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HomeMy WebLinkAboutPPT - Solid Waste Rate Increase - 7-2-2025 (revised)-c1Conduct a Public Hearing to Consider Adjusting the Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing and Disposal Services (All Wards) Presented by: Lynn Merrill Director of Public Works Item No. 2 Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. GENERAL BACKGROUND •City of San Bernardino entered into Current Franchise Agreement with Burrtec Waste Industries on January 19, 2016. •City approved Amendment 1 and Amendment 2 relating to transfer of assets on January 25, 2016. •City approved Amendment 3 on July 3, 2024, extending the term of the existing Franchise Agreement from March 31, 2026, to March 31, 2031. Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. GENERAL BACKGROUND •Burrtec provides following services under the Existing Franchise Agreement: •Weekly collection of refuse, recycling, green waste and organic wastes at single and multifamily residential properties. (Sections 7 and 8) •On-call of bulky item collection at single and multifamily residential properties. (Sections 7.8 and 8.3) •Commercial collection services using 64- and 96-gallon carts, 2-, 3, 4- and 6- yard commercial front load bins and 10-, 20- and 40-yard roll off bins. (Section 9) •Collection services at City Service Units at no cost to City. (Section 10) •Street Sweeping (Section 11). •Right of Way Clean Up Service at no cost to City. (Section 12) Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. GENERAL BACKGROUND •As part of existing Francise Agreement, Burrtec provides the following annual revenue payments to the City totaling $10,763,500 (FY 25-26 Estimate): •Annual Value-Added Franchise Fee: $500,000 per year until April 1, 2025 (Section 3.4.3) •Host Fee Payment: $325,000/yr. (Section 3.4.4(e)) •Landfill Maintenance Cost Avoidance Payment: $500,000 per year, with increase in same amount as any change to the Maximum Permissible Services Rates (Section 3.4.5) •BioCNG Biofueling Station Payment: $500,000 each year for use of City’s biofuel station. (Section 3.4.6) •Infrastructure Repair Fee Payment: $250,000/yr. (Section 3.4.7) •Monthly Franchise Fee Payment: 20% of total gross receipts. •Annual Recyclable Revenue Share Payment: 50% of net revenue from sale of recyclable materials. Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. MAXIMUM PERMITTED SERVICE RATE The Franchise Agreement allows for adjustments to the Maximum Permitted Service Rates (Section 21.1.3) CPI Adjustments - Section 21.1.3(b) provides that Burrtec may increase the Maximum Permitted Service Rates by CPI each July 1, up to a maximum of a 5% increase annually. Any amount above 5% or below 0% will be carried forward and applied in subsequent years. Burrtec must send the proposed rate adjustment calculations and full rate schedule to the City Manager for review by March 1 each year. The CPI for the rate increases shall refer to the 12-month annual average percentage change for the most recent January 1 – December 31 period, compared to the prior January 1 – December 31 period, in the All Urban Consumers Index (CPI-U), Not Seasonally Adjusted, All Items, Riverside-San Bernardino-Ontario, CA, as published by the U.S. Department of Labor, Bureau of Labor Statistics. Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. MAXIMUM PERMITTED SERVICE RATE On February 28, 2025, Burrtec submitted a proposed rate increase to the City Manager for Maximum Permitted Service Rates, effective July 2, 2025. Upon examination of the rate submission, staff determined that the monthly Single Family Residential Rate increase proposed for FY 25-26 was $29.79, which was a 12.8% increase over the current rate of $26.42. Additional commercial front load bin rate increases ranged from a 2.61% (CPI) to 8.03%. On or about March 18, 2025, staff and representatives of Burrtec met to review and discuss the proposed rate increases. As a result of that discussion, Burrtec provided an updated submission on March 20, 2025, which resulted in the proposed $27.75 rate increase for Single Family Residential, which represents a 5.00% increase. Commercial rates were not adjusted by Burrtec in the revised submission, and increases reflected higher costs associated with greater frequency of services. Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. RESIDENTIAL RATE HISTORY The Maximum Permitted Service Rate on July 1, 2021 was $28.30; however, due to the 5% cap on CPI, the actual charged by Burrtec was $26.42. EFFECTIVE DATE MONTHLY NOT TO EXCEED RATE MAXIMUM PERCENT INCREASE OF 5% ACTUAL MONTHLY RATE REFERENCE 2016 22.84$ 0%Award Contract 1/25/2016 2017 22.84$ 0% 4/1/2018 23.28$ 1.92%Resolution 2018-90 7/1/2018 24.44$ 4.98%Resolution 2018-90 7/1/2019 25.66$ 4.99%25.23$ Resolution 2018-90 / Resolution 2019-157 7/1/2020 26.95$ 5.03%25.53$ Resolution 2018-90 7/1/2021 28.30$ 5.01%26.42$ Resolution 2018-90 2022 -6.64%26.42$ 2023 0.00%26.42$ 2024 0.00%26.42$ Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. RESIDENTIAL RATE HISTORY The Maximum Permitted Service Rate on July 1, 2021 was $28.30; however, due to the 5% cap on CPI, the actual charged by Burrtec was $26.42. Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. PROPOSED SAN BERNARDINO RESIDENTIAL RATE (Effective 7-2-2025) Existing SF Residential Rate: $26.42 per month Add CPI (2.61%): $0.6895 per month Increase: $27.11 per month Add Cost Recovery (2.39%) $0.6314 per month Maximum Permitted Service Rate $27.74 per month Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. COMPARABLE RESIDENTIAL RATES Average Monthly Residential Rate for all Jurisdictions is $37.07 Jurisdiction Hauler Residential (proposed 2025-2026) Percent Change 2025- 2026 San Bernardino Burrtec 27.75$ 5.03% Loma Linda CR&R 30.14$ 2.69% Colton CR&R 32.44$ 0.00% Moreno Valley Waste Mangement 32.99$ 0.00% Grand Terrace Burrtec 34.72$ -2.42% Highland Burrtec 34.84$ 2.62% Rancho Cucamonga Burrtec 34.93$ 4.46% Rialto Burrtec 36.56$ 5.82% Fontana Burrtec 37.63$ 4.09% Pomona City of Pomona 38.40$ 3.00% Chino Waste Management 38.82$ 5.00% Upland Burrtec 39.54$ 3.81% Riverside City of Riverside / Athens Disposal 39.75$ 6.51% Montclair Burrtec 39.91$ 3.10% Redlands City of Redlands 40.77$ 0.00% San Bernardino County Burrtec 41.29$ 2.51% Yucaipa Burrtec 43.03$ 1.89% Ontario City of Ontario 43.81$ 0.00% Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. COMPARABLE RESIDENTIAL RATES Average Monthly Residential Rate for all Jurisdictions is $37.07 Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. COMMERCIAL RATE HISTORY Size Freq 2016 4/1/2018 7/1/2018 7/1/2019 7/1/2020 7/1/2021 7/1/2019 2021 2022 2023 2024 2 cu. yrd.1 x Wk 112.10$ 114.25$ 119.96$ 125.96$ 132.26$ 138.87$ 139.46$ 146.08$ 146.08$ 146.08$ 146.08$ 2 cu. yrd.2 x Wk 205.31$ 209.25$ 219.71$ 230.69$ 242.23$ 254.34$ 255.63$ 267.76$ 267.76$ 267.76$ 267.76$ 2 cu. yrd.3 x Wk 304.44$ 310.28$ 325.79$ 342.08$ 359.19$ 377.14$ 379.11$ 397.10$ 397.10$ 397.10$ 397.10$ 2 cu. yrd.4 x Wk 401.20$ 408.89$ 429.33$ 450.80$ 473.35$ 497.01$ 499.64$ 523.35$ 523.35$ 523.35$ 523.35$ 2 cu. yrd.5 x Wk 495.60$ 505.11$ 530.35$ 556.88$ 584.73$ 613.95$ 617.29$ 646.58$ 646.58$ 646.58$ 646.58$ 2 cu. yrd.6 x Wk 661.98$ 674.68$ 708.40$ 743.83$ 781.03$ 820.06$ 823.64$ 862.73$ 862.73$ 862.73$ 862.73$ 3 cu. yrd.1 x Wk 119.18$ 121.47$ 127.54$ 133.92$ 140.61$ 147.65$ 148.82$ 155.88$ 155.88$ 155.88$ 155.88$ 3 cu. yrd.2 x Wk 225.56$ 229.89$ 241.38$ 253.45$ 266.12$ 279.42$ 281.87$ 295.24$ 295.24$ 295.24$ 295.24$ 3 cu. yrd.3 x Wk 335.11$ 341.54$ 358.61$ 376.54$ 395.38$ 415.14$ 418.80$ 438.67$ 438.67$ 438.67$ 438.67$ 3 cu. yrd.4 x Wk 440.14$ 448.58$ 471.00$ 494.56$ 519.29$ 545.25$ 550.17$ 576.27$ 576.27$ 576.27$ 576.27$ 3 cu. yrd.5 x Wk 547.51$ 558.01$ 585.90$ 615.20$ 645.97$ 678.26$ 684.42$ 716.89$ 716.89$ 716.89$ 716.89$ 3 cu. yrd.6 x Wk 840.16$ 856.27$ 899.07$ 944.04$ 991.25$ 1,040.79$ 1,047.09$ 1,096.78$ 1,096.78$ 1,096.78$ 1,096.78$ 4 cu. yrd.1 x Wk 130.98$ 133.49$ 140.17$ 147.18$ 154.54$ 162.26$ 163.99$ 171.77$ 171.77$ 171.77$ 171.77$ 4 cu. yrd.2 x Wk 247.80$ 252.55$ 265.17$ 278.44$ 292.36$ 306.98$ 310.54$ 325.27$ 325.27$ 325.27$ 325.27$ 4 cu. yrd.3 x Wk 364.61$ 371.60$ 390.17$ 409.69$ 430.18$ 451.68$ 457.06$ 478.75$ 478.75$ 478.75$ 478.75$ 4 cu. yrd.4 x Wk 480.26$ 489.47$ 513.93$ 539.64$ 566.63$ 594.95$ 602.16$ 630.74$ 630.74$ 630.74$ 630.74$ 4 cu. yrd.5 x Wk 595.90$ 607.33$ 637.68$ 669.58$ 703.07$ 738.20$ 747.25$ 782.71$ 782.71$ 782.71$ 782.71$ 4 cu. yrd.6 x Wk 1,036.04$ 1,055.91$ 1,108.68$ 1,164.14$ 1,222.36$ 1,283.45$ 1,292.37$ 1,353.70$ 1,353.70$ 1,353.70$ 1,353.70$ 6 cu. yrd.1 x Wk 189.98$ 193.63$ 203.31$ 213.47$ 224.15$ 235.36$ 238.00$ 249.30$ 249.30$ 249.30$ 249.30$ 6 cu. yrd.2 x Wk 362.26$ 369.21$ 387.66$ 407.05$ 427.41$ 448.77$ 454.17$ 475.72$ 475.72$ 475.72$ 475.72$ 6 cu. yrd.3 x Wk 535.71$ 545.98$ 573.27$ 601.94$ 632.05$ 663.64$ 671.78$ 703.65$ 703.65$ 703.65$ 703.65$ 6 cu. yrd.4 x Wk 713.90$ 727.59$ 763.96$ 802.17$ 842.29$ 884.38$ 895.24$ 937.71$ 937.71$ 937.71$ 937.71$ 6 cu. yrd.5 x Wk 876.74$ 893.56$ 938.21$ 985.14$ 1,034.41$ 1,086.11$ 1,099.77$ 1,151.95$ 1,151.95$ 1,151.95$ 1,151.95$ 6 cu. yrd.6 x Wk 1,014.94$ 1,034.41$ 1,086.10$ 1,140.43$ 1,197.47$ 1,257.31$ 1,307.21$ 1,369.23$ 1,369.23$ 1,369.23$ 1,369.23$ Commercial/MF Trash Bins INITIAL FRANCHISE RESOLUTION 2018-90 RESOLUTION 2019-157 (13.86%) Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. PROPOSED COMMERCIAL / MULTIFAMILY FRONT LOAD BINS (EFFECTIVE 7-2-2025) RATE INCREASE %RATE INCREASE %INCREASE % 1 cu. yrd.1 x Wk 145.42$ 151.28$ 5.86$ 4.03%149.22$ 3.80$ 2.61%2.06$ 1.42% 1 cu. yrd.2 x Wk 266.44$ 277.52$ 11.08$ 4.16%273.39$ 6.95$ 2.61%4.13$ 1.55% 1 cu. yrd.3 x Wk 395.11$ 411.62$ 16.51$ 4.18%405.42$ 10.31$ 2.61%6.20$ 1.57% 1 cu. yrd.4 x Wk 520.70$ 542.55$ 21.85$ 4.20%534.29$ 13.59$ 2.61%8.26$ 1.59% 1 cu. yrd.5 x Wk 643.27$ 670.38$ 27.11$ 4.21%660.06$ 16.79$ 2.61%10.32$ 1.60% 1 cu. yrd.6 x Wk 858.77$ 893.57$ 34.80$ 4.05%881.18$ 22.41$ 2.61%12.39$ 1.44% 2 cu. yrd.1 x Wk 146.08$ 154.01$ 7.93$ 5.43%149.89$ 3.81$ 2.61%4.12$ 2.82% 2 cu. yrd.2 x Wk 267.76$ 283.00$ 15.24$ 5.69%274.75$ 6.99$ 2.61%8.25$ 3.08% 2 cu. yrd.3 x Wk 397.10$ 419.83$ 22.73$ 5.72%407.46$ 10.36$ 2.61%12.37$ 3.11% 2 cu. yrd.4 x Wk 523.35$ 553.49$ 30.14$ 5.76%537.01$ 13.66$ 2.61%16.48$ 3.15% 2 cu. yrd.5 x Wk 646.58$ 684.08$ 37.50$ 5.80%663.46$ 16.88$ 2.61%20.62$ 3.19% 2 cu. yrd.6 x Wk 862.73$ 909.99$ 47.26$ 5.48%885.25$ 22.52$ 