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HomeMy WebLinkAbout2012/04/24 Item 10CITY COUNCIL AGENDA STATEMENT ~~~ CITY OF CHUTA VISTA 4/24/2012, Item 00 ITEM TITLE: PUBLIC HEARING: CONSIDERATION OF ALL WRITTEN PROTESTS AGAINST THE PROPOSED RATE ADJUSTMENTS FOR GENERAL SERVICE RATES FOR SOLID WASTE SERVICES AND MARKET ADJUSTMENT FORMULA FOR LARGE QUANTITY GENERATOR TRASH, RECYCLING AND GREEN WASTE RATES RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE RESULTS OF THE PUBLIC PROTEST PROCESS FOR SOLID WASTE GENERAL SERVICE RATES; AND APPROVING THE SOLID W STE SERVICE RATE ADJUSTMENTS FOR 2012 AND BSEQUENT YEARS, PURSUANT TO THE APPROVED FO LA SUBMITTED BY: DIRECTOR OF PUBLIC WORKS ASSISTANT DIRECTOR OF ENC REVIEWED BY: CITY MANAGER ASSISTANT CITY ANAGER ST 4/STHS VOTE: YES ^ NO SUMMARY The purpose of this public hearing is to consider all written protests against the proposed rate adjustments for General Service Rates for Solid Waste. All protests must be submitted in writing to the City Clerk, prior to the close of the public hearing, signed by the property owner and contain a description of the property (address and/or Assessor Pazcel Number). Only one written protest per address will be accepted. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposed action consists of a governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessazy. 10-1 4/24/12, Item /0 Page 2 of 4 RECOMMENDATION Council conduct the public hearing, receive the results of the majority protest process and, if written protests have not been submitted for a majority of the parcels, adopt the resolution accepting the results and approving the rate adjustments. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The City of Chula Vista has a franchise agreement with Allied Waste Services, a Republic Services Company, to provide waste hauling services within the City. That agreement sets forth the terms of annual trash increases, tied to the San Diego Area Consumer Price Index (CPI). The rates aze scheduled to increase each yeaz on July 1, for Lazge Quantity Generators (commercial and industrial bin service customers) and September 1, for Small Quantity Generators (residential cart service customers). The CPI formula has not changed since Council approved the Amended and Restated Recycling and Solid Waste Franchise Agreement (Agreement) in 1999. The City is required to conduct a majority protest heazing pursuant to Government Code section 53756, which provides that a schedule of fees for aproperty-related service may not exceed afive-year period. The last majority hearing was conducted in 2007. The City is required to notify the property owners/customer of record and conduct a majority hearing, pursuant to California Constitution Article XIIID, section 6, in 2012. The public notice must show the maximum amount of the fee, the basis for calculation, the reason for the fee and that the fee is only for the cost of the service and used only for the purpose for which it is collected. In order to comply with regulatory and contractual requirements outlined above, City staff began the majority protest and public hearing process for the affected property owners/customers of record. March 8, 2012, Public Notices were mailed to the property owners/customers of record for the 71,522 affected properties in Chula Vista. (See attachment). The notice contained some of the most common service maximum rates with information on how to access the entire 29 page rate schedule on the City website www.chulavistaca.aov/clean, by emailing EnvironmentalServices@chulavistaca.gov or calling Environmental Services hotline at 619 691-5122. • The mailing started a 45 day period for property owners to protest the rate adjustment formulas. All written protests are required to be signed by the property owner and describe the property either by address or Assessor's Parcel Number. All written protests must be received by the City Clerk before the close of the majority protest public hearing. ^ At the public heazing City Council is to receive all final tabulations of the written protests received by the City Clerk. If written protests are not received for a majority of the affected parcels (35,762 written protests would constitute a majority), the rate adjustment formula and rate adjustments for the next five years, beginning in 2012, shall be approved. 