CC RES 2016-054 RESOLUTION NO. 2016-54
A RESOLUTION OF THE CITY COUNCIL CITY OF THE
CITY OF RANCHO PALOS VERDES APPROVING AN
INCREASE IN FEES CHARGED BY EDCO FOR
RESIDENTIAL SOLID WASTE COLLECTION SERVICES
AND ESTABLISHING A FIVE-YEAR ADJUSTMENT
FORMULA
WHEREAS, the City of Rancho Palos Verdes ("City") entered into an exclusive
franchise agreement with EDCO Disposal Corporation ("EDCO") for residential solid
waste management services on or about November 24, 2009, which was thereafter
amended for the first time on June 30, 2015 (the agreement, as amended, is referred to
herein as "Agreement"); and,
WHEREAS, the Term of the Agreement expires on June 30, 2020, but the
Agreement also includes an option for seven (7) one-year extensions, which could extend
the Term until June 30, 2027; and,
WHEREAS, Exhibit 4 of the Agreement establishes initial maximum rates for July
1, 2010, through June 30, 2011 ("Maximum Rates"); and,
WHEREAS, Section 6.3 of the Agreement allows EDCO to request annual
adjustments to the Maximum Rates by submitting a written request to the City by March
30 of each year; and,
WHEREAS, Section 6.4 and Exhibits 5A, 5B, and 5C of the Agreement establish
a method for adjusting the Maximum Rates according to a weighted averaging of the
annual change in EDCO's Service Component and Disposal Component costs, with the
annual change in Service Component costs capped at 4% and the annual change in
Disposal Component costs capped at 8% (collectively, "Agreement Adjustment
Formula"); and,
WHEREAS, requested adjustments must meet the requirements of the Agreement
Adjustment Formula; and,
WHEREAS, the Agreement is subject to all applicable laws; and,
WHEREAS, Article XIIID of the California Constitution ("Proposition 218")
establishes required procedures for increasing properly related fees, including (i) mailing
a written notice of the proposed fee increase ("Notice") to each parcel on which the fee
will be imposed ("Identified Parcels"), and (ii) conducting a public hearing on the proposed
fee increase not less than forty-five (45) days after mailing the notice ("Protest Hearing");
and,
WHEREAS, Proposition 218 requires the City Council to consider all protests
against the proposed fee increase, and establishes that if written protests against the
Resolution No. 2016-54
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proposed fee increase are presented by a majority of owners of the Identified Parcels, the
City Council shall not approve the fee increase; and,
WHEREAS, protests totaling 7,572 would constitute a majority of owners of
Identified Parcels (a "Majority Protest"); and,
WHEREAS, Proposition 218 and Government Code section 53756 allow the City
Council to adopt a schedule of fee adjustments, including a formula for adjusting the fees,
for a period not to exceed five years ("Five-Year Adjustment Formula"); and,
WHEREAS, the adoption of the Five-Year Adjustment Formula by the City Council
is subject to the same procedures as a fee increase; and,
WHEREAS, EDCO requested a fee increase in March 2016; and,
WHEREAS, City staff and City's solid waste (AB 939) consultant reviewed the
requested fee increase and found that it meets the requirements of the Agreement; and,
WHEREAS, the City desires to adopt a Five-Year Adjustment Formula that is
identical to the Agreement Adjustment Formula; and,
WHEREAS, the City mailed Notices addressing both the proposed fee increase
and the proposed Five-Year Adjustment Formula to all Identified Parcels on September
12, 2016, and published notices of public hearing in the Palos Verdes Peninsula News
on November 3 and 10, 2016; and,
WHEREAS, the City held a Protest Hearing on November 15, 2016, and
considered all protests against the proposed fee increase and Five-Year Adjustment
Formula; and,
WHEREAS, the City's Municipal Code section 8.20.270 states that "The city
council may, by resolution or an approved collection agreement, place a limit on the rates
authorized collectors may charge to residential householders and commercial business
owners for the collection of solid waste and recyclable materials. No collector shall charge
any rate or fee which is greater than the maximum rate permitted by the city council."
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS
FOLLOWS:
Section 1. The foregoing Recitals are hereby found to be true and correct and
incorporated herein by this reference.
Section 2. Following a duly held Protest Hearing, conducted according the Protest
Hearing Procedures attached hereto as Exhibit A, and occurring not less than forty-five
(45) days after mailing of the Notice to the Identified Parcels, the total number of valid
protests, as determined by the Protest Hearing Procedures, is 81 which amount is not
sufficient to constitute a Majority Protest.
