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Home My WebLink AboutO.B. 1 TRASH FEES 02-18-92-i � -9-1, t FEBRUARY 13, 1992 OLD BUSINESS NO. 1 2-18-92 n- HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL ti0iVI: WILLIAM A. HUSTON, CITY MANAGER 1 D J E% -F: TRASH COLLECTION FEES Councilmember Potts has asked whether the City is being overcharged for trash collection services. Last year the City Council approved an agreement with Great, Western Reclamation for a recycling program. The City's recycling program is based upon, and in compliance with, the State's mandated recycling law, Assembly Bill (AB) 939. The negotiations with Great Western Reclamation took into account the requirements of AB 939, the City's Source Reduction and Recycling Element (SRRE) prepared pursuant to AB 939, and the cost to utilize a Material Recovery Facility (MRF). The recycling agreement contains the MRF charges, a formula for future increases in MRF services and monthly per unit charges for hauling trash to the MRF. The monthly hauling charges are regulated by a formula (utilizing the Weighted Average Refuse Rate Increase Computation - Consumer Price Index Weighted Average Method). The landfill gate fees are set by the County of Orange and are factored into the monthly trash rates. Staff is satisfied that the City is not being overcharged. The City's agreement with Great Western Reclamation contains very specific standards for setting the rates. There are a variety of data bases (the City's SRRE, MRF charges, detailed monthly reports required by the City concerning actual trash collected and taken to the MRF, etc.) which provide the City the ability to reconcile rates with the amount of trash hauled and taken to the MRF and landfill sites. This enables the City to comply with AB 939 and ensure that the rates are reasonable and substantiated. It should be pointed out that as cities transition to recycling programs, they have better data upon which to judge and set hauling rates because of the requirements of AB 939. The City's SRRE is based upon actual sampling of trash by types which means the City is better able to reconcile and analyze the interrelationships between the cost of hauling, disposal fees and MRF charges. Prior to AB 939 and recycling programs, rates were essentially set based upon historical factors (what prior years rates were) and gate fees. City Council February 13, 1992 Page two Another measure of rates is what other cities pay. As previously pointed out to the City Council, of the nineteen cities in Orange County having recycling programs, the median monthly rate for residential service is $11.57. Tustin's rate is $11.73 per month. The actual rate charged by Great Western Peclamation is $11.63 per month. The balance of ten (10) cents is charged by the City to cover the cost of delinquent accounts since residential rates are collected through the property tax. This rate comparison does not take into account any special services provided at no cost by the franchise hauler. For example, in Tustin, Great Western Reclamation must provide recycling program publicity at no cost and a special pick up service at no charge for certain items such as abandoned furniture and appliances. The City's commercial rates are also competitive. Based on the rates in fourteen Orange County cities, the average rate for three cubic yard bin service (once weekly) is $82.62. The rate for the same bin service in Tustin is $80.71. Of the fourteen cities; seven, including Tustin, recycle commercial bin service. It can be assumed the rates for cities without recycling will increase as they convert to recycling programs. Schedules A, B and C of the City's agreement with Great Western Reclamation are attached. These schedules delineate the basis for setting and adjusting the rates for hauling and disposal services. WAH 6X)JJ- trshfees.wah SCHEDULE A CHARGES AND RATES EFFECTIVE JULY 11 1991. A. Residential: Single and three (3) or fewer multi -family units: non -bin regular service once weekly at curb or alley; inaterials stored in approved containers or manner, collection limited to two hundred (200) pounds of solid waste per week. Charges to be paid by City to Contractor. Hauling Charge $ 5.20 per month Disposal Charge 6.43 per month Total Residential Rate $11.63 per month The foregoing hauling charge will not be subject to the modified CPI adjustment until July 1, 1992. The foregoing disposal rate includes the charges for recycling at the MRF operated by Sunset Environmental, Inc., of Thirty -Six and 75/100 Dollars ($36.75) per