CITY COUNCIL MEETING
AUGUST 26, 2024
Consideration and possible action to conduct a public hearing to consider proposed adjustments to the maximum rates for residential, commercial and multi family solid waste collection services; adopt Resolution No. 24-51 - A Resolution establishing rate adjustments for residential, commercial and multi-family solid waste collection services charged by CR&R Incorporated for a five-year period commencing on September 1, 2024.
Background
In 2011, the City entered into a Revised and Restated Solid Waste Franchise Agreement with CR&R Incorporated that established initial maximum rates for solid waste services (AFN 399.2).
This Agreement has been amended twice to adjust and incorporate State - mandated requirements for recycling and organic waste programs inclusive of appropriate rate increases.
The current term of the Franchise Agreement is set to expire on August 31, 2024. In August 2023, the City Council approved the establishment of an ad hoc committee consisting of two Council Members to review and consider the City’s options related to Solid Waste Management Services.
The committee, along with representatives from CR&R, MuniEnvironmental (the City’s environmental consultant), and City staff met on several occasions to review the existing Franchise Agreement and propose changes (including service rates) through a third Amendment to the agreement which require a Prop 218 Hearing.
Proposition 218 is an initiative passed by California voters in 1996 designed to allow greater public involvement in rate setting processes for public agencies. It requires agencies to mail a public notice to every property owner and customer-of-record within the service area when proposing a rate change and establishes a protest process if they wish to oppose the proposed rates. In 2018, the City Council adopted Resolution No. 18-18 establishing Prop 218 procedures for increases to solid waste rates and requiring the City Council to approve the 45-day notice for proposed adjustments. On June 24, 2024, the City Council approved the Prop 218 Public Hearing notice which:
•Provided notice of tonight’s public hearing;
•Contained the link to the City’s website that listed proposed rates for all service categories over the next five (5) years; •Disclosed that if the proposed rates are approved, they will take effect on September 1, 2024; and •Contained the official ballot for property owners and customers-of-record wishing to protest the proposed rates.
Proposition 218 Requirement
On July 10, 2024, the Notice of Public Hearing was mailed out to 13,523 property owners and customers-of-record informing them of the August 26, 2024, Public Hearing. Rates cannot take effect if the City Council finds that a majority of ratepayers protest the rate increase.
A majority protest would equal 6,761 or more protest ballots. As of this afternoon (8/26) the City has received 135 protest ballots, which does not meet the majority protest threshold.
Adoption of Resolution 24-51 would establish potential rate increases for solid waste services through August 31, 2029.
If CR&R Inc. were to request an additional rate increase to the potential rates presented here, then another Prop 218 proceeding would be required.
Proposition 218 - continued
Amendment Highlights
There is no rate increase proposed for residential accounts for the first year (through August 31, 2025).
Introduction of smaller cart sizes (65 gal & 35 gal) options for residential service at reduced rates (approx. 5% reduction).
Rate reductions for Organics Collection (-6.25%); Green Waste Only bins (-
6.25%); and Manure bins (ranging from -6.25% to -17.93%). CR&R is proposing a rate increase of (15.38%) specifically for commercial accounts that use two (2) and three (3) yard recycling bins. Agreement term of 8 years (through August 31, 2032) with the option to exercise a single 2-year extension if both parties agree at that time. CR&R will annually pay an Infrastructure Impact Fee of $200,000 beginning January 1, 2025, to be used for infrastructure improvements to trash enclosures in City-owned parking lots in order to be in compliance with State-mandated requirements for 3 container collection methodology.
