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HomeMy WebLinkAboutReso 2021-177RESOLUTION NO. 2021-177 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN INCREASE IN MAXIMUM WASTE COLLECTION RATES IN ORDER TO COVER THE COSTS OF COMPLIANCE WITH STATE REGULATION SB1383 WHEREAS, in 2014 the City of Chula Vista and Republic Services entered into an amended and restated solid waste and recycling franchise agreement to provide collection services to all residential and commercial properties in Chula Vista (the “Agreement”); and WHEREAS, the Agreement allows Republic Services to charge fees for waste collection services subject to maximum rates established in the contract, requires Republic Services to develop collection programs to help the City comply with new waste reduction and recycling laws, allows Republic Services to request City approval for service fee increases to cover program development costs, requires Republic Services to pay the City a 20% franchise fee and an additional 5% AB 939 fee that is used waste reduction and recycling programs and education, both of which Republic may pass-through to customers; and WHEREAS, the Governor of California signed into law SB 1383 (Lara, Chapter 395, Statutes of 2016), establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants (SLCP); this law requires all cities and counties in the State of California to establish new collection programs to divert all organic waste from landfill disposal; and WHEREAS, decomposition or organic waste in landfills creates emissions from the creation of methane, a powerful greenhouse gas which is up to 80 times more harmful to the atmosphere than carbon dioxide, 20 percent of the methane emissions in California come from landfills; and WHEREAS, establishing programs to reduce the amount of waste Chula Vista residents and business send to landfill disposal is an emission reduction program that also aligns with the City’s zero waste efforts and with the Climate Action Plan; and WHEREAS, Republic Services is proposing service rate adjustments to cover the costs to provide a new organic waste collection program that will process all food waste, landscape and pruning waste, clean unpainted lumber, food-soiled paper products, and food-soiled cardboard products from Chula Vista homes and businesses and to process the organic waste into a nutrient rich compost product to be used as a soil amendment and for carbon sequestration properties; and WHEREAS, as part of this proposal Republic Services will provide the City of Chula Vista with assistance to comply with requirements of the new regulation including: food waste program outreach and education for residents and businesses, program record keeping and monitoring, free compost for City projects to meet procurement requirements of the regulation, $50,000 per year in endowments to local edible food rescue organizations, free indoor food waste collection containers and education to residents and business that use the Otay Landfill to self-haul materials; and DocuSign Envelope ID: 04D2594E-C3C0-4A92-A038-99F316035502 Resolution No. 2021-177 Page No. 2 WHEREAS, City staff and Republic Services have met and conferred for more than a year to evaluate the rates and have determined that said rates are below regionwide averages and that some of the benefits to be offered are unique to Chula Vista. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it: 1. Approves a rate adjustment for a new food waste and other organic waste collection and processing program to cover the costs of compliance with State regulation SB1383 not to exceed the maximum rates set forth on Exhibit A attached hereto; and 2. Directs staff to continue their outreach to businesses and residents ensuring that they continue to receive the highest quality service; and 3. Directs City staff to proceed with conducting the Proposition 218 proceedings necessary prior to the implementation of the proposed rate adjustment. [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID: 04D2594E-C3C0-4A92-A038-99F316035502 Resolution No. 2021-177 Page No. 3 Presented by Approved as to form by Eric C. Crockett Glen R. Googins Deputy City Manager/Director of Economic City Attorney Development PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 14th day of September 2021 by the following vote: AYES: Councilmembers: Cardenas, Galvez, McCann, Padilla, and Casillas Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None Mary Casillas Salas, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2021-177 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 14th day of September 2021. Executed this 14th day of September 2021. Kerry K. Bigelow, MMC, City Clerk DocuSign Envelope ID: 04D2594E-C3C0-4A92-A038-99F316035502 Exhibit A Not to exceed maximum rate adjustment for new food waste and other organic waste collection and processing program to cover the costs of compliance with State regulation SB1383. All proposed new rates below are subject to yearly increase based on regional Consumer Price Index per section 7.4 of the amended and restated solid waste collection and recycling franchise agreement between the City of Chula Vista and Republic Services, Inc. Proposed rates for all Chula Vista residential customers: Proposed new rates for all Chula Vista multifamily customers: Service Description New rates after the proposed rate adjustment Residential multifamily bin service for properties with 9 units or more Recycling charge per unit $5.74 per unit Recycling and green waste charge per unit $5.74 per unit Proposed new service for commercial food waste collection: Food waste per container quantity and service frequency proposed pricing Container Quantity 64-gal commercial food waste cart cost 2-yrd commercial food waste bin cost 1 container $99.49 $187.51 2 containers $147.40 $257.08 3 containers $195.32 $326.65 4 containers $243.23 $396.22 5 containers $291.14 $465.80 6 containers $339.05 $535.37 Service collection Frequency 1 day per week $99.49 $187.51 2 days per week $198.98 $375.01 3 days per week $397.96 $750.03 4 days per week $795.92 $1,500.05 5 days per week $1,591.85 $3,000.10 Proposed adjustment per level of service* New rate plus increase 32-gal trash cart service $2.79 per month $21.16 per month 64-gal trash cart service $3.61 per month $27.40 per month 96-gal trash cart service $4.26 per month $32.27 per month *Rate includes collection of trash, mixed recycling, and mixed organics. Service Description Current Rates Rates After Proposed Price Adjustment Residential Multi-family bin service for 6 to 9 units (with City approval) Recycling only - charge per unit (in addition to the trash rate) $2.83 $5.74 Recycling and green waste charge per unit (in addition to the trash rate) $4.63 $5.74 DocuSign Envelope ID: 04D2594E-C3C0-4A92-A038-99F316035502