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HomeMy WebLinkAboutItem 40 - Resolution Adjusting Solid Waste Rates Public Works Agency www.santa-ana.org/pw Item # 40 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 17, 2022 TOPIC: Resolution Adjusting Solid Waste Rates AGENDA TITLE Public Hearing - Adopt Resolution Adjusting the Solid Waste Rates RECOMMENDED ACTION Hold a public hearing and adopt a resolution adjusting the solid waste rates effective July 1, 2022. DISCUSSION In September 2016, Governor Jerry Brown signed Senate Bill (SB) 1383 into law, setting statewide methane reduction targets. The targets include requirements to reduce organic waste sent to landfills, such as food waste, paper products, and green waste, by 75 percent, and increase the rescue of edible food by 20 percent by 2025. To achieve this goal, SB 1383 requires cities to implement the following actions by January 1, 2022: adopt a mandatory recycling ordinance; provide new organics recycling services to all residential, multi-family properties, and commercial businesses; develop an edible food recovery program; purchase organic materials and recycled content paper products; require franchise solid waste services provider to comply with SB 1383 through the City franchise agreement; and establish compliance, enforcement, education, and reporting programs. In order to comply with SB 1383 requirements, to expand programing and services, and due to the expiration of the current solid waste agreement, the City Council entered into a new exclusive franchise agreement for the collection of solid waste on August 17, 2021, with services commencing July 1, 2022. The agreement includes rates for existing and new services. As such, staff recommends the adoption of a resolution adjusting solid waste collection rates (Exhibit 1). Typical Residential Bill Impact The typical rate of a residential curbside cart customer will increase $0.37 per month, effective July 1, 2022. The rate adjustment is based on the actual cost to provide services. When compared to neighboring cities, the typical Santa Ana customer will continue to pay Adopt Resolution Adjusting Solid Waste Rates May 17, 2022 Page 2 2 6 9 2 a similar amount, on average, for curbside cart service as neighboring cities such as Garden Grove, Brea, Fullerton and Yorba Linda. Public Hearing Notification As required by the provisions of Proposition 218, notice of a public hearing regarding the adjustment of solid waste rates was mailed to all property owners within the City of Santa Ana’s solid waste service area on or before April 1, 2022. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no net fiscal impact associated with this action as the additional revenue collected will be used to comply with the state mandates. EXHIBIT(S) 1. Resolution Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager Resolution No. 2022-XXX Page 1 of 3 RESOLUTION NO. 2022-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADJUSTING RATES FOR RESIDENTIAL, MULTIFAMILY, COMMERC AL, INDUSTRIAL, AND CONSTRUCTION AND DEMOLITION SOLID WASTE COLLECTION AND PROCESSING SERVICES PROVIDED BY THE CITY OF SANTA ANA WHEREAS, Chapter 16 of the Santa Ana Municipal Code, Article II, Section 16- 30, provides that the City and its solid waste collection contractor have the exclusive duty, right, and privilege to collect, transport, process, recycle, divert by means of composting, mulching, and/or transforming, retain, and dispose of all solid waste accumulated, produced or generated in the City; and WHEREAS, Chapter 16 of the Santa Ana Municipal Code, Article II, Section 16- 35, authorizes the City to charge for the provision of solid waste collection services to customers within the City of Santa Ana and to establish those rates by resolution; and WHEREAS, on August 17, 2021, the Santa Ana City Council approved a new solid waste agreement with