HomeMy WebLinkAboutItem No. 34CITY OF LAKE ELSINORE
REPORT TO THE CITY COUNCIL
TO: Mayor and City Council -
FROM: Ron Molendyk, City Manager
DATE: March 23, 1993
SUBJECT: Resolution Adopting MRF Fees
On June 9, 1992, the City entered into a contract with CR & R Inc.
to collect and dispose of refuse within the City of Lake Elsinore.
The' contract requires CR & R to implement a recycling program
within the City that meets the goals of State Law AS 939. This law
says that 25 percent of all refuse collected within the City must
be diverted from the landfill by 1995, and that 50 percent must be
diverted by the year 2000.
CR & R has already begun a recycling program to divert recyclables
collected from residential dwellings in Lake Elsinore. These
recyclables are separated at the source. However, the goals of AB
939 cannot be met without also separating recyclables from
commercial and industrial waste streams. These waste streams are
co= mingled and recyclables must be separated by mechanical means.
CR,& R has negotiated -a funding program with the City of Perris
which provides for building a 17 million dollar Material Recovery
Facility (MRF). In 1994, the MRF will open and all refuse from
Lake Elsinore and other cities, will be directed to the MRF for
separation. Wastes will be transferred onto the County landfill,
and all recyclables will be marketed. Our costs will be reduced by
the amount of recyclables diverted from the landfill, in accordance
with the percentage of reduced County landfill fees.
The cost of retiring the bonds which fund construction of the MRF
must be shared by all the Cities using the MRF to separate their
refuse. In order to secure the bonds at this time. every city is
sponsoring a resolution to guarantee payment upon opening the MRF:
The rate is equal for all participating cities at this time.
Future participants will be changed a higher rate.-
FISCAL IMPACT -
There is no fiscal impact at this time. The rate increase in July
of 1994 will increase every customer's bill in accordance with the
attached "Addendum to Exhibit C" of the contract. Revenues to the
City will continue to increase by 10.1 percent of the gross
revenues collected.
RECOMMENDATION•
Approve the attached Resolution No. 93 -14 which adds a special fee
increment to the cost of refuse collection to pay for the Material
Recovery Facility.
Prepared By
Approved Fo;
Agenda List,
C"
RESOLUTION NO. 93 -►tA
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LAKE ELSINORE ADOPTING AN ADDENDUM TO
EXHIBIT "C" OF THE AGREEMENT BETWEEN THE
CITY OF LAKE ELSINORE AND CR &R INCORPORATED
FOR THE PURPOSE OF ESTABLISHING RATES TO BE j
CHARGED FOR SERVICES PROVIDED BY THE PERRIS
MATERIAL RECOVERY FACILITY (MRF) ,
WHEREAS, pursuant to Government Code Section 41780 of the
California Integrated Waste Management Act of 1989,. the City of
Lake Elsinore is required to divert 253 of all its solid waste from
landfill or transformation facility by January 1, 1995 through
source reduction, recycling and composting activities; and
WHEREAS, in an effort to reach this statutory goal, the
City Council of the City of Lake Elsinore entered into an agreement
dated June 9, 1992 with CR &R Incorporated, DBA Lake Elsinore
Environmental, for the collection, transportation, recycling,
composting, and disposal of solid waste, recyclables, compostables,
yard waste, construction debris, temporary bins, and roll -off bin
services ( "Franchise Agreement "); and
WHEREAS, the City Council of the City of Lake Elsinore
has determined that, in order to reach the source reduction and
recycling goal of 253 by 1995, it is necessary and desirable to
utilize the services of the Perris Material Recovery Facility
("MRF") when such facility is constructed and operational; and
WHEREAS, Section XVIII of the Franchise Agreement
provides that the schedule of rates to be paid for refuse and
recycling services are set forth in Exhibit "C" of the Franchise
Agreement; and
WHEREAS, the schedule of rates set forth in Exhibit "C"
of the Franchise Agreement does not include rates for the
utilization of Perris MRF Services;
RESOLUTION NO. 93 -
WHEREAS, the City Council "has determined that the rates
set forth in this Ordinance for Perris MRF services are reasonable
and necessary to 'defray the costs of providing such services; and
WHEREAS, the City Council is authorized to prescribe,
revise and collect such rates, by adopting an ordinance approved by
a four- fifths vote of its members, pursuant to Health and Safety
Code Section 5471; and
WHEREAS, the rates set forth in this Ordinance shall be
effective on July 1, 1994 or at the time the Perris MRF is
constructed and operation, whichever is later, and shall be in
addition to the then current rates which are prescribed in Exhibit
"C" of the Franchise Agreement.
NOW, THEREFORE, THE CITY COUNCIL. OF THE CITY OF LAKE
ELSINORE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The following shall constitute an addendum to
Exhibit "C" of the Franchise Agreement dated June 9, 1992 between
the City of Lake Elsinore and CR &R Incorporated, DBA Lake Elsinore
Environmental:
Addendum to Exhibit 11C"
As of July 1, 1994, or at the time the Perris Material
Recovery Facility ( "MRF ") is constructed and operational,
whichever is alter,, the following incremental rates will
be added to the then current rates prescribed in Exhibit
"C" of the Franchise Agreement.
Residential* _
Fully automated single family residential "collection,
recycling, transfer and disposal.
$2.36 per month
RESOLUTION 93
Commercial*
Commercial, industrial and multi - family residential
refuse monthly bin rates (three cubic yard bins) with the
following pickups per week. Services include solid waste
processing at the Perris MRF with a 25$ recovery rate.
1 x week $ 22.75 per month
2 x week $ 45.50 per month
3 x week $ 65.25 per month
4 x week $ 91.00 per month
5 x week $ 113.75 per month
6 x week $ 136.50 per month
'The rates set forth in this addendum reflect only the incremental adjustment necessary to support the new
service fees at the Perris MRF. Landfill and CPI Adjustments will be passed through as delineated in the
existing Franchise Agreement.
SECTION 2. This ordinance is passed by a four - fifths
vote of the members of the City Council of the City of Lake
Elsinore.
ADOPTED this day of ,.1993, by the
following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
GARY M. WASHBURN, MAYOR
CITY OF LAKE ELSINORE
ATTEST:
VICKI KASAD, CITY CLERK
CITY OF LAKE ELSINORE.
APPROVED AS TO FORM AND LEGALITY:
JOHN R. HARPER, CITY ATTORNEY
CITY OF LAKE ELSINORE