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Home My WebLink AboutR 2025-003 RESOLUTION NO. 2025-003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING INTEGRATED SOLID WASTE COLLECTION SERVICE RATES FOR JANUARY 15, 2025, AND EACH JANUARY 1 FROM 2026 THROUGH 2029 AND FINDING THE ACTION EXEMPT FROM CEQA WHEREAS, the City of Arroyo Grande ("City") establishes rates and charges for solid waste, recycling and green waste collection services, pursuant to Public Resources Code Section 40059 (a) and Arroyo Grande Municipal Code §§ 8.32.100 and 8.32.210; and WHEREAS, the City and South County Sanitary Service, Inc. ("SCSS") entered into a Franchise Agreement for collection, diversion and disposal of solid waste, dated November 12, 1997 ("Prior Solid Waste Agreement"); and WHEREAS, the City and SCSS entered into a subsequent amendment, modifying certain provisions of the Prior Solid Waste Agreement, dated March 23, 1999, requiring collection, diversion and disposal of green waste; and WHEREAS, the City and SCSS also entered into a Recycling Services Franchise Agreement, dated August 24, 1999; and WHEREAS, the City and SCSS further entered into an Amended and Restated Solid Waste Collection Franchise Agreement, dated June 10, 2008, which amended and restated the Prior Solid Waste Agreement and incorporated, amended and restated the Prior Recycling Agreement; and WHEREAS, the City and SCSS also entered into a First Amendment to the Amended and Restated Solid Waste Collection Agreement, dated March 22, 2016, which excluded tipping fee increases for landfill improvements, when calculating whether the SCSS rates charged to customers are greater than the cumulative cost of living increase; and WHEREAS, the City and SCSS also entered into a Second Amendment to the Amended and Restated Solid Waste Collection Agreement, dated July 26, 2016, which amended the franchise agreement to extend the contract by 20 years, beginning with the first day of the operation of a new Kompogas organic processing facility; and WHEREAS, SCSS has submitted a rate increase application (the "application") in accordance with the Amended and Restated Solid Waste Collection Franchise Agreement; and WHEREAS, the application has been comprehensively reviewed in accordance with the City's rate-setting policies; and RESOLUTION NO. 2025-003 PAGE 2 WHEREAS, the rate increase request compared with the rate in effect at the date of the agreement exceeds the cumulative cost of living increase from that same date, giving the City the option of terminating the SCSS Franchise Agreement at any time within nine months following approval of the requested rate increase ("the trigger option"); and WHEREAS, based on a detailed review of costs, which concludes costs are reasonable and that rates have been calculated in accordance with the Rate Manual, combined with the fact that rates for Arroyo Grande are among the lowest in the Central Coast area for single family residential services, during this fee increase period only, and in this unique circumstance, the City will not pursue the "trigger" option per Section 8. 