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11/22/1994, Agenda & SOLID WASTE 1995 RATE REVIEW
A_ 1111111 1111111 :::;: f III 111111 city o san lues ow o : . ADJOURNED MEETING COUNCIL AGENDA Tuesday, November 22, 1994 - 7:00 PM Council Chamber, City Hall . 990 Palm Street, San Luis Obispo CALL TO ORDER: Mayor Peg Pinard **Lead Person - Item to come back to Council * Denotes action by Lead Person PLEDGE OF ALLEGIANCE . No Asterisk- Information Only ROLL CALL: Council Members Penny Rappa, Dave Romero, Bill Roalman, Vice Mayor Allen K. Settle and Mayor Peg Pinard PUBLIC.COMMENT PERIOD {Not to exceed 15'minute's total) The CouncH welcomes your input`You may address the Council by completing a speakers hp'.ap giving itto tFie Ciry'Cferk pricetothe meeting At this time, you may address the Council on items that are not on the agenda or items on the Consent Agenda: Time imd : is hree minutes Statelaw does not allow:Couricil to discuss ortake action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements'made or:questions posed by persons exercising their public testimony rights (Gov Code §549542) Staff maybe asked to follow upon such items. Staff reports and other written:.documentation relating to eachitem;refer ed to on this agenda are on file m <ahe City'Clerk's O(�ice in Boom #1;:'of Crty`:Hall None. V. QQUNCIL'LIAISON"REPORTS`:(not to exceed 1,5 minutes) Council Members report on conferences.or otherCdy actw�ties' Time'limd 3' minutes None. 1 Council Agenda -Tuesday, November 22, 1994 .......... PUBLIC..HEAR . M6 �Ybu.:have filled outa:Sp:eakbK!SIi0'Ah �M6:iyo:r...O:�i!i*!.!�ly.ou::.to�,t:: ....... 7 pp; ium �i eas&speak .. ........ .. ....... . into the:micro h d d 4!ty:of 're'sidence.fc5t.:the.t.eiWtd::��::�:Plddt imtt microphone ::give:your'name' ...........YoUt.:�.Cotnmehts'.to: minutes, :consultant.aneporple:project present:at:io:n: s lim:it6d' 16A 0:�:rriin ........... . utes .............. :::you.:: challenge: eissue in court::you:mclybd:��iiinftt)d:.to,:raising:�ohlY:�tK6§ . limited issues..... ... ..... .. ...........s. o..m.....o. o.. io. .else : raised: at' ;this . public .;hearing as ..... . ... ....w ofj ... written X ........correspondence beliveredf the City before or during t hei ublp:beCrin L ...... Y., ► 1. SOLID WASTE RATE REVIEW (MOSS/142 - 30 min.) Consideration of increasing solid waste rates by 8.6% effective January 1, 1995. (Continued from 11/15/94.) ♦ RECOMMENDATION: Adopt resolution increasing solid waste rates. *MOSS FINAL ACTION. Resolution No. 8372 adopted (4-1, PP-no). ► 2. PARK IN-LIEU FEES (STATLER/411 - 30 min.)1 Public hearing to consider a two-tiered park in-lieu fee structure based on the 1990 census average household size for single family dwelling (2.7 persons per household) and multi-family residential dwelling (2.14 persons per household): $3,280 for each single family residential unit; $2,520 for each mufti-family residential unit. (Continued from 9/20/94 and 11/15/94.) + RECOMMENDATION: Adopt resolution restructuring park in-lieu fees effective February 1, 1995. *STATLER RAAL ACTION. Resolution No. 8373 adopted (3-2, PR-no, AS-no). ► 3. PLANNED DEVELOPMENT AMENDMENT - S HIGUERA (JONAS/463 - I hr.) Public hearing to consider a request for an amendment to an approved planned development at 2877 S. Higuera Street (PD 108-94) to allow government offices at the site; Lewis Wise, applicant (Continued from 11/15/94.) + RECOMMENDATION: By motion, deny the request based on the finding that it is inconsistent with the Land Use Element policies on governmental offices. *JONAS FINAL ACTION. Request denied (5-0). 2 Council Agenda Tuesday, November 22, 1994 ........................ ....... son.s ... ....... ......... X. COMMUNICATIONS (not to t6dkdedd15 minutes)` At thisttme; any Councfi Member or the City dmians iwsss tratiV6.Officer. may it....tk.Aquestion n:.for .......... X. .... ...:....,......:..............:.c........fi ...........d...........fi...........c..P....a.............t... .. .i..o........n...... ....m... a keanannouncement,.. w: feb:dl b fl6k:d...h . :.....i s or.... .....e. radtivities. .. In - I SU69ctt C6und1Vo1iditand0roodures:they:may:provide.a:referenc : o: orother resources :for.factu :jn ormatjonrequest staff to report ;teoJh . subsequent mWingboncmingany: attet1:or:take adonto.61rect:stafi o place a matte of sinessx. ........ on Upre. Nendd:(G de!.Y. 540"!-�. ............ ................. xx ....... ... ............................... ................................. ............... .. ................................... .. None. ................... . ....... ... ............ .................. ............ .............................. ........................ .. . .......... .............. ........ so . ................ ............. ....... .............. ............ ................ BUSINESS:ITEMV....:� ...... ................... ► ............................ ................... ....... 4. GENERAL PLAN ANNUAL REPORT (JONAS/461 30 min.) Consideration of the 1993-94 General Plan Annual Report. + RECOMMENDATION: By motion: 1) review; 2) direct staff to submit a copy of the report to the State Office of Planning and Research and Department of Housing and Community Development; and, 3) direct staff to initiate any General Plan amendments deemed necessary and appropriate. (Continued from 11/15/94.) *JONAS FINAL ACTION. Accepted as amended," forward to State (5-0). ► S. LANDSCAPE MAINTENANCE SERVICES (McC LUSKEY/95-21) Consideration of an Invitation for Bids to furnish Landscape Maintenance Services estimated to cost $174,000 over a 29 month term of agreement. (IFB is available for review in the Council Office.) (Continued from 11/15/94.) ♦ RECOMMENDATION: Approve IFB and authorize the City Administrative Officer to award the agreement if the lowest responsible, responsive bid is below the cost estimate of $174,000. *McCLUSKEY RNALACTION. Approved (5-0). 