HomeMy WebLinkAbout2015-04-09 Study Session - Solid Waste Recycling Franchise Tax Roll Billing CITY OF rlM DESERT
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NOTICE OF STUDY SESSION
OF THE
PALM DESERT CITY COUNCIL
NOTICE IS HEREBY GIVEN that the Palm Desert City Council will convene for a
Study Session Thursday, April 9, 2015, at 2:00 p.m. in the
Administrative Conference Room of the Palm Desert Civic Center, 73510 Fred Waring
Drive, Palm Desert, California 92260. Said Study Session will be for the purpose of
discussing Solid Waste, Recycling, Franchise, and Tax Roll Billing.
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RA HELLE D. KLASSE , CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
APRIL 3, 2015
NO ACTION WILL BE TAKEN AT THE STUDY SESSION.
PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY.
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TENTATIVE AGREEMENT NEGOTIATION ITEMS:
• TERMS AND PRODUCER PRICE INDEX:
a Current term expires May 31 , 2015;
a Agreement: Existing one four (4) year extension term to May 31 , 2019
a Negotiated: Additional four (4) term to May 31 , 2023
a Total 8 years will provide Burrtec financing options for a new
fleet of trucks
• Burrtec to hold Producer Price Index (PPI) Increase for three (3)
years for COMMERCIAL ONLY
• FEES AND PROGRAMS:
a Residential Tax Roll Billing
a New Recycle Fee Based on Nexus Study
a New Vehicle Impact Fee Based on Road Maintenance & Refuse/Recycle
Vehicle Impact Study
a Food Waste/Organics Recycle Program — AB 1826
2015 IMPLEMENTATION SCHEDULE
AND
OVERVIEW OF NEGOTIATION ITEMS
TAX ROLL BILLING —
• Burrtec agrees to following:
a Pay 10% ($1 .06) for Tax Roll Billing
• Tax Roll Billing of $1 .06 allocation:
a $.73 applied to Recycle Fund
a $.33 applied to General Fund
Notes:
• Implement Residential Tax Roll Billing excluding Master Billed
Accounts (HOA's) and Commercial Accounts
• The proposed 10% discount is based on an estimate of the haulers
savings as a result of bad debt, labor, and mail costs, and other
miscellaneous costs
• 10% is consistent with Master Billed Account savings
2016 IMPLEMENTATION SCHEDULE
AND
OVERVIEW OF NEGOTIATION ITEMS
RECYCLE FEE AND VEHICLE IMPACT FEE - :
• Fee Implementation - 100% in 2016 to all residential and commercial
a Note: Recycle Program expenses will be paid from AB939; however, $.73 of
$1 .06 to be applied to Recycle Fund - 2015
a Note: Road Maintenance expenses are currently paid through AB939 Fund
• Recycle Fee:
a Fee to Residential $0.73 (96 gallon)
a Fee to Commercial $6.81 (3 yards at 1 x per week)
a Replaces current AB939 Fee
• Vehicle Impact Fee (Road Maintenance Fee):
a Fee to Residential $0.69 (96 gallon)
a Fee to Commercial $6.43 (3 yards at 1 x per week)
a Provides funding to repair streets
2016 IMPLEMENTATION SCHEDULE
AND
OVERVIEW OF NEGOTIATION ITEMS
RECYCLE FEE AND VEHICLE IMPACT FEE -
• Total Rate Impact to Residential and Commercial:
a Rate Increase to Residential: $1 .42
(Recycle and Vehicle Fees)
a Rate Increase to Commercial: $13.24
(Recycle and Vehicle Fees)
(Fee varies based on size of bin, number of bins, and days
serviced)
• Note: Fees will not increase with PPI increase - remain the same,
unless the City increases
2016 IMPLEMENTATION SCHEDULE
AND
OVERVIEW OF NEGOTIATION ITEMS
FOOD/ORGANICS WASTE RECYCLE PROGRAM - :
• AB 1826 — Signed by Governor Jerry Brown on September 28,
2014
a Commences April 1 , 2016 — businesses that generate
8 cubic yards or more per week of SOLID WASTE must source
separate (recycle) food and green (organic) waste
a January 1 , 2017 — reduced to 4 cubic yards or more
per week of ORGANICS
a January 1 , 2019 — reduced to 4 cubic yards or more
per week of SOLID WASTE
Note: On or after January 1 , 2020 amount could be
reduced to 2 cubic yards SOLID WASTE generated.
• Implement Program and New Rate Structure in 2016
COACHELLA VALLEY CITIES TAX ROLL BILLING SURVEY
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, . CITY REFUSE BILLING METHOD
Cathedral City Tax Roll
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Coachella Tax Roll
Desert Hot Springs Hauler
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-- Indian Wells Tax Roll -.
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Indio Tax Roll ---- *- - -' ---- ' ----
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-- -- - - • -... La Quinta Tax Roll
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Palm Desert Hauler
Palm Springs Hauler
- -
Rancho Mirage Hauler
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COACHELLA VALLEY CITIES SERVICE RATE SURVEY
RESIDENTIAL SERVICE RATE
1
Jurisdiction Residential Residential
Tax Roll Rate Direct Billed
- 0 A Rate I A
Cathedral $15.25 $17.57
City
Coachella $18.12 $18.12
4
Indio $15.62 $19.95
La Qu i nta $12.60 $14.03 „- a,r
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Palm Desert N/A *$10.71
* City paid 2013 rate increase with AB939 funds
2014 Rate Including Recycle and Vehicle
Impact Fees:
$10.71 + $1.42 = $12.13
COACHELLA VALLEY CITIES SERVICE RATE SURVEY
COMMERCIAL SERVICE RATE
Jurisdiction Commercial Jurisdiction Commercial
3yd (1x per week) 3yd (3x per week) -
- 2014 2014
Cathedral City $140.85 Cathedral City $370.05
Coachella $109.48 Coachella $308.68
Indio $105.63 Indio $296.86
La Quinta $115.91 La Quinta $298.76
Palm Desert *$99.52 Palm Desert *$231.95
* City paid 2013 rate increase with AB939 funds * City paid 2013 rate increase with AB939 funds
2014 Rate Including Recycle and 2014 Rate Including Recycle and
Vehicle Impact Fees: Vehicle Impact Fees:
$99.52 + $13.24= $113.60 $231 .95 + $30.04 = $264.77
Note: As service increase fees increase but at a
lower rate. (Not a one for one calculation.)
DETAILED IMPLEMENTATION SCHEDULE
• Tax Roll Billing/Agreement - 2015
a Public Hearing for Tax Roll Billing, Renewal/Extension, and first
Reading of Amended Ordinance — April 23, 2015
a Second Reading of Amended Ordinance — May 14, 2015
• Annual PPI Rate Increase — June 11 , 2015
(County approval of tipping fees — mid/end of May)
• Approval of New Franchise Agreement — June 11 , 2015
a Submit Tax Roll Billing Documents to County Assessor's
Office — Mid-August, 2015
• New Recycle and Vehicle Impact Fees and Food/Organics
Waste Recycle Program - 2016
a Commence Public Notification March/April 2016
a Public Hearing — May/June 2016
a Implement fees and program — July 1 , 2016
a Update and apply new rates to County Assessors Office —
Mid August, 2016
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