WASHINGTON MATERIALS MANAGEMENT
AND
FINANCING AUTHORITY
Approved Minutes
Regular Meeting of the Board of Directors
September 20, 2007
The Board of Directors (“Board”) of the Washington
Materials Management and Financing Authority (the “Authority”)
held a regular meeting at 10:00 a.m. PDT on Thursday, September
20, 2007, at the offices of Van Ness Feldman in Seattle,
Washington.
Directors Present:
Nick Ammann, Apple Computers
Mark Dabek, RE-PC
Meggan Ehret, Thomson Inc.
Mary Jacques, Lenovo
Kyle Holifield, Wal-Mart
Mike Moss, Samsung
Erik Stromquist, CTL Corp.
John Swiderski, Deer Park Computer Sales and Service
Mike Watson, Dell Computers
Also Present Were:
Walter Alcorn, Alcorn Consulting (Contractor)
Shad Pruit, State Treasurer (Ex Officio)
Jay Shepard, Dept. of Ecology (Staff)
Directors Absent:
Mark Bracking, PC Salvage
Tim McGrady, LG Electronics
Counsel Present:
Pamela Anderson, Van Ness Feldman
Marlys Palumbo, Van Ness Feldman
Tyson Kade, Van Ness Feldman
1. Call to Order
John Swiderski, Chairperson, called the meeting to order at 10:02
a.m. A quorum of Directors was present.
2. Approval of Minutes of the Regular Meeting August 16, 2007;
and the Special Meeting August 28, 2007
Discussion: The Board reviewed the minutes of the regular meeting
held on August 16, 2007, and the special meeting held on August
28, 2007.
On a motion duly made (Swiderski) and seconded (Jacques), it was:
VOTED to approve the minutes of the last regular meeting.
The recorded vote was unanimous (8-0), and the motion carried.
Mike Watson was not present for the vote.
On a motion duly made (Swiderski) and seconded (Holifield), it
was:
VOTED to approve the minutes of the special meeting.
The recorded vote was unanimous (8-0), and the motion carried.
Mike Watson was not present for the vote.
3. Financing Committee – Update on Financing Policy and
Implementation
Discussion: Mike Moss presented an update on the Authority’s
financing plan and how it would be implemented. The presentation
addressed the creation of Authority banking accounts, how the
accounts would be managed, proposed financing timeline, Board
expenses, and payment of fees. Mr. Moss also presented the
potential duties and functions of a Chief Executive Officer,
Chief Financial Officer, Treasurer, and Third Party Organization.
The Board discussed the need to have a public spokesperson to
response to public questions and comments. The Board reached
consensus that Kyle Holifield should act as the public
spokesperson on behalf of the Board.
4. Jan Whitworth – Discussion of Oregon’s E-Waste
Program
Discussion: Jan Whitworth, Oregon Department of Environmental
Quality, presented information regarding Oregon’s recently
enacted electronic products recycling program. Oregon’s
program will be overseen by the state and must be implemented by
January 2009. Oregon intends to issue a request for proposals by
January 2008 and anticipates awarding a contract to develop and
implement the program by July 2008. Oregon will contractually
impose standards to guide compliance with the statutory
requirements.
5. Operating Plan Committee
a) Discussion of Strategic Questions for Operating Plan
1) Discussion of role of manufacturers: The Operating Plan
Committee presented two options regarding the role member
manufacturers will have in collecting/recycling service delivery.
The options considered were: a) treat manufacturers like any
other entity; and b) allow manufacturers to credit pounds
collected/recycled against Authority fees and/or towards company
equivalent share within the plan (the “plan within the
Standard Plan” option). During the discussion, option (1)(b)
had general support, but the Board recognized that it may not be
beneficial for some companies.
2) Discussion of management of contractors: The Operating Plan
Committee presented five options for how the Authority can manage
the contracts associated with the operation of the Standard Plan.
The options considered were: a) hire staff to manage all
collection, transportation and processing contracts; b) write
contracts with processors to manage the entire system on behalf
of the Authority (including management of transportation and
collection); c) contract with a third-party entity to manage the
system on behalf of the Authority; d) a member manufacturer
assumes management responsibility; and e) any of options 2(b), 2(c),
and 2(d) above except the Authority manages collector payments.
On a motion duly made (Holifield) and seconded (Dabek), it was:
VOTED to adopt option 2(c) (contract with a third-party entity to
manage the system on behalf of the Authority).
The recorded vote was 7 yeas, 0 nay, and 2 abstentions (Swiderski
and Ehret), and the motion carried.
3) Discussion of collector compensation: The Operating Plan
Committee presented two options for ensuring that collectors will
be compensated “fairly.” The options considered were: a)
Authority establishes “fair” statewide compensation
amount at X cents/lb., no exceptions; and b) Authority
establishes base compensation amount of $0, requests “fair”
compensation considered on a case-by-case basis.
On a motion duly made (Swiderski) and seconded (Holifield), it
was:
VOTED to approve option 3(b) (Authority establishes base
compensation amount of $0, requests “fair” compensation
considered on a case-by-case basis).
The recorded vote was 8 yeas, 0 nay, and 1 abstention (Dabek),
and the motion carried.
4) Discussion of processing standards limiting ability to export:
Van Ness Feldman discussed the dormant commerce clause and how it
would apply to the Authority’s processing standards.
b) Discussion of Implementation (Hearing, Standard Plan, RFPs,
Hiring Staff)
Discussion: Walter Alcorn presented a draft timeline for the
development of the operating plan and the Standard Plan.
6. Presentations Regarding Financial Audits
Discussion: Board consideration of this agenda item was postponed
to a future meeting.
7. Approval to Establish Conference Call Account
Discussion: The Board considered several options to establish its
own conference call account.
On a motion duly made (Swiderski) and seconded (Jacques), it was:
VOTED to establish a conference call account and give the
Chairperson approval to pay the bill.
The recorded vote was unanimous (9-0), and the motion carried.
8. Matters to Address in Future Meetings
Discussion: The next regular meeting will be a face-to-face
meeting to be held at 9:00 a.m. PDT at Van Ness Feldman on
October 18, 2007.
9. Adjourn to Executive Session
At 1:15 p.m., the regular meeting was adjourned to an executive
session, pursuant to RCW 42.30.110, to discuss staffing and
employment matters.
The regular meeting was reconvened in open public session at 2:15
p.m.
10. Other Business
Discussion: The Board discussed the need to hire a consultant to
prepare the Standard Plan for the Authority.
On a motion duly made (Moss) and seconded (Jacques), it was:
VOTED develop a RFP for hiring a consultant to write the Standard
Plan.
The recorded vote was unanimous (8-0), and the motion carried.
Kyle Holifield was not present for the vote.
Discussion: The Board requested that Walter Alcorn develop
talking points and a news release regarding the Board’s
activities to date.
11. Adjournment
The meeting was adjourned at 2:20 p.m.