HomeMy WebLinkAboutD-4 Staff Report - Public Hearing Solid Waste Rates Increase and Contract AmendmentPUBLIC HEARING/SCHEDULED ITEM
D-4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: JUNE 20, 2022
SUBJECT: PUBLIC HEARING REGARDING PROPOSED INCREASES TO SOLID
WASTE RATES EFFECTIVE JULY 1, 2022 AND APPROVAL OF
AMENDMENT TWENTY-EIGHTH TO THE AMENDED AND RESTATED
FRANCHISE AGREEMENT WITH ARAKELIAN ENTERPRISES, INC. (DBA
ATHENS SERVICES)
BACKGROUND:
The City has an Exclusive Franchise Agreement with Arakelian Enterprises, Inc. dba Athens
Services (Franchised Hauler) for refuse collection and recycling services. The City Council
approved the twenty-sixth amendment to the agreement on November 1, 2021 to allow for
significant changes to comply with changes in state law and extra ordinary cost adjustment allowed
in the agreement. The proposed rate changes are necessary for Athens Services to provide
mandatory organic waste collection services pursuant to regulations implementing Senate Bill
1383. 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
actions consist of opening the Public Hearing, receiving public testimony, closing the Public
Hearing and adopting Resolution No. 2022-C47 approving the annual refuse and organics rate
effective July 1, 2022. The Public Hearing Notice was mailed on April 29, 2022 and advertised in
the local newspaper on June 9, 2022.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1) Open the Public Hearing, receive public testimony, and close the Public Hearing;
2)Adopt Resolution No. 2022-C47 approving the annual refuse collection and organic waste
recycling rate adjustment for Arakelian Enterprises, Inc. dba Athens Services effective July 1,
2022 and if approved to be adjusted by Consumer Price Index (CPI) beginning July 1, 2022
and every July 1st thereafter for a five-year period, through and including adjustments on or
after July 1, 2026; and
APPROVED
CITY COUNCIL
6/20/2022
Public Hearing Regarding Proposed Increases to Solid Waste Rates & Contract Amendment
June 20, 2022
Page 2
3) Approve the Twenty-Eighth Amendment to the Amended and Restated Franchise Agreement
with Arakelian Enterprises, Inc. (dba Athens Services) for refuse collection, recycling and
disposal services in a form acceptable to the City Attorney.
ANALYSIS:
Proposed Increase to Solid Waste Rates
The City of Azusa has an Exclusive Franchise Agreement (Agreement) with Arakelian Enterprises,
Inc. dba Athens Services (Franchised Hauler) for refuse collection and recycling services. Athens
bills the customers directly for services. The rate structure for monthly solid waste services are for
three customer classes: (i) residential, (ii) multi-family, and (iii) commercial. Multi-family
customers with less than 5 units fall under residential rates; while 5 units or more are under
commercial rates. The rates for solid waste services for each customer class is determined on the
basis of (i) the size of the container serving the property, (ii) the materials accepted in the container
(e.g. trash, recyclables, organic waste) serving the property, and (iii) frequency of pickups per week.
The proposed rate increases for solid waste services are necessary for Athens Services to provide
mandatory organic waste collection services pursuant to regulations implementing Senate Bill
1383. Residents and businesses must separate organic waste (such as yard waste and food waste)
from other trash to be managed at a facility other than the landfill. To accomplish this, all property
owners, residents, and businesses, will be required to enroll automatically in collection services for
trash, recyclables, and organic waste. Recycling services include processing of recyclables and
organic wastes collected from all customers at state-regulated facilities.
Other portions of the solid waste services rate include City fees to administer the waste management
contract; provide inspections, enforcement, and oversight; maintain infrastructure, provide
education and outreach, and comply with state mandates relating to solid waste services.
To cover the costs needed to provide a compliant commercial and multi-family organics program,
Athens Services will implement a 26.9% rate increase effective July 1, 2022 for organic waste
collection services for commercial and multi-family properties with 5 units or more to comply with
SB 1383. In order to minimize the impact of this increase, Athens Services will provide a credit to
multi-family and commercial customers to cover part of the organics barrel service as shown in
table below (which will be applied to the organics rates listed in Attachment 2 as a separate line
item). As of July 1, 2024, customers will no longer receive a credit for organic waste collection
services, and will pay the full amount listed in rate sheet in Attachment 2.
Year Credit
7/2022-6/2023 50% (customer will be paying 50% of organic rate)
7/2023-6/2024 25% (customer will be paying 75% of organic rate)
7/2024-6/2025 0% (customer will be paying 100% of organic rate)
Public Hearing Regarding Proposed Increases to Solid Waste Rates & Contract Amendment
June 20, 2022
Page 3
For the fiscal year beginning July 1, 2022, and annually thereafter on July 1 through and including
July 1, 2026, the maximum rate provided in Table 1 shall be automatically adjusted annually based
upon the annual percentage change from January to January) in the Consumer Price Index (CPI)
for Trash and Garbage Collection (CUUR000SEHG02), US City Average (not seasonally
adjusted), as determined by the United States Department of Labor Statistics. The adjustment factor
shall be the percentage change in CPI plus one percent, with a floor of 3%, calculation; provided
however, that the maximum rates shall not be increased by more than 10%.
