Legislation Details

File #: HIST-2877    Version: 1 Subject:
Type: Historical Status: Public Hearing
In control: City Council Meeting Agenda
On agenda: 6/26/2006 Final action: 6/26/2006
Title: Public Hearing Considering Adoption of a Resolution Establishing and Levying a Refuse Rate Schedule effective on July 1, 2006 and Rescinding Resolution No. 2005-R047 that Established the Existing Refuse Rate Schedule.
Attachments: 1. PH-4__2006_PW_SANITATION_RATE INCREASE 10%.doc, 2. PH-4 Refuse Rate.pdf
City of Culver City, California City Council Agenda Item Report RECOMMENDATION: Staff recommends the City Council conduct a public hearing and adopt a Resolution establishing and levying a 10% increase in residential refuse fees, and a 6% increase in drop-body refuse fees and commercial refuse fees beginning July 1, 2006. PROCEDURE Mayor: Announce the public hearing is OPEN and accept comments from the public City Engineer: Present the City Engineer's Report and explain method of assessment for the annual levy. Mayor and Council: Declare the Public Hearing CLOSED. Mayor and Council: Discussion. Mayor and Council: By Motion, adopt the Resolution. Meeting Date: 06/26/2006 Item Number: PH-4 AGENDA ITEM: Public Hearing Considering Adoption of a Resolution Establishing and Levying a Refuse Rate Schedule effective on July 1, 2006 and Rescinding Resolution No. 2005-R047 that Established the Existing Refuse Rate Schedule. Contact Person/Dept.: Sam Chandler Phone Number: (310) 253-6402 Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X] Public Hearing: [X] Action Item: [] Attachments: [X] Public Notification: Legal: The Resolution of Intention was posted on the City’s official bulletin board on April 27 and June 15, 2006 and published in the April 27 and June 15, 2006 issues of Culver City News. Non-Legal: First Class Postcards were mailed to the property owners on April 27 and June 15, 2006. Master Notification List on April 27 and June 15, 2006. Department Approval: Charles D. Herbertson 6/15/06 CAO Approval: Jerry B. Fulwood (06/21/2006) City Controller Approval: Marlee Chang (06/21/2006)City of Culver City, California City Council Agenda Item Report BACKGROUND: Sanitation Services Directly Supported by Fees The City of Culver City operates an exclusive residential and commercial refuse collection and disposal service as a municipal enterprise. The Sanitation Division (Sanitation) operates solely on revenues generated from three major sources: (1) the provision of solid waste transfer and collection services to businesses and residents, (2) grants, and (3) the sale of recyclable material. These revenues cover the costs for refuse collection, disposal, recycling programs, and public outreach. Sanitation operations are 100% supported by its enterprise fund revenues. The division does not receive other funds or tax contributions. Sanitation Services Indirectly Supported By Fees In addition to providing revenue to cover the cost of routine Sanitation operations, refuse fees cover the cost of the following additional services:  An annual La Ballona Creek Cleanup Event at a cost of approximately $8,500.  An On-Call bulky item pickup program that provides up to two annual pickups for residential customers for a cost of approximately $60,000.  City-wide street sweeping for an annual cost of $220,000.  Pedestrian container and all bus stop container collection services for an annual cost of approximately $94,000.  Removal of illegally dumped bulky items in the public right-of-way at an annual cost of $20,000.  Removal of illegally dumped hazardous waste at an annual cost of $10,000. Sanitation Payments to the City General Fund and Equipment Fund In Fiscal Year 2006/2007, the Sanitation Enterprise Fund will contribute $1,133,111 (Administrative Charges) to the City’s General Fund to offset the cost of administrative services rendered to Sanitation by other City Departments.City of Culver City, California City Council Agenda Item Report Additionally, the Sanitation Fund pays $78,000 annually to the General Fund as a street usage fee. The Sanitation Enterprise Fund continues to pay principal and 7% interest in the aggregate amount of $164,000 annually on a loan of $2 million from the City’s General Fund and an additional loan of $841,000 from the Equipment Replacement Fund. As of the beginning of FY 06/07 the remaining balance on these loans are approximately $776,000 and $454,000 respectively. These annual payments established by the City Controller will end in 2018. As of the end of FY 2005/2006 the Sanitation Enterprise Fund is expected to have a negative cash balance of approximately $1,300,000. This represents a considerable improvement from the negative cash balance at the end of FY 2004/2005 which was $2,304,000. Public Notification Pursuant to City Council direction, a public notice of this item was published in the April 27, June 15 and 22, 2006 issues of Culver City News. In addition to publishing a notice, on April 27 and June 22, 2006 the Public Works Department mailed 26,771 notices to all property owners and business customers in the City, advising them of tonight’s discussion and the proposed fee increases. DISCUSSION: The City Council establishes Refuse Fees to ensure that revenues cover the costs of services provided. During the Fiscal Year 2006/2007 budget preparation process, staff projected costs will increase by approximately $696,439 