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12/15/1987 - Packet/ CITY OF TIGARD UTILITIES AND FRANCHISE COMMITTEE MEETING AGENDA Community Development Conference Room Members : BENZ JACOBS MoREYK0LDS GEORGE MISOVETZ IRWIN BARRETT _____ 1 . Call to Order and Roll Call . 2. Franchise recommendation. 3 . Solid Waste Issues. 4, Other Business . 5. Adjournment br/2255D MEMORANDUM CITY OF TIGARD, OREGON TO: Honorable Mayor and City Council. December 11' 1987 FROM: Wayne Lowry, Finance Director Liaison to the Utility & Franchise Committee SUBJECT: Public Utility Franchises For the past several months, the Utility and Franchise Committee has devoted it' s attention to the franchise agreements between the City of Tigard and the various public utilities operating within the City . The Committee, with the assistance of the Finance Director, has completed its research of these agreements and is prepared to forward a recommendation to the City Council to renegotiate these franchises . As shown below, franchise fees are a significant resource to the City and in total represent approximately 10% of the revenue in the General Fund. Franchise 1986-87 Actual 1981-88 Budgety'd PGE $ 429,512 $ 5Q366 NNG 100,784 158,000 PNB 3,201 5,000 GTE _���1/07_ � _� �, 100_ $ 665,204 $ 81U,000 The City entered into a franchise agreement by City Ordinance with each of the above utilities and each agreement xetn forth the rate to be paid to the City, the payment schedule, and a variety of other stipulations . The agreements are not very uniform in that some give the City authority to audit the financial records of the utility and some do not. Some call for semi—annual payments, some for annual payments, etc. A summary of the agreements is shown below. Pmt. Renegotiable Auto Audit Due Grantee [qtq, Arm __-_Dadg,__-' Notice Rat� IlREgAig 91au11 Date PGE 10/72 20 yrs 10/02 None 3 .5% Yeo No April 1 0NQ 5/82 10 yrs 5/87 30 days 3 No Yeo Semi PNB 7/73 20 yrs 7/83 6 month 3 No No March 15 GTE 3/82 10 yrs -- -- 3 Yes No March 15 In conjunction with our review of the franchise agreements, we surveyed a number of surrounding communities in the metro area to find out what these utilities are paying other municipalities. Most community' s are getting the same rates an Tigard through their franchise agreements, however, there were. several exceptions . We found that the City of Portland does riot have franchise agreements with public utilities but instead ohmn3eo them a business license fee based upon gross receipts. The rates currently being charged in Portland are as follows: Electrical 5% Gao 5% Telephone 5% Water 7% Sewer 7% Note that while most other municipalities get 3% or 3 1/2% as a franchise fee, the City of Portland is receiving 5% for the namu public right—of—way rights and privileges that we grant though our franchises . In addition, it is interesting to note that Portland, and several other small communities in the survey, receive franchise type fees from sewer and water utilities . The City of Tigard now hau two water districts operating within the City using public right—of—way, but paying no franchise fees . We also noted that PNB is currently paying the City of Eugene 5% while most other cities in the metro area are only receiving 3%. Franchises with both GTE and PGE contain similar language that entitles the City to receive the highest franchise fee rate paid by each company to any other municipality in the state of Oregon. Language in the PGE agreement allows the City to renegotiate the rate after 10 years while the GTE agreement stipulates that if during its term GTE agrees to pay a higher rate in a negotiated franchise to any city in Oregon, that higher rate shall thereafter be payable to the City of Tigard. our research indicates that both PGE and GTE du business in the City of Portland and pay a 5% fee under Portland' s business license arrangement. Although theou higher rates are not paid to Portland under a franchise, the Utility and Franchise Committee feels that the 5% rate ohoul6 be paid to Tigard because the Same privileges are being granted. Mon—Rate Provisions As noted in the summary of the franchise agreement terms, only one agreement gives the City aoouos to the financial books and accounts of the grantee. The Committee feels that an "audit clause" giving the City the right to inspect the books and financial records of each grantee is very important and should be included in each franchise agreement. Such language would allow City staff to verify that the franchise payments it receives are supported by verifiable documentation. Only one agreement requires payment of the franchise feu more frequently than on an annual basis . If all payments were paid on a quarterly basis, the City could earn an estimated $20.008 in additional interest each year and the City' s cash flow situation would be improved during