Athens Services has requested a 5.66% rate increase, which will be considered by the Monrovia City Council on Tuesday, Aug. 4.
As a part of the Exclusive Franchise Agreement (EFA) between the city and Athens, the Closed Loop Organics Recycling Program created a phased in program for compliance with organic waste recycling. The phased in approach began early with the largest generators of green and organic waste in 2017 and expanded to different customer segments every year. As of Jan. 1, 2020, AB1594 requires all green and organic waste that is generated in Monrovia to be separated from the traditional waste stream and recycled. Prior to January, green and organic waste was sent to several facilities throughout Southern California but now, all green and organic waste will be transferred to American Organics in Victorville, Calif. for processing.
To transfer all green and organic waste to American Organics, Athens has been developing changes to their operations. While the use of American Organics will ensure that the city maintains compliance with several state regulatory requirements, there will be some operational changes necessary to complete these efforts. While Monrovians will not see these changes in the way that their waste is collected, Athens must ensure that all material is properly sorted and delivered to the facility that is further away. In addition, as the facility is newer and advanced in the way it handles materials, the tipping fees are slightly higher than the other locations that have been utilized. As such, Athens is proposing a rate increase for compliance with AB1594 of 3.64% to cover the costs associated with additional transportation and increased tipping fees associated with recycling these materials.
In addition to the proposed adjustment related to AB1594, the EFA allows for Athens to seek additional adjustments, on an annual basis, related to the Consumer Price Index (CPI) and Minimum Wage.The CPI for April 2020 was 0.70%, which is allowed a 1% markup per the EFA, creating a CPI total request of 1.7%. The requested adjustment related to minimum wage is 0.32%. A summary of the requested adjustment is as follow:
- AB 1594 Impacts: 3.64%.
- Annual CPI Adjustment: 1.70%.
- Annual Minimum Wage Adjustment: 0.32%.
- Total Requested Adjustment: 5.66%.