03/04/1991 - Minutes • •
UTILITY & FRANCHISE COMMITTEE MINUTES
March 4, 1991
1. The meeting was called to order at 6:00 p.m.
2. Roll Call:
Present: Gerry McReynolds, Chairman
Thomas Sullivan
Don Jacobs
Eldon Wogen
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
Michael Mieneke (future Committee member)
Cece Dispenza (future Committee member)
3 . Committee Member Resignation
Chairman McReynolds advised the Committee that Rebeckah
Barrett resigned effective February 20, 1991.
4. Annual Rate Discussion Workshop
Wayne Lowry, Finance Director, reviewed the rate setting
procedure. He noted that the City Council's policy requires
the haulers to submit a financial annual report each March 1.
The review of that report is conducted by the Finance Director
and is then submitted to the Utility & Franchise Committee and
the City Administrator for their adjustment recommendations.
The City Council's policy sets out an aggregate rate of 8% -
12% net profit percentage as being reasonable. Assuming the
aggregate percentages are between 8% and 12%, no rate
adjustment is necessary. Should the aggregate net percentage
be under 8%, Council's direction is to adjust the rate
structure up to allow for a 10% profit margin. If over the
12%, the Committee is to reduce the rates to allow for a 10%
profit margin.
At 6:15 p.m. the haulers and their legal counsel chose to leave
the room so that the Committee could review the details of each
hauler's annual report.
The Finance Director reviewed the aggregate report and noted
that the total aggregate profit percentage for 1990 was 9.78%.
Therefore, no rate adjustment was necessary based on the rate
setting process developed by Council.
• •
U&F Committee Minutes
March 4, 1991
Page Two
The Committee spent considerable time reviewing each hauler's
annual report and interviewing each hauler individually
regarding the methodology and calculations used to develop the
report. During this process, Committee member Wogen suggested
that a method to compare the efficiencies of businesses was
needed in the future.
Discussion followed between Committee members and the Finance
Director about the need for an annual audit of the hauler's
books and what that audit might entail. Further information
will be presented at the next meeting regarding possible audit
criteria.
The haulers and their legal counsel rejoined the meeting and
discussed some of the trends they had seen in the hauling
service over the last year.
The rate structure modification discussion was rescheduled for
the March 18, 1991 meeting at which time the Finance Director
will have more comparative information on the rate structure as
it was applied to the 1990 business year. The Finance Director
did note that during his first review, it seemed that the
proposed rate structure was not rate-neutral in its effect on
the hauler's profit percentage.
5. Solid Waste Ordinance Update
Loreen Edin and Lee Kell reviewed the draft ordinance noting
areas that had been modified since the Committee's last review.
The revisions reviewed were as follows:
11.04 .030 Insertion of the definition of curbside
pickup.
11.04.070 (2) Updating of the insurance limits language
to require a combined single limit of
$1,000,000.
11.04 .040 (d) (6) Until the Washington County decision is made
regarding the possible franchising of
construction site cleanup contractors, the
proposed language by haulers will be left in
the draft.
11.04.180 The penalty section has been modified to add new
sections of the ordinance and classify all
violations as Class A misdemeanors.
U&F Committee Minutes
March 4, 1991
Page Three
Throughout the ordinance typographical errors were corrected.
Loreen Edin recommended that the Committee review the updated
draft and submit any questions or concerns to her by 3/13/91
for the next meeting packet.
The Compactor Ordinance (11.04.105) was reviewed. A lengthy
discussion followed regarding the deletion of an annual renewal
of permit.
The consensus of the Committee was that the annual permit
process should be reinstated in the proposed ordinance
language.
6. Other Business
a. Loreen Edin noted the joint Utility & Franchise and
Council meeting was scheduled for 6:00 p.m. on 3/26/91.
Consensus of the Committee was to hold their next meeting
on Monday, March 18, 1991 at 7:00 p.m. to consider the
following issues:
• Rate structure modification discussion;
• Ordinance language review and approval;
• 1990 Annual Report review and rate proposal
recommendation; and
• Development of information for the joint work
session with Council.
b. Discussion followed regarding a possible tour of
hauler's business sites. Consensus of Committee was
to discuss this issue again at the April meeting.
C. Metro Grant: The Committee discussed whether or not
to apply for 1990/91 Metro solid waste matching
grants to establish an annual clean up program. Liz
noted that Tigard's allocation based on percentage
of population would be $1,565. The Committee
suggested that the staff and Committee review
possible matching grants from Metro next fiscal year
and develop a program to apply for said grant monies
after July 1.
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U&F Committee Minutes
March 4, 1991
Page Four
d. Chairman McReynolds shared a copy of an information
bulletin he received from Tigard Cleaners regarding
their process to recycle the drycleaning solvents.
7. ADJOURNMENT: 9:00 P.M.
Prepared by Loreen Edin
le/dkt