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Home My WebLink AboutMINUTES - 05121992 - 2.5 TO: BOARD OF SUPERVISORS Contra FROM: SARA HOFFMAN Cra SENIOR DEPUTY COUNTY ADMINISTRATOR . / f Costa DATE: MAY 12, 1992 CO^ SUBJECT: RATE ADJUSTMENT FOR INTERIM TRANSFER STATION SPECIFIC REQUESTS) OR RECOMMENDATIONS(S) >& BACKGROUND AND JUSTIFICATION RECOMMENDATION APPROVE adjustment of the interim transfer station rate from $65.69/ton to $77.07/ton effective May 7, 1992. BACKGROUND/REASONS FOR RECOMMENDATIONS On May 5, 1992, the Board of Supervisors approved an interim gate rate of $43.05 for Keller Canyon Landfill and directed Acme Interim Transfer Station to submit a limited rate application to the Board of Supervisors so that the Keller Canyon Landfill rates could be incorporated into the transfer station rates. The transfer station has submitted a rate application which would adjust for the tipping fee and mitigation fee only. In doing so, three scenarios were presented for the Board's consideration: 1) continued transfer of 665 tons/day to Solano County (maximum allowed); 2) export at a rate of 242 tons a day (the minimum to meet put-or-pay requirements); land 3) discontinuance of export to Solano County. The rate application assumes that all transferable waste not sent to Solano County would be deposited at the Keller Canyon Landfill at a rate of$43.05/ton. The chart below summarizes the current rate and rate alternatives. CONTINUED ON ATTACHMENT: YES SIGNATURE: ACTION OF BOARD ON APPROVED AS RECOMMENDED .e OTHER ..4 Sara Roffman reviewed the staff report and responded to questions from the Board members. The Chair recognized persons in the audience who wished to speak. Dorothy Sakazaki, 737 Central Avenue, Martinez read and submitted a May 12, 1992 letter requesting mitigation fees to benefit Vine Hill Residents; Avon Wilson, of Contra Costa Solid Waste Authority urged that the cities and agencies involved receive better notice of actions before the Board, and urged everyone to work together; and Paul Morsen of Central Contra Costa Sanitary District urged the Board to delay action at this time. Supervisor Fanden read a letter from David Tam of the Sierra Club opposing the proposed mitigation fees for Keller Canyon Landfill. At the request of Supervisor Powers, Dr. William Walker reported on the capacity left at Acme Fill. Board members discussed the matter at length, and APPROVED staff's recommendations for adjustment of the Acme Interim Transfer Station rate as recommended above, and AGREED to give direction to Acme that no more than 242 tons per day be sent to Solano County, as necessary to meet minimum put or pay requirements; REQUESTED Community Development to draft a response to a letter, written by Earl Clemmons, appearing in two East County newspapers, questioning the Board's rate setting procedure; REFERRED to staff for consideration and report, a proposal for quarterly coordinated community clean-ups by Browning-Ferris Industries and the haulers so as to reduce trips to the transfer station and reduce roadside littering; and REQUESTED the Export Committee be informed and consulted on use of disposal capacity in Solano County. VOTE OF SUPERVISORS X UNANIMOUS (ABSENT ) i HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. ATTESTED c g 5 -- Phil Batche ,Clerk of the Board of Supervisors and County Administrator r BY DEPUTY cc: CAO G. County Counsel Community Development Acme Interim Transfer Station RATE ALTERNATIVES Current Rate 665 TD Solano 242 TD Solano No Solano Operating Expenses $ 24.83 $ 24.83 $ 24.83 $ 24.83 Actual Cost Adjustment 5.32 5.32 5.32 5.32 SW Planning & Enforcement 2.65 2.65 2.65 2.65 Tipping Fees 23.14* 29.50 33.44 36.30 Mitigation Fees 6.42* 8.53 7.50 6.75 Salvage Revenue ( .06) ( .06) ( .06) ( .06) Operating Ratio . 