Republic Services, specifically entitled “Agreement between City of Santa Ana and Republic Waste Services of Southern California, LLC dba Republic Services for Collection and Handling of Solid Waste Generated, Produced and/or Accumulated in the City of Santa Ana,” Agreement No. A-2021-171 (“Solid Waste Agreement”); and WHEREAS, the Solid Waste Agreement includes proposed service rates that are scheduled to take effect on July 1, 2022, subject to special and annual rate adjustments that would become effective July 1, 2023 through July 1, 2026, as described in Exhibit A (collectively, the “Charges”); and WHEREAS, the rate structure for solid waste, recycling, and organics collections includes several customer classes—residential, multifamily, commercial, industrial, and construction and demolition, based on the container size, type of service, and frequency of collection; and WHEREAS, the Charges are property-related fees within the meaning of Article XIII D of the California Constitution; and WHEREAS, the Charges are equitable to all customer classes; and WHEREAS, Article XIII D, section 6 of the California Constitution (“Article XIII D”) requires that prior to imposing new or increased Charges, the City shall provide written notice by mail of the new or increased Charges to the record owner of each parcel upon which the Charges are proposed for imposition and any tenant directly liable for payment of the Charges, the amount of the Charges proposed to be imposed on each Resolution No. 2022-XXX Page 2 of 3 parcel, the basis upon which the Charges were calculated, the reason for the Charges, and the date, time, and location of a public hearing on the proposed Charges; and WHEREAS, on April 1, 2022, the City distributed notices as required by Article XIII D regarding the City Council’s consideration of the Charges at a public hearing scheduled for May 17, 2022, to all owners of record in accordance with Article XIII D, Section 6(a)(1) of the California Constitution and Government Code Section 53755; and WHEREAS, on May 17, 2022, the City Council held a duly noticed public hearing on the Charges contained in this Resolution within Exhibit A, and at that time invited oral and written comments from the public; and WHEREAS, upon close of said public hearing, the City did receive ________ written protests to the Charges, and therefore there has been no majority protest; and WHEREAS, the City Council now desires to establish and impose the proposed Charges as set forth in Exhibit A, for the five-year period commencing July 1, 2022 through June 30, 2027. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The adoption of this Resolution falls within a statutory exemption from environmental review pursuant to sections 15273, 15060(c)(2) of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA), which pertain to the establishment, modification, structuring, restructuring, or approval of rates and charges by public agencies which the public agency finds are for the purpose of meeting operating expenses, and pertain to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and that are not defined as a project under CEQA Regulations. Section 2. After considering the material presented in Exhibit A, the City Council hereby finds as follows: (a) Revenues derived from the Charges do not exceed the funds required to provide the property-related service; (b) Revenues derived from the Charges shall not be used for any purpose other than that for which the Charges are imposed; (c) The amount of the Charges imposed upon any parcel or person does not exceed the proportional cost of services attributable to the parcel; (d) The Charges are for services actually used by, or immediately available to, the owner of the property upon which the Charges are imposed; and (e) The Charges will not be expended for general governmental purposes. Section 3. After receiving public comment and testimony on the proposed Charges, and absent a majority protest to the proposed Charges, the Charges are Resolution No. 2022-XXX Page 3 of 3 hereby approved to take effect on the dates, in the amounts, and at the rates described in Exhibit A, attached and incorporated herein by this reference. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. To the extent any other resolution of the City conflicts with the provisions set forth herein, it is the explicit intent of the City Council that the provisions of this Resolution shall supersede. ADOPTED this ____ day of ___________________, 2022. Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: John M. Funk Chief Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers _ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby certify the attached Resolution No. 2022 -_____ to be the original resolution adopted by the City Council of the City of Santa Ana on _____________________, 2022. Date: Clerk of the Council City of Santa Ana EXHIBIT A Page 1 of 7 Service Effective July 1, 2022 RESIDENTIAL MONTHLY RATES Standard Service Curbside Service (Includes 1 Refuse, 1 Recycling Cart, and 1 Organics Cart, Any Size) $22.94 Senior/Mobile Home Low-Volume Curbside Service (35-Gallon Carts)$17.82 Additional Curbside Service Unit Rates Additional Refuse Cart - Above One $5.85 Additional Recycling Cart - Above One $2.00 Additional Organics Cart - Above One $2.00 Contamination Fee (4th and Subsequent Event) $10.77 Damaged Cart Penalty $48.46 Steam Cleaning of Curbside Carts $26.92 Walk-Out Service (For Other Than Disabled Individuals)$26.92 Residential Extra Pick-Up Per Container Charge $37.42 Bulky Item Pickup Fee (In Excess of 4 Free Pickups per Year and/or 4 items per pickup)$47.44 Kitchen Pail Purchase (each)$12.00 COMMERCIAL CURBSIDE CART RATES Base Service Cart Services (Includes 1 Refuse and 1 Recycling Cart, Any Size, Collected Once Per Week) $175.00 Organics Cart (Any Size, Collected Once Per Week) $75.00 Additional Curbside Service Unit Rates Additional Refuse Cart - Above One $100.00 Additional Recycling Cart - Above One $75.00 Additional Organics Cart - Above One $75.00 RESIDENTIAL/MULTIFAMILY AND COMMERCIAL BIN REFUSE RATES 1 Cubic Yard Refuse Bin 1 Yard Refuse Bin x 1/Week $113.54 1 Yard Refuse Bin x 2/Week $199.11 1 Yard Refuse Bin x 3/Week $284.84 1 Yard Refuse Bin x 4/Week $370.61 1 Yard Refuse Bin x 5/Week $456.26 1 Yard Refuse Bin x 6/Week $569.73 2 Cubic Yard Refuse Bin 2 Yard Refuse Bin x 1/Week $129.48 2 Yard Refuse Bin x 2/Week $231.24 2 Yard Refuse Bin x 3/Week $332.86 2 Yard Refuse Bin x 4/Week $434.47 2 Yard Refuse Bin x 5/Week $536.13 2 Yard Refuse Bin x 6/Week $679.58 3 Cubic Yard Refuse Bin EXHIBIT A Page 2 of 7 Service Effective July 1, 2022 3 Yard Refuse Bin x 1/Week $187.32 3 Yard Refuse Bin x 2/Week $346.82 3 Yard Refuse Bin x 3/Week $506.25 3 Yard Refuse Bin x 4/Week $665.68 3 Yard Refuse Bin x 5/Week $825.12 3 Yard Refuse Bin x 6/Week $1,054.12 4 Cubic Yard Refuse Bin 4 Yard Refuse Bin x 1/Week $245.17 4 Yard Refuse Bin x 2/Week $448.40 4 Yard Refuse Bin x 3/Week $651.71 4 Yard Refuse Bin x 4/Week $855.12 4 Yard Refuse Bin x 5/Week $1,054.43 4 Yard Refuse Bin x 6/Week $1,358.25 6 Cubic Yard Refuse Bin 6 Yard Refuse Bin x 1/Week $350.87 6 Yard Refuse Bin x 2/Week $664.83 6 Yard Refuse Bin x 3/Week $979.59 6 Yard Refuse Bin x 4/Week $1,294.73 6 Yard Refuse Bin x 5/Week $1,609.62 6 Yard Refuse Bin x 6/Week $2,085.25 RESIDENTIAL/MULTIFAMILY AND COMMERCIAL BIN RECYCLING RATES (75% OF REFUSE RATE) 1 Cubic Yard Recycling Bin 1 Yard Recycling Bin x 1/Week $85.16 1 Yard Recycling Bin x 2/Week $149.33 1 Yard Recycling Bin x 3/Week $213.63 1 Yard Recycling Bin x 4/Week $277.96 1 Yard Recycling Bin x 5/Week $342.20 1 Yard Recycling Bin x 6/Week $427.30 2 Cubic Yard Recycling Bin 2 Yard Recycling Bin x 1/Week $97.11 2 Yard Recycling Bin x 2/Week $173.43 2 Yard