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HomeMy WebLinkAboutBOARD STANDING COMMITTEES - 02292016 - Internal Ops Cte Min            INTERNAL OPERATIONS COMMITTEE SPECIAL MEETING February 29, 2016 11:00 A.M. 651 Pine Street, Room 101, Martinez Supervisor John Gioia, Chair Supervisor Candace Andersen, Vice Chair Agenda Items: Items may be taken out of order based on the business of the day and preference of the Committee              1.Introductions   2.Public comment on any item under the jurisdiction of the Committee and not on this agenda (speakers may be limited to three minutes).   3. INTERVIEW candidates for the At Large #1, At Large #2 and Public Member Alternate seats on the Integrated Pest Management Advisory Committee and DETERMINE recommended appointments for Board of Supervisors consideration. (Tanya Drlik, IPM Coordinator, Health Services Department)   4. CONSIDER approving nominations to reappoint Frank Gordon to the General Public seat, Tim Bancroft to the General Public Alternate seat, Jim Payne to the Labor #2 seat and Tracy Scott to the Labor #2 Alternate Seat; and reassign Usha Vedagiri from the Environmental Organization #3 Alternate seat to the Environmental Organizations #2 seat on the Hazardous Materials Commission. (Michael Kent, Executive Asst. to the Hazardous Materials Commission)   5. CONSIDER approving the proposed plan and schedules for the recruitment to fill one seat each on the Contra Costa County Employees' Retirement Association Board of Trustees, the County Planning Commission, and the Contra Costa County Fire Protection District Advisory Fire Commission that will become vacant on June 30, 2016; and three seats on the Contra Costa Resource Conservation District Board of Directors that will become vacant on November 30, 2016. (Julie DiMaggio Enea, IOC Staff)   6. CONSIDER accepting report on the status of the development of a waste hauler ordinance and PROVIDE direction to staff on next steps. (Marilyn Underwood, Environmental Health Director & John Kopchik, Conservation & Development Director)   7. CONSIDER recommending that the Board of Supervisors direct staff to take the 1 7. CONSIDER recommending that the Board of Supervisors direct staff to take the necessary actions to obtain electrical load data from PG&E, work with interested cities to conduct a technical feasibility study of CCE in this county, and acquire additional consulting services through completion of the technical study, if authorized. (Jason Crapo, Conservation and Development Department)   8. CONSIDER accepting report on the Auditor-Controller's audit activities for 2015, and approving the proposed schedule of financial audits for 2016. (Joanne Bohren, Chief Auditor)   9. CONSIDER approving 2016 Internal Operations Committee meeting schedule and work plan. (Julie DiMaggio Enea, IOC Staff)   10.The next meeting is currently scheduled for March 28, 2016.   11.Adjourn   The Internal Operations Committee will provide reasonable accommodations for persons with disabilities planning to attend Internal Operations Committee meetings. Contact the staff person listed below at least 72 hours before the meeting. Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the County to a majority of members of the Internal Operations Committee less than 96 hours prior to that meeting are available for public inspection at 651 Pine Street, 10th floor, during normal business hours. Staff reports related to items on the agenda are also accessible on line at www.co.contra-costa.ca.us. Public comment may be submitted via electronic mail on agenda items at least one full work day prior to the published meeting time. For Additional Information Contact: Julie DiMaggio Enea, Committee Staff Phone (925) 335-1077, Fax (925) 646-1353 julie.enea@cao.cccounty.us 2 INTERNAL OPERATIONS COMMITTEE - SPECIAL 3. Meeting Date:02/29/2016   Subject:CANDIDATE INTERVIEWS: INTEGRATED PEST MANAGEMENT ADVISORY COMMITTEE Submitted For: William Walker, M.D., Health Services Director  Department:Health Services Referral No.: IOC 16/5   Referral Name: ADVISORY BODY RECRUITMENT  Presenter: Tanya Drlik, Integrated Pest Management Coordinator Contact: Tanya Drlik 925.335.3214 Referral History: In June 2014, the IOC reviewed Board Resolution Nos. 2011/497 and 2011/498, which stipulate that applicants for At Large/Non Agency-Specific seats on specified bodies are to be interviewed by a Board subcommittee. The Resolutions further permit a Board Committee to select a screening committee to assist in interviewing applicants for appointment. Upon review of the eligible seats, the IOC made a determination that it would conduct interviews for At Large seats on the following bodies: Retirement Board, Fire Advisory Commission, Integrated Pest Management Advisory Committee, Planning Commission, Treasury Oversight Board, Airport Land Use Commission, Aviation Advisory Committee and the Fish & Wildlife Committee; and that screening and nomination fill At Large seats on all other eligible bodies would be delegated each body or a subcommittee thereof. Referral Update: The Integrated Pest Management (IPM) Advisory Committee was established by the Board of Supervisors in November 2009 to advise the Board regarding the protection and enhancement of public health, County resources, and the environment related to pest control methods employed by County departments. The IPM Committee has eight voting members as follows: two ex-officio members (Health Services Department and County/Unincorporated County Storm Water Program) and six public members (one Public and Environmental Health Advisory Board representative, one County Fish and Wildlife Committee representative, one Environmental Organizations representative, and three At Large appointees); plus one Public Member Alternate seat. Terms of office for the At Large and Alternate seats reviewed by the Internal Operations Committee have recently been extended from two to four years at the direction of the IOC. The Environmental Organization, and At Large 1-3 seats will become vacant on December 31, 3 2015. Attached is a letter from the IPM Committee transmitting the three applications received from the recruitment for the four vacancies, and describing the recruitment process, and the current Committee roster.  Recommendation(s)/Next Step(s): INTERVIEW the following candidates for At Large #1, At Large #2 and Public Member Alternate seats on the Integrated Pest Management Advisory Committee and DETERMINE recommended appointments for Board of Supervisors consideration: Larry Brunink, Concord Susan Captain, Moraga Kelly Davidson, Clayton James Donnelly, Danville Nati Flores*, Antioch Wayne Lanier, PhD, Walnut Creek Justin B. Sinclaire, Clayton Fiscal Impact (if any): No fiscal impact. Attachments Candidate Application_IPM_Larry Brunink Candidate Application_IPM_Susan Captain Candidate Application_IPM_Kelly Davidson Candidate Application_IPM_James Donnelly Candidate Application_IPM_Nati Flores Candidate Application_IPM_Wayne Lanier Candidate Application_IPM_Justin B. Sinclaire 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 INTERNAL OPERATIONS COMMITTEE - SPECIAL 4. Meeting Date:02/29/2016   Subject:NOMINATIONS TO THE HAZARDOUS MATERIALS COMMISSION Submitted For: William Walker, M.D., Health Services Director  Department:Health Services Referral No.: IOC 16/5   Referral Name: Advisory Body Recruitment  Presenter: Julie DiMaggio Enea Contact: Michael Kent (925) 313-6712 Referral History: In 2013, IOC reviewed Board Resolution Nos. 2011/497 and 2011/498, which stipulate that applicants for At Large/Non Agency-Specific seats on specified bodies are to be interviewed by a Board Committee. The IOC made a determination that it would conduct interviews for At Large seats on the following bodies: Retirement Board, Fire Advisory Commission, Integrated Pest Management Advisory Committee, Planning Commission, Treasury Oversight Board, Airport Land Use Commission, Aviation Advisory Committee and the Fish & Wildlife Committee; and that screening and nomination fill At Large seats on all other eligible bodies would be delegated each body or a subcommittee thereof. The IOC delegated the screening and nomination of Hazardous Materials Commission candidates to the Commission. Referral Update: The term for numerous seats on the Hazardous Materials Commission expired on December 31, 2015, creating vacancies. The Commission recruited and interviewed candidates for the vacant seats and makes nominations to the IOC to fill the seats, as explained in the attached transmittal letter. Recruitment materials and candidate applications are attached for information. Recommendation(s)/Next Step(s): APPROVE Hazardous Materials Commission nominations to appoint the following individuals to the Commission to terms ending on December 31, 2019: Action Nominee Seat Nominated By Reappoint Frank Gordon General Public Commission Reappoint Tim Bancroft General Public Alternate Commission 37 Reassign Usha Vedagiri Environmental Organizations #2 Commission Reappoint Jim Payne Labor #2 Central Labor Council Reappoint Tracy Scott Labor #2 Alternate Central Labor Council Fiscal Impact (if any): No fiscal impact. Attachments Transmittal_Hazardous Materials Commission Nominations Candidate Application_HMC_Frank Gordon Candidate Application_HMC_Timothy Bancroft Candidate Application_HMC_Usha Vedagiri Candidate Application_HMC_Charles Davidson Candidate Application_HMC_James Payne Candidate Application_HMC_Tracy Scott Env Seat Flyer Env Seat Press Release Gen Pub Flyer Gen Pub Press Release USW Nomination Letter 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 INTERNAL OPERATIONS COMMITTEE - SPECIAL 5. Meeting Date:02/29/2016   Subject:RECRUITMENT PLAN FOR SCHEDULED RETIREMENT BOARD, PLANNING COMMISSION, ADVISORY FIRE COMMISSION AND CC RESOURCE CONSERVATION DISRICT BOARD VACANCIES Submitted For: David Twa, County Administrator  Department:County Administrator Referral No.: IOC 16/5   Referral Name: ADVISORY BODY RECRUITMENT  Presenter: Julie DiMaggio Enea, IOC Staff Contact: Julie DiMaggio Enea 925.335.1077 Referral History: The Board of Supervisors has directed the IOC to personally conduct recruitment and interviews of applicants for At Large seats on the Contra Costa County Fire Protection District's (CCCFPD) Fire Advisory Commission, the County Planning Commission, and the Board appointees to the Contra Costa County Employees' Retirement Association (CCCERA) Board of Trustees and the the East Contra Costa County Fire Protection District Board of Directors. Additionally, the Board of Supervisors has directed the IOC to recruit on behalf of the Contra Costa Resource Conservation District (CCRCD), which is governed by a Board of Directors appointed by the County Board of Supervisors and regulated under Division 9 of the California Public Resources Code.  On June 30, 2016, the terms of Board of Supervisors Appointees #4 seat on the CCCERA Board of Trustees; the At Large #2 seat on the County Planning Commission; and the At Large #1 seat on the CCCFPD Fire Advisory Commission will expire. On November 30, 2016, the terms of the President, Director 1 and Director 3 seats on the Contra Costa Resource Conservation District (CCRCD) Board of Trustees will expire. Referral Update: It is important that the IOC develop a recruitment schedule that permits the Board of Supervisors to make its appointments prior to the effective dates of the new seat terms. The proposed recruitment schedule for the CCCERA Board of Trustees, the County Planning Commission, the CCCFPD Fire Advisory Commission is shown below:  March 4 Issue press release advertising vacancies April 8 Application Deadline for vacancies (5 week application period) April 25 IOC Committee Meeting: Screen applications and determine interview format* April 26-May 6 Staff to schedule all interviews for May 23 May 23 IOC Committee Meeting: Interview candidates for the vacancies June 14 and/or 21  Board of Supervisors Meeting: Board consideration of IOC recommended appointments and/or interview of finalists for Retirement Board July 1 All appointments take effect The proposed recruitment schedule for the CCRCD Board is shown below:  August 29 Issue press release advertising vacancies September 30 Application Deadline for vacancies (5 week application period) October 1-10 Staff to schedule interviews for October 24 October 24 IOC Committee Meeting: Interview candidates for the vacancies November 1 or 15 Board of Supervisors Meeting: Board consideration of IOC recommended appointments December 1 All appointments take effect *It may be impractical for the IOC to individually interview all applicants. The IOC may need to screen applications to reduce the pool of candidates to be interviewed and use group interviews if there remain a large number of candidates for each body. Staff intends to do an initial screening of applicants against the specifications for each seat and will provide initial recommendations to the Committee for any applications that should be rejected. Also attached for the Committee's information is a listing of all advisory body seats that are screened by the Internal Operations Committee and their current status, according to the Board Appointive List maintained by the Clerk of the Board's Office. Recommendation(s)/Next Step(s): 64 APPROVE the proposed plan and schedules for the recruitment to fill one Board of Supervisors seat on each the Contra Costa County Employees' Retirement Association Board of Trustees, the County Planning Commission and Contra Costa County Fire Protection District Fire Advisory Commissions that will become vacant on June 30, 2016, and three seats on the Contra Costa Resource Conservation District Board of Directors that will become vacant on November 30, 2016. Fiscal Impact (if any): None. Attachments 2016 IOC Interview and Screening Responsibilities for 2016 65 IOC ADVISORY BODY CANDIDATE SCREENING AND INTERVIEW RESPONSIBILITIES2016Per BOSPer BOS ResResoIOCAdvisory or Regional Legislative BodyCounty "At Large" SeatStaff ContactInterview Interview 2011/498 Airport Land Use Appointee 1 BOS 5/2/2020 Jamar Stamps, DCDInterview Interview 2011/498 Airport Land Use Appointee 2 BOS 5/6/2019 Jamar Stamps, DCDReview Interview 2011/497 Aviation Advisory At Large 1 2/28/2018 Natalie Oleson, PWReview Interview 2011/497 Aviation Advisory At Large 2 3/1/2017 Natalie Oleson, PWInterview Interview 2011/498 Contra Costa County FPD Fire Advisory Commission At Large 16/30/2016Vicki WisherInterview Interview 2011/498 Contra Costa County FPD Fire Advisory Commission At Large 2 6/30/2018 Vicki WisherInterview Interview 2011/498 County Connection Citizens Advisory County seat6/18/2015Diane Bodon, 925‐256‐4720Interview Interview 2011/498 East Bay Regional Parks District AdvisoryAppointee 112/31/2016Pfuehler Erich, EBRPD (510) 544‐2006N/A Interview N/A East Contra Costa Fire Protection District Board of DirectorsBOS Seat 12/4/2018 Hugh HendersonN/A Interview N/A East Contra Costa Fire Protection District Board of DirectorsBOS Seat 22/4/2018 Hugh HendersonInterview Interview 2011/498 Employees Retirement Assos. Bd of Trustees (CCCERA)BOS Appointee 46/30/2016Gail Strohl/Julie EneaInterview Interview 2011/498 Employees Retirement Assos. Bd of Trustees (CCCERA)BOS Appointee 56/30/2017 Gail Strohl/Julie EneaInterview Interview 2011/498 Employees Retirement Assos. Bd of Trustees (CCCERA)BOS Appointee 66/30/2017 Gail Strohl/Julie EneaInterview Interview 2011/498 Employees Retirement Assos. Bd of Trustees (CCCERA)BOS Appointee 96/30/2017 Gail Strohl/Julie EneaInterview Interview 2011/498 Employees Retirement Assos. Bd of Trustees (CCCERA)BOS Appointee Alternate6/30/2017 Gail Strohl/Julie EneaInterview Interview 2011/497 Fish & WildlifeAt Large 112/31/2018 Maureen Parkes, DCDInterview Interview 2011/497 Fish & WildlifeAt Large 212/31/2018 Maureen Parkes, DCDInterview Interview 2011/497 Fish & WildlifeAt Large 312/31/2016Maureen Parkes, DCDInterview Interview 2011/497 Fish & WildlifeAt Large 412/31/2016Maureen Parkes, DCDInterview Interview 2011/497 Fish & WildlifeAt Large Alternate12/31/2016Maureen Parkes, DCDInterview Interview 2011/497 Integrated Pest ManagementAt Large 112/31/2019Tanya DrlikInterview Interview 2011/497 Integrated Pest ManagementAt Large 212/31/2019 Tanya DrlikInterview Interview 2011/497 Integrated Pest ManagementAt Large 312/31/2018Tanya DrlikInterview Interview 2011/497 Integrated Pest ManagementPublic Member Alternate12/31/2017Tanya DrlikN/A Interview N/A Local Enforcement Agency Independent Hearing Panel (Solid Waste) At Large 3/31/2018 Dorothy Sansoe/Enid MendozaN/A Interview N/A Local Enforcement Agency Independent Hearing Panel (Solid Waste) Public Member   3/31/2018 Dorothy Sansoe/Enid MendozaN/A Interview N/A Local Enforcement Agency Independent Hearing Panel (Solid Waste) Technical Expert 3/31/2018 Dorothy Sansoe/Enid MendozaInterview Interview 2011/497 Planning Commission At Large 1 6/30/2018 Hiliana Li, DCDInterview Interview 2011/497 Planning Commission At Large 26/30/2016Hiliana Li, DCDInterview Interview 2011/497 Treasury OversightBOS Member4/30/2016Rusty WattsInterview Interview 2011/497 Treasury OversightPublic 14/30/2018 Rusty WattsInterview Interview 2011/497 Treasury OversightPublic 24/30/2018 Rusty WattsInterview Interview 2011/497 Treasury