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HomeMy WebLinkAboutRainbow Disposal Company, Inc. - Rainbow Transfer - 1990-02-05 &"L V Gt� _g Council/Agency Meeting Held 6A A Deferred/Continued to pproved ❑ Conditionally Approved ❑ Denied City rk s igna Council Meeting Date May 16 2005 Department WNumber PW 05-037 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO HONORABLE MAYOR AND CITY C�O;ADM CIL EMBERS SUBMITTED BY PENELPECB, ' TH-GRAFT, CIT I TRATOR PREPARED BY PAUL EMERY ACTING DIRECTOR OF PUBLIC WORKS SUBJECT Adopt 2005-06 Refuse Rate and Accept Add ional Downtown Collection donated by Rainbow Disposal Zos N)o -.Icx)-.- j Statement of Issue Funding Source Recommended Action Alternative Action(s) Analysis Environmental Status Attachment(s) Statement of Issue 1 The Refuse Collection and Disposal Services Franchise Agreement with Rainbow Disposal Co , Inc (Rainbow) requires an annual review of residential rates Adjustments to the residential curbside rates are made in accordance with this review and with an established formula 2 Rainbow has offered to continue its donation of one additional collection of trash from the downtown sidewalk containers for the six-month period from July 1 2005 through December 31 2005 Funding Source A rate increase of $0 53 per residential unit per month will be implemented and paid to Rainbow There is no impact to the Refuse Fund as the full amount of the increase is paid to Rainbow Recommended Action Motion to 1 Adopt Resolution No �; �Y) � -P a resolution of the City Council of the City of Huntington Beach establishing residential curbside refuse collection rates, and 2 Accept Rainbow's offer to donate one additional trash collection from the downtown sidewalk containers on each Friday Saturday and Sunday as normally scheduled between July and December of 2005 REQUEST FOR ACTION MEETING DATE May 16, 2005 DEPARTMENT ID NUMBER PW 05-037 Alternative Action(s) 1 Deny recommended action to Increase the residential refuse rate The City will continue to be contractually obligated to pay Rainbow for increased amount of$0 53 per residential unit per month effective July 1, 2005 2 Decline the offer of donated additional collections to the Downtown sidewalk trash receptacles and direct staff to notify Rainbow to revert to the original collection schedule Analysis Refuse Rate The existing Refuse Collection and Disposal Services Franchise Agreement (Franchise Agreement) with Rainbow stipulates an annual review of the residential service rate A change in compensation for each contract year (July 1 to June 30) is determined by a formula with three variables The variables and their weighting factors (noted in parentheses) are the Los Angeles-Riverside-Orange County Consumer Price Index (CPI) for March (76%) the County of Orange Landfill Tipping Fee (16%) and the local average price of diesel fuel in March (8%) Landfill fees remain constant at $22 00 per ton The March 2005 CPI shows an increase of 4 02% and diesel fuel costs have an increase of 35 37% In accordance with the contracted formula the rate increase due the contractor effective July 1 2005 is 5 89% or $0 78 per residential unit per month (Attachment 2) Rainbow submitted an addendum to Attachment 2 extending a reduction in this rate increase to residential customers due to economic conditions within the community This reduction if accepted by City Council, represents a savings to the ratepayers of $0 25 per residential unit per month The table below shows the distribution of the new rate assuming the $0 53 increase oar Rate o0 Rainbow Disposal to Rainbow $13 25 $13 78 Materials Recovery Facility to Rainbow $3 00 $3 00 AB939 Education Fund to City) $0 15 $0 15 lCity Administrative Costs to City) $1 25 $1 25 TOTAL $17 65 $18 18 =06== The proposed rate increases the residential refuse charge by $0 53 per unit per month The daily refuse rate shown on the municipal services bill will be $0 5977 The new rate would be effective for all services rendered after June 30 2005 G\R C A\2005\05 037 May 16 Jones(Resolution for Refuse Rate Change)doc 2 5/3/2005 10 13 AM REQUEST FOR ACTION MEETING DATE May 16, 2005 DEPARTMENT ID NUMBER PW 05-037 Rates for commercial service, drop-off, and rent-a-bin were Increased by the formula calculation of 5 89% as detailed in the Franchise Agreement The July 1, 2005 Commercial Refuse Rate is presented as an information item (Attachment 3) This document will become the new Exhibit A of the Franchise Agreement Commercial fees are collected directly by Rainbow and are not under the purview of the City Downtown Collection Service Rainbow Disposal has offered to continue donating refuse collection one additional time on scheduled weekend days (Friday-Sunday) for six months The value of this service is approximately $13,000 The standard collection schedule for this area, and the modified collection schedule with the additional donated collections is shown in Attachment 4 Public Works Commission Action Not required Environmental Status Not applicable Attachment(s) ® . . 1 Resolution No 2 Refuse Rate Certification Letter of April 28 2005 and Addendum to the Letter dated April 29 2005 3 Rainbow Disposal Commercial Service Rates Effective July 1 2005 4 Proposed Temporary Modified Downtown Collection Schedule G\R C A\2005\05 037 May 16 Jones(Resolution for Refuse Rate Change)doc 3 5/3/2005 9 38 AM ATTACHMENT # 1 RESOLUTIONNO 2005-36,_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES WHEREAS, pursuant to Huntington Beach Municipal Code Section 8 21030, the City Council shall establish rates for curbside 'residential collection service"maintaining"basic level of service as defined in the Huntington Beach Municipal Code Section 8 21 010 (u) and(b) respectively NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows 1 That the monthly rate for curbside residential refuse collection for basic level of service shall be $18 18 for each single-family residence and each dwelling unit within a duplex, a triplex, or a four-plex receiving noncommercial refuse collection service This equates to a daily rate of$0 5977 This increase shall take effect on all billings dated after July 1 2005, prorated for service from and after July 1 2005 2 That this charge for residential curbside collection will be combined with the residential water billing process PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of May 1200, A Q 7 a REVIEWED AND APPROVED AJROVED AS TO FORM City Ad �strator C ty�Attomey ms 5 INITIAT77VED Director of Public orks 05reso/refuse rate Res No 2005-36 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I JOAN L FLYNN the duly elected qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of said City do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular- meeting thereof held on the 16fh day of May, 2005 by the following vote AYES Hansen Coerper Sullivan Hardy Green Bohr Cook NOES None ABSENT None ABSTAIN None oftio City erk and ex-officio rk of the City Council of the City of Huntington Beach California ATTAC H M E N T #2 d s a DISPOSAL CO , INC PO BOX 1026 ® HUNTINGTON BEACH, CA 92647-1026 • PH (714) 847-3581 FAX (714) 841-4660 April 29, 2005 Mr Dan Villella CPA Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92647 RE 2005 Solid Waste Disposal Rate Certification As an addendum to our letter to you dated April 28, 2005, we are providing you with an updated rate increase schedule Please notice that the new schedule represents a reduction from the formula increase of$ 78 per household to $ 53 per household We are pleased to offer this reduced rate increase to residential customers We wish to do so due to economic conditions within the community The remainder of the components of the certificate letter is unchanged Existing Refuse Reduced Rate New Refuse Rate Change Rate 13 25 53 13 78 If you have any questions, please feel free to call Sincerely, Bruce Shuman, CPA Chief Executive Officer Cc Debra Jubmsky PRINTED ON RECYCLED PAPER B e � ,ni DISPOSAL CO , INC PO BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 o PH (714) 847-3581 FAX (714) 841-4660 April 28 2005 Mr Dan Villella CPA Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach California 92647 RE 2005 Solid Waste Disposal Rate Certification Below is the 2005-2006 Refuse Rate calculation for the City of Huntington Beach residential and commercial solid waste collection provided by Rainbow Disposal Co Inc The rate calculated utilized the formula as specified in sections 11 and 12 as amended of the Refuse Collection and Disposal Services Franchise Agreement (the Agreement) between the City of Huntington Beach and Rainbow Disposal Co Inc Data Items Dump Fuel CP1 Fee$/ton Price$/Gal 2003 1876 2200 1 388 2003 March CPI 1882 2200 1 388 2004 191 5 2200 1 712 2005 1992 2200 2 317 Percentage Change CPI Dump Fee Fuel Price 4 02% 0 00% 35 37% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 100% Resultant Rate Change Factor 3 056% 0 000% 2 829% 5 885% Application of Rate Change Factor to the Residential Rate Existing Percent Rate New Rate Change Change Rate Refuse Rate $ 1325 5 885% 078 $ 1403 MRF Rate 300 0 000% 300 Total Rainbow Rafe 1625 1703 City Administrative Fee 140 140 Total Residential Rate $ 1765 $ 1843 Commercial Refuse Rate Change Percentage 5 885% Existing Percent New Rate Change Rate City Service Cost Cap $ 757 933 5 885% $ 802 539 PRINTED ON RECYCLED PAPER 4 Mr Dan Vlllella CPA Director of Finance City of Huntington Beach Apn1 28 2005 Page 2 of 2 Supporting documents including CPI report fuel bills and commercial rate schedules are attached The commercial rate schedule reflects the franchise fee rate 5% of gross refuse collection receipts CERTIFICATION The foregoing is complete and accurate to the best of my knowledge /Z A Bruce Shuman CPA Chief Executive Officer Rainbow Disposal Co Inc ACKNOWLEDGEMENT Dan Villella CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER ATTACHMENT #3 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2005 Standard Service (shown on dollars per month) * Bin Size 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week $ 6256 $ 10221 $129 34 Per Week 2 x Week $ 9937 $148 99 $198 21 3 x Week $124 84 $190 18 127350 4 x Week $140 34 $225 51 $327 27 5 x Week $165 13 $278 04 $418 13 6 x Week $191 56 $320 61 $490 04 *Contractor may make extra charges for special or additional services in accordance with Section 8 21 170 (b) of the Huntington Beach Municipal Code Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard) (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $260 88 $401 45 $557 06 $669 42 $854 82 $1,002 41 Temporary Service Service Size Service Time Service Rate 3 Cu Yd Rent-A-Bin Two (2) days $ 48 00 per load 3 Cu Yd Rent-A-Bin Weekend $ 60 00 per load 40 Yard Drop Off Box* Four (4) days $ 369 00 per load 10 Yard Drop Off Box ** Four (4) Days $ 392 00 per load *Highsede (6 tons max ) **Lowside (8 tons max ) Any container that exceeds these tonnage limitations is subject to additional dump fees and the customer may have to order an additional container to comply with State of California weight limitation laws (Extra days for 40 and 10-yard DOB's are $15 00 each ) ATTACHMENT #4 STANDARD DOWNTOWN COLLECTION SCHEDULE WITH PROPOSED DONATED COLLECTIONS July 1 I 1 I 1 1 2 (+1) 2 (+1) 2 (+1) August 1 1 1 1 2 (+1) 2 (+1) 2 (+1) September 1 1 1 1 2 (+1) 2 (+1) 2 (+1) October 1 1 2 +1 2 +1 2 (+1) November 1 1 1 (+1) 1 (+1) December 1 1 1 (+1) 1 +1) Additional pick-ups to be donated by Rainbow Disposal are noted in parentheses CAROUTING HEFT INITIATING DEPARTMENT Public Works SUBJECT Adopt 05/06 Refuse Rate and Accept Additional Downtown Collectoon donated by Rainbow COUNCIL MEETING DATE May 16, 2005 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applivable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Attached ❑ Contract/Agreement (w/exhibits if applicable) Not Applicable Signed in full by the City Attorney) Attached ❑ Subleases Third Party Agreements etc Not Applicable (Approved as to form by City Attorney) Certificates of Insurance (Approved b the City Attorne Attached ❑ ( pp Y Y Y) Not Applicable Attached ❑ Fiscal Impact Statement (Unbudget over$5,000) Not Applicable Attached ❑ Bonds (If applicable) Not A placable Attached ❑ Staff Report (If applicable) Not Applicable Commission, Board or Committee Re ort If applicable Attached El p ( pp ) Not Applicable Attached ❑ Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORVYARDED Administrative Staff ) Assistant City Administrator Initial City Administrator Initial City Clerk ( ) EXPLANATION FOR RETURN OF ITEM RCA Author Jones (Jubinsky) Council/Agency Meeting Held Deferred/Continued to ❑Approved ❑ Conditionally Approved ❑ Denied City Clerk s Signature Council Meeting Date May 16 2005 Department ID Number P 05-037 CITY OF HUNTINGTON BEACH 4 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO HONORA E MAYOR AND CITY CCOUM NCIV EMBERS SUBMITTED BY PENE PE CU BRETH-GRAF CT I�� MINISTRATOR PREPARED BY PAUL EMERY ACTING DIRECTO O�F PUBLIC WORK SUBJECT Adopt 2005-06 Refuse Rate an Accept Additional Downtown Collection donated by Rain ow Disposal oo Statement of Issue Funding Source Recommended Action AlteT t ve Action(s) Analysis Environmental Status Attachment(s) Statement of Issue 1 The Refuse Collection andervices Franchise Agreement with Rainbow Disposal Co Inc (Rainbow),/ nnual review of residential rates Adjustments to the residential curbside re in accordance with this review and with an established formula 2 Rainbow has offered to contion of one additional collection of trash from the downtown sidewalk contai ers for the six-month period from July 1, 2005 through December 31, 2005 Funding Source A rate increase of $0 53 per residential unit per month will be implemented and paid to Rainbow There is no impact to the Refuse Fund as the full amount of the increase is paid to Rainbow Recommended Action Motion to 1 Adopt Resolution No o�0�s"3la a resolution of the City Council of the City of Huntington Beach establishing residential curbside refuse collection rates and 2 ,Accept Rainbow's offer to donate one additional trash collection on each Friday, Y Saturday, and Sunday on the downtown area sidewalks between June and December of 2005 7 L 1( Council/Agency Meeting Held: J Deferred/Continued to: XApproved ❑ Conditionally Approved ❑ Denied ti Cit rerlrs SA nat e Council Meeting Date: May 17, 2004 Departure ID N ber: -04-046 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: WILLIAM P. WORKMAN, Acting City Administrator PREPARED BY: ROBERT F. BEARDSLEY, Director of Public Work J i {C7'_ SUBJECT: Adopt 2004-05 Residential Refuse Rate, and Approve Modificationil =; the Downtown Refuse Can Collection Schedul y Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis, Environmental Status,Attachment(s) Statement of Issue: The Refuse Collection and Disposal Services Franchise Agreement with Rainbow Disposal Company, Inc. (Rainbow) requires an annual review of residential rates. Adjustments to the residential curbside refuse rates are made in accordance with this review and established formula. As a second issue, Rainbow's donated enhanced collections schedule for the Downtown trash receptacles is scheduled' to end on June 30, 2004. Funding Source: An increase of $0.21 per residential unit will be paid to Rainbow. There _ will be no impact to the Refuse Fund as the full amount of the increase is paid to Rainbow. Recommended Action: Motion to 1) Adopt Resolution No.�)-M—= A a resolution of the City Council of the City of Huntington Beach establishing residential curbside refuse collection rates. 2) Accept -Rainbow Disposal's offer to credit the City for one additional trash collection on each Friday, Saturday and Sunday that is normally scheduled between June and December of 2004. REQUEST FOR COUNCIL ACTION MEETING DATE: May 17, 2004 DEPARTMENT ID NUMBER:PW-04-046 Alternative Action(s): 1) Deny recommended action to increase the residential refuse rates. The City still continues to be contractually obligated to forward the increased amount of $.21 per residential unit to Rainbow. 2) Decline the offer of donated additional collections to the Downtown trash receptacles. 3) Direct staff to contact Rainbow Disposal and revert to the original, unenhanced service schedule on the Downtown trash receptacles. Analysis: Rate: The existing refuse services agreement with Rainbow calls for an annual review of the residential service rate. A change in compensation for each contract year (July 1 to June 30) is determined by a formula with three variables. The variables and their weighting factor (noted in parenthesis) are the March Los Angeles Area Consumer Price Index (CPI) (76%), the County of Orange landfill tipping fee (16%), and the local average price of diesel fuel in April (8%). Landfill fees remained constant at $22.00 per ton. The March 2004 CPI shows an increase of 1.75% and diesel fuel costs have an increase of 23.34%. In accordance with the established formula, the amount of increase due the contractor effective July 1, 2004, totals 3.20% or $.42 per residential unit (Attachment 2). Rainbow submitted an addendum to Attachment 2, which states that the company is pleased to offer a 50% reduction in this rate increase to residential customers due to economic conditions within the community. If Council accepts this reduction for its residents who receive curbside can service, the increase will drop from $.42 to $.21. The table below shows the distribution of the new rate ($17.65) assuming a $.21 increase: 2003 2004 Rate Rate Rainbow Disposal to Rainbow) $13.04 $13.25 Materials Recovery Facility to Rainbow) $ 3'00 $ 3.00 AB939 Education Fund (to City) $ `0 15 $ 0.15 City Administrative Costs (to City) $ 125. $ 1.25 TOTAL $1°7`.44 $17.65 The proposed rate increases the residential refuse charge a total of $0.21 per month. The daily refuse rate shown on the municipal services bill will be $0.5803. The revised rate would become effective for service received beginning July 1, 2004. G:\R C A\2004\04-046 May 17 Flynn (Adopt 04-05 Residential Refuse Rate).doc -2- 5/3/2004 4:08 PM REQUEST FOR COUNCIL ACTION MEETING DATE: May 17, 2004 DEPARTMENT ID NUMBER:PW-04-046 Rates for commercial bin service, drop-off, and rent-a-bins were increased by the formula of 3.20% as detailed in the Franchise Agreement. The July 1, 2004, Commercial Refuse Rate is presented as an informational item (Attachment 3). These rates also reflect the increase from a 4% to a 5% franchise fee on commercial accounts, per the Franchise Agreement amended on June 2, 2003. This document will become the new Exhibit A of the Refuse Collection and Disposal Services Franchise Agreement. Commercial fees are collected directly by Rainbow Disposal and are not under the purview of the City. Downtown Can Service: Rainbow Disposal has offered to continue its donation of collecting the refuse one additional time on scheduled weekend days (Friday-Sunday) for six months. Rainbow will credit the City's "cap" account for one additional route pick up in the downtown area on each Friday, Saturday and Sunday that collection occurs between July 1 and December 31, 2004. Since the City would not need to compensate Rainbow Disposal for the extra weekend collections, the value of that service is $13,630. Pubic Works Commission Action: Not required. Environmental Status: Not applicable. Attachment(s): City Clerk's . . - Number No. Description 1 Resolution No. 2 Refuse Rate Certification Letter of April 26, 2004 and Amendment to that Letter 3 Rainbow Disposal Commercial Service Rates Effective July 1, 2004 4 Proposed Temporary Modified Downtown Collection Schedule RCA Author: Jones/Flynn:jg G:\R C A\2004\04-046 May 17 Flynn(Adopt 04-05 Residential Refuse Rate).doc -3- 5/4/2004 10:08 AM ATTAC H M E N T # 1 RESOLUTION NO. 2004-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES WHEREAS, pursuant to Huntington Beach Municipal Code Section 8.21.030, the City Council shall establish rates for curbside "residential collection service"maintaining "basic level of service" as defined in the Huntington Beach Municipal Code Section 8.21.010 (u) and (b) respectively. NOW,THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. That the monthly rate for curbside residential refuse collection for basic level of service shall be $17.65 for each single-family residence and each dwelling unit within a duplex, a triplex, or a four-plex receiving noncommercial refuse collection service. This equates to a daily rate of$0.5803. This increase shall take effect on all billings dated after July 1, 2004, prorated for service from and after July 1, 2004. 2 That this charge'for residential curbside collection Will e com ine wit t e' residential water;biling process— PASSED PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of May ,2004. Mayor ATTEST: APPROVED AS TO FORM: -s tis7rw7-CitY 1 REVIEWED AND APPROV D: C Attorney _fZ� D AND APPROVED: City Administrator Director of Public Works 04reso/refuse=curb Res. No. 2004-29 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 17th day of May 2004 by the following vote: AYES: Sullivan, Coerper, Hardy, Green, Boardman, Cook, Houchen. NOES: None ABSENT: None ABSTAIN: None _ e ss Is City.Clerk and 'ex=officio Clerk of the City Council of the City of Huntington Beach, California ATTAC H M E N T #2 e d I e A, DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 April 26, 2004 Mr. Dan Villella, CPA Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92647 RE: 2004 Solid Waste Disposal Rate Certification Below is the 2003-2004 Refuse Rate calculation for the City of Huntington Beach residential and commercial solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculated utilized the formula as specified in sections 11 and 12 as amended of the Refuse Collection and Disposal Services Franchise Agreement (the Agreement) between the City of Huntington Beach and Rainbow Disposal Co., Inc. Dump Fuel CPI Fee$/ton Price$/Gal 2001 1.76.6 22.00 1.480 2002 182.2 22.00 1.261 2003 187.6 22.00 1.388 2003 March CPI 188.2 22.00 1.388 2004 191.5 22.00 1.712 Percentage Change CPI Dump Fee Fuel Price 1.75% 0.00% 23.34% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 1007T Resultant Rate Change Factor 1.33% 0.00% 1.87% 3.20% Application of Rate Change Factor to the Residential Rate Existing Percent Rate New Rate Change Change Rate Rate 13.04 3.20% 0.42 13.46 Commercial Refuse Rate Change Percentage 3.20% Existing Percent New Rate Change Rate City Service Cost Cap 734,430.00 3.20% $ 757,933 PRINTED ON RECYCLED PAPER � Mr. Dan Villella City of Huntington Beach April 26, 2004 Page 2of2 Supporting documents including CPI report, fuel bills and commercial rate schedules are attached. The commercial rate schedule reflects the increase franchise fee rate increase from 4% to 5% of gross refuse collection receipts, effective July 1, 2004. CERTIFICATION The foregoing is complete and accurate to the best of my knowledge. Bruce Shuman, CPA Chief Financial Officer Rainbow Disposal Co., Inc. ACKNOWLEDGEMENT Dan Villella, CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER 0 G d � e Z, DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 April 28, 2004 Mr. Dan Villella, CPA Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92647 RE: 2004 Solid Waste Disposal Rate Certification As an addendum to our letter to you dated April 26, 2004, we are providing you with an updated rate increase schedule. Please notice that the new schedule represents a 50% reduction from the formula increase of$.42 per household. We are pleased to offer this reduced rate increase to residential customers. We wish to do so due to economic conditions within the community. The remainder of the components of the certificate letter is unchanged. Existing Refuse Reduced late New Refuse _ Rate Change_ Rate 13.04 $ .21_ S 13.25 If you have any questions, please feel free to call. Sincerely, Bruce Shuman, CPA Chief Financial Officer Cc: Joan Flynn PRINTED ON RECYCLED PAPER ATTAC H M E N T #3 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2004 Standard Service (shown in dollars per month): Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week $ 59.23 $ 96.79 $122.41 Per Week: 2 x Week $ 94.15 $141.22 $187.77 3 x Week $119.30 $180,44 $259,44 4 x Week $133.14 $214.09 $310.75 5 x Week $156.71 $263.98 $396.99 6 x Week $181.83 $304.46 $465.32 *Contractor may make extra charges for special or additional services in accordance with Section 8.21.170 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $246.38 $379.13 $526.10 $632.21 $807.31 $946.69 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 46.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 56.00 per load 40 Yard Drop Off Box* Four (4) days $ 356.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 380.00 per load *Highside (6 tons max.).. **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10-yard DOB's are $15.00 each.) ATTAC H M E N T #4 DOWNTOWN COLLECTION SCHEDULE WITH PROPOSED AMENDMENTS Additional pick-ups to be donated by Rainbow Disposal are noted in parentheses. Month Mon. Tues. Wed. Thurs. Fri. Sat. Sun. July 1 1 1 1 2 (+1) 2 (+1) 2 (+1) August 1 1 1 1 2 (+1) 2 (+l) 2 (+1) September 1 1 1 1 2 (+1) 2 (+1) 2 (+1) October 1 1 2 (+1) 2 (+1) 2 (+l) November 1 1 1 1 (+1) (+1) December 1 1 1 1 (+l) (+1) RCA ROUTING SHEET INITIATING DEPARTMENT: PUBLIC WORKS SUBJECT: Adopt 2004-05 Residential Refuse Rate, and Approve Modifications to the Downtown Refuse Can Collection Schedule COUNCIL MEETING DATE: May 17, 2004 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial I Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR D Administrative Staff Assistant City Administrator (Initial) ( ) ( ) City Administrator Initial ( ) ( ) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: Only)(Below Space For City Clerk's Use RCA Author: Jones/Flynn ( =V� CITY OF HUNTINGTON BEACH MEETING DATE: 1/20/04 DEPARTMENT ID NUMBER: PW04-008 ' T o C Council/Agency Meeting Held: _ 0 Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied y Cler 's Si ature/Gil Q'c Council Meeting Date: 1/20/04 Departm ID Number: PW04-0`4 0 CITY OF HUNTINGTON BEACH J D REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator 1 PREPARED BY: ROBERT F. BEARDSLEY, Director of Public Works f j SUBJECT: MODIFY DOWNTOWN TRASH CAN SERVICE SCHEDULE Statement of Issue, Funding Source, Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: On June 16, 2003, the City Council directed that service to the Downtown Trash Can route be enhanced through December 31, 2003, to include weekend service. The collection service reverts to the previous schedule on January 1, 2004, and will remain as such unless a funding source is identified to continue the higher level of service. Funding Source: Funding of $57,025 for downtown trash collection is currently budgeted in the General Fund Refuse Account#10085103. Recommended Action: Motion to: 1. Accept Rainbow Disposal's offer to donate the cost for one additional trash collection on Friday and Saturday in January and February, and on Friday, Saturday and Sunday in March, April, May and June of 2004. 2. Revert to the pre-existing schedule after the six-month increased weekend collection donated by Rainbow Disposal. Alternative Action(s): Direct staff to identify an alternative funding source ($33,400) for the increased service. Once funds have been identified, revise the collection schedule to reflect the additional pick- ups. i I G:\R C A\2004\04-008 Jan 20 Flynn (Downtown Trash Can Service Schedule) Id 12-30.doc 1/12/200410:07 AM REQUEST FOR COUNCIL ACTION MEETING DATE: 1120/04 DEPARTMENT ID NUMBER: PW04-008 Analysis: The city covers the cost for Rainbow Disposal to collect from 96 public receptacles along Pacific Coast Highway, Main Street and the adjoining streets in the downtown area at a rate of$2 per receptacle. The schedule varies on a monthly basis to account for seasonal attendance in the downtown area. At the June 16, 2003, City Council meeting, an H-Item was submitted and approved with a recommended action to: (1) direct staff to accept Rainbow Disposal's offer of additional weekend downtown area trash collection (June-December); (2) appropriate in the FY 2003/04 operating budget an additional $18,000 for enhanced service and; (3) return to Council in December 2003 to provide recommendations regarding the enhanced service. Since June, the downtown area has benefited from one additional pickup per scheduled day. The Downtown Economic Development Committee indicates that the enhanced trash pick-up schedule has improved the appearance of the downtown area. Rainbow Disposal has offered to continue donating refuse collection one additional time on scheduled weekend days (Friday-Sunday) for six months. The schedule is shown on Attachment 1. The value of that service is $13,250. The cost for the existing downtown refuse collection schedule is budgeted at approximately $57,000. With the City's current budget constraints, staff is recommending that the City accept Rainbow's offer of additional Friday-Sunday collections from January-June 2004, and after June, revert to the schedule for which funds are budgeted. Should the Council choose to approve the schedule recommended by the Downtown Merchants Association through the end of the fiscal year, the additional cost will be $33,400. The downtown collection fee is part of the City's "cap" and any overage is billed to the City's General Fund annually. Funding is not budgeted for this additional service and would have to be appropriated. Public Works Commission Action: Not required. Environmental Status: Not applicable. Attachment(s): City Clerk's Page Number No. Description 1 Downtown Trash Collection Schedules for Fiscal Year 2004 RCA Author: Jones/Flynn G:\R C A\2004\04-008 Jan 20 Flynn (Downtown Trash Can Service Schedule)Id 12-30.doc 1/12/2004 9:52 AM ATTACHMENT #1 Trash Can Collection Schedule in the Downtown Area January-September 2004 CURRENT & PROPOSED COLLECTION SCHEDULE With Rainbow's Donated Friday-Sunday Month Mon. Tues. Wed. Thurs. Fri. Sat. Sun. January 1 1 2 2 1 February 1 1 2 2 1 March 1 1 2 2 2 April 1 1 2 2 2 Easter,,Week, . ` 1 ,. 1: 1 1. 3 3 x_ 3. May 1 1 1 3 3 3 June 1 1 1 1 3 3 3 July 1 1 1 1 2 2 2 August 1 1 1 1 2 2 2 September 1 1 1 1 2 2 2 This schedule represents 297 funded collections ($57,025), and 69 collections funded by Rainbow Disposal ($13,248). 1O PROPOSED COLLECTION SCHEDULE With Rainbow's 1oFriday-Sunday Month Mon. Tues. Wed. Thurs. Fri. Sat. Sun. January 1 1 1 1 2 2 2 February 1 1 1 1 2 2 2 March 1 1 1 1 2 2 2 April 1 1 1 1 2 2 2 Easter Week- 2 2 May 2 2 2 2 3 3 3 June 2 2 2 2 3 3 3 July 2 2 2 2 3 3 3 August 2 2 2 2 3 3 3 September 2 2 2 2 3 3 3 This schedule represents 174 additional unfunded collections ($33,408), and the 69 collections funded by Rainbow Disposal ($13,248). RCA ROUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: Modify Downtown Trash Can Service Schedule COUNCIL MEETING DATE: January 20, 2004 RCA'ATTACHMENTS, STATUS Ordinance (w/exhibits & legislative draft if applicable Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attome ) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attome ) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANAVON' FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR RDED Administrative Staff Assistant City Administrator Initial City Administrator (Initial) City Clerk EXPLANATION FOR RETURN OF ITEM: SpaceOnly) RCA Author: Jones/Flynn (15) June 16, 2003 - Council/Agency Agenda - Page 15 H. City Council/Redevelopment Agency Item H-1a. Submitted by Councilmember Pam Houchen (City Council) Direct Staff to: (1) Accept Rainbow Disposal's Offer of Additional Downtown Area Trash Collection and Restoration of Sidewalk Cleaning; (2) Revise Rainbow Disposal Agreement to Reflect Changes in the Collection Schedule and (3) Return to Council in December 2003 to Review and Report on the Recommendations - Authorize Appropriation of Funds (600.45) Communication from Councilmember Pam Houchen transmitting the following Statement of Issue: Since 1998 the downtown trash collection schedule has remained unchanged. During those five years, both the numbers of residents and visitors to Huntington Beach have increased substantially. With the completion of major commercial/resort venues, along with the emphasis on making Huntington Beach a destination resort, we will need to accommodate thousands of additional people shopping and strolling in the City's burgeoning downtown area. An inevitable byproduct of this activity is the additional trash that will be generated and disposed of in one of the 96 public receptacles along Pacific Coast Highway, Main Street and the adjoining streets in the downtown area. Rainbow Disposal has served the city of Huntington Beach since the mid 1950's. The company's involvement with the community is long-standing and the firm is very aware of our budgetary constraints. As a concerned local corporation, Rainbow has offered to contribute toward alleviating the blight that under-serviced collection can cause. They have offered to credit the City's "cap"account for one additional receptacle pick up in the downtown area on each Friday, Saturday and Sunday that collection occurs between now and December 31, 2003. Since the City will not need to compensate Rainbow Disposal for the extra weekend collections, the value of that service will be approximately $15,000. I propose that the City, supplement Rainbow's increased service by adding one collection on each of the weekdays that are scheduled for the remainder of 2003. That would equate to an additional cost to the City of approximately $18,000. This increased service would be reviewed at the end of September. The downtown collection fee is part of the City's "cap" and any overage is billed to the City annually in February; therefore, compensation to Rainbow for the extra weekday collections will be due in February 2004. In addition to the trash accumulation downtown, the sidewalks are not being pressure washed with enough frequency. As a result of NPDES requirements, the City's contractual costs have increased because it must provide a service that emits "zero discharge" of water to the storm drain system. This more costly process has forced the City to cut back on cleaning frequency in the peak season months from twice monthly to monthly to stay within budget. To restore the badly-needed service level to twice monthly for the peak months of June, July, August and September this year, it will require the appropriation of$6,000 of General Fund money to the Park, Tree and Landscape operating budget. (Continued on the Next Page) (16) June 16, 2003 - Council/Agency Agenda - Page 16 Recommended Action: Motion to: 1. Accept Rainbow Disposal's offer to credit the City for one additional trash collection on Friday, Saturday and Sunday of June, July, August, September, and October; and Friday and Saturday in November and December, 2003; and 2. Direct staff to appropriate in the FY 2003/04 operating budget, $18,000 for enhanced weekday (Monday through Thursday) downtown trash collection services between June and December 2003. A review of this additional service would occur by the end of September 2003; and 3. Direct staff to contact Rainbow Disposal and revise the collection schedule to reflect the additional collections and 4. Direct staff to appropriate $6,000 in the current fiscal year budget for the restoration of sidewalk cleaning frequency in the downtown area to twice monthly in June, July, August and September 2003; and 5. Direct staff to review and report to the City Council in December 2003 on the recommended downtown area trash collection schedule for 2004. Councilmember Pam Houchen reported re: NPDES (National Pollutant Discharge Elimination System) permitting requirements. Public Works Director Beardsley, Deputy Public Works Director Paul Emery and Economic Development Director David Biggs reported on potential BID(Business Improvement District) for the Downtown. Approved 6-0-1 (Coerper Absent) J, CITY OF HUNTINGTON BEACH HUNTINGTONBEACH CITY COUNCIL MEMO To: Honorable Mayor and City Council Members From: Pam Houchen, City Council Member Date: June 9, 2003 Subject: "H"ITEM FOR JUNE 16, 2003 CITY COUNCIL MEETING— DOWNTOWN TRASH COLLECTION AND SIDEWALK CLEANING STATEMENT OF ISSUE: Since 1998 the downtown trash collection schedule has remained unchanged. During those five years, both the numbers of residents and visitors to Huntington Beach have increased substantially. .With the completion of major commercial/resort venues, along with the emphasis on making Huntington Beach a destination resort, we will need to accommodate thousands of additional people shopping and strolling in the City's burgeoning downtown area. An inevitable byproduct of this activity is the additional trash that will be generated and disposed of in one of the 96 public receptacles along Pacific Coast Highway, Main Street and the adjoining streets in the downtown area. Rainbow Disposal has served the city of Huntington Beach since the mid 1950's. The company's involvement with the community is long-standing and the firm is very aware of our budgetary constraints. As a concerned local corporation, Rainbow has offered to contribute toward alleviating the blight that under-serviced collection can cause. They have offered to credit the City's "cap" account for one additional receptacle pick up in the downtown area on each Friday, Saturday and Sunday that collection occurs between now and December 31, 2003. Since the City will not need to compensate Rainbow Disposal for the extra weekend collections, the value of that service will be approximately $15,000. 1 propose that the City, supplement Rainbow's increased service by adding one collection on each of the weekdays that are scheduled for the remainder of 2003. That would equate to an additional cost to the City of approximately $18,000. This increased service would be reviewed at the end of September. The downtown collection fee is part of the City's "cap" and any overage is billed to the City annually in February; therefore, compensation to Rainbow for the extra weekday collections will be due in February 2004. In addition to the trash accumulation downtown, the sidewalks are not being pressure washed with enough frequency. As a result of NPDES requirements, the City's contractual costs have increased because it must provide a service that emits "zero discharge" of water to the storm drain system. This more costly process has forced the City to cut back on cleaning frequency in the peak season months from twice monthly to monthly to stay within budget. To restore the badly-needed service level to twice monthly for the peak months of June, July, August a nd S eptember t his y ear, i t w ill r equire the a ppropriation o f$6,000 o f General F and money to the Park, Tree and Landscape operating budget. I� RECOMMENDED ACTION: 1. Accept Rainbow Disposal's offer to credit the City for one additional trash collection on Friday, Saturday and Sunday of June, July, August, September, and October; and Friday and Saturday in November and December, 2003. 2. Direct staff to appropriate in the FY 2003/04 operating budget, $18,000 for enhanced weekday (Monday through Thursday) downtown trash collection services between June and December 2003. A review of this additional service would occur by the end of September 2003. 3. Direct staff to contact Rainbow Disposal and revise the collection schedule to reflect the additional collections. 4. Direct staff to appropriate $6,000 in the current fiscal year budget for the restoration of sidewalk cleaning frequency in the downtown area to twice monthly in June, July, August and September 2003. 5. Direct staff to review and report to the City Council in December 2003 on the recommended downtown area trash collection schedule for 2004. RFB:PE:JF:jm c: Ray Silver, City Administrator Bill Workman, Assistant City Administrator Connie Brockway, City Clerk Executive Team James L. Jones, Maintenance Operations Manager 2 Council/Agency Meeting Held: a Deferred/Continued to: � Approved / nditionally Approved ❑ Denied City Clerk's Si nature Council Meeting Date: June 2, 2003 Department ID Number: PW 03-029 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION w ALL' SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator d� _ REPARED BY: ROBERT F. BEARDSLEY, Director of Public Works C/ P ` 7cr- SUBJECT: Adopt 2003-04 Residential Refuse Rate and Approve Amendment to Refuse Agreement with Rainbow Disposal /L/o, �2_oo3 -/-/0 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The Refuse .Collection and Disposal Services Franchise Agreement with Rainbow Disposal Company, Inc. (Rainbow) requires an annual review of residential rates. Adjustments to the residential curbside refuse rates are made in accordance with this review. Minor modifications to the franchise agreement will be made to allow for timelier customer notification. An increase to the franchise fee on commercial accounts is also included in the amendment. Funding Source: An increase of $0.39 per residential unit will be paid to Rainbow. The proposed rate will also add $0.68 to the administrative component of the refuse fee that is transferred to the General Fund. The additional administrative charges total approximately $380,000 annually. A one percent increase in the franchise fee on commercial accounts will add approximately $124,000 annually to the General Fund. -fa ,Okc") ,�,e �� y�. o� X • 4SF �.�ti�� a��- Recommended Action:/i Motion to t-u 1. Adopt Resolution No.23- a resolution of the City Council of the City of Huntington Beach establishing residential curbside refuse collection rates. 2. Approve and authorize the Mayor and City Clerk to execute the Amendment to the Refuse Collection and Disposal Services Franchise Agreement between the City of Huntington Beach and the Rainbow Disposal and Rainbow Transfer Recycling Companies Alternative Action(s): 1. Deny recommended action #1. The City still continues to be contractually obligated to forward the increased dollar amount ($.39 per residential unit) to Rainbow. --lo2— REQUEST FOR COUNCIL ACTION MEETING DATE: June 2, 2003 DEPARTMENT ID NUMBER: PW 03-029 2. Deny all or part of recommended action #2 and direct staff's action Analysis: Refuse Rate: The existing refuse services agreement with Rainbow calls for an annual review of the residential service rate. A change in compensation for each contract year (July 1 to June 30) is determined by a formula with three variables. The variables and their weighting factor (noted in parenthesis) are the Los Angeles Area Consumer Price Index (CPI) (76%), the County of Orange landfill tipping fee (16%), and the local average price of diesel fuel in April (8%). Landfill fees remained constant at $22.00 per ton. The April 2003 CPI shows an increase of 2.96% and diesel fuel costs have an increase of 10.08%. In accordance with the established formula, the amount of increase due the contractor effective July 1, 2003, totals 3.06% or $.39 per residential unit (Attachment 2). The proposed monthly rate of$17.90 will be disbursed in the following manner: Current Proposed Rainbow Disposal to Rainbow ��.$:1265 $13.04 Materials Recovery Facility to Rainbow $:,3,00,' $ 3.00 AB939 Education Fund to City) $ 0.15 $ 0.15 City Administrative Costs (to City) $ ._1Q3 $ 1.71 TOTAL "83; $17.90 The proposed rate increases the residential refuse charge a total of $1.07 per month. The daily refuse rate shown on the municipal services bill will be $0.5885. The revised rate would become effective for service received after June 30, 2003. The City Administrative Costs component is to recover the costs of processing payments, the required accounting functions, and citywide general overhead for the refuse program. The current cost allocation study being performed in conjunction with the citywide fees study indicates that the appropriate administrative charges to the refuse program would be 19.4% of the operating budget or $1,875,200. The current transfer to the General Fund is $348,150. The recommended increase of $0.68 is twenty-five percent of the amount required to fully fund the administrative cost component. Full cost recovery would be $3.75 per residential unit. The administrative charge would be increased by approximately $0.68 per year over the next four years to gradually align the fee with the actual cost to provide the refuse program to residential customers. Rates for commercial bin service and drop-off and rent-a-bins were also increased by the formula of 3.06% as detailed in the Franchise Agreement. The July 1, 2003, Commercial Refuse Rate is presented as an informational item. (Attachment 3) These rates assume the increase from a 3% to a 4% franchise fee on commercial accounts, as presented in the GAR C A\2003\03-029 June 2 Flynn(03-04 Refuse Rate).doc-2- 5/20/2003 3:49 PM REQUEST FOR COUNCIL ACTION MEETING DATE: June 2, 2003 DEPARTMENT ID NUMBER: PW 03-029 Amendment to the Franchise Agreement. This document will become the new Exhibit A of the Refuse Collection and Disposal Services Franchise Agreement. Commercial fees are collected directly by Rainbow Disposal and are not under the purview of the City. CPI Date Adiustment: The Franchise Agreement specifies that the changes in compensation to the hauler shall be determined by a formula that includes the percentage of increase in the Los Angeles-Riverside-Orange County, California All Urban Consumer Price Index (CPI) from April-to-April of the preceding 12 months. In accordance with Section 11-B of the Agreement, the new refuse rate takes effect July 1. As the April CPI is not available until May 15th, the adjusted rate cannot be presented to the Council prior to the first meeting in June. The current schedule allows less than a 30-day rate change' notification to residential and commercial customers. Moving the CPI date ahead one month and setting . the CPI time frame from March-to-March, will allow more timely notification to our customers. Franchise Fee: The Franchise Fee was delineated in the original Franchise Agreement entered into by the City of Huntington Beach and Rainbow in 1990. At that time the contractor was to pay the city a franchise fee of one percent (1%) on the company's gross receipts from commercial service. The fees increased to two percent (2%) in 1992, and to three percent (3%) in 1993. The franchise fees have remained static for the last ten years. An Orange County survey of Solid Waste Rates and Services as of November 2002 prepared by Hilton, Farnkopf & Hobson indicates that the three percent franchise fee collected by Huntington Beach is low in comparison to other local cities. (Attachment 5) The amendment to the franchise agreement raises the commercial franchise fee to four percent (4%) as of July 1, 2003, and to five percent (5%) as of July 2004. Currently, the franchise fees contribute approximately $385,000 to the city's General Fund annually. Each percentage increase will bring in an additional $132,000 annually. Pubic Works Commission Action: Not required. Environmental Status: Not applicable. Attachment(s): City Clerk's Page Number No. Description 1 Resolution No. ` X0 2 Refuse Rate Certification Letter of May 16, 2003 3 Rainbow Disposal Commercial Service Rates Effective July 1, 2003 4 Amendment to the Rainbow Franchise Agreement 5 Surve of Franchise Fees charged by Orange County Cities, Nov 2002 6 Powerpoint Presentation GAR C A\2003\03-029 June 2 Flynn(03-04 Refuse Rate).doc-3- 5/20/2003 3:47 PM (6) June 2, 2003 - Council/Agency Agenda - Page 6 F. Administrative Items F-1. (City Council) Approve the License Agreement between the City and U. S. Bank National Association ND for Implementation of the Surf City Huntington Beach Credit Card Affinity Program and Trademark (to Provide Fund Revenue for Parks and Recreation, Library, Cultural Activities and Other Community Services) (600.10) Communication from the City Treasurer; the city's Special Projects Manager, and the Economic Development Director requesting Council approval of an agreement with U. S. Bank National Association to implement the Surf City Affinity Credit Card Program to provide revenue to fund city services for parks and recreation, libraries, cultural activities and other community programs. Recommended Action: Motion to: Approve the Credit Card Affinity Program and Trademark License Agreement with U. S. Bank National Association ND for the implementation of the Surf City Huntington Beach Affinity Credit Card Program; authorize the Mayor and City Clerk to sign the agreement, and forward to U. S. Bank National Association ND for execution. Economic Development Director David Biggs presented PowerPoint report included in the agenda packet. Approved 7-0 as amended(adding language to the recommended action re: marketing) by Late Communication announced by the Assistant City Clerk. (Goal is to return in July 2003 with agreement.) F-2. (City Council) Adopt Resolution No. 2003-40 Establishing Residential Curbside Refuse Collection Rates and Approve Amendment(No. 1) to the Rainbow Disposal and Rainbow Transfer and Recycling Franchise Agreement (Increases Fees on Commercial Accounts (600.45) Communication from the Public Works Director informing Council that the Refuse Collection and Disposal Services Franchise Agreement with Rainbow Disposal Company, Inc. requires an annual review of residential rates. Minor modifications to the franchise agreement will be made to allow for timelier customer notification. An increase to the franchise fee on commercial accounts is also included in the amendment. Recommended Action: Motion to: 1. Adopt Resolution No. 2003-40 — "A Resolution of the City Council of the City of Huntington Beach Establishing Residential Curbside Refuse Collection Rates;" and 2. Approve and authorize the Mayor and City Clerk to execute the Amendment to Refuse Collection and Disposal Services Franchise Agreement between the City of Huntington Beach and the Rainbow Disposal and Rainbow Transfer Recycling Companies. Public Works Director Robert F. Beardsley presented PowerPoint report included in the agenda packet; which is amended on Page F-2.25 by Late Communication, as announced by the Assistant City Clerk. Councilmember Sullivan submitted Late Communication titled "City Rainbow Administrative Costs Using CPI." Administrative Services Director reported in response. Adopted 7-0 Resolution No. 2003-40 as amended in item #1 to show revised figure of$17.44(which also adjusts the daily rate.) .JJ � CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION TO: Connie Brockway, City Clerk FROM: Linda Daily, Principal Analyst, Public Works SUBJECT: Late Communication Item F-2 DATE: June 2, 2003 A revision has been made to slide No. 7 in tonight's refuse rate presentation. The corrected slide will be shown. The discrepancy was not discovered in time to provide for your normal late communications. Corrected copies have been distributed to the City Council. Attached are copies for the public, and your records. Thank you for.your assistance. Cc: Robert F. Beardsley, Director of Public Works RECEIVED FROM P4"C -'Z6& " AND MADE A PART OF THE RC-�OF}D AT o 3 COUNCIL MEETING OF OFFICE OF THffCITY CLERK CONN IE BROCKWAY,CITY CLERK STEM#, memo to City Clerk--refuse rate late communication Refuse Rates 2003 Fihancial. Impact: of Prop osedFranchis6' Fee Increase commercial Refuse Service p ­. b Pick Up Schedule 3% 4% 5% *Iw-Yd .1. x Wk. i56.43_ :.