Saturday, March 12, 2011

Pacifica resident wins settlement against trash hauler

Updated: 03/12/2011 04:56:33 PM PST


PACIFICA -- Residents will have the right to protest upcoming trash service fee increases in Pacifica, thanks to a lawsuit settlement won by a local resident who challenged the city's no-bid contract with Recology.

Longtime waste hauler watchdog Lionel Emde complained that trash service ratepayers were getting ripped off when the city approved a 17-year no-bid contract with Recology last February. The waste and recycling company quickly imposed a 5 percent rate hike, and the city got a $100,000 bonus "assignment fee."

Pacifica's general fund was guaranteed annual franchise fees amounting to an 11 percent take of Recology's gross income.

Pacificans' garbage fees are already among the highest in San Mateo County.

Emde's suit claimed the city did not comply with a requirement under Proposition 218 that gives property owners the right to vote on rate increases for certain services, such as sewer and water rates. The settlement, which was announced last week, allows Pacifica residents to overturn proposed trash service rate hikes if a majority vote against it.

"It's a huge victory. People will have the right to protest and there will be a hearing at which there will be a public accounting," said Emde.

The settlement also prevented the city from collecting a $10,000 "contingency fee" outlined in the franchise agreement, and it capped the city's yearly franchise fee at $805,000 per year through 2017 -- as opposed to the past practice of taking an annual percentage of Recology's income.

"It gave elected officials an incentive to let rates rise more quickly because the more rates rise the more the city would take in," said Emde. "That's over now."

Emde did not request a financial settlement beyond his legal fees, which were paid though the settlement.

Pacifica City Attorney Cecilia Quick said pursuing a settlement was a "business decision." She believes the city would have prevailed in court in the long run, but it would have been a costly and complicated case. The city spent more than $100,000 in legal fees defending the case.

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Posted by Steve Sinai

3 comments:

todd bray said...

While some criticize Lionel for his efforts concerning this he has increased our ability to self govern by forcing an unwilling senior staff to conform to state law.

Lionel brought this issue up with our city senior staff on several occasions only to be disregarded in the most insulting of ways by being ignored.

Lionel did not cause the city to spend all the funds it did on outside attorneys for the city and Lionel's legal representative. Hubris on the part of our paid city management did.

We can now contest garbage rate increases with voting power thanks to Lionel. Increasing garbage fees is no longer an act of sovereignty by senior staff and the city waste hauler.

Kathy Meeh said...

Todd, yep, I heard Lionel was blocked from advancing his concerns at city hall. And, as a citizen with a legitimate concern he was treated like an enemy (you know we citizens pay most of the overhead of the city).

Anyhow any cost implications are attributed to city legal management. Fortunately, this time a settlement occurred early.

Lionel Emde said...

I thank Todd and Kathy for their observations.

For readers: You have the right to resist.
The fire suppression assessment can be voted NO.
If you discarded the ballot for any reason, you may request another.

The sewer rate increase will be mailed soon. It's a 3.4 percent increase. When you receive it, you have the right of protest: Mail a letter (or hand deliver) to City Clerk, 170 Santa Maria Ave., Pacifica, CA 94044. The letter must have the assessor's parcel number,(APN) and your signature as the property owner. A street address included for the property is an additional insurance.

Same deal for the garbage rate increase, bet on 8 percent for an increase. You have the power of protest: Use it!