Public Notice of Proposed Adjustment to Sanitation Services Users Charge
(Sanitation Fee)
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Background
The Sanitation Services Users Charge - Sanitation Enterprise (Sanitation Fee) was established on June 17, 1991, by Ordinance (NS-2129) and has remained fixed since 1996. The Sanitation Fee was reduced in 2017 and 2019 due to expense transfers and the current monthly rate is $5.35 per unit. Constituting 1% of the total City budget, the Sanitation Fee funds crucial daily services such as illegal dumping removal, roadway cleaning, street sweeping, sanitation inspection and enforcement, and weed abatement.
Proposed Adjustment Determination
On August 1, 2023, the City Council contracted Stearns, Conrad & Schmidt Consulting Engineers, Inc. (SCS) to conduct a Cost of Service Study for the Sanitation Enterprise. The study identified a need for an adjustment, driven by inflation, increased service levels, and rising costs in street sweeping and other contractual services. The proposed adjustment detailed below is essential for the sustained delivery of on-demand sanitation services.
Proposed Changes
- Adjustment of the monthly Sanitation Fee from $5.35 to $11.72 per unit, effective July 1, 2024.
- Establishment of a 90-day fund reserve, maintaining approximately 20% of operating and maintenance expenses in alignment with the City reserve policy.
- Implementation of an annual adjustment of 3.5% to keep pace with inflation and operational costs.
Public Hearing Details
The public hearing is scheduled for February 20, 2024 and will consider adopting a resolution authorizing the sanitation fee rate and future rate adjustments for a five-year period commencing July 1, 2024, through June 30, 2029. If approved, the proposed 2024 rate, detailed in Table A, will take effect on July 1, 2024, with annual adjustments through June 30, 2029. Any additional increase, in any year, would require another Proposition 218 noticed public hearing and approval by the City Council.
Table A: Sanitation Services User Charges
