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Home My WebLink AboutResolution 2013-22 - Increasing the daily Residential Refuse r ,scr /atf.a�,0.a; r Dept. ID PW 13-029 Page 1 of 2 Meeting Date:6/17/2013 CITY OF HUNTINGTON BEACH yk REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 6/17/2013 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. 2013-22 increasing the daily Residential Refuse Charge from $0.6233 to $0.6375 Statement of Issue: The Refuse Collection and Disposal Services Franchise Agreement with Rainbow Environmental Services (Rainbow) requires an annual review and adjustment of residential rates in accordance with a ratified formula. An increase of $0.43 per residential unit per month is proposed. Financial Impact: Effective July 1, 2013, pursuant to the formula calculations of Attachment 1, the City will be contractually obligated to pay Rainbow a rate increase of $0.43 per residential unit of service per month via Refuse Fund (50400504) revenue collected from the residential refuse customers. If the .Resolution is approved, the contract rate increase will have no net impact on the Refuse Fund. Recommended Action: Adopt Resolution No.2013-22, "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." Alternative Action(s): Do not approve Resolution No.2013-22 and direct staff to subsidize residential refuse collection service in the amount of$0.43 per unit per month from another City fund. 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 (July 1 to June 30) 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%), Rainbow's average cost of Compressed Natural Gas fuel for March (8%). Although the contract stipulates an annual review and adjustment of the rate, Rainbow agreed to defer the calculated increase for 2012 until July of 2013. On May 22, 2013, Rainbow submitted the rate calculation including the year over year change from 2011 to 2012 and from 2012 to 2013 as shown in Attachment 1. The proposed rate increases the residential refuse rate by $0.43 per residential unit per month. HB -35- Item 4. - 1 Dept.ID PW 13-029 Page 2 of 2 Meeting Date:6/17/2013 The March CPI in 3.34%, landfill dump fee increased 5.78%, and CNG fuel prices decreased 6.11% for a4!et overall increase of 2.972% when the weighting is applied and the three components are combined. This is the first increase since April of 2011, and will be effective for all services rendered after June 30, 2013. The daily refuse collection rate shown on the municipal services bill will increase from $0.6233 to $0.6375. The table below shows the distribution of the residential refuse collection rate assuming approval of the proposed increase. Refuse Collection and Disposal (to Rainbow) $14.56 $14.99 $0.43 Materials Recovery& Recycling (to Rainbow) $3.00 $3.00 $0.00 Public Education Programs (to City) $0.15 $0.15 $0.00 City Billing, Postage & Payment Processing Costs (to City) $1.25 $1.25 $0.00 TOTAL $18.96 $19.39 $0.43 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 fee 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 7% is 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, it will be necessary to subsidize the Refuse Fund with other City funds to compensate for any shortfall. Public Works Commission Action: Not required Environmental Status: Not Applicable Strategic Plan Goal: Not Applicable Attachment(s): 1. 2013 Solid Waste Disposal Rate Certification 2. Resolution No.2013-22, "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." Item 4. - 2 HB -36- .......... ATTACHMENT # 1 Tel (714)847 3581 - Fax(714)8414660 (DRAINBOW PO Box 1026 - 17121 Nichols Lane N Huntington Beach,CA 92647 E V R O.-�IVI E-N CA 11" S E'RV I U, D D f6no GIrlea'ie-�,1 f ";Ss; May 22, 2013 Lori Ann Farrell Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92647 RE: 2013 Solid Waste Disposal Rate Certification Attached is the 2013-2014 Refuse Rate calculation for the City of Huntington Beach residential and commercial solid waste collection provided by Rainbow Disposal Co., Inc. The rate calculated utilizes 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. Effective July 1, 2013 the landfill rate as specified in the County of Orange Waste Disposal Agreements will increase from $31.37 per ton to $32.05 per ton. The previous year landfill rate was $30.30. This change in landfill rate along