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which appeared to be reasonable based on one year's history. This will be reviewed in <br />the future. <br /> <br /> Mayor Pico was aware that Council set residential and commercial rates. He <br />asked who controls and establishes the transfer station rates? <br /> <br /> Mr. Fialho said the City controls and establishes the transfer station rates, which <br />is included in the resolution setting the new rates. <br /> <br /> Mayor Pico asked if these rates are being adjusted or will these rates remain the <br />same? <br /> <br /> Mr. Fialho said the transfer station rates are being adjusted by 12.28 pement, <br />which is the same percentage across the board. <br /> <br /> Mayor Pico recalled that the City had discussions regarding the return to the <br />owners of Pleasanton Garbage Services, and its return is based upon a pementage of its <br />equity base, which has a minimum and a maximum of 8 to 16 pement. He asked what <br />type of formula or basis was set forth in the agreement for determining efficiency and <br />whether or not Pleasanton Garbage Services should earn 8 percent versus 16 pement? <br />How is the City assured that Pleasanton Garbage Services current operations are being <br />operated at an efficient level that might entitle it to a higher pementage than the 8 <br />percent? <br /> <br /> Mr. Hutchinson said that the agreement is very specific in addressing how the <br />calculation is done. The actual numbers are generated through accounting. If Pleasanton <br />Garbage Services generates enough revenue to offset expenses and have a profit of 8 <br />percent, it is allowed. If Pleasanton Garbage Services generates a profit of less than 8 <br />pement, it is allowed a rate increase under the formula in the agreement. <br /> <br /> If Pleasanton Garbage Services was granted a 12 percent increase in rates and it is <br />able to operate this facility accordingly and it generates additional revenue, Mayor Pico <br />wondered if the additional incremental revenue up to eight percent would go to <br />Pleasanton Garbage Services in terms of an efficiency bonus? <br /> <br /> Mr. Hutchinson said that the additional incremental revenue would go to <br />Pleasanton Garbage Services as an efficiency bonus. <br /> <br /> Mayor Pico asked if Pleasanton Garbage Services has achieved an efficiency <br />bonus in the past, and if so, how much? <br /> <br />Mr. Fialho said yes. The efficiency bonus on average was 12 percent. <br /> <br /> Mr. Hutchinson said that in the past four years, Pleasanton Garbage Services <br />actually received an efficiency bonus in the nine to ten percent ranges, but not close to <br />the 16 percent range. <br /> <br />Pleasanton City Council 17 07/20/04 <br />Minutes <br /> <br /> <br />