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Home My WebLink About1991-05-14 - AGENDA REPORTS - SOLID WASTE DISPOSAL FEES (2)CONSENT CALENDAR DATE: May 14, 1991 AGENDA REPORT City Manager Approval Item to be presented by. John E. Medina, Director SUBJECT: NEW COUNTY TAT ON SOLID WASTE DISPOSAL FEES Resolution Nol 91-83 DEPARTMENT: Public Works BACKGROUND On January 22, 1991 the Los Angeles Board of Supervisors adopted County Ordinance Number 91-0017 which imposed a 10% tax (10% per ton), on tipping fees collected at 'landfills in the unincorporated County area. This action has a direct impact on this City's refuse rates since. our haulers use the Chiquita Canyon Landfill. The cost of dumping trash at landfills represents about 25% of City residents' monthly refuse bills. Historically, increases in landfill dumping fees such as this have been passed along to the customers in.the form of a rate increase. No notification had been provided by the County prior to passage of the new tax. Staff has investigated and been unsuccessful in determining alternatives which would prevent passing of the increase to the residents. This County tax will increase residential refuse rates by 96k per home. Rates will be increased from $16.85 to $17.81 starting June 1, 1991 (see Attachment I, County Sanitation District notification letter). The Refuse/Recycling Franchise Agreement allows for this action by thehaulers because it is a direct increase of tipping fees under 25 percent. Previous to the City incorporating and the franchise, the haulers traditionally raised their prices in January for cost of living and tipping increases at the same time. However, if the tipping fee increase was significant and could not be borne by the haulers until January, the haulers would institute a mid -year increase. Such was the case in mid 1988, when a significant increase in tipping fees per ton lead directly to a $2.00 rate increase for Blue Barrel customers (see attachment II, seven-year history rate).- The County's tax represents 'a combined $294,000 annual increase to the haulers. The County ordinance represents a 5.4% increase over the present residential service rate for the City (see Attachment III). Current rates for single family residential service totals $16.85. The 10% County tax will increase this rate to $17.81 as of June 1, 1991. Such an increase will effect all single-family and multi -family residential service levels alike. .It should be noted that commercial rates which are not included in our franchise will also be increased because of the County tax. Adopted: Agendaltem: Agenda - New County Tax - Refuse' May 14, 1991 This County tax has no connection to the City's recently approved franchise with Atlas, Blue 'Barrel or Santa Clarita disposal companies. The County has indicated that revenues from this tax may be used to help fund County Mental Health Services. The -disposal companies last raised their rates independently in the following order: Atlas, May 1991; Blue Barrel, January 1990; and Santa Clarita, May 1991 (see Attachment IV for more information). RECOMMENDATION Adopt Resolution 91-83 replacing Resolution 91-28 Schedule of Refuse Rates. Sanitation Districts Letter Blue Barrel Rate History Components of a Monthly Refuse Bill Haulers Last Increase Resolution No. 91-83 DEL:155 RESOLUTION NO. 91-83 A RESOLUTION OF THE CITY OF SANTA.CLARITA, CALIFORNIA ESTABLISHING A SERVICE FEE SCHEDULE FOR THE COLLECTION, RECYCLINGAND DISPOSAL OF SOLID WASTES, GREEN WASTES AND RECYCLABLES WHEREAS, the City of Santa Clarita has adopted Resolution No. 91-27 relating to the granting of an exclusive franchise for the collection, . recycling and disposal of solid wastes, green wastes and recyclables within the City limits; and WHEREAS, the City Council has entered into an agreement"with Santa Clarita Disposal Company, Blue Barrel Disposal Company and Atlas Disposal Company to collect, pick up and remove, recycle and dispose of solid wastes, green wastes and recyclables from all single family residences and all multi -family residences in the City of Santa C1Arita, and WHEREAS, from time to time the landfill tipping fees fluctuate and the franchise grantees should be compensated for those increase over which they have no control; and WHEREAS, on January 22, 1991, the County of Los Angeles Board of Supervisors adopted County Ordinance 91-0017 which imposed a ten (10%) percent tax on tipping fees collected at landfills which operate within the unincorporated County area, and WHEREAS, the City's franchised residential haulers currently utilize the Chiquita Landfill, such action will impose a direct impact upon all City residents WHEREAS, Resolution No. 91-83, hereinafter superseeding Resolution No. 91-28, authorized to impose fees necessary for collection services of solid wastes, green wastes and recyclables to all Santa Clarita residents; and NOW, THEREFORE, the City Council of Santa Clarita does hereby resolve, determine, and order as follows: Section 1. The.attached Exhibit A represents the revised service fee schedule for the collection, recycling and disposal of solid wastes, green wastes and recyclables, as of June 1, 1991. Section 