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HomeMy WebLinkAboutMinutes - Minutes - Citizens Utility Advisory Commission - Meeting Date: 11/1/2017 FINAL MINUTES. . CITIZENS UTILITY ADVISORY COMMISSION OASIS WATER CAMPUS 7070.NORTHERN AVE. GLENDALE, ARIZONA,85303 NOVEMBER.1, 2017 6:00 P.M. 1: CALL TO ORDER Chair Jonathan Liebman called the meeting to order at 6:05 p.m. 2 ROLL CALL Present: Chair Jonathan Liebman Commissioner Robin Berryhill Commissioner Amber Ford Commissioner.Robert Gehl: . Commissioner.Stephen DeAngelo AbsentVice Chair Ronald Short 3. CITIZEN COMMENTS N6ne: . 4: APPROVAL OF THE MINUTES Motion,and second, to approve the October 4, 2017 meeting minutes as written : Motion carried 5-:0: 5. DIRECTOR'S REPORT Ms Michelle Woytenko, Director of Field Operations,. provided the Director's Report,which included the following topics: 1. The Government Services Committee will meet on November 7, 2017, and will hopefully name.a replacement for Commissioner Ruth,Faulls. Councilmember Turner would nominate the replacement: The Commission . . willbe apprised of any issues with quorum for December. 2: The proposed utility rate increase went to a vote at the Council meeting on October 24th, at which Chair Liebman and Vice Chair Short were present. Ms. Woytenko reported that the rate increase was passed with a vote of 5 to 2. Chair Liebman added that Councilmember Aldama and Councilmember Clark were the dissenting votes. Chair Liebman stated that Councilmember Aldama relayed that he took a poll in his neighborhood and the consensus was that the residents did not support the increase. Chair Liebman noted that Councilmember Clark felt that not enough sensitivity studies were done and she had concern regarding the tiers of service. Chair Liebman stated that the other Councilmembers were supportive as there has not been an increase in approximately 8 to 10 years. Chair Liebman added that the increase only goes into effect for two years and then another rate review will be conducted. Ms. Woytenko commented that the Commission had asked for regular updates on the rates and financials, in order to avoid another challenging financial situation in the future. Ms. Woytenko asked how often the Commission would like an update on the rate financials. Chair Liebman replied that in business, quarterly financials are a general norm and suggested a quarterly update. Ms. Woytenko noted that Council requested quarterly updates as well and therefore, she will provide the Commission with the update prior to updating the Council. Ms. Woytenko confirmed that the financials are on a July 1 to June 30 fiscal year calendar. Chair Liebman inquired if staff would be able to have the numbers ready on the first Wednesday after the quarter end. Ms. Woytenko stated that in December, staff will report on first quarter results, so there is a lag time. Commissioner DeAngelo inquired if this was additional work for staff. Ms. Woytenko replied that staff would have to prepare the numbers presentation earlier, which is a good exercise anyway. Ms. Woytenko commented that Council will be provided with a high level update, however, additional details could be provided to the Commission as requested. Ms. Woytenko commented that in the future, the Commission will be provided with the update prior to the Council presentation. Commissioner Ford asked for clarification of the update. Chair Liebman explained that the report would be a comparison of the Option 3 actual numbers versus the pro-forma estimates. Ms. Woytenko confirmed that the new rates go into effect on January 1, 2018. Commissioner DeAngelo wondered if the quarterly updates would make the dissenting Councilmembers more comfortable with the rate increase. Chair Liebman stated that Councilmember Tolmachoff requested the updates as part of her vote in support of the increase. Ms. Woytenko noted that it has been 8 to 10 years since the last rate adjustment and staff will be vetting the numbers closely on an ongoing basis. 6. BULK TRASH SCHEDULE AND ENFORCEMENT Mr. Torrance McDonald, Superintendent Solid Waste Management, gave a presentation on the Bulk Trash Schedule and Enforcement, which include the following: •Concerns/Proposed Solutions • Bulk trash delayed service during the holidays • Reorganize collection process/scheduling • Placement setout times (early/late) • Reassign Inspector Assignments • Increase from 1 to 5 inspectors • Material placement location (on property) • Enforce/evaluate placement of material • Illegal dumping •Alley controlled access/increased alley monitoring • Education/Enforcement • Establish violation re-check timelines • Increase attendance at City-sponsored meetings and events • Education material packets (new residents/pre-enforcement) •Current Bulk Trash Collection Schedule • Map and Calendar Displayed • Proposed Bulk Trash Collection Schedule for 2018 • Map and Calendar Displayed • Easier to read —color safe •Calendar view for sections and off weeks • Off weeks — on the fifth week of each month, after Memorial Day, Thanksgiving, and Christmas • How Will People Know? •Glendale Star •Channel 11 • Monthly Utility Bill •www.glendaleaz.com/solidwaste • Hold line for customer service calls • New resident welcoming packet • Direct mail with refrigerator magnet •Continuous education • Education in Action • Door Hanger • Magnet • Informational materials • Business card for questions •Weekly inspection, audits, and education • Follow-up visits •City Events • Proposed Enforcement •Ability to enforce violation collections for verified early and late setout based on service collection type: • Resident removal