HomeMy WebLinkAbout10/20/93TAPE #1142
UNAPPROVED DRAFT
CITY COUNCIL MEETING MINUTES
OCTOBER 20, 1993
The regular meeting of the City Council of the City of
Bremerton was called to order in the City Council Chambers,
239 4th Street, Bremerton, Washington, Wednesday, October 20,
1993, at 5:30 P.M., with Council President Eileen Fitz
presiding. Council members present were Richard Neville, Lynn
Horton, Hank Waibel, C.R. "Tiny" Collins, Morrie Dawkins, Russ
Johnson, Lon Overson, and Al Colvin. Also present were City
Attorney Ian Sievers and Acting City Clerk Rich Hanna.
The meeting opened with the Pledge of Allegiance led by
Council President Fitz and Invocation given by Rod Jones of
Emmanuel Apostolic Church.
president Fitz announced Council has canceled the Study
Session scheduled for November 1 due to the Budget Review
process that will take up most of the month of November.
Council will be setting a Study Session prior to the budgeting
in regard to the Utilities and finances of the Utilities.
CON8ENT AGENUA
A. Minutes of Meeting -- October 6, 1993 #AB93-200
#0040
M/S/C/U(Waibel/Dawkins) to approve the Consent Agenda as
presented.
CLAIMS/WARRANT REGISTERS
Vouchers audited and certified by the auditing officer as
required by RCW 42.24.080, and those expense reimbursement
claims certified as required by RCW 42.24.090, have been
recorded on a listing that had been made available to the
Council.
#0060
M/S/C/U(Colvin/Horton) October 20, 1993, the Council does
approve for payment those vouchers included and further
described as follows: 170276, 170277, 170296 through 170447 in
the total amount of $191,543.36; and Regular Payroll for the
period ending October 15, 1993, in the amount of $545,735.39
COUNCIL MEMBER REPORT8
Mr. Colvin announced District # 1 Coalition Meeting is
scheduled for October 28, 7:00 P.M., at the Sheridan Park
Recreation Center. The purpose of the meeting is to explore
both sides of the question concerning changing the form of
City government. He emphasized all citizens are invited to
attend that meeting.
Mr. Waibel wished his wife a very "Happy Anniversary" this
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coming Sunday. And, he wished his daughter Holly, who will be
a teenager on October 21, a Happy Birthday
PUBLIC RECOGNITION
Mayor Louis Mentor announced the Parks Department is
sponsoring a "Splash And Jam" at the Municipal Pool and YMCA
on Saturday, October 23, 7:00 - 10:00 P.M., for 6th through
9th graders. On November 6, 9:00 - 4:00 P.M., a flea-
market/craft sale will take place at the Sheridan Park
Recreation Center in support of the Pendergast Regional Park
fund.
Gordy Byrd, P.O.Box 930, reported the Crossroads Church recent
fund raising event benefitted the A.L.I.V.E Shelter, Bremerton
Foodline and the Byrds Nest. He was pleased to report the
Byrds Nest's portion was $5-600.00. He publicly thanked
Tammy, who worked on the fund raising event, and presented her
with an appreciation plaque for her support and encouragement
to Byrds Nest. As of this date he has collected $15,322.56 for
his shelter for the homeless.
Don Larson, 135 Rainier Avenue, reported he received a letter
from the Radison Hollywood Roosevelt Hotel in California,
stating they are working with Kids For Saving The Earth
International, and they selected his group as one of ten
finalist for an award for kids ages 9-14. A youth has been
selected from Mr. Larson's group, who had assisted in the
Sinclair Inlet clean ups. For being a finalist in this award
designation, the youth will receive a "star" similar to the
Hollywood Star and they are required to write a 250-word essay
on "What Can I Give To Earth This Holiday Season As A Defender
Of The Planet". The winner of that award will receive an all
expense paid trip, including their parents, to Hollywood,
California. He emphasized there are some rewards for cleaning
our beaches.
Glenn Jarstad, 2823 Hefner Avenue, publicly thanked the County
and City Paramedics and the airlift services to Harborview
Hospital. Two of his close friends were involved in a
motorcycle accident and not expected to live. With the
assistance of the paramedics and the helicopter airlift
service to Harborview Trauma Center, they both have totally
recovered from their injuries. On Tuesday, October 19, another
incident happened involving a young girl being injured on
Sheridan Road and having to be airlifted to Harborview. He
suggested that all of the elected officials from the various
governmental entities in Kitsap County send letters of
accommodations to the Harborview Trauma team. President Fitz
stated in recent weeks she also knows of several children who
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had terrible head injuries from accidents and they too have
recovered due to the great and quick assistance by the airlift
helicopters and the trauma team at Harborview. She supported
Mr. Jarstad's suggestion of writing letter of thanks for the
help that the citizens of Kitsap County receives from their
services.
Robert A. Ackerman, 37 Arsenal Way, thanked the City Street
Department for repairing potholes on Arsenal Way. He was
gravely concerned about building contractors being allowed to
burn natural vegetation openly without any restriction when
people with wood burning stoves or fireplaces are restricted.
He suffers from emphysema and was hospitalized due to "open
burning" in his neighborhood. He felt very strongly that
contractors should be required to haul their debris away and
dispose of it in the landfill rather than burning it on site.
6A - PUGET POWER LINE EASEMENT -- ANDERSON HILL ROAD, #AB93-
201
Puget Power has an existing easement and transmission line on
City property adjacent to Anderson Hill Road. They are
requesting an additional ten (10) feet of width over a length
of 3,960 feet to accommodate adding crossarms to the existing
poles. The additional area required will be 0.9 acres.
Compensation to the City for the additional area will be $700.
Merchantable timber requiring removal will be felled by Puget
Power and left for marketing by the City's forestry staff.
Bill McKinney, Forestry Manager, Public Works Utility, stated
the only revision to what was included in the Agenda Bill was
the fact that an agreement had been reached between the City
and Puget Power that they would be responsible for falling,
removal and marketing the merchantable timber and the City
would then be compensated for the value of the timber. In
this way, the City is removed from the liability of having to
obtain Forest Practice Permits and County road access permits.
Mr. Overson questioned the whereabouts of Eddy Chu, Public
Works and Utilities Director? Mr. McKinney stated he did not
know the whereabouts of Mr. Chu at this time. Mr. Overson
questioned the location of the Anderson Hill property? Mr.
McKinney explained the area is located between Gorst and Port
Orchard. The utility owns approximately 450 acres west of
Anderson Hill Road and this site would be the immediate
eastern boundary of the Utility property. Mr. Overson stated
he asked for that location description so that no one confused
it with the other Anderson Hill Road in the County. He
questioned for clarification that the easement will not impact
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the watershed application for that area? Mr. McKinney assured
him there would be no adverse impact to the watershed.
Public comment - none
Mr. Dawkins stated the Operations Committee reviewed this item
and found it to be necessary, and at no cost to the City.
#0479
M/S/C/U(Dawkins/Colvin) to approve the attached Easement
agreement between the City and Puget Power for the Mayor's
signature.
7A - ORDINANCE NO. 4434 (SECOND READING) ADOPTING RCW
4.66.44.270, PROHIBITING CONSUMPTION OF ALCOHOL BY MINORS,
#AB93-198
Public comment - none.
#0507
M/S/C/U(Waibel/Overson) to pass Ordinance #4434, on second
reading, adopting RCW 66.44,270 relating to minors consuming
alcohol and amending Section 9A.12.010 and repealing Section
9A.12.020 of the Bremerton Municipal Code.
7B - ORDINANCE NO. 4435 (SECOND READING) AMENDING BMC
9A.24.220 REGARDING DANGEROUS WEAPONS, #AB93-199
Robert Ackerman, 3706 Arsenal Way, stated when he received is
permit he was informed that the only place he could carry his
weapon was to and from a firing range. Until the discussion
on this item, he was not aware that he could carry his firearm
into the Council Chambers. He questioned why didn't Council
prohibit firearms and dangerous weapons in any within the City
Hall building instead of just restricting it to court related
facilities?
Gordy Byrd, P.O. Box 930, asked that he receive a copy of this
ordinance so that he could understand where dangerous weapons
and firearms were prohibited.
Mrs. Horton stated the discussion at the previous Council
meeting centered on the fact that Council would like to expand
this ordinance, but unfortunately the State Legislature has
put limitations on what Council can pass locally. Therefore,
Council is simply passing, based on the City Attorney's
advise, what the State Legislature has told us we can pass.
Effort will also be made to relate the City Council's position
on this particular issue to the Legislators in the hope that
some changes can be made.
#0666
M/S/C/U(Horton, Colvin) to pass Ordinance #4435, on second
reading, amending the prohibition of firearms in certain
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places, to include other dangerous weapons and prohibitions of
weapons in school facilities and in all areas connected with
court proceedings and amending Section 9A.24.220 of the
Bremerton Municipal Code.
7C - RESOLUTION NO. 2445, SUPPORT FOR THE WATERFRONT/CENTRAL
BUSINESS DISTRICT IMPLEMENTATION STUDY AND MASTER PLAN, #AB93-
202
At its October 4, 1993 Study Session, the City Council was
provided an information briefing by Community Development
Staff, the Project Team, and supporters for the Waterfront/
Central Business District Revitalization Implementation
Strategy and Master Plan for development. The City Council
was presented with a Resolution of support for the
Revitalization Strategy and Master Plan. Individual letters
of support and resolutions of support from project team
agencies were also presented. The group requested that the
City Council consider action on a similar Resolution of
support for the project.
Carol Dickinson, Development Manager, stated this Resolution
was prepared following two study session reviews by the City
Council and at Council's specific request. Also, on October
4, Council asked staff to make sure they provided an
informational briefing to the Planning Commission. The
briefing of the Planning Commission took place on October 19
and the following Resolution was adopted: "Be it resolved
that the Bremerton Planning Commission, after considering oral
and written testimony and staff report, hereby resolves that
we, as the Planning Commission and representatives of the
Planning Commission, offer support to Carol Dickinson and her
organization in development and planning for the Bremerton
waterfront and encourage them in every possible way. The
Bremerton Planning Commission further resolves to offer
continued support in any way possible so that planning and
development and interaction with outside agencies can continue
so as to help make this project a reality for the City of Bremerton".
