Dec 14, 2021 Special City Council

WE ARE READY TO GO, MR.

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VERY GOOD WE ARE AT THIS TIME, ASSUMING THE MEETING, IT IS 5:59.

[1) CALL TO ORDER: Mayor Reyna]

THIS PORTION OF THE MEETING IS RESERVED FOR PERSONS DESIRING TO ADDRESS THE COUNCIL AND INCLUDING THE COUNCIL ACTING AS A GOVERNING BOARD FOR THE SUCCESSOR AGENCY ON ANY MATTER OF THIS AGENDA AND FOR WHICH THE COUNCIL AND SUCCESSOR AGENCY HAVE JURISDICTION.

SPEAKERS ARE LIMITED TO TWO MINUTES.

A MAXIMUM OF 30 MINUTES WILL BE ALLOWED FOR ANY ONE SUBJECT.

PLEASE STATE YOUR NAME FOR THE RECORD BEFORE MAKING YOUR PRESENTATION.

BROWN ACT REQUIREMENTS THE BROWN ACT DOES NOT ALLOW ACTION OR DISCUSSION ON ITEMS NOT ON THE AGENDA, SUBJECT TO NARROW EXCEPTIONS.

THIS WILL LIMIT A COUNCIL MEMBERS RESPONSE FOR QUESTIONS OR TO QUESTIONS RATHER AND REQUESTS MADE IN THIS COMMENT PERIOD.

ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? OK, I SEE NONE.

MADAM CLERK, DO WE HAVE ANY EMAIL COMMENTS? GIVE US A MINUTE. SURE.

MAYOR, WE HAVE NO EMAIL COMMENTS AT THIS TIME.

THANK YOU, MADAM CLERK. WE DON'T HAVE ANYTHING UNDER ITEM FIVE PUBLIC HEARINGS, NEW

[6) a. Study Session: Review and provide guidance to staff regarding the draft Propostion 218 rate notice to consider the following options:]

SO I READ THE OPTIONS AT THIS TIME.

I DON'T THINK THAT'S NECESSARY.

MR. MAYOR, THANK YOU, MR. HURLBERT. YES.

HONORABLE MAYOR AND MEMBERS OF THE COUNCIL.

TONIGHT WE WILL GO THROUGH TWO OR THREE STEPS.

YOU'LL GET A LOT OF INFORMATION TONIGHT.

THE END RESULT WILL BE A COUPLE OF DECISIONS AND DIRECTION TO STAFF REGARDING OUR SANITATION ENTERPRISE RATE STUDY AND AND THE ASSOCIATED DATA THAT GOES ALONG WITH THAT TONIGHT. FIRST, I WILL INTRODUCE WILLIAM SCHOEN IS WITH OUR CONSULTANT, R3, WHO'S DONE THE RATE STUDY ITSELF AND PROVIDED THEIR ANALYSIS OF OUR CURRENT STATE AND IN WAYS TO ADJUST OUR RATE STRUCTURE GOING FORWARD TO CREATE A SUSTAINABLE ENTERPRISE.

WE'LL ALSO HEAR SOME PRETTY HIGH LEVEL INFORMATION ABOUT DIFFERENT OPTIONS, DIFFERENT SCENARIOS AND ALSO THE OPTION OF OUTSOURCING SANITATION SERVICE OUTRIGHT, IF THAT'S SOMETHING THE COUNCIL WANTS TO CONSIDER STUDY.

SO MY RECOMMENDATION IS TO GO AHEAD AND AND LET'S GO THROUGH THE PRESENTATION OF THE REPORT WITH MR. SCHOEN, AND THEN WE'LL HAVE A PRESENTATION FROM STAFF.

AND THEN WHAT I'M HOPING IS THEN WE CAN HAVE A DISCUSSION.

SO IF YOU HAVE A QUESTION THAT YOU JUST DON'T FEEL LIKE WE SHOULD GO ON WITH THAT ANSWER AND FEEL FREE TO INTERRUPT, BUT OTHERWISE, LET'S GET THROUGH THE PRESENTATION AND THEN WE CAN HAVE A MORE DETAILED DISCUSSION.

THANK YOU, MR. HURLBERT.

WE HAVE THE FLOOR.

GREAT. THANK YOU, MR. MAYOR, COUNCIL MEMBERS, AGAIN, MY NAME IS WILLIAM SCHOEN WITH OUR THREE CONSULTING GROUP.

I MANAGE THE FINANCIAL PLAN AND RATE STUDY, WHICH WE'D LIKE TO GO OVER WITH YOU TODAY.

WHAT I'D LIKE TO COVER QUICKLY IS THE OVERALL PROJECT SCOPE, WHICH WAS A LITTLE MORE THAN JUST THE FINANCIAL PLAN, BUT REALLY FOCUS ON THE FINANCIAL PLAN AND THE RATE STUDY, WHICH IS WHAT WE'RE HERE TODAY TO DISCUSS.

TALK TO YOU ABOUT YOUR YOUR RESIDENTIAL RATES AND HOW THOSE COMPARE TO OTHER RATES IN THE AREA. AND THEN TALK ABOUT THE RATE ADJUSTMENT SCENARIOS THAT WE WERE ASKED TO ANALYZE AND LOOK AT WHAT YOUR OPTIONS ARE TO TO KEEP THE FINANCING THE ENTERPRISE FUND FINANCIALLY WHOLE. AND THEN ALSO PROVIDE A HIGH LEVEL REVIEW OF THE OPTION OF POTENTIALLY OUTSOURCING THE CITY'S COLLECTION OPERATIONS TO THE PRIVATE SECTOR.

SO OUR OVERALL PROJECT WORK SCOPE INCLUDED DEVELOPING AN SB THIRTEEN EIGHTY THREE LEGISLATIVE COMPLIANCE PLAN, GOING OVER AND PROVIDING AN APPROACH FOR ALL THE THINGS THAT NEED TO HAPPEN FOR THE CITY TO COMPLY WITH SB THIRTEEN EIGHTY THREE AND ALSO PROVIDING

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BUT THE THE FOCUS OF OUR REVIEW IS CREATING A FINANCIAL PLAN AND A RATE STUDY.

WE CREATED AN EXCEL BASED RATE MODEL THAT PROJECTED EXPENSES AND REVENUES OVER A 10 YEAR PERIOD AND THEN LOOKED AT OPTIONS FOR ADJUSTING RATES AND DEVELOPING RATE ADJUSTMENT SCENARIOS FOR A FIVE YEAR PERIOD, CONSISTENT WITH A PROP TO 18 NOTICE.

IN ADDITION, THE CITY ASKED US TO LOOK AT THE POTENTIAL FOR WHAT OUTSOURCING THOSE OPERATIONS TO THE PRIVATE SECTOR MIGHT LOOK LIKE AND WHAT THE FINANCIAL IMPACTS MIGHT BE.

SO IN TERMS OF OUR MAJOR FINDINGS.

FIRST OF ALL, THE THE CURRENT BUDGET THIS YEAR'S FISCAL BUDGET PROJECTS A NINE HUNDRED THOUSAND DOLLARS REVENUE SHORTFALL.

THAT'S ABOUT A 30 PERCENT REVENUE SHORTFALL.

THE GOOD NEWS IS THAT THE SCENT OF PATIENT ENTERPRISE HAS SIGNIFICANT OPERATING RESERVES.

AT THE START OF THIS FISCAL YEAR, MORE THAN $3 MILLION IN OPERATING RESERVES, WHICH IS ABOUT EIGHTY FIVE PERCENT OF ANNUAL EXPENSES.

WHAT WE RECOMMEND AND WHAT WE SEE IN THE INDUSTRY TYPICALLY IS AN OPERATING RESERVE OF ABOUT TWO TO THREE MONTHS OF EXPENSES SEVENTEEN TO TWENTY FIVE PERCENT, AND I BELIEVE THE CITY'S TARGET IS A 25 PERCENT OPERATING RATIO.

SO WHILE YOU DO HAVE A SIGNIFICANT OPERATING SHORTFALL IN A NUMBER OF ADDITIONAL EXPENSES THAT THAT NEED TO BE ADDRESSED, THE THE ENTERPRISE FUND, THE OPERATING RESERVES GIVE YOU SOME FLEXIBILITY. THEY DON'T SOLVE THE PROBLEM, BUT THEY GIVE YOU SOME FLEXIBILITY.

THE THE COLLECTION OPERATIONS FLEET IS OLD, AND MANY OF THE VEHICLES NEED TO BE REPLACED AT AN AVERAGE COST OF ABOUT HALF A MILLION DOLLARS ANNUALLY OVER THE NEXT 10 YEARS.

SO THAT'S AN ADDITIONAL CITY, AN EXPENSE THAT WOULD BE INCURRED.

THE CITY'S RESIDENTIAL RATE IS AT THE HIGHER END OF RATES IN THE REGION, AND I'LL GO OVER THAT WITH THE NEXT SLIDE.

WE'LL SHOW THOSE. SHOW YOU HOW THAT RATE COMPARES TO OTHERS IN THE AREA.

BUT GOING FORWARD, ADDITIONAL REVENUES ARE GOING TO BE NEEDED TO FIRST OFFSET AND ADDRESS THE 30 PERCENT REVENUE SHORTFALL IN THE CURRENT BUDGET, PROVIDE FOR THE NECESSARY VEHICLE REPLACEMENTS AGAIN ABOUT $500000 ANNUALLY.

ADD THE REQUIRED SP THIRTEEN EIGHTY THREE RESIDENTIAL AND COMMERCIAL SERVICES.

SO TO COMPLY WITH SB THIRTEEN EIGHTY THREE, THE CITY IS NEGOTIATING WITH AMERICAN REFUSE TO PROVIDE CURBSIDE RECYCLING FOR RESIDENTS AND COMMERCIAL RECYCLING AND COMMERCIAL ORGANICS FOR THE COMMERCIAL SECTOR.

SO THOSE ARE NEW SERVICES AND NEW COSTS THAT ALSO NEED TO BE ADDRESSED GOING FORWARD.

AND THEN ALL OTHER SB THIRTEEN EIGHTY THREE COMPLIANCE COSTS, INCLUDING EDIBLE FOOD RECOVERY REQUIREMENTS, THE PROCUREMENT OF RECYCLED MATERIAL AND CERTAIN OTHER REQUIREMENTS. SO THOSE COSTS HAVE ALSO BEEN BUILT INTO THE RATE MODEL AND THE RATE ADJUSTMENTS WE PROJECTED IN THE VARIOUS SCENARIOS.

THIS IS A SUMMARY OF RATES IN NEIGHBORING JURISDICTIONS, THE CITY'S RATE AT 28.12 IS ABOUT 10 PERCENT HIGHER THAN THE AVERAGE OF THE OTHER RATES.

THE BIG DIFFERENCE, HOWEVER, IS A CITY DOES NOT HAVE CURBSIDE RECYCLING AT THIS POINT, WHILE ALL THE OTHER OF THE OTHER JURISDICTIONS DO.

YOU CAN SEE THAT CURBSIDE RECYCLING IS BOTH WEEKLY AND BIWEEKLY, AND AMERICAN REFUSE HAS PROVIDED A PROPOSAL TO THE CITY FOR BOTH BIWEEKLY AND WEEKLY RECYCLING, WHICH WOULD ADD BETWEEN FIVE AND EIGHT DOLLARS PER WEEK TO THAT EXISTING RATE.

SO THE RATE IS A LITTLE HIGHER TO BEGIN WITH.

NOW, WITH THE ADDITIONAL OF CURBSIDE RECYCLING, THAT RATE WILL GO HIGHER.

ALL OTHER FACTORS ARE THE SAME.

