PUBLIC HEARINGNEW COMMERCIAL AND RESIDENTIAL SOLID WASTE HAULING RATESErick Lee, Public Works DirectorAnna Luke-Jones, Solid Waste Administrator May 20, 2025
TONIGHT’S ACTION
May 20, 2025
Proposition 218 refuse public hearing
Conduct Public Hearing
to Consider Adopting New Refuse Rates and rate adjustment methodology for Residential andCommercial Solid Waste Collection Services Effective for 5 years
FY 24/25 through fy 29/30
IMPORTANCE OF PROPOSITION 218
May 20, 2025
Proposition 218 refuse public hearing
Approves solid waste rate increases for only five years Year of Franchise Agreement
Proposition 218 Compliant
FY2020-2021
YES
FY2021-2022
YES
FY2022-2023
YES
FY2023-2024
YES
FY2024-2025
YES
Year of Franchise Agreement
Proposition 218 Compliant
FY2025-2026
NEED PROP 218
FY2026-2027
NEED PROP 218
FY2027-2028
NEED PROP 218
FY2028-2029
NEED PROP 218
FY2029-2030
NEED PROP 218
PROPOSITION 218 PROCESS
May 20, 2025
Proposition 218 refuse public hearing
What is Proposition 218?
Passed by CA voters in 1996.
Proscribe (“limits”) methods local governments can create or increase taxes/fees/charges.
Allows property owners or rate payers to protest utility rate increases.
Mandatory 45-day protest period.
Public Hearing & absence of a majority protest required prior to Council adoption of new rates.
Public Hearing date is May 20, 2025.
PROPOSITION 218 PROCESS CONT’D
May 20, 2025
Proposition 218 refuse public hearing
What Notification
is Required
City of Manhattan Beach Actions
(State of CA) The public agency must send notice and rates to each property owner and rate payer.
Sent notice & rates to property owners, rate payers.
Sent notice to tenants for outreach.
Published Beach Reporter print ads on 3/27, 4/3, 4/10, 4/17, 4/24 and Public Hearing Notices on 5/1, 5/8 & 5/15.
Published Beach Reporter banner ad from April 3– May 19.
Hosted Hybrid Community Meeting on 4/3/25 in CC Chambers & on Zoom.
Uploaded recorded meeting to Prop 218 Refuse page on City website.
OUTREACH
May 20, 2025
Proposition 218 refuse public hearing
Banner on www.beachreporter.com
Short URL to webpage
www.manhattanbeach.gov/Refuse218
5 print ads,
3 Public Hearing Notices
Community Meeting
(in-person & Zoom, link to video on City website)
RATE CHANGES UNDER CONSIDERATION
May 20, 2025
Proposition 218 refuse public hearing
CONTRACTOR RATE (WM)
+
ONE-TIME SPECIAL ADJUSTMENT (WM)
(approved by CC 12/3/24)
+
CITY RECOVERY COST (CRC)
FY2026 CUSTOMER RATE =
FY2026 Solid Waste Rate Adjustment
Single Family & Multi-Family Cart Customers:
11.91% increase (4.4% CPI + 2.51% special increase + 5% CRC) Multi-Family Bin Customers, Commercial Customers & Extra Services:
14.8% increase (4.4% CPI + 2.51% special increase + 5% CRC) Temporary Bin Rentals & Roll-Off Bin Customers:
4.4% increase (4.4% CPI)
FY2027
FY2028
FY2029
FY2030
CPI,
with an 8% cap
Future Adjustments
SINGLE-FAMILY RESIDENTIAL INCREASES
May 20, 2025
Proposition 218 refuse public hearing
CART TYPE
CURRENT
CUSTOMER RATE
(WM & CRC)
INCREASE
(4.4% CPI & 2.51% SPECIAL)
CRC
(5%)
FY 2026 PROPOSED CUSTOMER RATE
DIFFERENCE $
20 & 35 gallon trash cart
$17.76
($16.91 WM + $0.85 CRC)
$1.17
$0.90
$18.98
+ $1.22
65 gallon
trash cart
$23.06
($21.96 WM +
$1.10 CRC)
$1.52
$1.17
$24.65
+ $1.59
95 gallon trash cart
$28.35
($27 WM +
$1.35 CRC)
$1.87
$1.44
$30.31
+ $1.96
SINGLE-FAMILY RESIDENTIAL RATES BASED ON LANDFILL CARTS ONLY No separate charge for recycling and organics
COMMERCIAL TRASH BIN PROPOSED RATES
May 20, 2025
Proposition 218 refuse public hearing
COMM. TRASH BIN RATES BASED ON SIZE, QUANTITY AND FREQUENCY
CART TYPE
CURRENT
CUSTOMER RATE
(WM & CRC)
INCREASE*
(4.4% CPI & 5.4% SPECIAL)
CRC
(5%)
FY 26 PROPOSED CUSTOMER RATE
DIFFERENCE $
2 CY trash bin
1x week
$179.89
($171.32 WM + $8.57 CRC)
$16.79
$9.41
$197.52
+ $17.63
3 CY trash bin
1x week
$231.04
($220.04 WM +
$11.00 CRC)
$21.56
$12.08
$253.68
+ $22.64
4 CY trash bin
1x week
$276.77
($263.59 WM +
$13.18 CRC)
$25.83
$14.47
$303.89
+ $27.12
COMMERCIAL RECYCLING BIN PROPOSED RATES
May 20, 2025
Proposition 218 refuse public hearing
COMM. RECYCLING BIN RATES BASED ON SIZE, QUANTITY & FREQUENCY Recycling is 50% of the landfill rate for the same size container
CART TYPE
CURRENT
CUSTOMER RATE
(WM & CRC)
INCREASE*
(4.4% CPI & 5.4% SPECIAL)
CRC
(5%)
FY 26 PROPOSED CUSTOMER RATE
DIFFERENCE $
2 CY recy. bin
1x week
$85.67
($81.39 WM + $4.28 CRC)
$8.40
$4.70
$98.77
+ $13.10
3 CY recy. bin
1x week
$110.03
($104.53 WM +
$5.50 CRC)
$10.78
$6.04
$126.85
+ $16.82
4 CY recy. bin
1x week
$131.80
($125.21 WM +
$6.59 CRC)
$12.92
$7.24
$151.96
+ $20.16
PROPOSITION 218 PROTEST COUNT
May 20, 2025
Proposition 218 refuse public hearing
If more than 6500
protests are received
If less than 6500
protests are received
A majority protest exists, and the City Council may not adopt the resolution The City must pay the difference in rates from the General Fund City Council can amend its contract with Waste Management to reduce services to match FY2025 rates City Council can initiate the Proposition 218 process again at any time.
The City may adopt the resolution, approving a new rate increase to be passed on to the ratepayer.
The new rates will take effect July 1, 2025.
Approval of the FY2026 rates and rate adjustment methodology for FY2027 – FY2030 is good for 5 years, at which time another Prop 218 will be required.
NEXT STEPS FOR COUNCIL TONIGHT
May 20, 2025
Proposition 218 refuse public hearing