TO: Board of Directors
FROM: Steven Lederer - Manager, UVWMA
REPORT BY: Steven Lederer - Manager, UVWMA
SUBJECT: Franchises' Status
RECOMMENDATION
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FRANCHISES' STATUS
DISCUSSION AND POSSIBLE ACTION: Agency Manager and Company to provide an update concerning the implementation of franchises' activities, including the upcoming rate setting process.
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BACKGROUND
Standing agenda items include:
1. Communications with customers/upcoming events.
2. Quarterly report is attached (if a new one has been received since the last meeting).
3. Other happenings of interest to the Board.
We are approaching the end of our 3 year rate cycle, and a new baseline rate will need to be established by June, 2027. Before that process commences, we would like Board input, but not formal action, on various proposals brought forth by the company and staff, and any proposals the Board would like the Company to price. This input will allow the company and staff to focus on those items the Board has interest in, and not waste time on those that they don’t. The initial baseline rate will be set for year one, with the following two years simply adjusting at CPI.
Here are several of the larger projects and cost outliers currently being considered. These items represent significant investments in safety, operations, service reliability, and regulatory compliance.
Some of the major items currently being factored into our projections include:
1. Replacement collection vehicles, including evaluation of EV versus diesel truck purchases.
2. Addition of two EV supervisor vehicles.
3. Request for three pup trucks (small rear-load collection vehicles) to improve operational flexibility and service coverage.
4. Installation of a fire sprinkler system in the shop area.
5. Asphalt improvements throughout the site.
6. Truck scale system technology that provides real-time vehicle weight information.
7. Wage increases across employee groups to remain competitive and support retention.
8. Addition of an Outreach/Program Manager position to support increasing program and compliance requirements.
9. Addition of staffing dedicated to truck washing and cart/bin washing operations.
Staff also requested inclusion of the following programs:
1. Unlimited bulky item pickups for residents.
2. Three green compost carts with commercial bin service (an increase from the current one green compost cart and three blue with commercial bin service).
3. Temporary/cardboard waste sorting stations for events at no cost to commercial and residential customers.
4. Free pallet pick up for commercial customers.
5. Box of compost bags at no cost, once per year, for residential customers.
6. Tire drop off coupon for Clover Flat Landfill for residential customers once per year.
7. 32-gal recycle carts (32-gal compost carts currently available, no change residential rate for smaller carts).
8. Professional graphic designer for some outreach projects like labels, brochures and handouts that can’t be easily handled in-house.
Based on our current forecasting and including some of the JPA-requested programs or service enhancements, we are estimating a rate increase in the range of approximately 2.5% to 3.0% if we move forward with diesel truck purchases rather than EV collection vehicles. Should EV collection trucks be required, the projected rate impact would be much higher due to the increased capital costs associated with those vehicles and related infrastructure.
We will continue refining our projections and will provide additional detail as budget development progresses. One key factor to keep in mind is that diesel fuel price could significantly affect the potential rate change.
Board input, no Board action is anticipated.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.