SO MAJOR FINDINGS, I THINK ONE OF THE BIGGEST FINDINGS AND IMPACTING FACTOR ON POTENTIAL RATE ADJUSTMENT SCENARIOS IS THAT THE RESIDENTIAL RATES ARE SUBSIDIZING COMMERCIAL RATES, SO THE RESIDENT'S EXPENSES FOR RESIDENTIAL SERVICES ARE ABOUT 50 50, A LITTLE MORE FOR RESIDENTIAL AND COMMERCIAL, BUT RESIDENTIAL REVENUES ACCOUNT FOR SIXTY FIVE PERCENT OF REVENUES. SO THE RESIDENTIAL REVENUES ARE MORE THAN THE RESIDENTIAL EXPENSES, WHILE THE COMMERCIAL REVENUES ARE LESS THAN THE COMMERCIAL EXPENSES.

SO THE RESIDENTS ARE BASICALLY SUBSIDIZING THE COMMERCIAL ACCOUNTS AT THIS POINT.

A SIXTY FIVE PERCENT RATE INCREASE TO THE COMMERCIAL RATES WOULD BASICALLY BRING THOSE REVENUES IN LINE WITH EXPENSES, SO THAT WOULD PROVIDE COSTS OF SERVICE, SO INCREASING COMMERCIAL RATES, SIXTY FIVE PERCENT WOULD EQUALIZE RESIDENTIAL RATES, WOULD COVER RESIDENTIAL EXPENSES AND COMMERCIAL RATES WOULD BE COVERING COMMERCIAL EXPENSES WITHOUT ANY SUBSIDY. SO YOU REALLY HAVE TWO BASIC OPTIONS GOING FORWARD FOR ADJUSTING THE RATES.

ONE IS TO SIMPLY CONTINUE TO INCREASE RESIDENTIAL COMMERCIAL RATES AT THE SAME AMOUNT OR

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DOING THAT IS CONSISTENT WITH PROP 2:18, AND AGAIN, IT WOULD ELIMINATE THE SUBSIDY THAT RESIDENTIAL ACCOUNTS ARE CURRENTLY PROVIDED TO THE COMMERCIAL SECTOR.

SO THOSE ARE THE TWO BASIC OPTIONS IN TERMS OF RATE ADJUSTMENTS.

THIS IS A SUMMARY OF THE FOUR RATE ADJUSTMENT SCENARIOS THAT WE LOOKED AT, THE FIRST TWO ARE REALLY, YOU KNOW, ADDRESSING THIS SIGNIFICANT ADDITIONAL FINANCIAL NEED IN THE SHORT TERM WITH A RATE ADJUSTMENT NEXT MARCH AND JULY, GETTING ALL THE ALL THE REVENUES UP TO WHERE THEY NEED TO BE AND THEN MOVING FORWARD, ROUGHLY FIVE PERCENT ANNUAL RATE ADJUSTMENTS GOING FORWARD FROM THAT POINT TO ACCOUNT FOR INCREASED COSTS AND INFLATION.

THE SECOND TO SPREAD THE ADDITIONAL RATE ADJUSTMENTS OVER A LARGER, LONGER PERIOD.

IN BOTH CASES, THE SCENARIO 1A IS WEEKLY RESIDENTIAL RECYCLING.

SCENARIO 2 A IS WEEKLY RECYCLING.

SCENARIO ONE B AND TWO B ARE BIWEEKLY RECYCLING THE BASIC IMPACT OF GOING FROM WEEKLY TO BIWEEKLY RECYCLING.

SO IF THE CITY DECIDED TO IMPLEMENT BIWEEKLY RECYCLING, IT BASICALLY ALLOWS YOU TO REDUCE THE INITIAL RATE ADJUSTMENT TO BOTH COMMERCIAL AND RESIDENTIAL RATES BY FIVE PERCENT.

SO YOU CAN SEE IN SCENARIO ONE, WE WOULD HAVE A 20 PERCENT RESIDENTIAL INCREASE IN MARCH AND A 10 PERCENT IN IN JULY.

SIXTY FIVE PERCENT COMMERCIAL RATE INCREASE IN MARCH TO BRING THOSE RATES UP TO THE COST OF SERVICE AND THEN A 30 PERCENT INCREASE IN JULY.

WITH BI WEEKLY RECYCLING, WE'RE ABLE TO REDUCE THAT INITIAL 20 PERCENT RESIDENTIAL INCREASE TO 15 PERCENT IN MARCH AND REDUCE THE JULY 30 PERCENT COMMERCIAL RATE INCREASE FROM 30 PERCENT TO TWENTY FIVE PERCENT.

SIMILARLY, WITH SCENARIO 2A AND 2B, THERE'S A 10 PERCENT INCREASE FOR RESIDENTIAL RATES IN MARCH AND 10 PERCENT IN JULY AND A 20 PERCENT FOR COMMERCIAL.

IF YOU GO TO BIWEEKLY IN SCENARIO 2B, WE'RE ABLE TO REDUCE THAT INITIAL 10 PERCENT RESIDENTIAL RATE INCREASE TO FIVE PERCENT AND THE JULY 20 PERCENT COMMERCIAL RATE INCREASE TO 15 PERCENT.

SO THESE ARE THE BASIC SCENARIOS THAT WE LOOKED AT.

THEY ALL BASICALLY GET YOU PRETTY MUCH TO THE SAME POINT.

NOT EXACTLY, BUT PRETTY, PRETTY CLOSE AT THE END OF THE FIVE YEAR PLANNING PERIOD.

SO AND AGAIN, THE OPERATING RESERVES THAT YOU HAVE NOW ALLOW YOU TO BE ABLE TO EXTEND THAT RATE ADJUSTMENT OVER AN EXTENDED PERIOD OF TIME IF YOU NEED TO OR CHOOSE TO.

SO THAT'S THAT COMPLETES, YOU KNOW, MY SUMMARY OF THE RATE ADJUSTMENTS BEFORE I GO ON TO DISCUSS THE POTENTIAL AND IMPACTS OF OUTSOURCING OPERATIONS, I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU. THANK YOU, MR. SEAN. ARE THERE ANY QUESTIONS FROM THE MEMBERS.

MAYOR PRO TEM? YES, FOR THE WEEKLY AND BIWEEKLY, THE BIWEEKLY IS ALSO INCLUDING THE THE FOOD BYPRODUCTS AND RESIDUES, RIGHT? YEAH. SO YOU THE CITY COLLECTS THE YARD WASTE NOW, AND THAT'S A WEEKLY SERVICE.

SO THE FOOD WASTE IS GOING TO GO INTO THE THE YARD WASTE CONTAINER THAT'S COLLECTED BY THE CITY. SO RECYCLING IS A SEPARATE AND ISN'T IMPACTED BY THE FOOD WASTE.

SO THE YOUR YOUR WEEKLY YARD WASTE PROGRAM WOULD CONTINUE TO BE WEEKLY.

THE RESIDENTS WOULD ADD THE FOOD WASTE TO THE YARD WASTE AND THAT WOULD SATISFY THIRTEEN EIGHTY THREE ON THE RESIDENTIAL SIDE.

SO FOR THE BIWEEKLY, THE FOOD WASTE IS STILL GOING AT A WEEKLY, WEEKLY RATE.

YES, THAT'S JUST FOR THE RECYCLABLES.

ALL RIGHT. THANK YOU, MR. MAYOR. THANK YOU.

ANDREW CORTEZ. I'LL RESERVE MY QUESTIONS FOR THE NEXT SEGMENT.

OK. UM, I WAS.

NO QUESTIONS, THANK YOU.

PLEASE PROCEED. SO LET'S JUST TALK A LITTLE BIT ABOUT THE POTENTIAL FOR OUTSOURCING COLLECTION SERVICES. I THINK THE FIRST POINT TO NOTE IS THAT THE DIVISION IS DOING A GOOD JOB WITH THEIR AVAILABLE RESOURCES.

THE ISSUE IS, YOU KNOW, ADDITIONAL COSTS AND EXPENSES ARE NEEDED, NEW TRUCKS.

THERE'S A LOT OF CHANGES TO THE INDUSTRY, WITH THIRTEEN EIGHTY THREE CONTAMINATION MONITORING CAMERAS.

THERE'S A LOT OF ADDITIONAL RESOURCES THAT ARE GOING TO BE NEEDED TO COMPLY WITH THIRTEEN EIGHTY THREE AND GET THE DIVISION'S OPERATIONS UP TO WHERE THEY NEED TO BE THE.

RIGHT NOW, THERE'S MORE THAN 500 INCORPORATED CITIES AND COUNTIES IN THE STATE.

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SO IT ISN'T UNCOMMON BUT IS BECOMING LESS COMMON.

AND IT IS MUCH MORE COMMON THAT RESIDENTIAL COMMERCIAL COLLECTION SERVICES ARE HANDLED BY THE PRIVATE SECTOR THROUGHOUT THE STATE.

YOU KNOW, THE GREATEST ADVANTAGE PROBABLY OF MAINTAINING THOSE OPERATIONS IN HOUSES YOU HAVE CONTROL, YOU CONTROL THE TRUCKS, YOU CONTROL CUSTOMER SERVICE, YOU NEED SOMETHING THAT DONE IMMEDIATELY.

YOU DON'T HAVE TO WORK THROUGH A CONTRACTOR.

BUT WITH THAT CONTROL ALSO COMES TOTAL RESPONSIBILITY FOR THE SAFETY, FINANCIAL IMPACTS AND REGULATORY COMPLIANCE, WHICH IS A LITTLE BIT BIGGER NOW THAT THIRTEEN EIGHTY THREE IS COMING INTO PLACE.

SO THE OTHER THING YOU KNOW, AGAIN, I WANT TO EMPHASIZE THAT THE DIVISION IS DOING A GOOD JOB. IT ISN'T THE ISSUE.

THE FINANCES AREN'T A QUESTION OF THE DIVISION'S PERFORMANCE.

IT'S JUST, YOU KNOW, IT'S TOUGH OPERATING THE MUNICIPAL OPERATION, ESPECIALLY A SMALL OPERATION. YOU DON'T HAVE ECONOMIES OF SCALE, YOU DON'T HAVE A CORPORATE ENTITY BEING ABLE TO HELP WITH SAFETY AND TIME.

SO IT'S VERY DIFFICULT AND AND YOU DON'T HAVE THE ECONOMIES OF SCALE.

SO THAT IMPACTS THE FINANCES.

AS SUCH, OUTSOURCING THOSE OPERATIONS TO THE PRIVATE SECTOR MAY MAY RESULT IN FINANCIAL BENEFITS. BUT THERE'S THERE'S SOME ISSUES AND THINGS THAT NEED TO BE LOOKED AT TO CONFIRM WHETHER OR NOT THERE WOULD BE FINANCIAL BENEFIT.

OK, IN TERMS OF POTENTIALLY OUTSOURCING, YOU KNOW, YOU'RE CURRENTLY NEGOTIATING AN AGREEMENT WITH AMERICAN REFUSE TO PROVIDE THE REQUIRED RESIDENTIAL RECYCLING AND COMMERCIAL RECYCLING ORGANIC SERVICES.

SO AMERICAN REFUSE IS GOING TO BE HERE.

THERE ALREADY ARE HERE, BUT THEY'RE GOING TO EVEN HAVE A MORE SIGNIFICANT PRESENCE GOING FORWARD, WHETHER YOU OUTSOURCE OR NOT.

SO IF I'M IF YOU DECIDE TO OUTSOURCE, THERE MAY BE LIMITED INTEREST FROM THE OTHER COMMERCIAL HAULERS IN THE AREA BECAUSE AMERICAN REFUSE HERE AND IT MAY BE VIEWED BY THEM THAT THEY HAVE IT IN.

CERTAINLY, THEY HAVE, YOU KNOW, SOME SOME BENEFIT OF BEING, YOU KNOW, A PARTY THAT'S ALREADY OPERATING IN THE CITY.

SO IT'S IT'S NOT CLEAR THAT THERE WOULD BE A SIGNIFICANT INTEREST FROM OTHER PARTIES TO BID ON A CITY FRANCHISE IF ONE WERE OFFERED.

THE ONLY WAY TO KNOW THAT, THOUGH, IS TO ISSUE A REQUEST FOR PROPOSALS.