+$0.52 +$1.04 2-Yd 1 x Wk $92 24 +$085 +$1.70 -Yd 1 x:Wk �$116 59 +$1.09 +$11 3 7 L 7 w t x; . ::OC Citi6s with5Yyh : 4� Commercial Franchise Fees 0 Brea 19 Buena Park�: 13 Fountain Valley u 160/1 0 Fullerton :- - 0. il Huntingt on Beach Q f`i"14% 11 Irvine. ill La:Habra 0 La Palma. 0 Laguna Beach 13 Laguna Niguel 100/0 0 Lake F x Los Alarnitos 80/O7 mission Vleja NeBeach P1 C3 San Juan Capistrano C3 San Clemente 40 0 Santa Ana 13 Seal Beach. 0 Stanton 21)/0 ClTustiW. Ol 0 Villa Park'...' M Wesbirdnster 0 Yorba Linda Huntington Beach F-2 .25 (Revised) 4 Refuse Rates 2003 Financial Impact of Proposed Franchise Fee Increase Commercial Refuse Service Pick Up Schedule 3% 4% 5% 1-Yd 1 x Wk $56.43 +$0.52 +$1.04 2-Yd 1 x Wk $92.24 +$0.85 +$1.70 ;,. 3-Yd 1 x Wk $116.59 +$1.09 +$2.17. X 7 OC Cities with Commercial Franchise Fees »s� 0 Brea B Buena Park El Fountain Valley ■Fullerton ' pr. ®Huntington Beach 14% 13 Irvine N La Habra v 120/O La Palma x 0 Laguna Beach 10°/O i ❑Laguna Niguel _; ■Lake Forest !1 Los Alamitos 80/1 ®Mission Vieja ■Newport Beach o-. 60/0 Ei Placentia 'k 0 San 7uan Capistrano ❑San Clemente 4% 3 ❑Santa Ana Y' ❑Seal Beach 2% - 'x 17 Stanton O Tustin O p/°O ` Villa Park ®Westminster 13 Yorba Linda Huntington Beach 8 Y: F-2 .25 (Revised) ATTACHMENT # 1 RESOLUTION NO. 2003-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES WHEREAS, pursuant to Huntington Beach Municipal Code Section 8.21.030, the City Council shall establish rates for curbside "residential collection service"maintaining "basic level of service" as defined in the Huntington Beach Municipal Code Section 8.21.010 (u) and (b) respectively, NOW, THEREFORE,the City Council of the City of Huntington Beach does hereby resolve as follows: 1. That the monthly rate for curbside residential refuse collection for basic level of service shall be $17.44 for each single-family residence and each dwelling unit within a duplex, a triplex, or a four-plex receiving noncommercial refuse collection service. This equates to a daily rate of$0.5734. This increase shall take effect on all billings dated after July 1, 2003, prorated for service from and after July 1, 2003. 2. That this charge forxesidential curbside collection will be combined with the residential water billing process. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2nd day of .Tune , 2003. ATTEST: City Clerk Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: City A inistrator ity Atto ey (J� I 03 ITIA D AND APP ED: Direc o of Public Works 03reso/curb fee/6/10/03 Res. No. 2003-40 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 2nd day of June, 2003 by the following vote: AYES: Sullivan, Coerper, Green, Boardman, Cook, Houchen, Hardy NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 532, 4, RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES WHEREAS, pursuant to Huntington Beach Municipal Code Section 8.21.030, the City Council shall establish rates for curbside "residential collection service" maintaining"basic level of service" as defined in the Huntington Beach Municipal Code Section 8.21.010 (u) and (b) respectively, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: rl uY 1. That the monthly rate for curbside residential refuse collection for basic level of service shall be $17 0 for each since-family residence and each dwelling unit within a duplex, d triplex, or a four-plex recei-,;ing noncommercial refuse collection service. This equates to a daily rate of$0�5. This increase shall take effect on all billings dated after July 1, 2003, prorated for service from and after July 1, 2003. -734 2. That this charge for residential curbside collection will be combined with the residential water billing process. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2003. ATTEST: City Clerk Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: City Admi&strator ty Attolney ,c 7 D;ITI ED AND APPROVED: Director of Public Works S 03reso/curb fee/5/19/03 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES WHEREAS, pursuant to Huntington Beach Municipal Code Section 8.21ss 0, the City Council shall establish rates for curbside "residential collection service"maint i ing "basic level of service" as defined in the Huntington Beach Municipal Code Section 8.2 .010 (u) and (b) respectively, NOW, THEREFORE, the City Council of the City of Hunti to Beach does hereby resolve as follows: 1. That the monthly rate for curbside residential fuse collection for basic level of service shall be $17.90 for each single-fam' residence and each dwelling unit within a duplex, a triplex, or a four-plex r ceiving noncommercial refuse collection service. This equates to a da' y rate of$0.5885. This increase shall take effect on all billings dated after July , 2003, prorated for service from.and after July 1, 2003. 2. That this charge for residential urbside collection will be combined with the residential water billing proc s. PASSED AND ADOPTED by t City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2003. ATTEST: City Clerk Mayor REVIEWED AND APPRtZVED: APPROVED AS TO FORM: City Adrrgistrator ty Attolney INITI. ED AND OVED: Director of Public Works 03reso/curb fee/5/19/03 ATTACHMENT #2 e a - e Z, DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 May 16, 2003 Mr. Dan Villella, CPA Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92647 RE: 2003 Solid Waste Disposal Rate Certification Below is the 2002-2003 Refuse Rate calculation for the City of Huntington Beach residential and commercial solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculated utilized the formula as specified in sections 11 and 12 of the Refuse Collection and Disposal Services Franchise Agreement (the Agreement) between the City of Huntington Beach and Rainbow Disposal Co., Inc. Data Items Dump Fuel CPI Fee$/ton Price$/Gal 1996 157.7 27.00 1.130 1997 159.9 22.00 1.334 1998 161.8 22.00 1.051 1999 166.6 22.00 1.172 2000 170.6 22.00 1.415 2001 176.6 22.00 1.480 2002 182.2 22.00 1.261 2003 187.6 22.00 1.388 Percentage Change CPI Dump Fee Fuel Price 2.96% 0.00% 10.08% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 100% Resultant Rate Change Factor 2.25% 0.00% 0.81% 3.06% Application of Rate Change Factor to the Residential Rate Existing Percent Rate New Rate Change Change Rate Rate 12.65 3.06% 0.39 13.04 Commercial Refuse Rate Change Percentage 3.06% PRINTED ON RECYCLED PAPER Mr. Dan Villella, CPA City of Huntington Beach May 16, 2003 Page 2 of 2 Supporting documents including CPI report, fuel bills and commercial rate schedules are attached. CERTIFICATION The foregoing is com lete and accurate to the best of my knowledge. Bruce Shuman, CPA Chief Financial Officer Rainbow Disposal Co., Inc. ACKNOWLEDGEMENT Dan Villella, CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER LS ATTACHMENT #3 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES (Assumes 4% Franchise Fee) CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2003 Standard Service (shown in dollars per month): * Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week $ 56.95 $ 93.09 $117.68 Per Week: 2 x Week $ 90.57 $135.91 $180.64 3 x Week $114,83 $173,78 $249,83 4 x Week $128.22 $206.28 $299.46 5 x Week $150.95 $254.36 $382.53 6 x Week $175.17 $293.42 $448.41 *Contractor may make extra charges for special or additional services in accordance with Section 8.21.170 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $234.19 $360.38 $500.07 $600.94 $767.37 $899.87 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 45.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 55.00 per load 40 Yard Drop Off Box* Four (4) days $ 349.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 374.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10-yard DOB's are $15.00 each.) ATTACHMENT #4 AMENDMENT TO REFUSE COLLECTION AND DISPOSAL SERVICES FRANCHISE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE RAINBOW DISPOSAL AND RAINBOW TRANSFER RECYCLING COMPANIES THIS AMENDMENT is made and entered into the .I ' day of 2003, by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "CITY," and the RAINBOW DISPOSAL COMPANY, INC.,joined by RAINBOW TRANSFER AND RECYCLING, INC., both California corporations, hereinafter collectively referred to as "CONTRACTOR." WHEREAS, CITY and CONTRACTOR are parties to that certain agreement, dated February 5, 1990, entitled"Refuse Collection and Disposal Services Franchise Agreement By and Between the City of Huntington Beach and the Rainbow Disposal and Rainbow Transfer and Recycling Companies,"which agreement shall hereinafter be referred to as the "Original Agreement," and CITY and CONTRACTOR wish to amend the Original Agreement to change the time period for the CPI report which is included as part of the rate review calculation, NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows: I. AMENDMENT OF SECTION 11 OF THE ORIGINAL AGREEMENT ENTITLED "COMPENSATION—RESIDENTIAL" Section I I of the Original Agreement, entitled "Compensation—Residential," is hereby amended to read as follows: 1 03agree/Rainbow Amendmendpda/jn/5/15/2003 RLS 2003-021 I,2003-0246 11. COMPENSATION—RESIDENTIAL A. CITY shall pay to CONTRACTOR for services provided under the terms of this AGREEMENT, the sum of$8.45 per month for each UNIT OF SERVICE rendered in CITY from the period beginning February 1, 1990, until June 30, 1990; and the sum of$9.52 per month for same from July 1, 1990, until June 30, 1991. However, should the landfill tipping fee increase more than $1.00 per ton during the one-year period after June 30, 1990, then the "tipping fee"portion of the formula described below shall be applied to the amount in excess of$1.00 per ton. B. Changes in compensation for each subsequent year will be based on the formula provided below and shall take effect on July 1 st of each succeeding year beginning on July 1, 1991. A change in compensation will be determined by the three factors in the following formula: 1. The percentage of increase in the Los Angeles- Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area from March to March of the preceding twelve (12)months. This factor shall constitute seventy-six percent(76%) of a rate adjustment. 2. The County of Orange landfill tipping fees. This factor shall constitute sixteen percent (16%) of a rate adjustment, and be 2 03agree/Rainbow Amendment/pda/jn/5/15/2003 RLS 2003-0211,2003-0246 based upon the tipping fee adopted by said County for the subsequent fiscal year. 3. The average per gallon price of diesel fuel as paid by CONTRACTOR during the March to March time frame noted above. This factor shall constitute eight percent (8%) of a rate adjustment. An example of this formula is provided on the attached Exhibit B. No more than one negotiated rate change shall be made in any twelve (12) month period. However, either CITY or CONTRACTOR may propose modification of an established rate in order to assure the overall fairness of the rate structure to both CITY and CONTRACTOR. C. In the event CONTRACTOR becomes obligated in the performance of this AGREEMENT to pay any fees or charges not presently required, such as those imposed by toll roads, for the transit of REFUSE to landfills; or if CONTRACTOR is required to travel additional distances to an approved landfill site due to the closing of an existing facility; or if the County of Orange raises the landfill tipping fee more than once during a year, then the parties agreed to negotiate in good faith for an adjustment in the existing monthly unit rate prior to the implementation of such charges. 3 03agree/Rainbow Amendment/pda/jn/5/15/2003 RLS 2003-0211,2003-0246 2. AMENDMENT OF SECTION 12 OF THE ORIGINAL AGREEMENT ENTITLED "COMPENSATION -- COMMERCIAL" Section 12 of the Original Agreement, entitled "Compensation— Commercial," is hereby amended to read as follows: 12. COMPENSATION—COMMERCIAL A. CONTRACTOR shall establish and publish a schedule of rates for all COMMERCIAL SERVICE accounts based on frequency of collection per week and size of container. Said schedule shall be shown as Exhibit A of this AGREEMENT and shall become effective on February 1, 1990. B. CONTRACTOR shall be exclusively responsible for making contracts for COMMERCIAL SERVICE with CUSTOMERS within CITY. All charges will be billed to and collected from each CUSTOMER by CONTRACTOR. C. Beginning July 1, 1990, and continuing for the life of this AGREEMENT, changes in compensation for COMMERCIAL SERVICE for each subsequent year will be based on the formula provided below and shall take effect on July 1 st of each succeeding year. A change in compensation will be determined by three factors in the following formula: 1. The percentage of increase in the Los Angeles- Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area from March to March of the 4 03agree/Rainbow Amen dment/pda/jn/5/15/2003 RLS 2003-0211,2003-0246 preceding twelve (12)months. This factor shall constitute seventy-six percent (76%) of a rate adjustment. 2. The County of Orange landfill tipping fees. This factor shall constitute sixteen percent(16%) of a rate adjustment, and be based upon the tipping fee adopted by said County for the subsequent fiscal year. 3. The average per gallon price of diesel fuel as paid by CONTRACTOR during the March to March time frame noted above. This factor shall constitute eight percent (8%) of a rate adjustment. An example of this formula is provided on the attached Exhibit B. No more than one negotiated rate change shall be made in any twelve (12) month period. However, either CITY or CONTRACTOR may propose modification of an established rate in order to assure the overall fairness of the rate structure to both CITY and CONTRACTOR. 3. AMENDMENT OF SECTION 13 OF THE ORIGINAL AGREEMENT ENTITLED "COMMERCIAL SERVICE FRANCHISE FEE" Section 13 of the Original Agreement, entitled "Commercial Service Franchise Fee" is hereby amended to read as follows: 13. COMMERCIAL SERVICE FRANCHISE FEE A. Beginning on July 1, 1991, CONTRACTOR shall pay CITY a franchise fee of one percent (I%) of his paid gross receipts 5 03agree/Rainbow Amendmendpda/jn/5/15/2003 RLS 2003-0211,2003-0246 from COMMERCIAL SERVICE. Said fee shall increase to two percent (2%) of same on July 1, 1992, and to three percent(3%) on July 1, 1993, and to four percent(4%) on July 1, 2003, and to five percent(5%) on July 1, 2004. However, in all instances, the fee shall be added to the rate schedule only after the compensation formula has been applied. B.. Said payment shall be made on a monthly basis and be received by CITY no later than fifteen(15) days after the end of each calendar month in which CONTRACTOR'S invoices were issued. The first payment due under this AGREEMENT, for receipts of July 1991, shall be payable on September 15, 1991. Any late payments shall be assessed in accordance with Chapter 3.48 of the Huntington Beach Municipal Code. 4. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. [SIGNATURES ON NEXT PAGE] 6 03agree/Rainbow Amendment/pda/jn/5/15/2003 RLS 2003-0211,2003-0246 IN WITNESS WHEREOF,the parties hereto have caused this agreement to be executed by their authorized officers on the date first above written. RAINBOW DISPOSAL COMPANY, INC., CITY OF HUNTINGTON BEACH, a California corporation a municipal corporation of the State of California r By: Mavor print name ITS: circle one Chairman/President/Vice President APPROVED AS TO FORM: AND City t rney �Z py By: AL Iry OE S k.' n a>J AND APPR D: print name _ r ITS: (circle one) Secret hief Financial Offi Cc /Asst. Secretary—Treasurer Director of Public Works RAINBOW TRANSFER AND REVIEWED AND APPROVED: RECYCLING, INC., a California corporation o� e-fity Administrator By: &-U/� print name ITS: (circle one)Chairman/President/Vice President AN By: 6 rvCIF S h VP"A-J print name ITS: (circle one) Secretary Chief Financial Officer sst. Secretary—Treasurer 7 03agree/Rainbow Amen dment/pda/jn/5/15/2003 RLS 2003-021 I,2003-0246 ATTACHMENT #5 2002 Franchise Fee Rates Charged by Orange County Cities Percentage'Commercial City Name Franchise Fee Anaheim 0 Brea 10 Buena Park 5 Costa Mesa N/A Cypress 10 Dana Point 5 Fountain Valley 5 Fullerton 5 Garden Grove 0 Hrtin tor,BeacH;' 3 Irvine 5 La Habra 7 La Palma 5 Laguna Beach 10 Laguna Hills 0 Laguna Niguel 5 Laguna Woods N/A Lake Forest 5 Los Alamitos 8 Mission Viejo 5 Newport Beach 16 Orange 0 Placentia 12.3 Rancho Santa Mar uerita 0 San Juan Capistrano 5 Sam Clemente 5 Santa Ana 10 Seal Beach 7 Stanton 5 Tustin 2 Villa Park 5 Westminster 7 Yorba Linda 5 An Orange County survey of Solid Waste Rates and Services effective as of November 2002, prepared by Hilton Farnkopf&Hobson �. r f, 3( y _.,,�,., :a'°::nx;�.� •r _,,,,o_ A:;o—,�.:r,%q 3.3i ,�»,i` � arz4a•L z� ............ AN rVA City of Huntington Beach Residential Refuse Rate And KAI Franchise Agreement Amendment 'EM 4M, j . ............. ................ Overview of .Residential - R e efuse� Services • Unlimited weekly service or.house orefuse .household ,-5112,105-'4. e No sorting required by residents E R d for recycling:: at t e Materials All refuse sorted e V4 Recovery Facility�.. • Ability .to plate bundled d trimmings at curbside without confining I&a..can:,: �ur of Id U 0 Isg, tg T.Wo special. pitk .dps' ---a:puJKy household Nei ON item per residence, per year: 34 &,&,:4w- gg ONION W pia Residential Refuse Refuse C 0ntrad Wmg The City of Huntington Beach entered into the current Fta'n chiso Agreement with Rainbow Disposal Company, Inc. in 199 0 6, 9,-'A • Rates are adjusted annually by formula 6'. 1*,Itr 'vp R-ga,-- Consumer Price lhd6x (CPI). 76% F- g :.Diesel f6e- cost 16W s ��-Landfill tipping,fees 8% l arch CPI AO:.allow Vl ange: rom April i B 30 day nbtite,to customers. ------------- V U t Changes : P j6sed,.':Rate M41 I g j WO Per established formuIa monthly increase ofI vmli N 0-39bet tesidential ,unit for r collection-* $services Administrative,::cost adj'ustment of $0.68 per residential repeesents 25 o of allow ble i'1d 0ri increase according to`'cost aiiocation study 'M Administrativi:e costs ts have not increased N since 199 6. 2 ;>vrx � �A "�`2 ,� MIR w Monthly Residential 345 " . Refuse Rate Current Proposed IN Collection (Rainbow) $12.65 $13:04k Materials Recovery . 4 . . Facility (Rainbow) 3:00 3.00 0,1 Recycling education (Gty) 0 15 0 15 City administration.(city) 1.03 1.71 0 Total $16.83 $17 90 ;.<�:+�.:.•::�`z`��:;,,_..,�..,�7:..:vw.,§�'f_.:.,.�.'k.,':.. x1e.= v�.rk.;Er„;.e�'.�"�%NMz�;=i....m.4,�: '.S°.T�r.�: ..:.r.._.s, d,-wa;:k>?.s.<... �=�..... �,,3:+_ Commercial Refuse RateINN 1 �. • Commercial rate adjusted by same formula * r as residential rate `' •';Commercial,accounts are.processed directly IMF bV Rainbow DisposalMAW . • A Commercial franchise.Fee of 3% wasset n 1993PP _ Proposed franchise.fee transfer increase to 20 : 5. 044% d0 n 5 �� . • 'General Fund receives $124,000 per year for , 7 each percent .increase in`the franchise fee 3 k Financial Impact of : Projected Franchise Fee Increase NEW commercial Refuse Service .� a Pick Up Schedule 3% 4% . 5% a WIN 1-Yd 1 x Wk; $56.81 : +$0.53 +`$1 06 R qm 2;Yd 1 x wk. ;$92:85 +$0 86: +$1:7Z 3 Yd_1 x Wk $117.38 +$1.09 +$2 18 .f 7 F 2- E OC cities with k . com,merclal Franchise:.FeesSRI AM O Brea 8 ` 0 Buena Park xP-...x. O Fountain Valley 16-/O a Fullerton;- k ®Huntington Beach #� ' " 140/.0 OIrvine aaa ' ' N La Habra 12% O La Palma ^_ � -- _ O Laguna Beach ' O Laguna Niguel " 10% ■Lake Forest v� r ®Los Alamitos $O/O ®Mission Viejo M. - III Newport Beach El Placentia w ' 66/O O San Juan Capistrano g ' o r$a � " p San Clemente :. g 4./O p ElSanta Ana ¢: O Seal.Beach sa. 2% r s < t6ni. x r y h + O Tustin sy k t) O Villa Park 0/O! ®Westminster El Yorba Linda ¢ Hunhngton Beach' a` 4 RCA ROUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: Adopt the 2003-04 Residential Refuse Rate and Approve Amendment to Refuse Agreement with Rainbow Disposal COUNCIL MEETING DATE: June 2, 2003 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff At— Assistant City Administrator (Initial) ) ( ) City Administrator (Initial) ( wiz a ) City Clerk ( ) EXPLANATION FOR.RETURN-OF ITEM: - i (Below • . For RCA Author:Flynn REQUEST FOR LATE SUBMITTAL (To accompany RCA's submitted after Deadline Department: Public Works Subject Residential Refuse Rate Council Meeting Date: 6/2/03 Date of This Request: 5/20/03 REASON (Why is this RCA being submitted late?): Adjustments required to RCA and presentation to incorporate proposed rate Changes and administrative charges EXPLANATION (Why is this RCA necessary to this agenda?): Revised fee is necessary to be in place prior to July 1st CONSEQUENCES How shall delay of this RCA adversely impact the City?): City will pay additional costs to Rainbow that cannot be recovered through the rate. ure: 0,Approved O Denied Department Head Ray Silver City Administrator Document2 07/14/94 , UJ Cb �: T'S U S i Au ( vfduStArc s)Z l, e7 3 . 0 r 0 3 0 � 0- / 7 /,/ 2 ti-:-SSE 11v '7fl. 7/ 7 -- ,r,, Z --7 e'-? CITY OF HL. NTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: U. TO: blylbml 01' 1Iw5d Co• 11-t o. ATTENTION: koOhixkmam Name 610 1.5 k . DEPARTMENT: s t o I G /� �I REGARDING: U O 3- City,State,Zipj , t`Q A See Attached Action Agenda Item �' Date of Approval Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page ✓ Agreement ✓ Bonds Insurance C RCA ✓ Deed Other CC:, b�r� 6EaF/� ILU r NTe partment RCA Agreement Insurance Other ` t;L ��Il 1L V ✓ Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Insurance #51 gJfollowup/letters/coverltr.doc tTelenhnne- 71A.9.QR.9"7% - K. L-, � CITY OF HUNTINGTON BEACH ✓ J,Jor �, � MEETING DATE: June 17, 2002 DEPARTMENT ID NUMBER:PW- 2 J 0NW w Council/Agency Meeting Held: Deferred/Continued to: A proved Conditi nally Approved Denied -D!-P-CI y Cle s Signature Council Meeting Date: June 17, 2 02 Department ID Number: P1E02:c.,60 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION -' rU CD rUC` C- SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS cr Q � SUBMITTED BY: RAY SILVER, City AdministratorGPg:oP PREPARED BY: ROBERT F. BEARDSLEY, Dire tor of Public Works SUBJECT: ADOPT THE 2002-03 RESIDENTIAL REFUSE RATE Fs tatement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The Refuse Collection and Disposal Services Franchise Agreement with Rainbow Disposal Company, Inc. requires an annual review of residential rates. Adjustments to the residential curbside refuse rates are made in accordance with this review. Funding Source: Refuse service fees Recommended Action: Motion to adopt Resolution No.' o. a resolution of the City Council of the City of Huntington Beach establishing residential curbside refuse collection rates. Alternative Action(s): Deny the recommended action. The city still continues to be contractually obligated to forward the increased dollar amount ($.15 per residential unit) to Rainbow Disposal Company, Inc. Analysis: The existing refuse services agreement with Rainbow Disposal calls for an annual review of the residential service rate. A change in compensation for each contract year (July 1 to June 30) is determined by a formula with three variables. The variables and their weighting factor (noted in parenthesis) are the Los Angeles Area Consumer Price Index — CPI (76%), the County of Orange landfill fee (16%), and the local average price of diesel fuel in April (8%). 02-060 June 17 Flynn (Residential Refuse Rates) 4- 6/4/2002 11:07 AM REQUEST FOR COUNCIL ACTION MEETING DATE: June 17, 2002 DEPARTMENT ID NUMBER:PW-02-060 Landfill fees remained constant at $22.00 per ton. Due to an increase in the CPI of 3.171% and a decrease in diesel fuel costs of 14.8%, the amount of increase due the contractor effective July 1, 2002, amounts to 1.225%, or $.15 per residential unit.(Attachment 2). The monthly rate of $16.83 will be collected from residential customers and disbursed in the following manner: Current Proposed Rainbow Disposal w ° , $12.50w $12.65 Materials Recovery Facility (Recycling) $ 3.00 $ 3.00 AB939 Education Fund "`° $5 0.15 $ 0.15 City Costs ��$_1;.03� $ 1.03 TOTAL $r1668' $16.83 Rates for commercial bin service and drop-off and rent-a-bins were also increased by the formula rate of 1.225% as detailed in the Franchise Agreement. Fees for extra pick-ups and pick up of bulky items were increased by $5.00. The July 1, 2002, commercial refuse rate is presented in Attachment 3 as an informational item. This will become the new Exhibit A of the Refuse Collection and Disposal Services Franchise Agreement. Fees are collected directly by Rainbow Disposal and are not under the purview of the City. Staff recommends an increase to the existing monthly residential refuse service collection and disposal charge to residents of$.15 (from $16.68 to $16.83) for the time period of July 1, 2002, to June 30, 2003. The daily refuse rate commencing July 1, 2002, will be $0.5533. Environmental Status: N/A Attachment(s): City Clerk's Page Number No. Description 1 Resolution No. 2 Refuse Rate Certification Letter of May 21, 2002 3 ' Rainbow Disposal Commercial Service Rates RCA Author: James Jones/Joan Flynn:jm 02-060 June 17 Flynn (Residential Refuse Rates).doc -3- 6/6/2002 4:03 PM ATTACHMENT # 1 RESOLUTION NO. 2002-58 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES WHEREAS, pursuant to Huntington Beach Municipal Code Section 8.21.030, the City Council shall establish rates for curbside "residential collection service"maintaining"basic level of service" as defined in the Huntington Beach Municipal Code Section 8.21.010 (u) and (b) respectively. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. That the monthly rate for curbside residential refuse collection for basic level of service shall be $16.83 for each single-family residence and each dwelling unit within a duplex, a triplex, or a four-plex receiving noncommercial refuse collection service. This equates to a daily rate of$0.5533. This increase shall take effect on all billings dated after July 1, 2002,prorated for service from and after July 1, 2002. 2. That this charge for residential curbside collection will be combined with the residential water billing process. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of .Tune , 2002. ATTEST: ;�"'� �� 6-.64�_ `� City Clerk Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: City Ad inistrator _City ,Attom �b v 1/ dZ l ,� T AND AP ROVED: 1P ZD9 Director of Public Works 02reso/curb fee/6/4/02 Res. No. 2002-58 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day of June, 2002 by the following vote: AYES: Green, Boardman, Cook, Houchen, Winchell, Bauer NOES: None ABSENT: Dettloff ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 a d � O jn, DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 May 21, 2002 Mr. Dan Villella, CPA Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92647 RE: 2002 Solid Waste Disposal Rate Certification Below is the 2002-2003 Refuse Rate calculation for the City of Huntington Beach residential and commercial solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculated utilized the formula as specified in sections 11 and 12 of the Refuse Collection and Disposal Services Franchise Agreement (the Agreement) between the City of Huntington Beach and Rainbow Disposal Co., Inc. Data Items Dump Fuel CPI Fee$/ton Price$/Gal 1996 157.7 27.00 1.130 1997 159.9 22.00 1.334 1998 161.8 22.00 1.051 1999 166.6 22.00 1.172 2000 170.6 22.00 1.415 2001 176.6 22.00 1.480 2002 182.2 22.00 1.261 Percentage Change CPI Dump Fee Fuel Price 3.171% 0.0% -14.8% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 100% Resultant Rate Change Factor 2.410% 0.000% -1.185% 1.225% Application of Rate Change Factor to the Residential Rate Existing Percent Rate New Rate Change Change Rate Rate 12.50 1.225% 0.15 12.65 Commercial Refuse Rate Change Percentage 1.225% PRINTED ON RECYCLED PAPER ZS Mr. Dan Villella, CPA City of Huntington Beach May 21, 2002 Page 2of2 Supporting documents including CPI report, fuel bills and commercial rate schedules are attached. In addition, Rainbow Disposal has not increased the fees for extra-pickups or excess bulky-item pickups since before 1996. Attached is a list of the fees and our new fees. CERTIFICATION The foregoing is c mplete and accurate to the best of my knowledge. Bruce Shuman, CPA Chief Financial Officer Rainbow Disposal Co., Inc. ACKNOWLEDGEMENT Dan Villella, CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER 4 ATTAC H M E N T #3 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2002 Standard Service (shown in dollars per month): Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week $ 54.83 $ 89.64 $113.27 Per Week: 2 x Week $ 87.25 $130.96 $174.00 3 x Week $110.66 $167.59 $240.88 4 x Week $123.65 $199.02 $288.95 5 x Week $145.60 $245.42 $369.08 6 x Week $168.98 $283.15 $432.68 *Contractor may make extra charges for special or additional services in accordance with Section 8.21.170 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $227.24 $349.68 $485.23 $583.10 $744.60 $873.15 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 43.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 53.00 per load 40 Yard Drop Off Box* Four (4) days $ 343.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 368.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10-yard DOB's are $15.00 each.) RCA ROUTING SHEET INITIATING DEPARTMENT: PUBLIC WORKS SUBJECT: Adopt the 2002-03 Residential Refuse Rate COUNCIL MEETING DATE: June 17, 2002 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial I Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff ( ) Assistant City Administrator (Initial) ( ) City Administrator (Initial) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM:'- (Below Space For City Clerk's Use Only) RCA Author: James Jones/Joan Flynn N8IZ- v 'ffif 1 c+ ADkV jN Iff)5 Q0/)o M 1Mvljl3kV7j LTV' �► R tN XM fi' ,PSrbw . >a ` 3.JO5) DpVV Council/Agency Meeting Held: 017—20-01 ,rAll Deferred/Continued to: ❑ Approved ❑ Conditionally Approved El Denied P, ity Cler ' Signature Council Meeting Date:' May 20, 2002 Department ID Number: PW 02-049 06 03 02; IVOfSidD 1-6 ortp 356a CITY OF HUNTINGTON BEACH REQUEST FOR ACTION _o C SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR ,�Pez? o '^ PREPARED BY: ROBERT F. BEARDSLEY, DIRECTOR OF PUBLIC WORKSZ.j No.35&7D SUBJECT: REPEAL CHAPTERS 5.40, 5.41, AND 8.20 AND ADOPT CHJ4P#R 8.21 OF THE HUNTINGTON BEACH MUNICIPAL CODE - REFUSE Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Current Huntington Beach Municipal Code, Chapters 5.40, 5.41 and 8.20 relating to refuse requires revisions to clarify definitions, address refuse issues faced by the City, enable successful prosecution of offenders, and to bring the ordinance into alignment with the existing franchise agreement with the City's refuse hauler. Funding Source: No funding required for this action. Recommended Action: Motion to: Adopt Ordinance No: 3 � 61 O repealing Chapters 5.40 (Collection from Trash Drop Off Boxes and Trash Bins), 5.41 (Collection of Recyclable Materials) and 8.20 (Refuse) of the Huntington Beach Municipal Code and adding Chapter 8.21 (Refuse Management), thereto pertaining to refuse management. Alternative Action(s): No alternative action recommended. Analysis: In November and December of 2001, Public Works staff met with representatives from City Council, the Departments of Administration, City Attorney's Office, Police and Planning, as well as the City's franchised hauler, Rainbow Disposal, to review the enforceability and effectiveness of Huntington Beach Municipal Code Chapter 8.20 — Refuse. Core refuse issues at that time included: • Under-serviced commercial accounts, • Improper trashcan storage and collection placement in alleys, • Unlawful large item dumping, scavenging, litter and alleyway obstruction • And low-income senior exemptions. Jones: Municipal Code 8.20 1 5/8/2002 3:57 PM IN/ On January 22, 2002, staff brought a proposed revision to Chapter 8.20 of the Municipal Code to the City Council. At that meeting, Council raised questions regarding ownership of refuse once it is placed at the curb, the hours of placement, scavenging and the language used in the ordinance. Council then directed staff to further refine the ordinance and to incorporate a review of all chapters relating to refuse. After meeting with legal counsel, it was decided that a complete overhaul of Chapters 5.40, 5.41, and 8.20 would be needed to improve clarity and eliminate contradiction. Furthermore, Chapter 5.40 was not in alignment with the existing Franchise Agreement the City had entered into with our franchised hauler as it relates to exclusivity. The recommendation is to repeal the existing chapters (5.40, 5.41, and 8.20) and incorporate the three chapters into the proposed Chapter 8.21. Highlights of the revision include: Repeal of Chapter 5.40: This Chapter is out of compliance with our Franchise Agreement giving our hauler exclusive rights to collection of refuse within City limits. Repeal of Chapter 5:41: Contents transferred to Chapter 8.21. Repeal of Chapter 8:20: Changes include: Language: Refuse was defined to include rubbish, solid waste, trash and garbage. Under-serviced commercial accounts: In Chapter 8.20 the terms "sufficient sized bin" and "adequate service" were not clearly defined. A definition of ."level full" has been written into the revised code to reduce the occurrence of overflowing commercial bins. Level full is defined as the amount of refuse deposited in a container so that it shall not exceed the lowest top edge of the container and still allow the lid of the container to be completely closed. This definition creates an unbiased, measurable means of evaluating a bin. Improper trashcan storage and collection placement in alleys: Revisions expand the existing code so that the criterion for storage is not limited to cans within view from "a public way," but also from public and private alleys. Residents will no longer be allowed to leave trashcans in the alleyway throughout the week. Placement for collection is clarified to the alley side of the property line so collectors do not have to enter private property. The timeframe for placement of cans for collection was changed from 6:00 p.m. the night before collection to noon the day before collection. Unlawful large item dumping: Clearly defines that the responsibility for legally disposing of the object belongs to the property owner. Low-income senior exemptions: Replacing the static income limit of $10,000, the revision requires that the household income should not exceed the "HUD Income Guidelines —Very Low Income Category" to qualify. This is consistent with Municipal Code Chapter 3.36 — Utility Tax. Jones: Municipal Code 8.20 2 5/9/2002 4:06 PM sue, Environmental Status: Not Applicable Attachment(s): City Clerk's • - Number No. Description 1. Ordinance No. 35-60 repealing Chapters 5.40, 5.41, and 8.20 of the Huntington Beach Municipal Code and adding Chapter 8.21 thereto pertaining to Refuse Management. 2. Legislative Draft of 5.40, 5.41 and 8.20 RCA Author: Jim Jones:jm Jones: Municipal Code 8.20 3 5/8/2002 3:57 PM ATTACHMENT # 1 n «v ORDINANCE NO. 3560 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH REPEALING CHAPTERS 5.40, 5.41, AND 8.20 OF THE HUNTINGTON BEACH MUNICIPAL CODE AND ADDING CHAPTER 8.21 THERETO PERTAINING TO REFUSE MANAGEMENT. WHEREAS,the State of California has adopted the California Integrated Waste Management Act of 1989 (Public Resources Code §40000, et seq.) (the"Act"); and WHEREAS,the Act provides that the City may determine the aspects of Refuse collection and the collection of recyclables which are of local concern, including,but not limited to, frequency of collection, means of collection and transportation, level of service, charges and fees, and nature, location, and extent of providing Refuse handling and recycling services; and WHEREAS,the Act provides that the City may determine whether such services are to be provided pursuant to a partially exclusive or wholly exclusive franchise; and WHEREAS,the Act requires that all cities are required to divert fifty percent (50%) of all refuse through source reduction, recycling, and composting services; and WHEREAS,the City has determined that Refuse handling and Recyclable Waste Collection services shall be provided exclusively by the City Refuse Collector; and WHEREAS,persons who perform Recycling Collection within the City without benefit of a City-issued permit are hampering the City's ability to reach and maintain the Act's solid waste diversion requirements; and WHEREAS, there is an increasing problem of overflowing Refuse Containers and an unsightly number of such Containers being left out during non-collection periods; and WHEREAS, the overflow and excess number of Refuse Containers leads to extensive litter problems, visual blight and potential health hazards; and WHEREAS, establishing adequate requirements for containing and collecting Refuse will substantially resolve the problem of overflowing and excessive number of Refuse Containers, litter and visual blight caused by such overflowing and excessive number of Refuse Containers and will serve to protect the public's health, safety and welfare. WHEREAS, it is necessary to enact measures prohibiting the activities of.such non- permitted persons and to ensure that such prohibitions can be effectively enforced. NOW THEREFORE, the City Council of the City of Huntington Beach, California, does hereby ordain as follows: 02ord/chap 8-21/5/7/02 1 Ord. No. 3560 w SECTION 1. Chapters 5.40, 5.41, and 8.20 of the Huntington Beach Municipal Code are hereby repealed. SECTION 2. Chapter 8.21 is hereby added to the Huntington Beach Municipal Code, said Chapter to read as follows: Chapter 8.21 REFUSE MANAGEMENT Sections 8.21.010 Definitions 8.21.020 Collection of Refuse and Recyclable Waste Material 8.21.030 Residential Collection Service Charge 8.21.040 Dumping of Refuse prohibited 8.21.050 Occupant responsible for premises 8.21.060 Owner liable for premises 8.21.070 Accumulation prohibited 8.21.080 Storage 8.21.090 Containers and transportation of Refuse—permit 8.21.100 Containers—location 8.21.110 Container—interference 8.21.120 Container—improper substances 8.21.130 Container—removal 8.21.140 Collection—manner 8.21.150 Residential Refuse Collection 8.21.160 Commercial Collection Service 8.21.170 Special Collections—excluded Refuse 8.21.180 Collection of Recyclable Material 8.21.190 Disposal methods 8.21.200 Rules and regulations 8.21.210 Appeals 8.21.220 Unauthorized collection prohibited 8.21.230 Violation—penalty. 8.21.010 Definitions. The following definitions shall apply in the interpretation and enforcement of these regulations: (a) "Adequate Service"means the combination of the number of collections, the number of Containers, and the size of Containers necessary so as not to cause the accumulation of Refuse outside Containers or in excess of Level Full. (b) 'Basic Level of Service" means, with respect to Residential Collection Service, that level of Collection and disposal service necessary to provide Adequate Service for the collection of Refuse generated by each single family residence, and each dwelling unit 02ord/chap 8-21/5/7/02 2 • Ord. No. 3560 within a duplex, a triplex, or a fourplex, as specifically provided in any given contract between the City and any person for collection of such Refuse, or as provided by resolution of the City Council, excluding Refuse or substances excluded from collection by regulation of the Director or by contract, as hereinafter provided, Refuse capable thereof which has not been placed in Containers or bundles within the weight and size J limits hereinafter set forth for Containers or bundles, and any unit of Refuse which exceeds four feet in length or which exceeds forty pounds in weight. Basic Level of Service, with respect to Commercial Collection Service, means that level of collection and disposal service necessary to provide Adequate Service. (c) "City Refuse Collector" means any Person either employed by or under contract with the City to provide removal, transportation,processing, and disposition of Refuse from residents and users of premises within the City. (d) "Collection" means the pickup, removal, and transportation of Refuse by any Person authorized to do so by the City. (e) "Commercial Collection Service" means the collection of Refuse from all property within the City excluded from Residential Collection Service, or properties subject to Residential Collection Service which choose to utilize Commercial Collection Service. (f) "Container"means any vessel, tank, receptacle, dumpster, box or bin used or intended to be used for the purpose of holding any Refuse, Recyclable Material, and Recyclable Waste Material. Commercial Containers utilized in Commercial Collection Service include all types of Containers, whereas Residential Containers utilized in Residential Collection Service shall not include dumpsters or bins. (g) "Corporation"means corporations,partnerships, and all business enterprises, associations or organizations, however designed. (h) "Director" means the Huntington Beach Director of Public Works or his authorized representative. (i) "Hazardous Waste" means a waste, or combination of wastes, which because of its quantity, concentration, or physical, chemical, or infectious characteristics may a) cause, or significantly contribute to an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or b)pose a substantial present or potential hazard to human health or environment when improperly treated, stored, transported, or disposed of, or otherwise managed. (j) "Level Full"means the amount of Refuse deposited in a Commercial Container so that it shall not exceed the lowest top edge of the Container and still allow the lid of the Container to be completely closed. 02ord/chap 8-21/5/7/02 3 Ord. No. 3560 (k) "Non-combustible Refuse"means ashes, bottles,broken crockery, glass, tin cans and metallic substances or any other substances that will not incinerate through contact with flames of ordinary temperature. (1) "Person" means any individual, firm, governmental unit, organization,partnership, corporation, company or other entity. (m) "Processing"means reduction, separation, recovery, conversion or recycling of Refuse. (n) 'Recyclable Material"means materials which are segregated at the source from other Refuse for the purpose of Recycling and includes,but is not limited to,paper, glass, metals, wood,plastics,wastes, bulky goods, waste oil, and construction and demolition materials and which is sold by the owner thereof to a third party. (o) "Recyclable Material Collection"means the collection, transportation, storage, transfer, or processing of Recyclable Materials. (p) "Recyclable Waste Material"means discarded materials such as, but not limited to, newspapers, glass and metal cans, which are separated from other Refuse for the purpose of Recycling and which are not sold to a third party (q) "Recyclable Waste Material Collecting"means the collection, transportation, storage, transfer, or processing of Recyclable Waste Material. (r) "Recycling"means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise be disposed of by landfilling or transformation, and returning materials to the economic mainstream in the form of raw material for new, reused, or reconstituted products. (s) 'Refuse" means all putrescible and non-putrescible solid, and semisolid wastes, including garbage, trash, refuse,paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not Hazardous Waste, manure, vegetable or animal solid or semi-solid wastes, and other discarded solid or semi-solid wastes, but not including Hazardous Waste, radioactive waste regulated pursuant to the State Radiation Control Law, untreated medical waste regulated pursuant to the State Medical Waste Management Act, and liquid waste. Recyclable Waste Material is considered Refuse for purposes of this Chapter. Materials that are sold or donated by the owner thereof to a third party, and thereafter recycled, are not considered Refuse for purposes of this Chapter. The term "Refuse" shall be synonymous with the term "solid waste" as used in the Integrated Waste Management Act, Public Resources Code §40000, et seq. (t) "Refuse Collection"means the collection, transportation, storage, transfer, disposal, or processing of Refuse. 02ord/chap 8-21/5/7/02 4 ► Ord. No. 3560 w (u) "Residential Collection Service"means the collection of Refuse from each single-family residence, and each dwelling unit within a duplex, a triplex or a fourplex receiving noncommercial Refuse Collection Service. It shall not include any hotel, motel, lodge, hall, club, tourist camp, trailer camp,mobilehome park, church,business or industrial establishment, or any lot containing more than four dwelling units. 