HomeMy WebLinkAboutItem 3a - Resolution No. 7069 Re. Residential Refuse RateG�IIFOgnt9`y�
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° -.Aq°n;ty°t ° ee � STAFF REPORT
Public Works Services Department
DATE: May 19, 2015
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Vanessa Hevener, Environmental Services Officer
SUBJECT: RESOLUTION NO. 7069 SETTING SERVICE RATES FOR THE
COLLECTION OF RESIDENTIAL REFUSE AND RECYCLABLES
PURSUANT TO SECTION 5120.7 OF ARCADIA MUNICIPAL CODE
Recommendation: Find that Resolution No. 7069 is exempt from the
requirements of the California Environmental Quality Act; and adopt
Resolution No. 7069
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 2.05 %. Even with the proposed increase,
the City's residential refuse rates will remain among the lowest 1/3 in the San Gabriel
Valley with similar services.
BACKGROUND
In April 2011, the City Council approved a five -year rate adjustment schedule in
accordance with Proposition 218 requirements. This will be the last year of the
approved five (5) year rate adjustment schedule for single family and multi - family rates.
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. 7069 is attached for adoption and includes, as part of the
Resolution, the proposed rate schedules.
Setting Residential Refuse and Recyclable Service Rates
May 19, 2015
Page 2 of 3
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
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, 2015, WM submitted a request for a service rate adjustment. Similar to
last year, the Disposal /Green Waste Facility Index is based on the tipping fees charged
at the Azusa Materials and Recovery Facility, which is owned by WM. The rates
charged at this facility remain unchanged from last year.
The CPI change was measured from the annual average for calendar year 2013 and
2014 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 Adiustment Formula
Adjustment due
Relative
Weighted Rate
Rate Component
°
�o
°
/° of
° /° of
to change in
Weight
Adjustment
CPI
Fleet
Tonnage
indices /change
of Rate
Percentage
in disposal fees
Service — CPI
75%
1.01 %
65%
0.66%
Diesel
5%
- 2.85%
-0.01%
Fuel
5%
Alternative
95%
29.55%
1.40%
Disposal/
Municipal
55%
0%
0%
Green
Solid Waste
Waste
30%
Facility
Greenwaste
45%
0%
0%
Total
100%
2.05%
Setting Residential Refuse and Recyclable Service Rates
May 19, 2015
Page 3 of 3
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
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 April 2015 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; however, customers will experience a 2.05% increase in fees in the
coming year.
RECOMMENDATION
It is recommended that the City Council find that Resolution No. 7069 is exempt from
the requirements of the California Environmental Quality Act; and adopt Resolution No.
7069 setting service rates for the collection of residential refuse and recyclables
pursuant to Section 5120.7 of the Arcadia Municipal Code.
Approved.
Dominic La7zareW
City Manager
Attachments: Residential Refuse Rate Survey
Resolution No. 7069
$50
$40
$30
$20
$10
Refuse Rate Survey
April 2015
Single Family Residential Monthly Rates
F
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O
'.77 $27.05 $26.62 $26.0
8 $26.07 $25.11
$24.55
$22.99 $22.76 $22.55 $22.16 $21.16
$20.92
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RESOLUTION NO. 7069
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 recyciables 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 19, 2015 regularly schedule City Council meeting; and
WHEREAS, the 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, 2015, the monthly rates for reside ntiallmulti-
family refuse and recycling collection services for Fiscal Year 2015 -2016 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, 2015.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
Passed approved and adopted this day of 12015.
ATTEST:
City Clerk
APPROVED AS TO FORM:
Stephen P. Deitsch
City Attorney
Fj
Mayor of the City of Arcadia
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Exhibit "A"
City of Arcadia
Refuse and Recycling Collection Service
Single- family Base Rate Schedule
2015/2016
2.05%
Single Family Greenwaste Bin Service: Includes one (1) greenwaste bin,
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.
Number of Sr
Bins and Base Rate Discount
Size Rate
Backyard Bin Service
Waste Management enters residents backyard, rolls out their greenwaste
bin and refuselrecycling containers to the curb, empties them, then return
them to their original location on the same day.
