Desk Item 22c Staff Report Public Hearing to Consider Solid Waste Management Issues: c) Solid Waste Management Programs and Rate Structure FactorsTOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: December 5, 1994
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
COUNCIL AGENDA
DATE: 12-5-94
ITEM NO.
DESK ITEM 22Q
PUBLIC HEARING TO CONSIDER SOLID WASTE MANAGEMENT ISSUES:
c) SOLID WASTE MANAGEMENT PROGRAMS AND RATE STRUCTURE FACTORS
RECOMMENDATION:
For information, only.
DISCUSSION:
The following Information is provided, as requested.
1. Comparative Rate Information
Attachment 1 lists solid waste management rates for cities throughout the greater San Francisco
Bay Area. Estimated rates of between $18 and $20 per can is within the range of rates in other
cities. Attachment 1, page 2, lists monthly yard waste collection fees. The contracted fee of $5.39
Is also in the range of fees.
2. Rate Increase History
A brief review of Town records Indicates that rates were Increased In fiscal years 1983, 1986, 1990,
1991, and 1992. A time and motion study conducted In about 1985 showed that Los Gatos rates
were subsidizing other West Valley Cities; this created a positive cash balance for Los Gatos. Rates
were not Increased for the four-year period from 1986 to 1990 because rates were subsidized by
this balance. The recent audit Indicates, based on a new time and motion study, that Los Gatos
rates are slightly subsidized by the other West Valley cities. Therefore, Los Gatos refuse collection
costs will Increase more than other cities.
PREPARED BY: Regina A. Fa)
Community
RAF:dr
CSD04:A: \CNCLR PTS\RECYCLNG. DSK
ATTACHMENTS: 1. Residential Rate Survey as of 7-1-94.
2. Addendum to Performance Audit Report Dated November 2, 1994.
DISTRIBUTION:
Revised: 12/5/94 2:59 pm
Reviewed by: '?.--Attorney Clerk Fina reasurer
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PUBLIC HEARING TO CONSIDER SOUD WASTE MANAGEMENT ISSUES; C) SOUD
WASTE MANAGEMENT PROGRAMS AND RATE STRUCTURE FACTORS
DATE December 5, 1994
3. Performance Audit Addendum
Attachment 2 is an addendum to the November 2, 1994, Performance Audit Report prepared by
Hilton Famkopf and Hobson (HF&H). The addendum recalculates the balancing account using the
FY 1992-93 allowed pre-tax profit of 13.6 percent. This reduces the balancing account deficit by
$132,000. This will have minimal effect on rates.
NZIAN
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ATTACHMENT 1
Page 1
ATHERTON
CAMPBE:
• cz.Nc.^.RO
CUPERTINO
• ;ANVIL;-.T.
G1LR:Y
LOS ALTOS
•
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BFI
GREEN VALLEY
CONCORD DISP
LOS ALTOS GARBAGE
VALLEY WASTE
SOUTH VALLEY
LOS ALTOS GARBAGE
1 OS ALTOS HILLS LOS ALTOS GARBAGE
LDS G TOs
M.1.P;TAS
MILL VALEEv
GREEN VALLEY
BF!
MARIN SANRARY
MONTS S=KENO GR_ N VAL E"
MORGAN ►•I+:L
MT.N V1:ti'V
DAKLA :
OR INOA
SC:JTH VALLEY
FOOTHILL
OAKLANC SCAvANGER
ORINOAIMORAGA
PAL= ALTO PAS::
PLEASANT HILL 8F1
PGRT:.A VALLEY LOS ALTOS GARBAGE
RECWCoO C:TY IFI
SAN .:OSE GRN TM/ WSTRN WIT
SAN MATZO B11
SANTA C:ARA
* SARATOGA
STANFORM
•
:.
MISSION TRAILS
GREEN VALE!
