MAYOR AND COUNCIL
ROCKVILLE, MARYLAND

Meeting No. 39-06
December 11, 2006

The Mayor and Council met on Monday, December 11,2006 at 7:05 p.m. Prior to the meeting, upon motion by Councilmember Hoffmann, duly seconded by Councilmember Marcuccio, and unanimously passed, the Mayor and Council met in Executive Session in the Diamondback Terrapin Conference Room at 6:15 p.m. pursuant to Section 10-508 (a) (7) of the State Government Article, Annotated Code of Maryland, to consult with counsel to seek legal advice.

Present at the Executive Session were the Mayor and Council, City Manager Scott Ullery, City Attorney Paul Glasgow, Assistant City Attorney David Podolsky, Director of Information Technology Mike Cannon, Television and  Telecommunications Manager Doug Breisch, Deputy City Manager Catherine Tuck Parrish, and City Clerk Claire Funkhouser. The Mayor and Council discussed matters related to a proposal for a franchise agreement with Verizon and the related agreement between Montgomery County and the City of Rockville

PRESENT

In attendance: City Manager Scott Ullery, City Attorney Paul T. Glasgow, and City Clerk Claire F. Funkhouser

Re: Agenda Review

City Clerk Claire Funkhouser reported that the session related to election issues had been postponed until a later date.

City Manager Scott Ullery reported that the Mayor and Council would meet with the Planning Commission this Wednesday, December 13, regarding several items related to planning issues in the Twinbrook area. 

Re: Town Center Update

Director of Community Planning and Development Services Art Chambers reported that with the Library now open, traffic is now moving through the area. A signal light at the intersection of Middle Lane and Maryland Avenue has been activated. A "soft" opening of the retail will begin in March with the Grand Opening planned for May.

Councilmember Hoffmann said that she had heard that CVS' opening had been delayed for a year. Mr. Chambers said he had not heard that, but would check on it.

Re: Zoning Ordinance Update

Mr. Chambers said that over thirty people had attended a public forum regarding the proposed changes on December 7.

Re: Presentation of an Award of Appreciation to the Mayor and Council by Alison Putnam, Director of Relationship Management, Principal Financial Group, in recognition of "Fifteen Years of Partnership" between the City of Rockville and Principal

Director of Finance Gavin Cohen joined the Mayor and Council at the podium to accept the award from Ms. Putnam. Ms. Putnam explained the important relationship between Principal Financial Group and the City. Mr. Cohen highlighted the role of the City's Retirement Board, which currently is helping to manage $70 million in assets to fund the retirement program.

Councilmember Dorsey, who is the Mayor and Council's representative on the Plan, said that the Board had spent all day on December 12 looking at the various aspects related to management of the retirement program.

Re: Appointments

Montgomery County Community TV Board of Directors

Upon motion by Councilmember Dorsey, duly seconded by Councilmember Marcuccio, and unanimously passed,  Jonathan Walker, Sr. was reappointed as Rockville's representative until December 1, 2008.

Montgomery County Cable Communications Advisory Committee

Upon motion by Councilmember Hoffmann, duly seconded by Councilmember Robbins, and unanimously passed, Kernan Chaisson was reappointed as Rockville's representative until November 1,2009.

Re: Citizens' Forum

Re: Mayor and Council's Response to Citizens' Forum

Mayor Giammo asked that the members of the Mayor and Council limit their remarks concerning the refuse and recycling program until the discussion later in this evening's agenda. Councilmember Robbins said that the current service is the "crown jewel" of Rockville and said she would support having a public hearing on it. Regarding John Moser's comments regarding leaf collection, Councilmember Marcuccio said she wanted to echo what John Moser had-said about the timing of the leaf collection.

Going back to the issue of refuse, Councilmember Hoffmann reiterated what had been requested by the Mayor, and said that she would limit her comments to after the presentation by staff. Councilmember Dorsey agreed, noting the impressive response rate of those on the route.