10-2 4/24/12, Item Page 3 of 4 The Public Notice serves as communication of the rate adjustment formula. The formula is described in the Agreement and states that Allied Waste Services is entitled to an annual rate increase for General Service Rates within the following prescribed terms and conditions: The annual adjustment amount for General Service Rates does not exceed sixty-six and two-thirds percent (66.66%) of the increase in the San Diego Area Consumer Price Index (CPI) for all Urban Consumers (all items) published by the U. S. Department of Labor, Bureau of Labor Statistics for the previous twelve-month period (calendar year) for which statistics are available. CPI X 66.66% _ % of rate adjustment Notwithstanding the foregoing, at no time shall the Small Quantity Generator Rates (SQG -cart service) exceed ninety percent (90%) of the average for the County of San Diego for the same level of service -approximately 60-gallon cart rate or standard service rate after subtracting any pass-through fees or local subsidies. This limitation is to be applied only to determine whether the Contractor is entitled to the full sixty-six and two thirds (66.66%) CPI adjustment on SQG rates, as described above. Mean County Average X 90% =Maximum rate for SQG In accompaniment to the above limiting factors on annual rate adjustments, the Contractor is eligible for a market adjustment of the General Service Rates, Commercial Mixed Paper Rates and Commercial Green Waste Rates every four years. For market adjustments in 2007 and 2011, the maximum market adjustments shall be up to ninety percent (90%) of the adjusted mean county average for such rates. Beginning July 1, 2015, the maximum market adjustments applicable to Large Quantity Generator service rates (excluding three yard bin or smaller/once per week service) shall be increased to ninety-fzve percent (95%) of the corresponding mean county average. Rate adjustments are effective July 1, for Large Quantity Generators (commercial and industrial bin service customers) and September 1, for all Small Quantity Generators (residential cart service customers), annually. The City Manager or designee annually reviews the rates for compliance with the contractual terms. If the proposed rate adjustments meet the contract conditions, the annual rate adjustments will be implemented upon a 30-day notice to the rate payers. The table below is the history of rate adjustments since the last majority heazing in 2007. 5 Year Histor of Rate Ad'ustments 2007 Rate Aduustment 2.27% 2008 Rate Aduustment 1.53% 2010 Rate Aduustment None 2011 Rate Aduustment 0.88% 2012 Proposed Rate Adj. 2.0% 10-3 4/24/12, Item /~ Page 4 of 4 DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that the rates adjustments contemplated by this action will be imposed on service provided to the City Councilmembers' properties. However, the impact of this decision will affect the Councilmembers' financial interests in the substantially the same manner as it will impact the financial interests of a significant segment of the public. As a result, the Councilmembers' property interests do not create a conflict of interest for the Councilmembers. CURRENT YEAR FISCAL IMPACT The maximum rate adjustment the hauler may receive is 66.66% of the Consumer Price Index. For 2012, this equates to two percent (3% CPI X 66.66% = 2%). City franchise fees (10%) and AB 939 fees (5%) are a percentage of the solid waste rates. Any Consumer Price Index rate adjustment provides a small increase to the General Fund and the Environmental Services Fund. All costs associated with contract oversight, solid waste, and recycling programs, are covered within the Environmental Services Fund. ONGOING FISCAL IMPACT In subsequent years the formula as described above, provides small increases to the General Fund and the Environmental Services Fund. All costs associated with contract oversight, solid waste, and recycling programs are covered within the Environmental Services Fund. ATTACHMENTS Public Notice Mailer Prepared by: Lynn France, Environmental Services Program Manager, Public Yi%rks Depart.-Engineering H: IPUBLIC WORKSIAGENDAICAS2072104-24-121CAS -Prop 218 General Service Rates-JDSMRedline (2).doc 10-4 in Conformance with Article XIIID of the California State Constitution and the Proposition 210 Omnibus Implementation Act. In compliance with Article XIIID of [he California State Constitution and the Proposition 218 Omnibus Implementation Act, the City of Chula Vista is hereby notifying all affected property owners of the proposed annual rate adjustment formula for General Service Rates for Solid Waste Services. Rate adjustments are effective July 1 for Large Quantity Generators (commercial and industrial bin service customers] and September 1 for all Small Quantity Generators (cart service customers). PUBLIC HEARING INFORMATION