HomeMy WebLinkAbout11/09/2000, 4 - SAN LUIS GARBAGE COMPANY BASE YEAR SOLID WASTE RATE ADJUSTMENT APPLICATION. council MN Dee
Nov. 9, 2000
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C I T Y O F SAN LU I S O B I S P O
FROM: John Moss, Utilities Directof'
Prepared By: Ron Munds, Utilities Conservation Coordinator
SUBJECT: SAN LUIS GARBAGE COMPANY BASE YEAR SOLID WASTE
RATE ADJUSTMENT APPLICATION.
CAO RECOMMENDATION
1. Approve modifications to the current solid waste and recycling collection system to:
• Eliminate the orange bin recycling service and establish a commingled
recycling waste wheeler service; and
• Eliminate the Orange Bag Program for refuse collection and initiate a new
19 gallon waste wheeler service; and
2. Adopt a resolution increasing solid waste rates by 7.3%to become effective on January 1,
2001.
DISCUSSION
Background
According to the Rate Setting Process and Methodology for Integrated Solid Waste Rates
(adopted by Council in 1994), the base year rate setting process requires the franchise refuse
hauler to submit to the City, a Base Year Rate Adjustment Application every three years. In the
application, the hauler completes a number of forms, provides supporting financial and
operational information, and includes results of a survey of rates in other cities. Information for
five years is required and is intended to show the relationship between the most recently
completed years (years 1 and 2), the current year (year 3) and projections for the new base year
(year 4) and year after (year 5). The relationship between these five columns for any given line
item should be relatively consistent.
At the May 2, 2000 City Council meeting, staff presented to Council and Council provided
conceptual approval of recommendations to modify the existing solid waste and recycling
collection systems (Attachment 5). The recommendations included the elimination of the
Orange Bag service level and replacing it with a 19 gallon waste wheeler service level; and
instituting a commingled recycling waste wheeler system and eliminating the orange recycling
bins currently being used. The proposed changes were recommended to accomplish the solid
waste rate structure objectives. The objectives are:
• To promote source reduction,maximum diversion and recycling;
• To provide equity and fairness within classes of customers;
• Be environmentally sound; and
• Be easy to understand.
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Council Agenda Report—Solid Waste Rate Adjustment
Page 2
San Luis Garbage Company (SLG) has submitted two Base Year Solid Waste Rate Adjustment
Applications, one which calculates the rate increase with no changes in service (Attachment 1)
and one that includes the recommended modifications (Attachment 2). A solid waste rate review
team made up of the following individuals assessed the applications and the required audited
financial statement for consistency and accuracy:
Bill Statler, Finance Director
Carolyn Dominguez, Accounting Manager
John Moss, Utilities Director
Peter Cron, Utilities Conservation Technician
Ron Munds, Utilities Conservation Coordinator
Bill Worrell, Integrated Waste Management Authority Manager
Cindy Dummit, SLO County Auditor's Office
After a thorough evaluation of both rate applications, the review team determined that,
depending on the direction the Council decides to go in term of service levels, each application
will ensure SLG the necessary operating revenues, including profit, within the prescribed levels
set by the solid waste rate setting policies while providing a high level of service at a fair rate for
the City's solid waste customers.
Key Cost Factors in the Solid Waste Rate Application
In comparing the two rate applications, there are only minor differences in the a cost summary
information. The primary factor in the new services application, which accounts for the increase
above that which is needed with no change in service (6.2% vs. 7.3%), is the cost of the new
containers for the commingled recycling and 19 gallon waster wheeler services. Since staff is
recommending and Council has previously provided conceptual approval of the changes in
services, the following analysis of cost factors focuses on that rate submission reflecting those
changes.
There are four factors that are dictating the need for the proposed rate increase. The following is
a summary of those factors.
• Tipping Fees
The most significant factor is landfill costs. The County Board of Supervisor's approved a$5.00
per ton increase in tipping fees at Cold Canyon Landfill, effective September 1, 2000. This
accounts for approximately 3.4% of the overall rate increase being proposed. Tipping fees are a
pass through cost therefore are recovered through the rate base.
• Inflation and Operating Expenses
The Consumer Price Index from August 1999 to August 2000 was 3.5% for Los Angeles,
Riverside, Orange Counties, much of which was attributed to higher fuel costs. The reason for
using this CPI figure is that this geographic area most influences SLG's costs to provide service.
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Council Agenda Report—Solid Waste Rate Adjustment
Page 3
Increases in operating expenses in the SLG rate application account for about 1.7% of the overall
increase. Fuel costs account for a significant portion of 1.7%.
• Equipment Replacement
The rate application identifies the addition of two automated trucks to SLG fleet. This accounts
for 1.1% of the overall increase.
• Waste Wheeler Purchase
Changing to the new services (both recycling and 19 gallon waste wheeler) requires the purchase
of approximately 14,900 new waste wheelers. This accounts for about 1.1%of the proposed rate
increase.
Figure 1 summarizes the various factors that drive the need for the proposed rate increase.
