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Staff Report to the Mayor and City Council <br />Solid Waste Franchise Agreement - Discussion <br />September 19, 2023 <br />Page 2 <br /> <br /> <br />Option 1 – Extend current Contract for five years to June 30, 2031, with the proposed Contract <br />Enhancements: <br /> <br /> Replace all existing 64-gallon residential carts with new 96-gallon, SB-1383 compliant <br />carts, with no additional cost to the residents. ($2.8 - $3.0m investment by CR&R) <br /> Implement new Host Fee on July 1, 2024 <br />o Out of City tons only <br />o 0-1500 TPD = $2.00 per ton <br />o 1501+ = $3.00 per ton <br />o Will generate estimated $200,000 per year in City revenues, based on CR&R <br />estimates. <br />o The current Host Fee which became effective July 1, 2016 is $1.00/ton, with no <br />sliding scale. <br /> CR&R will add a Free Paper Shredding Event at each community clean-up, twice per <br />year. <br /> CR&R will provide residents with a free Sharp’s disposal program <br /> Full an early SB 1383 compliance, concerning carts. Compliance is required by 2036. <br /> $250,000 Impact Mitigation Fee payable to the City of Colton upon signing of contract <br />amendment. <br /> The 2023 Annual CPI increase of 8.7% will be implemented to residential customers, <br />with an increase from $32.44/mo to $35.26/mo., an increase of $2.82/mo per customer. <br />Estimated increase in revenues of $798,509.23 per year <br /> <br />Option 2 – Extend current Contract for five years with an additional five-year City option, with <br />the proposed Contract Enhancements: <br /> <br /> Replace all existing 64-gallon residential carts with new 96-gallon, SB-1383 compliant <br />carts, with no additional cost to the residents. ($2.8 - $3.0m investment by CR&R) <br /> Implement new Host Fee on July 1, 2024, as stated in Option 1. Will generate estimated <br />$200,000 per year in City revenues, based on CR&R estimates. <br /> CR&R will add a Free Paper Shredding Event at each community clean-up, twice per <br />year. <br /> CR&R will provide residents with a free Sharp’s disposal program. <br /> Full an early SB 1383 compliance, concerning carts. Compliance is required by 2036. <br /> Begin Site Improvements and expansion within 24 – 36 months ($12 - $15M investment) <br /> Additional $250,000 Impact Mitigation Fee payable to City of Colton in year six of the <br />contract. <br /> CR&R will forgo its 2023 CPI Increase for all Colton residential customers; current <br />residential rate will be frozen through July 1, 2024. This would be a savings of $2.82/mo <br />per customer. <br /> <br />Option 3 – Extend current Contract for ten years, with the proposed Contract Enhancements: <br />1 <br />Packet Pg. 8