TO: CITY COUNCIL
FROM: ADAM PIRRIE, CITY MANAGER
DATE: JANUARY 28, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
UPDATE ON CITY COUNCIL PRIORITIES AND 2024-26 OBJECTIVES (FUNDING SOURCES: VARIOUS)
Body
SUMMARY
After resident requests to conduct a more robust priorities setting process with community input prior to the development of the 2024-26 Budget, staff engaged the Mejorando Group to facilitate a City Council Priorities process. The process included a community survey, three community focus groups, and a City Council workshop.
At the workshop, the City Council reaffirmed the seven existing priorities, which had been previously approved in April 2022. In addition to the seven long-term priorities, the City Council identified 27 objectives that include policies, projects, and programs that staff will work on during the 2024-26 budget cycle.
The 2024-26 City Council Priorities and Objectives were approved by the City Council at its April 23, 2024 meeting. At that time, the City Council also directed staff to provide biannual updates in January and July of each fiscal year. The attached City Council Priorities Update reflects the current status of the City Council Priorities and Objectives.
Additionally, at the City Council meeting on October 22, 2024, the City Council requested that as part of this update, staff return with information on the City’s current fees/policies regarding bulk item pick-ups of refuse for homeowners and for tenants residing at multi-family properties. That information is provided in this report, and staff is seeking direction on how the City Council would like to move forward.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Receive and file the update on the 2024-26 City Council Priorities and Objectives; and
B. Provide direction to staff regarding the bulk item collection program.
Body
ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Request additional information from staff.
B. Take no action.
FINANCIAL REVIEW
The process of updating City Council Priorities was intended to inform the development of the 2024-26 City Budget. In many cases, objectives identified by the City Council required the allocation of funding and/or resources through the budget development process. Accordingly, the financial impacts related to the 2024-26 Council Priorities and Objectives have been accounted for in the City’s 2024-26 Budget.
The cost to prepare this report is estimated at $4,000 and is included in the Administrative Services and Community Services Departments’ operating budgets.
ANALYSIS
2024-26 Priorities and Objectives
In November 2023, the City began a public engagement process to gather community feedback on City Council Priorities. The City conducted a community survey that asked participants for their opinions on City programs and services, priorities for the City Council, and suggestions for improving City operations and programs. Additionally, the City hired Patrick Ibarra of the Mejorando Group to facilitate three community focus group meetings (held in December 2023 and January 2024) and a City Council Priorities Workshop, which was held on January 27, 2024.
At the workshop, the City Council reaffirmed the seven existing priorities, which had been formally approved in April 2022:
• Preserve Our Natural, Cultural and Historic Resources
• Maintain Financial Stability
• Invest in the Maintenance and Improvement of Our Infrastructure
• Ensure the Safety of Our Community Through Community-Based Policing and Emergency Preparedness
• Increase Livability in Our Neighborhoods and Expand Opportunities for Our Businesses
• Promote Community Engagement Through Transparency and Communication
• Develop Anti-Racist and Anti-Discrimination Policies and Plan to Achieve Community and Organizational Diversity, Equity, and Inclusion
The City Council also requested additional information on several work plan items or “objectives” that it would like to further consider, all of which the City Council provided additional direction on during its March 12, 2024 regular meeting. Based on the direction that has been provided, at its meeting on April 23, 2024, the City Council approved the 2024-26 City Council Priorities and Objectives document, which informed the Budget development process for 2024-26 (July 1, 2024, through June 30, 2026). At that time, the City Council also directed staff to provide biannual updates in January and July of each fiscal year.
The City Council Priorities Update (Attachment) reflects the current status of the City Council Priorities and Objectives.
Sanitation Fee Follow-Up
At the October 22, 2024 City Council meeting, the City Council requested that as part of this update, staff return with information on the City’s current fees/policies regarding bulk item pick-ups of refuse for multi-family properties.
Current Program and Rates
The City offers distinct programs and rate structures for single-family residential customers and multi-family accounts. The current rates and program structure for single-family residential and multi-family accounts are as follows:
Single-Family Residential
35-gallon $28.70 per month
64-gallon $34.30 per month
96-gallon $43.75 per month
Single-family residential rates are determined based upon the size of the trash container. In addition to trash, organic waste, and recycling, single-family residential rates also include up to three bulky item loads per calendar year. Sanitation staff tracks how many loads each account has utilized during the calendar year. Pick-ups that are not utilized do not carry over to the following year and no bill credit is available if the service is not utilized. On average, the City picks up approximately 3,200 bulky item loads per year. Staff estimates that approximately 12 percent of available bulky item loads are utilized in any given year. Given this consistent level of demand, the Sanitation Division is staffed to provide this level of service.
Once an accountholder has utilized their three included loads, fees are charged for the pick-up of additional loads. Single-family residential customers pay $36.89 for “on-schedule” pickups or $44.29 for “off-schedule” pickups. On-schedule pickups are scheduled on the customers’ regular service day on a first-come, first-serve basis. Scheduling on the regular service day limits the geographic footprint and allows for more efficient routing and collection. Off-schedule pickups are scheduled on Fridays throughout the City, resulting in more staff time and vehicle mileage for collection; therefore, there is a higher fee.
Multi-Family Rates, Property Types, and Account Setup
Automated Containers $26.70 per unit per month
Bin Service $26.70 per unit per month
For multi-family properties, the property manager sets up a single sanitation service account to service all units within the community. The property manager is responsible for the account payments, although the property manager may recoup the costs through rent or HOA fees. Rates are billed at a fixed rate per unit. Like single-family residential service, multi-family rates include trash, organic waste, and recycling service.
