HomeMy WebLinkAboutItem 12a - Residential Refuse and Recyclable Service Rates
DATE: June 16, 2020
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Vanessa Hevener, Environmental Services Officer
SUBJECT: RESOLUTION NO. 7306 SETTING SERVICE RATES FOR THE
COLLECTION OF RESIDENTIAL REFUSE AND RECYCLABLES
PURSUANT TO SECTION 5120.7 OF THE 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 approval. Waste Management has submitted a request
to adjust the single family and multi-family refuse rates by 2.98% for Fiscal Year 2020-
2021. Even with the proposed rate adjustment, the City’s residential refuse rates will
remain among the lowest 1/3 in the San Gabriel Valley compared to cities with similar
services. It is recommended that the City Council approve Resolution No. 7306, which
will set service rates for the collection of residential refuse and recyclables.
BACKGROUND
In June 2016, the City Council approved a contract amendment with WM for a five-year
rate adjustment schedule in accordance with Proposition 218 requirements. This is the
last year of the approved rate adjustment schedule for single-family and multi-family rates.
The amended contract requires that WM receive City Council approval for annual rate
adjustments subject to a standardized formula. The rate adjustment formula consists of
three weighted indices: Consumer Price Index (“CPI”) (65% of the total); Disposal/Green
Waste Facility Index (30%); and Producer Price Index (“PPI”) for fuel (5%). Resolution
No. 7306 is attached for adoption and includes, as part of the Resolution, the proposed
rate schedules.
Resolution No. 7306 setting Residential Refuse and
Recyclable Service Rates
June 16, 2020
Page 2 of 4
DISCUSSION
On March 4, 2020, WM submitted a request for a service rate adjustment. The CPI
change was measured from the annual average for calendar year 2018 and 2019 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 green waste and the
ratio of trash and green waste generated by single-family and multi-family properties in
the City. The Producer Price Index (“PPI”) for fuel, as published by the United States
Department of Energy, is used for the final component of the adjustment formula.
Table 1 shows the percentage breakdown and weighted amount that is accounted for in
each index that makes up the rate adjustment:
Table 1: Rate Adjustment Formula
Rate Component %
CPI
% of
Tonnage
Adjustment due
to change in
indices/change
in disposal fees
Relative
Weight
of Rate
Weighted Rate
Adjustment
Percentage
Service – CPI 75% 2.30% 65% 1.49%
Fuel - Alternative 11.02% 5% 0.55%
Disposal/
Green
Waste
Facility
Municipal
Solid Waste 55% 3.05%
30%
0.50%
Green
Waste 45% 3.21% 0.44%
Total 100% 2.98%
For the past several years, a $0.94 pass thru fee for all residential green waste was
imposed to address WM’s increased operational and hauling costs due to the
Huanglongbing (“HLB”) disease. The fee will remain in effect, as the California
Department of Food & Agriculture has not lifted the HLB quarantine area, which includes
the City of Arcadia. The Huanglongbing disease, also known as citrus greening disease,
destroys fruit production, producing bitter, inedible fruit, and is ultimately fatal to citrus
trees (there is no cure). The State requires that green waste generated inside of a
quarantine area be separated from all other green waste and taken to either a landfill or
composting facility which has been certified by the State to accept the quarantined green
waste. In the event that the quarantine area is lifted, the pass thru fee will be removed
from the customer’s bill.
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, as well as their ability to provide the most efficient and effective refuse and
recycling services to Arcadia residents. In addition, WM has shouldered the cost of
Resolution No. 7306 setting Residential Refuse and
Recyclable Service Rates
June 16, 2020
Page 3 of 4
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 recycling outreach/education; and pre-defined rates for
emergency collection and disposal services. WM has also been a community partner by
providing services above and beyond the contract terms including providing
trash/recycling services during special community events (e.g., Taste of Arcadia,
Downtown Business Association Patriotic Festival, Arcadia Firefighters Association
Pancake Breakfast, etc.). In accordance with the Residential Refuse and Recycling
Agreement, Waste Management is entitled to an annual rate adjustment subject to rate
adjustment criteria in the Agreement. Based on the contractor’s service record and their
commitment to providing excellent refuse and recycling services, staff concurs with WM’s
request for a 2.98% rate adjustment for single and multi-family refuse collection services,
effective July 1, 2020.
