HomeMy WebLinkAboutAGENDA REPORT 2001 1219 CC REG ITEM 10BITEM ---1 /0.. a
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AC-1 I I N,
Moorpark City Council
AGENDA REPORT By:
TO: The Honorable City Council
FROM: John Brand, Senior Management Analyst 6
DATE: December 12, 2001 (CC meeting of December 19, 2001)
SUBJECT: Solid Waste Collection Rate Adjustment and Franchise
Agreement Modification
SUMMARY
This item, if approved, would provide for the annual adjustment to
solid waste collection fees, as specified in the Franchise
Agreements between the City and the refuse haulers, and amend the
existing Agreements to revise the landfill rate calculation
methodology. The City received notification from the Simi Valley
Landfill that a $.92 per ton landfill tipping fee increase would go
into effect January 1, 2002. The new landfill fee adjustment
methodology proposed by staff would reduce the impact of landfill
tipping fee increases on Moorpark residents. The recommended rate
adjustment would increase the residential rate from $18.49 per
month to $19.06. The senior citizen and super recycler rates would
increase from $14.90 to $15.37. The new rates would take effect
January 1, 2002.
DISCUSSION
On December 20, 1995, the City Council approved exclusive franchise
agreements for commercial and residential service with GI Rubbish
and Moorpark Rubbish Disposal. 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
Industries 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
Solid Waste Rate Adjustment
Meeting of December 19, 2001
Page 2
(CPI), and the City's waste diversion efforts.
The City Council is therefore being asked to consider increasing
the monthly residential base rate by the amounts specified in
attachment "A." The increase amounts include the annual cost of
living adjustment, and a reduced increase in the landfill fees. 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; and 8% from commercial service for AB 939 fees). It is
proposed that the new rates be effective on January 1, 2002.
Additionally, the Council is asked to approve a new methodology
that reduces the impact of landfill tipping fee increases on
residential customers. An Amendment to Exhibit "H" of the Franchise
Agreement is necessary to implement a technical change in the way
the landfill tipping rates are calculated. The old rate adjustment
formula was not based on tonnage, and it imposed disproportionately
higher cost increases on residential customers and smaller
commercial customers. The new landfill adjustment methodology uses
real tonnage to allocate the landfill cost increase in proportion
to disposal. The most notable change is in the residential landfill
rate. The January 2002 increase in the landfill tipping fee of 92�
per ton would equate to a 33� per month increase for each
residential account under the old formula. Using the new formula,
the rate increase is only 10G a month, a savings of 23� per
household per month for Moorpark residents. The new landfill
formula will continue to work for Moorpark residents because the
Simi Valley landfill already has $3.00 in tipping fee increases
pending approval with the County of Ventura. It is anticipated that
these additional increases will be implemented in the next few
years. As Moorpark residents expand their source reduction and
recycling, disposal tonnages are lowered and the amount of a
landfill disposal increases allowed also goes down in the new
formula.
Annual Rate Adjustment Formula
The residential collection rates are as follows:
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 2.67 %. This represents 86% of the CPI for all
consumers in the Los Angeles Urbanized Area during the period July-
2001
Existing
2002
Regular Residential
18.49
19.06
Senior /Super Recycler
14.90
15.37
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 2.67 %. This represents 86% of the CPI for all
consumers in the Los Angeles Urbanized Area during the period July-
Solid Waste Rate Adjustment
Meeting of December 19, 2001
Page 3
July, less housing. The landfill tipping fee increased 92� per ton.
With these adjustments factored in, the residential solid waste
rate increases 57� per month, to $19.06. The CPI component accounts
for 47� of the change, and the landfill component accounts for 10�
of the proposed increase. The senior citizen and super recycler
rate will increase 47� per month to $15.37. Commercial rates will
increase proportionately.
Future Franchise Agreements
While staff had hoped to present new franchise agreements for
Council consideration in December, a number of language changes and
agreement revisions are still pending. It is anticipated that the
Council will be asked to consider the new agreements at its meeting
on January, 16, 2002. At that time, the Council will be asked to
consider a number of new provisions, including automated collection
and expanded services. Once the finial drafting of the agreements
has been completed, the Council will be provided a copy of the
agreements, detailing the recommended changes.