8.21.020 Collection of Refuse and Recyclable Waste Material. (a) The collection of Refuse and Recyclable Waste Material shall be performed exclusively by the City Refuse Collector. The City Council may regulate,by ordinance or resolution, all aspects of the Residential Refuse Service and the Commercial Refuse Service, including,but not limited to, frequency of collection, means of collection and transportation, level of services, charges, fees, and nature, location, and extent of providing such Services. (b) Any other provision of this Code to the contrary notwithstanding, the City may enter into contracts with responsible persons for the collection of Refuse within the City utilizing such procurement procedures and upon such terms and conditions as are deemed appropriate by the City Council. (c) In the event of an emergency or other unforeseen or unpreventable circumstances in which the City Refuse Collector is unable to maintain Refuse Collection Services, the City Administrator may issue limited or temporary permits for a period not to exceed thirty(30) days to persons or corporations to perform any of the services covered by this Chapter. Any service beyond thirty(30) days shall be approved by the City Council. 8.21.030 Residential Collection service charge. There shall be a charge for Residential Collection Service which rates shall be established from time to time by resolution of the City Council. Such charge shall apply to persons occupying single-family dwellings, and each dwelling unit within a duplex, a triplex or a fourplex. A dwelling shall be deemed occupied if connected to an active water service. This charge shall not apply to persons occupying residential units such as apartments, mobilehome parks, or other multi-family complexes,who are currently contracting directly with the City Refuse Collector. Any person receiving Residential Collection Service who is sixty-two years of age or older shall be exempt from the charge imposed by this section provided the combined adjusted gross income, as used for federal income tax reporting purposes of all members of the household in which such service user resides does not exceed the"HUD Income Guidelines—Very Low Income Category" currently on file in the City's Department of Economic Development, for the calendar year prior to the fiscal year(July 1 through June 30) for which the exemption provided by this chapter is applied. 02ord/chap 8-21/5/7/02 5 Ord. No. 3560 8.21.040 Dumping of Refuse prohibited. It shall be unlawful for any person to cast, deposit, place, sweep,throw, discard or leave any Refuse or cause such Refuse to be cast, deposited, swept,placed, thrown, discarded or left in any place, public or private, within the City, without the express permission of the owner of the premises. 8.21.050 Occupant responsible for premises. Every person occupying, using or controlling any premises shall keep the premises in a clean and sanitary condition, and no person shall permit any Refuse, sewer effluent, excrement, slop or stagnant water, butcher offal,market refuse, dead animal or any other noxious or offensive matter of any kind, or any other substance that may become offensive, to be deposited or to remain thereon except as otherwise provided by law. 8.21.060 Owner liable for premises. The owner of any premises shall be liable for the costs to the City for the enforcement of any provision of this Chapter. 8.21.070 Accumulation prohibited. No person occupying, using or controlling any premises shall permit any Refuse to accumulate thereon, nor shall any such person maintain any accumulation of Refuse thereon, unless in either event the same is stored in a manner approved by the Director or by law. It shall be unlawful for any person to dump, deposit, place or bury Refuse in or upon any lot, land, street, or alley, whether public or private,nor throw such Refuse in any creek, stream,water or water way within the City. Any unauthorized accumulation of Refuse on any premises is hereby prohibited and declared to be a nuisance. 8.21.080 Storage. (a) Refuse shall be stored in a Container of a type approved by the Director. Every such Container shall be constructed of metal,plastic, or equally durable material, in such manner as to be strong, watertight, not easily corrodible, fly proof, and rodent proof. Such Container shall have handles or other attachments designed for and capable of lifting, and shall be kept covered at all times, except when Refuse is being deposited or removed from such container. Commercial Containers shall be kept in a Level Full condition. The cover shall completely and tightly close the Container so as to render it fly and rodent proof and so that no Refuse may be visible. A sufficient number of Containers shall be provided for the Basic Level of Service, in order to insure that all Refuse is contained within completely covered Containers until such time as the Refuse is collected. (b) Refuse shall be stored in such a manner that it will not provide harborage to rats, nor cause a fire hazard. (c) Sturdy, grease-resistant, water proof, nonreturnable, plastic bags which are specifically designed for garbage and Refuse may be used for Residential Collection Service provided that each bag has a capacity not to exceed thirty-two (32) gallons and shall not weigh more than sixty(60) pounds when filled and the opening is secured so that contents cannot be removed, spilled or seen, and the weight does not cause the bag to tear when handled. Such bags shall comply with all of the requirements of subsections (a) and (b) 02ord/chap 8-21/5/7/02 6 Ord. No. 3560 except for the requirements of handles and covers. Residential Collection Service may include tree trimmings and other similar matter which shall be tied in bundles measuring not more than four feet long and weighing not more than forty pounds. 8.21.090 Containers and transportation of Refuse—pen-nit. No Person other than the City Refuse Collector shall transport Refuse or Recyclable Material in a conveyance or Container that has not been approved by the Director. Such Persons shall obtain a permit from the Director, which shall be prominently displayed on such conveyance or Container. All vehicles and Container used in collecting and transporting Refuse or Recyclable Material shall be provided with metal bodies so constructed as to be leakproof and to prevent the escape of offensive odors and loss, spillage or blowing away of any contents collected or transported within the City. Such vehicles and Containers shall be thoroughly cleaned to eliminate odors and decayed materials. 8.21.100 Containers--location. Property owners and tenants are each responsible for the placement of Residential Containers and any accumulation of Refuse which is for collection, and which shall be kept or placed in such a manner as not to be visible from any street or alley, whether public or private, except from noon on the day preceding collection to 10 p.m. on the day of collection. During the period of collection, Containers and any accumulation of Refuse shall be placed, outside of any enclosures, no later than 6:30 a.m., as follows, unless otherwise directed by the Director: (a) On alley. On the premises, at the rear property line, where there is a through alley in the rear of the premises; (b) Access from side entrance. On the premises at an accessible point adjacent to any side entrance thereto where no through alley exists; (c) At curb. At the curb in front of the premises, where no through alley or side entrance exists. 8.21.110 Container--interference. No person except the owner thereof, his agent or employee, a duly authorized City employee, or any employee of the City Refuse Collector, shall interfere in any manner with any Container, or any accumulation of Refuse which is placed for Collection, nor shall any person remove such Container or accumulation from the location where it shall have been placed by the owner, his agent or his employee. 8.21.120 Container--improper substances. No person shall place or cause or permit to be placed in any Container any substance or material other than Refuse as defined in this Chapter. Large items included in the definition of refuse, exceeding four feet(4') in length or forty(40) pounds .in weight, shall not be placed in refuse containers. Persons wishing to dispose of such.large items shall inform the City Refuse Collector and make special arrangements to have the items removed. The City Refuse Collector may levy a charge for removal of such items under a schedule and formula to be uniformly applied, based on weight and size of the items, which formula and schedule shall have been approved by the Director. The City Refuse Collector shall not be required to collect Hazardous Waste. 02ord/chap 8-21/5/7/02 7 > Ord. No. 3560 8.21.130 Container—removal. (a) The Director may cause to be posted a notice on any Container which does not display a permit issued pursuant to Section 8.21.090, or on any Container illegally placed on public or private property. The notice shall specify the nature of the violation and shall state that the Container must be removed within twenty-four(24) hours or it may be removed and stored by the City, and the contents disposed of, at the expense of the owner thereof. The posting of a notice to remove shall constitute constructive notice to the owner and user of the requirement to remove the Container. (b) If the Container is not removed within twenty-four(24) hours after the notice to remove is posted, the Director may order the removal and storage of the Container and the disposal of its contents. The owner of the Container shall be responsible to the City for the actual cost of removal, storage, and disposal. All amounts due to the City for the cost of removal, storage and disposal shall be paid before the Container is returned to the owner. Such amounts shall constitute a debt owed by the owner to the City, and the owner shall be liable to the City in an action brought by the City for the recovery of such amounts. (c) If the identity of the owner of a Container that has been removed by the City is known to the Director, the Director shall promptly cause notice to be mailed to the owner to claim the stored property. If the Container is not claimed within ninety(90) days after removal and notice to the owner, or ninety(90) days after removal if the identity of the.owner is unknown to the Director, the Container and its contents shall be deemed abandoned property and may be disposed of accordingly. 8.21.140 Collection--manner. The owner, occupant,tenant or lessee of any premises shall provide or cause to be provided, Basic Level of Service for the removal of Refuse from said premises. Properties utilizing Commercial Collection Service shall provide Adequate Service. The City Refuse Collector shall remove from the premises all Refuse which has been properly placed for collection, whenever such Refuse is of a type and in an amount provided by contract with the City. Any removal of Refuse by the City Refuse Collector, or any person shall be performed in a neat, orderly and quiet fashion,without causing damage to the Container or the lid. Any spilled matter shall be picked up by the person responsible for the spillage, and the premises shall be left in a clean and orderly condition. Overfilled Containers of Refuse creating accumulations of Refuse in or at the pickup site, shall be the responsibility of the premises owner for clean up. The security and proper Level Full Container shall be the responsibility of the premises owner. All additional collection of any type of Refuse that does not fit into a Container or causes an overfull Container shall be the responsibility of the premises owner along with any additional costs for removal or extra collection services. Refuse lawfully placed for collection shall be the property of the City of Huntington Beach from the time of placement until the time of collection and shall become the property of the City Refuse Collector from the time of collection to the time of disposal. 02ord/chap 8-21/5/7/02 8 + Ord. No. 3560 8.21.150 Residential Refuse Collection. The City Refuse Collector shall operate and maintain Residential Refuse Collection in the City by providing the Basic Level of Service on a regularly scheduled basis, approved by resolution of the City Council, not less frequently than once each week. The Director may by regulation exclude from such service any item or substance deemed hazardous, obnoxious or otherwise inappropriate for such service. 8.21.160 Commercial Collection Service. Persons owning or operating premises utilizing Commercial Collection Service shall contract with the City Refuse Collector for the provision of the Basic Level of Service. The Director may,by written order, require the owner and/or manager of any premises subject to Commercial Collection Service to provide Adequate Service to the premises in question. 8.21.170 Special Collections--excluded Refuse. (a) Refuse exceeding the limitation set forth in this Chapter may be scheduled for special Collection either at regular special Collection dates or by arrangement with the City Refuse Collector. (b) The City Refuse Collector shall make available Containers and drop-off bodies, provide additional collections not required by this Chapter, pick up Refuse at points other than as required in this Chapter or provide for the collection of greater volumes of Refuse per collection than required in this Chapter, any or all of these additional services at the request of the person or business being served. The City Refuse Collector may make a direct charge in each instance for such additional service under a written agreement which shall be subject to the approval of the Director and at such rates as are reasonable,just and uniform for all persons or businesses being served. All such direct charges shall be collected by the City Refuse Collector. (c) The removal of wearing apparel,bedding or other refuse from homes, hospitals, or other places where highly infectious or contagious diseases have prevailed, shall be performed under the supervision and direction of the County Health Officer, and such Refuse shall neither be placed in Containers nor left for regular Collection and disposal. (d) Highly inflammable or explosive or radioactive Refuse shall not be placed in Containers for regular Collection and disposal, but shall be removed under the supervision of the Fire Chief at the expense of the owner or possessor of the material. (e) The Director may,by written permit, authorize provision of bins and drop-off bodies if the City Refuse Collector fails to provide such service within five (5) calendar days after a customer order and such service is not thereafter provided within forty-eight (48) hours after notice to the City Refuse Collector of such failure by the Director. 8.21.180 Collection of Recyclable Material. Persons collecting Recyclable Material within the City shall, in addition to obtaining a business license, obtain a Recyclable Material Collection 02ord/chap 8-21/5/7/02 9 Ord. No. 3560 and Disposal Permit from the Director prior to commencing such collection and annually thereafter. Persons operating under such a Permit shall, on a quarterly basis or at such times as determined by the Director, submit a report to the Director specifying the amount of Recyclable Material collected within the City, the location(s) from which the Recyclable Material was collected, and the location(s)-to which the Recyclable Material was brought. Such report shall be kept confidential unless otherwise provided by law. Failure to submit timely reports shall be a basis for revocation of the Recyclable Material Collection and Disposal Permit. The Director shall have the right to audit the records of Persons who have received a Permit pursuant to this Section. 8.21.190 Disposal methods. The City Refuse Collector shall dispose of Refuse in a manner approved by the Director and consistent with the provisions of this Chapter. 8.21.200 Rules and regulations. The Director shall make such rules and regulations as may be necessary, reasonable, and proper to enforce the provisions of this Chapter. A copy of any rule or regulation promulgated by the Director shall be provided to the City Council. 8.21.210 Appeals. Any person adversely impacted by a ruling of the Director may appeal such ruling to the City Administrator. The appeal shall be in writing to the City Administrator and shall set forth the basis of the appeal. The City Administrator, or his designee, shall hold a hearing on the appeal within thirty(30) days of receipt of the written appeal. The City Administrator, or his designee, shall render a written decision within thirty(30) days after the close of the hearing on the appeal by providing it to the appellant by first class mail. The decision of the City Administrator shall be final. 8.21.220 Unauthorized collection prohibited. No person other than the City Refuse Collector shall scavenge or otherwise remove Refuse or Recyclable Waste Material that has been placed at the designated collection location. 8.21.230 Violation--penalty. (a) It shall be unlawful for any person to provide Refuse service within the City without the permission of the Director. (b) It shall be unlawful for any person to utilize Refuse collection service by a Person not permitted to provide such service by the Director. (c) Any person who violates any provision of this chapter shall be subject to the provisions of Chapters 1.16 and 1.18 of this Code. (d) The provisions of this chapter shall be enforced by City Police, Code Enforcement Officers, or by any City department authorized to do so by the City Administrator. 02ord/chap 8-21/5/7/02 10 Ord. No. 3560 SECTION 3. If any section, subsection, subdivision,paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases are declared unconstitutional. SECTION 4. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held thereof on the 3rd day of .Tune , 2002. ATTEST: 7 Mayor City Clerk 064-n APPROVED AS TO FORM: REVIEWED AND APPROVED n ZLZI�- (City Attorney c� z City Ad istrator INI APPROV D: Director of Public Works 02ord/chap 8-21/5/7/02 ]] Ord. No. 3560 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY,the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a re ular meeting thereof held on the 20th day of May, 2002, and was again read to said City Council at a regular meeting thereof held on the 3rd day of June, 2002, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Green,Dettloff, Boardman,Cook, Houchen,Winchell, Bauer NOES: None ABSENT: None ABSTAIN: None I,Connie Brockway CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on 2002 In accordance with the City Charter of said City City Clerk and ex-officio Clerk Connie Brockway, City Clerk of the City Council of the City Deyuty City Cleric of Huntington Beach, California CITY OF HUNTINGTON BEAGH �� ZI o MEETING DATE: June 18, 2001 DEPARTMENT ID N :P4-0►1=� G / Council/Agency Meeting Held: 0) Deferred/Continued to: &ApAmed 0 Conditional) Appr ved 0eni D W-C Jerk's i nature Council Meeting Date: June 18, 2001 Department ID Number: PW-01-076 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION a SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, CityAdministrator o��= Cn PREPARED BY: ROBERT F. BEARDSLEY, Director of Public Works o ,w � SUBJECT: ADOPT THE 2001-02 REFUSE RATE ,p�S /j/� : Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The Refuse Collection and Disposal Services Franchise Agreement with Rainbow Disposal Company, Inc. requires an annual review. Adjustments to the refuse rates are made in accordance with this review. Funding Source: Refuse service fees Recommended Action: Motion to adopt Resolution No,�200/- .3g , a resolution of the City Council of the City of Huntington Beach establishing residential curbside refuse collection rates. Alternative Action(s): Deny the recommended- action. The city still continues to be obligated to forward the increased dollar amount ($.29 per residential unit) to Rainbow Disposal Company, Inc. Analysis: The existing refuse services agreement with Rainbow Disposal calls for an annual review of the residential service rate. A change in compensation for each contract year (July 1 to June 30) is determined by a formula with three variables. They are the Los Angeles Area Consumer Price Index (CPI), the County of Orange landfill fee, and the local average price of diesel fuel. 2 01-075 June 18 Flynn (Residential Refuse Rates) -2- 6/13/01 2:41 PM k6QUEST FOR COUNCIL ACTi%jN MEETING DATE: June 18, 2001 DEPARTMENT ID NUMBER:PW-01-076 Under the formula, the amount of increase due the contractor effective July 1, 2001 amounts to 3.039% or $.37 per residential unit, due to an increase in the CPI of 3.517% and an increase in diesel fuel costs of 4.6%:'. Landfill fees remained constant at $22.00 per ton. (Attachment 2) Rainbow- Disposal has agreed to accept an increase of $.29 per residential unit, ,resulting in a savings of $.08 per household, per month from the formulated fee. In 1999 and 2000, Rainbow Disposal under the contract was entitled to an increase, which they forfeited. Adding those previous years' savings to the above $.08 for 2001 brings the cumulative ratepayers' savings to approximately $1,173,400. The July 1, 2001 commercial refuse rate is presented in Attachment 3 as an informational item. This will become the new Exhibit A of the Refuse Collection and Disposal Services Franchise Agreement. Fees are collected directly by Rainbow Disposal and are not under the purview of the city. Staff recommends an increase to the existing monthly residential refuse service collection and disposal charge to residents of$.29 (from $16.39 to $16.68) for the time period of July 1, 2001 to June 30, 2002. Staff will be reviewing the administrative and overhead costs associated with the Refuse Enterprise and returning to Council with an analysis of the program. Environmental Status: N/A Attachment(s): NumberCity Clerk's Page Description 1 Resolution No. ;2O6)/-3 ff 2 Refuse Rate Certification Letter of May 30, 2001 and addendum dated June 6, 2001 3 Exhibit A RCA Author: James Jones 2 01-075 June 18 Flynn(Residential Refuse Rates) -3- 6113/01 3:02 PM RESOLUTION NO. 2001-38 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES WHEREAS,pursuant to Huntington Beach Municipal Code Section 8.20.015, the City Council shall establish curbside residential refuse collection rates for"basic level of service" as defined in the Huntington Beach Municipal Code Section 8.20.010(a)and "unit of service" as defined in Section 8.20.010(k), NOW, THEREFORE, the'City Council of the City of Huntington Beach does hereby resolve as follows: 1 That the monthly rate for curbside residential refuse collection for basic level of service shall be $16.68 per unit of service. This rate shall take effect on all billings dated after July 1, 2001, prorated for service from and after July 1, 2001. 2. That this charge for residential curbside collection will be combined with the residential water billing process. 3. That partial payments shall be applied to outstanding balances in the following manner: A. Towards all penalties and interest due the City; B. Should a portion of the payment remain, it shall be applied towards outstanding refuse charges; and C. Should a portion of the payment remain, it shall be applied towards outstanding water utility tax balances; and D. If the account is a member of the Fire Med Service program, any remainder shall be applied toward this program; and E. Should a portion of the payment remain, it shall be applied towards water service charges. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18th day of June , 2001. 4UtAft, AT T ST: ayor City Clerk ob- 2J-o I APPROV D AS TO FORM: C REVIEWED AND APPROVED: City Attorney 6-13- 61 " �11510l INITJA-T-EV AND APP D: City Adm >strator Director of Public Works 0 1 reso/refuse/6/13/01 Res. No. 2001-38 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 18th day of June, 2001 by the following vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Bauer NOES: None ABSENT: Dettloff ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California ATTACHMENT # 1 S ATTACHMENT #2 a _ G � e DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 May 30, 2001 Mr. Dan Villella, CPA Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92647 RE: 2001 Solid Waste Disposal Rate Certification Below is the 2001-2002 Refuse Rate calculation for the City of Huntington Beach residential and commercial solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculated utilized the formula as specified in sections 11 and 12 of the Refuse Collection and Disposal Services Franchise Agreement (the Agreement) between the City of Huntington Beach and Rainbow Disposal Co., Inc. Data Items Dump Fuel CPI Fee$/ton Price$/Gal 1996 157.7 27.00 1.130 1997 159.9 22.00 1.334 1998 161.8 22.00 1.051 1999 166.6 22.00 1.172 2000 170.6 22.00 1.415 2001 176.6 22.00 1.480 Percentage Change CPI Dump Fee Fuel Price 3.517% 0.0% 4.6% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 100% Resultant Rate Change Factor 2.673% 0.000% 0.366% 3.039% Application of Rate Change Factor to the Residential Rate Existing Percent Rate New Rate Change Change Rate Rate 12.21 3.039% 0.37 12.58 Commercial Refuse Rate Change Percentage 3.039% PRINTED ON RECYCLED PAPER 0 Mr. Dan Villella, CPA City of Huntington Beach May 30, 2001 Page 2 of 2 Supporting documents including CPI report, fuel bills and commercial rate schedules are attached. Due to increases in energy, labor, and regulatory costs as well as a depressed recyclable commodity market, Rainbow Disposal Co., Inc. will accept the full rate modification as allowed under the Agreement. CERTIFICATION The foregoing is complete and accurate to the best of my knowledge. Bruce Shuman, CPA Chief Financial Officer Rainbow Disposal Co., Inc. ACKNOWLEDGEMENT Dan Villella, CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER G c^, DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 June 6, 2001 Mr. Dan Villella, CPA Director of Finance City of Huntington Beach 2000 Main St. Huntington Beach, CA 92647 RE: 2001 Solid Waste Disposal Rate Certification Dear Dan: As an addendum to our letter to you dated May 30, 2001, Rainbow Disposal is pleased to provide the City of Huntington Beach with a savings of S.08 per household per month. for residential refuse collection service. This adjustment will reduce the rate increase from $.37 to $29. The commercial rate increase of 3.03% will remain unchanged. If you have any questions feel free to call. Sincerely. i Bruce Shuman Chief Financial Officer BS:sjj2103. Cc: Joan Flynn PRINTED ON RECYCLED PAPER 0/ • ATTACHMENT #3 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2001 Standard Service (shown in dollars per month): * Bin Size: 1 Cubic Yard . 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week 54.20 88.61 111.96 Per Week: 2 x Week 86.26 129.49 172.02 3 x Week 109.42 165.74 238.22 4 x Week 122.28 196.85 285.82 5 x Week 144.00 242.75 365.07 6 x Week 167.13 280.08 428.00 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $224.49 $345.45 $479.36 $576.05 $735.59 $862.59 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 42.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 52.00 per load 40 Yard Drop Off Box* Four (4) days $ 340.00 per load 10 Yard Drop Off Box ' Four (4) Days $ 365.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are $15.00 each.) EXHIBIT A RAIN -OW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HG TINGTON BEACH, EFFECTIVE JULY 1, 2000 Standard Service shown in dollars per month): B\Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x W\k 54.20 88.61 111.96 Per Week: 2 x Week 86.26 129.49 172.02 3 x Week 109.42 165.74 238.22 4 x Week 122.28 196.85 285.82 5 x Week 144.00 242.75 365.07 6 x Week 167.13 280.08 428.00 *Contractor may make extra char es fa special or additional services in Y 9 � p accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add\25016for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 Week 6 x Week $224.49 $345.45 $479.36 $576.05 $73, .59 $862.59 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 42.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 52.00 per load 40 Yard Drop Off Box* Four (4) days $ 340.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 365.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are $15.00 each.) J CITY OF HUNTINGTON BEACH IV C INTERDEPARTMENTAL COMMUNICATION o C C-) z �-��"-+rn _ o-i��' To: Honorable Mayor and CityCouncil Members coca-oD'rr-- rn��;oc-_ From: Joan L. Flynn, Administrative Analyst, Public Works Department iV = Date: June 18, 2001 o y Subject: Late Communication Attached is a revised copy of Attachment 3 for Item D-3, Public Hearing to Consider Fee Increase for Solid Waste Collection and Disposal Pursuant to Current Contract Between City and Rainbow Disposal Company - Adopt Resolution No. 2001 -38. The only change is the year of effective date. The original date was listed as,July 1 , 2000, and the revised states the commercial service rates are effective July 1 , 2001 . WKTS Comm(ANICAM O - D 3 CAwindows\TEMP\late communication Notice 061801.doc 1 RCAIZOUTING ?HEET INITIATING DEPARTMENT: PUBLIC WORKS SUBJECT: Adopt the 2001-02 Residential Refuse Rate COUNCIL MEETING DATE: June 18, 2001 RCA ATTACHMENTS3 ;STATUS ,voS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the CityAttomey) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPEANATION;°FOR,MIS.SING ATTACHMENTS'. 3 REVIE „3 RETURNED, „FORWARDED' WED ...Administrative Staff ( ) ( ) Assistant City Administrator (Initial) ( ) ( ) City Administrator (Initial) ( ) ( ) City Clerk 'EXPLANATIO'N FOR RETURN OF ITEM„ (BelowSpaceFor City Clerk's Use Only) RCA Author: James Jones AFFIDAVIT OF PUBLICATION This space is for the County Clerk's Filing Stamp STATE OF CALIFORNIA, ) ) ss. County of Orange ) I am a citizen of the United States and a resident Proof of Publication of of the County aforesaid;I am over the age of eighteen years,and not a party to or interested in the above entitled matter. I am the principal TICE-OF-PUBLIC-HEARING clerk of The Orange County Register, a CITY_OF_HUNTINOT.ON_BEACH newspaper of general circulation published m FEE.INCREASE FOR_SOLID-WASTE COLLECTION g ,P AND-DISPOSAL the cite of Santa Ana, Countyof Orange, and Notice is hereby given that a public hearing will be held by J ran g the City Council of the City of Huntington Beach,in the Council Chambers of the Civic Center,Huntington Beach at which newspaper has been adjudged to be a the hour of 7:00 P.M.,Monday,the 18th of June,for the pur- a .pose of considering an increase in the fee for solid waste collection and disposal.It is proposed that the fee be set at newspaper of general circulation by the Superior $17.18 per residential unit of service per month,an increase of$.79 over the existing fee.The exact amount of the in- crease will be determined after the hearing,but will not ex- Court of the County of Orange, State of teed$17.18 per residential unit of service per month.A copy of the proposal is on file in the Office of the City Clerk. California,under the date of November 19, All citizens are invited to attend and provide the City Council with writt6n and oral comments and ask questions con. n- ing the proposed fee for solid waste collection and dispos- 1905, Case No.A-21046,that the notice,of al.Written communications to the City Council for or against the proposed fee increase may also be mailed to the City which the annexed is a true printed copy,has Clerk. Please contactJoan Flynn,Senior Analyst for further infor, been published in each regular and entire issue of mation at 536-5522. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access said newspaper and not in any supplement te,or treatment or employment in,City programs or activi- ties.The City of Huntington Beach is an equal opportunity thereof on the following dates,to wit: employer. ' DATED:6/05/01 City of Huntington Beach June 8 14 2001 Connie Brockway,City Clerk > > - 2000 Main Street Huntington Beach,CA 92648 "I certify(or declare)under the penalty of Telephone.536-5227 . Publish:Orange County Register,June 8,14,2001 perjury under the laws of the State of California 4670599 R-1397 that the foregoing is true and correct": Executed at Santa Ana,Orange County, California,on Date June 14,2001 at-," 0'XI" Signature The Orange County Register 625 N. Grand Ave. Santa Ana,CA 92701 (714)796-7000 ext.3002 PROOF OF PUBLICATION . I PROOF OF PUBLICATION STATE OF CALIFORNIA) . SS. County of Orange ) NOTICE OF PUBLIC HEARING I am a Citizen of the United States and a clTI of HUNTINGTON resident of the County aforesaid; I am BEACH FEE INCREASE FOR, SOLID WASTE over the age of eighteen years, and not a COLLECTION AND party to or interested in the below DISPOSAy Notice is. hereb given public hearing will be held by the City entitled matter. I am a principal clerk of that a pub the HUNTINGTON BEACH INDEPENDENT a Council of the City Huntington Beach, in the i Council Chambers of the newspa er of general circulation, printed Civic Center, Huntington Beach at the hour of and pu lished in the City of Huntington 8h oMune°o the Beach, County of Orange, State of !he g purpose of consider- in an increase in the fee for solid we, It is California, and that attached Notice is a col- lection and disposal. It true and complete copy as was printed proposed that the fee be set at $17.18 per resi- dential unit of service and published in the Huntington Beach per month, an increase of $.79 over the existing and Fountain Valley issues of said fee.Theexactamounte- the increase will be de- termined after.the hear- newspaper to wit the issue(s) of: ing,.but will not exceed $17.18- per residential unit of service per month. A copy of the proposal is on file in the Office of the City Clerk. All citizens are invited to attend and provide the June 14, 2001 City Council with written and oral comments and ask questions concern- ing the proposed fee for solid waste- collection .and disposal. Written declare, under penalty of perjury that communications the. City Council for or i against the proposed fee increase may also be the foregoing is true and correct. mailed to the City.Clerk. Please contacf:�`Joan Flynn, Senior Analyst for further information .at. 36-5522. Executed on I The The City ty of Huntington June 14 , 2nn i Beach endeavors to ac- commodate persons of at Costa Mesa, California. handicapped status. in the admission or access. to; or treatment or em- ployment. in; City pro- grams or activites. The City of 'Huntington Beach is an equal op- portunity employer. DATED: 6/05/01 City of Huntington Beach Connie Brockway, City Signature 2000 000 Main Street Huntington Beach, CA 92648 Telephone: 536-5227 Published Huntington Beach-Fountain Valley Independent June 14, 2001 663.906 V�• icy✓i� C•c. FPO: 06_o6--01 rww' o6—d8—ol 06- 14-0' Kph = �G,d-off Publish & .s�:a6_ly_o► NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH FEE INCREASE FOR SOLID WASTE COLLECTION AND DISPOSAL Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach, in the Council Chambers of the Civic Center, Huntington Beach at the hour of 7:00 P.M., Monday, the 18th of June, 2001, for the purpose of considering an increase in the fee for solid waste collection and disposal. It is proposed that the fee be set at $17.18 per residential unit of service per month, an increase of $.79 over the existing fee. The exact amount of the increase will be determined after the hearing, but will not exceed $17.18 per residential unit of service per month. A copy of the proposal is on file in the Office of the City Clerk. All citizens are invited to attend and provide the City Council with written and oral comments and ask questions concerning the proposed fee for solid waste collection and disposal. Written communications to the City Council for or against the proposed fee increase may also be mailed to the City Clerk. Please contact Joan Flynn, Senior Analyst for further information at 536-5522. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in,. City programs or activities. The City of Huntington Beach is an equal opportunity employer. DATED: 6/05/01 City of Huntington Beach Connie Brockway, City Clerk 2000 Main Street Huntington Beach, CA 92648 Telephone: 536-5227 COLMCIL ME OFROE OF THE CITY CLEW nv,.�lY 3•�,CLERK City of Hu ntington Beach Residential Refuse Rate Overview of Services • Rainbow Disposal offers residents unlimited service for household refuse. • Residents can place bundled yard trimmings at curbside without confining to a can. • Rainbow sorts and recycles your curbside refuse. This helps the city reach its 65% divers ion rate. Overview of Services •Rainbow Disposal offers two special pick- ups- of bulky householditems per residence, per year. *Rainbow Disposal participates in our community by active involvement in educational opportunities, promoting the concepts of reduce, reuse and recycle. Residential Refuse Contract The city of Huntington Beach entered into the current Franchise Agreement with Rainbow Disposal Company, Inc. in 1990. Rates are adjusted annually by a formula incorporating the Consumer Price Index (CPI), diesel fuel costs, and landfill tipping fees. Residential Refuse Rate Rainbow Disposal chose to forego their formulated increase in 1999 and 2000. For 2001 , Rainbow Disposal is requesting a monthly $.29 increase per residential account. This amount is $ .08 , less than the formula calls for. Pc MANy- oJl 99 1999 2000 (l0 Cl� Cumulative Formula Rate Actual Rates �� �;N;��';°fir"b�L�rss I I I Recommendation Staff recommends Council adopt Resolution No. 200' 1 -38, establishing the residential curbsid refuse collection rate at $ 16.68, as of July 1 , 2001 . .> "L,e ;w� CITY OF HUNTINGTON BEA..ri MEETING DATE: June 19, 2000 DEPARTMENT ID NUMBER: PW 00-49 Council/Agency Meeting Held: J -OD Deferred/Continued to: Approved ❑ Conditional) Approved ❑ De ed W- t4 Clerk's i ature Council Meeting Date: June 19, 2000 Department ID Number: PW 00-49 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION N JBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL � MI Y: RAY SILVER, CITY ADMINISTRATORO,� r EPARED BY: ROBERT F. BEARDSLEY, DIRECTOR OF PUBLIC WORK SUBJECT: APPROVE REFUSE SERVICE RATES FOR 2000/2001 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The compensation clause of the Refuse Collection and Disposal Services Franchise Agreement with the Rainbow Disposal Company, Inc., requires an annual review. Adjustments to the refuse rates are made in accordance with this review. No rate change is recommended for FY 00/01. Funding Source: Refuse service fees, Recommended Action: Motion to:(1) Retain the existing residential refuse service rate of $16.39 per month per unit of service for the time period of July 1, 2000 to June 30, 2001; and (2) Adopt the attached Exhibit A, effective July 1, 2000, as the new Exhibit A of the Refuse Collection and Disposal Services Franchise Agreement. Alternative Action(s): Deny the recommended actions. PW00-49rca -2- 6/6/00 7:56 AM REQUEST FOR ACTION MEETING DATE: June 19, 2000 DEPARTMENT ID NUMBER: PW 00-49 Analysis: The Refuse Collection and Disposal Services Franchise Agreement with the Rainbow Disposal Company, Inc., contains a provision that calls for an annual review of the monthly service fees. Under the contract, changes in compensation for each subsequent year (July 1 to June 30) are determined by a formula with three variables. The variables are the Los Angeles Area Consumer Price Index (CPI), the County of Orange landfill fee, and the local average price of diesel fuel. Following the formula, payments to Rainbow Disposal should increase 3.484% because of increases in the CPI and the cost of diesel fuel. Landfill fees are stable because of a long- term agreement with the County of Orange. The application of the formula would result in a $0.43 increase in the monthly service rate for residential customers, and a corresponding 3.484% increase for commercial customers. Despite higher costs, Rainbow has offered to waive the increase for residential and both standard and compacted commercial service customers. The only increases would be for temporary service users, and those would be well under the 3.484% allowed in the formula. Temporary services fees will increase by $1.00 per load for "Rent-A-Bins" and by $5.00 per load for "Drop Off Boxes" (see Attachment No. 1). This waiver is possible because fuel price increases appear to have leveled off. and because of a major recovery in the commodity markets for recyclable materials (seelAttachment No. 2). Environmental Status: N/A Attachment(s): City Clerk's Page Number No. Description 1. New EXHIBIT A, effective July 1, 2000. 2. Refuse Rate Certification Letter of May 19, 2000. RCA Author: Donald R. Noble PW00-49rca -3- 6/6/00 7:56 AM ATTACHMENT 1 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2000 Standard Service (shown in dollars per month): Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week 52.68 86.14 108.79 Per Week: 2 x Week 83.88 125.94 167.26 3 x Week 106.44 161.30 231.80 4 x Week 119.00 191.64 278.28 5 x Week 140.16 236.33 355.41 6 x Week 162.69 272.71 416.71 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $ 217.87 $ 335.26 $ 465.22 $ 559.06 $ 713.89 $ 837.15 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 41.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 51.00 per load 40 Yard Drop Off Box* Four (4) days $ 335.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 360.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are $15.00 each.) ATTACHMENT 2 e a � O c� DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 May 19, 2000 Mr. Dan Villella, CPA Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92647 RE: 2000 Solid Waste Disposal Rate Certification Below is the 2000—2001 Refuse Rate calculation for the City of Huntington Beach residential and commercial solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculation utilized the formula as specified in sections 11 and 12 of the Refuse Collection and Disposal Services Franchise Agreement between the City of Huntington Beach and Rainbow Disposal Co., Inc. Data Items Dump Fuel CPI Fee S/ton Price S/Gal 1996 157.7 27.00 1.130 1997 159.9 22.00 1.334 1998 161.8 22.00 1.051 1999 166.6 22.00 1.172 2000 170.6 22.00 1.415 Percentage Change CPI Dump Fee Fuel Price 2.401% 0.0% 20.7% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 100% Resultant Rate Change Factor 1.825% 0.000% 1.660% 3.484% Application of Rate Change Factor to the Residential Rate Existing Percent Rate New Rate Chancre Change Rate Rate 12.21 3.484% 0.43 12.64 Commercial Refuse Rate Change Percentage 3.484% PRINTED ON RECYCLED PAPER Mr. Dan Villella City of Huntington Beach May 19, 2000 Page 2 of 2 Supporting documents, including CPI report, fuel bills and commercial rate schedules are attached. As shown below, we are experiencing a recovery in the commodity markets for recyclable materials. Average Recyclable Commodity Price $160.00 $140.00 $120.00 0.00$8 Average Price $ Per Ton 0.00 $60.00 $40.00 $20.00 1995 1996 1997 1998 1999 2000 Year This recovery is allowing us to offset cost increases resulting from CP/as well as significant fuel cost increases. Accordingly, although the increases shown are provided by Section 11 B. of the franchise agreement, Rainbow Disposal Co., Inc. is requesting rate modification on to the Drop off Box rates of$5.00 each as well as a$1.00 increase in the Rent-A-Bin rates only. CERTIFICATION The foregoing is compl a and accurate to the best of my knowledge. Bruce Shuman, CPA Chief Financial Officer Rainbow Disposal Co., Inc. ACKNOWLEDGMENT cr Dan Villella, CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER CN RCA ROUTING 9HEET INITIATING DEPARTMENT: Public Works , SUBJECT: APPROVE REFUSE SERVICE RATES FOR 2000/2001 COUNCIL MEETING DATE: June 19, 2000 ;RCA ATTACHMENTS: 3��� .TATUS i3�3 :l „ Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorne ) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable XP;LANATION:=FOR MISSLNG ATTACH ENTS REVIEWED RETURNED" "` RWARDED.:.. Administrative Staff G Assistant City Administrator Initial City Administrator (Initial) ( d- City Clerk EXPLANAThON F,OR;;,RETURN;xOF:;ITEM Only)(Below Space For City Clerk's Use RCA Author: Donald R. Noble DPO CITY OF HUNTINGTON BEACH -rl°bye'�p0 MEETING DATE: July 6, 1999 DEPARTMENT ID NUMBER: PW 99-054 Council/Agency Meeting Held: 7-9—q'? Deferred/Continued to: 16 2,prov,ed ❑ Condifonally Approved ❑ Denied City Clerk's gignatere Council Meeting Date: July 6, 1999 Department ID Number: f-V%j 99,=n-4;r,, CITY OF HUNTINGTON BEACH REQUEST FOR ACTION -- SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: RAY SILVER, CITY ADMINISTRAT99400 VPREPARED BY: ROBERT F. BEARDSLEY, DIRECTOR OF PUBLIC WORKS (/2fK SUBJECT: MOTION TO RETAIN THE EXISTING RESIDENTIAL REFUSE RATE FOR FISCAL YEAR 1999/2000 AND ADOPT A NEW EXHIBIT A FOR COMMERCIAL REFUSE SERVICES Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The refuse collection and disposal services franchise agreement with Rainbow Disposal requires an annual review. Funding Source: Refuse service fees. Recommended Action: Motion to (1) retain the existing residential refuse service rate of $16.39 per month per unit of service for the time period of July 1, 1999 to June 30, 2000, and (2) adopt the attached Exhibit A, effective July 1, 1999, as the new Exhibit A of the refuse collection and disposal services franchise agreement. Alternative Action(s): Deny the recommended actions and direct staff on how to proceed. 99RCA17 -2- 06/23/99 11:15 AM REQUEST FOR ACTION MEETING DATE: July 6, 1999 DEPARTMENT ID NUMBER: PW 99-054 Analysis: The refuse collection and disposal services franchise agreement with Rainbow Disposal Co., Inc. contains a provision that calls for an annual review of the monthly service fees. Under the contract, changes in compensation for each subsequent year (July 1 to June 30) are determined by a formula with three variables. The variables are the Los Angeles Area Consumer Price Index (CPI), the County of Orange landfill fee, and the local average price of diesel fuel. Following the formula, payments to Rainbow Disposal should increase 3.176% because of increases in the CPI and the cost of diesel fuel. Landfill fees are stable because of a recent agreement with the County of Orange. This result is a $0.39 increase in the monthly service rate for residential customers, and a corresponding 3.176% increase for commercial customers. Despite higher costs, Rainbow Disposal has offered to waive the increase for residential customers. This would enable the City to hold to the existing monthly service rate of $16.39 per month for the new contract year. The contractual 3.176% increase would be applied only to the rubbish collection portion of commercial service accounts (see Exhibit A). The State recycling fee will remain unchanged. Commercial accounts are the responsibility of Rainbow Disposal, and are not processed by the City. The proposed Exhibit A reflects the 3.176% increase in commercial service rates allowed under the formula. This rate adjustment will be the first increase in commercial fees since 1993. Contract years 1994 through 1998 (inclusive) were all years of either no increase, or actual decreases, in the service rates. Environmental Status: N/A Attachment(s): NumberCity Clerk's Page . Description. 1. Exhibit A. 2. Refuse Rate Certification Letter of May 19, 1999. RCA Author: Donald R. Noble 99RCA17 -3- 06/23/99 11:12 AM ATTACHMENT 1 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1999, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month):* Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups Per Week: 1 X Week 52.68 86.14 108.79 2 X Week 83.88 125.94 167.26 3 X Week 106.44 161.30 231.80 4 X Week 119.00 191.64 278.28 5 X Week 140.16 236.33 355.41 6 X Week 162.69 272.71 416.71 *Contractor may make - extra charges for special or additional services in accordance with Section'8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only. Add 25% for 4 Cubic Yard. 1 X Week 2 X Week 3 X Week 4 X Week 5 X Week 6 X Week $ 217.87 $ 335.26 $ 465.22 $ 559.06 $ 713.89 $ 837.15 Temporary Service: SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 50.00 per load 40 Cu. Yd. Drop Off Box* Four (4) days $ 330.10 per load 10 Yard Drop Off Box** Four (4) days $ 355.53 per load *Highside (6 tons max.). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are $15.00 each.) ATTACHMENT 2 G d I O Z� DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 May 19, 1999 Dan Villella, CPA Director of Finance City of Huntington Beach Huntington Beach, California 92647 RE: 1999 Solid Waste Disposal Rate Certification Below is the 1999 — 2000 Refuse Rate calculation for the City of Huntington Beach residential and commercial solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculation utilized the formula as specified in sections 11 and 12 of the Refuse Collection and Disposal Services Franchise Agreement between the City of Huntington Beach and Rainbow Disposal Co., Inc. Data Items Dump Fuel CPI Fee$/ton Price$/Gal 1996 157.7 27.00 1.130 1997 159.9 22.00 1.334 1998 161.8 22.00 1.051 1999 166.6 22.00 1.172 Percentage Change CPI Dump Fee Fuel Price 2.967% 0.0% 11.5% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor -- 76% 16% 8% 100% Resultant Rate Change Factor 2.255% 0.000% 0.922% 3.176% Application of Rate Change Factor to the Residential Rate Existing Percent Rate New Rate Change Change Rate Rate 12.21 3.176% 0.39 12.60 Commercial Refuse Rate Change Percentage 3.176% PRINTED ON RECYCLED PAPER o Mr. Dan Villella, CPA Director of Finance City of Huntington Beach May 19, 1999 Page 2 of 2 Supporting documents, including CPI report, fuel bills and commercial rate schedules are attached. Although the increases shown are provided by Section 11 B. of the franchise agreement, Rainbow Disposal Co., Inc. is requesting rate modification only in commercial and drop-off body service rates. CERTIFICATION The foregoing is com lete and accurate to the best of my knowledge. 4< Bruce Shuman, CPA Chief Financial Officer Rainbow Disposal Co., Inc. ACKNOWLEDGEMENT Dan Villella, CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER IS C'I• Y R ),E COLLEC7.TIal► T Rainbow Disposal is the exc l us ive refuse haL dJer in the City !,Rainbo`v.Disposal collects alb reside ' al and conunercial reffise Service fees, are reviewed an wally . 2 • � 40 KAI e rate forte la is b�as�ed,on the fouowin `crteria: ge in the`Consm,er..Price In dex I� ' ge in, e cost of diesel fuel :..., Chahge in the``Or'ange`County landfill fees .. 3 • 1 � • Residenf al rates should be increased .0.39 per month per residential ujt • Commerci l, rates should be increased `31176% per.month per, customer, RAINBOW DISPOSAL REQUESTSRATE - • The residential rate increasehas been RECOMMENDATION waived, remaining at $16:39 per month . - - per residential.unit - .The monthly rate for commercial services will increase 3.176% (first . ; increase since 1993) - • Retain they existing monfhly residential service rater'of $16.39 per unit of service for the time period July 1, 1999 to- Jtu�-e 30, 2000 - � Adopt the increased commercial ser�.- ee :' : rate shown. on Exhibit A, effective ILl � 1, 1999 . 5 -De, ..l1TY OF HUNTINGTON BEAC MEETING DATE: June 15,1998 DEPARTMENT ID NUMBER: PW98-25 Council/Agency Meeting Held: 1, f i Sf 9 S Deferred/Continued to: ❑ Approved ❑ Conditionally Approved ❑ Denied A-aJ ra--mil 0— a <-10-4-y City Clerk's Signature Council Meeting Date: June 15,1998 Department ID Number: PW98-25 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION 7le's �" SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL ti ' � rya <C, *� PREPARED ITTED BY: RAY SILVER, CITY ADMINISTRATOR 02/0 r BY: ROBERT J. FRANZ, DEPUTY CITY ADMINISTRAT �� DARYL D. SMITH, ACTING DIRECTOR OF PUBLIC WOR §j �,) SUBJECT: APPROVE THE 1998-99 RESIDENTIAL REFUSE RATE Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The refuse collection and disposal services franchise agreement with Rainbow Disposal calls for an annual adjustment in compensation based on a formula contained in the agreement. Funding Source: Refuse service fees. Recommended Action: Motion to reduce the existing monthly refuse service collection and disposal charge to residents by $0.10 from $16.49 to $16.39 per month. Alternative Action(s): Retain the existing service rate of $16.49 per unit of service per month until the management audit of the Refuse Fund I now underway, is completed. Analysis: The existing refuse services agreement with Rainbow Disposal calls for an annual review of the residential service rate. A change in' compensation for each contract year (July 1 to June 30) is determined by a formula with three variables. They are the Los Angeles Area Consumer Price Index, the County of Orange landfill fee, and the local average price of diesel fuel. Under the formula, the amount due the contractor in the new year (July 1, 1998 to June 30, 1999) will decrease by 0.791% because of a fall in the price of diesel fuel. This means that the amount due the contractor will decline from $12.31 per unit/month to $12.21, a saving of , $0.10 per unit/month which can be used to lreduce the City service rate to residential customers. 98RCA25.doc -2- 06/08/98 3:19 PM REQUEST FOR ACTION MEETING DATE: June 15,1998 DEPARTMENT ID NUMBER: PW98-25 However, this proposal is not without consequence. On August 4, 1997, Council reduced the residential refuse rate by $0.06 per unit per month. Accordingly, there will be a year end refuse budget shortfall of approximately $60,000. Although another rate reduction would result in an additional shortfall, the $16.49 (i. e. current monthly rate) is now being reviewed by the outside accounting firm of Moreland and Associates, and could be subsequently modified. Additionly, this recommended decrease does not address the large number of fee exempt Senior Citizens (529) and the existing delinquent accounts. The current residential rate is $16.49 per unit-of-service per month. The elements of this charge are $12.31 for collection and disposal (paid to Rainbow), $3.00 for recycling (also Rainbow), $0.15 for the AB-939 Public Education mandate (retained by the City), and a $1.03 City service fee (for personnel, billing, computer usage, collection services, contract management, and overhead costs). The proposed new rate of$16.39 will impact only the "collection and disposal" category. The other segments (which are not governed by the contract) will remain unchanged. Environmental Status: N/A Attachment(s): City Clerk's . - Number No. Description 3 1. Rate Certification Letter of May 29, 1998. V , 2. Resolution Establishing A Residential Refuse Rate. 3. Refuse Collection Cost Analysis Memo, RCA Author: Daryl Smith/Don Noble 98RCA25.doc -3- 06/08/98 3:19 PM G d � U n DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 May 29, 1998 Dan Villella, CPA Director of Finance City of Huntington Beach .Huntington Beach, California 92647 RE: 1998 Solid Waste Disposal Rate Certification Below is the 1998— 1999 Refuse Rate calculation for the City of Huntington Beach residential solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculation utilized the formula as specified in section 11 of the Refuse Collection and Disposal Services Franchise Agreement between the City of Huntington Beach and Rainbow Disposal Co., Inc. Data Items Dump Fuel CPI Fee$/ton Price$/Gal 1996 157.7 27.00 1.130 1997 159.9 22.00 1.334 1998 161.8 22.00 1.051 Percentage Change CPI Dump Fee Fuel Price 1.188% 0.0% -21.2% Application of Weighting Percentage , CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 100% Resultant Rate Change Factor 0.903% 0.000% -1.694% -0.791% Application of Rate Change Factor Existing Percent Rate New Rate Change Change Rate Rate 12.31 -0.791% (0.10) 12.21 PRINTED ON RECYCLED PAPER A RESOLUTION NO. 98-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A RESIDENTIAL CURBSIDE REFUSE COLLECTION RATE WHEREAS, pursuant to Huntington Beach Municipal Code Section 8.20.015, the City Council shall establish curbside residential refuse collection rates for "basic level of service" as defined in the Huntington Beach Municipal Code Section 8.20.010(a) and "unit of service" as defined in Section 8.20.010(k), NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. That the monthly rate for curbside residential refuse collection for basic level of service be $16.39 per unit of service. This rate shall take effect on all billings dated after July 1, 1998, prorated for service from and after July 1, 1998. 2. That this charge for residential curbside collection will be combined with the residential water billing process. 3. That partial payments shall be applied to outstanding balances in the following manner: a. Towards all penalties and interest due the City; and b. Should a portion of the payment remain, it shall be applied towards outstanding refuse charges, and C. Should a portion of the payment remain, it shall be applied towards outstanding water utility tax balances, and d. If the account is a member of the Fire Med Service program, any remainder shall be applied toward this program, and e. Should a portion of the payment remain, it shall be applied towards water service charges. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 15th day of 1998 &4-1�1 zLtM7116) . ATTEST: Mayor City Clerk APPROVED AS TO FORM: REVIEWED AND APPROVED: City Attorney �lyl'1S t-s-Yy INITIA ED AND APP -VED: City ministrator 8 Director f Public Works jmp/k/resolution/refuse 1/6/4/98 Res. No. 98-51 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 15th day of June, 1998 by the following vote: AYES: Julien, Harman, Green, Dettloff, Bauer, Sullivan, Garofalo NOES: None ABSENT: None City Clerk and ex-offici Jerk of the City Council of the City of Huntington Beach, California G/resol uti/resUpg/97-80 1 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1997, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month):* Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups Per Week: 1 X Week 51.53 84.26 106.39 2 X Week 82.07 123.25 163.65 3.X Week 104.17 157.92 226.93 4 X Week 116.51 187.68 272.56 5 X Week 137.24 231.46 348.08 6 X Week 159.31 267.11 408.14 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only. Add 25% for 4 Cubic Yard.): 1 X Week 2 X Week 3 X Week 4 X Week 5 X Week 6 X Week $ 212.84 $ 327.53 $ 454.49 $ 546.16 $ 697.43 $ 817.84 Temporary Service: SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 50.00 per load 40 Cu. Yd. Drop Off Box* ' Three (3) days $ 324.65 per load 40 Cu. Yd. Drop Off Box* Five (5) days $ 354,65 per load 10 Yard Drop Off Box** Three (3) days $ 350.40 per load 10 Yard Drop Off Box** Five (5) days $ 383.40 per load *Highside (6 tons max.). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. CERTIFICATION The foregoing is complete and accurate to the best of my knowledge. r Bruce Shuman, CPA Chief Financial Officer Rainbow Disposal Co., Inc. ACKNOWLEDGEMENT Dan Villella, CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER L`.a City of Huntington Beach REFUSE COLLECTION SERVICE 1997/98 Estimated Expenses and Revenue 1997/98 Estimates Monthly Cost per Residential Unit Paid by Paid by Full Cost Refuse Fund Full Cost Refuse Fund EXPENSES Collection costs- Rainbow Disposal $6,582,403 $6,582,403 $12.31 $12.31 Recycling costs- Rainbow Disposal 1,604,160 1,604,160 3.00 3.00 Public Education 80,208 80,208 0.15 0.15 Uncollectable Amounts: Senior Citizen Exemptions (560) 110,813 110,813 0.21 0.21 Vacancies (104) 20,580 20,580 0.04 0.04 Bad Debt(0.5%) 44,088 44,088 0.08 0.08 Personnel (Public Works) (1) 474,957 181,488 0.89 0.34 Billing/Collection/Overhead (2) 391,448 250,000 0.73 0.47 Street Infrastructure Costs (3) 1,266,244 0 2.37 0.00 Other 4.650 4,650 0.01 0.01 Total Expenses $10,579,550 $8,878,389 $19.79 $16.60 REVENUE from Refuse Service Users Residential Service Billings $8,817,533 $16.49 1997198 Estimated Budget SHORTFALL ($60,856) (Based on 44,560 customers) 1)The August 1991 MSI study documented Public Works Department costs of$474,957 related to Refuse Collection services. Currently, only the costs itemized on the next page ($188,354) are being charged to the Refuse Collection Fund. The balance of the costs are being paid by the General Fund. 2) Includes cost of postage, mail handling, computer billing system, City Treasurer Department collection, accounting, printing, paper, envelopes, etc. for monthly billing for 44,000 customers. The total City cost for these services exceeds$250,000. The MSI study documented costs of$391,448. The excess is paid by the General Fund. 3) Proportinate cost of street infrastructure repair that is attributable to the Refuse Collection Service. The use of City streets by the refuse contractor causes damage to streets due to both normal use and the extra weight/damage due to heavier than normal vehicles using City streets on a regular basis. G:\BOB\SPRDSHT\REFUSE.XLS]Update 8-97 Print Date 3/30/98 Q or a p eJ Council/Agency Meeting Held: LziSl9 8 Deferred/Continued to: ((Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signature Council Meeting Date: June 15, 1998 Department ID Number: PW98-26 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION Q SUBMITTED TO: HONORABLE AND MAYOR AND CITY COUNCIL 4EMBERS 4., RE�PARED TED BY: RAY SILVER, CITY ADMINISTRATOR a°� BY: ROBERT J. FRANZ, DEPUTY CITY ADMINISTRAT n DARYL D. SMITH, ACTING DIRECTOR OF PUBLIC �y SUBJECT: APPROVE 1998-99 COMMERCIAL REFUSE RATES Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The refuse collection and disposal services franchise agreement with Rainbow Disposal calls for an annual adjustment in compensation based on a formula contained in the agreement. Funding Source: None. No funds required. Recommended Action: Motion to adopt the attached Exhibit A, effective July 1, 1998, as the new Exhibit A of the Refuse Collection and Disposal Services Franchise Agreement. Alternative Action(s): Disapprove the Exhibit and retain the existing fee schedule. Analysis: The existing refuse services agreement with Rainbow Disposal calls for an annual review of commercial service rates. Compensation changes for each subsequent year (July 1 to June 30) are determined by a formula with three variables. They are the Los Angeles Area Consumer Price Index (CPI), the County of Orange landfill fee, and the local average price of diesel fuel. Under the formula, service rates for the new year 1998-99 (July 1, 1998 to June 30, 1999) will decrease by 0.791% because of a fall in price of diesel fuel. The formula has three factors: the CPI increased by 1.188%, the landfill fee remained stable at $22.00 per ton, and diesel fuel decreased by 1.694% resulting in the overall reduction of 0.791% in the rate schedule. Environmental Status: Categorically exempt. . 1 4 � v REQUEST FOR ACTION MEETING DATE: June 15, 1998 DEPARTMENT ID NUMBER: PW98-26 Attachment(s): City Clerk's Page Number No. Description 1. 1 New EXHIBIT A of the Refuse Services Agreement. RCA Author: Daryl Smith/Don Noble 98RCA26.doc -2- 06/08/98 9:22 AM ATTACHMENT 1 ' graved 4-15-0 EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1998, 1N THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month):* Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups Per Week: 1 X Week 51.14 83.63 105.59 2 X Week 81.46 122.35 162.43 3 X Week 103.41 156.79 225.29 4 X Week 115.67 186.35 270.64 5 X Week 136.26 229.82 345.63 6 X Week 158.18 265.24 405.21 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only. Add 25.% for 4 Cubic Yard.): 1 X Week 2 X Week 3 X Week 4 X Week 5 X Week 6 X Week $ 211.18 $ 324.86 $ 450.58 $ 541.28 $ 691.26 $ 810.54 Temporary Service: SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 50.00 per load 40 Cu. Yd. Drop Off Box* Four (4) days $ 324.65 per load 10 Yard Drop Off Box** Four (4) days $ 350.40 per load *Highside (6 tons max.). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are $15.00 each.) (17) 08/04/97 - Council/Agency Agenda - Page 17 H-5. Submitted By Council/Agency Member Mayor Ralph Bauer A. (City Council)Appointment Of City Councilmember Sullivan To Council Subcommittee On Affordable Housing (120.25) Recommended Action: Approve appointment of Councilmember Sullivan to serve on the Council Subcommittee on Affordable Housing with Mayor Bauer and Mayor Pro Tern Dettloff. [Deferred to +8118197] B. (City Council) Request For A New Adult Business Ordinance (120.90) Communication from Mayor Bauer dated July 29, 1997 requesting a review of the standards and current restrictions of the city's Adult Business Ordinance. It is recognized that any new ordinance limiting locations for adult businesses cannot be retroactive. However, it is desirable for a family-oriented city like Huntington Beach to review its standards and current restrictions. Recommended Action: Motion to: That the staff return to the Council by a date certain with a new ordinance which takes into account the variety of activities pursued by families and children including schools, churches, health care organizations, and other appropriate venues in determining allowable distances. The new ordinance must of course be reviewed for constitutionality. [Approved 7-0] C. (City Council) Communication from Mayor Bauer-Request For Reconsideration Of Fate Of$0.06 Trash Fee Relative To Council Action Taken On 7/21/97 As Indicated Below: (600.45) (City Council) Resolution No. 97-49- Reduction Of Existing Residential Refuse Service Rates Rainbow Disposal Refuse Collection Franchise Agreement (600.45) Communication from the Public Works Director dated July 21, 1997 regarding the Annual Review of Service Rates required by the Refuse Collection Franchise Agreement with Rainbow Disposal Recommended Motion: jene 39,998- and 2. Adopt the attached Exhibit A, effective July 1, 1997, as the new Exhibit A to the Refuse Collection Franchise Agreement. [Adopted Exhibit"A"Also keep rate stable but apply 6 cents to any future rate increase --5-2 (Harman, Sullivan -- NO)] Recommended Action: A. Motion to reconsider. B. Motion to return $0.06 to the residents. [(1) Motion to return 6 cents + 46 cents (from last year) failed 3-4 (Bauer, Dettloff, Green, +Julien -- No) (2) Adopted Res. No. 97-49 to return 6 cents to residents -Also retained Exhibit (17) Res. No. 97-49 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-oflicio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 4th day of August, 1997 by the following vote: AYES: Julien, Harman, Dettloff, Bauer, Sullivan, Green, Garofalo NOES: None ABSENT: None City Clerk and ex-off cio Clerk of the City Council of the City of Huntington Beach, California G/resoluti/resbkpg/97-39 Fes.- . j - DP cli o — vpt-j CITY OF HUNTINGTON BEACH 9-1- CITY COUNCIL COMMUNICATION -4e TO: Connie Brockway, City Clerk FROM: Ralph Bauer, Mayor DATE: August 1, 1997 SUBJECT: H ITEM FOR AUGUST 41, 1997 1 would like to make a special request to be placed on the August 4, 1997, Council Agenda under my H items. 1. Reconsideration of fate of$0.06 trash fee a) Move to reconsider b) Move to return $0.06 to the residents RB:paj xc: City Council Members Mike Uberuaga, City Administrator Cj 1 � (18) 08/04/97 -Coun ciliHgency Agenda - P 18 H-5. Submitted B Council/AgencyMember Mayor Ralph Bauer A. C i nt Of CityCouncilmember Sulliva o tee On AffordabkKousing Recommended on: Approve appointment of Co ilmember Sullivan to serve on the Council Subcommittee ffordable Housing with ayor Bauer and Mayor Pro TernDettloff: [Deferred to +81181971 B. (CityCouncil Request For A New dult Busi s Or Communication from Mayor Bau dated July 29, 199 equesting a review of the standards and current restrictions of the 's Adult Business Ordina e. It is recognized that any new ordinance limiting location.wfor adult businesses cannot be redbactive. However, it is desirable for a family-o ' nted city like Huntington Beach to review standards and current restrictions. Recommend Action: Motion to: That the s return to the Council by a date certain with a new ordinance whi akes into accoun a variety of activities pursued by families and children including schools, c�ances. s, health care organizations, and other appropriate venues in determining allowable The new ordinance must of course be reviewed for constitutionality. [Approved 7-0] C. (City Council) Communication from Mayor Bauer-Request For Reconsideration Of Fate Of$0.06 Trash Fee Relative To Council Action Taken On 7/21/97 As Indicated Below: (City Council) Resolution No. 97-49- Reduction Of Existing Residential Refuse Service Rates Rainbow Disposal Refuse Collection Franchise Agreement (600.45) Communication from the Public Works Director dated July 21, 1997 regarding the Annual Review of Service Rates required by the Refuse Collection Franchise Agreement with Rainbow Disposal Recommended Motion: dune 30, 1998- and 2. Adopt the attached Exhibit A, effective July 1, 1997, as the new Exhibit A to the Refuse Collection Franchise Agreement. [Adopted Exhibit"A"Also keep rate stable but apply 6 cents to any future rate increase--5-2 (Harman, Sullivan --NO)] LRecommended Action: A. Motion to reconsider. B. Motion to return $0.06 to the re ((1) otion to return 6 cents +46 cents (from last year) failed 3-4 (Bauer, Dettloff, Green, +Julien -- No) (2) Adopted Res. No. 97-49 to return 6 cents to residents.-Also retained Exhibit "A"-- 7-0] (18) CITY OF HUNTINGTON BEA H MEETING DATE: July 21, 1997 DEPARTMENT ID NUMBER: PW97-421 Council/Agency Meeting Held: (000-45 Deferred/Continued to: b KAproved ❑ Conditionally Approved ❑ Denied City Clerk's gnature o tall Council Meeting Date: Jul 21, 199 De p rt nt lU Number: PW97-421 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL '-�4B TIED BY: MICHAEL T. UBERUAGA, CITY ADMINISTRATO UP EPARED BY: LES M. JONES II, DIRECTOR OF PUBLIC WORKS 0090 �y SUBJECT: ADOPTION OF REFUSE RATES - `n- Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: The Refuse Collection Franchise Agreement with Rainbow Disposal contains a provision requiring an annual review of service rates. Funding Source: Refuse service fees. Recommended Action: - e-E'xlSt� rp ea#ial�-ef�se=Ser-Vtc� r per-� k nit-&=ser_vt ©Mhe4 9 1�ne-- ,_1 (2) adopt the attached Exhibit A, effective July 1, 1997, as the new Exhibit A of the Refuse Collection Franchise Agreement. Alternative Action(s): 1. Retain the existing residential refuse service fee of $16.55 per unit/month which will balance the 97-98 refuse budget. �.. 421 RCA.DOT -2- 07/09/97 9:29 AM REQUEST FOR ACTION MEETING DATE: July 21, 1997 DEPARTMENT ID NUMBER: PW97-421 2. Disapprove the proposed Exhibit A and retain the commercial fee schedule adopted on June 17, 1996. Analysis: Our refuse services agreement calls for an annual review of the monthly unit of service payment due the contractor, Rainbow Disposal. Under the contract, changes in compensation for each subsequent year (July 1 to June 30) are determined by a formula with three variables. The variables are the Los Angeles Area Consumer Price Index (CPI), the County of Orange landfill fee, and the local average price of diesel fuel. Under the refuse contract formula, payments to Rainbow will decrease 2.963% because of a landfill fee reduction. But , increases in the CPI and diesel fuel costs will cause a 2.503% increase in payments to Rainbow. The net result is a 0.460% decrease for the 1997-98 contract year. Therefore, because of a lowering of landfill fees from $27.00 to $22.00 per ton by the County, a decrease in Rainbow's compensation will occur. The new residential service rate due Rainbow for collection and disposal (not including recycling) will be $12.31 per unit of service per month, a reduction of $0.06 from the old rate of $12.37 per month (see Attachment 1). Staff has recommended reducing, rather than retaining, the $0.06 per unit/month saved under the contract . This is because the commercial rates (see Attachment 2) are being reduced, in accordance with the formula, and it may be perceived as unfair for commercial rates to be reduced while the residential rate remained the same. However, this proposal is not without consequence. Because the FY 97-98 residential refuse budget proposal is balanced at the existing rate of $16.55, a reduction of $0.06 will move that budget into a deficit position for the year. It will also contribute to enlarging the accumulated deficit of the Refuse Fund. The elements of the City residential refuse rate are $12.37 for collection and disposal (paid to Rainbow), $3.00 for recycling (also Rainbow), $0.15 for the AB-939 Public Education mandate (retained by the City), and $1.03 for the City service fee (for personnel,, billing, computer usage, collection services, contract management, and overhead costs). These charges account for the current (1996-97) $16.55 per unit/month refuse rate. By lowering the current fee by $0.06 per unit/month, to $16.49, the City will forfeit approximately $31,680 in revenue. But the Refuse Fund will be unable to adjust by reducing expenditures because service costs are fixed. Thus, a deficit will continue to accrue. 421 RCA.DOT -3- 07/09/97 9:29 AM REQUEST FOR ACTION MEETING DATE: July 21, 1997 DEPARTMENT ID NUMBER: PW97-421 Environmental Status: Categorically exempt. Attachment(s1: City Clerk's . - NumberDescription 1. Rate Certification Letter of June 11, 1997. 2. Exhibit A: Commercial Service Rates. 3. Resolution Establishing A Curbside Refuse Collection Rate. RCA Author: 421RCA.DOT -4- 07/09/97 9:29 AM ATTACHMENT 1 a � O Z, DISPOSAL CO., INC. P.O. BOX 1026 • HUNTINGTON BEACH, CA 92647-1026 • PH: (714) 847-3581 FAX: (714) 841-4660 June 11, 1997 L Dan Villella, CPA Director of Finance City of Huntington Beach cop Huntington Beach, California 92647 RE:1997 Solid Waste Disposal Rate Certification Below is the 1997 — 1998 Refuse Rate calculation for the City of Huntington Beach residential solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculation utilized the formula as specified in Section 11 of the Refuse Collection- and Disposal Services Franchise Agreement between the City of Huntington Beach and Rainbow Disposal Co., Inc. Data Items Dump Fuel CPI Fee$/ton Price $/Gal 1996 157.7 27.00 1.130 1997 159.9 22.00 1.334 Percentage Change CPI Dump Fee Fuel Price 1.395% -18.5% 18.0% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 100% Resultant Rate Change Factor 1.060% -2.963% 1.443% -0.460% Application of Rate Change Factor Existing Percent Rate New Rate Change Change Rate Rate 12.37 -0.460% (0.06) 12.31 PRINTED ON RECYCLED PAPER a Mr. Dan Villella, CPA f June 11, 1997 Page 2 CERTIFICATION The4oregoing is complete and-accurate to the best of my knowledge. Bruce Shuman, CPA Chief Financial Officer Rainbow Disposal Co., Inc. ACKNOWLEDGMENT Dan Villella, CPA Director of Finance City of Huntington Beach PRINTED ON RECYCLED PAPER ATTACHMENT 2 b EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1997, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month):* Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups Per Week: 1 X Week 51.53 84.26 106.39 2 X Week 82.07 123.25 163.65 3 X Week 104.17 157.92 226.93 4 X Week 116.51 187.68 272.56 5 X Week 137.24 231.46 348.08 6 X Week 159.31 267.11 408.14 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipai Code. Compacted Service (3 Cubic Yard Only. Add 25% for 4 Cubic Yard.): 1 X Week 2 X Week 3 X Week 4 X Week 5 X Week 6 X Week $ 212.84 $ 327.53 $ 454.49 $ 546.16 $ 697.43 $ 817.84 Temporary Service: SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 50.00 per load 40 Cu. Yd. Drop Off Box* Three (3) days $ 324.65 per load 40 Cu. Yd. Drop Off Box* Five (5) days $ 354.65 per load 10 Yard Drop Off Box** Three (3) days $ 350.40 per load 10 Yard Drop Off Box** Five (5) days $ 383.40 per load *Highside (6 tons max.). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. ATTACHMENT 3 RESOLUTION NO. q 7 Y I A RESOLUTION OF THE CITY COUNCIL OF T/RAS CITY OF HUNTINGTON BEACH ESTABLISHI RESIDENTIAL CURBSIDE REFUSE COLLECTION WHEREAS, pursuant to Huntington Beach Municipal Code Se hon 8.20.015,the City Council shall establish curbside residential refuse collection rat710(a) r"basic level of service" as defined in the Huntington Beach Municipal Code Section 8.201and"unit of service" as g p defined in Section 8.20.010(k), NOW, THEREFORE, the City Council of the ity of Huntington Beach does hereby resolves as follows: 1. That the monthly rate for curbsi a residential refuse collection for basic level of service be $16.49 per unit of service. This rate shall take effect on all billings dated after July 1, 1997, prorated for service from and after my 1, 1997. 2. That this charge for re :dential curbside collection will be combined with the residential water billing process. 3. That partial pay ents shall be applied to outstanding balances in the following manner: A. Towards penalties and interest due the city, and B. Should portion of the payment remain, it shall be applied towards outstanding refuse charges, and C. S ould a portion of the payment remain, it shall be applied towards outstanding water utility t balances, and D. If the account is a member of the Fire Med Service program, any remainder shall be applied toward this program, and 1 &4:97resolutions:refuse1 7/8/97 E. Should a portion of the payment remain, it shall be applied towards water se ce charges. PASSED AND ADOPTED by the City Council of the City of Huntington'each at a regular meeting held thereof on the 21 st day of July, 1997. Ma, or ATTEST: APPROVED 4TO FORM: City Clerk �,v City Atto ey REVIE AND APPROVED ND PR VED: City Administrator irector of Public orks 2 g:4:97resolutions:refuse 1 7/8/97 REEVED FROM JJ2- °-r AND MADE A PART OF THE RECORD AT THE @QUNCIL MEETING OF -� 7 OFFICE OF THE CITY CLERK C@NNIE BROCKWAY,CITY CLERK 444444 444444 44 44 44 44 44 44 Refuse Service Rate City of Huntington Beach 4 4 4 4 4 4 4 444444 444444 4444 4 44 44 Refuse Rate Formula 44 44 ■ Established under contract ■ Reviewed annually ■ Formula components are weighted - Consumer Price Index (CPI) 76% - Diesel fuel costs 8% - Landfill fees 16% 4 4 4 4 4 4 4 444444 1 RECEIVED FROM AND MADE A PART OF THE RECORD AT THE COUNCIL MEETING OF • 2',)4-�? OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK 444444 4Q4444 44 QQ QQ Monthly Refuse Service Rate 44 Residential Service Only (Curbside trash collection) Current Rate" $ 16. 55 Proposed Rate 16.49 Rate Decrease $0.06 Rate includes collection, recycling, AB939 education, city administrative 4 services 4 4 4 M9M 2 (13) 07/21/97 -Counci*ncy Agenda - Page 13 F. Administrative Items F-1. (City Council) Resolution No. 97-49 - Reduction Of Existing Residential Refuse Service Rates Rainbow Disposal Refuse Collection Franchise Agreement (600.45) Communication from the Public Works Director dated July 21, 1997 regarding the Annual Review of Service Rates required by the Refuse Collection Franchise Agreement with Rainbow Disposal Recommended Motion: 4— . and 2. Adopt the attached Exhibit A, effective July 1, 1997, as the new Exhibit A to the Refuse Collection Franchise Agreement. [Adopted Exhibit "A"Also keep rate stable but apply 6 cents to any future rate increase -- 5-2 (Harman, Sullivan -- NO)] F-2. (City Council) Report Regarding Compliance With Proposition 218 Rules - Relative to City Taxes, Assessments, Fees, & Charges & Review And Documentation Of Apphomiate General Fund Charges To The Water Fund (310.20) Communica ' from the Deputy City Administrator-Administrative Services regarding compliance with Pr sition 218 rules relative to all city taxes, assessments, and fees or charges. Recommended Motion: 1. Receive and file report on State osition 218. and 2. Request staff to further review and document apI ropria eneral Fund charges to the Water Fund. [Continue to 814197] (13) ,'Y OF HUNTINGTON BEACR MEETING DATE: March 17, 1997 DEPARTMENT ID NUMBER: Council/Agency Meeting Held: 31i-7L9-7 pD' Deferred/Continued to: d'Approved ❑ Conditionally Approved ❑ Denied, V City Clerk's Si ature Council Meeting Date: March 17, 1997 Department ID Number:. CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator _ f PREPARED BY: Ray Silver, Assistant City AdministratorQe,.,P „z.-<C7m n�,r< W z. rn rn SUBJECT: Approval of Agreement between the County of Orange and the-Git4 T' for Waste Flow Control 3 3 9 Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) STATEMENT OF ISSUE The cities in Orange County and the county itself are interested in maintaining public ownership of the landfill disposal system. In order to assure this, the county is working to contain their costs and establish adequate and predictable revenues to pay their bills. 'The cities in the county are working to establish predictable gate fees at the lowest possible cost for disposing of solid waste coming from their respective city. The purpose of this agreement is to attain these objectives. Otherwise the county will pursue consideration of sale of the landfill system. RECOMMENDATION 1. Approve the Waste Disposal Agreement between the County of Orange and-the City of Huntington Beach and authorize the Mayor and City Clerk to execute the agreement. 2. Approve the Franchise Hauler Acknowledgment between the City of Huntington Beach and Rainbow Disposal and Rainbow Transfer and Recycling Companies and authorize the Mayor and City Clerk to execute the acknowledgment. , 0023394.01 -2- 03/06/97 10:15 AM RL..WEST FOR COUNCIL ACTIL . MEETING DATE: March 17, 1997 DEPARTMENT ID NUMBER: 3. Introduce and adopt Ordinance No .33q approving Supplement No. 2 to Refuse Collection and Disposal Services Franchise Agreement by and between the City of Huntington Beach and Rainbow Disposal and Rainbow Transfer and Recycling Companies and authorize the Mayor and City Clerk to execute same. ANALYSIS Since the late 1980's, the County's Integrated Waste Management Department and the cities in the county have been exploring an agreement which would require the cities to direct their waste stream to the county's landfill system in exchange for a fixed gate fee. In the early 1990's attempts to effectuate such an agreement broke down over a variety of issues after negotiations on a lengthy and detailed agreement. In 1995, the county increased their gate fee (also known as tipping fees) for each ton of trash from $22.75 to $35 in response to fewer tons deposited in the landfill system due to AB 939's recycling mandates and increased operating costs due to federal and state environmental mandates. As a result of this action, our city's costs for landfill disposal of residential refuse increased substantially and our city and others in the county began taking trash to alternative disposal sites. As a result of this further loss in volume, the county in March 1996 lowered their trash rate to its current level of$27 per ton. These fluctuations in the landfill gate .fee, coupled with the County's bankruptcy and the initiation of importing refuse from outside Orange County, resulted in the county's exploration of whether they should remain in the landfill business or sell the system and exit the business altogether. Due to the complexity of the issue, the County Board of Supervisors early last year retained A.G. Edwards & Sons and Alexander Brown & Sons to prepare a report on the strategic alternatives available to the county and then assess the relative viability and time to carry out an alternative. Three basic alternatives were identified in the report: 1) sell the system and exit the business; 2) retain the system without agreements with cities; and 3) or retain the system with agreements with cities. A small group of City Managers within the county were appointed to review the study and recommend which alternative would be in the best interests of cities. This group, the Solid Waste Working Group (SWWG), identified three primary city interests which guided our discussions. These city interests included: a stable and reliable gate fee, long term disposable capacity of county residents, and continued high quality environmental operation of the landfills to protect public health and safety. The conclusion of the SWWG was that these objectives could best be achieved by continued county ownership of the system with long term agreements with the cities to give certainty to the county revenue stream and the gate fee paid by cities and ultimately the taxpayer. The SWWG retained an independent consultant, Hilton Farnkopf and Hobson.of Newport Beach, to review the study prepared by the county as to the accuracy of its assumptions, particularly the forecasts for in-county refuse volumes/out-of-county import volumes/and attending financial impacts prior to coming 0023394.01 -3- 03/06/97 4:16 PM RL-,2UEST FOR COUNCIL ACTT_ A MEETING DATE: March 17, 1997 DEPARTMENT ID NUMBER: to our final conclusions on the county's strategic alternatives analysis. The Orange County Division of the League of Cities concurred with the recommendation to retain the system and the County Board of Supervisors agreed on November 20, 1996 to give cities 90 days, or March Vto enter into a long term agreement with the county. At the end of 90 days, if the parties were unable to reach agreement, then the county would proceed to sell the landfill system. With a short time frame to negotiate a complex and challenging agreement which had failed in the past, the SWWG and county IWMD staff negotiated an MOU which included the major deal terms. The MOU was reached on Christmas Eve 1996 and was subsequently approved by the Orange County Division of the League of Cities. Since the first of the year, a subcommittee of the SWWG including representatives from the Orange County City Managers' SWWG and the Orange County City Attorneys' Association have been negotiating the detailed agreement which comports to the terms of the MOU. In early February, agreement was reached by the negotiators on a Waste disposal Agreement. The agreement will now be presented to all the cities for action prior to consideration by the board of supervisors. The deadline to act on the agreement has been extended to March 30 to give cities sufficient time to review the document. Last week, a joint meeting of the City Managers and City Attorneys was conducted to review the document and answer questions. A few minor issues were addressed which resulted in several changes to the final document which is attached for your review. The proposed agreement between the County of Orange and the cities within Orange County, who are willing to guarantee waste flow control, will contain the following deal points: 1. A ten (10) year fixed gate fee rate of $22 as opposed ,to the existing $27 [Section 4.2 (a)]. Pg 19 2. City of Huntington Beach guarantees to have 100% of its waste delivered to the county [Section 3.1 (a)]. Pg 12 3. Contract rate can be adjusted for defined reasons [Section 4.2] Pg 19: a. uncontrollable circumstances b. inflation in excess of 4% C. costs to remediate conditions under CERCLA d. tonnage shortfalls 4. Procedure for rate adjustment [Section 4.2 (g)]. Due process procedure if participating cities with more than 50% of the county acceptable waste dispute the county rate adjustment. Pg 21 0023394.01 -4- 03/10/97 11:46 AM RE%,cUEST FOR COUNCIL ACTIC... MEETING DATE: March 17, 1997 DEPARTMENT ID NUMBER: 5. If actual in-county tonnage falls below the cumulative target, the county may utilize certain remedies in the following priority [Section 4.2 (b)] Pg 19: a) reduce costs b) increase imported tonnage c) use unrestricted reserves d) adjust in-county rates e) terminate this agreement f) exit the landfill system 6. County may import waste tonnage adequate to receive at least $15 million per year [Section 3.6 (c & e)]. Pg 17 & 18 7. If import tonnage falls below the targeted amount to achieve $15 million per year, the following remedies will be utilized in the following priority [Section 4.2 (c)] Pg 20: a) reduce costs b) increase net import tonnage c) use unrestricted and/or restricted reserves d) adjust in-County rates e) terminate this agreement 8. Availability of contracts to other parties - sanitary districts, MRF's and transfer station operators, and haulers for waste not subject to city franchise agreements, who are willing to commit 100% of their waste stream shall be offered the same terms. Rates for non-contract customers - a separate and higher rate will be offered to them. [Section 3.6 (a & b)] Pg 17 9. County to provide CERCLA indemnification as an "arranger" of municipal solid waste [Section 7.3]. Pg 32 The County Board of Supervisors and the Orange County League of Cities have agreed to have agreements in place in enough of the agencies to attain the minimum in-county tonnage by March 31, 1997. In order for the City of Huntington Beach to comply with the Waste Disposal Agreement, it is necessary to amend the Franchise Agreement with Rainbow Disposal. Staff has negotiated the attached Supplement No. 2 to the Refuse Collection and Disposal Services Franchise Agreement with Rainbow Disposal and Rainbow Transfer and Recycling Companies. FUNDING SOURCE Not Applicable. 0023394.01 -5- 03/10/97 11:46 AM RL..cUEST FOR COUNCIL ACTIC — MEETING DATE: March 17, 1997 DEPARTMENT ID NUMBER: ALTERNATE ACTIONS 1. Do not approve the agreement as proposed. 2. Approve the agreement with amendments. Attachment(s): City Clerk's Page Number 1. Waste Disposal Agreement between the County of Orange and the City of Huntington Beach. 2. Franchise Hauler Acknowledgment.' . 3. Ordinance No. approving Supplement No. 2 to Refuse Collection and Disposal Services Franchise Agreement. 4. Slide presentation dated 2/24/97 entitled Orange County Solid Waste Flow Agreement. MTU:RS:lp 0023394.01 -6- 03/06/97 9:26 AM .• � ,.lam ORDINANCE NO. 3349 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE FRANCHISE OF RAINBOW DISPOSAL/RAINBOW TRANSFER AND RECYCLING COMPANIES TO COLLECT REFUSE The City Council of the City of Huntington Beach does ordain as follows: SECTION 1. The franchise of Rainbow Disposal and Rainbow Transfer and Recycling Companies to collect refuse within the City of Huntington Beach is hereby amended. The terms and conditions of the franchise amendment approved by this ordinance are contained in the Second Amendment to the Franchise Agreement attached hereto as Exhibit 1 and incorporated by reference herein as though fully set forth in this Section 1. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21st day of April , 1997. Mayor ATTEST: APPROVED AS TO FORM: r- City Clerk City,Attorney RETIE NP-APPROVED: 1NI TED D APPROVED: City Administrator Director P lic Works SF/s:PMOrdinance:Rainbow 2/21/97 3349 SUPPLEMENT NO. 2 TO REFUSE COLLECTION AND DISPOSAL SERVICES FRANCHISE AGREEMENT BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND RAINBOW DISPOSAL AND RAINBOW TRANSFER AND RECYCLING COMPANIES Si This Supplement No. 2 to the Franchise Agreement is entered into this day of 1997, by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "CITY", and the RAINBOW DISPOSAL CO. INC.joined by RAINBOW TRANSFER AND RECYCLING, INC., both California corporations, hereinafter referred to collectively as "CONTRACTOR." WHEREAS, CITY and CONTRACTOR have previously entered into a franchise agreement, dated February 5, 1990, wherein CONTRACTOR was awarded the right to provide refuse collection, and disposal services and recycling services to CITY; and CITY and CONTRACTOR entered into a Supplement No. 1 to the Franchise Agreement concerning the operation of a solid waste processing facility; and CITY is considering entering into a flow control agreement with the County of Orange; and CITY and CONTRACTOR are desirous of amending the franchise agreement to provide flow control authority to the CITY; EXHIBIT 1 1 SF\s\PCD:RnbwAmd2 RLS 97-042 2/14/97-N3 r 3349 NOW, THEREFORE, CITY and CONTRACTOR do hereby agree as follows: SECTION 1. Upon thirty (30) days written notice, CITY has the right to direct that One Hundred Percent (100%) of the refuse collected pursuant to this Franchise be delivered to any of the landfills owned by the County of Orange located within the boundaries of the County. SECTION 2. This Supplement No. 2 to the Franchise Agreement shall be in full force and effect and legally binding on the parties hereto from the effective date through the remaining term of the Franchise Agreement, including any amendments thereto. Balance of page intentionally left blank. 2 SF%s\PCD:RnbwAmd2 RLS 97-042 2J14/97-#4 a 3349 SECTION 3. Except as otherwise specifically modified herein, all other items and conditions of the existing Franchise Agreement to which this Supplement No. 2 is appended shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this amendment as of the date first above written. RAINBOW DISPOSAL COMPANY, INC., CITY OF HUNTINGTON BEACH, a Calfornia corporation a municipal corporation of the State of California .. By: Mayor (print name) ItS: (circle one)Chairman/Presiden ice President ATTEST: By: City Clerk y-?y3 ' 7 �rL)C� SGtv��,J APPROVED AS TO FORM: (print e) _ Its: (circle one Secre Chief Financial Officer/ Assn.Secretary-Treasurer t: 1l�1 City Attorney yj RAINBOW TRANSFER AND RECYCLING,INC., a California corporat' n AND APPROVED: BY: Dir ctor of Public Works (print:Z�f REVIEWED D APPROVED: Its: (circle one Chairmsn ice President BY: City Administrator (print name) Its:(circle one) ecret Chief Financial Officer/Asst.Secre -Treasurer 3 S N\PC D:Rnbw,Amd2 RLS 97-042 2/14197-03 Ord. No. 3349 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 17th of March, 1997, and was again read to said City Council at a regular meeting thereof held on the 21st of April, 1997, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Julien, Harman, Dettloff, Bauer, Sullivan, Green, Garofalo NOES: None ABSENT: None ABSTAIN: None 1,Connie Brockway CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Independent on ar. J 1997 City Clerk and ex-officio Cler In accordance with the City Charter of said City of the City Council of the City Connie Brockway Qi1y Clerk of Huntington Beach, California li� �eJ& 4eputY 01y Clerk G/ordinanc/ordbkpg 4/23/97 t CP Lo c� S� O.�cC 13 Y 9 S +yora Qav a..d a Q N o. a oy4+ • FRANCHISE HAULER ACKNOWLEDGMENT THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of yJU,rc! , 1997 (the "Acknowledgment"), by and between the City of yyn�,�:,/y,, ����, (the "City") and ��nbo� �isyosaln boi� (the "Franchise Hauler"). WITNESSETH WHEREAS, the City and the Hauler have heretofore entered into an agreement entitledl__,"�' dates !!Z "Franchise"); and WHEREAS, the Franchise provides for the collection and disposal of certain municipal solid waste as described therein("Franchise Waste") generated within the City; and WHEREAS, Orange County (the "County") owns, manages and operates a sanitary landfill disposal system for municipal solid waste generated within the County; and WHEREA e City and the County have heretofore entered into a Waste Disposal Agreement, dated as of , 1997 (the "Disposal Agreement") determining that the execution of such Disposal Agreemen wi 1 serve the public health, safety and welfare of the residents of the City and County, by maintaining public ownership and stewardship over the Orange County Landfill Disposal System (the "Disposal System"); and WHEREAS, under the Disposal Agreement, the County has agreed to provide long-term disposal of all municipal solid waste generated within the City and the City has agreed to exercise all legal, and contractual power which it possesses from time to time to deliver or cause the delivery of such waste to the Disposal System; and WHEREAS, the provisions of the Waste Disposal Agreement which guarantee capacity for the long term disposal of waste at specified rates generated in the City provide significant benefits to the Hauler; WHEREAS, notwithstanding any Franchise provisions to the contrary, the Franchise Hauler explicitly acknowledges the aforementioned benefits to the City, the County and the Hauler in providing for the disposal of all Franchise Waste to the Disposal System; and WHEREAS, the City and the Franchise Hauler desire to enter into this Acknowledgment to assure that the City and the Hauler will be entitled to the benefits of the Waste Disposal Agreement and to assure conformity with the waste delivery obligations which have been agreed to by the City under the Disposal Agreement through the delivery of waste by the Franchise Hauler to the Disposal System; and 1 APPENDIX #3 WHEREAS, the Franchise Hauler's agreement to deliver Franchise Waste to the Disposal System under this Acknowledgment is given in consideration of the Franchise Hauler's right to receive the Contract Rate for such disposal as provided in the Disposal Agreement. NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 1. Capitalized terms used and not otherwise defined herein are used as defined in the Disposal Agreement. 