HomeMy WebLinkAbout2011/2012 Residential Curbside Refuse Collection Rates with Council/Agency Meeting Held
Deferred/Continued to:
App oved ❑ Co dit' n II A ro d ❑ Deni d Yy Cl rk's Sig tune
Council Meeting Date: March 21, 2011 Department ID Number: PW 11-015
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL. ACTION
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. 2011-19 establishing 2011/2012 Residential
Curbside Refuse Collection Rates with Rainbow Disposal Company,
Inc., effective April 1, 2011 and billed to residential customers through
the Water Billing process
Statement of Issue: The Refuse Collection and Disposal Services Franchise Agreement
with Rainbow Disposal Co., Inc., requires an annual review of the rate of compensation for
residential refuse collection services. Staff has reviewed the compensation stipulated in the
Franchise Agreement and negotiated the proposed rate with Rainbow and is recommending
a rate that includes adjustments to Rainbow compensation and city administration and
maintenance fees. The city is complying with Proposition 218. Staff is recommending that
the City Council adopt the resolution implementing the new rate for residential refuse
customers and ratifying the rate methodology for future rate adjustments.
Financial Impact: Revenue from the residential refuse rate is received into the Refuse
Fund (504) and is used to fund the operations of the residential refuse program. If the rate
increase is approved via resolution, there will be no net impact to the Refuse Fund or other
city funds.
Recommended Action: Motion to:
i
Adopt Resolution No. 2011-19, "A Resolution of the City Council of the City of Huntington
Beach Adjusting and Ratifying Residential Refuse Rates By The Formula Established In The
Revised and Restated Refuse Collection And Disposal Services Franchise Agreement"
Alternative Action(s): Deny the recommended action to increase the residential refuse
rate, or direct staff to increase the rate in an amount different than proposed. Approve a
commensurate appropriation to the Refuse Fund from other city funds if necessary.
HB -151- Item 12. - 1
Res. No. 2011-19
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
1, 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, Flo 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 March 21, 2011 by the following vote:
AYES: Shaw, Harper, Hansen, Carchio, Dwyer
NOES: Bohr, Boardman
ABSENT: None
ABSTAIN: None
Cit Jerk and ex-officio rk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #2
DISPOSAL CO., INC.
P.O. BOX 1026 * HUNTINGTON BEACH, CA 92647-1026 • (714) 847-3581 FAX: (714) 841-4660
January 20, 2011
Lori Ann Farrell
Director of Finance
City of Huntington Beach
2000 Main Street
Huntington Beach, California 92647
RE: 2010 Solid Waste Disposal Rate Certification
Attached is the 2010-2011 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.
As you know, effective July 1, 2010 the landfill rate as specified in the County of Orange
Waste Disposal Agreements increased from $22 per ton to $29.95 per ton: a 36.14%.
increase. The landfill increase alone for 2010 would result in a $.82 increase for
residential customers and a 5.782 % increase to commercial customers as calculated by
the rate formula. For this reason, as well as the general economic decline and the 2008
commodity value reduction, the calculated 2009 rate reduction was deferred to offset the
2010 rate increase. Further, we performed an analysis of landfill cost as it relates to
revenues, and determined that the weighting factor of the landfill rate of 16% contained
in the Agreement could be reduced to 13% also reducing the impact of the landfill rate
increase.
Given the continued economic downturn and in the interest of providing rate relief to
Huntington Beach residents as well as Prop 218 public notification time requirements,
Rainbow deferred the residential rate change and Proposition 218 process to commence
January 2011 if a rate increase pursuant to the rate formula is deemed necessary. Any
rate change as a result of a January 2011 rate change process would be effective
through July 1, 2012 thus freezing the rate beyond the July 2011 rate review period.
Accordingly, Rainbow is requesting the City of Huntington Beach to initiate the
notification requirements for the rate formula contained in the Agreement with the landfill
portion weighting of 13% (CPI weighting of 79%).
