HomeMy WebLinkAbout06/17/2003, PH 3B - INCREASING THE SOLID WASTE FRANCHISE FEE FROM 6% TO 10% councit June 17, 2003
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CITY 6F SAN LUIS O B I S P O
FROM: John Moss, Utilities Director/d�
Prepared By: Ron Munds, Utilities Conservation Coordinator
SUBJECT: INCREASING THE SOLID WASTE FRANCHISE FEE FROM 6% TO
10%.
CAO RECOMMENDATION
1. Introduce an ordinance amending the Solid Waste, Residential Curbside Recycling and
Green Waste Collection Franchise Agreements with San Luis Garbage Company to
increase the franchise fee from 6% to 10% (Attachment 1).
2. Adopt a resolution increasing solid waste rates by 4.44% to support the increase in
franchise fee from 6% to 10% (Attachment 2).
DISCUSSION
Franchise Fee Increase
As part of the 2003-2005 Financial Plan preparation, staff is recommending increasing the solid
waste franchise fee from 6% to 10%. By raising the fee, the City will also be more in line with
what other jurisdictions south of Cuesta Grade charge for solid waste franchise fees (Attachment
3). The last franchise fee increase was in 1987 when it went from 4% to 6%. The rate increase
required to increase the franchise fee from 6% to 10% is 4.44%.
In order to facilitate the increase in the franchise fee, Article 8.1 Franchise Fee Payment, of the
agreement with San Luis Garbage must be amended to reflect the increase in the fee (Attachment
1). Additionally, since the franchise fee payment is considered a pass through cost, according to
the Rate Setting Process and Methodology Manual.for Integrated Solid Waste Management
Rates adopted in 1994, a resolution to adopt new solid waste rates to reflect the increase in the
fee is attached as part of this report (Attachment 2).
FISCAL IMPACT
As mentioned, since the franchise fee is a pass through cost per the rate setting process, the
following are the proposed solid waste rates required to support the change identified in this
report:
Council Agenda Report—Solid Waste Franchise Fee Increase
page 2
Residential Solid Waste Services/Rates (still need new rates)
Service Level Current Proposed
Service Rate Service Rate
Mini-can* $6.19/month $6.46/month
(19gallon)
Economy* $9.90/month $10.34/month
(32 gallon waste wheeler)
Standard* $19.80/month $20.68/month
(64 gallon waste wheeler)
Premium* $29.70/month $31.02/month
(96 gallon waste wheeler)
*Solid waste rates are based on mandatory service. All residential service levels receive green
waste and recycling services within the defined service rate.
Commercial Solid Waste Services
As identified in Exhibit A to Attachment 2.
ALTERNATIVES
The Council may elect to reduce the proposed franchise fee increase or choose to retain the
current franchise fee amount. This measure is one of the proposed components of the overall
fiscal strategies to ensure continued General Fund services. This alternative, therefore, is not
recommended.
ATTACHMENTS
Attachment 1- Ordinance Amending Franchise Agreement
Attachment 2- Resolution
Exhibit A - Rate Schedule for Integrated Solid Waste Activities
Attachment 3-Franchise Fees of Other Jurisdictions
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Attachment 1
ORDINANCE NO. (2003 Series)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AMENDING THE SOLID WASTE, RECYCLING AND GREEN WASTE
COLLECTIONFRANCHISE AGREEMENTS WITH SAN LUIS GARBAGE COMPANY
TO INCREASE THE FRANCHISE FEE FROM 6% TO 10%
WHEREAS, the City Council granted, by ordinance, an exclusive franchise to San Luis
Garbage Company in March 1997 for solid waste collection, residential curbside recycling and
green waste collection services which stipulated that the company will pay a 6% franchise fee to
the City; and
WHEREAS, the City Council has made a determination that the franchise fee shall be
increased to 10%.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows: _
SECTION 1. Article 8.1 of Solid Waste Franchise agreement shall be amended to read
"In consideration of the exclusive franchise provided for in Article 4 of this agreement,
Franchisee shall pay the City ten percent(10%)of Franchisee's gross revenues for collection
and disposal of solid waste within the City".
SECTION 2. Article 7.1 of the Residential Curbside Recycling Services Agreement
shall be amended to read"In consideration of the exclusive franchise provided for in the
Agreement, Contractor shall pay the City ten percent(10%)of its gross revenues for residential
recycling services".
SECTION 3. Article 7.1 of the Green Waste Services Agreement shall be amended to
read"In consideration of the exclusive franchise provided for in the Agreement, Contractor shall
pay the City ten percent(10%) of its gross revenues for residential recycling services".
SECTION 4 .A summary of this ordinance, approved by the City Attorney, together
with the names of the Council members voting for and against it, shall be published at least five
days prior to its final passage, in the Tribune, a newspaper published and circulated in this City.
This ordinance will go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the 17'h day of June 2003 AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the day of
2003, on the following roll call vote:
AYES:
NOES:
ABSENT:
Attachment 1
Ordinance No. (2003 Series)
Page 2
David F. Romero, Mayor
ATTEST:
Lee Price, C.M.C.
