Michael Wolf, director of public works for the City of Oxnard, recommended the City Council approve the first reading by title only and waive further reading of an ordinance to remove an infrastructure use fee (IUF) component from the city's single-family residential solid waste rates.

Why it matters: Wolf told the council staff is proposing the change because a June 2025 Court of Appeal decision in the City of Redlands found that city's IUF violated Vehicle Code section 9400.8 and the California Supreme Court denied review in August, leaving the Redlands ruling final. That decision created a direct conflict with a prior local interpretation noted in a 2017 case and a 2024 action that had included a cost-based IUF in Oxnard's ER division rates.

What staff said: Wolf said a March staff report confirmed earlier compliance with a 2021 ruling that had allowed a properly designed, cost-based IUF, and that the IUF component in the ER rates was approximately $2,000,000 annually. He said adjustments were made in October and that, from January through October 2025, about $1,700,000 collected for the IUF portion of the single-family rate remains in the ER resources fund rather than the street maintenance fund.

Fiscal impact and next steps: Removing the IUF will lower single-family monthly solid waste rates as presented for 64-gallon 3-cart service, 96-gallon 3-cart service and extra 96-gallon cart service, Wolf said. He explained the change reduces revenues and, because the IUF transfer from ER to the street maintenance fund will no longer occur, there will be less funding available for street paving capital projects. Wolf noted ER rates had been approved by the council through fiscal years 2028 and 2029 and that future adjustments will be made pursuant to the cost-of-service report.

Action on the item: Staff presented a recommendation for first reading; the transcript records the recommendation but does not record a council motion, second, or vote.