Loading...
HomeMy WebLinkAbout1995-11-14 - AGENDA REPORTS - SOLID WASTE FRANCHISE AMEND (2)AGENDA REPORT PUBLIC HEARING DATE: November 14, 1995 CityMana3 Item to be Lynn M. Harris SUBJECT; SOLID WASTE FRANCHISE AMENDMENT - ADJUSTMENT OF REFUSE RATES RESOLUTION NO. 95-141 DEPARTMENT: Public Works BACKGROUND The residential refuse franchise agreements provide for rate modifications based on annual changes in landfill tipping fees and Producer Price Index (PPI). The PPI and tipping fee adjustment for 1996 is $.50 per single family residence and 2.64% for multi -family units. The terms of the agreements require that these adjustments take effect on the first day of January of each year. By letter dated September 27, 1995, Laidlaw Waste Systems notified the franchised waste haulers that effective October 1, 1995 the L.A. County Business Tax had been increased from 10% of gross revenues to 15% and that the County had levied a new Business License Tax of $.25 per ton on disposal facilities. Accordingly, the haulers requested the City to pass through a monthly increase of $.33 per single family residence and an increase of 1.96% to multi -family units. Section 21C, Extraordinary Costs, of the franchise agreement allows for these adjustments. Attachment A contains letters from the haulers and notifications from Laidlaw Waste Systems. City Staff contacted Laidlaw Waste Systems and the County Tax Collector's Office to verify the new and increased taxes. Representatives from both offices stated that the taxes are being assessed as of October 1, 1995.. However, the County confirmed that written notices will not be sent to the landfill owners until legality of these tax assessments are resolved. Staff also conducted a phone survey of cities that have refuse franchises and pass through rate adjustments for landfill fee increases. Many of the cities were unaware of the landfill taxes, and those that were did not intend to approve rate adjustments since the increases may be affected by the recent rulings on Proposition 62. If rates are adjusted and the County taxes are subsequently nullified, a rebate or rollback of refuse rates will be necessary. The City Attorney can provide additional information pertinent to this issue. �Q.alc Continued To: L— Agenda Itern:4-- Due to the annual adjustments and the County Business Taxes, the total monthly rates per single family residence with standard service will increase a total of $.83. The new monthly single family residence rate will be $20.55. Multi -family residence rates will increase a total of 4.6%. The actual rate to multi -family accounts will vary based on bin size and frequency of service. The Residential Rate Adjustment Methodology is included as Attachment B. RECOMMENDATION Adopt Resolution 95-141, which reflects a new single family residence rate of $20.55 and a 4.6%a increase to multi -family residence rates. ATTACHMENTS Resolution No. 95-141 Requests for Adjustment Rate Adjustment Summary P:WDMEiPI ACENDAVtAnHE GN CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING TO CONSIDER SOLID WASTE FRANCHISE AMENDMENT ADJUSTMENT OF REFUSE RATES NOTICE IS HEREBY GIVEN: A Public hearing will be held before the City Council of the City of Santa Clarita to consider the adjustment of local refuse rates through amendment of the solid waste franchise agreements. The hearing will be held in the City Council Chambers, 23920 Valencia Blvd., 1 st floor, Santa Clarita, Ca., on November 14, 1995 at or after 6:30 p.m. Proponents, opponents and any interested persons may be heard on this matter at this time. Further information may be obtained by contacting Waste Management Analyst Bryan Boeskin in the Public Works Department, Waste Management Division (805) 294-2500. If you wish to challenge action taken on this matter in court, you may be 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: October 30, 1995 Donna M. Grindey, CMC City Clerk Publish Dates:. November 2, 1995 FAiOME W CAGENOA�BH .NOT 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 C: RESOLUTION NO. 95-141 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, pickup 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 1, 1995, Los Angeles County increased its Landfill Business License Tax and imposed a new Depositor Business License tax which directly impacts landfill tipping fees and the franchise agreement allows the franchisees compensation for those increases over which they have no control, 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, On November 1, 1995, results of the City's rate adjustment analysis confirmed total increases in landfill tipping fees, including local taxes, which reflect an increase in rates of two and eighty-six hundredths percent (2.861/o) to single family households accounts and three and thirty-four hundredths (3.34%) to multi -family accounts, 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 WFI MEAS, increases due to incremental changes in the Producer Price Index reflect an increase of one and thirty-fourth hundredths percent (1.34%) to single family households and one and twenty-six hundredeths percent (1.26%) to multifamily bin accounts, and WHEREAS, Resolution No. 95-141, hereinafter superseding Resolution No. 94-130, 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-96 represents the revised service fee schedule for the collection, recycling and disposal of solid wastes, green wastes and recyclables, effective January 1, 1996. 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 shall be immediately upon adoption of Resolution No. 95-141 for the collection, transportation, recycling and disposal of solid waste, green wastes and recyclables. SECTION 4: The City Clerk shall certify to the adoption of this resolution. ATTEST:. PASSED, APPROVED AND ADOPTED THIS day of 1995. CITY CLERK MAYOR 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 95-141 was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 1995, with the following roll call vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: C OUNCILMEMBERS CITY CLERK F:WONOMCCAGEN1WRATHHEARAGN EXIIIBIT A-96 SCHEDULE OF RATES I. Single Family Residential A. Levels of Service (Weekly) (1) One 90 -gallon cart and a maximum of two 32 -gallon baggies, 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 (3) Level (1) plus two additional 90 -gallon carts (4) Level (1) plus three additional 90 -gallon carts B. Baggie Service: Not to exceed 75% of base rate C. Fees (1) Refundable Cart Deposit (2) Redelivery Fee (3) Replacement of Additional Carts Grantee's cost, not to exceed (4) Replacement Cart Delivery Fee (5) 34 -gallon recycling Cart Replacement (6 Additional 34 -gallon Rec cling Cart (7) Recycling Cart Delivery cling (8) Restart Fee 11. Residential Bin Rates 1-1/2 yard bin, once per week 1-1/2 yard bin, twice per week 1-1/2 yard bin, three times per week 1-1/2 yard bin, four times per week 1-1/2 yard bin, five times per week 1-1/2 yard bin, six times per week 1-3 yard bin, once per week 1-3 yard bin, twice per week 1-3 yard bin, three tunes per week 1-3 yard bin, four times per week 1-3 yard bin, five times per week 1-3 yard bin, six times per week III. City Special Pickups of Grantee, 1-25 No Charge, Each Additional: EXHIBIT A-96 P: W G MCIPR'1CGGENDA�tATEf �AAAGN $20.55 per month $30.83 per month $40.69 per month $50.96 per month $15.00 $15.00 $50.00 $15.00 $10.00 $10.00 $15.00 $15.00 $ 67.50 $110.55 $152.43 $195.49 $238.54 $275.78 $ 79.13 $122.18 $165.24 $208.29 $251.35 $288.58 $54.58 Atlas Refuse Removal Co. P.O. Box 800478, Santa Clarita, CA 91380 (805)257-2119 October 31, 1995 FAX (818) 341-4352 Hazel Joanes City of Santa Clarita 25663 Avenue Stanford Santa Clarita, CA 91355 Dear Ms. Joanes: 