HomeMy WebLinkAbout18 - Conduct a Proposition 218 Public Hearing and Consider a Residential Recycling Fee Rate Increase - LetterCITY OF NEWPORT BEACH
592 Superior Avenue
Newport Beach, California 92663
949 644-3055 1 949 650-0747 FAX
Dear Newport Beach Resident,
January 29, 2021
I am reaching out to inform you of a proposed change to the City's current recycling service
fee listed in the Schedule of Rents, Fines and Fees (SRFF). A combination of factors has
necessitated a study of the residential Recycling Service Fee related to solid waste
collection. The City's current Recycling Service Fee is $3 per residential unit per month
and has not been studied or otherwise updated since 2009. Additionally, there is no
Recycling Services fee applied to residential units within the Newport Coast area, although
the City still has recycling related cost for this area. This is because the City's Recycling
Service fee was not applied as part of the annexation of Newport Coast into the
City in 2001.
The requirements for residential refuse recycling have increased per the initial
implementation of State Law AB 939 (Integrated Waste Management Act of 1989). This
has resulted in the operating costs associated for the collection and process of recyclable
materials to increase over time. The current fee no longer accurately reflect these cost
increases.
In 2020, with the help of an independent financial consultant, it was determined that a
proposed Recycling Service fee increase is needed. The proposed fee adjustments are to
raise the current $3.00 monthly recycling service fee that is currently applied to residential
properties within the City (excluding Newport Coast) to $6.28 per residential unit per
month, and also now apply a Recycle Service Fee of $5.86 per residential unit per month
to the residential properties within the Newport Coast Area to help offset the cost of
providing these state required recycling collection and processing services.
If approved by City Council, the change in Recycling Service Fee will become effective
April 2021.
Should you need more information about the proposed changes, please visit our website at
https://newportbeachca.gov/govemment/departments/2021-residential-recycling fee -
study
Respectfully,
David A. Webb, Director
Public Works Department
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NOTICE OF PUBLIC HEARING OF PURPOSED RECYCLING SERVICE
RATE INCREASE
Notice is hereby given that the City Council of the City of Newport Beach ("City") will conduct a
public hearing on Tuesday March 23, 2021 at 6:30 p.m. in the City Hall Council Chambers at 100
Civic Center Drive, Newport Beach, CA 92660, where it will consider adopting a rate increase to
the existing Recycling Service Fee that the majority of City residents (except those in the Newport
Coast area) currently pay, and also adopting a new Recycling Service Fee for residents of the
Newport Coast area. The proposed fee increases are the result of a recent fee study completed by
the City's consultant, MGT of America, an independent financial consulting firm. Results of this
study found adjustments to the Recycling Service Fee are needed so as to recover the cost
associated with State mandated recycling efforts for providing residential refuse recycling
services. The fee calculations include the recycling related cost of current residential waste service
contracts with CR&R Incorporated, and for City staff costs for the majority of the City's residents
(excluding the Newport Coast area), as well as a separate fee calculation for resident of Newport
Coast.
BACKGROUND
In accordance with City of Newport Beach Municipal Code Chapter 6.04, Garbage, Refuse, and
Cuttings, the City covers the cost and expense of collecting, hauling away and disposing of solid
waste with property tax revenues through the City's General Fund. As a result of changes in state
law, in 1990, the City Council adopted Ordinance No. 90-6 establishing a Recycling Service Fee
to recover the costs incurred by the City in satisfying State mandated recycling requirements. The
City's current Schedule of Rents, Fines and Fees includes a Recycling Service Fee which was last
updated on December 8, 2009 and has since remained at $3 per residential unit per month.
The Recycling Service Fee was recently studied by the City's fee consultant, MGT of America.
The Recycling Service Fee is a cost of service fee based solely on recovery of those operational
costs associated with collection of recyclable materials in accordance with state mandates. Each
fee rate is based on the annual contract costs, the diversion rate for recyclable material, the number
of households subject to the fee, and City staff time related to contract management and program
administration. Because the City currently has are two separate residential refuse collection
contracts with CR&R Incorporated, one for the majority of the City (excluding the Newport Coast
area) and then another just the Newport Coast area to provide residential trash collection services,
the study resulted in two different calculations and resulting Recycling Service fees.
