HomeMy WebLinkAboutAGENDA REPORT 2019 1218 REG CCSA ITEM 08BCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of December 18, 2019
ACTION Adopted Resolution No. 2019-
3866.
BY B.Garza.
B. Public Hearing to Consider a Resolution Establishing New Maximum Solid Waste
Rates to be Effective January 1, 2020, and Rescinding Resolution No. 2018-
3774. Staff Recommendation: Adopt Resolution No. 2019-3866, adopting new
maximum solid waste rates to be effective January 1, 2020, and Rescinding
Resolution No. 2018-3774. (ROLL CALL VOTE REQUIRED) (Staff: Teri Davis)
Item: 8.B.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Teri Davis, Program Manager
DATE: 12/18/2019 Regular Meeting
SUBJECT: Public Hearing to Consider a Resolution Establishing New Maximum
Solid Waste Rates to be Effective January 1, 2020, and Rescinding
Resolution No. 2018-3774
BACKGROUND
Moorpark Municipal Code Section 8.36.350 grants the City Council the authority to
establish, by resolution, a ceiling on the charges a solid waste franchisee may charge
for solid waste services at the conclusion of a public hearing. At the June 6, 2018, City
Council meeting, Council granted an exclusive Franchise Agreement to USA Waste of
California, Inc., a subsidiary of Waste Management Holdings, Inc. (USA Waste), for the
collection, management, and disposal of solid waste and recyclables within the City
limits. On July 1, 2018, the new Franchise Agreement became effective as did new
maximum solid waste rates that USA Waste could charge, and City Council amended
those rates with Resolution No. 2018-3774, increasing the maximum allowable solid
waste rates for 2019.
DISCUSSION
Prior to the July 1, 2018 rate increase, the solid waste fees had not increased since
January 1, 2011, as the solid waste franchisees agreed to voluntarily defer rate
increases until new agreements, or as it turned out, a new agreement, was negotiated.
The rates that went into effect on July 1, 2018 were essentially the 2018 rates and were
intended to be implemented for the entire calendar year of 2018, but actually went into
effect for only half the year. Moorpark solid waste and recycling customers were
provided with a savings during the first part of 2018. The Franchise Agreement allows
USA Waste to request an increase in the maximum rates on or before November 15 of
each year, and the City received such a request from USA Waste in 2018 and again in
2019.
Item: 8.B.
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Honorable City Council
12/18/2019 Regular Meeting
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USA Waste is requesting a Consumer Price Index (CPI) increase on all solid waste
fees, and they are also requesting an Extraordinary Adjustment (Adjustment) increase
(see Attachment 1). The Adjustment amounts to $0.20 or $0.25 for recycling costs and
$0.82 or $1.02 for green waste costs on residential rates, with the lower increases tied
to senior rates, and $7.58 to $121.26 for recycling costs and $7.58 to $101.05 for green
costs on commercial rates. These Adjustments reflect 3.80% to 7.90% increases for
residential customers, which includes the regular CPI increase, and an additional
12.72% to 18.80% increases for commercial customers which typically generate more
waste than residential customers. Commercial customers will also see a CPI increase
of 2.98% in trash collection. Pursuant to the Franchise Agreement, an extraordinary
adjustment can be requested by USA Waste when certain conditions exist.
The Adjustment requested this year includes impacts from recyclable materials market
conditions and green waste. California Assembly Bill 1594 (AB 1594), which no longer
allows green waste historically used as Alternate Daily Cover (ADC) in landfills (a layer
of green waste spread over trash placed in the landfills at the end of each day) to be
considered a diverted material, becomes effective January 1, 2020. After January 1,
only green waste diverted to composting facilities will be considered diverted material
required by California mandates and reported to CalRecycle, the California regulatory
agency to which all regulatory reports are submitted. All cities and towns in California
will be subject to rate impacts due to the mandates set forth by AB 1594 which require
diversion of green waste from landfills. The change in handling green waste material
will increase from $51.00 per ton in 2019 to $70.00 per ton in 2020 because the green
waste will now be hauled to alternative composting facilities rather than being used at
Simi Valley Landfill and Recycling Center as ADC. This change effectively makes
green waste costs equal to disposal costs.
As discussed at previous City Council meetings in June and December of 2018, the
recyclable materials market changed drastically in 2018. There are now fewer locations
accepting recyclable materials, and those locations accepting recyclable materials now
require recyclable materials to ship cleaned materials only. This cleaning process
increases the cost of handling recyclable materials. Recycling costs increased again in
2019 by $25.00 per ton and may increase next year before these new costs begin to
stabilize.
Table 1 illustrates a snapshot of the proposed rate increase based off of the request for
increase the City received from USA Waste. All of the maximum rates being proposed
are provided in Exhibit 1 of the attached resolution.
