City of Rialto
City Council
April 25, 2023
Background
Financial Evaluation
AGENDA
Senate Bill (SB) 1383:
Sets statewide mandates for organics recovery efforts
Builds on prior law to incrementally reduce disposal of organic waste Requires all generators to be provided organic waste recycling services Edible food recovery
City obligated by CalRecycle CAP to meet deadlines
WHAT ARE ORGANICS?
Food
Green waste
Landscape & Pruning Organic Textiles Carpets
Paper products
Printing/ Writing paper
Lumber
Wood
Manure
Digestate
Biosolids
Sludges
BACKGROUND
BACKGROUND
That’s Two-Thirds of Our Waste Stream!
California Generates
Approximately
20-23 Million Tons of Organic Waste
Every Year
?
?
?
Non-Organic Waste
Edible food
In California, Millions Are
Food Insecure
California Throws Away
5.6 Million Tons
of Food Waste Every Year!
1 in 8 Californians
1 in 5 Children
BACKGROUND
Landfilled Organic Waste Emits
Methane Gas
A Super Pollutant
More Powerful than C02
Methane Gas Contributes to Climate Change in California
BACKGROUND
Provide Organics Collection to All
Monitor Compliance
and Conduct
Enforcement
Secure Access to Edible and Recycling Food Recovery Capacity Procure Recyclable and Recovered Organic Products
Establish Edible Food Recovery Program
Conduct Education & Outreach to Community
Most requirements match and expand upon AB 1826
Local Agency Responsibilities
RATE ADJUSTMENT REQUEST
2023 Rate Review Impacts
Service Consumer Price Index
Disposal and processing cost components
Trash, Organics (Green & Food Waste), Recyclables
Program Impacts
SB 1383 Compliance and expanding organics recycling amongst all generator sectors
Recent Rate History
2020 - Defer the 2020/21 adjustment until 2021/22 and include the cost recovery component in the 2021/22 rate year 2021 – Revised to spread residential deferral over two years (2021/2022 & 2022/2023) 2022 - No adjustments; defer adjustments and 2020 residential recovery in 2023 2023 – Implement rate adjustments with 1383 programs
Disposal and Processing
Cost Component
(per ton)
Current
New
Change
Trash
$40.75
$42.07
$1.32
Organics
$57.29
$86.96
$29.67
Recyclables
$66.90
$71.23
$4.33
Note: 1) Current Organics tip fee only includes green waste. The New Organics tip fee includes food and green waste materials. 2) Alternative Organics Processing per ton costs:
Victor Valley Compost - $106.58;
Puente Hills MRF - $117.67;
Scholl Canyon - $136.05.
Monthly Charge
Service Level
2019
2020
2021
2022
Proposed
2023
60 gallon tax roll
$ 29.96
$ 29.96
$ 30.81
$ 30.81
$ 34.09
40 gallon tax roll
$ 29.25
$ 29.25
$ 30.08
$ 30.08
$ 33.32
Senior tax roll
$ 22.74
$ 22.74
$ 25.57
$ 25.57
$ 28.32
Note: 1) Residential rates not adjusted in 2020 or 2022 2) Seniors 62 & older
Residential Rates
SB 1383 Cost Impacts
Mixed Organics Disposal
SB 1383 Program Costs
Total
$ 1.86
$ 0.90
$ 2.76
Monthly Charge
Commercial Service
One time per week
2021
Current
Proposed
2023
Difference
3 yard trash bin
(includes no charge recycling)
$262.86
$235.82
$238.43
$2.61
2 yard food waste or trash bin
$196.56
$178.53
$182.90
$4.37
65 gallon Food Waste barrel
$49.47
$46.97
$46.07
($0.90)
Multi-family 3 yard bin
With bulky item collection program
$255.84
$228.80
$278.47
$49.67
Note: 1) Commercial rates not adjusted in 2020 or 2022. 2) MF rates now include the organics recycling program. 3) Pavement Maintenance Fee moratorium April 1, 2023 included in Current Rate Commercial & Multi-Family Rates
Rate Comparison
RATE ADJUSTMENT REQUEST
Rate increase is reasonable
10.65% - 10.80% for residential
-5.86% to 25.13% for commercial
Based upon only increases to Burrtec’s costs of operation City-requested program adjustments via amendment, including hiring additional staff & legislative compliance Cost savings for economies of scale
Questions & Comments