Loading...
HomeMy WebLinkAboutD-6 - Refuse Rate AdjustmentSCHEDULED ITEM D-6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: LOUIE F. LACASELLA, MANAGEMENT ANALYST DATE: MAY 16, 2016 SUBJECT: AUTHORIZATION TO SCHEDULE AND NOTIFY PROPERTY OWNERS OF PUBLIC HEARING FOR REFUSE RATE ADJUSTMENT ON JULY 5, 2016 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 effective July 1st to account for cost of living changes and changes in disposal costs. In addition, the franchised hauler may request a rate adjustment as a result of extraordinary changes 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 action would set a public hearing for July 5, 2016 and direct Staff to mail notices of public hearing to consider the annual refuse rate adjustment. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1)Set the public hearing for July 5, 2016; and 2)Direct Staff to mail a 45-day advanced notice of public hearing to consider the annual refuse rate adjustment to be effective July 11, 2016. DISCUSSION: The City’s waste is collected by Athens Services and taken to Athens’ Material Recovery Facility (MRF) in the city of Industry 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 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. APPROVED COUNCIL MEETING 5/16/2016 Fiscal Year 2016-2017 Refuse Rate Adjustment May 16, 2016 Page 2 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 the 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: Fiscal Year 2016-2017 Refuse Rate Adjustment May 16, 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 Multifamily 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). The proposed rate adjustments are slated to go into effect July 11, 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 remain very competitive. The proposed Azusa Single Family Residential Rate is 2.62 percent below the average rate. Fiscal Year 2016-2017 Refuse Rate Adjustment May 16, 2016 Page 4 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 will not occur until after July 1st. If the proposed rates are approved, Athens has agreed to delay implementation until July 11th and will absorb the differential cost of the current rates and proposed FY 2016/17 rates for the period July 1 through July 10. FISCAL IMPACT: The cost of printing and mailing the public notices is about $4,500 and such cost will be paid from the AB 939 Fund. Prepared by: Fiscal Impact Reviewed by: Louie F. Lacasella Talika Johnson Management Analyst Interim Finance Director Reviewed and Approved: Troy L. Butzlaff, ICMA-CM City Manager Attachments: 1) Draft Refuse Rate Adjustment Fiscal Year 2016-2017 2) Extraordinary Cost Request Letter from Athens Services 3) Notice of Public Hearing 4) Rate Survey City of Azusa Refuse Rate Adjustment Fiscal Year 2016-17 Rate Sheet Jul - Jun Jul - Jun Jul - Jun Jul - Jun Jun - Jul Jul - Jun Jul - Jun Jul - Jun Jun - Jul Jul - Jun Jun - Jul Jul - Jun Year 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 New New New New Uncollectible Uncollectible New Service Processing/Processing/Service Service Franchise Franchise AB 939 AB 939 Accounts Accounts Total Total %$ 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. 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. 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 Multifamily 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) ATTACHMENT 3 $21.16 $21.38 $22.87 $22.97 $23.00 $23.62 $23.80 $25.44 $27.05 $27.77 $27.93 $30.90 $32.06 $32.59 $- $5 $10 $15 $20 $25 $30 $35 Duarte Walnut Baldwin Park Arcadia La Verne Azusa (Current Rate) Monrovia Azusa (Proposed Rate) Covina West Covina Glendora San Dimas Claremont Diamond Bar Monthly Rate Single Family Residential Rates Survey ATTACHMENT 4 $117.29 $123.50 $128.15 $131.35 $132.98 $136.34 $143.25 $149.53 $152.32 $163.35 $164.47 $171.08 $178.48 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Azusa (Current Rate) Claremont Azusa (Proposed Rate) Walnut Diamond Bar Monrovia La Verne Duarte Covina San Dimas Glendora West Covina Baldwin Park Monthly Rate Commercial Rates Survey (3 CY/1X per Week)