Number of Sr
Bins and Base Rate Discount
Size Rate
-4
.i
Reactivation /Cut off fee - $ 36.89
Exhibit "A"
City
of Arcadia
Refuse
Collection Service
Multi - family
Base Rate Schedule
2016.2016
2.06%
Number of Bins
STAB RATE
0
and size
NUMBER OF PICK -UPS PER
-WEEK
1
2
3
4
6
6
1 - 1.5 Yard
$96.82
$193.64
$290.46
$417.37
$484,09
$580.90
2- 1.5 yard
$176.03
$352.07
$528.08
$704.07
$880,14
$1,056,15
3 -1.5 yard
$264.04
$528.09
$792.13
$7,056.18
$1,320.21
$1,584.29
4 - 1.5 yard
$352.09
$704.15
$1,056.20
$1,408.27
$1,760.36
$2,112.41
5- 1.5yard
$440.07
$880.18
$1,320,25
$1,760.37
$2,200.46
$2,640.55
1 - 3 yard
$115,35
$214.18
$346.02
$461.36
$576.74
$692.06
2- 3 yard
$205,95
$428.41
$617.83
$823.75
$1,02970
$1,235.63
3- 3 yard
$296.62
$642.59
$889.76
$1,186.34
$1,482.94
$1,779.53
4 -3yard
$387.21
$856.76
$1,161.59
$1,548.79
$1,935.99
$2,182.18
5 - 3 yard
$477.86
$1,070.94
$1,433.51
$1,911.31
$2,389.16
$2,866.95
1 -6yard
$216.16
$432.35
$648.48
$864.65
$1,080.81
$1,296.99
Number of Bins
DISMOUNT RATE
and Size
NUMBER OF PICK -UPS PER WEEK
1
2
3
4
5
6
1 - 1.5 yard
$109.16
$218.33
$327.48
$436.63
$545.79
$654.95
2- 1.5 yard
$196.48
$396.95
$595.44
$793,91
$992.36
$1.190.84
3- 1.5yard
$297.70
$595.38
$893.08
$1,190.77
$1,488.47
$1,786.12
4- 1,5yard
$396.92
$793,88
$1,190.78
$1,587.70
$1,928.95
$2,381.58
5 - 1.5 yard
$496.18
$992.32
$1,488.50
$1,984.66
$2,480.83
$2,977.00
1 - 3 yard
$130.09
$236.87
$376.89
$502.40
$628,15
$753.74
2 - 3 yard
$228.63
$473.66
$685.83
$914.47
$1,143.07
$1,371.69
3 -3yard
$331.58
$710.06
$994.74
$1,326.33
$1,657.92
$1,989.50
4 -3yard
$434.54
$947.39
$1,30165
$1,738.20
$2,172.78
$2,607.28
5 - 3 yard
$537.57
$1,184.27
$1,612.61
$2,150.17
$2,687.71
$3,225.24
1 -6yard
$236.64
$473.31
$709.90
$946.53
$1,183.14
$1,419.79
Number of Bins
STAGE RATE
and Size
NUMBER
OF PICK -UPS PER
WEEK
1
2
3
4
5
6
1 - 1,5 yard
$119.43
$236.90
$358.32
$477.76
$597.20
$716,63
2- 1.5yard
$217.21
$434.39
$651.59
$868.76
$1,085.95
$1,303,15
3- 1.5yard
$325.81
$651.60
$977.39
$1,303,17
$1,628.97
$1,954.75
4- 1.5 yard
$434.40
$868,78
$1,303.20
$1,737.57
$2,172.00
$2,606.38
5- 1.5yard
$542.99
$1,085,96
$f,628.94
$2,171.95
$2,714.93
$3,257.92
1 - 3 yard
$135.90
$257.44
$407.80
$543.72
$679,65
$815.57
2 -3 yard
$250.93
$514.91
$753.74
$1,004.99
$1,25627
$1,507.52
3 - 3 yard
$366.61
$772.32
$1,099.80
$1,466.40
$1,832.99
$2,199.58
4 -3yard
$481.95
$1,029.78
$1,445.87
$1,927.84
$2,409.80
$2,891.77
5- 3 yard
$597.26
$1,287.22
$1,791.90
$2,389.05
$2,986.35
$3,583.61
1 -6yard
$256,89
$513.85
$770.66
$1,027.55
$1,284.42
$1,541.34
Additional pick -up
1.5 yard
$56.91
3 yard
$74.09
6yard
$117.05
Reactivation /Cvt off fee
$38.89
`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
Service
Category
Single Family
Dwelling, (1)
60 Gallon Can
Exhibit A
City of Arcadia Residential Refuse and Recycling Collection Service
Single Family Rate Schedule - 2.05
Effective July 1, 2015 the monthly residential refuse and recycling service rates are:
STANDARD SERVICE RATES mmr SENIOR CITIZEN SERVICE RATES
2015 # Green Total 2015 # Green
Base GW Waste Recycling AB 939 Monthly Service Base GW Waste Recycling
Rate carts Rate Charge Fee Fee Category Rate carts Rate Charge
$15.90
1
$2.41
$15.90
2
$3.45
$15.90
3
$4.66
$15.90
4
$5.77
$15.90
5
$7.07
Single Family
$19.49
1
$2.41
Dwelling, (1)
$19.49
2
$3.45
90 Gallon Can
$19.49
3
$4.66
Recycling Contamination Fee:
$19.49
4
$5.77
Three Day Rental $133.72
$19.49
5
$7.07
Monthly Per >5
$1.17
* This pricing applies only to residents
that exceed the 4 free Bulky Item collections
Additional Can
$24.02
Dwelling, (1) $17.58 2
$3.10
(Greenwaste)
$25.22
90 Gallon Can $17.58 3
$4.20
Single Family 64g
$12.21
$17.58 4
$5.20
Dwelling, (1) 96g
$12.41
$17.58 5
$6.38
Time Per Can
$1.17
Monthly Per >5 $1.07
Unscheduled Pickup
Additional Can
Monthly Per 64g
$8.59
(Greenwaste)
Additional Can 96g
$10.58
Single Family 64g $10.99
BN Automated
$59.73
Dwelling, (1) 96g $11.16
Collection Ser.