Resolution No. 2016-54
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Section 3. The Council hereby adopts the fee increase requested by EDCO, as
shown in Exhibit B hereto, which increase shall be effective on January 1, 2017.
Section 4. Pursuant to Proportion 218, the Council finds as follows:
a) Revenues derived from the increased fees do not exceed the funds required
to provide the solid waste management services provided by EDCO. The costs for refuse
service are established by the Agreement, which was competitively procured and
negotiated with EDCO as the lowest-cost responsive contractor for residential refuse
collection and disposal services.
b) Revenues derived from the fees are not used for any purpose other than
that for which the fee was imposed. The fees collected are used to pay EDCO for the
refuse collection and disposal services it provides to the City's residential customers.
c) The amount of the fee upon any parcel does not exceed the proportional
cost of the service attributable to the parcel. EDCO proposes that the current refuse rates
are reasonably proportional and cost-based, and meet the general requirements of
fairness and equity under Proposition 218.
d) No fee is imposed for solid waste management services unless the service
is actually used by, or immediately available to, the owner of the property in question.
The fees are only imposed on properties that either use the solid waste management
services, or to which the solid waste management services are available.
Section 5. The Council hereby adopts the Five-Year Adjustment Formula, which
shall be identical to the Agreement Adjustment Formula, for a period not to exceed five
(5) years, and declares that EDCO shall give notice of any adjustment pursuant to the
Five-Year Adjustment Formula not less than 30 days before the effective date of the
adjustment.
Section 6. This Resolution shall become effective thirty (30) days from its
adoption.
PASSED, APPROVED AND ADOPTED this 15th day of November 2016.
(:>7
May,/
Attest:
rj&
A ' 'g City Clerk
Resolution No. 2016-54
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES )
I, Teresa Takaoka, Acting City Clerk of the City of Rancho Palos Verdes, hereby certify
that the above Resolution No 2016-54 was duly and regularly passed and adopted by the
said City Council at a regular meeting held on November 15, 2016.
Acti City Clerk
Resolution No. 2016-54
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Exhibit A
PROPOSITION 218 RULES FOR HEARING
This is a hearing conducted in accordance with the provisions of Proposition 218 (California Constitution
Art. XIIID). Proposition 218 provides that this measure cannot be approved if there is a majority protest.
Whether there is a majority protest will be determined in accordance with the following:
1. Count the protests against the total number of parcels subject to the fee [Based on APNs or
addresses].
2. Count one protest per parcel.
3. Where there are multiple parties with an interest in the parcel, protests rights are liberally
construed so that a protest by any party counts as a full protest against that parcel. For example,
one protest by a tenant, joint owner, a co-trustee of a trust which is the owner, one of multiple
owners or a single owner— is sufficient. One tenant in a multifamily rental unit (regardless of the
number of units) on one parcel will count as one protest. Condominiums consist of multiple
parcels, so each gets a vote.
4. The written protest must meet the requirements set out in the notice, including that: protests
must be (i) written, (ii) have a clear statement of protest, (iii) identify the legal interest of the
person protesting, and (iv) identify the address or assessor parcel number of the property.
5. Protests shall be in writing except that the City Council shall have the prerogative to count
electronic or verbal protests made at the hearing.
Resolution No. 2016-54
Exhibit A
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Exhibit B
Fees for Solid Waste Management, Effective January 1, 2017
EDCO SINGLE-FAMILY RATES Area 1 EDCO Fees Area 2 (Former UWS Senrice ee Area)
Monthly Cart Service Rates Monthly Manual Service Rates Area 2
One each Refuse,Recycling,and Green Waste Cart,rate based Backyard Service for refuse,recycling,and green waste- $61.30
upon Refuse Cart size: per home per month
Refuse Cart Size: 35-gallon 64-gallon 96-gallon Manure 32 gal customer-provided can:(per can per $22.47
month
Standard Service $19.78 $25.46 $31.12 Monthly Automated Cart Service Rates
Additional Refuse Cart $6.80 $9.07 $11.35 One each Refuse,Recycling,and Green Waste Cart,rate
based upon Refuse Cart size:
Additional Recycling Free Free Free
Cart Refuse Cart Size: 35-gallon 64-gallon 96-gallon
Additional Green Waste $2.27 n/a $4.54
Standard Service,based on $1.9.78 $25.46 $31-.12.
