HomeMy WebLinkAboutD-2 - Refuse Rate AdjustmentPUBLIC HEARING
D-2
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: LOUIE F. LACASELLA, MANAGEMENT ANALYST
DATE: JULY 18, 2016
SUBJECT: 2016 REFUSE RATE ADJUSTMENT PUBLIC HEARING
SUMMARY:
The City has entered into an Exclusive Franchise Agreement with Athens Services (“franchised hauler”)
for refuse collection and recycling services. Each year refuse rates are adjusted to reflect changes in the
cost of doing business and changes in disposal costs. In addition, the franchised hauler may request a
rate adjustment due to extraordinary increases in operating costs arising out of new laws, mandates, or
other conditions affecting costs (e.g., insurance). Pursuant to Proposition 218, all refuse rate
adjustments must be approved at a public hearing with a notice to the public 45 days in advance of the
hearing. The proposed actions consist of opening the Public Hearing, receiving public testimony and
closing the Public Hearing. The proposed actions also adopt Resolution No. 2016-C52 approving the
annual refuse collection rate adjustment for Athens Services effective July 19, 2016.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1) Open the Public Hearing, receive public testimony, close the Public Hearing; and
2) Adopt Resolution No. 2016-C52 approving the annual refuse collection rate adjustment for
Athens Services effective July 19, 2016.
DISCUSSION:
Refuse from residential and commercial properties in the City is collected by Athens Services and taken
to Athens’ Material Recovery Facility (MRF) where most recyclables are removed. The residual waste
is then transported by Athens to a landfill designated by the City. Following the closure of Puente Hills
Landfill on October 31, 2013, the City directed Athens to utilize the Mid-Valley Landfill in the City of
Rialto.
Refuse rates are comprised of four components: (1) processing/disposal fees; (2) service fees; (3)
franchise fees; and (4) AB 939 fees. Residential rates include a fifth component: uncollectable accounts
and customer service charges. Each year refuse rates can be adjusted to reflect changes in the cost of
APPROVED
COUNCILMEETING
7/18/2016
2016 Refuse Rate Adjustment and Public Hearing
July 18, 2016
Page 2
doing business, as measured by fluctuations in the Consumer Price Index (CPI), published by the U.S.
Department of Labor, Bureau of Labor Statistics, for the Los Angeles, Long Beach, San Bernardino
Standard Metropolitan Statistical Area and to account for increases in disposal costs.
According to the U.S. Department of Labor, Bureau of Labor Statistics, the CPI increased by 3.10%
from January 2015 to January 2016. The cost of disposal at the Mid-Valley Landfill where the City’s
waste is disposed of is anticipated to increase from $29.53 to $29.75 per ton. In addition, starting with
the FY 2015/16 rate adjustment period, an incremental transportation cost of $5.05 was added to per ton
disposal costs to help Athens recover the increase in transportation costs to divert waste to Mid-Valley
after the closure Puente Hills Landfill; this portion of the disposal cost is subject to CPI. Pursuant the
City’s franchise agreement with Athens, disposal costs are passed through to the ratepayers
automatically. Based on the change in the CPI, refuse rates will increase 3.10% per month for all
customer classes.
In addition to adjusting rates for changes in the CPI and disposal costs, Athens is requesting an
extraordinary increase to reflect changes in law or new mandates. Specifically, Section 5.02 of the
Franchise Agreement between the City and Athens provides the following language in regards to
extraordinary requests:
Operating Cost Changes - Rate adjustments for extraordinary changes in operating costs, such as
insurance and maintenance, shall be initiated by the Contractor. Contractor shall submit a request to
the City between September and March in the year the rate adjustment is expected. The Contractor shall
submit cost information verified by a CPA or a consultant approved by the City justifying rate increases
for extraordinary operating cost increases. The CPA or consultant shall enter into a confidentiality
agreement with the Contractor and agree not to release confidential information to the City.
The franchise agreement provides that the City Council shall review and approve a request for
extraordinary increase and such approval shall not be unreasonably withheld.
In September 2015, the Los Angeles County Board of Supervisors adopted an ordinance that all
businesses within the unincorporated areas be required to pay a higher minimum wage then what is
required by either Federal or State law. Athens’ facility is located in the unincorporated area of Industry
and thus a requirement that they will need to follow starting July 1, 2016. In addition, on July 1, 2015,
the State of California enacted AB 304 which provides employees with paid sick leave. At this time,
Athens is requesting a 2.45% extraordinary personnel cost rate increase outside th e CPI adjustment to
recover those new mandated costs (Attachment 2).
The proposed FY 2016/17 rates (Attachment 1), which reflect the changes in the CPI, disposal cost
increases, and the aforementioned extraordinary adjustment, is summarized on the next page in Table 1:
2016 Refuse Rate Adjustment and Public Hearing
July 18, 2016
Page 3
TABLE 1
Proposed FY 2016/17 Rates
July-June July-June
2015-2016 2016-2017
SERVICES
Current Proposed Change
Total
Monthly Rate
Total
Monthly Rate % $
Residential Barrel
Service $23.62 $25.44 7.69% $1.82
Multi-family Bin $21.19 $21.88 3.24% $0.69
Commercial Bins
Size - 3 Cubic Yards
1 Day/Week $117.29 $128.15 9.26% $10.87
2 Days/Week $175.30 $193.72 10.51% $18.42
3 Days/Week $233.38 $259.37 11.14% $26.00
4 Days/Week $291.28 $324.84 11.52% $33.56
5 Days/Week $349.48 $390.63 11.77% $41.15
6 Days/Week $466.77 $518.80 11.15% $52.03
Size - 2 Cubic Yards
1 Day/Week $104.06 $112.75 8.34% $8.68
2 Days/Week $150.96 $165.13 9.38% $14.17
3 Days/Week $197.64 $217.31 9.95% $19.67
4 Days/Week $245.37 $270.59 10.28% $25.22
5 Days/Week $291.80 $322.49 10.52% $30.69
Size - 1.5 Cubic
Yards
1 Day/Week $79.35 $85.94 8.30% $6.58
2 Days/Week $133.24 $144.98 8.82% $11.75
3 Days/Week $186.34 $203.21 9.05% $16.87
Size - 30 Cubic
Yards* $385.44 $403.87 4.78% $18.43
*Rate includes 1 Ton of Waste Processed at Material Recovery Facility
(MRF)
On November 5, 1996, the people of the state of California voted in favor of Proposition 218, the “Right
to Vote on Taxes Act.” Proposition 218 added Articles 13C and 13D to the California Constitution
implementing restrictions on methods by which local governments can create or increase taxes, fees and
charges without taxpayer consent. Specifically, Proposition 218 requires the City to provide certain
notification of new or increased assessments, charges and user fees, and in certain cases, requires a
balloting and election of property owners prior to implementing any new or increased assessments,
charges and user fees. The City Attorney has advised that based on the requirements of Proposition 218
all refuse rate adjustments must be approved at a public hearing with a notice to the public 45 days in
advance of the hearing. A copy of the notice is attached (Attachment 3) that was mailed to all property
owners on May 18th, meeting the 45 day advance notice required by Proposition 218.
