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2013-08-21 SDEEC MinutesMINUTES OF THE REGULAR VERNON SUSTAINABLE DEVELOPMENT AND ENERGY EFFICIENCY COMMISSION HELD WEDNESDAY, AUGUST 21, 2013, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Hector Garcia, Michael Gavina, Jim Andreoli, Peter Corselli, Jaime Villanueva, and David Honda MEMBERS ABSENT: Armando Espinoza The meeting was called to order at 3:30 p.m. by Chairperson Garcia, who also led the flag salute. CHANGES TO THE AGENDA Commission Director Leonard Grossberg announced that there are no changes to the agenda. However, the presentation component of the discussion and possible recommendation agenda item, has been modified slightly since it was distributed. Staff will be noting the changes during the presentation. All other items remain the same. PUBLIC COMMENT Commission Director Leonard Grossberg announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. No one responded. MINUTES – To be received and filed. 1. Minutes of the Regular Sustainable Development and Energy Efficiency Commission Meeting held June 19, 2013. It was moved by Andreoli and seconded by Gavina to receive and file the minutes. Motion carried, 6-0. DISCUSSION AND POSSIBLE RECOMMENDATION(S) TO CITY COUNCIL 1. Potential recommended revisions to Vernon’s franchise hauler trash program, and related discussion of how authorized franchisees are to be determined. Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 2 of 12 Recommendations (1) Find that merely making recommendations to the City Council or the City’s Staff do not constitute actions subject to the California Environmental Quality Act (“CEQA”), and therefore such actions are exempt pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Affirm that the Commission wishes to fully implement Senator De Leon’s recommendation from August 22, 2011 that the City “Revise [the City of Vernon’s] existing trash hauling program with strong environmental standards;” and (3) Recommend that City’s Health Officer/Director of Health and Environmental Control fully implement Section 11 of City Council Resolution No. 2011-149 which states in part: “The City’s Health Officer/Director of Health and Environmental Control is directed to establish a Trash Hauling Franchise Program to consolidate trash hauling enterprises within the City and improve the environmental and safety standards that govern trash hauling in the City. The program shall be operated in accordance with strong environmental standards; and (4) Provide specific recommendations to the City’s Health Officer/Director of Health and Environmental Control on how best to consolidate trash hauling enterprises and improve environmental and safety standards. Staff will use these recommendations to craft proposed amendments to Chapter 12 of the Vernon Municipal Code, entitled “Waste Management and Recycling.” Commission Director Leonard Grossberg noted the various components which include Senator De Leon’s recommendation and the directives issued by the City Council pursuant to Resolution No. 2011-149. Grossberg recalled that the overall consensus of the Commission was to keep the status quo plus enhancements. Some of the enhancements have already been enacted such as the AB341 policy which increases recycling. Additionally, enhancements include the support of Air Quality Management District (“AQMD”) alternative fuel vehicle regulations. Grossberg reported on potential increased bond requirements. This would protect the City if haulers fail to file their Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 3 of 12 quarterly fee. In conversation with haulers, the bond requirement is standard practice and they have no issues with increasing the bond limit. Grossberg explained the importance of the bond requirement as a hauler can go through two quarters before it is found to be in default. This and other insurance requirements are standard for all city agreements. The City Attorney’s Department has recommended that this also be addressed. The Commission had previously requested a study to determine the hauler’s impact on greenhouse gas (“GHG”) emissions. Grossberg cautioned that the study requires a lot of data, much of which has to be assumed. Grossberg explained that the overall purpose of the recommendation is to reduce the number of haulers because doing so reduces the GHG emissions. In response to Chairperson Garcia’s inquiry on how the City will support AQMD, Grossberg advised that the City has no authority over their affairs. AQMD has their own mandates which their agency regulates and enforces. The City will simply be supporting their regulations as part of the proposed enhancements. In response to Chairperson Garcia, Grossberg advised that the bond requirement limit has not been determined. Currently, haulers are required to provide a bond in the amount of $10,000. A variable amount that would correlate with the hauler’s quarterly billing is being considered. Grossberg confirmed for Chairperson Garcia that staff plans to take the final determination on the bond requirement directly to the City Council. Commissioner Corselli stated that the Commission can have its own recommendation, as it is not in favor of reducing trash haulers and that the consensus is to remain at a status quo plus enhancements. Grossberg recalled that the Commission’s initial enhancement to increase the franchise fee would need to be presented to the City voters, and not the Commission. Staff is seeking an alternative recommendation to address the reduction of haulers. Commissioner Corselli noted that Senator De Leon recommendations did not include a reduction of the number of haulers. In response, Grossberg explained that reducing the number of Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 4 of 12 haulers reduces the GHG emissions and improves the environmental standards. Krishna