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Staff Report
City Council
Item No. 5.A
Meeting Date: June 28, 2023
From: Deanna Pressgrove, Environmental Conservation & Public Works Manager
Title: 2023/2024 Annual Rate Increase Request for Solid Waste and Recycling Collection for Residential, Commercial and Roll Off Services
City Council
RECOMMENDATION:
To approve a 2023/2024 tax year rate increase for the collection, recycling, and disposal of municipal solid waste on Commercial, Residential, and Roll-Off Services; and approve a Resolution approving tax roll billing for Residential Services.
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%.
Additionally, 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 based on several components associated with recycling, such as processing, transportation, and recycling commodity prices.
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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 one (1) each 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, will increase $2.62 per month or $31.44 annually. The 2024 monthly rate will increase to $28.31. The rate increase will be effective for the assessment on the 2023/2024 tax rolls.
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 one (1) time per week (most common service bin option) will be $10.88 per month effective July 1, 2023.
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. oOne (1) additional 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.
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•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.
COLLECTION VIA THE TAX ROLL:
California Health and Safety Code Sections 5473 et. seq, and Section 6.04.030 of the City of Cathedral City Municipal Code authorizes the City to adopt a resolution by two- thirds of the members of the City Council to collect solid waste rates on the tax roll, in the same manner and at the same time as the general taxes. In accordance with Health and Safety Code Section 5473, the City has prepared a written report containing a description of each parcel of real property receiving such services, and the amount of the charge for each parcel for the 2023-2024 tax year. This report is on file with the City Clerk and is attached to the proposed resolution as Exhibit B. By approving the proposed resolution, the City Council will be authorizing the City to collect solid waste rates on the tax roll in the same manner and at the same time as the general taxes.
FISCAL IMPACT:
This rate increase is paid by customers and will, therefore, have no negative impact on the City’s General Fund.
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FIVE-YEAR STRATEGIC PLAN:
Goal D: Innovation
Objective: Cathedral City continually focusses on improving service delivery and customer experiences by successfully leveraging technology and creative initiatives to improve public services, public safety, and stimulate economic growth.
ATTACHMENTS:
Resolution
Exhibit A Rates
Exhibit B 2023-2024 Tax Roll