2. The Franchise Hauler hereby waives any right which it may possess under applicable law to contest on any ground, constitutional, statutory, case law, administrative or otherwise, (a) the right, power or authority of the County or the City to enter into or perform their respective obligations under the Disposal Agreement, (b) the enforceability against the County or the City of the Disposal Agreement, or (c) the right, power or authority of the City to deliver or cause the delivery of all Controllable Waste to the Designated Disposal Facility in accordance with this Acknowledgment. 3. The City and the Franchise Hauler each hereby represent that this Acknowledgment has been duly authorized by all necessary action of their respective governing bodies. 4. The Franchise Hauler shall deliver or cause to be delivered all Controllable Waste (including all residue from the processing by any means, wherever conducted, of Controllable Waste), to the Disposal System, and shall otherwise assist the City in complying with its obligations under the Waste Disposal Covenant in Section 3.1 of the Disposal Agreement. 5. The Franchise Hauler shall not haul Controllable Waste to any materials recovery facility, composting facility, intermediate processing facility, recycling center, transfer station or other waste handling or management facility unless the contract or other agreement or arrangement between the Franchise Hauler and the operator of such facility is sufficient in the opinion of the County to assure that the Residue from such facility constituting City Acceptable Waste (or Tonnage equivalencies) and the City Acceptable Waste transferred by such facility shall be delivered to the Designated Disposal Facility in compliance with the Waste Disposal Covenant. 6. The Franchise Hauler shall pay the Contract Rate imposed by the County at the Designated Disposal Facility for the disposal of all Controllable Waste, which rate shall be subject to potential adjustment necessary to reflect the circumstances set forth in the Disposal Agreement. 7. Nothing in this Acknowledgment is intended to restrict any right or responsibility explicitly given the Franchise Hauler in the Franchise to recycle City Acceptable Waste, except as provided in paragraph 5 above with respect to Residue from any such recycling operations. 8. The obligations of the Franchise Hauler under this Acknowledgment shall apply notwithstanding any provision of the Franchise which may conflict herewith. 9. This Acknowledgment may be enforced by the City by any available legal means. In any enforcement action by the City, the burden of proof shall be on the Franchise Hauler to demonstrate compliance herewith. 2 10. This Acknowledgment shall be in full force and effect and shall be legally binding upon the City and Franchise Hauler from the dated hereof and shall continue in full force and effect until the earlier of(i) the end of the term of the Franchise or (ii) the end of the term of the Disposal Agreement. 11. The City and Hauler agree that the County shall be an express third party beneficiary of this Acknowledgment, and shall be entitled to independently enforce the obligations of the Hauler hereunder. 3 f r IN WITNESS WHEREOF, the parties have caused this Acknowledgment to be executed by their duly authorized officers or representatives as of !:�Mday of_�i�C, 1997. ATTEST : CITY OF Signature: City Clerk - C ,,L A., y,?a,��1#3a-ar-,,.-, M"M-.. APPROVED AS TO FORM: Printed Name: RAL12d BAu,er- r co,—��_./`7 Title: 1ttNQ2- GA L HUTTON, City Attorney :INITIATED, REVIEWED & APPROVED: Rainbow Disposal and Rainbow Transfer & (Franchise Hauler) Disposal Companies SignatureY� City Adm i n i s r a t o r Printed Name: UA/ ���� Title: 4 . fi ;3? •'3 ........333 ...................�.i,LGt x; •:>, .,•::•::t•;:•;:-::::•::•::t.;:•>:-::••:•:•::•::•:�:t•:::;',:tt•'.•:::•::t•::•;::-::•:t;:t.,,:+•%�'�i•'•:�:`•:a:;3:�3:;�:�3:;�3:�3:;�:�:::::::::-:�:�:, +:•kk;•:;::3:;;'t;�:'t ', „+k+:•:t.::•;::r>:•:;•:•:•:;'t�3:�3:::;::•>::................,. .�k:.33;r:•::r:•:.;,•. :.....1..W—A :V. .:..... ................................ .::::::::::::............:................... ................................ ................................ .....:.... tt� { A,it ; 33:53r:�3:�33:�33>:ii;:::333333:t;�3:�33:�3:�33:•3::3:.3:i.3:.3:.3:•3:t`;.3::3•%:•>r.:-;::;:3:;�3::3:�3:t�3S::3:�3::3:�3:•:3:�:::: y ................ .................... .................... ;. 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Agenda - 04/21/97 (16) F-3. (City Council) Creation Of City Council Subcommittee For Huntington Central Park Specific Plan And Environmental Impact Report (120.25) Communication from the Community Services Director informing Council of the need to j consider creating a City Council subcommittee to coordinate with the city staff team and consultants in the preparation of the Huntington Central Park Specific Plan and j Environmental Impact Report (EIR). Recommended Motion: A. Create a Huntington Central Park Specific Plan and EIR Council Subcommittee [Approved 7-0] and B. Appoint two councilpersons to work with representatives from the Community Services Commission and Planning Commission. [Appoint Harman and Sullivan -- 7-0] F-4. (City Council) City Treasurer Summary - Investment Portfolio Activity - February, 1997 (310.20) Communication from the City Treasurer transmitting the Monthly Investment Summary Review for February, 1997. Recommended Motion: Review monthly report. Following review of the report, by motion of Council, accept the Monthly Investment Report for February, 1997, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. [Approved 7-0] G. Ordinances G-1. Ordinances For Adoption Recommended Motion: Adopt, by roll call vote, the following ordiA c after City Clerk reads by title. l G-1A. (City Council) Ordinance No. 3349 -Approves Supplement No. 2 To Refuse Collection And Disposal Services Franchise Agreement By And Between City And Rainbow Disposal - Rainbow Transfer And Recycling Companies (600.45) - Adopt Ordinance No. 3349 - "An Ordinance Of The City Of Huntington Beach Amending The Franchise Of Rainbow Disposal/Rainbow Transfer And Recycling Companies To Collect Refuse." [Adopted 7-0] G-1 B. (City Council) Ordinance No. 3350 -Amends Holly-Seacliff Specific Plan - Code Amendment No. 96-2 - s/Ellis Avenue - n/Palm Avenue -w/Main Street - e/City Boundary (450.30) - Adopt Ordinance No. 3350 "An Ordinance Of The City Of Huntington Beach Amending The Huntington Beach Ordinance Code By Amending The Holly-Seacliff Specific Plan (Code Amendment NO. 96-2)." [Adopted - 6-1 -- (Sullivan -- NO)] (16) Page 10 -Council/Agency Agenda 3/1719 (10) 31 _ qT F. Administrative Items F-1. (City Council) Approval Of Waste Disposal Agreement With County Of Orange - Waste Flow Control - Approval Of Franchise Hauler Acknowledgment With Rainbow Disposal - Introduction Of Ordinance No. 3349 - Approving Supplemental Agreement No. 2 To Refuse, Collection And Disposal Franchise Agreement With Rainbow Disposal (600.45) Communication from the Assistant City Administrator regarding the following issue: The cities in Orange County and the county itself are interested in maintaining public ownership of the landfill disposal system. In order to assure this, the county is working to contain their costs and establish adequate and predictable revenues to pay their bills. The cities in the county are working to establish predictable gate fees at the lowest possible cost for disposing of solid waste coming from their respective cities. The purpose of this agreement is to attain these objectives. Otherwise the county will pursue consideration of sale of the landfill system. Recommended Action: Motion to: 1. Approve and authorize the Mayor and City Clerk to execute the Supplemental Agreement No. 2 to Refuse Collection And Disposal Service Franchise Agreement between the County of Orange and the City of Huntington Beach. AND 2. Approve and authorize the Mayor and City Clerk to execute the Waste Flow Control/Approval of Franchise Hauler Acknowledgment between the City of Huntington Beach and Rainbow Disposal and Rainbow Transfer and Recycling Companies. AND 3. Approve Introduction of Ordinance No. 3349, after a reading by title by the City Clerk - "An Ordinance Of The City Of Huntington Beach Amending The Franchise Of Rainbow Disposal/ /Rainbow Transfer And Recycling Companies To Collect Refuse:" - (Approves Supplement No. 2 to Refuse Collection and Disposal Services Franchise Agreement by and between the City of Huntington Beach and Rainbow Disposal and Rainbow Transfer and Recycling Companies) and authorize the Mayor and City Clerk to execute same. [Approved 1, 2, 3 -- 7-0 -- Approved Introduction 7-0 to be presented for Adoption 417197] F-2. (City Council) Status Report On Bolsa Chica Service Delivery Issues (440.60) - Communication from the City Administrator, Fire Chief, Library Director, Public Works Director and Police Chief submitting a status report on the Library, Fire, Police and Public Works (including water and sewer) service delivery issues, responses to the water service questions raised at the February 24, 1997 council meeting and a re-affirmation on the City Council's direction regarding pursuit of the service agreements. Recommended Action: Motion to: 1. Direct the City Administrator, or his designee, to continue negotiations with Koll Real Estate Group and the Orange County Fire Authority on the Fire service agreement; [Approved -- 5-2 (Harman, Sullivan -- NO)] AND (10) .rY,. ORD /uo. 33yg SUPPLEMENT NO. 2 TO REFUSE COLLECTION AND DISPOSAL SERVICES FRANCHISE AGREEMENT BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND RAINBOW DISPOSAL AND ' RAINBOW TRANSFER AND RECYCLING COMPANIES Si This Supplement No. 2 to the Franchise Agreement is entered into this day of 1997, by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation,.hereinafter referred to as "CITY", and the RAINBOW DISPOSAL CO. INC.joined by RAINBOW TRANSFER AND RECYCLING, INC., both California corporations,hereinafter referred to collectively as "CONTRACTOR." WHEREAS, CITY and CONTRACTOR have previously entered into a franchise agreement, dated February 5, 1990, wherein CONTRACTOR was awarded the right to provide refuse collection,and disposal services and recycling services to CITY; and CITY and CONTRACTOR entered into a Supplement No. 1 to the Franchise Agreement concerning the operation of a solid waste processing facility; and CITY is considering entering into a flow control agreement with the County of Orange; and CITY and CONTRACTOR are desirous of amending the franchise agreement to provide flow control authority to the CITY; EXHIBIT, 1 1 SF\s\PCD:RnbwAmd2 RLS 97-042 2/14/97-#3 �i NOW, THEREFORE, CITY and CONTRACTOR do hereby agree as follows: SECTION 1. Upon thirty (30)days written notice, CITY has the right to direct that One Hundred Percent(100%) of the refuse collected pursuant to this Franchise be delivered to any of the landfills owned by the County of Orange located within the boundaries of the County. SECTION 2. This Supplement No. 2 to the Franchise Agreement shall be in full force and effect and legally binding on the parties hereto from the effective date through the remaining term of the Franchise Agreement, including any amendments thereto. Balance of page intentionally left blank. 2 SF1s\PCD:RnbwAmd2 RLS 97-042 2/14/97-#4 SECTION 3. Except as otherwise specifically modified herein, all other items and conditions of the existing Franchise Agreement to which this Supplement No. 2 is appended shall remain in full force and effect. -IN WITNESS WHEREOF, the parties hereto have executed this amendment as of the date first above written. RAINBOW DISPOSAL COMPANY, INC., CITY OF HUNTINGTON BEACH, a Calfornia corporation a municipal corporation of the State of California By. 0� Mayor (print name) Its: (circle one)Chairman/Presiden ice President ATTEST: By: City Clerk 3 ' 7 drUCE %)MAIJ APPROVED AS TO FORM: (print e) Its: (circle one Secre Chief Financial Officer/ Asst.Secretary-Treasurer City Attorney J� Al RAINBOW TRANSFER ANDRECYCLING, INC., a California corpora,' IN TED AND APPROVED: BY: 91r ctor of Public Works (1 Wr (print n ,,,,�� REVIEWED APPROVED: Its: (circle one Chairm res�3en ice President BY: City Administrator /Jro e 0 AJ (print name) Its:(circle one) ecre Chief Financial Officer/Asst.Secre -Treasurer 3 SFIs\PCD:RnbwAmd2 RLS 97-042 2/14/97-#3 (Bel Space :For 'iCitp Clerks U, On1p Council/Agency Meeting Held: 1 Deferred/Continued to: �""�' — EVA'pproved ❑ Conditionally Approved ❑ Denied City Clerk's Signature DPu- Council Meeting Date: Department ID Number: June 17, 1996 REQUEST FOR COUNCIL ACTION S MITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS �y SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator PREPARED BY: LES M. JONES II, Director of Public W rks ROBERT FRANZ, Deputy City Administrat SUBJECT: REFUSE RATES Statement of Issue,Funding Source,Recommended Action,Alternative Action,Analysis,Environmental Status,Attachment(s) Statement of Issue: The Refuse Collection Franchise Agreement with Rainbow Disposal contains a provision requiring an annual review of service rates. Funding Source: Refuse service fees. Recommended Action(s): 1. 'Retain the existing residential refuse service fee of $16.55 per month per unit of service for the time period July 1, 1996 to June 30, 1997. 2. Adopt the attached Exhibit A, effective July 1, 1996, as the new Exhibit A of the Refuse Collection Franchise Agreement. Alternative Action(s): 1. Reduce the existing refuse service fee to an amount less than $16.55 per unit/month. 2. Disapprove the Exhibit and retain the fee schedule adopted on July 7, 1995. REQUEST FOR COUN01' ACTION Meting Date: June 17, 1996 REFUSE RATES Analysis: Our refuse services agreement calls for an annual adjustment in the monthly unit of service payment due the contractor, Rainbow Disposal. Under the contract, changes in compensation for each subsequent year(July 1 to June 30) are determined by a formula with three variables. They are the Los Angeles Consumer Price Index (76%), the County of Orange landfill fee (16%), and the average price of diesel fuel (8%). This year, because of a lowering of landfill fees from $35.00 to $27.00 per ton by the County, a decrease in compensation will occur. However, because both Consumer Price Index (CPI) and the cost of diesel fuel have increased, the impact of the landfill fee reduction would have been diminished if Rainbow had not agreed to forgo those increases. Rainbow has agreed to accept a rate reduction of $0.46 per monthly unit of service when only$0.40 was required, and they have also consented to making that change effective April 1, 1996, rather than July 1, 1996. The lower rate will also be applied to Rainbow's commercial customers (see Attachment 1), but the recycling fee for use of the Materials Recovery Facility (MRF) will remain the same. A copy of the formula calculation (Attachment 2) is attached. It should be noted that the $0.40 reduction stated above was based upon Rainbow's acceptance of the January to January CPI and not the April to April index in the contract. This was detrimental to Rainbow'because the April to April index was higher and would have yielded a $0.30 reduction, not the $0.40 one. The impact of Rainbow's action will help the City's Refuse Fund become self-supporting. In the past this fund has operated in the red. Last year the shortfall reached $489,000 (see Attachment 3). Because of the rate reduction, the shortfall can be reduced to approximately $168,000 in Fiscal 1995-96 and $40,000 in 1996-97 so long as the current residential rate of $16.55 per monthly unit of service is retained. Environmental Status: Categorically exempt. Attachments(s): PAGE NUMBER 1. Exhibit A: Rainbow Disposal Commercial Service Rates 2. Formula calculation by Mallory, McGinnis & Holash 3. Refuse Fund Balances: 1994-95, 1995-96 and 1996-97 41.RCA -2- 6/5/96 3:11 pm f ' EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1996, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month) BIN SIZE: 1 CU. YARD 2 CU. YARD 3 CU. YARD PICKUPS 1 x Week 51.84 84.69 107.01 PER WEEK: 2 x Week 82.59 124.05 164.67 3 x Week 104.85 159.03 228.50 4 x Week 117.33 189.06 274.59 5 x Week 138.22 233.16 350.64 6 x Week 160.46 269.11 411.18 Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cu. Yard Only, in dollars per month. Add 25% for 4 Cu. Yard) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week 214.02 329.34 457.00 549.18 701.28 822.36 Temporary Service SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend 50.00 per load 35/40 Yd. Drop Off Box* Three (3) days $352.00 per load 35/40 Yd. Drop Off Box` Five (5) days 382.00 per load 10/15 Yd. Drop Off Box`* Three (3) days $388.00 per load 10/15 Yd. Drop Off Box** Five (5) days 421.00 per load *Highside (6 tons max). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dumping fees, and customer may have to order an another container to comply with State of California weight limitation laws. C E R T I F I E — PUBLIC ACCOUNTANTS MALLORY MCGINNIS & HOLASH RAINBOW DISPOSAL, INC. RAINBOW DISPOSAL COMPANY, INC. FORMULA AS. OF MARCH 19, 1996 DUMP DIESEL YEAR CPI (76X) FEES (16%) FUEL (8%) ----------- ---------- ------------ ------------ 1995 1.80 35.00 1.1550 1996 0.90 27.00 1.1300 PERCENTAGE CALCULATION: YEAR 76% + 16% + 8% = 100.0% ------ ------------ ------------ ------------ 1996 0.6840 -3.6570 -0.1700 -3.1430 1995 PERCENTAGE RATE 1996 RESIDENTIAL RATE CHANGE CHANGE RATE ---------- ------------ ------------------------- H.B. 12.8319 -3.1430 -0.4033 12.4286 William E.Mallory;CPA Patrick McGinnis,CPA Richard Holash,CPA 16541 Gothard Streer Suite 111, Huntington Beach,California 92647 714;Si7-6477 714/8-11-3477 rAX714'841-1935 REFUSE FUND BALANCES ::::>::::>::::>::::>::::>::::::::::::::>::::>::::...........94 ..:::::::..:::.....::::.::::::::::::::::::::::..... ... ::..:.:::.....::::::::.::::::.:::::..::::.:::..:... : 7....... :.:........ 1..:::::::::::::::::. ::::.::::::::::::::::::::::.. :1.::.::::::::::::.:::::.:::::.::::::::::::::::::::::::::::..1... TAL > > ><> RO#ECTED Rt}PO .'E1 <<< < ............................................................................................................................................................. ...................................................................................................................... ........................................................... ........................................................ ........................................................................................................................................................................................................................................... ...................................................................................................................... ........................................................... ......................................................... ............................................................................................................................................................................................................................................. EXPENSES + Services 8,372,495 8,747,029 8,669,628 + AB-939 33,505 60,000 77,832 + Other 6,000 -0- -0- SUBTOTAL 8,412,000 8,807,029 8,747,460 REVENUES + Fees 7,882,000 8,628,971 8,694,708 + Other 41,000 10,000 12,000 SUBTOTAL 7,923,000 8,638,971 8,706,708 BALANCE SHORTFALL: -489,000 -168,058 -40,752 i �BeSpace:*Far 11PY -- C*t er, S uii%;�� 0 1 Council/Agency Meeting Held:— —Fso, Deferred/Continued to: ..P C— Clerk's Signature Approved 0 Conditionally Approved El Denied City Council Meeting Date: July 5, 1995 Department ID Number: REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS W i EMITTED BY: MICHAEL T. UBERUAGA, City Admin P 'PPREPARED BY: LES JONES 11, Director of Public Works SUBJECT: REFUSE RATES Statement of Issue,Funding Source,Recommended Action,Alternative Action,Analysis,Environmental Status,Atta�chmentw Statement of Issue: To hold a public hearing on the Refuse Collection Franchise with Rainbow Disposal provision requiring an annual adjustment in compensation. Funding Source: Refuse service user fees. Recommended Action: 1. Open the Public Hearing 2. Adopt attached Resolution increasing the residential curbside refuse collection and disposal fee of $15.20 per unit of service per month to $16.55 per unit/month effective July 1, 1995. Alternative Actlon(A): 1. Do not increase the residential refuse collection charge and fund the difference owed the contractor from the General Fund. 2. Increase the charge from $15.20 per unit/month to an amount less than $16.55 and fund the unfunded portion from the General Fund. REQUEST FOR COON, _ ACTION M, ing Date: July 5, 1995 REFUSE RATES 3. Increase the charge from $15.20 per unit/month to $17.00 per unit/month to remove the General Fund subsidy of the Refuse Fund. Analysis: The City refuse collection and disposal franchise agreement with Rainbow Disposal calls for an annual rate adjustment in accordance with a formula contained in the agreement. This year, as a result of the County of Orange increasing the gate fee at the landfill from $22.75 to $35.00 per ton (a 54% increase), that formula requires an increase of 10.94% on the base rate of $11.56. It will increase the amount paid to the contractor by $1.27 per unit of service per month. Currently the City residential refuse rate is $15.20 per unit of service per month. Its components are $11.56 for collection and disposal, $3.00 for processing through the Material Recovery Facility (MRF), $0.15 to fund the State mandated AB-939 public education program, and a$0.49 City service charge (billing, refuse administrations, etc.). The City collects the full fee ($15.20) and pays the contractor the base rate ($11.56) and the MRF charge. The recommended rate, to be effective July 1, 1995, will be $16.55 per unit/month. The components of this rate are $12.83 for collection and disposal (a 10.94% increase), $3.00 for the MRF (no increase), $0.15 for AB-939 (no increase), and a $0.57 City service charge (adding $0.08 per unit/month to offset the costs of trash disposal fees for lower income Senior Citizens). Qualifying Senior Citizens are exempted from refuse fees under Section 8.20.015 of the Huntington Beach Municipal Code. The proposed rate ($16.55) seeks only a partial recovery of the cost of providing service charge exemptions to qualifying Senior Citizens. A full recovery of this provision would require the addition of $0.18 per unit/month to the existing rate. Historically, the Refuse Fund has required subsidy from the General fund on an annual basis. It should be noted that the proposed rate of $16.55 per unit/month will not cover the entire cost of the City Refuse Program. A General Fund subsidy of $0.45 per unit/month will be necessary for an annual subsidy of $235,000. Environmental Status: Categorically Exempt 13C.RCA -2- 6/23/95 10:30 am REQUEST FOR COON` . ACTION M ing Date: July 5, 1995 REFUSE RATES Attachments(s): PAGE NUMBER 1. Resolution increasing the residential refuse fee. 2. Formula Calculation by Mallory, McGinnis & Holash. 13C.RCA -3- 6/23/95 10:30 am ZV/ RESOLUTION NO. 6 6 9 82 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES WHEREAS, pursuant to Huntington Beach Municipal Code Section 8.20.015, the City Council shall establish curbside residential refuse collection rates for"basic level of service" as defined in the Huntington Beach Municipal Code Section 8.20.010(a) and "unit of service" as defined in Section 8.20.010(k); NOW, THEREFORE,the City Council of the City of Huntington Beach hereby resolves as follows: SECTION 1. The monthly rate for curbside residential refuse collection for basic level of service be S 16.A 5 per unit of service. This rate shall take effect on all billings dated after July 1, 1995, prorated for service before and after July 1, 1995. SECTION 2. This charge for residential curbside collection will be combined with the residential water billing process. SECTION 3. Partial payments shall be applied to outstanding balances in the following manner: A. Towards all penalties and interest due the city, and B. Should a portion of the payment remain, it shall be applied towards outstanding refuse charges, and C. Should a portion of the payment remain, it shall be applied towards outstanding water utility tax balances, and D. If the account is a member of the Fire Med Service program, any remainder shall be applied toward this program. E. Should a portion of the payment remain, it shall be applied towards water service charges. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held thereof on the 5th day of Jul , 1995. ATT T: Mayor 1� • APPROVED AS TO FORM: City Clerk EVI WED AND O. _ ity Attorney ED D ROVED: y Administra o Director of P LQlic orks 3/k/refuse/6/6/95 Res. No. 6698 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 5th of July, 1995 the following vote: AYES: Councilmembers: Harman, Bauer, Sullivan, Leipzig, Dettloff, Garofalo NOES: Councilmembers: None .ABSENT: Councilmembers: Green(out of room) City Clerk and ex-officio ClKrk of the City Council of the City of Huntington Beach, California G/kw/indexes/resbkpg C E RTI F I E D — U B L I C ACCOU N TA NTS MALLORY MCGINNIS & HOLASH RAINBOW DISPOSAL COMPANY, INC. FORMULA AS OF MARCH 31, 1995 DUMP DIESEL YEAR CPI (76%) FEES (16%) FUEL (8%) ------------ ------------ ------------ ------------ 1994 1.40 22.75 1.0320 1995 1.80 35.00 1.1550 PERCENTAGE CALCULATION: YEAR 76% + 16% + 8% = 100.0% ------------ ------------ ------------ ------------ 1995 1.37 8.62 0.95 10.94 1994 PERCENTAGE RATE 1995 RESIDENTIAL: RATE CHANGE CHANGE RATE ------------ ------------ ------------ ------------ 11.5665 10.94 1.2654 12.8319 William E.Mallory,CPA Patrick McGinnis,CPA Richard Holash,CPA 16541 Gothard Street Suite ill, Huntington Beach,California 92647 714/847-6477 714/841-3477 FAX 714/841-1935 PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. County of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I am PUBLIC NOTICE over the age of eighteen years, and not a NOTICE OF HE party to or interested in the below P"BCITY OF'"G NTINGTON entitled matter. I am a principal clerk of HUFEE NCREA EC" the HUNTINGTON BEACH INDEPENDENT, a FOR SOLID AND newspaper of general circulation, printed Notice IsPhereby given ` that a public .hearing will and published in the City of Huntington be held by the City Council Beach County of Orange, State of of the City of Huntington Beach, In the Council . `/ t7 Chambers of the Civic Cen- California, and that attached Notice is a ;hen urtin of6on Beach, at 30P.M,oras true and complete copy as was printed on Wednesday, thereafter as5thbof an Wednesda t July. 1995,for the purpose and published in the Huntington Beach of considering an Increase In the fee for solid waste and Fountain Valley issues of said collection and disposal. It Is proposed that the fee be set at a roximately$16.55 newspaper to wit the issue(s) of: per respTlntial unit of ser- vice per month, an in- crease of $1.35 over the ; existing fee. The exact , amount of the increase will be determined after the ; June 22, 1995 hearing,but will not exceed $17.00 per residential unit of service per month. A June 29, 1995 c opr of of Ic or iri-,Is on Clerk. All citizens are invited to ,attend and provide the City Council .with written and I declare, under penalty of perjury, that questions concerning the proposed fee for .solid the foregoing is true and correct. waste collection and dis- posal. Written communica- tions to the City Council for or against the proposed fee increase may be also mailed to the City Clerk. Executed on June 29 199 5 Please contact Jim San- k ey, Senior Analyst for fur- at Costa Mesa California. they information at 536 5522. _ The City- of Huntington Beach endeavors to ac- commodate persons of handicapped status In the admission or access to, or treatment or employment In, City programs or activl- tles.T e City of Huntington Beach is an equal op- portunity employer. DATED:6/15/95 City of Huntington Signature Beach Connie Brockway, City Clerk, 2000 Main Street, Huntington Beach, CA 92648, Telephone:536-5227 Published Huntington Beach-Fountain Valley In- dependent June 22, 29, 1995. 064-630 CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK July 7, 1995 Rainbow Disposal Company, Inc. Rainbow Transfer& Recycling, Inc. P. 0. Box 1026 Huntington Beach, CA 92647 The City Council of the City of Huntington Beach at their meeting held July 5, 1995, approved a new"Exhibit A"which pertaining to the annual adjustment of commercial service rates, and which is part of the Refuse Collection Franchise Agreement and adopted Resolution No. 6698 establishing residential curbside refuse collection rates. Enclosed is a copy of the "Exhibit A" and Resolution No. 6698 for your records. If you have any questions regarding this matter, please call the City Clerk's Office at (714) 536-5227. Connie Brockway City Clerk Evelyn Schubert Deputy City Clerk Enclosures cc: Jim Sankey, Department Analyst Senior g:cc\agrmt (Telephone:714.536-5227) '. . HUNTINGTON BEACH • FOUNTAIN' -LEY Independent THE NEWPORT BEACH-.COSTA MESA PILOT Client Reference tt zu, G' Independent Reference Dear Advertiser: Enclosed please find clipping of your ad from the first publication, beginning _f f ;>✓�yS If you need to make any changes or corrections, please call me at your earliest convenience. The cost of this publication will be $ Thanks for your- cooperation and patronage.' PUBLIC NOTICE Iquestionf nceming the propr+aed fee for.-solid NOTgrE OF ASraste collection and,.dis- Pl""74Ep f;INO- posal. Written communica- -'!'e-. .PITY OF tions to the City Council for HUNTINOTON BEACH or against the proposed, . FEE INCREASE fee Increase may be also mailed to the City Clerk. Sincerely, FOR SOLID WASTE Please contact Jim San- COLLECTION AND key,Senior Analyst for fur- 'DISPOSAL ther. Information at 536- Notice Is.hereby given 5522. that a'public hearing will The 0,1,' of Huntington be held by the City Council Beach �dhhdeavors to ac- of the City of Huntington commodaW persons of . Beach, in the Council handicapped'stafiis Itn the Chambers of the Civic Can- admission or'eccess to,or J dy O e t t i ng ster, Huntington Beach, at treatment or'employment ;the hour of 6:30 P.M.,or as in, City programs or actM- Manager ,soon thereafter as possible ties.Ttie City:of Huntington a Le l Advertising Department !on Wednesday, the Sth of Beach is.an, 'equal op- g g e p July, 1995,for the purpose portunity employer. . of considering an increase DATED:8115/95 in the fee for solid,waste City.,of Huntington collection and disposal. It BO9ch Is proposed that the fee be Connie Brockway, set at apppproximately$16.55 City Clerk, 2000 Main per rest r motlalnth, unit of sIn- Street, Huntington vice per month, an in- crease of $1.35 over the Beach, CA 92648, existing fee. .The exact Telephone:538�5227 a mount of the Increase will Published Huntington be determined after.the Beach-Fountain Valley. In- hearing,but will not exceed dependent June 22, 29, $17.00 per residential unit" - - ' service 1995. of se ce .per month. A��'. 064.630 copyy of the proposal is on ` file In the Office of-the City - Clerk. All citizens are invited to attend and provide the City Council with written and oral comments and ask prd, Suite 160 Runnngton Beach, CA 92648 (714) 965-3030 (714) 965-7174 FAX Publish 6/22 & 6/29 NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH FEE INCREASE FOR SOLID WASTE COLLECTION AND DISPOSAL Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach, in the Council Chambers of the Civic Center, Huntington Beach, at the hour of 6:30 P.M., or as soon thereafter as possible on Wednesday, the 5th of July, 1995, for the purpose of considering an increase in the fee for solid waste collection and disposal. It is proposed that the fee be set at approximately $16.55 per residential unit of service per month, an increase of $1.35 over the existing fee. The exact amount of the increase will be determined after the hearing, but will not exceed $17.00 per residential unit of service per month. A copy of the proposal is on file in the Office of the City Clerk. All citizens are invited to attend and provide the City Council with written and oral comments and ask questions concerning the proposed fee for solid waste collection and disposal. Written communications to the City Council for or against the proposed fee increase may also be mailed to the City Clerk. Please contact Jim Sankey, Senior Analyst for further information at 536-5522. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. DATED: 6/15/95 City of Huntington Beach Connie Brockway, City Clerk 2000 Main Street Huntington Beach, CA 92648 Telephone: 536-5227 ................ ................................ .................................... ............. ................. .... ........ I Space Par.:.. Vt ..........I ........................ ........... ................................... .......... ...... C . y C.1:6tk Vtp. ....... ............ ...... ................ Council/Agency Meeting Held: :7 Deferred/Continued to: Aa� 4r/, Approved 0 Conditionally Approved El Denied City Clerk's Signature X t�o'uoe; "/rZ- parl--,e 4 cle ae-.,-nrn re-,-,,Olen Council Meeting Date: July 5, 1995 Department ID Number: REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administratogo PREPARED BY: LES M. JONES 11, Director of Public Works SUBJECT: RAINBOW DISPOSAL COMMERCIAL SERVIC A ES Statement of Issue,Funding Source,Recommended Action,Alternative Action,Analysis,Environmental Status,Atta=chmen]t(sk Statement of Issue: The Refuse Collection Franchise with Rainbow Disposal contains a provision requiring an annual adjustment in commercial service rates. Funding Source: None. No funds necessary. Recommended Action: Adopt the attached EXHIBIT A, effective July 1, 1995, as the new EXHIBIT A of the Refuse Collection Franchise Agreement. Alternative Action(s): Disapprove the Recommended Action Analysis: Section 12 of the Refuse Collection and Disposal Franchise Agreement with Rainbow Disposal requires the Contractor to establish and publish a schedule of rates for all commercial service accounts. This schedule, which becomes Exhibit A of the Agreement, is amended annually in accordance with a formula contained in the Agreement, and takes effect on July 1st of each succeeding year. L REQUEST FOR COUNk- - ACTION M. .ing Date: July 5, 1995 RAINBOW DISPOSAL COMMERCIAL SERVICE RATES In conformance with Section 12, Rainbow has established and published the required schedule for contract year 1995-96. It contains an increase not exceeding the 10.94% allowed by the formula and has been authenticated by the City's Waste Management Task Force. Environmental Status: Categorically Exempt Attachments(s): PAGE NUMBER 1. New EXHIBIT A (effective July 1, 1995). 2. Section 12 (pages 12 and 13) of the Franchise Agreement. 16.RCA -2- 6/19/95 9:52 am SIIEE REFS E.ATE 1. All rate adjustments are based on a formula included in Section Eleven of the Franchise Agreement with Rainbow Disposal. 2. Pursuant to this formula all Rainbow rate adjustments are based on changes in the Consumer Price Index, Orange County landfill costs, and the price of diesel fuel. a 3. This year we experienced the following changes in the formula costs: Y W � W U W o�_ • The Consumer Price Index (based on information from the Bureau of Labor Statistics) lu 0 0 increased 1.80%. ~ZUQ OZWZ. • Landfill costs increased 53.85% (from $22.75 to $35.00 per ton). oaa_ Ocr 0 o z LL W • Diesel fuel increased 11.90% (based on invoices from the supplier). 00 Cu z W 84. Only a percentage of these actual cost increases are allowed, as noted below, in any rate LU a adjustment: ::::.::::::::::.:.:.: »: <11TE 1 P.. :..:...: ..::::::::::::::::::::..:::..:.::::A TUA ..:111 A E............. ll» IhfT.A1»Lt3 D.......... C.P.I (76%) 1.80% X .76 = 1.37% LANDFILL (16%) 53.85% X .16 = 8.62% DIESEL FUEL (8%) 11.90% X .08 = 0.95% TOTAL 10.94% 5. The current rate, $11.5665, times 1.1094 equals the new rate of $12.83. 6. The rate structures of Contract Years (July 1 to June 30) 1994/95 and 1995/96* are as follows: t.:::: ::.:::.::: :::: :::::::: ..:.. ..I�...................... ... Rainbow Contract $11.56 $12.83 $1.27 MRF Agreement 3.00 3.00 NO CHANGE AB 939 Public Ed. Fee .15 .15 NO CHANGE City Service Fee .49 (1) .57 (2) .08 TOTALS $15.20 $16.55 $1.35 As proposed. 1. Covers the costs of staff salaries and program operating expenses.. 2. This figure includes the$0.49 (i.e. staff salaries and program operating expenses) plus an additional $0.08 to offset a portion of the cost for the no-pay low income senior exemption program. EXHIBIT A C Gfit/e ��/- 9,�—G�, tctr,/ 7�-rhV RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1995, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month) BIN SIZE: 1 CU. YARD 2 CU. YARD 3 CU. YARD PICKUPS 1 x Week 53.41 87.24 110.27 PER WEEK: 2 x Week 85.05 127.72 169.59 3 x Week 107.94 163.63 235.13 4 x Week 120.72 194.44 282.37 5 x Week 142.19 239.79 360.62 6 x Week 165.00 276.73 422.84 Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cu. Yard Only, in dollars per month. Add 25% for 4 Cu. Yard) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week 220.54 339.18 470.26 564.74 721.24 845.68 Temporary Service SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend 50.00 per load 35/40 Yd. Drop Off Box* Three (3) days $352.00 per load 35/40 Yd. Drop Off Box* Five (5) days 382.00 per load 10/15 Yd. Drop Off Box** Three (3) days $388.00 per load 10/15 Yd. Drop Off Box** Five (5) days 421.00 per load *Highside (6 tons max). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dumping fees, and customer may have to order an another container to comply with State of California weight limitation laws. 11 . COMPENSATION - RESIDENTIAL A. CITY shall pay to CONTRACTOR for services provided under the terms of this AGREEMENT, the sum of $8 . 45 per month . for each UNIT OF SERVICE rendered in CITY from the period beginning February 1, 1990, until June 30 , 1990 ; and the sum of $9 . 52 per month for same from July 1, 1990 ,. until June 30, 1991 . However, should the landfill tipping fee increase more than $1 . 00 per ton during the one year period after June 30, 1990 , then the " tipping fee" portion of the formula described below shall be applied to the amount in excess of w1 . 00 per ton. B . Changes in compensation for each subsequent year will be based on the formula provided below and shall take effect on July lst of each succeeding year beginning on July 1, 1991 . A change in compensation will be determined by the three factors in the following formula : 1 . The percentage of increase in the Los Angel-es-Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area from April to April of the preceding twelve (12) months . This factor shall constitute seventy-six percent (76%) of a rate adjustment . 2 . The County of Orange landfill tipping .. fees . This factor shall constitute sixteen percent ( 16%) of a rate adjustment, and be based upon the tipping fee adopted by said County for the subsequent fiscal year . 3 . The average per gallon price of diesel fuel as paid by CONTRACTOR during the April to April time frame -11- , noted above. This factor shall constitute eight percent -(8%) of a rate adjustment . An example of this formula is provided on the attached Exhibit B . No more than one negotiated rate change shall be made in- any twelve (12) month period. However, either DIRECTOR or CONTRACTOR may propose modification of an established rate in order to assure the overall fairness of the rate structure to both CITY and CONTRACTOR. C. In the event CONTRACTOR becomes obligated in the performance of this AGREEMENT to pay any fees or charges not presently required; such as those imposed by toll roads, for the transit of REFUSE to landfills; or if CONTRACTOR is required to travel additional distances to an approved landfill site due to the closing: of an existing facility; or if the County of Orange raises the landfill tipping fee more than once during . a year; , then the parties agree to negotiate, in good faith for an adjustment in the existing monthly unit rate prior to the implementation of such charges . -12 . COMPENSATION - COMMERCIAL A. CONTRACTOR shall establish and publish a schedule of rates for all COMMERCIAL SERVICE. accounts based on frequency of collection per week and size of container. Said schedule shall be shown as Exhibit A of this AGREEMENT and shall become effective on February 1, 1990 . B . CONTRACTOR shall be exclusively responsible for making contracts for COMMERCIAL SERVICE with CUSTOMER' S within CITY. All charges will be billed to and collected from each CUSTOMER by CONTRACTOR. -12- C. Beginning July 1, 1990, and continuing for the life of this AGREEMENT, changes in compensation for COMMERCIAL SERVICE for each subsequent year will be based on the formula provided below and shall take effect on July 1st of each succeeding year. A change in compensation will be determined by three factors in the following formula : 1 . The percentage of increase in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index(CPI) or any relevant successor for the Orange County area from April to April of the preceding twelve (12) months . This factor shall constitute seventy-six percent (76%) of a rate adjustment . 2 . The County of Orange landfill tipping fees. This factor shall constitute sixteen percent (16%) of a rate adjustment, and be based upon the .tipping fee adopted by said County for the subsequent fiscal year. 3 . The average per gallon price of diesel fuel as paid by CONTRACTOR during the April to April time frame noted above . This factor shall constitute eight percent (8%) of a rate adjustment . An example of- this formula is provided on the attached Exhibit B. No more than one negotiated rate change shall be made in any twelve (12) month period. However, either DIRECTOR or CONTRACTOR may propose modification of an established rate in order to assure the overall fairness of the rate structure to both CITY and CONTRACTOR. 13 . COMMERCIAL SERVICE FRANCHISE FEE A. Beginning on July 1, 1991, CONTRACTOR shall pay CITY a franchise fee of one percent (1%) of his paid gross -13- EXHIBIT B Example of Formula For the purpose of illustration and by way of example only, assume that : On May 1, 1991, the CPI increase for the period April 1, 1990 , through April 1, 1991, is determined to be 5 . 0%; Landfill Tipping fees were increased during said period from $13 . 25 to $16 . 50 per ton (a 24 . 5% increase) ; and the Diesel Fuel Price increased during said period from $0 . 725 to $0 . 775 per gallon (a 6 . 9% increase) . The following is a statement of the Formula for an increase in the charges based upon the foregoing illustration: (76% x 5 . 0%) + (16% x 24 . 5%) + (8% x 6 . 9%) equals : 3 . 80% + 3 . 92% + 0 . 55% = 08 . 27% Thus the collection charges would be increased, commencing on July 1, 19.91, by an additional 8 . 27% . 1 CERTIFIED PUBLIC ACCOUNTANTS MALLORY MCGINNIS & HOLASH RAINBOW DISPOSAL COMPANY, INC. FORMULA AS OF MARCH 31, 1995 DUMP DIESEL YEAR CPI (76X) FEES (16%) FUEL (8%) ------------ ------------ ------------ ------------ 1994 1.40 22.75 1.0320 1995 1.80 35.00 1.1550 PERCENTAGE CALCULATION: YEAR 76% + 16% + 8% = 100.0% ------------ ------------ ------------ ------------ 1995 1.37 8.62 0.95 10.94 1994 PERCENTAGE RATE 1995 RESIDENTIAL: RATE CHANGE CHANGE RATE ------------ ------------ ------------ ------------ 11.5665 10.94 1.2654 12.8319 William E.Mallon;CPA Patrick McGinnis,CPA Richard Holash,CPA 16541 Gorhard Street Suire l 11, Huntington Beach,California 926-i7 714/8 17-6477 714i841-3-i77 FA\71,'841-1935 CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK July 7, 1995 Rainbow Disposal Company, Inc. Rainbow Transfer& Recycling, Inc. P. O. Box 1026 Huntington Beach, CA 92647 The City Council of the City of Huntington Beach at their meeting held July 5, 1995, approved a new"Exhibit A"which pertaining to the annual adjustment of commercial service rates, and which is part of the Refuse Collection Franchise Agreement and adopted Resolution No. 6698 establishing residential curbside refuse collection rates. Enclosed is a copy of the "Exhibit A" and Resolution No. 6698 for your records. If you have any questions regarding this matter, please call the City Clerk's Office at (714) 536-5227. Connie Brockway City Clerk Evelyn Schubert Deputy City Clerk Enclosures cc: Jim Sankey, Department Analyst Senior g:cc\agrmt (Telephone:714.536-5227) RESOLUTION NO. 6698 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING RESIDENTIAL CURBSIDE REFUSE COLLECTION RATES tF• 'WHEREAS, pursuant to Huntington Beach Municipal Code Section 8.20.015, the City Council shall establish curbside residential refuse collection rates for"basic level of service" as defined in the Huntington Beach Municipal Code Section 8.20.010(a) and "unit of service" as defined in Section 8.20.010(k); NOW, THEREFORE, the City Council of the City of Huntington Beach hereby resolves as follows: SECTION 1. The monthly rate for curbside residential refuse collection for basic level of service be S16.55 per unit of service. This rate shall take effect on all billings dated after July 1, 1995, prorated for service before and after July 1, 1995. SECTION 2. This charge for residential curbside collection will be combined with the residential water billing process. SECTION 3. Partial payments shall be applied to outstanding balances in the following manner. A. Towards all penalties and interest due the city, and B. Should a portion of the payment remain, it shall be applied towards outstanding refuse charges, and C. Should a portion of the payment remain, it shall be applied towards outstanding water utility tax balances, and D. If the account is a member of the Fire Med Service program, any remainder shall be applied toward this program. E. Should a portion of the payment remain, it shall be applied towards water service charges. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held thereof on the 5th day of JulY 1995. ATT T: Mayor 2� • ff4&kV2 APPROVED AS TO FORM: City Cleric EVI WED AND O _ ity Attorney ED D ROVED: y Administra o Director of 134QlLc orks 3/k/refuse/6/6/95 s Res. No. 6698 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 5th of July, 1995 the following vote: AYES: Councilmembers: Harman, Bauer, Sullivan, Leipzig, Dettloff, Garofalo NOES: Councilmembers: None ABSENT: Councilmembers: Green(out of room) L�p��!'LCli City Clerk and ex-officio Cferk of the City Council of the City of Huntington Beach, California The foregoing Instrument Is a correct COPY 'of the original on file in this office. .Attest (Q lggs— ►y Uer.k and Ex offic.io Clerk of the City :Council .of,the .City of Huntington Beach, 'CaliforgiEo. By eputy G/kw/indexes/resbkpg SUPPLEMENTAL AGREEMENT NO. 1 TO THE FRANCHISE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE RAINBOW DISPOSAL AND RAINBOW TRANSFER AND RECYCLING COMPANIES THIS SUPPLEMENTAL AGREEMENT made and entered into this yeti day of 1994, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, (hereinafter referred to as "CITY"), and the RAINBOW DISPOSAL COMPANY, INC., joined by RAINBOW TRANSFER AND RECYCLING, INC., both California corporations, hereinafter referred to collectively as "CONTRACTOR.' RECITALS WHEREAS, CITY and CONTRACTOR have previously entered into a franchise agreement dated February 5, 1990, wherein CONTRACTOR was required to provide a solid waste processing facility; and CITY and CONTRACTOR agreed the costs of operation of said facility would be borne by the users of the facility; and CITY and CONTRACTOR have met in accordance with said agreement and established charges for the use of this service: NOW, THEREFORE, CITY and CONTRACTOR do hereby agree as follows: 1. COMPENSATION A. CITY shall collect and pay to CONTRACTOR, for operation of a solid waste processing facility, the sum of Three Dollars ($3.00) per month for each Residential Unit of Service rendered in CITY during the period commencing 30 days prior to the opening of the facility and extending through June 30, 1995, inclusive. B. CONTRACTOR may collect a monthly fee for the operation of said facility from Non-Units of Service in an amount not to exceed a rate schedule approved by CITY. Said schedule shall be shown as Exhibit A.1 of this Supplemental Agreement and shall become effective July 1, 1994, and extend through June 30, 1995. 2. ADJUSTMENT A. CITY and CONTRACTOR agree to meet at least 90 days prior to June 30, 1995, to review the compensation provisions of this agreement and to make such adjustments as are deemed necessary. Any adjustment made at this time shall be effective July 1, 1995, and shall be based upon a consideration of the data, as specified in Section 20 of the Franchise Agreement,obtained from the first year of facility performance. Said data shall include but not RAIN BOW.D O C 6/k/04/22/94 be limited to such factors as the actual cost of plant operation and the resale value of the materials collected at the facility. B. Beginning July 1, 1996, and continuing for the life of this agreement, changes in compensation for each subsequent year shall not exceed the percentage of increase or decrease in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area from April to April of the preceding twelve (12) months. C. No more than one negotiated rate change shall be made in any twelve (12) month period. However, either CITY or CONTRACTOR may propose modification of an established rate in order to assure the overall fairness of the rate structure. D. Should a dispute arise over the setting of a new rate or rate schedule, CITY and CONTRACTOR agree to continue the compensation plan then in effect until the dispute is resolved with the provision that the settlement be retroactive to the beginning of the payment period. 3. REPORTING REQUIREMENTS A. CONTRACTOR shall as part of this agreement maintain such records on the composition and disposition of materials collected at the solid waste processing facility as may be required for reporting purposes by the California Integrated Waste Management Board. B. CONTRACTOR also agrees to provide CITY with such statistical data on the operation of the facility and/or the materials processed by same as CITY may deem necessary. 4. OTHER PROVISIONS A. CONTRACTOR shall be free to establish service rates for refuse processed by the facility but collected outside the CITY limits so long as those rates are never less than the rates charged for this same service to service users within CITY. B. CONTRACTOR shall become owner of all solid waste delivered to the facility and shall have the exclusive right to market all recyclable materials reclaimed therein. C. CONTRACTOR shall at all times be solely liable for any and all expenses incurred pursuant to the marketing of said materials. D. CONTRACTOR warranties the ability of the facility to meet the diversion quota established for same in the CITY's Integrated Waste Management Plan in conjunction with other diversionary and reduction programs. Should CONTRACTOR fail to meet the quota due to any fault or failure of CONTRACTOR then CONTRACTOR shall be liable to pay any fine or penalty levied against CITY by the California Integrated Waste Management Board for failure to perform. RAIN BOW.D 0 C 6/k/04/22/94 5. REAFFIRMATION Except as otherwise specifically modified herein, all other items and conditions of the existing franchise agreement to which this Supplement No. 1 is appended shall remain in full force and effect IN WITNESS WHEREOF, the parties hereto have executed this amendment as of the date first above written. RAINBOW I POS COMPANY, INC. CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California By' print name ITS: (circle one)Chair n/Presiden CicePresiden Mayor By. APPROVED AS TO FORM: �-e- print name all ITS: (circle one)Secretary/Chief Financial Officer/Ass Secretary-Treasurer ity Attorney ��y_41r S gL} ATIUVIAND -2 � \\ APPROVED: RAINBOW TR NSFER AND RECYCLING, INC. Director of Public Works By: illee print name ITS: (circle one)Chair an/Presiden ice resident By: ' print name ITS: (circle one)-secretary/Chief Financial Officer/Asst. ecretary-Treas ATT T: City Clerk R E AND OV City Administra or RAINBOW.D O C 6/k/04/12/94 �r REQUES f FOR CITY COUNCIL ACTION Date October 3, 1994 Submitted to: Honorable Mayor and City Council 0- Submitted by: Michael T. Uberuaga, City Administrato APPROVED By CITY COUNCIL pared by: Ray Silver, Acting Director of Public Works � — D -3 19�( Subject: COMPACTED REFUSE RATES — + I'YC.EiZK Consistent with Council Policy? [A Yes [ I New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: A rate schedule for the collection and disposal of compacted commercial refuse needs to be established. RECOMMENDED ACTION: Approve the implementation of a rate schedule for compacted commercial refuse that would be equal to twice the rate for standard non-compacted commercial refuse. ANALYSIS: When the Refuse Collection and Disposal Services Franchise Agreement was established with Rainbow Disposal in 1990, it did not include a rate schedule for compacted commercial refuse. This was because there were no compacted commercial customers at that time. However, because two such customers have emerged and more are anticipated, a rate schedule must be established. In accordance with the agreement, staff has meet with Rainbow and negotiated a schedule of twice the standard commercial (bin service) rate for compacted commercial collection. On the attached rate schedule Compacted Service is item "B" under Commercial (Bin Service) Rates. Compacted commercial refuse is refuse which has been compressed into high density blocks normally 2 to 3 times the weight of standard non-compacted waste. The two Huntington Beach customers are an electronics store and a shopping center. Plo 5/85 PAGE -2- RCA: - COMPACTED REFUSE RATES ENVIRONMENTAL STATUS: Categorically exempt. FUNDING SOURCE: No funds required. ALTERNATIVE ACTION: Reject the recommendation and establish a rate schedule different than that proposed. ATTACHMENTS: City of Huntington Beach refuse rates sheet. CITY OF HUNTINGTON BEACH REFUSE RATES EFFECTIVE THROUGH JUNE 30, 1995 RESIDENTIAL (Trash Can) RATE: Flat Rate: $15.20 per residential unit per month. COMMERICAL (Bin Service) RATES: A. Standard Service (shown in dollars per month). BIN SIZE: 1 CU. YARD 2 CU. YARD 3 CU. YARD PICKUPS 1 x Week 48.41 79.11 99.88 PER WEEK: 2 x Week 77.21 116.06 153.93 3 x Week 98.13 149.01 214.02 4 x Week 109.92 177.30 257.59 5 x Week 129.55 218.69 328.89 6 x Week 150.45 252.49 385.74 Contractor may add a$7.50 charge per bin per pickup for push-outs over 30 feet, and a$5.00 charge per month per bin in an enclosure. B. Compacted Service (3 Cu. Yard Only, in dollars per month. Add 25% for 4 Cu. Yard.) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week 199.76 307.86 428.04 515.18 657.78 771.48 C. Temporary Service SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 37.00 per load 3 Cu. Yd. Rent-A-Bin Weekend 47.00 per load 35/40 Yd. Drop Off Box* Three (3) days $318.00 per load 35/40 Yd. Drop Off Box* Five (5) days 345.00 per load 10/15 Yd. Drop Off Box** Three (3) days $350.00 per load 10/15 Yd. Drop Off Box** Five (5) days 380.00 per load *Highside (6 tons max). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dumping fees, and customer may have to order an another container to comply with State of California weight limitation laws. �, CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK October 4, 1994 Rainbow Disposal Company, Inc. Post Office Box 1026 Huntington Beach, CA 92647 The City Council of the City of Huntington Beach at their meeting held October 3, 1994 approved the implementation of a rate schedule for compacted refuse that would be equal to twice the rate for standard non-compacted commercial refuse. Enclosed is a copy of the rate schedule for your records. If you have any questions regarding this matter please call the Office of the City Clerk(714) 536-5227. Connie Brockway City Clerk Evelyn Schubert Deputy City Clerk cc: Jim Sankey, Department of Public Works g:cc\cbmcm\pdtech (Telephone:714-536.5227) c . CITY OF HUNTINGTON BEACH CURBSIDE REFUSE COLLECTION SERVICE COSTS In addition to the city's required contract payments to Rainbow Disposal , the Management Services Institute (MSI) Study documented other costs to the City to provide curbside refuse collection service to approximately 44,000 households. These other costs are approximately or $4.25 per month per residence, compared to $11 .57 per month paid directly to Rainbow (July 1 , 1993) . The costs can be placed into four broad catagories; 1) direct costs, 2) general city overhead, 3) departmental overhead, and 4) street infrastructure costs. Staff developed a four year program in May of last year to increase rates to cover $1 .85 per month of the $4.25 per month of costs. 480 per month was implemented July 1 , 1992 and 520 is recommended for adoption July 1 , 1993. DIRECT CHARGES The first category consists of the salary and benefits of a full time customer service representative and a portion of an administrative secretary and department analyst, for a total of $173,874 for fiscal year 1993/94. GENERAL OVERHEAD The second category contains the portion of general city overhead allocated to this service. General City overhead is 7.5% and consists of the costs of City Council , City Administration, City Clerk, City Treasurer, City Attorney, Administrative Services, and non—departmental expenses. The category recognizes costs such as billing, collection, postage, data processing, accounting, auditing, budgeting, cash management, compliance with State law on fee increases, public hearings, etc. Also included is time spent on activities such as compliance with recycling law, and coordination with County officials on landfill issues. For refuse collection service, this cost totalled $391 ,448 for the fiscal year ending June 30, 1991 , (MSI Study) . • RESIDENTIAL TRASH COLLECTION RATES FOR FISCAL YEAR 1992-93 Recycling City/Area Total/Month Charge* Laguna Hills $13.78 $2.48 Lake Forest 13.78 2.48 Unincorporated 13.78 0.00 Yorba Linda 13.31 0.00 Dana Point 13.25 0.00 Laguna Niguel 13.25 0.00 San Clemente 13.25 0.00 San Juan Capistrano 13.25 O.b0 Villa Park 12.85 0.00 Rossmore 12.64 0.00 Mission Viejo 12.61 2.72 Los Alamitos 12.58 0.00 Garden Grove 12.30 0:00 Seal Beach 12.25 0.00 Fountain Valley 12.00 0.00 Huntington Beach 12.00 0.00 Costa Mesa 11.87 2.03 Cypress 11.87 0.00 Santa Ana 11.86 0.00 La Palma 11.85 1.60 Placentia 11.85 1.60 Stanton 11.85 1.60 Brea 11.29 2.79 Anaheim 10.99 3.00 Tustin 10.91 0.00 La Habra 10.56 2.00 Buena Park 10.12 1.60 Irvine 9.92 1.09 Fullerton 9.75 0.00 Laguna Beach 8.58 1.06 Orange 8.19 0.00 Westminster (1) 5.00 0.00 Newport Beach (2) 1.72 1.72 * Included in Total (1) Midway City Sanitation District (2) City Crews (General Funded) RECEIVED CITY CLERw fD� ll/t //Pi/O/i�eelf2 �# iT(►�t;T te' i3_#.r i.CA!(€. C/r<Qnr6er oJf�oniinerfe JON 1 [j 37 PH °9 June 18, 1993 The Honorable Grace Winchell, Mayor and Members of the City Council City of Huntington Beach 2000 Main Street Huntington Beach, Ca. 92648 Subject : Proposed 1993/94 Budget � a Dear Mayo r ' chell: The Huntington Beach Chamber of Commerce appreciates the opportunity to review the proposed City budget for the 1993/ 94 fiscal year. We commend the City Administrator and his staff on the presentation of the proposed budget and the tremendous effort to reduce expenditures in these uncertain and demanding times . During last year's budget process, the City was faced with many of the same fiscal challenges that it faces today--how to provide services along with its ability to generate and sustain revenues . At that time, (see attached letter dated February 21, 1992 ) , the Chamber of Commerce recommended that the City adopt a policy of "Back to Basics, " as many private -companies have been forced to do to survive the recessionary economy. We wish to reiterate this suggestion as you consider adopting the budget for the upcoming year. While we applaud the general direction the City has taken in reducing overall expenditures and trying to link the cost of special services with those users who directly benefit from such services, we are deeply concerned with the continuing trend of new fees and increases in existing fees imposed upon the business community. Such increases seriously threaten the formation and growth of businesses that so significantly contribute to the City's tax and revenue base. Before you adopt the proposed budget, we ask you to consider the following suggestions : 1. Freeze all proposed fee increases listed under Fire, Public Works, and Community Development Departments. A freeze is recommended on fee increases for "non elective" services, such as the processing of conditional use permits and environmental assessments. The Chamber is concerned that the MSI study serves only to recapture the City's costs for services without analyzing the need for or efficiency in 2100 Main Street,Suite 200 Huntington Beach,CA 92648 • 714/536-8888 (FAX)714/960-7654 ACCR901TEO providing such services . It continues doing, "Business as Usual. " Similar fee increases were adopted in last year' s budget, however there has been no accounting of how much of the projected revenue was actually realized. 2. The City should utilize private sector businesses or contractors to supplement or replace City staff wherever possible. This strategy generally results in lower costs to the taxpayers due to competition and in turn stimulates local businesses, taxes and revenues . 3. The City should consider shared use of its capital equipment with other agencies and businesses. The example of the Police and Fire Departments' intercity agreements should be followed by other departments to maximize the City's return on its investments . 4. The City must adjust its processes and manpower based on the demand for and ability to support services provided. In times of limited revenue, the City should follow the "Back to Basics" policy adopted by most private companies . Services must be provided in a more efficient manner and duplicative processes and surplus manpower must be eliminated. Businesses cannot simply raise the costs of services without providing better products or more efficient service--the City should follow this example. We share your pride in seeing Huntington Beach named "The Best City in California" for business , and we encourage you to do what it takes to maintain this title. Once again, thank you for the opportunity to provide input into the budget process . Sincerely, Pau E. Cook Chairman of the Board PC/sj Enc. cc: Uberuaga Silver AU :,t, �un`f�ir�?on�ea c�c C�iairr6er of�orrnrerce . February 21 , 1992 The Honorable Jim Silva , Mayor and Members of the City Council City of Huntington Beach 2000 Main St . Huntington Beach , CA 92648 Subject : Budget Recommendations Dear Mayor Silva : The Huntington Beach Chamber of Commerce is honored to be a part of the solution to the budget problems the city is experiencing by providing; the following recommendations . Our Board of Directors , committees and task forces have been priviledged to receive briefings by city staff on the current situation , the MSI study and both staff' s and the Budget Review Task Force ' s recommendations . After due consideration of all of the information presented our Board of Directors has adopted the following recommendations to assist the city in solving its budget problems not only in the short run , but over the long term as well .' Basic to the solution is the question : Should the city be offering the service in the first place? This also encompasses the questions : What services should the city be offering beyond the basic safety , health and public works? What services now being offered can be eliminated ? What benefit does the public derive from the service? 2213 Main Street,Suite 32 Huntington Beach,CA 92648 714/536.8588 (FAX)714/960.7654 Tillotson - 2/20/92 - p . 2 The answer to these questions lies beyond the scope of the MSI study and is based not only on factual but political reality . tie feel the city should get "Back to Basics" and no longer conduct "business as usual . '? We recommend that the city undertake to review the services it offers asking the question : "Do we need to offer this service to the public and if we do what segment of the public benefits from it?" We are interested in working with the City Council and staff to offer suggestions for services that are not necessary or do not provide a significant public benefit . Following along this line is the need to review the efficiency of the city operation . In some instances there is duplication of services and in others the private sector can offer the same service either at a lower cost or at no cost to the city . We recommend that the city undertake an efficiency study analysing ways to decrease the size of the city bureaucracy . Much concern has been expressed over the finding in the MSI Study that the city is not setting aside funds to replace and repair its infrastructure . We feel the MSI suggestions regarding funding of infrastructure replacement are greatly overstated . We recommend that the city begin to budget as much as is prudent to meet the infrastructure needs of the city . Another major issue in the budget deliberations has been over the wisdom of beginning capital projects such as the library expansion and pier plaza during a time of recession . We agree with city staff , that given a revenue stream from the project that will service the debt incurred , a down economy is the best time to begin major projects since lower construction costs can often be negotiated . We recommend that the council review the major public projects being proposed and if the revenue potential is there, undertake the project . The Chamber wants to work in concert with the city on economic development as well as business retention and expansion . We recommend that no budget cuts be made in the area of economic development but rather that those efforts be increased . Tillotson - 2/20/92 - P . 3 Finally we must deal with the issue of increasing fees . Nobody wants to pay more , but nobody will argue against paying a fair price for what they get . Our Board supports fair pricing of services , provided those services are necessary , are provided efficiently and provide a significant public benefit . We recommend that the City Council balance the MSI Study with an examination of the necessity of the city services for which fee increases are proposed . This is Just the beginning of our Chamber' s efforts to encourage all levels of government to get " Back to Basics . " Basics such as balanced budgets , streamlined services and encouraging business development . We will be pleased to continue our dialogue with the city and continue supporting efforts to make Huntington Beach a great place to live , work and play . Sincerely , H;irman ee V . Tillotson of the Board HVT : mmd cc : Nike Uberuaga , City Administrator Ray Silver , Assistant City Administrator Robert Franz , Deputy City Administrator THE. SURF CITY, F,_.,ADRTIOII June 19, 1993 Honorable Mayor and City Council City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Subject: Fees for Community Events Honorable Mayor and City Council, As you know, I was chairman of the Pierfest 92 celebration last year. This year, Pierfest 93 is being organized by the Surf City Foundation of which I am a founder and Co-chairman with Dean Torrence. The Surf City Foundation is a non-profit corporation whose purposes are to: * Project and promote Huntington Beach as "Surf City", the ideal visitor destination and entertainment location. * Produce special sporting events and musical concerts in "Surf City". * Donate net proceeds to worthy charities. Pierfest 93 is a City celebration featuring beach and ocean events as well as musical groups performing all day on the weekend of August 21st and 22nd. This event was sanctioned by the City Council several months ago. I have read with obvious concern about the City Council's deliberations regarding fees and charges for community events put on by volunteers. My position on this matter should be obvious. Last year I personally donated hundreds of volunteer hours to Pierfest 92 as did many others. It is certainly not too much to ask that the City waive fees for an event like this considering the revenue and positive publicity it brings to the City. Last year I and some other volunteers sold T-shirts on the pier for several weeks after Pierfest 92 just to pay our expenses for that event. Since this is purely a community celebration, you surely must agree that it is not fair to expect us to do that every year in order to pay city fees and charges. 211 IIMRIR STREET HUATIAGTOA BEACH, CH 92648 (?14)960-0560 I would suggest that you form an ad-hoc committee of staff, City Council and persons involved in some of these events, including myself, to draft a policy which would be fair to volunteer groups such as the Surf City Foundation and other Huntington Beach non-profit corporations or charities. In the meantime, I urge you to waive fees and charges for Pierfest 93. 1 Sincerely, Paul E. Cook Co-chairman cc: Mike Uberuaga Ray Silver Ron Hagan CITY f i=E0 c vl y � HUNTtkt;T{:Oti, 32 '33 8877 Tulare 309B Huntingcon Beach, CA 92646 .tune 21 , 1993 714 314 1-557 City Council C/o City Clerk Ciry Hall iluntington Beach, California re: Fiscal Year I993-94 Budget Gentlemen: The purpose of this letter is co request that funding for the Literacy Program be maintained, at the very least, at the level of the 1992-93 fiscaI year. If possible, additional dollars should be directed to this most productive of programs. A 11brary card for a five year old youngster is a gift for life. The gifc of literacy for a adult is a treasure shai I with the family and the community. In this era of shoe~ attention spans, 15 to 30 second sound bites, high graduating functional illiterates, an employment base that requires an educated population, fut:ding Cl.e Lit-ecacy Program is a gift not only to to ourselvies, but a gift to Posterity. The professional staff of the Program is However, without their expertise, dedication, attention and Pncouragement, the Program will wither and terminate. Funds vested in this Program are not returned to the public on a dollar for dollar basis, rather the return is much higher. Children who see their parents read are given a direct message that reading is important. It isl When a mother or father picks up a newspaper, magazine or a book, a positive V d _ � .Lune 21 , 1993 City Council re: Fiscal Year 1993-94 Budget Page 2 message is relayed to their children. In a world with a substantial number of messages related to violence we need positive messages the open the minds and imaginations of the population in particular tha minds of children and young adults. As an aside, I am pleased to report, my associate now is comfortable with his new Ianguage skills to speak at corporate meetings and with vendors. He is acquainted with the computer on a primary basis and is anxious to proceed to the next level . I encourage the City Council to continue the Program, maintain the funding at the level which make it effective., Arid consider providing funds adjusted, at a minimum, for inf latiorn. i hbea. litp.DO6166 -- >1 1-1�': r.PJA Fug CITY OF 1-- UNTINGTON BEACH 179 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK May 11, 1994 Rainbow Disposal Company,Inc. Rainbow Transfer Company,Inc. 17121 Nichols Street Huntington Beach, CA 92647 The City Council of the City of Huntington Beach at the regular adjourned meeting held May 4, 1994 approved Supplemental Agreement No. 1 to the franchise agreement between the City of Huntington Beach and the Rainbow Disposal and Rainbow Transfer and Recycling Companies. A copy of the executed agreement is attached for your records. Sincer�rely, �%�d��%lLC�i 4Ae'6AA& Connie Brockway, CMC City Clerk g:clerk\cbmem\rainbow 1 Telephone:714-536-5227) CERTIFICATE' OF INSURANCE ISSDE D2T/03//D/9Y4) i PRODUCER' THIS CERTIFICATE IS ISSUED As A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE Solid Waste Ins . M r s . DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE I g POLICIES BELOW. I P .G . Box 7072 Pasadena, C A . 91109 COMPANIES AFFORDING COVERAGE COMPANY A j LETTER C O r e 9 i S !j COMPANY B INSURED LETTER C O r e.a l s Rainbow Disposal Company, Inc . COMPANY i Rainbow Transfer Company, Inc . LETTER C 17121 Nichols Street COMPANY i Huntington rich . CA 92647 LETTER D i COMPANY E LETTER COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD j INDICATED, NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS j CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. !CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS jLTR DATE(MM/DD/YY) DATE(MM/DD/YY) GENERAL LIABILITY rT9T 111 2/01/ 4 2/O 1/9 5 GENERAL AGGREGATE $ 2000000 X COMMERCIAL GENERAL LIABILITY PRODUCTS-COMP/OP AGG. $ 1006000 CLAIMS MADEX OCCUR. PERSONAL&ADV.INJURY $ 1000000 j X OWNER'S&CONTRACTOR'S PROT. Id EACH OCCURRENCE $ 1000000FIRE DAMAGE(Any one tire) $ 50000 j t15{ MED.EXPENSE(Any one person) $ 5000 19 AUTOMOBILE LIABILITY —T 7 1 J 1�1 O 2/0 1/9 4 2/O 1/9 5 COMBINED SINGLE $ 1000000 ANY AUTO LIMIT I ALL OWNED AUTOS BODILY INJURY $ SCHEDULED AUTOS ___ - -; `.'_'„ � - (Per person) X HIRED AUTOS BODILY INJURY I X (Per accident) $ NON-OWNED AUTOSdw GARAGE LIABILITY PROPERTY DAMAGE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM jWORKER'S COMPENSATION STATUTORY LIMITS AND EACH ACCIDENT $ I r i DISEASE—POLICY LIMIT $ I EMPLOYERS'LIABILITY DISEASE—EACH EMPLOYEE $ OTHER 1 i I DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS IENDCRSEMENT CG2010 ATTACHED IRE : RUBBISH HAULING CERTIFICATE HOLDER CANCELLATION ~� _SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF H U N T I N G TO N BEACH EXPIRyTION DATE THEREOF, THE ISSUING COMPANY WILL RISK MANAGEMENT DIVISION MAIL 3 U DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE 2000 MAIN STREET LEFT, ATION OR . HUNTINGTON BEACH, CA 92648 S. AUTHORIZED REPRESENTATIVE ` ACORD 25-S (7/90). ©ACORD CORPORATION 1990 D 1- 10 A 6d). CERTIFICAT= OF INSURANCE ISSUE DATE(MM/DD/YY) i _ 2/03/ 94 PRODUCER- THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND ! CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE 1 S o I i d Waste Ins . M r s . DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE 9 POLICIES BELOW. } P.G. Box 7072 COMPANIES AFFORDING COVERAGE Pasadena, CA. 91109 ! COMPANY A j LETTER C o r e g i s COMPANY B 1INSURED LETTER C o r e 9 i s Rainbow Disposal Company, Inc . COMPANY Rainbow Transfer Company, Inc. LETTER C 17121 Nichols Street COMPANY D Huntington rich . CA 92647 LETTER I COMPANY E j LETTER !( COVERAGES f THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS �LTR ^DATE �(MMM//DD/YY) DATE(MM/DD/YY) 1 A GENERAL LIABILITY ?1 3 O L/ V 1/9 4 2/O 1/9 5 GENERAL AGGREGATE $ 2000000 i X COMMERCIAL GENERAL LIABILITY PRODUCTS-COMP/OPAGG. $ 1000000 CLAIMS MADEX OCCUR. PERSONAL&ADV.INJURY $ 1000000 '; X OWNER'S&CONTRACTOR'S PROT. EACH OCCURRENCE $ 1000000- , FIRE DAMAGE(Any one fire) $ 50000 ` MED.EXPENSE(Any one person) $ 5 0 0 C iB AUTOMOBILE LIABILITY —�WTi�913r10� —� 2/O1/94 —2/O1/95 v $ 1000000 ' i X COMBINED SINGLE 1 ANY AUTO LIMIT i I I ALL OWNED AUTOS 4�,�' - BODILY INJURY i SCHEDULED AUTOS _ _ (Per person) $ X HIRED AUTOS �`• BODILY INJURY X (Per accident) $ NON-OWNED AUTOS �J�afw + GARAGE LIABILITY PROPERTY DAMAGE $ EXCESS LIABILITY EACH OCCURRENCE $ i i UMBRELLA FORM AGGREGATE $ i ` OTHER THAN UMBRELLA FORM WORKER'S COMPENSATION STATUTORY LIMITS EACH ACCIDENT $ ` AND `� 4= ` '"•"' DISEASE—POLICY LIMIT $ I EMPLOYERS'LIABILITY DISEASE—EACH EMPLOYEE $ i OTHER l I l DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS 1ENDCRSEMENT CG2010 ATTACHED IP.E : RUBBISH HAULING CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIR TIQN DATE THEREOF, THE ISSUING COMPANY WILL CITY OF H U N T I N G TG N BEACH U MAIL DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE RISK MANAGEMENT DIVISION 2 0 C O MAIN STREET LEFT, ATION OR S. HUNTINGTCN REACH, CA 92648 AUTHORIZED REPRESENTATIVE � Q — ACORD 25-S (7/90), ©ACORD CORPORATION 199b D _ 10 mom :rTr- 4fl}' ISSUE DATE(MM/DDJYY) CERTIFICATE OF INSURANCE '`# - _ 4 _. :y,✓ . . 1/28/9 INFORMATION ONLY AND ,ODUCER THIS CERTIFICATE IS ISSUED.AS: IFICATE HOLDER. THIS CERTIFICATE E.CP CONFERS NO RIGHTS UPOMTH .R1 THE COVERAGE AFFORDED BY THE EXTEND OR`AL7 Solid Waste Ins . M g r s . DOES NOT AMEND, POLICIES BELOW. j P .G. Box 7072 PING COVERAGE j Pasadena, CA . 91109 COMPANIES AFFOA j COMPANY A LETTER COMPANY B INSURED LETTER ' ( Rainbow Disposal Company, Inc . ^ ._._ COMPANY Rainbow Transfer Company, Inc . LETTER C 17121 Nichols Street COMPANY Huntington Bch . CA 92647 LETTER D Uni care COMPANY E LETTER { COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSUPtD UTAED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHEA OOCUI�E J S STUB ECT O ALL THE I TERMS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIOCO HEF._ EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CL'OJMO• CO+1 EXPIRATIOM LIMITS L R TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY MkWO DATE(MAT/DDIYY) OAT!(M�DdfM GV6fFt:_AGGREGATE $ GENERAL LIABILITY r, �ITS.COMP/OP AGG. $ COMMERCIAL GENERAL LIABILITYp/fcyL&ADV.INJURY $ f CLAIMS MADE OCCUR. $ } Eli.�/f URAENCE OWNER'S&CONTRACTOR'S PROT. ' '- _ •_ ._•. -' FIRE DA.t/.AGE(Any one fire) $ IAED E-,-,NSE(Anyone person) S r I GOu�a:=_D SINGLE $ AUTOMOBILE LIABILITY LjJAJT I ANY AUTO s1': '` . dfJ✓ • :tUURY $ j ALL OWNED AUTOS (ptr SCHEDULED AUTOS - HIRED AUTOS (ptr I NON-OWNED AUTOS GARAGE LIABILITY pµCf/-_-PT'DAMAGE $ I I GCCURRENCE $ EXCESS LIABILITY I ._��AGG" 'TE $ I UMBRELLA FORM i ! OTHER THAN UMBRELLA FORM : /9�I. i ATUTOR!U1L1T5 U d7 WORKER'S COMPENSATION EAC,ASCIDENT $ 100000( I AND DISct-S=—POLIC!L.1„!T $ 1000001 i EMPLOYERS'LIABILITY DISE:SE—EACr EMPI-OYES $ 1000001 I I OTHER ( I DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS 10 DAY NO,rCE C,= A`, t.�:.•:C^!IN E : ALL OPERATIONS AS RESPECT RUBBISH HAULING T)4EEI/'rTt" il.'I„ CERTIFICATE HOLDER CANCELLATION DESCRIBED POLICIES E= CANCELLED BEFORE TH I SHOULD ANY (11' 1111' ^)In OF. THE ISSUING EXPIRATI DAII_ • COf�%�':'! WILL ENDEAVOR t O II11' ":.1.:_ CITY OF HUNTINGTON BEACH ETOTHE- CERTIFICA7_ HOLDER NAMED TOTH MAIL DAY`I 1N111 .SUCH NOTICE SHALL IM-POSE NO OBLIGATION 0 RISK MANAGER LEFT, BUT FAil.l II11' I I I P O BOX 71 1 �t fiFiE COMPANY. ITS !ii-_OR REPRESENTATIVE HUNTINGTOti 9EACH, CA 92648 LIABILITY OF ANY101 r AUTHORIZED REPI1Gar 4/J CORP6RATION¢11 1 ISSUE DATE(MM/DD/YY) AW.W. CERTIFICATE OF INSURANCE ';:;' 1/2 8/4 4 OF INFORMATION ONLY AND .ODUCER THIS CERTIFICATE IS ISSUED AS. )I`1CATE HOLDER. THIS CERTIFICATE CONFERS NO RIGHTS UPON-THE CEO THE COVERAGE AFFORDED BY THE Sofia Waste Ins . M g r s . DOES NOT AMEND, EXTEND OR ALTO POLICIES BELOW. i P .G . Box 7072 PING COVERAGE I Pasadena, CA . 91109 COMPANIES AFFOR I - jCOMPANY A } LETTER i COMPANY B INSURED LETTER kainboW 0iS posa I Company, Inc .Inc COMPANY C 4aintow Transfer Company, Inc . LETTER 17121 Nichols Street COMPANY D Nuntinaton Bch . CA 92647 LETTER Unicare f COMPANY E I LETTER COVERAGES _ THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSUREDII «ED ABOVE FOA THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER pQCUlgoi IS SUBJECT TO ALL THE TERMS, WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED NEF.£Ita 1 EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID Ct,4jM8' LIMITS CO TYPE OF INSURANCE POLICY EFFECTIVE POLICY MM/DOIM ILTR POLICY NUMBER DATE(t\4MIDD/YY) DATE( _ AGGREGATE $ GENERAL LIABILITY -COMPIOP AGG. $ pgOfi COMMERCIAL GENERAL LIABILITY ADV. INJURY $ I ' CLAIMS MADE OCCUR. .� Ear�y�GURR S I ENCEOW'NER'S&CONTRACTOR'S PROT "�'�• i W i1pE OAJ/,AGE(Any one tire) $ I :SE(Anyone person) S i AUTOMOBILE LIABILITY SINGLE ulA/� I ANY AUTO brjo it:JURY 3 ALL OWNED AUTOS .- (P«, j SCHEDULED AUTOS -- T wIIIJURY HIRED AUTOS "-- IP«r oxr5nt! ' NON-OWNED AUTOS GARAGE LIABILITY Pi+CI�E=T' DAIAG.G'c 5 i EhG^.C,�-UAAEt;CE S EXCESS LIABILITY 5 j hG G%=�:-.T c i UMBRELLA FORM �I OTHER THAN UMBRELLA FORM _ / ATUTOR'%LI!/•ITS �y �t - r� 1000001WORKER'S COMPENSATION EAG. ;,CCIDENT $ t i AND DIS-1-5•=—?OLIG'!L':!T 5 1000001 EMPLOYERS'LIABILITY DIS1.5=—=AC- Elf?LO'!EE $ 100,0 0& f OIntrt i I DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS 10 DAY NO T X-E.� F'. :._ ,, ^!IN ALL OPERATIONS AS RESPECT RUBBISH HAULIN(% THEEVE�f"OF ,�,; ?�.� CERTIFICATE HOLDER --' CANCELLATION 1 SHOULD ANY (11' IIII- nll�VA`DESCRIBED =OLICIES ?= CANCELLED BEFORE TH IIII'li'A0F. THE ISSU1t,IG CO).!=�':'' WILL ENDEAVOR T CITY OF !7(}fv T I Iv G TQ N BEACH EXPIRAT(ON DA I 1 I I NII"OTICE TO THE CERTIFICATE HOLDER NAMED TO TI- R I S K MANAGER MAIL lJ DAYS-] w�}I -SUCH NOTICE SHALL lj,[,=•OSE NO OBLIGATION C PO" S v X 7 1-1 LEFT, BUT FAIIA II11= 1 I I 't� 7f1E COMPAIhY. ITS 11 i S OR REPRESENTATIVE HUNTINGTC'NI BEACH, CA 92648 LIABILITY OF ANYItIII)/ r AUTHORIZED REPIIr I -t C�ACORD CORPORATION,1 REQUEST FOR CITY COUNCIL ACTION Date: May 2, 1994 Submitted to: Honorable Mayor and City Council AP VED ByIS COU Submitted by: Michael T. Uberuaga, City Administrato 19` Prepared by: Louis F. Sandoval, Director of Public Works o cl., K Subject: SOLID WASTE PROCESSING FACILITY SUPPLEMENTAL AGREEMENT Consistent with Council Policy? [XI Yes [] New Policy or Exception Statement of Issue,Recommended Action,Analysis,Environmental Status,Funding Source,Alternative Action,Attachments: �/ --6i STATEMENT OF ISSUE: A Supplemental Agreement governing the operation of the new solid waste processing facility has been negotiated. RECOMMENDED ACTION: Approve the attached Supplemental Agreements an adjunct to the existing Refuse Disposal Franchise. ANALYSIS: On April 6, 1992, the City Council approved, and the State of California later accepted, an Integrated Waste Management Plan (IWMP) for the City of Huntington Beach wherein the primary method of waste diversion would be provided by a Solid Waste Processing Facility(also known as a MRF or Materials Recovery Facility). The adoption of this plan enabled the City to conform to the mandate of the California Integrated Waste Management Act of 1989 (also known as AB 939) which required the City to divert 50% of our waste stream from land filling by the year 2000. In response to AB 939 and in accordance with the IWMP, the City entered into franchise agreement with Rainbow Disposal, a portion of which called the construction of a MRF. The new facility is nearing completion, and a Supplemental Agreement governing the operation of same has been negotiated in accordance with the requirements of the franchise. The terms are as follows: 1. Compensation to Rainbow Disposal, the contractor, will be uniform and based upon the weight of the material processed. A rate of$15.00 per ton has been negotiated, which compares favorably with other California MRF facilities. A summary of data supplied by the National Solid Waste Management Association and the California Integrated Waste Management Board is attached. A RCA- Solid Waste Supplemetnal Agreement May 2, 1994 Page 2 At $15.00 per ton, the cost per residential unit of service will be $3.00 per unit per month through June 30, 1995. The cost of commercial service will be $3.33 per cubic yard of material removed per month during the time period of July 1, 1994 to June 30, 1995 inclusive. These costs are detailed in the attached MRF Data Sheet (see"Local Costs" on Attachment No. 2). 2. Future adjustments in compensation after June 30, 1995, will be based upon a review of the actual cost of plant operation adjusted by the revenue derived from the sale of the recyclables, but may not exceed the annual Los Angeles - Anaheim-Riverside All Urban Consumer Price Index nor occur more than once per year. 3. The contractor will meet all reporting requirements of both the State of California and the City of Huntington Beach. 4. The contractor will not offer anyone a better price for use of the facility than the City of Huntington Beach, and will guarantee the ability of the facility to achieve the diversion quota of material processed set for the facility in the IWMP. ENVIRONMENTAL STATUS: Categorically Exempt FUNDING SOURCE: User fees. ALTERNATIVE ACTION: Reject the Supplemental Agreement and advise staff on how to proceed. ATTACHMENTS: Supplemental Agreement No. 1 MRF Data Sheet LFS:JS:dw mrfagrmt SUPPLEMENTAL AGREEMENT NO. 1 TO THE FRANCHISE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE RAINBOW DISPOSAL AND RAINBOW TRANSFER AND RECYCLING COMPANIES THIS SUPPLEMENTAL AGREEMENT made and entered into this day of L2&t. , 1994, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, (hereinafter referred to as "CITY"), and the RAINBOW DISPOSAL COMPANY, INC., joined by RAINBOW TRANSFER AND RECYCLING, INC., both California corporations, hereinafter referred to collectively as "CONTRACTOR.' RECITALS WHEREAS, CITY and CONTRACTOR have previously entered into a franchise agreement dated February 5, 1990, wherein CONTRACTOR was required to provide a solid waste processing facility; and CITY and CONTRACTOR agreed the costs of operation of said facility would be borne by the users of the facility; and CITY and CONTRACTOR have met in accordance with said agreement and established charges for the use of this service: NOW, THEREFORE, CITY and CONTRACTOR do hereby agree as follows: 1. COMPENSATION A. CITY shall collect and pay to CONTRACTOR, for operation of a solid waste processing facility, the sum of Three Dollars ($3.00) per month for each Residential Unit of Service rendered in CITY during the period commencing 30 days prior to the opening of the facility and extending through June 30, 1995, inclusive. B. CONTRACTOR may collect a monthly fee for the operation of said facility from Non-Units of Service in an amount not to exceed a rate schedule approved by CITY. Said schedule shall be shown as Exhibit A.1 of this Supplemental Agreement and shall become effective July 1, 1994, and extend through June 30, 1995. 2. ADJUSTMENT A. CITY and CONTRACTOR agree to meet at least 90 days prior to June 30, 1995, to review the compensation provisions of this agreement and to make such adjustments as are deemed necessary. Any adjustment made at this time shall be effective July 1, 1995, and shall be based upon a consideration of the data, as specified in Section 20 of the Franchise Agreement, obtained from the first year of facility performance. Said data shall include but not RAIN BOW.DOC6/k/04/22/94 • t � 'i i be limited to such factors as the actual cost of plant operation and the resale value of the materials collected at the facility. B. Beginning July 1, 1996, and continuing for the life of this agreement, changes in compensation for each subsequent year shall not exceed the percentage of increase or decrease in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area from April to April of the preceding twelve (12) months. C. No more than one negotiated rate change shall be made in any twelve (12) month period. However, either CITY or CONTRACTOR may propose modification of an established rate in order to assure the overall fairness of the rate structure. D. Should a dispute arise over the setting of a new rate or rate schedule, CITY and CONTRACTOR agree to continue the compensation plan then in effect until the dispute is resolved with the provision that the settlement be retroactive to the beginning of the payment period. 3. REPORTING REQUIREMENTS A. CONTRACTOR shall as part of this agreement maintain such records on the composition and disposition of materials collected at the solid waste processing facility as may be required for reporting purposes by the California-Integrated Waste Management Board. B. CONTRACTOR also agrees to provide CITY with such statistical data on the operation of the facility and/or the materials processed by same as CITY may deem necessary. 4. OTHER PROVISIONS A. CONTRACTOR shall be free to establish service rates for refuse processed by the facility but collected outside the CITY limits so long as those rates are never less than the rates charged for this same service to service users within CITY. B. CONTRACTOR shall become owner of all solid waste delivered to the facility and shall have the exclusive right to market all recyclable materials reclaimed therein. C. CONTRACTOR shall at all times be solely liable for any and all expenses incurred pursuant to the marketing of said materials. D. CONTRACTOR warranties the ability of the facility to meet the diversion quota established for same in the CITY's Integrated Waste Management Plan in conjunction with other diversionary and reduction programs. Should CONTRACTOR fail to meet the quota due to any fault or failure of CONTRACTOR then CONTRACTOR shall be liable to pay any fine or penalty levied against CITY by the California Integrated Waste Management Board for failure to perform. RA 1 N B O W.D O C M/04/22/94 1 5. REAFFIRMATION Except as otherwise specifically modified herein, all other items and conditions of the existing franchise agreement to which this Supplement No. 1 is appended shall remain in full force and effect IN WITNESS WHEREOF, the parties hereto have executed this amendment as of the date first above written. RAINBOW I POS COMPANY, INC. CITY OF HUNTINGTON BEACH, A municipal corporation of the State of Bye � California print name ITS: (circle one)Chair n/Presiden ice Presiden Mayor By' APPROVED AS TO FORM: print name all ITS: (circle one)Secretary/Chief Financial Officer/Ass Secretary-Treasurer ity Attorney INITIATED AND APPROVED: RAINBOW T NSFER AND RECYCLING, , INC. Director of Public Works BY= print name ITS: (circle o4Chhairan/Presiden ice resident By: c print name ITS: (circle one Secretary/Chief Financial Officer/Asst. ecretary-Treasu AT-13F City Clerk y �� R AND V City Adminlstra or RAIN BOW.DOCM104/12/94 Attachment 2 MRF Data Sheet Processing Cost USA average: $50.00 per ton before sales revenues (National Solid Waste Management Association). Local Costs The proposed MRF Agreement established a base rate of $30.00 per ton before adjustments with a 28.2% minimum diversion from landfilling for material processed guaranteed by the contractor. Per ton adjustments include deductions of $1.03 for transportation, $5.69 for landfill fees, and $8.28 for material salvaged. This results in a net processing fee of $15.00 per ton: Base Rate: $30.00 per ton Deductions: 1.03 per ton saved in transportation costs 5.69 per ton saved in landfill fees 8.28 per ton credited in salvage value Net Cost: $15.00 per ton for MRF processing City waste generation studies show that the average residence produces 400 lbs of refuse per month (92.5 lbs. per week) while a commercial bin averages 440 lbs. of refuse for each cubic yard of storage capacity per month. The 400 residential pounds equals one fifth or .20 of a 2000 lb. ton (400/2000 = .20) with .20 ton equating to the $3.00 per month rate ($15.00 per ton x .20 = $3.00). And the 440 pounds per cubic yard commercial rate equals .222 of a ton (440/2000 = .222) with .222 ton equating to $3.33 per cubic yard rate ($15.00 per ton x .222 = $3.33). Per Ton Rate Comparisons* CALIFORNIA: ORANGE COUNTY: San Jose Recycling $15.00 Costa Mesa $12.50 (1) Marin Recycling 16.50 Newport Beach 15.00 L.A. BFI Recycling 16.50 HUNTINGTON BEACH 15.00 (2) San Diego Recycling 18.00 Fountain Valley 15.00 Riverside Recycling 22.00 (2) Midway City S.D. 15.00 Orange 16.25 (2) Seal Beach 17.50 La Palma 17.50 Buena Park 17.50 Anaheim 18.00 Fullerton 18.00 (2) (1) Expires in 1995 (2) Proposed `California Integrated Waste Management Board MRF: 03-29-94 . . ` ` _ EXHIBIT A. 1 , SUPPLEMENTAL AGREEMENT NO. 1 SOLID WASTE PROCESSING FACILITY COMMERCIAL SERVICE RATE SCHEDULE Size of Number of Monthly Service Container Pick-ups per Week Rate _________________ _______________ 1 Cu. Yard Dumpster 1 $ 3.33 2 6. 67 3 10.00 4 13. 33 5 16.67 6 20.00 2 Cu. Yard Oumpster 1 $ 6.67 2 13.33 3 20.00 4 26. 67 5 33.30 6 40.00 3 Cu. Yard Qumpster 1 $10.00 2 20.00 3 30.00 4 40.00 5 50.00 6 6O. 00 REQUE' T FOR CITY COUNC. _ ACTION Date June 21, 1993 Submitted to: Honorable Mayor and City Council Michael T. Uberuaga, City Administrator AP OVED $ Submitted by: Y CITY COUNCIL Prepared by: Louis F. Sandoval, Director of Public Works DUMPSTER SERVICE RATES --� Subject: R• �p �/LQ�tY d'h' � ' � i4 A!� CIT CLF.K Consistent with Council Policy? [ 1 Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: �GG� STATEMENT OF ISSUE: The Franchise Agreement with Rainbow Disposal contains an annual rate adjustment formula for commercial (i.e. "dumpster") services. RECOMMENDED ACTIONS: Approve the attached rate schedule to be effective July 1, 1993. ANALYSIS: On February 5, 1990, the City Council entered into a Refuse Collection and Disposal Services Franchise Agreement with Rainbow Disposal. This agreement included both a formula for adjusting "commercial" (dumpster) service rates on an annual basis and a provision for instituting a processing charge once a recycling system was established. In April of 1993, the City Council formed a Refuse Rate Review Committee to oversee the rate adjustment process and to meet with the contractor to establish an equitable recycling charge. This committee met in May and again in June to review the contractor's requests and has agreed to accept the attached rate schedule for the fiscal year ending June 30, 1994. The new schedule, to be effective July 1, 1993, conforms to the rate adjustment formula and grants an overall 1.76% increase to the contractor plus a recyling fee based upon size of service in cubic yards. The result is an overall 8% increase in commercial service rates for the fiscal year. FUNDING SOURCE: None. No funds necessary. ALTERNATIVE ACTION: Disapprove the proposal and direct staff on how to proceed. ATTACHMENTS: Proposed Rate Schedule (effective July 1, 1993) Comparison of New Rates with Old Rates O.C. Commercial Trash Collection Rates P10 5/85 DUMPSTER SERVICE RATE SCHEDULE EFFECTIVE JULY 1, 1993 Size of Number of Pick-ups Monthly Container Per Week Service Rate 1 Cu. Yard Dumpster 1 $ 47.05 2 74AS 3 93.97 4 104.33 5 122.55 6 142.04 2 Cu. Yard Dumpster 1 $ 76.82 2 111.71 3 141.34 4 167.04 5 205.86 6 237.06 3 Cu. Yard Dumpster 1 $ 98.88 2 150.88 3 204.54- 4 242.14 5 309.57 6 362.55 Add a $7.50 charge per dumpster per pick-up for push-outs over 30 feet, and a $5.00 charge per month per dumpster in an enclosure. DUMPSTER SERVICE RATE COMPARISON CURRENT AND PROPOSED Size of Container Current Proposed Pick-ups per Week Service Rate Service Rate 1 Cu. Yard Dumpster 1 $ 44.45 $47.05 2 69.75 74AS 3 87.36 93.97 4 96.05 104.33 5 112.41 122.55 6 130.00 142.04 2 Cu. Yard Dumpster 1 $ 72.30 $ 76.82 2 103.73 111.71 3 130.04 141.34 4 152.S l 167.04 5 187.78 205.86 6 215.63 237.06 3 Cu. Yard Dumpster 1 $ 92.50 $ 98.88 2 139.32 150.88 3 187.75 204.54 4 220.53 242.14 5 282.38 309.57 6 330.15 362.55 O. C. COMMERCIAL TRASH COLLECTION RATES FOR FISCAL YEAR 1993-1993: * City/Area Total /Month Santa Ana 110. 00 Cypress 105..74 Seal Beach 101 .00 Anaheim 95. 39 Fullerton 93. 90 Huntington Beach 92. 50 Yorba Linda 90. 78 Fountain Valley 90. 69 Los Alamitos 90. 41 Stanton 87. 60 Placentia 85. 00 Brea 84. 71 La Palma 83. 62 Tustin 83. 03 Buena Park 81 . 32 Villa Park 81 . 00 Garden Grove 80. 00 Laguna Seach 80. 00 San Clemente 79. 00 San Jaun Capistrano 79. 00 La Har"br•a 78. 64 Irvine 76. 00 Laguna Niguel 72. 91 Lake Forrest 72. 91 Dana Point 71 . 95 Orange 66. 00 Mission Viejo 59. 08 Westm i n i ster 58. 30 , *Comparison of 3 cubic "yar"d bin collected once per week (most common service and basis of normal "compan i sons ) . **Midway City Sanitation District /0•Yp Ices 93 EXHIBIT A. 1 SOLID WASTE PROCESSING FACILITY RATE SCHEDULE Size Plumber of Monthly Service Container Pick-Ups per Week Rate 1 Cubic Yard 1 1 . 33 2 2. 70 3 4.07 4 5. 46 5 b. 83 b 8. 21 2 Cubic Yard 1 2. 45 2 4.97 3 7. 49 4 10. 02 5 12. 52 b 15. 04 3 Cubic Yard 1 3. 71 2 7. 50 3 11 . 27 4 15. 07 5 18. 84 b 22. 61 A M 81management services Institute INCORPORATED 2521 W.LA PALMA AVENUE,SUITE A,ANAHEIM,CA 92801 (714)220-1717 FAX•(714)220-9112 May 20, 1993 Mr. Robert Franz, Dir. of Admin.Services City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Dear Bob, This letter is in response to your request that MSI explain the overhead and infrastructure charges to the Refuse Collection Service (S-174) in the Cost Control System Report dated August, 1991. MSI Methodology on Refuse Contract Refuse is provided by contract at a 1990-91 cost to the City of approximately $5. 