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HomeMy WebLinkAboutMinutes 04/13/1998 UTILITY ADVISORY COMMITTEE Port Angeles, Washington April 13, 1998 I. Call to Order: Vice Chairman Campbell called the meeting to order at 3:05 p.m. II. Roll Call: Members Present: Councilmen Campbell, Doyle (3:10 p.m.), and Williams, and Bill Myers. Members Absent: Joe Michalczik. Staff Present: C. Knutson, 1. Pittis, K. Godbey, K. Ridout, B. Titus, C. Hagar, S. McLain, and D. Sawyer. III. Approval of Minutes: Bill Myers moved to approve the minutes of the March 16, 1998, meeting. Councilman Williams seconded the motion, which carried unanimously. IV. Discussion Items: A. Container Conversion B. Landfill Cost of Service Update C. Jefferson County Disposal Request Director of Public Works/Interim City Manager Pittis reviewed the information contained in the packet. Should the Committee recommend moving forward with conversion, Pittis suggested a 6O-day advertising campaign, then perform the conversion over a two-month period [Note: later in the meeting this was corrected to a four-month period]. Pittis went on to describe the steps and time frames to achieve conversion. Pittis stated that salvageable 300-gallon containers can be put aside to replace worn containers at commercial sites and/or sold as surplus and used in yard debris collection. Extra 9O-gallon containers will be purchased as back up. Pittis reviewed the Route and Manpower Analysis and Estimated Costs for Conversion as outlined in the memo. Pittis stated that, if the conversion is approved, bi-weekly pick up could remain at the current rate, and weekly rates would be increased by $3.00 or $4.00. Discussion followed regarding rates, as the Committee was concerned with funding landfill closure costs. Pittis reminded the Committee that the results of a survey indicated 55 % of City residents were interested in bi- weekly pick up. Even if 75% wished to convert, solid waste revenues will be slightly higher than - 1 - Utility Advisory Committee April 13, 1998 if no conversion takes place and garbage rates remain the same. Pittis then asked Scott McLain, Power Manager, to present his update on the landfill cost of service. McLain reviewed the information contained in the packet and explained that there were a few changes to the revenue requirement for landfill closure. At the end of the year 2000, the City will be approximately $1 million short of revenues for landfill closure. McLain explained that in a solid waste utility, most costs are fixed. Taking in waste from Jefferson County would not increase operating costs. Because costs are fixed, it is difficult to determine the actual cost of dumping a ton of garbage without defining a specific scenario. Staff will attempt to come up with a figure for landfill dumping by the City and Jefferson County for the next UAC meeting. The costs would be different because the City is attempting to recover closure and post closure costs for previous landfill use. Jefferson County's waste would not be required to pay these costs, if looked at on a cost of service basis. Currently, the City is over collecting closure costs because closure costs were not collected in the distant past. McLain completed his review of the Functionalization of Costs and explained that 17 % of monies collected for solid waste are going to pay for post closure costs. McLain said there were options to be explored, such as the rate proposal for the 9O-gallon conversion. If 50% of the residents choose weekly pick up at a $4.00 per month higher rate, the City will gain approximately $380,000 over a two and one-half year period. If the City takes in Jefferson County's waste, 15,000 tons at about $24 for two and one half years would yield about $900,000 in revenue. Closure and post closure fees could possibly be collected after the landfill is closed; Attorney Knutson is looking into this. Attorney Knutson explained that collecting fees after closure would be a decision made by the Department of Ecology when the City applies for its next permit. Discussion followed regarding landfill closure and long hauling refuse in the future. Pittis explained that, even if the landfill could stay open indefinitely, the City would probably long haul by the year 2007 rather than open another cell, as it would be less expensive. The competition of long hauling is what caused the City to lower its landfill fees for commercial haulers. The same issue must be faced when discussing Jefferson County. Fees must be based upon the market. Pittis stated he and Finance Director Godbey had spoken to Klara Fabry, Director of Public Works for Jefferson County. Ms. Fabry must have an answer by tomorrow morning if the City is interested in accepting Jefferson County's garbage. Jefferson County must notify Rabanco this week if they wish to extend the contract, rebid it, or modify it; therefore, Port Angeles must give them a response. The latest figure proposed by Jefferson County is $21.17 plus 20% of transportation savings for a total fee of $24.07 per ton. Discussion followed. Pittis suggested that if it is decided to accept Jefferson County's waste, a time frame be established with rates renegotiated after that point. Scott McLain pointed out that, if an agreement was reached which locked Jefferson County into using the City's landfill until the year 2000, the $1 million landfill closure shortfall would be eliminated. Further