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HomeMy WebLinkAbout2010-09-20 City Council Agenda Packet 09/20/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting. Special Meeting Council Chambers September 20, 2010 6:00 PM ROLL CALL SPECIAL ORDERS OF THE DAY 1. Proclamation Recognizing Leadership in Energy and Environmental Design (LEED) Existing Building Award for 525 University Avenue ATTACHMENT CITY MANAGER COMMENTS ORAL COMMUNICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration or Oral Communications period to 30 minutes. CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 2. Approval of Council Appointed Officers Committee Recommendation to Authorize City Auditor Leave of Absence CMR 361:10 and ATTACHMENT AGENDA CHANGES, ADDITIONS, AND DELETIONS 2 09/20/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. ACTION ITEMS Include: Public Hearings, Reports of Committees/Commissions, Ordinances and Resolutions, Reports of Officials, Unfinished Business and Council Matters 3. Approval of Recruitment for Acting City Auditor CMR 360:10 and ATTACHMENT 4. Public Hearing: From Finance Committee: Consider Changes to the City’s Refuse Rates, Which, if Adopted, Will Be Effective October 1, 2010 and Adopt a Resolution Amending the Utility Rate Schedules R-1, R-2, and R-3 for a Refuse Rate Increase; Adoption of Budget Amendment Ordinance for Fiscal Year 2011 to Adopt Municipal Fee Schedule Increases for the Palo Alto Landfill and Adjust Budgeted Revenues and Expenditures Within the Refuse Fund; and Direct Staff to Apply for a Permit Modification to Reduce Landfill Operating Days From Seven to Five Days Per Week CMR 356:10 and ATTACHMENT PROTEST LETTERS PUBLIC COMMENT 5. Direction to Staff Regarding High Speed Rail Issues and Adoption of a Resolution Regarding High Speed Rail PACKET ADDENDUM ATTACHMENT CLOSED SESSION Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 6. Discuss Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(c): Initiation of Litigation in the Matter of City of Palo Alto; Town of Atherton, a Municipal Corporation, Planning and Conservation League, a California Nonprofit Corporation, City of Menlo 3 09/20/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Park, a Municipal Corporation, Transportation Solutions Defense and Education Fund, a California Nonprofit Corporation, California Rail Foundation, a California Nonprofit Corporation, and Other Similarly Situated Entities, v. California High Speed Rail Authority, a Public Entity ATTACHMENT PUBLIC COMMENT COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS Members of the public may not speak to the item(s). ADJOURNMENT Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance. 1 CITY OF PALO ALTO PROCLAMATION Leadership in Energy and Environmental Design (LEED) Existing Building Award for 525 University Avenue, Palo Alto WHEREAS, the LEED for Existing Buildings Rating System helps building owners and operators measure operations, improvements and maintenance on a consistent scale, with the goal of maximizing operational efficiency while minimizing environmental impacts; and WHEREAS, LEED for Existing Buildings addresses whole-building cleaning and maintenance issues (including chemical use), recycling programs, exterior maintenance programs, and systems upgrades; and WHEREAS, the owners of 525 University Avenue, which is the largest office building in downtown Palo Alto, began the process of becoming an energy efficient building in the mid 1990s with large scale projects like light retro fits, elevator modernizations and new chillers and boilers; and WHEREAS, the owners and building management have worked diligently to reduce building waste by increasing their efforts to recycle, and as a result have cut the trash removal costs by 66%; and WHEREAS, the owner’s and building management have been awarded the Green Business Certification from the County of Santa Clara; and WHEREAS, the building has achieved an ENERGY STARTM rating of 93, which is the 43rd percentile above the national median, and earned 17 LEED points to the project; and WHEREAS, the tenants of 525 University Avenue have saved over $1 million in operating expenses as a direct result of the large-scale projects that the owners implemented; and WHEREAS, with ongoing commitment by the owners, C.M. Capital Corporation improved efficiency and reduced their impact on the environment. Due to their commitment the building was awarded a LEED EB Silver award, it also became the first LEED EB Silver awarded building in Palo Alto. NOW, THEREFORE, I, Patrick Burt, Mayor of the City of Palo Alto, on behalf of the City Council do hereby recognize C.M. Capital Corporation for its dedication to building and operational improvements and congratulate the owners of 525 University Avenue for the exemplary example of a sustainable building in Palo Alto. Presented: September 20, 2010 ______________________________ Patrick Burt Mayor of Palo Alto TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: September 20, 2010 CMR:361:10 REPORT TYPE: CONSENT SUBJECT: Approval of Council Appointed Officers Committee Recommendation to Authorize City Auditor Leave of Absence RECOMMENDATION Staff recommends that the Council approve the Council Appointed Officers (CAO) Committee recommendation to authorize the City Auditor to take a leave of absence from October 18,2010 to April 17, 20ll. DISCUSSION On September 7th, 2010, the CAO Committee discussed and approved a request by the City Auditor to take a leave of absence for a six-month period from October 18,2010 to April 17, 2011. Federal and State Family Medical Leave law requires the City to grant leaves of absence for at least three and up to four months, if qualified. At this time, the Auditor meets the eligibility requirements for at least three months protected leave. However, leaves of absence beyond protected periods are discretionary. City of Pal 0 Alto Merit Rule section 801 allows unpaid leaves when leave of absence is not contrary to the best interests of the City. In this case, the City Auditor is requesting additional leave in an unpaid status beyond the protected leave periods under the Merit Rules provision. Because the Auditor is appointed by the Council and her contract does not address unpaid leave, this request requires the authorization of the City Council. With this understanding, the CAO Committee recommended approval of additional unpaid leave for the City Auditor with a return date of April 17th, 2011 for a total absence of six months. The Department of Human Resources has reviewed the request and concurs with the recommendation of the committee. CMR:361:10 Page lof2 Attachment A: CAO Committee Meeting Minutes from 09/07/10, Item 2) Consideration of Request of City Auditor Maternity Leave and Appointment of Acting City Auditor . r) (C·~· DEPARTMENTHEAD:.~ ___ ~~'~.~~~~./~ .. ·~~~~~~ .. =·==~, ________ ___ Russell Carlsen Director of Hmnan Resources CITY MANAGER APPROVAL:~_-r:-+-.L.<.-'--~'f-~jIC-___ _ CMR:361:10 Jame City Page2of2 ATI'ACHMENT A CITY COUNCIL COUNCIL APPOINTED OFFICERS COMMITTEE Special Meeting September 07, 2010 The Council Appointed Officers Committee of the CIty of Palo Alto met on this date In the Council Conference Room at 6:04 p.m. Present: Espinosa, Klein, Price, Scharff Absent: ORAL COMMUNICATIONS Mark Petersen-Perez, Palo Alto spoke regarding First Amendment Rights of speech. Herb .Borock, Palo Alto spoke regarding Brown Act issues with the CAO Committee. ACTION ITEMS 1. Review Proposals from Executive Search Firms Related to the City Attorney Recruitment. Director of Human Resources, Russ Carlsen spoke regarding the outreach done and the proposals received from executive search firms related to the City Attorney recruitment. He stated that there were eight responses received. Chair Klein said the Committee had a great deal of weIght to choose a path. When they chose the City Manager the committee narrowed down the consultant applicants. The full Council then voted on the City Manager. They had Jess involvement In the City Auditor recruItment. He said those were two different procedures. Mark Petersen-Perez said the City Attorney should do more than protect the City against litigation. But he should also protect the people. 09/07/10 I i i J i I ! City Manager, James Keene spoke regarding things that the CAO Committee should look at when reviewing and selecting the firm to conduct the search. Mr. Carlsen agreed that the reputation of the recruiter is critical. Mr. Keene spoke about the public's perception and thoughts about who the Council would hire as the recruiter. . Council Member Scharff asked if there was anyone that should be eliminated from the list of applicants based on reputation. He also asked about their strengths and weaknesses. Mr. Carlsen said they have had positive experiences with several of the recruiters. Of the organizations that have the most experience, it's a profession, they know how far to reach out to get applicants. He stated he had concerns, there are a couple of firms that he has not worked with and so doesn't know about them, and they should all be fairly close in their costs. He stated the City can negotiate the costs especially in the area of the brochures and stuff. Council Member Scharff asked if the principal person representing the firms are available for the next step. Mr. Carlsen advised that they have spoken with them and they have Indicated that would be available to continue in the process/ especially over the next several weeks. CounCil Member Scharff asked for clarification on whether the principal person of the firm would be conducting the recruitment personally. Chair Klein stated that he felt the person who is conducting the search/ whether it 15 the principal person or someone else, they should also be present at the intervIew. Mr. Carlsen stated that would be what they expected. Chair Klein stated he had two suggestions, one would be to discuss the eight firms that applied and the other ,would be to do a ballot similar to the way Board and CommiSSion applicants are voted on. Council Member Scharff asked whether they would vote on the firm to do It/ or several to interview. 2 09/07/10 i J J i ! j Chair Klein stated his suggestion Is to vote for three to Interview. They would then give these to Council to interview. Council Member Scharff stated he would like to meet the applicants and then suggest to Council on who to recommend. Chair Klein stated that Interviews would be conducted at the Council level. Council Member Scharff stated he wants to interview a selection of them. Chair Klein stated that it would then be a two interview process. The CAD committee needs to whittle It down to a smaller group for Council to Interview. . Council Member Scharff asked staff if they would have three or four firms to recommend. Chair Klein stated he feels awkward about doing It that way, as there should be a separation of powers, and this should independent of staff's desires for a firm. Mr. Carlsen said he did have reservations regarding several of the applicants. He stated at some point he would like let Council know about his concerns with several of the firms. Council Member Espinosa stated that If staff has serious reservations about the firms then the Committee and Council should be made aware of them. Mr. Carlsen stated that JuriStaff does not have a lot of experience In the public sector. Mr. Keene said he was not famIliar with one of the firms. He had dealt with some non public secto( recruiters in a public sector position and It had been problematic. He said the Committee should consider what the Council was looking for. Chair Klein said a lawyer that had practiced CA Municipal law should be what they are looking for. City Clerk, Donna Grider read the results of the ballot: Council Member Scharff: Avery Associates, Ralph Anderson & AsSOCiates, Bob Murray & Associates 3 09/07/10 Coundl Member Price: Bob Murray &. Associates, Ralph Anderson &. Associates Chair Klein: Avery Associates, Bob Murray & Associates, Ralph Anderson & Associates Vice Mayor Espinosa: Avery ASSOCiates, Ralph Anderson & Associates, Bob Murray & Associates Ms. Grider announced that the three firms for Council to interview would be Avery Assodates, Bob Murray & Associates, Ralph Anderson &. Associates. Mr. Keene confirmed that they were going to schedule Interviews before the full Council at a Council Meeting. Chair Klein said they should look at the September 13th and September 20th as pOSSibilities. Mr. Carlsen stated that his suggestion is for September 20th• Chair Klein stated the date would be dependent upon the Council agenda for that night. Mr. Keene asked how long the interviews might take. Chair Klein stated he felt it would last 60-90 minutes, giving each candidate 20 minutes for their interview. Mr. Carlsen suggested a speCial meeting in the Council conference room. Chair Klein agreed and suggested 6:00 p.m. Mr. carlsen said that would be best to allow a solid conversation Chair Klein said they would need to vote in a public meeting because it wasn't a personnel matter. Council Member Price asked if It was appropriate to ask major Questions· toward the candidates at this time. Mr. Carlsen said he could check with the Attorney's Office. 4 09/07/10 Council Member Price questioned the number of hours proposed by Avery. She had a concern about the number of hours compared to.the other applicants. Mr. Carlsen said often they ask for additional services, so It was up to the Council to determine the number of hours. Council Member Price stated if you translate the hours into weeks, it was a large amount of hours. Council Member Espinosa asked if there is a lesson learned here about reaching out to finms to get the best applying for these. Mr. Carlsen stated that staff did a broader search for firms, Including a national site. He felt that we did a better outreach. He stated that some firms simply don't apply for one reason or another. Council Member Price stated she believes the economy plays into why firms apply or don't apply. 2. Consideration of Request of City Auditor Maternity Leave and Appointment of Acting City Auditor. City Auditor, Lynda Brouchoud stated she was here to discuss her request for leave of absence and her request to bring In an Acting City Auditor while she Is on leave. Chair Klein confirmed his understanding that the City's policy was for a total of 6 months, and not 6 months prenatal and 6 months postpartum. Ms. Brouchoud read the City's Merit System Rules on maternity leave, stating they read "Non-disability prenatal and/or postpartum leave Is available under this provision, but such hilave shall not begin more than 6 months prenatal nor extend more than 6 months postpartum." Chair Klein asked for clariflcation on whether it was 3 months prenatal and 3 months postnatal. Ms. Brouchoud stated she believes that it reads 6 months before and 5 months afterwards. Chair Klein asked for clarification on the agreement that she would take a total of 6 months leave, within the 12 month period. 5 09/07/10 City Manager, James Keene asked whether It could be a year. Chair Klein stated his interpretation was different. Council Member Price asked for clarification on how it relates to the Family Medical Leave Act. Council Member Scharff stated that was a separate Issue. Chair Klein stated that he believes that that states 6 months also. Assistant Director of Human Resources, Sandra Blanch said there were various rules that overlap. The City Auditor read the City Merit Rules provision .which shall not begin no more than 6 months prenatal, nor extend more than 6 months postpartum. She noted that that has not been the practice. Chair Klein stated that he and Ms. Brouchoud had spoken and had agreed that It would be a total of 6 months. Ms. Brouchoud stated that there is the non-disability and the disability part that speaks to 4 months. She stated she was not looking to go on disability. Mr. Keene stated that the way he read it, It cannot begin more than 6 months before, nor extend more than 6 months after. It Isn't specific about the amount of time. Ms. Brouchoud stated that if the concern was that it was more than 6 months than she could delete 3 weeks off of it on the end. Chair Klein stated that was consistent with his Interpretation based on the meeting with Ms. Brouchoud. Council Member Price recommended deferring action on this until there Is a clear interpretatIon of the language. Ms. Blanch stated that Ms. Brouchoud's request Is for 6 months postpartum. Chair Klein stated there has to be a decision made due to the need to get an acting auditor prior to Ms. Brouchoud's leave in October. Council Member Price stated that if there can be clarification within 2-3 days, that she felt they could make a better decision. ·6 09/07/10 Mr. Keene asked if there is more Information available that HR might have. Ms. Blanch stated that there is also the Family Medical Leave (FMLA) which states 3 months. Chair Klein noted that the City's rules provided more time than FMLA Ms. Blanch agreed. Chair Klein asked Ms. Brouchoud to clarify the amount of time she was requesting. Ms. Brouchoud stated she would, like the 6 months afterward, but that she would like to take some time before to prepare. Chair Klein agreed. Ms. Blanch confirmed that her request was for 3 weeks prior to the expected bl rth date. Council Member Price asked if staff had a clear Interpretation of the rules. MS. Blanch stated It was an unusual request to take 6 months postpartum, however, the understanding of the merit rules states that is possible. Past practice has been to allow time off prenatal, and then work with the employee postpartum. Chair Klein stated he did not agree. He asked If the employee left 1 month prenatal, would the rules then allow her to take an additional 6 months postpartum. Ms. Blanch stated yes per the merit rules, however this is not a typical request. Chair Klein stated that rules need to be reviewed. Vice Mayor Espinosa asked for clarification that our rules currently allow an employee to take 5 months prenatal and 6 months postnatal. MS. Blanch answered yes. Council Member Espinosa reconfirmed that that is currently allowed. 7 09/07/10 I I I I j , Mr. Keene asked for clarification that there are rules that state there Is a certain amount of time that an employee can take prenatal and postnatall that some has been past practice, or the fact that Council has the discretIon to decide. Council Member Scharff asked who writes and interprets the Merit Rules. Ms. Blanch stated they are drafted with HR and legal staff. They are then reviewed by the bargaining units before going to Council for approval. Council Member Scharff asked if there was any formal written Interpretation as to whether it was 5 or 12 months total. Ms. Blanch stated not in writingl only in the Merit Rules. Council Member Espinosa stated normally it is 6 months. Council Member Scharff stated he felt 12 months was a long time. Ms. Blanch stated that the rules also apply to Public Safety personnel. Chair Klein stated this is non-disability. Council Member Price asked for confirmation what the rules state and does Ms. Brouchoud/s request fall within the rules. She felt the rules needed to be clarified so that every case isn't brought before Council. MS. Blanch confirmed that what Council Member Price was looking for was clarification on the Federal{ Statel as compared to our Merit System Rules. Mr. Keene stated that staff needs to provide the Council with our pOlicy parameters and practice so they can make an informed decision. Ms. Brouchoud stated that to assist with the decision tonlghtl she would agree to begin her leave on October 181 2010, and lasting for 6 months. Council Member Price stated that she did not want Ms. Brouchoud to change her plans tonight due to the confusion regarding the policy. Howeverl if she felt comfortable wIth her statement that was ok. Mr. Carlsen stated that the rules allow it and there is a provision to grant thIs request. He stated that it is usually not done that waYI and staff works with the employee to have them return soonerl or at least part-time as soori as possible. 8 09/07/10 Chair Klein stated that he heard Ms. Blanch state it was one year. Mr. Carlsen stated that the clear answer Is that there is a provision to grant Ms. Brouchoud's request, Chair Klein stated that Ms. Brouchoud is here because she does not report to the City Manager, and so there are no rules in that sense, only the Federal and State rules. Those rules grant less leave time. Mr, Carlsen asked for clarIfication if the Merit Rules apply to all employees. Ms. Blanch stated she believed they did. Council Member Price asked if there was language within Ms. Brouchoud's contract that covered this. Ms. Brouchoud states that she follows the Management and Professional Compensation Pian and the Merit Rules, similar to other employees. She recommended that her leave begin on October 18, 2010, and end 6 months after that date so that the COmmIttee could move forward with a decision. She stated that her primary concern was to make sure the Council has adequate time to hire an acting auditor before her leave begins. She wants to insure thather office Is fUlly prepared for her leave. MOTION: Council Member Scharff moved, seconded by Council Member Price to accept her leave beginning on October 18, 2010 and ending 6 months later. MOTION PASSED: 4-0 Chair Klein confirmed that her maternity leave would be without salary, except for from vacation leave, etc. CouncU Member Scharff asked if the CAO Committee can have Staff look into this and if necessary change the rules. He felt 1 year was a long time. Mr. Keene stated Staff would look into this, respond with a memo and if necessary agendize it at a later date. He asked for clarification that if there was a need to change,her leave date due to unanticipated circumstances was that possible. Chair Klein answered yes. 9 09/07/10 Mr. Carlsen stated that she has the option to use her leave balances during this, however, she is choosing to take her leave without pay. Ms. Brouchoud stated that the leave is unpaid, no salary, but she can take her accumulated leave time. Ms. Brouchoud stated that the Auditor's Office had several reports that were either in the works or close to completion, and if there was not someone there to coordinate this, Council may not receive the reports. Council Member Espinosa asked how she would structure the department If there was not an Acting City Auditor. Ms. Brouchoud stated the Auditors Office does not have a deputy position, and that at the time she was hired there was no one in charge. This caused some problems as Staff did not have someone to oversee their work. She stated that was another option and there are probably more. Her preference Is to get someone in to oversee the office. Council Member Espinosa asked if there IS the potential to have the interim or acting come from within the department. Ms. Brouchoud stated that would be taking a Senior Auditor up two steps and it is her recommendation to bring someone in who was either a Deputy City Auditor or in a similar position. Chair Klein asked it Ms. Brouchoud had someone In mind for the position. Ms. Brouchoud stated that there is someone she could refer to the Committee. MOTION: Council Member Council Member Scharff moved, seconded by Chair Klein to hire a temporary person. Council Member Scharff stated the referral Is good, however thought should be given to the referral. Chair Klein stated he agreed with that. He said Staff should check with a variety of people and should not hire a recruiter for this. Council Member Espinosa asked if there was a way to have a truncated announcement or someplace to list this so that it is open to more applicants. He stated he wanted to Insure that If there was someone who Is Interested they would get the notification. 