HomeMy WebLinkAboutAdopt Resolution No. 2015-29 adjusting Residential Refuse Ra 7;
Dept ID PW 15-037 Page 1 of 3
Meeting Date 6/15/2015
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_ CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 6/15/2015
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY. Fred A Wilson, City Manager
PREPARED BY: Travis K Hopkins, PE, Director of Public Works
SUBJECT- Adopt Resolution No 2015-29 adjusting Residential Refuse Rates with Rainbow
Environmental Services and Receive and File 2015 Commercial Refuse Rate
Schedule
Statement of Issue
The Refuse Collection and Disposal Services Franchise Agreement with Rainbow Environmental
Services (Rainbow) requires an annual review and adjustment of residential and commercial rates
in accordance with a ratified formula A decrease of $0 04 per residential unit per month is
proposed Commercial rates are presented as an information item
Financial Impact
Effective August 1, 2015, pursuant to the formula calculations of Attachment 2, the City will receive
a rate reduction of $0 04 per residential unit of service per month payable to Rainbow
Environmental Services If the Resolution is approved, this reduction will have no net impact on the
Refuse Fund (account 50400504) and the previously approved 2014 residential rate will decrease
by the same $0 04
Recommended Action
A) Adopt Resolution No 2015-29, "A Resolution Of The City Council Of The City Of Huntington
Beach Adjusting Residential Refuse Charge By The Formula Established In The Revised And
Restated Refuse Collection And Disposal Services Franchise Agreement As Ratified On March 21,
2011," and,
B) Receive and file the rate sheet for Commercial Solid Waste collection and disposal service
effective July 1, 2015
Alternative Action(s)
Do not adopt Resolution No 2015-29 Residential customers will not be charged the reduced rate
Analysis
The Revised and Restated 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 is determined by a formula with three weighted
variables The variables and their weighting factors (in parentheses) are the Los Angeles-Riverside-
Orange County All Urban Consumer Price Index (CPI) for March (76%), the County of Orange
Landfill Disposal fee (16%), and Rainbow's average cost of Compressed Natural Gas fuel for March
(8%)
Item 12. - 1 H B -1 14-
Dept ID PW 15-037 Page 2 of 3
Meeting Date 6/15/2015
RESIDENTIAL RATES
On June 1, 2015, Rainbow submitted the rate calculation as shown in Attachment 1 The proposed
rate reduces the amount payable to Rainbow for residential collection services $0 04 per residential
unit per month
The Franchise Agreement requires the application of the formula adjustment to the rate paid by the
City to Rainbow However, the Huntington Beach Municipal Code Ch 8 21 030 requires a City
Council Resolution to adjust and establish the residential refuse rate charged by the City to the
residential customer Approximately 93% of the rate collected is paid to Rainbow for trash
collection, disposal and recycling services The remaining funds are retained by the City to provide
State-mandated waste reduction and recycling education programs, and for the City's billing
services, postage, and payment processing expenses If City Council does not approve the
Resolution adjusting the rate charged to the customer by the same amount as the rate adjustment
due to Rainbow, any resulting surplus of funds would be retained in the Refuse Fund in account
50400504
The table below shows the distribution of the residential refuse collection rate assuming approval of
the proposed rate change resolution
Refuse Collection and Disposal (to Rainbow) $15 25 $15 21 -$0 04
Materials Recovery & Recycling (to Rainbow) $3 00 $3 00 $0 00
Total to Rainbow per residential unit per month $18 25 $18 21 -$0 04
City Public Education Programs $0 15 $0 15 $0 00
City Billing, Postage & Payment Processing Costs $1 25 $1 25 $0 00
TOTAL RATE per residential unit per month $19 65 $19 61 -$0 04
The daily refuse collection rate shown on the municipal services bill will be $0 6447 which equates
to a monthly rate of $19 61 per unit per month The new rate will be effective for services provided
after August 1, 2015
COMMERCIAL RATES
Rainbow calculated the 2015 commercial rates per the formula provided in the Franchise
Agreement as described above The revised adjustment decreases the rates for all commercial
collection services, drop off boxes and rent-a-bin service by 0 251% The "Exhibit A Commercial
