CC Min 1996-02-05 Jnt - Laserfiche WebLink

Browse Search

1) Staff Report; REPORT: Director of Financial Planning, February 5, 1996 Director Ponty advised that Redwood City was a member of the South Bayside Transfer Station Authority which contracts for waste disposal for its members through a ITanchise agreement. Each year the ITanchised solid waste collection agent, Browning Ferris Industries (BFI) submits a rate request application to SBTSA which hires a consultant to review that request by auditing BPI's financial records to establish the accuracy of projected revenues and expenses. Director Ponty advised that this year the independent consultant determined that although BFI asked for a 19% increase, only an 8.5% increase was justified in conformance with the ITanchise agreement. Director Ponty advised that the 8.5% was reached by adding: 3.7% 1995 revenue shortfall, 3.7% projected 1996 revenue shortfall, 2.2% increased operating costs, and -1.1 % balance due rate payers as of January 1, 1995. He added that SBTSA is recommending a 9.8% increase throughout the service area. Director Ponty advised that under the terms of the ITanchise agreement BFI was entitled to nine cents profit for each ninety-one cents of qualified costs. In response to Council questions, Director Ponty explained the projected 3.7% shortfall for 1996, and added that the ITanchise agreement entitles each side "to be made whole." If rate payers overpay, the funds are held and rebated to them; ifBFI is underpaid, it is given a rate increase. Council Members quoted from the report's list of proposed increases: one 20 gallon can, once a week pick-up will increase 46 cents per month. Council Members discussed side yard/back yard pick-ups and the impacts that service has on monthly rates, the need for a more effective "lifeline" rate for seniors and those on fixed incomes, the future of the "end of the month pick-up", and BFI proposals for eliminating the end of the month service and replacing it with alternating "green waste" and recyclable pick-ups, and the resulting need for a huge educational effort to explain the change. Council Members said they did not want to approve an increase in rates and take away a service.. Mayor Hartnett called upon representatives ITom BF1. Don Day, BFI, answered the Council's questions regarding the qualifications of the independent consultant who reviewed their books, 60% to 70% of subscribers have side or back yard pick-up, and advised that after the rate increase San Carlos would have a comparable rate to Redwood City's. Mr. Day described current legislation establishing standards for reduction of solid waste, and advised that customers' MINUTE BOOK NO. 54 Page No. 060 Special Meeting Minutes February 5, 1996 Page 8