ACTIONS RELATED TO THE RECYCLE PLUS RATES FOR SINGLE-FAMILY AND MULTI-FAMILY SERVICES

Similar documents
SAN JOSE CAPITAL OF SILICON VALLEY

$15 Minimum Wage. November 15, 2016 Item 3.4. City of San José

Santa Clara County Hazardous Waste Recycling & Disposal Program. Participation Report - Fiscal Year Los Gatos Milpitas

SANTA CLARA COUNTY CIVIL GRAND JURY REVIEW OF AUDITS AND FINANCIAL REPORTS

Budget Action Yes: No: X Finance Review: ITEM TYPE: CONSENT PUBLIC HEARING EXISTING BUSINESS NEW BUSINESS_ X

SANJOSE CAPITAL OF SILICON VALLEY

Yeah, the new tax bill will not be friendly to homeowners in the Bay Area, and we haven t even added in sales tax paid.

MEDIA RELEASE. Worse than anticipated, says Assessor Larry Stone Assessment Roll Goes Negative: First time since Great Depression

SAN JOSH CAPITAL OP SILICON VALLEY F/ZZ/IL. Memorandum. FROM: Kim Walesh Julia H. Cooper TO: HONORABLE MAYOR AND CITY COUNCIL

1. Accept staff report on the updated study of cost of service to provide potable water to San Jose Municipal Water System (SJMWS) customers; and

SUBJECT: SEE BELOW DATE: April 13, 2017 ANNUAL PAVEMENT MAINTENANCE STATUS REPORT & FUNDING STRATEGY UPDATE.

San Francisco's Experience With Business Tax Reform. Ted Egan, Ph.D. Chief Economist City and County of San Francisco

Santa Clara County Finance Agency City Meeting May 17, 2017 AGENDA

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY CONGESTION MANAGEMENT PROGRAM. June 30, 2008

COUNCIL AGENDA REPORT LONG RANGE CAPITAL FUNDING OPTIONS:

Memorandum \[\<<\\* /7/ TO: HONORABLE MAYOR AND CITY COUNCIL. FROM: Barry Ng Jennifer A. Maguire

SUBJECT: SEE BELOW DATE: October 27, 2016

SAN IPSE CAPITAL OP SILICON VALLEY

SUBJECT: CITY OF SAN JOSE DATE: June 5, TAX AND REVENUE ANTICIPATION NOTE

SAN JOSE CAPITAL OF SILICON VALLEY

201 N. Civic Drive, Suite 230 City of Monte Sereno MEETING AGENDA

City Council Meeting Agenda Report Item #

APPROVAL OF INDUSTRIAL PROJECT COMPLETION AGREEMENT WITH CMK, LLC (DBA BAPC, LLC)

Minimum Wage Regional Recommendation June 9, 2016

JANUARY Lorem ipsum. Water Use Report

Evergreen School District

SAN JOSE CAPITAL OF SILICON VALLEY

Review of Marin Sanitary Service s 2018 Rate Application

REFUSE COLLECTION COST OF SERVICE STUDY CITY COUNCIL MEETING APRIL 25, 2017

Memorandum SAN JOSE CAPITAL OF SILICON VALLEY. FROM: Julia H. Cooper Julie Edmonds-Mares TO: HONORABLE MAYOR AND CITY COUNCIL

Neelima Palacherla, Executive Officer SUBJECT: PROPOSED LAFCO BUDGET FOR FISCAL YEAR 2018

Franchisors of Marin Sanitary Service

CITY OF LOMITA CITY COUNCIL REPORT

1989LITTLE ORCHARD. Industrial Facility. ±158,200 s.f. state-of-the-art FOR SALE OR LEASE OVERVIEW. ±158,200 square feet

APPROVAL OF AGREEMENTS FOR REVENUE ENHANCEMENT SERVICES RELATING TO SALES AND USE TAX, TELEPHONE LINE TAX, UTILITY USERS TAX AND FRANCHISE FEES.

District Business & Advisory Services Judy Lee Kershaw, Director - DBAS: Bulletin:

SAN JOSE CAPITAL OF SILICON VALLEY

6/10/2015 Item #10C Page 1

City Manager's Office

SANTA CLARA COUNTY CIVIL GRAND JURY EXAMINATION OF AUDITS AND FINANCIAL REPORTS

San Jose Water Company

SAN JOSE CAPITAL OF SILICON VALLEY

TO: HONORABLE MAYOR AND. FROM: Toni J. Taber, CM1 SUBJECT: SEE BELOW. DATE: November 5, Approval of Adjusted Campaign Contribution Limits.