BUT BECAUSE AMERICAN REFUSE IS HERE AS WELL, YOU KNOW, THERE'S SOME ADVANTAGES TO THEM TAKING OVER ALL OF THE OPERATIONS AGAIN, ECONOMIES OF SCALE.

YOU DON'T HAVE YOU'RE NOT GOING TO HAVE TWO DIFFERENT COMMERCIAL OPERATORS, YOU KNOW, COLLECTING SERVICES, WHICH CAN BE AN ISSUE.

SO THERE ARE ADVANTAGES TO HAVE AN AMERICAN REFUSE IF YOU OUTSOURCE AS THE THE FRANCHISEE. BUT AGAIN, YOU COULD GO OUT TO BID AND AND SOLICIT PROPOSALS FROM OTHER SERVICE PROVIDERS AS WELL, REALIZING AGAIN, AMERICAN REFUSE ARE STILL GOING TO HAVE THEIR RESIDENTIAL RECYCLING AND COMMERCIAL ORGANICS AND COMMERCIAL RECYCLING.

SO YOU HAVE TWO DIFFERENT OPERATORS, AT LEAST FOR A PERIOD OF TIME.

IF YOU DO OUTSOURCE, WHILE MANY CITY COSTS WOULD GO AWAY, NOT ALL OF THEM WOULD GO AWAY.

YOU'RE GOING TO CONTINUE AS I UNDERSTAND YOU CONTINUE TO KEEP STREET SWEEPING, YOU'VE GOT SP THIRTEEN EIGHTY THREE COMPLIANCE COSTS.

THERE MAY BE CERTAIN STAFF THAT YOU WOULD CONTINUE TO KEEP ON WITHIN THE CITY.

NOT ALL POSITIONS MAY BE ELIMINATED.

YOU KNOW, ALSO WITH VEHICLE MAINTENANCE, OBVIOUSLY, THAT A LOT OF THE VEHICLE MAINTENANCE COSTS GO AWAY.

BUT WOULD ALL OF THE VEHICLE MECHANIC POSITIONS BE ELIMINATED? SO IF YOU DO WANT TO PURSUE OUTSOURCING, FURTHER, LOOK AT THE ECONOMIC IMPACTS.

A MORE DETAILED ANALYSIS OF WHAT COSTS WOULD NOT GO AWAY WITH OUTSOURCING NEED TO BE CONSIDERED, SO YOU CAN ADD THOSE COSTS TO WHATEVER PROPOSALS YOU GET FROM THE PRIVATE SECTOR TO UNDERSTAND THE TRUE TOTAL IMPACT TO THE CITY.

AND I GUESS FINALLY, PERHAPS THE MOST SIGNIFICANT POINT OF OUTSOURCING IS IS ANY CONSIDERATION OF DOING SO NEEDS TO ADDRESS WHAT'S GOING TO HAPPEN TO THE CITY EMPLOYEES WHOSE JOBS ARE IMPACTED.

IF THE DIVISION'S OPERATIONS ARE OUTSOURCED, OUTSOURCED, WE STRONGLY RECOMMEND THAT THE SELECTED CONTRACTOR BE REQUIRED TO HIRE ANY QUALIFIED CITY STAFF THAT THAT ARE DISPLACED, PROVIDE MEDICAL, DENTAL AND 401K BENEFITS, MAINTAIN ANY FORMER SENIORITY LEVELS AND ANY PLANNED VACATION TIME.

AND ALSO, YOU KNOW, IT DOESN'T HAPPEN OFTEN THAT SERVICES ARE OUTSOURCED, A LITTLE SHAFT ARE JUST OUTSOURCED, AND WE'LL TALK ABOUT THAT JUST A MINUTE.

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AND IN THE CITY OF HEMET, THERE WAS A RETENTION BONUS.

SO ANY OF THE CITY EMPLOYEES THAT REMAINED EMPLOYED AFTER A PERIOD OF YEARS OR MONTHS GOT A I BELIEVE IT WAS A THOUSAND OR $2000 BONUS.

SO THERE'S THERE'S A NUMBER OF THINGS THAT YOU CAN DO TO HELP EASE THE IMPACT ON ANY DISPLACED CITY EMPLOYEES.

BUT, YOU KNOW, I THINK THEIR THEIR WELLBEING NEEDS TO BE, YOU KNOW, FOREMOST IN ANY CONSIDERATION OF OUTSOURCING.

AS I JUST MENTIONED, THE CITY OF SHAFTER JUST OUTSOURCED THEIR OPERATIONS, PUT OUT A BID FOR SERVICES IN THE CORE RESIDENTIAL AREA OF THE CITY, WHICH AMERICAN REFUSE WON.

IT'S A THREE PART SYSTEM, THE CONTRACT BEGINS IN MARCH OF THIS YEAR.

THE MONTHLY RESIDENTIAL RATE IS $27 AND 16 CENTS.

TWENTY THREE DOLLARS AND NINE CENTS OF THAT IS PAYMENT TO AMERICAN REFUSE.

THE OTHER 15 PERCENT, A LITTLE MORE THAN $4, IS A FRANCHISE FEE THAT GOES TO THE CITY SO THAT TWENTY SEVEN DOLLARS AND 16 CENT RATE PER MONTH COMPARES TO THE CITY'S CURRENT RATE, WHICH IS ABOUT A DOLLAR HIGHER.

TWENTY EIGHT DOLLARS AND 12 CENTS OBVIOUSLY DOESN'T INCLUDE A FRANCHISE FEE AS WELL, SO.

YOU'D ALSO HAVE TO LOOK AT THE COMMERCIAL END OF THINGS TO GET A FULL UNDERSTANDING OF OF THE IMPACT ON THE ON THE RATES.

AND AGAIN, ALSO FACTOR IN THE COST FROM THE CITY THAT WOULD NOT GO AWAY WITHOUT SOURCING THAT SERVICE IN SHAFTER ALSO INCLUDES UNLIMITED BULKY ITEM COLLECTION.

SO I BELIEVE RESIDENTS CAN PUT OUT BULKY ITEMS ON A WEEKLY BASIS, WHICH IS A HIGH LEVEL OF SERVICE AS WELL.

AND THE CITY WOULD CONTINUE TO BUILD BUILD CUSTOMERS UNDER THAT CONTRACT.

SO THE POTENTIAL NEXT STEPS.

ONE OPTION IS TO CONTINUE TO MOVE FORWARD AS YOU ARE CURRENTLY NOW NEGOTIATING YOUR RESIDENTIAL RECYCLING AND COMMERCIAL RECYCLING AND COMMERCIAL ORGANIC SERVICE WITH AMERICAN, REFUSE GETTING THOSE SERVICES IN PLACE AND THEN ADDRESS THE RATE ADJUSTMENTS NEEDED FOR THE SOLID WASTE ENTERPRISE FUND TO BE MADE WHOLE.

UH, THAT'S THE FIRST OPTION, THE SECOND OPTION IS TO IS TO LOOK FURTHER INTO THE POTENTIAL FOR OUTSOURCING THOSE OPERATIONS IN AMERICAN REFUSE IF YOU DECIDED TO SOLE SOURCE TO THEM, TAKE OVER ALL OF THE CITY'S OPERATIONS.

THE AGAIN, IF YOU DO DECIDE TO OUTSOURCE, YOU NEED TO DO A MUCH MORE DETAILED ANALYSIS OF WHAT COSTS WOULD NOT GO AWAY AND WOULD REMAIN WITH THE CITY, SO YOU HAVE A FULL UNDERSTANDING OF THE FINANCIAL IMPACT TO THE CITY.

BUT IF YOU DO DECIDE TO GO FORWARD AND OUR RECOMMENDATION AT LEAST TO CONSIDER OUTSOURCING, YOU DON'T HAVE TO MAKE A DECISION, OBVIOUSLY AT THIS POINT.

BUT WE WOULD RECOMMEND YOU REQUEST A PROPOSAL FROM AMERICAN REFUSE TO TAKE OVER ALL OPERATIONS AND THEN BASED ON YOUR REVIEW OF THAT PROPOSAL, THE PROPOSED RATES AND WHAT CITY COSTS WOULD NOT GO AWAY, YOU'D HAVE A A FULL UNDERSTANDING OF THE FINANCIAL IMPACT OF THE CITY AND THE RATEPAYERS.

BASED ON THAT, YOU COULD DECIDE TO ENTER INTO SOURCE NEGOTIATIONS WITH AMERICAN REFUSE OR CONDUCT A COMPETITIVE PROCUREMENT AND SEE IF THERE ARE OTHERS OUT THERE THAT ARE INTERESTED OR AT THAT POINT, JUST DECIDE THAT YOU'RE GOING TO MAINTAIN MUNICIPAL OPERATIONS AND MOVE FORWARD WITH THE FIRST OPTION THAT'S LISTED ABOVE.

SO WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE.

THANK YOU, MR. SEAN. MAYOR PRO TEM? NO QUESTION. THANK YOU.

SO YOU'RE DID YOU DID YOUR REPORT EVALUATE THE EFFICIENCY OF OUR DEPARTMENT SANITATION DEPARTMENT IN REGARDS TO THE REFUSE COLLECTION? WE WE DID A REVIEW OF THAT OPERATIONS SEVERAL YEARS AGO, AND AS PART OF THIS, THIS REVIEW, WE DID A HIGH LEVEL UPDATE OF THAT, IF YOU WILL.

THE CITY'S OPERATIONS ARE UNIQUE IN A COUPLE OF RESPECTS.

THE RESIDENTIAL DRIVERS, YOU KNOW, WORK FIVE EIGHT HOUR DAYS, BUT LARGELY DON'T DO ANY COLLECTION OF GARBAGE ON WEDNESDAY.

THEY DO OTHER NON SOLID WASTE RELATED TASKS.

SOME ARE SOLID WASTE CLEANING ALLEYS, BUT BUT THEY'RE NOT OUT THERE COLLECTING GARBAGE FIVE DAYS A WEEK, WHICH IS I DON'T KNOW OF ANY OTHER CITY THAT OPERATES THAT WAY.

ALSO, YOU HAVE COMMERCIAL SIDELOADING VEHICLES WHICH COLLECT COMMERCIAL TRASH WITH FROM

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AND THERE ARE SOME REAL LIMITATIONS OF THAT IN TERMS OF ECONOMIES OF SCALE AND EFFICIENCIES. YOU'RE LIMITED IN TERMS OF THE SIZE OF CONTAINERS THAT COLLECT AND THEREFORE THE FREQUENCY AND THE EFFICIENCY OF COLLECTION IS IMPACTED.

SO AGAIN, OUR REVIEW LAST TIME WAS MORE DETAILED.

WHAT WE FOUND AGAIN WAS THAT THE STAFF IS DOING A GOOD JOB WITH THEIR AVAILABLE RESOURCES, BUT YOU'RE THE STRUCTURE OF YOUR COLLECTION SYSTEM WITH WEDNESDAY BASICALLY PAIN FOR DRIVERS, BUT NOT HAVING THEM OPERATE AND HAVING THOSE EXPENSIVE TRUCKS SITTING ON THE SIDELINES FOR 20 PERCENT OF THE TIME IS IS NOT AN INDUSTRY STANDARD.

AND IF YOU WERE TO START ALL OVER AGAIN, YOU KNOW, CERTAINLY I DON'T THINK YOU WOULD GO THAT ROUTE. AND ALSO, YOU KNOW, AGAIN, IF THERE'S A CLEAN SLATE, THE INDUSTRY STANDARD, THE MOST EFFICIENT COLLECTION SYSTEM WHERE IT CAN BE IMPLEMENTED ON THE COMMERCIAL SIDE AS A FRONT LOAD OF VEHICLES.

SO YOU'VE GOT CHALLENGES AND YOU KNOW, ALL THOSE THINGS COULD BE CHANGED.

IT'S NOT A SIMPLE CHANGE, NECESSARILY.

I MEAN, THERE'S THIS THINGS INVOLVED, BUT IF YOU DO OUTSOURCE, YOU KNOW, THE A REQUIREMENT OF THAT COULD BE TO PUT IN PLACE FRONT LOADING VEHICLES AND A FIVE DAY COLLECTION SYSTEM SCHEDULE.

