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05-23-1980 CCMV, MINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL FRIDAY, MAY 23, 1980 The special meeting was called to order by Mayor Westlund at 10:00 A.M. Council mem- bers present were: Mayor Westlund, Alderman Peterson, Alderman Lueneburg, and Alderman Gruenhagen. Absent: Alderman Beatty. Also present were: Administrative Assistant Plotz and Jim Junker of Junker Sanitation. Mayor Westlund opened the meeting by commenting on the services performed by Junker Sanitation in the City of Hutchinson and the small number of complaints received. He pointed out a new manager was recently brought into the City to handle the service here. In the last year or two, problems have related to the charges made to individual busi- nessmen for their pick up on a monthly, weekly or yearly basis. The Mayor then asked Administrative Assistant Plotz to review the contract with Junker relating to the section on billing procedure for businesses. Mr. Plotz reported the City has a base service charge per month of $3.75. Anything above this amount is billed directly by Junker. He further commented a survey had been done of other cities, and it was found they do not get involved with billing over the base charge amount. This was between the hauler and the individual business. Effec- tive July 1, 1980 there will be an increase in rates to $5.25 per month, with the City retaining 15� for costs incurred. Mayor Westlund stated he felt the City's rates were comparable with those of Willmar, Benson, Litchfield, Columbia Heights, Anoka, Robbinsdale, St. Louis Park, White Bear Lake, and Minnetonka. The $15 charge every three months is worth the cost for the service. Hutchinson is one of the few cities with in -garage service. Most cities have curb -side pick up and the cans are placed on the boulevard. Jean C. Davison Stated that in the last three years she has never had North Side Grocery residential pick up but still pays for it. They have to pay for house pick up even though they put nothing out. Administrative Asst. Reviewed the City policy for residential units, apart- ments and duplexes, as well as businesses. Jim Junker Reviewed the charges of cost of container service in Junker Sanitation Hutchinson. In comparing the figures of 1979 with those of June 1, 1980, the cost increased 8-15%.for once a week pick up. He then reviewed the background of his business. Mr. Junker stated he has no control over the charges of the landfill used by Hutchinson. Merrill Johnson Inquired about the rate charged on garbage cans. Stated 748 Juul Road he had an 8 -unit apartment building with 10 cans. Eleven Apt. Bldg. Owner people live in the building, and he pays $30 a month for residential pick up. C� F COUNCIL MINUTES MAY 23, 1980 Jim Junker Informed Mr. Johnson he would save money by using cans in- stead of containers. The number of people affects the charge, and the charge includes the use of containers. Bill Backen Stated he owns the container at his place of business but Farm & Home has paid the same rate as that for rental of Junker's con- tainer. Larry Schanzenbach Asked about the difference between what is picked up and Taco John's the compacted amount. Inquired if landfill charges for more than what is dumped there. Is he charged for yard- age or compacted yardage? Unidentified Lady Asked about rental on dumpster by the month. Compared her store with another comparable sized store and the difference in charges. Jean Davison Commented that last fall the refuse pick up changed from Davison N.Side Grocery twice a week to once a week. She had called Junker regard- ing her service but felt she got the run-around. Carl Hoeft Stated that last fall a man came into the store and asked Carly's Shoes Mr. Hoeft his opinion on the refuse service and rates for his business. He said he was satisfied. At that time the charge was $11.25, and it was subsequently increased to $27. Mr. Hayden remarked he was told what to pay, and he had no choice in the matter - either pay or no service. Jim Junker Stated the increase should have only been $5, but he could not speak for Rick Junker. Earl Fitzloff Stated that four years ago he and Junker had agreed upon a Gambles rate. If not satisfied with the rate on some other product, he would go to another business. In this case, he has no choice on refuse pick up. One year ago Junker was going to negotiate with him, but he never came back to see Mr. Fitzloff. Merrill Johnson Read a letter dated October 11, 1978 which had been sent to the City Council for consideration. It regarded a com- plaint on Junker service. Gordon Hedlund Reported that on April 28, 1980 he had talked to Junker. Country Club He felt competition enters into the matter. There is no Terr. bartering with Junker; he was told how it was and there was no choice. Galen Witte only charges $3.15, so for the difference the increase has to be passed on to the people. -2- COUNCIL MINUTES MAY 23, 1980 Jim Huffman, Area Super- Stated the restaurant is charged $125 a month for twice a Happy Chef visor week pick up. He had compared these charges with other cities in which he is also manager of Happy Chef. Hutch- inson is high in comparison. Jim Junker Stated he hadn't raised the rates to cause a problem. The increase was due to his rising costs. Merrill Johnson Asked if the City Council had considered any other con- tractor when the refuse contract was up for renewal. Were any other haulers consulted? Mayor Westlund Stated the agreement between Junker and the City was done verbally, but the contract is in writing. Commercial haul- ing is negotiated between the hauler and the business. No bids were received from any other company. Three companies turned in bids when the contract was renewed three years ago, and only one other contractor was