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HomeMy WebLinkAbout2023/04/26 - Minutes April 26, 2023 | Public Works Subcommittee City of Rancho Cucamonga | Page 1 of 5 April 26, 2023 CITY OF RANCHO CUCAMONGA | PUBLIC WORKS SUBCOMMITTEE SPECIAL MEETING MINUTES A special meeting of the Rancho Cucamonga Public Works Subcommittee was held on Wednesday, April 26, 2023, in the Rains Conference Room of the Rancho Cucamonga City Hall located at 10500 Civic Center Drive, Rancho Cucamonga, California, Mayor Pro Tem Lynne B. Kennedy, and Council Member Ryan A. Hutchison called the meeting to order at 4:00 p.m. A1. Roll Call: Present Council Members: Mayor Pro Tem Lynne B. Kennedy, and Council Member Ryan A. Hutchison. Staff Present: Fred Lyn, Deputy Director of Engineering Services/Utilities, Justine Garcia, Deputy Director of Engineering Services, Linda Ceballos, Environmental Programs Manager, Scott Rapp, Environmental Programs Coordinator, Marissa Ostos, Management Analyst, A. Linda Wyman, Administrative Assistant Public: Michael Heftman, Burrtec Waste Industries, Inc. B1. No public communications were made. C1. Approve and File Minutes of September 21, 2022: Councilmember Hutchison motions for approval and Mayor Pro Tem Kennedy seconds approval of previous meeting minutes. C2. Review Revised Rate Adjustment of the City’s Franchise Waste Hauler. Scott Rapp began by providing the timeline of the rate adjustment packet. Per Scott Rapp, on February 24, 2023, the City received a request for a rate adjustment packet from Burrtec Waste Industries, Inc., and a revised rate packet on March 27, 2023, due to the new amendment to the franchise agreement. The amended agreement was approved in August 2022. There is a new component in the rate, due to the amended rate methodology. The five components of the rate are: • There is an annual 5% CPI cap on Burrtecs’ service component. • It also includes a pass-through cost of disposal and processing. • A franchise fee of 15% • HHW fee that increased from .75% to 1.75% to make up for the increase in disposal cost of residents dropping material off at the HHW facility. • Page two of the handout outlines SB 1383 fee, which is an addition to this rate methodology. In the new SB 1383 fee component, there is going to be 77 cents added to the formula for each residential customer. In addition to, 38 cents per cubic yard for commercial customers that take into consideration the requirements of SB 1383. This is due to the requirements for municipality and franchise haulers to A. CALL TO ORDER – RAINS CONFERENCE ROOM B. PUBLIC COMMUNICATIONS C. ITEM(S) FOR DISCUSSION April 26, 2023 CITY OF RANCHO CUCAMONGA | PUBLIC WORKS SUBCOMMITTEE SPECIAL MEETING MINUTES April 26, 2023 | Public Works Subcommittee City of Rancho Cucamonga | Page 2 of 5 implement mixed green waste recycling, and food recovery. Included in the SB 1383 rate of 77 cents, is the outreach and education part of the rate, record keeping and enforcement. There are two additional portions to the SB1383 fee, that are not included in the current SB1383 fee. This includes, edible food rescue, and procurement of recovered organics. They are currently being funded by a two year grant, and will depend on if the grant is extended out past the two years. Once the grant expires, these portions will be added to the SB1383 fee. It could possibly roll into the 77 cents, or it could increase. Additionally, the revised rate methodology includes a 24-month rate cycle, whereas in odd years, we’ll go to City Council, and a public meeting will be held, and approve the rates. In the revised methodology, in even years, the rate adjustment will have a look back provision and true up the disposal and processing costs, as well as the SB1383 costs, and the service component of CPI. For example, if this rate packet is approved, rates will go into effect July 1, 2023, however, we’re also approving 2024’s estimates and in 2025 when we go back to City Council, they will look back at the processing fees and true up the numbers, increasing or decreasing the rate, depending on what the actual costs are. Another addition to the revised methodology, is that in order to avoid an off-cycle rate adjustment during the economic times, Burrtec proposed to the City to implement residential food waste/mixed organics, as required by the state in September 2022 through June 30, 2023, without adjusting the rates. Burrtec has the ability to recoup the cost over a five-year period, beginning with the next rate adjustment in 2023 and ending in 2027. Page 3 illustrates a breakdown of the residential components, such as the HHW fee (1.75%) and then the 77 cent SB1383 fee, MRF Fees, franchise fee (15%), landfill and disposal fee, organics disposal, and service component, adding up to $30.57 for the residential rate. The next page shows the different percentages of the rate adjustment, the residential rate increased by 5% from the current rate to the proposed 2023 rate and increased by 9.5% in 2024. The number can increase or decrease based on the look back provision. A new rate was proposed in the rate packet, which included bulky item pick-up for all multi-family and commercial accounts. Scott Rapp provided the background for this new proposed rate. A few years ago, some of the private businesses had issues with illegal dumping on their properties. Business owners reached out to the City, to discuss options and address this issue. The City requested that Burrtec provide a pilot program which