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Sanitation & Recycling operation could not continue as it was and changes were needed. They were faced with two alternatives, leave it in-house or privatize. An internal and external study was conducted by R.W. Beck to assist in making the final determi- nation to privatize or modernize. He indicated this was the third step in the process. The Request For Proposals would provide the final information gathering to determine cost to the City and cost to the community. Mayor Fulp continued with his inquires as to the report. He began his questioning and request for clarification in the following areas: GENERAL INFORMATION - estimated tons of solid waste for 1995; PROPOSED SCHEDULE - dates; SERVICE AREA - Jack's Disposal Service accounts; COLLECTION OPERATION REQUIREMENTS/ Implementation Schedule (CM Sanders, CM Beltran interjected their concerns) CM Hutton asked Finance Director Anna Vega if she was familiar with the Financial Revenue Account Master Balance File Sheets. Ms. Vega responded that they were ledgers provided by the current computer system. CM Hutton explained that the papers revealed that the Sanitation Department had brought in $1.7 million in revenues as of March 1996 (2/3 of the fiscal year) and exceeded its annual estimate by close to 25% of the projected revenues and at the end of the fiscal year revenues will exceed by $2.5 million. CM Hutton made a motion to withdraw proposals for privatization of the City's Sanitation Department and allow it to utilize its own refuse service, both residential and commercial, and expand its own service to supply a better service to our residents by automating the existing fleet and servicing additional commercial customers. Mayor Fulp asked of CA Biggs if CM Hutton's motion would cause an agenda problem. CA Biggs responded that the agenda title on the Notice and Call of Special Meeting allowed for CM Hutton's motion. CM Bennett indicated she was in support of the motion but felt a problem exited as there was no plan; therefore, no figures for comparison. She felt that once the RFP's were in and reviewed by Council the City could then bring a plan forward which would include where funding would come from for additional equipment. Discussion continued with additional input from CM Hutton, CM Bennett, CM Hansen, CA Biggs, and Mayor Fulp. CM Hutton conclud- ed by excusing himself from the dais. 2 MAR 2 0 1996