TO: Honorable Board of Directors
FROM: Chris Celsi, Executive Director
REPORT BY: Chris Celsi, Executive Director
SUBJECT: Increases to Tipping Fees Charged at the Devlin Road Transfer Station
RECOMMENDATION
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Conduct a public hearing and adopt a resolution increasing tipping fees at the Devlin Road Transfer Station.
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EXECUTIVE SUMMARY
The Authority owns and operates the Devlin Road Recycling and Transfer Station (“Transfer Station”) for receiving, processing, and transporting solid waste and recovering recyclable materials from solid waste. The Authority generates revenue needed to pay for construction, operation, repair and maintenance of the Transfer Station by charging “tipping fees” to customers delivering solid waste to the Transfer Station for disposal or recycling, as authorized by Public Resources Code sections 40059 and 41901. The Board has not adopted an increase to tipping fees since 2011, when it adjusted the fees and set an automatic increase of $1.00 per year thereafter.
Over the years, this automatic increase has failed to keep up with inflation. The Authority needs to increase certain tipping fees to pay for increased costs associated with the Transfer Station, including the debt service on the proposed financing of about $20.2 million towards the cost of the new construction and demolition facility. The Authority proposes to increase the following fees for disposal of solid waste at the Transfer Station for Fiscal Years 2025-26, 2026-27, and 2027-28:
Per Ton Tipping Fees
Category Fiscal Years
2024-25 2025-26 2026-27 2027-28
Self-Haul (per vehicle)* $44.00 $45.00 $48.00 $50.00
Franchised Loads $73.00 $81.00 $87.00 $90.00
Non-Franchised Loads $77.00 $85.00 $91.00 $95.00
Clean Dirt $40.00 $45.00 $48.00 $50.00
Concrete - $32.00 $34.00 $35.00
* Self-haul load over 1,000 lbs. pays the per-ton rate for non-franchised loads.
Except for Franchised Loads, the fees for Fiscal Year 2025-26 will become effective on November 1, 2025; the fees for Fiscal Year 2026-27 will become effective on July 1, 2026; and the fees for Fiscal Year 2027-28 will become effective on July 1, 2027. For Franchised Loads, the fees for Fiscal Year 2025-26 will become effective on November 1, 2025; the fees for Fiscal Year 2026-27 will become effective on October 1, 2026; and the fees for Fiscal Year 2027-28 will become effective on October 1, 2027. The fee increases for Franchised Loads are traditionally effective in October because the Authority’s Joint Powers Agreement indicates rate increases are to coordinated with the rate setting process of the member agencies for trash collection to the extent possible.
The tipping fees at the Transfer Station are the lowest in the region, as shown by the chart attached to this agenda item. Even after the increase proposed for this fiscal year, the tipping fees will remain substantially lower than other sites in the region.
This item also asks the Board to waive Section 23 of the Authority Bylaws, to the extent that section requires new or increased fees charged at the Transfer Station to be adopted by the Board in the month of May.
Procedural Requirements:
1. Open Public Hearing
2. Staff Report
3. Public Comment
4. Close Public Hearing
5. Motion, second, discussion, and vote on the proposed resolution
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Fee increase is necessary to pay for operation of the transfer station and debt service on financing for the new C&D Building. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Additional revenue in subsequent fiscal years. |
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Consequences if not approved: |
The Authority will be unable to finance the new C&D Building. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: This activity is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15273(a) as fees necessary to meet operating expenses, to obtain funds for capital projects necessary to maintain existing service, and to meet financial reserve requirements.
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