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READY? GOOD AFTERNOON, EVERYONE. TODAY'S FRIDAY, NOVEMBER 15TH EDITION OF THE FINANCE MANAGEMENT SUBCOMMITTEE IS NOW ON GOOD SESSION. ANY PUBLIC COMMENT ON NON-AGENDA ITEMS MEMBERS OF THE PUBLIC. AND THEN WE'LL MOVE OVER TO ITEM TWO, THE 2425 BUDGET REVIEW YOU'RE GOING THROUGH OUR 2021. ASSISTANT DIRECTOR BENEATH. THANK YOU, PAUL. GOOD AFTERNOON, EVERYONE. HAPPY FRIDAY. IF YOU ARE DOING WELL HERE IN FRONT OF US IS THE FINANCIAL OVERVIEW OF OUR NUMBERS AS OF OCTOBER 24TH. THE FORMAT IS ALL BECAUSE HE'S THE SAME. FOR THE FIRST THREE COLUMNS, A, Q, C. CAPTURES THE HISTORICAL ACTUALS OF THREE YEARS COLUMN C IS THE MID-YEAR E IS THE 2024 ESTIMATED ARTICLE, WHICH IS THE SAME NUMBER THAT WOULD CARRY OVER FROM OUR LAST MEETING. AS OF NOW, WE DON'T HAVE ANY OTHER FURTHER UPDATES AND OUR AUDIT IS ANTICIPATED TO COMPLETE BY SOMETIMES THEY'LL END UP THIS MONTH, IF NOT EARLY DECEMBER. SO BY THEN WE WOULD HAVE A FINALIZED NUMBER AND WE WOULD PROVIDE AN UPDATE IN THE NEXT COMMITTEE MEETING. RHONDA, CAN YOU PLEASE SHRINK THE BOX SO THAT WAY YEAH YES THAT WAY WE PEOPLE WHO WATCH THIS OR MOVE IT. YEAH. THANK YOU. THANK YOU. AND THEN FOR TODAY'S PURPOSE, WE'RE GOING TO FOCUS ON COLUMN G AND H. H AND WHICH YOU SEE THAT RED 33% IS BASICALLY THE STREAMLINED PROJECTION OF HOW MUCH OUR REVENUE EXPENDITURE SHOULD BE. G REPRESENTS THE ACTUAL NUMBERS. SO LET'S QUICKLY REVIEW OUR REVENUES. COMPARING TO OUR ADOPTED BUDGET REVENUE YEAR TO DATE IS AT $11.182 MILLION, WHICH IS EQUIVALENT TO ABOUT 18%. IF WE DISSECT THAT NUMBER FURTHER, YOU SEE THAT OUT OF THIS 11 MILLION, ABOUT $5 MILLION OR 38% WAS CONTRIBUTED BY DEPARTMENTAL REVENUES, SUCH AS FINES, FEES. PENALTIES, OTHER PERMIT FEES PERMITS. WHEREAS IF YOU LOOK ONE LINE DOWN, THERE'S THE OTHER REVENUE. IT'S ABOUT 13%. WITHIN THERE, A MAJORITY OF THE REVENUE WILL HAVE TO BE CONTRIBUTED TOWARDS THE SALES TAX. RPTTS DISTRIBUTION, OUR PROPERTY TAX, AND MOTOR VEHICLE TAX, WHICH HAS A TIMING DIFFERENCE AND SO SINCE WE'RE IN OCTOBER, OUR NEXT UPCOMING PROPERTY TAX PAYMENT OR DISTRIBUTION COMING FROM THE COUNTY IS DUE IN DECEMBER. WE'RE ANTICIPATING SOMEWHERE BETWEEN $1.7 TO $2 MILLION. THE TOTAL REVENUE THAT'S GOING TO SIGNIFICANTLY BOOSTS OUR YEAR-TO-DATE REVENUE ANOTHER SIGNIFICANT ITEM WILL BE THE MOTOR VEHICLE TAX THAT TYPICALLY COMES IN TWO INSTALLMENTS. THE FIRST ONE WILL BE IN JANUARY. OUR ANTICIPATION OF THAT REVENUE WILL BE AROUND 2.2 TO $3.4 MILLION. AND ANOTHER, LASTLY, THE RPTTF TYPICALLY COMES IN JANUARY AND JUNE. SO IN JANUARY, THE NEXT AMOUNT DUE WILL BE AROUND 1.8 TO $2 MILLION, ADDING THE PROPERTY TAX OF 1.8, THE RPTT FS OF 1.8, AND THEN THE MOTOR VEHICLE TAX OF 3.2 WHEN WE GET AROUND 6.8 MILLION DOLLARS AND TOTAL REVENUE. AND SO THAT WOULD HELP US CATCH UP TO WHERE WE NEED TO BE BY JANUARY. EXCUSE ME, SORRY, RPTTF IS WHAT WE GET FROM REDEVELOPMENT AGENCY. THAT'S OUR DISTRIBUTION FROM THE FORMER REDEVELOPMENT AGENCY. THANK YOU FOR CLARIFYING THAT. REDEVELOPMENT, PROPERTY, TAX, TRUST FUND. YES. AND ARE THERE ANY QUESTIONS BEFORE WE MOVE ON TO THE EXPUNG YOURSELF? HERE TODAY ARE DEPARTMENTAL EXPENDITURES ARE ON 15.5 OR 30% IS SLIGHTLY BELOW THE 33% WHICH IS ACTUALLY THE CORRECT TRAINING. THERE ARE NO MAJOR ALERT AT THIS POINT. EVERYTHING IS OPERATING AS NORMAL. AND THERE'S A COUPLE LINES DOWN, YOU WILL SEE THAT THE OTHER EXPENSES IS CURRENTLY IS AT 7.5 MILLION DOLLARS ROUGHLY 80%. AND BECAUSE THERE'S A REASON WHY THIS SECTION, THE OTHER EXPENSES SO HIGH IS THAT WE, AND THE ATTEMPT ANTICIPATION OF US SPENDING ALL OF THE ALLOTTED MEASURE M EXPENSE WE HAVE ALREADY RE-ADDED THAT 4.95 TO THE $7.5 MILLION. SO THEREFORE, IF WE ADD THE DEPARTMENTAL COST ALONG WITH OTHER COSTS ARRIVING AT 23.1 MILLION DOLLARS WHICH IS ABOUT 37%. HOWEVER, IF WE WERE TO REMOVE THE MEASURE M, WHICH HAS NOT BEEN YET SPENT, IT HAS ONLY BEEN ASSIGNED AS OF THE ADOPTED BUDGET, THEN OUR TRUE ACTUAL EXPENDITURE YEAR TO DATE WILL BE ONLY AT 29%, SLIGHTLY BELOW THE 33%. AND THEN WE HAVE SOME OTHER PREPAID ITEMS THAT ARE TYPICALLY YOU WOULD PAY THROUGHOUT THE YEAR, BUT WE PAY IT UP FRONT. CORRECT. LIABILITY INSURANCE COVERS UNDERFUNDED LIABILITY. BECAUSE WE GET LIKE A 15% DISCOUNT IF WE PAY THE CALPERS UNFUNDED LIABILITY UPFRONT SO THAT'S WHY THE NUMBERS LOOK SO LOPSIDED. IF WE WERE TO ADD THE TOTAL REVENUE LINE WITH THE TOTAL EXPENDITURE LINE THE NET WILL BE EARNINGS ARE SHOWING THAT 11.9 MILLION DOLLAR IN AS IF UNFAVORABLE ONE OVERSPEND, BUT ESSENTIALLY THAT HAS TO DO WITH REVENUE HAVING THE TIMING DIFFERENCE. OTHERWISE, WE'RE STILL ON TRACK. WE'LL CONTINUE TO MONITOR OUR FINANCIALS ON A MONTHLY BASIS. ARE THERE ANY QUESTIONS I CAN HELP YOU ANSWER? THANK YOU. AND TURN OVER TO YOU. OKAY, THANK YOU. I'M MOVING IT OVER TO ITEM THREE UM IS GOING TO GIVE YOU AN UPDATE ON ARPA GENERAL FUND SURPLUS AND MEASURE AND SURPLUS EXCELLENT. THANK YOU. SO WE'LL START WITH IN THE ORDER OF THE MEMORANDUM, STARTING WITH ARPA. YOU'LL SEE SOME COOL COLORS HAVE BEEN ADDED TO THIS TABLE. THE BLUE. THE BLUE ARE FINISHED PROJECTS THAT HAD A BALANCE. THAT BALANCE IS GOING TO GO TO PREMIER FIELDS, WHAT WE PROPOSE THAT BALANCE GO TO PREMIER FIELDS. THE BALANCE COMBINED WAS $53,771. PREMIER FIELDS CAN TAKE ANY PENNIES WE CAN THROW AT IT. SO WE'RE EXCITED TO INCREASE OUR SPORTS TOURISM CONTRIBUTIONS FROM ARPA. FROM 9 MILLION. WELL, 2, $9,646,582. THAT'S THE ONLY CHANGES THAT YOU'LL SEE IN ARPA. WE ARE ON TRACK WITH OUR REPORTING. WE ARE ON TRACK WITH OUR ALLOCATING, AND WE ARE ON TRACK WITH OUR OBLIGATING. SO I'M ACTUALLY EXCITED TO FILE THE JANUARY REPORT, WHEREAS THAT'S BEEN A SOMETHING ON MY MIND FOR A LONG TIME. SO WE'RE EXCITED. THINGS ARE LINING UP AND WE'RE DOING SOME REALLY GREAT PROJECTS WITH THIS AT THE MOMENT. ANY QUESTIONS ON THE ARPA? GREAT. SO WHEN WE SCROLL