Okay, we are on the air.

We are on the air with our main work session.

Counselor Steven Summers is with us online.

And I think we're all seeing after an old day budget meeting.

And hopefully there's representatives there from both the companies to answer any questions specifically related to garbage collection.

So every year that this is an annual process that's pretty unique within the state of Oregon, specifically within the Portland Metropolitan area, where the haulers generate a report that presents the financial outcome of operation within the franchise area.

And this report has uh financial results that has customer data and a lot of other information necessary to determine whether the rates are adequate to return uh a rate of return that's within the franchise agreement for the haulers.

And so this year, uh you go to the max page fees, please.

Um report waste management waste connections uh and waste connections, the company that they're operating is KHUT.

Uh and the reason they do this is primarily when they acquire a company, they would like to keep it uh a local company.

In this case, they retain the name.

So it's Kahoot and it's waste management.

And Clackmas Garden does have a small piece of Milwaukee, but it's so small that it doesn't have an impact.

They still report, but we don't include those uh those results on the rate setting.

So just to clarify, that's why they're listed on a sheet.

Uh in 2025, there was some increase in residential service, residential customers as well as commercial container customers compared to the previous year.

Uh and this just right here uh is the layout of how many customers are currently provided being provided service within the city of Milwaukee, uh, both residential, which is primarily a car, container, uh commercial container, which is the front road uh container for the bigger uh volumes of waste, and then drop box and compact holes.

And the interesting thing about Milwaukee is you do have an industrial area that's very robust for the size of the city, and there are a lot of halls out of that specific area.

Uh next slide, please.

Uh and then here's kind of the franchise makeup of the city, and you can see it's broken down in two parts.

Uh, waste management does have the the lower the southern part of the the city, whereas uh Khoop does have the northern part, the brown area shit in.

And Clackmaster just had a small piece down in the southeast portion of town.

So it's labeled Hoodview on your map, but Kahoot and Hoodview are the same thing.

And waste connections, and waste connections.

K who bought hood view, did I get that right?

No, Kayw, K who bought uh shoot.

I forget the name of the two guys a long time ago.

Then they named the Hood View, and then I was hood view, and it was Khoop, and it was Candy Disposal.

Um it was three different companies.

Okay, and then Hoodview brought out this was uh two other this was the Diamonds Brothers Finance or franchise area, so it's it's kind of convoluted, but right now it's waste connections.

So one of the things that we're looking at this year, um, as we're looking at the cost increases for year year, one as one thing that's been going on for the last five or six years.

We've seen uh a significant rate increase in disposal fees, and this this year was no difference.

We have a nine percent increase in disposal fee, which doesn't seem like a lot until you look at the rate that's being charged right now for the disposal, and it's it's significant.

It does have a significant impact on customer service, the customer rates that are being charged.

Uh union driver wages are up a little higher this year, uh, and there's kind of catch-up.

And uh so we've seen three to three and a half percent, in this case 3.86% for for the uh union agreement between waste management and uh the teamsters, and we use that as a means for escalating labor.

Uh KHOOP right now is a non-union company, however, even though they're not union, they still have to pay wages that are commensurate with the union.

Uh they still have that competitive uh labor is still competitive and labor does go to the highest payers.

So in this case, they do have to, even though they're not union, they still have to maintain union weights.

And then the other thing that you're uh that we're seeing an increase is the increase in disposal fee for organic residential organic waste, uh, which is the combination of the arc-green food waste, and again, that's going up by 10% from under to 110.

And both the garbage and uh the recycling organic materials either take it.

The garbage is taken either to Metro South, which is in Oregon City, or uh uh Khoot does take it down to their transfer station down to Canby.

And then uh organic waste is taken to Metro South.

They do take organic uh food waste.

So these are the three primary rate uh increases that we're gonna be pushing through in the rate uh for the current.

Next slide, please.

And so this is the proposed uh residential collection you can see the three costs of those those additional increases would be uh the current rate we have to disposal for the image, it varies from the size of the container, and it's based on the weight, the average weight of that container.

Organics is the same for everybody because they have the same size container, and so we can't differentiate between one side of the town and the other, so it's the same rate for everybody, and labor is the same thing, it's the same cost whether you're picking up a smaller car or a larger car.

Labor is still flat across the board.

So the combination of those three costs uh for the 35-gallon car, which is the most common level of service within C Mowkey, we're gonna see an increase of a dollar sixty-seven, or in this case, four percent increase on the car rates.

So just to be clear, like for the 35 gallon, the the disposal uh fee increase of 88 cents.

That's the increase.

That's not the total of that disposal fee, right?

Correct, correct.

The disposal fee, if you were to take that 177 dollars, there's you know, I can calculate here and tell you what you average what what within that rate that you're paying for disposal, in fact, you can do a breakout it if the city council wants out what the what comprises there that at 4385, I can tell you you know what the costs are that comprise that 4385.

Um, and it's due to the level of information that's being provided by a waste manager in place in Texas with their annual reports.

So can I ask um well, I guess up, I'll hold it until you're done.

I like to go ahead.

Well, I mean, so we had a four percent increase last year as well.

Um, but your report told us we actually saved 170,000 something because of the waste uh whatever it's called, reduction act.