HomeMy WebLinkAboutMINUTES - 06031997 - D4 Contra
TO: BOARD OF SUPERVISORS,
Costa
FROM: HARVEY BRAGDON, C0^
DIRECTOR OF COMMUNITY DEVELOPMENT
DATE: JUNE 3, 1997
SUBJECT: APPROVE AND AUTHORIZE THE COMMUNITY DEVELOPMENT DIRECTOR TO
EXECUTE A CONTRACT TO REVIEW AND MODIFY THE SOLID WASTE RATE
SETTING METHODOLOGY AND ASSESS EXISTING RATES FOR THE UNINCORPORATED
AREA SERVED BY RICHMOND SANITARY SERVICE (RSS)
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1. AUTHORIZE the Community Development Department Director or his designee to
execute a contract with NewPoint Group to provide a focused review of information
submitted by RSS regarding their operations, provide an audit evaluation of the key
elements of cost and modify the solid waste rate setting methodology used in
setting refuse collection rates in the unincorporated area of West County served by
RSS. The consultant will also assess existing rates and review the rate structure
and its components. The amount of expenditure will be $29,980.
2. Determine whether the comprehensive review of RSS's operations is necessary to
evaluate costs and rates. The fee for this is an additional $45,000 subject to
increase if additional requests are made.
CONTINUED ON ATTACHMENT: X YES SIGNATURE: (:eolo
_RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON June 3, 1997 APPROVED AS RECOMMENDED OTHER X
Please see Addendum (Attached) for a list of speakers and final Board Action.
VOTE OF SUPERVISORS
X UNANIMOUS (ABSENT ----------- I HEREBY CERTIFY THAT THIS IS A TRUE AND
AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND
ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
Contact: Linda Moulton (510) 335-1238
cc: Community Development Department(CDD) ATTESTED June 3, 1997
PHIL BATCHELOR,CLERK OF THE
OARD OF SUPERVI ND
COU TY AP 1IV IS ATOR
Attachment
Christine Wampler
LM:rw .
RLM1:newpoint.7bo
Board Order
Funding of contract for RSS rate setting
June 3, 1997
-Page 2-
FINANCIAL IMPACT:
The County General Fund may need to advance funds to accomplish the review (see
Attachment A). The $17,000 mentioned in the memo for the EI Sobrante audit is in
addition to the $13,000 already secured by Franchise Fees.
1. Costs of the focused review will be covered by the Franchise Fees collected from
RSS which will reimburse any monies advanced from the General Fund. As of May
6, 1997, $24,134 has been collected for the designated use of funding such studies.
2. Costs for the broader Comprehensive Review will be loaned by the General Fund
and repaid by future franchise fees. A request has been made by Ad Hoc Solid
Waste Committee to solicit contributions from West County jurisdictions.
BACKGROUND/REASONS FOR RECOMMENDATIONS:
The County Ad Hoc Solid Waste committee directed the Community Development
Department to issue Requests for Proposals to provide background information necessary
to evaluate the rate review process in unincorporated West County. The intent was to:
1) adapt the methodology designated in the Franchise Agreement to make it
applicable for the County use and current conditions in the solid waste industry;
2) have a methodology in place so that the County can be prepared for any RSS rate
review;
3) review RSS's audited financial statements for 1994-1996;
4) analyze annual expenses/costs and revenues (including intercompany/affiliate
transactions as allowed by the Franchise Agreement);
5) review the current residential rate structures and its components; and
6) assess existing rates and calculate the range of rates that would be consistent with
the operating ratio as identified in the Franchise Agreement.
After meeting with the EI Sobrante Municipal Advisory Council's (ESMAC) Ad Hoc
Committee on Garbage additional work tasks were requested to provide more detail in the
review. The ESMAC's committee requested that a more comprehensive review be funded
and make suggestions (shown in the Attachment B - a memo dated February 26, 1997
from Milt Ketter, Chairperson of the ESMAC's Ad Hoc Solid Waste Committee).
Based on the funds that had been authorized, staff issued an RFP requesting a focused
review. Staff tried to incorporate as many of the ESMAC's Solid Waste Committee's points
as possible into the focused review. The second stage of the review, the comprehensive
review, was bid separately.
The consultant separated the costs in 2 parts and also the schedule is sequential (copies
of the costs and schedule are shown in attachment C). It is possible to fund the focused
review ($29,980) at this time and decide to fund the comprehensive review after funding
sources have been secured.