Amendment Highlights - continued
CR&R will establish an abandoned item collection team that will work 5 days per week (Mon – Fri) for 8 hours each day patrolling City streets and alleyways to pick up and disposed of abandoned items. At the direction of City Council, an additional layer of coverage can be added and would be passed through to CR&R customers (A service category for this has been added to the proposed Maximum Rate Schedule). CR&R will replace all collection carts for single-family dwellings and multi-family dwellings without bin service. The appearance of the new carts will include a black body and the lids will be color-coded by material type (black lid for refuse, blue lid for recyclables and green lid for organics). Collection Vehicle Replacement - To ensure collection vehicles are in good working order, collection vehicles shall not exceed an average of 8 years of age with no single current or replacement vehicles exceeding a maximum of twelve 12 years of age. Based on the current fleet inventory, four vehicles will be replaced in 2025, three vehicles will be replaced in 2027 and one vehicle will be replaced in 2028. CR&R will replace both the street sweeper and the back-up sweeper by December 31, 2025. CR&R will repaint all collection vehicles at least every 5 years or within 30 days notice from City if City determines that any collection vehicle’s appearance warrants repainting.
Billing Cycle Conversion & State-
Mandated Compost/Mulch Procurement
Billing Cycle Conversion for
Commercial & Multi-Family Accounts
Effective January 1, 2025, CR&R
shall convert from billing
Commercial and Multi-Family
customers in arrears to billing them
in advance.
To prevent customers from the
financial burden of having 2
month’s charges due
concurrently, CR&R will allow the
past month’s charges to be paid
in 12 equal installments over 12
months (interest free).
State Mandated Compost &
Mulch Procurement
As mandated by the State of
California, the City is required to
procure certified compost/mulch in
an effort to reach its “Recovered
Organic Waste Product
Procurement Target.”
The City estimates that it will procure
approximately 2,000 cubic yards
annually to be used at City parks,
other landscaped areas and public
giveaway events.
A service category for this fee has
been included in the proposed
Maximum Rate Schedule.
Rate Comparison - Single
Family/Residential Cart Service
City Hauler(s)Total Monthly Rate
Cerritos Athens $24.76
Norwalk Athens $25.81
Paramount Athens $26.07
Artesia CR&R $27.44
Lakewood EDCO $28.27
Whitter Athens & Republic $28.79
Bellflower CR&R $29.13
Downey Athens $29.37
Pico Rivera NASA $30.53
Santa Fe Springs CR&R, Republic & Serv-
Well
$34.88
Rate Comparison - Commercial 3-
Yard Trash Bin (1 x Week)
City Hauler(s)Total Monthly Rate
Lakewood EDCO $158.87
Paramount Athens $172.33
Cerritos Athens $174.87
Pico Rivera NASA $181.20
Downey Athens $185.65
Whittier Athens & Republic $199.13
Bellflower (proposed)CR&R $229.08
Artesia CR&R $230.12
Norwalk Athens $231.84
Santa Fe Springs CR&R, Republic & Serv -Well $296.24
Recommendation
1)Open the protest hearing; take testimonial and documentary evidence; and after considering the evidence, adopt Resolution No. 24-51;
2)Approve CR&R Incorporated’s rate adjustment request effective September 1, 2024; or
3)Alternatively, discuss and take other action related to this item.
CITY COUNCIL MEETING
AUGUST 26, 2024
Consideration and possible action to conduct a public hearing to consider proposed adjustments to the maximum rates for residential, commercial and multi family solid waste collection services; adopt Resolution No. 24-51 - A Resolution establishing rate adjustments for residential, commercial and multi-family solid waste collection services charged by CR&R Incorporated for a five-year period commencing on September 1, 2024.
