FIVE-YEAR SOLID WASTE RATE STUDY
2023-2028
PUBLIC HEARING AND RATE ADOPTION
WORKING TO DELIVER A CLEAN, SAFE, & SUSTAINABLE SANTA MONICA ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
PURPOSE OF
TONIGHT’S MEETING
A. Hold a Public Hearing
B. Adopt 2023-2028
Solid Waste Rates
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
RESOURCE RECOVERY &
RECYCLING (RRR)
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
CLEAN, SAFE, AND SUSTAINABLE SANTA MONICA
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
2.28.2023 STUDY SESSION RECAP
Option Proposed
Annual
Rate
Increase
Additional
Staffing
Level
Anticipated Outcome
One – Enhanced
Clean and Safe
Services
(RECOMMENDED)
11% 15.12 FTE Enhanced illegal dumping collection
Proactive weekly alley cleanups
Quarterly community cleanups
Two – Right-Size
Basic Services
10.2% 8.12 FTE Right-size existing basic services
NO enhanced illegal dumping collection
NO quarterly community cleanup program
Alternative (NOT
RECOMMENDED)
9% 0 FTE Staffing shortages persist
Missed or delayed collections continue
City’s cleanliness degrades
Alternative (NOT
RECOMMENDED)
0% 0 FTE RRR Fund depletes all funds in FY 2024-25
Unable to continue providing services
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
NEW RATES ALLOW SANTA MONICA TO:
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
PROPOSED RATES OF TYPICAL SERVICES
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
RATE COMPARISONS BY JURISDICTION
(Option 1: Enhanced Clean and Safe)
$-
$200
$400
$600
$800
$1,000
$1,200
$46.37 $35.89 $37.68 $53.49 $36.58 $39.54 $37.60
$59.83 $56.68 $46.85 $41.72 $36.32 $54.82 $38.93
$220.32
$399.30 $368.29 $372.40
$548.38 $588.18
$314.78 $363.29
$510.20
$736.58 $744.80
$1,023.02 $975.33
Single-Family
65-Gallon 1x
Weekly
Single-Family
95-Gallon 1x
Weekly
Commercial 2-
Cubic-Yards
Once Weekly
Multi-Family 2-
Cubic-Yard 1x
Weekly
Single-Family
65-Gallon
1x Weekly
Single-Family
95-Gallon
1x Weekly
Commercial
2-Cubic-Yard
1x Weekly
Multi-Family
2-Cubic-Yard
2x Weekly
$154.69
Santa
Monica
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
NEW AND IMPROVED
PROGRAMS FUNDED BY NEW RATES
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
One of the most requested 311 services in
the City
New proposed rates would allow RRR to
hire more workers and expand the BIID
team
Intended Outcomes:
Cleaner, greener city
Less strain on 311 system
IMPROVED: BULKY ITEM
ILLEGAL DUMPING (BIID)
RESPONSE TEAM
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
Make a difference in your own
neighborhood!
Supplies and hauling provided
Intended Outcomes:
Volunteerism
Community-building
NEW: COMMUNITY CLEANUP
PROGAM
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
City has 444 California Alternate Rates for Energy (CARE) customers 64% of CARE customers: single-family and smaller multi-family PROPOSED:
CARE customers would qualify for water and solid waste rate discounts Water discount: $1 per hundred cubic feet in Tier 1 rate Solid waste discount: 10% discount
NEW: SOLID WASTE RATE ASSISTANCE PROGRAM
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
Neighborhood group
community meetings
Chamber, SMTT, SMPC, and
BID meetings
Commission on
Sustainability,
Environmental Justice, and
the Environment meetings
Santa Monica Daily Press
RATE STUDY PUBLIC OUTREACH
Prop 218 public notice mailed to
every home and business
SaMoNews e-newsletter
Buy Local e-newsletter
santamonica.gov/solid-waste-rates
[email protected]
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
PURPOSE OF
TONIGHT’S MEETING
A. Hold a Public Hearing
B. Adopt 2023-2028
Solid Waste Rates
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
BACKUP SLIDES
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
Neighborhood group
community meetings
Chamber, SMTT, SMPC, and
BID meetings
Commission on
Sustainability,
Environmental Justice, and
the Environment meetings
Santa Monica Daily Press
RATE STUDY PUBLIC OUTREACH
Prop 218 public notice mailed to
every home and business
SaMoNews e-newsletter
Buy Local e-newsletter
santamonica.gov/solid-waste-rates
[email protected]
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
RRR
PROPOSED RATE ADJUSTMENTS
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
$6.7 million in additional revenues
$3.9 million in additional expenditures, supporting the hiring of sanitation workers, trucks, and capital assets Create 18 new jobs (15.12 net FTE)
THE PROPOSED NEW RATES WILL LEAD TO:
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
PUBLIC OUTREACH
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
WHERE DOES RRR REVENUES COME FROM?
