MINUTES OF THE METRO COUNCIL

SOLID WASTE & RECYCLING COMMITTEE MEETING

Wednesday, June 6, 2001

Council Chamber

Members Present:  Bill Atherton (Chair), Susan McLain (Vice Chair), Rod Monroe

Also present:    

Absent:    

Chair Atherton called the meeting to order at 3:35 p.m.

1.  CONSIDERATION OF THE MINUTES OF THE MAY 23, 2001 SOLID WASTE & RECYCLING COMMITTEE MEETING

2.  REGIONAL ENVIRONMENTAL MANAGEMENT DIRECTOR’S BRIEFING

Terry Peterson, Director, Regional Environmental Management Department, reported that Metro submitted a “financial assistance” request to the City of Portland Bureau of Environmental Services to do a stormwater reduction project for the building. REM staff also requested a refund from the City because they have been billing Metro for more acres of stormwater runoff than actually exists. He updated the committee regarding the City of Portland’s RFP for an organic waste processor and talked about registration and publicity for the kicks off of the Natural Garden tours, and talked about the federal judge’s findings and conclusions on the A.G.G. Enterprises lawsuit. He discussed the construction improvements at Metro Central and Metro South transfer stations with the committee. (For more detail, see the copy of the Regional Environmental Management Director’s Updates attached to the permanent record of this meeting).

Paul Ehinger, REM Engineering and Analysis, reported additional details on construction problems with a concrete wall. (See hard copy of his presentation notes included with the permanent record of this meeting.) He noted that Bruce Warner had suggested formal value engineering on major projects during the design phase to have a better chance at getting the design to match the budget. (See copy of a memo from Mr. Warner included with the permanent record of this meeting.) He said the discipline that value engineering took helped to bring at least one project in under budget. He explained their process for projects and making sure Metro’s interests were well protected.

4.  STRATEGIC PLAN DISCUSSION (ISSUES RELATED TO OWNERSHIP OF SOLID WASTE DISPOSAL FACILITIES)

Mr. Petersen reminded the committee that their last conversation covered research and analysis on whether or not revenue bonds were constraints on whether or not to sell the transfer stations. The conclusions were that defeasing the bonds and selling the transfer stations was possible and that it was unlikely that Metro would receive any economic benefit from defeasance other than those provided by elimination of operating requirements. He added that there was nothing in the disposal contract to prohibit selling the transfer stations, but selling them did not terminate the contract with Waste Management. (See a copy of the briefing sheet, Transfer Station Bonds, included with the permanent record of this meeting). After committee discussion regarding owning or selling the transfer stations, Mr. Petersen concluded that the current system was working pretty well.

Councilor McLain believed there would be no financial advantage to selling the transfer stations. She felt the most important element was the services provided. She felt the public/private partnership helped both do a better job. She added that DEQ had given Metro the responsibility for safety issues. She concurred with the staff reports from past years and the director’s report that the transfer stations should not be sold.

Chair Atherton said throughout the discussions he had been party to was the question of whether owning the transfer stations created a conflict of interest for Metro that reduced the incentive to innovate and reduce waste. He asked if private ownership of the transfer stations would jeopardize Metro’s recycling effort.

Mr. Petersen believed Metro was a fair regulator and applied their regulations fairly across the board. He felt it was legitimate to protect the public interest but disagreed with the basic premise that there was a fundamental problem with being both a regulator and a service provider as they did now.

Councilor McLain did not see it as a conflict, but as protecting the interests of the public and being savvy in what the industry was expected to do, whether public or private.

Councilor Monroe said he had thought it through carefully as well, and had let the chair know he had not seen a compelling reason to change the current direction. He said the goal was service to the public and incentives to recycle. He felt the private/public partnership was the most successful way to do that.

Chair Atherton appreciated the thoughtful analysis and consideration of the question. He added he had gained a greater appreciation that transfer stations are key.

3.  REVIEW OF DRAFT STRATEGIC PLAN GOALS AND OBJECTIVES

Janet Matthews, REM Program and Policy Manager, presented highlights of the draft strategic plan. She reminded the committee of the purpose of doing the plan and talked about the direction being contemplated and reported that the vision, mission, and primary goals of the plan were basic elements of the plan. She reported on the progress of the plan. (See copy of Talking Points for Wednesday SWAR Meeting included with the permanent record of this meeting). She added that a second draft of the plan would be provided to the committee in the next week.

Chair Atherton asked if some kind of deposit or disposal fee had been considered at the point of sale for hazardous waste materials, similar to the bottle deposit.

Mr. Petersen said that was exactly the kind of feedback they were looking for. He said he would be very interested in looking at that idea in more detail.

In response to a question from Councilor McLain regarding the draft timeline, Ms. Matthews responded that they would receive the next draft in the coming week. She said she had upcoming appointments with Councilors to review the draft. They were shooting for a resolution by late July so SWAC would have to discuss it on June 18^th.

Mr. Petersen asked for committee input before the SWAC mailing.

Chair Atherton announced a Rate Review Committee meeting on June 27^th, 2001, and said that the next committee meeting in 2 weeks would focus on the strategic plan.

ADJOURN

There being no further business to come before the committee, Chair Atherton adjourned the meeting at 5:01 p.m.

Respectfully submitted,

Cheryl Grant

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE

SOLID WASTE & RECYCLING COMMITTEE

MEETING OF JUNE 6, 2001

Testimony Cards: None.