Technician and 0.5 FTE Limited Term Community Outreach Specialist.
REPORT - APPROVE REFUSE RATE INCREASE EFFECTIVE
JANUARY 1, 2024 SET BY RECOLOGY AS CONSISTENT WITH
SOLID WASTE COLLECTION SERVICES AGREEMENT AND
AUTHORIZE CITY MANAGER TO NEGOTIATE AND APPROVE A
FIFTH AMENDMENT TO THE COLLECTION SERVICE AGREEMENT
BETWEEN CITY OF SANTA ROSA AND RECOLOGY SANTA ROSA
BACKGROUND: Under the existing contract, Recology Sonoma Marin
is entitled to an annual increase of their rates; the next rate adjustment
is scheduled to be effective on January 1, 2024. Rate adjustments are
requested through an application process where Recology submits a
rate adjustment application to the City no later than October 1 annually.
The Agreement stipulates that the rate application include a Refuse
Rate Index (RRI) Adjustment using five Bureau of Labor Statics indices
(labor, diesel, vehicle replacement, vehicle maintenance, and all other)
as well as changes in landfill tipping fees, recyclable material revenue,
and organic waste processing fees. As an alternative to the RRI
adjustment, the Agreement allows the City or Recology to request a
detailed rate review every three years.
A Detailed Rate Review includes analyzing:
1. Subscription levels by line of business to test the reasonableness of
2. Forecasted costs such as labor-related costs, vehicle related costs,
other others, and lease expenses.
3. Establishing a 90% operating ratio.
RECOMMENDATION: It is recommended by the Transportation and
Public Works Department that the Council, by resolution: 1) approve the
4.33% increase set by Recology to be effective January 1, 2023 as
correct and in accordance with the City’s existing Solid Waste
Collection Services Agreement; and 2) authorize the City Manager to
negotiate and execute a Fifth Amendment to Solid Waste Collection
Agreement between the City and Recology Marin, dba Recology Santa
Rosa, to update the refuse rate index methodology, subject to approval
as to form by the City Attorney.