Title
Hearing to consider adoption of Resolution 190-2008 adjusting the solid waste collection rate for South Tahoe Refuse, Inc. by 4.33%, effective July 1, 2008.
Body
Fiscal Impact/Change to Net County Cost: There is no change in Net County Cost.
Background: In accordance with the Franchise Collection Agreement between El Dorado County and South Tahoe Refuse, Inc., Section 19 - Compensation, the Board of Supervisors shall set the rates to be charged by the Grantee. Per the Franchise Agreement the Grantee shall be entitled to a rate increase whenever Grantees landfill disposal costs increase due to rate increases at the landfill used by Grantee, but only for the purpose of passing through said disposal cost increase in grantees collection rates. In addition, the Board of Supervisors shall consider revising Grantees rates whenever Grantee establishes to the satisfaction of the Board that unforeseen circumstances have arisen which have materially affected the Grantees costs or revenue under the Franchise Agreement.
On May 28, 2008, the Environmental Management Department received a letter from Freeman & Williams, LLP on behalf of South Tahoe Refuse Inc. formally requesting a rate increase of 4.33% for the upcoming Operating Year commencing July 1, 2008 (see attachment A). As stated by the Grantee this increase is required to reimburse STR for disposal cost increases at the Lockwood Landfill (where STR disposes of all waste required to be land filled that STR collects in the South Tahoe basin) and diesel fuel price increases. The components of the 4.33% rate increase are: 2.7% for pass-through from Lockwood Landfill, 1.4% for fuel increases and 0.23% for applicable franchise fees.
On March 15, 2005, the Board of Supervisors approved three yearly 9% rate increases for South Tahoe Refuse (STR), to become effective on April 2005, January 2006 and January 2007. The first 9% increase effective in April 2005 was to compensate STR for their operating cost...
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