L�SY OF
AGENDA
Pismo Beach City Council
AlSMUBeP�� Tuesday, January 21, 2025
Time
Meeting Type
Physical Location
Virtual Viewing Option
4:30 p.m.
Closed Session
City Hall
None
5:30 p.m.
Regular Meeting ' 2
Council Chamber, City Hall
htt s://usO2web.zoom.us/m/84823715585
'Live virtual viewing is offered via Zoom.
2Broadcast meeting also available for viewing on cable Channel 20 and online at pismobeach.org/agenda.
0. MEETING INSTRUCTIONS:
These meetings are being conducted in a hybrid format with both in -person and virtual options. Ways to watch these meetings and submit public comment are provided below.
Watch and participate in person:
• Regular Meeting: Visit the Council Chamber at City Hall, 760 Mattie Road, Pismo Beach, CA 93449. • To make Regular Meeting public comment, please submit an optional blue "speaker slip" to staff,- the Mayor will ask you to approach the lectern to speak during the public comment period on your item of interest. • To make Closed Session public comment, please be present in the Council Chamber when the Closed Session is publicly convened; the Mayor will call for public comment prior to commencing the closed proceedings.
Watch via Zoom:
• Regular Meeting only. Click this link on any computer or mobile device:
https.IlusO2web.zoom.uslil84823715585. This URL may also be typed into a web browser.
Listen via telephone:
• Regular Meeting only: Call 1-669-900-6833 to join by telephone audio only. Enter Meeting ID 848 2371 5585 when prompted.
Watch online:
• Regular Meeting only: Visit www.pismobeach.org/agenda and scroll to "Upcoming Events." When the live broadcast begins, an `In Progress" link will appear, click this link to watch the livestream. A recording of the meeting will be available on demand shortly after the meeting ends.
Watch on Channel 20:
• Regular Meeting only: Tune to local cable channel 20 in Pismo Beach; the meeting will be broadcast live.
Meetings are also replayed at 9:00 a.m., 6:00 p.m., and 1:00 a.m. each day the following week.
Submit written comment prior to, or during, the meeting:
• Regular Meeting and Closed Session: In advance of the meeting, written comments may be emailed to citycounciI6c�pismobeach.org or mailed or delivered to the City Clerk's Office, 760 Mattie Road, Pismo Beach, CA 93449. During the Regular Meeting no later than the start of the comment period for your item of interest, written comment may be hand -delivered to staff in the Council Chamber. Emails submitted after the start of the meeting may not be fully considered prior to any action taken on the item.
Submit voicemail comment:
• Regular Meeting and Closed Session: Call 805-773-7005 and leave a voicemail before the meeting.
Voicemails submitted after the start of the meeting may not be fully considered prior to any action taken on the item. This automated voicemail line will not be answered or monitored for other purposes.
Please note:
• In the event a Council Member participates in this meeting by teleconference under the provisions of Government Code Section 54953(o, public comment will be accepted via Zoom, including by telephone audio, as required by law. However, the timing of a request by a Council Member to participate remotely may not allow sufficient time to post an agenda containing information on how the public may participate via Zoom or telephone. In such instances, the City Clerk or another staff member will orally provide such information at the meeting.
• Meetings may begin a few minutes after the scheduled start time. • Meetings will be recorded, except closed sessions; these recordings are public record. • Phone numbers of call -in attendees may be visible to other meeting attendees, or in meeting recordings. • Phone numbers of voicemail commenters may be visible in the public record along with transcripts.
Please contact City Clerk Erica Inderlied at cityclerk _pismobeach.org with questions.
Council Agenda 1-21-2025 Page 1 of 7
Pismo Beach City Council Agenda January 21, 2025
Special Closed Session-4:30 p.m.
City Hall, 760 Mattie Road, Pismo Beach, CA 93449
CALL TO ORDER: Mayor Waage
1. ROLL CALL:
Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Guthrie, Inman, Newton
2. ANNOUNCEMENT OF CLOSED SESSION ITEM(S) — Council Chamber Item 2.A: Conference with Legal Counsel — Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code §54956.9: One potential case
3. PUBLIC COMMENT PERIOD — Council Chamber
At this time, members of the public may comment on any item appearing on the agenda.
Please adhere to the following procedures when addressing the Council:
• Please limit your comments to 3 minutes or less.
• Unduly disruptive behavior will not be permitted.
Documents submitted to the Council become public record unless otherwise exempt from disclosure.
4. CLOSED SESSION — Closed Meeting Room
The City Council will convene in Closed Session to discuss the items listed under Item 2 above. In accordance with the Brown Act, public access is not permitted for this portion of the meeting.
5. CLOSED SESSION REPORT — Council Chamber
If a regular meeting immediately follows this Closed Session, the Closed Session Report will be made during the regular meeting.
6. ADJOURNMENT
Meeting Time Date Location
Regular Meeting 5:30 p.m. Tuesday, January 21, 2025 Council Chamber, City Hall Council Agenda 1-21-2025 Page 2 of 7
Pismo Beach City Council Agenda January 21, 2025
Regular Meeting-5:30 p.m.
Council Chamber, City Hall, 760 Mattie Road, Pismo Beach, CA 93449 CALL TO ORDER: Mayor Waage
1. ROLL CALL:
Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Guthrie, Inman, Newton
2. PLEDGE OF ALLEGIANCE
3. ACCEPTANCE OF AGENDA
4. PRESENTATIONS
Item 4.A: Proclamation: Recognizing January 2025 as National Mentorship Month (Big Brothers Big Sisters of San Luis Obispo County)
Item 4.13: Presentation: Introduction of New Employees
• Nicholas Deming, Police Officer (Smith)
• Amor Hernandez, PT Parking Enforcement Officer (Smith) • Jessie Jagonase Jr., PT Parking Enforcement Officer (Smith) • Jesus -Gabriel Navarro, Wastewater Operator (James)
5. PUBLIC COMMENT PERIOD
At this time, members of the public may comment on any item NOT appearing on the agenda. For items appearing on the agenda, including the Consent Calendar, the public will be invited to make comments during Council consideration of the item. In accordance with state law, matters raised as part of this comment period cannot be discussed or acted upon by the City Council at this time.
However, in response to a matter raised as part of this comment period, the Council may, during Item 13, City Council Comments and Requests, direct staff to assist a speaker, or schedule the matter for consideration on a future agenda.
Please adhere to the following procedures when addressing the Council:
• Please limit your comments to 3 minutes or less.
• Unduly disruptive behavior will not be permitted.
Documents submitted to the Council become public record unless otherwise exempt from disclosure.
6. CITY MANAGER'S REPORT - No action to be taken
7. CITY ATTORNEY'S REPORT / CLOSED SESSION REPORT - No action to be taken Council Agenda 1-21-2025 Page 3 of 7
Pismo Beach City Council Agenda January 21, 2025
8. COUNCIL COMMITTEE REPORTS
1. Air Pollution Control District, SLO County (Newton/Reiss)
10. Integrated Waste Management Authority (Newton/Inman)
2. California Joint Powers Insurance Authority (Reiss/Inman)
11. Mobile Home Rent Stabilization Subcommittee (Inman/Waage)
3. Central Coast Blue Regional Recycled Water Authority
12. Regional Transit Authority, SLO (Waage/Reiss)
(Waage/Guthrie)
13. Shell Beach Improvement Group Liaison (Inman/Reiss)
4. Chapman Estate Foundation (Liaison) (Reiss)
14. SLOCOG (Waage/Reiss)
5. Coastal Cities Group, League of CA Cities (Waage)
15. South County Chambers Gov't Affairs (Guthrie/Inman)
6. Conference and Visitors Bureau / LBID Board (Liaison) (Inman)
16. Visit SLO CAL Advisory Committee (Inman)
7. Friends of Price House Liaison (Waage)
17. Water Resources Advisory Committee, SLO (Guthrie/Inman)
8. Hazard Mitigation & Fire Safety (Inman/Waage)
18. Zone 3 Water Advisory Committee, SLO (Guthrie/Inman)
9. Homeless Services Oversight Council (Guthrie/Reiss)
(Govf Code Section 53232.3)
9. CONSENT CALENDAR
All Consent Calendar items will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration. Public comment on Consent Calendar items will be invited prior to action on the Calendar.
Item 9.A: Adoption of Meeting Minutes (Inderlied)
Recommendation:
1. Adopt Minutes of the December 17, 2024 Regular Meeting.
2. Adopt Minutes of the January 9, 2025 Closed Session.
Item 9.113: Payroll Register and Register of Demands (Feeser) Recommendation:
1. Approve the Summary of Payroll Register for December 15, 2024 and December 29, 2024;
2. Approve the Register of Demands for December 6, 2024, December 13, 2024, December 20, 2024, December 27, 2024, and January 3, 2025.
Item 9.C: Revisions to the City Investment Policy (Feeser) Recommendation:
Approve the revised City of Pismo Beach Investment Policy.
Item 9.D: Monthly Investment Transaction Report of the City's Cash and Investments for November 2024 of Fiscal Year 2025 (Feeser) Recommendation:
No action recommended; for information only.
Item 9.E: Paid Parking Quarterly Update -Second Quarter of Fiscal Year 2025 (Graham)
Recommendation:
No action recommended, for information only.
Council Agenda 1-21-2025 Page 4 of 7
Pismo Beach City Council Agenda January 21, 2025
Item 9.F: Update on January 9, 2023 and January 12, 2017 Emergency Proclamations (Inderlied)
Recommendation:
1. Review the need for continuing currently active local emergency proclamations;
2. Provide direction to staff if desired.
Item 9.G: Annual Pavement Cut Moratorium Update (James) Recommendation:
No action recommended; for information only.
Item 9.1-1: AB 2449/AB 2302 Legislative Meeting Teleconference Policy and Procedure (Inderlied)
Recommendation:
Adopt a Resolution establishing policies and procedures for compliance with Assembly Bills 2449 and 2032 relating to teleconference participation in legislative meetings; rescinding Resolution R-2023-021.
10. ITEMS PULLED FROM CONSENT CALENDAR
1 11. PUBLIC HEARINGS - No earlier than 6:00 am. I
GENERAL PROCEDURES FOR PUBLIC HEARINGS (Mayor/Presiding Officer reserves discretion to set speaking allowances):
1. City staff will present the staff report and recommendation, and respond to technical/clarifying questions from Council;
2. Mayor will open the public hearing, and invite the project applicant, or representative, to present the project (Limited to 10 mins);
3. In an Appeal Hearing, the Mayor will then invite the appellant, or representative, to present their appeal (Limited to 10 mins);
4. Mayor will then ask other interested persons to testify regarding the project (Limited to 3 mins per speaker);
5. Mayor will invite the project applicant, or representative, to make a rebuttal if desired (Limited to 5 mins);
6. In an Appeal Hearing, the Mayor will then invite the appellant, or representative, to make a rebuttal if desired (Limited to 5 mins);
7. Mayor will close the public hearing, following which the Council will deliberate and act on the matter.
Item 11.A: Third Amendment to the Amended and Restated Solid Waste Collection Franchise Agreement with South County Sanitary Service, Inc. for Solid Waste Collection Services and Adoption of Integrated Solid Waste Rates effective January 1, 2025 and each January 1 from 2026 through 2029 via a New Rate Adjustment Methodology (Feeser)
Recommendation:
1. Adopt a Resolution approving, and authorizing the City Manager to execute, a third amendment to the Amended and Restated Solid Waste Collection Franchise Agreement with South County Sanitary Service, Inc. for solid waste collection services;
2. Conduct a public hearing to hear public comment on proposed solid waste rates;
3. Adopt a Resolution approving Integrated Solid Waste rates charged by South County Sanitary Service effective January 1, 2025 and each January 1 from 2026 through 2029 via a new rate adjustment methodology.
Council Agenda 1-21-2025 Page 5 of 7
Pismo Beach City Council Agenda January 21, 2025
12. BUSINESS ITEMS - May be reordered and heard prior to Public Hearings Item 12.A: City Council Confirmation of the Director of Public Works (Garcia) Recommendation:
Confirm the City Manager's appointment of Rosemarie Gaglione to serve as Director of Public Works in accordance with Pismo Beach Municipal Code Section 2.08.050.
Item 12.13: 2025 State Legislative Agenda (James)
Recommendation:
Approve the 2025 State Legislative Agenda.
Item 12.C: Progress Report on Fiscal Year 2024 & 2025 City Council Goals (Garcia) Recommendation:
Receive a progress report on the City Council's Fiscal Year 2024 &2025 Goals.
13. CITY COUNCIL COMMENTS AND REQUESTS - No action to be taken
14. ADJOURNMENT
To the following meeting(s). Special and Closed Session times may be subject to change, as noticed. Meetings will be held in a hybrid in -person / virtual format unless otherwise noted:
Meeting Time Date Location
Special Meeting 10:00 a.m. Friday, January 24, 2025 147 Stimson Ave., Pismo Beach Regular Meeting 5:30 p.m. Tuesday, February 4, 2025 Council Chamber, City Hall Closed Session Immediately Tuesday, February 4, 2025 Council Chamber, City Hall following
Regular Council meetings will adjourn by 11:00 p.m. unless four -fifths of the Council votes to continue past that time. If the meeting is adjourned at 11:00 p.m., any remaining agenda items will be continued to the next regular meeting (R-97-04).
AFFIDAVIT OF POSTING
I, Erica Inderlied, City Clerk for the City of Pismo Beach, declare under penalty of perjury that the foregoing agenda for the January 21, 2025 meeting(s) of the Pismo Beach City Council was posted on January 16, 2025, at City Hall, located at 760 Mattie Road, Pismo Beach, CA, as well as on the City's website.
Clerk
Meeting Schedule: The City Council of Pismo Beach regularly meets on the first and third Tuesdays of each month at 5:30 p.m., unless otherwise noticed. Closed and Special sessions will be duly noticed as needed.
Council Agendas: Agendas for Regular Meetings are available for public review on the City's website at pismobeach.ora/agenda and upon request from the City Clerk's Office, typically by 4:00 p.m. on the Thursday prior to the meeting, but no later than 72 hours prior to the meeting. Agendas for Closed Sessions and other Special meetings are made available at least 72 hours prior to the meeting when possible, but no later than 24 hours prior to the meeting.
Council Agenda 1-21-2025 Page 6 of 7
Pismo Beach City Council Agenda January 21, 2025
Related Materials: All materials submitted to the Council relating to items on this agenda are open for public inspection unless otherwise exempt by law. Staff reports and attachments published as part of this agenda packet, as well as copies of correspondence received relating to these agenda items and materials distributed at the meeting, may be obtained 1) in the consolidated online Agenda Center at pismobeach.org/agenda, 2) in the Access Pismo public records portal at pismobeach.orq/accesspismo, 3) by request from the City Clerk at einderlied .pismobeach.org, or 4) in person at the City Clerk's Office, City Hall, 760 Mattie Road, Pismo Beach, Mon --Fri 8:00 a.m.--5:00 p.m. Please call (805) 773-7003 with any questions.
Broadcasting: Regular (televised) City Council meetings are available for viewing 24/7 at pismobeach.org/agenda, broadcast live on Channel 20, and re -broadcast during the week following the meeting on Channel 20 at 9:00 a.m., 6:00 p.m., and 1:00 a.m. each day.
Use of Equipment: Please contact the City Clerk's Office if requesting to use the chamber equipment during public comment or as part of a scheduled presentation, 24 hours prior to the meeting at (805) 773-7003.
Notice Regarding Americans with Disabilities Act
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting or if you need agenda documents provided in an alternative format, please contact the City Clerk's Office at 773-7003 as soon as possible prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102-
35.104 ADA Title II).
Council Agenda 1-21-2025 Page 7 of 7
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A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA RECOGNIZING JANUARY 2025 AS NATIONAL MENTORSHIP MONTH WHEREAS, Big Brothers Big Sisters of San Luis Obispo County's mission is to create and support one-to-one mentoring relationships to ignite the power and promise of youth; and WHEREAS, Big Brothers Big Sisters of San Luis Obispo County has provided 30 years of life - changing mentoring programs that promote education, healthy relationships, positive self- esteem and life-long growth; and
WHEREAS, Big Brothers Big Sisters' volunteer mentors have improved the lives of more than 4,000 local children since opening in 1995; and
WHEREAS, Big Brothers Big Sisters' mentoring programs are an evidence -based, prevention program with statistically significant effectiveness at reducing drug use and violence, and improving youth mental health and academic performance; and WHEREAS, 98 percent of children in Big Brothers Big Sisters' program graduate from high school and 75 percent continue their post high school education; and WHEREAS, volunteer mentors and professional staff support family wellness and ensure that child safety standards are met; and
WHEREAS, Big Brothers Big Sisters of San Luis Obispo County's volunteers invested over 19,200 hours of volunteer time in 2024, which is valued at $643,008 by The Independent Sector; and
WHEREAS, Big Brothers Big Sisters of San Luis Obispo County has been honored with numerous awards by Big Brothers Big Sisters of America, including the prestigious 2023 Growth Award; and
WHEREAS, the City of Pismo Beach formally recognizes the month of January as National Mentoring Month and embraces the vision that all children should achieve their full potential.
NOW, THEREFORE, the City Council of the City of Pismo Beach hereby recognizes Big Brothers Big Sisters of San Luis Obispo County, on their 30th Anniversary year, for the quality youth mentoring programs that they provide for the children and families in San Luis Obispo County.
Dated this 21st day of January, 2025
Ed Waage, Mayor
■ Council Agenda 1-21-2025 4.A-1 ■
i� .i
G\T Y Op
PISMO BEACH CITY COUNCIL STAFF REPORT
'0�syo Be
Pc� Agenda Item #9.A
Meeting Date: January 21, 2025
TITLE:
Adoption of Meeting Minutes
RECOMMENDATION:
1. Adopt Minutes of the December 17, 2024 Regular Meeting.
2. Adopt Minutes of the January 9, 2025 Closed Session.
DISCUSSION:
Attached for the Council's consideration are the draft minutes of the subject meetings for review and adoption.
FISCAL IMPACT:
There is no fiscal impact associated with the preparation or adoption of meeting minutes.
ATTACHMENTS:
1. Draft Minutes of the December 17, 2024 Regular Meeting
2. Draft Minutes of the January 9, 2025 Closed Session.
Submitted by:
Erica Inderlied, City Clerk
City Manager Approval:
Council Agenda 1-21-2025 9.A-1
Attachment 1
Y
DRAFT MINUTES
- Pismo Beach City Council
A•SMo BEPcs Tuesday, December 17, 2024
Regular Meeting-5:30 p.m.
Council Chamber, City Hall, 760 Mattie Road, Pismo Beach, CA 93449 The City Council of the City of Pismo Beach met this date in a regular session with Mayor Waage presiding.
CALL TO ORDER: 5:30 p.m.
1. ROLL CALL:
Present: Absent:
Mayor Ed Waage None
Mayor Pro Tern Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton
Staff Present:
Nadia Feeser, Administrative Services Director
Scot Graham, Community Development Director
David Fleishman, City Attorney
Jorge Garcia, City Manager
Erica Inderlied, City Clerk
Gordon Jackson, Director of Tourism and Events
Mike James, Assistant City Manager / Acting Public Works Director Paul Lee, Battalion Chief
Jeff Smith, Chief of Police
Other staff present as noted below
2. PLEDGE OF ALLEGIANCE
Mayor Waage led the Pledge of Allegiance.
3. ACCEPTANCE OF AGENDA
No requests to reorder the agenda.
Council Agenda 1-21-2025 9.A-2
Attachment 1
12. BUSINESS ITEM - Reordered
Item 12.A: Certification of November 5, 2024 General Election Results (Inderlied) Recommendation:
Adopt a Resolution reciting the fact of the General Municipal Election held on Tuesday, November 5, 2024, declaring the result and such other matters as provided by law.
Presenting staff:
Jorge Garcia, City Manager
Erica Inderlied, City Clerk
Call for public comment: No comment.
Action: Adopt a Resolution reciting the fact of the General Municipal Election held on Tuesday, November 5, 2024, declaring the result and such other matters as provided by law.
Motion: Reiss
Second: Inman
Vote: The motion passed on the following vote:
Ayes:
5 Reiss, Inman, Guthrie, Newton, Waage
Noes:
0 Absent:
0 Abstain:
0 Recused:
0 Legislative Record: Resolution R-2025-074 adopted.
4. PRESENTATIONS
Item 4.A: Oath of Office for Incoming Mayor and Council Members (Inderlied) Recommendation:
No Council action is recommended.
Presenting staff:
Erica Inderlied, City Clerk
Oaths of office were administered to officials elected on November 5, 2024:
• Ed Waage, for the office of Mayor, for a term ending December 2026; Council Agenda 1-21-2025 9.A-3
Attachment 1
Item 4.13
• Marcia Guthrie, for the office of City Council Member, for a term ending December 2028;
• Scott Newton, for the office of City Council Member, for a term ending December 2028.
Call for public comment:
Jeanette Vierra commented.
Action: No action.
Selection of Mayor Pro Tempore for a Two -Year Term (Inderlied) Recommendation:
1. Nominate at least one Member of the City Council to serve as Mayor Pro Tempore;
2. Conduct a vote on any nominated Members and appoint the Member receiving the highest number of votes to a two-year term, through December 2026.
Presenting staff:
None
1. Nominee: Newton
Nominator: Guthrie
Vote:
Ayes: 2
Noes: 3
Absent: 0
Abstain: 0
Recused: 0
2. Nominee: Reiss
Nominator: Inman
Vote:
Guthrie, Newton
Inman, Reiss, Waage
Ayes:
4 Inman, Newton, Reiss, Waage
Noes:
1 Guthrie
Absent:
0 Abstain:
0 Recused:
0 Action: Appoint Mary Ann Reiss to serve as Mayor Pro Tempore for a two- yearterm.
Council Agenda 1-21-2025 9.A-4
Attachment 1
5. PUBLIC COMMENT PERIOD
Call for public comment: No comment.
6. CITY MANAGER'S REPORT
City Manager Garcia commented on various topics.
7. CITY ATTORNEY'S REPORT / CLOSED SESSION REPORT
City Attorney Fleishman had nothing to report.
8. COUNCIL COMMITTEE REPORTS
The Council reported on recent and upcoming meetings of various external bodies:
Council Member Inman:
Visit SLO CAL Advisory Board.
Mayor Waage:
San Luis Obispo County Community Fire Safe Council.
9. CONSENT CALENDAR
Call for public comment: No comment.
Action: Adopt Consent Calendar.
Motion: Guthrie
Second: Newton
Vote: The motion passed on the following vote (Items 9.A through 9.D):
Ayes:
5 Guthrie, Newton, Inman, Reiss, Waage
Noes:
0 Absent:
0 Abstain:
0 Recused:
0 Item 9.A: Adoption of Meeting Minutes (Inderlied)
Recommendation:
1. Adopt Minutes of the September 18, 2023 Closed Session.
2. Adopt Minutes of the September 26, 2023 Regular Meeting.
3. Adopt Minutes of the February 13, 2024 Special Meeting.
Council Agenda 1-21-2025 9.A-5
Attachment 1
4. Adopt Minutes of the February 21, 2024 Special Meeting.
5. Adopt Minutes of the December 3, 2024 Regular Meeting.
Item 9.13: Payroll Register and Register of Demands (Feeser) Recommendation:
1. Approve the Summary of Payroll Register for November 17, 2024 and December 1, 2024;
2. Approve the Register of Demands for November 22, 2024 and November 29, 2024.
Item 9.C: Notice of Completion for the Toucan Terrace Pipeline Recoating Project (James)
Recommendation:
1. Accept the Toucan Terrace Pipeline Recoating Project as complete;
2. Authorize the City Manager to sign, and the City Clerk to record, a Notice of Completion for the project.
Item 9.D: California Department of Tax and Fee Administration Resolutions to Implement Transactions and Use Tax Measure F-24, Effective April 1, 2025 (Feeser)
Recommendation:
1. Adopt a Resolution authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration for implementation of a transactions and use tax.
2. Adopt a Resolution authorizing the California Department of Tax and Fee Administration to examine transactions and use tax records.
Legislative Record: Resolution R-2025-075 adopted.
Legislative Record: Resolution R-2025-076 adopted.
10. ITEMS PULLED FROM CONSENT
None.
11. PUBLIC HEARINGS
None.
Council Agenda 1-21-2025 9.A-6
Attachment 1
12. BUSINESS ITEMS
Item 12.13: 2025 Federal Legislative Agenda (James)
Recommendation:
Approve the 2025 Federal Legislative Agenda.
Presenting staff:
Jorge Garcia, City Manager
Supplemental material submitted into the record.
Guest presenters:
Greg Burns, Thorn Run Partners
Call for public comment: No comment.
Action: Approve the 2025 Federal Legislative Agenda, with the following revision:
Add a section pertaining to bluff protection and coastal access, with a support position, consistent with City goals.
Motion: Inman
Second: Reiss
Vote: The motion passed on the following vote:
Ayes:
5 Inman, Reiss, Guthrie, Newton, Waage
Noes:
0 Absent:
0 Abstain:
0 Recused:
0 Item 12.C: Authorization for the Purchase of a New Restroom at Addie Street from the Public Restroom Company (James)
Recommendation:
1. Adopt a Resolution authorizing the purchase of a new restroom for the Addie Street Parking Lot from the Public Restroom Company in the amount of $693,614; and
2. Authorize staff to advertise for construction bids for the Addie Street Restroom Project.
Council Agenda 1-21-2025 9.A-7
Attachment 1
Item 112.10
Presenting staff:
Jorge Garcia, City Manager
Scot Graham, Community Development Director
Mike James, Assistant City Manager
Paul Lee, Battalion Chief
Supplemental material submitted into the record.
Call for public comment: No comment.
Action: Consensus to direct staff to re-evaluate the design of the restroom building, potentially incorporating more restroom stalls, and potentially relocating the planned lifeguard facilities to another location in order to allow for the creation of more restroom stalls, and return to the Council for further action.
In support:
5 Guthrie, Inman, Newton, Reiss, Waage
In opposition:
0 Absent:
0 Abstain:
0 Recused:
0 External Committee Assignments for Calendar Years 2025 and 2026 (Inderlied)
Recommendation:
1. Provide input to the Mayor on the assignment of Council Members to various internal and external boards and committees for calendar years 2025 and 2026; and
2. Affirm the Mayor's assignments.
Presenting staff:
None
Call for public comment: No comment.
Action: Consensus in support of the following internal and external assignments for calendar years 2025 and 2026:
Assignment
Primary
Alternate
Air Pollution Control District
Newton
Reiss
California Joint Powers Insurance Authority
Reiss
Inman
Central Coast Blue Regional Recycled Water Authority
Waage
Guthrie
Chapman Estate Foundation
Reiss
None
Conference & Visitors Bureau Board
Inman
None
Friends of Price House
Waage
None
Council Agenda 1-21-2025 9.A-8
Attachment 1
Hazard Mitigation & Fire Safety
Inman
Waage
Homeless Services Oversight Council
Guthrie
Reiss
Integrated Waste Management Authority
Newton
Inman
League of CA Cities Coastal Cities Group
Waage
None
Mobile Home Rent Stabilization
Inman
Waage
San Luis Obispo Council of Governments
Waage
Reiss
San Luis Obispo Regional Transit Authority
Waage
Reiss
Shell Beach Improvement Group
Inman
Reiss
SLO County Water Resources
Guthrie
Inman
South County Chambers of Commerce
Guthrie
Inman
Visit SLO CAL
Inman
None
Zone 3 Water
Guthrie
Inman
In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0
Absent: 0
Abstain: 0
Recused: 0
13. CITY COUNCIL COMMENTS AND REQUESTS
The Council commended Police Corporal Brian Hanson for the quality of his recent service to the public.
Consensus to direct staff to include discussion of paid parking hours in the Price Street corridor as a topic for the January 24, 2025 Goal -Setting Workshop.
14. ADJOURNMENT
At 7:35 p.m.
APPROVED:
Ed Waage, Mayor
ATTEST:
Erica Inderlied, City Clerk
Council Agenda 1-21-2025 9.A-9
Attachment 2
Y
DRAFT MINUTES
- Pismo Beach City Council
A•SMo BEPcs Thursday, January 9, 2025
Special Closed Session-11:30 a.m.
City Hall, 760 Mattie Road, Pismo Beach, CA 93449
The City Council of the City of Pismo Beach met this date in a special closed session with Mayor Waage presiding.
CALL TO ORDER: Mayor Waage called the meeting to order at 11:31 a.m.
1. ROLL CALL:
Present: Absent:
Mayor Ed Waage None
Mayor Pro Tern Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman (via teleconference)
Council Member Scott Newton
Staff Present:
David Fleishman, City Attorney
Jorge Garcia, City Manager
2. ANNOUNCEMENT OF CLOSED SESSION ITEMS
City Attorney Fleishman announced the Closed Session item listed below.
Item 2.A: Conference with Legal Counsel — Existing Litigation (Paragraph (1) of subdivision (d) of Government Code §54956.9) Name of Case: San Luis Obispo Coastkeeper, et. al v. County of San Luis Obispo, U.S. District Court Central District of California (Western Division — Los Angeles), Case No. 2:24-cv-06854-SPG-AS
3. PUBLIC COMMENT PERIOD
Call for public comment: No comment.
4. CLOSED SESSION
The Council retired to Closed Session to consider the above items.
Council Agenda 1-21-2025 9.A-10
Attachment 2
5. CLOSED SESSION REPORT
City Attorney Fleishman would report in the next regular open session that no reportable action was taken on the above item.
6. ADJOURNMENT
At 12:05 p.m.
APPROVED:
Ed Waage, Mayor
ATTEST:
Erica Inderlied, City Clerk
Council Agenda 1-21-2025 9.A-11
\T Y Op
PISMO BEACH CITY COUNCIL STAFF REPORT
A�s'yo Be
Agenda Item #9.13
Meeting Date: January 21, 2025
TITLE:
Payroll Register and Register of Demands
RECOMMENDATION:
1. Approve the Summary of Payroll Register for December 15, 2024 and December 29, 2024;
2. Approve the Register of Demands for December 6, 2024, December 13, 2024, December 20, 2024, December 27, 2024, and January 3, 2025.
DISCUSSION:
Attached are the Summary of Payroll Register(s) and Register(s) of Demands (Check Registers) noted above, provided for Council approval.
FISCAL IMPACT:
As demonstrated in the attached payroll and check registers.
ATTACHMENTS:
1. Payroll Summary
2. Registers of Demands
Submitted by: Nadia Feeser, Administrative Services Director/City Treasurer City Manager Approval:
Council Agenda 1-21-2025 9.13-1
Attachment 1
SUMMARY PAYROLL REGISTER
FOR PERIOD ENDING 12/15/24
CHECKS DATED 12/20/24
PAYROLL CHECKSAND DIRECT DEPOSIT TRANSACTIONS
Checks -
ACH 127
EARNINGS
REGULAR 390,303.73
HOLIDAY 5,529.52
OVERTIME (Includes Comp Time Payouts) 26,696.47
Administration
Building
Conference & Visitors Bureau
Police Department
18,091.36
Parking
Engineering
Fire
Recreation
394.83
Public Works
2,326.81
Water
2,746.48
Wastewater
3,136.99
Motor Vehicles
Subtotal -Overtime $
26,696.47
SALARY ADJUSTMENTS
TRAINING / UNIFORM ALLOWANCE
138.75
OTHER EARNINGS
12,294.62
$434,963.09
LESS AUTHORIZED PAYROLL DEDUCTIONS
FEDERAL WITHHOLDING TAX
44,615.34
FICA & MEDICARE
28,174.47
STATE INCOME TAX
17,714.28
STATE DISABILITY INSURANCE
4,635.57
GARNISHMENTS
1,498.90
HEALTH
7,045.45
SUPPLEMENTAL DISABILITY
1,311.47
SECTION 125
1,514.15
PIERS
36,842.15
DEFERRED COMPENSATION
12,867.40
ADDITIONAL LIFE INSURANCE
349.75
UNION DUES
2,224.01
PISMO ATHLETIC CLUB
630.00
OTHER
NET PAYROLL
$275,540.15
DIRECT DEPOSIT DEDUCTION
275,540.15
NET PAYROLL AFTER ACH DEPOSIT
0.00 Council Agenda 1-21-2025 9.13-2
Attachment 1
SUMMARY PAYROLL REGISTER
FOR PERIOD ENDING 12/29/24
CHECKS DATED 01/03/25
PAYROLL CHECKS AND DIRECT DEPOSIT TRANSACTIONS
Checks -
AC H 128
EARNINGS
REGULAR 383, 342.61
HOLIDAY 5,539.71
OVERTIME (Includes Comp Time Payouts) 11,053.16
Administration
Building
Conference & Visitors Bureau
Police Department
5,809.37
Parking
Engineering
Fire
Recreation
Public Works
482.08
Water
1,870.08
Wastewater
2,891.63
Motor Vehicles
Subtotal -Overtime $
11,053.16
SALARY ADJUSTMENTS
TRAINING / UNIFORM ALLOWANCE
123.00
OTHER EARNINGS
14,164.62
414,223.10
LESS AUTHORIZED PAYROLL DEDUCTIONS
FEDERAL WITHHOLDING TAX
38,159.07
FICA & MEDICARE
31,928.36
STATE INCOME TAX
15,155.56
STATE DISABILITY INSURANCE
4,797.12
GARNISHMENTS
1,498.90
HEALTH
7,045.45
SUPPLEMENTAL DISABILITY
1,263.36
SECTION 125
2,994.08
PERS
35,609.10
DEFERRED COMPENSATION
13,802.89
ADDITIONAL LIFE INSURANCE
349.75
UNION DUES
2,215.09
PISMO ATHLETIC CLUB
720.00
OTHER
NET PAYROLL
$258,684.37
DIRECT DEPOSIT DEDUCTION
258,684.37
NET PAYROLL AFTER ACH DEPOSIT
0.00 Council Agenda 1-21-2025 9.13-3
Attachment 2
City of Pismo Beach
Final Disbursement List Check Date 12/06/2024
US BANK
ACH/ Vendor Check
Check# Number Payee Amount Description
ACH
10002
Internal Revenue Service
$ 148,598.61
Federal Income Tax PD 12/06/24
ACH
11208
SEW Local 620 AFL/CIO
908.32
SEW Dues PD 12/06/24
ACH
11305
Public Employees Retirement System
156,987.79
PERS Retirement from Springbrook EE & ER PD 12/06/2024
ACH
12211
CA. Public Emp Retirement Sys
116,571.35
Medical Insurance - December 2024
ACH
12260
dba: Mission Square ICMA Retirement Trust - 457
25,664.43
ICMA 457 Deferred Comp EE & ER PD 12/06/24
ACH
12305
Franchise Tax Board
33,991.44
State Income Tax & SDI - PD 12/06/24
ACH
12360
CalPERS 457 Plan
291.67
PERS 457 Deferred Comp ER PD 12/06/24
ACH
12708
dba: Mission Square ICMA Retirement Trust -Roth
IRA
525.00
ICMA Roth IRA PD 12/06/24
ACH
12944
Leaf
91.06 Monthly PD Copier Lease Nov 2024
131896
10434
Abalone Coast Analytical Inc
144.00
Water Analysis
131897
10695
AFLAC
2,781.95
Supplemental Disability Insurance - Nov 2024
131898
12841
Robert Brenman
43.75 Band Member for Senior Dance 11/12/24
131899
14414
California State Disbursement Unit
415.38
Tax Withholding Order- PD 12/06/24
131900
14771
California State Disbursement Unit
16.15 Tax Withholding Order- PD 12/06/24
131901
14876
California State Disbursement Unit
784.61
Tax Withholding Order- PD 12/06/24
131902
14855
California's Best Janitorial
480.00
Event Rental Cleaning
131903
12134
Camp Fire Usa
1,000.00
Deposit Refund
131904
14554
Jeffrey Cardinal
43.75 Band Member for Senior Dance 11/12/24
131905
14889
Central Coast Security
275.00
Security Services
131906
12224
Delta Dental Of California
6,823.96
Dental Premiums - Dec 2024
131907
14217
Deltina Coffee Roasters
62.50 Coffee
131908
UB*01143
HARINDER DHILLON
39.79 Refund Check 019560-000, 134 PALOMAR
131909
10574
Environmental Resource Assoc.
322.98
Lab
131910
14741
Epic Entertainment, Inc.
475.00
Pier Centennial Entertainment
131911
14741
Epic Entertainment, Inc.
2,620.00
Holiday Party Entertainment
131912
13586
Famcon Pipe & Supply Inc.