3 Council Agenda Tuesday, November 22, 1994 ' y ► 6. PARKS MAINTENANCE (McCLUSKEY/811) Consideration of approving the addition of one new maintenance worker position in the Parks and Landscape Maintenance and transferring $18,800 from the contact services account to various accounts in the Parks and Landscape Maintenance Program. (Continued from 11/15/94.) ♦ RECOMMENDATION: By motion, approve position and authorize a budget amendment request transferring$18,800 from the contract services account to various accounts in the Parks and Landscape Maintenance Program. *McCLUSKEY FINAL ACTION: Approved (4-1, PP-no). A. ADJOURNED TO TUESDAY, NOVEMBER 29, 1994 AT 6:00 P.M. 4 Agenda Distribution List (10/25/94) I, Unpaid Subscriptions: I�IIIIIII �IIIIIII�N (All mtgs.unless o/w noted) II II�IIIIIII C of SNI [ NIS OBIS AIA President ll�/ ASI President 11" B..I.A. , Lynn Block Chamber of Commerce COUNCIL AGENDA Dick Cleeves/Chamber of Comm. H.Ovitt, Co.Spvrs.Chair Tuesday, November 22. 1994 - 7:00 PM Paul Hood, Co.Administra,tion Council Chamber, City Hall Housing Authority 990 Palm Street, San Luis Obispo KCBx KCOY KCPR: (2)Gen.Mgr.& News Dir. CALL TO ORDER: Mayor Peg Pinard KDDB KEYT PLEDGE OF ALLEGIANCE KGLW KKJG ROLL CALL Council Members Penny Rappa, Dave Roi KSBY KVEC Vice Mayor Allen K. Settle and Mayor Peg Library (front desk) Mustang Daily New Times (front desk) Pac.Bell/Brad Schram PUBLIC COMMENT PERIOD (Not to exceed 15 mt inutes otal] Pac.cas&Flet .co/B.Boyer Planning Comm. (8 Comm. Dev.) The Coundl`welcomes your input.::You may address the Council: so.calif.cas Co./Vic Sterling and gnnng rt46!::the"Crty Clerk prior to the meeting At this time,` Council of Govts./Ron DiCarli on mems thafare not on the'agenda or rtemson the Consent Agendl League of Women Voters State`1aw does i all0 Counclfto discuss or take action on 'issu� Telegram-Tribune (front desk) that members of the Couhcjl or:staff may briefly respond tostatem0 SLOCityEmp.Assoc/T.Girvin by persons exercising their public testimony rights (Gov:Code:§54S SLOFireBattChiefAssoc/S.Smith follow=up on such items Staff reports and other written documE SLOFirefightersAssoc/D.Wunsch referred to on this agenda`are on file in the City Clerk's Office in R SLOMMgmt-ConfEnpAssoc/D.Cox----- .I SLOPoliceOffAssoc/T.DePriest SLOPolStaffOffAssoc/T..Costa Denise Fourie, CHC Chair Citizens Ping. Alliance Earth Journal/Terry Dunnivent ECOSLO/Kurt Kupper COUNCIL LIAISON REPORTS (not to exceed 15 minutes) Res.forQual.Neighbor/C.Sanders Council Members report on conferences or other City activities: T Sierra Club/Gary Felsman. SLO Prop. Owners Assoc. -0 !9 wag i 19'ryanaLdaze- Dodie Williams/Candidate r-- - II.Subscriptions Paid or Env. Provided (reg.mtgs.only): EDA (Engr. Development Assoc.) Ellenburg Capital Corp. Fugro-McClelland :Hawkins/Mark-Tell Johnson, Cara © Council meetings are broadcast on KCPR,91.3 FM. The City of San Luis Obispo is, Local Government Services services,programs and activities. Telecommunications Devitt for the Deaf(805)781• RRM Design Grp./LeeAnne . �J the meeting if you require a hearing amplification device.For more agenda informatii Vista Information Services Wallace, John L. & Assocs. Walter Bros. Construction Co. Willdan Associates g:%groupslelerklagdlst.vp Council Agenda Tuesday, November 22, 1994 PUBLIC HEARINGS If you`have filled out a Speaker Shp, the Mayor will call you to the podium Please speak into the . microphone andgree your Name antl city of residence for the record P. ease limit your comments to 3 minutes, consultant andproject presentations limited to 10;rrij es If you challenge the issue an court, you may be hmrte . to raising only those issues you or someone else'raised`at this pUbGc f�eanr 9 as described below, or ut written correspondence tleGvered to the City before or during the public hearing ► 1. SOLID WASTE RATE REVIEW (MOSS/142 - 30 min.) Consideration of increasing solid waste rates by 8.6% effective January 1, 1995. (Continued from 11/15/94.) ♦ RECOMMENDATION: Adopt resolution increasing solid waste rates. Please bring your agenda report from the 11/15/94 meeting (Item #2). ► 2. PARK IN-LIEU FEES (STATLER/411 - 30 min.)1 Public hearing to consider a two-tiered park in-lieu fee structure based on the 1990 census average household size for single family dwelling (2.7 persons per household) and multi-family residential dwelling (2.14 persons per household): $3,280 for each single family residential unit; $2,520 for each multi-family residential unit. (Continued from 9/20/94 and 11/15/94.) ♦ RECOMMENDATION: Adopt resolution restructuring park in-lieu fees effective February 1, 1995. Please bring your agenda report from the 11/15/94 meeting (Item #3). ► 3. PLANNED DEVELOPMENT AMENDMENT - S HIGUERA (JONAS/463 - 1 hr.) Public hearing to consider a request for an amendment to an approved planned development at 2877 S. Higuera Street (PD 108-94) to allow government offices at the site; Lewis Wise, applicant. (Continued from 11/15/94.) ♦ RECOMMENDATION: By motion, deny the request based on the finding that it is inconsistent with the Land Use Element policies on governmental offices. Please bring your agenda report from the 11/15/94 meeting (Item #4). 2 Council Agenda Tuesday, November 22, 1994 COMMUNICATIONS (not to exceed 15 minutes) At this time,' any Council :Member or the City:'Admirnstrative. Officer mayask a 'cluestton for clanficat<on, make an announcement, or report briefly an his or her activrt�es _In atldfion, subject to Counal P6Iid6 and Procedures, they may provitle a reference to staff or'nther resources for factual information, requeststaff to°report back to the Council at a subsequeht meeting conceming any matter, or takeaction to direct staff to place a matter of business`on a future agenda'{Gov Code;X54954 2) BUSINESS ITEMS ► 4. GENERAL PLAN ANNUAL REPORT (JONAS/461 - 30 min.) Consideration of the 1993-94 General Plan Annual Report. ♦ RECOMMENDATION: By motion: 1) review; 2) direct staff to submit a copy of the report to the State Office of Planning and Research and Department of Housing and Community Development; and, 3) direct staff to initiate any General Plan amendments deemed necessary and appropriate. (Continued from 11/15/94.) Please bring your agenda report from the 11/15/94 meeting (Item #6). ► 5. LANDSCAPE MAINTENANCE SERVICES (McCLUSKEY/95-21) Consideration of an Invitation for Bids to furnish Landscape Maintenance Services estimated to cost $174,000 over a 29 month term of agreement. (IFB is available for review in the Council Office.) (Continued from 11/15/94.) ♦ RECOMMENDATION: Approve IFB and authorize the City Administrative Officer to award the agreement if the lowest responsible, responsive bid is below the cost estimate of $174,000. Please bring your agenda report from the 11/15/94 meeting (Item #C-4). ► 6. PARKS MAINTENANCE (MCCLUSKEY/811) Consideration of approving the addition of one new maintenance worker position in the Parks and Landscape Maintenance and transferring $18,800 from the contact services account to various accounts in the Parks and Landscape Maintenance Program. (Continued from 11/15/94.) 