PROPOSED RATES FOR RECYCLING SERVICE FEE
With assistance from the consultant, the City reviewed the current residential Recycling Service
Fee and developed a detailed fee study calculation. For clarification, the majority of the City
(excluding the Newport Coast area) and the Newport Coast area have two separate residential
refuse collection contracts resulting in two separate calculations and Recycling Service fees. Each
fee rate is based on annual residential contract costs that include diversion rate for recyclable
material processing, number of households subject to the fee, staff time related to contract
management and program administration. City recommends the following changes:
The City (excluding the Newport Coast area):
0 The current fee for the City area is $3.00 per residential unit per month
The proposed fee for the City area (excluding Newport Coast) would be $6.28 per
residential unit per month.
Newport Coast Area:
• Recycling Services fee was not included as part of annexation
• The proposed Recycling Service fee for residential units in Newport Coast would be
$5.86 per residential unit per month.
* Both fees will include future annual CPI increases
Customers can review the Information regarding the 2020 Residential Recycling Fee Study will
be provided on the City of Newport Beach website at:
https://newportbeachca. ov/,government/departments/2021-residential-recycling-fee-study or the
City's administrative office at 100 Civic Center Drive, Newport Beach, CA 92660.
PUBLIC HEARING
Any current record owner or responsible tenant of a residential parcel upon which refuse and
recycling collection services are conducted, and where Recycling Service Fees are proposed to be
increased, may submit a written protest to the proposed rate increases to either the City's, or the
Newport Coast Recycling Service Fees; provided, however, only one protest will be counted per
identified parcel. Each protest must: (1) be in writing; (2) state if the protest is submitted in
opposition to the imposed/increased Recycling Service Fee rate; (3) provide the location of the
identified parcel (by service address or assessor's parcel number); and (4) include the name and
signature of the person who owns the effected residential parcel submitting the written protest.
Written protests may be submitted by mail or in person to the City of Newport Beach office, To
the attention of the City Clerk, 100 Civic Center Drive, Newport Beach, CA 92660, or in person
at the Public Hearing (see date, time, and location above). All written protests must be received
prior to the conclusion of the public comment portion of the public hearing. Any protest submitted
via email, facsimile, or other electronic means will not be accepted as a formal written protest. For
any protest submittal, whether mailed or submitted in person, please identify on the front of the
envelope, that the enclosed letter is for the Public Hearing on Recycling Service Fee Proposed
Rate Increases. The City Council will consider all written protests timely submitted and hear and
consider all public comments made at the public hearing. Oral comments at the public hearing
will not qualify as formal protests unless accompanied by a written protest. At the conclusion of
the public hearing, the City Council will determine whether to adopt the proposed rate increases
described in this notice. If, after the close of the public hearing, written protests against the
proposed rate increases and as outlined above are not presented by a majority of the record owners
or responsible tenants of the identified parcels upon which they are proposed to be imposed, the
City Council will be authorized to impose the rate increases. If you have any questions regarding
the information provided in this notice, or the rates applicable to your property, please contact the
Public Works Department at 949-644-3055.
SPECIAL NOTICE REGARDING COVID-19
Given the Declaration of a State Emergency and Proclamation of Local Emergency related to
COVID-19, we recommend that you submit your questions and comments in writing for City Council
consideration by sending them to ci . clerk&newportbeachca.gov. To give the City Council adequate
time to review your questions and comments, please submit your written comments by Monday,
March 22, 2021, at 5:00 p.m. In addition, members of the public will have the ability to participate
in this meeting telephonically. Please review the Agenda for further instructions. The Agenda, staff
report and corresponding documents will be posted to the City's website at
www.newportbeachca.gov, by end of business day on Friday March 19, 2021. While the City does
not expect there to be any changes to the above process for participating in this meeting, if there is a
change, the City will post the information as soon as possible to the City's website. The City of
Newport Beach thanks you in advance for continuing to take precautions to prevent the spread of the
COVID-19 virus. If you are unable to participate in the meeting via the process set forth in the agenda,
please contact the City Clerk at 949-644-3005 or cityclerkknewportbeachca. og_v and our staff will
attempt to accommodate you.