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HomeMy WebLinkAboutItem HAGENDA REPORT DATE: September 24, 2001 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: June Yotsuya, Assistant to City Manager SUBJECT: PUBLIC HEARING FOR CONSIDERATION OF TREE TRIMMING AND STREET SWEEPING FEE INCREASES SUMMARY OF REQUEST: The City Council shall hold a public hearing to consider the operations of the tree trimming and street sweeping programs, as well as the merits of increasing the community service fees to cover program costs. Staff recommends that the City Council consider and take action on the following: 1. Tree Trimming — Determine the level of service to be included in the tree trimming program (i.e., including tree maintenance) and whether or not the City will continue to subsidize these services with General Fund monies or consider a fee increase to cover program costs. 2. Street Sweeping — Determine the level of service to be included in the street sweeping program, determine the delivery method for these services, and make a determination on funding resources, including the consideration to increase the community service fee. 3. Community Service Fees — If the City Council approves the proposed increase in fees, the City Council shall adopt the applicable resolution(s) approving the proposed fee , incmase(s) and proceed to consider the election process as required under Proposition 218. BACKGROUND: Historical Perspective. In 1988, the City Council adopted an ordinance that established the City Council's authority to impose community services fees for public services provided to residents and property owners by the City. That same year, the City Council adopted a resolution that established the current fee rates for tree trimming and street sweeping services. The intent of the original fees was that the total fees collected would cover the total costs for services provided. The City has not raised fees since its inception. In the original resolution; ate City did not consider including a Consumer Price Index (CPI) factor to the fees to accommodate cost of living adjustments September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 2 from year to year. After thirteen years, the annual revenue collected from the community service fees does not cover the annual costs for tree trimming and street sweeping. Currently, the City subsidizes these services by approximately $69,000. At the public hearing scheduled for the September 24, 2001 Council meeting, the City Council will consider the operation of the tree trimming and street sweeping programs, as well as the merits for increasing the community service fees to cover program costs. Proposition 218. In 1996, the California voters approved Proposition 218, a state constitutional amendment known as the "Right to Vote on Taxes Act." Proposition 218 established procedural rules for the adoption, extension and increase of certain taxes, assessments and property- related fees. The City Council had authority to impose community services fees by resolution at the time the original fees for tree trimming and street sweeping were established. However, with the passage of Proposition 218, the City Attorney's Office verifies that the City shall submit any proposed increases in such fees to a vote of the subject property owners or the electorate residing in the affected areas after holding a public hearing on the matter. At the public hearing, the City must hear and consider all protests against the proposed fee increase. The City may not take any further action on the proposed community service fee increases if, a majority of affected property owners submit written protests in opposition to such an action. In the absence of a majority protest, the City Council may make its determination on the proposed fee increases upon conclusion of the public hearing. (A majority protest on increasing community service fees does not preclude the City Council making a determination on the operations of the City's tree trimming and street sweeping programs and its funding sources.) Proposition 218 requires a simple majority approval if the City submits the proposed fee increases to a vote of the affected property owners. The California Elections Code authorizes cities to conduct any election under Proposition 218 wholly by mail. A vote of the electorate (such a vote will include non- property owners) will require a two - thirds vote to enact the increase. A mailed ballot to affected property owners is a conservative approach that directly involves those who are responsible for paying the fees. Tree Trimming Proeram. The City of Seal Beach maintains approximately 5,000 trees on public property with plans to install more trees over the next few years. The City is working creatively to enhance its Urban Forest with an aggressive planting program and through a partnership with the Trees for Seal Beach non -profit organization dedicated to promoting the same cause. The Urban Forest in Seal Beach is on a two to three year grid trimming cycle maintaining approximately 1,200 trees annually. An exception to the program is the annual trimming of palm trees in Old Town and trees on Main Street. Advantages to an appropriate trim cycle are apparent following any of the City's major storms. Diligence in tree care helps limit damage and claim exposure for the City. How muck does the City currently spend on tree trimming? The City currently allocates $55,000 for tree trimming. The community service fee for tree trimming provides only $36,000, creating an annual general fund impact of $19,000. September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 3 What does tree maintenance in the City of Seal Beach entail? Tree maintenance does not end with trimming. Maintenance services include soil replacement, removal, replanting and root pruning of trees, as well as providing root barriers when appropriate. The City also performs sidewalk grinding and repairs or replaces curb and gutter damaged by the city's trees, increasing the cost of preserving trees. 