MINUTES OF THE METRO COUNCIL

REGIONAL ENVIRONMENTAL MANAGEMENT COMMITTEE MEETING

Wednesday, May 19, 1999

Council Chamber

Chair Washington called the meeting to order at 1:33 PM. Councilor McLain sent a message to the Chair that she was caught in traffic and did not expect to get to the meeting on time.

1.  CONSIDERATION OF THE MINUTES OF MAY 5, 1999

2.  REGIONAL ENVIRONMENTAL MANAGEMENT DIRECTOR’S UPDATE

Terry Petersen, Acting Director of the Regional Environmental Management Department, gave a summary of the department’s recent activities. (The complete summary has been attached to the meeting record.) Items included the following.

• A compost bin distribution planned for June 19th and 20th.
• A hazardous waste collection on June 12 and associated outreach to the Overlook Neighborhood Association.
• A new format for billing haulers that is easier to read (a sample has been attached to the meeting record).
• Efforts to enforce requirement that loads hauled to Metro transfer stations, especially Metro South, be covered.
• A public awareness survey about Metro and REM that is under development.
• A successful hazardous-waste collection event held recently at Washington Square.
• A proposed merger between BFI and Allied Waste Industries, Inc., and how Metro should respond.
• Celebration of the one millionth call on recycling hotline.

Councilor Park asked if the Clackamas County sheriff’s office would issue tickets for uncovered loads.

Mr. Petersen said Metro has a contract with Multnomah County Deputies, who will work the Oregon City Police.

Councilor Park asked if enforcement would be concentrated around the transfer station.

Mr. Petersen said yes.

Councilor Park asked if this was required by the station’s conditional use permit.

Mr. Petersen said Metro had agreed to implement a plan of action this year. He said it was needed, as too many self-haulers have waited until they are at the transfer station to cover their loads, making a mess along the way. The effort should encourage those people to tarp up before they leave home.

Councilor Park asked who gets the funds from those fines.

Marvin Fjordbeck, Legal Counsel, said those become Metro solid waste funds. The fines are not large; they’re limited to $500.

Chair Washington asked that the department step up its public education efforts, to avoid a public relations disaster when tickets begin to be issued.

Mr. Petersen said signs would be posted and flyers distributed. He said Jan O’Dell, Public Affairs Specialist for REM, would be putting a large notice in the Oregonian, the Oregon City News, and the Clackamas Review.

Jan O’Dell, Public Affairs Specialist, said the notice would be half a page and would emphasize litter prevention. She said flyers had been handed out at the scale houses since the beginning of the year and signs have been posted for the past month. She said warnings rather than citations would be issued for the first month.

Councilor Park asked why Metro rather than the local jurisdiction would receive the revenue from fines. He suggested distributing the money back to the local jurisdictions for the sake of public relations, since the amount would not amount to much anyway. He also said he would prefer to have local deputies do the collecting.

Chair Washington requested that staff be prepared to explain this program and its policies clearly to the full Council. He suggested staff address Councilor Park’s concerns about keeping revenue from fines rather or distributing them back to local jurisdictions, for the sake of keeping good relations.

3.  ORDINANCE NO. 99-805, FOR THE PURPOSE OF AMENDING METRO CODE CHAPTER 5.02 TO EXTEND THE SUNSET DATE FOR THE REGIONAL SYSTEM FEE CREDIT PROGRAM TO JUNE 30, 2000, AND DECLARING AN EMERGENCY

Mr. Petersen explained that this has been the program whereby Metro has allowed a credit to facilities on part of Metro’s user fees, based on the facility’s recovery rate. The credit system replaced a system whereby Metro had set a minimum recovery percentage. The problem with setting a required minimum percentage was that facilities had no incentive to recover more than the minimum. The fee-credit program was set up as a one-year pilot program, to test its effectiveness in encouraging greater recovery efforts.

This resolution would extend the sunset date of the pilot program for one more year. So far, the program has spent $618,000 out of a $900,000 budget. Recovery rates at the seven participating facilities have ranged from 21% to 62%, earning credits from $17,000 to $306,000. An assessment of the program’s effectiveness has been underway, and a report would be forthcoming something this summer.

Chair Washington asked where the money comes from to pay the credit. Mr. Petersen said the money to run the pilot program comes from the undesignated fund balance, but the credit is subtracted from the payment due rather than any money paid out.

