HomeMy WebLinkAboutE-12 Staff Report - 2019 Approval of Public Hearing Refuse Rate Adjustment Notification CONSENT ITEM
E-12
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: MAY 6, 2019
SUBJECT: AUTHORIZATION TO SCHEDULE AND NOTIFY PROPERTY OWNERS OF
PUBLIC HEARING ON JULY 15, 2019 FOR 2019 REFUSE AND ORGANICS RATE
ADJUSTMENT
BACKGROUND:
The City has 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 pass through 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., landfill cost, insurance). On July 16, 2018, the City
Council approved organics rate structure for commercial customers to comply with AB 1826 (Mandatory
Commercial Organics Recycling). Pursuant to Proposition 218, all refuse and organics rate adjustments
must be approved at a public hearing with a notice to the public 45 days in advance of the hearing. The
recommended action requests that the City Council set the annual refuse and organics rate adjustment
public hearing for the July 15, 2019 City Council meeting.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1) Set the annual refuse and organics rate adjustment public hearing for July 15, 2019; and
2) Direct Staff to mail a 45-day advanced notice of the public hearing to all property owners to
consider the annual refuse rate adjustment; which include rate for organic waste recycling
services.
ANALYSIS:
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 (based on the Franchise Agreement the
City has what is called, flow rights). 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.
2019 Authorization for Public Hearing Refuse and Organics Rate Adjustment
May 6, 2019
Page 2
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: customer service
charges (since the City bills residential customers directly). Each year refuse rates are 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,
Anaheim area and to account for increases in disposal costs. CPI increased by 3.15% from January 2018
to January 2019.
Pursuant to the City’s franchise agreement with Athens, disposal costs are passed through to the
ratepayers automatically. The cost of disposal at the Mid-Valley Landfill where the City’s waste is
disposed of is anticipated to increase from $31.26 to $32.49 per ton. There was also a significant increase
in green waste processing and diversion services fee beginning November 2018 from $25.89 to $47 per
ton due to the implementation of AB 1594 (Green Waste Diversion Bill). Per AB 1594, green materials
used as Alternative Daily Cover (ADC) will no longer be considered as diversion as of January 1, 2020.
Jurisdictions must have plans/programs to divert green materials from landfill or risk not being able to
meet its AB 939 diversion goal. The additional green waste processing cost was not included in the FY
2018-2019 rates; however, the higher cost is included in the FY 2019-2020 rates.
As approved by the City Council in 2016, an adjustment of 0.67% due to the new minimum wage law
(which was phased in) is applied to this adjustment period. In addition, starting with the FY 2015/16 rate
adjustment period, an incremental transportation cost 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 as well. Athens is not requesting any other rate
adjustments due to extraordinary increases in operating cost at this time.
In October 2014, Governor Brown signed AB 1826 (Mandatory Commercial Organics Recycling),
requiring businesses to recycle their organic waste on and after April 1, 2016, depending on the amount
they generate each week. Organic waste includes food waste, green waste, landscape and pruning waste,
nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste. Effective
January 1, 2019, all commercial customers (businesses and multi-family dwellings with 5 units or more)
that generate 4 cubic yards or more of commercial solid waste per week shall arrange for organic waste
recycling services. In order to comply with AB 1826, the City Council authorized Athens Services to
charge a monthly rate in implementing a commercial organic recycling program for businesses that are
required to implement an organic recycling program. These rates were approved effective July 1, 2018
and are adjusted by CPI percentage change (3.15%).
Per Resolution No. 2018-C48 adopted on July 16, 2018, automatic adjustments may be implemented by
the City beginning July 1, 2019, and each July 1 thereafter for a five-year period, without complying with
Proposition 218 procedures subject to a maximum of 5% annually. Given the increase in overall cost of
disposal and recycling, rates are expected to increase from 3.58% to 8.54% for residential and
commercial customers; therefore, a public hearing is required.
