Property Owners and Tenants - Customers:

This notice is intended to inform you that Cambria Community Services District (“District”) will hold a public hearing regarding rate Adjustments (the “Proposed Rate Adjustment”) proposed by Mission Country Disposal for properties and customers receiving solid waste, recycling, and green waste services within the District. The Proposed Rate Adjustment 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 Adjustment;
• The Effective date of the Proposed Rate Adjustment;
• The Basis for the Proposed Rate Adjustment; and
• The Majority Protest Procedures.

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

Date: January 16, 2025      

Time: 10:00 a.m.

Place: 1000 Main Street Cambria, CA 93428

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At the Public Hearing, the Board will consider all public comment in support of and in opposition to the Proposed Rate Adjustment and whether or not a Majority Protest exists pursuant to the California Constitution. If approved, the Proposed 2025 Rate Adjustment would become effective on January 1, 2025 and annual adjustments would be effective each January 1 of 2026, 2027, 2028 and 2029.

Reason For and Basis of the Proposed Rate Adjustments

The Proposed Rate Adjustment for 2025 is based on the Garbage Company’s documented cost of providing solid waste services and is a 12.59% increase above current solid waste rates. This cost-based adjustment is necessary for the Garbage Company to continue to provide safe, environmentally sound and reliable solid waste removal, transportation and disposal services to the residents and businesses of the District. The adjustments are requested due to:

• Increases in organics processing costs – Third-party costs for the organic waste post-collection processing facility operated by the company formerly named Hitachi Zosen INOVA, and which are not within the Garbage Company’s control, have doubled since 2022. The change in cost is the result of changes in facility capital and operating costs.
• Increases in landfill disposal costs – Related party costs for landfill waste disposal at Cold Canyon have remained flat since 2016. The 2025 rate adjustment reflects a market adjustment to these costs, from a per ton tipping fee of $41 per ton (in place since 2016) to a per ton tipping fee of $70. The Garbage Company provided market comparison demonstrating the applicability of the $70 per ton market tipping fee.
• Collection costs including labor, vehicles, operating expenses and overhead – These costs are increasing approximately 4.21% in 2025.
• Adjustments necessary for moving to a new methodology for annual rate adjustments that provides for increased rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness. These include updated depreciation lifespans for solid waste collection vehicles, removal of a limitation on corporate overhead costs for legal, tax, payroll, human resources, engineering, compliance, IT, training and recruiting programs, and updated profit allowance in-keeping with industry standards.
• Adjustments for new service enhancements, including the ability for residents to exchange a solid waste collection cart once annually at no additional cost, no charge collection for one bulky item twice annually via clean-up weeks.

The Proposed Rate Adjustments for 2025 applicable to residential solid waste customers are shown in the table below.

In addition, commencing each January 1 of 2026, 2027, 2028 and 2029 solid waste rates will be adjusted based on the following:

• Annual change in the Bureau of Labor Statistics’ Consumer Price Index (CPI) for Garbage and Trash Collection in the U.S. all city average, with a minimum 2% adjustment and a maximum 5% adjustment. Amounts below the minimum or above the maximum will carry forward to the following year.
• Calculation of a 10% profit allowance starting in 2026 (estimated at additional 0.67% to 0.69% adjustment in 2026).
• Addition of a revenue balancing mechanism starting in 2027, wherein actual revenues from solid waste rates over or under projections carry forward as additions to, or offsets against, the annual CPI adjustment.
• Rate adjustments for January 1, 2026, 2027, 2028 and 2029 are not expected to exceed 7%.

The Proposed Rate Adjustments have been independently reviewed for consistency with the City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management dated June 1994 and in accordance with the provisions of the District’s Franchise Agreement with the Garbage Company, as amended, governing solid waste service within the boundaries of the District. The Proposed Rate Adjustments contemplate implementation of a new methodology for annual rate adjustments which is described in New Solid Waste Rate Adjustment Methodology and 2025 Rates report authored by independent reviewer, R3 Consulting Group, Inc. The consultant’s report and the complete set of proposed 2025 solid waste rates is available at the CCSD Administrative office located at 2150 Main Street, 1-A, Cambria, CA 93428.

How Do I Protest the Proposed Rate Adjustment?

Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest against the Proposed Rate Adjustment to the Confidential Administrative Assistant 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 limits. 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 limits (tenant-customer).

A valid written protest must contain a statement that you protest the Proposed Rate Adjustment, 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 Adjustment 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 Confidential Administrative Assistant before the close of the Public Hearing referenced above.

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

Cambria Community Services District

Attn: Confidential Administrative Assistant

P.O. Box 65, Cambria CA 93428

Written protests may also be personally delivered to the CCSD Administrative office located at 2150 Main Street, 1-A, 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 limits, then the District will not adjust the rates for the services. The CCSD serves 4010 parcels.

For more information, please take a moment to review the notice posted above.