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HomeMy WebLinkAboutResolution 2018-069 N.C.S. 05/07/2018Resolution No. 2018-069 N.C.S. of the City of Petaluma, California ADOPTING MAXIMUM REFUSE AND RECYCLING RATES FOR FISCAL YEARS 2019 THROUGH 2024 PURSUANT TO THE FRANCHISE AGREEMENT BETWEEN THE CITY OF PETALUMA AND RECOLOGY SONOMA MARIN FOR SOLID WASTE, RECYCLABLE MATERIALS AND YARD TRIMMINGS SERVICES WHEREAS, Section 8.16.040 of Title 8 of the Petaluma Municipal Code (PMC) provides that the City Council may provide for the collection and disposal of garbage and rubbish in and from the city by its own officers and employees, or by an official garbage collector pursuant to a contract therefore, or by or for the person accumulating the garbage or rubbish in the city, pursuant to a permit granted by the Council; and WHEREAS, the City of Petaluma has, pursuant to Ordinance No. 2636 N.C.S. adopted December 18, 2017 assigned the City's Franchise Agreement for Solid Waste, Recyclable Materials and Yard Trimmings Services ("Franchise Agreement") to Recology Sonoma Marin for the collection of solid waste, recycling, and compost materials; and WHEREAS, in adopting Ordinance 2636 N.C.S. the City Council determined that trash capture costs under the City's MS4 permit program to be a property related cost of providing refuse services in the City that is properly recovered through refuse and recycling rates; and WHEREAS, in accordance with Section 9.2.1 of the Franchise Agreement, the City shall establish the maximum rates and fees that the franchisee may charges customers for collection services pursuant to the franchise; and WHEREAS, in accordance with Section 10.2 of the Franchise Agreement, the franchisee shall receive annual adjustments to the City -Approved maximum service rates through RRI adjustments; and WHEREAS, the City retained R3 Consultants to develop and review a revised Refuse Rate Index calculation to assist in setting maximum Refuse and Recycling Rates that include the Trash Capture Fee; and WHEREAS, notice of a public hearing on the proposed revised maximum Refuse and Recycling Rates and change in the RRI was mailed to Recology Sonoma Marin customers and record owners of properties that would be impacted by the proposed increases on March 21, Resolution No. 2018-069 N.C.S. Page 1 2018, 45 days or more before the requisite public hearing in accordance with Proposition 218 requirements; and WHEREAS, pursuant to Proposition 218, the City has duly noticed and held a public hearing on the proposed maximum rate increases May 7, 2018 with respect to the maximum rates for fiscal years 2019 through 2024; and WHEREAS, at the public hearing on the proposed maximum rate increases on May 7, 2018, the City Council received testimony and considered all evidence ("the Record") presented regarding the proposed maximum rate increase, including all protests received, and canvassed and tabulated the protests received prior to the close of the public hearing; and WHEREAS, the trash capture program cost estimates and RRI calculation resulting from the R3 consultants rate review are contained in Attachments 3 and 4 to the staff report accompanying this resolution which