Solid Waste
Utility Billing
92%
Fee-Based Services
5%
Other
3%
(0% Subsidy from General Fund)
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
WHAT DOES RRR SPEND MONEY ON?
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
HISTORIC SOLID WASTE RATE INCREASES
Year Single-Family
Customers
Multi-Family
Customers
Commercial
Customers
2014-15 3.85% 1% 7.25%
2015-16 3.85% 1% 7.25%
2016-17 3.85% 1% 7.25%
2017-18 CPI-2.5% CPI-2.5% CPI-2.5%
2018-19 CPI-3.7% CPI-3.7% CPI-3.7%
2019-20 CPI-2.6% CPI-2.6% CPI-2.6%
2020-21 - COVID 0% 0% 0%
2021-22 - COVID 0% 0% 0%
2022-23 - COVID 0% 0% 0%
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
ACHIEVING CLEAN, SAFE, AND SUSTAINABLE SERVICE
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
Right-size solid waste and
recyclable collection staff levels
Right-size sweeping services
SB 1383 mandatory compliance and
Zero Waste by 2030
implementation
Restore a fully staffed Bulky Item
Illegal Dumping (BIID) response
team for proactive alley cleanup
Create a NEW volunteer-driven
Community Cleanup Program
ENHANCED CLEAN & SAFE
SERVICES
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
PROPOSED SAMPLE RATES
Proposed Rates of Typical Services
Customer Type Current
Monthly
Proposed FY
23-24 Monthly
Proposed FY
24-25 Monthly
Proposed FY
25-26 Monthly
Proposed FY
26-27 Monthly
Proposed FY
27-28 Monthly
Single-Family
One (1) 65-gallon 1x
per week $41.78 $46.37 +$4.60 11%
$51.47
+$5.10 11%
$57.13
+$5.66 11%
$63.42
+$6.29 11%
$70.39
+$6.98 11%
One (1) 95-gallon 1x
per week $53.90 $59.83 +$5.93 11%
$66.41
+$6.58 11%
$73.71
+$7.30 11%
$81.82
+$8.11 11%
$90.82
+$9.00 11%
Multi-Family
Four-Unit Apartment
Two 95-gallon 1x per
week
$99.28 $119.65
+$20.37 21%
$132.81
+$13.16 11%
$147.42
+$14.61 11%
$163.64
+$16.22 11%
$181.64
+$18.00 11%
Ten-Unit Apartment
One 300-gallon 2x per
week
$222.58 $275.00
+$52.42 24%
$305.25
+$30.25 11%
$338.83
+$33.58 11%
$376.10
+$37.27 11%
$417.47
+$41.37 11%
Commercial
Small Retail
One 95-gallon
1x/week
$88.21 $57.13
-$31.09 -35%
$63.71
+$6.58 11%
$71.01
+$7.30 11%
$79.12
+$8.11 11%
$88.12
+$9.00 11%
Mid-Size Retail
One 2-cubic-yard 1x
per week
$131.34 $154.69
+$23.36 18%
$172.01
+$17.32 11%
$191.23
+$19.22 11%
$212.56
+$21.33 11%
$236.23
+$23.68 11%
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
CITY UTILITY BILL
• Water Charges
• Sewer Charges
• Waste
Management/ RRR
Charges
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
$119.65
$11.86 or
Before After 6.6%
$192.53
$119.65
$119.65
EXAMPLE: SINGLE FAMILY HOME
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
$544.60
$80.22 or
Before After 4.5%
$1,854.81
$544.60
$544.60
Livable Per Unit Charge $9.61 12.0 $115.32
EXAMPLE: 12-UNIT MULTI-FAMILY
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
$114.25
$62.17
Before After or -16%
$336.60
$114.25
$114.25
.75 Inch Water Meter $105.47 1.0 $105.47
EXAMPLE: SMALL BUSINESS
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
Even with no new added services or staffing, a
minimum 9% annual increase would still be
required to stabilize RRR Fund and reverse
financial structural deficit
Staff does not recommend this:
- Staffing shortages are unsustainable
- Will lead to continued degradation of
service and cleanliness
NO INCREASE IS NOT AN
OPTION
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
$(65,000,000)
$(45,000,000)
$(25,000,000)
$(5,000,000)
$15,000,000
$35,000,000
$55,000,000
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Revenues
Expenses
Fiscal Year-end
Reserves
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
RRR FUND WILL BE DEPLETED IN FY 2024-25
IF RATES ARE NOT INCREASED
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
PROPOSED INCREASE AFTER THREE-YEAR FREEZE
