HomeMy WebLinkAbout2016-65 CC Reso - Solid Waste Rate AdjustmentsRESOLUTION NO. 2016- 65
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING SOLID WASTE
COLLECTION RATE SCHEDULE ADJUSTMENTS FOR FIVE-YEAR PERIOD COMMENCING
JANUARY 1, 2017- DECEMBER 31, 2021
WHEREAS:
1. The City of Ukiah ("City") provides solid waste collection services to residents and
businesses in the City through a First Amended and Restated Waste Collection Agreement
("Collection Agreement"), dated October 7, 2015, between the City and Ukiah Waste Solutions, Inc.
("Company"); and
2. Section 6.1 of the Collection Agreement adopted rates for the waste collection services
described in Section 5 of the agreement and Section 6.2 provides for annual modification of those
rates based on increases or decreases in the Consumer Price Index, the Fuel Index and Recycling
Reduction and Pass-through Costs. Pass-through Costs include the cost of disposing of collected
solid waste at the Ukiah Transfer Station; and
3. Section 6.4 of the Collection Agreement provides that every five years, beginning no later
than April 2, 2016, for the rates effective on January 1, 2017, and every five years thereafter, the City
shall conduct a review of the rates to determine whether the automatic annual adjustments
adequately account for the actual increases or decreases in the Company's reasonable operating
costs; and
4. In conducting the five-year rate review the City may conduct such investigation as it deems
appropriate and the Company must cooperate with that investigation which may include the inspection
and copying of Company records and a Review or Audit of the Company's financial records by City
retained Certified Public Accountant ("CPA"); and
5. In the Collection Agreement, the City and the Company have agreed that the five-year rate
review shall be conducted in accordance with the procedures and standards in Proposition 218
(California Constitution, Article 13D, Section 6); and
6. The City staff and its retained CPA conducted an investigation they deemed appropriate,
including a review of the Company's financial statements, as reviewed by Moss Adams, LLP, a major
national accounting firm, and other Company financial records; and
7. The results of the investigation and the staffs recommendations, including the data relied
upon and the staffs analysis and recommendations, were summarized in the Agenda Summary
Report for the City Council meeting on September 21, 2016, and have been publically available on the
City's website at http://www.citvofukiah.com/solidwastenotice/; and
8. This same information is deemed a "City Manager's Report" and recommendation pursuant
to Ukiah City Code Section 3952; and
9. Forty-seven days prior to the hearing scheduled for November 16, 2016, the City has
provided direct mail notice, a true and correct copy of which is attached hereto as Exhibit A, to every
owner of property in the City, as listed on the Mendocino County tax records, and every customer of
curbside waste collection services in the City; and
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10. The City Clerk has published notice in the Ukiah Daily Journal of the proposed rate
adjustments in compliance with Ukiah City Code Section 3954; and
11. After conducting the hearing on November 16, 2016, the City received three (3) written
protests to the proposed rate schedule, which was less than 50% of the affected property owners; and
12. The City Council is scheduled to further consider the proposed rate adjustments at a
hearing conducted pursuant to Ukiah City Code Section 3955 on December 7, 2016; and
13. After conducting the hearing on November 16, 2016, and considering all of the evidence,
statements and arguments presented during the hearing and considering the written protests filed
pursuant to Proposition 218, the City Council determined that the proposed initial rate schedule,
attached hereto as Exhibit B ("Initial Rate Schedule") complies with Proposition 218 and that said
rates provide reasonable rate adjustments which are fair to both the Company and the ratepayers;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah hereby
adopts the Initial Rate Schedule, as set forth in Exhibit B, subject to final consideration thereof at a
hearing on December 7, 2016.
