City Council - Regular Meeting

Good evening. Welcome to Ly Council meeting for Monday, November 17, 2025. At this time, I'll take a moment of reflective silence followed by the pledge of allegiance. Mr. Lipian, would you please lead us in the pledge? I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Thank you, Mr. Lipian. everyone to please turn your cell phones off or in a silent mode out of respect for the meeting would be greatly appreciated.

Mr. Clerk, can I roll call please? Yes, sir. Mr. Callahan here. Mr. Sierra here. Mr. Armstrong here. Mr. Oswald here. Mrs. Mitchell here. Mr. Tolette here. Mr. Lipian here. Mrs. Sorca here. Mrs. Davis here. Mr. Schneider here. Mr. Stewart here. All present. Public hearings.

We have one. You are hereby notified that a public hearing will be held on Monday, November 17th, 2025 at 7 p.m. to consider the following. An orance amending section 1131.02 2 codified ordinances of the city of Ayria, Ohio known as the zoning ordinance to reszone certain real property located on West Ridge Road, Yria from R-MHL residential multihold low density district and R-H residential mult multi household high density district to R-H residential multihold highdensity district. Are there any proponents? Welcome. Please state your name and address for the record.

My name is Robert Baron with Builders and Developers. Address is 27201 Royaltton Road, Columbia Station. We're here requesting approval of a zoning change to an existing parcel that's zoned currently RMHL to RMH, which is a current zoning of the balance of the parcel. The site total is 9.6 acres. With the zoning change, it'll allow us to build 23 buildings with four units each. All buildings will be single story and they'll all each unit will have a private entrance. We'll have two separate driveways, one off of Brunswick and one off of West Ridge. And the parking will be concrete pavement. We will have our own detention pond that'll be able to handle all of our um storm water and the sanitary sewer is located off of Brunswick Drive and water is available at both entranceways. At this time, I'd be glad to address any questions and I'll throw out the site plan through you, Mr. President. Um thank you, Mr. Baron, for your investment. I just want to let you know we do have a few neighbors in the audience tonight that probably would like to speak to you on the side about just um buffering and um things of that nature.

They're over here by the the center aisle. Thank you. Yep. Are there any other proponents or any questions for Mr. Bear? Miss uh Sorca. Thank you through the chair through the president. I just have a question because I'm getting a lot of concerns about street lighting on private streets and private drives. Are you putting in street lights along here? The I'm assuming these are going to be private streets. Yeah, they'll be private and yes, we'll have street lights. Thank you.

Are there any other questions for Mr. Baron? Very good. Thank you. Are there any other proponents? Are there any other proponents? Are there any opponents? Are there any opponents here? Okay. Are there any opponents? Are you clear? This public hearing has been held. Thank you.

Sponsored by community development and ordinance amending section 1131.02 2 codified ordinances of the civilier Ohio known as a zoning ordinance to reszone certain real property located on West Ridge Road from a R-MHL residential multihold low density district and an R-MH residential multihold high density to a R-MH R-MH residential multihold highdensity district. Mr. Schneider. Mr. President, I ask that this ordinance be passed in its third reading under suspension of rules. Second. Second by Miss Mitchell. Is there any further discussion? Question

on the suspension. All those in favor signify by saying I. I. Oppose. Nay. On the passage. All those in favor signify by saying I. I. Oppose. Nay. Motion carried. Ordinance 2025-187. That's all the public hearings.

Can I get approval on the minutes? Move. Move by Mr. Sarah. Second. Second by Mr. Sers. Is there any further discussion? Question. All those in favor signify by saying I. I. Oppose. Nay. Motion carried. Remarks and reports from city officials. Mayor Brewaker. Thank you, Mr. President. I have nothing this evening, but available for questions. Any questions for the mayor? Good. Safety service director, Mr. Pinowski.

Thank you. Through you. Uh, just one thing to update you on. We are finalizing the street scanning report. Um, all that's left to do is to add the recent paving work that was done, so it's reflected. Um, we should have that out to you soon. Um, but it looks pretty good. Uh, Councilwoman Mitchell joined us for a presentation. Um, but we'll we'll the scores actually came back pretty good overall. Uh, but we'll have that finalized report out to you here uh, soon. Thanks. Very good. Any questions for say Mr. Oswald?

There you Mr. President, um, for my benefit and a few people that have been asking me, what's the, um, when you buy one of those flags, the vet flags that they hang up, is that one price and they're up there forever, do they come down or do they pay every for for everybody's benefit? What's the process on that? How they're

s through you, Mr. President. the the veterans banners that you're referring to that are hung down downtown. Um we're looking at um as far as the lifespan, they've actually held up better than we anticipated. So, we're having a conversation now. Originally, it was for three years it would hang and then would come down and go to the family members. So, we're exploring that now. Um we're looking at additional space for next year. Uh we had a change at the uh in leadership at the Yri Ayria veter veterans council who had been making a donation to um offset some of the costs to the individuals are doing them and so we're confirming with them whether that will continue into the future. Um so I don't have an accurate price for you right now because we have a little bit of transition right now. We will do them again next year. They should be coming down soon. We will publicize them when we're ready and we have some of those questions answered for next year. And once I have them, I can share that with council as well. But there's a couple of things that are in in the works as far as transition and this is going this is the end of the third year. So we have a couple of questions we need to answer, but we'll get that information out.

Thank you, Mr. Worka. Thank you through the president. The next piece of legisl the first resolution, I just have a question on the resolution that had the list of the unpaid utility bills. There's one account that's still waiting on a leak credit. So I wondered if we're passing that as is or we should that gets noted. That's maybe a procedural issue question on the attachment the attached list the one there's a a notation that is waiting on a leak credit. So

sure thank you uh through you Mr. President. At the end of the day uh we'll wait to for to set the amount anything left over after the leak credit is applied. I'll work that out with Miss Connor so that the right amount is is certified. Thank you, Mr. Sarah. You, Mr. President, excuse me. Um, leaf pickup that goes into the first part of December or till it snows. Is that correct? Uh, last year we did it through mid December. So, we haven't picked an end date yet. It'll kind of depend on need, I suppose, but we'll announce that in advance before we cut it off. So, the trucks are still out there whether it depends on Oh, they're absolutely out there picking up uh pretty much every day right now. Yes. Thank you. And Mr. Schneider.

Through you, Mr. Chair to Director Pineowski. On that topic, is the uh compost facility through the end of November or does that roll into December? I can't remember. Just for my own sake. Uh through you. I I don't know. I'll get you an end date on that. I'm not sure when when the cuto off is, but I'll get that circulate that. Thank you, director. Any other questions for the director? Thank you. Finance director.

Thank you, Mr. President. So the um October income tax reports were distributed today. Everybody should have got their email. Um so if you look if when you look at that report, you're going to see that when you look at the first 10 months of 2025 and compare them to the first 10 months of 2024, income tax revenues are up 6.58%. So that's that's considerable growth. That's the good news. The bad news when you look at the cash balance in the general fund and you compare it to where it was at the beginning of the year, cash balance in the general fund is down $2,89,540. So, it's apparent that significant growth in income tax revenue that we are having is not enough to cover the expenditures that we're incurring. So, we're going to have to keep a very very close eye on this situation as we move forward. as I've noted in the past. Thank you.