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12/18/2019 Regular Meeting
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Table 1: Comparison of Moorpark Current and Proposed Rates
Customer Type Current Rate Proposed Rate Difference
Residential, Standard Service $31.95 $34.22 $2.27
Commercial Trash
(3.0-cu. yd. bin, 1x/ week) $175.07 $180.28 $5.21
Commercial Recycling
(3.0-cu. yd. bin, 1x/week) $116.88 $137.37 $20.49
The majority of the proposed residential rates reflect a change that is slightly below or
above 5%, the proposed solid waste commercial rates increased 2.98%, proposed
organics rates increased 4.84% (organics means food waste, green waste, landscape
and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is
mixed in with food waste), and the proposed commercial recycling/green waste rate
increase exceeds 10% and is less than 20%.
Table 2: Comparison of Moorpark Proposed Rates to
Adopted 2020 Rates at the cities of Simi Valley and Thousand Oaks
Customer Type Moorpark
Proposed Rates
Simi Valley
Adopted Rates
Thousand Oaks
Adopted Rates
Residential, Standard Service $34.22 $34.02 $35.78
Commercial Trash
(3.0-cu. yd. bin, 1x/ week) $180.28 $163.55 $173.05
Commercial Recycling
(3.0-cu. yd. bin, 1x/week) $137.37 $108.25 $Still need
Rates between cities are not quite comparable. For example, while Thousand Oaks
has the same cart sizes as Moorpark does for residential standard service, 64 gallon
carts for trash and recycling with a 94 gallon cart for green material, Simi Valley
services include 71 gallon carts for all three categories in standard service.
Nevertheless, the proposed maximum allowable rates places Moorpark $0.20 above
Simi Valley and $1.56 below Thousand Oaks for Residential, Standard Services.
Public Resources Code (PRC) Section 40059 grants the City broad authority over solid
waste collection, including “level of services, charges and fees”. PRC 40059 also
grants the City the authority to set the “terms and conditions” for the provision of solid
waste handling services. The City Council may adopt maximum allowable rates to
which the franchised waste hauler is subject, even though the City is not a rate regulator
and does not set rates.
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12/18/2019 Regular Meeting
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FISCAL IMPACT
The increase in solid waste fees will have a minimal, positive impact on the General
Fund. By increasing the solid waste rates, the City will also see an increase in the
franchise fees paid by USA Waste to the City. The residential franchise fees are 6%
and the commercial franchise fees are 16%.
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION
Adopt Resolution No. 2019-____, adopting new maximum solid waste rates to be
effective January 1, 2020, and Rescinding Resolution No. 2018-3774.
Attachment 1: Letter from USA Waste dated December 12, 2019
Attachment 2: Draft Resolution No. 2019-____
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ATTACHMENT 2
RESOLUTION NO. 2019-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, UPDATING THE SOLID
WASTE COLLECTION SERVICE FEE SCHEDULE AND
RESCINDING RESOLUTION NO. 2018-3774
WHEREAS, the City provides residential and commercial solid waste and
recycling collection services; and
WHEREAS, Moorpark Municipal Code Section 8.36.350 grants the City Council
the authority to establish, by resolution, a ceiling on the amounts of charges a
franchisee may charge for solid waste at the conclusion of a public hearing; and
WHEREAS, on June 6, 2018, the City Council granted an exclusive Franchise
Agreement to USA Waste of California, Inc., a subsidiary of Waste Management
Holdings, Inc. (USA Waste), for the collection, management, and disposal of solid waste
and recyclables within the City limits; and
WHEREAS, the Franchise Agreement allows USA Waste to request a rate
increase in November of every year in which the Franchise Agreement is in effect; and
WHEREAS, USA Waste submitted to the City a request for a 2020 rate increase
in compliance with the Franchise Agreement; and
WHEREAS, at a duly noticed public hearing on December 18, 2019, the City
Council took public testimony, closed the hearing, and declared its intention of
maintaining reasonable rates for collection, management, and the disposal of solid
waste and recyclables within the City limits effective on January 1, 2020.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Effective January 1, 2020, the maximum solid waste service rates
that may be charged by a franchisee shall be as shown in Exhibit 1.
SECTION 2. The annual Self-Haul Exemption Permit fee shall continue to be
$60.00 for the initial application for an annual Self-Haul Exemption Permit and $30.00
for an annual Self-Haul Exemption Permit renewal. Residents who qualify as seniors,
age sixty-two (62) or older, receive a twenty percent (20%) discount on both the initial
application for an annual Self-Haul Exemption Permit and renewal fees.
SECTION 3. This resolution shall be effective on January 1, 2020.