462.25
Distribution Maintenance
131913
12123
Farm Supply
93.71 Maintenance Supplies
131914
14222
Teresa Franco
33.88 Reimbursement for supplies
131915
12952
GSI Water Solutions Inc
5,352.38
NCMA Annual Report -June/July 2024
131917
11833
Keylock Security Specialists
9.70 Facility Maintenance
131918
14125
Natalie Lancor
300.00
Painting: Pismo Coast Village
131919
14929
Thomas Means
68.00 K9 Boarding
131920
10097
Miners Hardware
103.74
Maintenance Supplies
131921
14611
Jon Wayne Mounts
43.75 Band Member for Senior Dance 11/12/2024
131922
14878
Nevada State Treasurer
2.00 Tax Withholding Order Fee - PD 12/06/24
131923
10753
Nick's Telecom
1,260.00
Vehicle Maintenance
131924
14343
ODP Business Solutions, LLC
78.95 Office Supplies
131925
UB*01144
LAURIE ORMONDE (T)
38.92 Refund Check 019489-000, 350 Stimson
131926
13344
Pacific Gas and Electric CFM/PPC Dept
3,020.63
1000 Bello - Advanced Credit
131927
12070
Michelle Pearson
388.08
MWE & Mileage: AFSS Quarterly Meeting 12/11/24
131928
10633
Pismo Beach Athletic Club Inc
945.00
PBAC Dues collected for December 2024
131929
12022
Pismo Beach Police Officer's Association
1,321.00
PDA Dues PD 12/06/24
131930
12335
Procare Janitorial Supply Inc
467.21
Janitorial Supplies
131931
12028
San Luis Obispo County Public Works Dept
770,033.61
Semi Annual Lopez Water Contract FY 24/25
131932
13994
SBRK Finance Holdings, Inc.
6,550.00
CivicPay IVR Subscription
131933
14877
SCaDU
230.76
Tax Withholding Order- PD 12/06/24
131934
14880
Scherle Specialties LLC
1,935.01
Vehicle Repairs
131935
12925
Smith's Alarms & Electronics
90.00 Security Monitoring - Price House Dec - Feb 2025
131936
14977
Kelli Stein
500.00
Deposit Refund
131937
12806
Donald G. Stever
43.751
Band Member for Senior Dance 11/12/2024
131938
11323
Streator Pipe & Supply
78.66 Maintenance Supplies
131939
14972
Katherine A Taylor
300.00
Painting: Pismo Coast Village
131940
UB*01142
THE 1.F WILL COMPANY, INC.
788.52
Refund Check 019631-000, 100 FIVE CITIES HYD
131941
13097
The Standard
1,460.47
Life & Additional Life Insurance Premiums - Dec 2024
131942
13073
VSP- Vision Service Plan (CA)
1,595.42
VSP Vision Coverage Dec 2024
131943
10446
Achievement House, Inc.
15,229.55
Pismo Beach Litter Removal & Clean-up Services Oct 2024 & Sidewalk Cleaning Services & Pressure Washing - Oct 2024 & Shell Beach Litter Removal & Clean-up Services - Oct 2024
131944
13158
Advantage Technical Services, Inc
23,949.00
Toucan Terrace - CM Services - Oct 2024
131945
11882
Alexander's Contract Services Inc
3,193.87
Water Meter Reading Services Nov 2024 & Water Meter Reading Services Credit Aug 2024
131946
12433
Alpha Electrical Service Inc
644.00
Electrical Repairs
Council Agenda 1-21-2025 9.134
Attachment 2
131947
14869
Michael Brannagan
5,220.00
Database Management
131948
11392
Brenntag Pacific Inc.
2,151.56
Sodium Bisulfite - Nov 2024
131949
10626
California Highway Adoption Co
1,050.00
Highway 101On/Off Ramp Mitigation - Nov 2024
131950
14855
California's Best Janitorial
42,618.75
Janitorial Services -August & October 2024
131951
12610
CalPortland Construction
449,361.57
2022 Paving Project - Sept 2024
131952
10085
Cannon Corp
1,400.01
Additional Services - Ocean Blvd CM
131953
11451
Channel Islands Technology Integrators' Group
12,919.00
Infrastructure Management - Nov 2024
131954
14415
CLAD Consulting, Inc.
3,930.00
On -Call Engineering Services Oct 2024 & PIP Inspections - Sept 30 - Oct 14 - 2024 & MS4 Permit Support - Sep 30 to Oct 14 2024
131955
14353
Motorola Solutions, Inc.
41,007.50
In -Car Video Equipment, Software and Installation
131956
UB*01145
OLYMPUS & ASSOCIATES, INC
791.08
Refund Check 019632-000, 228 IRISH HYD
131957
11337
Perry's Electric Motor & Controls, Inc.
2,464.10
Water Motor and Pump Repairs
131958
14701
Pre Con Industries
84,858.19
Parking Annex Retention Release
131959
14843
Schaaf & Wheeler, Consulting Civil Engineers
16,765.00
Drainage Master Plan - Oct 2024
131960
14557
Securitas Technology Corporation
637.61
Service Call - 760 Mattie Rd - Nov 2024 & Security & Fire Monitoring - Site g10797712-1243 Ocean & Security & Fire Monitoring -Site #10761289 - 230 Leeward
131961
11722
SP Maintenance Services Inc
5,157.67
Parking Lot and Street Sweeping Services - October 2024 131962
14757
Quincy Storm
956.25
Graphic Art Design and Edits
131963
13442
Thorn Run Partners
5,000.00
Federal Lobbying Services Nov 2024
131964
12461
TJA Advertising
103,479.37
CVB Advertising and Promotion Oct 2024 & LBID Advertising and Promotion Oct 2024
131965
12860
Townsend Public Affairs
4,500.00
State Lobbying Services Nov 2024
131966
10971
Giles Clayton Tuckfield
1,267.50
Water & Wastewater Financial Plans Update Study FY25
131967
12527
Water Systems Consulting Inc
43,316.151
Central Coast Blue PM - Sept and Oct 2024 & Central Coast Blue Feasibility Analysis - Oct 2024
Total: $ 2,169,421.62
Council Agenda 1-21-2025 9.13-5
Attachment 2
City of Pismo Beach
Final Disbursement List Check Date 12/13/2024
US BANK
ACH/ Vendor Check
Check# Number Amount
ACH
11224
Richards, Watson, Gershon Attorneys At Law
$ 30,075.41
Professional Legal Services - Oct 2024
ACH
12944
Leaf
1,231.19
Monthly Copier Lease FY Nov 2024
131968
14078
5-Cities Community Service Foundation
73.00 Membership Dues - Nov 2024
131969
10434
Abalone Coast Analytical Inc
144.00
Water Analysis
131970
12275
Airgas West Inc
63.18 Oxygen - Fire - Nov 2024
131971
10800
Whitney Almaguer
1,248.00
Instructor: Creative Kids Fall Theater; 9/10-11/19/24
131972
12433
Alpha Electrical Service Inc
2,642.00
WW Electrical Repairs Nov 2024
131974
11096
Arroyo Grande Chevrolet
2,142.78
Vehicle Maintenance
131975
13460
AT&T Mobility 287284035974
1,185.00
Cell Phone Service - Nov 2024
131976
14514
BEK Collective Inc
2,508.75
James Way Beautification Design - Sept -Nov 2024
131977
14807
Richard Blessing
168.84
Mileage: Wastewater Treatment Grade 2 Test 11/6/24
131978
14119
Boone Printing & Graphics, Inc.
183.48
Business Cards
131979
14869
Michael Brannagan
3,900.00
GIS Support - Citizenserve update - iWorQs - Nov 2024
131980
11392
Brenntag Pacific Inc.
6,014.80
Supply of Sodium Bisulfite Nov 2024
131981
10028
Brisco Mill & Lumber Yard
156.98
Rec Supplies
131982
14779
Sally Budd-Unks
201.60
Instructor: Dance FIT 10/1-10/31/24 #11576
131983
10074
Burdine Printing
258.74
Water Supplies
131984
14038
Bureau Veritas North America, Inc.
4,095.00
Professional Building Division Support Services - Oct
131985
14476
Burt Industrial Supply, Inc
58.73 Maintenance Supplies
131986
10389
CALEA
7,590.00
Annual Continuation Fee FY25 & Communications Annual Continuatio Fee FY25
131987
10626
California Highway Adoption Co
1,050.00
Highway 101 On/Off Ramp Mitigation Dec 2024
131988
14855
California's Best Janitorial
21,552.72
Event Rental Cleaning & Janitorial Services Nov 2024
131989
14349
Callander Associates Landscape Architecture, Inc
23,591.40
Ventana Sports Courts - Oct 24
131990
10085
Cannon Corp
39,463.88
Clarifier Rehabilitation - Bid Support - Oct 2024 & CM Inspection - 2022 Paving Project - Oct 2024
131991
10799
Lindsay Carter Coates
412.00
Instructor: Yoga; 10/2-11/27/24 #11562
131992
13531
Central Coast Party Factory LLC
2,000.00
Bounce Houses for Holiday Harmony 12/6/24
131993
13951
Central Coast Portables
541.80
Year Round Portable Toilets - 10/18/24-11/08/24
131994
14889
Central Coast Security
220.00
Security Services
131995
14415
CLAD Consulting, Inc.
10,641.25
On -Call Engineering Services - Nov 2024 & MS4 Permit Compliance Support - Nov 24 & Public Safety Facility - PM, Inspection - Nov24 & Security Cameras Project Management Nov 2024
131996
14834
Confluence Engineering Solutions, Inc
8,491.25
Water Resource Support Services - Oct 2024
131997
14445
Consor North America, Inc.
784.75
Traffic Signal Design Bello & Price Canyon - Sept/Oct
131998
14146
Pamela Ann Coslick
80.00 Instructor: Tae Kwon Do; 11/6-11/27/2024 #11570
131999
14890
Cowboy Cookie & Ice Cream
252.00
Cookies for Neighborhood Event 9/27/24
132000
13386
Cuesta Polygraph & Investigations, LLC.
1,100.00
Psych Evals
132001
14313
Culligan/Santa Maria
646.19
Car Wash Filtration & Service 11/11/24 & Soft Water Tank & Drinking Water Nov 2024
132002
12628
Dell Marketing LP
5,777.21
Computer Equipment
132003
12307
Department Of Justice
47.00 Livescan Service
132004
12790
Diversified Project Services International
1,880.00
Digester #1 Demolition - Nov 2024
132005
13697
Dudek
1,266.25
GP/LCP Update - 9/28-10/25/2024
132006
11289
eGenoa, LLC
1,562.74
Vehicle Decals
132007
14325
Engeo Incorporated
1,462.33
Cliff/Ocean Storm Drain - Design - Oct 2024
132008
13586
Famcon Pipe & Supply Inc.
853.38
Distribution Maintenance - Nov 24
132009
12123
Farm Supply
118.24
Maintenance Supplies
132010
10797
Geosolutions, Inc.
2,000.56
Compaction & Concrete Test - 780 Bello & Building Pad - 780 Bello 132011
12554
Gov Connection, Inc.
10,879.98
Computer Equipment & E-Citation Printers and Accessories 132012
10398
Liliana Graham
208.00
Instructor: Ballroom/Latin Dance Class 11/4-11/25/24
132013
13588
Kenneth John Guge III
260.00
Instructor: Judo; 11/11-11/27/24 #11549
132014
11977
Dan Hall
190.40
Instructor: Yoga; 11/4-11/27/24 #11588
132015
14246
Hunter Smith Architecture
4,492.25
Architectural Services - City Council Chambers - Nov 2024 132016
11739
J.B. Dewar Incorporated
1,173.95
Bulk Oil for MVR Shop
132017
14959
JD Humann Landscaping Inc.
3,250.00
James Way Tree Establishment - Nov 2024
132018
11833
Keylock Security Specialists
1,348.94
Facilities Maintenance
132019
10175
Life -Assist, Inc.
423.67
Medical Supplies
132020
10656
LN Curtis & Sons
4,713.70
Equipment Maintenance
Council Agenda 1-21-2025 9.13-6
Attachment 2
132021
14785
Matrix Consulting Group, Ltd.
14,552.00
DPW Operational Review & Assessment Oct - Nov 2024
132022
14674
McGrath Rentcorp
4,269.53
3 Temporary Trailers 330 Main St. - Lease 11/30/24
132023
13645
MDN Engineering, LLP
14,790.00
Construction Observation - Shaffer Lane PIPS - Jan 2024 & Digester #1 Demolition - Construction Observation - Oct
132024
14042
Merjan Enterprises, Inc.
104,335.53
Access Control & Security Cameras - Annex & Security Door System - City Hall
132025
14739
Mike's Coffee and Tea Co.
54.00 Coffee
132026
10097
Miners Hardware
450.35
Maintenance Supplies
132027
14405
Mission Linen Supply
2,003.47
Uniforms - Nov 2024 & Floor Mats - Nov 2024
132028
12199
Noble Saw, Inc
426.69
Maintenance Supplies
132029
10728
Oilfield Environmental & Compliance, Inc.
3,299.50
Lab Analysis Oct 2024
132030
12315
Pacific Gas & Electric Company
8,675.31
Electricity 11/4/24 - 12/4/24
132031
13066
Holly Padove
127.68
Instructor: Qi Gong; 11/6-11/27/24 #11640
132032
14963
Paso Robles GMC Truck, Inc
72,624.55
2025 GMC Sierra K2500 HD
132033
11202
Pavement Engineering, Inc.
3,281.25
Wadsworth, Price and City Hall parking lot - Oct 24
132034
14550
Phillco
59.24 Soft Water - Station 63 Dec 2024
132035
14852
Peter Picchi
700.00
Decorations - Holiday Harmony 12/6/2024
132036
10633
Pismo Beach Athletic Club Inc
135.00
CalFire PBAC Dues - Nov 2024
132037
12335
Procare Janitorial Supply Inc
655.47
Janitorial Supplies
132038
14908
Public Sector Personnel Consultants, Inc.
8,000.00
Classification & Compensation Study - Nov 2024
132039
10452
Richard Rolson
700.00
Stage Rental for Holiday Harmony
132040
14738
SCA OF CA, LLC
27,325.24
Street Sweeping Services Oct & Nov 2024
132041
13913
Silvas Oil Co., Inc
6,322.62
Diesel & Unleaded Fuel Deliveries 11/20/2024
132042
10532
SLO County Sheriff -Coroner
1,682.00
Crime Lab Services 6/19/24-8/6/24
132043
12570
SLO Roasted Coffee
39.00 Coffee
132044
10025
State Water Resources Control Board
7,898.00
MS4 Annual Permit Fee 7/1/24-6/30/25
132045
12171
State Water Resources Control Board
41,906.70
CWSRF C-06-4793-130 C#08822-550-0 Principal Pismo
132046
12171
State Water Resources Control Board
563.00
Bello Bridge Annual Permit Fee FY24/25
132047
14242
Surfing for Hope Foundation
60,000.00
WSL SLO CAL Open at Pismo Beach Event Sponsorship
132048
12630
SWCA Environmental Consultants
10,437.00
Cultural & Tribal Monitoring - Oct 2024 & 780 Bello Cultural Monitoring - Nov 2024
132049
12629
Tetra Tech Inc
5,036.25
Map Checking Services Oct 2024
132050
12321
The Gas Company
1,396.72
Gas Service 10/17/24 - 11/19/24
132051
13442
Thorn Run Partners
5,000.00
Federal Lobbying Services Dec 2024
132052
12860
Townsend Public Affairs
4,510.00
State Lobbying Services Dec 2024
132053
11165
Tri County Office Furniture
27,875.94
Parking Annex Furniture - Nov 2024 & Engineering - Furniture 132054
10135
U.S. Travel Association
2,700.00
2025 Membership Dues
132055
13392
Urban Planning Concepts
13,860.00
In-house Planning Services Oct & Nov 2024
132056
10507
V & V Manufacturing
241.15
Flat Badge
132057
14115
Vanir Construction Mgmt, Inc.
41,193.00
Owner's Rep & CM- Design -Build Safety Facility - Oct
132058
13013
John H Von Biela
350.00
Santa - Holiday Harmony 12/6/24
132059
12132
White Flag Pest Control Inc
130.00
Pest Control - Shell Beach Fire Dept 12/04/2024
132060
13377
Willdan Financial Services
4,350.00
Development Impact Fee Study and Fees - Oct 2024
132061
1 10348
lWilson Excavating & Grading
1,000.00
Release Bond - Encroachment Permit
Total: $ 719,633.51
Council Agenda 1-21-2025 9.13-7
Attachment 2
City of Pismo Beach
Final Disbursement List Check Date 12/20/2024
US BANK
ACH/ Vendor Check
Check# Number Payee Amount Description
ACH
10002
Internal Revenue Service
$ 100,533.85
Federal Income Tax PD 12/20/24
ACH
11208
SEIU Local 620 AFL/CIO
903.01
SEIU Dues PD 12/20/24
ACH
11305
Public Employees Retirement System
77,663.05
PERS Retirement from Springbrook EE & ER
ACH
12017
Vantagepoint Transfer Agents
9,172.00
Retiree Health Longevity Premiums - PD 01/01/25
ACH
12260
dba: Mission Square ICMA Retirement Trust - 457
25,907.45
ICMA 457 Deferred Comp EE & ER PD 12/20/24
ACH
1 12305
Franchise Tax Board
22,295.67
SDI & State Income Tax PD 12/20/24
ACH
12360
CalPERS 457 Plan
291.67
PERS 457 Deferred Camp ER PD 12/20/24
ACH
12708
dba: Mission Square ICMA Retirement Trust -Roth
IRA
525.00
ICMA Roth IRA PD 12/20/24
ACH
12944
Leaf
333.89
900 Bello & 585 Dolliver Copier Lease Nov 2024
132062
14414
California State Disbursement Unit
415.38
Tax Withholding Order- PD 12/20/24
132063
14771
California State Disbursement Unit
16.15 Tax Withholding Order- PD 12/20/24
132064
14876
California State Disbursement Unit
784.61
Tax Withholding Order- PD 12/20/24
132065
13846
Franchise Tax Board -Tax Withholding-2
50.00 Tax Withholding Order- PD 12/20/24
132066
14043
Health & Human Resource Center, Inc.
159.80
Employee Assistance Program January 2025
132067
14878
Nevada State Treasurer
2.00 Tax Withholding Order Fee -PD 12/20/24
132068
12022
Pismo Beach Police Officer's Association
1,321.00
POA Dues PD 12/20/24
132069
14877
SCaDU
230.76
Tax Withholding Order -PD 12/20/24
132071
10434
Abalone Coast Analytical Inc
221.00
Water Analysis
132072
12295
Addiction Medicine Consultants, Inc.
2,368.00
FMCSA Clearinghouse CY 2025 & DOT Testing CY 2025
132073
14760
AHA Shoes, Inc
258.59
Safety BootsFY25
132074
12275
Airgas West Inc
45.18 Oxygen - MVR - Nov 2024
132075
14540
Greg Alex
100.00
Planning Commission Meeting Stipends Q4 2024
132076
11800
Allan Hancock College
3,522.00
PD Training - Four Classes -7-10Participants
132077
11382
Applied Technology Group, Inc.
35,359.84
Radio Equipment and Installation, Annual Radio System Preventative Maintenance
132078
14865
AT&T Mobility 287341782965
129.72
SCADA Hotspot - 10/1/24-10/31/24
132079
11589
Austin's Wet Pets and Pond Maintenance, Inc
140.00
Chapman Pond Maintenance Nov 2024
132080
13569
Jedidiah J. Bickel
25.00 CVB Board Meeting Stipends Q4 2024
132081
14889
Central Coast Security
330.00
Security Services
132082
12349
Charter Communications
4,048.59
WAN 11/1/24-11/30/24
132083
14217
Deltina Coffee Roasters
62.50 Coffee
132084
12307
Department Of Justice
177.00
Live Scan Services June 2024
132085
13675
Michael Drew Devine
25.00 PRBC Meeting Stipends Q4 2024
132086
11828
Gordon Jackson
253.00
MWE: Go West Summit 1/6-1/9/25
132087
13679
KC Partners Corp
2,000.00
Annual Air Pollution Control District Inspection 2024
132088
11833
Keylock Security Specialists
6.53 Keys - IT
132089
10656
UN Curtis & Sons
122.84
Vehicle Equipment
132090
14386
Louie's Crane Service, LLC
1,000.00
Water Equipment
132091
13768
Mark Schwind Electric, Inc.
1,968.00
EV Charger Repair at City Hall
132092
10544
Jessica Marsalek
75.71 Mileage: Fall Forum 11/15/2024
132093
14739
Mike's Coffee and Tea Co.
27.00 Coffee
132094
10097
Miners Hardware
815.52
Maintenance Supplies
132095
14405
Mission Linen Supply
413.76
Uniforms/Floor Mats/Towels - Nov 2024
132096
11172
Mullahey Ford
3,810.29
Vehicle Maintenance
132097
14102
Peak WiFi, LLC
650.00
Internet Service - Lift Station Nov 2024
132098
10633
Pismo Beach Athletic Club Inc
135.00
CalFire PBAC Dues - Dec 2024
132099
14979
Precast Unlimited, Inc.
4,236.00
Public Art - Benches
132100
14079
Clare Malone Prichard
150.00
Planning Commission Meeting Stipends Q4 2024
132101
12335
Procare Janitorial Supply Inc
1,618.08
Janitorial Supplies
132102
10904
Ron Rodriguez
25.00 PRBC Meeting Stipends Q4 2024
132103
14048
Sheila Sanford
500.00
Cookies for Holiday Harmony Cookie Decorating
132104
14557
Securitas Technology Corporation
652.59
Security Maintenance City Hall - Nov 2024 & Security & Fire Monitoring - 550 Frady Dec 2024
132105
11168
Sherwin-Williams
144.51
Paint For City Hall
132106
13913
Silvas Oil Co., Inc
5,847.69
Fuel Delivery for 12/04/2024
132107
12570
SLO Roasted Coffee
58.50 Coffee
132108
11323
Streator Pipe & Supply
78.66 Maintenance Supplies
132109
14795
James Summer
150.00
Planning Commission Meeting Stipends Q4 2024
132110
11229
Thoma Electric Inc
8,974.00
Corp Yard - Supplies
132111
14821
Traffic Management Products Inc
486.06
Street Signs
132112
14095
Reed Van Rozeboom
100.00
Planning Commission Meeting Stipends Q4 2024
132113
14980
Agnes Wallace
500.001
Deposit Refund
132114
12132
White Flag Pest Control Inc
271.001
Pest Control
Total: $ 322,487.45
Council Agenda 1-21-2025 9.13-8
Attachment 2
City of Pismo Beach
Final Disbursement List Check Date 12/27/2024
US BANK
ACH/ Vendor Check
Check# Number Payee Amount Description
ACH
10002
Internal Revenue Service
$ 102,015.79
Federal Income Tax PD 01/03/25
ACH
10371
Visit SLO County
161,631.88
TMD Payments Oct 2024
ACH
11208
SEIU Local 620 AFL/CIO
836.13
SEIU Dues PD 01/03/25
ACH
11305
Public Employees Retirement System
76,790.45
PERS Retirement from Springbrook EE & ER PD 01/03/2025
ACH
12211
CA. Public Emp Retirement Sys
123,987.32
Medical Insurance - Jan 2025
ACH
12260
dba: Mission Square ICMA Retirement Trust -
457
27,251.28
ICMA 457 Deferred Comp EE & ER PD 01/03/25
ACH
12305
Franchise Tax Board
19,934.75
SDI & State Income Tax PD 01/03/25
ACH
12360
CAPERS 457 Plan
291.67
PERS 457 Deferred Comp ER PD 01/03/25
ACH
12708
dba: Mission Square ICMA Retirement Trust-
Roth IRA
575.00
ICMA Roth IRA PD 01/03/25
ACH
12944
Leaf
1,322.25
Monthly PD Copier Lease Dec 2024 & Monthly Parking Copier Lease - Dec 2024
ACH
14257
Igoe Administrative Services
1,557.19
Medical and/or Dependent Care FS Monthly Participation IGOE FSA & DDS Reimbursement - Dec 2024
Check Total:
ACH
14547
Quadient, Inc. - Postage
2,500.00
Postage Nov 2024
132115
14078
5-Cities Community Service Foundation
46.00 Five Cities Men's Club Dues - Oct 2024
132116
10446
Achievement House, Inc.
12,504.55
Shell Beach Litter Removal & Clean-up Services Nov & Sidewalk Cleaning Services & Pressure Washing - Nov & Pismo Beach Litter Removal & Clean-up Services - Nov
132117
10695
AFLAC
2,712.79
Supplemental Disability Insurance - Dec 2024
132118
11882
Alexander's Contract Services Inc
4,115.59
Water Meter Reading Services - Dec 2024
132119
12433
Alpha Electrical Service Inc
1,032.00
Emergency Call for Pismo Heights Booster Station - 12/14/2024 132120
12087
Apodaca Paving
4,000.001
Release Encroachment Permit Bond
132121
11382
Applied Technology Group, Inc.
74.11 Connection Cable
132122
12624
AT&T 9391012187
4,555.83
Phone Bill 11/10/2024 - 12/09/2024
132123
12623
AT&T 9391012188
4,477.97
Phone Bill 11/10/2024 - 12/09/2024
132124
13278
AT&T 9391059148
1,870.36
Phone Bill 11/10/24 - 12/9/24
132125
12625
AT&T 9391083592
1,545.49
Phone Bill 11/1/24 - 11/30/24
132126
14865
AT&T Mobility 287341782965
129.72
SCADA Hotspot - 11/01/2024 - 11/30/2024
132127
13382
Axon Enterprises Inc.
2,802.58
Taser Equipment
132128
14984
David Ayres
500.00
Release Encroachment Permit Bond
132129
11392
Brenntag Pacific Inc.
994.54
Supply of Sodium Bisulfite - Dec 2024
132130
14038
Bureau Veritas North America, Inc.
2,047.50
Professional Building Division Support Services - Nov
132131
14476
Burt Industrial Supply, Inc
153.78
Maintenance Supplies
132132
14414
California State Disbursement Unit
415.38
Tax Withholding Order - PD 01/03/25
132133
14771
California State Disbursement Unit
16.15 Tax Withholding Order - PD 01/03/25
132134
14876
California State Disbursement Unit
784.61
Tax Withholding Order - PD 01/03/25
132135
10085
Cannon Corp
1,266.86
Additional Services - Ocean Blvd CM - Nov 2024 & Clarifier Rehabilitation - Bid Support - Nov 2024
132136
12506
CCGC, Inc Attn: AR
6,470.00
Special Inspection and Materials Testing - Nov 2024
132137
13951
Central Coast Portables
177.10
Portable Restrooms-Boosinger Park 10/25/2024
132138
11451
Channel Islands Technology Integrators' Group
33,715.59
IT Professional Services: Remote Support & PD Teams Migration - Oct/Nov 2024 & Microsoft 0365- Phone- MDM & Storage Licenses - Nov & Monthly Backup Subscriptions/ IT Services - Nov 2024 & IT Professional Services: Email Server Search
132139
11757
City of Pismo Beach
404.66
Final Bill for City Account #005005-104
132140
11552
Agritec International Ltd CleanTech
Environmental
7.45 Used Motor Oil Disposal
132141
14985
Paige Coffey
500.00
Release Encroachment Permit Bond
132142
14313
Culligan/Santa Maria
307.40
Drinking Water - Nov 2024
132143
12224
Delta Dental Of California
6,575.94
Dental Premiums - Jan 2025
132144
14217
Deltina Coffee Roasters
62.50 Coffee
132145
12320
Dept Of Forestry and Fire Protection
618,925.43
Schedule A 1st Qtr Actual FY24/25 07/01/24-09/30/24
132146
13697
Dudek
1,680.00
GP/LCP update for10/26-11/22/24
132147
11289
eGenoa, LLC
2,963.11
Graphics for New PD K9 Vehicle & MVR Supplies
132148
10746
Electricraft Inc.
399.73
Service Call Police Annex
132149
11868
FGLEnvironmental
225.00
Water Analysis
132150
13846
Franchise Tax Board -Tax Withholding-2
50.00 Tax Withholding Order PD 01/03/25
132151
14944
Harris System USA Inc
400.001
Harris Wintegrate Payroll Data Extracts - Dec 2024
132152
10376
Hinderliter, de Llamas & Associates
1,513.10
Audit Services - Sales Tax - Oct -Dec 2024
132153
12018
Erica Inderlied
577.16
M&IE & Mileage: New Law & Election Seminar 12/11/2024
Council Agenda 1-21-2025 9.13-9
Attachment 2
132154
13276
InfoSend, Inc.
1,242.51
Processing -Printing -Mailing Utility Bills Nov 2024
132155
14982
IPDC Construction
6,377.00
Conceptual Review Refund
132156
12096
Lee Wilson Electric Co Inc
1,045.99
Signal Light Maintenance -July & October & November 2024 132157
13361
Marborg Industries Santa Barbara
311.81
Portable Restrooms
132158
10097
Miners Hardware
293.63
Maintenance Supplies
132159
14405
Mission Linen Supply
902.62
Uniforms/Rugs/Towels - Nov 2024
132160
14353
Motorola Solutions, Inc.
16,000.00
On -site Deployment/Configuration & Project Management
132161
14983
Naomi Neilson
2,500.00
Release Encroachment Permit Bond
132162
14878
Nevada State Treasurer
2.00 Tax Withholding Order Fee - PD 01/03/25
132163
14343
ODP Business Solutions, LLC
238.91
Office Supplies
132164
10728
Oilfield Environmental & Compliance, Inc.
2,868.50
Lab Analysis November 2024
132165
14813
Olympus and Associates, Inc
5,700.00
Toucan Terrace Pipeline Recoating - Final Pay Request
132166
10697
John Parker
275.00
Graphic Design - Father/Daughter Dance
132167
14102
Peak WiFi, LLC
1,680.15
Internet Service - PD Camera Network & PD LPR & Lift Station - Dec 2024
132168
12022
Pismo Beach Police Officer's Association
1,378.96
POA Dues PD 01/03/25
132169
12335
Procare Janitorial Supply Inc
2,449.09
Janitorial Supplies
132170
11266
San Luis Auto Parts Inc
35.97 Vehicle Maintenance
132171
13994
SBRK Finance Holdings, Inc.
910.00
CivicPay IVR Transaction Fees Nov 2024 & TCP Import & Testing for E- Timesheets - Nov 2024
132172
14877
SCaDU
230.76
Tax Withholding Order - PD 01/03/25
132173
14843
Schaaf & Wheeler, Consulting Civil Engineers
8,445.00
Drainage Study - Nov 2024
132174
14754
Schwind Electric
1,392.00
Electrical Labor & Materials
132175
14557
Securitas Technology Corporation
3,007.19
Monthly Security & Fire Monitoring - Dec 2024 & Security & Fire Monitoring - January 2025 & Security & Fire Monitoring - Q1 25 132176
11168
Sherwin-Williams
28.63 Facilities Maintenance
132177
14981
Diane Francine Simmons
1,600.00
Cash for Grass
132178
10532
SLO County Sheriff -Coroner
2,726.00
Crime Lab Services 8/10/24-10/3/24 & Drug Screen - 8/18/24 & 8/23/24
132179
11722
SP Maintenance Services Inc
5,157.67
Parking Lot and Street Sweeping Services Nov 2024
132180
10025
State Water Resources Control Board
4,826.00
Collection System Annual Permit Fee 7/1/24-6/30/25 & NPDES Drinking Water Annual Permit Fees 7/1/24-6/30/
132181
14933
Stommel Inc.
40.41 Vehicle Supplies
132182
13097
The Standard
1,543.74
Life & Additional Life Insurance Premiums -Jan 2025
132183
12461
TJA Advertising
152,022.98
CVB Advertising and Promotion - Nov 2024 & LBID Advertising and Promotion Nov 2024
132184
14821
Traffic Management Products Inc
497.32
Street Signs
132185
11165
Tri County Office Furniture
11,742.48
Office Furniture, Desks, Cabinets
132186
12982
Ultrex Business Products
1,200.03
Monthly Copier Usage - Nov 2024
132187
12621
UPS
23.47 Shipping Cost for Goleta Lab
132188
14115
Vanir Construction Mgmt, Inc.
36,295.08
Owner's Rep & CM- Design -Build Safety Facility - Nov 2024 132189
14034
Vital Records Holdings, LLC
198.74
Document Storage Dec 2024
132190
13073
VSP- Vision Service Plan (CA)
1,536.51
VSP Vision Coverage - Jan 2025
132191
12527
Water Systems Consulting Inc
64,657.52
NCMA Management Agreement Update - July - Nov 2024 & NCMA Staff Extension - Oct/Nov 2024 & 2024 Annual Water Use Report -July - Nov 2024 & Central Coast Blue PM Services - Nov 2024 & Central Coast Blue Feasibility Analysis - Nov 2024
132192
12132
White Flag Pest Control Inc
1,027.00
Pest Control
132232
14402
Carol A. Burner
933.33
900 Bello Lease -January 2025
132233
10474
Joseph Wolosz
7,000.00
Wolosz Parking Lot Lease -January 2025
132234
14401
Barbara L. Maraist
933.34
900 Bello Lease -January 2025
132235
14403
Betty J. Pratt
933.33
900 Bello Lease -January 2025
Total: $ 1,591,904.36
Council Agenda 1-21-2025 9.13-10
Attachment 2
City of Pismo Beach
Final Disbursement List Check Date 01/03/2025
US BANK
ACH/ Vendor Check
Check# Number Payee Amount Description
132193
14874
Advance Stores Company, Incorporated
$ 818.66
Vehicle Maintenance
132194
14363
AT&T Mobility 287314925891
127.82
iPad Tablet Service - Nov 2024
132195
14946
BKM Office Environments
4,248.81
Office Furniture
132196
14448
David Blanchard
676.52
Lodging/Mileage/M&IE: PW Director Candidate Background
132197
14119
Boone Printing & Graphics, Inc.
61.16 Business Cards
132198
12841
Robert Brenman
125.00
Band Member - Senior Dance 12/10/24
132199
13852
California Diesel & RV LLC
782.60
Vehicle Maintenance
132200
12506
CCGC, Inc Attn: AR
21,247.50
Public Safety Facility Inspection - Oct 2024
132201
13951
Central Coast Portables
1,083.60
Portable Restrooms - Tennis Courts 11/09/24-12/06/24 & Portable Restrooms FY24/25 - Tennis Courts 12/07/24-01/03/25
132202
14986
City Of San Luis Obispo
69.22 SLO County Police Chief's Meeting
132203
14415
CLAD Consulting, Inc.
23,037.50
CM, Inspection and Admin Services for Parking Annex
132204
11227
Cole Chrysler Dodge
620.57
Vehicle Equipment
132205
10667
Complete Paperless Solutions, LLC
4,420.83
(4) Additional Licenses
132206
14202
Crisp Imaging
761.06
Large Format Printer Ink
132207
14344
Mary Elizabeth Douglas
125.00
Band Member - Senior Dance 12/10/2024
132208
12541
Engel & Gray Inc
8,595.00
Composting Biosolids Nov 2024
132209
12123
Farm Supply
88.32 Maintenance Supplies
132210
13276
InfoSend, Inc.
691.15
Holiday Lights Contest Print and Insert Fee Nov 2024
132211
14660
Interwest Consulting Group
19,720.00
Plan Review & Inspection of a Public Safety Facility - Nov 2024 132212
13385
IPS Group, Inc.
544.27
Parking Decals
132213
10760
Johnboy's Towing
718.75
Towing Service
132214
14125
Natalie Lancor
300.00
Clam Painting: December 2024 Pismo Coast Village
132215
13361
Marborg Industries Santa Barbara
3,721.08
Temporary Fencing - Clam Festival & Restroom Rentals - Clam Festival 132216
10097
Miners Hardware
338.15
Maintenance Supplies
132217
14353
Motorola Solutions, Inc.
18,156.50
Watchguard - Police Body Cameras Video Manager & In -Car Video Equipment, Software, and Installation - Delivery
132218
11172
Mullahey Ford
1,186.41
Vehicle Equipment & Maintenance
132219
13138
National Business Furniture LLC
4,905.37
MVR Office Furniture
132220
14343
ODP Business Solutions, LLC
286.82
Office Supplies
132221
13279
Pacific Central Coast Health Centers
672.62
Pre -employment Health Screening
132222
14613
Dennis Richardson
220.00
Instructor: Tennis with Dennis - 10/5-10/19/24 #11567
132223
11266
San Luis Auto Parts Inc
403.38
Vehicle Maintenance
132224
11796
San Luis Powerhouse, Inc.
