Solid-Waste Management Franchise and Rate Information

Solid Waste Management Ordinance and Administrative Rules

On Jan. 1, 2024, Ordinance No. 883 became effective for the City of Wilsonville’s solid waste collection and disposal franchise agreement with Republic Services of Clackamas and Washington Counties. Ordinance No. 883 replaces the prior version, Ordinance No. 814 of 2018.

The City Council’s adoption of Ordinance No. 883 on Nov. 6, 2018, resulted in the approval of an updated set of administrative rules also effective Jan. 1, 2024, which may be modified by the City Manager to more efficiently account for changes in rates or services.

Current Solid Waste Management Ordinance No. 883 (2023) (replacing prior Ordinance No. 818): An Ordinance of the City of Wilsonville Amending the Franchise Agreement for Solid Waste Management and Collection Within the City Created By Ordinance No. 814 and Repealing Ordinance No. 814.
Prior Solid Waste Management Ordinance No. 814 (replaced by Ordinance No. 883): An Ordinance of the City of Wilsonville Creating a Franchise Agreement for Solid Waste Management and Collection Within the City and Repealing Ordinance Nos. 204, 281, 424, And 443 And Resolutions Nos. 1077 And 2566.
Solid Waste Management and Collection Administrative Rules, Effective January 1, 2024: Regulations that implement Solid Waste Management Ordinance No. 883 to govern solid waste collection and disposal services in the City of Wilsonville.

Solid Waste Rate Schedule

On Feb. 22, 2024, the City Council adopted via Resolution No. 3124 an amended Rate Schedule effective Feb. 1, 2024.

Republic Services Rate Schedule for Collection and Disposal of Solid Waste, Recyclables, Organic Materials and Other Materials (Effective February 1, 2024, Amended on February 22, 2024): Complete schedule of services and rates for residential and commercial/industrial customers located in the City of Wilsonville.

ROLL CART SERVICE RATES – Effective Feb. 1, 2024
Residential Single-Family Dwellings and Condominium Communities

Residential Single-Family Dwelling Garbage Cart Rate per Month

Includes 65 gallon recycling cart, 18 gallon glass recycling bin, and 65 gallon yard debris/organics cart service.

20 gallon $23.20

35 gallon $30.56

65 gallon $39.75

Charbonneau Garbage Cart Rate per Month

Charbonneau District only is yard debris/organics exempt due to privately-paid district-wide landscaping debris removal service; includes optional 65 gallon recycling cart and 18 gallon glass recycling bin service.

20 gallon $20.21

35 gallon $23.95

65 gallon $33.67

Add Optional 65 gallon yard debris/organics cart service $8.52

Condominium Garbage Cart Rate per Month

Includes 65 gallon recycling cart, 18 gallon glass recycling bin, and 65 gallon yard debris/organics cart service.

20 gallon $23.20

35 gallon $30.56

65 gallon $39.75

Recycle+ Opt-In Additional Recycling Collection Service Rates

Base Charge * (billed monthly) $2.50

Curbside Collection placed within 3 feet of street (each time/occurrence) $9.25

Non-Curbside Collection* placed 5-150 feet from street (each time/occurrence) $11.70

Non-Curbside Collection * placed over 150 feet from street (each time/occurrence) $13.00

* Non-Curbside Collection Receptacle is placed in mutually agreed-upon location, such as the door step next to the garage, on the front porch by door, etc.

Alternative and Special Collection Services Rate

On Call (per each pick-up/service) $12.87

Recycling Only (monthly fee; 1-month minimum service) $11.53

Yard Debris/Organics Only (monthly fee; 1 month minimum service) $8.52

Recycling & Yard Debris/Organics Only (monthly fee; 1-month minimum service) $17.58

HISTORICAL RECORD OF CHANGES TO SERVICES AND RATES, 2018 - CURRENT

CHANGES EFFECTIVE FEB. 1, 2024

Feb. 22, 2024 – The Wilsonville City Council adopted Resolution No. 3124, A Resolution of the City of Wilsonville Adopting the Findings and Recommendations of the 2023 Solid Waste Collection Rate Report, Amended January 2024, and Modifying the Republic Services Rate Schedule for Collection and Disposal of Solid Waste, Recyclables, Organic Materials and Other Materials, Effective February 1, 2024, Amended on February 22, 2024.