are hereby made a part of this resolution; and WHEREAS, after due consideration, the City Council finds based on Attachments 3 and 4 and the Record that: (1) The proposed maximum rates as set forth in Exhibit A to this resolution which is made a part hereof and the RRI as presented in Attachment 4 are necessary to achieve full recovery of the costs of providing solid waste services to residents and businesses in Petaluma; (2) The proposed maximum rates and RRI as presented herein will not generate revenue in excess of the cost of providing solid waste services; (3) The proposed maximum rates and RRI as presented herein will not be used for purposes other than providing solid waste services; (4) The proposed maximum rates and RRI, to the extent the City's solid waste franchisee may impose them on any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel or person; (5) Proper notice of the proposed maximum rates and RRI was given to record owners of properties that could be impacted by the proposed maximum rate increases and to recipients of City solid waste services, as prescribed by law; and WHEREAS, a majority protest was not received before the close of the public hearing, as confirmed by the City Cleric's announcement of the canvass of protests received which totaled three (3) protest votes received for the same number of parcels out of a total of 20,708 parcels served; and WHEREAS, the proposed maximum rates and RRI are not a "tax" as defined in Section 1, paragraph (e) of Article XIII C of the California Constitution ("Proposition 26") because such Resolution No. 2018-069 N.C.S. Page 2 rates are imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the local government of providing the service or product; and/or such fees and charges are imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the local government of providing the service or product; and/or such fees and charges are imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof, and/or such fees and charges are imposed as a condition of property development; and WHEREAS, adoption of the maximum rates and RRI pursuant to this resolution involves the establishment, modification, restructuring or approval of rates and charges, as identified Exhibit A and Attachments 3 and 4, and therefore, adoption of this resolution setting maximum refuse and recycling rates and RRI is not a project under the California Environmental Quality Act pursuant to California Public Resources Code Section 21080(b)(8)(D) and 14 Cal. Code Regs. Section 15273; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma as follows: 1. The above recitals are hereby declared to be true and correct and incorporated herein as findings of the City Council. 2. Having considered the foregoing and good cause appearing therefore, the City Council hereby approves of the maximum rates as set forth in Exhibit A for the collection, processing, and disposal of solid waste, recycling, and composting materials for commercial, multifamily, and single family customers, that Recology Sonoma Marin, the City of Petaluma franchisee may charge for solid waste services for within the City of Petaluma for fiscal years 2019 through 2024 and for supplemental services pursuant to the franchise agreement between the City and Recology Sonoma Marin. 