HomeMy WebLinkAbout07 - Recycling Service FeeCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 7
June 22, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
David E. Niederhaus, Director, 949 - 644 -3055, dniederhaus(a), city. newport -
beach.ca.us
SUBJECT: Recycling Service Fee
ISSUE:
Should the City approve Resolution No. 2004- authorizing the recycling service fee
to be set at $2.81 per month per residential unit effective July 1, 2004 and rescind
Resolution No. 2003 -38?
RECOMMENDATION:
Approve Resolution No. 2004- authorizing the recycling service fee to be set at
$2.81 per month per residential unit effective July 1, 2004.
Rescind Resolution No. 2003 -38.
DISCUSSION:
Background:
Since 1990, the City Council has authorized an annual recycling service fee to fund the
additional expenses associated with meeting the State recycling mandates.
The State required cities to achieve a 25% recycling rate by December 31, 1995 and a
50% rate by December 31, 2000. A fine of up to $10,000 per day could be imposed on
cities that fail to make the 50% mandate or a reasonable effort. City recycling rates for
1995 and 2000 were 51% and 49 +% respectively. The recycling rate for 2001 was
49.7 %. The State granted the City attainment of the recycling goals in 2000 and 2001.
The recycling rate for 2002 was 52 %. The rate for 2003 will be calculated in mid -2004.
Recycling Service Fee
June 22, 2004
Page 2
City Resolution 90-47 set the first recycling service fee at $0.74 per month for FY 90 -91.
During the subsequent thirteen years, the fee has slowly increased to $2.66 per month
in 2003.
The only exception was the recycling service fee for 1997, which was $1.28 per month.
It reflected a one time monthly rebate to residents receiving monthly City refuse
collection services directed by the Council as a result of savings achieved by the
renegotiation of the recycling contract.
The current recycling service fee is $2.66 per month per residence and was adjusted by
Council resolution in June 2003.
Historically, the calculation of the fee has been tied to the difference of costs between
landfill disposal and recycling expenses. Miscellaneous recycling related costs (public
education, waste studies, recycling plan development, and staff time) were added to this
total, which is then divided by the number of residential units serviced by City collection
crews.
The only factors that will affect the proposed FY 04 -05 amount of the recycling service
fee is a CPI adjustment of 2.6% (which is a provision of the recycling contract) and staff
salary and benefits increases. Landfill disposal fees remain the same for FY 04 -05
following a 1997 County -City agreement that stabilized landfill fees for a ten -year
period.
Staff estimates that approximately 40,500 tons of solid waste will be generated by City
residents using City trash services in FY 04 -05. The cost to collect, transfer, recycle
and dispose of the solid waste is estimated to be $5,498,783. Of that total, up to
$1,681,000 will be paid to CRT, Inc. for transferring, recycling, and disposal of the solid
waste stream. $851,775 of the $1,681,000 is the additional cost solely attributable to
recycling activities or programs and will be collected as a recycling service fee from
26,793 residences on a monthly basis.
The City currently pays $40.79 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 2.6%
results in a new CRT, Inc. fee of $41.49 per ton. The CPI adjustment is multiplied by a
lower base rate ($27.04 per ton) and not the $40.79 rate. The use of the base rate is a
part of the contract language that staff sought to apply CPI increases only to the CRT,
Inc. base net cost of operation and not to County landfill fees.
The attached resolution provides for a recycling service fee of $2.81 per month for FY
04 -05 and a rescinding of Resolution No. 2003 -38.
Recycling Service Fee
June 22, 2004
Page 3
Newport Coast residents have not paid the recycling surcharge, but we expect to
resolve this soon. The City pays for residential refuse collection services for all Newport
Coast single - family residences.
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 City residential refuse collection costs during the annual recycling
surcharge process.
Accordingly, the monthly refuse collection costs are published as follows:
FY 00 -01 (Actual) $13.31 /per residence
FY 01 -02 (Actual) $13.33/per residence
FY 02 -03 (Actual) $13.40 /per residence (Includes Newport Coast)
FY 03 -04 (Actual) $14.20 /per residence (Includes Newport Coast)
FY 04 -05 (Proposed) $15.12/per residence (includes Newport Coast)
Prepared by:
Jere ammond,
Mandtement Assistant
Submitted by:
David E. Niederhaus,
Director
Attachments: Resolution No. 2004 -_ Modifying a Recycling Surcharge and
Rescinding Resolution No. 2003 -38.