Service Rates Effective July 1, 2015" as shown in Attachment 3 will become the new Exhibit A of
the Franchise Agreement Commercial fees are invoiced directly to the customer by Rainbow and
are not received or processed by the City This rate adjustment has no impact on City funds and is
provided to City Council as an information item
Public Works Commission Action:
Not required
Environmental Status
Not applicable
Strategic Plan Goal
Strengthen Economic and Financial Sustainability
FIB -115- Item 12. - 2
Dept ID PW 15-037 Page 3 of 3
Meeting Date 6/15/2015
Attachment(s)
1 Resolution No 2015-29, A Resolution Of The City Of Huntington Beach Adjusting Residential
Refuse Charge by The Formula Established In The Revised And Restated Refuse Collection
And Disposal Services Franchise Agreement As Ratified On March 21, 2011
2 Rainbow Environmental Services 2015 Solid Waste Disposal Rate Certification dated
June 1, 2015
3 Exhibit A Commercial Rate Schedule Effective July 1, 2015
Item 12. - 3 HB -116-
ATTACHMENT # 1
RESOLUTION NO 2 015-2 9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
ADJUSTING RESIDENTIAL REFUSE CHARGE BY THE FORMULA ESTABLISHED IN
THE REVISED AND RESTATED REFUSE COLLECTION AND DISPOSAL SERVICES
FRANCHISE AGREEMENT AS RATIFIED ON MARCH 21, 2011
WHEREAS, on July 17, 2006 the City Council adopted Ordinance No 3744, an
ordinance of the City of Huntington Beach granting a franchise to collect refuse to Rainbow
Disposal-and_Rainbow-Transfer-and.Rec_y_chng, d
_ The Revised and Restated Refuse Collection and Disposal Services Franchise Agreement
includes a weighted formula compromised of three components for the annual collection of
compensation to Rainbow Disposal Co. for residential curbside collection as follows
(1) March to March Consumer Price Index for All Urban Consumers ("CPIU") in Los
Angeles, Orange, and Riverside counties established by the U S Bureau of Labor
Statistics,weighted 76%,
(2) the landfill disposal fee, weighted 16%, and
(3) the hauler's cost of Compressed Natural Gas (CNG) fuel, weighted 8%, and
The City desires to provide notice by this resolution that the residential curbside refuse
collection charge commensurate with the factual adjustments established by Rainbow Disposal
Co in accordance with the formula stated above has changed, and
CPI increased 0 5%, landfill dump fee increased 1 7%, and CNG fuel prices decreased
11 5% for a net overall decrease of 0 26%when factored together and weighted
The base formula has not changed
The Huntington Beach Municipal Code Section 8 21 030 provides that the City Council
establishes maximum rates for curbside residential collection services resolution
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows
1 On March 21, 2011 the City Council ratified the formula established in the Revised
and Restated Refuse Collection and Disposal Services Franchise Agreement for
annual adjustments thereafter
2 The monthly rate for curbside residential refuse collection for basic level of services
shall be
$15 21 Refuse Collection
$3 00 Recycling
$0 15 Public Education
125 Administration
$19 61
15-4768/121824 doc
resolution No . LU15—Z9
For each single-family residence and each dwelling unit within a duplex, a triplex, or a
four-plex receiving non-commercial refuse collection services This equates to a daily
rate of$0 6447 This adjustment shall take effect on all billings dated after August 1,
2015 prorated for service from and after August 1, 2015
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 15 t h day of June , 20 15
M r
REVIE APPROVED APPROVED O FO
City e Ci AttorneyZ
ITIATED AND AP ROVED
erector of Public Works
15-4768/121824 doc
Res. No. 2015-29
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 a Regular meeting thereof held on June 15, 2015 by the following vote
AYES: Posey, O'Connell, Katapodis, Hardy, Sullivan
NOES: Peterson
ABSENT: Delgleize
ABSTAIN: None
d
City Cork and ex-officio erk of the
City Council of the City of
Huntington Beach, California
FATTAC #2
(2)RAINBOW Tel 0 Bo 810 6 - • Fax Ich 841 4660
PO Box 1026 • 17121 Nichols Lane
ENVIR®RlMENTAI�f?UVV L'S o Huntington Beach,CA 92647
Providing Greener Possibilities"' i"'`"'"''
June 1,2015
Lori Ann Farrell
Director of Finance
City of Huntington Beach
2000 Main St
Huntington Beach, Ca 92648
RE. 2015 Solid Waste Disposal Rate Certification
Dear Ms Farrell:
Attached is the 2015-2016 Refuse Rate calculation for the City of Huntington Beach residential and
commercial solid waste collection provided by Rainbow Environmental Services.