Time Per Can
BN Collection $18.81
1 Time P/U
Per Can
$0.78
$0.78
$0.78
$0.78
$0.78
$0.78
$0.78
$0.78
$0.78
$0.78
$0.00
$0.00
$0.00
$0.00
$0.78
$0.00
BN Additional $15.88
$0.00
Container
$2.18
*Bulky Item P/U $39.51
$0.00
Sharps Program $34.01 Size
- One Quart Additional sizes available
$44.50 Size
- One Quart Additional sizes available
Reactivation Cutoff F per occurrence
$36.89
Recycling Contamination Fee:
$15.81
Temporary 3 - Yard Bin Service:
$5.20
Three Day Rental $133.72
$24.05
Seven Day Rental $160.32
$6.38
Additional Rate Per D $7.55
$22.97
* This pricing applies only to residents
that exceed the 4 free Bulky Item collections
$0.30
$19.381
Single Family $14.35 1
$2.18
$0.30
$20.43
Dwelling, (1) $14.35 2
$3.10
$0.30
$21.64
60 Gallon Can $14.35 3
$4.20
$0.30
$22.75
$14.35 4
$5.20
$0.30
$24.05
$14.35 5
$6.38
$0.30
$22.97
Single Family $17.58 1
$2.18
$0.30
$24.02
Dwelling, (1) $17.58 2
$3.10
$0.30
$25.22
90 Gallon Can $17.58 3
$4.20
$0.30
$26.34
$17.58 4
$5.20
$0.30
$27.64
$17.58 5
$6.38
$1.17
Monthly Per >5 $1.07
Additional Can
(Greenwaste)
$0.00
$12.21
Single Family 64g $10.99
$0.00
$12.41
Dwelling, (1) 96g $11.16
Time Per Can
Unscheduled Pickup
$0.00
$8.5
Monthly Per 64g $7.73
$0.00
$10.5
Additional Can 96g $9.56
$0.30
$60.8
BN Automated $54.50
Collection Ser.
$0.00
$18.8
BN Collection $16.93
1 Time P/U
Per Can
$0.00
$15.88
BN Additional $14.34
Container
$0.00
$39.51
*Bulky Item P/U $35.55
$34.01
Sharps Program $34.01 Size -One
Quart
$44.50
$44.50 Size -
One Quart
Reactivation Cut /off F per occurrence
$36.89
Recycling Contamination Fee:
$15.81
Temporary Roll -Off Bin Serivice:
$133.72
Rates are negotiated under the commercial
non - exclusive contract
$160.32
$7.55
Reactivation Cut /Off per occurance
$36.89
Total
AB 939 Monthly
Fee Rate
$U. /8
$U. 3u
$1/.61
$0.78
$0.30
$18.53
$0.78
$0.30
$19.63
$0.78
$0.30
$20.63
$0.78
$0.30
$21.81
$0.78
$0.30
$20.84
$0.78
$0.30
$21.76
$0.78
$0.30
$22.86
$0.78
$0.30
$23.86
$0.78
$0.30
$25.04
$1.07
$0.00
$0.00
$10.99
$0.00
$0.00
$11.16
$0.00
$0.00
$7.73
$0.00
$0.00
$9.56
$0.78
$0.30
$55.58
$0.00
$0.00
$16.93
$0.00
$0.00
$14.34
$0.00
$0.00
$35.55
Additional sizes available
$34.01
Additional sizes available
$44.50
Exhibit "A"
City of Arcadia
Refuse Collection Service
Multi- family
Base Rate Schedule
2015 -2016
2.05
Number of Bins
STAB RATE
0
and size
NUMBER OF PICK -UPS PER -WEEK
1
2
3
4
5
6
1 - 1.5 Yard
$96.82
$193.64
$290.46
$417.37
$484.09
$580.90
2 - 1.5 yard
$176.03
$352.07
$528.08
$704.07
$880.14
$1,056.15
3- 1.5yard
$264.04
$528.09
$792.13
$1,056.18
$1,32021
$1,58429
4- 1.5yard
$352.09
$704.15
$1,05620
$1,40827