The proposed rate adjustments are slated to go into effect July 19, 2016. Staff conducted a survey of
refuse rates currently in effect in other local cities. A copy of this survey is attached (Attachment 4).
With the proposed rate increase the City’s refuse rates is still very competitive. In fact, even with the
proposed rate increase, the Azusa Single Family Residential Rate is 5.64% below the average rate of the
2016 Refuse Rate Adjustment and Public Hearing
July 18, 2016
Page 4
surveyed cities.
Normally, any cost increase goes into effect on July 1st. Due to the extraordinary increase that Athens is
requesting, Staff required more time to analyze the request. This resulted in a delay in scheduling the
hearing date. Consequently, the hearing date occurred after July 1st. If the proposed rates are approved,
Athens has agreed to delay implementation until July 19th and will absorb the differential cost of the
current rates and proposed FY 2016/17 rates for the period July 1 through July 18.
FISCAL IMPACT:
The fiscal impacts of proposed rate adjustments will vary by customer class: single family residential
rates will increase 7.69% or by $1.82 per month; multi-family bin rates will increase 3.24% or by $0.69
per month; and commercial rates will increase 4.78% to 11.77% depending on service level. The
fluctuations in rate changes by customer class are largely due to the variance in disposal tonnages and
revenues by the different customer types.
Prepared by: Fiscal Impact Reviewed by:
Louie F. Lacasella Talika M. Johnson
Management Analyst Director of Finance
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
Attachments:
1) Draft Refuse Rate Adjustment Fiscal Year 2016-2017
2) Extraordinary Cost Request Letter from Athens Services
3) Notice of Public Hearing
4) Rate Survey
5) Resolution NO. 2016-C52
City of Azusa
Refuse Rate Adjustment Fiscal Year 2016-17
Rate Sheet
Jul - Jun Jul - Jun Jul - Jun Jul - Jun Jun - Jul Jul - Jun Jul - Jun Jul - Jun Jun - Jul Jul - Jun Jun - Jul Jul - Jun
Year 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017
New New New New Uncollectible Uncollectible New
Service Processing/Processing/Service Service Franchise Franchise AB 939 AB 939 Accounts Accounts Total Total %$
Disposal Fee Disposal Fee Fee Fee Fee Fee Fee Fee +CS Charge +CS Charge Rate Rate Change Change
Single Family
(Trash & Green)9.48 10.53 10.27 10.84 2.20 2.41 0.75 0.75 0.92 0.91 23.62 25.44 7.69%1.82$
Multifamily Bin 8.74 8.88 8.92 9.41 1.96 2.03 0.67 0.67 0.90 0.89 21.19 21.88 3.24%0.69$
Commercial Bins
3 Cubic Yard
1 Day/Week 40.79 47.15 61.47 64.88 11.36 12.45 3.67 3.67 117.29 128.15 9.26%10.87$
2 Days/Week 81.58 94.31 69.57 73.43 16.80 18.63 7.35 7.35 175.30 193.72 10.51%18.42$
3 Days/Week 122.37 141.46 77.75 82.06 22.24 24.83 11.02 11.02 233.38 259.37 11.14%26.00$
4 Days/Week 163.15 188.61 85.78 90.54 27.67 31.01 14.68 14.68 291.28 324.84 11.52%33.56$
5 Days/Week 203.94 235.77 94.06 99.28 33.12 37.22 18.36 18.36 349.48 390.63 11.77%41.15$
6 Days/Week 244.73 282.92 155.52 164.16 44.49 49.69 22.03 22.03 466.77 518.80 11.15%52.03$
2 Cubic Yard
1 Day/Week 27.19 31.44 64.26 67.83 10.16 11.03 2.45 2.45 104.06 112.75 8.34%8.68$
2 Days/Week 54.38 62.87 77.06 81.33 14.61 16.02 4.91 4.91 150.96 165.13 9.38%14.17$
3 Days/Week 81.58 94.31 89.67 94.65 19.03 20.99 7.36 7.36 197.64 217.31 9.95%19.67$
4 Days/Week 108.77 125.74 103.23 108.96 23.56 26.08 9.81 9.81 245.37 270.59 10.28%25.22$
5 Days/Week 135.96 157.18 115.64 122.05 27.96 31.02 12.24 12.24 291.80 322.49 10.52%30.69$
1.5 Cubic Yard
1 Day/Week 20.39 23.58 49.38 52.12 7.75 8.41 1.83 1.83 79.35 85.94 8.30%6.58$