The proposed rates effective July 1, 2022 are summarized in Attachment 1.
Amendment Twenty-Eighth to the Amended and Restated Franchise Agreement
On October 2, 2000, the City Council of the City of Azusa approved the Amended and Restated
Franchise Agreement for Refuse Collection, Recycling, and Disposal Services between the City
and Contractor, which was modified in the twenty-sixth amendment to allow for significant changes
to comply with changes in state law and extra ordinary cost adjustment allowed in the agreement.
In order to maintain the consistency of approved service rates and how those rates are calculated
and enhance service offerings, administrative corrections to the agreement are required to align the
agreement to the agreed upon and City-approved terms arising from the twenty-sixth amendment
to the agreement approved November 1, 2021.
• Senior Discount – for qualified customers 62 years or older and household primary account
holder will receive 10% trash rate discount applied to the base service of three (3) 32-gallon
barrels.
• Roll Out Services for Disabled Customers – for qualified disabled customers who do not
reside with an able-bodied individual upon providing a note from physician indicating the
service is needed or a copy of handicap placard issued by the Department of Motor Vehicles.
• Temporary Construction Debris Collection – Athens to provide additional temporary
service for the collection of construction debris.
• CPI Anniversary Update – change the CPI date for the prior 12-month period from March
of the current year to March of the prior year to January to January to provide enough time
to calculate rate adjustments effective July 1, and comply with Proposition 218 notification
requirements.
FISCAL IMPACT:
The fiscal impact of the proposed rate adjustment will vary by customer class: residential cart
service rate will be $38.01 or 5.17% increase; and multi-family and commercial bin rates will
increase 26.9% but will receive 50% credit for organics cart service.
Public Hearing Regarding Proposed Increases to Solid Waste Rates & Contract Amendment
June 20, 2022
Page 4
Prepared: Reviewed and Approved:
Liza Sagun Tikan Singh
Environmental Programs Specialist General Manager
Reviewed and Approved: Reviewed and Approved:
Marco Martinez Sergio Gonzalez
Best Best & Krieger LLP City Manager
Attachments:
1) Resolution No. 2022-C47 Solid Waste Rates Effective July 1, 2022
2) Public Hearing Notice Proposed Solid Waste Rates Effective July 1, 2022
3) Twenty-eighth Amendment to the Athens Amended and Restated Franchise Agreement
1
RESOLUTION NO. 2022-C47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, APPROVING THE TWENTY-NINTH AMENDMENT
TO THE AMENDED AND RESTATED FRANCHISE AGREEMENT
WITH ARAKELIAN ENTERPRISES, INCORPORATED TO AMEND
THE REFUSE COLLECTION, RECYCLING AND DISPOSAL
SERVICES RATES EFFECTIVE JULY 1, 2022 THROUGH JUNE 30, 2023
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, on November 1, 2021, the City Council of the City of Azusa, approved
the 26th Amendment to the Amended and Restated Franchise Agreement with Contractor for
refuse collection, recycling and disposal services ("Amended Agreement"); and
WHEREAS, Section 5.0(B) of the Amended Agreement requires that the refuse
collection, recycling and disposal services rates be modified annually to account for the cost
of living changes, disposal costs, and other adjustments due to extraordinary increases in
operating costs ("Adjustments") on July 1 of each year; and
WHEREAS, refuse rate adjustments have been calculated pursuant to the terms and
conditions of the Amended Agreement; and
WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires
CalRecycle to develop regulations to reduce organics in landfills as a source of methane. The
regulations place requirements on multiple entities including cities, residential households,
commercial businesses and business owners, commercial edible food generators, haulers, self-
haulers, food recovery organizations, and food recovery services to support achievement of
statewide organic waste disposal reduction targets; and
WHEREAS, the City is required by state law to implement an organic waste recycling
program for residential and commercial customers that are required by SB 1383 to implement
organics waste recycling; and
WHEREAS, in order to implement the organics recycling program in the City, Athens
Services, the City’s franchised trash hauler, is offering organics recycling services to residential
and commercial businesses that are required to implement an organic recycling program under
SB 1383, and charge these customers that utilize such services for the cost of those services; and
WHEREAS, the Monthly Organic Waste Recycling Rates attached herewith will be adopted and
applicable all residential and commercial customers required to comply with SB 1383 effective
July 1, 2022 and if approved the new rates shall be automatically adjusted annually based upon
the annual percentage change from January to January) in the Consumer Price Index (CPI) for
Trash and Garbage Collection (CUUR000SEHG02), US City Average (not seasonally
adjusted), as determined by the United States Department of Labor Statistics.