Adoption of Resolution No. 3124 modifies a section pertaining to Commercial Service Rates of the 2023 Rate Report and 2024 Republic Services Rate Schedule, effective Feb. 1, 2024, in effect reducing certain commercial rates that were adopted on Dec. 18, 2023. See 2023 Solid Waste Collection Rate Report, Amended January 2024; and Republic Services Rate Schedule for Collection and Disposal of Solid Waste, Recyclables, Organic Materials and Other Materials, Effective February 1, 2024, Amended on February 22, 2024.

Dec. 18, 2023 – The Wilsonville City Council adopted Resolution No. 3091, A Resolution of the City of Wilsonville Adopting the Findings and Recommendations of the Solid Waste Collection Rate Report, October 2023, and Modifying the Republic Services Rate Schedule for Collection and Disposal of Solid Waste, Recyclables, Organic Materials and Other Materials, Effective February 1, 2024.

Adoption of Resolution No. 3091 has the effect of increasing many rates by an average of 5%, with certain services increasing at greater rate by customer type:

Residential service: Rate increase averages 9.2% (range is 8.8% to 9.5%, depending on size of the cart).
Commercial service: Rate increase averages 7.5% (range is 6.7% to 8.0%, depending on size of the container).
Industrial service: Rate increase averages 5.0%.

A modified 2023 Solid Waste Collection Rate Report, Amended January 2024, found that Republic Services’ composite rate of return for 2022 was 10.8%, and that projected composite rate of return for 2023 is 5.73%. Republic Services submitted a written request for an Extraordinary Rate Increase to the City because franchisee’s projected composite rate of return for 2023 is well below 8%, per Article VIII, Section 4 of Ordinance No. 814 (“It is the goal of this Franchise to provide Franchisee with a target Operating Margin of [10%] of Gross Revenues, but no less than [8%]”). While the Rate Report found that the rate of inflation for 2023 is 3.37% for general expenses, allowable expenses are increasing by 6.8%., and a number of expense categories that are increasing at rates higher than the rate of inflation, 3.37% for 2023, including Union Driver Wages - 6.90%; Recycling Processing - 27.1%; Waste Disposal - 8.92%; and, Health Insurance - 6.90%.

Concurrent with the rate modifications, two new recycling services are also being offered to Wilsonville residents, effective Jan. 1, 2024. One is the ability to recycle small batteries of various types that are placed in baggies in the glass recycling bin. The other new service called Recycle+ is an optional, add-on service that allows residents to recycle hard-to-recycle items like hard plastic clamshells.

CHANGES EFFECTIVE JAN. 1, 2023

Nov. 7, 2022 – The Wilsonville City Council adopted Resolution No. 3004, A Resolution of the City of Wilsonville Adopting the Findings and Recommendations of the ‘Solid Waste Collection Rate Report, October 2022’ and Maintaining the Current Republic Services Rate Schedule for Collection and Disposal of Solid Waste, Recyclables, Yard Debris, Organic Materials and Other Materials, Effective January 1, 2022.

Adoption of Resolution No. 3004 has the effective of maintaining current solid waste collection and disposal rates dated Jan. 1, 2022, for all classes of customers during 2023.

The Solid Waste Collection Rate Report, October 2022, found that solid waste Franchisee Republic Services Rate of Return (“ROR”) adjusted for 2021 had a composite revenue of 15.8%, well in excess of the allowable range of 8% to 12%, with a target of 10% ROR. The Report finds projected 2022 financial performance with a composite net margin of 9.8%, which is essentially on the mark for the target ROR of 10%. While residential and commercial lines of business fall below the target ROR, the industrial category exceeds the allowable range, resulting in a composite ROR just under the 10% target and within the 8%-12% acceptable range for ROR. Therefore, the Report recommends maintaining current rates for all three classes of solid-waste customers, including residential, commercial and industrial customers. Exhibit 2 to Resolution No. 3004 contains the current solid waste collection and disposal rates of 2022 that are to be maintained during 2023.