3. Having considered the foregoing and good cause appearing therefore, the City Council hereby approves of the estimated trash capture costs set forth in Attachment 3 and the RRI as set forth in Attachment 4 for adjusting the maximum rates set forth in Exhibit A concerning the maximum rates that Recology Sonoma Marin, the City of Petaluma franchisee may charge for solid waste services within the City of Petaluma for fiscal years 2019 through 2024 and for supplemental services pursuant to the franchise agreement between the City and Recology Sonoma Marin. Resolution No. 2018-069 N.C.S. Page 3 4. If any section, subsection, sentence, clause, phrase or word of this resolution is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state or federal legislation, such decision or legislation shall not affect the validity of the remaining portions of this resolution. The City Council hereby declares that it would have passed and adopted this resolution and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. REFERENCE: AYES: NOES: ABSENT: ABSTAIN: ATTEST Under the power and authority conferred upon this Council by the Charter of said City. I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 7`h day of May 2018, by the following vote: Barrett, Mayor Glass, Vice Mayor Healy, Kearney, King, Miller None Albertson None + t 4Cilerk as to City Mayor Resolution No. 2018-069 N.C.S. Page 4 Exhibit A Petaluma Refuse & Recycling - Rates Effective 7/1/2108 (f) Exhibit la: CITY -APPROVED MAXIMUM SERVICE. RATES SINGLE-FAMILY RESIDENTIAL SERVICES A. RESIDENTIAL CART SERVICE Garbage Cart Sizes (gallons) 20 35 65 95 1 Monthly Curbside Rate $ 10.16 $ 17.99 $ 34.11 $ 56.27 2 Monthly Curbside Rate - Lifeline $ 7.60 $ 13.50 $ 25.57 N/A 3 Extra Pickups $ 2.53 $ 4.49 $ 8.53 $ 14.07 B. ADDITIONAL BULKY ITEM PICKUP 1 Bulky Item Pickup $ 36.88 For 2 items less than 100 pounds 2 Bag $ 4.49 each 3 Collection of Large ItemsContaining Freon $ 36.88 For each item C. ADDITIONAL CART REPLACEMENT Cart Replacement $ 13.40 Each replacement in addition to one per year at no additional cost Exhibit 1 b: CITY -APPROVED MAXIMUM SERVICE RATES COMMERCIAL AND MULTI -FAMILY RESIDENTIAL SERVICES Mixed Materials Collection (includes Recyclable Materials Collection) Collection Frequency Container Size Ix / week 2x / week 3x / week 4x / week 5x / week 6x / week Clean Up Bin/ 7-dav Rental 35 -gallon Cart $ 31.56 N/A N/A N/A N/A N/A N/A 68 -gallon Cart $ 54.86 N/A N/A N/A N/A N/A N/A 95 -gallon Cart $ 78.22 N/A N/A N/A N/A N/A N/A 1.5-CY Bin $ - $ 440.61 $ 628.07 $ 762.56 $ 1,056.64 $ 1,286.78 $ 133.58 2-CYBin $ 313.87 $ 532.64 $ 742.87 $ 1,081.54 1 $ 1,379.12 $ 1,479.82 $ 156.92 3-CY Bin $ 419.95 $ 721.85 $ 1,187.38 $ 1,601.84 $ 2,033.62 $ 2,495.14 $ 209.97 4-CY Bin $ 461.39 $ 888.41 $ 1,336.98 $ 1,814.50 $ 2,314.53 $ 2,836.28 $ 230.70 6-CY Bin $ 631.45 $ 1,073.84 $ 1,668.69 $ 2,264.62 $ 2,889.18 $ 3,709.08 $ 315.71 Foodwaste/Organics Collection Collection Frequency Container Size Ix / week 2x / week 3x / week 4x / week 5x / week 6x / week Clean Up Bin/ 7 -day Rental 35 -gallon Cart $ 23.67 N/A N/A N/A N/A N/A N/A 68 -gallon