[date]
[location]
Department of Public Utilities
Community Outreach Workshop
1 WELCOME
November and December 2023
vFinal
WELCOME
1. Solid Waste Management Division
(SWMD) Provided Services
2. SWMD’s Current Cost Realities and
Financial Health
3. The Proposition 218 Rate-Setting
Process
2 Tonight’s Meeting
Solid Waste
Management
Division
• 119,000 customers
• 4 collection days per
week
• 64 daily collection
routes
• 353,000 carts
– Gray – Solid Waste
– Blue – Recycling
– Green – Organics
3 Residential Program
Solid Waste
Management
Division
4 Additional Services
Free Dump Days
Citywide Litter
Control Activities
Operation Clean Up
Recycling Education
& Outreach
Free Shred Days
Solid Waste
Management
Division
5 Current Service Levels
Standard Service:
$25.37 per month
96-gallon
recycling
96-gallon
green
waste/
organics
96-gallon
trash
Alternate Service:
$19.20 per month
96-gallon
recycling
96-gallon
green
waste/
organics
64-gallon
trash
• Service Accounts
– 103,000 in 2012
– 119,000 today
• Revenues
– $28,356,483 in FY2012
– $32,234,917 in FY2023
The current solid waste rates were last updated in 2009 Accounts and Annual Revenue
6 0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2010 2012 2014 2016 2018 2020 2022 2024
Accounts
Revenue
Revenue Accounts
Solid Waste
Management
Division
• Waste Volume
– 231,340 tons in FY2012
– 260,263 tons in FY2023
Waste Volume Collected
7 -
50,000
100,000
150,000
200,000
250,000
300,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Waste Collected, Tons
Trash Green Waste Recycling
Solid Waste
Management
Division
• Landfill Tipping Fees
– FY2012: $6,511,682
– FY2023: $7,367,703
• Fuel
– FY2012: $926,896
– FY2023: $1,586,400
• Labor
– FY2012: $11,557,642
– FY2023: $14,150,900
Cost Reality:
Continued Cost Increases
8 $0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Expenses Revenue
• Vehicles
– 2012: Collection Truck $261,500; Pickup Truck $32,305 – 2023: Collection Truck $595,700; Pickup Truck $51,100 • Fleet Maintenance
– FY2012: $4,289,413
– FY2023: $7,075,308
• Collection Cart Purchases
– FY2012: $741,360
– FY2023: $954,850
Cost Reality:
Continued Cost Increases
9 • 1.3 million miles per year
across entire 176 vehicle fleet
• 109 collection trucks operate
in severe duty environment
• 25% of fleet is beyond
expected 8-year service life
• Deferred needed
replacements in 2023
Cost Reality:
Need to Catch Up Vehicle Replacements
10 • Under USEPA enforcement action
• City required to collect and treat landfill gas and groundwater • $2.5M included in FY24 budget for regrading and treatment improvements
Cost Reality:
Fresno Sanitary Landfill Regulatory Action
11 • SB1383 is California’s
Short-Lived Climate
Pollutant reduction
regulation
• Requires reducing
landfilling of green waste
and organics
• Public education,
collection, and
composting will require
more effort
Cost Reality:
SB1383’s Additional Cost Pressure
12 Annual Operating Costs
13 $0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Labor Tipping Fees Fuel Fleet Maintenance Vehicle Purchases All Other Expenses Overall Financial Situation
14 $0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Labor Tipping Fees Fuel Fleet Maintenance Vehicle Purchases All Other Expenses Revenue Operating Reserves Annual Revenue
Without a Rate
Update
There are two options:
• SWMD will have to
borrow from the City’s
general fund, impacting
other city services, or
• Additional cost cutting
measures will need to be
taken which will impact
SWMD’s services to
residential customers
15 15
What’s Next:
The Prop 218 Rate-Setting Process
• Complete the Rate Study Report
• Council Approval to Initiate Prop 218
• Property Owner and Renter Notice
• Public Hearing After 45 Days
– Final Count of Protests
– City Council Discussion
– City Council Approval
– Adopt and Implement Updated Rates
16 Nov 28 through Dec 6, 2023: Four Community Outreach Meetings Dec 14, 2023: City Council Considers Initiating Prop 218 Process March 18, 2024: Service Accounts Receive Prop 218 Notices May 2, 2024: Public Hearing and Final Protest Deadline
July 1, 2024: New Rates Go Into Effect
Tentative Schedule
17 Questions?
www.fresno.gov/prop218
or call 621-8218
18