SET RESTAME STRET
BRAD HALPERN RAY PEARL NED E DAVIS KELLY HONIG SUSAN MOSWEENEY Mayor Mayor Pro Tem Councilmember Councilmember Councilmember
MINUTES
Study Session Meeting of the City Council
July 13, 2022
CALL TO ORDER:
This Study Session Meeting of the Westlake Village City Council was called to order by Mayor Halpern on Wednesday, June 22, 2022, at 4:32 p.m., at 31200 Oak Crest Drive, Westlake Village.
PLEDGE OF ALLEGIANCE:
Mayor Halpern led the Pledge of Allegiance.
ROLL CALL:
PRESENT: Councilmembers McSweeney, Honig, Davis, Mayor Pro Tem Pearl, and Mayor Halpern
ABSENT: None
Also Present: City Manager de Geus, City Attorney Boga, Deputy City Manager Eskandar, Planning Director Forbes and City Clerk Mann.
APPROVAL OF AGENDA:
Councilmember McSweeney moved to approve the Agenda as presented.
Councilmember Honig seconded the motion.
YES: Councilmembers McSweeney, Honig, Davis, Mayor Pro Tem Pearl, and Mayor Halpern
NO: None
ABSENT: None
ABSTAIN: None
Mayor Halpern declared the motion passed 5-0.
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City of Westlake Village July 13, 2022 2
PUBLIC COMMENTS: None
STUDY SESSION:
MANAGEMENTE COLLECTION SERVICES AGREEMENT WITH WASTE
City Manager de Geus introduced the item stating favorable terms for our residents have been negotiated by staff with assistance from the City's consultant, R3 Consulting Group, Inc., and Doug Corcoran from Waste Management.
Planning Director Forbes reported our current agreement with Waste Management was renewed in 2015 and will expire August 22, 2022. Waste Management submitted a request in July 2021 to extend the agreement for 10 years with lower rates. City staff requested Waste Management submit a comprehensive proposal including compliance with Senate Bill (SB) 1383, organic waste recycling. A comprehensive proposal was received in October 2021 from Waste Management. and R3 Consulting Group reviewed the proposal and determined that negotiating a new agreement with Waste Management was the best course of action rather than a competitive procurement process.
Mr. Forbes reviewed the terms of the proposed agreement including a 10-year term with two optional 5-year extensions, adding exclusive commercial collection service, and various provisions for compliance with SB 1383. Under the proposed agreement, residential rates will be reduced to $29.35 for a 3-cart service and frozen for 3 years. Starting in year 4, the annual rate increase will be capped at 4% and tied to CPI Garbage and Trash with an excess increase that can be carried over up to 2 years. Commercial rates will vary based on the bin size, number of bins, and frequency of service. The bundled rates will include a trash bin, recyclables bin of equal size, and a 64-gallon organic waste cart. Commercial rate increases will be capped at 5% annually and tied to CPI Garbage and Trash with an excess increase that can be carried over up to 2 years.
The City will receive revenue associated with the franchise agreement:
• Procurement Reimbursement Fee
• One-time payment of $25,000
• Annual Reporting Program Fee
• $30,000
• Will increase over time by same percentage as rates
• Solid Waste User Fee
• $1 per account per month
• Estimated annual revenue $39,000
• Franchise Fee
10% of gross revenue
• Estimated annual revenue $120,000
• Will increase over time as rates increase
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City of Westlake Village July 13. 2022 3
STUDY SESSION (continued):
Current services that will continue include a 10% senior discount, free home compost bins, backyard valet service (free to disabled household, monthly fee for others), free bulky item pickup twice a year with up to 6 items in total, waste service and portable toilets for City events and monthly household hazardous waste collection.
New services will include a 10% low-income discount, new waste carts for all residential customers, new kitchen food waste pails on request, annual curbside holiday tree collection, three free landfill days, two mulch and compost giveaways and two free paper shredding events annually.
As required by SB 1383, neighborhoods that currently have only two waste carts for trash and recyclables will receive a third cart for organic waste. In cases where residents may not have adequate space for a third cart, Waste Management will work with each HOA to determine alternatives which may include shared carts or bins.
In some neighborhoods where the HOA pays for collection service on behalf of the residents, the HOA negotiated special rates in the past, which has resulted in those neighborhoods having lower rates than the franchise rate. Under the new agreement, all residential customers will pay the same rate, so those neighborhoods will experience a rate increase. Those rate increases will be phased in three steps over two years, with the highest increase around $5.00 a month. Staff has been communicating and meeting with the affected HOA Boards.
Carrie Baxter, R3 Consulting Group, reported that the commercial service will include a new exclusivity clause that will be phased in over 5-years. A new bundled service (trash, recycling, and organics) will be provided. Waste Management will work with each business to "right-size" their service and ensure that their service levels match their needs.
Mr. Forbes concluded his presentation with the next steps that will be required of City Council.
City Councilmembers asked a variety of questions about different aspects of the proposed agreement including discounts, additional services, and customer service. Councilmembers asked questions and expressed concerns about exclusive commercial collection service that would be provided under the proposed agreement. Concerns included whether the rates would be competitive, how many businesses would experience a rate increase, and how commercial exclusivity affects residential rates.
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City of Westlake Village July 13, 2022 4
STUDY SESSION (continued):
Councilmembers also asked questions and expressed concerns about the neighborhoods where rates would increase due to the special lower rates previously negotiated by the HOAs. Councilmembers were especially concerned about outreach conducted to these neighborhoods and whether the residents were adequately informed that their rates would be increasing.
Doug Corcoran, Waste Management Director of Public Sector Solutions, addressed City Council questions related to commercial exclusivity and customer service.
City Council requested that staff advise all residents of the agreement and changes. Deputy City Manager Eskandar indicated a direct mailer would be sent to each household.
City Council requested that Waste Management provide and review the financial data related to commercial exclusivity and why the residential rates would be higher if commercial exclusivity is not part of this agreement.
City Council requested an additional study session on July 27, 2022 at 4:30 with a communication sent to each household about the Waste Management agreement prior to the study session.
ADJOURNMENT:
Meeting adjourned at 6:15 p.m. to the Regular Session scheduled for 6:30 p.m.
Bad tal
Brad Halpern, Mayor
Attest:
Antoirette hers
Antoinette Mann, City Clerk