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HomeMy WebLinkAboutEDCO Disposal Corporation - Rate Adjustment - Increase - 2019RESOLUTION NO. 2019 — 76 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING A RESOLUTION FOLLOWING A PUBLIC HEARING PURSUANT TO PROPOSITION 218 TO CONSIDER A RATE ADJUSTMENT FOR REFUSE SERVICES INCLUDING RECYCLING AND YARD WASTE DISPOSAL PROVIDED TO NATIONAL CITY RESIDENCES AND BUSINESSES BY EDCO DISPOSAL CORPORATION AND AMENDING THE AGREEMENT BETWEEN THE CITY AND EDCO DISPOSAL CORPORATION TO INCREASE THE MONTHLY RATES FOR REFUSE COLLECTION SERVICES. WHEREAS, the Proposition 218 process requires that written notification be given to all affected property owners, and that those property owners are given a 45- day period in which to submit written protests if they oppose the proposed rate adjustments; and WHEREAS, pursuant to Proposition 218, on April 4, 2019, a Public Notice was mailed to all property owners giving notice of the date, time and place wherein a Public Hearing would be held on the proposed rate adjustment; and WHEREAS, on May 21, 2019, the City Council held a Public Hearing on the proposed increases in rates; and WHEREAS, during the public hearing, the City' Council heard and considered all oral objections and protests against the proposed increases in rates; and WHEREAS, prior to the conclusion of the Public Hearing, the City Clerk received all written protests to the proposed increases in rates; and WHEREAS, the City Clerk counted the written protests; and WHEREAS, written protests against the proposed increases in rates were not presented by a majority of the owners or the tenants; and WHEREAS, having no majority protest, on May 21, 2019,the City Council considered the rate adjustment as it relates to amending the Agreement; and WHEREAS, on September 25, 1990, the City of National City and EDCO Disposal Corporation ("EDCO") entered into an Agreement for Collection of Rubbish and Trash between the City of National City and EDCO Disposal Corporation ("Agreement") providing for refuse collection services; and Resolution No. 2019 — 76 Page Two WHEREAS, the Agreement was amended on June 22, 1993, pursuant to Resolution No. 93-86; on November 9, 1993, pursuant to Resolution No. 93-176; on June 21, 1994, pursuant to Resolution No. 94-88; on September 16, 1997, pursuant to Resolution No. 97-119; on June 12, 2001, pursuant to Resolution No. 2001-88; and on May 20, 2003, pursuant to Resolution No. 2003-64; June 21, 2005, pursuant to Resolution No. 2005-134 June 5, 2007, pursuant to Resolution No. 2007-116; June 4, 2013 pursuant to Resolution No. 2013-79; and on June 2, 2015 pursuant to Resolution No. 2015-82 and June 6, 2017 pursuant to Resolution No. 2017-87 ; and WHEREAS, pursuant to Section 23 of the Agreement, titled "Applications for Rate Change", EDCO may apply annually for changes in the rates charged and WHEREAS, EDCO has applied for an increase of $1.42 per month to the residential rate, and $8.75 per month to the standard commercial rate and WHEREAS, the proposed increases are based on an increase in the tipping fees at the landfill, the decrease in revenue from recyclables sold, and the San Diego Consumer Price Index; and WHEREAS, pursuant to Section 4 of the Agreement titled "Rates for Contractor's Services", EDCO shall charge no more than the maximum rate set forth in the Rate Schedule, which is set out in Exhibit "A"; and WHEREAS, the proposed Amendment to this Agreement is reflected in Exhibit "A"; and WHEREAS, the proposed increases in rates reflected in the Rate Schedules will be effective July 1, 2019. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City does hereby finds, orders and declares that there was no majority protest of the proposed rate adjustment. BE IT FURTHER RESOLVED that the City Council does hereby authorize EDCO Disposal Corporation to increase the rates charged for refuse collection services as set out in Exhibit "A" attached hereto and by this reference is incorporated herein and though set forth in full with the Rate Schedules titled "RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 1, 2019" and "COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 1, 2019". Said Amendment is on file in the office of the City Clerk. // Resolution No. 2019 — 76 Page Three BE IT FURTHER RESOLVED that the City Council authorize the Mayor to execute the Amendment to the Agreement between the City of National City and EDCO Disposal Corporation. PASSED and ADOPTED this 21st day of A ejandr ATTEST: rBr Michael R°Della, City G`lerk APPROVED AS TO FOR Solis, Mayor Passed and adopted by the Council of the City of National City, California, on May 21, 2019 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Quintero, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS 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. 