HomeMy WebLinkAboutAGENDA REPORT 2009 1118 CC REG ITEM 09C ITEM 9.C.
CITE OF MOORPARK,CALIFORNIA
City Council Meeting
MOORPARK CITY COUNCIL of oe g
ACTION: LLQ
AGENDA REPORT A J,
TO: The Honorable City Council 1 Lfh
FROM: Jennifer Mellon, Senior Management Analyst ,
DATE: November 5, 2009 (CC meeting of November 18, 2009)
SUBJECT: Consider Resolution Adjusting Solid Waste Collection Fees,
Consider Resolutions Amending the City of Moorpark Franchise
Agreements with G.I. Industries and Moorpark Rubbish
BACKGROUND
The City of Moorpark reviews and updates solid waste collection fees on an annual basis
with approved rate adjustments to take effect January 1. If approved, adjustments will be
made to solid waste collection fees as specified in the Franchise Agreements between the
City and the waste haulers. This January the City of Moorpark would like to look at the
standard solid waste rate adjustment as well as at the collected franchise fees received
from the franchise haulers.
Two components are used when considering the annual solid waste rate adjustment: the
Consumer Price Index (CPI) and the Simi Valley Landfill tipping fees. Per the City's
Franchise Agreements,the CPI factor used in the City's annual solid waste fee calculation
is based on 86% of the CPI increase for all consumers in the Los Angeles Urbanized Area
during the period September-September, less housing.The adjusted CPI factorfor2010 is
-1.5%. The second component is the landfill tipping fee. The County approved a landfill
rate increase effective January 1, 2010 with the disposal fee for discards increasing $1.50
per ton making the per ton cost$49.95; yard trimming discards fees are increasing $1.00
per ton making the per ton cost $36.00.
The City of Moorpark collects franchise fees from both franchise waste haulers. This
revenue is collected at a rate of 5% on residential accounts and 8% on commercial
accounts and has not been adjusted since the original franchise agreements were
approved in 1992. The City franchise agreements with both G.I. Industries and Moorpark
Rubbish Disposal currently require 5% residential and 8% commercial franchise fees;
however, the Moorpark Municipal code allows for a franchise fee to be collected of up to
8% for residential accounts. Franchise Fees are calculated based upon the hauler gross
revenues. A survey of franchise fees collected by surrounding jurisdictions finds that the
S:\Community Services\ADMINISTRATIVE\CC Reports\2009\11-18-2009(2010 SW Rate Adjustment).doc
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Honorable City Council
November 18, 2009
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Cities of Camarillo and Ventura collect 5% residential franchise fees, Simi Valley collects
an 8% residential franchise fee, and that Thousand Oaks is in the process of raising their
franchise fee from 5% to 8% as part of their adjustment for 2010.
As the discussion details, an increase in the City of Moorpark residential franchise fee from
5%to 5.5%, 6%, 7%or 8%would keep Moorpark in line with surrounding jurisdictions while
increasing general fund revenue.
DISCUSSION
Based on the CPI and landfill rate,the City's single family residential solid waste collection
rate will decrease by$0.13 per month,to$25.71, representing a 0.5%decrease(the 2009
adjustment was an increase of $1.35 or a 5.51% over the 2008 rate). Attachment "B"
shows the calculation in detail. The senior citizen and super recycler rates would decrease
by $0.13 per month as well to $19.01 per month, a 0.68% decrease.
By increasing the Franchise Fees (FF), rates would increase as would City general fund
revenue. The table below illustrates the changes in the residential rates with percentage
increases to the franchise fee. Automated Residential Service rate scenarios are below:
Proposed 2010 Rates Standard Standard +/-over Senior I Senior/ +I-over Limited Limited +/-over Est.Annual
Service FF Service 2009 Super Super 2009 Service FF Service 2009 General Fund
Rate Rate Recycler FF Recycler Rate Rate Rate Revenue-FF
urrnt2QQ9 Rates $1.23 $25.84 N/A $0,.90 $19:14 N/A $t):8.5` $18U7 N/A $143;000
2010 Standard Rate $1.23 $25.71
Calculation-Net Reduction ($0.13) $0.90 $19.01 ($0.13) $0.84 $17.91 ($0.16) $141,000
with 5.5%FF $1.35 $25.83 ($0.01) $0.98 $19.10 ($0.04) $0.92 $17.99 ($0.08) $157,500
with 6%FF $1.47 $25.95 $0.11 $1.07 $19.19 $0.05 $1.01 $18.08 $0.01 $172,000
with?%FF $1.72 $26.20 $0.36 $1.25 $19.35 $0.23 $1.17 $18.24 $0.17 $201,000
with 8%FF $1.96 $26.44 $0.60 $1.43 $19.55 $0.41 $1.34 $18.41 $0.34 $223,000
An additional option would be to adjust Residential AB 939 Fees which are collected from
residents to pay for AB 939 diversion programs including collection of Household
Hazardous Waste, Batteries, Fluorescent Lights, and Electronic Waste, as well as
Composting programs, sharps disposal, and most recently medication disposal. The
residential AB 939 fee was enacted in 1995 and has been$1.20 since inception. If Council
directs an option to keep Franchise Fees at 5% or increase Franchise Fees to 5.5% an
option would be to take the remaining negative balance from the rate reduction and direct
that money to AB 939 to keep rates flat. The current estimate of AB 939 residential
revenue for FY 09-10 is $123,000. Increases to the AB 939 fee would increase AB 939
revenue for diversion programs.