TO OUR MEASURE M SURPLUS, NOTHING HAS CHANGED SINCE THE LAST TWO MONTHS OF REPORTING SO THAT THERE ARE NO QUESTIONS I HAVE NOTHING TO REPORT THERE. SIMILARLY WITH GENERAL FUND SURPLUS. STILL SITTING AT A $788,813 AMOUNT LEFT FROM OUR FISCAL YEAR 21, SO IT'S NO CHANGES NO EXPECTED, NO ADDITIONAL PROJECTS HAVE BEEN SUGGESTED FOR THESE FUNDS. ANY QUESTIONS ON INSTANT ABOUT SOMETHING BEING RECOMMENDED FOR FIELDS ON MONDAY? WE CAN CHAT. I BASICALLY… IT'S A POTENTIAL. ALL RIGHT. AWESOME. OKAY, ITEM NUMBER FOUR, STEPH WILL PRESENT CALENDAR YEAR 2025 RECYCLING CENTER AND TRANSFERS STATION RATE INCREASE IT'S BEING PROPOSED BY DIAGONAL RESOURCES GOVERNORS AND JOHN AND AS LONG AS LOADING THE HARD WAY? AND WE HAVE OUR MVR REPRESENTATIVES HERE AS WELL FOR ADDITIONAL QUESTIONS. SO A LOT OF WHAT YOU'LL SEE TONIGHT, AT LEAST THE FIRST HALF, IS GOING TO BE A BIT OF REVIEW FROM THE LAST FOUR YEARS. TO GO TO THE NEXT SLIDE, RHONDA. FOUR YEARS AGO, WE RECEIVED A COMPREHENSIVE RATE. WE DID A COMPREHENSIVE SOLID WASTE RATE ANALYSIS. I'LL START OVER. WE RECEIVED OUR ANNUAL PROPOSAL FROM MDRR FOR ANNUAL RATE ADJUSTMENTS. BOTH ON THE RESIDENTIAL COLLECTION SIDE, AS WELL AS THE RECYCLING CENTER AND TRANSPORTATION RCTS SIDE. SO STARTING WITH COLLECTION RATES, AND WHEN WE SAY COLLECTION RATES, WE MEAN RESIDENTIAL CURBSIDE AND COMMERCIAL CURBSIDE COLLECTION. SO WHEN A TRUCK COMES, GRABS YOUR STUFF AND TAKES IT TO TRANSPORTATION. SO RECALL IN 2021, STAFF AND MDRR CONDUCTED A COMPREHENSIVE RATE ANALYSIS AND WE CHALLENGED MDRR TO DO FOUR THINGS. KEEP THE RATE INCREASE IN SINGLE DIGITS, PRESERVE AFFORDABILITY OF LOW INCOME SENIOR RATES, MAINTAIN A SMALL VARIANCE BETWEEN CARTS. AND PRODUCE A LONG-TERM STRATEGY FOR ENSURING THE PUBLIC SAFETY AND REDUCING CART CONTAMINATION IN PITTSBURGH. A REMINDER, CART CONTAMINATION IS NOT WHEN PEOPLE PUT HAZARDOUS WASTE IN THEIR CARTS IT'S WHEN ITEMS THAT SHOULD BE IN THE BLOCK CART END UP IN THE BLUE OR GREEN CART. VICE VERSA AND ALL THAT. IT'S REALLY IMPORTANT THAT WE ARE SOURCE SEPARATING CORRECTLY, ESPECIALLY AS 1383 IS ROLLING OUT. NEXT SLIDE. SO WHAT COUNCIL DID IN 2022, WE MET ALL FOUR OF THOSE ITEMS AND THEY ADOPTED A BASE RATE STRUCTURE THAT INCREASED OVER FIVE YEARS, 2022 TO 2026. THIS IS OUR FOURTH YEAR. UPHELD THE ANNUAL CPI ADJUSTMENTS ALLOWED BY THE FRANCHISE AGREEMENT. AND AUTHORIZE THE RETIREMENT OF THE 32 GALLON CART OVER THESE FIVE YEARS. SO AS PROPOSED. RATES WOULD BE EFFECTIVE JANUARY 1ST, 2025 WOULD INCLUDE A 2.76 CPI PERCENT CPI INCREASE APPLYING TO ALL OF THE CARDS EXCEPT FOR THE 32 GALLON CART. 32 GALLON CART WOULD HAVE AN EXTRA BOOST IN ORDER TO ALIGN ITS PRICE WITH THE 64 GALLON CART AS WE RETIRE THE 32 GALLON CART. THAT BOOST WOULD BE A 5.96% INCREASE, AND I WILL EXPLAIN HOW WE GOT TO THAT NUMBER ON THE VERY NEXT SLIDE. SO WHAT YOU SEE HERE ON THE LEFT WITH THE YELLOW HIGHLIGHTS IS THE RATE STRUCTURE THAT WAS APPROVED IN 2021, STARTING IN 2022. ON THE RIGHT IS THIS RATE STRUCTURE AS CPI HAS BEEN DETERMINED EACH YEAR. SO THEY'RE THE ACTUAL RATES. WHAT'S HIGHLIGHTED IN ORANGE IS WHAT'S PROPOSED FOR 2025. YOU'LL SEE THAT 2.76% CPI INCREASE FOR ALL SIZES EXCEPT FOR THE 32 GALLON PART. SO ESSENTIALLY, THE WAY YOU GET TO THE 5.96% INCREASE TO THE 32 GALLON CART IS BY CALCULATING THE DIFFERENCE BETWEEN THE EXPECTED CPI AND THE EXPERIENCED CPI. SO YOU'LL SEE THAT IF YOU TAKE 3.35%, THIS IS LINE SEVEN, WAS THE ANTICIPATED CPI IN THE APPROVED RATE STRUCTURE MINUS 2.76%, YOU HAVE THAT DIFFERENCE. IF YOU SUBTRACT THAT DIFFERENCE FROM THE ANTICIPATED CPI, ALSO ON LINE SEVEN FOR THE 32 GALLON CART AT 6.55%. MINUS THAT DIFFERENCE, YOU GET 5.96%. SO ESSENTIALLY, WE KNEW THAT THE 32 GALLON CART INCREASE HAD TO GROW. BUT THAT RATE IS BASICALLY THE DIFFERENCE BETWEEN EXPERIENCE AND EXPECTED CPI. ANY QUESTIONS ON HOW WE GOT TO THE PROPOSED RATES HERE? ALL RIGHT, SO IF WE GO TO THE NEXT SLIDE, WE EXPECT THAT NEXT YEAR THE PRICES WILL CONVERGE. YOU CAN SEE THAT THESE TWO GREEN LINES REPRESENTING THE 32 GALLON AND THE 64 GALLON COSTS SINCE 2020 SINCE WE PUT THIS FIVE-YEAR INCREASE IN PLACE. WE EXPECT THAT THEY'LL CONVERGE NEXT YEAR ALONG THE SAME FORMULA AND NEXT SLIDE. WE'VE GOT EVIDENCE THAT PEOPLE ARE ALREADY MAKING EFFORTS TO RIGHT SIZE BASED ON THE ENCOURAGEMENT FROM THE 22 GALLON CART SIZE. SO WE ALREADY HAD A CONVERGENCE IN 32 GALLON CUSTOMERS, NUMBER OF PEOPLE WITH 32 GALLON AND NUMBER OF CUSTOMERS WITH 64 GALLON. AND YOU CAN SEE THAT THE 32 GALLON IS CONTINUING THE TREND DOWN. AS WE EXPECTED IT WOULD. AND A REPORT FROM, I'M PUTTING MDR ON THE SPOT HERE, BUT ARE WE HEARING FROM DRIVERS THAT WE ARE GETTING LESS CART CONTAMINATION? ARE WE EXPERIENCING THAT YET? IS IT STILL TOO EARLY IN THE FIVE-YEAR, I DID NOT ASK YOU TO COMPARE THIS BEFOREHAND. SO IF YOU DON'T HAVE AN ANSWER WE ARE STARTING TO SEE LESS CONTAMINATION BECAUSE PEOPLE HAVE MORE ROOM IN THE PROPER CART WHERE THEY SHOULD BE PUTTING MATERIAL. WE RECENTLY IMPLEMENTED AI CAMERAS ON ALMOST ALL OF OUR TRUCKS AND WE'RE TESTING DIFFERENT SOFTWARE PACKAGES THAT ARE LOOKING AT THE CONTAMINATION AS IT'S COMING IN. SO WHILE THAT HAS NOT BEEN ROLLED OUT YET, WHAT WE'RE ULTIMATELY LOOKING TO DO IS HAVE SOMETHING THAT EDUCATES THE EACH HOMEOWNER. VIA TEXT MESSAGING BY THEIR ROUTE TO SHOW HOW THEIR CONTAMINATION IS GOING TO ACTUALLY COMPARE TO THEIR NEIGHBORS. ALMOST LIKE YOU SEE ON YOUR WATER BILL WITH YOUR USAGE AND EVERYTHING ELSE. SO THE CARD SIZING IS HEALTHY, BUT WE HOPE THE CARD SIZING COMBINED WITH USING TECHNOLOGY AND BEST PRACTICES WILL CONTINUE TO HELP WITH EDUCATION. EXCELLENT. AND IF WE GO TO THE NEXT SLIDE, WE WILL SEE THAT EVEN WITH THIS INCREASE, OUR AVERAGE MONTHLY RESIDENTIAL COST FOR COLLECTION IS STILL LOWER THAN THE BAY AREA AVERAGE. I PUT A RED ARROW THERE TO SHOW PITTSBURGH IN CASE THIS WASN'T BIG ENOUGH. JUST