STAFF RECOMMENDATION (Roll Call Vote)
1. Approve an Amendment to the existing Franchise Agreements with
Moorpark Rubbish Disposal and GI Industries, with a revised
exhibit "H," making certain changes to the rate calculation
methodology, subject to final language approval by the City
Manager and City Attorney.
2. Adopt attached Resolution No. 2001- , which updates the
Solid Waste Collection Fees, effective January 1 2002,
rescinds and replaces last year's rate Resolution 2000 -1799,
and replaces Exhibit G of the Franchise Agreements with a new
rate schedule, effective January 1, 2002.
Attachments
RESOLUTION NO. 2001-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MOORPARK, CALIFORNIA, UPDATING SOLID WASTE
COLLECTION FEES AND RESCINDING RESOLUTION
2000 -1799.
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. Industries 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 December 20, 2000 the City Council adopted
Resolution 2000 -1799 establishing solid waste collection fees
effective January 1, 2001.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Effective January 1, 2002, the monthly
residential solid waste, recycling, and green waste collection rate
shall be as shown in the Exhibit Attachment "A."
SECTION 2. Effective January 1, 2002, the commercial,
industrial, and multi - family solid waste, recycling, and composting
bin collection rates shall be as shown in the Exhibit Attachment
%'A "
SECTION 3. Effective, January 1, 2002, 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
Resolution No. 2001- 0000 Attachment "A"
Page 2
Franchise Agreement Exhibit "G"
SECTION 4. Effective January 1, 2002, the annual Solid
Waste Management Fee for exemption to the required solid waste
collection service mandate shall be $24.40.
SECTION 5. The previous Exhibit G (Service Fee Schedule)
of the Franchise Agreement dated January 1, 2001, is hereby
superseded with the new Exhibit G dated January 1, 2002.
SECTION 6. This Resolution hereby rescinds Resolution
2000 -1799 in its entirety.
Section 7. The City Clerk shall certify to the adoption of
the resolution and shall cause a certified resolution to be filed
in the book of original Resolutions.
PASSED AND ADOPTED this 19th day of December 2001.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
ATTACHMENTS: Attachment A, Solid Waste Fee Schedule
Franchise Agreement Exhibit "G"
Exhibit G
SERVICE FEE SCHEDULE
DATED DECEMBER 19, 2001
(e
(�S,iC1SC[l.,
86%
.:y
2002 sub
`trY7kalleal #) Qlspc3$,zFee 3J 15,)ncrease�
', 0,
Manual Residential
2001
of CPI
.�.k:4
total
Franchise
T
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Increase
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Total Rate
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2002 Residential Rates
1. The monthly residential solid waste, recycling, and yard waste collection rates effective January 1.2002:
Automated Service
86%
2002 sub
Manual Residential
2001
of CPI
Landfill
total
Franchise
AB 939
2002
Rate Calculation
Total Rate
Increase
Increase
(Hauler
Fee (5 %)
Total Rate
Rate)
$18.49
$0.44
$0.10
$17.01
$0.85
$1.20
$19.06
A. Single Family Service
B. Senior Citizen Rate
$14.90
$0.35
$0.10
$13.56
$0.68
$1.14
$15.37
C. Super Recycler Rate
1 $14.90
1 $0.35
1 $0.10
$13.56
$0.68
$1.14
$15.37
Automated Service
86%
2002 sub
Residential
2001
of CPI
Landfill
total
Franchise
AB 939
2002
Rate Calculation
Total Rate
Increase
Increase
(Hauler
Fee (5 %)
Total Rate
Rate
$20.58
$0.49
$0.10
$19.06
$0.95
$1.20
$21.21
A. Single Family Service
B. Senior Citizen Rate
$15.43
$0.36
$0.10
$14.08
$0.70
$1.14
$15.92
C. Super Recycler Rate
$15.43
$0.36
$0.10
$14.08
$0.70
$1.14
$15.92
D. Limited Service (w /o
and ) ap roval required
1
$15.25
Automated Collection Service Detail
A. Regular Monthly Rate: $21.21
Trash - 64- gallon cart
Recyclables - 64- gallon cart
Yard Waste - 96- gallon cart
B. Senior Monthly Rate: $15.92
Trash - 32- gallon cart
Recyclables - 64- gallon cart
Yard Waste - 64- gallon cart
C. Super Recycler Rate $15.92
Trash - 32- gallon cart
Recyclables - 64- gallon cart
Yard Waste - 64- gallon cart
D. Service options
Trash cart exchange from 64 to 96 3.00 /mo
Additional 64 gallon trash cart 5.00 /mo
Additional 96 gallon trash cart 8.00 /mo
Additional 96 gallon yardwaste cart 3.00 /mo
`,o ,- !;, ..