In accordance with the terms of the franchise agreement,The City of Huntington Beach should consider
Rainbow's compensation by dividing the current fee into like components(76%; 16%; 8%) The City of
Huntington Beach shall then apply the increases in each of the factors components(1-3)to each of the
corresponding percentages of the rate
The rate utilizes a formula which is based on three factors.
1. The projected percentage of increase or decrease in the Bureau of Labor Statistics Consumer
Price Index(CPI)for the Orange County area from March to March of the preceding twelve (12)
months This factor constitutes seventy-six(76%)of the rate adjustment
2. The increase or decrease in the Orange County landfill tipping fees.This factor constitutes
sixteen percent(16%)of a rate adjustment and is based upon the tipping fee adopted by Orange
County for the subsequent fiscal year
3 The increase or decrease in the average per gallon price of fuel as paid by Rainbow during the
March to March timeframe noted above This factor constitutes eight percent(8%)of a rate
adjustment(Please refer to attachment for calculation).
In accordance with the factors outlined above,the rate will decrease by$0 251%.
Rainbow Environmental Services respectfully requests the City of Huntington Beach's consideration in
the rate compensation adjustment proposed herein for implementation on July 1, 2015
Please let us know if you have questions or comments and thank you for the opportunity to serve the
solid waste and recycling needs of the City of Huntington Beach
Ynf 1 Printed on i H B -1 19-tent paper Item 12. - 6
Providing P• •
Lori Ann Farrell
Director of Finance
City of Huntington Beach
June 1,2015
Page 2 of 2
Enclosed are the supporting documents including the CPI report.
CERTIFICATION
To the best of our knowledge the information enclosed is complete and accurate.
Jerry Moffatt
General Manager
Rainbow Disposal Co,Inc
ACKNOWLEDGEMENT
Lo i Ann Farrell
Director of Finance
City of Huntington Beach
Item 12. - 7 CO Printed c HB -120-ontent paper
Rainbow Disposal Co,Inc
City of Huntington Beach
Residential Rate Formula
Data Items Dump Fuel
CPI Fee$/ton Price$/Gal
2013 2400 3205 1 773
2014 2425 3236 2 157
2015 2437 3290 1912
Percentage Change
CPI Dump Fee Fuel Price
051% 167% -1136%
Application of Weighting Percentage
CPI Dump Fee Fuel Price Total
Weighting Factor 76% 16% 8% 100%
Resultant Rate Change Factor 0 391% 0 267% -0 909% -0 251°,6
Application of Rate Change Factor to the Residential Rate
Existing Percent Rate New
Rate Change Change Rate
Refuse Rate $ 1525 -0 251% (0 04) $ 1521
MRF Rate 300 0 000% - 300
Total Rainbow Rate $ 1825 $ (0.04) $ 1821
HB -121- Item 12. - 8
Rainbow Disposal Co,Inc
City of Huntington Beach
Commercial Rate Formula
Data Items Dump Fuel
CPI Fee$/ton Price$/Gal
2013 24000 3205 1 773
2014 24249 3236 2 157
2015 24374 3290 1912
Percentage Change
CPI Dump Fee Fuel Price
0 51% 1 67% -11 36%
Application of Weighting Percentage
CPI Dump Fee Fuel Price Total
Weighting Factor 76% 16% 8% 100°�
Resultant Rate Change Factor 0 391% 0 267% -0 909% -0 251%
Commercial Refuse Rate Change Percentage -0 251%
Existing Percent New
Rate Change Rate
City Service Cost Cap $ 1,025,258 -0.251% $ 1,022,686
Item 12. - 9 xB -122-
Commercial Commercial
Service Rates Service Rates
Calculated Effective 7/1/15 Calculated 7/1/15
Basic Franchise State Total 2014 2015
Service Fee Recycling Fee Rate Rate
1 Yard
1 X Per Week 7019 3.51 266 7636 7655 7636
2 X Per Week 11011 551 540 121.02 121 31 121 02
3 X Per Week 13792 690 814 16296 15332 15296
4 X Per Week 15164 758 1092 17014 17054 17014
5 X Per Week 17748 887 1366 20002 20049 20002
6 X Per Week 20522 1026 1642 231 90 23245 231 90
