03/18/1991 - Minutes UTILITY & FRANCHISE COMMITTEE MINUTES
March 18, 1991
1. The meeting was called to order at 7:00 PM.
2. ROLL CALL:
Present: Gerry McReynolds, Chairman
Michael Mieneke
Cece Dispenza
Mark Irwin
Thomas Sullivan
Elden Wogen
Don Jacobs
Mike Leichner, Pride Disposal Company
Tom Miller, Miller Sanitary Service
Larry Schmidt, Schmidt's Sanitary Service
Loreen Edin, Administrative Services Manager
Wayne Lowry, Finance Director (left at 8:51 p.m. )
Lee Kell, Legal Counsel for Haulers
3. WELCOME TO NEW MEMBERS
Chairman McReynolds welcomed Cece Dispenza and Mike Mieneke,
new members to the Committee. Loreen Edin noted that there had
not been a full Committee present since October, 1989.
4. APPROVAL OF MINUTES: 2-4-91 and 3-4-91
Motion by Committee member Jacobs, seconded by Committee member
Dispenza to approve minutes as submitted.
Approved by unanimous vote of Committee present.
5. EXECUTIVE SESSION: the Utility & Franchise Committee went into
Executive Session at 7:05 PM under the provisions of O.R.S.
192.660 (1) (f) to consider records that are exempt from public
inspection.
Committee reconvened regular session at 8: 34 PM
6. 1990 ANNUAL REPORT - RATE ADJUSTMENT RECOMMENDATION
A. Chairman McReynolds reported that the three haulers'
aggregate report from 1990 indicated a 9.78% profit
margin. He noted that City Council's guidelines for
modifying the rate structure required that the aggregate
profit not be below 8% or over 12%. McReynolds
recommended a no increase recommendation be forwarded to
Council.
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U&F Committee Minutes
March 18, 1991
Page Two
B. Motion by Committee member Wogen, seconded by Committee
member Irwin, to forward a no increase recommendation to
City Council based on the 1990 annual report.
Approved by unanimous vote of the Committee
present.
7. RATE STRUCTURE ADJUSTMENT DISCUSSION
A. Chairman McReynolds noted that Council would be advised
at the joint Committee and Council meeting on March 26
that the Committee is concerned with a disparity in the
rate structure between service types. Chairman
McReynolds noted that the proposed rate structure was not
ready for presentation to Council and that the Committee
would need to continue to work on this issue over the
next couple of months. He did suggest that the Committee
add a 20-gallon can rate for residential service.
B. Tom Miller noted that it was not known what the pass
through rate would be from METRO, though some suspect it
could be 24% or $68.00 per ton.
Consensus of Committee was to tie the pass through rate
adjustment with a request to Council for a rate structure
adjustment by the end of May or early June.
C. Committee discussion followed regarding the addition of
a curb side rate in the new structure. Consensus of
Committee was to include a curb side rate.
RECESS: 8:51 PM
RECONVENED: 8:58 PM
8. SOLID WASTE ORDINANCE LANGUAGE UPDATE
A. Loreen Edin reviewed her 3-18-91 memo with the Committee
regarding an update of ordinance language issues that had
been discussed by the City's legal counsel, Chairman
McReynolds, the haulers' legal counsel, and herself on
that date. (See attached copy of memorandum. )
B. The Committee consensus was as follows:
Item #1 & #2 Third Party Hauling of Purchased Recyclable
Goods. Committee consensus was to approve third party
purchase of recyclable goods from all customers at fair
market value.
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U&F Committee Minutes
March 18, 1991
Page Three
Item #3 Opportunity for On-Route Recycling - Consensus
of Committee was to have language clarified to show
Section 040 (i) should indicate City requested recycling
and 070 (a) (11) defined state law mandate.
Item #4 Automatic Renewal of Franchise Term and
Ordinance Amendment Process - Consensus of Committee was
to revisit this issue prior to submitting the Ordinance
for Council's review.
Item #5 Indemnity Provision - Consensus of Committee was
to modify the Ordinance language to indicate any claims
brought against the City as a result of the franchisee's
operation would be covered by the franchisee's insurance
policy and that the City be named as additional insured
on the individual policies.
Item #6 Rates - Consensus of Committee on subsection A
was to clarify that charges mean any direct charge to
haulers as a result of their service. Regarding
subsection B, Committee consensus was that a formal audit
not be recommended to Council due to the cost of service.
However, a better definition be developed suggesting a
financial review be possible as part of the rate setting
process. Subsection C - Consensus of Committee was that
Council review this as a policy issue.
Item #7 Container Requirements Consensus of Committee
was to delete the reference to the Consumer Products
Safety Commission Standards for containers, but to
require an on-going maintenance effort on all containers
by owners of the containers.
Item #8 Annual Inspection Requirement for Compactors
Loreen Edin advised Committee that she would be raising
the policy issue of whether Council wished to retain
liability of annual inspections Committee approved the
technical issue change highlighted in memo.
Item #9 Penalties Consensus of Committee on Subsection
A to recommend a civil infraction process for ordinance
violations rather than a misdemeanant process. Sub-
section B - consensus of Committee was to allow Attorney
Kell time to work with his clients and possibly develop
language which would allow the haulers to assist with
codes enforcement activity if the City were not able to
have a Codes Enforcement Officer available. Attorney
Kell will report back to the Committee.
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U&F Committee Minutes
March 18, 1991
Page Four
Technical Issues #1 - 12 Consensus of Committee was to
approve all technical issues as noted and the
Administrative Rule adoption process modification as
described in the March 18 memo.
B. Chairman McReynolds noted he would be drafting a
memorandum for Council's review which would highlight the
Committee's accomplishments for the last year. He would
also include issues the Committee would like to review or
take under consideration during the next 12-month period.
Loreen Edin noted she would draft a memorandum to the
City Council outlining ordinance language issues for
Council review prior to adoption.
9. Joint Meeting with Council
A. Chairman McReynolds reminded the Committee that the joint
study session with City Council was scheduled for March
26, 1991 at 6:00 PM. Brief discussion followed regarding
issues of discussion for that evening.
10. Adjournment at 10:11 PM.
Minutes prepared by Loreen Edin.