Notice of Public Hearing Regarding Proposed Solid Waste Rate Increase

Update 9/15/2022: Atascadero City Clerk Lara Christensen certified her count of 658 protests to the solid waste and recycling service rate increases under Proposition 218, all of which are presumed valid, but failed to meet the majority of 2,011 protests.

Notice of Public Hearing

There are 3752 for residential customers and 266 for commercial customers for a total of 4018 service addresses that Mission Country Disposal services. There was 4018 proposition 218 letters sent to owners, so 50% would be 2010 +1 property owners.

This notice is intended to inform you that Cambria Community Services District (“District”) will hold a public hearing regarding rate increases (the “Proposed Rate Increase”) proposed by Mission Country Disposal (“Garbage Company”) for properties and customers receiving solid waste, recycling, and green waste services within the District. The Proposed Rate Increase will be considered by the District Board of Directors (“Board”) at the date, time, and location specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the following information:

The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.

The Public Hearing for the Proposed Rate Increase within the District limits will be held on:

Date: September 15, 2022

Time: 1:00 PM

Place: 1000 Main Street Cambria, CA 93428 or online as listed below:
https://us06web.zoom.us/j/89365420643?pwd=c1JYd1BqVlIySlA2WXBRdDZLenIvdz09
Meeting ID: 893 6542 0643 Passcode: 049957

Meeting information will also be available on the District’s website at www.cambriacsd.org
If the meeting information is revised, updated information will be available on the District’s website at
www.cambriacsd.org.

At the Public Hearing, the Board will consider all public comment in support of and in opposition to the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California Constitution (as described below). If approved, the Proposed Rate Increase would become effective on October 1, 2022.

How Do I Protest the Proposed Rate Increase?

Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest against the Proposed Rate Increase to the District Clerk before the close of the Public Hearing referenced above.

An owner(s) of property (parcel(s)) receiving solid waste, recycling, and green waste services within the District boundaries. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain or be accompanied by written evidence that such person signing the protest is the owner of the parcel(s) receiving services; or
A tenant(s) whose name appears on Mission Country Disposal’s records as the customer of record for the corresponding parcel receiving solid waste, recycling, and green waste services within the District boundaries (tenant-customer).

A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or Assessor’s Parcel Number (APN) of the parcel or parcels which receive solid waste, recycling, and green waste services, and a signature by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subject to the requirements of Section 6 of Article XIII D of the California Constitution. Written protests will not be accepted by e-mail or by facsimile. Verbal protests will not be counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the District before the close of the Public Hearing referenced above.

Written protests regarding the solid waste rate increase may be mailed to:

Cambria Community Services District

Attention: Board Secretary

Po Box 65

Cambria, CA 93428

Written protests may also be personally delivered to the District office located at 1316 Tamsen Street, Suite 201 Cambria, CA 93428.

If valid written protests are presented by a majority of owners and/or tenants-customers of parcels receiving solid waste, recycling, and green waste services within the District boundaries, then the District will not adjust/increase the rates for the services.

Reason for the Proposed Rate Increase

The Proposed Rate Increase is 41.46 percent for solid waste, recycling, and green waste/organics collection services. In addition, there will be a temporary 20.73 percent increase to recover revenue lost due to this Proposed Rate Increase being delayed from July 1, 2022 to October 1, 2022 for a total of 62.19 percent. This temporary revenue recovery component will expire April 1, 2023. The increase is necessary for the Garbage Company to continue to provide safe, environmentally sound, and reliable solid waste, recycling, green waste/organics collection, transportation and disposal/processing services to the residents of the District. Several factors contributed to this Proposed Rate Increase including, but not limited to: increased costs associated with the purchase and operation of collection vehicles, fuel costs, labor costs, and increased costs associated with the organics digester facility.

The organics digester facility is required by California Senate Bill 1383 (SB 1383), and previously approved California Assembly Bill 1826 (AB 1826). SB 1383 is a recent State law passed with the goal of reducing methane. Methane is a potent greenhouse gas, with more than 80 times the warming power of carbon dioxide, and is a major component of decomposing organic waste. In response to the harmful effects of methane gas, Cal Recycle (a branch of the California Environmental Protection Agency) adopted regulations implementing SB 1383 in the fall of 2020. Key components of SB 1383 include implementing organic waste collection programs (including food waste), monitoring organics carts for contamination, and reporting data. AB 1826 requires local jurisdictions to develop a program to divert organic waste from landfills to an authorized composting facility like an anaerobic digester.

Basis on the Proposed Rate Increase

The Proposed Rate Increase of 41.46 percent is based on the following cost increases incurred by the Garbage Company:

6.48 percent of the Proposed Rate Increase is for capital investment costs of new collection vehicles, replacement containers and additional containers to meet the demands of SB 1383 compliance.
6.13 percent of the Proposed Rate Increase is for increased capital equipment investments and escalating operating expenses related to the organics digester facility.
6.17 percent of the Proposed Rate Increase is for market wage adjustments to attract and retain safe, quality employees.
2.74 percent of the Proposed Rate Increase is for increases in insurance premiums.
2.52 percent of the Proposed Rate Increase is for increased gas and oil costs.
1.59 percent of the Proposed Rate Increase is for increases in other operational expenses including a Consumer Price Index increase of 5.3 percent.
7.83 percent of the Proposed Rate Increase is for recovery of the deficit in the revenue requirement
8.0 percent of the Proposed Rate Increase is related to the allowed profit margin

The additional temporary 20.73 percent recovery rate increase is for the delayed rate implementation that was no fault of the Garbage Company. The total Proposed Rate Increase implemented October 1, 2022 will be 62.19 percent. The temporary 20.73 percent recovery rate increase will expire April 1, 2023, net of any Consumer Price Index adjustment as discussed next.

In addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the following:

Increases, if any, in the Consumer Price Index (CPI) for Bureau of Labor Statistics’ Consumer Price Index for Urban Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024.

A copy of the 2022 Base Year Rate Adjustment Application, which provides additional information on the Proposed Rate Increase, is available at the District office located at 1316 Tamsen Street, Suite 201 Cambria, CA 93428.