#0755
Public comment - none.
M/S/C/U(Neville/Overson) to adopt Resolution No. 2445 in
support of the Waterfront/Central Business District (CBD)
Revitalization Implementation Strategy and Master Plan.
Mr. Waibel pointed out the lack of discussion on this issue
may be construed by some people that there is lack of
interest. Council is very interested in this project and the
adopted resolution speaks to that interest. Much work has
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taken place on this issue over the past 14-15 months and
Council has been supplied information during that process.
7D - RESOLUTION NO. 2446, AUTHORIZING AN INTERFUND LOAN FROM
EOUIPMENT RENTAL FUND TO WASTEWATER OPERATING FUND, #AB93-203
An interfund loan will be necessary to finance the settlement
agreement of the Wastewater Operating Fund until external
financing can be arranged.
Rich Hanna, City Treasurer, pointed out the need to have two
separate motions, the first to approve the Resolution
and second would approve the accompanying Budget Adjust
Request, which reflects implementation of the Resolution.
Mrs. Horton questioned the residual balance in the Equipment
Rental Reserve Fund if this proposal is approved? Mr. Hanna
stated approximately $350,000. Mrs. Horton questioned what
kind of purchases will the City be making in 1994 out of that
fund? Mr. Hanna stated the order of magnitude for all of 1994
will be approximately $200,000.
Mr. Overson passed on a quote from a constituent: "what kind
of miss management is going on in that city that would have us
having to borrow from the little General Fund to support the
Utility"? Mr. Overson did not have an answer and felt the
proposal being presented was inappropriate. He emphasized a
Utility operates on a rate base, there is a budget and you
establish a rate to support that budget. In his opinion,
there should not be an exchange of funds between the two funds
and questioned its legality. He felt strongly that it was
inappropriate for Council to support such a request. He noted
Council needs to address the problems of the Utility within
the Utility and if there is need to borrow funds from the
Utility to run it, then lets borrow funds in the Utility
appropriately funded. President Fitz requested the City
Attorney to inform Council if the proposal is appropriate and
legal? Ian Sievers, City Attorney, stated Council had
participated in loans between its enterprise funds in the
past. As long as the accounting is kept very clear so that
there is a trail and reimbursements are made for the use of
those funds, loans can be made between funds. Mr. Overson
stated he was not aware of a single loan from the General Fund
to the Utility? Mr. Hanna stated by definition an interfund
loan takes places between two different funds. He could
recall several instances in which the Equipment Rental Reserve
Fund has been used to make temporary interfund loans to other
operating funds. He did not recall that any of those
borrowing funds in the past has been among the City's
Utilities. Late last year a similar interfund loan was made
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when the City's long term financial planning "hit a snag" in
October with the 1992 Bond issue and it was necessary at that
time to make a similar short term interfund loan until the
Bond Market could be accessed for long term financing. As the
text of the resolution indicates, that is exactly the case in
this instances...a short term solution until the City can put
in place the long term capital acquisition by going to the
Bond Market and seeking permanent financing. Mr. Overson
stated he did not accept that light hearted attitude. The
Utility fund is rate based and the rate should support the
Utility's requirements and should include a contingency that
costs $30+ million dollars a year to operate the Utility. He
felt it was rather sad that we don't even have a one million
dollar contingency.
Mr. Colvin stated he felt Council should hold a Study Session
on the Utility's financial status.
Mr. Waibel stated as mentioned, Council will hold a Study
Session on the Utilities and he encouraged Council to remember
action taken at this time during that review; and he hoped the
rate payors are aware that in order to have a million dollar
reserve rates will have to increase to cover that reserve.
Council has not approved increases in the past, and this may
be a reminder that maybe we should have and should in the
future. The City had a court action, which it agreed to and
now must respond in a timely fashion.
Mr. Colvin questioned if it was mandatory to make a decision
on this item at this time? Mr. Hanna stated when the City
signed the settlement agreement with the Westhills
Association, they committed to a payment on November 1 and
there is not presently unrestricted cash available in the
Wastewater Fund to make that payment without an interfund
loan.
Roy McInnis, 2711 Maple Street, stated he understands the
problem the City is in, however, he was lost as far as the
amount of income into the Wastewater Utility system. During
the time Council passed the settlement agreement, he did not
recall any discussion that funds would have to be found from
some other source other than the Utility. Some years ago,
when the plant was built, there was a great huge increase in
the collecting for the plant itself and over the years there
should have been some kind of decrease in cost to the
residents of the City. In his mind, there is something
confusing about the funds in the Wastewater Utility and he too
agreed with Mr. Overson that the administration was
continually dipping into the Equipment Rental Fund and passing
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it along. He was also concerned that he had not heard any
discussion about repayment schedule of the proposed interfund
loan. What he was hearing was that the City may be looking
towards heading into a rate increase in order to make up for
this difference. President Fitz stated the money being
approved within this proposal is to go toward the first
payment in settlement of the Westhills Association lawsuit and
was not something that was probably considered happening some
time ago. This action is an interim action until the City
goes out for bonds. She questioned the timing of obtaining
the necessary bonds? Mr. Hanna stated he expected that will
happen in the first quarter of 1994. President Fitz explained
when the bonds are obtained the money will be paid back to the
Equipment Rental Fund. She believed the City had stated all
along that the settlement of the lawsuit would cost money and
that rates would have to go up. She felt it was unfortunate
that probably rates should have been going up in a small
amount over a longer period of time, but that did not happen
and the City must look forward from this point. A rate study
is in the process of being completed and Council will be
holding Study Sessions on that issue. She did not believe
that anyone on the Council said anything different than the
settlement of the lawsuit would cost the City money and that
there would be rate hikes. Mr. Waibel pointed out the
original construction loan is not the only loan the City has
had to take out, other capital loans were necessaryto try and
improve the situation at the wastewater treatment plant.
While interest on the original loan may have gone down, there
were other capital loans added to that cost, which would not
allow the City to reduce rates. He agreed with President Fitz
that the City should have been adding funds all along and
maybe the City would have had a million dollar reserve,
however, that was not done. He emphasized sewer rates will be
increasing, both for payment of the settlement of the lawsuit
and for additional construction necessary at the site
resulting from the lawsuit.
Glenn Jarstad, 2823 Hefner, stated he did not believe there
was anything else to do than what was being proposed in the
interfund loan. He read about the doom of everything the
people in Navy Yard City complained about and blaming the City
for the loss in property values. He questioned if that was
so, why did the County increased his land holdings of 14 lots
that are closer to the sewer plant than most people?
Robert Ackerman, 3706 Arsenal Way, stated he understood the
settlement of the lawsuit, it making a big hole in the City,
and sewer rates will probably go up to pay for the lawsuit.
Recently, he drove by the sewer treatment plant and still
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found the plant was emitting a strong odor and questioned if
there would be another lawsuit over this same issue or was the
City going to correct the problem? He did not think the City
had done much to eliminate the offensive smell at the
treatment plant. He doubted he would ever consider purchasing
a home in the area impacted by the sewer plant smell.
President Fitz explained the City is committed to doing
everything possible to fix the smell at the sewer plant.
Mr. Johnson stated interfund loans are lousy business and they
should always be avoided. It doesn't take long to end up with
a ruined cash flow and budgets that don't reflect the actual
funding situation of the City. However, in this case the City
has approximately one week to come up with one million
dollars, in cash, to make a payment on the Westhills
Association settlement. He doubted the City could go out at
this point to a bank and make such a transaction. He felt Mr.
Overson was right on target in that Council needs to grab
hold of the funding situation in the Utility, putting in some
direction and long range strategy. The smallest problem the
City has to deal with is the Westhills Association suit. The
consent order and the agreement the City signed with
Department Of Ecology (DOE), on the Warren Avenue Basin and
the other major construction projects are much larger going
over a 10 year period. Yes, he believes there will be a big
rate increase in 1994. At this time no one knows how large a
rate increase will come about, but the construction the City
is committed to up to the year 2015 far exceeds the cost to
the sewer plant that has been built to date. There is one
good thing about this proposal and that has to do with the low
interest rates that are available at this time, however, the
bad news is that there is no grant money available.
#1386
M/S/C/(Johnson/Collins) motion to approve Resolution No. 2446
authorizing an interfund loan from the Equipment Rental
Reserve Fund to the Wastewater Operating Fund.
Vote on Motion: In Favor: Neville, Horton, Waibel, Fitz,
Collins, Dawkins, Colvin, Johnson
Opposed: Overson
Motion carried.
#1419
M/S/C/U(Waibel/Neville) to approve Budget Adjustment #93-24.
#1443
M/S/C/U(Johnson/Waibel) that the City Treasurer and Director
Of Utilities be directed to provide a full recommended
financial plan and strategy for the City of Bremerton
Utilities water, wastewater, stormwater, etc., through the
year 2000 no later than November 1 and that the City Council
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address that with those staff members either during the budget
review session or a special session depending on the
information submitted.
Mrs. Horton stated she would like Mr. Chu to present the
information requested in the motion stated above.
7E - ORDINANCE (FIRST READING) LEVYING PROPERTY TAXES FOR
COLLECTION IN 1994, #AB93-204
State law requires that the City levy property taxes through
passage of an ordinance. Figures in the attached ordinance
are based on the preliminary assessment roll. They will be
adjusted upon acceptance of the final assessment roll by the
County.
Rich Hanna, City Treasurer, stated this is an annual event. He
was pleased to report the City's levy rates will decline from
the current to what is proposed in the ordinance. The City's
current M&O levy is at $3.09 per thousand. Because of the
growth in the assessed valuation this year, that levy rate
will decline to $3.02 per thousand in 1994. The Law
Enforcement Levy, which was approved by the voters, was a one
year excess property tax levy and will not be relevied in
1994.
Mr. Johnson stated he would think the size of the rate is more
of a function of the value of the property than it is the
amount of money that you're spending.
