HomeMy WebLinkAbout7/7/2004 - STAFF REPORTS (25) DATE: July 7, 2004
TO: CITY COUNCIL
FROM: RECYCLING COORDINATOR VIA DIRECTOR OF COMMUNITY&
ECONOMIC DEVELOPMENT
APPROVE TRANSFER OF $40,000 FROM RECYCLING FUND BALANCE TO COVER
COSTS OF INCREASED SOLID WASTE TIPPING FEE AT EDOM HILL LANDFILL.
RECOMMENDATION:
That the City Council approve the transfer of$40,000 from the Recycling Fund Balance into
a new line item to cover the costs of the County's increase in the solid waste tipping fee
from $30.00 per ton to $30.54 per ton.
SUMMARY:
The City of Palm Springs' franchise agreement with Palm Springs Disposal Services
(PSDS), approved on the June 18, 2003, stipulates that, should the County of Riverside
increase the tipping fee at the County Landfill, PSDS may request a rate increase from its
customers or the City to cover the increase.
The City and PSDS received notification that the County is increasing the tipping fee from
$30.00 per ton to $30.54 per ton effective July 1, 2004. PSDS can ask its customers to pay
an additional $.04 to $.09 per month or the City could cover the increase through a lower
amount received from the difference in the current tipping fee and the $38.50 per ton still
being collected as the Diversion Facility Fee,
BACKGROUND:
The City of Palm Springs has a solid waste collection Franchise Agreement with Palm
Springs Disposal Services, which was approved on June 18, 2003. This agreement allows
for the collection of an additional $8.50 per ton on all solid waste tonnage disposed at a
disposal site, exclusive of tonnage generated by City facilities and collected in debris boxes
and compactors. This $8.50 is the difference in the tipping fee cost of $38.50, collected
prior to 1996 and the current $30.00 per ton, which was placed into a fund for the
development of a diversion facility in the City of Palm Springs. The Franchise Agreement
was then amended to place the$8.50 fund into a separate Diversion Facility Account. The
City Attorney took that Franchise Amendment (#4) to the court to seek a ruling that this
action is valid in relation to Proposition 218. The Court's ruling validating the action was
rendered July 14, 1999, so these funds have been collected and set aside for such a
project.
This increase in tipping fee is the first since Amendment#4 was adopted. The Franchise
Agreement provides for PSDS to exercise an option to increase customer rates to cover the
increase in tipping fees. However, City staff is recommending that, in lieu of a customer rate
increase, the extra $.54 per ton be taken out of the monies that have been directed to go
for a diversion facility. The total amount that would be diverted from the Recycling Fund
would be approximately$40,000 annually. Thus, instead of receiving the full $8.50 per ton,
the City's Recycling Fund would effectively receive$7.96 per ton. ,
Tippuig Fee Increase
Resolution
hily 7,2004
2
Funds are available in the Recycling Program Fund Balance.
Elaine Wedekind John 0. Raym n
Recycling Coordinator Dire r of Cora nity & Economic
elopment
Approved: -S �ll
City Manager
Attachment:
Budget Resolution
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2004-05 FISCAL YEAR.
WHEREAS Resolution 20973 approving the budget for the fiscal year 2004-05 was
adopted on June 9, 2004; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to
record inter-fund cash transfers as required in accordance with this Resolution, and that
Resolution 20973, adopting the budget for the 2004-05 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
125 1280 TBA $40,000
Recycling Recycling Tipping Fee
Adjustment
Purpose : Offset the increase in County Solid Waste Tipping Fee at Edom Hill Landfill of
$.54 per ton for the new fiscal year.
SECTION 2. SOURCE
Fund Activity Account Amount
125 Fund Balance 29301 $40,000.
Fund Balance
Adopted this day of 2004.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager 40-11,11,
REVIEWED AND APPROVED