 1 - Adjusted Results of Operations for the Fiscal Year October 2010 to September 2011
1,324,134 1,182,017 322,605 29,850 21,145 2,879,751
1,480,331 1,036,475 321,375 43,683 142,544 3,024,408
M"M
-156,197 145,542 1,230 13,833 121,399 144,657
12.30/o
0.4% 46 3% 574.1 % 5.0%
Since the submitted report covered the period prior to the January 2012 rate increase, revenues
and expenses were adjusted to project the results of operations from October 1, 2011 to
September 30, 2012. Customer counts were multiplied the rate increase for the nine months
dam
of 2012 and line item expenses were inflated for, increases such as pay raises, health
insurance, and fuel. The following table summarizes the projected 2012 results:
Table 2 -Projected Results of Operations for the Fiscal Yearober 2011 to Seber 2012
1,385,179 1,219,738 337,524 31,529 21,145 2,995,115
1,524,464 1,035,730 326,919 43,157 141,098 3,071,368
-139,285 184,008 10,605 11,628 119,953 711,253
® t '10 E . ,15.15.1 % 3.1$~°, >a 6 _ .567.3% 2.6%
Segregating mn3- aste colleetio~ nTand the Arecng depot from waste and recycling
collections, thd results improve to a positivve income and margin as summarized
below:
Tajected:W and Recycling Collection Results for Current Fiscal Year
1,385,179 1,219,738 337,524 2,942,441
1,524,464 1,035,730 326,919 2,887,113
139,285 184,008 10,605 5
~0 0 5 ,3 28
-10 1r .
(Amssociates Page 4
City of Ashland I ifiSi.
Solid Waste Rate Review Draft Report `36101 1
Cost of Service / Rate Calculations
The assumed operating margin for collection operations is 10% on allowable costs. With a few
minor exceptions, this is the percentage used by most jurisdictions within the State of Oregon to
set collection rates. The margin is calculated using the following formula:
Allowable Costs / (1 - Operating Margin) = Revenue Required from the Collection Rates
Franchise fees are calculated at 5% of the allowable costs with margin and then added to the
rate.
Residential Waste and Recycling Collection(
Residential service is a mixture of cans, roll carts, and plastic bags manually collected by an
aging work force with collection trucks better suited for semi-automated cart collection. This
; H
collection system and fleetzis outdatedand carries b~substantial risk of
of injury to the workforce.
Each week waste is collected from approximately 5,800 customers. Most of the customers
subscribe to the 32 gallon can (5,168) or the 32 gallon cart (535). The cost ofiservice for the 32
gallon can/cart is $25.73 per customer per month whereas he current rate is $17.86. Setting the
rate at the cost of service would require a 440/c increased
Recommendation: Implementing a f Ily a dd-collection system will reduce the collection
costs. Recology would need to invest an', dd itionat$250,006 In" carts; however, the
estimatedsavings would b pproximately $76,000 p r{year from,the reduction of one route
seNati csa i; r
truck and drivecThis,is Yrconserv~ative estimate and; couldbe`greater with other minor changes
to the system and the reduction of work related i -Uri es3. The rate impact for this change is
$0.80 per customer per month.The following table details the cost components for residential
service t F=
Table 4 Cost of'Service for Resitlential Waste and Recycling Collection
te fe
Sohd Was Disposal"Cost per Month $4.50 `T` $450 ,<~T "Ne
Solid Waste Collection,,Cost p' onth $11.62 $10.82
Comingled Cart Recycling $1.86 $1 86>
Administration $4.07 $4.07
Total Cost " $22.05 $21.25" t `
Operating Margin (10%) on Cost $2.45 $2.36
City 5% Franchise Fee $1.23' 2 With the exception of two 2009 Freightliners, the collection fleet is nine years or older.
3 Recology has 10 drivers who are assigned to residential collection routes. The average age is 51 years.
Only two of the drivers are under the age of 50 and one is 64 years old. The current manual collection
system substantially increases the likelihood of a work related injury.
(a0ssociates Page 15
City of Ashland
Solid Waste Rate Review Draft Report
`t t
Total Collection Rate $17.86 $25.73 $24.79
Commercial Waste and Recycling Collection
Recology utilizes a rear-load container system for the storage and collection of waste from
business customers. Containers are available in only three sizes: 1 yard, 1.5 yards, and 2 yards.
Rear load recycling containers are 2 yards in volume. (Many commercial customers that don't
generate large volumes of materials or that don't have the space for a container utilize a roll cart
for recycling.) While many businesses within the City have limitations on the amount of space
available for the waste and recycling containers, there are customers that could utilize a larger
container and reduce the frequency of collection and consequently, costs for both the customer
and Recology.
Unlike the residential rates, the commercial rates Table 5'-<Commercial Collection Costs
are regressive (volume discount) and puts the
heaviest cost on the one yard container collect', Cost Component Cost per Yard
once a week. The monthly rate for a 1 yard Collection $4.57
container collected once a week is $ 84.44. Disposal $3.96
Dividing that rate by 4.33° pick-ups per month AFN 1~. ds $4.34
equals $19.50 per collected yard. The rate=for a 2 Margin $1.43
yard container collected seven times a week is
FrancFiise,Fees $0.72
$690.76, which is $11.39 per collected yard The
cost of service per collected yard of solid waste is Total Cost per Yard $15.02
detailed in Table 5 tostherightN I
Drop Box Service"
Drop boxservi pr videdtto,three p~imary,customer categories: Ashland waste generators,
the recycg depot and the transfer station. Calcula ng the cost of drop box service is the sum
-low
of the following activities Drop Box Pull Administrative Cost, Operating Margin, Franchise Fees,
and Disposal
The cost of operating a roll off truck used to provide drop box service is $81.45 per hour. The
average time top 0up a drop box, transport to the transfer station and dispose of the waste,
and return the box tWthe customer or to the container yard is one hour. The pull fee is simply
the cost per hour multiplied;by one hour. Roll off compactors require 30 minutes of additional
time to disengage and engage the container mechanism to the compactor, so the pull fee for a
compactor is the cost per hour multiplied by 1.5 hours.
The administrative cost per drop box pull is $35.14 and is simply added to the service fee to
calculate the cost of drop box service.Margin is calculated on the sum of the pull fee plus the
administrative cost. The franchise fee is 5% of the cost and margin.
This factor is 52 weeks a year divided by 12 months a year (52 / 12 = 4.33)
(Amssociates Page 16
City of Ashland 1IONh
Solid Waste Rate Review Draft Report
l t
Disposal has been calculated as a pass-through expenses that is assessed on the volume of the
materials in the drop box. Non compacted waste loads are charged $10 per ton at the transfer
station and compacted loads are $23 per ton.The following table details the cost of service for
drop box and compactor service.