2 Yard
1 X Per Week 11426 571 470 12467 12498 12467
2 X Per Week 16378 8.19 922 181 19 18162 181 19
3 X Per Week 20529 1026 1498 23054 231 08 23054
4 X Per Week 24076 1204 2004 27284 27348 27284
5 X Per Week 29645 1482 2504 33631 33710 33631
6 X Per Week 34043 1702 3008 38753 38843 38753
3 Yard
1 X Per Week 14604 730 471 15805 15844 15805
2 X Per Week 21995 11 00 1050 241 45 24204 241 45
3 X Per Week 29641 1482 2054 331 77 33256 331 77
4 X Per Week 348 16 1741 3014 39571 39663 39571
5 X Per Week 44580 2229 3768 50577 50696 50577
6 X Per Week 52122 2606 4522 59251 59389 59251
3 Yard Compactor
1 X Per Week 30569 1528 - 32097 32178 32097
2 X Per Week 47040 2352 - 49392 49517 49392
3 X Per Week 65274 3264 - 68538 68711 68538
4 X Per Week 78441 3922 - 82363 82571 82363
5 X Per Week 1,00165 5008 - 1,051 73 1,05439 1,051 73
6 X Per Week 1,17460 5873 - 1,23332 1,23644 1,23332
Basic Franchise State Total 2014 2015
Service Fee Recycling Fee Rate Rate
40 Yd DOB(4) 46524 46524 46200 46500
8 Yd DOB(4) Lowboy 50756 50756 50200 50800
10 Yd DOB(4) 37239 37239 37300 37200
RAB-Weekday 5885 5885 5900 5900
RAB-Weekend 7282 7282 7300 7300
HB -123- Item 12. - 10
a�
Bureau of Labor Statistics
N Consumer Pace Index-All Urban Consumers
Original Data Value
Series Id: CUURA421 SAO,CUUSA421 SAO
Not Seasonally Adjusted
Area: Los Angeles-Riverside-orange County, CA
Item, All rterns
Base Period; 1982-84=100
Years: 2005 to 2015
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec HALF1 HALF2
2005 1954 1974 1992 201126 5 2007 2014 2031 2058 2069 2056 203.9 1992 2045
2006 2060 2075 2085 2105 2124 211 1 2114 2119 2129 2114 211 1 2106 2093 2116
2007 212 584 214 760 216 500 217 845 218 596 217 273 217 454 217 330 217 697 218 696 219 943 219 373 216 260 218 416
2008 220 918 221 431 223 606 224 625 226 651 229 033 229 886 228 484 227 449 226 159 222 229 219 620 224 377 225 638
2009 220 719 221 439 221 376 221 693 222 522 223 906 224 010 224 507 225 226 225 264 224 317 223 643 221 943 224 495
2010 224 610 224 620 225 483 225 916 226 438 225 877 225 991 226 373 226 048 226 794 225 941 226 639 225 491 226 298
2011 228 652 229 729 232 241 233 319 233 367 232 328 231 303 231 833 233 022 233 D49 232 731 231 567 231 606 232 251
2012 233 441 234 537 236 941 236 866 237 032 236 025 235 776 237 222 238 104 240 111 237 675 236 042 235 807 237 488
2013 238 015 239 753 239 995 239 043 239 346 239 223 238 920 239 219 239 611 239 940 238 677 238 742 239 229 239 185
r 2014 239 857 241 059 242 491 242 437 243 362 243 528 243 727 243 556 243 623 243 341 241 753 240 475 242 122 242 746
2015 239 724 241 297 243 738
Source Bureau of Labor Statistics Generated on-April 20,2015(04 49 12 PM)
TT C FI M E N T #3
EXHIBIT A
RAINBOW DISPOSAL COMMERCIAL SERVICE RATES
CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2016
Standard Service (shown in dollars per month): *
Bin Size 1 Cubic Yard 2 Cubic Yard 3 Cubic Yard
Pickups 1 x Week $76 36 $124 67 $158 05
Per Week 2 x Week $121 02 $181 19 $241 45
3 x Week $152 96 $230 54 $331 77
4 x Week $170 14 $272 84 $395 71
5 x Week $200 02 $336 31 $505 77
6 x Week $231 90 $387 53 $592 51
*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 26% 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
$320 97 $493 92 $685 38 $823 63 $1051 73 $1233 32
Temporary Service:
Service Size Service Time Service Rate
3 Cu Yd Rent-A-Bin Two (2) days $59 00 per load
3 Cu Yd Rent-A-Bin Weekend $73 00 per load
40 Yard Drop Off Box* Four (4) days $465 00 per load
10-Yard Drop Off Box Four (4) days $372 00 per load
8 Yard Drop Off Box** Four (4) Days $508 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, 10 and 8-yard DOB's are $15 00
each )
HB -125- Item 12. - 12