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HomeMy WebLinkAbout2017-59 CC Reso - Adopting Solid Waste Collection Rates1 1 1 RESOLUTION NO. 2017-59 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING SOLID WASTE COLLECTION RATE SCHEDULE ADJUSTMENTS FOR FIVE-YEAR PERIOD COMMENCING JANUARY 1, 2018- DECEMBER 31, 2022 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, 2018, 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 records and proposal for rate changes based on market conditions and increased costs; 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 October 4, 2017, and have been publically available on the City's website at http://www.cityofukiah.com/rate-increase-notices/; and 8. This same information is deemed a "City Manager's Report" and recommendation pursuant to Ukiah City Code Section 3952; and 9. At least forty-five (45) days prior to the hearing scheduled for December 6, 2017, 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 Page 1 of 5 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 December 6, 2017, the City received 144 written protests to the proposed rate schedule, which was less than 50% of the affected property owners; and 12. After conducting the hearing on December 6, 2017, 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 6, 2017. BE IT FURTHER RESOLVED that the rate schedule adopted by this Resolution shall be effective on January 1, 2018, unless otherwise ordered by the City Council on December 6, 2017. 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. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 6th day of December 2017, by the following roll call vote: AYES: Councilmembers Brown, Crane, Mulheren, and Mayor Doble NOES: Councilmember Scalmanini ABSENT: None ABSTAIN: None ATTEST: 4 0,M.N., depuecj -Cor Kristin awler, City Clerk Page 2 of 5 1 1 1 1 1 City of Ukiah NOTICE OF PUBLIC HEARING ON PROPOSED SOLID WASTE COLLECTION AND DISPOSAL SERVICE RATE SCHEDULE ADJUSTMENTS Please share this information with tenants) Heating Date & Time: December 6. 201' at 6:15 p.m. 01 as soon thereafter as possible Heating Location: City of Ukiah. Council Chambers 300 Seininar Avenue. Ukiah. CA 95482 The Cit' of Ukiah City Council ( I'm ) will conduct a public heanng on December 6. 2017. on proposed increases in the ruoutlily solid waste collection and disposal (sohd waste) rates appbcable to all parcels in the City of Ukiah. including the parcel for which you are shown as the property owner of record based on the County of Mendocino 2016.17 Secured Tax Rolland or at which you are shown as the customer billed for solid waste service. If adopted. the rate increases will be reflected on utihry bills dated on or after January 1. 2018. and for bills issued on or after January 1. 2019.2020. 2021. and 2022 This Notice of Public Heating provides information regarding the proposed rate adjustment to the City's solid waste collection and disposal service customers pursuant to the requirements of California Constitution Article XIII D Section 6 (commonly referred to as Proposition 218) The proposed rate adjustments will be presented to the City Council for consideration and possible adoption on December 6. 2017 commencing at 6 15 p 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 ou the effect of the proposed rate adjustments on then solid waste collection and disposal service. and how to file a protest against the proposed rate adjustments At the public hearing. the City Council will consider all written protests agamst the proposed fee or charge. and all other couunenn submitted in writing prior to the hearing or expressed during the hearing The Amount of the Fee Imposed on Each Parcel: The proposed rates. as of January 2018. are outlined in the Schedule A below During the next four years including January 2019. January 2020. January 2021. and January 2022 the rates may increase or decrease based on the following changes to indexes and pass-through costs (1) the percentage change in the Consumer Price Index. -Water and Sewer and Trash Collection Services' (-CPI-) over the previous year June over June. (2) the percentage change. June over June of the previous year. in the Energy Information Adrtunistration Petroleum & Others Liquids index over the base year ending June 30. 