HomeMy WebLinkAbout1994-12-13 - AGENDA REPORTS - SOLID WASTE FRANCHISE AMEND (2)PUBLIC HEARING
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND
AGENDA REPORT
City Manager Approval
Item to be presented by
Jeff Kolin. Deputy City Manager
1 d
December 13, 1994
SOLID WASTE FRANCHISE AMENDMENT
Resolution No. 94-130
Public Works
The residential refuse franchise agreement provides for rate modifications based on changes
in landfill tipping fees and the Producer Price Index (PPI). Increased landfill tipping fees of
up to 25 % may be passed on to customers through rate increases following a written request
to the Public Works Director; increases of more than 25 % require approval of the City
Council. The terms of the franchise agreement require that PPI adjustments occur in January
of each year and also require City Council resolution. At the City Council Study Session
held on November 1, 1994, staff reported to Council that adjustments to the existing refuse
rates effective January 1, 1995 would be presented at the Council meeting in November or
December.
REFUSE RATE ADJUSTMENTS
Single Family
Tipping fees at Laidlaw/Chiquita Canyon landfill will increase by $1.38 per ton on
January 1, 1995. This translates to a 1.29% increase in monthly rates which equals
$0.25 per household per month. In addition, the changes in the PPI reflect a 0.74%
increase which represents an increase of $0.14 per household per month. These
incremental changes distributed over the total waste disposal tonnages and operational
expenses for single family households represent an increase of 2.03 % or $.39 per
household per month.. Attachment A includes the rate adjustment summary.
Multi -Family
Multi -family accounts will be affected by an increase of 1.51 % in monthly rates due
to landfill disposal fees and a 0.7% increase for the PPI adjustment, therefore the
monthly rates are to be adjusted by an average 2.21 % (see attachment A).
Adoptee,: IJ -1,3-9q Agenda Item:
Collection of Refuse Fees
December 13, 1994
Page 2
These adjustments are effective January 1, 1995. The next annual rate adjustment will occur
in January of 1996. However, increased landfill tipping costs assessed the haulers can be
passed on to customers in the interim period.
RECOMMENDATION
Adopt Resolution No. 94-130 which amends the schedule of rates in the franchise agreement
to reflect a 2.03 % increase in rates for single family households and 2.21 % for multi -family
bin accounts.
ATTACHMENT
Resolution No, 94-130
Rate Adjustment Summary
CITY OF SANTA CLARITA
NOTICE OF PUBLIC HEARING
ESTABLISHING A SERVICE FEE SCHEDULE FOR THE COLLECTION,
RECYCLING AND DISPOSAL OF SOLID WASTES, GREEN WASTES BASED
ON CHANGES IN LANDFILL TIPPING FEES AND THE PRODUCER PRICE
INDEX (PPI) IN THE CITY OF SANTA CLARITA, CALIFORNIA
PUBLIC NOTICE IS HEREBY GIVEN:
Establishing a service fee schedule for the collection, recycling and disposal of solid
wastes, green wastes and recyclables based on changes in landfill tipping fees and the
Producer Price Index (PPI) in the City of Santa Clarita, California. The residential
refuse franchise agreement provides for rate modifications. Rate modifications are
built on direct pass through for landfill tipping fees and increases in the PPI. The
terms of the franchise agreement require that PPI adjustments occur in January of
each year and also require City Council resolution.
The hearing will be held by the City Council in the City Hall Council Chambers,
23920 Valencia Boulevard, 1st Floor, Santa Clarita, the 13th day of December, 1994,
at or after 6:30 p.m.
Proponents, opponents, and any interested persons may appear and be heard on this
matter at that time. Further information may be obtained by contacting the City
Clerk's office, Santa Clarita City Hall, 23920 Valencia Boulevard, 3rd Floor, Santa
Clarita, California.
If you wish to challenge the action taken on this matter in court, you maybe limited
to raising only those, issues you or someone else raised at the public hearing described
in this notice, or in written correspondence delivered to the City of Santa Clarita at
or prior to the public hearing.