OversightPublic 34/30/2016Rusty WattsReview Review 2011/498 Affordable Housing Finance Community 16/30/2017 Kara Douglas, DCDReview Review 2011/498 Affordable Housing Finance Community 26/30/2018Kara Douglas, DCDReview Review 2011/498 Affordable Housing Finance Community 36/30/2016Kara Douglas, DCDReview Review 2011/498 Affordable Housing Finance County 16/30/2017 Kara Douglas, DCDReview Review 2011/498 Affordable Housing Finance County 26/30/2018Kara Douglas, DCDReview Review 2011/498 Affordable Housing Finance County 36/30/2016Kara Douglas, DCDReview Review 2011/498 BBK Union Cemetery Distict Bd of Trustees (if needed) Trustee 1 12/31/2018 Lea CastleberryReview Review 2011/498 BBK Union Cemetery Distict Bd of Trustees (if needed) Trustee 2 12/31/2017 Lea CastleberryReview Review 2011/498 BBK Union Cemetery Distict Bd of Trustees (if needed) Trustee 3 12/31/2017 Lea CastleberryInterview Review 2011/497 Hazardous Materials Env Engineering Firms 12/31/2017 Michael KentInterview Review 2011/497 Hazardous Materials Env Engineering Firms Alt12/31/2017 Michael KentInterview Review 2011/497 Hazardous MaterialsEnv Organizations 112/31/2017 Michael KentInterview Review 2011/497 Hazardous MaterialsEnv Organizations 1 Alt12/31/2017 Michael KentInterview Review 2011/497 Hazardous MaterialsEnv Organizations 212/31/2019Michael KentInterview Review 2011/497 Hazardous MaterialsEnv Organizations 2 Alt12/31/2019 Michael KentInterview Review 2011/497 Hazardous MaterialsEnv Organizations 312/31/2016Michael KentInterview Review 2011/497 Hazardous MaterialsEnv Organizations 3 Alt12/31/2016Michael KentATTACHMENT "A"2014 IOC  designated these seats for in‐person interview by IOC.66 IOC ADVISORY BODY CANDIDATE SCREENING AND INTERVIEW RESPONSIBILITIES2016Per BOSPer BOS ResResoIOCAdvisory or Regional Legislative BodyCounty "At Large" SeatStaff ContactATTACHMENT "A"Interview Review 2011/497 Hazardous Materials General Public12/31/2019Michael KentInterview Review 2011/497 Hazardous Materials General Public Alt12/31/2019Michael KentInterview Review 2011/498 Housing Authority Board of Commissioners Tenant #1 (age 62 or above)3/31/2016Joseph VillarrealInterview Review 2011/498 Housing Authority Board of Commissioners Tenant #23/31/2016Joseph VillarrealReview Review 2011/497 Law Library Bd of Trustees Member of the Bar12/31/2016Carey Rowan, Sup CourtInterview Review 2011/498 Mosquito & Vector Control District Bd of Trustees At Large 1 1/2/2019 Allison Nelson or Craig DownsInterview Review 2011/498 Mosquito & Vector Control District Bd of TrusteesAt Large 21/2/2017Allison Nelson or Craig DownsInterview Review 2011/498 Mosquito & Vector Control District Bd of TrusteesAt Large 31/2/2017Allison Nelson or Craig DownsReview Review 2011/497 Public & Environmental Health Adv BdAdolescent School Age5/31/2017 No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdCentral County At Large 15/31/2019No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdCentral County At Large 25/31/2019No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdConsumer 15/31/2017No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdConsumer 25/31/2017No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdEast County At Large 15/31/2016No staff assignedReview Review 2011/497 Public & Environmental Health Adv Bd East County At Large 25/31/2017No staff assignedReview Review 2011/497 Public & Environmental Health Adv Bd Environmental Health5/31/2017No staff assignedReview Review 2011/497 Public & Environmental Health Adv Bd Family & Children 5/31/2018No staff assignedReview Review 2011/497 Public & Environmental Health Adv Bd General At Large 15/31/2015No staff assignedReview Review 2011/497 Public & Environmental Health Adv Bd General At Large 25/31/2015No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdImmigrant5/31/2017No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdPrivate Medical Community5/31/2017No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdSeniors Issues5/31/2018No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdVoluntary Health Agencies5/31/2016No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdWest County At Large 15/31/2015No staff assignedReview Review 2011/497 Public & Environmental Health Adv BdWest County At Large 25/31/2016No staff assignedInterview Review 2011/498 Resource Conservation District Bd of TrusteesDirector 111/30/2016Hunter Teresa, RCD, (925) 672‐6522Interview Review 2011/498 Resource Conservation District Bd of TrusteesDirector 211/30/2018 Hunter Teresa, RCD, (925) 672‐6522Interview Review 2011/498 Resource Conservation District Bd of TrusteesDirector 311/30/2016Hunter Teresa, RCD, (925) 672‐6522Interview Review 2011/498 Resource Conservation District Bd of TrusteesPresident11/30/2016Hunter Teresa, RCD, (925) 672‐6522Interview Review 2011/498 Resource Conservation District Bd of TrusteesVice President11/30/2018 Hunter Teresa, RCD, (925) 672‐6522Interview Review 2011/498 Western CC Transit Auth Bd of DirectorsCrockett12/31/2017Jamar Stamps, DCDInterview Review 2011/498 Western CC Transit Auth Bd of DirectorsCrockett Alt12/31/2016Jamar Stamps, DCDInterview Review 2011/498 Western CC Transit Auth Bd of DirectorsRodeo 12/31/2017Jamar Stamps, DCDInterview Review 2011/498 Western CC Transit Auth Bd of DirectorsRodeo Alt12/31/2016Jamar Stamps, DCDKey:  currently vacantwill have a 2016 vacancyfilled2014 IOC delegated interview responsibility to the respective advisory body, with a referral of the resultant nomination to the IOC .67 INTERNAL OPERATIONS COMMITTEE - SPECIAL 6. Meeting Date:02/29/2016   Subject:WASTE HAULER ORDINANCE Submitted For: William Walker, M.D., Health Services Director  Department:Health Services Referral No.: IOC 16/8   Referral Name: Waste Hauler Ordinance  Presenter: Marilyn Underwood & John Kopchik Contact: Marilyn Underwood (925) 692-2521 Referral History: On May 8, 2012, the Board of Supervisors referred to the Internal Operations Committee a review of the Waster Hauler Ordinance in order to address a number of problems with illegal haulers including:  complaints that illegal haulers have been hired by private parties to remove refuse, and some of these companies have subsequently dumped the collected material along roadways and on vacant lots. incidents in which the Sheriff's Department found refuse haulers with improperly secured loads, which pose a hazard to motorists if items fall onto roadways. haulers that have been found transporting the collected materials to illegal transfer stations that have not undergone the required zoning, environmental, and permitting review, and pose significant threats to public health and the environment. haulers that have been found collecting residential or commercial garbage in violation of local franchise agreements. haulers that are not posting the bond required by Contra Costa County Ordinance Section 418-2.006. This bond is intended to ensure compliance with applicable laws. It is questionable if illegal haulers carry liability insurance, and they may not be in compliance with tax or labor laws. The Internal Operations Committee held several discussions on this matter over the last four years, during which substantial work and change in the scope of the draft ordinance occurred. The IOC requested Environmental Health staff to work with the County Counsel to develop a final draft ordinance for circulation to stakeholders for comment, and then for consideration by the IOC. Work on the ordinance was suspended for several months in 2014 but resumed in early 2015. Recent discussions have focused on reconciling the ordinance with the County's existing franchise agreements, if and how the initial scope of the ordinance should or could be expanded or limited, exemptions to the ordinance, and how and by whom the ordinance could effectively be enforced. At the most recent IOC discussion in October 2015, the Committee directed County Counsel and staff to prepare a final draft ordinance for IOC review in February 2016, and decided to address the enforcement aspect of the ordinance separately. Supervisor Gioia asked for a commitment 68 from the franchises to raise fees sufficient to fund enforcement of the ordinance countywide. Mr. Evola reiterated his offer to fund one third of the cost of a CSO. Referral Update: Attached is a report prepared jointly by the Directors of Environmental Health and Conservation and Development on the status of the development of a waste hauler ordinance and transmitting the current version of the ordinance. Also attached is a recapitulation prepared by the County Counsel on how the current version of the Ordinance compares to the October 2015 version. The status report includes a discussion regarding enforcement of the proposed ordinance. Undersheriff Mike Casten has been invited and plans to attend the meeting to discuss the roles of the Sheriff and California Highway Patrol may have in enforcing the ordinance and related enforcement issues. Recommendation(s)/Next Step(s): ACCEPT report on the status of the development of a waste hauler ordinance and provide policy direction to staff. Attachments Staff report prepared by Environmental Health and Conservation & Development Departments on Waste Hauler Ordinance Exhibit A: DRAFT Waste Hauler Ordinance as of Feb 2016 Exhibit B: County Counsel Memo re Comparison of Feb 2016 Ordinance to Oct 2015 Ordinance Exhibit C: County Wastehaulers Franchise Area Map 69 Page 1 of 17  JOINT STAFF REPORT TO THE INTERNAL OPERATIONS COMMITTEE Contra Costa Environmental Health and Department of Conservation & Development February 29, 2016 I. INTRODUCTION To prepare for bringing this matter back before the Internal Operations Committee (IOC), a fair amount of staff time and internal discussions have been dedicated to the issues discussed in this report. Over the past several months, a multi-departmental staff team has diligently gathered information, collaboratively worked through issues and several draft versions of the ordinance which collectively shaped the revised version of Chapter 418-2 now being presented. Below is a brief overview of this collaborative staff effort: Multi-departmental staff team includes the Directors and lead staff members from CCEH and DCD as well as staff contacts from County Counsel’s Office and the County Administrator’s Office (CAO). The entire team met three times, once in November, again in December and then again in February. Additionally, key staff members from DCD, CCEH and County Counsel’s office have had numerous phone meetings more frequently during the same several month period in order to discuss and identify means to address specific issues in much greater detail so that County Counsel’s office could finalize the revised Chapter 418-2 being presented to the IOC. Since the October 2015 IOC meeting, staff from DCD and CCEH have been in communication with County franchise representatives on several occasions to discuss the proposed ordinance or related franchise issues. II. POLICY ISSUE FRAMEWORK TO FACILITATE MOVING FORWARD AND FORMULATION OF RECOMMENDATIONS A. Distinction Between Ordinance and Related Issues – During the course of the IOC’s consideration of the potential ordinance revisions to Chapter 418-2 referred by the Board of Supervisors in 2012, other policy issues have been raised which are related to, but extend beyond the scope of the ordinance. Now that the IOC is being presented with the recommended Chapter 418-2 language, it is possible to clearly identify those issues which are not expected to be addressed in ordinance. Staff has identified these non-ordinance policy issues in this report in order to potentially facilitate discussion of distinct recommendations the IOC may decide to make to the Board of Supervisors regarding the referred ordinance versus the other related issues. Staff has grouped these related non-ordinance policy issues into two categories, Franchises and Enforcement. 1. Policy Issues are Inter-related – Although technically beyond the scope of what ordinance revisions would address, these other non-ordinance policy issues are inter-related to varying degrees. The inter-relationships significantly add to the 70 Page 2 of 17  complexity of the potential problems and solutions. Furthermore, the manner and sequence in which each issue is ultimately addressed can dictate and limit options to address other policy issues. 2. Proposed Approach for Moving Forward – Although it is possible (and probably helpful) to take some actions that help move forward with addressing non-ordinance policy issues on a ‘parallel track’ if desired by the Board, there are others which cannot because they are contingent upon factors that dictate the applicable sequence and timing. Non-ordinance policy issues are grouped and further discussed below in sections pertaining to Franchises and Enforcement. Additionally, to the extent that staff has identified factors that dictate sequence/timing specific to an issue/action such has been noted in the applicable section. 3. Separating Issues and Taking Next Steps – Staff recommends that, to the extent possible, immediate action on the ordinance and further action on the related policy issues be pursued on separate, parallel tracks in order to simplify, and clarify, discussion of the issues. For the IOC’s consideration, staff is providing the following list of potential next steps to move forward on these policy issues in the near term. Most of these next steps are discussed in more detail in subsequent sections of this staff report as are additional potential actions that the County may consider in the future (medium and far term). a. Ordinance – Potential Future Actions: i. Consider recommending that the Board approve the revised version of Chapter 418-2 attached as Exhibit A, which requires that the bond amount be specified in a fee resolution to be adopted by the Board, and specify whether the ordinance effective date should be timed to coincide with the Board’s consideration of the fee resolution and/or the minor County franchise amendments described in Section IV.A.4.a. ii. If the revised Chapter 418-2 ordinance is approved by the Board of Supervisors, CCEH will perform the following activities: o Develop application form in consultation with DCD. o Develop a fee schedule for refuse haulers. o Notify refuse haulers, Chambers of Commerce, local building and code enforcement departments, etc. of the new ordinance. o Process permit applications (including notifying the special districts and DCD of applications). o Inspect and issue permit stickers to compliant vehicles. o Investigate any reports of violations. o Conduct field surveillance, including at illegal transfer stations. b. Franchising/Franchises – Potential Future Actions: i. When transmitting recommended Ordinance to the Board, identify separate recommendation about possibly amending three of the County’s franchises to clarify Industrial Waste definition in three franchises and add 71 Page 3 of 17  wording clarifying the applicability of the exclusivity exception for property clean-up service providers. (see Section IV.A.4 of this report ) ii. Consider recommending that the Board direct to staff to proceed with issuance of 5-Year Rule notices required for the County to have the option to potentially amend franchises to expand exclusivity in the future. (see Section IV.A.7.iii of this report) c. Enforcement – Potential Future Actions: iii. Consider requesting that County franchise haulers reach out to law enforcement agencies in each Contra Costa city they currently serve to help raise awareness and discuss potential enforcement of Public Resources Code Sections 41950, 41951 and 41955 pertaining to the theft of residential and commercial recyclables prior to collection (described in described in Section IV.B.4.a.ii.A. III. REVISED ORDINANCE: CHAPTER 418-2 The proposed ordinance (attached as Exhibit A) has been revised significantly over the past several months. The attached Memorandum from County Counsel’s office (attached as Exhibit B) identifies what changes have been made to the Draft Ordinance version presented to the IO Committee in October 2015 as well as a brief explanation of the reason for each change. The proposed ordinance would, in the view of staff, constitute a marked improvement over current regulation of Chapter 418-2 of the County Ordinance. It is however important to understand the challenges that will be faced in implementing the ordinance. A. Enforceability There are issues related to potentially overlapping regulatory authority that may significantly impact the implementation of a revised refuse hauler ordinance. Specifically, potential conflicts with ordinances adopted by other local non-County franchise agencies (discussed in Section III.B below ) or their respective franchise agreements (discussed in Section IV.A.2). The interrelated complexities associated with implementing a waste hauler permit system in areas where waste collection is already governed by multiple different local agencies pursuant to separate franchise agreements granting varying degrees of exclusivity are expected to pose significant enforceability challenges. Staff may discover that there are other local agency adopted ordinances governing certain waste hauling activities that will introduce further unforeseen implementation and/or enforcement complexities. Existing franchise agreements involve variables that do not allow for any permitting uniformity and increase the complexity of permit systems design which directly compromise the ordinance’s enforceability. This lack of permitting uniformity that is necessitated by existing franchises, diminish the usefulness and effectiveness of the County issued decals as simple stand-alone compliance indicators. Although the lack of a decal is a visually obvious clue that hauler does not have a permit, it does not mean that the unpermitted hauling activity constitutes a violation of the ordinance. 