2019-76 of the City of National City, California, passed and adopted by the Council of said City on May 21, 2019. City Clerk of the City of National City, California By: NATIONAL CITY RATE SCHEDULE July 1, 2019 1. RESIDENTIAL Per month residential single family properties Per month second thru fourth unit Per month commingled organics per home/unit 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 (1) 90 gallon automated cart One time per week, per month (2) 90 gallon automated cart One time per week, per month (3) 90 gallon automated cart One time per week, per month (4) 90 gallon automated cart One time per week, per month (5) 90 gallon automated cart One time per week, per month Additional or unusual accumulation of rubbish (per cubic yard) EXHIBIT A New Adopted Rates $1.42 $1.12 $2.50 $0.98 $1.00 $1.14 $0.20 $1.66 $3.08 $3.96 $4.89 $6,39 $1.66 COLLECTION NUMBER YARDS FREQUENCY OF BINS PER MONTH EXHIBIT A New Adopted Rates REFUSE BIN SERVICE 1 1 13 $8,75 2 1 26 $14.77 3 1 39 $20.79 4 1 52 $26.99 5 1 65 $33.19 6 1 78 $39.39 7 1 91 $45.58 1 1 1 2 26 $14.95 2 2 52 $26.81 3 2 78 $38.68 4 2 104 $50.36 5 2 130 $62.05 6 2 156 $73.74 7 2 182 $85.43 1 3 39 $21.15 2 3 78 $38.50 3 3 117 $55.85 4 3 156 $73.03 5 3 195 $90.21 6 3 234 $107.38 7 3 273 $124.56 1 4 52 $27.34 2 4 104 $50.19 3 4 156 $73.03 4 4 208 $95.70 5 4 260 $118.36 6 4 312 $141.03 7 4 364 $163.70 1 5 65 $33.54 2 5 130 $61.87 3 5 195 $90.21 4 5 260 $117.65 5 5 325 $145.10 6 5 390 $172.55 7 5 455 $200.00 1 6 78 $39.74 2 6 156 $73.56 3 6 234 $107.38 4 6 - 312 $140.14 5 6 390 $172.90 6 6 468 $205.66 7 6 546 $238.43 COMMINGLED ORGANIC SERVICE 1 1 65 Gallon cart $85,05 1 1 96 Gallon cart $102.09 1 1 2 cubic yard bin $170.25 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: May 21, 2019 AGENDA ITEM NO. 25 EM TITLE: A Public Hearing pursuant to Proposition 218 to consider a rate adjustment for refuse services including recycling and yard waste disposal provided to National City residences and businesses by EDCO Disposal Corporation and amending the agreement between the City and EDCO Disposal Corporation to increase the monthly rates for refuse collection services. PREPARED BY: Carla Hutchinson, Assistant Engineer - Civil PHONE: 619-336-4388 EXPLANATION: See attached. DEPARTMENT: Engi APPROVED BY: ublic Works IANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Hold public hearing to consider rate adjustment for refuse services. BOARD / COMMISSION RECOMMENDATION: N/A "'TACHMENTS: 1. Explanation 2. 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 Re se/uficY, 110. 10/9• �(o 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. For the last several years, EDCO has adjusted every two (2) years to allow rate elements to stabilize, which also has the effect of producing a savings to National City residents. The last rate adjustment was made on June 6, 2017. 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. In September 2016, Governor Brown signed SB 1383, establishing methane emissions reduction targets in a statewide effort to reduce emissions from short- lived climate pollutants in various sectors of California's economy. Methane from decomposing organic waste in landfills is a significant source of greenhouse gas (GHG) emissions, therefore SB 1383 requires CalRecycle to develop regulations to reduce the disposal of organic waste 50% below 2014 levels by 2020, and 75% by 2025. Additionally, CalRecycle must implement requirements to recover 20% of edible food for human consumption that is currently landfilled by 2025. While the final rulemaking for SB 1383 is still underway, the following requirements for cities and waste haulers are anticipated to be in place and operational by January 1, 2022: • Organic Waste Collection Services o Jurisdictions and haulers must provide residential and commercial organic waste collection services. o Jurisdictions must conduct minimum levels of education, outreach, and contamination monitoring. o Waste generators must subscribe to collection services for organic waste not reduced or managed on -site. • Edible Food Recovery Programs and Services o Jurisdictions must implement and oversee food recovery programs. o Commercial edible food generators must establish documented arrangements with food recovery services. • Procurement