10 09/07/10 Ms. 8rouchoud stated there is an association for auditors and there are a couple of places to advertise. Council Member Scharff stated that due to the time frame this needed to move quickly. Mr. Keene suggested that there might be agencies that have Interested people who have public service background that might be interested in a temporary position. There might be agencies that have Auditors, Deputy City Auditors or retirees that might be Interested. Council Member Price stated that Staff should look at all options. Chair Klein wanted to Insure that Staff could get this online within the week and set the deadline of September 24, or October 1, 2010. Council Member Price stated that it would make it easy if they accepted Ms. Srouchoud's recommendation. MOTION PASSED: 4-0 3. 2010 -2011 Compensation for City Manager, City Clerk and City Auditor. Chair Klein stated he put this on the agenda and that there should be no change in their compensation and It should follow the SEIU contract. Due to the City Attomey retirfng that position Is not being Included in this. MOTION: Chair Klein moved, seconded by Council Member Council Member Scharff to make no changes in compensation, to follow the SEIU contract for the City Auditor, City Clerk, and City Manager. Mark Petersen-Perez spoke regarding his employee performance reviews and how he used that In their compensation. Council Member Espinosa spoke about how pay is usually tied to performance, and that the evaluations of our Council Appointed Officers spoke for themselves. He appreciates the hard work that they put In daily and he knows how hard they work. He stated his is sorry that due to the economy they cannot offer raises to them or to the rest of the City Staff. Council Member Scharff stated he agreed with Vice Mayor Espinosa and that he also felt they did a great job. 11 09/07/10 MOTION PASSED: 4-0 ADJOURNMENT; The meeting adjournedet 7:11 p.m. 12 09/07/10 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: September 20, 2010 CMR:360:10 REPORT TYPE: ACTION ITEM SUBJECT: Approval of Recruitment for Acting City Auditor RECOMMENDA nON Council Appointed Officers Committee (CAO Committee) recommends that City Council direct staff to conduct an outreach to identify candidates for Acting City Auditor. DISCUSSION On September 7, 20 I 0, the CAO Committee recommended that staff conduct a "swift and efficient" outreach to identify someone who can serve as acting City Auditor during the six month period when the current City Auditor will be on leave from October 18, 20 I 0 to April 17,2011. During this time period of the requested .leave, the City Auditor's Offlce has a number of reports to issue, including the City's Fiscal Year 2010 audited financial statements and the Fiscal Year 2010 Service Efforts and Accomplishments Report. Given the workload demands, the CAO Committee recommends appointing an Acting City Auditor to temporarily assume the same duties and responsibilities during the City Auditor's leave of absence. The salary for this Acting City Auditor will be paid from salary savings. Postings for the Acting City Auditor position, with a deadline of October I, 20 I 0, will commence immediately after City Council has approved this recommendation Attachment A: CAO Committee Meeting Minutes from 09/07!.I 0, Item 2) Consideration of Request of City Auditor Maternity Leave and Appointment of Acting City Auditor 0r DEPARTMENTHEAD: _____ ~~\:2~.~-~\::~e~~~.~ .. ~~~~==~--------- Russell Carlsen Director of Human Resources CITY MANAGER APPROV AL: __ '7"'7=-.."-'->'-'--,F--J"f"---:I"'-'--____ _ Ci CMR:360.10 Page lof 1 AITACHMENT A CITY COUNCIL COUNCIL APPOINTED OFFICERS COMMITTEE Special Meeting September 07, 2010 The Council Appointed Officers Committee of the City of Palo Alto met on this date In the Council Conference Room at 6:04 p.m. Present: Espinosa, Klein, Price, Scharff Absent: ORAL COMMUNICATIONS Mark Petersen-Perez, Palo Alto spoke regarding First Amendnient Rights of speech. Herb .Borock, Palo Alto spoke regarding Brown Act issues with the CAO Committee. ACTION ITEMS 1. Review Proposals from Executive Search Firms Relatecl to the City Attorney Recruitment. Director of Human Resources, Russ Carlsen spoke regarding the outreach clone and the proposals received from executive search firms related to the City Attorney recruitment. He stated that there were eight responses received. Chair Klein said the Committee had a great deal of weight to choose a path. When they chose the City Manager the committee narrowed clown the consultant applicants. The full Council then voted on the City Manager. They had less involvement In the City Auditor recruitment. He said those were two different procedures. Mark Petersen-Perez saicl the CJl:y Attorney should do more than protect the City against litigation. But he shoulcl also protect the people. 09/07/10 ! i j j City Manager, James Keene spoke regarding things that the CAO Committee should look at when reviewing and selecting the firm to conduct the search. Mr. Carlsen agreed that the reputation of the recruiter is critical. Mr. Keene spoke about the public's perceptIon and thoughts about who the Council would hire as the recruiter. Co uncI! Member Scharff asked if there was anyone that should be eliminated from the list of applicants based on reputation. He also asked about their strengths and weaknesses. Mr. Carlsen said they have had positive experiences with several of the recruiters. Of the organizations that have the most experience, it's a profession, they know how far to reach out to get applicants. He stated he had concerns, there are a couple of firms that he has not worked with and so doesn't know about them, and they should all be fairly close in their costs. He stated the City can negotiate the costs especially in the area of the brochures and stuff. Council Member Scharff asked if the prIncipal person representing the firms are available for the next step. Mr. Carlsen advised that they. have spoken with them and they have Indicated that would be available to continue in the process, especially over the next several weeks. Council Member Scharff asked for clarification on whether the principal person of the firm would be conducting the recruitment personally. Chair Klein stated that he felt the person who is conducting the search, whether it Is the principal person or someone else, they should also be present at the interview. Mr. Carlsen stated that would be what they expected. Chair Klein stated he had two suggestions, one would be to discuss the eight firms that applied and the other ,would be to do a ballot similar to the way Board and CommiSSion applicants are voted on. Council Member Scharff asked whether they would vote on the firm to do It, or several to interview. 2 09/07/10 j I i Chair Klein stated his suggestion Is to vote for three to Interview. They would then give these to Council to Interview. Council Member Scharff stated he would like to meet the applicants and then suggest to Council on who to recommend. Chair Klein stated that Interviews would be conducted at the Council level. Council Member Scharff stated he wants to interview a selection of them. ChaIr Klein stated that it would then be a two interview process. The CAD committee needs to whittle It down to a smaller group for Council to interview. . Council Member Scharff asked staff if they would have three or four firms to recommend. ChaIr Klein stated he feels awkward about doing It that way, as there should be a separation of powers, and this should independent of staff's desires for a firm. Mr. Carlsen said he did have reservations regarding several of the applicants. He stated at some point he would like let Coundl know about his concerns with several of the firms. Council Member Espinosa stated that If staff has serious reservations about the firms then the Committee and Council should be made aware of them. Mr. Carlsen stated that JuriStaff does not have a lot of experience in the public sector. Mr. Keene said he was not familiar with one of the firms. He had dealt with some non public sector recruiters in a public sector position and It had been problematic. He said the Committee should consider what the Counci! was looking for. Chair Klein said a lawyer that had practiced CA Municipal law should be what they are looking for. City Clerk, Donna Grider read the results of the ballot: Council Member Scharff: Avery Associates, Ralph Anderson & Associates, Bob Murray & Associates 3 09/07/10 Council Member Price: Bob Murray &. Associates, Ralph Anderson &. Associates Chair Klein: Avery Associates, Bob Murray &. Associates, Ralph Anderson &. Associates Vice Mayor Espinosa: Avery Associates, Ralph Anderson &. Associates, Bob Murray &. Associates Ms. Grider announced that the three firms for Council to interview would be Avery Associates, Bob Murray &. Associates, Ralph Anderson &. Associates. Mr. Keene confirmed that they were going to schedule Interviews before the full Council at a Council Meeting. Chair Klein said they Should look at the September 13th and September 20th as possibilities. Mr. Carlsen stated that his suggestion Is for September 20th• Chair Klein stated the date would be dependent upon the Council agenda for that nig ht. Mr. Keene asked how long the interviews might take. Chair Klein stated he felt it would last 50-90 minutes, giving each candidate 20 minutes for their interview. Mr. Carlsen suggested a special meeting In the Council conference room. Chair Klein agreed and suggested 6:00 p.m. Mr. carlsen said that would be best to allow a solid conversation Chair Klein said they would need to vote in a public meeting because it wasn't a personnel matter. Council Member Price asked if It was appropriate to ask major questions· toward the candidates at this time. Mr. Carlsen said he could check with the Attomey's Office. 4 09/07/10 Council Member Price questioned the number of hours proposed by Avery. She had a concern about the number of hours compared tothe other applicants. Mr. Carlsen said often they ask for addittonal services, so It was up to the Council to determine the number of hours. Council Member Price stated if you translate the hours into weeks, it was a large amount of hours. Council Member Espinosa asked if there is a lesson learned here about reaching out to firms to get the best applying for these. Mr. Carlsen stated that staff did a broader search for firms, Including a national site. He felt that we did a better outreach. He stated that some firms simply don't apply for one reason Or another. Council Member Price stated she believes the economy plays into why firms apply or don't apply. 2. Consideration of Request of City Auditor Maternity Leave and Appointment of Acting City Auditor. City Auditor, Lynda Brouchoud stated she was here to discuss her request for leave of absence and her request to bring In an Acting City Auditor while she Is on leave. Chair Klein confirmed his understanding that the City's policy was for a total of 6 months, and not 6 months prenatal and 6 months postpartum. Ms. Brouchoud read the City's Merit System Rules on maternity leave, stating they read "Non-disability prenatal and/or postpartum leave Is available under this provision, but such leave shall not begin more than 6 months prenatal nor extend more than 6 months postpartum:' Chair Klein asked for clarification on whether it was 3 months prenatal and 3 months postnatal. Ms. Brouchoud stated she believes that it reads 6 months before and 6 months afterwards. Chair Klein asked for clarification on the agreement that she would take a total of 6 months leave, within the 12 month period. 5 09/07/10 City Manager, James Keene asked whether it could be a year. Chair Klein stated his interpretation was different. Council Member Price asked for clarification on how It relates to the Family Medical Leave Act. Council Member Scharff stated that was a separate Issue. Chair Klein stated that he believes that that states 6 months also. Assistant DIrector of Human Resources, Sandra Blanch said there were various rules that overlap. The City Auditor read the City Merit Rules provision which shall not begin no more than 6 months prenatal, nor extend more than 6 months postpartum. She noted that that has not been the practice. Chair Klein stated that he and Ms. Brouchoud had spoken and had agreed that It would be a total of 6 months. Ms. Brouchoud stated that there Is the non-disability and the disability part that speaks to 4 months. She stated she was not looking to go on disability. Mr. Keene stated that the way he read it, It c:annot begin more than 6 months before, nor extend more than 6 months after. It Isn't specific about the amount of time. Ms. Brouchoud stated that if the concern was that it was more than 6 months than she could delete 3 weeks off of it on the end. Chair Klein stated that was consistent with his Interpretation based on the meeting with Ms. Brouchoud. Council Member Price recommended defenrlng action on this until there Is a clear interpretation of the language. Ms. Blanch stated that Ms. Brouchoud's request Is for 6 months postpartum. Chair Klein stated there has to be a decision made due to the need to get an acting auditor prior to Ms. Brouchoud's leave in October. Council Member Price stated that if there can be clarification within 2-3 days, that she felt they could make a better decision. ·6 09/07/10 Mr. Keene asked if there is more Information available that HR might have. Ms. Blanch stated that there is also the Family Medical Leave (FMLA) which states 3 months. Chair Klein noted that the City's rules provided more time than FMLA Ms. Blanch agreed. Chair Klein asked Ms. Brouchoud to clartfy the amount of time she was requesting. Ms. Brouchoud stated she would, like the 6 months afterward, but that she would like to take some time before to prepare. Chair Klein agreed. Ms. Blanch confirmed that her request was for 3 weeks prior to the expected blrthdate. Councfl Member Price asked if staff had a clear Interpretation of the rules. Ms. Blanch stated It was an unusual request to take 6 months postpartum, however, the understanding of the merIt rules states that is possible. Past practice has been to allow time off prenatal, and then work with the employee postpartum. Chair Kle1n stated he did not agree. He asked if the employee left 1 month prenatal, would the rules then allow her to take an additional 6 months postpartum. Ms. Blanch stated yes per the merit rules, however this is not a typical request. Chair Klein stated that rules need to be reviewed. Vice Mayor Espinosa asked for clarification that our rules currently allow an employee to take 5 months prenatal and 5 months postnatal. MS. Blanch answered yes. Council Member Espinosa reconfirmed that that is currently allowed. 7 09/07/10 I 1 I Mr. Keene asked for clarification that there are rules that state there Is a certain amount of time that an employee can take prenatal and postnatall that some has been past practice, or the fact that Council has the discretion to decide. Council Member Scharff asked who writes and interprets the Merit Rules. Ms. Blanch stated they are drafted with HR and legal staff. They are then reviewed by the bargaining units before going to Council for approval. Council Member Scharff asked if there was any formal written Interpretation as to whether it was 5 or 12 months total. Ms. Blanch stated not in writingl only in the "'lerit Rules. Council Member Espinosa stated normally it is 6 months. Council Member Scharff stated he felt 12 months was a long time. Ms. Blanch stated that the rules also apply to Public Safety personnel. Chair Klein stated this is non-disability. Council Member Price asked for confirmation what the rules state and does Ms. Brouchoud/s request fall within the rules. She felt the rules needed to be clarified so that every case isn't brought before Council. MS. Blanch conflrmed that what Council Member Price was looking for was c1arlflcatlon on the Federall State, as compared to our Merit System Rules. Mr. Keene stated that staff needs to provide the Council with our policy parameters and practice 50 they can make an Informed decision. Ms. Brouchoud stated that to assist with the decision tonightl she would agree to begin her leave on October 181 2010, and lasting for 6 months, Council Member Price stated that she did not want Ms. Brouchoud to change her plans tonight due to the confusion regarding the policy. Howeverl if she felt comfortable with her statement that was ok. Mr. Carlsen stated that the rules allow it and there is a provision to grant this request. He stated that it is usually not done that waYI and staff works with the employee to have them return soonerl or at least part-time as soori as possible. B 09/07/10 Chair Klein stated that he heard Ms. Blanch state it was one year. Mr. Carlsen stated that the clear answer Is that there Is a provision to grant Ms. Brouchoud's request. Chair Klein stated that Ms. Brouchoud Is here because she does not report to the City Manager, and so there are no rules in that sense, only the Federal and State rules. Those rules grant less leave time. Mr. Carlsen asked for clarIfication If the Merit Rules apply to all employees. Ms. Blanch stated she belJeved they did. Council Member Price asked if there was language within Ms. Brouchoud's contract that covered this. Ms. Brouchoud states that she follows the Management and Professional Compensation Plan and tile Merit Rules, similar to other employees. Sne recommended that her leave begin on October lS, 2010, and end 6 months after that date so that the COmmittee could move forward with a decision. She stated that her primary concern was to make sure the Council has adequate time to hire an acting auditor before her leave begins. She wants to insure thather office Is fUlly prepared for her leave. MOTION: Council Member Scharff moved, seconded by Council Member Price to accept her leave beginnIng on October lS, 2010 and ending 6 months later. MOTION PASSED: 4-0 Chair Klein confirmed that her maternity leave would be without salary, except for from vacation leave, etc. CouncH Member Scharff asked if the CAO Committee can have Staff look into this and if necessary change the rules. He felt 1 year was a long time. Mr. Keene stated Staff would look into this, respond with a memo and if necessary agendize it at a later date. He asked for clarification that if there was a need to change,her leave date due to unanticipated circumstances was that possible. Chair Klein answered yes. 9 09/07/10 Mr. Carlsen stated that she has the option to use her leave balances during this, however, she is choosing to take her leave without pay. Ms. Brouchoud stated that the leave Is unpaid, no salary, but shi? can take her accumulated leave time. Ms. Brouchoud stated that the Auditor's Office had several reports that were either In the works or close to completion, and if there was not someone there to coordinate this, Council may not receive the reports. Council Member Espinosa asked how she would structure the department If there was not an Acting City Auditor. Ms. Brouchoud stated the AudItor's Office does not have a deputy position, and that at the time she was hired there was no one In charge. This caused some problems as Staff did not have someone to oversee their work. She stated that was another option and there are probably more. Her preference Is to get someone in to oversee the office. Council Member Espinosa asked If there Is the potential to have the interim or acting come from within the department. Ms. Brouchoud stated that would be taking a Senior Auditor up two steps and it is her recommendation to bring someone in who was either a Deputy City Auditor or In a similar position. Chair Klein asked if Ms. Brouchoud had someone In mind for the position. Ms. Brauchoud stated that there is someone she could refer to the Committee. MOTION: Council Member Council Member Scharff moved, seconded by Chair Klein to hire a temporary person. Council Member Scharff stated the referral Is good, however thought should be given to the referral. Chair Klein stated he agreed with that. He said Staff should check with a variety of people and should not hire a recruiter for this. Council Member Espinosa asked if there was a way to have a truncated announcement or someplace to list this so that it is open to more applicants. He stated he wanted to Insure that If there was someone who Is Interested they would get the notification. 10 09/07/10 Ms. Brouchoud stated there is an association for auditors and there are a couple of places to advertise. Council Member Scharff stated that due to the time frame this needed to move Ciulckly. Mr. Keene suggested that there might be agencies that have Interested people who have public service background that might be interested In a temporary position. There might be agenCies that have Auditors; Deputy City Auditors or retirees that might be Interested. Council Member Price stated that Staff should look at all options. Chair Klein wanted to Insure that Staff could get this online within the week and set the deadline of September 24, or October 1, 2010. Council Member Price stated that it would make it easy if they accepted Ms. Brouchoud's recommendation. MOTION PASSED: 4-0 3. 