BE IT FURTHER RESOLVED that the rate schedule adopted by this Resolution shall be
effective on January 1, 2017, unless otherwise ordered by the City Council on December 7, 2016. All
prior rate schedules in conflict herewith are repealed upon the effective date of the new schedule. All
other contract conditions for service remain unaltered and in full effect and the City Clerk shall cause
the publication of this resolution in the Ukiah Daily Journal within 10 days following Council action on
December 7, 2016, pursuant to the provisions of Section 3957 of the Ukiah City Code.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 7t' day
of December 2016, by the following roll call vote:
AYES: Councilmembers Scalmanini, Crane, Mulheren, Doble, and Brown
NOES: None
ABSENT: None
ABSTAIN: None
iii 0 67cv-,,
J-1 t9, 1 i?-0h4v , Mayor
ATTEST:
Kristine Lawler, City Clerk
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0
M01 ltl_1
City of Ukiah
NOTICE OF PUBLIC HARING ON PROPOSED SOLID WASTE COLLECTION AND DISPOSAL SERV('
RATE SCHEDLI E ADJUSTAiNTS
(Please share this information with tenants)
Hearing Date & Time: November 16, 2016 at 6:15 p.m. or as soon thereafter as possible
Hearing Location: City of Ukiah, Council Chambers
300 Seminary Avenue, Ukiah, CA 95482
The City of UUah City Council C*City") will conduct a public hearing on November 16, 2016 on proposed increases in the
monthly solid waste collection and dispDW (solid waste) rates applicable to all parcels in the City of Ukiah, including the parcel
for %inich you are simwn as the property owner of record based on the County of Mendocino 2015 2016 Secured Tax Roll, and or
at which you are shown as the customer billed for solid waste service. If adopted, the rate imaeases will be reflected on utility
bills dated on or after January 1, 2017 and for bills issued on or after January 1. 2018. 2019.2020 and 2021.
This Notice of Public Hearing provides information regarding the proposed rate adjustment to the City's solid waste collection
and disposal service customers pursuant to the requircumats of California Constitution Article XIII D Section 6 (commonly
referral to as Proposition 218). The propr»sed rate adjustments will be presented to the City Council for consideration and possible
adoption on November 16. 2016. commencing at 6:15 p.m. in the Council Chambers located at 300 Seminary Avenue. This
notice also provides information on how rates are calculated the reasons for the proposed rate adjustments, how customers can
receive more information on the effect of the proposed rate adjustments on their solid waste collection and disposal service, and
how to file a protest against the proposed rate adjustments. At the public Leaning. the City Council will consider all written
protests against the proposed fee or charge, and all other comments submitted in writing prior to the heating or expressed durutg
the hearing.
The Amount of the Fee Imposed on Each Parcel:
The proposed rate increase. as of January 2017, is 3.56% - 9.38%. depending on the size of the service received During the neon
four years, including January 2018. January 2019. January 2020. and January 2021, the rates uillincrease or decrease based on
the following changes to indexes and pass-through costs: (1) the percentage change in the Consumer Price Index. All Urban
Consumers. U.S. City Average (`CPP') over the precious year, (2) the percentage change. Junc over June of the previous year.
in the Energy Wormation Administration Petroleum & Other Liquids index over the base year ending June 30. 2015, (3) any
changes to the gate fee at the Ukiah Transfer Station. (4) any changes to costs paid by the franc h see to process recychnbles. and
(5) changes in regulatory fees, all in accordance with the Contract for Collection. Transportation and Disposal of Gathage, Refuse
and Rubbish and Recycling of Recyclable Materials from within the City of Ukiah ("Waste Collection Contract') be ween the
City and Ukiah Waste Solutions. Inc., a private company. After the January 2017 rate increase, the rates will automatically
increase or decease each year in accordance with the Waste Collection Contract. winich will be available for inspection at the
Civic Center.
