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05/06/1987 - Packet CITY OF TIGARD utilities and Franchise Committee Meeting Agenda Wednesday, May 6, 1087 - 7:00 PM Tigard City Hall - Town Hall Conference Room MEMBERS: Benz p~ Jacobs McReynolds ynoldy Minuvetz Osborne /u Barrett 1 . Call to order and roll call 2. Minutes of April B. 1087 meeting 3 . Follow-up from previous meeting 4. Rate review procedure refinements 5. Rate structures 6. Storm drain systems ^ 7. Other business 8 . Adjournment WL:on/1304W MEMORANDUM CITY OF TIGARD, OREGON TO: Utility and Franchise Committee May 1, 1987 FROM: Wayne Lowry, Finance Director �f SUBJECT: Follow-'up to Meeting of April 8^ 1987 I was asked to review some of the figures from the Pride Disposal annual report recently submitted to the Committee. Fred Benz asked that I specifically look into the $140,510 interest paid figure reported under "Other Costs . '' I contacted Pride Disposal ' s accountant and found that $54,526 was related to interest on equipment purchases and $94,900 was interest paid on a note related to the purchase of the business . The intent of the annual report is to reflect all expenses of hauling garbage in Tigard. The $94,998 is considered an investment cost and, therefore, should be disallowed as a reportable item. Taking into account this adjustment and the adjustment for amortization of $48,501 discussed in our last meeting, the rate of return on the average is 11 .0%; therefore, no adjustment for rate of return is necessary . Mike Misnoetz conducted a phone poll in order to change the Committee' s recommendation to a pass through of the Metro increase only . That recommendation was tabled until the May 5, 1987 Council meeting at which time it will be considered . WL:on/1304W of T --- k The Oregonian staff v it w ike, View-Master Ideal Group Inc., Louisiana-Pacific Corp., r` Pope&Talbot and Precision Cast / - Marty Zell (left) and his son, Jeffre parts Corp. were the star per- / Jf�� .. third generations of the longtime f formers among Portland based '.'' '� play some of the merchandise they a companies last year. Each of them saw their net income gain more than 100 percent from the previous f` year. New Zell '' The diverse products represent ed,in these companies is good news ;� '. � � �-=":.�=;-<_-_: for the overall Portland economy. Athletic shoes, toys, forest prod- ucts rod 'fantasy �� ucts and castings for the aerospace industry give the area a good prod How they rate - u x for its economic base. By KEN HAMBURG .,e strength of these diverse The 20 largest publicly held non-financial institutions in the Portland area based on latest calendar or of The Oregonian staff companies help offset the weak- fiscal-year revenues are listed below. Revenue refers to sales, gross revenue or other broad measure of ness of the high-technology busi- income. Net income is the final earnings figure after adjustments for extraordinary items, taxes, preferred ong-time Portland jeweler ; nesses last year. stock payments and others. Profit margin is the percentage of net income to revenue. Marty Zell beams as brightly 1 While these were the premieras one of his dazzling gem- performers in 1986, more of the 20 Revenue Net income %profit 1 largest corporations showed (millions) (millions) margin stones as he ushers a visitor through his posh new offices four floors improvement last year than in Year above the spot where his father and t 1985, Seven had lower earnings 186 '85 Company 1986 1985 %chug. 1986 1985 %chug. 186 185 end three uncles opened their downtown i than the year before, two of them 1 1 PacifiCorp $2,066.9 $1,984.5 4.2 $230.7 $216.3 6.7 11.2 11.1 12/86 Portland store 55 years ago. j landing in the loss column.In 1985, 2 - Fred Meyer 1,688.2 1,583.8 6.6 22.5 19.5 15.7 1.3 1.2 1/87 That Zell Brothers Jewelry store nine were unable to improve on 3 3 Louisiana-Pacific 1,506.2 1,260.9 19.5 64.9 25.5 154.5 4.3 2.0 12/86 has since moved, to the corner of t 'their earnings. Seven companies 4 2 Tektronix 1,352.2 1,438.1 -6.0 39.3 90.2 -56.4 2.9 6.3 5/86 Southwest Park Avenue and Morri- t also showed lower revenue last 5 4 Willamette Industries 1,200.2 1,152.1 4.2 74.7 60.2 24.1 6.2 5.2 12/86 son Street, and Zell still can see it t year. 6 5 Nike 1,069.2 946.4 13.0 59.2 10.3 