Dated: November 16, 1994
Donna M. Grindey, CMC
City Clerk
Publish Date: November 21, 1994
coues.phppi.gmd
Public Hearing Procedure
1. Mayor opens hearing
•States purpose of hearing
2. City Clerk reports on hearing notice
3. Staff report
4. Proponent Argument (30 minutes)
5. Opponent Argument (30 minutes)
6. Five-minute rebuttal (Proponent)
•Proponent
7. Mayor closes public testimony
8. Discussion by Council
9. Council decision
10. Mayor announces decision
RESOLUTION NO. 94-130
A RESOLUTION OF THE CITY OF SANTA CLARITA, CALIFORNIA
ESTABLISHING A SERVICE FEE SCHEDULE FOR THE
COLLECTION, RECYCLING AND 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 Refuse Removal 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 Clarita, and
WHEREAS, from time to time the landfill tipping fees fluctuate and the franchise grantees should
be compensated for those increases over which they have no control; and
WHEREAS, On October 17, 1994 results of the City's rate adjustment analysis confirmed
increases in landfill tipping fees which reflect an increase in rates of one and twenty-nine hundredths percent
(1.29%) to single family households accounts and one and fifty-one hundredths percent (1.51 %) to
multi -family accounts, and
WHEREAS, the City's franchised residential haulers currently utilize the Chiquita
Landfill, such action will impose a direct impact upon all City residents, and
WHEREAS, Section 21B of the City's residential refuse and recycling franchise
agreement provides for annual modification and adjustment of rates due to changes in the Producer
Price Index, and
WHEREAS, increases due to incremental changes in the Producer Price Index reflect an
increase of seventy-four hundredths percent (.74%) to single family households and seven tenths
percent (0.7%) to multifamily bin accounts, and
WHEREAS, Resolution No. 94-130, hereinafter superseding Resolution No. 94-4,
authorized to impose fees necessary for collection services of solid wastes, green wastes and
recyclables to all Santa Clarita residents.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Santa
Clarita, as Follows:
Section 1, The attached Exhibit A-95 represents the revised service fee schedule
for the collection, recycling and disposal of solid wastes, green wastes and recyclables, as of
January 1, 1995.
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 30 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 immediately upon
adoptions of Resolution No. 94-130 for the collection, transportation, recycling and disposal of solid
waste, green wastes and recyclables.
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Resolution Not. 94 - 130
Page 2
PASSED, APPROVED AND ADOPTED THIS day of 1994.
MAYOR
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF SANTA CLARITA )
I, Donna M. Grindey, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing
Resolution Number 94-130 was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 1994, with the
following roll call vote
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
CITY CLERK
F—XHIB1T A-95
SCHEDULE OF RATES
1.Single-Family Residential
A. Levels of Service (Weekly)
(1) One 90 -gallon cart and a maximum of two 32 -gallon baggies, $19.72 per month
or two 32 -gallon barrels, or one of each; a maximum of two
bundles of brush, and an unlimited number of containers of
recyclables.
(2) Level (1) plus one additional 90 -gallon cart $29,67 per month
(3) Level (1) plus two additional 90 -gallon carts $39.05 per month
(4) Level (1) plus three additional 90 -gallon carts $48.91 per month
B. Baggie Service: Not to exceed 75 % of base rate
C. Fees
(1)
Refundable Cart Deposit
$15.00
(2)
Redelivery Fee
$15.00
(3)
Replacement of Additional Carts
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 Fee
$15.00
(8)
Restart Fee
$15.00
II. Residential Bin Rates
1-1/2 yard bin, once per week $64.53
1-1/2 yard bin, twice per week $105.69
1-1/2 yard bin, three times per week $145.73
1-1/2 yard bin, four times per week $186.89
1-1/2 yard bin, five times per week $228.05
1-1/2 yard bin, six times per week $263.65
1-3 yard bin, once per week $ 75.65
1-3 yard bin, twice per week $116.81
1-3 yard bin, three times per week $157.97
1-3 yard bin, four times per week $199.13
1-3 yard bin, five times per week $240.30
1-3 yard bin, six times per week $275.89
Ill. City Special Pickups
Pickups 1-25 (per Grantee) No Charge
Each additional pickup $52.18
EXHIBIT A-95
SCHEDULE OF RATES
1.Single-Family Residential
KI
ni
A. Levels of Service (Weekly)
(1) One 90 -gallon cart and a maximum of two 32 -gallon baggies, $19.72 per month
or two 32 -gallon barrels, or one of each; a maximum of two
bundles of brush, and an unlimited number of containers of
recyclables.
