Loading...
HomeMy WebLinkAbout12/06/1994Minutes of an Adjourned Regular Meeting �N, December 6, 1994 Town of Los Altos Hills City Council Meeting Tuesday,December 6 1994, 2:00 P.M. Council Chambers, 26379 Fremont Road 1. CALL TO ORDER ROLL CALL AND PLEDGE OF ALLEGIANCE Mayor Dauber called the Adjourned Regular Meeting of the City Council to order at 2:10 p.m. in the Council Chambers at Town Hall. Present: Mayor Dauber and Councilmembers Hubbard, Johnson, and Siegel Absent: Councilmember Casey Staff: City Manager Les M. Jones, 11; Tom Murtha, City Attorney's Office; and City Clerk Pat Dowd �W 2. WORKSHOP ON SOLID WASTE ISSUES The City Manager presented a brief overview of the documents before Council. These included the June 1st rate application from the Los Altos Garbage Company, the report from Hilton Farnkopf and Hobson, statistical information from LAGCO and a draft solid waste and recyclables collection franchise agreement. The City Manager also commented on the issues which resulted in the requested rate increase: debris box shortfall, debris box allocation, extension of debris box shortfall and general administrative expenses by LAGCO. A compromise was being offered between the rate increase suggested by HF&H as reasonable (45%) and that being requested by LAGCO (68%). The compromise was: approve a two year negotiated settlement offer with a 19.9% increase in rates in the first year and a 19.9% increase in the second year with CPI factored into it. Council addressed several aspects of the solid waste issue. These included: actual expenses for 1993; revenue projection adjustment; increase in LAGCO's administrative costs; agreement on allocation among all the cities; tonnage; number of houses served and base cost to each house; long-term impact to residents; renegotiation of contract; resolution to correct problem now and not wait for December 6, 1994 Adjourned Regular Meeting ` consensus among the task force; LAGCO's compensation package; debris boxes; and hr an alternate rate schedule which included all costs applied to all residents. Jon Angin, General Manager - Los Altos Garbage Company, addressed the issue of the rate increase of 68% which covered the period from March of 1993 to the present. Factors attributing to this request included: economic downturn, increase for ongoing expenses, general administrative expenses, franchise fees and revenue attrition. Mr. Angin recommended looking at the actual increase ($842,000/$894,000) rather than looking at individual line items. Concerning the debris box issue, he noted that the company still had fixed costs relating to debris boxes whether or not they were being used (i.e. lease costs). Concerning general administration expenses, Mr Angin noted that they were based on the revenue generated in Los Altos Hills. Robert Hilton, Managing Partner - Hilton Farnkopf & Hilton, referred to their final report which had been distributed to all interested parties. In response to inquiries made by Council, he suggested the question that should be asked is what the original allocation methodology had been and how it compared to the present. Referring to the allocation issue addressed in their report, it was their recommendation that the Task Force address this issue. Mr. Hilton addressed the issue of compensation and commented on the question under discussion: are the salaries at LAGCO and their parent company NORCAL reasonable? Mr. Hilton reported that five companies in the Bay Area were compared, with workmans' compensation not being included. `, Based on their review, if the ESOP (employee stock ownership plan) was included LAGCO was on the high side; however, if not included, LAGCO was low. Mr. Hilton also commented on the leasing vs. ownership of equipment and the depreciation factor. Peter Hanschen, representing Los Altos Garbage Company, noted that they knew there was a flaw in the allocation formula and they were hoping that the cities and the company could agree on allocations which would be favorable to all. He further noted that the company had entered into this contract with certain expectations. They believed changes were alright if everyone agreed to them and if the company still achieved their expectations. In response to an inquiry from Council that if all the cities agreed to a change in the employee stock ownership plan would LAGCO agree, Mr. Hanschen responded positively. However, he did note that if the Town made a change to the contract then the company would have the option to change it also. Paul Eisenhardt, representing Los Altos Garbage Company, commented on the allocation problem and the option of all the involved cities agreeing on a new allocation method. He stated, however, that the company could not reach an agreement with the Town without the agreement of the other cities. The allocation December 6, 1994 Adjourned Regular Meeting had to be the same for all. On the subject of compensation, he noted that the company had also done a compensation survey which showed that LAGCO was perhaps 5% high. He believed this was a complex issue and all issues had to be looked at, not just one component of the compensation package. PASSED BY CONSENSUS: To direct the City Manager to work with the Los Altos Garbage Company and Hilton Farnkopf and Hobson on a compromise agreement to be brought back to the Council for further discussion and approval. 3. PRESENTATIONS FROM THE FLOOR 4. ADJOURNMENT There being no further new or old business to discuss, the City Council Meeting was adjourned at 6:00 p.m. Respectfully submitted, Patricia Dowd City Clerk The minutes of the December 6, 1994 Adjourned Regular Meeting were approved at the February 1, 1995 City Council Meeting. December 6, 1994 Adjourned Regular Meeting