PROPOSED RATES FOR SOLID WASTE COLLECTIONS
May 2026
Agenda
Presentation
Solid Waste Collections
Proposition 218
Rate Setting Process
Revenue Requirement
Cost of Service
Rate Design
Proposed Rates
Rates Comparison
Public Hearing
Council Action
Solid Waste Collections
Trash, mixed recycling, and organics collection services inside City limits Collection services = carts or dumpsters
19,000 cart accounts
1,500 dumpster accounts
Services start 3:30 AM & 6 AM
Staffing: 26 operations/field staff, 3 support staff, 4 leads, 1 supervisor, 1 manager Fleet: 36 collection trucks, 2 delivery trucks, and 2 field trucks Street sweeping on public streets
California Constitution Article XIII D
Requirements for setting and implementing property-related rates and fees Requires customer notification + protest hearing
Requires Council action to adopt rates
Requires cost basis for establishing level of rates
“Fees shall not exceed the reasonable cost of providing the service” “Fees shall not exceed the proportional cost of providing the service attributable to the parcel which it is imposed” Proposition 218 Process
Rate Setting Process
PROPOSITION 218
Council Action
Majority Protest Provision
Notice Requirements
Rate Design
Cost of Service
Revenue Requirement
COST-BASED RATES
Rate Setting Process
Revenue Requirement
Rate adjustments are necessary to fund:
Annual O&M expenses
Annual franchise fee to City General Fund
Renewal/replacements/improvements (fleet assets)
Growth/capacity expansion projects (new services)
Regulatory-related projects
Meet ending reserve targets
50% of revenues
Maintain strong reserve levels to mitigate risk related to fund capital improvements, long-term debt issuance, etc.
Revenue Requirement
Future fleet electrification and charging infrastructure +$11,500,000 (estimate) Processing costs
a. Organics +$710,000
b. Mixed Recycling +$180,000
Fleet +$500,000 (16% increase above FY 25/26)
General liability +$260,000 (70% increase above avg)
State regulations, compliance, enforcement, monitoring, and reporting (AB 341, AB 1826, SB 1383) CalPERS retirement pensions
Significant Rate Impacts to Revenue Requirement
Revenue Requirement
Revenue Requirement
Cost of Service
Cost differences exist for cost of service
Classes of service exist based on level of service, in gallons (G) or cubic yards (CY) Simplify dumpster rate structure to reflect container size and # of pickups Cost of Service Results
Rate Design
Maintained separate rates for cart service and dumpster service to provide clarity and consistently with existing customer expectations and rates Continue to aggregate Recycling and Organics with Trash service since all mandated by the State Base charge for requested service
Size + Quantity + Pick Up Frequency
Present and Proposed Rates
Rate Comparisons
Rate Comparisons
Rate Comparisons
Rate Comparisons
Provide number of written protests
Requirements for majority protest (>10,292)
Open Public Hearing (opportunity to comment)
Final call for protests
Close comment period
Determine whether majority protest exists
Provide # of final valid written protests
Re-state requirements for majority protest
If no majority protest, City Council may adopt proposed rates Public Hearing Procedure
Current Commercial Rates Structure