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HomeMy WebLinkAbout06.27.2002• June 27, 2002 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 8:30 a.m., on Thursday, June 27, 2002. Mayor John R. Rooff in the Chair. Roll Call: Welper, Greenwood, Clark, Jordan, Hurley, Getty. Absent: Berry. 117175 - Getty/Jordan that the Agenda, as amended, for the Special Session on Thursday, June 27, 2002, at 8:30 a.m., be accepted and approved. Ayes: Six. Absent: Berry. Motion carried. 117176 - Jordan/Clark that copies of the Call for the Special Session on Thursday, June 27, 2002, be received and placed on file. Ayes: Six. Absent: Berry. Motion carried. RESOLUTION TO BE ADOPTED 117177 - Jordan/Welper that "Resolution authorizing transfer of $370,000.00 from Fund 412, Capital Projects Fund to Fund 010, General Fund, to reimburse the general fund for lump -sum retirement payments made through Fiscal Year ended June.30, 2002", be adopted. Prior to a vote on the above motion, the following comments were heard. Michelle Weidner, Chief Financial Officer, stated that the sale of bonds was authorized last month to reimburse the general fund for retirement lump -sum payouts. Following comments a vote was taken on the above motion with the following result. Ayes: Six. Absent: Berry. Resolution adopted and upon approval by Mayor assigned No. 2002-390. ORDINANCES TO BE ADOPTED 117178 - Hurley/Welper that "an Ordinance amending the 2001 Code of Ordinances of the City of Waterloo, Iowa, as it pertains to garbage rates", be received, placed on file, considered and passed for the first time. Prior to a vote on the above motion, the following comments were heard. Michelle Weidner, Chief Financial Officer, explained that the Sanitation Fund would need an additional $180,000 to purchase one garbage truck per year, and $265,000 to eliminate Black Hawk County Solid Waste grant funding, for a targeted fee increase of $445,000 if both are approved. Mayor Rooff stated that there have been discussions for 2% months with Black Hawk County Solid Waste Commissions and no decision has been made. Tim Shea, Superintendent of Waste Management Services, has a proposal for the Sanitation Fund. Mayor Rooff stated that the Sanitation Fund has been managed well although this administration has added services for citizens such as neighborhood cleanups, free leaf pickup and bulk large item pickup. Mayor Rooff stated he believes there are several options that could better serve our constituents. Mayor Rooff stated a lot of services have been added. Ms. Weidner stated that if the council decides no increase today, she would recommend delay of purchase of capital equipment and finding an alternative to replace the Black Hawk Solid Waste Commission grant. Ms. Weidner explained the council could decide not to fund free fall leaf pickup, but it would be difficult to unschedule neighborhood cleanups at this time. Mayor Rooff stated it sounds like the council cannot delay a decision on the garbage rates for six months. Mayor Rooff stated that one of the options that has been mentioned is privatization of sanitation. Councilperson Hurley stated that the city expends approximately $160,000 for free spring and fall leaf pickup, $225,000 for the recycling bins scattered around the city, and $70,000 for neighborhood cleanups. The citizens need to understand what is at stake. • • June 27, 2002 Page 2 ORDINANCES TO BE ADOPTED CONTINUED Councilperson Getty reported that he has been working with Mr. Shea, and we have three or four months before the leaves become a problem. Mayor Rooff explained that he does not believe the council can go beyond 90 days to make a decision. Councilperson Hurley stated that the garbage trucks are in need of repair, and if Mr. Shea has ideas that would mean readjusting the rates. Ms. Weidner explained the proposed garbage rates for Option A through Option F. Ms. Weidner reported that the Sanitation Fund needs an additional $450,000 to $500,000. Ms. Weidner stated she is unsure at this time of how a change to dispose of yard waste will affect the sanitation budget. Mr. Shea reported that since July 1, 2001, there has been a 150 percent increase in the landfill fees from $10.00 per ton to $25.50 per ton. Mr. Shea stated he has attempted to handle the yard waste and work with the Iowa Department of Natural Resources. The Iowa Department of Natural Resources wants the city to compost or transport the yard waste to the landfill. Ms. Weidner reported that there has been an