Adjustment of commercial and residential solid waste disposal rates

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City of Colton Agenda Report Council Meeting of June 5, 2001 Page 3 Detailed rate calculation examples based on the aforementioned adjustment clause stipulated in the agreement, for each of the service options provided, are included as an attachment to this report. Finally with regards to the adjustment clause stipulated in the agreement, the agreement provides that the CPI Index for the month of April be used. Because of logistical reasons, staff, with Taormina's concurrence, would suggest that the CPI Index for the month of January be used, the reason being that April statistical data is not complete until June for rates that are scheduled for adjustment in July. From a logistical standpoint it is easier to plan and budget for changes in rates when information is available in advance (available in March using the January Index compared to June using the April Index). Comparison of Local Rates Attached to this report is a comparative analysis of refuse disposal rates for eleven cities in the Inland Empire including Colton. The analysis includes comparisons for the surveyed city's residential rates and the rate charged for a 3 -yard commercial bin collected one time per week. Below is a quick analysis of how Colton's adjusted rate will compare to the rates of neighboring cities. Residential Colton $16.67 Mean $17.61 Median $17.60 Colton to Mean $(0.94) (5.34%) Colton to Median $(0.93) (5.28%) Comments on Services Commercial (3 -yd 1 x week) $93.24 $88.50 $90.67 $4.74 5.36% $2.57 2.83% The Municipal Solid Waste Collection and Disposal Services offered through the agreement with Taormina Industries LLC (Republic Services) is a fully automated three - container service including a container for solid waste, yard waste, and commingled recyclables. Additional services such as bulky item collection are offered as part of the rate and additional levels of service are available for additional costs. Since making the transition from a municipally operated manual collection system with limited recycling, to a fully automated service with a fully integrated commingled recycling, we have made significant inroads in obtaining compliance with AB939, the State Law that requires municipalities to divert 50% of their 1990 base year tonnage from the landfill system by the year 2000. Based on the recent base year adjustment approved by the California Integrated Waste Management Board, the City of Colton anticipates full compliance with AB 939 with a diversion rate of approximately 54%. FISCAL IMPACT: The proposed rate adjustment has a positive impact on the General Fund as the City of Colton is paid a franchise fee that is a percentage (15%) of the rate. We estimate this positive impact to be $27,500 for fiscal year 2001/2002.