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City of Moorpark MST RE SOL4P UASTi FR��eH�s�
AGENDA REPORT
TO: The Honorable City Council
FROM: John Brand, Senior Management Analys
l
DATE: November 28, 2000 (CC meeting of December 6, 2000)
SUBJECT: Extend City Solid Waste Franchise Agreements Three Years
and Annual Update of Solid Waste Collection Fees.
SUMMARY
This item, if approved, would extend the current Agreements with
the City's existing solid waste haulers for three years, as
provided for in the City Solid Waste Franchise Agreements. The
term of the current five -year Agreements expire December 31, 2000.
The time extension would allow for a continuation of service while
negotiations occur to determine the solid collection and recycling
needs of the community in the future.
Also submitted for consideration is the annual adjustment to solid
waste collection fees as specified in the Franchise Agreements
between the City and the refuse haulers. Additionally, the rate
adjustment includes an increase in the residential franchise fee by
1%. This will generate approximately $15,000 annually for the
general fund.
As proposed, the residential solid waste rate would increase 62�
per month, to $18.49. The senior citizen and super recycler rate
would increase 50� per month to $14.90. Commercial rates would
increase proportionately.
BACKGROUND
On December 20, 1995, the City Council approved exclusive franchise
agreements for commercial and residential service with GI Rubbish
and Moorpark Rubbish Disposal. The service area boundary is
generally Spring and Peach Hill Roads, with most of GI's area to
Annual Solid Waste Rate Resolution
Meeting of December 6, 2000
Page 2
the west and most of Moorpark Rubbish Control to the east of those
roads. The term of the Agreements is five years, ending December
31, 2000, with the option of a three -year extension if approved by
the City.
The Agreements provide for a specific service fee schedule and a
rate adjustment formula. Pursuant to the City's Solid Waste
Franchise Agreement with GI Rubbish and Moorpark Rubbish Disposal,
staff conducted a review of the monthly service rates for
commercial and residential solid waste collection service. The
Agreements provide for adjustments to the service fee schedule
pursuant to a specified formula that takes into account changes in
the Landfill rate, Consumer Price Index (CPI), and the City's waste
diversion efforts.
There are two (2) components used in considering an increase in
rates: the Consumer Price Index (CPI) and the Simi Valley Landfill
tipping fees. The benchmark annual Consumer Price Index (CPI) for
this purpose was 3.270. This represents 860 of the CPI for all
consumers in the Los Angeles Urbanized Area during the period
September - September, less housing. The landfill tipping fee did not
increase and there is not change in that component of the rates.
The City has an established franchise fee of 40 on residential
accounts and 80 on commercial accounts. The franchise fee is
collected by the haulers as a "pass through" and paid to the City.
The residential and commercial franchise fees combined generate
approximately $147,000 annually for the General Fund.
Lastly the City has an AB 939 fee that is collected by the haulers
and paid to the City. This pass through fee is $1.20 on residential
accounts and 8% on commercial accounts. AB 939 revenues are used by
the City to fund integrated waste management programs, particularly
recycling and other landfill diversion programs. "AB 939" stands
for Assembly Bill 939, which is formally named "The Integrated
Waste Management Act of 1989." This law is most known for
establishing the mandate on local government (cities and counties)
to divert from landfill disposal at least 500 of the solid waste
generated in the jurisdiction.
DISCUSSION
As stated earlier, the City's Solid Waste Franchise Agreements
provide for a three year extension. Staff recommends that the
Council extend the Agreement to allow the time to seek how best to
restructure and improve the solid waste collection and recycling
services to benefit the community. Among the issues and topics of
Annual Solid Waste Rate Resolution
Meeting of December 6, 2000
Page 3
on -going discussion with the franchisees are converting some or all
of the service to automated collection and making equity
adjustments to commercial rates to encourage recycling. The
complexities of these issues, combined with the shifting regulatory
atmosphere surrounding the AB 939, may make it advantageous for the
Council to exercise it's option for an extension of the Agreements
for up to three years.
Staff explored the feasibility of increasing the residential
franchise fee from 4% to 5% while asking the haulers to reduce
their base rate. The haulers base rate is the amount they keep for
operations, or the total fee less the franchise and AB 939 fees. A
residential franchise fee of 5% is the most standard rate for local
jurisdictions in California. This action makes the Moorpark
residential rates consistent with the rates paid to the haulers by
residents of Simi Valley, where the franchise fee is 5% and the
hauler base is $15.95. Staff recommends the change to a 5%
Franchise Fee.
