Solid Waste Cost of Service and Rate Study
City Council Hearing - August 23, 2022
Long Beach Refuse Rates
• 2016 – 2019: No Refuse Rate Increase
• March 1, 2019 Increase
o Single Family – 9%
o Commercial – 10%
• October 1, 2019 Increase
o Single Family – 9%
o Commercial – 10%
• No rate increase since October 1, 2019
Cost of Service Study - Background
2 • Solid waste collection costs have
increased
• Current rates do not generate
sufficient revenue to cover cost
of service
• State-mandated diversion
programs require additional
funding for implementation
(Senate Bill [SB]1383 – Organics
Diversion)
Cost of Service Study – Findings
3 Refuse & Recycling Rates
Current
Rate
Current
Cost of
Service
Single Family 64 gallon 24.47$ 27.36$
Single Family 96 gallon 28.99$ 36.03$
2-yard 110.82$ 150.23$
3-yard 142.09$ 205.12$
4-yard 222.65$ 269.93$
Refuse Fund – Operating Surplus/Deficit
4 • Liability Insurance has increased 113%
o $1,433,176 increase
• Fleet costs have increased 60%
o $4,135,216 increase
• Technology and Innovation costs have increased 48%
o $893,228 increase
• Bad Debt has increased 147%
o Pre-Covid average was $142,000 annually
o FY 22 projected at $1,600,000
Increases since October 1, 2019
Increased cost examples
5 Disposal Costs
6 Increased Demand
7 *estimate
Projected Operating Reserve Fund Balance
8 *Green line indicates reserve balance with proposed rate increases Proposed Rates – Single Family (96-gallon container)
9 *Chart shows updated amounts for Oakland, San Jose, Santa Barbara and Burbank since Prop 218 letters were mailed *includes organic collection
Proposed Rates – Commercial Accounts
10 **Does not include organics
Jurisdiction/ City
2 YD Bin
1X/wk
3 YD Bin
1X/wk
4 YD Bin
1X/wk
City of Long Beach - Current 110.82$ 142.09$ 222.64$ City of Anaheim** 155.86$ 181.81$ 213.89$ City of Long Beach - Proposed 9/1/2022 142.84$ 183.26$ 287.37$ City of Pasadena N/A 196.06$ N/A
City of Santa Monica 157.20$ 212.82$ 314.41$ City of Long Beach - Proposed 1/1/2023 199.18$ 255.82$ 401.73$ City of Los Angeles** 261.14$ 281.65$ 302.17$ City of San Jose 222.60$ 297.80$ 373.05$ City of Burbank 269.59$ 316.25$ 363.25$ City of Santa Barbara 256.38$ 384.57$ 512.76$ City of Oakland 442.27$ 634.21$ 817.69$ City of Torrance
City of Sacramento
Commercial Solid Waste Bins
City does not offer Commercial Services
City does not offer Commercial Services
Current Services Provided
• Solid Waste and Recycling
collection to approximately
118,000 accounts on a minimum
weekly basis
• Twelve Special (Bulky) Collections
• Hazardous Household Waste
drop-off
• E-Waste Collection
• Waste Diversion Programs
• Public Education
Current and Future Services
11 Fiscal Year (FY) 23 Services Proposed
• Organics (food and green) waste
collection for Commercial accounts
• Administrative, Enforcement and
Education staffing to ensure
compliance with State laws (SB 1383)
• Food Recovery program –
enforcement, education and capacity
planning edible food generators and
food recovery agencies
All Accounts
• Increase to recycling contract
• 8 positions
o Administrative support
o Enforcement programs
o Educational components
FY 23 Proposed Support
12 Commercial Accounts
• Staffing and Operational
requirements for collection of
commercial organics waste:
o Refuse Operators – 8 FTE
o Refuse Supervisor - 1 FTE
o Operating Costs
FY 23 Proposed Positions are required to meet State Laws SB 1383 (Short- Lived Climate Pollutant: Organic Waste Methane Emission Reductions), AB 1826 (Mandatory Commercial Recycling) and AB 341 (Mandatory Organics Recycling)
• Residential Collection - Single Family and Multi-Family o Phased implementation
o Operational Costs (Positions, Vehicles, Carts, Disposal, etc.) • Finalizing routing Request For Proposal (RFP) to:
o Develop organic collection routes
o Optimize current solid waste routes
• Cost of reloading and transportation of organic material to meet state diversion requirements
• Property to house additional staff and vehicles
Cost of Service – What is NOT included
13 • Shortage of Candidates
o Class B Drivers license
• Compensation
• Supply chain issues
o Refuse Trucks
o Carts
• Lack of local infrastructure for disposal of organic material SB1383 - Implementation Impacts (Operational)
14 Receive the supporting documentation into the record; receive public comment pursuant to Proposition 218; direct the City Clerk to tabulate the written protests and report the results of the tabulation to the Mayor and City Council during the August 23, 2022 hearing; and, if a “majority protest” is not established, conclude the public hearing and adopt a Resolution establishing the Solid Waste Service Rates under a two-step rate adjustment. (Citywide) Recommendation
15 Thank you
Dikran Melkonian
Manager, Environmental Services Bureau
Deputy Director, Public Works Department
16