Residential Collection
RY
2024-25
RY
2025-26
RY
2026-27
RY
2027-28
RY
2028-29
Standard 3 Set – 95 Gal Trash 29.13 30.59 32.12 33.72 35.41 Standard 3 Set – 65 Gal Trash 27.67 29.05 30.51 32.03 33.63 Standard 3 Set – 35 Gal Trash 26.22 27.53 28.91 30.35 31.87 Low Income 21.85 22.94 24.09 25.29 26.56
Senior 26.22 27.53 28.91 30.35 31.87
SB 1383 Compost Procurement (when implemented)0.68 0.71 0.75 0.79 0.83 Additional Abandoned Item Crew (2.6% increase on all rates if implemented)
Commercial Collection
RY
2024-25
RY
2025-26
RY
2026-27
RY
2027-28
RY
2028-29
64 or 96 gal Cart (1 trash & 1 recycle)69.86 73.35 77.02 80.87 84.92 Recycle Cart with Bin Service (1 x Week)43.84 46.03 48.33 50.75 53.29 (2 x Week)70.67 74.20 77.91 81.81 85.90
(3 x Week)97.49 102.38 107.48 112.86 118.50
1 Cubic Yard Bin (1 x Week)121.97 128.07 134.47 141.20 148.26 (2 x Week)191.52 201.10 211.15 221.71 232.79
(3 x Week)255.77 268.56 281.99 296.09 310.89
2 Cubic Yard Bin (1 x Week)134.80 141.65 148.73 156.16 163.97 (2 x Week)217.42 228.29 239.71 251.69 264.28
(3 x Week)299.95 314.95 330.69 247.23 364.59
3 Cubic Yard Bin (1 x Week)229.08 240.53 252.56 265.19 278.45 (2 x Week)324.47 340.69 357.73 375.61 394.40
(3 x Week)419.90 440.90 462.94 486.09 510.39
4 Cubic Yard Bin (1 x Week)265.58 278.86 292.80 307.44 322.81 (2 x Week)400.14 420.15 441.15 463.21 486.37
(3 x Week)534.69 561.42 589.50 618.97 649.92
Commercial Collection - Recycling
RY
2024-25
RY
2025-26
RY
2026-27
RY
2027-28
RY
2028-29
2 Cubic Yard Recycling Bin (1 x Week)101.18 106.23 111.55 117.12 122.98 (2 x Week)163.07 171.22 179.78 188.77 198.21
(3 x Week)224.96 236.21 248.02 260.42 273.44
3 Cubic Yard Recycling Bin (1 x Week)171.81 180.40 189.42 198.89 208.84 (2 x Week)243.35 255.52 268.30 281.71 295.08
(3 x Week)314.93 330.67 347.20 364.57 382.79
4 Cubic Yard Recycling Bin (1 x Week)199.19 209.14 219.60 230.68 242.11 (2 x Week)300.11 315.11 330.87 347.41 364.78
(3 x Week)401.02 421.07 442.12 464.23 487.44
Commercial Collection - Organics
RY
2024-25
RY
2025-26
RY
2026-27
RY
2027-28
RY
2028-29
35 Gallon Organics Cart (1 x Week)45.53 47.81 50.20 52.71 55.34 (2 x Week)73.38 77.05 80.90 84.95 89.19
(3 x Week)101.23 106.29 111.61 117.19 123.05
65 Gallon Organics Cart (1 x Week)50.59 53.12 55.77 58.56 61.49 (2 x Week)81.53 85.61 89.89 94.38 99.10
(3 x Week)112.48 118.11 124.01 130.21 136.72
95 Gallon Organics Cart (1 x Week)53.96 56.66 59.49 62.47 65.59 (2 x Week)86.97 91.32 95.88 100.68 105.71
(3 x Week)119.98 125.98 132.28 138.89 145.84
Commercial Collection - Organics
RY
2024-25
RY
2025-26
RY
2026-27
RY
2027-28
RY
2028-29
2 Cubic Yard Organics Bin (1 x Week)101.18 106.23 111.55 117.12 122.98 (2 x Week)163.07 171.22 179.78 188.77 198.21
(3 x Week)224.96 236.21 248.02 260.42 273.44
3 Cubic Yard Organics Bin (1 x Week)171.81 180.40 189.42 198.89 208.84 (2 x Week)243.35 255.52 268.30 281.71 295.80
(3 x Week)314.93 330.67 347.20 364.57 382.79
4 Cubic Yard Organics Bin (1 x Week)199.19 209.14 219.60 230.58 242.11 (2 x Week)300.11 315.11 330.87 347.41 364.78
(3 x Week)401.02 421.07 442.12 464.23 487.44