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HomeMy WebLinkAboutAGENDA REPORT 2021 1117 CCSA REG ITEM 08A POWERPOINT2022 Maximum Solid Waste Rates November 17, 2021 City of Moorpark 2022 Maximum Solid Waste Rates Moorpark Municipal Code Section 8.36.350 grants authority to the City Council to establish a ceiling on Solid Waste Rates charged by the Franchisee. Rate Adjustment Methodology ●Annual Fee Increase ●Section 5.3.1 of the Franchise Agreement provides a mechanism by which the Hauler (Waste Management) can request a fee increase each year. ●Fee increase may not exceed 5% annually per section 5.3.1 (D) of the Franchise Agreement. ●Fee increase is computed using a combination of Consumer Price Index and Landfill Tipping Fee Increases. ●70% of (previous base rate multiplied by September – September Consumer Price increase) PLUS 30% (previous base rate multiplied by Landfill Tipping Fee increase). ●Section 5.3.3 of the Franchise Agreement provides for extraordinary increases. (No extraordinary increase requested for 2022) 2022 Rate Increase Example Calculation (Standard 3-Bin Residential Service) $31.77 x 4.6%= $1.46 $1.46 x 70% = $1.02 $31.77 x 2.57% = $0.81 $0.81 x 30% = $0.25 Landfill Tipping Fee Increase = 2.57% Sept. 2021 –Sept. 2022 Consumer Price Index Adjustment = 4.6% $31.77+$0.25+$1.02 = $33.04 (2022 Base Rate) $33.04 + $1.20 (AB939 Fee) + $2.11 (City Franchise Fee) = $36.35 (2022 Proposed Rate) 2022 Maximum Solid Waste Rate Year Over Year Change Residential 3 Cart Regular Service (Cart Sizes Vary) Fiscal year 2021 rate 2022 rate % Change Moorpark $35.00 $36.35 3.86% Moorpark’s Seniors $29.27 $33.38 3.79% Simi Valley $34.82 $36.21 3.83% 2022 Maximum Solid Waste Rate Year Over Year Change Commercial Discard 3 cubic yard bin/1 week Fiscal Year 2021 rate 2022 rate % Change Moorpark $184.49 $191.86 3.99% Simi Valley $167.38 $174.06 4.00% Organics Disposal 64 gallon cart/1 week Fiscal Year 2021 rate 2022 rate % Change Moorpark $69.92 $72.70 3.98% Simi Valley $62.05 $64.53 4.00% 2022 Maximum Solid Waste Rate Year Over Year Change Commercial Recycling 3 cubic yard bin/1 week Fiscal Year 2021 rate 2022 rate % Change Moorpark $138.52 $142.98 3.22% Simi Valley $109.16 $112.67 3.22% Commercial Green Waste Disposal 3 cubic yard bin/1 week Fiscal Year 2021 rate 2022 rate % Change Moorpark $140.58 $146.19 3.99% Simi Valley $114.05 $118.60 3.99% Public Hearing Ventura County Star Mailing Insert Approved Waste Management Mailing Insert in December Bill informing of anticipated increases If approved, new rates will be effective January 1, 2022 Noticed in Ventura County Star Staff Recommendation: Adopt Resolution No. 2021 -____, adopting new maximum solid waste rates, effective January 1, 2022, and rescinding resolution No. 2020-3973 Program Manager Finance Department I Solid Waste Division (805) 517-6241 Mackenzie Douglass