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Garbage Fees to Remain at Current Levels for Areas 1 and 4

August 30, 2013

The Supervisors recently gave the OK to an amendment to a contract with the Recology-Auburn Placer for garbage handling. The agreement will postpone a scheduled cost of living adjustment for garbage collection fees in Franchise Areas 1 and 4. The result of the postponement is that fees for garbage collection will not rise.

Franchise Areas 1 and 4 include all of the unincorporated areas of the Placer County west of Colfax, including the Foresthill and Iowa Hill divides. Recology-Auburn Placer has provided garbage collection services to these areas since 1976.

Garbage collection fees in the agreement include:

  • A service fee covering labor, equipment and overhead costs that is adjusted based on the Employment Cost Index and Producer Price Index;
  • The Tipping Fee, or the fee charged at the dump for the garbage, which has not changed for several years; and
  • A 7 percent service fee for the county’s Solid Waste programs.

Under the agreement, Recology-Auburn Placer is entitled to a cost of living adjustment on the Service Fee for fiscal year 2013/14. This approved First Amendment to the Franchise Agreement postpones the adjustment for one year. Instead of raising garbage collection fees this year, the amendment includes a one-time payment of $84,416 to Recology-Auburn Placer to offset the value of the adjustment. The postponed adjustment will be included in the proposed garbage collection fee adjustments that will be presented to the Board next spring.

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