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HomeMy WebLinkAboutItem 3c: Proposition 218 Ballotting Procedures for Refuse Rates for 2011/2012 to 2015/2016 7 • ill !.. ireA. t- 0 I..wp.NM - 1 //�� Ayv.. I.IMI F �i � 441 214 of W �� STAFF REPORT Public Works Services Department DATE: April 5, 2011 TO: Mayor and City Council FROM: Tom Tait, Public Works Services Director Prepared by: Vanessa Hevener, Environmental Services Officer SUBJECT: DIRECT THE PUBLIC WORKS SERVICES DEPARTMENT TO FOLLOW PROPOSITION 218 BALLOTING PROCEDURES FOR REFUSE RATES AND CONDUCT A PUBLIC HEARING AT THE JUNE 7, 2011 COUNCIL MEETING WITH A PREPARED RESOLUTION AUTHORIZING THE PROPOSED REFUSE RATES SCHEDULE PER TERMS OF AGREEMENT WITH WASTE MANAGEMENT FOR FISCAL YEARS 2011/12, 2012/13, 2013/14,2014/15, 2015/16 Recommendation: Approve SUMMARY In accordance with the Residential Refuse and Recycling Agreement between the City of Arcadia and Waste Management, Inc., Waste Management (WM) has calculated an increase to the refuse collection rates based on a rate adjustment formula consisting of three (3) weighted indices: • Consumer Price Index (CPI) (65 %) • Disposal /Green Waste Facility Index (30 %) • Producer Price Index (PPI) for fuel (5 %) For single- family, the rate will increase 2.84% or $0.56, changing the standard monthly service from $19.65 to $20.21 (this does not include $0.30 AB 939 fee and $0.78 recycling fee): Residents with standard monthly service would be billed $63.87 every 3 months instead of $62.19, showing an increase of $1.68 every 3 months or $6.72 annually. Likewise, multi- family refuse rates will be adjusted by 2.84 %. For example, a multi - family property with 3 cubic yard bin service that is picked up once a once a week will have a rate increase of $3.46, changing their standard monthly service rate from $121.98 to $125.44. Page 1 of 4 Mayor and Council April 5, 2011 BACKGROUND In February 2009, the City Council awarded a seven (7) year contract with Waste Management Inc. for exclusive collection of residential refuse and recycling collection services including establishing the residential refuse rate schedule for Fiscal Years 2009/2010 and 2010/2011. Waste Management's comprehensive recycling programs have assisted the City in achieving a 79% diversion rate exceeding the 50% diversion rate mandated by AB 939. Along with standard residential refuse collection, WM also provides a full range of residential recycling activities and special services which includes the following: • Co- mingled curbside recycling • Greenwaste curbside recycling • Free Backyard Service for Residents with a Physical Hardship • Discounted Rates for qualifying Senior Citizens for single - family residential units per year • Four (4) Bulky item /E -waste Pick -ups for single family residential units per year • Two (2) Bulky Item /E -waste pick -ups for multi - family units per year • Holiday Tree Recycling • Waste -to- Energy Program (multi - family units only) • Residential Recycling Education • Mail -it -Back Recycling for cell phones, rechargeable batteries, and sharps waste DISCUSSION On February 14, 2011, Waste Management's request for the service rate adjustment was received by the City Manager's Office. The Agreement contains specific provisions that entitle WM to receive annual rate adjustments that are subject to staff review and the City Council's approval. The rate increase is based on a rate adjustment formula consisting of three (3) weighted indices: • Consumer Price Index (CPI) (65 %) • Disposal /Green Waste Facility Index (30 %) • Producer Price Index (PPI) for fuel (5 %) The CPI change was measured from the annual average for calendar year 2009 and 2010 specific to the Los Angeles- Riverside - Orange County statistical area. The Disposal /Green Waste Facility index is adjusted based on per ton tipping fee charged at the Los Angeles County Sanitation District disposal and composting facilities. Additionally, the Disposal /Green Waste index is further broken down to the percentage of trash and greenwaste the City disposed of at local