Other options include transferring the proposed reduction in the
hauler's base rate to the City (9� per household per month) in the
form of a residential Franchise Fee increase to 4.56 %, or keeping
the Franchise Fee at 4% and reducing the rate increase by 9� per
month. (See tables below)
2001 Residential Rate Options
Status Quo $16.04 hauler base 4% FF
45% of
Residential
2000
Franchise
AB 939
2000
86%
Landfill
2001
Franchise
Same
2001
Rate Calculation
Total
Fee (4 %)
Fee
hauler
of CPI
Increase
Hauler
Fee
Fee (4 %)
AB 939
Rate
Rate
Increase
* Res.
Rate
Rate
Rcycl.
Single Family
$17.87
$0.63
$1.20
$16.04
$0.52
50.00
$16.56
$0.66
$1.20
$18.42
Service
Roll Back to 515.95 hauler base 4 %. FF
45% of
Residential
2000
Franchise
AB
Adjusted
86%
Landfill
2001
Franchise
Same
2001
Rate Calculation
Total
Fee
Fee
a
Hauler
of CPI
Increase
Hauler
Fee (4.56 %)
AB 939
Total
Rate
@ 4%
Base
Increase
* Res.
Rate
Rate
Rcycl.
Single Family
$17.87
$0.63
$1.20
$15.95
$0.52
S0.00
$16.47
$0.66
$1.20
$18.33
Service
Roll Back to $15.95 hauler base Increase FF to 4.56%
45% of
Residential
2000
Franchise
AB 939
Adjusted
86%
Landfill
2001
Franchise
Sa me
2001
Rate Calculation
Total
Fee
Fee
Hauler
of CPI
Increase
Hauler
Fee (4.56 %)
AB 939
•total
Rate
@4%
Base
Increase
* Res.
Rate
Rate
Rcycl.
Single Family
$17.87
$0.64
$1.20
$15.95
$0.52
50.00
$1647
$0.75
$1.20
$18.42
Service
Annual Solid Waste Rate Resolution
Meeting of December 6, 2000
Page 4
Roll Back to 515.95 hauler base Increase FF to 5%
45% of
Residential
2000
Franchise
AB 939
Adjusted
86%
landfill
2001
Franchise
Same
2001
Rate Calculation
Total
Fee
Fee
Hauler
of CPI
Increase
Hauler
Fee (5 %)
AB 939
Total
Rate
C 5%
Base
Increase
* Res.
Rate
Rate
Rcycl.
Single family
$17.87
$0.79
$1.20
$15.95
$0.52
$0.00
$16.47
$0.82
$1.20
$18.49
Service
In addition to the adjustment in the residential franchise fee and
the reduction on the hauler's base rate, it is time to consider the
annual cost of living adjustment specified in the Franchise
Agreements. The formula for determining an adjustment to the
monthly rates is calculated by examining two components - 860 of
the Consumer Price Index (CPI) All Items Less Shelter; and the Simi
Valley Landfill rate adjustment, less the City's diversion rate.
Below is an itemization of the rate components:
• The percentage change in the CPI from September 1999 to
September 2000, as adjusted: 3.270.
For the commercial rate, the adjusted CPI ( +3.270) will
be multiplied by the existing rates as detailed in
attachment "N'.
• The Simi Valley Landfill adjustment:
There was no landfill fee change this year. When there is
a change in the landfill rates, the Franchise Agreement
provides for a pass- through of 450 of any increase in the
hauler tipping fee at the Landfill. The Landfill
adjustment component of the rate formula is further
offset by the City's AB 939 diversion rate.
The rate for commercial franchised haulers is $38.23 per
ton for 2000. (The self haul rate is slightly higher,
$38.58 per ton, with a $15.05 minimum load price.)
Therefore, the formula accounting for a proposed Landfill
rate adjustment is not applicable and is provided only
for information.
Combining the factors - reduced hauler base, franchise fee,
adjusted CPI 3.270, and no landfill increase, the change proposed
is an increase of $0.62 per household per month for regular
service. The proposed Senior /Super Recycler discounted service
increase is $0.50 per month. Attachment "A" itemizes the proposed
monthly residential and commercial rates.