Any questions for the finance director? Thank you, Law Director Derry.

Uh good evening, Mr. President. Uh through you just briefly. Uh my office will be uh participating in a ninth district court of appeals argument uh this Thursday uh with respect to the um former days in ownership's challenge to the assignment of the receiverhip. Uh we of course on behalf of the city and as the um proponents of that receiverhip are um again defending the um fact that we believe that the receiver was um appropriately appointed. Um I cannot uh give uh you all a specific date as to when we should expect a decision. However, typically it does take at least 60 to 90 days for the ninth district after an oral argument to render a decision. So, we should see that hopefully ideally uh in the next year. Uh if uh I hope all of you had the opportunity to see the mayor's uh update um from earlier today. Um meanwhile, the receiver has um been finalizing a purchase agreement on that property. uh and until and unless there is a court order letting the receiver know that uh he is not acting uh lawfully and appropriately uh he has indicated he will be moving forward uh and I will keep you updated uh uh on any uh with any updates that I that I will have for you. So I again these things do not move uh quickly but uh they are moving forward and uh we will uh persist on um until we get where

we need to be with this. So I have no uh intention of letting up. So uh also uh there is a federal lawsuit that the ownership for days in has filed um and um that is within their rights. Um the next uh status in that case is in March. So uh again that also will not be moving quickly. So um as long as the ownership would prefer to pay attorneys which is within his right rather than take care of his business with his property, we will uh continue to uh pursue that. So any questions for the law director? Miss Davis.

You chair. um with with this um stewardship or trusteeship or whoever's in charge when they sell this property is it is it going to be in writing that they have to demolish the days in

through you Mr. president. Uh the ID transfer will uh specifically require that the nuisance as is set forth in Ohio law and in the court order um be uh abated and there is a definition as to abated. So um my understanding and I don't want to say too much uh in public forum my understanding is that uh it would be most fiscally uh prudent to demolish but let's say that the new ownership wished to um spend whatever it would take to get that property back into um full repair and and going and that is the route they wish to take. Um I mean that that would be their prerogative. Um but um from all of the studies and uh consultants uh reports that I have heard about thus far, uh it does not sound like that would be financially um reasonable to do that. So So short answer, no. It does not flat out say you must demolish, but it does say that you must remedy all the issues. Thank you,

Miss uh Mitchell, and then Miss Sorca. Thank you, Mr. President. Through you to the law director, I'm going to change the subject from the day's end. Do we have an update on DBR? I know that we agreed and and moved forward and what are they doing? What's going on? If you can, please

Mr. President. Uh I can uh let you know that um to the best of my knowledge uh the city has not heard anything from DBR. Uh we have not received any signed documentation from um DBR commercial realy. Um, all documentation has been signed as as far as the city's concerned. And it is my understanding that the Lia City Schools has not received uh any signed documentation either. And um that's um as recently as this past Friday is what I've heard from the attorney for the Leria City Schools. Um I have heard through the grapevine that there have been discussions with the port authority still ongoing. Uh but as far as uh having documentation that's fully executed in hand um I we do not have that.

Mr. Worka, thank you through you, Mr. President. Back to Days in for just a minute. So the sale goes through the new owners have whatever rights. I guess I'm curious as to what's the zoning for that property. Just briefly, Darl, I don't expect you to know, you know, what else would be allowable at that location besides the hotel without it coming back to the city to go through that process? Just curious. Well, through you, Mr. President, and Darl, please. That is part of the overlay. Is that fall under in the overlay,

Mr. President? Through you. Um to my knowledge that is not in the overlay per the parcel districts from memory I do believe it's currently zoned business general district and business general is our most userfriendly district we have in the zoning code the current rewrite I'll have to defer to Mr. Shing on what it's going to be but I do believe we kept it akin so that way it's more usable and feasible to build. Thank you Mr. Shik, if you want to just kind of elaborate on that just to make sure there's clarity. Thank you.

Thank you. Yes. Uh that is proposed to be commercial zoning in that area allows most flexibility. Uh similar to the business general. Um the only other district that would allow more flexibility would be the corridor district which permits more residential uses, but the commercial still does permit from my recollection uh town home uh uses in that area. Thank you.

Um through you Mr. President. I apologize but um jumping back to um DBR commercial realy. Uh there is a status conference set in the court case which has been stayed for uh December 16th and that was that was set um at the time of the stay. Um so that will be here it'll be December before we know it. So, thank you. Thank you. Any other questions for the law director? Thank you.

Larry, please chief Welsh. Any questions for the chief? Thank you, Chief. Fire department. Chief Pesty. Any questions for Chief Pernesty? All right, Mr. Schneider, city engineer.

Any questions for Mr. Schneider? Mr. Farcus, chief building official. Any questions for Mr. Farcus? Mr. Oswald through you, Mr. President. Um the mayor sent out a little tidbit on um an a video that you're going to be doing. Could you explain a little bit? I think this is a real good idea, but I was just wondering if you could share that. Uh safety service director Pineowski, if you want to weigh in first.

Thank you. You I'll take that. Uh this is uh something we've started doing uh recently. It's going to communicate a lot of information from a lot of different departments. We put out a recently we put out a wastewater video kind of showing the process that takes place at the plant. Um, some of them will be larger scale like that talking about larger operations, showing people some of that, pulling the curtain back a little bit. Some of them are going to be more specific about something that's currently going on. For instance, we did a video with the street department about leaf pickup and how we'd like to see where we'd like to see leaves put and and that kind of stuff. So, this is something we're trying to do using social media and other means to communicate with the public better um on all things. And so, it's it the building department is one of many departments we're talking to right now to try and help use share useful information, address frequently asked questions, that kind of stuff. So, we met with water pumping today. Uh we're meeting with water distribution next week. And so we're putting those types of things together to to communicate to the the community specific things that are going on timely, but also to talk about city operations as a whole to show them how much goes on every day.

Okay. Thank you. Thank you, Mr. Farcus. Mr. Far, did you have anything else, Mr. Farcus? As far as Are any other questions for Mr. Farcus? Okay. Very good. Mr. Shonic, city planner. Any other questions? Mr. Oswwell,

through you, Mr. President. Um, I think we had this discussion. I didn't know if you furthered it yet. We were talking about some um how you were going to address these um Airbnbs and as far as um how you're working it. You were looking at a few different other cities. Can you explain if you've come up with anything on what the process may be?

Yes, through you, Mr. President. The uh process that we're looking at right now in the proposed draft of the zoning code is to permit them conditionally in the residential districts. Um that way there is a filter through planning commission. Uh certain criteria um are listed in the uh use definition. Um I can provide you of course with that information if you would like uh after this meeting uh tomorrow morning of course um just to further uh you know provide you with that information. Thank you. Mr. Surka,

thank you through you, Mr. President. As a followup to Mr. Oswald's question, how will that information be filtered down to the safety forces when those properties are rented out? I mean, there was just that tragedy in Bath where it was a rental home where people were shot. So, how will we communicate that to the police and fire departments that that's an Airbnb or a rental and who's responsible? Thank you. Uh through you, Mr. Chair. The um the intent behind this uh within the proposed zoning draft is for there to be almost a database for these uses. Uh currently, uh working with our law department, there is a rental registration uh that is underutilized at this time with the city. Uh the intent is for them to be registered with the city and of course that information um I believe would be shared with our safety service or safety forces within the city.

