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Home My WebLink AboutAGENDA BACKUP 07-06-88 . Centra. ~ontra Costa Sanitar\ .listrict BOARD OF DIRECTORS PAGE 1 OF 5 POSITION PAPER BOARD MEETING OF July 6, 1988 NO. SUBJECT CONDUCT PUBLIC HEARINGS TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT, ORINDA-MORAGA DISPOSAL SERVICE, INC., AND PLEASANT HILL BAY SHORE DISPOSAL DATE June 28, 1988 TYPE OF ACTION CONDUCT PUBLIC HEARINGS SUBMITTED BY INITIATING DEPT./DIV. Walter N. Funasaki, Finance Officer Administrative/Finance & Accounting ISSUE: Pub.) ic hearings are to be conducted on July 6, 1988 to consider the app"'ications for rate increases submitted by the three refuse collection companies franchised by the District. BACKGROUND: Applications for increases in refuse collection rates effective July 1, 1988 were submitted by Valley Waste Management, Orinda-Moraga Disposal Service, Incol and Pleasant Hill Bay Shore Disposal, franchise holders for Zones 2, 4 and 5, Zones 1 and lA, and Zone 3, respectively. District staff has reviewed each rate application and prepared an analysis thereon. The staff analyses were submitted to the Board of Directors on May 26, 1988 and June 16, 1988. Copies of the appl icable staff analysis and rate appl ication were provided to the cities of Lafayette and Orinda and the towns of Moraga and Danville, which are served by the Di strict's franch i sed refuse coll ectors. Written comments from the city/town councils were requested by July 1, 1988, or public comments were sol icited for presentation at the publ ic hearing on July 6, 1988. Copies of the staff analyses were also provided to the franchised refuse collection companies. The staff ana-Iysi s of the rate appl icati on submitted by Pl easant Hill Bay Shore Disposal was provided at the May 26, 1988 Board Meeting in draft form. The staff analysi s was presented as a draft document because a need for a further rev iew of certai n revenue amounts, which were asserted to have been inadvertently overstated by the refuse collector in the prior year's application, and a number of related expense accounts, was identified. The final staff analysis, which is submitted herewith, reflects the following changes to the draft document as a result of the further review: o the overstatement of drop box revenue in the prior year's application and its effect on this year's rate adjustment is described. o additi onal rate-setti ng adj ustments reduced forecasted operati ng expenses for the fiscal year ending June 30, 1989 by $9,303. o the rate-setti ng adj ustments referred to above reduced the "Percent Increase in Forecasted Revenue Requi red" from 26.9 to 24.5. The public hearings were scheduled to be conducted on July 6, 1988 at 7 p.m. to provide greater opportunity for participation by members of the publ ic who may not be abl e to attend the regul ar 3 p.m. Board Meeti ngs. After conducti ng the pub"' ic REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. /;~/k~ 1302A-9/85 WF PM SUBJECT CONDUCT PUBLIC HEARINGS TO CONSIDER THE APPLICATIONS FOR REFUSE COLLECTION RATE INCREASES SUBMITTED BY VALLEY WASTE MANAGEMENT, ORINDA-MORAGA DISPOSAL SERVICE, INC., AND PLEASANT HILL BAY SHORE DISPOSAL POSITION PAPER PAGE 2 OF 5 DATE June 28, 1988 hearings, the Board may wish to continue consideration of the applications for rate increases to the regular Board Meeting on July 7, 1988. Notices of the publ ic hearings were released for publ ication in the Contra Costa Times on June 25, 1988 and July 5, 1988, in the Contra Costa Sun and Valley Pioneer on June 29, 1988, and in the Tri-Valley Herald on July 5, 1988. Written comments received from city/town counci 1 s to-date are appended to th i s Posi ti on Pape r. RECOMMENDATION: Conduct public hearings applications for refuse collection rate Management, Orinda-Moraga Disposal Service, Di sposa 1 . on July 6, 1988 to consider the increases submitted by Valley Waste Inc., and Pleasant Hill Bay Shore ~.._----_. 13028-9/85 ~[gte~nY'rreJ) JUN 28 1988 CCCSD 26 orinda way . orinda . california 94563 . 415. 254_~tr'Tl'l!