2. Landfill tipping fees that are increased less than 25 percent may increase the service rate to each customer and shall be apportioned on a pro -rata basis. The increased service rate shall be implemented 15 days after notifying the City Manager and pursuant to Section 21D, Residential Solid Waste Franchise Agreement. Section 3. The effective date of this Resolution shall take effect upon the effective date of the Franchise Agreement for the Collection, Transportation, Recycling and Disposal of Solid Waste, Green Wastes and Recyclables. PASSED, APPROVE AND ADOPTED this day of , 1991. MAYOR RESOLUTION NO. 91-83 ATTEST: CITY CLERK I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof; held on the day of- 1991 by the following vote of Council: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS DEL:82 - 2 - CITY CLERK EXHIBIT "A" SCHEDULE OF RATES I. Single -Family Residential A. Levels of Service (Weekly) (1) One 90 -gallon cart and a maximum 15.00 (2) of two 32 -gallon baggies, or two 15.00 (3) 32 -gallon barrels, or one of each; 1-1/2 yard bin, five times per week 205.00 a maximum of two bundles of brush, 50.00 (4) and an unlmited number of containers 15.00 (5) of recyclables $17.81 per month (2) Level (1) plus one additional . 10.00 (7) 90 -gallon cart 26.72 per month (3) Level (1) plus two additional 15.00 90 -gallon carts 35.26 per month (4) Level (1) plus three additional 90 -gallon -carts 44.17 per month B. Fees (1) Refundable Cart Deposit 15.00 (2) Redelivery Fee 15.00 (3) Replacement or Additional Carts 1-1/2 yard bin, five times per week 205.00 Grantee's cost, not to exceed 50.00 (4) Replacement Cart Delivery Fee 15.00 (5) 34 -Gallon Recycling Cart Replacement 10.00 (6) Additional 34 -Gallon Recycling Cart 10.00 (7) Recycling Cart Delivery Free 15.00 (8) Restart Fee 15.00 Ii. Multi -Family Residential 1-1/2 yard bin, once per week 58.00 1-1/2 yard bin, twice per week 95.00 1-1/2 yard bin, three times per week 131.00 1-1/2 yard bin, four times per week 168.00 1-1/2 yard bin, five times per week 205.00 1-1/2 yard bin, six times per week 237.00 1-3 yard bin, once per week 68.00 1-3 yard bin, twice per week 105.00 1-3 yard bin, three times per week 142.00 1-3 yard bin, four times per week 179.00 1-3 yard bin, five times per week 216.00 1-3 yard bin, six times per week 248.00 Baggie Service Not to exceed 75% of base rate III. City Special Pickups Pickups 1-25 (per Grantee) No Charge Each additional pickup $50.00 D-1 • WPEIF WPIFR RECIPMPIION SOLI[I WPSTE M0.NWEMENT ATTAGHN,ENT 1 ; g FEB 2 2 1991 COUNTY SANITATION Cff'aT'RtCTS OF LOS ANGELES COUNTY 1955 Workman Mill Road, Whittier, CA 90601-4998 Mailing Address: P.O. Box 4998, Whittier, CA 90607-4998 Telephone: (213) 699-7411, U213) 685-5217, Fax: (213) 695-6139 1RcCEIVED FEB 2 5 1991 PUBLIC WORKS DEPARTMENT CITY OF SANTA CLARITA Dear City Manager/City Administrator: CHARLES W. CARRY Chief Engineer and General Manager February 13, 1991 File No. 31R-10.10 Adjusted Rates for Solid Waste Disposal A recent County of Los Angeles Ordinance (Number 91-0017, adopted January 22, 1991) imposes a 10010 tax on fees collected at solid waste disposal facilities which operate within the Unincorporated County area. Effective March 13, 1991, the rates will be adjusted accordingly, and this letter is being provided as notification of the new rate schedule. Enclosed is a summary of the adjusted rate schedule. The base rate will be increased by $1.20 per ton at the Puente Hills and Spadra Landfills, and by $1.85 per ton at the Calabasas Landfill. The basic rate at the South Gate Transfer Station, which utilizes the Puente Hills Landfill for ultimate disposal, will also be increased by $1.20 per ton. No change in rates will occur at the Scholl Canyon Landfill. If you have any further questions regarding the new rates or desire any assistance in determining the impacts of the proposed rate increases on your city, please contact me. Very truly yours, Charles W. Carry Stephen R. Maguin, Head Solid Waste Management Department SRM:ksd Enclosure ATTACHMENT ?I BLUE BARREL RATE HISTORY 1985 $ 11.25 January 1985 $ 11.75 July 1985 ------------------------- Tipping fee by ton from truck 1986 $ 11.85 1987 $ 13.85 City Incorporates 1988 $ 13.85 1989 $ 15.85 1990 $ 16.85 1991 $ 16.85 ------------------------- Refuse Franchise ATTACHMENT III ,COMPONENTS OF MONTHLY REFUSE FEE* FUEL 3.2R it DUMP FEES 20.99 NEW COUNTY TAX 5.4% INSURANCE 3.29 Labor Fuel Dump Fees County Tax Insurance Truck Expenses Equipment Gen. O.H. Monthly Rate BASE RATE $17.81 33.19 3.29 20,99 5,49 3.2% 25.7% 0.69 7.99 100.0% LABOR 33.19 GEN O.H. 7.9% V - EQUIPMENT 0.694 K EXPENSE 25.79 $ 5.91 0.57 3.64 0,96 0.64 4.57 0.12 1.40 $ 17.81 *Actual percentage differs somewhat from company to comps y, These percentages are based on financial statements provided by Blue Barrel Disposal], ATTACHMENT IV HAULER'S LAST INCREASE Company Old Rate Date Increase Current Rate Number Homes Atlas Transport $ 16.50* May 1, 1991 $ 16.85 6,300 Blue Barrel 15.85 January 1990 16.85 12,500 Santa Clarita 16.60 May 1, 1991 16.85 7,600 Disposal New Customers * 1,000 Atlas customers paid a rate of $12.50 per month for a 50 gallon metal drum.