CHANGES EFFECTIVE JAN. 1, 2022

Nov. 15, 2021 – The Wilsonville City Council adopted Resolution No. 2931, A Resolution of the City of Wilsonville Adopting the Findings and Recommendations of the "Solid Waste Collection Rate Report, October 2021" and Republic Services Rate Schedule for Collection and Disposal of Solid Waste, Recyclables, Yard Debris, Organic Materials and Other Materials, Effective January 1, 2022.

The Nov. 15, 2021, City Council meeting packet included an accompanying staff report to Resolution No. 2931 and exhibits. An Oct. 18, 2021, City Council work session presentation by staff and rate-review consultant summarized key issues presented by the October 2021 rate-review report.

Adoption of Resolution No. 2931 has the result of reducing garbage-collection rates for all Wilsonville residential, commercial and industrial customers and eliminating completely the temporary recycling surcharge. Effective January 1, 2022, the solid waste garbage and recycling rates charged by Republic Services are being reduced for all kinds of customers by five to 10 percent. Additionally, the temporary recycling surcharge that was originally imposed in 2019 and reduced in half in 2020 is now being completely eliminated due to recovery of the domestic recycling market.

An October 2021 rate-review audit found that Republic Services rate-of-return was higher than the allowed eight to 12 percent range with a target of 10 percent. The City Council acted on Nov. 15, 2021, to:

Reduce residential roll cart service rates an average of 4.7 percent.
Reduce commercial container service rates an average of 7.6 percent.
Reduce industrial roll off/drop box service rates an average of 10.1 percent.

The rate reductions are calculated to bring back Republic Services’ rate of return to the eight to 12 percent range of the solid waste franchise.

CHANGES EFFECTIVE JAN. 1, 2021

Dec. 7, 2020 - The Wilsonville City Council adopted Resolution No. 2865, A Resolution Of The City Of Wilsonville Adopting The Findings And Recommendation Of The 2020 Solid Waste Franchise Rate Review Process As Documented In The “Solid Waste Collection Report, November 2020.”

The Dec. 7, 2020, City Council meeting packet included an accompanying staff report to Resolution No. 2865 and exhibits. A Dec. 7, 2020, City Council meeting presentation by staff and rate-review consultant summarized key issues presented by the November 2020 rate-review report.

Adoption of Resolution No. 2865 has the result of maintaining current rates for all classes of customers, including residential and commercial/industrial. The Solid Waste Collection Rate Report, November 2020, finds that the current rates are sufficient to maintain Republic Services at an operating margin higher than the franchise “target margin” of 10 percent, (11.3 percent) but below the 12 percent ceiling. The City Council agreed with the recommendation to keep the current rate schedules unchanged until the 2020 results are submitted and reviewed for the 2021 rate-review report, and thereby continuing current rates effective as of Jan. 1, 2021. The City Council reviewed the Solid Waste Collection Rate Report during the Nov. 16, 2020, work session.

CHANGES EFFECTIVE JAN. 1, 2020

Dec. 16, 2019 - The Wilsonville City Council adopted Resolution No. 2775, A Resolution Of The City Of Wilsonville Adopting The Findings Of The Solid Waste Collection Rate Report Amended December 2019, Creating New Community Recycling Services And City Street-Sweeping Collection/Disposal Service And Reducing The Temporary Recycling Surcharge Rate.

The Dec. 16, 2019, City Council meeting packet included an accompanying staff report to Resolution No.2775 and exhibits. A Dec. 16, 2019, City Council meeting presentation by staff and rate-review consultant summarized key issues presented by the November 2020 rate-review report.

Adoption of Resolution No. 2775 has the result of maintaining current rates for all classes of customers, including residential and commercial/industrial, and reducing the recycling surcharge by half and introducing both new permanent and temporary/limited-duration recycling services. The Solid Waste Collection Rate Report Amended December 2019 finds that the current rates are sufficient to maintain Republic Services at an operating margin of 10 percent, assuming implementation of staff recommendation for recycling services, Public Works street-sweepings and recycling-surcharge rate reduction, which the City Council agreed with the proposed new community-wide recycling services included:

