The URL can be used to link to this page

Home My WebLink AboutItem 10b - Amending Refuse and Recyclable Service RatesResolution No. 7590 Amending Refuse and Recyclable Service Rates September 17, 2024 Page 1 of 4 DATE: September 17, 2024 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Briget Arndell, Environmental Services Manager SUBJECT: RESOLUTION NO. 7590 AMENDING RESOLUTION NO. 7562, SETTING SERVICE RATES FOR THE COLLECTION OF RESIDENTIAL REFUSE AND RECYCLABLES PURSUANT TO SECTION 5120.7 OF THE ARCADIA MUNICIPAL CODE FOR FISCAL YEAR 2024-25 CEQA: Not a Project Recommendation: Adopt SUMMARY On June 4, 2024, City Council adopted Resolution No. 7562, setting the Fiscal Year 2024- 25 service rates for the collection of residential refuse and recyclables. Due to a calculation error, the rates in the Single-Family Organics Carts table included in Exhibit “A” – City of Arcadia Refuse Rates 2024-2025, were incorrect. All other adopted rate tables have been reviewed by staff and are correct. For this reason, it is recommended that the City Council correct the Single-Family Organics Carts rate table by adopting Resolution No. 7590 amending Resolution No. 7562, setting rates for the collection of residential refuse and recyclables pursuant to Section 5120.7 of the Arcadia Municipal Code for Fiscal Year 2024-25. BACKGROUND Waste Management Inc. (“WM”) has been the City’s exclusive residential and multi-family refuse and recycling hauler since 1999. The current Residential Refuse and Recycling Agreement (“Agreement”) was executed in March 2009 and included a seven-year term, which expired on June 30, 2016. In October 2013, the City Council executed the First Amendment to the Agreement for an additional five years through June 2021. On June 15, 2021, the City Council approved the Second Amendment to the Agreement with WM, approving a five-year rate adjustment schedule in accordance with Proposition 218 requirements. The extended agreement included the following: • An Administrative Fee – a fee that the City can charge for administering the contractor agreement; • New and/or enhanced services such as a community mulch giveaway event; two community document shredding events; bins for tree trimming and miscellaneous Resolution No. 7590 Amending Refuse and Recyclable Service Rates September 17, 2024 Page 2 of 4 debris removal at sites designated by the City; and trash and recycling collection for five non-City events; • 10-year term expiring on June 30, 2031; and • Compliance with new laws and regulations (AB 341, AB 1826, and SB 1383) requiring cities and counties, including the City of Arcadia, to develop and implement new organics recycling programs impacting all solid waste generators. The amended contract also required that WM receive City Council approval for annual rate adjustments subject to the new rate adjustment formula, which included two indices: a Disposal/Diversion Component and a Service Component. The new methodology is easier for all parties and interested persons to understand, and more accurately reflects the cost parameters of the waste hauler. DISCUSSION On June 4, 2024, the City Council adopted Resolution No. 7562, setting the service rates for the collection of residential refuse and recyclables pursuant to Section 5120.7 of the Arcadia Municipal Code for Fiscal Year 2024-25. The rates reflected a 4.48% adjustment to the single-family and multi-family refuse rates. Due to a calculation error, Resolution No. 7562, Exhibit “A” – City of Arcadia Refuse Rates 2024-2025 included incorrect rates in the table titled “Single-Family Organics Carts”. These rates resulted in an overcharge ranging from $0.18 - $0.68 that impacted approximately 10,000 Waste Management (“WM”) customers for one billing cycle. WM has since corrected the rates and issued a credit to all affected customers. The corrected rates and credits will be reflected on the next billing cycle that will be sent in November. The City is now amending its refuse and recycling rates resolution so the correct rates are reflected in the Arcadia Municipal Code. Table 