HomeMy WebLinkAbout2021-25 - Adopting an Adjusted Recycling Service FeeRESOLUTION NO. 2021-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING AN
ADJUSTED RECYCLING SERVICE FEE
WHEREAS, the California Integrated Waste Management Act of 1989 ("Act")
codified in the California Public Resources Code Section 40000, et seq. mandates local
governments to reduce the volume of solid waste disposed at landfills;
WHEREAS, as a result, in 1990, the City of Newport Beach ("City") adopted a
recycling service fee as set forth in Newport Beach Municipal Code ("NBMC") Chapter
2.30 (Recycling Service Fee) to cover the cost incurred by the City in satisfying State
mandated recycling requirements;
WHEREAS, the City's cost of compliance with the State's recycling requirements
continue to rise as the State's diversion requirements have risen from 25% when the Act
was enacted to 50% (with a goal of 75% as of the year 2020);
WHEREAS, the Recycling Service Fee was last adjusted in 2009;
WHEREAS, the City recently initiated a fee study to determine the City's current
cost associated with the State diversion requirements;
WHEREAS, the Recycling Service Fee Study, prepared by MGT of America, Inc.
("Recycling Service Fee Study"), analyzed the current residential recycling services costs
under the City's two residential solid waste hauling contracts with CR&R, Inc.;
WHEREAS, at the January 26, 2021 meeting, the City Council approved the
Recycling Service Fee Study which is attached hereto as Exhibit "A" and incorporated
hereby by reference, set a public hearing for March 23, 2021 and directed staff to mail
notices to property owners of the proposed Recycling Service Fee;
WHEREAS, on January 29, 2021, the City mailed notices to the record owner of
each identified parcel subject to the Recycling Service Fee in accordance with Article
XIID, Section C of the California Constitution and California Government Code Section
53750 et seq. ("Proposition 218");
Resolution No. 2021-25
Page 2 of 4
WHEREAS, a telephonic public hearing was held on March 23, 2021, in the City
Council Chambers located at 100 Civic Center Drive, Newport Beach, California due to the
Declaration of a State Emergency and Proclamation of Local Emergency related to
COVID-19. A notice of time, place and purpose of the hearing was given in accordance
with Proposition 218, ten-day advanced publication of the public hearing, and California
Government Code Section 54950, et seq. ("Ralph M. Brown Act"). Evidence, both written
and oral including the counting of protest votes, was presented to, and considered by, the
City Council at this public hearing; and
WHEREAS, following the public hearing held in conformity with Proposition 218,
the City Council determined that no majority protest against the recommended Recycling
Service Fee occurred.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby adopt the Recycling Service Fee of
$5.86 per residential unit per month for residential properties located within Newport
Coast, as shown by the boundaries depicted in Exhibit "B," which is attached hereto and
incorporated by reference that, as of the effective date of this resolution, are serviced
under Contract No. C-3942. Additionally, the City Council does hereby adopt the
Recycling Service Fee of $6.28 per residential unit per month for residential properties
located within the remainder of the City, excluding Newport Coast and Santa Ana Heights,
as shown by the boundaries depicted in Exhibit "B," that, as of the effective date of this
resolution, are serviced under Contract No. C-5649.
Section 2: The Recycling Service Fees set forth in Section 1 of this resolution
are subject to an annual adjustment from April of the prior year to April of the current year
but shall not extend beyond April 1, 2026, for inflation, in accordance with California
Government Code Section 53756. For purposes of adjusting the Recycling Service Fees,
the annual adjustment shall be the change, if any, in the Consumer Price Index for all
consumers in the Los Angeles -Long Beach -Anaheim area (CPI -U) consumer price index,
or any published successor index as published by the Bureau of Labor Statistics of the
Department of Labor. Prior to any adjustment, the City shall provide not less than 30
days' notice before the effective date of the adjustment.
Section 3: The City Council hereby approves the amendment to the Schedule
of Rents, Fines and Fees attached hereto as Exhibit "C" and incorporated herein by
reference. Except as explicitly revised by Exhibit "C," all other provisions of the SRFF
shall continue in full force and effect.
Resolution No. 2021-25
Page 3 of 4
Section 4: The Recycling Service Fee shall not be paid by persons or
businesses whose solid waste is collected by private haulers nor shall any portion of the
fee collected be used to defray expenses that would be incurred by the City in collecting,
hauling, and disposing of solid waste.
Section 5: The Recycling Service Fee prescribed by Resolution No. 2009-86 is
hereby replaced with the Residential Recycling Fee provided herein and Resolution No.
2009-86 is superseded by this resolution.
Section 6: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 7: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 8: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Resolution No. 2021-25
Page 4 of 4
Section 9: This resolution shall take effect on April 1, 2021 and the City Clerk
shall certify the vote adopting the resolution.
ADOPTED this 23rd day of March, 2021.
