Item Coversheet

Item Number 12.

  

City Council 
Staff Report


Subject:Recology Auburn Placer Yearly Cost of Living Adjustment


Date:May 11, 2021


Submitted By:Justin Nartker, Director of Public Services


Department:Public Services

Staff Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin of Intent to Amend the Solid Waste Collection Service Rates Within the Incorporated Limits of the City of Rocklin and Setting a Public Hearing Thereon.
BACKGROUND:

Recology Auburn Placer (Recology) has a Franchise Agreement for Solid Waste Handling Services with the City of Rocklin that allows for a yearly Cost of Living Adjustment (Resolution 2009-81).  Recology has approached the City with a request for a Cost of Living Adjustment (COLA.) that consists of a Cost of Living Increase average of 1.7% (Exhibit A). 

 

In addition, landfill costs ("tipping fees") are structured to reflect current and future financial needs and the actual operating costs for the Material Recovery Facility (MRF)/landfill are included, or passed through, in the monthly billings to the customers of Recology for waste disposal services. As such, the passage of California Senate Bill 1383 (SB 1383) will increase recycling requirements and add organic recycling, such as the separate recycling of food waste, effective January 1, 2022.

 

In order to comply with these regulations, Western Placer Waste Management Authority (WPMA) is currently going through a selection process for a new landfill operator. It is anticipated that the current landfill cost will increase approximately 20.55% in order to prepare for the SB 1383 requirements and to operate this high efficiency material recovery facility.

 

Recology has been Rocklin’s solid waste provider since 1979.  They operate under a franchise agreement originally granted by the City in 1979 and extended in 1999.  In 2009 Recology was granted a new and revised franchise agreement in which they may apply for a yearly COLA rate adjustment per a specified formula.  There are procedures necessary for a solid waste fee increase in order to comply with Proposition 218.  

 

Refuse collection services are not subject to voter approval, but are subject to the notice, hearing and majority protest procedures set forth in Article XIIID, section 6(a).  Typically, a hearing has been held on an annual basis resulting in a small increase to rates for the Rocklin residents.

 

Recology rates compare favorably with neighboring communities in our region, especially when considering the expanded service Rocklin residents receive.  Beyond the normal weekly trash service, Rocklin residents receive green waste pickup; street sweeping; curbside e-waste recycling; Spring cleanup; cardboard recycling and dead animal pickup; all of which are included in the monthly rate.

 

Collection Rates

 

 

Container

Base Rate (Monthly)

Disposal

Franchise Fee

Total

+ or -

Current Rate

1 - 32 Gallon Can

7.49

5.54

1.45

14.48

 

Proposed Rate*

 

7.62

6.67

1.59

15.88

+1.40

Current Rate

Toter Total

12.91

11.07

2.66

26.64

 

Proposed Rate*

 

13.13

13.35

2.94

29.42

+2.78

Current Rate

Unlimited Toter

17.68

14.24

3.55

35.47

 

Proposed Rate*

 

17.98

17.16

3.90

39.04

+3.57

Current Rate

Sr. Unlimited Toter

9.31

14.24

2.62

26.17

 

Proposed Rate*

 

9.47

17.16

2.96

29.59

+3.42

Current Rate

1 Yd - 1 x Week

65.12

23.73

9.87

98.72

 

Proposed Rate*

 

66.23

28.60

10.54

105.37

+6.65

Current Rate

1 Yd - 4 x Week

193.29

94.90

32.02

320.21

 

Proposed Rate*

 

196.58

114.40

34.55

345.53

+12.93

Current Rate

4 Yd - 1 x Week

193.29

94.90

32.02

320.21

 

Proposed Rate*

 

196.58

114.40

34.55

345.53

+12.93

 

* Cost projections are based on the Cost of Living Increase at an average of 1.7% and the landfill rate increase identified in the Disposal portion of the fee. Rates provided above are a sampling of the multiple rates provided within the Franchise Agreement.


Fiscal Impact:

This will impact the average end user approximately 1.7% in the C.O.L.A. and up to 20.55% for the landfill rate increase on their current monthly service bill and has no direct impact to the City.  

ATTACHMENTS:
Description
Staff Report - Exhibit A
Resolution A
Resolution A - Exhibit A
This Staff Report has been reviewed by the City Attorney for legal sufficiency and by the City Manager for content.