HomeMy WebLinkAboutPH 3 SOLID WASTE RPT 08-02-93AGENDA
PUBLIC HEARING NO. 3
8-2-93
uATE:
JULY 29· ].993
Inter-Corn
TO: WILL1'~[ A. HUSTON, CITY IG~AGER
FROM: RON&LD A. NAULT, DIRECTOR OF FIN2kNCE
SUBJECT: RESOLUTION NO. 93-78 ADORING THE ].993-94 SOLID WASTE
COLLECTION 2MiISESSMENT REPORT AND CONSIDEI~,TION OF A PROPOSED
RECOMMENDATION:
Pleasure of the City Council.
FISCAL IMPACT:
No fiscal impact on the City.
DISCUSSION=
Staff has been presented with a proposal by Great Western
Reclamation (GWR) that offers to reduce the 1993-94 solid waste
collection rates for residential and commercial can units and
· freeze commercial bin service in consideration of a two year
extension of the current Agreement (including elimination of the
current option to extend the Agreement). This discussion will
first address the potential increase in the rates under the current
contract and then, follow with a brief explanation of the proposed
contract amendment.
The rates for solid waste collection are made up of three
components; the collection charge, the disposal charge and the
Material Recovery Facility (MRF) charge. Pursuant to the Franchise
Agreement, each component is allowed to adjust annually .based on
the weighted average of seven separate cost categories which are
verified by the Federal Bureau of Labor Statistics. See Exhibit
"F" for the current adjustment calculations.
The disposal charge is a direct pass through of the County land
fill charges. For the second year in a row the County has not
raised their land fill disposal charges so that there will not be
an increase in that component this year.
Page 2
Solid Waste
July 29, 1993
The MRF charge is allowed to adjust annually by the Consumer Price
Index (CPI), with afour percent minimum and seven percent maximum.
See exhibit "A" for the current years adjustments. MRF and land
fill charges are combined under the heading of disposal as shown on
Exhibit "E" which details all the adjusted rates for 1993-94.
Based on these rate components, the residential collection charge
could increase by $0.09 per unit per month and the disposal charge
could increase by $0.44 per unit per month for a total increase of
$0.53 per month, or $6.36 for the fiscal year 1993-94. In
addition, this year there will be an increase in the disposal
charge of $0.28 per unit per month to compensate GWR for an
increase in the actual tonnage collected and processed at the MRF.
This brings the monthly increase to $0.81 per unit. ($9.72 for the
year), which is an increase of 7.4 percent.
We are again proposing an additional $0.10 per unit to offset
collection delinquencies. Since residential disposal charges are
collected through the property tax bill, it is necessary to have
funds available to cover the estimated amount of delinquencies due
to non-payment of property taxes. The $0.10 should generate about
$8,400 per year to help offset delinquencies which are currently
running at about two percent. In subsequent years as we recover
the delinquencies, this amount will be adjusted based on the status
of total collections.
In prior years we have also collected $0.15 per unit for the public
information cost of the City's recycling program as required by AB
939 and detailed in the City's Source and Recovery Recycling
Element (SRRE). We have sufficient funds available to continue
this program through 1993-94 so we will not be adding this to the
rate for the coming year.
As of June 30, 1993 the available credit from last years refund
from GWR relating to the actual tonnage collected is $114,733.
Based on the current residential unit count, a credit of $1.31 per
month may be applied to each residential and commercial can unit
for the 1993-94 fiscal yearl As an option, the City Council could
apply the credit over two or three years. The following are the
monthly credits given one, two or three years:
Page 3
Solid Waste
July 29, 1993
CURRENT
&GREEHBNT
YR 1 YR 2 YR 3
OPTION 1 $1.31
OPTION 2 $0.70 $0.61
OPTION 3 $0.70 $0.31 $0.30
G~R PROPOSED
~EI~NENT
OPTION 1 $1.31
OPTION 2 $0.65
OPTION 3 $0.44
$0.65
$0.44
$0.43
The amounts shown above vary between the current agreement and
GWR's proposed amendment because the base collection rate affects
the amount of credit that can be given in any one year.
GREAT WESTERN REC~TION ~,LTERN~TIVE PROPOSAL:
Per the attached letter, Great Western Reclamation is proposing to
reduce the residential and commercial can collection rate by $0.05
per month effective July 1, 1993 and freeze commercial bin rates at
the 1992-93 rates for one year. This offer is predicated upon
amending the contract to eliminate the present "evergreen"
automatic annual rollover provision, which always leaves five years
remaining on the contract term and substituting in its place a
fixed term of seven years (no rollovers).
