12/09/1994 - Laserfiche WebLink

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the existing accumulated debt, current rates do not cover the present cost of operation by %W approximately 18°%a Councilmember Hubbard asked LAGCO to address a question regarding the lease expenses that were detailed in the report by Hilton, Farnkopf & Hobson reviewing local garbage rates- Tony Rimae, LAGCO Controller, responded that the report did not reflect the interest component of the transaction. He added that LAGCO will be responsible for doing a market rate comparability study for reasonableness of "in-house" lease charges every three years. Tom Murtha, City Attorney's office, noted that there was a provision within the revised franchise agreement that calls for this review. Councilmember Siegel asked Jon Angin, general manager -Los Altos Garbage Company, to comment on the request that was to be included in the settlement agreement for LAGCO to provide the Town with a study of alternative methods for cost allocation between jurisdictions. Angin said that it had not been included in the agreement but would be stated in a separate commitment letter and he agreed to a March 1, 1995 deadline for the report to be completed and presented to the Town. Mayor Dauber invited the public to speak, noting that the Council would be voting on several issues at this meeting includingamendments to the franchise agreement, a new rate schedule and a settlement agreement regarding the revenue adjustment owed to `r LAGCO Betsy Bertram, 11854 Page Mill Road, suggested to Council she would like to see a citizen committee formed to review garbage rates and services within the communities commonly served by LAGCO. She questioned Council on the payment method of the accumulated debt --adding that there might be a more economical way than a rate increase. Betram added that she was perplexed by the amount of building that has occurred in Los Altos Hills and the debris box rental income being less than projected. Mark Jensen, 26225 Purissima Road, commented that he represented the faction of residents who were non -garbage users and are now required to pay the base rate. He added that most have requested exemption from the garbage service but that the recycling charges are mandatory. He requested that the exemption be continued. Jensen also suggested that the Town should look at the possibility of an inverted rate structure_ Harriett O'Neill, 10440 Albertsworth Lane, noted that she was exempt from garbage can service and hoped that the exemption would be continued under the new rates. Scott Overstreet, 23200 Encinal Court, informed the Council that he has not used garbage service for over 10 years and is presently paying the base rate. He does participate in the quarterly clean-up. Overstreet added that he feels residents should pay for garbage costs because it is a valuable service to the Town. He would like to see the rates for two and December 19, 1994 Special City Council Meeting