the period before property taxes are collected. The Committee would like to see a section of the agreements require quarterly payments of franchise fees . The Utility and Franchise Committee envisions City staff, namely the Finance Director, City Administrator, and/or City Recorder with the assistance of the City Attorney' s office participating in the negotiation process. Thm City , would notify each grantee of our intent to negotiate and begin the process with one grantee at a time until all have been completed. As each negotiation in complete, a final ordinance will be brought before the City Council for adoption. PNB approached the City several months ago about renegotiating its franohine ordinance to exclude competitive services from the definition of gross proceeds. We would therefore recommend the renegotiation process begin with PNB. Following is a summary of the concerns that the Utility and Franchise Committee has with each franchise agreement to be addressed in the negotiation process. Summation PGE - This agreement can be renegotiated at the option of City Council . PCE currently pays the City 3 .5%, however, thmy have been found to be paying the City of Portland R%. If renegotiated, quarterly payments and an audit clause should be included in the agreement. NNO - This agreement can be renegotiated with 30 days notice at the option of City Council. NNG currently pays the City 3%, however, they are paying the City of Portland 5%. If renegotiated, quarterly payments should be included. PNB - This agreement can be renegotiated with six months notice at the option of City Council . PNB has requested that the City exclude from the definition of gross receipts, all competitive services including deregulated items . In addition, PNB currently pays 9& in the City of Portland and the City of Eugene but only 3% to the City of Tigard. Quarterly payments and an audit clause should also be included . GTE - The agreement does not include language allowing the City to renegotiate its terms . However, because they currently pay the City of Portland 5%, an argument can be made that due to the automatic increase clause, that higher nate ohnuld be paid to Tigard . If renegotiated, quarterly payments and an audit clause should be inoluded . If all public utility franchise were renegotiated at S%' the following estimated revenues would be realized using 1987-88 budget figures: Current Rates Franchise 1 I1lcIeas� PGE $ 525,008 $ 750,000 $ 225,000 NN� 150,080 250,000 100'000 PNB 5,000 8,333 3,333 GTE _13�z{V}0_ _116i,6q7_ _-8;,66i7_ $ 810,880 $ 1,226,000 $ 415,000 Recommendation The Utility and Franchise Committee, at its meeting of November 18' 1087, made a motion whioh passed unanimously to recommend to City Council that Council direct City staff to renegotiate the above referenced franchise agreements in the best interests of the City of Tigard. lw/2017D RE: REC) tLING EDUCATION & PROMOTION DEPARTMENT OF ENVIRONMENTAL QUALITY Volume III,Number 4 November-December,L987 Planning Begins In this issue:mystery workshop, award-winning Time flies, and it's time-to start smelly floats, curriculum exposure,surveys, brainstorming for next year's Recycling crime watches, and more! Awareness Week.Already Metro has gathered its volunteers to evaluate its activities in the Portland area. And a recent curriculum Media Mystery Workshop Set distribution meeting turned into an Awareness Week ideas session. if you're wondering how you can do better Is October the best time to schedule it? publicity, or how to do any publicity,you'll want to mark your calendar for Thursday What worked this year? What didn't? Who afternoon, November 19. That's when DEQ's needs to be involved? What local activities could be done statewide?Jot down your Public Affairs staff will take the mystery out of the media for wasteshed and education and thoughts and send to Alene Cordas.We'll draw promotion representatives, and others who together interested parties for a planning session later this winter;let us know if you'd use newspapers, radio and TV stations to get the word out about recycling.The afternoon is like to be included. free.For more information or to RSVP, call Alene Cordas,229-6046. Display Catches Eye . Rec clip Week Wrap-Up Here's a visual suggestion from Marianne y , p p Fitzgerald: if you're doing a presentation, From collection donations in Salem (see make a collage or display showing what's "Cause Gets Good Coverage,' this issue) to recyclable and what's not, or what's recyclable Ashland Mayor at curbside in your area. Remember to add recycling awards, from Ash lays Christmas trees--either magazine cutouts or Gordon Medaris' proclamation to the disp and activities at the Washington Park Zoo in branches pruned from living trees, or even a small, table-size tree in a pot--to the compost Portland during Metro's Awareness Day--October's Recycling Awareness Week section of your display. was a good example of the strength of local You'll find that people are more apt to ask programs around the state. questions and start talking about something To each of you who put the hours in to they can see. make these and many other activities a success: a big WELL DONE! Once again, Phoning from outside the Portland area? Use your promotional efforts were the key to a DEQ's toll-free number. 