Any other questions for Mr. Shinoig?

Very good. Thank you Mr. Smallwood. Sanitation Department. Any questions for Mr. Smallwood? We will be addressing um in regards to our sanitation department in the strategic planning. So at the end of this meeting, I think that takes care of everybody, president's referrals, and remantresses. Item number one, finance. Item number two, finance. Item number three, finance. Item number four, finance. Item number five, finance. Item number six, finance. Item seven, strategic planning of finance. Item number eight, utilities. Item nine, received in place and filed in the clerk's office. Petitions and remindes from the lobby.

There are none. Petitions and remes from council members, there are none. Reports of standing of special committees, there are none. Resolutions first reading. Sponsored by finance. A resolution approving a list submitted by the safety service director for the collection of delinquent inactive utility accounts and directing the clerk of council to certify set accounts to Lorraine County auditor. Mr. Tlette. Mr. President, I ask that this resolution be passed in its first reading under suspension of rules. Second. Second by Miss Davis. Is there any further discussion? Question

on the suspension. All those in favor signify by saying I. Oppose. Nay. on the passage. All those in favor signify by saying I. I oppose. Nay. Motion carried. Resolution 2025-51. Sponsored by finance. A resolution approving the collection and demolition related costs for 330 West River Road AI Ohio for 4035 and directing the clerk of council to certify said cost to Lorraine County auditor. Mr. Mr. Tlette. Mr. President, I ask that this resolution be passed in its first reading under suspension of rules. Second. Second by Miss Davis. Is there any further discussion?

Question. On the suspension. All those in favor signify by saying I. I. Oppose. Nay. On the passage. All those in favor signify by saying I. I oppose. Nay. Motion carried. Resolution 2025-52 sponsored by finance a resolution approving the collection of of demolition related costs for 342 11th street Ohio for 4035 and directing the clerk of council to certify sid cost county auditor Mr. Tlette Mr. President and I ask that this resolution be passed in its first reading under suspension of rules. Second. Second by Miss Davis. Is there any further discussion?

Question. On the suspension. All those in favor signify by saying I. I oppose. Nay. On the passage. All those in favor signify by saying I. I. Oppose. Nay. Motion carried. Resolution 2025-53 sponsored by finance a resolution finding that the city has unfit for municipal use certain city property. Mr. Tlette. Mr. President, I ask that this resolution be passed in its first reading under suspension of rules. Second. Second by Mr. Schneider. Is there any further discussion? Question

on the suspension. All those in favor signify by saying I. I oppose. Nay. on the passage. All those in favor signify by saying I. I oppose. Nay. Motion carried. Resolution 2025-54. That's all. Res resolutions first reading. Resolutions second reading. There are none. Resolutions third reading. There are none. Ordinances first reading.

Sponsored by finance. An ordinance authorizing the safety service director of the city of Valyria to dispose of city property that is unfit for municipal use. Mr. Tlette. Mr. President, I ask that this ordinance be passed in its first reading under suspension of rules. Second. Second by Mr. Senator. Is there any further discussion? Question on the suspension. All those in favor signify by saying I. I oppose. Nay. On the passage. All those in favor signify by saying I. I oppose. Nay.

Motion carried. Ordinance 2025-18. Sponsored by finance, an ordinance authorizing the mayor to enter into a an agreement to lease real property located at 799 North Abbey Road owned by the city of Valyria and declared an emergency. Mr. Tlette, Mr. President, I ask that this ordinance be passed in its first reading under suspension of rules. Second and declared an emergency. I apologize. Does the second concur? Second concur. Is there any further discussion? Question. On the suspension, all those in favor signify by saying I. I. Oppose. Nay.

On the emergency, all those in favor signify by saying I. I. Oppose. Nay. On the passage, all those in favor signify by saying I. I. Oppose. Nay. Motion carried. Ordinance 2025-189. An ordinance amending ordinance number 2025-182 in pertinent part authorizing the adoption of the proposed 2025 compensation study completed by Gallagher Benefit Services Inc. and declared an emergency. Mr. Tlette, Mr. President, I ask that this ordinance be passed in its first reading under suspension of rules and declared an emergency. Second.

Second by Mr. Schneider. Is there any further discussion? question on the suspension. All those in favor signify by saying I. I oppose nay. On the emergency, all those in favor signify by saying I. I oppose. Nay. On the passage, all those in favor signify by saying I. I. Oppos. Nay. Motion carried. Ordinance 2025-190. sponsored by finance an ordinance authorizing the finance director to transfer funds to the specified account Mr. Tlette. Mr. President, I ask that this ordinance be passed in its first reading under suspension of rules. Second. Second by Mr. Schneider. Is there any further discussion

question on the suspension? All those in favor signify by saying I. Oppose. Nay. On the passage, all those in favor signify by saying I. I oppose. Nay. Motion carried. Ordinance 2025-191 sponsored by finance an ordinance amending ordinance number 2025-37 known as the 2025 permanent appropriations ordinance to change funds in various accounts. Mr. Tlette. Mr. President, I ask that this ordinance be passed in its first reading under suspension of rules. Second. Second by Mr. Schneider. Is there any further discussion?

Question on the suspension. And all those in favor signify by saying I I oppose nay. On the passage, all those in favor signify by saying I. I oppose. Nay. Motion carried. Ordinance 2025-192. Mr. President. Yes. Point of order. Uh I'll be stepping out for the next two readings

due to a perceived conflict. Thank you. Sponsored by finance, an ordinance to reflect updated wages for certain non-bargaining employees of the Liry Municipal Court. Miss Davis. Mr. President, I ask that this ordinance be passed on its first reading under the suspension of rules. Second. Second by Mr. Sir. Is there any further discussion portion on the suspension? All those in favor signify by saying I. I oppose nay.

On the passage, all those in favor signify by saying I. I oppose. Nay. Motion carried. Ordinance 2025-193. An ordinance amending ordinance number 2025-86 to address certain LIY municipal court employees salaries, non-elective, non-bargaining, and declare an emergency. Mrs. Davis. Mr. President, I ask that this ordinance be passed on its first reading under suspension the rule and declare an emergency. Second. Second by Mr. Sarah. Is there any further discussion? Question. On the suspension, all those in favor signify by saying I. I oppose. Nay.

On the emergency, all those in favor signify by saying I. I. Oppose. Nay. On the passage, all those in favor signify by saying I. I. Oppose. Nay.

Motion carried. Ordinance 2025-194. An ordinance amending ordinance number 2025-86. Oh, I'm sorry, wrong one. An ordinance amending ordinance number 25-97 to address the wage adjustment for certain non-bargaining classified and unclassified chapter 165 employees on account of the Gallagher compensation study and declared emergency. Mr. Tlette.

Mr. President, I ask that this ordinance be passed in its first reading under suspension of rules and declared an emergency. Second. Second by Mr. Schneider. Is there any further discussion? Question. Question's been called on the suspension. And all those in favor signify by saying I. I oppose. Nay. On the emergency. All those in favor signify by saying I. I. Oppose. Nay.