Table 6 - Drop Box Cost of Service
Franchise Total Cost of
Disposal
Level of Service Pull Cost Margin Fees Service
15 Yd. Compactor $157.32 $17.48 $8.74 $345.00 $528.54
20 Yd. Compactor $157.32 $17.48 $&74Z $460.00 $643.54
25 Yd. Compactor $157.32 $17.48 $8.74 $575.00 $758.54
40 Yd. Compactor $157.32 $17.48 $8.74 $920.00 $1,103.54
7 Yd. Open Box $116.59 $12.95 $6.48 $70.00 $206.02
10 Yd. Open Box. $116.59 $12.95 $6.48 $100.00 - $236.02
25 Yd. Open Box $116.59 $12.95 $6.48 $250.00_ $386.02
40 Yd. Open Box $116.59. $12.95 $6.48/$400.00 $536.02
Recycling DepoTthe The depot was establto
provide Ashland residrtunity to?able 7 Re cycling Depot Cost
recycle under the pr visio f ORS,459A. It Description is arranged to accept,smalll quantities of Labor / Drop Box $ 130,969
recyclable materials from drop off Admin $ 101129
customers.,ln 2007, the City implemented 'a
Operating Margin $ 15,678
comingled recycling:oart,collection.system
that serves ll residential and many` Total Cost $ 156,776
comm re cial customers. Because the depot Less Recycling Revenue $ (21,145)
and the commingled recycling cart program Revenue Requirement $ 135,631
both provide residents and businesses with 6
~ ~ Cost per Customer per Month $1.77
the opportunity to recycle, the City`needs to
decide if wants to ontinue to fund the operation of the depot or phase it out. The annual cost for
the operation is an additi \\l $1 :77 per residential and business customer per month.
Table 8 - Collected Recyclable Material by Program
Program %of
Ashland Residential Curbside 92,006 71%
6 Pass-through expense is added to the customer invoice without an additional mark-up or margin.
6Assumes 6,400 total customers - 6,000 residential customers and 400 business customers.
0 associates Page 17
City of Ashland !@tfi
Solid Waste Rate Review Draft Report
Ashland Commercial Collection 29,581 23% The tableto the left compares the
Ashland Recycle Center 7,800 6% total yards collected from the
residential,
Total ALL Ashland Yards _ 129,387 100% commercial, and depot
recycling programs.
The cost savings from phasing out the depot can be compared in Figures 2 and 3 in the
appendix.
Administration
Administration costs include all expenses T, abl 9 - Administration Costs
other than the collection operations. The . .111-11
projected costs to the City for the current year Managementit,, $133,273
are 23% of revenue and 23% of direct costs. Admin / Customer Svc. / Benefits $159,924
These costs are high when compared to both Corporate Overhead $210,505
locally owned companies within the State of Rent/ Billing/ Utilities/ Other $188,565
Oregon as well as the national waste ~.3Total Administration`~Costs $692,267
management companies.
Four locally owned and operated collection companies located in the Willamette Valley with
comparable collection operations and revenues were compared to Ashland Sanitary. The
national companies all have operationsxthrougliout Oregon. The average administration cost for
the locally owned companies,in 2011 was~od16% of'r"even~ue and ~~5/0 of total costs whereas the
national companies ~f?or the"same;time peri reportedr15%of revenue and 21% of total costs.
Recology is the 7 l` argest waste management company in the US with operations in four
e k ,3x=~
Western states. Over the last five years Recology has been aggressively acquiring smaller
waste management compames,such as Ashland Sanitary. One of the primary objectives with
the acquisity n of any col\ectionxcompany is~to"ireduce:cost by moving many of the administrative
functions'such as billing, customer,service, accounting, regulatory reporting, and management
to the corporate level. As`Recology streamlines its Ashland operations, the City should reassess
the admimstrative costs to ensure the costs are comparable to other similar companies and
operations.
Conclusion and Recommendations
The residential collection system utilized by Ashland Sanitary is a hybrid of roll carts interwoven
with an antiquated manual can and bag operation that yields a very low level of productivity.
Commercial customers are limited to a maximum 2 yard container for waste and recycling that
requires frequent collection. Add in a comingled recycling roll cart collection program and
duplicative recycling depot and it is easy to understand why rates will continue to increase for
the foreseeable future. The current waste management system has evolved over the last twenty
years with no specific objective; the result is a piecemeal of collection methods that will require
perpetual rate increases to maintain the current levels of service.
' Presentation to Ashland City Council by Michael J. Sangiacomo on October 6, 2009.
ff ssociates Page 18
City of Ashland 0
Solid Waste Rate Review Draft Report ;066M]b.
The City of Ashland not only has the question of rate increases to consider, but what type of
waste management system will provide expected levels of service with stable and predictable
collection rates. The City needs to determine what mixture of services it is willing to pay for over
the next 5 to 10 years as the status quo is too expensive and has not adapted to the changing
technologies and equipment for improved efficiencies. Ashland has a responsive partner in
Recology and needs to capitalize on their experience and willingness to update the city's waste
management system.
One of the overall policy questions that require attention is how to fund services. The current
rate structure generates high margins for commercial customers,to offset the losses incurred by
r a
residential collection. In the interim, an additional increase of.apptoximately 7 to 8% will be
needed to maintain the current level of service.
The following are a few of the topics that require discussion and direction from City Council:
1. Waste collection systems (automated collection with roll carts, for example)
2. Level of services to be provided (cart/ containers / recycling Pother services)
3. Value of the Recycling Depot with i c easing recycling collect on services
4. Compliance with ORS 459A (Recycling Statute)
AIWA
5. Cost of service rates or continued subsidy of residential rates by commercial rates
6. Operating margin 7. Allowable costs
Next steps for the City of Ashland:
f ~
• Short term -
o Increasecollection rates
z
o Commence the,planning.process forimproved waste and recycling services
• Long t re ~M5
o Develop a solid waste management;systemfnr the City
o Approve and'implemenba responsive system
(Amssociates Page 19
J
Appendix - Financial Summaries
Figure 1 - Ashland Sanitary Adjusted Financial Results
October 1 to September 30, 2011
Tclel Waate
Re Ntlenlial Sg 6omme rdrl SrNU afbrynin9 Gma
8c110 Waste Rryclln9 YmO Sr. h9oIlE Waste liryelinp bop EW. ColMCilon McEiul Weete RryM Center Totals
Collection a Sere %wnws 1,1p3,M] 6.595 1",197 1.11L11p ,.639 323,603 UMI a,aW 31,116 28",151
{dJY %n..e %I!C %!e ftlletl %Jfv fJli
uren were i
Gsposel/NOws.me &"4244 31 s,1a 3.6 ;tOB 1% 21,780 11% ,1,525 s2% 0 0% 105.s36 4z96 Tb,Mp m.w3 ax 0 G% T82,6it
I .,a,eme 337,0. 56% 118,, 8006 81% 110,x51 25% 110 4" 71% 91,926 m% M.s 101. 4% 103,4M 41% N7M
Ruck&Pome 141,3[5 1516 49.762 29% 37.W7 N. 16.255 6% 45,200 36% $5645 14% M.250 4W 2% 2],939 11% no.,
6Awm4&pme SM 1% 2035 1% 1537 1% 1,973 . I'M 1% 1457 1% 14,649 10 0% 1.142 OM 15,BY
pM..,bptme 126 0% M . M M 43 0% 41 O% M me 31 4 0% 25 0% 300
It[rse Fees w,7. e% 0 f/b 0 M Y.634 11% 0 a% 19.057 142 1,am t% 0 0% 14.857
Col... costs .1.9 1m/. 1mm3 .,,n, I.,0Q 140" 109.1. 15.. I3 tma
%a9u %a9u %ncu
SAW.,mnl&Pome 57.181 2M6 51,4. 5% 12,152 1896 120,6 1,426 21% 954 85% 131,.0
cc-.Sv:e&Pome m% n.CFA 5% ,.130 m% 153,3 1,548 a% 0 0% 159.6,
S,xwWe ammW 74,nI 2.6 116,7. 11% 16.891 25% S4 zIM 31% 0 M6 210,SSE
plnraMMM &iwen 73.sm 118,413 11% 1455, 27% 210, 1m1 4m 5% 212.1
OMYea coals ofL rmbm 3..fp8 9".614 0xi M.M 9}93 10,001 "9.7m
lewnues 1J4, 139 11.017 32.605 2.M.76S 29.650 21,145 28",751
Ma %n %m %a %a
"IectI.
