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HEARING - Environmental Management Department recommending the Board consider the following regarding Material Recovery Facility and solid waste collection rates for Waste Connections of California, Inc., doing business as El Dorado Disposal Service, Franchise Areas A, B, and C:
1) Find that a 4.12% Consumer Price Index increase to the existing Material Recovery Facility and solid waste collection rates, both residential and commercial, in Franchise Areas A, B, and C, is in accordance with the interim year rate-setting process as outlined in the Solid Waste Rate Setting Policies and Procedures Manual;
2) Adopt and authorize the Chair to sign Resolution 108-2026 (Attachment A), adjusting the residential and commercial solid waste collection rates for El Dorado Disposal Service, Areas A, B, and C, by 4.12%, effective July 1, 2026; and
3) Adopt and authorize the Chair to sign Resolution 109-2026 (Attachment B), adjusting the Material Recovery Facility rates by 4.12%, effective July 1, 2026.
FUNDING: User Fees and Franchise Fees.
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DISCUSSION / BACKGROUND
On October 21, 2014 (Legistar file14-1047), the Board adopted Resolution No. 187-2014 authorizing a new Solid Waste Services Agreement (Franchise Agreement) between the County and Waste Connections of California, Inc., doing business as El Dorado Disposal Service (El Dorado Disposal), for the collection of solid waste throughout the franchise area and operation of the Material Recovery Facility (MRF). In addition to significant changes from the previous agreement, this Franchise Agreement also incorporated a new Solid Waste Rate Setting Policies and Procedure Manual (Rate Manual) developed by New Point Group (now Crowe LLP).
The Rate Manual provides specific requirements for the setting of collection rates during "Base" years (every third year of the Franchise Agreement) and "Interim" years (years falling between base years). Base year rate adjustments require an in-depth financial analysis to det...
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