HomeMy WebLinkAboutAGENDA REPORT 1995 0920 CC REG ITEM 11CAGENDA REPORT
CITY OF MOORPARK
TO: Honorable City Council
FROM: Jill R. Myers, Solid Waste Coordinator WM
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DATE: September 14, 1995 (CC Meeting of September 20, 1995)
SUBJECT: Consider Solid Waste Exclusive Residential and Commercial
Franchise Agreements with G.I. Rubbish and Moorpark
Rubbish Disposal and Adopt Resolution 95- Establishing
Service Rates, Rescinding Resolutions 94 -1091 and 95-
1105.
SUMMARY
The City Council is being asked to consider approving the proposed
franchise agreement (subject to final language approval by the City
Attorney and City Manager) with G.I. Rubbish and Moorpark Rubbish
Disposal (Anderson) for exclusive collection, processing, and
disposal of residential and commercial (including roll -off service)
solid waste and recyclables. The City Council is also being asked
to consider adopting Resolution 95- setting rates for January
1996 which include a reduction in the residential single - family
rates, the establishment of a discounted "Super Recycler" rate, and
setting of the commercial service rates.
BACKGROUND
As you are aware, Moorpark has a franchised system for solid waste
collection services. In 1990, the City awarded exclusive franchise
agreements to Moorpark Rubbish Disposal and G.I. Rubbish for
residential service and each hauler services a designated
residential area or zone. In 1991, the City awarded nonexclusive
franchise agreements for commercial refuse collection. A
commercial customer may select any of the four franchised
commercial haulers (Moorpark Rubbish Disposal, E.J. Harrison and
Sons, G.I. Rubbish, and Rubbish Control) to provide service.
Service fees are negotiable, however, the City sets the maximum
rates that a commercial hauler may charge.
The commercial franchise agreements were originally due to expire
on June 30, 1994. However, the City Council approved a two six -
month term extensions to allow the agreements to expire at the same
time as the residential agreement, on June 30, 1995. In
anticipation that the current negotiations with the haulers would
not conclude by June 30, 1995, the City Council (on June 21, 1995)
approved a three month extension to both the residential and
commercial agreements. Both agreements are due to expire on
September 30, 1995.
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The City also offers Temporary Refuse Collection Permits on an
annual basis, October 1 - September 30. Temporary service is that
which is provided on a nonregularly scheduled basis. Service to
construction, demolition, and landclearing projects would be
typical types of temporary service. Four haulers currently hold
Temporary Permits - Moorpark Rubbish Disposal, Browning- Ferris
Industries (BFI), E.J. Harrison and Sons, and G.I. Rubbish. The
permits are due to expire on September 30, 1995. It is proposed to
include temporary service in with commercial service for the new
agreements.
At the City Council meeting on February 15, 1995, the City Council
directed an Ad Hoc Committee (currently Councilmembers Hunter and
Wozniak) to negotiate exclusive franchise agreements with Moorpark
Rubbish Disposal and G.I. Rubbish to provide both residential and
commercial (including roll -off) collection services.
The City Council also indicated it will continue to accept and
review other information presented by Browning- Ferris Industries
(BFI) and others. On August 31, 1995, BFI requested and received
records regarding the franchise negotiations. As of September 13,
1995, the City has not received any other information from BFI or
other haulers relative to this matter.
Additionally, the City Council directed staff to delay the PRC
hauler notification until a final contract is presented to the City
Council. California Public Resources Codes (PRC) , Sections 49520
and 49521, address the legal authority for local agencies to grant
exclusive franchises and hauler notification requirements. The
City Attorney has advised staff that when Moorpark changes from the
current nonexclusive commercial franchise system to an exclusive
commercial franchise system, the City must notify the other haulers
of it's intent to award exclusive commercial franchises. In this
case, E.J. Harrison and Rubbish Control may continue to provide
services up to five years after receiving mailed notification,
since they have been franchised in Moorpark for more than three
years. These haulers will have to adhere to the negotiated
franchise obligations and rate schedules set by the Council.
The PRC notification will also apply to the franchised commercial
hauler (E.J. Harrison) who has been issued a Temporary Collection
Permit. A nonfranchised hauler, BFI, has been issued a Temporary
Collection Permit. Because the current cycle of Temporary
Collection Permits expire on September 30, 1995, and BFI has been
permitted for less than three years ( since 1994) , the five year PRC
notice does not apply. BFI must discontinue providing service upon
the expiration of the current Temporary Collection Permit cycle.
A total of four negotiating sessions were held with hauler
representatives, City staff, and the Ad Hoc Negotiations Committee.
