HomeMy WebLinkAboutORD-07-93 Amend Se. 13.60.020 Surcharge on Monthly Sanitation & Sewer SystemORDINANCE NO. 7-
93 AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF ORANGE AMENDING SECTION 13.60.
020 OF THE ORANGE MUNICIPAL CODE TO
ESTABLISH A SURCHARGE ON MONTHLY SANITATION AND
SEWER SYSTEM CHARGES BASED UPON THE COST
TO CONSTRUCT AND EQUIP A MATERIALS
RECOVERY
FACILITY.WHEREAS, the California Integrated Waste Management Act
of 1989, commonly referred to as AB 939, requires that
local agencies implement an integrated waste management strategy
which will divert, through solid waste recycling and other means 25%
of their solid waste from land disposal by 1995 and 50% thereof
by the year 2000;
and WHEREAS, to implement said strategy and to meet the
waste diversion and related obligations imposed on local agencies by
AB 939, the city's Solid Waste Contractor has proposed to
construct and operate a materials recovery facility (MRF), also known as
a Solid Waste Transfer and Processing Facility to be located
at 2050 North Glassell Street, City of Orange, both building
and equipment is estimated to cost $6,500,000 to be repaid
with interest over a term of not more than 10 years in duration;
and WHEREAS, city's Solid Waste contractor entered into
a Memorandum of Understanding with the City outlining the
specifics of a definitive agreement which sets forth their intentions
with respect to a solid waste transfer and processing facility
which city's Solid Waste contractor or its affiliates propose
to construct and operate in the city of Orange, and assuring
the city a substantial interest in and first right of use of the
MRF,compliance with AB 939 and reductions in anticipated costs
of such compliance compared to use of other available
facilities;
and WHEREAS, financing arrangements have been concluded
which assure construction of the MRF;
and WHEREAS, the city Council after due notice and
public hearing in compliance with state law finds that the cost of
the MRF and its operating expenses are both a proper expenditure
of public funds and a cost effective means of complying with
state law, and should be paid for by a surcharge on sanitation
and sewer charges in an amount necessary to repay the cost of the
MRF and its initial equipment on an annual basis, as
financed.NOW, THEREFORE, the City Council of the City of orange
does ordain as
follows:Section
I:Section 13.60.020 of the Orange Municipal Code is
amended to add the following subsection N:
N: Materials Recoverv Facilitv Surcharqe
1. A Materials Recovery Facility (MRF) surcharge
applicable to each class of sanitation and sewage charge set
forth in subsections A through L in an amount sufficient to
pay debt service, and principal reduction on the cost of
building and equipping the MRF for the city of Orange. Such
surcharge shall be based on the total number of units billed
during the prior year divided into the total amount of debt
service and principal reduction assessed to the City for the
MRF. The initial per unit surcharge shall be $2.25. The
monthly surcharge shall be adjusted annually as of January
1st of each year to reflect any changes in the total number
of units billed. The City Manager or his designee shall
report to the City Council on or before December 1st of each
year concerning any adjustments necessary in the surcharge.
Any reductions in the surcharge contained in the City
Manager's report shall take effect as of January 1st of the
succeeding year without further Council action unless
overridden by the Council prior to that date. Any increase
in the surcharge for any year shall be established by
resolution of the City Council after such notice and hearing
as may be required by state law.
2. The surcharge shall terminate upon the termination of
the city's obligations to pay for debt service and principal
reduction for the MRF. Any excess remaining in the
surcharge fund upon termination shall be applied to reduce
the City's obligation for operational costs of the MRF for
the benefit of rate payers under this section.
SECTION II:
A summary of this Ordinance shall be published and a
certified copy of the full text of this Ordinance shall be posted
in the Office of the City Clerk at least five (5) days prior to
the city Council meeting at which this Ordinance is to be
adopted. A summary of this Ordinance shall also be published
once within fifteen (15) days after this Ordinance's passage in a
newspaper of general circulation, published, and circulated in
the City of Orange. The City Clerk shall post in the Office of
the City Clerk a certified copy of the full text of such adopted
Ordinance along with the names of those City Council members
voting for and against the Ordinance in accordance with
Government Code Section 36933. This Ordinance shall take effect
thirty (30) days from and after the date of its final passage.
Adopted this 13th day of July 1993.
c@:~~.Ord
No. 7-93 -2-
ATTEST:
Cit:~fZiff(~ange
STATE OF CALIFORNIA)
COUNTY OF ORANGE )
CITY OF ORANGE )
I, MARILYN J. JENSEN, city Clerk of the city of orange,
California, do hereby certify that the foregoing Ordinance was
introduced at the regular meeting of the city Council held on
the 22nd day of June , 1993, and thereafter at the
regular meeting of said City Council duly held on the ~ day
of Julv , 1993, was duly passed and adopted by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Ci~~j;?~
RDH:dg 3-Ord No. 7-