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Honorable City Council
November 18, 2009
Page 3
Costs for commercial accounts are projected to decrease slightly in most collection
scenarios. With schedules varying between 1 and 6 pick ups of discards perweek,of both
solid waste and recyclables, most commercial accounts are predicted to remain flat. There
are no proposed increases to commercial fees.
Staff recommends that Council Consider a franchise fee increase to be effective January 1,
2010 as part of the annual rate adjustment and would propose Council give authorization
for staff to proceed with the 6% option at this time. This increase would cause the
residential standard service rate to increase by 0.43%, senior/super recycler rate to
increase 0.26%, and the limited service (without yard waste) rate to increase 0.06% over
2009 rates. The residential and commercial rate adjustments are calculated in accordance
with the Franchise Agreements. The new rates will become effective January 1, 2010.
Attachment "A" is the rate resolution and proposed rate sheet.
Staff has begun the negotiation discussions with both Solid Waste Franchise Haulers
regarding their franchise agreements which expire on December 31, 2010. During these
negotiations staff will discuss options for future adjustments to franchise and other fees,
adding street sweeping scope of work, and additional service enhancements.
FISCAL IMPACT
The Solid Waste Rate adjustment, with an increase to the Franchise Fee from 5%to 6%,
will have a positive impact on the General Fund of about $29,000 annually. During the
remainder of Fiscal Year 2009/10 staff estimates an additional $14,500 in revenue.
STAFF RECOMMENDATION (ROLL CALL VOTE)
1. Adopt Resolution No. 2009- (2010 Solid Waste Collection Rate Resolution,
which includes an increase in the Residential Franchise Fee from 5% to 6%), and
2. Adopt Resolution No. 2009- Amendment to City of Moorpark Solid Waste
Franchise Agreement with G.1. Industries and Resolution No. 2009- Amendment
to City of Moorpark Solid Waste Franchise Agreement with Moorpark Rubbish Disposal
3. Authorize the City Manager to execute the amendments to the Agreements
Attachment"A"—2010 Solid Waste Collection Rate Resolution and Schedule of Rates to
take effect January 1, 2010
Attachment "B" — Solid Waste Fee Adjustment Worksheet
Attachment "C" — Resolution Amending the G.I. Industries Solid Waste Franchise
Agreement
Attachment "D" — Resolution Amending the Moorpark Rubbish Disposal Solid Waste
Franchise Agreement
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ATTACHMENT "A"
RESOLUTION NO. 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, UPDATING THE SOLID WASTE
COLLECTION SERVICE FEE SCHEDULE AND RESCINDING
RESOLUTION NO. 2008-2768
WHEREAS, the City provides residential and commercial solid waste and
recycling collection services; and
WHEREAS, on September 18, 2002, the City Council granted exclusive
franchise agreements with G.I. Industries and Moorpark Rubbish Disposal for the
collection, transportation, recycling, and disposal of solid waste in residential and
commercial — industrial areas within City limits; and
WHEREAS, the Franchise Agreements provide for adjustments to the service fee
schedule pursuant to a specified formula; 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.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Effective January 1, 2010, the monthly residential solid waste,
recycling, and green waste collection rate shall be as shown in Exhibit "1".
SECTION 2. Effective January 1, 2010, the commercial, industrial, and multi-
family solid waste, recycling, and composting bin collection rates shall be as shown in
Exhibit "1".
SECTION 3. Effective January 1, 2010, the temporary bins and roll-off/drop box
rates for solid waste, recycling, and composting bin services shall be as shown in
Exhibit "1".
SECTION 4. Effective January 1, 2010, the annual Solid Waste Management
Fee for exemption to the required solid waste collection service shall be $24.40.
