REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  June  27, 2017
CATEGORY:  Scheduled Hearings - Public Works-7.

SUBJECT:

Waste Agreement Amendment and Rate Adjustment Hearing

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Take the following actions on behalf of USA Waste of California, Inc. (USA): (1) Conduct a public hearing to consider increasing the monthly waste collection rates and add new charges; (2) close the public hearing; (3) direct the Clerk of the Board to tabulate written protests from property owners and tenants; (4) in the absence of a majority protest, adopt a resolution of the Board of Supervisors of the County of Shasta authorizing the adjustments in residential, commercial, and transfer station refuse collection rates effective July 1, 2017 until July 1, 2021; and (5) approve and authorize the Chairman to sign an amendment to the franchise agreement with USA effective the date of signing by both parties authorizing the new fee schedule for residential and commercial collections.

SUMMARY

The waste collection franchise agreement provides for annual waste collection rate adjustments.

DISCUSSION

USA Waste of California, Inc. (USA) provides waste collection services in unincorporated areas of Shasta County.  On November 13, 2012, a ten-year franchise agreement was approved.  The agreement provides for annual rate adjustments up to 6% based upon changes in the Consumer Price Index (CPI) and tipping fees.  On June 25, 2013, the Board authorized annual rate adjustments in accordance with the franchise agreement for the period July 1, 2013 through July 1, 2018.

The franchise agreement delineates the services which USA shall provide.  USA occasionally receives requests or encounters situations which are beyond the scope of the franchise agreement (overloads, extended rental periods, backyard collection, callbacks, etc.). USA has agreed to provide these additional services for prescribed charges per industry practice.

On May 11, 2017, a notice of rate adjustments was mailed to every customer pursuant per Articles XIIIC and XIIID of the California Constitution and California Government Code sections 53750 et seq. (attached).  The notice disclosed the potential for rate adjustments up to 6% a year until July 1, 2021 per the staff recommendation.

ALTERNATIVES

The Board may decline to adopt the proposed resolution.  The 2017 and 2018 rate adjustments could still proceed per prior Board action and in accordance with the franchise agreement.  Proposed additional services would be unavailable to USA customers.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the resolution and amendment as to form.  Risk Management has reviewed and approved the amendment.  The County Administrative Office has reviewed this recommendation.

FINANCING

Waste collection services are entirely fee supported. These adjustments are subject to the Proposition 218 process. Adequate funds to administer the franchise agreement were included in the Adopted 2017 Solid Waste budget.  There is no General Fund impact.