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CC SR 20220315 01 - SB 1383 Prop 218 Hearing for EDCO Rates PUBLIC HEARING Date: March 15, 2022 Subject: Consideration and possible action to conduct a Proposition 218 public protest hearing regarding a residential solid waste and recycling rate increase and five-year rate adjustment formula associated with EDCO Disposal Corporation. Recommendation: (1) Conduct a public protest hearing pursuant to Proposition 218, and after receiving public testimony and if deemed acceptable, approve the rate increase and five -year adjustment formula associated with EDCO Disposal Corporation, unless there is a majority pr otest; and, (2) Resolution No. 2022- ____, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA TO CONSIDER AND APPROVE A RESIDENTIAL WASTE MANAGEMENT SERVICES RATE ADJUSTMENT ATTENDANT TO THE PASSAGE OF SENATE BILL 1383 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Bradley 3. Request for Staff Report: Mayor Bradley 4. Staff Report & Recommendation: Lauren Ramezani, Senior Administrative Analyst 5. Council Questions of Staff (factual and without bias): 6. Testimony from members of the public: The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Bradley 8. Council Deliberation: The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter. 9. Council Action: The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional testimony; continue the matter to a later date for a decision. CITY COUNCIL MEETING DATE: 03/15/2022 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to conduct a Proposition 218 public protest hearing regarding a residential solid waste and recycling rate increase and five-year rate adjustment formula associated with EDCO Disposal Corporation. RECOMMENDED COUNCIL ACTION: (1) Conduct a public protest hearing pursuant to Proposition 218 , and after receiving public testimony and if deemed acceptable, approve the rate increase and five- year adjustment formula associated with EDCO Disposal Corporation, unless there is a majority protest; and, (2) Resolution No. 2022- ____, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA TO CONSIDER AND APPROVE A RESIDENTIAL WASTE MANAGEMENT SERVICES RATE ADJUSTMENT ATTENDANT TO THE PASSAGE OF SENATE BILL 1383 FISCAL IMPACT: If approved, the City will receive an additional $4,750 in Collector Fees and an additional $1,200 in the Environmental Fees in FY 2021-22. This represents the fees from the rate increase for the remaining three months FY 2021-22. The new rate will be included in the proposed budget for FY 202 2-23. (Attachment G) Amount Budgeted: $2,266,400 Additional Appropriation: N/A Account Number(s): 101-300-0000-3111 ($2,150,000) (General Fund – Franchise Tax Revenue) 213-300-0000-3406 ($116,400) (Waste Reduction Fund – AB 939 Fees) ORIGINATED BY: Lauren Ramezani, Senior Administrative Analyst REVIEWED BY: Ramzi Awwad, Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2022- ____, (page A-1) B. January 18, 2022, Staff Report C. Key Terms of the January 18, 2022, Agreement (page C-1) 1 D. Notice of Proposed Solid Waste Rate Adjustments, Rate Increase Methodology, and Public Hearing (page D-1) E. Written Protest Letters Received (page E-1) F. Misc. Email Correspondence Received (page F-1) G. Collector and Environmental Fees and Recycling Rebate/Credit (page G-1) BACKGROUND: In 2016, the State of California adopted Senate Bill No. 1383 (SB 1383), which establishes methane emission reduction targets of 50 % of the 2014 levels by 2020 and a 75% reduction by 2025. The state’s reason for creating SB 1383 is that the state concluded that methane, which is emitted when organic waste buried in landfills decomposes, contributes significantly to global warming. SB 1383 became effective on January 1, 2022. SB 1383 is the most significant change in solid waste regulations in California since 1989. On January 18, 2022, the City Council approved an amended and restated franchise agreement for residential (single-family and multi-family) solid waste collection with EDCO to implement expanded services and new solid waste rates in response to SB 1383 effective on April 1, 2022 (Attachment B). Key terms of the agreement are summarized in Attachment C. The scope of EDCO’s agreement covers only single-family and multi-family residential customers. The City provides for solid waste collection to commercial customers through separate non-exclusive franchise agreements with seven waste haulers (one of which is EDCO). Separate agreements with the commercial haulers will be presented to the City Council for consideration in the coming months. Furthermore, at the March 1, 2022 City Council meeting, Staff introduced Ordinance No. 658, repealing and replacing Chapter 8.20 (Solid Waste Collection and Disposal) of Title 8 (Health and Safety) of the Rancho Palos Verdes Municipal Code (RPVMC) relating to solid waste handling, organics waste disposal reduction, and edible food recovery. In a separate staff report presented to the City Council tonight (Consent Calendar), Staff is recommending the adoption of Ordinance No. 658. Adoption of this ordinance is a key requirement of SB 1383. DISCUSSION: Proposition 218 Public Protest Hearing and Public Noticing Pursuant to Proposition 218, to approve the new proposed rates, the City is required to hold a noticed “majority protest” public hearing for the consideration of adjustments of fees related to property. Solid waste collection service rates are considered by the City Attorney to be property-related and subject to the provisions of Proposition 218. Therefore, any change to the solid waste collection service rates charged to City residents needs to be compliant with the requirements of Proposition 218. 2 Notices complying with the requirements of Proposition 218 were mailed to all residential parcels on January 28, 2022, and published on February 24, 2022 and March 3, 2022, in the Palos Verdes Peninsula News (Attachment D). The notice included an explanation of why rates are increasing, the proposed monthly rates, the calculation methodology for future rate adjustments (not to exceed five years), and provided the opportunity to protest. Written protests were to be sent to the City Clerk’s Office and property owners were required to provide their tax parcel identification numbers or addresses, so that an accurate tally could be made. Majority Protest Hearing The City Clerk is responsible for tabulating and reporting the number of written protests received up to the time of the hearing. At the conclusion of the public hearing, the City Clerk shall count any additional protests received at the hearing. The City Clerk shall then report on the total number of protests received. If the number of protests submitted against the solid waste collection service rate increases exceed more than 50% of the residential parcels, a “majority protest” exists and the City Council cannot impose the increase in solid waste collection service rates. If the final tabulation is less than 50%, the City Council may proceed to adopt the attached resolution (Attachment A) implementing the solid waste collection services rate increases, effective April 1, 2022, as well as the rate adjustment formula, discussed below. If approved, the negotiated rates will be in effect until June 30, 2023, a 15-month period. A total of 15,165 notices were sent to single and multi-family parcels in the City. Protests exceeding 7,000 would constitute a majority protest. As of March 7, 2022, the City Clerk’s Office has received seven written protest letters (Attachment E). Additionally, the City has received several email comments and complaints (Attachment F). Five-Year Rate Adjustment Formula In addition to the rate increase, the Council is being asked to consider adopting a five- year rate adjustment formula. Proposition 218 allows a refuse collection service to adopt a formula authorizing automatic rate adjustments for a period not to exceed five years. Once the formula is approved, rates may be increased on an annual basis in accordance with the formula without going through the cost of the Proposition 218 hearing process each year for the next five years. Therefore, the City will save the annual cost of approximately $15,000 (at current prices) in printing, postage and newspaper publication expenses. Over five years, the City would save $75,000, not counting the additional costs associated with inflation and staff time. The rate adjustment formula is based on the U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers (CPI-U), U.S. city average, (seasonally adjusted for the Garage and Trash Collection). If the formula is approved, for public transparency purposes, Staff will continue to bring the annual rate adjustment to the City Council. Furthermore, EDCO will provide notice of a rate adjustment to impacted residents at least 30 days prior to the adjustment taking effect. 