HomeMy WebLinkAbout2019/09/24 Item 12 - Presentation
z Increase Proposed Rate Services Republic 1 September 24, 2019Chula Vista City Council Meeting
z 2 Annual bonuses to the City•reduction5% AB939 fee for recycling and waste •20% franchise fee •Collect all trash and recycling•Term: 10 years; option to extend to 2031•Approved in
2014•Republic Services Franchise Agreement
z 3 Two large venue events•Public works projects•City waste collection services•Container replacement•Special senior rate•Missed collection•Landfill passes•Bulky item collection•No Cost
Services Republic Services Franchise Agreement
z 4 Circumstances7.7 Increase based on Extraordinary •7.6 Most favored nation rate•7.4 Annual Increase•7.3 Initial Collection Rates•7.2 Variable Rate•Section 7-Rates for Service
z Recycling Markets 5 recycled material.world’s leading importer of Since 1990’s China was the
6 March of 2019 and Republic is now paying $16 per ton to recycleJune 2014 Republic was receiving an average of $58 per ton. Fast forward to Net Sale of Material (SOM)-Combined $100.00
$80.00 $60.00 $40.00 $20.00 $- $(20.00) $(40.00)$(21.16)$(16.68)$2.14 $2.37 $(8.64)$(29.39)$10.83 $30.69 $63.58 $78.40 $63.35 $49.88 $45.43 $29.73 $32.84 $34.02 $35.57 $24.83 $39.33
$53.44 $58.56 Beginning in 2017Commodity Price Decline’s Steadily
z 7 Audit deployed•Reviewed other programs •Verified with EDCO•Analysis regional markets•Financial Review
z$23.40$27.60$25.65gal-96$19.92$23.44$21.78gal -64$15.36$18.10$16.82gal -32costTotal yearly amountincrease Monthly increaseRate after ratemonthly Current containertrash Residential 8
Residential Increase
z$224.64$18.72$265.07$246.351/wkyard trash -5$179.76$14.98$212.11$197.131/wkyard trash -4$112.92$133.19$123.781/wkyard trash -3increasecost of Total yearly amountincrease Monthly increaseRate
after ratemonthly Current container sizetrash Commercial 9 Commercial Increase
z 10 evaluated quarterlyProcessing costs to be •negotiated downThe increase can be •
z 11 What are we doing to help?
z 12 hearing results on a public contingent on the increase on June 18 the proposed 7.6% Council approved
z parties notified101,221 affected •customers Republic Services property owners & Notices to all •to Proposition 218Hearing pursuant Conducted Public •13
z 14 the number of protests receivedCity Clerk report to Council on day public comment period -45Public Hearing Process
z 15 Economic Development Department Manuel Medrano,