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HomeMy WebLinkAboutMINUTES - 10171995 - D8 TO: BOARD OF SUPERVISORS _ Contra+ FROM: VAL ALEXEEFF, DIRECTOR Costa MANAGEMENT & ECONOMIC DEVELOPMENT Courcy DATE: October 17, 1995 SUBJECT: SOLID WASTE COLLECTION RATES FOR UNINCORPORATED AREAS INCLUDED IN THE CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY FRANCHISE(S) SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ACCEPT the rates proposed by the Consultant (Hilton) for the Central Contra Costa Solid Waste Authority (CCCSWA) or the Board may wish to entertain other options (options are outlined in Attachment A). FISCAL IMPACT No identified fiscal impact to the County General Fund. BACKGROUND/REASONS FOR RECOMMENDATIONS The County as a member of the CCCSWA must decide on the rate structure for the unincorporated areas which will be serviced under the CCCSWA franchise agreements. Other member agencies have or are deciding on the rate structure for their jurisdictions. Hilton, the Consultant for the CCCSWA, has proposed for unincorporated County areas a commercial rate of $67.70 per yard per week (32% reduction) and a residential rate of $13.50 per 32 gallon can per week (22% reduction). Other options are outlined in Attachment A. Additional background on CCCSWA rates is included in a letter from Central Sanitary District which is provided as Attachment B. A summary of current rates in various cities and unincorporated areas of the County is provided in Attachment C. CONTINUED ON ATTACHMENT: YES SIGNATURE ACTION OF BOARD ON,- October_ 17-, 1995 APPROVED AS RECOMMENDED _ OTHER X The Board did not approve the above recommendation, but instead took the action as::csbbwn on the attached Addendum to this item. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE g UNANIMOUS (ABSENT _ AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Contact: Val Alexeeff (510/646-1620) ATTESTED ..October 17,: - 1995 cc: Community Development Department (CDD) PHIL BATCHELOR, CLERK OF THE GMEDA BOARD OF SUPERVISORS AND Central Contra Costa Sanitary District COUNTY ADMINISTRATOR Central Contra Costa Solid Waste Authority BY , DEPUTY DD9:JPA-RATE.BO ATTACHMENT A CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY - RATE REVIEW IMPACT OF COMMERCIAL RATE VARIATIONS ON RESIDENTIAL RATES UNINCORPORATED COUNTY Commercial %change Residential %change $ available 1 yd 1/wk 32 gal/wk if not used to offset residential 1) Current $99.55 (0) $17.40 (0) N/A Pricing 2) Cost for 46.20 (54) 14.30 (18) $0 service 3) Equivalent 77.75 (22) 13.60 (22) $130,000 reduction 4) Hilton 67.70 (32) 13.50 (22) $160,000 proposal 5) comm. 82.85 (17) 13.15 (24) $230,000 same rate by vol as resid. Discussion Residential and commercial rates have evolved over the years based on various policies and decisions. Commercial service is generally more profitable due to the lower cost of picking up the larger volume with one stop. This profitability is often used to partially offset the higher cost of residential pickup. The rate choices listed above represent some of the ways of looking at the setting or rates. The commercial customers are not provided with recycling services in the contract though some have made private arrangements. It is the intent of the County to encourage recycling in the commercial sector. #2 is the actual cost for service for both commercial and residential based on BFI and VWM estimates. The 54% and 18% figures represent only the specific size pickup indicated. #3 represents a situation where all customers would be given a 22% reduction from existing rates. #4 is the current proposal which represents the greatest incentives for recycling without any customer receiving a rate increase, through use of separate residential and commercial uniform rate structures. The small volume user is rewarded with the larger rate reductions. The 1 yd commercial customer receives the greatest reduction. #5 is the result if the commercial customer is charged the same rate per volume as the residential customer. This would result in an increase of 22% for at least one type of commercial customer. (large volume customer) The reductions shown here generally represent the maximum reductions available with