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Page 8 of 9 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />o Neighborhood Association outreach on the proposed rates <br />o Virtual presentation on the proposed rates <br />o Tabling at local market on the proposed rates <br />As of January 23, 2025, the City has received 48 letters protesting the proposed solid waste rate increases. <br />In some letters residents have asked the City to raise solid waste rates by the same percentage for each <br />cart size, or to raise rates by a lower percentage for residents who use smaller carts as a way to encourage <br />residents to recycle and to minimize household waste. Unfortunately, these approaches are not advisable <br />for the City. State law requires the City to charge rate payers rates that reflect the cost of providing solid <br />waste services. Many costs for these services are fixed, and do not change when carts are smaller. <br />Approximately 85% of residential customers in Redwood City are subscribed to a 20 or 32 gallon cart <br />service. The City truly appreciates residents who strive to reduce waste in order to protect the <br />environment. Their efforts also reduce the need for expanding landfills, avoiding cost increases for <br />everyone. <br />Franchise Fees <br />The City imposes a franchise fee on Recology to compensate the City for the costs of the services, <br />products, and benefits it provides to Recology for solid waste-related services and for the value of the use <br />of the City’s property for solid waste services. HF&H recently conducted an analysis of the City’s franchise <br />fees (Exhibit B of the attached resolution), which showed that the fees are justified under Proposition 26. <br />EQUITY IMPACT STATEMENT <br />Equity and/or inclusion was considered in development or implementation of item through the <br />following: <br />While considering the equity of the proposed rates, staff confirmed that low income customers are <br />present in every geographic area of the community. As a proxy for solid waste customers, staff reviewed <br />the current geographic locations of service addresses belonging to accepted applicants of the City’s URAP. <br />Based on this data, it appears that every neighborhood within the City has customers who qualify for/who <br />have enrolled in rate assistance. As such, staff does not believe this rate increase will disparately impact <br />any underserved areas as URAP was specifically set up to assist those in need and will be available to all <br />customers who meet eligibility criteria. <br />FISCAL IMPACT <br />In accordance with the City’s Franchise Agreement with Recology, the City does not pay for solid waste <br />and recyclable material collection services from the General Fund. Rate payers pay for the cost of these <br />services, and this practice is consistent for all SBWMA member agencies. <br />7.A. - Page 8 of 32 <br />134