DEPARTMENT OF PUBLIC WORKS RECYCLING DIVISION REQUEST FOR PROPOSALS FOR SOLID WASTE CONSULTANT

TRANSIT PLANNING & OPERATIONS COMMITTEE AGENDA

PUBLIC HEARING: AMENDMENT TO THE GENERAL FEE SCHEDULE TO INCREASE REFUSE COLLECTION FEES AND SOLID WASTE FRANCHISE FEE

Memorandum SAN JOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL. FROM: Barry Ng

INFRASTRUCTURE & FRANCHISE

Memorandum. FROM: Julia H. Cooper TO: HONORABLE MAYOR AND CITY COUNCIL. SUBJECT: BANKING SERVICES REP DATE: June 23, 2017 REASON FOR ADDENDUM

(b) Approve a ten percent contingency in the amount of $304,024; and

AGENDA REPORT. Cl Fr1c E or: THE en i c 1 ElH. '. O ~ K l h ~ O. ~~ l l "i: b. Sabrina B. Landreth City Administrator TO:

SANTA CLARA VALLEY WATER DISTRICT TRANSPARENCY COMPLIANCE AUDIT AND BENCHMARKING REVIEW FINAL REPORT. November 2014

City of San Ramon Request for Proposals for Collection and Processing Services Answers to Proposer Questions #2

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

10 cos saio COUNCIL AGENDA REPORT POLICE COST COMPARISON BETWEEN LOS GATOS AND MONTE SERENO,

REPORT ON RFP AND ACTIONS RELATED TO WORKERS' COMPENSATION COMPREHENSIVE SERVICES

REQUEST FOR QUALIFICATIONS. Workforce Innovation & Opportunity Act Curriculum Development & Industry Engagement Services

SUBJECT: SEE BELOW DATE: May 5, 2016

Accept the report on the status of the development of the proposed citywide Softball facility.

Mr./Ms. XXX City Manager Address City, CA XXXXX Subject: Quarterly Disbursement of Measure D Revenues April - June, 2016

BUSINESS TAX MODERNIZATION AND MINIMUM WAGE INCREASE OUTREACH PLAN

Energy Risk Management Policy

SANTA CLARA COUNTY CIVIL GRAND JURY INQUIRY INTO THE MISUSE OF DISTRICT-ISSUED CREDIT CARDS IN THE EAST SIDE UNION HIGH SCHOOL DISTRICT

REQUEST FOR PROPOSAL FOR. Full Cost Allocation Plan and Citywide User Fee Study

ACTIONS RELATED TO BOARD OF FAIR CAMPAIGN AND POLITICAL PRACTICES RECOMMENDATIONS FOR CHANGES TO THE CITY'S GIFT ORDINANCE UNDER TITLE 12.

MEETING SUMMARY JUNE 14, 2018 LEGISLATIVE ACTION COMMITTEE SUMMARY

1898-W Rule No. 15 Main Extensions (Continued) 993-W 1899-W Table of Contents (Continued) 1780-W 1900-W Table of Contents 1897-W

CITIES MUST REIN IN UNSUSTAINABLE EMPLOYEE COSTS

COUNTY OF SANTA CLARA, CALIFORNIA

Fiscal Year. Controller Treasurer Department. Property Tax Highlights

REVIEW OF MARIN SANITARY SERVICE S 2009 RATE APPLICATION HF&H CONSULTANTS, LLC

SAN RAFAEL CITY COUNCIL AGENDA REPORT MARIN SANITARY SERVICE CONTRACT AMENDMENT AND RATES FOR 2019

City of Santa Monica Cost Analysis for Behavior Change Marketing. Single Family Multi Family Commercial

Staff Report City of Manhattan Beach

SBWMA DRAFT REPORT REVIEWING THE 2019 RECOLOGY SAN MATEO COUNTY COMPENSATION APPLICATION

Alameda County Water District Community Meetings Proposed 2019 Rates & Charges

RESOLUTION APPROVING THE SECOND AMENDMENT TO THE COUNTYWIDE NON-DISPOSAL FACILITY ELEMENT OF THE COUNTYWIDE INTEGRATED WASTE MANAGEMENT PLAN

Request for Proposals for Waste Reduction Business Assistance Services

zst FROM: Kip Harkness Kim Walesh Margaret McCahan TO: HONORABLE MAYOR AND CITY COUNCIL SUBJECT: SEE BELOW DATE: April 19,2018 Approved g (_ Date

