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'Stockton (Af ered `� 1 Million Gift' For 'Fresh Pact By Pat Donahue Of 'Me Record Staff "Delta Container offers a $1 -mi'• -lion Christmas present to be divided equally, among the people of Stockton." With those words. atturney . `ack Dozier told pckton City Council members Monday night that Delta Container, Inc., wants to take over the collection of residential and commercial trash from ;�_ current franchise holder, Stock'on Scaven- ger Association, Inc. Delta Container is offering to op- erate the collection prop,:. - at the existing rates— the .game rates Stockton Scavenger says are too low to cover its the costs of opera- tion. And. Dozier told councilmen Delta Container will agree to request an- nual rate increases equal to the rise in the consumers price index. He compared his offer to the cur- rent request by Stockton Scavenger for a 60 percent increase in residen- tial rates and between a 60 and 100 percent increase in commercial pickup rates. Dozier said the savings to Stock- ton customers would be $1 million if the council terminates its agree- ment with Stockton Scavengers and accepts Delta's offer. Stockton Scavenger spokesmen could not be reached for comment this morning. The city's agreement with Stock- ton Scavenger runs through 1981 - The firm has been collecting trash in the city for 40 years. But Dozier said the city could ter- minate its agreement by buying some $700,000 worth of equipment now used in its trash collection ser- vice. Delta Container, he said, would then buy that equipment from the city to operate the collec- tion service. City Atty. Gerald Sperry said to- day that under the terms of the agreement with Stockton Scavenger the city may terminate for breach of contract or because it has de- cided to go into the trash collection business. In the latter case, the value placed on the business and equipment by an appraiser would be the price the city would pay to end its agreement. The franchise agreement also provides that the association pay the city a fee of 20 percent of gross receipts annually. This fiscal year, (See Garbage, Back Page) Co*uned• Garbage the city expects to receive almost $500,000 from Stockton Scavenger. Councilmen did not discuss th proposal. They sent it to the Counc' Municipal Development Committ —the same committee that will con sider Stockton Scavenger's rate in-. crease request Dec. 20. Dozier said representatives of Delta Container will attend that meeting and explain its proposal inx; more detail. Delta Container, Inc., is owned by'� the same people who own Forward, Inc., the firm that operates a recy- cling and landfill operation on Aus-` tin Road. Delta Container's primary' business is hauling and disposing of industrial and other types of waste in Stockton and Manteca. At least one of Delta's owners, vice president Gregory Basso, is also a partner in Lodi Resource Re- covery & Disposal Co., a firm that is attempting to obtain the trash collection franchise operated by Sanitary City Disposal Co. in Lodi. Stockton Scavenger asked for rate increases two weeks ago. If granted, residential pickup rates would increase from $2.30 t $3.65 per month for the first can. Commercial rates would increase' from $2.30 to $S per month per can, and from $38.50 to SSS per month . per industrial box. Some 29,000 households and 2,400 commercial accounts would be af- fected by increased rates. Stockton Scavenger cited in- creased fuel, equipment, labor and insurance costs as their reason for requiring rate increases. Company officials have said the firm has been operating at an an- nual average loss of $175,000 for the past three years. A rate increase to $3.65 per month for the first residential can would place Stockton Scavenger at a rate level slightly above what it would have been had annual increases based on the rise in the Consumer .` Price Index been granted to the company during each of the past nine years, based on figures pro- vided by the company.