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HomeMy WebLinkAbout05 - Recycling Surcharge. City Council Agenda Item No. 5 June 14, 1999 TO: Mayor and City Council FROM: General Services Director SUBJECT: Recycling Surcharge Recommendation Approve the attached resolution authorizing the recycling surcharge to be set at $2.17 per month per residential unit effective July 1, 1999. Background Since 1990, the Council has authorized an annual recycling surcharge to fund the . additional expenses associated with meeting the recycling mandates of A13939. Resolution 90 -47 set the first recycling surcharge at $0.74 per month for FY 90 -91. During the subsequent eight years, the recycling surcharge slowly increased to $2.10 per month in 1998. The recycling surcharge for 1997 was $1.28 per month and reflected a one time monthly rebate directed by the Council as a result of savings achieved by the renegotiation of the recycling contract. The current recycling surcharge is $2.10 per month per residence and was adjusted with Council approval in June 1998. Historically, the calculation of the recycling surcharge has been tied to the difference of costs between landfill disposal and recycling expenses. Miscellaneous recycling related costs were added to this total which is then divided by the number of units serviced. Only two factors will effect the proposed FY 99 -00 amount of the surcharge: a CPI adjustment of 1.4 %, which is a provision of the recycling contract, and an estimated 1,000 ton increase in the amount of solid waste to be collected and recycled. Landfill fees remain the same for FY 99 -00 following a County-City agreement that stabilized landfill fees in 1997. Discussion The City currently pays $37.22 per ton of solid waste to CRT Inc. of Stanton for processing our solid waste stream, recycling a minimum of 25% of the waste, and transporting and disposing of the residue in a County landfill. A CPI adjustment of 1.4% results in a new CRT Inc. fee of $37.55 per ton. Using these factors, the monthly recycling surcharge was calculated to be $2.17 per residential unit for FY 99 -00. The new recycling surcharge will generate approximately $711,725 during FY 99 -00. The attached resolution provides for a recycling surcharge of $2.17 for FY 99 -00. Annual Cost Disclosure - The Orange County Grand Jury conducted a study of "Solid Waste Reduction Programs" in late 1997. The Grand Jury recommended that all cities in the County publish an annual cost disclosure of refuse collection activities to their residents. As a result of an earlier staff report, Council directed on April 27, 1998 the full disclosure of refuse collection costs during the annual recycling surcharge process. 11 Accordingly the refuse collection costs are published as follows: FY 96 -97 (Actual) $ 12.52 /per residence • FY 97 -98 (Actual) $ 12.28 /per residence (Recycling contract rebate) FY 98 -99 (Estimated) $ 12.87 /per residence (Large increase in refuse tonnage) FY 99 -00 (Proposed) $ 12.77 /per residence Very respectfully, David E. Niederhaus DEN /mhl Attachment: Resolution 99- 0 M RESOLUTION NO. 99- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH MODIFYING A RECYCLING SURCHARGE AND RESCINDING RESOLUTION NO. 98-39. WHEREAS, the State of California has determined that the amount of solid waste generated in the State, coupled with the diminishing landfill space and the potential adverse environmental impacts of landfilling, create an urgent need for State and Local agencies to enact and implement aggressive new integrated waste management programs; and WHEREAS, the Legislature has mandated each City and County to reduce the amount of solid waste disposed of in landfills by recycling at least 25% of the solid waste stream; and WHEREAS, the Newport Beach City Council has enacted an ordinance which . authorizes the imposition of a recycling surcharge subject to certain limitations; and WHEREAS, the City of Newport Beach has entered into a written contract with CRT Inc. pursuant to which the latter will accept the City's waste stream, recycle at least 25% of the contents, and transport the remaining waste to a disposal site approved by law. The City Council has determined that contracting with a private recycler represents the most economical way of satisfying recycling requirements, will ensure that more waste is recycled than pursuant to curbside programs which require resident's sorting of recyclables, and is much less costly than acquiring the equipment and hiring the personnel necessary to implement a curbside recycling program; and WHEREAS, the City Council has determined that approximately 43,000 tons of solid waste will be generated during Fiscal Year 1999 -00, that the cost of collecting, hauling, recycling, and disposing of that amount of solid waste would be $4,189,095, that the fees to be paid to CRT Inc. pursuant to the Recycling Agreement will be $1,614,660 and that the . additional cost attributable solely to recycling is $711,725; and WHEREAS, the City Council has determined that the residential solid waste stream collected by City personnel is generated by, at most, 27,332 households. Accordingly, the additional costs incurred by the City in conjunction with the recycling program can be recovered by imposing a surcharge of $2.17 per month per household. This surcharge represents the minimum amount the City could charge with the expectation of deferring all, or substantially all, of its recycling expenses. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Newport Beach as follows: 1. Pursuant to the provisions of Chapter 2.30 of the Newport Beach Municipal Code, a recycling surcharge fee of $2.17 per month is hereby imposed, effective July 1, 1999. 2. The recycling surcharge of $2.17 per month shall be the obligation of the person or persons responsible for the payment of water service if water is supplied to the property by the City of Newport Beach and, if water is not supplied by the City of Newport Beach, the surcharge shall be the responsibility of the owner of the property; and • 3. The recycling surcharge shall not be paid by persons or businesses whose rubbish 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 refuse absent a recycling program. 4. Resolution No. 98 -39 is hereby rescinded. ADOPTED this _ day of 1999. MAYOR ATTEST: CITY CLERK El