2 Days/Week 40.79 47.15 75.83 80.04 12.96 14.13 3.66 3.66 133.24 144.98 8.82%11.75$
3 Days/Week 61.18 70.73 101.58 107.22 18.09 19.77 5.49 5.49 186.34 203.21 9.05%16.87$
Saturday Service 40.79 47.15 61.47 64.88 11.36 12.45 3.67 3.67 117.29 128.15 9.26%10.87$
Locked Lid Bin Change Out n/a n/a 64.78 68.38 7.20 7.60 n/a n/a 71.47 75.98 6.31%4.51$
Ongoing Service n/a n/a 7.15 7.54 0.79 0.84 n/a n/a 7.94 8.38 5.48%0.44$
Temp Bins 9.42 10.89 97.21 102.60 11.85 12.61 0.84 0.84 119.32 126.94 6.39%7.62$
X-Tra Dumps Same Day 9.42 10.89 39.94 42.15 5.49 5.89 0.84 0.84 55.69 59.77 7.33%4.08$
Different Day 9.42 10.89 60.93 64.31 7.82 8.35 0.84 0.84 79.01 84.39 6.81%5.38$
Commercial Barrels 8.74 8.88 19.78 20.88 3.17 3.31 0.67 0.67 32.36 33.74 4.26%1.38$
Roll Offs w/ 1 ton*72.79 74.52 267.71 282.57 37.83 39.67 7.11 7.11 385.44 403.87 4.78%18.43$
*MRF Processed
Rate Change
ATTACHMENT 1
City of Azusa
Refuse Rate Adjustment Fiscal Year 2016-17
Residential/Commercial Barrel Customers - True-up of Processing/Disposal Costs
A B C = A x B D=Sum of A E=Sum of C
Actual Barrel
Tons Collected
Actual Per
Ton Rate Actual Cost Total Tons Total Cost
MRF PROCESSING COSTS:
Apr-15 1,085.21 $ 72.45 78,623.46$
May-15 1,030.38 $ 72.45 74,651.03$
Jun-15 1,089.24 $ 72.45 78,915.44$
Jul-15 1,206.47 $ 72.79 87,821.25$
Aug-15 1,014.93 $ 72.79 73,878.69$
Sep-15 1,079.93 $ 72.79 78,610.16$
Oct-15 1,053.04 $ 72.79 76,652.79$
Nov-15 1,041.46 $ 72.79 75,809.86$
Dec-15 1,148.93 $ 72.79 83,632.80$
Jan-16 1,067.25 $ 72.79 77,687.16$
Feb-16 1,020.42 $ 72.79 74,278.31$
Mar-16 1,149.03 $ 72.79 83,640.08$ 12,986.29 944,201.03$
LANDFILL DIRECT HAUL:
April 2015 - June 2015 0.00 $ 45.62 -$
July 2015 - March 2016 0.00 $ 45.59 -$ - -$
GREEN WASTE COSTS:
Apr-15 206.42 $ 23.69 4,890.09$
May-15 163.24 $ 23.69 3,867.16$
Jun-15 185.22 $ 23.69 4,387.86$
Jul-15 129.25 $ 23.69 3,061.93$
Aug-15 226.72 $ 23.69 5,371.00$
Sep-15 267.04 $ 23.69 6,326.18$
Oct-15 269.78 $ 23.69 6,391.09$
Nov-15 191.76 $ 24.40 4,679.08$
Dec-15 201.65 $ 24.40 4,920.40$
Jan-16 200.90 $ 24.40 4,902.10$
Feb-16 189.82 $ 24.40 4,631.74$
Mar-16 329.81 $ 24.40 8,047.59$ 2,561.61 61,476.22$
TOTAL COSTS 15,547.90 1,005,677.25$
A B C D E=(AxB)+(CxD)F = Sum of E
Res Cust Count Rate
Comm Barrel
Count Rate Revenue Total Revenues
MRF/DISPOSAL REVENUES:
Apr-15 8,506.10 8.22$ 38 $6.46 70,165.65$
May-15 8,511.37 8.22$ 38 $6.46 70,208.95$
Jun-15 8,511.34 8.22$ 38 $6.46 70,208.73$
Jul-15 8,546.68 9.48$ 39 $8.74 81,363.39$
Aug-15 8,535.71 9.48$ 38 $8.74 81,250.65$
Sep-15 8,542.58 9.48$ 38 $8.74 81,315.78$
Oct-15 8,565.34 9.48$ 38 $8.74 81,531.54$
Nov-15 8,552.11 9.48$ 37 $8.74 81,397.38$
Dec-15 8,559.21 9.48$ 37 $8.74 81,464.69$
Jan-16 8,563.34 9.48$ 35 $8.74 81,486.36$
Feb-16 8,566.57 9.48$ 35 $8.74 81,516.98$
Mar-16 8,576.61 9.48$ 35 $8.74 81,612.16$ 943,522.27$
TOTAL MRF/DISPOSAL REVENUES 943,522.27$
True-up Actual Costs vs. Revenues Collected
(Credit)/Deficiency for Current Period 62,154.98$
(Credit)/Deficiency Prior Period Rate Adjustment (8,208.28)$
Total Annual (Credit)/Deficiency This Adjustment 53,946.70$
Average Monthly Customer Count Apr 2015 - Mar 2016 8,544.75
(Credit)/Deficiency Per Customer/Month over 12 months 0.53$
City of Azusa
Refuse Rate Adjustment Fiscal Year 2016-17
Residential Bin Customers - True-up of Processing/Disposal Costs
A B C = A x B D=Sum of A E=Sum of C
Actual Bin Tons
Collected
Actual Per
Ton Rate Actual Cost Total Tons Total Cost
MRF PROCESSING COSTS:
Apr-15 665.71 72.45$ 48,230.69$
May-15 603.27 72.45$ 43,706.91$
Jun-15 677.90 72.45$ 49,113.86$
Jul-15 678.00 72.79$ 49,352.91$