City Clerk
APPROVED AS TO FORM:
v- -
Jon . Lowell, City Attorney
Attachment 2
RESOLUTION NO. (2003 SERIES)
A RESOLUTION OF THE COUNCIL
OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING INTEGRATED SOLID WASTE RATES
WHEREAS, on June 21, 1994, the City Council of the City of San Luis Obispo approved
the Rate Setting and Methodology Manual for Integrated Solid Waste Management Rates; and
WHEREAS, the City is increasing the franchise fee paid by San Luis Garbage Company
from 6% to 10%;
WHEREAS, per the Rate Setting Manual and Methodology Manual for Integrated
Solid Waste Management Rates, the cost associated with the franchise fee increase is a pass
through cost charged to the solid waste rate base.
NOW,THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Resolution No. 9406(2003 series) is hereby rescinded on midnight, July
31, 2003..
SECTION 2. The rates set forth in Exhibit A shall be effective August 1, 2003.
On motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted on this day of 2003.
ATTEST: David F. Romero, Mayor
Lee Price, City Clerk
APPROVED AS TO FORM:
h-n-alho,6Lowell, City Attorney
(� Exhibit A
CITY OF SAN LUIS OBISPO
4.44% AVERAGE ACROSS THE BOARD INCREASE
FOR INTEGRATED SOLID WASTE ACTIVITIES
EFFECTIVE 8-1-2003
MULTI-UNIT RESIDENTIAL DUMPSTER CONTAINERS(PER MONTH)
Size of COLLECTIONS PER WEEK
container
(cubic yards) 1 2 3 4 5 6 7
1 $74.59 $108.631 $142.641 $176.67 $210.69 $244.69 $278.72
1.5 $86.37 $133.47 $180.58 $227.68 $274.80 $321.89 $369.02
2 $98.14 $157.03 $215.91 $274.79 $333.68 $392.54 $451.42
3 $121.68 $204.14 $286.57 $369.02 $451.45 $533.89 $616.33
4 $145.24 $252.55 $359.87 $467.17 $574.48 $681.81 $789.13
6 $192.33 $348.06 $503.80 $659.52 $815.27 $970.99 $1,126.73
The rates shown above include the monthly container rental fee and are the same for bins
and garwoods, when volume is identical.
COMMERCIAL GARBAGE CANS(PER MONTH)
number COLLECTIONS PER WEEK
of
cans 1 2 3 4 5 6 7
1 $18.33 $28.781 $3925 $49.71 $60.17 $70.63 $81.09
2 $23.55 $36.651 $49.73 $62.81 . $75.91 $88.99 $102.07
3 $28.79 $44.521 $60.21 $75.94 $91.64 $107.35 $123.06
4 $34.04 $52.361 $70.67 $89.00 $107.33 , $125.65 $143.97
5 $3927 $60.201 $81.14 $102,07 $123.02 $143.95 $164.89
6 $44.52 $68.05 $91.60 $115.16 $138.69 $162.26 $185.80
7 $49.74 $75.93 $102.08 $128.26 $154.44 $180.61 $206.78
8 $54.99 $83.78 $112.58 $141.37 $176.18 $198.98 $227.77
9 $60.21 $91.63 $123.04 $154.45 $185.85 $217.26 $248.68
Maximum volume and weight per garbage can: 35 gallons and 86 pounds
Additional charge per can per collection:
Optional Waste Wheeler rental if requested $0.00 Per month for 32 gallon 8 64 gallon size
Sunday service $45.81 per month in addition to garbage:service monthly cost
Proposed Rate Schedule for Integrated Solid Waste Services effective 8-1-2003
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Exhibit A
CITY OF SAN LUISOBISPO
COMMERCIAL WASTE WHEELER CONTAINERS(PER MONTH)
number COLLECTIONS PER WEEK
of
containers 1 2 3 4 5 6 7
1 $32.66 $52.291 $71.93 $91.56 $111.21 $130.83 $150.48
2 $53.55 $82.311 $111.10 $139.89 $168.67 $197.45 $226.25
3 $74.42 $112.36 $150.31 $188.25 $226.21 $264.14 $302.09
4 $95.29 $142.39 $189.52 $236.61 $283.73 $330.82 $377.95
5 $116.17 $172.45 $228.71 $284.99 $341.26 $397.52 $453.79
6 $137.05 $202.49 $267.92 $333.34 $398.77 $464.23 $529.64
7 $157.94 $232.53 $307.12 $381.72 $456.31 $530.90 $605.49
8 $178.81 $262.57 $346.321 $430.07 $513.831 $597.58 $681.34
9 $199.701 $292.60 $385.511 $478.41 $571.321 $664.21 $757.11
COMMERCIAL DUMPSTER CONTAINERS(PER MONTH)
Size of
container COLLECTIONS PER WEEK
(cubic yards) 1 2 3 4 5 6 7
1 $65.43 $91.601 $117.78 $143.95 $170.10 $196.291 $222.47
1.5 $73.28 $107.291 $141,.31 $175.34 $209.36 $243.39 $277.41
2 $81.13 $121.69 $162.28 $202.84 $243.42 $283.98 $324.55
3 $96.83 $153.09 $209.36 $265.63 $321.89 $378.17 $434.44
4 $112.52 $185.81 $259.07 $332.37 $405.64 $478.92 $552.21
6 $143.92 $247.31 $350.70 $454.09 $557.48 $660.86 $76426
8 $175.31 $308.81 $442.28 W5.781 $709.26 $842.75 $976.23
The rates shown above include the monthly container rental fee and are the same for bins
and garwoods, when volume is identical.