PENINSULA
SUNNYVALE SPECIALTIC GARBAGE
waLNL1T :REEK VAL_Y WASTE
w/yard waste average
weekly y.w. 1 can avg = 519.22/mo
Subsidy from General Fund
Igal a cNA
15.61 29.61
23.25 31.10
13.75 27.55
21.75 43.50
16.80 33.36
34.05 32.15
5.65 13.30
14.72 25.32
7.60 12.66
11.Q0 22.00
13.74 30.23
25.35 50.70
16.50 34.00
21.20 30.35
19.00 311.00
10.32 19.58
13.95 24.95
13.24 28.38
8.10 14.55
15.27 30.54
17.13 25.52
18.62
13.60 37.20
517.71 $28.85
23.44 VWE_1KLY
WEEKLY
WE=i4Y
BIWEEKLY
WE.VtLY
WEEKLY
CURBSIDE
utikEin prCYCLINQ
BIWEEKLY
1205 WEEKLY
WEEKLY
BNW$_KLY
WEEKY
13.44 WEE:LLY
BIWEEKLY
BIWEEKLY
WEEKLY
13.10 WEEKLY
WEEKLY
WEa'KLY
13.92 BIWEEKLY
BIWUUKLY
YW
PNYCYCLI'sG
1 TIME/MONTH
NONE
WEEKLY
! 1A411 PIER wssx
BIWEEKLY
TOT1A 0010v010
WEEKLY
NONE
/IWEEKLY
Tv,re..o = •
NONE
NONE -
PILOT
NONE
NONE
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8IWEKLY ( City
Taro move= Snbsid
WEEKLY NONE
W! KLY , &Io oA CAN IRA wlbc
WEEKLY WEEKLY
muciperscanmwm
IIWEEKLY WEEKLY
BIWEEKLY NONE
WEEKLY 1 TIME/MONTH
AWN
=KLY (City
M sneser Subai
NONE
NONE
WEEKLY
,sons c 1TAPrIRs
WEEKLY WEEKLY
Lcolt P4 srwesr
NONE
WEEKLY
imTw .vp 1 %j - TAiii
ATTACHMENT 1
Page 2
Residential Recycling and Yard Waste Fees in Other Cities
Following are the current fees per household per month charged to residents for residential
recycling and yard waste services. The survey area included Alameda and Santa Clara
Counties. The variable levels of service are categorized as shown.
JURISDICTION
S/HOUSEHOLD
PER MONTH NOTES
CONTAINERIZED YARD WASTE SERVICES
Group #1 (Most Comparable Services)
City of Fremont $5.24
City of Turlock
Group #2 (Every other week collection)
City of Cupertino
City of Los Altos
City of Mountain View
Wheeled carts provided;
weekly co ction
$6.45 Wheeled carts provided;
weekly collection
$4.50 Every other week collection;
wheeled carts provided
$8.25 Every other week collection;
wheeled carts provided
$3.60 (balance
of program costs
paid by City)
Group #3 (Resident provided containers)
Every other week collection;
wheeled .:arts provided
City of Saratoga $5.90 Resident -provided
containers; weekly collection
City of Palo Alto Not available Resident -provided
containers; weekly collection
CURBSIDE RECYCLING SERVICES
City of Fremont
City of San Jose
YW For.3_
$4.08 Includes mixed paper; 3 bins
provided all households
Not available Includes mixed paper; 3 bins
provided all households
1111 .0N ► ANhc)r1 ti ►IOIV (
n.IvI•.,t) �. I,1. 10
i 1 nn. tl�t1 1,1.nt:1k.•nt.•t,t
10 00 C:01c C'vn,tt•t 1 hi“., ;iuit a IA'
1,r111.111t.('nitf, rt,la9•1',1M•21)I
i; I,plk+tn S1J/711 177:
I.t� SI(1/711 1)')4
December 5, 1991
NOst•It- FQY NOW 71371
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ATTACHMENT 2
Page 1
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Phone
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Ms. Vera Dah1e-T.senze
West Valley Cities' Solid Waste Program Manager
City of Monte Sercnn
18041 Saratoga -Los Gatos Road
Monte Sc+rcno, CA 95030
Re: Addendum to Performance Audit Report Dated November 2, 1994
Dear Vera:
I aIn writing to correct our final 1993 Performance Audit Report dated
November 2, 1994, relative to the calculation of tite balancing account balance
due to Green Valley Disposal Company as of June 30, 1993.
Revised Balancing Account and Rale Adjustments
On page 13 of our report, we concluded that the Company's calculation of the
$910,000 cunnulativr deficit balancing account for PY 1992-93 was reasonable.
However, based on recent discussions with members of the Rate Review
Committee (RRC), we realize that the calculation does not ntxurately reflect the
action of the City Councils at the conclusion of the ICY 1992-93 rate review.
