Utilities Rate Advisory Commission Meeting - March 26, 2014

The Utilities Rate Advisory Commission (URAC) met on Wednesday, March 26, 2014, at 5:30 p.m. at 915 I Street, 1st Floor, NCH. Four of seven commissioners were present (Kevin Schubert, Douglas Brown, Steven Archibald, Scott Brown); three were absent (Christopher Butcher, Timothy Horner, Carolyn Veal-Hunter). The meeting opened at 5:34 p.m. The commission approved the January 22, 2014 minutes and received a detailed presentation on the Solid Waste Fund and residential program changes.

Consent Calendar

• Minutes of January 22, 2014: Approved by a motion (Steven Archibald/Kevin Schubert). Vote: 3 ayes (Schubert, Archibald, Brown), 0 noes, 1 abstention (Scott Brown). Absent commissioners not voting.

Public Comments & Testimony

• No public comments were made on non-agenda items or agenda items.

Discussion Items

• Solid Waste Fund Overview and Residential Program (Item 2): Staff from the Department of General Services presented an update. Key points:
  • Budget: FY2013‑14 revenue budget of $59 million, operating budget of $52 million, and multi‑year project appropriation of $8.5 million. The largest cost components were disposal (51%), vehicle repair/maintenance, and fuel.
  • Program changes implemented July 2013: Weekly containerized yard waste for all residential customers; loose‑in‑street leaf pickup November–January; household junk pickup program (February–October) with two appointments per household in 2014; dump coupons (1,707 issued July–December 2013); and every‑other‑week recycling with expanded education.
  • Recycling tonnage: From July 2013 through January 2014, recycling tonnage fell 16% compared to the same period the prior year. Garbage tonnage also decreased slightly (<1%). Historical data showed that switching from bi‑weekly to weekly recycling in 2007 increased tonnage by only 9% on average, not the projected 30‑40%.
  • Contamination: Reduced from 31% to 22‑23% due to better education and measurement changes.
  • Options for recycling frequency:
    • Return to weekly: Estimated $1.50/month per customer increase; would require 9 additional trucks, 9 drivers, and 1 mechanic (cost ~$2 million). Avoided disposal and revenue from additional recyclables estimated at $500,000, resulting in a negative net return.
    • Remain bi‑weekly: A second recycling can is available for $1.76/month; only 900 of 124,000 customers have subscribed. Council requested a public survey to gauge preferences.
  • Rate adjustment timeline: Staff will return to URAC in spring/summer 2014 with rate scenarios for a July 1, 2015 rate change. A formal Proposition 218 process will follow council direction.
  • Commissioner comments:
    • Steven Archibald noted that the commission originally voted 1‑5 against the bi‑weekly change two years ago. He reported neighbors stockpiling, burning, or putting recyclables in the garbage. He encouraged the commission to reaffirm its earlier position.
    • Kevin Schubert asked about illegal dumping trends (down ~10%) and requested future per‑household tonnage statistics.
    • Douglas Brown noted the service level changes (loose‑in‑street, junk pickup) were designed to align revenue and costs; the upcoming rate adjustment will continue that alignment. He expressed willingness to pay $1.50/month for weekly recycling.
    • It was clarified that the commission’s role is recommending rates, not setting service levels; service level authority rests with the City Council.

Key Outcomes

• Consent calendar approved – minutes of January 22, 2014 accepted.
• Solid Waste Fund Overview received and filed – taken as informational.
• Survey on recycling frequency – staff will conduct a formal poll per council direction and report back.
• Rate scenario work to begin – URAC will review rate options for solid waste in upcoming meetings.
• Chair transition – Chair Douglas Brown announced his term ends in August; a new chair election will be scheduled, possibly by the next meeting.
• Meeting schedule – Due to upcoming rate processes, meetings will likely be held monthly (rather than every other month).