discussion followed regarding what percentage of - 2 - Utility Advisory Committee April 13, 1998 Jefferson County's transportation savings would be a reasonable sharing. It was the consensus of the Committee that staff suggest to Jefferson County that they extend their contract with Rabanco for six months and continue negotiations with the City on tipping fees with the City receiving more than 20% of the transportation savings. Pittis asked the Committee for direction regarding the container conversion. Following further discussion and clarification, Councilman Campbell suggested a public relations campaign to prepare the residents for this change. Councilman Doyle suggested this be forwarded to the Public Information Committee. Councilman Doyle moved to direct staff to make a presentation to the City Council on container conversion, with the recommendation from the UAC that this go forward. Councilman Wmiam~ seconded the motion. Discussion followed. Councilman Campbell felt the rates needed more explanation, with justification for the option chosen. There are many unknowns. Finance Director Godbey stated the rates could be adjusted in the future when more information is known. Councilman Campbell suggested that the presentation for Council have a solid list of bullets as to why the conversion should be considered and what the costs and benefits would be to the citizens of Port Angeles. Further, he felt there should be a significant difference between weekly and bi-weekly pick up rates, which would make recycling more attractive. A vote was taken on the motion, which carried unanimously. Deputy Director Ridout pointed out an error in the conversion memo. The conversion will take four months to complete rather than two. D. Landfill Yard Waste Rate for City of Sequim Pittis reviewed the information contained in the packet and described how Sequim' s proposed yard waste would be collected. He stressed that, currently, if a Sequim resident brings in yard waste there is no charge. Actually, having it delivered by a large truck, rather than by individuals, would be less expensive for the City as it would not be handled by landfill employees. The yard debris is necessary for chips for composting; encouraging it will be of benefit to the City. Ultimately, when full utilization of composting and sludge at the treatment plant is achieved, the City could be in a situation where it would have to purchase chips. Pittis responded to questions posed by the Committee and provided clarification. Following further brief discussion, Bill Myers moved to accept the City of Sequim's yard waste without payment of a tipping fee. Councilman Williams seconded the motion, which carried unanimously. - 3 - Utility Advisory Committee April 13, 1998 E. Marine Bluff - Funding for Study Dave Sawyer, Senior Planner, reviewed the discussion held at the last meeting on this issue. He stated that FEMA had been contacted, and there is no funding available for a geotechnical study. FEMA said that even though the slides are linked to the declared emergency in 1997, the City had 60 days to make funding requests. Primarily, the funds available are for immediate, imminent danger to property and it would be rare that the money would be allowed to be used for a study. Councilman Doyle expressed concern over setting a precedent if it paid for this study. Sawyer explained that, while the City is not liable for damage caused by a slide from land that is privately owned, it usually is involved in the clean up. Discussion ensued regarding the slide that occurred behind Lamont's, and Attorney Knutson pointed out that the City cleans up slide debris when it results in a street closure and a possible hazard to the power lines. Attorney Knutson felt the Port only asked the City to get involved to act as facilitator. The City may not have the major liability exposure, but as a community service, it may choose to facilitate. He agreed with Councilman Doyle that it may set a precedent if the City pays for the study. Attorney Knutson suggested other cities and counties be contacted to see what stance they are taking on this type of issue. Following lengthy discussion, it was the general consensus of the Committee that staff should contact other cities and report back at a future meeting. V. Information Only Items Councilman Campbell stated the Council had received a letter from a citizen regarding the City accepting credit cards for payment of utility bills. Director Pittis stated Director Godbey was responding to that letter. Councilman Campbell also alluded to a letter received regarding the Hill Street pump station, to which Director Pittis had already responded. Councilman Doyle informed the Committee that there was a letter to the editor regarding the history of the Hill Street house. The house was only 68 years old and had no historical value. Bill Myers asked the status of the old Brickie's Tavern, and Director Pittis related that Sr. Building Inspector Haehnlen was working with the new owner to abate the nuisance. Deputy Director Titus distributed copies of a letter from the PUD, which suggested the City forego hiring a new Engineering Manager and utilize the services of the PUD, and his response to that letter. - 4- Utility Advisory Committee April 13, 1998 VI. Late Items None. VI. Next Meeting: The next meeting will be May 11, 1998, at 3:00 p.m. VIII. Adjournment: The meeting adjourned at 5:15 p.m. - 5 -