3 Increased Cost of Processing Food Scraps Placed in Green Waste Carts Under SB 1383, all jurisdictions must provide organics collection, including the ability for single-family customers to place household food waste in their green waste carts. Food waste has unique properties (high moisture content, low physical structure) that are different from green waste (leaves, grass and yard trimmings). As a result of these differences, it is more costly to process and compost green waste that includes food waste. Not all composting facilities that accept green waste are permitted to accept green waste that includes food waste. Those composting and processing facilities that are permitted to accept green waste mixed with food waste have higher tipping /gate fees (the price per ton to place material in a facility). As a result, the state’s requirement under SB 1383 that all jurisdictions must accept food waste in green waste ca rts is a significant driver in the cost of organics collection. Impact on Current Rates Approximately 95% of single-family residences in the City receive automated cart service. Table 1 shows the impact of proposed rates on single-family residential customers with automated cart service in Area 1 and Area 2. The monthly rate charged to single-family customers with automated cart service is based on the size of the refuse cart chosen by the customer. Table 1 shows the current rate for each size of refuse cart, the proposed rate, the adjustment amount, and the percent change. Table 1 shows that the rates charged to single-family residential customers with automated service are proposed to increase by 15.6%. Table 1 – Impact of Proposed Rates on Single-family Automated Customers in Area 1 and Area 2 SB 1383 does not allow any waivers to single-family residents. Therefore, even if single- family customers compost their own food waste, the City cannot provide a waiver nor a rate reduction. The City’s rate schedule includes separate rates for multi-family customers in Area 1 and Area 2. The monthly rates for multi-family customers with bin service is based on the size and number bins, and the number of pickups per week selected by the customer. The most common level of bin service is typically a single 3-yard bin collected once per week. Table 2 shows that the rates for multi-family bin customers in both Area 1 and Area 2 are proposed to increase by 3%. The percentage increase for multi-family customers is lower than that of single-family customers because the rate increase accounts for inflation only Cart Size Current Rate Proposed Rate Adjustment Amount Percent Change 35 gallon cart $22.54 $26.06 $3.52 15.6% 64 gallon cart $29.01 $33.54 $4.53 15.6% 96 gallon cart $35.45 $40.99 $5.54 15.6% 4 and excludes organic waste. Multi-family customer green waste is typically handled by landscapers. Therefore, organics collection and processing is not included in the rates shown in Table 2. Multi-family customers may obtain organic waste services from EDCO for an additional fee, self-haul in conformance with the requirements of SB 1383, or apply for a de minimis waiver if they meet certain specific conditions per SB 1383. This will typically depend upon how the building owner, building management or homeowners’ association board determines they will meet the requirements of SB 1383. Table 2 – Impact of Proposed Rates on Multi-family Customers (Excludes Organic Waste) Multi-family customers may contract with EDCO for organics collection and processing under the rate structure in Table 3. Table 3 – Impact of Proposed Organics Waste Rates on Multi-family Customers Recycling Rebate A unique feature of the solid waste rate structure in the City of Rancho Palos Verdes is the Recycling Rebate. (Attachment G) The Recycling Rebate is an amount that is deducted from each customer’s monthly charge to reflect the California Redemption Value (CRV) of the bottles and cans that customers place in EDCO’s recycling carts. Table 4 below shows the Recycling Rebate per dwelling unit credited to customers in Area 1 and Area 2. The amounts shown in Table 4 are deducted each month from the rates charged to customers shown in Table 1 and Table 2. Service Area Current Rate Proposed Rate Adjustment Amount Percent Change Area 1 $140.03 $144.23 $4.20 3.0% Area 2 $122.91 $126.60 $3.69 3.0% 1 2 3 64 gallon cart $83.71 $167.43 $251.14 $33.49 96 gallon cart $94.00 $187.99 $281.99 $37.60 2-yard bin $158.05 $316.09 $474.14 $63.22 Each Additional Bin/Cart 64 gallon cart $79.53 $159.06 $238.58 96 gallon cart $89.30 $178.59 $267.89 2-yard bin $150.14 $300.29 $450.43 1st Bin/Cart Pickups per Week Extra Pickups 5 Table 4 – Monthly Customer Recycling Rebate As a result, the effective amount paid by customers for solid waste services is less than the total rates that are charged to customers. Table 5 shows the proposed rates, the recycling rebate, and the total amount paid by single-family customers for each size of automated cart. For example, after deducting the Recycling Rebate ($1.58), the net amount paid by a single-family customer with an automated 96-gallon refuse cart is proposed to be $39.41 per month (current rate is $35.45). Table 5 – Proposed Single-Family Cart Rates Net of Recycling Rebate Table 6 below shows the proposed multi-family rates with the recycling rebate (assuming four dwelling units), and the total amount paid by multi-family customers for a single 3- yard bin picked up once per week in both Area 1 and Area 2. After deducting the Recycling Rebate for four units ($1.58 x 4 = $6.32), the net amount paid by a multi-family customer with single 3-yard bin picked up once per week in Area 1 is proposed to be $137.91 per month. Table 6 – Proposed Multi-family Rates Net of Recycling Rebate Service Area Recycling Rebate per Dwelling Unit Area 1 $1.58 Area 2 $1.31 Cart Size Proposed Rate $26.06 ($1.58) $24.48 $33.54 ($1.58) $31.96 $40.99 ($1.58) $39.41 Recycling Rebate Amount Paid by Customer 96 gallon cart 35 gallon cart 64 gallon cart Recycling Rebate Total Rate Amount Paid by Customer Total Rate Recycling Rebate Amount Paid by Customer Total Rate Service Level Area 1 Area 2 $144.23 $126.60 ($6.32) ($5.24) $137.91 $121.36 One each 3-yard bin picked up once per week Total Rate Recycling Rebate Amount Paid by Customer 6 Collector and Environmental Fees The City receives an annual Collector Fee and an Environmental Fee from EDCO. The annual Collector Fee (of approximately $630,000 in Fiscal Year 2021-22) helps offset some costs related to the residential and arterial streets’ wear and tear due to EDCO truck traffic on City roads. The annual Environmental Fee (of approximately $160,000 in Fiscal Year 2021-22) helps offset some costs related to solid waste and recycling program implementation such as recycling events, annual report preparation, public outreach and education, in addition to stormwater pollution prevention activities such as street sweeping. The details of the City’s Collector Fee and Environmental Fee allocation and uses, and the Recycling Rebate are in Attachment G. Comparison to Rates in Other Jurisdictions Chart 1 on the next page compares the net rate paid by customers (after deducting the Recycling Rebate) for single-family solid waste collection in the City of Rancho Palos Verdes with rates for similar solid waste rates charged in other jurisdictions. The cities in Chart 1 that have implemented organic waste recycling are identified by an asterisk. Each stacked bar in Chart 1 represents the amount paid by ratepayers broken down between the fee amount (if any) that is retained by the City, and the waste hauler’s portion of the rate. The bars in Chart 1 are sorted by the hauler portion of the rate, and not by the total rate paid by the customer. The two bars in Chart 1 with the hauler portion of the rate shown in green represent the current and proposed net amount paid by customers for a 96-gallon automated refuse cart in the City of Rancho Palos Verdes. A review of Chart 1 shows that, although the proposed rates in Rancho Palos Verdes are higher than most cities in the South Bay (as is the case with all Peninsula cities), they are lower than any other cities on the Peninsula. The fact that the rates for all the cities on the Peninsula are all higher than other cities in the South Bay may be due to the distance from solid waste infrastructure (waste haulers’ vehicle maintenance yards, material recovery facilities, composting facilities, etc.), making them more costly to serve. Chart 1 shows that the EDCO rates in the City are fair and reasonable. 