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Home My WebLink AboutMINUTES - 07131993 - 2.6 TO: BOARD OF SUPERVISORS FROM: HARVEY E. BRAGDON � �. a; Contra DIRECTOR OF COMMUNITY DEVELOPMENT Costa DATE: JULY 13, 1993 -' __r County SUBJECT: APPROVE INTERIM RATE ADJUSTMENT AND MINI-_CAN SERVICE FOR WEST PITTSBURG AND DISCOVERY BAY FRANCHISE AREAS SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ° Approve interim rate adjustment of 3 .20%, Consumer Price Index (CPI) , as allowed under Section 10 of the Franchise Agreement for Discovery Bay and West Pittsburg Disposal. Adjustment applies to residential and commercial accounts. Rates will be effective 30 days after customer notification as per Section 17 of the Franchise Agreement. ° Approve implementation of residential mini-can (20 gallon) service at a 20% discount of residential single can (32 gallon) service for Discovery Bay and West Pittsburg. Mini- can service consists of one (1) 20 gallon container plus one Container (32 gal) of brush, and curbside recycling. Direct staff to require the Contractor to provide services pursuant to the 'Franchise Agreement as follow: 1. As per Section 14 of the Franchise Agreement, to conduct a survey of Customer Satisfaction, for Discovery Bay and West Pittsburg residential and commercial accounts. ; The content of the survey shall be subject to review by the Director of Community Development and MACs for Discovery Bay and West Pittsburg. The Director of Community Development shall have final approval of the survey. The survey shall be completed by September 30, 1993 . 2 . As per Section 18 of the Franchise Agreement, to include in residential curbside recycling program, corrugated cardboard. Inclusion of corrugated cardboard in curbside program shall be effective within 60 days of Board approval. 3 . As per Section 21 (b) of the Franchise Agreement, to participate with the Discovery Bay and West Pittsburg MACS for the purpose of .developing public information and collection options for household hazardous waste. The Director of Community Development shall have final approval of all options. CONTINUED ON ATTACHMENT: YES SIGNATU ACTION OF BOARD ON July 13, 1993 APPROVED A MMENDE OTHER APPROVED the recommendations set forth above; and ACKNOWLEDGED receipt of 'F1 ter on behalf of Discovery Bay Disposal and West Pittsburg Disposal on this matte VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT - - - TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Belinda Smith (510/646-1238) ATTESTED July 13, 1993 cc: Community Development Department (CDD) PHIL BATCHELOR, CLERK OF Val Alexeeff, Director-GMEDA THE BOARD OF SUPERVISORS Garaventa Enterprises (via CDD) AND COUNTY ADMINISTRATOR West Pittsburg MAC (via CDD) Discovery Bay MAC (via CDD) BY0,164, '�� , DEPUTY 939v\bo\RateAdj.Can . 97 s Approve Interim Rate Adjustment & Mini-Can Service . for W. Pittsburg & Discovery Bay Franchise Areas Continued - Page Two 4. As per Section 14 of the Franchise Agreement, to provide to customers information on rates, service options, payment options, days of collection, the amount and manner of refuse to be collected, service level, types of recyclable materials collected, seasonal cleanups, and inquiry/complaint, etc. 5. As per Section 19 of the Franchise Agreement, to work with the Discovery Bay Municipal Advisory Council to . develop a Community Clean-up Program. FISCAL IMPACT None to the General Fund. All costs associated with approval of the above adjustments and services are considered pass through costs. BACKGROUNDJREASONS FOR RECOMMENDATIONS The request for CPI adjustments are allowed under the franchise agreement. The adjustment is being processed at this time since policies and procedures for rate review are still under development. It should be noted that the CPI adjustment has been applied to the overall rate, including pass through costs, therefore, an adjustment to the CPI will be made at the time of rate review. As per Board direction, staff has been working with the hauler and the MACS to develop a senior rate. Through discussions with the MACS it was concluded that a mini-can rate would be more useful than a senior rate to the communities, since it would apply not only to seniors but to others within the community, such as the physically impaired and single residents. The mini-can therefore, would replace a senior rate. The mini-can service includes brush service of one 32 gallon can. The continuance of brush service is consistent with other jurisdictions with mini-can service and is consistent with the green waste collection program detailed in the County's Source Reduction and Recycling Element. The mini-can service also includes