HomeMy WebLinkAboutMINUTES - 12051989 - 2.1 THE BOARD F SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this O der on December 5, 1989 , by the following vote:
AYES: Supervisors Powers, Fanden, Schroder, McPeak, Torlakson
NOES: Non?
ABSENT: None
ABSTAIN: None
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SUBJECT: Acme Fill Interim Transfer Station Rates
Phil Batchelor, County Administrator, referred to the
recommendation received on November 28 , 1989 from Touche-Ross
relative to establishment of the Acme Fill Interim Transfer Station
rates. He advised that the proposal had been presented to the
Central County cities and Central Contra Costa Sanitary District,
and the recommendation today from Touche-Ross was a final
recommendation, with the cities, Central Sanitary and the County
all concurring He noted, however, that Acme Fill was not in
agreement rela ,ive to the operating ratio, and had requested an
opportunity to address the Board on that issue.
Gar , Braden, representing Touche-Ross, reaffirmed the
recommendationpresented on November 28, 1989 to set the tipping
fee rate at th transfer station at $52. 22 a ton, which would
provide a 950 operating ratio for Acme Fill. He stated that the
rationale for the recommended ratio is that the County will be
providing a guaranteed return, the 95% ratio provides nearly a 12%
return on the Isset base invested, and the ratio is comparable to
regulated collection and disposal in some other counties and
cities.
Don Blubaugh advised that the Central County City
Managers have review the Touche-Ross recommendation, they are
satisfied that the recommendation is fair and equitable, and they
. strongly urge that the Board adopt the rate proposed in the
recommendation.
Jack Garner, representing the Public Managers
Association, expressed his concern relative to a counter-proposal
submitted by Acme Fill which would extend the amortization period
from the original 31 months to 55 months.
Tom Bruen, representing Acme Fill Corporation, advised
that Acme Fill does not agree with the Touche-Ross recommendation
and they are offering a compromise proposal containing three
elements which are: 1 ) a reduction of the interim transfer station
rate to $52 . 08 per ton; 2) an operating ratio of $91% instead of
95 and 3) extending the amortization period from 31 months to 55
months. He stated that Acme feels the 91% ratio is reasonable
because it is more in line with operating ratios earned by other
regulated companies. He referred to a Robert Morse Associates
Corporation reportindicating that nationwide private refuse
disposal companies average an operating ratio of 90. 3%. Mr. Bruen
commented on t e need to attract private capital to the County for
the design and construction of solid waste management facilities,
and stated his belief that the imposition of a 95% operating ratio
on Acme Fill would establish poor precedent for attracting such
capital to the County. In reference to the return on assets, he
stated that he believed that Touche-Ross has not credited the
interim transfer station with the full amount of assets required to
operate the station, and therefore the return on assets would not
be the 11. 8% stated by Touche-Ross but in fact would be 8. 4%. Mr.
1
Bruen requested that the Board approve the 910 operating ratio to
allow Acme Fill a return on assets comparable to local and
nationally operated solid waste companies.
Board members discussed the need to set a tipping fee
rate in order to allow Acme to begin operation of the interim
transfer station. After further discussion of issues presented
today, IT IS BY THE BOARD ORDERED that the rate of $52. 22 per ton
recommended by staff is APPROVED.
IT IS FURTHER ORDERED that the issues of operating ratio
and potential impact on attracting future investment in the County
are REFERRED to the Community Development Department for further
report to the Board.
cc: Acme Fill Corporation
Community Development Department
County A inistrator
I hereby certify that this is a true and correct copy of
an action taken Ovid entered on the minutes of the
Board of Supervirre on the date shown.
ATTESTED:
PHIL BATCHELOR,Clerk of the Board
of Supervisors and County Administrator
ey _ ��.Deputy
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