FINANCE, ECONOMIC DEVELOPMENT AND JOBS
AGENDA
REGULAR MEETING
March 24, 2025, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
Members
Larry Koman
Eric Arias
Andrae Gonzales
1. ROLL CALL
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
b. Non-Agenda Item Public Statements
3. ADOPTION OF MINUTES
a. Adoption of February 10, 2025, regular meeting minutes Staff recommends adoption of minutes
4. STAFF REPORT
5. NEW BUSINESS
a. Rate Increase for Refuse Rate Structure
Staff recommends approval of the proposed refuse rate increase. *1. Staff memorandum provided by Public Works
b. Proposed Gate Fee at the Organics Facility for Commercial Debris Staff recommends that the item be referred to full Council at the time FY25-26 budget is considered.
*1. Staff memorandum provided by Public Works
6. COMMITTEE COMMENTS
7. ADJOURNMENT
1 FINANCE, ECONOMIC DEVELOPMENT AND JOBS
MINUTES
SPECIAL MEETING
February 10, 2025, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
Members Present: Larry Koman, Andrae Gonzales, Eric Arias
Members Absent Eric Arias
City Staff Present: Jennifer Byers, Economic and Community Development Director Julie Drimakis, City Clerk
Virginia “Ginny” Genaro, City Attorney
Rick Anthony, Assistant City Manager
_____________________________________________________________________
1. ROLL CALL
Meeting was called to order at 12:04 p.m.
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
None.
b. Non-Agenda Item Public Statements
None.
3. ADOPTION OF MINUTES
a. Adoption of the January 27, 2025, regular meeting minutes Moved by: Andrae Gonzales
Staff recommends adoption of minutes
For (2): Larry Koman, and Andrae Gonzales
Absent (1): Eric Arias
Approved (2 to 0)
2 4. STAFF REPORT
None.
5. NEW BUSINESS
a. 2025-2030 Consolidated Plan and 2025-2026 Annual Action Plan Overview of Consolidated Plan process, goals and Annual Action Plan budget.
Economic and Community Development Director Byers made staff comments and provided a PowerPoint presentation.
Councilmember Gonzales requested a reduction of funding proposals as recommended by staff to provide funding to include an additional lighting project for East Truxtun.
Staff recommends that the committee forward the reviewed allocations for approval by the full Council.
Moved by: Andrae Gonzales
Councilmember Gonzales made a motion to delay the San Dimas project by one year and add the lighting project for East Truxtun. if there are additional funds awarded.
For (2): Larry Koman, and Andrae Gonzales
Absent (1): Eric Arias
Approved (2 to 0)
Moved by: Andrae Gonzales
Councilmember Gonzales motioned for staff to create a contingency plan if there are additional funds awarded.
For (2): Larry Koman, and Andrae Gonzales
Absent (1): Eric Arias
Approved (2 to 0)
1. PowerPoint presentation by ECD
3 6. COMMITTEE COMMENTS
7. ADJOURNMENT
Meeting was adjourned at 12:53 p.m.
_________________________
LARRY KOMAN, CHAIR
_________________________
JULIE DRIMAKIS, CITY CLERK
ADMINISTRATIVE REPORT
MEETING DATE: March 24, 2025 AGENDA CATEGORY: New Business TO: Finance, Economic Development and Jobs Committee
FROM: Zachary Meyer, Public Works Director
DATE: March 5, 2025
SUBJECT: Rate Increase for Refuse Rate Structure
Proposed rate increase for refuse rate structure.
RECOMMENDATION:
Staff recommends approval of the proposed refuse rate increase.
BACKGROUND:
Staff proposes an 9.75% increase to residential and commercial refuse and recycling rates for F iscal Year (FY) 2025-26. The proposed increase is necessary to fund proposed operating and capital improvement budgets. Over the past years, the City has maintained competitive rates while facing increasing costs related to city growth, equipment cost, regulatory compliance, infrastructure, and Clean City Initiative services. Despite cost -cutting measures and efficiency improvements, the current rate s tructure is insufficient to sustain our financial obligations and service commitments. In addition, refuse rate increases are required to fund increased state-imposed regulations and City’s contractual obligations with hauling contractors. Outside hauling contractors pick up approximately 50% of the City’s refuse. Per the hauling agreement, the hauling contractor’s compensation is to be adjusted annually by the consumer price index (CPI). The CPI increased by 3.3 % in 2025.