additional $55,000 increase in cost for the landfill since the budget was adopted in March. Mayor Rooff asked if $35,000 would allow the city to land apply the yard waste on city -owned property. Mr. Shea responded that the Waste Technicians would not have enough time to perform the work. Mr. Shea stated that neighboring cities are looking for alternatives. Mayor Rooff stated that the Fire Department could do a clean burn and asked if we have explored all our options. Mr. Shea stated he feels the best way to cost out is working with the Black Hawk Solid Waste Commission and the City of Cedar Falls. Mr. Shea reported that Waterloo and Cedar Falls are preparing an appeal to the Black Hawk Solid Waste Commission. Councilperson Hurley stated these options will take time to develop. Councilperson Hurley stated that he does not feel the range of increases proposed are out of line. The city has not raised rates in awhile and the Sanitation Department is a well run department. Councilperson Hurley stated he has a hard time linking proposed changes to a process in the future with the hole the city is in now. Waste Management Services has enacted a lot of efficiencies. Councilperson Jordan commented that on July 1, 2002, tax dollars will increase 12 percent, and if the council raises sewer and garbage rates 30 percent how much can we tax citizens. Councilperson Jordan stated the council could wait a few months to come up with alternatives. Councilperson Jordan stated that the city has reduced the amount of waste at the landfill 50 percent, and if we raise rates citizens are going to ask why recycle if the city is going to tax them more. Councilperson Jordan stated that recycling, though not profitable, helps land consumption. Councilperson Clark stated the proposed rate increases are not tax increases but a rate increase to keep up with the cost of doing business. Ms. Weidner stated that the proposed rate increases range from 10 percent up to 23 percent, and we are not asking for 30 percent increase in garbage rates. Mayor Rooff stated that citizens have become accustomed to free leaf pickup, large bulk pickups and neighborhood cleanups. Councilperson Clark stated he does not feel the city has been charging adequately for our extra services. For instance, if citizens don't have their garbage cans out by 6:00 a.m., by 8:00 a.m. people are calling that their garbage has not been picked up, and the city goes back and picks up the cans at no charge. Councilperson Clark stated that things we do routinely we do not charge for at all. Councilperson Clark stated that some of these things we should implement immediately. Councilperson Welper stated he is not opposed to a rate increase, but we may need to buy time. Councilperson Welper stated the city could change the method of how neighborhood cleanups are done. Mr. Shea reported that recycling and federal mandates have impacted garbage costs. Mr. Shea stated that most cities are going to a tier rate for garbage services, with a fee for recycling and other solid waste services. Mr. Shea stated that the city needs to look at a tier rate while leaving garbage fees as currently charged and then decide how to fund the other activities. Mr. Shea stated some cities subsidize special activities from garbage rates. Mr. Shea stated that our citizens have not had the luxury of alternatives such as a recycling center. Mayor Rooff responded that he agrees the garbage rates are not broken, but the other activities have cost associated with them. • • June 27, 2002 Page 3 ORDINANCES TO BE ADOPTED CONTINUED Councilperson Jordan stated the citizens probably would not be as opposed if we would not transfer these funds. Ms. Weidner responded that no funds were transferred from the Sanitation Fund to the General Fund in FY02 and no transfers have been budgeted from the Sanitation Fund to the General Fund for FY03. Councilperson Hurley stated that since the council has been discussing rate increases, people are changing to the small containers, but they probably are not reducing the amount of garbage. Councilperson Hurley stated that the recycling bins are probably abused by citizens from other cities. Councilperson Hurley stated the city needs to get the message to the citizens that we need their help. Councilperson Hurley stated he believes we need to raise the rates now. Councilperson Getty stated he does not know how long the city can put off a transfer station, and he feels a transfer station is an excellent idea. Councilperson