ADD TO THE COLORS THAT YOU SEE THERE. BUT WE'RE RIGHT IN THE MIDDLE, NINTH LOWEST OR EIGHTH HIGHEST OUT OF 17. SO NO CHANGE IN POSITIONING FROM WHERE WE'VE BEEN. EVERYBODY'S EXPERIENCING THESE INCREASES. I WILL STOP TO SEE IF THERE ARE QUESTIONS, BUT JUST SINCE THE RATE STRUCTURE WAS ALREADY APPROVED IN 2021, WE'RE NOT REQUESTING FEEDBACK NECESSARILY. THIS CPI INCREASE IS ALLOWED BY WHAT WAS APPROVED IN 21. NO QUESTION? OH, NO QUESTION. HE DOESN' YOUR LAST SLIDE REALLY WAS A QUESTION I HAD OVER SAYING IN TERMS OF THE REDUCED NUMBER OF FOLKS WITH THE 32 YEAH, SO APPRECIATE THAT. OF COURSE. AND IF YOU DO GET THE QUESTION, WE GET IT EVERY SO OFTEN, YOU KNOW. UNABLE TO PUSH A 64 GALLON CART OR I DON'T HAVE ROOM ON MY PROPERTY TO STORE IT. WE'VE HAD A COUPLE OF INSTANCES AND WE ARE YOU KNOW WHILE TAKING 32 GALLON CARTS OFF THE STREET AND NOT LETTING NEW CUSTOMERS SIGN UP FOR A 32 GALLON CART, THERE ARE EXTENUATING CIRCUMSTANCES WHERE THE 32 CART GALLON CART IS THE RIGHT CART FOR THAT PERSON. AND WE TAKE THAT ON A CASE-BY-CASE BASIS. MDRR GOES OUT. DEPENDING ON THE TYPE OF COMPLAINT, THEY ASSESS WHETHER OR NOT 32 IS ACTUALLY DOABLE AND WE GO FROM THERE. IT SHOULD BE NOTED THAT NO NEW STARTS SO ANY NEW CONSTRUCTION UNLESS THEY'VE PROVEN THAT YEP CANNOT HAVE A 32. SO THAT HAS BECOME WHAT WE CONSIDER A LEGACY SIZE THAT'S NOT AVAILABLE. AND YOU'RE STARTING TO SEE MORE AND MORE PEOPLE SHOOT THE BIGGER SITE BECAUSE OF THAT PRICE NO DOUBT. WHEREAS BEFORE THEY WERE ONLY MAKING THE DECISION BASED UPON PRICE SO IT IS WORKING. AND THEN WE STILL HAVE TO PHASE OUT AND LITERALLY ONCE AS THAT PRICING EQUALIZES. BRING PEOPLE A 64 GALLON CARD. AND UNLESS THEY REFUSE IT, THAT'S WHAT WOULD BE DONE. AND THAT WAS PART OF THE PRIOR APPROVAL. MOVING ON, CARISSA. THANK YOU, RHONDA. WE'LL TRANSFER OVER TO OUR CTS RATES. SO SIMPLY, MDRR HAS REQUESTED A 3.41% CPI INCREASE EFFECTIVE JANUARY 1ST, 2025. THIS IS ALLOWED BY THE EXCLUSIVE OPERATING AGREEMENT. AND THE CPI LOOKS DIFFERENT. THAN THE CPI REPORTED FOR RESIDENTIAL BECAUSE PER THE TWO SEPARATE AGREEMENTS ONE'S CALCULATED AUGUST TO AUGUST, ANOTHER IS CALCULATING OCTOBER TO OCTOBER. SO EVERY YEAR THESE CPIS DON'T LOOK THE SAME. I CALCULATED FOR THE SAME TIME SPANS, BUT STARTING AND ENDING IN DIFFERENT MONTHS. IF WE GO TO THE NEXT SLIDE, WHAT DOES THIS DO? HOW DOES THIS HELP US COMPARE TO OTHER RCTS RATES? SO, AND WHAT SAL SHARED WITH ME RECENTLY IS THE OTHER RCTS RATES ON THIS TABLE INCLUDE 2024 RATES. OURS IS THE ONLY 2025 RATE UP HERE PROPOSED 2025 RATE. SO IF NOBODY ELSE RECEIVES AN INCREASE THIS YEAR, WE ARE NINTH SEVENTH LOWEST OR FOURTH HIGHEST, EXCUSE ME, OUT OF THESE NINE FOR PERSPECTIVE HER PERSPECTIVE. LAST YEAR, WE WERE EIGHTH LOWEST OR FIFTH HIGHEST. SO IT MOVES US UP ONE SPOT, ASSUMING WE'RE THE ONLY RCTS TO RECEIVE INCREASES IN 2025. YOU WILL SEE ATTACHED IN YOUR MEMO IS THE FULL LIST OF THESE RATES. THAT THIS WOULD ACROSS ALL THE MATERIALS RECEIVED. AND THIS ITEM HERE, AS REQUIRED BY THE OPERATING AGREEMENT, DOES REQUIRE COUNCIL APPROVAL OF OUR SYSTEM ADJUSTMENTS. UNLESS WE HAVE ANY MAJOR QUESTIONS OR OBJECTIONS HERE, YOU'LL SEE THAT I'M CONSTANTLY IN THE VIDEO. THERE'S NO QUESTION SOMEWHERE THE QUESTIONS MIGHT BE FOR… REPRESENTED, AS FAR AS JUST THE CORRELATION BETWEEN THE MINIMUM FEE AND THE RATE PER TIME CAN YOU SHARE JUST A LITTLE BIT ABOUT THAT AND I'M GOING TO SHARE THAT FOR INQUIRE BECAUSE WE KNOW THIS HAS IMPACT IT'S WHAT KIND OF DEAL WITH THE LEGAL DUMPING AND, YOU KNOW, IN TERMS OF ANY BARRIERS WHERE FOLKS MAY FEEL LIKE, WELL, THE PRICE IS GOING TO THE TRANSFER STATION TO GET RID OF THIS LOAD HERE. IT'S HIGH, ESPECIALLY JUST INDIVIDUALS THAT MAY BE TRYING TO GET RID OF A MATTRESS OR A FEW ITEMS THAT ARE IN THE HOUSE. SO JUST IN TERMS OF IF THERE'S ANY THOUGHT AROUND HOW WE LOOK AT THAT MINIMUM FEE AND THEN ALSO THE RATE PER TIME ABSOLUTELY. AND THAT MINIMUM FEE IS THE $43.50. WHICH IS THE CURRENT PRICING SARAH, I DON'T KNOW IF THIS UH THIS WAS THE CURRENT ON THE RADIO SHEET. THAT MAY HAVE BEEN A TYPO IT SHOWS THE 4350 WOULD ACTUALLY GO UP TO 45. SO $45, COUNCIL MEMBER, IS WHAT THE THE MINIMUM CHARGE THAT A RESIDENT WOULD PAY IF THEY WERE CLEANING OUT THEIR GARAGE ON A WEEKEND. SO IF A WHOLE PICKUP TRUCK WHERE WE PUT IT. WHETHER YOU'RE A FORD FAN, A DODGE FAN, OR A CHEVY IMAGINE F1500 OR AN F-150 THAT IS FULLY ERODED. THAT'S THE MINIMUM CHARGE PROVIDING THERE'S NOT A SPECIAL ITEM AS PART OF THE LOAD THAT IS STILL, I MEAN, I KNOW THAT CAN BE A LOT FOR INDIVIDUALS TO PAY BUT THAT COST IS YOU KNOW THAT IS THE MINIMUM THAT WE'RE ABLE TO CHARGE TO STILL THEN COVER THE COST TO SEND THAT MATERIAL TO THE LANDFILL PERFORM DIVERSION UNLIKE A LOT OF OUR COMPETITION ALL THEY DO IS TAKE THAT MATERIAL AND SEND IT TO THE LANDFILL, ACTUALLY. IF YOU GO TO OUR FACILITY ON ANY GIVEN DAY. WHEN A HOMEOWNER COMES IN AND DUMPS WE PULL OUT THE WOOD IF IT COULD BE RECYCLED. WE PULL OUT METAL. WE PULL OUT LITERALLY ANYTHING THAT SENDING TO THE LANDFILL. SO OF COURSE, THAT'S GOING TO BE A LITTLE BIT MORE EXPENSIVE THEN IF ALL YOU DID WAS RECEIVE IT. PUSH IT AND SEND IT TO THE LANDFILL. SO ALTHOUGH $45, AGAIN, AS A MINIMUM CHARGE, WE FEEL IS REASONABLE. COMPARED TO AT LEAST OUR NEAREST COMPETITION, WHICH IS REPUBLIC'S FACILITY IN MARTINEZ. THEY PERFORM ZERO EXTRA DIVERSION WHERE WE AGAIN ARE THERE MANUALLY PULLING MATERIAL OUT AND ONLY SENDING WHAT WE NEED TO. BUT THE MAJORITY OF YOUR CONSTITUENTS, THE MAJORITY OF YOUR RESIDENTS. THAT'S THE MINIMUM CHARGE THAT THEY WOULD BE PAYING ON A WEEKEND. WELL, I'M SURE YOU DON'T. AND THEN WE DO TRY TO OFFER AMERICA'S RECYCLING, YOU KNOW, SPECIAL DAYS AND EVENTS FOR EASY WASTE AND THINGS LIKE THAT. AWESOME. THANK YOU. OKAY, MOVING ON TO ITEM NUMBER FIVE OR STAFF REPORTS FOR YOU? SEEING NONE, WE ARE RETURNING. GREAT WEEKEND. THANK YOU.