3 Council Agenda Tuesday, Novernber.22, 1994 0 RECOMMENDATION: By motion, approve position and authorize a budget amendment request transferring $18,800 from the contract services account to various accounts in the Parks and Landscape Maintenance Program. Please bring your agenda report from Ahe 11/15/94- meeting, (Item #C=9). A. ADJOURN TO TUESDAY, .NOVEMBER.29, 1994 AT 7:00 P.M.. 4. MEETING DATE d111INN 11 Ci�� of san LUIS oBiSpo Vovember 1994 COUNCIL AGENDA REPORT ITEM NUMBBi:/ FROM: John Moss, Director of Utilities Prepared by: Sue Baasch, Admuustrative Analyst v Cyndi Butterfield, Solid Waste Coordinator . SUBJECT: SOLID WASTE 1995 RATE REVIEW CAO RECOMMENDATION Adopt a resolution increasing solid waste rates by 8.6%, effective January 1,. 1995. DISCUSSION Overview Approval of this request will increase solid waste rates by 8.6%, effective January 1, 1995. For residential customers, the new rates will be as follows: Current Proposed 10/3/93 1/l/95 ■ Orange bag service Base charge $ 2.00/month $ 2.20/month Orange bag cost (assuming 1 bag/week) $ 4.00/month $ 4.40/month $ 6.00/month $ 6.60/month ■ Standard service-Wastewheeler $13.40/month $14.55/month ■ Premium service $18.25/month $19.85/month For commercial customers, the new rates have also been increased by 8.6% and are shown in Attachment B. This application and recommendation for rate increase follows the requirements in the Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates approved by Council on June 21, 1994. The required financial information and application from San Luis Garbage Company is included as Attachment C. Background In September 1993, Council approved a 3.18 percent rate increase for San Luis Garbage Company to pass through a January 1993 landfill tipping fee increase. Council also approved delaying other needed cost recovery until such time as a comprehensive evaluation of rate setting could be completed. Delay meant increasing the size of ultimate rate increase necessary. Preliminary data 'i°"�� ►�I�II�IP� U City of San WIS OBISp0 gjjS COUNCIL AGENDA REPORT Solid Waste Rate Review Page 2 from San Luis Garbage Company indicated a significant rate increase request in the range of 25 to 30 percent (depending on when the rate increase would be implemented) was likely. Due to the number of changes in the solid waste program—regional solid waste planning underway, the State's mandate for waste diversion, and escalating costs for service—staff, with the concurrence of San Luis Garbage Company, recommended a third party analysis of the solid waste rate setting process. San Luis Garbage Company agreed to defer a rate increase request until such time as the analysis could be completed. This approach has been very effective. With the guidance of the Ernst and Young, the City's solid waste rate setting consultant, staff and San Luis Garbage Company have worked closely together to develop an appropriate rate setting model. This model, Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates, was approved by Council in June 1994. Staff received the fust rate application under the approved manual in August. This application was reviewed by the same solid waste issues committee (composed of the Utilities and Finance Directors, Public Works and Utilities Analysts, and Solid Waste Coordinator) which met continuously during the development of the new rate setting model. The information in the application allowed City staff and San Luis Garbage Company staff to continue to analyze issues that had surfaced during the rate model development. We met a number of times to clarify and agree on the operating and financial information included in this final rate application. The result of this year long process is this request for an 8.6 percent rate increase. As provided in the model, the 1995 application is a base year application. Base year applications require a detailed submittal and review of past, current and future operating expenses. Once solid waste rates are set for 1995, the two following years, 1996 and 1997, will require less detailed interim applications. Interim year applications are intended to adjust only for cost of living changes and landfill tipping fee increases. Prior rate adjustments for the last eight years are summarized in the table on page 3. In effect, San Luis Garbage has not received an increase other than a pass through of a landfill tipping fee increase or adoption of a minimum monthly base charge for orange bag service since September 1991. From September 1991 to September 1994, the consumer price index (CPI) has changed by 8.9 percent. If the proposed rate increase is approved, orange bag customers will still be paying approximately $1.50 to $4.00 (19% to 38%) less than they did in 1990 when volume-based residential rates were implemented, depending on whether they were wastewheeler customers in 1990. (This assumes the orange bag,customers now use one orange bag per week.) ���� ► I�II�Ippp ��N City Of San LUIS OBISPO COUNCIL AGENDA REPORT Solid Waste Rate Review Page 3 SUMMARY OF SOLID WASTE RATE CHANGES SINCE 1986 EFFECTIVE PERCENTAGE APPLIED PRIMARY REASON FOR CHANGE DATE INCREASE IN TO RATE Jun 1, 1986 10.0% All rates Inflation, Liability insurance. Jan 1, 1987 10.0% All rates Inflation, liability insurance. Jul 1, 1988 12.6% All rates Tipping fee (increase to$8.50/ton). Apr 1, 1990 6.0% All rates Tipping fee (increase to$12.50/ton). Jul 1, 1990 10.0% Commercial Tipping fee (increase to$17.10/ton). Rates Oct 1, 1990 10.0% Resid: Implementation of volume-based rates (economy, Standard, wastewbeeler and premium service). Recycling Premium begins. Orange bag svc set at$1.00/bag. Svc. only Sept 1, 1991 18.0% Commercial