10,571.71
Cooling System Overhaul
132225
10576
SLOCO Data, Inc
2,151.00
2025 Advisory Body Recruitment Flyer - Printing and Mailing 132226
10025
State Water Resources Control Board
15,824.00
Annual Permit Fee - WWTP FY25
132227
12860
Townsend Public Affairs
4,500.00
State Lobbying Services January 2025
132228
14821
Traffic Management Products Inc
638.04
Signs For Ocean View
132229
12982
Ultrex Business Products
192.61
Monthly Copier Usage Dec 2024
132230
14789
Lori Waters
72.00 Instructor: Astrology Study Group- 12/12/2024 #11573 Total:
$ 152,703.03
Council Agenda 1-21-2025 9.13-11
G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
.o�s'yo Bt Agenda Item #9.0
Meeting Date: January 21, 2025
TITLE:
Revisions to the City Investment Policy
RECOMMENDATION:
Approve the revised City of Pismo Beach Investment Policy.
DISCUSSION:
The purpose of this agenda item is to present revisions to the City of Pismo Beach Investment Policy for City Council review and approval. Pursuant to California Government Code Section 53646(a)(2), local agency investment policies must be reviewed and considered at a public meeting. The City's Investment Policy was last approved on September 3, 2024.
The Administrative Services Director/City Treasurer, in collaboration with the City's Investment Advisor (PFM Asset Management), recommends several updates to align the Investment Policy with recent changes in the California Government Code and improve investment options. Key changes include:
Policy Updates Based on California Government Code Amendments • Governmental Accounting Standards Board (GASB) Statement No. 98 (2021):
o Updated terminology from "Comprehensive Annual Financial Report" to "Annual Comprehensive Financial Report" (ACFR).
• Senate Bill (SB) 1489 — Local Government Omnibus Act of 2022:
o Forward Settlement: Added language to Policy Section 14.0 on calculating the term or remaining maturity of investments and restricting forward settlement dates to 45 days.
o Quarterly Reporting: Updated Policy Section 17.0 to reflect the extended timeline (45 days) for submitting quarterly investment reports.
• SB 882 — Local Government Omnibus Act of 2023:
o Clarified that federally issued mortgage -backed securities are exempt from Code restrictions on privately issued securities. Policy Section 8.0 now explicitly includes Asset- and Mortgage -Backed Securities as authorized investments.
Enhanced Investment Options
The Treasurer recommends expanding permissible investments under Policy Section
8.0 to include:
• Supranational obligations, banker's acceptances, non -pooled commercial paper, and repurchase agreements.
• Removal of the Policy's 30% limit on State and out-of-state issuances to align Council Agenda 1-21-2025 9.C-1
with the California Government Code.
These revisions aim to enhance the City's investment flexibility, ensure compliance with regulatory changes, and maintain prudent fiscal management. The recommend changes comply with the California Government Code and best practices.
Conclusion and Recommendation
Staff recommends that Council approve the revised City of Pismo Beach Investment Policy (Attachment 1).
FISCAL IMPACT:
As the proposed Investment Policy modifies the permitted investments, approving the Investment Policy could improve the City's interest earnings, assuming stable market conditions, for a favorable financial impact. The Policy promotes the City's objectives to safeguard the principal, remain liquid, and strive for maximum investment returns. The amount invested in various investment securities is dependent on the cash flow needs of the City and the market dictates the earnings on the majority of the City's portfolio.
ATTACHMENTS:
1. 2025 Revised City of Pismo Beach Investment Policy
Submitted by: Nadia Feeser, Administrative Services Director/ City Treasurer City Manager Approval:
C
Council Agenda 1-21-2025 9.C-2
�Ty OF
Attachment 1
A�s'yosEP�� City of Pismo Beach Investment Policy
1.0 Policy
The City of Pismo Beach ("City") shall invest public funds in such a manner as to comply with state and local laws; ensure prudent money management; provide for daily cash flow requirements; and meet the objectives of the Policy, in priority order of Safety, Liquidity, and Return on investment.
California Government Code Section 53646 (a)(2) states that the City Treasurer may annually submit an investment policy to the City Council for consideration at a public meeting. This investment policy conforms to all pertinent existing laws of the State of California, including California Government Code Sections 53600 et seq.
2.0 Scope
This investment policy applies to all financial assets and investment activities of the City.
Investments for the City will be made on all funds identified in the Annual Comprehensive Financial Report (ACFR) on a pooled basis, including the General Fund, Special Revenue Funds, Capital Project Funds, Debt Service Funds, Enterprise Funds, Internal Service Funds, Fiduciary Funds, and any funds subsequently created.
This investment policy does not apply to Bond Proceeds, Deferred Compensation Funds, Retirement or Retiree Health Care savings/trusts/plans. California Government Code Section 5922(d) authorizes proceeds of bonds to be invested in accordance with related offering documentation. These Code Sections recognize the unique needs and objectives of such proceeds. Likewise, Deferred Compensation Plans are covered under California Government Code.
3.0 Prudence
The City Treasurer is authorized to make investment decisions on behalf of the City investing public funds subject to the prudent investment standard. The Prudent Investor Standard (California Government Code Section 53600.3) states, that "when investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated need of the [City], that a prudent person in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the [City]". The standard of prudence to be used by investment officials shall be applied in the context of managing an overall portfolio.
r
L
2025 City of Pismo Beach Investment Policy
January 21, 2025
Council Agerfda 1-21-2025 9.C-3
�Ty OF
Attachment 1
A�s'yosEP�� City of Pismo Beach Investment Policy
4.0 Objectives
The primary objectives, in priority order, of the City's investment activities (per CA Govt Code Section 53600.5) shall be:
4.1. Safety: Safety of principal is the foremost objective of the investment program.
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns and financial institutions.
4.2. Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
4.3. Return on Investments: The City's investment portfolio shall have the objective of attaining a comparative performance measurement or an acceptable rate of return throughout budgetary and economic cycles. These measurements should be commensurate with the City's investment risk constraints identified in the Investment Policy and the cash flow characteristics of the portfolio.
5.0 Delegation of Authority
California Government Code Section 53601 states that the legislative body of a local agency (i.e., the City Council) is authorized to invest surplus moneys as specified in that code section. In accordance with California Government Code Section 53607, this authority may be delegated to the City Treasurer for a one- year period by the City Council. Subject to review, the City Council may renew the delegation of authority under this code section each year.
2 The Pismo Beach City Council delegates its authority to invest or reinvest City funds to the City Treasurer, who is also the Administrative Services Director. The City Treasurer will be responsible for all investment transactions and shall establish a system of controls to regulate the activities of City officials involved in any aspect of the investment program.
In the case of the City Treasurer's absence, the City Council delegates investment authority in the following order to (1) Finance Manager and (2) City Manager.
Duties and Responsibilities
5.1. City Treasurer (Administrative Services Director): Charged with responsibility for all public funds and securities belonging to or under the control of the City, and for the deposit and investment of those funds in accordance with the principles of sound treasury management and in accordance with the applicable laws, ordinances, and policies adopted by the City.
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5.2. Administrative Services Department Staff: Charged with recording investment activity in the accounting records and with verifying the Treasurer's records with broker confirmations, bank statements, and safekeeping records.
5.3. Finance Manager: Charged with responsibility (in the absence of the Treasurer) for all public funds and securities belonging to or under the control of the City and for their deposit. Duties related to investment activities shall be performed by staff other than those responsible for the accounting of those investments.
5.4. City Council: May delegate to the City Treasurer for a one-year period the authority to invest the City's funds. Subject to review, the City Council may renew the delegation of this authority each year. The City Council may also annually consider and approve a written Statement of Investment Policy at a public meeting. Any change to the Investment Policy at any time shall also be considered by the City Council at a public meeting.
6.0 Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers shall disclose any material financial interest in financial institutions that conduct business with this City, and they shall further disclose any large personal financial / investment positions that could be related to the performance of the City's portfolio.
7.0 Authorized Financial Dealers and Institutions
7.1. The Treasurer will maintain a list of approved financial institutions authorized to provide investment services to the City in the State of California. A competitive bid process, when practical, will be used to place all investment purchases, other than those that are classified as "new issue" securities. On an annual basis, the Treasurer shall recommend a list of at least two broker/dealers who are authorized to provide investment services. The list shall be approved by the City Council. All broker/dealers who wish to be considered for the list must meet the following minimum requirements:
7.1.a Must be a "primary" or regional dealer that qualifies under the Securities and Exchange Commission Rule 150-1 (Uniform Net Capital Rule)
7.1.b Must be experienced in public agency investing and investment products and familiar with the California Government Code as related to investments for local governmental agencies
7.1.c Must have been in business for at least three years
7.1.d Must supply the Treasurer with the following:
• current audited financial statements,
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4 • proof of Financial Industry Regulatory Authority (FINRA) certification,
• trading resolution,
• depository contracts,
• proof of State of California registration,
• completed broker/dealer questionnaire, and
• certification of having read the City's investment policy.
7.1.e The Treasurer shall consider the creditworthiness of institutions.
7.2. If a third -party investment advisor is authorized to conduct investment transactions on the City's behalf, the investment advisor may use their own list of approved broker/dealers and financial institutions. The investment advisor's approved list must be made available to the City upon request.
7.3. No public deposit shall be made except in a qualified public depository as established by the established state laws.
7.4. An annual review of the financial condition and registrations of qualified bidders will be conducted by the Treasurer. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the City invests.
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8.0 Authorized and Suitable Investments
California Government Code Section 53601, 53601.6, 53601.8, 53635, 53635.2, 53638 and 53684 include a number of requirements on how and where public money may be invested. Within the context of the limitations, the following investments are authorized, as further limited herein. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.
The City is empowered by statute to invest in the following types of securities:
City Dollar Limit,
Maximum Percentage of
Maturity
Permitted Investments
Portfolio Limit
Limit
Local Agency Investment Fund (LAIF)
$75 million, 100%
None
Agency Issues (Government Sponsored
100%
5 years
Enterprise, or GSE, instruments)
Negotiable Certificates of Deposits
30% of portfolio; 5% of issuer
5 years
Public Funds Checking or Savings
100%
None
Account
Money market mutual funds
20%
None
The California Asset Management Program
100%
None
(CAMP)
U.S. Treasury Issues
100%
5 years
State of California Issues
30%
5 years
Issues of Entities outside of California
30%
5 years
Issues of Other California entities
30%
5 years
City of Pismo Beach Bonds
100%
5 years
Corporate Bonds and Medium -Term Notes
30% of portfolio; 5% per
5 years
issuer; rating of 'A' or higher
Commercial Paper— Non -Pooled Funds
25% or portfolio; 5% per
270
(under $100,000,000 of investments) and
issuer; Rating of 'A-1/A' or
days or less
Pooled Funds
higher
Commercial Paper — Non -Pooled Funds
40% or portfolio; 5%
270 days
(min $100,000,000 of investments) and
per issuer; Rating of
Pooled Funds
'A-1/A' or higher
Supranational Obligations
30% of portfolio; 5%
5 years
per issuer; rating of
'AA' or higher
Mortgage Pass -Through and Asset -Backed
20% of portfolio; 5%
5 years
Securities
per issuer; rating of
'AA' or higher
Banker's Acceptances
40%
180 days
Repurchase Agreements
20%
1 year
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Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City's Policy and supersedes any and all previous applicable language. If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Officer, until the maturity date to avoid an unnecessary loss.
9.0 Review of Investment Portfolio
The securities held by the City must be in compliance with Section 8.0 Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section 8.0 Authorized and Suitable Investments subsequent to the date of purchase, the Treasurer shall at least quarterly review the portfolio to identify those securities that do not comply. The Treasurer shall establish procedures to report to the City Council, major and critical incidences of noncompliance identified through the review of the portfolio.
10.0 Investment Pools/ Mutual Funds
A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:
10.1. A description of eligible investment securities, and a written statement of investment policy and objectives.
10.2. A description of interest calculations and how it is distributed, and how gains and losses are treated.
10.3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
10.4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
10.5. A schedule for receiving statements and portfolio listings
10.6. A description of how the pool/fund maintain reserves, retained earnings, etc. or is all income after expenses distributed to participants
10.7. A fee schedule that discloses when and how fees are assessed.
10.8. The eligibility of the pool/fund to invest in bond proceeds and a description of its practices.
11.0 Collateralization
Collateralization is required on certificates of deposits and sweep checking accounts. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be (110%) of market value of principal and accrued interest.
The City chooses to limit collateral to the following: certificates of deposits, sweep checking accounts, and agency issues. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked 6 2025 City of Pismo Beach Investment Policy January 21, 2025 Council Age a 1-21-2025 9.C-8
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evidence of ownership (safekeeping receipt) must be supplied to the entity and retained.
The Treasurer, at her discretion, may waive the collateral requirements for certificates of deposits up to $250,000 which are fully insured by the Federal Deposit Insurance Corporation.
12.0 Safekeeping and Custody
To protect against potential fraud and embezzlement, or losses caused by a collapse of an individual securities dealer all security transactions, including collateral for repurchase agreements, entered into by the City will be received and delivered on a delivery versus payment (DVP) basis. Securities will be held by a third -party custodian/safekeeping account designated by the Treasurer and evidenced by safekeeping receipts. Said securities shall be held in a manner that establishes the government entity's right of ownership. The only exception to the foregoing shall be depository accounts and securities purchases made with: LAIF, time certificates of deposit and money market mutual funds held directly with issuing institution, since the purchased securities are not deliverable.
13.0 Diversification
The City recognizes that investment risks can result from issuer defaults, market price changes, or various technical complications leading to temporary illiquidity. To minimize the City's exposure to these types of risk, the portfolio should be diversified among several types of institutions, instruments, and maturities. The Treasurer shall minimize default risk by prudently selecting only instruments and institutions, which at the time of placement have been evaluated for their financial viability and compliance with this policy.
No individual investment transaction shall be undertaken that jeopardizes the total capital position of the overall portfolio. Risk shall also be managed by subscribing to a portfolio management philosophy that helps to control market and interest rate risk by matching investments with cash flow requirements. See section 9.0 Authorized and Suitable Investments, which lists the City's maximum percentage limits and promotes a diverse portfolio.
14.0 Maximum Maturities
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Matching maturities with cash flow dates will reduce the need to sell securities prior to maturity, thus reducing market risk. Unless matched to a specific cash flow and approved by City Council, the City will not directly invest in securities maturing more than 5 years from the date of purchase. The calculation of an investment's remaining maturity/term is to be measured from the settlement date to final maturity. 7 1 2025 City of Pismo Beach Investment Policy January 21, 2025 Council Agerfda 1-21-2025 9.C-9
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15.0 Internal Controls
The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures.
• Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction.
• Timely bank reconciliation is conducted to ensure proper handling of all transactions. • The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by the Administrative Services Department on a monthly and quarterly basis.
16.0 Performance Standards
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs.
The City's basic investment strategy is to buy and hold investments until maturity However, the Treasurer may sell a security due to adverse changes in credit risk or due to unexpected cash flow needs.
The Market Yield benchmark used by the Treasurer is to determine whether market yields are being achieved and shall be the rate of return from the following indices: Local Agency Investment Fund (LAIF) and 6-month and 1-year Treasury Bills.
17.0 Investment Reporting
In accordance with California Government Code Section 53607, the Treasurer shall file a monthly investment report with the City Clerk who will place the report on the agenda of the next regular City Council meeting. The Treasurer shall review and render monthly and quarterly investment portfolio reports to the City Manager and City Council. • The monthly report shall include an accounting of all receipts, disbursements, and fund balances.
• The quarterly reports shall include the book and market value of the cash investment, the classification of the investment, the name of the institution or entity, the rate of interest, and the maturity dates for all securities. • The quarterly report will include a statement of compliance of the portfolio with the investment policy or an explanation as to why the portfolio is not in compliance per Government Code 53646(b)(2).
• The quarterly report will include a statement on availability of funds to meet its obligations within the next six months per Government Code 53646(b)(3).
As a good reporting practice, the Report will be submitted on a quarterly basis and provided to the Council within 45 days following the end of the month. 8 1025 City of Pismo Beach Investment Policy January 21, 2025 Council Agea 1-21-2025 9.C-10
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18.0 Investment Policy Adoption
The City's Investment Policy shall be adopted by resolution annually by the City Council.
The policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.
19.0 Glossary
AGENCIES: Federal agency securities and/or Government -sponsored enterprises.
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official financial annual report of the City. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
ASK PRICE: The price at which securities are offered.
ASSET -BACKED SECURITIES: Securities that are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset -backed securities are structured as trusts in order to perfect a security interest in the underlying assets.
BANKER'S ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BEAR MARKET: A period of generally pessimistic attitudes and declining market prices.
BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio's investments.
BID PRICE: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.
BOND: An interest -bearing security issued by a corporation, quasi -governmental agency or other body, which can be executed through a bank or trust company. A bond is a form of debt with an interest rate, maturity, and face value, and is usually secured by specific assets. Most bonds have a maturity of greater than one year, and generally pay interest semi-annually.
BOND RATING: The classification of a bond's investment quality.
BOOK VALUE: The amount at which a security is carried on the books of the holder or issuer. The book value is often the cost, plus or minus amortization, and may differ significantly from the market value.
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BROKER: A broker brings buyers and sellers together for a commission.
BULL MARKET: A period of generally optimistic attitudes and increasing market prices.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate.
Large -denomination CD's are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COMMERCIAL PAPER: Short-term obligations with maturities ranging from 2 to 270 days issued by banks, corporations, and other borrowers to investors with temporarily idle cash. Such instruments are unsecured and usually discounted, although some are interest -bearing.
COMMISSION: The broker's or agent's fee for purchasing or selling securities for a client.
COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
CREDIT RISK - defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing in investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City's capital base and cash flow.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DEFAULT RISK: This is the risk that a company or individual will be unable to make the required payments on their obligation. Standard measurement tools to gauge default risk include credit ratings by Nationally Recognized Statistical Rating Organizations (NRSROs).
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
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DISCOUNT SECURITIES: Non -interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills).
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed- income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations.
FEDERAL OPEN MARKET COMMITTEE (FOMQ Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States which consists of a seven member Board of Governors, 12 regional banks and approximately 5,700 commercial banks that are members.
FISCAL YEAR: An accounting or tax period comprising any twelve month period. The City's fiscal year begins on July 1.
FULL FAITH AND CREDIT: The unconditional guarantee of the United States government backing a debt for repayment.
INTEREST RATE: The interest payable each year on borrowed funds, expressed as a percentage of the principal.
INVESTMENT: Use of capital to create more money, either through income -producing vehicles or through more risk -oriented ventures designed to result in capital gains.
INVESTMENT PORTFOLIO: A collection of securities held by a bank, individual, institution, or government agency for investment purposes.
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LAIF: trade name for the California State Local Agency Investment Fund. Chapter 730, Statutes of 1976 of the State of California, established the LAIF. The LAIF enables local governmental agencies to remit money not required for immediate needs to the State Treasurer for the purpose of investment. In order to derive the maximum rate of return possible, the State Treasurer has elected in invest these monies with State monies as a part of the Pooled Money Investment Account. Each local governmental unit has the exclusive determination of the length of time its money will be on deposit with the State Treasurer. At the end of each calendar quarter, all earnings derived from investments are distributed by the State respective amounts deposited in the LAIF and the length of time such amounts remained therein. Prior to the distribution, the State's cost of administering the program are deducted from the earnings. The California Government Code states that monies placed for deposit in LAIF are in trust in the custody of the State Treasurer and cannot be borrowed or be withheld from the City. Further, the right of the City to withdraw its deposited money from the LAIF upon demand may not be altered, impaired, or denied in any way by any State official or agency based upon the State's failure to adopt a budget by July 1 of each new fiscal year.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
MARKET RISK: Market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by limiting the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis eliminating the need to sell securities prior to maturity for cash needs and avoiding the purchase of long-term securities for the sole purpose of short-term speculation
MARKET VALUE: the price at which a security is currently being sold in the market.
MATURITY: the date that the principal or stated value of debt instrument becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.
MORTGAGE PASS -THROUGH OBLIGATIONS: Securities that are created when residential mortgages (or other mortgages) are pooled together and undivided interests or participations in the stream of revenues associated with the mortgages are sold.
MUTUAL FUND: An investment company that pools money and can invest in a variety of securities, including fixed -income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by Securities and Exchange Commission (SEC) disclosure guidelines.
NEGOTIABLE CERTIFICATES OF DEPOSIT: Fixed deposit certificate that may be negotiated (traded) 12 2025 City of Pismo Beach Investment Policy January 21, 2025 Council Agenda 1-21-2025 9.C-14
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to a third party. The institution issuing the certificate promises to pay face value plus accrued interest at maturity or semi-annually if maturity is over one year.
NRSRO: This acronym stands for Nationally Recognized Statistical Rating Organization, which is a credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. NRSROs include S&P Global, Moody's, and Fitch ratings.
OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.
POOLED SECURITIES: Eligible securities held by an agent of depository for a depository and securing deposits of one or more local agencies.
PORTFOLIO: The collection of securities held by an individual or institution. The combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -registered securities broker -dealers, banks, and a few unregulated firms.
PRINCIPAL: The face or par value of an instrument.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: 1) The yield which can be attained on a security based on its purchase price or its current market price. 2) Income earned on an investment, expressed as a percentage of the cost of the investment.
RATING: The designation used by investors' services to rate the quality of a security's creditworthiness. Moody's ratings range from the highest Aaa, down through Aa, A, Bbb, Ba, B, etc. while S&P's rating range from the highest AAA, down through AA, A, BBB, BB, B, etc. 13 12025 City of Pismo Beach Investment Policy January 21, 2025 Council Agerfda 1-21-2025 9.C-15
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REFINANCING: Rolling over the principal on securities that have reached maturity or replacing them with the sale of new issues. The object may be to save interest costs or to extend the maturity of the loan.
REPURCHASE AGREEMENT (REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate her for this.
SAFEKEEPING: A service offered to customers for a fee, where securities are held in the vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SEC RULE 15(C)3-1: See Uniform Net Capital Rule.
SECURITIES: investment instruments such as bonds, stocks and other instruments of indebtedness or equity.
SPREAD: The difference between two figures or percentages. For example, it may be the difference between the bid and asked prices of a quote, or between the amount paid when bought and the amount received when sold.
SUPRANATIONAL OBLIGATIONS: A supranational organization is formed by a group of countries through an international treaty with specific objectives such as promoting economic development. Supranational organizations also issue debt in the United States. The most commonly recognized supranational debt is the International Bank for Reconstruction and Development (IBRD or World Bank), International Finance Corporation (IFC) and Inter -American Development Bank (IADB).
TREASURY BILLS (T-BILL): U.S. Treasury Bills are short-term, direct obligations of the U.S.
Government issued with original maturities of 13 weeks, 26 weeks and 52 weeks; sold in minimum amounts of $10,000 in multiples of $5,000 above the minimum. Treasury Bills are issued in book entry form only and are sold on a discount basis.
TRUSTEE: A bank designated as the custodian of funds and the official representative for bondholders.
UNDERWRITER: A dealer bank or financial institution which arranges for the sale and distribution of a large batch of securities and assumes the responsibility for paying the net purchase price. 14 2025 City of Pismo Beach Investment Policy January 21, 2025 Council Agenda 1-21-2025 9.C-16
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UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
U.S. GOVERNMENT AGENCIES: Instruments issued by various U.S. government agencies most of which are secured only by the credit worthiness of the particular agency.
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 15 12025 City of Pismo Beach Investment Policy
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LIST OF APPROVED BROKER/DEALERS
Multi -Bank Securities, Inc.
Attn: Peter Yanez Account
Executive
2400 E. Commercial, Suite 812
Ft. Lauderdale, FL 33308
855-928-0111/800-967-9045
[email protected]
LIST OF APPROVED CUSTODIANS FOR SAFEKEEPING OF SECURITIES US Bank
Attn: April Beauchamp
Relationship Manager
1 California Street, Suite 1000
San Francisco, CA 94111
415.774.2268
[email protected]
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PISMO BEACH CITY COUNCIL STAFF REPORT
A�syoBt Agenda Item #9.D
Meeting Date: January 21, 2025
TITLE:
Monthly Investment Transaction Report of the City's Cash and Investments for November 2024 of Fiscal Year 2025
RECOMMENDATION:
No action recommended; for information only.
DISCUSSION:
This report updates the City Council on the City of Pismo Beach's monthly transactions of the City's investment portfolio for the month ending November 30, 2024. California Government Code Section 53607 states that if the authority of the legislative body to invest or reinvest funds for the City is delegated to the City Treasurer, the City Treasurer shall make a monthly report of those transactions to the legislative body. Pursuant to Government Code Section 6505.5, this information is being provided here to the Pismo Beach Public Financing Authority, the Pismo Beach Public Financing Agency, and the Central Coast Blue Regional Recycled Water Authority, through the members of the City Council who sit on those boards.
The attached report includes all transactions of the City's investments managed by the City, including funds invested in various securities and the City's pooled funds invested in various financial instruments.
• Attachment 1 provides a summary of the City's cash, investments, and monthly interest earnings based on book value as of November 30, 2024. • Attachment 2 provides details on the investment transactions for the General Fund Reserve and City Pooled Funds A (for deferred capital projects), including: purchases or deposits; sales, maturities, calls or withdrawals; and interest earnings. • Attachment 3 provides details of the monthly transactions by fund for City Pooled Funds B (for current year expenditures) for the month ending November 30, 2024.
FISCAL IMPACT:
No fiscal impact from the report itself —information only.
ATTACHMENTS:
1. Summary Table for ALL Funds, including Book Values and Earnings Data for Investments in Other Financial Instruments
2. For the General Fund Reserve and City Pooled Funds A —Transactions on Investments in Securities
3. For City Pooled Funds B—Summary of monthly transactions by fund Prepared by: Vanessa Garris, Finance Manager
Submitted by: Nadia Feeser, Administrative Service Director / City Treasurer City Manager Approval:
Council Agenda 1-21-2025
9.D-1
Attachment 1
City of Pismo Beach
Attachment 1: Summary Table for All Funds,
including Book Values and Earnings Data for Investments in Other Financial Instruments Investment Name
Name of Institution
Type of Investment
Current
Earnings
Rate
Book Value
Actual Interest
Earned November
2024
Actual Year -to -
Date Interest
Earned Ending
11/30/2024
Data Sources
General Fund Reserves
US Bank
CDs/GASs/Corp/
2.41% avg
6,835,967
$ 11,232
$ 73,619
1 Muni Bonds
City Pooled Funds - A
US Bank
CDs/GASs/ Corp
2.28% avg
23,465,538
41,010
463,131
1 Bonds/ Muni Bonds
Total All Securities
$ 30,301,505
$ 52,242
$ 536,749
City Pooled Funds - B
US Bank
Custody
0.00%
$ -
$ 2,178
$ 30,054
1 City Pooled Funds - B
Local Agency Invest.
State Investment
4.71 %
401,798
75,425
2 Fund (LAIF)
Pool
City Pooled Funds - B
PFM Asset Mgmt
JPA Investment Pool
4.87%
13,307,192
132,152
307,191
3 CAMP
City Pooled Funds - B
US Bank
Checking & Sweep
4.29%
34,610,219
40,844
397,531
4 City Pooled Funds - B
$ 48,319,209
$ 175,174
$ 810,201
City Pooled Funds total A+ B
$ 71,784,747
$ 216,184
$ 1,273,332
Funds Held with Fiscal
Bond funds:
2017 Pier Project
$ 920,231
$ 2
$ 39
5 Agent
Wilmington Trust
Funds Held with Fiscal
Bond funds:
2017 CREB's
239,763
1 23
5 Agent
Wilmington Trust
Project
CalPERS Benefit Trust
OPEB Trust Account CaIPERS Benefit Trust Various managed by Account CalPERS
TOTAL, Cash and Investments at November 30, 2024:
TOTAL for City Managed Portfolio, Cash and Investments:
Notes:
Data Sources for Book Values and Actual Interest Earned:
1= Monthly investment statement from US Bank
2 = Monthly statement from Local Agency Investment Fund 3 = Monthly statement from PFM Asset Management LLC
4 = Monthly reconciled bank statement from US Bank
5 = Monthly statement from Wilmington Trust
6 = Monthly statement from CalPERS Benefit Trust Account $ 5,781,483 $ - $ 436,172 6
$ 85,562,191 $ 227,418 $ 1,783,186
$ 78,620,714 $ 227,415 $ 1,346,951
Council Agenda 1-21-2025 9.113-2
Attachment 2
CITY OF PISMO BEACH
Attachment 2: For the General Fund Reserve and City Pooled Funds A Transactions on Investments in Securities
November 30, 2024
INVESTMENT ACTIVITY
PURCHASES OR DEPOSITS
No Activity $ -
Total $ -
SALES, MATURITIES, CALLS OR WITHDRAWALS
11/08/24 Matured Enterprise Bank $ 245,000
Total
ACTIVITY TOTAL
INTEREST REVENUE
$ 245,000
$ (245,000)
GENERAL FUND RESERVE INVESTMENTS
Interest Earned on Investments $ 11,232
POOLED INVESTMENTS
Interest Earned on Investments $ 41,010
TOTAL INTEREST EARNED $ 52,242
Data Source: Monthly Download of Transactions from US Bank Council Agenda 1-21-2025 9.13-3
Attachment 3
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending: 11130/2024 Beginning Ending
Bank Account Description Bank ID Balance Cash Receipts Disbursements Transfers -In Transfers -Out Balance General Checking US Bank $13,668,320 $ 5,017,492 $ (4,215,667) $25,299,420 $ (5,159,346) $ 34,610,219 LAIF LAIF 401,798 - 401,798
PFMAsset Management LLC CAMP 34,175,040 132,152 - 4,000,000 (25,000,000) 13,307,192 Total all Bank Accounts $ 48,245,159 $ 5,149,644 $ (4,215,667) $29,299,420 $(30,159,346) $ 48,319,209 Beginning
Ending
Fund Description
Fund # Balance
Cash Receipts Disbursements Transfers -In Transfers -Out Balance
General Fund
General Fund
1001-10101 14,521,852
1,926,583 (1,450,833)
14,997,602
General Fund -Reserve
1001-10105 1,351,681
15,262 -
1,366,943.48
Half Cent Sales Tax Fund
1002 2,747,387
7,851 -
2,755,238
Special Revenue Funds
Gas Tax Fund
LTF - Streets
PEG Access Fund
Police Grant Fund
Housing In Lieu Fund
LBID Fund
Chapman House
Capital Proiects Funds
Capital Projects Fund
Public Facilities Fund
Park Development Fund
Circulation Fund
Development Impact Fee Fund
Developer Impact Fee Fund
Underground Utility Fund
2001
348,004
41,281
-
389,285
2002
446,373
3,602
(774)
449,202
2003
114,145
9,034
(4,915)
118,265
2004
170,892
(14,762)
-
156,131
2005
98,716
331
-
99,046
2006
3,307,710
196,782
(142,102)
3,362,389
2007
15,137
38 (1,390)
13,784
3001
3,274,315
593,668 (1,281,511)
2,586,473
3002
921
2 -
924
3003
392,680
(2,469)
390,211
3101
590,324
1,544 -
591,868
3102
170,750
1,419 (906)
171,263
3103
175,378
460 -
175,838
3201
17,338
45 -
17,384
Council Agenda 1-21-2025 9.D-4
Attachment 3
Attachment 3: For City Pooled Funds B • Summary of monthly transactions by fund City of Pismo Beach • Bank Account Proof of Cash for the month ending: 11/30/2024 Beginning
Ending
Fund Description Fund #
Balance
Cash Receipts Disbursements Transfers -In Transfers -Out Balance
Debt Service Funds
Public Finance Authority Fund
4001
Public Finance Authority Fund
4002
-
F
-
Freeway Foothills AD Fund
4101
802
2 804
Spyglass AD Fund
4102
13,355
35 -
13,390
Indio-EI Portal AD Fund
4112
776
2 778
Visalia Street AD Fund
4113
8,182
419 -
8,601
Enterprise Funds
Water Enterprise/Tax Fund
6101/6102
7,093,102
715,076
(113,088)
7,695,090
Water Construction Fund
6103
1,083,645
2,876
-
1,086,522
Water Expansion Fund
6104
1,000,662
2,623
1,003,285
Water Central Coast Blue JPA
6105
31,524
648
-
F 32,172
Wastewater Enterprise Fund
6201
795,375
(2,860)
(151,100)
641,415
Wastewater Construction Fund
6202
1,863,861
205,990
(192,475)
1,877,376
Wastewater Expansion Fund
6203
2,232,597
5,852
2,238,448
Wastewater CCB JPA
6204
64,005
1,315
-
F 65,320
LTF - Transit Fund
6301
-
-
-
Pier Operations Fund
6401
(1,939)
1,823
(5,151)
(5,267)
Parking Fund
6501
1,740,309
98,738
(64,256)
1,774,791
Internal Service Funds
Technology Service Fund 7101 65,489 118,794 (145,180) 39,103 Motor Vehicle Fund 7201 2,782,829 129,654 (612,319) 2,300,163 Trust & Agency Funds
SLO County TMD 8201 65,116 155,868 (170,887) 50,097
Control Funds
Payroll Control Fund
9301 1,299,566
5,600 127,143
1,432,308
Interest Control Fund
9302 190,352
59,481 -
249,832
Utility Billing Control Fund
9304 171,946
1,190
173,136
WR Control Fund
9305
-
Total all cash funds
48,245,159
4,283,795 (4,209,744)
- 48,319,209
Council Agenda 1-21-2025 9.D-5
Attachment 3
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending: 11/30/2024 Beginning Ending
Fund Description Fund # Balance Cash Receipts Disbursements Transfers -In Transfers -Out Balance
INVESTMENTS
General Fund
General Fund Money Mrkt Csh 1001-10108
0 0
General Fund - CD's 1001-10404
5,480,033 (245,000)
5,235,033
General Fund - Fed Agency 1001-10405
4,049,000
4,049,000
GF - Half Cent Sales Tax CD's 1002-10404
735,000
735,000
GF - Half Cent Sales Tax Fed Ag(1002-10405
500,000
500,000
GF - Half Cent Sales Tax Mny Mk 1002-10108
0 0
GF Reserve Money Mkt Cash 1001-10109
0 0
GF Reserve - CD's 1001-10403
3,427,967
3,427,967
GF Reserve - Fed Agency 1001-10402
2,208,000
2,208,000
GF Reserve - Building 1001-10406
202,000
202,000
GF Reserve - Building - Federal E 1001-10146
298,000
298,000
GF Reserve- Risk Mgmt - CD's 1001-10407
150,000
150,000
GF Reserve - Risk Mgmt - Fed Ac 1001-10140
50,000
50,000
GF Corp Bond - Pooled 1001-10141
529,143
529,143
GF Corp Bond - Reserve 1001-10145
500,000
500,000
GF Municipal Bonds Pooled 1001-10142
-
-
GF Municipal Bonds Reserve 1001-10143
Risk Mgmt Muni Bonds Reserve 1001-10144
Half Cent Sales Tax- Pooled 1002-10141
Half Cent Sales Tax- Muni Bond 1002-10142
GF CREB's Fiscal Agent 1001-10515
(0)
(0)
GF Treasury Note 1001-10410
Special Revenue Funds
Housing In Lieu- Mny Mkt Csh 2005-10108 (0) (0)
Housing In Lieu Fund 2005-10404 385,000 385,000
Housing In -Lieu Fed Agencies 2005-10405 140,000 140,000 Housing In -Lieu Treasury Note 2005-10410 - -
Capital Projects Funds
Park Develop. Fund Mny Mkt 3003-10108
Park Development Fund 3003-10404
Park Develop Federal Agencies 3003-10405
Circulation Fees Mny Mkt 3101-10108
Circulation Fees 3101-10404 - -
Develop. Impact Fee Mny Mkt 3102-10108 0 0
Development Impact Fee Fund 3102-10404 245,000 245,000
Impact Fees Federal Agencies 3102-10405 - -
Council Agenda 1-21-2025 9.D-6
Attachment 3
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending: 11/30/2024 Beginning Ending
Fund Description Fund # Balance Cash Receipts Disbursements Transfers -In Transfers -Out Balance
INVESTMENTS
Debt Service Funds
Public Fin Fiscal Agent -Pier 4002-10510
404 919,827
920,231
Public Fin Fiscal Agent-CREBs 4002-10515
241 239,522
239,763
Visalia Street CD's 4113-10404
100,000
- 100,000
Enterprise Funds
Water Fund Money Mrkt Csh 6101-10108
0 - 0
Water Fund CD's 6101-10404
735,000
735,000
Wtr Fund Federal Agencies 6101-10405
2,155,000
2,155,000
Wtr Fund Corp Bond - Pooled 6101-10141
-
Water Fund Treasury Note 6101-10410
-
Water Construction Money Mkt 6103-10108
(0)
(0)
Water Construction 6103-10404
504,363
- - 504,363
Wastewater Fund Money Market 6201-10108
0 0
Wastewater Fund CD's 6201-10404
490,000
490,000
Wastewater Fund Fed Agencies 6201-10405
2,100,000
2,100,000
WWtr Fund Corp Bond - Pooled 6201-10141
1,062,000
1,062,000
WWtr Fund Treasury Note 6201-10410
-
-
Parking Enterprise Money Mrkt 6501-10108
(0)
- (0)
Parking Fund Corp Bond -Pooled 6501-10141
500,000
500,000
Parking Enterprise 6501-10404
1,225,000
1,225,000
Parking Fund Federal Agencies 6501-10405
1,000,000
- 1,000,000
Parking Fund Treasury Note 6501-10410
-
-
Internal Service Funds
MVR Fund Money Mrkt Csh 7201-10108
0 0
MVR Fund CD's 7201-10404
1,526,000
- 1,526,000
MVR Fund Federal Agencies 7201-10405
250,000
- 250,000
CalPers Benefit Trust
OPEB Trust Account 8101-10408
5,781,483
- 5,781,483
Total all Investments
$ 36,328,633 $ 914,349 $
$ $ - $ 37,242,982
Total all Funds $ 84,573,791 $ 5,198,144 $ (4,209,744) $ - $ - $ 85,562,191 Council Agenda 1-21-2025 9.113-7
��TY OR
PISMO BEACH CITY COUNCIL STAFF REPORT
'O-syoBEPc� Agenda Item #9.E
Meeting Date: January 21, 2025
TITLE:
Paid Parking Quarterly Update -Second Quarter of Fiscal Year 2025 RECOMMENDATION:
No action recommended, for information only.
