SR-503-001-02 (6)
G3:SES:NM:MM:ZH
CounCIl MeetIng:
May 14, 1985
5t?3-001'-02-
Santa Monica, CalIfornIa
IJ-E
MY 1 4 1985
TO: Mayor and CIty CouncIl
FROM: CIty Staff
SOBJECT: RecommendatIon for Approval of a Refuse Rate Increase
IntroductIon
ThIS report presents InformatIon on the status of Refuse fund and
recommends CouncIl adopt a 15% rate Increase to elImInate a
proJected defICIt for the next two budget years.
B~ckground
The scope of serVIces prOVIded through the refuse enterprIse
Includes refuse collectIon and dIsposal, alley cleanIng, street
sweepIng, muniCIpal compostIng, asphal t and concrete recyclIng
and a curbSIde recyclIng program. These operatIons are funded by
a current annual budget of $5,S26,274. As of June 30, 1985 It 15
estImated that the Refuse Fund balance WIll be approxImately
$71,300.
The CIty prOVIdes serVIce to 46,000 reSIdentIal unIts
and approxImately 50% of the commerCIal customers. The remaInIng
commerCIal customers use a prIvate collector of theIr chOIce.
These serVIces are operated on an enterpr Ise baSIS whereby user
fees, sale of recycled materIals and other related revenues
offset the entIre cost of these operatIons. As the cost of these
serVIces Increases, rates must be adJusted upward to Insure
suffICIent revenue to cover the cost.
Rates were last Increased
by 15% In July, 19B3.
At that t~me It was prOJected that the
//-.R
MAY 1 4 \985
-1-
GS: SES: NM: ro1.M: ZH
Council Meeting:
May 14, 1985
Santa Monica, Cal1forn1a
1ncrease would sustain the refuse operation for two years w1thout
requlr 1ng further lncreases.
'rhis pro) ect10n has proven to be
accurate lnasmuch as the proJected fund balance for June 3D, 1985
1S approxlmately $71,300, Wh1Ch is very near the break-even
p01nt.
However,
operatlng
costs
cont1nue
to
lncrease.
Current
proJectlons 1ndicate that lf the same level of serVlce 1S
provlded w1thout a rate lncrease, yearly deflclts w11l occur 1n
the amount of $483,500 1n budget year 1985jij6, and $820,700 1n
1986/87 for a cumulatlve def1c1t of $1,232,900 (net of FY 1984-85
ending balance.).
(See Append1ces I and II respectlvely)
Proposal
TnlS report proposes that a 15% rate lncrease be adopted to
provlde revenue for the next two years to cover these lncreased
costs.
~hlS lncrease w111 provide enough addltlonal revenue
($1,276,650) WhlCh 1n conjuctlon with the proJected June 30, 1985
fund balance of $71,300 wlll cover the proJected operatlng
deficlt (~1,304,20a) and allow for a posltlve fund balance at the
end of the two years as a margin of safety.
(See Appendices III
and IV)
D1Scusslon of Cost Increases
~hlle certa1n cost factors have remalned relatively stable over
the past two years most costs continue to r1se.
The ma) or
categor1es where past and proJected cost increases are occurring
are the follow1ng:
- 2 -
GS:SES:NM:MM:ZH
Councll Meetlng:
May 14, 1985
Santa Monlca, Californla
Labor - Due to recent MOO settlements and
decision to lnclude
labor costs of Tnird Street Mall Malntenance,
to add two
addltonal positions for alley cleaning, and to add one additional
heavy tr Llck dr 1 ver due to the much longer haul distance to the
landfill in the San Fernando Valley than the landfill previously
used, labor costs are proJected to increase 25% over the next two
years or a total of nearly $550,000.
Third Street Mall
Maintenance costs have previously been funded in the General
Fund.
Staff considers mall maintenance costs to be primarily a
street cleaning serVice and should be funded wlthln the Refuse
Fund.
