City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt a Resolution establishing and levying a 4%
increase in residential, commercial, and drop body refuse fees beginning July 1,
2008 and rescinding Resolution No. 2007-R033.
PROCEDURE:
Mayor:
Announce that this is the time and place for the public hearing to discuss the annual
levy of assessments for the Refuse Rate Schedule for Fiscal Year 2008/2009.
City Clerk:
Announce that notice of this hearing has been given pursuant to the provisions of
Chapter 5.01 of the Culver City Municipal Code and pursuant to the provisions of the
City Council's Resolution 2008-R027, and that the following affidavits are on file in
his office:
1. Affidavit of Publication; and
2. Affidavit of Posting.
Mayor and Council: Motion to receive and file all affidavits.
Meeting Date: 06/09/2008 Item Number: PH-3
AGENDA ITEM: PUBLIC HEARING Adoption of a Resolution of the City Council
Establishing and Levying a Refuse Rate Schedule effective on July 1, 2008 and
Rescinding Resolution No. 2007-R033 that Established the Existing Refuse Rate
Schedule.
Contact Person/Dept.: Damian Skinner Phone Number: (310) 253-6421
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [X] Action Item: [] Attachments: [X]
Public Notification:
First Class Postcards were mailed to property owners on April 24, 2008. An
advertisement for tonight’s meeting was published in the May 1, and May 8, 2008 issues
of Culver City News.
Master E-Mail Notification List (06/04/08).
Department Approval:
Charles D. Herbertson (05/29/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (06/02/08)
Fiscal Impact Review:
Jeff Muir (by M. Noller) (06/04/08)
City Manager Approval:
Jerry B. Fulwood (06/04/08) City of Culver City, California
City Council Agenda Item Report
City Clerk: Announce the number of written protests received, if any,
and announce that copies of all such protests have been
delivered to the City Council OR, summarize the contents
thereof.
Mayor: Seek a motion declaring the Public Hearing Open
First, ask to hear from those who have filed a written protest.
Next, ask to hear from those in the audience wishing to
speak against the proposed assessments.
Then, ask to hear from anyone who wishes to speak in favor
of the proposed assessments.
Mayor and Council: Seek a Motion declaring the Public Hearing closed.
Mayor and Council: Discussion.
Mayor and Council: By Motion, adopt the Resolution confirming the
assessments.
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 Bureau
(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. These revenues cover the costs for refuse collection, disposal,
recycling programs, and public outreach. Sanitation operations are 100% supported
by its enterprise fund revenues and it 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:
City of Culver City, California
City Council Agenda Item Report
• An annual La Ballona Creek Cleanup Event at a cost of approximately
$2,200.
• An On-Call bulky item pickup program that provides up to two annual pickups
for residential customers for a cost of approximately $97,000.
• Citywide street sweeping for an annual cost of $282,308.
• Pedestrian container and all bus stop container collection services for an
annual cost of approximately $45,990.
• Removal of illegally dumped bulky items in the public right-of-way for an
annual cost of $21,198.
The Sanitation Enterprise fund will contribute $1,263,495 to the City’s General Fund
to offset the cost of services rendered to Sanitation by other City Departments in
Fiscal Year 2008/2009.
Sanitation Payments to the City General Fund
The Sanitation Enterprise fund continues to make payments on a 7% loan of $3
million to the City’s General Fund in the amount of $163,628 annually. The loan
balance will be reduced to $1,149,262 by June 30, 2008, and the annual payment
will end in 2018. Sanitation also pays rent for City property in the amount of $78,000
per year.
Refuse Rate Adjustment Fiscal Year 2007/2008
During Fiscal Year 2006/2007 a comprehensive revenue and expenditure estimate
analysis of Sanitation services based on the projected operating budget for Fiscal
Year 2007/2008 was conducted. The analysis demonstrated that the residential and
commercial fees would need to be increased by 10% to balance revenues to cost.
The City Council concurred with staff’s recommendation and adopted a resolution
implementing the current rate schedule.
Public Notification
Pursuant to City Council direction, a public notice of this item was published in the
May 1 and 8, 2008 issues of Culver City News. In addition to publishing notices, the
Public Works Department mailed postcards to all property owners and business City of Culver City, California
City Council Agenda Item Report
customers in the City, advising them of tonight’s discussion and the proposed fee
increases.
DISCUSSION:
The City establishes Refuse Fees to ensure that revenues cover the costs of
services provided. During the Fiscal Year 2008-2009 budget preparation process,
staff projected that costs will increase by approximately $468,532 due to significant
increases in street sweeping, capital outlay and landfill costs. These increased
costs are based on a maintenance of effort budget projection. The following table
details the increased costs:
Description
Adopted Budget Fiscal
Year 2007-2008
Maintenance of Effort
Budget Fiscal Year 2008-
2009 Difference
Percent
Increase
Personnel Services $4,413,597 $4,432,394 $18,797 0.43%
Administrative Charges $1,214,899 $1,263,495 $48,596 4.00%
Street Sweeping Contract $190,000 $282,308 $92,308 48.58%
Capital Outlay – Building – Axle Scales $79,885 $120,000 $40,115 50.22%
Capital Outlay – Building – Transfer Station Floor $0 $100,000 $100,000 100.00%
Garage Expenses $1,608,666 $1,695,739 $87,073 5.41%
–Trash Disposal* $1,844,357 $1,926,000 $81,643 4.43%
Total Increase From
Previous Fiscal Year: $468,532
* The Los Angeles County owned Puente Hills Landfill is annually increasing their
trash disposal rates by 13% to prepare for its closure in the Year 2013. Once it’s
closed, the landfill will be converted into a waste-to-rail inter modal facility to
transport trash to Eagle Mountain located over 150 miles away.
Proposed Rate Schedule Increase
The cost of Sanitation operations is projected to increase significantly for Fiscal Year
2008/2009 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 4%
fee increase for commercial and residential service will bring rates in line with the
market while covering Sanitation’s expenses. City of Culver City, California
City Council Agenda Item Report
The following is a proposed fee schedule:
Sanitation Service Current Fees
Proposed Fees
FY 08'-09'
Residential Cans (monthly) $26.83 $27.90
Commercial Cans (monthly) $24.39 $25.37
Commercial Can Recycle $11.50 $11.96
2-CY Scheduled Trash $104.31 $108.48
2-CY Scheduled Greenwaste $39.64 $41.23
2-CY Extra Bin Pick-Up $20.33 $21.14
On-call 2-CY Trash $26.70 $27.77
On-call 2-CY Greenwaste $8.01 $8.33
3-CY Scheduled Trash $128.13 $133.26
3-CY Scheduled Greenwaste $41.84 $43.51
3-CY Extra Bin Pick-Up $24.18 $25.15
On-call 3-CY Trash $40.07 $41.67
On-call 3-CY Greenwaste $8.70 $9.05
Re-spot 8, 10, 40, cu.yd. $35.00 $36.40
*Temp Bin Rental $42.40 $44.10
Lock Set $8.81 $9.16
Temp Bin Delivery/Removal $8.01 $8.33
Bulk Pickup Basic/Illegal $39.55 $41.13
Bulk Pickup > 3 cu.yd. each $19.77 $20.56
Bin Pull-Out $29.10 $30.26
Temp Bin Pull-Out $6.42 $6.68
Drop Body/Compactor Empty or removal $156.12 $162.36
Trash Disposal < 11 Tons $77.76 $80.87
Trash Disposal >11 Tons $155.53 $161.75
Asphalt Disposal >11 tons $88.88 $92.44
Asphalt Disposal < 11 tons $44.44 $46.22
Metal Disposal > 11 tons $21.52 $22.38
Metal Disposal < 11 tons $10.76 $11.19
Inert Disposal > 11 tons $99.70 $103.69
Inert Disposal < 11 tons $49.85 $51.84
Clean Wood > 11 tons $81.66 $84.93
Clean Wood < 11 tons $40.83 $42.46
Contaminated Wd > 11 tons $99.70 $103.69
Contaminated Wd < 11 tons $49.85 $51.84
Greenwaste > 11 tons $99.70 $103.69
Greenwaste < 11 tons $49.85 $51.84
*Drop Body Rental $137.80 $143.31
**Area Clean-up - $63.67
***Compactor Housekeeping - $90.00
City of Culver City, California
City Council Agenda Item Report
*The rental fees shown in the table above are the monthly cost to rent a bin;
however, the fees are prorated per day if the customer rents the bin for less than a
month.
Proposed New Area Clean-Up Fee
New to the refuse rate schedule for Fiscal Year 08/09 is an “area clean-up” fee. This
fee will be charged to businesses that require a special clean-up of excess trash
around bins and adjacent public alleyway. Currently, staff receives complaints from
City staff and/or concerned citizens about extra trash surrounding bins at
businesses adjacent to residential areas. Unfortunately, getting cooperation from
the offending business to remove the extra trash is usually difficult, so staff’s only
recourse is to dispatch a clean-up crew to pick-up the excess trash at no additional
cost to the business. With the proposed fee in place, staff will give the offending
business 24-hours’ notice to clean-up the mess. If the trash has not been cleaned-
up after the 24 hours have lapsed, then staff will dispatch a clean-up crew to collect
the excess trash and the business will be assessed the area clean-up fee.