within 24 hours •$45 for Easy to handle piles •$99 for Hard to handle pile •Citywide grace period prior to enforcement actions to be implemented • Enforcement actions to be on an individual basis based on account history Mr. McDonald stated that the new collection map/schedule will be published in the paper, on the City website, and on the refrigerator magnet. Mr. McDonald displayed the refrigerator magnet and the bulk trash placement illustration with guidelines. Mr. McDonald asked for Commissioner feedback and recommendations. Chair Liebman asked for clarification regarding illegal dumping in the alleys. Mr. McDonald stated that there is currently one inspector who drives through the alleys and having four more inspectors will help staff stay on top of the issue better. Mr. McDonald stated that dumping in the alleys happens a lot and causes accidents and damage. Ms. Woytenko noted that this issue was raised by Councilmember Aldama about a year ago due to an increase in illegal dumping in his district. Material was being dumped in the alleys which was not only unsightly but unsanitary as well. Ms. Woytenko reported that gates were installed on approximately 7 alley entryways, with City staff and residents having the keys for access. Ms. Woytenko stated that this resolution has helped decrease the dumping; however, there is still illegal dumping on vacant lots and at other alleys in the City. Chair Liebman inquired about the reason for the change in placement day from Thursday to Saturday. Mr. McDonald explained that residents have commented that the neighborhoods look unsightly for one week of each month and,the change will shorten the window that the bulk trash is outside. This will improve neighborhood aesthetics. Chair Liebman noted that this is a behavioral change and needs to be included in educational material. Chair Liebman suggested that Councilmembers include this information multiple times in their emails to residents. Ms. Woytenko agreed and added that this information is also being given to HOA's. Chair Liebman inquired about the grace period for the penalties imposed. Mr. McDonald stated that there would be a 6-month grace period, however, it can depend on how many violations there are within the 6-month grace period and the resident's history. Ms. Woytenko stated that there is some flexibility as long as the behavior is changing. Chair Liebman suggested a very objective method in which penalties are addressed in order to avoid grey areas and arguments. Commissioner Berryhill inquired about the keys for the alley gates and how APS can access the alleys. Ms. Woytenko explained the lock system and stated that APS and other companies that need alley access have their own locks and keys. Ms. Woytenko noted that the process is working well so far. Alleys are not closed off without the request by the residents. Commissioner Berryhill expressed concern that the schedule change could be confusing for residents. Ms. Woytenko explained the reason behind the changes, which stemmed from the Yucca district generally having bulk trash outside during the holiday weeks. Commissioner Berryhill stated that it will take the residents some time to get used to the change. Ms. Woytenko commented that maybe instead of calling the Sections by number (1, 2, 3, 4), to call them by their district name to alleviate any confusion with the pick-up week. Commissioner Gehl inquired about the term "color safe". Mr. McDonald explained that some people are color-blind or cannot distinguish certain colors. Commissioner Gehl asked if unanimous consent would be needed by the affected residents to gate or close down an alley. Ms. Woytenko stated that staff is reporting back to council on the status to date for the gated alleys. Ms. Woytenko commented that staff can report in more detail to the Commission on this issue in the future. Commissioner Gehl asked if an alley could be closed for a reason not related to illegal dumping. Ms. Woytenko replied that this would be a police concern, such as people living in an alley, drug activity, or petty crimes, and would be considered holistically for the benefit of the residents. Commissioner Gehl inquired if this was a Public Works responsibility and Ms. Woytenko replied in the positive. Commissioner DeAngelo felt that the roll-out is a lot of information for the average resident and that there should be more education regarding the penalties. Mr. McDonald suggested using illustrative diagrams for the most common placement infractions. Commissioner DeAngelo stated that he is color-blind and can still read both sets of colors. Ms. Woytenko replied that there are others who were unable to distinguish the original colors. Commissioner Ford suggested organizing bulk trash descriptions by category. Commissioner Ford wondered about the cost for personalizing the bulk trash schedule by area. Mr. McDonald replied that there would be no cost increase because there is already a mailing sent out, it will just be tailored to the resident. Commissioner Ford agreed that there should be education and consistency with the penalty violations. Chair Liebman asked if Council has to vote on this change. Ms. Woytenko replied that Council does not have to vote on the changes, but staff would like a recommendation from the Commission, and this will be sent to Council in a memo. Commissioner Berryhill felt that the proposed schedule could be confusing, although she understood the reason for the change. Commissioner Berryhill agreed with changing from the numbers to district names would be helpful. Commissioner Berryhill wondered if changing from placement on Thursday