Title
HEARING - At the request of South Tahoe Refuse Company, Inc., doing business as Sierra Disposal Service, consider their request to conduct a public hearing for adoption of Resolution 186-2013 increasing the solid waste collection rates by 6.6 percent effective January 1, 2014. (Est. Time: 30 Min.)
Body
Fiscal Impact/Change to Net County Cost
There is no change in Net County Cost.
Background
County of El Dorado entered into a Solid Waste Services Franchise Agreement with South Tahoe Refuse, Inc., dba Sierra Disposal Service (SDS) on August 22, 2000, to provide services for the safe collection, transportation, recycling and disposal of solid waste. According to the Franchise Agreement, Section 19B-Compensation, the “Board of Supervisors shall set the rates to be charged by the Grantee at such times as the Board deems appropriate, but no less often than every two (2) years, unless a longer period is agreed on by the County and Grantee”. In addition, Section 19F, Allowed Profit, states “The Grantee shall be entitled to a reasonable profit on its operating costs in the sole discretion of the Board of Supervisors”.
On April 12, 2011, Item 23 (Legistar # 11-0370) the Board approved a 5.6% rate increase.
On July 12, 2013, SDS sent a formal letter to the Community Development Agency, Environmental Management Division (EMD) (Attachment 2B) with two options for a rate increase:
Option 1 - A rate increase of 8.22% proposed to be implemented over a two year period, with the first adjustment of 4.11% on November 1, 2013, followed by the remaining deferred adjustment of 4.11% on November 1, 2014; or
Option 2 - Two year projection supported by detailed general ledger account information and schedules used for this type of rate application, which includes projections for the years ending June 30, 2014 and June 30, 2015. The calculated rate increase under this methodology was 12.39%.
On August 8, 2013, the Community Development Agency, Environmental Management...
Click here for full text