AGENDA TITLE:
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Council Discussion Regarding the Utilization of Proceeds from Waste Management’s Annual Administrative Fee and One-Time Surplus Funds Associated with Fiscal Year 2024/25 (CM)
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MEETING DATE:
August 6, 2025
PREPARED BY:
James Lindsay, Acting City Manager
recommendation
RECOMMENDED ACTION:
Discussion utilization of the proceeds from Waste Management’s annual administrative fees and one-time surplus funds associated with Fiscal Year 2024/25.
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BACKGROUND INFORMATION:
The franchise agreement with USA Waste of California, Inc. dba Central Valley Waste Services, commonly known as Waste Management (WM), includes an administrative fee of $1,000,000, payable in $250,000 increments to the City over four years beginning April 2024.
Section 9d of the agreement states:
(d) WM will pay the City an administrative fee of $250,000 on or about April 1, 2024, April 1, 2025, April 1,2026, and April 1, 2027.
The administrative fee is intended to fund a City Council-chosen project that improves our community and would otherwise not be funded in the near future. To date, the City has received two payments of $250,000, for a combined total of $500,000.
Additional one-time funds are available from unrealized project allocations and budget surplus in Fiscal Year 2024/25. Funding available, from both sources referenced above, totals approximately $1.68 million.
Council directed Staff to evaluate and recommend community improvement projects that would qualify for the one-time surplus funds which could either be used separately or coupled with the proceeds from the WM administrative fees to fund one or more projects. Staff will be prepared with suggestions at the City Council meeting on how the $500,000 in WM annual funds could be allocated.
We recommend the City Council defer allocating any surplus funds until the mid-year budget update is presented in February, as legal services related to employment matters, personnel, and financial investigations continue to accrue, with the final cost of those services not being known for several months.
STRATEGIC VISION:
5C. Infrastructure: Address deferred maintenance.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
General Fund Capital (WM Annual Funds): $ 500,000
Parks Capital (Reallocated funds): $ 500,000
FY25 Budget Surplus (Approximate): $ 686,000
Total Funding Available (Approximate): $1,686,000