RESOLUTION NO.____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY FINDING THAT THE CITY’S FRANCHISE FEES INCLUDED IN THE SOLID WASTE RATES ARE JUSTIFIED AND APPROVING INCREASES TO THE 2023 MONTHLY RESIDENTIAL SOLID WASTE COLLECTION RATES BY NO MORE THAN $5.40 PER ACCOUNT IN RATE YEAR 2024 AND APPROVING INCREASES TO 2024 CHARGES FOR UNSCHEDULED SERVICES BY 5.465% OVER 2023.
CITY OF FOSTER CITY
WHEREAS, the City contracted with HF&H Consultants, LLC (“HF&H”) to analyze the solid waste rates and to review the City’s franchise fees to determine the amounts the City is entitled to charge for its solid waste related services and the use of its public rights of way for solid waste services: and
WHEREAS, HF&H provided the City with a Memorandum analyzing the Proposed 2024 Solid Waste Rates on September 15, 2023 (“HF&H Study”), attached hereto as Exhibit A, which determined that the sum of the costs of service provided by the City in relation to solid waste services and the reasonable fee for the use of the City’s public rights of way for container placement was greater than the total, annual franchise fees included in the solid waste rates for each rate year from 2024 through 2028; and WHEREAS, pursuant to the HF&H Study, the City’s franchise fees, included in the solid waste rates, comply with Article XIII C, Section 1 of the California Constitution; and WHEREAS, On October 2, 2023, the City Council considered information related to the solid waste, recyclable, and organic materials collection and processing program relative to rates for 2024, and
WHEREAS, per Minute Order 1942, the City Council directed staff to proceed with the public notification procedures set forth in Article XIII D, Section 6 of the California Constitution (Proposition 218) to increase residential Solid Waste rates for 2024 by no more than $5.40 per account over 2023 rates; and
WHEREAS, the Proposition 218 notice provided for the approval of maximum increases of $4.74 in Rate Year 2025, $4.98 in Rate Year 2026, $4.19 in Rate Year 2027 and $4.35 in Rate Year 2028 in order to allow for the planned and orderly implementation of rate adjustments over the five year term; and
WHEREAS, an increase of 5.465% for 2024 over 2023 fees is required for Unscheduled Services; and
WHEREAS, the collection rate increases are necessary to meet current and projected future costs for solid waste, recyclable, and organic materials collection services; and
WHEREAS, the City Council’s action is not a project pursuant to CEQA Guidelines section 15378(b) (4) because the City is authorizing maximum rates to be charged to fund on-going solid waste services, and as such, the action involves a funding mechanism or fiscal activity within the meaning of the CEQA Guidelines; and WHEREAS, on October 6, 2023, notices were mailed to 7,295 residential and commercial customers in Foster City, pursuant to Government Code section 53755; and WHEREAS, a public hearing was held in accordance with the requirements of Proposition 218, the City did not receive protests from a majority of the parcels receiving solid waste, recyclable, and organic materials collection services, and per Proposition 218, may proceed with the proposed rate adjustment; and WHEREAS, the City Council has chosen as a matter of policy to follow the procedures set forth in Article XIII D of the California Constitution, nothing in this Resolution shall be interpreted as an admission by the City that the provisions of Article XIII D apply to the actions taken herein; and
WHEREAS, to the extent that this rate authorization results in the imposition of any fees, rates, or charges for services or facilities in connection with the City’s solid waste system, those charges are adopted pursuant to California Health and Safety Code section 5471.
NOW, THEREFORE, BE IT RESOLVED that the City Council accepts and adopts the HF&H Study as attached hereto as Exhibit A and finds and determines that the City’s franchise fees included in the solid waste rates are justified by the City’s costs of service and the value of City right of ways used for solid waste services; and BE IT FURTHER RESOLVED that the City Council of the City of Foster City does hereby approve the following as attached hereto as Exhibit B, effective January 1, 2024:
1 Increasing the 2023 monthly residential collection rates by no more than $5.40 per account in rate year 2024; and
2 Increasing 2024 charges for unscheduled services by 5.465% over 2023.
PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of November, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
JON FROOMIN, MAYOR
ATTEST:
PRISCILLA SCHAUS, CITY CLERK