Secondly, to provide further rate relief for the commercial businesses within the City of
Huntington Beach we proposed to discount this year's calculation (weighting factor of 0),
of the CPI component of the Commercial Rate Calculation and the landfill weighting
factor of 13%, as discussed above, reducing the rate change percentage to 3.64%.
Additionally, we propose to have these rates be effective until July 1, 2012, thus freezing
the rates for an additional year. We believe this proposal provides appropriate rate relief
to the citizens and businesses of Huntington Beach. This proposal was accepted and
the corresponding discounted rate became effective July 1, 2010
PRINTED cD PAPER 6
HB -161- Item 12. - 11
Lori Ann Farrell
Director of Finance
City of Huntington Beach
January 20, 2011
Page 2 of 2
Supporting documents including CPI report, fuel bills and commercial rate schedules
were provided previously to the City.
CERTIFICATION
To the best of our knowledge the information enclosed is complete and accurate.
9j,
Bruce Shuman, CPA Ron Shenkman
Chief Executive Officer Chairman
Rainbow Disposal Co., Inc. Rainbow Disposal Co., Inc.
ACKNOWLEDGEMENT
r f
Lori Ann Farrell
Director of Finance
City of Huntington Beach
Item 12. - 12 PRINTED HB -1 vD ;
Rainbow Disposal Co.,Inc.
City of Huntington Beach
Residential Rate Formula
Data Items Dump Fuel
CPI Fee$/ton Price$/Gal
2006 208.5 22.00
2007 216.5 22.00
2008 223.6 22.00 2.335
2009 221.4 22.00 1.953 .
2010 225.5 29.95 1.880
Percentage Change
CPI Dump Fee Fuel Price
1.82% 36.14% -3.76%
Application of Weighting Percentage
CPI Dump Fee Fuel Price Total
Weighting Factor 0% 13% 8% 21
Resultant Rate Change Factor 0.000% 4.698% -0.301% 4.397%
Application of Rate Change Factor to the Residential Rate
Existing Percent Rate New
Rate Change Change Rate
Refuse Rate $ 14.22 4.397% 0.63 $ 14.85
MRF Rate 3.00 0.000% - 3.00
Sub-Total 17.22 0.63 17.85
2009 Deferred Rate Adjustment (0.29) (0.29)
Total Rainbow Rate $ 17.22 0.34 $ 17.56
HB -1 - Item 12. - 13
ATTACHMENT #3
Item 12. _ 14 HH -164-
REQUEST FOR COUNCIL ACTION
MEETING DATE: 3/21/2011 DEPARTMENT ID NUMBER: PW 11-015
Analysis: The city's residential refuse service is provided by Rainbow Disposal Company,
Inc. (Rainbow) per the terms and conditions agreed upon in the Refuse Collection and
Disposal Services Franchise Agreement (contract) approved by City Council on July 3, 2006.
The city's Refuse Fund (50400504), is the enterprise fund where revenue collected from the
residential trash service customer is received and the expenses of the service are paid. The
objective is to maintain a balanced fund budget. In order to balance the Refuse Fund, any
increase to the compensation paid to Rainbow Disposal must include a corresponding
increase to the rate charged to the customer or an appropriation from other city funds.
Rainbow Compensation:
The contract with Rainbow requires an annual review and adjustment of their compensation.
Compensation is the monthly amount paid by the city to Rainbow for providing its contracted
services. The current compensation rate is:
$14.22 Residential trash collection
3.00 Recycling fee
$17.22 Monthly compensation per unit of service
Adjustments are determined by a weighted formula with three variables as listed below:
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 fee per ton disposed ("Tipping"), weighted 16%; and
3. the hauler's cost of Compressed Natural Gas (CNG) fuel, weighted 8%.
The following table illustrates how the formula weighting is applied using the actual data from
2010:
CPI -lan-4 0
2009 221.38 22.00 1.95
2010 225.48 29.95 1.88
% change 1.85% 36.1% -3.7%
weighting 76% 16% 8%
% change X weighting 1.406% 5.782% -0.299%
1.406 +5.782 -0.299 = 6.890% increase or$0.98 per unit per month
The contract year is July 1 to June 30. Typically, proposed rate changes are considered by
City Council in May or June in anticipation of a July 1 contractor compensation change. Staff
negotiated with Rainbow to delay the contractual increase due in 2010 and reduce the
percentage increase. Instead of $0.98 Rainbow has agreed to $0.34 effective April 1, 2011,
and to freeze rates until the contractual evaluation in June 2012. This is the first residential
rate change proposed since 2006. The proposal also includes a 2009 deferred rate
reduction of-$0.29.
