Barring a massive show of public disapproval before and during
the next meeting of the Merced City Council on March 16, leaders are expected
to raise the monthly rates Mercedians pay for refuse collection.
As reported in a Times story late last year when the ordinance
was being drafted, the rate increase would be a significant pocketbook hit for
many folks — and it’s set to start July 1.
Last week the City Council voted 5-1 to approve an ordinance
that will raise residential refuse rates a whopping 20 percent during fiscal
year 2020-21, and then 5 percent each subsequent year until 2024-25.
Business (commercial) rates will go up even more: 37 percent
during fiscal year 2020-21 and 10 percent each following year until 2024-25.
A second and final public reading of the ordinance is set for
March 16; however, if no leader or member of the public speaks out, the issue
is bound to be quickly passed with a list of other agenda items.
The lone leader who has voted against the steep increases is
Councilman Anthony Martinez, who urged his colleagues and city staff to come up
with alternative ideas — perhaps specialized lower rates for those consumers
who don’t generate a lot of garbage, or spreading out the rate increases more
evenly, or creating a lower reserve amount the city keeps on hand to fund its
refuse operation.
“I’m looking at ways that we can help the people,” Martinez
said. “It’s becoming something of an issue the people are concerned about,
obviously, and if we can come up with something to help ease [the cost] then
that may be something we want to do.”
Prior to the meeting, there were 22 letters of protest from
residents contesting the rate increase prior to last council meeting.
One letter sent to City Hall was also sent to the Times. It was
from Adam Cox, a local resident who is known for serving on the board of the
Merced City School District.
“I’d like to know: Why should the residents of the city be the
first to carry this burden?” Cox wrote. “Has the City of Merced, in good faith,
gone to the Merced County Association of Governments (MCAG) and demanded to
know why municipalities in Merced County pay significantly higher tonnage rates
than do jurisdictions from outside the county?
“You have a deficit problem. I get that. But why in the world
would you force hardworking people to pay more? In reality all we’re doing in
this county is subsidizing all of the out-of-county jurisdictions whose trash
MCAG accepts for pure profit and to the detriment of available landfill
air-space that future Merced County residents need? The Merced County Civil Grand Jury in their 2018-19 report detailed the
immense gap between in-county and out-of-county rates. We residents pay tipping
fees of $43.05 (exclusive of additional hauling expenses by third parties).
Cities and counties from outside the area? They’re at $19 – $25. Why are you OK
with this?
“Where were you guys when MCAG was making these sweetheart deals
for the past several years? Last fiscal year MCAG transferred $5 million of
“excess revenue” from its operating budget into its capital project budget. The
same was done ($4.6 million) in 2017. Why wasn’t a portion of that used to
lower rates of MCAG customers which in turn would lower rates for their
residents?”
“Shame on you for coming after your residents first instead of
playing hardball to lower your costs.”
Cox added to the Times, “What this is really about is the city
taking the easy route by forcing a massive increase on us instead of spending
time and energy (because that’s all it will really take) to push back on the
systemic inequity that MCAG makes millions of dollars of profit on each year.
Who’s here to serve who?”
According to the city’s consultant, R3 Consulting, the refuse
rate hikes are due to overall collection expenses which have risen 29 percent
since 2016. There’s also new California regulations coming down the legislative
pike, and an extremely tough ban of certain types of solid waste in China
that’s drastically shifted the global recycling market.
Then there’s more and more residential development that’s
increasing collection, according to the consultant.
Meanwhile the city has reported that rising refuse costs have
resulted in a $2.2 million deficit in their operation.
Officials say the refuse rate increase will bring down that
deficit.
The city is mandated to keep fee increases in line with the
proportional cost of the service. Revenues can’t be used for any other purpose.
With the new strategy, city officials have a goal of reaching a
16 percent operational reserve for their garbage service.
At present, residential refuse collection in Merced is actually
slightly higher than similar cities in other areas of California, according to
the consultant. But they also point out that cities across the state are going
through rate increases.
The statewide average rate for a 64 gallon cart is $33.51 a
month. In Merced, it cost $37.08 in 2019.
So the strategy is to have the city’s commercial clients bear a
higher percentage of the overall rate increase, mostly because the rates they
currently pay are up to 51 percent lower that those in neighboring and
comparable cities.
Leaders also want to include in those commercial rates some
funding for an annual $250,000 “litter abatement” contract for a private or
non-profit agency to supplement trash pickup in alleyways, along creeks, parks
and other problem areas throughout town.
At last week’s meeting, the city’s consultant mentioned the
group “Restore Merced,” which employs at-risk individuals in a program to
change lives. Mayor Mike Murphy has been vocal in his support of the program;
however, city officials mentioned in a previous meeting that the contract would
go out for public bids.
What’s the actual bill?
Here’s how the commercial refuse rates will start to add up for
businesses starting in July. Monthly commercial rates, including 3-cubic yards
each of garbage and recycling, and 64-gallons of organic collected once weekly,
would go from $202.12 to 276.90 (37 percent) in fiscal year 2020-21, an
increase of $74.78. But the rate increase drops to 10 percent or $27.69 more in
2021-22, or $304.59.
The proposed residential rates would increase 20 percent in
2020-21 and then 5 percent each year after that for three years. So a monthly
rate including 64-gallon garbage, 90-gallon green waste and 64-gallon recycling
collected once weekly would go from $37.08 to $44.50, or $7.42 more. In
2021-22, the rate would go to $46.73, or $2.23 more, and so forth.
A majority of city leaders have said they prefer a larger
increase upfront while the economy is doing fairly well, as opposed to
spreading more even increases over a five-year period, to get where the city
needs to be in regard to revenue vs. expenses.
Council member Jill McLeod noted that the city’s refuse rates
have not risen significantly for several years while operational costs have
continued to soar.
Mayor Murphy said: “It’s one of those responsibilities that we
have as elected officials — to make sure we have proper funding for those
essential services we provide.”
Merced County Times
Jonathan Whitaker
March 13, 2020
Merced County Times
Jonathan Whitaker
March 13, 2020
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