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Home My WebLink About12/02/2002 B A K E R S F I E L D ~ {;0 ~v~'C.~-~ Mike Maggard, Chair Alan Tandy City Manager Harold Hanson Staff: John W. Stinson Mark Salvaggio AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE SPECIAL MEETING Monday, December 2, 2002 City Manager's Conference Room - City Hall 1501 Truxtun Avenue, Bakersfield, CA 1. ROLL CALL Called to Order at 4:05 p.m. Present: Councilmembers Mike Maggard, Chair; Harold Hanson and Mark SalYaggio 2. ADOPT NOVEMBER 14, 2002, AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS 5. NEW BUSINESS A. Staff report and Committee recommendation regarding propOsed increase in Kern County Refuse Fees Kern County Waste Management Director Daphne Washington provided a computer presentation regarding the proposed solid waste system fee increases to be implemented on July 1,2003. The presentation included an overview of revenue and expenses to operate the landfill, cost-cutting measures implemented and justification for the increases. Ms. Washington explained the County Waste Management Department has recommended to the Board of Supervisors increasing the following County fees: the land use fee charged to residents (single home) from $57.00 per year to $66.00 per AGENDA SUMMARY REPel' BUDGET AND FINANCE COMMITTEE MEETING Monday, December 2, 2002 Page - 2 - year and the gate fee charged to businesses including the City from $29.00 per ton to $36.00 per ton. The recommendation included lowering vendor bin disposal fees from $2.00 per cubic yard to $1.90 per cubic yard. The proposed plan would increase rates beginning in 2003-04. The fee adjustments are proposed to increase County landfill revenue by 15%. A public hearing before the Kern County Board of Supervisors is set for December 10, 2002, with adoption of the increases by the Board. Attached is a copy of a letter dated December 10, 2002, to the Board of Supervisors from the Kern County Waste Management Department regarding the recommendation for increases. The residential land use and gate fee rate increases have been discussed for sometime at the Solid Waste Management Advisory Committee and Ad Hoc Committee; however, the rate increases discussed were less than those being proposed today; the land use fee of $57 was to be increased to $63 and the gate fee from $29 per ton to $34 per ton. In late September the Regional Water Quality Control Board notified the County that they intend to require a double composite liner at the Shafter-Wasco landfill and the County then raised the proposed increase on fees higher because of the chance this requirement may be extended to other County waste facilities. Public Works Director Raul Rojas expressed the City understands regulatory requirements and mandates requiring the need for an increase. However, generally you do not give a 24% increase and a 15.8% increase to the consumer all in one year. Rate increases should be phased-in over several years. Originally, when countywide systems were initiated, the City picked up all trash cans twice a week including green waste, brush, and bulky items and everything was included, which was about a two-ton average buried in the landfill. However, currently the City diverts green waste and brush at about 3,4 of a ton per year, which is recycled at City expense. One-page diagram attached. City staff expressed concern because the City directly bills the commercial bin customers and part of the commercial compactors, roll offs and other truck customers who are also proposed to get a 24% increase. This will generate many calls and complaints to the City, when it is the County that is raising the rate. A one-page breakdown of the increases to customers is attached, which shows the increases proposed for Bakersfield will total $1.6 million. The City Manager outlined the points on which City staff fundamentally does not concur with County staff: There is insufficient time for the City Council to review the Budget and Finance Committee's recommendations as the City Council does not meet until December 11th. There is a hearing scheduled for the December 10th Board of AGENDA SUMMARY REP,O"~T BUDGET AND FINANCE COMMITTEE MEETING Monday, December 2, 2002 Page - 3 - Supervisors meeting, but the Board is also planning to adopt the fees at the same meeting. · The percentage increase of 15.8% for residential customers is too severe and should be phased in over five years. · It is inequitable to charge all groups the same when one group has a green waste program that diverts a large percentage of its green waste and others do not. · The adjustment in the ton and volume rate that causes the City and our commercial customers to have a 24% rate increase and causes other commercial customers in the County to have a 5% rate decrease may not be totally inequitable, but City staff believe it is an extremely severe adjustment to make and should be phased-in over five years, which should still provide funds for the County to meet their debt service on the landfill. The 24% increase in the per ton charge will seriously impact the City's budget. · Using mixed revenues to pay for the County's cost at Mt. Vernon is causing Bakersfield residents to double pay. · Using revenue from the County's landfill to pay the County's cost of closing the old landfill is in effect having Bakersfield residents pay part of the County residents' $4 million share of the cost. · The City through our share of blended costs has been paying the County's exclusive costs of administration of haulers, illegal dumping, etc. · The City has been very generous in letting the County pay a break-even rate to utilize our sewer plant capacity (for example CSA 71) and now the County is asking the City to pay many expenses on top of a pure capacity issue on the use of the County landfill. Committee Member Mark Salvaggio explained he voted on the County's behalf and it is his understanding the Regional Water Quality Control Board has reduced some of the requirements. So the additional $2 increases on the landfill use and gate fee the County has initiated due to the Regional Water Quality Control Board action should be reduced. It was discussed that only two cities, Bakersfield and Taft are getting increases and the other seven cities will be getting a reduction, so the other cities in Kern County may not share Bakersfield's concerns. Also the green waste issue may not affect all the other cities. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Monday, December 2, 2002 Page - 4 - Larry Pennell, City Manager of Wasco spoke. He will take the information and share it with Jason Caudle, City Manager of Tehachapi, President of Kern County City Manager's Association, who had to leave the meeting early. As the City Council will not meet until the day after the Board of Supervisors December 10th meeting, Committee Member Hanson made a motion to send a letter to the Board of Supervisors from the Budget and Finance Committee outlining and explaining the City's concerns, and also put an item on the December 11th City Council agenda for discussion. The Committee unanimously approved. 6. ADJOURNMENT The meeting adjourned at 5:55 p.m. Attendance: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City Manager John W. Stinson; Assistant to the City Manager Darnell Haynes; Public Works Director Raul Rojas; Finance Director Gregory Klimko; Solid Waste Director Kevin Barnes; and Solid Waste Superintendent Sal Moretti Jason Caudle, City Manager of Tehachapi; Larry Pennell, City Manager, City of Wasco; Roland Burkert, Waste Management Consultant for Kern County; and Daphne Washington, Director of Waste Management, Kern County cc: Honorable Mayor and City Council S:\Darnell\02Budget and Finance\02dec02summary