ATTACHMENT 1
2
WHEREAS, the City is proposing automatic rate adjustment beginning July 1, 2022, and
each July 1 thereafter for a five-year period, through and including adjustments effective on or
after July 1, 2026, the trash rates may be adjusted annually, without a further public hearing,
according to the percentage change in CPI plus one percent, with a floor of 3%, calculation;
provided however, that the maximum rates shall not be increased by more than 10%; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Azusa,
California, does find and declare that:
SECTION 1: Adoption of 29th Amendment. The attached 29th Amendment to the
Amended and Restated Franchise Agreement Between the City of Azusa
and Arakelian Enterprises, Inc. for Refuse Collection, Recycling and
Disposal Services (Exhibit A) is hereby approved. The rate schedule
adopted as part of the twenty-ninth Amendment shall supersede any
rate schedule previously adopted.
SECTION 2: Effective Date. This Resolution shall become effective upon its adoption.
SECTION 3: Adoption of Automatic Rate Adjustment. If approved, beginning July 1,
2022, and each July 1 thereafter for a five-year period, through and
including adjustments effective on or after July 1, 2026, the trash rates may
be adjusted annually, without a further public hearing, according to the
percentage change in CPI plus one percent, with a floor of 3%, calculation;
provided however, that the maximum rates shall not be increased by more
than 10%. If a rate adjustment should exceed this amount in any single
year, another public hearing will be held to consider that proposed rate
adjustment.
SECTION 4: 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 20th day of June, 2022.
___________________________________
Robert Gonzales
Mayor
ATTEST:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
3
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2022-C47 was duly adopted
by the City Council of the City of Azusa at a regular meeting thereof, held on the 20th day of
June, 2022 by the following vote of Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
___________________________________
Best Best & Krieger, LLP
City Attorney
4
AMENDED AND RESTATED FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND ARAKELIAN ENTERPRISES, INC.
FOR REFUSE COLLECTION, RECYCLING AND DISPOSAL SERVICES
AMENDMENT NO. 2 9
This twenty-ninth Amendment to the Amended and Restatated Franchise
Agreement is entered into this 20th day of June 202 2 by and between the City of
Azusa, a municipal corporation ("City") and Arakelian Enterprises, Inc., a
California Corporation ("Contractor").
Effective J uly 1st, 2022 , the attached rate schedule shall replace Exhibit A of the
Amended and Restated Franchise Agreement approved on November 1, 2021.
IN WITNESS WHEREOF, the parties have executed this agreement as of the
date first set out herein.
Date:
____________________________
Date: _______________________________
CITY OF AZUSA
A Municipal Corporation
Robert Gonzales, 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
5
EXHIBIT A
TO FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND ARAKELLAN ENTERPRISES, INC.
July 1, 2022 Refuse and Organics Recycling Rates
6
7
NOTICE OF PUBLIC HEARING
REGARDING PROPOSED INCREASES TO
SOLID WASTE RATES
NOTICE IS HEREBY GIVEN that the City Council of the City of Azusa (“City”) will hold a PUBLIC HEARING to consider adopting
increases to the rates for collection and handling of trash, recycling, and organic waste services within the City (collectively, “Solid
Waste Services”). This notice is being mailed to the owner of record of each identified parcel or customers responsible for paying
for Solid Waste Services. Said PUBLIC HEARING will be held at the regular City Council meeting on MONDAY, JUNE 20, 2022, at
7:30 P.M., or as soon as possible thereafter, in the Civic Auditorium,213 E. Foothill Boulevard, Azusa, CA 91702, to consider all
oral testimony and written protests to, and the adoption of the proposed rate increases. If the City Council decides to conduct the
hearing remotely in the interest of public health and safety pursuant to AB 361 (Chapter 165, Statutes of 2021), the information will
be posted on the City’s website as soon as possible, and will also be included in the published agenda for the June 20, 2022 City
Council meeting.
The proposed maximum rate increases to Solid Waste
Service by are set forth in Table 1 for typical residential and
commercial Solid Waste Services and Table 2 for Optional
Additional Solid Waste Services. If approved by the City
Council, the rates specified in Tables 1 and 2 will take effect
beginning July 1, 2022, and will be increased each July 1
thereafter, through and including July 1, 2026.