3.39 3.39 3.39 3.39 65.69 74.16 77.07 79.18 The tipping fee portion of the rate blends the current Solano rate of $25.196/ton and the Keller rate of $36.30/ton (base rate plus County surcharge). The mitigation fee portion of the rate blends the current Solano mitigation fees of $9.654/ton and the Keller fees of $6.75/ton. Please note that over the course of a year, there is no net rate impact transferring 242 tons/day or 665 tons/day to Solano County because of the yearly limitation of 88,500 tons. The first scenario, 665 tons/day to Solano, is the maximum allowed under the Portrero Hills facilities permit and is the current tonnage going to Solano County. At this rate of use, the Solano agreement reaches its yearly capacity by late September or early October. Under this scenario, approximately 420 tons/day would be received at the Keller Canyon Landfill. The second alternative, 242 tons/day to Solano, and an estimated 840 tons/day to Keller Canyon Landfill would meet the minimum put-or-pay requirements of Solano County, yet utilize the County's own landfill. This option provides the greatest future flexibility in terms of maintaining capacity alternatives. Staff does not recommend termination of export to Solano County at this time due to cost advantages and the advisability of keeping the Solano export option open. The Keller mitigation fees and surcharge would be paid by Acme Interim Transfer Station to Keller Canyon Landfill Company, who would then be responsible for forwarding its payment to the State and County on a quarterly basis. This rate adjustment would bridge the gap between opening of Keller Canyon Landfill and consideration of Acme's annual rate application, anticipated in August (Fiscal year ends May 31, 1992. Assumes 4 weeks for preparation of audited financial statements; 2 weeks for the rate application and 3-4 weeks for review and circulation). * blended rate of Solano and Alameda tipping fees and mitigation. On March 1, 1992, the Solano rate was increased from $23.15/ton tipping fee and $8.35/ton mitigation fee to the current $25.196/ton tipping fee and $9.654/ton mitigation fee. The May 5, 1992 Board order reported that Keller was a less expensive disposal alternative than Alameda County by $4.29/ton to $8.68/ton. These latest adjustments to the Solano rate make it less advantageous as well. 05/11/92 16:15 GREENE, NWAHARA & LEW, A.C. 002 GREENE, NAKAHARA LEu( ]h t!Wkpin-.4wel.Smty 645 ACCOUNTANCY CCMPORATtON i5(o(63x1• 1A71 May 11, 1942 Mr. Phil Batchelor, County Administrator County of Contra Costa Administration wilding, Floor 11 651 Pine Street Martinez, CA 94553 Re: Acmc Fill Corp. Interim Transfer Station Application for Limited Interim. Rate Adjustment to Effect the Kollor Canyon Landfill Tip Fere Tear Mr. Batchelor: On tx half of Ac ne. Fill Corporation, we have been asked to provide your office with an application to adjust Acme's interim transfer station rate:, limited to the incremental costs of transporting waste to Keller Canyon Landfill tinder various alternatives. In order to expedite the County Board tai'Supervisors' approval of this application, we have been instructed by Sara Huffman to defer introducing other issues, such as, the Altamont put-or-pay overcharge, adjusting for any volume or expense recovery shortfall, or time operating ratio allowance policy for the Keller tip fees- This application is limited to comparing the actual tip fees and mitigation fws,presently charged un waste transported to Potrero Hilds it)the tip fees and mitigation fm of transporting to Keller. The effect on the present rate is as follows: SUMMARY OF RATE CHANGFS I're:serit Fvc5 Yrojcctud ERM Alternative 1 Alternative II Alternative W Tipping Fees $ 25.146 $ 29.50 S 33.4.4 $ 36.30 Mitigation Fc= 9.654 8.5 7.50. TOTAL FEES 4.851. (' �.� 43.0 INCREMENTAL COSTS L 3.18 1 6.09 Altcrnativr,1: Transfor" an avorage uIax;uru,n tunviage of 665 tons per day to Potrero; the halanre going to Keller. Alternative ti: Trsttsfcr ar► average of 2.42 tuns per day to Potrero to avoid Put-or-Pay ovr±rehargc; the balance to Keller. Alternative tit: nira uritinae transfers to ibtre.rv; directing all waste to Keller- irrnrer�r,r,f,c net,.h.ir,,,.,rNry.MlEMatFC)FrVtf',1tJl1R11Uf+Jiir'luart} r. 05/11/92 16:16 GREENE, N';KAHPRA & LEW, A-C- eo_j ti • Mr. Phil Batchelor, County Atlmini%trmor May 11, 1992 Page 2 Acmc is preparing to file;its annual rate application on or about June 1, 1992 for its next fiscal year beginning as of that same date. Although this application omits several rate adjustments for Yolume and cost variances, Acme reserves the right to address those Issues in its annual filing. Grecric, Nakahara& Low is prc4mred to present support schedules and documents to the County staff and its consultants in an effort to rxpcdite the approval of this applit;ation. Please don't hesitate to contact us for any additional information you may need. Rr,spcc.tfull submitted, Greene, Nakahara. & Lew By Austin Lew