Council kills plan for free trash pickup for schools
New garbage company is giving local schools a 50% rate reduction
Published: Thursday, March 18, 2010 at 1:00 p.m.
Last Modified: Wednesday, March 17, 2010 at 4:02 p.m.
A plan to provide free garbage collection for Petaluma schools died Monday after City Council members voiced concerns over improper costs to garbage service customers and burdens on the city.
Council members discussed a plan that would provide free garbage service to struggling schools by letting the city's new garbage service provider — known as Petaluma Refuse and Recycling Inc., and part of North Bay Corp. — save money by using the city's backup garbage trucks.
“It's not often that we have an opportunity at City Hall to help schools,” said Councilmember Mike Healy, who first talked about the plan with North Bay representatives.
Petaluma currently has three backup garbage trucks designated for use only within the city. Under the plan, the city would allow North Bay to add the trucks to its pool of reserve trucks used for its whole garbage operation throughout Sono-ma and northern Marin counties.
North Bay would then use the cost savings to provide free garbage collection at schools in the Petaluma, Old Adobe and Waugh school districts. The reserve trucks are designated for use only in Petaluma because the city's past garbage service provider, Green Waste, couldn't easily bring trucks up from the South Bay.
The plan stalled after some council members expressed concerns over its impacts on garbage rate-payers, city staff and the city's liability.
Council members voted 4-3 to table the plan. Mayor Pam Torliatt said that unless new information comes forward, the plan will probably not be addressed again.
Healy called the vote “just a polite way to kill it.”
North Bay took over the city's garbage contract from San Jose-based Green Waste on March 8, and already provides service to Novato, Cotati, Rohnert Park, Santa Rosa and other nearby cities. When they took over, North Bay decided to charge schools half of what normal ratepayers pay due to cost savings provided by a new school recycling program. Therefore, the proposed plan would eliminate the other half of the charges. City departments already receive free garbage collection.
The plan would save between $80,000 and $100,000 per year for the three school districts.
“Last year, we cut $5 million. We may have to cut $2.5 million this year,” said Greta Viguie, superintendent of Petaluma City Schools. “We are looking for every way we can to provide savings.”
Council members all commended the effort to help struggling schools, but some worried that residents would ultimately pay for the trucks.
“At the end of the day, there is no free service. Let's not kid ourselves,” said Councilmember David Glass.
Glass said that the plan would unfairly charge rate-payers to pay for the upkeep of trucks that are used by schools — even if the rate-payers don't directly benefit from the free garbage pickup at schools. Glass also said he was worried that the plan would be considered a prohibited gift of public funds under state law.
“It's not that this isn't a community benefit. But does it actually have a benefit to people that are paying?” said Glass.
Healy said that the plan is legally allowed, which was confirmed by City Attorney Eric Danly. Healy also said that a provision in the plan requires schools to keep their fields and facilities open for the public, which would provide a public benefit.
“I'm concerned about making sure that our rate-payers receive the benefits for the rates that they pay,” said Torliatt, adding that people “want to see the City Council be very conservative in its fiduciary responsibility to ratepayers.”
Torliatt also raised concerns that the plan could put the city at risk of a lawsuit from a rate-payer challenging the decision. She also said that the council should “stick to its goals” to reduce the city's liability and reduce costs of staff time.
Healy said that he thinks it is “extremely unlikely” that the plan would put the city at legal risk.
After the council discussed the plan, Healy made a motion to direct staff to write a report on the issue and address the plan again at a later date. Torliatt then made an amended motion to table the issue. Torliatt, Glass, Renée and Barrett voted in favor of the motion, while Healy, Rabbitt and Harris dissented.
Some council members also said that they want to allow more time for the city to establish a relationship with North Bay.
“You can't blame them for taking a look at our company, which has been here one week,” said Steve McCaffrey, director of governmental affairs for North Bay. McCaffrey added that the company was “very comfortable” with the vote.
North Bay took over the city's garbage contract last week after Green Waste pulled out of Petaluma for economic reasons. The contract started in 2005 and will end in 2015. When it took over, North Bay offered to provide a 10 percent rate reduction if the city extends the contract for five more years. Petaluma's rates are slightly higher than surrounding cities of similar size.
“It would be great to do something like that down the road,” said McCaffrey about rate reductions.
However, the city's charter prohibits extending a contract until one year before its expiration date.
Healy said he would like the council to begin discussing an amendment to the city's charter in order to allow contract extensions earlier. The amendment would have to be approved by voters, and would apply specifically to rate reductions, said Healy.
McCaffrey said that North Bay may be open to the providing the rate reduction earlier, although he wants to leave time for the company to work with the city to “prove ourselves.”
(Contact Philip Riley at philip.riley@arguscourier.com)
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