ATTEST:
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Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
AafoC. Harp
City Attorney
Attachment(s): Exhibit A — Recycling Service Fee Study
Exhibit B — Recycling Service Fee Map
Exhibit C — Schedule of Rents, Fines and Fees Updated
EXHIBIT A
Recycling Service Fee Study
CITY OF NEWPORT BEACH
2020 RECYCLING SERVICES STUDY
15 January 2021
Mr. David A. Webb I Public Works Director
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
SUBJECT: RECYCLING SERVICES FEE STUDY
Dear Mr. Webb:
**i*i M GT
CONSULTING GROUP
At the request of the City of Newport Beach (City), MGT of America Consulting, LLC (MGT) has completed
a study of the Recycling Services fee and with this letter presents staff with the calculations and resulting
fees for consideration. MGT calculated the cost to provide recycling services in the City of Newport Beach
in conformance with well-established cost accounting methodologies.
SCOPE OF SERVICES
The current Recycling Services fee as shown on the Schedule of Rents, Fines, and Fees (SRFF) is $3.00 per
residential unit per month. The City requested that MGT analyze all costs associated with providing
recycling services to Newport Beach residents to determine whether the $3.00 fee is adequately recovering
costs.
MGT has determined that the cost to provide recycling services to Newport Beach residential units is as
follows:
MONTHLY FEE PER RESIDENTIAL UNIT
Excluding Newport Coast $6.28
Newport Coast $5.86
METHODOLOGY
The City provided MGT with the following data used to calculate the costs:
• Staff time associated with the City's recycling program. This includes time spent on program
management and contract oversight. MGT calculated fully burdened labor rates for staff and
multiplied these labor rates by the annual hours spent on the recycling program to determine
annual city staff costs expended on the recycling program.
s*i*i M GT
CONSULTING GROUP
CITY OF NEWPORT BEACH
2020 RECYCLING SERVICES STUDY
♦*i*i M GT
CONSULTING GROUP
• Annual Recycling Contract Costs. There are two separate contracts with CR&R Incorporated, one
for Newport Coast and the other for the remaining area of the City provided trash services.
• Percentage of waste diverted. This information is used to determine what percentage of the
contract expense is associated with recycling (diverted) vs sent to landfills. These percentages are
used to reduce the contract expense to that which is only associated with the recycling program.
® Number of residential units associated with each of the two contracts: the number of units in
Newport Beach excluding Newport Coast, and the number of units in Newport Coast. This
information is used to determine the cost per residential unit, separated by contract.
STUDY RESULTS
The following represents a summary of the data on which the proposed fee was calculated:
ANNUAL STAFF EXPENSE
Senior Management Analyst PW - Refuse $147.95 120.00
Code Enf Officer Trainee PW - Envtal Liability $45.41 240.00
Total annual cost for staff time: $28,651.60
ANNUAL RECYCLING CONTRACT COSTS
Excluding Newport Coast $ 4,160,688 48.36% $ 2,012,108.72
Newport Coast $ 741,164 40.65% $ 301 283.17
Total annual recycling contract costs: $2,313,391.88
Grand total annual costs for Residential Recycling program: $2,342,043.48
NUMBER OF RESIDENTIAL UNITS
Excluding Newport Coast 27,017
Newport Coast 4,335
Total residential units: 31,352
**s♦i M GT
CONSULTING GROUP
CITY OF NEWPORT BEACH
2020 RECYCLING SERVICES STUDY
ANNUAL COST PER RESIDENTIAL UNIT
s*i*s M GT
CONSULTING GROUP
Excluding Newport Coast $0.92 $74.48 $75.40
Newport Coast $0.86 $69.50 $70.36.
MONTHLY FEE PER RESIDENTIAL UNIT
Excluding Newport Coast $6.28
Newport Coast $5.86
SUMMARY STATEMENTS AND CITY RECOMMENDATIONS
The proposed fee for Newport Coast residential units is $5.86 per residential unit per month and the
proposed fee for the remaining residential units in the City, currently receiving recycling services, is $6.28
per residential unit per month.
The City confirmed that all items included in the calculation are solely related to operational costs incurred
by the City in satisfying state -mandated recycling requirements. Costs related to organics are excluded
from these calculations.
Please do not hesitate to contact us if you have any questions or comments about this study. We look
forward to continuing to be of service to the City of Newport Beach.
Sincerely,
ErivL L-PaUtow
Erin L Payton
Director, MGT Financial Services
MGT of America Consulting, LLC
Cell: 503.358.3808
epayton@mgtconsulting.com
s*♦*♦ MGT
CONSULTING GROUP
EXHIBIT B
Recycling Service Fee Map
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EXHIBIT C
Schedule of Rents, Fines, and Fees Updated
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STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2021-25 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 23rd day of March, 2021; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Brad Avery, Council Member Noah Blom, Council Member Joy Brenner,
Council Member Diane Dixon, Council Member Will O'Neill
NAYS: Mayor Pro Tem Kevin Muldoon
ABSENT: Council Member Duffy Duffield
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 241h day of March, 2021.
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Leilani I. Brown
City Clerk
Newport Beach, California