LM:rw
RLM1:newpoint.7bo
ATTACHMENT A
OFFICE OF THE COUNTY ADMINISTRATOR
RECVED
CONTRA COSTA COUNTY CONTRA COSTA COUNTY
Administration Building OCT 3 01996
651 Pine Street, 11th Floor GROWTH MANAGEMENT AND
Martinez ECONOMIC DEVELOPb1ENT AGENCY
DATE: October 25, 1996
TO: Val Alexeeff, Director, GMEDA
Tony Enea, Senior Deputy County Administrator
FROM: Phil Batchelor,'County Administrator
SUBJECT: AUDIT OF SOLID WASTE FRANCHISE FEES FOR
EL SOBRANTE AND KENSINGTON
Val, as you recall, Supervisor DeSaulnier was most insistent at the Board meeting
on October 22, 1996, that we move ahead immediately with the audits of the solid
waste franchisers in EI Sobrante and in Kensington. We were asked to loan the
money to GMEDA if necessary in order to move the audits ahead as quickly as
possible. The money can then be repaid as it is collected.
Tony, please identify a source from which we can loan the necessary funds to
GMEDA for this purpose. I understand from Val's comments at the Board meeting
that we need approximately $17,000 for the EI Sobrante audit and I assume
something like $30,000 for the Kensington audit. Please let me know where you
plan to take the money from before we actually transfer it.
Val, please come up with a timeline we can share with the Board members which
moves these audits ahead as quickly as possible and indicates when they can be
undertaken and completed.
PB:amb
cc: Supervisor Jeff Smith
Supervisor Jim Rogers
Supervisor Gayle Bishop
Supervisor Mark DeSaulnier
Supervisor Tom Torlakson
Supervisor-Elect Joe Canciamilla
ATTACHMENT B
.Community Del '
lopment Department staff
Atth: Linda oulton
;`:Thasa
are ou ',views on what the audit of RSS should include:
Must bq an orational audit complete with a rate review and
-ratm ,911ttingil ethodolgy.
. , must bg done to generally accepted auditing standards.
a. , $pope to ino ude review of all organizational and functional
areas And iac +fir-affiliate transactions.
.Must eompare,,all inter-company charges with costs for obtaining
i
same, sb
4rvic outside.
� ::
`•
A�f114tes !ch 'do not provide goods or services to other
affiliates ould only be evaluated to the extent necessary
. to verify t*,t they do not provide to other parts of the
oxgs►nitatiotl}�
Should oval to the efficiency and effectiveness with which
the- company .and affiliates are managed.
Identify antdocument for improvement areas found. to be
• 'tiei'icent. '
Final. repor . must be easily readable and understandable by
the public..r .
Findings should include a summary of overall impressions,
significane.-'conclusions for each function area and affiliate
and r9oomme► 'dations.
Milt �{+�ttex`fir+
.
2/26/9? :;
4 5..."•�
$ rt
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ATTACHMENT C rr
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DA
ADDENDUM
Item DA
June 3, 1997
Chairman DeSaulnier invited the public to comment on the issues and
the following persons spoke:
Milt Ketter, Chair, El Sobrante Municipal Advisory Council's
Ad Hoc Committee on Garbage, 4 Oak Creek Road, El
Sobrante;
Joan Gullegos, 239 Cumbridge, Kensington; and
Richard Norris, Attorney representing the Richmond Sanitary
Service (No speaker card submitted).
All persons desiring to speak having been heard, Chairman DeSaulnier
ended public comment on the matter.
Board members discussed the issues and took the following action:
1. APPROVED Recommendation No. 1 as set forth in the attached
Board order; and
2. REQUESTED that the NewPoint Group consider the costs of the
new pick-up system within the scope of the audit.
cc: Community Development Department
C.IN
May 14 , 1997
Hon. Mark DeSaulnier, Chair
Contra Costa County Board of Supervisors
651 Pine Street
Martinez, CA 94553
Dear Chairman DeSaulnier,
At the April 30 meeting of your Ad Hoc Solid Waste Committee
you asked our committee to recommend alternative sources of
funds to supplement funds already committed to the audit of
Richmond Sanitary Service.
After careful consideration by our committee and members of
the El Sobrante MAC, we recommend:
1 . The County obtain the amount needed to complete
the audit from the general fund.
2. An alternative recommendation is that the money
be borrowed from the general fund and repaid
from future franchise fee collections.
We are opposed to adding a surcharge to residents' monthly
garbage bills for payment of the audit. The audit cost would
be a one-time expense, establishing a base from which future
regulatory actions by the County will readily flow. It will
serve as a model for regulating all county franchise agree-
ments and, therefore, we feel it should be paid for from
general funds.
Sincerely,
M. B. Ketter, Chair, El Sobrante MAC' s
Ad Hoc Committee on Garbage
cc: Supervisors Canciamiilai,/111'
Gerber
Rogers
Uilkema
Reva Clark, Chair, El Sobrante MAC