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Resolution Establishing Curbside Rate <br /> April 1, 1996 <br /> Page 3 <br /> To implement the system Great Western Reclamation is proposing that <br /> the City finance the carts and new vehicles through the California <br /> Environmental Finance Corporation (a non-profit entity formed to <br /> assist local government with capital financing) by issuing 12 year <br /> Certificates of Participation (COP's) . The City is eligible for <br /> tax exempt financing (which translates into lower borrowing <br /> interest rates) , which in turn will increase the savings paid to <br /> the City. The costs of COP's will be paid by GWR (subtracted from <br /> the fees paid to Great Western for the curbside program) . The City <br /> must extend Great Western's agreement for 10 years to guarantee the <br /> payment of the COP' s. In addition, the City must execute <br /> agreements specifying the terms and arranging for the issuance of <br /> the COP's for the program. <br /> The program will take several months to implement. Before the <br /> program can begin, the new trucks and carts must be ordered and <br /> delivered, and the public must be educated. The new system is <br /> expected to begin in the Fall. <br /> The rates paid by the curbside customer were considered as a key <br /> part of this proposal. The proposal includes a rate stabilization <br /> plan. The proposed rates for the curbside customer will be as <br /> follows: <br /> 1996-97 decrease of $ . 97 per month (from <br /> $14 .99 to $14 . 02) <br /> 1997-98 no increase in GWR's rates* <br /> 1998-99 no increase in GWR's rates* <br /> 1999-2000 no increase in GWR' s rate * <br /> 2000-2001 no increase in GWR's rate * <br /> Future 75% of CPI; maximum 7% <br /> * unless the CPI exceeds 4% - maximum increase of 3% <br /> The rate for FY 1996-97 reflects a recent decrease in the landfill <br /> rate (determined by the County of Orange) and an increase of one <br /> percent in the consumer price index. The County has indicated that <br /> it intends to maintain the landfill rate at the same level ($27 per <br /> ton) for the next five to seven years, although there is no <br /> guarantee of that intention. Any changes in the landfill rates <br /> will be passed through to the customer. <br /> 3 ' 3 <br />