Proposed Rate Increases
Mandatory Organics Recycling Program for Residential and Commercial Customers
Athens Services provides Solid Waste Services within the City pursuant to an exclusive franchise agreement. Athens bills the
customers directly for the services. The rate structure for monthly Solid Waste Services are for three customer classes: (i) residential,
(ii) multi-family and (iii) commercial. The rates for Solid Waste Services for each customer class is determined on the basis of (i) the
size of the container serving the property, (ii) the materials accepted in the container (e.g., trash, recyclables, or organic waste) serving
the property, and (iii) the frequency of pickups per week. The rate structure is comprised of service fees and material tipping fees.
The proposed rate increases for Solid Waste Services are necessary for Athens Services to provide mandatory organic waste
collection services pursuant to regulations implementing Senate Bill 1383 (Chapter 395. Statutes of 2016). Residents and
businesses must separate organic waste (such as yard waste and food waste) from other trash to be managed at a facility other
than the landfill. To accomplish this, all property owners, residents and businesses, will be required to enroll automatically in
collection services for trash, recyclables, and
organic waste. Recycling services include
processing of recyclables and organic wastes
collected from all customers at state-regulated
facilities. Other portions of the Solid Waste
Services rate include City fees for the City to
administer the waste management contract;
provide inspections, enforcement, and oversight;
maintaininfrastructure, provide education and
outreach, and comply with state-mandates
relating to Solid Waste Services.
To cover the costs needed to provide a compliant
commercial and multi-family organics program,
Athens Services will implement a 26.9% rate i
ncrease effective July 1, 2022 for organic waste
collection services for commercial and multi-
family properties to comply with SB 1383. In
order to minimize the impact of this increase,
Athens will provide a credit to multi-family and
commercial customers to cover part of the
organics barrel service as shown in Table 3
(which will be applied to the organics rates listed
in Table 1 as a separate line item). As of July 1,
2024, customers will no longer receive a credit
for organic waste collection services, and will pay
the full amount listed in the rate sheet in Table 1.
Rate Adjustment Methodology
For the fiscal year beginning July 1, 2022, and
Year Credit
7/2022-6/2023 50% (customer will be paying 50% of organic rate)
7/2023-6/2024 25% (customer will be paying 75% of organic rate)
7/2024-6/2025 0% (customer will be paying 100% of organic rate)
Table 3: Organics Fee Credits
Optional Additional Services Current
Monthly Rate
Proposed
Monthly Rate
20.82)nosaer yna( tnemyaP denilceD :stnuoccA llA $ 29.50$
06.5)eef muminim ,htnom rep ecnalab eud tsap fo %5.1( seeF etaL :stnuoccA llA $ 5.90$
22.93)setunim 51 fo yaled hcae( emiT yb-dnatS :stnuoccA llA $ 41.30$
20.82ecivreS emuseR ro/dna ecivreS potS :stnuoccA llA $ 29.50$
33.301)strap gnidulcxe ,ruoh rep( riapeR reniatnoC :stnuoccA llA $ 108.79$
20.82noitcelloC metI ykluB deludehcS no nuR-daeD ro metI tsriF - pukciP metI ykluB :stnuoccA niB tnenamreP $ 29.50$
18.61metI tsriF retfa metI ykluB lanoitiddA hcaE - pukciP metI ykluB :stnuoccA niB tnenamreP $ 17.70$
44.412sdiL lateM htiw egnahcxE niB :stnuoccA niB tnenamreP $ 225.77$
87.723)dray cibuc rep( noitacirbaF niB motsuC :stnuoccA niB tnenamreP $ 345.10$
63.95)htnom rep( latneR niB gnippiT ro latneR niB llaC-nO :stnuoccA niB tnenamreP $ 62.49$
34.88tuO-hsaW ,lavomeR ,egnahcxE eziS ,egnahcxE ,yrevileD :stnuoccA niB yraropmeT & tnenamreP $ 93.11$
42.76thgieW ssecxE ,etsaW ssecxE ,kcaB-oG ,nuR-daeD :stnuoccA niB yraropmeT & tnenamreP $ 70.80$
00.008niB denruB - egnahcxE niB :stnuoccA niB yraropmeT & tnenamreP $ 842.28$
27.6)ycneuqerf x nib rep( ecivreS tuocS ro tuO-hsuP :stnuoccA niB yraropmeT & tnenamreP $ 7.08$
