[CALL TO ORDER]
[00:00:04]
WE'LL CALL THIS MEETING TO ORDER TODAY IS TUESDAY MAY 4TH YEAR 2021. IT IS THREE. ONE IN THE AFTERNOON. WE'RE IN COUNCIL CHAMBERS OF 2 22, NORTH TENNESSEE ST. THE GREAT CITY OF MCKINNEY. FIRST ORDER OF BUSINESS IS PUBLIC COMMENTS ON AGENDA ITEMS. DO NOT SHOW ANY YOU. THAT'S IT WILL MOVE TO ITEM 210345 DISCUSS PROPOSED CHANGES TO FEE ORDINANCE. IT'S
[PUBLIC COMMENTS ON AGENDA ITEMS]
[Discuss Proposed Changes to Fee Ordinance]
DEEP. THANK YOU VERY MUCH. MR MAYOR, MEMBERS OF COUNCIL STEVE TILTON, ASSISTANT CITY MANAGER.I'LL WALK YOU TO THE FIRST OF WHAT WILL BE A TWO PART PRESENTATION TONIGHT ON ONE OF THE CONSENT AGENDA ITEMS, WHICH IS SOME PROPOSED CHANGES TO OUR FEE ORDINANCE. THE FIRST PART OF THE PRESENTATION IS REGARDING THE HOPEFULLY THE FINALIZATION WITH COUNSEL'S CONCERNS, COUNSELOR CONCURRENCE OF SOME ONGOING ON NEGOTIATIONS WITH WASTE CONNECTIONS REGARDING PROPOSED FEE INCREASE. THE DATES BACK. QUITE HONESTLY, A FEW YEARS. WE'VE COMPLETED OUR RESEARCH ON A FINALIZED OUR RECOMMENDATIONS FOR THE COUNCIL AFTER THE COUNCIL IS COMFORTABLE WITH THAT CONVERSATION WILL MOVE ON TO DIRECTOR KIM CARLY AT THE AIRPORT, WHO WILL HAVE SOME PROPOSED. SPECIAL SPECIAL EVENT CHANGES TO THE FEES REGARDED REGARDING THE AIRPORT, EH? SO WITH THAT I'LL GET STARTED ON THE FIRST PART OF THE PRESENTATION, WHICH AGAIN IS OUR NEGOTIATIONS WITH WASTE CONNECTION? JUST AS A PART OF HISTORY, THIS RELATIONSHIP WITH WASTE CONNECTION GOES BACK ACTUALLY TO 1996, A DIFFERENT REITERATIONS OF WHAT STARTED WITH I YES, I ULTIMATELY PROGRESSIVE WASTE. AND THEN IN 2017 WASTE CONNECTIONS TOOK OVER THAT CONTRACT IN 2018, THE CITY SIMILAR TO THE CITY OF FRISCO, AS WELL AS SEVERAL OTHER MUNICIPALITIES SERVICE BY WASTE CONNECTIONS. THE CITY RECEIVED A FEE INCREASE REQUEST FROM THEM, SO ULTIMATELY WE BROUGHT THAT REQUEST BEFORE THE CITY COUNCIL ON BASICALLY THE COUNCIL'S DIRECTION AT THAT TIME WAS SURE WE WILL CONSIDER IT. BUT AS WE ALWAYS DO, LET'S MAKE SOME DECISIONS OR RECOMMENDATIONS THAT ARE BASED ON THAT. SO THE COUNCIL GAVE STAFFS AND DIRECTION DO A COUPLE OF DIFFERENT THINGS.
NUMBER ONE. WE ENGAGE THE FIRM OF BURNS AND MCDONNELL FROM THAT WE'VE USED SEVERAL TIMES THAT HE HAS SOME EXPERTISE AND WASTE COLLECTIONS REFUSE AND RECYCLING. AND THEY PERFORMED THE MARKET STUDY FOR US ON THEN. ULTIMATELY WE ALSO ENGAGED WITH OUR AUDIT FIRM BE KATIE TO ACTUALLY PERFORM AN AUDIT OF THE WASTE CONNECTIONS, FINANCIALS. A COUPLE OF POINTS.
I THINK A RELEVANT TO THE CLAIMS THAT WASTE CONNECTIONS MADE AS TO WHY THEY BELIEVE THEIR FEE INCREASE WAS JUSTIFIED. INCREASES IN LABOR COST CERTAINLY FROM THE CITY SIDE, ESPECIALLY WITH FOLKS WITH CD. L'S THINGS OF THAT NATURE. WE HAD ABSOLUTELY SEEN THAT AS WELL. CAPITAL OUTLAY EXPENSES, EYES, THE CITIES CONTINUE TO GROW THE AMOUNT OF MONEY THAT THEY NEED TO PUT INTO TRUCKS. THE RECYCLING FACILITY THAT WE HAVE HERE, THE MURPH ALL THIS CAPITAL EXPENDITURES FOR THEM. OUTCOME COLLECTION GOING TO KIND OF PUT A PAUSE ON THAT ONE FOR A SECOND. THERE'S A WHOLE MUCH SLIDE ON THAT, BUT BUT CERTAINLY WASTE CONNECTIONS AS WELL AS OUR STAFF SPENT A GOOD AMOUNT OF TIME ON A DAILY BASIS, SIX DAYS A WEEK. IN THE DOWNTOWN, MAKING SURE THAT THAT THAT STAYS CLEAN EYES REPRESENTATIVE THE TYPE OF DOWNTOWN THAT WE WANT AS A CITY SO CERTAIN LITTLE BIT MORE ON THE DOWNTOWN TO COME HERE A SECOND ON THEN, THE RECYCLING MARKET OVERALL IS A MAJOR FACTOR. NOT JUSTIN MCKINNEY, NOT JUST IN TEXAS, BUT THROUGHOUT THE ENTIRE UNITED STATES. GOOD PORTION OF RECYCLING MATERIALS IN UNITED STATES USED TO GET SENT OFF QUITE HONESTLY OVERSEAS TO CHINA. CHINA'S ACCEPTANCE RATE FOR WHAT THEY CALL CLEAN MATERIALS IS REALLY CHANGED FROM ABOUT 20% BEING DIRTY OR UNCLEAN TO DOWN TO ABOUT 2, SO IT IS BASKETBALL. DRASTICALLY CHANGED THE WAY THAT RECYCLING AND MCKINNEY NOR TEXAS, TEXAS OVERALL THE UNITED STATES HAS DONE AND WHAT THAT GENERALLY HAS MEANT IS THE COST FOR RECYCLING WHEN IN THE LATE EIGHTIES. THE EARLY TO MID NINETIES WAS ACTUALLY GENERATOR FOR REFUSE COMPANIES AS WELL AS MUNICIPALITIES. IT DEFINITELY HAS NOT BEEN A REVENUE GENERATOR FOR ANY OF THOSE ENTITIES. FOR QUITE A WHILE. AND THEN OUR EXISTING CONTRACT WASTE CONNECTIONS IS RESPONSIBLE FOR THOSE FEES, SO IT HAS GONE FROM SOMETHING THAT HAS BEEN MAKING THE MONEY TO SOMETHING WHERE THEY HAVE BEEN LOSING MONEY OFF THE COURSE OF THE LAST SEVERAL YEARS. IN 2018 WHEN WE FIRST GOT THIS REQUEST ONE OF THE THINGS THAT WE DID AFTER BRING TO THE COUNCIL'S ATTENTION AS IT WAS A NEW CONTRACT FOR THEM. THEY WERE MAKING SOME CHANGES TO HOW THEY OPERATE IN THE FIELD. VERY SPECIFICALLY, THEY WENT FROM.