Also, attached is a summary of a monthly residential refuse rate
survey recently completed by Orange County Integrated Waste
Management. The results of this survey indicate that all of the
alternative rates will fall below the County wide median and
average rate.
Page 4
Solid Waste
July 29, 1993
The City Council's actions would be: 1.) to amend the Solid Waste
Collection Assessment Report to conform with whichever rate
alternative is selected and adopt Resolution #93-78; 2.) to approve
amendment of the Agreement for Collection and Transportation of
Solid Waste Refuse Produced or Accumulated in the City of Tustin by
and between the City of Tustin and Great Western Reclamation, Inc.
dated December 19, 1988, as amended June 19, 1991 and September 15,
1992, as proposed by the letter from Great Western Reclamation,
Inc. to the City of Tustin dated July 19, 1993, and authorize the
Mayor and City~ to execute such amendment in form approved
by the City Manager/and City Attorney.
Ronald A. Nault
Director of Finance
Attachments
·: prpos [~. gwr
Great Western Reclamation, Inc.
1800 S. Grand Avenue
Santa Aha, California 92?05
'z-~4/558-~61
A Waste Management Company
July 19, 1993
Mr. Bill Huston
City Manager
CITY OF TUSTIN
15222 Del Arno Avenue
Tustin, CA 92680
Re:
City of Tustin Solid Waste Collection and Recycling Agreements
Dear Bill:
Pursuant to our conversations in the last few days, I would like to summarize the proposal
now being made by Great Western Reclamation, Inc. ("GW") to the City of Tustin
regarding an amendment to its current residential and commercial collection and recycling
agreements. GW is making the following proposal:
A. RESIDENTIAL:
The current service rate is $10.66 per month. This is now broken down as follows:
$5.34 - hauling
$5.32 - disposal
GW was entitled on July 1, 1993 to a $0.09 increase in the hauling rate and a $0.44
increase in the disposal rate by reason of the Consumer Price Index adjustments in the
current agreements. In addition, GW is entitled to a $0.28 increase in the combined rate
by reason of actual tonnage adjustments for the past year. The net result is that GW is
entitled to increase its rate from $10.66 to $11.47 per month as of July 1, 1993.
GW is proposing, instead, to reduce the total rate to $10.61, which is a savings of $0.86
per house per month. This 7.5% rate reduction will cost GW $6,022 per month in gross
revenues the first year or a total of $294,400 over five years.
B. COMMERCIAL:
In return for the same two year term extension referred to above, GW is proposing to
freeze all of its current commercial service rates at their existing levels for an additional
year, i.e., until June 30, 1994. This freeze will cost GW $7,560 per month in gross
revenues the first year or a total of $504,300 over five years.
Mr. Bill Huston
Page 2
In return for the rate concessions deScribed above, GW is asking that the existing five
year contract term be extended an additional two years for a total of seven years, ending
on June 30, 2001. The current evergreen language and provision is to be eliminated.
Five pages of schedules illustrating and justifying the above summary have already been
submitted to the City of Tustin via Ron Nault, the Finance Director. Ron has already
reviewed and approved those numbers. A copy of those schedules is enclosed herewith
for your edification.
If you need any other .information, please do not hesitate to call me.
Sincerely,
David W. Ross ~
Division President and General Manager
ross:huston4.1tr
EXHIBIT A
CITY OF TUSTIN
MRF PROCESSING COSTS
JULY 1, 1993
COSTS
Handling and Hauling to Landfill
Disposal at Landfill
Processing for Recovery
Total Cost
SAVINGS
Materials Revenue
Diverted Disposal Cost
Total Savings
Net Cost $37.96
Current July 1st Proposed
. S/Ton Increase S/Ton
$15.80 $0.63 * $16.43
$22.75 $0.00 ** $22.75
$15.60 $0.62 * $16.22
~54.15 $1.25 ~55.40
($10.50) $0.00
($5.69) $0.00
{$16.19) $0.00
($1o.5o)
($5.69)
{$16.19)
$39.21
- Per section 5 of the Amendment to the agreement, Contractor is
allowed an adjustment to the MRF charges for changes in the Consumer
Price Index for all Urban Consumers, for Los Angeles - Anaheim -
Riverside CMSA. The April - April index is 2.8%. Since this falls
below the contract floor increase of 4%, we will use 4%.