7 Chart 1 – Rate Comparison – Single-family Residential Chart 2 on the next page also compares the net rate paid by customers (after deducting the Recycling Rebate) for multi-family solid waste collection in the City of Rancho Palos Verdes with rates for similar solid waste rates charged in other jurisdictions. Each stacked bar in Chart 2 represents the amount paid by ratepayers broken down between the fee amount (if any) that is retained by the City, and the waste hauler’s portion of the rate. The bars in Chart 2 are sorted by the hauler portion of the rate, and not the total rate paid by the customer. Chart 2 includes two sets of bars with the hauler portion of the rate shown in green. These two sets of bars represent the current and proposed rates in Areas 1 and 2, respectively. A review of Chart 1 shows that the multi-family rates in the City of Rancho Palos Verdes are more competitive than the rates for similar service in other South Bay cities. It is interesting to note that the multi-family rates for the Peninsula cities are not positioned on the right of Chart 2 in the same way that the single-family rates are positioned on the right of Chart 1. This may be due to the fact that the cities on the Peninsula may have a smaller proportionate share of multi-family revenue than other South Bay cities. Chart 2 shows that the EDCO multi-family rates in the City are fair and reasonable. 8 Chart 2 – Rate Comparison – Multi-family Residential Based on the above, EDCO will begin SB 1383 compliant organics collection services on April 1, 2022. To cover the increased cost of these services, rates for single -family customers are proposed to increase by 15.6% effective April 1, 2022. Multi -family bin rates are proposed to increase by 3%, excluding organic waste which has an additional cost, also on April 1, 2022. EDCO will forego the rate increase to which it was entitled in July of 2021 until April of 2022. After this adjustment, EDCO’s rates will continue to be competitive in relation to solid waste rates in other cities in the South Bay and the lowest of the cities on the Palos Verdes Peninsula. EDCO’s future rates will only be adjusted each year based on inflation. If the proposed rate increase is approved, in addition to implementing commingled organics collection; EDCO will also implement an extensive public education program, institute an electronic reporting platform for recordkeeping purposes, provide State mandated route monitoring, and offer Kitchen Caddie containers to residents. EDCO is ready to start its extensive public education campaign immediately following the March 15 City Council meeting and is prepared to commence its new services on April 1, 2022. If the new rates are not adopted, the State mandated requirements of SB 1383 cannot be implemented, and the City will eventually be subject fines ranging from $7,500 to $10,000 per day. CONCLUSION: Based on the comparison of EDCO’s proposed rates to other cities, it is evident that the SB 1383-compliant rates proposed by EDCO are reasonable. Staff therefore 9 recommends the City Council receive public comments, approve the new proposed rates, and approve the five-year rate adjustment formula; unless there is a majority protest. ALTERNATIVES: In addition to the Staff recommendations, the following alternative actions are available for the City Council’s consideration: 1. Request specific additional information from Staff prior to approving the new proposed rates and five-year rate adjustment formula. 2. Approve the new proposed rates but do not approve the five-year rate adjustment formula and require an annual Proposition 218 protest hearing. 3. Take other action, as deemed appropriate. 10 01203.0014/772183.2 RESOLUTION NO. 2022- __ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA TO CONSIDER AND APPROVE A RESIDENTIAL WASTE MANAGEMENT SERVICES RATE ADJUSTMENT ATTENDANT TO THE PASSAGE OF SENATE BILL 1383, WHEREAS, The City of Rancho Palos Verdes (“City”) entered into an exclusive agreement franchise agreement with EDCO Disposal Corporation (“EDCO”) for Residential Solid Waste Management Services on or about November 24, 2009, which was thereafter amended on June 30, 2015 (the “Agreement”); and WHEREAS, the term of the Agreement was set to expire on June 30, 2020, but the Agreement also included 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, The State of California recently adopted a number of bills mandating a comprehensive update to waste management and recycling systems, particularly with respect to the diversion of organic materials and food waste away from landfills. AB 341 mandates that commercial waste generators arrange for recycling services. AB 1826 mandates that commercial waste generators recycle their organic waste. AB 1594 will end the practice of excluding organic material used as Alternative Daily Cover (“ADC”) from the calculation of a jurisdiction’s total per capita amount of waste disposed; and WHEREAS, most significantly, SB 1383 directs public agencies to reduce organic waste disposal by 75% and increase edible food recovery by 20% by 2025. SB 1383 is the most significant waste reduction mandate adopted in California in the last 30 years. SB 1383’s regulations apply to all persons and entities that generate organic materials, such as food scraps and plant trimmings. All waste generators are required to divert their organic materials from the garbage. SB 1383 allows the Department of Resources Recycling and Recovery (“CalRecycle”) to implement new regulations on local jurisdictions if significant progress has not been made in the law’s waste reduction goals; and WHEREAS, SB 1383 requires EDCO and other waste haulers to comply with mandatory processing of food waste to be collected in residential green waste carts and implement new measures to reduce contamination, educate waste generators, procure recycled products with organic content, track and report recycling participation, and assist local jurisdictions with enforcement of new recycling requirements. EDCO will need to implement modifications to their service routes, purchase additional disposal containers and container labels, and otherwise provide customers with additional refuse and recycling services; and A-1 01203.0014/772183.2 WHEREAS, the above-referenced changes in law and State mandates present substantial additional operational and programmatic changes in local waste hauling services to meet new waste reduction goals, which requires EDCO to implement several comprehensive changes to their refuse and recycling services in order to comply with State regulations. To this end, EDCO can only continue to provide its residential refuse and recycling services as mandated by the State if it can secure a rate adjustment and new Agreement terms; and WHEREAS, Article XIII D of the California Constitution (“Proposition 218”) establishes required procedures for increasing property 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 (the “Protest Hearing”); and WHEREAS, Proposition 218 requires the City Council to consider all protests against the proposed rate increase, and establishes that if written protests against the proposed rate increase are presented by a majority of owners of the Identified Parcels, the City Council shall not approve the rate increase; and WHEREAS, protests exceeding 7,000 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 rate adjustments, including a formula for adjusting the rates, 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 rate increase; and WHEREAS, EDCO has requested a rate increase to meet the State of California’s requirements pursuant to Senate Bill 1383; and WHEREAS, the City Council of the City of Rancho Palos Verdes seeks to hold a fair and noticed public protest hearing as described in the Notice of Public Protest Hearing on March 15, 2022, to consider the proposed residential waste collection services rate structure with Five-Year Adjustment Formula to be applied pursuant to the requirements of Proposition 218, and WHEREAS, at said public hearing, all Identified Parcels are to be afforded the opportunity to protest the proposed new rate schedule. Protest against the rate structure shall be received and counted by the City Council. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: A-2 01203.0014/772183.2 Section 1. The foregoing Recitals are hereby found to be true and correct and incorporated herein by this reference. Section 2. The City Council hereby ratifies the Proposition 218 process and adopts the rates proposed by EDCO as set forth in the Notice of Public Protest Hearing mailed to all Identified Parcels EDCO serves on January 28, 2022, and pursuant to Proportion 218 finds as follows: a) Rates for Service Provided Only: Revenues derived from the rates may not be used for any purpose other than that for which the rate was imposed. The rates collected are used to pay EDCO for the refuse collection, recycling, new organics programs, and disposal services it provides to City customers serviced by EDCO pursuant to the passage of Senate Bill 1383 and other new State mandates identified in the Recitals hereto . This conclusion is further supported by all findings of fact presented at the City Council hearing, including without limitation those facts stated in the accompanying staff report, all of which evidence is incorporated herein by this reference. b) Rates not to Exceed Cost of Service: Revenues derived from the rates may not exceed the funds required to provide refuse service. The City’s cost for refuse and recycling service is established by the Agreement which permits EDCO to recover its actual costs. It is found that EDCO will accrue direct and unforeseen costs of service as a result of legal obligations pursuant to the passage of Senate Bill 1383 and other new State mandates necessitating EDCO’s transition into providing City with additional solid waste, recycling and organics collection services and attendant fiscal impacts. This conclusion is further supported by all findings of fact presented at the City Council hearing, including without limitation those facts stated in the accompanying staff report, all of which evidence is incorporated herein by this reference. c) Rates not to Exceed Proportional Cost: The amount of the rates may not exceed the proportional cost of the refuse service attributable to the parcel. EDCO proposes that the proposed refuse rates are reasonably proportional and cost-based, and meet the general requirements of fairness and equity under Proposition 218. In the course of analyzing the rates attendant to this resolution, the City retained the services of an independent auditor/consultant for purposes of reviewing and verifying the rate structure proposed by EDCO, which independent audit supports the rate structure. This conclusion is further supported by all findings of fact presented at the City Council hearing, including without limitation those facts stated in the accompanying staff report, all of which evidence is incorporated herein by this reference. Section 3. The Council has fully considered this matter and has: A-3 01203.0014/772183.2 a) Reviewed the information submitted herewith regarding the proposed solid waste service rate adjustment for accounts serviced by EDCO, the parcels to which the proposed rate adjustment would apply, and the reasons and basis for the adjustment and the rates; b) Provided notice of the proposed rate adjustment to the Identified Parcels to which the proposed adjustment would apply in accordance with Article XIIID of the California Constitution; c) Heard and received all written protests from any Identified Parcels subject to the rates; d) Taken and received oral and documentary evidence pertaining to the proposed rate adjustment; and e) Been fully informed of this matter. Section 4. The Council finds that insufficient written protests were presented to prevent the rates proposed by EDCO from being imposed. Section 5. The Council finds that based on these facts and the circumstances and information received during the public hearing, the changes in rates proposed by EDCO are necessary and are hereby adopted , contingent upon there being no Majority Protest from a majority of all Identified Parcels under an omnibus protest by all those permitted to protest the proposed new rate system. (Morgan v. Imperial Irrigation District (2014) 223 Cal.App.4th 892.) Section 6. Said refuse rates shall take effect on April 1, 2022. Section 7. This Resolution shall become effective immediately. PASSED, APPROVED and ADOPTED this 15th day of March 2022. _____________________________ Mayor Attest: A-4 01203.0014/772183.2 ____________________________ City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2022-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on March 15, 2022. __________________________ City Clerk A-5 Key Terms of Proposed Restated and Amended EDCO Agreement Term of Agreement Initial term is for approximately seven years from April 1, 2022 through June 30, 2029. An option for an additional five-year term is included upon mutual consent. Peninsula-Wide Solid Waste Contract* A Peninsula-wide waste contract is not possible at this time because of varying expiration dates of existing contracts for the Peninsula cities. The current expiration dates of the contracts for Rolling Hills and for Rolling Hills Estates is June 30, 2029. The contract in Palos Verdes Estates is set to end on June 30, 2022. Palos Verdes Estates is currently in negotiations with its waste hauler for a proposed contract with a June 30, 2029 expiration date. The negotiated term coincides with the expiration dates of Rolling Hills and Rolling Hills Estates contracts, setting the stage for the possibility of a future combined contract. When any Peninsula city considers joining the City in a multi-jurisdictional agreement, EDCO will identify savings and economies of scale to reduce rates or slow the growth of operating costs. Combined Residential and Commercial Contract* Both parties agreed to begin good faith negotiations in three years for EDCO to take over exclusive service for the commercial sector, after the required five-year notice of non-extension to existing commercial haulers runs its course. Effective Date The Agreement became effective on January 18, 2022 and new SB 1383-compliant services will begin on April 1, 2022. Residents will then be able to place organics in the green waste carts. Small kitchen caddies will be provided to interested customers upon request. Rate Adjustment for Fiscal Year 2021-2022 EDCO waived the single-family customer Consumer Price Index (CPI) rate increase to which it was entitled in July of 2021 until April of 2022. Rate Freeze If approved tonight, the approved rates are for a period of 15 months, from contract approval until June 30, 2023. New Rates The new single-family rates will increase by 15.6% to cover the additional cost of organics waste collection and recycling, and related program implementation. The new multi-family rates will increase by 3%. Multi-family customers may obtain organic waste services from EDCO for an additional fee. New Trucks EDCO will operate a fleet of new “near-zero” engine trucks utilizing renewable natural gas (RNG). New Trash Carts for Area 2 Both parties agreed to provide gray trash containers to the