HE REFERRED YOU, REFERRED TO ECONOMIES OF SCALE, WHICH I'M FAMILIAR WITH THE TERM.

BUT I THINK THE CITY ITSELF HAS ITS OWN ECONOMY OF A SCALE.

I MEAN, WHEN YOU'RE TALKING ABOUT AN HR DEPARTMENT, YOU'RE TALKING ABOUT PAYROLL BILLING.

THERE'S THERE IS AN ECONOMY OF SCALE HERE AS WELL.

YOU CONSIDER THAT THE PRIVATE ENTERPRISE, THEY HAVE A AN EDGE WHEN IT COMES TO THE ECONOMY OF SCALE BECAUSE YOU SAID THEY WERE, THEY WOULD HAVE ECONOMIES SCALE.

YEAH. WELL, AGAIN, YOU KNOW, THE THE LARGER THE CORPORATION, THE MORE ECONOMIES THERE ARE. YOU DEVELOP AN SP THIRTEEN EIGHTY THREE PLAN FOR A JURISDICTION A YOU CAN TAILOR IT TO JURISDICTION B YOUR SAFETY PROGRAM CAN BE CORPORATE WIDE, YOUR MAINTENANCE PROGRAM, POLICIES AND PROCEDURES.

YOU KNOW, PERHAPS THE BIGGEST LIMITING FACTOR IF I'M A SOLID WASTE PRIVATE, SOLID WASTE OPERATOR AND I NEED MY TRUCK FIX, THE SOLID WASTE OPERATION DRIVES THE MAINTENANCE.

GET IT DONE, YOU KNOW, WHEREAS ON THE ON THE CITY SIDE, OFTEN IT'S NOT QUITE THAT, YOU KNOW, THE THE MAINTENANCE IS A LITTLE MORE INDEPENDENT.

THEY'VE GOT OTHER, YOU KNOW, THEY GOT POLICE AND FIRE TO DEAL WITH.

SO IT'S IT'S THEY DON'T HAVE DIRECT CONTROL OVER MAINTENANCE, TYPICALLY OVER SAFETY AND OVER BILLING AND CUSTOMER SERVICE, SIMILAR TO THE WAY THE PRIVATE SECTOR DOES WHERE ALL OF THOSE ARE BASICALLY DRIVEN BY THE SOLID WASTE DIRECTOR AND SUPPORT SERVICES RATHER THAN IN A MUNICIPAL SETTING.

THEY THEY HAVE BROADER CITYWIDE RESPONSIBILITIES.

SO WHILE GARBAGE IS AN IMPORTANT ASPECT OF IT, IT ISN'T THE NUMBER ONE PRIORITY THAT YOU SEE ON THE PRIVATE SIDE, WHERE IT'S IT'S ALL SOLID WASTE RELATED AND I KNOW WE DON'T HAVE WE DON'T HAVE THE RESPONSIBILITY OF FIRE OR ANY OTHER SERVICES, SO WE'RE OK THERE.

WE HAVE AUTO MECHANICS RIGHT NOW.

WHAT PERCENTAGE OF THAT WORK IS OUTSOURCED WHEN IT COMES TO TRASH TRUCK SANITATION? AND WE'VE GOT THE TWO GENTLEMEN THAT CAN ANSWER THAT QUESTION, RIGHT? RIGHT. I'M SCOTT BENNETT, AND I WOULD SAY THAT NOT ENOUGH BECAUSE THEY DO HAVE THE REST OF THE FLEET OF ALL THE PICKUPS, ALL THE CARS AND EVERYTHING, AND THAT'S ACTUALLY A MAINTENANCE FACILITY.

MM HMM. SO A LOT OF LARGE TICKET ITEMS LIKE A TRANSMISSION OR SOMETHING LIKE THAT OR HEAD MECHANIC HAS TO PRIORITIZE AND DO SOME TRIAGE ON THE OKAY.

YOU KNOW, I NEED TO GET THAT OUT WHILE I CAN TAKE CARE OF THESE OTHER JOBS, LIKE, HE'S WILLIAM SAYING, HELLO, WILLIAM.

THEY ALSO THEY HAVE THE ABILITY TO DO THOSE SMALL JOBS AND GET THEM OUT OF THE WAY TO WHERE AS AS SOON AS WE CAN GET IT OUT, THEN WE'RE OUR ARE.

WE'VE LOST THE CONTROL AND WE'RE AT THE BECK AND CALL OF THE MECHANICS WE TOOK IT TO.

WE HAVE REYNA SITUATIONS WHERE IT'S TAKEN QUITE A WHILE TO GET A HYDRAULIC RAM FIX FOR THE LEAK OR SOMETHING, RIGHT? TYPICALLY, THOSE ARE LARGER REPAIRS, I ASSUME, BUT WE DO HAVE A FAIR AMOUNT OF CONTROL OVER REPAIRS WITHIN OUR MAINTENANCE FACILITY.

YES, WE DO. AND I WOULD JUST ADD ONE THING ALONG WITH EVERYTHING ELSE THAT WE'RE IN BRINGING OUT THE TOWN'S GROWING.

AND, YOU KNOW, WE MIGHT NEED ANOTHER MECHANIC.

I MEAN, YOU KNOW WHAT I MEAN THAT ALWAYS WE'RE WE'RE ON THAT LINE WHERE PERSONNEL IS GOING TO BECOME AN ISSUE FOR DRIVERS AND MECHANICS.

THANK YOU. SO I WANTED TO MAKE SURE WE CLARIFY, I KNOW ON OUR REPRESENTATION AND SOME OF

[00:30:02]

SO I JUST WANT BECAUSE SOME OF THE GRAPHS, I THINK WHEN I REFERRED TO THE INCREASES, SIX FIVE PERCENT INCREASES AS WEEKLY RESIDENTIAL RECYCLING.

I'LL MAKE SURE WE UNDERSTAND THAT'S NOT JUST LIKE A BLUE CAN OR GREEN CAN.

IT'S ACTUALLY THE HOUSEHOLD WASTE.

IT'S A THREE PART SYSTEM, RIGHT? THREE PARTS ELECTRONICS. SURE, WE'RE ON, INCLUDING OUR GENERAL, OUR REGULAR SANITATION.

ONE OF MY BIGGEST CONCERNS AND THE SUBJECT OF OUTSOURCING HAS COME UP FOR AS LONG AS I'VE BEEN HERE 17 YEARS.

IT'S A GREAT IDEA.

IT'S I BELIEVE THAT THE PRIVATE SECTOR WOULD PROBABLY DO IT CHEAPER, BUT AT THE SAME POINT IN TIME, WE ARE GIVING UP THAT CONTROL SOMETHING THAT WE HAVE DEBATED HERE FOR YEARS. WE OUTSOURCE OUR CURRENT COUNTY SHERIFF'S CONTRACT AND WE OUTSOURCE THE FIRE DEPARTMENT AND WE ALL KNOW WHAT HAS HAPPENED RECENTLY WITH THOSE COPS.

THEY SKYROCKETED BALLOON.

AT THAT POINT, WE ARE AT THE MERCY OF THE VENDOR.

AND SO TO SAY THAT, WE CAN SAY, OH, YOU KNOW, WE'LL WE'LL CANCEL OUR CONTRACT AND WE'LL START PICKING UP WASTE AGAIN, THAT'S PROBABLY NEVER GOING TO HAPPEN ONCE WE LET IT GO.

SO IT'S A BIG DECISION AND IT FALLS UPON OUR SHOULDERS TO MAKE THAT DECISION.

BUT I REALLY DO SEE IT AS ONCE WE GO THAT WAY, IF WE GO THAT WAY, WE'RE NEVER GOING TO BE ABLE TO COME BACK OR AFFORD TO COME BACK.

WE'RE STILL TALKING ABOUT TRYING TO GET ENOUGH FUNDS TO START A POLICE DEPARTMENT.

YOU KNOW, I JUST DON'T SEE IT HAPPENING.

SO THAT'S SOMETHING THAT NEEDS TO BE TAKEN INTO CONSIDERATION.

AND OF COURSE, OUR EMPLOYEES, OBVIOUSLY, I NEED TO MAKE SURE THAT OUR RESIDENTS TAX DOLLARS ARE SPENT EFFICIENTLY.

BUT AT THE SAME POINT IN TIME, I CAN'T MAKE THE DECISION OVER A ONE YEAR OR FIVE YEAR PROJECTION. I'VE GOT TO LOOK AT THE LONG RUN.

AT WHAT POINT WILL OUR COST SAVINGS? NOT BE REALIZED ON AN ANNUAL BASIS BECAUSE WE'RE OUTSOURCING, SO A LOT OF THINGS I HAVE TO CONSIDER, THOSE THINGS WE NEED TO LOOK AT AND LIKE, SAY, I'M NOT WORRIED ABOUT NEXT YEAR. YEAH, IT SOUNDS GREAT TO MAKE SURE WE DON'T.

WE OUTSOURCE. WE MAY NOT HAVE TO INCREASE THE REFUGE RATES, BUT WHAT HAPPENS A YEAR, FIVE YEAR, 10 YEAR, 15 OR 20? SO AGAIN, JUST THINGS I NEED, I NEED TO THINK ABOUT AND LOOK AT.

THE ONE THING THAT THAT CONCERNED ME.

AND MAYBE STAFF CAN SHED SOME LIGHT IS THE PRISON CONTRACT THAT WAS BROUGHT INTO THEIR SUPPORT AS WELL. SO I BELIEVE THE REPORT SAID THAT WE ARE PROBABLY LOSING MONEY ON THE PRISON CONTRACT IS THAT.

I READ THAT. I THINK I READ THAT SOMEWHERE.

I'M SURE. YEAH. BECAUSE THE YOU KNOW, YOUR YOUR $900000 BEHIND CURRENTLY AND YOU NEED TO INCREASE THE COMMERCIAL AND RESIDENTIAL IS SUBSIDIZING COMMERCIAL.

SO, YOU KNOW, ASSUMING THE SERVICES, THE EFFICIENCIES ARE THE SAME.

THE PRISON IS A LITTLE IS A DIFFERENT OPERATION.

I DON'T KNOW IF IT'S MORE EFFICIENT OR LESS EFFICIENT.

YOU COULD IMAGINE IT COULD BE A LITTLE MORE EFFICIENT, SO IT MIGHT COST A LITTLE BIT LESS, BUT NOT SO MUCH THAT IT'S GOING TO VARY THAT MUCH FROM COMMERCIAL THAT, YOU KNOW, IT'S NOT GOING TO REQUIRE A SIGNIFICANT RATE INCREASE ALONG WITH THE OTHER COMMERCIAL OPERATION TO GET IT TO THE TO THE COST OF TRUE COST.

AND YOU'RE NOT ABLE TO.

YOU'VE GOT A CONTRACT FOR THAT.

SO YOU'RE NOT ABLE TO INCREASE THAT BY SIXTY FIVE PERCENT.

SO YOU'VE GOT SORT OF A CPI, I THINK PRETTY MUCH SO.

I THINK YOU HAVE A CONTRACT.

I THINK IT MAY TERMINATE IN A YEAR OR TWO.

WE JUST RENEW YOUR CONTRACT, IF I'M NOT MISTAKEN, WHEN IT DOES.

YOU SHOULD JUST LOOK AT WHAT THE TRUE COST IS AND MAKE SURE YOU'RE COMFORTABLE WITH WHAT THAT RATE IS THAT YOU NEGOTIATE IF YOU DECIDE TO GO.

AND I THINK WE HAD ISSUES NEGOTIATING THE LAST CONTRACT, IF I'M NOT MISTAKEN TO TRY TO GET TO SOMETHING THAT WAS ACCEPTABLE FOR THE CITY.

SO I DON'T HAVE HIGH EXPECTATIONS WHERE THE STATE WOULD JUST ACQUIESCE TO WHAT WHAT OUR NEW RATES WILL BE. SO.

BUT THOSE ARE MY QUESTIONS SO FAR.

