HomeMy WebLinkAboutEDCO Disposal Corporation - Rate Adjustment - Increase - 2017RESOLUTION NO. 2017 — 87
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
APPROVING AN AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF NATIONAL 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 an Agreement for Collection of Rubbish and Trash
between the City of National City and EDCO Disposal Corporation (the "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 June 5, 2007,
pursuant to Resolution No. 2007-116; June 4, 2013 pursuant to Resolution No. 2013-79; and
on June 2, 2015 pursuant to Resolution No. 2015-82; 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 $.51 per month to the
residential rate, and $3.28 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 1, 2017" and "COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate
Adjustment — July 1, 2017"; and
WHEREAS, the proposed increases in rates reflected in the Rate Schedules will
be effective July 1, 2017, and
WHEREAS, on June 6, 2017, 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. 2017 — 87
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 1, 2017" and
"COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 1, 2017".
Said Amendment is on file in the office of the City Clerk.
PASSED and ADOPTED this 6th day of June,
on Morrison, Mayor
ATTEST:
//
Michael R. Dalla, Ci' Clerk
APPROVED AS TO FORM:
An• P orris -Jones
Cit ttorney
Passed and adopted by the Council of the City of National City, California, on June 6,
2017 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
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trjetfe
City lerk of the City of'1Vational City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2017-87 of the City of National City, California, passed and adopted
by the Council of said City on June 6, 2017.
City Clerk of the City of National City, California
By:
Deputy
NATIONAL CITY RATE SCHEDULE
July 1, 2017
MONTHLY
RUBBISH AND GARBAGE RATE
1. RESIDENTIAL
Per month residential single family properties $18.60
For the second and for each additional
residential unit in multiple dwellings which
do not exceed four units
2. TRAILER PARKS AND MOTELS
One time per week, per unit, per month
3. APARTMENT HOUSES
One time per week, per unit, per month
4. SENIOR CITIZEN RESIDENTIAL
Per month
5. SILVER BAG SERVICE
Per month
6. COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS
Up to (2) 40 gallon containers
Or (1) 90 gallon automated cart
One time per week, per month
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
Up to (8) 40 gallon containers
Or (4) 90 gallon automated cart
One time per week, per month
$14.66
$12.87
$13.06
$14.90
$2.55
$22.22
$41.34
$53.14
$65.68
Up to (10) 40 gallon containers
Or (5) 90 gallon automated cart
One time per week, per month $85.79
Additional or unusual accumulation
of rubbish (per cubic yard) $22.22
EXHIBIT 'A'
NATIONAL CITY RATE SCHEDULE
July 1, 2017
BOX TYPE REFUSE SERVICE
COLLECTION NUMBER YARDS MONTHLY
FREQUENCY OF BINS PER MONTH RATE
1 1 13 $117.46
2 1 26 $198.26
3 1 39 $279.09
4 1 52 $362.28
5 1 65 $445.47
6 1 78 $528.67
7 1 91 $611.86
1 2 26 $200.65
2 2 52 $359.90
3 2 78 $519.15
4 2 104 $676.02
5 2 130 $832.91
6 2 156 $989.79
7 2 182 $1,146.66
1 3 39 $283.84
2 3 78 $516.78
3 3 117 $749.72
4 3 156 $980.29
5 3 195 $1,210.83
6 3 234 $1,441.40
7 3 273 $1,671.97
1 4 52 $367.02
2 4 104 $673.65
3 4 156 $980.29
4 4 208 $1,284.52
5 4 260 $1,588.78
6 4 312 $1,893 .01
7 4 364 $2,197.25
1 5 65 $450.23
2 5 130 $830.53
3 5 195 $1,210.83
4 5 260 $1,579.26
5 5 325 $1,947.68
6 5 390 $2,316 .10
7 5 455 $2,684.55
1 6 78 $533.41
2 6 156 $987.42
3 6 234 $1,441.40
4 6 312 $1,881 .13
5 6 390 $2,320 .87
6 6 468 $2,760.59
7 6 546 $3,200.34
EXHIBIT 'A'
CITY OF.NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: June 6, 2017
AGENDA ITEM NO. 25
EM TITLE:
A Resolution of the City Council of the City of National City approving an Amendment to the Agreement
between the City and EDCO Disposal Corporation to increase the monthly rates for refuse collection
services.
PREPARED BY: Kuna Muthusamy, Asst. Director
PHONE: (619) 336-4383
EXPLANATION:
See attached.