87.72)erusolcne rep( pU-naelC rettiL erusuolcnE niB :stnuoccA niB yraropmeT & tnenamreP $ 29.24$
33.38)muminim ruoh 1 ,ruoh rep( gnihsaW erusserP erusuolcnE niB :stnuoccA niB yraropmeT & tnenamreP $ 87.73$
87.723)latner syad 7 sedulcni - tfil rep( niB D&C draY cibuC 3 :stnuoccA niB yraropmeT $ 345.10$
06.5)syad 7 ni pmud on - yad rep( egarrumeD :stnuoccA niB yraropmeT $ 5.90$
00.001)nelots ,egamad remotsuc( tnemecalpeR traC :stnuoccA traC tnenamreP $ 105.29$
36.42tuO-hsaW ,nI gnirB ,egnahcxE eziS ,egnahcxE ,yrevileD :stnuoccA traC tnenamreP $ 25.93$
48.42pU-kciP artxE ,thgieW ssecxE ,etsaW ssecxE ,kcaB-oG ,nuR-daeD :stnuoccA traC tnenamreP $ 26.16$
22.22)htnom rep( ecivreS tuO-lloR :stnuoccA traC tnenamreP $ 23.40$
22.22)strac eerht sedulcni( ecivreS tuO-hsaW traC :stnuoccA traC tnenamreP $ 23.40$
65.5)strac eerht revo trac hcae( ecivreS tuO-hsaW traC :stnuoccA traC tnenamreP $ 5.84$
00.011 )snot 01 gnideecxe daol hcae rof segrahc lasopsid ot noitidda ni( thgiewrevO :stnuoccA ffO-lloR $ 115.81$
77.701etidepxE yaD-emaS ,noitacoleR ,kcaB-oG ,nuR-daeD ,nI-gnirB ,yrevileD :stnuoccA ffO-lloR $ 113.47$
72.75)htnom rep( latneR diL poT-lloR :stnuoccA ffO-lloR $ 60.29$
07.811)htnom rep( latneR xoB egarotS ro xoB poT-nepO :stnuoccA ffO-lloR $ 124.98$
71.435)htnom rep( latneR rotcapmoC :stnuoccA ffO-lloR $ 562.39$
33.34reniL citsalP :stnuoccA ffO-lloR $ 45.62$
00.05noitcurtseD fo etacifitreC :stnuoccA ffO-lloR $ 52.64$
98.841)rotcartnocbus yb dellib sruoh lautca rof ruoh rep( ecivreS "rehcnuaL tekcoR" :stnuoccA ffO-lloR $ 156.76$
44.31)syad 03 ni sluah on - yad rep( sreniatnoC denwO-reluaH no egarrumeD :stnuoccA ffO-lloR $ 14.16$
16.912tuO-hsaW rotcapmoC :stnuoccA ffO-lloR $ 231.21$
00.05esahP noitatnemelpmI margorP gniruD esneffO tsriF - noitanimatnoC reniatnoC cinagrO :stnuoccA llA $ 52.64$
All Accounts: Organic Container Contamination - Second Offense During Program Implementation Phase 100.00$ 105.29$
00.052esahP noitatnemelpmI margorP gniruD esneffO drihT - noitanimatnoC reniatnoC cinagrO :stnuoccA llA $ 263.21$
00.001doireP tnemecrofnE margorP gniruD esneffO tsriF - noitanimatnoC reniatnoC cinagrO :stnuoccA llA $ 105.29$
00.002doireP tnemecrofnE margorP gniruD esneffO dnoceS - noitanimatnoC reniatnoC cinagrO :stnuoccA llA $ 210.57$
00.005doireP tnemecrofnE margorP gniruD esneffO drihT - noitanimatnoC reniatnoC cinagrO :stnuoccA llA $ 526.42$
Note: All rates are "per occurrence" - unless noted otherwise.
Azusa Optional Additional Service Rates - Effective July 1, 2022 through June 30, 2023TABLE 2. OPTIONAL ADDITIONAL SERVICES
EFFECTIVE JULY 1, 2022
213 E. Foothill BoulevardAzusa, CA 91702 www.AzusaCA.gov PRESORTEDSTANDARDUS POSTAGEPAIDONTARIO, CAPERMIT NO. 574
Attachment 2
annuallythereafter on July 1 through and including July 1, 2026, the maximum rates provided in Table 1 shall be automatically
adjusted annually based upon the annual percentage change January to January) in the Consumer Price Index (CPI) for Trash
and Garbage Collection (CUUR0000SEHG02), U.S. City Average (not seasonally adjusted),as determined by the United States
Department of Labor Statistics. The adjustment factor shall be the percentage change in CPI plus one percent, with a floor of 3%, calculation;
provided, however, that maximum service rates shall not be
increased by more than 10% in any fiscal year.
How to Protest
Any record of owner of a property subject to proposed increases
to the rates for Solid Waste Services and any tenant directly
responsible for the payment of Solid Waste Services charges
may submit a written protest to the proposed rate increases;
provided, however, only one protest will be counted per identified
parcel. Any written protest must:
(1) state that the identified property owner or tenant is in
opposition to the proposed rate increases;
(2) provide the location of the identified parcel (by assessor’s
parcel number or street address) and if available, please
provide the Athens account number; and
(3) include the name and signature of the property owner or
tenant submitting the protest.
