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