HomeMy WebLinkAboutReso - CC - 020-2009RESOLUTION NO. 20-2009
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BURLINGAME APPROVING AND
AUTHORIZING ALLIED WASTE SERVICES TO
INCREASE RATES FOR REFUSE COLLECTION
AND RECYCLING SERVICES AND DETERMINING
THAT NO MAJORITY PROTEST HAS BEEN MADE
WHEREAS, Allied Waste Services (Allied, herein) holds a franchise from the City of
Burlingame to collect and dispose of refuse and various recyclable materials within the City; and
WHEREAS, the City of Burlingame is a member of South Bayside Waste Management
Authority (SBWMA) and the members of SBWMA have a uniform franchise agreement with
Allied; and,
WHEREAS, HFH Consultants, experts in the field of analyzing the costs of solid waste
and recyclables collection, processing and disposal, has prepared a detailed report which explains
Allied's increased operating costs and which confirms the rationale of said proposed increases; and
WHEREAS, pursuant to Allied's franchise agreement and Burlingame Municipal Code
section 8.16.040(b), Allied has submitted to City a proposed rate schedule for the provision of
collection and recycling services with the City of Burlingame; and
WHEREAS, the proposed rate schedule is intended to comply with the funding and
revenue requirements of the franchise agreement; and
WHEREAS, the proposed rate increases appear just, reasonable and necessary for Allied's
continued provision of its services pursuant to the terms of the franchise agreement; and
WHEREAS, on January 29, 2009, pursuant to state law, notice was mailed to all rate
payers and said notice included the reasons for the rate increase, the amounts of the rate increase,
the time and place of the public hearing regarding the rate increase and the rate increase protest
procedure; and
WHEREAS, the City Council has received and considered all written protests, testimony,
objections and other evidence regarding the proposed rate increases; and,
WHEREAS, no written majority protest was made to the proposed rate increase at the time
the public hearing was concluded:
NOW, THEREFORE, the City Council of the City of Burlingame
Resolves as follows:
1. The City Council finds that all of the above recited facts and those stated in the staff
report are true and correct.
2. The City Council further finds that Allied's proposed rate increases for waste collection
and recycling services are just and reasonable pursuant to the franchise agreement, the City's
Municipal Code, the HFH Consultants' report and all of the facts contained in the staff report.
3. The City Council further finds that no written majority protest to the proposed rate
increases has been made under the provisions of State law.
4. The City Council hereby approves and authorizes Allied Waste Services, the City's
franchisee for solid waste and recycling services, to increase their rates as follows:
a) Commercial bin and can rates are increased by 8%;
b) Commercial compactor rates are increased by 8%;
C) Residential rates are increased by 8%.
The detailed amounts of these increases are approved and authorized by the City Council and are
contained in the proposed rate increase sheet which is available for review during regular business
hours in the Office of the City Clerk.
5. These rate increases shall be effective April 1, 2009.
I, Mary Ellen Kearney, City Clerk of the City of Burlingame, hereby certify that the
foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the
Burlingame City Council held on the 160' day of March, 2009, by the following vote to wit:
AYES: Councilmembers BAYLOCK, KEIGMUN, NAGEL, O'MAHONY
NOES: Councilmembers: NONE
ABSENT: Councilmembers: DEAL
Atlq,6—
Mary
Ellen Kearney, City Clerk
CITY
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The City of Burlingame
City Hall — 501 Primrose Road
Burlingame, CA 94010-3997
NOTICE OF PUBLIC HEARING TO CONSIDER AN INCREASE IN
SOLID WASTE AND RECYCLING RATES AND TO CONSIDER
ANY PROTESTS TO INCREASED RATES
The City Council of the City of Burlingame hereby gives notice of its intent to review and consider
approval of increases to the existing residential and commercial rates charged by the City's solid waste
franchisee, Allied Waste Industries, for the collection of solid waste and recyclable materials within the
City of Burlingame. The City Council plans to review and consider this rate increase at a public hearing
scheduled for Monday, March 16, 2009 at 7:00 p.m. at the Burlingame City Hall.
