HomeMy WebLinkAboutReso 63-22 Prop 218 2022 Refuse RateRESOLUTION NO. 63-22
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING MORRO BAY GARBAGE SERVICE
RATE ADJUSTMENT APPLICATION ADJUSTING SOLID WASTE COLLECTION
RATES AND AUTHORIZING MORRO BAY GARBAGE SERVICE TO INCLUDE THE SAN
LUIS OBISPO INTEGRATED WASTE MANAGEMENT AUTHORITY SOLID WASTE
MANAGEMENT FEE AS A SEPARATE LINE ITEM ON ITS BILL TO BE COLLECTED
AND PAID DIRECTLY TO THE SAN LUIS OBISPO INTEGRATED
WASTE MANAGEMENT AUTHORITY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City Council adopted Resolution No. 48-01 approving the Garbage,
Recycling and Greenwaste Franchise Agreement with Morro Bay Garbage Service (MBGS) for
collection services effective January 1, 2002, and setting the initial rates for collection for
residential and commercial customers; and
WHEREAS, pursuant to Article 8.4, the City will use the guidelines and approach outlined
in the City of San Luis Obispo's "Rate Setting Process and Methodology Manual for Integrated
Solid Waste Management Rates,' and
WHEREAS, on April 14, 2022, MBGS District Manager, Jeff Clarin, submitted a rate
adjustment application in conformance with the franchise agreement and rate setting manual
requesting a 9.07% increase to solid waste collection rates effective July 1, 2022; and
WHEREAS, the increase is necessary for MBGS to continue providing safe,
e nvironmentally sound, and reliable solid waste, recycling, and green waste/organics collection,
transportation, and disposal/processing services to Morro Bay citizens; and
WHEREAS, several factors contributed to this rate increase including, increased costs
associated with the purchase and operation of collection vehicles and increased costs associated
with the anerobic digester facility that processes organic waste and is an important facility in our
region's efforts to meet SB 1383 requirements of reducing methane gas through diversion of
o rganic waste from the landfill; and
WHEREAS, on April 6, 2022, San Luis Obispo Integrated Waste Management Authority
(IWMA) Accountant, Barbara Aspernelson submitted to the City a notice regarding the IWMA
Board approval of Resolution No 2022.03.04 establishing a 5.4% Solid Waste Management fee
o n gross hauler receipts, effective July 1 2022; and
WHEREAS, per IWMA Resolution No. 2022-03-04, this fee is to be paid by any company
that has an agreement with a governmental entity that is an IWMA Participating Agency; and
WHEREAS, the City is an IWMA Participating Agency, so MBGS is subject to this fee; and
WHEREAS, Public Resources Code Section 42652.5, 41901, and 41902 authorize local
jurisdictions to collect reasonable and necessary fees to recover the costs associated with the
01181.0014/799259.1
implementation of the IWMA's Resolution No. 2022-03-04 establishing the 5.4% Solid Waste
Management Fee; and
WHEREAS, the City previously authorized MBGS to include the IWMA Solid Waste
Management Fee as a separate line item on the MBGS bill, to be collected and paid directly to
the IWMA, when the IWMA JPA was established; and
WHEREAS, the City wishes to continue authorizing MBGS to include the IWMA Solid
Waste Management Fee as a separate line item on the MBGS bill, to be collected and paid directly
to the IWMA; and
WHEREAS, notices regarding the requested MBGS 9.07% rate increase and IWMA 5.4%
Solid Waste Management Fee, were sent on May 13, 2022, to all property owners and
customers and a public hearing regarding that matter was held on June 28 2022; and
WHEREAS, sufficient protests were not received to prevent the rate increase; and
WHEREAS, a review of the Rate Adjustment Application has been completed in
accordance with the adopted solid waste rate setting policies.
