HomeMy WebLinkAboutAGENDA REPORT 1996 1218 CC REG ITEM 10FAGENDA REPORT
City of Moorpark
TO: The Honorable City Council
u
FROM: Jill R. Myers, Solid Waste Coordinator *06-14
DATE: December 10, 1996 (CC Meeting of December 18, 1996)
SUBJECT: Consider Resolution 96- , Rescinding Resolution 95 -1169, Updating Solid
Waste Collection Fees.
Pursuant to the City's Solid Waste Franchise Agreement with G.I. Rubbish and Moorpark
Rubbish Disposal, staff conducted a review of the monthly service rates for commercial and
residential solid waste collection service. The Agreements provide for adjustments to the service
fee schedule pursuant to a specified formula that takes into account changes in the Landfill rate,
Consumer Price Index (CPI), and the City's waste diversion efforts.
The City Council is therefore being asked to consider increasing the monthly residential base rate
by $0.82, increasing the residential Senior /Super Recycler discounted rate by $0.76, and
increasing the commercial bin rates by the amounts specified in attachment "A" as described in
the following report. No changes are being proposed to the AB 939 fees ($1.20, $1.14, and 8%
respectively). It is proposed that the new rates be effective on January 1, 1997.
On December 20, 1995, the City Council approved exclusive franchise agreements for commercial
and residential service with G.I. Rubbish and Moorpark Rubbish Disposal. The Agreements
provide for a service fee schedule (Exhibit G) and a rate adjustment formula (Exhibit H).
The formula for determining an adjustment to the monthly rates is calculated by examining three
components - 86% of the Consumer Price Index (CPI) less Housing, the Simi Valley Landfill rate
adjustment as calculated by the County, and the City's diversion rate. Below is an itemization of
the rate components:
The percentage change in the CPI from September 1995 to September 1996:
Current residential base rate multiplied by 86% of the CPI percentage change, less the
Housing component ( +2.4 %) =
Residential Base Rate: $15.10 (86% of 2.4 9/6) = $15.10 (.02) =
Discounted Rate: $11.90 (86% of 2.4 %) = $11.90 (.02) =
(Senior Rate and Super Recycler)
0UU .566
Honorable City Council
Solid Waste Rate Review
Page 2
For the commercial rate, 0.02 will be multiplied by the existing rates as detailed in
attachment "A '.
The Simi Valley Landfill adjustment is $1.81 per ton increase for 1997:
The formula for the Landfill rate adjustment to the residential accounts is $0.45 per $1.00
increase/decrease times the City's residential diversion rate (37.5 %) as calculated by the
haulers in the quarterly reports.
45% x $1.81 =$0.82 x .375 = $0.31; $0.82 - $0.31 =
The formula for the Landfill rate adjustment to the commercial accounts is $0.90 per
$1.00 increase/decrease times the times the City's commercial diversion rate (15.5 %) as
calculated by the haulers in the quarterly reports.
90% x $1.81= $1.63 x .155= $0.25; $1.63- $0.25 = ILU
The 1996 Annual Report that was submitted to the California Integrated Waste Management
Board (CIWMB) stated that the City had attained 25% diversion in 1995. As you know, in the
Annual Report staff expressed concerns with both the 1990 base year generation tonnage figures
and the current year (1995) disposal reporting tonnage figures reported by landfills during the
quarterly survey periods. Such surveys allocated tonnage to Moorpark that was received from
self- haulers at landfills outside of Ventura County. CIWMB staff have revised the methodology
for determining base year diversion (1996 will be the new base year) and are planning to release
revisions to the current year disposal reporting system in February 1997. Because of the reporting
discrepancies, staff used the 1996 diversion figures reported by the franchise haulers in their
quarterly reports as the figures to offset the landfill rate increase. According to the haulers, the
average diversion rate for the residential sector is 37.5% and 15.5% for the commercial sector.
The haulers' diversion figures represent the actual diversion by the City without penalizing the
City for waste delivered by self hauls both in and outside of the County.