72 Page 4 of 17  There are numerous types of unpermitted hauling activities that would not violate Chapter 418-2, such as a roofer hauling old roofing materials from his own jobsite or a non-profit organization transporting donated source-separated recyclables (both of which are exempt from the ordinance) or an independent hauler with a load of household refuse picked up from within a city (not subject to the ordinance). Permits will authorize hauling of only certain waste types from customers located within a defined permit-specific territory – which may be further limited by customer type (e.g. only residences). The readily visible decal makes it relatively easy to spot permitted hauling vehicles, which only proves that permitted hauler has authority to haul at least one type of waste from somewhere in the unincorporated area. It is expected that law enforcement could not play a significant role because they would generally not have the probable cause necessary to stop haulers solely because they do not have decal. Most likely complaints will be the primary way that CCEH will become aware of haulers that may be providing waste collection that violates their permit. In most cases, further investigation or follow-up by CCEH will be necessary to determine if the hauler is in compliance with the ordinance. However, though these obstacles exist, the ordinance will provide a basis for taking enforcement actions that prevent harmful activities, such as illegal dumping. B. Other Local Agencies with Authority to Regulate Waste Collection To date, the local agency ordinances received and reviewed by staff do not appear to pre-empt or limit ordinance implementation. An ordinance adopted by the Central Contra Costa Solid Waste Authority (CCCSWA) established their existing permit system applicable to construction and demolition (C&D) debris transporters operating within that Central County territory. The boundaries of the CCCSWA include five incorporated city areas as well as surrounding unincorporated areas. The four other district managed franchises include only unincorporated areas of the County as shown in the Map attached as Exhibit C. Staff is not aware of any other hauler permit systems being implemented in the unincorporated areas. Locally adopted ordinances pertaining to waste collection that are in effect for non- County franchise areas, could possibly limit the effectiveness of Chapter 418-2 as proposed to be revised or maybe even pre-empt the County’s authority to implement the revised ordinance altogether. The proposed ordinance acknowledges that other local agencies exercise their own regulatory authority over waste collection within their jurisdiction which will ideally be adequate to avoid any conflicts with ordinances adopted by those local agencies. CCEH has reached out to these non- County franchise agencies seeking information about any applicable ordinances that they may have adopted. CCEH staff has identified two local franchise agencies which have adopted ordinances related to waste hauling (CCCSWA and Mt. View Sanitary District ) and confirmed that a third agency has not adopted any such ordinances (Kensington Police Protection and Community Services District). Unfortunately, at the time this staff report was prepared, the remaining two local agencies had yet to respond (Rodeo Sanitary District and Byron Sanitary District). 73 Page 5 of 17  Upon receipt of any additional non-County ordinances pertaining to waste hauling, staff may find that there is critical regulatory conflict necessitating that the County work more closely with the applicable non-County franchise agency(ies) in order for the County to exercise any regulatory authority over waste collection within their jurisdictional franchise areas. If this occurred, CCEH staff would strive to identify and overcome any barriers in order to obtain the agency’s consent to implement the ordinance as written within their jurisdiction. If issues related to overlapping regulatory authority were to result in substantially limiting or restricting implementation of Chapter 418-2 in one or more non-County franchise areas, The Board of Supervisors may wish to further revise Chapter 418-2 to include only those requirements which can be implemented more uniformly and effectively enforced on a consistent basis.    IV. NON-ORDINANCE POLICY ISSUES A. Franchise Agreements - There are nine separate Franchise Agreements which govern the collection of waste and recyclables, each covering different portions of the unincorporated County area. Four of the nine Franchises are administered by the County (County Franchises) and the other five are each administered by other local public agencies (Non-County Franchises). See map attached as Exhibit C for delineation of the County’s four franchise areas as well as the five non-County franchise areas. 1. County Franchises govern collection services provided to approximately 53% of the total unincorporated population. Following is a breakdown for the four County Franchises:  Allied Waste Systems, Inc. (Allied) primarily serves Central County customers (approximately 9% of the total unincorporated County population)  Crockett Garbage Service serves Crockett, Port Costa and Tormey (approximately 2% of the total unincorporated County population)  Garaventa Enterprises primarily serves East County customers (approximately 20% of the total unincorporated County population)  Richmond Sanitary Service (RSS) primarily serves West County customers (approximately 21% of the total unincorporated County population) 2. Non-County Franchises administered by the following five local public agencies govern services provided to approximately 47% of the total unincorporated population:  Central Contra Costa Solid Waste Authority/RecycleSmart – Joint Powers Authority responsible for waste and recycling programs for Alamo, Blackhawk, Contra Costa Centre, Diablo, Tassajara and unincorporated areas in the vicinity of Danville, Lafayette, Moraga, Orinda and Walnut Creek. 74 Page 6 of 17   Byron Sanitary District– Special District solely responsible for a portion of Byron  Kensington Police Protection and Community Services District – Special District solely responsible for collection services in Kensington  Mt. View Sanitary District – Special District responsible for unincorporated Martinez areas as well as some land near Pacheco Blvd. and Arnold Dr.  Rodeo Sanitary District– Special District solely responsible for collection services in Rodeo 3. Interrelationship between Franchises and Ordinance/Permit System Collection of waste and recyclables is currently regulated almost exclusively by franchises administered by local agencies. There are a number of franchise- specific variables which are interrelated with key ordinance provisions in Chapter 418-2. These interrelationships and the need to avoid potential permit/franchise conflicts add a fair amount of complexity the overall permit system. Understanding the complexities involved with these interrelated variables can also help provide insight as to the overall approach to Chapter 418-2. Franchise exclusivity can be complicated because it depends on the franchise and at least two if not more variables. The franchise exclusivity variables include geographic area (which franchise area), the type of waste generator (such as residence), the type of waste (such as yard waste or construction and demolition waste), the type of business arrangement (free pick-up or fee for service) as well as any related services (clippings resulting from gardening). 4. Actions Related to Franchises to aid Ordinance Implementation Following is a discussion of related non-ordinance policy issues associated with the franchise agreements: a. Avoid issuing permits that conflict with County Franchises i. Minor clarification type amendments to three of the County’s Franchise Agreements [Separate/Parallel Track] Industrial Waste – The recommended revisions to Chapter 418-2 does not define Industrial Waste. However, it is in effect defined by the wording of the applicable proposed Exception in Section 418-2.008(e) which says “solid waste that is generated in a mechanized manufacturing process or at a publicly operated treatment works”. Only one of the County’s four franchises (RSS) includes “publicly operated treatment works” in its Industrial Waste definition, therefore it may be worthwhile to amend the County’s other three franchises to add publicly operated treatment works to their definitions. ii. Minor clarification type amendments to all four of the County’s Franchise Agreements [Separate/Parallel Track] On-site Clean-up / Junk Removal Services – Consistent with earlier discussions, amending the exclusivity exception applicable to remodeling 75 Page 7 of 17  and gardening in the County’s franchises will help facilitate consistent regulation of hauling by on-site clean-up (junk removal) services under the new permit system that would be implemented following the adoption of revisions to Chapter 418-2. The Franchise Agreements will also need to clarify that hauling performed in conjunction with other clean-up services (intended to be subject to the permit requirement in Chapter 418-2) fall under the franchise exclusivity exception applicable to contractors and landscapers as long as any collection and transport by on-site clean-up service providers is solely for solid waste they were hired to physically remove, load, transport and reuse, recycle or dispose. iii. Referral Process for County Franchises: [Ordinance Implementation] CCEH proposes to implement an application referral process to facilitate coordination with County and Non-County Franchising Agencies (discussed in greater detail in the following section). DCD will act as the recipient agency for referrals pertaining to the four County Franchises for the purpose of reviewing Hauler Permit Application referrals in order to provide CCEH with determination about any applicable conflicts with County Franchises. b. Avoid issuing permits that conflict with Non-County Franchises i. Recommended Ordinance Language: County staff provided substantial comments on the revised Hauler Ordinance with the intent of trying to ensure that Permits would not be issued if the proposed hauling services would conflict with exclusive rights granted to a Franchise Hauler. ii. Permit System Design: County staff also expects to rely quite heavily on the design of the permit system that would be implemented if the revised Hauler Ordinance is adopted to further facilitate consistency with existing Franchise Agreements administered by the County or five other local agencies (JPA and Special Districts) to govern the collection of waste and recyclables throughout the unincorporated County. I. Franchise Agency Referral Process – CCEH will implement a referral process to facilitate coordination with Franchising Agencies for the purpose of avoiding issuance of permits which conflict with their respective franchises. Currently there is no comprehensive centralized map delineating the exact boundaries of each of the nine unincorporated area Franchise Service Areas (Exhibit C of this report is a general map of these Service Areas). For the sake of efficiency and thoroughness, CCEH plans on referring copies of each application to all six Franchising Agencies (including DCD for all four County Franchises as mentioned above). Eventually, staff’s ultimate goal would be to develop a Geographical Information System (GIS) electronic mapping layer that precisely depicts each of the Franchise Service Areas. II. Permit Applications - CCEH and DCD will work together on developing the application forms to help ensure that applicants are 76 Page 8 of 17  required to provide the type of information needed to make determinations regarding potential conflicts with the County’s Franchises. The complexity of the Franchise related variables involved necessitate that the Permit Applications will require applicants to provide a significant level of detail about the hauling services for which they are seeking a permit. A. Application forms will require the applicant to clearly identify the exact boundaries of the territory they are seeking approval to serve and the type of waste generator (location) they propose to collect from (e.g. residential, commercial, light industrial, heavy industrial, or governmental). B. Applications will also need to identify what waste types they would like to collect (if not the same for all generator types, they will have to specify waste types by generator type). C&D debris/material will distinguished as one of the waste types. C. Applications will need to identify which types of solid waste are to be collected in conjunction with on-site clean-up services (which might involve any type of solid waste) separately from the types of solid waste that could/would be hauled solely as a collection service (meaning customers would be removing waste from their property and loading the containers themselves). The intent being that Permits issued for waste types which the County’s Franchisees have been granted the exclusive right to collect would only authorize collection and transport by on-site clean-up service providers and solely for waste they were hired to physically remove, load, transport and dispose/recycle. III. Franchise Agency Determinations - Upon receipt of a new application, CCEH will refer a copy of the application package to the six Franchising Agencies and request they provide a determination about any proposed hauling services which conflict with their Franchise within a specified 30-day review period. If no response is received after the 30-day review period, CCEH will proceed with the permitting under the presumption that it would not violate their franchise. 5. Amending Franchises to Possibly Expand Exclusivity in the Future (Separate from Ordinance Implementation County franchise hauler representatives (stakeholders) initially raised this issue at the IOC meeting held in April 2015. These stake holders advocated for amending three of the four County franchises to provide franchisees with the exclusive privilege to collect C&D debris, similar to what is provided for in the County’s Franchise Agreement with RSS. This issue was brought up in workshops that CCEH hosted for stake holders in May 2015 to discuss revising the ordinance as well as being discussed at the July 2015 and October 2015 IOC meetings. 77 Page 9 of 17  However, exclusivity privileges in franchise agreements are a stand-alone issue, different from revising the ordinance and as such warrants its own separate process. Since this exclusivity issue was not part of the Board’s referral to the IOC, DCD staff has identified the need to obtain direction from the Board of Supervisors prior to moving forward. Although franchise exclusivity was raised as a potential ordinance issue, it is significant policy issue extending beyond the scope of the referral with implications unrelated to illegal dumping. The IOC and County staff have appropriately been focused on ordinance-specific issues. Therefore, this important matter has yet to be afforded the attention it deserves. Conceptual support for this idea has been expressed by members of the IOC at their July and October meeting, however that was in the absence of receiving or reviewing any analysis or recommendations from staff. Staff is providing some additional details regarding this policy issue in this report to facilitate more detailed discussion or referral to the Board of Supervisors, if so desired.  Chapter 418-7: County Code Chapter 418.7 entitled “Franchises for Solid Waste Collection, Disposal and/or Recycling Service” is the ordinance applicable to County franchises. Franchises are not governed by Chapter 418-2. As such, in order to expand this exclusivity, staff proposes this issue be delineated from the proposed Hauler Ordinance and addressed separately through its own process.  