MANUAL OR PAPER BASE ROUTES TO THE IMPLEMENT SOME ELECTRONIC FEATURES ON THERE'S SOME HICCUPS WITH THAT, QUITE FRANKLY, IN ONE OF THE THINGS THAT WE TOLD THEM WAS, OUR COUNCIL IS NOT GOING TO BE COMFORTABLE EVEN IF THE DATA KIND OF BEARS OUT. THE POTENTIALLY A FEE INCREASE IS JUSTIFIED. WE WANT TO MAKE SURE THAT THE SERVICE LEVELS THAT ARE RESIDENTS OF BUSINESSES EXPECT AND DESERVE IS MAINTAINED AND IN THIS CASE NEEDS TO BE INCREASED BACK TO WHERE THEY WERE PRIOR TO THEM, TAKING OVER. INTO THE CREDIT AND ABOUT A SIX MONTH PERIOD FOR QUITE A WHILE, THEY WERE ABLE TO DO THAT THEY DID
[00:05:04]
DELIVER ON THE PROMISES THAT THEY MADE THEIR THAT THOSE IMPROVEMENTS WILL BE MADE TRAINING FOR THEIR STAFF WOULD OCCUR ON GENERALLY SPEAKING THAT THAT DEFINITELY HAS HAPPENED. AND LASTLY, AS WE TALKED ABOUT THIS IS WE ARE UNDER AN EXISTING CONTRACT THAT RUNS UNTIL SEPTEMBER. 30TH OF 2024, OF COURSE, THE CONSIDERATION AS WELL. WHAT IF WE DID NOTHING? WE ARE UNDER WE ARE UNDER AN EXISTING AGREEMENT. THAT'S WHERE SOMETHING AND YES, THERE IS AND WE TALKED ABOUT ACHIEVING BALANCE BETWEEN YOU KNOW, IN THIS CASE, THE CITY AND IN THIS CASE, THE CONTRACTOR. MAKING IT FAIR FOR ALL PARTIES. IF IT'S AN UNBALANCED CONTRACT, IT CERTAINLY WOULDN'T BE GOOD FOR THE CITY OF POTENTIALLY ULTIMATELY THEY WALKED OFF THE JOB OR IF SERVICE LEVELS FOR BUSINESSES AND RESIDENTS.DRAMATICALLY DECREASED S 01 OF THE THINGS THAT WE HAD BURNS MCDONALD LOOK AT IS, IF THAT WERE TO BE A BETTER TERM, OUR DOOMSDAY SCENARIO THAT OCCURRED. WHAT WOULD THAT MEAN? WHAT WOULD THAT MEAN FOR OUR ABILITY TO HIRE BOTH OF TEMPORARY CONTRACTOR IN THE LONG TERM IF WE HADN'T GOT TO AN RFP PROCESS, WHAT WOULD THAT LOOK LIKE? SO ONE OF THE THINGS THAT BURNS AND MCDONNELL LOOKED AT IS WELL, WE BELIEVE WITH ULTIMATELY THE NEGOTIATED RATES YOU'RE GOING TO SEE IN THE NEXT COUPLE OF SLIDES. WE BELIEVE THAT EVEN IF IT GOES, EVEN AT THOSE NEGOTIATED RATES, THEY'RE GONNA BE CHEAPER THAN WHAT WE WOULD ACHIEVE IF WE WERE TO GO OUT TO THE MARKET RIGHT NOW. FOR EQUIVALENT SERVICES TO WHAT WE HAVE SO FROM A STAFF PERSPECTIVE THAT CERTAINLY KEY DID NOT WANT TO COME BACK TO THE CITY COUNCIL RECOMMENDING ANYTHING THAT WE BELIEVE IF WE WERE TO GO TOE RFP, WE WOULD GET CHEAPER. SO WHAT ARE THE ACTUAL STAFF RECOMMENDATIONS? WHAT DOES THIS SHAKE OUT TOO? WELL REALLY THINK IT BOILS DOWN TO THREE DIFFERENT CATEGORIES. THE RESIDENTIAL COMPONENT, THE CONVERSION, COMMERCIAL COMPONENT AND ULTIMATELY, THE DOWNTOWN COMPONENT, CAUSE IT'S A SEPARATE SECTION. OVER ORDINANCE. IT'S SPELLED OUT DIFFERENTLY SO IN THE RESIDENTIAL SIDE. PROPOSING AN INCREASE OF A DOLLAR 60 PER HOME, WHICH IS A 10% INCREASE. THINK IT'S IMPORTANT TO NOTE THAT WE HAVE NOT PASSED ON ANY INCREASES TO OUR RESIDENTS SINCE 2006. SINCE 8 2008 DIFFERENT TIMES. WASTE CONNECTIONS, FURTHER CONTRACT OR PROGRESSIVE WAYS. YOU'RE GOING BACK TO THAT? YES I WHOEVER. WHOEVER WAS ENTITY IN CONTROL THAT POINT IN TIME. HOW TO WRITE IN THE AGREEMENT TO COME BACK TO GET UP TO 75% OF WHATEVER THE CP I WAS FOR THAT GIVEN YEAR WITH CITY CONCURRENCE, SO A DIFFERENT TIMES WE DID THAT EVERY TIME THE CITY EIGHT THAT COST SO ARE. ARE OUR RESIDENTS ON THEIR MONTHLY FEE IS $15.36 HAVE NOT SEEN AN INCREASE SINCE 2006. SO YOU'RE SAYING IT'S RIGHT HAS BEEN IT'S BEEN RAISED ON THE CITY EIGHT TIMES. YOU'VE NEVER PASSED THAT ON TO THE, UH, YEAH, I THINK YOU'RE SAYING THE SAME THING. THAT CONTRACTOR HAS GOT THAT CPS 75% OF THAT. C P I EIGHT DIFFERENT TIMES FROM 2008 UP UNTIL NOW, SO THAT'S EIGHT INCREASES. NO INCREASES, TOO. RESINS THAT IS CORRECT. THAT'S ALL I NEED TO SEE. WHAT WAS THE AGGREGATE AMOUNT OF THOSE INCREASES. I WOULD SAY, PROBABLY SLEEPING IN 1.5. I'M ABSOLUTELY ESTIMATING HERE. I CAN CERTAINLY GET TO THE FINAL TWO, SAY 10. PROBABLY BASED ON BASED ON WHAT THIS SLEEPY EYES IN ANY GIVEN YEAR. YOU KNOW, AS YOU KNOW, SUMMER HIGHER SUMMER LOWER UM. ON THE COMMERCIAL SIDE IS PART OF THE MARKET STUDY. I SHOULD NOTE IS WELL ON THE RESIDENTIAL SIDE BURNS. MCDONALD NOTED THAT THEY BELIEVE THAT OUR CURRENT RATES ARE 15% BELOW. WHERE WOULD BE IF MARKETS EVEN A 10% INCREASE? WE STILL BELIEVE HER 5% BELOW. WHERE WOULD BE MARKET RATE IF WE WERE TO TAKE IT OUT TO R B? THE COMMERCIAL SIDE. WE'RE ACTUALLY BEEN FARTHER BELOW THE MARKET, DEPENDING ON THE COMMERCIAL SERVICE, OR ANYWHERE BETWEEN 33 40% BELOW. WE BELIEVE THE MARKET RATES ARE IF WE WERE TO GO OUT TO COMPETITIVE RFP. SO WHAT WE'RE PROPOSING HERE IS AN INCREASE OF 25% THAT THAT WAS THEIR INITIAL ASK A 25% AND WHAT WE NEGOTIATE WITH HIM IS YES. WE ACTUALLY THINK THAT'S FAIR, BUT WE'D LIKE TO SPREAD THAT 25% OVER THE COURSE OF THREE YEARS.