The purpose of the hearing is to consider all written protests against the proposed rate adjustment formula for General Service Rates (or Solid Waste for the parcel for which 3~ou are shown as owner or customer of record. The Public Hearing on this item will be held on Apri 24, 2012, at 4:00 p. m. at 276 Fourth Avenue, Chula Vista, California 91910 in the City Council Chambers. All written protests must be submitted to the City Clerk's office by 3:00 p.m. on April 24, 2012 and will also be accepted in the Council Chambers at the public hearing. All written protests must be signed by the property owner and contain a description of the property (address and/or Assessor Parcel Number). Only one written protest per address will be accepted. Oral cornrnents at the public hearing will not qualify as formal protests unless accompanied by a written protest. A e public hearing, City Council will receive final tabulation of all written protests received by the Ci Clerk. Ii a majonty of written protests from property owners and customers of record is not received, [he rate adjustment formula and subsequent rate adjustments shall be approved by the City Council as specified in the City's solid waste franchise agreement. Please send your written protest to: City of Chula Vista, Office of the City Clerk 276 fourth Ave, Chula Vista, CA 91910 Or fax to: (619) 585-5774 Protests sent by email will not be considered. NI written protests must be signed by the property owner and contain a description of the property (address and/or Assessor Parcel Number). FREQUENTLY ASKED QUESTIONS Why did I get this mailing? This mailing serves as notice (or the annual General Service Rate adjusment for Solid Waste Service Rates provided by a private contractor. Do I have to respond to this notice? No, you do not have to respond to this notice. I(, however, you feel sVOngly opposed to the fee increase or the General Service Rate adjustment formula, you can hle your written protest with the City Clerk's office as described in the section above. What if I have more questions? If you have questions about your waste services you may call 619 69L5122, or email the City at 6rvironmenta ServicesCwchulavistaca.gov. ON SOLID WASTE GENERAL SERVICE RATE ADJUSTMENTS April 24, 2012 4 p.m. Council Chambers Chula Vista City Hall 276 Fourth Avenue, Chula Vista, CA 91910 ~q 'elsiA elny~'anuanV ylmoj 9LZ oopoas saryrrx lwuawaml^u3 tl151A V1r1N;) ®ruawvedan sh~onq nl9nd won a~ jii /i1~ EaPLANATION of Annual Adiustment for Solid Waste General Service Rates General Scrvicc Rates for solid waste, recycling, yard waste and disposal are established annually. A private contractor (Contractor) with en exclusive franchise agreement (Agreement) provides these services in the City of Chula Vista. Under the. terms and conditions of the Agreement, [he Contractor undertakes and agrees to collect, 6ansfcr, hansport, recycle, process and dispose of all recyclables, yard waste, and solid waste which is generated and placed for collection by or upon all property located within Chula Vista. Per the Agreement, the Contractor is entitled to an annual rate increase for General Service Rates within the following prescribed terms and conditions. The City Manager or designee annually reviews [he rates for compliance with these terms. CPI%x66.66%=equal maximum annual rate adjurtmentfor2012 3.0%R66.66%=2.0°M Maximum Propased.Rale Adjustment for 2012 J Current Rate % Ad'ustmenP Chan a/Month Prn rased Rale Effective Dale 35-GalCart $13.24 200% $0.26 $13.50 Se t. 1, 2012 -Ob4-Gal Cart $17.15 2.00% $034 $17,49 Se t. 1, 2012 9GGal Carl $20.18 2.00`% $0.40 520.58 Se L 1, 2012 3-Cuhic Yard Rin $95.G8 2.00 % $1.91 $97.59 July 1, 2012 The annual adjustment amount for General Service Rates does not exceed sixty-six and two-thirds percent (66.66 %) of [he increase in [he San Diego Area Consumer Price Index (CPI) for all Urban Consumers (all items) published by the U5. Department of Labor, Bureau of Labor Statistics for the previous twelve-month period (calendar year) for which statistics are available CPI X 66.66% _ % of rate adjustment Notwithstanding the foregoing, at no time shall the Small Quantity Generator Rates (SQG -cart service) exceed ninety percent (90 %) of the average for the County of San Diego far the same level of service -approximately 60-gallon cart rate or standard service rate after subtracting any pass-through fees or local subsidies. This limitatidnis to be applied only to determine whether the Contractor is entitled to the full sixty-six and two thirds (G6.6G %)CPI adjustment nn SQG rates, as described