TITLE
Title
APPROVE GARBAGE HAULER CURBSIDE LICENSE APPLICATION RENEWALS, FEE INCREASES, AND CONSIDER LICENSE LANGUAGE CHANGES FOR REPUBLIC SERVICES AND GFL ENVIRONMENTAL. APPROVE CHANGE IN SOLID WASTE CUSTOMER BILL OF RIGHTS FOR WRITTEN NOTIFICATION OF FEE CHANGES
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SPONSOR
Sponsor
J. Leslie Bell (Lorelei Elkins)
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BACKGROUND
Background
NCGS 153A-136(a)(4) authorizes the Board of Commissioners to regulate the fees that may be charged for residential solid waste collection in unincorporated areas (attached). The most recent solid waste collection fee increase for garbage haulers (Republic Services, GFL Environmental, and Randolph County Garbage Service) was approved by the Board on August 4, 2022, and set the maximum fee of $25.50/month/household for monthly curbside garbage and recycling pickup. The current garbage hauler licenses conclude June 30, 2025.
The Republic Services curbside collection license renewal application was submitted contingent upon approval of a rate adjustment from $25.50 to $29.50 per month, effective July 1, 2025, and the following language being added to the license:
Option 1: Annual CPI Rate adjustment. The licensed solid waste hauler may increase the rates for all services effective on January 1, 2026, and annually thereafter, in an amount equal to the Consumer Price Index for All Urban Consumer (CPI-U), Garbage and Trash Collection, U.S. County Average, as published by United States Department of Labor, Bureau of Statistics. For the CPI-U calculation, rates will be adjusted using the month of July, trailing twelve (12) months’ average CPI compared to the preceding twelve (12) months.
Option 2: Alternatively, Republic Services is prepared to accept a flat 4% annual rate increase beginning January 1, 2027, rather than an annual adjustment based on the CPI-U for Garbage and Trash Collection, starting January 1, 2026.
The GFL Environmental (GFL) license renewal application was submitted with the request that the fee be increased from $25.50 to $29.34. Additionally, GFL requests that automatic fee increase language be added to the license based on the CPI-U for Garbage and Trash Collection. GFL also requests a fee increase effective July 1st of every year based on the previous December’s Bureau of Labor Statistics CPI-U for Garbage and Trash Collection, and the addition of language to cover any governmental increases beyond their control.
Both Republic Services and GFL Environmental request that the license agreement be adjusted according to the following change in law language:
The licensed solid waste hauler may increase the rates for services as a result of increases in costs incurred due to (a) any third party or municipal hauling company or disposal or recycling facility being used; (b) changes in local, state, federal or international rules, ordinances or regulations; (c) changes in taxes, fees or other governmental charges (other than income or real property taxes); (d) uncontrollable, prolonged operational changes (i.e., a major bridge closure); (e) increased fuel costs; and (f) changes in costs due to a Force Majeure Event. Any of the foregoing cost adjustments shall be retroactive to the effective date of such increase or change in cost.
The proposed monthly rate increases include curbside weekly trash pickup, bi-weekly recycling, and a fee for a 96-gallon vendor-provided container. At each collection company's discretion, backdoor service is available for an additional $3.00 monthly for elderly or disabled residents who require garbage and recyclables collection assistance.
The Republic Services and GFL Environmental license renewal applications and requests are attached.
Randolph County Garbage Service did not submit a license renewal application. When contacted, the owners said they no longer wanted to continue solid waste pickup in Guilford County. A certified letter was sent to remind them of their responsibility to notify their customers of service discontinuation (attached).
Update to the Solid Waste Customer Bill of Rights:
The Solid Waste Customer Bill of Rights states that haulers shall notify their customers in writing at least ten (10) days before any rate increases or decreases. Based on discussions during the March 20 & 21, 2025 Board of County Commissioners’ Retreat, staff recommends increasing the written notification period from ten (10) days to sixty (60) days before any rate increases or decreases (attached).
STAFF RECOMMENDATION:
1. Approve hauler curbside collection license renewal applications, including a monthly fee increase from $25.50 to $29.25 for curbside weekly garbage and bi-weekly recycling pickup. This includes an annual rate increase effective January 1, 2027, based on the July CPI-U for Garbage and Trash Collection described herein, with a 4% cap. Based on the upcoming Solid Waste Management Plan Update findings, revisit the CPI-based increase at the next license renewal (July 1, 2028).
2. Reconsider adding the change in law language at the next license renewal, based on the Solid Waste Management Plan Update findings. This update may identify solid waste trends, needs, and potential legislative impacts affecting curbside solid waste collection in the future.
3. Approve the change to the Solid Waste Bill of Rights written notification for rate increase or decrease from ten (10) days to sixty (60) days.
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BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
1.) Approve hauler curbside collection license renewal applications, including the monthly fee increase from $25.50 to $29.25 per household for weekly garbage and bi-weekly recycling pickup and an annual rate increase effective January 1, 2027, based on the CPI-U for Garbage and Trash Collection, with a 4% cap.
2.) Reconsider adding the change in law language at the next license renewal, based on the Solid Waste Management Plan Update findings.
3.) Approve the change to the Solid Waste Bill of Rights written notification for rate increase or decrease from ten (10) days to sixty (60) days with due consideration of an effective date for this new rate increase.
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