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HomeMy WebLinkAboutMinutes - City Council - 1999-05-03 103 City Council, Special Meeting Council Chambers 1313 California Street Redding, California May 3, 1999, 7:00 p.m. The meeting was called to order at 7:00 p.m. by Mayor Anderson with the following Council Members present: Cibula, Kight, Pohlmeyer, and McGeorge. Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, City Attorney Wingate, Director of Public Works August, Administrative Services Director Bachman, Support Services Director Kersten, Wastewater Superintendent Craig, Solid Waste Manager Miralles, Finance Officer Strong, Transportation Manager Duryee, Solid Waste Supervisor Carvalho, Management Analyst Horisk, City Clerk Strohmayer, and Executive Secretary Miller. WORKSHOP AND PUBLIC HEARING -Adjustments to Solid Waste Rates and Water and Wastewater Rates (S-020-500, W-030-400, W-020-590) City Manager Warren announced that following the Solid Waste, Wastewater, and Water Utility rates workshop of February 20, 1999, Council directed staff to gather additional information and rework its recommendations, phasing increases in over a five-year period. He related that staff has reduced the original proposal of fees by 20 percent and the increases now represent less than 2 percent of the average utility bill. He admitted that while the decision to increase rates is difficult, the Utility would otherwise be driven into debt. Mr. • Warren stressed that the proposed rate increases are not being implemented to absorb the cost of additional personnel or higher salaries. In response to Mayor Anderson, City Attorney Wingate advised that following the Utility workshop, it would be appropriate to hold a joint public hearing. Adjustments to Solid Waste Rates (S-020-500) Assistant City Manager Perry provided an overview of the Report to City Council dated April 23, 1999, relating to the consideration of Solid Waste rate adjustments and increases. He suggested that the City evaluate rates on an annual basis and be prepared to respond to market change while looking for ways to control future costs through automation. Mr. Perry indicated that the last Solid Waste rate increase occurred in August 1992. Mr. Perry presented overhead slides which outlined the Utility's operating costs, proposed rate increases, and Utility service options. He summarized the proposed new service charges as contained in the Notice of Public Hearing, including rates for residential collection, commercial containers (dumpsters), front load compactors, drop box collections, and large trash compactors, as well as self-haul charges at the transfer facility. Assistant City Manager Perry recommended that City Council adopt a resolution approving new solid waste utility rates and charges, effective July 1st of the years 1999 through 2003. Council Member Cibula related concerns of the effects of Solid Waste fee increases on property owners with existing building leases, as indicated in a letter received from Attorney Jeffrey Swanson dated May 3, 1999, representing Gary and Patsy Knighten. Mr. Swanson suggested rather than property owners paying for Solid Waste collection, the City charge tenants the residential rate. He opined this would be more fair to property owners as well as generate additional income for the City. 05/03/99 104 Mr. Perry stated that the Utility will send out notices of any service changes and each case will be handled separately. He advised that property owners will have the option to collect a surcharge from tenants, but that the proposed changes will affect less than 100 customers. Adjustments to Water Utility and Wastewater Utility Rates (W-030-400, W-020-590) Director of Public Works August provided an overview of the Report to City Council dated April 26, 1999, relating to the cost-of-service and rate-adjustment analysis prepared by the Keese Company providing justification and recommendations for the Water and Wastewater Utilities annual rate adjustments. He noted that at the February 20, 1999, workshop, staff was directed to review its recommendations to ensure adjustments were minimized while providing sufficient operations and quality service. Mr. August indicated that the Keese Company report shows the Water and Wastewater Utilities entering a net negative cash balance in the next two-year budget cycle, but depicted that Option 2 in the Report to City Council reflects a 10 percent operating reserve, which Mr. August said will provide sufficient funding of the Utility while allowing for some critical capital improvements. Director of Public Works August recommended that staff be directed to prepare ordinances incorporating Water and Wastewater rate adjustments for introduction