N OW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MORRO BAY, CALIFORNIA, AS FOLLOWS:
S ection 1. The City Council approves the Morro Bay Garbage Service's (MBGS) Rate
Adjustment Application to increase the solid waste collection rates by 9.07% as outlined in Exhibit
A, effective July 1, 2022.The Council hereby ratifies the Proposition 218 process and adopts the
solid waste rates proposed by MBGS as set forth in the Notice of Public Hearing mailed to all
residential and commercial property owners on May 13, 2022, and pursuant to Proportion 218
finds as follows.
a) Fee for Service Provided Only: Revenues derived from the fee may not be used for
any purpose other than that for which the fee was imposed The fees collected are
u sed to pay MBGS for the solid waste collection and disposal services it provides to
the City's residential and commercial customers, and MBGS s accrual of direct and
u nforeseen costs incurred by MBGS as a result of:
1. Increased costs associated with the purchase and operation of collection
vehicles to comply with California Air Resources Board regulations;
2. Increased costs associated with operating the first of its kind anerobic digestion
facility in the United States that resulted in challenges with initial plant
construction, quality and quantity of organic feedstock leading to more frequent
equipment and parts replacement and maintenance and lower than expected
gas production resulting in additional Fats, Oils, and Grease (FOG) processing
equipment purchases not originally contemplated; and
3. Increased AB 939 and franchise fees resulting from the increased revenue
requirement.
b) Fee not to Exceed Cost of Service: Revenues derived from the fee may not exceed
the funds required to provide solid waste service. The City's cost for solid waste
service is established by its agreement with MBGS, which permits MBGS to recover
its actual costs. It is found that MBGS s Rate Adjustment Application and requested
9.07% increase of the solid waste collection rates will not result in more fees being
collected than are needed to provide collection services. This conclusion is further
supported by all findings of fact presented at the City Council hearing, including without
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limitation those facts stated in the accompanying staff report, all of which evidence is
incorporated herein by this reference.
c) Fee not to Exceed Proportional Cost: The amount of the fee may not exceed the
proportional cost of the solid waste service attributable to the parcel. MBGS proposes
that the proposed solid waste rates are reasonably proportional and cost -based, and
meet the general requirements of fairness and equity under Proposition 218. 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 2. The Council has fully considered this matter and has:
a) Reviewed the information submitted herewith regarding the proposed solid waste
service rate adjustment for residential and commercial accounts, the parcels to which
the proposed fee adjustment would apply, and the reasons and basis for the
adjustment and the fees;
b) Provided notice of the proposed fee adjustment to the record owners (or renters
responsible for payment of the fee) of all parcels to which the proposed fee adjustment
would apply in accordance with Article XIIID of the California Constitution;
c) Heard and received all written protests from any owners (or renters) of real property
subject to the fee;
d) Taken and received oral and documentary evidence pertaining to the proposed fee
adjustment, and
e) Been fully informed of this matter.
Section 3. The Council finds that insufficient written protests were presented to prevent
the residential and commercial component of the proposed MBGS solid waste rate schedule from
being imposed.
Section 4. The Council finds that based on these facts and the circumstances and
information received during the public hearing, the changes in residential and commercial solid
waste rates proposed by MBGS are necessary and are hereby adopted, contingent upon there
being no majority protest from a majority of all property owners 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.) Said solid waste rates shall take effect on July 1, 2022
01181.0014/799259.1
Section 5, The City Council authorizes Morro Bay Garbage Service to include the San
Luis Obispo Integrated Waste Management Authority's (IWMA) 5.4% Solid Waste Management
Fee as a separate line item on its bill, to be collected and paid directly to the IWMA, effective July
1, 2022.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 28th day of June 2022 by the following vote:
AYESHeadding, Addis, Barton, Ford, Heller
NOES* None
ABSENT: None
ABSTAIN: None
JOHN HEFDING, iSiayor
ATTEST:
A SWANSON, City Clerk
01181.0014/799259.1
EXHIBIT A
Morro Bay Garbage
Said Waste Service Rates -1
City of Morro Bay
dve 7l1
Price per month for specified waste wheeler collected each week. Residential wstWmers must use the waste wheelers
provided by the garbage company. This solid Service fee for residential trash cdleufions (container with blxk or gray lid)
includes once a week pick-up atone greenwastelorganics container (green lid), and one recycling container (blue lid) The fees
listed below do not include the updated IWMA fee of 5.4 percent of the Garbage Company's gross receipts.
