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obsJRANDUM <br /> - ado' <br /> ,; <br /> To:— Cit Manater DoreApril 27 , 1976 <br /> From: Aaa9 atant City Manager �: d <br /> Subject:RSSTMATFT) CHSTOMFB_R.ASES_EORBFFUSE_COLLFCTTON,,_1.�7._7_7 <br /> BACKGROUND <br /> City Council in previous actions has established the principle of keep- <br /> ing refuse collection on a self-supporting basis . This policy was <br /> expressed some years ago when refuse collection costs were placed on a <br /> direct billing system and deleted from the property tax . Our contract <br /> with Great Western Reclamation provides for rate adjustments based on <br /> increases or decreases in the Consumer Price Index . <br /> The contractor has also requested a special rate adjustment due to <br /> increased costs for wages and fringe benefits which resulted from a new <br /> union contract following the county-wide refuse industry strike that <br /> occurred in the spring of 1975 . He requested an immediate $0 . 15 per <br /> water meter per month adjustment with two additional $0 . 10 adjustments <br /> to occur in the future . The City staff has recommended the $0 . 15 adjust- <br /> ment but feels that the future special labor adjustments should not be <br /> granted as they probably will be covered by increases in CPI in the <br /> future . <br /> PAYMENT TO CONTRACTOR <br /> It is estimated that payments to contractor for the 1976-77 fiscal year <br /> will be as shown below. The new contract will provide for CPI adjust- <br /> ments to occur only once a year effective July 1 , 1976 based upon the <br /> preceding CPI figures for the month of May. The estimated payment of <br /> $2 . 00 represents a total increase of $0 . 25 over the current rate of <br /> $1 .75 per water meter per month. <br /> Present rate per water meter per month $1 . 75 <br /> Estimated CPI adjustment 0. 10 <br /> Special labor settlement adjustment _0. 15 <br /> TOTAL $2 . 00 <br />