.
2
3
4
5
Recycle cart exchange from 64 to 96 1.00 1mo
Additional 64 gallon recycle cart 2.50 /mo
Additional 96 gallon recycle cart 3.00 /mo
E. Limited Service w/o yard waste 15.25/mo
Trash - 32- gallon cart
Recyclables - 64- gallon cart
No Yard Waste service
F. Service Changes
Customer may change service levels one
time during the first year of new service at
no charge. Subsequent service changes 5.00
per request
One Time Move In /Move Out Service Rate: $15.00
Return Check Charge: $15.00
Additional Bulky Item Pick Up: $25.00
(After two free pickups of up four items each year)
Two (2) Extra Containers Pick Up: $5.00
2002 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and multi - family solid waste, recycling, and
composting bin collection rates, effective January 1, 2002:
Commercial Discards 2001 86% of Landfill
Rate Calculation Base CPI Increase
Rate
1.5
A. One (1)
1.5 cubic yard bin with following
pickups per week:
CPI
2001
CPI
LF
2002
RATE
RATE
$104.85
RATE
1 x week
$93.31
$2.50
$0.30
$96.10
2 x week
$162.17
$4.34
$0.60
$167.11
3 x week
$231.06
$6.18
$0.901
1 $238.14
4 x week
5 x week
Not available
6 x week
Noncontract: $35.97 $0.96 $0.30 $37.23
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 1.5 Cubic Yard pickup: 2 X weekly pickup rate
Commercial Discards 2001 86% of Landfill
Rate Calculation Base CPI Increase
Rate
9
B. One (1) 3.0 cubic yard bin with following pickups per week:
2001
CPI
LF
2002
RATE
RATE
$104.85
$2.80
$0.60
$108.25
1 x week
Pl
� C
2 x week
$185.26
$4.95
$1.20
$191.41
3 x week
$265.69
$7.11
$1.79
$120.28
$274.59
4 x week
$346.10
$9.26
$2.39
$215.44
$357.75
5 x week
$426.51
$11.41
$2.99
$310.64
$440.91
6 x week
$506.93
$13.561
$3.59
$405.83
$524.08
Noncontract: $41.76 $1.12 $0.60 $43.48
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
2002 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and multi - family solid waste, recycling, and
composting bin collection rates, effective January 1, 2002:
Commercial Discards 2001 86% of Landfill
Rate Calculation Base CPI Increase
Rate
C. One (1) 4.0 cubic yard bin with the following pickups per week:
4
1 x week
2001
RATE
CPI
LF
2002
RATE
$116.37
$3.11
$0.80
$120.28
2 xweek
$208.28
$5.57
$1.59
$215.44
3 x week
$300.22
$8.03
$2.39
$310.64
4 x week
$392.16
$10.49
$3.19
$405.83
5 x week
$484.08
$12.95
$3.98
$501.01
6 x week
$576.02
$15.41
$4.78
$596.214
Noncontract: $47.55 $1.27 $0.80 $49.62
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
Commercial Recycling /Composting Bin Rates
Commercial 2001 86% of
Recyclables /Compostables Base CPI
Rate Calculation Rate
A. One (1) 1.5 cubic yard bin with following pickups per week:
1.5
1 x week
2001
RATE
CPI
LF
2002
RATE
$45.87
$1.23
$0.00
$47.09
2 x weekx
$91.76
$2.45
$0.00
$94.21
3 week
$137.61
$3.68
$0.00
$141.29
4 x week
$183.48
$4.91
$0.00
$188.39
5 x week
$229.36
$6.13
$0.00
$235.49
6 x week
$275.22
$7.36
$0.00
$282.58
Noncontract: $15.14 $0.40 $0.00 $15.54
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
".4t
2002 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and multi - family solid waste, recycling, and
composting bin collection rates, effective January 1, 2002:
B. One (1) 3.0 cubic yard bin with following pickups per week:
Commercial 2001
Recyclables /Compostables Base 86% of CPI
Rate Calculation Rate
3
4
1 x week
2001
RATE
CPI
LF
2002
RATE
2002
RATE
$57.32
$1.53
$0.00
$82.43
$58.86
2 x week
$114.69
$3.07
$0.00
$117.76