** -No Disposal increase has been imposed by the County of Orange.
EXHIBIT B
CITY OF TUSTIN
PROPOSED RESIDENTIAL RATE
JULY 1, 1993
RATE CALCULATION
HAULING CHARGE
DISPOSAL CHARGE
ADJUSTED DISPOSAL CHARGE
CURRENT PROPOSED INCREASE/
S/UNIT/MO S/UNIT/MO DECREASE
5.34 5.43 * 0.09
5.32 5.76 ** 0.44
N/A 0.28 *** 0.28
TOTAL RATE 10.6~6 11.47 0.8'1
* $5.34 X 1.0171(MODIFIED CPI) SEE ATTACHED
'COMPUTATION OF TRASH COLLECTION RATES'
** 67.8 (ACTUAL POUNDS PER UNIT PER WEEK)X 52 WKS/12 MOS./2000 LBS. X
$39.21 (PROPOSED RATE/TON)
SEE ATTACHED EXHIBIT C 'ANALYSIS OF DISPOSAL CHARGES'
*** ADJUSTED DISPOSAL CHARGE FOR JULY 1992 - JUNE 1993
SEE ATTACHED EXHIBIT D 'DISPOSAL RATE ADJUSTMENT'
CITY OF TUSTIN
ANALYSIS OF DISPOSAL CHARGE
ACTUAL RESIDENTIAL VOLUME AND UNITS
JULY 1993
EXHIBIT C
MONTH AND YEAR
July 1992
August 1992
September 1992
October 1992
November 1992
December 1992
January 1993
February 1993
March 1993
April 1993
May 1993
MRF Bulky Item Total Total
Tonnaqe Tonnaqe Tonnage Units
1,234.15 (9.65) 1,224.50 7,031
963.45 0.00 963.45 7,048
935.22 0.00 935.22 7,052
1,092.15 0.00 1,092.15 7,062
1,030.15 0.00 1,030.15 7,068
1,011.98 (2.72) 1,009.26 7,077
1,112.56 (9.79) 1,102.77 7,086
901.14 (5.07) 896.07 7,093
992.22 (18.91) 973.31 7,104
1,253.58 (6.65) 1,246.93 7,117
986.28 (14.22) 972.06 7,130
Totals 11,51 2.88 {67.01 ) 11,445.87 77,868
Average
1,046.63 {6.09) 1,040.53 7,078.91..
Tons/Unit Pounds/Uni~
Per Month Per Week
O. 174 80.4
0.137 63.1
0.133 61.2
0.155 71.4
O. 146 67.3'
0.143 65.8
0.156 71.8
0.126 58.3
0.137 63.2
0.175 80.9
0.136 62.9
0.147 67.8
0.147 67.8
Pounds/Unit/Week
67.~8
CITY OF TUSTIN
DISPOSAL RATE ADJUSTMENT
JULY 1993
EXHIBIT D
New Disposal Rate Charge
Add: Charge for Disposal Volume Increase during
July 1, 1992 - June 30, 1993
residential waste generation
Actual Pounds/unit/week(JULY 1991 - JUNE 1992)
Actual Pounds/un~eek(JULY 1992 - MAY 1993)
Undemharge of Waste Generation
Charge for Disposal Volume Increase during 1992-93
(3.4 lbs. x 4.33 weeks/2,000 lbs/ton x $37.96/ton)
64.4 lbs.
67.8 lbs.
3.4 lbs.
