HomeMy WebLinkAboutAgenda Item - 2025-10-07 - Number 12.1 - Presentation - Solid Waste Rates 12. 1
City Manager ' s Office
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Republic Services Annual Rate Review
October 7 , 2 0 2 5
Solid Waste & Recycling Collection Services
Republic Services has three lines of business in Lake Oswego :
• Residential garbage, recycling, and mixed organics (yard debris +
food scraps)
• Commercial garbage, recycling, yard debris, and organics (food
scraps)
• Industrial drop box/roll off compactor
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Annual Rate Review
Rate adjustment considerations :
• Reasonable rate of return or fair operating margin for Franchisee
(target of 10%, allowable range of 8 — 12%)
• Cost of performing services provided by the Franchisee and any
anticipated increases in costs
• Needs for equipment replacement or new equipment
• Rates in other cities in the Metro area
• Other factors deemed relevant by the City Council
Methodology
Reported results were analyzed and compared with operational
data to assess :
• Productivity
• Revenue
• Disposal Expense
• Other Direct Costs
• Administrative Expenses
• Allocations
2024 AdjustedFranchise Results
Table 1 : 2024 Lake Oswego Adjusted Franchise Results
Cost Component Roll Cart Container Drop Box Total
Revenues $6,213,658 $3,3'13,466 $1 ,718,949 $11 ,246,0703
Allowable Costs for Rates $5,517.326 $2,604,221 $1 ,557,970 $9,679,517
Franchise Income $696,332 $709,245 $ 160,979 $1 ,566,556
Return on Revenues 11 .2°0 21 .4°0 9.4°o 13.9%
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Projected Results
Application of known and measurable cost to the current rates :
• Driver Wages — 3 . 9% increase based on the labor contract with
Clackamas County Sanitary Truck Drivers Association
Administrative Wages — Estimated 5% increase
• Metro Waste Disposal Rate Increase - 5 . 5% increase in July 2025
• Disposal fee increased by $8.47 per ton
• Inflation — 2 .35% increase based on CPI West — Size Class A all
items
• CNG Tax Credit — 61 . 6% increase in fuel costs due to expired CNG
Tax Credit
2025 Projected Franchise Results
Table 4: Projected 2025 Results by Service
Roll Cart Container Drop Box Total
$6,460,840 $3,424,639 $1 ,776,601 $11 ,662,080
$5,698,718 $2.726.381 $1 .645.506 $ 10,070,605
$762,122 $698,258 $131 ,095 $1 ,591 ,475
Return on Revenues 11 .80% 20.39°o 7.38°o 13.65%
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Proposed Updates to Rate Schedule
• Restructure bulky waste rates
• Pause recycling contamination fees
• Restrict Extra Yardage fee to garbage containers only
• General cleanup
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Proposed BulkyWaste Collection Rates
Bulky Waste Collection Rates
Type of Service Rate
Extra large items: (entertainment center, sectional couch, king size mattress $39.00
including box spring)
Large Items: (recliner, dresser, couch, other size mattress including the box $27.00
spring)
Medium Items: (desk, bookshelf, chair) $15.00
Small items: (pallet, end table, bicycle) $11.00
Appliance items — coolant containing: (freezer, refrigerator, portable air $26.00
conditioner)
Appliance items: (BBQ grill, stove, washer, dryer) $16.00
Electronics: (television, laptop, printer) $10.00
Tire: (passenger vehicle, tire off the rim) $23.00 first tire,
each additional
is $15.00
Pick Up Fee * applies to each service request $16.00
Pick Up Fee is applied as a flat rate regardless of the number of items for disposal.
Pick Up Fee is billed regardless of whether the item(s) are onsite at time of agreed upon pick
up. Standard Call Back rates apply if the customer does not set out as directed.
Contact your garbage & recycling company to confirm schedule availability and pricing. Items
not listed will be billed Standard Pick Up Fee and a Cost Per Item Rate based on the
size/material type.
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