involved 19 multi-family complexes, where there was a high number of illegal dumping. The map is on page 5 of the handout. It includes complexes west of Haven, and North of Hermosa. Mayor Pro Tem Kennedy asked if those are the areas where they had the most illegal dumping. Mr. Rapp replied that is the multi-family that is just north of the commercial area where industrial complexes were found to have illegally dumped bulky item products. The multi-family, and commercial customers with bin service will be the accounts that receive a bulky item collection service. It will be a bundled rate, that includes recycling, and trash. Multi-family will be routed once a week, and the commercial facilities would get unlimited pick-up, however they would need to contact Burrtec for service. Mayor Pro Tem asked to provide more information on the multi-family pilot program, and what the outcome was. Mr. Rapp explained that at the 19 facilities, they had a total of 2,481 units that were serviced for bulky item, and a total of 24.98 tons were collected. The pilot program began in February 2022 and ended in February 2023. An estimated collected pounds per unit is estimated at 20 pounds. Mayor Pro Tem asked if this proposal would distribute the additional cost of bulky items, having done once a week spread across multi-family. Mr. Rapp explained that it is spread throughout all of the multi-family. There’s April 26, 2023 CITY OF RANCHO CUCAMONGA | PUBLIC WORKS SUBCOMMITTEE SPECIAL MEETING MINUTES 103 multifamily complexes within the city limits, they have an estimate of 15,572 units total, and within those estimated pounds collected 313,000 pounds or an estimate of 156 tons. Mayor Pro Tem asked if they attributed that bulky item to this transitioning rate, such as people moving out and need to leave bulky items behind. Mr. Rapp clarified this is just for multi-family, and page 6 reflects the commercial and multifamily rate and that includes with the bulky item fee. Councilmember Hutchinson asked if the majority of the rate increase for the new multi-family rate with bulky item is increased by 19%. Mr. Rapp clarified that if the bulky item was not implemented, it would be about $225, and an 8% difference. The rate for bulky item is $237, which is a 19% increase, a twelve dollar difference from the rate without the bulky item included. Councilmember Hutchinson asked how multi-family bulky item pick up would work. Mr. Rapp clarified that multi-family would be serviced once a week. Mr. Heftman also explained that it would be routed, on service day, bulky items are to be placed right next to the enclosure similar to the multi-family the pilot program, labels would also be used. The process for commercial accounts is slightly different from multi-family. For commercial bulky item, if a driver sees that a bulky item is out, Burrtec will collect it. This practice will be done throughout the city. Drivers will be designated to the bulky item system. Commercial drivers will be collecting illegally dumped or bulky items as they come across them. Council member Hutchinson asked to clarify for Commercial, if they would have to call or would it be routed automatically? Mr. Heftman indicated that both practices would take place. If a driver observes bulky items at business enclosures, they will call to get it scheduled for pick-up. Mayor Pro Tem Kennedy asked what the bulky items would include. Mr. Heftman explained that it would include couches, chairs, mattresses, etc. which are often found in the enclosures. Mr. Rapp continued to explain that on page 7 of the handout, the rate packet also includes new service rates. It includes 95-gallon barrels for commercial accounts. As well as, 15 to 35 gallons for mixed organics multi-family customers. There is also a 15 gallon to 35 gallon food waste barrels for restaurants. The variation in sizes are due to space constraints, or if businesses or multi-family produce less volume they can pay less for the service. Burrtec also provided downgraded sizes, for those do not have enough room for a 3-yard bin. Another new rate that has been added to the rate packet is the barrel and bin exchange for commercial accounts. In the past, there have been issues where bins and carts are either missing or damaged. The first exchange/replacement is free, and the second replacement would get charged per the rate schedule. Councilmember Hutchison asked if the 95-gallon barrels are the same size as residential barrels. Mr. Rapp confirmed that those are the same size. Mr. Rapp also went on to explain that there are also 35 gallon containers, that are retrofitted with a false bottom, and measure up to 15 gallons. Mr. Rapp went on to explain that a consultant also reviewed the rate package, and provided a draft of their findings. The final draft is expected back by the consultant April 27, 2023. In the draft report, the consultant confirmed that Burrtec calculated the rate formulas correctly. The CPI method that was used was the Riverside- San Bernardino- Ontario index, and this was found to be correct. The franchise and HHW fee were calculated correctly. The SB1383 fee was also reviewed, and found that the appropriate back-up documentation provided by Burrtec to the consultant was found reasonable. The consultant also confirmed that the bulky item per yard rate was calculated correctly. April 26, 2023 | Public Works Subcommittee City of Rancho Cucamonga | Page 3 of 5 April 26, 2023 CITY OF RANCHO CUCAMONGA | PUBLIC WORKS SUBCOMMITTEE SPECIAL