7s there a need for an increase in service beyond tree trimming? Staff estimates, based on existing tree inventory, that the city has approximately 300 Ficus, Black Locust and Brazilian Peppers trees that do or will require sidewalk and or curb and gutter removal and replacement. The City currently has a backlog of sidewalk repair attributed to its Urban Forest. How much does tree maintenance cost? The following is a table of the services and costs included in tree maintenance. Public Improvement Costs to Fix Damage Caused by City Trees Activity Avg uanti /location Mice. Unit Price Amount Permanent Repairs Remove and Replace Damaged Curb and Gutter 15 LF $35/LF $350 Remove and Replace Sidewalk (Avg 5ft x IN el ) 50 SF $8 /SF $400 Interim Repairs Grind Raised Sidewalk 1 Location $50/Loc S50 Asphalt Patch 1 Location $25/1.oc S25 Tree Removals Remove Tree (Assume 13 inch diameter ) 13 inch $13 /in 5169 Tree Plantings Plant 15 gallon Tree 1 each $100 $100 Plant 24 gallon Tree t each 1 $200 1 $200 Soil Replacermun I I location 1 $24 1 yd soil 1 $24 labor Root Pruning 1 location 1 $95 1 $95 How does the City currently provide street tree trimming services? The City contracts with West Coast Arborist to provide grid -cycle tree trimming. The current budgeted allocation is for tree trimming only. City crews perform sidewalk and gutter repair. 14WIM(iMI7 £ What is City Staff doing t0maxilvdino the current cost of Street Tree Trimming? The City initiated a bid process to get a competitive price for tree trimming. The City will select a contractor from the three bids received following a decision on the fee increase. The total amount of the contract will depend on the amount of available funding for tree trimming and maintenance. The bid proposals include a Consumer Price Index (CPI) for services under the new contract. The new contract will be for one year with two optional one -year extensions contingent upon satisfactory performance of the contractor. The bids range from $39,400 to $48,400. At the budget session, what were the options reviewed by City Council? City Council considered three scenarios that included consideration of combining costs for service for tree maintenance with street tree trimming. The City Council selected Option 3 as the optimal amount of fee increase necessary for a sufficient street tree trimming and maintenance program. September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 4 Decision Matrix for Annual Costs Option 1 Increase fees to cover direct cost of $55,000 (Increase single - family resident trimming trees fee from $.50 to $.92 per month) Option 2 Include limited tree maintenance $63.000 (Increase single- family resident (grinding or patching, with an fee from $.50 to $1.05 per month) anticipated life span of 3 years), with recovering direct cost of trimming Option 3 Include limited tree maintenance $125,400 (Increase single - family (sidewalk and gutter removal and resident fee from $.50 to $2.08 per replacement) with recovery of direct month) costs of trimming What will be the impact to City services if the fee increase does not pass? If the fee increase does not pass, City Council will have several options: 1) decrease service by altering the current grid trimming cycle. This would increase the time between trimmings; 2) continue to subsidize collected funds for Street Tree Maintenance so that frequency of service is not affected; 3) repair only those sidewalks that pose a liability; and 4) direct staff to return with a policy requesting City Council eliminate further tree planting to reduce costs. (The City currently subsidizes collected fees with $19,000 for tree trimming services only. This subsidy does not include in -house costs for street tree maintenance.) What will occur if the fee increase passes? If the fee increase meets voter approval, Council could then award an encompassing Street Tree Maintenance contract to include tree trimming, sidewalk and gutter removal and replacement. The financial support would enable the City to answer requests for maintenance in a timelier manner, deal with the current backlog of sidewalk repair, meet future demands for service, reduce exposure to liability, and better preserve our urban forest. Street Sweeping Program. During the budget hearings, City Council directed staff to investigate reducing the revenue deficit through contract services and consider expanding its current level of service to weekly street sweeping to address water quality concerns. How often does the City sweep streets? The