10% 10% 5. IT'S IMPORTANT TO NOTE ON THAT. THAT IS NOT ITS. EACH OF THOSE CALCULATIONS IS ON THE BASE, SO IT'S NOT COMPOUNDING. IT'S NOT 10. THEN 10% OF WHAT WAS 100% EACH OF THOSE COLLECTIVELY, IT'S 10% OF OUR BASE YEAR AND THE NEXT YEAR'S TECHNICALLY 120% IN THE LAST YEARS, TECHNICALLY ON IN 25% ALL OF THAT BASE HERE. AND THEN ON THE DOWNTOWN THE DOWNTOWN. WHEN YOU LOOK AT THOSE NUMBERS AS AN EXAMPLE THAT IN THE CURRENT ORDINANCE, WHICH IS ANOTHER CASE OF TOOK TO MY KNOWLEDGE INTO THE CONVERSATION THAT THAT WAS STAFF. WE'VE NOT INCREASED THE DOWNTOWN RATE SINCE 1993. S SO, UM. IT'S BEEN A LONG TIME SINCE THAT'S THAT'S OCCURRED. SO WHEN YOU SEE THESE PROPOSED CHANGES HERE, AT EXAMPLE, WHAT IS RATED AS A LOW, WHICH IS GONNA BE YOUR LIGHTEST OFFICE, NO FOOD SERVICE THINGS OF THAT NATURE POTENTIALLY GOING FROM 28 48. 2 63 30 ON FACE. IT LOOKS LIKE A PRETTY PRETTY LARGE INCREASE IN AND IT IS IN SOME WE TAKE SERIOUSLY. BUT WHEN YOU ALSO LOOK AT WHAT A DOWNTOWN BUSINESS AND EQUIVALENT OFFICE SPACE. ESPECIALLY AS YOU GO UP TO THE LARGER HIGH CATEGORIES,
[00:10:05]
WHICH WOULD BE A FULL SCALE RESTAURANT. EVEN PROPOSING ARE OUR FEE OF 5 83 49 EQUIVALENT SERVICE FOR A FULL SERVICE RESTAURANT OUTSIDE OF SOMEWHERE IN THE DOWNTOWN SQUARE. IT'S GOING TO BE ANYWHERE BETWEEN 636 109 YEARS SEVEN. DOLLARS. SO WE THINK THAT THESE RATES IN THE DOWNTOWN ARE COMPETITIVE. THEY'RE FAIR BASED ON WHAT OTHER WHAT OTHER BUSINESSES OUTSIDE OF A DOWNTOWN SQUARE ARE PAYING. BUT ALSO WE'RE MINDFUL THE FACT THAT YOU KNOW IF I'M ONE OF THOSE BUSINESS OWNERS. THIS IS STILL A LARGE JUMP A LITTLE BIT MORE ON THE DOWNTOWN HERE IN A MINUTE IS WELL. OTHER STAFF RECOMMENDATIONS TO THE AGREEMENT CHANGING THE CPU, WHICH IS IN THEIR CURRENT AGREEMENT TO THE CPS GARBAGE.IT'S A SPECIALIZED GARBAGE INDEX. IT IS COMMON FOR AGREEMENTS TO HAVE THE CPR GARBAGE. GENERALLY WHAT THAT MEANS. IT'S PROBABLY GOING TO BE IN THE NEIGHBORHOOD OF HALF PERCENT 2% HIGHER CPR GARBAGE THAN WHAT THE CPR YOU WOULD BE. THERE IS A PROPOSED LUMP SUM PAYMENT OF $705,000.20 DOLLARS, WHICH IS THE COMBINATION OF. BUT ALL THESE PROPOSED RATES ARE FOR THE DOWNTOWN FOR THE COMMERCIAL AND FOR THE RESIDENTIAL. AFTER JANUARY ONE RETRO OF 2021, A ZWEI WERE GETTING INTO THESE NEGOTIATIONS COVERT HIT QUITE HONESTLY, BOTH THE CITY AS WELL AS WASTE CONNECTIONS PUT A PAUSE ON. NEGOTIATIONS FOR GOOD GOOD NUMBER OF TIME. WE ALL HAD DIFFERENT THINGS TO WORK ON, BUT IN GOOD FAITH, WE SAID, LOOK, ULTIMATELY WE TAKE THIS BACK BEFORE THE CITY COUNCIL. WE WERE OPPOSED TO THEM THAT AFFAIR. DATE FOR WHEN THIS AGREEMENT IF THE COUNCIL CONCURS WITH IT, TO BE EFFECTIVE, WOULD BE GENERALLY ONE OF 2021 BIG CHANGE IN MY MIND KIND OF A LACK OF BETTER FROM A WIN FOR THE CITY, AT LEAST IN TERMS OF WHAT THEIR INITIAL ASK WAS. HIS WAIST CONNECTIONS WANTED US TO TAKE ON THE COST AND BEAR THE RESPONSIBILITY FOR THE COST OF THEIR SECOND PROGRAM, A ZOO WE TALKED ABOUT AT THE START OF THIS CONVERSATION. THAT WORLD IS DRAMATICALLY DIFFERENT NOW THAN IT WAS. AND DEFINITELY 20 YEARS AGO. WE PUSH BACK PRETTY HARD ON THAT AND SAID NO. WE WANT YOU TO MAINTAIN THE RESPONSIBILITY FOR THAT. THE COST FOR THAT NOW WHAT WE WILL GIVE OR WHAT STAFF IS RECOMMENDING TO THE CITY COUNCIL AND THE CURRENT AGREEMENT, AND THIS MADE SENSE, ESPECIALLY WHEN RECYCLING WAS A REVENUE GENERATOR. UM. AFTER ALL OF THEIR COSTS ALL OF THEIR BASICALLY COSTS AND PROCESSING FEES, THINGS OF THAT NATURE, SO THEIR NET PROFIT BACK WHEN RECYCLING WAS PROFITABLE, THEY REQUIRED TO SPLIT THAT WITH THE CITY 50 50. AND AT THE COURSE OF QUARTERLY PAYMENTS WERE MADE AND THE COURSE AT THE END OF EACH YEAR IF THEY HAD NOT MADE $40,000 WITH THE PAYMENTS OF THE CITY, THERE WOULD BE A TRUE UP S, SO THERE WAS A MINIMUM PAYMENT. $40,000 ON AN ANNUAL BASIS. FURTHER SECOND PROGRAM. WE ARE PROPOSING THAT WE WAIVE THAT IN THE AMENDED AGREEMENT ON LASTLY, EXPLAIN THE SHERIFF, THE 40,000. WE WERE PAYING THEM THEY'RE PAYING. THEY WERE REQUIRED TO PAY US AT LEAST THAT MUCH, SO THEY'RE NOT. THEY'RE NOT MAKING ANY MONEY.
NO JUST TRACKING PROGRAM. SO ARE THEY STILL MAKING THOSE PAYMENTS? THAT THEY HAVE BEEN? YES SO FROM THEIR PERSPECTIVE, CERTAINLY WANT TO SPEAK FOR THEM, BUT THEY'RE LOSING MONEY AND RECYCLING. AND THEN AT THE END OF THE YEAR BECAUSE EVERY QUARTER WE'RE NOT SHARING IN A REVENUE, SO IT'S ZERO. 00 COME THE FOURTH QUARTER. IT'S ALSO ZERO, BUT THERE'S A CLAUSE IN THEIR EXISTING AGREEMENT THAT SAYS AT A MINIMUM, YOU WILL PAY THE CITY $40,000 FOR RECYCLING, SO THEY WERE CUTTING US A CHECK, TYPICALLY PROBABLY IN JANUARY. PREVIOUS YEAR, $40,000 BECAUSE THAT WAS YOUR MINIMUM PAYMENT, NOT BEEN PROFITABLE. GOING TO SAY EIGHT YEARS. DID THAT AGAIN. I CERTAINLY DOES AN ESTIMATE ON MY PART. I COULD GET YOU THE ACTUAL BUT. I'D PROBABLY PUNCH, SIR. I UNDERSTAND. CHANGE THAT WELL. ALL RIGHT. THE LAST PART FROM THE FROM THE CITY'S PERSPECTIVE, WHICH WE DEFINITELY SEE IS SOMETHING THAT WE HAVE WANTED TO HAVE FOR A WHILE. THE PERFORMANCE BOND GOING ALL THE WAY BACK TO WHEN THE CONTRACT WAS WITH I E. ESSA AND ULTIMATELY WITH PROGRESSIVE AND NOW WASTE CONNECTIONS. THEIR PERFORMANCE BOND WAS ONLY A MILLION DOLLARS AND FOR A CONTRACT OF THIS SIZE COMMUNITY OF THIS SIZE. THAT'S FAIRLY LOW S O. WE HAVE ASKED THEM AND THEY HAVE ACCEPTED THEY WILL DOUBLE THAT FROM A MILLION DOLLARS TO $2 MILLION. HOPEFULLY, WE NEVER HAVE TO UTILIZE THAT. THAT, OF COURSE, IS NOT THE GOAL. BUT IT'S A LITTLE BIT MORE ASSURANCE FROM THE CITY SIDE THAT THAT PERFORMANCE BOND WILL BE INCREASING MILLION DOLLARS PERFORMANCE MONEY COSTS. THAT WHAT IS THE PERFORMANCE BOND COST WAS $2 MILLION PERFORMANCES A LOT, PROBABLY A LOT LESS THAN 40, RIGHT. I DON'T KNOW.