due to significant increases in fuel, equipment replacement and landfill disposal costs. These increased costs are based on a maintenance-of-effort budget projection. The following table details the increased costs: Account Description Adopted Budget Fiscal Year 2005-2006 Maintenance of Effort Budget Fiscal Year 2006-2007 Difference Percent Increase Personnel Services $4,052,862 $4,120,351 $67,489 1.7% Utilities $15,000 $16,600 $1,600 10.7% Liability Reserve Charge $105,118 $149,537 $44,419 42.3% Other Contractual Services $272,087 $291,700 $10,613 3.9%City of Culver City, California City Council Agenda Item Report Capital Outlay – Building – Stormwater Controls $-0- $87,000 $87,000 100% Amortization of Equipment $536,967 $654,986 $118,019 21.9% Garage Expenses $1,343,629 $1,576,884 $229,554 17.1% Departmental Special Equipment $11,479 $13,500 $1,021 8.8% Refuse Disposal - Trash $1,404,168 $1,600,000 $195,832 13.9% Less Other Line Item Decreases ($128,016) Total Increase From Previous Fiscal Year: $696,439 Proposed Rate Schedule Increase During Fiscal Year 2005/2006, the City Council adopted a resolution establishing the current refuse rates to balance revenues with the cost of service. However, the cost to the Sanitation Enterprise Fund is projected to increase significantly for Fiscal Year 2006/2007 from the previous fiscal year. As a result, staff believes that it is necessary to reevaluate the Refuse Rate Schedule in order to match revenues with costs. Taking into account refuse collection rates of other local municipalities and private solid waste companies that service local municipalities, staff determined that a 6% fee increase for commercial and a 10% increase for residential service will bring rates in line with the market while covering Sanitation’s expenses. The following is a proposed fee schedule: FY 2006/2007 Culver City Proposed Sanitation Service Current Fee Fees Residential Cans (monthly) $22.17 $24.39 Commercial Cans (monthly) $21.69 $24.39 Commercial Can Recycle $10.85 $11.50 2-CY Scheduled Trash $89.46 $94.83City of Culver City, California City Council Agenda Item Report 2-CY Scheduled Greenwaste $34.00 $36.04 2-CY Extra Bin Pick-Up $17.43 $18.48 On-call 2-CY Trash $25.19 $26.70 On-call 2-CY Greenwaste $7.56 $8.01 3-CY Scheduled Trash $109.89 $116.48 3-CY Scheduled Greenwaste $35.89 $38.04 3-CY Extra Bin Pick-Up $20.74 $21.98 On-call 3-CY Trash $37.80 $40.07 On-call 3-CY Greenwaste $8.21 $8.70 Re-spot 2, 3 cu.yd. $-0- $8.01 Re-spot 8, 10, 40, cu.yd. $-0- $35.00 Temp Bin Rental *$40.00 $42.40 Lock Set $7.56 $8.01 Temp Bin Delivery/Removal $7.56 $8.01 Bulk Pickup Basic/Illegal $32.67 $35.95 Bulk Pickup > 3 cu.yd. each $16.34 $17.97 Bin Pull-Out $24.95 $26.45 Temp Bin Pull-Out $5.51 $5.84 Drop Body/Compactor Empty or removal $133.90 $141.93 Trash Disposal < 11 Tons $66.69 $70.69 Trash Disposal >11 Tons $133.39 $141.39 Asphalt Disposal >11 tons $-0- $80.80 Asphalt Disposal < 11 tons $38.11 $40.40 Metal Disposal > 11 tons $-0- $19.56 Metal Disposal < 11 tons $9.23 $9.78 Inert Disposal > 11 tons $-0- $90.64 Inert Disposal < 11 tons $42.75 $45.32 Clean Wood > 11 tons $-0- $74.24 Clean Wood < 11 tons $35.02 $37.12 Contaminated Wd > 11 tons $-0- $90.64 Contaminated Wd < 11 tons $42.75 $45.32 Greenwaste > 11 tons $-0- $90.64 Greenwaste < 11 tons $42.75 $45.32 Drop Body Rental *$130.00 $137.80 Rate Schedule Comparison to Other Cities Staff surveyed local municipalities who provide solid waste services to their communities. The survey revealed that Culver City’s proposed rate schedule is in the median range of what other cities charge for similar services. Based on this fact, City of Culver City, California City Council Agenda Item Report Sanitation Enterprise Fund revenues can be realigned with projected costs by increasing the commercial and residential refuse rates as proposed and still remain competitive when compared to the surrounding market. City Residential Service Commercial Service (2 cubic- yard) Culver City (Proposed) $24.39 $94.83 Santa Monica $31.00 $114.00 Beverly Hills $34.00 $192.00 Burbank** $13.00 $147.10 *Los Angeles $11.00 $95.00*** Glendale** $14.41 $69.70 Pasadena $29.30 $98.92 (3 yd only) * The City of Los Angeles (LA) was included in the rate comparison even though they are subsidized by their General Fund. LA charges $11 per month to their residents for refuse collection. The $11 fee only pays for equipment maintenance and container cost; all other costs associated with refuse collection are paid by their General Fund. LA staff submitted to their Budget and Finance Department a full-cost recovery analysis for their services. The report projects that the residential refuse rates would have to be increased to $47 per month by the year 2008 to pay the cost of service. LA, Pasadena, Santa Monica and Glendale compete against the private sector. ** Glendale and Burbank have City operated disposal sites and do not include the cost of disposal in the rates. *** Published rates from private haulers include a fuel surcharge and applicable taxes. FISCAL ANALYSIS: Sanitation staff completed a comprehensive rate analysis of Sanitation services based on the projected operating budget for Fiscal Year 2006/2007. The rate analysis shows that the residential, commercial and drop-body fees need to be City of Culver City, California City Council Agenda Item Report increased to match revenues with cost. The proposed