3 of the City' s Franchise Agreement with South County Sanitary Services. WHEREAS, notices of the proposed rate increase were sent to property owners and tenants in accordance with the requirements of Proposition 218 and a public hearing was held on January 15, 2025 to consider protests against the proposed rate increase; and WHEREAS, it was determined at the conclusion of the public hearing that a majority protest to the proposed rate increase did not exist; and WHEREAS, the City Council finds establishing rates and charges for solid waste, recycling and green waste collection services are not a project subject to the California Environmental Quality Act ("CEQA") because the action has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. The above recitals are true and correct and incorporated herein by their reference. 2. The application for a rate increase is hereby approved and the integrated solid waste, recycling and green waste collection service rates set forth in Exhibit "A" attached hereto and incorporated herein shall become effective on January 1, 2024, and each January 1 from 2026 through 2029. 3. In addition to the rate adjustments set forth in Exhibit "A", commencing each January 1 of 2026, 2027, 2028 and 2029 solid waste rates will be adjusted based on the following: a. Annual change in the Bureau of Labor Statistics' Consumer Price Index (CPI) for Garbage and Trash Collection in the U.S. all city average, with a minimum 2% adjustment and a maximum 5% adjustment. Amounts below the minimum or above the maximum will carry forward to the following year. b. Calculation of negotiated profit allowance starting in 2026. RESOLUTION NO. 2025-003 PAGE 3 c. Addition of a revenue balancing mechanism starting in 2027, wherein actual revenues from solid waste rates over or under projections carry forward as additions to, or offsets against, the annual CPI adjustment. On motion of Council Member Secrest, seconded by Council Member Guthrie, and by the following roll call vote, to wit: AYES: Council Members Secrest, Guthrie, Loe, Maraviglia, and Mayor Ray Russom NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 14th day of January, 2025. EXHIBIT A RESIDENTIAL SERVICE: SOUTH COUNTY SANITARY SERVICE RATE ADJUSTMENT EFFECTIVE JANUARY 14, 2025 CITY OF ARROYO GRANDE Current Proposed Proposed Pickups Per Monthly Rate Monthly Rate Service Description Week Effective Rate Effective 1/1/2024 Adjustment 1/14/2025 RESIDENTIAL SINGLE FAMILY DWELLING AND MULTI-UNIT (4 UNITS OR LESS): 32 Gallon Waste Wheeler 1 $26.72 1.31 $28.03 64 Gallon Waste Wheeler 1 $34.72 1.71 $36.43 96 Gallon Waste Wheeler 1 $42.75 2.10 $44.85 TWO-64 Gallon Waste Wheelers 1 $50.78 2.50 $53.28 ONE 64 & ONE 96 Gallon 1 $58.83 2.89 $61.72 TWO-96 Gallon Waste Wheelers 1 $66.83 3.29 $70.12 Residential customers must use the waste wheelers provided by the garbage company. This solid service fee for residential trash collections (container with black or gray lid) includes once a week pick-up of one greenwaste/organics container (green lid). and one recycling container (blue lid). MISCELLANEOUS CHARGES -ALL CUSTOMERS: Overstacked Garbage & extra bags Minimum/unit each $7.57 0.37 $7.94 Overstacked Greenwaste & extra bags Minimum/unit , each $3.81 0.19 $4.00 Overstacked Blue Bin & extra bags Minimum/unit each $4.25 0.21 $4.46 In yard service (per can or commodity) IN ADDITION TO STANDARD GARBAGE RATES , per month $37.78 1.86 $39.64 Monthly charge for additional 96- gallon green waste service , per month $10.44 0.51 $10.95 Extended Vacation Service , per month $43.33 2.13 $45.46 Vacant Rate per month $43.33 2.13 $45.46 Waste wheeler cleaning , each time $28.18 1.39 $29.57 Trip charge , each time $45.40 . 