HomeMy WebLinkAbout05/21/1996, 1 - INTEGRATED SOLID WASTE RATE REVIEW REFUSE COLLECTION AND HAULING, RECYCLING, AND GREEN WASTE SERVICES council M�,n,
aGEnba REpoRt 21 19 6
CITY OF SAN LUIS O S I S P O
FROM: John Moss, Utilities Director
Prepared By: Sue Baasch, dministrative Analys*
Ron Munds, Utilities Conservation Coordinator
SUBJECT: INTEGRATED SOLID WASTE RATE REVIEW
Refuse Collection and Hauling, Recycling, and Green Waste Services
CAO RECOM CENDATION
Adopt a resolution increasing integrated solid waste rates by four and two-tenths percent (4.2%),
effective July 1, 1996; and by three and one-half percent (3.5%), effective January 1, 1997.
DISCUSSION
Overview
This report presents the recommended increases to the integrated solid waste rates for July 1, 1996
and January 1, 1997 as set forth in Exhibits A and B to the proposed resolution. A unified solid
waste rate is proposed to pay for ongoing franchised refuse hauling and collection services,
contact recycling services and the implementation of green waste services. This recommendation
is consistent with the adopted provisions of the 1994 integrated solid waste rate setting model
which provides for annual rate review and adjustments.
The deferral of the 1996 solid waste rate setting process pending the outcome of the competitive
process for City residential recycling and green waste services was approved by Council on
October 3, 1995. At that time, Council also authorized reimbursement to San Luis Garbage
Company for any revenue loss caused by the delay of the 1996 rate review process. In January
1996, Council awarded the recycling and green waste services contracts to San Luis Garbage
Company (SLG), the City's franchisee for refuse collection and hauling. This action allowed the
1996 rate review to proceed and to combine component parts paying for each service into a single
unified customer rate. In summary, it should be noted that the proposed 1996 rate increase
follows an eighteen month period of no solid waste rate adjustments.
The recommended 4.2% (July 1, 1996) rate increase combines a 1.8% adjustment for cost of
living and pass through costs changes with a 2.4% adjustment for the July implementation of a
city-wide green waste program. The recommended 3.5% (January 1, 1997) rate increase
combines a 0.7% adjustment for cost of living and pass through costs changes with a 2.8%
adjustment for a full year of green waste services.
Council Agenda Report - Integrated Solid Waste Rate Review
Page 2
The 1996 rate application and information is included as Exhibit C. As this would normally be
the time to consider the 1997 rates, this application is included as Exhibit D. Both 1996 and 1997
are interim years under the rate setting process, and are adjusted only for cost of living changes,
landfill tipping cost projection changes and green waste program costs. A full base year
application will be presented for Council action in July 1997 for implementation on January 1,
1998, and will include any changes resulting from the current franchise negotiations for refuse
collection and hauling.
For residential customers, the integrated rates are proposed as follows:
MONTHLY RATES
Current Proposed Proposed
1/1/95 7/1/96 1/1/97
■ Orange bag service
Base charge $ 2.20 $ 2.30 $2.40
Orange bag cost (assuming 1 bag/week) 4.40 4.60 4.80
$ 6.60 $.6.90 $7.20
■ Standard service-Wastewheeler $14.55 $15.20 $15.75
■ Premium service $19.85 $20.70 $21.45
For standard service residential customers, this reflects a 65 cent increase in July over their
current charge, and a 55 cent increase in January 1997.
A full schedule of the recommended July 1, 1996 residential and commercial rates is shown in
Exhibit A and the recommended 1997 schedule in Exhibit B.
Background
Rate Setting Model
The rate applications and recommendations for rate increase follow the requirements in the Rate
Setting Process and Methodology Manual for Integrated Solid Waste Management Rates adopted
by Council on June 21, 1994. The manual was developed when the prior system of rate review
("the Peasley method") was no longer adequate given the significant legal and programmatic
changes affecting solid waste systems. The adoption of the manual bound the contractor and the
City to a method of determining revenue adequacy, as well as to a process and schedule for rate
application review.
While this ensures rate payers that rate reviews are consistent, it also obligates the City to approve
rates that are consistent with this process and method. Under the model, base year applications
are done every third year and require a detailed submittal and review of past, current and future
/-Z
Council Agenda Report - Integrated Solid Waste Rate Review
Page 3
are done every third year and require a detailed submittal and review of past, current and future
operating expenses. Less detailed interim applications are required in year two and three of the
cycle, and are intended to adjust only for the prior year cost of living changes and adjustment to
landfill tipping cost projections. A base year analysis was done in the 1995 rate review, so 1996
and 1997 are considered interim year applications.