Recycling Bin x 3/Week $249.65 2 Yard Recycling Bin x 4/Week $325.85 2 Yard Recycling Bin x 5/Week $402.10 2 Yard Recycling Bin x 6/Week $509.69 3 Cubic Yard Recycling Bin 3 Yard Recycling Bin x 1/Week $140.49 3 Yard Recycling Bin x 2/Week $260.12 3 Yard Recycling Bin x 3/Week $379.69 3 Yard Recycling Bin x 4/Week $499.26 3 Yard Recycling Bin x 5/Week $618.84 3 Yard Recycling Bin x 6/Week $790.59 4 Cubic Yard Recycling Bin EXHIBIT A Page 3 of 7 Service Effective July 1, 2022 4 Yard Recycling Bin x 1/Week $183.88 4 Yard Recycling Bin x 2/Week $336.30 4 Yard Recycling Bin x 3/Week $488.78 4 Yard Recycling Bin x 4/Week $641.34 4 Yard Recycling Bin x 5/Week $790.82 4 Yard Recycling Bin x 6/Week $1,018.69 RESIDENTIAL/MULTIFAMILY AND COMMERCIAL SPLIT BIN REFUSE/RECYLING RATES 2 Cubic Yard Refuse/Recycling Split Bin 2 Yard Refuse/Recycling Split Bin x 1/Week $198.70 2 Yard Refuse/Recycling Split Bin x 2/Week $348.44 2 Yard Refuse/Recycling Split Bin x 3/Week $498.47 2 Yard Refuse/Recycling Split Bin x 4/Week $648.57 2 Yard Refuse/Recycling Split Bin x 5/Week $798.46 2 Yard Refuse/Recycling Split Bin x 6/Week $997.03 3 Cubic Yard Refuse/Recycling Split Bin 3 Yard Refuse/Recycling Split Bin x 1/Week $212.65 3 Yard Refuse/Recycling Split Bin x 2/Week $376.56 3 Yard Refuse/Recycling Split Bin x 3/Week $540.49 3 Yard Refuse/Recycling Split Bin x 4/Week $704.45 3 Yard Refuse/Recycling Split Bin x 5/Week $868.35 3 Yard Refuse/Recycling Split Bin x 6/Week $1,093.15 4 Cubic Yard Refuse/Recycling Split Bin 4 Yard Refuse/Recycling Split Bin x 1/Week $226.59 4 Yard Refuse/Recycling Split Bin x 2/Week $404.67 4 Yard Refuse/Recycling Split Bin x 3/Week $582.51 4 Yard Refuse/Recycling Split Bin x 4/Week $760.32 4 Yard Refuse/Recycling Split Bin x 5/Week $938.23 4 Yard Refuse/Recycling Split Bin x 6/Week $1,189.27 RESIDENTIAL/MULTIFAMILY AND COMMERCIAL ORGANICS BIN RATES (75% OF REFUSE RATE) Organic Bin Rates 2 Yard Organics Bin x 1/Week $97.11 2 Yard Organics Bin x 2/Week $173.43 2 Yard Organics Bin x 3/Week $249.65 2 Yard Organics Bin x 4/Week $325.85 2 Yard Organics Bin x 5/Week $402.10 2 Yard Organics Bin x 6/Week $509.69 RESIDENTIAL/MULTIFAMILY AND COMMERCIAL ORGANICS AND RECYCLING CART RATES FOR BIN CUSTOMERS Any Size Organics Cart Rates for Bin Customers Any Size Organics Cart x 1/Week $75.00 EXHIBIT A Page 4 of 7 Service Effective July 1, 2022 Any Size Organics Cart x 2/Week $157.50 Any Size Organics Cart x 3/Week $232.50 Any Size Organics Cart x 4/Week $307.50 Any Size Organics Cart x 5/Week $382.50 Any Size Organics Cart x 6/Week $457.50 Any Size Recycling Cart Rates for Bin Customers Any Size Recycling Cart x 1/Week $75.00 Any Size Recycling Cart x 2/Week $157.50 Any Size Recycling Cart x 3/Week $232.50 Any Size Recycling Cart x 4/Week $307.50 Any Size Recycling Cart x 5/Week $382.50 Any Size Recycling Cart x 6/Week $457.50 ADDITIONAL SERVICE RATES Extra Pickup $94.92 Enclosure Charge 1/Week $4.13 Enclosure Charge 2/Week $8.26 Enclosure Charge 3/Week $12.39 Enclosure Charge 4/Week $16.52 Enclosure Charge 5/Week $20.65 Enclosure Charge 6/Week $24.78 25' to 50' Push-Out Charge 1/Week $12.46 25' to 50' Push-Out Charge 2/Week $24.93 25' to 50' Push-Out Charge 3/Week $37.39 25' to 50' Push-Out Charge 4/Week $49.85 25' to 50' Push-Out Charge 5/Week $62.32 25' to 50' Push-Out Charge 6/Week $74.78 >50" Push-Out Charge 1/Week $18.69 >50" Push-Out Charge 2/Week $37.39 >50" Push-Out Charge 3/Week $56.08 >50" Push-Out Charge 4/Week $74.78 >50" Push-Out Charge 5/Week $93.47 >50" Push-Out Charge 6/Week $112.17 Bin Overage Fee $39.88 Restart Fee $22.18 Commercial Exchange Fee $63.22 Roll-Off Trip Charge (Dry Run)$75.85 Return Trip Fee $75.85 Commercial Bulky Item Pickup Fee $47.44 Multifamily: Additional Bulky Item pickups/items: 10 items per dwelling unit per quarter (unused items do not roll-over to next quarter) No charge Up to 2 items per pickup in excess