10 Draft Integrated Waste Management Plan - City Council - City of ...

2012 Davis Integrated Waste Management Plan
Direct mail to residential customers for cart pre-order—October 2013
New rates go into effect—December 1, 2013
DWR begins to deliver carts—October 2013
One challenge with a variable can rate, as mentioned above, is that it can increase the contamination rates in
recycling and composting carts. Some cities experienced a spike in contamination of their recycling stream once
a variable can rate is introduced. San Jose went from a 5% contamination rate to about 30% contamination
when they switched to cart service. Alternatively, San Diego has 96 gallon cart service for garbage, recycling
and yard waste and has less than 5% contamination in the recycling carts.
An alternative to the standard variable can rate schedule is a case rate schedule, where residents are charged a
base service rate that covers administration costs, program costs, and the cost to have the solid waste trucks stop
at each house. Additional rates are added for recycling, compost and trash disposal/processing services. This
type of rate structure also avoids one of the major pitfalls of variable can rate systems—loss of revenue source.
With solid waste rates based solely on how much trash a resident throws away, in theory residents could
diverting so much material away from the garbage that there is no longer enough revenue collected to pay for
the recycling and composting of the other wastes. By ensuring that all collection streams are budgeted for in the
rate system, this is not a problem. It is also an equitable system—those with more trash, pay more for trash
service. Residents that have more recyclables pay for more recycling service, etc. Residents that reduce waste
and compost their own materials are rewarded by lower service rates. See Appendix T and U for alternative
rate structures.
8.3
Projected Solid Waste Rates
Solid waste rates are based on CPI adjustments to DWR and YCCL tipping fees. The CPI adjustment is based
on fuel and transportation costs, while the YCCL tipping fees is based on landfill operational costs. The chart
below shows a base rate projection assuming a 3% annual increase, actual rates will be based on deviation base
rate assumptions and City policy decisions that could affect the future rates. Future rate risk factors include
high inflation rates and the State increasing fees that impact local solid waste costs and rates.
FIGURE 8-3 PROJECTED MONTHLY SINGLE-FAMILY SOLID WASTE RATES THROUGH 2020
$40.00
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00
DRAFT
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