TO: Honorable Board of Directors
FROM: Chris Celsi, Executive Director
REPORT BY: Chris Celsi, Executive Director
SUBJECT: Discussion Regarding Diesel Fuel Surcharges - Information Item Only
INFORMATION ITEM ONLY
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It is a discussion regarding diesel fuel surcharges and what the Authority is experiencing currently.
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EXECUTIVE SUMMARY
Over the past months, specifically since March 2026, the Authority has seen a considerable rise in the Diesel Fuel Surcharge. By comparison, in FY 2023 - 2024, the average monthly surcharge was $25,465 or an additional $1.11 per ton hauled. In FY 2024 - 2025, the average monthly surcharge was $8,633 or an additional $.36 per ton hauled. In FY 2025 - 2026, the average monthly surcharge was $24,620 or an additional $1.40 per ton hauled. For our current Fiscal Year 2026 - 2027, the average monthly cost is $76,938 or $3.11 per ton hauled. Attached is our Power Point to reflect how diesel fuel surcharges have changed since 2023 - 2024. To address these rising costs, we are seeking a new transportation contract using alternative fuels such as CNG that have historically been less volatile and considerably cheaper in the short and long terms.
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: On August 6, 2020, the Authority adopted the Final IS/Addendum, the mitigation measures and the mitigation monitoring program for the Project pursuant to Resolution No. 2021-02. This subsequent discretionary approval related to the Project does not involve any change in circumstances, project changes, or new information of substantial importance which would warrant further environmental review pursuant to CEQA Guidelines section 15162.