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If the new solid waste services agreement is passed, solid waste collection rates will increase beginning January 1, 2020 to fund state-required services. California’s solid waste legislation requires the City of Orange to introduce new solid waste services to remain in compliance with state law. Through recent legislation (including State Assembly Bill 341, State Assembly Bill 1826, State Assembly Bill 1594, and State Senate Bill 1383), the state has increased recycling requirements for recyclables and organics. The current and future mandates are not funded by the state, so they must be funded through solid waste rates.
You can click here to see a comparison of the current 2018 rates for typical residential and commercial services with those proposed for January 1, 2020, and projected increases for future years.
The state has increased recycling requirements for recyclables and organics through recent legislation (including State Assembly Bill 341, State Assembly Bill 1826, State Assembly Bill 1594, and State Senate Bill 1383). These state mandates affect businesses, residents and other overall waste disposal industries. Residents will see expanded disposal services to include organics material (food and green/yard waste). Residential ratepayers will see an increase in their waste collection services in the first year, followed by an annual cost adjustment to reflect typical operating cost increases of the waste hauler.
The City of Orange has worked with CR&R Incorporated (CR&R) as its exclusive solid waste franchisee since July 2009 and has been fortunate to have among the lowest solid waste collection rates in the County. By partnering with the existing waste hauler, CR&R, the City is able to economically meet state requirements while minimizing impact to residents.
The City and CR&R are working collaboratively to smooth in rate increases for ratepayers while providing expanded services for residents. CR&R has the capability to immediately begin processing the new organic recyclables. Proactively addressing state mandates will allow for a phase-in of new costs and minimize future volatility of waste disposal service costs. CR&R’s organics recycling capability will allow residents to use a single green bin to recycle both yard waste and food waste. This will hold the number of waste bins at three for residents, versus adding a fourth separate bin for just food waste.
These State regulations are impacting all cities across California and are requiring cities to take action to find solutions and remain in compliance.
The new requirements do not take effect until 2020. The City is seeking a new solid waste services agreement now to remain in compliance with state mandates when they take effect. For more information regarding the State unfunded mandates please visit CalRecycle’s website click here.
The current and future State unfunded mandates increase recycling requirements for recyclables and organics.
State Assembly Bill 341 – Requires businesses to recycle if they generate four or more cubic yards of commercial solid waste per week. It requires apartment complexes to recycle if they have five or more dwelling units.
State Assembly Bill 1826 – Requires businesses to arrange for organic recycling services if they generate four or more cubic yards of commercial solid waste per week. It requires apartment complexes to arrange for organic recycling service if they have five or more dwelling units. If the state does not meet its organic recycling goals, California’s Department of Resources Recycling and Recovery (CalRecycle) can require a more stringent threshold to two or more cubic yards of commercial solid waste per week.
State Assembly Bill 1594 – Mandates that green waste used for Alternative Daily Cover (ADC) at landfills will no longer be considered diversion as of January 1, 2020. As a result, the County of Orange will no longer use green waste as ADC at its landfills and therefore must now charge for its disposal.
State Senate Bill 1383 – mandates that California reduce organic waste by 50% by January 1, 2020, and 75% by January 1, 2025. It mandates that cities increase edible food recovery by January 1, 2025. As a result, organic waste will no longer be able to be disposed of in the landfill. Unfortunately, the cost to separately process organic waste is significantly more expensive.
For more information regarding the State unfunded mandates please visit CalRecycle’s website click here.
The rates include a monthly charge for automated curbside, bin collection, and roll-off box service. The rates represent the estimated maximum amount CR&R may charge ratepayers for all labor, equipment, materials and supplies, taxes, insurance, bonds, letters of credit, overhead, disposal, transfer, profit, and all other things necessary to perform all the services required by the solid waste services agreement.
Single family and multi-family dwellings with cart service are charged a base rate, which includes a refuse cart, a recycling cart, and an organics recycling cart. Customers may choose to take additional carts for an additional surcharge. Commercial customers and multi-family dwellings with bin service are charged a monthly rate based on the number and size of bins, and the number of weekly pickups.
The rates also include street sweeping services. CR&R had been the street sweeping provider for the City since 2012. Integration of street sweeping into the overall CR&R rates provides economy of scale to the City and leverages CR&R familiarity with Orange to provide a most positive community experience. The frequency of street sweeping services will remain unchanged.
The new solid waste services agreement includes a clearly defined formula for adjusting the rates for inflation in labor, fuel, vehicle, insurance, and other operating costs as well as adopted increases in the wholesale cost of disposal. Each rate adjustment includes an annual CPI adjustment represented over a six-month period. The residential and commercial rates are proposed to be automatically adjusted each year on July 1 over a period not to exceed five years based on the defined formula pursuant to Section 53756 of the Government Code. The new agreement also includes adjustments to commercial Bin and Roll-Off Rates due to extraordinary changes in the solid waste State landscape.