of Recovered Organic Waste Products o Jurisdictions must procure minimum levels of compost, renewable natural gas, or both. o Jurisdictions must meet minimum recycled content and recyclability standards for paper products. • Reporting by Regulated Entities o Jurisdictions, haulers, and facilities must report annually or quarterly on compliance with the regulations. • Organic Waste Recovery and Processing Standards for Facilities o Facilities must achieve recovery rates for organic waste that is collected with non -organic waste. o Facilities must reduce contamination in organic waste prior to sending for additional processing or recovery. EDCO's proposed rate adjustments for Fiscal Year 2019-2021 include changes to • the rates for the current refuse collection and recycling activities as well as a future increase to add the new organics recycling requirements mandated by the State of California. Supporting data with respect to both components was submitted with the rate adjustment request. FY 2020 Rate Factors: Total proposed adjustment is $1.42 (7.65%) per month to the standard residential rate and $8.75 (7.45%) 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 $42.90 to $44.39 on July 1, 2018, the RSWA rate will remain $44.39 on July 1, 2019. The increase of $1.49 per ton equates to a weighted average adjustment of $.18 to the standard residential rate and $1.28 to the standard commercial rate. Ratepayers benefitted as a result of EDCO not requesting an increase in 2018. Yardwaste The yardwaste disposal rate will increase from $27.37 to $27.72 with the tonnage remaining similar to last year. This will result in an increase of $.02 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 approximately $35,000 since the last review period due to reduced revenue on collected recycling and the impacts of scavenging. This equates to an increase adjustment of $.02 to the standard commercial rate. Consumer Price Index (CPI) The 2018 published one-year San Diego CPI index .is 295.0, this is an 8.65% increase from the prior index of 271.5. This equates to a weighted average adjustment of $.96 to the standard residential rate and $5.77 to the standard commercial rate. Ratepayers benefitted as a result of EDCO not requesting an increase in 2018. EDCO will contribute approximately $175,000 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 $1.42 (7.65%) per month to the standard residential rate was calculated by adding $0.18 to the rate for refuse, $0.96 based on the San Diego Consumer Price Index (CPI), and $0.28 due to an increase to the City Franchise Fee and Enterprise Fund. The total proposed increase of $8.75 (7.45%) per month to the standard commercial rate was calculated by adding $1.28 to the rate for refuse, $0.02 to the rate for yard waste, $0.02 to the rate for recycling; $5.77 based on the CPI; and $1.65 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, 2019, the beginning of FY 2020. Service Current Monthly Rate Rate Change Proposed Monthly Rate Single Family Rate $18.60 $1.42 $20.02 Senior Rate $14.90 $1.14 $16.04 Silver Bag (ea) $ 2.55 $0.20 $ 2.75 The proposed rates are flat over the 2-year period, effective July 2019 to July 2021. 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. Pursuant to Proposition 218, a Public Notice was mailed to all property owners of record on April 4, 2019 (see attached). The Proposition 218 process requires that written notification be given to all affected property owners, and that those property owners be given a 45-day period in which to submit written protests if they oppose the proposed rate adjustments. 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 NOTICE OF PUBLIC HEARING to Consider Proposed Rate Increase for Refuse Services Tuesday, May 21, 2019, 6:00 p.m. Proposition 218 Pursuant to Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act, the City of National City (the "City) hereby gives notice that a public hearing will be held on Tuesday, May 21, 2019, at 6:00 PM, or as soon as possible thereafter as the matter can be heard, at the regularly scheduled City Council meeting. The public hearing will be held in the Council Chamber of the Civic Center, located at 1243 National City Boulevard, National City, California, 91950. Reason for Proposed Rate Increase A rate adjustment is being proposed due to the increased costs of providing refuse services to residential and commercial users. If approved, basic service residential rates will increase by $1.42 per month, with a 20% discount for qualifying senior citizens, and Senior