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CC - Minutes - 05-09-2023MINUTES OF THE CITY COUNCIL REGULAR MEETING MAY 9, 2023 CALL TO ORDER The regular meeting of the Rosemead City Council was called to order by Mayor Dang at 7:43 p.m., in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. PRESENT: Mayor Dang, and Council Members Armenta, Clark, and Low ABSENT: Mayor Pro Tem Ly PLEDGE OF ALLEGIANCE was led by Mayor Dang INVOCATION was led by Council Member Armenta STAFF PRESENT: City Manager Kim, City Attorney Richman, Assistant City Manager Bruckner, Director of Finance Chua, Interim Director of Community Development Wong, Director of Parks and Recreation Boecking, Director of Public Works Chung, Interim Chief of Police/Lieutenant Tiwari, and City Clerk Hernandez 1. PUBLIC COMMENT Mayor Dang opened the Public Comment period. Chuck Lyons. a Rosemead resident, briefly spoke in support of both Republic Services and city staff. He praised Republic Services for responsive service during large school events and positive day-to-day interactions with drivers, describing them as courteous and reliable, and expressing support for continued service. He also commended the City's Public Works Department for maintaining Rosemead Park despite heavy use, and acknowledged the Sheriff's Department for its support during major community events like the 4th of July parade. He closed by thanking both city employees and Republic Services staff and encouraging the City to continue its current level of service and community care. Mayor Dang thanked Mr. Lyons for those kind comments. There being no further speakers, Mayor Dang closed the Public Comment period. Mayor Dang stated since Mayor Pro Tem Ly could not attend tonight's Council meeting, I am going to read a text verbatim from him, "I just want to again emphasize and hopefully get expressed strongly to the Council that we have always honored a request from a colleague to table an item, one time courtesy, even in fiber city issues. I appreciate the support on this". That being said, Mayor Dang asserted that he would like to poll the Council for direction Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 1 of37 regarding Mayor Pro Tem Ly's request to table agenda Item No. 5A, which is a trash hauler contract and Item No. 6A, that is the discussion about work with the state lobbyists. City Attorney Richman clarified that there are two different requests here, which should be addressed separately. Mayor Dang started discussion on the request to table Item No. 5A to our next Council meeting or possibly even a special meeting. Council Member Clark opined I feel very strongly that we should not postpone this item because my understanding from our City Attorney is that Mayor Pro Tem Ly could have participated in tonight's meeting via Zoom. City Attorney Richman replied that I explained to you what the law was — that it allows for individuals to call in. Emphasized I've never said that Mayor Pro Tem Ly could do so; asserted that I specifically said "I don't know what Mayor Pro Tem Ly would do but this is what the law provides". Council Member Clark stated "Yes, I know". City Attorney Richman responded "Well, that's not what you said. Please be clear". Council Member Clark shared that she consulted the City Attorney regarding the 72 -hour notice requirement; she noted that remote participation is generally not permitted unless prior notice within 72 hours of a meeting has been given. However, the City Attorney indicated there may be exceptions for individuals employed by government agencies. Mrs. Clark ascertained which Mayor Pro Tem Ly is and the City Attorney didn't flatly say he could not. City Attorney Richman reiterated just to be clear, I did not speak to what Mayor Pro Tem Ly could do and I did not tell you that he said he could. I told you what the law provides. Council Member Clark noted I'm just saying that there is an exception that Mayor Pro Tem Ly potentially could have Zoomed in. City Attorney Richman responded that she does not know if he could or not as she did not have facts of the specific circumstances. Mrs. Richman clarified that she was only providing an explanation of what the law allows. Council Member Clark stated that, while the Council has previously continued items to a later meeting when they were not time -sensitive or controversial, this situation is different. She pointed out that Council only received notice at 11 o'clock which is only 31 hours in advance, after the meeting had already been publicly scheduled. Mrs. Clark expressed that whether Mayor Pro Tem Ly could participate or not, given the importance of the issue and prior postponements, that further delay would be unfair to those in attendance and stated her opposition to postponing the item again. She emphasized that residents and company representatives have taken the time to attend, some having adjusted their schedules with the expectation that the item would be heard as noticed. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 2 of 37 Mayor Dang clarified that this specific item has not been postponed multiple times. For Item No. 5A, a motion and second were made to proceed with one of the companies, but the motion failed. Council Member Clark replied "Yeah, I know". Council Member Armenta commented that it's called the "Roberts Rules of Order". Mayor Dang reiterated we didn't table this item. Council Member Clark responded I didn't say we tabled it. I'm just saying that this item has taken time. Council Member Armenta acknowledged that the situation is difficult and emphasized the Council's longstanding practice of fairness and transparency. She expressed disappointment; noting when Council Member Clark previously requested a postponement on the fiber Wi- Fi item—despite there being a full presentation, it being a controversial item and public attendance, her request was honored. Having supported similar requests from all Council Members during her tenure as Mayor, she believes she must do the same now. It's unfortunate that residents and company representatives are here tonight, but it's also important to be consistent in respecting colleagues' requests. Council Member Annenta said she's ready to move forward with the item, but she'll honor Mayor Pro Tem Ly's request in good faith, just as she has done in the past for other colleagues. She added that she will defer to the majority for the Council's final decision. Mayor Dang commented that he just received a notice that Mayor Pro Tem actually sent a message that he wished to be read by the City Clerk. City Clerk Hernandez read the following message from Mayor Pro Tem Ly addressed to the Council: "Good evening, colleagues. Unfortunately, I cannot make the Council meeting today due to work obligations. As such, I am asking that the Council honor my request to table Items 5A and 6A until all five members of the Council can be present to discuss and vote on these two important items. I understand and can value the high tension and importance of these two issues. I understand how we also want to wrap up these issues. I appreciate that. For these reasons, I also hope my colleagues understand and can appreciate the reason why I would want to be present for such a vote. Historically, we have always honored a request from one of our colleagues an opportunity to table an item one time, whether it was Council Member Clark needing to table in Athens Services as street sweeping 13 years ago or as recently as tabling Founders Park and the Community Gardens Management until Council Members can get the right speakers before the Council meeting. I ask for this consideration for this evening so that we may all be present to discuss these two important items. I believe that as colleagues who each represent the people of Rosemead, we should ensure all our voices are heard. I hope everyone understands that I take my obligation to Rosemead seriously in the past 14 years on this Council. I have made every effort to be at every meeting, even calling in on a deficient conference call system. There are less than a handful of times, besides my obligations as a soldier and officer to the Army, in which I have missed a meeting. I would be here tonight with all if I could. I appreciate everyone's time on Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 3 of 37 this. I appreciate my colleagues' commitment to the City of Rosemead, and I hope you see my commitment to making the best decision for our community. May God bless you, the City of Rosemead and the great Country of the United States". Council Member Low expressed this is a tough one. While I somewhat agree with Council Member Armenta that the Council has traditionally honored requests from colleagues to postpone items, it is challenging to do so tonight given the number of residents who have taken the time to be here and speak on this matter. I respect Mayor Pro Tem Ly's interest in the item and regret that he is unable to attend; however, I must weigh that request against the presence and commitment of those in attendance. At this time, I believe it is appropriate to proceed with the item this evening, despite the inconsistency with past practice. Mayor Dang stated that this is a very difficult decision, noting the significant time and effort invested in tonight's meeting. He expressed a desire to respect the Mayor Pro Tern's wishes as well as standard precedence. Suggested a potential compromise: to table the item and bring it back for consideration quickly. Council Member Low inquired what "quickly" means, like within a week? Council Member Clark responded that while the Council has honored requests to postpone items in the past, those instances typically occurred at the end of long meetings when Council was fatigued, there was little or no public attendance, and the item was agreed to be brought back. She noted that in her many years on the Council, she has never postponed an item when members of the public were present and waiting to speak. Mrs. Clark emphasized that this situation is apples to oranges, given the significant number of residents present and the many who submitted comments in advance. She also expressed concern that the postponement request was made late and without prior polling of Council Members, which she said is the standard practice. She noted that no availability check was conducted, including for the proposed date of next Tuesday, for which she already has a prior commitment. She added that, in past cases, the Council has first coordinated schedules before confirming any rescheduled meeting date. Council Member Clark concluded that this situation is not comparable to prior postponements and cautioned against treating it as precedent. She respectfully requested that the Council proceed with the item, given the level of public interest and participation, while noting she would be amenable to deferring Item 6A on lobbyists if necessary, as it appears to have less public interest. Mayor Dang responded that he respectfully disagrees, noting that Council precedent does not typically take room attendance into account when deciding whether to table an item. He added that he agrees the Council should ensure all members have input on how to proceed, which is what is occurring tonight, and reiterated his request to conduct a poll. Council Member Clark asked if you can name one time when we have had a room full of people and we postponed an item. Mayor Dang opined I think that is a personal comment; reiterated I don't recall it's written in any city statute that we have to take attendance before we decide to table an item. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 4 of 37 Council Member Armenta asked the City Attorney whether in the event of a 2-2 vote resulting in a failed motion, the Council would be required to proceed with the trash haul item. City Attorney Richman affirmed that is correct as the item is on the agenda Council Member Low reiterated she really wants to value the time of the people here tonight. Stated if we do consider postponing this item, then the item must be brought back in a very short period of time because I don't think it's fair to drag it out. Also asked if we do table the item, can we at least allow anyone here now who wants to speak tonight to do so; this way if they are not able to come back for the next meeting they will at least have the opportunity to make their comments heard tonight. Mayor Dang asked the City Attorney for clarification on how a tied vote would be handled. The City Attorney confirmed that if there is a 2-2 tie, the motion would fail, since the Mayor Pro Tem was absent and could not vote. Mayor Dang noted that if the vote ends in a tie, the Council would still proceed with the item because it remains properly agendized, and no additional action would be required to continue discussion or move forward. Council Member Low said she was still undecided and weighing her options. Council Member Clark noted scheduling constraints, explaining that upcoming meetings were limited due to cancellations and conflicts, making it difficult to simply postpone the item without further delays. Mayor Dang responded to a question about whether public speakers should be heard at a postponed meeting. He preferred that if the item were delayed, all public comment should occur at the later meeting so Council members could hear everything together in real time. He also noted scheduling challenges and said the earliest the Mayor Pro Tem could attend would be May 30, which was too late for some Council members. Council Member Low then concluded that, given the uncertainty of further delays and the importance of hearing from residents present that evening, she would support proceeding with the item rather than postponing it again. Mayor Dang commented noted, so agenda item 5A will be heard tonight. Mayor Dang stated moving on to Mayor Pro Tem Ly's second request; asked Council what are their thoughts on postponing Item 6A for lobbying services. Council Member Clark opined she is okay with postponing that. Council Member Armenta expressed support for Mayor Pro Tem Ly's request to table the item. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 5 of 37 Council Member Low shared she is fine with tabling that to another date. ACTION: Moved by Mayor Dang and seconded by Council Member Low to table Item 6A to a future meeting. Motion was carried out by unanimous vote: AYES: Armenta, Clark, Dang, and Low NOES: None ABSENT: Ly 2. PRESENTATIONS A. Proclamation Declaring May 2023 as "Asian American and Pacific Islander Heritage Month" in the City of Rosemead The City Clerk introduced a proclamation recognizing May as "Asian Pacific American Heritage Month", highlighting the historical contributions of Asian American and Pacific Islander communities in the United States, including early immigration, labor contributions such as the Transcontinental Railroad, and broader cultural impact. Mayor Dang emphasized the importance of recognizing AAPI contributions and appreciated the historical context shared. Council Member Clark expressed pride in honoring the city's large Asian population and supported the proclamation. Council Member Armenta noted the importance of embracing and recognizing the diverse cultures represented in Rosemead. Council Member Low also celebrated the recognition, highlighting the significance of AAPI contributions to the city and community. B. Proclamation Declaring May 2023 as "National Water Safety Month" in the City of Rosemead Director of Parks and Recreation Director Boecking presented a proclamation recognizing May as "National Water Safety Month", focused on drowning prevention and educating the public about water safety. He highlighted that: drowning is the leading cause of accidental death for children ages 1-4; it remains a top cause of injury -related death through adulthood. The city will promote awareness through swim lesson pledges, social media outreach, and a public water safety event at the farmers market on May 22. Acknowledged Aquatics staff and lifeguards for their work and dedication. Mayor Dang thanked staff and emphasized the importance of water safety awareness. Council Member Clark shared a personal story about her son helping rescue a child from a pool and performing CPR. Council Member Armenta. emphasized the importance of making sure that children have the skills to be able to swim and to really save their lives. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 6 of37 Council Member Low thanked the Aquatics team and praised their work. Director of Parks and Recreation Boecking also encouraged community members to apply for lifeguard positions and noted training and certification support is available. C. Proclamation Declaring the Week of May 21 through May 27, 2023, as "Public Works Week" in the City of Rosemead Assistant City Manager Bruckner presented remarks on behalf of the Public Works Department for Public Works Week, noting that staff had intended to attend the proclamation but had to leave early due to their 5:30 a.m. start time. Mayor Dang praised Public Works as a highly dedicated team that keeps the city clean and well-maintained. Council Member Clark expressed we love our staff and thanked them for their hard work. Council Member Armenia shared a personal example of Public Works staff responding on a holiday to remove graffiti and emphasized their strong commitment and "family -like" role in the community. D. Recognition of City of Rosemead's 2023 Outstanding Older American Director of Parks and Recreation Boecking announced Hang Chi Feng, a highly active participant at the Garvey Senior Center was selected for the City of Rosemead's 2023 Outstanding Older American Award. He was recognized for: regular participation in the senior lunch program; volunteer support and welcoming attitude; helping others by translating and assisting those with communication barriers; providing companionship to seniors who may be alone; and bringing a consistently positive and uplifting presence to the center. Mayor Dang praised his youthful positive energy and impact on others. Council Member Clark commended his service and outreach to residents. Council Member Armenta offered thanks and greeted him in Chinese. Council Member Low also thanked him for his contributions to the senior community. E. Recognition of Southern CA Edison Scholarship Recipient David Ceballos Southern California Edison (SCE) representatives introduced and recognized David Sabayos, a scholarship recipient of the Edison Scholars Program. David is a senior at Don Bosco Tech (Bosco Tech), he plans to attend USC; he will receive a $50,000 scholarship (paid over four years). He is studying biomedical engineering with a Rosemead City Council Regular Meeting Minutes of May 9, 1023 Page 7 of 37 minor in computer science. SCE highlighted that the Edison Scholars program awards scholarships annually to high -achieving students across its service territory and has supported hundreds of students since 2006. SCE also introduced a new government relations representative, Marisa Castro-Salvati, who will be replacing Sal Ramirez in working with the City of Rosemead. Mayor Dang congratulated David and wished him luck in his engineering path and future endeavors. Council Member Clark shared a personal connection, noting her daughter studied biomedical engineering and is now a physician. Council Member Armenta congratulated David and acknowledged his family, emphasizing the importance of support systems. Council Member Low also congratulated him and noted her own background in computer science. 3. PUBLIC HEARING A. Public Hearing and Approval of The FY 2023-2024 Annual Action Plan for the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs The U.S. Department of Housing and Urban Development (HUD) provides funding to states, counties, and cities in the form of Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds. The City of Rosemead is required to prepare and submit an Annual Action Plan to HUD which serves to update and delineate efforts in meeting the priorities established in the five-year Consolidated Plan. The Annual Action Plan is seen as an opportunity to reassess the City's housing needs and priorities, as well as its programs and resources in a manner that will best meet the affordable housing and community development challenges. The City's entitlement allocation for FY 2023-24 is $668,149 in CDBG funding and $300,862 in HOME funds. As a recipient of CDBG funds, the City has also previously received Community Development Block Grant Coronavirus (CDBG- CV) funds with a current balance of $468,715. Recommendation: That the City Council take the following actions: 1. Conduct a public hearing and receive public testimony on the FY 2023-24 Annual Action Plan; 2. Approve the FY 2023-24 Annual Action Plan, including CDBG and HOME funding recommendations, and authorize the submittal of the Annual Action Plan to HUD. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 8 of 37 3. Authorize the City Manager to execute all appropriate and necessary documents to receive funding and implement approved use and make necessary budget adjustments based on HUD's final allocation amount; and 4. Authorize the City Manager to execute sub -recipient agreements with the non-profit organizations receiving CDBG, HOME, CDBG-CV allocations in the Annual Action Plan. Charlotte Cabeza, Management Analyst, presented a public hearing item seeking approval of the FY 2023-2024 Annual Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program. The plan reassesses the City's housing needs, priorities, and resources to better address affordable housing and community development challenges. For FY 2023-2024, the City's allocation includes $668,149 in CDBG funds, $300,862 in HOME funds, and a remaining balance of $468,716 in CDBG-CV (coronavirus) funds. CDBG funds are proposed as follows: $133,629 (20%) for planning and administration; $144,631 for housing programs such as Handy Worker and emergency grants; $289,667 for renovations at the Garvey Community Center; and $100,200 (151/o) for public service programs, including the Housing Rights Center, Senior Nutrition Program, Summer Youth Employment, and Family Promise. HOME funds will be allocated with $30,086 (10%) for administration, $225,647 for housing programs, and $45,129 (15%) reserved for Community Housing Development Organization (CHDO) activities. CDBG-CV funds will be distributed with $100,000 for planning and administration, $368,716 for economic development, and $100,000 supporting public service agencies, including the Asian Youth Center and Wealth by Health. Staff recommends that the City Council: (1) conduct a public hearing and receive testimony; (2) approve the FY 2023-2024 Annual Action Plan and authorize its submission to HUD; (3) authorize the City Manager to execute all necessary documents, implement approved programs, and adjust the budget based on final HUD allocations; and (4) authorize execution of subrecipient agreements with nonprofit organizations receiving CDBG, HOME, or CDBG-CV funds. There being no comments, Mayor Dang opened and closed the Public Comment period. The Council thanked staff for their efforts in ensuring funds are allocated to appropriate agencies. Mayor Dang expressed appreciation for the inclusion of the Asian Youth Center and Wealth by Health in the funding allocations, noting both organizations' meaningful impact on the community. The Asian Youth Center provides vital support for at -risk youth, while Wealth by Health offers free medical, dental, and vision services without cost to residents. The Mayor added that this funding will greatly support their nonprofit efforts and thanked staff for their work. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 9 of 37 ACTION: Moved by Council Member Armenta and seconded by Council Member Low to take the following action: Approve the FY 2023-24 Annual Action Plan, including CDBG and HOME funding recommendations, and authorize the submittal of the Annual Action Plan to HUD. 2. Authorize the City Manager to execute all appropriate and necessary documents to receive funding and implement approved use and make necessary budget adjustments based on HUD's final allocation amount; and Authorize the City Manager to execute sub -recipient agreements with the non-profit organizations receiving CDBG, HOME, CDBG-CV allocations in the Annual Action Plan. Motion was carried out by unanimous vote: AYES: Armenta, Clark, Dang, and Low NOES: None ABSENT: Ly 5. CONSENT CALENDAR ACTION: Moved by Council Member Clark and seconded by Council Member Armenta to approve Consent Calendar Items A through G. The motion was carried out by the following vote AYES: Armenta, Clark, Dang, and Low NOES: None ABSENT: Ly A. Claims and Demands • Resolution No. 2023-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF $2,132,036.43 CHECKS NUMBERED 113812 THROUGH NUMBER 113910, DRAFTS NUMBERED 6365 THROUGH NUMBER 6407 AND EFT NUMBERED 51614 THROUGH NUMBER 51646 INCLUSIVELY Recommendation: Adopt Resolution No. 2023-25. B. Minutes Recommendation: That the City Council approve the regular meeting minutes of November 8, 2022. C. Consideration to Cancel the May 23, 2023, City Council Meeting The Mayor and two Council Members will be attending the International Council of Shopping Centers (ICSC) in Las Vegas, Nevada, from May 21 to 23, 2023. The next regular City Council meeting is scheduled for May 23`d, the same day the Mayor and Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 10 of 37 two Council Members are due back from the conference. Since most Council Members will be traveling that day, the City Council will consider the cancellation of the May 23, 2023, City Council meeting due to lack of quorum. Recommendation: That the City Council cancel the May 23, 2023, City Council meeting due to lack of quorum. D. Second Reading and Adoption of Ordinance No. 1015 - Amending Sections 2.35.020 and 2.35.040 of the Rosemead Municipal Code Relating to the Public Safety Commission On April 25, 2023, the City Council introduced for first reading, Ordinance No. 1015, to amend the Municipal Code relating to the membership and corresponding terms of members appointed to the Rosemead Public Safety Commission. Ordinance No. 1015 amends the number of appointed members from five up to seven, consisting of four residents and three members of the business community. Recommendation: That the City Council approve the second reading and adopt, by title only, Ordinance No. 1015, entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING SECTIONS 2.35.020 AND 2.35.040 TO CHAPTER 2.35 TO TITLE 2 OF THE ROSEMEAD MUNICIPAL CODE TO INCREASE THE NUMBER OF MEMBERS AND ASSOCIATED TERMS OF MEMBERS APPOINTED TO THE ROSEMEAD PUBLIC SAFETY COMMISSION E. Award of Contract to Schoeppner Shows Carnival for Services at the Annual July 4a' Event The Parks and Recreation Department is seeking the City Council to approve a contract with Schoeppner Shows Carnival. The contract is to provide carnival rides, games, and services for the Annual July 4th Event at Rosemead Park. As part of the Proposed Fiscal Year 2023-24 budget, $231,500 has been requested for community special events, $120,000 is allocated to the July 4th Event. Recommendation: That the City Council authorize the City Manager to approve an agreement with Schoeppner Shows Carnival in an amount not -to -exceed $50,000. F. Professional Services Agreement with Lance, Soll & Lunghard, LLP for Auditing Services A competitive bid process was conducted to find a certified public accounting (CPA) firm for professional auditing services. The City received three (3) qualified companies that submitted proposals. Through an analysis of the proposals, a firm has been selected for recommendation to the City Council. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 11 of 37 Recommendation: That the City Council take the following actions: 1. Approve the firm of Lance, Soll & Lunghard, LLP as the City auditor; 2. Approve a three-year contract with two additional one-year extensions; and 3. Authorize the City Manager to execute the contract. G. Reimbursement Agreement with the City of Monterey Park for the Construction of New Avenue Rehabilitation Project The City of Monterey Park is planning to rehabilitate New Avenue alongside the border of City of Rosemead, between East Newmark Avenue and Garvey Avenue. New Avenue is a shared roadway at the centerline between the two cities. City of Rosemead staff coordinated with Monterey Park staff, and proposes to include City of Rosemead part of the roadway as part of the proposed improvements, for consistency. A reimbursement agreement with City of Monterey Park is prepared for the proposed improvements for Council's consideration. The project consists of resurfacing asphalt concrete roadways, curb & gutter, driveway approach repairs, manhole adjustments and striping. Recommendation: That the City Council take the following actions: 1. Authorize the City Manager to execute a reimbursement agreement with City of Monterey Park for the construction of New Avenue Rehabilitation; and 2. Authorize the City Manager to execute any amendment to the reimbursement agreement, provided that any increase in the City's contribution for the improvements is consistent with the executed agreement. 5. MATTERS FROM CITY MANAGER & STAFF A. Integrated Solid Waste Handling Services Procurement — Best and Final Offer Proposal Results, Selection of Contractor and Award of Franchise Agreement The City's exclusive franchise agreement for comprehensive refuse services with Consolidated Disposal Services (dba Republic Services) is set to expire on July 31, 2023. At the September 13, 2022, City Council Meeting, the City Council awarded a contract for Solid Waste Consulting Services to R3 Consulting Group, Inc (R3) to perform an assessment of the City's current solid waste programs and assist with the procurement of a new integrated solid waste handling agreement. Staff and R3 collaborated to create a Request for Proposals (RFP) document, create a draft Integrated Solid Waste Handling Agreement, and met with the City Council on November 8, 2022, for a solid waste procurement workshop. At the workshop, the Council provided feedback on the RFP process, timeline, and desired services and directed staff to proceed to issue the RFP for the City's integrated solid waste handling agreement. The RFP document was released on November 17, 2022, and on January 26, 2023, the City received five (5) proposals. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 12 of 37 At the April 11, 2023, City Council meeting, the City Council directed staff to request for Best and Final Offers (BAFOs) from the top two proposers, Republic Services and Valley Vista Services. Staff met with each proposer on April 18, 2023, to discuss the request for BAFOs and provided any necessary clarifications. A formal request letter for BAFOs was sent to the proposers on April 19, 2023, and on April 27, 2023, the City received BAFO proposals from Republic and Valley Vista Services. Recommendation: That the City Council take the following actions: Find the proposed action is categorically exempt under the California Environmental Quality Act (CEQA) Guidelines in accordance with Section 15061(b)(3) 2. Provide direction on the inclusion of the SB 1383 Fee in the service rates. 3. Award an exclusive Franchise Agreement for solid waste handling services, with a ten-year term, to one of the two finalists and adopt Resolution No. 2023-27, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA APPROVING THE FRANCHISE AGREEMENT BETWEEN THE CITY AND FOR THE COLLECTION AND TRANSPORTATION OF SOLID WASTE, RECYCLABLE MATERIALS, ORGANIC WASTE, AND CONSTRUCTION AND DEMOLITION DEBRIS AND OTHER SPECIFIED SERVICES. 4. Authorize the City Manager, in coordination with the City Attorney's Office, to make minor changes to the Franchise Agreement to correct any irregularities, typographical errors, or to make minor operational changes, and authorize the City Manager to execute the final Franchise Agreement on behalf of the City; and 5. Direct the City Manager to set a public hearing upon the Service Rates, Franchise Fee, and other City Fee proposed in the Franchise Agreement and to prepare and mail the prescribed notice as required under Section 6 of Article XIII.D of the California Constitution. Mayor Dang stated, for transparency, that he was invited to and attended a news gathering with Asian media on Friday. He noted that Dave Perez of Valley Vista, who was present at the meeting, also participated as a guest speaker. The Mayor clarified that he delivered a brief, five-minute speech on affordable housing and left immediately afterward, and did not hear any other presentations or discussions. He added that, although a group photo was taken with reporters, he wanted to publicly note his limited participation. City Manager Kim shared that our consultant, R3 Consultant will present this item. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 13 of37 Carrie Baxter, Senior Managine Consultant with the R3 Consultant Group, presented an update on the City of Rosemead's solid waste and recycling franchise agreement, which is set to expire at the end of July. Following City Council direction, staff and R3 issued a request for proposals in November and received five submissions. After further review, the City requested best and final offers from Republic Services and Valley Vista Services, which were submitted in late April. The City outlined key requirements for a new 10 -year agreement, including removal of street sweeping services, quarterly franchise fees, cost recovery measures, and no impact to customer rates beyond capped annual adjustments of up to 4% beginning July 1, 2024. Service expectations included new carts and bins, fleet upgrades, use of nearby processing facilities, food waste pails, compost bin distribution, community programs, and dedicated local customer service support. Both Republic Services and Valley Vista met many of these requirements, including compost programs, local facilities, and community outreach. However, Valley Vista proposed full replacement of all carts and bins and a fully new fleet by January 2024, while Republic proposed partial fleet replacement and refurbishing existing bins. Valley Vista also committed to adopting electric vehicles if required without raising rates, while Republic indicated costs would be revisited if regulations change. Both companies offered community benefits such as cleanup events, educational outreach, scholarships, and service support. Republic proposed $20,000 annually in community contributions, while Valley Vista offered $13,500 along with additional programs like recycling rewards and event sponsorships. Financially, both proposals included options with or without a $265,000 annual payment to the City to cover SB 1383 compliance costs. Residential rates between the two were comparable, with Valley Vista's option allowing current rates to remain unchanged through July 2024 appearing most favorable. Commercial rates were also competitive, with bundled services designed to simplify compliance for businesses. R3 determined that projected franchise fee revenues would align with the City's recoverable costs, including administration, infrastructure impacts, and regulatory compliance. If approved, a Proposition 218 notice will be sent to ratepayers, followed by a public hearing to meet the timeline for an August 1 implementation. Staff recommended that the City Council: determine the project is exempt under CEQA; provide direction on SB 1383 -related fees; award a 10 -year franchise agreement; authorize the City Manager to finalize and execute the agreement; and initiate the required public hearing and notification process. Mayor Dang asked his colleagues if anyone had questions for our consultant before I open Public Comment. Council Member Armenta noted that, as shown on slide 12, regardless of which hauler is awarded the contract, the proposed rates will remain lower than the current pricing. She emphasized this point for the benefit of those watching from home. Consultant Baxter responded absolutely. Council Member Low asked whether, if no action is taken and the contract expires, a business with three cubic yards of trash service would be required to pay $342.45 and sought confirmation of that amount. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 14 of 37 Consultant Baxter responded that this is correct if no action is taken. She further emphasized that, as of July 31, 2023, there would be no collection services in place. Council Member Clark rephrased the question, asking whether, even if the contracts were not set to end in August, the City would still be required to comply with providing 96 -gallon recycling carts and 32 -gallon organic waste containers. She noted that, in that case, businesses would still be subject to an increased service cost of $342.45. Ms. Baxter replied that is correct. Council Member Clark, referring to the Staff Report, stated that it requests Council direction on the inclusion of the SB 1383 fee in the service rates and asked about the origin of that requirement, specifically whether it was mandated by CalRecycle. Consultant Baxter explained that CalRecycle requires compliance with various regulations under SB 1383. She noted that, because the waste hauler cannot provide all required services, City staff would need to perform additional work, necessitating increased staffing. She stated that this need is the basis for the estimated annual cost of $265,000. Council Member Clark referenced information from Valley Vista indicating that the three -cubic -yard weekly rate would remain at the current 2017-71 rate, while other rates would be adjusted to cover SB 1383 costs totaling approximately $260,000 annually, to be paid in quarterly installments of $66,250. She asked whether this meant rates would be higher than those shown in the chart due to the inclusion of these fees. Consultant Baxter clarified that the chart did not reflect every rate and was simplified for presentation purposes. She explained that while some larger container rates were increased to account for SB 1383 costs, the three -cubic -yard container—being the most commonly used was shown as lower in comparison. She added that, for example, the two -cubic -yard rate increased relative to earlier proposals, while the three -cubic -yard rate decreased. Council Member Clark then asked whether companies would be given an opportunity to speak regarding their proposals or any potential changes. Consultant Baxter responded that vendors had already been given an opportunity to revise their proposals through the best and final offer process but noted that it would be up to the Council to allow further input. Mayor Dang added that a public comment period would follow. Mayor Dang opened the Public Comment period and noted that, due to the number of electronic submissions received, City Clerk Hernandez and City Attorney Richman would alternate in reading the comments. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 15 of 37 The following public comment was received via email from Cely Montez, resident: "Dear members of the Rosemead City Council, It was brought to my attention by several neighbors that the city Council is considering a move to a new waste hauler. We are all surprised and bothered by this consideration! As far as we are all concerned, Republic Services has performed well for many years in Rosemead, and there is no logical explanation as to why they would be removed. Their customer service is top-notch, including some of the drivers whose faces we have become familiar with for many years. They are present at many, if not all major city functions, and represent Rosemead well. I respectfully ask you to leave our waste services with Republic Services. We don't need or want the transition! We appreciate your kind consideration. Respectfully, Cely Montes" The following public comment was received via email from Jacob Valencia, resident: "Dear Rosemead Council Members: Many of our neighbors and myself were concerned and disappointed to hear that our current trash provider, Services, could soon be gone from Rosemead after so many years in place. We are frustrated because there is no reason to subject your residents to a transition, when there is nothing wrong with the current services. I did a little research and found that there are no major benefits to anyone in Rosemead by changing providers. I am having a very difficult time understanding why this would even be considered. I humbly ask that you keep Republic Services in place and not put your residents through any inconvenience or aggravation. Thank you in advance for your time, and for your work for the city. Jacob Valencia" The following public comment was received via email from Mary and Olga Perez, resident: "Dear Mayor and City Council, I am in support of keeping Republic Services and our trash contractor. We have lived in the City for many years and have never encountered any issues. Please consider keeping Republic Services. Thank you, Mary and Olga Perez" The following public comment was received via email from Jack Terzian, resident: "To the Honorable members of the Rosemead City Council, My family and I, including my senior parents, respectfully ask that you keep the current trash hauler, Republic Services in place. There are no pros with any other vendors that significantly outweigh the benefits of Republic Services, none. As longtime residents that have supported all of you in the past, we ask that you do not force us into an unneeded transition. Such a transition would be a waste of time, and energy, which there is no reasonable explanation for. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 16 of 37 Lastly, I hope that this decision is not fueled by any other factors aside from the best interests of Rosemead. Thank you for listening, and for doing what's right for our city of Rosemead. Sincerely, Jack Terzian" The following public comment was received via email from Brian Canseco, resident: "Honorable Mayor Sean Dang and Honorable Council Members Ly, Armenta, Low, and Clark: As a Rosemead High School grad, I write to you tonight to show my family's strong support for our current trash hauler Republic Services who has been a great provider and truly part of the community for so many years. Although we do appreciate the council's efforts to be fair and transparent in requesting options and proposals, after following this issue for several months and reviewing the recent results of the proposals, it is obvious that Republic Services should remain in place. There are no major reasons to support a change in service providers at this point. Perhaps some businesses could for instance save a few dollars with the new hauler, but Rosemead residents and business owners should not have to endure any type of transition! They have been reliable and professional. I know that I speak for many residents and families when I say that there is no NEED for any unnecessary change. I mentioned it to friends and even their parents were asking "why are they going to change them if they are good?" Please leave things as they are and focus the attention on more important issues in Rosemead that do need immediate attention. Sincerely, Brian C" The following public comment was received via phone from Bic Thai on behalf of Sunny Cal ADHC: "Good Evening, Sunny Cal ADHC, located at 8450 Valley Blvd, Rosemead, CA 91770 would like to continue to support Republic Services as our city's hauler for waste. Attached for your review is a Letter of Support. Thank you, Bic Thai" City Clerk Hernandez noted that Bic Thai's letter of support will be entered into the record. The following public comment was received via phone from Ana Bedov. resident: "Good Evening, Expressed support for Republic Services to continue to be the City's waste hauler provider. I have lived in Rosemead for 60 years and are satisfied with their services. Thank you, Ana Bedoy" The following public comment was received via phone from Martha Wagner, resident: Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 17 of 37 "Good Evening, I have been a Rosemead resident for 81 years. I would like to express my support for our current waste hauler Republic Services. Thank you. Thank you, Martha Wagner" The following public comment was received via email from Pei Perez, resident: "Dear Rosemead Council, Unfortunately, I am unable to make the Council meeting today. However, I would like to take this time to express on the topic of keeping Republic Service in our city. I have been a Rosemead resident for about 30 years. First living with my parents as a child to now owning my own home in the City of Rosemead. I haven't had issues with this trash service. Their fees are decent, and the workers are very friendly. On hot days my youngest daughter (8) likes to put cold/frozen water bottles and wait for the trash workers to drive by so she can bring them something refreshing. She sees how hard they work, and she knows they care. This is coming from an 8 -year-old. As her mom I can feel the warmth that they are giving her. I had other service companies before, and nothing compares to Republic Service. They are very nice, friendly and helpful. I understand that there was a bid and that it is down to two company for our city. But I don't feel we should always go with the lowest bidder because who know if they can handle our big city in the end. While remodeling my home I learned that lowest isn't the best. They try to cut corners or not able to provide the same quality performance and someone in the middle. We have had Republic service in this city for longer than I have been here. That's says a lot about this company. As a resident I want Republic Service to stay! Sincerely, Pei Perez" The following public comment was received via email from Ray Jan, CEO Rosemead Chamber of Commerce: "Honorable Mayor Dang, Mayor Pro Tem Ly, Council Member Armenta, Council Member Clark, and Council Member Low: My name is Ray Jan, I am writing to share my experience in working with Republic Services for the past 6 years. As Republic Services office mate, I have seen their local representatives provide residents with professional and friendly service, they helped with billing and new account setup questions. Their staff is bilingual, which is very helpful to our demographics, Republic Services also has a real-time interpreter hotline that helps customers with language barriers. Besides customers coming for service questions, I have also seen residents come to the office pick up recycle contest awards, ask for Republic's Rosemead Scholarship questions, and make book donations. Republic Services truly are committed to the City and residents with various activities to give back. From the business account side, Republic Services provides problem -solving solutions in a timely manner, they are active in Chamber events to meet the business community, they offer recycling workshops to help customers understand the current update. I am confident that Republic Services will continue to service the business accounts with their best interests in mind and is a partner we can count on. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 18 of 37 Thank you for your consideration. Respectfully, Ray Jan" The following public comment was received via phone from Steve A. Caceres, Director of Facilities Services, IKEA: "Honorable Mayor Dang, and Rosemead Councilmembers: I have been a resident of the City of Rosemead for nearly 14 years, and love my city. I not only appreciate the services provided by the city, but I'm also very satisfied with them all. We currently have a trash provider, Republic Services, who has been a part of the city for longer than I have been here. They have provided fair rates, quality service, and quick resolution to issues as they come up for my family throughout the city. There are a number of us. Today I ask of you as your constituent to promptly make a decision to keep Republic Services in place, as my family and I do not want to be inconvenienced by the transition to a new provider. Moving to a new company would be completely unnecessary, and may show special interests by certain members of the city Council. I trust and expect that you will make the right decision and keep Republic Services in place. They have been a solid provider and always present throughout the community. Thank You, Steve A. Caceres Director of Facilities Services, IKEA" The following public comment was received via email from William Duong: "To Rosemead City Council: Our family owns commercial buildings on both Valley Blvd and Garvey. At Garvey Garden Plaza, 8408 Garvey Ave, we have had constant issues with our trash service with Republic. At this property, the Republic trash truck enters and travels about 180 ft over 2 speed bumps. Then it empties 4 trash bins. The sounds of the bins being emptied disturbs our residents. And when the trash truck is gone, there will be liquids and stains on our driveway. To solve this problem, I requested a scout truck to come pick up our bins and place them on the street. And I was told more than once that Republic does not use scout trucks. However, I see them on the streets of Rosemead at other locations and even see one used for our other building on 8728 Valley Blvd. We have resorted to asking the manager to physically move the trash bins to the street to minimize the disturbance to our residents. Earlier this year, we needed to change the pickup schedule -- all 4 bins to be picked up every week. I signed the same service order document multiple times in February. Even after these signings, my requested changes did not take place. I had to call in again in early March before the new schedule took place. Ultimately my change request took 4 weeks to take effect. At this point, I would welcome a change in providers considering the current service I have been receiving. Please give Valley Vista greater consideration for the contract. William Duong" Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 19 of 37 The following public comment was received via email from Valerie Gomez. CEO and Katherine Konn. President of the Board of Directors of YMCA West San Gabriel Valley: "Dear City of Rosemead Mayor and City Council Members, My name is Valarie Gomez, and I am the CEO of the YMCA of West San Gabriel Valley, located in Alhambra. I am writing this letter along with Katherine Kopp, President of the Board of Directors of our YMCA. Together, on behalf of the YMCA of West San Gabriel Valley, we want to express our support for Republic Services. Republic Services has been a trusted partner with the YMCA for many, many years. During the pandemic, for example, their financial support allowed us to purchase tables and chairs to host Distance Learning. We serviced children from Alhambra, Rosemead, San Gabriel, South Pasadena and several other cities, providing them a safe place to attend their Zoom classes while their parents, who were mostly first responders, went to work. Republic Services also served alongside of the YMCA for