A refuse rate survey conducted in April 2020 shows that the City of Arcadia’s refuse rates
are among the lowest one-third of cities surveyed in the San Gabriel Valley, even with the
proposed rate increase and the HLB quarantine fee. Many of the cities listed have not
yet increased their refuse rates for Fiscal Year 2020-21.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
Residential Refuse Rate Survey
Resolution No. 7306 setting Residential Refuse and
Recyclable Service Rates
June 16, 2020
Page 4 of 4
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 2.98% increase in fees in the
coming year. For the average residential customer, this increase will be approximately
$0.58 per month.
RECOMMENDATION
It is recommended that the City Council determine that this project is exempt under the
California Environmental Quality Act (“CEQA”); adopt Resolution No. 7306 setting service
rates for the collection of residential refuse and recyclables pursuant to Section 5120.7 of
the Arcadia Municipal Code.
Attachment: Resolution No. 7306
City of Arcadia Residential Refuse and Recycling Collection Service
STANDARD SERVICE RATES SENIOR CITIZEN SERVICE RATES
2020 # Green Green Total 2020 # Green Green Total
Service Base GW Waste Waste Recycling AB 939 Monthly Service Base GW Waste Waste Recycling AB 939 Monthly
Category Rate carts Rate Contamination Charge Fee Fee Category Rate carts Rate Contamination Charge Fee Rate
Single Family $17.43 1 $2.64 $0.94 $0.78 $0.30 $22.09 Single Family $15.74 1 $2.39 $0.94 $0.78 $0.30 $20.15
Dwelling, (1) $17.43 2 $3.78 $1.88 $0.78 $0.30 $24.17 Dwelling, (1) $15.74 2 $3.40 $1.88 $0.78 $0.30 $22.10
60 Gallon Can $17.43 3 $5.11 $2.82 $0.78 $0.30 $26.44 60 Gallon Can $15.74 3 $4.60 $2.82 $0.78 $0.30 $24.24
$17.43 4 $6.33 $3.76 $0.78 $0.30 $28.60 $15.74 4 $5.71 $3.76 $0.78 $0.30 $26.29
$17.43 5 $7.75 $4.70 $0.78 $0.30 $30.96 $15.74 5 $7.00 $4.70 $0.78 $0.30 $28.52
Single Family $21.37 1 $2.64 $0.94 $0.78 $0.30 $26.03 Single Family $19.28 1 $2.39 $0.94 $0.78 $0.30 $23.69
Dwelling, (1) $21.37 2 $3.78 $1.88 $0.78 $0.30 $28.11 Dwelling, (1) $19.28 2 $3.40 $1.88 $0.78 $0.30 $25.64
90 Gallon Can $21.37 3 $5.11 $2.82 $0.78 $0.30 $30.38 90 Gallon Can $19.28 3 $4.60 $2.82 $0.78 $0.30 $27.78
$21.37 4 $6.33 $3.76 $0.78 $0.30 $32.54 $19.28 4 $5.71 $3.76 $0.78 $0.30 $29.83
$21.37 5 $7.75 $4.70 $0.78 $0.30 $34.90 $19.28 5 $7.00 $4.70 $0.78 $0.30 $32.06
Monthly Per >5 $1.29 $0.94 $2.23 Monthly Per >5 $1.17 $0.94 $2.11
Additional Can Additional Can
(Greenwaste) (Greenwaste)
Single Family 64g $13.39 $0.94 $0.00 $0.00 $14.33 Single Family 64g $12.05 $0.94 $0.00 $0.00 $12.99
Dwelling, (1) 96g $13.61 $0.94 $0.00 $0.00 $14.55 Dwelling, (1) 96g $12.23 $0.94 $0.00 $0.00 $13.17
Time Per Can Time Per Can
Unscheduled Pickup Unscheduled Pickup
Monthly Per 64g $9.42 $0.00 $0.00 $9.42 Monthly Per 64g $8.48 $0.00 $0.00 $8.48
Additional Can 96g $11.61 $0.00 $0.00 $11.61 Additional Can 96g $10.48 $0.00 $0.00 $10.48
B/Y Automated $65.51 $0.78 $0.30 $66.59 B/Y Automated $59.77 $0.78 $0.30 $60.85
Collection Ser. $0.00 Collection Ser.