On the passage. All those in favor signify by saying I. I. Oppose. Nay. Motion carried. Ordinance 2025-195. an orance amending a codified ordinances chapter 165 employees generally section 165.33 paygrades status and declare an emergency Mr. Tlette. Mr. President, I ask that this ordinance be passed in its first reading under suspension of rules and declared an emergency. Second. Second by Miss Davis. Is there any further discussion? Question on the suspension. All those in favor signify by saying I. I oppose nay.

On the emergency, all those in favor signify by saying I. I oppose. Nay. On the passage, all those in favor signify by saying I. I. Oppose. Nay. Motion carried. Ordinance 2025-196. Sponsored by community development finance. An ordinance approving the application for the downtown historic redevelopment grant program created by ordinance 2021-31 for improvements at 353 through 361 Broad Street, AI, Ohio. Mr. Schneider. Mr. President, I ask that this ordinance be passed in its first reading under suspension of rules. Second. Second by Mr. Tlet. Is there any further discussion? Question

on the suspension. All those in favor signify by saying I. I oppose nay. on the passage. All those in favor signify by saying I. I. Opposed. Nay. Motion carried. Ordinance 2025-197. Sponsored by utilities and finance. An ordinance authorizing the mayor to enter into an agreement with util doc for utility and storm water bill processing and mailing services for the city of Ayria and declare an emergency. Miss Mitchell. Mr. President, I ask that this ordinance be passed on its first reading under suspension of rules and declared an emergency. Second by Mr. Sarah. Is there any further discussion?

Question. Questions been called. On the suspension, all those in favor signify by saying I. I oppose. Nay. On the emergency, all those in favor signify by saying I. I. Oppose. Nay. On the passage, all those in favor signify by saying I. I. Oppose. Nay. Motion carried. Ordinance 2025-198. That's all. Ordinances first reading. Ordinances second reading. There are none. Ordinances third reading. There are none.

Committee calls. Finance request the presence of the law director, safety service director, building inspector, and engineer on Monday 11:24 beginning at 6 PM. Utilities request the mayor, law director, finance director, safety service director, and engineer on Wednesday 11:19 beginning at 6 p.m. And strategic planning request the mayor, safety service director, finance director, and law director on Monday 12:1 immediately following full counsel. miscellaneous and unfinished business. I got some Mr. Armstrong for

you, Mr. President. Uh, just to address Mr. Snider's question, there's only seven days left for the compost facility that for the end of the schedule according to their flyer. Okay. Thank you. Thank you, Mr. Armstrong. Any other questions? Miscellaneous and unfinished business hearing. None. Um, Miss Mitchell. So, just so that everyone's clear here, we're going to end this meeting, then we'll go take a fivem minute recess. We'll go into strategic planning. So, I'll make a motion to adjurnn. Mr. President, seeing none, I'll make a motion to adjurnn. Full council. Second. Second by Mr. Senator. Is there any further discussion? Question. All those in favor signify by saying I. I.

This meeting is adjourned. Take a five minutes recess and we'll come back for the strategic planning meeting. I can't Okay.

On what ground?

Thank you all. Um so we're going to start the strategic planning meeting for Monday. Um, November 17, 2025. Um, this is in regards to the matter of the REA business advisory sanitation department rate study. Um, this has been kind of going on for different various aspects of this of the sanitation department uh analysis uh that's going to be presented here tonight. And then we had other privatized companies come in and give us a um their uh rates of what it would cost them to do privatizing based on the referral that was set up by the safety uh service director Pionowski. So with that being said, um I'm going to turn it over to safety service director Pionowski.

Thank you through you. Uh this what we're here to discuss tonight is the rate study done done by REA business adviserss as part of the overall sanitation department uh review that we did this year looking at operations costs um and efficiencies. Uh REA did a similar report that was delivered to council in 2018. Uh and so when looking at that report, when starting this process, a number of the issues that they reviewed were similar to things that we are discussing today. Services by and large had remained the same. Uh they were talking about the potential of building a central m a new central maintenance garage at that time, which we are still talking about um and and are moving forward with now. Uh so I thought it made sense to ask them if they could simply update the report to reflect today's numbers and uh address a couple of other topics. Um specifically looking at some of the services that the sanitation department uh provides uh and what costs associated with those particular parts of services might um look like. So Adam Lera is here from REA. He is the individual I worked with to uh have this rate study completed. Uh the rate study and he can elaborate on this but part of it was what are our costs now? What would our rates need to be in the future to address future costs? So he projected costs out to uh 5 to 8 years I think is probably as far out as he went. So that is reflected in the report. Um but trying to understand what the costs will be in the future as we continue to try and provide the sanitation service. um understanding what the rates to our residents would need to be in order to cover those costs was part of the question that he was asked to explore. So I would invite Adam Lera up to the podium to uh discuss his report um and uh go from there. Thank you.

Welcome. Please state your name and address for the record. Welcome. I don't know if it's your microphone's not

Adam Lero with Ray Business Adviserss. Uh, thank you everyone for the opportunity to present tonight. Thanks to Director Pinowski for all the work with his team on the project. Um, and just appreciate the opportunity to share with the community what we found from an agenda perspective. Uh, we'll just kind of do a quick background background overview. um as he mentioned we have kind of a unique perspective coming into this analysis and that we or at least our team did this back in the 2018 2019 time range. So we have that vantage point uh to help us. Um we'll talk about the financial methodology that we used all the data that that went into the analysis and some of the key assumptions that we used for forward-looking uh modeling. Um, then we'll get into some of the actual scenarios that that we looked at and modeled out and what the projected results of those changes would look like. And then lastly, we'll uh summarize some of the recommendations and key conclusions to consider going forward. So from a background and purpose of the study u as director Pineowski mentioned really the bottom line um costs have continued to rise. No surprise I think to anybody in this room to hear that specific to the department um those costs have continued to outpace revenues coming in. Uh this was something that was called out back in 2018 2019. um changes that were made recently have kept the department from being in an underwater position. So, uh just as recent as this year, 2025, a $5 monthly rate increase was was deployed. Um without that, there would be there would be a drastically different picture, at

least in in this year. Um and secondarily, um we know now that the public's work facility is is a go. It's going to happen. Um it's $22 million. It's not that the sanitation department is footing the bill for that, but it certainly will change their operational model going forward and they will have contributions to that ongoing. Um again as we already mentioned we looked at current rates alternative scenarios and then different strategies to ensure the longterm viability of the department. And then the reality is as well uh being that Yria is one of the few counties in or one of the few cities in Luring County that's still providing public sanitation um the city exists in a in a context where we're being compared to um privatized rates and but we're also offering a unique service uh to the county. So we just need to recognize those realities as well. As far as a little bit more in-depth uh kind of confirmation of what's going on in the department, uh that includes trash collection, recycling, brush and leaf pickup, and tree maintenance services. Um some specialized service offerings that are also offered in the community would be large item pickup and emergency tree maintenance, which is extremely valuable um based on feedback in the community and and what we hear on city council. Um, it's important to note too, and this was noted back in 2018 and 19 as well, but this department does make financial contributions to the general fund and to the water funds as well. um these are designed to offset administrative costs that that contribute to the department, but um they they do seem reasonable at