At the time of adoption, staff noted that although the manual established revenue adequacy
requirements based on the community's solid waste activities and goals, it would not restrict the
City's future ability to modify how those services were provided. That has indeed been shown
to be the case, as recycling is now a separate service contract and green waste services will be
implemented under its own contract. The total cost to be allowed for these services was approved
by Council at the time of contract award to SLG: the cost for residential recycling services was
not to exceed $46,695 in year one and $51,022 in year two; and the cost of adding Green Waste
services was to not exceed $217,000 in year one and $219,000 in year two.
Green Waste Services
As part of this rate review, staff met with SLG to discuss their green waste proposal projection
of 7,500 tons of green waste to be collected annually. The result of these discussions are the costs
identified in Exhibits C and D showing green waste costs for 1996 and 1997. For the last six
months of 1996, green waste services are estimated to cost $82,250, based on half a year of
operations and 2,000 tons of collected green waste. For the full year of 1997, green waste
services are estimated to cost$181,500, based on a full year of operations and an estimated 5,000
tons of collected green waste. By 1998, the goal is to collect 7,500 tons of green waste.
Green waste services will be offered in phases to all residential and commercial customers in July.
While the SLG's original proposal was to provide only residential green waste services, staff has
requested and SLG agreed to offer green waste services to commercial customers, as well. All
customers participating in the program will be provided a 90-gallon wastewheeler for green waste,
which will be collected weekly. Residential customers currently paying for standard refuse
service, a 90-gallon wastewheeler, will use that wastewheeler for green waste and will receive a
60-gallon wastewheeler for refuse collection.
Key Provisions in Raze Setting Methodology
■ Rates to be considered annually in context of three year rate setting cycle. Base year
applications are submitted by the service provider every three years, and interim year
applications are submitted each year between the base year to adjust for inflation and tipping
fee changes. Ongoing annual review promotes rate stability and revenue adequacy.
■ Interim year rate adjustments to be based on a weighted average change in controllable
and pass through costs. Inflation is derived from the most recent historical change in the
national consumer price index and is applied only to the percentage of total costs that are
defined as "controllable", a term including allowable costs and profit. Pass through costs are
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Council Agenda Report - Integrated Solid Waste Rate Review
Page 3
operating expenses. Less detailed interim applications are required in year two and three of the
cycle, and are intended to adjust only for the prior year cost of living changes and adjustment to
landfill tipping cost projections. A base year analysis was done in the 1995 rate review, so 1996
and 1997 are considered interim year applications.
At the time of adoption, staff noted that although the manual established revenue adequacy
requirements based on the community's solid waste activities and goals, it would not restrict the
City's future ability to modify how those services were provided. That has indeed been shown
to be the case, as recycling is now a separate service contract and green waste services will be
implemented under its own contract. The total cost to be allowed for these services was approved
by Council at the time of contract award to SLG: the cost for residential recycling services was
not to exceed $46,695 in year one and $51,022 in year two; and the cost of adding Green Waste
services was to not exceed $217,000 in year one and $219,000 in year two.
Green Waste Services
As part of this rate review, staff met with SLG to discuss their green waste proposal projection
of 7,500 tons of green waste to be collected annually. The result of these discussions are the costs
identified in Attachments B and C showing green waste costs for 1996 and 1997. For the last six
months of 1996, green waste services are estimated to cost $82,250, based on half a year of
operations and 2,000 tons of collected green waste. For the full year of 1997, green waste
services are estimated to cost$181,500, based on a full year of operations and an estimated 5,000
tons of collected green waste. By 1998, the goal is to collect 7,500 tons of green waste.
Green waste services will be offered in phases to all residential and commercial customers in July.
While the SLG's original proposal was to provide only residential green waste services, staff has
requested and SLG agreed to offer green waste services to commercial customers, as well. All
customers participating in the program will be provided a 90-gallon wastewheeler for green waste,
which will be collected weekly. Residential customers currently paying for standard refuse
service, a 90-gallon wastewheeler, will use that wastewheeler for green waste and will receive a
60-gallon wastewheeler for refuse collection.
%y Provisions in Rate Setting Methodology
■ Rates to be considered annually in context of three year rate setting cycle. Base year
applications are submitted by the service provider every three years, and interim year
applications are submitted each year between the base year to adjust for inflation and tipping
fee changes. Ongoing annual review promotes rate stability and revenue adequacy.
■ Interim year rate adjustments to be based on a weighted average change in controllable
and pass through costs. Inflation is derived from the most recent historical change in the
national consumer price index and is applied only to the percentage of total costs that are
defined as "controllable", a term including allowable costs and profit. Pass through costs are
adjusted to actual projected expenses and are not adjusted by inflation.
