HomeMy Public PortalAbout2002 SPEC FEB 26 Unofficial Until Approved
By city council
MINUTES
CARSON CITY COUNCIL
SPECIAL MEETING
FEBRUARY 26, 2002
6:00 P.M.
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AGENDA POSTED: FEBRUARY 21, 2002
CALL TO ORDER:The meeting was called to order at 6:21 P.M. by Mayor Sweeney in the Council
Chambers, Carson City Hall, located at 701 E. Carson Street, Carson, California
90745.
ROLL CALL: City Clerk Kawagoe called the roll:
Present: Council Members: Sweeney, Frank, Calas, Dear, and Ontal
Absent: Council Members: None
Also Present: City Manager Groomes, Assistant City Manager Penn, City Attorney
Thorson, Assistant City Attorney Rudell, City Clerk Kawagoe, City
Treasurer Avilla, and staff: R. Cruz, Gallant, Boyce, Cagaanan,
Fe'esago, Galling, Mann, and Higaki
APPROVAL OF AGENDA:
The Agenda was Approved as Submitted on motion of Ontal, seconded by Frank and carried by unanimous
consent.
NEW BUSINESS DISCUSSION (Items 1 -2)
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ITEM NO. (1) APPROVAL OF SOLID WASTE FRANCHISE AGREEMENT FOR
RESIDENTIAL REFUSE COLLECTION AND RECYCLING, RESOLUTION
NO. 02-031 (DEVELOPMENT SERVICES)
City Manager Groomes reported that staff has been working with both service providers to clarify
and document the details necessary to formalize and finalize the franchise agreements. He further
indicated that the following items still need some discussion for resolution inasmuch as there are
two differences of opinion bet the two service providers: I
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• Definition of commercial service versus residential services, particularly as it relates to
multi-family residential, which in staff's view, spills over to mobilehome parks and with
respect to the application of the discount offered to seniors.
• One time administrative recovery fee for staff work initially intended to be $50,000. Waste
Management has agreed to $25,000.
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City Manager Groomes recommended that the City Council move forward and adopt the agreement
as presented for Waste Management, Inc.
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Council Member Calas referred to the residents of mobilehome parks who think they will be
1 getting 15% off their bill, and that Waste Management is their service provider, and stated that she
did not feel that this item should be pushed through until the City Council has all of the facts and
can inform the people. In fact, this evening, mobilehome park residents are meeting in the
Community Center, and none of them are able to attend tonight's meeting and speak.
Mayor Sweeney stated that he, too, was concerned about the mobilehome park issue. He further
indicated that it was his appraisal experience that single-family dwellings are classified as having
two-to-four units. They do not have a bin, they have single cans. Apartments are classified as
having five units and above. Such units require an apartment manager or have other specific rules
and regulations relative to apartments. They are considered commercial.
Public Comments
Steve Tucker, 1970 E. 213"' Street, Carson, California 90745, representing Waste Management,
Inc., informed the City Council that, literally, there was no clear standard. The interpretation
would be up to the discretion of the City Council. He referred to the RFP and stated that this issue
was not clear, so it was their assumption that it was not based on land use.
Jim Ambroso, 9200 Glenoaks Boulevard, Los Angeles, California 91352, representing BFI, stated
that they felt the RFP was clear and referred to Page 2, Table 2 of the RFP. He further indicated
that he did not have an opinion different to what was stated previously by Mayor Sweeney.
A brief discussion ensued regarding the City's request for proposal.
Council Member Dear stated that he felt that the waste haulers do not determine what the City
Council determines. The City. Council makes the determination whether or not they want an
exclusive residential hauler to service the residential customers, whether they have a bin or not.
He recognized the clarification based upon the real estate industry, but he felt strongly that
mobilehome parks, apartments, and townhouses ought to be serviced by the residential hauler
because senior citizens would receive a discount, and he encouraged his colleagues to support the
senior citizens in Carson by letting Waste Management service them.
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Mayor Sweeney agreed that there needs to be a senior discount available.
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Mayor Pro Tem Frank stated that she would feel more comfortable if the City Council dealt with
the senior discount before the policy issue relative to what is commercial and what is residential.
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Council Member Calas referred to the five or six senior housing units and confirmed that the senior
discount would apply to them as well.
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Public Comments
f Mark Koorenny, 920 Hampshire Road, No. A-19, Westlake Village, California 91361,
representing BFI, stated that he was available to answer questions. Upon inquiry, he clarified that
he was not authorized to discuss the senior discount. He informed the City Council that other
representatives were in attendance and could discuss the senior discount issue.
Harry Barron, 286 E. 215' Street, Carson, California 90745, clarified that he wished to speak on
Item No. 2.
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Jim Ambroso, 9200 Glenoaks Boulevard, Los Angeles, California 91352, representing BFI, stated
that BFI was prepared to offer a 15% discount to mobilehome residents and senior housing
residents.