B/Y Collection $20.63 $0.00 $0.00 $20.63 B/Y Collection $18.57 $0.00 $0.00 $18.57
1 Time P/U 1 Time P/U
Per Can Per Can
B/Y Additional $17.41 $0.00 $0.00 $17.41 B/Y Additional $15.73 $0.00 $0.00 $15.73
Container Container
*Bulky Item P/U $43.33 $0.00 $0.00 $43.33 *Bulky Item P/U $38.99 $0.00 $0.00 $38.99
**GW Bulky Item P/U $43.33 $0.94 $0.00 $0.00 $44.27 **GW Bulky Item P/U $38.99 0.94 $0.00 $0.00 $39.93
Sharps Program $37.30 Size - One Quart Additional sizes available $37.30 Sharps Program $37.30 Size - One Quart Additional sizes available $37.30
$48.80 Size - One Quart Additional sizes available $48.80 $48.80 Size - One Quart Additional sizes available $48.80
Bear Cart Unlock - Per Cart $7.67 Bear Cart Unlock - Per Cart $7.67
Reactivation Cut/off Fee per occurrence $43.33 Reactivation Cut/off Fee per occurrence $43.33
Recycling Contamination Fee:$43.33 Recycling Contamination Fee: $43.33
Temporary 3 - Yard Bin Service: Temporary Roll-Off Bin Service:
Three Day Rental $146.64 $146.64 Rates are negotiated under the commercial non-exclusive contract
Seven Day Rental $175.82 $175.82
Additional Rate Per Day $8.28 $8.28
**Extra greenwaste bags (up to 4 bags)**Extra greenwaste bags (up to 4 bags)
* This pricing applies only to residents that exceed the 4 free Bulky Item collections * This pricing applies only to residents that exceed the 4 free Bulky Item collections
Single Family Rate Schedule - 2.98%
Exhibit 'A"
Effective July 1, 2020 the monthly residential refuse and recycling service rates are:
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 Bins
and Size Base Rate G/W
Contamination Total Rate Sr Discount
Rate
G/W
Contamination Total Rate
1 - 1.5 yard $130.99 $2.53 $133.52 $117.97 $2.53 $120.50
1 - 3 yard $149.04 $5.07 $154.11 $134.15 $5.07 $139.22
Number of Bins
and Size Base Rate G/W
Contamination Total Rate Sr Discount
Rate
G/W
Contamination Total Rate
1 - 1.5 yard $243.63 $5.07 $248.70 $219.44 $5.07 $224.51
1 - 3 yard $277.21 $10.13 $287.34 $249.53 $10.13 $259.66
Backyard Bin Service
Waste Management enters residents backyard, rolls out their greenwaste
bin and refuse/recycling containers to the curb, empties them, then return
Number of Bins
and Size Base Rate G/W
Contamination Total Rate Sr Discount
Rate
G/W
Contamination Total Rate
1 - 1.5 yard $157.94 $2.53 $160.47 $142.15 $2.53 $144.68
1 - 3 yard $175.64 $5.07 $180.71 $158.06 $5.07 $163.13
Number of Bins
and Size Base Rate G/W
Contamination Total Rate Sr Discount
Rate
G/W
Contamination Total Rate
1 - 1.5 yard $293.77 $5.07 $298.84 $264.40 $5.07 $269.47
1 - 3 yard $326.67 $10.13 $336.80 $294.00 $10.13 $304.13
Reactivation/Cut off fee 40.45$
Exhibit "A"
City of Arcadia
Refuse and Recycling Collection Service
Single-family Base Rate Schedule
2020/2021
2.98%
Single Family Greenwaste Bin Service: Includes one (1) greenwaste bin, one (1) refuse and one (1) recycling container serviced
1x Per Week Collection
2x Per Week Collection
them to their original location on the same day.
