20% of combined building inspection and plan review fee with a min. $192 charge Blank
20% of combined building inspection and plan review fee with a min. $192 charge Was left blank in published schedule (no change)
20% of combined building inspection and plan review fee with a min. $223 charge Blank
20% of combined building inspection and plan review fee with a min. $223 charge Was left blank in published schedule (no change)
Agenda Item No. 7.B. Revisions to published Master Fee Schedule (Exhibit A to the Resolution) Agenda Packet Page 342 of 360
FY 2022-23 Master Fee Schedule Revisions
Agenda Item No. 7.B.
Agenda Packet Page 343 of 360
Action Proposed
Conduct Public hearing and upon conclusion adopt a
resolution approving the FY 2022-23 Master Fee Schedule.
1. Addendum to Exhibit A - Proposed Master Fee Schedule details Updates for Community Development
Updates for Tobacco Retailer License Program Fees
2. Master Fee Schedule is basis for all City-wide fees and charges and is consistent with the City’s goal to achieve long-term financial sustainability.
3. The revenue generated by fees, charges for services and business license taxes will be included in the City’s FY 2022-23 proposed budget based on the Master Fee Schedule approved by City Council.
4. Strategy and approach
Remain consistent with applicable legal/regulatory restrictions and guidelines.
Consider Consumer Price Index from the U.S. Bureau of Labor Statistics for the Western Metropolitan Area as one factor during the cost review for providing programs and services. Analyze costs to decrease City subsidies as recommended in the State Auditor’s Report.
Maintain/reduce fees as necessary to align with other cities and organizations with comparable programs; and/or in some instances as in the Recreation Dept, the fee rate may be increased to offset costs of higher-level staff support. In FY 2021-22, the Fire Dept had significant fee increases and the FY 2022-23 proposed fee changes are primarily based on inspection times for various categories. Community Development plans to conduct an all-inclusive development fee study given rise in construction costs.
5. No new fees are proposed and generally a 4.0% increase is proposed as reflected in Exhibit A.
Agenda Packet Page 344 of 360
Proposed Collection Services
Agreement with East Bay Sanitary
Company
Effective June 1, 2022
Presentation to City Council
May 17, 2022
Agenda Item No. 8.A.
Agenda Packet Page 345 of 360
Agenda
History of Customer Satisfaction and Performance
Rationale for Negotiating a New Agreement
Negotiation Approach and Outcomes
SB 1383 Compliance Services
Service Enhancements
Electric or Zero Emission Vehicles
No Change in Compensation
Form of Agreement
Term of Agreement
Alternatives to Proposed Agreement
2 Agenda Packet Page 346 of 360
El Cerrito’s
Solid Waste
Services
East Bay Sanitary (EBS):
Garbage and Organic
Waste Collection
RecycleMore and Republic: Post-Collection Services
Integrated Waste
Management (IWM):
Curbside Recycling,
Recycling Center &
Related Services
3 Agenda Packet Page 347 of 360
History of Customer Satisfaction and Performance
EBS has provided solid
waste collection
service in the City
since 1942
EBS only provides
service in the City and
is incentivized to
respond to City needs
EBS has its main
offices located in the
City, which is a rarity
for solid waste
contractors today
In 2020, a performance
review of EBS was
completed,
highlighting good
performance
In 2021, EBS
conducted a customer
satisfaction survey,
which found 89% of
customers satisfied or
very satisfied with
services
EBS has consistently
been a good partner to
the City and the El
Cerrito community
4 Agenda Packet Page 348 of 360
Rationale for
Negotiating a
New
Agreement
The City needs to implement new programs and services for compliance with SB 1383 in 2022
The City has other interests in securing other service enhancements (multi-family dwellings, illegal dumping, etc.) The current Agreement expires December 31, 2025
EBS has an interest in lengthening the term for cost-effective capitalization of assets
The current Agreement provides for the City to negotiate a modernized and updated form of agreement
State law provides the flexibility to negotiate with current contractor or proceed to competitive procurement
Positive history of partnership, customers satisfaction and performance means negotiation is the best first step
The City retains time to proceed to competitive procurement if the new agreement is not approved
5 Agenda Packet Page 349 of 360
Negotiation
Approach and
Outcomes
Good faith negotiations were initiated in April 2021
EBS submitted proposal for new services and term extension in July 2021
Negotiation meetings proceeded through April 2022
City’s objectives were to:
Secure programs and services for SB 1383 compliance
Provide enhanced programs and services to ratepayers
Secure support for fire fuel reduction measures
Secure additional illegal dumping clean-up resources
Secure bulky/large item services for residents
Secure continued collection services after term expiration Secure discretion and resources in the event of future EBS sale Secure fully updated and modernized form of agreement Avoid increases in solid waste rates
All of the City’s objectives were met during the negotiation process
6 Agenda Packet Page 350 of 360
New SB 1383 Compliance Services
Universal Organic Waste Collection Service
New Carts and Labels for Garbage (Gray) and
Recycling (Blue)
EBS will cover all costs for recycling cart purchase, except some miscellaneous costs (e.g., taxes and freight) Compliance Reviews
