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HomeMy WebLinkAbout1979.02.12_OPWA Minutes_SpecialOn Monday, February 12, 1979, the Owasso Public Works Authority met in special session, in Council Chambers at City Hall, per Notice of Public Meeting and Agenda, referenced and made a part here- of. Present: Bill Williams, Mayor Boyd Spencer, Vice Mayor Don Thompson, Councilperson Robbie Fickle, Councilperson Wayne Meyer, City Manager Wauhilleau Webb, City Clerk Absent: Harold Charney, City Attorney The meeting was called to order at 7:19 PM, with Mayor Williams presiding. Mayor Williams explained the purpose of this special meeting was to incur bond indebtedness in the amount of $380,000.00 for the purpose to fund the City owned trash service proposal. Motion was made by Don Thompson for the City to incur an in- debtedness of $380,000.00 for the purpose of funding a City owned trash service. As there was no second to this motion, Mayor Williams asked Councilman Thompson to express his opinion regarding this in- debtedness. Mr. Thompson replied that he sees it as a way to solve our continuing refuse problem and also an opportunity to make some money for the City; and, it would not be without trouble, for sure, but we would be in control of our own problems. Mayor Williams commented he has checked into this type of sys- tem and feels it will work. Mr. Spencer said he would have to admit when Council first started talking about this project he was for it but he now thinks the City went into it too hastily and did not search it out and feels the City will be in jeopardy if it takes this route. He said the City did not take into consideration the number of men we would need to employ and the expense it would add to the budget, such as salaries and insurance. He said he asked the auditor how close this would run the City on the budget and the auditor replied it would run the City very close as the specified indebtedness did not include wages and insurance. Mr. Spencer said he cannot agree to commit the City to that much money. Mayor Williams asked Mr. Meyer if he had any figures on sala- ries and insurance and Mr. Meyer said he did not but wages and insurance would need to be considered and that it is true it would be an additional outlay for those items. Owasso Public Works Special Meeting February 12, 1979 Page Two Mayor Williams said he agreed with Mr. Thompson in that the City has had tremendous problems in trash and we could con- trol those problems in the future. Mr. Spencer stated again he cannot see and justify committing the City to $380,000.00 to go into the trash business when there are other haulers wanting to come in and do -the -job and not charge us a thing. Mrs. Fickle commented she has felt from the very beginning the Poly -Kart is the only way to go in Owasso but she did not feel the City should be the service agent for the trash collection due to personnel problems and initial outlay. She further com- mented that other cities operating their own trash service are operating in the red. Mrs. Fickle said the "if" factor is just too great, such as "if" we get a good supervisor, "if" we get good personnel, "if" we have to raise the fee in the future. Mrs. Fickle questioned burdening ourselves with bonds at this time. Mr. Jim Payne, manufacturer's representative for Load -All, was present and apologized to City Council that he did not have a total cost picture for them at this point to assist them in making their decision. He said he is very familiar with the business, being a major manufacturer in this type business, and that his customers have been 50/50 in both the private sector and in the government, and he does not have a prefer- ence. He said in one city of 5,000 they operate with only two trucks and two men, those men being the ages of 57 and 59. Another town of 1,300 operates with six trucks and one man. He said they have a system that is good for the city and the citizens. Mayor Williams stated we are not going to have another trash service to clean up after as we have had to do with the last two trash haulers. Mr. John Truel with Woolsey and Company, Inc. was present and stated he is very familiar with solid waste disposal and has worked with many communities facing this same problem as our City. He said there is an approach for the City wherein the community decides on the system they wish to employ, recog- nizing the problems the City would have with operation, ser- vice, etc., then the City buy the service and hire a private service to operate the equipment. In this manner the city accomplishes their goal but does not get mired down with the city handling the problems. This enables the rate to be less as a city can finance all the necessary equipment at a lower rate than an individual. 1 1 Owasso Public Works Special Meeting February 12, 1979 Page Three Mr. Spencer said the City is presently short of firemen and short of people in other departments and he didn't see where this proposed plan would generate enough money for our needs, and his main and immediate concern was the $380,000.00 com- mittment. He suggested we contract the service and keep an eye on them and should their performance be unsatisfactory by the time that would be determined the City could have made the slow steps necessary to get into the business of trash. Mayor Williams stated when we put in water and sewer lines we didn't know what our revenue would be, but we had to take that chance in order to provide for future growth. '--Zr. Hilborne explained the action required to incur this afore- mentioned indebtedness would require a 4/5 vote; and, in our case a unanamous approval from the Council would be required with the four members only. Mrs. Fickle asked Mr. Truel if they would finance these bonds if it were on only trash revenue at $5.50 monthly. Mr. Truel replied yes, that it would not be necessary to include water and sewer revenue. Mrs. Fickle said she had worked on the assumption we would generate enough cash flow to take care of the bonds but she was now concerned with the expense of additional personnel to be hired and the maintenance and operational expenses. Don Thompson said cities are picking up a little over 500 homes a day using this type service, with one man and one truck. Mr. Payne showed a film of the Poly -Kart service in operation. The film showed the service in what would be adverse weather conditions (the snow appeared to be several feet deep) and it was taking five to eight seconds per house, with one man. As there had been a motion at the beginning of this meeting and, prior to the foregoing recorded conversation, without a second, Mayor Williams called for a second,again. Due to a lack of a second, no vote was taken on the incurring of an indebtedness of $380,000.00. Mayor Williams adjourned this special meeting at 8:12 PM. CIT CLERK J _ 1. CZ.�.�.