474.8 5.5 1.1 5/86 ,The metropolitan area produced 7 6 Portland General Corp. 759.8 826.6 -8.1 15.8 134.9 -88.3 2.1 16.3 12/86 just by looking out the window. silt billion-dollar companies, 8 7 NERCO 594.7 533.9 11.4 57.5 39.5 45.6 9.7 7.4 12/86 But Zell, who resigned as vice I inpluding one,;PacifiCorp, that 9 9 Pacific Telecom 488.7 460.9 6.0 44.2 34.8 27.0 9.0 7.6 12/86 president of Zell Brothers last fall, topped the$2 billion level. In 1985, 10 12 Precision Castparts '325.0 192.4 68.9 '19.0 9.3 104.3 '5.8 4.8 3/87 looks more to the future than to that four were in the select group.Fred 11 8 Northwest Natural Gas 314.9 412.2 -23.6 17.5 20.1 -12.9 5.6 4.9 12/86 particular past. A - Inc., rejoined the list as it 12 10 Pope&Talbot 310.2 325.2 4.6 15.8 6.6 139.4 5.1 2.0 12/86 His new business, Marty Zell & c ret....ned to a public company sta- 13 11 Sprouse-Reitz 205.6 202.8 1.4 2.5 3.5 -28.6 1.2 1.7 1/87 Associates, which includes his son, tus after an absence of several 14 13 Mentor Graphics 173.5 136.7 26.9 11.0 8.0 37.5 6.3 5.9 12/86 Jeffrey,and three former Zell Broth- l years as a privately held firm. It 15 19 View-Master Ideal 106.2 51.7 105.4 5.4 1.5 260.0 5.1 2.9 12/86 ers employees, represents a return f 16 16 Cascade Corp. 98.7 86.7 13.8 5.6 5.6 - 5.7 6.5 1/87 finished its fiscal year in January - ------ - to the small family-owned enterprise 1 with sales of $1.69 billion, second 17 18 American Network 91.6 66.9 36.9 3.0 (6.6) N/A 3.3 -9.9 12/86 with the personal touch that he says only to PacifiCorp's $2.07 billion. 18 14 Floating Point 88.6 126.6 -30.0 (14.3) 14.4 N/A -16.1 11.3 10/86 got lost after the company was I 19 15 GranTree 87.7 91.1 -3.7 (5.4) 0.2 N/A -6.2 02 10/86 PacifiCorp is the first Portland- acquired by a national corporation I based company to top$2 billion in 20 17 Electro-Scientific 70.6 84.1 -16.1 1.9 8.6 -77.9 2.7 10.2 5/86 several years ago. 1 a n n u a l revenue s i n c e 'Estimated;N/A-Not applicable The Oregonian It also represents"a fantasy final- 1 Georgia-Pacific Corp.claimed Port ly come true,"Zell said. 1 land as its home. to 15th. quisitions and is to be the "undis- a sizable loss in its nine-month The new offices on the fifth floor t Nike joins billion-dollar list Much of Precision Castparts' puted leader in the manufeture period. of the Pioneer Park Building are improvement, which includes dou- and marketing of panel products," The most startling reversal was decorated in muted blue and gray :Nike became a billion-dollar bling its earnings, is tied to its according to its annual report. suffered by Floating Point Sys- and offer soft background music and company for the first time with a acquisition of the Airfoils Division Pope &Talbot also benefitted tems.In the space of a few days last plush easy chairs for customers.Zell 1 13 percent increase in sales to$1.07 from TRW Inc. from improved business for forest July, its stock tumbled after the said the shop is patterned after up- billion. The three others have Castparts turned a losing unit products concerns. Although its company reported sales and earn- scale jewelry"salons"that might be 1 repeated for a number of years.UP into profitability. This,along with sales declined from the prior year, ings would be lower than expected. found in New York, Chicago or Los 1 is No.3,followed by Tektronix Inc. cost reductions and improved pro- earnings more than doubled on It finished its fiscal year last Angeles. and Willamette Industries as the ductivity helped boost earnings. improved productivity.It declared October with a loss and a 30 per- "There are other upstairs jewel- accompanying table shows. The Business was so good and the stock a 2-far-1 stock split last week. cent drop in sales. ers in Portland, but they don't have 1 0 M Cq 0 8:30-9:00 Arrival and Registration on Innovative Workable Promo- Q tion Techniques From Around 41 9:00-9:10 Welcome and Introductions by the Country and Update on AOR President,Bill Webber Q, Oregon Legislature. 