If the person submitting the written protest is the owner of
record but was not shown on Los Angeles County’s last equalized
assessment roll as the property owner, that person must provide
written evidence that the person is the property owner. Written
protests may be submitted by mail or in person, and must be
received (not postmarked) by the City Clerk’s Office at 213
East Foothill Boulevard, Azusa, CA 91702, prior to the close of
the public comment portion of the Public Hearing on June 20,
2022. Oral, telephonic and e-mail protests will not be accepted.
Please identify on the front of the envelope for any protest,
“2022 Public Hearing on Solid Waste Rate Increases.”
The City Council will consider all written protests and hear and
consider all oral comments to the proposed rate increases
for Solid Waste Services and the annual rate adjustment at
the Public Hearing. Oral comments at the Public Hearing will
not qualify as formal protests unless accompanied by a written
protest. Upon the conclusion of the Public Hearing, the
City Council will consider adoption of the rate increases to
the Solid Waste Services and the annual rate adjustment as
described herein. If written protests against the proposed Solid
Waste Services and annual rate adjustment are not presented
by a majority of the property owners of the identified parcels
upon which the rates are proposed to be imposed and tenants
directly responsible for the payment of the Solid Waste
Services, the City Council will be authorized to impose the
Solid Waste Services rates and annual rate adjustment as
outlined above. If adopted, the proposed rate increases will
take effect beginning July 1, 2022. The City is conducting this
Proposition 218 majority protest proceeding out of an
abundance of caution and without conceding the applicability
of Proposition 218 to Solid Waste Services.
Questions
The basis and reasons regarding the proposed rate increases
are detailed in a report available at the Office of the City Clerk,
213 E. Foothill Boulevard; Azusa City Library, 729 N. Dalton
Avenue; Azusa Light & Water, 729 N. Azusa Avenue, and on
the City’s website at www.AzusaCA.gov/947/Public-Hear-
ings. If you have questions regarding this notice or how
your rates will be affected, please call 626-812-5198 or email
SolidWasteRecycling@azusaca.gov.
Current Proposed
Monthly Monthly
Rate Rate
Residential & Multi-Family Cart Service
Single-family 96 Gal Base Rate 36.14 38.01
32 Gal Base Rate - Senior Discount 32.53 34.21
96 Gal Add'l Cart (Any Type)8.00 8.42
64 Gal Add'l Cart (Any Type)6.00 6.32
32 Gal Add'l Cart (Any Type)4.00 4.21
Commercial & Multi-Family Bin
Bin: 6-Yard 6.00 1.00 1 day/week pickup 246.29 311.82
6.00 2.00 2 day/week pickup 391.19 494.46
6.00 3.00 3 day/week pickup 536.03 676.85
6.00 4.00 4 day/week pickup 680.73 859.15
6.00 5.00 5 day/week pickup 825.83 1,041.97
6.00 6.00 6 day/week pickup 1,072.15 1,353.81
Bin: 5-Yard 5.00 1.00 1 day/week pickup 221.31 280.34
5.00 2.00 2 day/week pickup 344.24 435.30
5.00 3.00 3 day/week pickup 467.06 590.02
5.00 4.00 4 day/week pickup 589.68 744.53
5.00 5.00 5 day/week pickup 712.61 899.46
5.00 6.00 6 day/week pickup 929.20 1,173.74
Bin: 4-Yard 4.00 1.00 1 day/week pickup 196.34 248.88
4.00 2.00 2 day/week pickup 297.32 376.15
4.00 3.00 3 day/week pickup 398.11 503.20
4.00 4.00 4 day/week pickup 498.65 629.93
4.00 5.00 5 day/week pickup 599.37 756.95
4.00 6.00 6 day/week pickup 786.23 993.66
Bin: 3-Yard 3.00 1.00 1 day/week pickup 171.62 217.72
3.00 2.00 2 day/week pickup 250.42 317.09
3.00 3.00 3 day/week pickup 329.32 416.60
3.00 4.00 4 day/week pickup 407.98 515.78
3.00 5.00 5 day/week pickup 487.06 615.52
3.00 6.00 6 day/week pickup 658.68 833.24
Bin: 2-Yard 2.00 1.00 1 day/week pickup 154.95 196.83
2.00 2.00 2 day/week pickup 220.36 279.50
2.00 3.00 3 day/week pickup 285.41 361.70
2.00 4.00 4 day/week pickup 352.15 446.06
2.00 5.00 5 day/week pickup 416.81 527.78
2.00 6.00 6 day/week pickup 481.54 609.57
Bin: 1-1/2-Yard 1.50 1.00 1 day/week pickup 118.27 150.25
1.50 2.00 2 day/week pickup 196.65 249.64
1.50 3.00 3 day/week pickup 273.79 347.44
1.50 4.00 4 day/week pickup*308.98 391.76
1.50 5.00 5 day/week pickup*362.89 459.95
1.50 6.00 6 day/week pickup 416.81 528.14
