Public Hearing Notice: Proposed Increases to Solid Waste Fee

Posted on May 31, 2022


DATE: Tuesday, June 7, 2022

TIME:  6:00 P.M. (or as soon thereafter as the matter may be heard)

LOCATION: City Hall / Council Chamber
11999 Palm Drive, Desert Hot Springs, CA 92240


NOTICE OF PUBLIC HEARING REGARDING
PROPOSED INCREASES TO SOLID WASTE FEE

NOTICE IS HEREBY GIVEN that the City of Desert Hot Springs (the “City”) will hold a Public Hearing on June 7, 2022, at 6:00 p.m. (or as soon after as the matter may be heard), in the Council Chambers/City Hall, 11999 Palm Drive, Desert Hot Springs, CA 92240, to consider adopting increases to the fees for collection and handling of solid waste within the City (collectively, “Solid Waste Services”) and collecting the fees for residential services on the County property tax bill. In compliance with Section 6 of the California Constitution, Article XIII (D) (Proposition 218), this notice is to provide you with information about the Proposed Fee Increase, as defined herein. On April 19, 2022, at a regular public meeting of the City Council of the City, the City Council adopted a Resolution to set a time and place for a public hearing on the Proposed Fee Increase in Exhibit A attached to the Resolution. The Proposed Fee Increase is also attached to this Notice. The proposed fee increases are as follows: 1) new fee increases to comply State-mandated organic waste collection services pursuant to regulations implementing Senate Bill 1383 (Chapter 395, Statutes of 2016); 2) new bulky item fees; and 3) increase in fees adjusted by the percentage change in the Consumer Price Index for All Urban Consumers for Los Angeles-Riverside-Orange County Area (CPI-U), January to January (collectively “Proposed Fee Increase”). Please refer to Exhibit A attached to this Notice. The methodology to calculate the Proposed Fee Increase is also attached to this Notice as Exhibit B.

Proposed Fee Increases

Desert Valley Disposal (“DVD”) provides Solid Waste Services within the City pursuant to an exclusive franchise agreement. Single family residential accounts are billed on the County property tax bill while DVD bills other customers directly for the services. Fees for Solid Waste Services are evaluated periodically to maintain an adequate fee structure to fund the costs of providing Solid Waste Services to residents and commercial businesses. The fee structure for monthly Solid Waste Services has three customer classes: (1) residential (2) commercial and (3) roll-off. The fees for Solid Waste Services imposed on each customer class are determined on the basis of (1) the size of the cart (in gallons), or bin or box (in cubic yards) serving the property; (2) the type of container service (e.g., solid waste, recycling, or green/organic waste) serving the property; and (3) the frequency of pickups per week. The fee structure is comprised of service fees and material tipping fees. The Proposed New Fees in order to comply with SB 1383 are calculated to recover the costs of providing new weekly organic waste collection services, outreach, education, monitoring, reporting, and container labeling to comply with the SB 1383 regulations, and to further recover the costs of and to proportionately allocate those costs on a parcel basis among various customer classes. All Proposed Fee Increases are calculated to recover costs. Because each customer may have a unique combination of services, please look at a recent bill to determine what services you have and use the table in Exhibit A to determine how your fees may be impacted.

 

Annual Adjustment

The Proposed Fee Increase for solid waste services would allow the fees to be adjusted annually to account for inflation and increases in material tip fees. Beginning July 1, 2023, and each July 1 thereafter, through and including July 1, 2026, the material tip fee component and the service component may be adjusted based on inflationary/fee changes multiplied by the component’s assigned percentage weighting as specified in the franchise agreement, to calculate the fee change.

  • Change to Material Tip Fee Component. This component will be adjusted for the percentage change in tip fees charged by the solid waste facilities that receive, and process waste generated in Desert Hot Springs (“Tipping Fees”). The assigned material tip fee weight will be proportionate to the service component based on total revenue at that time (currently 25.9% of the total fee for residential services and 13.0% of the total fee for commercial services). Roll-off service material tip fees will be based on the actual tip fee at the time collections are performed.
  • Change to Service Component. This component will be adjusted by the percentage change in the Consumer Price Index for All Urban Consumers for the Riverside-San Bernardino-Ontario Area (CPI-U), January to January. The assigned service fee weight will be proportionate to the material tip fee component based on total revenue at that time (currently 74.1% of the total fee for residential services and 87.0% of the total fee for commercial services). Roll-off service pull charges and miscellaneous services not involving material tip fees will be increased by the full amount of the change in the CPI-U.

Public Hearing and Protests

Proposition 218 allows you to respond to the Proposed Fee Increase prior to the close of the public hearing. Any property owner whose property is to be subject to the Proposed Fee Increase for the Solid Waste Services and any tenant directly responsible for the payment of such fees (i.e., a DVD customer of record) may submit a written protest to the proposed fee increases; provided, however, only one protest will be counted per identified parcel. You may use the form below. Any written protest must:

(1) State that the identified property owner or tenant is in opposition to the proposed fee increases;

(2) Provide the location of the identified parcel (by assessor’s parcel number or street address); and

(3) Include the name and signature of the property owner or tenant submitting the protest.

If the person submitting the written protest is the owner of record but was not shown on Riverside County’s last equalized assessment roll as the property owner, that person must provide written evidence that the person is the property owner. Written protests may be submitted by mail, email or in person to the City Clerk’s Office at 11-999 Palm Drive, Desert Hot Springs, CA 92240, provided they are received prior to the conclusion of the public comment portion of the June 7, 2022 Public Hearing. If submitting your protest by mail, please provide sufficient time for it to arrive prior to the close of the public comment portion of the public hearing. Written protests submitted via e-mail will be accepted. Please identify on the front of the envelope for any protest, whether mailed, emailed, or submitted in person to the City Clerk, Attn: Public Hearing on Fee Increases.

The City Council will consider all written protests and hear and consider all oral comments to the Proposed Fee Increase for Solid Waste Services and the annual fee adjustment at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the Public Hearing, the City Council will consider adoption of the Proposed Fee Increase. If written protests against the Proposed Fee Increase are not presented by a majority of the property owners of the identified parcels and tenants directly responsible for the payment of the solid waste service fees upon which the fees are proposed to be imposed, the City Council will be authorized to impose the Proposed Fee Increase as outlined above and add solid waste fees for single family residential properties to the County property tax bill. If adopted, the Proposed Fee Increase will take effect beginning July 1, 2022. The City is conducting this Proposition 218 majority protest proceeding out of an abundance of caution and without conceding the applicability of Proposition 218 to Solid Waste Services.

Questions

If you have questions regarding this notice or how your rates will be affected, please go to www.yoursustainablecity.com. The website has more information and examples of rate adjustments for typical customers. You can also call (760) 329-6411, Ext. 109 or email solidwaste@cityofdhs.org.

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