HomeMy WebLinkAbout07 - Belcourt Park and Bonita Canyon Residential Refuse Collection ServiceQ SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
March 14, 2023
Agenda Item No. 7
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Micah Martin, Deputy Public Works Director,
mmartin@newportbeachca.gov
PHONE: 949-644-3059
TITLE: Belcourt Park and Bonita Canyon Residential Refuse Collection
Service
ABSTRACT:
The City of Newport Beach (City) provides residential refuse services to most
single-family households within the City. Two neighborhoods currently use independent
residential refuse service: Belcourt Park (Chatham Court), and Bonita Canyon. These two
neighborhoods are currently being serviced by Waste Management of OC and are not in
compliance with SB1383, nor does the City have a Residential Refuse Franchise with
Waste Management of OC.
Staff requests City Council direction to either pursue incorporation of Belcourt Park and
Bonita Canyon residential neighborhoods into the City's residential refuse contract with
CR&R or to continue to pursue corrective measures with Waste Management of OC to
bring them into compliance.
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a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Direct staff to establish residential refuse service with the Belcourt Park and the Bonita
Canyon neighborhoods, provided they are willing, under the existing Agreement for
the Collection, Transportation, Processing and Diversion of Residential Recyclable
Materials, Food Scraps, Green Waste and Collection, Transportation and Disposal of
Municipal Solid Waste between the City of Newport Beach and CR&R Inc. (Contract
No. 8823-1), including requiring payment of the current $6.77 per household per
month Recycling Service Fee; and
c) Assign authority to the City Manager to approve and execute the necessary contract
documents with CR&R Inc. so as to provide residential refuse collection and recycling
to the Belcourt Park and the Bonita Canyon neighborhoods.
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Belcourt Park and Bonita Canyon Residential Refuse Service
March 14, 2023
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DISCUSSION:
Senate Bill 1383 requires cities to ensure residential organics waste recycling services
are provided, which includes collecting and diverting of recyclable materials, food scraps
and landscaping waste away from landfills. Therefore, the City has implemented a
three -cart collection service to allow residents to source separate these organic materials.
Historical Information:
In 1959, Newport Beach voters approved an initiative measure requiring the City to use
ad valorem property tax revenues to pay for the cost of collecting, hauling and disposing
of garbage and refuse. Curbside refuse collection was provided through property tax
revenue to residential and commercial properties. In 1996, Measure Q `Costs Defrayed
from Ad Valorem Tax Revenue' was passed. This measure allowed for continued use of
property tax to provide curbside refuse collection but limited the availability of the service
to existing residential properties or those to be built within the City boundaries as of
November 1, 1996. This measure did not affect residential projects using private haulers
to collect and dispose of refuse.
Belcourt Park was part of the Jamboree Road Annexation in 1958, but the actual tract
development was completed before Measure Q was passed. Although the development
was within the intent of the Measure Q service area, the original developer agreed to the
condition of approval that all private facilities, including refuse, would be maintained by
the Homeowners Association (HOA). The HOA currently uses a private hauler, Waste
Management of OC.
Bonita Canyon was part of the Bonita Canyon Annexation in 1997. This annexation
transpired after the passing of Measure Q and thus City -paid refuse service was not
provided. The development is currently serviced by a private hauler, Waste Management
of OC. After discussion with Waste Management of OC, this area was originally within the
purview of County of Orange and Waste Management of OC was the exclusive hauler for
unincorporated areas. They maintained service in this area after the annexation by
separate agreement with the HOA.
The private refuse service provided to these neighborhoods was brought to light during
the recent reworking of the City's entire residential refuse and recycling program to ensure
that the City maintains compliance with State recycling and greenhouse gas reduction
mandates. In discovering this, the City accounted for potential service inclusion of these
neighborhoods, provided the City Council wanted to offer and the HOAs would like to be
included, within the CR&R Inc. contract for residential refuse and recycling: "Method for
Adjusting Contractor's Compensation for Addition of Specified Neighborhoods and for
New Residences Constructed on Vacant Land During the Term of the Agreement". This
created a pathway to bring these neighborhoods into the City's residential refuse contract
without requiring a contract amendment.
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Belcourt Park and Bonita Canyon Residential Refuse Service
March 14, 2023
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As neither the Belcourt Park nor Bonita Canyon neighborhoods are currently serviced
under the City's exclusive residential refuse contract with CR&R, these locations are also
not charged the Residential Recycling Service Fee. Resolution No. 90-47 established the
Recycling Service Fee, codified as NBMC 2.30 Recycling Service Fee. The intent of this
fee is to offset the costs and expenses incurred by the City to meet State -mandated
recycling requirements. The most recent review and increase of the Recycling Service
Fee was conducted in 2021. On July 8, 2022, in compliance with Proposition 218, the City
mailed notices to the property owner of each parcel identified in the Recycling Fee Report,
including those of Belcourt Park and Bonita Canyon. On July 26, 2022, a public hearing
was held to allow the property owners to raise objections or protest placement of the
Recycling Services Fee on the tax roll. After the public hearing, Council adopted the
Recycling Fee Report and imposed collection of the revised Recycling Service Fee.
If the City Council so desires to include the Belcourt Park and Bonita Canyon
neighborhoods within the current residential refuse contract with CR&R, thus then
providing complimentary residential refuse services at the same level of service as the
other single-family households within the City, the City will incur additional, ongoing
monthly costs. The City will also correspondingly issue a notice to the neighborhoods
indicating the $6.77 per month Recycling Service Fee will also be applicable and charged
to each residential household. The City would provide three -cart residential refuse service
to these residential properties, in addition to ancillary services included in the residential
services contract. City staff would also need to conduct outreach to the residents, HOAs,
and property managers in coordination with CR&R to clearly define the services provided
and the method of changing their service provider.
Per the City's residential refuse contract with CR&R, each household added in FY 2022-
23 would cost $24.44 per month, with future years' cost being adjusted per the terms of
the current City contract. Belcourt Park would add 54 households to this contract and
Bonita Canyon would add 288 households. The anticipated FY 2022-23 contract cost
increase for adding in these two neighborhoods would be $8,358.48 per month.
As mentioned above, in addition to being provided free residential refuse service, these
residences would then also be required to pay the $6.77 per month Recycling Service
Fee. The anticipated FY 2022-23 revenue from added fee collection for these two
neighborhoods would be $2,315.34 per month.
The inclusion of the 54 households in Belcourt Park and the 288 households in Bonita
Canyon would thus add an anticipated net cost of $6,043.14 monthly, or a $72,517.68
annual cost to the total CR&R Residential Refuse contract.
If the Council decides not to incorporate these two areas, and one or both are not desiring
to be included within the City's complimentary residential refuse service, staff will need to
work with the HOA and their contracted refuse hauler to establish a SB 1383-compliant
residential refuse and recycling program immediately, as well as insure that their private
hauler has the appropriate and current refuse franchise with the City. Residents of these
neighborhoods would then continue to pay monthly refuse fees to their private hauler.
The City Recycling Service Fee would not be required.
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Belcourt Park and Bonita Canyon Residential Refuse Service
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FISCAL IMPACT:
The adopted budget includes sufficient funding to support the addition of both
neighborhoods for this fiscal year due to a one-time $180,400 service credit received from
CR&R. It will be expensed to the Residential Refuse Collection account in the Public
Works Department, 0108051-851006. The City Refuse budget will need to be increased
accordingly in future fiscal years if one or both neighborhoods are included.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action 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, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Location Map of Belcourt Park and Bonita Canyon
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