$5.79
$0.28
Adjusted Disposal Charge for July 1, 1993 :~6.07
CITY OF TUSTIN
ADJUST TRASH COLLECTION RATES
JULY 1, 1993'
EXHIBIT E
ADJUSTMENT FACTORS
COLL
1.0171
DISPOSAL
1.0329
CURRENT RATES
COLL- DIS-
CATEGORY ECTION POSAL TOTAL
PROPOSED RATES
COLL-
ECTION
DIS-
POSAL
TOTAL
2 YD
lX 43.37 16.45 59.82
2X 63.98 32.90 96.88
3X 84.53 49.35 133.88
4X 105.15 65.80 170.95
5X 125.71 82.25 207.96
6X 146.28 98.69 244.97
3 YD
lX 58.35 24.68 83.03
2X 83.72 49.35 133.07
3X 109.13 74.02 183.15
_ 4X 132.59 98.69 231.28
:X 158.00 123.37 281.37
.~X 183.36 148.05 331.41
4 YD
I X 61.02 32.90 93.92
2X 91.92 65.80 157.72
3X 122.38 98.69 221.07
4X 153.11 131.59 284.70
5X 183.85 164.49 348.34
6X 214.55 197.49 412.04
44.11
65.08
85.98
106.95
127.86
148.78
59.35
85.15
111.00
134.86
160.7O
186.5O
62.06
93.49
.124.47
155.73
187.00
218.22
16.99
33.98
50.98
67.97
84.96
101.94
25.49
50.98
76.46
101.94
127.43
152.93
33.98
67.97
101.94
135.92
169.91
203.99
61.10
99.06
136.95
174.92
212.82
250.72
84.84
136.13
187.46
236.80
288.14
339.42
96.05
161.46
226.41
291.65
356.90
422.22
RESIDENTIAL 5.34 5.32 10.66
COMMERCIAL CAN** 5.76 5.32 11.08
5.43
5.85
6.04
6.04
11.47
11.89
* The 1.0329 is the increase in the MRF processing cost divided by the current
S/ton ($1.25/$37.96)
** The commercial can rate was adjusted in accordance with the method used for
residential. The disposal continues to match the residential rate and the
' collection program of the charge remains at $.42 above the residential rate.
TABLE OF
RATE OPTIONS
Residential
I Current Proposed
Monthly Monthly
$10.66 Hauler $11.47
$0.10 Delinquent $0.10
$0.15 AB 939 $0.00
Commercial Can
Current Proposed
Monthly Monthly
$11.08 Hauler $11.89
$0.10 Delinquent $0.10
$0.15 AB 939 $0.00
$10.91 $11.57 $11.33 $11.99
Residential
I Current Proposed
Monthly Monthly
$10.66 Hauler $10.61
$0.10 Delinquent $0.10
$0.15 AB 939 $0.00
Commercial Can
I Current Proposed
Monthly Monthly
$11.08 Hauler $11.03
$0.10 Delinquent $0.10
$0.15 AB 939 $0.00
$10.91 $10.71 $11.33 $11.13
NOTE: The available crexh't of $114, 733 will be applied to either option
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RESOLUT'rON 93- 78
A RESOLUTTON OF THE CTTY COUNCTL OF THE CTTY OF TUSTTN,
CAL1'FORNTA· ~O~ED PURSUANT TO THE PROVTSTONS OF
SECTTON 5473 ET SEQo OF THE HEALTH ~ Si~FETY CODE OF
THE STATE OF CALTFORN'rAt APPROVING ~ ~DOPTTNG A
REPORT REL~T'rVE TO P~RCELS OF REAL PROPERTY RECETV'rNG
SOLID WASTE COLLECT'tON SERV'rCES · DETERI~TNTNG THE
CHARGES FOR SOLID Wi~STE COLLECT:tON TO BE ASSESSED
AGA'rNST THE RESPECT'rVE LOTS OR P~CELS OF ~ AS THEY
APPEAR ON. THE. CURRENT ASSESSI(ENT ROLL.
The City Council of the City of Tustin does hereby resolve
as follows:
1. That proceedings were duly instituted, conducted and
completed pursuant to provisions of Section 5473 et seq. of the
Health and Safety Code of the State of California.
A. A written report dated July, 1993 containing a
description of each parcel of real property receiving solid waste
collection services and facilities and the amount of the charge
proposed to be levied upon each parcel for the collection of solid
waste for the fiscal year 1993-94 was prepared and filed with the
City Clerk of the City of Tustin on July 15, 1993.
B. That a public hearing to hear and consider all
objections or protests, if any, to the aforesaid report and
proposed charges was duly set for August 2, 1993 ~at 7:00 o'clock
p.m. in the Senior Center of the City of Tustin at 200 South "C"
Street, Tustin, California.
C. Said hearing was duly nOticed as required by law, by
publication once each week for two successive weeks on July 22,
and July 29, 1993 in the Tustin News, a newspaper of general
circulation printed and published in the City of Tustin.
D. At the aforesaid time and place the duly noticed
hearing was held and all persons who were present were heard and
all comments, objections and protests to the aforesaid report and
proposed charges were duly heard and considered by the City
Council.
E. The charges proposed in the aforesaid report are fair
and reasonable, are commensurate with the services provided, and
the charge therefore should properly be collected on the tax roll
in the same manner, by the same persons and at the same time as,
together with and not separately from, general taxes.
