02/04/1991 - Minutes UTILITY & FRANCHISE COMMITTEE MINUTES
February 4, 1991
1. The meeting was called to order at 6:00 p.m.
2. Roll Call.
Present: Gerry McReynolds, Chairman
Rebeckah Barrett
Thomas Sullivan
Don Jacobs
Mike Leichner, Pride Disposal Company
Tom Miller, Miller Sanitary Service
Larry Schmidt, Schmidt's Sanitary Service
Loreen Edin
Lee Kell, Kell, Alterman, & Runstein, Legal Counsel
for Haulers (arrived 6:50 p.m. )
3 . Minutes of January 21, 1991 meeting.
Motion by committee member Jacobs, seconded by committee member
Sullivan to approve.
Approved by unanimous vote of committee present.
4. Solid Waste Ordinance Work Session
Chairman McReynolds outlined some the following discussion
issues for the committee:
a. The Term of The Franchise and a Franchise Amendment
Process.
Consensus of the committee was that these items that the
term of the franchise should stay as it currently is
stated and that an amendment process was already allowed
for under Section 11.04.020 which notes that all rules
for solid waste must be in compliance with DEQ and Metro
requirements.
Attorney Lee Kell arrived 6:50 p.m.
b. Complaint Handling Process
The consensus of the Committee was that uniform steps for
resolution of complaints should be developed, but that
this could be under an administrative rule via
administrative rule section of the ordinance (11.04.160) .
City staff was requested to develop the rule after the
solid waste ordinance was revised.
• 0
U&F Committee Minutes
February 4, 1991
Page Two
C. Insurance Coverage Update
Consensus of the committee was to direct the haulers'
attorney, Lee Kell, to modify the language in Section
11.04.070 (a) (2) to increase the public liability
insurance to have a combined single limit of $1,000,000.
d. Compactor Ordinance
Consensus of the committee was to include the proposed
compactor ordinance into the solid waste management
ordinance draft. Loreen Edin and Lee Kell are to review
the compactor ordinance after the community Development
Director has had a chance to review.
e. Penalties
After further review and discussion regarding franchise
ordinance revisions, the consensus of the Committee was
to change Section 11.04.180 change the penalties in that
section from an unclassified misdemeanor to a Class A
misdemeanor.
5. Rate Structure Issues
Chairman McReynolds noted in the past that Council has agreed
that an 8-12% profit margin was an acceptable range for the
haulers in aggregate. He noted a need however for equity in
the rate structure noting that residential service delivery was
much more expensive now that recycling had been added.
Chairman McReynolds suggested in the proposed rate structure
for Council consideration that a curbside rate be inserted
which would show a reduction of perhaps a dollar a month over
the flat rate. He also suggested a 20-gallon can rate be
included to encourage recycling.
RECESS 7: 39 p.m.
RECONVENE 7:55 p.m.
Chairman McReynolds noted that the rate disparity issue was a
statewide issue. He further stated that locally Pride Disposal
had 75% of the commercial business and Schmidt only had 5% of
that same business. The current rate structure definitely
impacted their bottom line or net profit. He further noted
that Pride Disposal was well over the 12% limit for
profitability while Schmidt Sanitary operated last fiscal year
under the 8%.
0 •
U&F Committee Minutes
February 4, 1991
Page Three
Lengthy discussion followed regarding the current and proposed
rate structures. One suggestion was to stair step or phase in
the proposed rate change which would allow Schmidt Sanitary to
increase to at least the 8% profitability margin while
softening the blow to the residential rate payer.
Chairman McReynolds noted the responsibility as a Committee was
to insure the franchisees received their "fair share" of the
revenue in the City.
6. Other Business
a. Durham Road Regulation Review
The limit of through trucks on Durham Road was causing
concern to the haulers. Loreen Edin was to set a meeting
with the Chief of Police regarding use of Durham Road.
b. Date of Next Meeting
Consensus of Committee was to cancel the meeting regularly
scheduled for February 18, 1991 and have a rate review work
session scheduled for 6:00 p.m. on March 4, 1991.
7. Adjournment - 9:15 p.m.
Minutes prepared by Loreen Edin.
le/dkt