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City Council Approves Increase in Solid Waste (Garbage/Recycling) Collection Rates

On Monday, January 10th, 2011, the City Council of Redwood City approved an increase of up to 18% in the residential and commercial rates for garbage and recycling collection.

The proposed rate increase was discussed at a public hearing on January 10. The rate increase was effective the following day, January 11, 2011. The offical notice announcing consideration of a rate increase, along with more information, is located here.

Solid waste collection rates are adopted each year, and proposed rates are developed by the Board of Directors of the South Bayside Waste Management Authority (SBWMA - the joint powers agency which oversees various cities' contracts for solid waste collection).

The 2011 rate increase is based on a financial evaluation of 2010 actual operating costs and revenues for last year's carrier, Allied Waste, and projected operating costs and projected revenues for Recology San Mateo County, the new carrier which began service on January 1, 2011.

The rate increase of up to 18.0% is based on these factors:

10.1%
Increase in costs for providing new collection services in 2011 with Recology
15.0%
Increase in costs for collection services provided in 2010, including balancing the account with Allied (the 2010 collector) to meet the contractual revenue level (primarily due to increases in Allied’s employee costs and disposal fees, and revenue shortfalls from loss or downsizing of commercial customers)
2.5%
Revenue reduction due to known can size reductions (based on the number of customers who have indicated they will use smaller cans, which are charged at a lower rate, resulting in lower revenue)
2.2%
Additional revenue shortfall due to projected 2011 can size reductions (based on the projection of how many customers will change to a smaller can size in 2011)
-11.8%
Use of the City's rate stabilization fund to reduce the overall cost impact on customers

Questions about the rate increase can be directed to 650-780-7210. More information and the offical notice announcing consideration of the rate increase is located here.

 

 

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