Annual Solid Waste Rate Resolution
Meeting of December 6, 2000
Page 5
The City Council is therefore being asked to consider increasing
the monthly residential rate by 62C, increasing the residential
Senior /Super Recycler discounted rate by 50�, and increasing the
commercial bin rates by the amounts specified in attachment "A," as
described in the following report. The increase amounts include the
annual cost of living adjustment, and a small increase in the
franchise fees. By agreeing to the adjusted hauler base, the
haulers are absorbing half the cost of an increase in the franchise
fee for residential service from 4% to 50. This will generate
approximately $15,000 in additional revenue for the City General
Fund. No increase is proposed to the AB 939 fee portion of the
rates ($1.20 for residential AB 939 fees; $1.14 for Senior & Super
Recycler AB 939 fees; or for the 8% from commercial service
franchise and AB 939 fees). It is proposed that the new rates be
effective on January 1, 2001.
STAFF RECO14MNDATION (Roll Call Vote)
1. Approve an extension of the City's Franchise Agreements with
Moorpark Rubbish Disposal and GI Industries for up to three
years.
2. Authorize the City Manager to execute Amendments to the Solid
Waste Franchise Agreements changing the residential franchise
fee rate from 4% to 50.
3. Approve the annual solid waste fee adjustment with the City of
Moorpark Franchise Haulers, as show in Attachment "A."
4. Adopt attached Resolution No. 2000- , which extends the
term of the Franchise Agreements for three years, and updates
the 2001 Solid Waste Collection Fees, and replaces Exhibit G
of the Franchise Agreements with a new rate schedule,
effective January 1, 2001.
Attachments
eCU;x.26
RESOLUTION NO. 2000-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MOORPARK, CALIFORNIA, UPDATING SOLID WASTE
COLLECTION FEES AND RESCINDING RESOLUTION 99-
1678.
WHEREAS, it is appropriate for the City to establish fees
relative to collection and management of solid waste collection;
and
WHEREAS, the City provides residential and commercial solid
waste and recycling collection services; and
WHEREAS, on December 20, 1995, the City Council granted
exclusive franchise agreements with G.I. Rubbish and Moorpark
Rubbish Disposal for the collection, transportation, recycling, and
disposal of solid waste in residential, commercial, and industrial
areas within City limits; and
WHEREAS, the Franchise Agreements provide for adjustments to
the service fee schedule pursuant to a specified formula; and
WHEREAS, the City Council declares its intention of
maintaining reasonable rates for collection, management, and
disposal of solid waste and recyclables within the City limits; and
WHEREAS, on November 17, 1999 the City Council adopted
Resolution 99 -1678 establishing solid waste collection fees
effective January 1, 2000.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Effective January 1, 2001, the term of
exclusive franchise agreements with G.I. Rubbish and Moorpark
Rubbish Disposal for the collection, transportation, recycling, and
disposal of solid waste in residential, commercial, and industrial
areas within City limits is extended for up to a three year period
ending December 31, 2003.
SECTION 2. Effective January 1, 2001, the monthly
residential solid waste, recycling, and green waste collection rate
shall be as shown in the Exhibit Attachment "A."
SECTION 3. Effective January 1, 2001, the commercial,
industrial, and multi - family solid waste, recycling, and composting
CCQ1�9
Resolution No. 2000- 0000 Attachment "A"
Page 2
Franchise Agreement Exhibit "G"
bin collection rates shall be as shown in the Exhibit Attachment
"A."
SECTION 4. Effective, January 1, 2001, the temporary bins
and roll - off /drop box rates for solid waste, recycling, and
composting bin services shall be as shown in the Exhibit Attachment
"A
SECTION 5. Effective January 1, 2001, the annual Solid
Waste Management Fee for exemption to the required solid waste
collection service mandate shall be $24.40.
SECTION 6. The previous Exhibit G (Service Fee Schedule)
of the Franchise Agreement dated January 1, 2000, is hereby
superseded with the new Exhibit G dated January 1, 2001.
SECTION 7. This Resolution hereby rescinds Resolution 99-
1678 in its entirety.
Section 8. The City Clerk shall certify to the adoption of
the resolution and shall cause a certified resolution to be filed
in the book of original Resolutions.