Therefore, we have recalculated the balancing account, utilizing the PY 1992-93
allowed pre-tax profit of 13.6%. The correct FY 1992-93 cumulative deficit
balancing account is $778,000. The itnpact of this change on our recommended
rate adjustments is shown below:
Final Revised
Rate Rate
Jurisdiction Adjustment Adjustment
Campbell 70.1 % 18.6%
Los Gatos 22.1% 20.3%
Monte Sereno 15.2% 14.6%
Saratoga (9.6%) (9.3%)
Santa Clara manly 4:7% 4:7%
'1t YC'., ii Of Of.
. t .- .y •.. • • • W
12i21' 'a 121a' a 5ia 711 3294
0.a2
1 111.1 ON FARNKOI h 1 IOISSON
December 5, 1994
Ms. Vera Dahle-Lacaze
Page 2
Background
At the RRC's direction, we reviewed the Company's calculation of the FY 1992-
93 cumulative balancing account in late August. At the time, it was our
understanding that the Jurisdictions had granted a pre-tax profit of 13.6% on
expenses, excluding disposal and franchise fees, and that the 73.6% factor had
been calculated to be the equivalent of a 5% after-tax return on all expenses.
Because of this understanding, we did not adjust the return calculated by the
Company based on a 5% after-tax return on all expenses.
At a meeting of the RRC and the Company in early November, the Company's
consultants stated that our approval of the Company's balancing account
calculation constituted an endorsement of a 5% after-tax return on all expenses
for that year, which, they pointed out, was different from what the City Councils
had approved during the previous rate review. We realized then that we had
misunderstood the Jurisdictions' previous allowed profit calculation and,
therefore, had made an error in calculating the cumulative balancing account
balance for FY 1992-93. Because the consultants were excused from that meeting
and negotiations between the Company and RRC were attempted, we did not
follow up at that time with the RRC regarding this issue.
Analysis
In its calculation of the FY 1992-93 balancing account contribution, the Company
calculated the allowed profit for the year equal to a 5% after-tax return. The total
pre-tax profit from the Cities of Campbell, Los Gatos, Monte Sereno, and -
Saratoga was calculated as $886,000.
During the IFY 1992-93 rate review, the RRC calculated the allowed pre-tax profit
equal to 13.6% of operating expenses, excluding disposal fees and franchise fees.
Based on the Company's reported actual expenses for FY 1992-93, we have
calculated that the allowed profit should be $754,000, or $132,000 less than the
amount calculated by the Company. Thus, the FY 1992-93 cumulative deficit
balancing account should be $778,000. The required rate adjustments, using this
—__revised-ba 1 an ci n g-account-balaruETare-ahowrrabove.
12107 3 510 713 3294
P.03
iorlInw1rAk64HO)I C)N
December 5, 1994
Ms. Vera Dahle-LacA7e
Page 3
We apologize for any inconvenience this error may have caused. If you have
any questions regarding our calculations, please call me.
Very truly yours,
i.. Scott Hobson
Partner
fcrc #o w;.r
December 5, 1994
Los Gatos, California
HEARINGS CONTINUED
SOLID WASTE MANAGEMENT CONT.
Speakers continued:
Gerard Wen, representing Green Valley Disposal Company, 573 University Ave., spoke of staff
recommendations as being acceptable to the company except for Item #3, the acceptance of the
performance audit report relating to operating ratio recommendations. Correspondence received
today reopened an item which was considered resolved. The balancing account needs to be
reconsidered. The rate review committee and the other three jurisdictions will be working with
Green Valley in setting up a time table allowing for the implementation of the various
recommendations, such as standardized cans and the fully automated service etc.
Mrs. Lubeck noted that Council had received a desk item referring to Mr. Wen's concern.
Motion by Mr. Attaway, seconded by Mrs. Lubeck, to close the public hearing. Carried
unanimously.
Motion by Mrs. Lubeck, seconded by Mr. Blanton, that the Council accept the performance audit
report except for the operating ratio recommendations and note that Council had received a desk
item on this subject. Carried unanimously.
SOLID WASTE MANAGEMENT/GREEN VALLEY/REFUSE COLLECTION/BASE RATE (22B.24)
Informational item concerning the base rate of GVDC collection services was received and filed.
SOLID WASTE MANAGEMENT/PROGRAMS/RATE STRUCTURE FACTORS (22C.07)
Mayor O'Laughlin stated that this was the time and place duly noted for public hearing to
consider solid waste management issues regarding solid waste management programs and rate
structure factors.
