5/30/2024
1 ADDING THE OPTION
OF A SMALLER
TRASH BIN
Cost, Revenue, and Tonnage Change
Estimates
June 13, 2024
SLIDE
1 1. Background, Objectives, & Assumptions
2. Estimated Costs
3. Estimated Revenue Impacts
4. Estimated Trash Waste Reduction
5. Recommendations
Pilot Program
Shared Service Alternative
AGENDA
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2 SLIDE
2 Background
⎻ 64,3000 residential solid waste service accounts
⎻ City crews service 42,300 of those accounts; Athens services the remaining 22,000
⎻ All residential accounts currently have 96-gallon bins for their solid waste collection service
⎻ The City is considering offering a 64-gallon service option at a reduced rate for low waste generating residents, including seniors
Background, Objectives, & Assumptions
SLIDE
3 Background, Objectives, & Assumptions
Objectives
⎻ Estimate potential costs associated with implementing a 64- gallon option for low waste generating residents, including seniors.
⎻ Estimate potential revenue impacts associated with the expected rates for the 64-gallon option.
⎻ Estimate potential trash waste reduction impacts associated with a 64-gallon option.
⎻ Suggest pilot programs or alternatives for consideration. 2 3
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3 SLIDE
4 Background, Objectives, & Assumptions
Assumptions
⎻ Low waste generating residents, including seniors, would be eligible for subscription to the new 64-gallon option.
⎻ New expenses would be paid for out of the City’s solid waste fund, and revenue reductions would impact the solid waste fund.
⎻ No adjustments to existing rates would be made to pay for new expenses or back-fill revenue reductions.
⎻ No modification to collection vehicles would be needed to service 64-gallon bins.
⎻ There would be no collection service cost savings associated with 64-gallon bins compared to 96-gallon bins, because the fixed costs of collection would remain the same and it takes the same amount of time to service both bin sizes.
SLIDE
5 Primary Cost: $75 per bin (x3 bins per
household)
⎻ Assumes City has space for storage of inventory at no additional costs
⎻ Assumes City will do its own assembly and delivery of bins at no additional cost
⎻ Analysis assumes these costs occur all at once
⎻ So costs are a function of how many customers opt to
subscribe to 64-gallon service AND whether the 64-gallon option includes all three waste streams
Estimated Costs
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4 SLIDE
6 Table 1: Estimated Expenses for 64-gallon Service for Trash, Recycling, and Organics Estimated Costs
Estimated New Bin Expenses
Est. Cost
Per Bin# of Bins# of
Accounts 15%
Subscription
10%
Subscription
5%
Subscription
$ 1,423,000$ 949,000$ 474,000
$75
126,90042,300City
$ 740,000$ 493,000$ 247,00066,00022,000Athens Table 2: Estimated Expenses for 64-gallon Service for Trash Only Estimated New Bin Expenses
Est. Cost
Per Bin# of Bins# of
Accounts 15%
Subscription
10%
Subscription
5%
Subscription
$ 474,000$ 316,000$ 158,000
$75
42,30042,300City
$ 247,000$ 164,000$ 82,00022,00022,000Athens Both tables assume that the City offers modest cost-of-service rate savings to customers rather than a linearly graduated (i.e., proportionate to number of gallons, or 33%) lower rate for the 64-gallon option.
SLIDE
7 Estimated Revenue Impacts
Table 3: 64-gallon Rate Compared to 96-gallon Rate for Comparison Communities 64-gallon Rate
Compared to 96-gallon
Rate
96-gallon Rate64-gallon RateMunicipality
-4%$ 27.78$ 26.61Anaheim
-11%$ 39.78$ 35.60Ontario (Municipally Operated)
-15%$ 35.02$ 29.73Chula Vista -16%$ 42.66$ 36.03Long Beach (Municipally Operated)
-17%$ 55.46$ 45.78Stockton
-33%$ 155.79$ 103.67Oakland
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8 Estimated Revenue Impacts
Table 4: Estimated Annual Revenue Reduction @ 5% Rate Reduction for 64-gallon Service Table 5: Estimated Annual Revenue Reduction @ 10% Rate Reduction for 64-gallon Service Table 6: Estimated Annual Revenue Reduction @ 15% Rate Reduction for 64-gallon Service Revenue Reduction
64-gallon Rate96-gallon Rate# of Accounts 15%
Subscription
10%
Subscription
5%
Subscription
$ 132,000$ 88,000$ 44,000
$ 32.98$ 34.72
42,300City
$ 69,000$ 46,000$ 23,00022,000Athens
Revenue Reduction
64-gallon Rate96-gallon Rate# of Accounts 15%
Subscription
10%
Subscription
5%
Subscription
$ 264,000$ 176,000$ 88,000
$ 31.25$ 34.72
42,300City
$ 137,000$ 92,000$ 46,00022,000Athens Revenue Reduction
64-gallon Rate96-gallon Rate# of Accounts 15%
Subscription
10%
Subscription
5%
Subscription
$ 397,000$ 264,000$ 132,000
$ 29.51$ 34.72
42,300City
$ 206,000$ 138,000$ 69,00022,000Athens SLIDE
9 Estimated Trash Waste Reduction
Chart 1: Bin Counts and Disposal Tonnages in El Cerrito -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
-
1,000
2,000
3,000
4,000
5,000
2017 2018 2019 2020 2021 2022 2023
Landfilled Tonnage
Residential Bin Counts
# 20-gal # 32-gal # 64-gal Landfilled Tons
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10 Estimated Trash Waste Reduction
Chart 2: Bin Counts and Disposal Tonnages in Hercules,
Pinole, Richmond, and San Pablo
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2017 2018 2019 2020 2021
Landfilled Tonnages
Bin Counts
20-gal 32-gal 64-gal 96-gal Landfill Recycling Organics SLIDE
11 Estimated Trash Waste Reduction
Conclusions
⎻ Low likelihood that implementation of 64-gallon option would result in meaningful reductions in landfilled tonnages. ⎻ Low likelihood that implementation of 64-gallon option would result in reductions in the cost of post-collection landfill disposal, recycling processing, and composting, for two reasons:
• Unlikely that trash waste tonnage will decrease, and
• Unless customers reduce the overall amount of waste
they generate across all three waste streams, any
changes in trash tonnages to landfill would result in
increased tonnage to recycling and composting facilities, which are generally at least as costly as landfilling.