Compactor: 6-Yard 6.00 1.00 1 day/week pickup 396.99 506.16
Recycling 6.00 2.00 2 day/week pickup 692.94 883.50
6.00 3.00 3 day/week pickup 988.16 1,259.90
6.00 4.00 4 day/week pickup 1,283.61 1,636.60
6.00 5.00 5 day/week pickup 1,579.39 2,013.72
6.00 6.00 6 day/week pickup 1,875.20 2,390.88
Compactor: 3-Yard 3.00 1.00 1 day/week pickup 300.97 380.45
Trash 3.00 2.00 2 day/week pickup 509.13 642.55
3.00 3.00 3 day/week pickup 717.36 904.75
3.00 4.00 4 day/week pickup 925.32 1,166.62
3.00 5.00 5 day/week pickup 1,133.77 1,429.09
3.00 6.00 6 day/week pickup 1,342.20 1,691.55
Compactor: 2-Yard 2.00 1.00 1 day/week pickup 241.18 305.31
Trash 2.00 2.00 2 day/week pickup 392.85 496.49
2.00 3.00 3 day/week pickup 544.13 687.17
2.00 4.00 4 day/week pickup 697.08 879.98
2.00 5.00 5 day/week pickup 847.93 1,070.14
2.00 6.00 6 day/week pickup 998.97 1,260.48
Commercial Organics 1.00 1 day/week pickup 106.08 111.65
First Barrel 2.00 2 day/week pickup 184.16 193.85
3.00 3 day/week pickup 262.24 276.06
4.00 4 day/week pickup 340.33 358.27
5.00 5 day/week pickup 418.42 440.48
6.00 6 day/week pickup 496.49 522.69
Commercial Organics 1.00 1 day/week pickup 90.15 94.87
Each Additional Barrel 2.00 2 day/week pickup 156.81 165.05
3.00 3 day/week pickup 223.49 235.26
4.00 4 day/week pickup 290.15 305.44
5.00 5 day/week pickup 356.83 375.64
6.00 6 day/week pickup 368.43 387.86
Saturday Service 180.89 229.63
Lock-Lid Bin Change Out 88.42 112.76
Lock-Lid Ongoing Service 9.74 12.43
Temp Bins 185.05 235.70
Extra Dumps Perm or Temp - same day 68.07 86.56
Extra Dumps Perm or Temp - other day 96.73 123.10
Roll-Off Per pick-up + Actual MRF costs 466.73 592.97
TABLE 1. RESIDENTIAL AND COMMERCIAL RATES
EFFECTIVE JULY 1, 2022
TWENTY-EIGHTH AMENDMENT TO THE
AMENDED AND RESTATED FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND ARAKELIAN ENTERPRISES, INC.,
FOR REFUSE COLLECTION, RECYCLING, AND DISPOSAL SERVICES
This Twenty-Eighth Amendment (“Amendment”) to the Amended and Restated Franchise
Agreement Between the City of Azusa and Arakelian Enterprises, Inc., for Refuse Collection,
Recycling, and Disposal Services is entered into this 20th day of June 2022 (“Effective Date”) by
and between the City of Azusa, a municipal corporation (“City”), and Arakelian Enterprises, Inc.,
a California corporation (“Contractor”). City and Contractor may hereinafter be individually
referred to as “Party” or collectively as the “Parties.”
RECITALS
A.WHEREAS, on October 2, 2000, the City Council of the City of Azusa approved the
Amended and Restated Franchise Agreement for Refuse Collection, Recycling, and Disposal
Services between the City and Contractor, which was modified in twenty-seven subsequent
amendments addressing changes deemed necessary by the Parties from time to time (“Agreement”).
B.WHEREAS, the Parties have determined that it is in the public interest for Contractor
to provide enhance service offerings or rate discounts for customers in the City, including
complimentary cart roll out services to disabled customers, a 10% senior discount for certain
customers who are 62 years of age or older, and temporary construction and debris collection
services.
C.WHEREAS, administrative corrections to the Agreement are required to align the
Agreement to the agreed upon and City-approved terms arising from the twenty-sixth amendment to
the Agreement approved by City Council on November 1, 2021 in order to maintain the consistency
of approved service rates and how those rates are calculated.
NOW, THEREFORE, in consideration of the promises and covenants contained herein,
the above recitals, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree to amend the Agreement as follows:
1.Definitions. Section 1 of the Agreement (Definitions) is hereby amended in part
to add, amend, or delete the definitions provided below. To the extent a definition included in this
Amendment No. 28 is also specified in the Agreement, the definition in this Amendment No. 28
shall apply.
“Annual Rate Adjustment” means the annual adjustment of Maximum Service Rates
by the greater of (i) an increase of three percent (3%) or (ii) the percentage increase
in CPI for the prior 12-month period (January of the current year to January of the
prior year) plus one percent (1%) (i.e., CPI +1).
