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Item 33 Staff Report Report Regarding Charging of Residential Curbside Recycling FeesCOUNCIL AGENDA DATE: 1/16/90 ITEM NO: -7, TOWN OF LOS GATOS COUNCIL AGENDA REPORT DATE: January 11, 1990 TO: MAYOR AND TOWN COUNCIL FROM: DEBORAH ACOSTA, TOWN MANAGER SUBJECT: REPORT REGARDING CHARGING OF RESIDENTIAL CURBSIDE RECYCLING FEES RECOMMENDATION: That the cost of providing curbside recycling services, $0.82 per household, be charged uniformly to each customer. BACKGROUND: This report is presented in response to Council's request for alternative fee structures for charging of the cost of the residential curbside recycling program. DISCUSSION: There are a total of 7,614 residential customers that will receive curbside recycling services through the program recently adopted by Council. The cost of services to be provided by Green Valley Disposal Company (GVDC) is $0.82 per household per month. Based on these figures, the total cost of providing services will be $6,244 per month. (Continued on page 2) PREPARED BY: Regina A. Falkner, Mana Community Services Divi RAF:dr CSD05:A:\cnclrpts\curbrecy.fee Reviewed by: Attorney TOWN COUNCIL ACTION DIRECTED TO: ACTION OF COUNCIL: PAGE TWO MAYOR AND TOWN COUNCIL REPORT REGARDING CHARGING OF RESIDENTIAL CURBSIDE RECYCLING FEES JANUARY 16, 1990 DISCUSSION: (Continued) The cost of the program can be uniformly charged to each customer who will receive services under the program. The advantage to this alternative is that there will be an allocation of cost that will relate directly with the cost of the services received. Furthermore, showing the cost on each customer's bill clearly demonstrates that an additional service, separate and distinct from the refuse collection services, is being provided to residents. GVDC has raised some concerns regarding administration of a variable rate for the recycling program. Their computer would have to be programmed to bill residents at the different rates at a cost of $5,500. It is staff's position that this cost would have to be borne by GVDC. Additionally, because the rates would be tied to refuse service, pro -rating of costs would be necessary to accurately charge for the services. Although this can be done, GVDC is concerned that this would cause confusion for customers and would result in increased complaints. Some customers could argue that those who pay for a larger number of cans have more materials to recycle, bring in more revenues to the program and should, therefore, be charged less for the services. On the other hand, it could also be stated that customers who pay for only one or two cans recycle more and should not be "reprimanded" for their active participation in the program by charging them a fee. Staff has no information to determine whether or not there is a correlation between the number of cans a customer sets out and participation in the recycling program; this is especially true in light of the conclusion that a large percentage of the refuse generated by residents in the community consists of yard waste. CONCLUSION: It is recommended that each customer pay for the services offered to them. Although there may be some variation in the number of times that GVDC will be stopping at each residence and the amount and value of materials collected, it is fair to assume that the cost of providing services to the households will be relatively equal. It is not recommended that subsidies occur within the program. If Council wishes to charge customers for the volume of refuse they "throw -away", then it is recommended that the variable can refuse collection rate be continued. This will charge customers who dispose of more material higher rates than those who have fewer cans without making guesses about their participation in the recycling program. PAGE THREE MAYOR AND TOWN COUNCIL REPORT REGARDING CHARGING OF RESIDENTIAL CURBSIDE RECYCLING FEES JANUARY 16, 1990 Alternatives I through III are provided in Exhibit 1 should Council wish to select an alternative fee structure. FISCAL IMPACT: The cost of the recycling program will be borne by the households served. EXHIBIT: 1. Alternative Rate Structures DISTRIBUTION: 1. Sue Marki, Div. of Recycling, 1025 "P" St., Sacramento 95814 2. David Wolf, First United Methodist Church of Los Gatos, 19 High School Court, Los Gatos 95032 3. Nancy Cardinet, 221 Jones Road, Los Gatos 95032 4. Claudette Lynch, 108 Cherrystone Court, Los Gatos 95032 5. Mrs. Campbell, 17020 