Item 12. - 2 HB -152-
REQUEST FOR COUNCIL ACTION
MEETING DATE: 3/21/2011 DEPARTMENT ID NUMBER: PW 11-015
The result is:
$14.22 Current Rainbow trash collection compensation
06.89% Formula percentage change
$0.98 Total formula increase
- 0.29 Less credit for reduction deferred from 2009
$0.69
0.35 Less one-time weighting adjustment from Rainbow
$0.34 Total proposed Rainbow compensation increase for 2011
Rainbow's compensation per unit of service will increase from $14.22 per unit to $14.56 per
unit per month.
Rate Charged to Customers:
The residential rate is the monthly amount charged by the city to its residents for weekly
trash collection service as follows:
$14.22 Residential trash collection (paid to Rainbow)
3.00 Recycling fee (paid to Rainbow)
0.15 Public education
1.25 City administration and overhead
$18.62 Monthly fee to customers
The first two components of the residential rate, the trash collection and the recycling fees,
are a direct pass-through collected to pay the city's contract obligation to Rainbow. The
public education component is used to fund waste reduction education programs provided to
residents as mandated by the Integrated Waste Management Act of 1989. The city
administration and overhead is retained by the city in the Refuse Fund to pay for the
attributed expenses of the program.
Staff annually reviews the city's actual and projected administrative expenses attributed to
the residential refuse collection program. The expenses of the Refuse Fund include staff
salaries and benefits; a proportional share of the municipal services billing, collection and city
overhead known as the Cost Allocation Transfer; and operating and maintenance expenses.
Fund Expenses Projected FY 2011/2012 Budget
Personnel 302,714
Cost Allocation 503,361
Operating 23,000
Reimbursement for Scavenging Enforcement 81,190
Total Admin Costs $747,885
Per unit Monthly Fund Expense 1.32
Current Administrative Rate 1.25
Increase required for full cost recovery $0.07
H -153- Item 12. - 3
REQUEST FOR COUNCIL ACTION
MEETING DATE: 3/21/2011 DEPARTMENT ID NUMBER: PW 11-015
It has not been necessary to raise the administrative portion of the refuse rate since 2003.
Since that time, City Council approved a change from manual to automated trash collection,
which has resulted in additional street tree maintenance to accommodate placing residential
carts curbside with sufficient clearance for the collection truck to operate. It is anticipated
that approximately 2,600 parkway trees will require partial trimming to raise the tree canopy
to provide clearance for the collection trucks, at a cost of approximately $50 per parkway
tree. These maintenance costs equate to a $0.23 per month increase.
Total Proposed Rate Adjustment:
The proposed residential refuse rate increase is:
$0.34 Compensation to Rainbow as provided by Franchise Agreement
0.30 City's Attributed Administration and Maintenance Expenses
$0.64 Total Increase per Residential Unit per Month
The rate to the residential customer will increase from $18.62 per unit per month to $19.26
per unit per month. Attachment 3 is a survey of 2010 residential rates for Orange County
cities. At the proposed new rate of $19.26, Huntington Beach would remain eight highest
residential rate in the County. Staff recommends that, absent a majority protest, City Council
approve the rate increase as proposed.
Proposition 218 Public Hearing Requirement:
After the California Legislature enacted Proposition 218 there were many questions as to the
applicability of the constitutional provision. California municipal lawyers argued for over a
decade that fees charged for certain consumption based services such as water and sewer
were not subject to the mandates of the majority protest proceeding required by Article XI I D,
§ 6(a) and the substantive rules regarding the use of fee proceeds (such as a ban on general
fund transfers) of § 6(b). These questions were resolved by Bighorn-Desert View Water
Agency v. Verjil, 39Cal.4th 205 (2006).