2010 -2011 Compensation for City Manager, City Clerk and City Auditor. Chair Klein stated he put this on the agenda and that there should be no change in their compensation and It should follow the SeIU contract. Due to the City Attomey retiring that position Is not being Included in this. MOTION: Chair Klein moved, seconded by Council Member Council Member Scharff to make no changes in compensation, to follow the SEIU contract for the City Auditor, City Clerk, and City Manager. Mark Petersen-Perez spoke regarding his employee performance reviews and how he used that in their compensation. Council Member Espinosa spoke about how pay is usually tied to performance, and that the evaluations of our Council Appointed Officers spoke for themselves. He appreciates the hard work that they put In daily and he knows how hard they work. He stated his is sorry that due to the economy they cannot offer raises to them or to the rest of the Qty Staff. Council Member Scharff stated he agreed with Vice Mayor Espinosa and that he also felt they did a great job. 11 09/07/10 MOTION PASSED: 4-0 ADJOURNMENT; The meeting adjourned at 7:11 p.m. 12 09/07/10 TO: HONORABLE CITY COUNCIL 4 FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: SEPTEMBER 20, 2010 CMR:356:10 REPORT TYPE: ACTION SUBJECT: Public Hearing: From Finance Committee: Adopt a Resolution Amending the Utility Rate Schedules R-l, R-2, and R-3 for a Refuse Rate Increase; Adopt Budget Amendment Ordinance for Fiscal Year 2011 to Adopt Municipal Fee Schedule Increases for the Palo Alto Landf'Il1 and Adjust Budgeted Revenues and Expenditures Within the Refuse Fund; and Authorize Staff to loan the Refuse Fund up to $840,000 from the General Fund RECOMMENDATION Staff recommends that Council: 1. Adopt the Resolution Amending the Utility Rate Schedules R-l, R-2, and R-3 for a Refuse Rate Increase (Attachment A); 2. Adopt the Budget Amendment Ordinance for Fiscal Year 2011 to adopt Municipal Fee Schedule Increases for the Palo Alto Landfill and Adjust Budgeted Revenues and Expenditures Within the Refuse Fund (Attachment B); and 3. Authorize Staff to loan the Refuse Fund up to $840,000 from the General Fund. BACKGROUND At the May 27, 2010 Finance Committee meeting, staff provided an update of information originally presented on April 6, 2010 (CMR:195:1O) on the status of the Refuse Fund and the need for a rate increase. On June 15,2010, staff returned to Finance Committee (CMR:281:10) with an update on the Refuse Fund, a comparison of Palo Alto's refuse rates with those of other jurisdictions, further analysis of the impacts of Zero Waste services and the economy on revenue, and proposed reductions in expenses in the Refuse Fund. At the July 6, 2010 Finance Committee meeting (CMR:301:1O), staffprovided additional information on Palo Alto's solid waste system and services, rate and revenue modeling, and options to bring the Refuse Fund to cost recovery through a combination of additional revenue sources, rate increases, and expense reductions. Oil July 20, 2010 staff presented a recommended scenario to the Finance Committee to close the FY 2011 budget shortfall that includes a proposed interim rate increase of 6 percent for residential and 9 percent for commercial customers, coupled with expense reductions. (See CMR:313:1O, Attachment C). CMR:356:10 Page 1 of8 DISCUSSION Over the past fiscal year, Public Works identified a potential shortfall in the Refuse Fund balance and mandated reserves if corrective actions were not taken. A comprehensive discussion of issues was described in CMR:301:1O to the Finance Committee on July 6,2010. The shortfall of revenues is associated primarily with the reduction in commercial customer services from the success of the implementation of compostables (food waste) collection services, and the economic downturn, which CalRecycle, formerly known as the California Integrated Waste Management Board, recently documented (Attachment D). On July 20,2010 Public Works' proposal to address the FY 2011 refuse budget was approved by the Finance Committee, with one modification, by a three to one vote. Specifically, the Finance Committee recommended that the landfill closure CIP in the amount of $600,000 not be deferred and that staff request the State to allow for the use of the funds required for landfill closure. In case the State denies the request the General Fund would lend the Refuse Fund the $600,000 plus interest set at the City's investment portfolio rate ofretum. Attachment C provides the complete report, CMR:313:1O, including the proposed Refuse Fund rate schedules R-l, R-2, and R-3. The following table summarizes the proposed budget changes for FY 2011, including all expense reductions and revenue increases as detailed in CMR:313:10. The table reflects modifications to the proposed budget changes in CMR:313:1O, including the Finance Committee's recommendation to proceed with CIP RF-llOOI Landfill Closure in the amount of $600,000 during FY 2011. As a result, this item has been removed from the table. Also, a correction has been made to reflect the deferral of reimbursement for CIP RF-10003 Drying Beds, Material Storage and Transfer Area in the amount of $375,000 as noted below. Total Fund Revenues per FY 2011 Proposed Budget $29,895,824 Changes: One-time Ongoing $5 for minican/6 percent increase for other residential 500,000 9 percent increase for commercial 1,700,000 Rent payment from Utilities for the use of former Los Altos Treatment Plant site(l) 240,000 60,000 Loan from General Fund -LA TP 240,000 Landfill gate fee increases 230,000 Landfill soil fee 250,000 Landfill gas revenue from RWQCP 350,000 730,000 2,840,000 3,570,000 Total Fund Revenues-Amended $33,465,824 CMR:356:1O Page 2 of8 Total Fund Expenditures per FY 2011 Proposed Budget Changes: Decrease in estimate for Green Waste contract Restore 0.1 FTE Engineering Tech ill (0.9 FTE allocated to CIP sidewalk repair and replacementi2) Defer CIP RF -10003 Drying Beds, Material Storage and Transfer Area(3) Decrease in landfill operations Decrease in Zero Waste Coordinator position Decrease in Zero Waste outreach One-time Ongoing (800,000) (797,178) (375,000) (122,624) (300,000) 10,883 (250,000i4): $36,889,554 (1,597,624) (1,036,295) (2,633,919). Total Fund Expenditures-Amended $34,255,635 I Cbange in Net Assets ($789,811)<') I (1) $240,000 in rent payments have been recorded at year-end FY 2010. (2) Restored at FY 2011 budget adoption. (3) The deferral ofCIP RF-10003 (Drying Beds, Material Storage, and Transfer Area) will result in one-time net savings of only $375,000, not $750,000. The reason is that the project is funded 50% by the Wastewater Collection Fund, and the interfund transfer of revenue has been moved from FY 2011 to FY 2012 revenues since the project is deferred. (4) Originally attributed to reduced landfill hours. (5) $600,000 will be paid from Landfill closure/postclosure reserve or from a loan from the General Fund. In summary, while the change in net assets for the Refuse Fund shows $789,811 deficit due to accounting practices, $600,000 of that deficit is due to the CIP project to convert Phase II A&B of the landfill for park use and the payment of that cost will be taken out of the landfill closure/postclosure reserve, or as a loan from the General Fund. The net impact to the rate stabilization reserve is projected to be $189,111 as a result. Additionally, in conjunction with $2.6 million in expense reductions, staff proposes an interim nine percent rate increase for commercial customers and a six percent increase for all residential customers except the 20 gallon mini can service level. Historically, the 20 gallon minican rate has been set well below cost recovery in order to incentivize diversion. The mini can service rate would inC(rease from $15.00 to $20.00 per month, to begin to bring this artificially low rate into alignment with the rates for other residential service levels. The increase of the minican rate will generate approximately $130,000 over the next year. The total rate increase for residential and commercial customers will generate an estimated additional $2.2 million dollars ($1.7 million CMR:356: 10 Page 3 of 8 from commercial customers and $500,000 from residential customers). The following two tables list a sample of rates for 20 gallon and 32 gallon residential service, based on a survey conducted annually by Public Works of the solid waste rates of neighboring communities. 20 Gallon Sin~le Family Rates, By City Jurisdiction FY2010Rate FY2011 Rate San Jose $25.90 same Los Altos Hills $24.20 same Palo Alto $15.00 $20.00 proposed Campbell $15.00 same Santa Clara $12.65 $13.28 Mountain View $11.95 $12.90 32 Gallon Single Family Rates, By City Jurisdiction FY2010Rate FY2011 Rate Los Altos Hills $33.77 same Palo Alto $31.00 $32.86 proposed San Jose $27.50; $31.50 w/yard same trimmings cart Sunnyvale $26.70 $28.70 Campbell $19.58 same Santa Clara $18.00 $18.90 Mountain View $17.55 $18.95 Staff is proposing an interim rate increase effective October 1, 2010, to be in effect not more than 24 months. If approved by Council, this proposed rate increase would take effect on October 1,2010 and provide the needed revenue to help close the Refuse Fund's budget shortfall for FY 2011 while a cost of service study is conducted an analysis of the Refuse rate structure completed. The Refuse Fund cost of service study is underway, and on schedule to be completed by late fall 2010, with new rate structures targeted for Council discussion in January 2011. The study will produce both a cost of service model to calculate future allocations of expenses to use in rate setting, and a new proposed rate structure for the Refuse Fund. One of the anticipated results of the cost of service study is a rate structure that no longer relies solely on rates based on garbage service levels. Additionally, the new rate structure could include fees tied directly to services, such as street sweeping, re<;:ycling, household hazardous waste collection, etc. Finally, the rate structure will provide for a better funded Rate Stabilization Reserve. Staff anticipates bringing a full evaluation of the fund and proposals for changes to the rate structure to stabilize revenue as part of the FY 2012 budget process. Additionally, since 2006, solid waste rates are subject to the notice and protest hearing procedure of Proposition 218, which requires written notice to be provided to all those subject to any proposed new or increased fee. Notices were sent to all property owners and utility customers on August 4, 2010. A public hearing on the new or increased fees must be held not less than 45 CMR:356;10 Page 4 of8 days after mailing the written notice. The September 20, 2010 Council date is the earliest opportunity to conduct the rate hearing. Hard to Serve Rate Included in the rate schedule is a fee for Hard to Serve areas in the city. A 'Hard to Serve' area is one that has limited access, such as on private streets with restricted access or alleys. In addition, physical conditions, such as narrow roadways, make the use of standard collection vehicles unsafe or create the potential for damage to property and equipment. Servicing single and multi-family residences in these areas requires specialized collection trucks, which results in higher operational costs for the additional equipment, labor, and maintenance. The 'Hard to Serve' rate for FY 2011 is $14.42 per month and potentially affects 700 residents. Hard to Serve areas in Palo Alto have created service challenges for many years. In the past, the cost of providing this special service to a limited number of customers was allocated across the entire customer base. During the last procurement process for new collection services, the Request for Proposals specifically required the proposers to provide a rate for collection from 'Hard to Serve' customers. The rate allocates appropriately the actual cost of providing the service to the specific customers receiving it, in alignment with Proposition 218. Council approved the 'Hard to Serve' Refuse fund rate as part of the GreenWaste solid waste hauling contract, and FY 2010 rate schedule, which became effective July 1,2009. Since the Hard to Serve rate was a new charge to some residents, in response to customer concerns, staff delayed implementation of the rate last fiscal year and conducted additional notification and outreach to the potentially affected customers throughout November and December 2009. However, the City was still obligated contractually to pay GreenWaste for the special services, and has been doing so since the beginning of the contract, approximately $120,000 in FY 2010. Potentially affected residents were sent two letters describing the rate and options to reduce their bill. The outreach to the 'Hard to Serve' customers was tailored to several types of customers (private street, alleyway, or steep terrain), and encouraged them to switch to a smaller garbage cart to offset the 'Hard to Serve' rate. Since the most commonly used service level is the 32 gallon, many customers still have the option of reducing to a minican. Additionally, City and GreenWaste staff has met with any interested customers and home owners associations to review their individual situations to attempt to provide alternatives to the rate. .... Hard to Serve . Number of Ways<tQ Offset , Ar~~ .... C~stomerS .. .". '.,:.' , , .. ... :BilIIncr¢~se· . Hilly terrain 70 Most customers can downsize to smaller can Private streets with restricted 213 Most customers can downsize to smaller access can Alleyways and other streets with 417 Place cart curbside (front of house), limited access subscribe to side yard servIce, or downsize to smaller can The above chart shows the break-out of Hard to Serve customers, by service area, and shows how a customer would be able to reduce the overall impact of the addition of the Hard to Serve CMR:356:10 Page 5 of8 , ' rate to their bill. Due to the operational constraints of collecting solid waste from the hilly terrain and private streets, downsizing to a smaller can is the way residents in these two areas can offset the increase in their bill. Because the homes of alleyway customers face streets where a regular collection truck drives by, they have several different options to reduce their bill, including placing their can at the street which will avoid the additional rate all together, or subscribing to back/side yard service for $3.35 per month, as proposed. The City has identified 700 Hard to Serve customers potentially subject to the rate. Currently, due to the outreach to the affected customers, 240 customers have selected other options. The remaining 460 of the identified Hard to Serve customers, out of over 21,000 residential customers, are subject to the additional rate, but many of them can still take advantage of other service options. In compliance with Proposition 218 requirements, the notification letter sent to all property owners and utility customers identified the Hard to Serve rate, included the map of the areas to which the Hard to Serve rate applies, and provided the City website location to view a list of all individual addresses in Hard to Serve areas. Palo Alto Landfill The budget proposal presented in CMR:313:10 also includes several actions that impact the Palo . Alto landfill. The first is an increase of fees at the landfill. While still competitive in the market, the changes in the gate fees will generate an additional $230,000 in FY 2011. The second element to the proposal that impacts the landfill is the initial recommendation to defer two ClP projects to FY 2012, as described in CMR: 313:10. One of those projects is to prepare Phases II A&B of the landfill to be opened to the public by undergrounding the above- ground gas and leachate collection systems in these closed sections (as well as installation of additional wells in the active Phase IIC area). The project will cost an estimated $600,000 to implement. Based on input from the Finance Committee, Public Works staff has added this project back into the budget for FY 2011 and will apply to the State to reduce the landfill closure reserve, or borrow $600,000 from the General Fund. Solid Waste System Planning Update There are many inter-related issues being evaluated and projects underway that impact the overall solid waste system. This section is intended to provide a list of these items and highlight the time line for when Public Works will be returning to Council with them for discussion and action. Item Return to Council Compost operation update and landfill options October 18, 2010 Future landfill rent discussion October 18, 2010 Landfill "trickling closure" issue October 18,2010 Cost of service study and Refuse Fund rate structure January 2011 Anaerobic digestion feasibility study update March 2011 CMR:356:10 Page 60f8 RESOURCE IMPACT State regulations require the Refuse Fund to provide financial assurance for landfill closure, maintenance and corrective action costs. Consequently, the Refuse Fund is required to maintain a cash balance of $6.7 million to cover these costs. At June 30, 2010, the cash balance in the Refuse Fund is $7.9 million. The recommended changes to the 2011 budget would net a draw of $789,811 assuming the State does allow the City to draw down $600,000 from the required funding. In order to minimize further impacts to the Refuse Fund and mitigate any cash flow issues, the Finance Committee recommended that the General Fund lend the Refuse Fund an additional $600,000 if the State does not allow the required funding draw down. This would then make the net draw to the rate stabilization reserve $189,811. Based on approval of the recommendation, the draw would then leave a cash balance in the Refuse Fund of $7.1 million. Without the proposed amendments to the FY 2011 budget, including the rate increase, the Refuse Fund risks falling out of compliance with the State landfill closure funding requirements since it would use the available cash and drop below the financial assurance amount. Staff recommends that the Refuse Fund maintain the required cash balance at all times to ensure compliance with State landfill closure funding requirements, and that steps are taken to ensure a minimum Rate Stabilization Reserve of 10 percent of revenues achieved to provide rate stability in the future. A General Fund loan of $240,000 (from LATP rental income) plus interest equal to the rate of return on the City's investment portfolio will be needed and potentially another loan of $600,000 to ensure the Refuse Fund has adequate funds for meeting the State landfill closure requirements and its current operating needs. In addition, midyear revisions to the Refuse Fund may be required depending on the actual experience of the expenditures and revenues. This could result in further reduction of budgeted expenditures or additional loans. As a result of the proposed rate increases and budget amendments, the Refuse Fund is expected to decrease the 2011 Adopted Budget deficit from a negative $6.5 million to a negative $189,811. The Rate Stabilization Reserve will still be at a negative position of $5,587,812. The deficit position is primarily due to the recognition of the landfill post closure liability as required by accounting rules, and operating losses incurred over the past two years. It is anticipated that the Rate Stabilization Reserve will return to a positive balance in future years under a subsequent rate structure to be det~rmined after a cost of service study (currently in progress) is conducted and an analysis of the refuse rate structure is completed. POLICY IMPLICATIONS Proposed changes in the use of solid waste facilities or implementation of zero waste programs may require revisions to the Baylands Master Plan, the Zero Waste Operational Plan, and municipal code. ENVIRONMENTAL REVIEW An increase in rates to meet finaricial reserve needs and operating expenses is not subject to California Environmental Quality Act (CEQA), pursuant to California Public Resources Code section 21080(b)(8) and Title 14 of the California Code of Regulations section 15273(a)(l) and (3). CMR:356:10 Page 7 of8 ATTACHMENT A Not Yet Approved ResQlution No. ---.Resolution of the Council of the City of Palo Alto Amending the Utility Rate Schedules R-I, R-2, and R-3 for a Refuse Rate Increase WHEREAS, pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the City Council may by resolution adopt rules and regulations governing utility services and the fees and charges therefore; and WHeREAS, the Council has considered the need for an adjustment in refuse collection rates' and recycling collection services to maintain .the Refuse Fund Stabilization Reserve Fund at required levels; and WHEREAS, pursuant to Article XIIID Sec. 6 of the California Constitution, on September 20, 2010 the Council of the City of Palo Alto held a public hearing to consider all protests against the proposed refuse rate fee increases; and WHEREAS, the total number of written protests presented by the close of the public hearing was less than fifty percent (50%) of the total number of customers subject to the proposed refuse rate fee increases. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-I (Domestic Refuse Collection) is hereby amended to read in accordance with Sheets R-l-l and R-I-2, attached hereto and incorporated herein. The foregomg l!tility Rate Schedules, as amended, shall become effective on October 1,2010 . . SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-2 (Commercial Refuse Collection) is hereby amended to read in accordance with Sheets R-2-1, R-2-2 and R-2-3, attached hereto and incorporated herein. The foregoing Utility Rate Schedules, as amended, shall become effective on October 1, 2010. SECTION 3. 'Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-3 (Commercial Refuse Collection) is hereby amended to read in accordance with Sheets R-3-1, R-3-2, R-3-3, R-3-4 and R-3-5 attached hereto and incorporated herein. The foregoing Utility Rate Schedules, as amended, shall become effective on October 1, 2010. SECTION 4: The rates contained in the attached Rate Schedules shall be in ,j effect for 24 months from the effective date, or until the City Council adopts a new rate structure, whichever is sooner. If the City Council does not adopt a new refuse rate structQre within 24 months, the refuse rates contained in the attached Rate Schedules will revert back to the rates in effect on July 20,2010. 1 100915jb0130626 Not Yet Approved SECTION 5. The Council finds that the revenue derived from the authorized adjustments of the refuse collection rates shall be used only for the purposes ~et forth in Article VII, Section 2, of the Charter of the Ci~yfPalo Alto. SECTION 6. The Council finds that the adoption of this resolution does not. constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b)(8). ' INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Director of Public Works Director of Administrative Services 100915 jb 0130626 Mayor APPROVED: City Manager 2 ATTACHMENT B ORDINANCE ,NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2011 TO ADOPT MUNICIPAL FEE SCHEDULE INCREASES FOR THE PALO ALTO LANDFILL, AND ADJUST BUDGETED REVENUES AND EXPENDITURES WITHIN THE REFUSE FUND The City Council of the City of Palo Alto does ordain as follows: SECTION 1. The City Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 28, 2010 did adopt a budget for fiscal year 2011, including a Table of Organization describing the staffing for each department and a Municipal Fee Schedule; and B. The Refuse Fund adopted budget reflects total expenditures exceeding $7,004,613; and for fiscal year total revenues 2011 by C. State regulations for landfill closure and corrective action funding requirements mandate that the Refuse Fund maintain a cash balance of $6,700,000; and D. A combination of revenue increases and expenditure decreases is needed to maintain an adequate cash balance in the Refuse Fund; and E. A nine percent rate increase for commercial customers is expected to generate an additional $1,700,000 in revenue; and F. A $5.00 per month rate increase for 20-gallon can residential service, and a six percent rate increase for all other residential customers is expected to generate an additional $500,000 in revenue; and G. Additional revenue increases and expenditure decreases are needed to maintain an adequate cash balance in the Refuse Fund as described in Exhibit A; and H. The fiscal year 2011 Adopted Municipal Fee Schedule requires amendment to increase certain refuse disposal fees related to the Palo Alto landfill as reflected in Exhibit C; and I. City Council authorization is needed to amend the fiscal year 2011 budget as hereinafter set forth. Page 1 of 3 SECTION 2. The General Fund Budget Stabilization Reserve is hereby decreased by the sum of Two Hundred Forty Thousand Dollars ($240,000), as described in Exhibit A. As a result of this change, the Budget Stabilization Reserve will decrease to $23,667,000. SECTION 3. The Rate Stabilization Reserve in the Refuse Fund is hereby increased by the sum of Five Million Nine Hundred Seventy-Four Thousand Eight Hundred Two Dollars ($5,974,802) as described in Exhibit A. As a result of this change, the Rate Stabilization Reserve in the Refuse Fund will increase to a deficit of ($5,588,812). SECTION 4. The Distribution Rate Stabilization Reserve in the Electric Fund is hereby decreased by the sum of Forty-Five Thousand Dollars ($45,000) as described in Exhibit A. As a result of this change, the Distribution Rate Stabilization Reserve in the Electric Fund will decrease to $8,986,000. SECTION 5. The Distribution Rate Stabilization Reserve in the Gas Fund is hereby decreased by the sum of Seven Thousand Five Hu~dred Dollars ($7,500) as described in Exhibit A. As a result of this change, the Distribution Rate Stabilization Reserve in the Gas Fund will decrease to $8,866,500. SECTION 6. The Rate Stabilization Reserve in the Water Fund is hereby decreased by the sum of Seven Thousand Five Hundred Dollars ($7,500) as described in Exhibit A. As a result of this change, the Rate Stabilization Reserve in the Water Fund will decrease to $12,298,500. SECTION 7. The Rate Stabilization Reserve in the Wastewater Collection Fund is hereby increased by the sum of Three Hundred Seventy-Five Thousand Dollars ($375,000) as described in Exhibit A. As a result of this change, the Rate Stabilization Reserve ln the Wastewater Collection Fund will increase to $4,941,000. \ SECTION 8. The Rate Stabilization Reserve in the Wastewater Treatment Fund is hereby decreased by the sum of Three Hundred Fifty Thousand Dollars ($350,000) as described in Exhibit A. As a result of this change, the Rate Stabilization Reserve in the Wastewater Treatment Fund will decrease to a deficit of ($14,843,000) . SECTION 9. Adjustments to defer expenditures from fiscal year 2011 to fiscal year 2012 for Capital Improvement Project RF-10003 Drying Beds, Material Storage and Transfer Area are made as shown in Exhibit B. The decrease in fiscal year 2011 is reflected in the adjustments as shown in Exhibit A. SECTION 10. The Municipal Fee Schedule is hereby amended to reflect the changes shown in Exhibit c, which is attached hereto and incorporated herein by reference. Page 2 of3 SECTION 11. As specified in Section 2.2B.OBO(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 12. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 13. As provided in Section 2 ~ 04.330 of the Palo Alto Municipal Code, this Ordinance shall become effective upon adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Sr. Asst. City Attorney City Manager Director of Admin. Services Page 3 of3 Exhibit A CITY OF PALO ALTO AMENDMENTS TO THE FY 2011 ADOPTED BUDGET FY 2011 Category Amount Description ENTERPRISE FUNDS .II::IUI~I.] Revenue $500,000 6% rate increase for residential customers Revenue 1,700,0009% rate increase for commercial customers Revenue 60,000 Rent payment from Utilities Dept.for use of former Los Altos Treatment Plant site Revenue 240,000 Loan from General Fund Revenue 230,000 Landfill gate fee increases Revenue 250,000 Landfill soil fee Revenue 350,000 Landfill gas revenue from Wastewater Treatment Fund for RWQCP usage of landfill gas Revenue Cbanges 3,330,000 Salary and Benefits $(122,624) Freeze 1.0 FTE Zero Waste Coordinator for one year Salary and Benefits s (250,000) Salary and benefits savings-landfill operations Non-salary (1,597,178) Decrease estimate for GreenWaste hauling contract Non-salary (375,000) Defer CIP RF-10003 Drying Beds,Material Storage and Transfer Area (ClP RF-10003 totaling $750,000 has $375,000 in funding from the Wastewater Collection Fund; for SAP fmancial entries,a reversal ofthe transfer between funds will be reflected) Non-salary (300,000) Decrease in Zero Waste outreach Use Changes (2,644,802) Net Changes To (From)Reserves s 5,974,802 Fund Balancing Entries 5,974,802 Change in Fund Balance Total Refuse Fund s 5,974,802 1'31 ••••..-rt -~1'4li\!!Rl!J Allocated Charges $45,000 Rent payment from Utilities Dept.for use of former Los Altos Treatment Plant site I" Use Changes 45,000 Net Changes To (From) Reserves $(45,000) Fund Balancing Entries (45,000) Change in Fund Balance-Distribution Total Electric Fund $(45,000) Exhibit A CITY OF PALO ALTO AMENDMENTS TO THE FY 2011 ADOPTED BUDGET "FY 2011 Category Amount Description rH.I 'j',.' Allocated Charges $7,500 Rent payment from Utilities Dept. for use of former Los Altos Treatment Plant site Use Changes 7,500 Net Changes To (From) Reserves $(7,500) Fund Balancing Entries (7,500) Change in Fund Balance- Distribution Total Gas Fund $(7,500) ".".••....•-~"",',~Zi~.. ,',',"'.r' ..;".:,f""',:"..\ Allocated Charges $7,500 Rent payment from Utilities Dept. for use of former Los Altos Treatment Plant site Use Changes 7,500 Net Changes To (From) Reserves $(7,500) Fund Balancing Entries $(7,500) Change in Fund Balance Total Water Fund $(7,500) ~,.lI..-• •~.""" Non-salary $(375,000) Defer reimbursement to Refuse Fund for CIP RF-I0003 Drying Beds,Material Storage and Transfer Area (project deferred to FY 2012) Use Changes (375,000) Net Changes To (From) Reserves $375,000 Fund Balancing Entries $375,000 Change in Fund Balance Total Wastewater Collection Fund $375,000 Paqe 2 of 3 Exhibit A CITY OF PALO ALTO AMENDMENTS TO THE FY 2011 ADOPTED BUDGET FY 2011 Category Amount Description ...~I];.\'~i:,::,;">'I $ 350,000 Landfill gas charges to the Refuse Fund for RWQCP usage of landfill gas Use Changes 350,000 Net Changes To (From) Reserves $(350,000) Fund Balancing Entries (350,000) Change in Fund Balance Total Wastewater Treatment Fund $(350,000) GENERAL FUND J~[.l~t:!IJ~.J••1Ir1,~::r,; Non-salary $ 240,000 Loan to Refuse Fund Use Changes 240,000 Net Changes To (From) Reserves $(240,000) Fund Balancing Entries (240,000)Budget Stabilization Reserve Total General Fund $(240,000) PagEl 3 of 3 CIP DRYING BEDS, MATERIAL STORAGE AND TRANSFER AREA (RF-I0003)• Description:This project includes designing and implementing two bunker storage-transfer systems for dry and wet materials. The project will also evaluate potential non-park land sites for these activities. The dry system will be used to store inert solids and leaves from municipal operation construction projects and street sweeping. The wet system will be used for storm drain and sanitary sewer debris from Vac-con trucks. Justification:This project will be developed in anticipation of the landfill closure in 2012. Supplemental Information:Feasibility of processing other wet construction materials and allowing contractors to use the systems will be considered during the design phase. Refuse and Wastewater Collection Funds will share equally the construction costs. PRIOR YEARS PYBudget $125,000 PYActuals as of 12/31/2009 $39,087 CIPFACTS:I- • Continuing • Project Status:Construction • Timeline:FY2010-2012 • Overall Project Completion:0% • Percent Spent:31.27% • Managing Department:Public Works • Comprehensive Plan:Policy N-37 • Potential Board/Commission Review:ARB 1-- IMPACT ANALYSIS: • Environmental:Possible exemption. • Design Elements:This project may be subject to ARB review. • Operating:None • Telecommunications:None Source of Funds: $375,00 Pre-Design Costs Design Costs Construction Costs $750,000 Other Total Budget Request $750,000 Refuse Fund with the following reimbursements: Wastewater Collection Fund($375,000) Revenues: Capital Budget FY 2011 $750,000 $750,000 $375,000 City of Palo Alto 245 Refuse Disposal Area Classification of Vehicles Passenger Car or Station Wagon Other Two-Axle Vehicle or Trailer Load less than 0.5 cubic ard Load 1 cubic ard Load 1cubic yard or more Three or More Axle Vehicles $15.00 (Less than one SUSPENDED-SUSPENDED- cubic yard)$25.00 (less than $25.00 (less than one one cubic yard)cubic yard) (minimum charge) (minimum charge)(minimum charge) $25.00/cy (one cubic SUSPENDED-SUSPENDED- yard or more) $25.00/cubic yard $25.00/cubic yard (1 (1 cubic yard or cubic yard or more) more SUSPENDED-SUSPENDED- $15.00 $15.00 $15.00 SUSPENDED-SUSPENDED- $25.00 $25.00 $25.00 $25.00 each cubic SUSPENDED-SUSPENDED- yard plus $10.00 for $25.00 each cubic $25.00 each cubic fractions greater than yard plus $15.00 yard plus $15.00 for 0.5 cubic yard for fractions fractions greater than greater than 0.5 0.5 cubic yard cubic ard Load less than 1 cubic ard Load 1cubic yard or more SUSPENDED- $35.00 $30.00 SUSPENDED- $35.00$30.00 $30.00 each cubic yard plus $15.00 for fractions greater than 0.5 cubic yard $30.00/cubic yard plus $15.00 for fractions greater than 0.5 cubic yard SUSPENDED- $35.00 each cubic yard plus $18.00 for fractions greater than 0.5 cubic yard SUSPENDED- $35.00 each cubic yard plus $18.00 for fractions greater than 0.5 cubic yard Materials Compostable Materials (per landfill acceptance 'list) City of Palo Alto $25.00/cubic yard (non-residents ani allowed to bring compostable materials) 2011 Adopted Municipal Fee Schedule 21-1 Some options presented could impact landfill rent. Any future need for rent for the landfill site would be at the direction of the City Council. Staff proposes to bring the issue to the full Council in September 2010 for direction. The following options are presented in three categories: 1. Changes in expenses or revenues that do not require Council action 2. Recommended changes in expenses and revenue sources requiring Council action 3. Additional program or service changes that are not recommended by staff. After a discussion of all three categories, staff presents a summary of the recommended elements and how it amends and balances the FY 2011 Refuse Fund Budget. 1. OPTIONS TO ENACT IMMEDIATELY: REQUIRE NO COUNCIL ACTION There are several actions staff has already implemented, or are in the process of implementing, to reduce the fiscal year shortfall. The following table summarizes these elements, which will generate $1.59 million towards the fund's shortfall. Revenue SourcelExpense Reduction Amount One time or Ongoing Fee for clean soil $250,000 One-time· LA TP rent -last 3 years, and FY 2006* $420,000 One-time LA TP rent -FY 2011 (112 ongoing) $120,000 Ongoing Green Waste contract expense reduction $800,000 One-time TOTAL $1.59 million *Half of the rent belongs to the General Fund, and would be treated as a temporary loan. Fee for clean soil. The Palo Alto Landfill is now collecting a fee to deposit clean soil at the landfill. The soil is needed to address maintenance of landfill contours, to fill in areas, and to cover the area as part of closure. This is soil that will be suitable as top cover for the future park when the landfill closes. An additional $250,000 in revenue will be generated by collecting the fee for FY 2011. Los Alto Treatment Plant (LA TP) rent. The City purchased the site and it is owned jointly in equal shares by the General and Refuse Funds. Public Works, through the Refuse Fund, purchased 50 percent of the total acreage. The Utilities Department has been using the site since FY 2005 for electric and gas fund project staging and paying a fixed rent of $120,000 per year. Since the property is owned in equal shares, the rent proceeds are split evenly between the General and Refuse Funds. However, rent was paid for only two of those years, 2005 and 2007. Moving forward, Utilities will be paying the Refuse Fund $60,000 per year for rent of the site. Staff will charge the electric and gas funds $420,000 in FY 2010 to catch up for the last three years, and $120,000 will be paid in 2011. The total of $540,000 is proposed to be paid to the Refuse Fund with $240,000 being a short-term loan from the General Fund. The Enterprise Funds pay rent to the General Fund for the use of land on an annual basis for the various sites they utilize throughout the City, therefore, this is consistent with other rent charges. Reduction in FY 2011 budgeted expense for GreenWaste contract. The GreenWaste of Palo Alto contract, which constitutes almost 39 percent of the Refuse Fund's budget, divides CMR:313:10 Page 2 of 11 payments to the company into base compensation, a fixed amount paid every month, and variable compensation for services that are dependent on subscription, such as back/side yard collection, special events, and debris box services. This variable compensation is paid quarterly . to Green Waste. The compensation was proposed by Green Waste, and was adopted as part of the budget for both FY 2010 and FY 2011. Based on additional review of a full year of actual FY 2010 payments for extra services, and the detailed customer data associated with them, the Budget Office and Public Works are adjusting the total expense of the GreenWaste contract from $14 million to $13.2 million. The decrease in expenses is estimated at $800,000 and is directly related to the lack of subscription by customers for construction and demolition (C&D) debris boxes. Timing of landfill payment. In 2007, Council established a comprehensive policy on landfill rent (CMR 104:07). As part of that policy, Council directed the Refuse Fund to begin paying rent to the General Fund on the closed, undeveloped areas of the landfill in addition to the active portions and that the landfill payments be amortized over time to avoid significant rate impacts. Under the rate smoothing schedule adopted by Council, the Refuse Fund makes annual rental payments in the amount of $4,288,747 through FY 2012 to the General Fund for use of approximately 100 acres. Under the current landfill rent payment schedule, the annual payments go down to $2,094,331 inFY 2013 through FY 2020, with a final payment of $881,851 in FY 2020. Since maintaining the commercial ban at the landfill may delay its closure, Council direction will be needed to determine what rent amount the Refuse Fund would pay for any additional full operation years. The current policy calls for full rent ending in FY 2012. Currently, the Refuse Fund makes monthly payments to the General Fund for the landfill rent. To assist with the Refuse Fund cash flow, payments for the first few months ofFY 2011 will not be made until a final decision is reached on any potential rate increase and/or loan from the General Fund. The transfer of remaining funds for rent can take place later in the fiscal year. 2. OPTIONS RECOMMENDED: REQUIRE COUNCIL ACTION With the implementation of the elements listed above, the remaining funding gap left is approximately $4.8 million. Staff is presenting a combination of expense reductions, increased landfill fees, and increased refuse rates that will address the remaining shortfall and align the solid waste system's revenue and expenses. Revenue SourcelExpense Reduction Amount One time or Ongoing Reduce landfill operations to 5 days/week $250,000 On-going Defer 2 CIP projects to 2012 $1,350,000 One-time 2011 Zero Waste Coordinator vacancy $122,624 One-time 2011 Zero Waste -outreach modification $300,000 One-time 2011 Landfill gas payment from RWQCP $350,000 On-going Increased landfill fees $230,000 On-going Rate Adjustment -Residential $500,000 Sunset after 24 months Rate Adjustment -Commercial $1,700,000 Sunset after 24 months TOTAL $4.9 million Reduce landfill operations to 5 days per week. Currently, the Palo Alto landfill is open for business seven days per week. By reducing landfill operations to five days per week, closing on CMR:313:10 Page 3 of 11 the two slowest days, Sunday and Monday, the Refuse Fund can reduce expenses by $250,000. Changes in the operation will require a modification to the State permit. Advantages: • Reduces expenses by $250,000 per year • Minimizes customer impact and tonnages entering the landfill • Maintains the commercial ban at the landfill • CIP projects can be deferred until 2012 • Preserves a footprint for potential future dry anaerobic digestion facility Disadvantages: • May require additional rent for use ofland beyond 2012 • Eliminates two staff positions -layoffs • Customers must adjust to the new schedule Defer two elP projects until 2012. If the landfill ban on commercial material remains in place, two CIP projects slated for FY 2011 can be deferred until FY 2012. The first project is to prepare the LATP site as a transfer facility for city operations, which would, among other things, house drying beds to process wet material collected as part of City operations before being transferred and landfilled. This process currently takes place at the landfill and must be relocated before closure. This project is estimated to cost $750,000. Per Council direction, the second project is to prepare Phases II A&B of the landfill to be opened to the public. Postponing this activity would save $600,000 in FY 2011, but would require Council action to implement. Advantages: • Allows $1,350,000 in capital costs to be deferred until 2012, reducing the expense requirements for FY 2011, and smoothing the total Refuse Fund expenditures over a multi-year period. Disadvantages: • Phases II A&B are not open to the public until at least 2012 • Currently, no funding is identified for park improvements Zero Waste program changes. Per the Zero Waste Operational Plan, Public Works has increased the efforts of the Zero Waste group to develop programs, services, policies and outreach campaigns to help the city reach an interim goal of 77 percent diversion by 2012, and virtually no waste by 2021. Over the last year, staff has made great strides towards these goals. While official notification from CalRecycle will not be issued until later this fall, staff estimates that the City's diversion rate to be in the low 70s percent range. With a status quo approach, the city should be able to maintain this level of diversion with the one year deferral of programs and staffing, totaling $422,624. Through a one year deferral and re-prioritization of several outreach and education campaigns and services, the budget for Zero Waste efforts can be reduced by $300,000. This will defer a majority of the programs and campaigns designed for the year, including a campaign targeting residents and owners of apartment buildings, a project to establish a co-op for small businesses to purchase recycling and compostable containers, and an outreach campaign to educate the public CMR:313: 10 Page 4 of 11 on extended producer responsibility and green purchasing. Additionally, the program has been operating with one unfilled position for the last several months, and given the budget constraints, staff proposes to leave the position vacant for FY 2011, for a salary and benefits savings of approximately $122,624. Advantages: • Reduces expenses by $422,624 Disadvantages: • One year deferral ofthe majority of zero waste programs and educational campaigns. Landfill gas payment from the Regional Water Quality Control Plant (RPWCP). Currently the RWQCP uses 125 million cubic feet of gas generated by the landfill to generate energy, primarily for the incinerators. Based on current Utilities Department's rates for natural gas, the energy is worth $350,000 in revenue. Staff proposes to initiate an inter-fund charge for the gas. Advantages: • Transfers $350,000 to Refuse Fund as revenue, annually Disadvantages: • Transfers expenses to wastewater fund Increase fees at the Palo Alto landfill. This revenue generator will increase all of the current Palo Alto landfill fees, but still keep them competitive with other facilities accepting solid waste, yard trimmings, and other materials in the mid-peninsula and south bay area. By increasing the gate fees for all materials, even with maintaining the commercial ban, the landfill will generate an additional $230,000 per year, while it remains open. The increase in rates does require modifying the Municipal Fee Schedule. Advantages: • Generates $230,000 in additional revenue, while still maintaining competitive fees Disadvantages: • Increases fees for existing customers Temporary rate increases for residential and commercial customers. In any combination of potential expense reductions and revenue generators, a modest rate increase for residential and commercial customers is still required to completely align revenues and expenses and eliminate the Refuse Fund shortfall in FY 2011. As described in CMR 301:10, Public Works is embarking on a cost of service study that will result in a new rate structure proposal for the city. However, the results of this analysis will not be ready before midyear 2011, and will be brought to the Finance Committee for consideration as part of the FY 2012 budget process (see Attachment A for the timeline). Therefore, staff proposes a temporary increase in rates for residential and commercial customers that will last no longer than 24 months, or until a new rate structure is adopted by Council, whichever is sooner. In the event the new rate structure is not finalized within 24 months, staff recommends that the rates revert back to the current levels. This would CMR:3 13: 10 Page 5 ofl1 allow the short-tenn revenue increases needed to make the fund cost recovery, but not institutionalize the increases pennanently. The complete proposed rate schedule is included as Attaclunent B. In the residential sector, services are not at cost recovery. This is largely due to an historic practice of Palo Alto and other cities to subsidize recycling and yard trimming services in order to encourage zero waste practices. More detailed analysis will take place as part of the cost of service study, but a moderate increase to begin aligning revenues with costs is warranted, and will help close the budget deficit. The 20 gallon, minican, rate, in particular, is a subsidized service level among the residential rates. While reducing the rate to $15 was consistent with the City's Zero Waste goals, and generated interest in recycling and waste reduction, it is not a sustainable rate. Staff proposes raising the mini can rate from $15 to $20 per month. Changing this rate begins to realign the proportionality of this service level to the others available to residential customers. For the remaining residential customers, a 6 percent increase for FY 2011 is recommended. For the 32 gallon customer, a 6 percent increase is $1.86 per month, from $31.00 to $32.86. The total increase in residential rates is proposed to generate $500,000 in revenue. Additionally, while commercial rates in general are closer to cost recovery, the majority of the revenue shortfall for FY 2010 occurred in the commercial lines of business resulting in a large commercial sector deficit. To assist in closing this gap, Staff is recommending a 9 percent increase for commercial customers to generate an additional $1,700,000 per year. For a common customer level, a 3 cubic yard bin serviced twice per week, the current monthly rate is $798.00. This will increase to $869.82 if the rate proposal is adopted. Finally, the proposed rate structure reduces rates for commercial source separated debris boxes to make ~hese rates more competitive with private haulers. Based on the City'S municipal code, source separated recyclables in the commercial sector are allowed to be collected by any hauling company. Because the City'S rates for debris boxes have been historically more expensive than other private haulers, GreenWaste and the City have been losing business to them. This change in source separated debris box rates makes the City's rates more competitive on the open market. Advantages: • Generates a significant amount of revenue to reduce the FY 2011 deficit • Is not permanent; in effect no longer than 24 months Disadvantages: • Enacts a rate increase on the City'S customers • Does not assist with long tenn goal of re-establishing mimmum Rate Stabilization Reserve level of 10 percent of revenue Finally, as mentioned at the July 6, 2010 Finance Committee meeting (CMR 301:10), staff is in the process of finalizing a new rate and revenue forecasting model for the Refuse Fund. This model uses a combination of many variables