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HomeMy WebLinkAbout03/31/2008 B A K E R S F I E L D Z__0 4L Ken Weir, Chair John W. Stinson, Assistant City Manager Sue Benham Rick Kirkwood, Management Assistant Irma Carson AGENDA SUMMARY REPORT REGULAR MEETING OF THE BUDGET AND FINANCE COMMITTEE Monday, March 31, 2008 — 12:00 p.m. City Manager's Conference Room —Suite 201 City Hall, 1501 Truxtun Avenue, Bakersfield, CA The meeting was called to order at 12:03:52 PM 1. ROLL CALL Committee members present: Councilmember Ken Weir, Chair Councilmember Irma Carson Councilmember Sue Benham Staff present: City Manager, Alan Tandy Assistant City Manager, John Stinson Management Assistant, Rick Kirkwood Administrative Analyst, Steven Teglia City Attorney, Virginia Gennaro Deputy City Attorney, Josh Rudnick Finance Director, Nelson Smith Public Works Director, Raul Rojas Assistant Public Works Director, Brad Underwood Solid Waste Director, Kevin Barnes Solid Waste Superintendent, Sal Moretti Solid Waste Business Manager, Luda Fishman Others present: Jim Baldwin, BARC Roland Burkert, Roland Consulting William Winchester, Berg Mill Supply Bernard LeBeau, Attorney for Kern Refuse John McNamara and George Eowan, Env. Strategy Consultants Larry Moxley, Kern Refuse Vernon Varner, Jacob Penero, Dan Penero and Greg Sanders, ----- Varner Bros, Inc. John Price and Jay Price, Price Disposal Bruce Keown, Superior Sanitation Daphne Harley and Nancy Ewert, K.C. Waste Management Dept Richard Caglia, Jim Verros and Ray Medley, CARTS John Fermanian, Smurfit-Stone Recycling John Richardson and Dave Baldwin, Community Recycling Various members of the media AGENDA SUMMARY REPORT Page 2 BUDGET AND FINANCE COMMITTEE MEETING Monday, March 31, 2008 2. ADOPT FEBRUARY 25, 2008 AGENDA SUMMARY REPORT Adopted as submitted 3. PUBLIC STATEMENTS None 4. NEW BUSINESS Discussion regarding Recycling Issues —Tandy/ Roias City Manager Tandy reported that this item is on the agenda based on a referral from Councilmember Scrivner. Two written proposals have been received and will be presented. City staff will also present their comments. The Committee will be asked for direction to staff on the proposals and any alternatives that the Committee may wish to be studied. Staff is not prepared at this time to discuss issues such as rate impacts, landfill fee impacts, legal issues, costs, measurements of impact on air quality, or recycling. Staff expects that there will be additional Committee consideration before a recommendation is forwarded to the full City Council. Public Works Director Rojas stated that future State mandates are still unknown. The City is meeting the existing 50% mandate. Staff believes the matter should be investigated and clarified so that the City Council has all the available information on which to base a decision. MRC and BARC submitted proposals in writing. Community Recycling, Cedar Avenue Recycling and Smurfit Corporation have expressed interest in doing business with the City on recycling projects, whether they are recovery or collection projects. There is a vendors list of interested firms, and all have been kept apprised of the City's progress towards recycling programs. Bernard LeBeau, Attorney for Kern Refuse, addressed the issue of whether the proposal has to be submitted for competitive bidding. Larry Moxley with Kern Refuse presented the MRC proposal as a slide show. He introduced George Eowan, the head consultant and former CEO of Integrated Waste Management Board, John McNamara, with Environmental Strategies, and William Winchester with Berg Mill, who is involved in marketing. The proposal covered reduced air emissions, diversion estimates, capital and operating costs, fee projections and job creation estimates. The projected construction cost is $50 million, with an annual operating cost of $40 million over a period of 25 years. The proposed rate increase for residential customers would be $2 per month, according to Mr. Moxley. Jim Baldwin, President of BARC, presented their proposal which would be implemented at no additional cost to the consumer. Richard Caglia, with CARTS from Fresno, stated that they recently introduced the company and services to the City, and is very interested in potentially entering the market. John Richardson, with Community Recycling Resource Recovery, stated that they also would like the opportunity to be able to provide services to the city. They have a greenwaste composting facility in Kern County, and also operate a transfer station and MRF in conjunction with C&D Recovery Greenwaste and Food Waste Processing. SACouncil Committees\2008\08 Budget and Finance\March\March 31 ASR.doc AGENDA SUMMARY REPORT Page 3 BUDGET AND FINANCE COMMITTEE MEETING Monday, March 31, 2008 City Manager Tandy gave an overview of the written materials that had been distributed. Both the City and County attempted to obtain grant funds for a full transfer station at the Mt. Vernon site through the San Joaquin Valley Air Pollution Control District. The funds are currently tied up in litigation for an unknown period of time and will not be released until the litigation has been resolved. Staff suggests various ways to reduce air pollution and/or increase recycling efforts. These include a full transfer station, detachable unit or direct