I MAY HAVE SOME MORE LATER, BUT THAT'S WHAT STUFF I COULD JUST, YOU KNOW, IN TERMS OF RATES TYPICALLY AND WHAT WE WOULD RECOMMEND IN THE CONTRACT.

AND I THINK IT MAY EVEN BE IN YOUR CONTRACT WITH AMERICAN REFUSE NOW IS THEY PROPOSE THEIR RATES. AND THERE'S THEN THERE'S A SPECIFIC RATE ADJUSTMENT METHODOLOGY THAT'S OFTEN TIED TO A SERIES OF INDICES.

IT USED TO BE A CPI.

NOW IT'S, YOU KNOW, TYPICALLY A LITTLE MORE DETAILED.

AND UNLESS UNLESS THERE'S A CHANGE IN LAW OR A CHANGE IN SERVICES, YOU KNOW, THAT'S THE WAY THE RATES ARE GOING TO GET ADJUSTED.

IF OBVIOUSLY, IF SERVICES CHANGE OR THE CHANGE IN LAW, THERE HAS TO BE AN ADJUSTMENT.

BUT THAT'S THE THAT'S THE STANDARD FOR HOW PRIVATE OPERATIONS ARE CONTROLLED IN TERMS OF,

[00:35:07]

SO THAT'S THAT'S HOW YOU WOULD HAVE CONTROL OVER THAT.

MS. MR. GARCIA. WELL, I MEAN, I HAVE SOME INITIAL THOUGHTS.

YOU KNOW, SOME MORE IMPORTANT THAN HOW A SIDE LOADER IS BETTER OR HOW A FRONT LOADER BETTER THAN A SIDE LOADER WHEN YOU HAVE THEM PARKED ON ON A SIDEWALK.

BUT I DO UNDERSTAND THAT THIS OVERALL SHORTFALL DOESN'T NEED TO BE ADDRESSED AND NEEDS TO BE BALANCED OUT. AND FOR A LONG TIME, THE RESIDENTS HAVE BEEN REALLY SUBSIDIZING AND FOOTING THE BILL FOR THIS SHORTFALL.

THIS IS A VERY BIG DECISION AS MY COLLEAGUE BRINGS UP, AND THERE'S A LOT OF INFORMATION TO TAKE IN AS IT AS IT'S DESCRIBED AS A HIGH LEVEL OF ASSESSMENT.

THERE'S A LOT OF OTHER CONCERNS OR COSTS THAT I LOVE TO REALLY SEE BEFORE WE KIND OF COMPLETELY HEAD IN ONE DIRECTION OR ANOTHER.

DEFINITELY WHAT THOSE ONGOING LONG TERM COSTS WOULD BE TO THE CITY AND THEN CERTAINLY WHAT WOULD BECOME OF THE PRISON CONTRACT, AT LEAST WHAT THAT CAN POTENTIALLY LOOK LIKE, RIGHT? THERE'S PLUSES AND MINUSES ARE THE PROS AND CONS TO BOTH OF THESE DECISIONS.

AND I'M SPEAKING TO THE RESIDENTS RIGHT NOW.

THIS IS GOING TO BE A DIFFICULT DECISION AND I JUST ENCOURAGE EVERYONE TO HELP US MAKE THAT. UM, I DON'T IMAGINE WE'RE GOING TO MAKE EVERYONE HAPPY.

BUT WE WERE GOING TO MAKE THIS DECISION.

THAT'S DIFFICULT. AND I JUST WANT TO ECHO THE MEMBER'S CORTEZ MS. COMMENTS. AND THAT'S BEING THAT.

I REALLY NEEDED SOME MORE INFORMATION.

IT SOUNDS ATTRACTIVE IN SOME WAYS.

IN SOME WAYS IT DOESN'T.

BUT MOST IMPORTANTLY, HE BROUGHT UP A REALLY IMPORTANT POINT.

IT'S NOT GOING TO BE EASY TO HIT, RESET OR UNDO.

WE CAN'T HIT CONTROL Z AND THEN GO BACK, YOU KNOW? BUT DO YOU HAVE ANY QUESTIONS, ESPECIALLY ON THE QUESTIONS? THE WELL, NO.

I THINK I'LL JUST REFER SOME SPECIFICS TO TO AFTER THE MEETING.

THANK YOU. OK, THANK YOU.

YOU SAID THAT CHAPTER WAS TWENTY SEVEN DOLLARS AND SOME CHANGE FOR THEIR MONTHLY FEES.

SO I DON'T KNOW IF YOU KNOW THE ANSWER TO THIS.

SO IN 2026, WHAT WILL THEIR RATE BE FOR THE CITY OF SHAFFNER? YOU KNOW WHAT THE RATE ADJUSTMENT IS? TWENTY SIX. YEAH, BECAUSE THAT'S WHERE OUR PROJECTIONS GO OUT TO IS JULY 1ST.

TWENTY TWENTY SIX. I'M JUST TRYING TO GET A BALLPARK OF WHAT THE DIFFERENCE WOULD BE.

I CAN TELL YOU RIGHT NOW YOU'RE PROBABLY THINKING, OK.

I MEAN, DO YOU KNOW, LIKE NEXT YEAR, IS THERE A FIVE PERCENT INCREASE, A THREE PERCENT INCREASE? OR IF YOU GUYS EVEN COME TO THE PODIUM? NO, YES, YES.

PLEASE COME TO THE PODIUM.

THANK YOU. AND IF YOU COULD JUST SAY YOUR NAME.

JEFF MARTIN AMERICAN REFUGE 13 16 J STREET, WASCO.

IT'S BASED ON, YOU KNOW, CPI OR INFLATION.

SO, YOU KNOW, IT'S REALLY HARD FOR ME TO KIND OF PREDICT THE INFLATION, RIGHT? IF WE LOOK AT THE METHOD THAT WE'RE TRYING TO USE AND ALL OF OUR CONTRACTS RIGHT NOW IS KIND OF A WASTE BASED METHOD THAT THAT TAILORS TO OUR INDUSTRY.

SO IT TAKES INTO CONSIDERATION THE FUEL IN THE LABOR AND THE EQUIPMENT.

TYPICALLY, WHEN WE LOOK AT LIKE A FIVE YEAR PLAN, WE'RE RIGHT AROUND TWO AND A HALF PERCENT IS WHAT WE'VE SEEN PER YEAR.

SO JUST OFF THE HIP, YOU KNOW, IT'LL PROBABLY BE A LITTLE NORTH OF 30 DOLLARS A MONTH SOMEWHERE RIGHT THERE. BUT I CAN.

I THINK I SENT SOME STUFF OVER YESTERDAY THAT KIND OF ROUNDED.

GOT ITS ARMS AROUND IT, BUT I DON'T HAVE IT WITH ME RIGHT NOW.

OK, THANK YOU.

BECAUSE MY CONCERN IS IS WE'RE LOOKING AT TWENTY TWENTY SIX BEING SOMEWHERE AROUND FORTY THREE TO FORTY SEVEN DOLLARS.

SO I MEAN, IF WE WERE AT $30, THAT'S A SIGNIFICANT SAVINGS FOR OUR RESIDENTS.

AND ALTHOUGH MY I DON'T SAY MY NUMBER ONE CONCERN, BUT I CERTAINLY LIKE THE OTHER MEMBERS, OUR EMPLOYEES ARE DEFINITELY A PRIORITY.

BUT ALSO GIVEN THAT WE ARE A LOW INCOME COMMUNITY, THAT 15 TO 17 DOLLARS MATTERS TO A LOT OF OUR OUR RESIDENTS.

SO THAT WAS MY QUESTION.

THANK YOU, MR. MAYOR. THANK YOU.

THIS IS OBVIOUSLY A DIFFICULT DECISION TO MAKE, AND I THINK IN ORDER FOR THAT DECISION TO BE MADE INFORMED, MORE INFORMED.

I THINK WE NEED TO HAVE FURTHER INFORMATION.

THAT'S MY TAKE ON IT.

MR SEAN, YOU MENTIONED THAT WE WOULD NEED TO DO A FURTHER STUDY TO TO GET, YOU KNOW, MORE INFORMATION IF WE DECIDE TO GO THE PRIVATE SECTOR ROUTE.

I HAVE THE SAME MISGIVINGS ABOUT DOING SO BECAUSE ONCE YOU LEAVE IT THEN THERE'S NO WAY

[00:40:09]

YOU KNOW, AND I DON'T I DON'T REMEMBER WHAT THOSE WERE, BUT THERE WERE SOME MAJOR ISSUES THAT THEY WERE HAVING.

AND CERTAINLY, WE DON'T WANT TO FIND OURSELVES IN A SITUATION LIKE THAT.

SO MY PROPOSAL WOULD BE THAT WE DO THE STUDY AND THAT WE HAVE MORE INFORMATION TO ALLOW US TO MAKE A MORE INFORMED DECISION.

AND I DON'T KNOW HOW THE OTHER MEMBERS FEEL ABOUT THAT.

I AGREE. GO AHEAD.

WHAT'S STUDY ARE WE LOOKING SPECIFICALLY WHAT STUDY ARE WE LOOKING AT? WHAT THE BENEFITS WOULD BE BECAUSE HE DID MENTION MR. JOHN MENTIONED THAT, YOU KNOW, WE NEED TO ACTUALLY LEARN WHAT COSTS WILL GO AWAY AND WHAT COSTS WILL NOT GO AWAY BASED ON THAT DECISION THAT WE WOULD MAKE TO GO THE PRIVATE SECTOR ROUTE. AND I THINK THAT'S VERY, VERY IMPORTANT BECAUSE WE CAN SIT HERE AND ASSUME THAT WE'RE GOING TO BE SAVING, YOU KNOW, 20 OR, EXCUSE ME, 15 DOLLARS, 10 OR 15 DOLLARS FIVE YEARS FROM NOW. BUT THAT MAY NOT BE THE CASE.

AND SO I THINK AND I LIKE EVERYBODY ELSE, I AM CONCERNED ABOUT OUR EMPLOYEES AND I AM CONCERNED ALSO ABOUT THE COST TO OUR RESIDENTS.

YOU KNOW, IT IS HIGH COSTS ALREADY HIGHER THAN THE AVERAGE AND NOT NOT BY A LITTLE.

WE'RE TALKING ABOUT OVER TWO DOLLARS.

AND SO I THINK WE, IN MY OPINION, AGAIN, WE NEED TO HAVE MORE INFORMATION TO ALLOW US TO MAKE A MORE INFORMED DECISION.

IS THAT THE CONSENSUS? I AGREE, YES. OKAY.

MR. CORTEZ. AND JUST TO MAKE SURE I UNDERSTAND, I THINK YOU HAVE A VERY GOOD POINT, IF I'M UNDERSTANDING CORRECTLY IS THAT IF WE OUTSOURCE AT THE LOWER RATE, WE WOULD STILL HAVE COSTS THAT THE CITY WOULD HAVE TO BURDEN.

STILL, AND WE NEED TO FIGURE OUT WHAT THAT NUMBER IS, SO THAT WOULD PLAY INTO THE FACTOR OF WHAT IT ACTUALLY STILL COSTS THE RESULT.

SO WASCO. ALL RIGHT, BECAUSE WE MIGHT VIEW THAT AS SAVINGS, BUT IN ACTUALITY, WE MAY NOT HAVE THE SAVINGS THAT WE THINK WE HAVE.

OK, THAT'S VERY GOOD POINT. YEAH, IT'S STILL A LITTLE BIT HARD FOR ME TO FATHOM BECAUSE, YOU KNOW, OUR WATER BILL IS THREE PRONGED, RIGHT? SO.

SO, YOU KNOW, ASSUMING WATER AND SEWAGE DOESN'T GO UP, YOU KNOW, THESE SCENARIOS ARE GOING UP FIVE DOLLARS, NINE DOLLARS, TEN DOLLARS, TWELVE DOLLARS.

YOU KNOW, AS MUCH AS SEVENTEEN DOLLARS.

SO YOU FIGURE, WELL, SEVENTEEN DOLLARS.

