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Public Hearing to Adjust Sanitation Users Charge <br />February 20, 2024 <br />Page 2 <br />4 <br />0 <br />3 <br />4 <br />These actions were based on the outcomes of a detailed cost-of-service study <br />conducted by Stearns, Conrad and Schmidt Consulting Engineers, Inc. (SCS) (Exhibit <br />1). Authorized by the City Council on August 1, 2023, this study ensured compliance <br />with Proposition 218 requirements and provided a thorough examination of the financial <br />landscape and capital needs associated with sanitation services. <br />The Sanitation Fee has remained fixed and without an increase since 1996 and the <br />study underscored the necessity of a fee adjustment driven by inflation, increased <br />service levels, and rising operational costs, including contractual services and street <br />sweeping. The proposed fee adjustment, detailed below, is essential for the continuous <br />delivery of on-demand sanitation services. <br />Current Situation <br />The Sanitation Fee, established in 1991 and last adjusted in 1996, is currently $5.35 per <br />residential, commercial, or industrial unit. The fee supports essential services such as <br />illegal dumping/rubbish removal, roadway cleaning, street sweeping, sanitation and <br />right-of-way inspection and enforcement, and weed abatement. The comprehensive <br />study’s findings determined the need for an adjustment due to inflation, increased <br />service levels, and rising operational costs, including contractual services. <br />Proposed Changes <br />1.Monthly Fee Increase: Proposing an increase from $5.35 to $11.72 per unit, <br />effective July 1, 2024. <br />2.Reserve Establishment: Establishing a 90-day reserve, maintaining <br />approximately 20% of operating and maintenance expenses, in alignment with <br />the City's reserve policy. <br />3.Annual Adjustment: Implementing an annual adjustment of 3.5% to keep pace <br />with inflation and operational costs. <br />Implementation Schedule <br />Any additional increase that exceeds this methodology and the additional user charge <br />increase percentages below, in any year, would be subject to another Proposition 218 <br />noticed public hearing and approval by the City Council. <br />Year Implementation Date Monthly User Charge per Unit <br />Year 1 (FY 2024-25)July 1, 2024 $11.72 <br />Year 2 (FY 2025-26)July 1, 2025 $12.13 <br />Year 3 (FY 2026-27)July 1, 2026 $12.56 <br />Year 4 (FY 2027-28)July 1, 2027 $13.00 <br />Year 5 (FY 2028-29)July 1, 2028 $13.45 <br />This adjustment ensures the continuous delivery of essential sanitation services and <br />allows for improvements and expansions in service areas. The fee adjustment is also