[00:15:05]
SO THE LAST NIGHT THAT I HAVE HERE JUST KIND OF AS A RECAP ON THE COMMERCIAL ON THE RESIDENTIAL SIDE STAFF IS RECOMMENDING THAT THESE THESE INCREASES ARE PASSED ON TO THE RESIDENTS AND, ULTIMATELY, THE COMMERCIAL BUSINESSES. ON JULY 1 TO BE ABLE TO GIVE THEM A LITTLE BIT OF TIME TO UNDERSTAND THE INCREASE. ASK ANY QUESTIONS THAT THEY MAY HAVE CERTAINLY FROM THE CITY PERSPECTIVE, WE WILL MAKE SURE THAT WE'RE GETTING MARKETING COMMUNICATIONS INVOLVED, SO KNOWN IS SHOCKED. BY THE PROPOSED INCREASES. THE DOWNTOWN IS A LITTLE BIT DIFFERENT. SO THE JULY ONE, AT LEAST FROM A STAFF PERSPECTIVE AGAIN. IT'S PROPOSED ON THE RESIDENTIAL COMMERCIAL, THE DOWNTOWN BECAUSE OF THE POTENTIAL CHANGE AND WHAT THOSE RATES ARE. TO BE QUITE FRANK. THERE'S AN INCONSISTENCY IN THE BUILDING IN DOWNTOWN. THERE IS A PORTION OF THE BUSINESSES THAT FROM WHAT WE CAN TELL IN CONVERSATIONS WITH WASTE CONNECTIONS, THEY'RE NOT PAYING, AND I THINK THERE'S A THERE'S A MULTITUDE OF FACTORS FOR THAT. I THINK THAT BECAUSE WASTE CONNECTIONS DOES THE COMMERCIAL BUILDING THEY MAY NOT ALWAYS KNOW WHEN A BUSINESS IS COMING IN TO THE DOWNTOWN. I DO BELIEVE THERE'S BEEN SOME THIS INFORMATION OVER THE YEARS WHERE SOME BUSINESS OWNERS EVEN IN GOOD FAITH MAY NOT BELIEVE THAT THEY NEED TO HAVE THEIR OWN COMMERCIAL ACCOUNT. BUT IT'S SOMETHING THAT THE CITY. JUST PAYS FOR SO BE HONEST. I FEELS VERY SENSITIVE TO THE DOWNTOWN. I WANT TO MAKE SURE THAT WE'RE GIVING THE DOWNTOWN BUSINESSES AT LEAST MY RECOMMENDATION BE AN OPPORTUNITY TO SEE THAT UNDERSTAND IT. COMMENT ON IT ON ULTIMATELY HAVE STAFF COME BACK TO YOU? PROBABLY IN THE SEPTEMBER OCTOBER TIME FRAME WAS FINAL RECOMMENDATIONS ON ONE. MAYBE THOSE INCREASES. WERE TO TAKE PLACE, SO WE'RE NOT RECOMMENDING AT THIS POINT IN TIME THAT THE DOWNTOWN INCREASES ARE PASSED ON. BUT AGAIN, YOU ALLOW STAFF TO HAVE A LITTLE BIT OF A MARKETING CAMPAIGN INFORMATIONAL CAMPAIGN WITH WITH DOWNTOWN BUSINESSES WITH THE MAIN STREET. ANSWER ANY QUESTIONS? THEY MAY HAVE SEEN ANY FEEDBACK AND THEN ULTIMATELY BRING THAT INFORMATION BACK BEFORE THE COUNCIL. EXPLAIN TO ME HOW I MEAN, SO YOU HAVE. YOU KNOW. GROUP OF BUSINESSES FOR DOWNTOWN IN THE BACKSIDE. IS EACH OF THEM WERE NOT REQUIRED TO HAVE THEIR OWN. SO JUST HISTORICALLY, THE WAY THAT THE DOWNTOWN HAS WORKED UP UNTIL COVE IT, I THINK IS POLITICIANS THINGS THAT THE COUNCIL KNOWS BUSINESS OWNERS WOULD LITERALLY TAKE THEIR TRASH BAGS AND JUST GET OUTSIDE AND. GUESS YOU COULD SAY TO THE CREDIT OF WASTE CONNECTIONS THAT ALSO CERTAINLY TO OUR STAFF WHO WERE DOWN THERE EVERY MORNING AT 345 O'CLOCK IN THE MORNING.COLLECTING THAT TRASH MAKING SERVICE. THE DOWNTOWN IS LOOKING. IT IS REPRESENTATIVE TYPE OF CITY THAT WE WANT TO HAVE. IT WAS VERY EASY FOR BUSINESS OWNER TO JUST TAKE WHATEVER THEY HAD PUT IT OUT. SOMEBODY WAS GOING TO DEAL WITH IT, EITHER BETWEEN WASTE CONNECTIONS OR BETWEEN OUR STAFF. WELL THEY'RE THEY'RE BUILD, AND THAT'S WHY, FROM MY PERSPECTIVE, I CERTAINLY DON'T MIND. TONY I'M UNCOMFORTABLE JUST HAVING A BUSINESS OWNER FROM THE DOWNTOWN TOMORROW OR OR EVEN ON JULY ONE WHO MAYBE. YOU'RE NO FAULT OF THEIR OWN.
MISEDUCATION DOESN'T UNDERSTAND THAT THEY NEED TO BE PAYING FOR SERVICE HAS NOT PAID A BILL.
SOME OF IT. THEY MADE ME THINK THEY'RE GETTING A DEAL. THAT'S PROBABLY GOING ON AS WELL. I THINK THERE'S A MULTITUDE OF FACTORS IN THE DOWNTOWN THAT IS DIFFERENT FROM YOUR AVERAGE RESIDENTIAL OR COMMERCIAL CUSTOMER. IT'S KIND OF SURPRISING BECAUSE YOU COULDN'T THINK THAT EVERYBODY WOULD HAVE. EITHER AN AGREEMENT OR OR SOME SORT OF THING THAT BASICALLY SAYS I'LL TAKE CARE OF MY OWN TRASH. I DON'T WANT TO PAY A DIME TO THE CITY AND I'LL TAKE CARE OF IT. WERE. YES I WILL. I WILL USE YOUR SERVICES, AND I AGREED TO PAY THIS BILL ME ON A QUARTERLY OR MONTHLY. OR HOWEVER IT'S DONE, SO THERE'S NO AGREEMENT LIKE THAT RIGHT NOW. THAT THAT IS CORRECT. I THINK THE CITY AND WASTE CONNECTIONS HAVE MADE IT VERY EASY FOR A DOWNTOWN BUSINESS TO HAVE THEIR TRASH REMOVED. CAUSE I WOULD THINK. RESTAURANTS ESPECIALLY E MEAN THOSE ARE GONNA BE THE PROBABLY THE BIGGER. GENERATORS, GENERATOR AND. HAVE THE CAUSED ALMOST ON A DAILY OR AT LEAST EVERY TWO DAYS GETTING HOLD OFF. WELL, THE DOWNTOWN IS SERVICED, AND THAT'S WHY FROM WASTE CONNECTIONS PERSPECTIVE.
