Proposed 2024Solid Waste RatesSeptember 12, 2023
Overview of the Presentation
2 Rate year 2024 is fourth year of the amended and extended Agreement Rate setting process:
Each July, Recology calculates the “maximum rates” for scheduled and additional services Reclogy’s data and information is independently audited City and HDR independently review calculations of “maximum rates” City adopts solid waste rates that do not exceed the Contractor’s calculated “maximum” rates The calculation of “maximum rates” is formula-driven and specified in the Section 11 of the Agreement Overview of Franchise Agreement and Rate Setting Process 3 Primary Rate Driver - SBWMA Tipping Fee Increase
4 Tipping fees are set at a $ / ton amount to cover the SBWMA budgeted expenses Current operating agreement with South Bay Recycling expires December 31, 2023 No extension was made so an RFQ was issued for the operation New Shoreway operating agreement starts January 1, 2024 with South Bayside Industries Results in 25% increase in tipping fee due to increase operating costs Cost Category
% Increase
Shoreway Operations Agreement
19%
Disposal & Processing
3%
San Carlos Host Fee
1%
Remaining Budget (Admin, Other Shoreway Operations)
2%
Total
25%
Rate Year 2024 Application
5 Base Contractor’s increase 2.22%
Base contractor “component” CPI index adjustments
Pass-Thru increase 21.47%
Disposal and Agency costs
2024 Adjustment Multiplier
(2024 Total Target Revenue ÷ 2023 Total Target Revenue) - 1 = 11.02% Summary of component to 2024 rates
Belmont History of Solid Waste Rates by Component
6 Proposed 2024 Residential Rates By Cart Size ($/Month) 7 7
Schedule
Schedule Description
Present Rates
Proposed 2024 Rates
$ / Month Change
R20G
Residential Waste – 20 Gallons
$36.22
$40.21
$3.99
R32G
Residential Waste – 32 Gallons
43.21 47.97
4.76 R64G
Residential Waste – 64 Gallons
85.06 94.43
9.37 R96G
Residential Waste – 96 Gallons
127.59
141.65
14.06 Overview of Schedule Q (Additional Services) Calculations of “Maximum” Rates 8 Schedule Q is related to additional services (e.g., extra pickup, community drop-off events, etc.) Schedule Q uses a different rate index than Schedule L for its annual adjustments Schedule Q adjusted annually by CPI-U General formula 2023 calculation for 2024 rates = (April 2023 CPI-U/April 2022 CPI-U = % adjustment) 2024 rate is a 4.20% increase over 2023 rates
Recommendation and Council Discussion
9 HDR and the City have independently reviewed the study and concluded that the resulting maximum rates for 2024 were calculated in a manner consistent with the Agreement Schedule L – Maximum rate adjustment multiplier is 11.02% Schedule Q – Additional Services are proposed to increase by the CPI-U General calculation of 4.20% HDR would recommend:
The City move forward with the Proposition 218 process for the proposed 2024 rates Set a Public Hearing date for November 14, 2023
Proposed 2024 Schedule L and Schedule Q Rates
Proposed 2024 Residential Rates By Cart Size ($/Month)
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Proposed 2024 Commercial Waste Carts By Cart Size and Number of Pickups ($/Month) 12 12
Proposed 2024 Commercial Carts Organics By Cart Size and Number of Pickups ($/Month) 13 13
Proposed 2024 Commercial Bins By Bin Size and Number of Pickups ($/Month) 14 14
Proposed 2024 Commercial Bins Organics By Bin Size and Number of Pickups ($/Month) 15 15
Proposed 2024 Garbage Compactor Rates By Type ($/Month) 16 16
Proposed 2024 Schedule Q Rates ($/Month)
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Proposed 2024 Schedule Q Rates ($/Month)
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Proposed 2024 Schedule Q Rates ($/Month)
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Proposed 2024 Schedule Q Rates ($/Month)
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Proposed 2024 Schedule Q Rates ($/Month)
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Proposed 2024 Schedule Q Rates ($/Month)
Proposed 2024 Schedule Q Rates ($/Month)
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