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The City of Santa Ana is proposing increases to its residential/curbside cart refuse collection rates. Customers who would be impacted by these changes are receiving this notice. The City of Santa Ana is dedicated to providing reliable and cost- effective curbside cart refuse collection service to its customers. The proposed increases are structured to directly align Waste Management's (WM) increased cost for composting green waste. This is based on a proposed cost of $go.i3 per ton to process and compost green waste, versus a current cost of $33.13 per ton to use green waste as landfill alternative daily cover. We are seeking feedback to help the City Council make the right choice for the City of Santa Ana and its ratepayers. CHANGE IN LEGISLATIVE MANDATES Landfill operators must cover all disposed solid waste at the end of each day and may use alternative materials in lieu of earthen materials. These materials are referred to as alternative daily cover (ADC). As of January i, 2020, pursuant to Assembly Bill 1594, the use of green waste as ADC does not qualify for diversion credit and will be considered disposal for purposes of measuring a jurisd iction's compliance with other state mandates. Previously, green waste collected from the City's customers by WM was minimally processed by a third -party green waste facility, transferred to landfills to be used as ADC, and the City received diversion credit. To continue receiving diversion credit under the new restrictions of AB 1594, the green waste is now being composted by the third -party green waste facility, but at a higher cost to WM. If the proposed rate adjustments are approved by the City Council, residential/curbside cart refuse rates will increase as set forth in the table below: July 1, 2020 1 $1.90 July 1, 2021 1 $1.50 1 amamrts At the time of the Public Hearing, the City Council will hear and consider all protests and objections to theproposed increases. Oral comments DO NOT qualify as a formal protest unless accompanied by a written protest. Upon conclusion of the hearing, the City Council will evaluate the written protests and consider the adoption of the proposed increases. The City Council isauthorizedtoadopt theproposed increases if written protests do not represent at least a majority of identified parcels subject to the proposed adjustments. If adopted as proposed, the increased rates will become effective on July 1, 2020, and July 1, 2021.