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HomeMy WebLinkAbout6.4 ResGarb-RecylAssesmnt .. . . t . " . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 13, 1995 EXHIBITS ATTACHED Public Hearing: 1995/96 Annual Assessment For Residential Basic Garbage/Recycling Sen'ices (prepared by: Paul S. Rankin, Assistant City Manager) 1) ,/ Resolution Adopting 1995/96 Assessment 2) / 1994/95 Budget Change Form SUBJECT RECOMMENDATION : d <tJV 1) Open the Public Hearing. 2) Receive the Staff Report and public testimony. 3) Close the public hearing and deliberate. 4)Adopt Resolution and direct staff to prepare the necessary reports to the Alameda County Tax Collector. 5) Approve the amendment to the 1994/95 Budget. FINANCIAL STATEMENT: An annual assessment is collected on the Property tax bill to cover the cost of Basic Residential Garbage Sen'ice. The proposed 1995/96 annual Assessment is $121.30 per single family household. DESCRIPTION The City has been providing the current mandatory residential garbage and recycling sen'ices since July 1, 1993. The program was initially implemented to recognize the fact that the entire community benefits by assuring that basic garbage and recycling sen'ices are provided to residential units on a weekly basis. The annual cost of the sen'ices is collected on the Property Tax Bill and the City pays the Garbage Company twice each year. Customers who request sen'ices beyond the Basic sen'ice are billed directly by Livermore Dublin Disposal. Each year the City Council must establish an assessment based upon available revenues from prior years and the authorized service rates to be paid to Livermore Dublin Disposal. CHANGES TO RATES / SERVICES PROVIDED The 1995/96 Fiscal year is unique in that the cost of sen'ices are affected by several changes taking place. First, on February 13, 1995, the City Council approved a rate change for all sen'ices provided by Waste Management of Alameda County. As identified at the public hearing the change in rates represented a 19.0% increase for a single can customer. The monthly rate paid to the Company increased from $8.63 per month per household to $10.27 per household. The new rates were effective January 1, 1995 and they provided for collection of one 32 gallon can; four quarterly clean-ups; and curbside recycling. The rate billed to customers with a second can increased from $5.95 per month to $7.68 per month (29.1% increase in the portion billed by the Company.) The annual property tax assessment process results in a delay before many homeowners receive a billing representing changes in rates. As of this date, the single can residential rate payers have not experienced any additional costs as a result of the rate increase effective January 1, 1995. The amount paid as part of their 1994/95 property taxes was approved by the City Council in June of 1994. The 1995/96 Assessment will need to account for the higher rates for the period from July 1, 1995 through December 31, 1995. Due to funds remaining from the prior year as well as fewer delinquencies than anticipated, funds were available in the special Garbage Assessment Fund (#225) to meet the obligations for the residential rate change affecting sen'ices provided between January 1, 1995 and JUDe 30, 1995. Staff has proposed as part of the new Agreement for Waste Sen'ices to make adjustments effective July 1st, in order to allow for the rate adjustment to match the cycle for levying assessments. The second major change is the fact that the City Council has been requested to approve a revised franchise agreement with Waste Management Alameda County - Livermore Dublin Disposal. The proposed effective date of the new agreement is January 1, 1996. Therefore, the 1995/96 Annual Assessment will include six months of sen'ices in accordance with the new rates. The new agreement also addresses new sen'ices to be provided and a reduction in the number of special clean-up days. CITY CLERK ;:-=---6~-_..._........::~~====~:~ I · e e FACTORS AFFECTING THE 1995/96 ANNUAL ASSESSMENT The following Table outlines factors affecting the 1995/96 Assessment: July 1995 H December 1995 January 1996 - June 1996 Garbage CollectionlDisposal (1) 32 gallon Customer Provided (1) 35 gallon Can. Backyard Sen'ice Provided Can /Automated Sen'ice Company Curbside Curbside Recycling Expanded commodities 9/95 Same Separate Green Waste Container None \Vith Weekly Collection 64 Gallon Company Provided Container Special Clean-ups 4 