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05/11/1992 - Minutes 0 SOLID WASTE ADVISORY COMMITTEE MINUTES MAY 11, 1992 1. The meeting was called to order at 7:00 PM. 2. ROLL CALL: Present. Eldon Wogen, Chairman Cece Dispenza Mark Irwin Don Jacobs Gerry McReynolds Mike Leichner, Pride Disposal Company Lany Schmidt, Schmidt's Sanitary Service Bill Martin, Wash. County Haulers'Assn. Director Loreen Edin, Staff Liaison 3. COMMITTEE VACANCY UPDATE A. Chairman Wogen asked for an update on the recruitment process for a new committee member. Loreen Edin reported that she had contacted various citizens and sent application forms to those interested, however, no one had returned an interest application for consideration by the Mayor. Other Committee Members also noted they had contacted persons they felt would be interested in serving. 4. APPROVAL OF MINUTES: 4120/92 A. Committee Member Jacobs requested the minutes be corrected under item 5C to show May 11th as a Monday rather than a Tuesday. Motion by Committee Member McReynolds, seconded by Committee Member Jacobs to approve as corrected. Approved by unanimous vote of Committee present. 5. ADMINISTRATIVE RULES UPDATE A. Loreen Edin advised the Committee that Administrative Rule 92-1 (Construction Site Cleanup) had been approved by all three haulers and that the Homebuilders Association had called with questions about the language. Mr. Drake Butsch had been given notice of the proposed rule and the process by letter and this was followed up with two phone conversations. Loreen noted that this would be effective 5114192 unless the Committee felt that the time should be extended for the Homebuilders Association. B. The Committee discussed the process and determined that sufficient notice and time had been offered to the Association to respond. Motion by Committee Member McReynolds, seconded by Committee Member Jacobs to continue the normal City process and make the rule effective 5114192. Approved by unanimous vote of Committee present. 6. TIGARD'S SOLID WASTE RATE STRUCTURE UPDATE A. Loreen Edin reported that at the 4121 Council meeting, the Council directed staff to prepare a Metro Pass through with the following emphasis: • commercial subsidy of residential should not be increased, • recycling should be encouraged, and • rate change should be revenue neutral. Loreen Edin presented the 5111 rough draft of the rate schedule that had been developed by staff with review with the haulers being held earlier that day. She noted that a mini-can rate and recycling only rates had been added to residential services with the rate for "each additional can"being the same as one can service. This was to encourage recycling. The pass-through rate increase was$7.00 per ton from Metro and this along with a 3%franchise fee was added to all residential, commercial, commercial container, and drop box rates. Additionally, staff suggested rates be developed for 10 & 15 yard drop boxes, 90 gallon roll out containers, and an account reinstatement fee of$10. a PAGE 2 OF 3 SWAC MINUTES MAY 11, 1992 B. A synopsis follows of the lengthy discussion held regarding the rate structure changes. • RECYCLING ONLY FEE- Consensus of the Committee was to include a recycling only fee since citizens have called requesting this service. • RECYCLING CREDIT SYSTEM - Committee discussed the need for a more effective way to encourage recycling. The Committee suggested the credit system used in City of Sherwood had been effective to get citizens to recycle. This process originally added $1.00 per month to the residential can and was credited back out if the customer recycled at curbside at least once during the month. After lengthy discussion regarding the need to balance encouragement to recycle with the cost of implementing a credit system, Committee Member McReynolds moved to recommend to Council a rate structure that would have the dump fee increased effective 7/1/92 and a rate increase of$4.00 per month for each residential customer effective 10/1/92, with a total of$4.00 credit being available monthly to residential customers who recycle at curbside by crediting$1.00 a week for each week they recycle. Motion seconded by Committee Member Dispenza. Motion passed by a 4-1 majority vote with Committee Member Irwin voting nay. Committee Member Irwin noted that his negative vote was due to the credit system being implemented too soon for haulers to prepare for the change and for customers to be educated adequately. Larry Schmidt expressed concern about the cost of implementing this type of system since his customer base is small and the computer software & manhours needed to implement the program was expensive. C. Chairman Wogen noted that he would be present at the 5/26/92 Council meeting when the rate schedule would be heard. Loreen Edin stated that she would file a copy of the Council packet information with the Committee via mail. 7. PRICE WATERHOUSE REPORT SYNOPSIS A. Bill Martin, Executive Director of the Washington County Haulers'Association,presented a synopsis of the Price Waterhouse report on financial reporting in unincorporated Washington County. He reported that the Haulers'Association commissioned the study and had delivered it to Washington County in April. He noted that since Tigard is currently reviewing the rate structure the haulers believed this an appropriate time to share the report with Tigard's SWAC and staff. Bill Martin noted that this report, an R.W. Beck report commissioned by Gresham, and a recent City of Portland rate review, all supported each service line stand on its own, financially, to provide sufficient revenue to meet the costs of providing service to the customers. (See attached copy of the report summary which was distributed to the Committee.) B. During this discussion, the Committee members verbally supported including a rate in Tigard's schedule for NSF chargeback to the customer and an hourly rate for bulky item pickup. It was also noted that Tigard had not established a medical waste rate. The haulers will be filing a letter with Loreen Edin notifying the City of their use of a subcontractor for this service. Loreen Edin noted that this was an issue for SWAC to review over the next year. C. Bill Martin advised SWAC that Price Waterhouse would be taking Tigard's 1991 haulers financial information and putting it through the same calculation of revenue requirements as shown on Exhibit 7-C of the report with the exception that residential and commercial rates would maintain their existing subsidy. This report will be available to City staff no later than Wednesday, May 13th, to allow review prior to the City's rate material being submitted to Council for action. Loreen Edin noted that she would share the City's draft proposal with the haulers and SWAC Chair for comment prior to filing with the Council. PAGE 3 OF 3 SWAC MINUTES MAY 11, 1992 D. After further discussion, Committee consensus was to encourage the haulers to share the Price Waterhouse report with City Council in the near future. Committee Chair Wogen thanked Bill Martin for the presentation. 8. COUNCIL POLICY DIRECTION A. Consensus of the Committee was, with all due respect to the Council and its current policy direction, to continue to support each service line being profitable on its own from a private sector business logic perspective. Committee Member McReynolds expressed his concern that Council had disregarded the Committee's recommendation for rates in the past. He also expressed dissatisfaction with the change in role for the Committee and with increased staff assistance. Loreen Edin encouraged any Committee member to contact her, the City Administrator, or the Mayor and Council about concerns with the role of the Committee, haulers, or City staff in the solid waste arena. 9. OTHER BUSINESS A. Consensus of Committee was to meet again on July 20, 1992 at 7:00 PM. B. Committee Member McReynolds reported that he had been appointed interim Mayor of the King City Council. It was also noted that Pride Disposal had been selected as 'Business of the Year"in Sherwood. Committee members offered congratulations to both McReynolds and Pride. C. Chairman Wogen noted that there would be no Executive Session necessary. 10. ADJOURNMENT. Motion by Committee Member McReynolds, seconded by Committee Member Irwin to adjourn. Motion approved by unanimous vote of Committee present at 9:04 PM. le/swscnrn