HomeMy WebLinkAboutAGENDA REPORT 2021 1117 CCSA REG ITEM 08ACITY OF MOORPARK, CALIFORNIA
City Council Meeting
of November 17, 2021
ACTION ADOPTED RESOLUTION NO.
2021-4053. (VOICE VOTE: UNANIMOUS)
BY B. Garza.
A. Public Hearing to Consider a Resolution Establishing New Maximum Solid Waste
Rates to be Effective January 1, 2022, and Rescinding Resolution No. 2020-3973.
Staff Recommendation: Adopt Resolution No. 2021-4053, adopting new maximum
solid waste rates to be effective January 1, 2022, and rescinding Resolution No.
2020-3973. (Staff: Mack Douglass, Program Manager)
Item: 8.A.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Kambiz Borhani, Finance Director
BY: Mack Douglass, Program Manager
DATE: 11/17/2021 Regular Meeting
SUBJECT: Public Hearing to Consider a Resolution Establishing New Maximum
Solid Waste Rates to be Effective January 1, 2022, and Rescinding
Resolution No. 2020-3973
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 Nos. 2019-3866 and 2020-3973, increasing the maximum
allowable solid waste rates for 2020 and 2021, respectively.
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 (Waste Management) to request an
increase in the maximum rates on or before October 1 of each year. Sections 5.3.1 (B)
and (C) of the franchise agreement provide two mechanisms that are used in conjunction
to calculate annual rate increases. Section 5.3.1 (B) ties any annual increase to 70% of
the September-September Consumer Price Index (CPI) for the Los Angeles area. Section
5.3.1 (C) of the franchise agreement allows for an additional annual increase element that
is computed as 30% of any increase in the “tipping fee” (fees charged by the landfill to
accept waste). In turn, prior year base rates are multiplied by the adjusted CPI increase
Item: 8.A.
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Honorable City Council
11/17/2021 Regular Meeting
Page 2
and adjusted tipping fee rate to arrive at a new base rate. Finally, state-mandated AB 939
fees (which fund community solid waste events such as E-waste and Paper Shredding)
and the City’s franchise fee (6% of gross receipts for residential service, and 8% of gross
receipts for commercial service) are added and bring us to the final proposed rate. These
annual adjustments are capped at no more than 5% annually by Section 5.3.1 (D) of the
Franchise Agreement.
A framework also exists within Franchise Agreement to allow USA Waste (Waste
Management) to apply for an “extraordinary adjustment” of greater than 5%. In order to
pursue an “extraordinary adjustment,” the franchisee must demonstrate that their
operational costs have increased substantially to the City Council. In the event that an
extraordinary increase is granted, it would be calculated similarly to an annual adjustment,
except that the full September-September CPI figure would be substituted in place of the
70% adjusted CPI increase.
For 2022, USA Waste is requesting an annual adjustment only 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. No extraordinary increase is
being sought at this time.
The proposed adjustment amounts to $1.35 per month (equivalent to 3.86%) for the
standard residential solid waste service rate. The proposed commercial bin rates call for
a similar increase of approximately 4%. If approved, these new rates would become
effective January 1, 2022.
This represents a larger rate increase than that approved by City Council Resolution
No. 2020-3973, which saw an increase of approximately between 2.4% for residential
customers and commercial customers. The proposed rate increase is in line with a
significant increase (4.6%) in the September 2020 – September 2021 Consumer Price
Index (CPI). Tipping fees at the Simi Valley Landfill and Recycling Center (SVLRC) are
governed by an agreement between the County of Ventura and Waste Management and
are themselves tied to September – September CPI. Moorpark customers continue to
enjoy a “Volume Discount” rate afforded to municipal solid waste customers. This “volume
discount” means that municipal solid waste customers, including Moorpark rate payers,
are paying less per ton in tipping fees than those who self-haul their solid waste at the
Simi Valley Landfill and Recycling Center. The portion of the requested rate increase
derived from increased tipping fees at Simi Valley Landfill and Recycling Center is lower
(by approximately half) than in prior years, indicating successful efforts on behalf of the
Hauler and Landfill to control cost increases.