Area 2 customers. Currently, the customers provide their own trash cans which might not meet the SB 1383 requirements. C-1 Discounts Both parties agreed to a clarified calculation for multiple discounts available to customers. Rate Adjustment Methodology Both parties agreed to a simplified annual rate adjustment methodology in accordance with solid waste industry standards. Processing and Disposal Facilities EDCO will secure access to organics processing capacity. Both parties agree to discontinue taking a portion of the City’s waste to Southeast Resource Recovery Facility in Long Beach to help reduce disposal costs and customer rates. Public Outreach and Education EDCO will provide extensive public outreach and education to inform customers of the new program, including multi-family technical assistance and personal site visits. Monitoring, Recordkeeping EDCO will monitor compliance, conduct enforcement, and keep a database for SB 1383 reporting on behalf of the City. Annual City Fees and Rebate The City’s annual fees will increase by approximately 3%. EDCO will pay the City approximately $648,130 in Franchise Fees and approximately $163,670 in Environmental Fees annually. Fees will increase when/if customer rates increase in the future. Customers will continue to receive $296,000 in Recycling Rebates. Tipping (Gate) Fee increases EDCO accepted the risk of market changes in the tipping (gate) fees (the price per ton to place material in a processing facility) for organic processing for the term of the agreement. However, the organics tipping fee of $95 per ton would be adjusted each year based on the CPI. Siting an Organics Processing Facility on Peninsula* EDCO will work cooperatively to explore siting an organic processing facility on the Peninsula in the former Palos Verdes Landfill site located in the City of Rolling Hills Estates. The proposed Agreement provides a re-negotiation of fees for any cost savings resulting from the development of an organics recycling facility on the site. Special Services EDCO will continue to provide backyard service, and its smaller truck (pup) collection service, upon request and for a special rate. EDCO will continue its twice per year document shredding and brush clearing events. EDCO will continue its limited free on-call bulky, electronics waste, and used oil and filter collection services. EDCO will offer a new free (limited) mail-back sharps disposal program. Medical Waste* The Los Angeles County Sherriff’s Department accepts unused medications. EDCO will continue to include information about this program in its public education materials. Mulch EDCO will provide no-charge mulch to residents (for pickup at the Civic Center during events) and to the City for use on City trails and medians. C-2 Food Waste as Compost Material for City Medians and Rights-of-Way* Providing compost from food waste is not practical at this time because of the need to transport the food waste for processing and then return it to its application site. Mulch is more readily available and more frequently used on City medians and rights-of-way. * Subcommittee-Requested Items C-3 D-1 D-2 D-3 D-4 February 1,, 2022 City Clerk City of Rancho Palos Verdes 30940 Hawlhome Jlam. Rancho Palos Verdes. CA 90275 To the City Clerk: RECEIVED CITY OF RANCHO PALOS VERDES FEB O 4 2022 CITY CLERK'S OFFICE While I sympathize with aH the businesses and services that must raise funds in order" to operate effectively,, homeowners al5o have been inundated with increases startirl: at the beginning of this year. At this time, my budget just won"t allow another-increase; therefore, I protest the proposed solid 'lll'aslJ=51!l'Vi[e. rab.5 •. Sincerely .. 29241 Stadia Hffl lane -Assessor-'s ID: 7585 010 023 Rancho Palos Verdes,, CA 90275 1 E-1 2/7/22, 11 :00 AM Re: Notice of EDCO rate increase -Teresa Takaoka -Outlook <~ Reply all v [filJ Delete 0 Junk Block RECEIVED CITY OF RANCHO PALOS VERDES Re: Notice of EDCO rate increase FEB O 3 2022 about:blank From: Eva Cicoria <swensonsathome@aol.com> Sent: Thursday, February 3, 2022 4:21 PM To: CC <CC@rpvca.gov>; Ara Mihranian <AraM@rpvca.gov>; Lauren Ramezani <LaurenR@rpvca .gov> Cc: Eva Cicoria <cicoriae@aol.com> Subject: Notice of EDCO rate increase CAUTION: This email originated from outside of the City of Rancho Palos Verdes. We received the Notice regarding SB 1383 and wonder whether other companies, other systems, were investigated as alternatives to Edco. Tn particular, we are aware of a local business, Dyrt Labs that may be less expensive and better environmentally than the Edco system. As discussed in the Notice, under California SB 1383 counties and cities are now required to arrange for the segregation and composting food of wastes from residences and businesses, as opposed to putting that waste into regional landfills. The goal of SB 13 83 is to reduce methane in the atmosphere. Methane (CH4 ) is 84% more potent than carbon dioxide (CO 2) as a contributor to global warming and climate change. Methane is a significant by-product of decomposition of food waste in landfills. Many local jurisdictions seek to contract this responsibility to third party waste haulers at taxpayer expense. Such haulers charge significant sums per resident or business to transport this waste as much as a hundred miles away, resulting in a very inefficient solution that raises taxes on the local community and, ironically, contributes to the greenhouse gas problem through the transportation of the waste for such long distances. In Rancho Palos Verdes, EDCO rates will go up I 5.6% for every single-family residential household, with another increase in 2023 for inflation, which could be another significant increase. We are supportive of the requirements and purpose of SB 1383, but there may be a better solution for our city. A local business-Dyrt Labs, Inc.-provides through sale or lease after a significant free evaluation period what are known in the industry as "in-vessel" (self-contained) composting systems. These systems operate at a low cost w ith minimal personnel, compost quickly and are environmentally sound , produce compost that can be used locally and keep the solution and the business lo cal. These systems have been in use for a number of years outside of the U.S., and are gaining traction here as laws change on the disposal of organics. The customer has the option to operate the system itself or to contract for operation. Realistically, this does not mean no increase in cost to residents. Segregation of the waste and short distance hauling to the in-vessel location is still required, and there would be the system acqu .isition or lease costs (after the free evaluation period) and operating costs. However, discussions with the local owner ofDyrt Labs will show that an in-vessel system will save the city-or more properly, its residents-significantly over the EDCO hauling solution, starting in th .o \1p ,•\T tit"ct ·upQ1• Anrl n11r ,..;hr,...," L,,,,.p..., 1tc h11 .:-1-n~cc l/"\l'"=l1 t:Jnrl alcl"'\ h,::n,o thP l"Am"nct n'l"'Arln.,....f 1/1 E-2 PUBLIC HEARING AND PROTEST PROCEEDINGS Property owners, as defined under Proposition 218, may protest the proposed rate adjustment in writing prior to or during the public hearing. Consistent with the provisions of Proposition 218 and Government Code Section 53755, this notice has been mailed to all record owners of the affected properties at the addresses as they appear on the latest equalized assessment roll. If you are a property owner as defined under Proposition 218 and object to the proposed rates as described in this Notice , you may file a written protest with the City at or before the time set for the public hearing. Original written protests can be mailed or personally delivered to the City Clerk, but must be received by no later than the close of the public hearing on March 15, 2022. Written protests should be mailed to: City Clerk City of Rancho Palos Verdes 30940 Hawthorne Blvd . Rancho Palos Verdes , CA 90275 A valid written protest must include: 1. The name of the record owner or owners of the property; and, 2. Identification of the property by either assessor's parcel number or street address; and, 3. A