Assessing the Relative Merits of Franchise Exclusivity as Compared to Alternative Regulatory Approaches (C&D): Waste collection activities are primarily regulated at the local government level via permits or franchise agreements. Permits and franchises can be either exclusive or non-exclusive. Some agencies limit the number of permits that can be issued or franchises that can be in effect, others impose more extensive permit conditions (including diversion requirements) or impose on-going fee (somewhat like a franchise fee). Each of these approaches ha their upsides and their downsides, so which is the best can be quite subjective as it depends upon the circumstances and the goals/needs of the agency involved. Staff recommends the Board of Supervisors consider the advantages and disadvantages of various approaches as it provides direction to staff on potentially negotiating amendments to existing franchises. As explained previously, only the RSS Franchise provides exclusivity for hauling C&D debris. This difference was not an unintentional oversight but instead it was the policy decision made at the time. It is also worth noting that one major difference the RSS Franchise has from the County’s other three franchise agreements is that it was drafted and approved roughly two to three years prior to the others. County staff learned from this initial franchise negotiation and later implementation of the RSS Franchise, the valuable experience and ability to adapt and improve future franchise agreements. One valuable difference was ensuring that the scope of the exclusivity provision would more closely adhere to the franchise requirement in County 78 Page 10 of 17  Code Chapter 418-7 “Franchises for Solid Waste Collection, Disposal and/or Recycling Service”. See Table 1 below for a comparison of potential benefits of various collection system options which is part of a report that was prepared in 2012 by a consultant hired by the County (complete report available upon request). Staff has identified some information gathering tasks in Section IV.A.7 that should yield additional updated data that should help supplement the consultant’s findings in their report. 79 Page 11 of 17  Table 1. COMPARISON OF POTENTIAL BENEFITS OF COLLECTION SYSTEM OPTIONS   Collection System Options   Ability to Generate Additional Fees Additional AB 939 Diversion Opportunities Impact on Illegal Dumping (1) Potential Impact to Rate Payers   Ease of Administration Open-Market Options Traditional Open-Market Options     Unregulated Open- Market System (EXISTING – 2015)     None     D   None     D May increase relative to other options if unregulated "fringe haulers" illegally dump collected materials D Potential for lowest rates for some haulers   A     None     A     Regulated Open- Market Permit System With Limited Permit Requirements (PROPOSED ORDINANCE)     Can require basic permit fees (e.g., set amount and/or fee per truck)     B   Can require material be diverted but difficult to enforce     B May be reduced relative to Unregulated Open- Market System as a result of greater regulatory oversight.   B   Potential for lower rates relative to Closed-Market Options     B       Low       B Enhanced Regulated Open-Market Options     Regulated Open-Market Permit System with Enhanced Permit Requirements       Can establish and collect permit fees (based on tonnage, gross revenues or other factors)     A       Can require minimum diversion levels or that material be delivered to certified facilities         A     May be reduced relative to Unregulated Open- Market System as a result of greater regulatory oversight       B       Rates likely to be relatively higher than Open-Market Options due to Permit requirements       C             Highest           D   Regulated Open-Market Non-Exclusive Franchise with No Limit on the Number of Franchised Haulers   Can establish and collect franchise fees (based on tonnage, gross revenues or other factors)   A Closed-Market Options     Closed-Market with a Limited Number of Non- Exclusive Franchised Haulers           Can establish and collect franchise fees           A         Can require minimum diversion levels or that material be delivered to certified facilities           A     May be reduced relative to Open- Market Options due to stricter operating requirements that may eliminate "fringe haulers"         B Rates likely to be relatively higher than Open-Market Options due to Franchise requirements C     Highest     D     Closed-Market with a Single Exclusive Hauler (EXCLUSIVE FRANCHISE) Rates may be somewhat higher than Non-Exclusive Franchise due to lack of market pressures; but less so if competitively bid. C       High       C (1) Greater regulatory control would be expected to reduce any illegal dumping by certain "fringe haulers" assuming they no longer operated, but any associated increase in rates may result in increased illegal dumping by waste generators.   Legend Most Preferable Option   A   More Favorable   B   Less Favorable   C Least Preferable Option   D SOURCE: 2012 Consultant Report  80 Page 12 of 17  6. Process Required to Expand Franchise Exclusivity There is a mandatory noticing period and process that must be completed in order to authorize the County to proceed with any franchise amendments which would grant any new or expanded exclusive waste collection privileges. Section 49520 of the California Public Resources Code (PRC), states in part, “If a local agency has authority, by franchise, contract, license, or permit, a solid waste enterprise to provide solid waste handling services1 and those services have been lawfully provided for more than three previous years, the solid waste enterprise may continue to provide those services up to five years after mailed notification to the solid waste enterprise by the local agency having jurisdiction…”. This requirement is often referred to as the “5-Year Rule” and the details are discussed briefly below. a. 5-Year Rule – It is County staff’s position that the 5-Year Rule applies to this issue of amending Franchise Agreements to expand exclusivity to haul C&D material. If the County wants to implement an exclusive franchise system, or a non-exclusive franchise system that limits the number of haulers through permits (i.e. an “approved list”), it must issue the required notices to those haulers that have lawfully been providing service for more than three years and then wait five years before implementing said change. Any solid waste enterprise “lawfully providing” service means that waste hauler is in substantial compliance with the terms and conditions of its franchise, contract, license, or permit. The PRC also defines a solid waste "License" as a license issued by a local agency or a business license issued by a local agency if the local agency has not established any other form of authorization for the lawful provision of solid waste handling services. Technically, only certain hauling services are subject to the permit requirements of County Chapter 418-2 or the franchise/contract requirements in Chapter 418-7. Companies that haul C&D material are not obligated to obtain a franchise or permit pursuant to County Code Chapter 418-7. The County does not actually issue permits under Chapter 418-2 (existing Hauler Ordinance) nor has the requirements of that Chapter been actively enforced by the County since Chapter 418-7 was enacted. Therefore, any waste hauler who has a business license may be operating lawfully. b. 3-Year History of Business Licenses for Noticing – DCD staff has obtained listings of all unincorporated area business licenses issued in the past three years from the County Tax Collectors Office. The average number of business licenses issued annually in the past three years is about 3,800 per year with a total of 11,500 licenses. Staff compiled the three years of data into one master list to facilitate more efficient analysis and data scrubbing (consolidate applicable records and purge non-applicable license data) for the purpose of deriving a more manageable list of enterprises for 5-year noticing purposes.                                                              1 The PRC defines Solid waste as “…all putrescible and nonputrescible solid and semisolid wastes, including  garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned  vehicles and parts thereof, discarded home and industrial appliances, manure, vegetable or animal solid or  semisolid wastes, and other discarded solid and semisolid waste.”  81 Page 13 of 17  Only business that have had valid business licenses for the entire 3 year period need be included, however the list can be further reduced by removing businesses known not provide waste hauling services, such as banks or retail stores At the time this staff report was prepared, this data scrubbing effort was underway but a fair amount of work was still needed to eliminate more of the non-applicable businesses from the consolidated master list. Staff will continue working on this in anticipation that the IOC and Board may wish to proceed with issuance of 5-year notice to maximize the County’s decision making flexibility for the future. c. Starting the clock – In order to initiate the start of the 5-year Rule clock, notices must be mailed to those businesses that have been lawfully providing waste hauling services for at least three years. The IOC may wish to recommend to the Board that they direct staff to move forward with the 5- year notices. There is no significant risk for doing so as it would not obligate the County to take any specific action in the future. However, it would provide the County with added flexibility in the future and the intervening period can be used to gather additional information as well as further study potential benefits and consequences of various approaches to amending the County’s Franchise Agreements to expand exclusivity. Upon providing such notice, PRC § 49521 specifies that businesses providing “continuation” solid waste handling services during the 5-year period are subject to two conditions involving (1) meeting the quality and frequency of services required by the local agency in other areas not served by said business, and (2) if required by the local agency, adhere to rates that are comparable to those established by the local agency. 7. Additional suggested considerations to inform future decision making about expanding exclusivity Even if the County was prepared to move forward with amending these franchises to expand exclusivity, we are legally precluded from enacting such amendments during the 5-Year period following issuance of the required notice. However, the County would regulate the collection of C&D through a permit system if the Board approves the proposed revisions to Chapter 418-2 of the County Ordinance. Staff suggests there is a need for additional information gathering and analysis which should be undertaken during the 5-Year Notice period to aid the County in in any franchise exclusivity expansion decision making process and/or negotiations. Additionally, during that period additional information may become available such as the below which should also be considered:  New or changed laws and industry norms/trends closer to when the exclusivity could actually take effect.  Evaluate the degree to which the implementation of the Hauler Permit system is effective means of regulating collection of this specialized waste stream. 82 Page 14 of 17  B. Enforcement: The IOC expressed the preference to address enforcement aspects of the ordinance on a separate and parallel track and directed staff to gather information from law enforcement countywide to see if enforcement costs could be estimated. 1. Funding – Funding source(s) needs to be identified in order for the County to dedicate anything beyond the current level of resources to the types of enforcement discussed at prior IOC meetings. a. Commitments from Franchisees: The IOC asked for a commitment from the County Franchisees to contribute amounts sufficient to fund enforcement of the ordinance countywide.  A representative from the County’s franchise hauler that serves most of East County has offered to fund one-third of a Community Services Officer (CSO). Of the total estimated revenue that franchise haulers collect annually from the ratepayers in all four of the County’s Franchise Areas, this East County area accounts for roughly 45%. b. Funding Enforcement by Raising Garbage Rates: The IOC asked staff to report back about the feasibility of raising garbage rates to help fund enforcement. Staff consulted with County Counsel’s Office and was advised that the County cannot legal raise garbage rates to fund the desired enforcement. 2. State Regulations/Laws Prohibit Unmarked Debris Boxes (CCR 17301- 17345)  As the Local Enforcement Agency (LEA) for solid waste, Contra Costa Environmental Health can enforce the State solid waste standards, including those provisions in Title 14 of the California Code of Regulations (CCR) throughout the unincorporated County area. Unlike the County’s authority to regulate waste collection under Chapter 418-2, any ordinances pertaining to waste collection adopted by local non-County franchise agencies cannot preempt the LEA’s authority to enforce the state’s requirements in CCR Title 14. CCEH staff is not proposing to include requirements in Chapter 418-2 if there is already something similar in State laws or regulations that are already within the enforcement purview of a County department. There are a number of requirements and standards applicable to refuse hauling vehicles and containers contained in CCR Sections 17301-17345 (with the exception a permit requirement). Several CCR Sections already address two concerns that the County’s franchise haulers have advocated that the County take on by expanding the scope of this ordinance, namely unmarked debris boxes and unmarked refuse hauling vehicles. CCR Section 17316 requires containers of one cubic yard or more to be identified with the name and telephone number of the applicable service provider (container owner). CCEH has begun an information outreach effort to inform refuse haulers, contractors and building departments for the County and 18 cities (CCEH is not the LEA for the City of Pittsburg) of these requirements and advise that they can refer complaints about possible violations (unmarked 83 Page 15 of 17  boxes/containers) to the LEA for investigation. If a violation is verified, the LEA will give official notice requiring the responsible party to correct the violation. CCEH believes that proactive enforcement of CCR Title 14 container marking requirements can adequately address franchise hauler concerns about unmarked debris boxes. If such efforts prove to be unsuccessful, the Board of Supervisors may wish to consider adding debris box (container) marking or decal requirements to Chapter 418-2. 3. Building Inspection – DCD’s Application and Permit Center staff will assist efforts by helping collect and make available (upon request) hauler information that is collected during the Building Permit process. The hauler information collected on these forms may also prove to be helpful to CCEH when they investigate complaints or allegations. Building Inspection staff will also help watch out for and report any debris boxes they observed which do not identify the name and telephone number of the container owner. a. CalGreen: DCD is prepared to move forward with modifying our CalGreen Debris Recovery Plan and Report forms to require identification of the name of the person or company responsible for hauling debris from the applicable jobsite. i. The State Building Code (including CalGreen) is updated every three years. Following the release of each updated State Building Code in approximately June or July, the County prepares any proposed local amendments to present in conjunction with the updated State Code for potential adoption by the Board of Supervisors between July – December. ii. Later this year, the County will have the opportunity to develop proposed amendments to the updated version of CalGreen which will be presented for recommended adoption before the end of December 2016. Staff can include any recommended changes that may be deemed necessary to start requiring identification of the responsible hauling entity on CalGreen compliance forms. b. Penalty for Violating CalGreen: At the October 12, 2015 IOC meeting, a Franchisee representative spoke in support of having the County start levying fines if Permittees failed to provide evidence of proper disposal of C&D debris at the time they requested their certificate of occupancy (Final Inspection) from the Building Inspection Division. The County does not have authority to impose fines on persons violating the debris recovery requirements in CalGreen. Persons found to be out of compliance with CalGreen debris recovery requirements are denied the ability to receive their Final Inspection for that project. Cities have the ability to require deposits at the time building permit applications are submitted, which are only released after construction has been completed and the report and receipt documentation is submitted demonstrating compliance. This has been an incredibly effective and efficient compliance incentive that is far superior to levying fines. Although 84 Page 16 of 17  the California Government Code expressly provides cities with the right to require forfeiture of deposits for ordinance violations, the same is specified for counties. In most cases the highest fine that the County can impose for most first time code violations is $100. This maximum fine amount is dictated by State law and has remained the same for over a decade. Even 10 years ago that amount was too low to serve as a disincentive for violating County Code. However, a decade later the cost of living and more importantly disposal/recycling costs have increased significantly quite dramatically. DCD staff identified this as an area of concern and there has been a SUPPORT position addressing this exact need in the County’s State Legislative Platform since at least 2007. c. Role of Building Inspectors tied to Debris Box Decal Requirement: If efforts to enforce the container marking requirements in Title 14 prove to be inadequate or insufficient that Chapter 418-2 were to be revised in the future to require County issued decals for debris boxes/containers, Building Inspectors could alert Environmental Health if they observe Debris Boxes without decals when visiting jobsites to conduct inspections. 