The following people from the audience spoke to this issue:
Alan Young, 17601 Foster Rd, Environmental Task Force at the Methodist Church, spoke of the
environmental options to straight trash collection.
Bill Phillips, 102 Abby Wood Ct., representing the Los Gatos Woods Homeowners Assn., spoke
of the inequities of paying a gardener to dispose of green waste and also paying a flat Green
Valley rate for pick up service of the same green waste.
Don Gaskin, 105 Henning Crt., representing Courtside Homeowners, spoke of the duplication
of effort and expense with the garden waste pick up.
Ray Power, 17652 Tourney Road, asked that yard waste be a variable program. He composts
and does not have yard waste. Some people cannot compost and they should pay for the service.
George Howington, 259 Kensington Way, agrees with the mandated program but does not agree
with the huge increase in cost.
Elaine Chroust, 162 Euclid Ave., spoke in favor of the new program and the need to control the
waste stream. Spoke of the mini can option and the reward for setting out less waste.
Andrew Palmisano, 702 More Ave, agreed with previous speakers and addressed the problem
of fixed incomes and this large increase.
Mark Vermal, 15049 Los Gatos Blvd., spoke of recycling center efforts.
No one else from the audience addressed this issue.
TC: t6: MM120594 6
December 5, 1994
Los Gatos, California
HEARINGS CONTINUED
DRY CLEANING PLANTS CONT.
The following person from the audience addressed the Council:
Younan Kerim, 540 N. Santa Cruz, E-Z Cleaners, asked for Council's consideration of the zone
change.
Reggi Begly, 5851 Starboard Drive, Byron, representing Boewe Pasart manufacturers of German
dry cleaning machines, spoke of the safety of the new machinery.
No one else addressed Council on the issue.
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council close the public hearing.
Carried unanimously.
The Town Clerk read the Title of the Draft Ordinance.
Motion by Mrs. Lubeck, seconded by Mr. Blanton, that Council waive the reading of the Draft
Ordinance. Carried unanimously.
Motion by Mrs. Lubeck, seconded by Mr. Attaway, that Council introduce Draft Ordinance
entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING SECTION 29.20.185
OF THE TOWN CODE REGULATING CONDITIONAL USE PERMITS FOR DRY CLEANING
PLANTS IN COMMERCIAL ZONE. Carried unanimously.
Motion by Mrs. Lubeck, seconded by Mr. Attaway, that Council adopt Resolution 1994-174
entitled, RESOLUTION OF THE TOWN OF LOS GATOS ESTABLISHING STANDARD
CONDITIONS OF APPROVAL FOR CONDITIONAL USE PERMITS GRANTED FOR DRY
CLEANING PLANTS. Carried unanimously.
WEED ABATEMENT/OVERRULING OBJECTIONS/RESOLUTION 1994-175 (21.28)
Mayor O'Laughlin stated that this was the time and place duly noted for public hearing to
consider adopting resolution overruling objections and ordering abatement of weeds.
Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, to close the public hearing. Carried
unanimously.
Motion by Mr. attaway, seconded by Mrs. Lubeck, that Council adopt Resolution 1994-
entitled, RESOLUTION OF THE TOWN OF LOS GATOS OVERRULING OBJECTIONS AND
ORDERING ABATEMENT OF WEEDS AS A PUBLIC NUISANCE, Carried unanimously.
SOLID WASTE MANAGEMENT/GREEN VALLEY/PERFORMANCE AUDIT (22A.24)
Mayor O'Laughlin stated that this was the time and place duly noted for public hearing to
consider Green Valley Disposal Company Performance Audit.
The following people from the audience spoke to this issue:
Mark, 15049 Los Gatos Blvd., Social Services Related Affiliates, spoke of the help received from
Green Valley Disposal Company.
Andrew Palmisano, 702 More Ave, addressed the review and findings and asked when they might
be implemented.
TC: D6: MM 120594 5
December 5, 1994
Los Gatos, California
HEARINGS CONTINUED
SOLID WASTE MANAGEMENT CONT.
Council Comments:
Mrs. Benjamin suggested required recycling at the landfill.
Mrs. Lubeck noted the need for phased in rate increases and a program which would benefit the
whole town in an equitable manner.