statement of protest ("I/we protest" will suffice); and, 4. The original signature of the protesting owner or owners (photocopies, electronic mail, electronic copies, e-comments, or faxes will not be accepted). Each property owner will be counted as a single vote, regardless of the number of owners. Multiple protests returned for a single property will be disallowed. The City Clerk will only count one protest per property, even if the parcel has multiple owners. The City Clerk will determine the validity of all protests submitted and exclude any invalid protests from the final tabulation. The City Clerk may confer with the City Attorney in determining the validity of written protests. As part of this process, the City Attorney may review contested or suspect protest forms. The City Clerk's decision shall be final and binding. If you have any questions regarding this Notice, or the proposed rate adjustments, or you would like more information, please email Lauren Ramezani at: Laurenr@rpvca.gov t!II 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 RECEIVED CITY OF RANCHO PALOS VERDES Nl1b;\ (u'\ll Dl a 11Cl FEB O 7 2022 CITY CLERK'S OFFICE :2.. i/,,~7 Kuf\c,.,/\D 1C\mber:Jttle Dr, t:: pci,bS \}e rJes1 Cl/, ro2-15 I~-.;/~~£,~~ - ;{!)8Jl ATT1L r,,._1// 2/'2-l1ol'Z. E-3 PUBLIC HEARING AND PROTEST PROCEEDINGS Property owners, as defined under Proposition 218, may protest the proposed rate adjustment in writing prior to or during the public hearing. Consistent with the provisions of Proposition 218 and Government Code Section 53755, this notice has been mailed to all record owners of the affected properties at the addresses as they appear on the latest equalized assessment roll. If you are a property owner as defined under Proposition 218 and object to the proposed rates as described in this Notice, you may file a written protest with the City at or before the time set for the public hearing. Original written protests can be mailed or personally delivered to the City Clerk, but must be received by no later than the close of the public hearing on March 15, 2022. Written protests should be mailed to: City Clerk City of Rancho Palos Verdes 30940 Hawthorne Blvd . Rancho Palos Verdes, CA 90275 A valid written protest must include : 1. The name of the record owner or owners of the property; and, RECEIVED CITY OF RANCHO PALOS VERDES FEB 1 6 2022 CITY CLERK'S OFFICE 2. Identification of the property by either assessor's parcel number or street address; and, 3. A statement of protest ("I/we protest" will suffice); and, 4. The original signature of the protesting owner or owners (photocopies, electronic mail, electronic copies, e-comments, or faxes will not be accepted). Each property owner will be counted as a single vote, regardless of the number of owners. Multiple protests returned for a single property will be disallowed. The City Clerk will only count one protest per property , even if the parcel has multiple owners . The City Clerk will determine the validity of all protests submitted and exclude any invalid protests from the final tabulation. The City Clerk may confer with the City Attorney in determining the validity of written protests. As part of this process, the City Attorney may review contested or suspect protest forms. The City Clerk's decision shall be final and binding. If you have any questions regarding this Notice , or the proposed rate adjustments , or you would like more information, please email Lauren Ramezani at: Laurenr@rpvca.gov ~ 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 E-4 City Clerk City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Christopher Martin 2081 Avenida Feliciano Rancho Palos Verdes, CA 90275 February 10, 2022 RECEIVED CllY OF RANCHO PALOS VERDES FEB 14 2022 CITY CLERK'S OFFICE Re: Protest solid waste rate adjustments related to Proposition 218 In response to the mailed "Notice of Proposed Solid Waste Rate Adjustments and Public Hearing January 28 , 2022 ," I formally protest the increase in my collection rate to accommodate organic food waste composting by Edco . As an environmentally conscious family , we already compost our food waste using a home composting bin (pictures below). Thus , we should not have to pay extra for separation of our solid waste in the green bins . If the rates are approved, there should be a means of exemption for those who already compost. Sincerely, Us ~ Christopher (Chris) Martin 1 E-5 From: Leslie Chapin <les.alice@cox.net> Sent: Friday, February 25, 2022 2:52 PM To: 'laurenr@rpvca .gov' <laurenr@rpvca.gov> Cc: aysanrangchian@gmail.com ; B-Shujaat Ali (shujaat1@gmai l.com ) <shujaatl@gmail.com >; E-Noel Park (noelparkone@gmail.com ) <noelparkone@gmail.com >; F-John Spielman (johnspielm an@sent.com ) <johnspielman@sent.com >; F-William Quan (wi ll ieguan@yahoo .com ) <williequan@yahoo.com >; L-Jonothan Hofeller (ionathan.hofeller@gma il.com ) <jona than.hofe ller@gmail.com>; V-Mohsen Saidinejad (mohsenmd@ucla .edu ) <mohsenmd@ucla.edu >; W-Eugene and Stephanie Miyata (esmiyata@hotmail.com ) <esmiyata@hotmail.com > Subject: Solid Waste Rate Adjustments Dear Lauren, I need to write an Email to the city council on this subject. I am trying to understand what has changed? I think the definitions are (1) Solid wastes, all materials that end up in landfills, (2) Green wastes, all organics that are recyclable, (3) Food Wastes, all table food scraps, which I suspect in most households are going down garbage disposals, with certainly the exceptions of banana and especially avocado peelings. In our household table scraps are going into and have always gone into our green waste containers. So what has changed?? Container costs have always been based on the size selected for the solid waste container. The NOTICE OF PROPOSED SOLID WASTE RATE ADJUSTMENTS AND PUBLIC HEARING dated January 28,2022 as published in the Palos Verdes Peninsula News No . 13792 states why rate adjustments are necessary: "requires jurisdictions to allow food wastes to be collected in green waste containers, which is then subjected to mandatory processing that "significantly" increases the cost of handling the material. Has the city done a study of the current ratio of the city's tons of green wastes to the amount of minutia table scraps that are going to be potentially added to the green waste containers? My prediction is that the very small amount of table scraps will create no significant impact to the "multi tons" of green waste currently being recycled throughout the city. The city should request of EDCO to provide that information. Their response will undoubtedly be a best guess since there seems to be no way to predict how the RPV residents will respond to this new requirement of adding table scraps to their green waste containers. The edible food recovery portion of Proposition 218 should be funded by those EDCO customers who are involved with retail or wholesale edible food processing and not by RPV residents. What am I missing? I am thanking you in advance for your comments . Les Chapin 6710 Verde Ridge Road 310-377-1139 les. a I ice@cox.net 2 E-6 City Clerk City of Rancho Palos Verdes 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 Re: Proposed Solid Waste Rate Adjustment notice, January 28th, 2022 Dear City Clerk, February 22, 2022 RECEIVED CITY OF RANCHO PALOS VERDES ~AR -2 2022 CITY CLERK'S OFFICE As property owners of a single family home in Rancho Palos Verdes, we protest the exorbitant rate increase as proposed for residential solid waste. Processing green waste and food waste will result in the production of highly valuable organic materials that could be sold as landscape fertilizers. The increased costs should be balanced by new revenue. Sincerely yours, l lP.Jt: ~k~ Eric T. Potter and Saramelissa I. Reyes Potter, Eric T Co Tr Potter Family Trust 5431 Manitowac Drive Rancho Palos Verdes, CA 90275 Tract# 21351 Lot 98 E-7 Lauren Ramezani From: Sent: To: Cc: Subject: Follow Up Flag: Flag Status: Dear Lauren, Leslie Chapin <les .alice@cox .net> Friday, February 25, 2022 2:52 PM Lauren Ramezani aysanrangchian@gmail.com; B-Shujaat Ali; E-Noel Park; F-John Spielman; F-William Quan; L-Jonothan Hotelier; V-Mohsen Saidinejad; W-Eugene