C,m. lnpCwts .5.8.993 2.6 ~COm/flN% 301573 29% ccY/Rav% 105.5Y 33% 746.099 15,932 0 0% 787,591
Cdrect S."3 M pre+ 2 % .614 33% I .C.. 69% 148,1. 49% 1359.100 16M 53% 132 5x0 1,547.597
IMOen Oe.ata ol of CperNbm 2. .6m 2116 .1 Sme COL 23% M 338.814 2816 I 6aICOA 39% .,B" 21% .2894 6.8. 9% m. 4716 1% 709
T.W -l 11,,3]1 1,009,475 nI.375 2.0.1. 4J,M ic{. 3,024,1"
Less UWtlbwa0% Co.. 0 0% 0 M6 0 0% 0 M6 0 0% 0
Nlowetl Ceala I'M MI 1009,475 21,375 2.6,181 43.613 142.500 304,4"
Income ]Fawn,-Mlowet&p.) -156,191 145,542 1,2W -p42S -13633 -121399 -14,657
Cgerallnp MV9ln ]]244,4/livl -t1 M% 12]1% 0..% -0 A6.3PA 4701" d.0
10
Figure 2 - Ashland Sanitary Projected Finn ial Results
For the Current Fiscal Year October 1 to September 30, 2012
t/A\
v
Resdentiel Service Com erci9l Service \ Drop Box Medical Waste Rerycle Center Grand
SeIIE Wn+a Ibry<Iln9 YnO CeErls SaIkWy PscIrcn9 \ TOta
%eM %v Nm Y,arm 116.70 %eM %e 4m Yebn %e Rm
WSerr Pkleer were seeT Per, ~ rtersest IisT Pk)es,
Cclle<ibna urvke Revenues 1241.101 4M 3,550 -300% 109512 96% 111QN1 53%~,]7)' -306% 33],SN\ N.\e. 31A. 56% 21.113 00% 2,09x,115
Gred COSts
pspossl I prone s Ing Prior ee '15122 0691 21100 0.0% 21700 0 \15]3 00% 0 195.538 0.0% 20.932 00% 0 ]0],031
Lator se 1.M9 014 36% 2. 14 9 II % 06,053 35%%~Re]g5 3.5% 130.92 35% 35,188 35% 10518 3.5% 124,]35 32% 1031899
Trmk 5,., UFS,,orpense 1fi2353 % •v3,16, 101 13 6.88% 33.568 134% 67313 10% '0,801 -13 30,888 -13.1% ',501 -134% 2d 208 -134% 133,503
FpuPnem Fa pense 7.822 354
113 3% \ 1'11 33. 58% 40 %
In 24% B.3M N1 I
24% 10 33 .013 5893% 0 AMq% 0 - R
4 ft , 355
Ljc-P. fe<t Epense 124 21% e5 33% Y M N J016
.t .1 23%' 42 2<% 31% , 0c% 30 e0Y 357
ttenssn Ee,]e3 a.0% 0 50525 oa% +p On 0C%
. 1<33 00% 0 113,670
cplkrlon Costs seam test 390 wess ~za,eee// tao.tu J +ss,zas 15s+9 12o.9en 1,e1:.070
1.%n.'ermn+&pen58 57]]5 1.2% 5 231 521M 11% 12,324 1.3% 1.1 1.3% 3,603 1P6 133,273
AEmn.e.. Er,tc- 82,001 3.3% 51803 33% 20,]91 33% 1,599 3.3% 0 15992,
Curryrste MmSeed 71771 00% 1167" ic6% 10,N1 00% 2.1.5 0.0% 0 210505
.or Mr0uE blpcnc. .,770 131% 1MN9\ 106% 15.242 -134% 1.555 -136% ,86 13% 168,565
In04etl C set. el(be,rtbN 219.116 \N~ 66,1]0 0,]24 10,124 69224]
1
.-nu.. 13851]9 ;g.73. ~ 3]],5N 31529 21115 3,995,115
kartkar% eeesY x7060% 3nrY
Gsposs11 Processing Costs 336993 000% 3015]3-0.0% 105,538 OMb 20,932 Oft 0 ]8],031
CO.= Cost. 924356 59% 4U 021 325 155205 48% 15,519 -33% 130.909 -1.2% 1.613,070
AfiOetl Cost. of OperNbne 2]9,118 -2.3% 330130 -26% 68.178 23% fi]W 26% +0,+29 1.3% 69226]
Tokl Cost 524 d6d 1,035.]30 321,919 13,15] 111,098 3.071.
Lev. Untllaw Wk Cost. 0 0 0 0 0 0
AN-1,b Caste 1,5241& 1,035]30 338.9+9 4],15] 101093 3,071.300
income(Revenue - Allmed Eap.I -139,205 -106% 1040'!8 26,% 10605 -11620 -1+9,953 -]6253
CperYln9 Pegs, lN-en, I IYV) -10.08% 15.09% 33.% 36].29% .355
v
tt
Figure 3 -Ashland Sanitary Projected Financial Results for Solid Waste & Recycling Collection Operations
For the Current Fiscal Year October 1 to September 30, 2012
Total warts
Residential Service y Commercial Service Drop Box 8 Recycling
Solid Waste Recycling Yard Debris Soli) Yyaste fbryding Collection
%a nom %4fram from x4fram %aeom
Pbnn Harrier lab>er PMrwr pas, a Klo Wei
Collection & Service r venues 1,241,101 4.2% 3,566 300% 140512 96% 11]0,361 53% 49,3 -30.0% 33],514 48% 2,9/3,441
Ursa Costs
Disposal /Processing &pense 315,112 00% 2,10 00%21 760 00%2 ]3 00% -.0 105,536 0.0% 746,099
Leber&pense W,014 36% 123205 36% 88053 35% X28]95 35% 120482 3.5% 95,106 35% 914,]45
Truck &pense 182,383 14,!M 53101 88%'U, M 13.4% 5]212 186% 39,601 -134% Wallis -13.4% 3]5,]81
SWipmnt&peme ],822 354% 09]9 3412%200~1Ti.3%` 611 33.6% 0 -1000% low 589.3% 32,355
Omer Carl &pense 129 24% 45 23% 34 3 0%
61,2.3% 42 2.4% 33 3.1% 32]
License peso cam 00% 0 59520= 0.0% 18,05] 0.096 1,12,38,1
Collection Cask 5 ,111 105,390 136855 f5 X243 a00 160,135 155,205 1,,105,582
hUnegerrtnl &pense 5],A4 12% ~95 221 52;106 1.2% 12,304 1.3% 112,184
Adiminar,e&pense 028,11 33% 50893 33% 20,]91 3.316 156,325
Corpwale O.erMSd 74,M 00% 116]00 0,096 16,841 00% 2118,400
Other O.erhead&penses 83]32 134% 1c8509 -10.096 16,242 -12.4% 106,523
Indirect Costs of Operations 27/9,118 330,136 66,170 675,432
Revenues 1',@3&5,1]9 1219,]30 33],524 2,962.441
Im..,.x un.asax mv.x
Disposal /Processing Costs 33800% 301,5]3 00% 105,536 0.0% ]48,099
Collection COSta 80835959% 404,021 22% 155,205 4.8% 1,485,592
Indirect Costs of Operations 2]9,118 23% M,IW -2.8% 66,178 -22% 6]5,432
Total Cost 1,524,464 1,035,]30 326,919 2,88],113
Les. Unallowable Costa 0 0 0
Allowable Costs 1,524,064 1,035)30 38,919 2,88],113
Income(~wmue - Allowed &p.) -139,285 108% 104,008 26.4% 10,605 55,328
Operating Margin (Income I%v) -10.06% 15.09% 3.14% 1.81
12
r. 1y
Recology.