RESOLUTION NO. 2004-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH MODIFYING A RECYCLING SERVICE FEE
AND RESCINDING RESOLUTION NO. 2003-38.
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 50% of the solid waste stream by the end of
2000; and
WHEREAS, the Newport Beach City Council has enacted an ordinance which authorizes the
imposition of a recycling service fee 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 40,500 tons of solid waste
will be generated during Fiscal Year 2004 -05, that the cost of collecting, hauling, recycling, and
disposing of that amount of solid waste would be $5,498,783, that the fees to be paid to CRT Inc.
pursuant to the Recycling Agreement will be $1,681,000 and that the additional cost attributable
solely to recycling is $851,775; and
WHEREAS, the City Council has determined that the residential solid waste stream
collected by City personnel is generated by, at most, 26,793 households. Accordingly, the additional
costs incurred by the City in conjunction with the recycling program can be recovered by imposing a
recycling service fee of $2.81 per month on persons receiving trash services from the City. This fee
represents the minimum amount the City could charge to recover the estimated reasonable cost to
provide recycling services for the City.
follows:
NOW, THEREFORE, the City Council of City of Newport Beach resolves as
Pursuant to the provisions of Chapter 2.30 of the Newport Beach Municipal Code, a
recycling service fee of $2.81 per month is hereby imposed, effective July 1, 2004.
2. The recycling service fee 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 fee shall be the responsibility of the
owner of the property; and
3. The recycling service fee 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 solid waste.
4. Resolution No. 2003 -38 is hereby rescinded.
ADOPTED this 22 "d day of June, 2004.
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSTAINED, COUNCIL MEMBERS
ABSENT, COUNCIL MEMBERS
MAYOR
ATTEST:
CITY CLERK
�\9
RESOLUTION NO. 2004- 55
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH MODIFYING A RECYCLING SERVICE FEE
AND RESCINDING RESOLUTION NO. 2003-38.
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 50% of the solid waste stream by the end of
2000; and
WHEREAS, the Newport Beach City Council has enacted an ordinance which authorizes the
imposition of a recycling service fee 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 40,500 tons of solid waste
will be generated during Fiscal Year 2004 -05, that the cost of collecting, hauling, recycling, and
disposing of that amount of solid waste would be $5,498,783, that the fees to be paid to CRT Inc.
pursuant to the Recycling Agreement will be $1,681,000 and that the additional cost attributable
solely to recycling is $851,775; and
WHEREAS, the City Council has determined that the residential solid waste stream
collected by City personnel is generated by, at most, 26,793 households. Accordingly, the additional
costs incurred by the City in conjunction with the recycling program can be recovered by imposing a
recycling service fee of $2.81 per month on persons receiving trash services from the City. This fee
represents the minimum amount the City could charge to recover the estimated reasonable cost to
provide recycling services for the City.
NOW, THEREFORE, the City Council of City of Newport Beach resolves as
follows:
1. Pursuant to the provisions of Chapter 2.30 of the Newport Beach Municipal Code, a
recycling service fee of $2.81 per month is hereby imposed, effective July 1, 2004.
2. The recycling service fee 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 fee shall be the responsibility of the
owner of the property; and
3. The recycling service fee 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 solid waste.
4. Resolution No. 2003 -38 is hereby rescinded.
ADOPTED this 22 "d day of June, 2004.
AYES, COUNCIL MEMBERS Heffernan, Rosansky, Adams, Bromberg, Webb,
Nichols, Mayor Ridgeway
NOES, COUNCIL MEMBERS
ABSTAINED, COUNCIL MEMBERS
ABSENT, COUNCIL MEMBERS
ATTEST:
k&71 mi AW AI'2
CITY CLERK
u
MAYO
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2004 -55 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the
22nd day of June, 2004, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 23rd day of June, 2004.
(Seal)
,2fl" M, kwh�-
City Clerk
Newport Beach, California