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HomeMy WebLinkAboutAgenda Report - April 5, 2023 G-01 PHCITY OF 61 l CALIFORNIA COUNCIL COMMUNICATION AGENDA ITEM (3 1 AGENDA TITLE: Continued Public Hearing to Consider Adopting Resolution Setting Future Solid Waste Rates Pursuant to Proposition 218 for Residential Customers MEETING DATE: April 5, 2023 PREPARED BY: Public Works Director RECOMMENDED ACTION: Continued public hearing to consider adopting resolution setting future solid waste rates pursuant to Proposition 218 for residential customers. BACKGROUND INFORMATION: CalRecycle has adopted regulations consistent with the mandates associated with Senate Bill 1383. The mandates are designed to achieve the organic waste reduction goals established in Section 39730.6 of the Health and Safety Code through a 50 percent reduction in the level of statewide disposal of organic waste from the 2014 level by 2020; and a 75 percent reduction in the level of statewide disposal of organic waste from the 2014 level by 2025. This is an unfunded State mandate. The City is required to comply with these regulations to assist the State in achieving the organic waste reduction levels outlined above. The main requirements resulting from the regulations include the adoption of an enforcement ordinance, implementation of mandatory residential and commercial food waste collection, and education and outreach. Jurisdictions are required to implement SB 1383 by January 1, 2022. At the February 16, 2022 meeting, Council adopted the Notice of Intent to Comply (NOIC). By filing the NOIC, CalRecycle is authorized to waive civil penalties until January 1, 2023 if a jurisdiction intends to comply with the SB1383 requirements. On March 2, 2022, Council introduced an ordinance amending the Lodi Municipal Code Title 13 "Public Health Services," which allows the City to enforce SB1383 requirements on business and residents beginning January 1, 2024. Staff is currently working with Waste Management to provide substantial outreach to our customers regarding organics recycling requirements with residential organics recycling service to commence by April 1, 2023. Staff is also working with Waste Management on a proposed contract extension that will incorporate the new SB 1383 requirements. Proposed rate schedules and information were supplied to the City Council at the January 17, 2023 Shirtsleeve meeting prior to mailing Proposition 218 protest hearing notices (English and Spanish translations) and preliminary to a public hearing to consider adopting the proposed rate schedules for the period from April 1, 2023 through March 31, 2028. The rate schedules set maximum limits on the solid waste rates for the next five years, and each year the City Council will be requested to approve the actual rates to be implemented. At the public hearing on March 15, 2023, the City Council will be asked to receive public comment; adopt resolutions setting future adjustments to solid waste rates with limits for the period April 1, 2023 through March 31, 2028. At the March 15, 2023 Council Meeting, staff conducted a Public Hearing to consider adopting a resolution setting future solid waste rates pursuant to Proposition 218 for residential customers. The Public Works Director presented information regarding proposed rates for solid waste to Council and the public in attendance. The public hearing was opened and 13 members of the public spoke on the subject. Council members commented and asked questions of Public Works and Waste Management staff. Mayor Hothi called for any last protests prior to closing the public hearing. Once the public hearing was closed, staff tallied APPROVED :�ihveEf T�. 