03/15/1993 - Minutes •
SOLID WASTE ADVISORY COMMITTEE MINUTES
March 15, 1993
1. The meeting was called to order at 7:03 PM.
2. ROLL CALL: Present: Gerry McReynolds, Acting Chair
Don Jacobs Tom qullivan (arrived at 7:10 PM)
Mark Irwin Cece :Dispenza
Mike Leichner, Pride Disposal
Larry Schmidt,. Schmidt's Sanitary Service
Bill Martin, Wash. County Haulers' Assn. Dir.
Loreen Edin, Staff Liaison
3. CALL TO AUDIENCE FOR NON-AGENDA ITEMS - No one appeared before the
Committee to speak.
4. APPROVE MINUTES: 1/23 & 2/17/93 - Motion by Committee Member Jacobs,
seconded by Committee Member Dispenza to approve. Approved by unanimous
vote of Committee present.
5. REVIEW OF 1992 ANNUAL REPORTS FROM HAULERS - Loreen Edin synopsized the
results of staff's financial review of toe haulers reports for 1992 noting
that the rate of return on gross revenues were 11.65% She advised the
Committee that for the first time the City required the implementation of
limits on the amount of related party compensation which would be
reported. The limits applied in 1992 resulted in the disallowance of
nearly $92,000 in compensation expense. If this limit had not been
applied, the overall rate of return would have been 9.86% or 1.79% lower,
but still within the allowable rate spread. Currently, Council's rate
spread policy is 8% to 12% in the aggregate. Staff's recommendation was
that no rate increase be recommended.
COMMITTEE MEMBER SULLIVAN ARRIVED: 7:10 PM
r Larry Schmidt questioned whether the Commercial subsidy of the Residential
service line would continue. Loreen Edin stated that this is still the
Council policy direction. Gerry McReynolds stated that the Council should
continue to revisit this issue and eventually correct the rate disparity.
Loreen suggested that when the City changes the rate structure to a
weight-based system it would be a logical time to review the subsidy
policy issue.
6. EXECUTIVE SESSION - The Solid Waste Advisory Committee went into Executive
Session from 7:20 PM to 7:45 PM under the provisions of ORS 192.660 (1)
(f) to consider records that are exempt from public inspection.
7. RATE ADJUSTMENT RECOMMENDATION TO COUNCIL - Acting Chair McReynolds stated
that under the current Council policy there would be no rate change
recommended for the haulers, however, he did wish to point out to the
Council again the disparity between comm rcial and residential rates. He
suggested placing the Metro pass through! TIP fee on residential customers
only to help reduce the subsidy.
Motion by Committee Member Dispenza, seconded by Committee Member Jacobs
to recommend no rate change for haulers based on the 1992 annual report
and to place any Metro pass through TIP fee in the residential service
rates only. Approved by a 3-1 majority vote of Committee present.
Committee Member Sullivan abstaining.
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SWAC MINUTES
MARCH 15, 1993
8. STATUS OF AUTOMATION PILOT PROGRAM - FUTURE OF MECHANICAL ASSISTED GARBAGE
COLLECTION - Mike Leichner reported that he had been running the pilot
program now since last spring. He had found that collection was 30% to
40% faster when mechanically assisted and the drivers do not experience as
many workers comp claims since they were not handling the cans. The only
real complaint he heard was some people felt the 60 gallon cart was too
large to store in their garages. After the first couple of weeks on the
program, customers were very happy with the cart service and did not
oppose taking it to the curb.
Lengthy discussion followed asking more specific questions about the
service.
Loreen Edin noted that since it had been difficult for the haulers to
present financial analysis to the City in time to adequately review for
the 1993 rate hearing process, that City staff recommended the City honor
the haulers' suggestion to allow mechanically assisted service to be
provided upon the citizen's request no later than July 1, 1993. This
would allow haulers who are ready to implement the authority to do so now
without further delay. Those haulers who needed more time to implement
could proceed by responding to customer requests only.
Loreen noted that since this didn't constitute a new or altered service,
only a change in the method by which service was provided that there would
be no rate increase since retrofitting equipment and cart costs would not
require any of the three haulers to spend more than their company's
financial statements would allow. After review the 1992 financial
reports, staff believed the carts and minor retrofit costs could be
accomplished in 1993 for all companies and not require a rate increase.
9. OTHER BUSINESS: Consensus of Committee was to hold the next meeting on
Monday, 4/19/93 at 7:00 PM.
10. ADJOURNMENT: Consensus of Committee to adjourn at 8:03 PM.
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