8.24.030 Definitions.
As used in this chapter:
"Allowable expenses" means all reasonable costs incurred by licensees associated with the provision of solid waste, recyclable materials and yard debris collection services required herein and the cost of complying with all applicable laws, regulations or orders as now or hereafter amended. Allowable expenses as defined shall be presumed to be reasonable if, in the context of overall cost for a licensee, such expenses are: (1) comparable with the expenses incurred by a preponderance of similarly situated solid waste, recyclable materials and yard debris collection companies in the Portland metropolitan area; and (2) are based on the percentage of expenses incurred for services provided to Gresham, and Wood Village customers. Allowable expenses shall include, but not be limited to, the following:
1. Costs associated with the disposal and/or processing of all materials collected as required by this Chapter, including the costs of marketing materials to secondary markets, and all applicable fees;
2. All labor costs, directly or indirectly associated with and necessary to the provision of services required by this Chapter, including all costs associated with all contracts and collective bargaining agreements, supervisory labor, workers' compensation and all benefits including, but not limited to health care, pension, and payroll taxes;
3. All vehicle, equipment, container, and asset costs, including timely replacement, depreciation and interest expenses, lease costs no greater than those that would be charged by an independent third party to provide substantially equivalent equipment, vehicle registration fees, motor fuel, oil, tires and repairs and maintenance for such vehicles and equipment that are reasonably necessary to provide the services defined in this Chapter;
4. Performance bonds and liability insurance premiums in the amounts of coverage required by the City;
5. All administrative and management costs and expenses reasonably allocated to the services required under this Chapter, including, but not limited to, reasonable compensation, management fees, and benefits for officers and employees, payroll taxes, administrative staff, data processing, billing, rent and supplies; provided that there shall be included in allowable expenses only that portion of management fees, compensation and benefits paid by a licensee that is at a level comparable with prevailing industry standards for similar services and positions provided to or at solid waste, recyclable materials and yard debris collection companies in the metro region that are similar in size and operations to those of the licensees', and there shall be excluded from allowable expenses only that portion of management fees, compensation and benefits paid by the licensees that are in excess of such levels;
6. Utilities;
7. Training and worker safety;
8. Marketing, promotion and public education costs approved by the City;
9. Interest costs such as interest charges on the purchase of equipment or facilities, or on loans for working capital but not interest costs which are otherwise an unallowable expense as defined in this section;
10. Property, equipment or facility rental or lease costs, provided that with respect to any lease entered by a licensee with a related party, the lease costs under such lease shall only be included in allowable expenses to the extent that such lease costs do not exceed those that would be charged by an independent third party to provide the substantially equivalent property, equipment or facilities;
11. Costs for collecting and maintaining information directly and specifically required by this Chapter, costs of preparing, producing and printing all reports and information required under this Chapter (including without limitation, the fees and expenses of accountants and other outside advisors and consultants), and all costs and expenses of participating in, complying with or otherwise being subject to the accounting and regulatory processes associated with or required by this Chapter, or under other law;
12. License fees, business fees, surcharges, or any other fees collected from licensees by the City.
13. Any expense incurred in the collection, handling, processing, storing, transporting, marketing, or sale or other disposition of recyclable materials and any expense incurred in connection with education, promotion and notice of the opportunity to recycle; and
14. Any other expense determined in advance by the City and the licensees to be reasonable and necessary to the provision of the services required under this Chapter, and agreed to in writing.
Allowable expenses as defined above may be provided by affiliates of, or related parties to, a licensee provided that they do not exceed the market rate charged by third parties for similar services. If an expense of a licensee is questioned by the City, that licensee must submit proof that the expense is reasonable.
“Business or Commercial” means stores; offices, including manufacturing and industrial offices; restaurants; warehouses; schools; colleges and universities; hospitals; and other industrial, manufacturing, and non-manufacturing entities, including public bodies; but does not include a business located in a residential dwelling unless the business subscribes to commercial collection services from a franchised hauler.
“Business Recycling Service Customer” means any person or business that enters into a service agreement with a waste hauler or recycler for commercial recycling purposes.
“City” means the City of Wood Village, a municipal corporation of the state of Oregon, which shall include all territory within its existing and future corporate limits.
“City Council” means the governing body of the City of Wood Village.
“Collection service” means a service that provides for the collecting of solid waste or recyclable materials or both.
“Compensation” means any type of consideration paid for waste collection and/or management services, whether payment be made directly or indirectly, including the exchange of services between persons.
“Hazardous solid waste” means solid waste that may, by itself or in combination with other solid waste, be infectious, explosive, poisonous, caustic, toxic, or otherwise dangerous or injurious to human, plant, animal life or property; also waste as defined by applicable statute, particularly ORS 466.005.
“Person” means any individual, partnership, association, corporation, joint venture, or other public or private legal entity.
“Putrescible material” means organic materials that can decompose and may give rise to foul smelling, offensive odors or products which may create a vector or rodent problem.
“Recyclable material” means any material or group of materials that can be collected and sold or utilized for recycling.
“Recycling” means any process by which solid waste materials are transformed or changed into a reusable, new or different product so that the original waste item can no longer be so identified.
“Resource recovery” means the process of obtaining useful material or energy resources from solid waste, including energy recovery, materials recovery, recycling and reuse of or from solid waste.
“Return on gross revenues” means the quotient of the operating margin divided by the gross revenues. Expressed as a percentage, the return on gross revenues shall be approximately ten percent (10%) of gross revenues, which is consistent with industry averages for solid waste recyclable materials and yard debris companies.
“Solid waste” means all putrescible and non-putrescible wastes, including but not limited to garbage, rubbish, refuse, ashes, waste paper, cardboard, grass clippings, compost, tires, equipment and furniture; sewage sludge, septic tank and cesspool pumpings or other sludge; commercial, industrial, demolition and construction wastes; discarded or abandoned vehicles or parts thereof; discarded home or industrial appliances; manure, vegetable or animal solids and semi-solid wastes, dead animals, and including infectious wastes as defined in ORS 459.386; but not including hazardous wastes as defined in ORS 466.005 or materials used for fertilizer or for other productive purposes or which are salvageable as such materials are used on land in agricultural operations and the growing or harvesting of crops and the raising of animals.
“Solid waste management” means the prevention or reduction of solid waste; management of the storage, collection, transportation, treatment, utilization, processing and final disposal of solid waste; or resource recovery from solid waste; and facilities necessary or convenient to such activities.
"Unallowable expenses" means the following:
1. All charitable and political contributions;
2. Fines and penalties incurred by a licensee:
3. Payments for services provided by related parties to a licensee to the extent that such payments exceed the reasonable cost that would be charged by an independent third party to provide the substantially equivalent service.
4. Accruals for future unknown regulatory changes;
5. Costs associated with purchase of other companies including, but not limited to, employee stock ownership plan payments, goodwill, amortization of goodwill and premiums on key-person life insurance policies;
6. Principal or interest payments on the acquisition of solid waste, recyclable materials and yard debris collection routes; the purchase of equipment and facilities at a price that would be construed to include goodwill or a premium in excess of fair market value at the time of acquisition;
7. State and federal income taxes;
8. Attorney's fees and related expenses resulting from:
a. Any judicial proceeding in which the City and a licensee are adverse parties, unless the licensee is the prevailing party;
b. Any judicial proceeding in which a licensee is ruled to be liable due to willful misconduct or gross negligence or in violation of law or regulation;
9. Any other expenses defined as "unallowable" and approved by the Council.
“Waste” means useless or discarded materials. (Ord. 4-2009, 2009; Ord. 2-2003 § 1, 2003; Ord. 4-1993 § 3, 1993.)