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Home My WebLink About01 SOLID WASTE ASSES. 08-01-94AGENDA DATE: JULY 12, 1994 NO. 1 8-1-94 Inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER FINANCE DEPARTMENT RESOLUTION #94-86 PLACING ASSESSMENT COLLECTION ON THE 1994-95 TAX ROLL FOR SOLID WASTE RECOMMENDATION: Adopt Resolution No. 94-86 which directs the Finance Director to place the charges for solid waste collection as detailed in the following discussion on the tax roll for Fiscal Year 1994-95. FISCAL IMPACT: None DISCUSSION: The attached correspondence from Great Western Reclamation (GWR) requests an adjustment as permitted by the franchise agreement in the solid waste collection fees for 1994-95. The calculated formula produces an adjustment of 4.7 percent or about $.50 per month per unit. Exhibits "A" through "F" support this request. Our fees have two components, the cost of collection and the cost of disposal representing approximately 45 percent and 55 percent respectively. The collection charge is allowed to increase by a weighted average increase based on seven individual cost categories supported by Exhibit "F". The numbers have been verified with the United States Department of Labor; Bureau of Labor Statistics and the 1.59 percent cumulative increase is appropriate. The disposal charges include the material recovery facility (MRF) processing costs and .the actual cost of disposal at the landfill. The County landfill did not increase for. the second year in a row but the MRF costs will increase by 4 percent. The two components combine for a total increase of 3.3 percent. The adjustments are detailed in Exhibit "A". Exhibits "C" and "D" support an additional adjustment in the disposal charges based on the actual disposal volumes and changes in the number of collection units during 1994-95 which is adjusted retroactively and reflected in the new rates. This $0.11 adjustment brings the total proposed increase for 1994-95 to 4.89 percent, or $0.50 per month per residential unit. Page 2 July 12, 1994 The proposed 94-95 residential rate is $11.11 the actual rate for 93-94 was $10.61 per month. However the proposed rate will actually represent an increase of $1.81 per month which is a result of City Council decision to reduce the 93-94 rate by applying the credit. This credit was a outcome of a prior year adjustment for actual tonnage collected versus estimates for the first year of data collection under the new AB 939 guidelines. The proposed rate of $11.11 per month is still very favorable when compared with the most recent study (attachment I) which indicates the county wide average is $12.34 per month and the median rate is $12.30 per month. Per the City Council's request, we have also included a Commercial Bin Survey (Attachment II), which indicates that the proposed 3 yard bin rate is at the average/median of the surveyed cities. (The commercial bin service and the commercial can rates are allowed to increase in relationship to the formula used to calculate the residential rate.) Ronald A. Nault Finance Director RAN:IH:is Attachments a P. ~ernande~ v u~/ /, ~ Administrative Assistant! a:trash~.95 ] 2 4 5 6 7 8 9 11 12 13 14 15 16 17 18 19 20 2] 22 23 24 25 26 27 28 RESOLUTION 94-86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ADOPTED PURSUANT TO THE PROVISIONS OF SECTION 5473 ET SEQ. OF THE HEALTH AND SAFETY CODE OF THE STATE OF CALIFORNIA, APPROVING AND ADOPTING A REPORT RELATIVE TO PARCELS OF REAL PROPERTY RECEIVING SOLID WASTE COLLECTION SERVICES, DETERMINING THE CHARGES FOR SOLID WASTE COLLECTION TO BE ASSESSED AGAINST THE RESPECTIVE LOTS OR PARCELS OF LAND AS THEY APPEAR ON THE CURRENT ASSESSMENT 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, 1994 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 1994-95 was prepared and filed with the City Clerk of the City of Tustin on July 14, 1994. B. 'That a public hearing to hear and consider all objections or protests, if any, to the aforesaid report and proposed charges were duly set for July 18 and August 1, 1994 at 7:00 o'clock p.m. in the Council Chambers of the City of Tustin at 300 Centennial Way, Tustin, California. C. Said hearings were duly noticed as required by law, by publication once each week for two successive weeks on July 7 and July 14, 1994 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 hearings were 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. 3 4 5 6 7 8 9 10 ll 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 28 Page 2 Solid Waste Resolution #94-86 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 1994-95 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 PASSED A_ND ADOPTED at a regular meeting of the City Council of the City of Tustin, California, held on the 1st day of Auqust , 1994. ATTEST: Thomas R. Mayor Saltarelli Mary Wynn City Clerk a:so[ (d~st.chg NOTICE OF FILING OF REPORT A_ND OF PUBLIC ~EARING 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 1994-1995, and the City Council has set July 18, and August 1, 1994 at 7:00 p.m. in the Tustin Council Chamber, located at 300 Centennial Way, Tustin, California, as the times and place when the City Council will hear and consider all objections or protests, if any, to the aforesaid report and proposed charges. If the report is adopted by the..City Ccuncil, ~he 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 o~ the City Clerk and is available for inspection during regular business hours. The City Ccuncil has authorized and directed the City Clerk to publish this notice once a week for two successive weeks, on July 7th, and July 14th, 1994 in the Tustin News, a newspaper of general circulation printed and published in the City of Tustin. Dated:/une 30 , 1994 a:hearing.p~b ~ry E. Wynn, City Clerk /~CT~of Tustin June 16, 1994 Mr. Ron Nault Director of Finance City of Tustin 15222 Del Arno Avenue Tustin, CA 92680 Dear Rom JUN 2 0 Following up on our discussion today, attached are 'six exhibits in support of our request for a rate adjustment effective 7/I/94 as provided under our contract with the City of Tustin. To summarize, the residential and commercial can rate increase amounts to $.50 per month or 4.7%. This is made up of 8C for hauling, 31C for MRF disposal and llC for a volume adjustment based on the actual pounds per home for 1993/94. The llC volume adjustment is temporary and goes away after 6/30/94. The commercial bin rate increase is made up of 1.59% for collection and 3.34~% for disposal and represents and overall average increase of 2.3%. I understand that Irma Hemandez and Jerry Fant will be meeting next week to finalize the residential unit count for the tax roll billing. In the meantime, if I can offer any further assistance, please let me 'know. Very truly yours, ---->--" -5' Alan D. Walsh Vice President/Controller AW241 End. cc: Ed Caliri CITY OF TUSTIN ADJUST TRASH COLLECTION RATES JULY 1, 1994 EXHIBIT E 10-Jun-94 ADJUSTMENT FACTORS COLL DISPOSAL CURRENT RATES COLL- DIS- CATEGOJ~Y ECTION POSAL .TOTAL PROPOSED RATES COLL- DIS- ECTION POSAL TOTAL 4 YD lX 42.53 16.99 59.82 2X 62.90 33,98 96.8§ 3X 82.90 50.98 133.88 4X 102.98 ' 67.97 170.95 5X 123.00 84.96 207.96 6X 143.00 101;94 244.94 YD 1X 57.54 25.49 83.03 2X 82.09 50.98 133.07 3X 106.69 76.46 153.15 4X 129.34 101.94 231.28 5X 153.94 127,43 281.37 6X 178.48 152.93 331.41 YD ~ 1X 59.94 33,98' 93.92 2X 89.75 67,97 157,72 3X 119.13 101.94 221.07 4X 148.78 135.92 284.70 5X 178.43 169.91 348.34 6X 208.05 203.99 412.04 43.51 17.56 61.07 63.90 35.12 99.02 84.22 52.68 138.90 104.62 70.24 174.86 124.96 87.80 212.76 145.28 105.35 250.62 58.46 26.34 84.80 83,40 52.68 136.08 108.39 79.01 187.40 131.40 105.35 236.75 156.39 131.69 288.08 181.32 158.04 339.36 60.89 35.12 96.01 91,18 70.24 161.42 121,03 105.35 226.37 151,15 140.45 291.61 161.27 175.59 356.86 211.36 210,81 422.17 RESIDENTIAL 4.85 5.76 10.61 COMMERCIAL CAN"' 5.27 5.76 11.03 4.93 6.18 11.11 5.35 6.18 11.53 The 1.0334 is the increase in the MRF processing cost divided by the current S/ton(S1.31;$39.21) °' 'the corer, ;rcial can r~te was adjusted in accordance wilh the method used residential. --e dispos~lcontinues to match the re=identialrate. CITY OF TUSTIN PROPOSED RESIDENTIAL RATE JULY 1, 1994 EXHIBIT B 1 O-Jun-94 RATE CALCULATION HAULING CHARGE DISPOSAL CHARGE ADJUSTED DISPOSAL CHARGE CURRENT PROPOSED S/UNIT/MO S/UNIT/MO INCREASE/ DECREASE 4.85 4.93 * 0.08 5.76 6.07 ** 0.31 N/A 0.11 *** 0.11 TOTAL RATE 10.61 11.11 0.50 * $4.85'X 1.0159(MODIFIED CPI) SEE ATTACHED 'COMPUTATION OF TRASH COLLECTION RATES - EXHIBIT F' ** 69.1 (ACTUAL POUNDS PER UNIT PER WEEK)X 52 WKS/12 MOS./2000 LBS. X $40.52 (PROPOSED MRF RATE/TON - EXHIBIT A) ALSO SEE ATTACHED EX~IEHT C 'ANALYSIS OF DISPOSAL CHARGES' *** ADJUSTED DISPOSAL CHARGE FOR JULY 1993 - JUNE 1994 SEE ATTACHED EXHIBIT D 'DISPOSAL RATE ADJUSTMENT' CITY OF TUSTIN ANALYSIS OF DISPOSAL CHARGE ACTUAL RESIDENTIAL VOLUME AND UNITS 1993/94 EXHIBIT C MONTH AND YEAR May 1993 June 1993 July 1993 August 1993 Septembe~ 1993 Oclober 1993 November 1993 December 1993 January 1994 February 1994 March 1994 April 1994 MRF Bulky Item Tc:al Total Tons/Unit Pounds/Unit TonnaQe_ Tonnaqe Ton~aqe Units Per Month Per Week 986.28 (14.22) -c 72-06 7,130 1062.81 (9.18) 1.C53.63 7.150 1.321.35 (12.90) 1.338.45~ 7.163 1.021.28 (12.54) 1.008.74 7.213 1.142.93 (7.57) 1.135.36 7.216 1.101.20 (8.12) 1,C93.08 7.232 1,041.70 (7.97) 1.033.73 7.258 1.203.10 ( 11.70) 1.191.40 7.264 938.60 (6.18) g32.42 7.267 936.30 (7.75) _c28.55 7.300 1.138.90 (5.96} 1.132.94 7.324 1,216.00 (6.08) 1,239.92 7,326 Totals 13 110 45 1110.17) Average ~ [9.18) ' 0.136 62.9 0.147 68.0 0.183 84.3 0.140 64.5 0.157 72.6 0.151 69.8 0.142 65.7 0.164 75.7 0.128 59.2 0.127 58.7 0.155 71.4 0.165 ?6.2 13,CC0.~8 86_.~843 .0.150 69.1 1,C-~3.36 ~ ,0.150 Pounds/UnitJWeek CITY OF TUSTIN DISPOSAL RATE ADJUSTMENT JULY 1, 1994 New Disposal Rate Charqe_ Add: Charge for Disposal Volume Increase during July 1, 1993 -- June 30, 1994 residential waste generation Actual Pounds/unitlweek(JULY 1992 - MAY 1993} Actual Pounds/unit/week(MAY 1993 - APRIL 1994) Undercharge of Waste Generation Charge for Disposal Volume Increase during 1993-94 (1.3 lbs. x 4.33 weeks/2,000 lbs/ton x $39.21/ton} Adjusted Disposal Charge for July 1, 1994 67.8 lbs. 69.1 lbs. 1.3 lbs. E_X_ ½T.9 I_T_p lO-Jura-B4 $6.07 $0.11 $6,18 CITY OF TUSTIN MRF PROCESSING COSTS JULY 1, 1994 EXHI ~IT^ lO-Jun -94 Current July I st Proposed COSTS S/Ton Increase S/Ton Handling and Hauling to Landfill Disposal at Landfill Processing for Recovery Total Cost SAVINGS Materials Revenue Diverted Disposal Cost Total Savings $16.43 $0.66 * $17.09 $22.75 $0.00 ** $22.75 $16.22 $0.65 * $16.87 .