BACKGROUND/DISCUSSION:
Waste Connections has requested a 5% increase for City residential and commercial trash service. Per our contract, rates can be adjusted annually to reflect changes in the Consumer Price Index (CPI) category for "All Urban Customers, Garbage and trash collection in the U.S."
Overall CPI for all goods and services rose 8.2% from September 2021 to September 2022. For the same period, CPI for urban cities garbage and trash collection rose 5.4%.
Recent past rate changes are:
2017 1.85% increase for all accounts
2018 3% increase for all accounts with a contract extension of 1 year
2019 New contract thru 10/31/24, optional 2 year extensions
2020 2% rate increase on all accounts
2021 2.97% rate increase for residential and commercial trash service
FINANCIAL IMPACT:
A 5% increase would add .65 cents per month (pre-tax) to residential bills for a monthly service fee of $13.60. With tax the total monthly bill would be $14.72. Current rates for each category of commercial dumpster and roll-off services would also increase by 5%. See exhibit "WC Proposed 5% Rate Increase".
RECOMMENDATION:
City Council Discretion.