HomeMy WebLinkAboutAGENDA REPORT 2020 1118 CCSA REG ITEM 08ACITY OF MOORPARK, CALIFORNIA
City Council Meeting
of November 18, 2020
ACTION Adopted Resolution No. 2020-
3973. (Roll Call Vote: Unanimous)
BY B.Garza.
A. Public Hearing to Consider a Resolution Establishing New Maximum Solid Waste
Rates to be Effective January 1, 2021, and Rescinding Resolution No. 2019-
3866. Staff Recommendation: Adopt Resolution No. 2020-3973, adopting new
maximum solid waste rates to be effective January 1, 2021, and Rescinding
Resolution No. 2019-3866. (Staff: Mack Douglass)
Item: 8.A.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Kambiz Borhani, Finance Director
BY: Mack Douglass, Program Manager
DATE: 11/18/2020 Regular Meeting
SUBJECT: Public Hearing to Consider a Resolution Establishing New Maximum
Solid Waste Rates to be Effective January 1, 2021, and Rescinding
Resolution No. 2019-3866
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. Subsequently, City Council
amended those rates with Resolution No. 2019-3866, increasing the maximum
allowable solid waste rates for 2020.
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 Franchise Agreement allows USA Waste to request an increase in the maximum
rates on or before October 1 of each year. Rate increases are allowable at an amount
equal to or less than 5% per Section 5.3.1 (D) of the Franchise Agreement. Increases
beyond those justified by increases in the Consumer Price Index (CPI) and Landfill
Tipping Fees are considered extraordinary rate adjustments and are permissible to
capture costs for services and charges for service passed down from the state or other
regulatory agencies. The City received requests for extraordinary rate increases from
Item: 8.A.
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Honorable City Council
11/18/2020 Regular Meeting
Page 2
USA Waste in 2018 and 2019. At this time, USA Waste is requesting only an annual
adjustment based on CPI and Landfill Tipping Fee increases. No extraordinary rate
increase is being sought for this cycle.
For 2021, USA Waste is requesting an adjustment based on increases in Consumer
Price Index (CPI) and Landfill Tipping Fees on all solid waste rates, consistent with
Sections 5.3.1 (B) and (C) of the Franchise Agreement. On October 13, 2020, the US
Bureau of Labor Statistics reported that the over the period between September 2019 –
September 2020, the Consumer Price Index rose 1.2%. Landfill tipping fees have
increased approximately 5% over 2019 rates. Sections 5.3.1 (B) and (C) of the
franchise agreement cap annual rate increases at 70% of CPI increases plus 30% of
Landfill Tipping Fee increases. In turn, this means that the CPI component of the
proposed increase is 0.84%, while the Landfill Tipping Fee adjustment is limited to
1.50%, for a total increase of 2.34%.
The proposed adjustment amounts to $0.78 per month (equivalent to 2.35%) for the
standard residential solid waste service rate. The proposed commercial bin rates call
for a similar increase of approximately 2.34%. If approved, these new rates would
become effective January 1, 2021.
This represents a significantly smaller rate adjustment than that approved by City
Council Resolution No. 2019-3866, which saw an extraordinary adjustment of between
3.80% to 7.90% for residential customers and 12.72% to 18.80% for commercial
customers.
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.
Table 1: Comparison of Moorpark Current and Proposed Rates
Customer Type Current Rate Proposed Rate Difference Percent Change
Residential, Standard
Service $34.22 $35.00 $0.78 2.35%
Commercial Trash
(3.0-cu. yd. bin, 1x/
week)
$180.28 $184.49 $4.21 2.34%
Commercial Recycling
(3.0-cu. yd. bin,
1x/week)
$137.37 $138.52 $0.97 0.84%
It is to be expected that solid waste service rates differ between cities. For example,
while Thousand Oaks has the same cart sizes as Moorpark does for residential
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Honorable City Council
11/18/2020 Regular Meeting
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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 $0.18 above Simi Valley and $1.73 below Thousand Oaks for standard
residential service. Table 2 provides a comparison of proposed rates with those of our
nearest neighboring Cities.
Table 2: Comparison of Moorpark Proposed Rates to
Adopted 2021 Rates at the Cities of Simi Valley and Thousand Oaks
Customer Type Moorpark
Proposed Rates
Simi Valley
Proposed
Rates
Thousand Oaks
Proposed Rates
Residential, Standard Service $35.00 $34.82 $36.73
Commercial Trash
(3.0-cu. yd. bin, 1x/ week) $184.49 $167.38 $180.30
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.
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% of gross receipts generated by USA Waste
for solid waste service in Moorpark.
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION
Adopt Resolution No. 2020-____, adopting new maximum solid waste rates to be
effective January 1, 2021, and rescinding Resolution No. 2019-3866.
