HomeMy WebLinkAbout19E - SANITATION RATE REDUCITIONCITY COUNCIL MEETING DATE:
DECEMBER 6, 2016
TITLE;
SANITATION RATE REDUCTION
(STRATEGIC PLAN NO. 4)
�r
CITY MANAGER
Receive and file the Sanitation Rate Reduction Calculation.
DISCUSSION
CLERK OF COUNCIL USE ONLY,
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 18' Reading
❑ Ordinance on 2n6 Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
The City of Santa Ana Sanitation Enterprise provides a variety of services within the City's 400
miles of public right-of-way. Sanitation Enterprise operations include graffiti abatement services,
roadway cleaning, street sweeping, street tree trimming, and weed abatement.
The City reviews enterprise operations expenditures as a continued best practice, including
expenditures in the Public Works Agency Sanitation Fund. After completing a review this year, it
was determined that the City's Graffiti Abatement Services were able to be funded by the City's
General Fund. On September 20, 2016, the City Council approved an appropriation adjustment
reducing the Fiscal Year 2016-17 Budget for the Sanitation Enterprise in the amount of
$1,601,440. City Council also directed staff to calculate a Sanitation Rate decrease
corresponding to the transfer of $1,200,000 in Graffiti Abatement Services to the General Fund.
In accordance with City Council's direction, staff performed the calculation and determined that
the corresponding reduced bi-monthly rate will be $12.94 -- a $1.98 reduction to the current bi-
monthly rate (Exhibit 1). Approval of the recommended action will allow the City to continue
providing valuable and efficient citywide services at a cost-effective rate. Implementation of the
rate reduction is scheduled for January 2017.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #4 — Maintain a stable, efficient and
transparent financial environment.
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Sanitation Rate Reduction
December 6, 2016
Page 2
FISCAL IMPACT
The decrease in the Sanitation Rate will have a projected reduction of approximately $1,200,000
to the Environmental Sanitation Fund Revenue budget (Account No. 06817002-53719).
Ii A -a
Fr d Mousavipo r
E ecutive Director
Public Works Agency
FM:PG
APPROVED AS TO FUNDS & ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
Exhibits: 1. Sanitation Rate Reduction Calculation
19E-2
SANITATION RATE REDUCTION CALCULATION
FORMULA DESCRIPTION
A Graffiti Removal/Street Cleaning Program
B Sanitation Fund Total Budget
C = A r B %of Graffiti Remvoal/Street Cleaning
D Sanitation Rate (Current)
C %of Graffiti Remvoal/Street Cleaning
E = D x C Sanitation Rate decrease based on removal of Graffiti Program
D Sanitation Rate (Current)
E Sanitation Rate decrease based on removal of Graffiti Program
F = D - C Proposed Adjusted Sanitation Rate
Exhibit 1
19E-3
RESULT
11200,000.00
9,088,970.00
0.13
14.91
0.13
1.97
14.91
1.97
12.94
19E-4