Mr. Blanton mentioned the 5% populace that does compost and recycle and suggested that
incentives for them would not jeopardize the rates for the overall program.
Mr. O'Laughlin commented on the mini can option as an incentive to those practicing
conservatism.
Motion by Mr. Blanton, seconded by Mrs. Lubeck, to continue this portion of the public hearing
to January 3, 1995. Carried unanimously.
NONDISPOSAL FACILITY ELEMENT/COUNTY WIDE/RESOLUTION 1994-176 (23.07)
Mayor O'Laughlin stated that this was the time and place duly noted for public hearing to
consider adoption of a resolution adopting the County of Santa Clara Countywide Nondisposal
Facility Element.
Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, to close the public hearing. Carried
unanimously.
Motion by Mrs. Lubeck, seconded by Mrs. Benjamin, that Council adopt Resolution 1994-
entitled, RESOLUTION OF THE TOWN OF LOS GATOS ADOPTING THE COUNTY OF
SANTA CLARA COUNTYWIDE NONDISPOSAL FACILITY ELEMENT PURSUANT TO
PUBLIC RESOURCES CODE SECTION 41730 ET SEQ. and include the comment from
Council that this requirement and action is simply more bureaucratic red tape. Carried
unanimously.
SOUTHBAY CABLEVISION/INTERMEDIA PARTNERS/TRANSFER (10.24)
William Haggerty, Executive Vice Pres. & General Manager of Southbay Cablevision, 3450
Garrett, Santa Clara, spoke of being out of town when the report and resolution were prepared
and would like to discuss some of the conclusions in the report with staff.
Larry Anderson, Town Attorney, noted that language addressing both sides of the issue could
be drawn up. Late fees will be addressed and the cable company's need to reasonably raise fees.
Motion by Mr. Attaway, seconded by Mrs. Lubeck, that this item be returned to Council January
3, 1995, so that Mr. Anderson and Mr. Haggerty may work on mutually acceptable language.
Carried unanimously.
CUPOLA SITE/OAK MEADOW PARK/PARK COMMISSION (24.44)
The following people from the audience spoke to this issue:
Susan Landry, Landscape Architect, spoke of the project and the location of the far Northwest
corner of Oak Meadow Park, making it a visibly prominent monument and a useful addition to
the park with good circulation.
TC: D6: MM 120594 7
December 5, 1994
Los Gatos, California
HEARINGS CONTINUED
CUPOLA SITE CONT.
Speakers continued:
Alrie Middlebrook, 140 Wissahickon Ave., supports the restoration of the cupola and the
temporary location at Oak Meadow Park. She urged the master planning of the town plaza and
the possible inclusion of the cupola in that plan for a variety of historical reasons.
Jack Christianson, 110 Lancewood Place, noted the cost of placing the cupola at Oak Meadow.
Andrew Palmisano, 702 More Ave, asked the source of funding for the project.
Mr. LaRocca, Parks, Forestry and Maintenance Director, mentioned the Santa Clara Parks
Charter Fund for the restoration funds, and the town as responsible for continued maintenance.
William York, 203 Palmer Drive, spoke to the temporary nature of the cupola placement.
Emerald Hathaway -Bush, 174 Villa Ave., supported the restoration and temporary location at
Oak Meadow Park and consideration of replacement at the Town Plaza after a comprehensive
Town Plaza Master Plan has been adopted.
Jason Farwell, 121 Laurel Ave., agreed with permanent placement at the Town Plaza.
No one else from the audience addressed this issue.
Motion by Mrs. Lubeck, seconded by Mr. Blanton, that Council approve the Park Commission
recommendation for cupola site location at Oak Meadow Park. Carried unanimously.
TOWN COUNCIL MEETING SCHEDULE/1994-1995 (25.10)
Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, to revise the Town Council Schedule for
1994-95 Fiscal Year cancelling the December 19, 1994 Council meeting. Carried unanimously.
Consensus of Council to consider holding the Commission, Committee and Board Study Sessions
on one Saturday rather than on many alternate Mondays for reasons of economy, clarity,
organization and public convenience. Staff will bring dates back to Council for consideration
January 3, 1995.
ADJOURNMENT
Motion by Mr. Attaway, seconded by Mrs. Benjamin, that this evening's meeting be adjourned
at 10:02 p.m. Carried unanimously.
ATTEST:
Marian V. Cosgrove
Town Clerk
TC: D6: MM 120594 8