Ashland Sanitary Service
WASTE ZERO
Dave Kanner
City Administrator
20 E. Main Street
Ashland, OR 97520 October 3, 2012
Dear Dave,
Thank you for taking the time to meet with us yesterday to discuss the Rate Review Draft Report. We are in agreement
with the major points in this report, specifically the rate increase we requested is warranted and that it would be
beneficial in the long run to make changes to modernize our operation, allow for efficient route collections, and
promote rate stability. We also agree that while the Recycling Center provides a value to the many users of the facility,
it is costly to the collection service subscribers who subsidize its operation. Therefore, it is a policy decision whether we
should continue to operate the Recycling Center as part of the services we provide.
Carting the City and possibly automating the routes is one way to modernize the collection operation. This would
require significant capital investment on our part, approximately $250,000 for the carts and an additional $300,000 for
one truck. There would also be some challenges to overcome to allow our trucks access to the carts. Customers would
be required to place their carts at the curb. For those customers who do not bring their carts to the curb there would
need to be an additional fee based on the distance from the curb. Because yellow bags and customer provided stickered
cans cannot be serviced with the automated arms, these programs would need to be eliminated. These programs could
be replaced with a 20 gallon cart service for those who produce less trash.
We agree that there should be some changes made to the contract as these upgrades would require significant
investment and the cost savings mentioned in the report would be dependent on how the barriers to automation are
met. The current contract period ends in 2018 which does not allow sufficient time to amortize the carts and equipment
over a reasonable life. We would recommend extending the term of the contract to 10 years or more to allow for longer
amortization of capital required. In addition, we should negotiate a defined rate methodology. We would recommend a
methodology that would allow a CPI escalator as long as we are operating within a range of operating ratios. If the
operating ratio falls outside the range a detailed application would be required.
Please send us the recommendations you will be presenting at the study session in advance so that we can be ready to
answer any questions. We look forward to meeting with you again to discuss these issues.
Sincerely,
en L bio
eneral Manager
'Y
CC: Ed Farewell
Tom Norris
170 Oak Street I Ashland. OR 97520-180411: 541.482.1471 1 recologyashiandsanitaryservice.com
E
ORDINANC NO.
I
ORDINANCE GRANTING A FRANCHISE FOR THE COLLECTION OF SOLID WASTE, REFUSE
D MEDICAL WASTE WITHIN THE CITY OF ASHLAND, JACKSON COUNTY, OREGON TO
ASHLAND SANITARY SERVICE, INC. FOR THE PERIOD FROM APRIL 1, 1990, TO MARCH
31, 2005; REGULATING THE DISPOSITION OF SOLID WASTE IN SAID CITY; PROVIDING
A PENALTY FOR THE VIOLATION HEREOF; REPEALING ORDINANCE NO. 2069 AND ANY
AMENDMENTS THERETO; AND DECLARING AN EMERGENCY.
I
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. That there is hereby granted to Ashland Sanitary Service, Inc.
the exclusive right, franchise and privilege of collecting, gathering and
hauling over the streets of the City of Ashland, Jackson County, Oregon,
all solid waste, refuse and medical waste accumulating in said City, with
the right to exact charges and collect from persons, firms or corporations
served as specifically hereinafter set forth, for the period from April 1,
1990, to March 31, 2005.
I
SECTION 2. That the term "solid waste" as used herein shall be construed
to mean every refuse accumulation of animal, fruit or vegetable matter,
liquid or otherwise, ashes, tin cans, bottles, glass, medical waste, and
discarded articles of similar matter.
SECTION 3. That it is hereby made the duty of every person, firm or
corporation within the limits of the City of Ashland to cause their solid
waste accumulation to be removed through the year within the times
specified as follows:
l) Residences and apartments - once every seven (7) days.
(2) Hotels, restaurants, boarding houses, meat markets, grocery stores
and other places where meats, fruits and vegetables are kept, sold
or offered for sale, or where cooking is done for the public -
twice every seven (7) days.
(3) Medical facilities - within seventy-two (72) hours of disposal.
(4) All other places - once every seven (7) days.
SECTION 4. That every person, firm or corporation having garbage.or
medical waste for disposition, shall place all such matter in containers
which shall be water-tight and fly-proof, and be placed in a location
convenient for the collectors.
SECTION 5. That it shall be unlawful for. any other person, firm or
corporation, excepting citizens hauling their own solid waste,.and
excepting the City of Ashland when the same is functioning in a'
governmental capacity hauling its own solid waste or refuse, to collect,
gather and/or haul solid waste or refuse over the streets of the City of
Ashland, Jackson County, Oregon, during the term of this franchise.
SECTION 6. That all vehicles used by the said Ashland Sanitary Service,
Inc. in the transportation of solid waste through the streets of the City
Ashland shall be so constructed and equipped so as to be water-tight and
.ly-proof, and which comply with all state laws and rules, regulations and
requirements of the State of Oregon.
SECTION 7. Any person, firm or corporation, whether as principal agent,
employee or otherwise, violating or causing the violation of any of the
ovisions of this Ordinance, shall have committed an infraction, and upon
nviction thereof is punishable as prescribed in Section 1.08.020 of the
Ashland Municipal Code'. Such a person, firm or corporation is guilty of a
separate violation for each and every day during any portion of which any
violation of this Ordinance is committed or continued by such person, firm
or corporation.
SECTION 8. The fees to be charged and collected, both as to residential
and commercial customers, shall be in the amounts as hereafter approved by
resolution of the City Council and which have been.requested by Ashland
Sanitary Service, Inc.