Sunday service $45.81 per month in addition to garbage service monthly cost
UNSCHEDULED EXTRA COLLECTIONS FOR
COMMERCIAL CUSTOMERS AND
MULTI-UNIT RESIDENTIAL.DUMPSTER CUSTOMERS
$30.11 1 cubic yard(minimum charge)
$39.26 2 cubic yards
$48.42 3 cubic yards
$57.58 4 cubic yards
Proposed Rate Schedule for Integrated Solid Waste Services effective 8-1-2003
38��1
Exhibit A
CITY OF SAN LUIS OBISPO
SINGLE_ FAMILY and MULTI-UNIT RESIDENTIAL(4 units or less)
VOLUME-BASED RATES
MINI-CAN SERVICE
$6.46 per month for one 19 gallon wastewheeler container collected once each week
ECONOMY RATE
$10.34 per month for one 32 gallon wastewheeler container collected once each week
STANDARD RATE
$20.68 1 per month for one 64 gallon wastewheeler container collected once each week
PREMIUM RATE
$31.02 per month for one 96 gallon wastewheeler container collected once each week
PREMIUM PLUS RATE
$9.42 per month for additional 32 gallon wastewheeler container collected once each week
$18.84 per month for additional 64 gallon wastewheeler container collected once each week
$28.26 I per month for additional 96 gallon wastewheeler container collected once each week
SERVICE AWAY FROM THE STREET CURB
$7.05 additional per month per can or container
LATE MAKEUP COLLECTIONS WITH GARBAGE TRUCK(phone call required)
$10.48 per trip plus charges identified above for any extra containers or equivalent volume
$5.17 additional charge per 33 gallon can or equivalent volume per collection
EXTRA COLLECTIONS WITH PICKUP OR FLATBED TRUCK(phone call required)
$15.72 per trip plus:
$5.17 per garbage can or equivalent volume(amounts over six cans by quotation)
$3.92 per white good article(once a month,residential customers only)
$3.92 per piece of furniture(residential customers only)
$3.92 per mattress or boxspring (residential customers only)
Proposed Rate Schedule for Integrated Solid Waste Services effective 8-1-2003
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Exhibit A
CITY OF SAN LUIS OBISPO
RATE SCHEDULE
FOR COMMERCIAL RECYCLING ACTIVITIES
BASE CHARGE FOR COMMERCIAL RECYCLING
All commercial customers will pay$3.00 per month for commercial recycling services.This charge includes
all recycling services except collection of cardboard in excess of two yards once a week.This base charge
has already been added to the garbage rates.
CARDBOARD COLLECTION
COMMERCIAL DUMPSTER CONTAINERS(PER MONTH)
Size of
container COLLECTIONS PER WEEK
(cubic yards) 1 2 3 4 5 6 7
1 INCLUDED $22.901 $29.44 $35.99 $42.531 $49.08 $55.61
1.5 INCLUDED $26.82 $35.32 $43.82 $52.33 $60.84 $69.36
2 INCLUDED $30.42 $40.56 $50.72 $60.85 $70.99 $81.14
3 $24.21 $38.28 $5233 $66.41 $80.48 $94.55 $108.61
4 $28.14 $46.47 $64.77 $83.09 $101.40 $119.74 $138.05
6 $35.98 $61.83 $87.68 $113.53 $139.39 $165.21 $191.07
8 $43.821 $77.19 $110.591 $143.951 $177.32 $210.701 $244.06
The rates shown above include the monthly container rental fee and are the same for bins
and garwoods, when volume is identical..
WHITE OFFICE PAPER COLLECTION
White office paper can be commingled with other recycling in your blue waste wheeler.
In office collection of white/colored paper is available at $44.28 per hour
POLYSTYRENE COLLECTION
Polystyrene is no longer collected for recycling. It should be thrown away as trash.
Proposed Rate Schedule for Integrated Solid Waste Services effective 8-1-2003
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Attachment 3
Franchise Fee Comparison
Jurisdiction Franchise Fee
SLO County 10%
Grover Beach 10%
Arroyo Grande 10%
Morro Day 10%
Los Osos CSD 10%
Ni omo CSD 100/0
Oceano CSD 10%
Pismo Beach 6%
Cambria_ 6%
Ca ucos 6%
Atascadero 5%
Paso Robles 3%
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