65 Civic Avenue Pittsburg, CA 94565 P: (925) 252-6900 F: (925) 252-4814 pittsburgca.gov AGENDA FINANCE MANAGEMENT SUBCOMMITTEE Friday, November 15, 2024 4:00 PM Pacific Time (US and Canada) Pittsburg City Hall First Floor Conference Room, 4B 65 Civic Avenue Pittsburg, CA 94565 Subcommittee Members Juan Antonio Banales, Mayor Jelani Killings, Vice Mayor 1. 3. 2. 24-25 Budget Review, YTD through Oct 2024 Staff will provide the Subcommittee with an overview of the 2024-2025 Fiscal Year Budget YTD through Oct 2024. Subcommittee feedback requested. Public Comment on Non-Agenda Items Subcommittee and Staff Reports or Remarks Adjournment 4. 6. ARPA, General Fund Surplus, and Measure M Surplus Staff will provide the Subcommittee with an update related to the City of Pittsburg’s ARPA, General Fund and Measure M. Subcommittee feedback requested. Proposed Solid Waste Rate Increases Staff will present the calendar year 2025 Recycling Center and Transfer Station rate increase proposed by Mount Diablo Resource Recovery. Subcommittee feedback requested. 5.
65 Civic Avenue Pittsburg, CA 94565 P: (925) 252-6900 F: (925) 252-4814 pittsburgca.gov MEMORANDUM Item No. 2: 24-25 Budget Review, YTD through Oct 2024 Staff will provide the Subcommittee with an overview of the 2024-2025 Fiscal Year Budget YTD through Oct 2024. The Subcommittee has found this report to be helpful in identifying trends and items which require a closer examination to determine if budget adjustments are required. Many revenues and expenditures are received or expended on a consistent monthly basis, while other revenues and expenditures are received on an annual or quarterly basis. Staff will present a brief presentation highlighting many of the City’s funds and departments. Subcommittee feedback is requested. Date: November 15, 2024 To: Finance Management Subcommittee From: Paul Rodrigues, Director of Finance Re: Agenda Item No. #2 24-25 Budget Review, YTD through Oct 2024
65 Civic Avenue Pittsburg, CA 94565 P: (925) 252-6900 F: (925) 252-4814 pittsburgca.gov MEMORANDUM Date: November 15, 2024 To: Finance Management Subcommittee Re: Agenda Item No. 3: Special Revenues Update Agenda Item No. 4: Proposed Solid Waste Rate Increases American Rescue Plan Act (ARPA) Status Projects shown in blue are closed and underspent their ARPA allocations. On 12/16/24, these remaining ARPA funds totaling $53,771 will be obligated to the Pittsburg Premier Fields Project, increasing its ARPA allocation from $1,842,811 to $1,896,582 and total ARPA dollars invested in Sports Tourism to $9,646,582. Total ARPA Funding $ 16,290,477 Revenue Replacement Dream Courts $7,250,000 Allocated, Reso. 24,14531 Premier Fields $1,896,582 Allocated, Reso. 24,14499 Hotel Incentive $500,000 Allocated, Reso. 23-14341 Sports Tourism Subtotal $9,646,582 Police EV Chargers at City Hall $85,143 Allocated, Reso. 23-14272 Fleet Study $88,542 Allocated, Reso. 23-14229 Citywide Storm Drain Trash Capture Devices $200,000 Allocated, Reso. 24-14538 Revenue Replacement Subtotal $10,000,000 Non-Revenue Replacement Frontage Road Trail $812,250 Allocated, Reso 22-14220, 22-14223 Hotel Grant (Courtyard) $579,426 Allocated, Reso 23-14315 Local Business Coaching ("Pittsburg Eats!") $200,000 Allocated, Reso 23-14315 Additional Local Business Coaching ("Pittsburg Eats!") $120,000 Allocated, Reso 24-14499 Reviving the Heart of Pittsburg Pride $388,000 Allocated, Reso 23-14313 Americana Park Bypass Channel $103,000 Allocated, Reso 24-14453 City Park Restroom $1,250,000 Allocated, Reso 24-14499 PD servers $749,308 Allocated, Reso 24-14499 Enterprise Allocated, Resource Planning/Server $2,068,227 Allocated, Reso 24-14499 Non-Revenue Replacement Subtotal $6,290,477
65 Civic Avenue Pittsburg, CA 94565 P: (925) 252-6900 F: (925) 252-4814 pittsburgca.gov July 1, 2024: Measure M Surplus Current Year Annual Measure M Revenue 2021-2022 Revenues Available in 2022-2023 2022-2023 Revenues Available in 2023-2024 2023-2024 Mostly Received, Available in 2024-2025 2024-2025 Projected, Available in 2025- 2026 Budgeted Revenue $6,648,700 $6,446,244 $6,063,805 $6,340,000 Carryover from Previous Year Surplus (if PF Reallocated) $0 $0 $8,774 $12,451 Subtotal Revenue $6,648,700 $6,446,244 $6,072,579 $6,352,451 Base Allocations Economic Development Revenue Base $450,000 $450,000 $450,000 $450,000 Police Revenue Base $2,850,000 $2,850,000 $2,850,000 $2,850,000 Public Works Revenue Base $750,000 $750,000 $750,000 $1,250,000 Recreation - Senior Center Revenue Base $425,000 $425,000 $425,000 $425,000 Recreation - Youth Revenue Base $425,000 $425,000 $425,000 $425,000 Subtotal Revenue Base Allocations $4,900,000 $4,900,000 $4,900,000 $5,400,000 Measure M Revenue Annual Surplus + Previous Yr Carryover $1,748,700 $1,346,244 $1,172,579 $952,451 Economic Dev: W Leland Traffic Signal $850,000 $0 $0 $0 Economic Dev: 3rd Party Park Patrol $0 $200,000 $0 $0 Public Works: Sidewalk Repair $0 $170,803 $100,000 $100,000 Public Works: Skate Park Tree Removal $63,700 $0 $0 $0 Public Works: Streetlight Data w CCTA $85,000 $0 $0 $0 Public Works: BART Connectivity $0 $25,000 $0 $0 Public Works: Loveridge Road Pavement $0 $25,000 $0 $0 Public Works: Premier Fields $0 $0 $438,461 Public Works: Security Cameras $0 $300,000 $0 $0 Public Works: Streets $0 $0 $500,000 $0 Recreation: - Marina Center $750,000 $0 $0 $0 Recreation: Library Hours $0 $121,667 $121,667 $121,667 Recreation: Project 1751 - Youth Fund $0 $200,000 $0 $0 Reserves $0 $200,000 $0 $0 Recreation: Small World Park Train and Carousel $0 $295,000 $0 $0 Subtotal $1,748,700 $1,537,470 $1,160,128 $221,667 Balance $0 $8,774 $12,451 $730,784