1-800-452-4011. *40 Wastesheds Receive Variances Besides major religious and secular holidays, calendar pages also list such dates as The EQC has granted variances from the day the Bottle Bill was enacted (October 1, Opportunity to Recycle rules to Gilliam, 1972) and the day the Garbage Barge left New Jefferson, Morrow, Sherman,Wheeler, and York(March 27, 1987). rural portions of Wasco wastesheds. The According to Ken Sandusky,Lane County decision focused on written notice to all Waste Management Division,20,000 garbage service customers and on the public calendars were printed on recycled paper at a involvement process in planning for education cost of$8,500. Five thousand dollars came and promotion. Other than the city of The from the county;BRING raised the rest of the Dalles, the six wastesheds are rural and offer money from sponsors listed in the calendar. no on-route collection.The Dalles is not affected by the variances. "We've made it available to wastehaulers who bought space in the calendar so they can give it to their customers,"Sandusky said, "and we'll distribute it to schoolchildren during our Reports Approved in-school presentations." Congratulations to Lane and Yamhill For more information on the 1988 Counties,whose wasteshed reports were RecycleArt calendar, call Sandusky at approved recently by DEQ.For more 687-4119, or Peter Guttchen at BRING, information, contact Elaine Glendening(Lane 683-3637. County) or Marianne Fitzgerald(Yamhill County). Hauler Watch Lessens Crime Lane County Marks Time Sam Brentano,president of Mid-Valley Waste Management Association(MVWMA), Lane County's latest promotion item is has received a Marion County Sheriff s Office guaranteed to remind residents to recycle for a certificate of commendation for his long time. Together with BRING,the County community leadership role in crime produced a 12 month calendar illustrated by prevention. Recycling coordinator Mary Kanz, drawings from local children. (Drawings were who initiated the MVWMA County Watch chosen from entries in an all-county contest; Program, also received an award for her - many pictures entered in the contest were dedication to community betterment. Since displayed around the area last spring.) the program's inception last March, drivers But the calendar isn't just pretty. It's have reported more than 25 accidents, fires, functional, and that's the reason it will hang drunken drivers, and suspicious activities. around. It includes information on preparing According to Marion County Sheriff recyclables and a directory of such collection Robert Prinslow, "your garbage man knows sites as recycling depots, buy-back centers and the neighborhoods and business second-hand stores. The "waste reducer" communities...he knows immediately if section of the directory lists a natural foods someone doesn't belong...for our office, it's store, an outlet for purchasing recycled paper like having an extra 80 pairs of eyes out there." products, and Eugene Water and Electric Board's Conservation Center. Eight hauler groups outside Marion County already have contacted Kanz for information on establishing the program in their communities; call her at 390-1370. Curriculum Goes On the Road Brochures Available RE:THINKING RECYCLING,Oregon's For maximum exposure to our remaining waste reduction and recycling curriculum limited supply of RE:THINKING developed by Karen Oehler for DEQ,recently RECYCLING packets,you might want to made appearances before nearly 1,000 distribute DEQ's newly-produced brochure teachers. It was displayed at the Joint Social about the curriculum. The brochure includes Studies,Journalism, and English Teachers a tear-ofd mail-in coupon,so you could give it "Interact"conference October 9. It also to any teachers you think might be interested attended the Mini-Mart session of the in the material.When we mail a supply of Environmental Education Association of brochures to you,we'll include a short Tip Oregon conference October 17. Other Sheet on easy, effective distribution methods. displays are scheduled for curriculum Contact Alene Cordas for your brochures, and conferences in January and February and for watch our next issue for information on a science and math teachers'meetings in March, second printing of RETHINKING April and May. RECYCLING. Teachers remarked on the completeness of the curriculum, the graphics--especially the garbage can overhead showing