Resolution No. 96-03 A
CITY OF TIGARD,OREGON
RESOLUTION NO.Q{L L
A RESOLUTION OF THE TIGARD CITY COUNCIL FORMALIZING COUNCIL POLICIES
AFFECTING SOLID WASTE RATE ACTIONS.
WHEREAS,the Tigard City Council desires to manage solid waste rates in a manner which is
consistent with the Solid Waste Management Ordinance(TMC 11.04);and
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WHEREAS,the Solid Waste Industry and recycling programs continue to rapidly change;and
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„ t WHEREAS,the Tigard City Council wishes to establish policies for solid waste management to
- insure rates are just,fair,reasonable and adequate to provide necessary service to the public;and r ui
WHEREAS,the Tigard City Council has determined that there should be formal recognition of � s "
Council policies for(1)how the commercial rate subsidy of residential rates will be modified
overtime,and,(2)what rate of return will be allowed for haulers on their operating margin. e
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
SECTION]: The Tigard City Council will use the following policy when it reviews any
changes to the residential or commercial solid waste rates in an effort to reduce
the commercial subsidy of residential service rates over a period of time: ¢¢ #
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"( COMMERCIAL.RATE SUBSIDY REDUCTION POLICY
It is the desire of the Tigard City Council to eventually have each solid waste w
' service type be.profitable on its own. Since there currently exists a commercial
subsidy of the residential rates,a phased-in reduction of the subsidy over an n
extended period of time is anticipated..The subsidy will be reduced to the extent
competitive rates allow and at increments acceptable to the City Council. t¢ sy
' This policy will be reviewed each time Council considers solid waste rate F
adjustments in the future. F
In order to preserve competitive residential rates in the City of Tigard,the '
s residential rates will not exceed the average rate for the same residential services ;
., in the abutting communities to Tigard: Tualatin,Beaverton,Lake Oswego, y
and Portland.
RESOLUTION NO.96-C3
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SECTION 2: The Finance Director will use the following policy when computing the solid
waste haulers'rate of return:
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OPERATING.MARGIN/RATE OF RETURN POLICY s
The Operating Margin,or rate of return.,will be calculated on the before tax net 512,
profit as a percentage of gross revenue. The Finance Director will review the
Solid Waste Haulers'annual financial reports and gather any clarifications z
-� deemed necessary from the haulers or their designated representatives each
: year.
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The Finance Director,after being satisfied that the reports are complete and
property:lied out in accordance v.:th the instructions provided,will determine
the"profit rate"by the aggregate pre-tax net income of the haulers as a percentage ,
of aggregate gross revenues. e�
The Finance Director will then report the results to the City Administrator,the
Mayor and City Council. If the aggregate profit rate falls below eight Dereent
(8%)the solid waste rates charged by the haulers,the City Council shall consider
an adjustment to provide a ten percent(10%)margin. If the aggregate profit rates ._?.
exceed twelve percent(12%),the City Council shall consider an adjustment
*� downward to provide a ten percent(1 0%)margin.
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After consideration of all information provided in the annual reports,staffwill z ,:
submit the results of the rate setting procedure and recommendations for rate
adjustments,if necessary,to the City Council_
PASSED:.. .'Phis . day of January,1996_
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�M or-City of Tigaz €
ATTEST:
City Recorder-City of Tigard
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; .. RESOLUTION NO.96-Ca.3.
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