HomeMy WebLinkAboutEDCO Disposal Corporation - Rate Adjustment - Increase - 2013RESOLUTION NO. 2013 — 79
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO
THE AGREEMENT BETWEEN THE CITY AND EDCO DISPOSAL CORPORATION TO
INCREASE THE MONTHLY RATES FOR REFUSE COLLECTION SERVICES
WHEREAS, on September 25, 1990, the City of National City and EDCO
Disposal Corporation ("EDCO") entered into The 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 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; on May 20, 2003, pursuant to
Resolution No. 2003 - 64; June 21, 2005, pursuant to Resolution No. 2005-134; and on June 5,
2007, pursuant to Resolution No. 2007-116; 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 $.83 per month to the
residential rate, and $5.48 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" to the Agreement, and
WHEREAS, the proposed Amendment to the Agreement will replace Exhibit "A"
with the Rate Schedules titled "RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate
Adjustment — July 2013" and "COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate
Adjustment — July 2013"; and
WHEREAS, the proposed increases in rates reflected in the Rate Schedules will
be effective July 1, 2013,and
WHEREAS, on June 4, 2013, 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
Resolution No. 2013 — 79
Page Two
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.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City does hereby authorize the Mayor to execute the Amendment to the Agreement
between the City of National City and EDCO Disposal Corporation to increase the rates charged
for refuse collection services by replacing Exhibit "A" with the Rate Schedules titled
"RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 2013" and
"COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 2013".
PASSED and ADOPTED this 4th day of June, 2
on Morrison, Mayor
ATTEST:
Mich el R. Dalla it
Clerk
y
OVED AS TO FORM:
CI': a . Silva
City Attorn
Passed and adopted by the Council of the City of National City, California, on June 4,
2013 by the following vote, to -wit:
Ayes: Councilmembers Cano, Morrison, Natividad, Rios.
Nays: None.
Absent: None.
Abstain: Councilmember Sotelo-Solis.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
CI of the City of ation
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2013-79 of the City of National City, California, passed and adopted
by the Council of said City on June 4, 2013.
City Clerk of the City of National City, California
By:
Deputy
City al City, California
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
cac- C
t �t
MEETING DATE: June 04, 2013
ITEM TITLE:
AGENDA ITEM NO.13
A Resolution of the City Council of the City of National City authorizing the Mayor to execute an
Amendment to the Agreement between the City and EDCO Disposal Corporation to increase the
monthly rates for refuse collection services.
PREPARED BY: Joe Smith DEPARTMENT: Public Works
PHONE: 336-4587
EXPLANATION:
See Attached
•
APPROVED BY:
FINANCIAL STATEMENT:
ACCOUNT NO.
APPROVED:
APPROVED:
Finance
MIS
The proposed rate increase will be funded through trash service fees with no financial impact to the City
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Approve the proposed Amendment to the Agreement for Collection of Rubbish and Trash in the City of National
City by and between the City of National City and EDCO Disposal Corporation for Services Rendered to increase
the rates charged.
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
Sxplanation
IIIVDCO letter of March 04, 2013
National City Rate Schedule
Refuse and Trash Agreement
County Wide Rate Comparison
Proposition 218 and Proposition 26 Analysis
gti �vt�0 G.o��-'l�
Staff Recommendation:
Approve an Amendment to the Agreement for Collection of Rubbish and Trash
between the City of National City and EDCO Disposal Corporation to increase
the rates charged.
Background
On September 25, 1990, the City entered into the Agreement for Collection of
Rubbish and Trash in the City of National City by and between the City of
National City and EDCO Disposal Corporation for Services Rendered
(Agreement).The Agreement has been amended several times. In 1993 and
1997, the Agreement was amended to extend the term of the Agreement. In
2003, 2005, and 2007, the Agreement was amended to increase the rates
charged by EDCO. The Agreement has not been amended since 2007.
Pursuant to Section 23 of the Agreement, titled "Applications for Rate Change",
EDCO may apply annually for changes in the rates charged. Changes in the
rates charged by the owners/operators of sanitary landfill sites utilized by EDCO
(tipping fees) are considered as "pass -through" costs. Once EDCO is notified of a
proposed tipping fee change, EDCO can submit a letter request for rate change
to the City. The annual "cost of living" changes will be based upon the CPI for
San Diego and will be equal to the percentage change in the index with a cap of
6%. EDCO has submitted a request for a rate increase in compliance with
Section 23 of the Agreement.
Explanation
The rates for trash service are based on various components; landfill and
yardwaste rates and tonnage, recyclables sold, and the San Diego consumer
price index (CPI). For the Rate Review, the actual total cost/price of budget
items is determined, and is compared to budgeted amounts.
FY-14 Rate Factors:
Total proposed adjustment is $0.83 (5.01%) per month to the standard residential
rate and $5.48 (5.23%) per month to the standard commercial rate. There are
four main components to the rate.
Landfill
As the City is a member of the Regional Solid Waste Authority (RSWA), the
landfill portion of the rate is based on approved changes in the RSWA rate. The
RSWA rate per ton has increased from $39.11 to $41.28. This increase of $2.17
per ton equates to a weighted average adjustment of $.27 to the standard
residential rate and $1.86 to the standard commercial rate. We estimate the trash
tonnage hauled in FY-14 to be similar to last year.
•
Yardwaste
The yardwaste disposal rate increased from $25.36 to $26.65 with the tonnage
remaining similar to last year. This equates to a weighted average adjustment of
$0.01 to the standard residential rate and $0.06 to the standard commercial rate.
Recycling
Recyclable revenue decreased from last year by $74,514, a figure that was also
impacted by scavenging. This equates to an adjustment of $.18 to the standard
residential rate and $1.23 to the standard commercial rate.
Consumer Price Index (CPI)
The most recently published one-year San Diego CPI index is 2.71%. This
equates to a weighted average adjustment of $.28 to the standard residential rate
and $1.69 to the standard commercial rate.
We will again have EDCO contribute $150,000 to the City's Enterprise Fund. The
Enterprise Fund is funded by money collected by EDCO for the City from the rate
payers, pursuant to Section 16 of the Agreement titled "Franchise Fee". Section
16 provides for an increase in the Franchise Fee every year. An increase in the
Franchise Fee of $.09 to the standard residential rate and $.64 to the standard
commercial rate is included in the overall rate adjustment. The funds in the
Enterprise Fund are used to pay for AB939 programs such as Household
Hazardous Waste collection and the City's annual report required by CalRecycle.
The fund also pays for hazardous waste disposal collected from the public right-
of-way and a street sweeper operator.
It should be noted that the single-family rate has not been increased since 2007
and, even with the proposed rate increase; National City will remain the lowest
trash rate in the County.
The history of the single-family rate in National City is as follows:
FY-02, 03
FY-04, 05
FY-06, 07
FY-08, 09, 10, 11, 12, 13
Proposed FY-14
$14.83
$15.33
$15.99
$16.64
$17.47
Current MonthlyPrService Rate
Rate Change
Monthly Rate
Single Family Rate
$16.64
$0.83
$17.47
Senior Rate
$13.32
$0.67
$13.99
Silver Bag (ea)
$ 2.28
$0.11
$ 2.39
•
In addition to general collection, hauling and disposal of the City's rubbish and
trash, EDCO provides the following services at no cost to the City or the
customer, pursuant to the Agreement:
• Removal of garbage, rubbish and sweeping debris on City -owned properties.
Section 11 of the Agreement, titled "Service to City", says "[EDCO] shall
collect garbage and rubbish from City -owned properties, as frequently as is
necessary to prevent the accumulation of rubbish or garbage on City -owned
property, without charge to the City. Collection service includes removal of
sweeping debris."
• Biannual Cleanups. Section 12 of the Agreement, titled "Biannual Cleanup",
and says [EDCO] agrees to provide two annual cleanup campaigns and to
cooperate with City as to the date and manner of conducting said cleanup
campaigns.
• Collection of Bulky Items. Section 14 of the Agreement, titled "Collection of
Bulky Items", says, "[EDCO] is required to establish a program for pickup,
recycling as required and disposal of major household appliances (stove,
refrigerator, washer, dryer, etc.), and major household furniture (couch, chair,
table, mattress, etc.). Said program shall include a procedure for informing
[EDCO's] customers of the existence of said program, and of the details of
said program (e.g., pickup times)." Section 14 goes on to say "Costs for this
program are considered a basic business cost to be included in overall rate
establishment and without additional charge to the customer."
A copy of the Notice of Public Hearing to Consider Proposed Rate Increase for
Refuse Services, sent to all customers and property owners, is attached.
A copy of the proposed Amendment to the Agreement is also attached.
WASTE & RECYCLING SERVICES
March 4, 2013
Joe H.A. Smith
Director of Public Works
City of National City
2100 Hoover Avenue
National City, CA 91950
Dear Joe,
EDCO has been pleased to serve as the waste collection and recycling service provider to
the City of National City for many years. We look forward to continuing to provide the
citizens and businesses with the highest -level of service in a safe and professional
manner.
The agreement between the City of National City and EDCO allows for periodic rate
adjustments based on the local consumer price index and a pass through of changes in
disposal fees. As you are aware our last adjustment was in July of 2007 and since that
time several costs of providing our services have increased dramatically. The calculation
of our proposed adjustments is determined through a detailed formula utilizing the
following factors:
• The Consumer Price Index (CPI) as published for the San Diego Region was
2.71% for the year 2011. We are deferring the 2012 CPI for future consideration.
• As a member of the Regional Solid Waste Authority (RSWA) National City's
refuse tipping fee has increased from the 2007 rate of $39.11 to the current 2013
rate of $41.28.
The following pages give the schedule of proposed adjustments to the rate structure.
Should you have any questions please contact me at (619) 287-5696 ext 4204.