CERTAINLY YOU KNOW, MY GOAL HERE IS TO GET IN REPRESENTS WHAT IS BEST FOR THE CITY. THE BUSINESSES, YOU KNOW, UNEMPLOYED HERE, BUT FROM AND ALL THE CONVERSATIONS THAT I HAD WITH WASTE CONNECTIONS. DOWNTOWN IS THE ONE WHERE I CERTAINLY BECAME THE MOST EDUCATED. WELL, THEY'VE REALLY BEEN DOING THIS FOR QUITE A WHILE AT A LOSS BECAUSE THEY HAVE RESPONDED FOR US WITH HATE. TO DOWNTOWN LOOKING GOOD. THEY HAVE, AND I CERTAINLY WOULD BE REMISS IF I DIDN'T SAY THAT OUR STAFF AS WELL. ERIC HOPES AND HIS STAFF AND SOLID WASTE. EVERY DAY. THERE IS 2 TO 3 PEOPLE THAT ARE IN THE DOWNTOWN. ANYTHING THAT IS EITHER MISSED OR JUST BECAUSE OF THE VOLUME THAT'S DOWNTOWN. THEY'RE DOING A GREAT JOB. IF YOU RECALL JUST BEFORE COVE IT AT LEAST AT LEAST IN MY MIND OF THE NEARLY FOUR YEARS THAT I'VE BEEN HERE. WAS THE FIRST TIME WHERE WE ACTUALLY HAD A RESIDENT COMMON SAY, HEY, WHAT'S GOING ON IN THE DOWNTOWN? THERE'S A LOT OF THERE'S A LOT OF TRASH THAT'S DOWN THERE AND
[00:20:04]
IN PART, I THINK IT'S DUE TO THE SUCCESS OF THE DOWNTOWN. IT'S BEEN GROWING. IT'S HARD TO KEEP UP WITH THAT. WE INCREASE THE SERVICE LEVELS IN THE DOWNTOWN FROM FIVE DAYS A WEEK.SIX DAYS THAT WE QUITE A WHILE AGO. SO THE DOWNTOWN THIS SERVICE DAILY DAILY, SO WHETHER YOU'RE A BUSINESS OWNER THAT IS IN THE LOW, MODERATE OR HIGH. WASTE CONNECTIONS IS NOT SAYING SIMILAR TO HONOR ON RESIDENTIAL BASIS. ALL RIGHT, THIS IS THE THIS IS THE GARBAGE FOR 123 MAIN STREET, OR 123, WHATEVER. AS A RESIDENT, THE HOME. AND THEN THIS IS CLEARLY THE ONE FOR THE NEXT ONE. IT'S A WHOLE BUNCH OF CANS AND A WHOLE BUNCH OF RECYCLING THAT IS DOWN THERE, AND IT'S JUST ALL COLLECTED ON THE DAVID FACES. WE DON'T HAVE. KNOWING THAT MAYBE A RESTAURANT WOULD HAVE FAR MORE THAN LET'S SAY LITTLE MONKEY BUSINESS STORY TOGETHER GUY THAT WAS IN HERE. I WOULD DO IT. WOULD THEY BE CHARGED DIFFERENT BECAUSE OF THE AMOUNTS SO IN THEORY, THE THEORY? YES BUT THEY COULD BE MAYBE, BUT EVEN IN THAT, EVEN IN THAT CASE UNDER UNDER OUR CURRENT AGREEMENT WHERE WE'RE AT NOW IN IF YOU ARE A RESTAURANT OWNER. FULL SCALE EYES, MUCH TRASHING A FAULTY GROWN JUST BECAUSE THAT'S THE BUSINESS THAT YOU'RE AND YOU'RE PAYING $109 A MONTH FOR THAT SERVICE. NOW IF YOU NEED MOM RIGHT NOW, YES. SO THAT'S WHY WHEN WHAT I YOU KNOW, WENT OVER THE SLIDES BEFORE ON WHAT STAFF IS PROPOSING THE INCREASES TO BE. NOW, IF I'M THAT BUSINESS OWNER AND I'M I'M PAYING 119 YEAR IF I'M PAYING THAT IT HAS PROPOSED TO GO TO 5 83 49. THAT'S A BIG JUMP. IT'S IN CONTEXT OF WHAT NOW, IF MY OPINION IF I'M IF I'M ALSO A FULL SCALE RESTAURANT OWNER.
IT'S NOT IN THE DOWNTOWN. I HAVE A VERY SIMILAR TYPE SERVICE, AND I'M MORE BETWEEN SIX AND $700. THAT EVIL IS WELL, SO THERE'S. THERE'S MANY FACTORS. IN MY OPINION OF THE DOWNTOWN, WHICH IS MY STAFF IS RECOMMENDING THAT WE TAKE SOME TIME AND REALLY MAKE SURE THAT PEOPLE ARE EDUCATED. UNDERSTAND WHAT IS BEING PROPOSED. NOT INFALLIBLE PHYSICIANS WERE MISSING. WE WANT TO GIVE THE BUSINESS IS AN OPPORTUNITY TO SUBMIT THAT TO THE CITY AND ULTIMATELY HAVE STAFF BRING THAT BACK BEFORE THE CITY COUNCIL. COURSE OUT OUTSIDE DOWNTOWN. THEY'RE USING. A DUMPSTER RECEPTACLE JERK. THE THING HERE IT'S HAND COLLECTED.
CORRECT, SO IT'S ACTUALLY THERE. THIS IS STILL LESS THAN. EVERYWHERE ELSE, AND IT'S VERY LABOR. VERY HIGH, INTENSE. LABOR PERSPECTIVE LABORING FLAVOR AT BEST. STEVE SO DRESSES JUST SUMMARIZE IN MY MIND. THINGS HERE. ONE. IS THERE SOME AMOUNT OF MONEY THAT'S MEAN. DOWNTOWN BUSINESSES, CORRECT WHATEVER THAT AMOUNT IS. THERE'S A HUGE GAP. WERE BANGING WHAT THEY QUOTE UNQUOTE WOULD BE FOUND ELSEWHERE IN TOWN. THREE WERE PAYING $100,000 OR MORE IN SALARIES OF THE YEAR TO CLEAN UP DOWNTOWN. ON TOP. CORRECT.
IT'S ONE OF THOSE THINGS. YOU SAY IT LIKE THAT. IT DOESN'T SOUND GOOD, SO I'LL BE LONG GONE. BUT, YOU KNOW, I THINK IT BE GREAT TO KNOW. DON'T KNOW WHERE YOU ARE. PUBLICIZES SPREADSHEET. WHAT'S BEING COLLECTED. NOW? HERE'S WHAT'S GOING TO BE ELECTED, SIR. AND HERE'S WHAT WE MIGHT SAY. IF I COULD JUST ADD THAT ONE OF THE OTHER FROM A PUBLIC POLICY QUESTION STANDPOINT. ONE OF THE CHALLENGES IS, YOU KNOW, YOU MAY DECIDE IS THE CITY COUNCIL, THE COUNCIL MAY SAY. WE WANT TO TELL YOU. WE WANT TO SUBSIDIZE THE DOWNTOWN BUSINESS. WHATEVER REASON, THAT'S A DECISION YOU HAVE TO MAKE. BUT BEFORE THIS, I PROMISE YOU YOU DIDN'T KNOW THAT YOU ARE SUBSIDIZING AT THIS LEVEL AND IN HIS UNEVENLY AS IT HAS BEEN, SOME FOLKS ARE PAYING ANYTHING SURE HAD TO THE GARBAGE JUST MYSTERIOUSLY GOT PICKED UP. IN WAYS CONNECTIONS HAS BEEN DOING IT, AND THEY HAVE BEEN COLLECTING REVENUE FOR THAT. YOU CAN'T SUSTAIN THAT INDEFINITELY UNLESS YOU HAVE A. ASSERTIVE POLICY IS A BODY IS A BODY. THERE IS A CITY THAT THIS IS WHAT WE'RE GOING TO DO, BUT WE NEED TO TEASE THIS OUT. I THINK WE NEED TO BRING THIS TO THE FOLKS AND MAIN STREET AND THE OTHERS. I DON'T THINK ALL OF THEM ARE AWARE OF THIS. SOME OF THEM HAVE BEEN PAYING AND THEY'RE GOING TO SAY WAIT A SECOND.