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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Honorable City Council
11/17/2021 Regular Meeting
Page 3
Table 1: Comparison of Moorpark Current and Proposed Rates
Customer Type Current Rate Proposed Rate Difference Percent Change
Residential, Standard
Service $35.00 $36.35 $1.35 3.86%
Commercial Trash
(3.0-cu. yd. bin, 1x/
week)
$184.49 $191.86 $7.37 3.99%
Commercial Recycling
(3.0-cu. yd. bin,
1x/week)
$138.52 $142.98 $4.46 3.22%
It is to be expected that solid waste service rates differ between cities. For example, while
Moorpark utilizes certain sizes of waste carts for residential standard service, (64-gallon
carts for trash and recycling with a 96-gallon cart for green material), Simi Valley services
use 71-gallon carts for all three categories in standard service. Nevertheless, the
proposed maximum allowable rates places Moorpark $0.14 above Simi Valley for
standard residential service. Table 2 provides a comparison of proposed rates with those
of our nearest neighboring City. It should be noted that Waste Management will no longer
be servicing the City of Thousand Oaks in 2022; consequently, proposed rates from
Waste Management for Thousand Oaks are not available.
Table 2: Comparison of Moorpark 2022 Proposed Rates to
City of Simi Valley Proposed 2022 Rates
Customer Type Moorpark
Proposed Rates
Simi Valley
Proposed
Rates
Residential, Standard Service $36.35 $36.21
Commercial Trash
(3.0-cu. yd. bin, 1x/ week) $191.86 $174.06
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.
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Honorable City Council
11/17/2021 Regular Meeting
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COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION
Adopt Resolution No. 2021-____, adopting new maximum solid waste rates to be
effective January 1, 2022, and rescinding Resolution No. 2020-3973.
Attachment 1: Letter from USA Waste (Waste Management) dated October 30, 2021
(note date on letter is incorrect; letter was received on 10/14/2021)
Attachment 2: Letter from County Ventura to Simi Valley Landfill approving proposed
2022 tipping fees
Attachment 3: Draft Resolution No. 2021-____
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ATTACHMENT 1
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ATTACHMENT 2
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ATTACHMENT 3
RESOLUTION NO. 2021-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, UPDATING THE SOLID
WASTE COLLECTION SERVICE FEE SCHEDULE AND
RESCINDING RESOLUTION NO. 2020-3973
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 2022 rate increase
in compliance with the Franchise Agreement; and
WHEREAS, at a duly noticed public hearing on November 17, 2021, 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, 2022.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Effective January 1, 2022, 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, 2022.
SECTION 4. Resolution No. 2020-3973 is hereby rescinded in its entirety upon
the effective date of this resolution.
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Resolution No. 2021-____
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 17th day of November, 2021.
________________________________
Janice S. Parvin, Mayor
ATTEST:
___________________________________
Ky Spangler, City Clerk
Attachment: Exhibit 1 – Maximum Rates Effective January 1, 2022
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Resolution No. 2021-____
Page 3
EXHIBIT 1 – MAXIMUM RATES EFFECTIVE JANUARY 1, 2022
Residential Service Rates
BASE SERVICE
Option A1: Regular Full Service Rate .............................................. $ 36.35 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) ............................. $ 30.38 29.27 per month
• 64-gallon trash cart
• 64-gallon recyclables cart
• 96-gallon yard trimmings cart
Option B1: 32-Gallon Service Rate .................................................. $ 30.67 29.53 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• 64-gallon yard trimmings cart
Option B2: Senior 32-Gallon Service Rate ....................................... $ 25.65 24.71 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• 64-gallon yard trimmings cart
Option C1: Limited/No Yard Trimmings Rate ................................... $ 25.15 24.23 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• No yard trimmings cart
Option C2: Senior Limited/No Yard Trimmings Rate ........................ $ 24.74 23.82 per month
• 32-gallon trash cart
• 64-gallon recyclables cart
• No yard trimmings cart
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Resolution No. 2021-____
Page 4
SERVICE UPGRADES
1.Trash Service Upgrades
a.Upgrade trash cart from 32-gallon to 64-gallon ............ $ 3.81 3.66 per month
(Only available with Options C1, C2)
b. Upgrade trash cart from 64-gallon to 96-gallon ............ $ 3.81 3.66 per month
