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1986-17676-Minutes for Meeting June 18,1986 Recorded 9/9/1986I FAE 63 86-17676 3 CAI- Chair � ►� DESCHUTES COUNTY BOARD OF COMMISSIONERS r �F JUNE 18, 1986 PUBLIC HEARING ON SOLID WASTE FRANG��ISE Chair Prante called the meeting to order ati;:�V :30 p.m. Commissioners Tuttle and Maudlin were present. Rick Isham, Legal Counsel, was also present. Chair Prante called for the staff report. Karen Green brought the commissioners attention to a map that outlined the areas in question. Ms. Green stated that applications by Brownrigg and the Inn of the 7th Mtn. were both competing for part of the same area. Brownrigg is applying to renew their application for its existing area and the Inn of the 7th Mtn. is applying for a franchise for an area in the center. Mike Miller and the Solid Waste Advisory Committee came to the conclusion that the Inn of the 7th Mtn. did not meet the requirements for a franchise. Karen Green stated that her conclusion was that there were serious questions about whether the Inn did meet the requirements of Ordinance No. 85-037. Section 9.03 of the Ordinance, which is a carry-over from Ordinance No. CG4, gives a preference to existing service providers when an applicant comes in for a franchise. In this case, both applicants are claiming this preference since both are existing providers. Both applicants have been hauling solid waste in the area for which the Inn is applying for a franchise. Ms. Green stated that a preference needs to be given to one or the other of the applicants, or that section of the ordinance needs to be thrown out. A preference can't be given to both parties for the same area. Karen Green stated that her conclusion is that the preference section needs to be applied and that it should be given to Brownrigg, since they were the existing franchisee and that the only reason that Brownrigg was not providing service to all the customers in the area was because of the Inn's interpretation of the action of the Board in 1981, to the effect that companies and persons who owned or controlled property could self -haul solid waste on property they owned or controlled. The Solid Waste Advisory Committee recommends that the franchise be granted to Brownrigg. Chair Prante asked for a presentation by Brownrigg Investments, Inc. Mike Mills, 715 Commercial St. NE, Salem, OR 97301, stated that he is an attorney representing Brownrigg's application. Mr. Mills stated that in 1981 he argued on behalf of Brownrigg against the change in the Ordinance CG4. He stated that at that time, the issue was whether persons could haul their own garbage or not. Mr. Mills stated that he argued against the Inn hauling their own garbage plus other people's garbage and be compensated for hauling. Mr. Mills stated that such action should not be allowed under the franchise. Mr. Mills stated that the Board's position was that as long as persons owned or had control of property, they could haul their own garbage without a franchise. MINUTES OF PUBLIC HEARING ON SOLID WASTE FRANCHISE 6/18/86 PAGE 1 VOL 75 PAGE 64 The franchisee, disagreeing with the board's decision, filed a lawsuit. Mike Mills stated that he continued his efforts in reversing this decision. He further stated that in 1981, the Solid Waste Advisory Board advised the Board of Commissioners not to adopt this interpretation. Mr. Mills stated that he has submitted a declaration of public interest which sets forth why he believes that the public interest would be best served by granting the franchise to Brownrigg and not 7th Mtn. He stated that after numerous meetings with all concerned, Ordinance CG4 was replaced with Ordinance No. 85-037. He stated that this new ordinance specifically reversed the position that was taken by the prior commissioners. Mr. Mills stated that he agrees with the legal position taken by the county's legal staff. He stated that he wishes to speak to some issues that have been raised by 7th Mtn. He stated that he does not believe that this is an issue of who can or who did serve this area better. He stated that Brownrigg has served the area of the Inn for 20 years and that during that time there has not been a documented incident on any complaints about the quality of service. He stated that the problem was that the Inn felt that because their needs were unique, it would cost too much to have the franchisee pick up the trash. Mr. Mills stated that during the course of the lawsuit, he had to the opportunity to take depositions from Mr. Klug of the Inn. He stated that he asked Mr. Klug specific questions about the level of service that the Brownrigg's provided, and that he had no complaints or problems. Another issue raised was that the area around the garbage cans would be kept cleaner if the Inn were allowed to haul garbage. Mr. Mills stated that he believes that this is a false issue. He further stated that during that taking of a depostion from Mr. Klug, he said that his own personnel keep these areas clean as a matter of course. Mr. Mills stated that during this time, the areas around the garbage cans were not being kept up as they should have been, and that Brownrigg haulers had been picking up these areas themselves and charging the Inn for it. The Inn wrote letters protesting this extra charge. Mr. Mills stated that it is not the responsibility of the franchisee to keep these areas clean. He further stated that this is not a haul -your -own issue any longer. 