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Resolution No. 2009-
Page 2
SECTION 5. The City's Residential Franchise Agreements Service Fee
Schedules (Exhibit "F" of Residential Franchise Agreements) are hereby replaced with
the attached Service Fee Schedule upon the effective date of this resolution.
SECTION 6. The City's Commercial Franchise Agreements Service Fee
Schedules (Exhibit "F" of the Commercial Franchise Agreements) are hereby replaced
with the attached Service Fee Schedule upon the effective date of this resolution.
SECTION 7. This resolution shall be effective January 1, 2010.
SECTION 8. This Resolution hereby rescinds Resolution 2008-2768 in its
entirety upon the effective date of this resolution.
SECTION 9. The City Clerk shall certify to the adoption of the resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 18th day of November 2009.
Janice S. Parvin, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
Exhibit 1 — Schedule of Rates
56
Resolution No. 2009-
ATTACHMENT "A"
Exhibit 1
MOORPARK SOLID WASTE SERVICE FEE
Schedule of Rates -6% Franchise Fee
January 1, 2010
RESIDENTIAL (Single Family)Automated Service
Discards Collection and Disposal and
1' Recycling and Yard Trimmings Collection
A. Regular Full Service Rate: $25.95
Trash -64-gallon cart
Recyclables -64-gallon cart
Yard Trimmings - 96-gallon cart
B. Senior Monthly Rate: $19.19
Trash -32-gallon cart
Recyclables -64-gallon cart
Yard Trimmings—64-gallon cart
C. Super Recycler Rate $19.19
Trash -32-gallon cart
Recyclables -64-gallon cart
Yard Trimmings—64-gallon cart
D. Service Options Available to:
1. Trash cart change from 32 to 64, or 64 to 96 $3.00/mo Service Level A or E
2. Additional 64 gallon trash cart $5.00/mo Service Level A
3. Additional 96 gallon trash cart $8.00/mo Service Level A
4. Additional 96 gallon yard trimmings cart $3.00/mo Service Level A
6. Recycle cart exchange from 64 to 96 $1.00/mo Service Level A,B,C,or E
6. Yard Trimmings cart exchange from 64 to 96 $2.00/mo Service Level B or C
7. Additional 64 gallon recycle cart $2.50/mo Service Level A
a. Additional 96 gallon recycle cart $3.00/mo Service Level A
s. Recycle Cart change from 64 to 32, no rate change Service Level A,B,C,or E
E. Limited Service w/o Yard Trimmings $18.08 /mo
Trash -32-gallon cart
Recyclables -64-gallon cart
No yard trimmings service
F. Service Changes
Customer service level changes: $5.00 per request
G. Additional Charges
Move In /Move Out Service Rate: $15.00
Additional Bulky Item Pickup: $25.00 per item
SW Rate 2010 Actual with CPI Down and FF at 6%.xis Schedule 57
Resolution No. 2009-
ATTACHMENT "A"
MOORPARK SOLID WASTE SERVICE FEE
Schedule of Rates -Continued
January 1, 2010
COMMERCIAL (Dumpster Bin Service)
2. Discard Bin Rates
A. Monthly Rates for one (1) 1.5 cubic yard bin with following pickups per week:
1 time a week $120.45
2 times a week $210.57
3 times a week $300.75
Non contracted 1.5 cubic yard pickup: $45.96
Compacted 1.5 cubic yard pickup: 2 X weekly pickup rate
B. Monthly Rates for one (1)3.0 cubic yard bin with following pickups per week:
1 time a week $139.48 4 times a week $467.05
2 times a week $248.67 5 times a week $576.21
3 times a week $357.86 6 times a week $685.39
Non contracted 3 cubic yard pickup: $54.23
Compacted 3 cubic yard pickup: 2 X weekly pickup rate
C. Monthly Rates for one (1)4.0 cubic yard bin with following pickups per week:
1 time a week $156.92 4 times a week $536.77
2 times a week $283.52 5 times a week $663.36
3 times a week $410.13 6 times a week $789.95
Non contracted 4 cubic yard pickup: $62.63
Compacted 4 cubic yard pickup: 2 X weekly pickup rate
3. Recyclinq/Composting Bin Rates
A. Monthly Rates for one (1) 1.5 cubic yard bin with following pickups per week:
1 time a week $57.46 4 times a week $229.89
2 times a week $114.96 5 times a week $287.39
3 times a week $172.42 6 times a week $344.83
Non contracted 1.5 cubic yard pickup: $18.89
SW Rate 2010 Actual with CPI Down and FF at 6%.xis Schedule 58
Resolution No. 2009-
ATTACHMENT "A"
MOORPARK SOLID WASTE SERVICE FEE
Schedule of Rates -Continued