Council Agenda Report - Integrated Solid Waste Rate Review
Page 4
■ Profit to be limited to allowable costs. Profit is based on an operating ratio of 92 percent.
■ Profit not allowed on pass through or any disallowed costs. Tipping fees are pass through
costs. Income taxes, charitable and political contributions, entertainment and profit-sharing
payments not related to an IRS-approved pension program are examples of non-allowable
costs and cannot be included in the revenue requirement.
■ Rates to provide adequate revenues to fully meet cost of service. Rates must be set to be
fair to City residents while providing adequate revenue to the service provider to fully meet
reasonable costs of service.
■ Rate structure to be understandable and support diversion objectives. The rate structure
must be understandable and consistent with solid waste reduction and reycling objectives.
■ Officer salaries to be capped. Corporate overhead is capped at $120,000 (in 1994 dollars).
Key Assumptions -Rate Applications
1996 Application
■ Refuse Landfill Tipping Cost Projections
Rates $24.55 per ton
Tonnages 35,200 tons
■ Cost of Living 3.1% (April 1994 - April 1995)
■ Green Waste Services
Operating Expenses $529250
Tonnages 2,000 tons
Processing Fee $15.00 per ton
1997 Application
■ Refuse Landfill Tipping Cost Projections
Rates $24.55 per ton
Tonnages 32,200 tons (projected tons to landfill reduced due to
Green Waste program)
■ Cost of Living 2.8% (March 1995 - March 1996)
■ Green Waste Services
Operating Expenses $1069500
Tonnages 5,000 tons
Processing Fee $15.00 per ton
.S�
Council Agenda Report - Integrated Solid Waste Rate Review
Page 5
FISCAL E%1 PACT
If the proposed rates are approved, standard residential service customers will pay an additional
65 cents in July and additional 55 cents in January. Orange bag customers will pay an additional
30 cents in July, and an additional 30 cents in January, assuming one orange bag per week.
Premium service customers will pay an additional 85 cents in July and an additional 75 cents in
January.
CONCLUSION
The recommended increases follow an eighteen month period of no increases to the solid waste
rites. It will allow City residential and commercial customers to receive green waste services at
a cost little more than the inflation index. The increased costs related to green waste services are
largely offset by the reduction in refuse service costs. A ton of refuse costs $24.55 to landfill,
while a ton of green waste costs$15.00 to process and use, so each ton diverted from the landfill
saves $9.55.
In summary, the recommended rate increases follow the guidelines and policies of the adopted
Integrated Solid Waste Rate Setting Manual adopted by Council. These rates pay for cost of
living increases and green waste services, and reflect diversion of refuse tonnages from the
landfill. A recommendation for a January 1997 rate increase is included with this report as it
would be the normal time frame to be considering the 1997 rate application. However, if there
are any significant changes to the assumptions in the 1997 rate application, staff will return in late
1996 to modify the recommended rate increase for 1997.
ATTACHMENT Resolution
EXHIBITS:
A. July 1, 1996 Integrated Solid Waste Activities Rate Structure
B. January 1, 1997 Integrated Solid Waste Activities Rate Structure
C. 1996 SLG interim year rate application, including green waste financial information
D. 1997 SLG interim year rate application, including green waste financial information
W\1996-97\967swraLcar
RESOLUTION NO. (1996 SERIES)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING INTEGRATED 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
WFIDREAS, the City Council approved the deferral of the 1996 solid waste rate setting process pending
the outcome of the competitive process for City recycling and green waste services on October 3, 1995;
WIFREAS, the City Council authorized reimbursement to San Luis Garbage Company for revenue loss
due to the delay in the approved 1996 interim year rate review; and
WHEREAS, the City Council approved award of the recycling and green waste services contracts to San
Luis Garbage Company on January 16, 1996.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby
declares:
SECTION 1. Resolution No. 8372 (1994 series) is hereby rescinded on the effective date of this
resolution.
SECTION 2. The rates set forth in Exhibit A shall be effective July 1, 1996; and the rates set forth in
Exhibit B shall be effective January 1, 1997.
On motion of , seconded by and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted on this day of , 1996.