at the City Council Meeting of May 18, 1999, as depicted in the Report to City Council. Mr. August, responding to Mayor Anderson, indicated it is possible a reduction could be passed on to the consumer should the 23 percent electric surcharge be discharged sooner than scheduled. In response to Council Member Cibula, Mr. August explained that the Department's greatest expense lies in the capital replacement program, particularly for Wastewater and Sewer, but that replacement is more cost beneficial than maintenance. He advised that the Water Utility is reaching its capacity to deliver water and that a planning process needs to be undertaken for expansion of the water treatment plant. Council Member Cibula asked whether health and safety issues are involved, to which Mr. August replied affirmatively. In response to Council Member Kight, who wondered whether the previously discussed "million-dollar fund" could be included in the Wastewater Utility's reserves, Mr. August indicated that the fund is identified in the proposal as an operating reserve. City Manager Warren advised Mayor Anderson that the proposed rate increase totals approximately 1.5 percent, including electrical charges. PUBLIC HEARING - re Solid Waste, Water, and Wastewater Utility Rate Adjustments (S-020-500, W-030-400, W-020-590) Mayor Anderson opened the public hearing re Solid Waste, Water, and Wastewater Utility rate adjustments. The following documents are on file in the office of the City Clerk: Affidavits of Publication -Notices of Public Hearing Reports to City Council dated April 23 and April 26, 1999 City Clerk Strohmayer advised that letters of protests were received from Wagner Electric and Attorney Jeffrey Swanson representing Gary and Patsy Knighten. Carl Arness, 2216 Oak Ridge Drive, expressed concern of the possible effects on the City's Insurance Service Organization (ISO) rating if utilities are not upgraded and maintained appropriately. He agreed that there is a need to implement rate increases but stated he would like assurance that monies are not going from the utilities to the General Fund. Mr. Warren explained that money is collected by the utilities strictly for services rendered and that these funds are monitored closely. He indicated that when compared to other cities, low 05/03/99 105 amounts are transferred from the Electric Utility fund to the General Fund. Mr. Warren stressed the importance of ISO ratings, stating that the data is used by insurance companies to determine insurance rates, and should the City's water flow and fire fighting effectiveness be reduced, premiums would increase more than the proposed utility rate increases, to include individual homeowners policies. Mary Atkinson, 1885 Vale Drive, said that she represents senior citizens. She indicated that while utility costs have risen over the years, the income of her peers has not. She opined that water and electricity are metered fairly; however, because of the flat rate charged for Wastewater and Solid Waste, a person with significantly less collection needs is charged the same as a large family with higher needs. Mrs. Atkinson suggested that a method be determined making it more equitable for those currently paying more than services received. Mayor Anderson told Mrs. Atkinson that savings can be achieved under the new rating system by using the optional smaller container. Cathryn Blick, 1238 Magnolia Avenue, related that she is concerned for elderly and disabled persons and those on limited incomes. She pointed out that the increases do not seem high until they are looked at together and added up. Ms. Blick claimed that some area senior citizens did not heat their homes last winter because they could not afford it. Mayor Anderson stated that Council has asked to see all the rate increases concurrently so the total impact can be considered. Peter Scales, 13829 Bear Valley Trail, said he feels Redding is unfriendly to small business. He attributed declining real estate prices to high development fees. Mr. Scales opined that the City should be run as a private business. He had further questions relating to the Electric Utility fund, and Mayor Anderson referred him to Electric Utility Director Feider. Frances Jenkins, 2652 Sharon Street, compared charges on her utility bills from 20 years ago with current higher rates. She indicated that the City is trying to do what is best for its citizens. Mrs. Jenkins reported she did not agree with privatization of utilities because it is easier to work with public employees when there is a problem rather than with a private company. She stressed the importance of maintaining the City's low ISO rating, but she asked Council to keep their pencils sharp when it comes to utility