05/20/1991 - Minutes r
UTILITY & FRANCHISE COMMITTEE MINUTES
May 20, 1991
1. The meeting was called to order at 7:00 PM.
2. ROLL CALL:
Present: Gerry McReynolds, Chairman
Thomas Sullivan Don Jacobs
Mark Irwin Mike Meinecke
Mike Leichner, Pride Disposal Company
Tom Miller, Miller Sanitary Service
Larry Schmidt, Schmidt's Sanitary Service
Loreen Edin, Staff Liaison
3 . APPROVAL OF MINUTES: 4/22/91
Motion by Committee Member Jacobs, seconded by Committee Member
Sullivan to approve as submitted. Approved by unanimous vote
of Committee present
4. SOLID WASTE ORDINANCE RECOMMENDATION FOR COUNCIL
Committee discussed the definition of "placed out for
collection" and determined that while the language was not
perfect, it would be best to include in the ordinance noting
that revision may be necessary in the future.
Committee discussed whether new language in section 11. 04.130A
should state a public hearing "may" be held immediately versus
changing it to "shall" . Consensus of the Committee was to
leave the word "may" in the recommended ordinance.
Consensus of Committee was to submit the ordinance as drafted
for Council adoption on 6/11/91. The Committee noted concern
that Council understand the ordinance will need to be revised
again in the near future due to constant industry changes as
well as pending state legislative actions.
5. RATE STRUCTURE ADJUSTMENT DISCUSSION AND RECOMMENDATION
Chairman McReynolds advised the Committee that the weight
assumptions used by the City and recommended by Metro do not
appear accurate based on a weight sampling taken by Pride.
Type of Service Metro/City Sampling Results
Residential 32 gal. can 35 # 25 #
Commercial Loose 1 yard 200 # 150 #
Commercial Compacted 1 yd. 500 # 400 #
Chairman McReynolds noted that the Committee had three options
to consider for computing the pass through rate change. The
pass through is $13 .00 per ton.
U&F Committee Minutes
May 20, 1991
Page Two
(A) Use the same method the City has historically used since
1987 and compute the pass through on the Metro
recommended weights and spread throughout the rate
structure. This would result in $1.00 per can increase
for residential customers.
(B) Use the same method the City has historically used since
1987 except base the assumption on the sampling weight
results and spread throughout the rate structure. This
would result in a $.70 per can increase for residential
customers.
(C) Spread the pass through increase to residential customers
only in an attempt to relieve the apparent rate structure
inequities between service types. This would result in
a $1.95 per can increase for residential customers.
Chairman McReynolds suggested that a financial and operational
audit of the haulers' businesses was needed based on the
following concerns discussed by the Committee: weight
assumption differences; rate structure inequity; cost
allocation inconsistencies; service level definitions; and the
need to establish a methodology for rate establishment.
Lengthy discussion followed. Recommendation to City Council:
the Committee noted while it appeared that historically thecelo"
City may be required to pass through the increase based on it
(A) above, method (C) would referred by the Committee �•
(though Pride Disposal''�upport b m'1thod (A) above) . Method (C) ��Iq
was seen to begin the rate structure modification to relieve �t
inequity concerns by the Committee between service types.
RECESS: 8:50 PM
RECONVENE: 9:00 PM
6. COMMITTEE SCOPE DISCUSSION
Staff Liaison Edin presented a discussion draft of a revised
functions and duties list for the Committee. She suggested the
Committee focus on solid waste management exclusively due to
the constant changes in the industry.
After some discussion, the Committee offered suggested
amendments to the list and recommended forwarding to the
Council with a recommendation of approval.
U&F Committee Minutes
May 20, 1991
Page Three
7. OTHER BUSINESS
Committee member Mieneke reported that he had a plastics
collection program in place at the Phil Lewis School. He
reported this was open for the general public during school
hours.
8. ADJOURNMENT: 9: 30 PM
Minutes prepared by Loreen Edin