Attachment 1: Letter from USA Waste dated October 30, 2020 (note date on letter is
incorrect; letter was received on 9/30/2020)
Attachment 2: Draft Resolution No. 2020-____
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ATTACHMENT 1
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ATTACHMENT 2
RESOLUTION NO. 2020-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, UPDATING THE SOLID
WASTE COLLECTION SERVICE FEE SCHEDULE AND
RESCINDING RESOLUTION NO. 2019-3866
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 2021 rate increase
in compliance with the Franchise Agreement; and
WHEREAS, at a duly noticed public hearing on November 18, 2020, 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, 2021.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Effective January 1, 2021, 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, 2021.
SECTION 4. Resolution No. 2019-3866 is hereby rescinded in its entirety upon
the effective date of this resolution.
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Resolution No. 2020-____
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 November, 2020.
________________________________
Janice S. Parvin, Mayor
ATTEST:
___________________________________
Ky Spangler, City Clerk
Attachment: Exhibit 1 – Maximum Rates Effective January 1, 2021
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Resolution No. 2020-____
Page 3
EXHIBIT 1 – MAXIMUM RATES EFFECTIVE JANUARY 1, 2021
Residential Service Rates
BASE SERVICE
Option A1: Regular Full Service Rate .............................................. $ 35.00 per month
• 64-gallon trash cart
• 64-gallon recyclables cart
• 96-gallon yard trimmings cart
Option A2: Senior Full Service Rate (62+ years) ............................. $ 29.27 per month
• 64-gallon trash cart
• 64-gallon recyclables cart
• 96-gallon yard trimmings cart
Option B1: 32-Gallon Service Rate .................................................. $ 29.53 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• 64-gallon yard trimmings cart
Option B2: Senior 32-Gallon Service Rate ....................................... $ 24.71 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• 64-gallon yard trimmings cart
Option C1: Limited/No Yard Trimmings Rate ................................... $ 24.23 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• No yard trimmings cart
Option C2: Senior Limited/No Yard Trimmings Rate ........................ $ 23.82 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• No yard trimmings cart
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Resolution No. 2020-____
Page 4
SERVICE UPGRADES
1. Trash Service Upgrades
a. Upgrade trash cart from 32-gallon to 64-gallon ............ $ 3.66 per month
(Only available with Options C1, C2)
b. Upgrade trash cart from 64-gallon to 96-gallon ............ $ 3.66 per month
(Only available with Options A1, A2)
c. Additional 64-gallon trash cart ..................................... $ 6.12 per month
(Only available with Options A1, A2)
d. Additional 96-gallon trash cart ..................................... $ 9.80 per month
(Only available with Options A1, A2)
2. Recycling Service Upgrades
a. Upgrade recycling cart from 64-gallon to 96-gallon ..... $ 1.18 per month
b. Additional 64-gallon recycling cart ............................... $ 3.28 per month
c. Additional 96-gallon recycling cart ............................... $ 3.87 per month
d. Downgrade recycling cart from 64-gallon to 32-gallon . No Charge
3. Yard Trimmings Service Upgrades
a. Upgrade yard trimmings cart from 64-gal. to 96-gal. .... $ 2.43 per month
b. Additional 96-gallon yard trimmings cart ...................... $ 4.76 per month
OTHER CHARGES
Customer Service Level Changes .......................................... $ 6.19 per request
Move In/Move Out Service ..................................................... $ 20.56
Additional Bulky Item Pickup .................................................. $ 30.56 per item
(Two pickups of up to three items each per year are free)
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Resolution No. 2020-____
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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 ................................................ $165.42 per month
b. Pick up two times per week ............................................... $279.87 per month
c. Pick up three times per week ............................................ $394.30 per month
d. Pick up four times per week .............................................. $508.67 per month
e. Non-contracted 1.5 cubic-yard pickup ............................... $ 70.07
f. Compacted 1.5 cubic-yard pickup ..................................... $330.83
Option B: One 3.0 Cubic-Yard Discard Bin
a. Pick up one time per week ................................................ $184.49 per month
b. Pick up two times per week ............................................... $317.99 per month
c. Pick up three times per week ............................................ $453.17 per month
d. Pick up four times per week .............................................. $584.96 per month
e. Pick up five times per week ............................................... $718.46 per month
f. Pick up six times per week ................................................ $851.94 per month
g. Non-contracted 3.0 cubic-yard pickup ............................... $ 79.61
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 ................................................ $203.55 per month
b. Pick up two times per week ............................................... $356.02 per month
c. Pick up three times per week ............................................ $508.69 per month
d. Pick up four times per week .............................................. $661.26 per month
e. Pick up five times per week ............................................... $813.82 per month
f. Pick up six times per week ................................................ $966.44 per month
g. Non-contracted 4.0 cubic-yard pickup ............................... $ 89.07