SECTION 9. Ashland Sanitary Service, Inc. shall have the right each year
to present to the City Council a petition for an increase in rates based .
upon an increase in the cost of rendering solid waste disposal services to
the citizens of the City of Ashland. The'same right shall exist where the
regulations are changed concerning the operation of the landfill so as to
cause an increase in capital outlay or operational expense of Ashland
Sanitary Service, Inc., and this petition may be made at any time. In the
event the parties cannot agree on the amount of a rate increase, if any,
the matter shall be submitted to a board of arbitrators, one being selected
by each party and a third by the first two arbitrators. The decision of
the majority of the board shall be final and binding on the parties. The
arbitrators shall be experienced people familiar with standard business
practices. The third arbitrator shall be a Certified Public Accountant
certified to audit municipal accounts. The arbitrators shall not be
sidents of the area served by Ashland Sanitary Service, Inc. In the
..rent costs should decrease, the city Council shall have the same right to
request a decrease in rates under the foregoing procedure.
SECTION 10. In consideration for the granting of this exclusive franchise,
franchise holders shall pay to the City of Ashland for and as a franchise
fee,.the sum of five percent (5%) of the franchise holder's gross receipts
from revenues received for the services rendered to customers situated
within the corporate limits of the City of Ashland.
Said payments shall be made monthly, no later than the 20th day of the
month following the month of service upon which the charge is predicated.
Said payment shall be accompanied by a statement, subscribed to by an
authorized representative of franchise holder, certifying the gross
revenue.
The City of Ashland reserves the right to perform such audits as it may
from time to time desire for the sole purpose of ascertaining the accuracy
and propriety of revenue representations. Said audits shall be done at
reasonable times, and at the cost of the City.of Ashland.
SECTION 11. Ashland Sanitary"Service, Inc. shall indemnify, defend and
hold harmless the City of Ashland, its officials and employees, from any
claim arising from the performance of the service provided under the terms
of this franchise; and further, shall maintain comprehensive general
liability insurance in amounts not less than the statutory limits of tort
Lability of Oregon Municipalities as set forth in OR5 30.270, and shall
provide certificates of said insurance to the City Finance Director.
i
I
I
I
SECTION 12. The city reserves the right to grant franchises for collecting
goods for recycling to other individuals, firms or corporations. If the
''ty Council determines that it wishes to grant a franchise for such
.-vice, it shall first submit any proposal to Ashland Sanitary Service,
Inc. which shall have the first right of refusal of said franchise.
SECTION 13. That in the event the said Ashland Sanitary Service, Inc.
shall violate any of the agreements by it to be performed hereunder, then
and in that event the City Council, upon giving the franchise holder and
surety company thirty (30) days written notice of an alleged violation, in
order that said franchise holder or surety may have an opportunity to
explain or refute the same, may terminate this franchise and all rights of
the franchise holders shall cease and its bond in the sum of Twenty-five
Thousand Dollars ($25,000.00) shall be forfeited. The franchise holder is
required to provide to the City of Ashland a bond in the sum of $25,000.00
securing its faithful performance of this franchise renewable annually, and
a certificate of continuance filed with the City.
SECTION 14. That Ordinance No. 2069 as amended and all other ordinances in
conflict herewith are hereby repealed.
SECTION 15. The franchise holder agrees that its rights hereunder may not
be assigned, sold, pledged or given in any manner to a third party, nor may
any stock of the franchise holder corporation be sold, pledged or assigned
in any manner without the consent of the City of Ashland first having been
received, which consent shall not be unreasonably withheld. In the event
there is a dispute as to any sale or transfer under this provision, then
the matter shall be settled in the manner as provided for arbitration in
,ction 9 hereof.
{
SECTION 16. That inasmuch as the current franchise ordinance expired on
April 1, 1990, the public interest requires that an emergency be declared,
and this ordinance shall be effective upon its second reading and approval
by the Mayor.
The foregoing ordinance was first read at a regular meeting of the City
Council on the ! r! day of June, 1990, and DULY PASSED and ADOPTED this
day of 1990.
}
Nan E. Franklin
City Recorder
SIGNED and APPROVED this day of 1990x`
Catherine M. Golden
Mayor
I
ORDINANCE NO.
AN ORDINANCE AMENDING SECTION ONE OF
ORDINANCE 2582 TO EXTEND THE ERANORI.SE TERM
FOR ASHLAND SANITARY SERVICE TO THE YEAR
2018.
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. Section one of ordinance 2582 adopted on June 19, 1990, is amended to
read:
That there is hereby granted to Ashland Sanitary Service, Inc., the
exclusive right, franks and privilege of collecting, gathering, and
hauling over the streets of the City of Ashland, Jackson County, Oregon,
all solid waste, refuse, and medical waste accumulating in said city, with
the right to exact charges and collect from persons, firms, or corporations
served as specifically hereinafter set forth, for the period from April 1,
1990, to March 31, 2018.
The foregoing ordinance was first read by title only in accordance with Article X,
r
Section 2(C) of the City Charter on the IS~ti day of Aug us ,1998,
and duly PASSED and ADOPTED this sT day of S,ePlembe-, 1998.
Derek D. Severson,
Acting City Recorder
SIGNED and APPROVED this 2 Ad day of SePktnbcr 1998
Catherine M. Shaw, Mayor
Re iewed as to form:
tA4' 0
Paul Nolte, City Attorney L-
Page 1 -SANITARY FRANCHISE ORDINANCE GAPAUUORDwshland Semtary Franchise Ord.wpd
i I
CITY OF
ASHLAND
Council Communication
September 16, 2013, Study Session
Job Council Proposal Discussion
FROM:
Adam Hanks, Management Analyst, adam@ashland.or.us
SUMMARY
As a result of Council discussion regarding the potential formation of a local Jobs Commission at a
prior study session, the Council formally requested a proposal from The Job Council to provide
Ashland-specific workforce services, including but not limited to, a physical satellite office in Ashland.
The attached proposal provides a range of options and associated costs. Council can consider whether
the establishment of business outreach and satellite jobseeker services with The Job Council meets the
intended Council objective.
BACKGROUND AND POLICY IMPLICATIONS:
In the 2013-15 Council goal setting process, an objective was included to form a local Jobs
Commission to assist with a variety of workforce development related policy recommendations and
implementation activities in support of the City's Economic Development Strategy.
At the June 3, 2013, Council Study Session, staff presented Council with two sample Jobs Commission
scenarios, outlining membership representation, total members, Commission purpose and basic
meeting structure for each. Council discussion resulted in a desire to focus efforts on job creation
efforts rather than more broad economic development matters as originally envisioned with the Job
Commission concept.
The Job Council Proposal
The attached proposal prepared and submitted to Council by The Job Council Executive Director Jim
Fong, provides a summary of existing services offered regionally by The Job Council at their centers in
Grants Pass and Medford, as well as potential additional services that could be customized and
delivered in Ashland.