Residential Food-Scraps Collection Program: Allow food scraps to be collected with the yard-debris cart service. This would be an on-going, permanent program with an estimated first-year cost of $21,521 and an estimated start in Q2 2020 (April).
Bulky Waste Pick-up for ADA/Senior Citizens: Wilsonville residents who have a disability or are older senior citizens would be offered home pick-up of large/bulky waste items free of charge. This would be a limited-duration program of one year or less with a budget of $10,000 that estimates 250 pick-ups at an average cost $40 each, with an estimated start in Q1 2020 (February).
Styrofoam Collection/Recycling: Republic Services would set up a collection station at its WRI transfer facility for residents and commercial/industrial customers to deposit clean Styrofoam packaging for recycling. As a new pilot-program, total demand is uncertain; however, both industrial businesses and residents have indicated high interest. Program to be evaluated during next solid waste rate review process. A total of $10,000 is budgeted with an estimated start date in Q1 2020 (March).
Commercial/Industrial Fluorescent Tubes/Batteries Box Mail-Back Service: Businesses would be to obtain at no charge for a limited duration of one year or less “recycling box mail-back” service for 48" fluorescent tubes and batteries. Based on results and feedback to the successful 2017 Wilsonville-Metro Community Enhancement Program project, City staff could determine that greatest demand appears to be for standard 4-foot-long tubes and batteries. A total of $15,000 is budgeted with an estimated start date in Q1 2020 (March).
Commercial Food-Scraps Collection Program: City Council adopted Ordinance No. 837 on August 5, 2019 to codify the Metro-mandated commercial food-scraps collection program that commences in Q1 2020 (March) for the largest food-scrap generators (known as Group 1). This new program would be funded through a “blended-rate” structure similar to all other standard, mandated solid-waste collection and recycling services that would include food-scraps collection. By Metro mandate, the program is expected to grow over the next three years to encompass all sizes of businesses that generate food scraps.

Proposed City Public-Benefit Service:

Public Works Street-Sweepings and Leaf Collection and Disposal: The City is need of collection and disposal services for street-sweepings and leaves, which is required by law. Republic Services is tentatively able to provide these services with DEQ permitting to the City at an estimated annual cost of approximately $85,000, which is approximately $100,000 less than currently budgeted by City for this service. The staff recommendation allows for about $75,000 of rate-of-return margin that would be credited to City for collection and disposal services for street-sweepings and leaves by Republic Services.

Proposed Rate Reduction:

Across-the-Board 50% Rate Reduction in the Temporary Recycling-Surcharge: Analysis shows Republic Services’ current recycling revenue is matching the actual costs, and the change in allowable expenses under the new franchise agreement is the main driver for the reduction of this surcharge. Staff recommendation with Republic Services agreement allows for reducing by half (50%) the temporary recycling-surcharge for both residents (a $1.25/month reduction from $2.50/month to a net charge of $1.25/month) and for commercial firms (a $0.75/yard/number of pick-ups to a net charge of $0.75/yard/number of pick-ups per week). The surcharge modifications started on January 1, 2020.

During the course of conducting the solid waste rate-review process, the City discovered that Republic Services erroneously invoiced commercial customers during part of 2018 and 2019 for the recycling surcharge using an incorrect methodology, one adopted by Clackamas County and not City. The total estimated amount to be refunded/credited to Wilsonville businesses is $161,673.

CHANGES EFFECTIVE JULY 1, 2018

May 21, 2018 - The Wilsonville City Council adopted Ordinance No. 814, An Ordinance Of The City Of Wilsonville Creating A Franchise Agreement For Solid Waste Management And Collection Within The City And Repealing Ordinance Nos. 204, 281, 424, And 443 And Resolutions Nos. 1077 And 2566.

The May 21, 2018, City Council meeting packet included an accompanying staff report to Resolution No.2775 and exhibits. An April 16, 2018, City Council work session presentation by staff summarized key issues addressed by the new Solid Waste Franchise Agreement with Republic Services.

Adoption of Ordinance No. 814 has the result of repealing prior City ordinances pertaining to the solid waste franchise for the collection and disposal of garbage and recycling material, and instituting a new solid waste franchise agreement that includes an annual rate-review/setting process and new administrative rules to govern the franchise agreement. Additionally, the ordinance provided for an increase in rates for all classes of customers and instituted a temporary recycling surcharge due to the severe downturn in global and domestic recycling markets.

