Loading...
HomeMy WebLinkAboutAGENDA REPORT 2000 1220 CC REG ITEM 10ATO: FROM: DATE: City of Moorpark AGENDA REPORT The Honorable City Council ITEM 100A9 nmmwww� of 12- �o -a000 ACT 107", APPRDV ST�+G� R :2C)"mENINA770N, JlVGLUOlNG A aPVOAI D IQESO. 07000 - ! 79�% BY: / John Brand, Senior Management Analyst W December 12, 2000 (CC meeting of December 20, 2000) SUBJECT: Solid Waste Ad Hoc Committee Report. SUMMARY At the December 6, 2000 meeting, the City Council appointed an Ad Hoc Committee consisting of Mayor Pro Tem Harper and Councilmember Mikos to explore issues surrounding the City solid waste franchises. The Ad Hoc Committee met Friday, December 8th. The Committee was briefed on the most recent franchise proposal from the haulers, which included full automated solid waste collection service, a rate increase of $1.99 upon implementation, and a contract term of eight years or more. The haulers' position is that a minimum of eight years is necessary to recover the capital outlay and justify the expense of new trucks and containers. The initial goal of the City staff was to implement automated service along with other service improvements, with no cost increase, except the annual CPI. The Ad Hoc Committee also discussed other aspects of the franchise agreements, including: • Customer Service and problem resolution • Litter from collection activities (spills from cans and trucks) • More bulky item pick -ups • Increase Franchise Transfer Fees • Providing additional recycling containers to residential customers from existing supplies. The Ad Hoc Committee felt that it needs additional information and time to assess the hauler proposal. The recommendation of the Ad i>v0001 Solid Waste Ad Hoc Committee Report Meeting of December 20, 2000 Page 2 Hoc Committee is that the current agreement be amended to permit an eighteen month extension. Staff relayed the Committee's concerns to the haulers. Each hauler, GI Industries and Anderson /Moorpark Rubbish Disposal, agreed to an eighteen month extension, the proposed 2001 rates with the 5% franchise fee and reduction in hauler base, improved customer service, providing additional recycling containers upon customer request, and preventing litter and spills from containers and trucks. Therefore, the Ad Hoc Committee recommendation to the Council is to amend and extend the current Agreement for eighteen months until June 30, 2002, and to adopt the 2001 rate resolution presented to Council at the December 6, 2000 meeting. Staff will continue to meet with the haulers on their proposal and franchise issues. The Ad Hoc Committee will meet shortly after the first of the year, and continue as needed. The staff report from that meeting is attached. STAFF RECOMMENDATION (Roll Call Vote) 1. Approve an extension of the City's Franchise Agreements with Moorpark Rubbish Disposal and GI Industries for eighteen months. 2. Authorize the City Manager to execute Amendments to the Solid Waste Franchise Agreements changing the residential franchise fee rate from 4% to 50, and extending the term of the Agreement eighteen months until June 30, 2002. 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 eighteen months, 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 4002 FROM: DATE: City of Moorpark AGENDA REPORT The Honorable City Council John Brand, Senior Management November 28, 2000 (CC meeting Analyst�\ =, �y 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. Additional -y, 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 62fi 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 ar:d Peach Hill Roads, with most of GI's area to Cv0003 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 Si-r.i Valley Landfill tipping fees. The benchmark annual Consumer Price Index (CPI) for this purpose was 3.27%. This represents 86S- 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 4% 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 51.20 on residential accounts and 80 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 ;mown 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 Cj`.i'0V ®Z 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 oo-ion 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 50 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 516.04 hauler base 4% FF 45% of Residential 2000 Franchise AB 939 2000 86% Landfill 2001 Franchise Same 2001 Rate Calculation Total Fee (4 %) Fee Ilauler of CPI Increase Hauler Nee (4 %) 4ft 939 Total Rate Rate Increase * Res. Rate Rate Rcycl. Single Family Service $17.87 S0.63 $1.20 $16.04 $052 $0.00 $16.56 $0.66 $1.20 $18.42 Roll Back to 515.95 hauler base 4 %. FF 45% of Residential 2000 Franchise AB 939 Adjusted 86% Landfill 2001 Franchise Same 2001 Rate Calculation Total Fee Fee Hauler of CPI Increase Hauler 1'ce (4.56 %) AB 939 'Total Rate G 4% Base Increase *Res. Rate Rate Rcycl. SineleFamily Service $1787 $063 $1.20 $15.95 $0.52 $0.00 $16.47 $0.66 S1.20 51833 Roll Back to $15.95 hauler base Increase FF to 4.56% 45% of Residential 2000 Franchise AB 939 A djusted 86% Landfill 2001 Franchise Same 2001 Rate Calculation Total Fee Fee Hauler of CI'I Increase Ilauler Fee (4.56 %) AB 939 Total Rate -q) 4% Base Increase * Res. Rate Rate Rcycl. Single Family Service $17.87 $0.64 $1.20 $15.95 S0.52 50.00 $16.47 $0.75 $1.20 $18.42 C NCI O 0 5 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 n 5% Base Increase ` Res. Rate Rate Rcycl. Single Family $17.87 $0.79 $1.20 $15.95 S052 $0.00 $16.47 $0.82 $1.20 S18.49 Service In addition to the adjus-m.ent 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 - 86° of the Consumer Price Index (CPI) All Items Less Shelter; and the Simi Valley Landfill rate adastmen -, 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 "A". • 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 - -trough 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 :zousehold 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. C rq)0 ` 6 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 62�, 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). is proposed that the new rates be effective on January 1, 2001. STAFF RECODMNDATION (Roll Call Vote) 1. Approve an extension of -he City's Franchise Agreements with Moorpark Rubbish Disposal and GIL 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. term of the Franchise Agreement the 2001 Solid Waste Collection of the Franchise Agreements effective January 1, 2001. 2000- , which extends the Agreements Attachments for three years, and updates Fees, and replaces Exhibit G with a new rate schedule, C 00007 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 an eighteen month period ending June 30, 2002. 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 CCTOOS 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 NNA... 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" 0(11009 Reso'_ution No. 20C0- 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): 16920 Increase: 3.8% Adjusted: 127% Simi Valley Landfill Hauler Rate: 38.23 lncrease 0.00 Adjusted. i.0 City Residential Recycling Rate: 0.42% (Single stream Diversion 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 In/Move Out Service Rate. $15.00 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: 55.00 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 86% of Landfill Rate Calculation Base Rate CPI Increase Coml Rcycl A. One f 11 1 .5 r-uhic vard hin with fnllnwinn nlrki me rwr wnn4, N- 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 GPI Increase Hauler Fee (5 %) AB 939 Total Rate Rate Base Increase " Res. Rate Rcycl. Single Family Service $17.87 $0.64 $1.20 $16.03 $15.94 $0.52 $0.00 $16.47 $0.82 $1.20 $18.49 Up to four discard or yard waste cans. and unlimited recycling Senior Cifizen Rate $1440 $0.51 $1.14 $12.75 $12.69 $0.41 $0.00 $13.10 $0.66 $1.14 514.90 Lime two discard cans Super Recycler Rate $14.40 $0.51 $1.14 $12.75 $1269 $0.41 $0.00 $1310 $0.66 $1.14 $14.90 Lime one 32 gallon discard can 2 One Time Move In/Move Out Service