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HomeMy WebLinkAboutItem 3a - Resolution No. 7069 Re. Residential Refuse RateG�IIFOgnt9`y� * a ' —d AuBUSt i, IY03 C ° -.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 h Oa �e 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 a 5 e e `� \ a w\ a � e e a � e��aQ,�t at � t a ;` o Pti�� 5 4o as a P 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. 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[1 1 a v5 [n c m O0000 m6>mm mn mm m oo O uNNIn y, mOQ W m "LVv mu) r N m m oLD nMIn uaus n n[ rna cs a m NN cvci a m m my Zmcir� N fA 9 w VR iR 6% vs 69 yr 69 69 6% W v3 � in w) � � o m co 1A p C N 6s n ? n.Q c oc OL u. m Q o mm area cn c�cn a mrn .a �E Y u a v EAU '7 �urs tip? up Eno 'm -ao �� Eoo wa— a}a m°' mrom= yam�m v�m Y °� D Yo pa0c 67 `� rnm C7 vim CJ ca �1 asm 4s cv ao U EU ¢`c '� m c�i E sas' E3o a ooh S3Ec ov �6 2'M=a`s o mt as a ov1- 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