'Y �i ]e.fu Pill Stephen Schwabauer, City Manager \\lodi.gov\Home\Users\tchristy\Solid Waste\CCContPHProp218.docx 3/29/2023 Continued public hearing to consider adopting resolution setting future solid waste rates pursuant to Proposition 218 for residential customers April 5, 2023 Page 2 potential protests in accordance with Proposition 218, and announced 369 protests were received. Council voted to continue the matter for discussion and further action until April 5, 2023. In response to Council direction, staff and Waste Management propose to provide low volume, 35 gallon service to the first 1,000 customers that sign up between May 8, 2023 and May 12, 2023. The low volume 35 gallon rate is only available to customers that have a 35 gallon cart as of April 5, 2023. Staff and Waste Management will provide outreach regarding eligibility requirements from April 6, 2023 through May 12, 2023. To accommodate the low volume 35 gallon rate outreach and sign up timeline, staff and Waste Management propose the new rates for all customers be implemented on May 15, 2023. FISCAL IMPACT Rate adjustments are needed in order to fund the State mandates of Senate Bill 1383. FUNDING AVAILABLE Not applicable. -�"'TOU'O Charles E. Swimley, Jr. Public Works Director CES/TC/cd W EXHIBIT A CITY OF LODI MULTI -CART CURBSIDE REFUSE RATES EFFECTIVE MAY 15, 2023 THROUGH MARCH 31, 2024 Notes: *Applies to Single Family Dwellings Only **Available to first 1,000 Customers with 20 or 35 Gal Carts that sign up during enrollment period of May 8 - 12, 2023 ***Qualified and approved by City of Lodi Utility Department ****MSW cart may be automatically upsized after 3 incidents within a six (6) month period. Current New Services Offered Monthly Adjustment Monthly Rate Rate 1. 64 GALLON REFUSE CART 1X PER WEEK (35 Gal Legacy Rate) 1 Refuse Cart $30.60 $5.00 $35.60 2 Refuse Carts $76.48 ($5.28) $71.20 3 Refuse Carts $122.37 ($15.57) $106.80 4 Refuse Carts $168.31 ($25.91) $142.40 2. 64 GALLON REFUSE CART 1X PER WEEK 1 Refuse Cart $46.06 ($2.00) $44.06 2 Refuse Carts $115.04 ($26.92) $88.12 3 Refuse Carts $184.01 ($51.83) $132.18 3. 96 GALLON WASTE CART 1X PER WEEK 1 Refuse Cart $100.37 ($51.31) $49.06 2 Refuse Carts $200.76 ($102.64) $98.12 3 Refuse Carts $301.14 ($153.96) $147.18 4. DUPLEX AND MULTI -FAMILY, AND MOBILE HOMES Monthly rate is reduced one (1) dollar from above base rates ($1.00) $0.00 ($1.00) 5. 64 GALLON REFUSE USER 1X PER WEEK* (20 Gal Legacy Rate) $20.82 $5.00 $25.82 1 Refuse Cart 6. 35 GAL LOW VOLUME RATE** $0.00 $0.00 $30.60 1 Refuse Cart 7. ADDITIONAL 64 GALLON RECYCLING CARTS Second and Third Recycling Cart $0.00 $0.00 $0.00 Fourth and Each Additional Cart $16.54 $0.00 $16.54 8. ADDITIONAL 96 GALLON YARD AND GARDEN CARTS Second and Third Yard and Garden Cart $0.00 $0.00 Fourth and Each Additional Yard and Garden Cart $16.54 $0.00 $16.54 9. BACK YARD SERVICE*** Monthly service charge $16.95 $0.00 $16.95 Qualified Disabled $0.00 $0.00 $0.00 10. Overage - Waste, Recycling, and Organics Residential Carts**** Incidents 1 and 2 $0.00 $0.00 $0.00 Incidents 3+ $0.00 $12.38 $12.38 11. Contamination - Recycling, and Organics Residential Carts**** Incidents 1 and 2 $0.00 $0.00 $0.00 Incidents 3+ $0.00 $15.02 $15.02 Notes: *Applies to Single Family Dwellings Only **Available to first 1,000 Customers with 20 or 35 Gal Carts that sign up during enrollment period of May 8 - 12, 2023 ***Qualified and approved by City of Lodi Utility Department ****MSW cart may be automatically upsized after 3 incidents within a six (6) month period. wCITY OF LODI CONTAINER RATES EFFECTIVE THROUGH MARCH 31, 2024 New Monthly Rates WEEKLY SERVICE - ONE (1) CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $159.98 $297.61 $681.94 $1,230.74 $1,943.97 $2,821.63 2 $254.19 $463.74 $969.26 $1,672.16 $2,572.40 $3,669.95 3 $348.35 $629.77 $1,256.52 $2,113.53 $3,200.77 $4,518.23 4 $442.50 $795.83 $1,543.84 $2,554.93 $3,829.18 $5,366.57 5 $536.72 $961.90 $1,831.13 $2,996.38 $4,457.64 $6,214.80 6 $630.91 $1,127.98 $2,118.39 $3,437.80 $5,085.97 $7,063.11 7 $725.10 $1,294.11 $2,405.70 $3,879.19 $5,714.36 $7,911.41 8 $819.28 $1,460.11 $2,693.04 $4,320.53 $6,342.77 $8,759.72 9 $913.44 $1,626.26 $2,980.32 $4,761.98 $6,971.21 $9,608.01 10 $1,007.67 $1,792.31 $3,267.58 $5,203.38 $7,599.58 $10,456.24 WEEKLY SERVICE - TWO (2) CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $233.13 $439.35 $909.14 $1,554.62 $2,375.81 $3,372.64 2 $395.84 $738.20 $1,396.63 $2,265.99 $3,346.12 $4,637.15 3 $558.64 $1,036.97 $1,884.23 $2,977.40 $4,316.50 $5,901.64 4 $721.43 $1,335.84 $2,371.75 $3,688.78 $5,286.96 $7,166.15 5 $884.20 $1,634.52 $2,859.25 $4,400.16 $6,257.28 $8,430.63 6 $1,047.01 $1,933.38 $3,346.70 $5,111.59 $7,227.68 $9,695.18 7 $1,209.81 $2,232.20 $3,834.33 $5,822.93 $8,198.02 $10,959.60 8 $1,372.54 $2,531.02 $4,321.84 $6,534.33 $9,168.41 $12,224.18 9 $1,535.37 $2,829.82 $4,809.36 $7,245.71 $10,137.69 $13,488.64 10 $1,698.14 $3,128.57 $5,296.90 $7,957.08 $11,110.84 $14,753.16 WEEKLY SERVICE - THREE (3) CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $296.75 $562.30 $1,091.30 $1,795.94 $2,676.34 $3,732.42 2 $523.21 $983.95 $1,760.92 $2,748.67 $3,947.29 $5,356.73 3 $749.68 $1,405.70 $2,430.59 $3,701.43 $5,218.25 $6,981.01 4 $976.11 $1,827.39 $3,100.25 $4,654.15 $6,489.20 $8,605.33 5 $1,202.59 $2,249.11 $3,769.89 $5,606.97 $7,760.21 $10,229.64 6 $1,429.07 $2,670.76 $4,439.53 $6,559.68 $9,031.10 $11,853.94 7 $1,655.51 $3,091.97 $5,109.17 $7,512.38 $10,302.04 $13,478.26 8 $1,881.98 $3,514.17 $5,778.86 $8,465.11 $11,573.03 $15,102.55 9 $2,108.43 $3,935.92 $6,448.54 $9,417.87 $12,843.98 $16,726.86 10 $2,334.90 $4,357.59 $7,118.15 $10,370.60 $14,114.90 $18,351.11 wv CITY OF LODI CONTAINER RATES EFFECTIVE THROUGH MARCH 31, 2024 WEEKLY SERVICE - FOUR (4) CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $360.46 $685.17 $1,273.44 $2,037.36 $2,976.96 $4,092.24 2 $650.58 $1,229.78 $2,125.18 $3,231.41 $4,548.48 $6,076.39 3 $940.72 $1,774.43 $2,976.99 $4,425.57 $6,120.02 $8,060.48 4 $1,230.90 $2,319.06 $3,828.81 $5,619.67 $7,691.62 $10,044.56 5 $1,521.01 $2,863.65 $4,680.55 $6,813.74 $9,263.17 $12,028.73 6 $1,811.19 $3,408.30 $5,532.39 $8,007.83 $10,834.66 $14,012.84 7 $2,101.36 $3,952.94 $6,384.22 $9,201.97 $12,406.17 $15,996.95 8 $2,391.55 $4,497.56 $7,235.99 $10,396.03 $13,977.72 $17,981.10 9 $2,681.67 $5,042.17 $8,087.76 $11,590.16 $15,549.32 $19,965.20 10 $2,971.88 $5,586.80 $8,939.54 $12,784.22 $17,120.83 $21,949.29 WEEKLY SERVICE - FIVE (5) CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $424.11 $808.08 $1,455.57 $2,278.66 $3,277.57 $4,452.04 2 $777.97 $1,475.58 $2,489.54 $3,714.21 $5,149.68 $6,795.95 3 $1,131.79 $2,143.16 $3,523.44 $5,149.66 $7,021.83 $9,139.95 4 $1,485.64 $2,810.70 $4,557.40 $6,585.12 $8,893.92 $11,483.89 5 $1,839.55 $3,478.27 $5,591.26 $8,020.59 $10,766.07 $13,827.81 6 $2,193.33 $4,145.77 $6,625.27 $9,456.05 $12,638.23 $16,171.73 7 $2,547.24 $4,813.30 $7,659.17 $10,891.56 $14,510.34 $18,515.65 8 $2,901.06 $5,480.83 $8,693.12 $12,326.99 $16,382.45 $20,859.61 9 $3,254.96 $6,148.41 $9,727.03 $13,762.48 $18,254.63 $23,203.55 10 $3,608.78 $6,815.97 $10,760.99 $15,197.91 $20,126.71 $25,547.46 WEEKLY SERVICE - SIX (6) CUBIC YARD CONTAINER # OF CONTAINERS 1 X WK 2 X WK 3 X WK 4 X WK 5 X WK 6 X WK 1 $487.77 $931.00 $1,637.73 $2,520.06 $3,578.14 $4,811.91 2 $905.31 $1,721.43 $2,853.74 $4,196.86 $5,750.86 $7,515.62 3 $1,322.86 $2,511.86 $4,069.83 $5,873.73 $7,923.53 $10,219.35 4 $1,740.37 $3,302.29 $5,285.87 $7,550.51 $10,096.28 $12,923.08 5 $2,157.90 $4,092.72 $6,501.93 $9,227.33 $12,268.95 $15,626.82 6 $2,575.42 $4,883.25 $7,718.00 $10,904.17 $14,441.67 $18,330.53 7 $2,992.94 $5,673.66 $8,934.03 $12,580.98 $16,614.41 $21,034.28 8 $3,410.43 $6,464.10 $10,150.12 $14,257.80 $18,787.06 $23,738.00 9 $3,827.98 $7,254.50 $11,366.22 $15,934.63 $20,959.80 $26,441.77 10 $4,245.57 $8,044.95 $12,582.25 $17,611.42 $23,132.47 $29,145.52 wCITY OF LODI CONTAINER RATES EFFECTIVE THROUGH MARCH 31, 2024 WEEKLY SERVICE - 35 GALLON ORGANICS CONTAINER # OF CONTAINERS 1 X WK 2 X WK* 1 $48.20 $96.38 2 $96.39 $192.76 3 $144.58 $289.14 4 $192.78 $385.52 5 $240.98 $481.90 WEEKLY SERVICE - 64 GALLON ORGANICS CONTAINER # OF CONTAINERS 1 X WK 2 X WK* 1 $72.51 $145.02 2 $145.02 $290.03 3 $217.53 $435.06 4 $290.03 $580.08 5 $362.55 $725.10 ANCILLARY SERVICES Contamination $102.57 Available for customers with 4+ carts wCITY OF LODI 10 TO 50 CUBIC YARD CONTAINERS RATE STRUCTURE EFFECTIVE THROUGH MARCH 31, 2024 PERMANENT HIGH FREQUENCY ROLL -OFF RATES 1. Drop-off and Pick-up Charge Per Box 2. Tons Disposed/Box X Processing Charge ONE-TIME TEMPORARY USER ROLL -OFF RATES 1. Drop/off/Pick-up Charge Per Box 2. Tons Disposed/Box X Processing Charge New Current CPI Disposal Disposal Monthly Rates Increase CPI Effect Increase Effect Rate $212.86 0.000% $47.94 0.000% $270.29 0.000% $47.95 0.000% $0.00 0.000% $0.00 $212.86 $0.00 0.000% $0.00 $47.94 $0.00 0.000% $0.00 $270.29 $0.00 0.000% $0.00 $47.95 WCITY OF LODI COMMERCIAL COMPACTOR RATES EFFECTIVE THROUGH MARCH 31, 2024 Current New Services Offered Monthly CPI Disposal Disposal Monthly Rate Increase CPI Effect Increase Effect Rate 1. 