City sweeps most streets twice a month, with arterials swept variably but on an average of four times a month. The City sweeps Main Street and the Beach Parking Lots four times per week, with alleys swept on an as needed basis. Currently, the Public Works Department maintains 43 miles of street (86 curb miles) within its network. Accordingly, every year, the department sweeps 2,800 curb miles. To do everything weekly would require sweeping 5,875 curb miles. Leisure World also contracts with the City at an hourly charge, for five hours a month, to sweep within its community. Public Works also sweeps Pacific Coast Highway and invoices Caltrans back per an existing maintenance agreement. How much revenue does the City collect for street sweeping? The City currently collects $37,500 through the street sweeping fee. In 1988, it was the intention of the previous Council to have user fees pay for the services provided for street sweeping. The enacting resolution established the fee, primarily, at an assessment on an average of fifty cents per water meter with some language for exceptions. September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 5 Regular Fees Type Sweeping Fee per month Multi- PwrelPrivate Communities $ 0.30 Non-Residential $ 0.50 Sin a Family Residential $ 0.50 The exceptions, including commercial, manufacturing, vacant properties, etc., were charged one cent per lineal foot served by a city street sweeper or the minimum assessment of fifty cents per water meter, whichever was greater. During its review, the Finance Department found that some properties were not being charged or incorrectly charged due to an inadvertent error when the system was originally set up in 1991 and is currently working to correct the situation. According to an April 5, 1988 staff report, Leisure World, with approximately 6400 dwelling units and 6500 feet of City streets served by the sweeper, would pay $65 per month. Leisure World pays the City on an hourly contract basis to sweep within its community. What about revenues from tickets issued during street sweeping? The purpose of ticketing during street sweeping operations is not to collect revenue but rather to improve the efficiency of the street sweeping operation and its objectives of cleaner streets. One to two parking control vehicles accompany the street sweeper during its normal operations. The amount of the ticket is $25. The operation does not split out or track the street sweeping fees separately but include them together with all parking tickets issued in the City. It is not the intent to have the tickets be a revenue generation source. If the City were to move forward with weekly sweeping, the City will consider implementing a 30 -day grace period on street sweeping parking enforcement. How much does in -house street sweeping cast for its current level of service? The City spends approximately $87,000 using its own in -house forces. The Engineering Division performed a comprehensive analysis on the department's street sweeping operation. In summary, the costs were broken down into the following categories: labor, overhead, capital, equipment, and miscellaneous adjustments. Labor included payroll costs, shift differential, fringe benefits, uniform and training costs. Overhead included supervision and administration costs. Capital included the cost to purchase a new sweeper, interest payments, and return on salvage value based upon a seven -year life. Equipment included tires, fuel, oil and grease, brooms, in house parts and contract services. Miscellaneous adjustments included the credits back from Leisure World and Caltrans. LABOR COSTS $53,297.50 OVERHEAD COSTS 1,000.00 CAPITAL COSTS 24,528.57 EQUIPMENT COSTS 18,842.25 ENVIRONMENTAL REGULATIONS MISCELLANEOUS ADJUSTMENTS - 10,560.00 Total City Costs $87,098.02 The Public Works Department has two street sweepers and one street sweeper operator. The primary street sweeper (75 %) is a 1993 broom sweeper with 47,750 miles and 5,300 operating hours. The September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 6 secondary sweeper (25 %) is a 1986 Tymco vacuum sweeper with 40,500 and 5,970 operating hours that can remove debris and standing water. The department uses this piece of equipment only for specific "hot spot' areas and in College Park East to vacuum standing water and debris. Both sweepers will soon need replacement next fiscal year. The average life of a sweeper is seven to ten years. New Air Quality Management District regulations me in effect that will require agencies to purchase PM -10 efficient sweepers. These are vacuum sweepers that prevent the venting of particulate matter of a specific size. The purchase of a PM -10 sweeper would eliminate the need to maintain two sweepers but would also improve water quality. How do you compare in -house versus contract sweeping? To compare in -house vs. contracting, it is important to make an "apples" to "apples" comparison. For example, such a comparison would add all the costs it currently takes in -house to perform that operation then divide that by a production rate. In this case, the production rate is curb miles. The City crows sweep approximately 2,800 curb miles per year at a cost of approximately $87,100. This works out to $31 a curb mile. How much would contract sweeping cost to provide the same level of service the citizens are currently receiving? On August 13, 2001, Council approved a Request for Proposals to outsource street sweeping based upon previous department analysis. Staff is negotiating with the top two contractors. The prices received indicate that the City could contract sweeping for $12.85 per curb mile. Based upon 2,800 curb miles with administration, contract street sweeping would cost approximately $37,000. In -House Street Sweeping Contract Street Sweeping COST SAVINGS $87,000 1 $37,000. 