6/15/2023
1 RiversideCA.gov1
RiversideCA.gov
SOLID WASTE SERVICESPROPOSED FIVE YEAR RATE PLANPublic Works DepartmentCity CouncilJune 27, 2023 RiversideCA.gov2
NEW FIVE-YEAR RESIDENTIAL RATE PLANSNEW FIVE-YEAR RESIDENTIAL RATE PLANSWATER: $0.15 per day ELECTRIC: $0.21 per day REFUSE: + $0.09 per day $0.45 per dayor$13.50 per 30-day month Numbers shown are average annual increases
6/15/2023
2 RiversideCA.gov3
PROPOSED SOLID WASTE RATE INCREASEWHAT DOES THIS MEAN FOR OUR RESIDENTS?Costs to increase $0.08-$0.09 per day$2.42 - $2.75 per month over a 5 year period or the price of aCup of Coffee
RiversideCA.gov4
CALIFORNIA CITIES ARE INCREASING RATES
90% of citiesare considering rate increasesThe averagecity is considering a 17.94% rate increase 6/15/2023
3 RiversideCA.gov5
COMPARISON BY CITY
NOTE: Only 26% of agencies surveyed include street sweeping services in solid waste rates –Riverside does. Not all cities are yet compliant with SB 1383.
RiversideCA.gov6
WHO WE ARESolid Waste Collection ServicesStreet Sweeping Services
6/15/2023
4 RiversideCA.gov7
WHAT WE DOServe 63,484 homesweekly.Sweep 800+ miles of streets, twice a month.Ensure compliancewith State regulationsProvide community services RiversideCA.gov8
ACCOMPLISHMENTS674.6 Million pounds of waste collected4.8 Million pounds of street debris swept97.69 Million pounds of green waste diverted from landfills (up 8% from 2021)26,662 calls for service responded to in 2022
6/15/2023
5 RiversideCA.gov9
SOLID WASTE SERVICES: ADDED VALUESpecial Services and Initiatives:1. Disabled resident pickup assistance2. Free “Bulky Item” pickup services:Most out of all surveyed agencies3. Clean Up Riverside4. Support Beautify Riverside, Festival of Lights,and Keep Riverside Clean & Beautiful5. Local career days & job fairs6. Participate in City-hosted events:Truckapalooza & Insect Fair RiversideCA.gov10
HISTORY OF RATE INCREASESYEAR PERCENT INCREASE2008/090.00%2009/100.10%2010/111.00%2011/121.00%2012/131.00%2013/141.90%2014/151.10%2015/160.70%2016/172.00%2017/182.00%2018/19 9.80%2019/20 3.20%2020/21 7.70%2021/22 6.70%2022/23 4.70%Rates remained at or below 2% for 10 years 6/15/2023
6 RiversideCA.gov11
$23$26$29$32$35$38FY1718FY1819FY1920FY2021FY2122FY2223FY2324FY2425FY2526FY2627FY2728 MillionsRevenue / Expenditure Comparison(Adopted Rates)ACTUAL EXPENDITURES PLUS ENCUMBRANCESACTUALS REVENUEPROJECTED EXPENDITURESPROJECTED REVENUEExhaust all reserves by FY 26/27Spend $31M more than it earns by FY 27/28Lose $4.4M each year by FY 27/28PROJECTED REVENUES & EXPENDITURESIf unchanged, the fund will:
$4.4M
RiversideCA.gov12
RISING COSTS OUTPACE EXISTING RATE PLANInflation4.70%4.58%8.60%7.30%0%1%2%3%4%5%6%7%8%9%10%2022 2023 (Projected / Planned)Consumer Price Index vs. City Rate IncreasesCity Rate IncreaseCPI Increase Higher costs for disposal, bins, vehicles, and repairs (Estimated 7.3% CPI in 22/23)Customers disposed of 12% more wastethroughout the pandemic 6/15/2023
7 RiversideCA.gov13
THE WHY•China no longer accepts recycled goods• Prior to China’s ban, the City made money on recycling• In FY 22/23, the City paid $2.3M to recycle• Recycling is mandatory in CaliforniaCHINA NATIONAL SWORD POLICY RiversideCA.gov14
