City Council
MEETING DATE: 7/13/2016
TITLE:
Title
Burrtec Waste & Recycling Services Request for a Rate Increase on Commercial, Residential, Roll-Off and Multifamily Services
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FROM:
Deanna Pressgrove, Environmental Conservation and Public Works Manager
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve a rate increase on the service rates charged to all roll-off, residential, multi-family and commercial customers based on the Consumer Price Index ("CPI") and Riverside County's gate fee increase.
Body
BACKGROUND:
In March 2016, 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. The change in the CPI for 12 months ending January 2016 was 3.10%. Attached to this report is a copy of Burrtec's request along with information from the U.S. Department of Labor.
On June 21 2016, the Riverside County Board of Supervisors approved an Edom Hill gate fee increase of 1.94%. The disposal rate will increase from $44.25 to $45.11 per ton effective July 1, 2016.
DISCUSSION:
Burrtec is requesting a rate increase that incorporates two factors. The CPI increase which is in accordance with the franchise agreement as well as 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.
Service and Franchise Fee Component $ 2....
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