HomeMy WebLinkAboutC27410 Solid Waste and Recycling and Preparation of a Vehicle Impact Fee Nexus StudyCITY OF PALM DESERT
SPECIAL PROGRAMS DEPARTMENT
INFORMATION STAFF REPORT
REQUEST: PROVIDE DIRECTION ON SOLID WASTE AND RECYCLING
RESIDENTIAL TAX ROLL BILLING, IMPLEMENTATION OF
COMMERCIAL RECYCLE FEE, AND PREPARATION OF A VEHICLE
IMPACT FEE NEXUS STUDY.
SUBMITTED BY: Frankie Riddle, Director of Special Programs
DATE: March 24, 2011
CONTENTS: None
Recommendation
Provide staff direction relative to the implementation of the following:
1. Tax Roll Billing for residential solid waste and recycling to be implemented with the FY
2011/12 secured property tax roll.
2. Implementation of a commercial recycle fee set at 50% of the service fee and effective
as of July 1, 2012.
3. Preparation of vehicle impact fee associated with Burrtec vehicle use of City
streets.
Discussion
Starting in 2010, City staff met with representatives of Burrtec Waste & Recycling to discuss the
issue of non-payment by residential customers and how best to collect the fee while still
providing the service. The City did not want Burrtec to stop service, thus possibly creating a
health and safety issue; however, this would require that Burrtec continue to provide service to
customers not paying for services. As a result of the initial meetings, discussion commenced on
possible Tax Roll Billing for residential customers within Palm Desert, which would provide
Burrtec with compensation while avoiding potential health and safety issues as a result of
stockpiling of trash in yards and/or illegal dumping of trash. The City currently requires that
each residence have trash and recycling on premises; however, this does not provide an
effective way to enforce payment for services rendered except through small claims, which is
costly and time consuming, and does not eliminate the issue of providing service for non-
payment.
During these meetings, Burrtec also brought up the issue of the City's Free Commercial Recycle
Program and the State of California's soon to be mandatory commercial recycle program
through the approval of Assembly Bill (AB) 32 and its impact on their services. District Manager
Frank Orlett indicated that, with the implementation of the mandatory commercial recycle
program, Burrtec would be significantly impacted and requested that the City consider a recycle
fee on commercial accounts to offset costs that will be incurred to implement the mandatory
program.
CITY COUNCIL STAFF REPORT
MARCH 24, 2011
PAGE 2
Staff continued to meet with Burrtec to negotiate a discounted residential rate to implement Tax
Roll Billing. Burrtec has agreed to an 11 % discount on residential customers excluding master
billed accounts (i.e., gated communities with one master bill). The proposed 11 % discount is
based on an estimate of the haulers savings as a result of bad debt, labor, and other costs
associated with the collection of bad debts. The discount is also consistent with what is offered
to Master Billed accounts by Burrtec. In addition, it was discussed that the proposed
commercial recycle rate would be set at 50% of the commercial service fee, which is 58% of the
full commercial rate, or 29% of the full commercial rate. (The components of commercial rate
structure are refuse disposal at 32%, recycling fee at 10%, and the service fee at 58%.) The
proposed rate translates into a fee of $25.69 for a 3-yard bin serviced once per week. (The cost
will increase based on bin size and number of service days.)
At this time, staff is also proposing that the City consider implementing a vehicle impact fee
associated with Burrtec vehicle use on Palm Desert streets. Upon Council direction, staff will
prepare a Nexus Study to determine if this is possible, how the fee should be applied, if AB939
funds can be used to offset the fee, and other details associated with such fee. The concept
would be to implement a Vehicle Impact Fee and determine if the costs associated with street
repair/maintenance could be applied to the Recycle Fee, thereby eliminating the need to
increase the rates.
If City Council approves moving forward with the above items, the following procedures and
time frame would be followed:
• Prepare amendments to the Franchise Agreement and Palm Desert Municipal Code as
well as prepare Vehicle Impact Fee Nexus Study.
• Bring forward an amendment to the Franchise Agreement between the City and Burrtec
and amendment to the Palm Desert Municipal Code at the April 28, 2011, meeting.
• Bring forward proposed vehicle impact fee with the amendment of the Franchise
Agreement at the April 28, 2011, meeting.
• Mail letter/notice, prior to public hearing, to residents and businesses regarding public
hearing to consider approval of tax roll billing for residential solid waste and recycling
scheduled for June 9, 2011.
• Bring forward the tax roll billing for approval with Burrtec's annual rate increase request
at the June 9, 2011, meeting.
• Submit to the Auditor -Controller's Office, Property Tax Division, by August 10, 2011.
• Finalize preparations on the Commercial Recycle Program and costs in accordance with
AB32 in May/June 2012 for implementation on July 1, 2012.
Fiscal Analysis
There is no fiscal impact associated with this req&VCOUNCtLA�idJK
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