percentages of Astoria Reduces Rates materials that make up our garbage--and the fact that the curriculum is free. Astoria residents who use the city's containers for recycling now pay$1.25 less when they use a 20-gallon garbage can. Rate Helpwanted for the regular,32-gallon containers is$8.70 per month for one can pickup each week. Residents who use the smaller.size can but do Our thanks to AOR,BRING,Clackamas not recycle in the city's recycling containers County Recycling Task Force,Metro, and Mid-Valley Waste Management Association will not receive the reduced rate, according to „ Bob Norlander,Director of Public Works. for sponsoring inservices- teacherese for workshops--that have trained nearly 100 teachers in recycling education.Sponsoring an inservice is an excellent way to promote Computer Bottom Lines recycling education in local schools. For information on sponsoring an inservice in your How many ways can you get a recycling wasteshed, contact Alene Cordas,229-6046. message on a computer-printed billing card? If you use the bottom line of the bill,you have only about 30 spaces. Try these: RECYCLE NOW.CALL------- Yard Debris Sprouts Again RECYCLnvG SAVES. cALI.------- At its October 9 meeting, the CALL US FOR INFO ON RECYCLING. Environmental Quality Commission(EQC) received a status report on yard debris RECYCLE XMAS TREES. CALL US. recycling in the Portland area.The PLEASE RECYCLE. CALL FOR INFO. Commission will hear an informational session with a panel representing the various affected RECYCLE FIRST. CALL------ groups at its December 11 meeting in Portland. For more information,call Bill Bree,229-6975. Promotion PR-Planned The city of Portland's fall promotion is a fine example of what you can get for$21,000 from a public relations(PR)agency.The Eugene Areas Get Specifics promotion includes a hauler.-distributed(an $18,000 postage savings) flyer titled'Turn A$3,300 matching grant from the Trash into Cash and Win$1,000!";a glass,tin, Environmental Intern Program/Pacific and paper chase relay race involving city Northwest enabled BRING to hire Evergreen officials and live on-the-scene radio coverage; State College graduate Patricia Jatczak for 12 and newspaper ads in The OREGONIAN as weeks early last summer. Jatczak researched well as seven neighborhood papers.And that's and produced 25 neighborhood-specific just the start:watch for a detailed write-up in recycling brochures with information on the our next issue. Until then, call Bruce Walker hauler servicing each neighborhood, and at the city of Portland,796-7202.David where drop boxes are located. The brochures Poulshock is the PR agency handling recycling are designed to go into Eugene-Springfield promotion for the city. Neighborhood Association newsletters. The grant was cosponsored by Lane One More Time: Thanks County Solid Waste Division. To see the impressive finished products, A well-deserved thank you to DEQ's call BRING, 683-3637. Hazardous and Solid Waste Advisory Task Force.For the past 15 years,interested individuals around the state have spent long Of Tuna Fish and Other Cans hours sitting on a variety of advisory committees,clarifying and helping guide solid It's nearly impossible to remove the bottom waste management and waste reduction from the type of can that has no bottom seam. activities. With new legislative assignments MRI Corporation,the Seattle company that made to DEQ,we're once again in the process buys most of the tin cans recycled in the of setting up new,more specific advisory Northwest,will accept seamless cans even groups.Watch for more information in coming though the bottoms aren't removed.Tell your issues of this newsletter. customers/recyclers/organizations to flatten the cans as best they can to help reduce volume-based shipping costs. As always, paper labels must be removed. Setout Data Set Out Preliminary information based on July setout counts provided DEQ by companies Tins Top Last Year offering on-route collection or approved alternatives shows that between 70,000 and Speaking of tin cans, the volume of tin cans 100,000 households in Oregon are shipped to MRI from Oregon is up.30 per participating regularly in curbside recycling. cent. That's a good sign for residential One-hundred six cities provide curbside programs,because most tin cans are generated collection, although only 70 are over 4,000 in hones and recycled at curbside. population and required by law to offer curbside recycling service.For more information, call Peter Spendelow,229-5253. Study Finds Keys A study of 69 curbside programs in Oregon Bree On Board and California found that respondents listed education and promotion, in that order,as Congratulations to DEQ's Bill Bree,who keys to encourage people to recycle. The was re-elected to the National Recycling study,part of a Master's thesis,was conducted Coalition's board of directors.He also was elected to the group's executive committee as by University of Oregon graduate student a vice president in charge of membership.The Brian Foran. He interned under the Lane County Waste Management Division earlier Coalition has over 650 members and this year.The study found that the most maintains joint membership arrangements with six state or regional recycling associations. effective promotion method to increase participation was personal, door-to-door contact,and that a door hanger or flyer was the most effective printed tool. Paid radio or newspaper ads were cited by respondents as waste Not, Where Are You? the Least effective.. Containers also were effective because they make recycling We join with other recyclers around the convenient and visible, according to state to wish Captain Waste Not, aka Peter respondents. Guttchen, success in his next endeavor. If you know anyone who would like to try on the Interestingly,respondents also felt that golden sneakers that are part of the Captain's using youth to prepare recyclables was the key job description, contact BRING, 683-3637. to dealing with adults'throw-away habits. Making people aware of the environmental and long-term benefits of recycling was.more effective than was providing financial Brown Bag Makes News incentives,respondents said. For detailed information, or to purchase with a take-off on the Sak's Fifth Avenue the report,write Foran, c/o Lane Waste store to be built just two blocks from DEQ's Management, 125 E. 8th, Eugene,OR 97401. Portland office,308,000 DEQ "SACKS" catalogs were inserted in Portland-area editions of The OREGONIAN November 1. The catalog is full of alternatives for using Sun SettingTCredits household hazardous products as well as facts on and figures on solid waste. Two recycling tax credit programs are due "We want to show tri-county residents how to end soon. The pollution control facility tax to grapple with garbage and win,"said director credit program will provide credit certification Fred Hansen,adding that much of the for capital investments made prior to information came from a cooperative effort December 31, 1990. The maximum tax credit between local governments and this agency. available will decrease from 50 per cert to 25 The catalog,which is produced in the guise per cent after June 30, 1989. The plastic recycling tax credit program will provide 50 of an easily-recycled brown paper bag,is per cent tax credit for capital investments available by calling or writing DEQ, 229-5696. made prior to January 1, 1989111ese must be Copies are available in quantity to applied for before improvements are made or organizations for distribution to members. equipment is purchased. For details, contact Bob Brown,229-6237. Salem Sharing Session Trash Floats Thru Eugene With new education and promotion people Garbage--the problem and the around the state--in Albany,Bend,Columbia solution--took first prize, commercial County, and Eugene, to name a few--a little category,during the Eugene Celebration Days recycling information exchange is in order. Parade last month. Working together on the Oregon Sanitary Service Institute (OSSI) and project were BRING, Lane County Waste DEQ are co-sponsoring an informal get Management Division,Sanipac,Eugene together on Monday,November 30 from 10 Recycling, Siuslaw Disposal,and OSSI,which a.m.to 2 p.m. at the Chumaree Comfortel Inn loaned Mr.Trash and Cool Can costumes. is Salem. The $8.50 tab includes coffee and The winning float, in real life a one-ton choice of beef stroganoff or chicken stir-fry lunch. To reserve your spot, call Elaine electrical panel truck towing a 20-foot Glendening,229-5060,by November 24. equipment trailer,was a replica of the Islip Garbage Barge. BRING transformed the truck into a tugboat;the trailer was loaded with bales of recycled paper from Northwest Recycling Budget Increases Paper Fibers. Two flies and a rat (actually Deschutes County's Solid Waste Advisory children in costume--so far,no one has claimed them--}tailed the barge. Committee is increasing its budget for recycling activities by nearly$16,000,to an Bringing up the rear was the solution: two annual total of$56,000.Twenty-one thousand Siuslaw Disposal recycling collection vehicles dollars will go to Bend Recycling Team to carrying Siuslaw's Fender children dressed as conduct a Spring, 1988 pilot curbside program; newspaper and glass. $5,000 will go to Ralston Communications of . The float was one of 180 in the parade, Bend for promotional tools for the pilot which was enjoyed by over 10,000 spectators. program; and$15,000(up from $12,000 last year)will be used to reimburse haulers for recycling.costs.The remainder will be used for e Kiosk Carries Message in-staff expenses, according to Dick Johnson, g the county's public works management analyst. Randy Anderson of Star of Hope Recycling, North Bend,says that close to 10,000 people saw DEQ's kiosk display unit Pilots Take Off during his community's annual Bay Area Fair. Watch for a Spring, 1988 pilot program in He then placed the kiosk in the local shopping mall during Recycling Awareness Week; Deschutes County"similar to that in Salem several phone calls to Star of Hope requesting .and Albany,"says Johnson. "We feel our first more information were the result. aim is to educate and inform residents. That's where the money to Bend Recycling Team and If you would like to use the kiosk and Ralston Communications comes in." Next, he recycling posters, contact the recycling says, is the convenience of free containers, specialist assigned to your wasteshed, or Alene which will be distributed in targeted Bend and Cordas,229-6046. Redmond neighborhoods. The county also is considering raising financial incentives at the Phoning from outside the Portland area? Use landfill,which now stand at a 50 cent DEQ's toll-free number.•1-800-452-4011. reduction on loads of garbage brought in with 10 lbs. of recyclables. A Tale of Five Cities Garten Foundation got good coverage,too, baling the material for marketing and setting The Clackamas County Recycling Task up a display of materials for a photo Force has released results of a mail-in survey opportunity for the media on participation in recycling and yard debris Kanz sent a news release about the programs. The study covered approximately upcoming event to Salem and Portland radio 250 registered voters in each of the following and TV stations and newspapers.The day towns: Oregon City, Milwaukie,Gladstone, before the scheduled photo opportunity, she West Linn,and Lake Oswego. phoned a reminder to each newspaper and The Task Force found that more frequent broadcast station. recycling occurs when weekly curbside .collection is offered, and that the majority of She didn't depend on the media to take respondents recycle at curbside.When pictures,though,hiring a professional re sP �' photographer for the photo opportunity.Kanz curbside is offered monthly,respondents said then selected one of the pictures he took and they tend to use a drop-off center. sent it around to the media accompanied by a Respondents given a choice of yard debris short, after-the-fact news release which disposal alternatives preferred a city-wide, repeated information about the promotion weekly yard debris pick up and recycling and stated total volume collected. She got program supported with taxes less than$24 results,again: the picture and news release annually.This agrees with results of an were printed in several area papers. Oregon City election that approved funding for continuing weekly yard debris collection by Oregon City Garbage (see "Voters Mandate Voters Mandate Service Service," this issue). A U-haul drop-off center was the second Even though there was less than two weeks preference. U-request, on-call was the least from the time the Oregon City Council preferable in all five cities. scheduled an election to election day, Oregon City Garbage Company mounted a successful For more information, contact Carrie promotion that resulted in passage of a Heaton,Recycling Task Force chair, at 655- three-year special levy to fund weekly yard debris pick up in that town.The service had been financed through the city's General Fund Cause Gets Good Coverage as Part of a pilot project. When that source was eliminated,popular demand led to the Good exposure for several Salem-area search for new funding, according to Richard waste reduction and recycling firms was the Bloom of Oregon City Garbage. result of a September promotion put together "People thought that yard debris collection by Mary Kanz of MVWMA. Kanz arranged to was part of the city budget and were upset that have proceeds from one week's collection of it wasn't. We're hoping that in three years, recyclables donated to the United Way of the yard debris collection does become part of the Mid-Willamette Valley. The week's collection city budget.." resulted in a check of$3,605 from nearly 142,000 lbs. of recyclables. Kanz said that Bloom paid $450 for production and participation was about 20 per cent higher distribution of a strip flyer that explained the than usual that week. service and the cost to residents, including apartment dwellers. The Oregon City Garbage Truck also carried a banner reading "Yes on Measure 51." Call Bloom at 656-9779. RE:RECYCLING EDUC 4TIONAND PROM07IONprovides resources and ideas,for cost-effective recycling programs developed in response to the Oregon Recycling Opportunity Act.Published bimonthly by the Department of Environmental Quality, Portland, Oregon. Alene Cordas,editor. Waste Reduction Section � DEQ 811 SW 6th. Portland, Oregon 97204 RECYCN.EW(525) City of Tigard Robert W. Jean City Administrator Box 23557 Tigard, OR 97223 printed on recycled paper