DEPARTMENT: ngineering/Public Works
APPROVED BY: .UNdI
FINANCIAL STATEMENT:
ACCOUNT NO.
APPROVED:
APPROVED:
Finance
MIS
No financial impact to City of National City; rate increases are borne by residents and businesses that use EDCO
Disposal Corporation
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt resolution approving 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:
N/A
ATTACHMENTS:
Explanation
z. Notice of Public Hearing to Consider Proposed
Rate Increases for Refuse Services
3. Residential Rates Adjustment
4. Commercial Rates Adjustment
5. Rate Comparison of Various Cities
6. National City Rate Schedule
7. PowerPoint Presentation
4?,Esouv1\00 O. ad001.% )
Explanation
A Public Hearing to consider a rate adjustment for refuse services including recycling
and yard waste disposal provided to National City residences and businesses by EDCO
Disposal Corporation
A rate adjustment is being proposed due to the increased costs of providing
refuse services to residential and commercial users.
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 2018 Rate Factors:
Total proposed adjustment is $0.51 (2.84%) per month to the standard residential
rate and $3.28 (2.87%) 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 increased from $41.73 to $42.51 on July 1, 2016, and from
$42.51 to $42.90 on July 1, 2017. The increase of $1.17 per ton equates to a
weighted average adjustment of $.16 to the standard residential rate and $1.09
to the standard commercial rate. Ratepayers benefitted as a result of EDCO not
requesting an increase in 2016.
Yardwaste
The yardwaste disposal rate will remain at $27.37 with the tonnage remaining
similar to last year. This will result in no change to the standard commercial rate
and no change to the residential rate.
Recycling
Changes in recycle values are factored into the rate with increases in values
causing rates to decrease, and decreases in values causing rates to increase.
Recyclable revenue decreased by $4,327 since the last review period due to
reduced revenue on collected recycling and the impacts of scavenging. This
equates to an increase adjustment of $.04 to the standard residential rate and
$.26 to the standard commercial rate.
-1-
Consumer Price Index (CPI)
The 2015 published one-year San Diego CPI index is 271.5 (2.4%). This equates
to a weighted average adjustment of $.25 to the standard residential rate and
$1.55 to the standard commercial rate. EDCO is not requesting the 2016 CPI at
this time.
EDCO will continue to contribute approximately $150,000 to the City's Enterprise
Fund through collections from rate payers. The fund is 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.
Summary of rate changes:
The total proposed increase of $0.51 (2.84%) per month to the standard
residential rate was calculated by adding $0.16 to the rate for refuse, based on a
July 1, 2017 increase in the tipping fee of $1.17 per ton; $0.04 to the recycling
rate, based on the reduced revenue on collected recycling and the impacts of
scavenging; $0. 25 based on the San Diego Consumer Price Index (CPI) for
2015 of 2.45%; and $0.07 due to an increase to the City Franchise Fee and
Enterprise Fund.
The total proposed increase of $3.28 (2.87%) per month to the standard
commercial rate was calculated by adding $1.09 to the rate for refuse, $0.00 to
the rate for yard waste, $0.26 to the rate for recycling; $1.55 based on the CPI;
and $0.38 due to an increase to the City Franchise Fee and Enterprise Fund.
The total proposed rate increases summarized above are for basic service
subscribers, and would take effect on July 1, 2017, the beginning of FY 2018.
Service
Current Monthly
Rate
Rate Change
Proposed
Monthly Rate
Single Family Rate
$18.09
$0.51
$18.60
Senior Rate
$14.49
$0.41
$14.90
Silver Bag (ea)
$ 2.48
$0.07
$ 2.55
National City currently pays the lowest residential service base rate in the
County. If the total proposed base rate increase is approved, National City would
still have the lowest residential service base rate in the County.
-2-
EDCO is proposing to provide the following additional or improved services:
1. Green Waste collection
2. Recycling Locking Cart Program
3. Free Spring and Fall Cleanups
4. Free Quarterly Bulky Item Collection
5. Free Shredding & E-Waste Event with Additional Event Added to EI-Toyon
Park Cleanup Event
6. Free Alley Sweeps
7. Free Cleanup Events at City Parks
8. City Park Recycling & Trash Pick Up
9. Senior Discount
10. Silver Bag Program
11. School & Community Recycling Presentations
12. Together We Can - Offering up to 15 public containers to encourage
business participation
-3-
CALIFORNIA *K+-
NATIoNAL
�-- I�CORPORATI%D --�
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 Tuesday, June 6, 2017, at 6:00 PM, in the Council Chamber of the Civic Center,
1243 National City Blvd., National City, CA 91950 for the purpose of considering
an increase in residential and commercial rates for refuse services and waste
disposal.
