CalMet Waste Hauler Asking for Rate Increase in Cerritos

BY BRIAN HEWS

In September 2020, after seeing three years of disallowed rate increases, the Cerritos City Council, led by Mayor Naresh Solanki, Mayor pro tem Chuong Vo and Councilman Bruce Barrows, voted to give Cerritos’ city trash hauler CalMet a 16% residential increase.

The increase was a combination of the last three years of non-approval to raise the rates.

In 2017 a new agreement with CalMet dictated the maximum rates the company could charge Cerritos residents.

The agreement included a provision for CalMet to submit an annual request to adjust the maximum allowable rate that can be charged. In 2018 they submitted their request for a 5% residential increase and a 4.3% commercial increase; that request was denied on a 3-2 vote.

In July 2019, CalMet submitted a second request but this time the company submitted an extraordinary rate adjustment as allowed by the contract.

CalMet proposed a 14% increase to commercial bins while freezing residential rates at current levels, but sensing that would not pass, at CalMet’s request, the item was removed from the agenda.

This year CalMet submitted a proposal for a 16% residential increase, 13.7% commercial bin increase, and an 18% commercial roll-off increase.

According to staff reports, CalMet would earn an additional $1.3 million providing the city nearly $193,000 in franchise fees, but residents would see their bill go from $17.60 to $20.42, an increase of $2.82.

CalMet’s former residential rates in Cerritos were one of the lowest of surrounding cities surveyed; with the new rate increase it is right about in the middle, $4 less than Whittier, $3 less than La Mirada and Downey.

The rate increases were approved on a 3-2 vote with Councilpersons Grace Hu and Frank Yokoyama voting no.

Now CalMet is asking for another increase.

A press release from the City stated, “Cerritos City Council to review proposed CalMet Services rate adjustment. The Cerritos City Council will review a request from CalMet Services for an adjustment to the maximum allowable solid waste management rates in the City of Cerritos at its meeting on Thursday, August 26 at 7 p.m. in the City Hall Council Chambers.”

Sources are telling HMG-CN that the increases will be very nominal, less that 1% for commericial and 2% for residential.