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File #: 19-0918    Version: 1
Type: Agenda Item Status: Approved
File created: 6/4/2019 In control: Board of Supervisors
On agenda: 6/25/2019 Final action: 6/25/2019
Title: HEARING - Environmental Management Department recommending the Board consider the following regarding the solid waste collection rates for Tahoe Truckee Disposal Co., doing business as Tahoe Truckee Sierra Disposal: 1) Based on the analysis completed by staff, find that a 6.0% increase to the existing rates be in accordance with the interim year rate setting process as outlined in the Solid Waste Rate Setting Policies and Procedures Manual; and 2) Adopt and authorize the Chair to sign Resolution 094-2019 adjusting the solid waste collection rates for Tahoe Truckee Sierra Disposal franchise area by 6.0% for the 2019 interim year to become effective July 1, 2019. (Est. Time: 20 Min.) FUNDING: User Fees/Franchise Fees. (No Federal Funding)
Attachments: 1. A - Contract Routing Sheet, 2. B - Franchise Area Rate Increase Resolution, 3. C - Tahoe Truckee Sierra Disposal 2019 Interim Year Rate Application, 4. D - County's Staff Report - Draft, 5. E - County's Public Notice - Tahoe Daily Tribune, 6. Executed Resolution 094-2019
Related files: 18-0824, 15-0903, 20-0706, 21-0905, 22-0985
Title
HEARING - Environmental Management Department recommending the Board consider the following regarding the solid waste collection rates for Tahoe Truckee Disposal Co., doing business as Tahoe Truckee Sierra Disposal:
1) Based on the analysis completed by staff, find that a 6.0% increase to the existing rates be in accordance with the interim year rate setting process as outlined in the Solid Waste Rate Setting Policies and Procedures Manual; and
2) Adopt and authorize the Chair to sign Resolution 094-2019 adjusting the solid waste collection rates for Tahoe Truckee Sierra Disposal franchise area by 6.0% for the 2019 interim year to become effective July 1, 2019. (Est. Time: 20 Min.)

FUNDING: User Fees/Franchise Fees. (No Federal Funding)
Body
DISCUSSION / BACKGROUND
On October 27, 2015 (Item No. 26, File No. 15-0903), the Board adopted Resolution No. 161-2015 authorizing a new Solid Waste Services Agreement (Franchise Agreement) with Tahoe Truckee Sierra Disposal for the collection of solid waste throughout the franchise area. The new Franchise Agreement incorporated a Solid Waste Rate Setting Policies and Procedures Manual (Rate Manual) developed by NewPoint 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 determine if rates require adjustment, the amount of the adjustment, and whether or not an increase or decrease to rates is warranted. Interim year rate adjustments are calculated based upon 85% of the change in the U.S. City Average - Garbage and Trash Collection Consumer Price Index (CPI) of the previous 12 months (December to December). The franchise hauler is not obligated to request an increase in interim years.

The new Franchise Agreement incorporated the residential and commercial solid waste co...

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