THE WHY“These new SB 1383 Regulations are the most far-reaching solid waste management changes in decadesand CalRecycle has estimated implementation will cost $20 to $40 billion over the next decade.”– League of Cal Cities•Through Senate Bill 1383, California is the only State to require:a) Organics recycling for all wasteb) Edible food recovery programsc) Food waste diversion programs•FY22/23 - $2.9 Million in commingled organics costs• Additional staffing and software costsCALIFORNIA SENATE BILL 1383 MANDATES
6/15/2023
8 RiversideCA.gov15
THE WHYOTHER STATE REGULATIONSTequesquite Landfill maintenance & reporting:•$1.2M gas collection system and flare•SC-AQMD ComplianceCalifornia Air Resources BoardAdvanced Clean Fleet Regulation:•50% of new vehicles must be ZEV by Jan 2024•100% of new vehicles must be ZEV by 2027 RiversideCA.gov16
UNDER-RESOURCED SERVICES2,560 illegal dumps cleaned last year3,000-3,500 homes delayed per dayOver 50% of fleet is beyond its useful life If one driver is out, over 1,000 homes may be delayed
6/15/2023
9 RiversideCA.gov17
WHAT’S BEEN DONE TO KEEP RATES LOW$1.3 Millionin Grant Funds $2 Million used from reserves EACH YEARsince FY 18/19 $11 Millionin General Fund Subsidy $23$26$29$32$35$38FY1718FY1819FY1920FY2021FY2122FY2223FY2324FY2425FY2526FY2627FY2728MillionsRevenue / Expenditure Comparison(Adopted Rates)ACTUAL EXPENDITURES PLUS ENCUMBRANCESACTUALS REVENUEPROJECTED EXPENDITURESPROJECTED REVENUE$4.4M RiversideCA.gov18
NEW PROJECTED REVENUES & EXPENDITURES$21$24$27$30$33$36$39FY1718FY1819FY1920FY2021FY2122FY2223FY2324FY2425FY2526FY2627FY2728MillionsRevenue / Expenditure ComparisonACTUAL EXPENDITURES PLUS ENCUMBRANCESACTUALS REVENUEPROJECTED EXPENDITURESPROJECTED REVENUEThe proposed new rates will:Achieve fiscal sustainabilityEnd General Fund subsidiesProvide Timely and Consistent Service $1.8M
6/15/2023
10 RiversideCA.gov19
PROPOSED RATE INCREASEProposed Solid Waste Rate IncreasesYears 2023-2027Proposed for considerationDate Rate IncreaseDollar IncreaseNovember 20237.5%* $2.42 / MonthJuly 20247.5%* $2.60 / MonthJuly 20256.5% $2.43 / MonthJuly 20266.5% $2.58 / MonthJuly 20276.5% $2.75 / Month*Inclusive of existing adopted rates, Residential rates only (No Commercial at this time) RiversideCA.gov20
COMPARISON BY CITY
NOTE: Only 26% of agencies surveyed include street sweeping services in solid waste rates –Riverside does. Not all cities are yet compliant with SB 1383. 6/15/2023
11 RiversideCA.gov21
PROVIDING QUALITY SERVICE
Reduce vehicle downtimeConsistent serviceBoost team morale•Purchasing 19 new vehiclesfor Solid Waste•Replace one-two vehicles each year•Hire a 5-person relief crew•Purchase new technology including in-route navigation RiversideCA.gov22
WHAT’S NEXTCity CouncilJune 27, 2023Mailing Notice to RatepayersJuly 2023City Council Public Hearing and Rate Consideration September 19, 2023 6/15/2023
12 RiversideCA.gov23
Strategic Priority 4 – Environmental StewardshipGoal 4.4– Implement measures and educate the community to responsibly manage goods, products, and services throughout their life cycle to achieve waste reduction outcomes.Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov24
RECOMMENDATIONS1.Receive a report on proposed changes to residentialtrash service rates; and2.Direct staff to prepare all documents necessary forpublic noticing and set a public hearing forrecommended residential solid waste rate increasesbeginning November 1, 2023 through June 30, 2028,on a date at least 45 days after mailing said notice inaccordance with Proposition 218.