(3)AR 061708 Solid Waste Rates - Laserfiche WebLink

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ITEM #3 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JUNE 17, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: MARITZA TAPIA; INTERIM PUBLIC WORKS DIRECTOR SUBJECT: APPROVE RESOLUTION ESTABLISHING THE FISCAL YEAR 2008/2009 MUNICIPAL SOLID WASTE RATES. DATE: JUNE 11, 2008 BACKGROUND: Prior to fiscal year 1996 residential municipal solid waste collection and disposal services, as well as `light' commercial solid waste collection and disposal services were provided by the Refuse division of the Public Works Department. As of July 1996, the City of Colton chose to contract these services out because this choice provided residents a lower rate of $15.96 compared to the rate of $18.40 that was being charged to residents at the end of fiscal year 1995/1996. Taormina Industries, LLC now known as Republic Industries of Southern California, LLC, was the contractor that was able to provide residents with the lower rate of $15.96. The initial agreement with Republic Industries of Southern California was amended in 1999 and 2005 but retains the initial Rate Adjustment Clause which stipulates that rates are determined as a result of two variables: 1) the Tipping Fee Component and 2) the Service Fee Component. The Tipping Fee Component varies as a result of changes in the costs of the tipping fee, the charge of disposing of the collected refuse, which is charged to the hauler by the agreed upon disposal or composting facilities. Increases experienced by the Service Fee Component will result due to an increase in the Consumer Price Index (CPI) in the Orange, Los Angeles and Riverside County Index Prices — this is to account for increases that Republic Industries may incur as a result of increases in labor, equipment and insurance thus increasing their internal costs to providing the contracted service. DISCUSSION/ANALYSIS: On April 15, 2008, Council action set the public hearing date for the proposed fiscal year 2008/2009 solid waste rates as June 17, 2008 at 6:00 p.m. Notification of the 2008/2009 rate changes were mailed to all recorded property owners of each identified parcel upon which the fees are to be imposed by forty five days prior to the public hearing. In addition, notice was published in the Colton City News on June 5, 2008 advertising the said date and time of the public hearing.