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7.A. - Page 3 <br /> Public Notice and Outreach. Many public agencies follow the procedural provisions of <br /> Proposition 218 when increasing solid waste rates, though there is some legal <br /> uncertainty regarding whether these charges are truly property-related charges subject <br /> to the requirements of the Proposition. Pursuant to the procedural requirements of <br /> Proposition 218, the City mailed notices of the proposed 2013 rate increase and public <br /> hearing to property owners and ratepayers, posted the Notice at official posting sites <br /> and published in the local newspaper. <br /> ALTERNATIVES <br /> 1. Council may elect not to approve this proposed increase, but in doing so may <br /> create the need for the City to subsidize payments for garbage in order to comply <br /> with the terms of the Franchise Agreement; the City will incur interest charges as <br /> the proposed rate increase is based on a methodology contained in the Franchise <br /> Agreement. <br /> 2. Council may elect to delay this proposed increase and direct staff to develop an <br /> alternative schedule for implementing the solid waste rate increase. However, a <br /> delay in establishing the new rates would likely result in an increase greater than <br /> the currently proposed rate increase in order to cover the additional revenue losses <br /> and interest charges that will be owed to Recology under the Franchise <br /> Agreement. <br /> FISCAL IMPACT <br /> Since the City, in accordance with the respective Franchise Agreement does not pay <br /> Recology for solid waste and recyclable material collection services from the General <br /> Fund, there will be no cost impact to the City if this rate increase is approved. This <br /> practice is consistent for all SBWMA Member Agencies. <br /> ENVIRONMENTAL REVIEW <br /> No Environmental Review is required to establish rates for solid waste collection <br /> services. <br /> 1��cz�� i��'� <br /> MIKE GIBBONS <br /> PUBLIC WORKS SUPERINTENDENT <br /> � <br /> BILL EKERN <br /> DIRECTOR COMMUNITY DEVELOPMENT <br />