65 Civic Avenue Pittsburg, CA 94565 P: (925) 252-6900 F: (925) 252-4814 pittsburgca.gov General Fund Surplus FY 2021- 2022 FY 2022- 2023 FY 2023- 2024 FY 2024- 2025 (Est) Starting Balance (Previous Year's Remaining Surplus) $7,851,300 $7,018,300 $5,675,113 $1,058,813 EXPENDITURES Expenditures Allocated FY 2021- 2022 FY 2022- 2023 FY 2023- 2024 FY 2024- 2025 (Planned) Pavement $0 $0 $1,251,300 $0 Skate Park $0 $435,187 $0 $0 Public Art $0 $200,000 $0 $0 Streetlight LED Replacement $0 $500,000 $0 $0 Heart of Pittsburg Pride Trees $0 $62,000 $0 $0 Police Activities League $0 $0 $0 $250,000 City Entrances $0 $0 $250,000 Utility Box Art $0 $0 $0 $20,000 Landscape Master Plan $0 $0 $1,500,000 $0 Premier Fields $0 $1,615,000 $0 Uncommitted $0 $0 $0 $0 Subtotal Expenditures Allocated $0 $1,197,187 $4,616,300 $270,000 Additional Draws on General Fund Surplus Kirker Pass Rd Resurfacing $233,000 $0 $0 $0 Park Patrol Contract $250,000 $0 $0 $0 Police Fencing $0 $0 $0 $0 Police Evidence Room $350,000 $0 $0 $0 Police Servers $0 $0 $0 $0 Park Safety Trees (Heart of Pitts Pride) $0 $30,000 $0 $0 Library Hours $0 $116,000 $0 $0 Subtotal Additional Draws $833,000 $146,000 $0 $0 Total Expenditures $833,000 $1,343,187 $4,616,300 $270,000 Balance $7,018,300 $5,675,113 $1,058,813 $788,813
65 Civic Avenue Pittsburg, CA 94565 P: (925) 252-6900 F: (925) 252-4814 pittsburgca.gov Agenda Item No. 4: Proposed Solid Waste Rate Increases As considered annually, the City received a proposal for 2025 solid waste collection and Recycling Center & Transfer Station (RCTS) rates as shown in the tables below. Table 1: Proposed Collection Rates 2024 Rates Proposed CPI Proposed 2025 Rates Delta in Dollars Low Income/Senior $34.48 2.76% $35.43 $0.95 32 Gallon $54.54 5.96% $57.78 $3.24 64 Gallon $61.51 2.76% $63.20 $1.69 96 Gallon $69.06 2.76% $70.96 $1.90 Proposed Collection rates include a 2.76% CPI increase across the board, as allowed by the Franchise Agreement for Refuse and Recycling Collection and Disposal between Pittsburg Disposal & Debris Box Services, Inc and the City, with the exception of a 5.96% increase to the 32-gallon cart. In 2022, City Council approved a 5-year phase out of the 32- gallon cart resulting in equal costs of the 32- and 64-gallon carts after a 5-year period. This rate convergence requires the cost of the 32-gallon cart to outpace that of the 64-gallon cart by 3.41% annually. Despite the increase, Pittsburg’s proposed collection costs remain under average among other East Bay Area jurisdictions. INSERT GRAPH FROM MDRR HERE As this was approved by City Council over a 5 year period in 2021, no Subcommittee feedback is required on this portion of the item.
65 Civic Avenue Pittsburg, CA 94565 P: (925) 252-6900 F: (925) 252-4814 pittsburgca.gov Proposed RCTS rates include a CPI increase of 3.41% based on all urban consumers for San Francisco-Oakland-Hayward. Per the Exclusive RCTS Operation Agreement (Operation Agreement) between Contra Costa Waste Services, Inc. and the City, proposed rates are rounded to the nearest $0.25. Table 2: Proposed RCTS Rates 2024 Rate CPI @ 3.41% Proposed 2025 Rate Bulk & Compacted Loads (Mixed Waste Rate) Per Ton $142.50 $4.86 $147.25 The proposed increase brings Pittsburg to the 4 th most expensive of 10 transfer stations in the Bay Area as shown by Table 3 below. Table 3: RCTS Rates Comparison Solid Waste Facility Location Bulk & Compacted Rate Per Ton Operator Minimum Fee Fremont Transfer Station Fremont $ 118.62 BLT $ 55.00 Contra Costa Transfer and Recovery Martinez $ 125.50 Republic Services $ 37.50 Central Disposal Site & Transfer Station Petaluma $ 135.00 Republic Services $ 33.00 Shoreway Environmental Center San Carlos $ 136.00 Rethink Waste $ 54.00 Golden Bear Richmond $ 136.80 Republic Services $ 36.05 Davis St. Transfer Station San Leandro $ 145.47 Waste Management $ 37.20 RCTS (Proposed as of January 1, 2025) Pittsburg $ 147.25 MDRR / Contra Costa Waste Service $ 43.50 Berkeley Transfer Station Berkeley $ 154.00 City of Berkeley $ 42.00 Pleasanton Transfer Station Pleasanto n $ 168.93 Pleasanton Garbage Service $ 33.78 Recology San Francisco San Francisco $ 219.86 Recology $ 50.00 $ 148.74 Bay Area Average
65 Civic Avenue Pittsburg, CA 94565 P: (925) 252-6900 F: (925) 252-4814 pittsburgca.gov Per the City’s Operation Agreement with MDRR, an annual CPI adjustment based on all urban consumers for San Francisco-Oakland-Hayward to RCTS rates is allowed with City Council approval. Staff desires Subcommittee feedback regarding future consideration by the City Council. Attachments: Proposed RCTS Full Rates Sheet