4. Law Enforcement – a. Source separated recyclables - Recyclables belong to the generator until they are given/donated to another party or placed out for collection. i. City of Concord – The City’s Franchise Agreement requires that their Franchise Hauler (Concord Disposal Service owned by Garaventa Enterprises) fund one-half of the cost of a full-time CSO (which is a non- sword officer that works for their Police Department). This is the only local model staff is aware of where law enforcement has an ongoing active role in helping address theft of recyclables. However Concord’s CSO apparently focus enforcement efforts on combating poaching of recyclables from commercial customers. ii. Poaching (Theft) of Recyclables Prohibited by Multiple Existing State Laws and Regulations - Imposing new Ordinance requirements at the local level is unnecessary and duplicative because there are already State laws and regulations in place which prohibit poaching (theft) of recyclables placed out for collection by the Franchise Haulers. A. Recyclable Theft and Penalty Options - PRC: The franchisees have expressed concerns about the theft (poaching) of recyclable materials, primarily from commercial customers, along their routes.   State law includes additional more stringent provisions which can be found in the California Public Resources Code (PRC) but which is not enforced by CCEH, as the LEA. Violations of these PRC Sections involving the theft of recyclables are subject to criminal enforcement (if not handled as a civil matter) by applicable enforcement authorities (e.g. local law enforcement). . Sections 41950 and 41951 include language specifying that residential and 85 Page 17 of 17  commercial recyclables become the property of the collection service operator as soon as they are placed out on the curb (or other designated pick-up location) for collection. These sections also expressly prohibit persons from removing residential or commercial recyclables placed out for collection. PRC Section 41955 allows the theft of recyclables valued between $50 and $950 to be charged as either a misdemeanor or an infraction, unless it is a second or subsequent violation which must then be charged as a misdemeanor punishable pursuant to Section 19 of the Penal Code. Additionally, PRC Section 41953 specifies the maximum civil penalty amounts that courts are allowed to award in response to civil actions brought by the designated recycler; the amount allowed for the first violation ($2,000) is less than half of the amount allowed for subsequent violations within any 12-month period ($5,000). Alternatively, courts may award treble damages instead if greater than applicable civil penalty limits. B. Report Fraudulent Activities to the State: CalRecycle’s Division of Recycling is responsible for the California Refund Value (CRV) recycling program. The State provides assistance and resources in order to increase recovery and recycling of CRV beverage containers. CalRecycle’s website lists self-haul type trucks being used to deliver beverage containers to a recycling center as one of the potentially fraudulent activities that should be reported to the Division of Recycling’s toll-free tip hotline at 1-866-CANLOAD (1-866-226-5623). The Division of Recycling provides recyclers and processors with a free copy of this fraud reporting sign. By posting this sign at their places of business, recyclers and processors can help discourage fraudulent recycling activities. A Printable sign is posted on their website as is a link to request a printed fraud sign. ATTACHMENTS: Exhibit A: Revised County Code Chapter 418.2 – Hauler Ordinance Exhibit B: County Counsel Memorandum – February 23, 2016 Exhibit C: Map of Unincorporated Franchise Areas G:\Conservation\David\Hauler Ordinance\February 2016 IOC Meeting\Joint Staff Report to IOC_2-29- 2016_CLEAN.docx   86 ORDINANCE NO. 2016-____ (Solid Waste Collection and Transportation) The Contra Costa County Board of Supervisors ordains as follows: SECTION I. SUMMARY. This ordinance amends Chapter 418-2 of the County Ordinance Code to establish permit requirements for the collection and transportation of solid waste in the unincorporated area of Contra Costa County. SECTION II. AUTHORITY. This ordinance is adopted pursuant to Article 11, section 7 of the California Constitution, Public Resources Code section 40059 and Vehicle Code section 21100. SECTION III. Chapter 418-2 of the County Ordinance Code is amended to read: Chapter 418-2 Solid Waste Collection and Transportation 418-2.002 Definitions. For purposes of this chapter, the following words and phrases have the following meanings: (a) “Solid waste” means all solid waste as defined in Public Resources Code section 40191 as may be amended from time to time. (b) “Solid waste facility” means a solid waste facility as defined in Public Resources Code section 40194 as may be amended from time to time. (Ords. 2016-___ § 3, 82-42 § 1: prior code § 4500: Ord. 1443.) 418-2.004 Permit requirement. No person shall collect solid waste from any location in the unincorporated area and transport it over the public streets or highways of the unincorporated area except under a valid permit issued under this chapter, unless an exemption applies. (Ord. 2016-___ § 3; prior code § 4501: Ord. 1443.) 418-2.006 Territorial limits; solid waste types. (a) A permit issued under this chapter authorizes the permittee to collect specified types of solid waste within a specified territory in the unincorporated area and to transport it over the public streets and highways of the unincorporated area. (b) A person may obtain a permit under this chapter to collect solid waste from territory in the unincorporated area only to the extent that another person does not have an exclusive privilege or right to collect that solid waste from that territory under a valid franchise agreement. (Ord. 2016-___ § 3; prior code § 4502: Ord. 1443.) 418-2.008 Exemptions. The requirement to obtain a permit under Section 418-2.004 does not apply to any of the following: (a) The collection and transport of solid waste by the owner or occupant of the real property where the solid waste was generated. EXHIBIT A 87 (b) The collection and transport of solid waste that is generated on real property in the course of a service provided to the owner or tenant of that property by a building contractor or landscape contractor, if the solid waste is collected and transported by the contractor. (c) The collection and transport of solid waste under a valid federal, state or other local agency permit. (d) The collection and transport of solid waste under a valid franchise agreement. (e) The collection and transport of solid waste that is generated in a mechanized manufacturing process or at a publicly operated treatment works. (f) The collection and transport of source-separated recyclable material. (Ords. 2016-___ § 3, 91-26 § 2: prior code § 4503: Ord. 1443.) 418-2.010 Application. (a) A person may apply for a solid waste collection and transportation permit by submitting an application to the Contra Costa County Health Services Department, Environmental Health Division, and paying an application fee established by the board by resolution. The application must be made using a form approved by the health officer and include all of the following: (1) The full name, address and telephone number(s) of the applicant. (2) Identification of all vehicles proposed to be used in the collection and transport of solid waste under the permit, including legible copies of valid California registration cards for each vehicle. (3) Documents showing that all individuals who will operate any of the vehicles described in Section 418-2.010(a)(2) have legal authority to operate those vehicles, including legible copies of valid California driver’s licenses. (4) Identification of the types of solid waste to be collected and transported. (5) Identification of the types of locations where solid waste will be collected. (6) Identification of the specific territory to be served. (7) Identification of the locations to which the solid waste will be transported. (8) A description of any services to be provided to a customer related to the collection and transport of solid waste for that customer. (b) A copy of the application will be provided by the health officer to the director of the department of conservation and development for review to determine whether any other person has obtained an exclusive right or privilege from the county to collect and transport the same type of solid waste described in Section 418-2.010(a)(4) from the same territory described in Section 418-2.010(a)(6). The review will be conducted and completed no later than 30 calendar days following the date that the application is submitted. (c) A copy of the application will be provided by the health officer to local public agencies that have jurisdiction over solid waste handling within the territory described in Section 418- 2.010(a)(6), including sanitary districts and community services districts, for review to determine whether any other person has obtained an exclusive right or privilege from the agency to collect and transport the same type of solid waste described in Section 418-2.010(a)(4) from the same territory described in Section 418-2.010(a)(6). (Ords. 2016-___ § 3, 91-26 § 3, 82-42 § 2: prior code § 4504: Ord. 1443.) 418-2.012 Vehicle inspections. (a) All vehicles proposed to be used for collection and transport of solid waste under a permit issued under this chapter shall be made available for inspection by the health officer. 88 (b) Before a new or renewed permit is issued under this chapter, the health officer shall inspect all vehicles proposed to be used for collection and transport of solid waste under the permit to determine compliance with the following minimum standards: (1) The vehicle must be designed, constructed and configured for safe handling and to securely contain the type of solid waste proposed to be collected; and (2) The vehicle must be prominently marked with the name and telephone number of the applicant. (Ord. 2016-___, § 3.) 418-2.014 Permit issuance; grounds for denial. (a) After receipt of an application and payment of a permit fee established by the board by resolution, and following the review by the director of the department of conservation and development under Section 418-2.010(b), the health officer shall issue a solid waste collection and transportation permit unless any of the following grounds for denial exists: (1) The director of the department of conservation and development or a local public agency identified in Section 418-2.010(c) advises the health officer that another person has an exclusive right or privilege to collect and transport the same type of solid waste described in Section 418-2.010(a)(4) from the same territory described in Section 418-2.010(a)(6). (2) The application is incomplete or inaccurate. (3) A permit issued to the applicant under this Section 418-2.012 has been revoked within 12 months prior to the date of the application. (4) The applicant has failed to pay an outstanding fine. (5) The health officer determines that a vehicle proposed to be used in the collection and transport of solid waste under the permit does not conform to the minimum standards set forth in Section 418-2.012(b)(2). (b) The health officer shall provide written notice to the applicant of any denial of a permit under this chapter and the reasons for the denial. (Ord. 2016-___, § 3.) 418-2.016 Conditions. The following requirements are conditions of operation under a permit issued under this chapter: (a) The permittee must comply with all applicable laws and regulations. (b) A copy of the permit must be kept in each vehicle used for solid waste collection and transportation under the permit and produced immediately in response to a demand of the health officer or any peace officer. (c) All solid waste must be transported only to: (1) A solid waste facility that is lawfully operated under all required state and local permits, registrations and enforcement agency notifications; or (2) A recycling facility that, as its principal function, receives wastes that have already been separated for reuse and are not intended for disposal, and is lawfully operated in accordance with all applicable laws and regulations. (d) Each vehicle used for solid waste collection or transportation under the permit must prominently display, on the rear of the vehicle, a permit decal issued by the health officer. (e) Each vehicle used for solid waste collection or transportation under the permit must be marked with the name and telephone number of the permittee. Markings must be in sharp contrast to the background and of such size as to be readily visible during daylight hours from a distance of 50 feet. Markings must be applied to each sidewall of a vehicle. 89 (f) Each vehicle used for solid waste collection or transportation under the permit must be regularly cleaned and maintained to prevent the creation of a nuisance. (g) The permittee must maintain, on a rolling basis, original records showing, for the immediately preceding 12 months, the type and weight of all solid waste collected, the location where each load of solid waste was collected, and the disposal site or other final destination of each load collected. Copies of these records must be submitted to the health officer upon request. (h) The permittee must submit quarterly reports to the health officer showing the type and weight of solid waste collected, the location where solid waste was collected, and the disposal site or other final destination of each load collected. (Ord. 2016-___, § 3.) 418-2.018 Bond. A permittee must file with the county and maintain until permit expiration a performance bond or equivalent security of the type and in the amount set by the board by resolution. (Ord. 2016-___, § 3.) 418-2.020 Permit expiration and renewal. (a) A permit issued under this chapter remains valid until the permit expires or is revoked under Section 418-2.022. (b) A permit expires on the last day of February unless it is renewed prior to expiration. A permittee may apply for renewal of the permit by submitting an application that conforms to the requirements set forth in Section 418-2.010 and payment of a permit fee established by the board by resolution. (Ord. 2016-___, § 3.) 418-2.022 Revocation. (a) Grounds. A permit issued under Section 418-2.012 may be revoked by the health officer in accordance with the procedure set forth in this section if the health officer determines that (1) the permittee has failed to comply with a term or condition of operation under the permit following written notice and a reasonable opportunity to cure the violation; or (2) the permittee’s conduct under the permit constitutes a nuisance. (b) Notice. The health officer will provide written notice of intent to revoke a permit to the permittee at the address provided on the permittee’s application. The notice will state all applicable grounds for the revocation and the permittee’s right to a hearing under this section. (c) Hearing. Within 15 days after the date of the notice of intent to revoke, the permittee may request a hearing before the health officer by completing and submitting a written hearing request form and paying a fee established by the board by resolution. The hearing will be held no sooner than 20 days and no later than 45 days following the date of the written request for hearing. (d) Effective date. If no hearing is timely requested, the revocation is effective 15 days after the date of the notice of intent to revoke. If a hearing is held, a revocation order issued by the health officer will be effective when the time to appeal under Chapter 14-4 expires, unless an appeal to the board is timely filed under Chapter 14-4. (Ord. 2016-___, § 3.) 418-2.024 Prohibition. No person shall engage the service of a person for compensation to collect solid waste from any location in the unincorporated area and transport it over a public street or highway in the 90 unincorporated area unless the person whose service is engaged has obtained and operates in compliance with a permit issued under this chapter or is exempt from the permit requirement. (Ord. 2016-___, § 3.) 418-2.026 Investigations. Whenever it is necessary to inspect a vehicle or other property to enforce the provisions of this chapter, or whenever the health officer has cause to believe that there exists on any property any violation of this chapter, the health officer may enter the property to inspect and gather evidence or perform the duties imposed on the health officer by this chapter. Entry may be made at any reasonable time upon advance notice to the owner or occupant of the property. If entry is refused, the health officer is authorized to proceed pursuant to Code of Civil Procedure section 1822.50 and following, as may be amended from time to time, and any and all other remedies provided by law to secure entry. (Ord. 2016-____, § 3.) 