RATE INCREASE WITH NEW PROGRAMS
AT 7.3%
NM PROGRAM
I -
es ,.
r TIPPING FMS
INFLAMON
1
3.4
.7
I `
I - '
I 1.1
NSN TRUCKS
Figure 1
Other Proposed Changes Reflected in the Rate Application
Office Paper Collection
With implementation of the commingled recycling waste wheeler, SLG proposes to eliminate the
"in building"white office paper program and the $0.85 cost per bag charge. The reason being
that under the new system,commercial customers can place all their recyclable material in one
container thus eliminating the need to separate the paper. SLG recognizes that there will be
certain large office complexes which will want to retain the "in building"office paper collection
4-3
Council Agenda Report—Solid Waste Rate Adjustment
Page 4
service. SLG proposes to charge a $40.00 hourly rate for the service instead of the current $0.85
per bag rate. The hourly charge will cover the actual cost of providing the "in building" service.
Cardboard Collection
Currently, commercial customers can have up to 1 yard of cardboard collected once a week at no
extra charge. SLG proposes to increase the volume of cardboard collected once a week to 2
yards. This is being proposed in an effort to simplify billing procedures and increase
participation from small cardboard generators while maintaining the efficiencies of the program.
Extras
An"extra" is additional refuse that is placed out for collection above the level of service a
customer subscribes to. There are two types of extras, the most common being a bag or
container placed next to the waste wheeler. The second is when a customer overfills their waste
wheeler which causes problems for the drivers when attempting to empty the container. Both
scenarios lead to inefficiencies in the collection system which ultimately cost more to all
customers.
The occasional extra is to be expected but the current pricing of the pickup does not provide an
incentive to the customer to subscribe to the appropriate level of service. SLG and staff proposes
to increase the cost for collecting extras from the current$3.00 per 32 gallon equivalent to $4.50.
Under this pricing structure, if a customer places two or more extras out per month or continually
overfills their waste wheeler, it would be more convenient and economical to move to the next
level of service.
Orange Bag Buyback Program
If Council approves the recommended change to eliminate the Orange Bag Program, SLG and
City staff will develop a public information program, directed at orange bag customers, to
buyback any remaining orange bags that the customers may have. SLG's accounting system can
determine what the customer paid for their bags and apply a credit to their account.
Survey of Solid Waste Services and Rates—Other Cities
As part of the rate setting process, SLG is required to conduct and report the results of a survey
of residential and non-residential solid waste rates in communities similar in size and location to
the City of San Luis Obispo. The purpose of the survey is to benchmark rates proposed by SLG
against other cities to determine if the rates are reasonable. Attachment 4 is the results of the
survey and the survey forms submitted by SLG.
It is important to note that there are many variables that make up the solid waste rates in different
communities. The variables include franchise fees. AB 939 fees, tipping fees and levels of
service (i.e. curbside recycling, green waste collection, etc.). Because of the variability of
factors, it is difficult to compare rates from other jurisdictions on an"apples to apples"basis.
Taking this information into account, the survey indicates that the current rates charged by SLG
are in the mid-range of cost when compared to other local jurisdictions. When compared to
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Council Agenda Report—Solid Waste Rate Adjustment
Page 5
comparable agencies located in other areas of the state, SLG's rates are significantly less. Based
on the overall comparison,the rates charged by SLG seem to be reasonable.
FISCAL IMPACT
The proposed rates are as follows:
Residential Solid Waste Services/Rates
Service Level Current Proposed
Service Rate With Ne"! Services
Orange Bag $2.64/month N/A
(Cost per bag) plus$1.98/bag
Mini-can N/A $5.84/month
(19 gallon)
Economy $8.70/month $9.34/month
(32 gallon waste wheeler)
Standard $17.40/month $18.67/month
(64 gallon waste wheeler)
Premium $26.10/month $28.01/month
(96 gallon waste wheeler)
Commercial Solid Waste Services
As identified in Exhibit A to Attachment 1.
ALTERNATIVES
Adopt the 63% rate increase with no changes in services. This alternative would not
accomplish the service level enhancements previously approved by the Council. However, this
alternative would reduce the required rate increase by 1.1%. Because this alternative would not
achieve the rate setting objectives, it is not recommended.
Service Level C111-1-clit Proposed
Service Rate Without New Sen ices
Orange Bag $2.64/month $2.80/month
(Cost per bag) plus$1.98/bag plus$2.10/bag
Economy $8.70/month $9.24/month
(32 gallon waste wheeler)
Standard $17.40/month $18.48/month
(64 gallon waste wheeler)
Premium $26.10/month $27.72/month
(96 gallon waste wheeler)
Council Agenda Report—.—Solid'Waste Rate Adjustment
Page 6
ATTACHMENTS
1. Resolution
Exhibit A : Rate Schedule for IntegratedSolid Waste.Activities
2.2001 Rate Application — Without new services
3. 2001 Rate Applicatiori—New Services
4: Survey of Other Cities -'Solid Waste Rate
5. May 2.,2000 Staff Report
Attachment 1
RESOLUTION NO. (2000 SERIES)
A RESOLUTION OF THE COUNCIL
OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING INTEGRATED SOLID WASTE RATES
WHEREAS, on June 21, 1994, 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; and
WHEREAS, a review of San Luis Garbage Company's 2001 base year solid waste rate
application has been completed in accordance with the adopted solid waste rate setting policies.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Resolution No. 9002 (1999 series) is hereby rescinded on midnight,
December 31, 2000.
