City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, Interim City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: November 19, 2024
ITEM NO: 9.2
SUBJECT: Approve Resolution No. 2024-63 Declaring the Results of the Proposition 218 Protest Proceeding for the New Five-Year Solid Waste Rate Schedule, Beginning January 1, 2025.
RECOMMENDATION
Motion to Approve Resolution No. 2024-63 Declaring the Results of the Proposition 218 Protest Proceeding for the New Five-Year Solid Waste Rate Schedule, Beginning January 1, 2025.
BACKGROUND
On September 3, 2024, the City Council received a presentation from staff and the consulting firm Bartle Wells regarding their Solid Waste Fund Analysis and proposed rate increases for the next five (5) years (see Attachment 1, containing the Solid Waste Rate Study Final Report). The study’s objectives were to develop a sound understanding of the characteristics of the solid waste system, its facilities and infrastructure, its finances and annual revenue requirements, short-term and long-term capital needs, and to develop the basic assumptions for calculating rates.
Based on the results of the study, the new proposed rates are necessary to maintain the Solid Waste Fund’s financial health so that it is able to continue to provide the high level of services which include weekly three (3) can service, the recycling program (residential), commercial/organics recycling rates, weekly-street sweeping, oleander and alley maintenance services, funding of $100,000 per year for street maintenance, and maintaining compliance with SB 1383 - the State of California’s unfunded mandates. The rate study determined that slightly higher rates are needed to maintain continued high levels of service.
At the City Council meeting on September 3, 2024, the Council adopted the resolution to set the public hearing and begin the Proposition 218 proceedings to propose increases to solid waste rates. Notices were mailed to the property owners and rate payers of record in advance of this hearing, and tonight is the public hearing to determine if a majority protest exists. Additionally, City staff provided notice of the public hearing by advertisement in the newspaper, posting at City Hall, and uploading the notice and associated rate study documents to the City’s website.
ANALYSIS
The proposed rate schedule is included in the rate study, and also in the Resolution included as Attachment 2. To adopt the proposed rate schedule, the Council must do the following:
1. Open the public hearing and receive public comments; and
2. Allow for additional protest votes (if any); and
3. Declare the results of the protest vote; and
4. If in agreement, adopt the attached Resolution declaring the results of the protest proceeding and approving the new rate schedule. If approved, new rates would be implemented January 1, 2025, and every July 1st thereafter, with the last increase taking place on July 1, 2029.
In addition, the City Council approved the continuation and expansion of the Senior Low-Income Discount Program utilizing the T.I.D. CARES Program guidelines as a qualifying factor for the program. Staff recommended and the Council approved the continuation of the Senior LowIncome Discount Program in the amount of $10, included no increases in the first two (2) increases and limits the subsequent increases to just half of the proposed full annual increases.
The total discount a qualifying customer would receive on July 1, 2029, is $25.03. The discount is subsidized by Solid Waste Fund late fees that totaled approximately $145,000 in Fiscal Year 2024/25.
FISCAL IMPACT
All costs associated with this item have been budgeted and approved by the City Council. The costs include funding for the rate study and assistance with the Proposition 218 process. All costs were budgeted in the Solid Waste Fund (600-790). The proposed annual solid waste rate increases for the next five (5) years would sustain financial strength in the solid waste fund revenues.