CC MIN 06072022 - Laserfiche WebLink

In response to Councilmember Arkin, Assistant to the City Manager Hopkins confirmed staff would have to check if all $2 million allocated to the General Fund went to roads. She confirmed there was no specific direction for the money but there is an assumption it was directed towards road work. In response to Councilmember Arkin, City Manager Beaudin advised impact on local streets was discussed with PGS for the Franchise Agreement. He reported the City would hire a consultant to help assess the impacts while meeting Assembly Bill 1600 requirements for a Nexus study. In response to Councilmember Arkin, Assistant to the City Manager Hopkins advised she does not have the exact calculations for how much money would have to be drawn from the Fund to assure there would be no ratepayer increases in FY 22-23. She reported there will be a discussion of next year's rates at the next meeting and rate smoothing scenarios will be provided then. In response to Mayor Brown, Assistant to the City Manager Hopkins confirmed three large garbage trucks are traveling every street every week; one each for landfill, recycling, and garbage. In response to Mayor Brown, Assistant to the City Manager Hopkins clarified the fund can smooth over FY 22-23 but ratepayers will eventually have to pay the increase in future years. She advised this upcoming year is an index-based increase residents are contractually obligated to pay. She noted there are also small specific SB 1383-related costs to pay this year and included in the Franchise Agreement. In response to Mayor Brown, Assistant to the City Manager Hopkins confirmed the City's Action Plan has up to three full-time equivalent positions to help with SB 1383 compliance. She advised a consultant has recently been hired to help with implementation. She reported it is a $100,000 contract with $40,000 set aside for contract employees of the consulting firm to help with the initial program. She advised that future staffing needs have not yet been determined. In response to Councilmember Narum, Assistant to the City Manager Hopkins confirmed SB 1383 staff expenses are allowable to be passed onto ratepayers but advised it is a City Council decision whether or not it should be done. In response to Councilmember Testa, Assistant to the City Manager Hopkins explained that reverse vending is not included in the Franchise Agreement and advised it is a state-run program. She reported there is not a nexus because it is ratepayer money. She clarified the buyback center is only mentioned in the agreement in the context that staff would receive a courtesy notice if PGS closes it. She advised PGS is not obligated to offer a buyback center because the State runs the program. In response to Mayor Brown, City Manager Beaudin clarified the City's road budget is fixed but creating a new revenue source, such as a potential impact fee, puts more money into the overall pool for road improvements citywide. Mayor Brown opened the public hearing. There being no speakers, the public hearing was closed. Councilmember Narum advised the money should be used for one-time costs. She explained that smoothing rates will mean customers will eventually have to pay an even larger increase. She advised it has been a large concern and discussion point for East Bay Community Energy (EBCE) where customers recently saw a large increase after a rate smoothing measure expired. She agreed with the four categories and added rate smoothing may make more sense in year seven. In response to Mayor Brown, Councilmember Narum agreed to a $20,000 Nexus study to help figure out road impacts stemming from SB 1383. Councilmember Narum moved to adopt the allocation plan as recommended, including up to $25,000 for a Nexus study on road maintenance with a general direction to use the funds to offset one-time City Council Minutes Page 5 of 11 June 7, 2022