HomeMy WebLinkAboutRes 86-71 Disposal Refuse Increase Rate APPROVED BY CITY COUNCIL
INTEROFFICE MEMORANN-M--------�— �
CITY OF PALM DESEIII
VERIFiED
DATE : JUNE 1 7 , 1986 �ifit "' $ °+1i31 c'ii'4 Cis
war
TO : CITY MANAGER , HONORABLE MAYOR AND MEMBERS OF CITY
COUNCIL
FROM : ASSISTANT CITY MANAGER
SUBJECT: PALM DESERT DISPOSAL 'S REQUEST FOR INCREASE IN REFUSE
RATES
Recommendation:
That the City Council grant Palm Desert Disposal an
across-the-board increase in refuse rates of 4 . 3% (Consumers
Price Index March to March ) and adopt Resolution No . 86- 71
reflecting the new rates .
Background:
The franchise agreement between Palm Desert Disposal Company and
the City provides that a yearly request can be made by the
company for an increase in refuse rates . The agreement provides
that "The contractor may petition the City for a rate adjustment
as a result of increases in contractor ' s cost of operations
within the City . " It also provides that the contractor shall
provide documentation relative to the average per unit cost of
service which may be tested and audited in order to make a
decision on the increase . Under terms of the agreement , if the
City and contractor cannot agree on the requested increase, then
the rate submitted to Council for approval shall be the average
of all rates for similar service being charged in the Coachella
Valley .
The company has submitted a request for an increase of 14 . 3% for
1986-87 . This is based on their claim of increased cost for the
year- ended March 31 , 1986 , over the year-ended March 31 , 1985 .
I have reviewed the figures and even though they have experienced
an increase in operation costs , I have also looked at the
revenues collected from Palm Desert customers over the past year .
I have informed Mr . Ray Burke , General Manager of Palm Desert
Disposal , that since his company also shows an increase in
revenues , attributable to Palm Desert that such can make up for a
portion of his increase in cost , I will not recommend the
requested increase , but that I feel a fair increase is the
Consumer Price Index . The City Council may recall that last
year , at this time , I did propose a change in our contract that
it grant a Consumer Price Index with provisions for extra
increases for extraordinary cost experienced by company.
•
Even with the proposed increase , the rates for Palm Desert , both
commercial and residential , are still one of the lowest in the
Valley.
6 0:7REVIEWED & CONCUR:
Carlos L . Ortega ev,
Assistant City Manager
City Manager
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