TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Jeff Page, Utilities Manager
Anna Luke-Jones, Solid Waste Administrator
SUBJECT:Title
Discussion of Waste Management's Requests for an Extraordinary Rate Increase and for Modifications to the Diversion Requirements Specified in the City's Franchise Agreement for Integrated Solid Waste Management Services (Public Works Director Lee).
(Estimated Time: 30 Mins.)
DISCUSS AND PROVIDE DIRECTION
Body
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RECOMMENDATION:
Staff recommends that the City Council discuss Waste Management's requests for an extraordinary rate increase and for modifications to the diversion requirements specified in the City's franchise agreement for integrated solid waste management services.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action.
BACKGROUND:
The City has franchised its residential and commercial solid waste services with a private hauler since the early 1980s. The last Request for Proposal (RFP) process for solid waste hauler selection was awarded to Waste Management (WM). The franchise agreement is for seven fiscal years (FY) plus three one-year optional extension years, for a potential of 10 total years (July 1, 2020 through June 30, 2027 + optional FY28 + optional FY29 + optional FY30).
Proposition 218 and Extraordinary Increases
The Proposition 218 process governs a City's ability to raise utility rates, including solid waste rates. The state of California requires that proposed solid waste rates and any rate adjustment methodology be approved through the Proposition 218 process, allowing voters 45 days to submit protests to proposed rate changes. A public hearing is held after the 45-day protest period where the City Clerk announces the number of protests and determines if there is a majority protest (50% + 1) to overturn the proposed rates....
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