(Only available with Options A1, A2)
c. Additional 64-gallon trash cart ..................................... $ 6.36 6.12 per month
(Only available with Options A1, A2)
d. Additional 96-gallon trash cart ..................................... $ 10.19 9.80 per month
(Only available with Options A1, A2)
2.Recycling Service Upgrades
a.Upgrade recycling cart from 64-gallon to 96-gallon ..... $ 1.22 1.18 per month
b.Additional 64-gallon recycling cart ............................... $ 3.38 3.28 per month
c.Additional 96-gallon recycling cart ............................... $ 4.00 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. .... $ 2.52 2.43 per month
b. Additional 96-gallon yard trimmings cart ...................... $ 4.94 4.76 per month
OTHER CHARGES
Customer Service Level Changes .......................................... $ 6.39 6.19 per request
Move In/Move Out Service ..................................................... $ 21.37 20.56
Additional Bulky Item Pickup .................................................. $ 31.78 30.56 per item
(Two pickups of up to three items each per year are free)
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Resolution No. 2021-____
Page 5
Commercial Service Rates
DISCARD BIN RATES
Option A: One 1.5 Cubic-Yard Discard Bin
a.Pick up one time per week ................................................ $172.01 165.42 per month
b.Pick up two times per week ............................................... $291.04 279.87 per month
c.Pick up three times per week ............................................ $410.04 394.30 per month
d.Pick up four times per week .............................................. $528.96 508.67 per month
e.Non-contracted 1.5 cubic-yard pickup ............................... $72.86 70.07
f.Compacted 1.5 cubic-yard pickup ..................................... $344.04 330.83
Option B: One 3.0 Cubic-Yard Discard Bin
a.Pick up one time per week ................................................ $191.86 184.49 per month
b.Pick up two times per week ............................................... $330.68 317.99 per month
c.Pick up three times per week ............................................ $471.25 453.17 per month
d.Pick up four times per week .............................................. $608.30 584.96 per month
e.Pick up five times per week ............................................... $747.13 718.46 per month
f.Pick up six times per week ................................................ $885.93 851.94 per month
g.Non-contracted 3.0 cubic-yard pickup ............................... $82.79 79.61
h.Compacted 3.0 cubic-yard pickup ..................................... $383.69 360.55
Option C: One 4.0 Cubic-Yard Discard Bin
a.Pick up one time per week ................................................ $211.67 203.55 per month
b.Pick up two times per week ............................................... $370.23 356.02 per month
c.Pick up three times per week ............................................ $528.99 508.69 per month
d.Pick up four times per week .............................................. $687.63 661.26 per month
e.Pick up five times per week ............................................... $846.29 813.82 per month
f.Pick up six times per week ................................................ $1,004.99 966.44 per month
g.Non-contracted 4.0 cubic-yard pickup ............................... $92.63 89.07
h.Compacted 4.0 cubic-yard pickup ..................................... $423.32 407.08
64-Gallon Foodwaste Cart
a.Pick up one time per week ................................................ $72.70 69.92 per month
b.Pick up two times per week ............................................... $145.43 139.85 per month
c.Pick up three times per week ............................................ $218.17 209.80 per month
d.Pick up four times per week .............................................. $290.89 279.74 per month
e.Pick up five times per week ............................................... $363.60 349.64 per month
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Resolution No. 2021-____
Page 6
Green Waste
a.1.5 Cubic-Yard one time per week .................................... $ 101.80 97.89 per month
b.3.0 Cubic-Yard one time per week .................................... $ 146.19 140.58 per month
c.3.0 Cubic-Yard two times per week ................................... $ 292.26 281.05 per month
d.3.0 Cubic-Yard three times per week ................................ $ 438.55 421.73 per month
e.3.0 Cubic-Yard four times per week .................................. $ 584.58 562.15 per month
f.3.0 Cubic-Yard five times per week ................................... $ 730.87 702.83 per month
g.4.0 Cubic-Yard one time per week .................................... $ 182.10 175.12 per month
h.4.0 Cubic-Yard two times per week ................................... $ 364.26 350.29 per month