to predict future revenue including industry standard service level migration estimates, actual trends in customer service levels and tonnage generation, and economic growth factors. The model allows sensitivity analysis on up to 100 variables, and as the City continues to use the model year to year, it will become more robust with the inclusion of act';lal data and trends from the new programs and services. CMR:313:10 Page 6 of 11 For FY 2011, without the rate increase, residential revenue is modeled to remain essentially flat, based on historical trends of new residential customers and the past widespread migration to the lower service levels. Commercial customer revenue is forecasted to grow approximately 3.5 percent without a rate increase, which is consistent with estimates for growth in sales tax revenue, as included in the City's Long Range Financial Forecast and budgeted in the General Fund. 3. OPTIONS NOT RECOMMENDED Staff also evaluated other options to generate either additional revenue. or cut expenses to the Refuse Fund, including closing the composting operation, the recycling center, and the entire landfill itself. Ultimately, due to policy direction, a consideration of the convenience to residents, and the avoidance of service reductions, Public Works is not recommending these options be implemented. Revenue SourcelExpense Reduction Amount One time or Ongoing Reduce street sweeping -residential $250,000 Ongoing Close compost facility $150,000 Ongoing Lift commercial ban at landfill $500,000 Ongoing Close recycling center $300,000 Ongoing TOTAL $1.2 million Reduce street sweeping to biweekly service for residential streets. The proposal would reduce street sweeping in the residential areas of the City from every week to biweekly. Sweeping in the commercial districts would remain weekly. The net savings to the City is estimated to be $250,000 per year. This savings comes primarily from the elimination of two positions and the need for one piece of equipment. While this is a common level of service in the bay area, there are concerns that modifications to the current street sweeping frequency may have impacts on stormwater quality and localized flooding potential in certain areas of the City. Advantages: • Cost savings of $250,000 Disadvantages: • Reduces current level of service to City residents • Potential negative impacts to stormwater quality • Potential increase in localized flooding during rain season • Eliminates two positions -layoffs Close the composting facility. Given the City's long-term arrangement with the SMaRT Station in Sunnyvale (as described in CMR 301:10), yard trimmings currently delivered and processed at the Palo Alto facility can be accepted immediately at the SMaRT Station, and transferred to Z-Best in Gilroy for processing, for the net savings of $150,000 per year. While Public Works will require compost to finish the closure of the landfill, staff can produce and stockpile the needed material for up to two years before closing the facility. It would take approximately six months to produce the needed amount of compost. However, if landfill CMR:3I3:10 Page 7 of 11 closure is more than two years after the closure of composting operation, stockpiles could not be maintained. Advantages: • Cost savings of$150,000 • Use of SMaRT Station processing operation already paid for in contract Disad vantages: • Community's loss of local access to finished compost • Potential need to purchase compost to complete closure of landfill if no stockpiling • Would require staff to modify State permit Remove the ban on commercial material at the landfill in FY 2011. If the ban accepting commercial solid waste were lifted, the landfill would generate approximately an additional $500,000 per year while it remains open. Staff would also explore ways to market the landfill to attract customers to the landfill to increase the revenue even more. Ending the ban would require Council action and hastens the closure of the landfill. Advantages: • Additional revenue of at least $500,000 • Completes filling the landfill quickly for closure and conversion to park • Reduces the expense of operations in future years, beginning in 2012 Disadvantages: • Fills space where a potential anaerobic digestion facility would be located • Eliminates option to delay CIP projects and the subsequent savings in 2011 Close the Recycling Center. The City currently houses a drop-off recycling center at the landfill, which must be relocated before the landfill closes. The City contracts with Green Waste of Palo Alto to staff the recycling center, and transport and process the materials. The SMaRT Station in Sunnyvale houses a recycling center, which accepts the same materials as Palo Alto's, and currently is open to all Palo Alto residents as part of our long term arrangement. The City would save approximately $300,000 per year by closing its facility. Realizing this savings would require amending the current contract with Green Waste of Palo Alto. The hauler could suggest additional changes to the contract if the City reopens negotiations. Advantages: • Cost savings of $300,000 • Use of services provided in SMaRT Station agreement Disadvantages: • Requires opening contract with Green Waste, which could result in their request to renegotiate compensation • City residents must either use curbside service or travel to Sunnyvale • In conflict with and would require modification to City's comprehensive plan CMR:313:1O Page 8 of II Fill the landfill by end of FY 2011. Staff also evaluated several scenarios in which filling the landfill was. accelerated so that closure could begin by the end of FY 2011. These options included using clean soil to fill the landfill, or diverting curbside garbage from the SMaRT Station to the Palo Alto landfill. Both scenarios would enable the landfill to be filled by the end of FY 2011. These scenarios do not reduce expenses in FY 2011, but do allow significant reductions in operational expenses, approximately $1.5 million beginning in FY 2012, as closure begins. Additionally, filling the landfill by the end of the fiscal year impacts the potential siting of an anaerobic digestion facility. Filling the landfill with soil is not a viable option, primarily because it significantly affects the City'S waste diversion, and places the City out of compliance with AB 939, which mandates 50 percent diversion. Because of the amount of soil that would be required to complete filling the landfill, the City's tonnage landfilled would quadruple in amount and reduce the City's currently estimated diversion from the low 70s percent range, to approximately 35 percent. The State has the ability to fine cities up to $10,000 per day for being out of compliance with AB 939. The other option to fill the landfill quickly, diverting from the SMaRT Station to the landfill all of the curbside garbage currently collected, would enable the City to close the landfill by the end of the fiscal year. This option, while filling the landfill within the year, would also impact the City'S diversion for the year slightly. Because all of the garbage taken to the SMaRT Station is sorted for recyclables before it is sent to the landfill (with a 20-25 percent recovery rate), the City would see a slight dip, potentially a 5 percent drop, in diversion for the year. A final option is to accept garbage from other communities.' The Palo Alto landfill is restricted by its permit to accept only waste generated in Palo Alto. Additionally, the landfill permit in its current form does not allow the transfer of material. So the City would need to work with the State if modifications to the pennit were desired to allow material from other communities as a means of generating additional income and filling the landfill more quickly. Advantages: • Fills the landfill quickly for closure and conversion to park • Reduces the expense of operations in future years, beginning in 2012 Disadvantages: • Fills space where a potential anaerobic digestion facility would be located • Eliminates option to delay CIP projects and the subsequent savings in, 20 11 • Diversion is impacted for FY 2011. In the case of using soil to fill the landfill, the City may be fined for being out of compliance with AB 939. • Staff would need to revise the State permit and municipal code SUMMARY RECOMMENDATION In conclusion, the staff recommendation includes all of the options presented in the first two categories described in detail above. The following table provides a summary overview of those proposals, and how they amend the FY 2011 budget to close the deficit. CMR:313:10 Page 9 of 11 Total Fund Revenues per ProPQsed Budget $29,895,824 Changes: One-time Ongoing 6% increase for residential 500,000 9% increase for commercial 1,700,000 Rent payment from Utilities for use of former Los Altos Treatment Plant site 240,000 60,000 Loan from General Fund 240,000 Landfill gate fee increases 230,000 Landfill soil fee 250,000 Landfill gas revenue from RWQCP 350,000 730,000 2,840,000 3,570,000 Total Fund Revenues-Amended $33,465,824 Revised # Total Fund Expenditures per Proposed Budget $36,889,554 Changes: One-time Ongoing Decrease in estimate for GreenWaste contract* (800,000) (797,178) Restore 0.1 FTE Engineering Tech III (0.9 FTE allocated to CIP sidewalk repair and replacement 10,883 Defer CIP RF-10003 Drying Beds, Material Storage and Transfer Area (750,000) DeferCIP RF-11001 Landfill Closure (600,000) Decrease in landfill operations (250,000) Freeze 1.0 FTE Zero Waste Coordinator for one year (122,624) Decrease in Zero Waste outreach (300,000) (2,572,624) (1,036,295) (3,608,919) Total Fund Expenditures-Amended $33,280,635 Change in Net Assets $185,189 Revised # *$797,178 decrease in expenses is an ongoing change that was inadvertently left out of the adopted FY 2011 budget NEXT STEPS The described solution is predicated on the enactment of all proposed changes by October 1, 2010. Additional measures and potential impacts to services and rates would have to be evaluated, if changes are implemented later in the fiscal year. This would include a potential loan from the General Fund to assist in closing the shortfall for FY 2011. The recommended refuse rate increase is subject to the notice and protest hearing procedures of Proposition 218. In the event that a refuse rate increase is approved, the City will conduct the CMR:313:10 Page 10 of 11 ATTACHMENT A Refuse Rate Cost of Service Study and Restructuring Timeline Date Activityl Action August 2,2010 Notice to Proceed for Cost Service Study October 15, 2010 Results of study due from consultant Oct-December Staff review of consultant's study and analysis, and 2010 preparation of proposed new rate structure January-March Information and recommendations to Finance Committee for 2011 discussion and decision Mid-March 2011 Decision by Finance Committee By first week of Proposition 218 notice letters sent to customers April 2011 March-June 2011 Adjustments to SAP and GreenWaste's billing system to include proposed changes to rate structure End of May/early Rate Hearing by City Council June 2011 July 1,2011 New rate structure goes into effect Dear Sirs, Steven Rosenberg 4073 Amaranta Ave. Palo Alto, Ca. 94306 650-493-6311 .. CITYOF .PALO ALTO.C.A CITY CLERK'SOFF'ICE JOAUGI6 AM,9: Sit I am writing to protest the proposed new charges for refuse rates that will be considered at the Sept. 20, 2010 Palo Alto Council meeting. I strongly oppose any increase in residential rates other than hard to servi~e areas. My utility account number is: Steven Rosenberg Robert K. Stitt 919 Amarillo Avenue, Palo Alto, CA 94303 August 12, 2010 City of Palo Alto City Clerk 250 Hamilton Ave Palo Alto,~CA 94301 Phone: 650493-5900, FAX: 650493-0636 E-Mail rks3ataad@yahoo.com CITY Of PALO ALTO. CA CITY CLERK'S OFFIC£ - 10 AUG 17AH 10: 5. RE: Objection to Proposed Refuse Rate Increases Gentlemen, I am writing this letter to object to the increase in the rates for refuse collection. This increase would adversely affect most, those with the lowest earnings and the retired and elderly. Very truly yours, Robert K. Stitt PauAcct. #: CITY OF PALO ALTO, CA CITY CLERK'S OFFICE 10 AUG 23 Aft 8:1' CITY OF PALO ALTO CITY CLERK 250 HAMILTON AVE PALO ALTO CA 94301 RE: PROPOSED REFUSE RATES ACCOUNT. 2023 E BA YSHORE RD PALO ALTO CA 94303 CITY OF PALO ALTO. CA CITY CLERK'S OFFICE . . 10 AUG 16 AM 9: &., THE PROPOSED REFUSE RATE CHANGES ARE NOT ACCEPTABLE. WE WERE ASKED TO RECYCLE TO LESSEN OUR TRASH AMOUNT AND NOW YOU ARE GOING TO RAISE OUR RATES? PLEASE DO NOT RAISE OUR RATES.!!!! WE ARE A SMALL BUSINESS AND IT HAS BEEN A VERY HARD FEW YEARS DUE TO THE ECONEMY. THE INCREASE IN THE REFUSE RATE WOULD BE A TERRIBLE BURDEN. SINCRELY",,/C . MIT~~!j~~Ji~~~ .-----' FRANK L. ALTICK, D.D.S. ~,rY OF PAl9 A~TO. 824 BRYANT STREET ; TY CLERK S OFFICCV' PALO ALTO, CALIFORNIA 94301 10 AUG _.. ;.. ..: •.. PH. (650) 327-1787. FAX (650) 327-7971 9 PH 4r 2' ~ .. ;,. ' .. . ' 1010 Bryant St. Palo .Alto, . CA 94301·. Augu'st 7, '2010 nS2 0=t~ ~. -<-< tn psg m,:.1j Q . ::oJ> 'City Clerk of Palo Alto 250 Hamilton St .. ' Palo'Alto, CA 94301 ~r­=-U;O :c. - RE: "'~ . _. ':S;: Formal protest against rise in costs for garbage dispos ... ·j .~ Identifying no. City of Palo Alto Utilities account number: As a resident of the City of Palo Alto, I OBJECT to the projected rise in the cost of garbage disposal. This PROTEST is made prior to the cutoff date of Sept. 20, 2010 and must be delivered to the City Council of Palo Alto. Respectfully submitted, /\ 'r v: .,t:J~ Raymond V. Dunn . ., J ., . : 1440 Bryant Street Palo Alto, CA 94301 \ August 10, 2010 City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 RE: Protest against proposed refuse rate changes 'Parcel # Dear City Clerk, CJTY OF PAL;Q AUD.CA CITYCLE~K S OFnC£ . . -. . . "AUG J 3 ,A" 9: 4, This is my formal, written and signed protest to the proposed refuse rate changes, for the above parcel number. ' Please let the city council know that the need to stop tapping already strained budgets of property owners in Palo Alto for shortfalls that could have and should have been anticipated. ' Residents and property owners should not be punished with increasing rates for following the City'S guidelines in being more responsible about the amount of garbage they produce each week. Sincerely, /.,~~M Hedy McAdams August 9, 2010 City of Palo Alto City Clerk 250 Hamilton Ave. Palo Alto, CA 94301 Carol and Harry Saal 1955 Bryant St. Palo Alto, CA 94301 Account Number: Re: Protesting Proposed Refuse Rate Hikes To: City Clerk/City Manager/City Council CITY OF PALO ALTO G CITY CLERK 'SOFFfCEA fOAUG"PHft: 0 j I am submitting a formal protest regarding the upcoming rate hikes. It is not the amount of the increase but the fact that you just raised rates and cut service last year and you are again proposing hiking the rates. In addition, you are not facing up to your budgetary responsibilities and forcing the citizens of Palo Alto to do your work for you. This sounds very reminiscent of the dysfunctionality at the State level. Do the job you were hired and elected to do. Sincerely, Carol Saal , August 9, 2010 City of Palo Alto City Clerk 250 Hamilton Avenue Palo Alto, CA 94306 RE: .Proposed Refuse Rate Changes Dear City Clerk, OITY OF PALO ALTO. CA CITY CLERK'S OFFICE . . ID'AUGt! AM 8t 21 Please accept this letter as a formal protest to the proposed refuse rate changes as described in a letter from the City dated July 29,2010. I realize that the City must recover its operating costs for such service, however the rate increase to the users of the mini-can120 gal. cart is unacceptable and not in line with the City's goal of encouraging users to reduce their solid waste stream. The increase is 33.33% over the present rate versus a 6.0% increase in all other categories. This is not the way to encourage a reduction in the amount of material that eventually ends up in the landfills. As a result of this change, a mini-can user will pay $1.00 per gallon of waste versus 0.75 cents per gallon before the rate increase. The rate for other carts will pay just over $1.00 per pound. In fact, I rarely if ever, fill my 20' gallon cart on a weekly basis. even though I live in an average size (1600 sq. foot) house with two people. I would much prefer to have my cart emptied on "as needed" basis rather than every week. Might it be possible to put the service on "hold" as I do with my newspaper when I am away? This approach should not be a big technical problem at all. . Thanks for listening. R~ Gary Ruppel (650) 494-0530 df\ \ .~\( Pm T es \>~ ~'-(~)lQ City Clerk City of Palo Alto 250 Hamilton Ave. Palo Alto, CA 94301 CITY Of PALO ALTO.CA CITY CLERK'S OFFICE 10 SEP 15 AH 9: " Wei -shun Wang 3359 Bryant St. Palo Alto, CA 94306 9112/2010 RE: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto In response to the CityofPalo Alto's July 29, 2010 Notice of Proposed Refuse Rate Changes, I write to protest the proposed rate changes for refuse collection services and the imposition of a "hard to serve" fee on certain areas that the City claims must be served with "special equipment." My City of Palo Alto Utilities account number is My address is 3359 Bryant St. Palo Alto, CA94306. My Assessor's Parcel Number is l32-22-057. Sincerely, Wei-shun Wang · cwt '0 ZOID () JU L .~ltY04J~9ldific~AJ d -i0h 1I If. -J-: r L.-. . 'L i. ~ rt) 11' C e ~O Au6~~~ l! wJ,U-~ L4' l./JI./YJ;?/d f O~'10 ct 3?"Iv .~ ~ ~ )-~ -CC{/Y1J ;l 0 ~ . .Mv1:L, .. ~ ~ VL- ~~rnwS-e,.~~ -U (lR~~? ~ JL :3 % "~ (rry ~ ~ ~ -f~ (Ld;e, j~!leM:lu~k~ . .4 ,(lCUVYL£ err (lR.c.UAA:LA f fIX urvt fiy ~ Lj. x 32 cp1 c<JYli:auN/\.-d 0lJ ~, .:»u-u ~ .:;;t:/LL CU./J fi;yyt.uu) . ~ liJu /1U) j I-cJcUJQ ( u/ra ltJ~+ (J '7 0 eh a 11 nJ /)} Au-€ PttW {ij!h (It JLf:JO / City of Palo Alto City Clerk 250 Hamilton Avenue Palo Alto, Ca. 94301 Subject: Proposed refuse rate changes. I formally protest the proposed refuse rate changes. Instead of a rate increase I have two suggestions. 9Aug2010 CITY elF PALO ALT CITY CLERK'S oFW,clA , . ..' 10 AUG fJ 'PH 12* .... One, introduce a smaller mini-can (for example, 10 gal capacity). This smaller receptacle would suffice for many households. Two, allow for pickup every other week, instead of every week. My household could easily live with pickup every two weeks. The adoption of either or both of these strategies should allow for refuse rates to remain static, .. or actually be reduced. ;;$:, '"' ........ A c. ~ I l.\iA.)V\ Tom Neier Account No.: ~ 790 Christine Drive Palo Alto·, Ca. 94303 CITY OF PALO ALTO CA CITY CLERK'S OFFICE l£~! A~ltJ1t 'ok /nC¥t4ft ,It. ~.u,..14iJ ~ ~ ~~~~/· /tllu -I· ,,.1-tJ!. 41.;"'+ tit 1". p'«'t'/ "{we (;/ltt/;" Jt,.~~ .. Illllu .. · . , . ,eJ.'~1 August 15, 2010 City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Attn: City Clerk Re: Account # CITY OF PALO ALTO. CA CITY CLERK;SOF'FtCE 10 AUG 24 AM 9:4' In accordance with your Notice of Proposed Refuse Rate Changes, dated July 29,2010, I hereby submit a formal written protest against the proposed refuse rate changes to be imposed on the residents effective October 1, 2010. Since~IY' -I ~ o:53:evore 2291 Cowper Street Palo Alto, CA 94301 JOHN PAUL HANNA· A PROFESSIONAL CORPORATION DAVID M. VAN ATTA A PROFESSIONAL CORPORATION WILLIAM R. GARRETT A PROFESSIONAL CORPORATION August 5,2010 City of Palo Alto City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 HANNA & VAN ATTA ATTORNEYS AT LAW A PARTNERSHIP OF PROFESSIONAL CORPORATIONS 525 UNIVERSITY AVENUE, SUITE 600 PALO ALTO, CALIFORNIA 94301-1921 www.hanvan.com Re: City of Palo Alto Utilities -Account No. _ 51 Crescent Drive, Palo Alto, CA 94301 Dear City Clerk: CITY OF PALOAthT,L ~. CA CITY CLERK·S·· .. •. . .. leE 10 AUG -9 PH It: 31 TELEPHONE (650) 321-5700 FACSIMILE (650) 321-5639 Email: jhanna@hanvan.com Please accept my protest against the proposed increase in refuse rates. I would like to be able to protest charges for electricity, water and gas, but haven't been given the opportunity to do that. (Our utility bill runs between $1,200-$1,400 per month, which seems excessive.) Best regards, JPH:sm T:\WPWIN60\LETTERS\JPH\City of Palo ALto[08 05 IOJ.doc JOHN PAUL HANNA A PROFESSIONAL CORPORATION DAVID M. VAN ATTA A PROFESSIONAL CORPORATION WILLIAM R. GARRETT A PROFESSIONAL CORPORA nON August 5, 2010 City of Palo Alto City Clerk 250 Hamilton A venue Palo Alto, CA 94301 HANNA & VAN ATTA ATTORNEYS AT LAW A PARTNERSHIP OF PROFESSIONAL CORPORATIONS 525 UNIVERSITY AVENUE, SUITE 600 PALO ALTO, CALIFORNIA 94301-1921 www.hanvan.com Re: City of Palo Alto Utilities -Account No 51 Crescent Drive, Palo Alto, CA 94301 Dear City Clerk: CITY OF PALO ALTO VA CITY CLERK'S OFFICE '0 AUG -9 PH It: 3t TELEPHONE (650) 321-5700 FACSIMILE (650) 321-5639 Email: jhanna@hanvan.com Please accept my protest against the proposed increase in refuse rates. I would like to be able to protest charges for electricity, water and gas, but haven't been given the opportunity to do that. (Our utility bill runs between $1,200-$1,400 per month, which seems excessive.) IPH:sm T:\WPWIN60\LETIERS\JPH\City of Palo ALto[08 05 IO).doc City Clerk City of Palo Alto 250 Hamilton Ave. Palo Alto, CA 94301 CITY OF PALO ALTO,CA ClTY CLERK'S OfFI·CE : . . 10 SEP 13 AM II: 01 Michael Sims 931 Curlew Lane Palo Alto, CA 94303 Sept. 9,2010 RE: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto I would like to take this opportunity to formally protest the proposed increase in my garbage fees, be designating my street as "hard to serve" (Reference: City of Palo Alto's July 29,2010 Notice of Proposed Refuse Rate Changes). In my opinion this street is not hard to serve, and in fact the previous garbage company had no problems serving our street with standard equipment. In addition, we have Palo Alto Fire Department engines and large delivery and moving trucks using our streets all the time. It seems to me the decision was based on the fact that the Vantage community is a private community with streets maintained by the HOA, not on any real assessment of the streets. The $15 per month increase is excessive and unfair. My City of Palo Alto Utilities account number is , and my address is 931 Curlew Ln., Palo Alto. . s~~relV ~S:m: (' P A Utilities City of Palo Alto City Clerk 250 Hamilton Palo Alto. CA 94301 Subject: Protest rate increase Ref: Notice of proposed refuse rate increase Utility account number: ~ 1466 Dana Ave. Palo Alto, CA 94301 CITY OF PALO ALTO, CA CHY CLERK'S OFFICE 10 AUG 17 AM 10: 57 DO NOT increase the refuse rate. I suggest that you require that all those in favor of a refuse rate increase -state so in writing. My guess is you wouldn't get 10 letters. Why assume there is consensus when the burden is always on the assumption of acceptance of a negative proposal and never, vice versa? You make it difficult -if not impossible -for objections to be accurately voiced. Most people miss the notice, fail to respond in time, don't include the 'right info' or don't want to fight city hall (trouble & inconvenience). Continual rate increases are arrogant and add to the detachment between the city and those that pay the bills. Shame on you, again. ·:~U::(/t~ lrack and Retta Koch \ .... /14(1(1 Dana Ave .:~--, Palo Alto, CA 94301 City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 cnv Of PALO AUD,CA CITY CLERK'S OFFICE; 10 AUG 26 AM 10: 45 Re: Proposed Refuse Rate Changes 1469 Dana Avenue Palo Alto; Calif. 