HOW CAN I, YOU KNOW, VARY.

BUT THE OVERALL WATER BILL WOULD BE JUST SHY OF A HUNDRED DOLLARS, SO, YOU KNOW, FROM EIGHTY DOLLARS AND FIFTY CENTS TO ONE HUNDRED DOLLARS.

SO, YOU KNOW, AGAIN, YOU KNOW.

IT'S IT LOOKS SMALL IN SOME REGARDS, BUT IN OTHERS, YOU KNOW, THAT'S.

THAT'S ENOUGH FOR FOR THREE DIFFERENT MEDICATIONS.

YOU KNOW, SO THAT'S DEFINITELY WE NEED TO REVIEW THE NUMBERS, BUT I WANT TO INCLUDE THE OVERALL PICTURE OF THE FINAL WATER BILL.

YEAH, RIGHT. AND JUST A POINT OF CLARIFICATION IN REGARDS TO THE WATER BILL BECAUSE MR. CORTEZ HAS BROUGHT THIS UP BEFORE.

YOU KNOW, YOU ASK PEOPLE, HOW MUCH IS YOUR WATER BILL? AND THEY'RE SAYING, YOU KNOW, 80 SOME DOLLARS, BUT THE WATER BILL IS ONLY A PORTION OF THAT. WE HAVE REFUSE AND WE HAVE, YOU KNOW, SEWER AS WELL.

SO ANYWAY, SO ARE YOU THEN FOR MORE INFORMATION AND MR. GARCIA. THAT'S ALL I HAVE.

OK. MR. MAYOR, CAN I ASK YOU A QUESTION? YES, OF COURSE. MR. HOBART WHEN WE'RE HAVING THAT DISCUSSION, IT LOOKED LIKE YOU MIGHT HAVE WANTED TO CLARIFY SOMETHING. WAS THERE SOMETHING YOU WANT TO CLARIFY FOR US? WELL, YEAH, THERE ARE A COUPLE OF COMMENTS THAT STAFF AND I HAD BEEN WORKING ON, YOU KNOW, INTENDED TO KIND OF WRAP THIS UP TO THE DECISION THAT I THINK YOU'VE ALREADY ARRIVED AT. BUT YOU'RE EXACTLY RIGHT.

THE THE CALCULATIONS INVOLVED IN THE THOUGHT THAT NEEDS TO GO IN TO DECIDE WHAT COSTS WILL REMAIN IS ONE PIECE OF THIS.

AND IF I FROM FROM YOU TWO, IF I COULD, I'LL JUST TAKE YOUR PARTS AND WRAP IT INTO THIS DISCUSSION. IF THAT'S OK WITH YOU GUYS, WE'LL COVER WHAT WE TALKED ABOUT.

I MEAN, THERE'S A LITTLE MORE SCRIPTED SET OF INFORMATION WE WERE GOING TO DELIVER, BUT AT THIS POINT, IT DOESN'T MAKE SENSE TO BACK UP AND DO THAT.

SO THERE ARE COSTS THAT WILL TRANSFER FROM AN ENTERPRISE TO OUTSIDE AN ENTERPRISE AND

[00:45:03]

THEY'LL THEY WILL TRANSFER, MOST LIKELY BACK TO GENERAL FUND SORT OF SOURCES.

SO THAT'S A DOWNSIDE OF THAT, THAT MULTIPLIES THOSE THOSE LEFTOVER COSTS.

YES, WE MIGHT NOT HAVE TRUCKS, WE MIGHT NOT HAVE DRIVERS, BUT WE'LL STILL HAVE A STREET SWEEPER. SO THERE'S NO MECHANISM FOR CREATING A RATE FOR STREET SWEEPING AND OUR ABILITY TO COLLECT RATES FOR TRASH COLLECTION THAT ARE NOW COVER THAT GO AWAY.

SO IT IS COMPLEX AND IT WAS NOT WITHIN THE SCOPE OF WHAT WE SET OUT TO DO HERE WAS HOW DO WE GET OUR RATES FIXED? SO GOING FORWARD, WE'RE NOT BANKRUPTING OUR OUR SANITATION ENTERPRISE AND RUNNING OUR RESERVES DOWN TO ZERO.

SO THE WORK THAT MR. SCHOEN DID EXACTLY THAT AND HIS INCLUSION OF THE OPTION OF LOOKING AT OUTSOURCING AS AN OPTION IS ENTIRELY WITHIN SCOPE.

WHAT I'M HEARING FROM THE COUNCIL TONIGHT IS TO DIG DEEPER INTO THESE OPTIONS, COMPARE AS CLOSE AS WE CAN APPLES TO APPLES AND AND WE'RE ABSOLUTELY PREPARED TO DO THAT.

I DON'T THINK IT REQUIRES ADDITIONAL RATE STUDY, NECESSARILY.

WE MAY RELY ON SOME EXPERTISE FROM MR. SCHOEN AND HIS FIRM TO GET COMPARABLE SORTS OF INFORMATION IN OTHER TOWNS THAT HAVE DONE THIS. I THINK THE PART THAT THAT I WANT TO REMIND COUNCIL IS THERE IS A THERE IS A BURN RATE OCCURRING RIGHT NOW IN OUR SANITATION ENTERPRISE TO THE TUNE OF 900000 THIS YEAR AND SO THAT THOSE OPERATING RESERVES WILL EVENTUALLY GO TO ZERO IF WE DO NOTHING.

IT'LL HAPPEN DURING FISCAL YEAR 23-24 THAT ARE RESERVES WILL BE EXHAUSTED.

RIGHT, SO CORRECTING THIS, WE CAN'T AFFORD TO KICK THE CAN TOO LONG.

WE NEED TO MAKE SOME SORT OF DECISION.

AND SO THE THE DECISION REALLY THAT I INTENDED TO PRESENT TO YOU TONIGHT WAS WAS A GO FORWARD WITH ONE OF THESE SCENARIOS THAT WE PRESENTED TONIGHT CONTINUE THE 218 PROCESS ON A CALENDAR THAT WE'VE DEVELOPED THAT CALLS FOR A MARCH 22 ROLL OUT.

AND THAT WOULD INCLUDE A NUMBER OF THINGS FINISHING THE RECYCLING CONTRACT WITH AMERICA AND GETTING THE 218 PROCESS COMPLETED, GETTING THE RATES ADOPTED AND IMPLEMENTED, AND THEN ACTUALLY ROLL IT OUT.

WHETHER IT'S OPTION 2A OR ONE OR THE OTHER ONES DOESN'T REALLY MATTER TO THAT PROCESS.

AND MARCH ISN'T A MAGIC NUMBER.

MARCH 1ST IS NOT A MAGIC NUMBER.

THE DUE DATE BASED ON THE LEGISLATION IS JANUARY 1ST.

THERE'S A VERY SMALL FRACTION OF CITIES IN THE IN THE STATE THAT ARE GOING TO MEET THAT DEADLINE, AND THERE ARE MECHANISMS WITHIN THE STATE IN THE REGULATORY BODIES THERE THAT ARE RUNNING THIS, THAT'LL ALLOW US AS LONG AS WE'RE MAKING DOCUMENTED PROGRESS TOWARD IMPLEMENTING THE LAW, THEN WE'RE OK, BUT IF WE JUST STOP AND START TWIDDLING THEIR THUMBS AGAIN, THEN WE ACCEPT SOME LIABILITY FOR FOR NOT MAKING PROGRESS.

SO. ALL THAT BEING SAID, I THINK THE OPTION OF OUTSOURCING THE RECYCLING PIECE AND THE THIRTEEN EIGHTY THREE REQUIREMENTS IS IS NOT AN OPTION.

THAT'S NOT SOMETHING WE CAN BRING IN-HOUSE IN AN ACCEPTABLE PERIOD OF TIME BOTH THE EQUIPMENT AND TRAINING AND PERSONNEL AND UNDERSTANDING THE REGULATORY REQUIREMENTS OF THAT. SO ONE WAY OR ANOTHER, WE'LL HAVE TO PROCEED WITH SOMEONE HELPING US ACCOMPLISH THAT. SO BUT WE'RE WE'RE PREPARED AND WILLING TO TAKE A STEP BACK, ADJUST OUR CALENDAR AND OUR TARGET DATE AND DO A MORE IN-DEPTH STUDY OF THE OUTSOURCING OPTION.

THERE ARE AN INFINITE NUMBER OF THESE THAT WE COULD PUT TOGETHER, AS YOU PROBABLY RECOGNIZE WITH THAT MANY COLUMNS AND ROWS, AND THERE IS NO PERFECT ONE.

THEY EACH HAVE THEIR ADVANTAGES AND DISADVANTAGES.

WHAT YOU SEE REPRESENTED HERE IS A TWO TEAR OF THE BAND-AID OFF OPTIONS AND TO MORE GRADUAL OPTIONS THAT SPREAD THE RATE INCREASES OVER MORE YEARS, RIGHT? AND THEN A WEEKLY AND BI WEEKLY OPTION WITHIN THAT.

SO ALL THAT BEING SAID, WE'RE WE'RE HAPPY TO TAKE THE DIRECTION TO TO GO BACK, DO MORE

[00:50:09]

I WOULD RECOMMEND DOING THAT WITH ANOTHER WORKSHOP.

IT'S UNLIKELY WE CAN GET THAT SCHEDULED BEFORE THE NEW YEAR.

AND SO THAT WILL PROBABLY CAUSE A AT LEAST ANOTHER MONTH DELAY IN IMPLEMENTING WHATEVER OUR SOLUTION IS AT THE BACK END.

BUT THAT'S SOMETHING THAT I MEAN, I THINK ALL THIS BODY WANTS THIS KNOW THAT ADDITIONAL INFORMATION TO MAKE AN INFORMED DECISION.

EVERYBODY HAS THOSE DOUBTS AND YOU JUST PROVE IN YOUR IN YOUR PRESENTATION THAT YOU DID RIGHT NOW THAT WE DON'T KNOW EVERYTHING YOU KNOW.

WE DO NOT MENTION A COUPLE OF THINGS THAT WERE NOT PART OF THE PRESENTATION YET.

YOU KNOW, YOU DID MENTION AS COSTS THAT ARE ASSOCIATED THAT WE WOULD NOT BE ABLE TO RECOVER. AND THOSE ARE THE KIND OF THINGS THAT I THINK ALL OF US WANT TO KNOW BEFORE WE MADE THAT DECISION.

RIGHT. AND I WOULD BE REMISS IF I DIDN'T ECHO YOUR CONCERNS ABOUT STAFF.

I MEAN, WE HAVE STAFF THAT'S DOING THE JOB AND DOING IT WELL WITH THE WITH THE SITUATION WE HAVE. AND IT'S I THINK IT'S VERY IMPORTANT THAT WHATEVER DECISION WE MAKE TAKES THAT INTO HIGH ACCOUNT.

SURE. AND THAT'S AN IMPORTANT PART OF THE DECISION MAKING PROCESS.

MR. MAYOR FROM FROM WHAT I UNDERSTAND IS THE I'M ASKING THE CITY MANAGER, IS WE NEED TO PICK ONE AND MOVE FORWARD HERE.

AND THEN IF WE'RE DECIDING ABOUT THE BIGGER QUESTION THAT WILL MOVE FORWARD IN THE BACKGROUND.

MY RECOMMENDATION WOULD BE TO PAUSE BECAUSE WE HAVE A DEADLINE FOR THE 218 THE PROP 218 PROCESS WHERE THE FIRST NOTICE THAT'S ALSO ON YOUR AGENDA WOULD NEED TO GO BE MAILED ON DECEMBER 20TH.

IF WE WANT TO TRY TO KEEP WITH OUR CURRENT SCHEDULE, SO BY PUSHING THE PAUSE BUTTON TONIGHT, DOING SOME MORE STUDY ON THE ALTERNATIVES, WE'RE NECESSARILY ABANDONING THAT CURRENT SCHEDULE AND ASSUMING WE'RE GOING TO HAVE A SCHEDULE THAT ROLLS OUT A SOLUTION IN APRIL OR MAY OR BEYOND.