Cart $ 41.16 N/A N/A N/A N/A N/A N/A 95 -gallon Cart $ 58.67 N/A N/A N/A N/A N/A N/A 1.5-CY Bin $ 200.37 $ 330.45 $ 471.04 $ 571.92 1 $ 792.47 $ 965.10 NA 2-CY Bin $ 235.40 $ 399.48 $ 557.17 $ 811.17 $ 1,034.35 $ 1,107.10 NA 3-CYBin $ 314.95 $ 541.38 $ 890.54 $ 1,201.38 $ 1,525.22 $ 1,871.34 $ 157.48 4-CYBin $ 346.05 1 $ 666.31 1 $ 1,002.75 $ 1,360.87 $ 1,735.90 $ 2,127.22 NA 6-CY Bin $ 473.59 1 $ 805.37 1 $ 1,251.52 $ 1,698.46 $ 2,166.87 $ 2,781.81 NA Resolution No. 2018-069 N.C.S. Page 5 Petaluma Refuse & Recycling - Rates Effective 7/1/2108 (1) Exhibit 1 b: CITY -APPROVED MAXIMUM SERVICE RATES COMMERCIAL AND MULTI -FAMILY RESIDENTIAL SERVICES (cont'd) 10 CY Debris Box Other Services Lock Service $ 13.40 Per Lock per month Pushout Charge $ 22.12 Per 25 feet per month Lock and Push $ 22.12 Per month Lock Installation $ 197.06 Per install Container Cleaning $ 67.01 Each Can Replacement $ 13.40 jEach (in addition to one per year at no cost) Extra Pick-up Monthly rate divided by 4 Exhibit le: CITY -APPROVED MAXIMUM SERVICE RATES — DROP BOX SERVICES 10 CY Debris Box $ 230.21 per pull 10 CY Compactor $ 224.17 per pull 15 CY Debris Box N/ A per pull 15 CY Compactor $ 326.45 per pull 20 CY Debris Box $ 272.06 per pull 20 CY Compactor $ 435.25 per pull 25 CY Debris Box N/A per pull 25 CY Compactor $ 544.06 per pull 30 CY Debris Box $ 326.41 per pull 30 CY Compactor $ 652.90 per pull 40 CY Debris Box $ 326.41 per pull 40 CY Compactor $ 870.53 per pull Exhibit Id: CITY -APPROVED TIPPING FEES (Z) Disposal - Charge Per Ton $ 83.16 Redwood Landfill Recyclable Materials Processing - Charge Per Ton $ - Novato Disposal Services MRF Organic Waste Processing - Charge Per Ton $ 48.29 Sonoma Compost Mixed C&D, Inerts, Wood Waste Processing Charge Per Ton $ 82.71 Redwood Landfill (transferred for processing at Davis Street MRF) Resolution No. 2018-069 N.C.S. Page 6 Petaluma Refuse & Recycling - Rate Increase Exhibit la: CITY -APPROVED MAXIMUM SERVICE. RATES SINGLE-FAMILY RESIDENTIAL SERVICES A. RESIDENTIAL CART SERVICE Garbage Cart Sizes (gallons) 20 35 65 95 1 Monthly Curbside Rate $ 0.41 $ 0.73 $ 1.38 $ 2.28 2 Monthly Curbside Rate - Lifeline $ 0.31 $ 0.55 $ 1.04 N/A 3 Extra Pickups $ 0.10 $ 0.18 $ 0.35 $ 0.57 B. ADDITIONAL BULKY ITEM PICKUP 1 Bulky Item Pickup $ 1.49 For 2 items less than 100 pounds 2 Bag $ 0.18 each 3 Collection of Large ItemsContaining Freon $ 1.49 For each item C. ADDITIONAL CART REPLACEMENT Cart Replacement $ 0.54 Each replacement in addition to one per year at no additional cost Exhibit 1 b: CITY -APPROVED MAXIMUM SERVICE RATES COMMERCIAL AND MULTI -FAMILY RESIDENTIAL SERVICES Mixed Materials Collection (includes Recyclable Materials Collection) Collection Frequency Container Size Ix / week 2x / week 3x / week 4x / week 5x / week 6x / week Clean Up Bin/ 7 -day Rental 35 -gallon Cart $ 1.28 N/A N/A N/A N/A N/A N/A 68 -gallon Cart $ 2.22 N/A N/A N/A N/A N/A N/A 95 -gallon Cart $ 3.17 N/A N/A N/A N/A N/A N/A 1.5-CY Bin $ - $ 17.84 $ 25.43 $ 30.88 $ 42.78 $ 52.10 $ 5.41 2-CY Bin $ 12.71 $ 21.57 $ 30.08 $ 43.79 $ 55.84 $ 59.92 $ 6.35 3-CY Bin $ 17.00 $ 29.23 $ 48.08 $ 64.86 $ 82.34 $ 101.03 $ 8.50 4-CY Bin $ 18.68 $ 35.97 $ 54.14 $ 73.47 $ 93.72 $ 114.84 $ 