h. Compacted 4.0 cubic-yard pickup ..................................... $407.08
64-Gallon Foodwaste Cart
a. Pick up one time per week ................................................ $ 69.92 per month
b. Pick up two times per week ............................................... $139.85 per month
c. Pick up three times per week ............................................ $209.80 per month
d. Pick up four times per week .............................................. $279.74 per month
e. Pick up five times per week ............................................... $349.64 per month
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Resolution No. 2020-____
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Green Waste
a. 1.5 Cubic-Yard one time per week .................................... $ 97.89 per month
b. 3.0 Cubic-Yard one time per week .................................... $ 140.58 per month
c. 3.0 Cubic-Yard two times per week ................................... $ 281.05 per month
d. 3.0 Cubic-Yard three times per week ................................ $ 421.73 per month
e. 3.0 Cubic-Yard four times per week .................................. $ 562.15 per month
f. 3.0 Cubic-Yard five times per week ................................... $ 702.83 per month
g. 4.0 Cubic-Yard one time per week .................................... $ 175.12 per month
h. 4.0 Cubic-Yard two times per week ................................... $ 350.29 per month
i. 4.0 Cubic-Yard three times per week ................................ $ 525.42 per month
j. 4.0 Cubic-Yard four times per week .................................. $ 700.62 per month
k. 4.0 Cubic-Yard five time per week .................................... $ 875.71 per month
RECYCLING/COMPOSTING BIN RATES
Option A: One 1.5 Cubic-Yard Recycling or Composting Bin
a. Pick up one time per week ................................................ $ 96.45 per month
b. Pick up two times per week ............................................... $192.99 per month
c. Pick up three times per week ............................................ $289.40 per month
d. Pick up four times per week .............................................. $385.90 per month
e. Pick up five times per week ............................................... $482.36 per month
f. Pick up six times per week ................................................ $578.86 per month
g. Non-contracted 1.5 cubic-yard pickup ............................... $ 62.27
Option B: One 3.0 Cubic-Yard Recycling or Compost Bin
a. Pick up one time per week ................................................ $138.52 per month
b. Pick up two times per week ............................................... $276.93 per month
c. Pick up three times per week ............................................ $415.55 per month
d. Pick up four times per week .............................................. $553.92 per month
e. Pick up five times per week ............................................... $692.54 per month
f. Pick up six times per week ................................................ $831.01 per month
g. Non-contracted 3.0 cubic-yard pickup ............................... $ 87.99
Option C: One 4.0 Cubic-Yard Recycling or Compost Bin
a. Pick up one time per week ................................................ $172.55 per month
b. Pick up two times per week ............................................... $345.15 per month
c. Pick up three times per week ............................................ $517.71 per month
d. Pick up four times per week .............................................. $690.35 per month
e. Pick up five times per week ............................................... $862.88 per month
f. Pick up six times per week ................................................ $1007.27 per month
g. Non-contracted 4.0 cubic-yard pickup ............................... $108.56
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Resolution No. 2020-____
Page 7
TEMPORARY BINS/ROLL-OFF DROP BOXES
Temporary 3.0 Cubic-Yard Bin ............................................... $146.08
Redelivery and Reinstatement ................................................ $ 33.10
Roll-Off Disposal Bin .............................................................. $242.27
(Plus Landfill/Recycling Fee)
Roll-Off Recycling Bin ............................................................. $242.27
(Market Value Negotiable)
Roll-Off Compactor ................................................................. $484.55
(Plus Landfill/Recycling Fee)
Roll-Off Recycling Compactor ................................................ $484.55
(Market Value Negotiable)
MISCELLANEOUS SERVICES
A. Scout Service .................................................................... Case by Case
B. Special Bin Lids (Locking/CBL) (one-time fee) .................. $ 37.39
C. Deodorizing/Replacing Bin (1x per calendar year) ............ No Charge
D. Additional Deodorizing/Replacing Bin ............................... $ 37.39
E. Charge for Returned Checks ............................................. $ 18.70
F. Charge for Delinquent Payments ...................................... $ 6.23
G. Credit Card Convenience Fee (by Phone) ........................ $ 6.23
H. Extra Pick Up .................................................................... $ 3.90 per bag
$ 6.48 per cart
I. Extra Collection on Non-Scheduled Pick Up Day .............. $ 32.46
J. Residential Cart Re-Delivery Fee ...................................... $ 33.10
K. Temporary Roll-Off Extra Day Fee .................................... $ 12.56 per day
(post 7 days, trash only)
L. Temporary 3.0 Cubic-Yard Bin Rate ................................. $ 12.56 per day
(post 7 days, trash only)
M. Permanent Customer Roll-Off Extra Day Fee ................... $ 12.59 per day
(post 30 days, trash only)
N. Solid Waste Bin Locking/Unlocking Fee ............................ $ 25.19 per month
O. Overage Fee ..................................................................... $ 10.58
P. Contamination Fee ............................................................ $105.75
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