DISCUSSION:
This report provides the City Council and public with information on preliminary actual revenues and expenditures for Fiscal Year (FY) 2025 for the quarter ending December 31, 2024, and the current balance of the Parking Enterprise Fund. This report also provides an update on parking initiatives.
FY 2025 Financial Update
Table 1 details the preliminary actual revenues and expenditures for the second quarter of FY 2025 compared to the second quarter of FY 2024.
Table 1: Parking Enterprise Fund Revenues & Expenditures through 2nd Quarter FY 2025 2nd FY 2024 2nd Variance FY25 Variance FY25 v
Quarter Actuals Quarter Actuals v FY24 ($) FY24 (%)
July 1st Beginning Fund Balance $ 3,713,836 $ 5,846,885 $ (2,133,049) -36.5%
REVENUES
Parking Citations
Interest Earnings
Rents & Leases
Parking Kiosks/Meters
Parking Permits
Miscellaneous Revenue
TOTAL REVENUES
EXPENDITURES
Salaries & Wages
Benefits
Purchased Professional Services
Other Purchased Services
Operations and Maintenance
Other Expenses
TOTAL OPERATING EXPENSES
NET INCOME / (LOSS) As of
September 30, 2024
One-time Expenditures
June 30, 2025 Ending Fund
Balance
Carryforward One-time projects
June 30, 2025 Available Ending
Fund Balance
272,033 293,426 (21,393) -7.3%
63,592 58,975 4,617 7.8%
' #DIV/0!
1,388,352
1,302,479
85,873
6.6%
2,000
2,606 '
(5,080)
-71.8%
(79,644)
7,080
(86,724)
-104.8%
$ 1,646,333 $
1,664,566 $
(22,707)
-1.1%
$ 110,087 $
99,836 $
10,251
10.3%
40,065
28,107
11,958
42.5%
3,588
3,206
382
11.9%
2,569
40,132
(37,562)
-93.6%
66,037
42,589
23,449
55.1%
155,673
109,204
46,469
42.6%
$ 378,020 $
323,073 $
54,947
17.0%
$ 1,268,313 $ 1,341,493 $ (73,179) -5.5%
$ 224,558
$
1,447,751 $
(1,223,194)
-84.5%
$ 4,757,592
$
5,740,626 $
(983,035)
-17.1%
$ 372,679
$
- $
372,679 '
#DIV/0!
$ 4,384,913
$
5,740,626 $
(1,355,713)
-23.6%
Council Agenda 1-21-2025 9.E-1
As shown in Table 1, the preliminary estimate of revenues of the Parking Enterprise Fund at the end of the second quarter of FY 2025 (ending December 31, 2024) totaled $1,646,333 which is 1.1 % fewer parking revenues compared to the same period in FY 2024.
Operating expenses at the end of this same period, which include personnel costs, operating expenses, and contract services, totaled $378,020, which is 17.0% greater than operating expenditures through the second quarter of FY 2024. The projected net operating income (revenues less operating expenses) through the second quarter of FY 2025 is $1,268,313. After accounting for one-time expenditures of $372,679, the projected ending balance of the Parking Enterprise Fund at the end of the second quarter is $4,757,592.
In addition to the ongoing expenses, there are one-time budgeted costs of $597,237 for one-time projects. These projects include $300,000 for the Public Safety Facility project to support the parking functions and related public safety support of parking functions; $195,317 for the Police Department Parking Division Substation; $62,588 for the Addie Street Parking and Access Improvements project; $31,477 for additional parking meters; $4,000 for a radio system upgrade and reliability project; and $3,855 for other projects.
After considering these one-time costs of $224,558 and assuming the remaining budget of $372,679 is either spent or carried forward to next fiscal year, the projected available fund balance is $4,384,913.
Parking Initiatives
The paving project in the Price Street area, which commenced on April 8, 2024, has been successfully completed. This project included the construction of a center median on Price Street between Bay Street and Pomeroy Avenue and the installation of parking meters in this same area, including the adjacent stub streets. The parking meters are now operational.
Additional work remains to enhance the parking infrastructure. Poles for new street signs indicating "2-hour parking Monday through Thursday" and "paid parking Friday through Sunday" are yet to be installed. These signs will provide clear guidance to motorists about the new parking regulations.
Furthermore, the City will be installing medallions in each parking space. These medallions will correspond with the number displayed on the parking meters, facilitating easier identification and payment for parking. This remaining work is anticipated to be completed by late January 2025.
The City Council reviewed the Parking Advisory Committee (PAC) recommendations for changes to the downtown parking requirements, including options for updating the structure of the parking in -lieu program, in October and November of 2024. City Council direction to staff was as follows:
Council Agenda 1-21-2025 9.E-2
1. Reduce parking In -Lieu fees from $36,000 to $9,000 a space. Implemented through adoption of Council Resolution No. R-2024-065 on November 19, 2024.
2. Reducing overall parking requirements for allowed uses in the downtown. Will be brought forward as part of the Zoning Code update.
3. Create parking maximums to go along with the existing minimum parking requirements. Will be brought forward as part of the Zoning Code update.
4. Revise Zoning Code to allow uses in existing buildings in the downtown to change out without triggering a requirement for additional parking. Will be brought forward as part of the Zoning Code update.
5. Increase the number of in -lieu parking spaces that can be purchased from 30% to 100%, with Planning Commission approval. Will be brought forward as part of the Zoning Code update.
6. Prohibit the payment of in -lieu fees in association with satisfying the parking requirement associated with any transient lodging, residential or non-commercial use in the Downtown Planning area. Implemented through adoption of Council Resolution No. R-2024-065 on November 19, 2024. It is also being included in the Zoning Code update.
FISCAL IMPACT:
There is no fiscal impact from staff's recommendation. Fiscal impacts from parking revenues and expenditures are outlined in the above report.
ATTACHMENTS:
None
Prepared by:
Nadia Feeser, Administrative Services Director
Scot Graham, Community Development Director
Jeff Smith, Police Chief
Submitted by: Scot Graham, Community Development Director City Manager Approval:
Council Agenda 1-21-2025 9.E-3
G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syo Bt Agenda Item #9.F
Meeting Date: January 21, 2025
TITLE:
Update on January 9, 2023 and January 12, 2017 Emergency Proclamations RECOMMENDATION:
1. Review the need for continuing currently active local emergency proclamations;
2. Provide direction to staff if desired.
DISCUSSION:
Chapter 2.32 of the Pismo Beach Municipal Code empowers the City Manager, acting as the Director of Emergency Services, to proclaim the existence of a local emergency when the City is affected by an emergency and the City Council is not in session. An emergency exists when conditions are beyond the control of the services, personnel, equipment, facilities, and existing laws of the City. The declaration is an acknowledgement of the need for additional resources and expedited procedures to deal with the emergency. The Director of Emergency Services' declaration is subject to City Council ratification within seven days.
Currently active Emergency Declarations are those ratified by Resolution R-2023-001 on January 11, 2023, relating to winter storm damage, and by Resolution R-2017-012 on January 17, 2017, relating to winter storm damage. In accordance with Government Code Section 8630, the City Council is required to review the need for continuing the local emergency at least once every 60 days until the emergency is terminated. The following status report is provided for the Council's information. No action is recommended, but direction may be given to staff if desired.
January 11, 2023 Proclamation: Winter Storms
The City Council declared a state of emergency on January 11, 2023, via Resolution 2023-0011, ratifying the Emergency Services Director's proclamation of a local emergency in response to the January 2023 winter storms. On January 9, 2023, the County of San Luis Obispo declared an emergency which was followed by a declaration by Governor Newsom for the region. On January 14, 2023 President Biden approved a major disaster declaration for the January storms, making federal disaster aid available.
The storms, which began the first week of January, took a toll on the community, causing conditions of peril to the safety of persons and property due to flooding, bluff erosion, strong winds and other storm related damages.
Summary of Current Events
The City has received reimbursement for emergency protective measures in the amount of $26,977.76 from FEMA through the California Governor's Office of Emergency Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=459337&dbid=0&repo=Laserfiche Council Agenda 1-21-2025 9.F-1
Services (CalOES). Of the five sites submitted for reimbursement, four have been deemed ineligible by FEMA for various reasons. The Pier Avenue Storm Drain Outfall site has been approved by FEMA for a permanent repair project to replace the outfall pipe that was washed away during the storm. The City has received $620,838.75 in funding for completion of the repair project. Staff is soliciting quotes for engineering design services to prepare a construction bid package. Construction is anticipated to take place late spring/early summer of 2025. Staff has also submitted a request for reimbursement of management costs that were incurred working on the disasters. The City is eligible to receive 5% of total obligations, approximately $35,000, which will be disbursed after the Pier Avenue site has been constructed.
January 12, 2017 Proclamation: Winter Storms
The Pismo Beach City Council declared a state of emergency on January 12, 2017, via Resolution R-2017-0122, in response to the January 2017 winter storms. Shortly after the Council's declaration, the County of San Luis Obispo declared an emergency which was followed by a declaration by Governor Jerry Brown for the region. On February 14, 2017 and March 16, 2017 the President declared a major disaster for the early and late January storms, making federal disaster aid available. The storms, which began the first week of January, took a toll on the community, culminating with a Caltrans storm drain failure on Highway 101, which caused flooding of two hotels on Price Street, blockage of the City's Franklin storm drain outfall and debris scattered along Highway 101, Price Street and sidewalk, on Franklin Drive and various private parcels on January 20, 2017.
Summary of Current Events
Caltrans approved Advance Construction (AC) funding for the Cliff Avenue and Ocean Boulevard site on October 22, 2024. FHWA will federalize the funds at a future date, anticipated in spring of 2025. The City is eligible to begin reimbursable work now and will be able to submit for reimbursement once the funds have been federalized. Staff is working with Community Development Department to obtain necessary City permits prior to advertising for construction bids. It is anticipated that construction will take place in 2025.
FISCAL IMPACT:
There is no direct fiscal impact from this report.
January 2023 Winter Storms
The cost of damage from the January 2023 storms is estimated to be about $26 million.
January 2017 Winter Storms
The cost of damage from the January 2017 storms is approximately $12 million.
ATTACHMENTS:
None.
2 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=l 07586&dbid =0&repo=Laserfiche Council Agenda 1-21-2025 9.F-2
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Erica Inderlied, City Clerk
City Manager Approval:
.............
Council Agenda 1-21-2025 9.F-3
WS
PISMO BEACH CITY COUNCIL STAFF REPORT
- Agenda Item #9.G
Meeting Date: January 21, 2025
TITLE:
Annual Pavement Cut Moratorium Update
RECOMMENDATION:
No action recommended; for information only.
DISCUSSION:
On March 6, 2018, the City Council adopted Ordinance 0-2018-003 amending the Pismo Beach Municipal Code by adding Chapter 12.36, Pavement Cut Moratorium, to Title 12, Streets, Sidewalks and Public Places. The purpose of the pavement cut moratorium is to protect the public's investment in its infrastructure.
In order to help homeowners, developers, and utility companies better plan their projects to avoid additional costs by this moratorium and to better protect the City's infrastructure, staff complies compiles the full list of streets that have a pavement cut moratorium, along with the expiration date of the moratorium, as well as streets that are anticipated to be paved in the coming year or years. The full list of streets is shown below in Table 1 and is also available on the City's website: www.pismobeach.org/pavementcut . The list of anticipated streets will be developed following the update to the Pavement Management Program taking place this Spring and will be posted on the City's website at that time.
Table 1. Streets Covered by the Pavement Moratorium
Streets
Limits
Expiration Date
Capanna
Court
West end to Highland Drive
9/22/2028
Capanna
Street
Highland Drive to James Way
9/22/2028
Christine Way
Dugan Drive to Norma Drive
8/15/2028
Cima De
Colina
Clydell Court to Rancho Pismo
Drive
9/22/2028
CI dell Court
West end to Highland Drive
9/22/2028
CI dell Way
Highland Drive to El Viento
9/22/2028
Coral Circle
Highland Drive to the end
9/22/2028
Coral Court
West end to Highland Drive
9/22/2028
Crest Drive
Skyline Drive to James Way
4/11/2028
Cypress
Street
Stimson Avenue to Hinds Avenue
6/16/2025
Cypress
Street
San Luis Avenue to Wadsworth
Avenue
6/16/2025
Dugan Drive
Houston Way to Margo Way
8/15/2028
Effie Way
Dugan Drive to James Way
8/15/2028
Council Agenda 1-21-2025 9.G-1
Streets
Limits
Expiration Date
Elaine Way
Dugan Drive to Norma Drive
8/15/2028
El Viento
Whitecap Street to the east end
9/22/2028
Frances Way
Norma Drive to James Way
8/15/2028
Highland Drive
North City limit to James Way
9/22/2028
Hinds Avenue
Cypress Street to Dolliver Street
6/16/2025
Houston Way
Dugan Drive to Norma Drive
8/16/2028
Irish Way
Shamrock Lane (N) to Shamrock
9/8/2028
Lane S
James Way
Oak Park Boulevard to Effie Way
6/16/2025
La Colima
La Floricita to La Puesta del Sol
9/22/2028
La Floricita
El Viento to La Puesta del Sol
9/22/2028
La Garza
West end to Ventana Drive
9/22/2028
La Gaviota
El Viento to El Viento
9/22/2028
La Puesta del
La Gaviota to east end
9/22/2028
Sol
Limerick Lane
Shamrock Lane (N) to Shamrock
9/22/2028
Lane S
Margo Way
Dugan Drive to Norma Drive
8/15/2028
Mattie Road
West end at City Limits to Price
11/16/2028
Street
Miguelito Lane
Clydell Court to Rancho Pismo
9/22/2028
Drive
Morgan Drive
North City Limit to El Viento
9/22/2028
Norma Drive
West end to Margo Way
8/15/2028
Oakwood
Shamrock Lane to James Way
9/8/2028
Drive
Ocean
West end to near Placentia Avenue
5/1/2028
Boulevard
Panorama
Shamrock Lane to Ridge Road
9/8/2028
Drive
Price Street
Dolliver Street to Hwy 101
12/5/2029
Princessa
Clydell Court to Rancho Pismo
9/22/2028
Lane
Drive
Rancho Pismo
North end to Highland Drive
9/22/2028
Drive
Reef Court
West end to Coral Court
9/22/2028
Ridge Road
East City Limit to James Way
9/8/2028
Santos Way
Clydell Court to Rancho Pismo
9/22/2028
Drive
Shamrock
Ridge Road to Irish Way
9/8/2028
Lane
Shell Beach
Cliff Avenue to Terrace Avenue
4/1/2026
Road
Skyline Drive
Summit Drive to Crest Drive
1 4/11/2028
Council Agenda 1-21-2025 9.G-2
Streets
Limits
Expiration Date
Solar Way
Price Canyon Road to Bello Street
2/13/2028
Summit Drive
Skyline Drive to James Way
4/11/2028
Surf Street
Valley View Drive to Highland Drive
9/22/2028
Terrace
Along the frontage of Shell Beach
4/20/2027
Avenue
Elementary
Valley View
Coral Court to Highland Drive
9/22/2028
Drive
Valley View
El Viento to Ventana Drive
9/22/2028
Drive
Ventana Drive
North City limit to James Way
9/22/2028
Villa Court
West end to Capanna Street
9/22/2028
Vincente
Clydell Court to South end
9/22/2028
Court
Vista Del Mar
Shell Beach Road to Ocean
3/18/2029
Avenue
Boulevard
Vista Pacifica
James Way (N) to James Way (S)
9/15/2028
Circle
Wadsworth
North of Bello Street to entrance to
1/10/2030
Avenue
Judkins Middle School
Wadsworth
Entrance to Judkins Middle School
8/10/2028
Avenue
to Longview Avenue
Wave Avenue
Valley View Drive to Highland Drive
9/22/2028
Whitecap
Valley View Drive to Ventana Drive
9/22/2028
Street
White Oak
Oakwood Drive to Ridge Road
9/8/2028
Boulevard
Conclusion and Recommendation
There is no action recommended with this report; for information only.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
ATTACHMENTS:
None.
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Mike James, Assistant City Manager/Acting Director of Public Works City Manager Approval:
Council Agenda 1-21-2025 9.G-3
G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syoBt Agenda Item #9.H
Meeting Date: January 21, 2025
TITLE:
AB 2449/AB 2302 Legislative Meeting Teleconference Policy and Procedure RECOMMENDATION:
Adopt a Resolution establishing policies and procedures for compliance with Assembly Bills 2449 and 2032 relating to teleconference participation in legislative meetings; rescinding Resolution R-2023-021.
DISCUSSION:
The provisions of Assembly Bill 2449 (Rubio) became effective January 1, 2023. The bill amended the Brown Act with respect to the virtual (teleconference) participation in meetings by legislative body members, including the Council and Advisory Bodies.
The provisions of Assembly Bill 2302 (Addis) became effective January 1, 2025. The bill, written by City staff, authored by Assembly Member Addis, and co-authored by Senator Laird, amends Government Code Section 54953(f)(3) to clarify the requirements of AB 2449 in two key ways:
• The bill provides that, for any number of legislative meetings that occur on the same day, a member may attend all of them virtually under these rules and only have it count once against their yearly limit. For example, if a Council Member may only attend four meetings virtually in a given year, they may attend a special meeting, closed session, and regular meeting on the same day and only count it as one "use."
• The bill eliminates ambiguity by shifting the calculations for the number of meetings that a member may attend virtually, depending on the number of times their legislative body meets in a given year, from a percentage calculation to a simple whole number scale, outlined below. This will increase the number of meetings City Council Members may attend under these rules (from 4 to 5 each year).
Table 1. Comparison of Bill Provisions
AB 2449 (Eff. January 2023
AB 2302 (Eff. January 2025
Number of meetings that may be
Number of meetings that may be
attended virtually per year.
attended virtually per year.-
• Calculated for all meetings as 20% of
• Two, for bodies meeting once per
the number of regular meetings that
month or less
would normally be held in a year.
• Five, for bodies meeting twice per
• Capped at 2 for bodies that meet 10
month
times or less per year.
• Seven, for bodies meeting three or
• No more than three consecutive
more times per month
months of continuous use.
Council Agenda 1-21-2025 9.1-1-1
AB 2449 (Eff. January 2023
AB 2302 (Eff. January 2025
How "uses" are calculated:
How "uses" are calculated:
Every meeting (regular, special, and
All meetings occurring on the same day
closed) counted separately, regardless of
counted as one
date
It should be noted that the above interpretations of the requirements of AB 2449 are fairly conservative, and not all cities and counties have interpreted or implemented the bill in the same way. AB 2302 was enacted primarily to provide legislative relief for entities such as Pismo Beach who are rigorous in their interpretation of Brown Act requirements.
Existing Policy
On March 21, 2023, the City Council adopted R-2023-021 1, enacting a policy detailing the compliance measures that will be required of the City's legislative body members. The staff report2 for that agenda item provides a thorough analysis of the laws around teleconference (virtual) legislative meeting participation, as well as meeting absences, which remain the same except for the amendments made by AB 2302.
Revised Policy
The enactment of AB 2302 requires minor, but substantive, amendments to the existing policy. The revised policy resolution, provided as Attachment 1, has been amended to reflect the changes in how meetings and instances of virtual attendance are counted.
Additional minor adjustments have been made to reflect the City's current practice of not allowing public comment via virtual platform (Zoom), which requires that the City make an exception for meetings where any member attends under the rules of AB 2449/2302.
Conclusion and Recommendation
In order to assure consistency between the City's practices and state law, staff recommends that the City Council adopt a resolution (Attachment 1) revising the existing policy and procedure for teleconference attendance at legislative meetings under the provisions of the bill.
AB 2449 is projected to sunset on January 1, 2026, after which, unless further legislation is adopted, only the pre -pandemic, traditional Brown Act rules will remain. As such, the City's policy will expire concurrently.
FISCAL IMPACT:
There is no fiscal impact from adoption of this policy. Any workload associated with AB 2449 / AB 2302 compliance will be absorbed and not impact the adopted budget.
Full URL:
https://accesspismo.pismobeach.orq/WebLink/DocView.aspx?id=467137&dbid=0&repo=Laserfiche 2 Full URL:
https://accesspismo.pismobeach.orq/WebLink/DocView.aspx?id=466488&dbid=0&repo=Laserfiche Council Agenda 1-21-2025 9.11-11-2
ATTACHMENTS:
1. Resolution
Submitted by: Erica Inderlied, City Clerk
City Manager Approval:
Council Agenda 1-21-2025 9.H-3
Attachment 1
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA ESTABLISHING POLICIES AND PROCEDURES FOR COMPLIANCE WITH ASSEMBLY BILLS 2449 AND 2302 RELATING TO TELECONFERENCE PARTICIPATION IN LEGISLATIVE MEETINGS; RESCINDING RESOLUTION R-2023-021
WHEREAS, Assembly Bill 2449, effective January 1, 2023, amended the Brown Act, California Government Code Sections 54950 et seq., as it pertains to teleconference meeting participation by legislative body members; and
WHEREAS, AB 2449 significantly curtailed the ability of legislative body members to attend meetings virtually as compared to the relaxed teleconferencing laws that were enacted at the beginning of the COVID-19 and have seen been in effect; and WHEREAS, addressing these complex new regulations uniformly across all of the City's legislative bodies required the establishment of policy and procedure; and WHEREAS, on March 21, 2023, the City Council adopted Resolution R-2023-021, enacting a teleconference meeting participation policy; and WHEREAS, Assembly Bill 2302, effective January 1, 2025, amends the provisions of AB 2449 pertaining to the number of meetings that a legislative body member may attend virtually in a given year, necessitating an amendment to the City's teleconference participation policy.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
I. Applicability.
When a legislative body member wishes to attend a legislative meeting by teleconference under the provisions of Assembly Bills 2449 and 2302, codified at California Government Code Section 54953(f) et seq., the following policies and procedures shall apply. Nothing herein is intended to prevent a member's ability to attend a legislative meeting remotely if such attendance is otherwise authorized by Government Code Section 54953.
II. Terms.
"Chairperson" shall mean the Mayor or Chair of the legislative body, as applicable. "Vice - Chairperson" shall mean the Mayor Pro Tempore, or Vice -Chair of the legislative body, as applicable.
"City" shall mean City of Pismo Beach.
Council Agenda 1-21-2025 9.H-4
Attachment 1
"Description" shall mean a brief general description of a legislative body member's circumstances that warrant teleconference meeting attendance under the "Just Cause" exception or "Emergency Circumstances" exception, which need not exceed 20 words and need not to disclose any medical diagnosis, disability, or exempt personal medical information. (GC 54953(f)(2)(A)(i)—(ii))
"Disclosure" shall mean an announcement by the Member, made during the legislative meeting where the Member will attend by teleconference, disclosing the presence of other individuals over the age of 18 in the room at the Member's teleconference location, and the general nature of the individual's relationship to the Member. (GC 54953(f)(2)(B)) "Legislative body" shall have the same meaning as prescribed by Government Code Section 54952, i.e. a body that is subject to the Ralph M. Brown Act. "Meeting" and "legislative meeting" shall have the same meaning as prescribed by Government Code Section 54952.2, i.e. a meeting of a legislative body that is required to be noticed under the Ralph M. Brown Act.
"Member" shall mean a member of a legislative body.
"Notification" shall mean a notification from a legislative body member of the Member's need to attend a meeting by teleconference under the "Just Cause" exception.
Notifications shall not require legislative body approval. (GC 54953(f)(2)(A)(i)) "Request" shall mean a request from a legislative body member that their legislative body actively approve their request to attend a meeting by teleconference under the "Emergency Circumstances" exception. (GC 54953(f)(2)(A)(ii)) "Teleconference" attendance at a legislative meeting, for purposes of this policy, shall be presumed to be accomplished by Zoom or the equivalent two-way audio-visual virtual software platform in use by the City at that time. "Teleconference" attendance shall mean attendance solely by virtual platform and shall not include a Member who attends a meeting in person and secondarily views the meeting by virtual platform. Provisions of this policy shall apply only to teleconference attendance under AB 2449/AB 2302 and shall not constrain the Member's ability to attend by teleconference under other sections of the Brown Act.
III. Available Exceptions for Teleconference Attendance.
The Member shall be responsible for determining which of the two available exceptions is applicable to the Member's need to attend by teleconference. The Member's determination shall not be investigated by staff as to the veracity of any such request or claim. Such determination shall be subject to review by the legislative body alone. The available exceptions are:
Council Agenda 1-21-2025 9.H-5
Attachment 1
"Just Cause" (GC 54953(f)(2)(A)(i))
2. "Emergency Circumstances" (GC 54953(f)(2)(A)(ii))
IV. Exceptions Defined.
Exception #1: "Just Cause" circumstances are defined as any one of the following:
• Caregiving of a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner that requires a member to participate remotely. • A contagious illness that prevents the member from attending in person. • A need related to a physical or mental disability.
• Travel while on business of the legislative body or another state or local agency.
2. Exception #2: "Emergency Circumstances" are defined as a physical or family medical emergency that prevents a member from attending in person.
3. The foregoing definitions are set forth in this policy for convenience; in the event applicable law is changed to amend the nature of qualifying teleconference circumstances, the amended law shall supersede this section.
V. Limitation on Number of Uses.
Members may attend meetings by teleconference under AB 2449/AB 2302 no more than the following number of times per calendar year:
• City Council: Five (5) meetings per year
• Conference and Visitors Bureau Board: Two (2) meetings per year • Parking Advisory Committee: Two (2) meetings per year • Parks, Recreation and Beautification Commission: Two (2) meetings per year • Planning Commission: Five (5) meetings per year
The above limitations shall factor in all meetings noticed under the Brown Act, whether Regular, Special, Closed, Joint, or otherwise. In the event a Member attends by teleconference multiple meetings held on the same date, each meeting attended on that date shall be counted as one.
2. Notwithstanding any other provision, a Member may utilize the "Just Cause" exception no more than two (2) times per calendar year.
3. In the event a Member attends meetings by teleconference the maximum number of allowable times per year, the Member must either attend in person; attend by other permissible teleconference provisions; or be counted as absent, for the remaining meetings in that calendar year.
Council Agenda 1-21-2025 9.1-11-6
Attachment 1
VI. Procedure for Legislative Body Members.
1. A Member wishing to avail themselves of the "Just Cause" exception shall adhere to the following:
A. Notification of the member's need to attend by teleconference, along with the required description of the circumstances creating the need, shall be made in writing prior to the meeting, and/or orally at the start of the subject meeting or during any prior meeting.
a. If the notification and description are delivered prior to the meeting, the Member shall submit the notification and description:
• In writing by email;
• To the entire legislative body, preferably to the body's group email address;
• With a copy to staff.
Such communication to the entire legislative body shall be deemed to be not in violation of the Brown Act.
b. If the notification and description are delivered during a meeting prior to the meeting where the Member wishes to attend by teleconference, the Member shall make the required notification and description during the Member Comments order of business.
c. If the notification and description are delivered at the start of the subject meeting, the Member shall be present on the teleconference platform at the time the meeting is convened, and at the prompting of the Chairperson, shall make the required notification and description during the meeting prior to the attendance roll call. (Refer to Section 3 below.)
B. The Member shall disclose the presence of any other adults in the room at the teleconference location, and the general nature of their relationship to the member, during the subject meeting. This requirement shall apply regardless of the timing of the notification and description.
2. A Member wishing to avail themselves of the "Emergency Circumstances" exception shall adhere the following:
A. A request that the legislative body approve the Member's request to attend by teleconference, along with the required description of the circumstances creating the need, shall be made in writing prior to the meeting, and/or orally at the start of the subject meeting.
a. If the request and description are delivered prior to the meeting, the Member shall submit the request and description:
Council Agenda 1-21-2025 9.1-11-7
Attachment 1
In writing by email;
To the entire legislative body, preferably to the body's group email address;
• With a copy to staff.
Such communication to the entire legislative body shall be deemed to be not in violation of the Brown Act, so long as there is no discussion of any item of business within the legislative body's jurisdiction. Regardless, the legislative body's action to approve or deny the teleconference request must be taken during a noticed meeting.
b. If the request and description are made at the start of the subject meeting, the Member shall be present on the teleconference platform at the time the meeting is convened, and at the prompting of the Chairperson, shall make the required request and description during the meeting prior to the attendance roll call. (Refer to Meeting Procedures, below.)
B. The legislative body must move to approve or deny the request during the meeting prior to the attendance roll call. (Refer to Meeting Procedures, below.) C. The Member shall disclose the presence of any other adults in the room at the teleconference location, and the general nature of their relationship to the member, during the subject meeting. This requirement shall apply regardless of the timing of the request and description.
3. Notwithstanding any other provision, teleconferencing Member(s) shall participate through both audio and visual technology. Members may mute their microphone while not speaking, but Members shall be visible through the visual technology at all times during the meeting. In the event a member is not visible, the member shall be noted as absent during that period.
VII. Recordkeeping.
The Member shall be responsible for assuring that any description, notification, request, and/or disclosure related to teleconference attendance are made in a manner that may be placed into the meeting record.
2. To the extent that the Member's notification, description and/or request is delivered prior to the meeting, staff shall archive the written communication as agenda correspondence along with the meeting record.
3. To the extent that the Member's notification, description, request, and/or disclosure is delivered during a legislative meeting, staff shall record the same in the minute record, along with record of the legislative body's action to approve or deny any "Emergency Circumstances" requests.
Council Agenda 1-21-2025 9.H-8
Attachment 1
4. The legislative body's Minute Clerk shall keep data regarding each Member's use of teleconference attendance provisions under AB 2449/AB 2302, and apprise the Chairperson if any Member has reached their annual limit. (Refer to Limitation on Number of Uses, above.)
Vill. Meeting Procedures.
1. Business to be conducted by the legislative body relating to compliance with these regulations shall be conducted after the Call to Order, but prior to the attendance roll call, of the meeting where a Member will or may attend by teleconference. The Chairperson shall be responsible for the conduct of this portion of the meeting, with assistance from staff if needed. All related business shall be conducted in a manner that is evident to other meeting attendees and may be recorded in the meeting record.
Such business to be conducted prior to attendance roll call shall include, and be conducted in substantially this form:
A. If any Member is not present in person and the Chairperson is not aware of the Member's planned absence, the Chairperson shall acknowledge that the Member either is, or may be, present on the teleconference platform.
B. If necessary, staff shall confirm whether the Member is present on the teleconference platform.
C. If the Member is present on the teleconference platform:
a. If the Member has made their notification or request in writing prior to the meeting: The Chairperson shall note for the record that the Member has submitted a notification and description of the need to attend the meeting by teleconference under the "Just Cause" exception; or made a request and description to be permitted to attend by teleconference under the "Emergency Circumstances" exception.
b. If the Member has not made their notification or request in writing prior to the meeting: The Chairperson shall prompt the Member make their notification of the need to attend the meeting by teleconference, and description of the circumstances giving rise to the need under the "Just Cause" exception; or make their request to be permitted to attend by teleconference, and description of the circumstances giving rise to the need under the "Emergency Circumstances" exception.
c. If the Member makes a request to be permitted to attend by teleconference under "Emergency Circumstances" exception, whether before or during the meeting:
i. Any Member present in person may move to add an item of business to the agenda on an urgency basis to allow the legislative body to act on the Council Agenda 1-21-2025 9.1-11-9
Attachment 1
Member's request. If no motion is forthcoming, the Chairperson shall so move. Such action shall comply with Government Code Section 54954.2(b). ii. Thereafter, the Chairperson shall ask the remaining Members to either approve or deny the request. Any Member may move approval or denial, but if no motion is forthcoming, the Chairperson shall so move. Members shall consider the request in good faith and shall not capriciously deny the request. The request shall be deemed approved if at least a majority (at least 2 of 3, or 3 of 4) of the Members present in person consent. d. The Chairperson shall, finally, prompt the Member to disclose the presence of any other individuals over the age of 18 in the room at the Member's remote location, and the general nature of the individual's relationship to the Member.
Notwithstanding any other provision, this disclosure shall be made on record during the meeting.
D. If the Member is not present on the teleconference platform; if the Member refuses to make the required requests or disclosures; or if the Member's request to attend under the "Emergency Circumstances" exception is made but not approved, the Member shall be recorded as absent. (Refer to Failure to Comply, below.) E. This process shall be repeated for each Member not present in person who does, or may, wish to attend the meeting by teleconference.
F. The Chairperson shall then prompt the Meeting Clerk to proceed to attendance roll call.
2. In the event the Chairperson wishes to attend a meeting by teleconference, the Vice - Chairperson, if present in person, shall be responsible for performing the Chairperson's duties as outlined above. Thereafter, the teleconferenced Chairperson may chair the remainder of the meeting, or may ask that the Vice -Chairperson do so.
3. In the event both the Chairperson and Vice -Chairperson wish the attend the meeting by teleconference; or in the event the Chairperson wishes to attend by teleconference and the Vice -Chairperson is absent, an Acting Chairperson shall be selected from among the Members attending the meeting in person, in order to perform the Chairperson's duties as outlined above.
4. In the event three (3) or more Members attempt to join a meeting by teleconference; and/or in the event two (2) or fewer Members are present in person at the meeting location; staff shall announce that the meeting cannot be convened.
IX. Failure to Comply; Enforcement Measures.
1. In the event a Member attempts to attend a meeting by teleconference in excess of the allowable number of times per year; without making the necessary notices, Council Agenda 1-21-2025 9.H-10
Attachment 1
requests, or disclosures; or if the Member's request to attend under the "Emergency Circumstances" exception is made but not approved, the Chairperson shall, at the start of the meeting prior to the attendance roll call, ask the remaining legislative body members for concurrence to disallow the Member's attendance at the meeting.
After such concurrence, staff shall permit the Member to remain on the teleconference platform, but shall demote the Member to a passive attendee, and note the Member as absent for the attendance roll call, and in the meeting record.
2. Repeated inability or refusal to comply with the provisions of this policy, or related laws, may be grounds for consideration of dismissal of an Advisory Body Member by the City Council.
3. In the event a Member's inability or refusal to attend a meeting by teleconference in compliance with this policy, or related laws, results in the Member being recorded as absent from the meeting, existing policies and laws regulating legislative body member absences (including Bylaw provisions for Advisory Body Members, and Government Code Section 36513 for Council Members) shall apply.
X. Other Compliance Measures.
In addition to the above provisions relating the conduct of legislative body members, whenever at least one Member attends a meeting by teleconference under AB 2449/2302, staff shall be responsible for other applicable compliance measures, including but not necessarily limited to the following:
1. Staff shall assure that each posted agenda provides, and describes, means by which all members of the public may observe or attend the meeting and offer public comment, including a means to attend via teleconference platform. In the event the agenda does not describe the means for virtual public participation because staff was not aware at the time of meeting agenda publication that a Member would be in virtual attendance under these rules, staff will offer such instruction to the public orally near the beginning of the meeting.
2. Staff shall assure that members of the public are allowed to make public comment in real time during all allotted public comment periods, and shall give sufficient time for interested parties to indicate their interest in speaking, and unmute their devices, in order to allow them to comment via the teleconference platform.