2 CUBIC YARD COMPACTOR 1X Week $359.24 0.000% $0.00 0.000% $0.00 $359.24 2X Week $718.51 0.000% $0.00 0.000% $0.00 $718.51 3X Week $1,077.75 0.000% $0.00 0.000% $0.00 $1,077.75 4X Week $1,437.03 0.000% $0.00 0.000% $0.00 $1,437.03 5X Week $1,796.26 0.000% $0.00 0.000% $0.00 $1,796.26 2. 3 CUBIC YARD COMPACTOR 1X Week $443.91 0.000% $0.00 0.000% $0.00 $443.91 2X Week $887.79 0.000% $0.00 0.000% $0.00 $887.79 3X Week $1,331.68 0.000% $0.00 0.000% $0.00 $1,331.68 4X Week $1,775.61 0.000% $0.00 0.000% $0.00 $1,775.61 5X Week $2,219.51 0.000% $0.00 0.000% $0.00 $2,219.51 3. 4 CUBIC YARD COMPACTOR 1X Week $529.22 0.000% $0.00 0.000% $0.00 $529.22 2X Week $1,058.44 0.000% $0.00 0.000% $0.00 $1,058.44 3X Week $1,587.68 0.000% $0.00 0.000% $0.00 $1,587.68 4X Week $2,116.91 0.000% $0.00 0.000% $0.00 $2,116.91 5X Week $2,646.14 0.000% $0.00 0.000% $0.00 $2,646.14 wCITY OF LODI 10 TO 50 CUBIC YARD ROLL OFF* CONTAINERS COMPACTOR RATE STRUCTURE EFFECTIVE THROUGH MARCH 31, 2024 Current CPI Disposal Disposal Rates Increase CPI Effect Increase Effect New Rates TEMPORARY OR PERMANENT COMMERCIAL COMPACTOR RATES 1. Drop/off/Pick-up Charge Per Box $369.50 0.000% $0.00 0.000% $0.00 $369.50 2. Tons Disposed/Box X Processing Charge $47.77 0.000% $0.00 0.000% $0.00 $47.77 • This charge will be applied to loads that are serviced by "Roll Off' vehicles. . This charge will be applied per load to self contained compaction containers or containers that attach to a charging unit for the purpose of compaction in sizes on or about 10 to 50 cubic yards. PUBLIC HEARING FOR • ' REFUSE RATE ADJUSTMENT EFFECTIVE APRIL 1, 2023 NOTICE IS HEREBY GIVEN that the Lodi City Council will consider a proposed solid waste rate increase at a public hearing at 7:00 p.m. on Wednesday, March 15, 2023 at the Carnegie Forum, 305 West Pine Street, Lodi, CA 95420. The City Council shall consider adoption of a trash collection and recycling rate schedule for residential services to take effect April 1, 2023, as set forth in Table 1 below. Explanation of Need for Proposed Rate Increase Senate Bill 1383, signed by Governor Brown in 2016, mandates organic waste be recycled to reduce short-lived climate pollutants and greenhouse gas (GHG) emissions in landfills. Organic waste, which includes food waste, food -soiled paper, and landscape trimmings, makes up a significant portion of California's waste stream and produces methane, a greenhouse gas with over 80 times the heat -trapping effect of carbon dioxide. The City's new program aims to keep organic waste out of landfills and instead, turn it into compost to be offered to local agricultural users and landscapers to meet the State's goals to reduce organic waste disposal by 75 percent by 2025. Failure by the City to comply with the state law can result in penalties of up to $10,000 per day. What does this mean for customers? SB 1383 requires residents to separate organic waste from their garbage. Residents will be able to dispose of organic waste in their existing yard waste/green waste container. However, collection service for this container must be completed weekly instead of bi-weekly (every other week) to minimize potential odors and enhance quality of service. Rate Increase to Fund the Additional Service City Staff is proposing an increase in residential rates to cover the reasonable cost of additional services provided for the change to weekly organic waste collection service, including the increased processing fees for the combined organics stream of yard waste and food waste, additional vehicles and staff required to carry out and operate the new program, and a cart resizing plan (described below). The proposed rate increase will allow the City to comply with Senate Bill 1383 and California's recycling and GHG emissions reduction goals. Basis of the Rate Increase The proposed rates listed in Table 1 below reflect the initial rates for each container size for services to be provided by USA Waste of California, Inc. ("WM") in accordance with the terms of WM's franchise agreement with the City. The proposed rate schedule