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Gallia, Jackson, Meigs & Vinton Solid Waste Management District

Policy Committee

Minutes

8/10/11

 

The Policy Committee of the Gallia, Jackson, Meigs & Vinton Solid Waste Management District met Wednesday, August 10, 2011 at 2:00 p.m.

Call to Order

Chairman, Harold Montgomery, called the meeting to order @ 2:00 p.m.  

Roll Call was taken with the following members present:  Gallia County: Harold Montgomery, James Cozza, Jimmy Allen, Barb Bradley, Lana Lane for Brett Boothe; Jackson County: Bill Sheward for Randy Heath, Greg Ervin, Roy Arthur, Tom Woltz; Meigs County: Tom Anderson,  Jon Jacobs, Marilyn Anderson, John Musser, Larry Marshall; Vinton County: Mike Bledsoe, Janelle McManis, Vicky Maxwell.  Guests included: Andy Rumpke, Bruce Downard, Tim Phelps and Nick Rupert, Jr. of Rumpke; District Staff present were Terri Marchi, and Cindy Saltsman and District Attorney, Bill Cole.

 

Old Business

 

Minutes of 7/6/11 were reviewed.  Tom Woltz made a motion to accept the minutes, Jon Jacobs seconded the motion.  All were in favor, motion passed.

 

The Policy Committee then reviewed the financial sheet as of the end of July.  (This was for informational purposes only, no vote was needed)

 

Harold Montgomery asked for our guests to introduce themselves:  Bruce Downard, Andy Rumpke, Tim Phelps and Nick Rupert all of Rumpke.

 

Harold Montgomery then stated that the Policy Committee had referred back to the Board of Directors to consider lowering the fees and go into Memorandums of Understanding with Rumpke and Waste Management.  The Board did so and sent back to the Policy Committee Resolution 0711 – C (attached as part of these minutes).  Harold summarized and said that we (the Board) have agreed to lower the fees to $1/$2/$1 and in the interim, between now and when we get that ratified we will enter into a Memorandum of Understanding with Rumpke and Waste Management.  We will still collect the $2/$4/$2 and will return back to them $1/$2/$1. Mike Bledsoe questioned the word annually that Harold read on the resolution.  Harold said he just said that and it is not in the resolution.

Bill Cole said he has been in contact with Waste Management.  Harold Montgomery then stated that the money coming from Waste Management is around $60,000.00 and the guaranteed amount would be around $25,000.00.  Before we move on, Rumpke is the key player at this point.  

Bill Cole said we have come to an understanding with Rumpke.  There is a contract on the table, an agreement with the District and Rumpke where we pay $50,000.00 per month (not set in stone yet) for consulting services.  It is structured in such a manner that it will be acceptable with EPA.  It is an authorized use of fees under the statue.  This contract can be terminated at any point by the District, just by sending a certified letter that we are terminating it.  It will be no longer than seven months because that is about how long it will take to get the ratification process done.  If the waste stream does not increase the way we thought it would warrant the $50,000.00, we can terminate it.  That is agreement number one and will be in effect seven months or until the current Plan Fee Structure is amended, whichever occurs first, or if it’s terminated by the Board by giving notice.  There will be a second contract that will come into effect immediately upon the Plan being amended as to the fees.  Therein, they (Rumpke) guarantees the District $700,000.00 per year income, a Transfer Station should they shut down, a lowered gate rate for in district trash and consulting on the Plan that has to be submitted in March 2014.  That contract will remain in effect until the new Plan that is due in 2014 is up and running.  Bill said in talking with Waste Management, they didn’t know there was another landfill in our district and they did not know that we were multi-county.  Bill said he was not giving up on them but it is going to take a while to bring them up to speed.  The numbers we are talking about with them is significantly less than what we have with Rumpke.  Harold Montgomery said he was in contact with Jerry Ross of Waste Management and he was in agreement until it went to Corporate.  Bill said he was going to continue with Waste Management and didn’t see any problems; it was just not going to be done quickly.  If the Policy Committee votes today to lower the fees we will have a contract with Rumpke no later than the first of the week.

Andy Rumpke said as part of the interim agreement, which has the ability to pro-rate the rest of the month consulting fees which in essence gives us the same financial situation as the $1/$2/$1.  We could as soon as tomorrow, if they vote today to lower the fee structure to $1/$2/$1.  We can as soon as tomorrow, start bringing our trucks from Columbus, Circleville, Fayette County, Chillicothe, and Ironton back to Beech Hollow.  For the most part the agreement is good and we hope to come to resolution and get it signed soon.