The City of Bakersfield is dedicated to keeping its refuse rates as low as possible while also complying with State mandates. The City charges residents no more than the cost of providing solid waste, recycling, and organic waste services as required by Proposition 218 (Prop 218) and only increases rates when operating costs rise. Rates for single-family dwellings are proposed to increase from $286 to $314 annually, which equates to a monthly change from $23.83 to $26.17 —an increase of just $2.34 per month. If approved, the City’s refuse rates will continue to be amongst the lowest in the state. Residential new homes have increased by 1,017 in FY 22/23, 1,249 in FY 23/24, and projected to increase by 1,380 in 2025.
Commercial rates are also proposed to increase by 9.75%. Commercial costs are increasing due to new laws including the California Senate Bill (SB) 1383, which is designed to reduce greenhouse gas emissions by diverting businesses and multifamily dwellings units that generate waste to receive recycling and organic waste collection services. In January 2025 Senate Bill (SB) 1383 required the City to reduce organic waste sent to landfills from all commercial businesses to 75% by 2025. SB 1383 adds organic diversion requirements for residential and business customers and will requir e monitoring, reporting and compliance enforcement by City staff and resources which will raise operating and salary costs. These requirements will require more staff and resources. Since January 2022 when SB 1383 was first implemented City staff identified 10,942 generators, businesses and multifamily dwellings that required organic and recycling services. City staff have made significant progress with only approximately 20% left to comply with SB 1383.
Clean City Initiative (CCI) services is a program that was implemented FY 21/22 and was funded by PSVS.
Over the past three years CCI Teams have removed 4,220 tons of illegal dumping. Operational costs have significantly grown, and all expenditures have be en transitioning out of PSVS funds and into the Kern County Illegal Dumping funds. The current funding is insufficient to sustain current financial obligations and service levels. The proposed rate increase will allow service levels to not be interrupted.
Prop 218 notices will be mailed to property owners in early April. The Prop 218 process ensures the public is notified of rate increases and provides an opportunity to protest rate changes.
FISCAL IMPACT:
The status of the enterprise fund, including th e revenue requirements, reserve fund balance requirements, operating and maintenance costs, and capital improvement costs have all been considered when generating this rate increase. As a whole, the proposed changes ensure that the refuse enterprise is fin ancially stable, the costs are equitably divided amongst user groups, and Proposition 218 requirements are met.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
Refuse Rate Increase Presentation
Rate Increase FY25/26
City of Bakersfield
Public Works Department
Solid Waste Division
Division Goal
To provide high-quality and cost-effective solid
waste and recycling services while keeping user
fees as low as possible. Prioritize education,
eradication, and enforcement, along with the
Clean City Initiative (CCI), with a special focus
on preventing and addressing litter and illegal
dumping, in alignment with City Council goals.
Continue to develop and implement cost-saving
strategies for the Materials Recovery Facility
and the consolidation station at the Mount
Vernon Organics Recycling and Composting
Facility. Develop waste reduction and recycling
programs to comply with state mandates and
establish new market strategies while prioritizing
efficiency and energy-saving systems at the
Mount Vernon Organics Recycling and
Composting Facility.
Rate Increase
0.75%
3.30%
3.00%
0.60%
2.10%
Calculating Rate Increase
SB 1383 CPI CCI Growth Infrastructure
9.75%
Staff proposes a 9.75% increase in
residential and commercial refuse
and recycling rates for FY 25/26.
The increase covers growing costs
from:
• City expansion
• Infrastructure
• Regulatory compliance (SB1383)
• Clean City Initiative (CCI) services
• Hauling contractor agreements tied
to CPI increases
$100,000.00
$88,000.00
$88,000.00
$115,000.00
$100,000.00
$5,000.00 $12,000.00
Senate Bill 1383 Breakdown
Annualized Truck
Annual Maintenance
Admin & Fiscal Spec
Compliance Inspector
SWEO
Compl Inspector Truck
Compl Inspector Truck Maint
0%
50%
85%
100%
0%
20%
40%
60%
80%
100%
120%
0 2000
4000
6000
8000
10000
12000
2022 2024 2025
(Current)
2025 (Goal)
SB 1383 Implementation
Non-Compliant In Compliance Implementation
Senate Bill 1383
Commercial rates will also increase by 9.75%, primarily due to compliance with SB 1383, which mandates a 75% reduction in organic waste sent to landfills by 2025. Additional staffing and resources are required to meet monitoring and enforcement obligations. The City remains committed to keeping rates as low as possible while maintaining essential services.
