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HomeMy WebLinkAboutAGENDA REPORT 1989 0419 CC REG ITEM 11D 33 2. MOORPARK ITEM 11 .11 ELOISE BROWN PPpPK cq`� STEVEN KUENY Mayor o0,~`=9 City Manager BERNARDO M. PEREZ f �° CHERYL J. KANE Mayor Pro Tern ��� City Attorney CLINT HARPER, Ph. D. �`��• PATRICK RICHARDS, A.I.C.P. Councilmember o o Director of PAUL LAWRASON 9 � 0 Community Development Councilmember R.�'` R. DENNIS DELZEIT SCOTT MONTGOMERY City Engineer Councilmember JOHN V. GILLESPIE RICHARD T. HARE Chief of Police City Treasurer MEMORANDUM TO: The Honorable City Council FROM: Steven Kueny, City Manager a"/-, DATE: April 14, 1989 SUBJECT: REFUSE FRANCHISE At the present time, the City does not regulate the collection or disposal of solid waste. In light of the recent rate increases at. the Simi Valley landfill and the recently enacted state requirement to reduce by 20% the amount of waste disposed at landfills, it may be time to reconsider the City' s position on this matter. The City of Thousand Oaks currently has 3 exclusive franchise agreements for residential collection and 4 for commercial collection. Current residential collection rates in Thousand Oaks are $9.25 per month. The City has established a citizen' s committee to review rate increase requests. At the present time, an increase of $1.80 per month to $11.05 is pending. The increase is in response to Simi Valley Landfill ' s tipping fee increase. The City of Simi Valley currently has 2 exclusive franchise agreements for residential collection and issues a maximum of 15 permits for commercial refuse collection. Residential collection rates in Simi Valley are $9.25 per month. Commercial refuse rates in Simi Valley are not regulated and haulers are required to only pay a business license tax. The City does not anticipate any landfill increase pass-through, at least until June, due to a franchise agreement provision, which states that landfill increases will not be passed through until 90 days after the increase has been announced. K A, 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 The Honorable City Council April 14, 1989 Page 2 By contrast, Moorpark' s residential collection rates have already risen from $11. 50 to $13. 50 as a result of the tipping fee increases at the Simi Valley Landfill . It is unclear whether a franchise agreement is responsible for lower refuse collection rates in Simi Valley and Thousand Oaks. It should be noted that in addition to charging lower rates, haulers are also required to pay a franchise fee (3 percent in Thousand Oaks and 4 percent in Simi Valley of gross receipts) to the cities. The reason most cities enter into refuse franchise agreements is to exercise control over the collection of refuse. A refuse franchise agreement typically includes the following requirements: permitted days and hours of operation, pick-up rates, type of equipment used, franchise fees, recycling requirements, wage rates, community clean-up days, complaint resolution procedures and penalty clauses. With an exclusive franchise agreement, only one hauler would be allowed to operate in the city or in a section of the city. For residential collection, Simi Valley is divided into two zones while Thousand Oaks is divided into three zones. The rates are identical in each zone regardless of the hauler. With a non-exclusive franchise agreement multiple haulers could operate in the same city or zone and charge different rates. Competition among the haulers would keep rates low. Staff in the Cities of Simi Valley and Thousand Oaks report that a considerable amount of staff time is spent responding to customer complaints, monitoring the haulers' performance, and reviewing requests for annual rate adjustments. These expenses are recovered through the franchise fee. Prior to the City' s incorporation, the County of Ventura did not issue franchises or permits for refuse collection. The County currently does not regulate waste haulers in the unincorporated areas except for the standard permit that is required by Environmental Health for every waste hauler in the county, regardless of the service area. Mandatory collection is another item that should be considered if the decision to franchise is made. A mandatory collection ordinance would require all residential , commercial , and industrial property owners to contract with only a city-approved hauler for the removal of refuse. Refuse haulers are guaranteed customers with this type of ordinance. (Simi Valley does not have a mandatory collection ordinance but Thousand Oaks does) . The Honorable City Council April 14, 1989 Page 3 In conclusion, the following issues are relevant to the discussion of a refuse franchise: 1. Whether to franchise 2. Whether the franchise will be exclusive or non-exclusive 3. Whether multiple haulers will be franchised 4. Whether the franchise will include commercial collection 5. Whether a mandatory collection ordinance will be enacted 6. The amount of the franchise fee If the City Council wants to consider a refuse franchise, contract, or permit system, staff should develop an RFP for the Council ' s consideration. This process is estimated to take from 6 to 8 weeks and will require the assitance of the City Attorney. $ 5000 is estimated for the City Attorney' s participation in this effort. Staff Recommendations 1) Direct staff to prepare an RFP for refuse collection for City Council ' s consideration. 2) Appropriate $5000 from the general fund reserve for the City Attorney' s participation in this project (roll call vote is required). MOu.:?ARK, CALIFORNIA City Council Meeting SC/1 s of 47/-/9 198 1 DCM.8941211 ACTION: G0 -ry By___5:�.