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HomeMy WebLinkAbout55B - RESO REFUSE RATESREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2007 TITLE: RESOLUTION AND AMENDMENT TO AGREEMENT PERMITTING ADJUSTMENTS TO REFUSE RATES J CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s' Reading ^ Ordinance on 2n° Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Adopt a resolution modifying the City's refuse program surcharge on business and apartment service. 2. Direct the City Attorney to prepare and authorize the Clerk of the Council and the City Manager to execute an amendment to the agreement with waste Management Inc. adding new programs and permitting adjustments to Waste Management's curbside rate to support changes in the curbside program. DISCUSSION Business and Apartment Refuse Surchar e Pursuant to the agreement with Waste Management, the City currently receives 12.8 percent surcharge on the business and apartment refuse charges imposed by Waste Management to pay for the costs of administering the refuse collection and recycling program and supporting the federal clean water protection activities. Any change in this surcharge must be established by Council resolution. At this time, it is recommended that the surcharge be increased to 15.8 percent to offset increased overhead costs associated with the refuse program. The coat of a commercial 3-yard bin, with once per week pickup, will increase $5.58 per month for a total cost of $102.22 per month. Fees in other cities currently range from $43.71 to $143.39 per month. Residential Curbside Program Residential curbside rates are also proposed for adjustment, due to the implementation of two new programs by Waste Management. During the last three years the City has provided a household hazardous waste (HHW) collection program to single-family residents funded by a State grant that expired at the end of April. To provide for continued safe disposal 55B-1 Resolution and Amendment To Refuse Agreement June 18, 2007 Page 2 of household hazardous waste (paint, pesticides, cleaning solvents, etc.) staff is proposing that Waste Management coordinate with Public Works to provide an HHW collection event next year whereby residents will be able to bring their waste to a single location and properly dispose of it. In July 2006 Senate Bill 1305 was signed into law prohibiting the disposal of needles in commercial or residential trash beginning in 2008. Approximately three percent of the national population uses self-injected medications. To address this growing problem staff is recommending that Waste Management coordinate with Public Works to implement a convenient mail-back service that will provide residents with approved containers for used needles that they can mail in for incineration when the containers are full. To pay for these new programs, an increase in the curbside refuse rate will be required. The current rate is set by a formula which is part of the City's agreement with Waste Management. These new services will require an amendment to that agreement to increase Waste Management's curbside rate by $.24 per month for a total monthly bill of $15.90. Fees in other cities range from $6.54 to $19.95 per month. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The increased surcharge on business and apartment services will generate approximately $437,500 and will be deposited in the program surcharge account (account no. 69-01-5112). The increase in the curbside rate will generate approximately $120,000 and will be deposited into refuse collection charges account (account no. 69-01-5598). APPROVED AS TO FUNDS AND ACCOUNTS: / ~ James G. Ross Francisco Gutierrez Executive Director Executive Director Public Works Agency Finance & Mgmt. Services Agency 55B-2 Lss060707 RESOLUTION NO. 2007- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA INCREASING THE AMOUNT OF THE SOLID WASTE PROGRAM SURCHARGE ESTABLISHED PURSUANT TO SECTION 10 OF THE THIRD AMENDED AND RESTATED AGREEMENT FOR THE COLLECTION AND HANDLING OF SOLID WASTE GENERATED, PRODUCED AND/OR ACCUMULATED IN THE CITY OF SANTA ANA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana has entered into an agreement with USA Waste of California Inc., dba Waste Management of Orange County ("Contractor"), whereby Contractor is the exclusive provider of the collection and handling of solid waste within the limits of the City of Santa Ana. B. Pursuant to the exclusive contract, the City currently receives a 12.8 percent surcharge from Contractor based upon its Gross Receipts. The funds received pursuant to the surcharge are used in part to pay for the costs of administering the refuse collection and recycling program and supporting the federal clean water protection activities. C. The City's costs associated with administering the refuse collection and recycling program and Federal Clean Water Act requirements have increased above the amounts currently collected pursuant to this program surcharge. It is recommended that the surcharge on business and apartment services be increased by three percent (3%) to offset these increased costs. D. The increase in the refuse program surcharge established by this resolution is estimated to collect $435,000 to pay the cost of administering the refuse collection program. E. The City Council incorporates herein, as though fully set forth, the Request For Council Action accompanying this resolution, and all background information and studies presented to the City Council. Section 2. The City Council hereby increases the refuse program surcharge on business and apartment services. A. The refuse service surcharge established pursuant to section 10 of the "Third Amended and Restated Agreement for the Collection and Handling of Solid Waste 55B-3 Generated, Produced and/or Accumulated in the City of Santa Ana" is hereby increased from 12.8 percent to 15.8 percent. B. The Contractor shall commence collecting this refuse program surcharge effective July 1, 2007. Section 3. 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. ADOPTED this day of 2007. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney Laura Sheedy Assistant City Attorney AYES: NOES: Councilmembers Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 55B-4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2007-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana ADOPTED this day of June, 2007. 55B-5 55B-6