Operating Costs
Including dump fees, fuel costs, utill ties,
bins, bln repair costs and other costs are proJected to increase
an average of 4.5% per year.
rhe Clty'S administrative indirect
charge, the amount transferred from the Refuse Fund to the
General Fund to cover General Fund expenses such as vehicle
repair, City Attorney's office, Finance Department and personnel
costs, amounts to nearly 25% of the entire refuse budget and lS
expected to increase at least 6% per year.
Capital Equipment
Cap1tal cost such as new refuse trucks,
longhaul transfer trucks and trailer s, and street sweepers are
proJected to increase at least 6% per year.
Recyclin9 - Potential for Cost Reduct10n
For FY 1985-86 the CltylS Recycl1ng Progam 1S proJected to cost
approximately $347,300 and proJected to generate approximately
$135,200 in revenue result1ng in a net cost of $212,100 to
- 3 -
GS:SES:NM:MM:ZH
CounCl1 Meet1ng:
May 14, 1985
Santa Monica, Californ~a
operate the program.
The impact of operating the Recycl1ng
Program W1 th 1n the Refuse Enterpr 1 se 1S approx 1Ina tely $.38 per
month per household 1.
For compar1son
purposes,
lf the
Recycl1ng program were dlscontinued June 30, 1985, the rate
increase necessary to sustaln the refuse fund would be 10%
lnstead of 15%.
Staff 1S not proposlng to dlscontinue the
Recycl1ng program. However, staff bel1eves there are operatlonal
al ternat1ves to the current program that could reduce costs by
somewhat alterlng the level of serVlce.
For 1nstance, one
alternatlve would be to use pr~vate, 11censed recyclers to
collect recyclables set on the curbslde instead of the current
method of uSlng Clty labor and equipment.
Inasmuch as the Clty Councll author1zed the current Recycllng
Program,
Staff
requests
Counc11
approval
to
lnvestlgate
al ternatlves to the Recycllng Program that w111 be more cost
effectlve.
It 1S proposed that such a study be conducted durlng the f1rst
SlX months of the 1985/86 flscal year and that any recommended
changes be brought before Councll at the time of tne 85/86
mld-year reVlew.
Summary
Due to contlnulng cost lncreases ln refuse collectlon, street
cleanlng, and recycllng operatlons, lt 1S necessary to 1mplement
1. $212,100 ~ 46,000 household ~ 12 months = $.384/household
/month
- 4 -
GS:SES:NM:MM:ZH
CouncIl Meeting:
May 14, 1985
Santa MonIca, Callfornla
a 15% across-the-board rate Increase for refuse serVIces to
maintaIn present service levels and to operate on an enterprIse
baSIS for the next two years. It IS necessary to implement thIS
increase effectIve June 1, 1985 so that the full Impact of the
increased revenue WIll be realIzed by August 1, 1985.
ImplementatIon of a 15% rate Increase WIll result In the
followIng monthly rates for tYPIcal Santa Monlca customers.
*USER TYPE
CURRENT
WITH 15% INCREASE
Single FamIly
$ 8.70
10.01
10 UnIt Apartment
wIth 2 bIns 2/wk.
55.35
63.65
Commercial SerVIce
1 bin 6/wk.
119.20
139.08
Commercial SerVIce
1 bIn 2/wk.
39.75
45.71
*(See Attached ResolutIon for complete fee schedule)
The rates resul tlng from thIS Increase WIll put Santa MonIca
Refuse senllce rates for resIdentIal customers relatIvely hIgh
when compared to local comparable cItIes.
(See ExhIbIt I)
However, Santa MonIca Incl udes the cost of street cleanlng and
recyclIng and a minImum of twice per week serVIce In the refuse
fee.
The comparable CItIes lIsted Include the cost of refuse
collectIon only In theIr
rates.
The proposed rates for
commerCIal users remaIn very competItIve with other agencIes and
local prIvate refuse companIes.