i.4.0 Cubic-Yard three times per week ................................ $ 546.37 525.42 per month
j.4.0 Cubic-Yard four times per week .................................. $ 728.57 700.62 per month
k.4.0 Cubic-Yard five time per week .................................... $ 910.64 875.71 per month
RECYCLING/COMPOSTING BIN RATES
Option A: One 1.5 Cubic-Yard Recycling or Composting Bin
a.Pick up one time per week ................................................ $99.56 96.45 per month
b.Pick up two times per week ............................................... $199.20 192.99 per month
c.Pick up three times per week ............................................ $298.71 289.40 per month
d.Pick up four times per week .............................................. $398.32 385.90 per month
e.Pick up five times per week ............................................... $497.88 482.36 per month
f.Pick up six times per week ................................................ $597.49 578.86 per month
g.Non-contracted 1.5 cubic-yard pickup ............................... $64.27 62.27
Option B: One 3.0 Cubic-Yard Recycling or Compost Bin
a.Pick up one time per week ................................................ $142.98 138.52 per month
b.Pick up two times per week ............................................... $285.85 276.93 per month
c.Pick up three times per week ............................................ $428.92 415.55 per month
d.Pick up four times per week .............................................. $571.74 553.92 per month
e.Pick up five times per week ............................................... $714.82 692.54 per month
f.Pick up six times per week ................................................ $857.75 831.01 per month
g.Non-contracted 3.0 cubic-yard pickup ............................... $90.82 87.99
Option C: One 4.0 Cubic-Yard Recycling or Compost Bin
a.Pick up one time per week ................................................ $178.10 172.55 per month
b.Pick up two times per week ............................................... $356.26 345.15 per month
c.Pick up three times per week ............................................ $534.37 517.71 per month
d.Pick up four times per week .............................................. $712.56 690.35 per month
e.Pick up five times per week ............................................... $890.64 862.88 per month
f.Pick up six times per week ................................................ $1,039.691007.27 per month
g.Non-contracted 4.0 cubic-yard pickup ............................... $112.05 108.56
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Resolution No. 2021-____
Page 7
TEMPORARY BINS/ROLL-OFF DROP BOXES
Temporary 3.0 Cubic-Yard Bin ............................................... $151.92 146.08
Redelivery and Reinstatement ................................................ $34.16 33.10
Roll-Off Disposal Bin .............................................................. $250.07 242.27
(Plus Landfill/Recycling Fee)
Roll-Off Recycling Bin ............................................................. $250.07 242.27
(Market Value Negotiable)
Roll-Off Compactor ................................................................. $500.14 484.55
(Plus Landfill/Recycling Fee)
Roll-Off Recycling Compactor ................................................ $500.14 484.55
(Market Value Negotiable)
MISCELLANEOUS SERVICES
A.Scout Service .................................................................... Case by Case
B.Special Bin Lids (Locking/CBL) (one-time fee) .................. $38.60 37.39
C.Deodorizing/Replacing Bin (1x per calendar year) ............ No Charge
D.Additional Deodorizing/Replacing Bin ............................... $38.60 37.39
E.Charge for Returned Checks ............................................. $19.31 18.70
F.Charge for Delinquent Payments ...................................... $6.43 6.23
G. Credit Card Convenience Fee (by Phone) ........................ $6.43 6.23
H.Extra Pick Up .................................................................... $4.07 3.90 per bag
$6.74 6.48 per cart
I.Extra Collection on Non-Scheduled Pick Up Day .............. $33.76 32.46
J.Residential Cart Re-Delivery Fee ...................................... $34.16 33.10
K.Temporary Roll-Off Extra Day Fee .................................... $12.96 12.56 per day
(post 7 days, trash only)
L.Temporary 3.0 Cubic-Yard Bin Rate ................................. $12.96 12.56 per day
(post 7 days, trash only)
M. Permanent Customer Roll-Off Extra Day Fee ................... $12.96 12.56 per day
(post 30 days, trash only)
N.Solid Waste Bin Locking/Unlocking Fee ............................ $26.00 25.19 per month
O. Overage Fee ..................................................................... $10.93 10.58
P.Contamination Fee ............................................................ $109.16 105.75
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