Nand of EMP, Inc. presented on GHG emissions. He explained that the amount of GHG emissions is directly proportional to fuel use during normal driving and idle time. The proposal to reduce the number of haulers is expected to reduce GHG emissions. Nand presented and explained the formula used to calculate GHG emission levels. He noted that a study in Vernon was not conducted but that the data and information are from the South Coast Air Quality Management District (“SCAQMD”) and apply to this situation. Commissioner Corselli reasoned that the total trash is not being reduced and would remain the same; therefore, reducing the number of haulers will not result in fewer vehicle trips. In response, Nand explained that the trash would be shared or distributed among the remaining vehicles. Corselli noted that unless trash hauler vehicles are functioning at less than full loads, the same number of vehicles would be necessary. In response, Grossberg advised that a number of front-end loading haulers confirmed that no additional vehicles would be needed, it would simply require better routing and planning. In response to Commissioner Corselli’s inquiry on whether less than full vehicles are going to the landfill, Grossberg explained that haulers go to other cities to fill their loads to full capacity. However, the goal is to be more efficient within the City. Commissioner Corselli argued that if vehicles are driving to other cities to complete their load, or using more vehicles in other cities to compensate for full loads in Vernon then there is no difference in the total number of vehicles overall. It has been confirmed through past public comment that haulers are not taking less than full loads to the landfills. Furthermore, if the haulers that are eliminated are roll off vehicles, then there is no reduction in vehicles because they would need to be replaced by another. Commissioner Andreoli is concerned that the benefits of reducing the number of haulers is not quantified. He opined that there is insufficient data to justify the elimination of businesses in Vernon. Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 5 of 12 In response, Nand explained that time and funds would be necessary to conduct the analysis; however, the qualitative data that were presented indicate that there will be a reduction in GHG emissions. Commissioner Andreoli cautioned that there are families involved; staff is asking the Commission to eliminate businesses in Vernon based on incomplete data. Grossberg advised that the study applies; SCAQMD spent a lot of time and energy developing the formula. He advised that many components have to be assumed or estimated. The data could be criticized, but the formula indicates that there will be a reduction, however incremental. Commissioner Corselli recalled that the Los Angeles County Disposal Association had reported on studies during past Commission meetings. The issue is that at the last meeting, staff was directed to conduct the study so that the Commission can make an informed decision. Now the Commission is being asked again to consider the reduction of the trash haulers with no justification. The vehicle reduction that occurs in Vernon will be captured in Southern California; in reality the number of vehicles will not be reduced. Dave Davis of MSW Consultants presented on the franchise hauler market share based on tonnages. He noted that the number of trucks has been revised to represents the number of vehicles needed to conduct the job based on the tonnage. Additionally, information on whether it is a small, medium, or large, and local, or regional is being presented. Davis noted logical breakpoints in the data based on tonnages should the Commission decide to reduce the number of haulers and use the breakpoints as thresholds. Commissioner Corselli comment that in the past there were more franchised trash haulers and that naturally, over-time, the number of haulers was reduced. In response to his comment on haulers that claiming refuse from Vernon in the past, and negatively impacting the City’s diversion rate when in fact the refuse was not from Vernon, Davis explained that this was an issue at the Puente Hills landfill but that the refuse tonnage is reconciled with the landfills’ records now. Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 6 of 12 Commissioner Corselli commented on Staff’s proposed thresholds based on tonnages to limit the number of haulers advising that some of the companies specialize in roll off vehicles which would result in no elimination of vehicles. He disagreed with staff’s rationale that eliminating the lower spectrum of haulers would reduce the number of vehicles. Grossberg further reported on the natural breaks in the data as thresholds for hauler reductions. He recommended an annual requirement of 1,000 tons. This would result in a reduction of GHG. In response to Chairperson Garcia’s comment on the City’s AB341 policy and ultimate reduction of refuse going to landfills which would result in a reduction of GHG because not as many vehicles or trips will be needed, Grossberg explained that in theory yes, but there is also recyclables to consider, and how the material recycling facilities process it. Grossberg confirmed for Chairperson Garcia that there is one hauler located in Vernon and they have a sorting facility; other haulers are coming from other cities. Grossberg further added that although the City has source control it has not exercised that authority nor does it anticipate exercising it. Commissioner Honda noted the there is a difference between a front end load and roll off truck and questioned the number of vehicles for two of the haulers. In response, Grossberg advised that the data reflect the minimum number of vehicles needed to handle the total tonnage. He recognized that more vehicles have been issued