MEETING:  RATE REVIEW COMMITTEE

DATE:  April 5, 2005

DAY:  Tuesday

TIME:  6:00 – 8:00 p.m.

PLACE:  Metro Regional Center, Room 370A

AGENDA

1.  Call to Order (10 min)  Rod Park

Consideration of minutes for the March 22 meeting, and distribution of draft minutes for the March 29 meeting.

Checking in with the Committee’s workplan and schedule*.

2.  Information Requested by Committee Members (45 min.)  Staff

Information for design of the “3^rd fee”  Tom Chaimov

Allocation options  Doug Anderson

3.  Moving Toward a Rate Recommendation (60 min)  Rod Park

Discussion of the phased cost-of-service model (status quo), full cost-of-service model, and other options, if any. Comparison of models and their performance on rate criteria and other policies. Identification of unresolved issues and further work needed.

Attached to this agenda is a worksheet, Notes for the FY 2005-06 Rate Recommendation*. This framework is offered to assist with organizing the issues needed for the rate ordinance, and those that should be subject to further study. Committee members may want to prepare for this discussion by jotting down your comments, pros, and cons for each option.

4.  Wrap Up (5 min)  Rod Park

Confirm the time and agenda for the next meeting.

* Starred materials are attached or enclosed with this agenda.

Please contact Tom Chaimov at Metro with any questions at chaimovt@metro.dst.or.us or 503-797-1681.

DA:gbc

T:\Remfma\committees\RRC\FY 05-06\Mtg5\RRC 040505 aga.doc

Queue

Notes for the FY 2005-06 Rate Recommendation

T:\Remfma\committees\RRC\FY 05-06\Mtg5\agenda 040505.doc

FY 2005-06 Rate Review Committee

Draft Work Plan

March—April 2005

Meeting 1.  New Member Orientation  March 8

•  Charge and composition of the committee

•  Introduction to the solid waste disposal system

•  Metro’s solid waste budget and rates; overview of rate-making

Outcome:   Members share an understanding of the basics.

Meeting 2.  Policy Background  March 15

Comment. In formulating its recommendation to Metro Council in the past, the RRC has not typically analyzed the effect of Metro’s rate changes on other parts of the solid waste system. This year, Councilor Park wants the committee to consider the effect of Metro disposal rates on: (1) collection rates, (2) private facilities (landfill rates and the economics of material recovery & wet waste transfer), and (3) Metro (public customers, fiscal impact of decisions involving tonnage shifts).

•  History of Metro’s rates and rate drivers (costs, tonnage, allocation models), showing relationships with other internal and external changes in the system

•  Introduction to the effects of Metro rates on the regional solid waste system, including the impact on collection costs and the economics of privately-owned facilities

Outcome:  Develop/confirm a policy foundation for the discussion of FY 2005-06 rates.

Meetings 3 & 4. Review of Status Quo, Proposed Budget, and Rates  March 22

   March 29

•  Conclude policy discussion from March 15

•  Review of RRC’s Spring 2004 recommendation

 Status report on implementation

 Remaining issues, including:

•  Phasing

•  “3^rd Fee” (reflecting regulatory costs) and the “make whole” allocation

•  Allocations between the transaction fee & the disposal charge

•  FY 2005-06 proposed budget (provisional discussion)

 Program costs (direct & indirect) and revenue requirements

 Preliminary allocation of net costs to rates

 Identification of issues, including “remaining issues” above and:

•  Recovery of debt service costs, FY 2005-06 to 2009; and

•  Identification of Committee’s technical, informational and modeling needs.

Outcome:   Members share an understanding of rate basics (status quo, proposed budget, allocation options), and the rates that result.

Meeting 5.  Analysis  April 5

•  Review of FY 2005-06 allocations and rates

 Technical review

 Policy analysis

•  Formulate the committee’s preliminary recommendation (Part I)

•  Distribution of draft Rate Ordinance and draft Staff Report (form & format only)

Outcome:  Preliminary recommendation, with draft findings, on FY 2005-06 rates.

Meeting 6.  Recommendation  April 12

•  Finalize the Committee’s recommendation (Part II)

•  Comments and edits of the draft Rate Ordinance and draft Staff Report (content)

Outcome:  Final recommendation, with ordinance and staff report, on FY 2005-06 rates.

Key Dates

The schedule above is based on finalizing the rates at the same time as the budget is adopted:

April 13:  File rate ordinance and staff report

April 21:  First reading of rate ordinance (substantive amendments allowed)

May 5:  Second reading and adoption of rate ordinance, and
Approval of resolution sending FY 2005-06 budget to TSCC

Alternative Track. The Council is scheduled to approve its budget May 5¹, but technically the rates need not be finalized until June 2, which is the drop-dead date for adoption of rates in time to meet the September 1 implementation target. This track provides another month for discussions:

April 19—May 10: Committee continues to meet as necessary

May 11:  File rate ordinance and staff report

May 19:  First reading of rate ordinance (substantive amendments allowed)

June 2:  Second reading and adoption of rate ordinance

Note:  Under both schedules, the FY 2005-06 rates are adopted in time for the TSCC public hearings on June 8. The rates are technically not required for TSCC, but TSCC usually requests the information.

t:\remfma\committees\rrc\fy 05-06\mtg3\work plan.doc