Sincerely,
John Snyder
Vice President
"We'll Take Care of It"
6670 Fedoras Boulevard e r. n Grove, California 91945
45
(6 i9) 287 55 Fax: (51 9_) '28 -52,12 ° www.eiicodisposal.com • Printed on RC'Tried Paper
Residential Rates Adjustment
National City
Rate Adjustment - July 1, 2013
Gross Rate Revenue & Franchise Fees
Annual Amount
Gross Residential Rate Revenue - 2012
$
1,511,339
Less Residential Franchise Fees @ 9 %
($136,021)
Less Enterprise Fund (res portion)
($45,413)
Residential Rate Revenue Net of Franchise and Enterprise Fund
$
1,329,906
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
$1,329,906
100.00%
Less: Actual Residential refuse Disposal Expense
-$441,832
-33.22%
Less: Actual Yard Waste Disposal (res portion)
-$17,752
-1.33%
Add: Recycling Revenue (residential portion)
$70,050
4.63%
Residential Service Revenue
$940,372
70.08%
Percentage change in adjustment factors
Adjustment Factor
Old
New
Index Change
Rate Component
Percent Change
RSWA Disposal Tipping Fee per Ton
$
39.11
$
41.28
$
2.17
5.55,%
YW Tipping Fee per Ton
$
25.36
$
26.65
$
1.29
5.07%
Recycling Revenue Increase / (Decrease)
$94,640
$70,050
$
(24,590)
-25.98%
CPI- San Diego Index CUUSA424SA0
246.7
253.4
6.68
2.71%
Weighted percentage change in adjustment factors
Revenue Components
Component Weight
Rate Component Percent Change
Weighted Rate
Adjustment
Refuse Disposal
33.22%
5.55%
1.84%
Yard Waste Disposal
1.33%
5.07%
0.07%
Recycling Revenue (Increase)/Decrease
-4.63%
-25.98%
1.20%
Service
70.08%
2.71%
1.90%
Totals
100.00%
5.01%
AY weighted percentage change to Residential Rates
Service
Current Monthly Rate
Weighted Rate
Adjustment
Rate Change
Adjusted Monthly
Rate
Residential Single Family Rate
$16.64
5.01%
$0.83
$17.47
Senior Rate
$13.32
5.01%
$0.67
$13.99
Silver Bag
$2.28
5.01%
$0.11
$2.39
Mufti family recycling per Unit
$0.94
5.01%
$0.05
$0.99
Updated Allocation
of current rate
Change
Proposed
New Allocation
Service
$10.26
$0.28
$10.54
Landfill
$4.86
$0.27
$5.13
Enterprise Fund
$0.50
$0.03
$0.53
Curbside Recycling
($0.68)
$0.18
($0.50)
Yard Waste collection
$0.20
$0.01
$0.21
Franchise Fee (9%)
$1.50
$0.07
$1.57
Total Rate
$16.64
$0.83
$17.47
Commercial Rates Adjustment
National City
Rate Adjustment - July 1, 2013
Gross Rate Revenue & Franchise Fees
Annual Amount
Gross Commercial Rate Revenue - 2012
$
3,159,183
Less Gross Franchise Fees @ 9 %
($284,326)
Less Enterprise Fund (comm portion)
($91,081)
Commercial Rate Revenue Net of Franchise Fee and Enterprise Fund
$
2,783,775
Revenue Components (net of Franchise Fees)
Annual Amount
Percentage of Rate Revenue Net of
Franchise Fees
Commercial Rate Revenue Net of Franchise Fees
$2,783,775
100.00%
Less: Actual Commercial Refuse Disposal Expense
-$1,008,659
-36.23%
Less: Actual Yard Waste Disposal(comm portion)
-$36,043
-1.29%
Add: Recycling Revenue (comm portion)
$142,223
5.11%
Commercial Service Revenue
$1,881,297
67.58%
Percentage change in adiustm
Adjustment Factor
Old
New
Index Change
Rate Component
Percent Change
Disposal Ti
RSWA Dis p Tipping Fee per Ton
$ 39.11
$ 41.28
$ 2.17
5.55%
YW Tipping Fee per Ton
$ 25.36
$ 26.65
$ 1.29
5.09%
Recycling Revenue Increase / (Decrease)
$ 192,147
$ 142,223
$ (49,924)
-25.98%
CPI- San Diego Index CUUSA424SA0
246.7
253.4
2.71%
2.71%
Weighted percentage change in adiustmentf
Components of Actual Revenue
Component Weight
Rate Component Percent Change
Weighted Rate
Adjustment
Refuse Disposal
36.23%
5.55%
2.01%
Yard Waste Disposal
1.29%
5.09%
0.07%
Recycling Revenue (Increase)/Decrease
-5.11%
-25.98%
1.33%
Service
67.58%
2.71%
1.83%
Totals
100.00%
5.23%
Apply weighted percentage change to Commercial Rates
Service
Current Monthly Rate
Weighted Rate
Adjustment
Rate Change
Adjusted Monthly
Rate
3 Cu Yard x 1 week
$104.75
5.23%
$5.48
$110.23
Updated Allocation
of current rate
Change
Proposed
New Allocation
Service
$62.38
$1.69
$64.07
Landfill
$33.44
$1.86
$35.30
Enterprise Fund
$3.02
$0.16
$3.18
Curbside Recycling
($4.72)
$1.23
($3.49)
Yard Waste collection
$1.20
$0.06
$1.26
Franchise Fee (9%)
$9.43
$0.49
$9.92
Total Rate
$104.75
$5.48
$110.23
RESOLUTION NO. 2007 - 116
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
APPROVING A REFUSE (TRASH) SERVICE RATE INCREASE
FOR EDCO DISPOSAL CORPORATION
WHEREAS, the last refuse (trash) service rate change for EDCO Disposal
Corporation, the City's contract refuse hauler, was on June 21, 2005; and
WHEREAS, the rate that the City must pay for refuse disposal is based upon
landfill and yardwaste tonnage, recyclables sold, and the Consumer Price Index; and
WHEREAS, the rate for refuse disposal that the City must pay is estimated to
increase from $35.54 per ton to $39.11 per ton, effective July 1, 2007; and
WHEREAS, the increase in the rate for refuse disposal requires an increase in
charges to the City's rate payers, in order to adequately fund the City's program for refuse disposal;
and
WHEREAS, the City Council held a noticed public hearing on June 5, 2007, at 6:00
p.m. in the City Council Chambers, 1243 National City Boulevard, National City, for the purpose of
considering an increase in rates for refuse services. At said public hearing the City Council
considered any objections and protests to the proposed rates.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National
City that the proposed refuse (trash)service rate schedule, a copy of which is attached hereto as
Exhibit "A" and incorporated herein by reference, is hereby approved, effective July 1, 2007.
PASSED and ADOPTED this 5th day of June, 2
nMrri 0 o so
ATTEST:
it
is ael R. Della,
M ity Clerk
APPROVED AS TO FORM:
George H. iser, III
City Attorney
n, Mayor
NATIONAL CITY RATE SCHEDULE
July 1, 2007
RUBBISH AND GARBAGE
1. RESIDENTIAL
Per month residential single family properties
CURRENT PROPOSED
MONTHLY MONTHLY
RATE RATE
$15.99 $16.64
For the second and for each additional
residential unit in multiple dwellings which
do not exceed four units $12.61 $13.12
2. TRAILER PARKS AND MOTELS
One time per week, per unit, per month $11.06 $11.51
3. APARTMENT HOUSES
One time per week, per unit, per month $11.23 $11.69
4. SENIOR CITIZEN RESIDENTIAL
Per month $12.79 $13.31
5. SILVER BAG SERVICE
Per month $2.19 $2.28
6. COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS
Up to (2) 40 gallon containers
Or (1) 90 gallon automated cart
One time per week, per month $18.72 $19.82
Up to (4) 40 gallon containers
Or (2) 90 gallon automated cart
One time per week, per month
Up to (6) 40 gallon containers
Or (3) 90 gallon automated cart
One time per week, per month
$34.83 $36.87
$44.77 $47.39
EXHIBIT "A"
Page 1
NATIONAL CITY RATE SCHEDULE
July 1, 2007
RUBBISH AND GARBAGE
Up to (8) 40 gallon containers
Or (4) 90 gallon automated cart
One time per week, per month
CURRENT PROPOSED
MONTHLY MONTHLY
RATE RATE
$55.34 $58.58
Up to (10) 40 gallon containers
Or (5) 90 gallon automated cad
One time per week, per month $72.28 $76.52
Additional or unusual accumulation
of rubbish (per cubic yard)
BOX TYPE REFUSE SERVICE
COLLECTION NUMBER YARDS
FREQUENCY OF BINS PER MONTH
$18.72 $19.82
CURRENT PROPOSED
MONTHLY MONTHLY
RATE RATE
1 1 13 $98.95 $104.75
2 1 26 $167.03 $176.82
3 1 39 $235.12 $248.90
4 1 52 $305.21 $323.10
5 1 .65 $375.29 $397.29
6 1 78 $445.38 $471.49
7 1 91 $515.47 $545.68
1 2 26 $169.04 $178.95
2 2 52 $303.21 $320.98
3 2 78 $437.37 $463.01
4 2 104 $569.53 $602.91
5 2 130 $701.70 $742.83
6 2 156 $833.86 $882.74
7 2 182 $966.02 $1,022.64
1 3 39 $239.12 $253.14
2 3 78 $435.37 $460.89
3 3 117 $631.61 $668.63
4 3 156 $825.85 $874.26
5 3 195 $1,020.09 $1,079.88
6 3 234 $1,214.33 $1,285.51
7 3 273 $1,408.57 $1,491.13
EXHIBIT "A"
Page 2
NATIONAL CITY RATE SCHEDULE
July 1, 2007
CURRENT PROPOSED
MONTHLY MONTHLY
BOX TYPE REFUSE SERVICE RATE RATE
COLLECTION NUMBER YARDS
FREQUENCY OF BINS PER MONTH
1 4 52 $309.21 $327.33
2 4 104 $567.53 $600.80
3 4 156 $825.85 $874.26
4 4 208 $1,062.16 $1,145.59
5 4 260 $1,338.48 $1,416.94
6 4 312 $1,594.80 $1,888.28
7 4 364 $1,851.11 $1,959.61
1 5 65 $379.30 $401.53
2 5 130 S699.70 $740.71
3 5 195 51,020.09 11,079.88
4 5 260 $1,330.47 $1,408.46
5 5 325 $1,640.85 51,737.03
6 5 390 51.951.23 $2,065.60
7 5 455 $2,261.63 $2,394.20
1 6 78 $449.38 $475.72
2 6 156 5831.86 $880.62
3 6 234 $1,214.33 $1,285.51
4 6 312 $1,584.79 $1,677.68
5 6 390 $1,955.25 $2,069.86
6 6 468 $2,325.70 $2,462.02
7 6 546 $2,696.16 $2,854.20
EXHIBIT "A"
Page 3
National City Rate History Residential Commercial
07/01/94 $ 16.30 $ 98.83
07/01/95 $ 14.85 $ 90.07
07/01/96 $ 14.36 $ 87.04 1 -3.3% -3.4%
07/01/97 $ 13.95 $ 84.54 2 -2.9% -2.9%
07/01/98 $ 13.95 $ 84.54 3 0.0% 0.0%
07/01/99 $ 13.95 S 84.54 4 0.0% 0.0%
07/01/00 $ 13.95 $ 84.54 5 0.0% 0.0%
07/01/01 $ 14.83 $ 89.67 6 6.3% 6.1%
07/01/02 $ 14.83 $ 89.67 7 0.0% 0.0%
07/01/03 $ 15.33 $ 92.78 $ 3.4% 3.5%
07/01/04 $ 15.33 $ 92.78 9 0.0% 0.0%
07/01/05 $ 15.99 $ 98.95 10 4.3% 6.7%
X 07/01/06 $ 15.99 $ 98.95 10 0.0% 0.0%
1-4 07/01/07 $ 16.64 $ 104.75 11 4.1% 5.9%
H
-v"'1
a -
°a
Passed and adopted by the Council of the City of National City, California, on June 5,
2007 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Natividad, Parra, Ungab, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City erk of the City of ational City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2007-116 of the City of National City, California, passed and
adopted by the Council of said City on June 5, 2007.
