West Valley Authority warns of upcoming rate audit and CalRecycle compliance review

Rob Hilton, executive director of the West Valley Solid Waste Management Authority, told councilors the authority will undergo a contract-defined cost-based rate review in the fourth year of its collection contract and again in year eight, a process in which CPAs will test company expenses and revenues to align rates with costs.

"We do a what's called a cost based rate adjustment where we go in and we audit the company's books," Hilton said, describing the procedure that can produce either increases or decreases in rates depending on audited results.

Hilton also said CalRecycle's jurisdiction compliance unit plans a comprehensive statewide review to verify implementation of SB 1383 — the state law governing organics diversion and other recycling requirements — and that the unit will examine records at a granular level, including local permit counter practices and purchase records.

The authority is preparing to support member agencies with pre-audit reviews, training and corrective notes; Hilton said staff had already completed a pre-audit and would do additional trainings and documentation prior to CalRecycle’s review. He advised councilors that the year-4 rate review is not just a CPI adjustment and could produce a "true up" to costs.

Councilors asked whether the authority's cost-allocation changes had produced complaints; panelists said multifamily property managers were most affected when billing moved to a per-unit unlimited-service model, and that communications at rollout required significant explanation.

Council staff and West Valley officials agreed to produce materials and trainings for city staff and to provide the requested charts and event-count clarifications to the council promptly.

No formal rate change was adopted at the meeting; next steps are staff follow-up and the scheduled contract review process.