9:15-10:30 Speaker:Karen Oehler,develop- r. er of DEQ's unique Oregon re- 1:15-2:15 Concurrent Sessions 1. Profit by Your Promotion cycling curriculum and Peter Gutt- > - through graphics,slide shows, chen,BRING Recycling.See the new curriculum and leafair booths,etc.rn how 0 How to get your message P-N ts to help get it into your across local schools. N 0 Tools of the trade 10:30-10:45 Break and Exhibits 0 Reducingcosts 0 0 Short cuts 0 Tricks of the trade 10:45-12:00 Concurrent Sessions 41. Recycling Promotion from the 2. Working with Your Local tC)r. collector's point of view. Government Educating your customers 0 How to develop it Problems encountered in 0 Who are the participants collection 0 What are their responsibili- 0 11� M 0 How promotion could help ties Q) 2. How to develop a Public Rela- 0 What are the rewards tions plan. 110 0 0 Developing a timeline 2:15-2:30 Break and Exhibits -.4 U Cr w 0 Estimating costs r * Intermediate details 2:30-3:30 Break into Small Groups for in- formal exchange of ideas and 0 Pitfalls to avoid Cz 44 programs being used. M Noon-1:00 Lunch Q) Guest Speaker:Jerry Powell,Re- 3:30-3:45 Wrap-Up,Closing Announce- U ments source Conservation Consultants, 00 4 bo Qd L. U " X 00 0 Qd 0 E N L,4 MU Memorandum 2000 S.W.First Avenue Portland,OR 9701-5398 5031221-1646 Date: May 15, 1987 To: Local Government Officials From: Rena Cusma Executive Officer, Metropolitan Service District Regarding: Summary of Solid Waste Planning Project, FYI Metro is currently initiating a major planning effort to update the regional Solid Waste Management Plan. The emphasis of this project is to build consensus for planning and siting of solid waste facilities through a regional partnership comprised of Metro, cities, counties, refuse haulers, citizens and other affected parties. It is intended that the updated Solid Waste Plan identify a comprehensive solid waste management system which incorporates the following key elements. * Provisions for reduce, reuse, recycle, recover, diversion and landfill. * Locations and types of necessary facilities. * Consistency between the Solid Waste Management Plan, local land use plans and state programs. * Defined roles and responsibilities for the ongoing cooperative regional partnership to implement and update the plan. * Continued citizen participation in plan development and implementation. * Recognition of a system that is regionally balanced, cost effective, technically feasible and environmentally and publicly acceptable. The plan will include, and use as a basis, the recently adopted Waste Reduction Program (May, 1986) . Further, it will be developed as a functional plan in accordance with ORS 268.390, Metro Ordinance No.86-207 and Resolution No. 87-740. These documents designate solid waste as appropriate for development of a functional plan. HISTORY- OF THE REGIONAL SOLID WASTE MANAGEMENT PLAN The Solid Waste Management Plan currently consists of two documents including the Solid Waste Management Action Plan, adopted in 1974, and the Solid Waste Reduction Program, adopted in 1986. Since adoption of these documents by the Metro Council, a comprehensive update and integration of these documents has not been completed. An update is needed because the Solid Waste Management Action Plan document is out of date, waste management priorities have changed, and an adversary instead of cooperative relationship has developed in siting solid waste facilities. The 1974 Solid Waste Management Action Plan examined four options for management of the region's waste. The recommended option was a system of four milling and transfer stations, sanitary landfills and recovery of ferrous metals and corrugated paper for resale to markets. The milling stations would reduce the waste to a homogenous mass of small pieces. Magnetic separators would be used to reclaim ferrous metals. If proven economical, conveyor belts would be added to hand-pick corrugated paper. -The remaining waste would be shipped to a sanitary landfill. After adoption of this alternative, the Metro Council amended the Solid Waste Management Action Plan by reducing the number of milling and transfer stations from four to two, plus one transfer station in Washington County. The Solid Waste Management Action Plan also identified criteria for locating solid waste facilities and general locations for the facilities. The 1986 Waste Reduction Program consists of three �n�l REGIONAL SOLID WASTE MANAGEMENT PLAN KICK-OFF MEETING Friday, June 5, 1987 9 : 00 a.m. Metro Center Council Chamber PRELIMINARY AGENDA 1. Welcome and Introduction The need to update the Regional Solid Waste Management Plan 2. Discussion of Local Government Role in Regional Solid Waste Management Plan Update 3. Discussion of Plan Development Process 4. Summary and Adjourn ^~ -^ CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY AGENDA OF: April 20, 1987 un/E Souru/ /Eu: ISSUE/AGENDA TITLE: Solid Waste PREVIOUS ACTION: METRO Rate Increase P�ss Throuqh PREPARED BY: Wayne Lowry DEPT HEAD OK CITY ADMIN OK REQUESTED BY: Utility & FraWhise Com. POLICY ISSUE Shall garbage colleotion rates be increased by $. 