One 19 gallon
1
$14.30
One 32 gallon
One 64 gallon waste
eater container
1
1
$22.88
$45.76
$2,07
$24.95
$49.90
One 96 galloon waste wheeler
Additional per
1
$68.64
$12.47
$1.13
$74.86
$13.60
Rates for a/I commercial customers include recycling or greenwaste/otganics pickup once per weak, included with the garbage
service rate. Customers can choose tram a 64 or 96 gallon blue commingled rtcyde waste wheeler or a 32 or 64 gallon
organics waste wheeler included with the garbage service rate (96 gallon waste wheelers can only be used with green waste
due to weight). The fees listed below do not include the updated IWMA fee of 5.4 percent of the Garbage Company's gross
receipt
tf you need more frequent recycling, Including organlcslgrainweste service, It can be provided at 25% of the garbage
service rates for the specified level of service required.
M 1fA7'#1LY CMERCtAL WW1 WHEBl;:EM SERVECE
One 32 Gallon Waste Wheel
1
$47.24
$51.52
One 32 Gallon Waste Whesler
One 32 Gallon Waste Wheeler
2
4
$92.21
20.61
$149,01
$10.94
51
00.57
$162.52
One 32
Wheeler
5 $194.02
$211.61
One 32 Gallon Waste Wheeler
526644
One 64 Galion Waste Wheeler
$6.21
$74.75
One 64 Gelton Waste Wheeler
$120.57
One 64 Gallon Waste Wheeler
3 $174.99
$190.86
One 64 Galion Waste Wheeler
4 $236.56
$21.45
$258.01
One 64 Gallon Waste Wheeler
5 $295.78
$26.82 $322.60
One 64 Gallon Waste Wheeler
$345,47
$31.32 $376.79
01181.0014/799259.1
One 96 Gallon Waste Wheeler
1
$92.19
One 96 Gallon Waste Wheeler
2
$160.76
$14,58
$175.34
One 96 Gallon Waste Wheeler
3
$236.48
$21.44
$257.92
One 96 Gallon Waste Wheeler
4
$314.68
$28.52
$343.10
One 96 Gallon Waste Wheeler
5
$383.21
$34.74
$417.95
One 96 Gallon Waste Wheeler
6
$468.35
$42.46
$510.81
t4LY'C011111RCt
1 Yd Container
1 Yd Container
1 Yd Container
1 Yd Container
1 Yd Container
1 Yd Container
1 Yd Container
1
$116.32
$1a55
2
$180.21
$113.34
$232.28
.06
4
$241.44
$26.42
6
336.45
$30.50
$419.28
$38.01
$033.41
$67.43
$126.87
$196.55
$253.34
$317.86
$366.95
$45729
$890.8,4
1.5 Yd Container
1.5 Yd Contaner
1.5 Yd Container
1.5 Yd Container
1.5 Yd Container
1.5 Yd Container
1.5 Yd Container
$142.36
$1291
2
$234,69
$21.28
3
1E
$28.5$
$400.36
$36.30
410.84
$43,60
$573,16
$51.97
7
$840.54
$76.24
$155.27
$255.97
$343.77
$436.66
$524.44
$625.13
$917.08
2 Yd Container
2 Yd Container
2 Yd Container
2 Yd Container
2 Yd Container
2 Yd Container
2 Yd Container
1
$170.79
$15.48
2
$298.56
$27.07
4
$509.27
$4617
$622.89
$56.47
$736.48
$66.77
7
$96.a9
$1 .27
$325.63
$436.66
$555.44
$679.36
$1.153.56
3 Yd Container
3 Yd Container
3 Yd Container
3 Yd Container
3 Yd Container
3 Yd Container
3 Yd Container
1
$220.52
$19.99
2
$400.36
$36.30
$563.72
4
$715.16
$64.84
$925.85
$83.94
6
$1,067.83
$96.82
$1,442.62
$130410
$240.51
$436.613
$614.83
$7$3.00
$1,009.79
$1,164.65
$1,573.42
01181.0014/799259.1
4 Yd Contain*
1
$317.86
4 Yd Contain
2
$642,36
$49,18
$591.56
4 Yd Container
$753,01
$821,28
4 Yd Container
4
$91 24
4 Yd Contain
$114,20
$1,373.77
4 Yd Container
$1,425.26
$129.22
$1,554,48
4 Yd Container
$1,853.55
$168.05
.60
6 Yd Container
$436,62
$39.59
6 Yd Container
2
$79274
$71.87