this point in time, but it's something to uh consider ongoing just to make sure that those funds those dollars that are contributed to those funds are in line with the activity that's that's supporting the sanitation fund. And and also important to note that since the 2018 study, it's there have been clear efforts made to um optimize efficiency within a department. Um some recommendations from back in that original study have been enacted. Um one of those being the the work practice of staying till the end of the shift um regardless of when routes were done and that that has had an increase on productivity in the team. So I guess bottom line here is there's good things happening, not enough to offset the costs. So let's get our arms around what the future looks like and what else can be done. From a methodology for the analysis, we looked at uh 2023 and 2024 financial statements. And um so not only could we see changes that were happening from 23 to 24, but then again we had that data from back in 2018 and 19 and what we thought could happen from then till now. So those are all useful comparison points. Uh with that we were able to do detailed cash flow projections um grouping the functional expenses into key groups and then drawing insights from that. Um along with that we also projected the net cash position of the fund. Um and the idea there is we were we were trying to not uh put the fund in a position where it's driving cash negative. But that view also you know not only just trying to have revenue in line with expense every year. But it also gives you an idea of if we're already sitting

in a positive net cash position, where does that give you some flexibility to maybe allow rates to level out for a period of time? So based on all these historical trends, uh, budgets, known inputs, we forecasted out through 2031. Purpose of this slide is really just kind of ground everybody in in the magnitude of percentage of some of the buckets of expense within the fund. So you can see between wages and and benefits and waste removal um those capture an overwhelming piece of the pie here. um wages and benefits at 47% and then when you when you account for the 6% that goes to the indirect funds uh that goes indirectly to the other funds, you know, you're well over 52% of wage related expense within the department. Um waste removal is another um significant chunk at 26%. And so um important as you get yourself grounded in those things as those expenses move a lot of uh the projections will move along with that. So the assumptions around those are very important. Another look at this just to kind of look at it in total dollars um from a 2025 projected annual spend perspective. Um so the wage and benefits buckets about 3.2 million waste removal um almost 1.8 8 million. And then to jump over to the right, another perspective to look at this from how your monthly rate as a resident would break down um proportionally. So$,572 of that monthly rate would pay for wages and benefits. 869 would pay for waste removal. And we kind of work our way down the the chart there. But all of this was just designed to get ourselves grounded on that monthly rate and and what it contributes

to. So, um, as we think about any forward-looking projection, it's it's really all in the assumptions that that go into that. Um, and like any forecast, it's going to be wrong to a certain degree, but we we try to use what we know, what we saw in the past, and known inputs to make that as educated of an estimate as possible. Um looking at those key buckets and the percentages that we did use in the model with the exception of wages and uh waste removal which had actual known contract increases for the next couple years or u as part of the collective bargaining agreement. Past that um we were able to kind of just level out those percentages that we modeled based on again what we saw in history and especially in 23 and 24. a couple of outliers around repair and maintenance and supplies. Again, just looking at history there and then with the age of the truck fleet repairs and maintenance, uh we were definitely leaning into a little bit of a conservative estimate there. Um just knowing as the trucks age, they will definitely need more maintenance. Um where you see a rate of 2.6%, that's designed to be based on uh general inflation. So inflation's pushing towards 3% right now with the latest projections. Um as you get to 2029 it would come back down uh below 2 and a half%. So that's kind of why we landed at that 2.6. But that's the scope of of forward-looking assumptions that we baked into the models. So now getting into the specific rate scenarios and some of the cost evaluations that we did wanted to highlight a few of those that that were most important in the in the conclusions. So beginning we just took um a no rate

increase scenario. So we know we know where we are from a baseline perspective on revenue. Bake in those assumptions, model that out going forward. What's that going to do to the fund? From there, we looked at a next u modest step up of 3% annual rate increase. Same thing, modeled out through 2031. Then we looked at a 5% annual rate increase. And then um ultimately what what we'll start talking about as we get into conclusions is is more of a balanced strategy. You know, there's not a silver bullet here, but um there are some things that we think will ultimately make sense. So, if we look at no planned rate increases, and I apologize, some of those figures on the bottom of that chart might be a little hard to see, but um keeping the residential rate at 3338 a month, the homestead rate at 24.87 a month, and keeping that stagnant through 2031, you can see that revenue is projected about 6.98 million, and that would stay stagnant. Again, we're assuming no rate increase and no significant change in in customers from an expense perspective between 2025 and all the way through 2031. Uh that that's where things start to get a little bit staggering and that we could be over 9.3 million in 2031 at these assumptions. So what that would do is in 2026 that's where net revenue over expense would start to flip to the negative and driving our cash position net cash position in the fund uh down to 5.1 million negative by the end of 2031. So that's where it becomes apparent that doing nothing is is probably not a great plan. So the next step up was modeling a 3% annual increase. So some positives here.

Um that would keep things net revenues over expense positive and net cash flow positive um almost through 2027. However, when we do start driving the net cash balance down 28 through 2031, the rate of acceleration would still put put the fund um in a negative cash position almost I believe almost uh 6,000 or $600,000 at that point. So, stepping up a little bit further to a 5% annual increase. Uh the positives on this approach are we never see net revenues over expense or net cash flow drive negative. Um so those are good things. On a flip side, we end up with almost 2.7 million net positive cash in the fund by 2031. So, while that's not a bad story, um there could be a situation where those rates to that degree were maybe not necessary. And while we did look at uh brush pickup and tree removal, again, one new look in this analysis was trying to get arms around the full cost of the recycling program. So when we look at the cost of landfill at about 106,000 annually, uh truck expenses, so that that's um all the fuel, all the repair and maintenance, about 295,000. um labor that assumes three drivers for those three trucks and then other overhead that gets allocated um from all the

other expenses. We we assumed a roughly 30% um across those three trucks which is about 30% of the fleet. So when you bring all that together and noted that the overhead's a significant assumption there, but you start to look at the cost of the recycling program and it's $1.6 million to the fund every year, which is a is about a 24% of total expense to the fund. When you look at tonnage for recycling, recycling is less than 5% of total tonnage. So it's just the reality of it's just the nature of recycling service. it's extremely uh more expensive compared to the tonnage that that flows through the the program. Um, one slice on this was considering if there was a reduction or a removal of the recycling program, what kind of savings could be realized? Um, so this is probably where there's maybe a little bit um probably probably larger assumptions than in any other part of the analysis. But in this situation, we would say, you know, not all of that tonnage goes away. Probably 20% gets diverted to the landfill. So you wouldn't eliminate all the landfill costs. From a truck perspective, we said, you know, maybe one of those trucks gets repurposed. So you wouldn't remove all that expense. um from a labor perspective, you know, maybe there's another role for that driver for a driver to stay on board. So, you wouldn't eliminate all of that. And then we assumed, you know, only 30% of that overhead could be reduced. So potentially the ability to reduce by $750,000 by not having a recycling program. But um honestly, you know, we all we all know the value um of the of the program from a contribution to sustainability and