several years as we partnered with the Tzu Chi Foundation for monthly food distributions. People from all over the West San Gabriel Valley - including citizens from Rosemead - came to receive free food for their families. The YMCA has also used financial donations from Republic Services to purchase YMCA memberships for homeless families that come to our facility. With Republic Services' support we are able to protect the dignity of these families by providing them with a membership card that allows them to enter and use our showers freely as needed. The gratitude they express reminds us of the power of these community partnerships. In addition to their commitment to our community at large, Republic Services also provides high quality, reliable waste management for our YMCA facility. Their drivers are very friendly, and our trash is always picked up on time. The receptionists at their call center are both helpful and knowledgeable. They gladly came and trained our staff on how to properly separate our trash so we can be compliant with the law. Our staff, in turn, instructed our 150 day campers last summer on proper recycling techniques. These children were then able to share with their families, increasing the overall commitment to recycling in our West San Gabriel Valley community. In closing, our recommendation is for Rosemead to continue contracting with Republic Services. They go above and beyond in every avenue of service. They are a company of integrity. Let's continue that tradition, that path of goodness in the city of Rosemead by staying with Republic Services. It's a decision that your city will never regret. Respectfully, Valerie Gomez and Katherine Kopp" The City Clerk and City Attorney finished reading the written public comments, so Mayor Dang opened it up to the floor for any public comments. Ron Esquivel expressed support for Republic Services, stating that the company has been a reliable partner to the City. He shared positive personal experiences, noting that bulky item pickups are handled promptly, often the next day, and that additional items have been collected without issue. He emphasized that the lowest cost does not always equate to the best service and indicated a willingness to pay slightly higher rates in exchange for quality and reliability. He added that continuing with the current Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 20 of 37 provider would be less inconvenient for residents and noted the company's support of local community groups. He concluded by speaking in favor of retaining Republic Services. Janelle Bustamante, a resident of Rosemead, shared her longstanding ties to the community, noting that she grew up in the San Gabriel Valley and has deep family roots in the City. She highlighted her grandparents' decades of residence and her grandfather's long service as a homeowners association president, emphasizing the importance of reliable waste collection services to the neighborhood. Ms. Bustamante expressed strong support for Republic Services, describing her experiences with the company in both Alhambra and Rosemead as consistently exceptional. She noted that she is both a customer and an employee of Republic Services, where she serves as a Sustainability Advisor. She also outlined the company's involvement in the community, including participation in local events such as the Fourth of July parade, Trunk -or -Treat, holiday programs, community cleanups, and other City activities, as well as Republic -sponsored events like compost giveaways, a -waste drop-offs, and paper shredding services. She further highlighted the company's contributions, including event sponsorships and scholarships for local students. Ms. Bustamante concluded by expressing her commitment to continuing to serve the City and encouraged residents to reach out with any questions or feedback. Ruben Martinez addressed the Council to express his commitment to the City of Rosemead and its future. As a Sustainability Advisor, he emphasized his dedication to environmental protection and waste reduction, highlighting his efforts over the past year to assist residents and businesses in improving recycling practices and ensuring compliance with new regulations. Mr. Martinez described his outreach efforts, including educating the community on the importance of separating food waste and explaining how organic materials can be repurposed into renewable energy and compost. He noted that these initiatives help reduce greenhouse gas emissions and provide benefits such as free compost for residents. He also highlighted his active involvement in City events, stating that he has consistently participated in compost giveaways and community cleanups. Mr. Martinez expressed pride in serving the community in which he was raised and conveyed his strong personal connection to the City. He concluded by urging the Council to continue its partnership with Republic Services, affirming his commitment to meeting all contractual standards and supporting Rosemead's goals for sustainability and environmental responsibility. Larry Tamez, a longtime Rosemead resident since 1972 and local pastor since 1978, spoke in support of Republic Services. He shared that he has developed a positive relationship with collection staff, noting their responsiveness and willingness to answer questions both at his home and at his church. Mr. Tamez stated that the hauler has been helpful in providing guidance when materials are improperly disposed of and in keeping him informed about proper waste practices. He also acknowledged challenges such as illegal dumping near his church and expressed appreciation for the service provider's role in addressing such issues. He encouraged the Council to retain the current provider, emphasizing that lower cost does not always equate to better Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 21 of 37 service and stating that it is best not to change a system that is working well. He concluded by urging the Council to consider the voices of Rosemead residents. Alex Moran, Sanitation Director for Teamsters Local 396, addressed the Council regarding the City's consideration of proposals for its waste hauling franchise. He noted that the union represents over 15,000 workers in Southern California's transportation and sanitation industries. Mr. Moran expressed the union's support for retaining Republic Services as the City's service provider, stating that the company offers a strong combination of cost, service quality, and fair treatment of employees. He highlighted that the union represents many Republic Services workers in the region, including those serving Rosemead, and commended their contributions to the community and commitment to customer service. He also emphasized Republic Services' safety record and its cooperative relationship with the union, noting that employees receive competitive wages, healthcare benefits, and pension security. Mr. Moran added that union jobs contribute positively to the local economy, as workers live, spend, and invest in the community. He concluded by encouraging the City to continue supporting a union workforce by maintaining its partnership with Republic Services. Manny Govea, Southwest Area Municipal Manager for Republic Services, stated that for more than 25 years the City of Rosemead has had a stable and committed partnership with Republic Services, as both parties have navigated California's regulatory requirements together. He described Republic Services as a long-term and trusted partner and stated that the company has worked to maintain some of the lowest customer rates in the San Gabriel Valley despite increasing regulatory mandates and industry requirements. Mr. Govea noted that with only three months remaining before the new contract term, Republic Services is the only proposer able to guarantee a seamless transition on the August 1 start date, given that its personnel and operational systems are already in place as the incumbent provider. He emphasized that incumbency allows the company to focus on enhancing service programs rather than managing start-up logistics such as routing, account setup, and system development. He added that Republic's Rosemead team drivers, with an average tenure of 19.8 years, help ensure continuity and uninterrupted service. He further stated that Republic Services would continue its commitment to community sponsorships and programs, and addressed concerns regarding illegal dumping by noting the company's willingness to support unlimited abandoned item collection at no additional cost, if desired by the City. Mr. Govea referenced prior Council direction encouraging innovative community engagement programs and stated that Republic Services is prepared to implement initiatives such as Serve Rosemead, Dumpster Day, and the Green Business Ambassador Program. He also asserted that the proposed bundled rates would provide cost savings compared to existing rates for required services, citing a 21.2% reduction for a three -yard commercial service package including trash, recycling, and organics collection. He concluded by urging the Council to consider awarding the contract to Republic Services and reaffirmed the company's commitment to the City of Rosemead. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 22 of 37 Council Member Armenta noted a discrepancy in the submitted materials, stating that the letter referenced Republic Services as a sponsor of "Concerts in the Park," while another document did not reflect that sponsorship. Mr. Govea responded that Republic Services intends to maintain all existing programs currently in place. He added that, in response to Council direction from the December 12 meeting requesting new and innovative initiatives, the company also developed additional program enhancements focused on diversion and community engagement. Council Member Armenta thanked Mr. Govea for the clarification and requested that the document be entered into the official record to ensure consistency and clarity. City Clerk Hernandez confirmed that the document would be added to the record. Javara Perilette President of Republic Services, stated that he has oversight responsibility for operations across Southern California and expressed appreciation for the Council, staff, and Republic Services employees, particularly the drivers. He conveyed pride in the company's team and its relationship with the City of Rosemead, noting that Republic Services is committed to continuing to serve the community and offering support for any questions or concerns. He concluded by thanking the City on behalf of the company's employees. Patricia Trujillo, a Rosemead resident of 40 years, stated that she has been serviced by Republic Services throughout her time in the City and expressed strong support for the company. She indicated agreement with the majority of submitted public comments and shared that she has consistently had positive experiences, noting that Republic Services staff have been responsive and accommodating to special service requests. She concluded by expressing appreciation for the company's service to the community. David Perez thanked the Council for the opportunity to present Republic Services' best and final proposal, noting that they incorporated prior Council feedback to improve pricing, equipment, programs, and community outreach. He highlighted the addition of enhanced engagement efforts, including a Community Liaison, Mr. Ed Chen, to support a smooth transition and ensure timely response to service issues. He stated that Republic's proposal emphasizes overall value, combining competitive pricing with high-quality service, new equipment, and continued compliance support. He also noted his personal ties to Rosemead as a local resident and Don Bosco Tech graduate. In closing, he acknowledged the difficulty of the decision and clarified that while many current customers do not yet subscribe to recycling and organics services, changes in pricing would still apply. Tim Murakami spoke in support of Valley Vista Services, addressing concerns about transitioning service providers by sharing his own experience with a recent change in his city, which he described as seamless and without disruption beyond receiving a new bill and bin replacement. He noted his long-standing relationship with Valley Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 23 of 37 Vista, spanning over 25 years, and emphasized the company's deep community involvement. Drawing from his experience organizing youth programs, he credited Valley Vista as a key partner that consistently provided funding and support, enabling free activities, equipment, and opportunities for local youth. Mr. Murakami highlighted the company's responsiveness, generosity, and willingness to assist without seeking recognition. He