HomeMy WebLinkAboutItem 3a - Resolution No. 7019 regarding Residential Refuse RateROPER MINA
21192
DATE: May 20, 2014
TO: Honorable Mayor and City Council
STAFF REPORT
Public Works Services Department
FROM: Tom Tait, Public Works Services Director
By: Vanessa Hevener, Environmental Services Officer
SUBJECT: RESOLUTION NO. 7019 SETTING SERVICE RATES FOR THE
COLLECTION OF RESIDENTIAL REFUSE AND RECYCLABLES
PURSUANT TO SECTION 5120.7 OF ARCADIA MUNICIPAL CODE
Recommendation: Adopt
SUMMARY
In accordance with the Residential Refuse and Recycling Agreement, Waste
Management Inc. ( "WM ") is entitled to receive annual rate adjustments that are subject
to staff review and City Council's approval. WM has submitted a request to adjust the
single family and multi - family refuse rates by 3.28 %. Even with the proposed increase,
the City's residential refuse rates will remain one of the lowest in the San Gabriel Valley.
BACKGROUND
In April 2011, the City Council approved a five year rate adjustment schedule in
accordance with Proposition 218 requirements. In October 2013, the City amended its
contract with WM and extended the term for an additional five years. The amended
contract requires that WM receive City Council approval for annual increases subject to
a standardized formula. The rate adjustment formula consists of three weighted
indices: Consumer Price Index (CPI) (65 %); Disposal /Green Waste Facility Index
(30 %); and Producer Price Index (PPI) for fuel (5 %). Resolution No. 7019 is attached
for adoption and includes, as part of the Resolution, the proposed rate schedules.
Prior to the closure of Puente Hills Landfill, the facility's rates were used for the
Disposal /Green Waste Facility Index portion of the formula. Since the closure of Puente
Hills Landfill, trash and green waste are taken to the Puente Hills Material Recovery
Facility where the materials are transferred via trucks to landfills in Orange County and
elsewhere in Southern California. To capture this change, the contract was amended to
Residential Refuse Rate Schedule FY 2014 -15
May 20, 2014
Page 2 of 3
utilize the Riverside County landfills in lieu of Puente Hills Landfill for the adjustment
formula effective July 1, 2016. Prior to 2016, the old formula remains in place.
DISCUSSION
On March 31, 2014, WM submitted a request for a service rate adjustment. Utilizing the
current rate adjustment formula, which still uses the old Puente Hills Landfill rates, the
proposed rate increase would be 11.21%; however, staff worked with WM to utilize the
tipping fees charged at the Azusa Materials and Recovery Facility instead. The rates
charged at this facility, which is owned by WM, are considerably lower, resulting in a
lower cost for the proposed rate increase.
The CPI change was measured from the annual average for calendar year 2012 and
2013 specific to the Los Angeles- Riverside - Orange County statistical area. The
Disposal /Green Waste Facility index is based on WM's actual collection costs for trash
and greenwaste and the ratio of trash and green waste generated by residential and
multi - family properties in the City. The Producer Price Index (PPI) for fuel is calculated
based proportionally on the fuel used by the vehicles in service as published by the
United States Department of Energy.
Table 1 shows the percentage breakdown and weighted amount that is accounted for in
each index that make up the total CPI adjustment:
Table 1: Rate Adjustment Formula
Staff worked with WM representatives and thoroughly reviewed and verified all rate
adjustment data. WM has successfully demonstrated their commitment to working with
the City and their ability to provide the most efficient and effective refuse and recycling
services to Arcadia residents. As such, WM has shouldered the costs of programs
previously paid for by the City including the Sharps Waste program; hazardous waste
Adjustment due
Relative
Weighted Rate
Rate Component
°
�o
°
/° of
° /o of
to change in
Weight
Adjustment
CPI
Fleet
Tonnage
indices /change
in disposal fees
of Rate
Percentage
Service — CPI
75%
0.81%
65%
0.53%
Diesel
5%
-2.57%
-0.01%
Fuel
5%
Alternative
95%
-1.81%
-0.69%
Disposal
Municipal
55%
10.49%
1.73%
/Green
Solid Waste
Waste
30%
Facility
Greenwaste
45%
8.23%
1.11%
Total
100%
3.28%
Staff worked with WM representatives and thoroughly reviewed and verified all rate
adjustment data. WM has successfully demonstrated their commitment to working with
the City and their ability to provide the most efficient and effective refuse and recycling
services to Arcadia residents. As such, WM has shouldered the costs of programs
previously paid for by the City including the Sharps Waste program; hazardous waste
Residential Refuse Rate Schedule FY 2014 -15
May 20, 2014
Page 3 of 3
materials collection generated by both residents and the City; enhanced
commercial /multi - family outreach /education; and emergency collection and disposal
services in the new contract extension. Based on the contractor's service record and
continuing satisfactory performance, staff concurs with WM's request for a rate
adjustment.