Tipping fee (increase to$21.45/ton), Residential: recycling activities proceed, materials standard & processing facility developed, insurance costs. premium Orange bag service remains $1.00/bag. Oct 1, 1993 3.18% Commercial Tipping fee (increase to$24.55/ton). Orange bag Residential: service remains $1.001bag. standard & premium Jan 1, 1994 $2/month Orange Flat rate adopted of$2/month—allows tracking of all Orange Bag Svc Bag customers. Service Recycling and residential volume-based rates were implemented in 1990. The financial impact of those activities are reflected in the subsequent 18.0 percent rate increase in September 1991. - As will be shown in the discussion below, recycling and materials processing continue to be significant cost drivers in the need for a rate increase. ��i�i IIVIIIII�I�I�Nu�����ll city of San tins OBIspo MijS COUNCIL AGENDA REPORT Solid Waste Rate Review Page 4 Significant elements of this rate application Two particular elements became the focus of discussions during the rate review process: (1) how to account financially for the two years (1993 and 1994) when San Luis Garbage was unable to recover costs of service as the rate setting process was suspended while a new method was developed; and (2) how to segregate and analyze the costs of the recycling program, including the materials processing facility, to develop an understanding of true recycling costs. 1. 1993 and 1994. This base year application includes cost recovery for 1993 and 1994. Since base year adjustments are indicated when the operating ratio swings two percentage points in either direction from 92%, it was reasonable to evaluate past revenue shortfalls using a 94% operating ratio. The net shortfall ($292,821) is proposed as a pass through cost recovered evenly over the three year rate setting period ($97,607 per year). 2. Recycling and materials processing facility. The cost of providing the City's solid waste services increased significantly from 1990 to 1992, the time period when recycling collection and materials processing was implemented. In 1990, San Luis Garbage Company's total expenses were $2.96 million. In 1993, their total expenses were $4.38 million, an increase of 48 percent, largely attributable to the cost of providing the additional services. The materials processing facility now accounts for about 21% (or 1/5)--of the total general and administrative costs. The operating and financial data in the application led staff to recommend that San Luis Garbage Company begin to recover more of the facility costs through a tipping fee structure that would ensure all companies pay equivalent tipping fees when bringing material requiring sorting to the facility. The rate model allowed staff to pinpoint areas needing further evaluation. This will continue to assist us as we develop and evaluate cost-effective strategies for complying with AB 939. Key Assumptions in the Application A summary of the application's key assumptions is presented below. ■ Tipper Fees Tipping fees are projected to remain at$24.55 through September 1995, at which time they are projected to increase to $31.55, subject to Board of Supervisors approval. ■ Customer Counts Total customers, both residential and commercial, are projected to remain very similar to 1994 levels. The City normally projects a one percent growth in customer count, based on the City's General Plan. However, San Luis Garbage Company's records do show a decline. The other City Of SAn LUIS OBI SPO Hjj% COUNCIL AGENDA REPORT Solid Waste Rate Review Page 5 issue is the impact of customer migration from one type of service to another. If a residential customer moves from premium service to orange bag service, there is an impact on the revenue projections. In 1992, this became a significant factor for San Luis Garbage. Staff agreed that the customer base could be projected to remain fairly static, or even less than in prior years for some service types. In return, San Luis Garbage would not include migration as a financial factor, as it is somewhat of a self-fulfilling prophecy. Increasing the rates to account for migration may actually stimulate such migration. However, staff agreed that it should be closely monitored and will return to Council with a rate recommendation in six months if a pattern of customer migration is significantly affecting revenue projections. ■ Tori to the landfill Approximately 34,600 tons of solid waste material are projected to be collected in 1995. This is about a 10 percent decrease from 1993 and 1994 levels. ■ Tons to recycling Approximately 6,220 tons of recyclable material are projected to be collected and processed in 1995. This is an increase of about 23 percent from 1993 to 1994 and 17.8 percent from 1994 to 1995. ■ Operating Ratio - 92% The operating ratio effectively determines profit to the franchisee based on allowable costs. In 1995, the base year, the model provides an operating ratio of 92%. It is important to remember that profit is earned only on allowable costs. Profit is not allowed on pass through costs—tipping fees and regulatory charges. Certain costs, such as income taxes, charitable and political contributions, and entertainment expenses, are not allowed to be included at all. Corporate overhead is capped at $120,000 (in 1994 dollar). Survey results A survey of rates and services was performed to provide a test of reasonableness of the proposed rates. Surveyed cities included local area cities, as well as the other statewide cities typically used in other revenue and fee surveys performed by the City. The attached survey charts show that comparing garbage and recycling services and corresponding rates is not a simple matter. Varying components contribute to a community's total solid waste costs. Different community goals determine how those costs are allocated among customer types. Some of the variables which must be considered are tipping fees, franchise fees, hauling distances, whether collection containers are provided, residential and commercial rate subsidy issues, degree of collection automation, and the extent to which AB 939 programs have been im,plemented. -S �����a►i�Il�Ipp��N�u►���� city of San WIS OBISPO i COUNCIL AGENDA REPORT Solid Waste Rate