REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  July  17, 2018
CATEGORY:  Scheduled Hearings - Public Works-7.

SUBJECT:

Waste Collection and Transfer Station 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 Burney Disposal, Inc.: (1) Conduct a public hearing to consider increasing the monthly residential and commercial waste collection and transfer station disposal rates and monthly waste collection fuel surcharge for the period August 1, 2018 through June 30, 2019, and approve a methodology for future rate and surcharge adjustments to be effective annually each July 1 for the period July 1, 2019, through July 1, 2023; (2) close the public hearing; (3) direct the Clerk of the Board to tabulate written protests from property owners and tenants; and (4) in the absence of a majority protest, adopt a resolution which authorizes the proposed rate increases and approves the methodology for future rate adjustments.

SUMMARY

Annual waste collection and transfer station rate adjustments are proposed for Burney Disposal, Inc.

DISCUSSION

Waste collection services in the unincorporated areas are provided through franchise agreements. On June 24, 2014, the County entered into a ten-year franchise agreement with Burney Disposal, Inc. (Burney), retroactively effective July 1, 2013. They shall provide waste collection services and operate two transfer stations in the Intermountain area. Rates are adjusted annually based upon the Consumer Price Index (CPI) and changes in hauling and disposal costs. Rate increases are subject to Articles XIIIC and XIIID of the California Constitution and Government Code sections 53750 et seq. On June 25, 2013, the Board approved annual rate adjustments through July 1, 2017. On June 1, 2018, a notice of proposed rate adjustment (attached) was mailed to Burney customers. Rates from August 1, 2018 through June 30, 2019 have been calculated per the franchise agreement. Future annual rate adjustments are proposed to be applied each July 1 from July 1, 2019 through July 1, 2023, using the same methodology.

ALTERNATIVES

The Board may decline to approve rate adjustments. This would breach the franchise agreement.

OTHER AGENCY INVOLVEMENT

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

FINANCING

Waste collection services are fee supported subject to the Proposition 218 process. Adequate funds to administer the process were included in the Adopted FY 2018/19 Solid Waste budget. There is no General Fund impact.