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1 RiversideCA.gov1
RiversideCA.gov
City CouncilJune 10, 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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5 RiversideCA.gov9
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 HISTORYFY20/21 – CPI + 1% extraordinary adjustmentFY21/22 – CPI + 2% extraordinary adjustmentFY22/23 – 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%$128.352021/22CPI+1%$140.122022/23CPI$151.042023/24CPI$154.592024/259 10 5/22/2025
6 RiversideCA.gov11
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 IMPACT•Refuse Fund reserves of $6 million will offset the Fund’s projectedFY24/25 deficit of $3.3 million•Fund is projected to begin financial recovery before the end ofthis commercial rate plan•Proposed commercial rate plan projected to generate anadditional $160,000 in City administrative fee revenue inFY2025/26•Franchise fee payments to the City’s General Fund forcommercial solid waste services projected to increase byapproximately $134,000 in FY2025/26 RiversideCA.gov14
Strategic Priority 4 – Environmental StewardshipStrategic Priority 5 – High Performing GovernmentCross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATIONSThat the City Council:1. Conduct a public hearing to consider all oral comments andwritten protests to the proposed rate increase for commercialrefuse rates through June 30, 2028; and2. If a majority protest does not exist, adopt a Resolutionapproving the commercial rate structure from July 1, 2025 throughJune 30, 2028.15