3. Meeting proceedings shall be suspended in the event of a disruption that prevents the transmittal of meeting video and audio to members of the public via the teleconference platform; or in the event of a disruption within the City's control that prevents members of the public from making public comments via the teleconference platform. The legislative body shall take no further action on agenda items until public access to the meeting via teleconference platform is restored. If access cannot be restored within a reasonable amount of time, the Chairperson, or staff in the absence of the Council Agenda 1-21-2025 9.H-11
Attachment 1
Chairperson, shall announce that the meeting is adjourned to a future date and the adjournment shall be noticed in accordance with the Brown Act.
4. Staff shall give notice of, and implement, a procedure for swiftly resolving requests for reasonable accommodations for individuals with disabilities.
5. All votes taken at a meeting where any Member attends by teleconference under the provisions of AB 2449/AB 2302 shall be taken by roll call vote.
XI. Conflict Between Law and Policy.
In the event this policy conflicts with applicable state law, as exists or may be amended in the future, state law shall control, and the validity of the remaining sections of this policy shall be unaffected.
BE IT FURTHER RESOLVED by the City Council of the City of Pismo Beach that Resolution R-2023-021 is hereby rescinded in its entirety.
BE IT FINALLY RESOLVED by the City Council of the City of Pismo Beach that this Resolution shall sunset and be deemed rescinded on January 1, 2026, if not rescinded prior to that date. Notwithstanding the prior sentence, in the event the rules enacted by AB 2449/AB 2302 are extended to apply to meetings after January 1, 2026, this Resolution shall be deemed to extend to conform to the extended date identified in any extension.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 21 st day of January 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved:
Ed Waage, Mayor
Attest:
Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand on
Erica Inderlied, City Clerk
Council Agenda 1-21-2025 9.H-12
G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syo sEPAgenda Item #11.A
Meeting Date: January 21, 2025
TITLE:
Third Amendment to the Amended and Restated Solid Waste Collection Franchise Agreement with South County Sanitary Service, Inc. for Solid Waste Collection Services and Adoption of Integrated Solid Waste Rates effective January 1, 2025 and each January 1 from 2026 through 2029 via a New Rate Adjustment Methodology RECOMMENDATION:
1. Adopt a Resolution approving, and authorizing the City Manager to execute, a third amendment to the Amended and Restated Solid Waste Collection Franchise Agreement with South County Sanitary Service, Inc. for solid waste collection services;
2. Conduct a public hearing to hear public comment on proposed solid waste rates;
3. Adopt a Resolution approving Integrated Solid Waste rates charged by South County Sanitary Service effective January 1, 2025 and each January 1 from 2026 through 2029 via a new rate adjustment methodology.
DISCUSSION:
The purposes of this agenda item are to discuss and recommend approval to amend the City's Solid Waste Collection Franchise Agreement with South County Sanitary Service, Inc. (SCSS) for solid waste collection services (Attachment 2) and to bring forward for a public hearing and Council consideration of Integrated Solid Waste rates charged by SCSS effective January 1, 2025 and each January 1 from 2026 through 2029 via a new rate adjustment methodology (exhibit to Attachment 3.A).
BACKGROUND:
On December 16, 1997, the City Council approved a Franchise Agreement with SCSS for collection, diversion, and disposal of solid waste. On June 3, 2008, the City Council adopted Resolution No. R-2008-037, which approved an Amended and Restated Solid Waste Collection Franchise Agreement ("New Agreement"), which offered several benefits for the City and its residents and businesses. On June 21, 2016, the City Council amended the SCSS franchise agreement at the request of SCSS to extend the contract by 20 years, beginning with the first day of operation of a new Kompogas organics processing facility. In addition, the second change in the franchise agreement was to exclude tipping fee increases, approved by the County Board of Supervisors in 2014 for landfill improvements, when calculating whether the SCSS rates charged to customers are greater than the cumulative cost of living increase.
Through the terms of the Franchise Agreement, SCSS is entitled to compensation for its "labor, equipment, materials and supplies, taxes, insurance, bonds, overhead, transfer and transport, processing, division, disposal, provide and all other things necessary to perform all of the services required by [the] Agreement." This compensation is received Council Agenda 1-21-2025 11.A-1
through the rates and charges paid by the City's customers, which are presented to the City through cost -based rate adjustment applications and reviewed by the City Council.
This is the process by which SCSS requests an increase in rates for the integrated solid waste collection, diversion, and disposal services it provides to City residents and businesses. The City does not impose these rates, but rather it reviews the requested increase to determine compliance with the rate -setting procedures. SCCS charges the customer directly for the service, and SCCS is responsible for all collection activities for the service.
Per the Franchise Agreement, rates are reviewed in accordance with the "City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates" which was originally established in 1994 (1994 Rate Manual). The 1994 Rate Manual allows for a cost -based rate adjustment every three years and interim rate adjustments in the other two years. In interim rate periods, the operator is limited to adjustments based on inflation, tipping fee adjustments, and franchise or regulatory fee changes. During cost -based rate adjustment years, SCSS is able to request adjustments due to changes in other operational costs as set forth in the 1994 Rate Manual. The following table summarizes the SCSS rate review history beginning in 2005.
Year
Review Type/Rate Adjust Comment
Adjustment
/o
2005
Cost -based
5.60%
2006
Index -based
3.09%
2007
Index -based
3.76%
2008
Cost -based
3.00%
2009
N/A
0.00%
2010
N/A
0.00%
2011
City increased Franchise Fee from 6% to 10%. Approved rate is additional 3.9% beyond the 5.15% rate request
g 05%
2012
Index -based
0.00%
2013
Cost -based
3.20%
2014
Index -based
2.05%
2015
N/A
0.00%
2016
Cost -based, included additional 1.1 % for Organics, Franchise Amendment: extending contract by 20 years, with new Kompogas organics processing facility and exclude tipping fee increases, approved by County Board of Supervisors in 2014 for landfill improvements, in calculation of SCSS rates
3.25%
2017
Index -based
1.00%
2018
Index -based
1.60%
2019
Cost -based, included 4.5% increase for recycling via Materials RecoveryFacilityMRF operations
o
10.06/o
2020
Index -based
1.70%
2021
Index -based
0.70%
2022
Cost -based, included 7.71 % for food and green waste recycling via MRF operations to comply with Senate Bill SB 1383
22 19%
Council Agenda 1-21-2025 11.A-2
Year
Review Type/Rate Adjust Comment
Adjustment
/o
2023
Index -based
9.10%
2024
Index -based
3.00%
2025
Cost -based, proposed with new rate setting methodology and
4.82%
proposed third amendment to Franchise Agreement
Process of Updating the Rate Setting Manual
The City of San Luis Obispo has been working with Waste Connections, SCSS's parent company, to develop and implement a new rate adjustment methodology to replace the 30-year-old Rate Manual. The key objectives for a new rate adjustment methodology are to enhance rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness. The City of San Luis Obispo contracted with R3 Consulting Group, Inc. (R3) to support development and negotiation of a new rate adjustment methodology and the new rate adjustment methodology is available for consideration by other public agencies in San Luis Obispo County. The City of Pismo Beach has been following the development of the new rate adjustment methodology, which will be presented to the City Council as an amendment to the agreement with SCSS in association with the January 21, 2025 public hearing regarding the 2025 rate adjustment request from SCSS.
The City of San Luis Obispo also contracted with R3 to conduct a detailed review of the 2025 cost -based rate applications submitted by Waste Connections to ten agencies in San Luis Obispo County, including the City of Pismo Beach. The City of Pismo Beach received an initial rate adjustment request from SCSS on July 3, 2024, for an adjustment to the City's solid waste rates of 3.97% effective January 1, 2025. After R3's review, and adjustments necessary for effectuation of the new rate methodology and new regional service enhancements, the recommended 2025 rate adjustment is 4.82%.
Review of 2025 Rate Adjustment Request
R3 completed a thorough review of SCSS' 2025 cost -based rate adjustment application and adjustments necessary for the new recommended rate adjustment methodology.
After careful review of the rate adjustment request, and the outcomes of negotiations of a new rate adjustment methodology between the City of San Luis Obispo and Waste Connections, R3 completed a report evaluating the 2025 rate adjustment request and the new rate methodology (exhibit to Attachment 2). R3's review suggests that the original
3.97% adjustment effective January 1, 2025, is justifiable in accordance with the 1994 Rate Manual and may be accepted by the City in the event that the City does not adopt the new rate adjustment methodology. R3's report further recommends the new rate adjustment methodology and the corresponding rate adjustment of 4.82%, which will provide key benefits to the City in terms of rate predictability and stability and new enhanced services.
New Rate Adjustment Methodology
The City of San Luis Obispo, in its capacity as the lead agency on the solid waste rate adjustment methodology update process, and in partnership with Los Osos Community Services District and Waste Connections, completed negotiations and arrived at tentative agreement with Waste Connections regarding the terms and conditions of a new Council Agenda 1-21-2025 11.A-3
methodology. The outcome was the result of extensive good faith negotiations between the City and Waste Connections, with due consideration to input provided by other public agency stakeholders, including the City of Pismo Beach.
Pending City Council approval, the new methodology will replace the 1994 Rate Manual and will regulate annual rate adjustments for the City's solid waste rates starting in 2026.
The new methodology fulfills key objectives including rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness. Additionally, the new methodology can be applied on a regional scale and is available as recommended alternative to the 1994 Rate Manual for all agencies, including the City of Pismo Beach.
The key features of the new methodology include:
• Capped CPI Adjustments: Starting in 2026, rate adjustments will be based on the Garbage and Trash CPI, with a floor of 2% and a cap of 5%. Amounts under 2% or over 5% will carry forward. The CPI adjustment will apply to Waste Connections' collection and post -collection cost centers.
• Revenue Balancing Mechanism: Starting in 2027, adjustments to rates will account for shortfalls or surpluses in Waste Connections' actual revenues compared to projected revenues from prior years. For example, if Waste Connections' 2025 revenues exceed projections, the amount of surplus revenues will be credited to the rates in 2027 (and vice versa), achieving fairness in compensation and rates for the company and for ratepayers. Such adjustments would take place annually and will be independent of the CPI cap and floor noted above. It should be noted that SCSS's 2023 net income was such that, were a revenue balancing mechanism in place at the time, surplus revenues would have been carried forward to the 2025 rate year and would have offset the forthcoming rate adjustment.
• Less Frequent Cost -Based Adjustments: Currently, solid waste rates are adjusted based on the 1994 Rate Manual every three years on Waste Connections' costs. Via the new methodology, cost -based adjustments would occur a maximum of every five years, and only if requested by Waste Connections or the City. The first opportunity for a cost -based adjustment will be for the 2030 rate year. If neither Waste Connections nor the City request a cost -based adjustment, then the CPI adjustment approach will be applied. Cost -based adjustments will be based on Waste Connections' consolidated audited financial statements for the region. Timeframes for cost -based adjustment application and review process will be ample, such that the City will have sufficient time for review and approval processes and such that the potential for delay in implementation is minimized.
• Updated Depreciation Lifespan for Trucks: The 1994 Rate Manual set a 7-year depreciation schedule for solid waste collection trucks. Modern solid waste collection trucks have a 10-year lifespan, and the depreciation schedule was adjusted accordingly.
Council Agenda 1-21-2025 11.A-4
• Updated Profit Allowance: The 2025 rate adjustment will include a 9% profit allowance of projected collection costs and in 2026 and thereafter the profit allowance will be 10%. For context, the 2025 profit allowance is approximately 5% of revenues and R3 estimates that the 2026 profit allowance will be approximately 5.5% of revenues. • Removed Limitation on Corporate Overhead: The 1994 Rate Manual placed a limitation on corporate overhead costs. Today, corporate overhead costs fund legal, tax, payroll, human resources, engineering, compliance, IT, training and recruiting programs. The City and Waste Connections agreed to adjust corporate overhead based on Waste Connections' actual corporate overhead, which are higher than the prior limitation. Going forward from 2026 through 2029, compensation to Waste Connections for corporate overhead will be as per the CPI adjustment referenced above, and then potentially reset to actual costs when and if a cost -based rate adjustment is conducted.
• Extraordinary Adjustments: The California Air Resources Board (CARB) Advanced Clean Fleets (ACF) regulation requires all solid waste collection trucks to be zero emissions in 2042. This includes a phased in plan to get the percentage of the fleet to be zero emission vehicle (ZEV) with 10% by 2030, 25% by 2033, 50% by 2036,75% by 2039 and100% by 2042. During CPI Adjustment years, Waste Connections may request extraordinary rate adjustments due to changes in law affecting collection operations, including for compliance with CARBS's ACF electrification mandate (which may necessitate change to depreciation schedules). The City may, but is not obligated to, consider requests for extraordinary rate adjustments due to changes in law affective post -collection operations. Requests for extraordinary change are subject to good faith meet and confer negotiations between City and Waste Connections.
• Regional Service Enhancements:
o Customer Assistance Program: 20% low-income discount provided to residential customers using 32-gallon cart service, using existing jurisdictional practices on low-income relief for their offered utility type services with evidence of qualifying financial hardship (e.g., enrollment in PG&E's CARE program). o Free Bulky Waste Collections: Collection of a bulky waste item twice annually from residential accounts at no cost via bi-annual clean-up weeks. o Annual Cart Exchange: Once annual exchange of a residential solid waste, recycling, or organics cart per customer account.
Primary Factors Affecting Rate Adjustment
Per R3's report, the key factors affecting the 2025 rate adjustment are summarized as follows:
Council Agenda 1-21-2025 11.A-5
• A doubling of post -collection costs for organics processing since 2022 due to updated costs for processing infrastructure to meet the requirements of Senate Bill (SB) 1383.
• Market rate adjustment of post -collection costs for landfill disposal, which have remained flat since 2016. Landfill disposal rates have been below market at $41 per ton since 2016 and will increase to a fair market cost of $70 per ton in 2025.
Waste Connections costs related to the landfill have increased due to factors including normal cost increases, increased costs of construction, and new costs for CARB compliant operating equipment.
• Cost -of -living changes in collection costs, which include labor, capital, operating expenses, insurance and overhead costs, for 2025 increases over 2024 amounting to 4.15%.
• Additional costs for regional service enhancements, described above, which add
0.37% to the 2025 rate adjustment.
Taken altogether, and including appropriate adjustments to SCSS' original request to achieve the objectives of the new rate methodology, the 2025 rate adjustment effective January 1, is 4.82% as shown in the table below:
Original Adjustment per 1994 Rate Manual
3.97%
Revised Depreciation Schedule
-1.33%
Remove Limitation on Corporate Overhead
1.51 %
Regional Service Enhancements
0.37%
Updated Profit Allowance
0.22%
Recalculated Franchise Fee
0.08%
Revised Adjustment for New Methodology
4.82%
Franchise Agreement Termination Clause
The Franchise Agreement also contains language that provides that if the rate adjustment request compared with the rate in effect at the date of the Franchise Agreement exceeds the cumulative cost of living increase from that same date, the City has the option of terminating the Franchise Agreement at any time within nine months following approval of the requested rate adjustment. The "trigger" calculation does not limit the amount of adjustment that SCSS can request; it simply incentivizes SCSS to keep its requested adjustments below the cumulative increase in CPI to avoid the City opting to terminate the Franchise Agreement.
At this time, staff recommends that the City not pursue the termination ("trigger") option set forth in Section 8.3 of the City's Franchise Agreement with SCSS. Based on a detailed review of costs as presented in Attachment 3.A, the costs are reasonable and rates have been calculated in accordance with the 1994 Rate Manual and the recommended new rate adjustment methodology. Chart 1 shows that solid waste rates for Pismo Beach are among the lowest in the Central Coast area for single-family residential services.
Council Agenda 1-21-2025 11.A-6
Chart 1: 32-Gallon Monthly Service Rate Comparison to Other Communities $50
$40
$30
$20
$10
$0
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n. U U 'D U) U C 0 5 C c0 C O U O 0 C a) C 2 cD _ ._
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Also, and as previously reported to the Council in 2022, the requirements of SB 1383 have created significant new regulatory requirements, burdens, and costs for the City, and its solid waste partners such as the IWMA and SCSS. SCSS is required by agreement to help the City meet certain SB 1383 requirements, and termination of the Franchise Agreement with SCSS at this time would create disruption in the City's efforts to comply with State regulations.
Conclusion and Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) approving, and authorizing the City Manager to execute, a third amendment to the Amended and Restated Solid Waste Collection Franchise Agreement with South County Sanitary Service, Inc. for solid waste collection services (Attachment 2); Conduct a public hearing to hear public comment on proposed solid waste rates; and adopt a Resolution (Attachment 3) approving Integrated Solid Waste rates charged by South County Sanitary Service effective January 1, 2025 and each January 1 from 2026 through 2029 via a new rate adjustment methodology (Attachment 3.A).
FISCAL IMPACT:
If approved, the proposed rate increases would apply to all residential and business accounts in Pismo Beach. The table below shows some of the increases in monthly costs to SCSS customers in Pismo Beach under the proposed increases for January 1, 2025.
Council Agenda 1-21-2025 11.A-7
Service
Pickups Per
Current Monthly
Proposed Rate
Proposed Monthly
Description
Week
Rate Effective
Adjustment
Rate Effective
1 /1 /2024
1/1/2025
Residential:
32-Gallon
1 $23.76
$1.15
$24.91
Waste Wheeler
64-Gallon
1 $47.56
$2.29
$49.85
Waste Wheeler
Business Customers:
One 32-Gallon
1 $31.74
$1.53
$33.27
Waste Wheeler
Three 32-Gallon
2 $130.68
$6.30
$136.98
Waste Wheelers
1- d dum ster
5 $377.86
$18.21
$396.07
4- d dum ster
7 $1,511.23
$72.84
$1,584.07
City:
Several garbage cans and
$15,167.03
$731.05
$15,898.08
dumpsters
ATTACHMENTS:
1. Resolution adopting SCSS Third Amendment to the Franchise Agreement
2. Third Amendment to the Franchise Agreement, including Exhibit E to Franchise Agreement: Annual Rate Adjustment Methodology and R3 Report on 2025 Rate Adjustment and New Rate Methodology Report
3. Resolution adopting integrated solid waste rates
3.A. Exhibit A to Resolution: South County Sanitary Service Rate Schedule for Integrated Solid Waste Services in Pismo Beach, effective January 1, 2025 and each January 1 from 2026 through 2029 via a new rate adjustment methodology.
Prepared by:
Nadia Feeser, Administrative Services Director
David Fleishman, City Attorney
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Council Agenda 1-21-2025 11.A-8
Attachment 1
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA APPROVING, AND AUTHORIZING THE CITY MANAGER TO
EXECUTE, A THIRD AMENDMENT TO THE AMENDED AND RESTATED SOLID
WASTE COLLECTION FRANCHISE AGREEMENT WITH SOUTH COUNTY
SANITARY SERVICE, INC. FOR SOLID WASTE COLLECTION SERVICES WHEREAS, the City of Pismo Beach has a franchise agreement with South County Sanitary Service, Inc., (SCSS) for solid waste collection services, effective as of July 1, 2008 and expiring on June 30, 2023; and
WHEREAS, the agreement provides, among other things, that SCSS will provide solid waste, recyclable materials, and green waste collection and disposal services for the City; and
WHEREAS, this agreement has been periodically amended and restated, and further amendment is now warranted to reflect an updated rate adjustment methodology to replace the outdated "City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates" which was originally established in 1994 (1994 Rate Manual); and
WHEREAS, the new rate adjustment methodology is designed to enhance rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby approves, and authorizes the City Manager to execute, the Third Amendment to Amended and Restated Solid Waste Collection Franchise Agreement with South County Sanitary Service, as depicted in staff's report dated January 21, 2025.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 21 st day of January 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved:
Ed Waage, Mayor
Attest:
Erica Inderlied, City Clerk
Council Agenda 1-21-2025 11.A-9
Attachment 1
IN WITNESS WHEREOF, I have hereunto set my hand on
Erica Inderlied, City Clerk
Council Agenda 1-21-2025 11.A-10
Attachment 2
THIRD AMENDMENT
TO
AMENDED AND RESTATED
SOLID WASTE COLLECTION FRANCHISE AGREEMENT
BETWEEN
CITY OF PISMO BEACH
AND
SOUTH COUNTY SANITARY SERVICE INC.
JANUARY 2025 FINAL DRAFT
{00120647. DOCX.2}
Council Agenda 1-21-2025 11.A-11
Attachment 2
City of Pismo Beach / South County Sanitary Service, Inc.
Third Amendment to Amended and Restated Solid Waste Collection Franchise Agreement
THIRD AMENDMENT TO
AMENDED AND RESTATED
SOLID WASTE COLLECTION
FRANCHISE AGREEMENT
THIS THIRD AMENDMENT TO AMENDED AND RESTATED SOLID WASTE COLLECTION FRANCHISE AGREEMENT (this "Amendment") is made and entered into this day of , 2025 in the State of California, and shall modify that certain Amended and Restated Solid Waste Collection Franchise Agreement, dated June 3, 2008 as previously amended by a first amendment dated August 3, 2016, and a second amendment dated May 12, 2022 (collectively the "Agreement"), by and between the CITY OF PISMO BEACH, a general law city in the State of California ("City") and SOUTH COUNTY SANITARY SERVICE, INC., a California corporation ("Contractor"). City and Contractor may be collectively referred to herein as the "Parties" and individually as a "Party", unless specifically identified otherwise.
This Amendment #3 is made and entered into on the basis of the following facts, understandings, and intentions of the parties:
WHEREAS: The Parties entered into the Agreement on June 3, 2008; and WHEREAS: The Agreement originally provided for a rate setting methodology according to the "City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates," which was originally established in 1994; and
WHEREAS: The City of San Luis Obispo contracted with R3 Consulting Group, Inc. (R3) to support development and negotiation of a new rate adjustment methodology; and WHEREAS: The new rate adjustment methodology, entitled "Annual Rate Adjustment Methodology," is available for consideration and use by other public agencies in San Luis Obispo County; and WHEREAS: Both Parties have, in good faith, negotiated changes to the Agreement necessary to support the transition to a new rate setting methodology using the New Solid Waste Rate Adjustment Methodology and 2025 Rates, as set forth herein.
AGREEMENT
NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF
WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES AGREE TO AMEND THE AGREEMENT, AS FOLLOWS:
Article 1. DEFINITIONS
Article 1 of the Agreement is hereby amended to add the following definition:
"Manual" means Exhibit E, the "Annual Rate Adjustment Methodology," attached hereto and incorporated herein by reference, as supplemented by the "New Solid Waste Rate Adjustment Methodology and 2025 Rates: commissioned by the City of San Luis Obispo and prepared by R3 Consulting Group, Inc., dated November 1, 2024", provided that in the event of a conflict between the two documents, the "Annual Rate Adjustment Methodology" attached as Exhibit E shall prevail.. Any direct or indirect references to the "City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates, 1994 Edition" or "SLO Manual" in the Agreement shall be replaced with "Manual."
{00120647.DOCX.2}3anuary 2025 FINAL DRAFT Page 2
Council Agenda 1-21-2025 11.A-12
Attachment 2
of Pismo Beach / South Countv Sanitary Service, Inc.
Third Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Article 4. CONTRACTOR'S COMPENSATION AND RATES
Section 4.5.1 (City Request to Direct Changes — General) shall be revised to read as follows:
City may request Contractor to perform additional services (including new diversion programs, etc.) or modify the manner in which it performs existing services. Pilot programs and innovative services that may entail new Collection methods, different kinds of services and/or new requirements for Waste Generators are included among the kinds of changes that City may request. Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide additional or expanded diversion services pursuant to the terms of Article 4.5.2 (New Diversion Programs). Contractor shall be entitled to an adjustment in its compensation for providing such additional or modified services in accordance with the Manual's procedures for extraordinary adjustments for "Change in Scope" (as that term is defined in the Manual).
Article 8. CONTRACTOR'S COMPENSATION AND RATES
Article 8 of the Agreement is hereby replaced in its entirety and amended to read as follows:
8.1 General
Contractor's compensation provided for in this Article shall be the full, entire and complete compensation due to Contractor pursuant to this Agreement for all labor, equipment, materials and supplies, taxes, insurance, bonds, overhead, transfer and transport, processing, division, disposal, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed, Contractor will not be entitled to any further rate adjustments as a result of customer delinquencies and other bad debt issues.
Contractor does not look to the City for payment of any sums under this Agreement in consideration of the right to charge and collect from customers for services rendered at rates not higher than those approved by the City from time to time. The City shall have the right to establish a cap on those rates as it deems appropriate so long as the revenues forecasted to be received by Contractor from charging such rates can reasonably be expected to generate sufficient revenues to provide for Contractor's compensation as calculated in accordance with the Manual.
8.2 Collection Rates
Service rates caps shall be established by Resolution adopted by the City Council. Contractor shall provide the services required by this Agreement and charge no more than the rates authorized by City Resolution.
8.3 Rate Reviews and allowable profit
Ordinary and extraordinary rate reviews shall be submitted and considered in accordance with the procedures described in the Manual, except as that may be modified by the City from time to time. In addition to the procedures contained in the Manual, Contractor shall submit any and all data requested by and in the format prescribed by the City. In the event Contractor shall fail to meet the schedule set forth in Manual, a revision of rates for the following year shall not be authorized until the 1st day of the first calendar month following a 120 day period from the date that the complete application is submitted and such revision shall contain no consideration for Contractor's failure to submit the in accordance application with the schedule set forth in the Manual.
If at any time during the term of this Contract, the Contractor requests and is granted a rate increase by {00120647.DOCX.2}3anuary 2025 FINAL DRAFT Page 3
Council Agenda 1-21-2025 11.A-13
Attachment 2
of Pismo Beach / South Countv Sanitary Service, Inc.
Third Amendment to Amended and Restated Solid Waste Collection Franchise Agreement the City that when the new rate is compared to the rate at the Effective Date exceeds the cumulative cost of living increase from the Effective Date, the City shall have the option of terminating the Agreement. The cumulative cost of living increase from the Effective Date shall be calculated in accordance with the Manual. Such option shall be available for a period of nine (9) months following the granting of the rate increase.
When calculating the change in the rate, costs resulting from Section 7.4 Other Fees, and Section 5.10 Garbage and Recycling Service in Public Areas will not be included.
8.4 Publication of Rates
Contractor shall provide written notice to subscribers of all rate changes, prior to implementation. If appropriate, this notice should include reasons and background for the rate change.
Article 9. RECORDS, REPORTS AND INFORMATION AND HEARING REQUIREMENTS The first paragraph of Section 9.6 (Annual Financial Audit) shall be revised to read as follows:
Contractor shall submit to the City annual audited financial statements prepared at Contractor's expense by an independent Certified Public Accountant not later than one hundred eighty (180) days following the expiration of the Contractor's fiscal year. Pursuant to the Manual, at the time a rate application request is submitted to City, the financial forms contained in the rate application must be reconciled to the audited financial statements to provide assurance that all of the Contractor's activities are accounted for.
City and Contractor agree and acknowledge that, except as explicitly modified by this Third Amendment or by necessary implication, the Agreement remains in full force and effect. In the event of a conflict between the terms of this Third Amendment, the Agreement, and/or any amendments to the Agreement, this Third Amendment shall prevail, and the terms of Exhibit E shall prevail in the event of a conflict relating to rate setting procedures among or between any of the foregoing documents. This Amendment may be executed in one or more facsimile or original counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, City and Contractor have executed this Third Amendment to Amended and Restated Solid Waste Collection Franchise Agreement on the day and year first hereinabove set forth.
CITY:
I:Kt3►III I[LT41I[Q 3
CITY OF PISMO BEACH SOUTH COUNTY SANITARY SERVICE, INC.
By: By:_
Name: Jorge E. Garcia Name:
Title: City Manager Title:
Attest:
{00120647.DOCX.2}3anuary 2025 FINAL DRAFT Page 4
Council Agenda 1-21-2025 11.A-14
Attachment 2
of Pismo Beach / South Countv Sanitary Service, Inc.
Third Amendment to Amended and Restated Solid Waste Collection Franchise Agreement Bv:
Name: Erica Inderlied
Title: City Clerk
Approved as to form:
Bv:
Name: Dave Fleishman
Title: City Attorney
{00120647.DOCX.2}3anuary 2025 FINAL DRAFT
Council Agenda 1-21-2025 11.A-15
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
Section 1 Objectives
This Exhibit details the process by which Maximum Service Rates are adjusted annually to provide fair and adequate compensation to Franchisee for collection of solid waste and other services provided to Customers and the City per the Agreement. The annual rate adjustment methodology described herein fulfills key objectives established by the City and Franchisee, including rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness.
Section 2 Index -Based Rate Adjustments
Except in the case of a Cost -Based Rate Adjustment (see Section 3, below) Franchisee's Maximum Service Rates shall be adjusted via the Index -Based Rate Adjustment methodology described in this section. The Index -Based Rate Adjustment methodology shall be used to adjust Maximum Service Rates effective each January 1 of 2026, 2027, 2028, and 2029 and any subsequent year during which a Cost -Based Rate Adjustment is not allowed or not requested by the City or the Franchisee.
In years during which Maximum Services Rates are to be adjusted pursuant to this Index -Based Rate Adjustment methodology, Franchisee shall submit a report to the City on or before September 1 detailing its calculations of Index -Based Rate Adjustment. City shall have the right to review Franchisee's calculations of Index -Based Rate Adjustment for mathematical accuracy and adherence to the terms and conditions of this Exhibit. City shall prepare written findings regarding adjustments to the Franchisee's calculations of Index -Based Rate Adjustment that are required for mathematical accuracy and adherence to the terms and conditions of this Exhibit on or before October 30.
Index -Based Rate Adjustments shall be prepared and calculated in accordance with the steps described below. All Index -Based percentages shall be rounded to the nearest hundredth of a percent, and all cost calculations shall be rounded to the nearest dollar.
A. Calculation of CPI Adjustment to Franchisee's Collection Services and Post -Collection Services
Franchisee's prior year cost projections for Collection Services and Post -Collection Services shall be adjusted in accordance with the Consumer Price Index (CPI) for Garbage and Trash Collection, U.S. City average, Bureau of Labor Statistics Series I.D. CUUROOOOSEHG02.
The CPI Adjustment shall be equal to the percentage change in the average 12-month CPI value ending June of the current year and compared to the average 12-month CPI value ending June of the prior year.
For example, the CPI used to set the 2026 rates shall be calculated as follows:
(Average CPI from July 1, 2024 to June 30, 2025) — (Average CPI from July 1, 2023 to June 30, 2024) Average CPI from July 1, 2023 to June 30, 2024
If the percentage change is below 2%, the applicable CPI Adjustment shall be 2%, with the difference in the amount below 2% being carried forward as a credit on the rates and applied to the subsequent year. If the percentage change is above 5%, the applicable CPI Adjustment shall be 5%, with the difference in the amount above 5% being carried forward and applied to the rates in subsequent years. Franchisee's prior year cost projections for Collection Services and Post - Collection Services shall be escalated by the resultant CPI Adjustment, rounded to the nearest dollar.
Franchisee's 2025 cost projection for Collection Services is $2,095,751 and Franchisee's 2025 cost projection for Post -Collection Services is $1,180,703. For 2026, by way of example, if the
Council Agenda 1-21-2025 11.A-16
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
percentage change in the average 12-month CPI value ending June 2026 compared to the average 12-month CPI value ending June of 2025 is 5%, then Franchisee's 2026 cost projection for Collection Services shall be $2,200,539 and Franchisee's 2026 cost projection for Post -Collection Services shall be $1,239,738. Likewise, if the percentage change in the average 12-month CPI value ending June 2026 compared to the average 12-month CPI value ending June of 2025 is 2%, then Franchisee's 2026 cost projection for Collection Services shall be $2,137,666 and Franchisee's 2026 cost projection for Post -Collection Services shall be $1,204,317.
Example Calculation for application of amounts above cap on CPI increases applied to Collection Services component of CPI Adjustment (noting that cap on CPI increases also applies to Post - Collection Services):
Year 1
Collection Services: $2,095,751
12-month average CPI index increase: 6.00%
$2,095,751 x 0+5.00%*) = $2,200,539
*5% cap on CPI increases. 1 % difference carried over to next year Year 2
Collection Services: $2,200,539
12-month average CPI index increase: 6.00%
$2,200,539 x 0+5.0%*) = $2,310,566
*5% cap on CPI increases. 1 % difference carried over to next year Year 3
Collection Services: $2,310,566
12-month average CPI index increase: 3.00%
$2,310,566 x 0+5.0%*) = $2,426,094
*3.00% + 1.00% carried forward from Year 1 + 1.00% carried forward from Year 2 The above is also demonstrated in Table 1, on the following page.
Council Agenda 1-21-2025 11.A-17
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
Table 1 — Example of CPI Cap and Carryforward
2025
2026
2027
2028
Collection Services
$2,095,751
$2,200,539
$2,310,566
$2,426,094
12-Month Average CPI
6.00%
6.00%
3.00%
CPI Adjustment (5% Cap)
5.00%
5.00%
5.00%
B. Calculation of Profit Allowance
The Index -Based Rate Adjustment methodology includes a component for Franchisee's fair and reasonable Profit Allowance. Profit Allowance is used for the purposes of calculating Index -Based Rate Adjustments and does not constitute a guarantee of profit to the Franchisee.
Franchisee's Profit Allowance for the purposes of Index -Based Rate Adjustments is calculated as a function of Franchisee's current year cost projection for Collection Services. For 2025, Franchisee's Profit Allowance is 9% of the cost projection for Collection Services and in 2026 and thereafter, Franchisee's Profit Allowance shall be 10% of the cost projection for Collection Services.
Franchisee's 2025 cost projection for Collection Services is $2,095,751; therefore, Franchisee's Profit Allowance for 2025 is $2,095,751 times 9%, rounded to the nearest dollar, equaling $188,618. Using the first example from Section 2.A above, if Franchisee's 2026 cost projection is $2,200,539 (corresponding to a 5% CPI Adjustment), Franchisee's 2026 Profit Allowance for the purposes of calculating Index -Based Rate Adjustment shall be $220,054. Likewise, and using the second example from Section 2.A above, if Franchisee's 2026 cost projection is $2,137,666 (corresponding to a 2% CPI Adjustment), Franchisee's 2026 Profit Allowance for the purposes of calculating Index -Based Rate Adjustment shall be $213,767.
C. Calculation of Franchise Fee
Franchisee pays the City a Franchise Fee of 10% of Franchisee's gross revenues received from Customers in the City. For the purposes of Index -Based Rate Adjustments, the Franchise Fee is calculated as 10% of Franchisee's annual Total Cost Projection, per Section 2.E below, rounded to the nearest dollar. For 2025, Franchisee's annual Total Cost Projection is $3,850,080, yielding Franchise Fee component of $385,008. Actual Franchise Fee payments made by Franchisee to City shall be calculated as a function of Franchisee's gross revenues received from Customers in the City and may differ from the amount used in calculating adjustments to the Maximum Service Rates.
D. Calculation of Annual Revenue Reconciliation
Starting with the 2027 Index -Based Rate Adjustment, the difference between the Franchisee's annual Total Cost Projection and the Franchisee's actual annual total billings to Customers in the City shall be included in the annual Index -Based Rate Adjustment as an Annual Revenue Reconciliation.
For example, for the 2027 Index -Based Rate Adjustment, the difference between Franchisee's 2025 Total Cost Projection and Franchisee's total 2025 billings to Customers in the City shall be included in the 2027 annual Total Cost Projection. By way of example, if Franchisee's 2025 total billings to Customers in the City is a shortfall of 1% (-$38,501) then $38,501 will be added to Franchisee's Total Cost Projection for 2027. Conversely, if Franchisee's 2025 total billings to Customers in the City is a surplus of 1% (+$35,501) then $38,501 will be subtracted from Franchisee's Total Cost Projection for 2027.
Table 2, on the following page, provides an example of the case in which there is a 1 % shortfall of
Council Agenda 1-21-2025 11.A-18
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
billed revenues in 2025, which is added to the Total Cost Projection in 2027. The table shows a continuation of 1 % shortfalls being added in 2028 and 2029 for example purposes only, and assumes the CPI adjustment to Collection Services, Post -Collection Services, and AB 939 Fee at the 5% cap. Table 2a on the following page, provides an example of the case in which there is a 1% surplus of billed revenues in 2025, which is added to the Total Cost Projection in 2027. The table shows a continuation of 1 % surpluses being added in 2028 and 2029 for example purposes only, and assumes the CPI adjustment to Collection Services, Post -Collection Services, and AB 939 Fee at the 5% cap.
