City Council
MEETING DATE: 6/22/2015
TITLE:
Title
Burrtec Waste and Recycling Services Rate Increase Request
End
FROM:
Deanna Pressgrove, Environmental Services and Public Works Manager
Pat Milos, Community Development Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve the rate increase to all roll-off, residential, multi-family and commercial customers based on Riverside County's gate fee increase.
Body
BACKGROUND:
In May 2015, Burrtec Waste & Recycling Services requested an annual rate increase for residential, commercial and roll-off services, in accordance with Article 6, Section 6.3 of the Municipal Franchise Agreement.
Pursuant to the franchise agreement, Burrtec is eligible each year to request a rate increase based on the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County Area. For the 12 months ending January 2015, with the exception of commercial recycling rates due to AB341, there is no CPI increase.
On June 16, 2015, the Riverside County Board of Supervisors approved an Edom Hill gate fee increase of 6.09%. The disposal rate will increase from $41.70 to $44.24 per ton effective July 1, 2015.
DISCUSSION:
In summary, Burrtec is requesting a rate increase that incorporates the County's decision to increase the cost per ton of disposal at County landfills. The following identifies how the commercial, residential, roll-off and multi-family customer will be impacted.
● Commercial Customer: The total monthly commercial fee is composed of several elements with varying increases. The rate breakdown below represents a three-yard container serviced once a week. This is an average service level for most customers.
Franchise Fee Component $ 0.35 increase
Riverside County Disposal Fee $ 2.20 increase
If approved the rate increase would be effective July 1, 2015 and the increase to the average commercial customer will be $2.55 per month.
● Residential Customer: The current residential rate is $15.25 a month. If approved the new residential rate will be $15.59 a 2.20% increase.
● Multi-Family Customers: The total monthly multi-family fee is composed of several elements with varying increases. The rate breakdown below represents the average service level for multi-family housing.
Franchise Fee Component $ 0.04 increase
Riverside County Disposal Fee $ 0.25 increase
If approved the rate increase would be effective July 1, 2015 and the increase to the average multi-family customer will be $0.29.
● Multi-Family Customers Recycling Laws: The State of California approved AB341 mandating commercial recycling to begin July 1, 2012. The new law mandates all businesses that have four yards or more of commercial solid waste per week shall have recycling services. The recycling mandate also requires multifamily residential dwellings of five or more units to have recycling services. The City and Burrtec have worked together to implement the new program. We have contacted the commercial and multifamily customers to let them know how they can reduce their trash bill by recycling. We will continue to work with the customers to make sure they have the service level that works best for them.
FISCAL IMPACT:
This rate increase will have no negative impact on City funds. There will be a slight increase in revenue to the general fund as a result of the rate increase to customers per the franchise agreement.
ATTACHMENTS:
● Burrtec Rate Adjustment Letter and Proposed Burrtec Rate Sheets
● Riverside County Staff Report