READY? GOOD AFTERNOON, EVERYONE. TODAY'S FRIDAY, NOVEMBER 15TH EDITION OF THE FINANCE MANAGEMENT SUBCOMMITTEE IS NOW ON GOOD SESSION. ANY PUBLIC COMMENT ON NON-AGENDA ITEMS MEMBERS OF THE PUBLIC. AND THEN WE'LL MOVE OVER TO ITEM TWO, THE 2425 BUDGET REVIEW YOU'RE GOING THROUGH OUR 2021. ASSISTANT DIRECTOR BENEATH. THANK YOU, PAUL. GOOD AFTERNOON, EVERYONE. HAPPY FRIDAY. IF YOU ARE DOING WELL HERE IN FRONT OF US IS THE FINANCIAL OVERVIEW OF OUR NUMBERS AS OF OCTOBER 24TH. THE FORMAT IS ALL BECAUSE HE'S THE SAME. FOR THE FIRST THREE COLUMNS, A, Q, C. CAPTURES THE HISTORICAL ACTUALS OF THREE YEARS COLUMN C IS THE MID-YEAR E IS THE 2024 ESTIMATED ARTICLE, WHICH IS THE SAME NUMBER THAT WOULD CARRY OVER FROM OUR LAST MEETING. AS OF NOW, WE DON'T HAVE ANY OTHER FURTHER UPDATES AND OUR AUDIT IS ANTICIPATED TO COMPLETE BY SOMETIMES THEY'LL END UP THIS MONTH, IF NOT EARLY DECEMBER. SO BY THEN WE WOULD HAVE A FINALIZED NUMBER AND WE WOULD PROVIDE AN UPDATE IN THE NEXT COMMITTEE MEETING. RHONDA, CAN YOU PLEASE SHRINK THE BOX SO THAT WAY YEAH YES THAT WAY WE PEOPLE WHO WATCH THIS OR MOVE IT. YEAH. THANK YOU. THANK YOU. AND THEN FOR TODAY'S PURPOSE, WE'RE GOING TO FOCUS ON COLUMN G AND H. H AND WHICH YOU SEE THAT RED 33% IS BASICALLY THE STREAMLINED PROJECTION OF HOW MUCH OUR REVENUE EXPENDITURE SHOULD BE. G REPRESENTS THE ACTUAL NUMBERS. SO LET'S QUICKLY REVIEW OUR REVENUES. COMPARING TO OUR ADOPTED BUDGET REVENUE YEAR TO DATE IS AT $11.182 MILLION, WHICH IS EQUIVALENT TO ABOUT 18%. IF WE DISSECT THAT NUMBER FURTHER, YOU SEE THAT OUT OF THIS 11 MILLION, ABOUT $5 MILLION OR 38% WAS CONTRIBUTED BY DEPARTMENTAL REVENUES, SUCH AS FINES, FEES. PENALTIES, OTHER PERMIT FEES PERMITS. WHEREAS IF YOU LOOK ONE LINE DOWN, THERE'S THE OTHER REVENUE. IT'S ABOUT 13%. WITHIN THERE, A MAJORITY OF THE REVENUE WILL HAVE TO BE CONTRIBUTED TOWARDS THE SALES TAX. RPTTS DISTRIBUTION, OUR PROPERTY TAX, AND MOTOR VEHICLE TAX, WHICH HAS A TIMING DIFFERENCE AND SO SINCE WE'RE IN OCTOBER, OUR NEXT UPCOMING PROPERTY TAX PAYMENT OR DISTRIBUTION COMING FROM THE COUNTY IS DUE IN DECEMBER. WE'RE ANTICIPATING SOMEWHERE BETWEEN $1.7 TO $2 MILLION. THE TOTAL REVENUE THAT'S GOING TO SIGNIFICANTLY BOOSTS OUR YEAR-TO-DATE REVENUE ANOTHER SIGNIFICANT ITEM WILL BE THE MOTOR VEHICLE TAX THAT TYPICALLY COMES IN TWO INSTALLMENTS. THE FIRST ONE WILL BE IN JANUARY. OUR ANTICIPATION OF THAT REVENUE WILL BE AROUND 2.2 TO $3.4 MILLION. AND ANOTHER, LASTLY, THE RPTTF TYPICALLY COMES IN JANUARY AND JUNE. SO IN JANUARY, THE NEXT AMOUNT DUE WILL BE AROUND 1.8 TO $2 MILLION, ADDING THE PROPERTY TAX OF 1.8, THE RPTT FS OF 1.8, AND THEN THE MOTOR VEHICLE TAX OF 3.2 WHEN WE GET AROUND 6.8 MILLION DOLLARS AND TOTAL REVENUE. AND SO THAT WOULD HELP US CATCH UP TO WHERE WE NEED TO BE BY JANUARY. EXCUSE ME, SORRY, RPTTF IS WHAT WE GET FROM REDEVELOPMENT AGENCY. THAT'S OUR DISTRIBUTION FROM THE FORMER REDEVELOPMENT AGENCY. THANK YOU FOR CLARIFYING THAT. REDEVELOPMENT, PROPERTY, TAX, TRUST FUND. YES. AND ARE THERE ANY QUESTIONS BEFORE WE MOVE ON TO THE EXPUNG YOURSELF? HERE TODAY ARE DEPARTMENTAL EXPENDITURES ARE ON 15.5 OR 30% IS SLIGHTLY BELOW THE 33% WHICH IS ACTUALLY THE CORRECT TRAINING. THERE ARE NO MAJOR ALERT AT THIS POINT. EVERYTHING IS OPERATING AS NORMAL. AND THERE'S A COUPLE LINES DOWN, YOU WILL SEE THAT THE OTHER EXPENSES IS CURRENTLY IS AT 7.5 MILLION DOLLARS ROUGHLY 80%. AND BECAUSE THERE'S A REASON WHY THIS SECTION, THE OTHER EXPENSES SO HIGH IS THAT WE, AND THE ATTEMPT ANTICIPATION OF US SPENDING ALL OF THE ALLOTTED MEASURE M EXPENSE WE HAVE ALREADY RE-ADDED THAT 4.95 TO THE $7.5 MILLION. SO THEREFORE, IF WE ADD THE DEPARTMENTAL COST ALONG WITH OTHER COSTS ARRIVING AT 23.1 MILLION DOLLARS WHICH IS ABOUT 37%. HOWEVER, IF WE WERE TO REMOVE THE MEASURE M, WHICH HAS NOT BEEN YET SPENT, IT HAS ONLY BEEN ASSIGNED AS OF THE ADOPTED BUDGET, THEN OUR TRUE ACTUAL EXPENDITURE YEAR TO DATE WILL BE ONLY AT 29%, SLIGHTLY BELOW THE 33%. AND THEN WE HAVE SOME OTHER PREPAID ITEMS THAT ARE TYPICALLY YOU WOULD PAY THROUGHOUT THE YEAR, BUT WE PAY IT UP FRONT. CORRECT. LIABILITY INSURANCE COVERS UNDERFUNDED LIABILITY. BECAUSE WE GET LIKE A 15% DISCOUNT IF WE PAY THE CALPERS UNFUNDED LIABILITY UPFRONT SO THAT'S WHY THE NUMBERS LOOK SO LOPSIDED. IF WE WERE TO ADD THE TOTAL REVENUE LINE WITH THE TOTAL EXPENDITURE LINE THE NET WILL BE EARNINGS ARE SHOWING THAT 11.9 MILLION DOLLAR IN AS IF UNFAVORABLE ONE OVERSPEND, BUT ESSENTIALLY THAT HAS TO DO WITH REVENUE HAVING THE TIMING DIFFERENCE. OTHERWISE, WE'RE STILL ON TRACK. WE'LL CONTINUE TO MONITOR OUR FINANCIALS ON A MONTHLY BASIS. ARE THERE ANY QUESTIONS I CAN HELP YOU ANSWER? THANK YOU. AND TURN OVER TO YOU. OKAY, THANK YOU. I'M MOVING IT OVER TO ITEM THREE UM IS GOING TO GIVE YOU AN UPDATE ON ARPA GENERAL FUND SURPLUS AND MEASURE AND SURPLUS EXCELLENT. THANK YOU. SO WE'LL START WITH IN THE ORDER OF THE MEMORANDUM, STARTING WITH ARPA. YOU'LL SEE SOME COOL COLORS HAVE BEEN ADDED TO THIS TABLE. THE BLUE. THE BLUE ARE FINISHED PROJECTS THAT HAD A BALANCE. THAT BALANCE IS GOING TO GO TO PREMIER FIELDS, WHAT WE PROPOSE THAT BALANCE GO TO PREMIER FIELDS. THE BALANCE COMBINED WAS $53,771. PREMIER FIELDS CAN TAKE ANY PENNIES WE CAN THROW AT IT. SO WE'RE EXCITED TO INCREASE OUR SPORTS TOURISM CONTRIBUTIONS FROM ARPA. FROM 9 MILLION. WELL, 2, $9,646,582. THAT'S THE ONLY CHANGES THAT YOU'LL SEE IN ARPA. WE ARE ON TRACK WITH OUR REPORTING. WE ARE ON TRACK WITH OUR ALLOCATING, AND WE ARE ON TRACK WITH OUR OBLIGATING. SO I'M ACTUALLY EXCITED TO FILE THE JANUARY REPORT, WHEREAS THAT'S BEEN A SOMETHING ON MY MIND FOR A LONG TIME. SO WE'RE EXCITED. THINGS ARE LINING UP AND WE'RE DOING SOME REALLY GREAT PROJECTS WITH THIS AT THE MOMENT. ANY QUESTIONS ON THE ARPA? GREAT. SO WHEN WE SCROLL TO OUR MEASURE M SURPLUS, NOTHING HAS CHANGED SINCE THE LAST TWO MONTHS OF REPORTING SO THAT THERE ARE NO QUESTIONS I HAVE NOTHING TO REPORT THERE. SIMILARLY WITH GENERAL FUND SURPLUS. STILL SITTING AT A $788,813 AMOUNT LEFT FROM OUR FISCAL YEAR 21, SO IT'S NO CHANGES NO EXPECTED, NO ADDITIONAL PROJECTS HAVE BEEN SUGGESTED FOR THESE FUNDS. ANY QUESTIONS ON INSTANT ABOUT SOMETHING BEING RECOMMENDED FOR FIELDS ON MONDAY? WE CAN CHAT. I BASICALLY… IT'S A POTENTIAL. ALL RIGHT. AWESOME. OKAY, ITEM NUMBER FOUR, STEPH WILL PRESENT CALENDAR YEAR 2025 RECYCLING CENTER AND TRANSFERS STATION