also spoke to their integrity, stating that their commitment extends beyond contractual obligations and that they consistently follow through on their word. While acknowledging Republic Services as a reputable provider, he described Valley Vista as a homegrown company with strong ties to the community and a vested interest in its success. He concluded by expressing his strong trust in Valley Vista and encouraged the City to consider them for the contract. Daniel Deng, a Rosemead business owner of 25 years, spoke about the financial strain rising waste service costs have placed on local businesses. He shared that his monthly bill increased significantly—from $169 in early 2020 to $290 within two years— which he said raised concerns about affordability and transparency. He emphasized the challenges small businesses face, noting closures in the community and the difficulty of sustaining operations amid rising expenses. Mr. Deng urged the City Council to carefully evaluate the proposals, highlighting the cost difference between the bidders—stating that a lower monthly rate could result in meaningful annual savings for business owners. He also expressed broader concerns about large corporations profiting at the expense of small businesses and encouraged the City to support providers that are more closely connected to and invested in the local community. Dolores Weidermann, resident, spoke in support of continuing service with Republic Services. She shared that her experiences with the company's customer service have consistently been positive, describing staff as courteous, responsive, and helpful whenever she has called. She also acknowledged the efforts of the truck drivers serving her neighborhood near Mission and Walnut Grove, noting their attentiveness and willingness to go above and beyond for residents. She emphasized the importance of recognizing these frontline workers who provide day-to-day service. Ms. Weidermann added that compensation levels should be considered in context across all organizations, and encouraged the Council to weigh all factors in its decision. She concluded by requesting an opportunity to speak to Council again before the meeting adjourns. Lawrence Lai, a Rosemead business owner, with two local establishments, spoke about the importance of reliable waste service, particularly in the hospitality industry where large volumes of trash are generated. He shared concerns about missed pickups by Republic Services, which can result in trash accumulating on-site and requiring staff to manually move bins to the street. He also noted the lack of weekend customer service, explaining that missed collection issues reported online are not addressed until Monday, leading to operational challenges over busy weekends. Additionally, he described difficulties with bins not being returned to their proper location, creating safety concerns when staff must retrieve them from across busy streets. Mr. Lai Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 24 of 37 concluded by expressing support for considering a change in service providers to better meet the needs of local businesses. John Ouintanilla shared that, although he recognized strong arguments on both sides, he ultimately supports Republic Services based on his long experience in the City of Rosemead. Having lived in the community for over 50 years, he stated that Republic has been the best provider he has seen and highlighted the company's consistent support for local organizations, including schools and educational initiatives. He acknowledged the difficulty of the decision and encouraged the Council to consider maintaining the contract with Republic for the benefit of the community and business owners. Susanne Passantino, Market Director of Government Affairs for Republic Services, addressed the Council and expressed appreciation for the longstanding relationship with the City of Rosemead. She emphasized that Republic values its role and works continuously to earn the trust and confidence of the City, its residents, and business community. Reflecting on the City's decision a decade ago to award Republic the contract, she stated that the company has remained a committed and reliable partner, providing safe, high-quality service while helping the City comply with evolving recycling regulations. She affirmed that Republic does not take this responsibility for granted and pledged to continue delivering dependable service if selected again. Ms. Passantino also highlighted the experience and dedication of Republic's local team, describing them as highly trained, compassionate, and deeply committed to the community. She concluded by respectfully requesting the Council's continued support. Victor Ruiz, resident, began by referencing the history of waste services in Rosemead, recalling his experience dating back to 1978 when the City was served by Modem Disposal, which later transitioned to Consolidated Disposal and eventually Republic Services. He shared that he had a positive working relationship with Consolidated Disposal and described them as a reliable and well-managed company. He then noted that he had heard negative comments during the public discussion, including remarks about outside influence on the City's decision-making, which he disagreed with. Mr. Ruiz emphasized his belief that the lowest bid does not necessarily represent the best value and expressed concerns regarding non-union service models compared to unionized labor standards, which he associated with higher training and performance expectations. He also referenced past industry experience and current service providers, stating dissatisfaction with street sweeping services. He concluded by strongly expressing his support for Republic Services, describing them as a professional and dependable provider. Pablo Luna, a Rosemead resident of 20 years, shared concerns about his experiences with Republic Services, stating that staff were sometimes rude when he called to report issues. He also noted ongoing problems with bulky trash in city streets and frequent service -related concerns he has reported. While acknowledging that Republic provides service, Mr. Luna said residents are often hesitant about change and uncertainty surrounding a new provider. He expressed limited familiarity with Valley Vista's services and noted that although the company has presented various Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 25 q(37 service improvements, transitioning to a new provider can feel difficult and uncertain for the community. City Clerk Hernandez announced that members of the public were present on Zoom and invited any participants wishing to speak to unmute themselves, noting she would call on them by first name. She stated for the record that no Zoom participants indicated a desire to speak. Mayor Dang then made a final call for any additional members of the public in attendance who wished to address the Council to come forward. Frank Quintanilla shared that he has lived in Rosemead for several years and has been an active Kiwanis Club volunteer for over 30 years, emphasizing a lifelong commitment to community service. He stated that, through his involvement in local organizations such as the Lincoln Training Center and the Rosemead Ed Foundation, he has consistently seen Republic Services actively supporting community events, including providing assistance for celebrations and fundraising efforts. While acknowledging that Valley Vista may be a capable company, he expressed strong support for Republic Services based on his long-standing experience, describing their staff and representatives as community -oriented and consistently engaged in local causes. He concluded by urging the City Council to continue its partnership with Republic Services. Ed Chen shared that he previously worked for a regional company serving the City of Rosemead for 12 years and spoke about his personal and professional connection to the community. He noted that he has since transitioned into a full-time career as a police officer but remains committed to public service. He spoke in support of Valley Vista Services, describing it as a family-owned, locally rooted company in the San Gabriel Valley that he believes is well-positioned to provide responsive and community -focused service. He emphasized that local ownership allows for greater accessibility, accountability, and flexibility in addressing city and resident needs. Mr. Chen acknowledged that service transitions can be challenging but expressed confidence that Valley Vista could manage the process effectively, particularly with proper planning and potential contract extensions. He concluded by thanking the Council for the opportunity to serve and for their consideration. Norma Murakami spoke in support of Valley Vista Services, sharing her experience working with the company through two nonprofit organizations she founded over the past decade. She said Valley Vista provided significant in-kind support during a six- month construction project by supplying, servicing, and managing trash bins at no cost, which she credited with helping her organizations save substantial funds. She described Valley Vista as a reliable and community -minded partner that has contributed in multiple ways beyond the scope of contracts, emphasizing her belief that the company demonstrates strong integrity and commitment to local causes. Mrs. Murakami also expressed a preference for locally rooted, "mom-and-pop" style companies, stating that she believes they are more connected to the community than larger corporations. While acknowledging that change can be difficult, she Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 26 of 37 encouraged the Council to be open to it and to consider giving Valley Vista an opportunity to serve the City. She concluded by urging consideration of both residents' and business owners' concerns in the decision-making process and reiterated her support for Valley Vista. Norman Li, a resident, shared positive comments about Republic Services based on his friend's experience with a driver who services Angelus Street and described generally favorable interactions with the company. He then raised concerns regarding information he had read in a publication about campaign contributions made by companies involved in the contract process, stating that this raised questions for him about transparency, influence, and potential conflicts of interest in the procurement process. He expressed concern that such contributions could undermine public trust and contribute to perceptions of impropriety. Norman concluded by emphasizing the importance of maintaining transparency and integrity in city decision-making and expressed his concerns about the broader impacts on community trust. There being no further comments, Mayor Dang closed the Public Comment period. Mayor Dang recessed the meeting for a 10 minute break. Mayor Dang reconvened the meeting at 10:27 p.m. Council Member Low thanked both Republic Services and Valley Vista for participating in the second round of proposals and acknowledged their effort in refining their bids. She expressed appreciation to Valley Vista for remaining engaged in the process and noted the involvement of their consultant, Ed Chen. She stated that while the financial proposals were strong on both sides, her decision is influenced by factors beyond cost, particularly the importance of continuity and the potential impact of change on residents. She referenced strong public input in support of Republic Services, noting long-standing community relationships and positive experiences shared by residents over many years. Council Member Low also acknowledged concerns raised by the business community regarding service and encouraged Republic Services to continue working closely with businesses if selected. She highlighted the importance of both resident and business needs in the decision- making process. She concluded by thanking Valley Vista for their participation but stated her support for continuing the contract with Republic Services based on overall community input and service history. Council Member Armenta thanked both Valley Vista Services and Republic Services for their participation in the selection process and acknowledged long-standing relationships with individuals connected to both companies. She stated that she believes Valley Vista would be capable of providing quality service if selected. However, she emphasized that as an elected official, his responsibility is to represent the voices of residents. She noted the significant public input in favor of continuing with Republic Services and stated that this feedback carried strong weight in his decision-making. Council Member Armenta clarified that her decision was not based on personal relationships but on what she viewed as the preference of the community. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 27 of 37 She reiterated that while she has no negative view of Valley Vista, her obligation is to follow the expressed wishes of residents. Council Member Clark stated that she supported Republic Services and appreciated Valley Vista's participation in the process. She highlighted several aspects of Republic's proposal that she viewed favorably, including senior discounts, efforts to donate reusable bulky items to organizations such as Goodwill, and flexibility for nonprofits to adjust service levels based on need and cost. She also noted Republic's long-standing use of source -separated recycling practices, expressing concern that single -stream systems may reduce recycling effectiveness due to contamination. Drawing on her experience with the LA County Solid Waste Task Force, she referenced the challenges associated with compliance under SB 1383 and emphasized the increasing regulatory demands on cities. Council Member Clark concluded that, in her view, Republic Services is better positioned to manage current and future solid waste and recycling requirements. Mayor Dang began by thanking both Valley Vista Services and Republic Services for their participation and competitive proposals, noting that both companies made efforts to refine and lower their rates after the initial round in response to Council feedback. He acknowledged the difficulty of the decision given how closely matched the proposals were. He then asked staff to clarify comments made during public discussion regarding union labor requirements. Consultant Baxter confirmed that union labor was not a requirement of the RFP. City Attorney Richman explained that prevailing wage laws apply to public works contracts and are distinct from union wage structures. Ms. Baxter further clarified that there was no requirement for a contractor to be unionized to provide services. Mayor Dang referenced Page 3 of 7 of the Staff Report and asked for clarification regarding a provision related to changes in law, specifically requirements that could mandate the use of electric vehicles. He noted that one proposal indicated the city and service recipients would not be obligated to purchase new vehicles, while the other approach suggested that costs could be renegotiated in good faith if new regulatory requirements were imposed. Consultant Baxter confirmed that if such a scenario occurred, one option could involve the City purchasing the vehicles, though another option would be for the service provider to negotiate adjusted rates to cover the additional costs. Manny Govea explained that Republic Services currently bears the cost of replacing aging trucks as part of its normal capital replacement cycle, and that these costs are not passed on to ratepayers. He noted that if future state legislation required fleet electrification, compliance costs would similarly be addressed within normal Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 28 of 37 operations when possible, but more significant or accelerated mandates could require discussions with the City regarding cost impacts and implementation. Mayor Dang asked for clarification on a worst-case scenario in which state law would require rapid fleet electrification, including whether the City could be responsible for purchasing vehicles. Govea responded that outcomes would depend on the specific regulatory requirements and compliance structure, and that any resulting costs would need to be discussed and addressed collaboratively between the City and contractor. The City Attorney added that, in most cases, compliance responsibility would fall on the contractor, with costs typically addressed through negotiated rate adjustments rather than direct City purchases. She noted this approach is consistent with how prior regulatory changes, such as SB 1383, have been handled. Mayor Dang sought further clarification on vehicle ownership at the end of a contract term under such a scenario, and whether the City would retain any vehicles if purchased. The discussion remained open-ended, with staff emphasizing that such outcomes would depend on the specific terms negotiated and the nature of any future legislation. Mr. Govea stated he did not know the answer regarding vehicle ownership at the end of a potential contract scenario involving future regulatory changes. The City Attorney explained that while future state mandates cannot be predicted with certainty, the typical approach in similar situations is that compliance responsibility would fall on the contractor, not the City. She stated it is unlikely the City would be required to purchase fleet vehicles, and more likely that contractors would absorb compliance costs and then seek rate adjustments through a good -faith negotiation process, similar to how SB 1383 -related costs were handled. Council Member Low asked whether there would be an opportunity to negotiate those costs with the contractor, to which the City Attorney confirmed that such discussions would occur in a manner similar to prior regulatory adjustments. Council Member Armenta clarified whether SB 1383 costs were absorbed by the City's general fund or passed through to ratepayers. City Attorney Richman responded that she could not definitively recall. Mr. Govea clarified that SB 1383 resulted in rate increases. Ms. Passantino of Republic Services explained that the electric vehicle scenario discussed is highly hypothetical, noting that the industry -wide transition to electric fleets is expected to align with normal vehicle replacement schedules through 2033, the end of the proposed contract term. She emphasized that under typical conditions, the City would not be responsible for purchasing vehicles, and that any extraordinary Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 29 of 37 regulatory changes would be addressed through good -faith discussions and potential rate adjustments rather than direct City procurement. Mayor Dang asked whether the contract could include clearer language to ensure the City would not be responsible for purchasing trucks under any future regulatory scenario. Ms. Passantino responded that proposed language addressing this issue had already been included in the agreement and could be further refined if needed. The City Attorney confirmed that the City's draft language reflects the negotiated position and recommended proceeding with it, noting that any exceptions had been identified by the proposer. Consultant Baxter clarified that the language in question originated from the City's draft provisions, with additional proposed language incorporated during the best and final offer process. Mayor Dang reiterated his concern that the City should not be placed in a position of purchasing fleet vehicles, stating that if such costs arise, ownership should remain with the contractor. Ms. Passantino clarified that Republic's intent was never to require the City to purchase vehicles, but rather to address any unforeseen regulatory changes through partial cost adjustments embedded in future rate negotiations, subject to City approval. Council Member Armenta asked how the proposed change -in-law provisions would interact with the contract's 4% annual rate cap. Ms. Passantino explained that the 4% cap would continue to apply annually, but that any extraordinary regulatory changes—such as future electric vehicle requirements—would be handled separately through a good -faith discussion process outside the standard annual adjustment. She noted that the anticipated EV transition timeline extends to 2035, beyond the proposed 2033 contract term, and reiterated that the 4% cap would remain in effect as agreed. Any additional discussions would be limited to evaluating new legislative impacts, similar to prior SB 1383 adjustments, and would not guarantee automatic rate increases. City Attorney Richman sought clarification on which version of the change -in-law language was currently before the Council for approval, asking whether it reflected the City's draft or proposed revisions from the vendor. Consultant Baxter responded that staff would need to review the final agreement language to confirm. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 30 of 37 Council Member Low referenced the best and final offer from Republic Services, specifically Attachment B, page 7, regarding language related to electric vehicle requirements. City Attorney Richman clarified that the language under discussion was the version recommended for Council consideration, and emphasized the need to confirm which final version of the agreement was before the Council for approval, noting that any discrepancies would need to be resolved. Council Member Armenta pointed out that the proposal included language stating the City and service recipients would not be obligated to pay for the purchase of electric vehicles, but that Republic had not agreed to that provision and instead proposed a "good faith negotiation" approach. City Attorney Richman reiterated that the Council was not required to accept the vendor's proposed exception and asked for direction on which language the Council wished to adopt so the final agreement could reflect that decision. Mayor Dang stated that in the event of state -mandated vehicle requirements, responsibility for purchasing and maintaining equipment should remain with the contractor, as it would be necessary for service delivery regardless of location. City Attorney Richman clarified that the broader "change in law" provision extends beyond electric vehicles and applies to any regulatory changes impacting contract performance. Mayor Dang pointed to the staff report, noting that Table 1, last box, appeared to reference language about paying for the purchase of new vehicles. He stated his preference that, given the low likelihood of such a scenario, the contractor should bear those costs rather than the city. Mr. Govea clarified that the draft agreement before the Council did not include any provision requiring the City to purchase electric vehicles. He explained that the electric vehicle discussion originated from a prior Council meeting and was incorporated into a "best and final offer" question regarding hypothetical future legal requirements. He emphasized that under the current draft, change -in-law provisions would place responsibility on the contractor, not the City, while still allowing for good -faith discussions if regulations change. The City Attorney confirmed that the recommended contract language already reflects this approach and advised that the Council proceed with the drafted provision. She noted that Republic's proposed exception regarding electric vehicles was identified but not required for adoption, and that broader change -in-law language is intended to cover a range of future regulatory scenarios. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 31 of 37 Mayor Dang reiterated his understanding that the current contract does not obligate the City to pay for vehicles, and that responsibility for equipment costs would remain with the contractor under the agreement as drafted. The City Attorney read into the record the contract's "change in law" provision, explaining that both parties are required to act reasonably and negotiate in good faith if a regulatory change significantly impacts the contractor's operating costs. Under the language, the contractor may request an extraordinary rate adjustment for substantial, unforeseen costs, subject to City Council approval. Mayor Dang summarized the provision as requiring good -faith negotiations between the City and the contractor, with any rate changes ultimately subject to Council approval. He asked whether, under a worst-case scenario involving major new regulatory requirements, the City would be responsible for paying for new fleet vehicles. Ms. Passantino responded that under such circumstances, the company would not expect the City to purchase vehicles. Instead, the contractor would bear initial costs, then return to the City to negotiate any necessary rate adjustments to address significant regulatory changes, consistent with the RFP and contract language. Council Member Clark sought clarification, and the representative confirmed that any adjustments would still require City Council approval, and that the City would not be obligated to directly purchase vehicles, but would instead evaluate and approve any proposed rate changes through the established process. Mayor Dang summarized that any potential cost tied to future regulatory requirements—such as electric vehicle mandates—would, in his understanding, be treated as a prorated or shared cost rather than the city purchasing and owning full - value fleet vehicles. Ms. Passantino of Republic Services agreed that if such a situation ever arose, it would not involve the city purchasing trucks outright. Instead, any cost implications would be handled through negotiation with the city and would ultimately require City Council approval before any adjustment to rates or responsibilities could take effect. Mayor Dang added that if electric vehicle requirements were ever imposed, the impact would extend beyond the city's own fleet, since Republic Services operates across multiple cities and would likely need a much larger number of electric trucks along with charging infrastructure. He emphasized that, in his view, the cost of building and maintaining that charging infrastructure should be borne by Republic Services rather than passed on to residents. Mr. Govea of Republic Services responded in agreement, affirming that those infrastructure -related costs would not be directly passed through to the city's residents. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 32 of 37 Mayor Dang noted that certain items in Table 2 appeared to be reflected in correspondence even if not fully captured in the checklist, including community programs such as "Concerts in the Park" and a bulky item/litter abatement effort, which he indicated would ultimately need to be incorporated into the final contract. He then asked for clarification on the "Recyclist" software system listed in Table 2, specifically its purpose and importance. Ms. Passantino explained that Recyclist is a compliance and reporting platform developed in response to SB 1383 requirements. It is used to collect and organize the data Republic Services is required to report to the state's CalRecycle program. When asked who controls the system, she stated that Republic currently operates the software and serves as the primary administrator ("gatekeeper"), responsible for compiling and submitting required data. That information is then shared with city staff, who also use it for their own reporting obligations to the state. City Manager Kim clarified that the City would also retain access to the Recyclist software for its own reporting and compliance purposes. Ms. Passantino added that incorporating the system into the franchise agreement shifts responsibility for accurate reporting to the hauler, ensuring accountability if any data or reporting obligations are missed. Council Member Armenta then asked for clarification on cost responsibility under the new contract. Ms. Passantino responded that the initial setup cost for the system is approximately $35,000, with optional enhancements typically around $5,000. She confirmed that these costs would be bome by the hauler, not the City. Council Member Armenia asked Republic Services to clarify its "scout" route operations. Republic Services President Javara Perilette confirmed that scout routes are used and acknowledged that service issues do occur, including missed pickups and occasional delays in customer service response times. He stated the company is not perfect but is actively working to address complaints and follow up on issues raised by residents during the meeting, including deploying operational staff to resolve specific concerns and adjust service levels where needed. Mayor Dang then summarized his evaluation of the proposals. He reiterated his position that, in the event of potential future requirements such as electric vehicle mandates, he would not support the City purchasing vehicles outright and preferred any cost impacts be handled through prorated or negotiated adjustments rather than direct acquisition by the City. He highlighted differences in community benefit offerings, noting Republic's scholarship and charitable contributions alongside Valley Vista's, and calculated a relatively small financial difference between the proposals. He also emphasized the importance of Republic's proposed software Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 33 of 37 system for regulatory compliance, particularly in relation to CalRecycle reporting requirements, viewing it as increasingly important under evolving state mandates. He further noted that Republic had responded to Council feedback by reducing rates and that residential pricing between the proposals was comparable. While acknowledging strengths in both bids, he stated that based on the overall evaluation—including rates, compliance tools, and service considerations—he would cast his vote in favor of Republic Services. Council Member Armenia asked whether Valley Vista should also be given an opportunity to address the Council after hearing extensive public comment in support of Republic Services, emphasizing fairness in allowing both proposers to be heard. Mayor Dang agreed and invited Valley Vista to the podium. David Perez, Valley Vista, stated he believed they had submitted a strong proposal for both residents and businesses. A key point of emphasis was fleet strategy and future regulatory risk: Valley Vista argued that starting the contract with a fully new fleet would better shield the City from future cost increases tied to electric vehicle mandates, rather than transitioning mid -contract. He explained that under the BAFO process, both proposers were permitted different fleet assumptions, and they chose to present a new -fleet approach as a way to reduce future cost uncertainty. Mr. Perez also noted that all haulers provide similar recycling and materials recovery services, though the level of integration and processing varies. Valley Vista clarified that certain commercial processing services discussed by Council were not part of the City's requested scope under the current RFP structure. Mr. Perez then contrasted its structure with Republic Services, emphasizing that Republic, as a large publicly traded national company, makes key decisions at a corporate level rather than locally. They suggested this can limit flexibility and responsiveness compared to a locally controlled operator. They also referenced past industry challenges with electric vehicle rollout efforts to illustrate uncertainty in large-scale fleet transitions. Finally, he highlighted their workforce commitments, including union -scale wages, full employee benefits, retirement contributions, and long employee tenure, positioning itself as a stable and experienced operator despite its smaller, more regional structure. Mayor Dang thanked Mr. Perez for his comments and clarification, acknowledging the competitiveness of Valley Vista's proposal. He noted that the discussion had made the decision particularly challenging, recognizing that there is value in smaller, locally rooted or "mom-and-pop" style operators due to their ability to respond quickly and make decisions with less bureaucracy. At the same time, he emphasized that larger companies may offer added stability, resources, and institutional capacity. Mayor Dang stated while he did not want to diminish Valley Vista's presentation, he appreciated the strengths of both companies and recognized that each brought meaningful advantages to the City's consideration. ACTION: Moved by Council Member Clark and seconded by Council Member Low to proceed with items one and three with Republic Services. Motion was carried out Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 34 of 37 by unanimous vote: AYES: Armenta, Clark, Dang, and Low NOES: None ABSENT:Ly Council Member Armenta asked whether the City could continue with Option 1 until SB 1383 requirements were fully mandated or whether full implementation effectively required selecting Option 2. Staff clarified that SB 1383 has already gone into effect statewide, though full compliance is still being implemented through phased rollout and service expansion. City staff explained that the key difference between the options was financial structure: Option 1 would require the City to directly fund approximately $265,000 annually for SB 1383 -related implementation, including staffing and compliance activities, potentially drawing from the general fund and requiring additional city resources and expertise. Option 2 would instead embed those costs into the franchise agreement rates, effectively spreading the cost across residential and commercial ratepayers while shifting operational responsibility to Republic Services. City Manager Kim confirmed that the City does not currently have sufficient internal technical capacity to fully manage the program independently. Mayor Dang expressed support for Option 2, describing it as the more "future -proof' approach. He characterized SB 1383 compliance as an increasingly complex and ongoing regulatory burden and stated that partnering with Republic Services under Option 2 would provide greater operational certainty and reduce the City's risk exposure. He indicated his intent to support Option 2, framing it as a more practical and sustainable way to ensure compliance moving forward. ACTION: Moved by Mayor Dang and seconded by Council Member Armenia to select option 2. Motion was carried out by unanimous vote: AYES: Armenta, Clark, Dang, and Low NOES: None ABSENT: Ly Consultant Baxter noted that, in addition to the contract approval items already discussed, there were two final administrative actions for Council consideration. First, Council would be asked to authorize the City Manager, in coordination with the City Attorney's Office, to make any minor or non -substantive revisions to the agreement. This authority would be limited to minor irregularities that do not change the substance of the agreement. Second, Council would be asked to direct the City Manager to schedule a public hearing regarding the proposed new service rates, allowing residents and stakeholders an opportunity to review and comment on the rate structure before final implementation. ACTION: Moved by Council Member Low and seconded by Council Member Armenta to take the following actions: 1. Authorize the City Manager, in coordination with the City Attorney's Office, to make minor changes to the Franchise Agreement to correct any irregularities, typographical errors, or to make minor operational changes, and authorize the City Manager to execute the final Franchise Agreement on behalf of the City; and Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 35 of 37 2. Direct the City Manager to set a public hearing upon the Service Rates, Franchise Fee, and other City Fee proposed in the Franchise Agreement and to prepare and mail the prescribed notice as required under Section 6 of Article XIII.D of the California Constitution. Motion was carried out by unanimous vote: AYES: Armenta, Clark, Dang, and Low NOES: None ABSENT: Ly 6. MATTERS FROM MAYOR & CITY COUNCIL A. Report, Discussion, and Direction Regarding the Scope of Work for State Lobbyist and Advocacy Services At the February 28, 2023, City Council Meeting, the City Council requested that an item be brought forward at a future meeting to discuss the scope of work for a Request For Proposals ("RFP") related to State Lobbyist and Advocacy Services. Additionally, the City Council requested a lobbying cost survey of comparable cities by population in the San Gabriel Valley, or broader Los Angeles County, if necessary. Both items are included in this report for City Council review and discussion. Therefore, it is recommended that the City Council provide direction on state lobbying and advocacy services. Recommendation: That the City Council provide direction on the state lobbying and advocacy services. Mayor Dang reiterated that this item was tabled to a future meeting at the request of Mayor Pro Tem Ly. B. Council Comments Council Member Clark reminded the Council that Ms. Dolores Weidermann had requested an opportunity to speak at the end of the meeting. City Attorney Richman clarified that general public comment occurs at the beginning of the meeting and noted that Ms. Weidermann had already spoken during the agenda item related to waste services. Mayor Dang apologized to Ms. Weidermann and explained that the Council was adhering to established procedural rules to ensure fairness and consistency in public participation. Mayor Dang then offered closing remarks, thanking both Valley Vista and Republic Services for their presentations, acknowledging that the decision had been difficult and that either option would have been beneficial to the City. He also expressed appreciation to City staff for their work throughout the process. Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 36 of 37 7. ADJOURNMENT Mayor Dang adjourned the meeting at 11:39 p.m. He announced a scheduling update, noting that the regular City Council meeting on May 23, 2023 would be cancelled, and that the next scheduled meeting would take place on June 13, 2023. Ericka Hernandez, City Clerk APPROVED: &4 Sandra Armenta, Mayor Rosemead City Council Regular Meeting Minutes of May 9, 2023 Page 37 of 37