this approach. RMFI:rate.doc y� to Ln lA O (n Lr) LO Ln Ln O O O (DOOOM rd 4vio0 (6 r, nnn0n d NNnd d rr � MfA MNi- LA Lou-) OOo Lr} LoLoLnOO 'kf toM Mo0Ut NnnN Ln OMLnnCY) NN0oUc O r, N N CD It NNr- �-tm NN (Dd• M VJ W W LO U) J p cD N N 1` n 'K r N N N N V) W 25 OAC � L) � L a: ooLAOOo LoLf) Ln.LOOO d LU CD47 co � oNrn � N [r: r- N- LoLO UMd• 06Ln6 (D NN00L6O c Z ;: :>:;; rn (Dn000 r, NNCod• M F- U U. td- W z LL LO Lo 0 0 LO LO ;;,, .. .. ;.:: 0. ;:: od' aiM - r: mCi. to d ':' :< 04 C4 (D ';t Mcr. cc NN (Dd Z 0. Q v, yr J CL 01 Lnin00Ls0000 Z r- M NnU ro0 o 0) Ln GC LL. a) o o 't of M r v r vi Co (ti 4- 0) tMnd -- (ooaaa -- co N N (D d N N (D d Z pC ' </> v> <v> � «r <r> <n <n W U � y y 'U � N y Q N y E E O u O U d �c •x _%e -14 _,.-z Jat �° x x -le -lc -!4 _lz E +� aL° c a 0 0 U r M r M r M a r M r M r M U c`o � c`v c`9 m c`B cyo cy0 c`0 cy0 cyc c`(s z � r r^• M m co (D r e- M M (D (D y 4 ATTACHMENT C to 1- N 0) C 4 m z z � N Z z #> 0000 to0000 Qto0to0 co (DN (pN N 'tN I* — r- NNM � O 1� 00 N 4 a; •- (p v> v> a> a> v> v). fn a> v> Q COO cl) W >` ~ .j W ? WOOto OuOOWO QM1' 0N MO - Met 00 (p Cfl to M CO 00 •- V Z — (MND r- � N � M y W Q U> a> in W> yr U> v> U> Q> ` H N W W Q U Q W 0 LOOOLO U) tsOtnO 5 W Q M n 0 O I- to — 00 qt N (fl n M I� 06 N 4- coco 0 Q D (n LLfl � W C=7 z .E V O Q U. O0000 ,00000 co O. Q 00 0 It O 0 co v> v> U> u> u> v> a> v> � O J Q Z v <> 000000000 ` » �t 00 O [t �� f-, to O 0o M ,O cc LL <:: :» Q >:p>. z I (MNIt N .- M O Z co v> v> v> v> _ U> v> v> v> v> W V co . � c a' c (1) J a) > U i cp i a) i a) co ++ �. co p 4; - co p co a c m ? �+ ' V p ' 0: M CD"p 'd a) O O'p � p Q a co cc cna) w U c c c c U c c c c m � UUUC) cUUUU � .- N N � .- N � N v Q Attachment B Central Contra Costa Sanitary District 5019 Imhoff Place,Martinez,California 945534392 00 , -7211 Au ust 24 1995 ROGER J.DOLLY y General Manager RECEIVED Chief Engineer CONTRA COSTA COUNTYKEA`TONL.ALAI Cou»sel for the District AUG (510)938-1930 Director 81995 JOYCE E.MURPM' Mr. Val Alexeeff, Secretary ofthe District Growth Management and Economic GROWTH MANAGEMENT AND Development Agency ECONOMIC DEVELOPMENT AGENCY 651 Pine Street, North Wing, 2nd Floor Martinez, CA 94553 Dear Val: In accordance with the solid waste franchise transition agreements the County and Central San adopted on August 8 and August 15, 1995, respectively, the County will franchise the unincorporated central county areas, excluding Pacheco, Clyde and North Concord, through the Central Contra Costa Solid Waste Authority (Authority) beginning March 1, 1996. The transition agreements only include those unincorporated areas historically franchised by Central San. Three issues have surfaced regarding areas outside Central San's boundaries that may have rate implications in the new solid waste contract: 1 . The unincorporated community of Canyon is contiguous to the Authority's service area. However, since Canyon is not part of Central San's franchise area, (the community uses septic tanks) it was not included in the transition agreement. Please let us know if the County intends to franchise Canyon through the Authority. 2. Authority Board Member Gail Bishop has requested that the unincorporated area east of San Ramon along Tassajara Road be included in the Authority's service area. This area also is not currently franchised by Central San, and therefore was not included in the transition agreement or in the Request for Proposals. Valley Waste Management (VWM) and possibly others are currently servicing homes in this area. Based on information obtained from Member Bishop and Harriette Heibel of VWM, we have prepared a draft map outlining the area in question (see Attachment A, Southeast Border Detail.) Please let us know if the County intends to franchise this area through the Authority and, if our map is incorrect, please provide more accurate information to define the boundary of the unincorporated area in question. 