Update on Solid Waste Contract 1
August 16, 2023
Solid Waste Consultants
to Local Government
City of Corona
Update on Solid Waste Contract
Background
Proposed Services
Customer Rates
Next Steps
01 Key Contract Terms
02 03
04 05
2 Background
3 February 2022 Study Session
• Industry Trends
• Solid waste market in
Riverside County
• Two options proposed by WM
• Long term vs. Short term
• Direct staff to negotiate
4 August 2022 Study Session
• Feedback on issues
• Billing and collection
• CRV
• HHW collection
5 Proposed Agreement
• Recap of Background
• Regulations and industry trends
• Solid waste landscape in Riverside County
• Corona’s current agreement
• Proposed Agreement
• Services
• Key terms
• Customer rates
• Next Steps
6 Solid Waste Regulations
• AB 939 – Waste diversion and
recycling
• AB 341 – Mandatory
commercial recycling
• AB 1826 – Mandatory
commercial organics
• SB 1383 – Short-lived climate
pollutants
• Reduce landfilling of
organics/edible food
• Enforcement on local
jurisdictions in 2022
7 Industry Trends
• Decrease in recyclables
market value
• Cost of new regulations
• Capital spending on organics
facilities
• Driver shortage
• Supply shortages; cost of
material
• Significant rate increases
among cities
8 Proposed Services
9 Overview of Current Services
• Three-cart residential collection
system
• On-call bulky waste (3 on-call
pickups/year)
• Commercial and multi-family bins
• Commercial recycling and organics
• Permanent rolloff
• No-charge: City facilities, special
events
10 Services Added Due to SB 1383
• Continued processing of
organics
• Guaranteed capacity
• Targeted education and
outreach
• Contamination minimization
• Customer compliance reviews
• Assistance with waiver
management
11 Enhanced Services
• Enhanced bulky item collection for
multi-family
• One additional special cleanup event
• Mulch and compost giveaways
• WM assumes responsibility for
residential billing
12 Key Contract Terms
13 New Agreement - Key Terms
• Term
• Extended to 2036
• Fees paid to City
• Franchise Fee – 11% residential
• Franchise Fee – 15% commercial
• Retain – $0.50 fee per residential unit for SB1383 program administration
• Annual beautification funding to City ($200K)
14 New Agreement - Key Terms
• Annual Rate Adjustments
• Limited to a blend of inflation and actual disposal costs • Inflation as measured by CPI All Urban Consumers
• Control of the Flow of Material
• City has ultimate authority
• Performance Audits
• Periodic review of contractor’s performance
15 New Agreement - Key Terms
• Liquidated Damages
• Prescribed amounts for service failures
• Dedicated Waste Management staff for enhanced
education & outreach activities
16 Customer Rates
17 Customer Rates - Residential
18 Monthly Rate
Service July 2019 December 2020 July 2021 October 2022 Proposed Standard Service
Residential Basic Cart Service $24.50 $25.31 $26.14 $26.67 $28.78 Income Qualified
Residential Basic Cart Service $18.00 $18.66 $19.25 $19.78 $20.89 Additional Carts:
Refuse $6.94 $7.15 $7.34 $7.85 $8.33
Recycling $1.38 $1.41 $1.46 $1.46 $1.46
Green Waste $3.51 $3.80 $3.92 $4.10 $4.10
Percent Change in Basic Cart 3.3% 3.3% 2.0% 7.9%
Rate Adjustment Detail
19 Description
Current
Rate
Inflation Disposal SB 1383 Proposed
Rate
Percent
Increase
Service $17.62 $0.87 $18.49 4.94%
Billing $0.52 $0.03 $0.55 5.77%
Disposal $6.01 $0.48 $6.49 7.99%
Organics $2.52 $0.13 $2.65 5.16%
SB 1383* $0.00 $0.60 $0.60
Total $26.67 $0.90 $0.61 $0.60 $28.78 7.91%
*One-time cost increase
Customer Rates - Commercial
20 Monthly Rate for 1 Pickup per Week
Container Size July 2019 December 2020 July 2021 October 2022 Proposed Refuse
2 cubic yard bin $105.85 $108.38 $112.09 $116.98 $123.32 3 cubic yard bin $139.88 $143.25 $148.12 $154.76 $163.24 4 cubic yard bin $186.49 $190.98 $197.46 $206.30 $217.61 6 cubic yard bin $251.33 $257.44 $266.12 $278.34 $294.67 64 gallon cart $39.70 $40.58 $42.04 $43.50 $45.65
96 gallon cart $45.66 $46.67 $48.35 $50.03 $52.50
Recyclables
3 cubic yard bin $46.65 $47.68 $49.39 $51.10 $53.63
Organics
64 gallon cart $45.44 $46.45 $48.12 $49.79 $52.25
2 cubic yard bin $242.28 $247.65 $256.54 $265.43 $278.56 Percent Change 2.4% 3.4% 4.5% 5.5%
Rate Comparison – Residential
21 Rate Comparison – Commercial
22 Next Steps
Next Steps
• Set public hearing per Prop 218
• Notify residents 45 days prior to public hearing
• Council considers final agreement
• Conduct public hearing
• Approve agreement and adopt new rates
24 Thank you.