Additionally, the attached refuse rate survey conducted in early May 2014 indicates that
the City of Arcadia's rates are amongst the lowest in the San Gabriel Valley, even with
the proposed rate increase.
ENVIRONMENTAL ANALYSIS
Refuse rates are exempt from the requirements of the California Environmental Quality
Act as specified in Title 14, Section 15273 of the California Administrative Code.
FISCAL IMPACT
Residential refuse and recycling collection service rates is a fee - for - service that is paid
directly to the contractor by the residential customer. The proposed rates will not impact
the City's budget.
RECOMMENDATIONS
It is recommended that the City Council adopt Resolution No. 7019 setting service rates
for the collection of residential refuse and recyclables pursuant to Section 5120.7 of the
Arcadia Municipal Code.
Approved:
Dominic Lazzar
City Manager
Attachments: Refuse Rate Survey
Resolution No. 7019
$50
$40
$30
$20
$10
16
Refuse Rate Survey
May 2014
Single Family Residential Monthly Rates
$31.62 831.53$31.39 ,.—
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$27.05 $26.04
$24.55
$23.09$23. $22.53 $21.85 $21.65
$20.52 $19.57
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RESOLUTION NO. 7019
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, SETTING SERVICE RATES FOR
THE COLLECTION OF RESIDENTIAL REFUSE AND
RECYCLABLES PURSUANT TO SECTION 5120.7 OF THE
ARCADIA MUNICIPAL CODE
WHEREAS, pursuant to the Arcadia Municipal Code Section 5120.7, the Arcadia
City Council is authorized to fix and determine the rates that may be charged for
collecting or removing garbage, refuse or recyclables from any premises in the City; and
WHEREAS, all residential units in the City are required to participate in the City
refuse collection service; and
WHEREAS, the franchisee under that certain Residential Refuse and Recycling
Agreement dated March 10, 2009 is not authorized to charge or collect any fees or rates
other than the fees and rates set forth in this Resolution, and the fees and rates shall
remain in effect, unless changed by resolution of the City Council of the City of Arcadia;
and
WHEREAS, the proposed refuse rate change was presented to the City Council
at its May 20, 2014 regularly scheduled City Council meeting; and
WHEREAS, the proposed rate adjustments are based on a formula using the
Consumer Price Index (CPI), Disposal /Green Waste Facility Index, and Producer Price
Index (PPI) for fuel, in accordance with the City's Residential Refuse and Recycling
Agreement with Waste Management,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1
SECTION 1. Commencing July 1, 2014, the monthly rates for residential/multi-
family refuse and recycling collection services for Fiscal Year 2014 -2015 shall be those
set forth in Exhibit "A" attached hereto.
SECTION 2. All rates set forth in this Resolution shall be reflected on all refuse
bills issued on or after July 1, 2014.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
Passed approved and adopted this day of 2014.
ATTEST:
City Clerk
APPROVED AS TO FORM:
Stephen P. Deitsch
City Attorney
2
Mayor of the City of Arcadia
City of Arcadia Residential Refuse and Recycling Collection Service
Single Family Rate Schedule - 3.26%
Exhibit "A"
Effective July 1, 2014 the monthly residential refuse and recycling service rates are,
(Greenwaste)
Single Family 64g
$11,97
Dwelling, (1) 96g
STANDARD SERVICE RATES
Time Per Can
$38.71
Unscheduled Pickup
$33.33 Size - One Quart
Monthly Per 64g
$842
Addrtionai Can 969
$1037
BIY Automated