94301 August 22, 2010 The City of Palo Alto has a strong environmental record and vigorously promotes recycling and minimizing its waste stream. As property owners and, we hope, good citizens, we make every effort to comply; we compost and recycle all that we can, and rarely fill even our mini 20-gallon refuse cart. Thus, we fail to understand why the proposed rate increases for refuse collection clearly penalize those who generate the least refuse. For the users of the mini-cans, the rate increase is a whopping 33 1/3 percent, while all other once-a-week customers will have an increase of just 6 percent-less than one-flfth of the rate increase for 20 gallons. (We didn't do the math for multiple pickups, but it looks comparable.) Even in actual dollars, not until a customer is generating 96 gallons a week would he or she pay more than the $5.00 increase imposed on those generating only 20 gallons a week. We strongly object to the message this sends about the city's environmental commitment and to the discriminatory nature of the percentage of rate increase. Yours, ~w~~ Dennis H. Smith ~tffitA.~ Ellen F. Smi;; p.s. Speaking of reducing waste, we received two copies of this notice, one addressed to Dennis Smith Ellen Smith 1469 Dana Ave Palo Alto, CA 94301 and one to Smith Dennis H and Ellen F Trustee 1469 DanaAv Palo Alto, CA 94301 Can't such records be combined? BrianMa 518DIi~~" Palo Alto, CA 94306 CITY Of PALOALTO,CA CtT¥CLERt{tS·OfFlCi. '0 AUG" -AM tt'" August 12,2010 I am writing to protest the nroposed increase in garbage collection rates. My utility account number is ___ ~ ~ J ~ • .md my parcel number is 13 7-37 -009. The proposed "hard-to-serve" service charge is akin to extortion, as affected residents have no recourse to avoid it. In fact, the rate for mini-can service plus the service charge will be higher than the rate for standard can service (which will be exempt from the new charge), which basically forces affected residents to upgrade to standard can service. I fail to see the logic behind this pricing, other than it forces residents to pay more for additional garbage capacity that they may not need. v Please do not let Green Waste impose such a high service charge; their contract with the·city is large enough that they should not need to single out certain residents with punitive service charges. Sincerely, ~~ Ifiw BrianMa f-,,1 in ZhCA.;12 5.:2-( DlZlSCOL.L PLACE pc,{vAI-tO, LA q4-s o b A ~~c'c# '. \0 c;-ty of P<t[o A [-to U"tilities S I nC.0f<? it /~1 ... 7 V;~?p/~ Lh ~f\ j , Iv[ 1''1 CITY OF R . .CITY ClE~b9 ALTO. CA , n S OFFICE 10 AUG 27 " .. . P"'2:2, City Clerk CITY OF PALO ALTO. CA CITY CLERK'S OFFICE 10 S[P 13 AH II: 05 City of Palo Alto 250 Hamilton Ave. Palo Alto, CA 94301 Chang Kuang 3729 Egret Ln Palo Alto, CA 94303 09/09/2010 RE: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto In response to the City of Palo Alto's July 29, 2010 Notice of Proposed Refuse Rate Changes, I write to protest the proposed rate changes for refuse collection services and the imposition of a "hard to serve" fee on certain areas that the City claims must be served with "special equipment." My City of Palo Alto Utilities account number is _________ My address is 3729 Egret Ln, Palo Alto, CA 94303. My Assessor's Parcel Number is 127- 68-034. Sincerely, C) Chang Kuang .. ,- CITY Qf PA L 0 AOLFTFO,'Cc;. CITY CLERK'S· . to City Clerk City of Palo Alto 250 Hamilton Ave. Palo Alto, CA 94301 10 SEP 15 At19:" Wei-shun Wang 3733 Egret Ln Palo Alto, CA 94303 9/9/2010 RE: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto In response to the City of Palo Alto's July 29, 2010 Notice of Proposed Refuse Rate Changes, I write to protest the proposed rate changes for refuse collection services and the imposition of a "hard to serve" fee on certain areas that the City claims must be served with "special equipment." My City of Palo Alto Utilities account number is ~ My address is 3733 Egret LN. Palo Alto, CA94303.My Assessor's Parcel Number is 127-68-032. Sincerely, Wei-shun Wang September 9, 2010 City Clerk City of Palo Alto 250 Hamilton Ave. Palo Alto, CA 94301 CITY Of PALO ALTO, CA CrTY CLERK'SOF'FICE 10 SEP -9 PH f: 2' Ajay & Anu Rajput 3736 Egret Lane Palo Alto, CA 94383 RE: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto In response to the City of Palo Alto's July 29, 2010 Notice of Proposed Refuse Rate Changes, I write to protest the proposed rate changes for refuse collection services and the imposition of a "hard to serve" fee on certain areas that the . City claims must be served with "soecial equipment." My City of Palo Alto Utilities account number is My address is 3736 Egret Lane, Palo Alto, CA 94303. Sincerely, 4,. t AJay RaJPu Attn: Donna Grider City Clerk, City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Dear City Council Members, CITY OF PALO CITY CLERK'SAOLFTO.CA . . ...• FICf to AUG 27 PHIZ: 28 I am writing to protest the increase for garbage service on "hard to service" streets. As a . resident of Ellsworth Place, which is designated a private street, home owners are responsible for the maintenance costs of our street. This saves the city money, as they do not pay to maintain our street, even though all home owners pay the same percentage of property taxes as Palo Alto residents who do not live on private streets. It is with this argument that I protest the additional fees of $14.42 per month ($173.04 per calendar year) for garbage collection to be charged to those of us on private and hard to service streets. If the garbage company needs more revenue to cover the costs of picking up our garbage, then the City should subsidize the costs as they already save money by not maintaining our private streets. Sincerely, Address: __ l_'_l_E_I_' 5;_' vu_vl_I_h._P_i_A_c.c_, _P_A_l_O_~_\_~---=-)_C_vi __ cr_I...(_3()_G~ _____ _ Utility Account Number: _~ __________ _ Attn: Donna Grider City Clerk, City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Dear City Council Members, CITY OF PALO ALTO. CA CITY CLERK'S OFF'IC~ f 0 AUG 24 AM 9:~' I am writing to protest the increase for garbage service on "hard to service" streets. As a resident of Ellsworth Place, which is designated a private street, home owners are responsible for the maintenance costs of our street. This saves the city money, as they do not pay to maintain our street, even though all home owners pay the same percentage of property taxes as Palo Alto residents who do not live on private streets. It is with this argument that I protest the additional fees of $14.42 per month ($173.04 per calendar year) for garbage collection to be charged to those of us on private and hard to service streets. If the garbage company needs more revenue to cover the costs of picking up our garbage, then the City should subsidize the costs as they already save money by not maintaining our private streets. Sincerely, Name; S hr If e y L. J? CJLC(.e ((~ Date: __ ~f--!2._Z-f/_I_U ___ _ Address: 1-!<ir J=-f{s uJortk Pia Ce Pet {" /t-fh C1t-9t(3tJb Utility Account Number: _ Attn: Donna Grider City Clerk, City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 August 21 , 2010 Dear City Council Members, CITY OF PALO AlTn . CITY CLE'RK"S OFFihlA '0 AUG.Z4 AH 9: it!» I am writing to protest the increase for garbage service on "hard to service" streets. As a resident of Ellsworth Place, which is designated a private street, home owners are responsible for the maintenance costs of our street. This saves the city money, as they do not pay to maintain our street, even though all home owners pay the same percentage of property taxes·as Palo Alto residents who do not live on private streets. It is with this argument that I protest the additional fees for garbage charged to those of us on private and hard to service streets. If the garbage company needs more revenue to cover the costs of picking up our garbage, then the City should subsidize the costs as they already save money by not maintaining our private streets. If Green Waste is granted the right to charge us an additional fee of $14.42 month, which totals $173.04 per calendar year, I will keep myself out of the Palo Alto Green Renewable Energy Program. I had signed up for this program earlier this year, but have opted out of it in protest to the unfair garbage fee hike to those of us on private streets. This is my way of shifting the personal cost from one place to another, to cover the" increase in garbage collection. . It is unfair to gouge those of us on private and hard to service streets for garbage collection, when the city of Palo Alto saves money by not maintaining our streets! It is the city of Palo Alto who should subsidize the fees for garbage collection on private streets, not the residents. Sincerely, Kristen Van Fleet Home Owner: 724 Ellsworth Place Palo Alto, CA 94306 Utility Account # Attn: Donna Grider City Clerk, City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Dear City Council Members, CITY OF PALO ALIO. CA CITY CLERK'S OFFICE :t 0 SEP -9 PH 2: Sr-tr I am writing to protest the increase for garbage service on "hard to service" streets. As a resident of Ellsworth Place, which is deSignated a private street, home owners are responsible for the maintenance costs of our street. This saves the city money, as they do not pay to maintain our street, even though all home owners pay the same percentage of property taxes as Palo Alto residents who do not live on private streets. It is with this argument that I protest the additional fees of $14.42 per month ($173.04 per calendar year) for garbage collection to be charged to those of us on private and hard to service streets. If the garbage company needs more revenue to cover the costs of picking up our garbage, then the City should subsidize the costs as they already save money by not maintaining our private streets. Sincerely, Name: Utility Account Number: _' ___________ _ August 9,2010 City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 Re: Refuse Collection Rate Increase Dear Members of the City Council: CITY OF PALO ALTO,CA CITY CLERK'S OFFICE H) AUG 13 AH 9: 81 Utility bill number: # On August 4,2010 my husband and I received notice of the proposed refuse collection rate increase. We have four questions and comments for the Council's consideration. 1. What is the reason for proposing a rate increase of over 30 percent to your customers, who only use mini-cans? Comment: It would seem that if anything, people contributing so little to the landfill should not be penalized for their conservation efforts. 2. What is the rationale for an increase in excess of over 9 percent for people who only use one 32-gallon can, and only a 6 percent rate increase for those who use six 32- gallon cans? Comment: It would seem that there is an inequity in the proposed rate increase. 3. Is the rate increase only for the actual cost of refuse collection, yard trimmings, recyclables collection, or is the increased revenue going to off-set some other city shortfall? Comment: The material you provided was deficient in numbers for the actual cost and expenditures of this service. There was more paper wasted on "hard-to-serve" locations than on actual financial data. Please provide documentation as to the costs and expenses for this service. 4. Is August typically the time that discussions on rate increases occur? Comment: It is hard to believe that during the height of the summer vacation season is the best time to maximize public comments. Even thoughyou are giving people until September 20 to comment, one has to wonder ifmany will act upon mail, which is not a bill and received during vacation. We consider the proposed rate increase, as presented, inequitable-penalizing those with the least amount of refuse. Your materials do not document the need for a rate increase-a cost vs expense sheet. Sin~~~~~&--- Steve and Nancy Suddjian , \[ U~ E 10 S \' {J10 \.,LO.-L'\ 9110/2010 To City Council; City Clerk 250 Hamilton Ave Palo Alto, CA 94301 CITY OF PALO ALTO, CA CITY CLERK'S OFFtcE IOSEP 13 AM' I :()S I am formally protesting the refuse increase proposed charges. In this economy you need to find other ways to cut costs, including personnel at the city. Account # __ ~v 575 Everett Ave Signed lUn 50\, Kenneth Hake City Council, City of Palo Alto, CA CITY Of PALO ALTO. CA CITY CLERK'S OFFICE 10 AUG 24 AM 9: 4' City of Palo Alto Utilities account number: Dear Sir/Madam: James Sperry and Eleanor Lin '\" 3722 Feather Lane Palo Alto, CA, 94303 Re: Proposed Refuse Rate changes -letter of July 29,2010 from City of Palo Alto In accordance with the above notification from the City of Palo Alto, please consider this letter as my formal protest to the rate increases. Sincerely, ~9f~~;Z:' James Sperry and Eleanor Lin City· of Palo Alto Public Works Department Operations.Division P.O. Box 10250 Palo Alto, CA 94303 August 14,2010 CITY OF PALO ALTO.CA CITY CLERK'S OFFICE ... to AUG I 7 AHIO:5' I hereby protest the unconscionable increase in my Refuse Collection fee from $15 per month to $20 per month. The increase is 33 113 % !!!! All of the other residential increases are only 6 %. I object to you punishing us Minican users who are trying to get to Palo Alto's stated goal of ZERO WASTE. We are able to get all of our garbage into a Minican (20 gallons) because we have been so careful to recycle. Please revise the proposed rate increase for us Minican users. Thank you, Jutlt-Av:? ~£ Judith F. Creek 4ge,'F~AveIlUe" Palo Alto, CA 94306 Palo Alto Utilities Account Number ClTV OFPAL1) ALTO.CA ClTYCL.ERK'S ,OFFICE 564 G . A U)AUG' '1 AHIOi 51 eorgla ve. Palo Alto, CA 94306 August 11, 2010 City of Palo Alto Public Works Dept. PO Box 10250 Palo Alto, CA 94303 Dear Dept. Officials,'/ This letter is in response to your proposed refuse rate changes. would like to voice my opposition in raising the rates. I am retired and, on a fixed income, which is strapped to the limit at present. Any increase in my utility bill would be viewed as a hardship. My suggestion for lowering your department's cost would be to have the street cleaning less frequently. Thank you for your clarity one this matter, Susan Cashion (address above) CITY PALO ALTO RECEIVED, AUG 1 2 2010 PUBLIC WORKS ENGINEERING August 20, 2010 City Clerk City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 9430i CITY OF 'PALO ALTp. CA CITY CLERK'S OFFICE 10 AUG 25 AM g: 51 I wish to submit my protest for the proposed City of Palo Alto Refuse Rate Changes. After doing our part to reduce the amount of garbage we generate from our home, and now using a 20 gal cart, you are proposing to raise our monthly refuse rate by 33% from $15 to $20. No other proposed refuse rate increase is this large. It is unacceptable to increase rates this much for those who have done the most to reduce the amount of household garbage they generate. If we had continued to generate enough garbage weekly to need a 32 gal garbage cart, the proposed rate increase would only be 6% from $31.00 to $32.86. Even those residential customers generating far larger amounts of garbage each week and needing pick up of six 32 gal cans three times each week are only getting a 6% increase. All of the other proposed refuse rate increases appear to be no more than 6% for that matter. A 33% rate increase from $15 to $20 is unacceptable for the 20 gal cart weekly pick up residential customer. Our rates should not be going up at a higher percentage than all of the other proposed refuse rate increases. 11I1~w R. Victor Varney ~. 551 Ha.leStreet Palo Alto, CA 94301 Parcel # 003-05-021 CITY Of PALOALJO.CA CITY CLERK'S OFFICE ". '-: . , 10 SEP 13 AM II: 0" City Clerk of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 To Whom It May Concern: September 1 0, 2010 I am writing to protest the proposed changes to the City of Palo Alto's refuse collection rates. I currently receive service with the mini-can for $15 a month. You are proposing to increase that rate to $20 per month, a whopping 33-113 percent! Frankly I feel you wish to penalize my household for being terrific recyclers. My mini-can only goes to the curb once or rarely twice a month, a service I don't feel should cost me $20. I know I am also paying for recycling, but that can also does not go to the curb every week. Sometimes it goes every other week and often even less frequently. As I said previously, I am writing to protest your proposed increase in refuse rates to begin on bills dated October 1,2010. Yours sincerely, () 17 J'lt\./«-,0(,V{~/~'{..k'~ yc.:)60t/LQ.j,-- Mary Ann03aker 940 Hamilton Avenue Palo Alto, CA 94301 650-326-6976 Deborah Williams 1625 Hamilton Avenue Palo Alto, CA 94303 August 23, 2010 City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 Dear Palo Alto City Clerk: CITY OF PALO ALTO,CA CITY CLERK'S OFFiCE 10 AUG 26 AH 10:"'3 I am a resident of our city, and I am writing to protest the nroposed refuse rate changes. My city of Palo Alto Utilities account number is:- Deborah A. Williams \ CITY Of PALO ALTOf CA CITY CLERK'S OFFICE 10 SEPI5 AM 9: I' . City Clerk City of Palo Alto 250 Hamilton Ave. Palo Alto, CA 94301 Seong-Wook Joo 3708 Heron Way Palo Alto, CA 94303 Sep. 11,2010 RE: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto In response to the City of Palo Alto's July 29,2010 Notice of Proposed Refuse Rate Changes, I am writing to protest the proposed rate changes for refuse collection services and the imposition of a "hard to serve" fee on certain areas that the City claims must be served with "special equipment. " In particular, the increase in the proposed rate is greatest for·the smallest (20 gal) can. This gives me the impression that the City is discouraging the production of less garbage. Also the Notice implies that there were residents who have been infoni1ed of the option of converting to curbside service but I have never been informed of such an option. My City of Palo Alto Utilities account number is My Assessor's Parcel Number is 127-68-062. Sincerely, .. ·hWcnt1<-It'o Seong-Wook Joo My address is 3708 Heron Way. From: Qing Gao 3711 Heron Way Palo Alto, CA 94303 To: City Clerk City of Palo Alto· 250 Hamilton Ave. Palo Alto, CA 94301 September 9, 2010 RE: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto CITY OF PALO AI.JO.CA CITY CLERK'S OfFICE 10 SEP 13 AM U: Ott In response to the City of Palo Alto's July 29,2010 Notice of Proposed Refuse Ra!e Changes, I write to protest the proposed rate changes for refuse collection services and the imposition of,a "hard to serve" fee on certain areas that the City claims must be served with "special equipment." Sincerely, r9i0 67t4fV QingGao City of Palo Alto Utilities account number: Assessor's Parcel Number: 12l-bg--052 \ September 9 , 2010 Trinhthi Tran 3721 Heron Way Palo Alto, CA 94303 CITY Of PALO ALTO. CA CITY CLERK'S OFFICE 10 SEPI3AH >tl:Olf Re: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto In response to the City of Palo Alto's July 29, 2010 Notice of Proposed Refuse Rate Changes, I write to protest the proposed rate changes for refuse collection services and the imposition of a "hard to serve" fee on certain areas that the City claims must be served with "special equipment." My City of Palo Alto Utilities account number is _ My address is : 3721 Heron Way. .'alo Alto, CA 94303 Sincerely, Thank you. Trinhthi Tran August 24,2010 To Whom It May Concern: CITY OF PALO ALTO, CA CITY CLERK'S OFFiCE . . . .~. to SEP -I PH 3:2& Weare protesting the rate increase on refuse. We do not think it is fair to raise the rates just because the Council members can not agree on cutting some jobs or taking a decrease in salaries. We do not wish for anyone to loss their jobs. Other cities are making their employees take a salary cut. The city just can't pass on their problems to the residents of Palo Alto. Everyone has to help in some way. We believe they should take care of it like everyone else and not make us pay for their problem. We also believe that this will become a pattern. If they do not want to cut jobs or take decease in salary just raise the rates on something for the residents. That is not fair to the residents of Palo Alto either because we have to make adjustment too. Wouldn't it be nice ifthe residents of Palo Alto could not pay a bill they could pass it on to someone else to take care of. This is unfair to everyone in Palo Alto. They should look into some other way to solve this problem instead of passing it on to the residents. Jack & Gail Eny 3020 Higgins Place Palo Alto, Ca. '94303-4009 '~, ,lAte -r-~ 11-. 0~ ~-r ~~ -fl\t. ~ ~ ~Lfu ~lA;-1/\htv't? ~k J ~ AVN j 2/ -3 o-O~.=t -, ft;Jn A tiC) ) / \,4~ peI}4~·~ ~\+~ ·t:AcQ.u4 , ~~ \,,,~h+h,L~~~t ~~, J.~ CV ~ ~ UVY--W ~~ .IV 3''S'; 10 1v1~uL w.J.v~ ~t\vL V~ OAL.. ~4 ~ .~ } () % ~. fj-l'~~ 0/vv'llv -iJYfU.~Q City Clerk 250 Hamilton Avenue Palo Alto, ca, 94301 ~~[];J£W I&)~{j}j'~ rPJ5'ah~ cg~94301 Re: refuse rates for 185 Island Drive Parcel number: 003-11 ~004-00 CHY bfPAl.O.A,LHJ. ·,CA CllY CLERK'SOFFl~:E .i:" , , tQ.-AUGI·1 . PH \i :$,1 ~~ August 6, 2010 This letter is my formal written protest against the proposed changes to the city refuse collection rate. I understand that the City is facing a large deficit. This to me appears that it was due to mismanagement of the city's budget. I would ask the Council to first deal with the problem of escalating costs of salaries and retirement benefits of the pUblic-sector unions. Like California's, the Palo Alto's public sector seems dysfunctional and has gained too much power. We read that the public sector unions extracted from the state and cities exorbitant pensions obligations. According to the wall Street Journal of August 6,2010 the retirement funds of California now have a staggering debt of$500 billions. In time of poor economic growth, when most of us are faced with decreased salaries or layoff, it is not the time to increase taxes (direct or indirect). The obvious way to balance the budget would be to cut staff and to stop the escalating salaries and benefits. I do not want to bear the burden of the council's inability to act with fiscal responsibility and prudence. I am therefore protesting against the proposed refuse rates' increases and asking the Council to address the real problem of escalating costs from the public sector. s~~ Laure Mazzra, md \ City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 Re: 4174 King Arthur Court Palo Alto, CA 94306 Utilities Account Number: August 8th, 2010 Dear Sir or Madam, GREGORY KOVACS 3605 N. 14th Street Arlington, VA 22201 USA Phone: (703) 243-1123 Email: kovacs@cis.stanford.edu CITY Of PALO A .. CITY CLERK· ·s OLJ'O.CA •. . tFICE 10 AUG I Z AH 8=30 I am writing in response to the "Notice of Proposed Refuse Rate Changes," dated July 29, 2010. First, let me dispel any potential misconceptions that while I am not presently occupying my Palo Alto home while here in the DC area (serving in a federal government position). If anything, paying all of that property tax and fees while receiving few of the benefits makes me even more interested in such matters. Fundamentally, . I am protesting the proposed fee increase because the City apparently considers refuse collection fees as a means to recoup costs of services that are received in a very unequal manner by those who pay those fees. Specifically, I point to the language in your letter, "Refuse Utility collection rates are imposed in order that the City may recover its costs of collection, processing, recycling, composting and disposing of materials as well as the cost for providing weekly street sweeping, monthly hazardous waste collection programs, and extensive waste diversion services." Why should these fees cover more than collection and handling of refuse and recycling items? Street sweeping rarely occurs in our cul de sac. Why shouldn't those who produce/dispose of hazardous waste pay for this? Why should refuse collection fees offset "waste diversion services?" August 5, 2010 City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 Dear Sir/Madam: CITY OF PALO,ALH1,' CEA CITY CLERK'S OfF C ~ 10 AUG -9 PH lttiO I am the property owner of 3861 La:..Ilmu:a.Ammvc, Palo Alto, utility account number [ am writing to protest the unfair and inordinately high increase in my waste collection rates proposed for September. One or two years ago, in response to yet another increase in rates, I opted for the mini can service at my home. I diligentlyrecycie and try to limit my household waste as much as possible. Generally, I have one bag of garbage per week. The proposed rate increase of 33% for mini can subscribers is outrageous, especially in light of the average 6% increases given to those who produce more waste. I do not understand the rationale and justification for such a huge disparity in increases. Further, I believe it establishes a disincentive for people to produce less household waste. Increases ~ rates should be approximately equivalent for all rather than disproportionate. Sincerely, ~ ~luA 77, i:Pu1MlL- Elizabeth L. Grover August 112010 City of Palo Alto. Account number ~-- 132.Lois Lane,Palo Alto,Ca~ 94303 ·" f>lTY O"F RALO.A\..lDtCA ~bITyeLERK'S OfF"Ci It1AOOI6 AM 9t It~ We would like to protest the proposed rate increases for the refuse collection.We feel that at a time when everyone is being asked to cut back it is not appropriate for refuse rates to be raised. Sincerely ~~ . . Margaret Pia~:.1fU(..irc~ ~i~nca ·CS~ ,f/ C'-1 ~J. -'I ?cdo a&, CITy OF PAtO ALT CITY CLERK'S ()F~clA d'SO II~~ U<-L, '? aLo aib (Sc; 9' 'Sf 3 () I {ltJUtk?70 r (I ~Le X~ 33 g-s eX~, XcJ-a-L PtlL-b a~;;-C/t 9q303 ~/CA-('A_-P.r /1~.....