City Clerk of the City of National City, California
By:
Deputy
AMENDMENT TO AGREEMENT
FOR COLLECTION OF
RUBBISH AND TRASH
IN THE CITY OF NATIONAL CITY
This Amendment to Agreement is made and entered into this 16th day of September 1997,
by and between the City of National City, hereinafter referred to as "CITY", and Edco Disposal
Corporation, hereinafter referred to as "CONTRACTOR".
RECITALS
A. On September 25, 1990, CITY and CONTRACTOR entered into an agreement
entitled "Agreement for Collection of Rubbish and Trash in the City of National City by and
between the City ofNational City and Edco Disposal Corporation for Services Rendered".
B. Said agreement was amended on June 22, 1993 pursuant to Resolution No. 93-86.
C. Said agreement was amended on November 9, 1993 pursuant to Resolution No.
93-176.
D. CITY and CONTRACTOR now desire to amend Section I of said agreement,
concerning the term of the agreement.
NOW, THEREFORE, the parties hereto mutually agree to amend Section I of the
Agreement for Collection of Rubbish and Trash in the City ofNational City by and between the
City of National City and Edco Disposal Corporation for Services Rendered, as follows:
TERM. The term of this Agreement shall be amended to commence October 1, 1997 and
expire June 30, 2003, provided however, that commencing July 1, 1998 and every year thereafter,
automatic one year extensions shall be applied to said Agreement so that the term of the
Agreement shall remain between five (5) and six (6) years.
Should either party desire that said automatic one year renewal and extension provision be
terminated, such party may give the other written notice of such termination not less than thirty
(30) days prior to July 1 of any year of the Agreement. Such notice will terminate the automatic
one year renewal and extension provision, and the Agreement shall remain in effect for the
balance of the term then outstanding.
This amendment is to remain in force so long as the Company is owned by Ed Burr. If the
Company is sold, the contract will revert to a fixed tern contract with the fixed term being from
the date of sale to the next anniversary date (1 July) plus one year.
Except as otherwise provided herein, all of the provisions of the Agreement for Collection
of Rubbish and Trash in the City of National City by and between the City of National City and
Edco Disposal Corporation for Services Rendered, dated September 25, 1990, and as amended
on June 22, 1993, and on November 9, 1993, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands on the date
first above stated.
APPROVED AS TO FORM:
•
George . Eiser, III
City Attorney
!1 Iw
George . Waters, Mayor
EDCO DISPOSAL CORPORATION
By:
By:
City of National City, California
COUNCIL AGENDA STATEMENT
MEETING DATE June 21,2005
28
AGENDA ITEM NO.
(- M TITLE
A Resolution to Approve a Rate Increase for Edco Disposal Corporation
PREPARED BY Jeff Servatius
EXPLANATION
DEPARTMENT Public Works EXT.4580
See Attached Report
J
CEnvironmental Review x N/A
)
Financial Statement
The proposed rate increase will fall on all recipients of the trash sAerv. Yed By: FinanceDirectorA Franchise Fee of 9% will be paid to the City.
Account No.
STAFF RECOMEIENQATION
Adopt the Resolution.
BOARD 1 COMMISSION BECOMMENDDTION
N/A
r,14/4 C 90-26
ATTACHMENTS ( Listed Below) Resolution No.
1. Resolution
2. EDCO letter of May 11, 2005 ,4e!U L #p$- / 3 }.
A•200 S11ev.7/03)
MI$ Approval
RESOLUTION NO. 2005 —
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
APPROVING A TRASH SERVICE RATE CHANGE
FOR EDCO DISPOSAL CORPORATION
WHEREAS, the last refuse service rate change for Edco Disposal
Corporation, the Citys contract refuse hauler, was In July 2003; and
WHEREAS, the rate for waste disposal is estimated to increase from $34.60
per ton to $35.54 per ton, effective July 1, 2005; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of National City that the proposed refuse service rate schedule, a copy of which is
attached hereto as Exhibit "A" and incorporated herein by reference, is hereby approved,
effective July 1, 2005.
PASSED and ADOPTED this 21`1 day of June, 2005.
Nick Inzunza, Mayor
ATTEST:
Michael Della, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attomey
Passed and adopted by the Council of the City of National City, Califomia, on June 21,
2005, by the following vote, to -wit:
Ayes: Councilmembers Inzunza, Morrison, Natiividad, Parra, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY:
By:
NICK INZUNZA
Mayor of the City of National City, California
City C rk of the City National City, Califomia
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2005-134 of the City of National City, California, passed and
adopted by the Council of said City on June 21, 2005.
By:
City Clerk of the City of National City, Califomia
Deputy
c2C C _3
AMENDMENT TO AGREEMENT
FOR COLLECTION OF
RUBBISH AND TRASH
IN THE CITY OF NATIONAL CITY
This Amendment to Agreement is made and entered into this 20th
day of May, 2003, by and between the City of National City, hereinafter
referred to as "CITY," and EDCO Disposal Corporation, hereinafter referred to
as "CONTRACTOR".
RECITALS
A. On September 25, 1990, CITY and CONTRACTOR entered
into an agreement entitled "Agreement for Collection of Rubbish and Trash in
the City of National City by and between the City of National City and EDCO
Disposal Corporation for Services Rendered."
B. Said Agreement was amended on June 22, 1993 pursuant
to Resolution No. 93-86, and 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, and on June 12,
2001, pursuant to Resolution No. 2001-88.
C. CITY and CONTRACTOR now desire to amend the
provisions of said Agreement pertaining to the rates charged by
CONTRACTOR, due to an increase in the tipping fee, and to reflect an
increase in the Consumer Price Index for San Diego.
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. That the National City Rate Schedule shall be as shown on
Exhibit "A", attached hereto and incorporated herein by reference, beginning
July 1, 2003.
2. Except as otherwise provided herein, all of the provisions of
the Agreement for Collection of Rubbish and Trash in the City of National City
by and between the City of National City and EDCO Disposal Corporation for
Services Rendered, dated September 25, 1990, and as subsequently
amended, shall remain in full force and effect.
Amendment to Agreement— EDCO
Collection of Rubbish and Trash
May 20, 2003
Page 2
IN WITNESS WHEREOF, the parties hereto have hereunto set their
hands on the date first above stated.
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
CITY OF NATIONAL CITY
Nick Inzu zn a
yor
EDCO DISPOSAL CORPORATION
(Two Signatures Required)
By:
Title:
By:
Title: — ��
•
AMENDMENT TO AGREEMENT
FOR COLLECTION OF
RUBBISH AND TRASH
IN THE CITY OF NATIONAL CITY
This Amendment to Agreement is made and entered into this 9th
day of November, 1993, by and between the City of National City, hereinafter
referred to as "CITY," and Edco Disposal Corporation, hereinafter referred to
as "CONTRACTOR."
RECITALS
A. On September 25, 1990, CITY and CONTRACTOR entered
into an agreement entitled "Agreement for Collection of Rubbish and Trash in the
City of National City by and between the City of National City and Edco
Disposal Corporation for Services Rendered."
B. Said agreement was amended on June 22, 1993 pursuant to
Resolution No. 93-86.
C. CITY and CONTRACTOR now desire to amend Section 1
of said agreement, concerning the term of the agreement.
NOW, THEREFORE, the parties hereto mutually agree to amend
Section 1 of the Agreement for Collection of Rubbish and Trash in the City of
National City by and between the City of National City and Edco Disposal
Corporation for Services Rendered, as follows:
TERM. The term of this agreement shall commence
November 10, 1993 and end on June 30, 1999.
Except as otherwise provided herein, all of the provisions of the
Agreement for Collection of Rubbish and Trash in the City of National City by
and between the City of National City and Edco Disposal Corporation for
Services Rendered, dated September 25, 1990, and as amended on June 22, 1993,
shall remain in full force and effect.
1
IN WITNESS WHEREOF, the parties hereto have hereunto set their
hands on the date first above stated.
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
George H. aters, Mayor
EDCO DISPOSAL CORPORATION
By:
2
AMENDMENT TO AGREEMENT
FOR COLLECTION OF
RUBBISH AND TRASH
IN THE CITY OF NATIONAL CITY
This Amendment to Agreement is made and entered into this 22nd day of
June, 1993, by and between the City of National City, hereinafter referred to as "CITY,"
and Edco Disposal Corporation, hereinafter referred to as "CONTRACTOR."
RECITALS
A. On September 25, 1990, CITY and CONTRACTOR entered into an.
agreement entitled "Agreement for Collection of Rubbish and Trash in the City of
National City by and between the City of National City and Edco Disposal Corporation
for Services Rendered."
