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Murtha acknowledged that the agreement does not specifically mandate an annual review <br />but that "Rate Year" means to be reviewed each year. <br />Siegel added that the annual rate review process is vital and is anxious for an audit to be <br />conducted next year to enable Council to go through the rate setting process with the <br />assistance of audited numbers . <br />Councilmember Siegel requested that the "Summary of Key Elements for Solid Waste <br />Services Effective March 1, 1993" be included in the Franchise Agreement exhibits. He <br />added that this would help to clarify the underling basis of the rate adopted at the <br />beginning of the 10 year Franchise period. Each year the Summary of Key Elements <br />should be updated by LAGCO. <br />Regarding the issue of the term of the Franchise Agreement, Siegel stated that the initial <br />term should be short with an extension that would coincide with the time frame of <br />LAGCO's Agreement with the City of Los Altos. This would enable the Town to analyze <br />the adjustment process with the rate formula. The City Attorney agreed that the formula <br />is untested and the Town needs to approach cautiously. <br />Tryon commented that the initial document should be a well crafted document that is <br />responsive to the needs of an independent small Town and would be viable for the full <br />4 term adding that working with other cities can create difficulties. Tryon added that she <br />\w felt it was most important that Council receive a Staff recommendation regarding the <br />Franchise Agreement. <br />Council discussion ensued. It was noted that the document references the Rate Year as <br />beginning October 1 and the actual date of the new rates was March 1, 1993. The first <br />Rate Year will be an 18 month period. <br />MOTION SECONDED AND CARRIED: Moved by Siegel, seconded by Tryon and <br />passed unanimously by all members present to continue the issue of the term of the <br />Franchise Agreement to the Regular City Council Meeeting of October 6, 1993. <br />Following further Council discussion, Council requested the City Manager prepare a staff <br />report for the October 6, 1993 City Council Meeting that would address the following <br />issues: what management issues will need to be resolved regarding the initial Rate Year of <br />18 months--credits, deficits, estimated numbers, etc.; and how will the assumptions that <br />were used to establish the new rates be impacted by the extended time. <br />Mayor Johnson concluded that the Council had made substantial progress at the Special <br />Session--resolving the outstanding issue of the complaint log and giving clarification to the <br />issue of the term of the Agreement. He added that Council expected a complete Franchise <br />Agreement document with all exhibits for their next meeting and a Staff recommendation. <br />SiPT. x <br />My 2 , 1993 <br />Regular City Council Meeting <br />