Re: Consent Agenda

Councilmember Marcuccio asked for some clarification about some of the financing arrangement contained in the sales and purchase agreement between the City of Rockville and MEDCO. Upon motion by Councilmember Hoffmann, duly seconded by Councilmember Dorsey, and unanimously passed by the Mayor and Council, the following items on the Consent Agenda were approved:

(A) Award of Sole Source Contract
To: LIB Service South
Of: Chambersburg, Pennsylvania
In the amount Of: Not to exceed $660,260.00 for the period through June 30, 2007 with the option to extend for one (1) additional one-year period
For: Purchase of approximately 610 Sensus radio read commercial water meters, which are various sizes

(B) Award of Bid No. 06-07
To Hydro Meter Service
Of: Pontiac, Michigan
In the amount of: $165,000.00
For: Installation of approximately 610 Sensus radio read commercial water meters, which are various sizes

(C) Approval to purchase and install an emergency electrical generator at City Hall in the amount of $320,197.00 as a Joint Procurement on Maryland State Blanket Purchase Order 001B6900107 to Curtis Engine & Equipment, Inc.

(D) Authorization of a sales and purchase agreement between the City of Rockville and Montgomery County Economic Development Corporation (MEDCO) for the Incubator/Office in the Arts and Innovation Center

Re: Refuse and Recycling Program

City Manager Scott Ullery began the presentation saying that the study of the refuse and recycling program was part of a long-term examination of the City's enterprise funds during which the precarious stability of the refuse fund came to the fore. As part of the study, in November 2005, the Mayor and Council approved initiating a pilot program in one sector of the City. Mr. Ullery said that the pilot had given the City staff the opportunity to learn many things. Part of the learning process had been soliciting feedback from pilot participants through surveys and meetings with the community. Mr. Ullery said that all of the data provided a foundation for an overall review of all of the processes associated with refuse and recycling as well as the recommendations that are to be presented this evening. Mr. Ullery then introduced Director of Public Works Craig Simoneau to present the data and staffs recommendations.

Mr. Simoneau began by saying that the recommendations presented this evening are a result of a team effort. He thanked the workers at all levels of City government as well as the citizens who had participated in the pilot.

In terms of the agenda for the presentation, Mr. Simoneau said it would consist of the following:

• Introduction
• Refuse Fund Update
• Pilot Program Results
• Refuse Program Component Review and Recommendations Final Recommendations
• Next Steps

Mr. Simoneau said that the primary issues that formed the foundation for the pilot are:

• Costs to customers are expected to increase from $31.00/month to $61.45/month by 2020 (98% increase)
• There is inequity among residents because all residents pay the same monthly charge, but are using different levels of service and generating different volumes of refuse
• The manual system limits size of waste containers (32-gallon)
• The manual system is labor intensive and promotes worker injuries
• The manual system discourages recycling:
• The current service requires curbside recycling, but permits backdoor refuse pickup The program is only achieving a 35% recycling rate while the goal is 50%
• The service is very labor intensive - refuse workers are required to go into the backyard even if there is no refuse set out
• Not all residents use or want twice-per-week collection, but all are required to pay for it (In the December 2004 survey, 55% supported once-per-week collection if they had a cart that would hold a weeks worth of garbage)
• The current system has too many confusing instructions. For example, refuse must be in 32-gallon containers weighing less than fifty pounds and the procedures regarding disposing of metal/white goods are unclear
• The current system requires too much resident time/effort to prepare for set-outs
• The current system often results in trash blowing in neighborhoods on pickup days

Mr. Simoneau said that, in addition to these concerns, the current system contributes to too much worker confusion and missed collections. In short, the current system is not fiscally, environmentally, or operationally sound.

Mr. Simoneau then gave an update on the status of the refuse fund including the projections of increasing deficits. This year's projection is not as dire, due primarily to a pause in ordering new trucks or equipment as a decision is made about any changes.

