HomeMy WebLinkAbout12 - BA-030 - Residential Refuse Collection Services in the Newport Coast AreaCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 12
January 14, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
David E. Niederhaus, Director, 949 - 644 -3055
SUBJECT: Budget Amendment to Appropriate Additional Funds for Residential
Refuse Collection Services In the Newport Coast Area
ISSUE:
Should the City authorize a budget amendment to appropriate additional funds in the
amount of $93,600 to cover the cost of residential refuse collection services in the
Newport Coast area?
RECOMMENDATION:
Approve the budget amendment to appropriate additional funds in the amount of
$93,600 for Account 3150 -8080 to provide for the additional cost of residential refuse
collection services in the Newport Coast area.
DISCUSSION:
Background:
The City of Newport Beach annexed the Newport Coast area effective January 1, 2002.
As part of the annexation agreement, the City agreed to pay for single family residential
refuse collection services in the Newport Coast area. Waste Management, the
franchised hauler for the Newport Coast area, provides automated refuse and recycling
collection services and currently charges the City $13.03 per residence, and $3.42 for
an additional optional trash cart, for those residents who request them. A portion of the
rate is subject to an annual CPI adjustment.
When the annexation occurred in January 2002, there were 2,307 residences serviced
by Waste Management. As of November 2002, this amount has increased to 2,532
residences with 190 additional trash carts being provided to Newport Coast residents.
Budget Amendment
January 14, 2003
Page 2
Staff originally estimated that the Waste Management contract for the Newport Coast
area would cost approximately $30,000 a month. The following shows the allocation of
money for the Waste Management contract for the Newport Coast area:
Budgeted amount for FY 02 -03:
$360,000
Actual Payments July- November:
$180,949
Balance Budgeted Funds (12/1/02):
$179,051
Estimated costs for December -June: $272,580
Total Estimated Cost
of Contract for FY 02 -03: $453,529*
Budget Deficiency: $ 93,529
* The estimate for January through June 2003 has been adjusted to reflect a contractual
CPI increase of 2.57% ($4,854) and is included in the above estimated costs.
Staff brought this probable budget deficiency to the attention of the Administrative
Services Director during the latter stages of the budget approval process. It was
determined that a budget amendment should be prepared for any increase in costs, but
not until mid -way through FY 02 -03 to ensure that a proper forecast of projected
expenditures could be made.
Funding Availability:
These funds are not available in the current budget.
Prepared by: Jeremy Hammond
SIGNATURE
Jere Hammond,
Management Assistant
Submitted by: David E. Niederhaus
SIGNATURE
David E. Niederhaus,
Director
Attachments: (A) City Payment History to Waste Management for Newport Coast
(B) Budget Amendment
Month Residential Homeowners Additional Invoice Amt
Assoc. Carts
January-02
2307
245
138
$33,724.52
February-02
2307
245
138
$33,724.52
March -02
2364
245
145
$34,491.17
April -02
2392
245
157
$34,89705
May -02
2417
245
160
$35,233.06
June -02
2435
245
162
$35,474.44
July -02
2450
245
167
$35,686.99
August -02
2463
245
171
$35,870.06
Spetember02
2485
245
180
$36,187.50
October -02
2498
245
184
$36,370.57
November -02
2532
245
190
$36,834.11
December -02
2557
245
198
$37,187.22
Estimates'
January-03"
2582
245
206
$38,331.89
Estimates'
February-03"
2607
245
214
$38,692.00
Estimates'
March -03"
2632
245
222
$39,052.11
Estimates'
April -03"
2657
245
230
$39,412.22
Estimates'
May -03"
2682
245
238
$39,772.33
Estimates'
June -03"
2707
245
246
$40,132.44
Estimates'
FY 02 -03 $453,529.44
. These figures include a monthly increase of 25 single family residences
and 8 additional trash carts per month.
" The rates as of January 2003 include a 2.57% CPI adjustment on the base
service portion of the rate
City of Newport Beach
BUDGET AMENDMENT
2002 -03
EFFECT ON
BUDGETARY FUND BALANCE:
Account
Number
Increase Revenue Estimates
X
Account
Increase Expenditure Appropriations
Division
Number
Transfer Budget Appropriations
SOURCE:
Division
Number
Account
from existing budget appropriations
PX
Number
from additional estimated revenues
Number
from unappropriated fund balance
EXPLANATION:
NO. BA- 030
AMOUNT: $93,60000
Increase in Budgetary Fund Balance
AND X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations for Newport Coast residential refuse collection services.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account
010 3605
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:
Signed
Administrative
FA
Description
General Fund Fund Balance
Description
Description
3050 General Services - Refuse
8080 Services - Professional & Technical
Administrative Services Director
Manager
Amount
Debit Credit
$93,600.00
$93,600.00
i.2 -ac -6;>
Date
�.3
Date
Signed:
City Council Approval: City Clerk Date