will increase average residential rates by no more than $5.00 per month for the first year. Beginning one year after the effective date of the new rates and annually thereafter, residential and commercial rates will be indexed at 80% of the annual change in the Consumer Price Index, ,for all Urban Consumers for San Francisco -Oakland -San Jose, California Area, All Items (1982-84+100) as published by the United States Department of Labor, Bureau of Labor Statistics (CPI -U) for the twelve (12) month period ending December 31 of the preceding calendar year plus an adjustment for extraordinary increases in landfill fees, fuel and energy costs, and changes in law. Rate Affordability Cart Re -sizing Plan In an effort to meet state GHG reduction requirements, WM has provided a plan to (1) reduce organic waste contamination from overfilled smaller carts, and (2) make the increased service requirements more efficient with standardized cart sizes, which will also allow more affordable rates for the larger size carts (64 gallon and 96 gallon). Under this plan, residents that currently have a 20 gallon or 35 gallon size cart will see the proposed monthly increase of $5.00 per month for the first year. These residents will be automatically transitioned to a 64 gallon cart in the first year and their previous smaller cart will be removed by WM. The rate for these customers will be incrementally adjusted over the subsequent three-year period (ending April 1, 2026),plus the annual CPI rate adjustments (unless an extraordinary circumstance requires an adjustment as allowed under the WM franchise agreement). Additionally, the proposed new, incrementally adjusted rates for customers migrating from 20 or 35 gallon carts to 64 gallon carts will not exceed the monthly rate of the 64 gallon standard rate at any time. Proposed Increases to Refuse Rates The proposed rates in Table 1 were calculated using proprietary data from WM to determine the reasonable relationship of the costs for services provided for each container size as required under the SB 1383 organic service requirements. WM's cost analysis also included the additional funding necessary for the City of Lodi to perform the downtown and street maintenance required to address the impacts of the additional SB 1383 collection services as listed below: • Purchase of two additional collection vehicles to increase organics collection to weekly service; • Implement Smart Truck technology for SB 1383 route reviews and contamination monitoring; • Outreach and education materials required by SB 1383; • SB 1383 required cart labeling redesign and new carts; • Funding for City staff to implement SB 1383 programs; • Funding for City street maintenance in response to the additional truck traffic required for weekly organic collection; • Funding to the City for downtown maintenance related to additional collection services; and • Funding to the City for the administration of the first four years of the contract Table 1. Proposed Refuse Rates in Response to SB 1383 Requirements, to take effect April 1, 2023 Cart Size Current Monthly Rate Proposed Monthly Rate 20 Gallon $20.82 $25.82 35 Gallon $30.60 $35.60 64 Gallon $46.06 $44.06 96 Gallon $100.37 $49.06 Explanation of the Proposition 218 Protest Process Proposition 218 requires that the City provide a notice of the proposed future rate schedule to all property owners at least forty-five (45) days prior to holding a public hearing by the City Council to consider adoption of the increased rates. If a majority of the property owners or renters who pay the utility bill file a written protest with the City Clerk opposing the rate increase prior to the end of the public hearing, the increase will not take effect. How to File a Protest To submit a written protest opposing the proposed rate schedule, the property owner or renter must include a description of their relevant property sufficient to identify the property. This description can be the address or assessor's parcel number for the relevant property, which is shown on this mailing. If the name of the protesting party is not shown on the last equalized assessment roll of San Joaquin County as the owner of the property or on the utility