and Stephanie Miyata Solid Waste Rate Adjustments Follow up Flagged I need to write an Email to the city council on this subject. I am trying to understand what has changed? I think the definitions are (1) Solid wastes, all materials that end up in landfills, (2) Green wastes, all organics that are recyclable, (3) Food Wastes, all table food scraps, which I suspect in most households are going down garbage disposals, with certainly the exceptions of banana and especially avocado peelings. In our household table scraps are going into and have always gone into our green waste containers. So what has changed?? Container costs have always been based on the size selected for the solid waste container. The NOTICE OF PROPOSED SOLID WASTE RATE ADJUSTMENTS AND PUBLIC HEARING dated January 28,2022 as published in the Palos Verdes Peninsula News No. 13792 states why rate adjustments are necessary: "requires jurisdictions to allow food wastes to be collected in green waste containers, which is then subjected to mandatory processing that "significantly" increases the cost of handling the material. Has the city done a study of the current ratio of the city's tons of green wastes to the amount of minutia table scraps that are going to be potentially added to the green waste containers? My prediction is that the very small amount of table scraps will create no significant impact to the "multi tons" of green waste currently being recycled throughout the city. The city should request of EDCO to provide that information. Their response will undoubtedly be a best guess since there seems to be no way to predict how the RPV residents will respond to this new requirement of adding table scraps to their green waste containers. The edible food recovery portion of Proposition 218 should be funded by those EDCO customers who are involved with retail or wholesale edible food processing and not by RPV residents. What am I missing? I am thanking you in advance for your comments. Les Chapin 6710 Verde Ridge Road 310-377-1139 les.alice@cox.net 1 F-1 Lauren Ramezani From: Sent: To: Cc: Subject: Eva Cicoria <swensonsathome@aol.com> Thursday, February 3, 2022 4:22 PM CC; Ara Mihranian; Lauren Ramezani Eva Cicoria Notice of EDCO rate increase hated ·ttom outside of fhe a We received the Notice regarding SB 1383 and wonder whether other companies, other systems, were investigated as alternatives to Edco. In particular, we are aware of a local business, Dyrt Labs that may be less expensive and better environmentally than the Edco system. As discussed in the Notice, under California SB 1383 counties and cities are now required to arrange for the segregation and composting food of wastes from residences and businesses, as opposed to putting that waste into regional landfills. The goal of SB 1383 is to reduce methane in the atmosphere. Methane (CH4) is 84% more potent than carbon dioxide (CO2) as a contributor to global warming and climate change. Methane is a significant by-product of decomposition of food waste in landfills. Many local jurisdictions seek to contract this responsibility to third party waste haulers at taxpayer expense. Such haulers charge significant sums per resident or business to transport this waste as much as a hundred miles away, resulting in a very inefficient solution that raises taxes on the local community and, ironically, contributes to the greenhouse gas problem through the transportation of the waste for such long distances. In Rancho Palos Verdes, EDCO rates will go up 15.6% for every single-family residential household, with another increase in 2023 for inflation, which could be another significant increase. We are supportive of the requirements and purpose of SB 13 83, but there may be a better solution for our city. A local business-Dyrt Labs, Inc.-provides through sale or lease after a significant free evaluation period what are known in the industry as "in-vessel" (self-contained) composting systems. These systems operate at a low cost with minimal personnel, compost quickly and are environmentally sound, produce compost that can be used locally, and keep the solution and the business local. These systems have been in use for a number of years outside of the U.S., and are gaining traction here as laws change on the disposal of organics. The customer has the option to operate the system itself or to contract for operation. Realistically, this does not mean no increase in cost to residents. Segregation of the waste and short distance hauling to the in-vessel location is still required, and there would be the system acquisition or lease costs (after the free evaluation period) and operating costs. However, discussions with the local owner of Dyrt Labs will show that an in-vessel system will save the city-or more properly, its residents-significantly over the EDCO hauling solution, starting in the very first year. And our city can keep its business local and also have the compost product available locally. We do not have any financial or ownership interest in Dyrt Labs, Inc. The owner happens to be our neighbor and we believe the solution his company offers may be better environmentally as well as reduce the cost for taxpayers. We urge the City to contact Dyrt Labs and give meaningful consideration to the in-vessel option. 1 F-2 Lauren Ramezani From: Sent: To: Cc: Subject: Follow Up Flag: Flag Status: Bruce Edelson < bruceedelson@cox.net> Sunday, December 26, 2021 2:15 PM PublicWorks Cheryl Kouchekinia FOOD WASTE RECYCLING Follow up Flagged Under California SB 1383, the State appears to mandate recycling for food waste commencing on January 1, 2022, with a staggered implementation date for various entities. It appears from the website that basic implementation of this new law is by putting food waste in the green waste recycle container The last time the state recycling website was updated was January 2021, so there is little further information regarding implementation of the program on the website. The Sol Y Mar Community Association is a development of 60 townhouses located within RPV. As individual town homes we have no individual green waste recycling containers. Our green waste is handled by our landscape contractor who is responsible for removal of green waster and disposing the waste in a legal manner. There are no green waste containers anywhere on the site. I would appreciate if the City could provide guidance that can be promulgated to our residents as to the manner it is intended to implement this law. I do note that the State provides that local jurisdictions can provide waivers in lieu of implementation. Is it possible that Sol Y Mar may obtain such a waiver? Bruce H. Edelson, P. E. President Sol Y Mar Community Association bruceedelson@cox .net 310-544-7007 1 F-3 Lauren Ramezani From: Megan Barnes Sent: To: Monday, February 28, 2022 11 :31 AM Lauren Ramezani; Ramzi Awwad Cc: Ara Mihranian Subject: FW: Recycling organic material Follow Up Flag: Flag Status: Follow up Flagged From: Lori Chong Eurich <1ace167@hotmail.com> Sent: Monday, February 28, 2022 11:27 AM To: CC <CC@rpvca.gov> Subject: Recycling organic material Hello Mayor Bradley and city council members, I strongly urge you to implement a multi-language public education program to teach residents what can be tossed in the green yard waste bin. This can be a 4-color flyer with artwork showing what is allowed with simple English text and other languages such as, Spanish, Korean, Chinese and Japanese. We must recycle our kitchen scraps, etc. and urge you to also develop a program for residents in multi-family units, i.e., apartments and in businesses. Thanks, Lori Eurich RPV resident for 8 years 1 F-4 Lauren Ramezani From: Lauren Ramezani Sent: To: Tuesday, March 8, 2022 1 :41 PM Lauren Ramezani Subject: FW: Organic Waste Disposal Issue From: cass ie j@ ao l.co m <cass ie j@ aol.co m > Sent: Thursday, February 24, 2022, 5:53 PM To: CC <CC@ r pvc a.g ov> Subject: Organic Waste Disposal Issue UTION: Th is email orl lnated from outs ide of t he er Dear Mayor and Councilpersons, Thank you for your service. I have been following this subject and am fairly confident my home situation will be handled in the standard