The final Ad Hoc Negotiations Committee meeting with the haulers
occurred on August 31, 1995.
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Agreement Highlights
Key components of the proposed agreement include a fixed term of
five and one - quarter (5.25) years with a possible three (3) year
extension, an annual index rate adjustment process, hauler
performance measures, AB 939 indemnification, and various community
benefit services offered by the haulers, such as residential green
waste collection and annual curbside collection of bulky items at
no additional charge.
As previously stated, it is proposed that the residential rates be
decreased and that fixed commercial rates be established. Staff
anticipates a slight increase in franchise revenues to the City,
due to the setting of the commercial rates. The haulers project an
increase in their commercial billing revenues and indicated that
their increased commercial revenues allowed for the reduction in
the residential service rates.
The same agreement will apply to both haulers. Specific services
are outlined in the "Scope of Services" exhibits of the attached
agreement. Below, is a listing of the major issues to be included
in the proposed agreement. These items differ from what is
included in the current agreements.
1. Effective October 1, 1995, the term of the franchise will be
5.25 years with one three year renewal option that can be
exercised by the City.
2. Effective January 1, 1996, the new monthly rates for
residential service will be $16.30 (20% discounted rate for
senior citizens and "super recycler /mini -can" rate) , including
green waste.
Monthly Residential Rates (See agreement rate schedule for
detail) .
Current Rate
Regular 17.40
Senior Rate 14.10
Super Recycler/
Mini -can Rate n/a
Proposed Rate
Incl. Green Waste
$16.30
$13.04
$13.04
Rate Reduction
($1.10)
($1.06)
n/a
Regular residential customers will be allowed to put out up to
four - 45 gallon containers in any combination of solid waste
and green waste. Unlimited recycling to continue. Super
Recycler rates limit a residential customer to one solid waste
container, one green waste container, and unlimited recycling.
The Senior discounted rate (62 years old and above) limit a
residential customer to two solid waste containers, one green
waste container, and unlimited recycling.
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3.
4.
It is also proposed to remove the discount for "Multi- family
Zone" can rates. Only Zone 1, Villa Del Arroyo (16.24 regular
rate) will incur an increase, $0.06 per month. Many residents
in Zone 1 receiving the senior discounted rate will have a
decrease of $1.06 per month.
Commercial rates will also be effective January 1, 1996
Monthly Commercial Rates (see agreement rate schedule).
Current Rates Hauler Proposed
Not to Exceed Set Rates
1.5 cu (lx)
$81
$83.20
3.0 cu (lx)
$108
$93.60
1.5 cu (2x)
$129.60
$145.59
3.0 cu (2x)
$167.40
$166.39
A separate rate schedule is included for temporary drop box
and roll -off service. Haulers will propose which commercial
areas and /or accounts they plan to service for City approval.
The proposed monthly commercial rates (itemized in detail in
the attached resolution) are the same rates set for commercial
service in Simi Valley. Commercial rates in Thousand Oaks
vary as only the maximum amount is established. However, the
monthly maximum amount for a three cubic yard bin serviced
once weekly in Thousand Oaks is set at $94.40, compared to the
haulers' proposed rate of $93.60.
The monthly commercial recycling and /or green waste collection
rate will be discounted forty -four percent (44 %) from the
commercial regular rate.
5. Annual Consumer Price Index (CPI) and Landfill Tipping
Adjustment: It is proposed that a simplified and more cost
effective CPI index system, commonly used by other
jurisdictions, be used to adjust the rates from 1997 forward.
The index portion of the rate adjustment will not be applied
to the rates effective January 1, 1996. The 1996 rates may be
adjusted pending County rate adjustments to the landfill
tipping fees and decreases in regulatory (CIWMP) fees.
(1) CPI Formula: (Rate x 86 %) x CPI
(2) Landfill tipping fee methodology:
Residential Rate - $0.45 per $1.00 /ton landfill increase
times current City published residential recycling (less
yard waste) diversion rate. (For example, a $1.00
landfill increase with a 25% diversion rate would equal:
$.45 x 1 = $ .45 x 25% _ $.11 - $ .45 = $0.34 rate
increase.)
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Non - Residential Rate - $0.90 per $1.00 /ton landfill
increase times current City published nonresidential
recycling diversion rate less yard waste, concrete, and
asphalt. (For example, a $1.00 landfill increase with a
25% diversion rate would equal: $.90 x 1 = $ .90 x 25%
_ $ .23 - $ .90 = $ .67 rate increase.)
Extraordinary costs language was provided and the haulers
propose that the senior rate adjustment percentage be
comparable to the percentage adjustment authorized for all
other customers.
