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RESOLUTION NO. 98-76
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
1 1 . WHEREAS, the SRRE study and audit were available for public inspection
and review fourteen (14) days prior to this public hearing; and
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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 17,
1998, 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 17, 1998, 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
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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 17th day of August, 1998.
Mayor of the City of Mesa
ATTEST:
Deputy City Cler of the City of Costa Mesa
STATE OF CALIFORNIA 1
COUNTY OF ORANGE ► ss
CITY OF COSTA MESA ►
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. 98-76 was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on the 17th day of August, 1998.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of
the City of Costa Mesa this 18th day of August, 1998.
Deputy City Ck and ex -officio Clerk of
the City Council of the City of Costa Mesa
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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: $127,800
2. Annual tonnage collected in City: 123,250 Tons
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.
Exhibit "A"
Resolution No. 98-76
Page 1 of 2
It
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 "A"
Resolution No. 98-76
Page 2 of 2
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EXHIBIT 1
CITY OF COSTA MESA PROGRAM BUDGET 1998-99
SOURCE REDUCTION AND RECYCLING ELEMENT
Expenditures:
Salaries and Benefits
$44,730
Maintenance and Operations
$8,520
Professional Services
$74,550
Total Expenditures
$127,800
TOTAL BUDGETED SOURCE REDUCTION AND
RECYCLING PROGRAM COSTS $127,800
Exhibit 1
Resolution No. 98-76
Page 1 of 1
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EXHIBIT B
CITY OF COSTA MESA
SOURCE REDUCTION AND RECYCLING ACCOUNT
Fund Balance as of July 1, 1998
REVENUES:
Permit Fees $480 x 14 Haulers
SRRP $1.00/Ton Fee
TOTAL REVENUES
EXPENDITURES:
Staff Salaries
Professional Services
Insurance Costs
Operating Costs
TOTAL EXPENDITURES
RECOVERY RATIO: $124,990/$129,930 = 96%
Refunds
Amount of funds unexpended or uncommitted after 5 years
Balance as of July 1, 1998
Exhibit "B"
Resolution No. 98-76
Page 1 of 1
$6,720
$118,270
$124,990
$39,510
$77,660
$6,150
$6,610
$129,930
No
($4,940)
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