lower; however, he would not take all of Hutchinson and provided no back yard service. Junker was willing to provide over-all hauling service, which the City felt was needed. Leonard Riemann Asked if the City has an ordinance or contract eliminating A & W Drive In others from hauling. Stated it was the general consensus of the people that bids should have been taken and others allowed to haul within the City limits. Commented Mr. Witte had been told by the City he could not haul within the municipality. Merrill Johnson Stated he would not like the City telling him how to run his business and felt he should have some say on who hauls his refuse. Jim Junker Remarked that no one is permitted to haul his/her own refuse over the streets in Hutchinson. Lee La Bore, Atty. Informed the audience the City of Hutchinson has mandatory Hopkins pick up. He then made reference to a case in which the (Rep. Junker) people took a case to court because they felt they had no voice in the hauling of garbage. The Court ruled the com- munity had the right and obligation to protect the citi- zens and provide refuse hauling for sanitary purposes. Man- datory refuse pick up is done for the control of garbage. It does not have to be put up for bid. Carl Hoeft Asked if it is honest and fair to increase the rates at Carly's Shoes a high percentage. He was speaking for 100 families, not just for one person. The ordinance states that people can come in and speak their complaint. -3- COUNCIL MINUTES MAY 23, 1980 Larry Merrick Commented he had asked a representative from Junker to Legion Post attend a meeting of the Legion held this past Wednesday at 7:00 A.M., but there was no answer and no one showed up. They had been charged for extra yards, and they wanted to know why. Jim Junker Explained the Legion needed a larger container. Larry Merrick Remarked the Legion has pick up three days a week. Asked if they would get credit for a half -full container. On the May 1, 1980 statement there was an increase from $38 to $50. The June 12 statement indicated an increase on June 1 to $79 month. In the months of January and March there were extra charges. Jim Junker Stated he could not meet with each individual business. He would talk over the phone or meet with the Council for a special meeting to discuss problems. Lyle Koehler Asked about refuse rates. OK Hardware Larry Merrick Reported he had checked with Alrick's which has daily pick up at a charge of $24, which was increased to $28; Henke's Cafe has daily pick up for $24, and was raised to $28; Woolworth's was raised from $54 to $64. The Legion's rate was increased from $38 to $50 with three pick ups a week. Wondered why the difference in price. Jim Junker Stated he was aware there were discrepancies at some of the businesses. They are trying to work them out. Leonard R iemann Commented on containers and a survey done of other towns A & W and their charges. He stated his business cannot pass on to the customers the increase in his costs because there are other businesses in town that also sell hamburgers. Carl Hoeft Asked what his percent of interest was. Carly's Shoes Jim Junker Stated there are exceptions to everything. Curt Bradford Stated the Prairie House rates had been increased from rep. Prairie House $95 to $184. This is an open hearing for people to ex- press their views, but the problems cannot be solved here. "You are going to have to make a concerted effort to deal with these people or have a problem and standardize rates -4- COUNCIL MINUTES MAY 23, 1980 so people understand what he charges and why." Jim Junker Stated he was willing to meet individually with each busi- ness and negotiate rates. Credit will be given, if due them. Mayor Westlund They had heard comments from both sides. It had been 8 his hope that much of the conflict could have been set- tled today so everyone could leave without any questions in their mind. It does not appear, however, that this will be so. It was his suggestion to set aside one day in June for the Council and Jim Junker to meet with any businessman who wished to make an appointment to discuss his/bier problems. They will listen to each complaint and try to resolve it. Lyle Koehler Asked why Junker was paying a higher landfill fee in Hutch - OK Hardware inson and if he had considered taking the refuse somewhere else. Wondered why someone else couldn't open a landfill. Mrs. Riemann Stated the landfill rates weren't out of line here, but A & W Drive In Junker's rates are higher to haul. Jim Junker It takes five years to get a landfill going. He has no control over the landfill. The local landfill is going to be checked by the government in the near future. Larry Schanzenbach Commented he had talked to other towns and knows what they Taco John's are paying for their trash removal. Other communities are paying less for more service. He had talked to Jim Junker, and he had told him the charge would be discussed. There was no discussion. These are the rates - take it or leave it. The consideration with the City is for residential; they have no say over the commercial. Junker has control over what he charges. Twenty-five per cent of the items he uses in his business have gone up over the last six months so he has to do business a little smarter to save money and keep prices down. Competition keeps his prices down. Mrs. L. R iemann A & W Drive In Stated that if Junker has exclusive rights in Hutchinson, he should have to provide a financial report of profit. Merrill Johnson Is it going to be the Council's decision that people will not have an option of another hauler? Mayor Westlund A date will be set for businessmen to schedule_ appointments to meet with the Council and Junker to discuss'problems. This action will be taken at the next Council meeting. The meeting adjourned at 11:45 A.M. -5-