rate schedule will balance the Sanitation operating budget by generating approximately $10,513,573 in revenue for Fiscal Year 2006-2007. Given this, staff is recommending adopting the proposed fee increase effective July 1, 2006. While proposed expenditures are slightly higher at $10,814,218, the revenue from green waste transfer fees paid by Los Angeles was not included because of a lack of history. Staff is taking a conservative approach to this new source of revenue estimated to be more than $275,000 annually and believes rates proposed are sufficient to sustain ongoing operations. Should the additional revenue be realized, then the sanitation operation can accelerate debt payments and build a rate levelization reserve fund to begin to offset known increases to the disposal costs that are likely to more than double in the next 5 years to at least $60 per ton. The Refuse Fee Schedule will be revisited annually to determine the impact of the disposal costs and whether further rate increases are necessary. ATTACHMENTS:  Engineer’s Report  Resolution  Notification Postcards  Sanitation Rate Analysis MOTION: That the City Council: Adopt a Resolution to increase the Residential Rate Schedule by 10%, and increase the Commercial and Drop-Body Refuse Rate Schedule by 6% effective July 1, 2006, and rescind Resolution 2005-R047 that established refuse rates for Fiscal Year 2005-2006. 06/26/06 Consideration of Adoption of a Resolution of the City Council Establishing and Levying a Refuse Rate Schedule effective on July 1 2006 and Rescinding Resolution No 2005 R047 that Established the Existing Refuse Rate Schedule MEETING DATE AGENDA ITEM ATTACHMENTS Paqes|109| City Engineer's Report 1-6|109| Resolution 7-14|109| Notification Postcards 15-16|109| Sanitation Rate Analysis 17CAW?, C T' PUBLIC WORKS DEPARTMENT 9770 CULVER BOULEVARD CULVER CITY CALIFORNIA 90232 0507 (310) 253 5600 • FAX (310) 253 5626 HARLES D HERBERTSON PE LS Public Works Director and City Engineer June 26, 2006 TO The Honorable Mayor and Members of the City Council FROM Charles D Herbertson, Public Works Director and City Engineer CITY ENGINEER'S REPORT FOR RESIDENTIAL SANITATION USER SERVICE CHARGES FOR FISCAL YEAR 2006-07 1 0 Introduction The managers of the Sanitation Division are responsible for the residential solid waste infrastructure, transportation, processing and disposal of all refuse and recyclables in the City of Culver City and must acquire adequate funds to finance and operate facilities and capital equipment, along with implementing appropriate pricing structures to ensure the self-sufficiency of the public utility The financing vehicle that is used by the utility and the timing of the financing are crucial in ensuring that residential sanitation customers are appropriately paying for services and facilities that they need and not inappropriately financing or subsidizing facilities for other customer classes Sanitation has an effective financial plan to achieve full cost recovery through appropriate customer fees that fund the beneficial public purpose and benefits received from the collection of residential refuse and recyclables by the municipal service 2 0 Sanitation Services Directly Supported by Fees The City of Culver City operates an exclusive residential and commercial refuse collection and disposal service as a municipal service enterprise The Sanitation Division (Sanitation) operates solely on revenues generated from the provision of solid waste transfer and collection services to businesses and residents, grants, and the sale of recyclable material Residential solid waste collection, processing and disposal operations are funded by an annual assessment levy ($ 2,789,161) plus revenue from sales of recyclables ($235,755) These revenues cover the allocated costs for residential refuse collection, disposal, recycling programs and public notices, information and outreach ($3 024 916) All residential sanitation operations are 100% supported by enterprise fund revenues and do not receive other funds or tax contributions ICulver City — Residential Sanitation Division 2006/2007 City Engineer s Report 6/15/2006 2 of 6 3 0 Sanitation Services Indirectly Supported By Fees In addition to providing revenue to cover the cost of routine Sanitation operations refuse fees cover the allocated cost of the following additional services • An annual La Ballona Creek Cleanup Event at a cost of approximately $2,210 • An On-Call bulky item pickup program that provides up to two annual pickups for residential customers for a cost of approximately $60,000 • Citywide street sweeping for an annual cost of $57,200 • Pedestrian container and all bus stop container collection services for an annual cost of approximately $24,400 • Removal of illegally dumped bulky items in the public right-of-way for an annual cost of $5,300 • Removal of illegally dumped hazardous waste for an annual cost of $2 650 The Residential Sanitation User Fee funds will contribute $294,609 to the City's General Fund to offset the cost of services rendered to Residential Sanitation by other City Departments in Fiscal Year 2006/2007 4 0 Residential Sanitation Payments to the City General Fund The Residential Sanitation Enterprise fund continues to pay an allocated payment for two loans (one from the General Fund and one from the Equipment Fund) totalling $3 million This payment includes and interest charge of 