2.23 , $47.63 Non-payment downsize service , each time $45.40 2.23 $47.63 Non-payment redeliver waste wheeler each time $45.40 2.23 $47.63 Non-payment reconnect service , each time $45.40 2.23 $47.63 Small item pickup (TV, toilet) , each $44.30 2.18 $46.48 Appliance pickup-residential , each $62.49 3.07 $65.56 Garbage extras on your scheduled pickup day , per yard $15.97 0.79 $16.76 Garbage extras -NOT ON YOUR SCHEDULED PICKUP DAY per yard $42.91 2.11 $45.02 SOUTH COUNTY SANITARY SERVICE RATE ADJUSTMENT EFFECTIVE JANUARY 14, 2025 CITY OF ARROYO GRANDE Current Proposed Proposed Pickups Per Monthly Rate Monthly Rate Service Description Week Effective Rate Effective 1/1/2024 Adjustment 1/14/2025 Re-deliver bin on stopped acct each time $54.15 2.66 $56.81 Stand by time per hour $68.60 3.38 $71.98 Tax Lien Cert. Mail Fee $4.17 0.21 $4.38 City Clean Up $15.50 0.76 $16.26 Extra bin cleaning $84.52 4.16 $88.68 Damage/Destruction of bins or waste wheelers I by quote only Larger than residential appliance or glass, glass doors, or plate glass I by quote only Short Term Dumpsters: Delivery & Pickup-Bin $54.19 2.67 $56.86 Delivery & Pickup-Waste Wheeler $18.90 0.93 $19.83 Rental Per Day $4.02 0.20 $4.22 Empties Per Yard $42.91 2.11 $45.02 Mattress: Twin Each $24.59 1.21 $25.80 Double Each $24.59 1.21 $25.80 Queen Each $24.59 1.21 $25.80 King Each $24.59 1.21 $25.80 ADDITIONAL INFORMATION ALL CUSTOMERS: 1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates 2. Polystyrene(Styrofoam, Plastic#6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container. 3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose. 4. Recycling,Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles(i.e mailboxes,cars,etc) before 6:00am on collection service day. 5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees,which are separately noted on the billings. 6. Late Fees are imposed for residential customers over 30 days delinquent.The fee is 1.5%per month of the outstanding charge,with a minimum fee of$5.00. No prior notice is required,as this late fee policy is stated at the bottom of every bill. 7. Customers can be responsible for fines for contamination. Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate. NON-RESIDENTIAL SERVICE: SOUTH COUNTY SANITARY SERVICE RATE ADJUSTMENT EFFECTIVE JANUARY 1, 2025 CITY OF ARROYO GRANDE Current Proposed Service Description Pickups Per Week Monthly Rate Proposed Rate Monthly Rate Effective Adjustment Effective 1/1/2024 1/1/2025 Mult Family MULTI-FAMILY (5 or MORE) Rates are the same as commercial dumpsters and Waste Wheelers rates (below). COMMERCIAL DUMPSTERS -ALL AREAS: 1 yd dumpster 1 $131.99 . 6.49 $138.48 1 yd dumpster 2 $192.57 . 9.47 $202.04 1 yd dumpster 3 $253.20 12.46 $265.66 1 yd dumpster 4 $324.49 . 15.96 $340.45 1 yd dumpster 5 $381.50 . 18.77 $400.27 1 yd dumpster 6 $452.86 22.28 $475.14 1 yd dumpster 7 $550.43 . 27.08 $577.51 1.5 yd dumpster 1 $149.80 7.37 $157.17 1.5 yd dumpster 2 $231.79 . 11.40 $243.19 1.5 yd dumpster 3 $328.12 . 16.14 $344.26 1.5 yd dumpster 4 $427.90 21.05 $448.95 1.5 yd dumpster 5 $520.67 . 25.62 $546.29 1.5 yd dumpster 6 $588.41 . 28.95 $617.36 1.5 yd dumpster 7 $688.99 33.90 $722.89 2 yd dumpster 1 $167.65 . 8.25 $175.90 2 yd dumpster 2 $281.72 13.86 $295.58 2 yd dumpster 3 $399.42 . 