HomeMy WebLinkAboutCC 2025-01-14_10a Solid Waste Rate Adjustment_Prop 218_PP
Establishment of a Solid Waste Rate Adjustment Consistent with Proposition 218
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Recommended Action
Conduct a public hearing and consider any protests regarding the proposed solid waste rate adjustment set forth in the attached Resolution and the Notice of Public Hearing provided to
solid waste rate customers based on the Solid Waste Rate Review;
If there is no majority protest, adopt a Resolution establishing integrated solid waste collection service rates for January 15, 2024, and each January 1 from 2026 through 2029; and
Make findings as included in the attached Resolution that establishing solid waste rates are not a project subject to the California Environmental Quality Act (“CEQA”) because the action
has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.).
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Background
Existing rate adjustment methodology was established in 1994
The last cost-based adjustment occurred in 2022, with CPI adjustments in 2023 and 2024
South County Sanitary Service (SCSS) submitted a cost-based rate adjustment application for 2025 per existing methodology and schedule
The City along 9 other Agencies in San Luis Obispo County and SCSS’ parent company (Waste Connections) all see benefit in a new approach to annual rate adjustments
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Background
R3 presented a Solid Waste Rate Review report that included the new rate adjustment methodology and the corresponding rate adjustment of 4.92%.
SCSS mailed out the Proposition 218 Notices with the new rates.
The Public Hearing for January 14, 2025, to consider adjusting the Solid Waste rates for January 15, 2024, and each January 1 from 2026 through 2029.
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2025 Rate Adjustment
The key features of the new methodology include:
Capped CPI Adjustment
Revenue Balancing Mechanism
Less Frequent Cost-Based Adjustments
Updated Depreciation Lifespan for Trucks
Updated Profit Allowance
Removed Limitation on Corporate Overhead
Extraordinary Adjustments
Regional Service Enhancements
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2025 Rate Adjustment
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2025 Rate Adjustment
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Conduct a public hearing and consider any protests regarding the proposed solid waste rate adjustment set forth in the attached Resolution and the Notice of Public Hearing provided to
solid waste rate customers based on the Solid Waste Rate Review;
If there is no majority protest, adopt a Resolution establishing integrated solid waste collection service rates for January 15, 2024, and each January 1 from 2026 through 2029; and
Make findings as included in the attached Resolution that establishing solid waste rates are not a project subject to the California Environmental Quality Act (“CEQA”) because the action
has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.).
Recommendation
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