I'VE BEEN PAYING. WHAT DO YOU MEAN BY THESE OTHER FOLKS HAVE HIM IN PAIN, SO WE HAVE TO ADDRESS THIS ISSUE. IT MAY BE A PHASE IN PERIOD OR WHATEVER. WE'RE SENSITIVE TO THAT, AND THAT'S WHAT STEVE'S BEEN TALKING ABOUT. AND AGAIN. IT MAY BE A DECISION OF THE COUNCIL TO SAY WE THINK FOR WHATEVER INTERESTING REASONS FOR WHATEVER JUSTIFIED REASONS, THE DOWNTOWN MERCHANTS. AND GET A SUBSIDIZED RATE. BUT WE HAVE TO ARRIVE WHAT THAT IS. AND WHAT IS FAIR. ALSO I KNOW THAT THERE'S ONE BUSINESS DOWN THERE THAT FOR SIX MONTHS IS NOT OPEN. THEY WOULDN'T REALLY HAVE ANY. SO WE NEED THE KIND OF CHURCH COUNT FOR THAT I WOULD NORMALLY DO THAT WITH YOU. THEY SAID, YEAH, WE'LL PAY FROM HERE TO HERE BECAUSE THIS IS WHEN WE'RE OPEN AND. REALLY DON'T NEED ANY TIME THEREAFTER. THEY'RE NOT OPEN. SO WE'VE SEEN.
[00:25:06]
RELATIONS FOR THAT YOU HAVEN'T AGAIN REMEMBER THAT THE RELATIONSHIP IS BETWEEN IN THEORY BETWEEN THE BUSINESS AND THE WASTE HAULER, SO WASTE HAULERS DEAL WITH BUSINESSES LIKE THAT. FROM TIME TO TIME. THEY PROBABLY HAVE SOME SORT OF AN ARRANGEMENT. BUT RIGHT? DON'T KNOW WHAT THE CASE IS. IN THIS INSTANCE MAYBE THEY'VE BEEN PAYING. MAYBE THEY HAVEN'T.WE'LL FIND OUT. YOU KNOW, MAYBE YOU'RE JUST TOO CONSIDERED A LOW BECAUSE I COULD. AND THAT'S $63 NOT GONNA PUT ANY BUSINESS OUT OF YOUR EYES. THE COUNCIL WAS TALKING. MR HAS MADE A GOOD POINT. I WANNA MAKE SURE THAT THE COUNCIL UNDERSTANDS SPECIFIC REALLY ALL THESE, BUT.
PRIMARILY ON THE COMMERCIAL IN THE DOWNTOWN. WE TALKED ABOUT 25% INCREASED 10% 10% AND 5% WHAT IS IN THE FJORD IN ITS RIGHT NOW IS 10% FOR THIS YEAR AND IT LAYS OUT THOUGH IN THE.
THE FEE ORDINANCE. THAT IS THE MAXIMUM OUT THAT A BUSINESS WOULD BE CHARGED IN THIS IN THIS FIRST YEAR, BUT IS PART OF THE AMENDMENT WHAT IT DOES LAYOUT AND WHAT IT DOES COMMIT THE COUNCIL, TOO. IS MAKING SURE THAT THE WASTE CONNECTIONS PORTION OF THE BILL SO PRIMARILY FOR COMMERCIAL BILL, THERE IS THE PORTION THAT WASTE CONNECTIONS MADE FOR WHATEVER SERVICE IT IS PICKING UP A ROLL OFF. TOWN PACKED OR WHATEVER THAT WOULD BE. THEN THERE'S DELIVERY PORTION, AND THERE'S THE DISPOSAL FEE PORTION OF IT AND THAT HAS PASSED THROUGH. IT IS COLLECTED BY WASTE CONNECTIONS, BUT THE CITY PAYS THAT FEAT. SO AND THAT HAS PASSED BACK ONTO THE CITY. SO I DO WANT TO MAKE SURE THAT THE COUNCIL WAS AWARE THAT COME NEXT YEAR. YOU'RE TWO OF THE AGREEMENT IN THE NEXT YEAR AFTER THAT COUNCIL HAVE SOME OPTIONS THAT THEY CAN CONSIDER THEY CAN PASS THAT 10% ON. TO THE CUSTOMER IN YEAR TWO, AND THEN THAT ADDITIONAL 5% IN YOUR THREE OR ANYWHERE IN BETWEEN, IF WHATEVER REASON, POINT TIME THE COUNCIL SAYS, YOU KNOW WHAT WE HAVE COMMITTED THAT WASTE CONNECTIONS WILL MAKE 10% MORE ON THEIR PORTION OF THE BUILDING THEY'RE MAKING NOW IN YEAR TWO. THEN IN YOUR THREE MAKE 5% MORE COUNSEL AT THAT POINT IN TIME CAN MAKE THOSE DETERMINATIONS ON IF THEY WANT 1% 2% OFF ALL 10% OR ANYWHERE IN BETWEEN. ULTIMATELY AUTHORIZED ON PASSED ON TO THE END USER OF CONSUMER. SAME SAME IN THE DOWNTOWN AREA. THE 63 30, THE 2 79 84, THE 5 83 49.
THE MAXIMUM AMOUNT THAT COULD BE CHARGED TO EACH OF THOSE RESPECTIVE BUSINESSES IN THOSE CATEGORIES SO THAT THE COUNCIL WILL CERTAINLY ASK HIM FLEXIBILITY. AND ULTIMATELY WHAT THEY WANT. THE BUSINESS IS TO BE CHARGED. BUT JUST KNOW THAT IF IT'S ANYTHING SHORT OF WHAT THOSE RATES ARE, THE CITY WOULD NOT SHALL BE SUBSIDIZING ALL OR PART OF THAT INCREASE.
BUT AGAIN THAT THAT THAT'S A CONVERSATION THAT A FUTURE. COUNCIL CAN HAVE AND CERTAINLY WHEN, WHEN THIS ORDINANCE IS BROUGHT BACK NEXT YEAR, WE'LL HAVE SCENARIOS WITH WHAT THE MATH IS. SO THE COUNCIL IS AWARE OF WHAT THOSE MAYBE IF IT'S SHORT OF PASSING THE FULL INCREASING THANKS, MARK. OKAY? UM, THERE IS HIS INCREASE OF 25% RIGHT OUT OVER THREE YEARS.
500% INCREASE RIGHT? THAT'S WHAT I'M QUESTIONS CAN BE THAT IS. OKAY, SO YOU'RE TALKING ABOUT COMMERCIAL S SO VERY SPECIFICALLY IN OUR ORDINANCE. DOWNTOWN AND THAT'S WHY, IN MY OPINION, YOU HAVEN'T SEEN IT. THIS IS DOWNTOWN IS NOT CORRECT, AND IT'S LITERALLY A DIFFERENT, SUBCATEGORY. YEAH. TRYING TO SAY IN DIFFERENT WAYS. STEVEN PLEASE DONE A GREAT JOB ON THIS FOR TWO YEARS. BUT ON THE COMMERCIAL. THE RECOMMENDATION IS THAT WE CHANGE THE CONTRACT WITH WASTE CONNECTIONS, AND IT WILL GO UP FOR THE PORTION THAT IT IS COLLECTING. 10% 10% 5% FOR THE CUSTOMERS. DOWNTOWN OTHER COMMERCIAL CUSTOMERS THE ORDINANCE TONIGHT WILL HAVE A 10% INCREASE THAT GOES IN EFFECT ON JULY ONE. AND NEXT YEAR OR ANY TIME IN BETWEEN.