- 5 -
GS:SES:NM:MM:ZH
Counc~l f.\'leet~ng:
May 14, 1985
Santa Mon1ca, Cal~forn1a
Recommendation
1. It is recommended that the C1 ty Counc1l adopt the attached
Resolution
Increasing
rates
for
refuse collection and
d~sposal by 15%.
2. It 1S further recommended that Counc1l d~rect Staff to
Investigate cost saVIng alternat~ves to the current RecyclIng
Program and present any recommendat1ons for modif~cation at
the mId-year budget reVIew for the 85/86 budget year.
Prepared by: Stanley E. Scholl, Director of General Services
Neil C. M~ller, Asst. DIrector of General SerVIces
M~chael MIlliner, AdmInIstrat~ve Analyst
Attachments: ResolutIon
EXhIbIt I
Append~ces 1, 2, 3, 4
- 6 -
VOTE: Affirmatlve:
~ ~egative:
~ Abstain: _ r? J
g Absent: ~ r-~
~ ~ PROOF VOTE<;~ 1';ITH AKOTHER PERS0N' BEFORE ANYTHING
~ DlSTRlBUTlO~: ORIGINAL ~o be signed, sealed and
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BEFORE DISTRIBUTION CHECK CONTENT OF ALL
DISTRIBUTION OF RESOLUTION # ,~rJP
~/;y/}'s---
If - fi
/Vc?
1 C/. ~~ Z-
Council Meeting Date
Agenda Item It
Was it amended?
FOR CITY C~ERK'S ACTION
ORDINANCE it
Introduced:
Adopted:
AIl~S PUBLISH ALOPTED OFDINANCES*
*Cross out Attorney's approval
NEWSPAPER PUBLICATION (Date:
filed ln Vault.
)
)
Department originating staff report (
Management Serv.~~e? Lynne Ba~rette -vrdlnances only
, -
Agency mentioned 2n document or staff report
~
(certifJ.ed?)
Subject file (agenda packet) 1
Others:
Counter file 1
.
Airport
Parklng Auth.
Audltorum
Personnel
SE~D FOUR COPIES OF ALL ORDINANCES TO:
COD~D SYSTEMS, Attn Peter- Maclearie
120 Hain"-"'tT~et
. Av.J'1 r N~w Jersey _07717 "
SEND F8UR COPIES OF MIL ORDTNANCJ~~TO:
PRESIDING JUDGE
SANTA MONICA MUNICIPAL COURT
,1725 MAIN STREET
SANTA MONICA, CA 90401
-.
"'Check COde SectlOns before sendl11g.
TOTAL COPIES
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RESOLurION NO. 7018(CCS)
(CITY COUNCIL SERIES)
A RES0LUTION OF THE CITY COUNCIL OF THE CITY OF SAclTA MONICA
REVISING FEES CHARGED FOR GENERAL CITY SANITIATION SERVICES,
SANITATION aI~ RENTAL AND ROLL-OUT SERVICES
WHEREAS, MuniCIpal Code SectIon 5233 allows fees for
general CIty sanItatIon services to be set by resolutIon; and
wHEREAS, MunICIpal Code SectIon 52280 allows fees for
CIty sanItatIon bIn rental and roll-out fees to be sat by
resolutIon; and
WHEREAS, a study nas determIned the need to Increase all
sanltatlon fees: and
WHEREAS, tne fees establlshed by thIS ResolutIon are no
more than necessary to recover the costs of the serVlces
prOVIded,
NOW', 'fHEREFORE, THE CITY COUi.'ICIL OF 'fHE CI'I'Y OF SANrA
MONICA DOES RESOLVE AS FOLLOwS:
SECTION 1.
