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G1. Solid Waste Assessment Public HearingITY OF cKALISPELL To: Doug Russell, City Manager From: Susie Turner, Public Works Director Re: Public Hearing on Adjustment Increases to the Solid Waste Assessment Meeting Date: July 5, 2022 BACKGROUND: The Solid Waste Fund supports services for the collection and transport of solid waste to the landfill for residential and commercial customers within the City limits. As part of the preliminary budget process, it was identified the Solid Waste Assessment Fund required a review for potential assessment adjustments. The Fund's projected revenue using the current assessment criteria did not provide the finances to maintain the same level of service for the upcoming fiscal years. Additionally, the current finances do not support adding solid waste service accounts within the City that are adjacent to the established routine service areas. On May 16, 2022, staff presented, and City Council participated in work session discussions to review the status of the Fund's services, service capabilities, equipment replacement schedules, and financials. A copy of the presentation summary can be found on the City's website at Solid Waste I Kalispell, MT. As a result of the work session meeting, Council directed staff to proceed with public outreach and setting a public hearing date to receive comments on the proposed four-year step assessment increase that supports: 1. Continued level of service for current customers and account for expenditure increases due to inflationary costs 2. Adding resources (1 FTE) to provide service in new areas within city limits 3. Maintaining reserve levels that are financially reasonable and responsible 4. Maintaining equipment replacement reschedules for the short term 5. Performing a comprehensive Business Plan Update in FY 23 to review solid waste service and policies. A public hearing date was established for July 5, 2022, and an extensive effort was undertaken to educate the public on the proposed four-year step assessment increase. A legal notice of the proposed solid waste assessment increase was sent to 5,915 customers, the City's website offered educational information on the subject, and multiple news and social media venues advertised the proposed amendments. A summary of the comments and City responses are provided as an attachment. The July 5t1i Public Hearing is limited to listening to the public regarding Council's intent to act upon the proposed solid waste assessment increase. Action by the Council shall take place thereafter at a subsequent Council Meeting. ATTACHMENTS: Solid Waste Assessment Increase Legal Notice Public Comments Log, Response, and Summary CITY OF KALISPELL June 7, 2022 To City Solid Waste Customers: City Clerk and Communications 201 1st Avenue East, PO Box 1997 Kalispell, MT 59903 406-758-7756 cityclerk@kalispell.com A study of the City of Kalispell Solid Waste Division has determined that the current structure will not provide the finances to maintain the same level of service for the upcoming fiscal years and do not support adding solid waste service accounts within the City that are adjacent to the established routine service areas. Public Works staff has determined that a short-term four-year step assessment increase is necessary to support continued level of service for current customers and account for expenditure increases due to inflationary costs; additional resources to provide service in new areas within city limits; reserve levels that are financially reasonable and responsible; and having a reliable fleet by maintaining equipment replacement schedules for the short term. Prior to initiating any increase in the fees, schedules, rates, charges, and classifications, the City is required, pursuant to Section 69-7-111, Montana Code Annotated, to hold a public hearing on the matter after giving due and proper notice of said hearing. Attached to this letter you will find the hearing notice and the ways in which you can provide public testimony about this proposed increase. Please note that in addition to attending the public hearing in person, the agenda for the July 5, 2022, Council meeting will include a video conference (Zoom) link for virtual attendance. The proposed increase is as follows: Exhibit A Annual Solid Waste Assessment Charge FY 23 FY 24 FY 25 FY 26 Size (Gallon) Current 15% 5% 5% 5% 90/100 Residential $111 $128 $134 $141 $148 300 Commercial $338 $389 $408 $428 $449 400 Commercial $411 $473 $497 $522 $548 Notes: rates are for one pick-up per week NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN, that on the 5th day of July 2022 at 7:00 o'clock p.m., in the Council Chambers, Kalispell City Hall, 201 First Avenue East, Kalispell, Montana, the City Council of the City of Kalispell shall hold a Public Hearing on proposed amendments to the Regulations of the City Solid Waste Utility. A copy of the proposed amendments can be viewed at the Public Works Office or the City Clerk's office in City Hall at 201 First Avenue East, or on the city's website at www.kalispell.com/679/Council-Public-Hearings. Written comments may be submitted to the City Clerk at the above noticed meeting, or prior to the meeting either by mail at P.O. Box 1997, Kalispell, MT 59903, by email to publiccomment(cr�,kalispell. com or in person at City Hall, 201 First Avenue East. For further information contact the Public Works Department at (406) 758-7720. Sincerely, Aimee Brunckhorst, CMC City Clerk Publish: June 12, 2022 June 26, 2022 July 3, 2022 Public Comments Log, Response, and Summary Public Outreach Effort An extensive effort was undertaken to educate the public on the proposed four-year step assessment increase. A legal notice of the proposed solid waste assessment increase was sent to 5,915 customers, the City's website offered educational information on the subject, and multiple news and social media venues advertised the proposed amendments. Comments were received via email and phone calls correspondence. All of the comments and responses were logged and are provided as an attachment in a table format. Overall Comments Received As of June 29th, the City has received nineteen (19) comments/inquires on the solid waste services and assessment increase. Eighteen of the comments were from residential customers, and the remaining comment was from an undefined customer class. Comments Summary The comments received were categorized as For, Against, or Neutral based on the content of the comment. In general, For represented comments that were not against an assessment increase (noting one For response does not support increase due to growth), and Against represented comments that were outright against an increase. Neutral represented interactions regarding questions on the assessment and how they as a customer would be affected, four resident signed up for service after receiving the outreach information, etc., but gave no indication if they were For or Against the proposed rate increase. The pie chart below summarized the responses received into the three categories. 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