Item B: Solid Waste Collection/Fee Structure

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ATTACHMENT B History of Solid Waste & Recycling Collection Rate Setting in Eugene 1980 An ordinance was adopted changing the rate setting from resolution to ordinance. 1989 City Council adopted an ordinance that changed rate setting from ordinance to administrative rule, establishing minimum-maximum rates; set rates to encourage recycling and implementing a $1.50 recycling rebate in residential rates to customers who recycled; and limited the number of licenses to those active on January 1, 1989. 1991 Staff conducted a cost of service study. One outcome of the study was a separate rate structure for commercial service and for residential service, both of which were based on cost by service category. Rates based on cost by service category result in a higher rate-per-pound for low volume service than for high volume service. 1992 As recommended by the Solid Waste and Recycling Board, City Council adopted a policy to implement progressive residential collection rates to comply with the 1991 Oregon Recycling Act. 1994 For the commercial sector, results of the 1994 study suggested hauler profits exceeded the range recommended by the Collection Rates Committee. As recommended by the Committee, the City Manager addressed this issue by holding commercial rates constant while increasing the commercial license fee and implementing a commercial recycling requirement. 1996 In response to a request for a rate increase by three residential haulers, staff conducted a rate review. Residential rates were increased. 1998 An independent consultant was engaged to assist with a solid waste and recycling rate study. In addition, a staff advisory committee (Rates Advisory Committee) was formed to provide feedback to staff on methodology and policy assumptions. As a result of the 1998 rate analysis, future analyses set the rates based on the largest hauler, haulers provide data in a reporting mechanism that standardizes the information, the target rate of return was set at 11 percent, and staff examined the possibility of implementing collection districts as a strategy to contain rates. 2000 The driving force of the 2000 residential rate review recommendation was the movement of customers to smaller containers. Implementation of yard debris service was set for September 2000. No change in commercial rates. 2001 Residential and commercial rates were to be combined for purposes of rate calculation. There was an understanding that residential rates would not be raised for at least the next review period. 2002 While recommending maintaining residential rates at their current level, commercial rates were reformatted to provide progressivity based on volume and frequency and increased to provide the 11 percent profit calculated on the entire customer base. This increase went into effect July 1, 2003. 2004 There was no need for a rate increase in 2004. The rate stabilization is a result of Council direction in 2001 to combine residential and commercial expenses for the purposes of rate calculation. 2006 No adjustment was made to the collection rates as a result of the 2006 rate analysis. The decision was made to conduct another rate analysis in 2007 and use a three year projection factor in determining rates. 2007 Due to a $20 per ton disposal fee increase by the Lane County Board of Commissioners that will be effective on September 1, 2007, an increase to City rates will be implemented to cover that cost. The analysis for the collection portion of the rate is ready for implementation under existing rules.