Aug-15 645.42 72.79$ 46,981.35$
Sep-15 686.32 72.79$ 49,958.54$
Oct-15 688.78 72.79$ 50,137.61$
Nov-15 643.99 72.79$ 46,877.26$
Dec-15 681.52 72.79$ 49,609.14$
Jan-16 683.85 72.79$ 49,778.74$
Feb-16 716.92 72.79$ 52,185.97$
Mar-16 753.08 72.79$ 54,818.13$ 8,124.76 590,751.10$
LANDFILL DIRECT HAUL:
April 2015 - June 2015 0.00 $ 29.04 -$
July 2015 - March 2016 0.00 $ 29.53 -$ - -$
GREEN WASTE COSTS:
April 2015 - October 2015 0.00 $ 23.69 -$
November 2015 - March 2016 0.00 $ 24.40 -$ - -$
TOTAL COSTS 8,124.76 590,751.10$
A B C D = B x C E = Sum of A F = Sum of D
Cubic Yards
Collected Rate Bin Cus Count Revenue
Total CY
Collected Total Revenue
MRF/DISPOSAL REVENUES:
Apr-15 19,692 6.46$ 6,184.6905 39,953.10$
May-15 18,620 6.46$ 6,079.7100 39,274.93$
Jun-15 18,587 6.46$ 5,735.3966 37,050.66$
Jul-15 19,848 8.74$ 5,726.6151 50,050.62$
Aug-15 19,860 8.74$ 5,716.4700 49,961.95$
Sep-15 19,998 8.74$ 5,964.7800 52,132.18$
Oct-15 19,905 8.74$ 6,193.6608 54,132.60$
Nov-15 20,061 8.74$ 6,187.1302 54,075.52$
Dec-15 20,003 8.74$ 6,210.4281 54,279.14$
Jan-16 20,414 8.74$ 6,172.3958 53,946.74$
Feb-16 20,492 8.74$ 6,189.4304 54,095.62$
Mar-16 20,550 8.74$ 6,207.1280 54,250.30$ 238,030 593,203.34$
TOTAL MRF/DISPOSAL REVENUES 593,203.34$
True-up Actual Costs vs. Revenues Collected
(Credit)/Deficiency for Current Period (2,452.23)$
(Credit)/Deficiency Prior Period Rate Adjustment 44,262.45$
Total Annual (Credit)/Deficiency This Adjustment 41,810.22$
Average Monthly Customer Count Apr 2015 - Mar 2016 6,047.32
(Credit)/Deficiency Per Customer/Month over 12 months 0.58$
City of Azusa
Refuse Rate Adjustment Fiscal Year 2016-17
Residential/Commercial Barrel and Bin Customers - MRF Processing/Disposal Fee Calculation
Agreement Section 5.0 Adjustment Procedure
MRF Per Ton Rate Breakdown:Effective Rate Proposed Rate
April 2016 -
June 2016 CPI
July 2016 -
March 2017
A Processing Cost Per Ton:$45.59 3.10%$47.01
B Landfill Cost Per Ton:29.53 29.75
C MRF Portion of Landfill at 75%$22.15 $22.31
D Incremental Transportation Cost and Export Fee of $1.50/Ton 5.05 3.10%5.2
Per Ton Rate (Total of A + C + D)72.79$ 74.52$
MRF and Green Waste Processing/Disposal Fee Residential/Commercial Barrel Customers:
Projected Costs based on Actual Tons Disposed April 2015 - March 2016:Extension/
Tons Rate Amount
Green Waste Costs (based on Apr 15 - Oct 15 tonnage)1,447.67 24.40$ 35,323.15$
Green Waste Costs (based on Nov 15 - Mar 16 tonnage)1,113.94 25.13$ 27,993.31
2,561.61
MRF Costs (based on Apr 15 - June 15 tonnage) 3,204.83 72.79$ 233,294.65
MRF Costs (based on July 15 - Mar 16 tonnage)9,781.46 74.52$ 728,960.27
Annual Required Revenue for MRF & GreenWaste/Disposal Costs 12,986.29 1,025,571.38$
Monthly Required Revenue for MRF & GreenWaste/Disposal Costs 85,464.28$
Adjusted Average Monthly Customer Count (based on Apr 15 - Mar 16)8,544.75
Monthly Rate for MRF Processing/Disposal 10.00$
(Credit)/Deficiency in Rates (April 2015 - Mar 2016 + prior bal)0.53$
New Monthly Processing/Disposal Rate for Jul 16 - June 17 10.53$
MRF Processing/Disposal Fee Residential Bin Customers:
Projected Costs based on Actual Tons Disposed April 2015 - March 2016:Extension/
Tons Rate Amount
MRF Costs (based on Apr 15 - June 15 tonnage) 1,946.88 72.79$ 141,722.55
MRF Costs (based on July 15- Mar 16 tonnage)6,177.88 74.52$ 460,404.59
Annual Required Revenue for MRF/Disposal Costs:8,124.76 602,127.14$
Monthly Required Revenue for MRF/Disposal Costs: 50,177.26$
Adjusted Average Monthly Customer Count (based on Apr 15 - Mar 16)6,047.32
Monthly Rate for MRF Processing/Disposal 8.30$
(Credit)/Deficiency in Rates (April 2015 - Mar 2016 + prior bal)0.58$
New Monthly Processing/Disposal Rate for Jul 16 - June 17 8.88$
City of Azusa
Refuse Rate Adjustment Fiscal Year 2016-17
Commercial Bin Customers - True-up of Processing/Disposal Costs
A B C = A x B D E = C - D
Actual Bin Tons
Collected
Actual Per
Ton Rate Actual Cost
Revenues
Collected
(Credit)
/Deficiency
MRF PROCESSING:
Apr-15 919.28 $ 72.45 66,601.84$ 52,342.96$ 14,258.88$
May-15 953.21 $ 72.45 69,060.06 49,492.22 19,567.84
Jun-15 919.84 $ 72.45 66,642.41 49,405.85 17,236.56
Jul-15 921.77 $ 72.79 67,097.39 62,277.39 4,820.00
Aug-15 868.02 $ 72.79 63,184.83 62,311.38 873.44
Sep-15 945.41 $ 72.79 68,818.19 62,746.46 6,071.73
Oct-15 928.82 $ 72.79 67,610.58 62,454.14 5,156.43
Nov-15 878.04 $ 72.79 63,914.20 62,943.61 970.60
Dec-15 927.93 $ 72.79 67,545.79 62,760.06 4,785.73
Jan-16 930.96 $ 72.79 67,766.35 64,051.70 3,714.65
Feb-16 965.23 $ 72.79 70,260.93 64,296.43 5,964.50
Mar-16 1,035.70 $ 72.79 75,390.57 64,479.98 10,910.60
Subtotal 11,194.21 813,893.15$ 719,562.19$ 94,330.96$
LANDFILL DIRECT HAUL:
April 2015 - June 2015 0.00 $ 29.04 -$ -$ -$
July 2015 - March 2016 0.00 $ 29.53 - - -
Subtotal 0.00 -$ -$ -$
GREEN WASTE:
April 2015 - October 2015 0.00 $ 23.69 -$ -$ -$
November 2015 - March 2016 0.00 $ 24.40 - - -
Subtotal 0.00 -$ -$ -$
TEMPORARY BIN DUMPS:
April 2015- June 2015 154.00 $ 7.98 -$ 1,228.92$ (1,228.92)$
July 2015 - March 2016 332.00 $ 9.42 - 3,127.44$ (3,127.44)
Subtotal 486.00 -$ 4,356.36$ (4,356.36)$
TOTALS 11,680.21 813,893.15$ 723,918.55$ 89,974.60$
True-up Actual Costs vs. Revenues Collected
(Credit)/Deficiency for Current Period 89,974.60$
(Credit)/Deficiency Prior Period Rate Adjustment (54,532.54)$
(Credit)/Deficiency This Adjustment 35,442.06$
Total Cubic Yards of Service April 2015 - March 2016 238,030
(Credit)/Deficiency Per Cubic Yard $0.15
City of Azusa
Refuse Rate Adjustment Fiscal Year 2016-17
Commercial Bin Customers - MRF Processing/Disposal Fee Calculation
Agreement Section 5.0 Adjustment Procedure
MRF Per Ton Rate Breakdown:Effective Rate Proposed Rate
April 2016 - June
2016 CPI
July 2016 - March
2017
A Processing Cost Per Ton:$45.59 3.10%$47.01
B Landfill Cost Per Ton:$29.53 29.75
C MRF Portion of Landfill at 75%$22.15 $22.31
D Incremental Transportation Cost and Export Fee of $1.50/Ton $5.05 3.10%5.20
Per Ton Rate (Total of A + C + D)72.79$ 74.52$
MRF Processing/Disposal Fee Per Cubic Yard (CY) of Service:
Projected Costs based on Actual Tons Disposed April 2015 - March 2016:Extension/
Tons Rate Amount
MRF Costs (based on Apr 15 - June 15 tonnage) 2,792.33 72.79$ 203,259.02$
MRF Costs (based on July 15- Mar 16 tonnage)8,401.88 74.52$ 626,123.24
Annual Required Revenue for MRF/Disposal Costs 11,194.21 829,382.26$
Annual CYs of Service (based on April 2015 - Mar 2016)238,030
MRF Rate Per CY of Service 3.48$
(Credit)/Deficiency in Rates (April 2015 - March 2016 + prior bal)0.15$
New Rate Per Cubic Yard of Service for Jul 16 - June 17 3.63$
City of Azusa
Refuse Rate Adjustment Fiscal Year 2016-17
Commercial Bin Customers - Processing/Disposal Fee Revenues Collected
Apr-15 May-15 Jun-15 Jul-15 Aug-15
1.5 CY Bin
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
1 133 17.28$ 2,298.24$ 136 17.28$ 2,350.08$ 135 17.28$ 2,332.80$ 137 20.39$ 2,794.02$ 138 20.39$ 2,814.41$
2 3 34.55$ 103.65 3 34.55$ 103.65 3 34.55$ 103.65 3 40.79$ 122.37 3 40.79$ 122.37
3 0 51.83$ - 0 51.83$ - 0 51.83$ - 0 61.18$ - 0 61.18$ -
4 0 69.11$ - 0 69.11$ - 0 69.11$ - 0 81.58$ - 0 81.58$ -
5 0 86.39$ - 0 86.39$ - 0 86.39$ - 0 101.97$ - 0 101.97$ -
6 0 103.67$ - 0 103.67$ - 0 103.67$ - 0 122.37$ - 0 122.37$ -
Subtotal 136 2,401.89$ 139 2,453.73$ 138 2,436.45$ 140 2,916.38$ 141 2,936.78$
2.0 CY Bin
1 32 23.04$ 737.28$ 32 23.04$ 737.28$ 32 23.04$ 737.28$ 32 27.19$ 870.16$ 31 27.19$ 842.96$
2 3 46.07$ 138.21 3 46.07$ 138.21 3 46.07$ 138.21 3 54.38$ 163.15 3 54.38$ 163.15
3 1 69.11$ 69.11 1 69.11$ 69.11 1 69.11$ 69.11 1 81.58$ 81.58 1 81.58$ 81.58
4 0 92.14$ - 0 92.14$ - 0 92.14$ - 0 108.77$ - 0 108.77$ -
5 0 115.18$ - 0 115.18$ - 0 115.18$ - 0 135.96$ - 0 135.96$ -
6 0 138.22$ - 0 138.22$ - 0 138.22$ - 0 163.15$ - 0 163.15$ -
Subtotal 36 944.60$ 36 944.60$ 36 944.60$ 36 1,114.89$ 35 1,087.70$
3.0 CY Bin
1 249 34.55$ 8,602.95$ 252 34.55$ 8,706.60$ 250 34.55$ 8,637.50$ 252 40.79$ 10,278.73$ 252 40.79$ 10,278.73$
2 143 69.11$ 9,882.73 142 69.11$ 9,813.62 145 69.11$ 10,020.95 147 81.58$ 11,991.85 147 81.58$ 11,991.85
3 93 103.66$ 9,640.38 113 103.66$ 11,713.58 111 103.66$ 11,506.26 89 122.37$ 10,890.56 88 122.37$ 10,768.19
4 17 138.21$ 2,349.57 16 138.21$ 2,211.36 16 138.21$ 2,211.36 20 163.15$ 3,263.09 21 163.15$ 3,426.24
5 76 172.77$ 13,130.52 49 172.77$ 8,465.73 49 172.77$ 8,465.73 77 203.94$ 15,703.61 77 203.94$ 15,703.61
6 26 207.32$ 5,390.32 25 207.32$ 5,183.00 25 207.32$ 5,183.00 25 244.73$ 6,118.29 25 244.73$ 6,118.29
Subtotal 604 48,996.47$ 597 46,093.89$ 596 46,024.80$ 610 58,246.12$ 610 58,286.91$
Total 776 52,342.96$ 772 49,492.22$ 770 49,405.85$ 786 62,277.39$ 786 62,311.38$
7 of 10
1.5 CY Bin
1
2
3
4
5
6
Subtotal
2.0 CY Bin
1
2
3
4
5
6
Subtotal
3.0 CY Bin
1
2
3
4
5
6
Subtotal
Total
Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
138 20.39$ 2,814.41$ 139 20.39$ 2,834.81$ 139 20.39$ 2,834.81$ 138 20.39$ 2,814.41$ 138 20.39$ 2,814.41$
3 40.79$ 122.37 3 40.79$ 122.37 3 40.79$ 122.37 3 40.79$ 122.37 2 40.79$ 81.58
0 61.18$ - 0 61.18$ - 0 61.18$ - 0 61.18$ - 0 61.18$ -
0 81.58$ - 0 81.58$ - 0 81.58$ - 0 81.58$ - 0 81.58$ -
0 101.97$ - 0 101.97$ - 0 101.97$ - 0 101.97$ - 0 101.97$ -
0 122.37$ - 0 122.37$ - 0 122.37$ - 0 122.37$ - 0 122.37$ -
141 2,936.78$ 142 2,957.17$ 142 2,957.17$ 141 2,936.78$ 140 2,895.99$
32 27.19$ 870.16$ 31 27.19$ 842.96$ 31 27.19$ 842.96$ 31 27.19$ 842.96$ 30 27.19$ 815.77$
3 54.38$ 163.15 3 54.38$ 163.15 3 54.38$ 163.15 3 54.38$ 163.15 4 54.38$ 217.54
1 81.58$ 81.58 1 81.58$ 81.58 1 81.58$ 81.58 1 81.58$ 81.58 1 81.58$ 81.58
0 108.77$ - 0 108.77$ - 0 108.77$ - 0 108.77$ - 0 108.77$ -
0 135.96$ - 0 135.96$ - 0 135.96$ - 0 135.96$ - 0 135.96$ -
0 163.15$ - 0 163.15$ - 0 163.15$ - 0 163.15$ - 0 163.15$ -
36 1,114.89$ 35 1,087.70$ 35 1,087.70$ 35 1,087.70$ 35 1,114.89$
252 40.79$ 10,278.73$ 251 40.79$ 10,237.94$ 252 40.79$ 10,278.73$ 254 40.79$ 10,360.30$ 248 40.79$ 10,115.57$
147 81.58$ 11,991.85 146 81.58$ 11,910.27 141 81.58$ 11,502.39 141 81.58$ 11,502.39 136 81.58$ 11,094.50
88 122.37$ 10,768.19 88 122.37$ 10,768.19 93 122.37$ 11,380.02 91 122.37$ 11,135.29 88 122.37$ 10,768.19
21 163.15$ 3,426.24 17 163.15$ 2,773.62 17 163.15$ 2,773.62 17 163.15$ 2,773.62 20 163.15$ 3,263.09
79 203.94$ 16,111.50 79 203.94$ 16,111.50 79 203.94$ 16,111.50 79 203.94$ 16,111.50 88 203.94$ 17,946.98
25 244.73$ 6,118.29 27 244.73$ 6,607.75 28 244.73$ 6,852.48 28 244.73$ 6,852.48 28 244.73$ 6,852.48
612 58,694.80$ 608 58,409.28$ 610 58,898.74$ 610 58,735.58$ 608 60,040.82$
789 62,746.46$ 785 62,454.14$ 787 62,943.61$ 786 62,760.06$ 783 64,051.70$
8 of 10
1.5 CY Bin
1
2
3
4
5
6
Subtotal
2.0 CY Bin
1
2
3
4
5
6
Subtotal
3.0 CY Bin
1
2
3
4
5
6
Subtotal
Total
Jan-16 Feb-16 Mar-16 TOTAL
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Bin
Count
Effective
Processing/
Disposal
Fee Revenue
Avg.
Customer
Count
Revenues
Collected
140 20.39$ 2,855.20$ 141 20.39$ 2,875.60$ 138 32,433.21$
3 40.79$ 122.37 3 40.79$ 122.37 3 1,371.45
0 61.18$ - 0 61.18$ - 0 -
0 81.58$ - 0 81.58$ - 0 -
0 101.97$ - 0 101.97$ - 0 -
0 122.37$ - 0 122.37$ - 0 -
143 2,977.57$ 144 2,997.96$ 141 33,804.66$
30 27.19$ 815.77$ 30 27.19$ 815.77$ 31 9,771.33$
4 54.38$ 217.54 4 54.38$ 217.54 3 2,046.17
1 81.58$ 81.58 1 81.58$ 81.58 1 941.52
0 108.77$ - 0 108.77$ - 0 -
0 135.96$ - 0 135.96$ - 0 -
0 163.15$ - 0 163.15$ - 0 -
35 1,114.89$ 35 1,114.89$ 35 12,759.03$
252 40.79$ 10,278.73$ 254 40.79$ 10,360.30$ 252 118,414.81$
136 81.58$ 11,094.50 137 81.58$ 11,176.08 142 133,972.96
88 122.37$ 10,768.19 88 122.37$ 10,768.19 93 130,875.23
20 163.15$ 3,263.09 20 163.15$ 3,263.09 19 34,998.00
88 203.94$ 17,946.98 88 203.94$ 17,946.98 76 179,756.14
28 244.73$ 6,852.48 28 244.73$ 6,852.48 27 74,981.37
612 60,203.97$ 615 60,367.13$ 608 672,998.50$
790 64,296.43$ 794 64,479.98$ 784 719,562.19$
9 of 10
City of Azusa
Refuse Rate Adjustment Fiscal Year 2016-17
Commercial Bin Service - Cubic Yards of Service Per Month
# of Services
per Week Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Total
1.5 CY Bin
1 864 884 877 890 897 897 903 903 897 897 910 916 10,735
2 39 39 39 39 39 39 39 39 39 26 39 39 455
3 0 0 0 0 0 0 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal 903 923 916 929 936 936 942 942 936 923 949 955 11,190
2.0 CY Bin
1 277 277 277 277 269 277 269 269 269 260 260 260 3,241
2 52 52 52 52 52 52 52 52 52 69 69 69 675
3 26 26 26 26 26 26 26 26 26 26 26 26 312
4 0 0 0 0 0 0 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal 355 355 355 355 347 355 347 347 347 355 355 355 4,228
3.0 CY Bin
1 3,237 3,276 3,250 3,276 3,276 3,276 3,263 3,276 3,302 3,224 3,276 3,302 39,234
2 3,718 3,692 3,770 3,822 3,822 3,822 3,796 3,666 3,666 3,536 3,536 3,562 44,408
3 3,627 4,407 4,329 3,471 3,432 3,432 3,432 3,627 3,549 3,432 3,432 3,432 43,602
4 884 832 832 1,040 1,092 1,092 884 884 884 1,040 1,040 1,040 11,544
5 4,940 3,185 3,185 5,005 5,005 5,135 5,135 5,135 5,135 5,720 5,720 5,720 59,020
6 2,028 1,950 1,950 1,950 1,950 1,950 2,106 2,184 2,184 2,184 2,184 2,184 24,804
Subtotal 18,434 17,342 17,316 18,564 18,577 18,707 18,616 18,772 18,720 19,136 19,188 19,240 222,612
Grand Total 19,692 18,620 18,587 19,848 19,860 19,998 19,905 20,061 20,003 20,414 20,492 20,550 238,030
ATTACHMENT 2
NOTICE OF PUBLIC HEARING
REFUSE RATE ADJUSTMENT
JULY 5, 2016
NOTICE IS HEREBY GIVEN that pursuant to Article XIIID of the California Constitution, the City Council of the City of Azusa will hold a PUBLIC HEARING to
consider adjustments in rates for trash collection and recycling services effective for bills rendered on or after July 11, 2016. This notice is being mailed to the
owner of record of each identified parcel subject to trash rates. Said PUBLIC HEARING will be held at the regular meeting of the City Council of the City of
Azusa on MONDAY, JULY 5, 2016, at 7:30 P.M., or as soon as possible thereafter, in the Civic Auditorium, 213 E. Foothill Blvd., Azusa. The City Council
will be considering adoption of a trash collection and recycling rate schedule effective July 11, 2016, as set forth below for typical residential and commercial
services. Read below for more information about this adjustment.
Error! Not a valid link.
The bases and reasons for the proposed trash rate changes are set forth in a report available at the City Clerk’s office at 213 E. Foothill Boulevard in Azusa
which may be reviewed by any interested person. Proceeds from this rate adjustment will be used to pay Athens Services for trash collection and recycling
services. Recycling services include processing all waste collected in Azusa through a material recovery facility where all glass, plastics, metal and paper
products are removed and recycled. Other portions of the trash rate include City fees, such as 10% franchise fee, AB 939 or Recycling fee, billing fee, and
fee to make up for non-payments. These fees are used by the City to administer the trash hauling contract, comply with the California Integrated Waste
Management Act of 1989, and cover customer service and billing costs.
At the time of the public hearing, the City Council will hear and consider all protests and objections concerning the proposed trash rate adjustments. Upon
conclusion of the hearing, the City Council will consider, and may adopt, the proposed trash rate adjustments. If written protests against the proposed rate
adjustments and fee schedule are not presented by a majority of owners of the identified parcels upon which the rates and fee schedule are proposed to be
imposed, the City Council will be authorized to impose the rates and fee schedule.
Comments or protests to the proposed trash rate adjustments must be delivered in writing to the City Clerk, City of Azusa, 213 East Foothill Boulevard,
Azusa, CA 91702, prior to the public hearing on July 5, 2016. Written protests may also be submitted at the public hearing so long as they are received prior
to the conclusion of the public hearing. Please include your service address(es) or parcel number(s), your name and contact telephone number in your
written protest.
Details regarding the proposed trash rate adjustments are available at the Office of the City Clerk, 213 E. Foothill Boulevard, Azusa City Library, 729 N.
Dalton, and Azusa Light & Water, 729 N. Azusa Avenue, or on the City of Azusa’s website at www.ci.azusa.ca.us. Thank you.