Mike Bledsoe asked Terri Marchi what she thought about everything because he respected her input.  Terri said she thought it was important to include EPA’s input as far as the Memorandums of Understanding.  As you recall Andrew Booker of EPA came and told the Board we could not continue with the contract because it was expired. He then, a couple of months later, suggested a Memorandum of Understanding concept.  Terri asked Bill if had been in contact with Andrew regarding these contracts and Bill said yes.  Terri said if we want to continue to offer programming and services as we have in the past, and to meet our 90% goal, we are certainly going to have to have money in the budget to do that.    Mike Bledsoe asked if we would be sustainable.  Terri said we still have work to do as far as defining who we are going to be going forward.  Terri said we are not in the position to continue funding to all the programs we’ve funded in the past five/ten years, there has to be some prioritization and some revision to programs.  Mike Bledsoe said that is important to him, he didn’t want to leave their Health Departments out to dry.  Mike asked if the Health Departments would still get funding.  Terri said the funding that was done in 2011 is not achievable in 2012.  Terri said we might be looking at a scenario where we temporarily reduce the funding until we can get a little more money saved up and go on a yearly basis as far as those allocations go.  Terri said coming into 2011 the District spent more than it took in.  2010 and 2011 both were unusual salary and benefit payouts due to retirement issues.  We had $80,000.00 out of salary and benefits this year for one employee who retired in February.  We are still behind the eight ball between that and the expiration of the contract in May, the decrease in tonnage.  Example, July revenue from Beech Hollow was $27,000 and June was $82,000/$83,000.  With the significant decrease in the amount of money coming in, the 2011 budget is likely going to end up spending more than we bring in.  In order to make this work, we need to prioritize what we are going to do, whether we do our recycling here or somebody else does our recycling, it could be a temporarily reduction in some of our programs.  Terri said we still have some tweaking to do, just signing this contract doesn’t mean we are done.

 

Harold told the Committee to review Resolution 0811 – A.

Harold Montgomery said on the process of ratification, we have to notify each of the entities and we hope to set the date for the public hearing today if the resolution passes.  Harold then read Resolution 0811 – A (attached as part of these minutes).  Janelle McManis said there was no mention of the minimum.  Harold said the minimum is in the Memorandum of Understanding that the Board of Directors will enter into with the landfill operators.  Tom Anderson asked if the guaranteed amounts in the 0711 – C resolution had to be written in the 0811 – A resolution and Bill said no.  Bill said there is going to be a separate contract, just like in the past, that Rumpke guarantees $700,000.  Harold said the resolution is basically saying we are going to lower the fees from 2/4/2 to 1/2/1.  Bill said the new contract says in consideration of us doing that, Rumpke will guarantee us $700,000 a year.  Harold said that would be between the Board of Directors.  Jon Jacobs made a motion to adopt Resolution 0811 – A, Roy Arthur seconded the motion.  Vote to lower the fee structure from $2/$4/$2 to $1/$2/$1 was done by Roll Call: Vicki Maxwell, yes; Matt Chesser, not present; Rex Phillips, not present; Nick Rupert, not present; Janelle McManis, yes; Jim Wooddell, not present; Mike Bledsoe, yes; John Musser, yes; Marilyn Anderson, yes; Jon Jacobs, yes; Dave Weber, not present; Larry Marshall, yes; Mike Gerlach, not present; Tom Anderson, yes; Tom Carlisle, not present; Roy Arthur, yes; Tom Woltz, yes; Dan Lockard, not present; Greg Ervin, yes; Bill Sheward for Randy Heath, yes; Jerry Hall, not present; Lana Lane for Brett Boothe, yes; Randy Halley, not present; Doug Lester, not present; Barb Bradley, yes; James Allen, yes; James Cozza, yes; Harold Montgomery, yes;  17 yes votes.  Motion passed.

 

Mike Bledsoe wanted Bill Cole to address how it needs to be passed.  Bill said normally what happens when we send the Plan in 2013 a non response is considered a no vote, for the fee structure amendment a non response is considered a yes vote.  We have to have 60 % of the total population represented by the corporations/townships voting yes, the largest municipal corporation, majority of the county commissioners and that is within 60 days after receipt.  If they get it for 60 days and do not respond, that is a yes vote.  Mike Bledsoe wanted to know what the Board of Directors had to do.  There was a bit of confusion on what the Board was supposed to do next.  Cindy Saltsman stated that the Board as a whole will not be voting on the lowered fee structure.  Vote will be done by each individual Board of Commissioners as well as each township and each municipality after the public hearing.  Resolutions will be sent from the district office to each entity and they will vote and return it to the district.  

The public hearing was set for Tuesday, September 27 @ 4:00 p.m. at the district office.

 

With a motion by Mike Bledsoe and a second by Barb Bradley, the Policy Committee adjourned at 2:40 p.m.

 

 

 

 

 

 

 

Gallia Jackson Meigs Vinton Solid Waste Management District * 1056 S. New Hampshire Avenue * Wellston, Ohio  45692 * 740-384-2164 *