1994-06030-Order No. 94-011 Recorded 2/10/1994f
s,. r
94-00030 --
LE COUNSEL
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES CO , OREGON
" (12 -1612
An Order Determining abiform
Set of Policies in Establishing
Rates for Franchisee Services
Within the County and Recommending
the Cities of Bend and Redmond Adopt * '
the Same Policies.
ORDER NO. 94-011 ;.
�.a
WHEREAS, the Board of County Commissioners establish solid waste
franchise collection rates for the unincorporated portion of the County
each year pursuant to County Code; and
WHEREAS, the County retained the services of a rate consultant who
recommended the County and the Cities of Redmond and Bend establish
rate making policies to guide the establishment of rates within the
County and the Cities each year; and
WHEREAS, the Administrator has provided for participation in the
development of the policies for all Franchisee's and a final review by
the rate Consultant and the Franchisee's; and
WHEREAS, the adoption of such policies will result in equity
within the County and Cities for Franchise Services; now therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON,
ORDERS as follows:
Section 1. The Board of County Commissioners have determined that
a uniform set of policies are appropriate in establishing rates for
Franchisee Services within the County and urge the Cities of Bend and
Redmond to adopt the same policies as the County as appropriate.
Section 2. The Policies marked Exhibit "A", attached hereto and
by this reference incorporated herein are hereby approved.
DATED this o2 day of February, 1994.
TES
Recording Secr tary
BOARD OF COUNTY COMMISSIONERS
OF �ESCHUTESUNTY, OREGON
A
E
CHAIR
TO THRO P 1C SSIONNErR�
BARRY H. SLAUGHTER COMMISSI
A
EXHIBIT A 0128-1613
POLICIES FOR USE IN RATE MAKING PROCESS FOR ALL FRANCHISE
COLLECTORS WITHIN THE UNINCORPORATED PORTION OF
DESCHUTES COUNTY, OREGON
FEBRUARY 1994
POLICY 1. FRANCHISE COLLECTORS SHALL SUBMIT FISCAL
INFORMATION EACH YEAR TO THE SOLID WASTE ADMINISTRATOR BY MAY
15 IN ACCORDANCE WITH THE CHART OF ACCOUNTS SUPPLIED TO EACH
FRANCHISEE BY THE COUNTY'S RATE CONSULTANT, EMCO, IN 1993.
POLICY 2. A RANGE OF BETWEEN 901 AND 120-. BEFORE TAXES, BASED
UPON THE OPERATING RATIO APPROACH TO RATE MAKING ALSO
DESCRIBED AS THE RETURN ON SALES METHOD OF CALCULATION IS
APPROPRIATE.
POLICY 3. DEPRECIATION OF SOLID WASTE COLLECTION CURBSIDE
ROLLING STOCK AND RECYCLING COLLECTION ROLLING STOCK,
CONTAINERS, AND DROP BOXES SHALL BE DEPRECIATED ON A 5 YEAR
STRAIGHT LINE BASIS. BUILDING AND LEASEHOLD IMPROVEMENTS
SHALL BE DEPRECIATED ON A STRAIGHT LINE CASE-BY-CASE BASIS.
ASSETS VALUED AT LESS THAN $1,000 MAY BE EXPENSED IN THE YEAR
PURCHASED.
POLICY 4. A FRANCHISEE MAY, AT THE TIME OF SUBMITTAL OF
YEARLY FISCAL INFORMATION REQUIRED IN POLICY 1, REQUEST ONLY
A PASS THROUGH OF ANY INCREASE OR DECREASE IN DISPOSAL FEES.
ANY RATE ADJUSTMENT WILL BE CALCULATED AS A PERCENTAGE IMPACT
ON TOTAL DISPOSAL COSTS, AND APPLIED TO THE DISPOSAL RATE
COMPONENT IN EACH RATE EFFECTIVE ON THE DATE OF THE DISPOSAL
FEE CHANGE. IF THE COMPOSITE FINANCIAL DATA IN THE RATE
MODEL FALLS WITHIN THE ACCEPTED RANGE CONTAINED IN POLICY #2
ABOVE, AND NO FRANCHISE RATE ADJUSTMENT IS REQUESTED FOR
OTHER PORTIONS OF THE SERVICE RATE, NO FURTHER ACTION WILL BE
TAKEN BY THE BOARD. THE CONTINUATION OF THIS POLICY AFTER FY
1994/1995 IS CONTINGENT UPON THE FRANCHISEE PROVIDING THE
COUNTY WITH PERIODIC TESTS OF THE WEIGHT OF VESSELS IN
SERVICE TO CUSTOMERS, PROVIDING A WEIGHT HISTORY FOR
DISPOSAL. THIS TESTING COST IS AN ALLOWABLE EXPENSE. TEST
FREQUENCY AND METHODOLOGY SHALL BE DEVELOPED BY THE
ADMINISTRATOR IN CONSULTATION WITH THE FRANCHISEES.
POLICY 5. THE COUNTY WILL USE THE ADOPTED REDMOND AREA RURAL
RATES FOR THE REDMOND UNINCORPORATED URBAN AREA.
POLICY 6. THE COUNTY WILL WORK WITH THE CITY OF BEND TO
TRANSFER AS MUCH OF THE RATE MAKING PROCESS AS POSSIBLE TO
THE CITY FOR THE UNINCORPORATED URBAN AREA OF BEND.
POLICY 7. THE CHART OF ACCOUNTS PROVIDED THE COUNTY, THE
CITIES, AND THE FRANCHISE COLLECTORS BY EMCO WILL BE USED BY
ALL FRANCHISEE'S IN REPORTING INCOME AND EXPENSES TO THE
COUNTY EFFECTIVE JANUARY 1, 1994.