Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Resolution - SOT Trail Rehabilitation Grant
Agenda Item #7.6:
City of Sonoma
RESOLUTION # ___- 2023
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA APPROVING THE
APPLICATION FOR GRANT FUNDS FROM THE RECREATIONAL TRAILS PROGRAM WHEREAS, the Bipartisan Infrastructure Law of 2021 (BIL) provides funds to the State of California for Grants to federal, state, local and non-profit organizations to acquire, develop and/or maintain motorized and non-motorized trail Projects; and WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing Project Application under the program; and
WHEREAS, said procedures established by the State Department of Parks and Recreation require the Applicant to certify by resolution the approval of Application(s) before submission of said Application(s) to the State; and
WHEREAS, the Applicant will enter into a Contract with the State of California to complete the Project(s).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Sonoma hereby:
1. Approves the filing of an Application for the Recreational Trails Program; and
2. Certifies that the Project is consistent with the Applicant’s general plan or the equivalent planning document; and
3. Certifies that said Applicant has or will have available prior to commencement of any work on the Project(s) included in this Application, sufficient funds to operate and maintain the Project(s); and
4. Certifies that the Applicant has reviewed, understands, and agrees to the General Provisions contained in the Contract shown in the Procedural Guide; and
5. Appoints the Public Works Director as agent to conduct all negotiations, execute and submit all documents, including, but not limited to Applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the Project.
6. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.
7. Agrees to commit $50,000 of Park-in-Lieu fees and $33,250 of private donations to meet the matching requirement for the requested grant project amount of $250,000.
PASSED AND ADOPTED, at a Regular Meeting of the City of Sonoma City Council, on this 7th day of June 2023, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
___________________________________
Sandra Lowe, Mayor
ATTEST:
________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.6:
City of Sonoma
Agenda Item Summary
Meeting: City Council - 07 Jun 2023
Department
Administration
Staff Contact
David Guhin, City Manager
Agenda Item Title
Discussion, Consideration, and Possible Action to Adopt a Resolution Approving the Sonoma Garbage Collectors’ 2023-24 Refuse Rates
Summary
The City has received solid waste collection services through a franchise agreement with Sonoma Garbage Collectors Inc. since 1994. The rate setting process in the agreement requires that Sonoma Garbage Collectors Inc. (SGC) submit an annual rate increase request (with documentation based on the Refuse Rate Index) to the City each year for review and approval.
The refuse rate index (RRI) is a method of comparing the collector’s costs on a year-to-year basis to determine whether rates should be increased to account for increased costs. The RRI applies published inflationary indices to categories of costs attributable to the garbage collector’s operations and also includes percentage increases in fees charged to collectors when they deposit refuse at disposal sites (“tipping fees”). The RRI is calculated by multiplying the percentage the specific cost category makes up of the business’ total costs by the inflationary factor for the last 12-month period designated under the agreement. Under this method, when inflationary factors increase, collectors are generally allowed to increase their rates. When inflationary factors are stagnant, there is generally little change in the collectors’ rates from year to year. In addition, there is an allowance for “extraordinary circumstances” that may directly impact the garbage collector’s operations and costs. SGC has been basing its applications for adjustments to customers’ rates on this method since it was established in 2007.
The Exhibit below presents a delineation of the formula and RRI component of the proposed 2023- 24 rate increase request. The overall Refuse Rate Index proposed increase is 9.76%:
REFUSE RATE INDEX (RRI) (Summary) RATE IMPACT
Labor, Maintenance, & Equipment (CPI-All Urban Consumers) 3.57% Motor Fuel (Diesel Fuel PPI) 4.43%
Disposal Fees* (Republic Services) 1.76%
TOTAL 2023 REFUSE COLLECTION RATE INCREASE REQUEST 9.76% * Net disposal fee changes after cost recovery adjustments Based on the proposed increase of 9.76%, as shown below, the new 2023-2024 residential and commercial rates are presented below.
Agenda Item #9.1:
As shown in the Exhibit below, for 32-gallon residential curbside service for FY 2023, the City of Sonoma will have the lowest fee. The fee for the same service in The Springs/Sonoma Valley is 118% higher.
Under the current agreement, there are 3 tiers of approval with differentiated processes based on the amount of the rate percent increase.
Tier 1 – [Refuse Rate Index less than 6%]
A rate adjustment that would establish a rate increase of less than 6% above the immediately preceding Rate Year shall be subject to the administrative review of the City in accordance with the Administrative Review section and need not be acted upon by the City Council. No public hearing shall be required.
Tier 2 – [Refuse Rate Index between 6% and less than 10%] In this situation, City staff bring forward the proposed increase to the City Council for review and direction at a City Council meeting after performing an administrative review to determine whether the proposed rate increase is justified by the application submittal. No formal public hearing process would be required. The Contractor is required to send a notice of the approved rate adjustment with the first billing statement and provide general information as to the rationale to customers.
Agenda Item #9.1:
Tier 3 – [Refuse Rate Index greater than 10%]
An increase of 10% or greater would necessitate a public hearing in front of the City Council after a formal mailed notice following the Proposition 218 parameters.
The proposed Refuse Rate Index for 2023 is 9.76%, therefore, it is a Tier 2 request necessitating approval by the City Council. Pursuant to the City’s contract with SGC under which garbage services are provided, an administrative review has been performed of the 2023-2024 application submitted by SGC which establishes that the rates should be increased up to the 9.76% it is seeking.
Recommended Council Action
Adopt the resolution approving the Sonoma Garbage Collectors 9.76% rate increase for 2023-24.
Alternative Actions
The Council could reject the rate request. This would result in disruptions in trash service and may require the allocation of other funds to support continued trash service.
Financial Impact
None.
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
SGC 2023 - Rate Increase Request Letter
Agenda Item #9.1:
City of Sonoma
RESOLUTION # ______ - 2023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA APPROVING THE SONOMA GARBAGE COLLECTORS’ 2023-24 REFUSE RATES
WHEREAS, the City has received solid waste collection services through a franchise agreement with Sonoma Garbage Collectors Inc. since 1994; and
WHEREAS, the rate setting process in the agreement requires that Sonoma Garbage Collectors Inc. (SGC) submit an annual rate increase request (with documentation based on the Refuse Rate Index) to the City each year for review and approval; and
WHEREAS, the refuse rate index (RRI) is a method of comparing the collector’s costs on a year-to-year basis to determine whether rates should be increased to account for increased costs and is calculated by multiplying the percentage the specific cost category makes up of the business’ total costs by the inflationary factor for the last 12-month period designated under the agreement; and WHEREAS, based on the chart below, which presents a delineation of the formula and RRI component of the proposed 2023-24 rate increase request, the overall Refuse Rate Index proposed increase is 9.76%; and
REFUSE RATE INDEX (RRI) (Summary) Rate Impact
Labor, Maintenance & Equipment (CPI-All Urban Consumers) 3.57% Motor Fuel (Diesel Fuel PPI) 4.43%
Disposal Fees* (Republic Services) *net disposal fee change after cost recovery adjustments 1.76% TOTAL 2023 REFUSE COLLECTION RATE INCREASE REQUEST 9.76% WHEREAS, under the current agreement, there are 3 tiers of approval with differentiated processes based on the amount of the rate percent increase; and
WHEREAS, the proposed Refuse Rate Index for 2023 is 9.76%; therefore, it is a Tier 2 request necessitating approval by the City Council; and
WHEREAS, pursuant to the City’s contract with SGC under which garbage services are provided, an administrative review has been performed of the 2023-2024 application submitted by SGC which establishes that the rates should be increased up to the 9.76% it is seeking.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of Sonoma, State of California, that the 2023-2024 residential and commercial refuse collection rates will be increased by 9.76% as shown in Exhibit A (attached).
