For Utilities Commission Meeting [May 18, 2021]
TO: Honorable Utilities Commission Members
APPROVAL: Thomas J. Crowley, P.E., Utilities Manager
FROM: Amy Crow, Administrative Analyst
Title
Request Utilities Commission to Recommend that City Council Approve Municipal Solid Waste Collection, Recycling and Disposal Service Rates for Fiscal Year 2021/2022, Effective July 1, 2021.
(ACTION)
Body
BACKGROUND:
In April 1996, Council approved a franchise agreement for trash collection that included a curbside mixed recyclables program to meet the mandates of AB 939, and unlimited green waste removal. Resolution No. 4217 established the base residential and commercial disposal rates. The franchise agreement allows the franchise hauler to request rate adjustments based on changes in the Consumer Price Index (CPI) and changes in operating costs, such as landfill tipping fees and mandated programs.
In July, 2020, Burrtec Waste Industries proposed to defer the 2020/21 rate adjustment and the cost recovery for both residential tax roll and residential direct bill customers to the 2021/2022 cycle. The intent was to recover the 2020/2021 costs in the 2021/2022 cycle which in effect results in a deferred cost recovery and true-up adjustment. Burrtec's generous deferral offered relief to ratepayers caused by the economic stress from COVID-19 by delaying the effective date one year.
ANALYSIS/DISCUSSION:
On June 11, 2019, the City Council conducted a Public Hearing in accordance with Proposition 218 procedures and adopted a Three Year Municipal Solid Waste Collection, Recycling and Disposal Rates for Fiscal Years 2019/2020 through 2021/2022.
This year's Residential rates include the following components.
* No CPI adjustment to the 2021/2022 Residential Hauler Fee component
* Deferment Stabilization Fee is revised to recover the 2020/2021 adjustments over two full years, 2021/2022 and 2022/2023 rate cycles
* Change in the WDA disposal rate from $39.12 to $38.00
This...
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