19.65 $419.07 2 yd dumpster 4 $527.75 . 25.97 $553.72 2 yd dumpster 5 $652.58 32.11 $684.69 2 yd dumpster 6 $731.05 . 35.97 $767.02 2 yd dumpster 7 $849.99 . 41.82 $891.81 3 yd dumpster 1 $199.67 . 9.82 $209.49 3 yd dumpster 2 $377.99 . 18.60 $396.59 3 yd dumpster 3 $527.75 25.97 $553.72 3 yd dumpster 4 $688.18 . 33.86 $722.04 3 yd dumpster 5 $816.59 . 40.18 $856.77 3 yd dumpster 6 $973.50 47.90 $1,021.40 3 yd dumpster 7 $1,243.39 . 61.17 $1,304.56 4 yd dumpster 1 $249.64 . 12.28 $261.92 SOUTH COUNTY SANITARY SERVICE RATE ADJUSTMENT EFFECTIVE JANUARY 1, 2025 CITY OF ARROYO GRANDE Current Proposed Service Description Pickups Per Week Monthly Rate Proposed Rate Monthly Rate Effective Adjustment Effective _ 1/1/2024 _ 1/1/2025 4 yd dumpster 2 $442.17 . 21.75 $463.92 4 yd dumpster 3 $634.73 . 31.23 $665.96 4 yd dumpster 4 $816.59 . 40.18 $856.77 4 yd dumpster 5 $1,009.17 . 49.65 $1,058.82 4 yd dumpster 6 $1,198.19 . 58.95 $1,257.14 4 yd dumpster 7 $1,525.91 . 75.07 $1,600.98 6 yd dumpster 1 $374.48 . 18.42 $392.90 6 yd dumpster 2 $663.29 . 32.63 $695.92 6 yd dumpster 3 $952.07 . 46.84 $998.91 6 yd dumpster 4 $1,224.93 . 60.27 $1,285.20 6 yd dumpster 5 $1,513.74 . 74.48 $1,588.22 6 yd dumpster 6 $1,797.30 . 88.43 $1,885.73 6 yd dumpster 7 $2,288.88 . 112.61 $2,401.49 8 yd dumpster 1 $499.27 . 24.56 $523.83 8 yd dumpster 2 $663.37 . 32.64 $696.01 8 yd dumpster 3 $1,269.43 . 62.46 $1,331.89 8 yd dumpster 4 $1,633.22 . 80.35 $1,713.57 8 yd dumpster 5 $2,018.36 . 99.30 $2,117.66 8 yd dumpster 6 $1,797.58 . 88.44 $1,886.02 8 yd dumpster 7 $2,289.25 112.63 $2,401.88 The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning. COMMERCIAL GARBAGE CANS -ALL AREAS: 32 Gallon Waste Wheeler 1 $32.08 1.58 $33.66 32 Gallon Waste Wheeler 2 $67.75 . 3.33 $71.08 32 Gallon Waste Wheeler 3 $58.86 . 2.90 $61.76 32 Gallon Waste Wheeler 4 $74.87 . 3.68 $78.55 64 Gallon Waste Wheeler 1 $67.75 . 3.33 $71.08 64 Gallon Waste Wheeler 2 $90.03 . 4.43 $94.46 64 Gallon Waste Wheeler 7 $269.03 . 13.24 $282.27 96 Gallon Waste Wheeler 1 $78.48 . 3.86 $82.34 96 Gallon Waste Wheeler 2 $131.99 . 6.49 $138.48 96 Gallon Waste Wheeler 3 $166.18 . 8.18 $174.36 96 Gallon Waste Wheeler 4 $200.77 . 9.88 $210.65 96 Gallon Waste Wheeler 5 $226.05 . 11.12 $237.17 96 Gallon Waste Wheeler 7 $308.41 . 15.17 $323.58 SOUTH COUNTY SANITARY SERVICE RATE ADJUSTMENT EFFECTIVE JANUARY 1, 2025 CITY OF ARROYO GRANDE Current Proposed Service Description Pickups Per Week Monthly Rate Proposed Rate Monthly Rate Effective Adjustment Effective 1/1/2024 1/1/2025 COMMERCIAL - OTHER CHARGES: Rates for all commercial customers include recycling or greenwaste/organics pickup once per week, included with the garbage service rate. Customers can choose from a 64 or 96 gallon blue commingled recycle waste wheeler or a 32 or 64 gallon organics waste wheeler included with the garbage service rate (96 gallon waste wheelers can only be used with green waste due to weight). If you need a bin for recycling there is a charge (see below). If you need more frequent recycling, including organics/greenwaste service, it can be provided at a 50% discount from the garbage service rates for the specified level of service required. MISCELLANEOUS CHARGES -ALL CUSTOMERS: Overstacked Garbage & extra bags Minimum/unit each $7.57 0.37 $7.94 • Overstacked Greenwaste & extra bags Minimum/unit each $3.81 0.19 $4.00 • Overstacked Blue Bin & extra bags Minimum/unit each $3.99 0.20 $4.19 Xtra Recycle 32, 64, or 96 waste wheelers per month $1.60 0.08 $1.68 In yard service (per can or commodity) IN ADDITION TO STANDARD GARBAGE RATES per month $18.90 . 