Currently, the formula for determining an adjustment to the
monthly residential refuse rate is calculated by combining
three cost components - the Producer Price Index (PPI), Simi
Valley Landfill Rate, and Diesel Fuel average cost per gallon.
The above costs are weighted to reflect the representative
portion of overall expenses for each hauler.
6. Franchise fees: The 16% franchise /AB 939 fee will be applied
to all commercial revenue collected monthly. The franchise /AB
939 fee will not be applied on the landfill portion for roll -
off service accounts. The existing commercial franchise /AB 939
fee is 18% (10% franchise fee and 8% AB 939 fee) and was
applied to the landfill portion of the roll -off rate. Of the
proposed 16% franchise /AB 939 fee, eight percent (8 %) will
continue to be designated as the AB 939 fee. The remaining
eight percent (8 %) will be designated towards the franchise
fee, resulting in a two percent (2 %) decrease from the current
franchise fee.
The residential franchise fee will remain the same at 4% and
the AB 939 fee of $1.00 per household will not change.
7. Submission of Franchise Fees: Haulers will remit franchise
and AB 939 fees on a monthly basis, rather than the current
quarterly basis.
8. Residential Billing Cycle: The haulers will modify the
residential billing cycle. The bill will be due fifteen days
after the end of the first month. (Currently, the bill is due
before the end of the first month.) A return envelope will be
provided. Delinquent notices will be sent fifteen days after
the end of the second month. Service may be cut -off at the
end of the third month.
9. Green Waste Collection: Green waste collection will be
implemented in January 1996. Targeted implementation is
planned to coincide with the curbside christmas tree recycling
program. Christmas tree recycling to include the provision of
bins to multi - family complexes at a reduced rate and the
continuation of one drop -off location to be provided, at no
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cost. Haulers will continue providing curbside christmas tree
service at no cost. Residents may place trees outside a green
waste recycling can.
10. Bulky Item /Clean -up Day: Haulers will provide at no cost, one
curbside bulky item collection of up to two items per
household, on an annual basis, effective January 1, 1996. The
haulers will provide at no cost a Fall 1995 clean -up day
event. Staff to promote future "free" days at the Simi Valley
Landfill, in place of clean -up events. Haulers may provide
future clean -up day events at a cost to be determined.
11. AB 939 Indemnification: Haulers will indemnify the City
against any and all fines levied by the State as a result of
the failure of the hauler to meet the required AB 939 goals.
12. Complaint Reimbursement: In the event that the haulers can not
resolve a legitimate service - related complaint and the
customer contacts the City for resolution, the haulers will
reimburse the City for all reasonable labor and materials
directly expended by the City in resolving the complaint
against the haulers.
13. Performance Standards: Although service levels have been
generally high with the existing haulers, it is important to
have a mechanism in place to prevent any declines in service.
In the event that the City becomes aware of specified
violations (failure to submit reports, discourteous behavior,
excessive noise, early starts, missed collections, etc.), the
City shall provide written notice to the haulers. In the
event that a violation occurs, a fee of $100 for the first
violation and $500 if the same violation occurs any time
within the 12 month period will be assessed on the haulers.
The City Manager will provide written notice of the violations
and upon verification, the haulers will submit fines with the
franchise fees.
14. Definitions: In consideration of the Rancho Mirage Court
Case, the definition of "discards" indicates solid waste
(including street sweeping waste) , yard waste, and recyclables
which have been abandoned or discarded and placed for
collection by the owner of such material or their agent, are
to be collected by the City's franchised hauler.
15. Change in Scope: When new services are to be considered, the
City may request to receive proposals from the haulers (within
120 days of notice) to determine potential costs to implement
new waste reduction and efficiency programs. After "good
faith" efforts, if the haulers are unable to develop and /or
implement a City requested waste reduction program, the City
may select an alternative service provider for that specific
service request.
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16. Flow Control: Due to recent Court decisions, the ability to
control and direct solid waste to a designated facility as
part of a franchise agreement is still allowed.
17. Promotion Assistance: At no cost, the haulers will purchase
frames to be placed on the sides of the collection vehicles
for program advertisements, assist with media promotion, and
produce a newsletter. City will review all materials.
18. Compost Bin and Motor Oil Receptacle Distribution Program: At
no additional cost to the City, haulers to promote and
distribute as many compost bins and new reusable motor oil
recycling bins each calendar year as requested by the City.
19. Identification of Non - recyclers: Within 90 days of the
effective date of the Agreement, haulers will develop and
implement, upon approval by the City, a program designed to
encourage participation in the City's residential curbside
recycling program for residents not participating as of the
date of this agreement. Haulers will also work to reinforce
participation with residents participating on a regular basis.
