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Consent
Item No. 2.
| MEETING DATE: 06/19/2023 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Elias Saykali, Public Works Director |
| SUBJECT: | AUTHORIZE MAILING OF NOTICE OF PUBLIC HEARING AND SCHEDULE A PUBLIC HEARING FOR PROPOSED RATE ADJUSTMENTS FOR THE REFUSE ENTERPRISE FUND
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RECOMMENDATION:
That the City Council
A. Schedule a public hearing to be held on August 7, 2023, regarding a proposed rate adjustment for the Refuse Enterprise Fund; and,
B. Direct staff to prepare and mail notices to all La Habra property owners regarding the public hearing.
DISCUSSION:
The current agreement with the City's refuse hauler, CR&R Incorporated (CR&R), provides for annual adjustments of refuse rates based on a formula which calculates the changes in the annual consumer price index (CPI), landfill disposal fees, and the producer price index (PPI). These fee elements are used to determine the cost for refuse services, landfill disposal, and fuel purchases. The negotiated formula ensures that rates provide sufficient funding to pay for the provision of refuse services. The current agreement with CR&R was approved on December 3, 2018, and the initial term continues through June 30, 2025, which can then be extended for additional two-year terms at the City’s sole option, through June 30, 2031.
On August 6, 2018, the City Council conducted a public hearing which approved new refuse rates. These rates changes were duly noticed in accordance with Proposition 218 regulations. Government Code Sections 53755 and 53756 allow for the use of rate formulas authorizing automatic adjustments for inflation for a period not to exceed five years. The five-year period approved from the last notice expires in 2023 and now needs to be reviewed and renewed. Staff has prepared a new rate notice which will propose rate adjustments based on the negotiated formula in the City's refuse agreement. If approved by City Council, new refuse rates will take effect on August 8, 2023. The notice includes information regarding new fees and services, as described below:
1) Commercial - Cart Rollout Service: This is an optional fee upon request by a business account and will pay for a service to have carts rolled out to the street curb for servicing. For certain accounts, this fee may be required to comply with State of California SB 1383 recycling laws.
2) Other Fees - Recycling Contamination Fee for Carts – This fee is required to comply with SB 1383 laws and will apply to both residential and commercial cart services only when carts have been contaminated with the wrong waste stream.
3) Other Fees - Recycling Contamination Fee for Bins – This fee is required to comply with SB 1383 laws and will apply to all bin services only when bins have been contaminated with the wrong waste stream.
4) Other Fees - Commercial Rolloff Account Setup Fee – This fee is a one time setup fee for commercial rolloff accounts only.
5) Other Fees - Commercial Cart Delivery Fee – This is a one-time fee per container.
6) Other Fees - Commercial Bin Delivery Fee – This is a one-time fee per container.
In order to implement new refuse rates, the City is required to hold a public hearing in accordance with Proposition 218 regulations, which requires a 45-day notice of the public hearing sent to property owners within the City of La Habra service area. The sample Proposition 218 notice (Attachment 1) details the proposed adjusted rates as well as new services that are being proposed. If this rate notice is approved by City Council, staff will schedule the public hearing for the Regular City Council Meeting of August 7, 2023.
On August 6, 2018, the City Council conducted a public hearing which approved new refuse rates. These rates changes were duly noticed in accordance with Proposition 218 regulations. Government Code Sections 53755 and 53756 allow for the use of rate formulas authorizing automatic adjustments for inflation for a period not to exceed five years. The five-year period approved from the last notice expires in 2023 and now needs to be reviewed and renewed. Staff has prepared a new rate notice which will propose rate adjustments based on the negotiated formula in the City's refuse agreement. If approved by City Council, new refuse rates will take effect on August 8, 2023. The notice includes information regarding new fees and services, as described below:
1) Commercial - Cart Rollout Service: This is an optional fee upon request by a business account and will pay for a service to have carts rolled out to the street curb for servicing. For certain accounts, this fee may be required to comply with State of California SB 1383 recycling laws.
2) Other Fees - Recycling Contamination Fee for Carts – This fee is required to comply with SB 1383 laws and will apply to both residential and commercial cart services only when carts have been contaminated with the wrong waste stream.
3) Other Fees - Recycling Contamination Fee for Bins – This fee is required to comply with SB 1383 laws and will apply to all bin services only when bins have been contaminated with the wrong waste stream.
4) Other Fees - Commercial Rolloff Account Setup Fee – This fee is a one time setup fee for commercial rolloff accounts only.
5) Other Fees - Commercial Cart Delivery Fee – This is a one-time fee per container.
6) Other Fees - Commercial Bin Delivery Fee – This is a one-time fee per container.
In order to implement new refuse rates, the City is required to hold a public hearing in accordance with Proposition 218 regulations, which requires a 45-day notice of the public hearing sent to property owners within the City of La Habra service area. The sample Proposition 218 notice (Attachment 1) details the proposed adjusted rates as well as new services that are being proposed. If this rate notice is approved by City Council, staff will schedule the public hearing for the Regular City Council Meeting of August 7, 2023.
FISCAL IMPACT/SOURCE OF FUNDING:
A staff report detailing the fiscal impacts of the proposed changes in rates and fees, along with proposed program changes, will be presented to Council at the Public Hearing. Printing and mailing costs for this notice will be approximately $9,000 and the FY 2022-2023 Refuse budget has sufficient funding available to pay for this expense.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
GENERAL PLAN RELEVANCE:
ED 9.1 Balanced Fiscal Practices.
WR 1.1 Adequate Services and Waste Collection Facilities
WR 1.2 AB 939 and 50 Percent Diversion.
WR 1.4 Waste Diversion.
WR 2.1 AB 341 and 75 Percent Recycling.
WR 2.6 Waste Hauler.
WR 2.7 Compost Markets and Distribution.
CITY COUNCIL GOALS AND OBJECTIVES:
Goal 2 – Management of Public Revenues and Fiscal Assets
Objective A – Closely monitor revenues, expenditures, and fiscal trends to ensure the City’s long-term fiscal stability.
Goal 7 – Integration of Excellence in City Operations
Objective B – Promote and practice a high standard of trust, ethics, and values among our employees and the public we serve.
Objective C – Provide and maintain quality public services for our residents, businesses, and visitors.
ED 9.1 Balanced Fiscal Practices.
WR 1.1 Adequate Services and Waste Collection Facilities
WR 1.2 AB 939 and 50 Percent Diversion.
WR 1.4 Waste Diversion.
WR 2.1 AB 341 and 75 Percent Recycling.
WR 2.6 Waste Hauler.
WR 2.7 Compost Markets and Distribution.
CITY COUNCIL GOALS AND OBJECTIVES:
Goal 2 – Management of Public Revenues and Fiscal Assets
Objective A – Closely monitor revenues, expenditures, and fiscal trends to ensure the City’s long-term fiscal stability.
Goal 7 – Integration of Excellence in City Operations
Objective B – Promote and practice a high standard of trust, ethics, and values among our employees and the public we serve.
Objective C – Provide and maintain quality public services for our residents, businesses, and visitors.