City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the Culver City Council adopt a Resolution establishing and
levying a 5% increase in residential, commercial, and drop body refuse fees
beginning July 1, 2009.
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 2009/2010.
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 by resolution of the City Council,
and that the following affidavits are on file in his office:
1. Affidavit of Publication; and
2. Affidavit of Posting.
Mayor and Council: Consider a Motion to receive and file all affidavits.
City Clerk: Announce the number of written protests received, if any,
and announce that copies of all such protests have been
Meeting Date: 06/22/2009 Item Number: PH-4
AGENDA ITEM: PUBLIC HEARING - Adoption of a Resolution of the City Council
Establishing and Levying a Refuse Rate Schedule effective on July 1, 2009 and
Rescinding Resolution Numbers 2008-R040 and 2002-R122 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 May 8, 2009.
Master E-Mail Notification List (06/17/09).
Department Approval:
Charles D. Herbertson (06/12/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (06/18/09)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (06/17/09)
City Manager Approval:
Mark Scott (06/18/09) City of Culver City, California
City Council Agenda Item Report
delivered to the City Council or summarize the contents
thereof.
Mayor: 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: Consider 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 Refuse and Recycling
Divisions (Sanitation) operate solely on revenues generated from the provision of
solid waste transfer and collection services to businesses and residences, 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:
• An annual La Ballona Creek Cleanup Event at a cost of approximately
$2,300.
• An On-Call bulky item pickup program that provides up to two annual pickups
for residential customers for a cost of approximately $109,610. City of Culver City, California
City Council Agenda Item Report
• Citywide street sweeping for an annual cost of $290,472.
• Pedestrian container and all bus stop container collection services for an
annual cost of approximately $51,967.
• Removal of illegally dumped bulky items in the public right-of-way for an
annual cost of $23,954.
The Sanitation Enterprise fund will contribute $1,555,238 to the City’s General Fund
to offset the cost of services rendered to Sanitation by other City Departments in
Fiscal Year 2009/2010.
Sanitation Payments to City Funds
In 1985, the City’s General Fund provided a loan to the Sanitation Enterprise Fund in
the principal amount of $2,000,000 for a term of 34 years. In 1999, the remaining
outstanding loan amount was refinanced and additional funding was included from
the Equipment Replacement Fund and the Innovation Fund. The interest rate is 7%.
The annual aggregate payment due to the three funds is $163,628. The Sanitation
Enterprise Fund also pays its fair share of rental for City owned facilities in the
amount of $78,000 per year.
Refuse Rate Adjustment Fiscal Year 2008/2009
During Fiscal Year 2007/2008, a comprehensive revenue and expenditure estimate
analysis of Sanitation services based on the projected operating budget for Fiscal
Year 2008/2009 was conducted. The analysis demonstrated that the residential and
commercial fees would need to be increased by 4% to balance revenues to the
costs of providing services.
The City Council concurred with staff’s recommendation and adopted a resolution
implementing the current rate schedule.
Public Notification
Pursuant to City Council direction, and in compliance with Proposition 218, the
Public Works Department mailed postcards to all property owners and business
customers in the City, advising them of tonight’s discussion and the proposed fee
increases.
City of Culver City, California
City Council Agenda Item Report
DISCUSSION:
The City Council establishes refuse fees to ensure that revenues cover the costs of
services provided. During the Fiscal Year 2009-2010 budget preparation process,
staff projected that operating costs will increase by approximately $473,991. The
following table provides a line item description of the increased costs:
Description
Adopted Budget Fiscal
Year 2008-2009
Maintenance of
Effort Budget Fiscal
Year 2009-2010 Difference
Percent
Increase
Personnel Services $4,451,081 $4,524,963 $73,882 1.66%
Administrative Charges $1,395,421 $1,555,238 $159,817 11.45%
Street Sweeping Contract $282,308 $290,472 $8,164 2.89%
*OPEB $0 $112,203 $112,203 100.00%
**Trash Disposal $1,952,755 $2,072,680 $119,925 6.14%
Total Increase
From Previous
Fiscal Year: $473,991
*Other Post Employment Benefits (OPEB) – Medical benefits for current and future
retirees.
**It is important to note that 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 the Mesquite Regional Landfill located in Imperial
County located over 150 miles away.
Proposed Rate Schedule Increase
The cost of Sanitation operations is projected to increase significantly for Fiscal Year
2009/2010 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.
City of Culver City, California
City Council Agenda Item Report
Taking into account refuse collection rates of other local municipalities and private
solid waste companies that service local municipalities, staff determined that a 5%
fee increase for commercial and residential service will bring rates in line with the
market while covering Sanitation’s expenses.
The following is the proposed fee schedule:
Sanitation Service Current Fees
Proposed Fees FY
09'-10'
Residential Cans (monthly) $27.90 $29.30
Commercial Cans (monthly) $25.37 $26.64
Commercial Can Recycle $11.96 $12.56
2-CY Scheduled Trash $108.48 $113.90
2-CY Scheduled Greenwaste $41.23 $43.29
2-CY Scheduled Recycle $27.56 $28.94
3-CY Scheduled Trash $133.26 $139.92
3-CY Scheduled Greenwaste $43.51 $45.69
3-CY Scheduled Recycle $29.21 $30.67
*Communal Compactor Variable-
Restaurant $140.00 $147.00
**Communal Compactor Variable-
Commercial $50.00 $52.50
***Temp Bin Rental $44.10 $46.31
Lock Set $9.16 $9.62
Bin Pull-Out $30.26 $31.77
*The fee is based on restaurants with an average size of 2,582 square feet. The fee
is increased or decreased by dividing the square footage of a restaurant by 2,582
and multiplying that number by $147.
