Item Coversheet

Item Number 10.

  

City Council 
Staff Report


Subject:Setting a Public Hearing Regarding the Proposed Amended Solid Waste Collection Service Rates


Date:April 26, 2022


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 Time and Place for a Public Hearing Thereon


BACKGROUND:

Recology Auburn Placer (Recology) has a Franchise Agreement for Solid Waste Handling Services with the City 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) of 11.6%. The Franchise Agreement with the City of Rocklin has a maximum yearly increase of 4.0% (see Exhibit A to the Resolution). The remaining 7.6% would be rolled into the following years.  

 

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 the California Constitution, Article XIIID, section 6(a). Typically, a hearing has been held on an annual basis resulting in a small increase to rates.

 

Recology's rates compare favorably with neighboring communities in the region, especially when considering the expanded services Rocklin receives. Beyond the normal weekly trash service, Rocklin customers receive green waste pickup; street sweeping; curbside e-waste recycling; Spring cleanup; cardboard recycling and dead animal pickup.

 

Collection Rates

 

 

Container

Base Rate (Monthly)

Disposal

Franchise Fee

Total

+ or -

Current Rate

1 - 32 Gallon Can

7.62

6.67

1.59

15.88

 

Proposed Rate*

 

7.92

6.67

1.62

16.21

+0.33

Current Rate

Toter Total

13.13

13.35

2.94

29.42

 

Proposed Rate*

 

13.66

13.35

3.00

30.01

+0.59

Current Rate

Unlimited Toter

17.98

17.16

3.90

39.04

 

Proposed Rate*

 

17.70

17.16

3.98

39.84

+0.80

Current Rate

Sr. Unlimited Toter

9.47

17.16

2.96

29.59

 

Proposed Rate*

 

9.85

17.16

3.00

30.01

+0.42

Current Rate

1 Yd - 1 x Week

66.23

28.60

10.54

105.37

 

Proposed Rate*

 

68.88

28.60

10.83

108.31

+2.94

Current Rate

1 Yd - 4 x Week

196.58

114.40

34.55

345.53

 

Proposed Rate*

 

204.44

114.40

35.43

354.27

+8.74

Current Rate

4 Yd - 1 x Week

196.58

114.40

34.55

345.53

 

Proposed Rate*

 

204.44

114.40

35.43

354.27

+8.74

 

* Cost projections are based on the Cost of Living Increase at 4.0%. Rates provided above are a sampling of the multiple rates provided within the Franchise Agreement.

 

It should be noted that the City is currently negotiating with Recology regarding adjustments that need to be made to the Franchise Agreement in order to be compliant with the requirements of SB1383, which are not included in this COLA increase. Once negotiations have been completed, any changes will be brought forward to the City Council for consideration.


Fiscal Impact:

While the COLA Adjustment for the contract is 4.0%, this will impact the average residential customer by approximately 2.15%.

ATTACHMENTS:
Description
Resolution
Resolution Exhibit A
This Staff Report has been reviewed by the City Attorney for legal sufficiency and by the City Manager for content.
The Finance Department has reviewed this staff report and certifies that budgeted funds are available, unless a budget amendment is being requested as part of this action item.