RECOMMENDATION for the City Council:
1. WAIVE further reading and ADOPT Resolution No. 02-031, "A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, APPROVING A
SOLID WASTE FRANCHISE AGREEMENT WITH WASTE MANAGEMENT INC."
ACTION: It was moved that the City Council determine that mobilehome parks, multiple-
family dwellings, apartments, condominiums, townhouses, and senior citizen housings be in the
purview of Waste Management on motion of Dear and seconded by Calas.
Council Member Dear subsequently clarified that the intent of his motion was to use land use to
determine whether the service provided would be Waste Management or BFI and was accepted by
Calas.
Mayor Sweeney offered a substitute motion to make the policy decision and designate commercial
as being four or more units that would be based on the real estate industry standard and was
seconded by Ontal.
Council Member Dear offered a second substitute motion to go with the original motion and have
trash pickup go along zoning classifications, seconded by Calas and failed to carry with Sweeney,
Frank, and Ontal voting Noe.
Mayor Pro Tern Frank referred to the substitute motion and confirmed that the intent of the motion
was to designate commercial as being five or more units and to,include the 15% percent senior
citizen discount with Sweeney concurring.
The substitute motion was carried with Calas and Dear voting Noe.
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WITH FURTHER READING WAIVED, Resolution No. 02-031 was PASSED, APPROVED and
ADOPTED, as read by title only, with the inclusion of the definition of residential, recommended
by City Attorney Thorson, on motion of Frank, seconded by Ontal and unanimously carried.
f Upon inquiry, Mayor Pro Tem Frank agreed to accept the $25,000 administrative fee offered by
Waste Management, with no objections heard. '
ITEM NO. (2) APPROVAL OF SOLID WASTE FRANCHISE AGREEMENT FOR
COMMERCIAL/INDUSTRIAL, RESOLUTION NO. 02-032 (DEVELOPMENT
SERVICES)
Public Comments
Harry Barron, 286 E. 215' Street, Carson, California Carson, 90745, expressed concern over
issues such as dust, air pollution, and traffic congestion in the City. He felt that this agreement was
not in the best interests of the City and stated that granting this agreement with BFI will put more
trucks on the City street to spew out more smog and diesel, per the SCAQMD. He referred to
Waste Management and stated that he felt that it made sense that the City would get a better rate if
they got the whole package.
Jim Ambroso, 9200 Glenoaks Boulevard, Los Angeles, California 91352, thanked staff for their
extraordinary efforts to try to reach an agreement this week. He referred to the franchise
agreement and stated that after having seen the agreement, he felt that a number of the sections
need to be changed, e.g., administrative fee, handling and compensation of AB 939, ownership of
the waste stream, etc. He offered a new, fully signed agreement document with a corporate
guarantee.
Mayor Sweeney stated that City staff would provide the signed document.
Rita Boggs, 21328 Island, Carson, California 90745, raised the following inquiries:
• Is the resolution considered to be subject to a referendum?
• In the future, will the rates escalate at a different rate for mobilehome parks, for example, than
the residential and will that put them (senior citizens) at a disadvantage?
She commented that the City Council was giving great power to Measure T with respect to BFI. It
was alleged that Mr. Pryce wrote a letter to BFI giving them the bid numbers that Waste
Management submitted. It has never been committee whether BFI received a letter or if there was
an agreement with Mr. Pryce to produce such a letter. She referred to letters that were mailed to
the parks assuring them of your support and stated that they would make sure that the parks know
that Council Members Dear and Calas were the people who voted to support their interests in
retaining Waste Management.
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Steve South, 6762 Simm Avenue, Buena ark, California 90621, Chief Operating Officer, EDCO a
Disposal Corporation, stated that they were pleased to have been a part of the process. Their
December 6 submittal for commercial services only was the lowest submittal of all of the
providers. Their response included residential, commercial, and industrial. On February 27, they
t are still offering the lowest commercial rate to the City. He briefly discussed the comparison of his
company's rates to BFI.
Vera Robles DeWitt, 724 E. Carson Street, Carson, California 90745, requested that the City
Council allow responses to the people who have posed questions.
Council Member Ontal offered a friendly amendment relative to Waste Management to indemnify
the City on CERCLA indemnification for the residential trash going to their transfer station, which
had been agreed to during discussion last week.
Mayor Sweeney agreed that a motion to reconsider would be in order after responding to the
inquiries raised by Dr. Boggs.
Chief Deputy City Clerk Higaki read back the question raised by Dr. Boggs, and Mayor Sweeney
responded that the resolution could be subject to a referendum.
Chief Deputy City Clerk Higaki read back the question raised by Dr. Boggs, and City Manager
Groomes responded that the residential contract awarded to Waste Management has a flat rate
increase over a three-year period. That rate would be subject to CPI connected potential increase
after year three.
Mayor Sweeney added, for the record, that it was with no franchise fee and no host fee for five
years on the transfer station and that was being respectful of the initiative.
City Manager Groomes continued that with respect to BFI that control would be subject to CPI
increase after the fist year. There would be a franchise fee included with BFI.