1x Per Week Collection
2x Per Week Collection
Exhibit "A"
City of Arcadia
Refuse Collection Service
Multi-family Base Rate Schedule
2020-2021
2.98%
Number of Bins STAB RATE
and size NUMBER OF PICK-UPS PER-WEEK
123456
1 - 1.5 Yard $106.18 $212.36 $318.54 $457.72 $530.88 $637.05
2 - 1.5 yard $193.05 $386.10 $579.13 $772.13 $965.22 $1,158.25
3 - 1.5 yard $289.56 $579.14 $868.71 $1,158.28 $1,447.84 $1,737.44
4 - 1.5 yard $386.12 $772.22 $1,158.30 $1,544.40 $1,930.54 $2,316.62
5 - 1.5 yard $482.62 $965.26 $1,447.88 $1,930.55 $2,413.17 $2,895.81
1 - 3 yard $126.50 $234.89 $379.47 $505.96 $632.49 $758.96
2 - 3 yard $225.86 $469.83 $677.56 $903.38 $1,129.24 $1,355.07
3 - 3 yard $325.29 $704.71 $975.77 $1,301.02 $1,626.29 $1,951.55
4 - 3 yard $424.64 $939.58 $1,273.88 $1,698.51 $2,123.14 $2,393.13
5 - 3 yard $524.05 $1,174.47 $1,572.08 $2,096.08 $2,620.12 $3,144.09
1 - 6 yard $237.06 $474.14 $711.17 $948.23 $1,185.29 $1,422.37
Number of Bins DISMOUNT RATE
and Size NUMBER OF PICK-UPS PER WEEK
123456
1 - 1.5 yard $119.70 $239.41 $359.10 $478.80 $598.49 $718.19
2 - 1.5 yard $217.67 $435.33 $653.00 $870.65 $1,088.29 $1,305.95
3 - 1.5 yard $326.48 $652.93 $979.41 $1,305.88 $1,632.36 $1,958.78
4 - 1.5 yard $435.29 $870.62 $1,305.89 $1,741.18 $2,115.42 $2,611.80
5 - 1.5 yard $544.15 $1,088.24 $1,632.39 $2,176.51 $2,720.65 $3,264.79
1 - 3 yard $142.67 $259.77 $413.32 $550.96 $688.87 $826.60
2 - 3 yard $250.74 $519.45 $752.12 $1,002.87 $1,253.57 $1,504.29
3 - 3 yard $363.63 $778.70 $1,090.90 $1,454.54 $1,818.18 $2,181.82
4 - 3 yard $476.55 $1,038.98 $1,429.67 $1,906.23 $2,382.82 $2,859.32
5 - 3 yard $589.54 $1,298.75 $1,768.50 $2,358.03 $2,947.52 $3,537.01
1 - 6 yard $259.52 $519.06 $778.53 $1,038.03 $1,297.51 $1,557.04
Number of Bins STAGE RATE
and Size NUMBER OF PICK-UPS PER WEEK
123456
1 - 1.5 yard $130.97 $261.99 $392.96 $523.94 $654.93 $785.90
2 - 1.5 yard $238.20 $476.39 $714.58 $952.74 $1,190.92 $1,429.13
3 - 1.5 yard $357.31 $714.59 $1,071.87 $1,429.15 $1,786.44 $2,143.71
4 - 1.5 yard $476.40 $952.76 $1,429.18 $1,905.54 $2,381.96 $2,858.33
5 - 1.5 yard $595.48 $1,190.93 $1,786.40 $2,381.91 $2,977.38 $3,572.86
1 - 3 yard $149.03 $282.33 $447.22 $596.29 $745.35 $894.41
2 - 3 yard $275.18 $564.68 $826.60 $1,102.14 $1,377.71 $1,653.25
3 - 3 yard $402.05 $846.98 $1,206.11 $1,608.16 $2,010.18 $2,412.21
4 - 3 yard $528.53 $1,129.33 $1,585.63 $2,114.20 $2,642.76 $3,171.31
5 - 3 yard $654.99 $1,411.65 $1,965.01 $2,620.00 $3,275.03 $3,930.03
1 - 6 yard $281.72 $563.53 $845.16 $1,126.88 $1,408.58 $1,690.33
Additional pick-up 1.5yard $62.42
3yard $81.25