ATTACHMENT 3
$21.16
$21.38
$22.87
$22.97
$23.00
$23.62
$25.44
$28.76
$28.79
$29.30
$29.72
$30.90
$32.06
$32.59
$- $5 $10 $15 $20 $25 $30 $35
Duarte
Walnut
Baldwin Park
Arcadia
La Verne
Azusa (Current Rate)
Azusa (Proposed Rate)
Glendora
Monrovia
Covina
West Covina
San Dimas
Claremont
Diamond Bar
Monthly Rate
Single Family Residential Rates Survey
$117.29
$123.50
$128.15
$131.35
$132.98
$143.25
$149.53
$163.35
$163.51
$167.94
$169.34
$178.48
$183.13
$- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200
Azusa (Current Rate)
Claremont
Azusa (Proposed Rate)
Walnut
Diamond Bar
La Verne
Duarte
San Dimas
Covina
Monrovia
Glendora
Baldwin Park
West Covina
Monthly Rate
Commercial Rates Survey (3 CY/1X per Week)
1
RESOLUTION NO. 2016-C52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AZUSA, CALIFORNIA, APPROVING THE TWENTIETH
AMENDMENT TO THE EXCLUSIVE FRANCHISE
AGREEMENT WITH ARAKELIAN ENTERPRISES TO AMEND
THE SERVICE RATES AND FEES FOR THE PERIOD OF JULY
19, 2016 THROUGH JUNE 30, 2017
WHEREAS, on October 2, 2000, the City Council of the City of Azusa, approved
an Exclusive Franchise Agreement with Arakelian Enterprises, Incorporated (Contractor), for
refuse collection and recycling services ("Original Agreement"); and
WHEREAS, Section 5 of the Original Agreement requires that service rates be
modified annually to account for cost of living changes and changes in disposal costs
("Adjustments"); and
WHEREAS, rates have been calculated pursuant to the terms and conditions of the
Original Agreement;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Azusa,
California, does find and declare that:
SECTION 1: Adoption of 20th Amendment. The attached 20th Amendment to the
Exclusive Franchise Agreement Between the City of Azusa and Arakelian
Enterprises, Inc. for Refuse Collection, Recycling and Disposal Services is
hereby approved. The rate schedule adopted as part of the Twentieth
Amendment shall supersede any rate schedule previously adopted.
SECTION 2: Effective Date. This Resolution shall become effective upon its adoption.
SECTION 3: Authorization. That the Mayor shall sign and the City Clerk shall
certify to the passage and adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 18th day of July, 2016.
___________________________________
Joseph Romero Rocha
Mayor
2
ATTEST:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2016-C52 was duly adopted
by the City Council of the City of Azusa at a regular meeting thereof, held on the 18th day of
July, 2016 by the following vote of Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
___________________________________
Jeffrey Lawrence Cornejo, Jr.,
City Clerk
APPROVED AS TO FORM:
___________________________________
City Attorney
Best Best & Krieger, LLP
3
AMENDED AND RESTATED FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND ARAKELIAN ENTERPRISES, INC.
FOR REFUSE COLLECTION, RECYCLING AND DISPOSAL SERVICES
AMENDMENT NO. 20
This Twentieth Amendment to the Exclusive Franchise Agreement is entered
into this 18 th day of July 201 6 by and between the City of Azusa, a municipal
corporation ("City") and Arakelian Enterprises, Inc., a California Corporation
("Contractor").
Effective July 1 9st, 2016 , the attached rate schedule shall replace Exhibit A of the
Existing Exclusive Franchise Agreement approved on October 2, 2000.
IN WITNESS WHEREOF, the parties have executed this Amendment No. 20 as
of the date first set out herein.
Date: ____________________________
Date: _______________________________
CITY OF AZUSA
A Municipal Corporation
Joseph Romero Rocha, Mayor
ARAKELIAN ENTERPRISES, INC.
d.b.a. ATHENS SERVICES
ATTEST:
Jeffrey Lawrence Cornejo, City Clerk
APPROVED AS TO FORM:
City Attorney
Best Best & Krieger, LLP
4
EXHIBIT A
TO FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND ARAKELLAN ENTERPRISES, INC.
MRF entire waste stream except green waste and clean inerts
FY 2016/17 Refuse Rates
Service Processing/ Service Franchise AB 939 Uncollectible Monthly Total
Disposal
Fee Fee Fee Fee +CS Charge Rate
Single Family
(Trash & Green) 10.53 10.84 2.41 0.75 0.91 $ 25.44
Multifamily Bin 8.88 9.41 2.03 0.67 0.89 $ 21.88
Commercial Bins
3 Cubic Yard
1 Day/Week 47.15 64.88 12.45 3.67 $ 128.15
2 Days/Week 94.31 73.43 18.63 7.35 $ 193.72
3 Days/Week 141.46 82.06 24.83 11.02 $ 259.37
4 Days/Week 188.61 90.54 31.01 14.68 $ 324.84
5 Days/Week 235.77 99.28 37.22 18.36 $ 390.63
6 Days/Week 282.92 164.16 49.69 22.03 $ 518.80
2 Cubic Yard
1 Day/Week 31.44 67.83 11.03 2.45 $ 112.75
2 Days/Week 62.87 81.33 16.02 4.91 $ 165.13
3 Days/Week 94.31 94.65 20.99 7.36 $ 217.31
4 Days/Week 125.74 108.96 26.08 9.81 $ 270.59
5 Days/Week 157.18 122.05 31.02 12.24 $ 322.49
1.5 Cubic Yard
1 Day/Week 23.58 52.12 8.41 1.83 $ 85.94
2 Days/Week 47.15 80.04 14.13 3.66 $ 144.98
3 Days/Week 70.73 107.22 19.77 5.49 $ 203.21
Saturday Service 47.15 64.88 12.45 3.67 $ 128.15
Locked
Lid
Bin Change
Out n/a 68.38 7.60 n/a $ 75.98
Ongoing
Service n/a 7.54 0.84 n/a $ 8.38
Temp Bins 10.89 102.60 12.61 0.84 $ 126.94
X-Tra
Dumps Same Day 10.89 42.15 5.89 0.84 $ 59.77
Different
Day 10.89 64.31 8.35 0.84 $ 84.39
Commercial Barrels 8.88 20.88 3.31 0.67 $ 33.74
Roll Offs w/1 ton 74.52 282.57 39.67 7.11 $ 403.87
Notes:
1 Uncollectible Accts Charge includes Customer Service (CS) Billing Charge of $0.76 for FY 2015/16