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Resolution No. 2024-XXX <br />Page 1 of 5 <br />RESOLUTION NO. 2024-XXX <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA <br />ADJUSTING THE RATE OF THE SANITATION SERVICES USERS <br />CHARGE FOR ROADWAY CLEANING AND ENVIRONMENTAL <br />SANTIATION SERVICES PROVIDED BY THE CITY OF SANTA ANA <br />WHEREAS, Chapter 18 of the Santa Ana Municipal Code (“SAMC”), Article XII, <br />Section 18-600 et seq., authorizes the City to make a monthly charge to each <br />residential, commercial, industrial, manufacturing or other units which are located within <br />the City for street cleaning services and other environmental sanitation services and to <br />establish those rates by resolution; and <br />WHEREAS, this Resolution adjusting street cleaning services and other <br />environmental sanitation services shall apply only to SAMC Chapter 18, Article XII, <br />Sanitation Services Users Charge; and <br />WHEREAS, the rate structure for street cleaning services and other <br />environmental sanitation services includes several municipal utility services customer <br />classes: residential, multifamily, commercial, industrial, manufacturing and other units <br />located within the City; and <br />WHEREAS, on August 1, 2023, the City Council authorized City staff to retain <br />Stearns, Conrad and Schmidt Consulting Engineers, Inc. (“SCS”), an environmental <br />consulting and contracting firm, to determine whether rates for services charges are <br />sufficient to meet increased costs of services, and to perform a detailed cost-of-service <br />study to ensure compliance with Proposition 218 requirements and provided a thorough <br />examination of the financial landscape and capital needs associated with sanitation <br />services; and <br />WHEREAS, the Sanitation Services Users Charge Cost of Service Study Report <br />(“Study”) prepared by SCS (a copy of which is available for inspection at the City and <br />also posted on the City’s website), set the basis upon which the Charges were <br />calculated, which included a five-year financial projection of anticipated growth, fund <br />balances and reserve targets, revenues, operations and maintenance expenses, <br />vehicle/equipment replacement expenses, and capital spending; and <br />WHEREAS, the Study determined that the City’s current user charge revenues <br />will no longer be sufficient to meet the projected financial needs of the City to fund its <br />sanitation services operations. Therefore, a five-year financial management plan was <br />calculated and SCS determined that sanitation services user charge per unit should <br />increase to a monthly charge of $11.72 per month in July 2024, billed bi-monthly as <br />$23.44 per unit per bill. An inflationary-like increase of approximately 3.50% is <br />anticipated to be necessary each July from 2025 to 2028; and <br />EXHIBIT 2