HomeMy WebLinkAboutCity Council - 2021-05 (2) RESOLUTION NO. 2021-05
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ADJUSTING AND RATIFYING
RESIDENTIAL TRASH RATES BY THE FORMULA ESTABLISHED
IN THE REVISED AND RESTATED REFUSE COLLECTION
AND DISPOSAL SERVICES FRANCHISE AGREEMENT
WHEREAS, Section 8.21.020 of the Huntington Beach Municipal Code requires
that the collection of trash, refuse, recyclable waste material and yard waste shall be
performed exclusively by the City trash collector; and
WHEREAS, Section 8.21.030 (A) of the Huntington Beach Municipal Code
provides that the maximum charge for residential trash collection service 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. This charge shall not apply to persons occupying residential units
such as apartments, mobile home parks, or other multi-family complexes, who are
currently contracting directly with the City trash collector; and
WHEREAS, on July 17, 2006 the City Council adopted Ordinance No. 3744,
granting the Revised and Restated Refuse Collection and Disposal Services Franchise
Agreement to collect trash to Rainbow Disposal and to Rainbow Transfer and Recycling
(the "Franchise"); and
The state of the law remains unclear as to the applicability of California
Constitution Article XIII (Proposition 218) to residential trash rates. In order to avoid any
future legal challenges, the City is following the procedural and substantive mandates of
Proposition 218; and
The Franchise provides that the Residential Trash Collection Rate has three
components. The first component is the fee paid to the trash collection hauler. That fee
increases annually according to the following weighted fee 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, weighted 76%;
2. The landfill disposal fee—weighted 16%; and
3. The hauler's cost of Compressed Natural Gas (CNG) fuel, weighted 8%;
and
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RESOLUTION NO. 2021-05
The second cost component included in the Residential Trash Collection Rate is the
actual costs to the City of providing billing, payment processing, accounting and customer
services. As of July 1, 2020, these costs were $1.89 per month. This cost component
increases annually according to the March CPIU increase; and,
The third cost component included in the Residential Trash Collection Rate is the
actual costs to the City of providing state-mandated recycling education programs. This
cost component is $0.15 per month, and does not increase annually; and
Effective January 1, 2020, the City and its trash experienced a onetime cost
increase of$0.98 per residence per month in order to pay the additional cost to process
residential yard waste imposed upon the City pursuant to State law, specifically, Public
Resources Code Section 41781.3; and
The City desires to adjust the maximum Residential Trash Collection rate annually
commensurate with the adjustments established by Rainbow Disposal Co. in accordance
with the formula stated above; and
Huntington Beach Municipal Code Section 8.21.030 provides that the City Council
establishes maximum rates for Residential Trash Collection service by resolution; and
Most recently, the City Council adopted Resolution No. 2017-26 increasing the
Residential Rate to $20.57 per month, effective November 1, 2017, with automatic annual
increases for the next five years pursuant to the economic indexes of the Franchise
Agreement. Consequently, the rate effective July 1, 2020 is $22.16 per month;
NOW, THEREFORE, the City Council of the City of Huntington Beach does
hereby resolve as follows:
1. The foregoing recitals are all true and correct.
2. After a duly noticed City Council public hearing on January 19, 2021 to
receive testimony and protest regarding the proposed Residential Trash Collection Rate,
the City Council finds that no such majority protest was received and that the rates shall be
adjusted to $23.14 per month effective February 1, 2021
3. The Residential Trash Collection Rate 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:
a. March to March Consumer Price Index for All Urban Consumers in Los
Angeles-Long Beach-Anaheim established by the U. S. Bureau of Labor Statistics
("CPIU"), weighted 76%; and
b. The landfill disposal fee—weighted 16%; and
C. The hauler's cost of Compressed Natural Gas (CNG) fuel, weighted 8%.
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4. The Residential Trash Collection Rate will be adjusted annually
commencing July 1, 2021 pursuant to the previous March CPIU, and continuing each July
1, including July 1, 2025. Notice of any adjustment to the Residential Trash Collection
Rate shall be provided by way of a notice in the monthly Municipal Services Bill at least
thirty (30) days before the effective date of the Rate adjustment.
PASSED AND ADOPTED by the City Council of the City of Huntington
Beach at a regular meeting thereof held on the 19th day of January ,
2021.
Mayor
WED A APPROVED: INITI ED A OVE
City Manager Director of Pu is orks
APPROVFq AS TO FORM:
U
Ts- City Attoidiey
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Res. No. 2021-05
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU, 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 January 19, 2021 by the following vote:
AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, Delgleize
NOES: None
ABSENT: None
RECUSE: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California