At the public hearing, the City Council will consider written protests to the proposed
increase in rates received by the City Clerk 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.
The rate adjustment is being proposed due to the increased costs of providing refuse
services to residential and commercial users. The proposed increases of $0.51 per
month for residential users and $3.28 per month for commercial users would be
effective for basic service subscribers and would take effect on July 1, 2017.
Additional date and information pertaining to this matter may be obtained from the
Engineering Department at 1243 National City Blvd., National City, CA 91950 or
by calling 619-336-4380.
Michael R. Dalla, City Clerk
Engineering & Public Works Department
1243 National City Boulevard, National City, CA 91950-4301
619/336-4380 Fax 619/336-4397 www.nationalcityca.gov
-4-
Residential Rates Adjustment
National City
Rate Adjustment - July 1, 2017
Gross Rate Revenue & Franchise Fees
Annual Amount
Gross Residential Rate Revenue - 2016
$
1,699,505
Less Residential Franchise Fees @ 9 %
($152,955)
Less Enterprise Fund (res portion)
($51,671)
Residential Rate Revenue Net of Franchise and Enterprise Fund
$
1,494,878
Revenue Components (net of Franchise F
Revenue Components (net of Franchise Fees)
Annual Amount
Percentage of Rate Revenue Net of
Franchise Fees
Residential Rate Revenue Net of Franchise Fees
$1,494,878
100.00%
Less: Actual Residential refuse Disposal Expense
-$543,920
-36.39%
Less: Actual Yard Waste Disposal (res portion)
-$15,348
-1.03%
Add: Recycling Revenue (residential portion)
$38,350
2.26%
Residential Service Revenue
$973,959
64.84%
Percentage change in
Adjustment Factor
Old
New
Index Change
Rate Component
Percent Change
RSWA Disposal Tipping Fee per Ton
$
41.73
$
42.90
$
1.17
2.80%
YW Tipping Fee per Ton
$
27.37
$
27.37
$
0.00
0.00%
Recycling Revenue Increase / (Decrease)
$41,926
$37,599
$
(4,327)
-10.32%
CPI- San Diego Index CUUSA424SA0
265.0
271.5
6.49
2.45%
Weighted ercen
Revenue Components
Component Weight
,
Rate Component Percent Change
Weighted Rate
Adjustment
Refuse Disposal
36.39%
2.80%
1.02%
Yard Waste Disposal
1.03%
0.00%
0.00%
Recycling Revenue (Increase)/Decrease
-2.26%
-10.32%
0.23%
Service
64.84%
2.45%
1.59%
Totals
100.00%
2.84%
Apply weighted percen
Service
Current Monthly Rate
Weighted Rate
Adjustment
Rate Change
Adjusted Monthly
Rate
Residential Single Family Rate
$18.09
2.84%
0.51
18.60
Senior Rate
$14.49
2.84%
0.41
14.90
Silver Bag
$2.48
2.84%
0.07
2.55
Multi family recycling per Unit
$1.03
2.84%
0.03 '
1.06
Updated Allocation
of current rate
Change
New
Rate Allocation
Service
$10.32
$0.25
$10.57
Landfill
$5.79
$0.16
$5.95
Enterprise Fund
$0.55
$0.02
$0.57
Curbside Recycling
($0.36)
$0.04
($0.32)
Yard Waste collection
$0.16
$0.00
$0.16
Franchise Fee (9%)
$1.63
$0.05
$1.67
Total Rate
$18.09
$0.51
$18.60
-5-
Commercial Rates Adjustment
National City
Rate Adjustment - July 1, 2017
Gross Rate Revenue & Franchise Fees
Annual Amount
Gross Commercial Rate Revenue - 2016
$
3,583,064
Less Gross Franchise Fees @ 9 %
($322,476)
Less Enterprise Fund (comm portion)
($103,243)
Commercial Rate Revenue Net of Franchise Fee and Enterprise Fund
$
3,157,345
Revenue Components (net of Franchise Fees)
Annual Amount
Percentage of Rate Revenue Net of
Franchise Fees
Commercial Rate Revenue Net of Franchise Fees
$3,157,345
100.00%
Less: Actual Commercial Refuse Disposal Expense
-$1,223,212
-38.74%
Less: Actual Yard Waste Disposal(comm portion)
-$31,162
-0.99%
Add, Recycling Revenue (comm portion)
$77,861
2.47%
Commercial Service Revenue
$1,980,833
62.74%