ton.. In the event the Countyof Orange increases the landfill disposal fee after July 1, 1991, the disposal fee may be appropriately increased. The foregoing disposal charge is based upon an estimated average of 81 pounds of disposable solid waste per residence per month.. This estimated poundage shall be used for the entire July 1, 1991 to June 30, 1992 period. If, at the end of that period, weight records disclose that the actual average weight per residence per month is other than 81 pounds, then that actual weight shall be used for establishing the new disposal rate for July 1, 1992 to June 30, 1993. Additionally, a credit or charge shall be added to or subtracted from the newly calculated total residential rate as a separate line item for July 1, 1992 to June 30, 1993 so as to reimburse City or Company for the total dollar value Qf the undercharge or overcharge for the period . of July 1•, 1991-- to June 3 0 , 1992.. -Similar*. annua 1 adjustments shall be made each June during the term of the agreement so as to reflect actual average weight per residence per month. B. Commercial Can Service: Can service to commercial premises which can reasonably be served with basic non -bin service, once weekly at curb or alley, with materials stored in approved containers and manner, with collection limited to 200 pounds of solid waste per week at one location only, with charges paid by City to Contractor. A--1 Multi -family developments of four or more residential units which are physically determined by City to beibe ed in such a way as to make bin service impractical shall d by commercial can service. Per Billing Unit Served (One business or building represents one billing unit.) Hauling charge $5.62 Disposal charge 6.43 Total $12.05 C. Commercial, Multi -Family and Other: Service t above premisesto shall her than those covered by paragraphs A and be provided by bin service of size, frequency and location as shall be agreed upon by Contractor and customer; materials shall be stored in approved containers and manner; charges shall be paid by customer and collected by Contractor. Contractor shall pay a franchise fee to City of two percent (2%) of the gross receipts for such services. Charges for such bin service shall be as follows: Category Collection Disposal Total 2 yd lX $ 42.23 $ 15.93 $ 58.16 94.15 2 yd 2X 62.30 31.85 47.78 130.09 2 yd 3X 82.31 102.39 63.70 166.09 2 2 yd yd 4X 5X 122.41 79.63 202.04 3 yd 6X 142.43 95.55 237.98 3 yd 1X 56.82 23.89 80.71 129.29 3 yd 2X 81.51 47.78 71.66 177.92 3 yd 3X 106.26 95.55 224.65 3 Y d 4X 129.10 153.85 119.44 273.29 3 3Y yd d 5X 6X 178.54 143.33 321.87 _ 4 yd 1X 59.42 31.85 - 91.27 153.21 4 yd 2X . 8951 63.7 0 95.55 214.71 ' 4.yd 3X 119.16 149.08 127.40 276.48 4 4 yd yd 4X 5X 179.02 159.25 338.27 4 yd 6X 208.91 191.10 400.01 A-2 ScnPc3uLP „R„ „B,. SC,'6-iA--JDULL r-+ CO�4CU�4 PPI CS I1-4DE wE1 c;l TEED ��ZR;cE ME7 HOD Increase Co t L WeioY�� -,' r cm Seo. Indexes) IndeN dour -z Comoonent Averaoe Hourly Es:abI i shmen t [� ;;a Ernc�lo%•ment Earn i nos - 0 •��Z� = Hours � Earnino� & Earn i nos _ Sanitary Services Publ i shed Mon- eSIC)445 Averaee thI •t b 8 u r e a u Hourly Earnings o. Labor L c i s. i c s �00� Consumer Price In- Monthly labor Gasoline dex :CPI )Unad.iusted review MLP.) U.S. Ci ./ Averaoe Pub] i shed mon- Ail Urban Consumers :il%• by vJrc-au Gasoline o, Labor statistics _ 0.0700 Wroducer Price index: Producer Price Notcr Trucks •% - UPI). Motor Truths dna ?rice Inde: -,e ;Code 141100-7) Pubi i =.recd Non t. 1 b�- ELS Ppj General Puroo« MLR General Puroose sCode 11-4) Machinery and Eauioment • 0.1431 PPI: General ML:? riu %ornobi l e Farts 0.0?1s Purpose Machiner:• and "cauioment • - _ and ::o u i ertie n . pr -I. Fabricated- Fabricated Structural Meal • Structural "Product-. 0.0200 P: oduc t' S Code 10-7., ML c Metal O SSQ O CP! : Los An oe 1 e c---. C= Detailed . I Published Al l Other . Lono 8 paeh.Anahern; Report SLS ;Unad.iu.:ed) .ri 1 Mon `h 1 b.• Urban Conc_urgers. All Items TOTAL 1.0000 RATE I14C "SE: ScnPc3uLP „R„ TG i L Ra! -e increase ------------ r,.. •,1,71 .0000 Sc;ledule "C" Pe ron t i -,c;. i oh t Amount I nde� 1 `, Earning Gasol ine .., Ci • 0 o 50 0. 1 x 1 0 riotar TrucK=- ., �. ��• General FurpO P r r yin :• an r -jam r e ,. 0.1_'.�••. ,_ -'0 0 Equ i omen t • ;-0 f=;Utamcrive Farts „ 0.(3 i:1•0:5� and Equipment �. �•: a b r i C a. truclur 1 _ p L��•�in Ct , 0 1 �� i-1 e :- :.1 Product," r - - _ All -i-her -CPI : L . " Long B� a��, r;nr.he im; �� = 4 0 0 -.1 x=,11 Item�1 �'•- TG i L Ra! -e increase ------------ r,.. •,1,71 .0000 Sc;ledule "C"