AgdaPkt 2007-03-26 - Laserfiche WebLink

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7B Page 2 2. A 3.10% increase due to a revenue shortfall in 2005 and 2006. 3. A 0.25% increase due to an administrative charge to reimburse the City for Finance Department staff time devoted to administering the solid waste franchise and involvement at the South Bayside Waste Management Authority. This proposed fee has been discussed with and is supported by the Council Finance Committee and the Council Utilities Committee. Public Notice In Juiy 2006, the California Supreme Court determined that waterconsumptioneharges are property-related charges and increases in such charges are subject to the procedural provisions of Proposition 218. As a result of this decision, many public agencies are now also following the procedural provisions of Proposition 218 for increasing solid waste rates as there is some chance that the Court would also find that these charges as property- related fees. Accordingly, staff followed the procedural provision of Proposition 218 and mailed notices of this proposed rate increase to all addresses in Redwood City that receive solid waste services advising subscribers and property owners of this recommended rate increase. Under certain provisions contained within Proposition 218, if a majority of the affected property owners file a written protest against the proposed rate increase, the governing body may not approve the proposed increase. Since the deadline for submitting such written protests is 5:00 p.m, on Monday, March 26, staff will advise the Council with the number of protests filed as part of the oral presentation of this recommendation at the Council meeting. Utilities Committee Recommendation Although a 14.75% rate increase is needed to eliminate the cumulative deficit in the balancing account and bring 2007 expenditures and revenues into balance, the Council Utilities Committee recommends that $459,000 fro... the $2.4 minion payment (see below) the City will receive from Allied be used to eliminate this deficit. The committee further recommends that collection rates be increased 10.75% to bring ongoing revenues into balance with ongoing expenditures. The $2.4 million payment the City will be receiving over the next four years is the result of an agreement reached between the SBWMA and Allied earlier this year under which: The SBWMA extended the agreement for operating the transfer station by one year, from December 31, 2009 to December 31, 2010; • Each member agency of the SBWMA extended the expiration of their respective collection agreements from December 31, 2009 to December 31, 2010; The SBWMA agreed to commit disposing of all solid waste at Allied's Ox Mountain (Half Moon Bay) landfill for the next 15 years. It should be noted that the reason for initiating these negotiations under which these agreements were made was due to Allied charging a lower landfill disposal rate to South San Francisco Scavenger of approximately $10.00 per ton (from $44 per ton to $34 per ton). As soon as the SBWMA became aware of this rate reduction, the SBWMA initiated negotiations with Allied to obtain the same reduction. 2