above. Mean County Average X 90 % =Maximum rate for SQG GJ e,~.em on m<ra.a v.v.. Market Adjustment on Large Quantity Generator Rates TRASH 3 r.y. bin GREEN WASTE 3 c.y, bin RECYCLING up l0 8 c.y. of service 201 I CV Rale E95.ae 2011 CV Rate $61.14 2011 CV Rale 450.11 'i0%bladet 90%Markel <l0%Markel r\dbslment No ad'usF Ad'ustmenl E29.35 Ad'ustment $1.21 Total Rale with Tura Rale with Total Role with AAlusbnenl 395.60 Aduslment 390.49 Ad'ustment SSIJO CPI 2012 Adlu tmenl3% CPI 2012 Adjuslment3% CPI 2012 AdIusOnenl3°/ CPIx66.66%=2% 3L91 CPIx66b0%=2% E7.01 CV'Iz GG.G6'%=2% EL04 2012 Rale 59].59 2012 Rale 392.30 2012 Rale $52.82 These rate are eRectve luly 1, ZD12 2015 Market adjustm€nt will be to 95°6 of the Countywide tatu with the excepHOn o/3 cy. trash bins and smaller In accompaniment fn the above limiting factors on annual rate adjustments, the Contractor is eligible for a market adjustment of the General Service Rates, Commercial Mixed Paper Rates and Commercial Green Waste Rates every four years. For market adjustments in 2007 and 2011, the maximum market adjustments shall be up to ninety percent f90 %) of the adjusted mean county average for such rates. Beginning fuly 1, 2015, the maximum market adjustments applicable to Large Quantity Generator service rates (excluding three yard bin or smalleNonce per week service) shall be increased to ninety-five percent (95%) of the corresponding mean county average. Rate adjustments are effective July 1, 2012, for Large Quantify Generators (commercial and industrial bin service customers) and September 1, 2012, for all Srnall Quantity Generators (residential cart service customers), annually. As a rr_sul[ of these rnnlractual limiting factors there was no rate adjusnnent krr Small Quantify Generators in 2010. In 20l 1, the rate adjushnent was .88%" (CPI = 1 .32 % times 66.66 % _ .88%). City of Chula Vista Proposed General Service Monthly Rates Maximum Adiustment The tables in this document show some of the current rates and proposed adjustments for the most common levels of service. Your service level may not be reflected in those tables, however, the maximum proposed rate adjustment can he determined (or all service levels by applying [hc following formula: Current Rate x 1.02 =Maximum Adjusted Rate. In addition, the new maximum proposed rate for all service levels is reflected on the City's mte schedule which can be viewed at wwww.chulavistaca.gov/clean; click on Public Notice 2012 Rate Sheet. You may contact us at 619-691-5122 or email the City at EnvironmentalServicesC~chulavistaca.gov. RESOLUTION 2012- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE RESULTS OF THE PUBLIC PROTEST PROCESS FOR SOLID WASTE GENERAL SERVICE RATES; AND APPROVING THE SOLID WASTE SERVICE RATE ADJUSTMENTS FOR 2012 AND SUBSEQUENT YEARS, PURSUANT TO THE APPROVED FORMULAS WHEREAS, the City of Chula Vista entered into a franchise agreement for Solid Waste Services with Allied Waste Services, a Republic Services Company, (formally Pacific Waste Services) in July 1999; and WHEREAS, the franchise agreement contains specific language and formulas for calculating annual rate adjustments, which includes limitations that ensure the Chula Vista ratepayers will continue to have some of the lowest rates for service in San Diego County; and WHEREAS, the franchise agreement provides for annual increases based on the San Diego Area Consumer Price Index (CPI) for all urban consumers; and WHEREAS, the City has provided notice of the proposed rate increases, consistent with the California Constitution, Article XIII D, Section 6; and WHEREAS, a the notice was mailed on March 8, 2012 which started the 45 day opportunity for owners to protest the rate adjustment formulas for Solid Waste General Service Rates and periodic Market Adjustment of the General Service Rates for Large Quantity Generators for solid waste, green waste and recycling. WHEREAS, the City has conducted the requisite majority protest process, culminating with a public hearing on April 24, 2012; and WHEREAS, written protests against the proposed rate increases were not presented by a majority of the identified parcels; and WHEREAS, the City Council accepts the results of the majority protest. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept the results of the majority protest process, approving the rate adjustment formulas for the General Service Rates, as described in the "Notice of Public Hearing," a copy of which is on file in the office of the City Clerk. Presented by Approved as to form by Gen R. Googins City Attorney Richard A. Hopkins Director of Public Works 10-7