Council Member Dear stated that it would seem that people living in mobilehome parks would be
experiencing cost increases for trash collection based on CPI and that people living in mobilehome
parks are at the whim of commercial increases.
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Upon inquiry, City Manager Groomes reported that in mobilehome parks, the owners pay and then
i there is a pass through to residents.
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Upon inquiry, Development Services General Manager Gallant confirmed that there would be a
$21 dollar reduction with this contract.
Steve South, representing EDCO Disposal Corporation, explained that several rates in the three-
year bins were going up and cited increase, such as $17.49 per month for six times per week;
$12.34 per month for five times per week; and $6.83 per month for four times per week.
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Upon inquiry, City Attorney Thorson stated that the City Council could approve an agreement with
EDCO Disposal Corporation and direct staff to come back with an agreement.
Upon inquiry by Council Member Dear, Mr. Ambroso, representing BFI, agreed to the use of
alternative fuel for half of his vehicles and to transition the remainder of the vehicles in two years.
Council Member Dear directed the following questions to Mr. Ambroso:
Dear: Have you at any time within the last three years hired Pryce, Parker, Hill for legal
services?
Ambroso: We - BFI -- when it engages contracts of this magnitude -- hires numerous
consultants to help us put these kinds of proposals together - to answer your
question, specifically, yes, we hired Mr. Pryce to help us put this proposal together.
It's common to hire not only legal, but a lot of technical help, as well, to answer
your question specifically.
Dear: Is it true that you received confidential proposal information that Waste Management
provided to the City - the City of Carson -- from Pryce, Parker, Hill?
Ambroso: We had received a copy of a fax that Mr. Pryce sent to us and, for whatever reason,
sent to City staff. I don't know why he did that. We did not direct him to collect
that information and, you know, it happened. So, I can't speak to it any other way
except to talk to Mr. Pryce about it.
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Dear: So, you're saying, he was employed by you as an attorney - his firm was employed
by you as an attorney, and they sent you confidential information that was only privy
to this staff and two council members? Is that true?
Ambroso: Mr. Pryce sent us information on some of the rates that were quoted. It was after
the bids were in and he obtained some information that he submitted to City staff
and, at the same time, sent it to us.
Council Member Dear stated that based on the answers from this gentleman, the City Council
should disqualify BFI as a waste hauler in our City.
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RECOMMENDATION for the City Council:
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FEBRUARY 26,2002
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1. WAIVE further reading and ADOPT Resolution No. 02-032, "A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, APPROVING A I
SOLID WASTE FRANCHISE AGREEMENT WITH BFI WASTE SYSTEMS OF
NORTH AMERICA, INC."
ACTION: It was moved to approve a solid waste franchise agreement for
commercial/industrial with EDCO Disposal Corporation and direct staff to come back with an
agreement on motion of Calas and seconded by Dear.
Council Member Ontal stated that two weeks ago he had offered that motion for EDCO. Although
he was included to support EDCO, he did not feel that it was good business practice to change and
that he would vote no.
Council Member Dear offered a substitute motion to continue this item to March 6, 2002, seconded
by Calas, but failed to carry with Sweeney, Frank, and Ontal voting Noe.
The motion failed to carry with Sweeney, Frank, and Ontal voting Noe.
It was moved to concur with the staff recommendation that the waste stream be controlled by the
City on motion of Dear, seconded by Calas and carried with Ontal voting Noe.
Mayor Sweeney commented that the reason why the contracts were split was because there were
issues on both sides — Waste Management was not clean either. He directed staff to go back and
get some of those rates down so that some of the larger sales tax generators would not be adversely
impacted in a significant way.
It was moved to Approve the staff recommendation with two changes. One change is the definition
of five (5) or more residential unites, including mobilehome parks along with
commercial/industrial, and the other is to maintain that the City retains the right to control the
waste stream on motion of Ontal and seconded by Sweeney.
Council Member Dear offered an amendment to the motion to allow three (3) companies to operate
the commercial contract — BFI, EDCO,, and Waste Management, and was not accepted by Ontal.
Council Member Dear suggested to allow BFI and EDCO to share the commercial/industrial
contract, and was not accepted by Ontal.
Council Member Calas clarified that Waste Management has been in business for five years, not
fifteen years.
Mayor Sweeney noted that Dennis Calkins, 21302 Nicolle Avenue, Carson, California 90745,
wanted to know how many times a week is a mobilehome park picked up typically.
City Clerk Kawagoe stated that her park has two times a week pickup.
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Development Services General Manager Gallant stated that some parks have three times a week
pickup.
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City Attorney Thorson clarified that the 15% discount would apply to the commercial contract as
well.
The motion was carried with Calas and Dear voting Noe.
ADJOURNMENT:
The meeting was Adjourned at 8:28 P.M. by Mayor Sweeney.
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ATTEST:
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CITY CLERK Y My UNM
Carson City Council
FEBRUARY 26,2002
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