1 $50,000 Why is contracting out less expensive? Some of the reasons for this cost differential are the continued maintenance of the equipment, work schedules, the ability of a private company to purchase machines at lower rates, and the productivity gain from being specialized. Staff examined ways to improve the street sweeping operation significantly, but even if the City were to modify procedures and production rates, it still would not be sufficient to close the gap between the costs for in -house servicees vs. contracting. Do other agencies contract out their street sweeping? The success of a maintenance contract depends on the quality of the contractor as well as the commitment to administration and inspection. There has been a trend for some time now for smaller agencies to contract out this service. Approximately half of the agencies in Orange County contract out street sweeping. These include Brea, Buena Park, Dana Point, Garden Grove, Laguna Hills, Laguna Niguel, Laguna Woods, La Habra, Lake Forest, La Palma, Mission Viejo, San Juan Capistrano, Stanton, Westminster, and Yorba Linda. Even Los Angeles County Department of Public Works contracts out 75% of their street sweeping operation. Manhattan Beach also provides a weekly street sweeping of all residential and commercial streets. This includes City owned and/or operated parking lots as part of its pollution prevention program How would the City evaluate a contract sweeper? In a street sweeping contract, the City would evaluate services based on the level of cleanliness after sweeping, adherence to schedules, driver and equipment September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 7 safety, courtesy of operators, and number of complaints received. Use of photographs can assist in establishing various levels of cleanliness. There would also be performance monitoring and liquidated damages or payment deductions for poor performance. If the City were unhappy with the performance of a contractor, it would go back out for proposals for new contractors or re- establish in -house street sweeping. Staff recommends the Public Works Department re- evaluate its maintenance contracts for costs and overall performance every three years. What it the reasoning behind increasing street sweepingjrom mostly bi- monthly to weekly? Sweeping is important to a community for a variety of reasons. Street sweeping is an integral part of street maintenance and is a multi - purpose operation with three primary objectives: 1) improve ocean water quality; 2) reduce health hazards contained in or as a part of that material; 3) prevent materials from clogging sewer /storm drain systems; and, 4) provide a clean appearance for residents and the visiting public. Streets are continually subject to dust and dirt blown by wind, dust and dirt tracked by vehicles, leaves and general other debris. In an area that appears "clean," it is common to pick up several tons of dirt and debris in a 20 -block area. This material goes to an appropriate landfill instead of entering the stomt/sewer systems. Increasing all the streets to weekly sweeping will greatly facilitate meeting the City's objectives. It is common opinion among experts in ocean water quality that increasing street sweeping will help keep pollutants from reaching the ocean and street cleaning has been associated with positive effects on the environment for many years. With contract operations, the City will use a regenerative air sweeper. These sweepers meet the new AQMD regulations and provide the ability to remove finer particulates. A significant finding in storm water quality is that most of the pollution in street surface contaminants is in the fine solids smaller than 43 microns (.00017 inch) which is a similar consistency to flour. TYMCO REGENERATIVE AIR `100% Path Clammed ar Air -lint Vann, ■ECNANICAL SWEEPERS 1- 0% Vaaaam 100% arum. VACUUM SWEEPERS 05%Oruani OWy]4% Vacuum ada "ae Since Seal Beach is a coastal city, it is important for us to set the standard for other cities to follow since other cities also contribute to the quality of the ocean water at our beaches. The City recendy received grant funding to install $60,000 worth of catch basin filters to help reduce the amount of pollutants that enter the City's storm drain system. These devices work best with more frequent street sweeping. September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 8 What would be the schedule for weekly sweeping? Through negotiations with the contractors, the following is a preliminary schedule. Neighborhood Schedule Time Old Town Area 1: South of Central Avenue and South of Electric Avenue cast of 12'" Street. Monday and Thursday Alternate Sides 8AM— IPM Old Town Area 2: North