The Court concluded that metered rates for consumption of water are "property related
fees" subject to the measure. The ruling ostensibly applies to sewer service charges and to
charges for refuse collection made by a government agency, rather than by a private waste
hauler. Since the services provided by Rainbow are charged to the customers by the City of
Huntington Beach and not by Rainbow directly, then it can reasonably be concluded that this
fee is subject to the provisions of this ruling. Article 13D of the California Constitution created
a category of fees known as "property related fees." Such fees may not be imposed or
increased unless a local government conducts a majority-protest proceeding 45 days after
mailing notice to all fee payers. Art. 13D, § 6(a).
The City is following the majority protest procedures as set forth in the California Constitution
Article XIII in an abundance of caution in order to ratify the rate methodology for current and
future rate adjustments. On February 3, 2011, a notice of public hearing and the proposed
rate adjustment and methodology (Attachment 4) was mailed to all residential property
owners and refuse customers served by the City. Affected ratepayers are given a minimum
of 45 days from the date of the mailing to submit a protest to the rate adjustment.
Item 12. - 4 HB -154-
REQUEST FOR COUNCIL. ACTION
MEETING DATE: 3/21/2011 DEPARTMENT ID NUMBER: PW 11-015
The City cannot modify the residential refuse rate if a majority, 50% plus 1, of affected
ratepayers protest the proposed adjustment. According to municipal billing records, as of
March 1, 2011, there are 46,860 residential trash customers. The city must receive 23,431
protests to constitute a majority protest. A final tally of protests will be reported by staff at the
public hearing. If a majority protest is received, invalidating the proposed residential rate
increase, then City Council will be asked to approve an appropriation of other city funds to
maintain a balanced budget in the Refuse Fund.
Environmental Status: Not applicable.
Public !Works Commission Action: Not required.
Strategic Plan Goal: Maintain, improve and obtain funding for infrastructure and equipment
Attachment(s):
m ■ o
1. Resolution No. 2011-19, "A Resolution of the City Council of the City of
Huntington Beach Establishing Residential Curbside Refuse Collection
Rates."
2. 2010 Solid Waste Disposal Rate Certification from Rainbow Disposal
Co., Inc.
3. August 2010 Survey of County-wide Residential Trash Collection
Rates
4. Notice of Public Hearing mailed February 3, 2011
HB -1 - Item 12. - 5
ATTACHMENT # 1
Item ,2 . s HB ,»
ATTAC H MENT # 1
RESOLUTION NO. 2011-19
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ADJUSTING AND RATIFYING
RESIDENTIAL REFUSE RATES BY THE FORMULA ESTABLISHED
IN THE REVISED AND RESTATED REFUSE COLLECTION
AND DISPOSAL SERVICES FRANCHISE AGREEMENT
WHEREAS, on July 17, 2006 the City Council adopted Ordinance No. 3744,
granting a franchise to collect refuse to Rainbow Disposal and to Rainbow Transfer and
Recycling, and
The state of the law remains unclear as to the applicability of California
Constitution Article XIII (Proposition 218) to residential refuse rates. In order to avoid
any future legal challenges, the City is following the procedural and substantive mandates
of Proposition 218.
The Revised and Restated Refuse Collection and Disposal Services Franchise
Agreement includes a weighted fee formula comprised of three components 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 adjust the maximum residential curbside refuse collection rate
annually commensurate with the adjustments established by Rainbow Disposal Co. in
accordance with the formula stated above, and
The residential curbside collection rate includes a maximum $1.25 per dwelling
unit per month for the City's administrative and overhead expenses attributed to the
residential curbside refuse collection services provided, and
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. After a duly noticed City Council public hearing on March 21, 2011 to receive
testimony and protest regarding the proposed residential curbside refuse collection
1
11-2819/61323
Resolution No. 2011-19
rate, the City Council finds that no such majority protest was received and that the
rates shall be adjusted as follows:
The monthly rate for curbside residential refuse collection for basic level of
services shall be
$14.56 Refuse Collection
$3.00 Recycling
$0.15 Public Education
1.25 Administration
$18.96
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 $0.6233. This increase shall take effect on all billings dated after
April 1, 2011,prorated for service from and after April 1,2011.