manner. We use compost bins for compostable food and garden scraps and gave green waste hauled weekly . We can deal with the addition of some food scraps to the green waste container if our provider can provide lids to keep the raccoons and rats out. We currently put meat waste in the garbage disposal or non-recyclable can with a lid. It can certainly go in the green waste with a lid ... However, I own the Point Vicente Animal Hospital right below your offices and I have not been able to figure out what we are to do with dog poop, cat poop and litter and uneaten dog and cat food. And certainly not in the quantities that we can generate. Do you have a special designation for such waste or prefer it to go into the green waste? If so , we will need to get a green waste container as our green waste is currently hauled off by our landscaping service. What are most residential customers supposed to do with the same items? They are not really addressed in the staff report that I can see, though I certainly could have missed it. Manure is discussed at length but not dog and cat poop and food disposal. Please advise . There are other veterinary clinics in the City, I believe, and they might want to know the score here as well. And, for that matter, what is the average household to do with it specifically? My clients may want to know! Again, thanks for all you do. Sorry to be the one to bring up dog poop! Sincerely, Cassie Jones, DVM Point Vicente Animal Hospital Rancho Palos Verdes 1 F-5 Lauren Ramezani From: Sent: To: Subject: Follow Up Flag: Flag Status: Dear Ms. Ramezani, Elizabeth Kennedy <pvtrailrunner@mac.com> Monday, February 28, 2022 10:53 AM Lauren Ramezani SB 1383 Compliance and Support for Organic Waste Recovery Follow up Flagged I am writing because I am a homeowner in RPV and I received a notice regarding SB 1383 and new charges for recovery of organics waste. The notice gives an opportunity to protest the new rate adjustment but does not have any instructions for residents like me who wish to support organic waste recovery. Although the notice's repeated mention of "unfunded mandates" is a tired refrain given the six years of notice that RPV had to comply, $4.20 a month is well worth it IF EDCO complies properly with recovery of organic waste. I have seen nothing on the EDCO website about this topic and when I inquired, I was told that they are not complying yet. In contrast, other waste haulers have great guidance, transparency, and information on their websites about this and other sustainability topics. This is very disappointing to me that RPV does not have the same level of service, and I am wondering how long will it be before RPV considers other contractors for this business. Capturing organics waste will lead to better recovery of resources that can be composted into soil, and this is important for all of us to have a healthier and more productive environment that does not put valuable resources into landfills where they create more pollution and greenhouse gas emissions rather than be recycled into soil for which there is a thriving market. Please let me know if there is another communications channel through which I can support organics recycling reform and compliance in RPV. Thank you, Elizabeth Kennedy 1 F-6 -----Original Message----- From: Carol Mueller <cmuell@verizon .net> To : cc@rpvca .gov <cc@rpvca .gov> Sent: Tue, Mar 1, 2022 3:59 pm Subject: 3 .1.22 RPV Council Meeting To Whom it may concern: I am very tired this date, so I would like to submit the following as late correspondence to the above referenced meeting in the event I am unable to attend. I am wondering what does environmental state mandates have to do with altering certain parts of a Contract between RPV and EDCO entered into competitively in 2009 and was to be valid through June, 2022? There seems to be a very "close" relationship between EDCO and certain RPV employees. For years , I assumed it was incompetence, however, I have come to suspect perhaps nefarious actions . I am find ing CA re sidents who are totally unaware of the ir c ity taking actions re SB 1383 as of this date. Why the rush in the city of RPV? Perhaps a new EDCO/RPV contract should go out to b id . More than once, EDCO has declined to take rate increases to their contract. As I recall , the current contract states if EDCO declines increases, they CANNOT come back at a later date and reclaim . Respectfully submitted , CAROLEAN "Carol" MUELLER 2 F-7 Lauren Ramezani From: Sent: To: Cc: Subject: Megan Barnes Monday, February 28, 2022 11 :31 AM Lauren Ramezani; Ramzi Awwad Ara Mihranian FW: organic trash collection From: AW <annnwong@yahoo.com> Sent: Monday, February 28, 2022 11:29 AM To: CC <CC@rpvca.gov> Subject: organic trash collection Please advise on how to keep trash bins from acquiring odor and bacteria, attracting critters to the area. Will these be composting bins or just the plastic ones we have currently . Thank you. 1 F-8 Attachment G April 1, 2022 through June 30, 2023 Collector Fee, Environmental Fee and Recycling Rebate/Credit The City receives a Collector Fee and an Environmental Fee from EDCO. Per EDCO’s agreement the amount of the annual fees are fixed, and are automatically adjusted when rates are adjusted. The City Council may allocate these fees among City funds as deemed appropriate. For the increase associated with the organic waste diversion program mandated by the State of California through SB 1383, the increase in fees is only 3% in order to reduce the overall increase in rates. Staff proposes the April 1, 2022 through June 30, 2023 fees be allocated as described below: 1. Collector Fee: EDCO’s Collector Fee is currently an annual amount of $629,250. If the April 1, 2022 through June 30, 2023 rate adjustment request is approved, the Collector Fee increases by 3%. In FY 2021-22 the City will receive approximately $634,000 in Collector Fees. This includes three quarters of the current fee and one quarter of the increased fee. For FY 2022-23 the Collector Fee will increase 3% resulting in a fee of 648,130. Beginning in FY 22-23, Staff proposes that 100% of the fee be deposited into the General Fund. This is to offset some costs related to the residential and arterial streets’ maintenance, repair, and rehabilitation due to EDCO truck traffic. 2. Environmental Fee: EDCO’s current Environmental Fee is an annual amount of $158,900. If approved, the April 1, 2022 through June 30, 2023 Fee increases by 3%. In FY 2021-22 the City will receive approximately $160,100 in Environmental Fees. This includes three quarters of the current fee and one quarter of the increased fee. For FY 2022-23 the Environmental Fee will increase 3% resulting in a total fee of $163,670. Beginning in FY 2022-23, Staff proposes that the fee be deposited into the Waste Reduction Fund. Waste Reduction supports the City’s administration of solid waste management, waste reduction and recycling efforts, used oil grant management, organizing recycling events, EDCO and commercial haulers contract administration, outreach, education, and preparation of annual reports and compliance monitoring. These fees are incorporated in the customers’ rates, and are not a separate line-item in EDCO’s quarterly invoices. G-1 Recycling Rebate/Credit: Until 2013, the City received an annual recycling rebate of $296,000 from EDCO. All funds from the rebate were deposited into the City’s Recycling Fund for use on median beautification projects and the neighborhood beautification grants. However, since 2013 and at the direction of City Council the entire $296,000 is credited back to customers in their billing statements as a separate line item “Recycling Credit or Rebate”. EDCO will continue to provide their customers with the City Council approved recycling credit of $1.58 per month per customer per unit for Area 1 and $1.31 per month per customer per unit for Area 2. The difference between Area 1 and Area 2 ($0.27/month) is due to a legacy formula allocating the recycling credit in Area 2. For April 1, 2022 through June 30, 2023 , there will be no change to the recycling rebate or credit since there has been no change in the California Redemption Value of containers. G-2