Resolution No. 2024-XXX
RES
OLUTION NO. 2024-XXX
A RES
OLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
ADJUSTING THE RATE OF THE SANITATION SERVICES USERS
CHARGE FOR ROADWAY CLEANING AND ENVIRO NMENTAL
SANTIATION SERVICES PROVIDED BY THE CITY OF SANTA ANA
WHER
EAS, Chapter 18 of the Santa Ana Municipal Code (“SAMC”), Article XI I, Section 18-600 et seq. , authorizes the City t o make a monthly charge to each residential, commercial, industrial, manufacturing or other units which are located within the City for street cleaning services and other environmental sanitation services and to establish those rates by resolution; and
WHER
EAS, this Resolution adjusting street cleaning services and other environmental sanitation services shall apply only to SAMC Chapter 18, Article XII, Sanitation Services Users Charge; and
WHER
EAS, the rate structure for street cleaning services and other environmental sanitation services includes several municipal utility services customer classes: residential, multifamily, commercial, industrial, manufacturing and other units located within the City; and
WHER
EAS, on August 1, 2023, the City Council authorized City staff to retain Stearns, Conrad and Schmidt Consulting Engineers, Inc. (“SCS”) , an environmental consulting and contracting firm , to determine whether rates for services charges are sufficient to meet increased costs of services, and to perform a detailed cost -of-service study to ensure compliance with Proposition 218 requirements and provided a thorough examination of the financial landscape and capital needs associated with sanitation services; and
WHE
REAS, the Sanitation Services Users Charge Cost of Service Study Report (“Study”) prepared by SCS (a copy of which is available for inspection at the City and also posted on the City’s website), set the basis upon which the C harges were calculated, which included a five- year financial projection of anticipated growth, fund balances and reserve targets, revenues, operations and maintenance expenses, vehicle/equipment replacement expenses, and capital spending; and WHER
EAS, the Study determined that the C ity’s current user charge revenues will no longer be sufficient to meet the projected financial needs of the City to fund its sanitation services operations. Therefore, a five- year financial management plan was calculated and SCS determined that sanitation services user charge per unit should increase to a monthly charge of $11.72 per month in July 2024, billed bi -monthly as $23.44 per unit per bill. An inflationary -like increase of approximately 3.50% is anticipated to be necessary each July from 2025 to 2028; and EXHIBIT 2
Resolution No. 2024-XXX
WH
EREAS, the Sanitation Services Users Charge (“ Charges”) is billed on a bi - monthly billing basis; and
WH
EREAS, the Charges are property-related fees within the meaning of Article XIII D of the California Constitution; and
WH
EREAS, the revenues derived from the Charges will not exceed the funds required to provide the services for which the Charges are imposed, and will be used exclusively for street cleaning services (e.g. roadway cleaning and street sweeping) and other environmental sanitation services such as illegal dumping/rubbish removal, alley and sidewalk cleaning, power washing, sanitation and right -of-way inspection and enforcement, and weed abatement; and
WH
EREAS, the Charges are equitable to all customer classes; and WH
EREAS, Article XIII D, section 6 of the California Constitution (“Article XIII D”) requires that prior to imposing new or increased Charges, the City shall provide written notice by mail of the new or increased Charges to the record owner of each parcel upon which the Charges are proposed for imposition and any responsible party directly liable for payment of the Charges , the amount of the Charges proposed to be imposed on each parcel, the basis upon which the Charges w ere calculated, the reason for the Charges, and the date, time, and location of a public hearing on the proposed Charges ; and
WH
EREAS, on December 5, 2023, the City Council authorized the initiation of the process to adjust the Sanitation Fee in compliance with California’s Proposition 218 requirements; and
WHER
EAS, on December 27, 2023, the City distributed notices as required by Article XIII D regarding the City Council’s consideration of the Charges at a public hearing scheduled for February 20, 202 4, to all property owners and customers of record whose parcels receive sanitation services and would be subject to the proposed user charge adjustments in accordance with Article XIII D, Section 6(a)(1) of the California Constitution and Government Code Section 53755; and WH
EREAS, on February 20, 2024, the City Council held a duly noticed public hearing on the Charges contained in this Resolution within Exhibit A, and at that time invited oral and written comments from the public; and
WH
EREAS, upon close of said public hearing, the City did receive ________ written protests to the Charges, and therefore there has been no majority protest; and WH
EREAS, the City Council now desires to establish and impose the Charges as set forth in Exhibit A , commencing on July 1, 2024 and subject to annual user charge adjustments through July 1, 2028; and
Resolution No. 2024-XXX
WH
EREAS, any additional increase that exceeds th e user Charge increases in Exhibit A would be subject to another Proposition 218 noticed public hearing and approval by the City Council.
NO
W, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows:
Sec
tion 1. T he adoption of this Resolution falls within a statutory exemption from environmental review pursuant to sections 15273, 15060(c)(2) of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA), which pertain to the establ ishment, modification, structuring, restructuring, or approval of rates and charges by public agencies which the public agency finds are for the purpose of meeting operating expenses, and pertain to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and that are not defined as a project under CEQA Regulations.
Sec
tion 2. A fter considering the material presented in Exhibit A , the City Council hereby finds as follows:
(a) R
evenues derived from the Charges do not exceed the funds required to provide the property-related service;
(b) Revenues derived from the Charges shall not be used for any purpose other than that for which the Charges are imposed;
(c) The amount of the Charges imposed upon any parcel or person does not exceed the proportional cost of services attributable to the parcel; (d) The Charges are for services actually used by, or immediately available to, the owner of the property upon which the Charges are imposed; and (e) The Charges will not be expended for general governmental purposes.
Sec
tion 3. A fter receiving public comment and testimony on the Charges, and absent a majority protest to the Charges, the Charges are hereby approved to take effect on the dates, in the amounts, and at the rates described in Exhibit A, attached and incorporated herein by this reference.
Sec
tion 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. To the extent any other resolution of the City conflicts with the provisions set forth herein, it is the explicit intent of the City Council that the provisions of this Resolution shall supersede.
[S
ignatures on the following page]
Resolution No. 2024-XXX
ADO
PTED this ____ day of ___________________, 2024.
Valer ie Amezcua
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
Jose Montoya
Assistant City Attorney
AYES:
Councilmembers
NO
ES: Councilmembers
ABST
AIN: Councilmembers
NO
T PRESENT: Councilmembers _
Resolution No. 2024-XXX
CE
RTIFICATE OF ATTESTATION AND ORIGINALITY
I, Jennifer L. Hall, City Clerk, do hereby certify the attached Resolution No. 2024-_____ to be the original resolution adopted by the City Council of the City of Santa Ana on _____________________, 2024.
Date:
City Clerk
City of Santa Ana
EXHIBIT A
SAN
ITATION SERVICES USERS CHARGES
Year 1
FY 2024-25
Year 2
FY 2025-26
Year 3
FY 2026-27
Year 4
FY 2027-28
Year 5
FY 2028-29
Implementation
Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Monthly User
Charge per Unit $11.72 $12.13 $12.56 $13.00 $13.45