Item B: Solid Waste Collection/Fee Structure

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brought efficiencies to recycling collection service, and increased recovery. In addition, by contracting with large material recovery facilities in the Portland area, the haulers have increased the amount of revenue received for recycled material – a factor taken into consideration during rate reviews. Rate Setting in Eugene Collection rates are set through administrative order by the City Manager, and are reviewed regularly. Following an examination of local conditions and best practices in other communities, an advisory committee in 1998 recommended that: ? Rate analyses set the rates based on the financial information on the largest hauler. ? A new financial reporting mechanism be designed so information could be provided in a standardized format. ? A target rate of return for licensees be set at 11 percent. In 2001, council directed the City Manager to change the method of solid waste and recycling rate collection by blending residential and commercial rates. This change has had the desired effect of minimizing rate adjustments for residential customers, whose collection costs are higher. Residential rates have not been increased since 2001, and commercial rates were last increased in 2003. 2007 Rate Review Given Lane County’s action of increasing the disposal fee, staff will be posting an amendment to the administrative order to add that charge to Eugene’s collection rates to be effective on September 1, 2007. The monthly rate increase for a 32-gallon container collected on a weekly basis would be $1.10, or $20.30, up from $19.20. This includes $1.50 for the recycling rebate. For commercial containers, the fee would increase by $10.85 per cubic yard per month. An administrative order will be publicized and provided to interested parties the week of July 9 to reflect the disposal fee increase, with an anticipated adoption date of September 1. The disposal fee is a pass-through expense, and is not included in the calculation for the return to haulers targeted through Eugene’s rates. In addition to the pass through increase, staff is conducting a full rate review of the solid waste and recycling rates. Staff regularly receives financial information from licensees and evaluates it. Our initial analysis indicates that to maintain the model adopted in 1998, an additional increase would be necessary. If you would like additional information on the rate process, please contact Nancy Young, Solid Waste Analyst, Planning & Development Department, 682-6849, or nancy.a.young@ci.eugene.or.us.