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1 RiversideCA.gov1
RiversideCA.gov
City CouncilApril 8, 2025COMMERCIAL SOLID WASTE SERVICESPROPOSED 3-YEAR RATE PLANPublic Works Department RiversideCA.gov2
BACKGROUND•June 2020 – Council approved commercial rates through June 2025•Proposed new commercial rate plan through June 2028•Non-exclusive franchise commercial service agreements end June 2028 1 2
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2 RiversideCA.gov3
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, 2025 RiversideCA.gov4
BUILDING BLOCKS OF A TRASH RATE
Franchise FeeCity Admin Fee3
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3 RiversideCA.gov5
RISING COSTSCHINA’S RECYCLING BAN
COUNTY LANDFILL FEES
GREENWASTE PROCESSING LEGISLATION
ORGANIC / FOOD WASTE REGSTRUCKS & BINS
RiversideCA.gov6
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) 5 6
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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 MANDATESResulted 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.gov8
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 7 8
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COMMERCIAL CUSTOMER SERVICE REQUIREMENTS•All commercial customers must have a trash container•Commercial customers may qualify for waivers for recycling, 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.gov10
COMMERCIAL MONTHLY TRASH RATE HISTORY*FY20/21 – CPI + 1% extraordinary adjustmentFY21/22 – CPI + 2% extraordinary adjustment*FY22/23 – CPI + 1% extraordinary adjustmentHelped contract haulers keep pace with higher operating costs driven bythe changing recycling market, rising labor costs and California regulationsRate AdjustmentTrash RateFiscal YearCPI$104.252015/16CPI$108.452016/17CPI$108.452017/18CPI$113.952018/19CPI$118.202019/20CPI+1%$123.652020/21CPI+2%$128.352021/22*CPI+1%$140.122022/23*CPI$151.042023/24CPI$154.592024/259 10 3/27/2025
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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%$14.90$358.71$343.812 cubic yardsMixed Organics(food waste + green waste)CPICPI + 1%N/A$137.98N/A95 gallonsFood Wastenew rateCPICPI + 1%N/A$355.98N/A2 cubic yards RiversideCA.gov12
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) 11 12
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FISCAL IMPACTRefuse Fund began the fiscal year with fund reserves of $6 million, which will be usedto offset the Fund’s projected FY2024/25 deficit of $3.3 million. The Refuse Fund isprojected to begin financial recovery before the end of this commercial rate plan,with an increase in the commercial rate City administrative fee helping to close thegap.The proposed commercial solid waste rate plan is projected to generate anadditional approximately $160,000 in City administrative fee revenue for the SolidWaste (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 approximately $134,000 in FY2025/26. Theproposed commercial rates would increase franchise fees by the correspondingamount each year.
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Strategic Priority 4 – Environmental StewardshipStrategic Priority 5 – High Performing GovernmentCross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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8 RiversideCA.gov15
RECOMMENDATIONSThat the City Council:1. Receive a report on proposed changes to commercial solidwaste rates; and2. Direct the City Manager to prepare all documents necessary forpublic noticing of the rate proposal and set a public hearing forJune 10, 2025 at 3:00 p.m., with new rates effective July 1, 2025.15