3 x week
$172.01
$4.60
$0.00
$176.61
4 x week
$229.36
$6.13
$0.00
$235.49
5 x week
$286.69
$7.67
$0.00
$157.78
$294.36
6 x week
1 $344.04
$9.20
$0.001
market value negotiable
$344.04
Noncontract: $18.92 $0.51 $0.96 $19.43
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
C. One (1) 4.0 cubic yard bin with following pickups per week:
1 x week
2001
RATE
CPI
LF
2002
RATE
2002
RATE
$69.87
$1.87
$0.00
$82.43
$71.74
2 x week
$137.61
$3.68
$0.00
$141.30
3 x week
$206.40
$5.52
$0.00
$211.92
4 x week
$275.22
$7.36
$0.00
$282.58
5 x week
$344.04
$9.20
$0.00
$157.78
$353.24
6 x week
$412.84
$11.04
$0.00
market value negotiable
$423.89
Noncontract: $23.06 $0.62 $0.96 $23.68
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, 2002:
Temporary 3 Cubic Yard Bin
2001
RATE
CPI
2002
RATE
$80.28
$2.15
$82.43
Rate:
Redelivery and Reinstatement
$25.00
$0.00
$25.00
Rate:
+ Landfill /Recycling Fee
Roll -off Disposal Rate:
$153.67
$4.11
$157.78
Roll -off Recycling Rate:
$153.67
$4.11
$157.78
market value negotiable
Roll -off Compactor
Rate:
$307.33
$8.22
$315.55
+Landfill /Recycling Fee
Roll -off Recycling Compactor
Rate:
$307.331
$8.22
$315.55
market value negotiable
C
The annual solid waste management fee for exemption to required
solid waste collection service mandate shall be: $24.40
Miscellaneous
CPI
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:
$5.00
For each thirty (30) days that an account is delinquent
beyond the date of written
notice issued for thirty (30) days of delin uenc .
7 Franchise Transfer Fee
2001
CPI
2002
RATE
RATE
$25,000.00
$0.00
$50,000.00
Exhibit H RATE ADJUSTMENT SCHEDULE
DATED DECEMBER 19, 2001
1. Annual Consumer Price Index (CPI) and Tipping Fee
Adjustment.
The ceiling on rates in Exhibit "G" shall be
automatically adjusted to reflect changes in the
consumer price index and landfill fees. The adjustment
shall be effective as of the first day of January of
each calendar year. The CPI adjustment shall be equal
to the amount derived by multiplying the previous rate
times the percentage increase or decrease in the
Consumer Price Index for all urban consumers within
the Los Angeles metropolitan area during the prior
calendar year, excluding the housing component. The
comparison shall be made using the month of July of
each year and shall be effective each January 1st
thereafter. As of January 1, 2002, the posted
landfill tipping fee is $39.15 per ton. The first rate
adjustment shall occur January 1, 2002 as authorized
by applying the terms of this Agreement. The landfill
tipping fee adjustment shall be effective at the start
of the first full billing period after the landfill
tipping fee is adjusted. The formulas for the annual
CPI and Landfill Tipping Fee Adjustments are as
follows:
(1) CPI Formula: Rate x (86% x CPI)
(2) Landfill Tipping Fee Formula:
(a) Residential Rate - A landfill fee
change (increase or decrease) is
calculated by multiplying monthly
residential disposal by the change in
the amount of the posted landfill
charge per ton. To determine the
monthly residential disposal, the total
annual residential discards tonnage
collected by GRANTEE's is divided by
the total number of GRANTEE accounts
and by twelve (months in a year). The
monthly residential disposal is
multiplied by the amount of the
landfill change per ton. The annual
residential discards tonnage is the
total CITY residential landfill
discards for the most recent calendar
year.