permits, but the data presented reflect the number of vehicles necessary to service the City. Chairperson Garcia reasoned that even without the actual data, based on the SCAQMD study there would be a reduction in GHG. The issue can be debated extensively as to how much GHG will be reduced, but as a Commission the call for stronger environmental standards must be addressed. He proposed that the Commission move forward with Staff’s recommendation. Commissioner Corselli and Chairperson Garcia debated on whether there would actually be a reduction of GHG and a benefit to the City. Commissioner Andreoli advised that the City has a history of “rubber stamping.” The mandate is to have stronger Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 7 of 12 environmental controls, however, there seems to be a big emphasis on the reduction of haulers in order to reduce GHG. He questioned whether there were other ways that would have the same end result. He stated that the Commission has to do what is best for the community not the City. In response, Commissioner Villanueva advised that things are still status quo. By not addressing the emission level, it could put the City at risk for scrutiny. By removing some of the haulers that may go to the landfill less than full, it would reduce emission levels. Commissioner Corselli argued that the haulers are not going to the landfills half-full and GHG goes everywhere, it is not limited to Vernon. None of the data presented have indicated that there would be a reduction in vehicles. Commissioner Honda reasoned that government imposes mandates but does not provide method to address it. Perhaps the Commission needs to be more creative in order to achieve the requirements of the mandate without eliminating jobs. Davis explained for Commissioner Corselli how the minimum number of vehicles needed to service the City was calculated which differs from the number of vehicles permitted to conduct business in Vernon. Commissioner Corselli suggested that perhaps the better solution is to talk to companies using roll offs and advocate for front end loaders, due to roll offs’ inefficiencies. In response, Davis advised that they are more economical for larger quantities of waste, especially if they have compactors. However, he does not know whether haulers have the compactors, if they do not, it could be very expensive. Commissioner Corselli moved to adhere to the Commission’s December 19, 2012 decision to remain at the status quo plus enhancements; those enhancements being, the political support of AQMD and Safe California standards. Existing haulers are to be left in place, and allow competition to eliminate the number of haulers. It was seconded by Andreoli. Motion carried, 4-2, with Villanueva and Garcia in opposition. Commissioner Honda commented that the Commission really needs to look at this and be more proactive to help the situation. There is a mandate by the Senator that needs to be addressed. In Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 8 of 12 response, Commissioner Corselli advised that the Commission is being pushed to reduce the number of haulers but it needs to be justified. The City of Vernon is supposed to be business friendly, eliminating businesses is not adhering to this notion. Commissioner Villanueva noted that areas such as San Pedro have taken steps for stronger environmental controls. He suggested that Vernon do the same and reduce the number of haulers. The Commission has agreed to comply with existing laws, but no enhancements have been made, it remains the status quo. Grossberg and Commissioner Corselli debated over the rationale on whether the tonnage thresholds per hauler would result in a reduction of vehicles. Deputy City Attorney Scott Porter confirmed for Commissioner Honda that the Commission’s recommendation will be presented to the City Council, but that they are not required to approve. Porter clarified that Resolution No. 2011-149 has three directives to staff, one of which is to reduce the number of haulers. Commissioner Corselli disagreed that “consolidate trash hauling” meant a reduction in trash haulers, and interprets it as ensuring that haulers function more efficiently. Porter advised that the two other directives are to address the environmental standards and the safety standards. He inquired whether the Commission is recommending any changes to Resolution No. 2011-149. From staff’s perspective the current recommendation does not address the safety component. In response, Commissioner Corselli advised that there is no evidence that there are safety concerns. The vehicles are inspected by the Health and Environmental Control Department and other entities. Porter inquired whether Resolution No. 2011-149 needs to be addressed. The Commission has two options as he interprets it, it can either recommend that Resolution No. 2011-149 be amended to remove the safety standards requirement, or the Commission should make a recommendation that address the safety standards. Commissioner Villanueva sought clarification on the safety standards that need to be reviewed. In response, Davis advised Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 9 of 12 that other cities address safety by requiring that haulers submit their biennial inspection of terminals report, inspection reports, to the City. The City may monitor or follow up if there is cause for concern. Additionally, other cities request workers’ compensation claims history report. This would identify if a company has been placed on OSHA’s high risk employer list. Davis advised that these are two ways the City could leverage off of already mandated procedures. Commissioner Corselli interprets this as additional paperwork, which might result in increased processing fees. He recommended that the City Council revisit their mandates under Resolution No. 2011-149 and remove