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HomeMy WebLinkAbout10/06/2014 Work SessionCity of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY OCTOBER 6, 2014 The City of Springfield Council met in a work session in the Jesse Maine Meeting Room, 225 Fifth Street, Springfield, Oregon, on Monday October 6, 2014 at 6:00 p.m., with Mayor Lundberg presiding. ATTENDANCE Present were Mayor Lundberg and Councilors VanGordon (6:15pm), Wylie, Moore, and Woodrow. Also present were City Manager Gino Grimaldi, Assistant City Manager Jeff Towery, City Attorney Mary Bridget Smith, City Recorder Amy Sowa and members of the staff. Councilor Ralston was absent (excused). 1. Sanipac Rate Increase Request Rhonda Rice, Management Analyst, and Bob Duey, Finance Director, presented the staff report on this topic. Sanipac, the City's franchise hauler for solid waste, has requested an increase of 4.3 percent for residential and commercial hauling rates. This request is due in addition to Lane County implementing an increase in the charges imposed for disposal of solid waste at the Short Mountain Landfill (tipping fee) and also due to the increase in Sanipac's cost of doing business. The Board of County Commissioners has determined, as part of the County budget process, that the rate imposed on solid waste haulers for disposal of waste at the Short Mountain landfill should be increased, effective September 1, 2014, from $67 per ton to $75.55 per ton, an $8.55/ton increase. This increase will, according to the Board, fund continued operations at current levels. The user rate collected by Sanipac has two components: an amount designed to allow Sanipac a reasonable rate of return on its costs; and a separate component for the cost of disposal of the waste. Sanipac requests an overall 4.3% increase in residential and commercial rates. This rate increase is based on the Consumer Price Index average for the past 2 years and will allow for the continued established rate of return. The proposed increase will represent an increase of approximately $1.10 per month increase on the 35 gallon weekly, the most common residential size used. Mr. Duey noted that after comparing this rate to other industry standards, it was still within the range. Sanipac last increased its rates in January, 2012. Under the current franchise, Sanipac is permitted to request increases annually, but is also permitted to seek supplemental increases when costs increase as a result of governmental action. The franchise expressly allows for the pass through of rates for disposal. Sanipac has requested that the increase be effective November 1, 2014. If Council directs, this item will be placed on the October 20 agenda for formal action. Staff believes that the request by Sanipac is reasonable and appropriate, and recommends approval. Ms. Rice referred to the new fee schedule. This schedule includes the customer count for each service and comparables from other surrounding cities. She explained the figures on the schedule for both residential and commercial. In looking at the comparables with other cities of similar size, and also Eugene, Springfield would remain below average on residential and above average on commercial with the proposed increase. City of Springfield Council Work Session Minutes October 6, 2014 Page 2 Councilor Moore asked about a figure in the per month chart. It was explained that it was for a second can. She said she appreciates that they added the smaller can and feels it is very helpful. She also appreciates that they added recycling for everyone. Mayor Lundberg asked if they had plans for a smaller recycle bin to match the small garbage for those living alone or with a small household. Mr. Johnson said they could look into something like that. Mayor Lundberg asked if they tracked how often rates were increased. Ms. Rice said they had an increase in 2009 for a tipping fee adjustment, then another increase in 2012. Mayor Lundberg said she hadn't heard complaints about the fees. Councilor Woodrow said she was fine with how things were planned out. It was done not only to take care of business, but also with the customer in mind. Councilor Wylie said she was concerned with those living on a fixed income. Not everyone got a cost of living increase; however, she understood the increase. Ms. Rice said they would bring this back on October 20. 2. Other Items Discussion was held regarding the break between work sessions and regular meetings. Fifteen minutes was a good break. Mayor Lundberg said she and Mr. Grimaldi had decided to adjust work session items to allow that extra time for thorough discussion and wrap-up before going into the regular meeting. ADJOURNMENT The meeting was adjourned at 6:19 p.m. Minutes Recorder — Amy Sowa Christine L. Lundberg Mayor Attest: Amy SowdJ City Recorder