Percentage change in adjustment factors
Adjustment Factor
Old
New
Index Change
Rate Component
Percent Change
RSWA Disposal Tipping Fee per Ton
$
41.73
$
42.90
$
1.17
2.80%
YW Tipping Fee per Ton
$
27.37
$
27.37
$
0.00
0.00%
Recycling Revenue Increase / (Decrease)
$
85,123
$
76,338
$
(8,785)
-10.32%
CPI- San Diego Index CUUSA424SA0
265.0
271.5
2.45%
2.45%
Weighted percentage change in adjustment factors
Components of Actual Revenue
Component Weight
Rate Component Percent Change
Weighted Rate
Adjustment
Refuse Disposal
38.74%
2.80%
1.08%
Yard Waste Disposal
0.99%
0.00%
0.00%
Recycling Revenue (Increase)/Decrease
-2.47%
-10.32%
0.25%
Service
62.74%
2.45%
1.54%
Totals
100.00%
2.87%
AppIv weighted percentage change to Commercial Rates
Service
Current Monthly Rate
Weighted Rate
Adjustment
Rate Change
Adjusted Monthly
Rate
3 Cu Yard x 1 week
$114.18
2.87%
$3.28
$117.46
Updated Allocation
of current rate
Change
Proposed
New Allocation
Service
$63.12
$1.55
$64.67
Landfill
$38.98
$1.09
$40.07
Enterprise Fund
$3.29
$0.09
$3.38
Curbside Recycling
($2.48)
$0.26
($2.22)
Yard Waste collection
$0.99
$0.00
$0.99
Franchise Fee (9%)
$10.28
$0.29
$10.57
Total Rate
$114.18
$3.28
$117.46
-6-
IMPLEMENTATION OF AUTOMATED GREEN WASTE COLLECTION
PROGRAM BENEFITS
• New Compressed Natural Gas
(CNG) powered collection fleet
• Improved aesthetics on service
day
• Enhanced storm water
protection
• Eliminates need to purcha
cans
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PROGRAM PARAMETERS
■ Each single family residence will
receive one ninety-five gallon cart at
no additional charge
To encourage recycling, up to a total
of three carts are available at no
additional charge
■ Green waste collection remains on
the same day as trash & rec ling
PUBLIC EDUCATION PLAN
• Direct Mail Informational Piece
• Web Site Information
• Point -of -Delivery Information
• Follow -Up Reminder Postcard
• Ongoing - Environmental
Times
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WHEN DO WE START?
• Carts delivered citywide starting
December 2017
• Automated collection starts the week
after carts are received
• Old cans collected free of charge for
two weeks after initial automated
collection
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RECYCLING LOCKING CART PILOT PROGRAM
Summary of Pilot Study:
■ 15t study 75 households in 7/2015.
■ 2nd Study 12/2016.
■ 3rd Study 1/2017.
■ Waste Composition Studies revealed no
significant increase in recycling, 640Ibs. vs
700Ibs. in post pilot.
■ High Value CRV commodities decreased:
■ PETE Plastic 2.05% to 1%
■ Aluminum 0.19% to 0.11%
■ Based on 3 studies performed there is no
significant benefit.
■ EDCO Recommendations:
■ Work with Code Enforcement on Entrepreneurs
that have routes.
■ Implement Green Waste Automation to increase
diversion.
■ Recycling Education Website communications.
■ EDCO Environmental Times Newsletter Focusing
on Recycling Education.
■ Senior Discount
■ Silver Bag Program
■ School & Community Recycling
Presentations
■ Active Community Member
ENHANCED SERVICES PROVIDED BY EDCO
- - -•
■ Free Quarterly Bulky Item
Collection
■ Free Shredding & E-Waste Event
with Additional Event Added to El
Toyan Park Cleanup Event
■ Free Cleanup Events at City Parks
■ City Park Recycling & Trash Pick
Up
■ Free All -y Sweeps
TOGETHER WE CAN!
TOGETHER
EDC
O will partner with National City
offering up to 15 public containers to
encourage business participation and
ownership in building vibrant
neighborhoods that are friendly, attractive,
safe and energized!
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QUESTIONS & ANSWERS
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