$58.53
Collection Ser,
2014
#
Green
1 Time P1U
Per Can
Unscheduled Pickup
SENIOR CITIZEN SERVICE RATES
$842
Monthly Per 649 $7.58
$0.00
Service
Base
GW
Waste
Recycling
AB 939
Total
Monthly
Service
2014
Base
#
GW
Green
Waste
$5449
Total
Cate o
Rate
carts
Rate
Charge
Fee
Fee
Catego
Rate
carts
Rate
Recycling
AB 939
Monthly
Single Family
Dwelling, (1)
$15 58
$15.58
1
2
$2.36
$078
$030
$1902
Single Family
$14.06
1
$214
Charge
Fee
Rate
$0.78
$030
$0.00
60 Galion Can
$1558
3
$338
$456
$078
$030
$2004
Dwelling, (1)
$14.06
2
$304
$078
$0 30
$17.28
$18 18
$15.6B
4
$566
5078
$0.78
$030
$030
$2122
$22.31
60 Gallon Can
$1406
3
$5 100
$0 78
$0.30
$1926
Rates are negotiated under the commercial non - exclusive contract
$15.58
5
$6.93
$078
$030
$23.59
$14.06
5
$6.26
$078
$030
$201.40
Single Family
Dwelling, (t)
$19.09
$19.09
1
2
$2.36
$338
$0.76
$0.30
$22.53
Single Farni[y
$17.23
1
$2 -14
$0.78
$030
$20.45
90 Gallon Can
$19.09
3
$4.56
S078
$0.78
$0.30
$030
$23,56
$24.74
Dwelling, (1)
90
$1723
2
$3,04
$078
$030
$21.34
$19.09
4
$5.66
$078
$0.30
$25.83
Gallon Can
$17.23
3
$412
$0.78
$0-30
$22.42
$19.09
5
$6.93
$0.78
$0.30
$27.11
$17 23
$17 23
4
5
$510
$6 26
$0.78
$030
$2341
Monthly Per >5
$1 15
$1,15
Monthly Per >5
$1.05
$078
$0.30
$24.56
Additional Can
Addi t
$105
(Greenwaste)
Single Family 64g
$11,97
Dwelling, (1) 96g
$1216
Time Per Can
$38.71
Unscheduled Pickup
$33.33 Size - One Quart
Monthly Per 64g
$842
Addrtionai Can 969
$1037
BIY Automated
$58.53
Collection Ser,
B(Y Collection
$18.43
1 Time P1U
Per Can
Unscheduled Pickup
B/Y Additional
$15.56
Container
"Bulky Item P!U
$38.71
Sharps Program
$33.33 Size - One Quart
$0.00
$43.60 Size - One Quart
Reactmation Cutoff F per occurrence $3615
Recycling Contamination Fee $1549
Temporary 3 - Yard Bin Service:
Three Day Rental $131.03
Seven Day Rental $157.10
Additional Rate Per D $7.40
$000 $000
$000 $000
$000 $000
$000 $000
$078 SOW
$0.00 $000
$0 -00 $000
$0.00 $0.00
Additional sizes available
Additional sizes available
`This pricing applies only to residents that exceed the 4 free Bulky Item collections
ional Can
(Greenwaste)
$11.97
Single Family 64g $10.76
$0.00
$0.00
$10.76
$12 16
Dwelling, (1) 96g $10.94
$0.00
$000
$10.94
Time Per Can
Unscheduled Pickup
$842
Monthly Per 649 $7.58
$0.00
$000
$758
$1037
.4ddrhonai Can 96g $9.37
$0.00
$0.00
$9.37
$6961
WY Automated $53.41
$0.78
$130
$5449
Collection Ser.
$1843
B/Y Collection $16.59
$0.00
$0.00
$16.59
1 Time P!U
Per Can
$1556
BN Additional $14.05
$000
$000
$14.05
Container
$3871
'Bulky Item P!U $3484
$0.00
$0.00
$34.84
$3333
Sharps Program $33.33 Size - One Quart
Additional sizes available
$33.33
$4360
$43.60 Size - One Quart
Additional sizes available
$43.60
Reactivation CuVoff F per occurrence $36 15
Recycling Contamination Fee $1549
Temporary Rol[ -Off Bin Serivice:
$13103
Rates are negotiated under the commercial non - exclusive contract
$15710
$740
Reactivation Cut/Off per occurance $3615
Exhibit "A"
City of Arcadia
Refuse and Recycling Collection Service
Single - family Base Rate Schedule
2014/2015
3.28%
Single Family Greenwaste Bin Service: Includes one (1) greenwaste
Curbside Bin Service:
Resident rolls bin and containers to their curb and the trash
truck drives directly to the container then empties the bin and containers.
1 -1.5 yard $117.03 $105.41
1 - 3 yard $133.17 $119.87
Backyard Bin Service
Waste Management enters residents backyard, rolls out their greenwaste
bin and refuse /recycling containers to the curb, empties them, then return
them to their original location on the same day.
