TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:October 22, 2024
SUBJECT: Annual Solid Waste Rate Adjustment for 2025
RECOMMENDATION:
1. Adopt resolution approving annual rate adjustment for Solid Waste Collection Services effective January 1, 2025.
2. Approve extension of limited franchise agreements for a final term ending December 31, 2026, with Arakelian Enterprises, Inc. dba Athens Services (Athens Services) (City of Industry, CA), E.J. Harrison and Sons, Inc. (Ventura, CA), and Ware Disposal, Inc. (Santa Ana, CA), and amendment to remove the Limited Franchise Construction and Demolition Tracking Fee.
3. Authorize City Manager to execute amendments to limited franchise agreements in final form approved by City Attorney.
4. Find that this is not a project as defined under the California Environmental Quality Act because this action will not result in a direct or foreseeable indirect physical change in the environment [14 CCR 15060(c)].
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. Cost of staff time to prepare the staff report is included in the Adopted FY 2024-25 Solid Waste Fund Budget. Proposed solid waste rates would increase 3.29 percent in accordance with the Solid Waste Franchise Agreement.
BACKGROUND:
The City utilizes exclusive and limited franchise agreements to manage waste, recycling, and organic waste collection and street sweeping services.
Annual Solid Waste Rate Adjustment for 2025
October 22, 2024
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Exclusive Franchise Agreement
City Council approved a solid waste franchise agreement with Athens Services on March 9, 2021, to provide citywide exclusive residential and commercial waste collection and street sweeping services. The 2021 solid waste agreement establishes the basis for annual solid waste rate adjustments, which require annual approval by City Council to authorize the rate adjustments.
Rate Adjustments
Solid waste maximum service rates are adjusted annually in accordance with the methodology detailed in Article 4 of the City’s exclusive and limited franchise agreements. The agreements specify that rates will be adjusted based on the change in the Consumer Price Index (CPI) between the base year, which shall be the prior preceding 12-month period ending July 31, and the preceding 12-month period ending July 31 with a floor of 1.0 percent and a cap of 4.0 percent.
Limited Franchise Agreements
Limited franchise haulers provide temporary waste and recycling services for short-term activities such as residential remodels, home and yard cleanups, and commercial construction and demolition (C&D) projects. Temporary service is defined as service that occurs for a maximum of 30 days per specific location per calendar year or service provided for C&D projects that require a City building and/or grading permit. The City currently has four authorized limited franchise providers for temporary waste collection service, each with contracts expiring December 31, 2024. The limited franchise agreements provide for an additional two-year extension at the City’s sole discretion, provided that the haulers have met the minimum performance and diversion requirements.
DISCUSSION/ANALYSIS:
Rate Adjustments
Annual rate changes are calculated based on the CPI for All Urban Consumers, Los Angeles-Long Beach-Anaheim (CPI-U) published by the United States Bureau of Labor Statistics. If the calculation of the CPI-U exceeds 4.0 percent or is less than 1.0 percent, the total adjustment will be set at 4.0 percent or 1.0 percent, respectively. The CPI-U change between the base year ending July 31, 2023, and the most recent past year, ending July 31, 2024, was 3.29 percent.
With the 3.29 percent CPI-U, the maximum standard monthly residential (3-cart bundled) service rate will increase from $26.34 to $27.21, an increase of $0.87.
The maximum monthly service rate for once-a-week service of a standard three- cubic-yard commercial bin bundled rate will increase from $189.27 to $195.50, an increase of $6.23. The maximum monthly service rate for once-a-week service of a standard 40-cubic-yard roll-off dumpster, will increase from $227.14 to $234.61, Annual Solid Waste Rate Adjustment for 2025
October 22, 2024
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an increase of $7.47.
A full summary of the existing 2024 rates and proposed 2025 rates for residential, commercial, and temporary solid waste services provided under the exclusive and limited franchise agreements is provided in Attachment #1.
Upon approval, the updated service rate information will be posted on the City’s website. Athens Services will notify customers of the changes in their monthly or bi-monthly bills. The attached resolution (Attachment #2) establishes the annual rate adjustments for solid waste collection services effective January 1, 2025.
Limited Franchise Agreements
Staff contacted the four current limited franchise holders to gauge their interest in an extension of their agreements. Three of the four responded in the affirmative, while the fourth did not respond to staff’s inquiries within the allotted timeframe.
The three who indicated that they would accept a contract extension have met the contractual performance and diversion requirements needed to offer a contract extension. Therefore, staff is requesting approval to process two-year extensions with Athens Services, E.J. Harrison and Sons, and Ware Disposal until December 31, 2026.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $250 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $250 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $250 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $250 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $250 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made. The Levine Act forms for Athens Services, E.J. Harrison and Sons, Inc., and Ware Disposal, Inc. are included (Attachment Nos. 3, 4, and 5).
Annual Solid Waste Rate Adjustment for 2025
October 22, 2024
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COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Sarah McGurk, Sustainability Analyst
Attachments:
Attachment #1 – Proposed 2025 Solid Waste Service Rates Attachment #2 – Resolution to Adopt 2025 Solid Waste Service Rate Schedules
Attachment #3 – Levine Act Form for Arakelian Enterprises, Inc., dba Athens Services
Attachment #4 – Levin Act Form for E.J. Harrison and Sons, Inc.
Attachment #5 – Levine Act Form for Ware Disposal, Inc.
DPW: 810-40\sm\ev\Council\2024\102224\Solid Waste Rate Adjustment staff report.docx