The need for this increase has been comprehensively discussed by the South Bayside Waste Management
Authority (SBWMA) Board of Directors based on the final report entitled, Review of Allied Waste
Industries' Refuse, Recyclable, and Plant Materials Collection Rate Application for 2009 (prepared by
HF&H Consultants, LLC). The City of Burlingame is a member of the SBWMA and along with the other
11 public agencies has a uniform franchise agreement with Allied Waste Industries. A copy of the Report
is available for public inspection at the Office of the City Clerk, City Hall, 501 Primrose Road,
Burlingame, during regular business hours, 8:00 am to 5:00 pm, Monday through Friday.
NEW RATES
The intended new rates would increase up to a maximum of 8% effective April 1, 2009. The following
table provides the increase for the most common residential and commercial rates.
All other rates will be increased 8% uniformly. A detailed rate sheet showing all 2009 proposed rates is
also available for review in the Office of the City Clerk.
S:\Solid Waste Rates\2009 Rate Review\Prop 218 Notice.doc Page 1
City of Burlingame, CA
Monthly Solid Waste Rates for
2009
(Rates do not include equipment rental charges)
Customer
2008 Rate 2009 Rate
Increase
Increase
Service Level
Current Proposed
Amount
Percentage
Residential:
32 gallon can
$14.24 $15.38
$1.14
8%
64 gallon can
$28.49 $30.77
$2.28
8%
95 gallon can
$42.28 $45.67
$3.39
8%
Commercial:
95 gallon can
$42.28 $45.67
$3.39
8%
1 yard bin, 1 x per wk
$89.90 $97.10
$7.20
8%
3 yard bin, 1x per wk
$269.69 $291.27
$21.58
8%
All other rates will be increased 8% uniformly. A detailed rate sheet showing all 2009 proposed rates is
also available for review in the Office of the City Clerk.
S:\Solid Waste Rates\2009 Rate Review\Prop 218 Notice.doc Page 1
NECESSITY FOR THE NEW RATES
The new rates are necessary based on the terms of the existing franchise agreement between the City of
Burlingame and Allied Waste Industries, which provide that rates be set to cover costs and give the solid
waste contractor a rate of return based on an approved cost proposal. As detailed in the HF&H report, the
increase in contractor's costs will have a rate impact of +3.3%.
In addition, on January 22, 2009, the SBWMA Board of Directors approved a 14.3% increase in the
tipping fees it charges its members for use of the Shoreway waste transfer and recycling facility. The
initial recommended tipping fee increase was 9.5%. However a precipitous drop in recycling commodity
prices has resulted in a decrease in recycling revenue received by the SBWMA, necessitating a larger than
expected increase. Increases in tipping fees are required to be passed -through in the rates charged to solid
waste customers under the provisions of SBWMA joint powers agreement. The solid waste rate impact
of the 14.3% increase in tipping fees is +3.7%.
Finally, an increase is necessary to enable the City of Burlingame to recover its costs of administering the
city's solid waste franchise and SBWMA joint powers agreement in addition to providing ancillary
recycling services and programs to solid waste customers. The solid waste rate impact is +1.0%.
PUBLIC HEARING NOTICE
The City Council of the City of Burlingame hereby gives notice of a public hearing to be held at its
meeting of Monday, March 16, 2009, at 7:00 p.m. at the Burlingame City Hall, 501 Primrose Road,
Burlingame, CA. At this hearing, the City Council will consider public comment as well as written
protests by ratepayers against the proposed increase in solid waste/recycling fees. If written protests are
presented by a majority of the affected ratepayers prior to the close of the public hearing, the City Council
will not increase the rates as a matter of State law.
If you would like additional information on the proposed rates, please call the Burlingame Finance
Department at 650-558-7222 or visit our website at www.burlinilame.org
FILING A PROTEST
If you wish to file a written protest, please send a letter in a sealed envelope addressed to Solid Waste
Rates, City Clerk, City of Burlingame, 501 Primrose Road, Burlingame, CA 94010. Your letter must
identify the real property you own or rent by street address and assessor's parcel number. Your letter
must be legibly signed by any one of the current property owners or ratepayers of record.
The City of Burlingame must receive your letter at City Hall by 5:00 p.m. on Monday, March 16, 2009,
or it must be presented at the City Council meeting of March 16, 2009 prior to the close of the public
hearing on the matter.
Any person interested, including all solid waste/recycling collection customers of the City of Burlingame,
may appear at the public hearing and be heard on any matter related to the proposed increase in rates.
For mailing distribution on January 29, 2009 by Allied Waste Industries on behalf of the City of
Burlingame.
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