3. The unincorporated Pleasant Hill BART Station area is currently included in the transition agreement. However, it is our understanding that the Local Agency Formation Commission may annex this area to the City of Pleasant Hill or the City of Walnut Creek. If annexation occurs, there would be a shift in a portion of the collection revenue from the Authority to the City of Pleasant Hill's franchise area. Alternatively, if this area goes to the City of Walnut Creek, it could cause a shift of revenue between the unincorporated areas and Walnut Creek. In either case, a shift in revenue allocation could cause an adjustment in rates for areas that the ® Rec,ded Paper Mr. Val Alexeeff, Director Page 2 August 24, 1995 County represents. Please keep us apprised of the developments on this issue and let us know of any Board of Supervisor action taken for the Authority's consideration in future rate-setting. Ideally, these issues should be resolved as soon as possible so that any necessary revisions to the solid waste contract can be incorporated prior to the Authority's consideration of approval on September 14, 1995. We are working with BFI and VWM to identify the potential impacts, if any, on the new contract and implementation of service if new areas are added to the Authority's service area. We will let you know of any complications that we believe may be encountered so the County has as much information as possible for making their decision. Along with these aforementioned solid waste franchise issues related to the County, I am sending for your information, a summary of the twelve rate issues/consensus which culminated from a series of three meetings with the four cities in our franchise area and the County, and the resulting new rate schedule (see Attachments B and C, respectively). We anticipate that the Central Contra Costa Solid Waste Authority will adopt the new rate schedule with approval of the new franchise contracts on September 14, 1995. Please review the rate schedule. Due to the stringent time requirement, we are requesting that you notify Bob Hilton of any substantive.changes as soon as possible. if there are no changes, please so advise Mr. Hilton by August 31, 1995. Mr. Hilton can be reached at (510) 713-3270. We are appreciative of your input throughout this rate-setting process. Moreover, your cooperation in helping us maintain our tight timeline is also appreciated. If you have any questions, please call me at 229-7305. Sincerely, Xaulsen Deputy General Manager EJ:dp Attachments cc: Fred Davis, CCCSWA Mary Fleming, CC County Janet Schneider, Walnut Creek CCCSD Board of Directors Kent Alm, CCCSD Roger Dolan, CCCSD Elaine Jacobs, CCCSD - Joyce Murphy, CCCSWA Secretary ADS/Morsen 3A/Alexeeff.1tr \ a� d d � � '� ♦♦ , a� 00 \ ♦ ♦ \ ♦ o T \ O'J \ V G oy ♦ i ♦ t . .r `�•��.-;+kms,- � .- - ATTACHMENT B CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY GARBAGE COLLECTION RATES SUMMARY OF CONSENSUS ON ISSUES ISSUE CONSENSUS 1 . Area wide or • Obtain best jurisdictional data jurisdictional rates • Area-wide commercial rates in Lamorinda • Consider a uniform rate reduction in Lamorinda 2. Sector rate setting • Residential • Volume based for residential and for commercial • Commercial • Jurisdictional based rates • Uniform commercial rates for Lamorinda • Uniform commercial rates for Danville and County 3. Area wide or • Area-wide rates jurisdictional rates for • Allocate expenses and revenues to jurisdictions drop box 4. Hard-to-service areas • Price for hard-to-service customers should be based on average of current hard-to-service rates • In Orinda, standard customers and new hard-to- service customers will be billed at the same rate; existing hard-to-service customers will be billed hard-to-service rates • In Danville and unincorporated areas, standard customers and existing hard-to-service customers will all receive full rate cut; new hard-to-service customers will pay the same rates as other hard- to-service customers, however, it is not expected that there will be many new hard-to-service customers • In Lafayette and Moraga, standard customers and existing hard-to-service customers will receive full rate cut; the rate for new hard-to-service customers will be frozen if new cost is greater than or equal to the current rate • A phase out plan should be conceptualized by which rates which are not consistent with the consensus cost of service approach can be normalized; then rates include frozen rates and the Orinda "new hard-to-service" customers • Maintain