2.Roll Out Services for Disabled Customers. A new Section 4(A)(vi) titled
“Disabled Customers; Roll-out Service” shall be added to the Agreement as follows:
Attachment 3
(vi) Roll-Out Services for Disabled Customers. Contractor shall provide
Barrel roll-out service for disabled Residential Customers at no charge. To qualify
for such service, Residential Customers must present to Contractor a written letter
from a physician indicating that the Residential Customer is physically unable to
roll out Barrels or a copy of a handicap placard issued to the Residential Customer
from by the Department of Motor Vehicles. Roll-out service will be effective
immediately after a Customer demonstrates proof of the foregoing.
3. Temporary Construction Debris Collection. A new Section 4.1(Q) titled
“Temporary Construction Debris Service” shall be added to the Agreement as follows:
I. Temporary Construction Debris Service. Contractor shall offer
temporary services for the collection of Construction Debris. Rates applicable to
such services shall be set forth in Exhibit A to the Agreement.
4. Annual Rate Adjustment. Section 5.0(B) to the Agreement shall be deleted in its
entirety and shall be replaced with the following:
B. Annual Rate Adjustment. For the contract year beginning July 1,
2022, and annually thereafter on July 1 through and including July 1, 2026, the
Maximum Service Rates provided in Exhibit A shall be automatically adjusted
annually by the Annual Rate Adjustment, provided, however, the Maximum
Service Rates shall not be increased by more than ten percent (10%) in any fiscal
year. After July 1, 2026, and each five years thereafter, the City Council shall
agendize a vote for adoption of an extension to the Annual Rate Adjustment in
accordance with applicable law, including without limitation Government Code
Section 53756, and Article XIII D, section 6(a) of the California Constitution, to
the extent applicable. By way of illustration, rates shall be adjusted as follows:
Year CPI
Year 2 (January) 276.589
Year 1 (January) 271.311
Difference + 5.2780 Year 2 CPI – Year 1 CPI
Percentage Change + 2.95% (Difference ÷ Year 1 CPI) x 100% + 1%
5. Rate Discounts for Seniors. A new Section 5.0(E) titled “Senior Discounts” shall
be added to the Agreement as follows:
F. Senior Discounts. Residential Customers that are senior citizens
may qualify for a ten percent (10%) discount for collection services (“Senior
Discount”). To qualify for the Senior Discount, Customers must submit a written
request to Contractor, and must satisfy all of the following requirements: (i) be the
head of household as evidenced by his or her name on the utility bill for the
Residential premises for which a discount is sought; and (ii) be sixty-two (62) years
of age or older, demonstrated by either by submitting a copy of a government-
issued driver’s license or other similar proof of age issued by a governmental entity.
The Senior Discount will become effective the following month after an application
has been approved and applied to the base service of three (3) thirty-two (32) gallon
Barrels. Additional Barrels shall not be subject to the Senior Discount.
6. Service Rates. Exhibit A (Maximum Service Rates) to the Agreement is hereby
amended and replaced in its entirety with a newly revised Exhibit A attached to this Amendment,
which shall apply for the period beginning July 1, 2022.
7. Due Execution. The person(s) executing this Amendment on behalf of a Party
hereto warrant(s) that (i) such Party is duly organized and existing; (ii) such person(s) are duly
authorized to execute and deliver this Amendment on behalf of said Party; (iii) by so executing
this Amendment, such Party is formally bound to the provisions of this Amendment; and (iv)
entering into this Amendment does not violate any provision of any other agreement to which said
Party is bound.
8. Entire Amendment. This Amendment contains the entire agreement and
understanding between the Parties with respect to the subject matter of this Amendment, and
supersedes any and all prior or contemporaneous oral and written representations, warranties,
agreements, and understandings between the Parties concerning the subject matter of this
Amendment.
9. Full Force and Effect. Other than as set forth in this Amendment, the terms of the
Agreement shall remain unchanged and in full force and effect. In the event of any conflict between
the Agreement and this Amendment, this Amendment shall apply.
10. Counterparts. This Amendment may be executed in counterparts, each of which
shall be considered an original.
[Signatures page follows]
IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first
set forth below.
CITY OF AZUSA ARAKELIAN ENTERPRISES, INC.,
a California corporation
ROBERT GONZALES
Mayor
Ron Arakelian III
Executive Officer
Date
Date
ATTEST:
________________________________
JEFFREY LAWRENCE CORNEJO JR.
City Clerk
_____________________________
Date
APPROVED AS TO FORM
________________________________
BEST BEST & KRIEGER
Marco A. Martinez, City Attorney
_____________________________
Date
EXHIBIT A
MAXIMUM SERVICE RATES
Proposed Solid Waste Rates
Effective July 1, 2022