SAN IPSE CAPITAL OF SILICON VALLEY

I RECOMMENDATIONS: I TO: CITY COUNCIL DATE: April 27,2009 I FROM: CITY MANAGER I BACKGROUND: Agenda Report

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY SAN JOSE, CALIFORNIA

Honorable Mayor and Members of the City Council Phil Kamlarz, City Manager. Fees: Establishing Refuse and Organics Collection Rates

AGENDA BILL. Beaverton City Council Beaverton, Oregon BUDGET IMPACT AMOUNT BUDGETED$

COUNTY OF SANTA CLARA Finance Agency Basic Aid School Districts Meeting November 7, 2018 AGENDA

Sheet No. Title of Sheet Sheet No.

8. Current Residential Water Bills

SUBJECT: BUSINESS TAX MODERNIZATION DATE: July 29, 2016

"':j = Q.. (JQ. Funding Component

SANTA CLARA COUNTY CIVIL GRAND JURY REPORT SHOW ME THE MONEY: SCHOOL PARCEL TAX EXEMPTIONS FOR SENIORS AND HOMEOWNERS WITH DISABILITIES

Commercial Bin/Cart Request - New Customer

SUBJECT: UPDATE ON SAN JOSE CLEAN DATE: March 20, 2017 ENERGY SUPPLEMENTAL

Rate Model Peer Review and Rate Increase Justifications. PRESENTATION TO: City of Redlands

COUNTY OF SANTA CLARA Finance Agency Basic Aid School Districts Meeting November 1, 2013 AGENDA

SAN IPSE CAPITAL OF SILICON VALLEY

Waste Management - Columbia County Operations Rates for Columbia County Residential Services Effective July 1, 2017

Items in this PDF version of the FY 2018 and FY 2019 Proposed Budget can be found using one of the following methods:

201 N. Civic Drive, Suite 230 Robert D. Hilton, CMC

CITY OF SUNNYVALE. Current Issues:

presentation, which occurred on May 19, 2014 as part of the Council' s regular Budget Hearing.

Transcription:

COUNCIL AGENDA: 06/06/17 ITEM: 7.2. CITY OF SAN JOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL Memorandum FROM: Kerrie Romanow SUBJECT: SEE BELOW DATE: Approved Date 1 SUBJECT: ACTIONS RELATED TO THE RECYCLE PLUS RATES FOR SINGLE-FAMILY AND MULTI-FAMILY SERVICES RECOMMENDATION (a) Conduct a Public Hearing on proposed 2017-2018 Recycle Plus rates and proposed maximum possible rate increases for 2018-2019 and 2019-2020. (b) Adopt a resolution to amend the current Recycle Plus rate resolution effective July 1, 2017, as follows: (1) Increase rates for single-family households by 3.5 percent; and (2) Increase rates for multi-family households by 4.5 percent. OUTCOME increases of 3.5 percent for Single-Family Dwelling (SFD) and 4.5 percent for Multi- Family Dwelling (MFD) households would maintain the Recycle Plus Program at cost-recovery, meet contractual obligations, and sustain a prudent fund balance in the Integrated Waste Management (IWM) Fund. BACKGROUND Recycle Plus rates are set to cover the expenses of providing residential solid waste services. Staff regularly reviews IWM Fund revenues and expenditures and forecasts the rates necessary to implement and maintain City Council-approved services, programs, and activities. The recommendations of this memorandum are based on the results of this analysis. As required by Proposition 218, a notice was posted on the City's website and mailed to all property owners on April 21, 2017 that are subject to these rates:

Subject: 2017-2018 Recycle Plus s Page 2 (www, si environment, org/ratenotices). For 2017-2018, the notice specified a rate increase not to exceed 5.0 percent for SFD and MFD collection. The notice also covered possible rate increases of up to 5.0 percent in 2018-2019 and up to 5.0 percent in 2019-2020. Recycle Plus rates for SFDs were last increased in 2015-2016 by 4.0 percent. Since then, the City's payments to the haulers have risen, although the IWM Fund was able to absorb the increase in SFD costs in 2016-2017 without an SFD rate increase. Recycle Plus rates for MFDs were last increased in 2016-2017 by 2.5 percent due to higher contractual expenditures resulting from contractual inflationary increases, growth, and service level increases. ANALYSIS Increasing Contractual Costs Contractual costs for the Recycle Plus collection and disposal agreements comprise approximately 89 percent of total expenditures in the IWM Fund and are expected to increase by approximately $6.2 million in 2017-2018. These agreements provide the following services: garbage, recycling and yard trimming weekly collection (or more frequent for MFDs); MFD and SFD junk pickup services (or large item collection); SFD motor oil and oil filter on-demand collection; periodic collection and recycling of neighborhood waste; and the household hazardous waste drop-off program. The City's agreements with the residential haulers provide for annual inflationary adjustments in compensation to cover increases or decreases in contractual costs. Growth in SFD and MFD housing units also contributes to increased contractual expenditures. The 2017-2018 Proposed Operating Budget includes ongoing funding to expand garbage processing service generated from SFDs in the remaining portion of the City. This service enables further recovery of recyclable materials and compostable organics (such as food scraps and food-soiled paper) prior to landfill disposal. The City has been gradually implementing the service to greater numbers of SFDs across the City since 2014-2015. The final phase of this effort will include the remaining 30 percent of SFDs in the eastern and southern portions of the City, with overall Residential waste diversion estimated to grow from 53 percent, as it was prior to garbage processing, to approximately 84 percent by the end of 2017-2018. Overall, contractual expenditures are expected to increase by 5.54 percent in 2017-2018, and SFD and MFD rates are proposed to increase in order to achieve cost recovery. Proposed 2017 2018 Recycle Plus contractual appropriations are shown in Table 1 on the following page.

Subject: 2017-2018 Recycle Plus s Page 3 TABLE 1 - Recycle Plus Contractual Appropriations (IWM Fund) 16-17 17-18 Appn Contractual Budget Adopted Proposed $ Change % Change 0763 Single-Family Service 53,763,311 55,795,940 2,032,629 3.78% 3318 Single-Family Processing 9,376,279 14,257,241 4,880,962 52.06% 0764 Multi-Family Service & Processing 20,107,292 21,150,399 1,043,107 5.19% 0766 Yard Trimmings Service 23,000,870* 23,444,786* 443,916 1.93% 2059 Landfill Disposal 5,745,353 3,545,353** (2,200,000) (38.29%) Total 111,993,105 118,193,719 6,200,614 5.54% These amounts only include the Recycle Plus rate-payer funded portion of the contract. **This amount includes the recommended change in the Integrated Waste Management Fund Update Manager's Budget Addendum (#19) to reduce $600,000 from the Landfill Disposal appropriation. Strategy and Recommended Increases The Administration maintains an Operations and Maintenance Reserve in the IWM Fund equal to approximately one month's operating expenditures. This reserve, in addition to the Unrestricted Ending Fund Balance, enables the fund to absorb unforeseen costs from year to year and provides a contingency in the event of service disruptions or emergencies. An SFD increase of 3.5% to the 32-gallon garbage cart (used by 90 percent of SFD customers) would result in a monthly increase of $ 1.12, from $32.07 to $33.19. The proposed SFD rates are slightly higher than the current countywide average of $32.55. The proposed MFD rate of $237.99 for a 3-cubic yard bin serviced once per week (one of the most common service levels) remains far lower than the current countywide average rate of $304.29. San Jose's services are robust, including unlimited recycling, unlimited loose in the street yard trimmings collection (with optional cart subscription), on-demand junk pickups, used oil collection, and processing of all waste. This combination of services results in San Jose having one of the highest residential recycling rates in the area. The recommended Resolution includes complete listings of proposed MFD and SFD rates. Information on other jurisdictions' current rates and available proposed rates are presented in the Attachment, "Other Jurisdiction Comparison". Junk pickup is an on-call service available to all SFD and MFD customers. The current Recycle Plus service rates include funding for two junk pickups per SFD household at no additional cost to residents. Junk pickup services are proposed to be expanded to unlimited pickups for SFD customers in 2017-2018. MFD rates already include unlimited junk pickup.

Subject: 2017-2018 Recycle Plus s Page 4 EVALUATION AND FOLLOW-UP Once approved, the Recycle Plus rates will be billed to rate payers for services effective July 1, 2017 for SFD and MFD customers. PUBLIC OUTREACH This memo will be posted on the City's website for the Council Agenda of June 6, 2017. As required by Proposition 218, notices for proposed maximum rate increases for 2017-2018 were mailed to property owners with a 45-day protest period (beginning April 2017). As of May 18, 2017, 28 days into the protest period, the City has received 457 official protests. Thus far, this represents less than 1 percent of San Jose property owners, which is less than the 50 percent needed to reject the proposed rate increases per State of California regulation. The City Clerk counts all protests received as valid; this is the most conservative method for tabulating votes. A final count of official protests will be provided at the City Council meeting on June 6, 2017. The City's Customer Contact Center is also tracking inquiries and responding to resident concerns. COORDINATION This memorandum was coordinated with the City Manager's Budget Office and the City Attorney's Office. COMMISSION RECOMMENDATION/INPUT No commission recommendation or input associated with this action. FISCAL/POLICY ALIGNMENT The additional revenue generated by the recommended rate increases, along with a sufficient fund balance, aligns with City Council Policy that programs be self-supporting whenever possible.

Subject: 2017-2018 Recycle Plus s Page 5 COST SUMMARY/IMPLICATIONS It is estimated the SFD and MFD increases will generate approximately $4.39 million ($3.27 million from SFD and $1.12 from MFD) in additional revenue in the IWM Fund in 2017-2018. This additional revenue has been assumed in the 2017-2018 Proposed Operating Budget (IWM Fund Statement of Source and Use of Funds) and the subsequent Integrated Waste Management Fund Update Manager's Budget Addendum (#19). CEOA Not a Project, File No. PP10-067 (a), Increase or Adjustment to Fees, s & Fares. /s/ KERRIE ROMANOW Director, Environmental Services For questions, please contact Jo Zientek, Deputy Director, Environmental Service Department, at (408) 535-8557. Attachment: Other Jurisdiction Comparison

ATTACHMENT OTHER JURISDICTION RATE COMPARISON Single-family dwelling (SFD) and multi-family dwelling (MFD) garbage and recycling customer rates of Santa Clara County cities are shown in the tables below. Services included with these rates vary from city to city, and San Jose's services are more robust, including unlimited recycling and yard trimmings collection, periodic collection and recycling of neighborhood waste, used oil collection, and backend processing of waste. SFD Garbage and Recycling Program 32-Gallon Comparisons Santa Clara County Cities 16/17 Monthly Proposed 17/18 Adjustment Effective Date Palo Alto $47.69 $50.07 July 1,2017 Sunnyvale $38.23 $39.38 July 1,2017 Los Altos Hills $37.41 N/A A July 1,2017 County District West $35.12 $37.89** July 1,2017 Milpitas $33.89 $35.02 January 1, 2018 Countywide Weighted Average $32.55 N/A A - Los Altos $32.34 N/A A July 1,2017 San Jose $32.07 $33.19 July 1,2017 County District East $31.38 $33.70** July 1,2017 Gilroy $31.00 $31.79 July 1,2017 Morgan Hill 30.17* $30.95 July 1,2017 County District South $30.05 $32.11** July 1,2017 Santa Clara $29.73 $32.17 July 1,2017 Monte Sereno $29.43 $31.12 July 1,2017 Mountain View $29.30 $32.25 July 1,2017 Saratoga $28.13 $29.54 July 1,2017 Campbell $25.80 $27.15 July 1,2017 Los Gatos $25.45 $27.47 July 1, 2017 Cupertino $24.71 N/A A November 1, 2017 San Francisco $35.18 $40.88 July 1, 2017 Oakland $40.68 N/A A N/A * Flat rate for all cart sizes ** is tentative and to be finalized by effective date. A 17/18 s are not available as of date of this memorandum

MFD Garbage and Recycling Program 3-Cubic Yard Bin Comparison San Jose's proposed rate for a 3-cubic yard bin serviced once per week (a common multi-family service level) is $227.74, which is lower than the current countywide average of $304.29 per month (average based on 13 cities in Santa Clara County that offer multi-family bin service). San Jose's multi-family rates also include recycling and yard trimmings collection. These services are not always provided in other jurisdictions, particularly when multi-family service is provided by a commercial collection company. Santa Clara County Cities 16/17 Monthly Proposed 17/18 Monthly Adjustment Effective Date Palo Alto $437.20 No Change 7/1/2017 Sunnyvale $385.03 $396.58 7/1/2017 Los Altos $380.71 N/A* N/A Saratoga $369.83 $387.64 7/1/2017 Morgan Hill $331.88 $340.41 7/1/2017 Mountain View $304.80 $310.90 7/1/2017 Countywide Average $304.29 N/A - Gilroy $299.25 $306.88 7/1/2017 Los Gatos $295.87 $319.54 7/1/2017 Campbell $257.99 $271.21 7/1/2017 Cupertino $242.84 N/A* N/A San Jose $227.74 $237.99 7/1/2017 Santa Clara $220.39 $228.10 7/1/2017 Milpitas $183.60 $189.74 12/1/2017 *17/18 s are not available as of date of this memorandum