Mr. Simoneau also reviewed the pilot project, which took place from March 2006 to January 2007. The pilot consisted of once per week, curbside only, semi-automated refuse and recycling collection with carts, unlimited overflow and bulk setouts. Non-collection holiday setouts were moved to Wednesday for pilot participants. Mr. Simoneau said the goals of the pilot were to:

• Evaluate equipment needs, cart sizes, suitable route size, and staffing levels
• Gauge customer satisfaction through pre and post pilot surveys
• Gather information for future decision on volume-based-pricing
• Determine effect of new program on volume of refuse versus recycling
• Track bulk item collection data for future use

Mr. Simoneau also described the carts and other equipment that had been distributed to customers.

Mr. Simoneau continued by saying that another benefit of the pilot was to evaluate the experience of using single-stream recycling. Current collection requires customers to make several trips to the curb (blue bin, paper bags, cardboard bundles), while single stream recycling uses one wheeled cart. Easier resident setouts make it more convenient and encourages recycling. It also promotes cleaner neighborhoods by eliminating debris from blowing in yards and streets, and assists with customers' storage issues. Mr. Simoneau said that Waste Management, Inc. has a facility in Elkridge, Maryland that is single stream recycling capable and now that the City has tested single stream recycling for seven weeks, if approved it can use that facility. The City could then implement single stream recycling ahead of Montgomery County, which may not have it for 3-5 years.

Regarding public outreach, Mr. Simoneau said that the following had been part of an extensive campaign to let citizens know about the study and the pilot:

• Two public pre-pilot meetings
• Eight civic association meetings
• Five smaller neighborhood meetings
• Web site, Rockville Reports, Cable Channel II, Washington Post and Gazette articles, mailings
• Brochure, guide, literature, displays, comment cards, phone calls, emails, one-on-one contacts, surveys

Mr. Simoneau said that the outreach had recently won a national award, the "Savvy" Award for customer service outreach from the City-County Communications and Marketing Association.

Mr. Simoneau contrasted the safety record for the pilot with the current system. There were no worker injuries on the pilot route, compared with the manual system, which resulted in twenty-seven injuries last year. Of those twenty-seven injuries, twenty-one could have been eliminated in a semi-automated program; twenty-five could have been eliminated in a fully automated program. Also, seven workers are currently unable to perform duties due to injuries on manual collection.

In other results related to the pilot, the volume of refuse that was put out per household decreased by 6% on pilot route and the overall recycling rate for the pilot is 43% compared to 35% for the remainder of the City. Mr. Simoneau also stated that the response rate to a survey sent out to participants was 485, with 93% rating the pilot as very satisfactory or satisfactory. 82% strongly supported citywide implementation.

Mr. Simoneau said that these changes all fit in with the Mayor and Council's Vision for Rockville in 2020. Decisions to be made include:

• Location (curbside, back/side door)
• Method (manual, semi-automated, semi-automated with fully-automated where possible)
• Single stream recycling
• Variable-based-pricing and overflow
• Frequency of collection
• Other collection services

Based on the findings of the pilot, the implications to service delivery if the pilot is instituted city-wide would include the following:

• The side-loading recycle trucks would need to be replaced because they are not efficient; not easily adaptable to cart operations
• A range of cart sizes should be offered
• Back/side door collection would be eliminated
• Service would be automated as much as possible to eliminate lifting
• Variable pricing should be an option and would be facilitated with a variety of carts

Mr. Simoneau expanded on other elements that had enhanced the top to bottom review of the system and the pilot review of the system. These included:

• An examination of best practices of other jurisdictions Equipment demonstrations
• Talks with industry representatives
• Attention to worker morale
• The formation of a committee of refuse workers Component by component review

In terms of issues related to workers, Mr. Simoneau cited declining morale, the high rate of worker injuries caused by manual backdoor collection, and claims to Workers Compensation. Currently, six workers or 19% of the force are on light duty. This necessitates the use of temporary contract workers with little training, no commitment to the Rockville Way, and a tendency to poor customer service. Under the current system, there is tremendous difficulty recruiting and retaining workers. This past year has seen a 43% turnover rate.

Mr. Simoneau then presented the recommendations associated with every element of the refuse and recycling program, going into detail about each of the components. He summarized the recommendations, stressing that the recommendations support the implementation of a modernized, financially, and environmentally sustainable refuse and recycling program citywide in FY08.