7% and is in the amount of $43 397 annually This annual payment established by the City Controller will end in 2018 Residential Sanitation also pays rent for City property (street usage fee) in the amount of $20,687 per year 5 0 Refuse Rate Adiustment Fiscal Year 2004/2005 During Fiscal Year 2005/2006 Residential Sanitation staff worked with the City Controller to complete a comprehensive revenue and expenditure estimate analysis of Residential Sanitation services based on the projected operating budget for Fiscal Year 2006/2007 The analysis demonstrated that the residential fees would need to be increased by 10% to balance revenues to cost 2.Culver City — Residential Sanitation Division 2006/2007 City Engineer s Report 6/15/2006 3 of 6 Staff has proposed the recommended increase to the City Council and has submitted a resolution implementing the proposed rate schedule for City Council action 6 0 Public Notification Pursuant to City Council direction, a public notice of this item was published in the April 27 June 15 and 22 2006 issues of Culver City News In addition to publishing a notice on April 27 June 15 and 22 2006 the Public Works Department mailed 26,771 notices to all property owners and business customers in the City advising them of tonight s discussion and the proposed fee increases 7 0 Proposed Rate Schedule Increase During Fiscal Year 2005/2006, the City Council adopted a resolution establishing the current refuse rates to balance revenues with the cost of service However, the cost to the Sanitation Enterprise fund is projected to increase significantly for Fiscal Year 2006/2007 from the previous fiscal year As a result, staff believes that it is necessary to reevaluate the Refuse Rate Schedule in order to match revenues with costs Residential refuse collection fees will be established for the types of service defined in this section as follows a Residential, single-family This is service provided on a one- time-per-week schedule to single family residents Customers receiving this service deposit their refuse in a City issued 64-gallon refuse container Customers place refuse containers at curbside or along alleys on scheduled collection days Fees are included on the annual property tax statement b Residential, multi-family This is service provided on a one-time-per week schedule to residents of multi unit residential buildings that do not subscribe to scheduled commercial bin service Residential buildings with four or more dwelling units must subscribe to commercial bin service unless specially exempted by the Sanitation Manager, or his designee Customers receiving this service deposit their refuse in a City issued, 64-gallon refuse container Customers place refuse containers at curbside or along alleys on scheduled collection days Fees are included on the annual property tax statement C 3Culver City — Residential Sanitation Division 2006/2007 City Engineers Report 6/15/2006 4 of 6 c Special, bulk pick-up This non-scheduled two times a year service provided to residential customers having more than 64 gallons of refuse to be collected in a single week and residential customers having heavy, bulky or large items (such as a major household appliance) to be collected The cost of this service is included as a component in the monthly fee The current rates for each service defined above are as follows a Residential, single-family $22 17 per dwelling unit per month Residential, multi-family $22 17 per dwelling unit per month The new rates for FY 2006-07 for each service defined above will be as follows a Residential, single-family $24 39 per dwelling unit per month Residential, multi-family $24 39 per dwelling unit per month Taking into account refuse collection rates of other local municipalities and private solid waste companies that service local municipalities, staff determined that a 10% fee increase for residential service will bring rates in line with the market while covering Residential Sanitation expenses 8 0 Rate Schedule Comparison to Other Cities Staff surveyed local municipalities who provide solid waste services to their communities The survey revealed that Culver City's proposed rate scheduled is in the median range of what other cities charge for similar services Based on this fact Sanitation Enterprise Fund revenues can be realigned with projected costs by increasing the commercial and residential refuse rates as proposed and still remain competitive when compared to the surrounding market Residential City Service Culver City (Proposed) $2439 Santa Monica $31 00 Beverly Hills $34 00 Burbank** $1300 *Los Angeles $11 00 Glendale** $14 41Culver City — Residential Sanitation Division 2006/2007 City Engineer s Report 6/15/2006 5 of 6 Pasadena $29 30 * The City of Los Angeles (LA) was included in the rate comparison even though they are subsidized by their General Fund LA charges $11 per month to their residents for residential refuse collection The $11 fee only pays for equipment maintenance and container cost, all other costs associated with refuse collection are paid by their General Fund LA staff submitted to their Budget and Finance Department a full-cost recovery analysis for their services The report projects that the residential refuse rates would have to be increased to $47 per month by the year 2008 to pay the cost of service ** Glendale and Burbank have City operated disposal sites and do not include the