Brief: Proposal would tie increases to price index

Thursday, Dec. 10, 1998 | 11:54 a.m.

County Franchise Services Manager Jim Spinello said commissioners will consider the plan that would allow an annual rate adjustment based on the inflation rate for Silver State Disposal Services Inc., which is owned by Republic Industries. The maximum allowable increase would be 6.5 percent a year, but if the index is greater than 10 percent, the ordinance allows renegotiations.

Under the proposal, rates would increase in July based on the previous year's price index. Spinello said the 1998 CPI is running at about 1.7 percent. If the U.S. Bureau of Labor Statistics estimate of a 1.6 percent increase holds, a rate increase of $1.86 to $118.26 per year would occur.

In previous years, rates have been increased in three-year increments. Rates went up 15 percent in 1988, 18 percent in 1991 and 19 percent in 1994 -- an average of 4.4 percent a year.

Silver State President Steve Kalish said the proposal is good for his company and for residents and businesses served by his company. The reason: with a structured rate increase in place, businesses and Silver State will be able to budget more efficiently. Kalish said tying rates to the CPI is common nationwide.

Republic is committed to spending $57 million through 1999 for upgraded facilities, vehicles and equipment, Kalish said.