SO THE DECISION DOESN'T HAVE TO BE MADE ABOUT THE THE DRAFT NOTICE THAT'S INCLUDED IN YOUR PACKET TONIGHT IF WE GO THAT WAY.

AND JUST TO SAY ON MY PART, YOU KNOW, IT IS VERY APPARENT THAT WE DO NEED TO BALANCE HOW THIS COSTS ARE BEING RECOVERED.

THAT IS VERY OBVIOUS.

I THINK IT'S OBVIOUS TO ALL OF US, MUST THAT THAT MUST BE DONE.

IF THE QUESTION IS, YOU KNOW, WHAT ARE WE GOING TO TAKE? WHAT ARE THOSE COSTS THAT ARE HIDDEN THAT WE CAN SEE FROM THIS PRESENTATION? EXACTLY. AND GUESSING AT THAT HAS BEEN TRIED IN OTHER CITIES AND WITH DISASTROUS RESULTS BECAUSE WHAT ENDS UP HAPPENING IS THE GENERAL FUND BEGINS SUBSIDIZING THE ENTERPRISE OUT OF A VARIETY OF REASONS, ONE OF FEAR OF ADJUSTING RATES TO A REALISTIC LEVEL OR OTHER PRESSURES. AND IN THAT NEVER ENDS WELL.

SO YOU JUST KEEP PROVING MY SUSPICIOUS.

YES, YES, YES, I HAVE.

I APOLOGIZE FOR THE ADDITIONAL COMMENTS, BUT I BELIEVE SO WE HAVE A FREIGHT TRAIN THAT'S GOING DOWN SET OF TRACKS, RIGHT? AND WE'VE GOT THREE POINT SEVEN MILLION DOLLARS IN RESERVES.

WE'RE EATING, WE'RE EATING UP TRACK EVERY SINGLE YEAR.

AND EVENTUALLY THERE'S GOING TO BE A POINT WHERE THAT TRACK IS MISSING AND WE'RE GOING TO GO INTO THAT PROVERBIAL RAVINE.

SO AT THE SAME POINT IN TIME, WE STILL NEED TO MAKE A DECISION OR GUIDANCE, GIVE GUIDANCE TO HOW WE'RE GOING TO ADDRESS THIS.

SO THE GOOD THING WITH PROP 18 IS THAT WE CAN PASS A SCHEDULE RATE SCHEDULE INCREASE, AND WE CAN, CAN WE DECIDE NOT TO INCREASE IT, SHOULD WE CONTROL COSTS, SHOULD WE GO SO WE CAN AS WE CONTINUE TO LOOK AT OTHER OPTIONS? IN OTHER WORDS, LET'S SAY WE WE RECOMMEND A ONE OF THE SCHEDULES HERE.

WE MOVE FORWARD WITH THE TIMES AHEAD, THE SCHEDULE, BECAUSE AGAIN, WE'RE EATING AWAY AT OUR RESERVES EVERY MONTH WE GO ON, WE'RE EATING AWAY AS WE'RE DOING THAT, CAN WE LOOK AT OTHER OPTIONS AS WELL BECAUSE WE NEED TO ADDRESS THIS, THE ELEPHANT IN THE ROOM, WHILE WE'RE LOOKING AT ALL THE OTHER OPTIONS THAT YOU GUYS HAVE THAT WE HAVE ON THE TABLE? WHAT TALK TO ME? THAT'S WHY I'M ASKING THE QUESTION, RIGHT? SO ON THE SURFACE, THAT WOULD SEEM LIKE SOMETHING WE WOULD BE ABLE TO DO.

UNFORTUNATELY, IN PARALLEL WITH THAT, IF WE DECIDE WE'RE GOING TO GO FORWARD WITH THOSE

[00:55:02]

AND SO WE WOULD FIND OURSELVES OUT THERE.

THE OTHER THING THAT WILL OCCUR IS WE WILL ISSUE THAT NOTICE EVEN IF WE INTEND NOT TO IMMEDIATELY ADJUST THE RATES.

AND WE WOULD THEN BEGIN THE PUBLIC PROCESS OF FOLKS COMING IN AND WANTING TO TALK ABOUT THAT AND GIVING THE FEEDBACK, WHICH IS PART OF THE 02:18 PROCESS.

BUT THE RESOURCES THAT WILL BE USED IN MANAGING THAT AND COLLECTING THAT INFORMATION IN THE AMOUNT OF TIME AND MEETINGS OVER SOMETHING WE MAY NEVER IMPLEMENT MIGHT BE A MISTAKE.

WE WOULD CHOOSE A WE WOULD CHEW UP NOT ONLY MEETING TIME, BUT A LOT OF STAFF TIME AND CAUSE FOLKS PERHAPS UNNECESSARY ANGST OVER SOMETHING THAT MIGHT NEVER HAPPEN.

SO YES, IT CAN BE DONE.

THERE WOULD BE SOME DANGLING PIECES OF IT THERE.

I DON'T BELIEVE MR. MARTIN WOULD WANT TO GO ON TO A MONTH TO MONTH AGREEMENT TO DO THE BLUE CARD SERVICE.

SO, SO EVERYTHING'S LINKED TOGETHER AND.

I THINK I THINK THE PRUDENT OPTION AT THIS POINT IS TO TO FOREGO OUR TARGET SCHEDULE, LET THAT SLIP LONG ENOUGH TO GET THE INFORMATION TOGETHER TO MAKE THE DECISION AND BE CONFIDENT THAT IT'S THE WAY WE WANT TO COMMIT TO AND GO FORWARD.

I WOULD BE PERFECTLY FINE WITH THAT.

I HOPE ALL OF YOU WOULD BE.

WHAT DO YOU THINK, MR. CORTEZ? I'M FINE WITH THAT. OK.

MR. MAYOR, CAN I JUST ASK ONE OTHER QUESTIONS? IF THIS IS INAPPROPRIATE, SOMEBODY LET ME KNOW.

BUT IS THERE A CONSENSUS BETWEEN THE FOUR OF YOU OF WHICH DIRECTION DO YOU GUYS THINK WE SHOULD GO? I MEAN, BASED ON THE INFORMATION WE HAVE RIGHT NOW? WELL, YEAH, I THINK I THINK SO IF WE'RE GOING TO IF WE'RE GOING TO CONTRACT FOR BLUE CARD SERVICE FOR LACK OF A BETTER TERM, THEN I THINK 2 A WAS THE CONSENSUS WITH THE GROUP THAT STUDIED IT. IF YOU SHED ANY KIND OF EMOTIONAL TIES TO THIS DECISION, AND YOU JUST ARE COUNTING BEANS, THEN IT'S DIFFICULT TO GET AWAY FROM THE NUMBERS ON THE OUTSOURCED OPTION VERSUS WHAT THE CITY CAN AFFORD TO DO IT. BUT IT'S NOT AN UNEMOTIONAL DECISION AND THERE ARE FACTORS BEYOND BEANS, THE RESIDENTS SATISFACTION THAT CONTROL THE ECONOMIES OF SCALE IN OUR SHOP OPERATION AND SO FORTH THAT HAVE THAT ARE IMPACTED BEYOND THE IMMEDIATE COST SAVINGS.

AND SO THE FIRST ANSWER IS EASY.

2A IS OR IS OUR RECOMMENDATION IF WE MOVE FORWARD TONIGHT WITH A RATE INCREASE IN A CONTRACT ON THE RECYCLING.

THE OTHER WE DON'T HAVE ENOUGH INFORMATION YET, BECAUSE THAT WAS NOT REALLY PART OF THE SCOPE TO GIVE YOU AS CONFIDENT A RECOMMENDATION, OTHERWISE, I HOPE.

NO THANK YOU. FOR THE RECORD, THAT'S THE WAY I WAS LEANING, 2A, JUST BECAUSE IT'S A GRADUAL REDUCTION IN OUR RESERVES TO MINIMIZE THE IMPACT ON OUR RESIDENTS ON AN ANNUAL BASIS. SO I MEAN, THAT'S WE WOULD USE THE RESERVES AGAIN TO GRADUALLY EASE EVERYBODY IN.

AND MOST IMPORTANTLY, IT'S CASH FLOW POSITIVE IN FISCAL YEAR TWENTY SIX, WHERE WE'RE EITHER OF THE FIRST OPTIONS DO NOT GET US THERE TILL TWENTY NINE THIRTY.

SO WE'RE CONTINUING TO BURN FOR ANOTHER THREE OR FOUR YEARS IN THOSE OPTIONS.

MR. HURLBERT HAVE WE GIVEN YOU A CLEAR DIRECTION IF WHAT WE WANT? I'LL LET YOU KNOW WHAT I THINK.

I THINK I'VE BEEN TOLD THAT WE WOULD LIKE TO COLLECT AS MUCH ACCURATE DATA AS WE CAN ON THE OUTSOURCING OPTION, BOTH IMMEDIATE AND LONG LONG TERM COSTS AND SAVINGS.

SO WE HAVE A TRUE PICTURE OF THAT.

ULTIMATELY, I THINK THAT THIS WORKSHOP TONIGHT WAS INTENDED TO GET THIS INFORMATION INTO YOUR HANDS AND HAVE YOU THINKING ABOUT THOSE NON FISCAL IMPACTS AS THE DIRECTORS OF THE VISION FOR THE CITY. THAT REALLY IS AN IMPORTANT PART OF YOUR ASSIGNMENT HERE IS TO THINK

[01:00:01]

IF I MAY ASK MR. HURLBERT, WHAT DO YOU THINK THE TIMELINE WOULD BE ON THAT REPORT? BECAUSE ARE WE OUTSOURCING THAT RESEARCH AS WELL? SO I MEAN, IF WE'RE TALKING TO THREE TO SIX MONTH TIMELINE, THAT MIGHT BE.

NO, NO, THIS WOULD BE JANUARY.

I JUST DON'T REALISTICALLY THINK WE CAN GET IT DONE BEFORE THE END OF THE FISCAL OR THE CALENDAR YEAR. SO I WOULD SAY BY THE MEETING IN JANUARY, WE'RE DARK THE FOURTH.

WE MAY TRY TO SNEAK A SPECIAL MEETING, ANOTHER WORKSHOP IN BEFORE THE 18TH OF JANUARY AND MAYBE A DECISION ON THE 18TH.

RIGHT. AND THAT'S WHAT I HEARD FROM YOU IN YOUR PREVIOUS COMMENTS.

SO YES, I'M UNLESS I GET PANICKED LOOKED FROM STAFF RIGHT NOW.

DON'T BE COMMITTING TO SOMETHING THAT THEY CAN NOT DELIVER.

THEY'RE NOT MAKING EYE CONTACT WITH YOU RIGHT NOW.

I DON'T KNOW. AND AGAIN, I I DON'T SEE SENDING MR. SCHOEN AWAY WITH WITH AN ASSIGNMENT FOR ANOTHER LARGE AMOUNT OF INFORMATION.

I THINK IT WOULD BE MORE TARGETED INFORMATION, LIKE I SAID FROM OTHER JURISDICTIONS THAT MAYBE WE CAN LEARN FROM THEIR EXPERIENCE AND WE HAVE A NEIGHBOR WHO IS IMPLEMENTING THIS RIGHT NOW, SO WE MAY BE ABLE TO GLEAN SOME BENEFITS FROM THAT AS WELL.

I THINK YOU'RE THE RIGHT PERSON TO MAKE THOSE DECISIONS AS TO WHAT NEEDS TO BE LOOKED AT.

OK. SO IS THERE ANYTHING ELSE THAT WE'RE COVERING TONIGHT? ANYTHING ELSE CRITICAL THAT I MISSED? OK, MADAM CLERK ALLOW ME TO GO BACK TO MY SCRIPT HERE, PLEASE.

YES. MY APOLOGIES.

