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Annual Service Contract - page 40 / 43





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The result of the outsourcing is a guaranteed adjustment annually to the utility related rates. The historical Consumer Price Index used to track the annual adjustments has only risen in each of the past 20 years. Common sense would say to expect the same for the next 20 years. Contrary to what the City Council, City Management and Alternative Resources, Inc declared, local utility rates will potentially increase by 63%, simply because of the contract Fixed Service Fees.

Utility rates will undergo further increases. To pay for required upgrades it may become necessary that bond financing be presented as one strategy to pay for the needed improvements. Should bonds be needed to fund improvements, they will be tied to the Municipal Utility enterprise and thereby create another layer of rate increases.

Customer Service – is what was demanded by Mayor Podesto, promised by OMI and agreed upon by Contract. This statement appeared in the First review and cannot be emphasized enough. This was a promise made to the citizens of Stockton. The simple matter is there STILL is no Customer Service. Outsourcing today creates concerns for many citizens in many areas, not just our utility.

The Service Contract is very specific about what services OMI is to provide. OMI has continued to fail at providing any customer service or any outreach/education. This utility Service Contract is not the only private vendor contract that the City has. As was stated in the First Review…”Sunrise Sanitation and Stockton Scavenger. These providers have delivered an enormous amount of public education, outreach and assistance regarding the City’s trash and green waste program. One just needs to attend any number of City sponsored events, and these vendors [are] present giving assistance to citizens. They even have local numbers publicized on the City’s website if there are specific questions or problems.”

OMI has provided no customer service. It is our opinion that this promise of customer service was a "bone thrown to the dogs.” There was never any intent to provide customer service or a fully implemented public outreach program. At what point does

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