Mr. Waibel stated he will not be able to do this next year so
he'll do it again this year... he asked to make sure that
Council's Agenda packet contains what the assessed valuation
was in the previous year so it can be compared. Mr. Hanna
apologized for the fact that particular information was not
included in Council's packet. The current assessed valuation
is $1,072,545,656.00, so there is an approximately eight
percent increase in the City's assessed valuation. Mr. Waibel
questioned for clarification that means the City is getting a
full six percent increase? Mr. Hanna stated yes.
Floyd Kern, 320 White Pine Drive, stated his property taxes
raised $657.00 in one year. If he had been paying that amount
for the past 20 years, since he moved to his residence, his
taxes would be close to $13-14,000 per year. He felt it was
ridiculous to raise the taxes of lots of the people who live
in Bremerton. He emphasized he did not support the City's
construction of the boardwalk and he felt a lot of people do
not support the 4th Street construction project, however, the
City undertook both projects. He also believes a lot of
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people did not want Roosevelt Field given away to the College
and traded for the parking lot now located on the old
Bremerton Lumber site. He stated there are lots of things
done in the City he doesn't like.
Willis Stouffer, 732 So. Summit, questioned why was the City
approving an ordinance to raise taxes since that is the
County's responsibility? Mr. Hanna stated Mr. Stouffer was
correct, the County is the entity that actually levies the
property taxes on the City's behalf, however, it is necessary
for the City to pass an ordinance that is the mechanism by
which the City asks the County Commissioners to levy the
taxes. Mr. Stouffer stated last year the County increased the
valuation on his property by 24-25%. He challenged that
valuation and the Board Of Equalization rolled the valuation
back to where it was. He did not request that the valuation
be rolled back to that amount and he recalled at that time he
only made the statement that no one could complain about a
reasonable increase. Two months later, the County Assessor
raised his valuation 44%, which he now has to challenge.
Robert Ackerman, 3706 Arsenal Way, questioned what was the
City doing...trying to throw a bunch of old people out of
their homes by raising taxes. It concerned him that there is
less and less business downtown. President Fitz explained
valuation of property is made by the County and not something
the City does. In 1994 the City's O&M levy will be going
down seven cents per thousand. Mr. Johnson pointed out this
is a 106% lid, business and taxes are not going down even
though it sounds like they are. Mr. Overson stated this is a
3.4998% if you look at your tax assessment it is on the order
of almost $15.00 with the City of Bremerton getting 3.5%,
however, the County and State get almost $10-11.00. He
suggested the public go voice their displeasure to the County
Commissioners as well. Mr. Collins pointed out $8.00 of that
total assessment is given to schools.
Mr. Waibel pointed out the City will be collecting
approximately 6% more in property tax revenue this year than
last year, which is needed to keep up with the cost of living.
The way part of that will be paid for is by more people being
into the City and by the things that they have being worth a
little more.
#1884
M/S/C(Waibel/Johnson) to approve Ordinance, on first reading,
levying property taxes for 1994.
Vote on motion: In Favor: Overson, Neville, Waibel, Fitz,
Collins, Dawkins, Colvin, Johnson
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Opposed: Horton
Motion carried.
8A - PUBLIC HEARING AND RESOLUTION NO. 2447, REGARDING THE
RECOVERY OF FEES FOR SECURING THE PROPERTY AGAINST VAGRANTS
AND VANDALS AT 5962 HARLOW DRIVE, #AB93-205
In June of 1993, the City was forced to secure the building
located at 5962 Harlow Drive, owned by Stephen Jacobson, and
which is under abatement by the Building Department as an
unsafe structure. The building is heavily fire-damaged, and
has become an attractive nuisance to minors. The Street
Department performed the work and the abatement fund was
charged $540.14.
David Nelson, Building Official, stated the City is still in
the abatement process on this property. Due to identifiable
problems, he felt it was necessary to protect the public
further, at the added cost, while the abatement process
continued.
Mrs. Horton questioned how close is the City to having the
outstanding abatements come due and are any of them paying off
at this time? Mr. Nelson stated none are paying off at this
time and it will be some time before any come close to pay
off. He did find out that under the provision of the Code that
the City adopted for the abatement of dangerous buildings if
a lien is filed as a tax assessment, it is subject to the same
laws and requirements of any tax assessment lien, which
requires that there is a three year waiting period before
foreclosure actions can be taken against that lien. There is
only one lien, which was filed, that the City has asked for
foreclosure, however, it appears that was an incorrect lien
and it expired.
Mr. Colvin questioned if there was any interest charged on an
abatement? Mr. Nelson explained once the lien is put in as a
special tax assessment and goes delinquent it collects 7%
interest until it is paid off.
Mr. Overson raised a question about the appropriate
documentation included in this Agenda item and the following
Agenda item. Mr. Hanna, Acting City Clerk, explained part of
the back up documentation on items 8A and 8B had been
switched.
Mrs. Horton requested clarification of Mr. Nelson's comment
about the lien that expired. Mr. Nelson explained it was an
incorrectly filed lien (filed as a Mechanics Material Lien)
against a property. The City can go back and refile the lien,
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however, it would start the three year waiting period at that
time. Mrs. Horton questioned if the lien would be refiled?
Mr. Nelson stated he has not made that decision yet because
the property has changed ownership and the City would be going
after the new owner of the site for that purpose.
Public comment - none.
Mr. Neville questioned if the money collected would go back
into the revolving abatement account and would Mr. Nelson
pursue other abatements with those funds? Mr. Nelson stated
yes to both concerns.
Mr. Johnson questioned why did Mr. Nelson wait from June until
now to take this action? Mr. Nelson explained his department
got involved in doing other processes along with this
abatement. This particular house has gone through an asbestos
survey and several other things to try and take the house
down. Mr. Johnson stated it looked like the work was closed
out in June and if the City has to wait three years it now
becomes three years and three months.
#2166
M/S/C/U(Neville/Dawkins) to pass Resolution No. 2447, ordering
that the fees incurred for the securing of 5962 Harlow Drive
be filed as a lien against the property as reasonable
abatement costs.
8B - PUBLIC HEARING AND RESOLUTION NO. 2448, REGARDING THE
RECOVERY OF FEES FOR SECURING THE PROPERTY AGAINST VAGRANTS
AND VANDALS AT 716 AND 720 S. SUMMIT AVENUE, #AB93-206
In July of 1993, the City was forced to secure the buildings
at 716 and 720 S. Summit Avenue, both owned by D. Carroll and
C. Holman, which are under abatements by the Building
Department as unsafe structures. These buildings are
frequented by vagrants and vandals, and often need to be re-
secured to prevent entry. The Street Department performed the
work and the abatement fund was charged $956.54.
David Nelson, Building Official, stated again they had a bad
building that they felt needed securing as far as the
accessibility to undesirables and children in that area. They
did board the house up, however, someone broke into the house
and the City had to re-board the building. He emphasized this
situation has become a non-response from the owner.
Willis Stouffer, 732 Summit Avenue, stated he lives two doors
from 720 S. Summit and he did not envy Mr. Nelson his job. In
his opinion, the Building Department has done a marvelous job
in trying to get something done with this site. These two
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houses have been a source of trouble in his neighborhood for
years. The sites were originally owned by the Silket family,
then they were sold to a couple of single people who live in
California. He doubted that the current owners had ever seen
the properties and was probably using them as a tax right off.
About two years ago a murder took place in the facility at 720
Summit. Sunshine Realty acted as property-managers for the
properties and proceeded to move people into the two living
areas. Mr. Stouffer contacted Don Pratt, Director Of
Community Development, and asked that an inspection be made of
both 720 and 716 because they were not fit for humans to live
in. The City made the inspection and the homes were posted as
inhabitable and the owner was given a month to start fixing
them up or tearing them down. He supported Mr. Nelson's
statement that a lot of vandalism had taken place at both
sites, as well as kids gaining entry. He is worried that
someone will torch one of the houses, which in turn could
adversely affect the elderly lady who lives between the two
sites. He did not understand why the City couldn't move a
little faster on issues like this.
Mrs. Overson questioned in cases where the property owner is
not maintaining the properties and it becomes vandalized again
and again, is there something that can be done to encourage
the property owner to take more permanent action or can the
City take more permanent action? Mr. Nelson the City can
definitely take more permanent action and he did obtain two
estimates of $20,000 each to tear the houses down, which is
beyond what is in the Abatement Fund. He has had a total non-
response from the owners of these properties.
Mr. Colvin questioned how long does the Abatement process take
from the beginning to the point of demolishing a property?
Mr. Nelson stated it takes from four months to a year. When a
building is first posted, the owners are allowed 30 days for
take out of permits and 60 days to do the repairs. If the
owners do not respond within that time frame, then a Title
report has to be obtained and everyone on the Title must be
notified that there is pending action on the property and.they
are allowed 30 days to appeal that notice. Beyond that point,
if there is no response then the City has to decide whether or
not to board them up or tear them down, do asbestos surveys,
obtain bids, etc. They often times have to respond to appeals
of notification when someone has a second lien or interest on
the Title. Mrs. Horton asked is there a way we could recoup
these monies other than a lien if the person who owns the
property is solvent in other respects? Mr. Nelson the Code
allows the City the ability to either recoup expended costs by
lien or by personal judgement. It is a Council decision
#2763
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whether or not it is a lien or personal judgement process. It
is his recommendation that this proposal be done by lien at
this time. Mrs. Horton questioned why? Mr. Nelson stated
because it is an intermediate fix or protection for the City
until final action is taken or a decision has been made that
everything has been done that can be. Gaining the ability to
tear the house down with available funding would probably
bring out discussion going after the owner with a personal
judgemont. Mrs. Horton questioned if that was what Mr. Nelson
was working toward? Mr. Nelson stated he is working towards
that final resolution of demolition or getting the owner to
repair the building. In this instance, it does not look
hopeful for repairs.