The proposal focuses on two elements within the overall scope of services provided throughout the
region that The Job Council feels is best suited to be customized specifically for and in the Ashland
market; - i -
1) Business Outreach
2) Satellite Jobseeker/Unemployed Worker Services
Business Outreach involves site consultations with key traded sector businesses in Ashland to identify
existing local employment needs/deficiencies, identify skill set gaps of existing and prospective
employees and to partner with local employers in finding solutions to close the gaps identified. This
would be accomplished with a Job Council led team conducting on-site meetings with 35 to 40 key
Pagel of 2
I`,
CITY OF
ASHLAND
Ashland based businesses. An expected deliverable would include a detailed report of each
consultation outlining existing job training needs, future growth needs, resource opportunities available
for solutions and identification of technical areas where resources and solutions are not currently met
within the region.
Jobseeker/Underemployed Worker Services involves bringing existing Job Council programs and
services directly into the Ashland market through the establishment of a satellite office staffed by Job
Council program providers either one half or one full day per week. Programs would need to be
developed and implemented based on identified local job seeker needs and anticipated participation
levels. The proposal table (pg 5/6) provides a comparison of existing regional services in the Grants
Pass and Medford centers with possible services for an Ashland based satellite center.
FISCAL IMPLICATIONS:
The proposal outlines estimated costs for providing several combinations of the recommended
services, which include personnel, service/supplies, transportation and administrative costs, but do not
include facility/office space costs.
- -
Item Option A Option B
Business Outreach - coordination & outreach to Ashland businesses 4 hr/week 4 hr/week
Satellite Jobseeker Services 7 to 8 hr/week 3 to 4 hr/week
Total Cost` $ 49,920 $ 33,280
STAFF RECOMMENDATION AND REQUESTED ACTION:
The proposal from The Job Council provides the background information and recommendation of
possible services that was asked of it by Council. In reviewing the materials, Staff would suggest and
recommend a new "Option C", which would include only the Business Outreach services outlined in
the proposal.
By specifically targeting the job training needs/deficiencies from the employer perspective, The Job
Council and City staff will better understand the specific needs of the job market for the City's key
traded sector businesses and will be able to more effectively provide job training services and
programs that fit those needs, both in the short and long term. Creating a more significant partnership
with local employers will also assist in recruiting for effective participation levels in potential future
services.
If Council agrees, City and Job Council staff would meet and draft a detailed contract with timelines,
partner expectations, required on-site consultations, process guidelines and final contract deliverables
for a contract amount not to exceed $15,000.
SUGGESTED MOTION:
N/A
ATTACHMENTS:
The Job Council City of Ashland Proposal
Executive Summary - 2012 Business Retention & Expansion Survey
Page 2 of 2
THE JOB COUNCIL
Proposal to the City of Ashland
IonE~.~ON.
Jobs, Workforce £t Economic Development
Rogue Workforce
Linking Jobseekers & Businesses ( Growing Skills, Businesses & Economic Vitality Partnership
HP.,
Background
This document was prepared in response to discussions between the Ashland City Council and representatives
from The Job Council / Rogue Workforce Partnership (TJC/RWP) at the June 3, 2013 Study Session. Council
members requested that TJC/RWP staff present their ideas and a proposal for better linking jobseekers to
businesses and jobs, growing the skills and success of workers, improving the success of businesses and
expanding the City's economic vitality.
Snapshot of the Ashland Labor Market
While statewide economists estimate Oregon's official unemployment rate to be 7.9%, this figure does not
include discouraged workers (who have looked for a job in the past 12 months, but are neither currently
working nor looking for work due to discouragement about theirjob prospects), or part-time workers who wish
to be employed full-time. According to State Employment Economist, Nick Beleiciks, as of June, 2013, the total
percentage of unemployed/underemployed and discouraged workers statewide rests at approximately 15.9% of
our total population (www.aualitvinfo.or~~ g). Although this information is not tracked at a local level, experts
believe that this percentage is a true reflection of jobseekers in our region and by extension, could easily be
applied to members of the Ashland community.
With an estimated population of 20,366, Ashland is home to approximately 1161 businesses that employ
approximately 7,870 employees(http://www.ashlandchamber.com/files/2013 LDB OLpdf). The top industries
that weave together the fabric of Ashland's economy are as follows:
• Educational services and, health care & social assistance (31.4%)
• Arts, entertainment and recreation & accommodation and services (14%)
• Professional, scientific & management & administrative & waste management services (13.2%)
• Retail trade (11.9%)
According to the 2007-2011 American Community Survey, nearly 60.5% (12,219) of the city's population
represents the labor force (individuals who are 16 years or older who are actively working, or seeking work).
Utilizing the statewide estimated average of total unemployed/underemployed and discouraged workers
(15.9%), an estimated 1,942 individuals are in need of a full-time job. The table below represents the 525
jobseekers that registered for employment services between 8/1/2012 and 7/31/2013 (this data typically
represents those who are collecting unemployment benefits):
Education' Level Unknown Less than HS Diploma Post- Associate's Bachelor's Total
HS or GED Secondary Degree Degree or
Education Higher
# Jobseekers 9 21 155 86 59 195 525
% 2% 4% 30% 16% 11% 37%
1
Action Plan for Boosting Ashland's Economy
1. Meet the real-time training needs of current businesses
2. Offer business-driven talent development for jobseekers
3. Strengthen the connective tissue of the local economy by forging relationships with regional partners to
support workforce and economic development
In 2012, the Ashland Chamber of Commerce's Business Expansion and Retention Program (BR&E) conducted
interviews with local businesses and identified a series of "asks." Among needs identified, "more technical and
sales training, interest in sustainable business programs and practices" and "interest in deepening their
connections with regional institutions" were on the top ten list
(htta://www.ashiandchamber.com/files/2013 LDB OL.odf).
How We Can Helo
• Enhanced Business Outreach & Services
The first key element in our strategy is to expand upon our coordinated outreach efforts to Ashland
businesses. Our goal would be to identify job openings and meet aggregated workforce skill development
needs. We would focus especially on Healthcare, Advanced Manufacturing and E-Commerce/ Information
Technology companies - and particularly on those wealth-importing, traded sector businesses who sell their
goods or services outside the region. Our strong partnerships with SOREDI (Southern Oregon Regional
Economic Development Inc.), the Governor's Regional Solutions Center, Sustainable Valley Technology
Group, and the Small Business Development Center offer a unique blend of support for business
engagement and growth. We would also enhance our partnership with the Ashland Chamber of Commerce
and the City of Ashland's Economic Development staff.
As part of normal outreach or otherjoint staffing efforts with these partners, those businesses who identify
a need or interest in addressing workforce-related issue would be contacted for a more in-depth
appointment. Job openings, top entry-level position needs & skill requirements would be identified and a
Strategic Workforce Plan for that business would be created. From this key business intelligence gathering
process, we would then link these workforce skill needs with the services we provide to jobseekers and
underemployed workers, as well to our regional efforts to improve school-to-work readiness of students
coming through the K-20 educational system. Our goal over time is for businesses to have the most highly
skilled and talented workforce possible, so they can grow their capacities, business success and the region's
economic vitality.
c, • Talent & Skills Development Services forlobseekers & Underemployed Workers
Through the region's WorkSource Oregon One-Stop Centers, The Job Council offers foundational workforce
skills training, career coaching, competency-based instruction, on-the-job training subsidies and limited
scholarships for individuals to gain vocational training (at Rogue Community College and other training
providers). We work intensively to connect these skill enhancement services to the real-time skills needed
by our region's businesses. These skill enhancements can lead to betterjobs and career paths to higher-
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wage occupations in high-demand industries. Underemployed workers seeking career job and advancement
can also benefit significantly from these services.