landfills. Finally, 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. Page 2 of 4 Mayor and Council April 5, 2011 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 Adjustment due Weighted to change in Relative Rate Rate % % of % of indices /change Weight Adjustment Component CPI Fleet Tonnage in disposal fees of Rate Percentage Service - CPI 75% 1.20% 65% 0.58% Fuel - Diesel 35% 21.54% 0.38% Fuel - Alternative 65% 9.47% 5% 0.31% - Disposal /Green 65% 0.00% 0.00% Waste - MSW 30% Disposal /Green 35 15.04% 1.57% Waste - GW Total 100% 2.84% Staff has worked with Waste Management's 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. Based on the contractor's service record and continuing satisfactory performance, staff concurs with WM's request for a rate adjustment. Additionally, a rate survey conducted in February 2011 indicated that the City of Arcadia's refuse rates are among the lowest in San Gabriel Valley, even with the proposed rate increase (Exhibit A). CONCLUSION In accordance with Proposition 218, the City must engage in the proper balloting process when increasing refuse rates. Therefore, staff is recommending that the City Council authorize the Public Works Services Department to follow Proposition 218 Balloting Procedures for a 2.84% increase for single - family and multi - family refuse rates, conduct a public hearing at the June 7, 2011 City Council meeting and to prepare resolutions authorizing the proposed refuse rate increase per Terms of the Agreement with Waste Management for fiscal years 2011/12, 2012/13, 2013/14, 2014/15 and 2015/16. The percentage of rate increase, 2.84% will be applied uniformly to all rates including multi- family collection rates (Exhibit B). Page 3 of 4 Mayor and Council April 5, 2011 ENVIRONMENTAL IMPACT 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. RECOMMENDATION Direct the Public Works Services Department to follow Proposition 218 Balloting Procedures for refuse rates and conduct a Public Hearing at the June 7, 2011 City Council meeting with a prepared Resolution authorizing the proposed refuse rate increase for fiscal years 2011/12, 2012/13, 2013/14, 2014/15 and 2015/16. Approved by: Donald Penman, City Manager Attachments TT:VH:jb Page 4of4 r Exhibit "A" Solid Waste Survey — February 2011 ARcADIA Single Family Residential Rates (Current) City Rank Total Monthly Rate South Pasadena $38.93 Pasadena $36.43 Sierra Madre $31.49 El Monte $30.11 San Gabriel $28.60 Temple City $27.74 Covina $26.52 West Covina $26.35 Diamond Bar $24.02 Baldwin Park $23.43 Monterey Park $23.09 Azusa $22.61 Arcadia (proposed rate) $21.29 Alhambra $20.18 Arcadia (current rate) $20.73 Monrovia $18.79 Duarte $18.20 Exhibit "B" City of Arcadia Residential Refuse and Recycling Collection Service Single Family Rate Schedule Effective July 1, 2011 the monthly residential refuse and recycling service rates are: STANDARD SERVICE RATES SENIOR CITIZEN SERVICE RATES 2011 # Green Total 2011 # Green Total Service Base GW Waste Recycling AB 939 Monthly Service Base GW Waste Recycling AB 939 Monthly Cate. o Rate carts Rate Cha , e Fee Fee Cat - . 0 Rate carts Rate Cha !e Fee Rate Single Family $14.68 1 $2.22 $0.78 $0.30 $17.98 Single Family $13.25 1 $2.02 $0.78 $0.30 $16.34 Dwelling, (1) $14.68 2 $3.19 $0.78 $0.30 $18.94 Dwelling, (1) $13.25 2 $2.86 $0.78 $0.30 $17.18 60 Gallon Can $14.68 3 $4.30 $0.78 $0.30 $20.05 60 Gallon Can $13.25 3 $3.88 $0.78 $0.30 $18.20 $14.68 4 $5.33 $0.78 $0.30 $21.08 $13.25 4 $4.80 $0.78 $0.30 $19.13 $14.68 5 $6.53 $0.78 $0.30 $22.29 $13.25 5 $5.89 $0.78 $0.30 $20.22 $0.78 00.30 $0.78 $0.30 $1.08 Single Family $17.99 1 $2.22 $0.78 00.30 $21.29 Single Family $12.59 1 $2.02 $0.78 $0.30 $15.68 Dwelling, (1) $17.99 2 $3.19 $0.78 $0.30 $22.25 Dwelling, (1) $12.59 2 $2.86 $0.78 $0.30 $16.53 96 Gallon Can $17.99 3 $4.30 $0.78 $0.30 $23.37 96 Gallon Can $12.59 3 $3.88 $0.78 $0.30 $17.54 $17.99 4 $5.33 $0.78 $0.30 $24.39 $12.59 4 $4.80 $0.78 $0.30 $18.47 $17.99 5 $6.53 $0.78 $0.30 $25.60 $12.59 5 $5.89 $0.78 $0.30 $19.56 Monthly Per >5 $1.08 $1.08 Monthly Per >5 $0.99 $0.99 Additional Can Additional