Table 2 — Example Revenue Reconciliation of -1% Annually 2025
2026
2027
2028
2029
Collection Services
$2,095,751
$2,200,539
$2,310,566
$2,426,094
$2,547,399
Profit Allowance
$188,618
$220,054
$231,057
$242,609
$254,740
Post -Collection Services
$1,180,703
$1,239,738
$1,301,725
$1,366,811
$1,435,152
Franchise Fee
$385,008
$406,703
$431,316
$452,909
$475,602
Revenue Reconciliation Example
N/A
N/A
$38,501
$40,670
$43,132
Total Cost Projection
$3,850,080
$4,067,035
$4,313,165
$4,529,095
$4,756,025
Indexed Rate Adjustment
5.64%
6.05%
5.01%
5.01%
Council Agenda 1-21-2025 11.A-19
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
Table 2a — Example Revenue Reconciliation of +1% Annually 2025
2026
2027
2028
2029
Collection Services
$2,095,751
$2,200,539
$2,310,566
$2,426,094
$2,547,399
Profit Allowance
$188,618
$220,054
$231,057
$242,609
$254,740
Post -Collection Services
$1,180,703
$1,239,738
$1,301,725
$1,366,811
$1,435,152
Franchise Fee
$385,008
$406,703
$422,761
$443,872
$466,113
Revenue Reconciliation
N/A
N/A
$(38,501)
$(40,670)
$(42,276)
Example
Total Cost Projection
$3,850,080
$4,067,035
$4,227,608
$4,438,716
$4,661,127
Indexed Rate Adjustment
5.64%
3.95%
4.99%
5.01%
Significant, unexpected increases or decreases in revenue may be included or excluded from the Annual Revenue Reconciliation if deemed reasonable by the parties. As a one-time exercise, the Franchisee may request to review the entirety of its revenue earnings with the City as a check -in to evaluate alignment with its revenue forecast and conditions outlined in this exhibit. By no later than September 30, 2025, the Franchisee shall provide the City with documentation of actual to - date receipts or billings, accompanied by an analysis of all corresponding service trends. Upon receipt of these materials, the City and the Franchisee shall engage in a good -faith meet -and - confer process to discuss and determine an appropriate resolution, which may include a rate adjustment in January 2026 if necessary.
E. Calculation of Total Cost Projection
Franchisee's annual Total Cost Projection shall be the sum of the resultant values from Section 2.A through 2.D above. For 2025, the Total Cost Projection is $3,850,080. Table 3 below demonstrates the 2026 Total Cost Projection if the percentage change in the average 12-month CPI value ending June 2026 compared to the average 12-month CPI value ending June of 2025 is 5%. Table 4, on the following page, demonstrates the 2026 Total Cost Projection in the percentage change in the average 12-month CPI value ending June 2026 compared to the average 12-month CPI value ending June of 2025 is 2%.
Table 3 — 2026 Total Cost Projection at 5% CPI Value for 2026 2025
2026
Collection Services
$2,095,751
$2,200,539
Profit Allowance
$188,618
$220,054
Post -Collection Services
$1,180,703
$1,239,738
Franchise Fee
$385,008
$406,703
Total Cost Projection
$3,850,080
$4,067,035
Council Agenda 1-21-2025 11.A-20
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
Table 4 — 2026 Total Cost Projection at 2% CPI Value for 2026 2025
2026
Collection Services
$2,095,751
$2,137,666
Profit Allowance
$188,618
$213,767
Post -Collection Services
$1,180,703
$1,204,317
Franchise Fee
$385,008
$395,083
Total Cost Projection
$3,850,080
$3,950,834
F. Calculation of Annual Index -Based Rate Adjustments
The Index -Based Rate Adjustment shall be calculated as function of the Franchisee's forthcoming annual Total Cost Projection divided by the then current year Total Cost Projection, minus 100%, rounded to the nearest hundredth of a percent.
For example, taking the results shown in Table 3, on the prior page, the Index -Based Rate Adjustment for 2026 would be $4,067,035, divided by $3,850,080, minus 100%, yielding a 5.64% adjustment to the Maximum Service Rates effective January 1, 2026. Using the results of Table 4, above as an example, the Index -Based Rate Adjustment for 2026 would be $3,950,834, divided by $3,850,080, minus 100%, yielding a 2.62% adjustment to the Maximum Service Rates effective January 1, 2026.
This Index -Based Rate Adjustment calculation described herein shall repeat in 2027, 2028, and 2029, with the addition of the Annual Revenue Reconciliation amounts calculated pursuant to Section 2.D of this Exhibit. Rate adjustments shall be effective on January 1s' of each year (unless otherwise agreed to in writing by the parties) and any delay in rate change approval not caused by Franchisee will result in additional adjustments so that all required revenues are billed within the rate year. Any delay in rate change approval that is caused by Franchisee shall not result in additional adjustments corresponding with the delay in approval.
Section 3 Cost -Based Rate Adjustments
Franchisee or City shall have the right to request a Cost -Based Rate Adjustment effective January 1, 2030. Franchisee's request for Cost -Based Rate Adjustment in 2030 shall be requested in writing on or before January 15, 2029 and City's request for Cost -Based Rate Adjustment in 2030 shall be requested in writing on or before January 31, 2029. To the extent possible any City request for Cost -Based Rate Adjustment shall be coordinated with the other agencies in San Luis Obispo County that follow the rate adjustment methodology described in this Exhibit, with all such agencies opting to request Cost -Based Rate Adjustment effective in the same rate year
Upon request by either party for Cost -Based Rate Adjustment, Franchisee shall prepare and submit financial records and calculations to the City in accordance with this Section by April 30, 2029. City shall have the right to review Franchisee's financial records related to the Cost -Based Rate Adjustment and calculations of Cost -Based Rate Adjustment for mathematical accuracy and adherence to the terms and conditions of this Section. City shall prepare written findings regarding adjustments to the Franchisee's calculations of Cost -Based Rate Adjustment that are required for mathematical accuracy and adherence to the terms and conditions of this Exhibit on or before June 30, 2029. City shall make every effort to seek City Council authorization of Cost -Based Rate Adjustment prior to August 30, 2029. If neither party requests a Cost -Based Rate Adjustment in writing as specified above, then an Index -Based Rate
Council Agenda 1-21-2025 11.A-21
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
Adjustment shall be applied for adjustments to Maximum Service Rates effective January 1, 2030 and subject to the terms and conditions of Section 2 of this Exhibit.
Franchise or City shall have the right to request subsequent Cost -Based Rate Adjustments no more frequently than every five (5) years following the prior Cost -Based Rate Adjustment. For example, if a Cost -Based Rate Adjustment is requested as stipulated in above in January, 2029 (and effective January 1, 2030) then the next Cost -Based Rate Adjustment may not be requested by either party until January, 2034 (for effectiveness in 2035). The schedule from the following paragraph would also apply: Franchisee would prepare and submit financial records and calculations by April 30, 2034, City would prepare written findings regarding adjustments to Franchisee's calculations of Cost -Based Rate Adjustment that are required for mathematical accuracy and adherence to the terms and conditions of this Exhibit by June 30, 2034, and City would make every effort to seek City Council authorization of Cost -Based Rate Adjustment prior to August 30, 2034.
Notwithstanding the above, nothing shall prevent the parties from mutually agreeing to conduct Cost - Based Rate Adjustments in other years (i.e., years other than 2030 and 2035), provided that both parties agree in writing to waive the five (5) year limitation on Cost -Based Rate Adjustments expressed herein. If neither party requests Cost -Based Rate Adjustments in subsequent years pursuant to the five (5) year schedule described above, then Index -Based Rate Adjustments shall be applied for adjustments to Maximum Service Rates in such years, subject to the terms and conditions of Section 2 of this Exhibit.
Franchisee shall provide all financial information and supporting documentation required by this review in a format acceptable to City (or City's designated consultant) in a timely manner. Franchisee shall not require City (or City's designated consultant) to review any such documents at Franchisee's worksite but shall instead allow for all required information and supporting documentation to be provided to City (or its designated consultant) via physical mail, e-mail, or any other delivery method approved by City.
Cost -Based Rate Adjustments shall be prepared and calculated in accordance with the steps described below.
A. Projection of Collection Services and Post -Collection Service Costs Franchisee shall prepare financial records and calculations of Cost -Based Rate Adjustment using audited financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) for Franchisee's immediately preceding three (3) fiscal years. Such financial records and calculations shall include Franchisee's projected costs for Collection Services and Post -Collection Services as well as Franchisee's projected gross revenues at then -current Maximum Service Rates for the forthcoming year (e.g., 2030 at the earliest).
Franchisee shall promptly assemble, provide, and submit such information that is reasonably necessary to support the assumptions made by the Franchisee with regard to the assumptions underlying the forecast. Upon submission of such information, the City holds the ability to make appropriate changes for non -allowable costs, large unsupported variances in cost projections including but limited to corporate transactions and allocations, large variances in inter -company and related party transactions and allocations, unjustifiable variances in any cost category, non- conformance with agreed upon depreciation terms, non-conformance agreed upon profit allowances, and other customary and reasonable adjustments as detailed in the Agreement. Cost projections for Collection Services and Post -Collection Services prepared by Franchisee must be justifiable, supportable with financial information, and provide accountability for all expenditures. In preparing such cost projections, Franchisee shall assemble and submit its forecasts of:
a. Revenues at current Maximum Service Rates for the then -current year, including delineation of revenues by sector (single-family residential vs. commercial and multi -family) and with details of the number of subscribers by type within each sector. b. Projected costs of Collection Services for the then -current year and the forthcoming year, with comparison to and explanation of any variances to actual costs for Collection Services in the prior three (3) fiscal years. Costs for Collection Services include labor, corporate
Council Agenda 1-21-2025 11.A-22
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
overhead, depreciation (with rolling stock at 10-year depreciation lifespan), and general and administrative costs and shall be delineated as per the primary cost categories included in Franchisee's Audited Financial Statements. Franchisee must provide documentation of, and explanation for, material variances in any cost category. Projected costs for the forthcoming year shall be based on Franchisee's actual costs per Audited Financial Statements and escalated by the CPI Adjustment described in Section 2.A of this Exhibit, with the exception that Franchisee may adjust projections to account for other documentable changes in costs. Corporate overhead costs shall be limited to be less than 4% of Franchisee's Total Cost Projection for the forthcoming year and Franchisee must provide documentation and justification for any amounts of Corporate Overhead above 3% of Franchisee's Total Cost Projection for the forthcoming year. City retains the right to make appropriate adjustments to cost projections to cost categories for which Franchisee does not or cannot provide adequate documentation and explanation of material variances compared to prior years.
c. Projected costs of Post -Collection Services for the then -current year and the forthcoming year, with comparison to and explanation of any variances to actual costs for Collection Services in the prior three (3) fiscal years. Costs for Post -Collection Services include landfill disposal, organics processing, recyclables processing and marketing, related -party transportation, and related -party rent and shall be delineated as per the primary cost categories included in Franchisee's Audited Financial Statements. Franchisee must provide documentation of, and explanation for, material variances in any cost category.
Projected costs for the forthcoming year shall be based on Franchisee's actual costs per Audited Financial Statements and escalated by the CPI Adjustment described in Section
2.A of this Exhibit, with the exception that Franchisee may adjust projections to account for other documentable changes in costs. City retains the right to make appropriate adjustments to cost projections to cost categories for which Franchisee does not or cannot provide adequate documentation and explanation of material variances compared to prior years.
d. Franchisee shall not include any non -allowable costs in its cost projections for Collection Services or Post -Collection Services. Non -allowable costs include but are not limited to:
i. Entertainment and non -work related travel expenses, unless authorized in advance by City.
ii. Advertising for services not within the scope of this Agreement or outside of the service area of the City of Pismo Beach.
iii. Fines or penalties of any nature.
iv. Liquidated damages assessed under this Agreement.
v. Federal or State income taxes.
vi. Profit sharing payments not related to an IRS approved pension program. vii. Charitable or political donations.
viii. Attorneys' fees and other expenses incurred by Franchisee in any court proceeding in which City and Franchisee are adverse parties, unless Franchisee is the prevailing party in said proceedings.
ix. Attorneys' fees and other expenses incurred by Franchisee in any court proceeding in which Franchisee's own negligence, violation of law or regulation, or other wrongdoing, is in issue and occasions part of the attorneys' fees and expenses claimed, provided, however, such attorneys' fees will be allowed to the extent Franchisee can demonstrate they were reasonable and necessary and a cost of doing business, and were not the result of any intentional or willful
Council Agenda 1-21-2025 11.A-23
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
misconduct by Franchisee or its employees; and attorneys' fees and expenses incurred by Franchisee in a court proceeding in which the legal theory or statute providing a basis of liability against Franchisee also provides for separate strict liability for City arising from the action of its citizens or ratepayers (such as in a CERCLA lawsuit).
x. Payments to related party entities for products or services (other than lease expense, calculated as provided below), in excess of the fair market value for those products or services. For purposes of this Agreement, related party expenses are those resulting from transactions between Franchisee and another company (companies) that has (have) common ownership or management control. e. Franchisee's audited financial statements, and any other documentation as deemed necessary by the City, will be reviewed to determine Franchisee's cost projections for each of the foregoing categories during the year involved. City will use the financial statements to determine that costs have actually been incurred and have been assigned to the appropriate category.
f. City may adjust the actual costs in two ways: (1) to exclude any non -allowable costs, set out below, and (2) to exclude and/or reduce any costs that were actually incurred but which are not reasonable and necessary in keeping with industry standard best practices.
B. Calculation of Profit Allowance
Franchisee's Profit Allowance shall be 10% of the cost projection for Collection Services, rounded to the nearest dollar.
C. Calculation of Franchise Fee
Calculation of Franchise Fee shall be calculated in accordance with Section 2.C, above, for the applicable year as appropriate.
D. Calculation of Annual Revenue Reconciliation
Calculation of Annual Revenue Reconciliation shall be calculated in accordance with Section 2.D, above, for the applicable year as appropriate.
E. Calculation of Total Cost Projection
Calculation of Total Cost Projection shall be calculated in accordance with Section 2.E, above, for the applicable year as appropriate.
F. Calculation of Cost -Based Rate Adjustment
The Cost -Based Rate Adjustment shall be the calculated as function of the Franchisee's forthcoming annual Total Cost Projection divided by the then current year Total Cost Projection, minus 100%, rounded to the nearest hundredth of a percent. This is the same calculation described in Section 21, above. The resultant percentage shall be applied to the then -current Maximum Service Rates and be effective January 1 of the forthcoming year.
Rate adjustments shall be effective on January 1st of each year (unless otherwise agreed to in writing by the parties) and any delay in rate change approval not caused by Franchisee will result in additional adjustments so that all required revenues are billed within the rate year. Any delay in rate change approval that is caused by Franchisee shall not result in additional adjustments corresponding with the delay in approval.
Section 4 Annual Audited Financial Statements
Franchisee shall annually prepare Audited Financial Statements in accordance with Generally Accepted Accounting Principles (GAAP) for its operations in the San Luis Obispo County region. Franchisee shall provide City with copies of the annual Audited Financial Statements upon request and with any Cost -
Council Agenda 1-21-2025 11.A-24
Attachment 2
Exhibit E
Annual Rate Adjustment Methodology
Based Rate Adjustment submittal.
Section 5 Extraordinary Adjustments
Except as provided herein, Franchisee may not request adjustments to Maximum Service Rates in years during which Index -Based Rate Adjustments are scheduled to be applied and must follow the timeline described in Section 3. Notwithstanding the above, Franchisee may request extraordinary adjustments to Maximum Service Rates due to changes in law affecting collection operations, including for compliance with the California Air Resource Board's (CARBS's) Advanced Clean Fleet (ACF) electrification mandate.
The City may, but is not obligated to, consider requests for extraordinary adjustment to Maximum Service Rates due to changes in law affecting Post -Collection Services. Requests for extraordinary changes in Maximum Service Rates are subject to good faith negotiations between City and Franchisee.
In the event of any Change in Scope or Change in Law (each as described below) that results in an material increase or decrease in Franchisee's costs or revenues, in the event of an Extraordinary Cost Increase (as defined below), or in the event of any Change in Fees (as described below), an appropriate adjustment will be made to the Maximum Service Rates in order to compensate, to the maximum extent possible, for such increase or decrease in costs, revenues or Fees, commencing from the Effective Date(s) such increase or decrease first occurs. Any adjustment to Maximum Service Rates due to a Change in Scope, a Change in Law or an Extraordinary Cost Increase shall be in the reasonable discretion of the City.
A. "Change in Scope" shall mean any change in the services provided by the Franchisee under the Agreement whether proposed by the Franchisee or by the City.
B. "Change in Law" shall mean the enactment, adoption, promulgation, issuance, modification or written change in any law, regulation, order or judgment of any governmental body that affects the Franchisee's performance of services under the Agreement including, without limitation, the issuance of final regulations under existing laws.
C. "Change in Fees" shall mean any change in franchise fees, vehicle impact fees and other fees charged to the Franchisee by the City connection with the services provided by the Franchisee under the Agreement the cancellation of any existing fees, and the adoption of any new fees.
D. "Extraordinary Cost Increase" shall mean a substantial increase in the Franchisee's operating or capital costs or expenses that is outside of the Franchisee's control but not due to a Change in Scope or Change in Law.
E. "Effective Date" shall mean the date in which the Franchisee notifies the City of the reasons for the cost estimate associated with a Change in Law, Change in Fees, and/or Extraordinary Cost Increase or when the Franchisee begins incurring costs for the Change in Law, Change in Fees, or Extraordinary Cost Increase, whichever is later.
In the case of a Change in Scope, a Change in Law or an Extraordinary Cost Increase, the Franchisee shall provide the City with projected operational, cost and revenue data reflecting the entire financial effect of such Change. The City reserves the right to require that the Franchisee supply any additional operational, cost and revenue data, or any other information it may reasonably need, to ascertain the appropriate financial impact of the Change and any necessary adjustment to Maximum Service resulting from such Change.
Extraordinary adjustments to Maximum Service Rates for a qualifying Change in Scope or Change in Law, for a Change in Fees, or for an Extraordinary Cost Increase shall take effect as of the beginning of the next year and will include all impacts of the extraordinary adjustment from the Effective Date of the impact; provided, however, that, in the case of any Change in Fees charged by the City, the Extraordinary adjustment shall take effect as of the Effective Date of such Change in Fees. The underlying service, cost, revenue or Fee changes supporting any rate adjustment under this Section 5 will be added to the appropriate category under Sections 2 and 3 above for purposes of future cost projections.
Council Agenda 1-21-2025 11.A-25
Attachment 2
Exhibit E
REPORT
City of San Luis Obispo and Participating Agencies
IZ3
Submitted electronically: November 1, 2024
CONSULTING GROUP, INC.
RESOURCES - RESPECT- RESPONSIBILITY
Council Agenda 1-21-2025 11.A-26
Attachment 2
Z3CONSULTING CROUP, INC.
RESOURCES- RESPECT - RESPONSIBILITY
November 1, 2024
Ms. Meg Buckingham
Solid Waste and Recycling Coordinator
Public Utilities
879 Morro, San Luis Obispo, CA 93401
submitted via email: [email protected]
SUBJECT: New Solid Waste Rate Adjustment Methodology and 2025 Rates Dear Ms. Buckingham and Participating Agencies,
R3 Consulting Group, Inc. (R3) was engaged by the City of San Luis Obispo (City) to provide solid waste consulting services via two engagements supporting the City's negotiations of a new solid waste services agreement with Waste Connections, the solid waste hauler. R3 was originally engaged by the City to work in collaboration with Los Osos Community Services District and Waste Connections to update the methodology for annual adjustments to the solid waste rates charged by Waste Connections. The key objectives for updating the rate adjustment methodology were to enhance rate stability, predictability, fairness, transparency, ease of administration, and cost- effectiveness.
As that engagement proceeded, eight other agencies in San Luis Obispo County (the City of Arroyo Grande, the City of Grover Beach, the City of Pismo Beach, Avila Beach Community Services District, Cambria Community Services District, Cayucos Sanitary District, Nipomo Community Services District, and Oceano Community Services District — altogether "Participating Agencies" or "Agencies") were included as stakeholder participants in the development of new rate adjustment methodology. With the inclusion of these additional Agencies, objectives for the engagement were updated to include regional scale applicability of the new rate adjustment methodology. R3 was then engaged by the City to review Waste Connections' rate adjustment requests for the 2025 rate year on behalf of all ten Agencies with the objective of determining 2025 solid waste rates that would provide an appropriate starting point for a new rate adjustment methodology starting in 2026.
The City of San Luis Obispo served as the lead contracting agency for both engagements, providing primary oversight and direction of R3's work. Input and feedback were also sought from the other nine Agencies, and the results reflect their stakeholder input. Ultimately, the outcomes of both engagements are the conclusion of good faith contract negotiations between the City and Waste Connections. In summary, the City and Waste Connections have tentatively agreed to updated terms and conditions for annual rate adjustment which fulfill key objectives while also securing enhanced services that will protect low income households, prevent illegal dumping, and clean solid waste collection containers. The new rate adjustment methodology and enhanced services also resulted in updated adjustments to solid waste rates for 2025.
The City intends to recommend a new agreement with Waste Connections to the City Council that will include the new rate adjustment methodology and enhanced services along with the 2025 adjustments to solid waste rates. In keeping with the objective for the results to be applicable on a regional scale, Waste Connections is willing to offer the new rate adjustment methodology and 1512 Eureka Road, Suite 220, Roseville, CA 95661 1 p 916.782.7821 1 f 916.782.7824 1 www.r3cgi.com Council Agenda 1-21-2025 11.A-27
Attachment 2
select enhanced services to the other nine Agencies at the updated 2025 adjustments to solid waste rates.
R3 would like to recognize that this has been a significant undertaking, and we'd like to thank the City of San Luis Obispo, Waste Connections, Los Osos Community Services District, and Participating Agencies for your involvement in providing feedback during this process. In closing, R3 recommends City and stakeholder consideration of the revised 2025 rates and the new rate adjustment methodology as a means of achieving shared rate fairness, stability, and predictability objectives. Here's what Waste Connections has shared regarding the outcomes:
"San Luis Garbage (SLG) had the opportunity to negotiate with the City of San Luis Obispo on the re -write of the 1994 rate -making manual. The goal of this endeavor was to simplify and streamline the rate -making process for all parties and provide an improved model going forward for potential refuse collection rate changes. The process included a considerable amount of discussion and analysis and although arduous at times, SLG feels the negotiations were performed in good faith, were collaborative in nature and carried out with mutual respect. In addition to updating the rate -making methodology, both parties took the opportunity to establish some new service enhancements that will discourage illegal dumping, provide cart cleaning exchanges, and offer rate relief for low-income customers. SLG believes the outcome of the negotiation has provided a much -improved rate -review process for the City of San Luis Obispo and other cities currently under the old rate -making methodology which will ultimately allow for an easier path to fair and reasonable rates for all customers. " We appreciate the opportunity to be of service to the City and would like to thank the City and the Participating Agencies for their involvement and feedback. We would also like to recognize Waste Connections staff for being communicative and responsive to requests for information during the process.
Sincerely,
Garth Schultz I Principal
R3 Consulting Group, Inc.
510.292.0853 1 [email protected]
1512 Eureka Road, Suite 220, Roseville, CA 95661 1 p 916.782.7821 1 f 916.782.7824 1 www.r3cgi.com Council Agenda 1-21-2025
11.A-28
Attachment 2
TABLE OF CONTENTS
1. Executive Summary
page 1
2. Background
page 4 6=
3. New Solid Waste Rate Adjustment
Methodology and 2025 Rates
page 10
Attachments
1 Summary of Original 2025 Base Year Rate Adjustments
2 Revised 2025 Rate Adjustments
3 CPI-U for Garbage and Trash
4 Example Rate Calculations for 2026 through 2029
City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates TOC Council Agenda 1-21-2025 11.A-29
Attachment 2
1. EXECUTIVE SUMMARY
New Rate Adjustment Methodology
The City of San Luis Obispo, in its capacity as the lead agency on the solid waste rate adjustment methodology update process, and in partnership with Los Osos Community Services District and Waste Connections, completed negotiations and arrived at tentative agreement with Waste Connections regarding the terms and conditions of a new methodology. The outcome was the result of extensive good faith negotiations between the City and Waste Connections, with due consideration to input provided by other public agency stakeholders.
Pending City Council approvals, the new methodology will replace the 1994 Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates (1994 Rate Manual) and will regulate annual rate adjustments for the City's solid waste rates starting in 2026.
The new methodology fulfills key objectives established by the City and Waste Connections, including rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness.
Additionally, in response to requests by other Agencies that contract with Waste Connections in San Luis Obispo County, the new methodology can be applied on a regional -scale and is available as recommended alternative to the 1994 Rate Adjustment Manual for those Agencies.
The key features of the new methodology include:
)) CPI Adjustments: Starting in 2026, rate adjustments will be based on the Garbage and Trash CPI, with a floor of 2% and a cap of 5%. Amounts under 2% or over 5% will carry forward. The CPI adjustment will apply to Waste Connections' collection and post -collection cost centers.
Revenue Balancing Mechanism: Starting in 2027, adjustments to rates will account for shortfalls or surpluses in Waste Connections' actual revenues compared to projected revenues from prior years. For example, if Waste Connections' 2025 revenues exceed projections, the amount of surplus revenues will be credited to the rates in 2027 (and vice versa), achieving fairness in compensation and rates for the company and for ratepayers. Such adjustments would take place annually and will be independent of the CPI cap and floor noted above (there is no cap on these amounts).
Less Frequent Cost -Based Adjustments: Currently, solid waste rates are adjusted based on the 1994 Rate Adjustment Manual every three years on Waste Connections' costs. Via the new methodology, cost -based adjustments would occur a maximum of every five years, and only if requested by Waste Connections or the City. The first opportunity for a cost -based adjustment will be for the 2030 rate year. If neither Waste Connections nor the City request a cost -based adjustment, then the CPI adjustment approach will be applied. Cost -based adjustments will be based on Waste Connections' consolidated audited financial statements for the region.
Timeframes for cost -based adjustment application and review process will be ample, such that the City will have sufficient time for review and approval processes and such that the potential for delay in implementation is minimized. These timeframes will be delineated in the forthcoming amendment to the agreement with Waste Connections.
)) Updated Depreciation Lifespan for Trucks: The 1994 Rate Manual set a 7-year depreciation schedule for solid waste collection trucks. Modern solid waste collection trucks have a 10-year lifespan, and the depreciation schedule was adjusted accordingly. )) Updated Profit Allowance: The 2025 rate adjustment will include a 9% profit allowance of projected collection costs and in 2026 and thereafter the profit allowance will be 10%. The updated profit allowance is in -keeping with industry standard ranges for solid waste services. For City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates 1 of 19 Council Agenda 1-21-2025 11.A-30
Attachment 2
Executive Summary
context, the 2025 profit allowance is approximately 5% of revenues and we estimate that the 2026 profit allowance will be approximately 5.5% of revenues. Profit will not be allowed on post - collection costs.
Removed Limitation on Corporate Overhead: The 1994 Rate Manual placed a limitation on corporate overhead costs. Today, corporate overhead costs fund legal, tax, payroll, human resources, engineering, compliance, IT, training and recruiting programs. The City and Waste Connections agreed to remove the prior limitation in order to fund these services. In the near - term, compensation to Waste Connections for corporate overhead will be limited by the CPI adjustment noted above. Cost -based adjustments to corporate overhead are possible in 2030, and will be subject to review, justification, and potential limitation at that time.
Extraordinary Adjustments: The California Air Resources Board (CARB) Advanced Clean Fleets (ACF) regulation is requiring all solid waste collection trucks to have zero emissions by 2042. This includes a phased in plan to get the percentage of the fleet to be zero emission vehicle (ZEV) with 10% by 2030, 25% by 2033, 50% by 2036,75% by 2039 and 100% by 2042.
During CPI Adjustment years, Waste Connections may request extraordinary rate adjustments due to changes in law affecting collection operations, including for compliance with CARB's ACF zero emission mandate (which may necessitate change to depreciation schedules). The City may, but is not obligated to, consider requests for extraordinary rate adjustments due to changes in law affecting post -collection operations. Requests for extraordinary change are subject to good faith negotiations between City and Waste Connections.
New Service Enhancements
During negotiations, the City and Waste Connections also took the opportunity to establish new service enhancements that will discourage illegal dumping, provide cart cleaning exchanges, and offer rate relief for low-income customers. The below service enhancements are available to the other Agencies that approve the new rate adjustment methodology in association with adjusted 2025 solid waste rates:
)) Customer Assistance Program: 20% low-income discount provided to residential customers using 32-gallon cart service, using existing jurisdictional practices on low-income relief for their offered utility type services with evidence of qualifying financial hardship. )) Free Bulky Waste Collections: Collection of a bulky waste item twice annually from residential accounts at no separate cost, via clean-up week or voucher program depending on existing program.
)) Annual Cart Exchange: Once annual exchange of a residential solid waste, recycling, or organics cart per customer account.
2025 Rate Adjustments
As a result of the above, Waste Connections' 2025 rate adjustment request was revised from a 9.29% increase to a 9.89% increase in solid waste rates, effective January 1, 2025 (and prior to other rate structure adjustments that the City and Waste Connections may enact). When the new rate methodology changes and service enhancements are equally applied to the other regional Agencies, the results are as shown in Table 1 on the following page. Additional details are included in Section 3 of this report.
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Attachment 2
Table 1: 2025 Rate Adjustments
Agency
City of San Luis Obispo
Original
9.29%
Revised
9.89%
City of Arroyo Grande
3.97%
4.92%
Los Osos CSD
12.47%
13.18%
City of Pismo Beach
3.97%
4.82%
Cambria CSD
12.78%
12.59%
City of Grover Beach
3.97%
5.02%
Nipomo CSD
3.23%
5.04%
Oceano CSD
3.76%
4.98%
Cayucos SD
12.47%
14.32%
Avila Beach CSD
3.97%
4.60%
Executive Summary
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Attachment 2
2. BAC KG RO U N D
1994 Rate Manual
The 1994 Rate Manual is a 120-page document that provides step-by-step directives regarding annual adjustments to solid waste rates in the City. Though the 1994 Rate Manual specifically references the City of San Luis Obispo, other agencies in San Luis Obispo County (including the nine Agencies referenced in this report) also follow the 1994 Rate Manual for annual adjustments to solid waste rates.
The 1994 Rate Manual established a three-year cycle for adjustments to solid waste rates. The first year of each three-year cycle (called a "base year") adjusted rates based on the documented costs of providing solid waste services. In the second and third years, solid waste rates were adjusted in accordance with external indicators, such as the Consumer Price Index (CPI).
While the 1994 Rate Manual was an appropriate approach to annually adjusting solid waste rates at the time, changing regulatory conditions and modern best practices in solid waste rate setting indicate that the prior approach has outlived its usefulness. In particular, cost -based adjustments on a fixed three-year cycle are no longer the industry norm. Most solid waste rate adjustment methodologies in California today either do not include regular cost -based adjustments or do so less frequently. When allowed, cost -based adjustments are typically the result of extraordinary changes in cost due to factors like changes in law or other uncontrollable factors (such as China's National Sword Policy in 2017 and the COVID pandemic in 2020). Additionally, step-by-step instructions and timelines in the 1994 Rate Manual are outdated and do not contemplate current approaches to public noticing, public hearings, and review timelines for authorizing rate adjustments.
RFQ for New Rate Adjustment Methodology
Recognizing the limitations of the 1994 Rate Manual, the City and Los Osos Community Services District issued a request for quotes (RFQ) in early 2024 seeking a consultant to develop a new rate adjustment methodology. Pursuant to the RFQ process, R3 was awarded an agreement to provide support in developing a new rate adjustment methodology.
Rate Adjustment History
Rate adjustments experienced by the City and participating Agencies have varied significantly in the prior ten years from 2015 through 2014, as shown in Table 2, on the following page. As shown in the table, rate adjustments by agency have varied from 0% (most Agencies in 2015) to over 20% (most Agencies in 2022).
There are important reasons for these variances, primarily related to the unfunded State mandates of SIB 1383 (Short-lived Climate Pollutants Act) which required all agencies in California to implement programs to recover and recycle organic waste to reduce methane emissions from landfills. While rate adjustments were necessary to fund the required SIB 1383 programs, the combination of new costs with the three-year cost -based adjustment approach in the 1994 Rate Manual resulted in rate adjustment spikes in 2016, 2019, and 2022. Overall, across the Agencies, the average annual rate adjustment from 2015 through 2024 has been 6.76%.
One important objective of the new rate adjustment methodology is to minimize the recurrence of such spikes by reducing the frequency of cost -based rate adjustments. From R3's experience implanting new rate methodologies with other clients, the result has been stable and predictable annual rate adjustments.
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Attachment 2
Background
Table 2: 2015 - 2024 Rate Adjustments by Agency
&2Lncy
2015
20IMMI
2018
20191r2'020
2021
2022
2023
2024
City of San Luis
0.00%
5.25%
1.00%
1.60%
13.70%
1.70%
0.70%
17.75%
9.10%
3.00%
Obispo
City of Arroyo
0.00%
3.25%
1.00%
1.60%
10.06%
1.70%
0.70%
22.19%
9.10%
3.00%
Grande
Los OsmCSD
2.00%
10.37%
1.00%
1.60%
25.74%
1.70%
0.70%
41.87%
7.70%
2.70%
City of Pismo Beach
0.00%
3.25%
1.00%
1.60%
10.06%
1.70%
0.70%
22.19%
9.10%
3.00%
Cambria CSD
1.92%
9.93%
1.00%
1.60%
25.32%
1.70%
0.70%
41.50%
9.10%
3.00%
City of Grover
0.00%
3.25%
1.00%
1.60%
10.06%
1.70%
0.70%
22.19%
9.10%
3.00%
Beach
NipomoCSD
0.00%
0.00%
1.00%
1.60%
15.08%
1.70%
0.70%
21.27%
9.10%
3.00%
Ocean CSD
0.00%
3.25%
1.00%
1.60%
10.06%
1.70%
0.70%
21.03%
9.10%
3.00%
CayucosSD
2.00%
27.39%
1.00%
1.60%
26.43%
1.70%
0.70%
43.30%
9.10%
3.00%
Avila Beach CM
0.00%
3.25%
1.00%
1.60%
10.06%
1.70%
0.70%
22.19%
9.10%
3.00%
Financial Statement History
There are three Waste Connections business units serving the ten participating Agencies (San Luis Garbage, Mission Country Disposal, and South County Sanitary Service). Each business unit prepares annual audited financial statements which are used as the basis for base year rate applications to the Agencies. R3 analyzed Waste Connections' audited financial statements for the six years from 2018 through 2023 to evaluate profit achievement, with the results summarized in Table 3, below. Table 3 also includes estimated profit achievement in 2024 (still underway) and for 2025 (prior to 2025 rate adjustments).
Table 3: 2018 - 2023 Profit Achievement
00"W"N" 1.
San Luis Garbage
2018
-13.84%
2019
-16.84%
2020
-9.66%
2021
-3.41 %
2022
12.47%
2023 A,
6.30%
2024
-0.64%
20251
-6.62%
Mission Country Disposal
-19.26%
-30.77%
-9.28%
-19.84%
-10.21 %
2.47%
-4.09%
-8.95%
South County Sanitary Service
5.38%
1.40%
0.25%
-5.56%
5.93%
15.85%
8.43%
2.38%
Overall
-7.22%
-12.45%
-5.22%
-7.88%
4.66%
9.67%
2.61 %
-3.16%
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Attachment 2
Background
As shown in Table 3, in total across all three business units, Waste Connections operated without any net income between 2018 and 2021, with net positive profitability being achieved in 2022 and 2023. Profit achievement varied by business unit, with South County Sanitary Service consistently experiencing greater profit achievement and Mission Country Disposal consistently experiencing lesser or no profit achievement. This is one of the key reasons that rate adjustments for the Agencies served by Mission Country Disposal (Cambria Community Services District, Cayucos Sanitary District, and Los Osos Community Services District) were higher than the other Agencies in 2019 and 2022.
Table 3 also shows that projected profit achievement in 2024 will be lower than 2023, which is primarily the result of Waste Connections incurring increased landfill disposal costs (provided by a related party) and increased organics processing costs (provided by a non-affiliated third party processor). Projected profit achievement for 2025 - which, importantly, is prior to 2025 adjustments to solid waste rates - demonstrates no net profit for San Luis Garbage and Mission County Disposal and low net income for South County Sanitary Service. Overall, without adjustments to rates, Waste Connections service to the Agencies in 2025 will not yield net income.
It should be noted that Waste Connections allocates costs between business units based on allocation metrics that include vehicle operating hours, number of solid waste containers, and number of customer accounts. While such metrics are useful means of allocating costs, they do not necessarily represent the exact cost of providing service within a given business unit.
Rate Comparison
R3 compared current 2024 solid waste rates for the Agencies to rates in other jurisdictions in San Luis Obispo County, Santa Barbara County, and Monterey County. The results are shown in Table 4, below and on the following page, and are organized in ascending order by 32-gallon monthly rate (common residential subscription level).