things like that. So, it wasn't necessarily that we were looking at actually, you know, ripping that program out, but it's just important to understand the scope of the costs that are associated with that. As we noted at the beginning, um, and this is just some additional perspective of privatized rates around the the community. Um, you can see, you know, anywhere from the 20 to $27 range is is out there from from private offerings. Um, also it was, you know, it is very obvious and continues to be very obvious that there are things that that this program provides to the community that a private service really wouldn't without without charging more. So, um I think it's it's pretty well known that anyone can call and get something picked up and there's never going to be, you know, a raise to a rate and and they're going to get a higher level of service than than what you would get with with some of these private rates. But, you know, it is a comparison that will always be out there. So, moving into some recommendations and conclusions. Again, looking at some of those projections, not being proactive did not seem like a a prudent approach. So, what we what we did ultimately recommend is a 5% annual increase over the next three years. Um, the idea here is we saw the projections that that definitely puts the fund in a solid position. Also gives room for uh flexibility and and agility and decision- making at that point that is not going to leave the fund behind the eightball and trying to play catch-up. So starting with the 3% if any one of

those assumptions around cost increases wildly outpaces then we're in a position where we might be needing to catch up again and then it's oh we're at three now we need to go to five potentially. So starting at five, we have reasonable projections puts the fund three years out in a position where maybe they can scale back um but not having to play catch-up, which is a position that everyone would like to stay out of. Um continuing to focus on cost control measures. So again, we saw we saw the size um and magnitude of wages and waste disposal in the fund. Um everything should be continued to be monitored and and um looked at for either slowing cost increases or opportunities to bring them down. But those are two buckets of of focus. You know, if if those can be contained, then that will help not outpace the rate increases. Maintenance optimization is always going to be an ongoing focus. Um, so with nine trucks in the fleet and they they continue to age and um I I didn't note this earlier, but also baked into the model, we've got about 450,000 in annual capital spend for new equipment. So maintaining those at the most optimal level is always going to be an important measure to control those costs. And part of the recommendation here is that the fund monitor that capital you're spending, but then also monitor that maintenance spend alongside of that. Um because if if we're doing well at maintenance, we should be more efficient with the capital side as well. And lastly, um again noting the fund reimbursements. So as those are structured today, there's there's nothing about them that seems

unfair, but it's just uh something to keep in front of everybody and understand the the methods behind those. So it's 5% of the revenue collected automatically goes to general fund and then it's 2% I believe of the water funds um admin wages allocated to billing. So, I think it's just important to keep an eye on those and make sure that those indirect allocations are still in line with the support that that the sanitation fund gets. So, if we kind of put this into three buckets going forward, again, we mentioned the rate increase, but it's it's proactive financial planning. So, it's it's continuing to monitor this. It's continuing to stay ahead of it um and not finding ourselves in a position where we've got to slap a $5 increase on um all at once. Uh continuing to look at optimizing the services and and and having a level of transparency on where those costs are going. And then ongoing community engagement. I know that director Pineowski talked about some of those initiatives uh with digital and social media, but it's ultimately making sure that that rate that is being charged is still providing the value that that is perceived by the residents and and kind of with those three pillars, we think we can stay stay ahead of it and keep things in a responsible position. So with that, I'll open up to any questions.

Is there any questions regarding the study, Mr. Klette? Through you, Mr. President. Um, at this time, um, I'd like to make a motion to maintain our sanitation department as is, and I would refer the rates to finance committee for final review. Then we could go to question for discussion. Well be well you already have a motion on the floor for that. So someone would have to second but there's people who have questions to ask prior to your motion. So motion's on the floor. Someone has to second it. Second.

Motion made by Mr. Tlette, second by Miss Mitchell. Discussion Mr. Oswald.

You Mr. President. So lately in the city of Valyria, we've had a lot of develop new developments, a lot of homes. So we're going to have increased service. Does that help us or does that hurt us? You know, when you're talking about um picking up the deliveries and stuff, is it like better to have more customer, you know, does that have anything to do with your stud, you know, in the study? We didn't model in any any population growth, any significant population growth, but obviously more customers, more revenue coming in. We would have to really we really have to bake that into how does it fit into the rates because it's not it's probably not a one for one or the same in every part of the city, I would imagine. So, I know there was just a rate study done, but I think you I think we'd really have to model out, you know, specifically where that new development is. The the customer base is easy. It's, you know, however many people or however many accounts times the new rates, but then where does that model into routes and what it would actually add from an expense perspective? That would probably be a little bit more in-depth look.

Okay. Thanks, Mr. Schneider. Through you, Mr. President. This is sort of on the same topic as Mr. Oswald this all of these projections are based on the routes staying the way they are with no adjustments because I know we had discussed making some route adjustments and I don't know if the director can uh talk about that as well. Yeah, this analysis didn't change any route structure.

Go ahead and answer that Mr. Ponowski through you. Uh yeah, we did do a route study as well with a separate separate company um and they did provide two options. One is maintaining our routes as currently structured. The other is um would require about 10% of our customers to switch to pickup day. And that's the biggest consideration. And if we do that, uh we'd be able to eliminate two and a half routes on Tuesdays and Wednesdays with our current construction or our current number of customers. Uh so it' be two uh it'd be a trash route, a bulk, excuse me, a trash route, a recycling route, and half of a bulk route on Tuesdays and Wednesdays. That is something in consideration. However, uh that would save us, you know, the driver would still come to work. We just assign him something else, maybe brush that day or something. It's one less truck on the street or two less trucks on the street. Um so we're saving on fuel and wear and tear on the truck. So I didn't try to I didn't want to complicate his ex, you know, his exploration here further because they were also we're kind of doing both at the same time as well, but it's only going to put us in a better position. And so, um, and and I think that, you know, going back to Councilman Oswald's question, you know, I think some of it is the the the adding more customers within our current customer confines of the city. It's it's going to help offset some of those overhead costs and it's going to help um, you know, it's it helps spread it out a little bit further, but we're not growing terribly much further than we already are unless we start annexing some large pieces of property. So right now where we're at, those customers are going to be within our um service area. It's if we expand our service area and keep going out that I think the cost to to travel further is what gets a little more complicated. Um so I I think that that would actually be a positive thing for us as we continue to uh add customers as long as they're within our current service area. Uh kind of he drew us a circle around where we work at.

Thank you,

Mora. Oh, did you have any more followup, Mr. Mora? Thank you through you. Um my questions are related to the same kind of thing. Your review is based on the customerbased count of 2024. So now we're in 2025 and I'm guessing we're adding several homes a a week a month. Um, I'm curious and obviously you don't have it at your fingertips right now, but what the households were in the 2018 and 19 study because there would be some ratio of increase that was recommended then based on counts and based on growth, but probably in 2018 and 19, the annexing of all the property on Indian Hollow, uh, the ones out on um 113 the the the new homes that are where the schools were um because those are all our pickups. So I I am curious about the count and

I think there is a tradeoff between adding more customers and adding the costs for more customers and changing how we do that how we either new truck more trucks or more personnel. Um so I would be curious as to what the numbers were previously to see if there's some correlation. Got it. Um, yeah, I know we were I know the number now is in the range of it was close to 18,000 total accounts, but I can I can get you the prior one as well.