cost of disposal in the rates 9 0 Calculation of Annual Revenue Requirements Sanitation staff completed a comprehensive rate analysis of Residential Sanitation services based on the projected operating budget for Fiscal Year 2006/2007 The rate analysis shows that the residential fees need to be increased by 10% to match revenues with cost The proposed rate schedule will balance the Sanitation operating budget by generating approximately $2 789 161 in revenue for Fiscal Year 2006-2007 that combined with the recycling revenue of $235 755 results in a total revenue stream of $3 024 916 Given this staff is recommending adopting the proposed 10% fee increase effective July 1 2006 The Residential Refuse Fee Schedule will be revisited annually to determine the impact of the disposal costs and whether further rate adjustments are necessary The City Council establishes Refuse Fees to ensure that revenues cover the costs of services provided During the Fiscal Year 2006-2007 budget preparation process, staff projected that costs will increase by approximately $250,933 due to significant increases in operations/fuel, equipment replacement and landfill costs These increased costs are based on maintenance of effort budget projection The following table details the increased costs Adopted Maintenance of Effort Budget Fiscal Year 2005 Budget Fiscal Year Percent Account Description 2006 2006 2007 Difference Increase Personnel Services $739 060 $752 215 $13 155 1 7% Operations $515 925 $675 827 $159 902 31 0% Liability Reserve Charge $18 972 $27 228 $8 256 42 3% 6Culver City — Residential Sanitation Division 2006/2007 City Engineer s Report 6/15/2006 6 of 6 Transfer Station Costs $272 087 $291700 $19613 7 2 /0 Refuse Disposal Trash $365 993 $416000 $50007 137% Less other deductions ($1 237) Total Increase From Previous Fiscal Year S250,933 9 0% As noted above, the Sanitation Division is contemplating seeking City Council approval for a five year Residential rate-stabilization program following confirmation of probable significant cost increases in the gate fees at the primary disposal site used by City of Culver City Puente Hills Landfill The Sanitation Division will identify the causes of higher fees in the regional solid waste systems and analyze the justifications for annual revenue adjustments until Fiscal Year 2012/13 In Fiscal Year 2006/07 the refuse disposal costs are up 13 7% and similar increases are predicted until 2013 to pay for the change from local (Puente) disposal to a rail haul system Other sub-streams of the waste system will likely track with the higher costs resulting in even higher across the board disposal and processing costs At current rates every $100,000 increase in costs will require an $ 87 increase in residential rates Recommendations In summary, Staff makes the following recommendations • Increase the current Sanitation Division billing formulas by 10 percent to achieve full cost recovery for the proposed FY 2006-07 programs • Adopt a resolution that allows a 10 percent increase to the current Sanitation Division residential billing formulas for fiscal year 2006/07 in order to meet the revenue requirements of the Sanitation Division C.RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA ESTABLISHING AND LEVYING A REFUSE COLLECTION FEE, AND RESCINDING RESOLUTION NO 2006-xxxxxx WHEREAS Section 5 01 070 of the Culver City Municipal Code authorizes the City Council to establish, by resolution refuse collection fees NOW, THEREFORE, the City Council of the City of Culver City, DOES HEREBY RESOLVE as follows|109| Refuse collection fees shall be established for the types of service defined in this section a Residential, single This is service provided on a one-time- per-week schedule to single family residents Customers receiving this service deposit their refuse in a City issued, 64-gallon refuse container Customers place refuse containers at curbside or along alleys on scheduled collection days Fees are included on the annual property tax statement b Residential, multi This is service provided on a one-time-per week schedule to residents of multi unit residential buildings that do not subscribe to scheduled commercial bin service Residential buildings with four or more dwelling units must subscribe to commercial bin service unless specially exempted by the Sanitation Manager or his designee Customers receiving this service deposit their refuse in a City issued 64-gallon refuse container Customers place refuse containers at curbside or along alleys on scheduled collection days Fees are included on the annual property tax statement c Special, bulk pick-up This non-scheduled service provided to residential customers having more than 64 gallons of refuse to be collected in I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (jam) 1a single week, and residential commercial or industrial customers having heavy, bulky or large items (such as a major household appliance) to be collected d Commercial can This is service provided on a one-time per week basis to commercial or industrial establishments that generate small volumes of refuse each week, and that are unable to use two or three cubic yard refuse bins because of space limitations Fees are included on the annual property tax statement unless a tenant established a commercial refuse services agreement with the City e Commercial bin This is service provided on a scheduled or