Title
HEARING - At the request of Waste Connections of California, Inc. dba El Dorado Disposal Service, Inc., and pursuant to the amended August 23, 2004 Solid Waste Services Agreement, to consider their request to conduct a public hearing and adopt Resolution 060-2014 increasing the solid waste collection and Material Recovery Facility rates by 1.6 percent (1.6%), effective July 1, 2014. (Est Time: 30 Min.)
Body
Fiscal Impact/Change to Net County Cost
There is no change in Net County Cost.
Background
The County of El Dorado entered into a Solid Waste Services Agreement (Agreement) with Waste Connections of California, Inc. dba El Dorado Disposal Service, Inc. (EDS) on August 23, 2004, to provide services for the collection and safe transport to disposal facilities of municipal solid wastes and the recycling of recyclable materials. The Agreement was amended by the First Amendment of Solid Waste Services Agreement, effective January 1, 2010 (Legistar item 09-1542).
In accordance with the Solid Waste Services Agreement as amended between the County of El Dorado and Waste Connections of California, Inc., Section 22 - Compensation, Inflation/Deflation Adjustment - Contractor's rates shall be adjusted annually effective July 1st of each year during the Term of this Agreement based on the Consumer Price Index - All Items - All Urban Consumers - California as published by the State of California, Department of Industrial Relations, Division of Labor Statistics and Research. The month to be used for purposes of measuring the point-to-point base period, for the purpose of rate setting adjustment, shall be December of each year.
Reason for Recommendation
On March 31, 2014, pursuant to the Agreement, the Community Development Agency, Environmental Management Division (EMD) received a letter from EDS requesting a 1.6% rate increase, effective July 1, 2014.
The Consumer Price Index - All Items - All Urban Consumers - California as published by the State of California, Department of Industrial Relations, Division of Labor Statistics and Research for the period of December 2012 was 237.705. The index for December 2013 was 241.526. Based on this, the percent of change from the December 2012 index to the December 2013 index reflects an index increase of 1.6%.
Recent Board Action
The Board granted El Dorado Disposal Service a 2 percent (2%) rate increase on June 11, 2013, effective July 1, 2013.
Item for Consideration
The Board of Supervisors' consideration is requested for a rate increase of 1.6% effective July 1, 2014, as contractually agreed upon in the current amended Agreement. EMD finds that a 1.6% rate increase is appropriate, with an implementation date of July 1, 2014.
The following is a sample of the proposed rates in accordance with EDS's rate increase request and all rates are listed in the attached Resolution:
Residential
Current Rate Rate with 1.6% CPI Increase
1 32g Can $20.27 $20.59
1 64g Cart $30.37 $30.86
1 96g Cart $31.10 $31.60
Commercial
Current Rate Rate with 1.6% CPI Increase
1 Yard $85.51 $86.88
2 Yard $148.07 $150.44
EMD has approved EDS's written notification to each ratepayer as described in Section 22 of the Agreement.
The hearing to adopt the proposed collection rate adjustments has been duly noticed in accordance with Section 66016 of the California Government Code.
Clerk of the Board Follow Up Actions
Forward executed resolution to EMD for implementation.
Contact
Steve Pedretti, Director
Community Development Agency
Concurrences
None