CC MIN 06072022 - Laserfiche WebLink

In response to Mayor Brown, Mr. Galvan stated he sees no problems with the City's recommendations in Item 19. Art Tenbrink provided welcomed City Manager Beaudin. He requested the City Council and staff work toward banning assault rifles and other such weapons of war from the City. He thanked the City for declaring the first Friday of June as National Gun Violence Awareness Day. PUBLIC HEARINGS AND OTHER MATTERS If necessary to ensure completion of the following items, the Mayor may alter time limits. 19. Continued from May 17, 2022 — Provide direction for allocation of funds in the special revenue fund related to the Pleasanton Garbage Service Rate Reserve (Fund 171 PGS Reserve Fund). Assistant to the City Manager Hopkins reported staff was directed by City Council in February 2020 to return to receive direction regarding the use of Special Revenue Fund 171. She reported meeting in May with the City Council's Waste and Recycling Subcommittee which recommended using the Special Fund for SB 1383 implementation costs, road maintenance, smoothing of garbage rates, and landfill- related costs. Assistant to the City Manager Hopkins reported staff still does not know the full costs of implementing SB 1383, but the fund will help supplement the implementation should it exceed the budget estimates, primarily for one-time costs not needing to be passed along to PGS ratepayers. She reported after a nexus study is performed on road impacts from the service, the City Council could set a fee into the Franchise Agreement collected through annual rates and used towards road maintenance. She advised the City Council would have to approve the study at an estimated cost of $20,000. She reported the subcommittee was interested in having the ability to smooth garbage rates but noted it would only be for one year. She noted there are annual landfill maintenance and operational costs built into the PGS rate structure, but this fund usage would allow for one-time costs for new studies. In response to Councilmember Narum, Assistant to the City Manager Hopkins confirmed Council can provide direction on how money leaving the fund could be divided up among the four proposed categories. Staff does not presently know what percentages to recommend and having it be open allows for more flexibility. The City Council would have to agree to any expenditures. In response to Councilmember Narum, Assistant to the City Manager Hopkins clarified the $563,000 budgeted for the Fiscal Year 2022-23 is a procurement requirement for compost and mulch. She clarified no money from the fund goes to PGS and that the money budgeted is only for City-related costs. She advised there are also one-time costs being incurred by PGS for SB 1383 compliance and implementation and the Council can consider covering those costs from this fund so PGS's costs are not passed on to ratepayers. The options are limited to waste and recycling options to specifically benefit ratepayers since they are the source of the Fund. In response to Councilmember Testa, Assistant to the City Manager Hopkins confirmed the money in the General Fund was an agreement made in February 2020 by the City Manager and City Council at the end of the previous Franchise Agreement. She confirmed the only financial request in the recommendation is $20,000 to perform a road study if so directed. In response to Councilmember Testa, City Manager Beaudin clarified in all of the scenarios included in the staff report the money will be spent to the benefit of the ratepayers regardless of which bucket the funding ends up in. He advised the City Council could always set the impact rate lower than what the nexus study returns. City Council Minutes Page 4 of 11 June 7, 2022