Number
Bins and Base Rate Discount
Size Rate
1 - 1.5 yard $141.12 $127.01
1 - 3 yard $156.93 $141.23
Reactivation /Cut off fee - $ 36.15
Exhibit "A"
City of Arcadia
Refuse
Collection Service
Multi - family Base Rate Schedule
2014 -2015
3.28%
Number of Bins
STAB RATE
0
and size
NUMBER OF PICK -UPS PER
-WEEK
1
2
3
4
6
6
1 - 1.5 Yard
$94.87
$189.76
$264.63
$408.99
$474.38
$569.24
2 - 1.5 yard
$172.50
$345.00
$517.48
$689.94
$862.47
$1,034.96
3 -1.5 yard
$258,75
$517.49
$776.24
$1,034.98
$1,293,72
$4,552.49
4 - 1.5 yard
$345.03
$690.02
$1,035.00
$1,380.01
$1,725.04
$2,070.02
5 - 1.5 yard
$431.24
$862.52
$1,293.76
$1,725.05
$2,156.30
$2,587.56
1 - 3 yard
$113.04
$209.88
$339.08
$452.11
$565.17
$678.18
2 - 3 yard
$201.82
$419.81
$605.43
$607,22
$1,009.04
$1,210.83
3 -3yard
$290.67
$629.69
$871.91
$1,162.53
$1,453.18
$1,743.82
4- 3 yard
$379,44
$839.57
$1,138,28
$1,517.71
$1,897.14
$2,138.40
5 - 3 yard
$468,27
$1,049.45
$1,404,75
$1,872.96
$2,341.22
$2,809.42
1 - 6 yard
$211.82
$423.68
$635.47
$847.30
$1,059.12
$1.270.96
Number of Bins
DISMOUNT RATE
and Size
NUMBER OF PICK -UPS PER WEEK
�&. _
-
2
3
4
5
6
1 - 1.5 yard
$106.97
$213.95
$320.91
$427.87
$534.84
_
- $641.81
2- 1.5yard
$194.50
$368.98
$563.49
$777.98
$972.45
$1,166.94
3- 1.5 yard
$291.73
$583.43
$875.16
$1,166.88
$1,458.60
$1,750.28
4- 1.5 yard
$388,96
$777.95
$1,166,89
$1,555.84
$1,890,24
$2,333.79
5 - 1.5 yard
$486.22
$972.40
$1,456.63
$1,944.84
$2,431.05
$2,917.26
1 - 3 yard
$127.48
$232.12
$369.33
$492.32
$615.54
$738.61
2 -3yard
$224.04
$464.16
$672.07
$896.12
$1,120.13
$1,344.17
3- 3 yard
$324.93
$695,81
$974.78
$1,299.71
$1,624.65
$1,949,58
4 -3yard
$425.82
$928,38
$1,277.49
$1,703.32
$2,129.18
$2,554.96
5 -3yard
$526.78
$1,160.50
$1,580.25
$2,107.02
$2,633.78
$3,160.52
1 -6 yard
$231.89
$463.81
$695.65
$927.53
$1,159.40
$1,391.30
Number of Bins
STAGE RATE
and Size
NUMBER
OF PICK -UPS PER
WEEK
_
1
2
3
4
5
6
1 - 1.5 yard
$117.04
$234.10
$351.13
$458.18
$585.21
$702.25
2 - 1.5 yard
$212.85
$425.67
$638.51
$851.33
$1,064.15
$1,277.00
3 - 1.5 yard
$319.27
$638.52
$957.77
$1,277.02
$1,596.29
$1,915.52
4- 1.5 yard
$425.69
$851.35
$1,277.05
$1,702.70
$2,128.42
$2,554.08
5- 1.5 yard
$532.10
$1,064.16
$1,596.25
$2,128.36
$2,660.45
$3,192.55
1 - 3 yard
$133.17
$252.27
$399,61
$532.81
$666,01
$799.21
2 -3yard
$245.90
$504.58
$738.61
$984.83
$1,231.06
$1,477.27
3 - 3 yard
$359.25
$756.83
$1,077.74
$1,436.98
$1,796.21
$2,155.44
4 -3yard
$472.28
$1,009.12
$1,416,86
$1,889.16
$2,361.44
$2,833.74
5 -3yard
$585.28
$1,261.39
$1,755.84
$2,341.11
$2,926.42
$3,511.70
1 -6 yard
$251.74
$503.54
$755.20
$4,006.93
$1,258.65
$1,510.41
Additional pick -up
1.5 yard
$55.77
3 yard
$72,60
6 yard
$114.70
Reactivation /Cut off fee
$36.15
*Please add the following fees to the rates listed above:
Recycling Fee (Reso
# 6269):
2 -6 units = $1.00 per unit
7 or more units = $1.50 per unit
AB 939 Fee = $0.30 per unit