Direction on waste franchising also expected Tuesday
August
31, 2014
Chico
Enterprise-Record
By Ashley
Gebb
CHICO >> Concerns raised by the Butte County Grand Jury about the city
of Chico's finances are consistent with those of the City Council and
appreciated "in light of the challenges that the organization faces,"
Mayor Scott Gruendl writes in the mandatory response.
The exact detail to which the
City Council will agree with the 2013-14 Grand Jury's findings remains to be
seen. Councilors are expected to consider approval of the response Tuesday,
with options to choose from on each of the 15 findings and seven
recommendations. In his letter, the mayor also pledges a commitment to
organizational transparency and accurately reporting facts, and he says the
city will provide additional information and clarification if necessary.
"It is our mission to
accept the Grand Jury's report, reflect upon comments received and put into
place improvements to ensure efficient and effective governance," Gruendl
writes.
The Grand Jury report,
published in late June, states that while there was no evidence of illegal
wrongdoing or personal profiting from the city of Chico's financial management,
the City Council has known since 2007 it was running a deficit.
A follow-up to a prior Grand
Jury investigation, the report on Chico finances states the city's financial
crisis was caused by inflated salaries and benefits that clearly outpaced
revenues, fees charged by various enterprise funds that did not cover service
costs, enterprise accounts used inappropriately to balance the general fund as
revenues declined, and city administration failing to provide pertinent
information to council to make the necessary adjustments.
The 16 pages of potential
responses included staff responses and alternatives for councilors to consider.
They could also amend any response how they see fit.
Many of the proposed responses
agree with the grand jury's findings, but a few refute the findings or offer at
least partial disagreement. Objections are included for the following findings:
• The City Council failed in
its responsibility to oversee actions of the management team and allowed it to
frame its own agenda
• During 2008-2012, upper level
management failed to share complete and accurate information with council
members
• With respect to finances and
structural deficits, it appears the prior city manager abdicated his responsibility
and allowed the finance director to take charge
Another area of potential
disagreement is with the Grand Jury's recommendation that the City Council and
city manager work together to develop a plan to rehire lost staff when funds
are available instead of contracting out for services. The city has until Sept.
25 to submit its response.
Also Tuesday, the council is
expected consider options for waste franchising, which has been tabled for the
last two meetings. Richard Tagore-Erwin of R3 Consulting Group will ask for
direction on the terms, conditions and service options to include in the
franchise agreement negotiations.
The finance committee's
recommendation is to negotiate an exclusive franchise with Waste Management and
Recology based on two exclusive residential service zones based on a split of
current revenue base. The two companies would also be responsible for providing
street sweeping, leaf collection, collection from city buildings and illegal
dumping.
Commercial services would
remain in current open market competition between the two companies. The city
would set the maximum rates for both commercial and residential services. The
staff report states the fiscal impact of the agreements will be determined
during negotiations.
The council will also consider
introduction of a nondiscrimination ordinance and consider changes to council
procedures per the council procedures committee. And there will be a public
hearing regarding the proposed closure of a bike path at Sunrise and Ricky
courts.
The meeting will take place at
6:30 p.m. Tuesday in the Chico City Council Chambers, 421 Main St.
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