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01/27/1987 - Minutes ~ — UTILITY AND FRANCHISE COMMITTEE. Minutes of January 27, 1087 7:80 PM — Tigard Civic Center AA!,«0+7� « Members Present: Mike Wxe**Hz, Gerry McReynolds, Susan Oobnrn, Da& Jacobs, Fred Benz. Ex. Officer Members Present: Larry Schmidt, Tom Miller, Mike Ib+e-Wmr Staff Present: Bill Monahan The minutes of the November 10 and December 0, 1986, meetings were read and approved as written. The Committee discussed the solid waste rate setting procedures prepared by a subcommittee headed by Gerry McReynolds . Among the issues raised are: --- A suggestion that the commercial/industrial containers and drop boxes are not equivalent to a single can -- The user of the drop box should pay the ''dumping fee" on top of a hauling pick up fee. This would transfer the cost to those users who discard '`heaxy" materials. Considerable discussion took place regarding the change in drop box fees , The Committee recognizes that the shift would receive negative input from some customers, however' a true user rate system could develop. The Council needs to deride whether the drop box rate should be a realistic rate related to onnt or will the rate be uniform. The Committee discussed the proposal that a profit rate of 8-12% be established. The Committee proposes averaging the information contained in the annual reports of the three haulers to arrive at one rate. That rate needs to be compared to the revenues . The Committee unanimously approved the following language: The annual reports submitted by the franchisees should be averaged and the profits or loyxuo (profit rate) of the average should be used as a basis for setting the raten . It is recommended that if the profits should fall below eight percent, the rates should be adjusted to a ten percent margin. If the profits exceed twelve percent, then rates should he adjusted downward to ten percent. Mike Mirnvitz will represent the Committee when the procedure is presented to the City Council in February . The Committee and franchisees discussed complaints related to curbside recycling. The franchisees related the facts concerning individual complaints . Actions have been taken to prevent further misunderstandings. A proposal to set up a spring cleanup and toxic waste collection day was discussed . The haulers agreed to participating in a spring cleanup day . The City emphasis is on cleaning the highways, ditches, common areax . Concern was expressed that yard debris should not he allowed as the collection effort can get out of control. At the February meeting further discussion will be held. The haulers will submit cost estimates . The City will determine potential sources of manpower and responsibility assignments . Fred Benz will write up a list of ideas for the project. An April or May Saturday is planned for the cleanup day . Utility & Franchise Committee Minutes Meeting of January 27, 1987 Page 2 Information on a toxic waste collection day, possibly sponsored by Metro, will be gathered for the February meeting. Bill presented an :issue raised by at Tigard resident requesting clarification can the policy of using :in ground cans . King City allows them, Tigard doesn't. SAIF and OSHA problems related to the use of in ground cans were discussed. Although the insurance companies used by the haulers will not say that they will not insure them if in ground cans are employed by customers, there is a clear understanding that: problems would result. Frank' s Disposal Service did provide service, contrary to the franchise agreement. Pride has assumed Frank' s area and is trying to eliminate the practice. King City has 85% below ground cans . The hauler in King City, therefore, must provide the service until the consumers change their containers . The hauler cannot refuse to pick up those cans given the usage rate. Bill encouraged committee members to consider applying for the City Center Plan Task Force. The meeting ended at 8:45 PM. The next meeting will be he Id on February 24, 1987 at 7:00 PM. WAM:cn/0582W