City Council Minutes 1992 07 06 - Laserfiche WebLink

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happens if the Consumer Price Index, on which this adjustment will be based, is no longer published (SEE ATTACHED). I think it's important that somewhere in the agreement there be an understanding that the price would increase in the future, even if this particular index went out of business. This is not in the agreement right now. Sisk: It seems that a lot of our agreements are tailored around the Consumer Price Index or a successor. It seems that the Department of Labor is going to have a successor. Can we come up with (TAPE INAUDIBLE) would then be a successor that is being used? Griffiths: We're having trouble doing that. don't have a successor entity. I Tom Phare, Director Public Works, suggested that this is an eight year agreement. Nothing we'll be living with for the next 50 years. It's possible that if the Consumer Price Index is terminated, we could go back to that mutually agreed upon 5% at that point. Howard: Griffiths: You're saying that if the only request we have, regardless of the inflation rate, is 5%, or no deal at all. What about using the inflation rate, which is what the Consumer Price Index is part of about? The way it's written now, it discusses the Consumer Price Index. If we go to some inflation rate, we have to identify who determines the inflation rate. Mayer: We really haven't discussed if the Council is interested in the agreement as a whole, which might be a more productive use of our time. Davidson stated that the Water Committee forwarded this to Council without recommendation. An agreement like this should be decided by the entire Council. Davidson called for public comments. 13