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CC Minutes - 06/11/01 Work Session
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CC Minutes - 06/11/01 Work Session
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City Council Minutes
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Work Session
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1/1/2001
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consultant, was also present. Ms. Young provided the staff presentation, describing the current system of <br />solid waste collection, which she characterized as providing customer choice, competition, opportunity for <br />growth, and requiring a minimal government involvement in enforcement. Downsides to the system were the <br />difficulties haulers had enforcing recycling standards without fear of losing customers; overlapping routes, <br />which wasted fuel, contributed to road degradation, and produced more noise and congestion; higher rates due <br />to noncontiguous accounts; containers out on the same street on different days for as many as four different <br />haulers; and difficulty in achieving regional strategies because of disparity among local collection systems. <br /> <br />Ms. Young noted the impact residential rates experineced in the last ten years, which was created by the <br />separation of residential and commercial expenses for haulers, during which time residential rates increased <br />and there had been no commercial increase at all; by the institution of recycling rebates that artificially inflated <br />the rates; and by the City's decision in 1994 to implement progressive rates, which resulted in a situation <br />where the fixed costs had remained the same but there were fewer customers in larger containers to pay those <br />costs, spreading costs throughout the system onto customers with smaller, less expensive containers. In <br />addition, noncontiguous collection routes also added to the cost. A change to territories would result in a more <br />efficient collection system. <br /> <br />Ms. Young reported that surveys indicated a high level of customer satisfaction with the current system, noting <br />that the response was similar to responses in other communities with different systems, which she believed <br />reflected satisfaction with the service rather than the collection system. She reported that 46 percent of survey <br />respondents indicated no need for a change in the system; the remainder indicated acceptance of change under <br />certain conditions. <br /> <br />Ms. Young reported that focus groups of residential and commercial customers were held; the residential focus <br />groups indicated a preference for choice, and the commercial groups preferred exclusive residential and <br />commercial franchises. Commercial customers favored blended rates; residential customers were split on the <br />issue. <br /> <br />Ms. Young said that a survey of 20 Oregon cities with 20,000 or more people indicated that Eugene was the <br />only city without an exclusive franchise system for residential customers. Eugene had the fifth highest <br />residential rates and fourth lowest commercial rates; Springfield had the lowest residential rates and seventh <br />lowest commercial rates. Only Eugene and Portland do not subsidize residential rates with commercial <br />revenue. <br /> <br />Ms. Young noted support for the status quo from haulers. She said if a franchise system was adopted by the <br />City, the haulers were concerned that territories be selected in a fair manner that maintained existing revenues <br />and provided an opportunity for growth. All haulers supported blending the commercial and residential rates. <br /> <br />Ms. Young reviewed options developed by staff for proceeding: 1) institute an exclusive franchise system; <br />and 2) retain the status quo with modifications to the administrative rules. Ms. Young highlighted the staff <br />recommendation for blended rates. She invited questions. <br /> <br />Mr. Meisner asked if the City ever contemplated allowing new haulers to enter the competition for licensing. <br />Ms. Young said there were provisions in the City Code that allowed a new hauler to apply for and be granted a <br />license. That hauler would have to demonstrate it could provide a service not now offered. Mr. Meisner asked <br />if a new residential hauler could offer a service so unique they could secure a license. Ms. Young said it could <br />be possible. <br /> <br /> MINUTES--Eugene City Council June 11, 2001 Page 3 <br /> Work Session <br /> <br /> <br />
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