ATTEST: Mayor Allen Settle
Acting City Clerk,Kim Condon
APPROVED AS TO FORM:
/7%oey KVorgensen
�:7
Exhibit A
CITY OF SAN LUIS OBISPO
RATE SCHEDULE FOR INTEGRATED SOLID WASTE ACTIVITIES
July 1, 1996
MULTI-UNIT RESIDENTIAL DUMPSTER CONTAINERS (PER MONTH)
size of COLLECTIONS PER WEEK
container
(cubic yards) 1 2 3 4 5 6 7
1 $61.00 $89.00 $108.00 $148.00 $186.00 $208.00 $267.00
1.5 $70.00 $10200 $128.00 $168.00 $201.00 $218.00 $308.00
2 $81.00 $114.00 $148.00 $186.00 $216.00 $231.00 $351.00
3 $99.00 $140.00 $192.00 $246.00 $321.00 $346.00 $466.00
4 $118.00 $179.00 $253.00 $342.00 $428.00 $463.00 $577.00
6 $16200 $247.00 $346.00 $512.00 $590.00 $65200 $769.00
8 $208.00 $306.00 $463.00 $683.00 $852.00 $923.00 $1,041.00
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 $13.00 $2200 $32.00 $36.00 $38.00 $4200 $47.00
2 $16.00 $32.00 $4200 $46.00 $49.00 $55.00 $63.00
3 $21.00 $38.00 $52.00 $56.00 $60.00 $63.00 $74.00
4 $24.00 $44.00 $61.00 $65.00 $71.00 $77.00 $90.00
5 $30.00 $49.00 $69.00 $76.00 $84.00 $90.00 $108.00
6 $33.00 $56.00 $77.00 $86.00 $96.00 $106.00 $123.00
7 $37.00 $63.00 $85.00 $98.00 $110.00 $118.00 $140.00
8 $41.00 $69.00 $94.00 $108.00 $121.00 $135.00 $156.00
9 $45.00 $74.00 $10200 $116.00 $13200 $147.00 $175.00
10 $48.00 $81.00 $111.00 $129.00 $146.00 $16200 $190.0.0
Ma)dmum volume and weight per garbage can:35 gallons and 80 pounds
Additional charge per can per collection:$4.15
Rate Schedule for Integrated Solid Waste Activities-7/1/96
Page 2
COMMERCIAL WASTE WHEELER CONTAINERS (PER MONTH)
number COLLECTIONS PER WEEK
Of
containers 1 2 3 4 5 6 7
1 $22.00 $32.00 $38.00 $52.00 $64.00 $72.00 $94.00
2 $42.00 $62.00 $74.00 $103.00 $129.00 $144.00 $186.00
3 $48.00 $70.00 $89.00 $115.00 $140.00 $153.00 $214.00
4 $56.00 $79.00 $103.00 $129.00 $150.00 $161.00 $243.00
5 $63.00 $87.00 $117.00 $150.00 $187.00 $201.00 $283.00
6 $69.00 $98.00 $135.00 $171.00 $222.00 $241.00 $322.00
7 $76.00 $110.00 $154.00 $206.00 $260.00 $28200 $361.00
8 $84.00 $123.00 $176.00 $237.00 $297.00 $321.00 $400.00
9 $90.00 $135.00 $191.00 $267.00 $325.00 $353.00 $481.00
10 $98.00 $147.00 $208.00 $297.00 $354.00 $385.00 $560.00
11 $106.00 $160.00 $223.00 $326.00 $381.00 $418.00 $640.00
12 1 $113.00 $171.00 $241.00 $355.00 $410.00 $45200 $72200
In eddrfion to the collection rates stated above for waste wheeler containers,there shall be charged a
monthly rented tee for each container.
COMMERCIAL DUMPSTER CONTAINERS (PER MONTH)
sae of COLLECTIONS PER WEEK
container
(cubic yards) 1 2 1 3 1 4 5 6 7
1 $45.00 $68.00 $81.00 $111.00 $140.00 $156.00 $201.00
1.5 $53.00 $77.00 $96.00 $124.00 $152.00 $164.00 $231.00
2 $61.00 $85.00 $111.00 $139.00 $16200 $175.00 $26200
3 $74.00 $106.00 $146.00 $186.00 $241.00 $260.00 $347.00
4 $90.00 $135.00 $190.00 $257.00 $321.00 $346.00 $434.00
6 $122.00 $186.00 $260.00 $364.00 $443.00 $489.00 $577.00
B 1 $156.00 $230.00 $346.00 $51200 $640.00 $69200 $781.00
The rates stated above for dumpster containers shall include the monthly container rental fee.