Silver Bag Service will increase $0.20 per bag. The $1.42 ncrease is calculated by adding $0.18 to the rate for refuse based on a $1.49 increase in the per ton tipping fee; adding $0.96 based on the San Diego Consumer Price Index (CPI); and $0.28 based on the City Franchise Fee and Enterprise Fund. If approved, basic service commercial rates will increase $8.75 per month. The $8.75 is calculated by adding $1.28 to the rate for refuse; $0.04 for yardwaste and recycling; $5.77 based on the CPI; and $1.65 based on City Franchise Fee and Enterprise Fund. If approved, these rates will become effective on July 1, 2019. In order to comply with State regulations regarding Organics (AB1826) and Short Lived Climate Pollutant reduction (SB1383), an adjustment of $2.50 per month per residential user is proposed. This adjustment is due to the additional transportation and processing costs incurred to implement commingled residential and commercial organic collection service. This adjustment would not be implemented until 2021. Commercial Organics will be provided by subscription beginning in 2021. Please visit the following links for additional information on AB 1826 and SB 1383: http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill id=201520160AB1826 and http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill id=201520160SB1383. Residential Service Base Rate Senior Discount Rate silver Bag Rate ommingled Organics Current Monthly Rate (Effective 7/1/17) $18.60 $14.90 $2.55 per bag $0.00 Proposed Monthly Rate (Effective 7/1/19) $20.02 $16.04 $2.75 per bag $2.50 (Effective 2021) Engineering & Public Works Department 1243 National City Boulevard, National City, CA 91950-4301 619/336-4380 Fax 619/336-4397 www.nationalcityca.gov -5- Protest Procedure The property owner of record may file a written protest to the proposed rate adjustments. Property owners need not attend the public hearing in order to file a protest. Protests may be mailed to: City Clerk, 1243 National City Boulevard, National City, California 9.1950. If protesting by mail, please write on the front of the envelope that the enclosed letter of protest is for the proposed refuse and waste disposal adjustments. All protests must be received before the close of the public comment portion of the public hearing on May 21, 2019. Any protests received after that date and time, even if postmarked on or prior to that date, will not be counted. Any protest received via e-mail, fax, or other electronic means shall also not be counted. The signature on the protest must be that of the property owner of record and be an original signature. Protests with copies of signatures will not be counted. Verbal comments do not qualify as a protest, unless accompanied by a written protest. While customers who live on property owned by others may attend the public hearing, the City will only count written protests filed by property owners. Only one valid protest per parcel will be counted. In order to be counted, each protest must contain the following: 1. State that the property owner of record does not agree with the proposed rate adjustments. 2. Identify the location of the parcel by street address, assessor's parcel number (APN) listed on the address label of your envelope, or City account number. 3. Provide the printed name and original signature of the property ownersubmitting the protest. " 4. If you wish to protest and you own multiple properties, you may file one valid protest for each parcel that you own. Only one protest will be counted per parcel. For example, if you own five parcels and you wish to file protests for each of your properties, you must file five separate protests, 5. If you wish to protest and your parcel is owned by more than one person, or by a corporation or other legal entity, you may only file one protest for that parcel. Proper documentation must be provided showing that the person who signs the protest has the authority to sign on behalf of the other owners, corporation, or legal entity. 