For example, in the year 2000, the
annual residential discards totaled
10,191 tons and there was an average of
7,903 accounts. The tonnage divided by
2. CIWMP FEES
the accounts equals 10,191 divided by
7,903 = 1.29 tons per residential
account per year. Dividing 1.29 by 12 =
.11 tons per household per month. The
formula can also be expressed as =SUM
(annual residential disposal /number of
accounts /12) *(tip fee change)= monthly
landfill change. The 2002 Landfill
increase is $.92 per ton for a new
posted rate of $39.15 per ton.
Therefore, the landfill increase for
residential customers is 10,191 / 7,903
= 1.29 / 12 = .11 * .92 = $.10 increase
per month for each residential account.
Adjustments to the Green Waste disposal
fee will be calculated in the same
manner to pass through adjustments to
the posted tipping fee for Green Waste.
The 2002 posted tipping fee for Green
Waste is $27.63.
(b) Non - Residential Rate - For the purposes
of non - residential rate calculation, it
is agreed that the landfill tipping fee
adjustment rate will be at the basis of
one hundred pounds (100 lbs.) per cubic
yard of container service volume
provided. To determine the monthly
landfill rate adjustment for various
bin sizes and service level, the
formula can also be expressed as =SUM
(tip fee change * (container CY *
weekly pickups * 4.33 * .05). For
example, with a $0.92 increase in the
posted landfill rate, a three cubic
yard bin picked up once per week would
have its landfill adjustment calculated
as follows: =SUM (0.92 * (3 *1 *4 .33* . 05) =
$0.60 per month increase. A three yard
bin picked twice per week would have a
$1.20 per month increase, etc.
Notes: 4.33 represents the average
number of weekday occurrence per month
(52/12 = 4.33); .05 is 100/2000 (the
weight of a typical uncompacted cubic
yard of discards) divided by 2000, or
one ton.
California Integrated Waste Management Program (CIWMP)
fees imposed by the County shall be passed through to
CITY or ratepayer as directed by CITY. Any CIWMP fee
decreases shall also be passed through to CITY or
ratepayer as directed by CITY. As of July 1, 1999, the
CIWMP fee is 50� per ton.
3. Extraordinary Costs
A. In addition to, and not in lieu of, the annual
CPI adjustment GRANTEE shall also be entitled to
rate increases or decreases in an amount equal to
GRANTEE'S extraordinary increases or decreases in
its cost of collection. GRANTEE'S IPC processing
fees, now or later imposed, shall neither be
levied on CITY nor added to the rates in Exhibit
G. In addition, any fees imposed on the GRANTEE
by another public agency related to the disposal,
processing, transportation, or use of public
infrastructure in the form of a fee or other
consideration shall neither be levied on CITY or
any customer nor added to the rates in Exhibit G
without the approval of CITY. Such
extraordinary increases or decreases in the cost
of collection may include, by way of example and
not by way of limitation: (1) a change in the
location of the landfill or other lawful disposal
sites to which the GRANTEE is required to
transport Solid Waste collected hereunder; (2)
changes in the local, State or Federal laws
governing temporary bin and roll off drop box
services and collection, separation,
transportation, recycling, composting,.or
disposal of Solid Waste. Any additional special
fees associated with special or mandated CITY
programs in excess of those required in the
Agreement shall be authorized by the City Council
which shall consider a supplemental rate
adjustment.
B. Services and rates not listed in this
Exhibit shall be considered an unauthorized level
of service and rate and shall not be provided or
levied within the CITY limits of the City of
Moorpark. Such services and proposed rates shall
be brought to the attention of the City Manager
for evaluation and disposition.
(1) Senior citizen and Super Recycler rate.
The Council shall approve by resolution, at the time of the
annual rate review, the percentage change in rates for
senior citizen heads of household, sixty -two (62) years of
age and older and Super Recycler rate. The percentage,
which shall be comparable to the percentage adjustment,
authorized for all other customers.
�J,Y _r:
(2) Special fees. GRANTEE may, in addition
to a monthly charge for Solid Waste services, charge an
additional fee for accounts in arrears ninety (90) days or
more, at which time the GRANTEE may require a deposit from
a customer equal to the cost of ninety (90) days of service
before renewing or continuing to provide service. Such
deposit shall be refundable and shall not replace or reduce
any past due amounts or late charges owed which may be
required to be paid in full at the same time a deposit is
paid.
(3) Rate Review. GRANTEE shall pay to City
actual City staff costs for staff time spent processing
annual rate reviews, but not to exceed twenty (20) hours
annually.