11995 SOLID WASTE DIVISION In reference to our residential franchise agreement in Section 21-B., regarding annual modification and adjustments of rates. This is a reminder that it is time for the annual review and analysis of rates. We ask that the City Council consider costs related to residential refuse services (changes in the Producer Price Index, Los Angeles County Business Tax, Tax on Disposal Facilities) and make adjustments accordingly. Thank you for your aid in accomplishing this task in a timely manner. Sincerely, arles aspary President ATTACHMENT A-2 Printed on Recycled Paper OCT -31-95 TUE 16117 P.04 .-1�ODD'DO© LAIDLAW WASTE SYSTEMS September 27, 1995 SANTA CLARITA,DISPO5AL 17524 SIERRA HVN CANYON COUNTRY, CA 91351 Dear Valued Customer, The Los Angeles Conary Tax Collector has just informed me tbat the Los Angeles County. Board of Supervisors has adjuard the Los Angeles County Business -Tax and added a new tax entitled, "Business License Tax on Disposal Facilities." I have been told by the tax collector's office that the Los Angeles County Business Tax bas been increased from 10% of goys revenues to 150A of gross revenues. This increase will be effective October 1, 1995. in addition, the rax conector's.office informed me.that a new tax will be levied on Los Angeles County landfills and will also be effective October 1, 1995- The Business License Taxon Disposal Facilities will be S0 25 per ton. Please non that disposal pricing will reflect the changes mentionedabove ben' ig October 1, 1995. I do not have any additional information it this time. It is Laidlaw's oblimzation to you. as Laidlaw.`s customer, to provide -you with as much information as possible related to these taxes. When'I receive the package from the= collector's office, I will get the information out to you. Sincerely, R Vrur er Division Controller' Laidlaw Waste Svstems 29201 HENRY MAYO DRIVE, VALENCIA, CALIFORNIA 91355 TW.: {8051257-3855 ATTACHMENT 'A-3 OCT -31-95 TUE 16;17 P.03 LAIDLAW WASTE SYSTEMS Scp=ber 27, 1995 BLUE BARREL DISPOSAL COMPANY P.O. BOX 221540 NEWIIALL, CA 91322 Dear Valued Customer: The Los Angeles County Tax Collector has just informed me that the Los Angeles County Board of Supervisors has adjusted the Los Angeles County Business Tax mid added anew tax entitled, "Business License Tax on Disposal Facilities." ' I have been told by the tax collectors office that the Los Angeles County Business'Tax has been increased from 10% of gross revenues to 15% of gross revenues. This increase will be effective October 1, 1995. In addition, the tan collcmr's`oPficc infozinednie thata new tax will be levied on Los Angeles County landfills and will also -be effective October 1, 1995. 7hc Business Liccase Tax on Disposal Facilities will be S0_5 per ton. Please note that disposal pricing will retleaths chanSes mentioned above benatling October 1, 1995, I do not any additional infoimationat this time. It is Laidlaw's obIiption m You, as Laidlaw Is customer, to provide you with as much information as possible related to these taxes. When I receive the paclta;e from the tax collector's office, I will get the information out to You.. Sincerely, Ryan Wurglet Division Controller Laidlaw Waste Systems 29201 FIENRY MAYO DRIVE, VALENCIA, CALIFORNIA 91355 Tel'. (805)257-3655 ATTACHMENT A-4 OCT -31-95 TUE 16:16 U LAIDLAW WASTE SYSTEMS September 27, 1995 ATLAS DISPOSAL 21524 NORDOFF ST. . CHATSWORTIL CA 91313. Dear Valued Customer, The Los Angeles County Tax Collector has just informed me that the Los Angeles County Board of ` Supervisors has adjusted the Los Angeics County Business Tax and added a new tax entitled, "Business License Tax on Disposal Facilities." I have beet told by the tax collector's Office that the Los Angeles County Business. Tax has been increased from 10% of gross revenues to 15% of gross revenues. This