Trash Fees to Increase on July 1

The City Council approved a 2.7 percent rate hike for solid waste collection services through Mill Valley Refuse Service, meaning monthly fees will go up by about $1 for an average household.

The cost of a typical 32-gallon garbage can, including recycling and green can service, will soon cost $36.66 per month – an increase of $1.02 for “Flat Area” service. “Hill Area” service will cost $44.35 per month – an increase of $1.17.

“We’ve had an outstanding relationship for decades that allows Mill Valley Refuse Service to request an increase in rates due to consumer prices,” Vice-Mayor Shawn Marshall said as the City Council passed the resolution as part of the consent agenda at Monday night’s meeting. “They may annually ask for that increase. We have no objections.

Last year, the city also approved a 2.8 percent rate increase effective July 2012, which was significantly less than the 4.3 percent increase Mill Valley Refuse had requested.

“Upon receipt of the rate application, the city requested that consideration of the rate increase be supported by a formal rate review, the prior formal rate review having been performed in 2009,” according to the staff report.

The city hired R3 Consulting Group, and negotiated the 2.8 percent increase based on the study. 

The formal review was triggered, in part, by a 14 percent increase in 2011 where fees went by about $4.50 per household and an 11 percent increase in 2010.  At the time, Mill Valley Refuse Service Principal Jim Iavarone blamed a number of factors for the rate hike request, including higher fuel costs, rising workers compensation costs and larger fees from the Redwood Landfill where its trash goes.

In addition to the formal rate reviews, Mill Valley Refuse can ask for an annual rate adjustment based price index changes, which accounts for the 2.7 percent increase that begins next month. It’s based on the 12-month Consumer Price Index for the San Francisco-Oakland-San Jose metropolitan area.

The city has a rolling 10-year term agreement with Mill Valley Refuse, meaning if the agreement is terminated, it will still continue for nine more years after the notice is given. Marshall, Councilmember Stephanie Moulton-Peters, City Manager Jim McCann and Finance Director Eric Erickson are in the process of working out a revised franchise agreement, which will come before the City Council in the next few months.

Mill Valley Refuse provides residential garbage, recycling and green (including compostable) waste collection services as well as commercial garbage and recycling collection and construction debris box services. The waste management firm also does street sweeping and garbage, recycling and debris box collection for the city’s corporation yard.

In addition, Mill Valley Refuse plans to start providing an optional multiple-day compost service for businesses. This was not possible before because the compost permit at Redwood Landfill restricted the amount of food waste that could be mixed with yard waste, but that’s expected to change at the end of the summer.