15 per can to pass through to garbage consumers for the Metropolitan Service Di trnt increase of $2.82 per ton effective April 1, 1087. INFORMATION SUMMARY The Metropolitan Service District announced a $2.32 per ton increase in dump fees effective April 1^ 1987. Section 11.04.000 (c) of the Tigard Municipal Code provides for the increase of garbage collection rates by resolution for increases in charges to the franchises for solid waste disposal site fees imposed by a governmental agency . ALTERNATIVES CONSIDERED 1. Approve requested increase to allow franchise haulers to pass through increase of dumping fees. 2. Disapprove requested increase. FISCAL IMPACT Minimal increase in franchise fees collected from franchise garbage haulers. SUGGESTED ACTION The Utility and Franchise Committee and staff recommend that the Council approve a resolution to increase the solid waste disposal rate schedule by $. 16 per can to pass through the METRO dumping fee increase to garbage customers. LW:cw/4609A/1 MEMORANDUM CITY OF TIGARD, OREGON TO: Honorable Mayor and City Council April 13, 1987 FROM: Wayne Lowry, Finance Director I'/(-// SUBJECT: METRO Solid Waste Disposal Fee Increase and Rate Setting Procedure As requested by City Council, the Utility and Franchise Committee developed a rate setting procedure to be used as a tool in evaluating garbage rates for solid waste disposal. The procedure was presented to Council on February 17, 1987. Council referred the rate review procedure to the Finance Director for further review and evaluation. I have reviewed the rate setting procedure developed by the Utility and Franchise Committee. I have also reviewed the annual reports filed by the franchise solid waste haulers, and the City Attorney' s memo dated February 23, 1987. The procedure, as presented to the Council in February, is a useful tool in evaluating the average rate of return of the Franchise Solid Waste Haulers, and thereby evaluating the adequacy of the rates charged to Tigard citizens for garbage collection. The results of the rate review procedure should not be the determining factor alone, but should be considered along with other data such as the rates charged to surrounding areas, the degree of service provided, and the soundness of management of the garbage haulers themselves. The Utility and Franchise Committee has completed a preliminary review of the Annual Reports submitted by the garbage haulers and has determined that no increase is necessary at this time. The Committee would like to again submit the rate review procedure to the Council as a basic tool to be used by the Committee in reviewing garbage rates . The Committee intends to further refine the procedure to incorporate other factors in addition to the rate of return and will., at that time, submit the finalized procedure to Council . Although no adjustment in rates is necessary at this time to provide a reasonable rate of return to garbage haulers, the Utility and Franchise Committee has recommended to the City Council an increase in garbage rates of $. 15 per can to allow garbage haulers to pass through the Metropolitan Service District solid waste dumping fee increase that became effective April 1, 1987. WL:cw/4609/3 CITY OF TIGARD, OREGON RESOLUTION NO. 87- A RESOLUTION OF THE TIGARD CITY COUNCIL INCREASING GARBAGE RATES DUE TO DISPOSAL SITE FEE INCREASE WHEREAS, Metropolitan Service District (METRO) has announced solid waste disposal increases at dump sites of $2.32 per ton effective April 1, 1987, and WHEREAS, increases in charges to the solid waste disposal franchises for disposal site fees imposed by a governmental agency may be included in consumer rates established by the Council by resolution provided they are evenly distributed among the rates, and WHEREAS, the Utility and Franchise Committee met on March 18, 1987 and reviewed the proposal of the solid waste disposal companies and recommended unanimously that the Council approve an emergency measure to pass a temporary rate increase to cover disposal site fee increases imposed by the Metropolitan Service District, and WHEREAS, the increase proposed will result in a $. 