JULY ONE, AND ANY TIME YOU WANT TO CONSIDER IT YOU CAN. SET THAT CUSTOMER RATE TO TRY TO CAPTURE THE INCREASES THAT YOU'RE GONNA PAY WASTE CONNECTIONS REGARDLESS. SO TH IS BEING SET BY THE CONTRACT. REMEMBER THE CUSTOMERS? COMMERCIAL CUSTOMERS ARE ALWAYS GONNA BE SUBJECT TO WHAT YOU GUYS SET FOR THEM. YOU COULD. THEORETICALLY I'M NOT RECOMMENDING THIS. YOU COULD SET A FEE FOR THE COMMERCIAL CUSTOMERS THAT MADE YOU. FARM OR THAN THE 10% INCREASE, THEN THAT YOU'RE GOING TO PAY WASTE CONNECTIONS. IN OTHER WORDS, YOU COULD ACTUALLY. MAKE MORE MONEY OFF COMMERCIAL CUSTOMERS IF YOU CHOSE TO I'M RECOMMENDING THAT, BUT I'M SAYING THAT BE FOR THE WASTE CONNECTIONS. PICKUP. AND DISPOSAL IS BEING SET. IN PLACE FOR THREE YEARS. SO THE SO WE'RE NOT SUBSIDIZED. SO IF IT'S 25 WILL GO OVER. THAT'S THAT'S OUR AGREEMENT WITH WASTE CONNECTION. CORRECT SO WE'RE
[00:30:04]
NOT SUBSIDIZING THE 15% SO HE RAISED 10% WE'RE NOT SUBSIDIZING 5TH 15. WE'RE NOT SUBSIDIZING THE 15. BECAUSE THAT'S ON LEE. WHAT THEY'RE CHARGING. THAT'S RIGHT. THEY'RE GONNA THEY'RE GONNA DO ALL THOSE FEE INCREASES. WE'RE JUST SAYING THAT THEY CAN, BUT YOU'RE REALLY YOU'RE ONLY COMMITTING AND YOU'RE ONLY GOING TO BE PUTTING IN PLACE A 10% INCREASE FOR COMMERCIAL CUSTOMERS. YOU GET TO CONTROL WHAT THEY BUILD YOUR CUSTOMERS.AND THEN THE NEXT YEAR IT WILL AUTOMATICALLY GO UP. WE'LL HAVE THREE AGAIN. WELL WELL FOR THE CUSTOMERS, BUT WE WILL PAY WITH CONNECTIONS. 10. SO THEN YOU'LL HAVE A DECISION WHETHER YOU WANT TO PASS THAT NEXT 10% OFF. THAT MAKES SENSE IF YOU DON'T PASS AN INCREASE. DON'T PASS IT ON AND YOU ARE SUBSIDIZING RIGHT? SO THE SEVEN OH FIVE. WHAT DOES WHERE DOES THE LOVE SOME COME FROM? SEVEN. OH FIVE. STEVE MENTIONED IS THE FIRST PART OF THIS YEAR UNTIL NOW.
THAT WAY, EVEN NEGOTIATED, TOO. RESET WASTE CONNECTIONS JANUARY ONE, BUT WE HAVEN'T CHANGED.
PAID HIM ANY MORE MONEY BECAUSE YOU HAVEN'T AGREED TO CHANGE THEIR CONTRACT COLLECTED MORE MONEY. WE HAVE BEEN COLLECTING WHAT WE WAY COLLECT. SO THIS IS A TRUE UP. SO WHERE DOES THAT MONEY COME FROM? WHAT ACCOUNT? DOES THAT JUST OURSELVES? ALWAYS OKAY. IT IS COMPLICATED AND I I'LL SLOW DOWN TOO. IF YOU NEED ME TO WITH THE DOWNTOWN, AS STEVE SAID. WILL BE STUDIED DISCUSSED. BUSINESSES AND STAFF. THE CHARGE TO WASTE CONNECTIONS. IS A NUMBER BETWEEN CURRENT. AND THAT BIG NUMBER ON THE RIGHT. IN THE ACTUAL CONTRACT, THEIR FEE WILL GO UP. BASED ON THE COST TO THEM. BUT THEN LATER ON, YOU GUYS WOULD GET TO REVIEW WHAT YOU WANNA CHARGE DOWNTOWN. DIFFERENT. OKAY, GREAT. THANK YOU, SIR. S SO WE TALKED ABOUT THE RESIDENTIAL AND COMMERCIAL. WE TALKED ABOUT THE DOWNTOWN AND THEN THE LAST PORTION OF THE PRESENTATION IS REALLY FROM THE STAFF PERSPECTIVE. JUST WANT TO MAKE SURE THE COUNCIL UNDERSTANDS WHY WE THINK THAT. THIS ACTUALLY MAKES QUITE A BIT OF SENSE. HAVING THIS AMENDMENT THIS CHANGE NOW TO GET US THROUGH THROUGH THE END DATE OF OUR CURRENT AGREEMENT, WHICH IS SEPTEMBER 30TH 2024. AS THE COUNCIL KNOWS EARLIER THIS YEAR IN DECEMBER OF 2020, YOU AUTHORIZED A SOLID WASTE AND REFUSE STUDY. WE TALKED ABOUT RECYCLING HERE. WE TALKED ABOUT SOME DIFFERENCES. WE DIDN'T REALLY TALK A LOT ABOUT, BUT THERE'S A LOT OF NEW TECHNOLOGY THAT IS OUT THERE FOR BOTH RECYCLING. AND REFUSE COLLECTION. DIFFERENT WAYS TO REUSE. REDUCE ON RECYCLE THINGS OF THAT NATURE, SO WE THINK THAT BY THE TIME THAT STUDY IS DONE, WHICH SHOULD BE ABOUT THE FIRST PART OF 2022 1ST QUARTER. OUTSIDE OF OUR CONTRACT WITH WEIGHTS, CONNECTIONS. WE THINK THAT STAFF IS GONNA HAVE HOPEFULLY SOME SOME NEW FRESH IDEAS FOR THE COUNCIL TO CONSIDER ABOUT WHAT MAKES SENSE TO TAKE US INTO THE NEXT 10 2030 YEARS AS A COMMUNITY. REFUSE AND RECYCLING AND THAT ACTUALLY, TIME'S UP PRETTY WELL TO HAVE THAT INFORMATION, SAY. THIS IS THIS IS WHAT WE WOULD LIKE THE CITY'S REFUSE AND RECYCLING PROGRAM TO LOOK AT AND THEN IN THE THIRD QUARTER OF 2023 ABOUT A YEAR OUT FROM WHEN OUR EXISTING CONTRACT WITH WEIGHTS, CONNECTIONS THAT WE DO. WE FORMULATED RFP OR AN R F. Q.
WE SEND IT OUT, AND WE GET A LOT OF HOPEFULLY COMPETITIVE BIDS FROM HOPEFULLY WASTE CONNECTIONS, BUT ANY OTHER CARRIERS OF INTERESTED IN MAYBE WORKING WITH MCKINNEY. IT WOULD BE BASED ON WHATEVER THAT POTENTIAL NEW DESIGN IS THE NEW TECHNOLOGIES POTENTIALLY PARTNERSHIPS FOR RECYCLING SOMETHING DIFFERENT, QUITE HONESTLY THAN WHAT WE'RE DOING NOW BECAUSE WE'RE WORKING OFF FAIRLY OLD MODEL IN TERMS OF RECYCLING. SO THAT TIME'S UP PRETTY WELL THAT BY THE TIME OUR EXISTING AGREEMENT WITH WASTE CONNECTIONS IS DONE, WE WOULD HAVE THAT RFP ON THE STREET AND HOPEFULLY SOME VERY STRONG BIDS BACK IN ON WHAT THAT NEW MODEL MAY LOOK LIKE FOR REFUSE AND RECYCLING. WITHOUT AN ANSWER ANY QUESTIONS? WELL DONE. I THINK THIS IS REALLY GOOD. THANK YOU. SO. THAT IS THE FIRST PORTION AND I'LL TURN IT OVER TO KEN CARLY, OUR DIRECTOR OF THE AIRPORT TO GO OVER SOME PROPOSED SPECIAL EVENT FEES THAT WE'D LIKE TO SEE AT THE AIRPORT. AFTERNOON CAN CARLY AIRPORT DIRECTOR, I'VE GOT A TOTAL OF ONE SLIDE FOR YOU. UM YEAH. NO PICTURES. SORRY I'LL MAKE A NOTE AT THAT NEXT TIME. UM. FOR US THAT WE REALLY JUST KIND OF USING THIS OPPORTUNITY TO MAKE AN ADJUSTMENT TO THE AIRPORT RATES AND CHARGES WHICH ARE ALSO SENT BY ORDINANCE.