2. That the Refuse Collection charges for residential curbside collection will be
adjusted annually in accordance with the formula set forth in the Revised and
Restated Refuse Collection and Disposal Services Franchise Agreement 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%.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at
a regular meeting thereof held on the 21 s t day of March ;2011.
a
or
REVIE ND APPROVED: INITIATED AND APPROVED:
Cit er �Direc�torof Public orks
APPROVED AS TO FORM:
_City Attor6y pkV
2
11-2819/613 23 6 13 2 3
SURVEY OF ORANGE COUNTY TRASH COLLECTION RATES 2010
Residential Rates Highest to Lowest
eAL" tl
PuTY
1 PLACENTIA 20.61 Republic Waste of SC dba Placentia Disposal
2 STANTON 20.10 CR&R
3 COSTA MESA 19.95 Costa Mesa Disposal for Costa Mesa San.District
4 VILLA PARK 19.77 Republic Services dba Villa Park Disposal
5 GARDEN GROVE 19.66 Republic Waste of SC dba Garden Grove Disposal
6 ANAHEIM 19.53 Republic Waste of SC dba Anaheim Disposal
7 YORBA LINDA 19.45 Republic Services dba Yorba Linda Disposal
8 HUNTINGTON BEACH 19.26" Rainbow Disposal
9 LA HABRA 18.32 Waste Management
10 SANTAANA 18.24 Waste Management
11 BREA 18.21 Republic Waste of SC dba Brea Disposal
12 FULLERTON 18.02 Republic Waste of SC dba MG Disposal
13 LAGUNA NIGUEL 17.86 CR&R
14 FOUNTAIN VALLEY 17.83 Rainbow Disposal
15 CYPRESS 17.45 Republic
16 SAN JUAN CAPISTRANO 17.26 CR&R
17 LAGUNA BEACH 17.21 Waste Management
18 SEAL BEACH 17.02 Republic Services dba Consolidated Disposal
19 SAN CLEMENTE 16.65 CR&R
20 LA PALMA 16.55 EDCO Disposal dba Park Waste&Recycling
21 BUENA PARK 15.62 EDCO Disposal dba Park Waste&Recycling
22 DANA POINT 14.93 CR&R
23 WESTMINSTER 14.75 Midway City Sanitary District
24 ALISO VIEJO 14.72 CR&R
25 TUSTIN 14.68 CR&R
26 LAGUNA HILLS 14.27 CR&R
27 LAKE FOREST 13.71 Waste Management
28 RANCHO SANTA MARGARITA 13.02 CR&R
29 MISSION VIEJO 12.11 Waste Management
30 IRVINE 11.89 Waste Management
31 LOS ALAMITOS 11.80 Republic Services dba Consolidated Disposal
32 ORANGE 11.52 CR&R
33 LAGUNA WOODS 9.29 Ware Disposal
34 1 NEW PORT BEACH' 2.93 City of Newport Beach
'Newport Beach residential rate is for recycling only.There is no charge to residents for trash collection and disposal.
`"Current rate$18.62 plus proposed$0.64 increase equals total proposed rate of$19.26 for 2011.
H -1 - Item 12. - 15
ATTACHMENT #4
Item 12. - 16 HB -166-
WING
yNiPLR9TId
Notice of Public Hearing Regarding the
Proposed Residential Trash Collection Rate Increase
TY
On March 21, 2011 at 6:00 p.m. at a regularly scheduled meeting of the Huntington Beach City
Council, the City Council will conduct a Public Hearing in the City Council Chambers located at
2000 Main Street, Huntington Beach to discuss the proposed Residential Trash Collection Rates.
The purpose of the Public Hearing is to discuss the proposed rates and increase and gather input
regarding Residential Trash Collection Rates and Increase from the rate payers. The City Council
is considering an increase to the Residential Trash Collection Rate and will be accepting protests
to this potential action. If protests by a majority(50%plus one)of property owners are received
by the City Clerk before the close of the Public Hearing, the fee increase cannot be adopted.