B. CITY and CONTRACTOR now desire to amend various provisions
of said agreement.
NOW, THEREFORE, the parties hereto mutually agree to amend the
following provisions of the Agreement for Collection of Rubbish and Trash in the City
of National City by and between the City of National City and Edco Disposal Corporation
for Services Rendered, as follows:
1. Section 2.D., entitled "Definitions" 'Recyclable Material"' is hereby
amended to read as follows:
D. "RECYCLABLE MATERIAL" means "Designated
Recyclable Materials" as defined in Section 9.52.010 of the National City
Municipal Code.
2. Section 7 is amended to read as follows:
DUMP SITE: Contractor shall use disposal sites designated
by CITY. In this regard, Contractor shall pay whatever reasonable use fees
are charged for such a designated disposal site, and said fees shall be an
operating expense for purposes of setting rates hereunder. In any event,
Contractor will not burn any combustible substances within the City of
National City. All disposal activities of Contractor shall be conducted in
such a way as to. enhance, and not impair, the health, welfare, sanitation
and safety of the people of the City of National City.
1
3. That the National City Rate Schedule shall be as shown on Exhibit
"A," attached hereto and incorporated herein by reference, beginning July 1, 1993.
4. Except as otherwise provided herein, all of the provisions of the
Agreement for Collection of Rubbish and Trash in the City of National City by and
between the City of National City and Edco Disposal Corporation for Services Rendered,
dated September 25, 1990, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
on the date first above stated.
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
George H. Waters, Mayor
EDCO DISP9SAL CORPORATION
13--tvz/L)
By!
By:
AGREEMENT FOR COLLECTION OF RUBBISH
AND TRASH IN THE CITY OF NATIONAL CITY
BY AND BETWEEN THE CITY OF NATIONAL CITY
AND EDCO DISPOSAL CORPORATION
FOR SERVICES RENDERED
THIS AGREEMENT is entered into this 25th day
of September 1990, by and between the City of National
City, hereinafter referred to as "City" and EDCO Disposal
Corporation, hereinafter referred to as "Contractor."
RECITAL
The parties desire to enter into this agreement to
provide for the exclusive right and duty of EDCO to collect,
transport, recycle and dispose of garbage, rubbish and
recyclable material from single-family residential, multi-
family, commercial, industrial and from City -occupied
facilities in accordance with this agreement, the ordinances
of the City of National City, the regulations established by
the County of San Diego and all applicable State and Federal
Laws. Roll -off containers for construction debris and for
recycling are not included in this exclusive right.
SECTION 1. TERM: The term of this agreement shall be
from the date first written above and shall expire
November 17, 1994.
SECTION 2. DEFINITIONS: A. "GARBAGE" is all refuse
and waste, fruit, vegetable and animal matter, prepared and
intended for human consumption, and not so used.
1
B. "RUBBISH" is refuse and waste material, whether com-
bustible or noncombustible, not included within the
definition of garbage as herein defined, including but not
limited to paper, rags, glass, ashes and yard waste (leaves,
grass, tree and vine trimmings). It shall not include
plaster, rock, sand, dirt, automobile frames or fenders, or
waste material relating to building operations, construction
or repair. It further does not include hazardous or toxic
materials nor dead animals.
C. "RECYCLE" or "RECYCLING" means the process of
collecting, sorting, cleansing, treating, and reconstituting
materials that would otherwise become solid waste, and
returning them to the economic mainstream in the form of raw
material for new, reused, or reconstituted products which
meet the quality standards necessary to be used in the
marketplace. "Recycling" does not include "transformation."
D. "RECYCLABLE MATERIAL" is material that is subject to
the process of recycling, and includes such items as
newspaper, glass, ferrous and non ferrous metals, PET and
other plastics, cardboard, mixed paper, waste paper, yard
waste and other material mutually agreed upon.
SECTION 3. CONTRACTOR'S OBLIGATION TO COLLECT AND
RECYCLE GARBAGE AND RUBBISH: Contractor will collect and
remove all combustible and noncombustible rubbish and
garbage from the curbs, sidewalks or alleys within the city
2
limits of National City, as far as said garbage and rubbish
is placed properly for pickup; and Contractor will provide
all materials, supplies, equipment, and personnel necessary
to collect said rubbish and garbage pursuant to the terms of
this agreement. A .pilot curbside recycling program shall be
established in October 1990. In April, May and June of
1991, the results of the pilot program will be reviewed by
Contractor and by City. If agreement can be reached on the
scope and price of the service, a full citywide curbside
recycling program will be established in July 1991 with the
costs thereof to be coordinated with the October 1991
scheduled rate review. If agreement cannot be reached, the
City will advertise for bids to accomplish curbside
recycling.
Contractor shall collect and handle all appropriate
materials included within the term "Recyclable Material"
defined in Section 2, and as mandated by existing or future
City, County, State or Federal legislation or requirements.
Original and replacement containers for the household
accumulation of recyclable material shall be provided by
Contractor without charge and shall remain the property of
Contractor.
SECTION 4. RATES FOR CONTRACTOR'S SERVICES: Contractor
shall charge no more than the maximum rate set forth in the
Rate Schedule, which is exhibit "A" hereto and by this
reference incorporated herein as though fully set forth here-
3
inafter. Contractor may charge less than the rates in the
Rate Schedule, but not more. Any rate charged to a classifi-
cation of user shall be charged uniformly to all users in
that classification. In view of the unknown elements of
retrieval costs of recycling, the unpredictable changes in
landfill
tipping
volatility of the
fees, avoided
recycling market
tipping fees and the
among other factors, the
rate schedules proposed by Contractor will be accompanied by
a report from an outside auditing firm (to be selected by
City and paid by Contractor) covering both the refuse collec-
tion and recycling operations. Funds obtained from the sale
of recycled items shall be used to offset other elements of
cost in consideration of an appropriate rate structure.
Charges to commercial or industrial customers who present
large amounts of recyclable material may be offset to
acknowledge the value of such material to the customer. The
Rate Schedule may be modified from time to time as provided
later in this agreement.
SECTION 5. EXTRA COMPENSATION: In the event the volume
of rubbish and/or garbage left for pickup by a user is
excessive or, in the event that accessibility to pickup
points is restricted or impaired, thereby causing additional
cost of collection to Contractor, Contractor shall
negotiate, in good faith, a collection fee with the affected
user. In the event a dispute arises between Contractor and
4
a user as to the excessiveness of the volume of trash left
for pickup, City shall make the final determination as to
excessiveness.
SECTION 6. STANDARD OF SERVICE: In rendering services
pursuant to this agreement, Contractor shall use equipment
that is in good operable condition, and good, clean appear-
ance. All field employees of Contractor who deal with the
public shall wear uniforms, first reasonably approved by the
City Manager of City, and all employees shall be required by
Contractor to be courteous and helpful in their dealings
with the public.
Contractor's employees are required to remove properly
contained rubbish and garbage but have no responsibility to
clean up a littered area when the fault is overfilled
containers, dumping by vandals or otherwise poor housekeep-
ing. Contractor is required to clean up litter or liquid
spills caused by his operation, and this must be done
immediately.
SECTION 7. DUMP SITE: Contractor shall either furnish
its own disposal site, or use disposal sites provided to it
by the County of San Diego. In any event, Contractor will
not burn any combustible substances within the City of
National City. All disposal activities of Contractor shall
be conducted in such a way as to enhance, and not impair,
the health, welfare, sanitation and safety of the people of
the City of National City.
5
Upon 30 days written notice, City may require Contractor
to use a disposal site designated by City, provided that
adequate acess is available to Contractor to provide reason-
able use of such a designated disposal site. In this
regard, Contractor shall pay whatever reasonable use fees
are charged for such a designated disposal site, and said
fees shall be an operating expense for purposes of setting
rates hereunder.
SECTION 8. FREQUENCY OF SERVICE: Contractor shall
collect rubbish and garbage from residential users at least
one time per week, with collections from any user being on
the same day of the week, such day to be designated by
Contractor.
Collection from commercial, industrial, and manufactur-
ing users, except recycling, shall be as frequently as
agreed upon between Contractor and user, but not less often
than weekly.
SECTION 9. HOURS FOR COLLECTION: All collection
activities of Contractor pursuant to this contract shall
occur between the hours of 7:00 a.m. and 4:30 p.m.
SECTION 10. CARE OF USERS' CONTAINERS: Contractor
shall insure that its employees make reasonable efforts to
avoid damage to users' rubbish and garbage containers.
SECTION 11. SERVICE TO CITY: Contractor shall collect
garbage and rubbish from City -owned property, as frequently
6
as is necessary to prevent the accumulation of rubbish or
garbage on City -owned property, without charge to City.
Collection service includes removal of sweeping debris.
SECTION 12. BIANNUAL CLEANUP: Contractor agrees to
provide two annual cleanup campaigns and to cooperate with
City as to the date and manner of conducting said cleanup
campaigns.
SECTION 13. CONTRACTOR TO OBEY ALL LAWS IN THE PERFORM-
ANCE OF THIS CONTRACT: Contractor warrants that it will
comply with all Local, State and Federal laws and regula-
tions applicable to its operation.
SECTION 14. COLLECTION OF BULKY ITEMS: Contractor is
required to establish a program for pickup, recycling as
required and disposal of major household appliances (stove,
refrigerator, washer, dryer, etc.), and major household
furniture (couch, chair, table, mattress, etc.). Said
program shall include a procedure for informing Contractor's
customers of the existence of said program, and of the
details of said program (e.g., pickup times).
The program shall require pickup on Saturday. An
appointment is required
EDCO as late as Friday
Provision also shall be
having doors are rendered
which may be made by contact
for pickup the following
with
day.
made to ensure that set out items
safe by either removal of the door
latch mechanism, by welding the doors shut or by removal of
the doors, such action to occur within eight (8) working
7
hours of notification to Contractor by the customer. Costs
for this program are considered a basic business cost to be
included in overall rate establishment and without
additional charge to the* customer. It is understood
that this program does not include removal of autos or
automotive components, construction or demolition debris,
dirt, sand, concrete, asphalt, etc. These type materials
are to be hauled on a for -a -fee basis. Bulky items are to
be set out at normal trash location.