Getty stated that a lot of the smaller garbage containers have extra bags on top of the cans. Councilperson Getty stated he has no problem with increasing the rates, but he feels businesses should pay for recycling. Councilperson Greenwood stated there are a lot of costs that citizens are not paying, and the fees are a payment for services provided. Councilperson Getty stated that since the council started talking about raises rates, he has had a problem with many services not included in the rates. Mayor Rooff asked what is wrong with discontinuing some services and holding the cost of the garbage services. All the extra services have brought us to this. Councilperson Getty stated that the increase in costs started with the neighborhood cleanups and the twice per year leaf pickup program. Councilperson Getty stated maybe it is time for the neighborhoods to start paying. Mayor Rooff suggested separating the recycling and special activities and addressing those items and leaving the garbage rates alone. Councilperson Welper stated he feels its not whether we raise rates but how much. Councilperson Welper stated he would like Mr. Shea to look at the costs of the other activities and charge for those services, but leave the actual garbage rates alone. Mr. Shea stated he would like to develop figures and come back with a two tier program and provide a special recycling rate. Jordan/Getty that "an Ordinance amending the 2001 Code of Ordinances of the City of Waterloo, Iowa, as it pertains to garbage rates", be tabled until Mr. Shea reports back to the council. Prior to a vote on the above motion, the following comments were heard. Councilperson Hurley stated he does not object to tabling the ordinance, but asked what impact the indecision would have on preparation of the final FY03 Budget. Ms. Weidner responded she will eliminate capital purchases and eliminate leaf pickup costs from the Sanitation Budget until the council is ready to come back with a decision. Councilperson Hurley stated he visited Central Garage last week, and Dennis Bell, Superintendent of Central Garage, showed him the repairs needed on the garbage trucks. Councilperson Hurley stated that we are spending more on repairs to the trucks than the cost to purchase a truck. A mechanic is retiring from Central Garage, and Mr. Bell is concerned he may not be allowed to replace this person. Councilperson Hurley stated the reason for the red ink is that we did not raise fees. Ms. Weidner responded that the garbage fund has not needed an increase other than capital funds for new trucks. The garbage fund has been okay until a year ago because of wage and health insurance increases and the Black Hawk County Solid Waste Commission raised the rates 150 percent. With the approval of the mover and seconder, the motion to table was withdrawn. Mayor Rooff asked that Ms. Weidner set the Sanitation Budget without any capital purchases and without the costs for the special services. • • June 27, 2002 Page 4 ORDINANCES TO BE ADOPTED CONTINUED Jim Gray, 1020 Vermont Street, stated he was under the understanding that dollars were transferred out of the Sanitation Fund to the General Fund. Mr. Gray stated that raising garbage rates $36 would not break him, but property taxes are deductible on his personal taxes. Mr. Gray stated he believes if businesses are not paying for the services, citizens should not have to pay for the services. Mr. Gray stated he believes the cost for the large items should be increased, and that it is a good idea to separate the cost for all the services. Councilperson Clark stated it looks like it is the consensus of the council that we need some kind of rate increase and to look at Mr. Shea's ideas. Mr. Shea stated that the city spends three times the $10 fee for bulk items. Mr. Shea stated he will come back to the council with suggested fees for bulk items. Mr. Shea stated that most cities have eliminated large item pickups. Councilperson Jordan stated if we raise the rates, he feels there are too many unanswered questions. Councilperson Greenwood stated we need to set the rates and balance the Sanitation Fund that we have talked about since March. Councilperson Hurley stated he is in favor of raising the garbage rates and continuing to look at tier rates. Councilperson Hurley stated if we raise the garbage rates now and then come up with a tier rate, we could then reduce the garbage rates. Councilperson Clark suggested that any income from the new rates could be used for