418-2.028 Construction. Nothing in this chapter shall be construed in a manner that conflicts with Vehicle Code section 21100, subdivision (b), as may be amended from time to time. (Ord. 2016-____, § 3.) SECTION IV. EFFECTIVE DATE. This ordinance becomes effective 30 days after passage, and within 15 days after passage shall be published in the Contra Costa Times, a newspaper published in this County. This ordinance shall be published in a manner satisfying the requirements of Government Code section 25124, with the names of the supervisors voting for and against it. PASSED on __________________, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: David J. Twa, Clerk of the Board of Supervisors and County Administrator By: ____________________________ Deputy Board Chair [seal] H:\Ordinances\WasteHaulerOrdinance.Rev.2.22.16.docx 91 EXHIBIT B 92 93 94 95 96 Clyde 5 2 3 Contra Costa County Alameda County SolanoCounty San FranciscoCounty SacramentoCounty San Mateo County San JoaquinCounty Alamo Rodeo Bay Point Discovery Bay Byron Crockett Knightsen Bethel Island Blackhawk El Sobrante Diablo Kensington Pacheco Port Costa E. Richmond Heights Richmond AntiochConcord Oakley Hercules Danville Pittsburg Orinda Pinole San Ramon Lafayette Martinez Brentwood Moraga Walnut Creek Pleasant Hill ClaytonEl Cerrito San Pablo 3 5 2 1 4 £¤101 }þ4 }þ160 }þ13 }þ242 }þ12 }þ84§¨¦580 §¨¦680 §¨¦880 §¨¦780 §¨¦205 §¨¦238 §¨¦980 §¨¦580 567J4 This map was created by the Contra Costa County Department of Conservation and Development with data from the Contra Costa County GIS Program. Some base data, primarily City Limits, is derived from the CA State Board of Equalization's tax rate areas. While obligated to use this data the County assumes no responsibility for its accuracy. This map contains copyrighted information and may not be altered. It may be reproduced in its current state if the source is cited. Users of this map agree to read and accept the County of Contra Costa disclaimer of liability for geographic information.I 0 5 102.5 Miles Supervisorial Districts County Administered Franchises Allied (16,834 pop.) Crockett Sanitary (3,322 pop.) Garaventa (34,643 pop.) RSS (35,070 pop.) Non - County Franchises CCCSWA County (49,999 pop.) Kensington CSD (5,077 pop.) Byron Sanitary (756 pop.) Mt View Sanitary (21,192 pop.) Rodeo Sanitary (7,730 pop.) Contra Costa CountyCollection Franchise Area Map (Draft) Map Created 2/23/2016 by Contra Costa County Department of Conservation and Development, GIS Group 30 Muir Road, Martinez, CA 94553 37:59:41.791N 122:07:03.756W* Population numbers from 2010 Census Data * EXHIBIT C 97 INTERNAL OPERATIONS COMMITTEE - SPECIAL 7. Meeting Date:02/29/2016   Subject:Community Choice Energy Aggregation Update Submitted For: John Kopchik, Director, Conservation & Development Department  Department:Conservation & Development Referral No.: IOC 16/11   Referral Name: Community Choice Energy Aggregation  Presenter: Jason Crapo, Conservation & Development Department Contact: Jason Crapo (925) 674-7722 Referral History: The Board of Supervisors referred the topic of Community Choice Energy (CCE) to the Internal Operations Committee (IOC) on August 18, 2015.  The IOC received an initial report on this topic at its meeting on September 14, 2015, at which time the IOC recommended that the Board of Supervisors (Board) direct the Department of Conservation and Development (DCD) to initiate outreach to cities within Contra Costa County to determine the level of interest cities have in partnering with the County to investigate three potential alternatives for implementing CCE in Contra Costa County. These three alternatives are as follows: Form a new Joint Powers Authority (JPA) of the County and interested cities within Contra Costa County for the purpose of CCE;1. Form a new JPA in partnership with Alameda County, and interested cities in both counties; and2. Join the existing CCE program initiated in Marin County known as Marin Clean Energy, or MCE3. On October 13, 2015, the Board accepted the recommendations of the IOC and directed DCD to initiate outreach to cities within Contra Costa County to determine the level of interest cities have in joining with the County to investigate these three alternatives. The Board also authorized DCD to hire a consultant to assist the County with this outreach effort. The Board directed DCD to report back to the IOC regarding the outcome of outreach to cities. Referral Update: This report will describe the outreach activities undertaken by County staff, discuss the responses the County has received from cities to these outreach efforts, and recommend next steps. In summary, based on the interest expressed by cities in working with the County to further investigate options for potentially implementing CCE within the County, staff recommends the IOC and the Board direct staff to continue working with Contra Costa cities towards completion of a technical study that would evaluate options for potentially implementing CCE in Contra Costa County. Outreach Activities Between November 2015 and January 2016, County staff conducted a variety of outreach activities to engage cities on the topic of Community Choice Energy (CCE). These activities included meetings with City Managers and other city staff, attendance at the December 3, 2015 Mayors Conference, three public workshops in mid-December held in different regions of the County, and presentations provided by County staff and consultants at five City Council meetings during the month of January. On November 13, 2015, the County Administrator sent a letter (Attachment A) to all City Managers in Contra Costa County asking for responses back from cities by January 31, 2016 indicating the level of interest cities have in partnering with the County to study CCE. This letter specifically asked if cities would authorize the County to obtain electrical load data from PG&E for the purpose of potentially conducting a technical study of CCE in Contra Costa County, and if the cities would be willing to contribute financially towards the cost of such a study if one were conducted. To facilitate greater public understanding of CCE and assist cities in their deliberations on the subject, DCD staff and consultants hosted three public workshops in December 2015: the first on December 10 at Walnut Creek City Hall, the second on December 14 at the Hercules Public Library and the third on December 16 at the Brentwood Community Center. Average attendance at these workshops was approximately 20 people, and several cities sent representatives to attend the workshops. During the month of January 2016, many City Councils throughout the County placed items on their agendas to discuss their interest in partnering with the County to further study implementation of CCE. County staff and consultants were invited to attend and make presentations at the Concord, Clayton, Pinole, Lafayette and Brentwood City Council meetings. The workshops and city council meetings held in December and January generated several press articles, which can be viewed at the following links:  East Bay Express: http://www.eastbayexpress.com/SevenDays/archives/2015/10/12/contra-costa-considers-replacing-pgande-with-green-power-program  (10/12/15) Contra Costa Times: http://www.contracostatimes.com/breaking-news/ci_29360872/contra-costa-county-alternative-energy-idea-gathering-city  (1/8/16) The Press: http://www.thepress.net/news/brentwood/contra-costa-county-considers-joining-a-community-choice-aggregation-system/article_50f79566-7e65-11e5-8ab8-2badb324eed0.html (10/29/15) Yodeler (Sierra Club): http://theyodeler.org/?p=11203 (1/28/16) East Bay Express: http://www.eastbayexpress.com/SevenDays/archives/2016/01/29/coco-county-moves-closer-to-green-energy-plan-that-would-replace-pgande  ((1/29/16) MarinIJ: http://www.marinij.com/environment-and-nature/20160216/marin-clean-energy-on-brink-of-growth-as-contra-costa-eyes-effort?source=most_viewed  (2/16/16) The Press: http://www.thepress.net/news/oakley-council-takes-steps-toward-clean-energy/article_314697c6-d671-11e5-badf-5f71a1ae9678.html (2/18/16) Responses from Cities By the end of January, all 16 cities in Contra Costa County not currently enrolled in a CCE program (Richmond, El Cerrito and San Pablo are currently enrolled in Marin Clean Energy) provided written responses to the County (Attachment B) authorizing the County to request electrical load data from PG&E necessary for a technical study of CCE in Contra Costa County. Approximately half of these cities indicated varying degrees of willingness to participate in the cost of a technical study of this data, should such a study proceed. These responses are summarized in Table 1 below. Table 1. City Responses to County City Load Data Authorization Cost Sharing for Tech Study Antioch Yes No indication Brentwood Yes Yes, not to exceed $30,000 Clayton Yes Yes, pending more details Concord Yes Yes, not to exceed $25,000 Danville Yes Yes, not to exceed $18,000 Hercules Yes No indication Lafayette Yes No indication Martinez Yes No indication Moraga Yes No indication Oakley Yes No indication Orinda Yes Need more information 98 Orinda Yes Need more information Pinole Yes Need more information Pittsburg Yes Yes, pending more details Pleasant Hill Yes Yes, not to exceed $15,000 San Ramon Yes Maybe, pending more details Walnut Creek Yes Yes, not to exceed $20,000 Recommendation(s)/Next Step(s): Given the interest of Contra Costa cities in participating with the County to further investigate potential implementation of Community Choice Energy, staff recommends the Board direct DCD to continue with the steps required to undertake a technical study of CCE in Contra Costa County. The immediate next step in this process would be for the County to obtain electrical load data from PG&E on behalf of the County and the 16 cities that have authorized the County to do so. This will provide the County with detailed information regarding electrical usage within the covered jurisdictions, and will constitute the raw data necessary to conduct a technical study of potential CCE implementation within the County. Staff recommends that the Board direct DCD to work in partnership with interested cities to jointly fund a technical study of CCE in Contra Costa County that would evaluate three options: a program including only interested jurisdictions within Contra Costa County; a program that is a partnership with Alameda County and interested jurisdictions in the two-county region; and joining the existing CCE program originated in Marin County known as Marin Clean Energy. Such a technical study would be conducted by a qualified consultant selected through a competitive process. The technical study would evaluate electrical load data to determine the amount of electricity a CCE program would need to procure in order to serve electricity consumers in the participating communities, and would estimate the billing rates that a CCE program would need to charge electricity customers in order to pay for program operations.  The study would analyze how rates might vary under scenarios in which the CCE program offered customers different levels of electricity originating from renewable sources (for example, rates associate with 50% renewable or 100% renewable options). Electricity rates for these scenarios would be compared to products offered by the incumbent utility, PG&E (Attachment C). The technical study would also include a risk analysis of factors that could potentially interfere with successful operation of a CCE program within the County, such as risks associated with price volatility in energy markets and risks stemming from legal or regulatory changes. CCE technical studies performed in other Bay Area counties have included additional components, including analysis of the impact a CCE program might have on local renewable power generation and local job creation.  As stated in Table 1 above, roughly half of the cities in Contra Costa County have indicated some degree of willingness to contribute financially towards the cost of a technical study. Staff recommends that the Board direct DCD to work with cities to finalize payment arrangement and initiate the technical study. Staff recommends that the County and each participating city pay for a portion of the cost of the technical study similar to its proportion of the total population covered under the study.  Staff proposes that DCD work with the cities to finalize the scope of the technical study, develop and issue a Request for Proposals (RFP), and select a consultant to perform the technical study. The County would then enter into a contract with the selected consultant. The results of the technical study would be reported to the cities and the Board of Supervisors, and staff would seek further direction. Project Schedule and Budget Completing a technical study of Community Choice Energy would represent the first major phase of activity related to potential implementation of CCE within Contra Costa County. Following a technical study, additional steps would be required to launch a CCE program, should the Board decide to proceed with implementation. An estimated schedule and budget for fully implementing CCE within the County is attached to this report (Attachment D). The time and expense associated with implementing CCE within the County depends heavily on the outcome of the technical study and the resulting direction selected by the Board and participating cities. The CCE option likely to require the greatest commitment of time and resources would be the option to form a new JPA comprised of the County and cities within Contra Costa County. Following the technical study, such an option would involve two additional phases of activity: JPA Formation and Program Launch. The activities associated with these additional project phases and the estimated time and expense to complete these activities are described in greater detail in Attachment D. Staff estimates the total time needed to implement the Contra Costa JPA option and begin providing electricity to customers would be in the range of two to three years and would cost approximately $2 million.  Recommendation(s) Staff recommends the IOC and Board of Supervisors direct DCD and other County staff to take the following actions:  Take all actions necessary to obtain electrical load data from PG&E on behalf of the County and all cities in Contra Costa County that have authorized the County to do so.1. Work with interested cities in Contra Costa County to conduct a technical study of options for potentially implementing CCE within Contra Costa County, anticipating the County’s share of cost is estimated to be in the range of $25,000 to $50,000.  2. Authorize DCD to amend the consulting services contract with LEAN Energy to increase the payment by $75,000 to a new payment limit of $100,000 for consulting services through completion of the technical study. 3. Fiscal Impact (if any): Should the IOC and the Board approve the recommendations of this report, the cost to the County would be approximately $300,000. This includes an estimated $125,000 in consulting services and $175,000 in County staff costs to manage the project. Staff recommends that these consulting and staffing costs be funded from the County’s General Fund. These costs would include an amendment to the County’s current consulting services contract with LEAN Energy to increase the contract limit by $75,000 to assist DCD with obtaining electrical load data from PG&E, refining the scope of the technical study and developing the RFP, evaluating proposals from consultants for conducting the technical study, interpreting the results of the technical study and reporting the findings of the technical study to cities, the IOC and the Board of Supervisors. LEAN Energy will also assist County staff is conducting a variety of community outreach activities to provide information and education to the public and to gather public input to assist decision makers in evaluating the results of the technical study. The costs of the actions recommended by this report also include the County’s share of cost for conducting the technical study. The total cost of the technical study is estimated to be in the range of $75,000 to $150,000. The County’s share of this cost is estimated to be in the range of $25,000 to $50,000. Costs of the actions recommended in this report also include the cost of DCD staff time until the end of 2016 at a cost of approximately $150,000 plus the cost of County Counsel staff time, estimated to be $25,000 during 2016.  