Consumer Price Index (CPI)
Clean City Initiative (CCI)
• Consumer Price Index increased by 3.3% in
2025.
• Hauling contractor compensation is annually
adjusted based on the CPI, as outlined in
the Hauler Agreement.
Implementing a trash consolidation facility offers
significant operational, financial, and environmental
benefits to our refuse collection fleet by reducing
the need for long-haul trips to the landfill. This
approach improves efficiency, lowers costs, and
minimizes environmental impact.
• Reduced Fuel Consumption and Vehicle Wear
• Increased Route Efficiency and Productivity
• Lower Labor Costs and Increased Safety
• Environmental Benefits
• Operational Flexibility and Scalability
Infrastructure
• To maintain the current level of service
with CCI teams, SW must cover program
shortfall of approximately $2 Million per
year that was originally supported by
PSVS funding. These funds will support
four contractors that provide city-wide
coverage.
Residential Growth
Residential rates are proposed to increase from $286 to $314 annually, which equates to a monthly change from $23.83 to $26.17—an increase of just $2.34 per month, remaining among the lowest in the state. Commercial rates also rise due to increased compliance costs. Despite efficiency measures, the current rates are insufficient to sustain services and meet mandates. The City is committed to maintaining rates as low as possible while fulfilling service obligations. 1017
1249
1380
0 200
400
600
800
1000
1200
1400
1600
FY 22-23 FY 23-24 FY 24-25 (Projected)
Refuse New Residential
Residential Addresses
Refuse Rate Survey Annual – FY2024/25
$286
$287
$317
$344
$359
$370
$392
$414
$420
$422
$448
$472
$477
$525
$533
$560
$563
$569
$575
$618
$659
$688
$694
$742
$881
$1,059
$1,107
$1,387
$1,923
$1,924
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200
City of Bakersfield
Visalia
San Bernardino
Chino Hills
Santa Clarita
Fresno
Kern County
Oceanside
Chula Vista
Redding
Pomona
Clovis
Riverside
Ontario
Torrance
Pasadena
Glendale
Oxnard
Santa Maria
Merced
Modesto
Stockton
Sacramento
Burbank
Fremont
Santa Rosa
San Francisco
Alameda
Oakland
San Jose
* Numbers are rounded to the nearest dollar
City FY25/26 with proposed 9.75% rate
increase ($314) Still one of the lowest in
the state.
Questions?
ADMINISTRATIVE REPORT
MEETING DATE: March 24, 2025 AGENDA CATEGORY: New Business TO: Finance, Economic Development and Jobs Committee
FROM: Zachary Meyer, Public Works Director
DATE: March 5, 2025
SUBJECT: Proposed Gate Fee at the Organics Recycling and Composting Facility for Commercial Debris
Proposed Gate Fee at the Organics Recycling and Composting Facility for Commercial Debris. (All Wards)
RECOMMENDATION:
Staff recommends that the item be referred to full Council at the time FY25-26 budget is considered.
BACKGROUND:
The Organics Recycling and Composting Facility, in operation since the late 90s, is situated on 96 acres; 75 acres of which is utilized for the City’s organics recycling and composting operations. Under an agreement with Kern County, it also serves unincorporated areas within metropolitan Bakersfield. The facility’s operation has increased over time due to changes in federal and state rules and regulations as well as growth in population and housing. In 2024, the Organics Recycling and Composting Facility had a traffic flow of almost 94,000 vehicles and accepted and processed over 220,000 inbound tons of organic waste.
Currently, the fee structure charges an organic composting fee for residential green carts as part of the Single-Family Dwelling Unit ($286 per year per home) and commercial green carts or bins $59.25 per ton.
This fee applies to inbound organic waste brought from contracted haulers and other applicable entities within the state -mandated and city -facilitated curbside organics recycling program . Other commercial landscaping trucks and trailers are not currently charged for the organic waste they bring to the facility.