The charges for sanItatIon serVIce, as
prOVIded for In MunICIpal Code SectIon 5233, shall be as fallows:
Type of Service
Nonthly Charge
Residential Single Family
$10.01 per unlt
{-iul tl Family
Apartments,
Apartments,
Apartments,
2-50 unlts
51-100 units
100 or more unlts
$ 5.06 per unl.t
4.60 per unlt
4.26 per unlt
Boardlng Houses, Sleeplng Rooms
and Miscellaneous Services
$ 4.26 per room
Water Accounts Not USing City
Refuse Service
$ 6.67
Buslness and Commerclal Customers
without Approved Bins
TWlce Weekly $20.53 per 1/2 cubic
yard
Three Times Weekly 30.76 per 1/2 cubic
yard
SiX Tlmes i'Jee k1y 61.53 per 1/2 CUblC
yard
BUSlness and Commerclal
Customers USlng 2 Yard
Blns
TWice vleekly
Three Tlmes weekly
SiX rlmes ~eekly
$ 45.71
68.54
137.0B
SECT iON 2.
The fees for bln rental from the Cl ty, as
provided for In Munlclpal Code SectIon 5228D, Shall be as
follows:
Type of Bln
Frequency of Collectlon
TWice Weekly 6 TInes Weekly
2 Yare
$7.25/month
$2l.74/month
SECTION 3.
The fees for roll-out charges, as prOVided
for in Munlclpal Code Section 522BD, shall be as follows:
TWlce Weekly Collectlon
SlX Tlmes Weekly Collection
$lO.24/month
30.59/month
SECTION 4.
rhe fee shall become effect i ve on June 1,
1985, or upon its adm~n~strative implementat~on, whIchever last
occurs.
SECTION 5. The C~ty Clerk snaIl certIfy to the adopt~on
of th~s ResolutIon, and thenceforth and thereafter the same shall
be In full force and effect.
APPROVED AS TO FORM:
~\-..~ .- Q;:
Robert Myers, CIty At rney~
Adopted and approved thlS 14th day of May, 1985.
/1 jj Mi
/ V v - MU Temporl
I hereby certify that the foregoIng ResolutIon No. 7018Cccs)
was duly adopted by the City Councll of the Clty of Santa Monlca
at a meetlng thereof held on May 14, 1985 by the followIng
CouncIl vote:
Ayes: Councilmembe~s:
Conn, Epstein, Jennings, Katz and
Zane
Noes: Councllmembers:
None
Abstain: Councllmembers:
None
Absent: Councilmembers:
Edwards and Mayor Reed
ATTEST:
&: t-Je'l'~
Denritv CIty ~~k
~ -
. ~
,
/ /--- 3
y.s.y 1.1, 19',5
.
Froml Mr. C. R. TavE'nport, 1:86 A Pr::..rceto~ ~.t., 3.','-., Ca., j04C4, 429-2023.
To : Mayor Reed, Members of t~e Clty Co~rc~~: ( \ ~€pd, ( ) Epstl~n. ( ) Je~nlngs,
( ) Katz, ( ) Edwards, ( ) Zane, ( ) Conn ((by reprOGUctlon 10 your ~o~se from this
or.e master copy, and
( ) ar.y members of staff or 1rterested partles. / '/;
~ -:/ ~ /("l;~ +J{ _
-/ ~-_-<./,-
Gent1epersor:s:
I'll be interested In the staff report, dlSCUEE10L, and fir.al reccmmendations
on ,-~ifemlI:i;---"cos~_ 8aV~T'g alt~rnatives to the current RecyclH,g__r_rog~_~"_.
I .ay not be available to audit all tnls activlt%~. I may be out gatherlng
newspaper o~ my own inltiat1ve for 1. a source of readlng material or 2. eventual
recycling for prof! t or. my own. Even 80, I den't see how ar.yor'e can really make
a great profit in the activity. I have recycloopaper for seme ti~e row and
_fl~d it difficu~t to gather mere t~an a tor- a week. At S~O.CJ down to $20.00
and now $15.00 a ton for clean paper ($12.CJ for SlICks, colored, and dirty paper)
an ind~v1dual must be very lucky with flndl.:.g huge piles of paper to make more than
11.00 an hour - not counting expenses of equlpmert, tl~e for unloadlng. breakdowns
et. ale Ro~ ~~r. the City pay a ml~imum wage, maintain much mere expensive
equil'mefltf and Illake_ any sort of a prcfit from the operatior.? L reallz~2~
haYe~thjLpower to cer-tralized gathering bina, dcnatiors from willing neighbors,
free delivery, massive o al'lpaigns , prahi bl. tlor s aga.u:st pilferage, and all of the
other Qomjnate_powers of BIg Government. ~ven so, how can yo~ make a profit?