PASSED AND ADOPTED, at a Regular Meeting of the City of Sonoma City Council, on this 7th day of June 2023, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
___________________________________
Sandra Lowe, Mayor
ATTEST:
________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #9.1:
EXHIBIT A
CURRENT REFUSE COLLECTION RATES PROPOSED RATES EFFECTIVE JULY 1, 2023
CURRENT RESIDENTIAL RATES PROPOSED RESIDENTIAL RATES
20 Gallon $13.00/month 20 Gallon $14.27/month
32 Gallon $20.87/month 32 Gallon $22.91/month
64 Gallon $43.98/month 64 Gallon $48.27/month
96 Gallon $66.87/month 96 Gallon $73.40/month
CURRENT COMMERCIAL RATES PROPOSED COMMERCIAL RATES
2 yd Bin 1 X Weekly $266.98/month 2 yd Bin 1 X Weekly $293.04/month 3 yd Bin 1 X Weekly $394.12/month 3 yd Bin 1 X Weekly $432.59/month 4 yd Bin 1 X Weekly $522.39/month 4 yd Bin 1 X Weekly $573.38/month 20 yd Debris Box $664.44 20 yd Debris Box $729.29
30 yd Debris Box $892.40 30 yd Debris Box $979.50
Agenda Item #9.1:
SONOMA GARBAGE COLLECTORS
P.O. BOX 400
EL VERANO, CA 95433
April 28, 2023
Mark Linder, Interim City Manager
City of Sonoma
No. 1 The Plaza
Sonoma, CA 95476
Re: 2023 Collection Rate Request
Dear Mr. Linder,
The City's refuse collection Franchise Agreement with Sonoma Garbage Collectors (SGC), as amended in 2019, requires submission by SGC of an annual rate increase request (with documentation based on the Refuse Rate Index) to the City by May 1st each year for review and approval. Following the rate setting process established in that 7th Amendment to the Franchise Agreement, this letter provides SGC’s 2023 Rate Request and supporting documentation.
This year the rate request is above 6%, and below 10%, so per the rate setting process described in the Franchise Agreement;
Section 9, B. Rate Increase of more than 6% but less than 10% In the event that the Contractor proposes a rate adjustment that would result in maximum rates increasing more than 6% but less than 10% over the rates in effect during the immediately preceding Rate Year, the rate adjustment would be submitted to the City Council in order for the City Council to have the opportunity to object to the proposed rate increase.
City staff shall have conducted an administrative review to verify the accuracy of the submittal in accordance with the Administrative Review section set forth below of the Contractor’s application prior to the meeting at which the City Council may object to the proposed rate increase. If the City Council does not object to the proposed rate increase, then the Collector may establish maximum rates that would result in the proposed rate increase. If the City Council objects to the proposed rates, then the rates shall not be increased as proposed and the Contractor shall be directed to establish maximum rates at levels that will not be objected to by the Council. Until such time as a rate adjustment is not objected to by the City Council, the existing rates shall remain in effect. A public hearing shall not be required for a proposed rate increase of less than 10%. Contractor shall send notice of a rate adjustment established under this paragraph to its customers prior to, or with, the first billing statement that includes the adjustment in the billed amount.
The 2023 SGC collection rate request uses the Refuse Rate Index (RRI) which allows for a 2023 rate adjustment of 9.76%.
Agenda Item #9.1:
Page Two
2023 SGC Collection Rate Request Letter
The Refuse Rate Index (RRI) provides for inflationary and disposal cost increases. The RRI calculation table is attached for your review. Recognizing that the County landfill disposal fee increase goes into effect on April 1st, and the new SGC collection rates are intended to begin on July 1st, the rate setting process includes a means to collect this prior uncollected expense through a Retroactive Disposal Cost Recovery fee. For 2023, the weighted County disposal tipping fee impact on rates is 1.43% and the recovery fee for 2023 is 0.36%. The 2022 Retroactive Cost Recovery fee (0.03%) is removed from the new rates starting July 1.
The net disposal cost impact to collection rates is 1.76%.
The following table describes the major components of the requested rate change. 2023 CITY OF SONOMA REFUSE COLLECTION RATE REQUEST
REFUSE RATE INDEX (RRI) (Summary) Rate Impact
Labor, Maintenance & Equipment (CPI-All Urban Consumers) 3.57% Motor Fuel (Diesel Fuel PPI) 4.43%
Disposal Fees* (Republic Services)
*net disposal fee change after cost recovery adjustments
1.76%
TOTAL 2023 REFUSE COLLECTION RATE INCREASE REQUEST 9.76% The next table shows current and the proposed new collection rates for common service levels with the requested 9.76% rate change.
