2023-09-19 City Council - Full Agenda- Regular Meeting

Browse Search

Staff Report to the Mayor and City Council Solid Waste Franchise Agreement - Discussion September 19, 2023 Page 3  Replace all existing 64-gallon residential carts with new 96-gallon, SB-1383 compliant carts, with no additional cost to the residents. ($2.8 - $3.0m investment by CR&R)  Implement new Host Fee on July 1, 2024, as stated in Option 1. Will generate estimated $200,000 per year in City revenues, based on CR&R estimates.  CR&R will add a Free Paper Shredding Event at each community clean-up, twice per year.  CR&R will provide residents with a free Sharp’s disposal program  Full an early SB 1383 compliance, concerning carts. Compliance is required by 2036.  Begin Site Improvements and expansion within 24 – 36 months ($12 - $15M investment)  The City will realize an additional incremental tax revenue gain from our new facility expansion in the City of Colton.  CR&R will forgo its 2023 CPI Increase for all Colton residential customers; current residential rate will be frozen through July 1, 2024. This would be a savings of $2.82/mo per customer.  $500,000 Impact Mitigation Fee payable to City of Colton upon execution of the contract amendment. Colton recently executed an MOU with San Bernardino County, Public Environmental Services Division, to conduct inspections of Commercial facilities for SB 1383 Edible Food Organics compliance and provide reporting, gather information/data from Food Recovery Organizations, conduct education and outreach to commercial food generators. Colton is in compliance with SB 1383 collection, reporting and education components. Staff recently conducted a random inspection of residential organics collection, and it was observed that there was organic food waste included, with very little non-organic material included. FISCAL IMPACTS Option 1 Fiscal Impact would increase revenues by estimated $200,000 for Host City Fee, as the current Host Fee is $1.00/ton, an estimated $798,509 per year from the 8.7% CPI increase to residential customers of $2.82/month. Estimated increase of $118,426 for Franchise Fee, based on increased revenues from CPI increase. Option 2 Fiscal Impact would increase revenues by estimated $200,000 for Host City Fee, as the current Host Fee is $1.00/ton, $250,000 in year 6 for Impact Mitigation Fee. The City would not realize an estimated $798,509 per year from 8.7% CPI increase to residential customers of $2.82/month, as CR&R would not implement until July 1, 2024. This would also result in no increase in Franchise Fees of an estimated $118,426. Option 3 Fiscal Impact would increase revenues by estimated $200,000 for Host City Fee, as the current Host Fee is $1.00/ton, and $500,000 for Impact Mitigation Fee. 1 Packet Pg. 9