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Rate Increase Approved for Solid Waste (Garbage/Recycling) Collection for 2012

At it's January 9 meeting, the City Council of Redwood City unanimously approved a 7.2% increase in garbage/recycling collection rates - less than the 7.81% increase that was originally proposed. The lower increase resulted from the Council deciding not to implement a proposed new curbside household hazardous waste collection service (which would have added 0.61% to the increase).

The new rates are in effect as of January 10, 2012. For the majority of Redwood City households, which have the 32-gallon collection cart, this will be an additional $1.78 per month/per cart (for those with 20-gallon carts the approved increase is 75¢ per month/per cart). Corresponding increases are now in effect for larger carts, for commercial service, and for backyard collection service.

During the Council’s discussion on the rate increase, staff was directed to update rate projections for future years and also to undertake an analysis of the current rate methodology. The City wants to make sure that the most equitable and fair approach is in place, in order to ensure predictability and certainty in future rates for the community.

Solid waste collection rates are adopted annually by the City of Redwood City. Rates are based on a financial evaluation of the previous year's operating costs and revenues for Recology San Mateo County, the collection contractor.

Redwood City has been able to moderate the rate increases by previously setting aside and using its "rate stabilization" fund in past years to help offset the increases to customers.

The rate increase of 7.2% is based on these factors:

2.3%
Costs for providing collection services in 2012
2.9%
Costs for collection services provided in 2011 (to cover revenue shortfall)
2.0%
Additional revenue shortfall due to projected 2012 can size reductions

Here is a comparison of the old with the new rates (for residential and commercial, monthly).

Residential Monthly
Capacity
Old Rate
New Rate
Dollar Change per Month
20 gallon
$10.30
$11.05
75¢
32 gallons
$24.73
$26.51
$1.78
64 gallons
$49.46
$53.02
$3.56
96 gallons
$74.18
$78.70
$4.52

 

Commercial Monthly
Subscription Level
(yards per week)
Old Rate ($/Yard)
New Rate ($/Yard)
Dollar Change per Month
1 - 10
$115.60
$123.92
$8.32
11 - 20
$119.06
$127.63
$8.57
21 - 30
$122.63
$131.46
$8.83
31 - 50
$126.31
$135.41
$9.10
51 +
$130.10
$139.46
$9.36

The new rates were effective as of Tuesday, January 10th.

At the public hearing held on January 9, 2012, the Council took comment and deliberated on the proposed increase. 85 valid letters of protest were recieved (if more than 50% of affected property owners submit a valid written protest of the proposed increase, then the increase cannot be approved).

Also please see the CIty's "Questions & Answers on Solid Waste Collection Rate Increases."

Questions about the rate increase can be directed to 650-780-7464.

 

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