on-call basis to residential, commercial or industrial customers who place refuse in refuse bins, and greenwaste in greenwaste bins with a capacity of two or three cubic yards f Temporary bin This is service provided on a temporary on-call basis to residential, commercial or industrial customers who temporary require a two or three cubic yard bin Customers are billed for delivery and retrieval each pick-up, and for each full month rental g Special bin pick-up This is service provided on an on-call basis to commercial bin customers in excess of the frequency specified in the service agreement h Extra bin pick-up This is service provided to commercial and temporary bin customers who require a bin to be emptied more than one time during a single collection stop The customer is responsible for placing refuse into the bin for all extra pick-ups i Bin pull-out This is service provided on a scheduled and/or on-call basis to commercial and temporary bin customers who store bins in|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B (jam) -2-locations more than 25 linear feet from a point where the collection vehicle can safely pick up and empty the bin|109| Lock set This is service provided to commercial and temporary bin customers who require locking devices on refuse bins The locking devices and locks are provided by the City k Industrial This is service provided on a scheduled or on-call basis to public, commercial or industrial enterprises that generate large volumes of solid waste This service includes providing the customer an eight to fifty cubic yard capacity debris box or a customer-supplied compactor container A City-supplied debris box must be picked up and emptied at least once every fourteen calendar day period I Transfer and disposal This service includes dumping solid waste at the City refuse transfer station and transporting it to an authorized disposal or salvage site Customers who deliver refuse to the refuse transfer/recycling station and industrial customers pay for this service on a per-ton basis Transfer and disposal costs for other customers are included in the collection fees m Scooter collection This service includes emptying refuse receptacles placed in public places for use by pedestrians n Waste reduction and recycling incentive This service is provided to commercial or industrial customers who separate recyclable or salvageable materials from mixed refuse When the City Sanitation Division is able to divert solid wastes from sanitary landfills, the actual disposal cost may be significantly less The cost savings may be passed through to customers in the form of reduced rates|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (jam) -3- 92 The rates for each service defined in Section 1 shall be as follows a Residential, single $24 39 per dwelling unit per month b Residential, multi $24 39 per dwelling unit per month c Special, bulk pick-up $35 94 minimum charge Charges may be increased in $17 97 increments based on volume, weight or shape The City will provide a binding estimate before providing the service d Commercial can (trash) $24 39 per billing unit One billing unit is the monthly charge for collection of up to 1/2 cubic yard of refuse each week The service agreement shall set forth the number of billing units for each commercial can customer Commercial can (recycle) $11 50 per billing unit One billing unit is the monthly charge for collection of up to /2 cubic yard of mixed recyclables every other week The service agreement shall set forth the number of billing units for each commercial can customer e Commercial bin 1) 2 cubic yards Refuse $94 83 per month per bin for one weekly collection Greenwaste $36 04 per month per bin for one weekly collection Additional weekly collections will be billed based on multiples of this fee 2) 3 cubic yards Refuse $116 48 per month per bin for one weekly collection Greenwaste $38 04 per month per bin for one weekly collection Additional weekly collections will be billed based on multiples of this fee f Temporary bins and on-call service 1) Pull out $584 2) Delivery/removal/re-spot $8 01|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 P0 (jam) -4-3) Collection on-call Two (2) cubic yard bin Refuse $26 70/each collection 4) Collection on call Two (2) cubic yard bin Greenwaste, $8 01/each collection 5) Collection, on call 3 cubic yard bin Refuse, $40 07/each collection 6) Collectionon-call 3 cubic yard bin Greenwaste, $8 70/each collection 7) Bin Rental Fee A prorated charge of $42 20 per month will be assessed to a customer using a temporary bin g Special/reload bin pick up 1) 2 cubic yard $26 70 per event 2) 3 cubic yard $4007 per event h i Bin pull out $26 45 per month, per bin j Lock set $8 01 per month per lock set k Industrial 1) Container re-spot $35 00|109| Container empty or removal $141 39 per event (plus transfer and disposal tonnage fee with transfer and disposal fee being based on a minimum charge for 2 tons) I Transfer and Disposal 1) Trash - first eleven (11) tons $7069 each ton measured to the nearest 100 th of a ton 2) Trash - over eleven (11) tons $141 39 each ton, measured to the nearest 100 th of a ton I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (jam) -5- 1 I3) Asphalt - $40 40 each ton measured to the nearest 100th of a ton 4) Asphalt — over eleven (11) tons $8080 each ton measured to the nearest 100th of a ton 5) Metal - $9 78 each