6yard $128.36
Reactivation/Cut off fee $40.46
Locking Lid Fee $13.07 Per container, per service, per month
Container Overage $54.83 Per occurrence
*Please add the following fees to the rates listed above:
Recycling Fee (Reso # 6269):
2-6 units = $1.50 per unit
7 or more units = $2.00 per unit
AB 939 Fee = $0.30 per unit
Exhibit "A"
City of Arcadia
Recycle Collection Service
Multi-family Base Rate Schedule
2020-2021
2.98%
Number of Bins STAB RATE
and size NUMBER OF PICK-UPS PER-WEEK
123456
96 Gallon Cart $27.00 $54.01 $81.01 $108.03 $135.03 $162.04
1 - 1.5 Yard $40.51 $81.01 $121.53 $162.04 $202.54 $243.05
2 - 1.5 yard $81.01 $162.04 $243.05 $324.07 $405.08 $486.11
3 - 1.5 yard $121.53 $243.05 $364.58 $486.11 $607.63 $729.16
4 - 1.5 yard $162.04 $324.07 $486.11 $648.14 $810.17 $972.20
5 - 1.5 yard $202.54 $405.08 $607.63 $810.17 $1,012.72 $1,215.26
1 - 3 yard $53.80 $107.59 $161.39 $215.19 $268.97 $322.77
2 - 3 yard $107.59 $215.19 $322.77 $430.36 $537.96 $645.55
3 - 3 yard $161.39 $322.77 $484.16 $645.55 $806.93 $968.32
4 - 3 yard $215.19 $430.36 $645.55 $860.73 $1,075.91 $1,291.09
5 - 3 yard $268.97 $537.96 $806.93 $1,075.91 $1,344.89 $1,613.87
Number of Bins DISMOUNT RATE
and size NUMBER OF PICK-UPS PER-WEEK
123456
1 - 1.5 Yard $45.77 $91.55 $137.32 $183.10 $228.87 $274.65
2 - 1.5 yard $91.55 $183.10 $274.65 $366.20 $457.75 $549.30
3 - 1.5 yard $137.32 $274.65 $411.97 $549.30 $686.62 $823.94
4 - 1.5 yard $183.10 $366.20 $549.30 $732.39 $915.49 $1,098.59
5 - 1.5 yard $228.87 $457.75 $686.62 $915.49 $1,144.37 $1,373.25
1 - 3 yard $60.79 $121.58 $182.37 $243.16 $303.95 $364.73
2 - 3 yard $121.58 $243.16 $364.73 $486.31 $607.89 $729.47
3 - 3 yard $182.37 $364.73 $547.10 $729.47 $911.84 $1,094.20
4 - 3 yard $243.16 $486.31 $729.47 $972.63 $1,215.78 $1,458.94
5 - 3 yard $303.95 $607.89 $911.84 $1,215.78 $1,519.73 $1,823.67
Number of Bins STAGE RATE
and size NUMBER OF PICK-UPS PER-WEEK
123456
1 - 1.5 Yard $49.82 $99.65 $149.48 $199.31 $249.13 $298.95
2 - 1.5 yard $99.65 $199.31 $298.95 $398.60 $498.26 $597.91
3 - 1.5 yard $149.48 $298.95 $448.43 $597.91 $747.39 $896.86
4 - 1.5 yard $199.31 $398.60 $597.91 $797.21 $996.52 $1,195.81
5 - 1.5 yard $249.13 $498.26 $747.39 $996.52 $1,245.65 $1,494.76
1 - 3 yard $66.16 $132.34 $198.50 $264.68 $330.84 $397.01
2 - 3 yard $132.34 $264.68 $397.01 $529.35 $661.69 $794.03
3 - 3 yard $198.50 $397.01 $595.51 $794.03 $992.53 $1,191.04
4 - 3 yard $264.68 $529.35 $794.03 $1,058.70 $1,323.38 $1,588.04
5 - 3 yard $330.84 $661.69 $992.53 $1,323.38 $1,654.22 $1,985.06
96 Gallon Valet Service $21.84