ADMINISTRATIVE REPORT
MEETING DATE: March 24, 2025 AGENDA CATEGORY: New Business TO: Finance, Economic Development and Jobs Committee
FROM: Zachary Meyer, Public Works Director
DATE: March 5, 2025
SUBJECT: Proposed Gate Fee at the Organics Recycling and Composting Facility for Commercial Debris
Proposed Gate Fee at the Organics Recycling and Composting Facility for Commercial Debris. (All Wards)
RECOMMENDATION:
Staff recommends that the item be referred to full Council at the time FY25-26 budget is considered.
BACKGROUND:
The Organics Recycling and Composting Facility, in operation since the late 90s, is situated on 96 acres; 75 acres of which is utilized for the City’s organics recycling and composting operations. Under an agreement with Kern County, it also serves unincorporated areas within metropolitan Bakersfield. The facility’s operation has increased over time due to changes in federal and state rules and regulations as well as growth in population and housing. In 2024, the Organics Recycling and Composting Facility had a traffic flow of almost 94,000 vehicles and accepted and processed over 220,000 inbound tons of organic waste.
Currently, the fee structure charges an organic composting fee for residential green carts as part of the Single-Family Dwelling Unit ($286 per year per home) and commercial green carts or bins $59.25 per ton.
This fee applies to inbound organic waste brought from contracted haulers and other applicable entities within the state -mandated and city -facilitated curbside organics recycling program . Other commercial landscaping trucks and trailers are not currently charged for the organic waste they bring to the facility.
County facilities and landfills began charging $65.15 per ton for non-residential inbound organic waste on July 1, 2024. Since implementing a fee, commercial and landscaping trucks and trailers that were going to those facilities are now coming to City’s facilities to discard their organic waste free of charge. The increase in inbound tonnage increased the workload for staff and increased the production of compost and mulch.
The increase in the productio n of compost and mulch caused a few issues. Compost and mulch used to be sold to local farmers, homeowners, and nurseries at a minimal cost, providing some financial cost recovery since there was no fee being charged to inbound commercial vehicles. With continued statewide efforts for S enate Bill 1383, the market has since been flooded with recycled organic products, such as compost and mulch. Presently, the facility freely gives these products away and still has difficulty moving the products at an accepta ble rate. The compound effect of the increase in workload, and inability to move the products has created additional operational costs that are no longer even minimally offset by product sales.
The Solid Waste Division implemented an inbound organic fee of $59.25 that went into effect July 1, 2024, for 3-axle and 4-axle commercial vehicles which, to date, has resulted in revenue of $3,008. This fee will increase to $65.03 on July 1, 2025, due to the 9.75% rate increase. However, to avoid paying any fees, 3-
axle and 4-axle commercial vehicles that were coming to City’s Organics Recycling Facility switched to 2 - axle vehicles.
Beginning July 1, 2025, a fee of $65.03 per ton will be implemented for 2 -axle vehicles bringing in non- residential inbound organic waste. The proposed fee will be equivalent to the fee that is charged to curbside commercial customers in FY25-26. Estimated revenue is approximately $6.5 million dollars that can support the increased operations the facility will continue to undergo. The existing city/county agreement outlines County’s cost share of 62% of expenses and will share in the anticipated revenue from the proposed addition to the rate fee structure. The County reimbursement will decrease appropriately based on the revenue collected.
FISCAL IMPACT:
This proposal has no impact on the General Fund, it is all related to Refuse Enterprise Fund. The Refuse Fund will collect additional revenue to support operational costs.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
Proposed Gate Fee at the Organic Facility