Although these services are open to all residents in Jackson and Josephine Counties, Ashland residents
access these services on a very limited basis. From the Ashland residents that we do serve, the suggested
reasoning behind the sparse presence of "Ashlanders" is due to the unwillingness to make the drive into
Medford.
Possible Services to Jobseekers & Underemployed Workers in Ashland
A strategy for improving access to services to Ashland residents could include the following:
A. Provide satellite services in Ashland for either 3-4 or 7-8 hours /week, depending on the City's
desired investment level.
B. Partner with the City of Ashland or the Ashland Library to provide a no cost location for these
services
C. Explore enhanced partnership with SOU's Career Development services; link capacities where
appropriate and feasible
D. Publicize the availability of Ashland-based services, particularly promoting the link to jobs, skill-
building, and career pathway opportunities
E. Through these satellite services, create a conduit and encourage Ashland residents to access the full
array of career development services at the One-Stop Center in Medford and other training
providers.
F. Track the success, demographics and skill capacities of the jobseekers and underemployed workers
served. Adopt a multi-year, phased approach that will:
Test the actual demand for satellite services
Adapt services and capacities to meet the actual needs of jobseeker/underemployed worker
and businesses
Provide regular reports to the Ashland City Council in order for them to determine the value,
return on investment and on-going viability for investing in these services
Attachment A provides a list of service options under this scenario and provides a Comparison of One-Stop
Services & Possible Ashland Satellite Services. Specific satellite services could be chosen by the City Council
from available options in the right hand column.
Leveraging Education & Workforce Partnerships
We have very close partnerships with regional education and workforce partners, including:
• K-12 school districts Oregon Employment Department
• Rogue Community College Oregon Department of Human Services
• Southern Oregon University Oregon Vocational Rehabilitation Services
• Oregon Institute of Technology Southern Oregon Goodwill Industries
• Oregon Bureau of Labor & Industries U.S. Veterans Administration
• Oregon Commission for the Blind Easter Seals (Homeless Veterans services)
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Through these partnerships, we are able to provide access to coordinated training and workforce
development resources that jobseekers and Ashland businesses need and have been asking for. We will
bring with us, this full array of partners, as we work to enhance services to the residents of Ashland.
Conclusion
Our core value proposition is providing job seekers and incumbent workers with connections to jobs, and
knowledge about the skills they need to get these jobs and progress into better career pathways. Through our
extensive partnerships, and a more aligned workforce and education system, we work with businesses to grow
their available talent pool, helping to develop the requisite skills needed by workers and businesses in order to
for both to thrive and achieve economic success.
By offering enhanced services in Ashland, we would be able to meet the specific needs of Ashland residents and
businesses in a manner not currently accessible with the limited available regional resources. Attachment B
provides Estimated Cost for these services. Attachment C provides a Logic Model Showing Success Measures &
Return on Investment. We look forward to working with the City of Ashland in whatever capacity appropriate.
Thank you for the opportunity to explore better ways to serve the residents of Ashland.
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AttachmentA /aoevowodnorc•
TIiB IOn COUNCIL. partnership
Comparison of One-Stop Services 8 Possible Ashland Satellite Services - •O4 W~-• a a 66W .
The Job Council WorkSource Oregon • One-Stop Services Possible Ashland Satellite Services
1. Job Search Assistance I Career Exploration, Coaching 8 Navigation ❑ Topics would depend on demand &
• Job Club - with rotating job search/career exploration topics focused on engaging and motivating job seekers, providing available workshop instructors
them with the key tools to be successful in landing a job in today's dynamic job market
• Creating a Competitive Job Search Portfolio - Resume, Cover Letter, Moster Application, References '
• Interviewing Skills - including practice or mock interviews with feedback
• Goal-setting - Life Balance Wheel & Action Steps
• Identifying Your Transferrable Skills in Today's Job Market
• Competing in the On-line Job Market
• Career Exploration & Coaching - group & one-on-one supportfar jab seekers to identify their career options, interests &
employment goals
• Career Information System (CIS) - classes for career literacy/planning
• Navigation Support Through Other One-Stop Center Services, including but not limited to:
Assistance in I-Match Registration PowerUp Academy Trainings
Industry Sector Foundational Skills Training (see below) On-the-Job Trainings
Navigating Training Options Workshop & training scholarship application process
2. Industry Sector Foundational Skills Training
• Basic Skills - in Reading, Math & Locating Information.
Opportunity to obtain a National Career Readiness Certificate (NCRC) ❑ Would depend on enough demand
Access to NCRC/Basic Skills Lab to prepare clients for: taking the NCRC, GED preparation, or college entry
• Soft Skills - workshops that develop the critical soft skills employers seek, including, but not limited to: ❑ Topics would enough depend on
Emotional Intelligence Conflict Resolution demand & available workshop
Workplace Communication Work Ethics instructors
Meyers-Briggs Changing Negative Thinking
Enneagram Managing Stress _
Breaking Barriers -overcoming issues that impede getting a job, including criminal background, transportation, etc.
• Customer Service -Teaching job seekers the knowledge, skills, and competencies required to increase customer satisfaction.
Any employee who interacts with a customer - either an internal customer or external - is a candidate for this training. All ~3 Would depend enough demand &
employers in all industry sectors want these skills. Course content includes greeting the customer (either by phone or in instructor availability
person), questioning to understand the customer's need or problem, listening, confirming understanding, responding with
value, using positive language, eliminating jargon, concluding the phone or face-to-face interaction, dealing with angry
customers, and the importance of body language and tone of voice.
• Basic Computer Skills - keyboarding/typing, MS-Office (Word, Excel) & Outlook, Intro to Social Media, etc. ❑ Would depend on enough demand
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The Job Council WorkSource Oregon • One-Stop Services Possible Ashland Satellite Services
• Industry Recognized Technical Skills -Training modules in entry level foundational skills for specific industries, including, but
not limited to:
Healthcare - work readiness skills building and exploration in health care careers including: HIPAA Confidentiality 4 Available at Medford & GP One-Stops
Training, Introduction to Medical Terminology, CPR/First Aid Health Care, Caregiving Certification.
Manufacturing - Lock out/Tag Out, OHSA, First Aid/CPR, Mechanical & Physical Aptitude
Clerical - Hands-on, practical learning/internship environment that provides introduction to office practices & clerical
careers. Specific skills gained includes: basic keyboarding/typing, office proficiency OPAL (Office Skills Testing Software)
certificates in MS-Word, Excel, PowerPoint, 4uickBooks.
