CUAC SW Commercial Rates 12032025
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Solid Waste Commercial Rate Review 11/10/25 Presentation Overview – Commercial Overview – Collection Efficiencies – Commercial Cost Factors – Current rate plan – Change to rate structure – Recommendations 2 Commercial Overview 3 Frontload • Business Accounts – 1,075 accounts • Tons Collected – 35,688 Rolloff • Rolloff Services – 3,576 • Tons Collected – 14,216 Commercial Overview 4 •Operations –Businesses/Construction – Frontload and Rolloff –Monday – Saturday Service –Avg. 5 Frontload routes per day, 2 Rolloff routes per day –Avg. 850 avg. stops per day/5,100 stops per week –Rate determined by size of container x days of service Commercial Collection Efficiencies 5 FY25 Efficiency Initiatives • Optimized Routing: Reduced service frequency and increased container sizes to improve route performance. • Overtime Reduction: Balanced routes to ensure timely completion within regular work hours. Ongoing Efficiency Improvements • Saturday Service Reduction: Gradually decreasing the number of Saturday collections to improve cost-effectiveness and scheduling. • Eliminating High-Risk Locations: Removing dangerous or difficult-to-access collection sites for employee safety. • Rollout Service Phase-Out: Transitioning away from rollout service to reduce injury risks and improve operational efficiency. Commercial Cost Factors Major Drivers FY22 Actual FY 25 Actual Difference % Difference Diesel Fuel Cost $126,441 $203,275 $76,834 47% Insurance Costs $180,005 $328,613 $148,608 58% ADEQ Fees $9,894 $20,700 $10,806 71% Vehicle Costs (AFL) $252,308 $425,415 $173,107 51% Salaries and Benefits $1,069,763 $1,414,357 $344,594 28% 6 Current Front Load Rate Structure 7 Based on the 2010 Consultant Rate Study • Three Rate Tiers – 1-2 bins, 3-4 bins, 5+ bins • Fee varies across the size and number of services per week • Various Additional rates/charges - Gates and Castors • Annual percentage increases – FY22 5-year rate • Rate does not tie back to the cost of operations Solid Waste Rate Review – Front Load January 25, 2022 – 5-year Rate adjustment presented First adjustment of 10% effective March 2022 Council approved adjustments: 8 Years Front Load 2023 8% 2024 7% 2025 5% 2026 5% Current Front Load Rate Issues 9 Current Front Load Rate Issues 10 6 CY 12 CY Current Front Load Rate Issues 11 Proposed Front Load Rate Structure 12 Proposed Rate • Simplifies the rate structure • Rate based on a per-yard charge • Two Rate Tiers – 1-4 bins, 5+ bins • Based on Current Costs and Service Proposed Front Load Rates 13 1-4 bins 2 YD 3YD 4YD 6YD 8YD 1x Week $65.00 $70.00 $86.66 $ 129.99 $ 173.32 2x Week $ 259.98 $ 346.64 3x Week $ 259.98 $ 389.97 $ 519.96 4x Week $ 346.64 $ 519.96 $ 693.28 5x Week $ 433.30 $ 649.95 $ 866.60 6x Week $ 519.96 $ 779.94 $ 1,039.92 5+ bins 2YD 3YD 4YD 6YD 8YD 1x Week $65.00 $70.00 $ 73.66 $ 110.49 $ 147.32 2x Week $ 220.98 $ 294.64 3x Week $ 220.98 $ 331.47 $ 441.97 4x Week $ 294.64 $ 441.97 $ 589.29 5x Week $ 368.31 $ 552.46 $ 736.61 6x Week $ 441.97 $ 662.95 $ 883.93 Current Rolloff Rate Structure 14 Based on the 2010 Consultant Rate Study • Service Fee • 30-day Rental period • Additional Fee charged per ton of waste Current Rate Review - Rolloff 15 Years Pull Charge Per Ton Disposal 2023 $247 $30 2024 $258 $31 2025 $268 $32 2026 $278 $33 Proposed Rolloff Rate 16 Years Flat Rate* Disposal Rate 4+ Tons Additional Day Rate 2026 $450 Landfill Min Gate Rate $22.00 2027 $472 Landfill Min Gate Rate $23.50 2028 $496 Landfill Min Gate Rate $24.75 2029 $520 Landfill Min Gate Rate $26.00 2030 $545 Landfill Min Gate Rate $27.50 Recommendations/Consensus 17 • Change and update the rate structure for Front Load Service –Implement recommended rate structure in early 2026 –Implement a 5% rate increase for January 2027 –Council review and recommendations for an additional rate increase plan • Change and update the rate structure for Rolloff Service –Implement the 5-year Flat rate plan with a 3-ton minimum –Reduce rental period to 14 days/ Charge rate for additional rental –Base overage fee on Landfill Minimum Gate Rate 18 •Next Steps •2 Month rate advertisement