06-30-1980 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
MONDAY, JUNE 30, 1980
Mayor Westlund called the special meeting to order at 1:00 P.M., with the following
members present: Aldermen Peterson, Gruenhagen and Beatty, in addition to Mayor West-
lund. Absent: Alderman Lueneburg. Also present were: Administrative Assistant Plotz,
Rick and Jim Junker of Junker Sanitation, and Attorney Lee L. LaBore.
The Mayor explained the purpose of the meeting was to discuss the contract between
the City of Hutchinson and Junker Sanitation. The present contract will expire at
midnight today, June 30, 1980. Mr. Westlund then alluded to several options the City
had for garbage removal and stated it was his opinion that a contract with one hauler
was the best choice. The proposed contract with Junker Sanitation would cover a 10
year period and provide for an annual Board of Review.
Attorney Tom Nagel stated he represented Galen Witte of Witte Sanitation. He concurred
that one hauler was the best approach for the City, but he felt one hauler was being
given a powerful right. He questioned the fact that bids were not let for more than
one private hauler. Also, Mr. Nagel pointed out the new contract with Junker did not
provide a rate schedule for the commercial users nor did it provide for any pickup
schedule for commercial areas. Although a municipality the size of Hutchinson should
be served by one hauler, the City needs to be aware of the vulnerability the commercial
users are placed in since there is no negotiation with only one hauler. Further, he
felt 10 years was too long a time period for a contract. Competitive bidding would
enable the City to satisfy both the commercial and residential users that the best
rate and service was obtained. It suggests to the general public that some thought
and decision was put into the final contract. In closing, Mr. Nagel stated that Mr.
Witte would be interested in hauling for the commercial users but would not bid on
service for the entire City.
Attorney LaBore responded to Mr. Nagel's comments and stated the City had given much
thought to the new contract with Junker Sanitation. He pointed out it was difficult
to write a rate structure into the contract because of the diversity of the commercial
services. The City Council has the power to regulate the rates and hold a Board of
Review. Also, the City has the right to enter into a 10 year contract. Junker has
earned the right to enter into a new contract with the City based on its past perfor-
mance.
Mayor Westlund reported that Junker Sanitation had provided a rate breakdown for the
Council to review, and these rates would be reviewed annually. The rates could be
amended into the contract and changed each year, if necessary.
Following extensive discussion, it was the consensus of the Council that the refuse
contract should be awarded to one hauler, namely Junker Sanitation.
The motion was made by Alderman Peterson to enter into a contract with Junker Sanita-
tion, effective July 1, 1980, for an eight year period, with a four year option, with
an addendum for a Board of Review to be held in the month of June, with the date to
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COUNCIL MINUTES
JUNE 30, 1980
be set by the City Council, and a rate schedule for commercial accounts be attached
to the contract. The motion was seconded by Alderman Beatty, and unanimously carried.
It was moved by Alderman Peterson, seconded by Alderman Beatty and carried unanimously,
to approve the container rate schedule for the period July 1, 1980 to June 30, 1981.
Discussion was given to the rates charged the A & W Drive -In. It was determined that
no rate exception would be given to the A & W, and their charges would be based on the
type of container used and the number of pickups. During the less busy months, the
refuse pickup service would be on an "on call" basis. A letter would be sent to Mr.
Leonard Riemann from City Hall explaining the options.
Alderman Beatty moved that there would be no reduction in commercial rates for the
A & W Drive -In and arrangements would be made with A & W for an acceptable rate for
their business. Seconded by Alderman Gruenhagen, the motion unanimously carried.
An agreement was reached that the Country Kitchen would receive refuse service for
eight yards, three times a week.
There being no further business, the meeting adjourned at 2:10 P.M.
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