HomeMy WebLinkAboutCC RESO 2021-50RESOLUTION NO. 2021 - 50
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA
ADOPTING A RESOLUTION FOLLOWING A PUBLIC HEARING PURSUANT TO
PROPOSITION 218 TO CONSIDER A RATE ADJUSTMENT FOR REFUSE SERVICES
INCLUDING RECYCLING AND YARD WASTE DISPOSAL PROVIDED TO NATIONAL
CITY RESIDENCES AND BUSINESSES BY EDCO DISPOSAL CORPORATION AND
AMENDING THE AGREEMENT BETWEEN THE CITY AND EDCO DISPOSAL
CORPORATION TO INCREASE THE MONTHLY RATES FOR REFUSE COLLECTION
SERVICES
WHEREAS, the Proposition 218 process requires that written notification be given
to all affected property owners, and that those property owners are given a 45-day period
in which to submit written protests if they oppose the proposed rate adjustments; and
WHEREAS, pursuant to Proposition 218, on April 2, 2021, a Public Notice was
mailed to all property owners giving notice of the date, time and place wherein a Public
Hearing would be held on the proposed rate adjustment; and
WHEREAS, on May 18, 2021, the City Council held a Public Hearing on the
proposed increases in rates; and
WHEREAS, during the Public Hearing, the City Council heard and considered all
oral objections and protests against the proposed increases in rates; and
WHEREAS, prior to the conclusion of the Public Hearing, the City Clerk received
all written protests to the proposed increases in rates; and
WHEREAS, the City Clerk counted the written protests; and
WHEREAS, written protests against the proposed increases in rates were not
presented by a majority of the owners or the tenants; and
WHEREAS, having no majority protest, on May 18, 2021,the City Council
considered the rate adjustment as it relates to amending the Agreement; and .
WHEREAS, on September 25, 1990, the City of National City and EDCO Disposal
Corporation ("EDCO") entered into an Agreement for Collection of Rubbish and Trash
between the City of National City and EDCO Disposal Corporation ("Agreement")
providing for refuse collection services; and
Resolution No. 2021 - 50
Page Two
WHEREAS, the Agreement was amended on June 22, 1993, pursuant to
Resolution No. 93-86; on November 9, 1993, pursuant to Resolution No. 93-176; on June
21, 1994, pursuant to Resolution No. 94-88; on September 16, 1997, pursuant to
Resolution No. 97-119; on June 12, 2001, pursuant to Resolution No. 2001-88; and on
May 20, 2003, pursuant to Resolution No. 2003-64; June 21, 2005, pursuant to Resolution
No. 2005-134 June 5, 2007, pursuant to Resolution No. 2007-116; June 4, 2013 pursuant
to Resolution No. 2013-79; and on June 2, 2015 pursuant to Resolution No. 2015-82,
June 6, 2017 pursuant to Resolution No. 2017-87 and May 21, 2019 pursuant to
Resolution No. 2019 - 76; and
WHEREAS, pursuant to Section 23 of the Agreement, titled "Applications for Rate
Change", EDCO may apply annually for changes in the rates charged; and
WHEREAS, EDCO has applied for an increase of $0.91 per month to the
residential rate, and $5.43 per month to the standard commercial rate; and
WHEREAS, the proposed increases are based on an increase in the tipping fees
at the landfill, the decrease in revenue from recyclables sold, and the San Diego
Consumer Price Index; and
WHEREAS, pursuant to Section 4 of the Agreement titled "Rates for Contractor's
Services", EDCO shall charge no more than the maximum rate set forth in the Rate
Schedule, which is set out in Exhibit "A"; and
WHEREAS, the proposed Amendment to this Agreement is reflected in Exhibit "A";
and
WHEREAS, the proposed increases in rates reflected in the Rate Schedules will
be effective July 1, 2021.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
Section 1: Finds, orders and declares that there was no majority protest of the
proposed rate adjustment.
Section 2: Authorizes EDCO Disposal Corporation to increase the rates
charged for refuse collection services as set out in Exhibit "A" attached hereto and by this
reference is incorporated herein and though set forth in full with the Rate Schedules titled
"Residential Rates Adjustments" and "Commercial Rates Adjustments".
Resolution No. 2021 - 50
Page Three
Section 3: Authorizes the Mayor to execute the Amendment to the Agreement
between the City of National City and EDCO Disposal Corporation.
Section 4: The City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolution.
PASSED and ADOPTED this 18th day of May, 2021
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Moli �, City Clerk
APPROVED AS TO FORM:
Charles E. Bell Jr., City orney
Passed and adopted by the City Council of the City of National City, California, on May
18, 2021, by the following vote, to -wit:
Ayes: Sotelo-Solis, Rodriguez, Bush, Morrison, Rios.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS
Mayor of the City of National City, California
LUZ MOLINA
City Clerk of the City of National City, California
(ftQJ 0
BY: 1
Shelley Chapel, MMC, Deputy City Clerk
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2021-50 of the City of National City, California, passed and adopted
by the City Council of said City on May 18, 2021.