ALL RIGHT. ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? OK. I DON'T SEE ANY PUBLIC COMMENT, MADAM CLERK, DO WE HAVE ANY EMAIL COMMENTS? OK. AND WE'RE WAITING MR. SCHOEN, I WANT TO THANK YOU FOR BEING HERE AND GIVING THAT PRESENTATION.

THANK YOU VERY MUCH. WHILE, WE'RE WAITING FOR THE RESPONSE.

ISRAEL ASKED A GOOD QUESTION.

IS THERE SOMETHING COMPLETELY DIFFERENT THAN THIS THAT YOU WOULD LIKE TO SEE STAFF WORKING ON? OK.

NOT ON MY PART. NO, THE ONLY THING THAT IS THAT SHE WOULD, BUT IT'S IN ANOTHER SECTION IS WHAT WE'RE WHAT OUR CURRENT RATE IS.

I THINK THE CURRENT RATE ON THERE.

WE CAN ADD THAT INFORMATION AND I THINK PROBABLY WE CAN EXTEND THIS OUT.

CAN YOU PLEASE RESERVE THE COMMENTS ON THE PUBLIC COMMENT PORTION? YES, THANK YOU.

SORRY, MADAM CLERK, YOU HAVE NO EMAIL COMMENTS AT THIS TIME.

THANK YOU VERY MUCH.

ALL RIGHT. REPORTS FROM CITY MANAGER.

WE ACTUALLY HAD..

ITEM B. OH, I APOLOGIZE.

AND IT IS A REPORT FROM THE CITY MANAGER.

SO RIGHT, RIGHT.

SO ITEM B REVIEW COUNCIL VACANCY OPTIONS AND PROVIDE GUIDANCE TO STAFF.

[6) b. Review Council Vacancy Options and provide guidance to staff. (Hurlbert)]

YES. THANK YOU, MADAM CLAIRE, FOR KEEPING US POSTED.

THANK YOU. HONORABLE MAYOR AND MEMBERS OF THE COUNCIL.

PURSUANT TO THE MR. CORTEZ ANNOUNCEMENT, LAST MEETING STAFF HAS BEEN DOING RESEARCH ON THE OPTIONS GOING FORWARD FOR FILLING THE VACANCY ON THE COUNCIL.

SO IF YOU HAD A CHANCE TO REVIEW THE LINKS TO THE TWO GOVERNMENT CODE SECTIONS THAT I FORWARDED TO COUNCIL, SOME OF THIS WILL JUST BE REVIEW.

BUT THERE REALLY ARE.

IT'S A IT'S A BINARY DECISION IN THE BEGINNING TO GO FORWARD WITH AN APPLICATION AND APPOINTMENT PROCESS OR TO GO IMMEDIATELY TO A SPECIAL ELECTION.

IF THE COUNCIL FAILS TO APPOINT A REPLACEMENT, IF THEY CHOOSE OPTION A.

AFTER 60 DAYS, THEN THE GOVERNMENT CODE WOULD CALL FOR MOVING TO A SPECIAL ELECTION UNLESS SOME OTHER PROVISION IS MADE.

WE HAVE ASKED THE COUNTY ELECTIONS DEPARTMENT TO GIVE US AS CLOSE A COST ESTIMATE AS THEY

[01:05:04]

WE EXPECTED THEM.

I FRANKLY EXPECTED THEM FRIDAY, BUT WE HAVEN'T SEEN THOSE YET.

WHAT WE'RE HEARING FROM OTHER JURISDICTIONS, THOUGH, IS THE COSTS CAN VARY WILDLY FROM $10000 TO OVER ONE HUNDRED THOUSAND FOR TO RUN A SPECIAL ELECTION.

SO I WILL CONTINUE TO COLLECT THAT RIGHT NOW.

THE THE PROCESS FOR DOING AN APPLICATION AND APPOINTMENT PROCESS WOULD BE TO TO ADVERTISE THAT NEED THROUGH A VARIETY OF MEDIA, EXCEPT SOME SORT OF A FORMAL APPLICATION.

AND THEN PRODUCE OR TO FOLLOW A TRANSPARENT SORT OF A PROCESS WHERE THOSE APPLICATIONS AND THOSE APPLICANTS CAN COME IN DURING AN OPEN SESSION MEETING AND GO THROUGH A SET SERIES OF INTERVIEW QUESTIONS IN FRONT OF THE COUNCIL, THEN THE COUNCIL WOULD HAVE THAT INFORMATION. PERHAPS NOT AT THAT MEETING, BUT PERHAPS THE FOLLOWING MEETING.

THEN A VOTE WOULD BE TAKEN ON THE PREFERRED APPLICANT AND WE COULD CONCLUDE THE PROCESS THAT WAY. THAT CAN BE DONE IN A RELATIVELY SHORT AMOUNT OF TIME.

THE HOLIDAYS DON'T HELP WITH THAT SCHEDULE, BUT CERTAINLY NOTIFICATION AND SOLICITATION OF INTEREST COULD OCCUR THROUGH THE HOLIDAY PERIOD AND COULD BEGIN ADDRESSING THIS EARLY.

WE DIDN'T NECESSARILY HAVE A TARGET OF MAKING THAT DECISION BY THE SECOND MEETING IN FEBRUARY. ALL RIGHT.

ANY COMMENTS FROM THE MEMBER FOR CORTEZ? NO COMMENTS. THANK YOU, MR. CORTEZ. AND I APOLOGIZE.

MAY I PRETEND? NO COMMENT.

THANK YOU. IMAM GARCIA.

UH, THANK YOU FOR THE REPORT.

I MEAN, I JUST. THAT SCARES ME.

THE PRELIMINARY NUMBERS OF THE COSTS.

I THINK THAT'S INCREDIBLY TOO HIGH TO HAVE ANOTHER ELECTION JUST AROUND THE CORNER IN TWO YEARS, WHICH WE BEGAN PREPARING FOR IN A YEAR.

BUT THOSE ARE MY INITIAL THOUGHTS.

ASIDE FROM THAT, I LOOK FORWARD TO SOME MORE NUMBERS.

OK. MR. MARTINEZ POINT OF CLARIFICATION USED TO HAVE ALMOST THREE YEARS LEFT ON YOUR TERM, CORRECT? YEAH. SO BUT BECAUSE OF THE FINANCIAL BURDEN ON THE CITY, I MEAN, UNLESS WE'RE TALKING IN THE $10000 RANGE, THERE'S JUST NO WAY THAT I COULD THINK IT'S IN THE BEST INTEREST OF THE CITY TO DO A SPECIAL ELECTION.

SO. AND I DON'T THINK THAT WE'RE GOING TO BE ANYWHERE CLOSE TO THAT NUMBER BECAUSE THE NUMBERS I'VE HEARD ARE SIX FIGURES, PROBABLY.

SO I THINK IT IS BEST FOR US TO DO AN OPEN INTERVIEW PROCESS AND.

THANK YOU, MR. MARTINEZ. I FEEL THE SAME WAY, OK? AND I, YOU KNOW, I DON'T WANT TO SPIN OUR CONSTITUENTS MONEY IF WE DON'T NEED TO.

AND SO THE INTERVIEW PROCESS IS SOMETHING I'M FAMILIAR WITH.

I WENT THROUGH THAT PROCESS MYSELF.

SOME OF YOU MIGHT REMEMBER.

AND SO I THINK THAT WE NEED TO MAKE SURE THAT WE ESTABLISH WHAT THE QUALIFICATIONS ARE FOR ANY INDIVIDUALS VYING FOR THAT SEAT.

AND THEN LET'S JUST GO THROUGH THE PROCESS.

AND I BELIEVE THAT OUR CITY ATTORNEY AND THE EXPERIENCES OF SOME OF THE COLLEAGUES OF OUR CITY CLERK WILL HELP US GREATLY IN IN TYING THAT DOWN QUICKLY.

THERE WAS PLENTY OF PRECEDENT FOR THIS, AND I THINK WE CAN GET THAT PUT TOGETHER FOR THE JANUARY TIME FRAME.

ALL RIGHT. THE THEN YOU HAVE YOUR DIRECTION, MR. GILBERTO. ALL RIGHT, THANK YOU VERY MUCH.

ALL RIGHT. ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? NO PUBLIC COMMENTS.

MADAM CLERK. ARE THERE ANY ANY EMAIL COMMENTS? IS THAT TUNES RINGING IN YOUR HEAD? I SEE EVERYONE LOOKING AT.

YOU FEEL THEIR EYES ON YOU.

[01:10:02]

WE HAVE NO E-MAIL COMMENTS MAYOR.

THANK YOU, MADAM CLERK. REPORTS FROM CITY MANAGER MR. HURLBERT. I HAVE NOTHING FURTHER TONIGHT.

THANK YOU. REPORTS FROM CITY COUNCIL MAYOR PRO TEM, NO, NOTHING.

[8) REPORTS FROM CITY COUNCIL: ]

THE WASCO CHRISTMAS TREE PARADE.

I WANT TO TAKE IT HERE. I, YOU KNOW I'M GOING TO LET YOU SPEAK ABOUT IT BECAUSE YOU REALLY IT'S GREAT TO SEE ALL THE PEOPLE OUT THERE.

SO ALL I HAVE. OH, PLEASE.

OH NO. I'M JUST IT.

JUST IT'S GREAT TO SEE SO MUCH PARTICIPATION, SO MUCH SUPPORT FROM THE COMMUNITY.

THERE WAS I WALK THAT THE PARADE ROUTE, AND IT WAS JUST JUST A BUNCH OF KIDS LAUGHING, HAVING A GOOD TIME, ADULTS HAVING A GOOD TIME.

IT'S JUST, YOU KNOW, IT MAKES ME PROUD OF BEING A PART OF THIS COMMUNITY.

I APPRECIATE THAT. THANK YOU, MR. CORTEZ. BOARD MEMBER GARCIA.

DITTO TO MEMBER CORTEZ'S COMMENT, SO IT WAS GOOD.

I WANT TO THANK ALL THE STAFF AS WELL FOR ALL THE HARD WORK AS WE'VE SEEN IN ALL THE RECENT ANNOUNCEMENTS OF A AWARD TO FUNDING FOR VARIOUS GREEN SPACES AROUND TOWN.

I'M JUST EXCITED AND PRIMARILY THANKFUL TO THE WORK OF THE STAFF AND PURSUING THOSE OPPORTUNITIES. SO THANK YOU AND KEEP GOING AT IT AND KEPT MY EYE ON YOU FOR THAT.

THANK YOU. THAT'S ALL.

I GOT MAYOR. THANK YOU.

MR. MARTINEZ. NOTHING MR. MAYOR.

ALL RIGHT. WELL, YOU HEARD IT FROM MR. CORTEZ. THREE OF US ATTENDED THE PARADE AND LIGHTING OF THE CHRISTMAS TREE.

I THOUGHT IT WAS WONDERFUL.

I GET A WARM FEELING ABOUT IT BECAUSE, YOU KNOW, THIS IS WHAT WASCO IS.

THIS IS WHAT WE'RE USED TO THE COMMUNITY COMING TOGETHER TO CELEBRATE, AND WE ARE AT THAT LOCATION WHERE WE'RE CELEBRATING CHRISTMAS.

AND AND SO I'M VERY, VERY THANKFUL TO ALL THE PEOPLE THAT WORK ON PUTTING THAT TOGETHER IN A VERY SHORT AMOUNT OF TIME THAT HAS BECOME THEIR METHOD OF OPERATION, RIGHT? THEY JUST TAKE SOMETHING AND RUN WITH IT AND GET IT DONE.

AND SO I'M VERY APPRECIATIVE OF ALL OF THEM.

AND, YOU KNOW, THANK YOU TO OUR STAFF.

WE ALWAYS DO A WONDERFUL JOB.

I ALWAYS THANK YOU, AND I ALWAYS MEAN IT FROM THE BOTTOM OF MY HEART AND WITHOUT ANY FURTHER COMMENTS. THIS MEETING IS ADJOURNED.

GOOD NIGHT, EVERYONE. THANK YOU FOR BEING HERE.

THANK YOU FOR YOUR TIME.

* This transcript was compiled from uncorrected Closed Captioning.