Review Page 6 Compared with the state-wide cities, the City of San Luis Obispo's residential and commercial rates are very low. Within the County, the City's residential rates for collecting 90 gallons of solid waste per month are lower than north county cities, but slightly higher than south county cities where volume-based residential rates have not been implemented. Commercial rates are fairly consistent within San Luis Obispo county. The rates for a two-yard bin, collected once a week was used as the standard for comparison. Within the county, rates varied from $47 to $68. Among the state-wide cities, rates varied from $27 to $225. If the proposed rate increase is implemented, the 2 yard bin commercial rate in San Luis Obispo will be . $58.00. Based on this analysis, the proposed rates for the City of San Luis Obispo seem consistent within this geographic area and reasonable for the level of service provided. SUMMARY The recommended approval of the solid waste rate increase of 8.6 percent follows nearly a year. of detailed analysis. The analysis was conducted in light of the Council solid waste rate setting objectives of ensuring revenue adequacy to fully meet reasonable costs of service; providing for ongoing review and rate stability; and requiring requested rates be justified. The process showed the need to clearly identify the financial implications of new recycling and AB 939 programs. This ongoing evaluation will result in the implementation of the most cost-effective AB 939 activities. ATTACHNU74TS A. Resolution B. Commercial Rate Structure C. San Luis Garbage Company 1995 rate increase application D. Survey Charts ATTACMEW A RESOLUTION NO. (1994 SERIFS) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING SOLID WASTE RATES WHEREAS, the City Council of the City of San Luis Obispo approved the Rate Setting Manual Process and Methodology Manual for Integrated Solid Waste Management Rates on June 21, 1994; and WHEREAS, the City Council approved solid waste rate setting objectives at their April 11, 1994 study session; and WHEREAS, the objectives stated that the City will ensure revenue adequacy to fully meet reasonable costs of service, provide for ongoing review and rate stability, and require that requested rates be justified. WHEREAS, the 1995 solid waste base year application from San Luis Garbage Company has been reviewed and has been determined to meet the requirements adopted in the Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates. NOW, THEREFORE, BE rr RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Resolution No. 8222 (1993 Series) is hereby rescinded. SECTION 2. Chapter 4.48 of the Municipal Code is hereby amended as set forth in Exhibit A attached hereto. SECTION 3. The rates set forth in Exhibit A shall be effective January 1, 1995. On motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: -7 Resolution No: (1994 Series) Page 2. The foregoing Resolution was adopted on this _____ day of _ 1994. -_ Mayor Peg Pinard ATTEST: Diane Gladwell,, City Clerk APPROVED ASTO FORM: Jensm, —Attorn_ey. A1TACEEM B CITY OF SAN LUIS OBISPO RATE SCHEDULE FOR SOLID WASTE COLLECTION AND DISPOSAL 1/1/95 MULTI-UNIT RESIDENTIAL DUMPSTER CONTAINERS (PER MONTH) size of COLLECTIONS PER WEEK eordairrer (cubic yards) 1 2 3 4 5 6 7 1 $58.00 $85.00 $103.00 $14200 $178.00 $199.00 $256.00 1.5 67.00 97.00 122-W 161.00 192-W 209.00 295.00 2 77.00 109.00 142.00 17&00 207.00 221.00 336.00 3 95.00 134.00 184.00 236.00 308.00 33200 447.00 4 113.00 171.00 24200 328.00 410.00 444.00 553.00 6 155.00 237.00 33200 491.00 566.00 625.00 738.00 8 1 199.001 293.001 444.001 655.001 817.001 885.00 I 999.00 The rates stated above for dumpster containers shall include the monthly container rental fee. COMMERCIAL GARBAGE CANS (PER MONTH) number COLLECTIONS PER WEEK of cans 1 2 3 4 5 6 7 1 $12.00 $21.00 $30.00 $34.00 $36.00 $40.00 $45.00 2 15.00 30 40.00 44.00 47.00 52.00 60.00 3 20.00 36.00 49.00 53.00 57.00 60.00 71.00 4 23.00 42.00 58.00 6200 68.00 73.00 86.00 5 29.00 47.00 66.00 7200 80.00 86.00 103.00 6 31.00 53.00 73.00 8200 92.00 101.00 118.00 7 35.00 60.00 81.00 94.00 105.00 113.00 134.00 8 .39.00 66.00 90.00 103.00 116.00 129.00 149.00 9 . 43.00 71.00 97.00 111.00 126.00 141.00 167.00 10 46.001 77.001 106.001 123.00 1 140.001 155.00 I 18200 Mw mran volume and weight per garbage can:35 gallons and e0 pounds AdcNorad charge Per can per sol r:$4.00 �-9 Rate Schedule for Solid Waste Collection and Disposal-1/1/95 Page 2 COMMERCIAL WASTE WHEELER CONTAINERS (PER MONTH) number COLLECTIONS PER WEEK Of aontwners 1 2 3 4 5 6 7 1 $21.00 $30.00 $36.00 $49.00 $61.00 $69.00 $90.00 2 40.00 59.00 71.00 98.00 123.00 138.00 178.00 3 46.00 67.00 85.00 110.00 134.00 146.00 205.00 4 53.00 75.00 98.00 123.00 143.00 154.00 233.00 5 60.00 83.00 112.00 143.00 179.00 19200 271.00 6 66.00 94.00 129.00 164.00 213.00 231.00 309.00 7 7200 105.00 147.00 197.00 249.00 270.00 346.00 8 80.00 118.00 168.00 227.00 285.00 308.00 383.00 9 86.00 129.00 183.00 256.00 311.00 338.00 461.00 10 94.00 141.00 199.00 265.00 339.00 369.00 537.00 11 101.00 15300 214.00 312.00 365.00 401.00 614.00 12 1 108.001 164.001 231.001 340.00 1 393.00 1 433.00 1 69200 In add'i'tion to the coliedon reins smEed above for waste wheeler containers,there shat be charged a monft renlsl fee for each container. COMMERCIAL DUMPSTER CONTAINERS (PER MONTH) eke of COLLECTIONS PER WEEK eontWner (cubic yards) 1 2 3 4 5 6 7 1 $43.00 $65.00 $77.00 $106.00 $134.00 $149.00 $19200 1.5 50.00 73.00 9200 119.00 145.00 157.00 221.00 2 58.00 81.00 106.00 133.00 155.00 167.00 251.00 3 71.00 101.00 140.00 178.00 231.00 249.00 333.00 4 86.00 129.00 18200 246.00 308.00 33200 416.00 6 117.00 178.00 249.00 368.00 425.00 469.00 553.00 8 1 149.001 220.00 I 33200 1 481.00 614.001 664.00 1 749.00 The was elated above for dumpster cont Wnem shag Include the montldy container rental fee. Rate Schedule for Solid Waste Collection and Disposal- 1/1/95 Page 3 UNSCHEDULED EXTRA COLLECTIONS FOR COMMERCIAL CUSTOMERS AND MULTI-UNIT RESIDENTIAL DUMPSTER CUSTOMERS $15.00 1 cubic yard(minimum charge) $19.00 2 cubic yards $28.00 3 cubic yards $37.00 4 cubic yards SINGLE FAMILY and MULTI-UNIT RESIDENTIAL VOLUME-BASED RATES ECONOMY RATE W-MImonth for collection service $1.10 per special 33-gallon beg distributed by San Luis Garbage Company (Payable when begs are lssued) STANDARD RATE $1455 per month for ane westswheeler container collected once each week PREMIUM RATE $19.85 per mordh for up to one cubic yard(sic standard garbage cans)collected once each week Mwmnuro volume and weight per garbage can:35 gallons and 80 pounds SERVICE AWAY FROM THE STREET CURB $5.00 additional per month per can or container EXTRA COLLECTIONS ON REGULAR COLLECTION DAY WITH GARBAGE TRUCK $2.00 per standard garbage can or equivalent volume (Not available for economy service customers) LATE MAKEUP COLLECTIONS WITH GARBAGE TRUCK(phone call required) $5.00 per trip plus$200 per eta garbage can or equivalent volume Not available for economy service custorners) of -/r Rate Schedule for Solid Waste CoAect)on and Disposal=111195 Page 4 D(TRA COLLECTIONS WITH PICKUP OR FLATBED TRUCK(Phone call required) $11 M Per trip Plus: $200 per garbage can or equivalerit;vehuiie(amaurts over sa earfe by.quotation) $10.00 per appflarree $3.00 per piece of fu nftwe. $1.50 per rni*ees or boxy'nm (Economy service ammmers must pay in advance.) ATTACHMM C City of Sen U&of quo Base Year Rate Adjustment Application Summary ................. ...... Requested ........................ 1. Rate Increase Requested 8.6% .................. x . ... ... ........ .. ..................Rate.......... ............ Current Increased Adjustment New Rate Schedule Rate Rate (a) Rate Single Family Residential 2. Economy Service (collection) $2.00 $2.171 $0.031 $2.20 Economy Service(orange bags) $1.00 $1.09 $0.01 $1.10 3. Standard Service $13.40 $14.55 $0.00 $14.55 4. Premium Service $18.25 $19.82 $0.03 $19.85 (a)Calculated rates are rounded up to the nearest$0.05. 5. Multiunit Residential and Non—residential Rate increases of 8.6% o: will be applied to all rates in each structure with each rate rounded up to the nearest$1.00. ............ ...... ............. Ice i1i .................................. . ....................... .... ..... . To the best of my knowledge,the data and information in this application is complete,accurate,and comistentwith the instructions provided by the City of San Luis Obispo. Name: TORE 1,004,4277A- Title: �/7 Signature: Date: AP12-elvY U� Fiscal Year: 1-1-95 to 12-31-95 Pg. 1 of 6 Cihyc(&nLa60K" Base Year Rate Adjustment Application Financial Infonnation Historical Current Projected Base Year ! 1992 1993 1994 1995 1996 (from P&4) ........... to.. . ... ............................ ........ . ........ 6. Direct Labor $1,131,373 $1,162,712 $1,209,705 $1,240,058 $1,289,660 7. Corporate Overhead $120,000 $120,000 $120,000 $123,660 $128,606 8. Office Salaries $754,694 $788,443 $938,625 $866,706 $901,375 9. Other General and Admin Costs $1,344,181 $1,349,637 $1,362,734 $1,368,799 $1,423,551 10 Total Allowable Costs $3 350 $3�420 792 31064 9223 $3743,192 Seatton II Mlowable.Operatrng profit. 11. Operating Ratio F-9-40/b�F 94%6��F 920/7, 12. Allowable Operating Profit �$325 4()5 Seen.................... ....... ........ .... ....11 Pass am .... .. 13. Tipping Fees $773,913 $789,099 $849,087 $927,314 $1,091,188 14. Franchise Fees $166,721 $171,992 $202,014 $202,014 $226,621 15. 1993 and 1994 $97,607 $97,607 16. Lease Pmts to Affiliated Companies 17. Total Pass Through Costs $940 634 77s=961091 $I $1,415 4=16 1051�101 . ............... Section Iv IK imiii lt"ukti"nt ... ..... 18. Revenue Requirement $4,504,728 $4,600,231 $4.807,552 $5,139,13 4 $5 484 103 19. Total Revenue Offsets $4,339,824 (from Pap 3) h6 W(Sirixits). SiCIACM.V�MCCS kfk 20. Net Shortfall (Surplus) $330 10 21. Total Residential and Non—residential Revenue without increase in Base Year(pg.3,lines 32+40) 22. Percent Change in Residential and Non—residential Revenue Requirement 23. Franchise Fee Adjustment Factor(I — 6.0 percent) 24. Percent Change in Existing Rates Fiscal Year. 1-1-95 to 12-31-95 Pg. 2 of 6 aty of Sm LA&ObiTo Base Year Rate Adjustment Application Revenue Offset Summary Seetron............. .VII-Revenue ... ... .... ........... Historical Current Projecte E Base Year 1[ 1996;;:1E;;:1E;;�J 1995 Residential Revenue(without increase in Base Yr.) Current Projected Price per No.of Account Type Mo.'s Accounts Packaac Packages Total 25. Economy Svc $2.00 12 $10.001112,50411 $874109 26. Standard Svc $13. 0 12 F—5,436 EW $18.25 27. Premium Svc M 12 8725 $114756 Adj unincorp/supplemental m A�� 28. Single Family Residential FFs-1,-20-1-,-8-85-$1,180,8371$1,337,331 $1376 938 $1495 355 Multiunit Residential Dumpster 29. Number of Accounts 3901 390 390 39011 30. Revenues 11 $5902 491 $580-2" 1 Itfiffi-106 JE_$ _�Z :6:0:j L106 &$660 403 31. Less Allowance for Uncollectible Resid Accounts $0 .32. Total Residential Revenue11$1,792,13411$1,7=7001 $1945 437 $1 985044 $ 155 758 Non-residential Revenue(without increase in Base Yr.) Account Type Non-residential Can 33. Number of Accounts 1601 160 1601 160 34. Revenues $82 034 19=11 $84 516 $84 516 $91784 Non-residential Wastewheeler 35. Number of Accounts 254 254 254 254 36. Revenues $109 779 9 6=14 $113 100 $113 100F$_1272E7fl Non-residential Dumpster 1035 37. Number of Accounts 38. Revenues $1771 751 $1 788 328 $1 895,983 $1895,983 $2 059 038 39. Less:Allowance for Uncollectible Non-residential Accounts =$O T 40. Total Non-residential Revenue 11$1,963, 6411$1,979 8573 599 $2 X73 649 Processing Facility Revenues 41. Scrap Pmts for all Materials Sold 42. CA Redemption Value(CRV)/Procsg Fee 43. Fees from Other Cities F_$_55 1=90 44. Revenues from Processing Facility $396 041 $515 831 $528 528 $568 528 $552 253 45. Interest on Investments $16 610 $8=833 46. Other Income $171 475 1=_35807 $127 994 $152 575 $152 575 46. Total Revenue Offsets1=0,525 Fiscal Year. 1-1-95 to 12-31-95 Pg. 3 of 6 02-/� City on;=LA"Owwpo Base Year Rate Adjustment Application Cost Summary for Base Year For Information Purposes Only tow. :Hue YearCost .......... Description of Cost CSU Adjacent Processing Total =Cit SLO Unincorp. Facility Labor $592,9031 $41,02711 24 $1379691 $386,635 Payroll Taxes $81;524.. ::1 $42,0801 $3,00211 $9:7691 $26,673 48. Total Direct Labor S-1, 0,0581 $634,9831 $44,0291 $147,738 $413 308 49. Total Corporate Overhead $123 6601 $93,289 Office Salary `1$796003 $653,824 $8,910 $61,645 $71,624 Pa oII Tates $20`703€ $58 875 $80211 $5.55111 $5,475 , 1 , 11 50. Total Office Salaries S866,706] $712,6991 $9,7121 $67,1961 S77,099 Computer Services $22;847: $20,622 $281 $1,944 Depreciation on Bldg and Equip $73;243 $10,325 $141 $973 $61,804 Depreciation on Trucks/Containers ....:..:.:.3197;257: $178,044 $2,426 $16,787 . ............ Dues and Subscriptions .. $12,145 $166 $1,145 .. ... ................. Equipment Rental Ernst&Young .$17,000: $17,000. . .. ......... Gas and oil 141506: $96,354 $7,806 $24,088 $13,258 1 Interest Expense $32;711. $24,366 $332 $2,297 $5,716 Laundry ....414,133. $8,882 $121 $837 $4,293 . .... .. . Legal and Accounting ............ $14,663 $200 $1,382 .......... Miscsellaneous and Other $1,798 $25 $170 Office Expense $63,459: $55,549, $757 $5,237 $1,916 Operating Supplies $146,775: $96,259 $1,312 $9,076 $40,128 Other Insurance $5,600 . ..:$26,166. $14,956 $1,999 $3,611 Other Taxes $35,529 $26,686 $3,095 $5,593 $155 ......... ....... Outside Services .. :::.4123,232. $31,459 $429 $2,966 $88,378 Public Relations and Promotion .......449,808. $44,956 $613 $4,239 Rent $14.138 $8,492 $856 . $1,780 $3,010 .. .. .............. ... Telephone $40,057 $33,073 $451 $3,118 $3,415 Travel 45 61< $4,322 $59 $407 $493 Truck Insurance 54,683 $36,102 $4,187 $7,566 $6,828 Truck License 25791 3055 5520 547 Truck Repairs $146,778 $17,024 $30,7601 $23,963 Utilities $13,121 $1 0 $179 , $1,2371 $11,J305 51. Total Other Gen/Admin Costs 52. Total Tipping Fees $57,2151 $86,6111 $3,802 53. Total Franchise Fee 54. Total AB 939/Regulatory Fees 55. Total Lease Pint to Affil Co.'s 56. Total Cost $765,018 FIsCal Year: 1-1-95 to 12-31-95 Pg. 4 of 37- �-/6 Cityof&a Luis Obispo Base Year Rate Adjustment Application Base Year Revenue Offset Summary For.Information Purposes Only .............. . ............... . ...................... ........ me: avenue ... .......... ........ .............. ........... ....................... Description of Revenue CSU Adjacent Processing Tota! Ci SLO Unincorp. Faci= 1 Residential Revenue (without increase in Base Year) 57. Single Family Residential Multiunit Residential Dumpster 58. Number of Accounts 3901 1 59. Revenues $608,10611 1 1 60. Less Allowance for Uncollectable 0I 1 11 61. Total Residential Revenue 7$717788737_1 $0 $196 673 Non—residential Revenue(without increase in Base Year) Account Type Non—residential Can 62. Number of Accounts 160 16131 , 63.. Revenues $84 5115 Non—residential Wastewheeler 64. Number of Accounts .:Slj3�,J nn $113,1001 65. Revenues 254E Non—residential Dumpster 66. Number of Accounts 1110 755 1271 2281 67. Revenues $1'895983::IL $1,323,3801 $223,2401 $349,3631 Ell 68. Less:Allowance for Uncollectible Non—residential Accounts $01 $ol 69. Total Non—residential Revenue Processing Facility Revenues 70. Scrap Pmts for all Materials Sold $432aP... $432,257 . .............. ....... 71. CA Redmpt Value((:RV)/Proc Fee 9 ......... $58,65 72. Fees from Other Cities > <i$77,612' $77 6 12 73. Revenues from Proc Facility $568 528 0 1 $568,5281 74. Interest on Investments �$8�O13 1 $991 $7661 1 75. Other Income 1377�14 1 $1,6941 $13,167T-------71 ........... 76. Total Revenue Offsets $4,808,624 1 $3,455,094 1 $225,0331 $559,9691 $568,528 Fiscal Year. 1-1-95 to 12-31-95 Pg. 5 of 6 City of Sm tj&Obi*o Base Year Rate Adjustment Application Operating Information Historical Current ::]F_ProL'ected Percent Percent Percent F�_m;�Year 1992 Change 1993 1 Cbanste Change L_1_99�51t2 1994 1996 ......................... ........ ............. . ................ .ctioIL::Ix—: ler Residential 77. Accounts 9,616 2.8% 1 9,8881 —0.8% 1 9,8041 —0.8% 1 9,7261 0.0% 1 9,7261 78. Routes 6 83% 7 0.0% 7 0.0% 7 —7.7% 6 79. Tons Collected 14,057 —8.1% I2,924 0.2% 12,9441 —9.2% 1 11,7591 0.0% 1 11,759 80. Direct Labor Hours 20,800 5.0" 21.940 0.0% 21,840 1 0.0% 1 21,8401 0.0% 1 21-840 Non—residential 81. Accounts 1,621 —2.2% 1 1,5861 —3.9% 1 1,524 1 —3.9% 1 1,4651 0.0% 1 1,465 82. Routes 9 0.0% 1 91 —11.1% 1 81 0.0% 1 81 0.0% 1 8 83. Tons Collected 23,985 8.0% 1 25,9111 1.5% 255301 —10.6% 1 22,8271 0.0% 1 22,827 84. Direct Labor Hours 27,783 0.0% 1 27.7831 —75% 25,7031 0.0% 1 25,7031 0.0% 1 25,703 Recyclable Materials — Other Gfics 85. Tons—sort material 658 157.0% 1 1,6911 15.3% 1 1,9491 —12.8% 1 1,6991 —135% 1 1,299 86. Tons—n/sort materia 874 3383% 1 3,8311 —35.8% 1 2,4611 —20.3% 1 1.9611 —153% 1 1661 Recyclable Materials — aty of SLO 87. Tons—sort material 11 1,1921 8.0% 1 1,2871 —8.9% 1 1,1721 10.0% 1 1,2891 10.0% 1 1,4181 88. Tons alsort materiol 2,8551 53% 1 3,0071 36.7% 1 4,1101 20.0% 1 4,9321 20.0% 1 5,918 Fiscal Year. 1—1-95 to 12-31-95 'Pg. 6 of 6 01 IY& IM C. u p r r i Y7 a r1• a r m nl r W m .a+• . til M a0 T y� fel 11 1 P M Y7 Y1 1 O• f Qa M IiJ O 11 I � O S I 17 Y7 I q ;I .Ydp7 f' cs �� I , M , Y7 f I •.� 11 D m ^ m + P 1 17 m I1 •m M 1 ' II N ;� Cu 1 a.V I 11 y11•�1 � 6 M M Y I PJ II 'Ir n A iy IiJ of lyj or i I C. m 1" ;I 0 camps m L n j .y i0i .1 all ; r Y7 4 m m ain np m + I a AT a G a a yq'• i9 n M r'R Oma S CD Ya u3 ; Gi M. m f` cn I Gi N Ica T P IR 11 .~4 t Y7 I II I'M ,.ti// pa Cuy11'-�1 .p 1u1 :•± ) f + ii cu r m L � 1111 I all N 0 N all ; I; It T Q• Y7 1 1 T Q• T Y7 I Y'f1 11 1 II I M1�1'j Y7 N O I Iy Y7 A II M f+l - - II cu in a1 11.1 6 ON II rOu 1p>q m. ap �. 