Lkcc it) -(:)
Luz Molina, City Cler
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EXHIBIT A
Residential Rates Adjustment
National City
Rate Adjustment • July 1, 2021
Gross Rate Revenue & Franchise Fees'
Annual Amount
Gross Residential Rate Revenue - 2020
$
1,900,500
Less Residential Franchise Fees @ 9.6% -
($180,548)
Less Enterprise Fund (res portion)
($57,907)
Residential Rate Revenue Net of Franchise and Enterprise Fund •
A$
1,662,045
Revenue Components (net of Franchise Fees
Revenue Components (net of Franchise Fees)
Annual Amount
-Percentage of Rate Revenue Net of
Franchise Fees
Residential Rate Revenue Net of Franchise Fees
. $1,662,045
100.00%
Less: Actual Residential refuse Disposal Expense
-$616,638
-37.10%
Less: Actual Organic Waste Disposal (res portion)
439,581
-2.38%
Add: Recycling Revenue (residential portion)
$40,437
2.13%
Residential Service Revenue
$1,048,385
62.65%
Percentage change In adjustment factors
Adjustment Factor
Old
New
Index Change
Rate Component
Percent Change
RSWA Disposal Tipping Fee per Ton
$ 44.39
$ 46.22
$ 1.83
4.12%
Organics
$ 164,444
$ 169,044
$ 4,600
2.98%
Recycling Revenue Increase / (Decrease)
$37,850
$44,437
$ 6,687
17.40%
CPI- San Diego Index CUURS49ESA0
295.0
305.8
10.81
3.86%
Weighted percentage change In adjustment factors
Revenue Components
Component Weight
Rate Component Percent Change
Weighted Rate
Adjustment
Refuse Disposal
37.10%
4.12%
1.53%
Organics
2.38%
2.98%
0.07%
Recycling Revenue (Increase)IDecrease
-2.13%
17.40%
-0,37%
Service
62.65%
3.66%
2.29%
Totals
100.00%
3.52%
Apply weighted percentage change to Residential Rates
Service
• Current Monthly Rate
Weighted Rate
Adjustment
Rate Change
Adjusted Monthly
Rate
Residential Single Family Rate
$22.52
3.52%
0.79
23.31
Senior Rate
$18.02
3.62%
0.63
18.65
Silver Bag
$2.75
3.52%
0.10
2.85
Multi family recycling per Unit
$1.14
3.52%
0.04
1.18
** Appiv franchise fee Increase to Residential Rates
Service
Adjusted Monthly Rate
FF Increase.6%
Rate Change
Adjusted Monthly
Rate
Residential Single Family Rate
$23.31
0.5%
0.12
23.43
SenlorRate
$18.65
0.5%
0.10
18,75
Silver Bag
$2.85
0,5%
0.02
2.87
Multi family recycling per Unit
$1.18
0.5%
0.01
1.19
Updated Allocation
of current rate
Change
New
Rate Allocation
Service
$12.39
$0.45
$12.84
Landfill
$5,09
$0.21
$5.30
Enterprise Fund
$0.61
$0.02
$0.63
Recycling
($0.42)
($0.08)
($0.60)
Organics
$2.71
$0.10
$2.81
Franchise Fee (10%)
$2.14
$0.20
$2.34
Total Rate
$22.62
$0,91
$23.43
Commercial Rates Adjustment
National City
Rate Adjustment - July 1, 2021
Gross Rate Revenue & Franchise Fees
Annual Amount
Gross Commercial Rate Revenue - 2020
•
Less Gross Franchise Fees at 9,5%.
Less Enterprise Fund (comm portion)
Commercial Rate Revenue Net of Franchise Fee and Enterprise Fund
$
$
4,118,337
($391,242)
($117,797)
3,609,297
Revenue Components (net of Franchise Fees)
Annual Amount
Percentage of Rate Revenue Net of
Franchise Fees
Commercial Rate Revenue Net of Franchise Fees
$3,609,297
100,00%
Less: Actual Commercial Refuse Disposal Expense
-$1,170,720
-32.44%
Less: Actual Organic Waste Disposal(comm portion)
-$80,361
-2.23%
Add: Recycling Revenue (comm portion)
$82,100
2.27%
Commercial Service Revenue
$2,440,316
67.61%
Percen age chancre In adjustment factors
Adjustment Factor
Old
New
Index Change
Rate Component
Percent Change
RSWA Disposal Tipping Fee per Ton
$ 44.39
$ 46.22
$ 1.83
4.12%
Organics
$ 313,567
$ 322,907
$ 9,339,17
2,98%
Recycling Revenue Increase / (Decrease)
$ 76,847
$ 82,100
$ 5,253
6.84%
CPI- San Diego Index CUURS49ESA0
295.0
305.8
3.66%
3,66%
Weighted percentage change In adjustment factors
Components of Actual Revenue
Component Weight
Rate Component Percent Change
Weighted Rate
Adjustment
Refuse Disposal
32.44%
4.12%
1.34%
Organics
2.23%
2.98%
0,07%
Recycling (Increase)/Decrease
-2,27%
6.84%
-0.16%
Service
67.61 %
3.66%
2,47%
Totals
100.00%
3.72%
Service
3 Cu Yard x 1 week
Apply weighted percentage change to Commercial Rates
Current Monthly Rate
$126,21
Weighted Rate
Adjustment
3.72%
Rate Change
$4,70
Adjusted Monthly
Rate
$130.91
"Apply franchise fee increase to Commercial Rates
Service
Adjusted Monthly Rate
FF Increase .5%
Rate Change
Adjusted Monthly
Rata
3 Cu Yard x 1 week
$130.91
• -0,5%
$0,73
$131.64
Updated Allocation
of current rate
Change
Proposed
New Allocation
Service
$74.79
$2.74
$77.53
Landfill
$35.88
$1.48
$37.36
Enterprise Fund
$3,61
$0.13
$3.74
Recycling
($2,52)
($0.17)
($2.69)
Organics
$2.46
$0.07
$2.53
Franchise Fee (10%)
$11.99
$1.18
$13.17
Total Rate
$126.21
$5.43
$131.64