\TO"'" June 23, 1988 Mr. Paul Morsen, Deputy General Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Dear Mr. Morsen: Thank you for the opportunity to review the rate increase application submitted by Orinda-Moraga Disposal Services, Inc. The City Council did not conduct a detailed analysis of the proposal, as this process is appropriately conducted by the District. However, in reviewing your analysis and comments, the Council did ask that several observations be conveyed to the Board of Directors. First, the Council noted that the collection rates in Orinda are already among the highest in the Bay Area, and that while the service is excellent, continued efforts must be taken to keep the rates from rising excessively. Second, the Council commented that the proposed rate increase is exorbitant. In order to control the rate adjustment, the Council urges that the District continue the use of the 95% operating ratio, as has been the practice in the past. Third, and finally, you requested comments on the senior citizens discount program. Because the city is not the franchising agency, we are not privy to information which would reflect upon the success, or the level of participation in this program. However, we are most interested in this information, and we would appreciate any information that your agency could provide on this program. Thank you again for the opportunity to review and comment on this rate increase proposal. Sincerely, ~Q.rr-J~ William II Dabel- - f Mayor WJD/TS:nh I)ANVILLe June 27, 1988 AECI8YllO JUN 27 1988 Board of Directors Central Contra Costa Sanitary District 5019 Imhof Place Martinez, CA 94553-4392 CCCSO """'nCTARYOFTtff:n'li!~ Dear Members of the Board: On June 20, 1988, the Danville Town Council reviewed the refuse collection rate increase requested by Valley Waste Management and the accompanying analysis by your staff. After considerable discussion the Council agreed to support a rate schedule which includes only those expenses for which Danville ratepayers gain direct benefits. The following motion was passed unanimously: 1. Allow a pass through of disposal charges in the amount of $5.84 per cubic yard. (This is based on the fact that $5.84 is the cost to Valley Waste Management and that Valley no longer has a financial interest in the disposal area); 2. Exclude back charges for disposal fees in 1987; 3. Exclude intercompany charges for which there are no supportable record of operating efficiencies; and 4. Include a 95% rate of return to the franchisee. In addition, the Council requested that the Board seek to find more effective ways to identify true charges in the future and to work toward regulation of fees for any new landfill. We appreciate the opportunity to comment on this rate increase application. Sincerely, ~~~ . Lane cc: Marshall Grodin, Valley Waste Management Paul Morsen, CCCSD 510 La Gonda Way · Danville, California 94526 (415) 820-6337 LAFAYETTE SE'lTIMD 1848=INOOKPOKATEDJH8 '- CITY COUNCIL Ernest W. Parti, Mayor Avon M. Wilson, Vice Mayor Richard F. Holmes Donald L. Tatzin Gayle B. Uilkema July 6, 1988 Board of Directors Central Contra Costa Sanitary District 5019 Imhof Place Martinez, CA 94553-4392 Dear Members of the Board: On June 27, 1988, the Lafayette City Council reviewed the refuse collection rate increase requested by Valley Waste Management and the accompanying anaysis of your staff. After considerable discussion the Council agreed to support a rate schedule which includes only those expenses for which Lafayette ratepayers gain direct benefits. The following motion was passed unanimously: 1. Allow a pass through of landfill disposal fee charges by ACME Fill in an amount not to exceed $5.84 per cubic yard. (Landfill disposal fees should be based on an analysis of actual costs with the amount being held as low as possible); 2. Exclude back charges for disposal fees in 1987; 3. Exclude intercompany charges for which there are no supportable record of operating efficiencies; 4. Include a 95% rate of return to the franchisee; and 5. Exclude the valuaton of good will, interest charges and legal acquisition fees in the change of ownership. In addition, the Council requested that the Board seek to find more effective ways to identify true charges in the future and to work toward regulation of fees for any new landfill. We appreciate the opportunity to comment on this rate increase application. Sincerely, ~W~ Ernest W. Parti Mayor EWP:sj ]-6ewp 251 LAFAYETTE CIRCLE, LAFAYETTE, CA 94549 TELEPHONE: (415) 284-1968