Multi-family rates are set at a lower cost per unit than single-family residential rates - between $2 and $17.05 per month depending on the size of the trash container. With the lower fixed monthly cost, the multi-family rate does not include any bulky item pickups. Bulky item pickups can be scheduled by property owners, managers, or residents at a cost of $44.29 per load. Payments for paid bulky items are made at the time of scheduling via cash, check or credit card and; therefore, do not affect the account billing.
The City of Claremont has approximately 176 “residential multi-family” accounts and 54 “corporate multi-family” accounts, with a total of approximately 3,360 units. The 176 “residential multi-family” accounts are typically duplexes, triplexes, and small communities. The 54 “corporate multi-family accounts” consist of both renter-occupied apartment communities and certain owner-occupied condo/townhome communities.
For all multi-family accounts, the property manager sets up a single account with the City that provides service to all units within the development. The property owner/manager designated on the account is responsible for the sanitation bill. Unresolved, unpaid sanitation bills can result in a lien being placed on the corresponding property, so only authorized individuals can make changes to the account. For example, tenants/residents cannot add trash containers or increase service levels; these changes must be requested by the property manager that is responsible for the monthly bill. Residents can schedule bulky item pick-ups and paid services, as payment is made at the time of booking and does not affect the sanitation bill.
Considerations
Tracking Challenges
If bulky items were provided to multi-family properties as part of their bundled trash rate, a tracking system would need to be developed to track usage. Staff currently tracks the number of loads each single-family residential customer has utilized within a calendar year and begins charging for pickups after the third load. This is possible because the City has customer accounts and billing records for each single-family property. Therefore, the City has the property address and owner information on file for eligibility verification and tracking.
Setting up a similar tracking system for multi-family properties presents several challenges. The City has records regarding the total number of multi-family units for billing purposes but does not have a breakdown of unit numbers (i.e. unit 100, 101, 102 etc.). Therefore, tracking usage by unit number is impractical and would require investing in a new database. Likewise, the City does not have access to resident information for multi-family units. The multi-family sanitation account only provides contact information for the property manager. The City does not have access to the names of individual residents living in multi-family communities. Without unit or resident information, verifying program eligibility and tracking usage presents significant challenges. Developing a multi-family tracking database for 3,360 multi-family residents, including tracking resident turnover, would likely involve significant one-time setup and on-going maintenance costs, in addition to staff time.
Since unit and resident information is not currently available for multi-family communities, the City could consider providing a set number of bulky items to the property manager/ account holder. This would require that residents in multi-family communities contact the property manager to request to use a complimentary bulky item pickup, who would subsequently contact the City to arrange for service under the account. This setup could be problematic for multi-family communities that do not have on-site property management services. Similar to the City, the property manager may not have resident information to verify eligibility, particularly for large, owner-occupied HOAs. The property manager may also not have the administrative capacity to track bulky item usage and call in collection requests. Finally, when calling in collection requests on behalf of the residents, the property manager may not have access to information regarding the size, number, and type of bulky items that are being scheduled for pickup. For these reasons, having the property manager coordinate bulky item pickups on behalf of residents is not recommended.
Increased Program Costs and Lost Revenues
The 2024-25 budget includes $18,000 in projected revenue associated with paid bulky item pickups. If bulky items were provided to multi-family customers at no additional cost, staff anticipates this revenue would decrease. This revenue goes to support current staffing and service levels. In addition, providing bulky item collection at no additional cost could result in increased demand. If demand were to increase, additional staff would be required to schedule and complete additional bulky item pickups. Disposal and hauling costs would also likely increase, but the amount is unknown at this time.
Staff anticipates that the above cost increases would require increased monthly fees to ensure cost recovery. The Sanitation Fund is a self-supporting enterprise fund where fees cover the full cost to provide service. Anticipated cost increases could be likely addressed by increasing the fixed monthly price for multi-family accounts to be consistent with the lowest rate for single-family residential accounts, resulting in a $2 per unit per month increase.
Whether this service model is preferable versus the current model would depend largely on how many bulky items a multi-family community utilizes each year. If the community typically schedules many paid bulky items, a higher fixed monthly fee may be advantageous to the customer. If the community does not regularly utilize the paid bulky item program, the higher fixed monthly fee could result in added costs with negligible added service.
Low-Income Discount Alternative
As established above, the current single-family and multi-family programs differ in their offerings but are equitable in that single-family customers receive a slightly higher level of included service but also pay a higher fixed monthly cost. Despite the current structural equity, there may be concerns regarding low-income multi-family residents for whom the cost of paid bulky item pickups may present a financial burden. Implementing a program similar to the single-family residential program presents significant challenges as detailed above. As such, staff proposes as an alternative that the City Council consider directing staff to develop a subsidized bulky item collection program for income-qualified residents.
The City has an existing low-income discount for sanitation services. This discount applies to regular service fees. The City also offers discounted valet service for income-qualified and disabled residents that cannot bring their containers to the curb for service. The City could implement a similar, income-qualified program for multi-family residents for whom bulky item pickup fees are a barrier. This alternative could enable the City to assist low-income residents with making basic services accessible while maintaining existing, lower multi-family rates.
Options to Consider
In light of the above information, staff recommends that the City Council consider several options and provide direction to staff:
• Option 1
o Direct staff to maintain the current program structure.
• Option 2
o Direct staff to develop a multi-family bulky item collection program comparable to the existing single-family residential program; develop program guidelines; and implement rate changes to cover the anticipated program costs.
• Option 3
o Direct staff to develop a subsidized bulky item program for income-eligible multi-family residents.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainability Plan, Economic Sustainability Plan, General Plan, Youth and Family Master Plan, and the 2024-26 budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Adam Pirrie Katie Wand
City Manager Deputy City Manager
Attachment:
City Council Priorities Update