account, the signer of the Protest must also submit written evidence of ownership or renter ship and utility bill responsibility. At the public hearing, the City Council shall hear all protests and tabulate all submitted ballots in accordance with Section 6 of Article XIII D of the California Constitution. Only one written protest per parcel filed by the owner or tenant (paying the utility bill) shall be counted in calculating whether there is a majority protest. If there are multiple votes for a single parcel and the votes conflict, the City will count the conflict as a no vote. A majority protest would stop the proposed rate schedule adoption. If you wish to protest the proposed rate schedule, written protests may be made in person at the hearing or delivered to: City of Lodi Attention: City Clerk 221 West Pine Street Post Office Box 3006 Lodi, CA 95241-1910 If you have any questions about this notice, please call the Public Works Department at (209) 333-6706 between 7:30 a.m. and 5:30 p.m., Monday through Thursday, and between 8:00 a.m. and 5:00 p.m. on Friday. City Hall is closed every other Friday. OLIVIA NASHED, City Clerk City of Lodi The City of Lodi Public Works PUUiic; nCar illy Solid Waste Rates for Residential Customers Agenda Item G-1 April 5, 2023 • SB 1383 -Basics Overview • SB 1383 - Mandated Service Changes • Current Residential Rate Structure • Overages and Contamination Trends • Community Outreach and Education • Proposition 218 Rate Setting Process • Proposed Residential Rate Structure • Additional Services Overview • Community Benefits • March 15, 2023 Public Hearing Recap • Low Volume Alternative • Revised Residential Rate Structure • Rate Comparisons - Local • Recommended Action • Public Hearing and Protest Procedures BasicsSB 1383 • Passed in 2016 • Unfunded state -mandate • Mandates organics recycling to reduce green house gas emissions in landfills • Goal: To reduce organics waste disposal by 75% by 2025 0 Failure to comply= penalties of up to $10,000 per day f SB 1383 — Mandated Service Changes • Weekly organics waste collection service • Color -coded cart lids / labels • Reporting and route audits • Enforcement • Ongoing outreach and education Current Residential Rate Structure N%V Current Residential Rates • Incentivizes customers to choose smaller carts • Results in overfilling ■ Trash in roadway / truck fires • Results in contaminated recycling ■ Impacting City's diversion goals Overage and Contamination Trends L 1 in 3 homes overfill their trash cart on a weekly basis Lodi Recycling contamination rate is 38% by weight. 1 in 8 homes are placing trash bags in recycling carts o0i '''jCommunity Outreach and Education A City Council Meetings March 15, 2022 August 9, 2022 January 17, 2023 Education Campaign Educational Mailer December 2021 Completed Social Media Digital Ads July 2022 Ongoing Commercial Postcard August 2022 Completed Educational Videos September 2022 Ongoing LNS Newspaper Ads Jan 2023 — Apr 2023 Completed Residential FAQ February 2023 Completed Activity Guide Ads Spring 2023 Upcoming Email Campaign Spring 2023 Upcoming Grape Line Bus Ads TBD Upcoming Community Outreach and Education In -Person Organics Workshops Lodi Lions Club Boys & Girls Club Lodi Rotary Loel Center Lodi WorkNet Center* Public Library Lodi Vacation Rentals Lodi Farmers Market Sunrise Rotary Ti -Lingual Presentation Jan 18, 2023 Completed Jan 28, 2023 Completed Feb 16, 2023 Completed Feb 21, 2023 Completed Mar 29, 2023 Completed Apr 17, 2023 Upcoming Apr 25, 2023 Upcoming May —Aug 2023 Upcoming TBD Upcoming Proposition 218 Rate Setting Process • 45 -day notice • Explain process • Mailed to owners and renters • English and Spanish Outline basis of rate increase • Outline how to file a protest • One written protest per parcel will count • Majority protest will null proposed rate increase '�� _ Proposed Residential Rate Structure I. Original Proposed Residential Rates • Incentivizes customers to choose appropriately sized carts • Reduces overfilling ■ Reduces trash in roadway / truck fires • Improves recycling contents ■ Improves City's diversion goals • Allows up to 200 low income seniors to utilize 35 gallon cart Proposed Residential Rate Structure Proposed