GREAT WESTERN RECLAMATION, INC.- RATE ADJUSTMENTS

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Residential Trash Collection Payments - Cont' d. Page 2 however , agree that commitments should be made to the two additional adjustments of $0 .10 each in the future . It is our opinion that in- creases in the Consumer Price Index will probably cover these additional costs which will run about 6% annually. We do not anticipate that the CPI will show annual increases less than those amounts . COMPARISON WITH OTHER CITIES The present rate paid the contractor is $1 .75 per month per water meter . With an increase of $0 . 15 , the payment to the contractor will be $1 .90 per month. This compares with the following rates for other cities in Orange County as shown below: CITY RATE REMARKS Anaheim $2 . 44 Actual is $1 . 55/electric meter Costa Mesa 2 .236 --- Huntington Beach 1 .92 Will be $2 . 07 July 1976 Buena Park . 1 . 75 Will be $1 . 85 July 1966 Fullerton 1 .50 Increase under negotiations Orange 1 .50 --- Garden Grove 1 .40 --- FINANCIAL IMPACT The additional cost to the City due to the $0 . 15 increase will be $6 , 000 per month or $72 , 000 per year . This is about an 8. 5% increase . The cancellation of the pay-back feature would cause a loss of revenue of $2 , 800 per month. An analysis of revenue and expenditures for current fiscal year 1975-76 including the $0 . 15 increase indicates that we will pay out $858 , 000 while receiving revenues of $840 , 000 . Revenues will be only 2.1% below expenses , which is reasonably close . An upward adjustment in our charges will be necessary to carry the program on a self-supporting basis for fiscal year 1976-77. This will be studied and recommended as part of the budget process now underway. The present rate being charged a single-family home is $2 . 00 per month. CONCLUSIONS The contractor has indicated neither approval nor rejection of the proposed adjustment , but we feel that it will be acceptable to him. All the points in the trash contract previously discussed were agreed upon by Council and the contractor. With those settled , and if these new adjustments are approved by Council , the City Attorney can complete the drafting of a revised contract that will be presented to the Council for approval at their meeting of April 19 , 1976.