-C·L-t./'u,' 10SEP 13 AM II: 06 ~~~~~--I~ c7~=-~~-& ~.(,1~d -;:ti ,_,.~-I--(.9t/1<--<-'~ (1,1..-/ ~~1?_, {lt~ 'f-. {! {UUlJ. ~~~ September 9, 2010 City Clerk City of Palo Alto 250 Hamilton Ave. Palo Alto, CA 94301 CITY OF PALO All CITY ClERK'SOr?t'c'tA rOSEP 13 AM 11:04 RE: Proposed Refuse Rate Increases and "Hard to Service" Charge To: City Clerk, City of Palo Alto In response to the City of Palo Alto's July 29,2010 Notice of Proposed Refuse Rate Changes, I write to protest the proposed rate changes for refuse collection services and the imposition of a "hard to serve" fee on certain areas that the City claims must be served with "special equipment." My City of Palo Alto Utilities account number is _ ~_~~./V. My address is:935 Mallard Lane, Palo Alto, CA 94303. My Assessor's Parcel Number is 127-68-003. Sincerely, Kok Hoong Chan 935 Mallard Lane Palo Alto, CA 94303 August 31, 2010 Palo Alto City Council 250 Hamilton Ave. Palo Alto, CA 94301 Re: Refuse Hike Rates. To the City Council: GlTYQF PALO ALTO,CA CITY CLERK'S OFFICE , 0 SEP -7 AHfO:Ol I hereby object to the proposed raise in the refuse rates as projected. I, personally, contribute a small amount from my household and find the rate increases prohibitive. ~:~~y, \f((.~e~ 1380 Martin Ave. Palo Alto 94301 Account #7 Inge Infante 1110 Middlefield Road Palo Alto, CA 94301 Acct. #. Parcel #120-06-0375 City Clerk 250 Hamilton Ave. Palo Alto, CA 94301 August 24,2010 Re.: Refuse Rate Change I am protesting the proposed rate change for refuse collection. :.:. .~ ... I have a 20 gal. refuse can, which is never full. In fact, since I follow your wonderful recycling program, I have only one small bag of refuse, which fills the can to 1/3 of capacity. I find that the present rate is too much, an increased rate would be way too much. A collection schedule of every other week would be a welcome adjustment that I could live with. I understand that the recycling program is so successful that there is not enough garbage to satisfY requirements. What will happen when the stated goal of zero refuse is achieved? Will we pay even more for having even less garbage? Has anyone thought this through? I feel that the customer should not pay for the poor planning of the city's refuse service. Please reconsider the price increase. Inge Infante 1 I ~'-' I) /r0iJ,0 .... Le. ~. , · .; .~.; .. ~:; Protest of Refuse Rate Increases I wish to protest the proposed refuse rate increases. They aIJ{flmifF' AtIflQf<Oti be applied inconsistently. I urge the City Council to reject them wnen they are considered in September. Certain proposed rate increases are especially excessive and inappropriate. The 33% increase in mini-cans from $15 to $20 is completely unjustified and grossly excessive. In contrast the struidard 32 gallon can rate would be increased less than 6%. For decades it has been formal city policy to encourage recycling and reduce trash volumes. This has been very successful, already extending the life of the dump by more than 12 years. We have reduced our trash volume and increased recycling so much that we rarely even fill the mini-can. Our·reward for being responsible and reducing trash volume would be a 33% rate increase. This is obnoxious and must be reduced to an increase of less than the 6% for regular sized cans. ~other unreasonable proposed charge is $14.42/month in "hard to service areas", mainly private streets in newer developments. PASCO was able to service these areas with narrow streets for many years at no added cost. Why is Greeen Waste unable to provide equivalent service? In addition the identification of "hard to service areas" is inconsistent. For example, some public streets in Barron Park are less than 17' wide, narrower than any of the private streets in places like Arbor Real (Hyatt Rickey'S site) yet they are not shown as "hard to service". The problem seems to be Green Waste, not simply street width. Please register our formal complaint per our Utility account: Yours sincerely, (Zrlwr~ Robert Moss 4010 Orme St. Palo Alto, CA 94306 -Q :x. c: CD N ~ ;ra :E 6 ... C) C» o!2 =4-1 -<-< n~ r-1Tl~ ::til> ;:J;'- uS° oJ> ."Cf ~o on "'l> August 23, 2010 e/TYOF A CITy CLE~KL PsAo· LTD. CA . . ·FFleE '·0 AUG 27 'D", 12· .... rn .:23 RE: Notice of Proposed Refuse Rate Changes Dear City of Palo Alto, This is not a protest of the rate change, but rather a comment on how the rates are proposed to change. I think that the rates for smaller amount of garbage (20 gallon mini-can) should go up significantly less, on a percentage basis, than rates for larger amount of garbage. In the proposed increase the mini·can goes from $15 to $20 per month-a 33% increase. Whereas the largest amount of trash carts you list on the table goes from $192 to $203.52-and increase of only 6%. Our family is moving from one 32-gallon can to a mini can, trying to follow the many urgings of the city to use less and recycle more. By raising the mini-can rates as you have proposed you go against your stated values. S~~erely, [) -'T'h-~. ,~. ~. " ~/~ -------i ..? Rayme rna 1280 Pine Street Palo Alto, CA 94301 August 21, 2010 To Whom it May Concern, CITY OF PALO ALTO, CA CITY CLERK'S OfFICE 10 AUG 25 AM 9: 52 We are officially protesting the recently suggested rate increases for the garbage service. John and Valerie Wookey 1420 Pitman Ave. Palo Alto, Ca 94301 3351 Saint Michael Court Palo Alto, CA 94306 To Whom It May Concern, CITY Of PALO ALTO.CA CITY CLERK'S OFFICE 10 AUG 23 PH It: 0 I I am writing to object to the proposed refuse rate change for Palo Alto. We currently use the 20 gallon residential pickup service. The current rate is $15.00. The proposed rate is $20. This is a 33% increase. This far exceeds what is reasonable especially given today's economic times. Please reconsider the rate changes. Regards, ~/. I" ----~ ,; -~ IJ Aug 29,2010 Palo Alto City Clerk 250 Hamilton Ave Palo Alto, CA 94301 Re: Protest to increase in refuse rates TO WHOM IT MAY CONCERN: CITY OF PALO ' CITY CLERK'S iV?''cFEA 10 Sf? -, PH 2:07 This is my formal protest to the proposed increase in refuse collection rates for residential customers. I especially object to the 33% increase, from $15 to $20, for residential customers who use the Mini-can. This is the category that you most want to encourage residents to be in. It makes good common sense to keep this rate at $15 as an incentive for people to create less waste. Other rates are proposed to increase by 6% --I find any of the residential increases to be objectionable as residents seem to be doing a great job of cooperating with the city's plan to reduce waste. Having a 33% hike for the category who produces the least waste is completely out of line with good policy. Regards, ~~~ Susan C Neville Acct # ~ ___ _ 235 Seale Ave Palo Alto, CA 94301 August 7, 2010 City Clerk 250 Hamilton Street Palo Alto, CA 94301 To Whom It May Concern: ClIy OF PALO CITY CLERK'S ~'1ftbiA 10 AUG I BAH!: So I protest the proposed refuse rate increases in your letter dated July 29,2010. !J~~-'--- City (sf Palo Alto Utilities Account Number: 4374 Silva Ct. Palo Alto, CA 94306 ATTN: City Clerk Palo Alto City Council 250 Hamilton Avenue Palo Alto, CA 94301 RE: City of Palo Alto Utility Account Number ~ Dear City Council Members: C. lTY OF PALO. A Ll'O· . C.A CITY CLERr.t·S· h ..•. . n uFFI'CE August 11, 2010 '0 AUG , 3 AH ':5, ',31 Tevis Place I am writing to protest the proposed increases in refuse collection rates as detailed in your letter of July 29, mandated by Proposition 218. Whereas voluminous tables are provided describing what the rate increases will be, there is no information whatsoever about why the rate increases are needed or justified. I recognize that the City of Palo Alto, like many other communities and counties, is facing serious budget shortfalls. I am also more than willing to pay taxes and fees as necessary to run an efficient and effective city government. Your letter falls far short of explaining how these rate increases meet these criteria. It may be that you plan to offer more detail at the meeting scheduled for September 20, the deadline for any protest, but this leaves no time for useful discussion or consideration. This situation reminds me of the way the City of San Jose handled its rate increases for its contract with Norcal Waste Systems -lots of numbers and hot air but little in the way of substantive explanation of what was really behind the increases. In this day of growing distrust for governmental management and processes, your letter· has done little to instill confidence and provide an open business-like explanation of why these refuse rate increases are needed. For these reasons I must file this protest against the proposed rate increases. Should you be able to provide a more compelling reason in the future, I would be happy to reconsider your proposal. Sincerely, Thomas C. Rindfleisch 31 Tevis Place Palo Alto, CA 94301 Herbert & Alice Fischgrund City Clerk City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 ·750 Torreya Court Palo Alto, California 94303 June 5, 2010 I protest against the proposed charges for refuse collection as listed in the "Notice of Proposed Refuse Rate Changes" in the letter from the City of Palo Alto dated July 29" 2010. I protest because the proposed rate structure unfairly penalizes those who have been most diligent in responding to the City's requests to reduce refuse. The proposed rate structure raises the fee for a 20 gallon mini-can by 33% while increasing only 6%for those less diligent. This is inconsistent with the Zero Waste policy the city adopted several years ago. I protest because the City has been encouraging residents to reduce their refuse by separating recyclables and compostable yard waste from the refuse stream. The City also has been offering classes on food waste compo sting which I took and have been following for a number of years. My backyard compost bin results in our filling our 20 gallon can less than half full most of the time. The City gives rebates to encourage installation of solar electric systems even though this decreases the revenue of the City's electric utility. Similarly, rebates are given for water conservation measures. The city should likewise continue to encourage trash reduction. Any penalty resulting from the Kirby Canyon contract should be assessed on an equal percentage among all customers. Better yet would be to apply some creativity. Find a way to eliminate the penalty by renegotiating the contract or selling the unused capacity to another entity needing it. mid Herbert Fischgrund , Utility Account No. oJ' City Council, City of Palo Alto, CA . .f:' '.::i '. Of CITY (IF PALO ALTO,CA CITY CLERK"S OFFICE 1'0 AUG 26 AM to: 45 City of Palo Alto Utilities account number: . Dear Sir/Madam: Bingxin Ou 1125 Tuolumne Ln Palo Alto, CA, 94303 Re: Proposed Refuse Rate changes -letter of July 29, 2010 from City of Palo Alto In accordance with the above notification from the City of Palo Alto, please consider this letter as my formal protest to the rate increases. Sincerely, 8(~t~ ~ ~sf ]4)ib r\ :~(Jft1-~ ,j / s~ 9 if .",,?;<1.':7·1"-.e:~1/\AJI f---f>. ('.: ... e-'1,,~ .. 4,A.:...~dZ..~~,- ./ \./ /J _ ~£.A;..._""J:."'-R .. k.21 { I ."'LY'6·· <2.-<.A"'C.'1 , / /:' ;Z:..i .. " ·e:~.~ ./}.{ . ..tl!~£.L_ -o .. • .... w g VI CIt o. Schul arratt 832 Waverley St.' Palo Alto, CA 94301 City of Palo Alto Utilities # .. ______ -=- City Clerk 250 Hamilton Ave Palo Alto CA 94301 To Whom It May Concern: CITY Of PALO ALTO, CA CITY CLERK'S OFflCE 10 SEP -1 ,PH 2: 01 Per the notice that was sent on July 29,2010, we are writing to protest proposed rate increase~ to the City's refuse collection services. Sincerely, ¢tt C13~J{O City Clerk City of Palo Alto 259 Hamilton Ave. Palo Alto, CA 94301 August 21, 2010 Dear City Clerk: I would like to submit a formal written protest concerning the proposed increase in refuse rate charges as outlined in the city's letter to me dated July 29,2010. My utility bill has been getting larger while my income has been shrinking due to the economy. I am considering leaving the green energy program because of the high , cost of utilities -does the city really want me to do that? No justification for the proposed increase is given in the letter I received. It seems to me that $15 should be enough to cover the cost of picking up one mini-can a week, plus my recycling bin and yard trimming bin about once a month. My address is 2782 Waverley Street, Palo Alto, CA 94306 and my parcel number is 132-13-016-00. . Thank you for your consideration. Sincerely, Frances M. Adams CITY Of PALO ALTO.CA CITYCLERK'S OFFiCE 10 SEP -7 AM 10: 01 City of Palo Alto E.R. & N.M. Oblander ". 3130 Waverley Street . Palo Alto, CA 94306-2901 24 August 24,2010 RE: Refuse Collection Notice of proposed refuse rate changes. CHY OF PALO ALTO CITY CLtRWS O~F;C~A "0 AUG 27 PH 12: 21 Reference the above; we vehemently protest the increases proposed in your letter of29 July 2010. We go to great pains and effort to reduce our refuse to the absolute minimum. We sort and recycle as much as is humanly possible. The end result is generally a half of a very small plastic garbage bag per week (half of a 10 gallon size bag). The collections people come by and one simply reaches into the can and picks the small bag out with his gloved hand and flips it into the collections truck hopper. For being conscientious and honest citizens we will be penalized for our efforts at reducing land fill. The information (or is it propaganda) that we receive in your communications only informs us on what we must pay for this service. But to date we have never received information on what it costs the city to dispose of this pitiful small amount of refuse. We are not in the slightest adverse to recycling. As a matter of fact we did recycle for years before the City ultimately "discovered" this wonderful method of disposing of vegetative and paper refuse. RECYCLE. Our recyclables are meticulously sorted as well. Now we know that the increase in rates may, to you, seem extraordinarily modest for the vast majority of residents, but for two very senior citizens who have lived and worked here for over 50 years and who are on a retirement income based on the criteria set in 1957, we frequently fmd ourselves with too much month left at the end of our retirement .check. Just remember not every retiree in the City receives a $100.000 retirement. .~ ~blander ~~ ---- / September 1,2010 City Clerk 250 Hamilton Ave. Palo Alto, CA 94301 CITY OF PALO A . CITy CLERK'S OLF-ro. CA FICE: IO-SEP -7 AH 10: oe We are formally protesting the proposed rate increases on refuse collection rates. Account number __ 614 Wellsbury Way Palo Alto, CA 94306 August 13, 2010 City of Palo Alto Refuse Collection Re:act#, ____ _ 810 Wintergreen Wy Palo Alto 94303 Dear Sirs: CdrT\ °lL~~9s ~~Pt;lEA ~ 10 AUG 17 ,AM 10: 5' I received your notice of proposed rate changes. I have a mini-can which is usually % full. I protest such a huge jump in fee. I read in the PA Weekly re the contract problems and think you should re-visit! correct the contracts so they make sense. I also protest having to pay for recycling in the near future. I have lived at this address since 1964 and participated in recycling from the start -before city collections I set up a cardboard box collection in my yard and took some of my neighbors recycle items to the various drop sites. We Palo Altans have beer- very active in learning and practicing conservation and recycling and now green energy. It doesn't make sense to turn around and charge for pick up of recycle materials. That would send a bad message to the population when more folks are realizing that the global warming/conserve information is valid and must be acted on. Sincerely, Dawn Wilcox RN, retired Block Coordinator C~ .. ~WWel- TO: City of Palo Alto Utilities FRorvl: Frank Kwong and Caly Chiu CITY Qf PALq/~O·.LTll.··'·CCA CITY CLERK',j lFr:£ 10 AUG i6 -AM " .. Ii RE: Protests against the proposed refuse rate increase DATE: 8/7/2010 Utilities account no. ~ ~ ~_~ ~~ ~ Street Address: 837 Wintergreen Way, Palo Alto, CA 94303 Parcel no. 086-18-003-00 This is the formal written protest against the proposed refuse rate increase as per your notice dated 7/19/2010. Thanks. Frank Kwong and Caly Chiu 8/7/10 TO: City Council FROM: CITY MANAGER DATE: September 20, 2010 CITY OF PALO ALTO Memorandum 5 September 20,2010 DEPARTMENT: CITYMANAGER SUBJECT: Packet Addendum for Agenda Items # 5 and # 6 -High Speed Rail (HSR) The following documents are provided for Council review relative to discussions and policy directives made at the September 15, 2010 HSR Committee meeting: 1) The modified "No Confidence in the CHSRA" draft resolution approved by the HSR Committee on September 15; 2) The memorandum outlining HSR Committee policy direction relative to the SAAR; 3) The draft City of Palo Alto response letter to the FRA outlining HSR Committee opposition to a phased approach to HSR construction and operation as considered in the CHSRA's most recent FRA funding application; 4) The Hatch Mott McDonald (HMM) draft SAAR peer review report; 5) The City of Palo Alto response letter to the Bay Area to Central Valley Revised Final Program EIR. Please note, staff has been asked to request the City Council to review in advance the City of Palo Alto September 1, 2010 response letter to the Bay Area to Central Valley Revised Final Program Environmental Impact Report (EIR). This letter directly relates to Agenda Item # 6 (Closed Session on HSR litigation). 6 '--~W,~~ ar. JAMES KEENE S r City Manager , v"/"S Deputy CIty Manager raise the ire of the owners of the properties taken, both problems it would like to delay as long as possible. Low ball cost estimates are unacceptable. 3) Business Plan: There isn't one. Not a meaningful one. Various state officials-the -Auditor, the Legislative analyst-have pointed this out, quite pointedly. The "pl~" calls for $15 billion of private financing which is nowhere in sight. The "plan," rather amazingly, also calls for $5 billion from local governments. Not acceptable. 4) Relationship with the Authority: The Peninsula communities were frequently promised--even before the election--that our voices would be heard in designing HSR in our area. That has proven not to be the case. The attempt to use Context Sensitive Solutions clearly has failed. Certain Authority members have made it clear that, in effect, the railroad is coming through our community and we need to get out of the way. This is unacceptable. 5) Impact on the Community: The alternatives the Authority clearly favors will have major negative impacts on our community--reduction in residential and commercial real estate values, traffic, noise, vibrations, east/west division--with little or no benefits to us. As one of our neighboring communities put it, "'Aerial orientation' and 'viaduct' are [the Authority's] euphemisms for constructing the equivalent of a six-to-eight-Iane elevated freeway through the middle of our cities." This is unacceptable. ( Action The City Council of Palo Alto hereby declares that it has No Confidence in the California High Speed Rail Authority or in the High Speed Rail Project as presently planned. The City Council expects to take further action if the Authority does not immediately establish a truly responsive and transparent relationship with affected communities and present viable plan alternatives for the project. The City Council continues to believe that Caltrain is the indispensible backbone of our local and regional transit system and that it must have a permanent, dedicated source of funding and that it should be appropriately upgraded. Palo Alto is fully cOmInitted to collaborating with other Peninsula cities and counties to help create a dedicated funding source for Caltrain and its needed improvements. The City will advocate publically for a Policy Advisory Committee for the Peninsula Corridor Joint Powers Board (JBP), appoint a Council Member as a liaison, and contact all Peninsula Cities to do the same including those municipalities with out a rail corridor. The City will advocate that the JPB will be reconstituted to include representation of the northern Santa Clara County cities. 1) The City will urge the Governor and the State Legislature to cease HSR fundhIg, remove the present CHSRA Board andlor create a new governing mechanism for HSR. 2) The City will write a letter to the Federal Railroad Administration (FRA) for the purpose of communicating our position of "no confidence" in the CHSRA and defending our interest in Caltrain. The City will also write a letter to the FRA supporting permanent Caltrain funding. 3) The City will coordinate and communicate with like-minded California cities in order to make our positions set forth above more effective. 4) The City will provide copies of this Resolution and supporting materials to: the Governor, our State legislators, United States Senators, Member of Congress, the California High Speed Rail Authority, neighboring communities, and other interested parties. 