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city council Meeting: June 9, 1992 Santa Monica, California
To: Mayor and City council
From: city staff
Subject: Resolution Increasing Solid Waste Fund Charges for
commercial/Industrial Refuse Customers using Private
Refuse Hauler Services
INTRODUCTION
This report recommends that city council approve the attached
resolution to implement an increase to the ancillary services
rate differential fee that the city charges those
commercial/industrial customers using private refuse hauler
services. This rate differential includes ancillary services
provided by the City beyond the collection and disposal of
commercial refuse including street sweeping, street corner litter
container service, and hazardous waste stand-by and response
costs.
BACKGROUND
On April 1, 1992, the city of Santa Monica implemented a refuse
rate restructure program based on the volume of service to which
an individual residential or commercial/industrial customer
subscribes. An integral part of this rate restructuring was to
allocate cost-of-service per service group (single family
residential, mUlti-family, commercial) and per service type
(refuse collection, recycling, street sweeping, litter control).
The overall plan is to survey and allocate costs proportionately,
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accurately, and fairly to all segments who benefit from these
City-provided ancillary services.
DISCUSSION
For many years, Santa Monica Municipal Code has provided for
mandatory city-provided refuse service for all residential areas.
In commercial and industrial zoned areas, refuse service has been
open to either city-provided or private hauler service by several
companies. However, the City Solid Waste Fund provides ancillary
services beyond refuse collection and disposal to all segments of
the community. In light of this fact, Municipal Code Section
5227a has provided for a direct surcharge to be assessed to those
customers who subscribe to private refuse hauler service for
provision of these ancillary services from which they benefit.
City-provided refuse service customers are assessed for these
services as part of their overall refuse fee. Analysis indicates
that the current fee of $35.50 per two-month billing cycle
charged to those commercial/industrial customers who subscribe to
a private refuse service does not cover those ancillary costs.
Using FY 92/93 budget figures, the following ancillary expense
analysis was conducted to determine the revised cost of
operations allocation of these ancillary services as they apply
to the 2,279 commercial/industrial customers:
1. Street Sweeping/Litter container service: 50% of the
street sweeping/litter ($1,237,753) is targeted to the
commercial/industrial sector, which amounts to $618,877.
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This amounts to $45.26 per billing period (two months)
per commercial/industrial customer.
2. HazMat Standby: HazMat Team stand-by for HazMat expense
budget is $337,910. Analysis indicated that $36,907 of
this total cost should be allocated to the
commercial/industrial sector. spreading this cost
across the commercial/industrial customer base amounts
to $2.69 per customer per billing period.
Based on this analysis, staff recommends that the fee for
ancillary services be increased by $12.45. As a result the
total revised rate is $47.95 per customer per billing period.
BUDGET/FINANCIAL IMPACT
It is anticipated that the $12.45 increase per customer per
billing period will provide an estimated annual increase of
$94,271 in revenue account # 27-500-441-00000-0150-10000.
RECOMMENDATIONS:
Staff recommends that the City Council adopt the attached
Resolution increasing the ancillary services rate charged to all
commercial refuse customers not subscribing to City-provided
Solid waste services from $35.50 to $47.95.
Prepared by: Stanley E. Scholl, Director of General Services
Tom Dever, Solid waste Superintendent
attachment: Resolution
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RESOLUTION NO. 84l5(CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA REVISING
FEE CHARGED FOR ADMINISTRATIVE/
SPECIAL SERVICES BY THE SOLID WASTE
FUND TO THOSE COMMERCIAL INDUSTRIAL
CUSTOMERS USING PRIVATE REFUSE
SERVICES
WHEREAS, Municipal Code Section 5227 allows monthly
fees for general City sanitation services to be set by
resolution; and
WHEREAS, Municipal Code Section 5227 allow fees ta
be assessed for Administrative/Special services to those
commercial/industrial refuse customers who subscribe to other
than city-provided refuse service; and
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WHEREAS, a study has determined that this fee must
be revised ta reflect true cost-af-services and ensure refuse
rate equilibrium vis-a-vis city and private hauler provided
refuse service; and
WHEREAS, the fees established by this Resolution
are no more than necessary to recover the costs of these services
provided,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION L The fee for Administrative/Special
Services assessed to those commercial/industrial customers
SUbscribing to other than City-provided refuse service shall be
$47.95 (Forty Seven Dollars and Ninety Five Cents) per two month
billing cycle.
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SECTION 2. The city Clerk shall certify to the
adoption of this Resolution, and thenceforth and thereafter the
same shall be in Iull Iorce and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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Adopted and approved this 9th day of June, 1992.
I hereby certify that the foregoing Resolution No. 8415(CCS)
was duly adopted by the City Council of the City of Santa Monica
at a meeting thereof held on June 9, 1992 by the following
Council vote:
Ayes: councilmembers: Abdo , Genser, Holbrook, Ka t z ,
Olsen, Vazquez, Zane
Noes: Councilmembers: None
Abstain: Councilmernbers: None
Absent: Councilmembers: None
ATTEST:
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