0.93 $19.83 Monthly charge for additional 96-gallon green waste service per month $3.91 0.19 $4.10 Waste wheeler cleaning each time $28.18 1.39 $29.57 Trip charge each time $18.90 . 0.93 $19.83 Non-payment downsize service each time $18.90 0.93 $19.83 Non-payment redeliver waste wheeler each time $18.90 0.93 $19.83 Non-payment reconnect service each time $45.40 2.23 $47.63 Small item pickup (TV, toilet) each $44.30 . 2.18 $46.48 Appliance pickup-residential each $62.49 . 3.07 $65.56 Lock Charge $10.52 . 0.52 $11.04 Garbage extras on your scheduled pickup day per yard $15.97 . 0.79 $16.76 Garbage extras -NOT ON YOUR SCHEDULED PICKUP DAY per yard $42.91 . 2.11 $45.02 Commercial Waste Wheeler rent per month $4.39 0.22 $4.61 SOUTH COUNTY SANITARY SERVICE RATE ADJUSTMENT EFFECTIVE JANUARY 1, 2025 CITY OF ARROYO GRANDE Current Proposed Service Description Pickups Per Week Monthly Rate Proposed Rate Monthly Rate Effective Adjustment Effective 1/1/2024 1/1/2025 Re-deliver bin on stopped acct each time $54.15 . 2.66 $56.81 Large Compactor (> 4 yards) per yard $17.41 0.86 $18.27 Small Compactors (4 yards & assume 3 to 1 3 times the garbage below) compaction rate Sunday Service (in additional to garbage service level) per month $94.56 . 4.65 $99.21 Recycle bin rental per month $7.89 . 0.39 $8.28 Stand by time per hour $68.27 . 3.36 $71.63 Extra bin cleaning Each $84.52 4.16 $88.68 Larger than residential appliance _ by quote only _ Damage/Destruction of bins or waste wheelers by quote only Short Term Dumpsters: Delivery & Pickup-Bin $54.19 . 2.67 $56.86 Delivery & Pickup-Waste Wheeler $18.90 0.93 $19.83 Rental Per Day $4.02 0.20 $4.22 Empties Per Yard $42.91 . 2.11 $45.02 Mattress: Twin Each $24.59 . 1.21 $25.80 Double Each $24.59 . 1.21 $25.80 Queen Each $24.59 . 1.21 $25.80 King Each $24.59 . 1.21 $25.80 ADDITIONAL INFORMATION ALL CUSTOMERS: 1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates 2. Polystyrene(Styrofoam, Plastic#6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container. 3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose. 4. Recycling,Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles(i.e mailboxes,cars,etc) before 6:00am on collection service day. 5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees,which are separately noted on the billings. 6. Late Fees are imposed for residential customers over 30 days delinquent.The fee is 1.5%per month of the outstanding charge,with a minimum fee of$5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill. 7. Customers can be responsible for fines for contamination. Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate. RESOLUTION NO. 2025-003 PAGE 10 Ad I ► ► CAREN RAY • SSOM, MAYOR ATTEST: J SICA MATSON, CITY CLERK APPROVED AS TO CONTENT: MATTHEW DOWNING, CITY MANAGER APPROVED AS TO FORM: ISAAC ROSEN, CITY ATTORNEY OFFICIAL CERTIFICATION I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 2025-003 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 14th day of January, 2025. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 16th day of January, 2025. J SICA MATSON, CITY CLERK