3 In addition to the direct program costs the City must consider other factors which affect the total amount to be collected on the Property Tax. These costs include: a contract computer sen'ice which will prepare the magnetic tapes to be provided to the tax collector prior to August 1, 1995; Alameda County Collection costs which are levied at 1.7% of the total fees levied; estimated delinquencies for properties which are not current on their property tax payments; and an estimate of surplus funds which may be available from collections made in the pF-ior year. 1995/96 PROPOSED ANNUAL ASSESSMENT For the upcoming Fiscal Year Staff is proposing an increase in the annual assessment to $121.30. This represents an increase of 16.3% over the assessment levied for 1994/95. As previously noted the City Council approved a 19.0% increase effective January of 1995. The proposed rate takes into account an estimated Fund Balance at June 30, 1995 of $23,000. The rate also assumes delinquencies will only be 2.5% of the amount levied. In previous years a higher allowance was used and the actual rate has been lower. It should be noted that any prior year collections or penalties collected by the Tax Collector are also allocated to this Fund. Therefore, the rate payers eventually will not bear the full impact of delinquencies. The following are the historical per household assessments levied: 1992/93: $ 110.22 1993/94: $ 104.30 Proposed 1994/95: $ 121.30 The average annual cost for similar sen'ices in 14 surrounding communities is $156.96. Twelve of the agencies in the sUn'ey sample had rates which would exceed the annual cost proposed in the City of Dublin. It should be noted that no attempt has been made in this comparison to account for variations in sen'ices. For example Livermore was one of the rates which is slightly lower, however they only receive green waste collection on a biweekly basis and their recyclables collected do not currently include items which are to be added under the new City of Dublin agreement. The City of Dublin assessment continues to result in a competitive rate compared to costs collected in other communities. 1994/95 BUDGET CHANGE As previously indicated the City Council approved a rate increase in February, affecting the rates paid for the period January 1, 1995 H June 30, 1995. At that time it was indicated that the Garbage Assessment Fund (#225) was anticipated to have an adequate balance to accommodate the rate change. The City Council has not previously adopted a budget change reflecting the increased rates. The original budget was adopted based upon information known prior to the completion of the 1995 Joint Refuse Rate Review Committee Report. Adequate funds are anticipated to be available in the fund balance of the Garbage Assessment Fund and Staff has prepared the necessary Budget Change Form (Exhibit 2). RECOMMEND A TION Attached to the Staff Report is a Resolution (Exhibit 1), which will establish the 1995/96 Assessment. The resolution includes levies for duplex units which are twice the rate for a single family home. Those townhouse units which have individual sen'ice are also charged at the same rate. They will also have access to all new programs including the expanded recycling program and green waste collection. Staff recommends that the City Council conduct a Public Hearing and adopt the Resolution and approve the Budget Change. c:psr/garbageJAGASSMT . . ' e RESOLUTION NO. - 95 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN e -------------------------------------------------------------------------------------------------- APPROVING AND ESTABLISHING THE COLLECTION OF MINIMUM RESIDENTIAL GARBAGE AND RECYCLING SERVICE FEES FOR FISCAL YEAR 1995-1996 WHEREAS, the City of Dublin is mandated by the State of California, under AB 939, to reduce the amount of solid waste going into the landfill; and WHEREAS, through the Mandatory Garbage Ordinance and other means, the City of Dublin is taking a proactive stance to meet the State Mandated Goals; and WHEREAS, the goal of the Mandatory Garbage Ordinance is to protect the health and welfare of the community, to provide recycling services to all residential properties and to equally share the costs of these programs by mandating that every residence contributes toward the cost of the service; and WHEREAS, it is the intent of the City Council to provide solid waste management services as effectively and inexpensively as possible; and