1 below shows the corrected rates that reflect the approved 4.48% increase for FY 2024-25. These rates will replace the incorrect rates, as shown in Table 2. Table 1: Correct Rate Table Single-Family Organics Carts Number of Carts 1 2 3 4 5 6 64gal Std Organics Cart $ 11.69 $ 16.73 $ 22.62 $ 28.04 $ 34.33 $ 40.02 64gal Senior Organics Cart $ 10.57 $ 15.04 $ 20.37 $ 25.27 $ 30.99 $ 36.18 96gal Std Organics Cart $ 11.69 $ 16.73 $ 22.62 $ 28.04 $ 34.33 $ 40.02 96gal Senior Organics Cart $ 10.57 $ 15.04 $ 20.37 $ 25.27 $ 30.99 $ 36.18 Resolution No. 7590 Amending Refuse and Recyclable Service Rates September 17, 2024 Page 3 of 4 Table 2: Incorrect Rate Table Single-Family Organics Carts Number of Carts 1 2 3 4 5 6 64gal Std Organics Cart $ 11.89 $ 17.01 $ 23.00 $ 28.51 $ 34.90 $ 40.70 64gal Senior Organics Cart $ 10.75 $ 15.30 $ 20.72 $ 25.70 $ 31.51 $ 36.79 96gal Std Organics Cart $ 11.89 $ 17.01 $ 23.00 $ 28.51 $ 34.90 $ 40.70 96gal Senior Organics Cart $ 10.75 $ 15.30 $ 20.72 $ 25.70 $ 31.51 $ 36.79 Based on the revised table, it is recommended that City Council adopt Resolution No. 7590 amending Resolution No. 7562, setting the service rates for the collection of residential refuse and recyclables pursuant to Section 5120.7 of the Arcadia Municipal Code for Fiscal Year 2024-25. ENVIRONMENTAL ANALYSIS The proposed action of amending the rates listed in the resolution does not constitute a project under the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, as it can be determined with certainty that it will have no impact on the environment. FISCAL IMPACT Residential refuse and recycling collection services are considered 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, some customers were overcharged by an amount ranging from $0.18 - $0.68 on their first Waste Management service bill, since rate implementation on July 1, 2024. The incorrect rates only affected the first billing cycle and have since been corrected; credits will be issued on all impacted accounts. These changes will be reflected on the next Waste Management bill sent out in November. RECOMMENDATION It is recommended that the City Council determine that this item does not constitute a project under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7590 amending Resolution No. 7562, setting service rates for the collection of residential refuse and recyclables pursuant to Section 5120.7 of the Arcadia Municipal Code for Fiscal Year 2024-25. Resolution No. 7590 Amending Refuse and Recyclable Service Rates September 17, 2024 Page 4 of 4 Attachment: Resolution No. 7590 1 RESOLUTION NO. 7590 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING RESOLUTION NO. 7562, SETTING SERVICE RATES FOR THE COLLECTION OF RESIDENTIAL REFUSE AND RECYCLABLES PURSUANT TO SECTION 5120.7 OF THE ARCADIA MUNICIPAL CODE FOR FISCAL YEAR 2024-25 WHEREAS, City Council Resolution No. 7562 approved various rates for collection of residential refuse and recyclables in the City of Arcadia; and WHEREAS, the proposed annual rate adjustments for Fiscal Year 2024-25 were presented to and approved by the City Council at its June 4, 2024, regularly scheduled City Council meeting; and WHEREAS, Resolution No. 7590 provides for an amendment to the Single-Family Organic Carts rate table to correct inaccurate rates listed in Resolution No. 7562. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. Effective upon the next monthly bill following adoption of this Resolution, the monthly rates for collection services of Single-Family Organics Carts for Fiscal Year 2024-25 shall be those set forth in the correct rate table in Exhibit "A" attached hereto. SECTION 2. Effective upon the next monthly bill, incorrect monthly rates for collection services of single-family organic rates for Fiscal Year 2024-25 will be credited according to those set forth in the correct rate table in Exhibit "A" attached hereto. SECTION 3. The City Council hereby approves the changes to Resolution No. 7562 as set forth by Resolution No. 7590 as attached hereto, effective retroactively from July 1, 2024, through June 30, 2024.