of Central and Electric Avenue, South of Marina Drive and Pacific Coast Highway. Tuesday and Wednesday 8AM— IPM Bridgeport Tuesday and Wednesday 8AM— IPM Hill and Cove Monday and Thursday (Alternate Sides) 8AM — IPM College Park West Tuesday and Wednesday SAM— tPM College Park East Tuesday and Wednesday 8AM —IPM By incorporating sweeping on alternate sides, there would never be a time when a resident could not park on either side of the street. Is there a way to reduce the number of street sweeping signs? In College Park East and College Park West, the City could eliminate street sweeping signs within the tracts and place one at each entrance to the tract, if sweeping occurred simultaneously. Advantages Disadvantages Improved Aesthetics. Eliminate all street sweeping Prohibits parking on either side of the street for signs within tract with one at en to each tract. a 5 -hour period. Sweeping streets in one day instead of each side of Residents have two days in which they cannot the street on two separate do I park on one or the other side of the street. To accommodate this change, the City would initially use decal overlays for sign changes. Staff estimates a cost to the City of $56,000 to change out signs. What are Council's options? The average property owner currently pays $.50 per month for street sweeping. Council's options include: Overall Yearly Cost Decision Matrix Service Level In -house Outsourcing Current Schedule (Resrdemral: Option 1: Option 2: twice a month) Cost prohibitive $37,000 $87,000 - Saves the City $50,000 This option requires purchase of a compared to in -house and $200,000 sweeper in next year's budget. closes the deficit. A fee increase would still be necessary to address $50,000 deficit. Weekly Sweeping Option 3: Option 4: $185,000 $85,000 Cost prohibitive based upon comparison increase service in provide for with contracting analysis. cleaner streets and improved ocean water quality. September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 9 Rate Increase Decision Matrix Service Level In -house Outsourcing Current Schedule (Randennal: Option l: Option 2: twice a month) Raise Fees. Keep Fees the Same. $ 0.50 For single - family residence, fees No rate increase would be required. $ 3.10 would raise from $.50 to a $1.46 River Condos $ 18.00 per month. eisure World Weekly Sweeping Option 3: Option 4: $ 0.50 Raise Fees. Raise Fees. $ 0.50 Cost prohibitive based upon For single- family residence, fees $ 0.50 comparison with contracting would raise from $.50 to a $1.46 per $ 0.50 analysis. month. Option 4 Weekly Street Sweeping Fee Increase Fee Cateeory Current Monthly Charge Proposed Feefor Weekly Street Sweeping Multi-Parcel Private Communities $ 0.30 $ 0.88 Non-Residential $ 0.50 S 1.46 Single Family $ 0.50 $ 1.46 Trailer Park $ 3.10 S 9.05 River Condos $ 18.00 S 52.56 eisure World $ 62.00 $189.80 Boein $ 0.50 $ 1.46 Bixb Ranch $ 0.50 $ 1.46 Bixb Tennis $ 0.50 $ 1.46 Oakwood $ 0.50 $ IA6 If option #4 is selected and the City desires to proceed with the Proposition 218 process, who is allowed to vote? All affected property owners will receive mailed ballots. From our discussions with the City Attorney's office, each property owner has one vote. Multi - parcel private communities, such as Leisure World, River Beach, and the Trailer Park, has only one vote per private community since it is based on overall ownership. Is there an adjustment to the fee for inflation so the City will not he in the same deficit predicament in the future? In 1988, City Council implemented fees to offset the cost of providing services. As time passes with inflation, the cost of providing services increases. In the Request for Proposals, staff requested an adjustment of the rate based upon the Consumer Price Index (CPI). Prices from the street sweeper contract can change at the end of the one -year contract term. As an option, the City may extend the contract on a year -to -year basis not to exceed an additional two years upon written mutual agreement. September 24, 2001 City Council Agenda Report — Tree Trimming/Street Sweeping Fee Increases Page 10 Prices may be adjusted upward or downward to reflect changes to the net percentage change in the CPI. This will prevent future deficits in the program from reoccurring. What will happen if the election fails? The Public Works Department plans to complete negotiations with the successful street sweeping contractor and switch from in -house to contract services. The City would be able to close the deficit and maintain the current level of service, but not be able to increase frequency of service without subsidy from the General Fund. FISCAL IMPACT: General Fund monies will continue to supplement revenues collected through community service fees without changes to the program structure for tree trimming and street sweeping services and/or approval of fee increases. RECOMMENDATION: Staff recommends the City Council conduct the public hearing to receive public comment on the proposed fee increases. After the close of the public hearing, staff recommends that the City Council consider and make a determination on 1) the tree trimming program; 2) the street sweeping program; and, 3) the resolution(s) authorizing the proposed fee increases. JuqCWotsuya, b4sistant tifCity Manager