HomeMy WebLinkAbout07-22-1971 AGENDA BACKUPJuly 22, 1971 r D FOR: The Honorable e of the Board of Directors VIA: SUBJECT: FACTS G. A. Horstkotte, Jr., General nager-Chief Engineer Staff port on Garbage , :, to lucre : e, Valley 'Disposal Service, 'Inc. Letter of Mr. �1n. leo F g agliano dated 27 May, 1971 requesting a� ,�. rate increase with justification Justification includes the f611owing data: (1) Income Statement for the period 1969 and 1970. (2) Number of Residential customers.. (3). Schedule of requested rates, (4) Customer/Service - Rate Revenue Schedule for years 1971-1973. (5) Detailed Multi -Family, Commercial Customer/Service - Rate Revenue Schedule for the year 1971-1973. (7) List Projected jof eed Income Statements for the period 1971-1973. Valley Disposal Service personnel with dates of employment. b. Financial Statements (1970 'Balance Sheet and Income Statement) for Valle Disposal Service Inc, Consolidated. c. Analysis of Valley Disposal Service Balance Sheet. Comparative income Statements for. 1970. e� Customer/Service -- Rate/Revenue Schedule, prep ed by staff. f Projected income statements for the period 1971-1973, prepared by staff. g Cgmparative Rate Sd edule GRASAL COMMENTS: a. The data developed in this report essentially represents information derived for financial statements for the year 1970. Ideally, data spanning a. period of five years is desirable. Page 2 • b. Equitable allocation of cost was a major problem facing staff in the preparation of this report. Valley Disposal Service, Inc. (Consolidated) contains two operating divisions; City Division (Walnut Creek) and Regular Division (Sanitary District and City of Pleasant Hill) ). Within tie y..-gular Division, the Sanitary District represents 80% of Regular Division operations. In determining allocation of cost, staff employed a"general principle of accounting that "cost should be allocated against revenue". Accordingly, it was determined that the Sani Page 3 . CO DAT IONS: A. The Board of Directors consider granting a rate increase effective August 1, 1971 for only the r nder of this y r. .:te increases for all franchisees for the years 1972 and 1973 to be determined at a later date. b. In dete ning rate increases for tbelyears 1972 and 1973,„ the Board of Directors consider negotiating n fr4;Adhise fee for franchisees of the District. The new frau Ise fee to be based upon a uniform percentage of gross revenue for eachfranchisee. c. The Board of Directors consider establishing a uniform rate structure with uniform te of service for all reside.te of the District to be effective Ja uary 1, 1972. d. The Board of Directors deny the proposed rate charges by Valley Disposal Service being not fully justified. a. The Board of Directors establish g t 19, 1971 as the date for Public Hearing to deter ne rate charges for residents serviced by Valley Disposal Service, Inc. 4 io Recommendation Approved: G A. Horstkotta, Gana ,a1 Manager-Chisf gneer Respectfully submitted, (tr. E. K. Davis strative sistant -Secretary