111 ''11I 1paq a m to < 11 7C am M1 u 1C I a� m 1 IM1 II M MM 11 I '•t fy I II 1f1 N N •P Y7 Y O lu N Yl 1 11 p• ..1 a0 M1 117 I P 1� b M1 Y7 I P 1 Cu 4'U M t ( N CIA I it a• pia OC L M m I a^ N Is `T I M CG 117 I M11 uli Is p� yj y �+ Y7 wi •>r I alp II Yl = 19 � 1Z II i N ( M f•t No II '~1 M 1 11 Y7 'Y'3 rM1 � li NIP m ,N. �' b -rm N.all av 1 + Ili aV av 1 r m I o G a a I m u m r m P = Ii ora a w PM1 1 a as ; r 11 EE1 + 1 ,,1 a1 AJ I 11 1 aL 1 i V ; I; 1J��y Q ¢ N W T Ul I In L) � 8 C096 ul Gr 6 N H 1¢l O a���/ � �9 AMCHHM D zm• �Z= z z z ZY z ZCd a U y s � s U 0 - 41 N w u C7 a:F 8 g 8 g g n = � m m m o r v m Ve N M M N M M N N V .X ry `g 5 e 7—.? e 2 u s 5mmm O M - S N a N > N - TL + phiR Y01.N OO�_� rnm ay li a� N O � 0 0 �O f O N O � 1�1 N • V] m S a 5 N N N N M N N O b[y N N N N h m V G . F tr7 v v v v e � w� � • U O s s z b S U S S m ° 0 4 r • N Y ce ce tt ce ce ce N h M V1 N h Z N � 0O O pl F_ m Vm m NJ 0 t V m O Z • • Y L d7 cc y t 14 _S V i 'ZO ! E d W ! •� a�o a a°Q �• y y }; y� tyy� til Lil {ii rA LU lit a � r a } w.. z� Y � WA LU .9 V VJ 4i W LU U wY Yy Y �y Y � Y Yy i• W O rA ; 8 8 X E Z ` N N N N N N N N rn 8z VN N N N N N V e O eR ti � C 6 9 BOO pp O� E N e� Oo O O pNp b Y1 O• N � Ol N Nm N N N • M N m N» N N Oy r a rA i t ° W IR fi{i N O U N N ` N_ � N a r `u E E 5 z m m ° W S 5g z s W3 �a� MEF"'G AGENDA DAT ITEM # �. //-Zt•IY MEMORANDUM November 14, 1994 To: John Dunn, City Administrative Officer From: John E. Moss, Utilities Director�/� Subject: Notice of pending solid waste rate increase. Attached is the notice which was sent out regarding the proposed solid waste rate increase. A copy of the mailing list is also attached. I thought it may be useful-f _ ouncil to have this prior to the meeting tomorrow night, just so that they are a are that we ha provided some extra public notice. If appropriate, this could be placed in a Council red fi 4 city of sAn tuis oBispo 955 Morro Street • San Luis Obispo, CA 93401 November 9, 1994 NOTICE REGARDING APPLICATION FROM SAN LUIS GARBAGE COMPANY FOR AN 8.6% INCREASE IN SOLID WASTE RATES, EFFECTIVE JANUARY 1, 1995 The Council for the City of San Luis Obispo will consider approval of a request from San Luis Garbage Company for an 8.6% increase in solid waste rates (effective January 1, 1995) at its regular November 15, 1994 Council meeting. The requested rates are as follows for residential customers: RESIDENTIAL RATES PROGRAM OPTION CURRENT RATE PROPOSED RATE Orange bag svc (assumes 1 bag/week) $6.00/month $6.60/month Standard svc (wastewheeler) $13.40/month $14.55/month Premium svc (6 cans) $18.25/month $19.85/month For commercial customers, the requested rates are also increased by 8.6% (rounded to the next dollar). A copy of these proposed rates is available from San Luis Garbage Company or from the City's Utilities Department. Other than the $2 per month flat charge approved for orange bag customers in January 1994, there has not been a solid waste rate increase to cover the changes in the cost of living since September 1991. The Consumer Price Index increased by 8.9% from September 1991 to September 1994. The 3.18% rate increase in October 1993 was to pay for the increased cost of dumping at the landfill, an increase approved by the Board of Supervisors in January 1993. (Landfill tipping fees have increased regularly to pay for required environmental protections and mandated regional solid waste planning.) In addition to the impact of rising costs of these services, the services themselves have expanded. Our city, like all California cities, is responsible for reducing landfilled waste by 25% in 1995 and 50% by the year 2000. Each jurisdiction must plan and implement specific programs to reach these goals. To minimize these costs, the City has joined with other County cities to form a joint powers authority to implement regional solid waste programs. Garbage collection has become solid waste collection, recycling and recyclable materials processing, and our solid waste rates must pay for all the costs of providing these services. �� The City of San Luis Obispo is committed to include the disabled in all of its services. programs and activities. Telecommunications Device for the Deal (805)781.7410. NOTICE - Solid Waste Rate Increase Application Facts about this rate increase request: ■ One year ago, preliminary data indicated that a rate increase of 25 to 30 percent might be necessary to provide adequate revenue to offset San Luis Garbage Company's anticipated expenses. Through the adoption of a new rate setting process and model, and a year of detailed analysis, City staff and San Luis Garbage Company staff have come to agreement that the 8.6% rate increase is reasonable. ■ Orange bag service customers began paying a flat charge of$2 a month in January 1994. This was the first rate increase for these customers since the program's inception in October 1990. If the proposed rate increase is approved, orange bag customers will still be paying $1.50 less. (for an equivalent volume of 30 gallons per week) than they did in 1990 as a typical residential customer. ■ Garbage service is mandatory for all occupied developed properties in the City of San Luis Obispo. A monthly charge for orange bag customers ensures that all customers are paying for the provision of garbage services. ■ The cost of providing the City's solid waste services increased significantly from 1990 to 1992, the time period when recycling collection and materials processing was implemented. The materials processing facility now accounts for about 115 of the total general and administrative expenses. If you have any questions concerning the proposed rate application, or would like additional information on this issue, please do not hesitate to contact the City Utilities' Department at 781- 7215. S' r ly, John Moss Utilities Director NOTICE REGARDING APPLICATION FROM SAN LUIS GARBAGE COMPANY FOR AN 8.6% INCREASE IN SOLID WASTE RATES, EFFECTIVE JANUARY 1, 1995 This notice was mailed to the following people/organizations: ARC CHAIR JOINT USE COMMITTEE CHAIR Curtis Illingworth John Bria AUGUSTA STREET NEIGHBORHOOD LAGUNA LAKE NEIGHBORHOOD GROUP ASSOC. Mary Lou Johnson c/o MaryAnn Michaels BIA LEAGUE OF WOMEN VOTERS Lynn Block c/o Janet Kourakis BUILDING INDUSTRY ASSOC Steve McGrath OF THE CENTRAL COAST Dennis Moresco OLD TOWN NEIGHBORHOOD GROUP Leo Pinard BUSINESS COALITION Tom Brown PLANNING COMMISSION Dodie Williams CHAMBER OF COMMERCE Brett Cross Dave Garth Gilbert Hoffman Barry Karleskint CHORRO/MURKY NEIGHBORHOOD Charles Senn GROUP Mary Whittlesey Carol Tangeman Grant Williams CITIZEN PLANNING ALLIANCE PROMOTIONAL COORDINATORY c/o Carla Saunders COMMITTEE CHAIR Jack Gatz ENVIRONMENTAL QUALITY TASK FORCE RESIDENTS FOR QUALITY Dr. Tom Ruehr NEIGHBORHOOD FOOTHILL NEIGHBORHOOD ASSOC RRM DESIGN GROUP Barbara Collins Lee Anne Edward s-Hagmaier HOUSING AUTHORITY CHAIR SAN LUIS DRIVE NEIGHBORS Stephen R. Nelson c/o Bonnie Garritano HUMAN RELATIONS COMMITTEE SLO PROPERTY OWNERS ASSOC CHAIR Carol Florence, President Randy Baudendistel (continued on reverse) SLO ASSOC OF MANUFACTURERS & DISTRIBUTORS Attn: Maggie Cox SLO BOARD OF REALTORS ASSOC