LAKEPORT — City council will meet at its regular time today at 6 p.m. in City Hall to consider a 2.5 percent cost of living adjustment requested by Lakeport Disposal. At a December meeting, city staff advised council members to hold off on the adjustment until “issues” the city has with the disposal company are worked out.
A majority of council members thought that would unfairly “hold hostage” the company. Still, staff recommended the council approve the anticipated increase of the COLA (Cost of Living Adjustment) only when the issues were resolved.
The COLA is an annual adjustment in the city”s franchise agreement with the company. The company is entitled to a rate adjustment equal to 75 percent of the percentage change from the previous year based on the US Department of Labor”s Consumer Price Index.
But tonight, Lakeport Disposal could get its requested 2.5 COLA, despite three issues that remain unresolved.
Lance Butcher of Lakeport Disposal met with city staff Dec. 17 to “sort out” ten “continuing issues” the city has with their franchise agreement. “We have sorted out seven of the issues, we had hoped to resolve all ten,” City Manager Jerry Gillham said Monday.
Of the three issues unresolved, there is one key impasse. It involves a recycling center run by the garbage hauler behind Safeway. That operation is regulated by the state, which required the company to compete and bid for a franchise space there. It is not within the realm of the city”s ability to authorize “exclusive rights” and the question remains whether the city can legally impose a franchise on the separate enterprise.
If the answer is yes, city council will make a decision whether or not they wish to impose that right.
The staff report went on to say that “pros” of approving the COLA tonight include that “Lakeport Disposal can immediately begin recovering revenues to off-set continuing expenses. Further, this action could be perceived as a gesture of good will in achieving eventual resolution of all continuing issues.”
The “cons” are that city rate payers will bear an increase in their bill without the guarantee that other facets of the agreement will ever be resolved. “Additionally, it could be argued that there are numerous other facets of the agreement that have been overlooked or in fact, not in compliance, why then does this rate increase move to the head of the line in approval over all of the other issues?” the staff report states.
For the city, the question remains whether the council should “approve the COLA increase or require full resolution, thus causing further delay and possible financial hardship to Lakeport Disposal? Second, does the council wish to approve the COLA and direct the team to continue resolution discussions?”
In a letter to the city dated Nov. 15, Lakeport Disposal President Joe Butcher requested a rate increase of 2.5 percent effective Jan. 1. The new rates, once approved, include an increase from $110.81 for one yard bin to $113.58. Two yard bins will add another $5.54 to the bill, jumping from $221.63 to $227.17.
Delaying the rate increase means rate payers” future bills will be adjusted to include the new rate.
Contact Elizabeth Wilson at ewilson@record-bee.com
