To: Board of Supervisors
From: Solid Waste
Meeting Date: March 19, 2019
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Department Contact: |
Carmel J. Angelo |
Phone: |
463-4441 |
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Department Contact: |
Steve Dunnicliff |
Phone: |
463-4441 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 15 Min |
Agenda Title:
title
Discussion and Possible Action Including Approval of First Amendment to Board of Supervisors Agreement 15-071 with Cold Creek Compost Increasing Tipping Fees for Composting Services, Effective March 19, 2019, through December 31, 2022; and Approval of Pass-Through Rate Adjustment with Solid Wastes of Willits (SWOW)
(Sponsor: Solid Waste)
End
Recommended Action/Motion:
recommendation
Approve first amendment to BOS Agreement No. 15-071 with Cold Creek Compost to increase tipping fees for composting services, effective March 19, 2019, through December 31, 2022; and approve pass-through rate adjustment with SWOW.
End
Previous Board/Board Committee Actions:
On July 7, 2015, the Board approved Agreement No. 15-071 with Cold Creek Compost for composting services. Board agreements relevant to the pass-through rate adjustments include BOS Agreement No. 10-139, approved with SWOW on August 17, 2010 for Franchise Area No. 1 (North County). BOS Agreement No. 10-138 was approved with SWOW on 8/17/10 for “5 County-Owned Transfer Stations, Including South Coast” and BOS Agreement No. 11-008 was approved with SWOW on 1/28/11 for the Caspar Transfer Station.
Summary of Request:
Cold Creek Compost, Inc. (Cold Creek) is requesting an increase in its tipping fee from $26 per ton to $36 per ton to counter increased costs stemming from changes in laws and regulations, and changing market conditions. The County’s current contract with Cold Creek does not provide a mechanism for price increase outside of annual adjustments for changes in the San Francisco-Oakland-San Jose CPI-U index. Cold Creek provides an important local service and it is in the County’s interest that Cold Creek remain in business. The green carts, provided by franchise area haulers as part of the solid waste service, collect organic matter such as food and yard waste. That organic material is transported to the Cold Creek composting facility in Potter Valley, where it is recycled into premium soil and compost for resale. The proposed amendment to the contract, which does not expire until December 31, 2022, would provide for a one-time adjustment to the tipping fee to $36 per ton which would then be adjusted subject to future CPI changes. At $36 per ton, the cost for these composting services is still below the cost to dispose of or compost through other services available in the region. The Cities of Fort Bragg and Ukiah have already approved the requested increase in the tipping fee; Willits has scheduled action on the matter in March. The tipping fee increase to Cold Creek will result in an increase in customer fees paid through Solid Wastes of Willits, estimated in total at approximately $14,800 on an annual basis. Effective March 19, these increased fees would be apportioned proportionally to County Franchise Area 1 (North County), the Caspar Transfer Station, the South Coast Transfer Station, and the Willits Transfer Station.
Alternative Action/Motion:
Provide direction to staff.
Supervisorial District: All
vote requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: Customer Rates |
budgeted in current f/y: N/A |
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current f/y cost: N/A |
if no, please describe: |
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annual recurring cost: N/A |
revenue agreement: N/A |
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budget clarification: Cold Creek Compost tipping fees are paid by franchise area haulers and transfer station customers through rate and gate fees. Total annual fee increase through SWOW is estimated at approximately $14,800, apportioned proportionally to County Franchise Area 1, the Caspar Transfer Station, the South Coast Transfer Station, and the Willits Transfer Station |
Agreement/Resolution/Ordinance Approved by County Counsel: Yes
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CEO Liaison: Steve Dunnicliff, Deputy CEO |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Meribeth Dermond, Deputy Clerk II |
Final Status:Approved |
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Date: March 20, 2019 |
Executed Item Number: Agreement Item Number: 15-071-A1 |
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Note to Department Number of Original Agreements Returned to Dept: Two Original Agreement Delivered to Auditor? Yes |
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