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Page 2
Sol id Waste Resolution
#93-78
2. The City Council hereby elects to have the charges set
forth in the aforesaid report collected on the tax roll in the
same manner, by the same persons, at the same time as, and
together with and not separately from its general taxes and
hereby authorizes that such charges be collected on the tax roll,
as all prescribed to the provisions of Health and Safety Code
Section 5473 et seq.
3. The resolution shall be effective following its
adoption by a two-thirds vote of the members of the City Council
and shall remain in force and effect and said charges shall be
collected in the manner as aforesaid for the year 1993-94 and
for each subsequent year as authorized by the hereinabove
referenced sections of the Health and Safety Code.
4. The City Clerk is authorized and directed to forthwith
file a certified copy of this Resolution with the Auditor of the
County of Orange, together with a copy of the hereinabove-
described report, and a statement endorsed thereon over her
signature that the said report has been finally adopted by the
City Council of the City of Tustin.
PA~BED AND ADORED at a regular meeting of the City
Council'of the City of Tustin, California, held on the 2nd
day of Auqust , 1993.
Jim Potts, Mayor
ATTEST:
Mary Wynn
City Clerk
City of Tustin
a:sot ic~st.chg
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STATE OF CALIFORNIA)
COUNTY OF ORANGE) SS
CITY OF TUSTIN)
CERTIFICATION FOR RESOLUTION NO. 93-78
Mary E. Wynn, City Clerk and ex-officio Clerk of the City
Council of the City of Tustin, California, does hereby
certify that the whole number of the members of the City
Council is five; that the above and foregoing Resolution was
duly and regularly passed and adopted at a regular meeting
of the City Council held on the 2nd day of August, 1993
by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Mary E. Wynn, City Clerk
~:cert i fy. res
San Juan Capistrano 15.80 ***
Brea 14.49
Orange County Unincorporated 13.96
La Palina 13.87
Anaheim 13.86
Lake Forest 13.78
Dana Point 13.25
Laguna Niguel 13.25
San Clemente 13.25
Villa Park 12.85
Yorba Linda 12.85
Seal Beach 12.75
Mission Viejo 12.61
Huntington Bch 12.00
Fountain Valley 12.00
Placentia 11.98
Los Alamitos 11.96
Cypress 11.87
Stanton 11.85
Garden Grove 11.22
Newport Beach 11.02 **
La Habra 10.56
Orange 10.50
Buena Park 10.12
Irvine 9.92
Fullerton 9.75
Laguna Beach 9.39
Santa Ana 8.70
Westminster 8.16 ' *
Costa Mesa 6.68 *
County Average $11.81
Median Rate $12.00
* Special District Tax Rate
** Internal Charge to Enterprise Fund
*** Rate for Single Family Residential
Source: Orange County Integrated Waste Management Survey 7/93
h~nance Depar,men,
City Of Tustin
!5222 Del Amc A,,,enue
Tus:~r',. ~.A 92680
- ~:" 5-:.:.:-8890
FAX ,'.-'~: ~.32-0525
NOTICE OF FILING OF REPORT
AND OF
PUBLIC HEARING
Pursuant to the provisions of Section 5473, et seq. of the Health
and Safety COde of.the State of California, the City Council of the
City of Tustin has authorized and directed the preparation of a
written report containing a description of each parcel of real
property receiving solid waste collection services and facilities
and the amount of the charge proposed to be levied upon each parcel
for the collection of solid waste for the fiscal year 1993-1994,
and the City Council has set August 2, 1993 at 7 o'clock p.m. in
the Tustin Area Senior Center, located at 200 South "C" Street,
Tustin, California, as the time and place when the City Council
will hear and consider all objections or protests, if any, tc the
aforesaid report and proposed charges. If the report is adopted by
the City Council, the charges will be placed on the tax roll and
collected in the same manner, by the same persons and at the same
time as general property taxes. A copy of said report is on file
.in the office of the City Clerk and is available for inspection
during regular business hours.
The City Council has authorized and directed the City Clerk to
publish this notice once a week for two successive weeks, on July
22, and July 29, 19R3 in the Tustin News, a newspaper of general
circulation printed and published in the City of Tustin.
Dated~ .~.
a:hearin$.pub
, 1993
,/~.~M~ry E. Wynn, City Clerk
/ City of Tustin