ton, measured to the nearest 100 th of a ton 6) Metal - over eleven (11) tons $1956 each ton measured to the nearest 100 th of a ton 7) Inert -$45 32 each ton measured to the nearest 100 th of a ton 8) Inert - over eleven (11) tons $9064 each ton measured to the nearest 100 th of a ton 9) Clean wood - $37 12 each ton measured to the nearest 100th of a ton 10) Clean wood - over eleven (11) tons $7424 each ton measured to the nearest 100 th of a ton 11) Contaminated wood - $45 32 each ton, measured to the nearest 100 th of a ton 12) Contaminated wood - over eleven (11) tons $90 64 each ton, measured to the nearest 100th of a ton 13) Greenwaste - $45 32 each ton measured to the nearest 100th of a ton 14) Greenwaste - over eleven (11) tons $90 64 each ton, measured to the nearest 100th of a ton 9) Drop-body Rental Fee A prorated charge of $137 80 per month will be assessed to a customer using a drop-body3 Waste reduction and recycling incentive The Sanitation Manager shall establish incentive rates for recyclable materials based on current market conditions Inventive rates may be applied to the following services a Commercial bin b Temporary bin c Special bin and bulk pick up d Extra bin pick up e Transfer and disposal|109| The City Council hereby directs the creation of the Refuse Service Lien Master File List Computer Floppy Disk and orders the annual levy of Refuse Service Fees on each parcel of property as shown and set forth in the computer floppy disk|109| The Los Angeles County Auditory-Controller shall enter on the County Assessment Roll the amount of the fee on each parcel and the fee shall then be collected at the same time and in the same manner as County Property Taxes are collected After collection, the net amount of the fee shall be paid to the City Treasurer of Culver City and the money shall be placed in the Refuse Disposal Enterprise Fund|109| The City Clerk is hereby ordered and directed to file a copy of said computer floppy disk, together with a certified copy of the Resolution with the Los Angeles County Auditor-Controller|109| A certified copy of the Refuse Service Fee Lien Master File Listing Computer Floppy Disk shall be kept on file under control of the City Clerk at all times and shall be available for public inspection|109| The Refuse Collection Fees set forth in Section 2 that have not been billed through the Refuse Service Fee Lien Master File Listing Computer Floppy Disk shall be collected pursuant to billing procedures established by the City Treasurer|10 9| Resolution No 2006-xxxx is hereby rescinded APPROVED and ADOPTED this day of 2006 -7- 1 5 I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (jam)ALBERT VERA MAYOR City of Culver City California ATTEST APPROVED AS TO FORM CHRISTOPHER ARMENTA City Clerk CAROL A SCHWAB, City Attorney RRefuse Rate 2005 A05 00328 -8- Pi|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (jam)PUBLIC WORKS DEPARTMENT CITY OF CULVER CITY PO Box 507 9770 CULVER BOULEVARD CULVER CITY CA 90232 0507 NOTIFICATION OF IMPORTANT CITY COUNCIL AGENDA ITEM Public Heanng Assessment levy of refuse Rate Schedule for FY 06 07 PUBLIC WORKS DEPARTMENT CITY OF CULVER CITY PO Box 507 9770 CULVER BOULEVARD CULVER CITY CA 90232 0507 NOTIFICATION OF IMPORTANT CITY COUNCIL AGENDA ITEM Public Heanng Assessment levy of refuse Rate Schedule for FY 06 07 PUBLIC WORKS DEPARTMENT PUBLIC WORKS DEPARTMENT CITY OF CULVER CITY CITY OF CULVER CITY PO Box 507 PO Box 507 9770 CULVER BOULEVARD 9770 CULVER BOULEVARD CULVER CITY CA 90232 0507 CULVER CITY CA 90232 0507 NOTIFICATION OF IMPORTANT CITY COUNCIL AGENDA ITEM Public Heanng Assessment levy of refuse Rate Schedule for FY 06-07 NOTIFICATION OF IMPORTANT CITY COUNCIL AGENDA ITEM Public Heanng Assessment levy of refuse Rate Schedule for FY 06-07 ONems, C I Cake:, CITY PUBLIC WORKS DEPAR1MENT NOTIFICATION OF IMPORTANT AGENDA ITEM AT A FUTURE COUNCIL MEETING The City Council will consider the following agenda item at their meeting of June 26 2006 Time 7 00 pm The City Council will conduct a Public Hearing regarding the Assessment Levy of the proposed Refuse Rate Schedule for Fiscal Year 2006 2007 For more information contact Sam Chandler Interim Sanitation Manager 310 253 6402 Location City Hall Mike Balkman Council Chambers 9770 Culver Boulevard Culver City CA 90232 City Council/Agency meetings can be viewed live on Channel 35 by most Comcast subscribers Visit the Culver City Website at www culvercity org or send your ques bons or comments to the City at chief administration@culvercity org To view the Council meetings on line please visit http //www culvercitv orgL webcast To add your name to the City s email list to receive agenda reports and news of City issues please call (310) 253 6000 or complete an online request at http //www culvercity org/citygov/ public notification html Caetteh CITY PUBLIC WORKS DEPARTMENT NOTIFICATION OF IMPORTANT AGENDA ITEM AT A FUTURE COUNCIL MEETING The City Council will consider the following agenda item at their meeting of June 26 2006 Time 7 00 pm The City Council will conduct a Public Hearing regarding the Assessment Levy of the proposed Refuse Rate Schedule for Fiscal Year 2006-2007 For more information contact Sam Chandler Interim Sanitation Manager 310 253 6402 Location City Hall Mike Balkman Council Chambers 9770 Culver Boulevard Culver City CA 90232 City Council/Agency meetings can be viewed live on Channel 35 by most