Yo~ will, of ccurse, c~r.cemn those of us who ccrtl'ue gatterir.g paper ard cans
or our own - frofl prlvate g&rba[e cL~tLl~ers, frem pile~ or contalLers iri separate
locaticns fer prlvate pick up - as crl.~lrals and offenders to the publICk good -
I guess. MllS~_ '!'~" a} 1_ _~e_~?m~ _servants to tre Big City Government and all its I Blessed
C~fl~~~Q!,~J!LU1_?
Item II-A, .~h~ Homeless_4o need help. Perhaps they cculd be gat~erlng newspaper
and cans - cardboard if there was a place to sell ~ t locally. 1:0, there are too
many of us doirg all that right new. TherF lbn't enough for us to all be doing the
same thing. I do commend the recent actlon of returning no~eless perEons to the~r
point of origineG I recleved a three page JIIemo frOM 5en. tavid Roberti
cr, h~s efforts to su;port Rent CcrJtrol, 'Ier.a.'1t Leglslatlcf ete. today - b'.lt Lot
or..e word alout Tenants Help~r,g Te~~a~ts. w,'1J' rct s. fee cr wf'2.1 thy ter:aT to? for
low C0st hcu~l~g - pulllC or ~r~v~~e1 Ther tte l~rc~crf~ wee b~llt and own
expprslve houslrg ur..dpr our systeq of prlvete enterprIse could be freed of all this
overly expensive regulatl.cr. ard cor.trol. They cou:d be er.cGuraged to go on providing
market rate hou,su:g to the extent of "Unlforn Buildlrg ard Safety Calles" without
the added cost of speclal fees, hearl~gs, delays, ~nn zealous ov~r-regulatio~G
Wh@T! _~__!!:o~jr~~-Q,aYE"_--..any rocr.J fer hC'J.slrg those who COMe l-J.ere fr'_1Jl other areas _
sene tr.e, back ho~e where thpy ~ame frem.
-- - - ~- -
Item 4-Az Proclamat2on for Older Amerlc~~8 - Good - l~y not' They need all t~~ _h~l~
ar..d encourabement we can get for tnev..
Items e-A and :B; Why the_1~_E!~__~~__.Develop;ner.t AgreePlel'1ts? Can't anyor:e .10 anythlng
up to Ur:iform lmildi~g and Safety Cedes with r_1S cr h"'l' "FrlC"2.t" P=opert.:rtl N1.ttoUt
C~ty, Co~nty, State, a~d Federal Intervertlcr for Fee~, Agre~~erts, Ccnc€ssiocs etc.???
It's a wor~er we get arythlrg ~o~e in t~lE tcw~ the~e dae, cays.
Item l4-A What about the St~~~~ Qf Men - a slrgle Ma~ born and r~isec here 1f S.W"
and in need of a lot more helpr
Item l4-A Wh~~ does all tle m9~e.z_C_8~~ fro.!!,! (Wealthy Tenants?) for_low_Qost hou::Iing
thus proposed on Parking Authority Lots (n~)l O.f-~.JISh1.re) (near the. bb.eeaacch) _ete ?!??
(/ p)'/I> 7' ~ .. ..
POP~YOUR C01,SI.DERA~.!91'1 _. \"-' /' //. /,/\.~i/(-'!~? ["-(L'r~-:?-'J-Z/jf
/.4~)..Lcn'JV'cf~..(r-"'l}ju:.&la.i;~'irJ/)C ..-- ---ft. '1ravlnpor '- ,~
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