This is a request for the City Council to consider adopting Residential Solid Waste rate adjustments and making the new rates effective July 1, 2017.

The current Residential Solid Waste rate was adopted in FY2013 and has not been changed since. At that time, the City adopted a 13% reduction from the previous fee level. The monthly Residential Solid Waste fee of $13.10 includes once-a-week collection of customer refuse and recycling materials, two curbside bulk trash collections per year and three household hazardous waste collection opportunities per year.

The Residential Solid Waste operating fund has benefitted from a number of factors such as effective cost control, favorable landfill and recycling rates and reduced diesel fuel prices that have enabled the operation to maintain price stability. Customer growth – up until recently—was modest and could be served effectively without additional staff. Between FY2016 and FY2018, 9.5 additional FTEs will have been added along with 5 new collection vehicles to maintain service levels as residential accounts have increased.

The additional ongoing costs associated with these resource additions as well as the anticipated annual increases to the fund’s major operating costs (salaries/benefits, fleet costs, landfill rates) exceed what the fund can support without additional rate revenues. In addition, the program is receiving lower annual recycling revenues as a result of lower market material rates.

City staff is recommending that the monthly Residential Solid Waste rate for FY2018 be adjusted by $0.50 per account, or 3.9%, effective July 1, 2017. Staff is recommending a single year rate adoption for FY2018 until more certainty is obtained with the service’s landfill contract rates. Depending on the outcome of these contracts, an additional adjustment may be warranted for FY2019.

At the March 30, 2017 Council Budget Study Session, staff presented an overview of the recommendations for Residential Solid Waste rate adjustments for FY2018.

A: That the Mayor and Council adopt Resolution 2017- adjusting the Residential Solid Waste rates, making the new rates effective July 1, 2017.

The proposed Residential Solid Waste rate adjustments provides an appropriate level of revenue necessary in FY2018 for the service to address additional operational requirements. The proposed Residential Solid Waste rate adjustments are estimated to increase FY2018 Residential Solid Waste revenues by approximately $340,000 over the anticipated revenue increases from new customer growth in the fund.

The Residential Solid Waste rate adjustments will add an additional $0.50 to a resident’s bill, resulting in a monthly cost of $13.60 beginning July 1, 2017.