County facilities and landfills began charging $65.15 per ton for non-residential inbound organic waste on July 1, 2024. Since implementing a fee, commercial and landscaping trucks and trailers that were going to those facilities are now coming to City’s facilities to discard their organic waste free of charge. The increase in inbound tonnage increased the workload for staff and increased the production of compost and mulch.
The increase in the productio n of compost and mulch caused a few issues. Compost and mulch used to be sold to local farmers, homeowners, and nurseries at a minimal cost, providing some financial cost recovery since there was no fee being charged to inbound commercial vehicles. With continued statewide efforts for S enate Bill 1383, the market has since been flooded with recycled organic products, such as compost and mulch. Presently, the facility freely gives these products away and still has difficulty moving the products at an accepta ble rate. The compound effect of the increase in workload, and inability to move the products has created additional operational costs that are no longer even minimally offset by product sales.
The Solid Waste Division implemented an inbound organic fee of $59.25 that went into effect July 1, 2024, for 3-axle and 4-axle commercial vehicles which, to date, has resulted in revenue of $3,008. This fee will increase to $65.03 on July 1, 2025, due to the 9.75% rate increase. However, to avoid paying any fees, 3-
axle and 4-axle commercial vehicles that were coming to City’s Organics Recycling Facility switched to 2 - axle vehicles.
Beginning July 1, 2025, a fee of $65.03 per ton will be implemented for 2 -axle vehicles bringing in non- residential inbound organic waste. The proposed fee will be equivalent to the fee that is charged to curbside commercial customers in FY25-26. Estimated revenue is approximately $6.5 million dollars that can support the increased operations the facility will continue to undergo. The existing city/county agreement outlines County’s cost share of 62% of expenses and will share in the anticipated revenue from the proposed addition to the rate fee structure. The County reimbursement will decrease appropriately based on the revenue collected.
FISCAL IMPACT:
This proposal has no impact on the General Fund, it is all related to Refuse Enterprise Fund. The Refuse Fund will collect additional revenue to support operational costs.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
Proposed Gate Fee at the Organic Facility
Proposed Gate Fee at the Organics Recycling and
Composting Facility for Commercial Debris
City of Bakersfield
Mt. Vernon
Organics Recycling and
Composting Facility
Mt. Vernon
Organics Recycling and Composting Facility
• 96 acres (75 acres utilized for City organics
recycling and composting operations)
• 450 tons of daily incoming curbside organic
waste and commercial food waste from City &
County combined.
• In 2024, facility had a flow of 94,000 vehicles
and accepted/processed over 218,000
inbound tons organic waste.
• County currently reimburses 62% of
operational expenses.
Charges
• Effective FY 24/25, Council approved
Organic Facility Gate Fee ($59.25/ton) for
3-axle vehicles and above.
• Only $3,008 of additional revenue was
generated in FY24/25.
• Commercial landscaping trucks and trailers
are not currently charged for the organic
waste they bring in because they switched
their equipment to two-axle vehicles.
Changes
• County Organic Fee Charge as of July 1, 2024
@ $65.15 per ton (Proposed $67.25 per ton
FY25/26)
• Processing more material due to Senate Bill
1383
Market has since been flooded with recycled organics
products, such as compost and mulch.
• Limited buyers for end products (i.e., mulch and
compost)
Presently, the facility freely gives these products away, and still has difficulty moving the products in comparison to producing them
• With the increase in staffing workload, and
inability to move products, it has created
additional operational costs that are no longer
even minimally offset by product sales.
Proposed Organic Facility Changes
FY25/26 to include all commercial vehicles. Commercial landscaping trucks and trailers are not currently charged for the organic waste they bring in because they switched their equipment to two-axle vehicles. 2-AXLE COMMERCIAL
3-AXLE/ 4-AXLE COMMERCIAL
Budget
FY25-26 Additional Revenue for 101,200 Tons = $6,500,000 Due to the City/County agreement, the City's net revenue will be lower, as the County will receive 62% of the total revenue.
City Net Revenue: $2,470,000
The City's share of the revenue will be allocated to the master planning project, focusing on sustainability, maximizing efficiency, and creating redundancy. Preliminary projections estimate the cost to be between $15 million and $20 million that will be phased in over time. Master planning document should be completed in FY 25/26.
Questions?