SECTION 15. INSURANCE: Contractor, at its sole cost
and expense, shall purchase and maintain throughout the term
of this agreement, the following insurance policies:
A. Automobile insurance covering all bodily injury and
property liability incurred during the performance of this
agreement, with a minimum coverage of $10,000,000 combined
single limit per accident. Such automobile insurance shall
include non -owned vehicles.
B. Comprehensive general liability insurance, with
minimum limits of $1,000,000 combined single limit per
occurrence, covering all bodily injury and property damage
arising out of its operation under this agreement.
C. Workers' compensation insurance covering all of its
employees and volunteers.
D. The aforesaid policies, except for the workers'
compensation policy, shall name City and its officers,
8
agents, and employees as additional insureds, and shall
constitute primary insurance, with respect and limited only
to Contractor's performance under this agreement, as to
City, its officers, agents and employees, so that any other
policies held by City shall not contribute to any loss
under said insurance. Said policies shall provide for
thirty (30) days prior written notice to City of
cancellation or material change.
E. Concurrently with the execution of this agreement,
Contractor
sufficient
shall furnish City with a certificate or other
proof that the above insurance provisions have
been complied with. Said certificate or other proof shall
be filed with and
Contractor does
full force and
agreement, City
approved by the City Risk Manager. If
not keep all of such insurance policies in
effect at all times during the term of this
may elect to treat the failure to maintain
the requisite insurance as a breach of the contract and
terminate the agreement as provided herein.
F. If any required insurance coverage is provided on a
"claims made" rather than "occurrence" form, Contractor
shall maintain such insurance coverage for three years after
expiration of the term (and any extensions) of this
agreement.
G. Insurance provisions may be updated at the option of
City every three years.
HOLD HARMLESS: Contractor shall at its own risk, cost
and expense, indemnify, defend, and hold harmless, City,
9
its officers, agents and employees from and against any and
all liability, loss, expense, including defense costs, legal
fees, and claims for damages, arising from Contractor's
performance under the terms of this agreement.
SECTION 16. FRANCHISE FEE: As a franchise fee,
Contractor will pay the City of National City a sum of money
equal to two percent (2%) of Contractor's gross collections
derived from services rendered pursuant to this agreement.
The franchise fee will increase to 5% effective October 1,
1992 and will increase by 1% on July 1 of each succeeding
year for the remainder of the contract term. Said franchise
fee will be payable on the 20th day of each month. City
shall have the right, at reasonable
inspect Contractor's books and records
and, correct payment of the franchise fee.
SECTION 17. EXCLUSIVE CONTRACT: City hereby grants to
Contractor, during the term of this agreement, the exclusive
right to collect all rubbish and garbage and recyclable
material within the City of National City, as it now, or in
the future, exists. City will not grant, during the term of
this agreement, any other person the right to collect any
rubbish or garbage or recyclable material for compensation
within its city limits. Nothing herein is intended to
prevent customary agreements to service commercial/indus-
trial facilities for recyclable material from roll -off
containers nor to prevent individuals from recycling their
times and places, to
to insure
the proper
10
own material nor charitable organizations from recycling
donated materials. Roll -off containers for construction
debris are not included in this exclusive right.
SECTION 18. NOTICE OF DEFAULT OF CONTRACT: If City
determines Contractor is in default of any term or condition
of this agreement, it shall give Contractor written notice
of said default, and Contractor shall correct said default
within 30 days. If Contractor fails to correct fault to the
satisfaction
cancel this
of City, City may, by written communication,
agreement and purchase at the then fair market
value all of Contractor's equipment, books, records, and
supplies, used by it in the performance of this agreement,
and to take immediate possession of said property and use it
as City deems appropriate.
SECTION 19. CITY CONTROL DURING NATURAL DISASTER OR
DECLARED DISASTER OR LABOR DISPUTE: In the event
natural disaster
of a local
or any declared disaster, City may direct
and control and use all of the equipment of Contractor used
by it in the performance of this agreement.
Furthermore, in the event of a labor dispute, which
prevents Contractor from performing the terms and conditions
of this contract, City may, but need not, take over
Contractor's equipment and operate the same for rubbish and
garbage collection purposes within the City of National
City.
11
In the event any such labor dispute is not settled
within 120 days after City exercises its right to take over
Contractor's equipment and operate the same, City may, but
need not, purchase all of Contractor's equipment, books, and
records, necessary to perform this agreement at the then
fair market value, cancel this agreement and use said
property as it deems proper.
SECTION 20. CONTRACTOR'S PERFORMANCE BOND: Contractor
shall deliver to the City Treasurer a performance bond
issued by a surety licensed to engage in business in the
state of California, or cash or government bonds in the sum
of $25,000.00 to guarantee its faithful performance of this
contract.
SECTION 21. CONTRACTOR'S OFFICE: During the term of
this agreement, Contractor shall maintain a business office
with regular office hours at a location in the City of
National City, which provides convenient access to the users
of Contractor's services. Contractor shall keep the City
Manager of City and its users informed of the location of
said office.
SECTION 22. BILL AND COLLECT: Contractor shall, at its
own expense, bill and collect service charges due it,
pursuant to this contract.
SECTION 23. APPLICATIONS FOR RATE CHANGE: Contractor
may apply, annually, for changes in the rates charged
12
pursuant to this
writing, addressed
the financial and
change application
agreement. Said application shall be in
to the City Manager of City, and contain
statistical data upon which the rate
is made.
By agreement, annual "cost of
living" changes will be based upon the CPI for San Diego and
will be equal to the percentage change in the index with,
however, a cap of 6%. Thereafter, after report and
recommendation to it by its manager, the City Council
will act on said application, either grant the same, denying
the same or granting some different rate schedule than that
applied for. Such rate change shall be effective on
October 1 of each year.
Changes in the rates (tipping fees) charged by the
owners/operators. of sanitary landfill sites utilized by the
Contractor shall be considered as "pass -through" costs.
Upon
fee
for
notification
to
the
Contractor
of a proposed tipping
change, the Contractor should submit a letter
rate change to the City, defining the impact
request
of
change on his costs, and proposing a rate change that
exactly recoup the tipping fee change. Any approved
change reflecting a change in tipping fees may be concurrent
with the change in tipping fees.
SECTION 24. NON -ASSIGNABILITY: Contractor's rights and
duties under this contract cannot be assigned, in whole or
in part, without the consent of the City Council first
such
will
rate
13
obtained in the form of a resolution duly passed and
adopted.
SECTION 25. INDEPENDENT CONTRACTORS: City and
Contractor are independent contractors with respect to each
other, and none have the authority to incur obligations of
any kind in the name of or for the account of each other, or
to commit or bind each other without the other's written
consent.
SECTION
Contractor, in the performance of the service to
herein, shall comply with all statutes, State
and all ordinances, rules, and regulations of
26. COMPLIANCE WITH APPLICABLE LAW:
be provided
or Federal,
the City of
National City, whether now in force or subsequently enacted.
SECTION 27. PRIOR AGREEMENTS. This agreement shall
supersede all prior agreements between City and Contractor.
CITY OF NATIONAL CITY
APPROVED AS TO FARM BY:
George H. Elser, III
City Attorney
ATTEST:
By:
^1111
Yu_ . I AA A.J1 .
CITY CLERK
EDCO DISPOSAL CORPORATION
BY:
14
NATIONAL CITY RATE SCHEDULE
10-01-90
RUBBISH AND GARBAGE
MONTHLY
RATE
1. Residential
Per month residential single
family properties.
For the second and each
additional residential unit
in multiple dwellings which
do not exceed four units
8.75
6.60
2. Trailer Parks and Motels ($5.00 Min.)
One time per week, per unit, per month 6.20
3. Apartment Houses (no minimum)
One time per week, per unit, per month 6.15
4. Senior Citizen - Residential
Per month 7.10
EXHIBIT 1
NATIONAL CITY RATE SCHEDULE
10-01-90
RUBBISH AND GARBAGE
MONTHLY
RATE
1. Residential
Per month residential single
family properties.
For the second and each
additional residential unit
in multiple dwellings which
do not exceed four units
2. Trailer Parks and Motels ($5.00 Min.)
One time .per week, per unit, per month
3. Apartment Houses (no minimum)
One time per week, per unit, per month
4. Senior Citizen - Residential
Per month
8.75
6.60
6.20
6.15
7.10
EXHIBIT A
NATIONAL CITY RATE SCHEDULE
10-1-90
RUBBISH AND GARBAGE
(COMMERCIAL AND INDUSTRIAL MONTHLY
ESTABLISHMENTS) RATE
Up to (2) 40 gallon containers
One time per week - per month
Up to (2) 40 gallon containers
Two times per week - per month
Up to (2) 40 gallon containers
Three times per week - per month
Up to (2) 40 gallon containers
Four times per week - per month
Up to (2) 40 gallon containers
Daily (Six days/Monday thru
Saturday)
Additional or unusual accumulation
of rubbish
10.25
16.30
21.00
25.95
33.90
6.15
NATIONAL CITY RATE SCHEDULE
10-1-90
BOX TYPE REFUSE SERVICE
NUMBER COLLECTION YARDS PER MONTHLY
OF BINS FREQUENCY MONTH RATE
1 1 13 54.25
1 2 26 87.30
1 3 39 120.35
1 4 52 153.40
1 5 65 186.50
1 6 78 219.50
1 7 91 271.75
2 1 26 110.20
2 2 52
174.00
2 3 78 238.95
2 4 104 306.80
2 5 130 355.55
2 6 156 404.85
2 7 182 475.60
3 1 39 161.25
3 2 78 255.20
3 3 117 349.15
3 4 156 405.15
3 5 195 523.75
3 6 234 630.45
3 7 273 777.80
4 1 52 197.20
4 2 104 321.30
4 3 156 445.75
4 4 208 522.00
4 5 260 673.95
4 6 312 759.20
4 7 364 999.90
5 1 65 234.30
5 2 130 388.60
5 3 195 543.15
5 4 260 667.00
5 5 325 801.00
5 6 390 966.85
5 7 455 1186.10
6 1 78 271.15
6 2 156 455.90
6 3 234 640.60
6 4 312
737.20
6 5 390 892.60
6 6 468 1086.35
6 7 546 1336.00
FIRST AMENDMENT TO THAT CERTAIN AGREEMENT
BETWEEN THE CITY OF NATIONAL CITY AND
ED BURR, DOING BUSINESS AS EDCO DISPOSAL
CORPORATION DATED SEPTEMBER 6, 1977.