the safety standards component. Commissioner Honda cautioned against it. In response, Commissioner Corselli argued that if other entities already monitor this, why is there a need to place that burden on Vernon. Commissioner Villanueva sees value in the City being involved and receiving said reports. He explained that if the reports indicate that a hauler is a safety concern or has frequent violations, then it might be in the City’s best interest not to have them do business in Vernon. Davis further advised that this would be one way for the City to leverage off of things that are already required by other entities. He acknowledges that it is extra paperwork, but it might be advantageous for the City to stay informed. Commissioner Corselli moved that the City Council refine the term safety standards. Grossberg expressed his concerns that no recommendation to address the requirements have been made. In response, to Commissioner Villanueva’s same comments, Commissioner Corselli advised that the Commission supports the Clean Air Act and other environmental standards which continue to evolve and change. Porter recommended that Corselli further define his recommendation to the City Council. Commissioner Corselli amended his motion to recommend that the City Council either amend (remove) the words “and safety standards” or define the term as stated in Resolution No. 2011- 149. It was seconded by Honda. Motion carried 6-0. Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 10 of 12 Commissioner Villanueva stated that all that has been done is remain at status quo. Commissioner Honda reported on AQMD Rule 1193 requirements and the transition of vehicles to clean burning fuel. He reasoned that this would eventually reduce the number of vehicles and that the Commission has complied with the mandate. Commissioner Villanueva argued that the status quo remains and no enhancements have been made because all vehicles are eventually required to go to natural gas. Chairperson Garcia sought to address the consolidation of the haulers. Garcia suggested certain requirements for vehicle permits. In response, Porter advised and explained that the number of authorized or permitted vehicles may not be the best avenue to address the consolidation of haulers. Porter clarified that the goal has been to reduce the number of trips. He asked whether the Commission wished to require a minimum amount of front end capacity in order to operate in Vernon. This may result in the consolidation of haulers. Commissioner Corselli expressed his concern that if certain haulers are eliminated, the remaining haulers can permit and increase their number of vehicles. In response, Grossberg advised that in talking with haulers, they have indicated that there would not be a need to increase the number of vehicles. Porter recalled his question on whether to set a minimum tonnage requirement for front end loaders and inquired whether there were any additional motions. In response, Commissioner Corselli expressed his concern that a recommendation needs to be well thought out and vetted. Porter suggested placing the item on the next agenda. Commissioner Villanueva suggested further review of front end haulers in order to address the reduction of vehicles and make a recommendation to the City Council. Commissioner Corselli argued that front end loaders are more efficient. Commissioner Villanueva explained that the intent is for front end loaders to come in empty and leave Vernon full. This will reduce emission levels and wear and tear on City streets. Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 11 of 12 Commissioner Honda advised that this is making the assumption that businesses are going to function in that manner, but they do not. Haulers may pick up some loads in Vernon and then more in other cities, but in the end they take full loads to the landfills. Commissioner Andreoli argued that under that logic all trucking companies, such as UPS, should have the same restrictions, but reasoned that this is unrealistic. He recommended that as a Commission, they should continue to explore emissions, but that a recommendation to the City Council has been made. He advised that the recommendation should be presented and wait to see how the City Council proceeds. In response to Commissioner Andreoli, Porter explained the process of the recommendation to the City Council. Commissioner Villanueva moved to prohibit anyone to operate within the City without a specified tonnage. The motion was not seconded and died due to lack of a second. ORAL REPORTS Commission Director Grossberg proposed that the October 2013 meeting be cancelled. Unless there is a need for a special meeting, the next meeting thereafter is December 18, 2013. There was a general consensus to cancel the October 2013 meeting. Deputy City Attorney Scott Porter suggested opening up for public comment. Chairperson Garcia inquired whether anyone in the audience wished to speak to the Commission. Matthew Katanjian of AAA Rubbish, Inc. advised that every year the City inspects the hauler’s vehicles. However, haulers are required to undergo more thorough inspections, and he is more than willing to submit the reports to the City. He also advised that he is willing to purchase some of the routs from the low tonnage haulers if it would help the City meet its goals. Al from GB Services was not in favor of tonnage requirements for haulers. He argued that vehicles in general contribute more to the GHG emission levels than haulers. Regular Sustainable Development and Energy Efficiency Commission Meeting Minutes August 21, 2013 Page 12 of 12 With no further public comment, at 5:18 p.m. it was moved Corselli and seconded by Villanueva that the meeting be adjourned, Motion carried, 6-0. ________________________ Hector Garcia Chairperson ATTEST: _________________________ Ana Barcia Secretary