HomeMy WebLinkAboutAGENDA REPORT 2004 0602 CC REG ITEM 09ETO:
FROM:
MOORPARK CITY COUNCIL
AGENDA REPORT
The Honorable City Council
ITEM q•E.
-
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John Brand, Senior Management Analyst
DATE: May 20, 2004 (CC meeting of June 2, 2004)
SUBJECT: Consider Surcharge Increase at the Simi Valley Landfill
and Changes to the Collection of Countywide Integrated
Waste Management Plan Fees
DISCUSSION
On April 13, the Ventura County Board of Supervisors approved a
$1.65 per ton increase to the Simi Valley Landfill surcharge
effective July 1, 2004. As a direct pass- through, this equates to
increases of $0.22 per month to the Moorpark residential solid
waste rate and $1.07 per month to the standard three cubic yard
commercial dumpster emptied once per week.
If the City were to adjust its rates to address the surcharge
increase July 1, it would be the first mid -year adjustment to the
solid waste collection rate since exclusive franchise collection
service began in 1995. Since the City conducts an annual rate review
and implements eligible rate adjustments each January, staff
proposes that the Council defer the mid -year adjustment resulting
from the landfill surcharge increase until that time. During the
normal rate review process, the July 1 landfill surcharge increase
will be factored into any eligible CPI increase and will take effect
January 1, 2005.
However, if the Council elects to defer the mid -year increase until
January, the City needs to reimburse its franchise solid waste
haulers for the increase surcharge they will be paying at the
landfill. The net impact of the surcharge increase from July 1 to
December 30 will be approximately $23,100. Staff proposes
reimbursing the haulers for the additional cost on a monthly basis
from the City's AB 939 fund balance until the increase can be
incorporated into the fee structure in January.
000248
Authorize Deferral of Solid Waste Fee Increase
CC Meeting of June 2, 2004
Page 2
The AB 939 Fund has sufficient reserves to cover the landfill
surcharge increase for the proposed six month period. The year -end
balance in the AB 939 Fund is estimated to be approximately
$780,000.
In an unrelated development, the County also changed the manner in
which the Countywide Integrated Waste Management Plan (CIWMP) fee
is to be handled after June 30, 2004. The CIWMP fee was established
in 1989 and it is currently $0.50 per ton. The county has collected
the fee from the haulers and landfills to be used for regional
programs. Effective July 1, the County is reducing its portion of
the fee to $0.05. The remaining $0.45 per ton will be directed to
the cities. For Moorpark it is estimated that the $0.45 per ton
equates to a savings of $0.02 per residential account per month.
Staff recommends that the City retain this small revenue source. It
is estimated that the CIWMP fee change will generate approximately
$12,000 annually for the City's General Fund.
STAFF RECOMMENDATION
Defer the solid waste collection rate mid -year increase to January,
2005 and approve the collection of the CIWMP fee as outlined in the
Agenda Report.
Authorize SW fee deferral - draft 3 000249