Mr. Simoneau said that the recommendations provide for a system that has:

• Semi-automated, once-per-week, curbside only refuse and recycling collection with limited fully-automated routes (alleys)
• Variable-based pricing based on four refuse cart sizes with an extra charge for additional carts and bags/tags
• Single-stream recycling
• Utilization of the Montgomery County Transfer Station for residents to take oil, tires, batteries, and hazardous waste
• Quarterly scheduled bulk collection (including metal/white goods) with automated knuckle boom trucks for efficiency
• Enhance leaf pick-up service with automated leaf vacuums
• A transition to fully-automated collection where possible by FY12
• Provide exemptions as necessary for town homes where cart system collection will not work
• Non-collection holidays will be rescheduled to Wednesdays
• Back/side door collection for disabled and those unable to get carts to the curb

Mr. Simoneau also itemized the costs associated with implementation, both on a city wide level and per household. Mr. Simoneau said the advantages of the proposed system would be multiple including that the system would be:

• More cost-effective and sustainable
• Lower costs for fuel, personnel, operating, tipping fees, etc.
• Better for the environment
• Facilitates cleaner neighborhoods
• Makes recycling easier; increasing recycling rate
• Has less pollution from vehicles
• Would reduce worker injuries
• Permits variable-bas ed-pricing to encourage recycling and charges fees based upon use Is more equitable
• Requires less resident prep time on set-out days
• Provides for more multiple cart sizes to address storage and difficult set-outs Supports single stream recycling
• Establishes Rockville as an environmental leader in the area

Mr. Simoneau outlined next steps in the process. Outreach would include notifying pilot residents of results and transition plan through public meetings, letter to residents of changes, and a post card for cart size selection. There would also be a need to negotiate contracts for a single stream Material Recovery Facility, hauling, off-load facility, vehicles, carts, lifters, and bags/tags.

There would also need to be coordination with the union throughout. Also, there would be a requirement for a refuse charge resolution, some changes to the City Code as well as the Refuse and Recycling Regulations.

 The transition plan would involve implementation expected throughout FY08 in all aspects of the new system such as routes, training needed for new equipment, cart assembly and distribution, billing, and work with the neighborhoods

Mr. Simoneau explained why staff is not recommending twice per week, saying that it is simply too costly and that the pilot clearly indicated that once per week was satisfactory with a large group of participants. As he did with the recommendations, Mr. Simoneau described the costs associated with that alternative.

Mr. Simoneau said that another option, once a week service with a twice a week option was not preferred because of many factors revenue and operational uncertainties. Also, it is not as environmentally friendly with trucks running almost twice as much to collect same volume as once-per-week. There would be extra costs to the resident as optional service is high and extra controls needed to ensure resident is paying when setting out on second day. Route scheduling would be difficult and constantly changing to mixed collection methods (fully and semi automated) and customer changes. It is also inefficient, as workers have to constantly verify subscription list to determine stops.

In discussion, the Mayor and Council reviewed some of the options and recommendations that had been presented such as once per week versus twice per week, and automated versus semi-automated. Councilmember Hoffmann expressed concern about the physical stress of the current operation on workers. She also said she wanted to make sure that a minimum of jobs would be lost, primarily through attrition since a commitment had been made to current workers that they would not lose their jobs.

Councilmember Dorsey asked about the assignment of workers to light duty when they have been injured. Mr. Simoneau said that is the norm and that he would hope that people could return to duty sooner if a semi-automated system were put in place. Councilmember Dorsey said that he had talked with some of the workers this morning to express his appreciation of the job they were doing. He said that he was glad to hear that the City was sensitive to the issue of attrition since this discussion involved people's livelihood.

Mayor Giammo expressed his thanks to staff, saying that they had done a phenomenal job with the pilot and its analysis. He said based on the results ofthe pilot, he had great confidence in moving forward, adding that the current system is non sustainable for either a human or financial standpoint. The Mayor said that the proposed system would enhance the service while reducing costs. The Mayor also said that the amount of surveying and customer feedback was impressive. The survey indicated that 94% of the pilot participants were satisfied or highly satisfied, which the Mayor said was remarkable. The Mayor also spoke of his own very positive experience being on the pilot route, adding that he would be happy to vote on this issue tonight.