2 Million. MSI left the total cost of the contract in the base for computing both the general overhead and the Public Works Department overhead. Some people have suggested that a contract dollar takes less effort to administer than a labor dollar. This is both true and false. On some occasions, MSI has reduced a contract by 50% for inclusion in the "overhead base" to reflect this fact. However, in the present case of refuse, it is MSI's experience that over the long-term, refuse will generate as many problems and require as much administrative effort as a similar dollar amount in employee salaries. Discussion of Overheads It is important to stay focused on the fact that overhead rates are designed to spread overhead costs to operating functions. To the extent that overhead is not recovered on refuse collection, it must be recovered on something else or on everything else. Analysis of the City's General Overhead Rate MSI calculated the City's general overhead rate to be 7.5% based on the total general overhead costs to be recovered for 1990-91 of $8, 829,773 as detailed in Attachment A. Of this total, $391,448 is allocated to refuse collection. The average general overhead rate of MSI's client cities (about one-fifth of California cities) is 10.92%. The conclusion from this fact is that the City has insufficient general administration for its size. Analysis of the Public Works Departmental Overhead Department Overhead. To determine the public works departmental overhead, MSI calculated the cost of the department's general administration which was comprised of the Director of Public Works, the Administrative Assistant and the Senior Departmental Analyst positions. This cost was split one-quarter to each of the four divisions of Public Works. The department overhead share for refuse collection was $42,746. Division Overhead. In addition to the department overhead, the division positions of Division Manager, Engineering Technician, Administrative Secretary, and Office Assistant were allocated to all services performed by the Maintenance Division. The costs of division overhead were $826,541 and involved the analysis of over thirty different budgetary units. Included in the operational costs for this sectional overhead was phone service, data processing, liability insurance and other costs of a general nature. Of the total division overhead amount, $432, 211 was allocated to the refuse service. Department & Division Overhead Combined. The combination of these two levels of departmental overhead totals $474,957. The rate for these two levels was 9. 1%. Summary on Overheads If the refuse contract had been excluded from the overhead base, the City's General Overhead Rate which was charged to all City services would have increased from 7 .5% to 7 .8% and the Departmental Rate for the Maintenance Section would have gone from 9. 1% to 18. 9%. Although different approaches always exist, MSI's professional opinion is that the approach we used is both valid and will be in the City's best interests in the long-term. Infrastructure Replacement A charge of $1,266,244 was included in the refuse service center to assist in the recovery of street replacement costs. MSI allocates 50% of the cost of street replacement to the various utilities that exist above and below the street surface so that the franchise fee, paid by those utilities, is matched to the usage of the City rights-of-way. 10% of the total cost was assigned to refuse collection. In reality, the damage caused by heavy refuse trucks on residential streets probably exceeds the cost estimate that MSI has used. It is recommended that the City Engineer attempt to more accurately compute the damage and that the City use the revised cost in the future. � ? RECYCLED PAPER �,xY, Dire ct Costs In 1990-91, the City incurred approximately $95,306 in direct costs for a Customer Service Representative, postage, collection and billing for the Refuse Collection Service. Another direct cost that the City has recently begun incurring is due to compliance with AB939 Recyling requirements. Although the refuse service contractor must implement the program, City staff have spent many hours developing the recycling program. The costs of this development and on-going monitoring of the contractor's implementation have not yet been quantified. I hope that this information has answered you questions. Sincerely, Albert R. ("Rick") Kerner, Jr. CPA President t ) RECYCLED PAPER FE CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Michael T. Uberuaga, City Administrator FROM: Robert J. Franz, Deputy City AdministratAFee SUBJECT: Public Hearing — Revisions to Comprehensu e DATE: MAY 20, 1992 STATEMENT OF ISSUE: Fees, permits and fines are reviewed annually to ensure that they are appropriate. There is a need to revise selected fees within the City's Comprehensive Fee Schedule for FY 1992/93 in order to implement Phase I of the Management Services Institute (MSI) System. ANALYSIS: The fees recommended for implementation/.increase are derived from the MSI Cost Control System report completed in August, 1991 . As you know, this study identified potential new revenue of $30,571 ,544 if the MSI System were fully implemented. Several presentations of the MSI System have been made since August of last year to the City Council , the Budget Review Task Force and numerous community groups (see attachment) . This public hearing is for the purpose of receiving formal input on the proposed implementation of Phase I fee increases which would result in annual new revenue of $1 ,800,660 from new fees and increases to existing fees. Although the Phase I recommendations are a minor part and small step towards the full implementation of the MSI System, the additional annual revenue of $1 ,800,660 is a significant new source of revenue that is needed in the current budgetary situation to balance the General Fund budget. Hopefully, when public hearings on future implementation phases are held, the new revenue generated from such phases will not be needed for balancing the budget. Under this more desirable situation, the following alternative uses of new revenues can be considered: Restore Expenditure Reductions Infrastructure Maintenance Reduce Taxes Capital Improvement Projects Increased Services to the Public Although the above potential uses of new revenues are not presented in any particular priority order, it is significant that the listing does not include "balance the General Fund budget" which is the primary use for which the Phase I additional revenues are recommended. The MSI Study documented that the City is spending over $30 million more for fee related services than the amount of Alt". k",• PUBLIC HEt--NG - REVISION TO COMPREHENSIVE, «E SCHEDULE fees or revenues that are being collected. Although there is probably no City, that fully charges users for all of the costs of services, it is not unrealistic to think that a City the size of Huntington Beach could reduce tax subsidies of these services by $10 million or more. Staff believes this amount of potential new revenue could be realized and thereby reduce the general taxpayer subsidy of special services such as hazardous material cleanup, plan check services, false alarm responses, drunk driver arrest procedures, zone change reviews, and many other services provided to specific users of services. To reiterate, the Phase I implementation of the MSI System will provide non-tax revenue to cover existing costs for these services. Without such fee increases, the general taxpayer would continue to subsidize these services and additional expenditure reductions in general tax supported programs would be required in order to balance the 1992/93 fiscal year budget. ADDITIONAL BACKGROUND: Since 1982/83, staff has submitted, annually to the City Council , recommendations for revisions to City-wide fees, permits and fines. Each year, as a result of the City Council approving general fee increases, the General Fund has received additional revenue of between $150,000 and $300,000. In addition, from time to time, single issue fees have been approved by the City Council such as the community enrichment library fee and the planning permit processing fee. The incremental effect of these increases means that the City is now receiving (1991/92) approximately $2.3 million more each year than before the annual City-wide review was instituted. This process has helped keep pace with rising City costs for manpower and expenses related to the provision of services for which these fees are charged. The MSI Study has provided a comprehensive documentation of the full costs of these services. FUNDING SOURCE: Not applicable. ALTERNATIVE ACTIONS: 1 . Do not approve fee increases. 2. Approve only selected fee increases. ATTACHMENTS: 1 . Summary charts 2. Summary listing of Phase I (MSI) new and increased fees. 3. Resolution amending the City' s Comprehensive Fee Schedule. 4. Seventeen (17) page listing of detailed fee increases. RJF:skd -2- WPADSERT:911 K f �,7• 1 Fol CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH From Robert J. Franz To Michael T. Uber / �r Deputy City Admin trator City Adminstrator Louis F. Sandoval Subject Date Director of Public Works RESIDENTIAL REFUSE FOR May 21, 1992 FY 92-93 STATEMENT OF ISSUE: City Council approval is required to revise the monthly service charge for residential refuse collection ANALYSIS: In 1991, the City Council created the refuse enterprise fund in order to ensure the perpetual delivery of this essential service. At that time, a base rate of $10.89 per residence per month was set in congruence with the payment due Rainbow Disposal under the terms of their refuse collection contract. However, the practice of charging the resident the same amount as that paid to the contractor is inadequate. This is because there are administrative costs for billing and accounting which the resident does not pay. These costs are borne by the General Fund. To offset these costs, staff recommends the adoption of a refuse rate of $12.00 per residence per month. This represents a 10.2% increase in the rate, but retains the relative position of Huntington Beach to other Orange County cities with respect to refuse collection fees. The $12.00 proposal is an increase of $1.11 over the existing rate of $10.89. Of this increase, $0.48 is due the hauler under the terms of our existing agreement, $0.15 is for the State mandated refuse education element of the City's Integrated Waste Management Plan (adopted on April 6, 1992), and $0.48 is to pay the administrative costs noted above. It should be noted that the $0.48 requested for administrative costs represents only a portion of the General Fund subsidy to the Refuse Fund. A study made by the Chief of Administrative Services indicates a charge of $1.85 per residence per month would be the total cost of all refuse collection support services (see attached Memorandum). A breakdown of the proposed rate structure can be charted as follows: Existing Rate $10.89 Contractual Adjustment .48 State Mandated (AB 939) Public Education and Information Component of IWM Plan .15 City General Fund Costs (Direct Charges, and a portion of General Overhead) .48 Total: $12.00 Request for Council Action Refuse Rates May 21, 1992 Page 2 Adoption of the proposed service rate will ensure the integrity of the refuse fund and relieve a portion of the General Fund subsidy to refuse collection as identified by the _- Management Services Institute (MSI) report. FUNDING SOURCE: -. User fees collected from the public. ALTERNATIVE ACTION: Disapprove the proposal and instruct staff on what further action to take, if any. ATTACHMENTS: Memo: Curbside Refuse Collection Service Costs RJF:LFS:JS:lb 3234g/8 & 9 RESIDENTIAL TRASH COLLECTION RATES RATES ARE CURRENT RATES FOR FISCAL YEAR 1991-92 City/Area Mont Unincorporated 13.78 Laguna Hills 13.78 Lake Forest 13.78 Yorba Linda 13.52 Villa Park . 12.85 Rossmoor 12.64 Seal Beach 12.25 Los Alamitos 11.96 Mission Viejo 11.85 Stanton 11.85 Tustin 11.73 Costa Mesa 11.68 Cypress 11.67 La Palma 11.55 Placentia 11.49 Garden Grove 11.22 Fountain Valley 11.15 Anaheim 10.99 Santa Ana 10.98 Laguna Niguel 10.96 Huntington Beach 10.89 San Juan Capistrano 10.57 Orange 10.50 La Habra 10.41 Newport Beach 10.37 Brea 10.33 Buena Park 10.12 Dana Point 9.99 San Clemente 9.84 Fullerton 9.55 Irvine 9.50 Laguna Beach 8.25 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: LOUIS F. SANDOVAL, Public Works Director FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: CURBSIDE REFUSE COLLECTION SERVICE COSTS DATE: MAY 21 , 1992 In addition to the city' s required contract payments to Rainbow Disposal , the Management Services Institute (MSI) Study documented other costs to the City to provide curbside refuse collection service to approximately 44,000 households. These other costs are approximately or $4.25 per month per residence, compared to $11 .37 per month paid directly to Rainbow. The costs can be placed into four broad catagories; 1) direct costs, 2) general city overhead, 3) departmental overhead, and 4) street infrastructure costs. - Staff recommends a four year program to increase rates to cover $1 .85 per month of the $4.25 per month of costs. DIRECT CHARGES The first category consists of the salary and benefits of a full time customer service representative and a portion of an administrative secretary. In addition, proportionate charges for the building occupancy and the fixed assets used by these individuals are included. The costs for customer billing/collection is also included for a total of $108,429 for fiscal year 1992/93. GENERAL OVERHEAD The second category contains the portion of general city overhead allocated to this service. General City overhead consists of the costs of City Council , City Administration, City Clerk, City Treasurer, City Attorney, Administrative Services, and non—departmental expenses. The category recognizes costs such as accounting, auditing, budgeting, cash management, compliance with State law on fee increases, public hearings, etc. Also included is time spent on activities such as compliance with recycling law, coordination with County officials on landfill issues and investigation of complaints. For refuse collection service, this cost totalled $391 ,448 for the fiscal year ending June 30, 1991 , (MSI Study) . DEPARTMENT OVERHEAD The third category contains the portion of the Public Works Department overhead which is assigned to the curbside refuse collection service function. Departmental overhead for this service contains proportionate charges for the administration and management of the Department, including non—personnel expenses, fixed asset depreciation, and building occupancy. Public Works Department administration of this service includes not only the supervision of employees directly involved in customer services, but also time REFUSE COLLECTION SERVICE COST" spent with the contractor on compliance issues, contract modifications, future planning, budgeting and related issues. Internally, costs include working with other departments on issues such as recycling, billing/collection, budget preparation/justification and public information. These assigned costs totalled $474,957 for the fiscal year ending June 30, 1991 (MSI Study) . INFRASTRUCTURE COSTS The fourth category is the proportinate cost of street infrastructure repair that is attributable to the Refuse Collection service. The use of City streets by the refuse contractor causes damage to streets due to both normal >. use and the extra weight/damage due to heavier than normal vehicles using residential streets on a regular basis. Although cities do not normally include street infrastructure repair costs as part of their refuse collection service costs, the MSI System correctly allocates a portion of this City cost to the refuse collection service, amounting to $1 ,266,244 per year or roughly $2.40 per residence per month. Staff does not recommend recovering this cost from residents. Instead, staff recommends continuation of the funding of street infrastructure repair costs from State and Federal gas tax revenues, supplemented by General Fund revenue received from the new franchise fee being paid by Rainbow Disposal on both their commercial accounts and their transfer station operations. TOTAL COSTS The total cost to provide curbside refuse collection service to the residences of the City of Huntington Beach for fiscal year 1992/93 are estimated as follows: 1992/93 Annual Monthly Cost Cost Per Residence Contract Costs: Rainbow Disposal Contract $ 6,000,000 $ 11 .37 AB 939 Public Education Component 79,200 0.15 City Costs: Direct Expenses $ 108,429 0.21 General Overhead 391 ,448 0.74 Departmental Overhead 474,957 0.90 Sub-Total $ 974,834 $ 1 .85 Street Infrastructure Costs 1 ,266,224 2.40 Total Estimated City Costs (1992/93) $ 8,320,258 $ 15.77 Recommended 1992/93 Rate 6,336,000 12.00 1992/93 General Fund Subsidy $ 1 .984.258 $ .77 -2- WPADSERT:907 REFUSE COLLECTION SERVICE COST" RECOMMENDED RESIDENTIAL REFUSE COLLECTION FEE The current (1991/92) monthly residential refuse collection fee is $10.89 which covers only the monthly charge to the City from Rainbow Disposal . Staff recommends this fee be increased to $12.00 per month, effective July 1 , 1992 which will cover the Rainbow Disposal costs of $11 .37 per month plus AB 939 costs of $0.15 per month and $ 0.48 per month of City costs. This will cover 26% of City costs currently being subsidized with general taxpayer funds (excluding street infrastructure costs) . In future years, this subsidy can be ._;reduced by incrementally increasing the monthly rate to cover all costs except street infrastructure costs. If implemented over a 4 year timeframe the increases in monthly rates would occur as follows: TIMETABLE - REDUCTION OF GENERAL FUND SUBSIDY OF REFUSE COLLECTION COSTS Fiscal Monthly Rate City General Fund Year Increase Subsidy* 1992/93 $ 0.48 $ 1 .37 1993/94 0.50 0.87 1994/95 0.50 0.37 1995/96 0.37 0.00 Four Year Total : Rate Increase *Exclusive of Street Infrastructure Costs ROBERT J. RANZ Deputy Ci y Administrator RJF:skd -3- WPADSERT:907 RESIN 4 TIAL REFUSE RATE FOR FISCAL YEAP 1993/94 Adoption of the proposed rate will ensure the integrity of the refuse fund and recover a portion of the General Fund subsidy to refuse collection services. The new rate of $12.72 per residence per month does not include any recycling charge. That cost will be presented for Council consideration at a later date once the City (represented by the new Refuse Rate Review Committee) and the contractor have established a charge for that service in accordance with the Franchise Agreement. FUNDING SOURCE: User fees collected from the public. ALTERNATIVE ACTION: Disapprove the proposal and instruct staff on what further action to take. ATTACHMENTS: 1 . Curbside Refuse Collection Service Rate Survey 2. Curbside Refuse Collection Service Costs 3. MSI Letter dated May 20, 1993 RJF:LFS:sd WPADSERT: 1448 ATTACHMENT 3 9CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Michael T. Uberuaga, City Administrator FROM: Robert J. Franz, Deputy City Administrator SUBJECT: Public Hearing — Revisions to Comprehensive Fee Schedule DATE: MAY 26, 1993 STATEMENT OF ISSUE: Fees, permits and fines are reviewed annually to ensure that they are appropriate. There is a need to revise selected fees within the City' s Comprehensive Fee Schedule for FY 1992/93 in order to implement Phase II of the Management Services Institute (MSI) System. ANALYSIS: The fees recommended for implementation/increase are derived from the MSI Cost Control System report completed in August, 1991 . As you know, this study identified potential new revenue of $30,571 ,544 if the MSI System were fully implemented. Several presentations of the MSI System have been made since August of 1991 to the City Council , the Budget Review Task Force and numerous community groups. This public hearing is for the purpose of receiving formal input on the proposed implementation of Phase II fee increases which would result in annual new revenue of $640,878 from new fees and increases to existing fees. Although the Phase II recommendations are a minor part and small step towards the full implementation of the MSI System, the additional annual revenue of $640,878 is a significant new source of revenue that is needed in the current budgetary situation to balance the General Fund budget. Hopefully, when public hearings on future implementation phases are held, the new revenue generated from such phases will not be needed for balancing the budget. Under this more desirable situation, the following alternative uses of new revenues can be considered: Restore Expenditure Reductions Infrastructure Maintenance Reduce Taxes Capital Improvement Projects Increased Services to the Public Although the above potential uses of new revenues are not presented in any particular_ priority order, it is significant that the listing .does not include "balance the General Fund budget" which is the primary use for which the Phase I and Phase II revenues were used. The- MSI _Study documented that the City is spending over $30 million more for fee related services than the PUBLIC HEA^?NG — REVISION TO COMPREHENSIVE FEE SCHEDULE amount of fees or revenues that are being collected. Although there is probably no City that fully charges users for all of the costs of services, it is not unrealistic to think that a City the size of Huntington Beach could reduce tax subsidies of these services by $10 million or more. Staff believes this amount of potential new revenue could be realized and thereby reduce the general taxpayer subsidy of special services such as hazardous material cleanup, plan check services, false alarm , responses, drunk driver arrest procedures, zone change reviews, and many other services provided to specific users of services. To reiterate, Phase I and Phase II of the implementation of the MSI System will provide non—tax revenue to cover existing costs for these services. Without such fee increases, the general taxpayer would continue to subsidize these services and additional expenditure reductions in general tax supported programs would be required in order to balance the 1993/94 fiscal year budget. ADDITIONAL BACKGROUND: Since 1982/83, staff has submitted, annually to the City Council , recommendations for revisions to City—wide fees, permits and fines. Each year, as a result of the City Council approving general fee increases, the General Fund has received additional revenue of between $150,000 and $300,000. In addition, from time to time, single issue fees have been approved by the City Council such as the community enrichment library fee and the planning permit processing fee. The incremental effect of these increases means that the City is now receiving (1992/93) approximately $3 million more each year than before the annual City—wide review was instituted. This process has helped keep pace with rising City costs for manpower and expenses related to the provision of services for which these fees are charged. The MSI Study has provided a comprehensive documentation of the full costs of these services. FUNDING SOURCE: Not applicable. ALTERNATIVE ACTIONS: 1 . Do not approve fee increases. 2. Approve only selected fee increases. ATTACHMENTS: 1 . Summary charts 2. Summary listing of Phase I (MSI) new and increased fees. RJF:pdc —2— WPADSERT: 1461 Attachment A CITY OF HUNTINGTON BEACH SCHEDULE 7 OVERHEAD RATES FISCAL YEAR 1990-1991 BUDGET OVERHEAD ADJUSTED COSTING TOTAL LESS OVERHEAD DEPARTMENT GENERAL BUDGET ADJSTMNTS BASE OVERHEAD BASE AMOUNT RATE RATE (1) (2) (3) (4) (5) (6) (7) (8) GENERAL GOVERNMENT $13,730,493 $760,500 $14,490,993 $8,829,773 $5,661,220 $8,829,773 7.5% DEPARTMENTS: Community Development $4,155,695 $4,427 $4,160,122 $301,301 $3,858,821 $301,301 7.8% Fire Department $17,599,996 $13,697 $17,613,693 $674,800 $16,938,893 $674,800 4.0% Police Department $33,450,258 $40,351 $33,490,609 $2,341,127 $31,149,482 $2,341,127 7.5% Community Services $8,396,332 $20,897 $8,417,229 $630,225 $7,787,004 $630,225 8.1% Library $4,013,165 $3,416 $4,016,581 $443,764 $3,572,817 $443,764 12.4% Public Works: Engineering/Admin $18,730,825 $7,835 $18,738,660 $366,557 $18,372,103 $366,557 2.0% Maintenance $10,917,039 $17,584 $10,934,623 $911,371 $10,023,252 $911,371 9.1% Park/Tree Maint. $5,236,755 $2,783 $5,239,538 $332,249 $4,907,289 $332,249 6.8% Water $14,012,958 $16,542 $14,029,500 $1,096,690 $12,932,810 $1,096,690 8.5% Redevelopment $3,112,460 $740 $3,113,200 $333,826 $2,779,374 $333,826 12.0% $133,355,976 $888,772 $134,244,748 $16,261,683 $117,983,065 $16,261,683 --------- ---------- --------- ---------- ----------- --------- ---------- --------- ---------- ----------- Budget Adjustments $45,609,039 -------- Combined General&Departmental Rate: 13.8% Total Budget $178,965,015 ---------------------- ---------------------- NOTES TO SCHEDULE: "BUDGET ADJUSTMENTS"--deductions for capital outlay,contingency appropriations, appropriations estimated to be unspent,transfers,and depreciation &debt service not included in the overhead base. "COSTING ADJUSTMENTS"--additions for costs related to fixed assets in overhead. MSI PHASE 11 RECOMMENDED FEES CURRENT FULL RECOMMENDED 93/94 94/95 FEE PER COST FEE ADDITIONAL ADDITIONAL MSI# UNIT PER UNIT PER UNIT REVENUE REVENUE FIRE 113 Fire Code Enforcement Insp. 0 248 See Attached 85,000 85,000 114 State Mandated Inspections 50 202 Various 9,700 9,700 Total Fire 94,700 94,700 POLICE 98 Police Accident Report 18 60 See Attached 76,000 76,000 Total Police 76,000 76.000 PUBLIC WORKS 180 Water Quality Testing 0 122 125 12,500 12,500 125 Tree/Shurb Overhang Abatement 2 94 95 5,673 5,673 56 Street Vacating Processing 300 2,416 2,400 4,200 4,200 181 Same Day Turn-On Service 15 28 30 4,500 4,500 192 Street Tree Removal/Replace 71 125 125 2,268 2,268 123 Weed Abatement 157 499 499 27,400 27,400 Total Public Works 56,541 56,541 TREASURERS OFFICE 202 Returned Check Processing NSF 10 15 15 18,250 18,250 Total Treasurers Office 18,250 18,250 COMMUNITY SERVICES 133 Adult Sports 260 319 320 40,000 60,000 134 Youth Sports 19 56 25 11,400 11,400 135 Private Youth Ball Feld Usage 6 41 7 265 265 136 Private Adult Ball Feld Usage 13 12 15 1,281 1,281 137 Contract Recreation Classes 31 58 32 10,500 10,500 141 Tennis 25 40 28 3,400 3,400 142 Tennis Court Rental 2 9 3 891 891 144 Swimming Lessons 18 32 22 4,800 4,800 Total Community Services 72,537 92,537 133 Adult Sports Softball fee increase of$40.00 effective September, 1993 and$20.00 effective September, 1994.These fee increases will generate$40,000 new revenue in fiscal year 1993-94 and$20,000 in fiscal year 1994-95. 180 Water Quality Testing Additonal revenue will be received in the Water Fund 181 Same Day Turn-on Service Additonal revenue will be received in the Water Fund i MSI PHASE 11 RECOMMENDED FEES CURRENT FULL RECOMMENDED 93/94 94/95 FEE PER COST FEE ADDITIONAL ADDITIONAL MSI# UNIT PER UNIT PER UNIT REVENUE REVENUE COMMUNITY DEVELOPMENT Building Division 44 Certificate of Occupancy - withoutadditionalinspection 125 40 - inspection required 125 125 (51,779) (62,135) 61 Building Plan Check 743 1,399 1,049 146,029 175,235 62 Plumbing Plan Check 152 210 157 653 784 63 Electrical Plan Check 107 304 228 33,925 40,710 64 Mechanical Plan Check 50 185 139 20,941 25,129 66 Building Inspection 128 163 133 20,500 24,640 67 Plumbing Inspection 55 78 58 5,158 6,189 68 Electrical Inspection 83 130 97 31,003 37,204 69 Mechancial Inspection 41 85 64 35,592 42,710 75 Swimming Pool Plan Check/Inspectioi 233 346 260 2,745 3,294 76 Plan Chk/Insp Misc Service Inspection 40 56 833 1,000 Inspection/Overtime 60 68 Plan Check 50 65 Plan Check/Overtime 75 80 Total Building Division 245,600 294.760 Planning Division 5 Tentative Parcel Map 500 780 585 708 850 7 Tentative Tract Map Review 1,200 2,000 1,500+ 11.25/lot 1,500 1,800 8 Use Permit 300 318 320 883 1,060 9 Lot Line Adjustment 250 426 320 58 70 11 Site Plan Am- ZA 150 363 270 200 240 13 Coastal Development Permit 150 930 700 5,458 6,550 CDP-Single Family Residence 300 15 Administrative Review 300 420 315 175 210 16 Conditional Use Permit 1,200 3,170 2,375 6,854 8,225 17 Special Permit Review 150 360 270 2,100 2,520 18 Conditional Use Permit-Use Only 500 2,250 1,700 15,000 18,000 19 Conditional Exception - PC 500 1,150 860 2,400 2,880 20 Conditional Exception -ZA 250 340 255 125 150 21 Category Exclusion Letter 25 73 50 21 25 22 Temporary Use- Profit 125 220 165 533 640 23 Temporary Outdoor Event 125 276 165 333 400 26 General Plan Amendment 5,000 10,052 7,875 2,396 2,875 27 General Plan Conformance 250 625 465 1,433 1,720 28 Code Amendment 2,500 5,242 3,443 5,833 7,000 29 Zoning Letter-Standard 25 135 25 155 185 - Research(1 hr) 100 - Research(>1 hr) 135 30 Zone Change Review 2,500 5,640 4,250 2,917 3,500 31 Environmental Assessment 500 1,160 870 10,792 12,950 33 EIR Preparation 2,500 5,944 2,900 333 400 35 Temporary Sign Review 25 105 100 6,188 7,425 36 Limited Sign Review 100 220 165 542 650 37 Planned Sign Review-Multiple 250 780 585 1,629 1,955 Planned Sign Review-Single 250 390 390 38 Special Sign Permit 450 1,085 814 2,433 2,920 39 Appeal to PC- Single Family 200 90 200 2,250 2,700 Appeal to PC- Others 200 878 650 46 Entitlement Ext.Review- PC 125 260 200 375 450 47 C C&R's Review 50 525 400 1,750 2,100 57 Certification of Compliance 50 139 105 46 55 90 Code Enforcement Re-inspection 35 50 50 938 1,125 * Continuance Request(PC) 50 270 200 875 1,050 * Animal Permit 10 25 20 17 20 Total Planning Division 77,250 92,700 Total Community Development 322,850 387.460 ' Not included as part of MSI study Grand Total 640,878 725,488 2 STATE OF CAUFORNIA County of Orange I am a Citizen of the United States and a resident of the County aforesaid; I am over the - age of eighteen years, and not a party to or PUBLIC NOTICE j NOTICE OF interested in the below entitled matter. I am a PUBLIC HEARING CITY principal clerk of the HUNTINGTON BEACH HUNTING ON BEACH s. ' FEE FOR SOLID INDEPENDENT, a newspaper of general ;:WASTE PROCESSING AND RECYCLING circulation, printed and published in the City of Notice is hereby given. that 'a public hearing will. Huntington Beach, County of Orange, State of beheld by the City Council: of the City of Huntington Carifomia, and that attached Notice is a true and Beach, in the Council Chambers of the Civic Cen- c omplete copy as was printed and published in ter, Huntington Beach, at the hour of 7:00 P.M.,or as the Huntington Beach and Fountain Valley 'soon thereafter as possible on Monday, the 21 st of issues of said newspaper to wit the issue(s) of: June, 1993,for the purpose of considering the estab- lishment of a fee for solid waste processing and recy- cling. It is proposed that the fee be set at ap- proximately $3.00 per resi- dential unit of service per month to compensate the contractor for the operation of a solid waste processing facility. The exact amount of.the increase will be de- !ermined prior to the hear- ing:A copy of the proposal June 10, 17, 1993 is,on file in the Office of the City Clerk. 'All Citizens are invited to attend and provide the City Council with written and oral comments and ask questions concerning the proposed fee for solid waste processing and recy- cling. Written communica- tions to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to ac commodate persons of 'handicapped status in the I declare under penalty of perjury, that the admission or access to, or treatment or employment for an is true and correct in;city programs n actor eg g ties:The City of Huntington Beach is an equal op- portunity employer. June 17 199,�„ DATED:6/9/93 Executed on ',City of Huntington at Costa esa, Califomia. Beach, Connie Brockway, City Clerk 2000 Main Street, Huntington Beach, CA _ - 92648 Telephone: Signature 536-5227. Published Newport' Beach-Costa Mesa Daily Pilot June 10,17, 1993. 0616341 PROOF OF PUBLICATION -=::)j v•qc) ' REQUEST FOR CITY COUNCIL ACTI Date September 3, 1991 Submitted to: Honorable Mayor and City Council APPROVED BY CITY COUNCIL Submitted by: Michael T. Uberuaga, City Administrator ` Prepared by: V"Louis F. Sandoval, Director of Public Works Jov� Subject: COUNTY LANDFILL GATE FEE LIEN SYSTEM c y c �xx Consistent with Council Policy? [)] Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source, Alternative Actions,Attachments: STATEMENT OF ISSUE: The County of Orange Integrated Waste Management Department (IWMD) is seeking City support to insure the payment of landfill gate fees by local refuse haulers. RECOMMENDATION: Adopt the attached resolution granting the IWMD the right to lien funds due Rainbow Disposal for residential refuse collection should the hauler fail to pay gate fees on refuse collected in the City of Huntington Beach. ANALYSIS: The County of Orange IWMD is seeking to guarantee the payment of gate fees for refuse deposited at county landfills by obtaining the power to lien the service fees due a trash hauler should the hauler fail to make the required payments in a timely manner. In the past this end was achieved by requiring the haulers to post bonds. But the high cost of such bonds has prompted the agency to offer to accept a continuing lien as an alternative, and Rainbow Disposal has requested us to adopt this new system. FUNDING SOURCE: None. No funds necessary. ALTERNATIVE ACTION: Deny the recommendations. ATTACHMENTS: Resolution MTU:LFS:JS:dw 3029g/9 P10 5/85 RESOLUTION NO. 6319 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING A LIEN TO BE PLACED BY THE COUNTY OF ORANGE AGAINST PAYMENTS DUE TO RAINBOW DISPOSAL BY THE CITY OF HUNTINGTON BEACH. WHEREAS the County of Orange Integrated Waste Management Department has requested that the City of Huntington Beach agree to accept a lien against the moneys due from the City to Rainbow Transfer/Recycling, Inc. , and whereas Rainbow Transfer/Recycling, Inc. is agreeable to such liens; and The City collects the trash fees to be paid to Rainbow Transfer/Recycling, Inc. , and the County of Orange requires a guarantee of the gate fees owed by Rainbow Transfer/Recycling, Inc. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Huntington Beach hereby authorizes the acceptance of a continuing lien in the amount of Four Hundred Seventy-Five Thousand Dollars ($475, 000) . This lien will act as a guarantee of the moneys owed to the County of Orange by Rainbow Transfer/Recycling, Inc. to the County for gate fees . This guarantee may be rescinded by the City upon the giving of 30 days notice to the County of Orange and Rainbow Transfer/Recycling, the City Treasurer is authorized to execute any and all documents required to implement this guarantee. f 1 The City Attorney is authorized to affirm to the County that this guarantee is a legal obligation of the City. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 3rd day of September 1991. Mayor ATTE APPROVED AS TO ORM: City Clerk ��9_�/ City Att rney� ME AND APPROVED: ;IN T� IATD AN ROV I�lM�City Administrator Director f Public Works 2 Res. No. 6319 STATE OF CALIFORNIA COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 3rd day of September , 19 91 , by the following vote: AYES: Councilmembers: MacAllister, Winchell, Silva, Green, Kelly, Robitaille, Moulton-Patterson NOES: Councilmembers: None ABSENT: Councilmembers: None y Clerk ancl ex-otticioglerk of the City Council of the City of Huntington Beach, California .4nJ& CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To MICHAEL T. UBERUAGA From ROBERT J. FRANZ City Administrator Deputy City Admin is�,tra ' Subject RESIDENTIAL REFUSE Date MAY 23, 1991 COLLECTION FEE INCREASE Statement of Issue: Due to cost increases i'n providing this service, it is necessary to increase the residential refuse fee. r Analysis: Currently there are approximately 43,500 residences receiving curbside refuse collection service for $9.85 per month for each residence. The amount the City must pay to Rainbow Disposal per resident per month for ` this service.will increase to $10.95 effective July 1 , 19.91 . This cost increase is the result of the provision in the long term agreement with Rainbow Disposal that provides for annual rate increases calculated by an t} established formula using various changes in operating expenses from April to April of each year. Payments to Rainbow increase each July l under the contract formula. For 1991/92, the largest portion of the cost- increase in the formula is the County determined gate fee. This fee will increase from $17.75 per ton to $22.75 per ton on July 1., a 28% increase, and an additional $0.44 per month per residence under the Rainbow Disposal contract. A complete breakdown of the cost increase in attached. The requested rate increase does not include any City indirect costs such as contract administration, billing, or accounting functions. As you know, staff is recommending that the 1991/92 Budget include a new Enterprise Fund to account for all refuse collection .costs and revenues. Once this fund is established and the MSI Fee Study is completed; we will prepare an analysis of all city administrative costs for the refuse collection program. We will then be in a position to present to the City Council the option of increasing refuse rates to cover all refuse collection related costs. Alternative Actions 1 . Increase the fee to cover some of the City costs in addition to the r contract amount due Rainbow Disposal . 2. Adopt a fee less than the .contract amount of payment to Rainbow }r Disposal . This would require a General Fund subsidy of refuse collection costs, a further reduction of other General Fund operations or additional use of General Fund reserves. k Attachments: Refuse collection cost chart. i . ` WPADSERT;330 r REFUSE C '-ECTION , COST FISCAL YEAR 1991/92 r Monthly Monthly Fiscal County Gate Fee Residential Residential Annualized Year Date (Per Ton) Increase Rate Costs Reason for Increase 1988/89 July '88 $ 6:00 $ 0.27 $ 6.58 $3,400,000 County Gate Fee Increase Oct. 188 6.00 0.16 6.74 3,500,000 Annual Rainbow Contract Increase Jan. '.89 9.50 0.84' 7.58 3,910,000 County Gate Fee Increase 1989/90 July '89 13.75 0.87 8.45 4,400,000 County Gate Fee Increase 1990/91 July '90 17.75 1.40 9.85 5,141,700 Rainbow Contract Increase (Includes Gate Fee Increase) 1991/92 July '91 22.75 1.10 10.95 5,715,900 Rainbow Contract Increase (Includes Gate Fee Increase) ANALYSIS OF 1991/92 RAINBOW DISPOSAL CONTRACT COST INCREASE April July 1, 1991 Rainbow Contract to April Contract Contract Cost Increase Annualized Cost Formula Item Increase Factor Increase (%) Per Month Increase Consumer Price Index = 4.8% x .76 = 3.65% $ 0.36 $ 187,900 County Gate Fee = 28.2% x .16 = 4.51% 0.44 229,680 Diesel Fuel = 38.0% x .08 = 3.04% 0.30 156,600 Total Cost Increase 11.20% 1.10 $ 574,180 Current Cost 9.85 5,141,700 Total Monthly Cost 5248 j 0/0 i/r, pp tu REQUEST FOR CITY COUNCIL ACTION Date June 18, 1990 Submitted to: Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Administrator Prepared by: Louis F. Sandoval, Director of Public Works • APPROVED BY CITY CUUNC�. Subject: DUMPSTER SERVICE RATES _ lg CITY CL RI{ Consistent with Council Policy? ] Yes [ ] New Policy or Exceptio Statement of Issue, Recommendation,Analysis, Funding Source, Alternative Actions,Attachments: STATEMENT OF ISSUE: Our contract with Rainbow Disposal contains an annual rate adjustment for commercial (i.e. "dumpster") services. RECOMMENDATION: Approve the attached rate schedule to be effective July 1, 1990. ANALYSIS: On February 5, 1990, the City Council entered into an exclusive contract with Rainbow Disposal for the provision of solid waste services within the City of Huntington Beach. This agreement included a formula for adjusting "commercial' (dumpster) services on an annual basis. Pursuant to the contract, the accounting firm of Mallory, Mc Ginnis and Zink has prepared a new commercial refuse service rate schedule to be effective July 1, 1990. The Public Works staff has reviewed this proposal and found it to be correct. FUNDING SOURCE: None. No funds necessary. =' ALTERNATIVE ACTION: M m Deny the request and enter into litigation with the contractor. v ATTACHMENTS: .. r o Proposed rate schedule. Mallory, Mc Ginnis & Zink data sheet. MTU:LFS:JS:dw 2446g/8 PI O 5/85 a EFFECTIVE JULY 1, 1990 Size of Number of Monthly Container Pick-ups per Week Service Rate 1 Cu. Yard Dumpster 1 $37 . 77 2 $59 . 26 3 $74 . 23 4 . $81. 61 5 $95 . 51. 6 $110. 48 2 Cu. Yard Dumpster 1 $61.43 2 $88 . 13 3 $110. 48 4 $129 . 58 5 $159 . 54 6 $183 . 20 3 Cu. Yard Dumpster 1 $78 . 59 2 $118 . 37 3 $159 . 52 4 $187 . 37 5 $239 . 91 6 $280. 51 Add a $7 . 50 charge per dumpster per pick-up for push-outs over 30 feet, and a $5. 00 charge per month per dumpster in an enclosure. 1 RAINBOW DISPOSAL COMPANY, INC. COMMERICAL RATES AS OF APRIL 30, 1990 DUMP DIESAL YEAR CPI' (76%) FEES (16%) FUEL (8-%) ------------ ------------ ------------ ------------- 1983 5.50 $13.75 0.631 1990 5.50 17.75 0.800 PERCENTAGE CALCULATION: YEAR 76& + 16% + 8% - loot ------- ---- ------------ ------------ ---•------- 1994 4.19 4.65 (0.30} 8.53 1989 PERCENTAGE 1990 DOLLAR ACTUAL INCREASE PROJECTED INCREASE I YARD 1 x WK 34.80 8.53 37.77 2.97 2 x WK 54.60 8.53 59.26 . 4.66 3 x WK 68.40 8.53 74.23 5.63 4 X WK 75.20 -8.53 81.61 6.41 5 x WK 88.00 8.53 95.51 7.51 6 x WK 101.80 8.33 110.48 8_68 2 YARD 1 x WK 56.60 8.53 61.43 4.23 2 X WK 81.20 8.53 88.13 6.93 3 x NK 101.80 8.53 110.48 8.68 4 .x WK 119:40 8.53 129.58 10.18 5 x WK 147.00 8.53 159. 54 12.54 6 x WK 168.80 8.53 183 .20 14.40 3 YARD 1 x WK 72.41 8.53 78..59 6. 18 2 X WK 109.07 8.53 lla.37 9.30 3 x WK 146.98 8.53 159.52 12.54 4 x WK 172.64 8.53 .197.37 14.73 5 x WK 221.05 8.53 239.91 18.86 6 x WK 2S8.46 8.53 280.51 2.2.05 PREPARED BY: MALLORY, Mr-GINNIS Q ZINK i I I I REQUEST FOR CITY COUNCIL ACTION Date June 18, 1990 Submitted to: Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Administrator Prepared by: Louis F. Sandoval, Director of Public Works `:PPROVED BY CIa Subject: RESIDENTIAL REFUSE RATE - �� 0*1 CI Consistent with Council Policy? [ XYes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions, Attachments: STATEMENT OF ISSUE: Our contract with Rainbow Disposal contains an annual rate adjustment for residential service. RECOMMENDATION: Approve a monthly service rate of $9.85 to be effective July 1, 1990. ANALYSIS: On February 5, 1990, the City Council entered into an exclusive contract with Rainbow Disposal for the provision of solid waste services within the City of Huntington Beach. This agreement included a formula for adjusting the monthly residential service rate on an annual basis. According to Section 11.A of the agreement, a monthly residential service rate of $9.52 would go into effect on July 1, 1990, unless the landfill tipping fee increased by more than $1.00 per ton during the fiscal year. We have now been advised by the County General Services Agency that,the landfill fee will be raised by $4.00 per ton (from $13.75 to $17.75 per ton) on July 1, 1990. The mathematics of the formula indicate that an increase of $.33 per unit a month should be added to the base of $9.52. This would increase the monthly per unit fee paid by the City to the contractor to $9.85 on that date. The reason for such a large increase is because the County has chosen to turn it's waste management program into an "enterprise" fund. It will now be funded by direct service charges and no longer be subsidized by property tax dollars. FUNDING SOURCE: General Funds for this purpose are located in the 1990-91 budget request as part of account number E-AA-PW-420-3-98-00. The actual cost of this service will depend on the number of new residential dwelling units occupied during the fiscal year. ALTERNATIVE ACTION: Deny the request and enter into litigation with the contractor. ATTACHMENTS: Section I LA of the refuse collection agreement. � PIO 5/85 T'h no later than fifteen (15) days after the end of the month in, which service was rendered . 11 . COMPENSATION - RESIDENTIAL A. CITY shall pay to CONTRACTOR for services provided under the terms of this AGREEMENT, the sum of $8 . 45 per month for each-UNIT OF SERVICE rendered in CITY from the period beginning February 1, 1990 , until June 30 , 1990; and the sum of $9 . 52 per month for same from July 1, 1990 , until June 30 , 1991 . However, should the landfill tipping fee increase more than $1 . 00 per ton during the one year period after June 30 , 1990 , then the "tipping fee" portion of the formula described below shall be applied to the amount in excess of $1 . 00 per ton . B . Changes in compensation for each subsequent year will be based on the formula provided below and shall take effect on July 1st of each succeeding year beginning on July 1, 1991 . A change in compensation will be determined by the three factors in the following formula : 1 . The percentage of increase in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area from April to April of the preceding twelve (12) months . This factor shall constitute seventy-six percent (76%) of a rate adjustment . 2 . The County of Orange landfill tipping fees . This factor shall constitute sixteen percent ( 16%) of a rate adjustment , and be based upon the tipping fee adopted by said County for the subsequent fiscal year . 3 . The average per gallon price of diesel fuel as paid by CONTRACTOR during the April to April time frame -11- c , REFUSE COLLECTION AND DISPOSAL SERVICES FRANCHISE AGREEMENT BY AND BETWEEN THE e-'ITY OF HUNTINGTON BEACH AND THE RAINBOW DISPOSAL AND RAINBOW TRANSFER AND RECYCLING COMPANIES THIS FRANCHISE AGREEMENT is made and entered into this day of 1990, by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "CITY, " and the RAINBOW DISPOSAL COMPANY, INC. , joined by RAINBOW TRANSFER AND RECYCLING, INC. , both California corporations, hereinafter referred to collectively as "CONTRACTOR. " WHEREAS, CITY and CONTRACTOR have previously entered into a franchise agreement, dated July 28, 1980, wherein CONTRACTOR was awarded the right to provide refuse collection and disposal services for CITY; and CITY and CONTRACTOR are desirous of adopting a new franchise agreement; NOW, THEREFORE, the parties hereto do hereby agree as fcllows : 1. DEFINITIONS A. "AGREEMENT" shall mean this franchise agreement, entered into between CITY and CONTRACTOR. B. "CITY COUNCIL" shall mean the City Council of the City of Huntington Beach, California . C. "DIRECTOR" shall mean the Director of Public Work,- of CITY or his designated representatives . D. "REFUSE" means garbage and solid waste. E. "RESIDENTIAL UNIT OF SERVICE" shall mean each single-family residence and each dwelling unit within a duplex, a triplex, or a fourplex receiving noncommercial refuse collection service. -1- F. "BASIC LEVEL OF SERVICE" shall mean the amount of refuse generated by an average family within a UNIT OF SERVICE. G. "COMMERCIAL SERVICE" shall mean collection service pursuant to an agreement between CONTRACTOR and his CUSTOMER by which dumpsters or drop-off-bodies are rented to CUSTOMER. H. "CUSTOMER" shall mean a user of CONTRACTOR' S services . 2 . LEGAL COMPLIANCE A. This AGREEMENT shall be governed by the laws and regulations of the State of California, the County of Orange, and CITY both as to interpretation and performance. Specific reference is made to Chapter 8 . 20 of the Huntington Beach Municipal Code as it now exists or may be amended. B. If any provision of this AGREEMENT shall be declared illegal, void or unenforceable, the other provisions shall not be affected but shall remain in full force and effect . 