FISCAL IMPACT:
The fiscal impact of the proposed rate adjustment will vary by customer class: single family residential
rates will increase 6.78% or $1.76 per month; multi-family bin rates will increase 4.37% or $0.98 per
month; and commercial rates will increase 3.58% to 8.54% depending on the service level.
2019 Authorization for Public Hearing Refuse and Organics Rate Adjustment
May 6, 2019
Page 3
Prepared by: Reviewed and Approved:
Liza Sagun Sergio Gonzalez
Util. Comm. & Envt. Programs Specialist City Manager
Reviewed and Approved:
Manny Robledo
Director of Utilities
Attachment:
1) Draft Refuse & Organics Rate Adjustment Fiscal Year 2019-2020
NOTICE OF PUBLIC HEARING
REFUSE AND ORGANICS RATE ADJUSTMENT
JULY 15, 2019
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 and organics collection and recycling services effective for bills rendered on or after July 1, 2019. 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 15, 2019, 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 1, 2019, as set forth below for typical residential and
commercial services. Read below for more information about this adjustment.
TABLE 1
July-June July-June
2018-2019 2019-2020
SERVICES Current Proposed Change
Total Monthly Rate Total Monthly Rate % $
Residential Barrel Service $25.96 $27.72 6.78% $1.76
Multifamily Bin $22.37 $23.35 4.37% $0.98
Commercial Bins
Size - 3 Cubic Yards
1 Day/Week $132.19 $140.94 6.62% $8.75
2 Days/Week $196.93 $211.85 7.58% $14.92
3 Days/Week $261.75 $282.83 8.05% $21.08
4 Days/Week $326.39 $353.63 8.35% $27.24
5 Days/Week $391.33 $424.76 8.54% $33.43
6 Days/Week $523.51 $565.69 8.06% $42.19
Size - 2 Cubic Yards
1 Day/Week $117.58 $124.54 5.91% $6.95
2 Days/Week $170.10 $181.51 6.71% $11.42
3 Days/Week $222.36 $238.24 7.14% $15.88
4 Days/Week $275.84 $296.21 7.38% $20.37
5 Days/Week $327.83 $352.66 7.57% $24.83
Size - 1.5 Cubic Yards
1 Day/Week $89.67 $94.95 5.89% $5.28
2 Days/Week $150.35 $159.80 6.28% $9.45
3 Days/Week $210.15 $223.73 6.46% $13.58
Size - 30 Cubic Yards* $433.00 $448.52 3.58% $15.51
*Rate includes 1 Ton of Waste Processed at Material Recovery Facility (MRF)
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. The request for the proposed rate adjustment is based upon the City’s existing trash franchise agreement
with Athens Services, the City’s franchised trash hauler. Proceeds from this rate adjustment will be used to pay Athens Services for trash collection, recycling
and disposal 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 and
billing/administration fee. These fees are used by the City to administer the trash hauling contract, comply with the California Integrated Waste Managem ent
Act of 1989, and cover customer service and billing costs.
Mandatory Organic Waste Recycling Program for Commercial Customers
In October 2014, Governor Brown signed AB 1826, requiring businesses to recycle their organic waste on and after April 1, 2016, depending on the amount
they generate each week. Organic waste includes food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper
waste that is mixed in with food waste. Effective January 1, 2019, all commercial customers (businesses and multi-family dwellings with 5 units or more) that
generate 4 cubic yards or more of commercial solid waste per week shall arrange for organic waste recycling services.
