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HomeMy WebLinkAbout02/26/2013 - Study SessionCity Council Minutes City Council Study Session February 26, 2013 -- 4:00 p.m. I. ROLL CALL - 4:10 p.m. Present: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle II. CURRENT BUSINESS I. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In response to Council Member Daigle's questions regarding Item 5 (Engineering Design and Construction Support Services Associated with Replacement of the Big Canyon Reservoir Floating Cover), Public Works Director Webb reported that MWH will design the cover and be in charge of construction management. He added that the contract also includes a warranty. In response to Council Member Henn's questions, Public Works Director Webb reported that the costs associated with Item 4 (Santa Ana Heights Pavement Restoration) relate to the properties located on the north side of Mesa Drive where there are grade differentials, fences, and structures within the public right -of -way: Regarding Item 7 (Material 'Testing and Inspection Services for Newport Beach Civic Center and Park Project), Assistant City Manager Badum reported that the do -over costs will be charged back to the subcontractor. In addition, he stated that work has been added to the project and there is an additional amount relative to the expanded scope. 2. ORANGE COUNTY SANITATION DISTRICT (OCSD) - FUTURE PROJECT OVERVIEW. [100 - ::013] Mayor Curry indicated that he is the City's representative on the Orange County Sanitation District (OCSD) Board and reported that the City completed $40 million of improvements through OCSD and another $100 million of projects will be discussed today. Nick Kanetis, OCSD Director of Engineering, utilized a PowerPoint presentation to discuss the OCSD's Newport Beach Construction Program. He addressed OCSD's mission, service area, governance, customer base, infrastructure, treatment plants, increasing levels of service, investments in infrastructure, and transition to rehabilitation and replacement. He discussed the six projects in Newport Beach which represent an investment of approximately $100 million and consists primarily of rehabilitation and replacement of deteriorated sewer pipelines. He addressed construction techniques, reported that the work will occur in street rights -of -ways, and addressed construction impacts to traffic patterns. Mr. Kanetis stated that a community outreach program will be implemented in order to gain community understanding and acceptance of the work, He presented examples of informational flyers and the construction hotline information. Volume 61 - Page 72 City of Newport Beach City Council Study Session February 26, 2013 Mayor Curry commented on impacts and inconveniences that will occur due to the program, but emphasized the importance of the program. Council Member Henn noted that almost every main arterial on the west side of Newport Beach will be impacted at some point. In response to Council Member Selich's questions regarding the proposed rate schedule, OCSD Assistant General Manager Jim Herberg reported that a rate increase of 4.8% is being proposed for the first year, followed by a 2.4% increase per year for the following four years. Nancy Skinner believed that whatever it costs to implement the program is worth every penny. Mayor Curry recessed the meeting at 4:25 p.m. and reconvened the meeting at 4:45 p.m. with all Council Members in attendance. 3. RESIDENTIAL REFUSE COLLECTION REQUEST FOR PROPOSALS (RFP), 1100- 20131 Mayor Curry emphasized that there is no proposal at this time, but clarified that ideas and options will be presented and Council will evaluate the options and provide direction to staff. He reported that hard copies of the PowerPoint presentation are available for public review. Municipal Operations Director Harmon reported that Council directed staff to develop a Request for Proposal (RFP) that would manage solid waste operations. He reported that staff has been working closely with HF &H to develop the initial study which will look at City operations Laith Ezzet, HF &H Senior Vice President, utilized a PowerPoint presentation to provide information about HF &H and his qualifications and background, the City's contract with CR &R to process residential waste, current service providers, and the amount of tonnage collected. He reported that 41% of the residential waste collected by the City is recycled. He addressed potential residential service options for the RFP, including a proposal for the current system, a proposal with specific guidelines on any system which the proposers believe will work in the City, and a proposal for three - stream collection with separate containers for trash, recycling and green waste, He noted that the third proposal would entail a different allocation of costs between recycling and trash compared to what currently exists. Mr. Ezzet addressed examples of other RFP requirements and transfer station tonnage. He noted that 56% of the City's transfer station capacity is underutilized and indicated that transfer station options include allowing the proposer to use it at no charge for delivering City waste, accepting additional fee - paying waste to generate revenue for the City, or closing the transfer station and using the facility for other City purposes. He added that the decision regarding the transfer station needs to be made in order to obtain the RFPs. Mayor Curry expressed concern about increasing fees. Council Member Gardner believed that the issue of fees should be discussed prior to making a final decision. Mr. Ezzet noted that the RFP will not have any predisposition regarding increased costs, but rather will request costs related to each option. In response to Council questions, Municipal Operations Director Harmon, reported that the City's facility acts as a transfer facility and that the trash is then sent to CR &R to be sorted. Mr. Ezzet added that the City's current service is considered a single - stream collection with manual service, and the RFP would propose to charge the City on a monthly cost - per -home Volume 61 - Page 73 City of Newport Beach City Council Study Session February 26, 2013 basis. Regarding the transfer station, he reported that the value of the City's transfer station could be quantified through the RFP process. Further, the issue of using the transfer station in connection with a three - stream process will need to be assessed to determine if the transfer station can handle a three - stream system versus the current one- stream system. Regarding whether the City's facility would be busier with a tbree- stream system, Municipal Operations Director Harmon reported that the current tonnage includes recycling and green waste. If the City changes to a three- stream system, he indicated that there will probably not be an increase in capacity. He further explained that it would still handle the same amount of tonnage, but that it would be staged differently. Regarding the differences between trucks that pick up trash and the ones that transfer trash, Municipal Operations Director Harmon explained that the City's collection trucks hold five to ten tons, and transfer trucks hold about 21 tons. He noted that there is a benefit to using a transfer station instead of hauling waste long distances. Regarding bin sizes, Municipal Operations Director Harmon affirmed that individual residents would have a choice of bin size at no charge, and that this is the current process for Newport Coast. Mayor Pro Tern Hill believed that the City should maximize the revenue opportunities of the transfer station and noted that, with a three - stream system, the time involved in moving the same amount of tonnage would increase, therefore providing less available capacity. Municipal Operations Director Harmon reported that the State considers truck trips, as well as other factors; and explained that trucks can be routed in order to keep the transfer station busy and handle the three hundred tons. Mayor Curry questioned the financial implications of the three transfer station options. Municipal Operations Director Harmon explained that there is currently no financial data until proposals are received since the private haulers will assess the financial implications during the RFP process. Council Member Henn emphasized the need to determine the desired core service level in order to generate the RFP, as well as having separate pricing items for the optional services desired by the residents. He pointed out that the City uses non - exclusive franchises to handle commercial waste hauling and noted that the City is one of the few cities that operate in this manner. He requested alternatives for the City and its economic implications. Municipal Operations Director Harmon confirmed that commercial contracts within the City are currently non - exclusive, expire by March 2017, and do not have a cap; however, he reported that staff is recommending going to a more exclusive commercial system. Council Member Henn noted that, in an exclusive environment, it would be a competitive bid process and may include revenue stream direct to the City from the haulers. Dr. Don Udall spoke in opposition to any change at this time, believed that the three - stream system would not work, and discussed comments received by him from former City Manager Bob Wynn who had a negative experience with a system that was contracted out. He reported that Assistant City Manager Badum spoke at his homeowners' association meeting and mentioned the aging trucks, as well as the risk of injuries and State compensation issues are factors for starting these discussions. Tom Moulson discussed the limited space for newer trash trucks in some areas and spoke in opposition to any change at this time. He addressed a survey which indicated that a majority of the people were satisfied with the present system. Dennis Baker agreed that the multi- stream system requires increased awareness; however, expressed concern that, with the single- stream system, someone would need to sort through his trash to pull out recyclable material. He expressed concern that there are three different Volume 61 - Page 74 City of Newport Beach City Council Study Session February 26, 2013 trash trucks that service a one block commercial area near his residence and asked how much is recycled in commercial areas. He indicated that he would have no problem with changing to a multi - stream system. Jim Mosher expressed concern with an outside vendor providing basic public services at a price that is lower than what government employees can provide. He expressed hope that, when the proposals are returned, staff will look into why the City could not replicate what the vendors are proposing. Stephanie Barger believed that the City needs to develop a zero -waste plan in order to have a positive impact on the environment. She stressed the importance of zero - waste, noted benefits to businesses, and encouraged the City to study the issue carefully. Ron Hendrickson referenced a letter from the Newport Hills Community Association Board which expressed concerns with replacing the City's in -house collection system. He spoke in opposition to a multi- stream system, and noted that sorting at home often fails and would ultimately require that the refuse be resorted elsewhere at an additional cost to the City. He suggested that an analysis be conducted regarding the areas in the City which can and cannot accommodate the auto -arm trucks. He believed that a multi- stream system would result in a reduction to the community's quality of life. Nancy Skinner believed that sorting recyclables will not decrease her quality of life. She expressed hope that the City Council will implement the use of recycling containers, but agreed that recycling takes education. She encouraged Council to promote recycling. Steve Prough expressed his appreciation to Council for considering this issue and spoke in opposition to a multi- stream system. He expressed concerns with outsourcing the work and noted the satisfaction rating of the current system. He discussed the need to know the exact costs for the various options in order to determine whether the gain is worth the risk of losing