Minutes 1999 0614 - Laserfiche WebLink

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Minutes -City of San Leandro City Council and Page 11 San Leandro Redevelopment Agency Joint Special Meeting -- June 14,1999 5. NEW BUSINESS A. Matter of Giving Notice of Refuse Enterprise Fund Rate Increases (sets Public Hearing date of August 2, 1999, for a required Public Hearing, in accordance with Proposition 218, for adoption ofproperty-related fees). The City Manager gave a brief overview of the matter of the Refuse Enterprise Fund rate increases. City Council discussion ensued regarding whether the City Council agreed, philosophically, with raising refuse fees when the issue of privatization is being reviewed. City Council clarified that $1.8 million is owed to the General Fund by the Refuse Enterprise Fund. Council Member Glaze noted the City is subsidizing 60% of the residents at the expense of 100% of the residents. The need to have the Refuse Enterprise Fund self-sufficient was expressed. He stressed the need to be self-sufficient and to recoup funds, which, in turn, would provide financing for other services. Vice Mayor Galvan commented it is common for the government to subsidize services. He also stressed the need for the City to be out of the garbage business. He questioned why the City Council would consider an increase in rates when it would stand to benefit private business if the service is sold? Further City Council discussion continued regarding the role of the recently appointed Citizens' Ad Hoc Committee on Refuse Services. It was also noted the Enterprise Fund needs to operate like abusiness - it should pay its way. Council Member Loeffler suggested that, perhaps, the City Council should stop appointing committees and make some tough decisions. He stated he believes the City can sell the refuse service in six months; but, at the same time, the City should move forward with the rate increases while getting out of the garbage business. He reminded everyone the City has not increased rates since 1992. Council Member Grant indicated, either way, it will likely result in a rate increase. She is supportive of a rate increase for equitability for services and costs. Council Member Nardine agreed with Council Member Glaze, indicating residents need funds for the unmet needs that are not currently funded. Council Member Lothrop commented that privatization means, ultimately, higher fees and, perhaps, layoffs of City employees, as well as the possibility of unions. She doesn't believe privatization will take less than a year and expressed concern with what the debt would be a year from now.