with CPI and CNG fuel cost change results in a $.43 increase for residential customers Rainbow Disposal Co.,Inc. City of Huntington Beach Residential Rate Formula Data Items Dump Fuel CPI Fee$/ton Price$/Gal 2008 223.6 22.00 2,335 2009 221.4 22,00 1.953 2010 225.5 29,95 1.880 2011 232.2 30.30 1.889 2012 236.9 31.37 1,686 2013 240.0 32,05 1,773 Percentage Change CPI Dump Fee Fuel Price 3.34% 5.78% -6-11% Application of Weighting Percentage CPI Dump Fee Fuel Price Total Weighting Factor 76% 16% 8% 100%. Resultant Rate Change Factor 2.537% 0,924% -0A89% 2.972% Application of Rate Change Factor to the Residential Rate Existing Percent Rate New Rate Change Change Rate Refuse Rate $ 14.56 2,972% 0.43 $ 14.99 MRF Rate 3.00 0.000% - 3.00 Total Rainbow Rate $ 17.56 $ 0.43 $ 17.99 Item 4. - 4 HB -38- Printed oii wc;y;.;,wu content paper 21, Tz � ��" �� .� sin, /,,,�� `\�.; � �� is�� ri �, � \�� ''•r�, x �� ✓„�, �//// •. a� .ram ..,, ,•.r. ._ �,,.,.,.- � / s� ✓� "'� ��. ,. �i/�'A�.� a�`'�,•� 00111 �.:: �,.... .a� 't .,. 1� �,.,.��, �� :...�� ate. E.\` `�. ,„i/ - ��;;,��'€��%".."� � ,, ✓ \ ./„� � � Lori Ann Farrell Director of Finance City of Huntington Beach May 22, 2013 Page 2 of 2 Attached are the supporting documents including CPI report and CNG Bill. CERTIFICATION To the best of our knowledge the information enclosed is complete and accurate. 4- -A- Bruce Shuman Chief Executive Officer Rainbow Disposal Co., Inc. ACKNOWLEDGEMENT L/ ~ ,ti: 6�� JOL/� Lori Ann Farrell Director of Finance City of Huntington Beach §Lj, Printed of HB -39-content paper;; Item 4. - 5 Bureau of Labor Statistics Data Page I of I A to Z Index I FAQs I About BLS I Contact Us Subscribe to E-mail Updates In Follow Us I What's New I Release Calendar I Site Map Search BLS.gov Home I Subject Areas Databases&Tools Publications Economic Releases S Beta Databases, Tables & Calculators by Subject 'FO'N-T SIZE c+' Change Output Options: From; ma3 � To; Elinclude graphs More Form jttj�i'nrlw*,- Data extracted on;May 21,2013(8:09:43 PM) Consumer Price Index-All Urban Consumers Series Id: CtTU7,A4 2 S,7,_0 Not Seasonally AdJusleo Axes: Los County, CA Item: Base Period: `982-P4=1rjCl Download,QJ111 &I, I * , -.1-11.................. ............................................................................ i Year ]an Peb I Mar Apr May Jun JulAug 1� Sep Oct Nov Dec Annual i HALF1 ................ --- _�a _-- . ........... 2003 185.2 16.5] 188.2 . _ 18 7.61 1 8 6 186.3 186.31 186.91 188.2 187.81 187.11 187.0 187.0 1863 187,2 1 194,5 -1-963' 4 188.5 190.1 i 191.5 191791---1-9-3.3 ----19-3.7" 1-93.4 193.11 1969 195.2 193.21 191.51 194.91 2005 195.4 197.41 199,2 201A 201,5 200,7 201.4 203.11 205.8 206,91 205.61 203.9 201.8 199,]2 204.5 2006 206.0 207.51, 208,5 210.5 212A 211A 211.4 211.91 212.9 211.4 211A 210.6 210.4 E209.3 211.6 )9' 0 18 1 -- _ET330_1 2-17,697 218,696 219.943 219.373 217,338 216,260 E218�A16J il)0_7!-212,584 214,760,216.500 217,845 218.596 217.273 217,454 ...........8��i6 9 18 221,431 223.606 224.625 226.651 229.033 229.886 228.484 1227 449 226.159 222.229 219,620 1 225.008 224.3771225.638 1 2009 1220,7191221.439 1221.376 22L693 221522 223.9 6 224,010 224.507 1225.22 1225.264 224.315- 223.643 223.219 221.943 i,224,495 2010 224,610 224.620 1225.483 225.916 226.438 225,877 225,991 226,373 1226.048 1,226.794 225.941 226,639 i 225,894 1225.4911226,298 1 2011 228,652 229 231.606 232.2511��7?9 2_32�2_41 233.319 233.367 232.328 231.303 231�833 233.022i233.049 232.731 231,567 231.928 2012 233,4411234,53712363941 236.866 237.032 236,025 235,776 237.222 238.1041240.111123T675 236.042 236�648 235.807 2374' ............ 1 E239,753 2013 _i 239.9951 239.043 TOOLS CALCULATORS HELP INFO RESOURCES Areas at a Glance Inflation Heir)&Tutorials VMiat's New Inspector General(01G) Industries at a Glance Location Quotient FAQs Careers' BLS Budget and Performance Economic Releases Injury And Illness Glossary Find It!DOL No Fear Act, Databases&Tables About BLS Join our Mailing Lists USA.gov Maps Contact Us Linking&Copyright Info Benefits,gov Disability gov Freedom of information Act I Privacy&Security Statement I Disclaimers I Customer Survey I Important Web Site Notices U.S.Bureau of Labor Statistics Postal Square Building,2 Massachusetts Avenue,NE Washington,DC 20212-0001 wvAy.bls.go Telephone.,1-202-691-5200 1 TDD: 1-800-877-8339 