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1 RiversideCA.gov1
RiversideCA.gov
Finance CommitteeMarch 12, 2025COMMERCIAL SOLID WASTE SERVICESPROPOSED 3-YEAR RATE PLANPublic Works Department RiversideCA.gov2
THE RATES PROCESSChamber of Commerce EngagementFebruary 2025Finance CommitteeMar. 12, 2025City Council sets hearing and Prop 218 notices go out April 8, 2025City Council Public Hearing and Rate Consideration June 10, 20251 2 2/28/2025
2 RiversideCA.gov3
NEW FIVE-YEAR RESIDENTIAL RATE PLANSNEW THREE-YEAR COMMERCIAL RATE PLAN +$5.64 per month for weekly 3-yard trash container serviceProposed Year 1 Increase of CPI + 1% +$5.56 per month for weekly 2-yard recycle container service+$7.28 per month for weekly 2-yard green waste container serviceAdding new rate for food waste only container service & +$14.90 per month for weekly 2-yard mixed organics container service (green waste + food waste) RiversideCA.gov4
RISING COSTSCHINA’S RECYCLING BAN
COUNTY LANDFILL FEES
GREENWASTE PROCESSING LEGISLATION
ORGANIC / FOOD WASTE REGSTRUCKS & BINS
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THE WHY•Senate Bill 1383 - California is the only State to require:a) Organics recycling for all wasteb) Edible food recovery programsc) Food waste diversion programsCALIFORNIA SENATE BILL 1383 MANDATES Resulted in increased operating costs due to:a) CalRecycle reporting requirementsb) Route audits / Environmental Compliance inspectionsc) Outreach & educationd) Compostinge) Implementation of edible food recovery and food waste diversion programs“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 RiversideCA.gov6
THE WHY•China no longer accepts recycled goods• Recycling is mandatory in CaliforniaCHINA NATIONAL SWORD POLICY WASTEWATER SUSTAINABILITY PROJECT•New tip fees for Agua Mansa to deliver food slurry/cake and feedstock materials to Riverside WCQP•Target implementation - 2025•Financial impacts unknown 5 6
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4 RiversideCA.gov7
COMMERCIAL CUSTOMER SERVICE REQUIREMENTS•All commercial customers must have trash and recycling containers•Certain commercial customers may qualify for waivers for green waste and food scraps containers ifoGreen waste recycling is provided by a landscaper or other 3rdpartyoLimited amount of green waste and food scraps (organics) generatedDisposal of 2 or more cubic yards of trash per week andless than 20 gallons of organics waste per week; orDisposal of less than 2 cubic yards of trash per week andless than 10 gallons of organics waste per weekoSpace constraint that cannot be resolved by downsizing containers or other solutions RiversideCA.gov8
COMMERCIAL MONTHLY TRASH RATE HISTORY*FY21/22 – CPI + 2% extraordinary adjustment *FY22/23 – CPI + 1% extraordinary adjustment Helped contract haulers keep pace with changes in the recycling market, higher operatingcosts driven by rising labor costs and California regulationsRate AdjustmentTrash RateFiscal YearCPI$104.252015/16CPI$108.452016/17CPI$108.452017/18CPI$113.952018/19CPI$118.202019/20CPI$123.652020/21CPI+2%$128.352021/22*CPI+1%$140.122022/23*CPI$151.042023/24CPI$154.592024/257 8 2/28/2025
5 RiversideCA.gov9
PROPOSED 3-YEAR RATE INCREASESYear 3 RateYear 2 RateAmount of IncreaseYear 1 Proposed New Monthly Rate for 1/wk Svc(CPI of 2.94%+ 1%)Current Monthly Rate for 1/week SvcCommon Container SizesServiceCPICPI + 1%$5.64$160.23$154.593 cubic yardsTrashCPICPI + 1%$5.56$141.91$136.352 cubic yardsRecyclingCPICPI + 1%$7.11$177.43$170.324 cubic yardsCPICPI + 1%$7.28$204.75$197.472 cubic yardsGreen WasteCPICPI + 1%N/A$137.98N/A95 gallonsFood Wastenew rateCPICPI + 1%N/A$355.98N/A2 cubic yardsCPICPI + 1%$14.90$358.71$343.812 cubic yardsMixed Organics(food waste + green waste) RiversideCA.gov10
COMMERCIAL MONTHLY TRASH RATE COMPARISON BY CITY143.17 154.59 160.23 169.78 173.02 176.45 189.98 190.93 191.93 227.98 230.63 251.60 NorcoRiverside (current rate)Riverside (proposed increase CPI + 1%)CoronaMenifeeBanningMoreno ValleyMurrietaJurupa ValleyPerrisLake ElsinoreHemetRates for 3 Cubic Yard Trash Container Serviced 1 Time Per Week(most common) 9 10
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FISCAL IMPACTThere is no immediate impact to receiving this report. However, therecommendations that accompany this report could result in additional fiscalimpact depending on the outcome of the recommended actions.The proposed commercial solid waste rate plan is projected to generate anadditional $160,000 in City administrative fee revenue for the Solid Waste(Refuse) Fund in FY2025/26. The proposed commercial rates would increasethe City administrative fee by the corresponding amount each year.Franchise fee payments to the City’s General Fund for commercial solid wasteservices are projected to increase by $134,000 in FY2025/26. The proposedcommercial rates would increase franchise fees by the corresponding amounteach year.
RiversideCA.gov12
Strategic Priority 4 – Environmental StewardshipStrategic Priority 5 – High Performing GovernmentCross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATIONSThat the Finance Committee:1. Receive a report on and provide input on proposed changes tocommercial solid waste rates through June 30, 2028; and2. Recommend that the City Council sets a public hearing forproposed commercial solid waste rates.13