WE'RE PROPOSING TO ADD A KIND OF A SPECIAL EVENT FEES TO OUR RATES AND CHARGES, AND IT'S A
[00:35:02]
COMMON PRACTICE FOR FIXED BASED OPERATIONS TO DO THAT. UM. WE DO INCUR ADDITIONAL COSTS, AND WE PROVIDE THOSE SERVICES, MAINLY AN OVERHEAD AND SOME EQUIPMENT REYNOLDS JUST TO HANDLE EXTRA DEMAND. UM PRIMARILY THINGS LIKE WE'RE, FOR EXAMPLE, FOR THE. BYRON NELSON THAT WE HAVE COMING UP NEXT WEEK. WE'VE RENTED AN EXTRA FUEL TRUCKS AND EXTRA GROUND POWER UNITS. TUGS COUPLE OF SHUTTLE VANS AND A COUPLE OF CREW CARS. I WANT TO EMPHASIZE THAT THESE SPEEDS REALLY ARE JUST FOR TRANSIENT OPERATORS COMING IN TO TOWN FOR AN EVENT.THIS DOESN'T IMPACT OUR BASE CUSTOMERS AND TENANTS IN ANY WAY. UM. IT'S ONLY FOR THE DURATION OF THE EVENT. AND IT'S NOT REALLY IMPACTING THE FUEL PRESSING SO WHICH IS REALLY PROBABLY THE HIGHEST. REVENUE STREAM THAT WE HAVE AT THE AIRPORT AND JUST THE LAST THE LAST BULLET POINT. THERE ARE THE LAST. OF INFORMATION'S JUST FOR AN EXAMPLE. WE ARE EXPECTING ABOUT AN ADDITIONAL 15 TO 20 AIRCRAFT PER DAY FOR THE EVENT COMING UP NEXT WEEK, AND WE'RE LOOKING AT JUST SHY OF ABOUT $20,000 IN ADDITIONAL COSTS FOR EQUIPMENT. REYNOLDS.
QUESTIONS DO DO WE HAVE A RED CAR FACILITY OUT THERE? DO WE HAVE GO? REYNOLDS ON SIDE? HAVE THEY MADE SPECIAL ARRANGEMENTS TO HAVE EXTRA CARS. YEAH, THEY ARE. THEY'RE TAKING RESERVATIONS AND FILLING THOSE AND I THINK THEY HAVE EXTRA VEHICLES IN THE SYSTEM THAT THEY'RE PREPARED TO BRING TO MCKINNEY AND I THINK THEY TYPICALLY THEY STAGED THREE OR FOUR THERE AT ANY GIVEN TIME, AND THAT'S GOING UP NEXT WEEK. CAUSE THAT THAT'LL MAKE A BREAKING AN EXPERIENCE OF SOMEBODY HAVING A CAR. YEAH. YEAH. AND MOST OF THOSE AIR ARE DONE VERY, VERY RARELY. DOES SOMEONE SHOW UP WITHOUT A PRIOR RESERVATION? BUT, YEAH, YOU'RE RIGHT. ACTUALLY, THEY THEY HAVE. PROVIDED CONSISTENTLY GOOD SERVICE FORCE AND GUN. VERY GOOD RECOMMENDATIONS. THAT'S MY SLIDE. I'LL ANSWER ANY QUESTIONS YOU HAVE. YEAH, I THINK BY INFERENCE THAT EMPLOYEES OVER TIME THAT YOU LIST HERE. USED TO OPERATE THE EXTRA QUICK. YEAH, AND I THINK YOU KNOW, WE PROBABLY HAVE, UM, WE WERE JUST SCREAMING. IT'S KIND OF AN ALL HANDS ON DECK. WE FOR US, SO NORMALLY WHERE SOMEWHERE MIGHT WORK A EIGHT HOUR SHIFT, THEY MAY BE WORKING A 12 HOUR SHIFTS OF FOUR HOURS THAT WOULD BE INCURRED IN TIME.
SO WITH THE EXTRA EXPENDITURES OVER TIME, THINGS LIKE THAT. WE STILL THINK THIS IS GONNA BE A VERY, VERY PROFITABLE THING FOR THE AIRPORT WITH THIS EVENT. YEAH ABSOLUTELY. I THINK YOU KNOW THIS. THE FEES THAT WE'RE LOOKING AT ARE THE INCREASES ARE PRETTY NOMINAL. I MEAN, BUT THEY'RE ALSO A RELATIVELY HIGH PERCENT. FOR EXAMPLE, GROUND POWER UNITS A $50 FEE WE'RE PROPOSING AND GO TO 75 FOR AN EVENT. IT'S NOT A BIG INCREASE, BUT IT'S ALSO A 50% INCREASE.
WHERE WE'RE GOING TO MAKE THE MONEY IS ON THE FUEL SALES IF WE'RE IF WE HAVE ANOTHER 100 TO 200 AIRCRAFT IN THERE NEXT WEEK. THAT'S WHERE THE REVENUE IS REALLY GOING TO OFFSET THE COST. GONNA BE TENS OF THOUSANDS OF MORE. GALLONS OF FUEL. YEAH. ACTUALLY THIS IS BE A GOOD BASELINE YEAR FOR US. I MEAN, WE REALLY. DON'T KNOW EXACTLY WHAT TO EXPECT. BUT I THINK THIS WHOLE REALLY EDUCATE US ON HOW TO. PREPARE FOR FUTURE YEARS WHAT TO RENT AND WHERE TO SPEND OUR MONEY. BUT. I MEAN, I'M I GUESS NOT KNOWING RIGHT NOW LOOKING AT THAT. THAT NUMBER OF AIRCRAFT AND TYPE OF AIRCRAFT. WE'RE LIKELY TO SEE. WE'RE PROBABLY LOOKING ANYWHERE FROM 25 TO 50 60,000 GALLONS OF FUEL ADDITIONAL THAT IN THAT WEEK. RIGHT, BECAUSE BECAUSE MY THOUGHTS IS THAT YOU KNOW, I WOULD IMAGINE. I MEAN, SOME OF THE WEALTHIER PEOPLE ARE GONNA COME IN THAT AND THEIR EXPERIENCE AT OUR AIRPORT IS GOING TO BE THE. A DOORWAY TO THEIR WHOLE EXPERIENCE. YEAH, ABSOLUTELY. MAKE SURE THAT THAT IS A GREAT EXPERIENCE, AND THEY SAY HAVE NOTHING BUT GOOD THINGS TO SAY ABOUT MCKINNEY, AND IT STARTS WITH OUR AIRPORT, SO WE APPRECIATE THE EFFORTS AND. ALL HANDS ON DECK MENTALITY. YEAH, I'M SORRY. I MEAN, PEOPLE THAT WILL COME HERE TO WATCH AND THE NEWS CREWS. THINGS LIKE THAT. I DON'T KNOW. YEAH. NEWSCASTERS. LOOKING FORWARD TO SEE WHAT IT ALL DOES. YES. OKAY. THANK YOU, KEN. RIGHT? THE REVIEW THE REGULAR AGENDAS OR ANY QUESTIONS ANYONE HAS ON THE
[DISCUSS REGULAR MEETING AGENDA ITEMS for the City Council Regular Meeting to be held Tuesday, May 4, 2021 at 6:00p.m. ]
REGULAR AGENDA ITEMS. ONE ON 365. EVERYBODY'S GONNA BE HAPPY TO GET THE LIGHTS AND THEY'RE[00:40:03]
ON AUBURN HILLS. LET ME TELL YOU THAT. YEAH, EMAILS ON THAT. BIG. THAT'S REALLY NICE TO BE ABLE TO GET THE STOP LIGHT IN THERE TO HELP THOSE PEOPLE. IT'S A GOOD IDEA TO DECREASE THE ADRENALINE LEVEL REQUIRED TO ENTER 3 80 FROM AUBURN HILLS. YEAH. WE APPRECIATE EVERYBODY'S PATIENTS ON THAT, SO, BUT IT Z NOT EASY. IT'S NOT OUR CALL. THEY ACTUALLY DO A LIKE THEY'RE SO. IT'S A PROCESS. APPRECIATE THEIR PATIENTS. YEAH. RIGHT? AND COUNCIL LIAISON. UPDATES. WENT NO. THEN WE WILL MOVE INTO EXECUTIVE SESSION IN ACCORDANCE[EXECUTIVE SESSION]
WITH TEXAS GOVERNMENT CODE SECTION 5517 TO DELIBERATIONS ABOUT REAL PROPERTY MUNICIPAL FACILITIES WILL BE NO ACTION.* This transcript was compiled from uncorrected Closed Captioning.