City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: June 17, 2025
ITEM NO: 9.3
SUBJECT: Hold Public Hearing, Receive Public Comments Pursuant Prop 218 Requirements; Consider any Protests Regarding the Proposed Solid Waste Rate Increases in Accordance with Prop 218; and Approve Resolution No. 2052-45 Declaring the Results of the Noticed Protest Proceedings and Adopting a Five-Year Schedule of Solid Waste Rate Adjustments effective July 1, 2025.
RECOMMENDATION
Hold Public Hearing, Receive Public Comments Pursuant Prop 218 Requirements; Consider any Protests Regarding the Proposed Solid Waste Rate Increases in Accordance with Prop 218; and Approve Resolution No. 2052-45 Declaring the Results of the Noticed Protest Proceedings and Adopting a Five-Year Schedule of Solid Waste Rate Adjustments effective July 1, 2025.
BACKGROUND
On April 15, 2025, 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 B, 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 findings of the recent rate study, the proposed rate increases are necessary to maintain the financial health of the Solid Waste Fund and ensure the continued delivery of essential public services. The Solid Waste Enterprise significantly supports a range of City programs and maintenance services in Patterson-funding between 30% and 100% of their costs.
These services include solid waste collection, community recycling, weekly residential street sweeping, alley and oleander maintenance, urban forestry, and an annual contribution of $100,000 for street maintenance. Additionally, the proposed rates are critical for meeting the unfunded requirements of California’s SB 1383 legislation, which applies to both residential and commercial sectors.
ANALYSIS
Due to the prevailing wage payment mandate by the State of California and its impact on street sweeping services, the Rate Study developed three financial plans and rate scenarios based on street sweeping levels of service for the City Council to consider. By Minute Action, the Council selected its preferred Rate Structure Alternative and directed City Staff to proceed with Rate Scenario Number 2 and adopted the resolution to set the public hearing and begin Proposition 218 proceedings to propose increases to solid waste rates. Notices were mailed to the property owners and ratepayers of record in advance of this hearing (Attachment A as Exhibit A), 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 uploaded the notice and associated rate study documents to the City’s website.
The proposed rate schedule is included in the Resolution (Attachment A as Exhibit B). 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 July 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. The Council's decision to expand the program would result in a qualifying customer receiving a total discount of $25 on July 1, 2029. The discount is subsidized by Solid Waste Fund late fees that totaled approximately $145,000 in Fiscal Year 2024/25.
Rate Table for Residential and Qualifying Low Income Senior Customers Recommended Rates Current July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 Residential Three Toter Service ($ per Service)
Size Weekly Frequency Current Proposed Proposed Proposed Proposed Proposed Residential Customers 1 X $41.83 $43.98 $47.72 $51.59 $55.72 $58.51 % Increase 5.14% 8.50% 8.11% 8.01% 5.01%
$ Increase $2.15 $3.74 $3.87 $4.13 $2.79
Low Income Senior 1 X $31.83 $32.17 $32.50 $32.84 $33.17 $33.51 % Increase 1.06% 1.04% 1.03% 1.02% 1.01%
$ Increase $0.34 $0.34 $0.34 $0.34 $0.34
Note: the following is a correction to the rates associated with Commercial Recycling Service Monthly Rate. The actual rates according to the Solid Waste Rate Study model are lower than what was advertised in the Proposition 218 Notice. These corrected rates for service are referenced in Attachment A as Exhibit B.
Recommended Rates Current July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 Commercial Recycling Service Monthly Rate ($ per Service) 4 yd bin 4 X $1,165.02 $1,457.49 $1,749.96 $2,042.43 $2,334.90 Corrected 4 yd bin 4 X $776.78 $971.73 $1,166.67 $1,361.62 $1,556.57 6 yd bin 1 X 218.18 $294.79 $371.40 $448.01 $524.62 583.72 Corrected 6 yd bin 1 X $291.29 $364.40 $437.50 $510.61
6 yd bin 2 X $436.27 $589.51 $742.75 $895.98 $1,049.22 $1,167.44 Corrected 6 yd bin 2 X $582.50 $728.74 $874.97 $1,021.21 6 yd bin 3 X $884.37 $1,114.20 $1,344.03 $1,573.86 $1,751.16 Corrected 6 yd bin 3 X $873.86 $1,093.19 $1,312.51 $1,531.84 $1,751.15 6 yd bin 4 X $1,768.52 $2,228.24 $2,687.95 $3,147.67 $3,502.32 Corrected 6 yd bin 4 X $1,165.15 $1,457.58 $1,750.02 $2,042.45 $2,334.86
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.
ATTACHMENTS
Attachment A: Resolution No. 2025-45
Exhibit A: Mailed Proposition 218 Notice
Exhibit B: Solid Waste 5-Year Rate Schedule (Corrected) Attachment B: Bartle Wells Solid Waste Rate Study Report Attachment C: City Staff Presentation
Attachment D: Bartle Wells Presentation