pages: CityCouncil/2013-07-02.pdf, 5
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CityCouncil | 2013-07-02 | 5 | June 2014). Not adopted. Rick Simonson, HF&H, gave a Power Point presentation. Councilmember Daysog noted a discrepancy in a table included in the presentation and inquired if the discrepancy translates into a rate adjustment, to which Mr. Simonson responded in the affirmative. Councilmember Daysog inquired if the annual cost of $891,200 for the C&G vehicles shown in the detail of Table 4 is depreciation, to which Mr. Simonson responded in the affirmative. Councilmember Daysog inquired if the rate calculation for this year was based upon last year; stated the cost element should not be $891,000, it should be the increment between the amount included last year and $891,000. Mr. Simonson responded in previous years, vehicles were leased and appeared on another line item for six months; depreciation was added, plus the lease expense, to reach $900,000 in depreciation; $400,000 represents six months of the C&G vehicles; another $400,000 represents six months of previous vehicles. Councilmember Tam inquired whether the amounts are entirely depreciation costs. Mr. Simonson responded the vehicles were leased in prior years, now, vehicles are purchased and being depreciated, which is why there is a discrepancy between $400,000 and $800,000; depreciation is not being double counted; continued the presentation. Councilmember Daysog inquired if other vehicles will be replaced, to which Mr. Simonson responded in the affirmative. Councilmember Daysog inquired whether depreciation would have already been captured in the 2007 or 2008 rate increase for a vehicle leased in the year 2006, to which Mr. Simonson responded in the affirmative. Councilmember Daysog inquired if the City now has 100% C&G vehicles, to which Mr. Simonson responded in the affirmative. In response to Councilmember Daysog's inquiry, Mr. Simonson stated costs are annual, not incremental; the annual revenue requirement for rate year 12 is $17.2 million; some service vehicles are not alternative fuel vehicles; annual depreciation, including $17.2 million, it is not additive. Councilmember Daysog stated a lot of information needs to be clarified; 20,000 residents are getting a big rate increase. Regular Meeting Alameda City Council 5 July 2, 2013 | CityCouncil/2013-07-02.pdf |