Administrative Rules: Rules that explain the kinds of service provided by Republic Services and the obligations of customers in Wilsonville when disposing of garbage and recycling.
Service Rate Increase: Service rates increase by 3.25% beginning July 1, 2018. For most residential customers, that equates to an increase of $0.86 per month.
Temporary Recycling Surcharge: Wilsonville customers are to be charged a temporary, six-month recycling surcharge. For residential customers, the temporary surcharge is $2.50 per month and is to be listed as a separate charge on customer bills.

BACKGROUND TO THE solid waste ORDINANCE CHANGE

The Wilsonville City Council’s 2017-2019 Goals included an administrative directive to “update the solid waste franchise agreement.” The City’s solid waste franchise agreement was first adopted through Ordinance 204 in 1982. Over the past 30-plus years, changes have occurred to the franchise business that provides solid waste collection and disposal services, as well as new services for customer pickup such as yard debris and recycling materials.

After several months of reviewing options during the 2017-18 timeframe, the City Council adopted on May 21, 2018, Ordinance No. 814 to govern solid waste collection and disposal franchise and adopt administrative rules.

PRIMARY CHANGES IN POLICY AND PRACTICE THAT ORDINANCE NO. 814 ADVANCED INCLUDE:

Process for Increasing Rates

Old franchise agreement: Convoluted, six-factor process to determine periodically appropriate changes in rates.
New franchise agreement: A standard Consumer Price Index (CPI) coupled with “rate of return” (or profit) of the franchisee to determine any change in rates. The standard industry rate of return is 8-12%, with a target of 10%.

Operating Margin	Change in Rate
Below 8% (and no extraordinary rate increase)	125% of CPI
8%-10%	100% of CPI
10%-12%	75% of CPI
More than 12%	No Adjustment

Updates and Changes to Service

Old franchise agreement: Required cumbersome processes for amendment to updates for new services or changes in rates.
New franchise agreement: Provide clearer guidance and expectations of service and performance, and allow more flexibility and more immediate response to changes in service, particularly in the adopted Administrative Rules.

Insurance Requirements

Old franchise agreement: Insurance requirements were low and did not require key insurance such as commercial general liability or pollution coverage.
New franchise agreement: Increased insurance requirements to better insure against possible liabilities. New insurance requirements include:
- Commercial General Liability Insurance: $5 million/$10 million; $50,000 fire damage; $10,000 medical expense
- Pollution Legal Liability (PLL): $2 million/$6 million
- Auto: $5 million
- Workers Compensation: $1 million

Delineated Allowable Expenses

Old franchise agreement: Lacked clarity regarding if certain expenses were eligible to be counted against the rate of return or profit generated.
New franchise agreement: Clarifies what expenses are and are not eligible costs against the rate of return.

True-up of Rates and Rate of Return

Old franchise agreement: Lacked a mechanism to allow a thorough review of the franchisee’s finances in order to determine the actual rate of return.
New franchise agreement: Provides for a City financial review to determine the actual rate of return that has an effect on the rates that franchisee charges.

Franchise Fee

Old franchise agreement: A 3% franchise fee for the franchisee’s exclusive right to operate in the City. Other City franchise fees are generally in the 4% to 7% range; a 2012 survey conducted by the League of Oregon Cities found that 40% of Oregon cities charge a 5% fee.

New franchise agreement: Increase the franchise fee to 5%, which will help defer City expenses to administer the franchise and to properly compensate the City for the franchisee’s exclusive right to operate in the City; however, the City Council deferred enacting the franchise fee increase until a later date.

Earlier Termination:

Old franchise agreement: Rolling 3-year terms that renewed automatically every year for another three-year term.

New franchise agreement: A fixed 10-year term with two 5-year options to renew.

Customer Service:

Old franchise agreement: Did not address issues regarding customer service.

New franchise agreement: Requires a bi-annual report of services provided; communication, marketing, and educational outreach; and customer complaints and franchisee responses. New administrative rules address customer service issues such as customer complaints, disputed billing, and missed collection; also addresses community education and outreach

Compliance

Old franchise agreement: Did not provide rules for how to prepare and set out containers, nor provide a list of appropriate and inappropriate materials for waste, recycling and yard debris collection services; rules about setting out containers were found in various resolutions regarding rate increases adopted over time.
New franchise agreement: The new administrative rules provide one place to find the information a customer should need for proper preparation and service.