6. If the name of the property owner was not shown on San Diego County's last equalized assessment roll as the owner of record, you must provide the City with a certified copy of a recorded deed. Individuals with disabilities, who require reasonable accommodation under the Americans with Disabilities Act in order to participate in the public hearing, should contact the City Clerk's Office as far in advance of the public hearing as possible. If you have any questions about this process, or this notice in general, please contact the Engineering / Public Works Department at 1243 National City Boulevard, National City, CA 91950 or by calling (619)-336-4580. Engineering & Public Works Department 1243 National City Boulevard, National City, CA 91950-4301 619/336-4380 Fax 619/336-4397 www.nationalcityca.gov -6- Residential Rates Adjustment National City Rate Adjustment - July 1, 2019 Gross Rate Revenue & Franchise Fees Annual Amount Gross Residential Rate Revenue - 2018 $ 1,773,021 Less Residential Franchise Fees @ 9 % ($159,572) Less Enterprise Fund (res portion) ($54,335) Residential Rate Revenue Net of Franchise and Enterprise Fund $ 1,559,115 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 $1,559,115 100.00% Less- Actual Residential refuse Disposal Expense -$501,207 -32.15% Less: Actual Yard Waste Disposal (res portion) -$22,925 - -1.47% Add: Recycling Revenue (residential portion) $25,965 1.46% Residential Service Revenue $1.060,948 67.85% Percentage change in adjustment factors Adjustment Factor Old New Index Change Rate Component Percent Change RSWA Disposal Tipping Fee per Ton $ 42.90 $ 44.39 $ 1.49 3.47% YW Tipping Fee per Ton $ 27.37 $ 27.72 $ 0.35 1.27% Recycling Revenue Increase / (Decrease) $38,350 $37,850 $ (499) -1.30% CPI- San Diego Index CUURS49ESA0 271.5 295.0 23.49 8.65% Weighted percentage change In adjustment factors Revenue Components Component Weight Rate Component Percent Change Weighted Rate Adjustment Refuse Disposal 32.15% 3.47% 1.12% Yard Waste Disposal 1.47% 1.27% 0.02% Recycling Revenue (Increase)/Decrease -1.46% 1.30% 0.02% Service 67.85% 8.65% 5.87% Totals 100.00% 7.03% Apply welghted percentage change to Residential Rates Service Current Monthly Rate Weighted Rate Adjustment Rate Change Adjusted Monthly Rate Residential Single Family Rate $18.60 7.03% 1.31 19.91 Senior Rate $14.90 7.03% 1.05 15.95 Silver Bag $2.55 7.03% 0.18 2.73 Multi family recycling per Unit $1.06 7.03% 0.07 1.13 Updated Allocation of current rate Change New Rate Allocation Service $11.10 $0.96 $12.06 Landfill $5.26 $0.18 $5.44 Enterprise Fund $0.57 $0.04 $0.61 Curbside Recycling ($0.24) $0.00 ($0.24) Ya'd_Waste poRestion $0 24 $0 00 $0 24- Franchise Fee (9%)- ---$1.67- ----- -- -- --- --- ------$0.12 - - - - - - $1.79- Total Rate $18.60 $1.31 $19.91 -7- Commercial Rates Adjustment National City Rate Adjustment - July 1, 2019 Gross Rate Revenue & Franchise Fees Annual Amount Gross Commercial Rate Revenue • 2018 $ 3,840,178 Less Gross Franchise Fees @ 9 % ($345,616) Less Enterprise Fund (comm portion) ($110,504) Commercial Rate Revenue Net of Franchise Fee and Enterprise Fund $ 3,384,058 Revenue Components (net of Franchise Fees) Annual Amount Percentage of Rate Revenue Net of Franchise Fees Commercial Rate Revenue Net of Franchise Fees $3,384,058 100.00% Less: Actual Commercial Refuse Disposal Expense -$1,208,525 -35.71% Less: Actual Yard Waste Disposal(comm portion) -$46,544 -1.38% Add: Recycling Revenue (comm portion) $52,717 1.56% Commercial Service Revenue $2,181,705 64.47% Percentage change i Adjustment Factor Old New Index Change Rate Component Percent Change RSWA Disposal Tipping Fee per Ton $ 42.90 $ 44.39 $ 1.49 3.47% YW Tipping Fee per Ton $ 27.37 $ 27.72 $ 0.35 1.27% Recycling Revenue Increase / (Decrease) $ 77,861 $ 76,847 $ (1,014) -1.30% CPI- San Diego Index CUURS49ESA0 271.5 295.0 8.65% 8.65% Weighted percentage chanoe Components of Actual Revenue Component Weight Rate Component Percent Change Weighted Rate Adjustment Refuse Disposal 35.71% 3.47% 1.24% Yard Waste Disposal 1.38% 1.27% 0.02% Recycling Revenue (Increase)/Decrease -1.56% -1.30% 0.02% Service 64.47% 8.65% 5.58% Totals 100.00% 6.86% Apply weighted percentage chanoe to Commercia Service Current Monthly Rate Weighted Rate Adjustment Rate Change Adjusted Monthly Rate 3 Cu Yard x 1 week $117.46 6.86% $8.06 $125.52 Updated Allocation of current rate Change Proposed New Allocation Service $66.73 $5.77 $72.51 Landfill $36.97 . $1.28 $38.25 Enterprise Fund $3.38 $0.23 $3.61 Curbside Recycling ($1.61) $0.02 ($1.59) Yard Waste collection $1.42 $0.02 $1.44 Franchise Fee (9%) $10.57 $0.73 $11.30 Total Rate $117.46 $8.06 $125.52 -8- Residential Rates - attachment 5 National City - current $18.60 Effective 7/1/17 National City - Proposed $20.02 Proposed 7/1/19 Escondido Coronado Encinitas Santee Oceanside La Mesa Carlsbad Vista Poway Del Mar Lemon Grove San Marcos El Cajon Solana Beach Chula Vista Imperial Beach $20.31 Effective 1/1/19 $21.45 Proposed 7/1/19 $21.50 Proposed 7/1/19 $21.58 Proposed 7/1/19 $21,73 Proposed 7/1/19 $21.77 Proposed 7/1/19 $22.03 Proposed 7/1/19 $22.57 Proposed 7/1/19 $22.79 Proposed 7/1/19 $23.35 Proposed 7/1/19 $23.37 Proposed 7/1/19 $23.61 Proposed 7/1/19 $24.60 Proposed 7/1/19 $24.97 Proposed 7/1/19 $25.14 Effective 9/1/18 $31.29 Proposed 7/1/19 -9- City of National City Proposed Rates for Anaerobic Digestion of Greenwaste & Foodwaste - July 1, 2019 ResidentialCommingled Organics Residential Single Family $ 2.50 per month Commercial Commingled Organics Service Frequency Extra, 1st Container 1 2 3 Pickup Cart (65 gal) $ 89.53 $ 179.05 $ 268.58 $ 35.81 Cart (95 gal) $ 102.09 $ 204.17 $ 306.26 $ 40.83 2 cy Bin $ 170.25 $ 340.50 $ 510.75 $ 68.10 Each Additional Container 1 2 3 Cart (65 gal) - $ 85.05 $ 170.10 $ 255.15 Cart (95 gal) $ 96.98 $ 193.96 $ 290.94 2 cy Bin $ 161.74 $ 323.47 $ 485.21 -10- NATIONAL CITY RATE SCHEDULE • July 1, 2019 CURRENT PROPOSED PROPOSED MONTHLY MONTHLY CHANGE RATE RATE 1. RESIDENTIAL Per month residential single family properties $18.60 $20.02 $1.42 Per month second thru fourth unit $14.66 $15.78 $1.12 Per month commingled organics per home/unit $0.00 $2.50 $2.50 2. TRAILER PARKS AND MOTELS One time per week, per unit, per month $12.87 $13.85 $0.98 3. APARTMENT HOUSES One time per week, per unit, per month $13.06 $14.06 $1.00 4. SENIOR CITIZEN RESIDENTIAL Per month 5. SILVER BAG SERVICE Per month 6. COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS (1) 90 gallon automated cart One time per week, per month (2) 90 gallon automated cart One time per week, per month (3) 90 gallon automated cart One time per week, per month (4) 90 gallon automated cart One time per week, per month (5) 90 gallon automated cart One time per week, per month Additional or unusual accumulation of rubbish (per cubic yard) $14.90 $2.55 $16.04 $1.14 $2.75 $0.20 $22.22 $23.88 $1.66 $41.34 $44.42 $3.08 $53.14 $57.10 $3.96 $65.68 $70.57 $4.89 $85.79 $92.18. $6.39 $22.22 $23.88 $1.66 -11- CURRENT PROPOSED PROPOSED COLLECTION NUMBER YARDS MONTHLY MONTHLY CHANGE FREQUENCY OF BINS PER MONTH RATE RATE REFUSE BIN SERVICE 1 1 13 $117.46 $126.21 $8.75 2 1 26 $198.26 $213.03 $14.77 3 1 39 $279.09 $299.88 $20.79 4 1 52 $362.28 $389.27 $26.99 5 1 65 $445.47 $478.66 $33.19 6 1 78 $528.67 $568.06 $39.39 7 1 91 $611.86 $657.44 $45.58. 1 2 26 $200.65 $215.60 $14.95 2 2 52 $359.90 $386.71 $26.81 3 2 78 $519.15 $557.83 $38.68 4 2 104 $676.02 $726.38 $50.36 5 2 130 $832.91 $894.96 $62.05 6 2 156 $989.79 $1,063.53 $73.74 7 2 182 $1,146.66 $1,232.09 $85.43 1 3 39 $283.84 $304.99 $21.15 2 3 78 $516.78 $555.28 $38.50 3 3 117 $749.72 $805.57 $55.85 4 3 156 $980.29 $1,053.32 $73.03 5 3 195 $1,210.83 $1,301.04 $90.21 6 3 234 $1,441.40 $1,548.78 $107.38 7 3 273 $1,671.97 $1,796.53 $124.56 1 4 52 $367.02 $394.36 $27.34 2 4 104 $673.65 $723.84 $50.19 3 4 156 $980.29 $1,053.32 $73.03 4 4 208 $1,284.52 $1,380.22 $95.70 5 4 260 $1,588.78 $1,707.14 $118.36 6 4 312 $1,893.01 $2,034.04 $141.03 7 4 364 $2,197.25 $2,360.95 $163.70 1 5 65 $450.23 $483.77 $33.54 2 5 130 $830.53 $892.40 $61.87 3 5 195 $1,210.83 $1,301.04 $90.21 4 5 260 $1,579.26 $1,696.91 $117.65 5 5 325 $1,947.68 $2,092.78 $145.10 6 5 390 $2,316.10 $2,488.65 $172.55 7 5 455 .$2,684.55 $2,884.55 $200.00 1 6 78 $533.41 $573.15 $39.74 2 6 156 $987.42 $1,060.98 $73.56 3 6 234 $1,441.40 $1,548.78 $107.38 4 6 312 $1,881.13 $2,021.27 $140.14 5 6 390 $2,320.87 $2,493.77 $172.90 6 6 468 $2,760.59 $2,966.25 $205.66 7 6 546 $3,200.34 $3,438.77 $238.43 COMMINGLED ORGANIC SERVICE • 1 - 1- 65-Gallon-cart - $0:00 - - - - - $85:05 --$85.05 1 1 96 Gallon cart $0.00 $102.09 $102.09 1 1 2 cubic yard bin $0.00 $170.25 $170.25 -12- FL CALIFORNIA - ONALCI " ICOKPORATRU Two Year Rate Adjustment Commingled Organics Solutions On the Rcad to Zero Waste • Over 65% of Recycling was Shipped to China • Today Contamination Must be 0.5% or Less • 24 Recyclable Items Now Banned On Road to Zero Waste businessGrecn...... MO yRubbish'duet,•. beg 000 OO tit } China to U.S.: Please stop sending us your .unk 000 sAbcpcNDENT ., China's ban on imported Plastic 'impending crisis' for UK *taste recycling � .. r.. S, •- M1111^ roe Mare a.a WWI r rq rq SIMON ELLIN Britain is hooding waste trnhdown with used plastic • flooding to be bend or sent to landfill, warns racycllny chief 1.9 Era IAA .