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HomeMy WebLinkAboutMINUTES - 08111992 - 2.14 a �y TO: BOARD OF SUPERVISORS Contra FROM: HARVEY E. BRAGDON Costa DIRECTOR OF COMMUNITY DEVELOPMENT County DATE: AUGUST 11, 1992 SUBJECT: APPROVE XNTERrX ARTE ADJUSTMENT FOR WEST PITTSBURG DISPOSAL AND DISCOVERY BAY DISPOSAL SPECIFIC REQUEST(S) OR RECOMMENDATIONS) i BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Approve interim rate adjustment of 14.9% ($2.50 per household and a $20.93 per two-yard bin for commercial) , effective September 10, 1992, for West Pittsburg Disposal, to offset tipping fee differential at Acme Interim Transfer Station. Approve interim rate adjustment of 17.4% ($2.96 per household and a $24.36 per two-yard bin for commercial) , effective September 10, 1992, for Discovery Bay Disposal, to offset tipping fee differential at Acme Interim Transfer Station. Authorize the Community Development Department to complete the Rate Application review, to establish a permanent rate for Discovery Bay and West Pittsburg Disposal and to include an analysis of implementation of programs required by the franchise. FISCAL IMPACT None to the General Fund. All costs associated with County review and processing of 'a rate application are to be paid by Discovery Bay and West Pittsburg Disposal Companies. . BACKGROUNDIREASONS FOR RECOMMENDATIONS With the closure of the East Contra Costa Sanitary Landfill on March 31, 1992, Discovery Bay Disposal and West Pittsburg Disposal began transporting franchised waste to the Acme Interim Transfer Station. The average tipping fee paid at the East County Landfill in 1991 was $50.00 per ton. The tipping fee at Acme in 1992 has been $65.69 and $77.07, respectively. In March of 1992, West Pittsburg and Discovery Bay Disposal notified the County of the need for a rate increase. The County received an official request for a rate increase on April 30, 1992 for both residential and commercial customers, the request was amended on May 14, 1992 to reflect fee increases at the Acme Interim Transfer Station. The request for fee adjustments are substantial and, therefore, requires a rate application. Under the franchise agreement, the rate application process requires a hearing before the Board of Supervisors and involves a comprehensive financial analysis. The interim rate change would allow Discovery Bay and West Pittsburg Disposal to recoup costs on the tip fee. It is expected that the full rate application process will be completed in late September or early October. County staff and representatives of the Disposal Companies have discussed this process and have concurred on proceeding with the interim rate adjustment. CONTINUED ON ATTACHMENT: YES SIGNel UR RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BDkRD COMMITTEE APPROVE OTHER 1 . SIGNATURE(S) : ACTION OF BOARD ON A,ig»s+ 11 , 1QQ9 APPROVED AS RECOMMENDED OTHER X Louise Aiello, Community Development Department, presented the staff report on the above recommendations. Supervisor Torlakson requested clarification on the timing for the establishment of a senior citizen rate. Ms. Aiello responded that the issue could be included, along with the noticing for 30 days to the customers as authorized by the franchise agreement, in the consideration of the permanent rate possibly at the end of September. Supervisor Torlakson indicated a need to accomplish that time frame and to have a discussion with the Municipal Advisory Committee on the issue of the senior rate, and the need to have the implementation of the senior rate occur with the permanent rate. Supervisor Torlakson further requested clarification on the issues of mandatory collection and a one can and mini-can structured rate. Ms. Aiello responded that a process on those issues could be prepared for Board consideration in October. Supervisor Torlakson requested that staff investigate the tipping fee being charged to the two franchises by the Acme Fill relative to the closure cost analysis that had been done for Acme Fill. Supervisor Torlakson moved approval of the staff recommendations for an interim rate along with the amendments he had outlined relative to the mini-can and one can rate, the mandatory collection, and the senior rate. The vote on the motion was unanimous. Supervisor Torlakson additionally moved a request to staff to investigate the charge mechanisms that are occurring at Acme Fill relative to the closure cost at Acme Fill. Supervisor Powers requested consideration of the possibility of having designated waste not go through a transfer station. IT IS BY THE BOARD ORDERED that the interim rate adjustments for West Pittsburg Disposal and Discovery Bay Disposal are APPROVED; and the Director of Community Development is AUTHORIZED to complete the rate application review to include a mini-can rate, a one can rate, a mandatory subscription rate, and a low-income senior citizen rate as well as an analysis of implementation of programs required by the franchise; and Community Development Department is REQUESTED to investigate the charge mechanisms at Acme Fill. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: HOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: KINIITES OF THE BOARD OF SUPERVISORS ON THE DATE BROWN. Orig: Community Development Department (CDD) ATTESTED August 11 , 1992 cc: County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS County Auditor-Controller AND COUNTY ADMINISTRATOR West Pittsburg MAC (via CDD) Sanitation'Distzict No. 19 •(via ®D) BY i DEPUTY BS:gms a 5Ab07mnRncJoc 2.