Year Single-Family
Customers
Multi-Family
Customers
Commercial
Customers
2018-19 CPI-3.7% CPI-3.7% CPI-3.7%
2019-20 CPI-2.6% CPI-2.6% CPI-2.6%
2020-21 – COVID 0% 0% 0%
2021-22 – COVID 0% 0% 0%
2022-23 – COVID 0% 0% 0%
2023-24 – Use Reserve 11% Restructure Restructure
2024-25 - Use Reserve 11% 11% 11%
2025-26 - Use Reserve 11% 11% 11%
2026-27 11% 11% 11%
2027-28 11% 11% 11%
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
ANNUAL INCREASE WITHOUT THREE-YEAR FREEZE
Year Single-Family
Customers
Multi-Family
Customers
Commercial
Customers
2018-19 CPI-3.7% CPI-3.7% CPI-3.7%
2019-20 CPI-2.6% CPI-2.6% CPI-2.6%
2020-21 – COVID 6.75% 6.75% 6.75%
2021-22 – COVID 6.75% 6.75% 6.75%
2022-23 – COVID 6.75% 6.75% 6.75%
2023-24 6.75% 6.75% 6.75%
2024-25 6.75% 6.75% 6.75%
2025-26 6.75% 6.75% 6.75%
2026-27 6.75% 6.75% 6.75%
2027-28 6.75% 6.75% 6.75%
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
Rate difference for Option One vs. Option Two is minimal ($2 per month for many customers)
Compare favorably with other cities
Protect renters and rent-controlled buildings: Multifamily rates are still lower than other cities Protect businesses and economic recovery: Commercial
rates are still among the lowest in LA County
Better service, faster 311 response time, weekly alley cleanup, cleaner city, promotes volunteerism and sense
of community
COMMUNITY BENEFITS
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
WAYS TO KEEP RATES DOWN
Customer can choose to right-size
service subscription level:
[email protected]
City can create a solid waste rate
discount program
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
Jan - Feb
Sustainability
Commission,
Business
Improvement
Districts,
Chamber,
Pier
Feb - Apr
Study
Session,
Neighborhood
Groups,
Sustainability
Commission
May – Jun
Prop 218
Notices
June 2023
Public
Hearing
Aug 2023
New
Rates
Public Outreach
ROBUST COMMUNITY OUTREACH
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
ANTICIPATED OUTCOMES
Hire more sanitation workers
Cleaner streets and alleys
Slowly rebuild reserves from 2026-2028
Proposed rate increases still protect
renters, rent-controlled building owners, and small businesses Santa Monica’s rates still fare favorably
compared with other LA County cities
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
FOR MORE INFORMATION:
santamonica.gov/solid-waste-rates
QUESTIONS:
[email protected]
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
THANK YOU
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
PROPOSED OPTIONS: SAMPLE RATES
Sample Rates FY 2023
Customer Type Option One: Enhanced
Clean & Safe Services
Option Two: Right-Size
Basic Services
RECOMMENDED
11% Per Year 10.2% Per Year
Single-Family Home $5.93/Month $5.50/Month
Multi-Family Unit* $3 - $4.50 Per
Unit/Month
$2.80 - $4 Per
Unit/Month
Commercial*
(Small Retail) $7 - $9/Month* $6 - $8/Month*
Commercial*
(Mid-Sized Retail) $17 - $24/Month* $16 - $21/Month*
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
RATE COMPARISONS BY JURISDICTION
(Option 1: Enhanced Clean and Safe)
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
RRR EXPENSES/REVENUES (FY 22-23)
Labor
33% Vehicles & Capital
32%
Post-Collection
Transportation,
Disposal, and
Recycling
23%
General Fund
Reimbursement
8%
Supplies and
Expenses
4%
EXPENDITURES REVENUES
Solid Waste Utility
Billing…
Fee-Based
Services 5%
Other
3%
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
RRR EXPENSES/REVENUES (FY 22-23)
Solid Waste
Utility Billing
92%
Fee-Based Services
5%
Other
3% Post Collection Transportation,
Disposal & Recycling
23%
General Fund
Reimbursement
8%
Supplies
& Expenses
4%
Labor
33%
Vehicles &
Capital
32%
EXPENDITURES REVENUES