SECTION 4. Resolution No. 2018-3774 is hereby rescinded in its entirety upon
the effective date of this resolution.
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Resolution No. 2019-____
Page 2
SECTION 5. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 18th day of December, 2019.
________________________________
Janice S. Parvin, Mayor
ATTEST:
___________________________________
Ky Spangler, City Clerk
Attachment: Exhibit 1 – Maximum Rates Effective January 1, 2020
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Resolution No. 2019-____
Page 3
EXHIBIT 1 – MAXIMUM RATES EFFECTIVE JANUARY 1, 2020
Residential Service Rates
BASE SERVICE
Option A1: Regular Full Service Rate .............................................. $ 34.22 per month
• 64-gallon trash cart
• 64-gallon recyclables cart
• 96-gallon yard trimmings cart
Option A2: Senior Full Service Rate (62+ years) ............................. $ 28.62 per month
• 64-gallon trash cart
• 64-gallon recyclables cart
• 96-gallon yard trimmings cart
Option B1: 32-Gallon Service Rate .................................................. $ 28.88 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• 64-gallon yard trimmings cart
Option B2: Senior 32-Gallon Service Rate ....................................... $ 24.16 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• 64-gallon yard trimmings cart
Option C1: Limited/No Yard Trimmings Rate ................................... $ 23.69 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• No yard trimmings cart
Option C2: Senior Limited/No Yard Trimmings Rate ........................ $ 23.29 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• No yard trimmings cart
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Resolution No. 2019-____
Page 4
SERVICE UPGRADES
1. Trash Service Upgrades
a. Upgrade trash cart from 32-gallon to 64-gallon ............ $ 3.58 per month
(Only available with Options C1, C2)
b. Upgrade trash cart from 64-gallon to 96-gallon ............ $ 3.58 per month
(Only available with Options A1, A2)
c. Additional 64-gallon trash cart ..................................... $ 5.98 per month
(Only available with Options A1, A2)
d. Additional 96-gallon trash cart ..................................... $ 9.57 per month
(Only available with Options A1, A2)
2. Recycling Service Upgrades
a. Upgrade recycling cart from 64-gallon to 96-gallon ..... $ 1.17 per month
b. Additional 64-gallon recycling cart ............................... $ 3.24 per month
c. Additional 96-gallon recycling cart ............................... $ 3.84 per month
d. Downgrade recycling cart from 64-gallon to 32-gallon . No Charg
3. Yard Trimmings Service Upgrades
a. Upgrade yard trimmings cart from 64-gal. to 96-gal. .... $ 2.37 per month
b. Additional 96-gallon yard trimmings cart ...................... $ 4.64 per month
OTHER CHARGES
Customer Service Level Changes .......................................... $ 6.14 per request
Move In/Move Out Service ..................................................... $ 20.09
Additional Bulky Item Pickup .................................................. $ 29.86 per item
(Two pickups of up to three items each per year are free)
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Resolution No. 2019-____
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Commercial Service Rates
DISCARD BIN RATES
Option A: One 1.5 Cubic-Yard Discard Bin
a. Pick up one time per week ................................................ $161.63 per month
b. Pick up two times per week ............................................... $273.46 per month
c. Pick up three times per week ............................................ $385.28 per month
d. Pick up four times per week .............................................. $497.03 per month
e. Non-contracted 1.5 cubic-yard pickup ............................... $ 68.48
f. Compacted 1.5 cubic-yard pickup ..................................... $323.27
Option B: One 3.0 Cubic-Yard Discard Bin
a. Pick up one time per week ................................................ $180.28 per month
b. Pick up two times per week ............................................... $310.72per month
c. Pick up three times per week ............................................ $442.81 per month
d. Pick up four times per week .............................................. $571.59 per month
e. Pick up five times per week ............................................... $702.03 per month
f. Pick up six times per week ................................................ $832.46 per month
g. Non-contracted 3.0 cubic-yard pickup ............................... $ 77.79
h. Compacted 3.0 cubic-yard pickup ..................................... $360.55
Option C: One 4.0 Cubic-Yard Discard Bin
a. Pick up one time per week ................................................ $198.89 per month
b. Pick up two times per week ............................................... $347.92 per month
c. Pick up three times per week ............................................ $497.06 per month
d. Pick up four times per week .............................................. $646.14 per month
e. Pick up five times per week ............................................... $795.21 per month
f. Pick up six times per week ................................................ $944.35 per month
g. Non-contracted 4.0 cubic-yard pickup ............................... $ 87.03
h. Compacted 4.0 cubic-yard pickup ..................................... $397.77
64-Gallon Foodwaste Cart
a. Pick up one time per week ................................................ $ 68.32 per month
b. Pick up two times per week ............................................... $136.66 per month
c. Pick up three times per week ............................................ $205.00 per month