This Residential Trash Collection charge is currently fixed at$0.6122 per unit per day, which
equates to $18.62 per unit per month. The residential collection contract service charge as
provided in the Franchise Agreement is based on a weighted formula comprised of three
components:
(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—76%;
(2)the landfill tipping fee— 16%; and
(3)the hauler's cost of Compressed Natural Gas(CNG)fuel—8%.
The March 2010 CPIU increased by 1.9%, the Orange County Landfill tipping fee increased by
36.1%, and the hauler's cost of CNG decreased by 3.7%. These fluctuations, when applied to
the established formula result in a calculated increase of$0.69 per unit per month, although the
actual increase proposed for this year is$0.64 per unit per month and is less than what is
allowable under the weighted formula. If approved, this rate would be effective April 1, 2011
through June 30, 2012, and subject to adjustment annually in accordance with the above formula.
The proposed increase includes $0.30 per unit per month for the City's attributed administrative
and maintenance costs, which shall be reviewed and may be adjusted annually to reflect the
annual percentage adjustment in the March CPIU, available in April each year.
Questions or comments may be directed to the Public Works General Services Division at 714-
960-8861.
City of Huntington Beach GUIDELINES FOR THE SUBMISSION AND TABULATION OF
PROTESTS:
Where notice of a public hearing with respect to a utility rate increase has been given by the City
pursuant to Article XIIID, Section 6 of the California Constitution,the following shall apply:
Submission of Protests
1.Any property owner may submit a written protest to the City Clerk, either by delivery to the City
Clerk's Office, 2000 Main St., Huntington Beach, CA 92648 or by submitting the protest at the
public hearing. Protests must be received before the close of the public hearing on the proposed
rate adjustment. No postmarks will be accepted.
For purposes of these Guidelines the term "property owner" shall mean any owner of record on
the County of Orange Assessor's rolls and any tenant directly liable to pay the assessment,fee or
charge.
HB 7 Item 12. 11 17
2. Each protest must identify the affected property(by assessor's parcel number or street
address)and include the original signature of the property owner. Email protests cannot be
accepted. Although oral comments at the public hearing will not qualify as a formal protest unless
accompanied by a written protest, the City Council welcomes input from the community during the
public hearing on the proposed fees.
3. If a parcel served by the City is owned/rented by more than a single properly owner, each
property owner may submit a protest, but only one protest will be counted per parcel and any one
protest submitted in accordance with these rules will be sufficient to count as a protest for that
property.
4. In order to be valid, a protest must bear the original signature of the properly owner with
respect to the property identified on the protest. Protests not bearing the original signature of a
property owner shall not be counted.
5.Any person who submits a protest may withdraw it by submitting to the City Clerk a written
request that the protest be withdrawn. The withdrawal of a protest shall contain sufficient
information to identify the affected parcel and the name of the property owner who submitted both
the protest and the request that it be withdrawn.
6.A fee protest proceeding is not an election.
7. To ensure transparency and accountability in the fee protest tabulation, protests shall
constitute disclosable public records from and after the time they are received.
Tabulation of Protests
1. The City Clerk, or her designee, shall determine the validity of all protests. She shall not accept
as valid any protest if she determines that any of the following conditions exist:
a. The protest does not identify a property served by the City.
b. The protest does not bear an original signature of a property owner of the parcel
identified on the protest.
c. The protest does not state its opposition to the proposed fees.
d. The protest was not received by the City Clerk before the close of the public hearing
on the proposed fees.
e. A request to withdraw the protest is received prior to the close of the public hearing on
the proposed fees.
2.The City Clerk's decision that a protest is not valid shall constitute a final action of the City and
shall not be subject to any internal appeal.
3.A majority protest exists if written protests are timely submitted and not withdrawn by the
property owners of a majority(50% plus one)of the properties subject to the proposed fee.
To Property Owners
For your written protest to be valid you need to insure that the following information is
included:
1. The protest must include the Street Address or Assessor Parcel Number.
2. The protest must have the original signature of the property owner.
3. The protest must state its opposition to the proposed fee increase.
4. The protest must be received by the City Clerk before the close of the public hearing on
the proposed fee.
Item 12. ❑ 1 ❑ HB F 1-
1
RECEIVED FROM •����'
Connie Ngo AS PUBLIC RECORD Fo OU IL M IIG
OF
7432 Prospect Dr. CITY CLERIC o FIG
Huntington Beach, Ca. 92648 MAN Lm FLYNN,CITY CLERK
. 714-375-0958
To: Huntington Beach City Clerk, Joan L. Flynn
&to Council Members and Mayor of Huntington Beach
2000 Main Street Huntington Beach,.CA 92648
I am, Connie Ngo,,,homeowner of the property's address above.
protest against the trash,collection rate increase.
Hello Mayor and Council Members, today I come here to thank all Huntington
Beach Officers for keeping the trash collection rate stable for the last five years.
For this year�and the next five years, we want the city officers to negotiate on
behalf of the Huntington Beach citizens to keep the trash collection rate the
same.
can prove to you.in three areas why we should not have the.trash collection rate
increase.
1. Assumption:
• Rainbow Disposal recycles profit for 3 recycle bins total 1.00': per week.:
• 47,000 single-family- residents
52 weeks.
Rainbow.Disposal.Minimum Assumed Profit:
$2,444,000.00
2. City of Huntington Beach
charges 47,000 single-family-residents Trash each day: $0.6122/unit
365 days
$10,502,291:00
3. City of Huntington Beach and Rainbow Disposal Total Profit
(without cost of expenses)
$12,946,291:00
This amount does not include multiple rental buildings, companies shopping
centers, restaurants, movie theaters, schools, hospitals, beach's trash bins
recycle collection.
My questions to the City Council Members and Major are:
1.Whv do Rainbow Disposal and City of Huntington Beach need this rate
increase?
2.Why the citizens do not continue to earn the rate relief when we short trash
in separate trash pin, and give the recycle material to generate money such as:
renew aluminum cans, glass, plastic, papers, compost for fertilizer and CNG
(compressed natural gas) for Rainbow Disposal?
3.Does city receive any free services from Rainbow Disposal? Is that
making the city trying to do the rate increase for Rainbow Disposal?
4. Does City Council Members and Mayor represent on the behalf of the
Huntington Beach citizens to negotiate with contractor(s)to keep the rate
the same?
The city letters sent to Huntington Beach citizens are very long, wordy, and
complicated that mislead the citizens to understand that the city wants more
money from the citizens' pockets. Therefore, the citizens are not responding,
there is no way the citizens reach to 50% plus one person protest against the
rate increase until the city educate them clearly and easy to understand.
We, citizens of Huntington Beach, urge city officers to reconsider ..
Rainbow Disposal Company proposed rate increases on behalf of the
Huntington Beach residents.
I am waiting for you to respond to my questions or all the Huntington beach
citizens by our addresses.
Very respectfully,
Connie Ngo
Huntington Beach Fountain Valley
Refuse collection $ 14.56 $ 14.10
Recycling fee $ 3.00 $ 3.00
Public education $ 0.15
City admin. & Overhead $ 1.32 $ 0.73
Maintenance $ 0.23
Monthly fee to customers 19.26 $ 17.83
Roth Cities are serviced by Rainbow Disposal
RECEIVED FROM
AS PUBLIC RD FOR W IL MUM,
4,1 CITY CLERK OFFICE
BAN I..FLYNN, /�
Protests Received for the Trash Rate Increase
Total Eligible Unites 46,860
50% + 1 of Eligible Units 23,431
Total Protests Submitted 337
Total Valid Protests 303
Total Invalid Protests 34
Reasons
No Address or APN 2
Not a Protest 1
No Signature 1
Not in City Limits 2
MFR/Commercial Acct 28
% of Valid Protests compared to all submitted 90%
% of Valid Protests Compared to Eligible Unites 0.63%
% of Valid Protests Compared to 50% + 1 Eligible Unites 1.29%
Original Protest Letters are on File
in the City Clerk's Office
�f
RESOLUTION NO. 2011-19
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ADJUSTING AND RATI/ING
RESIDENTIAL REFUSE RATES BY THE FORMULA ESTA43LISHED
IN THE REVISED AND RESTATED REFUSE COLLVCTION
AND DISPOSAL SERVICES FRANCHISE AG EMENT
/
WHEREAS, on July 17, 2006 the City Council adopted Ordinance No. 3744,
granting a franchise to collect refuse to Rainbow Disposal and to Rainbow Transfer and
Recycling, and
The state of the law remains unclear as to the applicability of California
Constitution Article XIII (Proposition 218) to residential refuse rates. In order to avoid
any future legal challenges, the City is following the procedural and substantive mandates
of Proposition 218.
The Revised and Restated Refuse Collection and Disposal Services Franchise
Agreement includes a weighted fee formula comprised of three components 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 adjust the maximum residential curbside refuse collection rate
annually commensurate with the adjustments established by Rainbow Disposal Co. in
accordance with the formula stated above, and
The residential curbside collection rate includes a maximum $1.25 per dwelling
6
unit per month for the City's administrative and overhead expenses attributed to the
residential curbs refuse collection services provided, and
The City desires to increase the administrative and overhead fee by $0.07 to cover
the increase/d�,cost of providing service, and
T " City desires to include a cost recovery component of$0.23 per dwelling unit
per moth for additional maintenance of the City's parkway trees attributed to the
equipment and operations of the residential curbside refuse collection program, and
�;N
11-2819/61033
Resolution No. 2011-19
s'
The City desires to establish a new maximum administrative and overhead rate of
$1.55 per dwelling unit per month and to adjust this rate annually hereafter in accordance
with the 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, and
The Huntington Beach Municipal Code Section 8.21.030,,//rovides that the City
Council establishes maximum rates for curbside residential°' collection service by
resolution. ,
NOW, THEREFORE, the CityCouncil of the Ci•` of Huntington Beach does
tY �
hereby resolve as follows: /
1. After a duly noticed City Council public heari"ng on March 21, 2011 to receive
testimony and protest regarding the proposedAesidential curbside refuse collection
rate, the City Council finds that no such majority protest was received and that the
rates shall be adjusted as follows:
The monthly rate for curbside residential refuse collection for basic level of
services shall be
$14.56 Refuse Collection
$3/00 Recycling
$0.15 Public Education
a
/$1.32 Administration
$0.23 Maintenance
$19.26
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$0.6332. This increase shall take effect on all billings dated after
April 1, 2011, prorated or service from and after April 1, 2011.
2. That the Refuse Co lection charges for residential curbside collection will be
adjusted annually in accordance with the formula set forth in the Revised and
Restated Refuse collection and Disposal Services Franchise Agreement 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) Zhauler's
ndfill disposal fee—weighted 16%; and
(3) cost of Compressed Natural Gas (CNG) fuel, weighted 8%.
NJ I
11-2819/61033
Resolution No. 2011-19
3. That the Administration and Maintenance charges will be adjust annually in
accordance with the March to March Consumer Price Index for All Urban
Consumers ("CPIU") in Los Angeles, Orange and Riverside c nties established
by the U. S. Bureau of Labor Statistics.
PASSED AND ADOPTED by the City Council of the Cit of Huntington Beach at
a regular meeting thereof held on the day of , 2011.
Mayor
REVI AND APPROVED: I �TIATED AND APPROVED:
C4&14ger birector of Public Vorks
APPROVED AS TO FORM:
r16 ,0U
City Attorney r"V 3- j`-1 l
3
11-2819/61033
Prsrt Std
-` U.S. Postage
CITY of HUNTINGTON BEACH Santa Anna CA
` F P.O. Box 190 Permit#61
Huntington Beach, CA 92648-2702
00428....ECRWSS'*C-036 \ y
Resident
16942 Lynn Ln Apt F
Huntingtn Bch CA 92649-3966
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