This Rate Resolution updates the waste services rates impacted by the extension of the Community Waste Disposal contract through May 31, 2024.   The current Rate Resolution was changed in three areas:

• Open top rolloff container rates were all reduced by four (4) percent.  This decrease was part of CWD's contract extension offer to make their open top rolloff container rates more competitive.  Open top rolloff container rates are the only rates changing from the current Rate Resolution that became effective on June 1, 2018.
• The Variable Fuel Adjustment Fee (VFAF) paragraph and associated rate adjustment table was deleted.  The contract extension dropped the previous VFAF provisions.
• Additional details were added to the paragraph describing Commercial Special Services for commercial recycling.  In the Rate Resolution, a comparison of rates to haul recycling in 8 cubic yard front load containers are compared to the rates for landfill disposal of the same containers to demonstrate the cost savings attained by recycling.  For large volume recyclers, the recycling haul savings was also detailed. Additionally, for large volume recyclers the resolution outlines a recycling profit sharing program.  This program allows large volume commercial recyclers to earn a rebate between 40 to 85 percent of the sales value of recycling commodities.  The "Customer Product Payment" template that describes the commercial large volume recycling profit sharing program is attached.  This template is now part of the contract extension.  All of these commercial recycling changes are intended to promote recycling in lieu of landfilling recyclables by demonstrating the potential cost savings of recycling.

The only rate change in the new Rate Resolution is to open top roll off container rates.  As this particular commercial container represents about ten percent of CWD's billings, the decrease in commercial franchise fee payments to the City is minimal.

The Solid Waste Fund is an Enterprise Fund that operates without General Fund support.  Staff projects the fund to end FY18 with $3.5 million in fund reserves that provides about 188 days of operating reserve.  Maintenance of a healthy fund balance within or above the guideline 90 to 120 day range should not be affected by implementation of this new Rate Resolution.

Staff recommends that the City Council adopt a Resolution establishing rates and fees for commercial and residential solid waste, recycling, and household hazardous waste services.

I make a motion to adopt Resolution No. ______________ establishing rates and fees for commercial and residential solid waste, recycling, and household hazardous waste services.