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Letter to the Editor: Garbage contractor rate increase

My sincere thanks and appreciation to Mr. Wellman for validating my financial analysis regarding how Plumas County determines if a garbage contractor is entitled to a rate increase or not.

Plumas County Public Works is basically making a simple accounting mistake on how ‘non-allowable’ expenses are managed in the rate review process.

In my previous Letter (https://www.plumasnews.com/letter-to-the-editor-rate-increase-doesnt-make-sense/), it shows how a contractor can take a large amount of non-allowable expenses such that it always generates a rate increase.

The Letter also shows that the contractor, Intermountain Disposal (IMD), is not entitled to a rate increase this year. Correcting the accounting error for the previous year’s (2022) rate review also shows that IMD was not entitled to a rate increase for that year either. Again, it was due to the mishandling of non-allowable expenses.

We the people of Plumas County must tell our Supervisors to instruct Public Works to properly compute non-allowable expenses or simply not allow non-allowable expenses in the first place.

There is a Special Board of Supervisor meeting this Friday June 30, 2023. If you can please speak at the Public Comment period or simply send an email to [email protected] to voice your support to process the rate review correctly.

Nobody is harmed by correctly computing the operating ratio that determines if a rate increase is warranted or not. By not addressing the accounting error, contractors in both the IMD and Waste Management districts can force a rate increase every single year. This harms everyone in Plumas County.

This is a chance for the Plumas County Supervisors to show that they care, and can do the right thing for the people of our County.

Mark Mihevc

Graeagle

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