RATE INCREASE IT'S BEING PROPOSED BY DIAGONAL RESOURCES GOVERNORS AND JOHN AND AS LONG AS LOADING THE HARD WAY? AND WE HAVE OUR MVR REPRESENTATIVES HERE AS WELL FOR ADDITIONAL QUESTIONS. SO A LOT OF WHAT YOU'LL SEE TONIGHT, AT LEAST THE FIRST HALF, IS GOING TO BE A BIT OF REVIEW FROM THE LAST FOUR YEARS. TO GO TO THE NEXT SLIDE, RHONDA. FOUR YEARS AGO, WE RECEIVED A COMPREHENSIVE RATE. WE DID A COMPREHENSIVE SOLID WASTE RATE ANALYSIS. I'LL START OVER. WE RECEIVED OUR ANNUAL PROPOSAL FROM MDRR FOR ANNUAL RATE ADJUSTMENTS. BOTH ON THE RESIDENTIAL COLLECTION SIDE, AS WELL AS THE RECYCLING CENTER AND TRANSPORTATION RCTS SIDE. SO STARTING WITH COLLECTION RATES, AND WHEN WE SAY COLLECTION RATES, WE MEAN RESIDENTIAL CURBSIDE AND COMMERCIAL CURBSIDE COLLECTION. SO WHEN A TRUCK COMES, GRABS YOUR STUFF AND TAKES IT TO TRANSPORTATION. SO RECALL IN 2021, STAFF AND MDRR CONDUCTED A COMPREHENSIVE RATE ANALYSIS AND WE CHALLENGED MDRR TO DO FOUR THINGS. KEEP THE RATE INCREASE IN SINGLE DIGITS, PRESERVE AFFORDABILITY OF LOW INCOME SENIOR RATES, MAINTAIN A SMALL VARIANCE BETWEEN CARTS. AND PRODUCE A LONG-TERM STRATEGY FOR ENSURING THE PUBLIC SAFETY AND REDUCING CART CONTAMINATION IN PITTSBURGH. A REMINDER, CART CONTAMINATION IS NOT WHEN PEOPLE PUT HAZARDOUS WASTE IN THEIR CARTS IT'S WHEN ITEMS THAT SHOULD BE IN THE BLOCK CART END UP IN THE BLUE OR GREEN CART. VICE VERSA AND ALL THAT. IT'S REALLY IMPORTANT THAT WE ARE SOURCE SEPARATING CORRECTLY, ESPECIALLY AS 1383 IS ROLLING OUT. NEXT SLIDE. SO WHAT COUNCIL DID IN 2022, WE MET ALL FOUR OF THOSE ITEMS AND THEY ADOPTED A BASE RATE STRUCTURE THAT INCREASED OVER FIVE YEARS, 2022 TO 2026. THIS IS OUR FOURTH YEAR. UPHELD THE ANNUAL CPI ADJUSTMENTS ALLOWED BY THE FRANCHISE AGREEMENT. AND AUTHORIZE THE RETIREMENT OF THE 32 GALLON CART OVER THESE FIVE YEARS. SO AS PROPOSED. RATES WOULD BE EFFECTIVE JANUARY 1ST, 2025 WOULD INCLUDE A 2.76 CPI PERCENT CPI INCREASE APPLYING TO ALL OF THE CARDS EXCEPT FOR THE 32 GALLON CART. 32 GALLON CART WOULD HAVE AN EXTRA BOOST IN ORDER TO ALIGN ITS PRICE WITH THE 64 GALLON CART AS WE RETIRE THE 32 GALLON CART. THAT BOOST WOULD BE A 5.96% INCREASE, AND I WILL EXPLAIN HOW WE GOT TO THAT NUMBER ON THE VERY NEXT SLIDE. SO WHAT YOU SEE HERE ON THE LEFT WITH THE YELLOW HIGHLIGHTS IS THE RATE STRUCTURE THAT WAS APPROVED IN 2021, STARTING IN 2022. ON THE RIGHT IS THIS RATE STRUCTURE AS CPI HAS BEEN DETERMINED EACH YEAR. SO THEY'RE THE ACTUAL RATES. WHAT'S HIGHLIGHTED IN ORANGE IS WHAT'S PROPOSED FOR 2025. YOU'LL SEE THAT 2.76% CPI INCREASE FOR ALL SIZES EXCEPT FOR THE 32 GALLON PART. SO ESSENTIALLY, THE WAY YOU GET TO THE 5.96% INCREASE TO THE 32 GALLON CART IS BY CALCULATING THE DIFFERENCE BETWEEN THE EXPECTED CPI AND THE EXPERIENCED CPI. SO YOU'LL SEE THAT IF YOU TAKE 3.35%, THIS IS LINE SEVEN, WAS THE ANTICIPATED CPI IN THE APPROVED RATE STRUCTURE MINUS 2.76%, YOU HAVE THAT DIFFERENCE. IF YOU SUBTRACT THAT DIFFERENCE FROM THE ANTICIPATED CPI, ALSO ON LINE SEVEN FOR THE 32 GALLON CART AT 6.55%. MINUS THAT DIFFERENCE, YOU GET 5.96%. SO ESSENTIALLY, WE KNEW THAT THE 32 GALLON CART INCREASE HAD TO GROW. BUT THAT RATE IS BASICALLY THE DIFFERENCE BETWEEN EXPERIENCE AND EXPECTED CPI. ANY QUESTIONS ON HOW WE GOT TO THE PROPOSED RATES HERE? ALL RIGHT, SO IF WE GO TO THE NEXT SLIDE, WE EXPECT THAT NEXT YEAR THE PRICES WILL CONVERGE. YOU CAN SEE THAT THESE TWO GREEN LINES REPRESENTING THE 32 GALLON AND THE 64 GALLON COSTS SINCE 2020 SINCE WE PUT THIS FIVE-YEAR INCREASE IN PLACE. WE EXPECT THAT THEY'LL CONVERGE NEXT YEAR ALONG THE SAME FORMULA AND NEXT SLIDE. WE'VE GOT EVIDENCE THAT PEOPLE ARE ALREADY MAKING EFFORTS TO RIGHT SIZE BASED ON THE ENCOURAGEMENT FROM THE 22 GALLON CART SIZE. SO WE ALREADY HAD A CONVERGENCE IN 32 GALLON CUSTOMERS, NUMBER OF PEOPLE WITH 32 GALLON AND NUMBER OF CUSTOMERS WITH 64 GALLON. AND YOU CAN SEE THAT THE 32 GALLON IS CONTINUING THE TREND DOWN. AS WE EXPECTED IT WOULD. AND A REPORT FROM, I'M PUTTING MDR ON THE SPOT HERE, BUT ARE WE HEARING FROM DRIVERS THAT WE ARE GETTING LESS CART CONTAMINATION? ARE WE EXPERIENCING THAT YET? IS IT STILL TOO EARLY IN THE FIVE-YEAR, I DID NOT ASK YOU TO COMPARE THIS BEFOREHAND. SO IF YOU DON'T HAVE AN ANSWER WE ARE STARTING TO SEE LESS CONTAMINATION BECAUSE PEOPLE HAVE MORE ROOM IN THE PROPER CART WHERE THEY SHOULD BE PUTTING MATERIAL. WE RECENTLY IMPLEMENTED AI CAMERAS ON ALMOST ALL OF OUR TRUCKS AND WE'RE TESTING DIFFERENT SOFTWARE PACKAGES THAT ARE LOOKING AT THE CONTAMINATION AS IT'S COMING IN. SO WHILE THAT HAS NOT BEEN ROLLED OUT YET, WHAT WE'RE ULTIMATELY LOOKING TO DO IS HAVE SOMETHING THAT EDUCATES THE EACH HOMEOWNER. VIA TEXT MESSAGING BY THEIR ROUTE TO SHOW HOW THEIR CONTAMINATION IS GOING TO ACTUALLY COMPARE TO THEIR NEIGHBORS. ALMOST LIKE YOU SEE ON YOUR WATER BILL WITH YOUR USAGE AND EVERYTHING ELSE. SO THE CARD SIZING IS HEALTHY, BUT WE HOPE THE CARD SIZING COMBINED WITH USING TECHNOLOGY AND BEST PRACTICES WILL CONTINUE TO HELP WITH EDUCATION. EXCELLENT. AND IF WE GO TO THE NEXT SLIDE, WE WILL SEE THAT EVEN WITH THIS INCREASE, OUR AVERAGE MONTHLY RESIDENTIAL COST FOR COLLECTION IS STILL LOWER THAN THE BAY AREA AVERAGE. I PUT A RED ARROW THERE TO SHOW PITTSBURGH IN CASE THIS WASN'T BIG ENOUGH. JUST ADD TO THE COLORS THAT YOU SEE THERE. BUT WE'RE RIGHT IN THE MIDDLE, NINTH LOWEST OR EIGHTH HIGHEST OUT OF 17. SO NO CHANGE IN POSITIONING FROM WHERE WE'VE BEEN. EVERYBODY'S EXPERIENCING THESE INCREASES. I WILL STOP TO SEE IF THERE ARE QUESTIONS, BUT JUST SINCE THE RATE STRUCTURE WAS ALREADY APPROVED IN 2021, WE'RE