The fee was formulated by analyzing the average employee time required to perform
special clean-ups, and the cost to process, transport and dispose of three cubic
yards of trash. If there are more than three cubic-yards (a standard refuse bin), then
the fee will be increased by $41.67 for each additional bin load.
The purpose of the fee is to deter the negligent behavior that causes the extra trash
around bin enclosures and public alleyways and to recoup the cost for performing
special clean-up activities.
Proposed New Compactor Housekeeping Fee
The compactor housekeeping fee is a variable fee that will be assessed to
businesses that use the Cardiff compactor during times when the compactor and
surrounding area require janitorial attention. Staff received a quote to from Haynes
Building Services to clean the Cardiff compactor enclosure daily. The proposed cost
for the service is $860 per month. Staff will continue to work with the Downtown
Business Association (DBA) to find a sustainable solution to the excess trash and
related problem at the Cardiff compactor enclosure. In the meantime, staff would like
the option to hire a janitorial company to keep the enclosure clear of trash on an as
needed basis. The cost for the service will be evenly distributed among the
restaurants that use the compactor and will not exceed $90 per month for each
restaurant.
City of Culver City, California
City Council Agenda Item Report
Rate Schedule Comparison to Other Cities
Staff surveyed local municipalities that 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
marginally increasing the commercial and residential refuse rates and still remain
competitive when compared to the surrounding market.
City
Proposed
Residential
Service
Proposed
Commercial Service
(2 cubic-yard)
Culver City $27.90 $108.48
Santa Monica $30.29 $143.87
Beverly Hills $55.45 $147.94
Burbank** $21.75 $173.46
Los Angeles $36.00 $95.00***
Pasadena $33.57 $129.94 (3 yd only)
LA, Pasadena, and Santa Monica compete against the private sector for commercial
service.
** Burbank has a City operated disposal site and does not include the cost of
disposal in the rates.
*** Published rates from private haulers do not include street sweeping or other City
related services.
FISCAL ANALYSIS:
Sanitation staff completed a comprehensive rate analysis of Sanitation services
based on the projected operating budget for Fiscal Year 2008/2009. The rate
analysis shows that the residential, commercial and drop-body fees need to be
increased to match revenues with cost. The proposed rate schedule will balance the
Sanitation operating budget by generating approximately $11,623,195 in revenue for
Fiscal Year 2008-2009, which is slightly higher than projected expenditures of
$11,377,886. Should the additional revenue be realized, then the Sanitation
operation can accelerate debt payments and build a rate levelization reserve fund to City of Culver City, California
City Council Agenda Item Report
begin to offset known increases to the disposal costs that are likely to increase by
13% each year for the next 5 years. The Refuse Fee Schedule will be revisited
annually to determine the impact of the disposal costs and whether further rate
increases are necessary. Given this, staff is recommending adopting the proposed
fee increase effective July 1, 2008.
ATTACHMENTS:
1. Resolution
MOTION:
That the City Council:
Adopt a Resolution increasing the Residential and Commercial Rate Schedule by
4%, effective July 1, 2008, and rescinding Resolution 2007-R033 that established
refuse rates for Fiscal Year 2007-2008.
MEETING DATE: 06109/08
AGENDA ITEM: Adoption of a Resolution of the City Council Establishing
and Levying a Refuse Rate Schedule effective on July 1,
2008 and Rescinding Resolution No. 2007-R033 that
Established the Existing Refuse Rate Schedule.
ATTACHMENTS
Pages|109| Refuse Rate Resolution 1-8RESOLUTION NO. 2008-R
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, ESTABLISHING AND
LEVYING A REFUSE COLLECTION FEE, AND
RESCINDING RESOLUTION NO. 2007-R033.
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:
1. 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 Environmental Programs and Operations 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|1010101010101010 10
10|11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28a 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.
9 .
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 ail 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
-2-
I|1010101010101010 10
10|11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28locations more than 25 linear feet from a point where the collection vehicle
can safely pick up and empty the bin.
j. 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. Area clean-up. This service is provided to businesses that
require a special clean-up of excess trash around bins and adjacent public
alleyway. This is special service that will only be implemented when the
excess trash at a business can cause a health and safety problem.
n. Compactor housekeeping. This is a variable fee that will be
assessed to businesses that use the Cardiff compactor during times when
the compactor and surrounding area require janitorial attention. The funds
collected from this fee will be used to hire a janitorial company to remove
excess trash from the Cardiff compactor enclosure and surrounding area on
a daily basis.
-3-o. 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 Environmental
Programs and Operations 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.