15 per can per month cost to consumers, or $.23 per cubic yard of loose material or $.52 per cubic yard of compacted material, and WHEREAS, the City Council recognizes the need for prompt action to ensure a timely pass through of this government agency imposed operating cost increase; and NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: Section 1 : The Tigard City Council wishes to increase current garbage franchise collection rates to reflect a complete pass through of increased METRO garbage disposal site fees, to be effective April 1, 1987. Said increases are reflected in the attached Exhibit "A. " PASSED: This day of 1987. Mayor - City of Tigard ATTEST: City Recorder - City of Tigard RESOLUTION NO. 87- Page 1 _ EXHIBIT "A" SOLID WASTE DISPOSAL TIGARD SCHEDULE OF RATES — APRIL 1, 1987 RESIDENTIAL RATES One Can $ 8.25 On Call Service $ 4. 10 Two Cans $15.60 Each Additional $ 8.35 COMMERCIAL RATES Number of Cans One Two Three Four Five One $ 8.75 $16.80 $25.05 $33 .30 $41.75 Two $16.30 $31.20 $46.60 $62.20 $77.60 Each Additional $ 6.55 $13.10 $19.45 $25.90 $32.35 br3088P RESOLUTION NO. 87— Page 2 EXHIBIT "A" (Cont. ) CITY OF TIGARD CONTAINER SERVICE - LOOSE Container Size Stops Per Week One Two Three Four Five One Yard 48.43 89.56 128.69 Each Additional One and 1/4 yards 56.49 103.78 148.77 192.46 230.25 Each Additional 50. 19 92.28 132.57 171.46 205.25 One and 1/2 yards 64.35 124.10 177.65 225.60 272.75 . Each Additional 58.95 109. 10 159.65 201.40 242.45 Two Yard 84.86 160.82 229.48 291.04 351. 10 Each Additional 76.76 140.82 196.48 246.84 296.20 Three Yard 109.49 205.38 290.17 364.66 445.95 Each Additional 100.49 190.38 272.27 352.66 430.95 Four Yard 134.02 250.54 365.66 466.78 560. 10 Each Additional 126.02 242.54 353 .66 458.68 549.20 Five Yard 155.65 300.30 438.05 568.50 682.45 Each Additional 150.45 285.00 415.55 540.60 657.45 Six Yard 172. 18 331 . 16 484.14 626.92 766.10 Each Additional 165.08 Ak 319. 16 466.04 597.32 728.10 Eight Yard 208.44 399. 18 . 579.72 752.46 913.80 Each Additional 200. 14 383. 18 555.92 720.56 873.80 CONTAINER SERVICE - COMPACTED Stops Per Week Container Size One Two Three Four Five One Yard 111.82 205.54 294.56 381 . 18 455.80 Two Yard 169.84 321.88 459.32 582.56 702.90 Three Yard 219.06 411.02 580.98 729.84 892.90 RESOLUTION NO. 87- Page 3 w EXHIBIT "A" (Cont. ) DROP BOX SERVICE Drop Box Size Regular Service Occasional Service Twenty Yard Box 116.80 127.40 51.10 Rental 4.70/day after 48 hr. Thirty Yard Box 150.70 161.80 68.20 Rental 6.20/day after 48 hr. MISCELLANEOUS RATES A) Court apartments E) Return for pickup of . five or more units inaccessible can 7.80 1 stop per week $ 6.55 F) Extra distance —lt 2 stop pdr week $ 13. 10 per foot after the first 100 feet B) Extra garbage per can $ 2.75 C) Call Backs $ 7.80 D) Bundles, boxed refuse, the first 100 ft or bags equivalent amount of one can $ 2.75 WAM:br/3088P RESOLUTION NO. 87— Page 4 METRO 2000 S.W.First Avenue Portland,OR 97201-5398 503/221-1646 February 9, 1987 Mr. Robert Jean, City Administrator City of Tigard P. O: Box 23397 Tigard, OR 97223 Dear M� =: Metro Council Richard Waker Over the past several months the Metropolitan Service Presidint Officer nistrict District :(Metro) has been conducting its annual Solid Jim t Gardner Waste Rate Study. The 1987 Rate Stud of disposal fees Lk y Pmidi� Y- Y P 0g,"•r has been completed. The Metro Council received public District 3 Mike Ragsdale testimony and input from its citizen Rate Review Committee Dislridl and has set rates to go into effect April 1, 1987. The CorkYKirkpatrick adopted rates are 'lower than the proposed rates of which TomDeJardin you were notified in early December. The rates charged at Tom De Districts Metro sites and Metro fees charged at non-Metro sites are George Van Bergen being implemented this spring to allow sufficient time for Di;tricf 6 Sharron Kelley waste collectors and