The County would seek to have its costs reimbursed in the future from the revenues of a new CCE program should a new JPA be created for this purpose. If a new JPA is not established, the County’s costs are unlikely to be reimbursed. Attachments Attachment A: CAO Letter to CC Cities Attachment B: City Responses to CAO Letter Attachment C: PG&E's New Solar Choice Offering Attachment D: Proposed CCE Tech Study Schedule and Budget Attachment E: CCE Powerpoint Presentation 99 Attachment ASAMPLE100 SAMPLE101 SAMPLE102 Attachment B 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 中文 Search Solar Choice | Residential | PG&E http://www.pge.com/en/myhome/saveenergymoney/solar/choice/index.page 1 of 2 2/23/2016 3:20 PM 124 中文 Search Frequently Asked Questions | Solar Choice | Residential | PG&E http://www.pge.com/en/myhome/saveenergymoney/solar/choice/faq/inde... 1 of 2 2/23/2016 3:21 PM 125 Frequently Asked Questions | Solar Choice | Residential | PG&E http://www.pge.com/en/myhome/saveenergymoney/solar/choice/faq/inde... 2 of 2 2/23/2016 3:21 PM 126 Community Choice Energy Estimated Schedule and Budget* *Note: Time and cost estimates for Phases 2 and 3 are based forming a Contra Costa JPA and are subject to change if another CCE option is selected for implementation Phase 1 – Technical Study Schedule Summary: 10 months (time remaining to completion) Budget Summary: $300,000 Schedule Detail: 10 months to completion Outreach to Cities (November ‘15 – January ‘16) PG&E Data Request (March – to May ’16) Convene Cities and Scope Tech Study (March – May ’16) Develop Web Site, Increase Stakeholder Engagement (March – ongoing) Tech Study RFP and Consultant Selection (June – August ’16) Complete Tech Study (September – October’16) Report Findings and Receive Direction (November – December ’16) Budget Detail: LEAN Energy: $75,000 Technical Study: $50,000 (County Share of $150,000 estimated total cost) County Staff: $175,000 Phase 2 – JPA Formation or Inclusion Schedule Summary: 8 – 12 months Budget Summary: $750,000 – $1 million Schedule Detail: If joining MCE, costs and schedule to be negotiated with MCE, but costs expected to be considerably lower and schedule to program launch shorter that with other options. If creating new JPA with Alameda County, costs will be negotiated and shared. Schedule unknown. If creating a new Contra Costa JPA, tasks will include the following: JPA legal documents and Approvals Finalize Program Design Adopt Local Ordinances Submit Implementation Plan to CPUC Attachment D 127  Initiate bidding for electricity procurement  Secure source of operating capital/credit  Community Outreach and Engagement Budget Detail:  Phase 2 costs will depend heavily on the CCE option selected from Technical Study, but if the option of creating a Contra Costa JPA is selected, costs for Phase 2 would likely be $750,000 or greater. These costs would include consulting services for assistance with regulatory compliance, energy procurement and community outreach activities, plus County staff time in DCD and County Counsel. Phase 3 – Program Launch Schedule Summary: 8 – 12 months Budget Summary: $500,000 – $1 million Schedule Detail:  Schedule for program launch will depend on CCE option selected from Technical Study  A new Contra Costa JPA will require the most time and expense  Phase 3 tasks associated with a new Contra Costa JPA would include:  Hire JPA staff and securing office space  Energy Procurement  Comply with CPUC Regulatory Requirements  Increase marketing and public engagement,  Secure working capital/credit Budget Detail:  Phase 3 costs are difficult to estimate but could be in the range of $500,000 to $1 million if a new Contra Costa JPA is formed. Such costs would include JPA staffing and facilities, and consulting services for assistance with regulatory compliance, energy procurement and marketing activities. Funding during this phase could come from sponsoring jurisdictions, or from third-party sources, such as banks and other financial institutions. Following JPA formation, a transition would occur whereby the new agency would become responsible for program costs. 128 Community Choice Energy (CCE) In Contra Costa County Internal Operations Committee of the Board of Supervisors February 29, 2016 129 What is Community Choice Energy? CCE enables local governments to procure and/or develop power on behalf of their public facilities, residents and businesses. It creates a functional partnership between municipalities and existing utilities. It has proven to increase renewable energy and lower greenhouse gases while providing competitive electricity rates. 130 Basic Program Mechanics 1. Form or join a Joint Powers Agency: Local governments participate by passing an ordinance and entering into a JPA Agreement 2. Utility (PG&E) continues to provide consolidated billing, customer service, grid and line maintenance. 3. PG&E programs for low income/CARE customers remain the same 4. CCE electric generation charges (including exit fee) appear as new line items on the customer bill; all other charges remain the same 5. CPUC certifies CCE Plan; oversees utility/ CCE service agreement and other requirements. 131 3 Programs in California… so far Launch Year Avg. Customer Rate Savings Power Options (current) 2010 2-5% below PG&E 56% Renewable 100% Renewable 100% Local Solar 2014 6-14% below PG&E 36% Renewable 100% Renewable 2015 3-4% below SCE 35% Renewable 100% Renewable 132 Financial Highlights MCE and SCP are fiscally sound CCE Financial Performance 133 CCE & Local Climate Action Plans Excerpt from City of San Mateo Climate Action Plan TCO2 Reduced Note that CCE programs do not impose additional costs to property owners/developers -5,000 10,000 15,000 20,000 25,000 CCE Other RE Energy Efficiency Alternative Fuels Alternative Transport Composting Other CAP Program Options 134 Renewable Energy Product Options Provider Program Power Options Average Premium for Residential Customers Added charge on monthly bill (assume 500 kwh/month) PG&E Default Solar Choice 27% Renewable 50% Solar 100% Solar No premium 3.58 cents/kWh 3.58 cents/kWh None $8.96/month (assume 250 kWh from solar) $17.91/month (assume all 500 kWh from solar) Marin Clean Energy Light Green Deep Green Local Sol* 56% Renewable 100% Renewable 100% Local Solar No premium 1 cent/kWh 6 cents/kWh None $5.00/month $30.00/month Sonoma Clean Power CleanStart EverGreen** 36% Renewable 100% Renewable No premium 3.5 cents/kWh None $18.00/month *100% from local solar project in Novato **100% sourced from the Geysers geothermal facility in Sonoma County 135 What are the Risks… And how are they mitigated? Rate Competition/Market Fluctuation: Rates will vary with market conditions. Power market expertise and well crafted power RFPs are essential; Diversified supply portfolio and “value add” programs. Customer Opt-Out: Competitive rates are a must; Articulate additional consumer and community benefits. Political: Align CCA to local policy objectives; Appeal to both progressive and conservative minds by making the environmental AND business case. Regulatory/Legislative: PUC decisions may adversely affect CCA; also example of AB 2145; Participate in the regulatory and legislative process. 136 In Summary: Potential CCE Advantages •CCE is responsive to local environmental and economic goals •Offers consumers a choice where none currently exists •Revenue supported, not taxpayer subsidized •Stable, often cheaper, electricity rates •Allows for rapid switch to cleaner power supply and significant GHG reductions; achievement of local CAP goals •Provides a funding source for energy efficiency and other energy programs like energy storage and EV charging stations 137 Outreach Activities Since Last BOS Meeting •County staff sent letters to all 16 eligible cities (Richmond, San Pablo and El Cerrito are already members of MCE) to authorize load data collection and assess interest in a technical study. •Announced regional workshops at Dec. 3 Mayors Conference •Three Regional Workshops a) Walnut Creek (Dec. 10) b) Hercules (Dec. 14) c) Brentwood (Dec. 16) •Presentations to City Councils: Concord, Clayton, Pinole, Lafayette and Brentwood 138 City Load Data Authorization Cost Sharing for Tech Study Antioch Yes No indication Brentwood Yes Yes, not to exceed $30,000 Clayton Yes Yes, pending more details Concord Yes Yes, not to exceed $25,000 Danville Yes Yes, not to exceed $18,000 Hercules Yes No indication Lafayette Yes No indication Martinez Yes No indication Moraga Yes No indication Oakley Yes No indication Orinda Yes Need more information Pinole Yes Need more information Pittsburg Yes Yes, pending more details Pleasant Hill Yes Yes, not to exceed $15,000 San Ramon Yes Maybe, pending more details Walnut Creek Yes Yes, not to exceed $20,000 City Responses 139 Where do we go from here? •Given city interest in a potential CCE program in Contra Costa, staff recommends the Board direct DCD to undertake a technical study of CCE in Contra Costa County. •County’s contribution to the technical study likely to be in the $25,000-$50,000 range. Total cost of study est. $75,000-$150,000. •First Next Step: Obtain PG&E Load Data •Work with cities to fund and initiate the tech study, examining three options: Stand-alone CCE Join MCE Partner with Alameda County on joint CCE program 140 What could go into a technical study? •Evaluate total load requirements for a CCE (MWH and MW peak demand) •Look at different resource scenarios (50% renewable, 100% renewable option, etc.) •Ability to be competitive in current market environment (including PG&E’s new Solar Choice option) •Assessment of risks •Discussion/modeling of local renewable project development (and associated economic benefits) •Useful to keep in mind that other counties have undertaken such studies, and similar issues apply. 141 Community Outreach •Community Outreach has two objectives: Inform the public about CCE Gather public input to assist decision-makers evaluate tech study •Community Outreach activities would include: Public workshops Focused stakeholder engagement Web-based educational materials Presentations at Mayors Conference, City Council meetings, and/or other venues 142 Summary of Recommendations/Fiscal Impacts •Take steps to obtain PG&E Load Data •Work with Cities to fund and initiate technical study •Estimated Fiscal Impact: $300,000 $75,000 for consulting services to obtain load data, develop and evaluate technical study, and community outreach activities (LEAN Energy) $50,000 for County share of costs for technical study $175,000 for County project management and legal expenses •The County would seek to recover its costs if a new CCE JPA is formed. Costs will not be reimbursed if the County does not create a new JPA. 143 Thank You For More Information: Jason Crapo, Deputy DirectorDepartment of Conservation and DevelopmentCounty of Contra Costajason.crapo@dcd.cccounty.us(925) 674-7722 LEAN Energy USShawn Marshall Seth Baruch (Carbonomics) Tom Kelly (KyotoUSA)shawnmarshall@leanenergyus.org(415) 888-8007 144 INTERNAL OPERATIONS COMMITTEE - SPECIAL 8. Meeting Date:02/29/2016   Subject:REPORT FROM THE AUDITOR-CONTROLLER’S OFFICE ON THE SCHEDULE OF FINANCIAL AUDITS FOR 2016 Submitted For: Robert Campbell, Auditor-Controller  Department:Auditor-Controller Referral No.: IOC 16/2   Referral Name: Review of the Annual Audit Schedule  Presenter: Elizabeth Verigin, Asst Auditor-Controller Contact: Joanne Bohren 925-646-2233 Referral History: The Internal Operations Committee was asked by the Board in 2000 to review the process for establishing the annual schedule of audits, and to establish a mechanism for the Board to have input in the development of the annual audit schedule and request studies of departments, programs or procedures. The IOC recommended a process that was adopted by the Board on June 27, 2000, which called for the IOC to review the schedule of audits proposed by the Auditor-Controller and the County Administrator each December. However, due to the preeminent need during December for the Auditor to complete the Comprehensive Annual Financial Report, the IOC, some years ago, rescheduled consideration of the Auditor’s report to February of each year. Referral Update: Attached is a report from the Auditor-Controller reviewing the department’s audit activities for 2015 and transmitting the proposed schedule of financial audits for 2016, which are already in progress. Assistant Auditor-Controller Elizabeth Verigin and Chief of Internal Audits Joanne Bohren will present the report. Recommendation(s)/Next Step(s): ACCEPT report on the Auditor-Controller's audit activities for 2015 and APPROVE the proposed schedule of financial audits for 2016. Fiscal Impact (if any): There is no fiscal impact related to providing input into the annual audit schedule. The financial 145 There is no fiscal impact related to providing input into the annual audit schedule. The financial auditing process may result in positive and negative fiscal impacts, depending on the audit findings. Attachments 2016 Internal Audit Report 2015 Audit Work Proposed 2016 Audit Schedule 146 147 148 149 Schedule of Internal Audit Examinations for 2015ScheduledEstimatedTotal DepartmentLast DonePreferredForHoursExaminationExamination DescriptionThroughCycle (yrs)20152015HoursAuditor-Controller0105Revolving/Cash Diff. Fund & Shortage Report (fiscal year)6/151 (Law)X60310037Misc A-C duties (ie Petty Cash ICQ;Relief of Shortage;Increase/New Petty Cash; Recons)1X60-Treasurer-Tax Collector0151Treasury Cash & Investments - 1st qtr3/151/4 (Law)X1001350151Treasury Cash & Investments - 2nd qtr 6/151/4 (Law)X1001260151Treasury Cash & Investments - July 17/1/151/4 (Law)X100510151Treasury Cash & Investments - 3rd qtr (Auditor recommendation)9/151/4 (Law)X100410151Treasury Cash & Investments - 4th qtr12/141/4 (Law)X100640156Tax redemptions12/143X2405130172Treasury Oversight Committee (calendar year)12/141 (Law)X180176Purchasing1493Procurement Card Program - 3rd qtr9/151/4 (CAO)X40461493Procurement Card Program - 4th qtr12/141/4 (CAO)X40461493Procurement Card Program - 1st qtr3/151/4 (CAO)X40461493Procurement Card Program - 2nd qtr6/151/4 (CAO)X4045Various Departments / Office of Revenue Collections A/RContinuation of examination of ORC A/R that was returned to depts (special)special-3/15X400261Clerk-Recorder3551General Department5/152X475312Sheriff-Coroner3002Inmate Welfare Fund (2 yr law repealed)2/152X200132Conservation and Development (DCD)3571Keller Canyon - follow up to 2010 examination6/15X120169Health Services4671Mental Health Contracts (special)special-12/14X2001735402Hospital and Clinics (Collections and Petty Cash)6/152X2001594510Conservatorships/Guardianships3/152X2752825401Year End Inventory Control (Pharmacy)6/153X1151145401Year End Inventory Control (General Stores and Materials)6/153X115115Employment & Human Services5001Trust Fundsspecial-10/14X1001525005In Home Supportive Services (IHSS)3/153X175177Completed Examinations - ScheduledPAGE 1 OF 2150 Schedule of Internal Audit Examinations for 2015ScheduledEstimatedTotal DepartmentLast DonePreferredForHoursExaminationExamination DescriptionThroughCycle (yrs)20152015HoursPublic Works0633Fleet Services Division's Compliance with County Clean Vehicle Policy - 2015 IOC Requestspecial-2/15328Treasurer-Tax Collector0151-AReview of Tax Collector Cash Collections Internal Controlsspecial-5/15310151-ATax Collector Cash on Hand - July 1 - Treasurer-Tax Collector Request7/1/15150151-ATax Collector Cash on Hand - 3rd qtr - Treasurer-Tax Collector Request9/15130151-ATax Collector Cash on Hand - 4th qtr - Treasurer-Tax Collector Request12/1512Sheriff-Coroner3003Custody Alternative Programs12/044X350-Completed Examinations - UnscheduledPostponed Examination - Rescheduled for 2016PAGE 2 OF 2151 Schedule of Internal Audit ExaminationsCalendar Year 2016Prefd.ScheduledEstimatedDepartmentLast DoneAuditForHoursProject DescriptionThroughCycle (yrs)20162016Board of Supervisors1101District 1 General Department Audit (Including MACs)1/074X1001103District 3 General Department Audit (Including MACs)4/064X1001105District 5 General Department Audit (Including MACs)1/074X100Auditor-Controller0105Revolving/Cash Diff. Fund & Shortage Report (fiscal year)6/151 (Law)X600037Misc A-C duties (ie Petty Cash ICQ;Relief of Shortage;Increase/New Petty Cash; Recons)1X60Treasurer-Tax Collector0151Treasury Cash & Investments - 1st qtr (3/31/16)03/151/4 (Law)X1000151Treasury Cash & Investments - 2nd qtr (6/30/16)06/151/4 (Law)X1000151Treasury Cash & Investments - July 17/1/151/4 (Law)X1000151Treasury Cash & Investments - 3rd qtr (9/30/16) (Auditor recommendation)09/151/4 (Law)X1000151Treasury Cash & Investments - 4th qtr (12/31/15)12/141/4 (Law)X1000151-ATax Collector Cash on Hand - 1st qtr (3/31/16)NEW1/4 (TTC)X200151-ATax Collector Cash on Hand - 2nd qtr (6/30/16)NEW1/4 (TTC)X200151-ATax Collector Cash on Hand - July 17/1/151/4 (TTC)X200151-ATax Collector Cash on Hand - 3rd qtr (9/30/16)9/151/4 (TTC)X200151-ATax Collector Cash on Hand - 4th qtr (12/31/16)12/151/4 (TTC)X200172Treasury Oversight Committee (calendar year)12/141 (Law)X180Purchasing1493Procurement Card Program - 1st qtr (3/31/16)3/151/4 (CAO)X401493Procurement Card Program - 2nd qtr (6/30/16)6/151/4 (CAO)X401493Procurement Card Program - 3rd qtr (9/30/16)9/151/4 (CAO)X401493Procurement Card Program - 4th qtr (12/31/15)12/141/4 (CAO)X40Sheriff-Coroner2551Escrow Fund (aka Sheriff's Civil)12/102X3503003Custody Alternative Programs12/044X3502555Sheriff Training Center12/072X230Probation3081General Departmental Audit12/132(Law)X240Page 1 of 2152 Schedule of Internal Audit ExaminationsCalendar Year 2016Prefd.ScheduledEstimatedDepartmentLast DoneAuditForHoursProject DescriptionThroughCycle (yrs)20162016Health Services3641Public Administrator3/102X1304521Environmental Health-Hazardous Materials Div3/102X3005401Year End Inventory Control (OR Supplies and Implants)NEW3X180Employment & Human Services5001Administration - Including Form 1099/W-9 Handling, Adm Personnel Req, proc cards, fixed assets, petty cash, expenditures/contractsNEWX300Community Services (EHSD)5882Weatherization Projects Inventory 6/073X180Public Works0634Voyager CardsNEW3X160GASB Implementation (40 X 2)80Single Audit assistance/wrap up803,940 Page 2 of 2153 INTERNAL OPERATIONS COMMITTEE - SPECIAL 9. Meeting Date:02/29/2016   Subject:2016 WORK PLAN Submitted For: David Twa, County Administrator  Department:County Administrator Referral No.: N/A   Referral Name: N/A  Presenter: Julie DiMaggio Enea, IOC Staff Contact: Julie DiMaggio Enea 925.335.1077 Referral History: The Board of Supervisors made the following referrals to the 2016 Internal Operations Committee, which are summarized in Attachment B: Standing Referrals  Continued policy oversight and quarterly monitoring of the Small Business Enterprise and Outreach programs, and e-Outreach 1. Review of the annual financial audit schedule2. Review of annual Master Vehicle Replacement List and disposition of low-mileage vehicles3. Local Bid Preference Program4. Advisory Body Candidate Screening/Interview5. Fish and Wildlife Propagation Fund Allocation6. Advisory Body Triennial Review7. Non-Standing Referrals   Waste Hauler Ordinance8. Social Media Policy9. Animal Benefit Fund Review10. Community Choice Energy Aggregation11. The Committee members have selected the fourth Monday of each month at 11:00 a.m. as the standing meeting date/time for 2016.  