2.61%24.74$ 2.87% 3 cu. yrd.1 x Wk 155.88$ 166.14$ 10.26$ 6.58%159.95$ 4.07$ 2.61%6.19$ 3.97% 3 cu. yrd.2 x Wk 295.24$ 315.31$ 20.07$ 6.80%302.95$ 7.71$ 2.61%12.36$ 4.19% 3 cu. yrd.3 x Wk 438.67$ 468.67$ 30.00$ 6.84%450.12$ 11.45$ 2.61%18.55$ 4.23% 3 cu. yrd.4 x Wk 576.27$ 616.04$ 39.77$ 6.90%591.31$ 15.04$ 2.61%24.73$ 4.29% 3 cu. yrd.5 x Wk 716.89$ 766.51$ 49.62$ 6.92%735.60$ 18.71$ 2.61%30.91$ 4.31% 3 cu. yrd.6 x Wk 1,096.78$ 1,162.51$ 65.73$ 5.99%1,125.41$ 28.63$ 2.61%37.10$ 3.38% 4 cu. yrd.1 x Wk 171.77$ 184.50$ 12.73$ 7.41%176.25$ 4.48$ 2.61%8.25$ 4.80% 4 cu. yrd.2 x Wk 325.27$ 350.23$ 24.96$ 7.67%333.76$ 8.49$ 2.61%16.47$ 5.06% 4 cu. yrd.3 x Wk 478.75$ 515.97$ 37.22$ 7.77%491.25$ 12.50$ 2.61%24.72$ 5.16% 4 cu. yrd.4 x Wk 630.74$ 680.17$ 49.43$ 7.84%647.20$ 16.46$ 2.61%32.97$ 5.23% 4 cu. yrd.5 x Wk 782.71$ 844.33$ 61.62$ 7.87%803.14$ 20.43$ 2.61%41.19$ 5.26% 4 cu. yrd.6 x Wk 1,353.70$ 1,438.49$ 84.79$ 6.26%1,389.03$ 35.33$ 2.61%49.46$ 3.65% 6 cu. yrd.1 x Wk 249.30$ 268.17$ 18.87$ 7.57%255.81$ 6.51$ 2.61%12.36$ 4.96% 6 cu. yrd.2 x Wk 475.72$ 512.86$ 37.14$ 7.81%488.14$ 12.42$ 2.61%24.72$ 5.20% 6 cu. yrd.3 x Wk 703.65$ 759.10$ 55.45$ 7.88%722.02$ 18.37$ 2.61%37.08$ 5.27% 6 cu. yrd.4 x Wk 937.71$ 1,011.63$ 73.92$ 7.88%962.18$ 24.47$ 2.61%49.45$ 5.27% 6 cu. yrd.5 x Wk 1,151.95$ 1,243.82$ 91.87$ 7.98%1,182.02$ 30.07$ 2.61%61.80$ 5.37% 6 cu. yrd.6 x Wk 1,369.23$ 1,479.13$ 109.90$ 8.03%1,404.97$ 35.74$ 2.61%74.16$ 5.42% Additional Increase Commercial/MF Trash Bins 2024SizeFreq EXISTING RATE Proposed By Burrtec CPI INCREASE OF 2.61% ONLY Phase I – Surplus Land Declarations •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. COMMERCIAL RATE EFFECTS AND ADJUSTMENTS OF PROPOSED RATES Commercial customer needs 12 cubic yards of service per week: OPTION 1: 2-cubic yards of service six-days per week: $909.99 OPTION 2: 3-cubic yards of service four-days per week: $616.04 OPTION 3: 4-cubic yards of service three-days per week: $515.97 OPTION 4: 6-cubic yards of service two-days per week: $512.86 Commercial customers have ability to adjust both frequency of service and size of bin and may be able to reduce service costs further by increasing recycling or organic services. Recommendation It is recommended that the Mayor and City Council of The City of San Bernardino, California: 1.Conduct a public hearing to receive public comments on the proposed Maximum Permitted Services Rates for Integrated Solid Waste Collection, Processing, and Disposal Services; and 2.Determine if written protests have been received from a majority of the owners and tenants of parcels which are subject to the Maximum Permitted Services Rates for Integrated Solid Waste Collection, Processing, and Disposal; and, 3.If there is no majority protest, adopt Resolution No. 2025-xxx of the Mayor and City Council of the City of San Bernardino, California establishing the Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing and Disposal, starting July 2, 2025. Phase I – Surplus Land Declarations Discussion (Cont.) •The services, which may be funded with proceeds of the special tax include: •All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way •Public lighting including street lights and traffic signals, •Maintenance of streets, including pavement management, and street sweeping, •Maintenance and operation of water quality improvements including storm drainage and flood protection facilities •In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. Questions?