increase will be effective October 1, 1995,. in, addition, the tax collector's office informed me that a new tax will be Ievied on Los Angeles County landfills and will also be effective Octwher 1, 1995 The Business.License Tax on Disposal Facilities will be SO 25 per ton. Please note that disposal pricing will reflect the changes mentioned above beginning October 1, 1995. I do norhave any additional information at this time. It is Laidlaw's obligation to you, as Iaidlaw's cnsmmer, to provide you witb as much information as possible related to these taxes. Whom I receive the. package from the rax collector's office, l will get the informatioq out to you. Sincerely RyaFi Wargler Division Conrrnller Laidlaw Write Svsteme P. 02 29201. HENRv MAYO DRIVE. VALENCIA, CALIFORNIA 91355 TeL: (8051257-3655 51 ATTACHMENT A-5 RESIDENTIAL RATE ADJUSTMENT METHODOLOGY isre _.:zSeriaSoTtdiWast►'i - fee s1T4/96 "- 1 Landfill Fee Per Ton, New Rate $34.88 2 Landfill Fee Per Ton, Jan. 1 Current Year 95 line 1 of nor r rt ad') $31.48 3 Change in Landfill Fee Per Ton (line 1 - line 2) $3.40 4 Percent Change in Landfill Fee Per Ton line 3 / line 2 10.80% Lme .:::; s SseSon'PrdducarPtkairxdex Nadu¢ _" 5 PPI* Finished Goods Unadjusted ,Jul , Prior Year 95) from BLS" 128.3 6 PPI` Finished Goods (Unadjusted), July, Prior Year 95) from BLS" 126 7 Change in PPI' (line 5 - line 6) 2.3 8 Percent Change in PPI' line 7 / line 6) 1.83% Lsre &aciwrsil u Id iRaFeCiw k7aTu® .' 9 Disposal Component Index Weight (line 33 of prior year rt ad) 26.45% 10 Percent Chane in Landfill Fee Per Ton (line 4) 10.80% 11 Rate Change for Disposal line 9 x line 10 2.86% 12 Service Component Index Weight line 34 of prior year rt ad' 73.55% 13 Percent Change in PPI*, Finished Goods line 8 1.83% 14 Rate Change for Service line 12 x line 13) 1,34% 15 Total Change in Single Family Rate line 11 / line 14) 4.20% 16 Current Rate Per Month from City Rafe Resolution $19.72 17 Rate Change Per Month line 15 x line 16) $0.83 18 Yard Trimmings Rate Not in place 18a New Rate Per Month, line 16 + line 17 + One 18 $20.55 Lme _.�r5octwnlYfzAfalTu 3'tata�haul tiFaWa 19 Disposal Component Index Weight Line 43 of prior year rte ad 30.93% 20 Percent Chane in Landfill Fee Per Ton line 4 10.80% 21 Rate Change for Disposal litre 19 x line 20) 3,34% 22 Service Component Index Weight (line 44 of prior year rte ad) 69.07% 23 Percent Change in PPI', Finished Goods (line B) 1.83% 24 Rate Change for Service (line 22 x line 23) 1.26% 25 Total Change in Multi -Family Rates line 21 + line 24) 4.60% Lina ..... ,.:;, ta�rifatGats -Value 26 Disposal Component Index Weight (line 9) 26.45% 27 Rate Change for Disposal line 11 2,86% 28 Adjusted Disposal Index (line 26 + line 27) 29.31% 29 Service Component Index Weigh line 12) 73.55% 30 Rate Change for Service line 14) 1,3496 31Adjusted Service Index 29 + line 30 74.89% 32 Total Adjusted Disposal & Service Index (line 28 + line 31) 104.20% 33 Revised Disposal Index Weight (line 28 / line 32) 28.13% 34 Revised Service Index Weight line 31 / line 32 71.87% 35 Total Revised Disposal & Service Index line 33+line 34) 100.00% V RavE.fm M �ttgl)rfr XLVeiI 'FfllN9ktYmet# N. 36 Disposal Component Index Weigh line 19) 30.93% 37 Rate Change for Disposal line 21) 3,34% 38 Adjusted Disposal Index line 36 + line 37) 34,27% 39 Service Component Index Weight (line 22) 69.07% 40 Rate Change for Service line 24 1,26% 41 Adjusted Service Index line 39 +Lina 40) 70.33% 42 Total Adjusted Disposal & Service Index line 38 + line 41) 104.60% 43 Revised Disposal Index Weigh line 381 Line 42 32.76% 44 Revised Service Index Weight line 41 / line 42) 67.24% 45 Total Revised Disposal & Service Index line 43 + line 44 100,00% 'PPI=Producer Price Index •BLS=Bureau of Labor Statistics `Hilton, Famkopf, Hobson Methodology Page 1 ATTACHMENT fXhomelsohvaste4niscbxceR9596ADJ.XLS11/1195