Proposed 2025Solid Waste RatesNovember 26, 2024
Overview of the Presentation
2 Rate year 2025 is fifth year of the amended and extended Agreement Rate setting process:
Each July, Recology calculates the “maximum rates” for scheduled and additional services Recology’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 Rate Year 2025 Application
4 Base Contractor’s increase 3.63%
Base contractor “component” CPI index adjustments
Pass-Thru increase 0.41%
Disposal and Agency costs
2025 Adjustment Multiplier
(2025 Total Target Revenue ÷ 2024 Total Target Revenue) - 1 = 2.04% Summary of component to 2025 rates
Belmont History of Solid Waste Rates by Component
5 Proposed 2025 Residential Rates By Cart Size ($/Month) 6 6
Schedule
Schedule Description
Present Rates
Proposed 2025 Rates
$ / Month Change
R20G
Residential Waste – 20 Gallons
$40.21
$41.03
$0.82
R32G
Residential Waste – 32 Gallons
47.97 48.95
0.98 R64G
Residential Waste – 64 Gallons
94.43 96.36
1.93 R96G
Residential Waste – 96 Gallons
141.65
144.54
2.89 Overview of Schedule Q (Additional Services) Calculations of “Maximum” Rates 7 Schedule Q is related to additional services (e.g., extra pickup, community drop-off events, etc.) Schedule Q uses a different rate index than Schedule L for its annual adjustments Schedule Q adjusted annually by CPI-U General formula 2024 calculation for 2025 rates = (April 2024 CPI-U/April 2023 CPI-U = % adjustment) 2025 rate is a 3.77% increase over 2024 rates
Recommendation and Council Discussion
8 HDR and the City have independently reviewed the study and concluded that the resulting maximum rates for 2025 were calculated in a manner consistent with the Agreement Schedule L – Maximum rate adjustment multiplier is 2.04% Schedule Q – Additional Services are proposed to increase by the CPI-U General calculation of 3.77% HDR would recommend:
The City move forward with the adoption of the proposed 2025 rates If no majority protest
Proposed 2025 Schedule L and Schedule Q Rates
Proposed 2025 Residential Rates By Cart Size ($/Month)
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Proposed 2025 Commercial Waste Carts By Cart Size and Number of Pickups ($/Month) 11 11
Proposed 2025 Commercial Carts Organics By Cart Size and Number of Pickups ($/Month) 12 12
Proposed 2025 Commercial Bins By Bin Size and Number of Pickups ($/Month) 13 13
Proposed 2025 Commercial Bins Organics By Bin Size and Number of Pickups ($/Month) 14 14
Proposed 2025 Garbage Compactor Rates By Type ($/Month) 15 15
Proposed 2025 Schedule Q Rates ($/Month)
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Proposed 2025 Schedule Q Rates ($/Month)
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Proposed 2025 Schedule Q Rates ($/Month)
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Proposed 2025 Schedule Q Rates ($/Month)
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Proposed 2025 Schedule Q Rates ($/Month)
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Proposed 2025 Schedule Q Rates ($/Month)
Proposed 2025 Schedule Q Rates ($/Month)
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