3 . TERM; ANNUAL EXTENSION OF TERM A. The term of this AGREEMENT is fifteen (15) years, effective February 1, 1990 . B. Subject to the DIRECTOR' S annual evaluation, as provided in Section 3(C) herein, the term of this AGREEMENT shall be annually extended one (1) year, on the lst of February of each succeeding year, commencing February 1, 1991. Such annual extension may also be terminated by either party in their sole discretion, without cause, by notification in writing. Such notice will not terminate the entire AGREEMENT. Such notice will only terminate the annual one-year extension of this AGREEMENT, and the AGREEMENT shall remain in effect for the balance of the fifteen-year term outstanding . -2- 1 rl r(• , r rr r r • r r 1 r r C. Sixty days prior to the date for each annual one-year extension described in paragraph 3 (B) herein, DIRECTOR shall perform an evaluation of the services provided by CONTRACTOR. Said evaluation may consider the kind and number of complaints made against CONTRACTOR by his CUSTOMERS and the condition of CONTRACTOR' S facility and equipment . If deficiencies are discovered, DIRECTOR will provide CONTRACTOR with a written list of same and require corrective action prior to the effective date of the extension. Until the deficiencies are corrected to the satisfaction of DIRECTOR, an annual extension of this AGREEMENT may be held in abeyance. D. CITY reserves the right to cancel this AGREEMENT upon thirty (30) days written notice to CONTRACTOR, in the event that CONTRACTOR shall be in default in any terms, covenants or conditions set forth in this AGREEMENT, or in the event that CONTRACTOR shall fail to comply and abide by all of the requirements and provisions of Chapter 8 .20 of the Huntington Beach Municipal Code, as the same now exists, or may hereafter be amended. E. Any termination of this AGREEMENT for cause, or because of expiration of the term, or otherwise, shall constitute a discontinuation of the right of the CONTRACTOR to provide refuse disposal services within CITY. 4 . EXCLUSIVENESS OF CONTRACT A. CONTRACTOR shall have- the exclusive duty, right and privilege to collect, remove and retain all REFUSE; residential, commercial, or industrial, including construction, originating within CITY limits as they may now or hereinafter exist. B. This AGREEMENT shall not prohibit collectors of REFUSE originating outside the city from hauling said refuse over -3- city streets, provided such collectors comply with any governing laws or ordinances . 5 . SUPERVISION OF AGREEMENT A. Performance of each of the provisions of this AGREEMENT shall be under the supervision of DIRECTOR. CONTRACTOR shall furnish DIRECTOR every reasonable opportunity of ascertaining whether or not the work herein assigned is performed in accordance with the requirements of this AGREEMENT. B. CONTRACTOR shall designate a person to serve as agent and liaison between CONTRACTOR and CITY, and shall maintain a toll free telephone for communication with CITY' s staff . C. DIRECTOR may inspect CONTRACTOR' S operations and equipment at any reasonable time. CONTRACTOR shall admit DIRECTOR to make such inspections at any reasonable time and place. 6 . SERVICE STANDARDS; COLLECTIONS A. During the term hereof, CONTRACTOR shall provide the BASIC LEVEL OF SERVICE to each RESIDENTIAL UNIT OF SERVICE within CITY. This shall include the normal amount of plant clippings and trimmings generated by a RESIDENTIAL UNIT OF SERVICE. B. CONTRACTOR shall be responsible for picking up plant prunings and trimmings that are securely bundled in lengths not in excess of four (4) feet and that weigh no more than forty (40) pounds . C. CONTRACTOR agrees that upon removing REFUSE from receptacles, said receptacles will be replaced, including the lids alongside thereof; and that no REFUSE will be allowed to spill while handling same, and proper care will be used in the handling of said receptacles . -4- D. CONTRACTOR shall, at all times during the term of this AGREEMENT, keep and maintain in good operating order, and in good appearance, sufficient trucks and other equipment to properly and adequately provide the services described herein. E. CONTRACTOR shall maintain a local telephone to which all service complaints from CUSTOMERS may be directed. The telephone shall be staffed from 8 : 00 a .m. until 5 : 00 p.m. Monday through Friday and from 8 : 00 a.m. until noon Saturday. F. Each quarter, upon request, CONTRACTOR shall provide DIRECTOR a written summary report of all complaints received and the action taken in response to said complaints . G. CONTRACTOR shall make at least one (1) weekly collection at all places of residence and commercial and industrial establishments qualifying for the minimum can collection service on a schedule approved by CITY. Extended commercial and industrial service accounts shall be collected at a frequency for which they shall contract, provided it is adequate in the opinion of DIRECTOR to maintain the premises so served in a healthful and unlittered condition. H. CONTRACTOR shall supply and unload dumpsters and drop-off-bodies at CITY owned or operated facilities as requested by Director, and shall empty the 40-gallon trash cans in the downtown commercial area at a frequency of six days a week in the summer and twice a week at other times, at no cost to CITY. CONTRACTOR shall pay for the deposit of CITY generated refuse, including street sweepings, grass clippings and tree trimmings, at Rainbow Transfer. However, the total dollar value -5- of all such services provided by CONTRACTOR to CITY shall not exceed $500, 000 during the first year of this AGREEMENT. This figure shall be adjusted in subsequent years by an amount equal to the CONTRACTOR' S annual rate increase, as shown in sections 11 and 12 herein. I . Upon the request of a homeowner, CONTRACTOR shall make two special collections each year of a large household item, such as a sofa or a water heater, at no cost to the homeowner. J. The hours of collection shall be 6 : 30 A.M. to 6 :30 P.M. except on advance specific waiver of DIRECTOR. K. Should CONTRACTOR fail to collect and dispose of REFUSE set out or placed for collection as herein provided, or at the times herein required, CITY may, after notification of CONTRACTOR and within a reasonable time not to exceed twenty-four (24) hours, collect and dispose of said REFUSE at CONTRACTOR' S sole cost and expense. L. Collection of REFUSE shall not be required on Sundays or on the following legal holidays : New Year ' s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day; excepting in cases of emergency and upon the express direction of DIRECTOR. Whenever a regular collection day falls on such a holiday, then collection shall be made on the day following. Should a holiday fall on a Sunday, then the following Monday shall be observed as the holiday. Any additional holidays requested by CONTRACTOR shall be submitted in writing to CITY for approval . M. All COMMERCIAL SERVICES containers shall be of a design and size sufficient to contain their contents, at all times, in such a manner as to promote the best possible housekeeping -6- conditions . All containers supplied by CONTRACTOR shall, at all times, be maintained in a well-kept appearance. CUSTOMERS shall be responsible for the cleanliness, sanitation and deodorizing of rental containers . N. CONTRACTOR shall not, nor shall it permit any agent, employee or subcontractor employed by it, to request, solicit, demand, or accept, either directly or indirectly, any compensation or gratuity for the collection of REFUSE as herein defined, except such compensation as may be herein provided to be paid by CITY. It is further provided, however, that CONTRACTOR may make available special storage and loading containers, provide additional collections not required by these specifications, or pick up REFUSE at points other than as required in these specifications, at the request of the person or business being served. CONTRACTOR may make a direct charge in each instance for such additional service under a written agreement which shall be subject to the approval of DIRECTOR, and at such rates as are reasonable, just and uniform for all persons or businesses being served. All charges for such services shall be collected by CONTRACTOR. 7 . RESIDENTIAL TOXIC WASTES Upon receipt of all required permits and insurance, CONTRACTOR agrees to provide a residential toxic waste transfer station at CONTRACTOR' S current site. Said station will be a regional facility and be made available free of charge to the residents of CITY, unless current funding sources do not materialize. In the event these funding sources are not available, CONTRACTOR may levy user fees to individual users as approved by CITY. In the event governmental regulations or operational costs -7- make it impractical to operate such a station, CONTRACTOR and CITY shall have the right to terminate operation of the facility by mutual agreement . 8 . RECYCLING PROGRAM CONTRACTOR shall provide a solid waste processing facility designed to specifically recycle residential and commercial waste. Said facility will be operational within thirty (30) months of the date of AGREEMENT and meet the standards legislated by the State of California in the Integrated Waste Management Act of 1989 (AB 939) as it now exists or may be hereafter amended. This time frame may be extended at the request of CONTRACTOR should construction of said facility be delayed by natural disaster, new legislation, or other unforeseen event . Full development of the system will be phased in over time, and CITY and CONTRACTOR agree that the costs of operation will be born by the users of the facility. CITY and CONTRACTOR also agree to meet prior to the commencement of operations in order to establish a charge for this service. 9 . LABOR RELATIONS A. CONTRACTOR shall, at all times during the term of this AGREEMENT, abide by all laws and regulations of the State of California regarding the employment of labor. B. In the event that there occurs any period in which CONTRACTOR fails to maintain required REFUSE collection and disposal services pursuant to this contract by reason of a strike by CONTRACTOR' S employees or similar labor dispute, CITY shall have the exclusive right of first refusal to rent and operate any or all trucks, trailers, tractors, bulldozers, other equipment and -8- facilities used by CONTRACTOR in the performance of the work specified in this AGREEMENT. Such rental shall be upon a reasonable basis until other arrangements can be made by CITY. In determining the rental amount to be paid CONTRACTOR, the parties shall take into consideration the cost, age, and condition of the equipment thus utilized so as to afford CONTRACTOR fair and just compensation for such use. All money due CONTRACTOR for such rental may at the option of CITY be applied to the reduction of any lien or encumbrance on the rented chattels . C. Pursuant to California Labor_ Code Section 1861, CONTRACTOR acknowledges awareness of Section 3700 et seq. of said code, which requires every employer to be insured against liability for workers ' compensation; CONTRACTOR covenants that it will comply with such provisions during the entire term of this AGREEMENT. CONTRACTOR shall maintain such Workers ' Compensation Insurance in an amount of not less than One Hundred Thousand Dollars ($100, 000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100, 000) bodily injury by disease, each employee, and Two Hundred Fifty Thousand Dollars $250, 000) bodily injury by disease, policy limit, at all times incident hereto, in forms and underwritten by insurance companies satisfactory to CITY. 10 . UNIT OF SERVICE COUNT A. An annual count of the UNITS OF SERVICE shall be performed by a member of CITY' s staff and a representative of CONTRACTOR. Said count shall be performed during the first quarter of each year of the term of this AGREEMENT. Said count shall include all single family, duplex, triplex, and fourplex residential units -9- that are provided noncommercial trash service. Groups of more than four (4) residential units are deemed to be nonresidential and will be charged in accordance with COMMERCIAL SERVICE provisions below. This annual residential count shall be the basis for determining the number of dwelling units for which CITY shall compensate CONTRACTOR. B. CONTRACTOR agrees to submit to DIRECTOR, on a monthly basis, a list of all residential units which have either: (1) contracted for COMMERCIAL SERVICE, or (2) discontinued COMMERCIAL SERVICE with CONTRACTOR. Such listing shall be kept confidential by CITY. C. DIRECTOR shall have added to CITY' s water file, under the heading "Trash, " a Code for all single family, duplex, triplex and fourplex units that are provided noncommercial trash service by CONTRACTOR and a Code for those units that are provided COMMERCIAL SERVICE by CONTRACTOR. D. DIRECTOR shall multiply the established rate per UNIT OF SERVICE by the total monthly count of all single family, duplex, triplex and fourplex units that are provided noncommercial trash service to arrive at the monthly payment to CONTRACTOR. It is recognized that the total number of UNIT' S OF SERVICE will vary from month to month. Therefore, the number of UNITS OF SERVICE in any month shall be determined as above. E. DIRECTOR is responsible for authorizing the Finance Department to make monthly payments to CONTRACTOR based upon the total monthly count of all single family, duplex, triplex and fourplex residential units that are provided noncommercial trash service. CITY shall compensate CONTRACTOR -10- no later than fifteen (15) days after the end of the month in which service was rendered. 11 . COMPENSATION - RESIDENTIAL A. CITY shall pay to CONTRACTOR for services provided under the terms of this AGREEMENT, the sum of $8 .45 per month for each UNIT OF SERVICE rendered in CITY from the period beginning February 1, 1990, until June 30, 1990; and the sum of $9 . 52 per month for same from July 1, 1990, until June 30, 1991. However, should the landfill tipping fee increase more than $1 . 00 per ton during the one year period after June 30, 1990, then the "tipping fee" portion of the formula described below shall be applied to the amount in excess of $1. 00 per ton. B. Changes in compensation for each subsequent year will be based on the formula provided below and shall take effect on July lst of each succeeding year beginning on July 1, 1991. A change in compensation will be determined by the three factors in the following formula: 1. The percentage of increase in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area from April to April of the preceding twelve (12) months . This factor shall constitute seventy-six percent (76%) of a rate adjustment . 2 . The County of Orange landfill tipping fees . This factor shall constitute sixteen percent (16%) of a rate adjustment, and be based upon the tipping fee adopted by said County for the subsequent fiscal year . 3 . The average per gallon price of diesel fuel as paid by CONTRACTOR during the April to April time frame -11- noted above. This factor shall constitute eight percent (8%) of a rate adjustment . An example of this formula is provided on the attached Exhibit B. No more than one negotiated rate change shall be made in any twelve (12) month period. However, either DIRECTOR or CONTRACTOR may propose modification of an established rate in order to assure the overall fairness of the rate structure to both CITY and CONTRACTOR. C. In the event CONTRACTOR becomes obligated in the performance of this AGREEMENT to pay any fees or charges not presently required, such as those imposed by toll roads, for the transit of REFUSE to landfills; or if CONTRACTOR is required to travel additional distances to an approved landfill site due to the closing of an existing facility; or if the County of Orange raises the landfill tipping fee more than once during a year, then the parties agree to negotiate in good faith for an adjustment in the existing monthly unit rate prior to the implementation of such charges . 12 . COMPENSATION - COMMERCIAL A. CONTRACTOR shall establish and publish a schedule of rates for all COMMERCIAL SERVICE accounts based on frequency of collection per week and size of container. Said schedule shall be shown as Exhibit A of this AGREEMENT and shall become effective on February 1, 1990 . B. CONTRACTOR shall be exclusively responsible for making contracts for COMMERCIAL SERVICE with CUSTOMER' S within CITY. All charges will be billed to and collected from each CUSTOMER by CONTRACTOR. -12- C. Beginning July 1, 1990, and continuing for the life of this AGREEMENT, changes in compensation for COMMERCIAL SERVICE for each subsequent year will be based on the formula provided below and shall take effect on July 1st of each succeeding year. A change in compensation will be determined by three factors in the following formula: 1. The percentage of increase in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index(CPI) or any relevant successor for the Orange County area from April to April of the preceding twelve (12) months . This factor shall constitute seventy-six percent (76%) of a rate adjustment . 2 . The County of Orange landfill tipping fees . This factor shall constitute sixteen percent (16%) of a rate adjustment, and be based upon the tipping fee adopted by said County for the subsequent fiscal year. 3 . The average per gallon price of diesel fuel as paid by CONTRACTOR during the April to April time frame noted above. This factor shall constitute eight percent (3%) of a rate adjustment . An example of this formula is provided on the attached Exhibit B. No more than one negotiated rate change shall be made in any twelve (12) month period. However, either DIRECTOR or CONTRACTOR may propose modification of an established rate in order to assure the overall fairness of the rate structure to both CITY and CONTRACTOR. 13 . COMMERCIAL SERVICE FRANCHISE FEE A. Beginning on July 1, 1991, CONTRACTOR shall pay CITY a franchise fee of one percent (1%) of his paid gross -13- receipts from COMMERCIAL SERVICE. Said fee shall increase to two percent (2%) of same on July 1, 1992, and to three percent (30-o) on July 1, 1993 . However, in all instances, the fee shall be added to the rate schedule only after the compensation formula has been applied. B. Said payment shall be made on a monthly basis and be received by CITY no later than fifteen (15) days after the end of each calendar month in which CONTRACTOR' S invoices were issued. The first payment due under this AGREEMENT, for receipts of July, 1991, shall be payable on September 15, 1991. Any late payments shall be assessed in accordance with Chapter 3 .48 of the Huntington Beach Municipal Code. 14 . TRANSFER STATION USER FEE A. Beginning on July 1, 1990, CONTRACTOR shall pay CITY a transfer station user fee of one and one quarter percent (1.25%) of all paid receipts for refuse deposited at the transfer station. B. Said payment shall be made on a monthly basis and be received by CITY no later than fifteen (15) days after the end of each calendar month in which CONTRACTOR' S invoices were issued. The first payment due under this AGREEMENT, for the paid receipts of July, 1990, shall be payable on September 15, 1990 . Any late payments shall be assessed in accordance with Chapter 3 .48 of the Huntington Beach Municipal Code. 15 . PERFORMANCE BOND CONTRACTOR shall, at all times, during the life of AGREEMENT keep on file with CITY a bond in the sum of Fifty Thousand and 00/100 Dollars ($50, 000 . 00) to the effect that -14- CONTRACTOR will faithfully perform this AGREEMENT. 16 . INSURANCE CONTRACTOR shall carry at all times incident hereto, on all operations to be performed hereunder, general liability insurance, including coverage for bodily injury and property damage. Said insurance shall also include automotive bodily injury and property damage liability insurance. All insurance shall be underwritten by insurance companies in forms satisfactory to CITY for all operations and all owned vehicles and non-owned vehicles . Said insurance shall name the CITY, its officers, agents and employees and all public agencies as determined by the CITY as Additional Insureds . CONTRACTOR shall subscribe for and maintain said insurance policies in full force and effect during the life of this AGREEMENT, in an amount of not less than One Million Dollars ($1, 000, 000) combined single limit coverage. If coverage is provided under a form which includes a designated general aggregate limit, such limit shall be no less than One Million Dollars ($1, 000, 000) . In the event of aggregate coverage, CONTRACTOR shall immediately notify CITY of any known depletion of limits . CONTRACTOR shall require its insurer to waive its subrogation rights against CITY and agrees to provide certificates evidencing the same. 17. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENT Prior to commencing performance of the work hereunder, CONTRACTOR shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by Sections 9 and -15- 16 herein; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be cancelled without thirty (30) days prior written notice to CITY. CONTRACTOR shall maintain the foregoing insurance coverages in force during the entire term of this AGREEMENT. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under Section 18 of this AGREEMENT. CITY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. CONTRACTOR shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of CONTRACTOR' S insurance policies, naming the CITY, its officers and employees as Additional Insureds shall be provided to the CITY upon demand. 18 . INDEMNIFICATION, DEFENSE, HOLD HARMLESS CONTRACTOR hereby agrees to protect, defend, indemnify and hold and save harmless CITY, its officers, and employees against any and all liability, claims, judgments, costs and demands, however caused, including those resulting from death or injury to CONTRACTOR' S employees and damage to CONTRACTOR' S property, arising directly or indirectly out of the performance of this AGREEMENT by CONTRACTOR, including those arising from the passive concurrent negligence of CITY, but save and except those which arise out of the active concurrent -16- negligence, sole negligence, or the sole willful misconduct of CITY. CONTRACTOR will conduct all defense at its sole cost and expense. CITY shall be reimbursed by CONTRACTOR for all costs or attorney' s fees incurred by CITY in enforcing this obligation. 19 . TRANSFER A. CONTRACTOR shall not sell, assign, or transfer this AGREEMENT or any interest therein, or permit same to be transferred by operation of law, without first obtaining the consent of CITY. Any such unauthorized transfer shall allow CITY, at its option, to terminate this AGREEMENT. B. Until the adoption of any ordinance to the contrary by CITY, CONTRACTOR may sell or otherwise dispose of refuse materials after the same have been collected. 20 . FINANCIAL RECORDS At the request of DIRECTOR, CONTRACTOR shall make his complete financial records available for examination by CITY or its designated agents . Such records shall be kept confidential . REST OF PAGE NOT USED -17- 21 . ENTIRETY The foregoing, and Exhibits "A" and "B" attached hereto, sets forth the entire AGREEMENT between the parties . IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed on the day, month and year first above written at Huntington Beach, California. RAINBOW DISPOSAL COMPANY, INC. , CITY OF HUNTINGTON BEACH a California corporation a California municipal cor at1on President Mayor cretary RAINBOW TRANSFER AND RECYCLING, INC. a California corporation President cretary ATTEST: APPROVED AS TO FORM: City Clerk t Attorney REVIEWED AND APPROVED: 'INITIATED A D APPROVED: City Administrator Directo of 'Public Works sg -18- EXHIBIT A DUMPSTER SERVICE RATE SCHEDULE Size of Number of Monthly Service Container Pick-Ups per Week Rate 1 Cu. Yard Dumpster 1 $ 34 . 80 2 54 . 60 3 68 .40 4 75 .20 5 88 .00 6 101. 80 2 Cu. Yard Dumpster 1 $ 56 . 60 2 81.20 3 101. 80 4 119 .40 5 147 . 00 6 168 . 80 3 Cu. Yard Dumpster 1 $ 72 .41 2 109 . 07 3 146 . 98 4 172 . 64 5 221. 05 6 258 .46 Add a $7. 50 charge per dumpster per pick-up for push-outs over 30 feet, and a $5 . 00 charge per month per dumpster in an enclosure. DROP-OFF-BODY SERVICE RATE SCHEDULE Container Size Service Time Service Rate 3 Cu. Yard Two (2) Days $40 . 00 per load 3 Cu. Yard Weekend $50 . 00 per load 35/40 Yard Three (3) Days $265 . 00 per load (6 tons max) 35/40 Yard Five (5) Days $295 . 00 per load (6 tons max) Any container which exceeds six (6) tons in weight is subject to additional dumping fees at the local transfer station. 10/15 Yard Three (3) Days $335 . 00 per load (8 tons max) 10/15 Yard Five (5) Days $365 . 00 per load (8 tons max) Any container which exceeds eight (8) tons in weight is subject to additional dumping fees at the local transfer station. ADDITIONAL RENTAL DAYS: $15 . 00 per extra day, all sizes . OVERLOADED OR UNLEVEL CONTAINER: It is the customer ' s responsibility to reload any container which exceeds nine (9) tons in weight or is not level full . Contractor cannot remove overweight containers . Rental charges will stay in effect until container is reloaded and removed. CITY OF HUNTINGTON BEACH REFUSE RATES EFFECTIVE THROUGH JUNE 30, 1995 RESIDENTIAL (Trash Can) RATE: Flat Rate: $15.20 per residential unit per month. COMMERICAL (Bin Service) RATES: A. Standard Service (shown in dollars per month). BIN SIZE: 1 CU. YARD 2 CU. YARD 3 CU. YARD PICKUPS 1 x Week 48.41 79.11 99.88 PER WEEK: 2 x Week 77.21 116.06 153.93 3 x Week 98.13 149.01 214.02 4 x Week 109.92 177.30 257.59 5 x Week 129.55 218.69 328.89 6 x Week 150.45 252.49 385.74 Contractor may add a$7.50 charge per bin per pickup for push-outs over 30 feet, and a$5.00 charge per month per bin in an enclosure. B. Compacted Service (3 Cu. Yard Only, in dollars per month. Add 25% for 4 Cu. Yard.) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week 199.76 307.86 428.04 515.18 657.78 771.48 C. Temporary Service SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 37.00 per load 3 Cu. Yd. Rent-A-Bin Weekend 47.00 per load 35/40 Yd. Drop Off Box* Three (3) days $318.00 per load 35/40 Yd. Drop Off Box* Five (5) days 345.00 per load 10/15 Yd. Drop Off Box** Three (3) days $350.00 per load 10/15 Yd. Drop Off Box** Five (5) days 380.00 per load *Highside (6 tons max). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dumping fees, and customer may have to order an another container to comply with State of California weight limitation laws. EXHIBIT A CCii/Q 7-/-9✓�- 71'�oict,/ 7�.��9� RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1995, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month) BIN SIZE: 1 CU. YARD 2 CU. YARD 3 CU. YARD PICKUPS 1 x Week 53.41 87.24 110.27 PER WEEK: 2 x Week 85.05 127.72 169.59 3 x Week 107.94 163.63 235.13 4 x Week 120.72 194.44 282.37 5 x Week 142.19 239.79 360.62 6 x Week 165.00 276.73 422.84 Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cu. Yard Only, in dollars per month. Add 25% for 4 Cu. Yard) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week 220.54 339.18 470.26 564.74 721.24 845.68 Temporary Service SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend 50.00 per load 35/40 Yd. Drop Off Box* Three (3) days $352.00 per load 35/40 Yd. Drop Off Box* Five (5) days 382.00 per load 10/15 Yd. Drop Off Box** Three (3) days $388.00 per load 10/15 Yd. Drop Off Box** Five (5) days 421.00 per load *Highside (6 tons max). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dumping fees, and customer may have to order an another container to comply with State of California weight limitation laws. EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1996, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month) BIN SIZE: 1 CU. YARD 2 CU. YARD 3 CU. YARD PICKUPS 1 x Week 51.84 84.69 107.01 PER WEEK: 2 x Week 82.59 124.05 164.67 3 x Week 104.85 159.03 228.50 4 x Week 117.33 189.06 274.59 5 x Week 138.22 233.16 350.64 6 x Week 160.46 269.11 411.18 Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cu. Yard Only, in dollars per month. Add 25% for 4 Cu. Yard) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week 214.02 329.34 457.00 549.18 701.28 822.36 Temporary Service SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend 50.00 per load 35/40 Yd. Drop Off Box* Three (3) days $352.00 per load 35/40 Yd. Drop Off Box* Five (5) days 382.00 per load 10/15 Yd. Drop Off Box** Three (3) days $388.00 per load 10/15 Yd. Drop Off Box** Five (5) days 421.00 per load *Highside (6 tons max). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dumping fees, and customer may have to order an another container to comply with State of California weight limitation laws. EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1997, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month):* Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups Per Week: 1 X Week 51.53 84.26 106.39 2 X Week 82.07 123.25 163.65 3 X Week 104.17 157.92 226.93 4 X Week 116.51 187.68 272.56 5 X Week 137.24 231.46 348.08 6 X Week 159.31 267.11 408.14 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only. Add 25% for 4 Cubic Yard.): 1 X Week 2 X Week 3 X Week 4 X Week 5 X Week 6 X Week $ 212.84 $ 327.53 $ 454.49 $ 546.16 $ 697.43 $ 817.84 Temporary Service: SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 50.00 per load 40 Cu. Yd. Drop Off Box* Three (3) days $ 324.65 per load 40 Cu. Yd. Drop Off Box* Five (5) days $ 354,65 per load 10 Yard Drop Off Box** Three (3) days $ 350.40 per load 10 Yard Drop Off Box** Five (5) days $ 383.40 per load *Highside (6 tons max.). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1998, 1N THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month):* Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups Per Week: 1 X Week 51.14 83.63 105.59 2 X Week 81.46 122.35 162.43 3 X Week 103.41 156.79 225.29 4 X Week 115.67 186.35 270.64 5 X Week 136.26 229.82 345.63 6 X Week 158.18 265.24 405.27 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only. Add 25% for 4 Cubic Yard.): 1 X Week 2 X Week 3 X Week 4 X Week 5 X Week 6 X Week $ 211.18 $ 324.86 $ 450.58 $ 541.28 $ 691.26 $ 810.54 Temporary Service: SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 50.00 per load 40 Cu. Yd. Drop Off Box* Four (4) days $ 324.65 per load 10 Yard Drop Off Box** Four (4) days $ 350.40 per load *Highside (6 tons max.). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are$15.00 each.) EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES EFFECTIVE JULY 1, 1999, IN THE CITY OF HUNTINGTON BEACH Standard Service (shown in dollars per month):* Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups Per Week: 1 X Week 52.68 86.14 108.79 2 X Week 83.88 125.94 167.26 3 X Week 106.44 161.30 231.80 4 X Week 119.00 191.64 278.28 5 X Week 140.16 236.33 355.41 6 X Week 162.69 272.71 416.71 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only. Add 25% for 4 Cubic Yard. 1 X Week 2 X Week 3 X Week 4 X Week 5 X Week 6 X Week $ 217.87 $ 335.26 $ 465.22 $ 559.06 $ 713.89 $ 837.15 Temporary Service: SERVICE SIZE: SERVICE TIME: SERVICE RATE: 3 Cu. Yd. Rent-A-Bin Two (2) days $ 40.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 50.00 per load 40 Cu. Yd. Drop Off Box* Four (4) days $ 330.10 per load 10 Yard Drop Off Box** Four (4) days $ 355.53 per load *Highside (6 tons max.). **Lowside (8 tons max). Any container which exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are $15.00 each.) EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2000 Standard Service (shown in dollars per month): * Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week 52.68 86.14 108.79 Per Week: 2 x Week 83.88 125.94 167.26 3 x Week 106.44 161.30 231.80 4 x Week 119.00 191.64 278.28 5 x Week 140.16 236.33 355.41 6 x Week 162.69 272.71 416.71 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $ 217.87 $ 335.26 $ 465.22 $ 559.06 $ 713.89 $ 837.15 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 41.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 51.00 per load 40 Yard Drop Off Box* Four (4) days $ 335.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 360.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are $15.00 each.) EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2001 Standard Service (shown in dollars per month): Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week 54.20 88.61 111.96 Per Week: 2 x Week 86.26 129.49 172.02 3 x Week 109.42 165.74 238.22 4 x Week 122.28 196.85 285.82 5 x Week 144.00 242.75 365.07 6 x Week 167.13 280.08 428.00 *Contractor may make extra charges for special or additional services in accordance with Section 8.20.120 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $224.49 $345.45 $479.36 $576.05 $735.59 $862.59 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 42.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 52.00 per load 40 Yard Drop Off Box* Four (4) days $ 340.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 365.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10 yard DOB's are $15.00 each.) EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2002 Standard Service (shown in dollars per month): * Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week $ 54.83 $ 89.64 $113.27 Per Week: 2 x Week $ 87.25 $130.96 $174.00 3 x Week $110.66 $167.59 $240.88 4 x Week $123.65 $199.02 $288.95 5 x Week $145.60 $245.42 $369.08 6 x Week $168.98 $283.15 $432.68 *Contractor may make extra charges for special or additional services in accordance with Section 8.21.170 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week , 4 x Week 5 x Week 6 x Week $227.24 $349.68 $485.23 $583.10 $744.60 $873.15 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 43.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 53.00 per load 40 Yard Drop Off Box* Four (4) days $ 343.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 368.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10-yard DOB's are $15.00 each.) EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES (Assumes 4% Franchise Fee) CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2003 Standard Service (shown in dollars per month): Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week $ 56.95 $ 93.09 $117.68 Per Week: 2 x Week $ 90.57 $135.91 $180.64 3 x Week $114,83 $173,78 $249,83 4 x Week $128.22 $206.28 $299.46 5 x Week $150.95 $254.36 $382.53 6 x Week $175.17 $293.42 $448.41 *Contractor may make extra charges for special or additional services in accordance with Section 8.21.170 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $234.19 $360. 88 $500.07 $600.94 $767. 77 $899.87 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 45.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 55.00 per load 40 Yard Drop Off Box* Four (4) days $ 349.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 374.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10-yard DOB's are $15.00 each.) EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2004 Standard Service (shown in dollars per month): * Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week $ 59.23 $ 96.79 $122.41 Per Week: 2 x Week $ 94.15 $141.22 $187.77 3 x Week $119.30 $180.44 $259.44 4 x Week $133.14 $214.09 $310.75 5 x Week $156.71 $263.98 $396.99 6 x Week $181.83 $304.46 $465.32 *Contractor may make extra charges for special or additional services in accordance with Section 8.21.170 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $246.38 $379.13 $526.10 $632.21 $807.31 $946.69 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 46.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 56.00 per load 40 Yard Drop Off Box* Four (4) days $ 356.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 380.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10-yard DOB's are $15.00 each.) EXHIBIT A RAINBOW DISPOSAL COMMERCIAL SERVICE RATES CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2006 Standard Service (shown in dollars per month): * Bin Size: 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard Pickups 1 x Week $ 65.35 $106.76 $135.15 Per Week: 2 x Week $103.75 $155.50 $206.96 3 x Week $131,33 $198.35 1285,30 4 x Week $146.37 $235.09 $341.12 5 x Week $172.19 $289.84 $435.88 6 x Week $199.73 $334.16 $510.79 *Contractor may make extra charges for special or additional services in accordance with Section 8.21.170 (b) of the Huntington Beach Municipal Code. Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard): (Pickups per week shown over Cost per month) 1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week $273.04 $420.17 $583.04 $700.64 $894.69 $1,049.16 Temporary Service: Service Size Service Time Service Rate 3 Cu. Yd. Rent-A-Bin Two (2) days $ 51.00 per load 3 Cu. Yd. Rent-A-Bin Weekend $ 62.00 per load 40 Yard Drop Off Box* Four (4) days $ 380.00 per load 10 Yard Drop Off Box ** Four (4) Days $ 402.00 per load *Highside (6 tons max.). **Lowside (8 tons max.). Any container that exceeds these tonnage limitations is subject to additional dump fees, and the customer may have to order an additional container to comply with State of California weight limitation laws. (Extra days for 40 and 10-yard DOB's are $15.00 each.) EXHIBIT B Example of Formula For the purpose of illustration and by way of example only, assume that : On May 1, 1991, the CPI increase for the period April 1, 1990, through April 1, 1991, is determined to be 5 . 0%; Landfill Tipping fees were increased during said period from $13 .25 to $16 . 50 per ton (a 24 . 5% increase) ; and the Diesel Fuel Price increased during said period from $0. 725 to $0 . 775 per gallon (a 6 . 9% increase) . The following is a statement of the Formula for an increase in the charges based upon the foregoing illustration: (76% x 5 . 0%) + (16% x 24 . 5%) + (8% x 6 . 9%) equals : 3 . 80% + 3 . 92% + 0 . 55% = 08 .27% Thus the collection charges would be increased, commencing on July 1, 1991, by an additional 8 .27%. 1 'P�17 I a t ORDINANCE NO. 3036 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH GRANTING TO RAINBOW DISPOSAL/RAINBOW TRANSFER AND RECYCLI-NG COMPANIES A FRANCHISE TO COLLECT REFUSE The City Council of, the City of Huntington Beach does ordain as follows : SECTION 1 . The Rainbow Disposal and Rainbow Transfer and Recycling Companies are hereby awarded a franchise to collect refuse within the City of Huntington Beach . The terms and conditions of the franchise awarded by this ordinance are contained in the Franchise Agreement attached hereto as Exhibit 1 and incorporated by reference herein as though fully set forth in this Section 1 . SECTION 2 . The City Clerk shall certify to the passage f of this ordinance and cause same to be published within fifteen days of its adoption in the Orange Coast Daily Pilot , a newspaper of general circulation. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 20th day of February 1990 . �J Mayor ATTEST: APPROVED AS TO FORM: City Clerk .9� City Attorney pw-Q REVIEWED AND APPR INITIATED AND PPROVED City Administrator Director of Public Works i S d. No. 3036 STATE OF CALIFORNIA ) ' ) COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH 3 I, CONNIE BRO;KWAY, the duly elected, qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of the said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting therof held on the _day of February 1990 and was again read to said City Council at a regular meeting therof held on the 20th day of February , 1990 , and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council . i 1 AYES: Councilmembers: MacAllister, Winchell, Green, Mays, Bannister, Silva, Erskine NOES: Councilmembers: None ABSENT: Councilmembers: None LZ City Clerk and ex-offie- o Clerk of the City Council of the City of Huntington Beach, California EXHIBIT Example of Formula For the purpose of illustration and by way of example only, assume that: On May 1, 1991, the CPI increase for the period April 1, 1990, through April 1, 1991, is determined to be 5.0%; Landfill Tipping fees were increased during said period from $13.25 to $16.50 per ton (a 24.5% increase); and the Desiel Fuel Price increased during said period from $0.725 to $0.775 per gallon (a 6.9% increase). The following is a statement of the Formula for an increase in the charges based upon the foregoing illustration: (76% x 5.0%) + (16% x 24.5%) + (8% x 6.9%) equals: 3.80% + 3.92% + 0.55% = 08.27% Thus- the- collection .charges would be increased, commencing on July 1, 1991; by an additional 8.27% 'E i :j i, CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK February 7, 1990 Rainbow Disposal Company, Inc. Rainbow Transfer & Recycling, Inc. P. 0. Box 1026 Huntington Beach, CA 92647 The City Council of the City of Huntington Beach at the meeting held Monday, February 5, 1990 approved Refuse Collection and Disposal Services Franchise Agreement by and between the City of Huntington Beach and the Rainbow Disposal and Rainbow Transfer and Recycling Companies. Enclosed is an executed copy of the agreement for your records. Connie Brockway City Clerk CB:bt Enc. (Telephone:714-536-5227) REQUES f FOR CITY COUNCIL ACTION J# 'g�P� Date February 5, 1990 Submitted to: Honorable Mayor and City Council Submitted by: Paul E. Cook, City Administrator APPROVED BY CITY COUNCIL Prepared by: Louis F. Sandoval, Director of Public Works 2J< t9- Subject: NEW REFUSE AGREEMENT �� =&4,303 CITY CL g Consistent with Council Policy? ) Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: STATEMENT OF ISSUE: The existing refuse agreement with Rainbow Disposal is nearing expiration, and a new one has been negotiated. RECOMMENDATION: 1. Adopt the attached ordinance granting a franchise for refuse collection to Rainbow Disposal/Rainbow Transfer and Recycling. 2. Ratify the City Council approval in concept on January 22, 1990, of the attached agreement which has been completed by the City Attorney. ANALYSIS: 1. In order to grant Rainbow Disposal/Transfer an exclusive franchise for refuse collection services it is necessary, pursuant to Section 500 (a) of the City Charter, to adopt the attached ordinance granting the franchise. 2. On January 22, 1990, the City Council approved in concept a new agreement with Rainbow Disposal/Transfer and directed the City Attorney to prepare a contract for the February 5, 1990, Council meeting. This task has been completed and the attached agreement is ready for Council action. FUNDING SOURCE: General Funds ALTERNATIVE ACTION: Reject the agreement and advise staff on how to proceed. ATTACHMENTS: Franchise granting ordinance. New refuse agreement. PEC:LFS:JS:dw 2303g/14 PI O 5/85 4 • CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Paul E. Cook From Louis F. Sandoval City Administrator Director of Public Works Subject REFUSE NEGOTIATIONS Date January 12, 1990 It appears that we have reached agreement with Rainbow Disposal on a new refuse service contract for the city. In order to update you on our negotiations, an overview of the major issues is provided below. The "target date" for our presentation to the City Council is the January 22nd meeting. 1. Corporate Entities The new contract will be with both Rainbow Disposal and Rainbow Transfer and Recycling, two legally separate entities. This is because the transfer station is an integral part of the agreement and inclusion was recommended by the City Attorney. 2. Free Civic Refuse Service Rainbow will collect and dispose of all city generated refuse (at the beach, in the downtown cans, and from city buildings and yards) without charge subject to a $500,000 cap the first year. This "cap" will be adjusted upward over time by an amount equal to the percentage of increase in service charges at the transfer station, and represents a $100,000 increase in the value of the services given to the City. Current free services are valued at about $400,000, but do not include the beach or all the yards. 3. Annual Special Collections The new agreement doubles the number of times per year that a homeowner can receive free disposal of a large household item (such as a sofa or a water heater) from once to twice. 4. Recycling_Program This contract features the addition of a recycling program designed to meet the criteria established by AB 939 for a 25% reduction in the percentage of collected refuse being sent to landfills by 1995 and a 50% reduction of same by 2000. Rainbow can offer the City a choice between curbside separation or central plant processing because of the transfer station, but recommends the central plant because it is more efficient and inexpensive to operate in the long run. The plant, which is scheduled to be in operation within thirty (30) months of the approval of the new contract, will be a major capital investment with the cost to be born by the users. However, it will assure 100% public participation and reduce the effects of scavenging. 5. Toxic Waste Program The new contract also provides a program for the collection and disposal of household toxics. Rainbow is working with the County to establish a program for these wastes which will be free to our residents if County funding is provided. J i Refuse Neg. — Memo to P. Cook January 12, 1990 Page 2 6. Contract Length The present contract, a ten year with a ten year option, is to be replaced by a fifteen (15) year with an annual review/extension provision. This will enable the contractor to obtain the long term financing necessary to fulfill the agreement and thereby protect the City. An annual review will assure compliance with all terms and offer an incentive to the contractor. Under this provision the contractor will receive an automatic one year extension of the agreement for each year of superior service. The old provision that the contract may not be transferred without City Council approval will be retained. 7. Compensation The new contract benefits the City by allowing only one rate increase per year and providing a rate adjustment formula to help control costs. Both parties have reviewed the formula and found it to be fair and equitable. The formula consists of the CPI (76%), landfill fees (16%), and diesel fuel costs (8%) in an effort to be fair to the contractor. An example of the formula is attached. 8. Commercial Franchise Fee A commercial franchise fee, to begin July 1, 1991, is another new provision of the proposed agreement. This new revenue source will compensate the City for the cost of enforcement of the exclusive contract and the greater infrastructure damage caused by commercial accounts. The fee will be one percent (1%) in 1991-92, two percent (2%) in 1992-93, and three percent (3%) after July 1, 1993. It should raise $60,000 in revenue the first year, $132,000.00 the second, $216,000.00 the third, and proportionally more thereafter to help us meet associated costs. 9. Transfer Station User Fee Another new revenue source contained in the proposed contract is the transfer station user fee. This is a permanent one and one quarter percent (1.25%) charge on all "paid" refuse deposited at the transfer station. "Paid" refuse includes that generated outside our City (Fountain Valley, Seal Beach, Westminster, etc.) which is transported into Huntington Beach. The fee is designed to compensate us for the use of our roads, signals and services which are necessary to facilitate this transport. It will commence on July 1, 1990, and should raise $100,000.00 the first year. 10. Base Rates Our team has negotiated with Rainbow to establish equitable base rates from which to begin the contract. We have agreed on a new commercial rate structure to begin on February 1, 1990, and a new residential rate of $9.52 to be effective July 1, 1990. These new rates will retain the City's relative position within the overall range of refuse charges within Orange County. LFS:JS:dw Attachments 2297g . REQUEf� �O` R CITY COUNCI ACTION Date January 22, 1990 Submitted to: Honorable Mayor and City Council Submitted by: Paul E. Cook, City Administrator Prepared by: Louis F. Sandoval, Director of Public Works (� Subject: REFUSE AGREEMENT APPROVED BY CITY COUNCIL 01 CA_ ><� Consistent with Council Policy? [x] Yes [ ] New Policy or Except CiTxm Statement of Issue, Recommendation,Analysis, Funding Source, Alternative Actions,At chments: STATEMENT OF ISSUE: The existing refuse agreement with Rainbow Disposal is nearing expiration, and a new one has been negotiated. U RECOMMENDATION: Approve the new agreement in concept and direct the City Attorney to prepare a contract for the meeting of February 5, 1990. ANALYSIS: Pursuant to City Council direction, a committee composed of the Director of Public Works, the Director of Finance, the City Treasurer, and a Deputy City Administrator entered into protracted negotiations with Rainbow Disposal in order to develop a new agreement. This process is now complete and the new agreement is ready for Council approval in concept. Its main points are summarized in the attached report to the City Administrator-. -- FUNDING SOURCE: General Funds ALTERNATIVE ACTION: Reject the proposed agreement and advise staff on how to proceed. ATTACHMENTS: Report to the City Administrator. LFS:JS:dw 2274g/17 Din r./Sir.