Councilmember Hoffmann said she, too, also on the pilot's route. She said she had started with a very large container not knowing what to expect, but found that a smaller container was more that adequate. She said she realized that there would be special exceptions such as King Farm, but that she was confident this could be resolved. Councilmember Hoffmann said that she was also pleased that the new system would also allow the City to move to single-stream recycling, which would be very important environmentally to the citizens. Councilmember Hoffmann cited some of the other benefits she had experienced with the pilot such as the streets being neater. She added that, in addition to the benefits, the biggest asset would be that the employees would not be working in an outmoded, somewhat unsafe, system. The fact that the financial picture would also improve was a bonus.

Councilmember Marcuccio said that she, too, had been as participant and that she also had great empathy for the workers' situation, saying that their work greatly contributed to the refuse system being considered Rockville's "jewel in the crown". However, Councilmember Marcuccio said she had concerns about switching from once per week to twice per week pick-up, citing an experience in the summer when she forgot to put out her trash and that resulted in terrible odors. She said, considering the relatively small differential in the cost recovery that was projected out to 2020, the change from once per week to twice per week did not seem to be warranted. Councilmember Hoffmann also cited some of the recommendations that had not been part of the pilot such as the removal of hazardous waste.  Councilmember Marcuccio said she endorsed the idea of a public hearing.

Councilmember Robbins said that she felt it was necessary to separate the issue of the people from the issue of the refuse, and that any implication that if someone wants to retain twice per week pickup that then they are not caring is not true. Councilmember Robbins said that she could certainly see the advantage to the semi-automatic system. She added that a public hearing is an integral part ofthe decision-making process. Councilmember Robbins said that the use of the term "crown jewel" may see strange for something like refuse service, but it was very apt. She said that she felt it was essential to hear from the citizens concerning such a change and that she could not believe that waiting a couple of weeks for a decision would make that much difference.

Councilmember Dorsey said that he had not participated in the pilot, but that he was concerned about making the right decision and wondered what the problem would be with having a public hearing. Mayor Giammo said that the positive response from a significant number of people had already convinced him of the merits of the new system.

There was some additional discussion about the merits of having a public hearing versus the merits of the substantial input received already on the pilot program by the participants. Councilmember Robbins moved to have a public hearing and Councilmember Marcuccio seconded the motion. There was further discussion about the timing of the hearing, with Councilmember Robbins saying that the hearing should be as soon as possible. With Councilmembers Dorsey, Marcuccio, and Robbins voting, "aye," and Mayor Giammo and Councilmember Hoffmann recusing themselves, a public hearing was approved. The Mayor instructed staff to schedule the hearing and asked staff to also send a letter to all pilot participants advising them of the hearing date once it is set.

Re: Adoption of a Resolution to approve a cable communications franchise agreement with Verizon Maryland, Inc.

Telecommunications and Television Manager Douglas Breisch said that the proposed agreement would grant Verizon a nonexclusive franchise to provide cable television service in Rockville. The nonexclusive franchise would authorize Verizon to offer cable services in competition with Comcast, which already has a franchise agreement with the County and the City. Mr. Breisch said the process leading to this had been a complex one, beginning in September, because the competing interests of all of the parties were being scrutinized. Negotiations have been under the supervision of a federal magistrate, who was appointed by a federal judge. The matter came before the judge through a lawsuit filed by Verizon challenging the County's cable franchise ordinance and processes. Verizon agreed to drop the lawsuit if the County approved a franchise agreement by December 1, 2006. The County Council gave final and unanimous approval to the agreement on November 28, 2006.

As proposed, Verizon will provide its cable television service via fiber optic cable it has installed initially in public-rights-of-way (ROW) and public utility easements (PUE). When a customer orders Verizon cable or other services, Verizon would then install fiber from the ROW or PUE to the customer's home. This total system is referred to as Fiber to the Premises. The City and Verizon are currently negotiating an agreement that would allow Verizon to install and keep its fiber in the City's ROW. Both sides are working to find a resolution to the issue of the ROW permit fees.