9.34 6-CY Bin (No wheels) $ 25.57 $ 43.48 $ 67.57 $ 91.70 $ 116.99 $ 150.19 $ 12.78 Foodwaste/Organics Collection Collection Fre uenc Container Size Ix / week 2x / week 3x / week 4x / week 5x / week 6x ! week Clean Up Bin/ 7 -day Rental 35 -gallon Cart $ 0.96 N/A N/A NIA N/A NIA N/A 68 -gallon Cart $ 1.67 N/A N/A N/A N/A N/A N/A 95 -gallon Cart $ 2.38 N/A N/A N/A N/A N/A N/A 1.5-CY Bin $ 8.11 $ 13.38 $ 19.07 $ 23.16 $ 32.09 $ 39.08 N/A 2-CY Bin $ 9.53 $ 16.18 $ 22.56 $ 32.85 $ 41.88 $ 44.83 N/A 3-CY Bin $ 12.75 $ 21.92 $ 36.06 $ 48.65 $ 61.76 $ 75.77 $ 6.38 4-CY Bin $ 14.01 1 $ 26.98 1 $ 40.60 $ 55.10 $ 70.29 $ 86.13 NIA 6-CY Bin $ 19.18 $ 32.61 $ 50.68 $ 68.77 $ 87.74 $ 112.64 N/A Resolution No. 2018-069 N.C.S. Page 7 Petaluma Refuse & Recycling - Rate Increase Exhibit I b: CITY -APPROVED MAXIMUM SERVICE RATES COMMERCIAL AND MULTI -FAMILY RESIDENTIAL SERVICES (cont'd) 10 CY Debris Box Other Services Lock Service $ 0.54 Per Lock per month Pushout Charge $ 0.90 Per 25 feet per month Lock and Push $ 0.90 Per month Lock Installation $ 7.98 Per install Container Cleaning $ 2.71 Each Cart Replacementl $ 0.54 1 Each (in addition to one per year at no cost) Extra Pick-up Monthly rate divided by 4 Exhibit lc: CITY -APPROVED MAXIMUM SERVICE RATES — DROP BOX SERVICES 10 CY Debris Box $ 9.32 per pull 10 CY Compactor $ 9.08 per pull 15 CY Debris Box N/ A per pull 15 CY Compactor $ 13.22 per pull 20 CY Debris Box $ 11.02 per pull 20 CY Compactor $ 17.62 per pull 25 CY Debris Box N/A per pull 25 CY Compactor $ 22.03 per pull 30 CY Debris Box $ 13.22 per pull 30 CY Compactor $ 26.44 per pull 40 CY Debris Box $ 13.22 per pull 40 CY Compactor $ 35.25 per pull Exhibit Id: CITY -APPROVED TIPPING FEES Disposal - Charge Per Ton NA Redwood Landfill Recyclable Materials Processing - Charge Per Ton NA Novato Disposal Services MRF Organic Waste Processing - Charge Per Ton NA Sonoma Compost Mixed C&D, Inerts, Wood Waste Processing Charge Per Ton NA Redwood Landfill (transferred for processing at Davis Street MRF) Resolution No. 2018-069 N.C.S. Page 8 Petaluma Refuse & Recycling - Rates Effective 7/1/2017 Exhibit la: CITY -APPROVED MAXIMUM SERVICE. RATES SINGLE-FAMILY RESIDENTIAL SERVICES A. RESIDENTIAL CART SERVICE Garbage Cart Sizes (gallons) 20 35 65 95 1 Monthly Curbside Rate $ 9.75 $ 17.26 $ 32.73 $ 5399 2 Monthly Curbside Rate - Lifeline $ 7.29 $ 1295 $ 24.53 N/A 3 Extra Pickups $ 2.43 $ 4.31 $ 8.18 $ 13.50 B. ADDITIONAL BULKY ITEM PICKUP 1 Bulky Item Pickup $ 35.39 For 2 items less than 100 pounds 2 Bag $ 4.31 each 3 Collection of Large ItemsContaining Freon $ 35.39 For each item C. ADDITIONAL CART REPLACEMENT Cart Replacement $ 12.86 Each replacement in addition to one per year at no additional cost Exhibit 1 b: CITY -APPROVED MAXIMUM SERVICE RATES COMMERCIAL AND MULTI -FAMILY RESIDENTIAL SERVICES Mixed Materials Collection (includes Recyclable Materials Collection) Collection Frequency Container Size Ix / week 2x / week 3x / week 4x / week 5x / week 6x / week Clean Up Bin/ 7-dav Rental 35 -gallon Cart $ 30.28 N/A N/A N/A N/A N/A N/A 68 -gallon Cart $ 52.64 N/A NIA N/A N/A N/A N/A 95 -gallon Cart $ 75.05 N/A N/A N/A N/A N/A N/A 1.5-CY Bin $ 422.77 $ 602.64 $ 731.68 $ 1,013.86 $ 