REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
SUBJECT
Title
Actions related to initiating the Proposition 218 process for proposed updates to the schedule of rates for residential solid waste services:
1. Direct City staff to initiate the Proposition 218 process for proposed updates to rates for residential solid waste services, and
2. Set a public hearing to consider proposed updates to the rates for residential solid waste services on May 2, 2024, at 5:00 p.m.
Body
RECOMMENDATION
The Department of Public Utilities (DPU) recommends that City Council direct DPU staff to initiate the Proposition 218 notice, protest, and hearing process for proposed updates to the schedule of rates for residential solid waste services and set a public hearing to consider the proposed updates to the rates for residential solid waste services on May 2, 2024, at 5:00 p.m. at City Hall.
EXECUTIVE SUMMARY
The City of Fresno (City) last adopted a rate schedule in 2007, which resulted in rate updates implemented through 2009. No rate changes have been made since September 1, 2009. It is recommended that municipalities evaluate rates every five years to account for increases and/or decreases in expenditures such as fuel, vehicles, labor and new regulations such as Senate Bill 1383 which carries newly imposed regulatory costs. Unfortunately, despite holding vacancies, depleting reserve funds, and delaying necessary equipment updates, the current residential solid waste rate structure is no longer able to generate sufficient revenues to cover these increased costs. Every day the rate structure is not addressed, could lead to steeper increases in the future, and/or a decline in services for our residential customers.
DPU Solid Waste Management Division (SWMD) has developed a five-year schedule of rates for residential solid waste services to cover the five-year forecast of capital costs, operations and maintenance costs, d...
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