Referral Update: Attached for the Committee's review is the proposed meeting schedule, developed in consultation 154 Attached for the Committee's review is the proposed meeting schedule, developed in consultation with your schedulers, and the proposed work plan for hearing each of the 2016 referrals (Attachment A). Recommendation(s)/Next Step(s): APPROVE the proposed 2016 Committee meeting schedule and work plan, or provide direction to staff regarding any changes thereto. Fiscal Impact (if any): None. Attachments ATTACHMENT A: PROPOSED 2016 COMMITTEE MEETING AND DISCUSSION SCHEDULE ATTACHMENT B: SUMMARY OF 2016 IOC REFERRALS 155 ATTACHMENT “A” 2016 Internal Operations Committee Discussion Schedule 4th Monday at 11 a.m. As of February 23, 2016 Meeting Date Subject Staff Contacts February 29* Special IOC Schedule and Work Plan for 2016 Internal Audit Work Plan for 2016 AB Recruitment Schedule Waste Hauler Ordinance Community Choice Energy IPM Interviews HazMat Nominations Julie Enea Elizabeth Verigin/Joanne Bohren Julie Enea Marilyn Underwood/Joe Doser Jason Crapo Tanya Drlik Michael Kent March 28 Social Media Policy follow-up Animal Benefit Fund follow-up Fleet/Low Mileage Vehicle Disposition Triennial Phase I Review – Follow-up: EHS, Ag, HSD, Librarian Betsy Burkhart Beth Ward Carlos Velasquez Theresa Speiker April 25 Screen applications for vacancies and determine interview format Fish & Wildlife Propagation Fund allocation recommendations Treasury Oversight Cte interviews (BOS Rep and Public 3 seats) Julie Enea Maureen Parkes Russell Watts May 23 Planning Commission, Fire Board, & Retirement Board interviews Affordable Housing Finance Committee nominations Julie Enea Kara Douglas June 27 July 25 August 22 AB Triennial Review – Phase 2 Vicky Mead September 26 Local Bid Preference Program Annual Report David Gould October 24 SBE 2015 Annual Report CCRCD interviews Vicky Mead Julie Enea/Teresa Hunter November 28 Hazardous Materials Commission nominations Law Library Member of the Bar nominations Mosquito & Vector Control nominations Michael Kent Julie Enea/Carey Rowan Allison Nelson/Craig Downs December 26 Fish & Wildlife Cte interviews (At Large 3, 4 and alternate) Maureen Parkes 156 ATTACHMENT C SUMMARY OF 2016 IOC REFERRALS 1. Small Business Enterprise (SBE) and Outreach Programs. The IOC accepted an annual SBE Program report on October 12, 2015 from the County Administrator’s Office, covering the period January-December 2014, and noted that new data collection procedures instituted by CAO and have been implemented by most departments. The Committee recommended that staff provide a highlighted performance report and give underperforming departments an opportunity to communicate what factors are hindering their performance. This is a standing referral. 2. County Financial Audit Program. Since 2000, the IOC reviews, each February, the annual schedule of audits and best practices studies proposed by the Auditor-Controller. The Auditor- Controller’s Office presented a report of their 2014 audits and the proposed 2015 Audit Schedule to the IOC on February 9, 2015. The Committee accepted the report on the status of 2014 audits and approved the 2015 plan with the direction to examine the Inmate Welfare Fund as soon as possible and to broaden the examination of the Public Works Department to include compliance with the vehicle acquisition policy. The Board of Supervisors approved the IOC’s recommendations on March 3, 2015. This is a standing referral. 3. Annual Report on Fleet Internal Service Fund and Disposition of Low Mileage Vehicles. Each year, the Public Works Department Fleet Manager has analyzed the fleet and annual vehicle usage, and made recommendations to the IOC on the budget year vehicle replacements and on the intra-County transfer of underutilized vehicles, in accordance with County policy. In FY 2008/09, following the establishment of an Internal Services Fund (ISF) for the County Fleet, to be administered by Public Works, the Board requested the IOC to review annually the Public Works department report on the fleet and on low-mileage vehicles. The Fleet Manager, in a report on February 9, 2015, highlighted that there are over 1,500 vehicles in the fleet, 859 of which are in the Internal Services Fund (ISF), identified 9 low mileage vehicles out of 859 vehicles in the Internal Services Fund Fleet and consulted with each department having low mileage vehicles. The Fleet Manager concluded that all but 4 of the 9 low mileage vehicles had compelling reasons to be maintained in the fleet. The department continues to install asset management and locating devices in ISF vehicles to promote good decision making and optimization of the ISF fleet. The Committee accepted the staff report and, on October 12, received a follow-up report on the status of "greening" the fleet. On November 17, 2015 the Board of Supervisors approved the recommended changes to the County's Vehicle and Equipment Acquisition Policy and Clean Air Vehicle Policy and Goals. The primary impact of the proposed changes is to commit to a goal of procuring the most fuel efficient and lowest emission vehicles that meet the essential vehicle requirements and specifications of departments. The policy vests authority with the Fleet Manager to determine when exemptions from the policy may be warranted. This is a standing referral. 157 4. Local Bid Preference Program. In 2005, the Board of Supervisors adopted the local bid preference ordinance to support small local businesses and stimulate the local economy, at no additional cost to the County. Under the program, if the low bid in a commodities purchase is not from a local vendor, any responsive local vendor who submitted a bid over $25,000 that was within 5% percent of the lowest bid has the option to submit a new bid. The local vendor will be awarded if the new bid is in an amount less than or equal to the lowest responsive bid, allowing the County to favor the local vendor b ut not at the expense of obtaining the lowest offered price. Since adoption of the ordinance, the IOC has continued to monitor the effects of the program through annual reports prepared and presented by the Purchasing Agent or designee. On October 12, 2015, the IOC accepted the FY 2014/15 Report from the Public Works department and requested that the Purchasing Manager provide more information in future reports about how the Local Bid Preference Program meshes with the Small Business Enterprise and Outreach Programs. On November 17, the Board of Supervisors accepted the annual report. This is a standing referral. 5. Advisory Body Candidate Screening/Interview. On December 12, 2000, the Board of Supervisors approved a policy on the process for recruiting applicants for selected advisory bodies of the Board. This policy requires an open recruitment for all vacancies to At Large seats appointed by the Board. The IOC made a determination that it would conduct interviews for At Large seats on the following bodies: Retirement Board, Fire Advisory Commission, Integrated Pest Management Advisory Committee, Planning Commission, Treasury Oversight Board, Airport Land Use Commission, Aviation Advisory Committee and the Fish & Wildlife Committee; and that screening and nomination to fill At Large seats on all other eligible bodies would be delegated to each body or a subcommittee thereof. In 2015, the IOC submitted recommendations to the Board of Supervisors to fill 18 vacant seats on various committees and commissions. The IOC interviewed 17 individuals for seats on the Airport Land Use Commission, Aviation Advisory Committee, Integrated Pest Management Advisory Committee, and the Fish & Wildlife Committee. This is a standing referral. In 2016, the IOC will recruit to fill scheduled vacancies on the County Planning Commission (At Large #2 seat), Retirement Board (BOS #4 seat), Advisory Fire Commission (At Large #1 seat), and the Resource Conservation District (three seats). 6. Process for Allocation of Propagation Funds by the Fish and Wildlife Committee. On November 22, 2010, the IOC received a status report from Department of Conservation and Development (DCD) regarding the allocation of propagation funds by the Fish and Wildlife Committee (FWC). The IOC accepted the report along with a recommendation that IOC conduct a preliminary review of annual FWC grant recommendations prior to Board of Supervisors review. On April 13, 2015 the IOC received a report from DCD proposing, on behalf of the FWC, 2015 Fish and Wildlife Propagation Fund Grant awards. The IOC approved the proposal and, on April 21, recommended grant awards for 11 projects totaling $61,155, which the Board of Supervisors unanimously approved. This is a standing referral. 7. Advisory Body Triennial Review. The Board of Supervisors has asked a number of county residents, members of businesses located in the county and/or county staff to serve on appointed 158 bodies that provide advice to the Board on matters of county or other governmental business. Members provide a resident’s, business or county staff perspective on a wide variety of policy issues or programs that the BOS oversees. Beginning in 2010 and concluding in 2011/2012, the Board of Supervisors conducted an extensive review of advisory body policies and composition, and passed Resolution Nos. 2011/497 and 2011/498, which revised and restated the Board’s governing principles for the bodies. The Resolutions dealt with all bodies, whether created by the BOS as discretionary or those that the BOS is mandated to create by state or federal rules, laws or regulations. The Resolutions directed the CAO/COB’s Office to institute a method to conduct a rotating triennial review of each body and to report on the results of that review and any resulting staff recommendations to the Board, through the IOC, on a regular basis. The first phase report of the current Triennial Review Cycle was considered by the IOC on April 13, 2015. At that time, the Supervisors approved many of the recommendations in the report. However, they also asked the CAO’s Office to return with additional information about a number of the advisory bodies. On October 12, 2015 the IOC accepted the follow-up report from the County Administrator on outstanding issues and information requests stemming from Phase 1 of the Board Advisory Body Triennial Review. The IOC reported back to the Board on December 8 with results of Phase I of the review and recommendations for follow-up. Phase II of the review is currently in progress. 8. Waste Hauler Ordinance. On May 8, 2012, the Board of Supervisors referred to the Internal Operations Committee a proposal to develop a waste hauler ordinance. The IOC received a preliminary report from the Environmental Health (EH) Division of the Health Services Department on May 14, 2012 and status report on November 13, 2013 showing substantial work and progress. The IOC requested EH staff to bring a final draft ordinance to the Committee for further consideration but staff subsequently identified issues with the interplay between the proposal and current franchise agreements that had to be examined before the County could proceed with an ordinance. On April 2015, IOC accepted a status report, and on July 27, 2015 reviewed a conceptual draft ordinance and a report outlining ten key issues on which policy direction was needed before further work on the ordinance could proceed. On October 12, 2015, the IOC provided additional policy direction to staff and asked to see a final draft ordinance at the February 2016 IOC meeting. IOC expressed preference to address the enforcement aspect of the ordinance on a separate and parallel track and directed staff to gather information from law enforcement countywide to see if enforcement costs could be estimated. The IOC asked for a commitment from the franchises to raise fees sufficient to fund enforcement of the ordinance countywide. As this continues to be a work in progress, we recommend that this referral be continued to the 2016 IOC. 9. Social Media Policy Follow-up. On June 26, 2012, the Board of Supervisors referred to the IOC the potential development of a policy governing the use of social media by County departments. The County Administrator’s Office assigned the Office of Communications and 159 Media (OCM) with the task of researching this issue and providing information to the IOC. The IOC began studying the issue in August 13, 2012 and received periodic updates over the subsequent 18 months, during which time work on the policy had to be tabled for several months due to other emerging priorities. The policy was completed and approved by the Board of Supervisors on June 17, 2014, with direction to the Communications and Media Director to work with the County Counsel and Risk Manager to prepare social media site usage guidelines, terms of use disclaimers, and staff training curriculum, and to report back to the Internal Operations Committee on the status of these efforts. 10. Animal Benefit Fund Review. On April 21, 2015, the Board of Supervisors received several comments regarding the Animal Benefit Fund from members of the public during fiscal year 2015/16 budget hearings. As part of budget deliberations, the Board directed staff to include a review of the Animal Benefit Fund to a Board Standing Committee for further review. On May 12, 2015, the Board of Supervisors adopted the fiscal year 2015/16 budget, including formal referral of this issue to the Internal Operations Committee. On September 14, 2015 IOC received a staff report summarizing prior year expenditures and current fund balance of the Animal Benefit Fund. The Committee accepted the staff report and requested a follow-up report from the new Animal Services Director approximately 90 days post-appointment regarding pending needs and possible one-time uses of the funds 11. Community Choice Energy Aggregation. On August 18, 2015, the Board of Supervisors referred to the IOC the topic of Community Choice (Energy) Aggregation. Community Choice Aggregation (CCA) is the practice of aggregating consumer electricity demand within a jurisdiction or region for purposes of procuring energy. The existing energy utility remains responsible for transmission and distribution. The most common reason for jurisdictions pursuing CCA is to promote electricity generation from renewable energy sources and offer consumers choice in purchasing electricity with potential opportunities for cost savings. The IOC took up CCA at its regular September 14, 2015 meeting and on October 13, recommended to the Board of Supervisors that outreach be conducted to Contra Costa cities and neighboring counties to gauge their interest in partnering with Contra Costa County to implement CCA. The Board directed the Conservation and Development Department (DCD) to conduct this outreach and examine the following three CCA options: forming a CCA partnership among the cities and the County, representing the unincorporated areas; partnering with Alameda County (and its cities) to form a CCA program; or joining the existing Marin Clean Energy program (which currently provides energy to three Contra Costa cities – Richmond, San Pablo and El Cerrito). Further, the Board directed DCD to reach out to Contra Costa mayors and city managers to explain the concept and gauge their interest in studying CCA options. The Board also acknowledged that outreach efforts would require a substantial amount of staff time, expertise, and experience in the field of energy aggregation and, on October 20, 2015, approved an 160 allocation of $25,000 to DCD for the study of CCA. Results of the outreach efforts will be reported to the IOC, therefore, we recommend that this matter be retained on referral. 161