While this is a story about garbage pick up in the city of Oakley, every California city is going to face the same increase—in this case State law is forcing Oakley to increase the cost of garbage pick up by 23%. The State is also raising the cost of water and electricity. So while other States may recover from the sonn to be here Recession, California will continue to make it impossible for the middle class to economically survive the taxes, inflated costs and regulations caused by Sacramento.
“On Tuesday, the Oakley City Council is set to consider an application to increase residential solid waste collection rates by 23.39% over the next 5-years.
According to the Staff Report, 17.41% of the proposed increase is being directly tied to Senate Bill 1383 which is an unfunded State mandate aimed at reducing the statewide disposal of organics by 75% by 2025. It requires that each jurisdiction redefine and develop methods for managing, tracking, regulating, procuring organics, and more.”
Oakley to See 23% Garbage Rate Increase Due to SB 1383
East County Today, 3/22/22
On Tuesday, the Oakley City Council is set to consider an application to increase residential solid waste collection rates by 23.39% over the next 5-years.
According to the Staff Report, 17.41% of the proposed increase is being directly tied to Senate Bill 1383 which is an unfunded State mandate aimed at reducing the statewide disposal of organics by 75% by 2025. It requires that each jurisdiction redefine and develop methods for managing, tracking, regulating, procuring organics, and more.
The City Council will consider two rate options for meeting the $1.73 million increased operational cost thanks to Senate Bill 1383—a reduction in statewide disposal of organics by 75% by 2025.
- Option 1, like typical changes to base rates, implements a 23.29% increase in 2022.
- Option 2 meets the revenue requirement over five- years, with yearly average increases of 8.88% during this period.
- It is important to note that the total cost to existing customers over this 5-year period will be exactly the same under Option 1 and Option 2. In year 6—a new rate will be established and assuming no other state mandates, the rate should stay similar.
Due to the increased services required for SB 1383 compliance and other customary operational cost increases, MDRR submitted a comprehensive refuse, recycling, and organics collection base rate application and supplemental information to the City on November 12, 2021.
Per the terms of the Agreement with the City, this base year review starts off in a relatively good position with a necessary adjustment of only ~$105,865 and representing what would otherwise only be an approximate 1.42% upward adjustment to the residential rates.
Current Rates
- 32 gallon: $38.24
- 64 gallon: $53.47
- 96 gallon: $60.66
Avg cost – $50.70
Proposed Rates
- 32 gallon: $47.14
- 64 gallon: $65.92
- 96 gallon: $74.79
- Avg cost – $62.62
Average Costs (Current)
- $41.60 – Clayton
- $41.96 – Brentwood
- $42.40 – Pleasant Hill
- $47.96 – Antioch
- $50.69 – Walnut Creek (potential 1.97% increase)
- $50.79 – Oakley (Current)
- $57.65 – Pittsburg (+7.68% in Jan 2022)
- $59.11 – Martinez
- $59.70 – Concord (requested increase of 27.11%)
- $60.57 – Danville (potentially increasing 6.83%)
- $62.62 – Oakley (Proposed)
- $75.90 – San Ramon (Jan 2020 approved +29%)
- $78.32 – Richmond
According to the Staff Report:
MDRR’s application also accounts for additional operating costs such as: long term planned vehicle fleet updates per the California Air Resources Board (CARB); SB 1383 implementation (additional drivers & trucks); Cost increases of labor because of a new five-year collective bargaining agreement (CBA); Periodic cart replacements unrelated to SB 1383 requirements; and the RCTS gate rate increase (approved by the City of Pittsburg) which collectively total ~$1,738,470 or an approximate 23.29% proposed upward adjustment to the residential rates. MDRR has indicated this proposed adjustment is sufficient to cover anticipated operational costs outlined in the base rate application.
The anticipated SB 1383 related specific costs in Oakley alone total ~$1,299,946 and make up the most significant component of the requested increase. The highest cost of the above items directly relates to the additional drivers & trucks, which will be needed to facilitate the collection of organics going from a bi-weekly schedule to a weekly schedule. As part of SB1383, MDRR will lead jurisdictional efforts in cart compliance, outreach, education, monitoring, inspection, facility improvements, post-collection processing, and more.
The staff report says City Staff recommends the proposed adjustment be spread over five years (Option 2), softening the increase felt by ratepayers, including additional and customary annual RRI adjustments, to accommodate these new un-funded State-mandated processing and diversion requirements.
Fiscal Impact
The main impact of this action is on residential refuse collection customers who, in Option 2, would pay on average an additional $5.44 per month (over the next five years) in collection fees, depending on the size of the containers they select. This proposed increase is necessary to comply with the Agreement, allowing MDRR to recover its costs and earn a reasonable return on current regulated activities as well as new unfunded State mandates. The proposal would also increase City franchise fee revenues by approximately $99,000 in the calendar year 2022/23.
The requested approval would increase the fees paid by the residents. In addition to inclusion in the current agenda, which is broadly distributed, staff also published a Public Hearing Notice. This included the announcement of the hearing in the Oakley Outreach and FYI email blasts.
This comprehensive review is presented to the City Council for consideration and approval of the new rates. The complete base rate report, application, and summary presentation are attached to this staff report for further background and information.
Staff Recommendation
Staff recommends the City Council adopt the attached resolution, approving the application for the base rate adjustment, utilizing Option 2, with the base rate spread over five years, as submitted; and allowing the City Manager the authority to ministerially review and approve customary annual RRI adjustments, incorporating the timing and implementation of solid waste related fees into the annual City Master Fee Schedule process as is customary with all other City fees.