NOT REQUESTING FEEDBACK NECESSARILY. THIS CPI INCREASE IS ALLOWED BY WHAT WAS APPROVED IN 21. NO QUESTION? OH, NO QUESTION. HE DOESN' YOUR LAST SLIDE REALLY WAS A QUESTION I HAD OVER SAYING IN TERMS OF THE REDUCED NUMBER OF FOLKS WITH THE 32 YEAH, SO APPRECIATE THAT. OF COURSE. AND IF YOU DO GET THE QUESTION, WE GET IT EVERY SO OFTEN, YOU KNOW. UNABLE TO PUSH A 64 GALLON CART OR I DON'T HAVE ROOM ON MY PROPERTY TO STORE IT. WE'VE HAD A COUPLE OF INSTANCES AND WE ARE YOU KNOW WHILE TAKING 32 GALLON CARTS OFF THE STREET AND NOT LETTING NEW CUSTOMERS SIGN UP FOR A 32 GALLON CART, THERE ARE EXTENUATING CIRCUMSTANCES WHERE THE 32 CART GALLON CART IS THE RIGHT CART FOR THAT PERSON. AND WE TAKE THAT ON A CASE-BY-CASE BASIS. MDRR GOES OUT. DEPENDING ON THE TYPE OF COMPLAINT, THEY ASSESS WHETHER OR NOT 32 IS ACTUALLY DOABLE AND WE GO FROM THERE. IT SHOULD BE NOTED THAT NO NEW STARTS SO ANY NEW CONSTRUCTION UNLESS THEY'VE PROVEN THAT YEP CANNOT HAVE A 32. SO THAT HAS BECOME WHAT WE CONSIDER A LEGACY SIZE THAT'S NOT AVAILABLE. AND YOU'RE STARTING TO SEE MORE AND MORE PEOPLE SHOOT THE BIGGER SITE BECAUSE OF THAT PRICE NO DOUBT. WHEREAS BEFORE THEY WERE ONLY MAKING THE DECISION BASED UPON PRICE SO IT IS WORKING. AND THEN WE STILL HAVE TO PHASE OUT AND LITERALLY ONCE AS THAT PRICING EQUALIZES. BRING PEOPLE A 64 GALLON CARD. AND UNLESS THEY REFUSE IT, THAT'S WHAT WOULD BE DONE. AND THAT WAS PART OF THE PRIOR APPROVAL. MOVING ON, CARISSA. THANK YOU, RHONDA. WE'LL TRANSFER OVER TO OUR CTS RATES. SO SIMPLY, MDRR HAS REQUESTED A 3.41% CPI INCREASE EFFECTIVE JANUARY 1ST, 2025. THIS IS ALLOWED BY THE EXCLUSIVE OPERATING AGREEMENT. AND THE CPI LOOKS DIFFERENT. THAN THE CPI REPORTED FOR RESIDENTIAL BECAUSE PER THE TWO SEPARATE AGREEMENTS ONE'S CALCULATED AUGUST TO AUGUST, ANOTHER IS CALCULATING OCTOBER TO OCTOBER. SO EVERY YEAR THESE CPIS DON'T LOOK THE SAME. I CALCULATED FOR THE SAME TIME SPANS, BUT STARTING AND ENDING IN DIFFERENT MONTHS. IF WE GO TO THE NEXT SLIDE, WHAT DOES THIS DO? HOW DOES THIS HELP US COMPARE TO OTHER RCTS RATES? SO, AND WHAT SAL SHARED WITH ME RECENTLY IS THE OTHER RCTS RATES ON THIS TABLE INCLUDE 2024 RATES. OURS IS THE ONLY 2025 RATE UP HERE PROPOSED 2025 RATE. SO IF NOBODY ELSE RECEIVES AN INCREASE THIS YEAR, WE ARE NINTH SEVENTH LOWEST OR FOURTH HIGHEST, EXCUSE ME, OUT OF THESE NINE FOR PERSPECTIVE HER PERSPECTIVE. LAST YEAR, WE WERE EIGHTH LOWEST OR FIFTH HIGHEST. SO IT MOVES US UP ONE SPOT, ASSUMING WE'RE THE ONLY RCTS TO RECEIVE INCREASES IN 2025. YOU WILL SEE ATTACHED IN YOUR MEMO IS THE FULL LIST OF THESE RATES. THAT THIS WOULD ACROSS ALL THE MATERIALS RECEIVED. AND THIS ITEM HERE, AS REQUIRED BY THE OPERATING AGREEMENT, DOES REQUIRE COUNCIL APPROVAL OF OUR SYSTEM ADJUSTMENTS. UNLESS WE HAVE ANY MAJOR QUESTIONS OR OBJECTIONS HERE, YOU'LL SEE THAT I'M CONSTANTLY IN THE VIDEO. THERE'S NO QUESTION SOMEWHERE THE QUESTIONS MIGHT BE FOR… REPRESENTED, AS FAR AS JUST THE CORRELATION BETWEEN THE MINIMUM FEE AND THE RATE PER TIME CAN YOU SHARE JUST A LITTLE BIT ABOUT THAT AND I'M GOING TO SHARE THAT FOR INQUIRE BECAUSE WE KNOW THIS HAS IMPACT IT'S WHAT KIND OF DEAL WITH THE LEGAL DUMPING AND, YOU KNOW, IN TERMS OF ANY BARRIERS WHERE FOLKS MAY FEEL LIKE, WELL, THE PRICE IS GOING TO THE TRANSFER STATION TO GET RID OF THIS LOAD HERE. IT'S HIGH, ESPECIALLY JUST INDIVIDUALS THAT MAY BE TRYING TO GET RID OF A MATTRESS OR A FEW ITEMS THAT ARE IN THE HOUSE. SO JUST IN TERMS OF IF THERE'S ANY THOUGHT AROUND HOW WE LOOK AT THAT MINIMUM FEE AND THEN ALSO THE RATE PER TIME ABSOLUTELY. AND THAT MINIMUM FEE IS THE $43.50. WHICH IS THE CURRENT PRICING SARAH, I DON'T KNOW IF THIS UH THIS WAS THE CURRENT ON THE RADIO SHEET. THAT MAY HAVE BEEN A TYPO IT SHOWS THE 4350 WOULD ACTUALLY GO UP TO 45. SO $45, COUNCIL MEMBER, IS WHAT THE THE MINIMUM CHARGE THAT A RESIDENT WOULD PAY IF THEY WERE CLEANING OUT THEIR GARAGE ON A WEEKEND. SO IF A WHOLE PICKUP TRUCK WHERE WE PUT IT. WHETHER YOU'RE A FORD FAN, A DODGE FAN, OR A CHEVY IMAGINE F1500 OR AN F-150 THAT IS FULLY ERODED. THAT'S THE MINIMUM CHARGE PROVIDING THERE'S NOT A SPECIAL ITEM AS PART OF THE LOAD THAT IS STILL, I MEAN, I KNOW THAT CAN BE A LOT FOR INDIVIDUALS TO PAY BUT THAT COST IS YOU KNOW THAT IS THE MINIMUM THAT WE'RE ABLE TO CHARGE TO STILL THEN COVER THE COST TO SEND THAT MATERIAL TO THE LANDFILL PERFORM DIVERSION UNLIKE A LOT OF OUR COMPETITION ALL THEY DO IS TAKE THAT MATERIAL AND SEND IT TO THE LANDFILL, ACTUALLY. IF YOU GO TO OUR FACILITY ON ANY GIVEN DAY. WHEN A HOMEOWNER COMES IN AND DUMPS WE PULL OUT THE WOOD IF IT COULD BE RECYCLED. WE PULL OUT METAL. WE PULL OUT LITERALLY ANYTHING THAT SENDING TO THE LANDFILL. SO OF COURSE, THAT'S GOING TO BE A LITTLE BIT MORE EXPENSIVE THEN IF ALL YOU DID WAS RECEIVE IT. PUSH IT AND SEND IT TO THE LANDFILL. SO ALTHOUGH $45, AGAIN, AS A MINIMUM CHARGE, WE FEEL IS REASONABLE. COMPARED TO AT LEAST OUR NEAREST COMPETITION, WHICH IS REPUBLIC'S FACILITY IN MARTINEZ. THEY PERFORM ZERO EXTRA DIVERSION WHERE WE AGAIN ARE THERE MANUALLY PULLING MATERIAL OUT AND ONLY SENDING WHAT WE NEED TO. BUT THE MAJORITY OF YOUR CONSTITUENTS, THE MAJORITY OF YOUR RESIDENTS. THAT'S THE MINIMUM CHARGE THAT THEY WOULD BE PAYING ON A WEEKEND. WELL, I'M SURE YOU DON'T. AND THEN WE DO TRY TO OFFER AMERICA'S RECYCLING, YOU KNOW, SPECIAL DAYS AND EVENTS FOR EASY WASTE AND THINGS LIKE THAT. AWESOME. THANK YOU. OKAY, MOVING ON TO ITEM NUMBER FIVE OR STAFF REPORTS FOR YOU? SEEING NONE, WE ARE RETURNING. GREAT WEEKEND. THANK YOU.
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