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Home My WebLink AboutMinutes - August 9, 2022 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, AUGUST 9, 2022 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, August 9, 2022, commencing at 7:01 a.m. Present: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, and Mayor Chandler Absent: Mayor Pro Tempore Hothi Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Nashed Vanessa Barberis and Brad Cea, with Waste Management, provided a PowerPoint presentation regarding the Waste Management (WM) contract extension and Senate Bill (SB) 1383. Specific topics of discussion included current contract terms, continued and new City programs, proposed contract updates, SB 1383 organic services, education campaign, contamination monitoring and route audits, residential rate structure, multi-family tenant rates, survey results, and next steps. Council discussion ensued with City Manager Schwabauer, Public Works Director Charlie Swimley, and Waste Management Representatives Barberis and Cea regarding the Consumer Price Index, the application of Senate Bill 1383 on multi-family dwellings and apartment structures, whether trash bags advertised as compostable are compostable or not, the advantages and disadvantages of Rate Structure Model #1 and Model #2, and the incorporation of a senior discount in both models. Lisa Craig provided public comment on the item. None. No action was taken by the City Council. The meeting was adjourned at 8:09 a.m. A.Call to Order / Roll Call B.Topics B-1 Receive Information on Senate Bill 1383 Implementation and Direction on Waste Management Contract Extension and Rate Structure (PW) C. Comments by Public on Non-Agenda Items THE TIME ALLOWED PER NON-AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES. D.Adjournment ATTEST: Olivia Nashed City Clerk 1 The City of Lodi WM Contract Extension 2023 CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM2 Contract Terms •Current term: 4/1/2002 –12/31/2023 •Upcoming term: 1/1/2023 –12/31/2030 •WM option: 1/1/2031 –12/31/2035 (new) New State Regulation SB 1383 •City and WM agree to exercise option early •New services and processes to meet City’s requirements for SB 1383 OVERVIEW THE CITY OF LODI –WM CONTRACT EXTENSION CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM3 New City Benefits •SB 1383 Compliance Services added •Funding for additional city staff $125,000 annually •Increased Street Maintenance fee $330,000 annually •New Downtown Maintenance fee $100,000 annually •Administrative Payment $250,000 annually, 2023 -2027 WM Changes •Residential overage/contamination fee beginning in 2024 to reduce overfilled carts and recycling/organics contamination •Restructuring of residential rates for reduction in overfilled carts, increased diversion, and resident affordability •Annual rate adjustment mechanism changing from 80% of CPI-All Items San Francisco, Oakland, Hayward to 100% CPI-Water, Sewer, Trash index •Truck-life extended from 8 years to 10 years for services in Lodi Continued Services •City Street Sweeping disposal at no charge •Annual neighborhood curbside cleanup •Free City Facility waste/recycling collection of up to 30 locations •Four annual e-waste and universal waste recycling events / One annual HHW event for the public at Transfer Station •Illegal dumping cleanup available up to 35 times per year •Compressed Natural Gas vehicles CONTINUED AND NEW CITY PROGRAMS THE CITY OF LODI –WM CONTRACT EXTENSION CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM4 SB 1383 ORGANICS SERVICES •Service changes: weekly organics collection for residential and commercial customers (currently recycling/green collected every-other-week on alternating weeks) Jan 2023 •Container changes: new carts with green bodies and color-compliant lids •Cart labels: provides additional education on acceptable materials •Additional education and outreach •Additional reporting and route audit support •Enforcement and monitoring support •Funding for city staff to manage programs and provide outreach within the city through contract term Education Campaign Began 2021 •Bill Inserts, postcards and printed materials •Social Media Digital Ads •Lodi Grape Line bus ads (Q4) PROPOSED CONTRACT UPDATES THE CITY OF LODI –WM CONTRACT EXTENSION CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM5 SB 1383 CONTAMINATION MONITORING & ROUTE AUDITS THE CITY OF LODI –WM CONTRACT EXTENSION Audit Requirements •Ability to audit organic and recycling materials each and every collection service •Continuous customer feedback promotes the right behavior Residential Route Auditing, Contamination Monitoring Compliance Smart TruckTM technology meets: Education &Outreach •Proactive electronic communication •Photograph provides educational component Compliance Recordkeeping &Reporting •Enhances reporting capabilities to meet jurisdictional reporting requirements Timeline: January 1, 2023 Monitoring & notices begin January 1, 2024 Contamination & overage charge begins CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM6 Goal –To provide a rate structure that encourages appropriate service level based