Agenda Packet_2023-08-01 - Laserfiche WebLink

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Background . der Grove u-Discuvery-Cube The Sanitation Services Users Charge (Charge or Fee) of $5.35 per month, is LF 'emp ""l05Cl paid by approximately 89,000 customers on a bimonthly basis. The Environmental Sanitation Program enforces municipal codes for right-of-way obstructions, illegal Q 0.ATCSIA PILAR ta Ara advertising, weed/rubbish abatement, and refuse violations. Among the services Santa Ana �SanTustirZoo provided are street sweeping, abandoned item collection, sidewalk cleaning and power washing, cleaning services for illegal dumping areas, sidewalk and alley 9 Heritage Museurr cleaning, right-of-way inspection and enforcement, and weed abatement. The �� ofGrargeCounty program also coordinates with neighborhood associations to assist in beautifying their properties and neighborhoods. �� , / vorange Let's Consider the Issues the City is Facing — — Mof Art Increased Cost The City has operated without a Fee increase since 1996, allowing your businesses and residents to be the beneficiary of low-cost services for nearly 30 years. However, salaries, contractual costs, and other operational costs increase over time, despite receiving a tremendous amount of scrutiny by public officials and community stakeholders. For FY 2023, the Fee is budgeted to generate about $6.3 million in annual revenues, but incur about $7.3 million in expenses, a significant increase over prior years. The increased cost of Street Sweeping due to prevailing wage regulation is partly responsible for this increased cost. As a result, the City is considering changing its level of service in terms of linear miles or frequency to accommodate these cost increases. Additionally, inflation due to economic pressures and supply chain issues has dramatically increased costs of everything from technology to fuel, further putting pressure on the City's revenue sufficiency. Increased Service Level Demand As the City of Santa Ana has grown to be the center of Orange County for many events and services, so has the need to handle the increased influx of both daytime and night time populations. Streets sweeping, sidewalk and alley cleaning, and illegal deposits/rubbish removal, have all seen a rise in service demands. How do these issues affect financial sustainability? Your financial health as a utility is dependent on how many paying customers the City has, as well as how much waste is disposed. Regardless of the number of customers or containers tipped in a year, your costs continue to increase, and most of those costs are fixed. Disposal costs, although variable based upon the amount of waste disposed, can be subject to tipping fee increases. Likewise, increasing costs of supplies, salaries, and routine capital cause your expenses to increase annually. And operational inefficiencies can further add to ongoing expense. Recognizing that current revenues are insufficient to fund ongoing costs of operations and capital, the City has chosen to engage a qualified firm to provide an analysis and to develop a financial management plan and rate structure to generate the required revenue while minimizing the impact on the City's residents. Now that we understand your problems, we want you to understand our solutions... While our financial models support decision -making, our added value is our client focus, industry experience, and technical ability that we leverage to identify innovative solutions to your problems. C S C ry V I ry C C R� i City Council ••8/1/2023