Rate. $15.00 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: 55.00 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 86% of Landfill Rate Calculation Base Rate CPI Increase Coml Rcycl A. One f 11 1 .5 r-uhic vard hin with fnllnwinn nlrki me rwr wnn4, N- Noncontract: $3483 $1.14 $0.00 $35.97 SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS Compacted 1.:2 X weekly pickup rate Page 1 000010 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 $000 $231.06 4 x week 5 x week Not available 6 x week Noncontract: $3483 $1.14 $0.00 $35.97 SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS Compacted 1.:2 X weekly pickup rate Page 1 000010 Resolution No. 2000 - Attachment "A" Franchise Agreement Exhibit "G" 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: 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 5335.15 $10.95 $0.00 $346.10 5 x week $413.01 $13.50 $0.00 $426.51 6 x week $490.89 $1604 $0.00 $506.93 Noncontract: $4044 $1.32 $0.00 $41.76 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 86% of Landfill Rate Calculation Base Rate CPI Increase Coml Rcycl C. One (1) 4.0 cubic yard bin with the following pickups per week. 1 x week 2000 RATE 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 $1241 $0.00 $392.16 5 x week $468.76 $15.32 $000 $484.08 6 x week $557.79 1 $18.23 $0.00 $57602 Noncontract: $46.05 $1.50 $0.00 547.55 SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS Compacted 2X weekly pickup rate evV011 Page 2 Resolution No. 2000 - Attacr-ment "A" Franchise Agreement Exhibit "G" Commercial Recycling /Composting Bin Rates Commercial Recyclables /Compostables 2000 86% of Rate Calculation Base Rate CPI X. A. One (1) 1.5 cubic vard bin with followine oickuos ner 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 $13326 $4.35 $0.00 $137.61 4 x week 5177.67 $5.81 $0.00 $183.48 5 x week $222.10 $7.26 $0.00 $229.36 6 x week $266.51 $871 $0.00 $27522 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 4 1 x week 2000 RATE CPI LF 2001 RATE 5111.06 $3.63 $0.00 $114.69 2 x week $166.57 $544 $0.00 $172.01 3 x week $222.10 57.26 $0.00 $229.36 4 x week $277.62 $9.07 $0.00 $286.69 5 x week $333.15 $10.89 $0.00 $344.04 6 x week $0.00 $000 $0.00 $375.00 Noncontract: $1833 $0.60 $0.00 $18.92 SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS Compacted 2X weekly pickup rate C. One M4 4 O ruhir varrl bin with fnllnwinn nirki ink nor wank 1 x week 2000 RATE CPI LF 2001 RATE $133.26 $435 $0.00 $137.61 2 x week $199.87 $6.53 $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 $13.06 $0.00 $412.85 6 x week 1 $000 1 $0.00 $0.00 $500.00 Noncontract: $22.33 $0.73 $0.00 $23.06 SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS Compacted 2X weekly pickup rate Pace 3 Resolution No. 2000 - Attachment "A" Franchise Agreement Exhibit "G" The temporary bins and rolloffldrop box rates for solid waste, recycling effective January 1, 2001: Temporary 3 Cubic Yard Bin Rate: 2000 RATE CPI 1 2001 RATE $77.74 $2.54 $80.28 No Charge Redelivery and Reinstatement Rate: $25.00 $0.00 $25.00 DeordorzinglReplacing Bin Rate: Roll -off Disposal Rate: $148.80 $4.86 $153.67 + Landfill/Recycling Fee Roll -off Recycling Rate: $148.80 $486 $153.67 market value negotiable Roll -off Compactor Rate 5297.61 $9.73 $307.33 + Landfill /Recycling Fee Roll -off Recycling Compactor Rate: $297.61 $9.73 $307.33 market value negotiable The annual solid waste management fee for exemption to required solid waste collection service mandate shall be: F S24.40 Miscellaneous 1 "Hard to Service" Vehicle Usage Rate. No Charge 2 "Hard to Service" Bin Moving Rate: No Charge 3 Special Bin Lids (LokcingiCBLO Rate: $30.00 (One -Time Fee) 4 DeordorzinglReplacing Bin Rate: No Charge Once Per Year Additional DeordorizefReplace Bins: $30.00 5 Charge For Returned Checks: $15.00 6 Charge For Delinquent Payments: $5.00 For each thirty (30) days that an account is delinquent beyond the date of written notice issued for thirty (30) days of delinquency. C :10G13 Page 4