Cart(above three) refuse cart size
Other Cart Rates and Services (Charged in Addition to Monthly Additional Refuse Cart $6.80 $9.07 $11.35
Cart Service Rates)
Additional Recycling Cart free free free
Backyard Service-per home per month,all cart $6.99
Additional Green Waste $2.27 n'a $4.54
sizes Cart(over three carts)
Pup Service-per home per month,all cart sizes $5.83
Other Cart Rates and Services (Charged in Addition to Monthly Cart
Backyard and Pup Services-per home per $9.32 Service Rates)
month, all cart sizes Backyard Service-per home per month,all cart sizes $6.99
Senior Rate Reduction 10% Senior Rate Reduction 10%.
Low-Income Rate 5% Low-Income Rate Reduction 5%
Annual Payment Rate 5%
Annual Payment Rate Reduction 5%
Additional Special Overage Pickup for $5.67
Additional Special Overage Pickup for Automated Cart $5.67
Automated Cart Customers (in excess of two Customers (in excess of two pickups per year),per pickup
pickups per year)
Additional Bulky Item pickups(in excess of $28.36 Additional Bulky Item pickups(in excess of three free $28.36
three free pickups per dwelling unit per year) pickups per dwelling unit per year),per item
Cart Exchange (after free-exchange period) $17.02 Cart Exchange(afterfree-exchangeperiod),per request $17.02
Cart Re-delivery Fee(if carts are pulled for non- $28.36 Cart Re-delivery Fee(if carts are pulled for non-payment, $28.36
payment,one charge for redelivery of all carts) one charge for redelivery of all carts)
Re-Start Fee-after voluntary suspension of $17.02 Re-Start Fee-after volunta ryr s us pens ion of service,if $17.02
carts have not been pulled, per re-start
service,if carts have not been pulled
Resolution No.2016-54
Exhibit B
Page 1 of 2
Multi-Family Customer Accounts
Monthly Bin Rates-Area 1
Container Size No. Pickups per week
Extra
1 2 3 4 5 6 Pickups
2-yard $88.18 $122.88 $157.58 $174.94 $227.02 $241.93 $62.88
3-yard $122.92 $157.62 $192.35 $227.06 $279.09 $290.10 $73.36
3-yard w/compactor $245.82 $315.26 $384.66 $454.11 $558.20 $580.16 $146.75
4-yard $140.33 $174.97 $227.06 $279.13 $340.07 $361.44 $83.85
4-yard w/compactor $280.66 $349.96 $454.13 $558.27 $677.82 $722.90 $169.98
6-yard $175.05 $234.81 $279.14 $331.23 $384.93 $402.43 $125.79
Recycling bin/cart No charge
Other Bin Service Rates
Bin Service No. Pickups per week
1 2 3 4 5 6
Locking Bin Service $6.99 $9.32 $10.48 $11.64 $13.99 $15.14
Scout Vehicles $29.12 $51.25 $73.36 $95.51 $117.63 $139.75
Bin Push-Out $48.93 $87.35 $119.95 ' $147.91 $180.52 $215.45
Service (35 feet or
Additional Rate Per
Service Charges Service
Bin Cleaning Per Bin $51.03
Bin Overage Clean-up(following one written $22.67
warning)Per Clean Up
Additional Bulky Item pickups(in excess of $28.36
three free pickups per dwelling unit per year)
Service Rates-one crew and one $96.39
collection truck(Per Hr.)
Monthly Bin Rates-Area 2(Former UWS Area)
No. Pickups per week
Container Size 1 2 3 4 5 6 Extra Pickups
2-yard $77.54 $108.10 $138.10 $153.57 $198.67 $228.94 $16.85
3-yard $107.89 $138.13 $168.44 $198.71 $245.24 $275.68 $28.10
4-yard $123.09 $153.31 $198.76 $245.28 $296.34 $343.37 $39.33
Manure 3-yard $140.45 $28.10
Recycling bin/cart No charge
Other Bin Service Rates- Per Month
No. Pickups per week
Bin Service 1 2 3 4 5 6
Locking Bin Service $7.99 $9.98 $11.38 $12.78 $14.18 $15.59
Scout Vehicles $29.60 $50.82 $71.62 $92.62 $113.65 $134.68
Bin Push-Out Service $44.90 $79.93 $107.91 $135.93 $163.95 $191.97
(35 feet or further)
Additional Service Charges Rate Per Service
Portuguese Bend Beach Club - beach litter $2,247.11
container collection per month(not to exceed)
Bin Cleaning Per Bin $28.10
Bin Overage Clean-up (following one $28.10
written warning)Per Clean Up
Additional Bulky Item pickups (in excess of $28.10
three free pickups per dwelling unit per year)
Per Item
Resolution No.2016-54
Exhibit B
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