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Council authorizes 1.65% Livermore Sanitation rate increase after franchise-methodology review
Summary
Council authorized a 1.65% rate adjustment for Livermore Sanitation for rate year 17 after staff confirmed the index-based calculation complies with the franchise agreement; staff noted the two-year net change remains a decrease of about 7.02% after last year's larger reduction.
The Livermore City Council on May 11 voted to authorize a 1.65% rate increase for Livermore Sanitation for rate year 17, finding the proposed adjustment complies with the franchise agreement's index-based methodology.
"LSI proposes rates and it is the city council's responsibility to authorize rates by determining if the proposed adjustment complies with the methodology as described in the franchise agreement," explained Marissa Gan, interim public works manager. She said the index-based methodology applies cost-adjustment factors such as the percent change in the consumer price index, compressed natural gas pricing and motor-vehicle maintenance indices to specific categories of LSI's costs.
Gan said the proposed 1.65% increase follows an 8.67% decrease in rates last year and that the two-year net change is still a 7.02% decrease overall. Staff confirmed the calculations comply with the franchise methodology and recommended adoption of the updated Exhibit H to the franchise agreement.
A motion to authorize the rate increase was made and seconded; the council voted in favor and the measure passed. No public speakers addressed the sanitation rate during the hearing.
The council's action requires the standard notice to ratepayers; Gan reminded the council that LSI must provide at least 30 days' notice when rates are adjusted under the franchise agreement.