The principal terms of the franchise include:

• The franchise is for a term of 15 years
• The franchise allows Verizon to own, operate, and maintain a system in the public rightof-way to provide cable services
• Verizon will make its cable service available to Rockville residents in two phases. The first phase for the area served by Verizon's Rockville and Montrose "wire areas," which encompasses about 90% of the city's population, Verizon plans to offer service to significant numbers of residents within five years, to at least 50% of residents within four years and to all residences within five years.
• Verizon will make cable services to all multiple dwelling units, with the proviso that the owner of the building must request or consent to the service and facilities.
• Free drops at all City facilities
• Provision of eleven to thirteen analog channels for PEG use, including one countywide channel for the City's TV channel, although it may not still be same number on the lineup
• Provision of a security fund of $100,000 and a letter of credit in the amount of $2,000,000 to allow the County to enforce the franchise on a day to day basis and protect the City and County in case of a major default by Verizon.

One complication is that areas served by the Gaithersburg wire center, primarily the King Farm area, would probably not be served until significantly later. Also, connections to businesses are not part of this agreement. All of this is contingent on the City and Verizon reaching agreement on a right-of-way use agreement by December 31, 2007.

Mayor Giammo thanked Mr. Breisch and Assistant City Attorney David Podolsky for their work on the negotiations to this point. The Mayor noted that the representative from Verizon was not present at the meeting due to another meeting in Takoma Park. He expressed concerns about a number of the outstanding issues such as the lag for the King Farm area to be served and the possibility that Verizon might choose to serve higher income areas of Rockville first. The Mayor also expressed concerns about problems with customer service.

Councilmember Hoffmann asked if approving the agreement would jeopardize the City's negotiating ability regarding the Right-of-way agreement. Mr. Breisch responded that he was not sure what the impact would be. Mayor Giammo wondered if perhaps that agreement could come before the one on the agenda for this evening. Councilmember Hoffmann said she, too, wondered about the timing and sequence. Mr. Breisch responded that it was thought that the City should respond as soon as possible after the County Council had acted. Also, there was issue of the threat of the lawsuit.

Councilmember Hoffmann said that she would welcome the competition an agreement with Verizon would bring to cable subscribers, but that she had serious concerns based on the experience of Montgomery County. Mayor Giammo said he, too, supported the idea of competition, but that he had major concerns with some of the other provisions, related to the timelines for service in certain neighborhoods, and provisions for damages.

There was discussion about postponing the agreement until there was some movement on the right-of-way agreement. Councilmember Robbins said at this point the only advantage she could see to the proposal was the prospect of competition.

Mr. Ullery said he was disappointed that no one from Verizon was present and that he did not see postponement of the agreement as a major issue. Upon motion by Councilmember Marcuccio, duly seconded by Councilmember Robbins, and unanimously passed, the Mayor and Council instructed staff to bring back the agreement when a representative from Verizon could be present and for staff to continue to proceed with negotiations on the ROW agreement with Verizon.

Re: Approval of an agreement between the Mayor and Council of Rockville and Montgomery County, Maryland to provide for the County to administer and enforce the cable communications franchise agreement with Verizon within the city of Rockville.

City Manager Ullery said the discussion on this item, which was a companion to the previous item on the agenda, would also be deferred until a later date

Re: Future Agendas

City Manager Ullery noted that there would be a meeting with the Planning Commission on December 13 and that the December 18 meeting would include the College Gardens Stormwater Pond design and the Lincoln Park Neighborhood and Conservation Plans.

Re: New Business

There was discussion about the Board of Appeals action on the monopole at the monopole at Julius West Middle School. The Mayor and Council asked staff to apprise them of the latest actions of Montgomery County Public Schools in order for them to consider writing a letter to Superintendent Weast about the community's concerns.

Councilmember Marcuccio asked about the process associated with the possible renaming ofthe Rockville Library. Mr. Ullery said he would keep the Mayor and Council informed.

Re: Adjournment

There being no further business, the meeting adjourned at 10:30 p.m.