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7 SLIDE
12 Recommendations
Pilot Program
⎻ Low-end estimates for capital costs for 64-gallon option only for trash bins exceed the current available balance projection for the solid waste fund.
⎻ However, City could afford to implement a pilot program to offer 64-gallon option to 5% of customers serviced by City (or to low waste generating seniors only), up to 2,100
customers.
⎻ At this number of customers, City could afford to offer up to a 15% rate reduction for 64-gallon option without depleting solid waste fund.
SLIDE
13 Recommendations: Pilot Program for 64-gallon Option
Table 7: Estimated Expenses, Revenue Reductions, and Available Fund Balance for Three-Steam 64-gallon Bin Pilot Program (5% of Residents) at 15% Rate Reduction FY 2026/27FY 2025/26FY 2024/25
$ 1,100$ 504,950$ 2,100,000Est. Starting Fund Balance $ 38,710,000$ 36,523,000$ 4,461,000Revenues $ 38,080,000$ 37,007,000$ 35,965,000Expenditures $ -$ -$ 71,200Pilot Program New Bin Costs $ 19,850$ 19,850$ 19,850Revenue Reduction $ 611,250$ 1,100$ 504,950Est. Ending Fund Balance FY 2026/27FY 2025/26FY 2024/25
$ 48,600$ 552,450$ 2,100,000Est. Starting Fund Balance $ 38,710,000$ 6,523,000$ 34,461,000Revenues $ 38,080,000$ 7,007,000$ 35,965,000Expenditures $ -$ -$ 23,700Pilot Program New Bin Costs $ 19,850$ 19,850$ 19,850Revenue Reduction $ 658,750$ 48,600$ 552,450Est. Ending Fund Balance Table 8: Estimated Expenses, Revenue Reductions, and Available Fund Balance for Trash Only 64-gallon Bin Pilot Program (5% of Residents) at 15% Rate Reduction 12 13
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14 Recommendations: Pilot Program for 64-gallon Option
Table 9: Example Timeline for Pilot Program Implementation Implementation Month
(Late Range)
Implementation Month
(Early Range)Implementation Steps
July 2024Pilot Design Development
August 2024Final Pilot Design
February 2025September 2024Printing and Mailing of Outreach and Education March 2025October 2024Customers Start Signing Up For Pilot Participation April 2025November 2024Final Preparations for Pilot Implementation and Bin Delivery
June 2025January 2025Deliver Bins and Start Pilot Program SLIDE
15 Recommendations: Shared Service Alternative
Provide ratepayers the chance to opt out
of collection service for trash, recycling,
and/or organics service if they can
document that they meet a set of criteria,
such as:
⎻ Prove that their waste diversion is equal to or greater than what it would be with City collection services,
⎻ Prove that their waste diversion and disposal is completed with equal to or less environmental impact than with City collection services, and
⎻ Prove that their waste diversion and disposal methods do not constitute a nuisance as defined in the City’s Municipal Code.
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16 Recommendations: Shared Service Alternative
In practical terms, this might mean that
customers fall under one or more of these
scenarios:
⎻ They’ll be consensually sharing a waste bin or bins with another City customer.
⎻ They generate little waste material at their City address, already receive waste collection service at a second
residence or business, and will be hauling their waste to that second residence or business for collection with no
additional greenhouse gases generated.
⎻ They generate little waste material and will schedule a bulky pick-up or self-haul if they accrue enough waste material to warrant off-site handling.
ADDING THE OPTION
OF A SMALLER
TRASH BIN
Cost, Revenue, and Tonnage
Change Estimates
June 13, 2024
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