of 10 free items per dwelling unit per quarter $54.31 Per item per pickup above 2 $7.24 Cleaning Fee - Commercial/Roll-Off $31.97 EXHIBIT A Page 5 of 7 Service Effective July 1, 2022 Bin Relocation Fee $53.85 Commercial and Roll-Off Contamination Penalty (4th and Subsequent Events) $53.85 Split-Bin Setup Fee $105.91 Locking Bin 1/Week $3.33 Locking Bin 2/Week $3.33 Locking Bin 3/Week $3.33 Locking Bin 4/Week $3.33 Locking Bin 5/Week $3.33 Locking Bin 6/Week $3.33 Scout Service 1/Week $45.00 Scout Service 2/Week $90.00 Scout Service 3/Week $135.00 Scout Service 4/Week $180.00 Scout Service 5/Week $225.00 Scout Service 6/Week $270.00 PERMANENT ROLL-OFF, COMPACTOR ROLL-OFF, AND TEMPORARY BIN RATES Any Size Permanent Refuse Roll-Off $336.00 Any Size Permanent Recycling Roll-Off $336.00 Any Size Permanent Organics Roll-Off $336.00 Any Size Compactor $403.20 3-Yard Temp Bin $151.76 Refuse Rate Per Ton $82.97 Recycling Rate Per Ton $87.97 Organics Rate Per Ton $125.00 C&D ROLL-OFF BOX AND TEMPORARY C&D BIN RATES Mixed C&D Roll-Off Any size - Up to 8 Tons Per Load Included $670.29 3-Yard Temp C&D Bin $175.00 Mixed C&D Processing/Disposal - Per Ton in Excess of 8 Tons Per Load $104.73 The rates above will go into effect on July 1, 2022 (rate year one). As further described below, there shall be a special rate adjustment for rate years two through four, and annual rate adjustments for rate years two through five, based on the methodology contained in the tables below. SPECIAL RATE ADJUSTMENT Rate Year Additional Rate Increase Percentage Rate Year Two - (July 1, 2023 – June 30, 2024) 1% Rate Year Three - (July 1, 2024 – June 30, 2025) 2.25% Rate Year Four - (July 1, 2025 – June 30, 2026) 2.25% Rate Year Five - (July 1, 2026 – June 30, 2027) 0% EXHIBIT A Page 6 of 7 ANNUAL RATE ADJUSTMENT SOLID WASTE SERVICES RATE ADJUSTMENT METHODOLOGY RESIDENTIAL CURBSIDE, MULTIFAMILY AND COMMERCIAL SERVICES COST COMPONENTS % of Costs (1) Cost Component Curbside Service Bin Service Rate Adjustment Index A. Service 72% 78% Consumer Price Index for All Urban Consumers (CUUR000SA0L1E), all items less food and energy – U.S. City Average (2) B. Fuel 5% 5% Producer Price Index WPU05522101, Fuels and related products and power – Commercial natural gas (2) C. Disposal 23% 17% Waste Disposal Agreement per ton gate rate at Orange County Landfill System Total 100% 100% (1) Weightings may be adjusted annually based on the adjustment process described in the franchise agreement with Republic Services. (2) Average annual change for the 12 months ending December of the previous Calendar Year compared to the 12 months ending in December of year prior. ROLL-OFF COST COMPONENTS ROLL-OFF PULL FEE PER LOAD – ALL TYPES AND SIZES Cost Component % of Costs (1) Rate Adjustment Index A. Service 90% Consumer Price Index for All Urban Consumers (CUUR000SA0L1E), all items less food and energy – U.S. City Average (2) B. Fuel 10% Producer Price Index WPU05522101, Fuels and related products and power – Commercial natural gas (2) Total 100% ROLL-OFF TONNAGE CHARGE Cost Component Rate Adjustment Index C. Tonnage Charge Consumer Price Index for All Urban Consumers (CUUR000SA0), all items, not seasonally adjusted – U.S. City Average (2) (1) Weightings may be adjusted annually based on the adjustment process described in the franchise agreement with Republic Services. (2) Average annual change for the 12 months ending December of the previous Calendar Year compared to the 12 months ending in December of year prior. EXHIBIT A Page 7 of 7 CONSTRUCTION AND DEMOLITION SERVICES Cost Component Rate Adjustment Index A.All Customer C&D Rates Consumer Price Index for All Urban Consumers (CUUR000SA0), all items, not seasonally adjusted – U.S. City Average (1) (1)Average annual change for the 12 months ending December of the previous Calendar Year compared to the 12 months ending in December of year prior.