AGENDA TITLE:
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Receive Information Regarding Multi-Family Billing Options for Solid Waste Collection Services for Multi-Family Properties and Provide Direction to Proceed; and Receive Information Regarding Multi-Family Water Metering (PW)
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MEETING DATE:
May 1, 2024
PREPARED BY:
Public Works Director
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RECOMMENDED ACTION:
Receive Information Regarding Multi-Family Billing Options for Solid Waste Collection Services for Multi-Family Properties and Provide Direction to Proceed; and Receive Information Regarding Multi-Family Water Metering.
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BACKGROUND INFORMATION:
The City of Lodi’s franchise solid waste hauler, Waste Management (“WM”), currently provides solid waste collection services to multi-family properties within the City of Lodi. The City, as a convenience to our residents and customers, provides the billing for these services as part of our combined City of Lodi monthly billings for water, wastewater and electric utilities.
Multi-family residents that receive bin service are currently charged a “flat-rate” charge of equal to $1.00 less than the 35-gallon residential cart base rate. The current base rate for that service is $38.47, making the multi-family rate $37.47.
Current billing practices generally do not cover the cost of the service provided to multi-family properties. Approximately 70 percent of all multi-family properties in the City do not generate monthly billings equivalent to the cost of the bin service provided to the property. This results in approximately $500,000 lost revenue to WM and approximately $24,000 of that amount would be payable to the City in franchise fees, annually. Per the City’s franchise agreement with WM, multi-family billing adjustments must be made by April 2024, to rectify the matter.
Additionally, current billing practices do not allow for tenant direct billing for organics recycling services for multi-family properties. Per Senate Bill 1383 (SB 1383), organics service is required to be provided to all commercial properties, including multi-family properties.
Assembly Bill 2572 (“AB 2572”) requires all water service in the state of California to be metered by January 2025. The City has implemented metered water billing to all residential and commercial customers (except for multi-family properties consisting of five or more units). Metering multi-family water service by DATE will result in the City’s compliance with AB 2572, prior to the January deadline.
Staff held a townhall meeting on March 15, 2024, inviting 180 multi-family property owners to discuss multi-family billing options for both solid waste and water. Approximately 10 percent of all multi-family property owners attended, representing more than 20 percent of all multi-family units in the City. Staff presented one billing option each for solid waste and water, followed by a lengthy question and answer period, including open discussion.
Based on the feedback received during the townhall, Staff has expanded the options available for Council’s consideration for solid waste.
Staff will present three options related to solid waste billing for multi-family properties for Council to consider, to allow for billing to reflect actual service provided, as well as, allow for implementation of organics recycling at multi-family properties. All options will include an implementation plan that allows the City to become compliant with SB 1383 within the requested extension timeline of the City’s Corrective Action Plan administered by CalRecycle. Additionally, Staff will also present information regarding master metering and billing for water for multi-family properties, allowing the City to be compliant with AB 2572.
STRATEGIC VISION:
Not Applicable.
FISCAL IMPACT:
Not Applicable.
FUNDING AVAILABLE:
Not Applicable.
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Charles E. Swimley
Public Works Director
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Andrew C. Keys
Interim City Manager