Item B: Solid Waste Collection/Fee Structure

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ATTACHMENT D Planning & Development Building & Permit Services City of Eugene th 99 West 10 Avenue M Eugene, Oregon 97401 EMORANDUM (541) 682-5086 (541) 682-6806 FAX www.eugene-or.gov Date: July 3, 2007 To: Mayor Piercy and City Council From: Nancy Young, 682-6849 Solid Waste Analyst Subject: Solid Waste Disposal Fee Increase On June 13, 2007 the Lane County Board of Commissioners approved a disposal fee increase of $20 per ton -- from $45 to $65 per ton, for a 44 percent increase -- at Lane County sites. The fee will be effective September 1, 2007 and includes $3.50 per ton for waste diversion programs to increase the overall recovery rate for Lane Wasteshed. This is the first disposal fee increase in 12 years, and will affect waste haulers throughout the area, as well as homeowners and others using the Glenwood drop off and other Lane County transfer stations. Disposal fees comprise roughly one-third of the expenses for solid waste collection in Eugene. While this higher disposal fee will have a significant impact on Eugene haulers and their customers, it could also improve recycling and contribute to the Council's Sustainability Initiative. Lane County's disposal rate has been lower than many other jurisdictions in Oregon; the new rate is comparable to what is charged in many communities throughout the state. Higher disposal rates encourage aggressive recycling and waste diversion -- especially among commercial accounts with larger containers. Background The City of Eugene began regulating solid waste collection in 1960 to standardize service throughout the city. In 1989, council adopted an ordinance establishing rate-setting criteria and restricting the number of licenses available to hauling companies. These provisions were intended to promote stable collection by encouraging continued local ownership, reduce the number of licensed companies from a high of more than 20, and prevent both rate-gouging and cost-cutting. In addition to Eugene Code standards, the Eugene Charter prohibits establishing a franchise with a single company. Local haulers are licensed by the City, and pay a license fee of two and a half percent on residential service and six percent on commercial service, based on a percentage of their gross revenue, less the County disposal fee. Licenses are granted for a rolling five-year term, and cover solid waste and recycling collection for residential customers and solid waste for commercial customers. This five-year term was created to help companies obtain financing for large capital expenses. Currently, there are seven licensed haulers in Eugene. Waste prevention has been highly valued by the citizens of Eugene. Eugene is the only city in Oregon that provides a rebate to customers for recycling. For more than ten years, residential collection rates have been “progressive,” which means they do not discount for higher volumes. Commercial rates went progressive in 2003. Eugene haulers began offering commingled recycling to customers in 2004. This