Item 9 - Status Report on Solid Waste Franchise Collection Rates in Poway
AGENDA REPORT SUMMARY
TO:
Honorable ...dyor and Members of the City Council
James L. Bowersox, City M~
John D. Fitch, Assistant City ManagerCi~ "r
James R. Williams, Director of Public Services tr
June 13, 1995
FROM:
INITIATED BY:
DATE:
SUBJECT:
Status Report on Solid Waste Franchise Collection Rates in Powa,y
ABSTRACT
Staff is pleased to make advance announcement of decreases to the solid waste and recycling franchise rates
that will take effect on July I, 1995. Rate reductions are possible because the Solid Waste Management
Authority and the San Diego County Board of Supervisors have adopted new tipping fee rates for the county
landfill system. A resolution will be presented to the City Council at its regular June 27, 1995 meeting, for the
purpose of setting and adopting the new franchise rates.
Applying the formula that is included in the franchise agreement for the purposes of rate adjustments, those rates
that are dependent in part upon the tipping fees charged at the landfills will all be adjusted downward. Single
family residential rates will be reduced by 4.39%, and multi-family and commercial rates will be reduced by
6.96%.
r
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMPACT
None.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
A copy of this report has been provided to Jeff Ritchie, Mashburn Waste & Recycling Services.
RECOMMENDATION
It is recommended that the City Council receive and file this status report.
ACTION
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JUN 13 1995 ITEM 9. 1
~ AGENDA REPOR
CITY OF POW A Y
TO:
Honorable Mayor and Members of the City Council
James L. Bowersox, City Man~ ^
John D. Fitch, Assistant City Manager ~
James R. Williams, Director of Public Services 'd
June 13, 1995
FROM:
INITIATED BY:
DATE:
SUBJECT:
Status Report on Solid Waste Franchise Collection Rates in Pow~
BACKGROUND
Recently, the Solid Waste Management Authority recommended, and the San Diego County Board
of Supervisors adopted a reduction in the tipping fees at county landfills from $55 per ton to $47.50
per ton. This new tipping fee schedule will become effective beginning July I, 1995. Tipping fees
are fixed charges determined at each landfill by weighing the amount of refuse delivered to the site
for disposal. Tipping fees are collected to pay for the expense of operating the landfill system.
The City of Poway's exclusive Solid Waste and Recycling Franchise Agreement with Mashburn
Waste and Recycling Services, Inc., that became operative on January I, 1995, included a carefully
crafted formula to be used for future rate adjustments. The formula considers tonnage of solid waste
collected from each category of customer (residential vs. commercial), the consumer price index,
and changes to the landfill tipping fees.
Because of the language of the Franchise Agreement, Poway can reduce the rates charged by the
Franchisee, Mashburn Waste and Recycling Services, Inc., commensurate to the tipping fee rate
reductions.
FINDINGS
The Franchisee and City staff met last week to calculate new rates based upon the formula included
in the franchise agreement. The Agreement stipulated that no consumer price index adjustment for
inflation would be permitted before July I, 1996, but that adjustments in tipping fees would be
accommodated. Based upon the reduction of tipping fees from $55 per ton to $47.50 per ton, single
family residential rates will be reduced by approximately 4.39% and multi-family and commercial
rates will be reduced by approximately 6.96%. Rates for special services that do not include the cost
of disposal at the landfills (tipping fee independent) will not be changed at this time.
ACTION:
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JUN 13 1995 ITEM 9.1
Status Rt:oort on Solid Waste Franchise Collection Rates in Poway
June 13, 1995
Page 2
As a larger percentage of the total rates for collecting general refuse, recyclables and green waste
from single family residential customers goes to operating (collection and transportation) expense
rather than tipping fees, the savings realized by single family residential customers will be slightly
less than that realized by multi-family and commercial customers. Conversely, the Franchisee can
more efficiently collect solid waste from centralized bins as at apartment complexes and commercial
establishments so more of the total fees charged to these customers is associated with tipping fees;
the multi-family and commercial customers therefore will realize a greater cost reduction.
Following is a comparison of some of the more common rates currently charged by the Franchisee
with the corresponding rates that will become effective on July I, 1995:
Type of Service/Rate
Old Rate New Rate
$ 9.35 $ 8.94
$ 15.30 $ 14.63
$ 10.1S $ 9.44
$ 103.90 $ 96.67
$ 87.S0 $ 81.41
Residential Single Can Rate
Residential Unlimited Can Rate
Multi-family Curbside, Single Billing
Multi-family 3 CY bin once weekly
Commercial 3 CY bin once weekly
The complete list of new rates for services under the exclusive franchise agreement will be presented
to the Council at its regularly scheduled June 27, 1995, meeting. A resolution will be presented to
the Council at that meeting to set and adopt the new rates in accordance with Article 8 of the
Franchise Agreement.
ENVIRONMENTAL REVIEW
This action is not subject to CEQA review.
FISCAL IMP ACf None.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
A copy of this report has been provided to Jeff Ritchie, Mashburn Waste & Recycling Services.
RECOMMENDATION
It is recommended that the City Council receive and file this advance status report.
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JUN 1 3 1995 ITEM 9 . 1
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