Residential Rates —Additional Information • Continued FREE backyard service with documented disability. • Continued backyard service available for all for an additional rate of $16.95/month. • Reduced rate available for current 20 and 35 gallon legacy rate customers that qualify (low income seniors). • Qualifying low income seniors can request a 35 gallon cart at the current rate $30.60. • Low income senior rate subject to annual CPI increases. • City and WM to meet and confer regarding effectiveness of cart size after April 1, 2026. Proposed Residential Rate Structure Proposed Residential Overage and Contamination Charges Overage —Criteria for Warning/Surcharge Requirement for lid to be closed, 6-10" above water line threshold for overage incident. Loose material left on sides of carts will result in overage incident. Contamination — Criteria for Warning/Surcharge 10% threshold/standard size kitchen bag (13 gallons). City may review a sampling of the audits during the roll-out phase to assist with targeted education. No fees charged until January 2024! Additional Services • Weekly organics collection and additional routes added beginning January 2024. • 20 and 35 gallon customers will receive color -compliant 64 gallon cart at the proposed legacy rate by January 2024. • New carts with color -compliant lids for existing 64 and 94 gallon residents beginning January 2024. • Food scraps and food -soiled paper can be placed in organics carts NOW. • Contamination and overage monitoring meeting state requirements. • Additional reporting and route audits. • Additional education and outreach. • Support for City enforcement of clean waste streams. Community Benefits r , • Increase existing Street Maintenance Fee by $330,000, for a total annual amount of $1,085,603. • New Downtown Maintenance Fee of $100,000 annually. • Annual payment of $125,000 for City staff. • All annual payments to be increased by the same percentage as WM rates on an annual basis. • One-time administrative fee of $1,000,000 to be paid to the City in four annual payments of $250,000. Community Benefits Annual transfer station voucher good for two yards of disposal FREE Annual Dollar Dump Day voucher Annual curbside clean up Illegal dumping program Free disposal of leaves during City 7s annual pick up Donations to community groups Four collection events each year for disposal of hazardous and electronic waste March 15, 2023 Public Hearing Recap 0 Presentation by Public Works staff Public Hearing opened at 8:03pm Public comment ■ 18 public comments ■ Public concern over the larger refuse cart ■ Final call for protests Public Hearing closed at 9:03pm • City Clerk tallied protests submitted ■ City Clerk certified 369 protests were received and counted Council directed staff to work with WM to provide an alternative Item continued to the April 5, 2023 Council meeting for discussion and vote What Changed.? _41QL Low Volume Alternative • Eliminated proposed low-income senior rate • Customers who currently have 20 or 35 gallon service as of April 5, 2023 may request low volume service ■ Limited to first 1,000 customers ■ Outreach/advertising period April 6 — May 5 ■ Sign up period May 8 — May 12 ■ Low volume service offered at current 35 gallon rate $30.60 ■ Low volume rate subject to annual CPI increases • May not have more than one instance of overage or contamination during period of April 5 — October 31 ■ WM may upsize to a 64 gallon cart effective January 1, 2024 ■ 64 gallon rate will apply • Low volume service not available after initial sign up period • All proposed rates effective May 15, 2023 1� Lew Volume P I ���IFORTiIA Solid Waste 35 -Gallon Cart Request Form APP UCANT INFORMATION Customer Name' Account Number: Street Address: Ci State Zip Code: Mailing Address if different): Ci StateZip Code: Email Address. Phone Solid Waste 35 -Gallon Cart Request • I am the account holderfor the address listed above and am authorized to sign this form. • I understand that if I have an instance of overage andfor contamination between April 6, 2023 and October 31, 2023, WM may replace the 35 -gallon cartwith a fid -gallon cart, at the current 6 -4 -gallon rate, effective January f, 2024. • I attest that all information