Attachment 1
In order to implement the Organics Recycling Program in the City, Athens Services, the City’s franchised trash hauler, is offering organic recycling services to
businesses that are required to implement an organic recycling program under AB 1826, and may charge businesses that utilize such services for the cost of
those services. The City Council will be considering adoption of Athens Services proposed monthly organic waste recycling program rate schedule effective
July 1, 2019, as set forth below for commercial customers in Table 2:
TABLE 2
July-June July-June
2018-2019 2019-2020
SERVICES
Current Proposed Change
Total Monthly Rate Total Monthly Rate % $
Size - 64 Gallon Barrel
One / Week Primary $116.91 $120.57 3.15% $3.66
Addt'l Barrels $102.33
Two / Week Primary $203.54 $209.93 3.15% $6.39
Addt'l Barrels $178.63
Three / Week Primary $290.18 $299.31 3.15% $9.13
Addt'l Barrels $254.95
Four / Week Primary $376.83 $388.68 3.15% $11.85
Addt'l Barrels $331.25
Five / Week Primary $463.47 $478.06 3.15% $14.59
Addt'l Barrels $407.57
Six / Week Primary $550.12 $567.43 3.15% $17.31
Addt'l Barrels $550.12 $420.85
At the time of the public hearing, the City Council will hear and consider all protests and objections concerning the proposed trash and organic waste
recycling rate schedule, including all written protests submitted against the proposed rate adjustments. Upon conclusion of the hearing, the City Council will
consider, and may adopt, the proposed trash and organic waste recycling rates, if written protests against the proposed rates 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. If adopted, the rates shall
become effective retroactive to July 1, 2019.
Any record owner of a parcel upon which the trash rates are proposed may submit a written protest to the proposed rate adjustments. To oppose the
proposed rate adjustments, you must submit a written protest, even if you plan to attend the public hearing. Your written protest to the proposed trash and
organic waste recycling rates must be received (not postmarked) by the City Clerk, City of Azusa, 213 East Foothill Boulevard, Azusa, CA 91702, prior to the
close of the public hearing on July 15, 2019. Written protests may also be submitted at the public hearing so long as they are received prior to the conclusion
of the public hearing. Oral, telephonic and e-mail protests will not be accepted. You must sign the protest and include: 1) your name, 2) your street address,
and 3) your trash service account number. Please identify on the front of the envelope that the enclosed letter is for the “2019 Trash & Organics Rate
Adjustment Public Hearing”. Only one written protest will be counted per identified parcel.
Details regarding the proposed refuse and organic waste recycling rates 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.azusaca.gov. Thank you.
City of Azusa
Refuse Rate Adjustment Fiscal Year 2019-20
Rate Sheet
Jul-Jun
Year 2018-2019
Service Processing/
Single Family
(Trash & Green) 10.14
Multifamily Bin 8.60
Commercial Bins
3 Cubic Yard
1 Day/Week 45.72
2 Days/Week 91.45
3 Days/Week 137.17
4 Days/Week 182.90
5 Days/Week 228.62
6 Days/Week 274.35
2 Cubic Yard
