AgdaPkt 2008-02-11 Clsd and Reg - Laserfiche WebLink

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88 This proposal stems from a need to encourage more recycling by commercial solid waste Page 2 generators. Also, it is recommended that the residential rate structure be adjusted to begin to equalize the per volume cost of disposing of solid waste so that all residential subscribers pay roughly the same amount (on a per gallon basis) to dispose of solid waste. This proposal is being made to address inequities in the existing residential rate structure. PUBLIC NOTICE In July 2006, the California Supreme Court determined that water consumption charges 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 ofthis 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 files 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, February 11, 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 At the public hearing that was held on March 26, 2007 at which the Council approved the 2007 rate increase (Attachment 1), several members of the public asked the Council to explore a progressive rate structure to encourage diversion of more solid waste from the landfill. Council then directed staff to pursue this as part of the 2008 rate increase analysis. During the fall of 2007 staff met with the Council Utilities Committee on three separate occasions to present information and alternatives about the feasibility of adopting a progressive rate structure. Since there is healthy participation by residential customers in the recycling programs offered by Allied, the committee chose to focus staff's efforts on commercial accounts as these accounts are diverting less waste on a percentage of total waste generated than residential accounts. The following table reflects the respective diversion rates for the commercial and residential classes of subscribers for the past five years: Commercial Residential 2002 14.62% 43.20% 2003 15.56% 43.98% 2004 12.33% 43.20% 2005 16.39% 43.00% 2006 18.78% 43.70% After considering several options the committee recommended a progressive rate structure for commercial accounts that would increase the per yard cost of disposal by 3% at each weekly 10 yard service level interval (Attachment 2). The committee also recommended that staff begin a process to transition residential rates to an equalized volume based rate 2