E-Commerce/Information Technology - to be developed
Service / Retail / Hospitality - to be developed
3. PowerUp Academy Trainings 4 Available at Medford & other locations
The PowerUp Academy was collaboratively created by Rogue Workforce Partnership members to meet the real-time, skill
advancement training needs for businesses in the region. Trainings are designed for currently employed workers, but are also
appropriate for jobseekers and students. Typical trainings are one-day or a half-day in length, and are a direct result of requests
from local businesses. Our multi-organization Business Outreach Team is solutions-driven and committed to excellence. New
trainings are continuously being offered in a quick, efficient manner, often meeting training needs in just a few weeks. Training
topics include, but are not limited to:
MS-Excel Basic to Advanced Meeting Facilitation
MS-Word Leadership & Supervision
Crystal Reports Software First Aid/CPR
Solid Works Software Certified Medication Aide
Forklift Train-the-Trainer
4. Back to Work Oregon / On-the-Job Training Subsidies I JOBS Plus I Internships 4 Available at Medford & GP One-Stops
On-the-Job Training subsidies for businesses who hire new employees. Employer reimbursement up to $2500/job.
JOBS Plus reimburses up to $7500 for Oregon Department of Human Services TANF clients
Internships provide-Ahe opportunity to develop relevant occupation specific skills so that jobseekers have some of the
experience employers seek in entry-level candidates
5. Individual Training Scholarships 4 Available at Medford & GP One-Stops
Training Scholarships for WIA (Workforce Investment Act) eligible vocational skills training certificates or programs.
6. Combined & Customized Training Packages 4 Available at Medford & GP One-Stops
Any and all of the above training services can be combined and customized to meet individual jobseeker needs. This may include,
but is not limited to:
Creating a service package that provides OJT Employer/Employee access to continued training resources through Power-Up,
Soft Skills, Basic Technology or other one-stop training services
• Packaging other training described above in any manner that best meets the customized proficiency and skill development
needs ofjobseekers
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Attachment B
Estimated Cost
An approximate cost for services outlined in this proposal could range as follows:
Item Option A Option B
Business Outreach - coordination & outreach to Ashland businesses 4 hr/week 4 hr/week
Satellite Jobseeker Services 7 to 8 hr/week 3 to 4 hr/week
Total Cost* $ 49,920 $ 33,280
* Includes personnel, service & supplies, transportation & administrative costs.
Assumes no facility cost (assumes provided by the City of Ashland, or Ashland Library, etc.). Any unanticipated facility cost would need to be added to the total cost.
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Logic Model Showing Success Measures ft Return on Investment
City of Ashland Leveraged Resources / Outputs Outcomes Strategic Goals/Objectives
Investments Co-Investments
Business Outreach Coordinated business outreach & 35 to 40 Businesses engaged from Strategic Workforce Plan - Begins process of aggregating business job
4 hr/week referrals in partnership with Oct'13 to June'14 developed for a minimum openings I workforce skills needs and linking this
SOREDI, Ashland Chamber of of 75% of businesses real-time labor market demand to:
Commerce & City of Ashland - engaged - job openings, Satellite & One-Stop Center services/training
Economic Development top entry-level position for job seekers
needs & skill requirements Career Related Education Experiences at
are identified High School & higher education levels
Business get more referral - Down payment on long-term goal of providing
of entry level jobseekers businesses with a sense of the talent pool
with improved I requisite available to them in their business operations &
skills needed for the job expansion plans
Satellite Jobseeked , Partner with SOU, RCC, and Satellite center will be open to serve We will track: ~ Jobseekers get jobs
Underemployed other partners to leverage unemployed & underemployed jobseekers # of obseekers who et
Worker Services 1 9 kers improve their skills ti employability
services & resources. Work 3-4 or 7 -8 hr/week. We will track/conduct: jobs - in Ashland & other (improvements in basic, foundational &
3 to 4 hr/week or particularly with SOU's Career Total # of jobseekers served (will depend locales occupation /industry specific skills
7 to 8 hr/week Preparation Coordinator. upon outreach efforts & interest) # of underemployed - Businesses are able to hire more skilled &
Coordination with Oregon # jobseekers served who get prioritized workers who get better talented workers who can help them grow &
Department of Human Services support & referrals to appropriate job jobs create more business success, as well as career
Ashland Branch & alignment of openings (indentified through business # of jobseekers, current success for workers
JOBS:Progrann services for outreach & othersources) workers or students who
TANF clients who are Ashland # of jobseekers who expand their skill obtain a National Career
residents building/training activities to One Stop Readiness Certificate
Partnership & alignment with Center in Medford or who access other # of Ashland jobseekers,
workforce agency partners training providers
Oregon Employment Department , We will conduct an outreach & media current workers or
students who improve
Oregon Vocational Rehabilitation campaign to inform Ashland residents of their skills & who become
Services available services. Track outreach efforts, more competitive in the
Southern Oregon Goodwill , Approximately 500 Unemployment job market
Industries Insurance clients will be contacted in
Oregon Commission for the partnership with Oregon Employment
Blind Department to inform them of Ashland-
Veterans Services - Easter Seals based services
& U.S. Dept. of Veterans Affairs , We will track our coordination efforts with
Bureau of Labor & Industries partner agencies/ organizations to align
Experience Works (serves older services & referrals
workers
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2012 Business Retention and Expansion Survey
Executive Summary
Ashland's Business Retention and Expansion program has been in place since 2006 when
the Ashland Chamber of Commerce and the City of Ashland first surveyed local
businesses to learn about their challenges, goals and successes in doing business in
Ashland. The program's principal objectives are to identify issues, facilitate problem
solving and increase communication between businesses, the Chamber and policymakers.
Through the BR&E survey the Chamber and the City identify business needs for expansion
in terms of workforce skills, physical space, and infrastructure. Where needed, the program
follows up on urgent local business issues, or "Red Flags," that may jeopardize the health
and/or retention of a given business. The Chamber's Rapid Response Team works with
businesses, and where necessary, local agencies and government, to assist in the resolution
of issues.
Key findings of Ashland's 2012 Business Retention and Expansion Survey are:
1. The advantages of doing business in Ashland centered on the City's quality of life,
natural and cultural assets, and its small-town feel. Disadvantages principally
related to the relatively small labor pool and its lack of specialized and technical
skills.
2. While some businesses endured hardships through the recent recession most
maintained or increased their sales.
3. Local businesses took pride in their employees, loyal customers and "weathering
the storm" during the recent recession.
4. Businesses struggled with difficulties of hiring qualified and skilled workers. Most
pointed to the need for more technical, sales and marketing training, for both
current employees and for the local workforce.
5. Over the past three years businesses reported that they increased purchases from
regional sources and increased their sales to external markets.
6. Expectations for the future were optimistic. Most businesses looked forward to
gains in employment, sales, customers and profits over the next three years.
7. Nearly half the `businesses were expecting to expand physically over the next three
years. The majority had concerns about their ability to expand in their present
location due to conditional use permits, zoning restrictions or lack of space.
8. Businesses urged a streamlining of the local land use process and felt the effort
would support future business development.
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9. Interest in sustainable business programs and practices was prevalent across
businesses.
10. Businesses were interested in deepening their connections with regional companies
and institutions, particularly with SOU, RCC and SOREDI.
The information and feedback collected through the 2012 BR&E interview will help to
clarify and refine the City of Ashland's Economic Development Strategy and to better
guide programs of the Ashland Chamber of Commerce. To the extent possible, businesses'
needs and concerns will be addressed by both the City and the Chamber, through existing
or new programs, and through informed political and community discourse.
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