1 Day/Week 30.48
2 Days/Week 60.97
3 Days/Week 91.45
4 Days/Week 121.93
5 Days/Week 152.42
1.5 Cubic Yard
1 Day/Week 22.86
2 Days/Week 45.72
3 Days/Week 68.59
Saturday Service 45.72
Locked Lid Bin Change Out n/a
Ongoing Service n/a
Temp Bins 10.56
X-Tra Dumps Same Day 10.56
Different Day 10.56
Commercial Barrels 8.60
Roll Offs w/ 1 ton•78.63
*MRF Processed
Jul-Jun
2019-2020
Now
Processing/
Disposal Fee
11.34
9.10
50.92
101.84
152.76
203.68
254.60
305.52
33.95
67.89
101.84
135.79
169.74
25.46
50.92
76.38
50.92
n/a
n/a
11.76
11.76
11.76
9.10
80.95
Jul-Jun Jul-Jun Jul-Jun
2018-2019 2019-2020 2018-2019
New
Service Service Franchise
Fee Fee Fee
11.69 12.14 2.49
10.15 10.54 2.08
69.95 72.62 12.85
79.18 82.20 18.95
88.48 91.86 25.08
97.63 101.36 31.18
107.05 111.14 37.30
177.00 183.76 50.13
73.14 75.93 11.51
87.70 91.05 16.52
102.05 105.95 21.50
117.49 121.98 26.61
131.60 136.63 31.57
56.20 58.35 8.78
86.30 89.60 14.67
115.61 120.03 20.46
69.95 72.62 12.85
73.73 76.55 8.19
8.13 8.44 0.90
110.63 114.86 13.46
45.45 47.19 6.22
69.34 71.99 8.88
22.51 23.37 3.46
304.68 316.32 42.58
Jul-Jun Jul-Jun Jul -Jun Jul-Jun Jul-Jun Jul-Jun Jul -Jun
2019-2020 2018-2019 2019-2020 2018-2019 2019-2020 2018-2019 2019-2020 Rate Change
New New CS Chargej CS Charge New
Franchise AB 939 AB939 Total Total % $
Fee Fee Fee Rate Rate Change Change
2.61 0.75 0.75 0.89 0.88 25.96 27.72 6.78% $ 1.76
2.18 0.67 0.67 0.87 0.86 22.37 23.35 4.37% $ 0.98
13.73 3.67 3.67 132.19 140.94 6.62% $ 8.75
20.46 7.35 7.35 196.93 211.85 7.58% $14.92
27.19 11.02 11.02 261.75 282.83 8.05% $21.08
33.91 14.68 14.68 326.39 353.63 8.35% $27.24
40.66 18.36 18.36 391.33 424.76 8.54% $33.43
54.38 22.03 22.03 523.51 565.69 8.06% $42.19
12.21 2.45 2.45 117.58 124.54 5.91% $ 6.95
17.66 4.91 4.91 170.10 181.51 6.71% $11.42
23.09 7.36 7.36 222.36 238.24 7.14% $15.88
28.63 9.81 9.81 275.84 296.21 7.38% $20.37
34.05 12.24 12.24 327.83 352.66 7.57% $24.83
9.31 1.83 1.83 89.67 94.95 5.89% $ 5.28
15.62 3.66 3.66 150.35 159.80 6.28% $ 9.45
21.83 5.49 5.49 210.15 223.73 6.46% $13.58
13.73 3.67 3.67 132.19 140.94 6.62% $ 8.75
8.51 n/a n/a 81.92 85.06 3.83% $ 3.14
0.94 n/a n/a 9.03 9.38 3.88% $ 0.35
14.07 0.84 0.84 135.49 141.53 4.46% $ 6.04
6.55 0.84 0.84 63.07 66.34 5.18% $ 3.27
9.31 0.84 0.84 89.62 93.90 4.78% $ 4.28
3.61 0.67 0.67 35.24 36.75 4.28% $ 1.51
44.14 7.11 7.11 433.00 448.52 3.58% $15.51
DRAFT
Days/week Container 64 Gallon Barrel Franchise
Fee AB 939 Fee Total Rate
One / Week Primary Barrel $107.83 $11.98 $0.75 $120.56
Addt'l Barrels $91.42 $10.16 $0.75 $102.33
Two / Week Primary Barrel $188.26 $20.92 $0.75 $209.93
Addt'l Barrels $160.09 $17.79 $0.75 $178.63
Three / Week Primary Barrel $268.70 $29.86 $0.75 $299.31
Addt'l Barrels $228.78 $25.42 $0.75 $254.95
Four / Week Primary Barrel $349.14 $38.79 $0.75 $388.68
Addt'l Barrels $297.45 $33.05 $0.75 $331.25
Five / Week Primary Barrel $429.57 $47.73 $0.75 $478.05
Addt'l Barrels $366.14 $40.68 $0.75 $407.57
Six / Week Primary Barrel $510.01 $56.67 $0.75 $567.43
Addt'l Barrels $378.09 $42.01 $0.75 $420.85
Compactor Haul $351.23 $39.03 $7.11 $397.37
Disposal / Ton $103.15 $11.46 $0.00 $114.61
Azusa Organic Waste - Unit Cost - Effective July 1, 2019