PASSED AND ADOPTED this 6th day of December 2000.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
ATTACHMENTS: Attachment A, Solid Waste Fee Schedule
Franchise Agreement Exhibit "G"
U1k' 0
3e�olution No. 2000 -
Attachment "A"
Franchise Agreement
Exhibit "G"
ATTACHMENT A
SOLID WASTE SERVICE FEE SCHEDULE
SW AGREEMENT EXHIBIT G
DATED JANUARY 1, 2001
Rate Calculation
Sept-Sept CPI (less Housing): 169.20
Increase 3.8%
Adjusted: 3.27%
Simi Valley Landfill Hauler Rate: 38.23
Increase: 000
Adjusted: 0.00
City Residential Recycling Rate: 0.42%
(Single Stream
Dryers on only)
$2.95
City Commercial Recycling Rate: 0.10%
2001 Residential Rates
1 The monthly residential solid waste, recycling, and yard waste collection rates effective January 1, 2001:
2 One Time Move INMove Out Service Rate: $1500
3 Return Check Charge: $15.00
4 Additional Bulky Item Pick Up $25.00
(After one free pickup of two items each year)
5 Two (2) Extra Containers Pick Up: $5.00
2001 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and mule- family solid waste, recycling, and
composting bin collection rates, effective January 1, 2001:
90% of
Commercial Discards 2000 86% of landfill
Rate Calculation Base Rate CPI Increase
' Coml
Rcycl
A. One (1) 1.5 cubic vard bin with following Dickuos Der week
im
2000 RATE
CPI
LF
2001
RATE
1 x week
45% of
$2.95
$0.00
$9331
Residential
2000
Franchise
AB 939
2000
Adjusted
86%
Landfill
2001
Franchise
Same
2001
Rate Calculation
Total Rate
Fee
Fee
Hauler
Hauler
of CPI
Increase
Hauler
Fee (5 %)
AB 939
Total Rate
Rate
Base
Increase
, Res.
Rate
Rcycl.
$17.87
$0.64
$1.20
$16.04
$1595
$0.52
$0.00
$16.47
$0.82
$1.20
$18.49
Single Family Service
Up to four discard or
yard waste cans. and unlimited recycling
Senior Citizen Rate
$14.40
$0.51
$1.14
$12.75
$12.69
$0.41
$0.00
$13.10
$0.66
$1.14
$14.90
Limit two discard cans
Super Recycler Rate
$14.40
$0.51
$1.14
$12.75
$12.69
$041
$0.00
$13.10
$0.66
$1.14
$14.90
Limit one 32 gallon
discard can
2 One Time Move INMove Out Service Rate: $1500
3 Return Check Charge: $15.00
4 Additional Bulky Item Pick Up $25.00
(After one free pickup of two items each year)
5 Two (2) Extra Containers Pick Up: $5.00
2001 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and mule- family solid waste, recycling, and
composting bin collection rates, effective January 1, 2001:
90% of
Commercial Discards 2000 86% of landfill
Rate Calculation Base Rate CPI Increase
' Coml
Rcycl
A. One (1) 1.5 cubic vard bin with following Dickuos Der week
im
Noncontract: $34.83 $114 $0.00 $35.97
Page 1
J
2000 RATE
CPI
LF
2001
RATE
1 x week
$90.36
$2.95
$0.00
$9331
2 x week
$157.04
$5.13
$0.00
$162.17
3 x week
$223.75
$7.31
$0.00
$231.06
4 x week
5 x week
Not available
6 x week
Noncontract: $34.83 $114 $0.00 $35.97
Page 1
J
Resolution No. 2000 -
Attachment "A"
Franchise Agreement
Exhibit "G"
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 1. 2 X weekly pickup rate
90% of
Commercial Discards 2000 86% of Landfill
Rate Calculation Base Rate CPI Increase
•Coml
Rcycl
B. One (1) 3.0 cubic yard bin with following pickups per week:
F-
1 x week
2000 RATE
CPI
LF
2001
RATE
$101.53
$3.32
$0.00
$104.85
2 x week
$179.40
$5.86
$0.00
$185.26
3 x week
$257.28
$8.41
$0.00
$265.69
4 x week
$33515
$10.95
$0.00
$346.10
5 x week
$413.01
$13.50
$0.00
$426.51
6 x week
$490.89
$16.04
$0.00
$506.93
Noncontract: S40.44 $1.32 $0.00 $4176
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
2001 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and multi- family solid waste, recycling, and