rates. Russell Hunt, 2058 Sonoma Street, claimed that greater efficiencies can be found in the collection of solid waste. He opined that the shortage of funds in the Solid Waste Department is attributable to employee pay, which he indicated is at the top of the pay scale. Mr. Hunt proposed that waste collection should be turned over to the free market in order to allow disposal companies to compete for services. He also suggested bar coding waste containers and charging only for services rendered rather than a flat rate. Mr. Hunt concluded that the City has numerous economic problems, including unemployment and a lack of industrial jobs, and felt that these issues should be Council's priority. Mayor Anderson determined there was no one else present wishing to address this matter and closed the public hearing. In response to Council Member Kight, Mr. Perry stated that any subsidies for self-haul rates are being eliminated over a five-year period, with an immediate increase of 44%, then an increase each year until the cost of service is reached. When asked to respond to the letter submitted on behalf of the Knightens, Mr. Perry explained they propose the City bill tenants as a single family directly rather than property owners paying for dumpsters. He pointed out that apartment dwellers usually do not generate as much waste as a single family, and that it would be impossible to use this method unless the apartments have separate water and electric meters. 05/03/99 106 In response to Council Member Cibula, Mr. Perry explained that property owners have paid for waste collection since 1990, except in the cases of triplexes or smaller buildings where there are separate meters. Council Member Cibula expressed concern that the City may be interfering with existing leases. Mayor Anderson countered that when leases are entered, a consideration should be made that expenses rise and this is the price of doing business. In answer to Council Member Cibula, City Attorney Wingate indicated that the proposed Solid Waste plan will not interfere with existing private contracts. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Kight, that Resolution No. 99-67 be adopted, a Resolution of the City Council of the City of Redding adopting new Solid Waste Utility Rates and charges, effective July 1st of the years 1999 through 2003, as follows: RESIDENTIAL COLLECTIONS - Including waste collection, recyclables, green waste and household hazardous waste facility. ........................... Existing 7/1/99 7/1/00 7/1/01 7/1/02 7/1/03 96 gallon $13.50 $14.30 $15.10 $15.90 $16.40 $16.40 • 64 gallon $13.50 $13.50 $14.10 $14.90 $15.40 $15.40 COMMERCIAL CONTAINERS (DUMPSTERS): - Weekly Collections Year 7/1/99 7/1/00 7/1/01 7/1/02 7/1/03 Average % 0% 5.5% 5.5% 1% .6% Increase FRONT LOAD COMPACTORS: Rates are set at 163% of that for the same size dumpsters due to their heavier weight. DROP BOX COLLECTIONS: Year7/1/99;; r 7/1/00 7/1/01 7/1/02 7/1/03 ...................................................... Average % 5.3% 5.3% 4.3% 1.3% 1.2% Increase LARGE TRASH COMPACTORS: Year 7/1/99 7/1/00 7/1/01. 7/1/02 7/1/03 Average % 5% 5% 5% 4% 4% Increase 05/03/99 107 SELF-HAUL CHARGES AT THE TRANSFER FACILITY: Year Existing 7/1/99 7/1/00 7/1/01 7/1/02 7/1/03 ..................................... .................................... ..................................... Waste $30.44 $44.00 $48.00 $52.00 $56.00 $58.00 Green $ 7.00 $13.20 $14.40 $15.60 $16.80 $17.40 Waste Voting was as follows: Ayes: Council Members - Cibula, Kight, McGeorge, Pohlmeyer, and Anderson Noes: Council Members -None Absent: Council Members -None Abstain: Council Members - None Resolution No. 99-67 is on file in the office of the City Clerk. MOTION: Made by Council Member McGeorge, seconded by Council Member Pohlmeyer, that staff be directed to prepare ordinances incorporating rate adjustments for Water and Wastewater Utilities as follows, for introduction at the May 18, 1999, City Council Meeting. Year 7/1/99 7/1/00 7/1/01 7/1/02 7/1/03 7/1/04 ......................................... Water < $.72 $1.20 $1.42 $1.23 $1.16 $.56 Wastewater $.97 $.57 $.44 $.57 $.44 $.45 .......................................... ......................................... .......................................... ......................................... .......................................... ......................................... .......................................... ......................................... ......................................... The Vote: Unanimous Ayes ADJOURNMENT There being no further business, at the hour of 8:22 p.m., Mayor Anderson declared the meeting adjourned. APPROVED • /, ayor ATTEST .._ �/�.. ...,. City Clerk 05/03/99