on need instead of rate affordability •Current rate structure ranges from $20 -$100 / month depending on the size of the cart, encouraging residents to select service by budget instead of how much service they need •Overfilled carts are unsightly, create litter, and increase service cost •Restructured rates result in reduction of contamination in recycling and organics carts •Adequate service will improve overall diversion to meet state goals •Encouraging proper sorting and usage of 3 stream collection system •Minimizes opportunities for overage and contamination warnings/charges •Rate options include keeping reduced rates for seniors RESIDENTIAL RATE STRUCTURE THE CITY OF LODI –WM CONTRACT EXTENSION CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM7 THE CITY OF LODI –WM CONTRACT EXTENSION RESIDENTIAL RATE STRUCTURE Cart Size Customers % Mix Rate Cost/Gal Annual Tons 20 gal 3,598 18%$25.82 $1.29 1,684 35 gal 10,603 52%$35.60 $1.02 7,237 64 gal 5,634 28%$51.06 $0.80 5,812 96 gal 580 3%$105.37 $1.10 825 To t a l s 20,415 100%$1.01 15,558 Rate Structure with Senior Discount and Affordability Model #1 Cart Size Customers % Mix Rate Cost/Gal Annual Tons** % Rate Change Senior rate 35 gal 3,062 *15%$25.82 $0.74 2,146 0.0% 35 gal 2,042 10%$35.60 $1.02 1,375 0.0% 64 gal 7,145 35%$44.00 $0.69 7,728 -13.8% 96 gal 8,166 40%$44.00 $0.46 11,414 -58.2% To t a l s 20,415 100%$0.64 22,663 Rates with $5 increase for SB 1383 services Annual gallons: 44,684,692 *Max of 15% mix for senior rate. **Annual increase in gallons: 29,148,197 Cart Size Customers % Mix Rate Cost/Gal Annual Tons 20 gal 3,598 18%$20.82 $1.04 1,684 35 gal 10,603 52%$30.60 $0.87 7,237 64 gal 5,634 28%$46.06 $0.72 5,812 96 gal 580 3%$100.37 $1.05 825 To t a l s 20,415 100%$0.92 15,558 Current Residential Rates Annual gallons: 44,684,692 Rate Structure with Senior Discount and Affordability Model #2 Cart Size Customers % Mix Rate Cost/Gal Annual Tons** % Rate Change Senior rate 35 gal 3,062 *15%$25.82 $0.74 2,146 0.0% 35 gal 3,062 15%$43.00 $1.23 2,062 20.8% 64 gal 7,145 35%$43.00 $0.67 7,728 -15.8% 96 gal 7,145 35%$43.00 $0.45 9,987 -59.2% To t a l s 20,415 100%$0.69 21,923 *Max of 15% mix for senior rate. **Annual increase in gallons: 25,910,378 CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM8 MULTI-FAMILY TENANT RATES THE CITY OF LODI –WM CONTRACT EXTENSION CURRENT •Duplex, MFD and mobile homes are currently charged -$1 the 35 gal cart rate, $28.59 per month •Several large MFD complexes in Lodi require service levels that exceed the total collected by tenants •Past approach for bridging the gap of has been to bill property owners the remaining balance of the service rate UPDATED RATES •Proposed update to rate sheets to give city utility billing department the ability to charge MFD tenants the equivalent gallon rate for the services provided to the property. Size Equivalent Monthly Rate* 35 GALLON REFUSE EQUIVALENT TBD 64 GALLON REFUSE EQUIVALENT TBD 96 GALLON REFUSE EQUIVALENT TBD *Rate will reflect residential rate structure chosen by council OVERAGE/CONTAMINATION •Owners are currently billed for overage and contamination incidents •Change: Three warnings and then automatically upsized to avoid overage charges •Change: Tenants billed for overage and contamination incidents EXAMPLE 4 -4 YARD FEL 4X WK $5,433.68 81 tenants billed @ $28.59 $2,315.79 Underbilled monthly $3,117.89 Right-sizing efforts are underway to ensure that properties have the corrected level of service. In January, billing will be updated to bill tenants the equivalent rate to meet the full cost of service. CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM9 How Lodi Customers Rate WM: “Julio is my collection person. He is professional, friendly and informed and really helpful. I have health issues and his attitude really helps.” “Very dependable and reliable.” “I had the most pleasant experience with customer service as they resolved an issue with miscommunication that resulted from our trash not being picked up. Everything was resolved efficiently and quickly. “The drivers are very friendly! Always waving hello to me when I’m backing out of my garage to go to work!” Customer service survey results June 2022 for Residential customers in the City of Lodi.Customers rank on a scale of 1- 10.Scores of 9-10 are considered “promoters”who would recommend this service to others. CONTINUOUS PERFORMANCE: June 2022 Survey Results THE CITY OF LODI –WM CONTRACT EXTENSION 8.95 Consistency &Reliability 8.10 Ease of Scheduling 8.54 Satisfaction with Waste Collection Services 9.19 Clear Communication 9.03 Driver Behavior CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM10 Public Hearing notices No later than August 19th Conduct Public Hearing October 5 th (tentatively) Contract Extension October 5 th after public hearing Contract and Rates Effective Date January 1 st, 2023 NEXT STEPS THE CITY OF LODI –WM CONTRACT EXTENSION CONFIDENTIAL AND PROPRIETARY INFORMATION OF WM Thank you. 11 Presented By: Vanessa Barberis Brad Cea Waste Management / Central Valley Waste Waste Management Northern Ca/Nv (209) 323-0257 (480) 440-3884 vbarberi@wm.com bcea@wm.com