Utilities Rate Advisory Commission Meeting – October 8, 2014

The Utilities Rate Advisory Commission (URAC) met on Wednesday, October 8, 2014, at 5:30 p.m. in the Council Chambers at 915 I Street. The meeting included approval of prior minutes, a detailed presentation on the Recycling and Solid Waste Division’s operations, financials, and efficiency improvements, followed by discussion of commission composition and administrative matters. The meeting adjourned at 7:14 p.m.

Consent Calendar

• Item 1 – Approval of Minutes for July 23, 2014: The commission unanimously approved the minutes on a motion by Scott Brown, seconded by Timothy Horner. Voting yes: Douglas Brown, Steven Archibald, Timothy Horner, Scott Brown. Commissioner Kevin Schubert abstained. Members absent: Christopher Butcher and Carolyn Veal-Hunter (who arrived at 5:40 p.m.).

Discussion Items

• Item 2 – Department of General Services Recycling and Solid Waste Organizational Overview, 5‑Year Fund Summary, and Operational Efficiency Review (Estimated time: 30 minutes): Steve Harriman, Integrated Waste General Manager, presented an overview of the division’s structure, five‑year financial trends, and efficiency measures since the last rate adjustment in FY2010. Key highlights:
  • Waste flow changes: Garbage tonnage dropped from 146,000 tons in FY2010 to 119,000 in FY2014; recycling tons declined from 40,000 to 30,000; yard waste from 81,000 to 61,000 tons.
  • Total revenue stayed around $60 million; operational expenses fell from $56 million (FY2010) to $47 million (FY2014) due to exiting commercial business and breaking out multi‑year appropriations.
  • Major program changes effective July 2013: exit from commercial and city‑facility collection, switch to every‑other‑week recycling, mandatory containerized yard waste, and a seasonal appointment‑based household junk program.
  • Prop 218 compliance improvements: eliminated ratepayer subsidies for city facilities and illegal dumping; now receiving general fund reimbursement.
  • Vehicle replacement program established (7‑year cycle) with annual $5.5 million set‑aside; new LNG/CNG trucks reduced maintenance and fuel costs and improved morale.
  • Contamination in curbside recycling dropped 38% from 2011 (above 30%) to below 20% in 2014 due to public education.
  • Discretionary overtime reduced 44% year‑over‑year (FY2013 to FY2014).
  • Missed collections in September 2014 were 838 out of ~1.5 million cans (0.06% rate).
  • Illegal dumping: ~8,000 reported incidents per year; household junk program appointments increasing.
  • Future rate process: rate adjustment workshops planned for November and December 2014; Prop 218 mailer in January 2015; public hearing in February; City Council action in March 2015.
• Commissioners’ Questions and Discussion:
  • Commissioner Archibald asked about tipping fee increases (new disposal agreement in 2012 brought waste to Kiefer Landfill) and net savings from vehicle replacement (maintenance savings offset purchase costs).
  • Commissioner Veal‑Hunter requested breakdown of discretionary vs. non‑discretionary overtime (ratio ~75% discretionary, 25% non‑discretionary).
  • Commissioner Horner noted apparent annual surpluses; staff explained that multi‑year appropriations and fund balance will be fully addressed in upcoming rate discussions.
  • Commissioner Douglas Brown inquired about impact of moving Solid Waste from Utilities to General Services (improved coordination with fleet and 311).
  • Chair Douglas Brown clarified that service‑level changes (e.g., weekly recycling) are not part of this rate proposal; staff confirmed council has not directed changes.
  • The city attorney advised that the commission’s statutory role is limited to rate recommendations, not service levels.

Key Outcomes

• Consent Calendar Approved: Minutes of July 23, 2014, adopted with one abstention.
• Presentation Received and Filed: The commission accepted the report as information.
• Commissioner Requests:
  • Timothy Horner asked staff to provide the budget section missing from the previous URAC binder.
  • Scott Brown requested a comparison of the Department of Utilities’ rate analysis timeline with that of Solid Waste.
• Commission Composition Issue: Discussion revealed that the URAC code requires three business‑category seats (industrial, commercial, multifamily) that have not been filled in recent years. The clerk’s office paused applications for three open seats to seek compliant applicants; deadline October 17, 2014. The commission expressed urgency and asked staff to convey the potential impact on rate‑setting timelines to the City Council. The issue will be placed on the October 22, 2014, URAC agenda for possible formal action.
• Adjournment: The meeting ended at 7:14 p.m.

Public Comments – Matters Not on the Agenda

None.