Councilor Park asked whether the fund would be replenished by the same amount when the $900,000 was all spent.

Mr. Petersen said that the undesignated fund balance was $8.4 million after subtracting the $900,000. The $900,000 would be in addition to the current undesignated fund balance.

Councilor Park asked how the fund is replenished.

Mr. Petersen said the undesignated fund balance is not intentionally replenished.

Dennis Strachota, Strategic Policy Analyst, REM, explained further that the $900,000 would be appropriated out like any other expense --it would not be replenished. The credits would be treated as if they were payments for a service.

Chair Washington opened a public hearing at 2:00 PM. No on came forward to testify, so he closed the public hearing.

Councilor Park will carry the ordinance to a meeting of the full Council.

4.  RESOLUTION NO. 99-2786, FOR THE PURPOSE OF APPROVING CHANGE ORDER NO. 24 TO THE WASTE TRANSPORT SERVICES CONTRACT.

Mr. Petersen explained the resolution, accompanied by a PowerPoint presentation. (This information can be found in the staff report associated with this agenda item in the meeting record. Hard copies of the PowerPoint presentation are attached to the meeting record.) This resolution, if approved by Council, would allow Metro to prepay $6.6 million to Specialty Transportation Services (STS) in return for a 10-year net savings to Metro of about $9 million. An accompanying ordinance, Ordinance 99-798, which addresses related budgetary issues, goes directly to Council for a first reading on May 20 and for action on May 27.

Mr. Petersen said Metro, in conducting negotiations with STS, aimed to reduce transportation costs, address traffic problems at Metro South, and keep future transportation options open. The agreement would accomplish this. In return for Metro’s prepaying $6.6 million in fixed costs, STS would reduce their price per load by $30, eliminate shuttle costs for moving trailers at Metro South between the compactors and the staging area, and reduce the number of trailers they store at Metro South from 60 to 10.

Mr. Petersen said one of the issues that needed to be dealt with was protection against contractor default, since Metro would be paying in advance for services not yet performed. As protection, STS has agreed to provide Metro with a $4.1 million letter of credit, which would decline as Metro’s risk declined to base level of $1.3 million. In addition to the letter of credit, Metro would also be provided with a corporate guarantee from the parent company, Aasche Transportation. Metro could also withhold payment for work the contractor has already done. Overall, the change-order represents a win-win situation that promises to render considerable savings to the rate-payers.

Councilor Park asked for a summary sheet that would clearly explain the benefits of the deal, so he could explain this to his constituents. He then asked how much money Metro would lose under a worst-case scenario--i.e., if the company defaulted immediately.

Mr. Petersen said he would provide a summary sheet of benefits. With regard to an immediate default, he said Metro would have the $4.1 million letter of credit, which would leave a $2.5 million gap. That gap could be partially made up by withholding payments due, which could be as much as $1.5 million. The remaining $1 million could be made up by not building a new staging area at the transfer station.

Councilor Park asked about $600,000 worth of use of the contractor’s equipment for 6 months.

Mr. Petersen said the contract provides for Metro’s use of the contractor’s equipment for 6 months in the event of a default.

Chair Washington opened a public hearing at 2:13 PM.

Judge Laura Pryor, Gillam County, praised STS as a company. She said ten years ago when STS first began trucking waste to Arlington, she and others had worried about the impact of trucks on roadways and about trash littering the route. She said after 10 years and 65 million miles, she had found no problems, either with trash or with traffic.

She said in addition, the contractor had agreed to answer to every jurisdiction along the route, even though the route runs on a federal highway. She said the company policed itself well. She said she had had first-hand experience being on the road with STS trucks, and it proved the company to be responsible and courteous. She said none of the neighboring jurisdictions had ever reported a problem to her.

Chair Washington closed the public hearing at 2:18 PM.

Councilor Washington will carry the resolution to a meeting of the full Council.

5.  COUNCILOR COMMUNICATIONS

There being no further business before the committee, Chair Washington adjourned the meeting at 2:20 PM.

Respectfully submitted,

Pat Emmerson

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF MAY 19, 1999

The following have been included as part of the official public record.

Testimony Cards

Judge Laura Pryor, Gillam County