864.61
6 Yd Container
3
$1,116.14
$1,217.34
6 Yd
ner
4
$1,4
$1
$1,544.43
6 Yd Container
$165.20
6 Yd Container
$2,114,32
02
6 Yd Container
$2,856.40
$258.98
$3,115.38
8 Yd Container
$s77.10
$5232
8 Yd Container
2
$1,073.90
$97.37
$1,17127
8 Yd Container
$135i 18
$1,626.15
8 Yd Container
4
$180.65
8 Yd Container
$2,493,95
$226.11
8 Yd Container
$2,821.97
$255.85
$3,077.82
8 Yd Container
$3,045.65
$276,13
1.78
Garbage & extra bags Min'nu
it
Per Occurrence
$11.43
$1.04
$12.47
Overstocked Green waste & extra bags
Minimum/unit
Per Occurrence
$7,42
$0.67
d Blue Bin & extra bags Minimum/unit
Per Occurrence
$5.72
$0.52
$6.24
Monthly charge for additional 64 or 96-gallon
recycle service
$3,82
$0.35
Monthly charge for additional
green waste service
align
Each
$7.42
Monthly dtarge for additional comrnerciai 96-
gallon recycle service
$23,05
$25.14
Service level changes more than once per 12
months
Peri#ccurrence
$10.44
$0,95
$11.39
01181.0014/799259.1
I Item pickup (TV, toilet)
Per while good arbcde/ appliance
Each
smanza
$72.74
$6.59
$23.69
$79.33
Per mattress or box spring
Each
$21.73
$1.97
$23.70
Change waste wheeler size (once per year
Per Ot cunence
$10.44
$0.95
Re-deOver fee -if puled for cdlediions
Per Occurrence $41.56 $3.77 $45.33
Install tricking device on big
Extra bin cleaning
Each
Each
$92.21
$8.36 $100.57
$73.34
$6.65 $79.90
Garbage 'extras en your scheduled pickup day
Per Yard $18.90 $1.71 $20.61
Loose Cardboard
Ps Yard $9.48 $086 $10.34
Garbage extras « NOT ON YOUR SCHEDULED
PICKUP DAY
Per Bag $15.56 $1.41 $16.97
Garbage extras - NOT ON YOUR SCHEDULED
PICKUP DAY
Per Yard $29.99 $2.72 $32.71
Compactors
Per Ton $61,40 $5.57 $66.97
Bin Rental
Par Month
$43.06
$3.90 $46.96
Temp Ban Rental
Par Day
$2,39
$0.22
$2.61
Stand by time
Per Hour
$83p40
$7.56
$90.96
Trip charge
Per Occurrence
$10,44
$0.95
Replacement/repair at market price
$11.39
1. Customers requesting Temporary Bins or Rol -off Box Service can call the office for current rates.
2. Polystyrene {Styrofoam, Plastic 06) Is not collected for recycling and should be thrown away es trash. Please bag Styrofoam paddng
peanuts before placing In trash container,
3. It Is encouraged to bag your trash in the garbage container but do not bag your recyciables or green waste In their respective
containers and keep it loose-
d. Recycling, Greenwaste/Organcds and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars,
etc) before 6:O0arn on collection service day.
5. The fee schedule above only Indtudes the Garbage Corn :any rates and does not Include the tWMA's updated fee of 5.4 percent of
the Garbage Company's grass receipts, which are separately noted an the billings.
6. Cleaning fees will be billed on a time and materials basis_
7_ Late Fees are Imposed for residential customers aver 30 days dellnquent. The fee kg 1.5% per month of the nding
a minimum fee of $5.00. No prior notice Is required, as this late fee policy is stated at the bottom of every bill.
S. Customers ran be responsible for contamination fees.
Any additional recycling, Including grearwrastiaforganic ser'vlcea are charged
01181.0014/799259.1