WHEREAS, the City of National City, hereinafter referred to as
"CITY" and ED BURR, doing business as EDCO DISPOSAL CORPORATION, herein-
after referred to as "CONTRACTOR", did on the 6th day of September, 1977.
enter into an agreement providing for contractor to have an exclusive right
to collect "rubbish" and "garbage" in the City, and
NOW, THEREFORE, the parties hereto, for and in consideration of the
mutual covenants herein expressed and for other good and sufficient consi-
deration, do agree as follows:
Section 21. Term of Contract.
Section 21 of the agreement of the 6th day of September, 1977, by and
between City and contractor, is hereby amended to read as follows:
Section 21. The term of this contract shall be from
November 18, 1980 until November 17,1990.
IN WITNESS WHEREOF the parties hereto have executed this agreement
the 3-41 day of )1..ei' 1980.
CITY OF NATIONAL Ado
By: /:'
KIL
N, Mayor
EDCO DISPOSAL CORPORATION
By: ai�G -'fr(y
ED BURR
•
AGREEMENT FOR COLLECTION OF RUBBISH
AND TRASH IN THE CITY OF NATIONAL CITY
BY AND BETWEEN THE CITY OF NATIONAL
CITY AND EDCO CORPORATION
FOR SERVICES RENDERED
WHEREAS, EDCO CORPORATION (Contractor) is the suc-
cessor in interest to rights to collect trash, rubbish, and
garbage in the CITY OF NATIONAL CITY (City) pursuant to a
contract executed on the 6th day of August, 1962 between
the City and Raymond T. Keener, and
WHEREAS, various amendments to the aforementioned
contract have occurred in the intervening years, and
WHEREAS, Contractor desires the City's consent to
an increase in rates for services rendered by and pursuant
to said contract, and
WHEREAS, City and Contractor desire to make other
minor modifications of said contract;
NOW, THEREFORE, for and in consideration of the con-
sideration herein contained, and for other good and fair con-
sideration, the parties hereto do agree as follows:
SECTION 1. DEFINITIONS:
A. GARBAGE is defined as all refuse and waste,
fruit, vegetable and animal matter, prepared and intended for
human consumption,' and not so used.
B. RUBBISH is refuse and waste material, whether
combustible or noncombustible, not included within the defini-
tion of garbage as herein defined, including but not limited
to paper, rags, leaves, glass, cans, ashes, tree and vine trim-
mings. It shall not include plaster, rock, sand, dirt, automobile
frames or fenders, or waste material pertaining to building op-
erations, construction or repair, water heaters or furniture.
SECTION 2. CONTRACTOR'S OBLIGATION TO COLLECT
GARBAGE AND RUBBISH: The Contractor will collect and remove
all combustible and noncombustible rubbish and garbage from
the curbs, sidewalks or alleys within the City limits of
National City, so far as said garbage and rubbish is placed
properly for pickup; and the Contractor will provide all materials,
supplies, equipment, and personnel necessary to collect said rub-
bish and garbage pursuant to the terms of this agreement.
SECTION 3. RATES FOR CONTRACTOR'S SERVICES:
Contractor shall charge no more than the maximum rate set forth
in the Rate Schedule which is Exhibit "A" hereto and by this
reference incorporated herein as though fully set forth herein-
after. Contractor may charge less than the rates in the Rate
Schedule, but not more. Any rate charged to a classification
of user shall be charged uniformly to all users in that classi-
fication.
SECTION 4. EXTRA COMPENSATION: In the event the
volume of rubbish and/or garbage left for pickup by a user is
greater than the volume limits set forth on Exhibit "A", or,
in the event that accessability to pickup points is restricted
or impaired, thereby causing additional cost of collection to
Contractor, the Contractor shall negotiate, in good faith, a
collection fee with the affected user.
2
SECTION 5. STANDARD OF SERVICE: In rendering
services pursuant to this contract, Contractor shall use
equipment which is in good, operable condition, and good, clean
appearance.
public shall
City Manager
Contractor to
the public.
All employees of Contractor who deal with the
wear uniforms, first reasonably approved by the
of City, and said employees shall be required by
be courteous and helpful in their dealings with
SECTION 6. DUMP SITE: Contractor shall either fur-
nish its own disposal site, or use disposal sites provided
to it by the County of San Diego. In any event, Contractor
will not burn any combustibles within the City of National City.
All disposal activities of Contractor shall be conducted in
such a way as to enhance, and not impair, the health, welfare,
sanitation and safety of the people of the City of National City.
Upon 30 days written notice, the City may require
Contractor to use a disposal site designated by it, provided
that adequate access is available to Contractor to provide
reasonable use of such a designated disposal site. In this
regard, Contractor shall pay whatever reasonable use fees
the City charges for such a designated disposal site, and said
fees shall be an operating expense for purposes of setting
rates hereunder.
SECTION 7. FREQUENCY OF SERVICE: Contractor shall
collect rubbish and garbage from residential users at least
one per week, with collections from any user being on
3
the same day of the week, such day to be designated by the
Contractor. In this regard, Contractor shall not require
residential users to segregate rubbish and garbage into sep-
arate containers.
Collection from commercial, industrial, and manu-
facturing users shall be as frequently as agreed upon between
Contractor and user, charges being according to the Rate
Schedule (Exhibit "A") .
SECTION 8. HOURS FOR COLLECTION: A11 collection
activities of Contractor pursuant to this contract shall occur.
between the hours of 7:00 a.m. and 4:30 p.m.
SECTION 9. CARE OF USER'S CONTAINERS: Contractor
shall insure that its employees make reasonable efforts to
avoid damage to user's rubbish and garbage containers.
SECTION 10. FREE SERVICE TO CITY: Contractor shall
collect garbage and rubbish from City owned property, as fre-
quently as is necessary to prevent the accumulation of rubbish
or garbage on City owned property, without charge to the City.
Free collection service includes service to City owned housing
units.
SECTION 11. INSURANCE: During the term of this
contract, Contractor shall maintain a policy of public lia-
bility and property damage insurance with combined single
limits of at least $500,000.00, and $50,000.00 as to property
damage,on which policy the City of National City shall be
named as a co-insured. The existence of said insurance shall
be evidenced by delivery to the City of a Certificate of
Insurance requiring 30 days written notice of cancelation
of said insurance to the City in care of its City Manager at
his office in the Civic Center, 1243 National Avenue, National
City, California.
Contractor will likewise maintain, and deliver to
the City a similar certificate, workers compensation insurance
covering all of its employees.
SECTION 12. CONTRACTOR TO OBEY ALL LAWS IN THE
PERFORMANCE OF THIS CONTRACT: The Contractor warrants that it
will comply with all local, state and federal laws and regula-
tions applicable to its operations.
SECTION 13. FRANCHISE FEE: As a franchise fee the
Contractor will pay the City of National City a sum of money
equal to two percent (2%) of its gross receipts derived from
services rendered pursuant to this agreement. Said franchise
fee will be payable annually on the 30th day of June. City
shall have the right, at reasonable times and places, to inspect
Contractor's books and records to insure the proper and cor-
rect payment of the franchise fee. Upon six months written
notice, City may increase the franchise fee to a maximum of four
•percent of gross receipts. "In this regard Contractor will keep
its books and records in National City, will deliver them for
inspection to the office of the City Manager, Civic Center,
National City, California, upon demand.
SECTION 14. EXCLUSIVE CONTRACT: To the extent it
5
is legally able, the City hereby grants to Contractor, during
the term of this agreement, the exclusive right to collect
all rubbish and garbage within the City of National City, as
it now, or in the future, exists. The City will not grant,
during the term of this agreement, any other person the right
to collect any rubbish or garbage for compensation within its
City limits.
SECTION 15. NOTICE OF DEFAULT OF CONTRACT: If
City determines Contractoris in default of any term or con-
dition
notice
within
within
of this agreement, it shall give Contractor written
of said default, and Contractor shall correct the same
30 days. If Contractor fails to correct said default
30 .days,
City may, by written communication, cancel this
agreement and purchase at the then fair market value all of the
Contractor's equipment, books, records, and supplies, used by it
in the performance of this agreement, and to take immediately
possession of said property and use it as the City deems appropriate
SECTION 16. CITY CONTROL DURING NATURAL DISASTER
OR DECLARED DISASTER OR LABOR DISPUTE: In the event of a local
natural disaster or any declared disaster, the City may direct
and control and use all of the equipment of the Contractor used
by it in the performance of this agreement.
Furthermore, in the event of a labor dispute which
prevents contractor from performing the terms and conditions of
this contract, City may, but need not, take over Contractor's
equipment and operate the same for rubbish and garbage collectio:
purposes within the City of National City.
In the event any such labor dispute is not settled
within 120 days after City exercises its right to take over
Contractor's equipment and operate the same, the City may, but
need not, purchase all the Contractor's equipment, books, and
records, necessary to perform this agreement at the then fair
market value, cancel this agreement and use said property as
it deems proper.
SECTION 18. CONTRACTOR'S PERFORMANCE BOND: Contract-
or shall deliver to the City Treasurer a performance bond is-
sued by a surety licensed to engage in business in the state
of California, or cash, or government bonds in the sum of
$25,000.00 to guarantee its faithful performance of this
contract.
SECTION 19. CONTRACTOR'S OFFICE: During the term
of this agreement, Contractor shall maintain a business office
with regular office hours at a location in the City of National
City which provides convenient access to the users of Contractor's
services. Contractor shall keep the City Manager of City and
its users informed of the location of said office.
SECTION 20. BILL AND COLLECT:- The Contractor shall,
at its own expense, bill and collect service charges due it
pursuant to this contract.
SECTION 21. TERM OF CONTRACT: The term of this
contract
August, 1982.
September 1, 1977 to 31st day of
shall be from
ri•-)14 t347z Igioov /q8o Cl/Y/27-f
esnn, 7 I ekIGV 1 j80 -1-c) 171UOV1 1cgo
SECTION 22. APPLICATIONS FOR RATE CHANGE: Contractor
may, from time to time, apply for changes in the rates -charged •
pursuant to this agreement. Said application shall be in writing,
addressed to the City Manager of City, and contain the financial
and statistical data upon which the rate change application is
made. Thereafter, after report and recommendation to it by its
manager, the City Council will act on said application, either
grant the same, denying the same or granting some different
rate schedule than that applied for.