l- 9
Rate Schedule for Integrated Solid Waste Activities-7/1/96
Page 3
UNSCHEDULED EXTRA COLLECTIONS FOR
COMMERCIAL CUSTOMERS AND
MULTI-UNIT RESIDENTIAL DUMPSTER CUSTOMERS
$15.50 1 cubic yard(minimum charge)
$20.00 2 cubic yards
$29.00 3 cubic yards
$38.50 4 cubic yards
SINGLE FAMILY and MULTI-UNIT RESIDENTIAL
VOLUME-BASED RATES
ECONOMY RATE
$230/mordh for collection service
$1.15 per specie 13S gallon bag distributed by Sen Luis Garbage Company
(Payable when bags are issued)
STANDARD RATE
$1520 per month for one wastewheeler container collected once each week
PREMIUM RATE
$20.70 per month for up to one cubic yard(six standard garbage cans)collected once each week
Maximum volume and weight per garbage can:35 gallons and 80 pounds
SERVICE AWAY FROM THE STREET CURB
$520 additional per month per can or container
EXTRA COLLECTIONS ON REGULAR COLLECTION DAY WITH GARBAGE TRUCK
$210 per standard garbage can or equivalent volume
(Not available for economy service customers)
LATE MAKEUP COLLECTIONS WITH GARBAGE TRUCK(phone call required)
$520 per trip plus$210 per czars garbage can or equivalent volume
(Not available for economy service customers)
I-/d
Rate Schedule for Integrated Solid Waste Activities-711196
Page 4
EXTRA COLLECTIONS WITH PICKUP OR FLATBED TRUCK(phone call required)
$11.50 per trip plus:
$210 per garbage can or equivalent volume(amounts over six cans by quotation)
$3.00 per white good article(once a month)
$3.00 per piece of furniture
$1.60 per mattress or bo:spring
(Economy service customers must pay in advance.)
Exhibit B
CITY OF SAN LUIS OBISPO
RATE SCHEDULE FOR INTEGRATED SOLID WASTE ACTIVITIES
January 1, 1997
MULTI-UNIT RESIDENTIAL DUMPSTER CONTAINERS (PER MONTH)
size of COLLECTIONS PER WEEK
container
(cubic yards) 1 2 3 4 5 6 7
1 $64.00 $93.00 $112.00 $154.00 $193.00 $216.00 $277.00
1.5 $73.00 $106.00 $133.00 $174.00 $209.00 $226.00 $319.00
2 $64.00 $119.00 $154.00 $193.00 $224.00 $240.00 $364.00
3 $103.00 $145.00 $199.00 $255.00 $333.00 $359.00 $483.00
4 $123.00 $186.00 $262.00 $355.00 $444.00 $480.00 $598.00
6 $168.00 $256.00 $359.00 $531.00 $611.00 $675.00 $797.00
8 1 $216.00 $317.00 $480.00 $708.00 $88200 $956.00 $1,078.00
The rates stated above for dumpster containers shall include the monthly container rental fee.
COMMERCIAL GARBAGE CANS (PER MONTH)
number COLLECTIONS PER WEEK
Of
caro 1 2 3 4 5 6 7
1 $14.00 $23.00 $34.00 $36.00 $40.00 $44.00 $49.00
2 $17.00 $34.00 $44.00 $48.00 $51.00 $57.00 $66.00
3 $22.00 $40.00 $54.00 $58.00 $63.00 $66.00 $77.00
4 $25.00 $46.00 $64.00 $68.00 $74.00 $80.00 $94.00
5 $3200 $51.00 $72.00 $79.00 $87.00 $94.00 $112.00
6 $35.00 $58.00 $80.00 $90.00 $100.00 $110.00 $128.00
7 $39.00 $66.00 $88.00 $10200 $114.00 $123.00 $145.00
8 $43.00 $72.00 $98.00 $112.00 $126.00 $140.00 $162.00
9 $47.00 $77.00 $106.00 $121.00 $137.00 $153.00 $182.00
10 $50.00 $84.00 $115.00 $13.4.00 $15200 $168.00 $197.00
Maximum volume and weight per garbage can:35 gallons and 60 pounds
Adclitional charge per can per collection:$4.30
1-Iz
Rate Schedule for Integrated Solid Waste Activities-1/1/97
Page 2
COMMERCIAL WASTE WHEELER CONTAINERS (PER MONTH)
number COLLECTIONS PER WEEK
Of
containers 1 2 3 4 5 6 7
1 $23.00 $34.00 $40.00 $54.00 $67.00 $75.00 $98.00
2 $44.00 $65.00 $77.00 $107.00 $134.00 $150.00 $193.00
3 $50.00 $73.00 $93.00 $120.00 $145.00 $159.00 $22200
4 $58.00 $82.00 $107.00 $134.00 $156.00 $167.00 $252.00
5 $66.00 $91.00 $122.00 $156.00 $194.00 $209.00 $293.00
6 $72.00 $10200 $140.00 $178.00 $230.00 $250.00 $334.00
7 $79.00 $114.00 $160.00 $214.00 $270.00 $292,00 $374.00
8 $67.00 $128.00 $183.00 $246.00 $308.00 $333.00 $415.00
9 $94.00 $140.00 $198.00 $277.00 $337.00 $366.00 $498.00
10 $102.00 $153.00 $216.00 $308.00 $367.00 $399.00 $580.00
11 $110.00 $166.00 $231.00 $338.00 $395.00 $433.00 $663.00
12 $117.00 $178.00 $250.00 $368.00 $425.00 $468.00 $748.00
In addition to the collection rates stated above for waste wheeler containers,there shall be charged a
monthly retial fee for each container.