transfer station, convenience stations for self haulers, dual collection (which is a truck split down the center and capable of holding greenwaste on one side and recycling materials on the other), apartment programs, blue cart expansion, marketing improvements, and expansion of existing programs. All refuse trucks are being converted to clean air fuel, which is a State law to be complied with by 2010. Staff is looking for direction from the Committee and City Council on which of those options they would like to see further analysis. Committee member Benham asked if the City should wait for State mandates to make any changes before implement additional recycling. Public Works Director Rojas recommended making changes in small increments. Ms. Benham stated that she has always been a proponent of recycling and believes that the City should take more of a lead on the issue. She wants recycling to be available and encouraged for commercial and multi-family users. Committee member Carson stated that it was her belief that at the last Joint meeting of the City and County, building a complex that would be a one-stop shop for both agencies was discussed. It was to be a comprehensive approach to waste disposal and recycling, and a cost-savings venture for all City and County residents. She said her concern is for the overall community and how it will impact ratepayers in the City. City Manager Tandy confirmed that item was discussed at the joint meeting and involved a transfer station at the Mt. Vernon site. This, however, was dependent on the $20 million San Joaquin Valley Air Pollution Control Grant, and that is now unlikely to be awarded. Mr. Tandy stated that staff has not done an analysis on any of the proposals received or presented. Staff would require consulting assistance to accomplish this. Committee Chair Weir reported that the Committee evaluated a blue can proposal last October and it was then forwarded to the full Council for consideration. He asked at that time that the Grant not only be used for a mandatory blue cart program, but also a more comprehensive plan. He recommended moving forward on a program that will benefit the community rather than waiting for new State mandates. He prefers a long-range plan with long-term goals over an incremental approach for a solid waste reduction recycling program. He suggested that staff meet with interested parties and provide monthly updates to the Committee. Public Works Director Rojas asked for a recommendation or motion for staff to hire a consultant to help with that task. Committee member Benham made the motion. City Manager Tandy asked if the consultant would evaluate only City data, or if the City would be paying for a comprehensive Metropolitan Bakersfield analysis. Daphne Harley with Kern County Waste Management stated that the issue is on the agenda for the April 8, 2008 meeting of the Board of Supervisors, and she would ask the Board to move forward for the County's portion. There would then be a clear indication of the County's direction before it goes to Council for approval: The estimated time to prepare the analysis is 12 — 18 months. Committee member Carson received confirmation that the consultant would prepare a comprehensive solid waste plan. SACouncil Committees\2008\08 Budget and Finance\March\March 31 ASR.doc AGENDA SUMMARY REPORT Page 4 BUDGET AND FINANCE COMMITTEE MEETING Monday, March 31, 2008 Mr. Moxley stated that the Board of Supervisors and City Council asked the haulers to provide an analysis, which they did. He asked that it now be sent to the City Council for consideration. City Manager Tandy noted that individual members of the Board of Supervisors or City Council may have stated their desire to see a proposal; however, at no time did either agency vote on the issue. The matter would require a bidding process and procedures as a legal requirement, which prohibits Council consideration of only the MRC proposal. Committee member Benham confirmed that any consultant hired jointly by the City and County would, as part of their study, analyze the MRC proposal and all others that have been submitted. Committee Chair Weir asked for clarification on what the consultant would be expected to do. City Manager Tandy stated that staff is not in a position to validate either the capital or operating cost projections of the MRC proposal, and would need consulting help to understand what the end user costs will have to be. While the $50 million construction cost would be advanced by the haulers, the funds, in the end, be paid by the taxpayers. Since the term of the proposal is for 25 years, the estimated total cost to consumers would be $1 billion. The consultant would further analyze economic impacts and benefits in terms of air pollution reductions. City Attorney Gennaro stated that the motion on the floor is for staff to retain a consultant to study a long-term comprehensive refuse reduction program for the metropolitan area and include in that analysis all proposals that have been submitted to the city. The motion passed by a vote of 2-1, Committee members Benham and Carson in favor and Committee Chair Weir opposed. 5. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting adjourned at 2:12:49 PM SACouncil Committees\2008\08 Budget and Finance\March\March 31 ASR.doc