TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Tony Olmos, Public Works Director
Sona Coffee, Environmental Programs Manager
SUBJECT:Title
Resolution to Set a Public Hearing for July 7, 2015 to Consider Increasing Solid Waste Fees (Public Works Director Olmos).
ADOPT; SET JULY 7, 2015 FOR PUBLIC HEARING
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council adopt Resolution 15-0021 setting a public hearing for July 7, 2015 to consider increasing solid waste fees for the purpose of paying the costs associated with a recycling food waste program.
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FISCAL IMPLICATIONS:
The only costs associated with adopting a resolution setting a public hearing will be the cost of providing notice, which has been budgeted.
BACKGROUND:
On June 1, 2011, Waste Management was awarded a franchise and entered into a new solid waste agreement with the City. The agreement required Waste Management to create and manage at no additional charge a commercial and residential food waste diversion pilot program for six months. Although the contract specified a six-month pilot program, Waste Management extended the pilot from six months to two and a half years at no additional charge as they awaited completion of their new food waste processing facility, the CORe.
At the November 5, 2013 City Council meeting, Waste Management presented an update to City Council on the food waste diversion pilot program. To date, there are 25 businesses and 777 residential homes participating in the food waste diversion pilot program.
In compliance with Waste Management's solid waste agreement with the City and subsequent Assembly Bill AB1826, the City requested a proposal from Waste Management to provide a citywide food waste program. Waste Management provided a proposal that outlines several waste diversion programs and price options for both commercial and residential customers. The Waste Management Food Waste Diversion Program Proposal is available in Attachment 1.
If implemented, there will be additional costs associated with a Waste Management Food Waste Diversion Program. Proposition 218 requires a duly noticed public hearing prior to the imposition or increase of general taxes, assessments, and certain user fees, including fees paid by rate payers for refuse services.
For the commercial program, Waste Management proposes an expansion of the current commercial pilot program at a proposed 3.6% fee increase to all commercial and roll-off customers. For an example, the most common commercial service level is one 3-yard trash bin serviced 3 times per week. Based on current rates, the fee for this service level, if approved after the public hearing, would be increased by approximately $8 per month.
The proposed residential program is an expansion of the current residential food waste pilot program, at a proposed 3% fee increase to all residential customers. Based on current rates, the fee for a resident with a 64-gallon trash cart, if approved after the public hearing, would increase by approximately less than $0.50 per month.
DISCUSSION:
Developing a residential and commercial food waste recycling program to reduce the amount of waste sent to the landfill has been a target program to the City since the 2009 Environmental Task Force. To offer the food waste recycling service, Waste Management proposes to increase fees by 3.6% for commercial customers, and 3% for residential customers. If approved, the fees would apply to all commercial and residential customers and are not subscription-based.
The City Council must first set a public hearing date to consider a fee increase prior to increasing fees. Proposition 218 requires a mailed notice to each prospective payer of the proposed fee increase, followed by a public hearing within forty-five days of the mailing. Unless protests are received from a majority of fee payers (50% + 1), the City Council may adopt the increased fees by a majority vote at its public hearing.
If the Council so authorizes, notices will go out no later than May 18 to set a public hearing on July 7, 2015. If the rates are approved by the City Council on July 7, 2015 after the public hearing, the start of the food waste program is expected on August 1, 2015.
PUBLIC OUTREACH/INTEREST:
Waste Management has continually reached out to its commercial and residential customers to gain comments on the food waste recycling pilot program, which have been positive. For the roll-out of the full program, Waste Management is developing a comprehensive outreach program to fully engage its customers and encourage participation in the program.
CONCLUSION:
Therefore, staff recommends that the City Council adopt Resolution 15-0021 (Attachment 2) to set a public hearing on July 7, 2015 to consider increasing waste fees to pay for a food waste recycling program.
Attachments:
1. Waste Management Food Waste Diversion Program Proposal
2. Resolution 15-0021