COMMERCIAL DUMPSTER CONTAINERS (PER MONTH)
sae of COLLECTIONS PER WEEK
container
(cubic Yards) 1 2 3 4 5 6 7
1 $47.00 $71.00 $84.00 $115.00 $145.00 $16200 $209.00
1.5 $55.00 $80.00 $100.00 $129.00 $158.00 $170.00 $240.00
2 $64.00 $88.00 $115.00 $144.00 $168.00 $18200 $272.00
3 $77.00 $110.00 $15200 $193.00 $250.00 $270.00 $360.00
4 $94.00 $140.00 $197.00 $267.00 $333.00 $359.00 $450.00
6 $127.00 $193.00 $270.00 $398.00 $459.00 $507.00 $598.00
8 1 $16200 $239.00 $359.00 $531.00 $663.00 $717.00 $809.00
The rates stated above for dumpster containers shall include the monthly container rental fee.
Rate Schedule for Integrated Solid Waste Activities-1/1/97
Page 3
UNSCHEDULED EXTRA COLLECTIONS FOR
COMMERCIAL CUSTOMERS AND
MULTI-UNIT RESIDENTIAL DUMPSTER CUSTOMERS
$16.00 1 cubic yard(minimum charge)
$21.00 2 cubic yards
$30.00 3 cubic yards
$40.00 4 cubic yards
SINGLE FAMILY and MULTI-UNIT RESIDENTIAL
VOLUME-BASED RATES
ECONOMY RATE
$240/month for collection service
$120 per speck 33-gallon bag distributed by San Luis Garbage Company
(Payable when bags are issued)
STANDARD RATE
$15.75 per month for one wastewheeler container collected once each week
PREMIUM RATE
$21.45 per month for up to one cubic yard(sic standard garbage cans)collected once each week
Maximum volume and weight per garbage can:35 gallons and 80 pounds
SERVICE AWAY FROM THE STREET CURB
$5.40 additional per month per can or container
EXTRA COLLECTIONS ON REGULAR COLLECTION DAY WITH GARBAGE TRUCK
$220 per standard garbage can or equivalent volume
(Not available for economy service customers)
LATE MAKEUP COLLECTIONS WITH GARBAGE TRUCK (phone call required)
$5.40 per tip plus$220 per extra garbage can or equivalent volume
(Not available for economy service customers)
Rate Schedule for Integrated Solid Waste Activities-1/1/97
Page 4
EXTRA COLLECTIONS WITH PICKUP OR FLATBED TRUCK (phone call required)
$1200 per trip plus:
$220 per garbage can or equivalent volume(amounts over sbc cans by quotation)
$3.00 per white good article(once a month)
$3.00 per piece of furniture
$1.70 per mattress or boxspring
(Economy service customers must pay in advance.)
Exhibit C
Oryof Sm Luis Ohspo
July 1 , 1996
Interim Year Rate Adjustment Application
Summary
...........
. .....
;��qdesj_ tcd IAcr'ease;:.:.
::
............ ....... ......
1. Rate Increase Requested(including green waste) 420/
Rate;Sso
6he .........
ule
.............
Current Increased Adjustment New
Rate Schedule Rate Rate (a) Rate
Single Family Residential
2. Economy Service (collection) $2.20 $2.29 $0.01 $2301
Economy Service (orange bags) $1.10 $1.15 $0.0-6 $1.15
0 A
3. Standard Service $14.55 $15.16 $0.04 $15.20
4. Premium Service $19.85 $20.68 $0.02] $20.70
(a)Calculated rates are rounded up to the nearest$0.05.
5. Multiunit Residential and Non—residential Rate increases of 1�42% l
will be applied to all rates in each structure
with each rate rounded up to the nearest SLM
r
C ca I n
e'tifi t
To the besL of my knowledge,the data and information in this application is complete,accurate,and consistent with the instructions
provided by the City of San Luis Obispo.