7th Mtn. may still haul their own garbage from its own premises. Mr. Mills further believes that money invested in equipment is not an issue. He contends that 7th Mtn. had equipment to haul their own garbage before any franchise issue came up and that they will not be losing any money by being denied a franchise. On the other hand, Brownrigg has invested money in new equipment on the basis that their business would be expanding. Mr. Mills read a statement of public interest given by the Inn of the 7th Mtn. and gave his rebuttal to it. The statement by the Inn states that the welfare of the people of the county is the primary concern. It further says that the safe accumulation of MINUTES OF PUBLIC HEARING ON SOLID WASTE FRANCHISE 6/18/86 PAGE 2 PAGE 65) solid waste is one issue to be considered. Mr. Mills submitted that there is no evidence that Brownriggs cannot provide manpower, equipment, and services that would accommodate these varying amounts and fluctuations and seasonal demands that the 7th Mtn. says they have. Mr. Mills stated that Brownrigg has proven with other customers that they are capable of handling any seasonal variations. The statement from 7th Mtn. further states that they are in a better position to do recycling, would have better employees, and would do a better job than the franchisee. Mr. Mills contended that this is not the case since the 7th Mtn. has never had any complaints about the service. 7th Mtn. also believes that they can serve the public better, but 90 percent of the public served by 7th Mtn. are not residents of Deschutes County. 7th. Mtn. also states that its costs would increase if the Inn were not allowed to haul and that these costs would have to be passed on to the public. Mr. Mills contended that the Inn has always indirectly charged for their garbage hauling expenses. He further stated that Brownrigg has written letters to the Inn expressing interest in purchasing some of their equipment if they are granted a franchise thus helping to reduce costs to the Inn. Mr. Mills stated that tourists, not residents are the source of most of the solid waste at the Inn of the 7th Mtn. Mr. Mills also stated that money paid for hauling fees would be circulated in the county if Brownrigg is allowed to haul. Mr. Mills stated his conclusions. The Inn does not have a majority of service customers to qualify for a franchise. He stated that the Inn's motives are economic. Commissioner Tuttle asked Mr. Mills what the Inn would be allowed to haul on their own. Mr. Mills stated that he is not aware of all that is owned by Klug/Rainey, Inc. He stated he knows that they operate a restaurant at the Inn and believes they own the stables and a small store. These are the operations from which they would be allowed to haul solid waste. Chair Prante asked for comments from those speaking in favor of the Brownrigg application. Sharon Green, #8 Playoff Lane, Sunriver, stated that she has been a customer of Brownrigg and believes that they have very courteous staff and has had no problem with special requests made. She stated she believes that the income generated from solid waste collection should be spread throughout the county. John McCafferty, manager of DAW, stated that he supports Brownrigg's application from a cost standpoint. He stated that Brownrigg has been hauling for DAW for 10 years and in all that time the only cost increase has been in the county dump fees. He stated he believes that Brownrigg will not be able to continue to hold down their prices if their base is not broadened. He stated MINUTES OF PUBLIC HEARING ON SOLID WASTE FRANCHISE 6/18/86 PAGE 3 VEL 75 PAGE 6 he further believes that Brownrigg has been able to keep up very well with changing needs in the county, and he would not like to see that interfered with. Commissioner Maudlin asked Mr. McCafferty if the waste he had to haul has increased. Mr. McCafferty stated that it has increased by approximately 100 percent, but that his rates have not increased and the level of service remains high. Patrick Green, WS Playoff Lane, Sunriver, reiterated previous comments and stated that he is concerned about the economic impact of this issue. He believes that Brownrigg does a good job. Chair Prante asked for any further comments in favor of Brownrigg. Hearing none, she asked for comments from those wishing to speak in opposition to the Brownrigg application. Neil Bryant, 40 NW Greenwood, Bend, attorney for the Inn of the 7th Mtn., stated that he believes that Brownrigg will not go out of business if not