January 1,2010
B. Monthly Rates for one (1) 3.0 cubic yard bin with following pickups per week:
1 time a week $72.25 4 times a week $289.13
2 times a week $144.58 5 times a week $361.37
3 times a week $216.82 6 times a week $433.70
Non contracted 3 cubic yard pickup: $23.74
C. Monthly Rates for one (1)4.0 cubic yard bin with following pickups per week:
1 time a week $88.21 4 times a week $347.54
2 times a week $173.77 5 times a week $434.48
3 times a week $260.64 6 times a week $521.33
Non contracted 4 cubic yard pickup: $28.96
4. Temporary Bins/Roll-Off Drop Boxes
A. Temporary 3 Cubic Yard Bin Rate: $99.56
B. Redelivery and Reinstatement Rate: $30.19
C. Roll-Off Disposal Rate: $190.60 +Landfill/Recycling Fee
D. Roll-Off Recycling Rate: $190.60 market value negotiable
E. Roll-Off Compactor Rate: $381.18 +Landfill/Recycling Fee
F. Roll-Off Recycling Compactor Rate: $381.18 market value negotiable
5. Miscellaneous
A. "Hard to Service"Vehicle Usage Rate: No Charge
B. "Hard to Service"Bin Moving Rate: No Charge
C. Special Bin Lids(Locking/CBL)Rate: $30.00(One-Time Fee)
D. Deodorizing/Replacing Bin Rate: No Charge Once Per Year
E. Additional Deodorize/Replace Bins: $30.00
F. Charge For Returned Checks: $15.00
G. Charge For Delinquent Payments: $5.00
H. Franchise Transfer Fee $54,423.51
1. Credit Card Payment Convenience Fee(by phone): $5.00
J. Extra Bag Pick up: $3.00/bag or,
$5.00/cart
K. Extra Collection on Non-Scheduled Pick Up Day: $25.00
L. Residential Cart Re-delivery Fee: $15.00
M. Temporary Roll-off Extra Day Fee(post 7 days,trash only): $10.00/day
N. Temporary 3 Cubic Yard Bin Rate(post 7 days,trash only): $5.00/day
O. Permanent Customer Roll-off Extra Day Fee
(post 30 days,trash only): $10.00/day
P. Solid Waste Bin Locking/Unlocking Fee: $20.00/month
SW Rate 2010 Actual with CPI Down and FF at G%.xis Schedule 59
Attachment"B"
SOLID WASTE SERVICE FEE ADJUSTMENT WORKSHEET
DATED January 1,2010
2010
Change
Landfill Increase
2009 2009 2009 2010 2010 2010 2010
Automated Service Residential 2009 2010
Franchise AS 939 Hauler CPI Waste Hauler Franchise Total
Rate Calculation Total Rate Fee Fee Rate Increase Yard Discards Rate Fee(6%) AS 839 Rate $ %
A. Single Family Service $25.84 $1.23 $1.20 $23.41 ($0.30) $0.05 $0.12 $23.28 $1.47 $1.20 $25.95 $0.11 0.43%
B. Senior Citizen Rate $19.14 $0.90 $1.14 $17.10 ($0.22) $0.04 $0.06 $16.98 $1.07 $1.14 $19.19 $0.05 0.26%
C. Super Recycler Rate $19.14 $0.90 $1.14 $17.10 ($0.22) $0.04 $0.06 $16.98 $1.07 $1.14 $19.19 $0.05 0.26%
D. Limited Service(w/o
ard)a approval uired $18.07 $0.85 $1.14 $16.08 ($0.21) $0.06 $15.93 $1.01 $1.14 $18.08 $0.01 0.06%
Commercial Discards
B. One(1)3.0 cubic yard bin with following pickups per week:
2009 2010 2010
2009 Franchise 2010
Total Rate FF(16%) Hauler CPI LF Hauler Fee(16%) Total Rate $ %
Rate Increase Rate
3 1 x week $140.13 $22.42 $117.71 ($1.52) $0.97 $117.16 $22.32 $139.48 -$0.65 -0.46%
2 x week $249.56 $39.93 $209.63 ($2.70) $1.95 $208.88 $39.79 $248.67 -$0.89 -0.36%
3 x week $359.01 $57.44 $301.57 ($3.89) $2.92 $300.60 $57.26 $357.86 -$1.15 -0.32%
4 x week $468.45 $74.95 $393.50 ($5.08) $3.90 $392.32 $74.73 $467.05 -$1:40 -0.30%
5 x week $577.87 $92.46 $485.41 ($6.26) $4.87 $484.02 $92.19 $576.21 -$1.66 -0.29%
6 x week $687.30 $109.97 $577.33 ($7.45) $5.85 $575.73 $109.66 $685.39 -$1.91 -0.28%
Residential Trash Rates 1994-2009
Moorpark Rate Difference
1994 $ 17.22 % $
1995 $ 17.40 1.0% $ 0.18
199V $ 16.30 -6.3% $ (1.10) franchise agreement adjustment
1997 $ 17.12 5.0% $ 0.82
1998 $ 17.33 1.2% $ 0.21
1999 $ 17.51 1.0% $ 0.18
2000 $ 17.87 2.1% $ 0.36
2001 $ 18.49 3.5% $ 0.62
2002 $ 19.06 3.1% $ 0.57
2003" $21.05 10.4% $ 1.99 "automated service implementation
2003 $21.41 1.7% $ 0.36
2004 $21.84 2.0% $ 0.79
2005 $22.47 2.9% $ 1.06
2006 $23.66 5.3% $ 1.19
2007 $24.23 2.4% $ 0.57
2008 $25.84 6.6% $ 1.61
2009 $25.95 0.4% $ 0.11
SW Rate 2010 Actual with CPI Down and FF at 6%.xis Attach B 1 60
ATTACHMENT "C"
RESOLUTION NO. 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE FRANCHISE
AGREEMENT BETWEEN THE CITY OF MOORPARK AND G.I.
