BACKGROUND:
In March 2023, Burrtec Waste and Recycling LLC. (Burrtec) requested an annual rate increase for residential, commercial, and roll-off services, in accordance with Article 6 of the Municipal Franchise Agreement (FA). Pursuant to the FA, Burrtec is eligible to request a rate increase each year based on applicable increases in the Consumer Price Index (CPI) for the Riverside-San Bernardino-Ontario Area. The change in the CPI from January 2022 to January 2023 was 4.97%.
The Riverside County disposal fee at the Edom Hill Transfer Station will also increase from $55.75 to $59.70 per ton, effective July 1, 2023, in accordance with The Edom Hill Master Lease Agreement between Riverside County and Burrtec.
Burrtec is requesting a rate increase incorporating the following elements:
•The CPI increase in accordance with the Franchise Agreement. •The County of Riverside’s decision to increase the cost per ton of disposal at County landfills.
•The annual net recycling adjustment is adjusted based on several components associated with recycling, such as processing, transportation, and recycling commodity prices.
DISCUSSION:
The following identifies how the commercial, residential, roll-off and multifamily customers would be impacted.
RESIDENTIAL CUSTOMER:
The current residential rate for calendar year, January – December 2023, is $25.69 a month for the weekly curbside service of 1-96-gallon Trash, Recycle and Greenwaste containers. The $25.69 rate consists of a blended rate where half the year (2023) is without the SB 1383 cart colors and the other half is with the SB 1383 cart colors.
If approved, the residential tax roll rate for calendar year, January – December 2024, would see an increase of $2.62 per month or $31.44 annually. The 2024 monthly rate would be $28.31. The rate increase would be effective for the assessment on the 2023/2024 tax rolls.
Residential Rate Comparison with other jurisdictions with similar programs. These rates reflect current rates, not the proposed rates that will be effective July 1, 2023.
City of Coachella $31.44
City of Indio $26.13
Riverside County $27.32
City of Palm Springs $25.93
COMMERCIAL CUSTOMERS:
The total monthly commercial fee is composed of several elements with varying increases depending on the size of containers and the level of service. A three-yard container serviced once a week is the average service level for most Cathedral City commercial customers.
If approved, the commercial rate increase for a 3-yard container serviced 1x per week (most common service bin option) would be $10.88 per month effective July 1, 2024.
Commercial customers receive direct bills from Burrtec for the services provided.
SUMMARY OF PROGRAMS OFFERED BY CITY AND/OR BURRTEC FOR CITY’S RESIDENTIAL, MULTI-FAMILY AND COMMERCIAL CUSTOMERS:
There are no additional charges to the customer for any of the programs listed below. •Curbside Collection:
oWeekly collection of 1-96-gallon Trash, Recycle and Organics Cart. oAdditional (1) Recycling and Organics Cart.
oSB 1383 Residential Programs which includes kitchen pails and educational programs.
•Bulky Large Item Collection Program:
oResidential - 4 large items weekly – unlimited.
oCommercial - 4 large items weekly – unlimited.
oMultifamily (apartments, condos etc.) - 4 large items weekly, unlimited. •Motor oil and oil filter weekly residential curbside program. •Electronic and Tire Disposal Program (weekly).
•Residential Household Hazardous Waste Disposal Program (weekly). •Medication and Sharps (needles) Disposal Program (weekly). •Document Shredding Events:
oCity-wide events October through May (first Saturday of each month). o55+ Communities and Senior Center monthly service.
oAll City facilities monthly service.
•Reusable Tote Bags.
•Monthly Residential Street Sweeping Service.
•Cathedral City Environmental Education Program:
oS.C.R.A.P. Gallery Programs.
oGarden and Composting programs for Elementary, Middle schools and the Boys and Girls Club.
oTrash receptacle drawing contest Elementary and Middle school programs.
•Multi-Family Recycling Program:
oContainers for the collection of recyclables.
oEducational brochures and signage.
oFree waste audits.
•Backyard Composting Program.
•Community Clean-up Programs.
•Special Services provided for disabled persons.
•Illegal Dumping Collection Program.
•City’s WaterSmart Landscapes Grant Program ($500 rebate program for front lawn elimination of greenwaste).
• Community Outreach:
oCity-wide residential mailer distributed to 24,500 households twice annually.
oDirect mail pieces for target areas needing reminders regarding programs. •Commercial and Multi-Family SB 1383 Programs which include on-site waste and recycling audits at no charge.
•City Sponsored Events - Free trash, recycling, and portable toilets for up to 5 events annually.
•Holiday Christmas Tree Recycling Program.
This item is presented to the City Council for discussion, comments and direction in anticipation of being presented for Public Hearing and City Council approval at the June 28, 2023, City Council Meeting.
FISCAL IMPACT:
This rate increase is paid by customers and will, therefore, have no negative impact on City funds.