presented is true and accurate. Name Signature Date To Be Completed by City Staff Received by: Date. Revised Residential Rate Structure Revised Residential Rates • Incentivizes customers to choose appropriately sized carts • Reduces overfilling ■ Reduces trash in roadway / truck fires • Improves recycling contents ■ Improves City's diversion goals • Allows up to 1,000 low volume customers to utilize 35 gallon cart City of $30.67 $32.61 $34.33 Manteca* City of Lathrop $37.17 $40.04 $45.46 City of Lodi $30.60 $44.06 $49.06 low volume rate Proposed 20 and 35 $25.82/$35.60 gallon legacy rates City of $34.42 $43.60 $52.82 Stockton City of Galt $38.82 $44.88 City of Tracy $48.15 56.67 Recommended Action Approve Resolution Setting Future Solid Waste Rates Pursuant to Proposition 218 for Residential Customers as set forth in Proposition 218 Notice and Proposed Resolution with Low Volume rate modification Public Hearing and Protest Procedure • Public Hearing —Closed • 369 Protests certified by City Clerk • Council to take recommended action on item G-1 Questions? X0,F DECLARATION OF POSTING NOTICE OF PUBLIC HEARING TO CONSIDER RESOLUTION SETTING FUTURE SOLID WASTE RATES PURSUANT TO PROPOSITION 218 FOR RESIDENTIAL CUSTOMERS On Thursday, February 23, 2023, in the City of Lodi, San Joaquin County, California, a copy of a Notice of Public Hearing to consider resolution setting future solid waste rates pursuant to Proposition 218 for residential customers (attached hereto, marked Exhibit "A") was posted at the following locations: Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum WorkNet Office I declare under penalty of perjury that the foregoing is true and correct. Executed on February 23, 2023, at Lodi, California. PAMELA M. FARRIS ASSISTANT CITY CLERK ORDERED BY: OLIVIA NASHED CITY CLERK KAYLEE CLAYTON ADMINISTRATIVE CLERK \\cvcflv0l\administration$\Administration\CLERK\Agenda\City Council\Public Hearings\AFFADAVITS\DECPOST 1. DOC SUBJECT: Please immediately confirm receipt of this fax by calling 333-6702 CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS NOTICE OF PUBLIC HEARING TO CONSIDER RESOLUTION SETTING FUTURE SOLID WASTE RATES PURSUANT TO PROPOSITION 218 FOR RESIDENTIAL CUSTOMERS PUBLISH DATE: SATURDAY, FEBRUARY 25, 2023 IR ZIC1, TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: OLIVIA NASHED, CITY CLERK LNS ACCT. #5100152 City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, FEBRUARY 23, 2023 ORDERED BY: OLIVIA NASHED CITY CLERK PAMELA M. FARRIS KAYLEE CLAYTON ASSISTANT CITY CLERK ADMINISTRATIVE CLERK Emailed to the Sentinel at legals@lodinews.com at (:1 1 {time) on forms\advins.doc es) ` CITY OF LODI d Carnegie Forum �. 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: March 15, 2023 Time: 7:00 p.m. For information regarding this notice please contact: Olivia Nashed City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HIEREBY GIVEN that on Wednesday, March 15, 2023, at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the following item: a) Adopt resolution setting future solid waste rate schedules pursuant to Proposition 218. Information regarding this item was mailed to all property owners and utility customers at 45 days prior to the hearing. Information may be obtained in the Public Works Department, 221 West Pine Street, Lodi, (209) 333-6706. All interested persons are invited to present their views and comments on this matter. Written statements and protests may be filed with the City Clerk, City Hall, 221 West Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements and protests may be made at said hearing. If you challenge the subject matter in issues you or someone else raised at written correspondence delivered to the the close of the public hearing. By Order of the Lodi City Council: Olivia Nashed City Clerk Dated: February 23, 2023 Approved as to forni: Janice D. Magdich City Attorney court, you may be limited to raising only those the public hearing described in this notice or in City Clerk, 221 West Pine Street, at or prior to AVISO: Para obtener ayuda interpretativa con esta noticia, por favor Ilame a la oficina de la Secretaria Municipal, a las (209) 333-6702. CLERK\PUBHEAR\NOTICESINotPW 218SolidWasle 2123/23