INDUSTRIES FOR PROVIDING RESIDENTIAL SOLID WASTE
SERVICES
WHEREAS, the City provides residential solid waste and recycling collection
services; and
WHEREAS, on September 18, 2002, the City Council granted exclusive
franchise agreements with G.I. Industries and Moorpark Rubbish Disposal for the
collection, transportation, recycling, and disposal of solid waste in residential and
commercial — industrial areas within City limits; and
WHEREAS, the Franchise Agreements provide for a residential franchise fee to
be paid by franchisee to City; and
WHEREAS, the City Council declares its intention to increase said franchise
fees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK,
DOES HEREBY RESOLVE TO AMEND THE AGREEMENT AS FOLLOWS:
SECTION 15. Franchise Area — Compensation. B-1 Residential. This paragraph
shall be amended in its entirety, replacing the current language with the following
language: "In consideration of the granting of an exclusive Residential Solid Waste
Franchise, which provides for CITY contract administration and the use of and
extraordinary wear and tear on CITY rights-of-way for the operation of Solid Waste
collection, transportation, disposal, and Recycling vehicles, GRANTEE shall pay to
CITY a Franchise Fee of six percent (6%) of GRANTEE's Residential Gross Revenues
effective January 1, 2010."
With the exception of the change to the above noted document, all other
provisions contained in the Franchise Agreement for Residential Solid Waste Services
shall remain in full force and effect.
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Resolution No. 2009-
Page 2
PASSED AND ADOPTED this 18th day of November 2009.
.Janice S. Parvin, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
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ATTACHMENT "D"
RESOLUTION NO. 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE FRANCHISE
AGREEMENT BETWEEN THE CITY OF MOORPARK AND
SEA/SUE INCORPORATED dba MOORPARK RUBBISH FOR
PROVIDING RESIDENTIAL SOLID WASTE SERVICES
WHEREAS, the City provides residential solid waste and recycling collection
services; and
WHEREAS, on September 18, 2002, the City Council granted exclusive
franchise agreements with G.I. Industries and Moorpark Rubbish Disposal for the
collection, transportation, recycling, and disposal of solid waste in residential and
commercial — industrial areas within City limits; and
WHEREAS, the Franchise Agreements provide for a residential franchise fee to
be paid by franchisee to City; and
WHEREAS, the City Council declares its intention to increase said franchise
fees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK,
DOES HEREBY RESOLVE TO AMEND THE AGREEMENT AS FOLLOWS:
SECTION 15. Franchise Area — Compensation. B-1 Residential. This paragraph
shall be amended in its entirety, replacing the current language with the following
language: "in consideration of the granting of an exclusive Residential Solid Waste
Franchise, which provides for CITY contract administration and the use of and
extraordinary wear and tear on CITY rights-of-way for the operation of Solid Waste
collection, transportation, disposal, and Recycling vehicles, GRANTEE shall pay to
CITY a Franchise Fee of six percent (6%) of GRANTEE's Residential Gross Revenues
effective January 1, 2010."
With the exception of the change to the above noted document, all other
provisions contained in the Franchise Agreement for Residential Solid Waste Services
shall remain in full force and effect.
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Resolution No. 2009-
Page 2
PASSED AND ADOPTED this 18th day of November 2009.
Janice S. Parvin, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
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