2. The rates for each service defined in Section 1, shall be as follows:
a. Residential, single. $27.90 per dwelling unit per month.
b. Residential, multi. $27.90 per dwelling unit per month.
c. Special, bulk pick-up. $41.13 minimum charge. Charges
may be increased in $20.56 increments based on volume, weight or shape.
The City will provide a binding estimate before providing the service.
d. Commercial can (trash). $25.37 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). $11.96 per
billing unit. One billing unit is the monthly charge for collection of up to 1/2
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, $108.48 per month per bin for
one weekly collection. Greenwaste, $41.23 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, $133.26 per month per bin for
one weekly collection. Greenwaste, $43.51 per month per bin for oneweekly collection Additional weekly collections will be billed based on
multiples of this fee.
f. Temporary bins and on-call service.
1) Pull out: $6.68
2) Delivery/removal/re-spot: $8.33
3) Collection, on-call: Two (2) cubic yard bin: Refuse,
$27.77/each collection.
4) Collection, on calf: Two (2) cubic yard bin: Greenwaste,
$8.33/each collection.
5) Collection, on call: 3 cubic yard bin: Refuse,
$41.67/each collection.
6) Collectionon-call: 3 cubic yard bin: Greenwaste,
$9.05/each collection.
7) Bin rental fee: A prorated charge of $43.89 per month will
be assessed to a customer using a temporary bin.
9-
Special bin pick-up
1) Collection, special: Two (2) cubic yard bin: Refuse,
$27.77/each collection.
2) Collection, special: Two (2) cubic yard bin: Greenwaste,
$8.33/each collection.
3) Collection, special: 3 cubic yard bin: Refuse,
$41.67/each collection.
4) Collection special: 3 cubic yard bin: Greenwaste,
$9.05/each collection.
h. Extra bin pick-up.
1) 2 cubic yard: $27.77 per event.
2) 3 cubic yard: $41.67 per event.
-5-|101010101010101010 10
10|11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28I. Bin pull out. $30.26 per month, per bin.
j. Lock set. $9.16 per month per lock set.
k. Industrial.
1) Container re-spot (8, 10, 30, 40 cubic yard): $36.40
2. Container empty or removal: $162.36 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: $80.87 each ton,
measured to the nearest 100th of a ton.
2) Trash - over eleven (11) tons: $161.75 each ton,
measured to the nearest 100 th of a ton.
3) Asphalt -$46.22 each ton, measured to the nearest 100th
of a ton.
4) Asphalt — over eleven (11) tons $92.44 each ton,
measured to the nearest 100th of a ton.
5) Metal -$11.19 each ton, measured to the nearest 100th
of a ton.
6) Metal - over eleven (11) tons $22.38 each ton, measured
to the nearest 100 th of a ton.
7) Inert - $51.84 each ton, measured to the nearest 100 th of
a ton.
8) Inert - over eleven (11) tons $103.69 each ton, measured
to the nearest 100 th of a ton.
9) Clean wood - $42.46 each ton, measured to the nearest
100th of a ton.
-6-10) Clean wood - over eleven (11) tons $84.93 each ton,
measured to the nearest 100 th of a ton.
11) Contaminated wood - $51.84 each ton, measured to the
nearest 100 th of a ton,
12) Contaminated wood - over eleven (11) tons $103.69
each ton, measured to the nearest 100th of a ton.
13) Greenwaste - $51.84 each ton, measured to the nearest
100 th of a ton.
14) Greenwaste - over eleven (11) tons $103.69 each ton,
measured to the nearest 100 th of a ton.
9) Drop-body rental fee: A prorated charge of $143.31 per
month will be assessed to a customer using a drop-body.
m. Area clean-up. $63.67 per event. The fee will increase by
$41.67 for each additional bin load (3 cubic yard) of trash.
n. Compactor housekeeping fee. This is a variable charge
that will be assessed to businesses that use the Cardiff compactor
located in downtown Culver City. The fee will not exceed $90.00
per month for each restaurant that uses the compactor.
o. Waste reduction and recycling incentive. The Environmental
Programs and Operations Manager shall establish incentive rates for
recyclable materials based on current market conditions. Inventive
rates may be applied to the following services:
1) Commercial bin.
2) Temporary bin.
3) Special bin and bulk pick up.
4) Extra bin pick up.
5) Transfer and disposal.
-7--8-
OL A. SCHWA:, City Attorney
3. 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.
4. The Los Angeles County Auditory-Controller shall enter on the County
l 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.
5. 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.
6. 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.
7. 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 Chief Financial Officer.
8. Resolution No. 2007-R033 is hereby rescinded.
APPROVED and ADOPTED this day of 2008.
D. SCOTT MALSIN, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:|101010101010101010 10
10|11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
MARTIN R. COLE, City Clerk
A08-00213