d. Pick up four times per week .............................................. $273.34 per month
e. Pick up five times per week ............................................... $341.66 per month
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Resolution No. 2019-____
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Green Waste
a. 1.5 Cubic-Yard one time per week .................................... $ 95.65 per month
b. 3.0 Cubic-Yard one time per week .................................... $ 137.37 per month
c. 3.0 Cubic-Yard two times per week ................................... $ 274.64 per month
d. 3.0 Cubic-Yard three times per week ................................ $ 412.08 per month
e. 3.0 Cubic-Yard four times per week .................................. $ 549.30 per month
f. 3.0 Cubic-Yard five times per week ................................... $ 686.77 per month
g. 4.0 Cubic-Yard one time per week .................................... $ 171.11per month
h. 4.0 Cubic-Yard two times per week ................................... $ 342.28 per month
i. 4.0 Cubic-Yard three times per week ................................ $ 513.41 per month
j. 4.0 Cubic-Yard four times per week .................................. $ 684.59 per month
k. 4.0 Cubic-Yard five time per week .................................... $ 855.69 per month
RECYCLING/COMPOSTING BIN RATES
Option A: One 1.5 Cubic-Yard Recycling or Composting Bin
a. Pick up one time per week ................................................ $ 95.65 per month
b. Pick up two times per week ............................................... $191.38 per month
c. Pick up three times per week ............................................ $287.00 per month
d. Pick up four times per week .............................................. $382.69 per month
e. Pick up five times per week ............................................... $478.34 per month
f. Pick up six times per week ................................................ $574.04 per month
g. Non-contracted 1.5 cubic-yard pickup ............................... $ 61.75
Option B: One 3.0 Cubic-Yard Recycling or Compost Bin
a. Pick up one time per week ................................................ $137.37 per month
b. Pick up two times per week ............................................... $273.62 per month
c. Pick up three times per week ............................................ $412.08 per month
d. Pick up four times per week .............................................. $549.30 per month
e. Pick up five times per week ............................................... $686.77 per month
f. Pick up six times per week ................................................ $824.10 per month
g. Non-contracted 3.0 cubic-yard pickup ............................... $ 87.25
Option C: One 4.0 Cubic-Yard Recycling or Compost Bin
a. Pick up one time per week ................................................ $171.11 per month
b. Pick up two times per week ............................................... $342.28 per month
c. Pick up three times per week ............................................ $513.41 per month
d. Pick up four times per week .............................................. $684.59 per month
e. Pick up five times per week ............................................... $855.69 per month
f. Pick up six times per week ................................................ $998.88 per month
g. Non-contracted 4.0 cubic-yard pickup ............................... $107.66
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Resolution No. 2019-____
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TEMPORARY BINS/ROLL-OFF DROP BOXES
Temporary 3.0 Cubic-Yard Bin ............................................... $143.03
Redelivery and Reinstatement ................................................ $ 32.82
Roll-Off Disposal Bin .............................................................. $240.26
(Plus Landfill/Recycling Fee)
Roll-Off Recycling Bin ............................................................. $237.61
(Market Value Negotiable)
Roll-Off Compactor ................................................................. $480.51
(Plus Landfill/Recycling Fee)
Roll-Off Recycling Compactor ................................................ $475.21
(Market Value Negotiable)
MISCELLANEOUS SERVICES
A. Scout Service .................................................................... Case by Case
B. Special Bin Lids (Locking/CBL) (one-time fee) .................. $ 37.08
C. Deodorizing/Replacing Bin (1x per calendar year) ............ No Charge
D. Additional Deodorizing/Replacing Bin ............................... $ 37.08
E. Charge for Returned Checks ............................................. $ 18.55
F. Charge for Delinquent Payments ...................................... $ 6.18
G. Credit Card Convenience Fee (by Phone) ........................ $ 6.18
H. Extra Pick Up .................................................................... $ 3.81 per bag
$ 6.33 per cart
I. Extra Collection on Non-Scheduled Pick Up Day .............. $ 31.72
J. Residential Cart Re-Delivery Fee ...................................... $ 32.82
K. Temporary Roll-Off Extra Day Fee .................................... $ 12.45 per day
(post 7 days, trash only)
L. Temporary 3.0 Cubic-Yard Bin Rate ................................. $ 12.45 per day
(post 7 days, trash only)
M. Permanent Customer Roll-Off Extra Day Fee ................... $ 12.49 per day
(post 30 days, trash only)
N. Solid Waste Bin Locking/Unlocking Fee ............................ $ 24.98 per month
O. Overage Fee ..................................................................... $ 10.50
P. Contamination Fee ............................................................ $104.87
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