Name: Title: '2
Signature: Date:
Fiscal Year. 111196 — 12131196 Pg. 1 of 2
City of San rx&Obispo July 1996
Interim Year Rate Adjustment Application
Financial Information
Section I Base Year Costs
Base Year Controllable Costs
6. Total Allowable Costs $3,599,223
7. Plus Allowable Operating Profit $312,976
8. Plus Lease Payments to Affiliated Companies
$0
9. Equals Total Controllable costs $3 912199 792%
Base Year Pass Through Costs
10. Tipping Fees $927,314
11. Plus AB 939 and Regulatory Fees I $97,607
12. Equals Total Pass Through Costs $1024 921
13. Base Year Revenue Requirements (less Franchise Fee) $4 937120 100%
Section I)C=Changes m Costs
Change in Controllable Cost
14. Historical Percentage Change in Consumer Price Index(Apr 94—Apr 95) 3.1%
Change in Pass Through Cost
15. Prior Year Tipping Fees— 1995 $927,314
16. Plus 1993 and 1994 costs $97,607
17. Equals Total Prior Year Pass Through Costs $1024 921
18 Projected Interim Year Tipping Fecs(35,216 x 2455) F $864,553
First six months of 1996 $23,318
19. 1993 and 1994 costs $97,607
20. Equals Total Projected Interim Year Pass Through costs $985 478
Projected Percentage Change in Pass Through Costs
Section III Calcalatlon of Percent Change w Ratcs
Weighted Change in Controllable Costs
21. Controllable Costs as a Percent of Base Year Revenue Requirements 792%
22. Mul lied byPercent change in CPI 3.1%
23. Equals Weighted Percent Change in Controllable Costs 25%
Weighted Change in Pass Through Costs
21. Pass Through Costs as a Percent of Base Yr Revenue Requirements
22. Multi" lied b Percent Chane in Pass Through Costs
23. Equals Weighted Percent Change in Pass Through Costs
Total Change
21. Total Percent Change in Cost =94-01%
22. Divided by Adjustment for Franchise Fee 1-6.0 ercent
23. Equals Percent Change in Existing Rates 1.8%
Fiscal Year. 1/1/96 — 12/31/96 Page 2 of 2
I-/7
69y0rsmr&0ma 1996 and 1997
GREEN WASTE CONTRACT
Section I Contract Assumptions
Contract Cost Assumptions 1996 1997
1. Operating Costs 104,500 106,500
2. Plus Tipping fees 7,500 tons @$15/ton 112,500 112,500
3. Equals Total Green Waste Program Costs 217,000 219.000
Revised Cost Assumptions (see Notes below)
4. Operating Costs A. 52,2501 106,500
5. Plus Tipping fees @$15/ton B. 30,000 75,000
6. Equals Total Green Waste Program Costs— Year 82,250 181500
Section II Green Waste NcE Costs
7. Green Waste Annual Cost(line 6) 82,250 181,500
8. Offset less prior year costs already in model 0 82,250
9. Net Shortfall 82,250 99 0
Section II CFranc
sc"R
Ievenue
10. City Franchise Revenue — 1995 3,587,37-411 3,587,174
11. Adjustment to 1997 only(approved rate percent from 1996 n/a 424%
12 Equals Revenue base without calculated rate increase 3,587,3E4]
3739 479
Section III - Calculation ofPcrcent:,Change nRates
13. Net Shortfall (from line 9) 1 82.2-570 99250
14. Divided by Revenue Base without rate increase line 12 -3,-587,3-7-41F--3-,7-.19-,4-779
15. Equals Additional revenue percentage 2.290/
16. Additional revenue percentage (line 15) 2.29%
17. Divided by Franchise fee adjustment factor 1 — 6.0percent)- 94% 94%
18. Equals Percent Change in Rates—Residential/Non—residential 2.44% 2.82%
Notes:
A. 1996 Green waste costs are based on six months only;2,000 tons collected.
B. 1997 Green Waste Costs are based on 12 months;5,000 tons collected.
Exhibit D
QzycfSao L&&0UVo
January 1, 1997
Interim Year Rate Adjustment Application
Summary
. .........
..Requested.........:-..
Inertsase
1. Rate Increase Requested(including green waste)
Rate...........
..... .....
.............. .......
Current Increased Adjustment New
Rate Schedule Rate Rate (a) Rate
Single Family Residential
2. Economy Service(collection) $2.30 $2.381 $0.02 $2.40
Economy Service(orange bags) $1.15 $1.19 $0.01 $1.20
3. Standard Service $1520 $15.73 $0.02 $15.75
4. Premium Service $20.70 $21.42 $0.03 $21.45
(a)Calculated rates are rounded up to the nearest$0.05.