the transfer station. Mr. Shea recommended that the automated garbage rates be left at the current rates, and he will bring proposed rates for other services, including a transfer station, back to the council for review. Mr. Shea stated that it could take a year to get a transfer station up and running as we would need to acquire property and design the transfer station. Councilperson Greenwood stated that the council still has this year to deal with. We need a new garbage truck, and he does not want to depend on the grant from the Black Hawk Solid Waste Commission. Councilperson Greenwood stated he would like to raise the rates and allocation of costs can follow. Councilperson Hurley stated the council has a responsibility to the citizens of Waterloo. Councilperson Hurley stated he is for raising the garbage rates today and adjusting the other rates down the line. Councilperson Hurley stated Mr. Shea has great ideas, but it will take a year to implement them. Councilperson Getty stated he has been on the council for 20 years, and he would be surprised if any time a fee increase was implemented that the council turned around and lowered those increases. Mayor Rooff asked for a consensus from the council. Greenwood - Raise the garbage container rates. Clark - Give Mr. Shea time to put together a proposed tier system. Welper - Wait for dollars from Mr. Shea. Jordan - Wait for proposal from Mr. Shea. Hurley - To raise the rates. Getty - Wait for Mr. Shea's proposal. Mayor Rooff instructed Ms. Weidner to balance the Sanitation Budget by eliminating any capital expenditures, and eliminating costs for any special services. Mayor Rooff asked Mr. Shea to provide the costs for the number of $1.50 bags purchased. Jordan/Getty that "an Ordinance amending the 2001 Code of Ordinances of the City of Waterloo, Iowa, as it pertains to garbage rates", be tabled until Mr. Shea reports back to the council. Ayes: Four. Nays: Greenwood, Hurley. Absent: Berry. Motion carried. The council recessed at 10:00 a.m. The council reconvened at 10:10 a.m. 117179 - Mayor Rooff discussed the proposed sewer rate increases with the council. Councilperson Getty stated that the Black Hawk Solid Waste Commission is in the process of setting up some things. Councilperson Getty stated that, hopefully, the Commission will place this item on the July agenda and pass it. i • June 27, 2002 Page 5 ORDINANCES TO BE ADOPTED CONTINUED Michelle Weidner, Chief Financial Officer, reviewed the proposed sewer rates. Ms. Weidner reported that the Sewer Fund must have a base increase of $500,000 to meet operating and debt service requirements, $500,000 needs to be added for all sanitary sewer repair costs, and $500,000 if the council would like to establish a reserve fund to use for future improvements. Ms. Weidner reported that Mr. Shea is requesting $100,000 less for personal salaries than in 1998, contracted services is flat, the chemicals to treat waste and utility costs are expected to increase. Councilpersons Clark and Jordan now absent at 10:20 a.m. Mr. Shea stated that the FY03 Sewer Budget includes costs for running the new plant, and that chemical costs for the FY03 Budget are $200,000. Ms. Weidner reviewed the proposed options, which included fee increases of 29.79 percent, 14.80 percent and 21 percent. Ms. Weidner reported that no transfers from the Sewer Fund to the General Fund are included in the proposed rates. Councilperson Greenwood stated that there are increased costs, and the city needs to have rates to keep the fund balanced. Councilperson Getty stated this is not the time to implement fee increases in the sewer fund, but we need to see what the other committee does in the next month. Councilperson Hurley stated that the perception is that the Sewer Fund is an Enterprise Fund and we should leave it alone, build it up and not transfer any funds to the General Fund. Mayor Rooff stated that some citizens say don't raise taxes, some say don't transfer the funds, but keep the same services. Mayor Rooff stated he would like to separate the funds from the levy rate and move forward. Councilperson Getty asked that the council table sewer rate increases for one month. Councilperson Welper stated that three council members are absent, and he would like to postpone any further discussion until all council members are available to discuss this issue. Getty/Welper that the Council adjourn at 10:30 a.m. Ayes: Four. Absent: Jordan, Clark, Berry. Motion carried. feARA Nancy Eckert City Clerk