(2) Level (1) plus one additional 90 -gallon cart $29.59 per month
(3) Level (1) plus two additional 90 -gallon carts $39.05 per month
(4) Level (1) plus three additional 90 -gallon carts $48.91 per month
B. Baggie Service: Not to exceed 75% of base rate
C Fees
(1)
Refundable Cart Deposit
$15.00
(2)
Redelivery Fee
$15.00
(3)
Replacement of Additional Carts
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 Fee
$15.00
(8)
Restart Fee
$15.00
Residential Bin Rates
1-1/2 yard bin, once per week $64.53
1-1/2 yard bin, twice per week $105.69
1-1/2 yard bin, three times per week $145.73
1-1/2 yard bin, four times per week $186.89
1-1/2 yard bin, five times per week $228.05
1-1/2 yard bin, six times per week $263.65
1-3 yard bin, once per week $ 75.65
1-3 yard bin, twice per week $116.81
1-3 yard bin, three times per week $157.97
1-3 yard bin, four times per week $199.13
1-3 yard bin, five times per week $240.30
1-3 yard bin, six times per week $275.89
City Special Pickups
Pickups 1-25 (per Grantee) No Charge
Each additional pickup $52.18
version 2
City of Santa Clarita ATTACHMENT A
October 1.7, 1994 Page 1 of 2
RESIDENTIAL RATE ADJUSTMENT METHODOLOGY
s
� t SECTIONi x
TIEPING,EE CHANGES; 4
awz�ALU�
..
FOOTNOTE
...
1
2
3
4
Landfill Fee Per Ton, January 1, New Year (0 95)
Landfill Fee Per Ton, January 1, Current Year ( 1 94)
Change in Landfill Fee Per Ton (line 1- line 2)
Percent Change in Landfill Fee Per Ton (line 3 + line 2)
$ 31.48
(a)
(b)
$ 30.10
$
;LINE;
<
=' a, SECT ION__II,+ =
PRODUCER PRICE INDEX CHANGES,,.=
`7ALUE
A
FOOTNOTES
5
6
7
8
PPI Finished Goods, July, Current Year (from BLS) (+94)
PPI Finished Goods, July, Prior Year (from BLS) ( 1 93)
Change in PPI (line 5 - line 6)
Percent Change in PPI (line 7 + line 6)
126.00
(c)
(c)
125.30
-70
01 %
' �
'W
Me -No
„: ,' $INGLILY J2A�TE CH?,N
Y
VALUE
v
FO �i
FOO�TNN�O� ES
9
10
11
12
13
14
15
16
17
18
Disposal Component Index Weight
Percent Change in Landfill Fee Per Ton (line 4)
Rate Change for Disposal (line 9 x line 10)
Service Component Index Weight
Percent Change in PPI, Finished Goods (line 8)
Rate Change for Service (line 12 aline 13)
Total Change in Single Family Rate (line 11 + line 14)
Current Rate Per Month (from City Rate Resolution)
Rate Change Per Month (line 15 x line 16)
New Rate Per Month, January 1 (line 16 + line 17)
25.70 %
(d)
(e)
%
1 %
74.30 %
.01 %
-74 %
2.03 %
$ 19.33
$
$ 19.72
EGTIOl
MLILTI 4MILY,RATE CH 41�IGES
VALUE
r� ;
EOOTIVOTES
19
20
21
22
23
24
25
Disposal Component Index Weight
Percent Change in Landfill Fee Per Ton (line 4)
Rate Change for Disposal (line 19 x line 20)
Service Component Index Weight
Percent Change in PPI, Finished Goods (line 8)