curbside recycling. The discount for the mini can is the same percentage approved by the Board for the senior can rate. Staff will monitor other jurisdiction mini can rates to determine if an adjustment to the discount is necessary at the time of rate review. The Municipal Advisory Councils for Discovery Bay and West Pittsburg were apprised of the CPI adjustment and mini-can service. Both MACS agreed to the implementation of mini-can service, but were not as enthusiastic about the CPI adjustment. They did recognize that the CPI adjustment was allowed under the franchise agreement. Staff would like to acknowledge the cooperation and participation of the MACs for their assistance in this process and for identifying areas of concern and suggested resolution. 939v\bo\RateAdj.Can i �' LAW OFFICES OF GAGEN, MCCOY, MCMAHON & ARMSTRONG WILLIAM E. GAGEN, JR. A PROFESSIONAL CORPORATION DANVILLE OFFICE GREGORY L. MCCOY 279 FRONT STREET PATRICK J. MCMAHON P. 0. BOX 218 MARK L. ARMSTRONG DANVILLE, CALIFORNIA 94526-0218 LINN K. COOMBS TELEPHONE: (510) 817-0585 STEPHEN W. THOMAS FAX (SIO) 838-5 85 CHARLES A. KOSS MICHAEL J. MARKOWITZ NAPA OFFICE MICHAEL W. CARTER RICHARD C. RAINES 1001 SECOND STREET, SUITE 315 NAPA, CALIFORNIA 94559-3017 VICTOR J. CONTI TELEPHONE: (707) 224-8396 BARBARA DUVAL JEWELL July 13 , 1993 FAX: (707) 224-5817 ROBERT M. FANUCCI ALLAN C. MOORE PLEASE REPLY TO: CAROLE A. LAW ALEXANDER L. SCHMID PATRICIA E. CARTEL �� MICHAEL P. CANDELA C Danville CHARLES A. KLINGE Q��E� JUL 1 31993 Chair Tom Torlakson CLERK �_..a Board of Supervisors COtVTRq��Si;PE,•'�' . c/o Clerk of the Board of Supervisors OS, Cr 651 Pine Street Martinez, CA 94553 Re: Determination Item 2 . 6 Interim Rate Adjustment and Mini-Can Service for West Pittsburg and Discovery Bay Franchise Areas Dear Tom: As you know, our office represents Discovery Bay Disposal and West Pittsburg Disposal. My client supports the recommendations of the Community Development Department, including the interim rate adjustment of 3 . 20% and the implementation of the residential mini- can service. To be clear on the specific effect on rates of the Board action in adopting these recommendations, I would suggest that the enclosed rate calculation adjustment sheet be attached to the Board Order. With respect to the mini-can service, as you are aware, the discount for a mini-can results in a corresponding increase in the rate for standard service. The differences are reflected in the rate calculation adjustment sheet. The adjustments in the rate calculations for the mini-can service are based on estimated numbers of discount users. If the number of discount users are different than anticipated, a subsequent adjustment in rates to reflect those differences may be necessary. Two elements of our client's rate increase request have yet to be considered. One is the completion of a rate model and a rate adjustment to reflect increased costs not accounted for by the Consumer Price Index interim rate adjustment. The second is to consider an appropriate method to recover operating losses and consider retroactive increases with respect to those losses. My is\volt\dicnt\25752\Torlaksun.IIr s Chair Tom Torlakson July 13 , 1993 Page 2 client remains committed to providing whatever assistance and information that is necessary for the County to complete the review of the rate increase request. The County's timely consideration of the balance of the rate increase request will be greatly appreciated. y, my L- ?ar , L. Armstrong MLA:kh Enclosure cc: Sil Garaventa, Jr. is\volt\clicnt\25753\'I'orlakson.Itr DISCOVERY BAY AND WEST PITTSBURG DISPOSAL SERVICE RATE CALCULATION ADJUSTMENT 20 Gallon Mini Can Only Discount D.B. W.P. # of Households 2269 1977 Anticipated Discount Users 100 453 Discount Amount 20% 20% Rate Adjustment Necessary 0. 89% 4 . 80% CPI Adjustment Bay Area Consumer Price Index San Francisco-Oakland-San Jose All Urban Consumers CPI Ending December 1992 3 .20% Rate Adjustment D.B. W.P. Current Rates $19 . 95 $19 . 25 Adjustments Discount Rate Adjustment 0. 89% 4 . 80% CPI Adjustment 3 . 20% 3 . 20% Total Adjustment 4 . 09% 8 . 00% New Rates $20.75 $20.80 (Rounded to the nearest five cents) Discount 20% ($4 . 15) ($4 . 16) Discount Rates $16. 60 $16. 65 (Rounded to the nearest five cents) DATE: / ' 3 REQUEST TO SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. v NAME: Q�Ck �`l) (`� PHONE: ADDRESS: 1r-,y 2-19 r(bP,�-JtrttJ CITY: I am speaking formyself OR organization: We)v Q�� ?ter � ^' PU(J (NAmE OF ORGANI!_41 1 N) "T4 Check one: QwJ �;�e s Ce I wish to speak on Agenda Item #Q My comments will be: general for X against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider.