I. RECOMMENDATION:
Financial Services Director recommends the City Council adopt Resolution No. 4111 postponing the Increase of the Refuse Rate from July 1, 2022 to September 1, 2022.
II. BACKGROUND:
City council approved Resolution No. 4063, on February 17, 2022. This resolution approved a new Municipal Solid Waste Franchise Agreement with Mid Valley Disposal LLC, and increased all customer rates ten percent. The stated date for the rate increase was July 1, 2022.
III. DISCUSSION:
After approval of Resolution No. 4063, the City Attorney recommended following the Proposition 218 procedure for the refuse rate increase. Doing so required sending rate increase notices to all customers providing them the opportunity to protest, specifying a rate hearing date, and waiting 45 days before the hearing. Notices were issued at the end of June such that the rate hearing could be in later August, after the 45 days. As a result, providing there is no majority protest at the hearing, the rates may become effective September 1, 2022. This is two months later than identified in the original resolution, therefore the change needs to be approved by city council.
IV. ALTERNATIVES:
As staff has been aware of the need to comply with the Proposition 218 process, the higher rates have not been implemented. The alternative of not approving this proposed resolution would leave a gap in rates for July and August.
V. FISCAL IMPACT:
The amount of increase refuse rates not collected during July and August is approximately $15,000 each month. |