Comcast subscribers Visit the Culver City Website at www culvercity org or send your ques tions or comments to the City at chief administrationgculvercity org To view the Council meetings on line please visit http //www culvercity org/ webcast To add your name to the City s email list to receive agenda reports and news of City issues please call (310) 253 6000 or complete an online request at http //www culvercity org/citygov/ public notification html CalvelL CITY PUBLIC WORKS DEPARTMENT NOTIFICATION OF IMPORTANT AGENDA ITEM AT A FUTURE COUNCIL MEETING The City Council will consider the following agenda item at their meeting of June 26, 2006 Time 7 00 pm The City Council will conduct a Public Hearing regarding the Assessment Levy of the proposed Refuse Rate Schedule for Fiscal Year 2006 2007 For more information contact Sam Chandler Interim Sanitation Manager 310 253 6402 Location City Hall Mike Ballcman Council Chambers 9770 Culver Boulevard Culver City CA 90232 City Council/Agency meetings can be viewed live on Channel 35 by most Comcast subscribers Visit the Culver City Website at www culvercity org or send your ques tions or comments to the City at chief administration@culvercity org To view the Council meetings on line please visit http //www culvercity org/ webcast To add your name to the City s email list to receive agenda reports and news of City issues please call (310) 253 6000 or complete an online request at http //www culvercity org/citygov/ public notification html ettivelL CITY PUBLIC WORKS DEPARTMENT NOTIFICATION OF IMPORTANT AGENDA ITEM AT A FUTURE COUNCIL MEETING The City Council will consider the following agenda item at their meeting of June 26 2006 Time 7 00 pm The City Council will conduct a Public Hearing regarding the Assessment Levy of the proposed Refuse Rate Schedule for Fiscal Year 2006 2007 For more information contact Sam Chandler Interim Sanitation Manager 310 253 6402 Location City Hall Mike Balkman Council Chambers 9770 Culver Boulevard Culver City CA 90232 City Council/Agency meetings can be viewed live on Channel 35 by most Comcast subscribers Visit the Culver City Website at www culvercity org or send your ques tions or comments to the City at chief administration@culvercity org To view the Council meetings on line please visit http //www culvercity orgi webcast To add your name to the City s email list to receive agenda reports and news of City issues please call (310) 253 6000 or complete an online request at http //www culvercity org/citygov/ public notification htmlBudget FY 04/05 Sanitation Enterprise Fund Five Year Projection Budget 2005/06 Budget 2006/07 Budget 2007/08 Budget 2008/09 Budget 2009/10 Budget 2010/11 Budget 2011/12 Budgetary Format Actual Actual Fee Increase I Fee Increase I Fee Increase I Fee Increase I Fee Increase I Fee Increase Revenue Proposed Commercial Residential and Transfer Station $8 426 595 $9 822 783 $10412 150 $13 015 188 $15 097 618 $15 550 546 $16 017 062 $16 497 574 Expenditures Personnel $3 521 450 $4 052 862 $4120351 351 $4 738 404 $5 164 860 $5 371 454 $5 586 313 $5 809 765 Operations $5 074 493 $5 933 412 $6 371 225 $8 027 744 $9 352 321 $9 632 891 $9 921 878 $10 219 534 Capital Outlay $11 479 $13522 $100500 $800000 $800000 $0 $0 $0 Lease Payments $10 164 $93317 $58513 $37264 $0 $0 $0 $0 Debt Service (to other $100 171 $163629 $163629 $163629 $163629 $163629 $163629 $163629 City Funds) Total expenditures $8 717 757 $10 256 742 $10 814 218 $13 767 040 $15 480 810 $15 167 974 $15 671 819 $16 192 928 Financial Statement Format Revenue $8 426 595 $9 822 783 $10 412 150 $13 015 187 $15 097 617 $16 003 475 $16 963 683 $17 981 504 Expenditures $8 717 757 $10 256 742 $10 814 218 $13 767 040 $15 480 810 $15 167 974 $15 671 819 $16 192 928 Less Debt Service $960 $67900 $56479 $129130 $114459 $83181 $89003 $89003 Principal Less Capital Outlay $11 479 $13522 $100500 $800000 $800000 $0 $0 $0 Expenses $8 705 318 $10 175 320 $10 657 239 $12 837 910 $14 566 351 $15 084 793 $15 582 816 $16 103 925 Excess Appropriation $772 159 $841 685 $924 443 $447 574 $633 622 $1 433 616 $1 478 179 $1 530 290 Total Expenses $7 933 159 $9 333 635 $9 732 796 $12 390 336 $13 932 729 $13651 177 $14 104 637 $14 573 635 Net Profit (Loss) $493 436 $489148 $679354 $624851 $1 164 888 $2 352 298 $2 859 046 $3 407 869 Revenue for FY 06/07 includes a 6% increase in commercial refuse fees and a 10% increase in residential fees Revenue for FY 07 08 includes a 5% PPI (Producer Price Increase) in rates anticipated 100 tpd additional MSW and 100 tpd additional green waste with a 10% increase in recycling tonnage and revenue from once a week collection Personnel Expense FY 07 08 increases by 15% to acquire 5 heavy truck drivers Operations in FY 07 08 includes annual 3% PPI increase 11% increase in fuel costs additional amortization for new fleet veh vehicles tracto/trailers (4160) and higher tip fee costs for additional tonnage and gate fee increase ($670k) Administrative charges up to $65k Revenue FY 08 09 includes $1 68M new commercial tonnage MSW tonnages and C&D income Capital Outlay in FY 07 08/08 09 includes TS upgrades additional roll off equipment and a back up wheel loader banitation Fee Increase Personnel FY 08 09 includes two additional roll off drivers and one CSR ($250) Page 1 of 1 Operations FY 08 09 includes $750K increased tonnage charges $250K tip fee increase $50K fuel and $75 admin fee