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY26/27 FY 27/28
Collection
Operation
Costs
Post-Collection
Recycling and
Disposal Costs
Property,
Overhead and
Shared Costs
Compliance
Programs
Costs
Trucks and
Equipment
Capital Costs
Grand Total
Costs
5-YEAR EXPENSE PROJECTION: OPTION 1
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
17,079,520 18,038,251 18,841,735 19,414,774 20,100,146 20,751,515 9,632,260 10,211,111 11,080,094 11,996,900 12,963,727 13,988,766 4,705,650
5,825,138 5,538,435 5,654,268 5,769,384 5,867,027
1,616,237 1,697,049 1,781,901 1,870,996 1,964,546
7,887,299
5,356,420 5,526,106 4,834,973 4,936,893 5,040,599
39,304,729
41,047,157
42,683,419 43,682,815
45,641,145
47,612,453
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY26/27 FY 27/28
Collection Operation
Costs
Post-Collection
Recycling and Disposal
Costs
Property, Overhead
and Shared Costs
Compliance Programs
Costs
Trucks and Equipment
Capital Costs
Grand Total Costs
5-YEAR EXPENSE PROJECTION: OPTION 1
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
RATE OPTION COMPARISON
Option One: Clean & Safe Option Two: Basic
BIID Response Team +
Community Cleanup Events
SB 1383 compliance +
Council’s Zero Waste 2030
2030
Streets + alleys + bike lanes
More organics routes
Add 15.12 Full-Time Positions
11% increase per year
SB 1383 compliance +
Council’s Zero Waste 2030
Streets + alleys + bike lanes
More organics routes
Add 8.12 Full-Time Positions
10.2% increase per year
VS
Clean & Safe
Staffing
Collection
Sweeping
Rate
Zero Waste
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
NO:
Restoring a fully staffed Bulky
Item Illegal Dumping (BIID)
response team for proactive alley
cleanup
Creating a NEW volunteer-driven
Community Cleanup Program
(CCP)
OPTION TWO: RIGHT-SIZE
BASIC SERVICE
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
OPTION 2 (RIGHT SIZE) SAMPLE RATES
Proposed Rates of Typical Services for Option Two
Customer Type Current
Monthly
Proposed FY
23-24 Monthly
Proposed FY
24-25 Monthly
Proposed FY
25-26 Monthly
Proposed FY
26-27 Monthly
Proposed FY
27-28 Monthly
Single-Family
One (1) 65-gallon 1x
per week $41.78 $46.04
+$4.26 10.2%
$50.73
+$4.70 10.2%
$55.91
+$5.18 10.2%
$61.61
+$5.70 10.2%
$67.89
+$6.29 10.2%
One (1) 95-gallon 1x
per week $53.90 $59.39
+$5.50 10.2%
$65.45
+$6.06 10.2%
$72.13
+$6.68 10.2%
$79.48
+$7.36 10.2%
$87.59
+$8.10 10.2%
Multi-Family
Four-Unit Apartment
Two 95-gallon 1x per
week
$99.28 $118.78
+$19.50 19.6%
$130.90
+$12.12 10.2%
$144.25
+$13.35 10.2%
$158.96
+$14.71 10.2%
$175.17
+$16.21 10.2%
Ten-Unit Apartment
One 300-gallon 2x per
week
$222.58 $272.30
+$49.72 22%
$300.05
+$28.05 10.2%
$331.26
+$30.91 10.2%
$365.32
+$34.06 10.2%
$402.86
+$37.54 10.2%
Commercial
Small Retail
One 95-gallon
1x/week
$88.21 $56.69
-$31.52 -35.7%
$62.75
+$6.06 10.7%
$69.43
+$6.68 10.6%
$76.78
+$7.36 10.6%
$84.89
+$8.10 10.6%
Mid-Size Retail
One 2-cubic-yard 1x
per week
$131.34 $154.69
+$23.36 17.8%
$170.75
+$16.06 10.4%
$188.44
+$17.69 10.4%
$207.93
+$19.50 10.3%
$229.42
+$21.49 10.3%
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
RATE COMPARISONS BY JURISDICTION
(Option 1: Enhanced Clean and Safe)
$-
$200
$400
$600
$800
$1,000
$1,200
Single-Family
65-Gallon 1x
Weekly
Single-Family
95-Gallon 1x
Weekly
Commercial 2-
Cubic-Yards
Once Weekly
Multi-Family 2-
Cubic-Yard 2x
Weekly
Single-Family
65-Gallon
1x Weekly
Single-Family
95-Gallon
1x Weekly
Commercial
2-Cubic-Yard
1x Weekly
Multi-Family
2-Cubic-Yard
1x Weekly
Santa
Monica
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023
PURPOSE OF TONIGHT’S
MEETING
Provide Direction On:
A. Proposed Rate Adjustment Options
B. Proposed Establishment of a
Solid Waste Rate Discount
Program
ITEM 12.B.
JUNE 13, 2023
ITEM 12.B.
JUNE 13, 2023