Combining the factors ($0.31 +$0.51) amounts to a proposed increase of $0.82 per household per
month for regular service. The proposed Senior /Super Recycler discounted service increase is
$0.76 ($0.25 +$0.51) per month. Attachment "A' itemizes the proposed monthly residential and
commercial solid waste collection rates.
Additionally, when the City Council approved the update to the 1996 AB 939 fees in December
1995, the update to the Solid Waste Management (Exemption) Fee was not included in resolution
95 -1169. The Solid Waste Management fee is an annual fee based on the monthly residential AB
939 fee plus an administration fee. Therefore, to document the previously (1996) approved Solid
Waste Management fee, it is included in the proposed resolution.
000567
Honorable City Council
Solid Waste Rate Review
Page 3
As previously stated, the agreements with the haulers identify the service fee schedule (Exhibit G)
and the rate adjustment schedule (Exhibit H). Both exhibits require updating to incorporate the
1997 service rates and the 1997 Simi Valley Landfill tonnage rate.
Additionally, Exhibit H also requires an update to the rate review calculation - specifically,
updating the component establishing the City's residential and commercial diversion rate. As
previously discussed, staff used the 1996 diversion figures reported by the franchise haulers in
their quarterly reports as the figures to off_ set the landfill rate increase. Both haulers included
diversion factors that included yard waste diversion in their calculations. To be consistent with the
haulers' diversion calculations, staff proposes the removal of the phrases, "(less yard waste)" from
the Residential rate calculation and "less yard waste, concrete, and asphalt" from the Non -
Residential (Commercial) rate calculation in the "Landfill Tipping Fee Formula" described below.
(2) Landfill Tipping Fee Formula:
(a) RaW - $0.45 per $1.00 /ton landfill increase times
current CITY published residential recycling, less the (less yard
waste) diversion rate, e.g., $1.00 landfill increase with a 25%
diversion rate would equal: $.45 x 1 = $ .45 x 25% = $.45 - $ .11 =
$ .34 rate increase.
(b) Non - Residential Rate - $0.90 per $1.00 /ton landfill increase times
current CITY published nonresidential recycling, less the diversion
rate, , e.g., $1.00 landfill
increase with a 25% diversion rate would equal: $.90 x 1 = $ .90 x
25% = $ .90 - $ .23 = $ .67 rate increase.
The proposed language adjustment allows the City to achieve higher diversion rates, while
keeping the term "diversion" general enough to cover any new programs that may be added to
increase diversion. Additionally, the State's diversion formula does not exclude yard waste,
concrete, or asphalt from its diversion calculation. The overall effect to the ratepayers will be to
minimize rate increases by using the higher diversion rate to offset the landfill rate increase. Staff
therefore requests the City Council to consider approval of the updated exhibits, as attached to
Resolution 96- for adoption by the City Council. The agreements specify that any updates to
the agreement must be made by resolution of the City Council.
000568
Honorable City Council
Solid Waste Rate Review
Page 4
Staff recommends that the City Council:
Approve the solid waste collection fees effective January 1, 1997; and
2. Adopt Resolution 96- , rescinding Resolution 95 -1169, approving the solid waste
collection fees and updating Exhibit G and Exhibit H of the Franchise Agreements,
effective January 1, 1997.