2015. (3) any changes to the gate fee at the Ukiah Transfer Station. (4) arty changes to costs paid by the franchisee to process recyclables. and (5) changes in regulatory fees. all in accordance with the Contract for Collection. Transportation and Disposal of Garbage. Refuse and Rubbish and Recycling of Recyclable Materials from within the City of Uluah (-Waste Collecnon Contract.) between the Cit and Ukiah Waste Solutions Inc a private company After the January 2017 rate increase. the rates w11l automatically increase or decrease each year in accordance with the Waste Collection Contract. which will be available for inspection at the Civic Center The Reason for and Basis Upon Which the Fee Increase was Calculated: Ukiah Waste Solutions (UWS)_ the Cine s franchised sohd waste collector. has requested rate increases pursuant to Section 6 5 of the Waste Collection Contact based on cost increases and revenue decreases which are solely the result of extraordinary circumstances beyond the control of (,•WS that it could not have been reasonably anticipated and which unavoidably adverselv affect its opportunity to operate at a reasonable profit The rate increases identified an Schedule A were calculated after considering the franchisees rate request studying the reviewed financial statements and carefully evaluating the changes in costs to meet regulatory requirements, the recycling market. transportation. and other operating costs of Ukiah Waste Solutions for the year ending December 31. 2016 and tyro quarters ending June 30. 201'. Further detail on how these rates were calculated is available on the City's website at hip:/lwsvw,cityofukiah conn Submit a Written Protest: City Cleric 300 Seminary Avenue. Ukiah. CA 95482 An owner or tenant of property receiving sohd waste service from the City may protest the proposed solid waste collection and disposal rates by submitting a written protest by mad or in person to the City Clerk Winn protests must be received (not postmarked) by the City Clerk before or during 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 County Assessors Parcel dumber of the property recenung sohd waste service Only one mitten protest per identified parcel or property will be counted for purposes of determining whether there is a majority protest. In accordance with California Constitution. Article 13D. Section 6(ax2), if. by the close of the public hearing written protests against the proposed sohd waste collection and disposal rates are filed by a majority of the affected property owners the Cin. Council will not approve the proposed solid waste rates The City reserves the nght to verify whether any person filing a protest is an owner or a renter legally obligated to pay the fee To assist with this verification the Cuts' requests seclusion of the applicable utility account number on the protest Page 3 of 5 EXHIBIT A Notice of Public Hearing - Solid Waste Collection and Disposal Service Rate (continued) The following schedule indicates the existing and proposed monthly solid waste service rates for residential senice to each parcel in the City of Ukiah. beginning January 1. 2018: SCHEDULE A Effective Date January 1, 2018 SUMMARY OF RATE ADJUSTMENT FOR STANDARD SERVICES YEAR 2018 Service Level Current 2017 Rate New 2018 Rate Total Monthly Adjustment Curbside Service No Service Minimum Charge $ 5.25 $ 10.00 $ 4.75 10 gallon can rate' $ 5.25 N/A $ 20 gallon can rate' $ 10.48 N/A $ 32 gallon can rate $ 18.82 $ 18.63 $ (0.19) 68 gallon can rate $ 44.47 $ 44.03 $ (0.44) 95 gallon can rate $ 62.65 $ 62.02 $ (0.63) Other combinations - rate per gallon $ 0.73 $ 0.73 $ - 1 yard bin rate $ 124.55 $ 131.80 $ 7.25 1.5 yard bin rate $ 147.17 $ 155.74 $ 8.57 2 yard bin rate $ 196.25 $ 207.67 $ 11.42 3 yard bin rate $ 294.35 $ 311.48 $ 17.13 4 yard bin rate $ 392.47 $ 415.31 $ 22.84 6 yard bin rate $ 588.71 $ 622.97 $ 34.26 Packout Service 32 gallon can rate $ 23.06 $ 24.40 $ 1.34 68 gallon can rate $ 54.16 $ 57.31 $ 3.15 95 gallon can rate $ 78.24 $ 82.79 $ 4.55 Other combinations rate per gallon $ 0.84 $ 0.89 $ 0.05 Remote Area Service Add to the Packout Service rate. $ 7.69 $ 8.14 $ 0.45 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' tee listed In this schedule. 10 and 20 -gallon containers and rates will no longer be available to new customers, effective January 1, 2018. Existing customers with these containers may continue to use them of the new 32 -gallon can rate or receive 0 32 -gallon replacement. Page 4 of 5 1 1 1 Effective Date January 1, 2018 New YEAR 2018 2018 Service Level Rate Curbside Service No Service Minimum Charge 10.00$ 20 gallon can rate 17.12 32 gallon can rate 18.63 68 gallon can rate 44.03 95 gallon can rate 62.02 Other combinations - rate per gallon 0.73 1 yard bin rate 131.80 1.5 yard bin rate 155.74 2 yard bin rate 207.67 3 yard bin rate 311.48 4 yard bin rate 415.31 6 yard bin rate 622.97 Packout Service 32 gallon can rate 24.40 68 gallon can rate 57.31 95 gallon can rate 82.79 Other combinations - rate per gallon 0.89 Remote Area Service Add to the Packout Service rate.8.14 Commercial / Multi-Family Service 20 gallon can rate 20.68 32 gallon can rate 20.68 68 gallon can rate 48.87 95 gallon can rate 68.87 1 yard bin rate 131.80 1.5 yard bin rate 155.74 2 yard bin rate 207.67 3 yard bin rate 311.48 4 yard bin rate 415.31 6 yard bin rate 622.97 SUMMARY OF RATES FOR STANDARD SERVICES 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. *10-gallon containers and rates will no longer be available to new customers, effective January 1, 2018.