I Contact Us Item 4. - 6 KB -40- iiLtp./idata,bls.gov/cgi-bin/sun7eyniost 5/21/2013 Rainbow Disposal Co.,Inc. Huntington Beach Rate Review CNG Fuel Cost Therms Gas Co Cost Per Diesel Gal Cost Per Compression Cost Per Evaluation Year Purchases! Invoice Therm Equivalent Diesel Gal Cost Gallon Month 2008 22,580.00 $ 18,064.00 $ 0.80 16,245 $ 1.111 $ 1,224 $ 2.34 February 2009 26,298.00 $ 13,802.90 $ 0.52 18,919 $ 0.730 $ 1.224 1.95 February 2010 27,847.00 $ 15,322,71 $ 0.55 20,034 $ 0.765 $ 1.115 1.88 March 2011 27,993.00 $ 15,580.85 $ 0.56 20,139 $ 0.774 $ 1.115 1.89 March 2012 37,818.00 $ 15,521.82 $ 0.41 27,207 $ 0.571 $ 1.115 1.69 March 2013 49.266.00 $ 23,328,63 $ 0.47 35,443 $ 0.658 $ 1.115 1.77 March 41 F Imo' Customer Name Rainbow Disposal Company, Inc. Last Payment Service Address 17121 Nichols L n NGV Date Amount Huntingtn Bch CA 92547 5719 03/20/2013 $23,230.94 j Account dumber 086-844-8257 6 Old Account Number 18-8888-002-516-2 Billing Period: From To Therms Used 49,266 03/01/2013 04/01/2013 SUMMARY OF TRANSPORTATION AND RELATED CHARGES: NATURAL GAS VEHICLE FUEL BILL Description Of Charges Amount Customer Charge 65.00 Commodity Charge 20,522.74 State Mandated Charges 1,423.79 Taxes and Fees 1,317.10 TOTAL CURRENT CHARGE Past Due If Not Paid By 04/23/13 $23,328.63 PREVIOUS BALANCE $0.00 TOTAL AMOUNT DUE 0.7% Late Payment Charge Due If Paid After 04/26/13 $23 328.63 ** FOR QUESTIONS REGARDING THIS BILL, PLEASE CALL RAY CUNNINGHAM AT(213)244-4329 OUR NGV DEPARTMENT IS ALWAYS AVAILABLE TO PROVIDE SERVICE AND INFORMATION REGARDING YOUR NEEDS. PLEASE CALL US AT 1-800-427-2000. P.O. Box C MThe . _ Monterey Park, CA 91756 Gas www.socalgas,com Comyany A SempraEnergy uturty- Item 4. - 8 HB -42- Date ieiai!ed 04/04/2013 ACCOUNT NUIv1BER 086-844-8257 6 Page 2 BILLING SCHEDULE: Contract Allocations Tariff % Therms/month Therms x GNGU 100 49,266 CUSTOMER CHARGE: Tariff Amount GN/GTNG 65.00 Total Customer Charge $65.00 COMMODITY CHARGE: Tariff Eff. Date Therms X Rate Amount GNGU 03/01/2013 49,266 0.41657 20,522.74 Total Commodi Char a 20 522.74 STATE MANDATED CHARGES: Tariff Eff. Date Therms X Rate — Amount Public Purpose Programs Surcharge GNGU 03/01/2013 49,266 0.02822 1,390.29 Total Public Purpose Programs Surcharge $1,390.29 State Regulatory Fee GNGU . 03/01/2013 49,266 0.00068 33.50 Total State Regulatory Fee $33.50 Total State Mandated Surcharges $1 423.79 TAXES AND FEES: Description Eff. Date Usage X Rate Amount Utility Users'Tax 5.00% 1,110.89 Franchise Fee Surcharge 1.00% 206.21 Total Taxes and Fees $1 317.10 METER INFORMATION: Station Effective Prev. Present Pressure Total Billing Total ID Date Read Read Factor CCF Factor Therms 110275612 03/01/2013 882935 931188 1.0000 48253 1.021 49,266 Total 48253 49 266 xB -43- Item 4. - 9 riP.O. Box C ATTACHMENT #2 RESOLUTION NO. 2013-22 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 to Rainbow Transfer and Recycling, and The Revised and Restated Refuse Collection and Disposal Services Franchise Agreement includes a weighted formula comprised of three components for the annual calculation 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 increased, and CPI increased 3.34%, landfill dump fee increased 5.78%, and CNG fuel prices decreased 6.11% for a net overall increase of 2.972% 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 service by 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. 21 The monthly rate for curbside residential refuse collection for basic level of services shall be $14.99 Refuse Collection $3.00 Recycling $0.15 Public Education $1.25 Administration $19.39 13-3788/97575 1 Resolution No. 2013-22 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$0.6375. This increase shall take effect on all billings dated after July 1, 2013, prorated for service from and after July 1, 2013. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of June , 2013. e Mayor REVIEWE APPROVED: INITIATED AND APPROVED: City M nager Director of Public Woiks G' APPROVED AS TO FORM: 1 J,vjj"- 17 City Attorney V 13-3788/97575 2 Res. No. 2013-22 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 17, 2013 by the following vote: AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis NOES: None ABSENT: None ABSTAIN: None Ci Clerk and ex-officio6 Jerk of the City Council of the City of Huntington Beach, California