Attachments
000569
ATTACHMENT A
1997 Residential Rates
The monthly residential solid waste, recycling, and yard waste collection
rates effective January 1, 1997:
1997 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and multi - family solid waste, recycling, and
composting bin collection rates, effective January 1, 1997:
A. One (1) 1.5 cubic yard bin with following
pickups per week:
1997
1996 RATE
CPI
LF
1996
CPI +LF
1997
Same
2 x week
Base Rate
Incmase
Base Rate
AS 939
Single Family Service
$15.10
$0.82
$15.92
$1.20
(Individual can service)
$1.38
5 x week
$322.78
$6.66
Senior Citizen Rate
$11.90
$0.76
$12.66
$1.14
Super Recycler Rate
$11.90
$0.76
$12.66
$1.14
1997 Commercial Solid Waste Bin Rates
The monthly commercial, industrial, and multi - family solid waste, recycling, and
composting bin collection rates, effective January 1, 1997:
A. One (1) 1.5 cubic yard bin with following
pickups per week:
1996 RATE
1996 RATE
CPI
LF
1 x week
$83.20
$1.72
$1.38
2 x week
$145.59
$3.00
$1.38
3 x week
$207.99
$4.29
$1.38
4 x week
$270.38
$5.58
$1.38
5 x week
$322.78
$6.66
$1.38
6 x week
$395.17
$8.16
$1.38
7 x week
$457.58
$9.44
$1.38
Noncontrt: $31.20 $0.64 $1.38
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2 X weekly pickup rate
B. One (1) 3.0 cubic yard bin with following pickups per week:
1996 RATE
CPI
LF
1 x week
93.6
$1.93
$1.38
2 x week
166.39
$3.43
$1.38
3 x week
239.19
$4.94
$1.38
4 x week
311.98
$6.44
$1.38
5 x week
384.78
$7.94
$1.38
6 x week
457.58
$9.44
$1.38
7 x week
530.36
$10.95
$1.38
Noncontrt: $36.39 $0.75 $1.38
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
1
O0 S70
C. One (1) 4.0 cubic yard bin with the followinc
with folk Mng
1996 RATE
CPI
1 x week
104
$2.15
2 x week
187.18
$3.86
3 x week
270.38
$5.58
4 x week
353.58
$7.30
5 x week
436.77
$9.01
6 x week
519.97
$10.73
7 x week
603.16
$12.45
LF
$1.38
$1.38
$1.38
$1.38
$1.38
$1.38
$1.38
week:
Noncontrt: $41.59 $0.86 $1.38
SPECIAL ONETIME PICKUP FOR PERMANENT ACCOUNTS
Compacted 2X weekly pickup rate
Commercial Recycling/Composting Bin Rates
A. One (1) 1.5 cubic yard bin
with folk Mng
pickups per week:
1996 RATE
CPI
LF
1 x week
41.59
$0.86
0
2 x week
83.2
$1.72
0
3 x week
124.79
$2.58
0
4 x week
166.39
$3.43
0
5 x week
207.99
$4.29
0
6 x week
249.58
$5.15
0
7 x %jveek
291.18
$6.01
0
B. One (1) 3.0 cubic yard bin
with following pickups per week:
1996 RATE
CPI
LF
1 x week
51.99
$1.07
0
2 x week
104
$2.15
0
3 x week
155.99
$3.22
0
4 x week
207.99
$4.29
0
5 x week
259.98
$5.37
0
6 x week
311.98
$6.44
0
7 x week
363.98
$7.51
0
C. One (1) 4.0 cubic yard bin
with following pickups per week:
1996 RATE
CPI
LF
1 x week
62.39
$1.29
0
2 x week
124.79
$2.58
0
3 x week
187.18
$3.86
0
4 x week
249.58
$5.15
0
5 x week
311.98
$6.44
0
6 x week
374.38
$7.73
0
7 x week
436.77
$9.01
0
2
OWS71
The temporary bins and roll-off/drop box rates for solid waste, recycling
effective January 1, 1997:
The annual solid waste management fee for exemption to required
solid waste collection service mandate shall be:
3
RECY
value
RECY
value
OW .572
RATE
CPl
Temporary 3 Cubic Yard Bin Rate:
$72.80
$1.50
Redelivery and Reinstatement Rate:
$25.00
$0.00
Roll -off Disposal Rate:
$139.35
$2.88
Roll -off Recycling Rate:
$139.35
$2.88
Roll -off Compactor Rate:
$278.70
$5.75
Roll -off Recycling Compactor Rate:
$278.70
$5.75
The annual solid waste management fee for exemption to required
solid waste collection service mandate shall be:
3
RECY
value
RECY
value
OW .572