Mr. Waibel questioned how long is the boarding up intended to
last and is there some end in sight as to how long the City
will wait for the owner to do something? It concerned him
that the materials used for boarding up will not last long in
the winter weather? Mr. Nelson stated he did not see a fix as
far as demolition or repairs are concerned over the next 3-4
months. He assumed he would be looking into 1994 before much
is done beyond that. He expected having to go back to the
site and replace the boards occasionally as they deteriorate
or vandals break in. Mr. Johnson stated the ones on Harlow
lasted three weeks. Mrs. Horton questioned what kind of
liability did that place the City in if the City puts up
materials and then does not take care of them? Ian Sievers,
City Attorney, explained the intervention is something the
City has volunteered to do in terms of enforcement. If the
City had taken no measures to secure the property, we would
not be liable. It would be the property owners' liability if
vandals were injured or caused a fire. The City does need to
be concerned once we enter into trying to protect the public.
The City's only concern is that the materials, fencing or
whatever is installed through an abatement action, are done
properly, are of sound construction and do not create an
additional liability that might harm someone. Now that the
City has constructed the fence, we do have to maintain the
fence and make sure there are no hazards associated with that
fence.
M/S/C/U(Horton/Neville) to pass Resolution No. 2448, ordering
that the fees incurred for the securing of 716 and 720 S.
Summit Avenue be filed as a lien against the property as
reasonable abatement costs.
Mrs. Horton recommended including on Council's Statements Of
Legislative Intent for 1994, a Study Session with Mr. Nelson
to talk about all the things that we have abated and the
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process to see if the City could find a more expedient way on
getting some of these abatements demolished.
8C - PUBLIC HEARING/ TRANSFER OF BREM-AIR DISPOSAL, INC.
CONTRACT TO ENVIROFIL, INC., #AB93-206
Pursuant to Section 8.13 of the contract, Brem-Air Disposal,
Inc. is requesting transfer of the contract to Envirofil, Inc.
A staff report, along with documentation provided by
Envirofil, Inc. has previously been provided to the Mayor and
City Council.
Sam Humphreys, Senior Vice president and General Counsel of
Envirofil, Inc., stated Envirofil is a publicly held
corporation, which is headquartered in Houston, Texas, and has
entered into an agreement to acquire both Brem-Air Disposal
Inc., and Kitsap County Sanitary Landfill, which owns the
Olympic View Landfill that serves Kitsap County. The
collection contract between Brem-Air Disposal and the City of
Bremerton provides that the City has the opportunity to review
the perspective transfer of control of Brem-Air in advance of
any transfer and has the ability to veto a transfer based on
two issues: (1) lack of perceived experience of the management
team; or (2) the lack of sufficient financial resources to
manage the collection operation serving the City of Bremerton.
They, at Envirofil, have provided fairly significant
information to Kathleen McCluskey, Director Of Administrative
Services, over the past several months regarding these two
points and have met on several occasions with her and members
of City staff.
Envirofil is a publicly held company and in December 1992 it
owned two landfills, one in Missouri and one in Illinois and
had an unrelated medical equipment business. At that point,
it was a fairly sleepy company and the principal shareholders
decided to recruit a more experienced management team and one
that was focused solely on the solid waste business. Starting
in late 1992, those shareholders recruited several new
managers and spun out the businesses unrelated to the solid
waste industry. Starting at that time the company focused on
moving out of simply disposal business and recruiting
collection experts and recycling experts. This new management
team over the months following December 1992, grew so that it
now includes David Southerland-Yoest, who is the President and
Chief Executive Officer, David Wassi, President of Browning-
Ferris Industries, Ltd.., which was one of BFI's largest
subsidiaries prior to joining Envirofil. Before he joined
BFI, he was a regional Vice President for Laidlaw and then the
Director of Laidlaw's corporate development world-wide. David
brought with him Keyin Chernoff, who was the chief Accounting
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Officer at BFI Ltd., and Hubert Bourque, who was the Chief
Compliance Officer for BFI Ltd.. David brings some fairly
substantial management talent to Envirofil and Hubert brings
probably as much experience in landfill operations and
recycling operations as a handful of people throughout the
country. Doug Asay joined shortly thereafter as Vice
President of Operations. Lee Wilson recently joined Envirofil
as a landfill manager and expert and within the last week they
engaged Dan Decorsi who was the Regional Vice President for
Laidlaw governing about 1/2 of its U.S. collection and
recycling disposal operations. Hubert is a recognized expert
in landfill affairs and has been involved in the solid waste
business for approximately the last 20 years in different
capacities...consulting engineer focusing primarily on
disposal facilities, worked throughout Europe, the Middle
East, Canada and the United States. He last served as
Divisional Vice President of Environmental Affairs for BFI
Ltd., Canada, where he was responsible for the environmental
compliance of the Canadian landfills/BFI. Hubert is one of
the most experienced landfill engineers and has as much
recycling experience as anyone on the west coast of the United
States. Doug Asay, who will be actively involved in
Bremerton, was a Vice President/General Manager for a
privately held waste company in Northern California for the
last several years. Before that, Mr. Asay served as District
Manager in San Jose and prior to that was involved with heavy
construction business with the Guy S. Atkinson Company in
different parts of the world. Doug also has significant
experience on the collection and recycling side of the
industry, in fact, he was instrumental in both the San Jose
and San Venito recycling operation advising those
municipalities on both establishing, operating and bringing
those operations into compliance. Doug will be actively
involved with the disposal side of the business in Bremerton
with the Olympic View Sanitary Landfill and has recently been
the manager of a much larger landfill for one of the large
solid waste companies and prior to that was a County Landfill
manager. Robert Ochiltree will be the controller of the
operations in Bremerton and currently serves as the Chief
Financial Officer of Environmental Waste Of America, which is
also being acquired by Envirofil and, which has collections
operations in Skagit County and Stanwood/Camino Island. Mr.
Humphreys emphasized their management team brings some fairly
significant strengths to any collection or disposal operation.
TAPE #1143
What is happening in the solid waste business today is that
the legislation and regulations affecting disposal and
collection operations are increasing significantly and within
the next quarter or two the Federal Subtitle D legislation
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will be enacted and will radically change the design,
monitoring, lining and the general overall compliance
structure for solid waste landfills in the United States.
That legislation will place increasing pressure on generators
of waste, municipalities, commercial operations and those who
transport the waste. Envirofil brings a wealth of experience
from the regulatory compliance standpoint, facility integrity
standpoint and from the general collection experience
standpoint. They are excited about coming to Bremerton and
working with the City in its collection needs and to help
phase in the new more regulated environment, which is being
forced upon everyone. Envirofil also bring recycling
experience, which they believe is not matched by more than a
handful of solid waste companies in the United States at this
time. Hubert and David formed the basis of the recycling team
at BFI Ltd., which handles volumes far in excess of those that
will have to be handled in Bremerton. Doug Asay was not only
instrumental in forming the basis for the California recycling
plants but devised the plans mostly by himself. They believe
as Bremerton moves into a period where the recycling issue is
going to affect residents in most cities in the United States
in a way it has never has, they can help establish a program
which works for you and the community and does in fact lower
the waste stream going into the landfill and does it on an
economic basis.
Envirofil's new management immediately began to attempt to
expand the business starting after December 1992. The two
landfills that were owned in December 1992, were basically
development landfills and had only started taking fairly small
amounts of waste. In the first quarter of 1993, they
purchased the Sacramento Valley collection operation, which
provides residential, commercial and industrial collection and
operates buy-back recycling centers. They just closed an
acquisition on October 15, in Stockton, California, which is
similar to the Sacramento Valley operation and they are adding
a recycling operation in Stockton as we speak. On October 19,
they received approval from the Amidor County City Council to
acquire collection operations in Amidor, California to round
out the northern California operations that they acquired
beginning in April of 1993. Envirofil has a tentative
agreement to purchase four additional collection and recycling
companies in New Jersey, serving approximately 89,000
residential customers in different burroughs in that area.
There is a state-of-the-art recycling facility in the New
Jersey operation and one of the few recycling operators that
has developed interesting end use markets and is actually
moving some of this product better than most of the
independents. They believe that operation will enhance what
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they have already brought together in the way of recycling
talent and facilities.
Financial Data: The company they joined, most of them after
December 1992, was small and had very limited operations.
Since joining that company, in connection with bringing in new
management and preparing for these acquisitions, they have
raised approximately $40 million dollars in new equity,
including the conversion of some debt that was outstanding,
approximately $17 million of that coming in a recent equity
offering. They have a credit facility with the Bank Of
Boston, who are one of the principal lenders to the solid
waste industry in the United States. The current facility
allows them to borrow approximately $20 million dollars. They
have a market capitalization as a public company somewhere in
excess of $100 million dollars at this time. Mr. Humphreys
believed the City Treasurer had contacted the Bank Of Boston
as part of the Director of Administrative Services's research
into their background documentation. Rich Hanna, City
Treasurer, stated a memo containing his response to the
Director Of Administrative Services was included in Council's
Agenda packet. Mr. Humphreys stated he and his management
staff standby to answer any questions that may come up from
either the City Council or the public.
Verna Rae Oraker, 623 N. Summit, stated one of her concerns
besides being worried that once again rates will be raised, is
the management team. She is specifically concerned about the
individuals who have worked with Laidlaw, and the reason she
is questioning the management team is with experience as a
School Board member, she has talked with other School
Districts that have had contracts with Laidlaw, got rid of
their own school buses and the rates were lowered. However,
after a couple of years their transportation rates were
increased by Laidlaw to the point where they are far beyond
what they were putting out when they had their own buses.
This is a story about Laidlaw that has traveled across the
nation from other School Districts that have contracted with
Laidlaw. If Envirofil's management team are former Laidlaw
individuals, then Mr. Humphreys might reassure this community
that garbage collections rates are not to be raised or
possibly even reduced. She wanted to know what the guarantee
was that they would not "screw" this community. Another thing
she is tired of hearing is "why can't we have a company from
within this state"? She emphasized there are locally owned
garbage collection companies in the Seattle area that provide
services that cost half of what Bremerton residents are being
charged. In regards to the recycling program, she has
practiced recycling for ten years, but now her rates are
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increased and half the time the garbage company doesn't pick
up her recycling stuff. She stated she'll continue recycling
on her own. She is sick and tired of rates going up for
utilities, garbage and property taxes.
Floyd Kern, 320 White Pine Drive, stated about a year ago
there was a proposal to build a garbage burning disposal
plant. In his opinion, that type of disposal is a coming
thing and he was not pleased that Lindgren turned it down. He
felt the people in the City should have a chance to vote on
any proposal that has to do with incinerating garbage. He
emphasized he would be willing to pay more on his garbage bill
if such a plant was put into operation by Brem-Air.
Robert Ackerman, 3706 Arsenal Way, stated a while back Brem-
Air was before Council making promises of what they would do
under the new contract being proposed. He questioned why
couldn't this area be serviced by a company that came from
within the state rather than an out-of-state company? He was
also concerned about the possibility of Envirofil hauling in
garbage/materials from other areas and dumping in the Olympic
View Landfill.
Archie Thompson, 1523 Bloomington, stated what is being
discussed at this time is selling a monopoly. Currently, he
pays between $10-11 for garbage and recycling service. It
concerned him that garbage rates in Coeurd'alene, Idaho were
less than $3.00 for a 30-gallon can and their recycling
services were free. In the many years he has recycled, he has
never had to pay for disposal of those recyclable items. He
believes the $3.44 recycling fee the City imposed on the
citizens is a "scam". He questioned why can't recycling be
free? He also questioned why hasn't the City put out a bid
for garbage service?
Orton Johnson, 924 Callahan Drive, stated in addition to what
has already been stated, he hoped that Envirofil would do a
better job of recycling than what is being done at the present
time. Everyone knows that the more recycling that is done the
longer the life of the landfill. Currently, the curb side
recycling program does not include corrugated cardboard,
telephone books and many magazines, all metals except aluminum
cans and high grade computer paper. He emphasized the
residents are paying 1.9 times what the County is paying for
service from the same company, however, the difference is that
City garbage collection is mandatory and not in the County.
He is impressed with Envirofil's management team, however, he
shares the same concerns that have already been mentioned.
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Lee Harbin, Norseland Mobile Home Park, stated he was sure
Envirofil was aware that more than one lawsuit is being filed
against Olympic View Sanitary Landfill and others. Earlier
this year they claimed that the landfill may be the potential
source of ambient air, surface water, ground water and soil
contamination. He questioned if Mr. Humphreys had an
opportunity to review these lawsuits, and if so, to what
extent will be their role be in future litigation, if any?
Don Larson, 135 Rainier Avenue, stated he has challenged Brem-
Air since July 1989, to give single people fair garbage
service. As a single person, he has been recycling for a long
time. In 1989 the State passed the Waste Not Washington Act
that stated people should recycle, reduce and reuse; and when
you do all that you don't come up with a can of garbage each
week. He did not know how one single person or ANY elderly
people who generate enough garbage to put out one can per
week. Brem-Air continued to charge him for one can per week
and he requested them to comply with that law, which didn't
work. He received a letter from Brem-Air's attorney on May
23, 1990, that indicated if Mr. Larson's bill was not paid
within one week they would take action against him. His
response to Mr. Camps letter was that they had a billing error
and to please correct it, which didn't happen. As of this
date, he has not found out what kind of action they had
planned against him. He assumed they were going to follow the
contract and place a lien against his property, but that did
not happen. He has not received a direct answer from Brem-
Air's law firm yet. He wants to know if this new company
takes over, what happens to people like him. He does not want
to sue the City or Brem-Air...all he wants is fair service for
individuals. However, if a lien was placed on his property,
he would not have any alternative but to go to court and
settle the issue.
Louis Coffer, 732 South Summit, stated he believed Council had
the opportune time to renegotiate the garbage collection
contract. He felt strongly that there were many things in the
contract that Brem-Air has not lived up to as agreed. He was
sued by Credit Bureau Inc., on behalf of Brem-Air over non-
payment of services received above the $1.75 per month rate
written in the ordinance and quoted in the contract for people
who do not have garbage. He does not mind paying for service
he receives, however, he does 100% recycling. He does a much
better job of recycling than any recycler. Recently he spent
$800.00 for a chipper/shredder and gives mulch material away
to friends and relatives. What bothers him is the way the
ordinance and contract is written in that every resident and
business has to have garbage service whether or not they have
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any; and they get billed for it. He questioned if the City
was transferring that capability over to Envirofil? He did
not have any concerns with the new company, but garbage is a
real problem.
Elaine Manheimer, 10195 West Old Belfair Highway, stated she
attended Council's Study Session, held October 18, to listen
to the introduction of Envirofil, Inc., to the City Council.
She left that meeting feeling very concerned. She had asked
several Council members to ask specific questions of Envirofil
for her because the Study Session was not open for public
comment. Ms. Manheimer handed out pictures of what Olympic
View Landfill looked like in 1972, when Don Lindgren took it
over. She also passed out pictures of what the landfill looked
like in 1989. When Mr. Lindgren took the site over, he bought
his property at the same time she did only she is located on
the Old Belfair Highway and hers is still all trees and has
the river and his is a disaster. She provided additional
aerial photos that were taken in June of 1993, which shows the
contamination. At the Council Study Session, she heard some
mention of some philanthropic community minded contributions,
which she admired until one views the whole picture as her
group did at the meeting on May 26, 1993, which was set up by
Mary McClure working with Parametrix, Inc., and Olympic View
Sanitary Landfill. They told at that meeting that the
estimate for clean up of the landfill area was a mere $20-25
million dollars and they wanted to study it for a couple of
more years. Envirofil stated they have been working on this
buy-out proposal for nine months...she said "welcome to her
world", they have been working on it for over 3 1/2 years.
Olympic View Landfill's own report, a Woodward Clyde Report
that is available at the Bremerton/Kitsap County Health
Department, shows contamination from the two wells they dug at
700 and 1,200 feet from the unlined portion of the landfill.
Their report goes on to say: "it is likely that in the absence
of beaver activity, this area would be classified as a
wetland", it further states: "...the hydrology of the site is
characterized by a high volume of rapidly flowing ground
water". Their report further states: "Based on this
evaluation on conditions of the site and on past experiences
regarding landfill remediation, the implementation of a
program of institutional control limited action is the
appropriate course of action at this time. The institutional
controls include monitoring, evaluation, evaluation of the
land gas collection, leachaid collection, improving
coordinating with local regulatory agencies. Ms. Manheimer
stated this is exactly what is being done and it is not
working now. The report goes on to say that structural
controls are too high priced and not likely to be required.
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She has to ask why not? The report goes on to discuss ground
water containment actions, which are expensive and
effectiveness is limited by the possible presence of chemical
impact beyond the property boundaries. The report states:
"that because of the data suggests the chemical concentrations
do not decrease with the depth in the aquifer and regional
information shows the Kitsap formation acts as only a
partially affected aquitard. There is a possibility that
leachaid from the old fall area could adversely affect the
seventh springs aquifer that underlies the Kitsap formation.
None of the ground water containment action would address any
impact to this deep aquifer". Ms. Manheimer stressed that is
the Union River and the City of Bremertongs drinking water.
The report goes on to say that the recharge is only 21-26
inches per year in the South Kitsap sub-area. This is very
convenient for statistics, but the Union River valley receives
the most rainfall in the County and has a much higher recharge
rate than the entire rest of South Kitsap where it is always
included. The report goes on to talk about elevated levels of
organic compounds, dissolved metals and other chemical
parameters that have been measured down gradient from the
landfill and the elevated levels are suspected as the result
of leachaid. The elevated levels have dissolved iron,
manganese, chloride and specific conductivity measured in
surface water north and west of the landfill likely are a
result of landfilling operations and may have been transported
from the landfill via the surface and/or ground water. The
report states: "The ground water usage in population, based on
12 users within a two mile radius...". Ms. Manheimer directed
Council's attention to the pictures she provided and pointed
out there were more than 12 houses located in the area
described in that statement. She also provided a copy of a
document out of the report that shows the water level and it
does not matter how deep the wells are. She provided a map
from the report that shows the Union River, the wetlands and
some sites of sediment tests. Her concerns are that Envirofil
seems to be establishing in small communities across the
country and may in affect become controllers in a business
with an extremely high profit margin. She questioned if they
are targeting small areas for large massive dumping of "out-
of-the-area" waste? She has been told by the Health
Department that Envirofil wants to enlarge and expand the
landfill. She questioned where would such expansion take
place? The pollution is out-of-control on this property and
is threatening the whole valley. This is further emphasized
by the contamination of the landfills own domestic wells as
shown by their October 12th request to the Port Of Bremerton
for water hookup. Another concern is the apparent lack of
disclosure of contingent liabilities from the four lawsuits
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pending against this property, which are already in existence.
These legal proceedings could easily result in millions of
dollars in liability, which the City of Bremerton is a
potential liable party. Her big questions is was full
disclosure of the lawsuits with the contingent liability made
to all parties concerned with the financing of this proposed
sale? The past three or four years of working with various
government agencies and bureaucracy has done nothing to
alleviate these problems. Much money has already been spent
on various tests but the sediment samples of June 1993 leave
no doubt as to the contamination of the Union River and
surrounding properties from heavy metals. Site # 1 is located
on east fork of the Union River in a wetlands at the base of
the northern most base of the landfill boundary. The wetlands
are undeveloped and a considerable distance from eroding or
development. Access to Site # 1 is through a path maintained by
the property owner. The Amtest results show a high level of
chromium, nickel and zinc, the evergreen study showed high
levels of lead, concentration of chromium, nickel and lead at
this site exceed the lowest possible affect. Chromium, nickel
and lead are in the moderately polluted category of EPA
standards and chromium is up in the highest polluted category.
The chromium samples results at this site were the highest in
the study.
Ms. Manheimer stressed this is a residential farming area.
The reports from the Health Department and Parametrix, Inc.,
and contamination of the domestic wells at the landfill show
the spread of the pollution. She fails to understand why when
we, as taxpayers, employ Commissioners, Mayors, Council
members, supervising agencies and permitting agencies, such as
the Health Department, that this information is not shared and
fully disclosed between those entities as well as with the all
of the people residing in Kitsap County because it vitally
affects their drinking .water, their futures and their
liabilities damages. Another round of lawsuits may be filed
very shortly in this matter, and the City of Bremerton should
be aware that they will be considered a potentially liable
party. In consideration of all the information she provide,
she wonders about a company like Envirofil that has only been
in existence a couple of years and why they even consider
purchasing Brem-Air for 20 million dollars and to add to it
the additional knowledge of 100 million dollars in liability
hanging over their head. The profits in this business must be
even greater than she could imagine, but once again it will be
the taxpayer who will have to bear the brunt of this
ecological nightmare. She urged Council to not approve the
transfer of ownership, which will only add another level of
confusion to this matter and further murky the already murky
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waters.
Jim Adrian, 621 Washington Avenue, stated he is a resident and
investment property owner in the City and does quite a lot of
business with Brem-Air Disposal Inc. He spent a great deal of
1990-1991 serving along with Councilman Johnson on the Solid
Waste Advisory Committee, so he does have a background on some
of the issues. He committed to submitting a list of questions
to the Council President by Friday, October 22, which are to
be responded to in writing. Some of the issues he will be
addressing at this time were identified in a letter, dated
September 29, 1991, that he sent to the City. Some of the
comments in that letter were incorporated into the contract
and some have not been completely resolved, in his opinion.
He believes the City has done a less than desirable job in
administering the contract with the contractor. This has been
very unfair to the citizens of Bremerton who have expected
their City to help them when they were in dispute with the
contractor and also unfair to Brem-Air, who was complying with
the contract and administering and interpreting a City
ordinance
at the same time. In his opinion, the City "threw up their
hands" and left the contractor with the responsibility to
implement the contract and implement an ordinance at the same
time. The City was one year late in adopting and implementing
an ordinance that was to be compatible with the contract.
Finding a responsible party in the City of Bremerton to help
him with garbage collection problems has been an impossible
task. As was mentioned several years ago, no one within City
government would step forward and take on the responsibility,
but rather point at someone else as the responsible party. By
the same token, he has experienced the same problem with Brem-
Air when trying to get responses from them. In fact, he has
had better response calling Mr. Houge, Brem-Air's attorney, to
try and obtain definitive answers. He finds it very
frustrating that he finds his City government will not help
him in resolving disputes he may have with Brem-Air. The City
Council, by ordinance, should assign a staff manager as a
compliance officer or hire a new person. That person should
be a City contact point for all questions, clarifications and
any issues that revolve around solid waste. It should not be
left up to the administration to make this assignment since
they have had two years to take such action and have totally
ignored it. Nor should citizens be forced to fish around for
a responsible official who will at least return a phone call
and try and help them when they have a problem.
Household hazardous waste drop off sites - the City and County
need to do a better job for the contract in collecting
i
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household hazardous waste. More sites need to be established
and there needs to be provision made for weekend drop offs
rather than every six months in different locations. King
County is a good model for collection of household hazardous
waste products on weekends.
Bremerton needs a transfer station for large items - this is
more important now since the City-wide annual clean up has
been reduced. Requiring customers to drive to a landfill site
may not be cost effective or possible for some citizens and
may resolve in illegal dumping if the dump site is
inaccessible for whatever reason. He has found that people
have used his commercial dumpsters as convenient dump sites
for their garbage, which the contractor picks up and them
bills him.
Compost sites in the City - the City/contractor should set up
a west Bremerton and east Bremerton site for composting or
shredding vegetation. Volume in the landfill would be
significantly reduced if this was available and the resulting
humus could be used for City parks or sold to the general
public to recover operating costs. This is not a new issue
and the citizens were promised this would be looked into and
the City and contractor would have something on line two years
ago.
There should be some sort of body established by both parties,
whoever has the contract, that would be used to settle
contract language interpretations, disputes, etc., absent a
Superior Court challenge, which is a civil matter and takes
forever to get through.
Several issues were brought up at Council's Study session
about community involvement. He is very familiar with what
Brem-Air has done, what Mr. Lindren has done and everyone
should be grateful for that support. However, he felt this
needed to be looked at from a different prospective and there
are two elements: (1) community involvement, what does it mean
and who pays. With an exclusive franchise the contractor has
a monopoly or strangle hold on the market. Any company,
whether Brem-Air or Envirofil, is entitled to a fair return on
investment. Because there is an exclusive contract, it does
not really mix in a true sense with a free market. Under most
circumstances monopolies are illegal. Any community service
comes out of the bottom line for which a publicly held company
is held account to the stockholders and ultimately it comes
out of the hides of the customers. As an analysis we should
put a dollar figure on the community service work that is done
and see how much that is affecting customer rates now or in
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the future. He felt it was unfair of the City Council to talk
about binding Envirofil, which is a publicly held company, to
any type of community service. The bottom line is to minimize
rates for the consumers and to assure the best possible
service available. Does community service mean mixing it up
politically? He would like a direct answer from the
contractor on what their political corporate philosophy is on
that point. Will the new contractor make political donations
to the campaigns to those elected officials charged with over
seeing the contract and representing the citizens? Can we
expect the company to play king maker behind the scenes with
large corporate donations to individual political campaigns.
Corporations are typically amoral with a corporate political
agenda that revolves primarily around the bottom line and
responsive to their stockholders. They typically do not have
a political agenda or political philosophy. Donating to
elected officials who oversee a contract on behalf of the
citizens smacks of buying the best elected official money can
buy. Mr. Adrian stressed he believed it was bad business for
any large corporation that has an exclusive contract to play
in that arena. In his opinion, this contractor should not be
playing in local politics.
He questioned how long will Envirofil stay in Bremerton? He
has dealt with the staff at Brem-Air and overall was pleased
with their assistance. He did not believe the employees of
Brem-Air have had good direction over the past year, but they
live in our community. He questioned if they would be allowed
to stay in their positions under the new ownership and if not,
now many local folks will be displaced over this transaction?
Education - throughout the 200 hundred hours of meetings
during the development of the new contract, there was a great
deal of "lip service" about education programs the City would
see from Brem-Air. So far, he has received two pieces of mail
that talked about education and basically told him what his
recycling operations are and what he could place in the
recycling bin. Previous discussions brought out use of public
access television to help people like him, who are investment
property owners, to educate his tenants, networking using
public access television to schools and the contractor and
getting kids up to speed on environmentally sound practices.
He stressed there has been no agenda developed...neither the
City nor the contractor has produced what was previously
promised. When education on garbage related issues have been
initiated from outside, Brem-Air Disposal Inc., was very
cooperative in that effort. However, he sees no evidence of
pro-active education of the public.
Rates .... he owns properties both in and outside the City and
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the rates in Bremerton are 39-60% higher than the County
rates, not even considering the mandatory recycling charge.
The percentages quoted relate to single family and two can
service. He was not talking about multi-family or dumpster
services. He questioned what can we expect from the
prospective contractor in reassessing these rates we are stuck
with?
He encouraged Council to hold off on approving the transfer of
ownership until the many questions raised are answered.
He also felt regardless of the affection felt toward Brem-Air
or any good works that Mr. Lindgren has done, the decision
should be made on the merits of what Envirofil can provide and
what service they can provide for the next eight years. In
his opinion, this is the most or one of the most important
issues that Council will deal with during their term of
office. If you look at the out dollars of this proposal at
the present value, you would be looking at a 20-30-40 million
dollar package. This is no small item and he believed Council
needed to take the time necessary to make sure the right
decision is made on behalf of the citizens of Bremerton.
Glenn Jarstad, 2823 Hefner, stated his involvement in garbage
in the City of Bremerton goes back a full 30 years when he was
elected to serve as the Mayor of the City. In those early
years there weren't too many rules and regulations. He
acknowledged there are millions of dollars in liability
pending with the lawsuits that have been filed on impacts of
pollution from garbage landfills. He acknowledged City had
benefited from the taxes collected on garbage collection. He
related a conversation he had with the person who owned the
garbage collection service prior to Mr. Lindgren that at the
time he sold the business to Don Lindgren he viewed him as a
man of vision, someone who would do the right thing and had
the goodwill of Bremerton at heart. Mr. Jarstad felt some
tribute should be paid to both Don and Bev Lindren for their
life's work into Brem-Air and their commitment to the many
worthwhile causes they supported over these past years. At
the time the Navy built the steam plant in the shipyard, he
was very interested in solid waste disposal. He was invited
to the first meeting that the Navy held on building the steam
plant. At that time, the public was encouraged that a steam
plant was to be built that could compact garbage in Kitsap
County and use it as fuel for the plant. While Mayor, he had
an opportunity to visit Germany and tour two garbage burning
plants that were built and functioning in that country. The
Navy put the option of garbage burning in their planning of
the steam plant, however, later on they decided to go with low
sulfur coal fuel. He was sorry that decision was made by the
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Navy because there are some real problems with garbage
disposal throughout the United States. In response to
previous testimony, the City gets its water from the McKenna
Falls area of the Union River, not from the river itself. He
felt it was very difficult in the private business field to
have language in the contract requiring the City to pass
judgement on the transfer of ownership of the garbage company.
Such language was not in the contract when Mr. Griffin sold to
the Lindgrens. He emphasized Council does have a very serious
contract to consider, which is a major utility and as a
utility a lot of the rates must conform to State Utility laws.
He also pointed out Puget Sound Naval Shipyard is a very large
contributor of garbage in Kitsap County. He felt it was very
important to have a good group of people, who are very skilled
and up-to-date on what's ahead for landfill operations and
garbage disposal. He personally didn't feel his garbage bill
of $12.00 per month was very high. He believes Council's
basic responsibility is to determine if they are comfortable
with a company, who has made an offer to purchase Brem-Air.
If Envirofil is deemed an upstanding company and responsible
people, then he felt Council should approve the transfer of
ownership. He publicly thanked the Lindgrens and felt they
gave their life to a utility that served the residents of
Bremerton well.
John Law, 2129 E. 17th Street, stated he had listened to
others' concerns and admired the talent that Envirofil has
brought in from Texas and California. He felt their talents
should be recognized and "our" lack of expertise should also
be recognized. He suggested taking advantage of some outside
advice and recommended someone like Steve DiJulio, who has
handled other City legal cases, to provide the necessary
expertise in this area in order to protect everyone's
interest. Right now he did not feel confident that anyone in
the Council Chambers had the expertise that Envirofil has
going into this decision and felt the City should have a level
"playing field".
Mr. Hanna, Acting City Clerk, read into the record a letter
received from Helen David, 1503 Carr Blvd.: "There should be
changes in any contract between the City of Bremerton and the
private contractor for garbage collection and recycling. I am
fighting for choice to have garbage collection or not. Since
I am a retired person living alone, I generate relative no
garbage, approximately two sacks per year. I do not eat
canned foods nor drink from aluminum cans. I also compost
what little kitchen waste I have and do not subscribe to any
daily papers or magazines; and utilize my son's garbage can
for anything I deem necessary to throw away. I recycle one
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small sack each year at recycle drop points. I do not put out
a garbage can at all or recycling bins, therefore, I resent
being charged for services I don't want or need and am not
receiving. I have brought this to the City's attention before
to no avail. It was suggested to me that I should purchase
a 20 gallon can to reduce collection fees. This means that I
should spend money on a can that I don't need so that I can
put out my empty garbage can for weekly collection. Since I
am being charged a full rate for no can, this would reduce the
fee I am being charged for services I am not receiving. There
are other solutions to this dilemma, such as creative
collection procedures: (1) consumer purchase of tags to be
placed on garbage cans for collection. This would eliminate
some billing procedures also if a household opted for weekly
collection, tags would not have to be purchased and billing
and weekly collections could remain status quo; (2) have
regular collection in multiples of months, rather than weekly.
When I suggested this to the City previously, the reply was a
reduced rate for recycling was being considered for senior
citizens. This is not what I am protesting, however, I think
that is a good idea but another issue. I am not a senior
citizen but am on a disability income, but again, that is not
the point. I want to make it clear that I am against
mandatory fees for garbage collection and recycling and for
choice. I believe the City has ignored my complaints as
evidenced by the suggestions and replies. There are many
citizens who have the same thoughts and feelings as I do as
proven by the response to her letter to the editor in the
Bremerton Sun. Give us back our choices that America stands
for".
Mr. Humphreys stated most of the concerns voiced could be
categorized as either complaints against the current system or
problems with the landfill or simply some negative reaction to
the current rate structure and some lack of accessibility to
people at the Brem-Air facility when complaints arise. He
assured everyone that what success the City and residents had
with the current system dealing with problems and service and
what lack of success existed, they will focus on from the
beginning. Those things that the public likes they will try
to maintain and those things that people don't like they hope
to improve upon them. The notion that this is an out-of-state
acquisition and seeking local ownership is a little bit of an
illusory issue. What you will find is most of the good things
about Brem-Air will remain the same, good people will remain
the same and they do not foresee any radical work force
changes. They understand the collection operation is staffed
through a Teamster's Contract, who they have worked with in
other parts of the country and plan to work with in New
!
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Jersey. There are no significant plans, in terms of some work
force change, that would be negative to the collection
operations. He believes accessibility will increase under
their management. They see the new waste management industry
being driven by service. In response to the question will
they have people on site to address questions, he believed the
public will find that Envirofil is as service oriented as any
garbage company that has served this area and they would like
to think service will improve and that the openness of
management to new ideas and to complaints about garbage
service will be high. He conveyed assurance that Doug Asay
will be available virtually around the clock during the near
term. He did not believed any one would see a distinct
negative change brought by the sale to a "out-of-state" firm.
Basically, there will be the same people doing what they have
been doing for years, but hopefully with a little bit of a
layer of oversight, technical expertise and financial backing
that allows this company, on the collection side, to move into
a new world of higher rates of recycling, struggling with the
many issues of recycling and what that does to the citizens as
a consumer of these services. Envirofil believes that not
only will the citizens see a little more attention to detail,
but will have, on the disposal side, a group that can deal
with the problems as they exist with any old landfill that has
an unlined portion. The current active disposal facility is
in compliance with the latest regulations, the old unlined
portion of the facility did have some problems and they spent
the better part of the last six months attempting to decipher
those problems and determine whether or not they were
manageable. He will state that was not a simple process and
not one about which they were cavalier; and it was one that
their financiers and public stockholders are knowledgeable of.
They have toured landfills all around the world and these are
not problems that are unique to the Olympic View Landfill, nor
are they problems they think are unmanageable. Does the City
have a responsibility for any of those problems? Any
generator of waste to a site that contaminates ground water
has a responsibility, so it is to the City's benefit to have
a little more technical expertise on the disposal side when
you are the principal generator. The question there is
whether you would have a continuation of the processes that
have been put into place or maybe enhancement of them. He
assured Ms. Manheimer that they have looked at all the things
she has looked into. There are difficult issues facing any
entrant into the solid waste business these days and they
think they have engaged a group that is about as able to
address those issues and work hand-in-hand with the City and
County as any company in the country.
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Laidlaw Waste Systems is where the a couple of their people
have come from, not Laidlaw Transportation, which is an
entirely different company. Envirofil management is not
impressed with Laidlaw Transportation management practices.
New technologies - garbage incineration, composting...he
assured everyone that if there are technologies that make
sense economically, environmentally, scientifically they have
considered them. They have discussed, in Washington, some of
these technologies andknow what the current administration in
the State of Washington thinks about incineration, reduction,
recycling, etc., and he believes Envirofil can bring in some
fresh ideas in those areas. There will be issues to consider
in the future.
They will engage in a thorough analysis of what services are
being provided to Bremerton, what services are being provided
to the County residents and what they are paying compared to
what City residents are paying and why any disparity exists.
On the issue on what happens to people who do not generate any
waste...they want to figure out all of these things, however,
they do not have all the answers at this time. They have not
had the opportunity to actually drive around on the collection
routes to see what is actually being expended to provide the
level of service that Bremerton is receiving. They have
pledged to the Mayor and City Council to look at all of these
issues and there is nothing that is sacred what the City is
getting now, in terms of service, and what citizens are having
to give up for it. Envirofil just does not know what is going
on in either the City or County or what kind of gratuities do
exist in those two engagements.
Education - they do feel strongly about education in the
schools and teaching children about what is happening across
the country with the waste shed and what it can be dealt with
in a way that is better than it has been dealt with in the
past. They are interested in getting the Brem-Air people
involved in this process.
In summary, he concluded with the statement that they are here
because they intend to be in the community. They are going to
own Brem-Air Disposal and wish to honor this contract in a way
that makes the City and citizens happy. They want to run the
landfill in a way that protects the City and makes the
citizens of the Union River-shed happy and to be a good
partner in the community. If this contract is transferred, he
predicted that a lot of their people will be visible within
the community.
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Mr. Johnson questioned if the City had received supplemental
submissions to Envirofil's 10K form for items 10, 11, 12, 13
of Part III, which covers certain relationships and related
transactions, security ownership of certain beneficial owners
in management, executive compensation, directors and executive
officers of the company? Mr. Humphreys stated no, that
information has not yet been filed with the UTC. Mr. Johnson
questioned when would the City receive them? Mr. Humphreys
stated that documentation will be filed before 120 days after
the fiscal year. He would provide Council with copies assoon
as they are filed with the FCC. Submittal of those documents
are due on October 27. The City does have substantial
information in some of the other documents that were provided
to Kathleen McCluskey . The Director and Executive Officer
information is included in the Agenda packet. He emphasized
there is no financial information on Envirofil's revenues or
income in the supplemental documentation other than
information on salaries and options and executive
compensation. Mr. Johnson stated Envirofil's security
ownership and who is buying who and who owns what is very
financial and of interest to him. He questioned if the City
had the amendment to the contract to implement multi-family in
February in place? Ian Sievers, City Attorney, stated he did
not have the amendment to the contract, but there was a
commitment to defer negotiating that amendment. Mr. Johnson
questioned if the billing was taken care of where the City was
miss billed for asphalt and concrete? Mr. Hanna, Acting City
Clerk, stated Kathleen McCluskey's memo to Council did
indicate that had been resolved in the City's favor. Mr.
Johnson stated he noticed by the Dow Jones Service that on
October 12 Envirofil went from small capital NASDEC listing to
a Nation listing and questioned if that was good news and what
did it do to the value of their stock? Mr. Humphreys stated
yes, it was good news and their stock did go up a little. That
really relates more to liquidity. Mr. Johnson pointed out on
Monday, at the Study Session, Mr. Humphreys stated their stock
was trading at 4 and upon checking he learned that it was
trading at 3.25 and now it is downto 3. Mr. Humphreys stated
most of the waste management stocks got "hammered" yesterday.
He emphasized they were not as concerned with the "paper" as
they were with building a company that provides the best
service possible. Mr. Johnson questioned the cost of
acquisition of the Stockton, California transaction they
recently closed...was the total bill 6 million plus 125,000
shares? Mr. Humphreys stated that was for both transaction in
Stockton. He pointed out the Amidor transaction was not
closed yet. Mr. Johnson noted then that leaves you a million
dollars cash and 25,000 shares. He questioned what did they
hope to get the other acquisition for? Mr. Humphreys stated
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that was about right. Mr. Johnson stated if he is to believe
Envirofil's proforma balance sheets he needs to know how all
of these transactions come out and the impact they make on the
financial status of that company. Mr. Johnson stated
everything that he has seen of Envirofil's staff is very
positive, but when it comes to the financial side, which is
where you really determine the long range stability in the
garbage business for the City of Bremerton, that has to be
sound. Since December of 1992, Envirofil has done a lot of
business. He is not convinced yet that he is satisfied with
what he knows so far. Mr. Humphreys stated if Mr. Johnson
wanted specific answers, he was certainly able to provide
them.
Mrs. Horton noted Council had in its documentation a memo that
states the Bremerton/Kitsap County Health District was
contacted and indicated the Health District interest is in
compliance matters of the landfill. This memo states that the
Health District did not do any background check and yet the
comment goes on to say you are ready to issue a Permit when
the sale is completed. Scott Daniels, Bremerton/Kitsap County
Health District, stated that was correct. Mrs. Horton
questioned how did Mr. Daniels know that Envirofil is a
competent firm environmentally, if no background checks were
made? Mr. Daniels stated they had met with Envirofil
representatives several times over the past few months
discussing some of the compliance issues. The Health District
will go ahead and Permit the company that owns the landfill
and will work with whoever owns the company to be in
compliance with the regulations. Mrs. Horton questioned if
Mr. Daniels thought, as part of that permitting process, since
this is a company that is coming in virtually unknown to our
local, that some background checks would be done to see what
their track record had been on environmental issues? Mr.
