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Home My WebLink AboutPresentation - #44 - Sanitation Services Users ChargeResolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 1 Sanitation Services Users Charge Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 2 Sanitation Enterprise: Services Provided •Sanitation Enterprise (Sanitation Fee) supports the following services and programs citywide: –Street sweeping –Illegal dumping removal –Trash and debris removal –Sidewalk and Alley cleaning –Weed abatement –Sanitation inspection and enforcement Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 3 Sanitation Services Provided Street Sweeping Roadway Cleaning Illegal Dumping Cleanups Weed Abatement Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 4 History •Sanitation Fee was established on June 17,1991 by ordinance •Fee is a fixed amount per unit and has not been increased to keep up with inflation and increased levels of service requests since 1996(Cumulative inflation in 27 years is over 100%) Cost Saving Measure: Fee was reduced in 2019 by $1.12/month when Tree Services Program expenses were transferred to the General Fund Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 5 Cost to Residents and Businesses •Current fee is $5.35 per month, billed every two months, for $10.70 per bill. •Every property pays fee on a per unit basis o Residential, Commercial, Industrial •Total number of units: 92,800 Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 6 Need for Increased Level of Service Community demand for more sanitation services has increased: •MySantaAna App Sanitation requests increased over five times since 2019 (2019 -7,900 to 2023 -44,000) •Street Sweeping Service Increased Frequency Requested o Commercial streets require a heightened sweeping frequency to twice weekly to ensure a cleaner environment o Industrial sweeping needs an increase to twice monthly •Illegal Dumping –Additional illegal dumping removal efforts are required to address this pressing issue o Staff augmentation and increased contractual services are proposed to address Citywide increases in trash and litter o Hotspot area cleanup frequency will be increased •Sanitation violation enforcement will be increased Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 7 Increased Requests for Service - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2019 2020 2021 2022 2023 7,909 18,333 25,032 24,321 44,320 Sanitation Service Requests (MySantaAna App) Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 8 Current Expenditures Exceed Sanitation Revenue $7.1 $7.1 $6.1 $6.0 $6.1 $6.4 $6.5 $6.5 $6.5 $6.1 $4.9 $6.3 $7.0 $7.3 $7.6 $10.6 + $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0 $12.0 17/18 18/19 19/20 20/21 21/22 22/23 *23/24 **24/25 REVENUE AND EXPENDITURES (MILLIONS) Revenue Expenditures *Adopted Budget **Projection Excludes Other Operational Increases (i.e. Contractual, Capital Costs, COLA) Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 9 Proposition 218 Cost of Service Study •City is required to retain consultant to conduct a Cost of Service Study of the Sanitation Enterprise and its ability to be sustainable and meet increasing service levels •The current fee cannot support both the current level of service needs and the cost of the new street sweeping contract o 2024 Street Sweeping contract increased by 285% due to prevailing wage & market costs ($3 Million Annually / $18.61 to $53.05 per curb mile) Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 10 Proposition 218 Cost of Service Study •SCS Engineers conducted a 10-year Cost of Service Study that took into account: o Cost of living escalation and operational costs o Growth in number of units o Fund reserve need (currently does not exist) o Staffing levels and equipment needs o Increased cost of contracts to meet service demands •Due to rising cost of operations and lack of inflationary adjustments in 27 years, the proposed rate will be slightly over twice the current rate •Proposed fee adjustment is crucial to sustain the quality and availability of sanitation services, and will ensure the continued delivery of these essential services Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 11 Proposed Fee Adjustment Current Monthly Fee FY 2023-24 Proposed FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 $5.35 $11.72 $12.13 $12.56 $13.00 $13.45 Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 12 Single Unit Bi-monthly Fee (per bill) Current Bi- monthly Fee (per unit) FY 2023-24 Proposed FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 $10.70 $23.44 $24.26 $25.12 $26.00 $26.9 Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 13 Process and Next Steps Awarded new street sweeping contract for July 2024 (August 2023) •Followed Proposition 218 requirements Completed rate study (Fall 2023) City Council authorized documents for proposed Sanitation Fee adjustment in compliance with Proposition 218 requirements (December 5, 2023) Citywide public outreach -multiple efforts completed 45-day public notice period (48,302 Mailed December 27) Hold public hearing and adopt rates for the next 5 years (February 20, 2024) •Adjusted fee to start in July 2024 Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 14 Questions? Resolution to Adjust Sanitation Services Users Charge Public Works Agency February 20, 2024 Slide 15 Report Service Requests •Download and use the free mySantaAna app www.santa-ana.org/mysantaana-app Descargue y use la aplicación gratuita mySantaAna app www.santa-ana.org/mysantaana-app •Call Public Works Dispatch (714) 647-3380 Llame al Centro de Comunicaciones de Obras Públicas (714) 647-3380 •Go online to City of Santa Ana home page and click on “Report Issue” words at top of page Vaya a la página de inicio de La Ciudad de Santa Ana y haga clic en las palabras “Report Issue“ en la parte superior de la página •E-mail at PWADispatch@santa-ana.org Envíe correo electrónico a PWADispatch@santa-ana.org