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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 L E � 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. S:\Solid Waste Rates\2009 Rate Review\Prop 218 Notice.doc Page 2