$55.40 ~;1.31 $56.71 (st o.5o) $o.oo ($5.69) $0.00 ~($16.19) ~;0.00 ($10.50) ($5.69) .($16.19) Net Cost -$39.21 $1.31 .$40.52 - Per section 5 of the Amendment to the agreement, Contractor is allowed an adjustmedt 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 1.4%. Since this falls below the contract floor increase of 4%, we therefore request 4%. ** -No Disposal increase has been imposed by the County of Orange. CITY OF TUSTIN COMPUTATION OF TRASH COLLECTION RATES JULY 1, 1994 10-Jun-94 CATEGORY/ SOURCE T~ME CONTRACT PERIOD PRIOR NEW % WEIGHT AVERAGE HOURLY EARNINGS/ LOCAL 390 WAGES GASOLINE~ CPI (UNADJ~ US CITY AVG ALL URBAN CONSUMERS (SS4701A) MOTOR TRUCKS/ PPI CODE 141106 GENERAL PURPOSE MACH & EQUIP/ PPI CODE 114 AUTOMOTIVE PARTS & EQUIP/ PPI CODE 116605 FABRICATED METAL PRODUCTS PPI CODE 107 ALL OTHER CPI LA/LONG BEACH/ANAHEIM (UNADJUSTED) ALL URBAN CONSUMERS, ALL ITEMS APR 1993/94 I 1.05 11.3.0 2.3% APR 1903/94 98.2 04.3 --4.0% APR I gg3/94 133.2 141.1 5.0% APR 1993/94 131.7 134.5 2.1% (Revised) APR 1993/94 120.5 I ~9.2 0.5% APR 1993/94 122.7 125.6 2.4% {Revised) APR 1993/94 149.90 152.00 1.4 % TOTAL SOURCE: US DE[PT OF LABOR; BUREAU OF LABOR STATISTICS 213-252-7521 0.3300 0.75% 0.0900 -0.36% 0.065 0.30% 0.1325 0.28% 0.0225 0.01% 0.02 0.05% 0.3400 0.48% 1.000 1,59% ATTACHMENT I Westminster Laguna Beach La Palina La Habra lrvine Tustin (proposed) Fullerton Bu'ena Park Orange Newport Beach Dana Point Stanton Brea Costa Mesa Seal Beach Garden Grove Los Alamitos Placentia Santa Aha Anaheim Cypress Mission Viejo Laguna Niguel San Clemente Villa Park Yorba Linda San Juan Capistrano Lake Forest Laguna Hills Orange County Unincorporated Huntington Bch Fountain Valley County Average $12.34 Median Rate $12.30 * Special District Tax Rate ** Internal Charge to Enterprise Fund *** Average Rate for Single Family Residential 8.60 * 9.75 10.32 10.56 10.97 11.11 11.15 11.19 11.48 11.55 ** 11.77 *** 11.85 11.94 12.03 * 12.25 12.30 12.56 12.60 12.82 12.86 12.86 13.20 13.25 13.25 13.45 13.52 13.60 *** 13.78 13.86 13.96 15.20 15.20 Source: City of Irvine/Santa Ana Survey 6/94 on 94-95 rates ATTACHMENT II COMMERCIAL (3 CUBIC YARD) Cl~ 1X 2X 3X 4X 5X 6X ANAHEIM $99.50 $146.00 $192.00 $239.00 $285.50 $332.00 BUENA PARK $85.24 $148.29 $211.39 $274.38 $337.42 $447.00 CYPRESS $105.74 $155.25 $201.50 $250.00 $299.78 $347.03 FOUNTAIN VALLEY $96.97 $149.45 $207.79 $250.09 $319.31 $374.50 GARDEN GROVE $90.00 $137.50 $185.00 $232.50 $280.00 $327.50 HUNTINGTON BEACH $98.88 $150.88 $204.54 $242.14 $309.57 $362.55 LA PALMA $93.53 $159.40 $225.72 $291.59 $357.86 $422.88 LOS ALAMITOS $94.93 $136.87 $179.58 $224.25 $282.91 $313.57 PLACENTIA $92.51 $151.09 $209.67 $268.25 $326.83 $385.41 STANTON $87.60 $138.70 $189.81 $240.91 $292.01 $343.12 I TUSTIN $84.80 $136.08 $187.40 $236.75 $288.08 $339.36 SANTA ANA $83.01 $143.38 $203.74 $264.11 $324.47 $410.03 IRVlNE $78.00 $121.00 $166.00 $209.00 $255.00 $300.00 ORANGE $74.00 $113.26 $154.22 $224.58 $266.37 $311.53 BREA $88.17 $145.98 $203.79 $261.16 $319.41 $377.22 GARDEN GROVE $90.00 $137.50 $185.00 $232.50 $280.00 $327.50 LAGUNA BEACH $85.00 $125.00 $160.00 $199.00 $237.00 $273.00 LAKE FOREST $73.53 $103.87 $1 34.16 $164.48 $194.78 $225.09 MISSION VIE JO $68.52 $99.09 $129.65 $160.21 $190.77 $221.22 tAVERAGE $87.89 $136.77 $185.84 $234.99 $286.69 $338.97 Source: City of StantonfTustin Survey