+w+.rw�ncy f..awc T Proposed vg*I4Af Two Year Residential Rate • CPI Based Service - • Disposal Tonnage - • City Fees - $0.96 $0.18 $0.28 Total Monthly Adjustment = $1.42 Rates Increase from $18.60 to $20.02 (7.65%) Senior Discount Rates - Monthly Adjustment = $1.14 / month - Increase from $14.90 to $16.04 Silver Bag Rates - Monthly Adjustment = $0.20 / bag - Increase from $2.55 to $2.75 On the Road to Zero Waste 4-41(::' Additional Nyd4 4,ie Rate Information • Lowest Residential Rate in Region Total Residents Versus Senior Discount and Silver Bags • Total Residents = 6503 ■ Senior Discount & Silver Bags = 1794 • Over Last 13 Year / CPI Increase 2 8.5 % / Rate Increase 20.3 % • 26% of Residents on Senior Discount • 2% of Residents on Silver Bags .14 Services ,4 *of _AiIda • Four Bulky Item Collections • Two Annual Clean Ups • Shred Days • Community Clean Up Events • Active Engaged Partner edcodisposal,com CO California State Mandates • AB 1826 - Mandatory Commercial Organics Recycling • AB 1594 - 2020 ADC No Longer Counts as Diversion • SB 1383 — Short Lived Climate Pollutants (SLCP): Organic Waste Methane Emissions Reductions 2020 - 50% Reduction in Landfilled Organics 2022 - Regulations Take Effect - 2025 - 75% Reduction in Landfilled Organics / Residential & Commercial / 20% Increase in Recovery of Disposed Edible Food On tin Road to Zero Waste Commingled ‘10 voiv Organics Collection • Expand Green Waste Service to Include Food Waste • Easy & Convenient / Increase Participation • Residential & Commercial • Residential Kitchen Caddie Offered - Dishwasher Safe / Odor & Bug Resistant On the Road to Zero Waste N O State -of -the -Art Anaerobic Digestion (AD) Facility • Produces Renewable Natural Gas (RNG) • Assists Jurisdictions to Meet State Mandates • Carbon Neutral Fleet • Begin Serving Customers in January 2021 • New Organics Rates Apply in 2021 On t' ? Road to Zero Waste V4� What is Anaerobic Digestion • Biological Process • Microorganisms Breakdown Material • Biogas Upgraded into Renewable Natural Gas (RNG) Gas Main Post 1.0 INO AnUpgrading Anaerobic .4 Digester Digester ammimm. irj i. OMINIZOI Separator On the Road to Zero Waste ifV _ �� The Process 4it Three Week Process Rotating Paddle Mixes Digestate / Bio Gas Released Solid & Liquid Digestate Used as Organic Fertilizer Raw Gas Upgraded into RNG / Injected into Pipeline On t" Road to Zero Waste N44 Public Education ,41 • Commercial Site Visits / Meetings • Direct Mail Piece / Environmental Times Newsletter • Email Notifications / Web Page Information • Point of Delivery Cart Tags / Follow-up Postcards Commingled Organics Recycling WHAT GOES IN THE ORGANICS CONTAINER? • Fruits & vegetables including peels. ohs & rinds • Bread, pasta & other grains • Daby products & egg shells • Coffee grounds & tea leaves • Meat & bones • Brusn, grass clippings, weeds, hedge trimmings, branches. floral 1Einlmings, • Paper napkins & Yowels • Paper caffee fitters CL ASS W.AL. Uygur 0..1 OR PLASM h.J JWCE BOUPLKL WYK a.?.as•CAR1CAa1 ..O GM, KOCK C004 .R1 Ft OR 1K4K KJ LKKAS FAr, 1•L OR ails Asa KJ PLASi1C a+os For more nformabon abort EDCOb OrgenIC waste IecyC ing program, vise ou web.ite a edcodisposalcnm. eacoaepoeal.com "We'!! rake Care of If .ap,* On the Road to Zero Waste • 11•ndoLq R *pe W Ur I✓MM .* 1....•'cwar:n .a sum. .tow* /wMs.MMa!u.rMlKr•'w.t.•v 1.wv 11K 11 v. wa• ..T.•w.v.vgl.r'.yYK� x �a.I.r�pMa Y`wiy Y•W�wYlw.-lrw.Or!!Y. s• 1qY II��UIIII��f{IIIII� I��I��I,,; Questions Lihiztir Tie 1). On the Road to Zero waste RESOLUTION NO. 2019 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING A RESOLUTION FOLLOWING A PUBLIC HEARING PURSUANT TO PROPOSITION 218 TO CONSIDER A RATE ADJUSTMENT FOR REFUSE SERVICES INCLUDING RECYCLING AND YARD WASTE DISPOSAL PROVIDED TO NATIONAL CITY RESIDENCES AND BUSINESSES BY EDCO DISPOSAL CORPORATION AND AMENDING THE AGREEMENT BETWEEN THE CITY AND EDCO DISPOSAL CORPORATION TO INCREASE THE MONTHLY RATES FOR REFUSE COLLECTION SERVICES. WHEREAS, the Proposition 218 process requires that written notification be given to all affected property owners, and that those property owners are given a 45- day period in which to submit written protests if they oppose the proposed rate adjustments; and • WHEREAS, pursuant to Proposition 218, on April 4, 2019, a Public Notice was mailed to all property owners giving notice of the date, time and place wherein a Public Hearing would be held on the proposed rate adjustment; and WHEREAS, on May 21, 2019, the City Council held a Public Hearing on the proposed increases in rates; and WHEREAS, during the public hearing, the City Council heard and considered all oral objections and protests against the proposed increases in rates; and . • WHEREAS, prior to the conclusion of the Public Hearing, the City Clerk received all written protests to the proposed increases in rates; and WHEREAS, the City Clerk counted the written protests; and WHEREAS, written protests against the proposed