5. Multiunit Residential and Non—residential Rate increases of
will be applied to all rates in each structure
With each rate rounded up to the nearest 51.00.
. . ..... ...
...........
.... . .. rt t, l...
ion
.......... ... ... .. .... ...
To the best of my knowledge,the data and information in this application is complete,accurate,and consistent with the instructions
provided by the City of San Luis Obispo.
r
"P ;' Title: 6eni-)-40
Name: 41PI-91
Signature:ign re: Date:
Fiscal Year: 111197 — 12131197 Pg. 1 of 2
atyofSwLA&0;spo January 1997
Interim Year Rate Adjustment Application
Financial Information
Sect<oo-T Base Year Costs
Base Year Controllable Costs
6. Total Allowable Costs $3,599,223
7. Plus Allowable Operating Profit $312,976
8. Plus Lease Payments to Affiliated Companies $0
9. Equals Total Controllable costs $3 912199 792%
Base Year Pass Through Costs
10. Tipping Fees $927„314
11. Plus AB 939 and Regulatory Fees 1 $97,60711
12. Equals Total Pass Through Costs $1024 921 20 8%
13. Base Year Revenue Requirements (less Franchise Fce) $4 937120 100%
Secilon IT :Changes'�n Cosis
Change in Controllable Cost
14. Historical Percentage Change in Consumer Price Index(Mar 95 — Mar 96) 2.8%
Change in Pass Through Cost
15. Prior Year Tipping Fees — 1996 $864,553
16. Plus 1993 and 1994 costs $97,607
17. Equals Total Prior Year Pass Through Cosis $962160
18 Projected Interim Year Tipping Fees(32,216 x 2455) $790,903
19. 1993 and 1994 costs $97 607
20. Equals Total Projected Interim Year Pass Through costs $888 10
Projected Percentage Change in Pass Through Costs
Secpoa III=Calculation of:Pcrcent Changein Rates
Weighted Change in Controllable Costs
21. Controllable Costs as a Percent of Base Year Revenue Requirements 792%
22. Multi lied b Percent change in CPI Zggo
23. Equals Weighted Percent Change in Controllable Costs 22%
Weighted Change in Pass Through Costs
21. Pass Through Costs as a Percent of Base Yr Revenue Requirements 20$0/c
22. Mult' lied byPercent Chane in Pass Through Costs —7.65%
23. Equals Weighted Percent Change in Pass Through Costs —1.6%
Total Change
21. Total Percent Change in Cost
22. Divided h Adjustment for Franchise Fee 1-6.0percent) Eq=L—m
23. Equals Percent change in Existing Rates
Fiscal Year. 1/1/97 — 12/31/97 Page 2 of 2
/2D
my of5anItd%ObL%;o 1996 and 1997
GREEN WASTE CONTRACT
SccUonI ::Contract Assumptions
Contract Cost Assumptions 1996 1997
1. Operating Costs 104,500 106,500
2. Plus Tipping fees(7,500 tons @$15/ton 112,500 112,500
3. Equals Total Green Waste Program Costs 217,000 219,0001
Revised Cost Assumptions (sec Notes below)
4. Operating Costs A. 52,250 106,500
5. Plus Tipping fees @$15/ton B. 30,000 75,000
6. Equals Total Green Waste Program Costs- Year 82,250 18L500
Section Ili Green Waste Net Costs::
7. Green Waste Annual Cost(line 6) 82,250 181,500
8. Offset less riot year costs alreadyin model 0 8�0
9. Net Shortfall 82,250 99 0
11
Section III :C,ty Franc}use Revenue`
10. City Franchise Revenue - 1995 3,587-3-74�1 3,587,174
11. Adjustment to 1997 only(approved rate percent from 1996 n/a 424%
12 Equals Revenue base without calculated rate increase 3 87 374 3 739 479
N.
Section IQ Calculation of Percent Change in Rates
13. Net Shortfall (from line 9) 82 0 99 0
14. Divided by Revenue Base without rate increase line 12 3,587,374 3,739,479
15. Equals Additional revenue percentage 2.29% 2.65%
16. Additional revenue percentage (line 15) 229% 2b5%
17. Divided by Franchise fee adjustment factor 1 - 6.0percent) 94% 94%
18. Equals Percent Change in Rates-Residential/Non-residential 2.44% 2.82%
Notes:
A. 1996 Green waste costs are based on six months only;2,000 tons collected.
B. 1997 Green Waste Costs are based on 12 months;5,000 tons collected.
/—a2l