CURRENT REFUSE COLLECTION RATES PROPOSED RATES EFFECTIVE JULY 1, 2023 20 Gallon $13.00/month 20 Gallon $14.27/month
32 Gallon $20.87/month 32 Gallon $22.91/month
64 Gallon $43.98/month 64 Gallon $48.27/month
96 Gallon $66.87/month 96 Gallon $73.40/month
CURRENT COMMERCIAL RATES PROPOSED COMMERCIAL RATES
2 yd Bin 1 X Weekly $266.98/month 2 yd Bin 1 X Weekly $293.04/month 3 yd Bin 1 X Weekly $394.12/month 3 yd Bin 1 X Weekly $432.59/month 4 yd Bin 1 X Weekly $522.39/month 4 yd Bin 1 X Weekly $573.38/month 20 yd Debris Box $664.44 20 yd Debris Box $729.29
30 yd Debris Box $892.40 30 yd Debris Box $979.50
Thank you for consideration of this request and let us know if you need any additional information at this time.
Ken Wells
for Sonoma Garbage Collectors
cc: Travis Wagner, Sustainability Coordinator
Attachments– RRI Calculations, Rate Comparison & History Tables Agenda Item #9.1:
Attachment
2023 City of Sonoma Refuse Rate Index
TABLE 1
SGC 2023 REFUSE RATE INDEX CALCULATION
Category Data Source % Item Weight
Weighted
Percentage
Change
Labor
Series ID: CUURA422SA0 CPI-All Urban Consumers
5.60% 33% 1.85%
Motor Fuel Series ID: WPU057303** Diesel Fuel 65.93% 7% 4.43% Vehicle
Replacement
Series ID: CUURA422SA0 CPI-All Urban Consumers
5.60% 10% 0.58%
Vehicle
Maintenance
Series ID: CUURA422SA0 CPI-All Urban Consumers
5.60% 6% 0.35%
CPI All Items Series ID: CUURA422SA0 CPI-All Urban Consumers 5.60% 14% 0.80% Disposal Annual Tipping Fee Increase at the Sonoma County Central Landfill (effective April 1, 2023) 4.87% 29% 1.43% Disposal - Retroactive Disposal Cost Recovery for 2022 tipping fee increse -0.10% 29% -0.03% Disposal + Retroactive Disposal Cost Recovery for 2023 tipping fee increase 1.22% 29% 0.36% TOTAL RRI ADJUSTMENT effective July 1, 2023 100% 9.76%
**https://fred.stlouisfed.org/series/WPU057303#0
Agenda Item #9.1:
SONOMA GARBAGE COLLECTORS
2023 SONOMA COUNTY RESIDENTIAL REFUSE COLLECTION RATE COMPARISON SERVICE AREA (Service Provider) 32 GAL. WEEKLY RESIDENTIAL SERVICE CLOVERDALE (RECOLOGY) (last rate increase on 12/1/22) $34.00 COTATI (RECOLOGY) (last rate increase on 1/1/23) $26.17 HEALDSBURG (RECOLOGY) (last rate increase on 1/1/23) $29.78 PETALUMA (RECOLOGY) (last rate increase on 7/1/22) $26.25 ROHNERT PARK (RECOLOGY) (last rate increase on
7/1/22) $27.21
SANTA ROSA (RECOLOGY) (last rate increase on 1/1/23) $36.57 SEBASTOPOL (RECOLOGY) (last rate increase on 7/1/22) $26.65 Sonoma Co. (E. SONOMA CO./PETALUMA)
Zone 500 (RECOLOGY) (last rate increase on 4/1/23) $50.04 Sonoma Co. (SEBASTOPOL/S. SONOMA CO.)
Zone 002 (RECOLOGY) (last rate increase on 4/1/23) $48.26
WINDSOR (SONOMA COUNTY RESCOURCE
RECOVERY) (last rate increase on 4/1/20)
$32.69
10 YEAR RATE HISTORY FOR CITY OF SONOMA
YEAR % RATE INCREASE 32 GAL. WEEKLY RESIDENTIAL SERVICE 2013 (effective Jan. 1st 2013) 4.59% $12.50
2013 (effective Oct. 1st 2013) 2.38% $12.80
2015 4.68% $13.39
2016 1.51% $13.59
2017 4.56% $14.21
2018 4.37% $14.83
2019 (effective Oct. 1st 2019) 9.51% $16.24
2020 (effective July 1st 2020) 6.56% $17.31
2021 (effective July 1st 2021) 7.53% $19.69
2022 (effective July 1st 2022) 5.98% $20.87
PROPOSED 2023 (effective
July 1st 2023) 9.76% $22.91
Agenda Item #9.1: