01271997 Regular Meeting - Laserfiche WebLink

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53 Regular Meeting January 27-, 1997 Page 4 Mr. Guerra moved to remove the Resolution from the table and for adoption and Ms. Hughson seconded the motion. Mr. Guerra asked what chance there might be of TNRCC not approving, and Mr. Taylor indicated he was confident of approval. Ms. Hughson asked for an estimated time when the transfer would occur. Mr. Taylor stated the City would hold a stockholders' meeting, dissolve the corporation, deed the assets to the City and make the application for transfer of - the CCN. The City has already received TNRCC approval for the stock transfer and could not have proceeded to this contract stage without that approval. Mr. Cox asked Mr. Taylor if the City has any liability to the claim of Barnett Baker on Page 6 of the Agreement. Mr. Taylor stated the City would have liability of that claim if determined to be valid. Mr. Baker paid for a certain number of memberships in the Haysco Water Supply Corporation (Elim's predecessor) to provide some funding for Haysco to extend a main to Southridge Estates. There was no such thing as "memberships" in Elim, and he wanted tap fees waived for a number of lots he still claimed memberships in. He originally paid $11,000 and if a valid claim, the City would owe Mr. Baker approximately 80 residential taps without tap fees. Mr. Taylor thinks Elim's position is quite sound and the City's potential to inherit a valid claim is quite small (80 tap fees x approx. $500). Mr. Guerra asked if Exhibit A was a complete list of stockholders and they agreed'to the sale of the corporation. Mr. Taylor stated it is Mrs. Hoch's obligation to provide their approval to us, and the City is in receipt of all but three at this time. We will have those prior to closing. The Council then voted unanimously for adoption of the Resolution. Mr. Hernandez introduced a discussion regarding residential solid waste collection. Mr. Guerra stated he had filed a conflict of interest affidavit with the City Secretary and left the Chambers during this discussion. Mr. Gilley stated the packet includes a proposal from BFI to renew their contract for five years with changes proposed in terms of rates and services. The Council also has been provided the types of services provided in other Cities for residential solid waste collection and the cost, a proposal for household hazardous wastes and the results of the survey from the pilot program for 95 gallon containers on San Antonio and MLK Streets. Jack Clement of BFI proposed the service change to the use of carts and once-a-week pickup. The carts can either be 95, 68 or 35 gallons. They do not propose a flexible rate of service for those who use a smaller container. If the City determines at a future time to have a system where you pay for the amount of wastes you leave at the curb, they can address that then. It has not been a successful program in other cities for many reasons. BFI will continue with the curbside program collecting glass, newsprint, cans, aluminum and two types of plastics. There is no market presently for recyclables, but they do recycle everything collected and have lost money over the past eighteen months with this program. There have been periods of time the program has been profitable. They are proposing any revenues generated from the recycling program after processing fees are paid will be returned to the City. They propose to collect brush and yard wastes and deliver to a designated place in the City for grinding and eventual composting. Composting could be marketed or used in parks, but the materials would not be landfilled. If there is a savings over the current monthly rate, that might be an avenue to support the recycling center at no additional fee to the citizens. The current rate is $6.89 for waste services and $1.80 for recycling. The CPI adjustment was diverted in September until the pilot program was completed. The Council is being asked to implement the CPI if the contract is not going to be renewed, and will be waived if we plan to renew the contract. Mr. Hart stated it would be based on $8.69 if we do not renew the contract and go to $8.89 retroactive to the first of the year, and Mr. Clement stated that was correct. The new rate would be $6.25 and $1.80 for recycling, totaling $8.05. Mr. Clement advised there are aproximately 4,700 households serviced. Mr. Clement stated March is the suggested contract date, but that date can be changed to accommodate the City if there is an understanding the contract is going to be renewed, and the 20-cent CPI charge will be waived. Mr. Hart asked on behalf of a citizen if there would not be significant savings realized if we changed from twice a week to once a week