$1,760.36
$2,112.41
5 - 1.5 yard
$440.07
$880.18
$1,32025
$1,760.37
$2,200.46
$2,640.55
1 - 3 yard
$115.35
$214.18
$346.02
$461.36
$576.74
$692.06
2 - 3 yard
$205.95
$428.41
$617.83
$823.75
$1,029.70
$1,235.63
3 -3yard
$296.62
$642.59
$889.76
$1,186.34
$1,482.94
$1,779.53
4 -3yard
$38721
$856.76
$1,161.59
$1,548.79
$1,935.99
$2,182.18
5 -3yard
$477.86
$1,070.94
$1,433.51
$1,911.31
$2,389.16
$2,866.95
1 -6yard
$216.16
$432.35
$648.48
$864.65
$1,080.81
$1,296.99
Numberof Bins
DISMOUNT RATE
and Size
NUMBER OF PICK -UPS PER WEEK
1
2
3
4
5
6
1 - 1.5 yard
$109.16
$218.33
$327.48
$436.63
$545.79
$654.95
2 - 1.5 yard
$198.48
$396.95
$595.44
$793.91
$992.36
$1,190.84
3 -1.5 yard
$297.70
$595.38
$893.08
$1,190.77
$1,488.47
$1,786.12
4- 1.5yard
$396.92
$793.88
$1,190.78
$1,587.70
$1,928.95
$2,381.58
5 - 1.5 yard
$496.18
$992.32
$1,488.50
$1,984.66
$2,480.83
$2,977.00
1 - 3 yard
$130.09
$236.87
$376.89
$502.40
$628.15
$753.74
2 -3yard
$228.63
$473.66
$685.83
$914.47
$1,143.07
$1,371.69
3 -3yard
$331.58
$710.06
$994.74
$1,326.33
$1,657.92
$1,989.50
4 -3yard
$434.54
$947.39
$1,303.65
$1,73820
$2,172.78
$2,60728
5 -3yard
$537.57
$1,18427
$1,612.61
$2,150.17
$2,687.71
$3,22524
1 -6yard
$236.64
$473.31
$709.90
$946.53
$1,183.14
$1,419.79
Number of Bins
STAGE RATE
and Size
NUMBER OF PICK -UPS PER WEEK
1
2
3
4
5
6
1 - 1.5 yard
$119.43
$238.90
$358.32
$477.76
$59720
$716.63
2 - 1.5 yard
$21721
$434.39
$651.59
$868.76
$1,085.95
$1,303.15
3 -1.5 yard
$325.81
$651.60
$977.39
$1,303.17
$1,628.97
$1,954.75
4- 1.5yard
$434.40
$868.78
$1,30320
$1,737.57
$2,172.00
$2,606.38
5- 1.5yard
$542.99
$1,085.96
$1,628.94
$2,171.95
$2,714.93
$3,257.92
1 - 3 yard
$135.90
$257.44
$407.80
$543.72
$679.65
$815.57
2 -3yard
$250.93
$514.91
$753.74
$1,004.99
$1,25627
$1,507.52
3 -3yard
$366.61
$772.32
$1,099.80
$1,466.40
$1,832.99
$2,199.58
4 -3yard
$481.95
$1,029.78
$1,445.87
$1,927.84
$2,409.80
$2,891.77
5 - 3 yard
$59726
$1,28722
$1,791.80
$2,389.05
$2,986.35
$3,583.61
1 -6yard
$256.89
$513.85
$770.66
$1,027.55
$1,284.42
$1,541.34
Additional pick -up
1.5 yard
$56.91
3 yard
$74.09
6yard
$117.05
Reactivation /Cut off
fee
$36.89
"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
Exhibit "A"
City of Arcadia
Refuse and Recycling Collection Service
Single- family Base Rate Schedule
2015/2016
2.05%
Single Family Greenwaste Bin Service: Includes one (1) greenwaste bin,
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 $119.43 $107.57
1 - 3 yard $135.89 $122.32
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.
1 - 1.5 yard $144.01 $129.61
1 - 3 yard $160.14 $144.12
Reactivation /Cut off fee - $ 36.89