HomeMy WebLinkAbout02/12/90CITY COUNCIL WORK SESSION MINUTES
February 12, 1990, 5:30 p.m.
Large Conference Room
Members present: Mayor McKinley, Councilpersons Angel,
Budak, Fox, Dell, Brown and Wright.
The agenda, as proposed, was approved.
The purpose of the meeting was to discuss the future of the
City's solid waste collection service system. As instructed
by the Mayor and Public Works Committee, John Meyer, Public
Works Director, has received eight proposals from companies
interested in the City's solid waste collection system. A
copy of the proposals is on file in the office of the
Clerk/Auditor.
Mr. Meyer outlined the three basic alternatives as follows:
1. Proceed with the existing work force and initiate the
yard waste collection procedure. This would require
the purchase of yard waste collection vehicles and the
employment of five additional employees. An additional
rate increase of $.70 to $.80 per month would also be
necessitated in September, 1990, to cover the initial
cost of the equipment.
2. Reorganize the existing solid waste collection system
as a municipal operation. This alternative could
potentially save the City $200,000 per year but would
require negotiated changes in the existing labor
contract. The use of one or two person garbage trucks
would be necessary resulting in the need for six less
individuals than required in alternate 1 above. It
would eliminate individuals from the work force that
are not able to, either physically or through driver
license limitations, both drive trucks and throw
garbage. Approximately four of the existing work force
personnel would be replaced and six layed off.
3. Privately contract the solid waste collection operation
resulting in a savings of approximately $200,000 per
year. The existing City work force could be
employed by the contracting company at a slightly less
wage and benefit package.
Each of the alternatives were discussed in detail with much
discussion revolving around the potential lay off of City
employees. Discussion was also heard on the use of the City
equipment by the contracting companies. This could become a
part of the bid document. If the City were to bid the
collection service and the bids were too high, the City
could at that time reject any and all bids and re-evaluate
the future course of action.
Various representatives of the private companies expressing
an interest in the garbage collection were present.
Representatives of Browning-Ferris suggested that the City
establish the value of the equipment either for purchase or
lease in its bid documents. If the City elected to contract
these services, the City could still initiate a per bag
charge and would continue the billing process. It
Work Session Minutes
February 12, 1990
Page 2
was also reported that very few cities have gone back to the
city collection of garbage once a private contract is
signed.
Steve Piper, business representative for Labor's Local 353,
reported his opposition to any efforts to privatize the
collection system. He feels that the City would be giving
up accountability to this very important service. He also
commented that as a contract employee, they would not be
paid as much and a pension plan would not be provided. He
also indicated that there is no guarantee that the employees
will be employed by the private contractor. He also
indicated that there are examples of cities where the
private contracts have not worked and cities have gone back
to collecting their own garbage and that contracting
services will disproportionately displace minorities. He
indicated their willingness to work on alternative number 2
as outlined.
Mayor McKinley indicated that the council must decide on
which alternative it wants to pursue and that in any case,
each of the alternatives will need to be carefully reviewed
and consideration given to each of the problems and
circumstances presented by each. Mr. Meyer clarified that
the Union has been sent all information relating to the
privatization of garbage collection throughout the process.
Councilperson Wright indicated her need for more time to
review the situation and how the displacement of the
employees could be minimized.
After discussion, it was agreed that alternative 2 and 3
should be investigated both of which would allow a better
position to make a decision on the contracting of the
services.
Kathy Oberle, 710 Forest Avenue, stated that if the City
does privatize the garbage collection, the corporate size of
the contracting company should be revealed and that the
company should supply all appropriate financial documents.
She also urged the City to be upfront with the citizens
in discussing this issue.
No official action was taken; however, the Public Works
Director was authorized to proceed with investigating
alternatives 2 and 3.
With no further business before the Committee, the meeting
was adjourned.
Larry P. Burger
City Clerk/Auditor