Los Cerritos Drive, Los Gatos 95032 6. Mrs. Williams, First United Methodist Church of Los Gatos, 19 High School Court, Los Gatos 95032 7. Dr. Irving Olender, 178 Long Meadow Drive, Los Gatos 95030 8. Ms. Linger, 312 Harding, Los Gatos 95032 9. Ms. Delores Simone, 248 Old Adobe Road, Los Gatos 95030 10. Mr. John Snelham, 247 Old Adobe Road, Los Gatos 95030 11. Mr. Gerard Wen, GVDC, P.O. Box 1227, Los Gatos 95031 12. Barbara Lee, City of Campbell 13. Todd Argow, City of Saratoga 14. Rosemary Pierce, City of Monte Sereno 15. Marilyn Basham, 108 Teresita Way, Los Gatos 95032 16. Ms. Sara Stephenson, League of Women Voters, Los Gatos, Saratoga Monte Sereno, 12491 Jolene Court, Saratoga 95070 17. Ms. Cynthia Dettner, LGS, 770 "L" Street, Suite 960, Sacramento 95814 18. Dick Gaines, 340 Johnson Avenue, Los Gatos 95032 19. Mrs. Albert Blake, 17511 Pine Street, Los Gatos 95032 20. Janet Foreman, City of Palo Alto, Public Works Dept., P.O. Box 10250, Palo Alto, CA 94303 21. Mark Bowers, City of Mountain View, Solid Waste Program Manager, P.O. Box 7540, Mountain View, CA 94039 o 0 ALTERNATIVE RATE STRUCTURES I. Variable Cost EXHIBIT 1 Number of Cans Number of Cost Total Cost Households 1 2,225 0.70 1,558 2 3,789 0.75 2,842 3 1,362 1.10 1,498 4 207 1.40 290 5 31 1.80 56 TOTAL 7,614 $6,244 $6,244 II. No Cost to Single -Can Customers Number of Cans Number of Cost Total Cost Households 1 2,225 0 0 2 3,789 1.10 4,168 3 1,362 1.25 1,703 4 207 1.50 310 5 31 2.03 63 TOTAL 7,614 $6,244 $6,244 III. No Cost to One and Two -Can Customers Number of Cans Number of Cost Total Cost Households 1 2,225 0 0 2 3,789 0 0 3 1,362 3.75 5,108 4 207 4.75 983 5 31 4.94 153 TOTAL 7,614 $6,244 $6,244 CSD05:A:\cnclrpts\curbrecy.fee • fl 0 January 16, 1990 Los Gatos, California Motion by Mr. Carlson, seconded by Mr. Ventura, that Council: establish March 1, 1991 as the last day to submit complete plans and calculation for seismic upgrades; establish May 1, 1993 as the last day to complete all work related to seismic upgrades or make findings and establish SEISMIC SAFETY CONTINUED time frames as appropriate; authorize that at the discretion of the Director of Building Services, occupancy may be revoked for failure to comply; determines there is no need for a public hearing prior to introducing the ordinance. Carried unanimously. Motion by Mr. Carlson, seconded by Mr. Ventura, to waive the reading of the draft ordinance. Carried unanimously. Town Clerk read the Title. Motion by Mr. Carlson, seconded by Mr. Ventura, that Council introduce Ordinance entitled, ORDINANCE OF THE TOWN OF LOS GATOS ADDING ARTICLE IX OF CHAPTER 7 OF THE TOWN CODE ESTABLISHING AN IDENTIFICATION AND MITIGATION PROGRAM FOR POTENTIALLY HAZARDOUS BUILDINGS BY ADOPTING THE 1985 EDITION OF THE UNIFORM CODE FOR BUILDING CONSERVATION AS PUBLISHED BY THE INTERNATIONAL CONFERENCE OF BUILDING OFFICIALS AND MAKING CERTAIN AMENDMENTS THERETO. Carried unanimously. Motion by Mr. Carlson, seconded by Mr. Ventura, that Council adopt Resolution 1990-21 entitled, RESOLUTION OF THE TOWN OF LOS GATOS ESTABLISHING PROCEDURES FOR INVESTIGATION OF UNREINFORCED MASONRY BEARING WALL BUILDINGS. Carried unanimously. 33 SOLID WASTE COLLECTION/CURBSIDE RECYCLING/RESIDENTIAL Motion by Mr. Carlson, seconded by Mr. Ventura, that the cost of providing curbside recycling services be $0.82 per household for the first year (12 months) of recycling and review at the end of that time the Proposal for Organic Collection. SOLID WASTE COLLECTION/CURBSIDE RECYCLING/MULTI-FAMILY Motion by Mr. Ventura, seconded by Mr. Carlson, that Staff continue to work with the West Valley Rate Review Committee and Green Valley Disposal Company, Inc. (GVDC) to refine and implement the following plans for expansion of the Curbside Recycling Program to serve multi -family residential units and businesses: Phase I To market and implement the residential curbside recycling program. Phase II To implement a multi -family curbside recycling program within six months of the implementation of phase I. Phase III To implement a yard waste collection program. Phase IV To address the recycling needs of the commercial sector. Carried unanimously. RECORDS RETENTION SCHEDULE/RESOLUTION 1990-22 Motion by MR Carlson, seconded by Mrs. Benjamin, that the Los Gatos Town Council adopt Resolution 1990-22 entitled, RESOLUTION OF THE TOWN OF LOS GATOS ADOPTING A TOWN -WIDE RECORDS RETENTION SCHEDULE AND A POLICY FOR ONGOING RECORDS MANAGEMENT, Carried unanimously. TC:DI:MM011690 9