HomeMy WebLinkAboutCC RESO 2023-73RESOLUTION I NO. 2023— 73
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 RATE ADJUSTMENTS FOR
REFUSE SERVICES INCLUDING RECYCLING AND ORGANICS/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, S, 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
WHEREAS, the Proposition 218 process requires that written notification of proposed rate
adjustments be given to all affected property owners, and that those property owners are given a 6-
day period in which to submit written protests if they oppose the proposed rate adjustments; and
WHEREAS, pursuant to Proposition 218, on April 21 i 2023, 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 June 6, 2023, 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, S, 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 June 6, 2023, the City Council considered the rate
adjustment as it relates to amending the Agreement; and
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. 20 1- ; and on May 20, 2003, pursuant to Resolution No. 2 6 -6 ; June
21, 2005, pursuant to Resolution No. 2005-134 June 53 2007, pursuant to Resolution No. 2007-116;
June 4, 2013 pursuant to Resolution No. 2 13- 9; 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; May 18, 2021 pursuant to Resolution No.2021- 50; 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 $1.56 per month to the residential rate,
and $8.11 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 increase in organic waste tonnage, the increase in revenue from recyclables sold, and
the San Diego Consumer Price Index; and
WHEREAS, California Government Code section 53756 permits that the rates be adjusted
administratively over the next five years based on changes in the tipping fees at the landfill
(increase capped at 5% per year), volume and cost of organic waste (increase capped at 6% per
year), revenue from recyclables sold (not capped but historically impacts rate -3% to }1 % per
year), and the San Diego Consumer Price Index (increase capped at 6% per year); and
WHEREAS, Franchise Fees are proposed to increase from 10% to 12.5% over a four-year
period as follows. On July 1, 2023 Franchise Fees will not increase, on July 1, 2024, Franchise
Fees will increase 1 %, on July I , 2025, Franchise Fees will increase 0.5%, on July 1, 2026,
Franchise Fees will increase 0.5% and on July 1, 2027, Franchise Fees will increase 0.5%; 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" of the Agreement; 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, 2023.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1:
Section 2:
Section 3:
Finds, orders and declares that there was no majority protest of the
proposed rate adjustment.
Authorizes EDCO Disposal Corporation to increase the rates
charged for refuse collection services, effective July 1, 2023, 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".
Authorizes EDCO Disposal Corporation to increase the rates
charged for refuse collection services using automatic formulary
adjustments based on the fixed factors of landfill fees, organics
waste volume, recycling amounts, and changes in the CPI, as
detailed above, to determine the rates in years 2 through 5 for the
five-year period of July 1, 2023 to June 30, 2028.
Section 4:
Section 5:
ATTEST:
Shelley Chapel,
Authorizes the Mayor to execute the Amendment to the Agreement
between the City of National l City anc EDGO Disposal Corporation.
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 6th day of J 2023.
ornson, v ayor
MC, City
APPROVED AS TO FORM:
Barry J.
City Attor ey
Passed and adopted by the City Council of the City of National City, California, on
June 6, 2023 by the following vote, to -wit:
Ayes: Bush, Rodriguez, Yamane, Molina, Morrison
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON ORR1SO
Mayor of the City of National City, California
BY:
Shelley Chasel
City Clerk of the City of National City, California
(1/4? 01/10
Shiley Chapel, l
EXHIBIT "A"
Residentiat Rates Adjustment
National Cily
Rate Adjustment - July 13 2023
Gross Rate Revenue & Franchise hi Fees
Gross Residential Rate Revenue
Less ResIdential Franchise Fees 1 o
Less Enterprise Fund (res portion)
Residential Rate Revenue Net of Franchise and Ente 'rise Fund
•
Annual Amount
,4
022
($2184602)
1 DO8 61..
Revenue : a nt (net of Franchise Fees)
Revenue mi n nt (net of Franchise Fees)
Residential Rate Revenue Net of Franchise Fees
Less: Actual Residential refuse Disposal Expense
Less: Actual Organic Waste Disposal (res portion)
Add: Recycling Revenue(residential portion)
Residential Service Revenue
Annul Amount
1w90, 1
-$5812468
41074449
$681
722
1 #4
447
E�Ey�[iPL��c'J i :1t 1fi1€* III ' [II l*"IIH III � :lC.t1J
Percentage of Rate Revenue Net of
Franchise Fees
100.00%
-30. 7%
3.14%
67,06%
Adjustment Factor
Old
New
Change
Rate Component r
Percent Chan q e .