the regulating..jurisdictions to make District adjustments in theiroperations, if needed (e.g,. , commence Mike Bonner recycling programs or new fee structures) . District 8 T ict9ll�er Disposal at the St. Johns Landfill will cost $16.70 per Larry cooper ton for commercial haulers and $3.50 per cubic yard for Diarict 10 David Knowles public haulers- At the Clackamas Transfer & Recycling District 11 Center , the fees will be $19.70 and $3.90, respectively. G Distrary ict n Hansen Metro encourages, however , the use of alternative Executive Officer facilities, wherever possible. The Metro User Fee or the Rena Cusma Regional Transfer Charge will be imposed according to the enclosed table. The increase to commercial haulers at the St. Johns Landfill and CTRC is $2.32 per ton. The change translates to about 20¢ per month extra for one-can-per-week collection service to residences, $2.75 per month for two-cubic-yard-per-week service to businesses, and $6.00 per 20-yard drop box. The rates are higher due to waste reduction and diversion measures designed to increase the life of the St. Johns Landfill. Disposal is one cost incurred by haulers. Insurance, fuel, labor and other costs should also be considered in evaluating collectors' costs- You will need to examine the increase or decrease of each factor on the collection rates in your individual community. February 9, 1987 Page 2 If you have any questions, please call Steve Rapp or Rich McConaghy at 221-1646. If you would like to discuss the impacts of this disposal rate increase on collection fees which you regulate, we would welcome the opportunity to meet with you and the hauler (s) in your area. Sincerely, Tor I haug Acting Director of Solid Waste gl - 6977C/D2 Enclosure SUMMARY OF METRO DISPOSAL RATES Effective April 1, 1987 ST. JOHNS LANDFILL Commercial Public Rates Rate $/2.5 cyd $/extra $/ton trip cyd Base Rate N $9.25 $5.43 $2.17 User Fee $3.20 $1.00 $0.40 Regional Transfer Charge $2.75 $1.88 $0.75 Rehabilitation/Enhancement Fee $0.50 $0.15 -$0.06- State Landfill Siting Fee $1.00 $0.30 $0.12: TOTAL RATE $16.10 $8.75 $3.50 Special Waste Fees at St. Johns 1 25 Special Waste Permit Application Fee $4_.00/ton Special_ Waste Surcharge, plus the $16.70/ton regular commercial rate $50 per trip minimum charge Uncontaminated yard debris rates of $9.25/ton (commOrcial) or $2/cyd (public) are offered at St. Johns y CTRC Commercial Public Rates Rate $/2.5 cyd $/extra $/ton trip cyd --------------------------------------------- Base Rate $9.25 $5.43 $2.17 User Fee 53.20 $1.00 $0.40 Regional Transfer Charge $2.75 $1.88 $0.75 Rehabilitation/Enhancement Fee $0.50 $0.15 $0.06 State Landfill Siting Fee $1.00 $0.30 $0.12 Convenience Charge $3.00 $1.00 $0.40 --------------------------------------------- TOTAL RATE $19.70 $9.75 $3.90 Additional fees may apply for disposal of tires, excess weight at St. Johns, uncovered loads, one ton commercial Minimum, possible special waste lab fees if costs are incurred by Metro. The public minimum rate may be reduced by delivering at least 1/2 a cubic yard of recyclables. SR 1/8/87 OVER ,V*PVV,( r 190Dew-ff&T. May 5, 198 W111 at�i�.aP ItG1u�.dq/' Utilities & Franchise Committee City of Tigard P.O. Box 23397 Tigard, OR 97223 Dear Committee Members : I will be in Florida during your May 6 meeting. However, I would like to add the following for consideration and discussion. The rate review function determining proper garbage rates still needs some work. Further analyzing some of the figures from namely Pride Disposal brings up a critical point as to interest paid for the purchase of stock and/or assets. The criteria in our reporting procedure needs to be further defined. The purchase of assets I feel would be deductible; however, the purchase of capital stock or treasury stock should not be included as expense. The amortization of goodwill and records/ accounts, etc. should not be included as an expense for review purposes . The waste haulers by ordinance are entitled to the pass-through of Metro' s disposal fees. I request our committee chairman reactivate the Rate Review Committee for further refinement of the criterias used in reporting. Yours truly, . McReynolds GWM/mjb 11505-C SOUTHWEST PACIFIC HIGHWAY • POST OFFICE BOX 23877 TIGARD,OREGON 97223 • (503) 245-7551