AgdaPkt 2012-01-09 - Laserfiche WebLink

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7.A. - Page 3 Three things must be accomplished by this rate increase: (1) pay shortfall from 2011; (2) pay for increases in Recology's costs in 2012; and (3) pay additional projected shortfall anticipated by changes to smaller can sizes. Additionally a fourth component, household hazardous waste collection, is proposed to be introduced. Following is a summary of the contributing factors to the proposed rate increase: 2.3% Costs for providing collection services in 2012 2.9% Costs for collection services provided in 2011 .61 % Revenue Requirement for New Door-to-Door Household Hazardous Waste Collection Service 2.0% Additional revenue shortfall due to projected 2012 can size reductions 7.81 % (Proposed rate increase) The rate adjustment is determined by comparing the amount of projected revenue and the total relevant cost obligations of the City of Redwood City. The difference or shortfall determines the amount of the rate adjustment. The 2012 Rate Year Revenue Reauirement. This is the difference between the 2012 Revenue Requirement, which includes Recology contractor compensation, disposal fees at Shoreway, and Agency franchise and other fees, and the estimated revenue based on 2011 rates. The Estimated 2011 Revenue Reconciliation is an estimate of the 2011 Recology Revenue Reconciliation, which is not required to be paid until 2013 after it is reconciled in 2012. However, it may be prudent to begin including this shortfall in the 2012 rates to avoid a larger future deficit. Curbside Household Hazardous Waste Collection. Also proposed is participation in the household hazardous waste collection program administered by the SBWMA. The program provides for door-to-door collection of household hazardous waste, electronic waste, and sharps. This proposed new program was explained by representatives of SBWMA to the Council Utilities Committee at their meeting of November 9, 2011. The Utilities Committee members directed staff to bring the issue before the entire City Council for consideration. The program would be put into effect in the first part of March, which would allow SBWMA staff the months of January and February to perform outreach and program education to our residents. Estimated costs are 41 cents per residential unit per month, or approximately $5.00 per year, and the cost is shown as .61 % of the 7.81 % rate increase to meet the proposed 2012 revenue requirement. Public Notice and Outreach. Many public agencies follow the procedural provisions of Proposition 218 when increasing solid waste rates, though there is some legal