Contamination Audits / Route Reviews
Education and Outreach / Compliance Waivers
Edible Food Recovery Support
Compost Procurement
Record Keeping and Reporting
7 Provide Organics
Collection to All
Monitor Compliance
and Conduct
Enforcement
Secure Access to Edible
and Recycling Food
Recovery Capacity
Procure
Recyclable and
Recovered
Organic Products
Establish
Edible Food
Recovery
Program
Conduct
Education &
Outreach to
Community
Agenda Packet Page 351 of 360
New Service Enhancements
Expanded Bulky / Large Item Collections (including multi-family dwellings) Expanded E-waste / U-waste Collections
Fire Prevention Clean-ups
Illegal Dumping Clean-ups
Back-up Recycling Collection Service
Customer Service Enhancements
Enhanced Reporting
Immediate Transition to Renewable Diesel
8 Agenda Packet Page 352 of 360
Electric or Zero Emission Collection Vehicles
EBS is required to purchase electric or zero emission collection vehicles at no change in its compensation when technologically and economically feasible Technologic Feasibility
Electric vehicles in use or on order in other communities are test vehicles It is not yet technologically feasible for regular route operations in El Cerrito Most likely use will be for commercial routes, possibly requiring two trucks per route Hilly residential routes are unlikely candidates for electric vehicles City and EBS will meet annually to review technologic feasibility 9 Agenda Packet Page 353 of 360
Electric or Zero Emission Collection Vehicles
Economic Feasibility
A primary objective of proposed Agreement was to avoid increasing EBS’s compensation and customer rates
Proposed Agreement requires EBS to purchase electric or zero emission vehicles instead of conventional diesel if it can do so while achieving target profitability EBS will receive no change in compensation for the difference between the cost of electric/zero emission vehicles and conventional diesel If City desires implementation of electric or zero emission vehicles above what can be accomplished without increase in compensation or rates, City may direct EBS to do so given approval of an associated change in compensation
Change in EBS compensation will likely be needed for fueling / charging station 10 Agenda Packet Page 354 of 360
No Change in Compensation
There will be no change in EBS’s 2022 compensation from approval of new agreement and no change to the compensation approach / structure Annual index-based compensation adjustments will continue as per current agreement, with the next being January 1, 2023
Index-based adjustments have ranged from 1.5% to 3.6% since 2014, for an average of 2.74% per year
City or EBS may call for a detailed review of compensation as per current Agreement
The bottom line is that customer rates will not change as a result of approving new agreement
11 Agenda Packet Page 355 of 360
Form of Agreement
New agreement is fully updated and modernized to meet current solid waste, regulatory and legal standards and expectations
New agreement includes detailed performance standards, administrative penalties, reporting requirements, indemnification and insurance provisions New agreement provides for City discretion in the event of a future assignment to another contractor, with resources to review request for assignment If EBS is ever sold the terms and conditions of the new agreement will help ensure that the City continues to receive quality service in the future 12 Agenda Packet Page 356 of 360
Term of Agreement
Initial 10-year term through May 31, 2032
Automatic annual one-year extensions thereafter
Key to securing new services without changing EBS’s compensation Common approach for agreements with small family-held solid waste operators Provides rate stability to ratepayers, financial security and ability to EBS Provides City and EBS with flexibility to continue long-term contracting relationship without the need to negotiate periodic amendments
Automatic annual extensions will cease
If City gives written notice
If EBS sells the company
After 15 annual renewals have occurred
13 Agenda Packet Page 357 of 360
Alternatives to Proposed Agreement
The City needs to arrange for programs and services to comply with SB 1383 The City needs to arrange for continued garbage and organic waste collection services starting January 1, 2026
If the Council does not authorize the proposed Agreement Providing required SB 1383 programs and services will be more costly City will need to undertake competitive RFP process
Both efforts will require commitment of staff and consultant resources, and may result in increased expenses and increases in solid waste rates Outcomes of a competitive RFP process cannot be guaranteed Transitioning to a new services provider can be difficult and costly 14 Agenda Packet Page 358 of 360
Conclusion and
Recommended
Action
EBS has a long history of customer satisfaction and
performance working as a partner with the City
The proposed agreement will secure many valuable services SB 1383 compliant programs and services
New collection programs for bulky waste, illegal
dumping, and more
Enhanced customer service
Renewable diesel
Future electric / zero emission vehicles
There will be no change in solid waste rates resulting from proposed agreement
Staff recommends adoption of a resolution
authorizing City Manager to execute the proposed
Agreement with EBS effective June 1, 2022
15 Agenda Packet Page 359 of 360
Questions and Comments
16 Agenda Packet Page 360 of 360