The following table indicates the existing and proposed monthly solid -:erste service rates for residential service to each parcel in
the City of Ukiah, beginning January 1, 2017:
Residential Service
Current
January
2017
f.1UT'nit
January
1 2017
Cwremt
January
1 2017
Service Level
C%wWde service
P a -out service
Remote Service
No service
S 4.80 S 5.25
S 480
S 5.25
4.80
5.25
1-10 gallon service °'
4.80 5.25
7.42
7.69
14.84
15.38
11-20 gallon service
1012 10.48
12.69
13.15
2011
20.84
21-32 p1lon service
18.17 18.82
22.26
23.06
29.68
30.75
33-M gallon service
4293 44.47
52.28
54.16
59.70
61.85
69-95 sallon service
60-48 62.65
75.53
78.24
82.95
85.93
96 + p1lon service
S.70. gal $.73 gal
$ 81 gal
S 84 gal
S81oll
I $.84/ #
Overstuf5td can extra stop
6.45 6.69
7.42
769
14.84
15.38
1- bin
S 12023 S 124.55
NtA
N A
N A
N A
I's -yard bin
142.07 147.17
NIA
N A
N A
N/A
Larm bins at per 94.73 98.13
NIA
N A
N A
NA
° plus remote service flee of $7.42 which is changing to $7.69
No Service and 10 gallon
can rate is 500.0 of the 20 ollon can rate for curbside service
Nfisce[l-mzaus and Special
Services will also increase by 3 59°A
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Notice of Public Healing — Solid Waste Collection and Disposal Service Rate (continued)
The Reason for and Basis Upon R7dch the Fee Increase was Calculated:
The Waste Collection Contract negtures a rate review every 5 years. begiunioag in 2016- The 3.56° o - 9-380* rate increases were
calculated after considering the frwchisee's rate request. studying the reviewed firsancial statements and carefWly evaluating the
changes in fiiel costs. the implementation of the niL-ed orgastic waste collection system. and other operating costs of tAdah Waste
Solutions for the period ending December 31. 2015- The proposed increase results primarily from a $12 ton increase of the
landfill closure surcharge on the gate fee at the Utah transfer station. The 9.830a increase in the fee for a 10 -gallon service
results from the need to recover the full cost of that service. Further detail on hove these rates were calculated is available on the
City's website at http- my %v.cityofiddah.com
Submit a Written Protest: City Clerk. 300 Seai; iney Avenue, Ukiah. CA 95482
An owner or tenant of property receiving solid waste service from the City may protest the proposed solid waste collection and
disposal rates by submitting a written protest by mail or in person to the City Clerk- Written protests must be received (not
postmarked) by the City Clerk before or dining the public hearing. Any protest submitted by e-mail or other electronic means
will not be accepted. To be valid. protests must be signed by the property owner or tenant. and must identify the property by
street address or Mendocino CountyAssessor's Parcel Number of the property receiving solid waste service- Only one written
protest per identified parcel or property will be counted for purposes of determining ining whether there is a majority protest. In
accordance with California Constitution- Article 13D. Section 6(a)(_). if. by the close of the public heating. written protests
against the proposed solid waste collection and disposal rates are filed by a majority of the affected property owners. the City
Council will not approve the proposed solid waste rates. The City reserves the right to verify whether any person filing a protest
is an owns or a renter legally obligated to pay the fee. To assist with this verification. the City requests inclusion of the applicable
utility account number on the protest.
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EXHIBIT B
CURBSIDE SOLID WASTE COLLECTION
INITIAL RATE SCHEDULE, EFFECTIVE
January 1, 2017
2017
Service Level Rate
Curbside Service
$
124.55
No Service & 10 gallon can rate
$
5.25
20 gallon can rate
$
10.48
32 gallon can rate
$
18.82
68 gallon can rate _
$
44.47
95 gallon can rate
$
62.65
Other combinations - rate per gallon
$
0.73
1 yard bin rate
$
124.55
1.5 yard bin rate
$
147.17
2 yard bin rate
$
196.25
3 yard bin rate
$
294.35
4 yard bin rate
$
392.47
6 yard bin rate
$
588.71
Packout Service
10 gallon can rate
20 gallon can rate
32 gallon can rate
68 gallon can rate
95 gallon can rate
Other combinations - rate per gallon
Remote Area Service
Add to the Packout Service rate.
In areas with limited access, an additional fee is charged to fund the costs of special equipment
and special handling necessary to provide garbage pickup services. This fee is in addition to the
"Packout Service" fee listed in this schedule.
Commercial / Multi -Family Service
10 gallon can rate
20 gallon can rate
32 gallon can rate
68 gallon can rate
95 gallon can rate
$ 7.69
$ 13.15
$ 23.06
$ 54.16
$ 78.24
$ 0.84
$ 7.69
$ 5.45
$ 10.87
$ 19.54
$ 46.18
$ 65.08
1 yard bin rate
$
124.55
1.5 yard bin rate
$
147.17
2 yard bin rate
$
196.25
3 yard bin rate
$
294.35
4 yard bin rate
$
392.47
6 yard bin rate
$
588.71
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