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Mayor Philcox introduced Mr. Frank Brandes, Sr., father of Councilmember <br />Brandes, visiting from Atlanta, Georgia. <br /> <br />MATTERS CONTINUED FOR DECISION <br />R.equest from Pleasanton Garbage Service for a Garbage Rate Increase <br /> Mr. Campbell stated that staff had no further report regarding this matter. <br /> <br /> }~. William Hirst, Attorney representing Pleasanton Garbage Service, <br />presented a draft resolution and work sheet proposing a garbage rate increase <br />of 27%. <br /> <br /> Councilmember Brandes explained how the various concerns of his were <br />resolved and the formula for rate increase was determined. He indicated that <br />the Council and staff had reviewed previous Pleasanton Garbage Service finan- <br />cial statements dating back to 1969, with the consent of Pleasanton Garbage <br />Service. It was determined that there was some $186,000.00 in excess profits, <br />with an after tax amount of $88,612.00, which resulted from the accounting <br />formula system previously used by Pleasanton Garbage Service. The $88,612.00 <br />will be deducted from future rate charges over the next four years. It was <br />agreed that in order to provide Pleasanton Garbage Service with a fair return <br />on investment and yet avoid any accounting questions in the future the <br />following major items would be deleted in future calculations: <br /> <br /> 1. All expenses and calculations related to the Vineyard Avenue property; <br /> 2. All expenses and calculations related to the franchise fee and covenant <br /> of non-competition; <br /> 3. All expenses and calculations related to the 2½ acres at the Transfer <br /> site on Valley Avenue extension which are not used in conjunction with <br /> the Station. <br /> <br /> Councilmember Brandes went over other matters included in the understanding <br />with Pleasanton Garbage Service including the fact that the formula agreed upon <br />would be evaluated yearly to determine how it was working. <br /> <br /> Councilmember Brandes indicated that two additional items should be included <br />in the proposed City Council resolution: <br /> <br /> 1. An annual audited financial statement shall be prepared by an auditing <br /> firm, and with a format, picked by the City. This statement would be <br /> required before any rate increase could be requested; <br /> 2. Any capital expenditures of $10,000.00 or more must be submitted to the <br /> City Manager for review and approval. <br /> <br /> Councilmember Mercer also explained how his concerns regarding increased <br />and more efficient garbage services were solved by adding an incentive program, <br />special Senior citizens rate schedule, two additional free dumping days at the <br />Transfer Station for City of Pleasanton residents with newspaper publicity <br />informing residents of the date, new rate structure on weight rather than <br />volume, and out-of-town users being assessed a higher fee than Pleasanton <br />residents. <br /> <br /> Mr. Chuck Gielow, Accountant representing Pleasanton Garbage Service, <br />further explained the formula for rate increase. <br /> <br /> 4. 6/13/77 <br /> <br /> <br />