Saratoga News

Saratoga set to announce Green Valley settlement

Five percent rate increase will probably be announced

Conflict lasted two years

By Sarah Lombardo and Clarence Cromwell

The lawsuit against the West Valley cities of Saratoga, Los Gatos, Monte Sereno and Campbell by Green Valley Disposal Company, Inc., of Los Gatos is nearing an end. After about two years of talks, a settlement agreement between the company and Saratoga is expected to be announced at the July 2 City Council meeting at 7:30 p.m. in the Council Chambers at 13777 Fruitvale Ave. Monte Sereno's approval of a settlement agreement is scheduled for July 15.

Saratoga city officials said they are happy with the settlement, which is purported to involve payment of disputed fees by the city to Green Valley and an increase in residential and commercial garbage rates of up to 5 percent in all West Valley cities except Los Gatos.

In its complaint, Green Valley charged that the West Valley cities violated their contract with the waste disposal company when the city "diminished or totally disallowed known costs" incurred by the company in its service and refused to adhere to a profit agreement after a performance audit in 1994. The company was originally asking for $910,000 in "shortfall" payments from Saratoga, Monte Sereno, Los Gatos and Campbell combined. It is not known how much, if anything, West Valley cities have agreed to pay.Before city councils can ratify the agreement, managers at Green Valley and at Guadalupe Landfill must accept their respective 60-page agreements, which Interim City Manager Larry Perlin said he expected to happen without a problem.

The agreement wraps up years of contention, folding the lawsuit and Green Valley's current trash-rate application into one settlement. The rate dispute started when Green Valley and Guadalupe sued the cities in August 1995, alleging that the approved trash rates did not allow an agreed upon margin of profit. The company's original contract allowed it to charge customers for its costs, plus a 5 percent profit, but the company and each city had a different idea of what costs could be legitimately charged to customers.

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