increases in rates were not presented by a majority of the owners or the tenants; and WHEREAS, having no majority protest, on May 21, 2019,the City Council considered the rate adjustment as it relates to amending the Agreement; and WHEREAS, on September 25, 1990, the City of National City and EDCO Disposal Corporation ("EDCO") entered into an Agreement for Collection of Rubbish and Trash between the City of National City and EDCO Disposal Corporation ("Agreement") providing for refuse collection services; and Resolution No. 2019 — Page Two WHEREAS, the Agreement was amended on June 22, 1993, pursuant to Resolution No. 93-86; on November 9, 1993, pursuant to Resolution No. 93-176; on June 21, 1994, pursuant to Resolution No. 94-88; on September 16, 1997, pursuant to Resolution No. 97-119; on June 12, 2001, pursuant to Resolution No. 2001-88; and on May 20, 2003, pursuant to Resolution No. 2003-64; June 21, 2005, pursuant to Resolution No. 2005-134 June 5, 2007, pursuant to Resolution No. 2007-116; June 4, 2013 pursuant to Resolution No. 2013-79; and on June 2, 2015 pursuant to Resolution No. 2015-82 and June 6, 2017 pursuant to Resolution No. 2017-87 ; and WHEREAS, pursuant to Section 23 of the Agreement, titled "Applications for Rate Change", EDCO may apply annually for changes in the rates charged and WHEREAS, EDCO has applied for an increase of $1.42 per month to the residential rate, and $8.75 per month to the standard commercial rate and WHEREAS, the proposed increases are based on an increase in the tipping fees at the landfill, the decrease in revenue from recyclables sold, and the San Diego Consumer Price Index; and WHEREAS, pursuant to Section 4 of the Agreement. titled "Rates for Contractor's Services", EDCO shall charge no more than the maximum rate set forth in the Rate Schedule, which is set out in Exhibit "A"; and WHEREAS, the proposed Amendment to this Agreement is reflected in Exhibit "A"; and WHEREAS, the proposed increases in rates reflected in the Rate Schedules will be effective July 1, 2019. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City does hereby finds, orders and declares that there was no majority protest of the proposed rate adjustment. BE IT FURTHER RESOLVED'that the City Council does hereby authorize EDCO Disposal Corporation to increase the rates charged for refuse collection services as set out in Exhibit "A" attached hereto and by this reference is incorporated herein and though set forth in full with the Rate Schedules titled "RESIDENTIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 1, 2019" and "COMMERCIAL RATES ADJUSTMENT NATIONAL CITY, Rate Adjustment — July 1, 2019". Said Amendment is on file in the office of the City Clerk. // Resolution No. 2019 — Page Three BE IT FURTHER RESOLVED that the City Council authorize the Mayor to execute the Amendment to the Agreement between the City of National City and EDCO Disposal Corporation. PASSED and ADOPTED this 21st day of May, 2019 Alejandra Sotelo-Solis, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney EXHIBIT A NATIONAL CITY RATE SCHEDULE July 1, 2019 1. RESIDENTIAL Per month residential single family properties Per month second thru fourth unit Per month commingled organics per home/unit 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 (1) 90 gallon automated cart One time per week, per month (2) 90 gallon automated cart One time per week, per month (3) 90 gallon automated cart One time per week, per month (4) 90 gallon automated cart One time per week, per month (5) 90 gallon automated cart One time per week, per month Additional or unusual accumulation of rubbish (per cubic yard) New Adopted Rates $1.42 $1.12 $2.50 $0.98 $1.00 $1.14 $0.20 $1.66 $3.08 $3.96 $4.89 $6.39 $1.66 EXHIBIT A New Adopted COLLECTION NUMBER YARDS Rates FREQUENCY OF BINS PER MONTH REFUSE BIN SERVICE 1 1 13 $8.75 2 1 26 $14.77 3 1 39 $20.79 4 1 52 $26.99 5 1 65 $33.19 6 1 78 $39.39 7 1 91 $45.58 1 2 26 $14.95 2 2 52 $26.81 3 2 78 $38.68 4 2 104 $50.36 5 2 130 $62.05 6 2 156 $73.74 7 2 182 $85.43 1 3 39 $21.15 2 3 78 $38.50 3 3 117 $55.85 4 3 156 $73.03 5 3 195 $90.21 6 3 234 $107.38 7 3 273 $124.56 1 4 52 $27.34 2 4 104 $50.19 3 4 156 $73.03 4 4 208 $95.70 5 4 260 $118.36 6 4 312 $141.03 7 4 364 $163.70 1 5 65 $33.54 2 5 130 $61.87 3 5 195 $90.21 4 5 260 $117.65 5 5 325 $145.10 6 5 390 $172.55 7 5 455 $200.00 1 6 78 $39.74 2 6 156 $73.56 3 6 234 $107.38 4 6 312 $140.14 5 6 390 $172.90 6 6 468 $205.66 7 6 546 $238.43 COMMINGLED ORGANIC SERVICE 1 1 65 Gallon cart $85.05 1 1 96 Gallon cart $102.09 1 1 2 cubic yard bin $170.25