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REQUEST FOR COUNCIL ACTION
<br /> October 31, 1975
<br /> Page 3
<br /> of contractor desire to obtain the consent of City to a transfer of all of their stock of
<br /> contractor to SCA Services, Inc. ( "SCA") in accordance with an agreement reached between
<br /> SCA and such stockholders. City desires to obtain contractor's agreement to certain mod-
<br /> ification in the agreement."
<br /> The refuse contractor is willing to eliminate the annual May Consumer Price Index increase.
<br /> The City would have to adjust the rate paid Great Western Reclamation only once a year
<br /> in November.
<br /> FINANCIAL ANALYSIS:
<br /> The total cost of these proposed supplemental monthly labor payments over a three-year per-
<br /> iod
<br /> is projected to be $361,000.
<br /> SUPPLEMENTAL PAYMENTS
<br /> November 1, 1975 - October 31, 1976 $ 71,000
<br /> November 1, 1976 - October 31, 1977 120,000
<br /> November 1, 1977 - October 31, 1978 170,000
<br /> TOTAL $361,000
<br /> The elimination of Great Western's refuse contract refund to the City would cost the City
<br /> $108,000 in lost revenue over the three-year period.
<br /> REFUSE CONTRACT REFUND
<br /> November 1, 1975 - October 31, 1976 $ 34,000
<br /> November 1, 1976 - October 31,1977 36,000
<br /> November 1, 1977 - October 31, 1978 38,000
<br /> TOTAL $108,000
<br /> The elimination of the annual May Consumer Price Index increase would cost the refuse con-
<br /> tractor approximately $50,400 in lost revenues.
<br /> ELIMINATION OF MAY CONSUMER
<br /> PRICE INDEX INCREASE
<br /> May 1, 1975 - October 31, 1976 ($16,600)
<br /> May 1, 1976 - October 31, 1977 ( 16,800)
<br /> May 1, 1977 - October 31, 1978 17,000
<br /> TOTAL IIKTga
<br /> The total projected increase in revenues for Great Western Reclamation is $418,600 for
<br /> the three year period (November 1, 1975- October 31, 1978) .
<br /> Supplemental Payments $361,000
<br /> Elimination of refuse contract refund 108,000
<br /> Elimination of May CPI increase 50,400)
<br /> $418,600
<br /> If the supplemental monthly labor payment is granted as of November 1975, an additional
<br /> 15¢ will have to be added to the current residential refuse rate of $2.00 to keep the ref-
<br /> use program on a self-supporting basis through- July 31, 1976. This would increase the cost
<br /> for a single family homeowner from $2.00 per month to $2.15 per month, or an increase of
<br /> 7.5%. Since September 30, 1975, when the rate was $1.80 per month, this would mean an in-
<br /> crease of 19.4%. Also, the supplemental monthly payment would impact all other residential
<br /> units such as duplex, triplex, four-plex or other user not having containerized service.
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