Table 4: Regional Comparison of Monthly Rates
: i��
C
Oceano CSD
!7$14.74
i
N/A
=
$20.37
$29.31
$57.39
- qlell�
$128.75
San Luis Obispo
$23.53
$47.06
$70.59
$185.21
Pismo Beach
N/A
$23.76
$47.56
$71.33
$ 666.02
Grover Beach
N/A
$24.23
$32.74
$41.23
$147.95
Arroyo Grande
N/A
$27.33
$35.52
$43.73
$167.65
Nipomo CSD
N/A
$27.57
$39.52
$51.81
$136.62
Avila Beach CSD
N/A
$28.31
$46.78
$65.24
$177.68
Santa Barbara County Zone 4 Lompoc
N/A
$31.41
$36.13
$40.70
$179.98
Cayucos SD
N/A
$32.60
$38.52
$44.48
$184.32
Santa Barbara County Zone 5
N/A
$33.03
$37.84
$42.46
$192.87
City of Atascadero
N/A
$33.67
$52.80
$66.35
$172.24
San Miguel
N/A
$34.13
$53.80
$72.88
$124.12
Santa Barbara County Zone 4 Santa Ynez
N/A
$34.33
$42.62
$50.77
$254.11
City of Morro Bay
$22.21
$35.54
$71.07
$106.63
$265.30
Solvang
N/A
$36.28
$45.20
$54.69
$256.55
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Attachment 2
Background
Agencyic
M in
Goleta
N/A
$37.39
MEMEEI�
$41.88
$48.35
$240.10
Templeton
N/A
$38.73
$54.63
$60.41
$149.58
Los Osos CSD
$27.74
$39.45
$60.57
$64.96
$228.72
Buellton
N/A
$40.51
$48.40
$56.38
$281.13
Cambria CSD
N/A
$41.52
$83.03
$124.55
$201.94
King City
$32.43
$42.83
$53.68
$63.52
$288.00
Santa Barbara County Zone 2
N/A
$43.25
$54.66
$65.92
$259.61
City of Paso Robles
$38.15
$43.32
$57.42
$63.59
$188.36
Santa Barbara County Zone 3
N/A
$45.22
$51.52
$57.75
$215.72
MRWMD
$38.28
$46.54
$72.92
$91.20
$277.20
City of Santa Barbara
N/A
$48.26
$59.82
$71.38
$277.66
WM Area (Formerly Mid -State)
N/A
$48.72
$71.31
$93.84
$214.46
Santa Barbara County Zone 1
N/A
$56.60
$62.86
$69.25
$256.74
Santa Maria
N/A
N/A
$38.74
$47.87
$166.72
Table 4 demonstrates that solid waste rates for the City and other Participating Agencies compare favorably to others in the region. Charts 1 through 4, below and on the following pages, show the information from Table 4 in graphical format.
Chart 1: Regional Comparison of Monthly 32-gallon Cart Rates $50
$40
$30
$20
$10
$0
COcnmm
CO ° U° U En U U O o m_ c U 0Y U rr m U ca
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Chart 1, which is organized in ascending order of 32-gallon monthly rate, demonstrates that the rates for 32-gallon monthly service (the most subscribed residential service level) for all Participating Agencies City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates 7 of 19 Council Agenda 1-21-2025 11.A-36
Attachment 2
Background
other than Cambria Community Services District,Ca uc sSaMb7 District,andL sOs sCommu6\ Services District are he lowest M the region. Chart 2show how 6 gm en monthly rate compare.
Chart 2 Regional Comparison of Monthly 6 - m b n Cart Rates $ O
$ 0
$ O
$ O
$ O
$30
$ O
$10
$
c o== m=_ _ e 6 ® 0) a� c c c _@ n
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4 Chart 3 Regional Comparison of Monthly 9e- m bn Cart Rates c o== 0 0_ c 0 ®= a C c C c m c@ °
® \ % % c m m § § f 3 § M % ° $ / = / b § / § f \ § k
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/ / / / $ 2 /
4 City of &nb§Obispo IG«alew U ele�aus e A!%+yyea33 Rate a§m � c Council Agenda 1- 1- 025 11.A- 7
Attachment 2
Background
Charts 3 and 4 keep the same ordering as Charts 1 and 2 and show how large residential 96-gallon service and commercial two (2) cubic yard bin service compare with the region. Overall, while exceptions exist, rates for solid waste service for the City and the Participating Agencies are among the lowest in the region, including San Luis Obispo County, Santa Barbara County, and Monterey County.
Chart 4: Regional Comparison of Monthly 2 Cubic Yard Rates $350
$300
$250
$200
$150
$100
$50
$0
p o m p p p y o >, 0) m c p c p p 2 6� m
m cn U
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Attachment 2
3. NEW RATE ADJUSTMENT METHODOLOGY
AND 2025 RATES
2025 Base Year Rate Adjustments
Waste Connections submitted base year rate applications to the Agencies for rates effective January 1, 2025.' Those rate applications were prepared in accordance with the 1994 Rate Manual, with modification for an effectiveness date of January 1, 2025, instead of the October 1, 2024 date that otherwise would have been the effective date given strict adherence to the 1994 Rate Manual. In simple terms, the applications project future 2025 costs for providing solid waste services based on the actual costs of providing services as follows:
)) Actual results for the most recently completed year (2023), which are based on the audited financial statements.
)) Projected results for the current year (2024), which are to be based on year-to-date information available at the time the application is submitted.
)) Projected results for the next year (2025).
Adjustments to solid waste rates are then calculated based on the projected 2025 revenue requirement, which is the sum of:
) Allowed costs.
)) Allowable operating profit.
)) Pass through costs.
In reviewing the 2025 base year rate applications for the Agencies, R3:
)) Checked calculations for mathematical accuracy and consistency. )) Tied projected costs back to the 2023 audited financial statements. )) Evaluated the root causes of extraordinary changes in cost for landfilling and organics processing.
)) Reviewed 2024 revenues year to date to determine accuracy of projected revenues at current rates for 2025.
)) Proposed adjustments to solid waste collection vehicle depreciation lifetimes.
A summary of Waste Connections' original 2025 base year rate adjustments per the applications submitted to the Agencies is included as Attachment 1.
It should be noted that Waste Connections' base year rate applications are made at the business unit level (San Luis Garbage, Mission Country Disposal, and South County Sanitary Service) with no allocation of projected costs to individual Agencies served by those business units. Rather, the base year rate adjustment applications use total costs and revenues for those business units to calculate rate adjustments for the individual Agencies. For the purposes of our analysis, and as documented in Attachment 1, R3 allocated projected expenses by agency in accordance with proportion of revenues — this allocation approach is what the base year rate application achieve in practice, and the result is an exact match to the rate adjustment calculations included in the base year rate applications for each agency.
Authorization of the January 1, 2025 rate adjustments are expected to occur after that date. Waste Connections will prorate adjustment amounts on customer bills to account for the timing difference.
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Attachment 2
New Rate Adjustment Methodology and 2025 Rates
R3 thoroughly reviewed the figures included in the 2025 rate adjustment calculations, as well as supporting documentation requested of Waste Connections during the review process and found that Waste Connections' rate applications were accurate and in accordance with the 1994 Rate Manual. The rate adjustments shown in Table 5 on the following page are the correct rate adjustments per the 1994 Rate Manual and are the default rate adjustments effective January 1, 2025, if the City and the Participating Agencies do not move forward with revisions to the 2025 rates in accordance with the new rate adjustment methodology.
Table 5: 2025 Rate Adjustments Per 1994 Rate Manual
I
City of San Luis Obispo
9.29%
City of Arroyo Grande
3.97%
Los Osos CSD
12.47%
City of Pismo Beach
3.97%
Cambria CSD
12.78%
City of Grover Beach
3.97%
Nipomo CSD
3.23%
Oceano CSD
3.97%
Cayucos SD
12.47%
Avila Beach CSD
3.97%
Revisions for New Rate Adjustment Methodology
In negotiating the terms and conditions of a new rate adjustment methodology starting in 2026, the City and Waste Connections made the following revisions to the 2025 base year rate adjustments:
Updated Depreciation Lifespan for Trucks
The 1994 Rate Manual set a 7-year depreciation schedule for solid waste collection trucks. Modern solid waste collection trucks have a 10-year lifespan, and the depreciation schedule was adjusted by Waste Connections accordingly. Table 6, on the following page, shows the dollar magnitude of this change and the effect on the 2025 rate adjustment, with the effect being a reduction in the rate adjustment calculation ranging from 1.33% to 1.62%, depending on agency. Differences in effect by agency are the result of business unit allocations described earlier in this report.
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Attachment 2
New Rate Adjustment Methodology and 2025 Rates
Table 6: Change in Depreciation Lifespan
LAMM
Original
Depreciation
$1,338,367
$376,989
$295,515
$131,502
$398,063
$316,350
$236,919
$225,376
$114,616
$26,441
Revised
Depreciation
1,125,720
317,545
248,918
110,766
336,460
267,393
200,254
190,498
96,879
22,349
Change in
Calculations
(212,647)
(59,444)
(46,597)
(20,735)
(61,603)
(48,957)
(36,665)
(34,878)
(17,737)
(4,092)
Effect on
Rate
-1.47%
-1.62%
-1.62%
-1.62%
-1.33%
-1.33%
-1.33%
-1.33%
-1.33%
-1.33%
Adjustment
Removed Limitation on Corporate Overhead
The 1994 Rate Manual placed a limitation on corporate overhead costs. Today, corporate overhead costs fund legal, tax, payroll, human resources, engineering, compliance, IT, training and recruiting programs.
The City and Waste Connections agreed to remove the prior limitation in order to fund these services.
Table 7, below, shows the effect of removing the prior limitation on corporate overhead. Differences in effect by agency are the result of different original proportionate amounts of corporate overhead between Agencies. In the near -term, compensation to Waste Connections for corporate overhead will be limited by the CPI adjustment noted above. Cost -based adjustments to corporate overhead are possible in 2030, and will be subject to review, justification, and potential limitation at that time.
Table 7: Change in Corporate Overhead
0 :
Original
Corporate
$246,296
$46,213
$36,226
$16,120
$93,625
$74,406
$55,724
$53,009
$26,958
$6,219
Overhead
Revised
Corporate
430,378
80,753
63,301
28,168
163,600
130,017
97,371
92,627
47,106
10,867
Overhead
Change in
Calculations
184,082
34,540
27,075
12,048
69,975
55,611
41,648
39,619
20,148
4,648
Effect on Rate
1.28%
0.94%
0.94%
0.94%
1.51 %
1.51 %
1.51 %
1.51 %
1.51 %
1.51 %
Adjustment
City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates Council Agenda 1-21-2025
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Attachment 2
New Rate Adjustment Methodology and 2025 Rates
50% Cost Share for Regional Service Enhancements
Waste Connections is offering new service enhancement to the benefit of the City and the Agencies including:
)) Collection of a bulky waste item twice annually from residential accounts at no cost, via clean-up week or voucher program depending on existing program.
)) Once annual exchange of a residential solid waste, recycling, or organics cart per customer account.
Waste Connections has estimated the annual cost of offering these service regionally and is proposing recovery of 50% of the projected costs via the 2025 rate adjustment. The City and Waste Connections have tentatively agreed to this cost sharing as part of the new agreement and for inclusion in the 2025 rates. Waste Connections is proposing the low income discount customer assistance program without a change in rate adjustment.
Table 8, below, shows the effect of including the 50% cost sharing for these two service enhancements into the 2025 rate adjustment. Cost allocations are by percentage of accounts by agency, which is the reason for differences in the effect of rate adjustment by agency.
Table 8: 50% Cost Share for Service Enhancements
•
New Annual
Cart Exchange
$26,376
$9,889
$7,223
$3,623
$11,445
$7,566
$8,179
$7,987
$3,681
$320
Bulky Clean-up
Enhancements
21,091
7,908
5,776
2,897
9,152
6,050
6,540
6,386
2,944
256
Change in
Calculations
47,467
17,797
12,999
6,520
20,597
13,616
14,719
14,373
6,625
576
Effect on Rate
0.33%
0.48%
0.45%
0.51 %
0.45%
0.37%
0.54%
0.55%
0.50%
0.19%
Adjustment
Corrections to AB 939 Fees
Agency fees, which include AB 939 Fees and Franchise Fees, are included as estimates in rate adjustment applications. Because the rate applications are at the company business unit level, and not at the individual agency level, AB 939 fees in the application are allocated to the Agencies in proportion to revenues. However, only the City of San Luis Obispo and Cayucos Sanitary District receive AB 939 Fees — therefore this was corrected in the revised 2025 rate adjustments as shown in Table 9, on the following page. Note that the values for the City of San Luis Obispo also include a correction to Franchise Fee revenues.z
2 Specifically, to remove the 1994 Rate Manual's approach to "grossing up" the calculated rate adjustment to account for the Franchise Fee by including the projected Franchise Fee payment amounts in the rate adjustment calculation itself. This approach is also recommended for the other Agencies starting with the 2026 rate adjustment.
City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates 13 of 19 IZ Council Agenda 1-21-2025 11.A-42
Attachment 2
New Rate Adjustment Methodology and 2025 Rates
Table 9: Corrections to AB 939 Fees
Ob
h
111
-
Original
Agency Fees
$362,140
$5,226
$4,097
$1,823$-
Revised
Agency Fees
439,411
-
-
12,754
-
-
Change in
77,2713
(5,226)
(4,097)
10,931
-
-
Calculations
Effect on Rate
0.54%
-0.14%
-0.140/6
0.85%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Adjustment
Updated Profit Allowance
The 1994 Rate Manual, along with the Agencies agreements with Waste Connections, limits allowable profit based on an "operating ratio" of 92% or 93% of allowable collection expenses (not including post - collection disposal, processing or recycling expenses nor agency fees) depending on the agency. A 93% operating ratio is the equivalent of a 7.53% profit margin, and a 92% operating ratio is the equivalent of an 8.7% profit margin.
A key negotiation point between the City and Waste Connections was a change to the profit allowance.
Ultimately, after much discussion and negotiation, the City and Waste Connections agreed that the 2025 rate adjustment will include a 9% profit allowance of projected allowable collection costs and in 2026 and thereafter the profit allowance will be 10%. The updated profit allowance is in -keeping with industry standards for solid waste services.
For context, the 2025 profit allowance is approximately 5% of revenues and we estimate that the 2026 profit allowance will be approximately 5.5% of revenues. Table 10, on the following page, shows the effect of changing the profit allowance to 9% of collection costs for all Agencies for the 2025 rate adjustments. Differences in the effect on rate adjustment are due to differences in existing profit allowances by agency, as well as differences in the depreciation, corporate overhead and new service enhancements shown in earlier tables.
3 Includes adjustment to Franchise Fee to remove "grossing up" method from City's 2025 rate adjustment calculations.
City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates 14 of 19 IZ Council Agenda 1-21-2025 11.A-43
Attachment 2
New Rate Adjustment Methodology and 2025 Rates
Table 10: 9% Profit Allowance on Allowable Collection Costs I
Original Profit
-at
Allowance
$641,302
$188,392
$170,609
$65,715
$227,094
$180,477
$135,161
$111,295
$65,388
$15,085
Revised Profit
Allowance
768,515
224,623
175,993
78,382
237,649
188,618
141,665
134,797
68,490
15,714
Change in
Calculations
127,213
36,231
5,384
12,667
10,555
8,141
6,504
23,502
3,102
629
Effect on Rate
0.88%
0.99%
0.19%
0.99%
0.23%
0.22%
0.240/6
0.90%
0.23%
0.20%
Adjustment
Total Revisions for New Rate Adjustment Methodology
Taken altogether, the revisions to the 2025 rate adjustment result in small increases to the original 2025 rate adjustment calculations. These are shown in Table 11, on the following page, and are also shown in Attachment 2.
City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates Council Agenda 1-21-2025
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Attachment 2
New Rate Adjustment Methodology and 2025 Rates
Table 11: Overall Revisions to 2025 Rate Adjustments
1 Original 2025
Revenue
$15,640,734
$4,089,595
$3,228,699
$1,426,540
$4,786,646
$3,804,059
$2,848,911
$2,692,832
$1,378,241
$317,951
Calculation
Change in
Depreciation
(212,647)
(59,444)
(46,597)
(20,735)
(61,603)
(48,957)
(36,665)
(34,878)
(17,737)
(4,092)
Change in
Corporate
184,082
34,540
27,075
12,048
69,975
55,611
41,648
39,619
20,148
4,648
Overhead
Enhanced
Services
47,467
17,797
12,999
6,520
20,597
13,616
14,719
14,373
6,625
576
Updated Profit
Allowance
127,213
36,231
5,384
12,667
10,555
8,141
6,504
23,502
3,102
629
Corrections to
AB 939 Fees
77,271
(5,226)
(4,097)
10,931
-
-
-
-
-
-
Revised 2025
Revenue
15,864,119
4,113,493
3,223,463
1,447,971
4,826,170
3,832,470
2,875,118
2,735,447
1,390,379
319,712
Calculation
Revenues at
Current Rates
14,435,726
3,677,194
2,882,493
1,282,686
4,621,616
3,672,906
2,750,690
2,616,676
1,330,724
306,989
Shortfall
(1,428,393)
(436,299)
(340,970)
(165,285)
(204,554)
(159,564)
(124,428)
(118,771)
(59,655)
(12,724)
Revised 2025
I
.d
Proportionality in CobL of Service
R3 analyzed the 2025 rate adjustments for adequacy with respect to the cost -of -service requirements of Proposition 218. Because the base year rate adjustment methodology is based on the documented cost of provided solid waste services as expressed in Waste Connections' audited financial statements, we find that the current and proposed solid waste service rates will generate revenues sufficient to cover the cost -of -providing service plus a reasonable profit allowance commensurate with normal expectations in the solid waste industry.
R3 also analyzed the proposed solid waste service rates for adequacy with respect to proportionate allocation of costs among solid waste service customers. R3 found that the current (and thus also 4 Rate adjustments shown include grossing up for franchise fees per 1994 Rate Manual methodology, except for San Luis Obispo.
City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates 16 of 19 IZ Council Agenda 1-21-2025 11.A-45
Attachment 2
New Rate Adjustment Methodology and 2025 Rates
proposed) solid waste rate structure proportionately allocates costs to service types and container sizes based on the relative differences in cost associated with the types of services provided to customers.
For example, for customers subscribing to 60- or 90-gallon cart solid waste service, the per -gallon cost -of - service for those subscribed to the larger container size (90-gallons) is proportionately less than those subscribed to the smaller container size (60-gallons). This is because solid waste service is comprised of both fixed and variable costs, with the fixed cost portion being for the cost of collection (labor, fuel, capital equipment, and other shared costs) as well as the costs related to post -collection disposal, processing, recycling and composting. Thus, the cost -of -service for the larger container size (90-gallons) has a lesser proportion of fixed costs to variable costs compared to the smaller (60-gallon) container size.
Factors Affecting 2025 Rate Adjustments
Overall, for the Agencies and the three Waste Connections business units, the 2025 rate adjustments reflect an 8.12% increase in revenues to meet increased costs and revised profit allowances. The largest contributors to the overall increase are:
Increases in organics processing costs — Third -party costs for the organic waste post - collection processing facility operated by the company formerly named Hitachi Zosen (NOVA, and which are not within Waste Connections' control, have doubled since 2022. The change in cost is the result of changes in facility capital and operating costs.
Increases in landfill disposal costs — Related party costs for landfill waste disposal at Cold Canyon have remained flat since 2016. The 2025 rate adjustment reflects a market adjustment to these costs, from a per ton tipping fee of $41 per ton (in place since 2016) to a per ton tipping fee of $70. Waste Connections provided market comparison demonstrating the applicability of the $70 per ton market tipping fee.
Other factors play minor roles in the 2025 rate adjustment:
)) Collection costs including labor, vehicles, operating expenses and overhead — These costs are increasing in proportion to the Consumer Price Index and are projected to increase by 3.20% in 2024 and 4.21 % for 2025.
)) Agency fees — These costs are mostly proportionate to changes in rates and are projected to increase by 2.22% in 2024 and 3.30% in 2025.
Overall, collection services comprise the single largest component overall rate funded expenses, at 56% of total rate revenues. Post -collection services are the next largest component of rate funding, at 29% of total rate revenues. Agency fees comprise 10% of rate revenues and profit allowance comprises 5% of rate revenues. This is demonstrated in Chart 5, on the following page.
City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates Council Agenda 1-21-2025
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Attachment 2
New Rate Adjustment Methodology and 2025 Rates
Chart 5: Summary Components of 2025 Rate Revenues
Profit
ance
Agenc
1C
Collection
Services
56%
New Rate Adjustment Methodology
The City and Waste Connections negotiated a new methodology for adjusting rates starting in 2026, which are summarized below. R3 is preparing an exhibit to the City's new agreement with Waste Connections that will further detail the terms and conditions of the new methodology in accordance with the following points, which have been tentatively agreed to by the parties. The exhibit will be finalized and ready for distribution to the Agencies on or around November 18, 2024. It is recommended that the Agencies bring forward the exhibit as an amendment to their agreements with Waste Connections when considering the 2025 rate adjustments, which is anticipated to occur in January 2025.
The features of the new methodology include:
)) CPI Adjustments: Starting in 2026, rate adjustments will be based on the Garbage and Trash CPI, with a floor of 2% and a cap of 5%. Amounts under 2% or over 5% will carry forward. The CPI adjustment will apply to Waste Connections' collection and post -collection cost centers. The proposed CPI is the Consumer Price Index for all Urban Consumers for Garbage and Trash in the United States, all City average. Details and prior results for this CPI are included in Attachment 3.
This is the same CPI used by Waste Connections in preparing its 2025 base year application. )) Updated Profit Allowance: As stated previously, the 2025 rate adjustment includes a 9% profit allowance of projected collection costs. The City and Waste Connections have tentatively agreed that, in 2026 and thereafter, the profit allowance will be 10% of collection costs. )) Revenue Balancing Mechanism: Starting in 2027, adjustments to rates will account for shortfalls or surpluses in Waste Connections' actual revenues compared to projected revenues from prior years. For example, if Waste Connections' 2025 revenues exceed projections, the amount of surplus revenues will be credited to the rates in 2027 (and vice versa), achieving fairness in compensation and rates for the company and for ratepayers. Such adjustments would take place annually and will be independent of the CPI cap and floor noted above. )) Less Frequent Cost -Based Adjustments: Currently, solid waste rates are adjusted based on the 1994 Rate Manual every three years on Waste Connections' costs. Via the new methodology, City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates 18 of 19 IZ Council Agenda 1-21-2025 11.A-47
Attachment 2
New Rate Adjustment Methodology and 2025 Rates
cost -based adjustments would occur a maximum of every five years, and only if requested by Waste Connections or the City. The first opportunity for a cost -based adjustment will be for the 2030 rate year. If neither Waste Connections nor the City request a cost -based adjustment, then the CPI adjustment approach will be applied. Cost -based adjustments will be based on Waste Connections' consolidated audited financial statements for the region. Timeframes for cost -based adjustment application and review process will be ample, such that the City will have sufficient time for review and approval processes and such that the potential for delay in implementation is minimized.
Extraordinary Adjustments: The California Air Resources Board (CARB) Advanced Clean Fleets (ACF) regulation is requiring all solid waste collection trucks to be zero emissions in 2042.
This includes a phased in plan to get the percentage of the fleet to be zero emission vehicle (ZEV) with 10% by 2030, 25% by 2033, 50% by 2036,75% by 2039 and100% by 2042. During CPI Adjustment years, Waste Connections may request extraordinary rate adjustments due to changes in law affecting collection operations, including for compliance with CARB's ACF zero emission mandate (which may necessitate change to depreciation schedules). The City may, but is not obligated to, consider requests for extraordinary rate adjustments due to changes in law affective post -collection operations. Requests for extraordinary change are subject to good faith meet and confer negotiations between City and Waste Connections.
Example Calculations for 2026 through 2029
R3 has prepared example calculations of projected rate adjustments for 2026 through 2029 based on the tentatively agreed to terms and conditions outlined above (including adjustment to 10% profit allowance on collection services starting in 2026). Table 12, below, demonstrates this example for the City of San Luis Obispo, and Attachment 4 provides examples for all Agencies. Note that the example in Table 12 and Attachment 4 includes the following assumptions:
)) CPI at the 5% cap (note that CPI below the 5% cap will result in lower rate adjustments) )) Revenue reconciliation at 1 % below annual rate revenue projections (note that amounts above rate revenue projections will offset rate adjustments, not add to them). )) Discontinuance of the prior Franchise Fee grossing method on rate adjustment for all Agencies starting in 2026.
Table 12: Example Calculation of New Rate Methodology for the City of San Luis Obispo Collection Services
$8,539,055
$8,966,008
$9,414,308
$9,885,024
$10,379,275
Profit Allowance
768,515
896,601
941,431
988,502
1,037,927
Post -Collection Services
4,602,096
4,832,201
5,073,811
5,327,501
5,593,876
Franchise Fee
1,586,412
1,675,695
1,777,106
1,866,072
1,959,572
AB 939 Fee
368,041
386,443
405,765
426,053
447,356
Revenue Reconciliation Example
N/A
N/A
158,641
167,569
177,711
Total Revenues
15,864,119
16,756,947
17,771,062
18,660,722
19,595,717
Indexed Rate Adjustment
5.63%
6.05%
5.01 %
5.01 %
City of San Luis Obispo I New Solid Waste Rate Adjustment Methodology and 2025 Rates Council Agenda 1-21-2025
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Attachment 2
Attachment 1: Summary of Waste Connections' Original 2025 Rate Application Calculations San Luis Garbage
Company (SLG)
Mission
Country Disposal(MCD)
South County Sanitary Service(SCSS)
Category
San Luis Obispo
Los Osos
Cambria
Cayucos
Arroyo Grande
Pismo Beach
Grover Beach
Nipomo
Oceano
Avila
Single Family Resldentlat
$ 5,282,964
$ 2,795,167 $
2,201,010 $
987,376
$ 2,379,516 $
1,598,158 $
1,580,148 $
1,570,029 $
684,117 $
91,446
Multi-Famity Dumpster5
2,556,077
-
-
-
-
-
-
-
-
-
Non -Residential Carts
729,282
100,710
77,805
33,710
256,857
237,767
134,053
119,843
74,076
24,711
Current Revenues
Non -Residential Dumpsters
5,846,7T/
]76,244
599,]O1
259,830
1,979,781
1,832,640
1,033,238
923,712
570,958
190,469
Total Rate Revenue
14,415,100
3,672,121
2,878,516
1,280,916
4,616,154
3,668,565
2,747,439
2,613,584
1,329,151
306,626
Other l ncome(Allocated)
20,626
5,073
3,977
1,770
5,462
4,341
3,251
3,092
1,573
363
Total Current Revenues
14,435,726
3,677,194
2 882,493
1,282,686
4,621616
3,672,906
2,750,690
2,616,676
1,330 724
306,989
Labor
3,151,711
1,042,706
817,360
363,719
1,113,222
884,704
662,567
630,287
320,535
73,945
Depreciation
1,338,367
376,989
295,515
131,502
398,063
316,350
236,919
225,376
114,616
26,441
Insurance
1.124,499
316,418
248,035
110,374
329,978
262,241
196,396
186,828
95,012
21,919
OtherGBA
976,729
282,701
221,605
98,612
304,307
241,840
181,117
172,293
87,621
20,213
Collection Services
Fuet
754,387
321,408
251,946
112,114
254,951
202,616
151,742
144,349
73,409
16,935
Maintenance
421,166
116,487
91,312
40,633
117,432
93,326
69,893
66,488
33,813
7,800
Corporate Overhead
246,296
46,213
36,226
16,120
93,625
74,406
55,724
53,009
26,958
6,219
Total Collection Services
8,620,154
2,602,921
1,961,999
$73,074
2,611,578
2,075,4a2
1,654,357
1,478,629
751,964
173,473
Garbage Lantlfi0ing
2,408,278
349,264
273,782
121,111
508,314
403,969
302,538
287,798
146,361
33,765
Organics Processing
1,108,784
477,019
373,927
166,395
660,852
525,194
313,121
374,162
190,282
43,897
Post-CParty Se 8Affiliated
Recycta tiles Processing
916,880
173,112
135,700
60,385
270,385
214,881
160,927
153,087
77,853
17,960
PartyServices
Affiliated Parry Costs
16811:4
57,121
44,776
19,925
46,128
36,659
27,455
26,117
13,282
3,064
Total Post -Collection &Affll'lated Party Services
4,602,096
1,066,516
81 368,536
1,485,678
1,180,703
884,245
"1'165
427,778
98,686
Franchise Fee
1,515,042
336,540
263,809
117,393
462,296
367,397
275,149
261,744
133,111
30,708
Pass -Through Services
AB 939 Fee
362,140
5,226
4,097
1,823
Total PaSS-Through servicesi
1,877,1821
341,766
267,905
119,2161
462,296
367,397
275,149
261,744
133,111
30,708
Total Compensation for Services
14,999,432
3,901,203
3,058,090
1,360,825
4,559,552
3,623,582
2,713,750
2,581,537
1,312,853
302,866
Allowed Operating Margin
641,302
188,392
170,609
65,715
227,094
180,477
135,161
111,295
65,388
15,085
Total Revenue Requirement
15,640,734
4,089,595
3,228,699
1,426,540
4,786,646
3,804,059
2,848,911
2,692,832
1,378,241
327,951
Surplus(Shortfall)
(1,205,008)
(412,401)
(346,206)
(143,854)
(165,030)
(131,163)
(98,222)
(76,155)
(47,618)
(10,962)
Calculated Adjustment to Rate Revenues
8.36%
1122%
12.01%
11.22%
3.57%
3,57%
3.57%
2.91%
3.57%
3.57%
Grossing up for Franchise Fees
9.29%
12.47%
12.78%
12.47%
3.97%
3.97%
3.97%
3.23%
3.76%
3.97%
Council Agenda 1-21-2025 11.A-49
Attachment 2
Attachment 2: Summary of Revised 2025 Rate Application Calculations San Luis Garbage
Company(SLG)
Mission
Country Disposal(MCD)
South County Sanitary Service(SCSS)
Category
San Luis Obispo
Los Osos
Cambria
Cayucos
Arroyo Grande
Pismo Beach
Grover Beach
Nipomo
Oceano
Avita
Single Family Residential
$ 5,282,964
$ 2,795,167 $
2,201,010 $
987,376
$ 2,379,516 $
1,598,158 $
1,580,148 $
1,570.029 $
684,117 $
91,446
Multi -Family Dumpster5
21556,077
-
-
-
-
-
-
-
-
-
Non -Residential Carts
729,282
100,710
77,805
33,710
256,857
237,767
134,053
119,843
74,076
24,711
Current Revenues
Nan-Residentia l Dumpsters
5,846,7T/
T76,244
599,701
259,830
1,979,781
1,832,640
1,033,238
923,712
570,958
190,469
Tolal Rate Revenue
1 14,415,100
3,672,121
2,878,516
1,280,916
4,616,153
3,668,565
2,747,439
2,613.584
1,329,152
306,626
Other Income (Allocated)
20,6261
5,073
3,977
1,7701
5,462
4,341
3,251
3,092
1,573
363
Total Current Revenues
14 , 435,7261
3,677,194
2882493
__L282,6861
4621615
3,672,905
2750689
2,616,676
1330724
306989
Labor
3,658,710
1,042,706
817,360
363,719
1,113,222
884,704
662,567
630,287
320,536
73,945
Depreciation
1.125,720
317,545
248.918
110,766
336,460
267,393
200,254
190,498
96,879
22,349
Insurance
1,124,499
316,418
248,035
110,374
329,978
262,241
196,396
186,828
95,012
21,919
OtherG&A
1,024,196
300,498
234,604
105,132
324,904
255,456
195,836
186,666
94,246
20,789
ColLection Services
Fuel
714,317
321,401
251,946
112,114
254,951
202,616
151,742
144,349
73,409
16,935
Maintenance
421, 167
116,487
91,312
40,633
117,431
93,326
69,893
66,488
33,813
7,800
Corporate Overhead
430,378
80,753
63,301
28,168
163,600
130,017
97,371
92,627
47,106
10,867
Total Collection Services
1 8,639,0561
2,495,814
1,955,476
$70,906
2,640,547
2,095,751
1,674,059
1,497,742
761,000
174,605
Garbage LandfiRing
2,408,278
349,264
273,782
121,831
508,314
403,969
302.538
287,798
146,361
33,765
Organics Processing
1,108,784
477,011
373,927
166,395
660,852
525,194
393,325
374,162
190,282
43,897
Post -Collection 8 Attiliatetl
RecycLables Processing
916,880
173,112
135,700
60,385
270,385
214,881
160,927
153,087
77,853
17,960
Party Services
Affiliated Party Costs
168,154
57,121
44,776
19,925
46,128
36,659
27,455
26,117
13,282
3,064
Total Post -Collection & Affiliated Parry Services
4,602,096
1,066,616
828,386
368,536
1,485,678
1,180,703
$84,245
841,164
427,779
98,686
Franchise Fee
1,586,412
336,540
263,809
117,393
462,296
367,397
275,149
261,744
133.111
30,708
Pass -Through Services
A6939 Fee
368041
12,754
Total Pass -Through Services
1 1,954,4531
336,540
263,809
130,1471
462,296
367,397
275,149
261,744
133,111
30,708
Total Compensation for Services
15,095,604
3,888,870
3,047,470
1,369,589
4,588,521
3,643,852
2,733,452
2,600,650
1,321,890
303,998
Allowed Operating Margin
768,515
224,623
175,993
78,382
237,649
188,618
141,665
134,797
68,490
15,714
Total Revenue Requirement
15,864,1191
4,113,493
3,223,463
1,447,971
4,826,170
3,832,470
2,875,117
2,735,447
1,390,380
319,712
Surplus(Shortfall)
1,428,393)
436,299)
(340,970)
(165,285)
(204,555)
159,564)
124,428)
(118,771)
(59,655)
(12,724)
Calculated Adjustment to Rate Revenues
9.89%
11.86%
11.83%
12.89%
4.43%
4.34%
4.52%
4.54%
4.48%
4.14%
Grossing up for Franchise Fees
13.18%
1259%
14.32°/°
4.92%
4.82%
5.02%
5.04°/°
4.98%
4.60%
Profit Margin on Collection Services (2025)
9.0%
9.0%
9.0%
9.0%
9.0%
9.0%
9.0%
9.0%
9.0%
9.0%
Franchise Feel
10.0%
1 10.0%
6.0%
10.0%
10.0%
10.0%
10.0%
10.0%
10.0%
10.0%
Changeto Original Rate Application
0.60%
0.71%
-0.19%
1.85%
0.95%
0.85%
1.05%
1.81%
1.22%
0.63%
Council Agenda 1-21-2025 11.A-50
Bureau of Labor Statistics
Attachment 2
ATTACHMENT3
Consumer Price Index for All Urban Consumers (CPI-U)
Original Data Value
Series Id: CUUROOOOSEHG02
Not Seasonally Adjusted
Series Title: Garbage and trash collection in U.S. city average, all Area: U.S. city average
Item: Garbage and trash collection
Base Period: DECEMBER 1983=100
Years: 2014 to 2024
Year Jan Feb Mar Apr May
Jun Jul Aug Sep Oct Nov Dec HALF1 HALF2
Annual Change
2014
422.440
422.483
423.413
425.393
425.242
425.930
426.562
426.771
427.327
427.995
427.808
428.187
2015
427.734
429.248
429.235
429.807
431.234
430.813
431.229
432.967
433.843
434.829
436.428
436.996
1.46%
2016
437.205
438.296
437.699
437.676
438.317
437.858
438.607
439.358
439.707