Rate Change for Service (line 22 x line 23)
Total Change inMulti-Family Rates (line 21 + line 24)
30.10
(g)
(h)
.05 %
1.51 %
%
01 %
2.21 %
Line 1 = Per Rod Walter, 10/17/94
.� Hilton Farnkopf & Hobson
Lines 5, 6 = Per Bureau of Labor Statistics, 10/13/94 is
City of Santa Clarita ATTACHMENT A
October 11,
1994 Page 2 of 2
RESIDENTIAL RATE ADJUSTMENT METHODOLOGY
Y.�Y
s�*�xr
LINE''
+t'""r .- SEC,�TION,,V TystS�,v;�,,����'
REVISED SINGLE FAMILVNDEX 4j�EIGHTS+FOR
y risrt s of
NEXT YEAR S RATE AD USTMENT
, J
;CALCULATION'S
�-•,s•-,�•y,:�r}
VALUE �g
«,
t,
FOOTNOTE
26
Disposal Component Index Weight (line 9)
25.70 %
27
Rate Change for Disposal (line 11)
%,
28
Adjusted Disposal Index (line 26 + line 27)
(i)
26.99 %
29
Service Component Index Weight (line 12)
74.30 %
30
31
Rate Change for Service (line 14)
Adjusted Service Index (line 29 + line 30)
(i)
74 %
%
32
Total Adjusted Disposal & Service Index (line 28 + line 31)
(i)
102.03 %
33
34
Revised Disposal Index Weight (line 28 + line 32)%
Revised Service Index Weight (line 31 + line 32)
(j)
(j)
73.55 %
35
Total Revised Disposal & Service Index (line 33 + line 34)
(k)
%
"ECTION
`LINE ,
VI
D L3I
aREVI$ETIFAMILY INDE IG - FOR"�`�
�TTEXT EARIS RATE A DJUSTME i
CAI:CULATIOIV
r�
�� ��'
FOOTNOTES
36
37
Disposal Component Index Weight (line 19)
Rate Change for Disposal (line 21)
30.1 %
1.51 %
38
Adjusted Disposal Index (line 36 + line 37)
(i)
%
39
Service Component Index Weight (line 22)
69.90-7/-
40
41
Rate Change for Service (line 24)
Adjusted Service Index (line 39 + line 40)
(i)
.70%
70.60 %
42
Total Adjusted Disposal & Service Index (line 38 + line 41)
(i)
%
43
Revised Disposal Index Weight (line 38 + line 42)
(j)
30.93 %
44
45
Revised Service Index Weight (line 41 + line 42)
Total Revised Disposal & Service Index (line 43 + line 44)
(j)
(k)
69.07 %
100.00%
(a) Verify the landfill fee per ton expected on January 1 by having the landfill send a letter
stating the expected fee to be paid by each of the franchise haulers.
(b) From Line 1 of prior year rate adjustment calculation..
(c) BLS = Bureau of Labor Statistics in Washington D.C. Publications are available at university
libraries. (213)252-7521
(d) From Line 33 of prior year rate adjustment calculation..
(e) From Line 34 of prior year rate adjustment calculation.
(f) From Line 43 or prior year rate adjustment calculation.
(g) From Line 44 of prior year rate adjustment calculation.
(h) This percentage is applied to all current multi -family rates to calculate the rate change.
(i) This is an interim step used later to calculate the revised weights.
1(j) Tobe used for next year's rate adjustment calculation.
(k) This should equal 100%.
Hilton Farnkopf & Hobson�
e