1968 339- 485 _ 1-8 to 4-15-1968

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to Staff. City Manager concurred procedure desired by Council for presenting claims was understood by Staff and would be carried out. Questions also asked concerning mileage expense and method of computation. It was noted Ordinance as proposed is consistent with existing Code provisions. Motion carried on roll call vote, Councilman Rosselli being noted absent. Councilman Keekley moved to adopt RESOLUTION NO. 5607 APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT AMENDING AGREEMENT BETWEEN CITY OF REDWOOD CITY AND SAN MATEO COUNTY SCAVENGER COMPANY RELATING TO INCREASE IN RATES AND METHOD OF RATE DETERMINATION FOR GARBAGE AND REFUSE COLLECTION SERVICES, seconded by Councilman Petersen. _ Staff report stated this was the first request for a rate increase having been made by this Company since contract entered into on July 1, 1957, establishing the present rates. It was noted proposed rate increases had been substantiated by the financial data prepared by Ernst & Ernst and submitted to Council for review. In reply to questioning on intent of Staff recommendation to approve rate in- crease and also provide a new basis for future rate changes, City Manager ex- plained the different basis on which the Company could appear before the Council to discuss or request further changes in rates. He advised their present "fair return" concept of operation now classified as a utility company by the PUC, and they wished to use the "operating ratio method" Paul Kelly, Attorney representing the Scavenger Company, explained more fully the reasons for requesting change in their Company's operation as to profit determination from "operation ratio method" rather than fair market return concept such as PGE & PTT on investment basis, while this Company operating primarily a service and trucking business and which the PUC has recognized as being more closely connected to the "operation ratio method." In reply to questions concerning use by City of the additional revenue which would accrue to the City from this proposed rate increase, City Clerk advised the 12--21% of revenues retained by the City was to reimburse City for the col- lection and reporting expenses. Motion carried on roll call vote, Councilman Rosselli being noted absent. Councilman Granger moved to3ntroduce Ordinance amending Section 14.31 of the Code of the City of Redwood City relating to the schedule of charges for refuse collection services, seconded by Councilman Henderson. It was noted this action necessary since the schedule of charges for the refuse and garbage collection also appeared in the Code. Motion carried. Councilman Granger moved to adopt RESOLUTION NO. 5608 AUTHORIZING AND DIRECTING PURCHASE OF CERTAIN HEREIN DESCRIBED REAL PROPERTY ADJACENT TO COMMUNITY PARK, REDWOOD CITY, CALIFORNIA; AND, AUTHORIZING AND DIRECTING PUBLICATION OF NOTICE ,. OF INTENTION OF SAID ACQUISITION, seconded by Councilman Henderson. The property referred to in this action is the so-called "Thorn" property abutting Community Park, on which the City now holds an option to purchase. 401 FEB iz -BB