!SW!RSWA Disposal Tipping Fee per Ton
$ 4.6.22.'
48,53
2,31
!Organics
$ 1591.044
141,918
$ 071126)-10.
7%
1Recycling. v Increase / (Decrease)
x 7
7 1125
$
7. %
;CPI- San Diego 2nd Half index 4 S
�3 ' '.
348,9
x1
14.1 %
ic.P} A� q
1 -
Revenue Components
Refuse Disposal
Organics
Recycling Revenue (Increase}iDecrease
Service
Totals
Service
Residential Single Family Rile
Senior Rate
Silver Bag
Multi family ii recycling per Unit
Wei I hted
l
ercenta a chan e in acijt.Jstme K1 d st
Component
ht
0. 7%
- ,14
67.
05%
100.00%
Rate Component Percent Change TWatiTiORate
Ad nit
hted iercenta e chaage to id n i l Rates
Current Monthly Rate
$23,43
,$18.75
$2.
87
$1.19
Weighted Rate
Ad"ustment
Rate Change
1.56
1.26
0.10
08
Adjusted Monthly
Rate
24.99
20,00
3,06
1.27
Updated Allocation
of current rate
.ew
Rats Allocation
Service
$13.72
$1,
$15.36
Landfill
$6.23
$0.31$6.54
Enterprise FWn
0. 6
$.04
$0.67
Recycling
.
0.
$1.1
Organics
x12.)
$1.03
Fee$1.15
Franchise (10%)$2.34
$0.16
Total Rate
$23,43
$1.56$24.99
Commercial Rates Adjustment
National CIty
Rate Adjustment - July 10 2023
Gross Rate Revenue & FranchiseFees
Gross Commercial Rate Revenue -2022
Less Grp Franchise Fees 1%
Less Enterprise Fund (comm portion
Commercial Rate Revenue Net of Franchise Fee and Ent ? rise Fund
Revenuem nt (net of Franchise Fees)
Commercial Rate Revenue Net of Franchise Fees
Less: Actual Commercial Refuse Disposal Expense
Less: Actual Organic Waste i l c rn portion)
.Y Recycling Revenue co1m portion)
Commercial Service Revenue
Adjustment Factor
RSWA Disposal Epping ee per Ton
°wanks
Recycling Revenue Increase (Decrease)
CPI- San Diego 2nd Half index CULIRS49ESA0
Wei hted
•
Components tual Revenue
Refuse Disposal
des
Recycling (IncreaseMecrease
Bence
Totals
Annual Amount
$4 t782
4125029
-$2183153
$139,
527
jr-^i4►w w-wlW.xh W`i—i4i=iWvi•lWiYW__war" IPierikl.A4
chatJL.agliRAcjitistment factors
ernt
Oki
an
T
}
907.
305,8
New
48,53
2881138
1563581
34
e in ad ustment factors
Component Weight
29.67%
.1 %
41
looxo%
EXHIBIT "A"
Annual Amount
05713
$4V ., )
($1 )
}233;
782
Percentage of Rate Revenue Net
Franchise Fees
Index Change
}
( $ )
74..,
487
Rate Component Percent Change
5
-10.77%
90,73%
12.00%
47
Rate Component
Percent Change
5400
-10.77%
'9 ,73
14.10%
1 , 0
Weighted :ate
48
- . %.
,%
6w1 3
Apply i t dd percentage change to Commercial Rakes
_ _ _ _s __ __ _ _ _s _ _ x 4 __ _s , _ _sl 1
Service
:__
1
' „
___y _ss
s __ _
_ s _ __
_ _ _ram._
__ _ �. _ _ _ _ Y s s y x • •.- - .- •
Current Monthly Rate
v
••
_s
_ _
Wei6.t
hted
c ti
1
Rate
hange
AdjitMonthly
Rate
Cu Yard x 1 Week
..
.
$131,64
6.1eg
$ .11
$139.75
Service
Landfill
Enterprise Fund
cycling
Organics
Franchise Fee (10%)
Total Rate
Update: Allocation
of current rate
$78,57
$34.04
$3.74
$5.91
$13.16
1 1464
Change
Y
70
43) FT+rtf
($0.64)
$0.82
x 1
Proposed
New Allocatfon
$354
74
$3.97
($7.21)
'.`
$139.75