Thank you. And through you, Mr. President. Um the only other question I have that's really not in the study is you know we have now hundreds of homes we are collecting sanitation and sewer charges but not water charges from. And I just wonder if that influences the revenue stream at all. That probably wasn't something that you even looked at because now we have lots of homes that we are collecting the garbage and we provide sewer to, but we don't provide water to. And so therefore, we don't really have a control when the bills aren't paid. They have to be sent over for collection, which we just did tonight. So, I think that all of those factors as council moves forward with every what whatever decision is made, you might want to think about those as well. Um, do those factor into our revenue stream? I'm not sure, but I do think that it should be noted. Thank you.

And the thought there is just understanding collectibility on those accounts. Is that is that would that just help you understand? I'm I'm sorry through you could repeat that your micro into the microphone. I was trying to understand the what that would help inform would it be the collectibility on the sewer and the sanitation accounts because you don't have water as as kind of a lever to drive that. Correct. Through the president. Yeah. Correct. We we can't turn that off. We could stop picking up. Um but I I'm not sure that that that doesn't help. Sure. Um it's just that that is sort of a new nuance to our business model.

Okay. That is growing exponentially that we didn't have in the past. It wouldn't have existed as much in 19 and 1819. Okay. Got it. So it's just something that I think is more of an asterisk than a major piece of this. Got it. Thank you, Miss Mitchell.

Thank you, Mr. President. through you. I know a conversation we never want to have is getting rid of recycling because there are some people that do recycle and they do it correctly and they do it religiously. But then there are some people who use the recycling bin as the trash bin and from what I understand is if so much of the load in recycling is contaminated then that costs us money. So maybe I'm just throwing this out there. Maybe a thing is that we get rid of recycling or we better educate people about how to recycle or we look at having a central recycling location, but it's costing us money. So it maybe doesn't make sense to do is all I'm saying. Thank you.

Mr. Pineowski, if you want to weigh on

Yes. Thank you. through you. We've had a lot of conversation about recycling. Um something has to be done about it. Uh there's a couple of options, some which you've already identified. All of them have pros and cons. Um but we absolutely have to do better at the recycling process, keep the costs down there. Um I think that my impression is that the majority of the residents would like that program to continue. Um I don't know that to be sure. I haven't surveyed them, but um that's my impression. Um, and if we discontinued, I think they would probably expect a cost reduction to their rates, which would probably be a fair expectation. We've talked about dumpsters at our parks that people could take their recycling to and put in. We have concerns about people dumping all their stuff there then. So, that's how do you monitor that? We've talked about an opt-in option. You you want recycling, you pay a little bit more. You don't, you don't. And so, keeping track of that, we'd probably have to hire a full-time administrator to look at that possibility. Uh, you know, to keep track of all that, the signups, the disconnection. So that some uh Cleveland did that. So we've looked at that. We've looked at um an education program. How do we simplify it? Make it as simple as we could possibly can. Give me these five things and don't put them in a bag. Right? If you do that, we don't have contamination. But getting through to the people that you've uh mentioned that might use that trash can as a second trash can is challenging. We have a lot of people in this community that um might not be committed to uh the rules or might not be familiar with them. So, it's a constant education of people that might be coming into the community and then an enforcement. We have to essentially go around and check cans and if your can ain't right, we got to turn it around so the driver knows not to pick it up. So, it's it's a it's a large undertaking to to to fix it. And it's going to whatever we do with recycling in the next, you know, um it's going to be a big focus. Recycling is going to be a big f focus for the next year. But we have had conversations about options and

deciding the best option. I've met with the county. I've met with solid waste. Um where we've explored a lot of things. So um if we move forward with the sanitation department consistent with the motion that uh Councilman Tlette has made, uh we will put together a plan and we've had a lot of conversations about that options.

Mr. Oswald for you, Mr. President. So, I'll throw in one one more suggestion because we're going to have that nice central maintenance garage and we're going to have a lot of space and um I think the idea when we were first talking about this having mechanics that can work on all the different vehicles, there's going to be a lot of ways that we can manage to save money by having this building. So, it's going to be good. But even if you have a drop off center within our confines where they bring their bag of recycling and then it's checked in and then thrown in. I don't know if that's way more work than we want to do, but then we can see what's going in rather than having a dumpster at a park where they just throw whatever they want in. So my only two cents. Thanks.

Thank you through you, Mr. President. Uh, it's an interesting idea. Um, I think that instead of doing that, I would recommend people take their recyclables to the solid waste facility on South Abe, which we've also talked about with the county and otherwise, and they do take some of the recyclables. You know, if we put it at CMG, uh, that's not convenient to some people in different sides of town. Um, I think that we've seen, I'll use the, um, compost facility as an example every once in a while on social media. Why don't they take my grass clippings? Well, you can take them right there. Well, I know why why I have to take them anywhere, right? So, I think that we've got some of that feedback that most people don't want to have to work too hard to to to have that service. So, it's an interesting idea and one that we could we could look at. Um, but, you know, uh, especially if we were to have drop off locations, maybe including that as one, but there there is no perfect answer, unfortunately. Um, it's gonna it's just going to take a lot of effort to, uh, try and clean that up.

Mr. Schneider, I guess through you, Mr. President uh to director uh Pleski or um safety service director Pionowski. I know we have some um budget items in here for capital improvements. May do you foresee in the next two three years um any truck purchases that we need to go through anything of a of that exceeds that estimated threshold that they have based on what we have in the inventory? Thank you.

Through you, Mr. President. Uh uh when talking with um Adam about this report, it would be my suggestion that we have a uh in the budget every year a line item uh in the amount of $400 to $450,000 for capital purchase. We currently have six, I believe it's six of our sidearm trucks that are original purchase from when we went to this system. And so they're at about 12 years old and their lifespan from the manufacturer is suggested 8 to nine. So, you know, congrats to our maintenance people that are keeping them on the road, but yeah, we need to make an investment in trucks and we need to make an investment in this department to make sure that they're successful. Um, and that's part of what the rate conversation would need to be at at the finance committee meeting, uh, should we move forward with this. Um, but my plan would be each year to buy a truck, right? So, 400 $450,000 gets us a side loader. A rear loader is about 300,000. And so each year to buy a truck and and and and utilize that capital line item which will be in the budget each year to do so.

Think I have one more Mr. Schneider. Uh just to piggy back a little bit. This might be more directed towards director um Pleski on the um marijuana money. I know this like we probably still don't know. Do we have any projection as to what we're going to receive? Just so we could potentially explore some capital improvements through that fund because I think we may get one potentially large payment and then down the line smaller payments. But please, if you have any information on that, let us know. Thank you.

Through you, Mr. President. Uh no, I do not have any uh idea yet what our initial um deposit will be, but keep in mind that that money will be receded and accounted for in the general fund, not any enterprise fund. So I mean obviously the general fund can spend money on any other type of operation that could be used for sanitation, but um it it will be accounted for in the general fund when we do get it. Thank you. Mr. Arsen, before I go, Law Director Derry, then I'll have you go. Law Director Derry,

thank you for you, Mr. President, to piggyback a bit on what finance uh director Pleski said, uh I noticed on this the pie chart or I guess I would say the wheel chart. Um is one of these categories is it specifically encompass I guess capital needs, new purchases? I know there's a big chunk that is maintenance and repair, but what about for I guess new expenditures for instance, you know, having to replace a truck. Sure. Yeah. So that from a from an annual expense perspective, it's in that depreciation figure there. Okay.

Um and then that uh the spend itself was modeled out through the cash position. Sorry. So as that cash leaves, we modeled that in. And and if I may through you, uh, Mr. President, because Director Plesky and I, we've had this conversation several times recently, not so recently, as as Director Pleski said, I mean, there's nothing wrong or improper or or dare I say illegal about using general fund money to to make these capital expenditures. I know recently we used ARPA money. So, uh, we've used, uh, what we, uh, familiarly call issue six money to make these capital expenditures. But ideally, as as Ted has pointed out to me, ideally, when you're using, you know, we have an enterprise fund, um, in in an ideal world, and I realize we're in the real world, but ideally, this fund should be able to uh cover those capital expenditures. Um, so that's just something to to bear in mind.

Mr. Armstrong, then Miss Davis, through you, Mr. President. Uh, Director Pleski, don't we have a truck, a new truck on order already that we've already purchased? Through you, Mr. President. I believe all the trucks are now in. We've ordered three with the American Rescue Plan Act monies and I believe we purchased three with the half percent income tax monies. I believe they're all in. I could be incorrect, but I'll refer to uh Director Pinowski. I uh yeah, through you, Mr. President. I do believe they've all been delivered. Um it's fire trucks we're waiting on.

I can tell you they're all paid for, so Miss Davis

uh through you um on the special service that I noticed on the schedule. Um if you want to go back there, if not, I'm just going to tell you that I didn't I noted that the senior pickup is very valuable, very valuable to the seniors in this city. And we don't ever want to see that go away. I'm getting older myself and I know I'm going to need that service. So, uh I know that when something is in is not in writing, I want people to know that the seniors of Ayria appreciate that special pickup. So, the truck comes down, they got to get out of their truck, go up to those homes and pick it up for the scene, which we are grateful for. And I know that that would never happen in another service. Only the city of Valyria do that. Mr. Tlette,

thank you through you, Mr. President. Uh, great point. The other thing that why would refer the rates to finance was so that we could also examine the homestead rates at the same time. I think that's a very very important part if we whatever increase we would put on to maintain uh our services that we need to look at that homestead rate as well. Thank you

Mr. Pinowski. Thank you. Just to clarify the homestead rate is a multiply is multiplied against the the base rate. So whatever that discount is um it would automatically go. But I do think it would be helpful to go to finance committee and have some conversation about the rates consistent with the report that Mr. um that Adam has provided us and I would appreciate that opportunity. Mr. Orca,

thank you through you. Perhaps council will consider if we are going to get money from the marijuana adult marijuana sales. We sort of suspend the practice of subsidizing the other salaries in the general fund. And if you did that for a short period of time, that's enough to shore up sanitation for truck purchases. if you're going to because you indicated to Mr. Schneider that that money would go into the general fund which is fine but then that means that we wouldn't have to do the reimbursements from sanitation to the general fund for the salaries of safety service or law director's office or whatever is they're being used for now. So that might be something that should be part of the finance committee's study of the rates. Um because even if you suspended it for three, say you did it for two two or three cycles, that would be enough to build up cash volume for purchasing equipment.

Mr. Pleski, through you, Mr. Chair. Um, all good points, but just remember what I reported earlier today that we've spent over 2 million more than what we brought into the general fund as is. So, um, we have to clear that situation up first, I think. So,

and that's to my point. When I brought this to council about a year ago, we had this study done for privatizing the department. It's nothing against these individuals and they the phenomenal job uh and the work that they do and the efforts that they do. It's never it's never about that. It's looking at the bottom line of this and based on what I was seeing here. So in 2028 if we choose to go the 5% the city city of Valyria just for the sanitation was 38.64 as compared to Republic's estimate was $20.51. So that's a difference of $18.13 in the residential rate and the homestead rate for the city of Valyria is 2879 and for the homestead rate for the Republic service would be $1528. Now when this comparable was made it was mirrored to what the city of a yria does and ask republic or the other companies to mirror what we do. I think on Facebook I think there's been a shortcoming of people having mistruths about the the uh not the recycling but the um I forget I was using my train of thought but it's in regards to the the bulk pickup. They do the bulk pickup just like anybody else does over and through there but they never had an opportunity to express their what they had over and through here. I respect everything here my colleagues are saying and I agree with a lot of all that but at 2020 2028 you're going to have to revisit these rates. These rates aren't ever going to go down. They're are going to continue to go up and and that's what makes the competition what that is. I just think that you know you're continue to purchase vehicles, you're continue to

pion maintenance, gas, salary and wages. They're all going to continue to go up and then whether this metric shows that for this 5% but come year after 2028 you're going to have to come back. Maybe it might be a lesser amount but you're going to have to come back with rate increases for the residents. One question that I was asked at the last meeting was, okay, so by the year end here, you're going to have a close to a 38 $39 weight wage increase just for sanitation, but you're going to have a combination of the sanitary, the wastewater, and the water. Did did this administration come up with that amount what it would be for those combined? that was asked at the last meeting about what those combined rates were going to be like if you did sanitary water and the sanitation rate. I thought Mr. Schneider asked that question what that number would look like based on that. So I guess if that's something that we can get at the next meeting when it referred over and through there and then I can't remember I think this coming year we're going to have a 16% increase on the water rates for 26. Is that correct?

Through you Mr. Chair. I believe it's 15% for water and three I think for sanitary sewers. Okay. 3%.

I think that's probably be vital for the next finance meeting so that we could have those rates together. And I think that that's what we're talking about the vehicles. I think there were good comments about, you know, where these funds we're paying them from, if this is all going to come from this rate increase or it seems like might be a kind of a combination of everything until we, you know, put this in a line of where this direction is going to end up going. But it's nothing against your the employees that are here. I just see that it's going to continue to go up. And um I think we just need to in my opinion looking at that. I think this is how the comparison was laid out when we had Republic and those other companies looking at it. I understand there's going to be other people who are paid out of these funds, but that's how I feel. I can't support this. Um so with that all being said, if there's any other questions or other discussion,

I'll call for the question. So if you want to read the motion again. Is everyone clear on the motion that was made by Mr. Mr. Tlet if you still want to make the motion then or read? I I do. Uh it is to maintain our current sanitation department and rates to be referred to the f to finance committee for final review. There's been a motion. A second and a second by Miss Mitchell. Is there any further discussion? Question. All those in favor signify by saying I.

I oppose. Nay nay the eyes have it. So based on that I guess uh when the f when the administration has those numbers together when you want to bring it back to uh the finance committee for further discussion over there. I thank you for your coming up here and uh with this study and updating this report. Um if there's obviously there's any questions more that I'm going to have to go through the finance uh the safety service director u we'll ask you those questions. If there's nothing more to come before this committee, I'll entertain a motion to journ. Some

move second. All those in favor signify by saying I. I. Meeting is adjourned. Thank you.