Title
Hearing to consider adoption of Resolution 158-2007 waiving the rate adjustment notification deadline in the Franchise Agreement of April 1, 2007, on a one time basis only, and increasing El Dorado Disposal Service, Inc.'s solid waste collection rates by the annual CPI of 3.9%, and adjusting the fuel surcharge from 3.78% to 3.75% effective July 1, 2007. (Continued 06/26/07, Item 62)
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BUDGET SUMMARY:
Total Estimated Cost $0.00
Funding
Budgeted $
New Funding $
Savings $
Other $
Total Funding Available $
Change To Net County Cost $0.00
Fiscal Impact/Change to Net County Cost: None. There is no change to the Net County Cost.
Background: Per the Solid Waste Services Agreement between El Dorado County and El Dorado Disposal Service, Inc. (EDDS), Section 22 B. Time for Rate Settings and Rate Setting Procedures, “The Board of Supervisors shall set the rates to be charged by Contractor pursuant to this Agreement annually at the beginning of each Operating Year (commencing with July 1, 2005), unless a longer period is agreed on by the County and Contractor; provided, however, that Contractor’s rates shall remain unchanged unless Contractor submits a written request to the Board of Supervisors for a rate adjustment no earlier than January 1 and no later than April 1 prior to the commencement of each new Operating Year”.
Reason for Recommendation: On May 9, 2007 the Environmental Management Department received a letter from EDDS indicating that EDDS wished a CPI adjustment in its rates for the upcoming Operating Year commencing July 1, 2007. EDDS stated that it was their interpretation of the Agreement that the annual CPI provided for under Section 22A of the Franchise Agreement is automatic, and therefore not subject to any annual request window or other rate payer notice requirement (see attached letter). The County’s outside counsel (Tom Bruen) responded to EDDS stating that r...
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