Can ( Greenwaste) (Greenwaste) Single Family 64g $11.27 $0.00 $0.00 $11.27 Single Family 64g $10.14 $0.00 $0.00 $10.14 Dwelling, (1) 96g $11.46 $0.00 $0.00 $11.46 Dwelling, (1) 96g $10.30 $0.00 $0.00 $10.30 Time Per Can Time Per Can Unscheduled Pickup Unscheduled Pickup Monthly Per 64g $7.93 $0.00 $0.00 $7.93 Monthly Per 84g $7.14 $0.00 $0.00 $7.14 Additional Can 96g $9.77 $0.00 $0.00 $9.77 Additional Can 96g $8.82 $0.00 $0.00 $8.82 B/Y Automated $55.13 $0.78 $0.30 $56.21 BN Automated $50.31 $0.78 $0.30 $51.39 Collection Ser. Collection Ser. B/Y Collection $17.36 $0.00 $0.00 $17.36 BN Collection $15.63 $0.00 $0.00 $15.63 1 Time P/U 1 Time P/U Per Can Per Can BA' Additional $14.65 $0.00 $0.00 $14.65 BN Additional $13.24 $0.00 $0.00 $13.24 Container Container 'Bulky Item P/U $36.49 $0.00 $0.00 $36.49 *Bulky Item P/U $32.82 $0.00 $0.00 $32.82 Sharps Program $31.40 Size - One Quart Additional sizes available $31.40 Sharps Program $31.40 Size - One Quart Additional sizes available $31.40 $41.07 Size - One Quart Additional sizes available $41.07 $41.07 Size - One Quart Additional sizes available $41.07 Temporary 3 - Yard Bin Service: Temporary Roll -Off Bin Sertvice: Three Day Rental $123.43 $123.43 Rates are negotiated under the commercial non - exclusive contract Seven Day Rental $147.99 $147.99 Additional Rate Per Day $6.97 $6.97 • This pridng applies only to residents that exceed the 4 free Bulky Item collections Exhibit "B" City of Arcadia Refuse Collection Service Multi- family Base Rate Schedule 2011 - 2012 CPI 2.84% Number of Bins STAB RATE and size NUMBER OF PICK -UPS PER -WEEK 1 2 3 4 5 6 1 - 1.5 Yard $89.37 $178.75 $268.11 $385.26 $446.85 $536.21 2 - 1.5 yard $162.49 $324.98 $487.45 $649.91 $812.43 $974.90 3 - 1.5 yard $243.73 $487.46 $731.19 $974.92 $1,218.64 $1,462.41 4 - 1.5 yard $325.01 $649.98 $974.94 $1,299.93 $1,624.93 $1,949.90 5 - 1.5 yard $406.22 $812.47 $1,218.68 $1,624.94 $2,031.17 $2,437.41 1 - 3 yard $106.48 $197.70 $319.40 $425.87 $532.37 $638.82 2 - 3 yard $190.11 $395.45 $570.30 $760.38 $950.49 $1,140.57 3 - 3 yard $273.80 $593.15 $821.31 $1,095.07 $1,368.85 $1,642.63 4 - 3 yard $357.42 $790.85 $1,072.23 $1,429.64 $1,787.05 $2,014.31 5 - 3 yard $441.10 $988.55 $1,323.23 $1,764.27 $2,205.36 $2,646.39 1 -6yard $199.53 $399.09 $598.59 $798.13 $997.66 $1,197.21 Number of Bins DISMOUNT RATE and Size NUMBER OF PICK -UPS PER WEEK 1 2 3 4 5 6 1 - 1.5 yard $100.76 $201.54 $302.29 $403.04 $503.80 $604.57 2 - 1.5 yard $183.21 $366.41 $549.63 $732.84 $916.02 $1,099.23 3 - 1.5 yard $274.80 $549.58 $824.38 $1,099.16 $1,373.96 $1,648.71 4- 1.5 yard $366.39 $732.81 $1,099.17 $1,465.55 $1,780.55 $2,198.36 5 - 1.5 yard $458.01 $915.98 $1,373.98 $1,831.98 $2,289.98 $2,747.98 1 - 3 yard $120.09 $218.65 $347.90 $463.75 $579.82 $695.75 2 - 3 yard $211.04 $437.22 $633.07 $844.12 $1,055.13 $1,266.17 3 - 3 yard $306.07 $655.43 $918.22 $1,224.29 $1,530.37 $1,836.44 4 - 3 yard $401.11 $874.51 $1,203.36 $1,604.48 $2,005.63 $2,406.70 5 - 3 yard $496.21 $1,093.16 $1,488.55 $1,984.75 $2,480.94 $2,977.12 1 - 6 yard $218.43 $436.90 $655.29 $873.71 $1,092.12 $1,310.56 Number of Bins STAGE RATE and Size NUMBER OF PICK -UPS PER WEEK 1 2 3 4 5 6 1 - 1.5 yard $110.24 $220.52 $330.75 $441.01 $551.25 $661.50 2 - 1.5 yard $200.50 $400.97 $601.46 $801.93 $1,002.40 $1,202.90 3 - 1.5 yard $300.75 $601.47 $902.19 $1,202.92 $1,503.65 $1,804.37 4 - 1.5 yard $400.98 $801.95 $1,202.94 $1,603.89 $2,004.91 $2,405.87 5 - 1.5 yard $501.22 $1,002.41 $1,503.62 $2,004.86 $2,506.07 $3,007.29 1 - 3 yard $125.44 $237.63 $376.43 $501.89 $627.37 $752.83 2 - 3 yard $231.63 $475.30 $695.75 $927.68 $1,159.62 $1,391.55 3 - 3 yard $338.41 $712.91 $1,015.20 $1,353.59 $1,691.98 $2,030.36 4 - 3 yard $444.88 $950.56 $1,334.64 $1,779.53 $2,224.41 $2,669.30 5 - 3 yard $551.31 $1,188.19 $1,653.96 $2,205.26 $2,756.61 $3,307.92 1 -6yard $237.13 $474.32 $711.38 $948.50 $1,185.61 $1,422.76 *Please add the following fees to the rates listed above: teso # 6269): Recycling Fee (Reso # 6269): 2 -6 units = $1.00 per unit 7 or more units = $1.50 per unit 1.30 per unit AB 939 Fee = $0.30 per unit