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2019_08-27_PWETCpacket
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2019_08-27_PWETCpacket
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8/23/2019 11:12:45 AM
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8/23/2019 11:11:44 AM
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Commission/Committee
Commission/Authority Name
Public Works Commission
Commission/Committee - Document Type
Agenda/Packet
Commission/Committee - Meeting Date
8/27/2019
Commission/Committee - Meeting Type
Regular
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offered a new rate which was twenty cents higher than the proposed contract rate for 2017 ($2.56 <br />for no revenue sharing vs $2.36 with revenue sharing). At that time, we had seen some reverse <br />revenue months (where the revenue did not cover the full processing costs), but not enough to <br />justify an additional $37,441 in base costs. <br />Given the significant increases in the additional monthly costs to cover the processing costs, staff <br />contacted Eureka about pricing options if the City were to remove the monthly risk associated <br />with the current commodity market and the revenue share. Eureka provided a $1.00/dwelling <br />unit/month increase (for 2019 an increase from $2.46 to $3.46). The City currently has 15,755 <br />units, which equates to $189,060 in increased base service cost for 2019. The increased cost for <br />2020 would be $192,841 that includes the 2% annual escalator. Through July 2019, the City has <br />paid Eureka $42,086 to cover processing costs that historically were paid for by the revenue <br />share. <br />Recommended Action: <br />Receive presentation by staff and provide feedback and possible recommendations to the City <br />Council. <br />Attachments: <br />A. Recycling Revenue Summary Jan 2006 — July 2019 <br />B. Recycling Rate Cost Comparison <br />
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