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Home My WebLink About97-77 - Establishing a fee Pertaining to Implementation of City Source Reduction & Recycling ElementRESOLUTION NO. 97-7 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ESTABLISHING A FEE PERTAINING TO THE IMPLEMENTATION OF THE CITY OF COSTA MESA SOURCE REDUCTION AND RECYCLING ELEMENT. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: 1. WHEREAS, California Public Resources Code Sections 41901 and 41902 enables cities to charge fees for solid waste services provided that the fees do not exceed the reasonable cost of providing those services; and 2. WHEREAS, the City Council adopted an ordinance regulating solid waste enterprises; and 3. WHEREAS, the City accepted a fee study establishing the costs of implementing the Costa Mesa Source Reduction and Recycling Element ("SRRE") pursuant to California Public Resources Code Sections 41901 and 41902, and adopted a resolution imposing a charge of one dollar ($1.00) per ton upon all solid waste haulers to implement the SRRE based on the study attached as Exhibit "A" to the resolution which is incorporated herein; and 4. WHEREAS, pursuant to Government Code Sections 66001 and 66006, the City Council must annually review the SRRE fee and conduct a new fee study and make the required findings if the SRRE fee is to be increased; and 5. WHEREAS, the City Council has evaluated justification for establishment of the fee given economic and social factors, as well as average fees charged by surrounding cities; and 6. WHEREAS, the purpose of this resolution is to comply with the annual review responsibilities for the SRRE fee and requirements for an increase of the SRRE fee under California Government Code; and 7. WHEREAS, the secondary purpose of this resolution is to reestablish a SRRE fee program to enable the City of Costa Mesa to comply with AB 939 (Public Resources Code Sections 40000 et seq.); and 8. WHEREAS, the SRRE fee is necessary to implement the SRRE program mandated by AB 939 (Public Resources Code Sections 40000 et seq.) to reduce solid waste generated in the City of Costa Mesa and recycle such solid waste to enable the City of Costa Mesa to comply with the source reduction and recycling and composting standards set by such code; and 9. WHEREAS, the Public Services Department conducted a SRRE Fee Study in August, 1995, establishing the costs of implementation of the SRRE attributed to commercial, industrial, and multi -family residential uses and is attached as Exhibit "A" and incorporated herein; and 10. WHEREAS, the Public Services Department conducted an audit of accounts of the SRRE fee program and the audit is attached as Exhibit "B"; and 11. WHEREAS, the SRRE study and audit were available for public inspection and review fourteen (14) days prior to this public hearing; and 12. WHEREAS, pursuant to Government Code Sections 66001, 66002, 66006, 66016, and 66018, notice was mailed to all interested parties on record fourteen (14) days prior to this public hearing; and 13. WHEREAS, the City Council conducted a public hearing on August 18, 1997, received testimony and evidence from the permitted solid waste haulers and solid waste customers in the City of Costa Mesa and evaluated justification for establishment of the fee given economic and social factors, as well as average fees charged by surrounding cities; and 14. WHEREAS, the City Council, based on the SRRE Fee Study, public testimony, opinions of its Public Services Department, and other evidence received at the public hearing on August 18, 1997, hereby makes additional findings: A. The purpose of the fee is to fund the costs to implement the SRRE in the City of Costa Mesa. B. There is a reasonable relationship between the SRRE fee's use and the solid waste haulers and customers' generation of solid waste which the fee is imposed because the fees are necessary to monitor, document, and regulate the amount of solid waste generated in the City of Costa Mesa to establish compliance with the SRRE mandated by Public Resources Code Sections 40000 et seq. C. There is a reasonable relationship between the need for SRRE implementation services and the solid waste generated by commercial, industrial, and multi -family residential uses upon which the fee is imposed because customers paying the fee will receive a direct benefit from the reduction in need for solid waste and recycling facilities as found by the California Legislature in Public Resources Code Sections 40000 et seq. D. There does not exist any portion of the SRRE fee imposed under prior resolutions remaining unexpended or uncommitted in the City of Costa Mesa accounts five or more years after the deposit of the fee, and no refunds of the fee are required. The audit by the Public Services Department set forth in Exhibit "B" accurately reflects the balance of the SRRE fee account on the fees collected, interest, and other income and amount of expenditure and refunds of the SRRE fee by the City of Costa Mesa during the fiscal year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa that: 1. A charge of one dollar ($1.00) per ton shall be instituted upon all solid waste haulers' customers and administered to comply with all of the requirements pursuant to Ordinance No. 92-31 but no sooner than sixty (60) days after the adoption of this resolution pursuant to Government Code Sections 66016 and 66018. 2. Once the fee is deposited with the Finance Department of the City of Costa Mesa, the fee shall be deposited in an account separate from the General Fund with interest thereon deposited back to such account. Records of the deposits, interest, expenditures, and refunds of the fees in the account shall be maintained by the Finance Department pursuant to Government Code Sections 66001 and 66006. The fee shall be used only for those SRRE implementation programs and services identified in the Fee Study attached as Exhibit "A". The fee shall be subject to review by the Director of Public Services every twelve (12) months to determine that the fee does not exceed the cost of SRRE implementation. Should the fee require adjustment, the Director shall set the fee for public hearing and adjustment by the City Council as required by Government Code Section 66016. Once each fiscal year, the City Council shall make findings with respect to any portion of the fee remaining unexpended or uncommitted in its account five or more years after deposit of the fee as required by Government Code Section 66001. PASSED AND ADOPTED this 18th day of August, 1997. ATTEST: Deputy City Jerk of the City of Costa Mesa Ma*ox—of toe City of Costa Mesa -rA "1, 9ot0 _ Tr'v►7 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) APPROVED AS TO FORM I(4 dk' x-6.97 CITY ATTORNEY I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Resolution No. 97- 177 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the 18th day of August, 1997. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 19th day of August, 1997. Deputy Cit Clerk and ex -officio Clerk of the City C ncil of the City of Costa Mesa EXHIBIT A FEE STUDY FOR IMPLEMENTATION OF COSTA MESA SOURCE REDUCTION AND RECYCLING ELEMENT This study establishes the basis for the imposition of a new user fee pursuant to California Government Code ("G.C.") § 66016 and California Public Resources Code ("PRC") § § 41900, 41901 and 41902. The fee shall be used solely to reimburse the City of Costa Mesa for the costs directly attributed to the implementation of the Costa Mesa Source Reduction and Recycling Element ("SRRE") as required by PRC § 41901. The fee does not exceed the reasonable estimated cost for such implementation services on an annual basis as required by G.C. § 66016. The fee shall be the sum of $1.00 per ton of solid waste deposited by the customers for collection by solid waste haulers under permit with the City of Costa Mesa pursuant to Costa Mesa Municipal Code ("CMMC") § § 8-76 through 8-84, inclusive. The solid waste haulers shall collect the fee on a monthly basis from the customer based on the average monthly tonnage of solid waste collected from the customer within the City of Costa Mesa ("City"). The fee is based on the following reasonable estimate of costs for the implementation of the SRRE: 1. Annual cost of implementation: $129,800 2. Annual tonnage collected in City: $122,600 Price per ton: $1.00 The documentation establishing the cost is attached as Exhibit 1 and incorporated herein. The documentation establishing the tonnages are based on quarterly reports submitted by permitted solid waste haulers and the SRRE. The tonnage in the SRRE is based on a survey conducted in the City of Costa Mesa. The manner in which the fee is to be imposed is reasonably related to the need for the services and benefits received by the customers and the cost of the implementation of the SRRE. The monitoring and reporting services paid for by the fee implements the SRRE to provide reasonably accurate reports to the State of California pursuant to PRC § 40000 et seq. The reports will establish that the City is in compliance with the source reduction, recycling, and composting requirements of PRC § 40000 et seq. The customers will receive a benefit due to source reduction, recycling, and composting as stated in findings in PRC § 40000 et seq. The utilization of a fee based on tonnage is an equitable method of allocating the cost of the services provided and benefits received. The average monthly tonnage by customer is a method accepted by the State of California pursuant to PRC § 40061(a). Tonnage for a customer's unit shall be based on the average number of standard -size containers collected each month. The solid waste hauler shall use a container with a designated weight per container for which an average monthly tonnage may be calculated. Where several customers' units use one container, the weight per container shall be prorated. to each customer by the solid waste hauler to calculate the average monthly tonnage per customer's unit. A unit shall mean the residential dwelling unit, multi -family dwelling unit, commercial unit or industrial unit as defined in CMMC § 8-76. The hauler shall collect the fee from its customers on behalf of the City. The fee shall be the property of the City and shall be held by the hauler in trust for the City when collected by the hauler. The fees collected by the hauler on behalf of the City shall be collected at the same time as it collects the cost for solid waste handling services and the fees collected shall be deposited with and received by the Finance Department on or before the 15' day after the end of the calendar quarter, or of such other reporting period as may be established by the Finance Department, after the collection of such fee from the industrial, commercial, multi -family residential units or residential units covered by the permit held by the hauler. Written reports on the collection of the fee shall also be submitted at the time the fees are deposited with the City and reports shall be on a form specified by the Finance Department. Failure to collect, deposit, and report the fees specified herein shall constitute a theft by the hauler and subject him or her to criminal charges and/or civil penalties as determined and approved by City Council pursuant to PRC § 41954. Once the fee is deposited with the City, the fee shall be deposited in an account separate from the general fund with interest thereon deposited back to such account. Records of the deposits, interest, expenditures and refunds of the fees in the account shall be maintained pursuant to G.C. § § 66001 and 66006. The fee shall be subject to review by the Director of Public Services every twelve (12) months to determine that the fee does not exceed the cost of implementing the SRRE. Should the fee require adjustment, the Director shall set the fee for public hearing and adjustment by City Council as required by G.C. § 66016. EXHIBIT 1 CITY OF COSTA MESA PROGRAM BUDGET 1997-98 SOURCE REDUCTION AND RECYCLING ELEMENT Expenditures: Salaries and Benefits $43,350 Maintenance and Operations $7,640 Professional Services $83,450 Total Expenditures $134,440 Less Consultant Fees to be Funded by State Grant Sources $4,640 TOTAL SOURCE REDUCTION AND RECYCLING PROGRAM COSTS $129,800 EXHIBIT B CITY OF COSTA MESA SOURCE REDUCTION AND RECYCLING ACCOUNT Fund Balance as of July 1, 1997 REVENUES: Permit Fees $480 x 12 Haulers $5,760 SRRP $1.00/Ton Fee $121,640 TOTAL REVENUES $127,400 EXPENDITURES: Staff Salaries $34,570 Professional Services $81,550 Insurance Costs $6,540 Operating Costs $11,070 TOTAL EXPENDITURES $133,730 RECOVERY RATIO: $127,400/$133,730 = 95% Refunds Amount of funds unexpended or uncommitted after 5 years Balance as of July 1, 1997 ($6,330)