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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. I � 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) G 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 ' between 1 • 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. b Unofficial Until Approved By City Council City Manager Groomes recommended that the City Council move forward and adopt the agreement as presented for Waste Management, Inc. { 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. i Mayor Sweeney agreed that there needs to be a senior discount available. i 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. i Council Member Calas referred to the five or six senior housing units and confirmed that the senior discount would apply to them as well. Carson City Council FEBRUARY 26,2002 PAGE 2 i Unofficial Until Approved By City Council 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. r 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. I Carson City Council FEBRUARY 26,2002 PAGE 3 I i Unofficial Until Approved By City Council 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. Carson City Council FEBRUARY 26,2002 PAGE 4 Unofficial Until Approved i By City Council I j. 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. f Upon inquiry, City Manager Groomes reported that in mobilehome parks, the owners pay and then i there is a pass through to residents. i 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. Carson City Council FEBRUARY 26,2002 PAGE 5 Unofficial Until Approved By City Council 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. i 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. `f RECOMMENDATION for the City Council: Carson City Council FEBRUARY 26,2002 PAGE 6 Unofficial Until Approved By City Council 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. Carson City Council FEBRUARY 26,2002 PAGE 7 I Unofficial Until Approved By City Council Development Services General Manager Gallant stated that some parks have three times a week pickup. f' 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. W MAY R ATTEST: i PROV D ACID IDOPT CITY CLERK Y My UNM Carson City Council FEBRUARY 26,2002 PAGE 8