Such efforts may include conducting periodic waste audits at
identified residences, offering participation incentives, and
sponsoring contests to award program participants. Haulers
will also develop and implement a program to increase and
reinforce recycling participation at multi- family residential
complexes and commercial areas. Such programs will be
conducted at a minimum of two times per year.
20. Multi- family Recycling Bins and Pails: Bins shall be
specifically designed for recycling in order to reduce
material theft and product contamination. Decals shall be
affixed to such bins identifying materials to be deposited in
City's program and /or other information pertaining to the
contents of the bin.
Haulers to provide, at no cost to City, individual recycling
discards pails to multi - family residents upon request by the
City. The City shall approve the size and type of recycling
discards pail the hauler provides to residents. Discard
recycling pails shall become the property of hauler.
21. Special Events. Haulers to jointly share equally in the costs
to provide the equivalent of 200 cubic yards of discard bin
collection and transportation service including all landfill
fees, at no charge to the City, for community and special
events (i.e., Hazardous Waste Collection Events, Labor Day in
the Park, Fourth -of -July, non - profit litter reduction efforts,
etc.) every calendar year, as directed by the City Manager.
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22. Newspaper Drop -Off Program: (Continuation) Haulers responsible
for maintaining cleanliness of site, including application of
informative container decals and prompt removal of graffiti.
23. Collection from City Facilities: At no charge, haulers to
furnish sufficient receptacles, as determined by the City, for
collection of discards, source separated recyclable and
compostable materials at every facility owned or operated by
the City, in the hauler's service area, and remove the
contents of these containers (at no cost) on a schedule
approved by City.
24. Public Area Collection: At no cost, each hauler will provide
solid waste and recyclable discards collection service from
barrels not to exceed 45 gallons in capacity placed on public
right -of -way at no more than 10 locations designated by the
City (20 locations total).
25. Spill Clean Up. Haulers to clean -up all spills of discarded
waste occurring during the collection process immediately upon
the occurrence of the spill. Haulers to close any gates after
making collections.
The proposed agreement has been previously provided to the City
Council. The attached agreement illustrates deviations from our
current agreements by use of bold text for new items and strike-
outs for deleted or moved items.
The proposed agreement is still being reviewed by the City Manager,
City Attorney, and haulers. Because final language approval is
pending and that the current agreements expire on September 30,
1995, the City Council may want to reserve approval of the
agreements until the regularly scheduled City Council meeting on
October 4, 1995. In this case, the current agreements will need to
be granted a five (5) day extension.
Staff feels that if the City Council concurs with the various
points of the agreement as recommended by the Committee and staff,
the agreement can be approved on September 20, 1995 subject to
final language approval by the City Manager and City Attorney.
CONCLUSION
Of the many objectives that were guiding principles in negotiating
the proposed agreement, the Ad Hoc Committee was committed to
negotiating an agreement that provided for the continuation of the
current high level of service, a rate reduction to residents,
increasing the provision of hauler services without additional
charge to the community, and assurance that the City and haulers
will meet waste reduction and other regulatory mandates.
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In concluding the negotiations, the haulers indicated that they
agree to waive their 1995 request for a residential recycling rate
increase of $0.15 per month. As you may recall, on January 31, the
Public Works, Facilities, and Solid Waste Committee (Councilmembers
Montgomery and Wozniak) suggested that the residential haulers
forgo the requested monthly recycling rate increase until after the
conclusion of the contract negotiations, recognizing that the
haulers may have the opportunity, if necessary, to retroactively
recapture all or part of their requested recycling fee increase.
Again, the haulers chose to forgo their proposed increase.
The attached resolution itemizes the proposed rate schedule for
1996. The resolution may be amended later this year pending
confirmation of any regulatory fee increase /decreases and the
County's adjustments to the Simi Valley Landfill tipping fee.
RECOMMENDATION (Roll Call Vote)
The Ad Hoc Negotiations Committee and staff recommend that the City
Council:
1. Approve the Solid Waste Exclusive Residential and
Commercial Franchise Agreements with G. I. Rubbish and
Moorpark Rubbish Disposal, subject to final language
approval by the City Manager and City Attorney;
2. Adopt Resolution 95- Establishing Service Rates,
Rescinding Resolutions 94 -1091 and 95 -1105; and
3. Issue PRC notification to the remaining commercial
franchised haulers, E. J. Harrison and Rubbish Control, of
the Council's intent to award exclusive franchises,
effective October 1, 1995.
Attachment
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000132
RESOLUTION NO. 95-
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF MOORPARK, CALIFORNIA,
RESCINDING RESOLUTIONS 94 -1091 AND
95 -1105, UPDATING SOLID WASTE
COLLECTION FEES.
WHEREAS, it is appropriate for the City to establish fees relative
to collection and management of solid waste collection; and
WHEREAS, the City provides weekly curbside residential solid waste
and recycling collection services; and
WHEREAS, on September 20, 1995, the City Council granted exclusive
franchise agreements with G.I. Rubbish and Moorpark Rubbish
Disposal for the collection, transportation, recycling, disposal of
discards, construction and demolition debris, and for providing
temporary bin and roll -off drop box services in residential,
commercial, construction, and industrial areas within City limits;
and
WHEREAS, the City Council declares its intention of maintaining
reasonable rates for collection, management, and disposal of solid
waste and recyclables within the City limits; and
WHEREAS, the City Council adopted Resolution 94 -1091 establishing
solid waste collection fees; and
WHEREAS, Resolution 95 -1105 amended Section 1 of Resolution 94 -1091
for the purpose of updating monthly multi - family can service rates
in Zone III to equal the rates for single - family service as stated
in Section 1 of Resolution 94 -1091, effective March 1, 1995;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK,
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. The monthly residential solid waste, recycling,
and green waste discards collection rate, effective January 1, 1996
shall be as follows:
Single Family Service
(Individual can service)
Senior Citizen Rate
(20% discount on SF total rate)
Super Recycler Rate
(20% discount on SF total rate)
Base Rate AB 939 Total
$15.30 $ 1.00 $16.30
$12.04 $ 1.00 $13.04
$12.04 $ 1.00 $13.04
SECTION 2. The commercial, industrial, and multi - family
solid waste, recycling, and composting discards bin collection
rates, effective January 1, 1996 shall be as follows:
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1.
2.
Discard Bin Rates
A. One (1) 1.5 cubic yard bin with following pickups per
week:
1 x week $ 83.20
2 x week $145.59
3 x week $207.99
4 x week $270.38
5 x week $322.78
6 x week $395.17
7 x week $457.58
Non - contracted 1.5 Cubic Yard pickup: $ 31.20
(Special onetime pickup for permanent accounts)
Compacted 1.5 Cubic Yard pickup: 2 X weekly pickup rate
B. One (1) 3.0 cubic yard bin with following pickups per
week:
1 x week $ 93.60
2 x week $166.39
3 x week $239.19
4 x week $311.98
5 x week $384.78
6 x week $457.58
7 x week $530.36
Non - contracted 3 Cubic Yard pickup: $ 36.39
(Special onetime pickup for permanent accounts)
Compacted 3 Cubic Yard pickup: 2 X weekly pickup rate
Recycling /Composting Bin Rates
A. One (1) 1.5 cubic yard bin with following pickups per
week:
1 x week $ 41.59
2 x week $ 83.20
3 x week $124.79
4 x week $166.39
5 x week $207.99
6 x week $249.58
7 x week $291.18
Non - contracted 1.5 cubic yard pickup: $ 26.00
(Special onetime pickup for permanent accounts)
B. One (1) 3.0 cubic yard bin with following pickups per
week:
1 x week $ 51.99
2 x week $104.00
3 x week $155.99
4 x week $207.99
5 x week $259.98
6 x week $311.98
7 x week $363.98
Non - contracted 3 Cubic Yard pickup: $ 31.20
(Special onetime pickup for permanent accounts)
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C. One (1) 4.0 cubic yard bin with following pickups per
week:
1 x week $ 62.39
2 x week $124.79
3 x week $187.18
4 x week $249.58
5 x week $311.98
6 x week $374.38
7 x week $436.77
Non - contracted 4 Cubic Yard pickup: $ 36.39
(Special onetime pickup for permanent accounts)
SECTION 3. The temporary bins and roll -off drop box solid
waste, recycling, and composting discards bin collection rates,
effective January 1, 1996 shall be as follows:
Temporary 3 Cubic Yard Bin Rate:
$ 72.80
Redelivery and Reinstatement Rate:
$ 25.00
Roll -off Disposal Rate:
$139.35
plus landfill/
recycler
fee
Roll -off Recycling Rate:
$139.35
(market value
negotiable)
Roll -off Compactor Rate:
$278.70
plus landfill/
recycler
fee
Roll -off Recycling Compactor Rate:
$278.70
(market value
negotiable)
SECTION 4. The annual solid waste management fee for
exemption to the required solid waste collection service mandate
shall be $22.00.
SECTION 5. This Resolution hereby rescinds Resolutions 94-
1091 and 95 -1105 in their entirety.
APPROVED and ADOPTED this day of September, 1995.
ATTEST:
City Clerk
3
Mayor
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