440.311
443.343
444.745
1.71 %
2017
446.266
447.699
446.987
447.129
447.272
448.046
448.328
448.717
449.008
452.196
453.820
453.596
2.20%
2018
453.354
454.915
455.230
458.722
462.887
465.041
465.579
470.457
471.026
472.535
486.650
485.935
458.358
475.364
3.96%
2019
475.687
477.474
478.569
479.449
480.865
480.984
482.138
483.987
484.346
486.133
486.485
486.708
478.838
484.966
3.22%
2020
491.003
494.429
495.288
494.432
494.946
496.679
498.564
500.882
501.756
503.315
504.970
508.190
494.463
502.946
3.49%
2021
512.722
517.270
518.505
518.579
516.440
517.202
521.185
524.408
529.934
530.114
529.053
532.538
516.786
527.872
4.74%
2022
533.078
538.313
540.719
542.564
544.546
547.554
548.187
548.706
558.254
561.090
563.816
565.185
541.129
557.540
5.17%
2023
570.412
575.697
576.773
580.124
587.431
589.812
596.167
597.347
596.997
597.569
601.631
602.164
580.042
598.646
7.28%
2024
606.773
610.551
610.015
611.073
609.538
611.946
614.089
615.880
609.983
3.71 %
10-Year Average
3.69%
C011 MkA&K r.�t22V202rJ Generated on: October8,2024 (04:1 1:fft-51
Attachment 2
Attachment 4 - Indexed Rate Adjustment Methodology Example Calculations Example CPI 5% 5% 5% 5%
San Luis Obispo
2025
2025
2026
2027
2028
2029
Collection Services
$ 8,539,055
$ 8,539,055
$ 8,966,008 $
9,414,308 $
9,885,024 $
10,379,275
Profit Allowance
768,515
768,515
896,601
941,431
988,502
1,037,927
Post -Collection Services
4,602,096
4,602,096
4,832,201
5,073,811
5,327,501
5,593,876
Franchise Fee
1,586,412
1,586,412
1,675,695
1,777,106
1,866,072
1,959,572
AB 939 Fee
368,041
368,041
386,443
405,765
426,053
447,356
Revenue Reconciliation Example
N/A
N/A
N/A
158,641
167,569
177,711
Total Revenues
1 15,864,119
15,864,119
16,756,947
17,771,062
18,6609722
19,595,717
Indexed Rate Adjustment
5.63%
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
-196
1 (158,641)
(167,569)
(177,711)
(186,607)
(195,957)
Arroyo Grande
2025
2025
2026
2027
2028
2029
Collection Services
$ 2,640,547
$
2,640,547
$ 2,772,575 $
2,911,203 $
3,056,763 $
3,209,602
Profit Allowance
237,649
237,649
277,257
291,120
305,676
320,960
Post -Collection Services
1,485,678
1,485,678
1,559,962
1,637,960
1,719,858
1,805,851
Franchise Fee
462,296
484,875
512,199
543,197
570,391
598,970
AB 939 Fee
-
-
-
-
-
-
Revenue Reconciliation Example
N/A
N/A
N/A
48,487
51,220
54,320
Total Revenues
1 4,826,170
1 4,848,749
1 5,121,993
5,431,968
5,703,909
5,989,703
Indexed Rate Adjustment
5.64%
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
-19/0
(48,487)
(51,220)
(54,320)
(57,039)
(59,897)
Los Osos CSD
2025
2025
2026
2027
2028
2029
Collection Services
$ 2,495,814
$
2,495,814
$ 2,620,605 $
2,751,635 $
2,889,217 $
3,033,677
Profit Allowance
224,623
224,623
262,060
275,163
288,922
303,368
Post -Collection Services
1,056,516
1,056,516
1,109,341
1,164,808
1,223,049
1,284,201
Franchise Fee
336,540
419,661
443,556
470,397
493,949
518,698
AB 939 Fee
-
-
-
-
-
-
Revenue Reconciliation Example
N/A
N/A
N/A
41,966
44,356
47,040
Total Revenues
1 4,113,493
1 4,196,613
1 4,435,563
4,703,970
4,939,492
5,186,984
Indexed Rate Adjustment
5.690
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
-1%
(41,966)
(44,356)
(47,040)
(49,395)
(51,870)
Pismo Beach
2025
2025
2026
2027
2028
2029
Collection Services
$ 2,095,751
$
2,095,751
$ 2,200,539 $
2,310,566 $
2,426,094 $
2,547,399
Profit Allowance
188,618
188,618
220,054
231,057
242,609
254,740
Post -Collection Services
1,180,703
1,180,703
1,239,738
1,301,725
1,366,811
1,435,152
Franchise Fee
367,397
385,008
406,703
431,316
452,909
475,602
AB 939 Fee
-
-
-
-
-
-
Revenue Reconciliation Example
N/A
N/A
N/A
38,501
40,670
43,132
Total Revenues
1 3,832,470
3,850,080
4,067,035
4,313,165
4,529,095
4,756,025
Indexed Rate Adjustment
5.641
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
(38,501)
(40,670)
(43,132)
(45,291)
(47,560)
Council Agenda 1-21-2025 11.A-52
Attachment 2
Cambria CSD
2025
2025
2026
2027
2028
2029
Collection Services
$ 1,955,476
$
1,955,476
$ 2,053,250 $
2,155,912 $
2,263,708 $
2,376,894
Profit Allowance
175,993
175,993
205,325
215,591
226,371
237,689
Post -Collection Services
828,185
828,185
869,595
913,074
958,728
1,006,664
Franchise Fee
263,809
188,914
199,670
211,664
222,261
233,395
AB 939 Fee
-
-
-
-
-
-
Revenue Reconciliation Example
N/A
N/A
N/A
31,486
33,278
35,277
Total Revenues
3,223,463
3,148,569
3,327,840
3,527,727
3,704,346
3,889,920
Indexed Rate Adjustment
5.69%
6.01%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
-19/0
1 (31,486)
(33,278)
(35,277)
(37,043)
(38,899)
Grover Beach
2025
2025
2026
2027
2028
2029
Collection Services
$ 1,574,059
$
1,574,059
$ 1,652,762 $
1,735,400 $
1,822,170 $
1,913,278
Profit Allowance
141,665
141,665
165,276
173,540
182,217
191,328
Post -Collection Services
884,245
884,245
928,457
974,880
1,023,624
1,074,805
Franchise Fee
275,149
288,885
305,166
323,634
339,836
356,864
AB 939 Fee
-
-
-
-
-
-
Revenue Reconciliation Example
N/A
N/A
N/A
28,889
30,517
32,363
Total Revenues
2,875,117
2,888,854
3,051,661
3,236,343
3,398,364
3,568,639
Indexed Rate Adjustment
5.640
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
-1%
(28,889)
(30,517)
(32,363)
(33,984)
(35,686)
Nipomo CSD
2025
2025
2026
2027
2028
2029
Collection Services
$ 1,497,742
$
1,497,742
$ 1,572,629 $
1,651,261 $
1,733,824 $
1,820,515
Profit Allowance
134,797
134,797
157,263
165,126
173,382
182,051
Post -Collection Services
841,164
841,164
883,223
927,384
973,753
1,022,441
Franchise Fee
261,744
274,856
290,346
307,917
323,333
339,533
AB 939 Fee
-
-
-
-
-
-
Revenue Reconciliation Example
N/A
N/A
N/A
27,486
29,035
30,792
Total Revenues
2,735,447
2,748,559
2,903,461
3,079,173
3,233,326
3,395,332
Indexed Rate Adjustment
5.64%
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
-19/0
(27,486)
(29,035)
(30,792)
(32,333)
(33,953)
Oceano CSD
2025
2025
2026
2027
2028
2029
Collection Services
$ 761,000
$
761,000
$ 799,050 $
839,002 $
880,953 $
925,000
Profit Allowance
68,490
68,490
79,905
83,900
88,095
92,500
Post -Collection Services
427,779
427,779
449,168
471,626
495,207
519,968
Franchise Fee
133,111
139,697
147,569
156,500
164,335
172,569
AB 939 Fee
-
-
-
-
-
-
Revenue Reconciliation Example
N/A
N/A
N/A
13,970
14,757
15,650
Total Revenues
1,390,380
1,396,966
1,475,692
1,564,998
1,643,347
1,725,686
Indexed Rate Adjustment
5.640
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
(13,970)
(14,757)
(15,650)
(16,433)
(17,257)
Council Agenda 1-21-2025 11.A-53
Attachment 2
Cayucos SD
2025
2025
2026
2027
2028
2029
Collection Services
$ 870,906
$
870,906
$ 914,452 $
960,174 $
1,008,183 $
1,058,592
Profit Allowance
78,382
78,382
91,445
96,017
100,818
105,859
Post -Collection Services
368,536
368,536
386,962
406,311
426,626
447,957
Franchise Fee
117,393
147,842
156,250
165,705
174,002
182,720
AB 939 Fee
12,754
12,754
13,392
14,061
14,764
15,503
Revenue Reconciliation Example
N/A
N/A
N/A
14,784
15,625
16,571
Total Revenues
1,447,971
1,478,420
1,562,501
1,657,053
1,740,019
1,827,202
Indexed Rate Adjustment
5.69%
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
-19/0
1 (14,784)
(15,625)
(16,571)
(17,400)
(18,272)
Avila Beach CSD
2025
2025
2026
2027
2028
2029
Collection Services
$ 174,605
$
174,605
$ 183,335 $
192,502 $
202,127 $
212,234
Profit Allowance
15,714
15,714
18,334
19,250
20,213
21,223
Post -Collection Services
98,686
98,686
103,620
108,801
114,241
119,953
Franchise Fee
30,708
32,112
33,921
35,974
37,775
39,667
AB 939 Fee
-
-
-
-
-
-
Revenue Reconciliation Example
N/A
N/A
N/A
3,211
3,392
3,597
Total Revenues
319,712
321,117
339,210
359,738
377,748
396,675
Indexed Rate Adjustment
5.630
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
-1%
(3,211)
(3,392)
(3,597)
(3,777)
(3,967)
Total
2025
2025
2026
2027
2028
2029
Collection Services
$ 22,604,956
$ 22,604,956
$ 23,735,204 $
24,921,964 $
26,168,062 $
27,476,465
Profit Allowance
2,034,446
2,034,446
2,373,520
2,492,196
2,616,806
2,747,647
Post -Collection Services
11,773,587
11,773,587
12,362,266
12,980,380
13,629,399
14,310,869
Franchise Fee
3,834,558
3,948,262
4,171,077
4,423,411
4,644,863
4,877,591
AB 939 Fee
380,795
380,795
399,835
419,826
440,818
462,859
Revenue Reconciliation Example
N/A
N/A
N/A
407,420
430,419
456,452
Total Revenues
40,628,342
40,742,046
43,041,902
45,645,298
47,930,367
50,331,883
Indexed Rate Adjustment
5.65%
6.05%
5.01%
5.01%
Revenue Surplus (Shortfall) Example
(407,420)
(430,419)
(456,452)
(479,304)
(503,319)
Council Agenda 1-21-2025 11.A-54
Attachment 3
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA APPROVING INTEGRATED SOLID WASTE RATES CHARGED BY SOUTH COUNTY SANITARY SERVICE EFFECTIVE JANUARY 1, 2025 AND EACH JANUARY 1 FROM 2026 THROUGH 2O29 VIA A NEW RATE ADJUSTMENT
METHODOLOGY
WHEREAS, the City of San Luis Obispo, in its capacity as the lead agency on the solid waste rate adjustment methodology update process, and in partnership with Los Osos Community Services District and Waste Connections, completed negotiations and arrived at tentative agreement with Waste Connections regarding the terms and conditions of a new methodology; and
WHEREAS, the outcome of the negotiations was a report entitled New Solid Waste Rate Adjustment Methodology and 2025 Rates and Exhibit E Annual Rate Adjustment Methodology, collectively referred to as "Methodology", and the Methodology was the result of extensive good -faith negotiations between the City of San Luis Obispo and Waste Connections, with due consideration to input provided by other public agency stakeholders, including the City of Pismo Beach; and
WHEREAS, South County Sanitary Service (SCSS) has submitted a rate increase application in accordance with the City's amended franchise agreement for solid waste, recycling, green waste, and organic waste services, using the Methodology, which is designed to enhance rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach that the solid waste rates set forth in Exhibit A to this Resolution are approved to be charged by South County Sanitary Service and shall become effective January 1, 2025 and each January 1 from 2026 through 2029 via the Methodology.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 21 st day of January 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Agenda 1-21-2025 11.A-55
Attachment 3
Approved:
Ed Waage, Mayor
Attest:
Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on
Erica Inderlied, City Clerk
Council Agenda 1-21-2025 11.A-56
Attachment 3.A
SOUTH COUNTY SANITARY SERVICE
RATE SCHEDULE for SOLID WASTE SERVICES, EFFECTIVE JANUARY 1, 2025
CITY OF PISMO BEACH
Service Description
Pickups Per
Week
Monthly Rate
Effective 01/01/2024
Proposed Rate
Adjustment
Monthly Rate
Effective 01/01/2025
RESIDENTIAL SINGLE FAMILY DWELLING AND MULTI
-UNIT (4 UNITS OR LESS):
32 Gallon Waste Wheeler
1 $23.76
1.15 $24.91
64 Gallon Waste Wheeler
1 $47.56
2.29 $49.85
96 Gallon Waste Wheeler
1 $71.33
3.44 $74.77
TWO-64 Gallon Waste Wheelers
1 $95.14
4.59 $99.73
ONE 64 & ONE 96 Gallon
1 $118.92
5.73 $124.65
TWO-96 Gallon Waste Wheelers
1 $142.73
6.88 $149.61
Residential customers must use the waste wheelers provided by the garbage company. This solid service fee for residential trash collections (container with black or gray lid) includes once a week pick-up of one greenwaste/organics container (green lid), one recycling container (blue lid).
MULTI -FAMILY (5 or MORE)
Rates are the same as commercial dumpsters and waste wheeler rates (below).
COMMERCIAL DUMPSTERS - ALL AREAS:
1 yd dumpster
1 $130.68
6.30 $136.98
1 yd dumpster
2 $190.71
9.19 $199.90
1 yd dumpster
3 $250.77
12.09 $262.86
1 yd dumpster
4 $321.39
15.49 $336.88
1 yd dumpster
5 $377.86
18.21 $396.07
1 yd dumpster
6 $448.49
21.62 $470.11
1 yd dumpster
7 $545.12
26.27 $571.39
1.5 yd dumpster
1 $148.35
7.15 $155.50
1.5 yd dumpster
2 $229.58
11.07 $240.65
1.5 yd dumpster
3 $324.94
15.66 $340.60
1.5 yd dumpster
4 $423.80
20.43 $444.23
1.5 yd dumpster
5 $515.64
24.85 $540.49
1.5 yd dumpster
6 $582.71
28.09 $610.80
1.5 yd dumpster
7 $682.31
32.89 $715.20
2 yd dumpster
1 $166.02
8.00 $174.02
2 yd dumpster
2 $277.23
13.36 $290.59
2 yd dumpster
3 $395.54
19.07 $414.61
2 yd dumpster
4 $522.68
25.19 $547.87
2 yd dumpster
5 $646.26
31.15 $677.41
2 yd dumpster
6 $724.00
34.90 $758.90
2 yd dumpster
7 $841.80
40.57 $882.37
Council Agenda 1-21-2025 11.A-57
Attachment 3.A
SOUTH COUNTY SANITARY SERVICE
RATE SCHEDULE for SOLID WASTE SERVICES, EFFECTIVE JANUARY 1, 2025
CITY OF PISMO BEACH
Service Description
Pickups Per
Week
Monthly Rate
Effective 01/01/2024
Proposed Rate
Adjustment
Monthly Rate
Effective 01/01/2025
3 yd dumpster
1 $197.78
9.53 $207.31
3 yd dumpster
2 $374.39
18.05 $392.44
3 yd dumpster
3 $522.68
25.19 $547.87
3 yd dumpster
4 $681.60
32.85 $714.45
3 yd dumpster
5 $808.71
38.98 $847.69
3 yd dumpster
6 $964.11
46.47 $1,010.58
3 yd dumpster
7 $1,231.46
59.36 $1,290.82
4 yd dumpster
1 $247.22
11.92 $259.14
4 yd dumpster
2 $437.90
21.11 $459.01
4 yd dumpster
3 $628.60
30.30 $658.90
4 yd dumpster
4 $808.71
38.98 $847.69
4 yd dumpster
5 $999.46
48.17 $1,047.63
4 yd dumpster
6 $1,186.67
57.20 $1,243.87
4 yd dumpster
7 $1,511.23
72.84 $1,584.07
6 yd dumpster
1 $370.81
17.87 $388.68
6 yd dumpster
2 $656.87
31.66 $688.53
6 yd dumpster
3 $942.90
45.45 $988.35
6 yd dumpster
4 $1,213.05
58.47 $1,271.52
6 yd dumpster
5 $1,499.21
72.26 $1,571.47
6 yd dumpster
6 $1,780.00
85.80 $1,865.80
6 yd dumpster
7 $2,266.85
109.26
$2,376.11
8 yd dumpster
1 $494.42
23.83 $518.25
8 yd dumpster
2 $875.82
42.21 $918.03
8 yd dumpster
3 $1,257.21
60.60 $1,317.81
8 yd dumpster
4 $1,617.43
77.96 $1,695.39
8 yd dumpster
5 $1,998.98
96.35 $2,095.33
8 yd dumpster
6 $2,373.35
114.40
$2,487.75
8 yd dumpster
7 $3,022.08
145.66
$3,167.74
The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning.
Council Agenda 1-21-2025 11.A-58
Attachment 3.A
SOUTH COUNTY SANITARY SERVICE
RATE SCHEDULE for SOLID WASTE SERVICES, EFFECTIVE JANUARY 1, 2025
CITY OF PISMO BEACH
Service Description
Pickups Per
Week
Monthly Rate
Effective 01/01/2024
Proposed Rate
Adjustment
Monthly Rate
Effective 01/01/2025
COMMERCIAL GARBAGE CANS - ALL AREAS:
One 32 Gallon Waste Wheeler
1 $31.74
1.53 $33.27
One 32 Gallon Waste Wheeler
2 $67.05
3.23 $70.28
One 32 Gallon Waste Wheeler
5 $147.68
7.12 $154.80
One 32 Gallon Waste Wheeler
7 $205.40
9.90 $215.30
Two 32 Gallon Waste Wheelers
1 $67.05
3.23 $70.28
Two 32 Gallon Waste Wheelers
2 $91.87
4.43 $96.30
Two 32 Gallon Waste Wheelers
3 $101.67
4.90 $106.57
Two 32 Gallon Waste Wheelers
4 $120.89
5.83 $126.72
Two 32 Gallon Waste Wheelers
5 $148.40
7.15 $155.55
Two 32 Gallon Waste Wheelers
6 $175.88
8.48 $184.36
Two 32 Gallon Waste Wheelers
7 $266.70
12.85 $279.55
Three 32 Gallon Waste Wheelers
1 $77.70
3.75 $81.45
Three 32 Gallon Waste Wheelers
2 $130.68
6.30 $136.98
Three 32 Gallon Waste Wheelers
3 $164.72
7.94 $172.66
Three 32 Gallon Waste Wheelers
4 $199.04
9.59 $208.63
Three 32 Gallon Waste Wheelers
5 $223.06
10.75 $233.81
Three 32 Gallon Waste Wheelers
7 $305.77
14.74 $320.51
Four 32 Gallon Waste Wheelers
1 $98.87
4.77 $103.64
Four 32 Gallon Waste Wheelers
2 $158.89
7.66 $166.55
Four 32 Gallon Waste Wheelers
3 $203.38
9.80 $213.18
Four 32 Gallon Waste Wheelers
4 $247.88
11.95 $259.83
Four 32 Gallon Waste Wheelers
5 $292.39
14.09 $306.48
Four 32 Gallon Waste Wheelers
6 $336.87
16.24 $353.11
Four 32 Gallon Waste Wheelers
7 $381.37
18.38 $399.75
Five 32 Gallon Waste Wheelers
1 $120.04
5.79 $125.83
Five 32 Gallon Waste Wheelers
2 $194.23
9.36 $203.59
Five 32 Gallon Waste Wheelers
3 $259.56
12.51 $272.07
Five 32 Gallon Waste Wheelers
4 $324.88
15.66 $340.54
Five 32 Gallon Waste Wheelers
5 $390.22
18.81 $409.03
Five 32 Gallon Waste Wheelers
6 $455.54
21.96 $477.50
Five 32 Gallon Waste Wheelers
7 $520.87
25.11 $545.98
Six 32 Gallon Waste Wheelers
1 $137.72
6.64 $144.36
Six 32 Gallon Waste Wheelers
2 $222.44
10.72 $233.16
Six 32 Gallon Waste Wheelers
3 $281.46
13.57 $295.03
Six 32 Gallon Waste Wheelers
4 $352.42
16.99 $369.41
Six 32 Gallon Waste Wheelers
5 $423.39
20.41 $443.80
Council Agenda 1-21-2025 11.A-59
Attachment 3.A
SOUTH COUNTY SANITARY SERVICE
RATE SCHEDULE for SOLID WASTE SERVICES, EFFECTIVE JANUARY 1, 2025
CITY OF PISMO BEACH
Service Description
Pickups Per
Week
Monthly Rate
Effective 01/01/2024
Proposed Rate
Adjustment
Monthly Rate
Effective 01/01/2025
Six 32 Gallon Waste Wheelers
6 $508.12
24.49 $532.61
Six 32 Gallon Waste Wheelers
1 7
1 $588.91
28.39 $617.30
* Maximum volume and weight per garbage can : 33 gallons / 80 pounds COMMERCIAL - OTHER CHARGES:
Rates for all commercial customers include recycling or greenwaste/organics pickup once per week, included with the garbage service rate. Customers can choose from a 64 or 96 gallon blue co -mingle recycle waste wheeler or a 32 64 gallon organics waste wheeler provided free of charge (96 gallon waste wheelers can only be used with green waste due to weight). If you need a bin for recycling there is a charge (see below).
If you need more frequent recycling service, it can be provided at a 50% discount from the garbage service rates for the specified level of service required.
MISCELLANEOUS CHARGES - ALL CUSTOMERS:
Overstacked Garbage & extra bags
Minimum/unit
each
$7.56
0.36 $7.92
Overstacked Greenwaste & extra
ba s Minimum/unit
each
$3.79
0.18 $3.97
Overstacked Blue Bin & extra bags
Minimum/unit
each
$3.79
0.18 $3.97
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE RATES
per month
$18.88
0.91 $19.79
Monthly charge for additional 32, 64
or 96-gallon green waste/organics
service
per month
$5.23
0.25 $5.48
Monthly charge for additional 32, 64
or 96- allon recycle service
per month
$2.20
0.11 $2.31
Vacant Rate
per month
$17.61
0.85 $18.46
Waste wheeler cleaning
each time
$28.17
1.36 $29.53
Trip charge
each time
$18.88
0.91 $19.79
Non-payment downsize service
each time
$18.88
0.91 $19.79
Non-payment redeliver waste wheeler
each time
$18.88
0.91 $19.79
Non-payment reconnect service
each time
$45.41
2.19 $47.60
Small item pickup (TV, toilet)
each
$44.31
2.14 $46.45
Appliance pickup -residential
each
$62.49
3.01 $65.50
Lock Charge
per month
$10.70
0.52 $11.22
Garbage extras on your scheduled
pickup day
per yard
$15.94
0.77 $16.71
Garbage extras -NOT ON YOUR
SCHEDULED PICKUP DAY
per yard
$43.99
2.12 $46.11
Commercial Waste Wheeler rent
per month
$5.85
0.28 $6.13
Re -deliver bin on stopped acct
each time
$54.19
2.61 $56.80
Compactors
per yard
$24.10
1.16 $25.26
Sunday Service (in additional to
,garbage service level)
per month
$94.55
4.56 $99.11
Recycle bin rental
per month
$74.19
3.58 $77.77
Council Agenda 1-21-2025 11.A-60
Attachment 3.A
SOUTH COUNTY SANITARY SERVICE
RATE SCHEDULE for SOLID WASTE SERVICES, EFFECTIVE JANUARY 1, 2025
CITY OF PISMO BEACH
Service Description
Pickups Per
Monthly Rate
Proposed Rate
Monthly Rate
Week
Effective 01/01/2024
Adjustment
Effective 01/01/2025
Stand by time
per hour
$90.63
4.37 $95.00
Extra bin cleaning
each
$84.51
1 4.07
1 $88.58
City Clean Up
each
$15.47
0.75 $16.22
Larger than residential appliance or
glass, glass doors, or plate glass
by quote only
Replacement/Repair of bins or waste
wheelers at market price
Short Term Dumpsters:
Delivery & Pickup -Bin
$54.19
2.61 $56.80
Delivery & Pickup -Waste Wheeler
$18.88
0.91 $19.79
Rental
Per Day
$4.01
0.19 $4.20
Empties
Per Yard
$43.99
2.12 $46.11
Mattress:
Twin
Per
$24.58
1.18 $25.76
Double
Per
$24.58
1.18 $25.76
Queen
Per
$24.58
1.18 $25.76
King
Per
$24.58
1.18 $25.76
ADDITIONAL INFORMATION ALL CUSTOMERS:
1. Customers requesting Temporary Bins or Roll -off Box Service can call the office for current rates
2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container.
3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose.
4. Recycling, Greenwaste/Organcis and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day.
5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings.
6. Cleaning fees will be billed on a time and materials basis
7. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill.
8. Customers can be responsible for contamination fees
Any additional recycling including greenwaste/organic services are charged out at 50% of the garbage rate.
Council Agenda 1-21-2025 11.A-61
G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syo sEPAgenda Item #12.A
Meeting Date: January 21, 2025
TITLE:
City Council Confirmation of the Director of Public Works RECOMMENDATION:
Confirm the City Manager's appointment of Rosemarie Gaglione to serve as Director of Public Works in accordance with Pismo Beach Municipal Code Section 2.08.050.
DISCUSSION:
Pismo Beach Municipal Code Section 2.08.050 provides that the City Manager has the sole authority "to appoint competent, qualified officers and employees to the administrative service and department head employees [... ]" provided that such appointments "shall only be effective upon confirmation by the council." This agenda item will provide the opportunity for the City Council to confirm the City Manager's appointment of Rosemarie Gaglione to serve as the new Director of the Public Works Department.
Ms. Gaglione has over 30 years of experience in public works and has demonstrated exceptional leadership in her previous roles, which includes serving the County of Marin, and cities of Oxnard and Goleta. Her expertise in managing complex projects, fostering employee and community engagement, and ensuring sustainable development aligns seamlessly with the City's commitment to providing unmatched service with integrity, safety and efficiency.
Conclusion and Recommendation
Staff recommends that the City Council, by minute order, approve the City Manager's appointment of Rosemarie Gaglione to serve as Director of Public Works in accordance with Pismo Beach Municipal Code Section 2.08.050.
FISCAL IMPACT:
There is no impact to the adopted budget from staff's recommended action.
ATTACHMENTS:
1. Resume
Submitted by: Jorge E. Garcia, City Manager
City Manager Approval: r
Council Agenda 1-21-2025 12.A-1
Rosemarie R. Gaglione, P.E. Attachment 1
� llllllll�
A dedicated, innovative, and strategic leader with more than 30 years' experience and advanced skills at the City and County level in the areas of City and County Leadership, Public Works, Utilities, Project Management and Construction, Procurement, General Services and Parks.
Long-term champion of public service and transparency with solid leadership skills and sound judgment.
Extensive experience implementing the strategic vision of an organization through strong partnerships with various levels of government, elected officials, public employees and stakeholders. Credible organizational public representative with proven ability to communicate effectively with diverse constituents. Thrives in demanding high pressure work environments and challenging or sensitive situations.
PROFESSIONAL EXPERIENCE
Public Works Director, County of Marin March 2021 - Present • Provide leadership, direction and mentoring to the staff of the Public Works Department and its 23 Divisions, including the Flood Control and Water Conservation District, Engineering, Construction Management, Capital Projects, Waste Management, Roads, Building Maintenance, Waste Management, Procurement, Real Estate, Airport Management, General Services, Accounting and more.
• Serve as the County Engineer, Flood Control District Engineer, Road Commissioner, Purchasing Agent and Floodplain Administrator
• Through subordinates, which include four Assistant Directors, manage 250 FTEs and numerous consultants.
• Direct the preparation and administration of an annual operating budget of $155 million. • Oversee the management of a $300 million capital improvement program. • Participate in and provide leadership in a One Water initiative as a partner in the Marin Water Managers Group identifying collaborative ways to increase regional water supply resilience. • Provide leadership in continuous improvement and the leveraging of technology to enhance service levels and efficiency.
• Participate in the ERP Upgrade project.
• Engage with the cities and towns to find opportunities to collaborate and share resources. • Work with our elected leaders at the State and Federal level to fund priority projects • Ensure that the department contributes its best efforts to the Board approved Strategic Plan. • Continuously guide, empower, and inspire a skilled team towards fulfillment of customer needs, and Board approved projects, strategic goals, and priorities. • Balance competing needs and priorities against resource and regulatory constraints. • Aggressively pursue grant opportunities to deliver Board priority projects. • Foster positive working relationships by meeting with all 23 divisions on a quarterly schedule so that they can speak to me directly and know that I hear them; issue a Weekly Update to all staff on Fridays; publish an annual Book of Accomplishments to spotlight their hard work and changed the annual employee awards to also highlight our trades staff — not just those in the office. • Mentor and coach future leadership and establish a path for succession planning. • Created a program to retain and develop our engineers and help them to obtain licensure. • Manage difficult conversations and hold staff accountable in a way that encourages them to perform better, by helping them to align their work to end results that satisfy the people of Marin while being cognizant of regulations and costs.
• Continue to move from a personality driven to a performance driven organization. • Provide regional leadership in engineering by serving as the North Bay Regional Director for the County Engineers Association of California.
Council Agenda 1-21-2025 12.A-2
Rosemarie R. Gaglione, P.E. Attachment 1
� IIIIIIII�
Public Works Director, City of Oxnard, CA January 2018 to March 2021 • Provided leadership for the Public Works Department including Administration, Water, Recycled Water, Wastewater and Sewers, Environmental Resources (solid waste), Capital Projects; Engineering, Stormwater, Parks, Special Districts, Streets, Traffic Engineering and Operations, Fleet and Facilities Maintenance.
• Through subordinates, managed 498 FTEs, and numerous consultants. • Directed the preparation and administration of a budget of $323 million and a 5-year, $1 billion Capital Improvement Program which included the reconstruction of most of our wastewater treatment plant.
• Provided support to the City Manager and the Council and performed weekly public outreach to the community in support of Measure E.
• Participated in regional leadership on groundwater sustainability issues, and in providing treatment and delivery of potable and recycled water and the treatment of wastewater. • Attracted new talent with a variety of innovative and exciting projects and opportunities to elevate skill sets, within a culture of mutual respect.
• Co-authored numerous successful grant applications.
• Developed and implemented succession plans.
• Balanced competing City needs and objectives within resource and regulatory constraints. • Ensured the Council approved Strategic Plan, vision, and goals were implemented.
City of Goleta, CA
Public Works Director / City Engineer March 2014 to January 2018 • Managed Administration, Capital Projects, Engineering and Development Review, Stormwater and Solid Waste, Parks, Streets, Fleet and Facilities Maintenance. • Oversaw the development of plans, policies, standards and procedures. • Authored numerous successful grant applications.
• Provided support to the City Manager and City Council. • Collaborated and negotiated with California Coastal Commission, Army Corps of Engineers, Department of Fish and Wildlife, Caltrans, SBCAG, CalOES, FEMA, citizen groups and individual property owners.
• Directed the preparation and administration of the department budget. • Collaborated with community groups such as Rotary, Santa Barbara Bicycle Coalition and the Chamber of Commerce on projects and operational concerns. • Consistently worked to ensure that the Council approved Strategic Plan, vision and goals were being implemented.
• Trained, developed, and mentored staff.
Assistant City Engineer July 2008 to March 2014
• Managed a $250 million Capital Improvement Program and team of Project Engineers. • Managed Development Review, Stormwater, and Solid Waste Divisions. • Performed preliminary design functions and directed the final design of capital improvements. • Coordinated with outside agencies including California Coastal Commission, Army Corps of Engineers, Department of Fish and Wildlife, Caltrans, SBCAG, CalOES, FEMA, as well as citizen groups and individual property owners.
• Prepared reports and technical studies.
• Oversaw the progress of multiple active projects from initial conception to completion. • Supervised preparation of grant applications — also winning the only TIGER grant in the region. • Created RFQ/Ps, evaluated proposals and selected consultants, negotiated terms, administered contracts, monitored costs, and approved payments.
• Reviewed and approved project plans, specifications, estimates and contract documents. • Trained, mentored, and developed staff.
Council Agenda 1-21-2025 12.A-3
Rosemarie R. Gaglione, P.E.
� IIIIIIII�
Attachment 1
Senior Project Manager April 2007 to July 2008
• Maintained the Capital Improvement Program and the Goleta Transportation Improvement Program (DIF), and managed projects, following them through from concept to completion. • Managed a combination of full time and contract staff • Defined project scopes and created Project Initiation Documents. • Authored numerous successful grant applications.
• Created RFQ/Ps, evaluated proposals and selected consultants, negotiated terms, administered contracts, monitored costs, and approved payments.
• Prepared the division budget.
• Trained and developed staff.
• Prepared staff reports, presented to the City Council. • Responsible for media coverage for projects.
• Served as liaison between Public Works and outside agencies and utilities.
San Luis Obispo County, CA, Department of Public Works
Transportation Division
Capital Improvement Projects Manager (Engineer III) April 2001 to April 2007 • Developed Capital Improvement Programs for three regions within the County and served as the Public Works liaison for those regions and their advisory councils. • Developed and maintained development impact fee studies and programs. • Defined project scopes, authored Project Summaries, secured funding through grant proposals, built consensus among functional groups and citizen advisory groups. • Developed RFPs, selected consultants, negotiated terms, administered contracts, monitored costs and approved payments.
• Prepared project budgets and managed resources.
• Prepared reports and presentations for the Board of Supervisors and local advisory committees. • Responsible for media coverage for projects.
• Collaborated and coordinated with other County departments and government agencies, including Building and Planning, County Counsel, County Environmental, the Airport District, the Army Corps of Engineers, Regional Water Quality Control Board, Department of Labor, Caltrans, Federal Highway Administration and the Department of Fish and Game. • Participated in pre -application and development review meetings with Planning Department. • Reviewed traffic studies and analyzed traffic impacts to determine necessary road improvements. • Performed minor design work and prepared traffic control plans.
Construction Division
Engineer I & II
Development Services Division
Senior Engineering Aide
March 1999 to April 2001
March 1998 - March 1999
Council Agenda 1-21-2025 12.A-4
Rosemarie R. Gaglione, P.E. Attachment 1
� IIIIIIII�
EDUCATION & TRAINING
0 Bachelor of Science, Environmental Engineering, California Polytechnic State University, San Luis Obispo. Emphasis on Water and Wastewater. Minor in Technical Writing Q AS, Mathematics and Physical Science, American River College, Sacramento 0 Week-long Training in High Performance Organizations at University of Charleston 0 Masters Equivalence in Mathematics to teach mathematics in the college system Q Caltrans RE Academy, courses in contract administration, traffic safety, labor laws Q Several Courses in Environmental Regulation taken through UC Extension Q Numerous courses in leadership and management throughout my career
MEMBERSHIPS
• Currently serving as the North Bay Regional Director of the County Engineers Association of California - Currently
• Commissioner on California Uniform Construction Cost Accounting Commission (CUCCAC) August 2020 to March 2021 (1 had to give up that position when 1 took the job in Marin) I was recommended by Senator Limon.
Council Agenda 1-21-2025 12.A-5
G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syo Bt Agenda Item #12.13
Meeting Date: January 21, 2025
TITLE:
2025 State Legislative Agenda
RECOMMENDATION:
Approve the 2025 State Legislative Agenda.
DISCUSSION:
Townsend Public Affairs (Townsend) provides the City with grant writing and legislative advocacy service at the state level. As part of its services, Townsend formulates the City's State Legislative Agendas and provides effective grant writing and legislative advocacy services. Townsend has been successful in helping to obtain funds for various City priorities and acting as a liaison to state legislators with respect to issues that may impact the City.
2025 State Legislative Agenda
Townsend has proposed a State Legislative Agenda for 2025, provided as Attachment
1. The legislative agenda serves as the City's official policy document for interacting with state officials and for taking positions on legislation. At this meeting, Eric O'Donnell of Townsend will review the proposed 2025 Legislative Agenda and provide an overview of current activity at the state level.
Conclusion and Recommendation
Staff recommends that the City Council approve the City's 2025 State Legislative Agenda (Attachment 1).
FISCAL IMPACT:
There is no fiscal impact associated with this action.
ATTACHMENTS:
1. 2025 State Legislative Agenda
Submitted by: Mike James, Assistant City Manager
City Manager Approval:
Council Agenda 1-21-2025 12.13-1
Attachment 1
2025 STATE
LEGISLATIVE
AGENDA
January 2025
Council Agenda 1-21-2025 12.13-2
Attachment 1
(\TY OF
TC)WNSEND
A r TPA
'sM0 BEP`
Townsend Public Affairs, Inc., is proud and honored to represent the City of Pismo Beach. This legislative agenda is prepared in alignment with City Council goals and objectives, and to provide background information and recommendations for the City as part of its critical work on behalf of its residents and visitors.
Pismo Beach City Council
Mayor Ed Waage
Mayor Pro Tempore Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton
Jorge Garcia, City Manager
January 2025
2025 State Legislative Agenda