5) The City will continue to actively engage in the process of responding to the CHSRA to defend Palo Alto's interests. TO: City Council CITY OF PALO ALTO Memorandum -5 September 20, 2010 FROM: CITY MANAGER DEPARTMENT: CITY MANAGER DATE: September 20,2010 SUBJECT: High Speed Rail (HSR) Committee Supplemental Alternatives Analysis Report (SAAR) Policy Recommendations On September 15, 2010, the Palo Alto High Speed Rail (HSR) Committee made policy recommendations concerning the California High Speed Rail Authority (CHSRA) Supplemental Alternatives Analysis Report (SAAR). Further, the HSR Corilmittee concluded the CHSRA did not meet its own alternatives analysis criteria for evaluating project impacts and design. The following policy directives were approved by the HSR Committee 4-0: • Support continued full analysis of the cut & cover alternative based on the Hatch Mott McDonald (HMM) review of the SAAR; ! • Strongly oppose SAAR Alternatives A and B but support further consideration of an open trench or partially covered trench alternative so long as it is not greater than 82 feet in width, does not create noise and vibration impacts greater than what presently exists, and does not impact the traffic capacity of Alma Street; • Support below grade alternatives through Palo Alto that are equitable to North and South Palo Alto and do not support SAAR Options A and B as they are not equitable to North and South Palo Alto; • The CHSRA should be responsible for paying for all project and project mitigation costs; • Do not support phasing of HSR construction or operation in Palo Alto because of consensus that the said alternative could result in potential impacts including, but not limited to, traffic delays, a degradation of scb,ool commute safety, a decrease in real estate property values, and an increase in emergency response times. For additional context related to these policy directives please refer to the August 24,2010 SAAR staff report and the HMM draft SAAR peer review report as these policy directives were primarily based off of material contained within those two documents. C September 20,2010 Mr. Ray LaHood, Secretary US Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Mr. Joseph C. Szabo, Administrator Federal Railroad Administration 1200 New Jersey Avenue, SE Washington, DC 20590 Mr. Peter M. Rogoff, Administrator Federal Transit Administration US Department of Transportation East Building 1200 New Jersey Avenue, SE Washington, DC 20590 Mr. Calvin L. Scovel III, Inspector US Department of Transportation 1200 New Jersey A SE Washington, DC 205 Mr. MarkE. Y 1200 New Jersey Washington, DC Dear Mr. LaHood, Mr. Szabo, Mr. Rogoff, Mr. Scovel, and Mr. Yachmetz: . 5 • The City of Palo Alto is writing regarding the recent California High Speed Rail Authority (CHSRA) application to the Federal Rail Administration (FRA) for $1 billion in funding for the proposed California High Speed Rail (HSR) project segment from San Francisco to San Jose. 1 Table of Contents 1.0 Introduction ............................................................ : ...................................................................... 1 2.0 Peer Review ................................................................................................................................... 2 3.0 Response to Questio~ ................................................................................................................. 9 4.0 Summary ...................................................................................................................................... 13 Table of Appendices Appendix 1 Potential Construction Process for Trench Option ~ Appendix 2 Attachments for Comments 37 and 38 '" "' No. Pg. SAAR Comment Section The construction process for each option is similar. The principal difference between the two methods involves only the construction of a roof on the trench structure, and placing a limited depth of backfill. On this basis the difference between the costs is not credible. CHSRA should provide the basis for the difference in the cost figures. 32 AppendixL There is insufficient detail provided to confirm the reasonableness of the unit prices adopted for structures. CHSRA should provide backup information to support the figures adopted for the comparison. 33 AppendixL General comment: All costs in Appendix are noted to be 3rd quarter 2009. The current economy and bidding climate would indicate that these costs would still be valid for 3rd quarter 2010. 34 AppendixL The cost elements are organized and listed according to the cost model as defined by Parsons Brinckerhoff. It is unclear in Appendix L who has established the unit costs. 35 AppendixL It is noted that ROW costs are not included his would be normal since ROW costs are not part of direct constru costs. 36 AppendixL The overall cost totals for Subsection 6 ;re fa d reasonable in our opinion. 37 App. L -Cost The cost fm 3600 ft of 78.5 ~vated guideway supporting fow Estimate tracks is estimated at $35.8 T' s equivalent to $127 jsq ft. In our experience this unit rate is 10 80 -100%. We recommend the unit rated for all the structure types s n be revisited. This comment applies throughojlt the cost estimate (see Appendix 2). 38 App. L -Cost As noted ill OOnfu~ve, some 2750 ft of four "ad configuration Estimate is on retained fill u 30' m height. We did not find a cost estimate for this element of the rk (see Appendix 2). Other Comments ~ 39 Draft memo In ---. is noted that FRA has agreed to use 2 % instead of 1 % for (08.16.10) HSR. the CAHSR design criteria I've seen, greater than 2% is from the City permiss Ie in some cases although not desirable. I don't know why Managp ...... FRA would mandate a max grade of 2% which is an operational issue as ~~ tOpposed to safety issue. FRA is generally more concerned about safety. I wonder 'if this comment is stated in the proper context. 40 54 Summary"V' Plan, profile and sections figures (Sheet 1 through 3 of 3) for the San and Design Francisquito Creek crossing were provided in an email. These figures 4-45 Option B, show the creek crossing options (new rail bridge and mined tunnel) for 4.3.7 Options A and B. These sections provide a very brief discussion of this Subsection 6 -data. Similar crossing will likely occur beneath the road and creek Palo Alto, underpasses within Subsection 6. Please revise these sections to reflect Options these additional underpasses and include the figures referenced above Carried in Appendix B and C. Forward,and AppendixB & C 81Page The construction process for the covered trench, which is cut and cover, and the open trench are almost identical. The covered trench requires an additional couple of processes for the installation of the roof slab and the placement of backfill across the roof of the structure to allow surface restoration. In addition the covered space requires mechanical ventilation for use in the event of an emergency incident, and space for ventilation equipment. While each of these items has its own associated cost, what is apparent from the CHSRA analysis is that these additional costs have been either overestimated, or the costs of the open trench have been underestimated, as the two construction costs should be relatively consistent. Q5. What are the estimated right of way costs? As discussed, this question cannot be answered at this time. Q6. Will having a station increase/decrease traffic trips in the city; will it attract regional traffic trips into the City of Palo Alto? Probably yes to a local traffic increase, although the overall state wide would likely decrease if sufficient transfers from autos take place, but the stations are still ~to be a hotspot. Q7. What impact will a High Speed Train (HST) have on CalY;ai~ Caltrain could act as a feeder service and reduce the num of auto trips from intermediate stations on the Caltrain line. A HST could steal revenu altrain for trips where they both stop. For some routes HST reduces predicted journey . more than half and users who are prepared to pay a higher fare'may choose HST service over ltrain. It could also generate new trips to San Francisco, etc. The specific impact of a HST on Caltrain is difficult to determine without specific ridership figures. ~ Q8. Will having a station and the dollars s~t on a mid-peninsula station take away dollars from other HSR compo~e ? It is possible that a mid-penins uld divert resources that otherwise may have been spent elsewhere. However, witho detailed breakdown of CHSR resources and intended uses we cannot say definitively if this is ill case. Q9. What are t~tion impacts associated with a HST facility? An HST station facility ~ts a major construction undertaking. HST platforms are approximately 1,380 feet in length, or the equivalent of several city blocks. Due to its size, there are significant impacts associated with the construction of an individual station, including noise and vibration, utility relocations and traffic impacts resulting from diversions, lane restrictions due to construction and utility relocations, and construction induced traffic. However, as the station will be constructed as part of a larger system, the additional impact of the station construction itself will be negligible. It is also likely that the addition of an HST station will spur significant development in'the station vicinity. The impacts of this development, and the construction impacts associated with this development should also be considered. Ultimately these impacts are short term and need to be evaluated relative to development opportunity that may arise from the station location in any future masterplanning for the City of Palo Alto. Ql0. Is CHSRA doing a detailed traffic analysis for HST? lllPage Based upon the available right of way (as shown on the plan/ profile drawings) and the proposed right of way width for each of the options it is anticipated that the construction of the CHSA system will result in temporary traffic impacts during construction. For aerial segments temporary traffic lane closures will be required to enable the construction of temporary formwork to facilitate bridge construction. The permanent bridge structures should generally be located such that existing traffic lanes and clearances on Alma Street are maintained. However, in segments 6A-6C, there are areas where the width of the proposed structure exceeds the available right of way by up to as much as 36 feet. In these areas some reduction in the capacity of Alma Street will result. For the trench option, lane closures will be required to allow the installation of the walls which support the trench excavation. After installation of these walls, temporary panels can be installed to permit the full operation of Alma Street at current levels of service. With either trench option there will ne no permanent reduction in Alma Street capacity. With a cut and cover trench option the traffic lanes can extend over the str]1cture. With an open trench, the trench can be partly covered as necessary to maintain the capacity of Alma Street. 4.0 Summary ~ The Supplemental AA presents modifications to the proposed co=tru~ alternatives for the Peninsula segment of the CHSRA alignment based u~ moderated meetings with Cities and Agencies, and. on the results of more advanc n' eering analysis, which has resulted in the 'stitching together' of the Peninsula se form two principal construction Options-designated A and B. . HMM has undertaken a review of the SAAR ~n behalf of the City of Palo Alto, which has focused on the following specific issues; • The clarity of the information rovided • The type and extent of ea various construction alternatives and the reasonableness of the assumptions rela s being continued to further study or rejected. • The physical operation of shared corridor • Technical issues with a direct pact upon project cost • The scope, cgfY and reasonableness of the alternative cost estimates The technical review e ort has resulted in a number of review comments which are included in Section 2.0 IS report. However, we offer the following conclusions/ concerns with the SAAR for the consideration of the City of Palo Alto. • While we understand the desire to limit the number of alternatives to be studied as part of the CHSRA EIS, the basis for the rejection of the covered trench and deep tunnel options is not substantiated. Construction impacts cited for the rejection of both alternatives also exist for the open trench option. The construction process for the open and covered trench options is almost identical, as are the constructabilityjssues. • The cross section used for the calculation of the open trench cost -which is stated to be a shallow trench -is not consistent with the plan profile drawings, which suggest a much 13IPage Appendix 2 Attachments for Comments 37 and 38 September 1, 2010 Roelof van Ark, Chief Executive Officer and Board of Directors California High Speed Rail Authority (CHSRA) 925 L Street, Suite 1425 Sacramento, California 95814 G!)r of Palo Alto 6 Office of the City Manager Subject: Final Bay Area to Central Valley High-Speed Train Revised Final Program Environmental Impact Report (EIR) Dear Mr. van Ark, Board Chair Pringle and Board of Directors: The City of Palo would like to go on record asking the California High Speed Rail Authority (CHSRA) to not certify the above referenced Final Program EIR. The City has concluded the Authority has failed pursuant to California Environmental Quality Act (CEQA) to adequately respond to comments made by the City of Palo Alto. Here are the City's detailed comments: Standard Comment-9 This response acknowledges that the Union Pacific Railroad (UPRR) has expressed opposition to sharing its right-of-way for freight activities with the high speed rail project. The City has stated that UPRR's opposition to shared use of its right-of-way in the Caltrain corridor may be a fatal flaw in the further development of the Caltrain alignment alternative. The CHSRA states in its response that it will be better able to analyze the project's potential impacts on freight operations during the project-level analysis, which is likely an accurate statement. However, the CHSRA then states that, "[tlhere is precedent for UPRR working with proponents of commuter rail to reach mutually agreeable arrangements for passenger rail near UPRR freight rail." CHSRA then states that, "[tlhe Authority has had productive meetings with UPRR representatives on more than one occasion since receiving their April, 23, 2010 comment letter." These two statel'!1ents imply that the CHSRA pelieves that further negotiations with UPRR will result in a . mutually agreeable arrangement whereby the Caltrain alignment will be acceptable to both parties. While this outcome is possible, it does not directly address the comments regarding the infeasibility of the Caltrain alignment should UPRR continue to deny CHSRA access to share its right-of-way. CHSRA should have analyzed a range of other feasible alternatives, including those outside of the Pacheco corridor, when it determined that the use of the UPRR right-of-way might be infeasible. But instead, CHSRA focused on just one alternative, which was to shift the proposed alignment south of San Jose in order to move it out of the UPRR right-of-way. This shift of alignment may result in new impacts -such as impacts on traffic, land use compatibility, aesthetics, agriculture, noise, and air quality, and the requirement to exercise eminent domain -that are not addressed in the revised program document and need to be addressed. We request that the CHSRA study an Altamont alignment that would serve San Francisco to San Jose on one route, as described in comment 0009-2. l003-31 The City's comment states that the Program EIR does not adequately address funding sources for the project. CHSRA's response refers the reader to Comment L003-112, which addresses compatibility of schools with high speed rail projects. This response in no way addressed the comment. CHSRA needs to provide a detailed breakdown of funding sources, as the type of information provided to the public thus Printed with soy-based inks on 100% recycled p.per processed without chlorine p.o. Box 10250 PaloAito,CA 94303 650.329.2563 650.325.5025 fax far is too general and inadequate, and does not provide the City with the ability to assess whether the project would have access to adequate funding. L003-32 The City's comment states that project construction costs are not adequately addressed in the Program EIR. CHSRA's response states that the construction cost estimates are adequate, and lists examples of the types of costs that it claims are included in the construction cost estimates. This response does not provide the City with any information to confirm that the construction cost estimates are inclusive of all relevant costs, as no cost breakdown has been provided. CHSRA needs to provide a detailed breakdown of construction costs so that the City can assess whether all relevant costs have been considered, and whether the cost figures provided are appropriate. L003-44 CHSRA's response to comment L003-44 includes a statement that, "Caltrain would benefit from the creation of a fully grade-separate right-of-way, allowing trains to operate more safely by eliminating at- grade traffic and pedestrian crossings." This statement contradicts recent financial documents released by the CHSRA, which state that grade separations may not be included in the initial construction of the Caltrain alignment portion of the HST, and that such grade separations may need to be funded later by each local jurisdiction and built subsequent to commencement of HST operations. This statement raises further questions regarding traffic and safety, for if grade separations are not provided by the CHSRAat the time of project construction, then traffic and safety impacts would increase at the locations of the existing at-grade crossings with the increased volume oftrain trips. L003-S1 CHSRA's response to comment LO03-S1 includes the following statement: "Grade separating [in the City of Palo Alto] would generally be accomplisheq by either fully raising the railway over the street, or by partially elevating the railway and partially depressing the street." The Alternatives Analysis for the City of Palo Alto included four vertical options, including aerial viaduct, at grade, trench (covered or uncovered), and tunnel. The only option that was not included for the City was the elevated berm. Yet this response to comment L003-S1 seems to somehow eliminate any below grade options from consideration. The CHSRA provides no basis for eliminating the trench and tunnel options that were considered in the Alternatives Analysis. The CHSRA has indicated that the refinement of the vertical options would occur in a future, project-level analysis. The response to comment L003-S1 appears to be inconsistent with the review process. L003-S3 The statement that, "[t]he placement of HST tracks adjacent to the UPRR right-of-way does not increase the level of impact" is not credible. This is particularly so given the immediately previous statement that, "analysis already considered land beneath a road or railroad right-of-way as potential farmland." In other words, the HST tracks adjacent to the UPRR right-of-way would consume and/or impact farmland. The relocation of the alignment to be adjacent to the UPRR right-of-way could also have greater impacts on traffic, land use compatibility, aesthetics, noise, and air quality, and the requirement to exercise eminent domain, as s~ated above in regard to Standard Response-9. CHSRA needs to provide a program-level analysis of the impacts of this relocated alignment. L003-69 The statement that, "miles of disturbance can be helpful towards explaining differences in potential impacts between alternatives" misses the point of. the comment, which was that the severity or significance of impacts depends on what is encountered, whether the alignment is short or long. The sensitivity of the environment is what's important, not the miles of disturbance. A short segment of disturbance through a portion of critical habitat for a special status species, for example, could have a greater impact on biological resources than a longer segment of disturbance through a portion of habitat not occupied by any special status species. Miles of disturbance is a poor surrogate for environmental vulnerability or susceptibility to impacts. L003-84 This response misses the point of the comment. The question is not what the minority or low-income population is, but rather whether it is disproportionately impacted regardless of size. Threshold level identification of environmental justice populations does not help identify the potential for disproportionate impacts. CHSRA needs to provide information on whether minority or low income populations would be disproportionately affected by the HST project. L003-10S Part of the response, starting on line 8 (flUPRR's February 23 ... /1) addresses safety issues, which are not relevant to the comment itself, as the comment addresses the displacement of residents and businesses. The City believes that this comment has not been adequately addressed, and requests that the CHSRA provide information regarding the displacement of residents and businesses adequate to allow the City to assess these impacts. LO03-111 The existing active commuter and freight rail corridor does not currently have any aerial structures and/or sound walls, so their addition would most definitely constitute new physical or psychological barriers. These new features could have negative impacts on aesthetics and land use by creating physical barriers . within established communities. CHSRA needs to analyze these potential impacts and provide adequate information to allow the City to make an informed assessment of these impacts. L003-113 The response in no way addresses blight. CHSRA needs to analyze the blight affects that could result from the project's increased impacts to noise, vibration, traffic, aesthetics, air quality, land use, and property values. CHSRA has thus far not provided sufficient information on the topic of blight to allow the City to make an informed assessment of possible blight impacts. L003-140 The response misses the point of the comment, which is that it is the spatial extent of the impact, (e.g., noise contours, the deposition of air pollutants, or visual intrusion), and not an arbitrary distance from the centerline of each alignment alternative, that matters in determining impacts. Response to comment L003-42 is similarly inadequate. CHSRA needs to determine the actual potential extent of impacts for each impact category (noise, traffic, air quality, biological resources, etc.) and not use an arbitrary distance from the alignment centerline. The radius of impacts will not be a static figu(~, and will vary along any proposed alignment due to physical characteristics such as topography, type and intensity of development, and existing traffic and land use patterns. Additional Comments The City has an additional comment based on the traffic analysis information included in the Bay Area to Central Valley HST Final Program EIR/EIS. The City of Palo Alto is also very concerned about the volume- to-capacity ratio (VIe) calculated as part of the traffic analysis for the potential Palo Alto HSR station on page 3.1-9 of the Bay Area to Central Valley HST Final Program EIR/EIS. In Table 3.1-3, the CHSRA states that in 2005 Palo Alto had a VIC ratio of 0.85 at the proposed station location. However, the chart goes on to claim that by year 2030, either with or without HSR, the VIC ratio near that station would fall in a range between 0.47 and 0.50. The City of Palo Alto does not understand how such a drastic decrease in traffic could be assumed for the said location 20 years from now and especially when all of the other potential Peninsula stations show an increase in their V Ie ratio regardless of whether HSR is built or not. It does not appear to the CIty