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HomeMy WebLinkAbout1995-11-28 - AGENDA REPORTS - SOLID WASTE FRANCHISE AMEND (2)MUNRYMENTRIM City Mana, Item to be UNFINISHED BUSINESS DATE: November 28, 1995 SUBJECT: SOLID WASTE FRANCHISE AMENDMENT RESOLUTION NO. 95-141 DEPARTMENT: Public Works BACKGROUND Lynn M. Harris The residential refuse franchise agreement provides for rate modifications based on changes in landfill tipping fees and the Producer Price Index (PPI). 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 Meeting held on November 14, 1995, staff advised Council that the haulers had requested an increase of $.83 in refuse rates per single family residence and a 4.6% increase for multi- family units. This rate increase includes adjustments to the PPI and tipping fees, new County taxes, and administrative fees. At that time, Council directed staff to reevaluate the increases and present an amended rate increase at the November 28, 1995 Council meeting. On November 15, 1995, staff reviewed the rate schedule. The rate for single family residences will increase $.50 per household; resulting in a total monthly rate of $20.22. Multi -family rates will increase a total of 2.68%, The actual rate to multi -family accounts will vary based on bin size and frequency of service. These adjustments are effective January 1, 1995. This increase does not include the new County taxes, which have been charged to landfills since October 1, 1995. In September of this year, the franchised haulers notified the City of their intention to pass through the new County taxes. According to existing franchise agreements, increases in landfill costs of less than 25% do not require City Council approval. Consequently, the haulers have discretion to pass through increased costs to customers, such as the new County taxes. Should the haulers choose to charge their customers for the new County taxes, the increase is estimated to be $.33 per single family residence and 1.96% to multi -family units. Adopted: 9s ggrenda Item: To avoid continued increases to refuse rates, a thorough evaluation of the existing franchise agreements and rate adjustment methodology should be conducted. A more equitable refuse rate structure may be achieved through options such as a unit pricing system whereby residents would be charged according to the amount of waste they generate and a single hauling system through a competitive process. RECOMMENDATION Adopt Resolution No. 95-141, which confirms increases in landfill fees and the Producer Price Index. Authorize staff to evaluate the effectiveness of the existing franchise agreements and rate adjustment methodology to accomplish an equitable rate structure and to meet the goals of AB 939 by the year 2000. ATTACHMENT Resolution No. 95-141 F910MMPW1CCAGE DA\RAT DJ2AGN RESOLUTION NO. 95-141 A RESOLUTION OF THE CITY OF SANTA CLARITA, CALIFORNIA ESTABLISHING INCREASES IN FEES 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, 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 refuse rates fluctuate due to increase in landfill costs and the Producer Price Index, and the franchise grantees should be compensated for those increases over which they have no control; and WHEREAS, the City's franchised residential haulers currently utilize the Chiquita Landfill and such action will impose a direct impact upon all City residents, and WHEREAS, On November 15, 1995, results of the City's rate adjustment analysis confirmed total increases in landfill tipping fees which reflect an increase in rates of one and twenty-one hundredths percent (1.21%) to single family households and one and forty-one hundredths percent (1.41%) to multi -family accounts, and WHEREAS, increases due to incremental changes in the Producer Price Index reflect an increase of one and thirty-four hundredths percent (1.34%) to single family households one and twenty-seven hundredths percent (1.27%) 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 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; Single family residential refuse rates will increase by two and fifty-five hundredths percent (2.551/o), which will result in a total monthly rate of $20.22 for standard service. Multi -family rates will increase a total of two and sixty-eight hundredeths percent (2.68%). The actual rate to multi -family accounts will vary based on bin size and frequency of service. A schedule of rates shall be prepared implementing the provisions of this paragraph. SECTION 2: The effective date of implementation shall be January 1, 1996, following adoption of Resolution No. 95-141 for the collection, transportation, recycling and disposal of solid waste, green wastes and recyclables. SECTION 3: 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: COUNCILN EMBERS ABSENT: COUNCILMEMBERS CITY CLERK