SECTION 23. NON -ASSIGNABILITY: Contractor's rights
and duties under this contract cannot be assigned, in whole
or in part, without the consent of the City Council first ob-
tained in the form of a Resolution duly passed and adopted.
Dated this day of September, 1977.
ATTEST:
City Clerk
8
CITY OF NATIONAL CITY
BY:
KILE MORGAN, Mayor
EDCO CORPORATION
BY:
EDWARD BURR, President
San Diego County Franchise City Rates Proposed July 1, 2013
Residential Rates
City Total Effective Date
National City $17.47 Proposed 7/1/13
Chula Vista $17.49 Effective 9/1/12
Escondido $18.13 Effective 1/1/12
Coronado $18.65 Proposed 7/1/13
La Mesa $19.09 Proposed 7/1/13
Del Mar $19.23 Proposed 7/1/13
Santee $19.51 Proposed 7/1/13
Encinitas $19.59 Proposed 7/1/13
Vista $19.85 Proposed 7/1/13
Oceanside $19.87 Proposed 7/1/13
Carlsbad $20.20 Proposed 7/1/13
Lemon Grove $20.44 Proposed 7/1/13
Chula Vista $20.58 Effective 9/1/12
San Marcos $20.88 Effective 7/1/12
Poway $20.91 Proposed 7/1/13
El Cajon $21.61 Proposed 7/1/13
Solana Beach $23.72 Proposed 7/1/13
Imperial Beach $27.81 Effective 7/1/13
AP-. CALIFORNIA
Mayor
Ron Morrison
Council Members
Louis Naiividad
Alejandra Sotelo-Solis
Mona Rios
Jerry Cano
N TIOfj . CITV
�11ICOBpO8AT8D
Office of the City Attorney
MEMORANDUM
City Attorney
Claudia Gacitua Silva
Deputy City Attomey
Jennifer Knight
TO: Mayor and City Council DATE: May 21, 2013
FROM: Senior Assistant City Attorney
SUBJECT: Proposition 218 and Proposition 26 Analysis of EDCO's Proposed Increase in
Rates for Refuse Collection Services
INTRODUCTION
The City of National City and EDCO Disposal Corporation ("EDCO") entered into the
Agreement for Collection of Rubbish and Trash in the City of National City by and between the
City of National City and EDCO Disposal Corporation, dated September 25, 1990
("Agreement"). The Agreement has been amended several times. The last amendment was on
July 1, 2007 to adjust the rate schedule.
Section 23 of the Agreement discusses applications for rate changes, annual "cost of living"
changes, and "changes in the rates (tipping fees) charged by the owners/operators of sanitary
landfill sites ...." This Section allows EDCO to apply annually for changes in the rates
charged pursuant to the Agreement. This Section goes on to say that "upon notification to
[EDCO] of a proposed tipping fee change, [EDCO] should submit a letter request for rate change
to the City, defusing the impact of such change on his costs, and proposing a rate change that will
exactly recoup the tipping fee change." Section 23 says that the application must be in writing
and contain the financial and statistical data upon which the rate change application is made.
Section 23 also says that the tipping fees "shall be considered as `pass -through' costs." In
addition, Section 23 says that the annual "cost of living" changes will be based upon the
Consumer Price Index ("CPI") for San Diego and will be equal to the percentage change in the
index, with a cap of 6%.
EDCO has applied for an increase in rates pursuant to Section 23. The increase is based on an
increase in tipping fees, a decrease in revenue from recyclables sold, and an increase based on
the CPI of 2.71%.
1243 National City Boulevard; National City, California 91950-4301
Tel.: (619) 336.4220 Fax: (619) 336.4327
ANALYSIS
I. THE PROPOSED INCREASE TO THE FEES FOR REFUSE COLLECTION
SERVICES IS SUBJECT TO THE NOTICE AND MAJORITY PROTEST
REQUIREMENTS OF PROPOSITION 218, BUT NOT TO THE VOTER
APPROVAL REQUIREMENTS.
In 1996, voters passed Proposition 218 to amend the California Constitution to require voter
approval for certain kinds of assessments and fees. Shortly thereafter, the California Legislature
adopted the Proposition 218 Omnibus Implementation Act, California Government Code
sections 53750 through 53756. Proposition 218 provides that voter approval is required for an
increase in any "property related fee or charge" except for sewer, water, and refuse collection:
Except for fees or charges for sewer, water, and refuse collection services,
no property related fee or charge shall be imposed or increased unless and
until that fee or charge is submitted and approved by a majority vote of the
property owners of the property subject to the fee or charge, or at the
option of the agency, by a two-thirds vote of the electorate residing in the
affected area.
Cal. Const. art. XIIID, section 6(c).
Although charges for refuse collection services are not subject to the voter approval requirements
of section 6(c), the City must comply with the notice and majority protest requirements of Article
XIIID, section 6(a). Cal. Const. art. XIIID, section 6(c). Cal. Gov't Code section 53755.
A. The City has Complied with the Proposition 218 Notice Requirements.
Pursuant to Proposition 218, the City must provide written notice by mail of the proposed
increase in the fee to the "record owner of each identified parcel" upon which the increase in the
fee is proposed for imposition. "Record owner" means the owner of a parcel whose name and
address appears on the last equalized secured property tax assessment roll. Cal. Gov't Code
section 53750(j).
The notice shall include:
(a) the amount of the increase in the fee proposed to be imposed upon each parcel;
(b) the basis upon which the amount of the increase in the fee proposed fee was
calculated;
(c) the reason for the increase in the fee; and
(d) the date, time, and location of a public hearing on the proposed increase to the fee.
Cal. Const. art. XIIID, section 6(a).
May21, 2013
2 Prop 218 and 26 Analysis of
EDCO's Proposed Rate Increase
Notice of the proposed increase in the fee may be given by including it in the agency's regular
billing statement for the fee or by any other mailing by the agency to the address to which the
agency customarily mails the billing statement for the fee. Cal. Gov't Code section 53755(a)(1).
However, this Section does not change the definition of "record owner" in California
Government Code section 53750(j). Therefore, if the property tax rolls provide an address for the
owner of the parcel that is different than the billing or service address, a notice must be sent to
the "record owner" as defined by California Government Code section 53750(j).
A copy of the Notice of Public Hearing to Consider Proposed Rate Increase for Refuse Services
(Notice) is attached. It complies with all of the requirements of Proposition 218. EDCO
included the Notice in the regular billing statement for refuse services. If the property tax rolls
provided an address for the owner of the parcel that is different than the billing or service
address, EDCO also sent the Notice to the "record owner" of the parcel as defined by California
Government Code section 53750(j).1
B. The City Must Comply with the Proposition 218 Majority Protest Requirements.
Pursuant to Proposition 218 and the implementing legislation, the City must comply with the
following requirements:
1) The City must conduct a public hearing on the proposed increase to the fee not
less than 45 days after mailing the notice.
2) During the public hearing, the City Council must hear and consider all objections
and protests against the proposed increase in the fee. However, verbal protests will not be
counted in calculating a majority protest to the proposed increased fee.
3) The City shall count one written protest per parcel, filed by an owner or tenant of
the parcel in calculating a majority protest to the proposed increased fee.
4) The written protest must be received by the City Clerk prior to the close of the
public hearing. The written protest must include an original signature, identification of the parcel
by parcel number or address, and a statement of protest against the increase in the rate. Written
protests by e-mail or fax will not be accepted.
5) If written protests against the proposed increase in the fee are presented by a
majority of owners of the identified parcels, the City shall not impose the increase to the fee.
Cal. Const. art. XIIID, section 6. Cal. Gov't Code section 53755.
The City has preserved any authority it may have to record or enforce a lien on the parcel to which service is
provided by mailing the Notice to the record owner's address shown on the last equalized assessment roll if that
address is different than the billing or service address.
May21, 2013 3 Prop 218 and 26 Analysis of
EDCO's Proposed Rate Increase
II. THE PROPOSED INCREASE IN THE FEES FOR REFUSE COLLECTION
SERVICES IS NOT A SPECIAL TAX UNDER PROPOSITION 26.
A. There are Seven Exceptions to the Definition of a Special Tax under Proposition 26.
Proposition 26 was adopted by the voters in November 2010. Proposition 26 is a constitutional
amendment which expands the revenue -raising restrictions placed on state and local
governments by the constitutional amendments adopted by Propositions 13, 62, and 218.
Since the enactment of Proposition 218, all "taxes" imposed by local government are either
general taxes or special taxes. Cal. Const. art. XIII C, section 2(a). Special taxes are taxes
imposed for a specific purpose, as distinguished from general taxes which are imposed for
general governmental purposes. Cal. Const. art. XIII C, sections 1(a), (d). Given that the
proposed increase in fees for refuse services is assessed for a specific purpose, and the funds
generated from the proposed increase are not to be used for general governmental purposes, it is
analyzed as a special tax.
Local governments may not "impose, extend, or increase" any special tax without a two-thirds
vote of the electorate. Cal. Const. art. XIII C, section 2(d). Prop 26 added a broad definition of
"tax" to the State Constitution. Griffith v. City of Santa Cruz, 207 Cal. App. 4th 982, 995-996
(2012). A tax is "any levy, charge, or exaction of any kind imposed by a local government,"
unless it falls within one of the following seven exceptions:
(1) A fee for a benefit or privilege provided directly to the fee payer
that is not provided to those not charged and that does not exceed
the reasonable cost of providing the benefit or privilege;
(2) A fee for a service or product provided directly to the fee payer
that is not provided to those not charged and that does not exceed
the reasonable cost of providing the service or product;
A fee for reasonable regulatory costs for issuing licenses and
permits, performing investigations, inspections, audits, and
administrative enforcement and adjudication;
(4) A fee for entrance to or use of local government property or the
purchase, rental, or lease of local government property;
(5) A fine or penalty imposed by the judiciary for a violation of law;
(6) A charge imposed as a condition of property development; and
(7) Assessments and property -related fees imposed pursuant to
Proposition 218.