composting bin collection rates, effective January 1, 2001
90% of
Commercial Discards 2000 86Y° of Landfill
CPI Increase
Rate Calculation Base Rate
• Coml
Rcycl
C. One (1) 4.0 cubic yard bin with the following pickups per week:
1 x week
2000 RATE
I CPI
LF
2001
RATE
$112.69
$3.68
$0.00
$116.37
2 x week
$201.69
$6.59
$0.00
$208.28
3 x week
$290.72
$9.50
$0.00
$300.22
4 x week
$379.75
$12.41
$0.00
$392.16
5 x week
$468.76
$15.32
$0.00
$484.08
6 x week
$557.79
$18.23
$0.00
$576.02
Noncontract: $46.05 $1.50 $0.00 $47.55
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
C11--" ,, r)
Page 2
Resolution No. 2000-
Attachment "A"
F_ancnise Agreement
Exhibit "G"
Commercial Recycling/Composting Bin Rates
Commercial RecyclableslCompostables 2000 86% of
Rate Calculation Base Rate CPI
IiE
A Onp 111 1 5 ruhir vard bin with following oickuos oer week:
1 x week
2000 RATE
CPI
LF
2001
RATE
$44.42
$1.45
$0.00
$45.87
2 x week
$88.85
$2.90
$0.00
$91.76
3 x week
$133.26
$4.35
$000
$137.61
4 x week
$177.67
$5.81
$0.00
$183.48
5 x week
$222.10
$7.26
$0.00
$22936
6 x week
$266.51
$8.71
$0.00
$275.22
Noncontract: $14.66 $0.48 $0.00 $15.14
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
2001 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and multi - family solid waste, recycling, and
composting bin collection rates, effective January 1, 2001:
B. One (1) 3.0 cubic yard bin with following pickups per week:
Commercial Recyclables /Compostables 2000 86% of
Rate Calculation Base Rate CPI
3
F,
1 x week
2000 RATE
CPI
LF
2001
RATE
$111.06
$3.63
$0.00
$114.69
2 x week
$166.57
$5.44
$0.00
$172.01
3 x week
$222.10
$7.26
$0.00
$229.36
4 x week
$277.62
$9.07
$0.00
$286.69
5 x week
$333.15
$10.89
$000
$344.04
6 x week
1 $0.00
$0.00
$0.00
$375.00
Noncontract $18.33 $0.60 $0.00 $18.92
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
C (one r11 4 0 ruhir vard hin with follnwinn nickuos ner week'
1 x week
2000 RATE
CPI
LF
2001
RATE
$133.26
$4.35
$0.00
$137.61
2 x week
$199.87
$653
$0.00
$206.40
3 x week
$266.51
$8.71
$0.00
$275.22
4 x week
$333.15
$10.89
$0.00
$344.04
5 x week
$399.78
$1306
$000
$412.85
6 x week
$0.00
$0.00
$0.00
$500.00
Page 3
P.4solution No. 2000 -
Attachment "A"
Franchise Agreement
Exhibit "G"
Noncontract $22.33 $0.73 $0.00
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
The temporary bins and roll- off /drop box rates for solid waste, recycling
effective January 1, 2001:
$23.06
Temporary 3 Cubic Yard Bin Rate:
2000 RATE
CPI
2001 RATE
$77.74
$254
$80.28
"Hard to Service" Bin Moving Rate:
Redelivery and Reinstatement Rate
$25.00
$000
$25.00
4
Roll -off Disposal Rate:
$148.80
$4.86
$15367
+ LandrilVRecyding Fee
Roll -off Recycling Rate:
$148.80
$4.86
$153.67
market value negotiable
Roll -off Compactor Rate:
$297.61
$9.73
$307.33
+ Landfill/Recycling Fee
Roll -off Recycling Compactor Rate'
1 $29761
1 $973
$307.33
market value negotiabl
The annual solid waste management fee for exemption to required
solid waste collection service mandate shall be:
524.40
Miscellaneous
1
"Hard to Service' Vehicle Usage Rate:
No Charge
2
"Hard to Service" Bin Moving Rate:
No Charge
3
Special Bin Lids (Lokcing /CBLO Rate:
$30.00 (One -Time Fee)
4
Deordorzing /Replacing Bin Rate.
No Charge Once Per Year
Additional Deordorize /Replace Bins:
$30.00
5
Charge For Returned Checks:
$15.00
6
Charge For Delinquent Payments:
$500
For each thirty (30) days that an account is delinquent beyond the date of written notice issued
for thirty (30) days of delinquency.
Page 4