1,234.68 $ 128.17 2-CY Bin $ 301.16 $ 511.07 $ 712.79 $ 1,037.75 $ 1,323.28 $ 1,41990 $ 150.57 3-CYBin $ 402.95 $ 692.62 $ 1,139.30 $ 1,53698 $ 1,951.28 $ 2,394.11 $ 201.47 4-CY Bin 1 $ 442.71 $ 852.44 $ 1,282.84 $ 1,741.03 $ 2,220.81 $ 2,721.44 $ 221.36 6-CY Bin (No wheels) 1 $ 605.88 $ 1,030.36 $ 1,601.12 $ 2,17292 $ 2,772.19 $ 3,558.89 $ 302.93 Foodwaste/Organics Collection Collection Fre uenc Container Size Ix / week 2x / week 3x / week 4x / week 5x / week 6x / week Clean Up Bin/ 7 -day Rental 35 -gallon Cart $ 22.71 N/A N/A N/A N/A N/A N/A 68 -gallon Cart $ 39.49 N/A N/A N/A N/A N/A N/A 95 -gallon Cart $ 56.29 N/A N/A N/A N/A N/A N/A 1.5-CY Bin $ 192.26 $ 317.07 $ 451.97 $ 548.76 1 $ 760.38 $ 926.02 N/A 2-CY Bin $ 225.87 $ 383.30 $ 534.61 $ 778.32 $ 992.47 $ 1,062.27 N/A 3-CYBin $ 302.20 $ 519.46 $ 854.48 $ 1,152.73 $ 1,463.46 $ 1,795.57 $ 151.10 4-CY Bin $ 332.04 $ 639.33 $ 962.15 $ 1,305.77 $ 1,665.61 $ 2,041.09 N/A 6-CY Bin $ 454.41 $ 772.76 $ 1,200.84 $ 1,629.69 $ 2,079.13 $ 2,669.17 N/A Resolution No. 2018-069 N.C.S. Page 9 Petaluma Refuse & Recycling - Rates Effective 7/1/2017 Exhibit 1 b: CITY -APPROVED MAXIMUM SERVICE RATES COMMERCIAL AND MULTI -FAMILY RESIDENTIAL SERVICES (cont'd) 10 CY Debris Box Other Services Lock Service $ 12.86 Per Lock per month Pushout Charge $ 21.22 Per 25 feet per month Lock and Push $ 21.22 Per month Lock Installation $ 189.08 Per install Container Cleaning $ 64.30 Each Cart Replacement $ 12.86 Each (in addition to one per year at no cost) Extra Pick-up Monthly rate divided by 4 Exhibit le: CITY -APPROVED MAXIMUM SERVICE RATES — DROP BOX SERVICES 10 CY Debris Box $ 220.89 per pull 10 CY Compactor $ 215.09 per pull 15 CY Debris Box N/ A per pull 15 CY Compactor $ 313.23 per pull 20 CY Debris Box $ 261.04 per pull 20 CY Compactor $ 417.63 per pull 25 CY Debris Box N/ A per pull 25 CY Compactor $ 522.03 per pull 30 CY Debris Box $ 313.19 per pull 30 CY Compactor $ 626.46 per pull 40 CY Debris Box $ 313.19 per pull 40 CY Compactor $ 835.28 per pull Exhibit Id: CITY -APPROVED TIPPING FEES Disposal - Charge Per Ton $ 81.03 Redwood Landfill Recyclable Materials Processing - Charge Per Ton $ - Novato Disposal Services MRF Organic Waste Processing - Charge Per Ton $ 46.88 Sonoma Compost Mixed C&D, Inerts, Wood Waste Processing Charge Per Ton $ 80.59 Redwood Landfill (transferred for processing at Davis Street MRF) Resolution No. 2018-069 N.C.S. 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Page 11 Attachment 4 Recology Sonoma Marin Petaluma Refuse Rate index Calculation For Rate Year 2019 (July 1, 2018 to June 30, 2019) Cost Category 2017 Operating Expenses Expense 95 Weight ]Index 410 Change for 2017 welpted Percentage Labor 4 2.826.719 34.13% 0.05% 0.02% Fuel 379.718 4.58% 15.7890 0.72% GehicieReplacement 35.443 0.43% 0.96% 0.00% 4ehicleMainrenance 223,637 2.70910 2.06% 0.06% DisposalFee 2.975,304 1 35.92% 2251/o 0.81vo organic Materials Processing fee 561.451 1 6.70. 2.43% 0.16% All Other O) 1279.682 1 15.450/6 32290 0.50% Total Weighted Percentage ]Increase Before Trash Ca tare Fee 8,281,938 1 100.00b 2.27% Plus: Trash Capture Fee 1.95% Total Weighted Percentage ]Increase C-1 4.22% Resolution No. 2018-069 N.C.S. Page 12