Joint Special Council/BFPD
06/5/23 06:00 PM
Environmental Services
Jessica Reed
Public Hearing
Doc ID: 5351
AGENDA ITEM
AGENDA MATTER:
2023 SOLID WASTE RATE ADJUSTMENT
EXECUTIVE SUMMARY:
This is a public hearing for the City Council to consider the adoption of a resolution approving an increase in solid waste collection service charges. Council will consider a $3.93 per month increase in residential curbside service and a commercial rate increase based on the level of service. The increase includes a CPI adjustment of 5% across all rate categories, and for the residential rate, it includes the second year of the three-year phase-in of SB 1383 program implementation costs as approved by the Council on June 20, 2022.
DISCUSSION:
The City Council has previously determined that the collection and disposal of trash, recycling, and organics in its service area shall be performed by Burrtec Waste Industries, Inc. under the terms of an exclusive franchise agreement. The agreement states that Burrtec may submit a request for rate review once a year, to include a gross adjustment of 100% of the percentage increase in the Consumer Price Index (CPI) for all urban consumers in the Riverside-San Bernardino-Ontario area, for the previous 12- month period for which information is received from the U.S. Department of Labor, but not to exceed 5% per year.
The overall percentage change in CPI for the January to December period immediately preceding July 1, 2023, the effective date of the proposed rate adjustment is 8.7%; however, because there is a 5% cap per the franchise agreement, this proposed increase would only be 5% across all rate categories.
Pursuant to Article XIIID of the California Constitution, the City of Barstow sent written notification of the proposed rate increase to all owners of real property within its service area who would be directly liable to pay for trash collection services to the property at least 45 days prior to the hearing. The notice included a description of the annual adjustment, a service rate schedule (Exhibit A), and instructions on how to participate in the hearing.
Below is an explanation of the basis upon which the charges are calculated and the reason for the proposed increase.
The monthly residential curbside collection charge is comprised of the following components:
1. An amount for the administration and operation of automated curbside trash collection service, which includes collection barrels (a 95-gallon trash barrel, 95-gallon recycling barrel, and 35- gallon organics barrel) with weekly pick-up service;
2. The cost of recyclable processing;
3. The cost of organics processing;
4. An amount to compensate the City of Barstow for its administrative costs in connection with billing, customer service, and noticing requirements;
Joint Special Council/BFPD
06/5/23 06:00 PM
Environmental Services
Jessica Reed
Public Hearing
Doc ID: 5351
AGENDA ITEM
5. An amount to compensate the City of Barstow for the franchise service provision;
6. The cost of disposal at the landfill; and
7. An amount to assist in providing programs for compliance with local, state, and/or federal regulations such as AB 939 and SB 1383.
The total proposed residential rate increase of $3.93 per month is based on the following factors:
A $0.78 per month increase for collection service based on the Riverside-San BernardinoOntario 2022 average Consumer Price Index (CPI) for All Urban Consumers; A $0.42 per month increase for the processing of recyclables; A $0.22 per month increase for the processing of the organics; A $0.16 per month increase in the administrative fee to reflect the CPI increase; A $0.32 per month increase in the franchise fee to reflect the CPI increase; and A $2.03 per month increase for SB 1383 implementation as previously approved by Council on June 20, 2022, which covers costs for additional collection, vehicle(s), equipment, containers, labor, and regulatory compliance activities.
The commercial charges are comprised of the following components:
1. An amount for the administration and operation of commercial bin trash, recycling, and organics collection service;
2. The landfill disposal fee;
3. The cost of recyclable processing;
4. The cost of organics processing;
5. An amount to compensate the City of Barstow for its administrative costs in connection with billing, customer service, and noticing requirements;
6. An amount to compensate the City of Barstow for the franchise service provision; and
7. An amount to assist in providing programs for compliance with local, state, and/ or federal regulations such as AB 939, AB 341, AB 1826 & SB 1383.
The proposed commercial rate increase is based upon the level of service as shown in Exhibit A.
Should the proposed rate increase be approved, the new rates would become effective July 1, 2023.
FISCAL IMPACT:
Joint Special Council/BFPD
06/5/23 06:00 PM
Environmental Services
Jessica Reed
Public Hearing
Doc ID: 5351
AGENDA ITEM
The cost for the Prop 218 notice is approximately $5,400 using funds available in the FY 22-23 solid waste fees/services budget. The proposed rate increase would result in an increase in franchise and administrative fee revenue for FY 23-24, as the City receives a franchise fee of 10% of all gross receipts and an administrative fee of 5% of all gross receipts.
RECOMMENDED ACTION:
Conduct the Public Hearing and subject to testimony received, adopt Resolution No. ____-2023, approving the updated solid waste rates, superseding the existing rates and repealing resolutions in conflict thereto, and waiving the full reading.