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Home My WebLink About06 SET A PUBLIC HEARING FOR JUNE 4, 2024 PURSUANT TO THE REQUIREMENTS OF PROPOSITION 218 TO CONSIDERDocuSign Envelope ID: 13A3210E-57C9-4C98-89FD-81FA6EA8B41C 0 • Agenda Item 6 - AGENDA REPORT Reviewed: os City Manager Finance Director MEETING DATE: APRIL 16, 2024 TO: NICOLE BERNARD, ACTING CITY MANAGER FROM: MICHAEL GRISSO, ACTING DIRECTOR OF PUBLIC WORKS SUBJECT: SET A PUBLIC HEARING FOR JUNE 4, 2024 PURSUANT TO THE REQUIREMENTS OF PROPOSITION 218 TO CONSIDER THE ESTABLISHMENT OF SOLID WASTE RATES FOR FY 2024/25 SUMMARY Pursuant to Proposition 218, a public hearing is required to set solid waste rates. Staff is requesting the City Council set a public hearing for June 4, 2024 at 7:00 p.m. to consider rates for FY 2024/25 and confirm the rate adjustment methodology for the remainder of the City's agreement with CR&R. RECOMMENDATION Staff recommends that the City Council set a public hearing for June 4, 2024 at 7:00 p.m. to consider rate adjustments for FY 2024/25 and confirm the rate adjustment methodology for the remainder of the City's agreement with CR&R. FISCAL IMPACT There is no fiscal impact associated with this item. CORRELATION TO THE STRATEGIC PLAN This item contributes to the fulfillment of the City's Strategic Plan Goal E, Strategy 2c by providing accurate, easy to understand information that will help customers and be useful to the community. BACKGROUND Proposition 218 requires the City to conduct a formal protest hearing so that all property owners will have the opportunity to comment or dissent on residential and commercial solid waste rates. CR&R's current rate structure was adopted by the City Council on February 19, 2019 after a formal protest hearing was conducted. Per Section 53756 of the California Government Code, an agency providing refuse collection service may adopt a schedule of fees or charges authorizing automatic adjustments for inflation if the schedule of fees complies with the following: 1. Is for a period not to exceed five years, 2. Includes a clearly defined formula to adjust for inflation, so long as the adjustment does not exceed the cost of providing the service, and 3. Notice of any adjustment pursuant to the schedule shall be provided not less than 30 days before the effective date of the adjustment. The FY 2023/24 rates represent the fifth and final adjustment authorized by the 2019 City Council action. The City's agreement with CR&R contains a rate adjustment methodology and allows for annual rate adjustments each July 1. A public hearing is required to adjust rates effective July 1, 2024 and for the remainder of the City's agreement with CR&R. DocuSign Envelope ID: 13A3210E-57C9-4C98-89FD-81FA6EA8B41C Set Public Hearing for FY24/25 Solid Waste Rates April 16, 2024 Page 2 Staff is recommending the City Council set a public hearing for June 4, 2024 to consider rates for FY 2024/25 and confirm the rate adjustment methodology for the remainder of the City's agreement with CR&R. T"" -%-AOq Michae risso, Acting Director of Public Works Attachment: Draft Public Notice with Proposed Rates PUBLIC HEARING REGARDING PROPOSED SOLID WASTE COLLECTION RATES FOR ALL SOLID WASTE CUSTOMERS IN TUSTIN NOTICE IS HEREBY GIVEN that on Tuesday June 4, 2024 at 7 p.m., or as soon thereafter as the matter may be heard, the City Council of the City of Tustin will hold a Public Hearing in the Tustin City Council Chamber located at 300 Centennial Way to consider proposed solid waste and recycling collection rates for Fiscal Year 2024-2025, with an effective date of July 1, 2024. The City Council will hold a public hearing to consider adjusting rates for residential, commercial and multifamily solid waste and recycling collection services and authorizing adjustments for the next five (5) years. A written notice will be mailed to all parties subject to future annual rate adjustments, not less than 30 days prior to the effective date of the adjustment. ABOU-r OROPOSITION 218 In 1996, California voters approved Proposition 218, which establishes a specific process for cities to impose or increase certain types of fees. Proposition 218 provides that certain "Property Related" rates are subject to a noticed public hearing and "majority protest" process. This notice is being provided to you pursuant to Section 6 of Article XIIID of the California Constitution (Proposition 218) and Section 53755 of the Government Code which require that notification be sent 45 days in advance of the public hearing, to the address to which the City customarily provides the refuse collection service, or the known mailing address of the property owner, for each identified parcel upon which any new or increased service rate or charge is being proposed. Any property owner whose property will be subject to the imposition of the proposed solid waste and recycling rates and any tenant directly responsible for the payment of such rates (i.e., a customer of record) may submit a written protest to the proposed changes. Written protests may be submitted by mail or in person to the City Clerk's Office at 300 Centennial Way, Tustin, CA 92780 or at the Public Hearing (date and time noted above), provided they are received prior to the conclusion of the public comment portion of the Public Hearing. A valid protest must include all of the follow information: A statement of protest ("I protest" will suffice); Service address or Assessor parcel number (by assessor's parcel number, street address, or customer account); Written evidence (example: current copy of a utility bill) that the person is the property owner, if the person was not shown on County of Orange's last equalized assessment roll as the property owner; and Name and signature of the property owner submitting the protest (photocopies will not be accepted). The City Clerk will accept only one protest per parcel. If written protests against the proposed rates are not presented by a majority of identified parcels upon which the proposed rates are to be imposed, the City Council will be authorized to adopt the proposed rates. If adopted, the proposed solid waste collections rates will be effective July 1, 2024. GET INVOLVED The City of Tustin is committed to proactive, two-way communication throughout the rate adjustment process to maximize awareness and minimize public uncertainty. 00 Attend the public hearing on Tuesday, June 4 at 7 p.m. at Tustin City Council Chamber, 300 Centennial Way. Call with any questions at (714) 573-3037 Email Acting Assistant Director of Public Works, Stacey Cuevas at scuevas@tustinca.org m-1919JMI■IMMAIqr_\wAR►7Iula `v The City of Tustin contracts with CR&R Environmental Services to provide trash and recycling collection throughout the community. Each year, rates are evaluated based on CR&R's actual cost of providing solid waste collection service to Tustin customers. To cover the costs associated with the collection and disposal of solid waste, the City of Tustin is proposing a rate adjustment which, if adopted, would go into effect July 1, 2024. The proposed rates are calculated using Producer Price Index (PPI) adjustments over the 12-month period ending October 31, 2023 and annual disposal costs. Rate factors include the County of Orange landfill gate tipping fee increase of 3.24%, decrease in natural gas PPI of 54.3% and increase in finished goods less food and energy of 5.4%. These expenses have been incorporated into the proposed rates per a formula defined in CR&R's agreement. iULy ?n?,4 PROPOSED SOLID WASTE RATE INCREASE r C crass _ P - � r , 1 I r. �• ..�I' o- ORMS. environmental servic �•�/—.. NANRAL G/31+OWERED I CLEAR AIR VEHICLE i i IMP a.:• C , S .M 1? 4C # I SED- SOLID WASTE RATE ADJUSTMENT EFFECTIVE J U LY 1, 2024