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05/20/1991 - Minutes r UTILITY & FRANCHISE COMMITTEE MINUTES May 20, 1991 1. The meeting was called to order at 7:00 PM. 2. ROLL CALL: Present: Gerry McReynolds, Chairman Thomas Sullivan Don Jacobs Mark Irwin Mike Meinecke Mike Leichner, Pride Disposal Company Tom Miller, Miller Sanitary Service Larry Schmidt, Schmidt's Sanitary Service Loreen Edin, Staff Liaison 3 . APPROVAL OF MINUTES: 4/22/91 Motion by Committee Member Jacobs, seconded by Committee Member Sullivan to approve as submitted. Approved by unanimous vote of Committee present 4. SOLID WASTE ORDINANCE RECOMMENDATION FOR COUNCIL Committee discussed the definition of "placed out for collection" and determined that while the language was not perfect, it would be best to include in the ordinance noting that revision may be necessary in the future. Committee discussed whether new language in section 11. 04.130A should state a public hearing "may" be held immediately versus changing it to "shall" . Consensus of the Committee was to leave the word "may" in the recommended ordinance. Consensus of Committee was to submit the ordinance as drafted for Council adoption on 6/11/91. The Committee noted concern that Council understand the ordinance will need to be revised again in the near future due to constant industry changes as well as pending state legislative actions. 5. RATE STRUCTURE ADJUSTMENT DISCUSSION AND RECOMMENDATION Chairman McReynolds advised the Committee that the weight assumptions used by the City and recommended by Metro do not appear accurate based on a weight sampling taken by Pride. Type of Service Metro/City Sampling Results Residential 32 gal. can 35 # 25 # Commercial Loose 1 yard 200 # 150 # Commercial Compacted 1 yd. 500 # 400 # Chairman McReynolds noted that the Committee had three options to consider for computing the pass through rate change. The pass through is $13 .00 per ton. U&F Committee Minutes May 20, 1991 Page Two (A) Use the same method the City has historically used since 1987 and compute the pass through on the Metro recommended weights and spread throughout the rate structure. This would result in $1.00 per can increase for residential customers. (B) Use the same method the City has historically used since 1987 except base the assumption on the sampling weight results and spread throughout the rate structure. This would result in a $.70 per can increase for residential customers. (C) Spread the pass through increase to residential customers only in an attempt to relieve the apparent rate structure inequities between service types. This would result in a $1.95 per can increase for residential customers. Chairman McReynolds suggested that a financial and operational audit of the haulers' businesses was needed based on the following concerns discussed by the Committee: weight assumption differences; rate structure inequity; cost allocation inconsistencies; service level definitions; and the need to establish a methodology for rate establishment. Lengthy discussion followed. Recommendation to City Council: the Committee noted while it appeared that historically thecelo" City may be required to pass through the increase based on it (A) above, method (C) would referred by the Committee �• (though Pride Disposal''�upport b m'1thod (A) above) . Method (C) ��Iq was seen to begin the rate structure modification to relieve �t inequity concerns by the Committee between service types. RECESS: 8:50 PM RECONVENE: 9:00 PM 6. COMMITTEE SCOPE DISCUSSION Staff Liaison Edin presented a discussion draft of a revised functions and duties list for the Committee. She suggested the Committee focus on solid waste management exclusively due to the constant changes in the industry. After some discussion, the Committee offered suggested amendments to the list and recommended forwarding to the Council with a recommendation of approval. U&F Committee Minutes May 20, 1991 Page Three 7. OTHER BUSINESS Committee member Mieneke reported that he had a plastics collection program in place at the Phil Lewis School. He reported this was open for the general public during school hours. 8. ADJOURNMENT: 9: 30 PM Minutes prepared by Loreen Edin