Cal. Const. art. XIII C section 1(e).
May 21, 2013 4 Prop 218 and 26 Analysis of
EDCO's Proposed Rate Increase
(3)
Under Proposition 26, the City bears the burden of proving that the fee is not a "tax," that the
amount charged is no more than necessary to cover reasonable costs, and that the allocation of
those costs among fee payers bears a fair or reasonable relationship to the fee payer's burdens
on, or benefits received from, the local government activity. Id.
Proposition 26 does not apply retroactively to existing local fees and charges. See Proposition 26
section 1 Findings and Declaration of Purpose; Strauss v. Horton, 46 Cal. 4th 364, 470 (2009);
Ballot Pamphlet, General Elec. (Nov. 2, 2010) Legislative Analyst's Analysis pp. 58-59. Thus,
absent an adjustment, a pre-existing fee would not be impacted by Proposition 26.
B. The Proposed Increase in Fees for Refuse Collection Services is not a Special Tax
Under Proposition 26 because the Proposed Increase is an Increase to Property -Related Fees.
The proposed increase in the fees for refuse collection services is based, in part, on an increase in
tipping fees. Pursuant to Section 23 of the Agreement, tipping fees are considered as "pass -
through" costs to the customers and are part of the refuse collection rate. Fees for refuse
collection services are property -related fees subject to Proposition 218. See Section I of this
Memorandum. According to Exception 7 to Proposition 26, property -related fees imposed
pursuant to Proposition 218 are excluded from the definition of a special tax under Proposition
26. Cal. Const. art. XIII C section 1(e)(7). Therefore, the proposed increase in the fees for refuse
collection services is not a special tax under Proposition 26.
CONCLUSION
The City has complied with the notice requirements of Proposition 218 with regard to the
proposed increase in fees for refuse collection services. The City will comply with the
Proposition 218 majority protest requirements with regard to that proposed increase. The
proposed increase in fees for refuse collection services is not a special tax under Proposition 26.
Elisa A. Cusato
Senior Assistant City Attorney
cc: City Manager
Public Works Director
May 21, 2013 5 Prop 218 and 26 Analysis of
EDCO's Proposed Rate Increase
City of National City
Notice of Public Hearing to Consider
Proposed Rate Increase for Refuse Services
Notice is hereby given that the City Council of the City of National City will hold a Public
Hearing at a regular meeting of the City Council of the City of National City on June 4, 2013, at
6:00 PM, in the Council Chamber of the Civic Center at 1234 National City Blvd., National City,
California, 91950 for the purpose of considering an increase in rates for refuse services,
including recycling and yard waste disposal.
At the public hearing, the City Council will consider written protests to the proposed increase in
rates received by the City Clerk, City of National City, at 1243 National City Blvd. prior to the
conclusion of the public hearing. Only one protest per parcel will be counted. The written
protest must include (1) an original signature; (2) identification of the parcel by parcel number or
address; and (3) a statement of protest against the increase in the rate. Written protest by e-mail
or fax will not be accepted. All members of the public are entitled to make comments and
objections at the public hearing whether or not they choose to submit a written protest. However,
verbal protests will not be accepted.
A rate adjustment is being proposed due to the increased costs of providing refuse services to
residential and commercial users. The amount of the increase to the residential rate was
calculated by adding $0.27 to the rate for refuse, based on an increase in the tipping fee of $2.17
per ton; adding $0.01 to the rate for yardwaste, based on an increase in the tipping fee of $1.29
per ton; adding $0.18 to the recycling rate, based on the reduced revenue on collected recycling
and the impacts of scavenging; and adding $0.28 based on the San Diego Consumer Price Index
(CPI) of 2.71%. The amount of the increase to the commercial rates was calculated by adding
$1.86 to the rate for refuse, $0.06 to the rate for yardwaste, $1.23 to the rate for recycling, and
$1.69 based on the CPI. The amounts of the increases to the commercial rates were calculated
based on the same increases to the tipping fees, impacts on recycling, and CPI index. An increase
to the City Franchise Fee and Enterprise Fund of $.09 for residential and $.64 for commercial
rates is also included in the overall adjustment. The increase of $0.83 cents per month for
residential users and $5.48 per month for commercial users would be effective for basic service
subscribers. The proposed increase in rates for refuse services would to take effect on July 1,
2013. Additional information pertaining to this matter may be obtained from the Public Works
Department, 2100 Hoover Avenue, National City, California, 91950.
Current Monthly Rate (eff 7/2/07) Proposed Monthly Rate (7/1/13)
Residential Service Rate
Base Rate
Senior Discount Rate
Silver Bag Rate
$16.64
$13.32
$ 2.28 per bag
$17.47
$13.99
$ 2.39 per bag
May21, 2013
6
Prop 218 and 26 Analysis of
EDCO's Proposed Rate Increase
AMENDMENT TO AGREEMENT FOR
COLLECTION OF RUBBISH AND TRASH
IN THE CITY OF NATIONAL CITY
BY AND BETWEEN THE CITY OF NATIONAL CITY AND
EDCO DISPOSAL CORPORATION FOR SERVICES RENDERED
This Amendment to the Agreement for Collection of Rubbish and Trash in the City of
National City by and between the City of National City and EDCO Disposal Corporation for
Services Rendered ("Agreement") is entered into on this 4th day of June, 2013, between the
City of National City ("City") and EDCO Disposal Corporation ("Contractor").
RECITALS
A. On September 25, 1990, the City and Contractor entered into the Agreement
providing for refuse collection services.
B. Pursuant to Section 4 of the Agreement, titled "Rates for Contractor's
Services", Contractor shall charge no more than the maximum rate set forth in the Rate
Schedule, which is set out in Exhibit "A", attached to and incorporated into the Agreement.
C. 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; on May 20, 2003, pursuant to Resolution No.
2003 - 64; June 21, 2005, pursuant to Resolution No. 2005-134; and on June 5, 2007,
pursuant to Resolution No. 2007-116.
D. Contractor has applied for an increase in rates pursuant to Section 23 of the
Agreement.
AGREEMENT
1. Exhibit "A" is deleted and replaced in its entirety with the Rate Schedules
titled "RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July
2013" and "COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment
— July 2013", attached to and incorporated into this Amendment.
2. The increased rates reflected in the attached Rate Schedules are effective July
1, 2013.
3. Except as provided in this Amendment, all of the provisions of the Agreement,
as previously amended, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment to the Agreement on
the date written above.
--- Signature Page to Follow ---
CITY OF NATIONAL CITY EDCO DISPOSAL CORPORATION
By:
Ron Morrison, Mayor
APPROVED AS TO FORM:
Claudia Gacitua Silva
City Attorney
By:
John Snyder
Vice President and General Manager
Amendment for Rate Increase 2 City of National City and
June 4, 2013 EDCO Disposal Corporation
RESOLUTION NO. 2013 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO
THE AGREEMENT BETWEEN THE CITY AND EDCO DISPOSAL CORPORATION TO
INCREASE THE MONTHLY RATES FOR REFUSE COLLECTION SERVICES
WHEREAS, on September 25, 1990, the City of National City and EDCO
Disposal Corporation ("EDCO") entered into The 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 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; on May 20, 2003, pursuant to
Resolution No. 2003 - 64; June 21, 2005, pursuant to Resolution No. 2005-134; and on June 5,
2007, pursuant to Resolution No. 2007-116; 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 $.83 per month to the
residential rate, and $5.48 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" to the Agreement, and
WHEREAS, the proposed Amendment to the Agreement will replace Exhibit "A"
with the Rate Schedules titled "RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate
Adjustment — July 2013" and "COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate
Adjustment — July 2013"; and
WHEREAS, the proposed increases in rates reflected in the Rate Schedules will
be effective July 1, 2013,and
WHEREAS, on June 4, 2013, 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
Resolution No. 2013 —
Page Two
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.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City does hereby authorize the Mayor to execute the Amendment to the Agreement
between the City of National City and EDCO Disposal Corporation to increase the rates charged
for refuse collection services by replacing Exhibit "A" with the Rate Schedules titled
"RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 2013" and
"COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 2013".
PASSED and ADOPTED this 4th day of June, 2013.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Claudia Gacitua Silva
City Attorney
RESOLUTION NO. 2013 — 79
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO
THE AGREEMENT BETWEEN THE CITY AND EDCO DISPOSAL CORPORATION TO
INCREASE THE MONTHLY RATES FOR REFUSE COLLECTION SERVICES
WHEREAS, on September 25, 1990, the City of National City and EDCO
Disposal Corporation ("EDCO") entered into The 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 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; on May 20, 2003, pursuant to
Resolution No. 2003 - 64; June 21, 2005, pursuant to Resolution No. 2005-134; and on June 5,
2007, pursuant to Resolution No. 2007-116; 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 $.83 per month to the
residential rate, and $5.48 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" to the Agreement, and
WHEREAS, the proposed Amendment to the Agreement will replace Exhibit "A"
with the Rate Schedules titled "RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate
Adjustment — July 2013" and "COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate
Adjustment — July 2013"; and
WHEREAS, the proposed increases in rates reflected in the Rate Schedules will
be effective July 1, 2013,and
WHEREAS, on June 4, 2013, 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
Resolution No. 2013 — 79
Page Two
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.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City does hereby authorize the Mayor to execute the Amendment to the Agreement
between the City of National City and EDCO Disposal Corporation to increase the rates charged
for refuse collection services by replacing Exhibit "A" with the Rate Schedules titled
"RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 2013" and
"COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 2013".
PASSED and ADOPTED this 4th day of June, 2
on Morrison, Mayor
ATTEST:
A
ch el R. Dalla CityC
Mi
Clerk
OVED AS TO FORM:
CI
City Attorn
Silva
Passed and adopted by the Council of the City of National City, California, on June 4,
2013 by the following vote, to -wit:
Ayes: Councilmembers Cano, Morrison, Natividad, Rios.
Nays: None.
Absent: None.
Abstain: Councilmember Sotelo-Solis.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
MICHAEL R. DALLA
City Clerk of the City of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2013-79 of the City of National City, California, passed and adopted
by the Council of said City on June 4, 2013.
City Clerk of the City of ationa I City, California
By:
Deputy