granted this franchise. He further states that rates would not be reduced by the granting of the franchise. He stated he further believes that the Inn does have a majority of customers. Mr. Bryant stated that he disputes Mr. Mills' contention that the tourists are somehow getting away without paying for garbage collection. He stated that the condominium owners at the Inn who want Klug/Rainey to continue garbage collection are taxpayers and some are residents of this county. Mr. Bryant stated he believes that the statement made by Mr. Mills that the new ordinance reverses the old ordinance is wrong. He stated that he believes Klug/Rainey does meet the requirements of the franchise and that all conditions of the ordinance have been met. He stated he further believes that the decision of the Solid Waste Advisory Board was based on what granting this small franchise would do to the entire franchise system. He stated he believes that the effect on Brownrigg would be small because the Inn would continue to self -haul. He stated he further believes that the effect on the county would be the same. Commissioner Tuttle asked Mr. Bryant if any expansion of the Inn would be considered as part of the franchise area. Mr. Bryant stated that further development would be included. Chair Prante asked if the Inn has been charging the Powder House for collection. Mr. Bryant stated that they have not. He further argued that since approximately 50 percent of the people in the county self -haul that this can be the area to concentrate on to increase the base. Jim Angell, chairman of the board of the Association of Unit Owners at the Inn of the 7th Mtn. and secretary/treasurer of the Associated Owners of 7th Mtn. stated that he was confused as to MINUTES OF PUBLIC HEARING ON SOLID WASTE FRANCHISE 6/18/86 PAGE 4 i VOL '75 ?AGF_ 67 why the Inn would not be allowed to haul their own garbage under the ordinance. Karen Green answered by explaining that self - hauling is based on ownership of property and not by management of property. Mr. Angell stated that his association has been happy with the job that the Inn has been doing. Commissioner Maudlin asked Mr. Angell if they paid for garbage collection. Mr. Angell stated that they pay for an exterior maintenance agreement for their services, but that garbage collection is not itemized. Warren Klug, general manager of the Inn of the 7th Mtn. and president and major stockholder of the management company that runs the Inn stated that he has been in the position of GM for nine years and as an owner for three and one-half years. Mr. Klug stated that when he became GM, the Inn had been self -hauling some but not all of the trash. The remainder was hauled by Brownrigg. In 1980 the Inn decided that it would be in the best interest for them to haul all the garbage, and they informed Brownrigg of this decision. Mr. Klug stated that at that time it was their interpretation of the ordinance that they would be allowed to do so. He stated that their financial resources are adequate to qualify. He stated he further believes that the concern of the Solid Waste Advisory Board was the issue of the franchise system. Mr. Klug stated he believes that trash hauled for compensation is not the issue. He also felt that because this is a special case, there is no detrimental impact on the public or the franchise system in granting this application. Mr. Klug believed that he is better able to provide service to the Inn because of his on-site equipment and personnel. He believed service is a key issue and that his organization is better able to provide it. Mr. Klug stated that he has not been directly or indirectly compensated for this trash hauling service. He stated he believes that he should not have to pay more for garbage service when he can provide better service at a lower cost. He believed that as the ordinance reads, his organization was invited to apply for a franchise. Chair Prante asked for any further comments in favor of granting the application to the Inn. Hearing none, she asked the Brownriggs what percentage of their income came from the Inn. Mr. Mills answered that it was a small amount at present, but it could be as high as 5 percent of the franchise area. Karen Green entered documents into the record. They included the application files for both applicants, all correspondence and memoranda from both parties, all memos from Ms. Green and Mr. Miller, the minutes from the Solid Waste Advisory Committee and Pat Porter's letter of dissent, the minutes of the May 13, 1981 BOCC meeting, copies of both Ordinances in question, and the minutes of the Commissioners and Solid Waste Committee public hearings. MINUTES OF PUBLIC HEARING ON SOLID WASTE FRANCHISE 6/18/86 PAGE 5 VOL 75 P.AcF 68 The public hearing was closed and the meeting adjourned. DESCHUTES COUNTY B D OF COMMISSIONERS BRISTOW PRANTE, Chair LAURENC A. UTTLE, Commissioner DI MAUDLIN, Commissioner BOCC:PRT 86-102 MINUTES OF PUBLIC HEARING ON SOLID WASTE FRANCHISE 6/18/86 PAGE 6