the present system. Tom Callister spoke in support of the single- stream system currently being used in the City. He expressed concern with lack of space for multiple containers and believed that it is a quality of life issue. David Fey spoke in support of keeping the current system, but agreed with going out to bid. He stressed the need for providing the same level of service that the City currently provides and expressed concern with the increase in trucks with a multi - stream system. Mayor Curry believed that the presentation did nothing to alleviate some of the concerns of the community. He noted that this is primarily a financial decision and that the only reason for proceeding with the RFP would be to consider a potential cost savings. He stressed the need to have financial data on the various options, noted the desire to focus on existing services, and acknowledged community testimony, input, and desires. He indicated that the City should duplicate the current service within the RFP, leave commercial operations the same for now, and encourage all bidders to make an offer of employment to the current City refuse staff. He emphasized that the issue began due to the need to replace existing trucks and believed that the City needs to maximize the value of its transfer station. He indicated that the City should not increase fees. Council Member Gardner believed that this is not strictly a financial decision and agreed with the need to be considerate to the residents. She pointed out the need for some type of automated system due to injuries and believed that there are ways to implement it without Volurae 61 - Page 75 City of Newport Beach City Council Study Session February 26, 2013 losing the current the level of service. She noted that quality of life also includes the future and believed that Council needs to consider the current process, but also consider making changes to refine the process. Council Member Henn noted that the direction today is for Council to give staff guidance so they can return with facts so Council can make decisions. He stated that determinations need to be made regarding the costs involved with outsourcing the same service that is being provided today. He noted that quality of life deals with other issues besides cost and that there are many factors to consider. He stated that Council has an obligation to ensure that all the facts are understood and added that residents have an obligation to withhold judgment until they have seen all the facts. He agreed with options one and three, including allowing outsourcers to provide solutions based on the needs of the various areas. He suggested having a second basis for proposal wherein a core set of standards is identified; the Peninsula uses single and multiple containers, including having bulk pickup and Saturday service; and the possibility of having a concierge service to assist special events and on- demand service. He noted that there are tradeoffs related to any option considered and reiterated the need to receive all of the facts. He added that outsourcers should be encouraged to offer employment to City employees. Mayor Pro Tem Hill commented on Council's responsibility to consider outsourcing if the City can save money and provide the same or better levels of service and quality of life. He indicated that he supports looking at pricing the City's existing system and believed that the issue of replacing the current equipment needs to be considered separately. He questioned the existence of a reserve for replacing the trucks. He agreed with the need to maximize the transfer station and believed that information on any other approach would be helpful, but stated that there is no single formula that would fit the City since the proposals would need to be unique to the different City areas. Council Member Petros stated that there is a resounding message from the community that the level of service should not change. He believed that this should be the main consideration and stressed the importance of comparing the differences between the current system and the outsourced system. Council Member Daigle noted the need for a comprehensive set of facts and stated that she is not convinced that recycling at the front end would be beneficial to the City. She stated that the community will have a chance to provide feedback during the process and asked that staff provide options and related costs. Council Member Henn clarified that he supports option one, as well as an amalgamation of options two and three. He believed that allowing unlimited pickup would be an important service level that would need to be replicated. He suggested requiring the contractors to provide information regarding the single- stream and multi - stream process with related costs and encouraged residents to determine what size containers they would need. Council Member Henn requested to see the RFP before it is distributed. Mayor Curry commented on the need to be thoughtful and clear as to what the RFP is expected to produce. Municipal Operations Director Harmon reiterated the options presented and believed that option two will also encompass option three. It was the consensus of Council to direct staff to return to the City Council with the Volume 61 - Page 76 City of Newport Beach City Council Study Session February 26, 2013 final REP before it is distributed. III. PUBLIC COMMENTS Regarding Item 10 (Uptown Newport Planned Community), Jim Mosher noted the complexity of the project and believed that Council should allow more time for public review. Regarding the Closed Session Agenda, he noted that there is a litigation item about the old reservoir cover. He noted that the Airport Settlement Agreement is not on the agenda and believed that, if a subcommittee has been designated to address the agreement, it should be noticed. IV. ADJOURNMENT - 6:28 p.m. The agenda for the Study Session was posted on February 22, 2013, at 7:20 a.m. on the City Ball Bulletin Board located outside of the City of Newport Beach Administration Building. dAi 4K�� Recording Secretary Mayor am- ;6W--- City Clerk Volume 61 - Page 77