AR 071806 Waste Fees - Laserfiche WebLink

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DISCUSSION/ANALYSIS: The residential rate provides for collection and composting of solid waste, green waste, recyclable materials and bulky items. The City of Colton continues to receive a 15% Franchise Fee, a percentage of the rate charged by Republic Industries. Last year's single family rate without the utility tax was $18.62. The billed single family rate with the utility tax was $19.35; this year's proposed billed rate of $20.71 is a result of the following increases in cost: • CPI increase $0.679 • San Bernardino County Disposal Cost increase $0.175 • Franchise Fee $0.19 • CARB Fee $0.11 • Diesel Surcharge $0.31 • Fee Adjustment ($0.16) • Utility Tax $0.06. These increases total $1.364. The increase in CP1, as described in the previous section, allows for increased costs that are calculated based on each year's local CPI index; the January 2006 local CIPI index was 5.40%. The per ton disposal cost of solid waste increases annually and is determined by the County of San Bernardino. The Franchise Fee is 15% of the rate charged by Republic Industries that is received by the City. Last year the State of California mandated that all collection vehicles in an organization's fleet be installed with emission reduction filters incrementally between 2005 and 2009. The CARB Fee reflects Republic Industries' costs to comply with this requirement, which is a mandated cost that did not exist when the original agreement with Republic Services was created. As a result, this cost was not included in the compensation of the agreement; this is not an increase to the hauler's profit margin but a pass-through cost due to a state mandate. The diesel surcharge listed above is a result of the drastic swell experienced in fuel charges recently; the hauler has requested a rate increase to offset any increases beyond ten percent of the average prices experienced in 2003. The fee adjustment is a result of the delayed implementation by the County of its solid waste disposal increases for fiscal year 2005/2006; the resulting savings from the delay are being returned to the residents. The 4% Utility Users Tax was approved by the voters in March 2004; the monthly single family rate billed to the resident will be $20.71. The total rate charged would experience a $1.364 increase from last fiscal year's billed rate of $19.35 to the new total rate of $20.71 for a residential single family customer. ORANGE\AMORRIS\28243.4