MEETING MINUTES April 26, 2023 | Public Works Subcommittee City of Rancho Cucamonga | Page 4 of 5 Mr. Rapp indicated that the next steps include; proposition 218 requirements, which require public hearing notices to be mailed out at minimum 45 days prior the public hearing. The public hearing notice will be published in the Inland Valley Daily Bulleting newspaper on May 2, 2023. Public hearing notices and the rate exhibit will be sent by mail to each residential and commercial account, on May 5, 2023. The public hearing is scheduled for June 21, 2023. This concluded Mr. Rapp’s presentation, and Public Works Subcommittee members had final questions before concluding. Councilmember Hutchinson asked for clarification if the amendment that is adjusted during mid-cycle for 2024 is due to SB1383 Fee, and Mrs. Ceballos confirmed it was for the SB1383 fee as well as consumer price index. It was also confirmed by Mrs. Ceballos to Councilmember Hutchison that the lookback provision can cause the rate to decrease or increase. Councilmember Hutchison asked if the current $34.00 plus $12.47 is the current rate for commercial accounts. Mr. Rapp confirmed, that is correct, the additional amount that they pay now per bulky item pick-up request. Councilmember Hutchison wanted clarification if the HHW .75% increase to 1.75% increase is related to the HHW facility that is off of Lions Street. Mrs. Ceballos confirmed that the HHW fee that is collected by Burrtec and provided to the City is used to pay for disposal costs at HHW. Councilmember Hutchison asked for an update on food waste pails. Ms. Ostos confirmed that we gave out approximately 300-400 pails, and have about 400-500 in stock. They are purchased through the state grant, and can be given out to residents that sign up online, or available at weekend events such as CVWD Earth Day event. Councilmember Hutchison asked to clarify the threshold requirements for proposition 218, and minimum percentage for sending out notices. Mrs. Ceballos explained that is always the practice to send out notices, whether it is 1% or 10% adjustment. The most notable difference is there will be two increases before the next rate recycle. The public hearing notices are going to have rate adjustment for 2023 and 2024. An alternative is to choose a five-year adjustment, in which some cities elect to send out notices and hold one public hearing, and implement an increase every year. Burrtec had requested to do a rate review every year, however the City opted to stick with a rate review every two years. Mrs. Ceballos goes on to explain that there are a lot of changes with this rate package, and some of the adjustments to the volume density actually reduced from the last rate review. For example, food waste reduced in volume and the density that was calculated per container decreased, it was the same for recycling as well. Mr. Fred Lynn agreed that there is no threshold to send out proposition 218 notices, and any adjustments should follow the proposition 218 requirements. Councilmember Hutchinson requested that Public Works Subcommittee members receive a copy of the final report from the consultant when it is available and confirmed that is all the questions and comments he had. Mrs. Ceballos added that the multi-family and commercial do receive outreach materials, such as quarterly newsletter and annual brochures. Information regarding bulky item is being pushed out to multi- family and commercial accounts so that they are aware of the practices. Mrs. Ceballos also added that when recycling was proposed as a bundled rate, it increased for those that did not have recycling service to about 25%. However, those that already established recycling service with Burrtec, saw a decrease in their bill. In this case the multi-family and businesses are either paying Burrtec for bulky item or doing something else with it. If this rate packet is approved, there will be one uniform program. It is common for staff to receive phone calls from residents that live in a multi-family complex that try to arrange a bulky item pick-up, and the property management does not want to take on that responsibility, it is difficult to bill the resident if they do not have an account with Burrtec. The bulky item bundle rate provides uniformity, and less impact on business and multi-family. April 26, 2023 CITY OF RANCHO CUCAMONGA | PUBLIC WORKS SUBCOMMITTEE SPECIAL MEETING MINUTES April 26, 2023 | Public Works Subcommittee City of Rancho Cucamonga | Page 5 of 5 Mr. Rapp also added that looking at it from an aesthetic point of view, illegally dumped items will be picked up right away and automatically included in their rate, the property management does not have to take on the burden of the cost when something is illegally dumped. Mr. Heftman added that this helps out every property manager. If there is a problem with illegal dumping, they can also share with their tenants on who to contact, and will decrease the likelihood of illegal dumping. It also takes the pressure off of commercial vendors that always have their barrels and bins full. Mayor Pro Tem Kennedy agreed that is a nice perk. D1. The Public Works Subcommittee meeting adjourned at 4:23 p.m. Councilmember Hutchinson made a motion to move forward with noticing and accept hearing for City Council. Mayor Pro Tem Kennedy second the motion. Respectfully submitted, Date: __________________________________ Jason C. Welday Director of Engineering Services/City Engineer D.ADJOURNMENT April 29, 2025