to Saturday would save the City money. Mr. McDonald replied in the positive, noting that it saves on two days of staff enforcement. Commissioner Berryhill announced that she would support the placement date from Thursday to Saturday. Chair Liebman stressed more vetting of the enforcement strategy and if there is a different way to re-map the areas based on the feedback provided. Commissioner DeAngelo stated that clarification of penalties is a major point and agreed with Commissioner Ford's suggestion regarding categorization of bulk trash. Ms. Woytenko appreciated all comments and recapped that staff will re-look at the proposed zone names, proposed enforcement, and placement illustrations. Ms. Woytenko suggested looking at July 1, 2018 implementation versus January 1, 2018. Chair Liebman wondered if it could be February 1, 2018. Mr. McDonald noted that staff needs more than a 30-day window for printed materials. Ms. Woytenko replied that March 1, 2018 could be possible or partial roll-out with the change from Thursday to Saturday initially. Chair Liebman wondered if a partial roll-out was prudent. Commissioner DeAngelo wondered if the savings to the Saturday date would be beneficial, even if partial. Ms. Woytenko commented that it might be prudent to make all changes at one time. Commissioner Berryhill agreed. Commissioner Gehl asked about the worse-case scenario for waiting on roll-out. Ms. Woytenko commented that staff is trying to help solve the problem for the Yucca District and not make the same problem elsewhere. Commissioner Berryhill inquired as to the timeframe needed for approval. Ms. Woytenko explained process and commented that the process does not need to be rushed. Commissioner Berryhill suggested looking at roll-out July 1 st however informing the public earlier about the proposed penalties, which would give the public time to comment on the fees. Ms. Woytenko replied that currently there is only a $99.00 fee and the $45.00 fee makes it better for the residents if they only have a small amount they would like the city to pick up. Chair Liebman suggested approving all except for the penalty fees. Commissioner DeAngelo inquired if the fees would remain on the homeowner's record and Mr. McDonald replied in the positive. Commissioner Berryhill inquired if a resident could schedule a $99.00 pickup. Mr. McDonald replied in the positive; however, it would not be an enforcement action. Commissioner Berryhill asked if this could be included in the resident education. Chair Liebman announced that the Commission has reached consensus to move forward with revisions to the Bulk Trash Collection Schedules, except the penalty fees structure for which additional information regarding the proposed enforcement revisions was requested. 7. LANDFILL BACKGROUND AND RATE MODEL Ms. Woytenko stated that this evening, the Commission would hear an overview of the Landfill. Ms. Woytenko noted that over the next five years, there may be an issue with rates and staff would like this to be considered by the Commission and Council as early as possible. Mr. Chris Young, Landfill Engineer, gave a presentation which included the following: • Landfill Overview •The landfill is composed of 6 operations/activities that encompass the total costs and/or revenue streams • Landfill •Gas Management System • Materials Recovery Facility • Recycling •Solid Waste Administration • Household Hazardous Waste • Landfill Map •Aerial views were displayed • Landfill Operations •A municipal solid waste landfill is a discreet area of land that received non-hazardous waste. Daily operations include compacting and covering waste daily and ensuring compliance with all regulations. • Primary Expense Drivers: • Operational costs (salaries, equipment maintenance) • Capital expenses (vehicles, facilities, information systems) •Annual ADEQ fees •Gas Management System •Activity Summary •The system is designed to capture and convert methane gas into energy, which is given off from the decomposing solid waste within the landfill. We have maintained a partnership with APS since 2010. •Cost Drivers • Operational costs (system maintenance) • Capital expenses • Materials Recovery Facility (MRF) •The Glendale MRF receives recyclable materials from households and businesses. It is a recyclables processing center designed to sort and process recycling materials into marketable goods. • Cost Drivers •Operational costs (salaries, hourly labor, equipment maintenance) •Capital expenses (equipment upgrades, vehicles) • Recycling • Recycling inspectors conduct inspections on recycling containers to ensure material compliance in order to better improve material quality going to the MRF. The recycling group also conducts community education efforts. • Cost Drivers •Operational costs (salaries, containers) •Capital expenses (vehicles) •Solid Waste Administration •Support staff provides customer services through phone calls (2,000 monthly), handles billing, and reporting support as well. Supervisory - staff also included and they provide management and analytical support for all departments. Solid Waste Administration is funded equally by the landfill and solid waste collections. •Cost Drivers • Operational costs (salaries) • Capital expenses (vehicles) Mr. Young announced that the Landfill is operating at a loss of approximately $300,000 a year. • Revenue Rates • Landfill Rates •Gates rates • Internal charges • IGA (Inter-Governmental Agreement) Rates • Municipality Specific (Avondale, Peoria) •Glendale Resident Rates • Hard to Handle waste •Tires • Freon • MRF Rates • Market determined per commodity (aluminum, plastics, paper, cardboard) Mr. Phil Mercier, Business Analyst, gave a presentation which included the following: • Landfill Model Overview •The purpose of the model is to use historical trends and operational knowledge and plans to build a ten-year model of revenue and expenses based on current available knowledge. •With the model in place, the management team can identify potential financial obstacles and begin advanced planning for revenue increases and/or expense reductions. •The model is built by department and rolls up to a total fund summary. •Within each department are all of the accounts that are available within the revenue and expense activity reports. • _The model is built to show revenue at the top, which can then be expanded to show the details of the calculations. • Below the revenue are expenses by department with expenses divided between direct costs of services and what is more traditionally considered OG&A costs. • Each department also has their capital expenses in their individual expense summary. • Landfill Rate Model •A detailed spreadsheet was provided for the next 10 fiscal years •Commercial customers, IGA customers, and residential rates reviewed. • In approximately 6 years, the landfill will be filled up so in 2024, will be at capacity. Need to make sure there is necessary revenue on hand for expansion when needed. • Required fund balance: Need 15% of prior year revenue • In FY2023, the required fund balance will dip below necessary. • FY2021: Placeholder for $10 million bond •Ms. Woytenko explained that the placeholder is for the potential transfer of funds to offset a prior transfer in approximately 2011. Ms. Woytenko noted that this is a very high level overview, including the philosophy of rates. Ms. Woytenko commented that the overview does show that there are financial challenges in the upcoming years. Ms. Woytenko would like to keep the solid waste charges as low as possible, which may be able to be done by increasing the IGA/gate rates. Ms. Woytenko noted that more information is required from the Finance Department regarding options before a more detailed presentation can be given to the Commission. Ms. Woytenko asked the Commission for consensus on bringing the issue back to the Commission in the future. Chair Liebman wondered about forecasts on how fast the landfill is filled up by the IGA's. Mr. Young replied that the IGA's do fill up the landfill, but also provide revenues as well and without the IGA's the cost to Glendale residents would be increased. There is a fine balance to maintain. Mr. Young stated that landfill capacity is constantly being tracked to stay ahead of planning. Chair Liebman commented on the$10 million bond in FY2021 and Ms. Woytenko noted that this would be for expansion. Chair Liebman inquired about the 15% fund balance requirement and Ms. Woytenko replied that this was set by council as recommended by the Finance Department based on best practices. Chair Liebman expressed concern about the landfill filling up too fast. Ms. Woytenko agreed and stated that modeling will be discussed in greater detail in a future meeting. Ms. Woytenko explained that at today's rate, there is fifty years left at the north cell. Ms. Woytenko stated that there is the north cell and the south cell. Ms. Woytenko commented that there are plans for other expansion areas and that Glendale is set up very well for the future compared to other valley cities. Commissioner Gehl inquired as to how much usage is City resident revenue versus IGA. Mr. Mercier stated that all of the IGA customers make up about 35-40%. Ms. Woytenko noted that this includes some large contract customers as well. Mr. Mercier estimated that the City of Peoria is approximately half of this percentage. Commissioner DeAngelo wondered if there were other options for the IGA customers if they did not want to pay a rate increase from Glendale. Mr. Young stated that the current IGA customers have Waste Management Surprise as an option, but that would mean an increase in transportation costs for them. Ms. Woytenko noted that the City competes against Waste Management and Republic Services, private sector waste companies, and if so desired the landfill could be closed and City could contract with one of these companies for waste services. However, staff would like the Commission input on framing those decisions. Consensus was to continue with Landfill rate review. 8. COMMISSIONER COMMENTS AND SUGGESTIONS Chair Liebman would like information regarding a legal proceeding regarding the City of Glendale and recyclables, which he read about in the paper a few months ago. Ms. Woytenko explained that discussions are currently ongoing in court and a decision is expected on November 20th and the issue will be discussed in December. Commissioner Ford requested a more legible copy of presentation materials regarding the Landfill. Commissioner Berryhill thanked staff for the presentation. 9. FUTURE AGENDA ITEMS Suggestions for future agenda items include the following: • December: Salt River Irrigation Contract •January: Planning for 2018 Strategy and Agendas Topics 10. NEXT MEETING The next meeting regular meeting of the Citizens Utility Advisory Commission will be held on December 6, 2017 at 6:00 p.m. at the Oasis Water Campus, 7070 W. Northern Avenue, Glendale, Arizona, 85303. 11. ADJOURNMENT Motion by Commissioner Ford, second by Commissioner Berryhill, to adjourn the meeting at 8:23 p.m. Motion carried 5 - 0. The Citizens Utility Advisory Commission meeting minutes of November 1, 2017 were approved on the 6th day of December, 2017. Denise Kazmierczak Recording Secretary