Daniels stated they had not done that previously. Mrs. Horton
questioned how difficult would it be for him to do some kind
of background check? Mr. Daniels stated with the Health
District's resources probably very difficult. Mrs. Horton
questioned if he could pick one issue and call one or two
other entities from which they have dealt and get some sort of
history on their past work. She would like some assurance
that Envirofil not only has a good technical staff, but that
they also have a track record in good environmental
compliances. Mr. Humphreys suggested that Mr. Daniels talk
with the owners of facility that were managed by some of
Envirofil's management team. He believed any checking would
find a very high respect for their technical, engineering and
environmental capabilities. His group has been with the two
landfills that they currently own for 6-7 months and upon
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checking those facilities one would probably find that they
had been cleaned up some since taking them over. He believed
Kathleen McCluskey spoke to someone in Illinois and Missouri.
TAPE #1144
Doug asay explained Kathleen McCluskey did check with the San
Venito County Director Of Public Works about his involvement
in operating that landfill. He believed in Councilts
documentation there is a glowing report on what was done at
that landfill. Mrs. Horton explained she sits on the Board of
Directors of the Health District and she would like to hear a
response from them after checking into a more technical aspect
than the City administrationts approach.. Mr. Asay stated the
other thing Scott Daniels discovered when taking with Hubert
and Lee is that he was impressed with the degree of howledge
both of those individuals have. He believed it was on that
basis that Mr. Daniels based his decision. In response to the
concerns about the possibility of Envirofil bringing in
garbage or materials from outside the County to dump in the
landfill, the contract with the County is such that it is very
limited and not possible. Mr. Daniels stated there is a
Health District Ordinance that limits the amount of waste
coming into the landfill from out of County to 5%. During his
meetings with Envirofil representatives, they were asked many
hardquestions regarding compliance issues and because of that
the Health Districts comfort level is pretty high. The
Health District was also told Envirofil was considering
retaining Parametrix, Inc., who has handled the engineering
needs at the landfill for many years. Mrs. Horton stated she
did not want what she was going to say to sound negative in
any way...she was not necessarily questioning Mr. Daniels'
technical howledge, but what she was trying to ascertain was
more in the realm of a technical knowledge and having the
ethical wherewithal to translate that into every day "your
going to do it". She wants some assurances that will happen.
She is not questioning the integrity of any member of
Envirofilts management team, but due to their very short track
record there is very little to glean as far as their landfill
activities. Doug asay pointed out Kathleen McCluskey did
pursue background research into their management teams former
careers. He was in charge of Newby Island Landfill in San
Jose, California, which receives the entire volume of solid
waste from the City of San Jose. He questioned do you think
we would not be capable of handling this? Mrs. Horton
emphasized she was asking a member of the Health District, of
which she sits as a board member, to call someone and ask
technical questions that Ms. McCluskey may not have the
wherewithal to ask.
Mr. Oversen stated when the City was renegotiating the
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contract one of the individuals he works with in the Shipyard
knows Mr. Lindgren quite well and had a comment and he wanted
Council to consider it for whatever it is worth..."you don't
have to renegotiate with Mr. Lindgren because you and the
County don't owe him anything because you have already made
him rich". He was not sure that statement was true, however,
he stressed keeping the focus correct. Mr. Overson expressed
concern that the Mayor was not present during this discussion
and had not recommended "endorsement" of the proposed transfer
request. He questioned if there was a reason why Mayor Mentor
had not commented on this item? Envirofil has probably
assembled some of the best credentials he has ever seen in
this kind of an operation. However, there are concerns such as
the fact that in a few months they will own no fewer than nine
companies, large and small, all across the United States. He
questioned if they were up to handling all that business and
are they that good? Basically, the issue will come down to
what can Council do to resolve the numerous concerns that the
customers are asking. He questioned if we, as the Council,
can do anything to get guarantees from this new organizations
that it will be as good or better than it ever was in the
City?
President Fitz stated earlier Mr. Law suggested that the City
should use the outside counsel services of someone like Mr.
DiJulio to assist with this process. She wanted Mr. Law and
the public to know that the City has requested outside counsel
from Mr. DiJulio and have had several discussions with him on
this issue. She noted also that a representative from Mr.
DiJulio's office was in attendance at this hearing.
Mr. Johnson stated there was a proposed resolution that the
City Attorney provided to Council prior to the Council
meeting, which contained a "Whereas" that mentioned Envirofil
and Brem-Air had entered into a written agreement that the
City finds as satisfactory. He questioned if such an
agreement existed? Mr. Sievers explained Brem-Air's attorney
provided copies of such a resolution. Mr. Johnson stated
maybe given the hour and the fact that Council had not
received some of the documents, that this item should be
tabled for one week.
Mr. Waibel supported the suggestion to table or continue the
item but felt it should be for two weeks.
Mr. Colvin stated there is one items that the citizens of
Bremerton are interested in and that is how soon can they
anticipate a rate increase. He did not known the answer to
that concern and if anyone could respond at this time he would
appreciate their input. Mr. Humphreys explained the
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supplemental information from the 10K can be provided sooner
than when it is filed with the FCC. If receiving this
information in a shorter time frame would assist Council in
tabling this item for a shorter period, they can provide the
information fairly rapidly. Regarding the rate issue, they
had mentioned they don't have all the answers as to why rates
are at a certain level in the County and at a certain level in
the City. He believes it is well within their ability to
asses that information and it can be investigated fairly
promptly.
Mr. Collins stated there is one thing that needs to be brought
out on the table once and for all to help people understand
what is taking place and that is curbside recycling. He
emphasized recycling was something that the City had no
control over and is mandated by the State. He emphasized
County residents will also be required to support a recycling
program. He also emphasized there were other aspects of
garbage collection that the City does not have any control
over. He suggested citizens look to their legislators and to
their County government as to why some of the things cost what
they do. At the present time, Mr. Lindgren pays the County
$54.00 for every ton of garbage that is dumps in his
landfill...that increases the cost to the residents. However,
that was not something Mr. Lindgren had control over or that
Council had control over. Every citizen in this City needs to
know that we have pressures that we have no control over and
yes, it costs the residents unless the legislators or federal
government can be controlled.
Mr. Overson noted Mr..Colvin asked Mr. Humphreys when will the
rates go up and his response to Mr. Colvin confused him.
There is a letter that states the contract will be taken over
by Envirofil and it was his understanding that the rates were
established by contract, thereby there not being any
flexibility. He questioned if Mr. Humphreys' believed there
was flexibility within the rate structure? Mr. Humphreys
stated he did not mean to imply that the rates were going to
be anything other than what is currently in the contract. In
terms of what they plan to do and what they have pledged to do
is to see why they are at their current level. There seems to
be this incredible pressure for Envirofil to justify that when
they are stepping in after the fact and know nothing as to why
they are at that level, why the County has a lower lever and
why there is some disparity. Mr. Overson is correct, the
contract price is in the contract. Mr. Overson noted that
with Mr. Asay's background he was probably the person to
figure out an answer upon investigation of that point.
TAPE #1144
City Council Reg. Mtg. Minutes
October 20, 1993
Page 38 of 39
Mr. Johnson questioned if the City Attorney, as Council's
legal counsel, felt the transfer proposal was acceptable? Mr.
Sievers stated as Council was aware from past discussion,
there are four criteria that needs to be applied in approving
this transfer. Two of those criteria have to do with the
quality of the transferee, the persons buying the company, and
two have to do with making sure that all the loose ends are
wrapped up with Brem-Air before the City allows them to
transfer the company away. This letter is intended to satisfy
one of the conditions as it states: "they will continue to
meet the obligations of the contract for the balance of the
contract term". He did not have any problem with that form.
Past contract obligations and whether those have been
fulfilled is another issue. As to future intent to comply
with the obligations of the contract, he felt this was all
that was required. Mr. Johnson stated he would feel better if
Envirofil's letter recognized that the City is reserving its
rights to deal with some existing problems today that will
probably exist if we transfer the contract. Mr. Sievers
stated that may be something Council would want to add as far
as content to the letter. Again, it is a matter of a past
obligation in that the City has had concern with some
representations made that are related to the contract. A time
for fulfilling those representations has passed, but is
probably a continuing obligation to make those changes.
Whether this should also reflect a continuing recognition in
the City's reservation of those rights against the transferee,
that may be something Council wants to add. Mrs. Horton
stated the letter under discussion states that Brem-Air shall
assume and discharge all of their obligations under the
contract for solid waste recycling and disposal for the City
of Bremerton. By discharging all of their obligations, she
questioned if Brem-Air would still be responsible at some
point in time if an issue of environmental clean up at the
landfill came into play? If at some later date, it proves out
that Brem-Air/Don Lindgren had some sort of responsibility for
environmental clean up, she didn't want this letter to negate
that obligation. Mr. Waibel questioned if it is possible, at
this time, even thoughthere are no contract re-openers in the
transfer of ownership, through mutual agreement that in fact
the letter could include the agreement to go as far as Mr.
Humphreys suggested he might in terms of not only determining
what is an equitable rate for Bremerton's delivery, but also
making those rates equitable throughout the County. Mr.
Sievers stated he believed Mr. Humphreys could commit or make
additional promises to those that are in the contract
providing additional consideration if the City has some claims
or concerns about its giving approval to the transfer.
#0761
TAPE #1144
City Council Reg. Mtg. Minutes
October 20, 1993
Page 39 of 39
M/S/C/U(Horton/Colvin) to table this hearing for one week.
With no further business meeting adjourned at 9:30 P.M.
KATHLEEN L. McCLUSKEY, City Clerk
EILEEN FITZ, Council President
City of Bremerton
KLM/EF/me
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