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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. 0 • 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. • • 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. 9 • 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.