**The fee is based on commercial business with an average size of 4,829 square
feet. The fee is increased or decreased by dividing the square footage of a
business by 4,829 and multiplying that number by $52.50.
***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.
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 schedule is in
the 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
(3 cubic-yard)
Culver City $29.30 $139.92
Santa Monica $31.50 $140.09
Beverly Hills $60.00
$110.40 (Commercial)
$171.11 (Restaurant)
Burbank* $21.75 $173.46
Los Angeles** $36.32 $104.24
Pasadena $22.10 $137.10
* Burbank has a City operated disposal site and does not include the cost of disposal
in their rates.
** Published rates from private haulers do not include street sweeping or other City
related services.
FISCAL ANALYSIS:
The proposed rate schedule will balance the Sanitation Enterprise Fund operating
budget by generating approximately $11,633,926 in revenue for Fiscal Year 2009-
2010, which is slightly lower than the projected expenditures of $11,741,923. To
bridge the gap between revenue and expenditures, staff will ask the City Council to
enter into an agreement with an outside agency to process trash through the Culver
City Transfer Station in July 2009. The agreement will generate approximately
$220,000 in revenue. 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, 2009.
City of Culver City, California
City Council Agenda Item Report
ATTACHMENTS:
• Proposed Resolution
MOTION:
That the City Council:
1. Conduct a Public Hearing related to the proposed Refuse Rate Schedule;
and,
2. Adopt a Resolution to increase the Residential and Commercial Rate
Schedule by 5%, effective July 1, 2009, and rescind Resolutions 2008-R040 and
2002-R122 that established refuse rates for Fiscal Year 2008-2009.
6/22/09
Adoption of a Resolution of the City Council
Establishing and Levying a Refuse Rate Schedule
Effective on July 1, 2009 and Rescinding
Resolution No.s 2008-R040 and 2002-R122 that
Established the Existing Refuse Rate Schedule.
MEETING DATE:
AGENDA ITEM:
ATTACHMENTS
Pages|109| Resolution 1-9RESOLUTION NO. 2009-RXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, ESTABLISHING AND
LEVYING A REFUSE COLLECTION FEE, AND
RESCINDING RESOLUTION NO.'S . 2004-R122 and 2008-
R040
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
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(jam)c. Special, bulk pick-up. This non-scheduled service provided to
residential customers having more than 64 gallons of refuse to be collected in
a 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 all extra pick-ups.
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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
locations 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. Community Compactors. Compactors are those which are
installed in the Culver City Downtown as part of the" Downtown Culver City
Paseo Improvement Project. Downtown businesses place their refuse in City
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3provided compactors that are serviced by refuse collection vehicles. Fees
are assessed to downtown businesses based on business type (restaurant or
other) and, size (square feet) through the City Budget & Finance Department
o. 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.
p. 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. $29.30 per dwelling unit per month.
b. Residential, multi. $29.30 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). $26.64 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). $12.56 per
billing unit. One billing unit is the monthly charge for collection of up to 1/2
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(jam)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, $113.90 per month per bin for
one weekly collection. Greenwaste, $43.29 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, $139.92 per month per bin for
one weekly collection. Greenwaste, $45.69 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: $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 call: Two (2) cubic yard bin: Greenwaste,
$8.33/each collection.
5) Collection, on call: 3 cubic yard bin: Refuse,
$41.87/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.
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-5-1) 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.
i. Bin pull out. $31.77 per month, per bin.
j. Lock set. $9.62 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 100 th 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.
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4) Asphalt — over eleven (11) tons $92.44 each ton,
measured to the nearest 100 th 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 1h of a ton.
9) Clean wood - $42.46 each ton, measured to the nearest
100th of a ton.
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 100th of a ton.
12) Contaminated wood - over eleven (11) tons $103.69
each ton, measured to the nearest 100 th of a ton.
13) Greenwaste - $51.84 each ton, measured to the nearest
100th 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. Community compactors
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1. Collection fee for restaurant businesses. The fee is based on
restaurants with an average size of 2,582 square feet. The fee is
increased or decreased by dividing the square footage of a restaurant
by 2,582 and multiplying that number by $147.00.
2. Collection fee for non-restaurant businesses. The fee is based
on commercial businesses with an average size of 4,829 square feet.
The rate is increased or decreased by dividing the square footage of a
business by 4,829 and multiplying that number by $52.50.
3. Administrative Fee for All Uses. A fixed fee of $80 shall be
charged to businesses participating in the community compactors in
addition to the collection fee. This fee is required to cover the
purchase, maintenance, and replacement of the community
compactors.
o. 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.
p. 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.
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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
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.'s 2004-R122 and 2008-R040 is hereby rescinded.
APPROVED and ADOPTED this day of
2008.
Andrew Weissman, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
MARTIN COLE, City Clerk CAROL A. SCHWAB, City Attorney
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