City Council
MEETING DATE: 7/25/2018
TITLE:
Title
Resolution Approving Tax Roll Billing, the New Adjusted Rate Schedule of Fees for the Collection, Recycling, and Disposal of Municipal Solid Waste
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FROM:
Deanna Pressgrove Environmental Conservation and Public Works Manager
RECOMMENDATION:
Recommendation
Staff recommends the adoption of a Resolution of the City Council of the City of Cathedral City approving tax roll billing and the increase on the service rates charged to all roll-off, residential, multifamily and commercial customers for cost of living increase based on the Consumer Price Index (CPI) and Riverside County's gate fee increase.
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BACKGROUND:
City Council adopted the 2018-2019 rates at the May 23, 2018 City Council meeting. In the past, Riverside County has accepted a minute order approving the residential rates and tax roll billing. This year, after the May 23 Council meeting the County informed the City that the City needed to adopt a Resolution approving the increase to the residential rates and the tax roll billing.
The information below was also provided to the Council at the May 23, 2018 meeting.
March 2018, Burrtec Waste & Recycling Services respectfully requested an annual rate increase for residential, commercial and roll-off services, in accordance with Article 6, Section 6.3 of the Municipal Franchise Agreement. Pursuant to the franchise agreement, Burrtec is eligible each year to request a rate increase based on the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County Area. The change in the CPI for 12 months ending January 2017 was 2.11%. Attached to this report is a copy of Burrtec’s request along with information from the U.S. Department of Labor.
On May 22, 2018, the Riverside County Board of Supervisors approved an Edom Hill gate fee increase of 3.46%. The disposal rate will increase from $45.96 to $ 47.55 per ton effective July 1, 2018.
DISCUSSION:
Burrtec is requesting a rate increase that incorporates two factors. The CPI increase which is in accordance with the franchise agreement, as well as the County’s decision to increase the cost per ton of disposal at County landfills. The following identifies how the commercial, residential, roll-off and multi-family customer will be impacted. The new proposed rates are set forth in Exhibit A to the proposed resolution.
Commercial Customer
The total monthly commercial fee is composed of several elements with varying increases. The rate breakdown below represents a three-yard container serviced once a week. This is an average service level for most customers.
Service and Franchise Fee Component $ 3.11 increase (CPI)
Riverside County Disposal Fee $ 1.38 increase
If approved, the rate increase would be effective July 1, 2018 and the increase to the average commercial customer will be $5.25 per month.
Residential Customer
The current residential rate is $16.80 a month. If approved, the new residential rate will be $17.83, a 6.13% increase. The residential rate does incorporate an increase to the disposal component for greenwaste disposal. The gate fee for greenwaste disposal has increased from $36 per ton to $46 per ton.
Multi-Family Customers
The total monthly multi-family fee is composed of several elements with varying increases. The rate breakdown below represents the average service level for multi-family housing.
Service and Franchise Fee Component $ 0.47 increase (CPI)
Riverside County Disposal Fee $ 0.49 increase
If approved, the rate increase would be effective July 1, 2018, and the increase to the average multi-family customer will be $1.12.
Multi-Family Customers and Commercial Organic Waste Recycling Laws
The State of California approved AB 341 mandating commercial recycling to begin July 1, 2012. The new law mandates all businesses that have four yards or more of commercial solid waste per week shall have recycling services. The recycling mandate also requires multifamily residential dwellings of five or more units to have recycling services.
The State of California approved AB 1826 in 2014 requiring businesses to recycle their organic waste on or after April 2016. The law requires that on or before January 2016, local jurisdictions must implement an organic waste recycling program to divert organic waste generated by businesses.
The City and Burrtec have worked together to create and implement AB 341 and 1826 programs. We contact the commercial and multifamily customers to provide detailed information on the programs and how, in most cases, implementing recycling diversion programs can reduce their trash bill. We will continue to work with the customers to make sure they have the service level that works best for them.
COLLECTION VIA THE TAX ROLL:
California Health and Safety Code Sections 5473 et. seq, and Section 6.04.030 of the City of Cathedral City Municipal Code authorize the City to adopt a resolution by two-thirds of the members of the City Council to collect solid waste rates on the tax roll, in the same manner and at the same time as the general taxes. In accordance with Health and Safety Code Section 5473, the City has prepared a written report which contains a description of each parcel of real property receiving such services, and the amount of the charge for each parcel for the 2018-2018 tax year. This report is on file with the City Clerk and is attached to the proposed resolution as Exhibit B. By approving the proposed resolution, the City Council would be authorizing the City to collect solid waste rates on the tax roll in the same manner and at the same time as the general taxes.
FISCAL IMPACT:
This rate increase will have no negative impact on City funds. There will be a slight increase in revenue to the general fund because of the rate increase to customers per the franchise agreement.
ATTACHMENTS:
Resolution