the current premium for hard-to-service customers in Orinda ISSUE CONSENSUS 5. Backyard service • Central San and Lamorinda will determine the level of interest through a mailer and the best method for providing the service • Backyard service, if provided, should include refuse, green waste, and recyclables • Staff should work further with BFI/VWM to attempt to get better prices • Consider competitive bidding of the service • In Lafayette and Orinda, backyard service will be offered at cost • In Danville and Moraga, backyard service will not be offered 6. Municipal service • Free "normal" municipal services to all four cities/towns and the County for existing facilities • Cities, towns, and County pay for extraordinary service (disaster clean-up, etc.) 7. Public agency charges • Distribution of charges as presented is acceptable 8. Rate contingency • A rate contingency of 3 percent will be established 9. No green-waste service • Offer discount to "no yard" (townhome) Discount customers only • No hard-to-service premium 10. No recycling-service • No discount will be offered discount • No hard-to-service premium 11 . Mini-can rate • Provide between a $1 to $1 .40 reduction from the 32-gallon can rate 12. General clean-up • Danville will retain three scheduled clean-ups per events year • Remaining jurisdictions will receive on-demand clean-up services Note: Franchise agreement provides for notice to collector each January for deciding our scheduled or on-demand clean-ups. ADS/Morsen 3A/Finalrat.ltr ATTACHMENT C MONTHLY RESIDENTIAL COLLECTION RATES JURISDICTION RATE CAN SIZE ADDITIONAL SERVICES Bay Point (BFI) $16.75 32 gal. 2 cans trimmings Concord $21 .25 40 gal. 2 bags trimmings South East $18.00 32 gal. 1 can trimmings Concord Alhambra Valley/ $21 .50 32 gal. 1 can trimmings Franklin Canyon Danville $17.40 32 gal. 2 cans trimmings Lafayette $21 .35 32 gal. 2 cans trimmings Moraga $18.35 32 gal. 1 can trimmings Orinda $20.50 32 gal. 1 can trimmings Walnut Creek $17.85 32 gal. Clayton $26.75 32 gal. 2 cans trimmings San Ramon $15.70 32 gal. Trimmings included Pittsburg $20.00 32 gal. 2 cans trimmings Rodeo $16.60 32 gal. 1 can trimmings Pacheco/Clyde $15.15 32 gal. 1 can trimmings Mountain View $18.55 32 gal. 1 can trimmings Martinez $18.94 32 gal. Unlimited trimmings Pleasant Hill $21 .20 32 gal. 1 can trimmings Antioch (BFI) $21 .90 32 gal. 3 cans waste/trimmings Bay Point $20.80 32 gal. (Garaventa) Discovery Bay $20.75 32 gal. (Garaventa) Ironhouse $19.30 32 gal. Antioch East $19.30 32 gal. Kensington $16.25 32 gal. Rate information gathered from various sources including Central Contra Costa Sanitary District, CCCSWA, telephone conservations. mg2:resrates. I ADDENDUM TO ITEM D.8 October 17, 1995 Agenda Subject: SOLID WASTE COLLECTION RATES FOR UNINCORPORATED AREAS INCLUDED IN THE CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY FRANCHISES(S) The Board considered the recommendation to accept the rates proposed by the Consultant for the Central Contra Costa Solid Waste Authority, and other options as outlined in Attachment A. Val Alexeeff, Director, Growth Management and Economic Development Department, and Mary Fleming, Community Development Department, presented the staff's recommendations. Speaking on this matter was: Paul Morsen, Deputy General Manager, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez. Following discussion by the Board, Supervisor Smith moved that the Board accept Rate Variation No. 5 (on Attachment A). He further moved that service in the unincorporated area east of San Ramon along Tassajara Road be referred to the Solid Waste Sub-Committee, as well as the franchise, rate and automation issues in Rodeo and Mt. View. Supervisor Smith further requested a report on those issues be brought back to the full Board with recommendations from the sub-committee. Supervisor Bishop seconded the motion. Board Members being in agreement, IT IS BY THE BOARD ORDERED that Option #5 on Attachment A of the staff report is APPROVED; and REFERRED to the Solid Waste Sub-Committee for report back to the Board, the issues stated in Paul Morsen's letter of August 24, 1995, and the issues of the franchises, rates and automation in Rodeo and Mt. View areas.