HomeMy WebLinkAboutAgenda Report - September 4, 1991 (71)OF
CITY OF LODI
i
COUNCIL COMMUNICATION
AGENDA TITLE: Retain EMCON Associates for Refuse Rate Analysis
NEERN DATE: September 4, 1991
PREPARED BY: City Manager
RECOMMENDED ACTION: That City Council direct the City Manager to execute a
contract with EMCON Associates to provide assistance
during the upcoming refuse collection rate setting
process.
BACKGROUND INFORMATION: The process of setting rates for collection and disposal
of solid waste has beton-r increasingly sophisticated over
the years. Given that the City will soon be completing
its Source Reduction and Recycling Element (SRRE), the degree of complexity
associated with this process has now taken a quantum leap.
California Waste Renimd Systems (CWRS) has retained Barakat and Chamberlin, Inc.,
to assist in the preparation of a rate methodology. This methodology will include
an analysis of costs associated with performing refuse collection as well as
implementing rnw source reduction and recyclingrograms. Particular attention will
be given to financing and debt service costs ofpnew facilities and equipment. The
methodology will then calculate the revenue needed to recover these costs plus a
reasonable return.
In order to preserve the best interests of the citizens of Lodi - those interests
being, the highest quality service at the lowest possible rate - it is recommended
that the City retain experienced professionals, EMCON Associates, to provide
assistance in the upcoming rate setting process. These services are especially
important since many additional cost variables will be introduced to the process for
the first time by the SRRE. EMCON' s primary function would be to vuk with CWRS and
overview the development of the methodology. EMCON would provide their perspectives
and recommendations from the City's point of view regarding "reasonable" projections
of costs, revenues and return. The firm would examine the distribution of the rate
burden between residential, commercial and industrial sectors. The firm would also
assist the City's Solid Waste Nla�nt Task Force, as that citizen review body
assumes the added responsibility of providing input to the City Council in the area
of rate setting.
Ctm of the greatest values EMCON would bring to this process is their complete
understanding of the tasks necessary to implement the SRRE. This knowledge will
enable EMCON to insure that proposed collection rates will accurately reflect the
costs of implementing the SRRE.
Retain EMCON Associates for Refuse Rate Analysis
September 4, 1991
Page Tw
John F. Boss, Executive Manager of EMCON Associates, supervised the development of
the City's SRRE I+ would serve as Primary Consultant to the City in the rate
setting process. M Boss recently assisted the City of Salinas in its rate
negotiations with the City's franchised hauler. I+ and his associates bring a
wealth of knowledge and experience to the City which extends to all aspects of the
design and operation of refuse collection, treatment and disposal systems.
Staff is currently finalizing the fees for services with EMCON Associates and will
be prepared to present a recommendation to City Council at the City Council meeting
of September 4, 1991.
FLNDPU Refuse, Surcharge Fund
Respectfully Submitted,
Thomas A. Peterson
City Manager
J� TAP: t p
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Prepared by Kirk J. Evans
Administrative Assistant to the City Manager
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