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HomeMy WebLinkAboutMinutes - Minutes - Citizens Utility Advisory Commission - Meeting Date: 4/5/2017O�� Citizens Utility Advisory � Commission Oasis Water Campus 7070 W. Northern Avenue April 5,2017,6:00 P.M. I. CALL TO ORDER 6:03 p.m. II. ROLL CALL Present: Vice Chair, Ron Short; Commissioners; Amber Ford, Ruth Faulls, Robert Gehl and Robin Berryhill. Commissioner Berryhill arrived at 6:10 p.m. Absent: Chair, Jonathan Liebman (Excused) III. APPROVAL OF MINUTES OF THE PREVIOUS MEETING Commissioner Ford motioned to approve the March 1, 2017, meeting minutes as written. Commissioner Gehl seconded the motion. The motion carried 4-0. Commissioner Gehl motioned to approve the March 8, 2017, meeting minutes as written. Commissioner Faulls seconded the motion. The motion carried 4-0 (Commissioner Berryhill was not yet present). IV. PUBLIC WORKS RESIDENTIAL SOLID WASTE RATE PROPOSAL OPTIONS AND RECOMMENDATION(S) Michelle Woytenko, Deputy Director, Public Works and Phil Mercier, Business Analyst, presented additional information to the Commission on the Solid Waste Rate Model. Phil Mercier provided a recap of the Solid Waste Rate Model that had been presented at the March 1, 2017 meeting. - Phil followed up on questions from the Commission from the March 1, 2017, meeting on cost saving measures. 1. What would be the cost to outsourcing services to private companies? Findings were as follows with the 3 most recent bids: City of Phoenix's current in-house rate is $7.19/month per household and the best private bid was $9.21/month per household. City of Goodyear's rate for outsourced Solid Waste services is $14.72/per household. Glendale is operating at $8.33/month per household, which is still under most aggressive competitive bid. Phoenix, a much larger city, has the economy of scale and it is unknown what is included or excluded in that bid. Goodyear was just bid out, so it was just awarded and is a 5 -year contract with a CPI adjustment built in. 2. Are there any continuous improvement efforts, not only through operations, but also to the Financial Model? One of these were identified was the cost of the Materials Recycling Material (MRF). Material that was diverted to the landfill was being charged back to Solid Waste. This cost will be attributed to the MRF and will benefit the residents of Solid Waste at $120,000/year. Staff also updated the Capital City of Glendale Water Services Department • 7070 West Northern Avenue • Glendale, AZ 85303 • (623) 930-4100 April 5, 2017 Citizens Utility Advisory Commission Agenda Page 2 expenditure plan to reflect the most up to date information that was presented to the City Council. Internal landfill costs and revenue thresholds were updated to reflect the opening of the north cell. From the previous meeting. Public Works staff was requested to take a look at various options. The following options are considered not feasible at this time: - Personnel resource adjustment, any reductions would have to be tied to service level reductions. - Tonnage reduction. There are many variables outside the span of control of Solid Waste. - Flexible work schedule. Trash trucks going through the neighborhood at 2:00 or 3:00 am or 6:00, 7:00 or 8:00 pm, and weekends — not viable options. - Purchasing methodology (leasing equipment). This will defer the drop in the Solid Waste fund balance to a future date, and will cost more long-term. Any future adjustments would be more significant down the road if equipment was leased. - Container specific pricing. Not feasible, due to the fact that it will not help with current cost of operations. Looking at other valley cities who have done this, the baseline for containers did not change. There would be no significant reduction in cost. 4. Potential opportunities — Recycling efficiencies. Reduction in frequency of trash collection will take time and will require variances. No other city in the valley is doing this. Also, have to take into consideration risk, increase inspections and monitoring would mean more costs. - Sweeper frequency. Currently streets are swept quarterly. If reduced to 2- times/year, cost savings would only be $100,000/year or $ .12/month per household. Once a year would be a savings of $200,000/year or $ .24/month per household. Currently, the City has no investment in capital. Sweepers have been awarded through a Federal grant. Based on potential savings, reducing frequency of street sweeping services is not recommended. Storm water pollution prevention could be impacted, as well as the longevity of the street infrastructure. - Route and tonnage swapping with surrounding municipalities. This is currently done now. City of Glendale does have a reciprocal agreement in place. In terms of cost savings, this would be in fuel and potential densification of routes. Not able to set anything up in the short-term. - Residents purchasing for their own bins. Residents could save $ .28/month. Staff would not recommend residents taking on the $70/bin purchase responsibility. Sharing recycling bins, there may be issues with ownership, storage, and quality control. This will not reduce cost of services, the trash trucks still need to drive down the street. - Bulk Trash collection reduction. Currently serviced once a month. This is one of the highest rated services by Glendale resident surveys. Reduction to bi-monthly collection would result in a savings of $300,000/annually or $ .45/month for residents. Quarterly collection will result in $450,000/year in savings or $ .68/month per resident. Capital savings would be an estimated $ .22/month. - Incorporate "On Call" bulk trash collection. This will pull costs out of monthly resident fee estimated at $3.00/month or $36.00/year. Looking at City of Mesa's model, they provide on-call bulk trash service at $21.83/call or $250/on-call charges a year. - Bulk trash volume -limits. Enforcement of volume -limits will require additional resources. April 5, 2017 Citizens Utility Advisory Commission Agenda Page 3 Public Works staff provided two recommendations and no reduction to service. ♦ 1St Recommendation: increase rate $2.75/month on November 1, 2017, taking rate from $16.30 to $19.05. On January 1, 2019, increase rate an additional $2.75 to sustain fund balance, taking rate to $21.80. ♦ 2"d Recommendation: $4.20/month on November 1, 2017 taking rate to $20.50 and on January 1, 2019, increase rate by $1.00/month per resident. taking rate to $21.50. Other valley city's rates were provided and the City of Glendale's rate is in- line and competitive with other valley cities. Services do vary throughout the valley cities. Public Engagement Proposal — Staff will present plan for Public Engagement at the May 10, 2017, CUAC Meeting. The Council Workshop presentation will be June 6, 2017. Public engagement meetings will be held during the month of July and staff will present findings again at August 15, 2017 Council Workshop. Rate adjustment approval will go to Council September 26, 2017. Rate adjustment will be effective, November 1, 2017. Action: Commissioner Faulls made a motion to present both Rate Adjustment Recommendations, 1 and 2, to the City Council at their Workshop Meeting, June 6, 2017. The motion was seconded by Commissioner Berryhill. The motion carried 5-0. V. CALL TO THE AUDIENCE An opportunity was provided to members of the public to address the Citizens Utility Advisory Commission. `None' . VI. FUTURE AGENDA ITEMS Consensus by board to request a 2' meeting on May 10, 2017, due to the volume of information being shared. VII. COMMISSIONER COMMENTS None. VIII. NEXT MEETING DATE The next meeting will be May 3, 2017 at 6:00 pm. IX. ADJOURNMENT Motion to adjourn was made by Commissioner Berryhill and seconded by Commissioner Faulls. Motion approved 5-0. The meeting adjourned at 7:17. Recording Secretary: Angela B. Holguin, Supervisor Administrative Support pm�� a, e kaet v<%