WHEREAS, the collection of the charges for these services is best completed by charging every resident for the minimum service on the property tax bill; and WHEREAS, minimum service includes services described in the current Agreement with the franchised waste hauler; and WHEREAS, the City Council has considered this action as part of a noticed public hearing on June 13, 1995; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve and establish the collection of minimum residential service fees by the City on the property tax bill as shown in the attached Exhibit A, attached hereto and by reference made a part thereof. BE IT FURTHER RESOLVED that the City Staff are hereby authorized to undertake all administrative tasks to implement the assessments, including but not limited to an agreement with Alameda County for collection which may provide payment to Alameda County of its reasonable costs of collection not to exceed 1.7% of the total amount levied. PASSED, APPROVED, AND ADOPTED this 13th day of June, 1995. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk EXHIBIT 1 g:agenda\ccres629.doc .< ' e . EXHIBIT A CITY OF DUBLIN CALCULATION OF ASSESSMENT FOR MINIMUM RESIDENTIAL GARBAGE SERVICE Purpose of Fee: The purpose of this fee is to provide for minimum garbage and recycling services to all residences which receive individual garbage service. This includes certain programs and services necessary to comply with the California Integrated Waste Management Act of 1989 (AB939). Provision of the basic service level on a Citywide basis protects the health, safety and welfare of the community. Allocation: The cost of the program and method of allocating the cost among all residential properties offered such services shall be as is set forth herein. Use of Fees: The use of fees collected pursuant to this program shall be used to pay for minimum residential garbage collection and recycling services, and administrative costs associated with the program. Limitations: The amount to be raised through the collection of the Minimum Garbage Service Fee for Fiscal Year 1995-96 does not exceed the estimated total cost of the Services and related expenses as described in the Staff Report presented at the June 13, 1995 Public Hearing before the Dublin City Council. Method To Be Used To Calculate Minimum Garbage Sen'ice Fees For Different Land Uses General: The fee shall only apply to residential properties which receive individual garbage collection and disposal; and are not serviced by centralized commercial dumpsters. The fees assessed for Fiscal Year 1995-96 (July 1, 1995 - June 30, 1996), shall be as follows: Land Use Fee Assessed Each Single Family Residence Each Duplex (2 Units) Each Duplex (5 or More Units) Each CondominiumlTownhouse Unit (Excludes units serviced by centralized dumpsters.) $121.30 $242.60 $1,455.60 $121.30 g: lagendalccresexa.doc . . . CITY OF DUBLIN .. BUDGET CHANGE FO~ . . .. CHANGE FORM # New Appropriations (City Council Approval Required): Budget Transfers: X From Unappropriated Reserves From Budgeted Contingent Reserve (1080-799.000) Within Same Department Activity From New Revenues Between Departments (City Council Approval Required) Other ....'....nEGItt1\!\$~.~nnp:G$T.ACGtH1NIDU..U..U.~U.~U.~.~..~..~AMottNT..~~~~~..m~.~~.~rrr...~~~~~:tNdttEASEambGET.:XddOUNt...~i....~..~:...~rrrr.AM()UNjt.........:..~.. ",'.,' ',",'.',','".",'.'."."'... ...'..,.,'..,',',','.'.'.'....., ............." ,',',',',",".',' .............. ..... "............... ..,,, N',',','.','.'.".' ................. ... .. ............ . . , Name: Name: GARBAGE SERVICE FUND CONTRACT SERVICES-GENERAL Account #: Account #: ?? ~_ ~n?n-7 40 000 $ 45 567.00 Namc: Name: Account #: Account #: Name: Name: Account #: Account #: Name: Name: Account #: - Account #: Name: Name: Account #: Account #: Name: Name: Account #: Account #: REASON FOR BUDGET CHANGE ENTRY: AS PRESENTED TO THE CITY COUNCIL ON JUNE 13, 1995. THIS ADDITIONAL APPROPRIATION WILL ACCOUNT FOR THE ADJUSTMENT TO RATES APPROVED BY THE CITY COUNCIL ON FEBRUARY 13, 1995. ADEQUATE MONIES ARE AVAILABLE TO FINANCE THE INCREASED COSTS. City Manager: Date: Signature ... ......:.~...:..~.~.~..:.........~:........:......................~........:.....:.~.............................~...;....::..(....::.:.::.:......:......A~..{\.ppi9y~4~(ili~...gHY.g.9.HB9gM~.~;iQg..9Q:.:])at~.:......~ ~..~..~.6;'i~ ;.95........'. .. Mayor: Date: Signature Posted By: Date: Signature [)(hA~~i ~ fomr.,lbl'dgehng