Wednesday, 25 May 2011 07:29

Supervisors OK rate increase hearings for ACES Franchise Service area 1

slide3-supervisors_ok_rate_increase_hearings_for_aces_franchise_service_area_1.pngAmador County – The Amador County Board of Supervisors voted 3-2 Tuesday to set a public hearing for a solid waste service increase in franchise service Area 1, and also to raise rates at transfer stations in Pine Grove and Camanche.

ACES Waste Service requested the increases, while holding of potential rate decreases in service areas Number 2 and 3. They requested waiting a year to be able to get data for a full year’s service in Ione, to save money on a costly audit that would have to be redone on Ione next year. ACES President Paul Molinelli Senior said it would also allow for potential gasoline prices to not have an impact on the company’s cash flow.

Supervisor Brian Oneto and Chairman John Plasse dissented. Oneto said he thought ACES should seek reimbursement for carbon emission upgrades he has made to his fleet. Oneto thought reductions should occur in the service areas where they would apply.

Supervisor Louis Boitano partially agreed, saying “I’m looking for a smoothing effect.” As a ratepayer, he would like a decrease, but not if two months later the company would need a 10 percent increase. Molinelli said “that’s exactly what we’re afraid of.” He noted that “fuel has increased 30 percent since Jan. 1,” and “if it does not go to below $3 a gallon, we are going to have a larger rate increase.”

County Counsel Martha Shaver said “if you are going to have an increase of any amount, you have to go out” with a Proposition 218 notice, which the board approved in the 3-2 vote. They also agreed to send letters telling the customers about costs ACES is “eating” to be in carbon air emissions compliance.

Molinelli said: “We did incur that expense. We ate that cost. We’re here. We’re standing.” It was about $150,000 to $200,000 in the 2-year process. Supervisor Ted Novelli said it should be an “itemized specialty,” reimbursable under the franchise contract, and Oneto repeatedly asked why it was not sought in surcharges by ACES. Molinelli said “we’re done. The thing is, we will never buy another vehicle again that is non-compliant.” Oneto said: “Until they change the requirements.”

The board, voting 3-2, approved sending a Prop 218 notice for the Service Area 1 rate increase, and set a public hearing for July 12. They also declined a recommended 1% rate change threshold, and agreed to have the Admin Committee work on a draft letter with ACES to tell customers about the carbon compliance costs.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.