HomeMy WebLinkAbout14 - Approval of 2020 Residential Recycling Fee Study and Setting of Public Hearing for Residential Recycling Service Fee Rates - PowerPointReview of Residential
Recycling Fee
January 26, 2021
Item No. 14
JANUARY 26, 2021
AGENDA ITEM N0. 14
Recycling Service Fee
In 1990 Ordinance No. 90-6 established a
Recycling Service Fee to recover
operational costs incurred by the City
Current Recycling Service Fee:
$3 per residential unit per month
Currently generates $970,000 in annual
revenue to help offset program cost
Newport Coast currently not charged Fee
Fee last updated in 2009
Recycling Service Fee Update
Operating costs have increased over time
Currently, City's General Fund is bearing the
increased program costs
The current per month fee is not uniformly
applied to Newport Coast
State Laws continue to increase the amount of material being
recycled, thus resulting in increased program costs
The City Council Refuse Working Group has reviewed and
supports staff's recommendation to update City Recycle Fee
2020 Residential Recycling Fee Study
Fee study calculation based on operational costs of the collection
of recyclable materials. These costs include:
Annual Residential Contract Costs:
Note -Newport Coast and City currently have two separate
residential refuse collection contracts resulting in two separate
calculations and Recycling Service fees.
Diversion rate for recyclable material processing
Number of households subject to the fee
Staff time related to contract management and program
administration.
2020 Residential Recycling Fee Study
ANNUAL STAFF EXPENSE
Senior Management Analyst PW - Refuse $147.95 120.00
Code Enf Officer Trainee PW - Envtal Liability $45.41 240.00
Total annual cast for staff time: $2$,651.50
ANNUAL RECYCLING CONTRACT COSTS
Excluding Newport Coast 4,150,588 48.3696 2,012,108.72
Newport Coast 741,164 40.65%, M1,283.17,
Total annual recycling contract costs:
Grand total annual costs for Residential Recycling program
NUMBER OF RESIDENTIAL UNITS
Excluding Newport Coast
Newport Coast
$2,313,391.88
$2,342,043.48
27,017
4,335
Total residential units: 31,3$2
Proposed Rate Increase
The City: (Excludes Newport Coast)
The current fee for the City area is $3.00 per residential unit per
month
The
proposed
fee for the
City
area (excluding Newport Coast) would
be
$6.28 per
residential
unit
per month.
Newport Coast:
Recycling Services fee was not included as part of annexation
The proposed Recycling Service fee for residential units in Newport
Coast would be $5.86 per residential unit per month.
*Both fees will include future annual CPI increases
Map of Residential Hauling Contracts
Recycling Fee Information
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City of Newport Beath residertitial
.refuse and recycling services provided
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+. Newport Gast Residential Refuse Colkectior
ort Coast refuse and renyclFng service
provided by CR&R.
Current Fee $ a
Proposed l=ee - 5-5,&6
Newpcet Coast Residential Refuse
Santa Ana Heights
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City of Newport Beach �
Proposed Rate Increase
If approved, the proposed fee increase would result in a total
estimated revenue of $2,331,.000 annually, which represents a
$1,361,000 increase in revenue, covering the current recycling
program cost.
A:
Recycling Fee Increase Process
Steps for approval of fee increase per Proposition 218:
City Council review and approval of Residential Recycling Fee Study
Set a date for the tabulation of protests votes and conduct a public
hearing on proposed Recycling Service Fee rates pending the result
of the protest vote.
Send a notice discussing the proposed Recycling Service Fee rates
increase and the public hearing date to all effected residential
property owners; and
Collect and tabulate all protest votes and conduct a public hearing
on proposed Recycling Service Fee rates. If a majority of protest
votes are received, fee increase cannot be approved
If approved, rate adjustments would be effective April 2021
Recommendations
NEWPORT BEACH
RECYCLES
Approve the 2020 Residential Recycling Fee Study
Direct staff to send a notice of proposed Recycling Service Fee
rates and public hearing date for consideration to all effected
residential property owners
Set the date of March 23, 2021 for the tabulation of protests
votes and conduct a public hearing of proposed Recycling
Service Fee rates pending the result of the protest vote
Questions
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