Fiscal Year 1996-97 Rates

David S. O’Brien, Director

The Physical Plant Division provides a wide range of services to the campus community including Utilities, Telephone and Motor Pool Services. In each of these services, PPD is committed to providing the customer with the lowest possible rate. This is accomplished by constantly reviewing our processes to look for internal efficiencies and continued negotiations with the various utilities providers to receive the best rate possible. This commitment has resulted in an overall decrease in utilities rates since FY 93-94 of around 12% and no increases in Motor Pool rates for five years.

The Utilities rates for FY 1996-1997 are as follows. The cost of producing chilled water continues to decline, dropping to $79 from $82.50 per kth. The refuse rate will remain at $3.35 per cubic yard in spite of increased recycling cost with the falling paper market. Unfortunately the Waste Water rate will increase from $1.40 to $1.55 per 1,000 gallons as we comply with ever more stringent environmental regulations. The cost for steam has not been determined at this time. By contract, it is indexed to the cost of gas as published by the Department of Energy, which is unavailable some time this month. However, it is anticipated that the increase may be as much as 10%. Likewise, the price for water charged to the University by GRU has not yet been determined. Negotiations are continuing, and the best estimate at this time indicates a minimal increase of only 1 or 2 cents per 1,000 gallons. The electric rate will increase by 2.5% as fuel adjustment charges are anticipated to continue to increase.

After holding the current rate structure in place for the last five years, the Motor Pool operation will experience an increase in rates for FY 1996-1997. The labor rate for repairs will increase to $35 per hour. The rental rates will also increase slightly, the cost of a car will go from $7.75 to $10.25 per day, and the cost of a van increases from $10 to $15 a day. The mileage charge of $.19 per mile will not change for either.

Despite increasing labor costs, we are able to maintain the current rates for telephone installations and maintenance while decreasing the rate for line service from $14.75 to $14.25 per line.

Be assured that PPD will continue to seek alternatives that will provide improved services at the lowest possible cost.