Okay.

So we are gonna get started with the work session here tonight.

Um we have Council Platt online.

Council Norris is excused, she'll be here for the business meeting.

So we are gonna start with solid waste updates.

Great.

Good evening, Mayor and Council.

I'm Stephanie Betteridge, Assistant City Manager, and I'm joined by Michael Selkirk, senior assistant city attorney to provide you with an update on solid waste franchises.

We are joined tonight by two city staff, Samantha Nelson and Cassie Lacey, who will be here momentarily, along with our county partners, Tim Brownell and Susan Baker.

And we also have a few um representatives from our solid waste haulers in the audience who you heard clapping just a few minutes ago.

So the focus of tonight's presentation is to provide an update on solid waste franchises and the work that's been accomplished since the joint city county meeting that took place in September.

We'll also be looking to you for feedback on the priorities that have been informing our approach to solid waste management, including agreements and the solid waste hauler agreements with the solid waste haulers and an IGA with the county.

In the interest of time, we're gonna keep things fairly high level, but um please don't hesitate to pause us and ask for additional details.

So to start us off, I will be turning it over to Michael to talk about the current franchise agreement.

Uh good evening, council.

So I'm gonna start uh just with some background on our franchise arrangements.

Uh I think at least four of you were here when we did our franchise code recently.

Uh and this may be new for two of you.

So a franchise in this context is not like a fast food franchise.

Um this is an exclusive or non-exclusive right to use the city rights of way to conduct business.

So that right to do business using our streets comes with certain conditions to ensure public health and safety, to ensure that city property is properly managed and maintained, and that the city is fairly compensated for use of the streets.

So you'll remember that that when we updated the franchise code last year, we did not include in that update the solid waste franchisees.

It was just uh the other utilities that do business in our city, and that is primarily because solid waste regulation is different than the other utilities that we have in our city.

So with solid waste, the city acts like the PUC public utility commission does for the other utilities.

The city sets exclusive service areas, sets rates, and sets service levels.

So first, an exclusive service area, and this is pretty self-explanatory, but it means that no one else can provide the solid waste business service at a particular address other than the franchisee.

And that's because it would be inefficient, noisy, and harmful to streets to have multiple large vehicles serving the same neighborhood.

Similarly, the city sets rates and regulates quality of service because that exclusivity essentially creates a monopoly.

So the PUC is regulating with the other utilities.

The city is acting like the PUC with respect to solid waste.

So because of this exclusivity and rate regulation, the city's solid waste franchises are similar to the other utility franchises.

For example, there are liability provision provisions.

A lot of that looks the same, but there are some key differences.

And those key differences are up on the screen.

I'll go through them quickly.

So the first one is that the city plays a larger role with respect to what types of business the service providers can do exclusively and what they can't.

So for example, uh in Bend, the franchise is very broad, the right to provide that exclusive service.

But one of the exceptions would be the right that we all have to bring our trash to a disposal site on our own.

You're not required, for example, to have service in town.

Second, because this is a city creative monopoly, the city evaluates and sets rates to ensure that those rates and costs are reasonable.

There's currently no requirement in the code for a particular level of profit, but in the recent past, in the recent past, profits have hovered around 10%.

Third, the city sets and enforces service standards to ensure that the companies are providing services that are safe, that are fair, and that are dependable, and also that they're operating consistent with environmental loss.

And then finally, because the providers are making very significant capital investments in town and their service here, the city guarantees a rolling seven-year term, meaning that the city would have to give six years' notice before a franchise terminates.

So I mentioned quickly about compliance with environmental law.

I'm going to go over these laws very high level.

There are two relevant laws for recycling in Oregon.

One is the OTR or the Opportunity to Recycle Act.

That was enacted in 1998.

That essentially set the statewide recycling policy that we're all used to.

Requires recycling, for example, certain education and outreach.

In 2021, the legislature passed the recycling modernization act, which builds on the OTR.

And what it does is it requires the producers of some of the recyclable recyclable materials to pay into the recycling system.

And then with the money that's being paid into the system, it gives local governments and some new nonprofit organizations the ability to use that money to make our recycling system better.

So for example, there will be a uniform statewide list of recyclable materials.

And no matter where you are in Oregon, the idea is that those will be recyclable.

And then there'll be additional grant programs and education.

Local governments will continue to be the franchising authority, but there'll be more statewide consistency and uniformity in recycling.

And the haulers, the city and the county, have worked together on compliance with the OTR, and the idea is that that would continue in whatever arrangement with the RMA as well.

So back in September, the county presented to you all, along with the county commission, about a proposal slash a plan for the city and county or cities, excuse me, and county to share responsibility for managing solid waste in the region based on the respective entities' expertise.

So I'm going to go high level over what that arrangement is.