SECTION 2. The rates set forth in Exhibit A shall be effective January 1, 2001.
On motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted on this day of , 2000.
ATTEST: Mayor Allen Settle
Lee Price, City Clerk
APPROVED AS TO FORM:
Y
City Attorney Jeffrey Jorgensen
4-5
EXHIBIT A-1
CITY OF SAN LUIS OBISPO - (ATTACH. I)
7.30% AVERAGE ACROSS THE BOARD INCREASE
FOR INTEGRATED SOLID WASTE ACTIVITIES
EFFECTIVE 1-1-2001
MULTI-UNIT RESIDENTIAL DUMPSTER CONTAINERS (PER MONTH)
Size of COLLECTIONS PER WEEK
container
(cubic yards) 1 2 3 4 5 6 7
1 $67.381 $98.121 $128.85 $159.58 $190.311 $221.04 $251.77
1.5 $78.02 $120.56 $163.12 $205.67 $248.231 $290.77 $333.33
2 $88.65 $141.841 $195.03 $248.22 $301.41 $354.58 $407.77
3 $109.92 $184.40 $258.86 $333.33 $407.79 $482.27 $556.74
4 $131.20 $228.13 $325.07 $422.00 $518.93 $615.88 $712.82
6 $173.73 $314.41 $455.081 $595.75 $736.43 $877.10 $1,017.78
The rates shown above include the monthly container rental fee and are the same for bins
and garwoods, when volume is identical. .
COMMERCIAL GARBAGE CANS(PER MONTH)
number COLLECTIONS PER WEEK
of
cans 1 2 3 4 5 6 7
1 $16.56 $26.00 $35.45 $44.91 $54.35 $63.80 $73.25
2 $21.28 $33.10 $44.93 $56.74 $68.56 $80.39 $92.20
3 $26.01 $40.21 $54.39 $68.59 $82.78 $96.97 $111.16
4 $30.74 $47.30 $63.84 $80.40 $96.95 $113.50 $130.05
5 $35.47 $54.38 $73.30 $92.20 $111.12 $130.03 $148.94
6 $40.21 $61.47 $82.75 $104.02 $125.28 $146.56 $167.83
7 $44.94 $68.58 $92.21 $115.86 $139.50 $163.14 $186.79
8 $49.67 $75.68 $101.69 $127.70 $153.72 $179.73 $205.74
9 1 $54.39 $82.771 $111.14 $139.51 $167.88 $196.25 $224.63
Maximum volume and weight per garbage can:35 gallons and 80 pounds
Additional charge per can per collection: $5.08
Optional Waste Wheeler rental if requested $2.31 1 Per month for 32 gallon&64 gallon size
Proposed Rate Schedule for Integrated Solid Waste Services effective 1-1-2001
4-6
EXHIBIT A-2
(ATTACH. I)
CITY OF SAN LUIS OBISPO
COMMERCIAL WASTE WHEELER CONTAINERS (PER MONTH)
number COLLECTIONS PER WEEK
of
containers 1 2 3 4 5 6 7
1 $27.191$44.93 $62.66 $80.40 $98.14 $115.87 $133.61
2 $43.74 $69.73 $95.74 $121.74 $147.74 $173.74 $199.75
3 $60.29 $94.56 $128.85 $163.12 $197.40 $231.67 $265.95
4 $76.84119.39 $161.95 $204.49 $247.05 $289.60 $332.16
5 $93.39 $144.22 $195.05 $245.88 $296.711 $347.53 $398.36
6 $109.94 $169.05 $228.15 $287.25 $346.351 $405.47 $464.57
7 $126.50 $193.87 $261.25 $328.63 $396.01 $463.39 $530.77
8 $143.04 $218.70 $294.361 $370.01 $445.67 $521.32 $596.97
9 $159.60 $243.52 $327.441 $411.36 $495.28 $579.19 $663.11
In addition to the collection rates stated above for waste wheeler containers,there shall be charged a
monthly rental fee for each container. $2.31 Rental per waste wheeler per month
COMMERCIAL DUMPSTER CONTAINERS(PER MONTH)
Size of
container COLLECTIONS PER WEEK
:ubic yards) 1 2 3 4 5 6 7
1 $59.10 $82.75j$146.58
$106.39 $130.03 $153.66 $177.31 $200.95
1.5 $66.19 $96.92 $127.65 $158.39 $189.12 $219.85 $250.59
2 $73.29 $109.93 $183.23 $219.88 $256.52 $293.17
3 $87.46 $138.29 $169.12 $239.94 $290.77 $341.60 $392.43
4 $101.65 $167.84 $234.03 $300.231 $366.42 $432.61 $498.81
6 $130.00 $223.40 $316.79 $410.181 $503.57 $596.961 $690.36
8 $158.36 $278.95 $399.52 $520.101 $640.681 $761.261 $881.83
The rates shown above include the monthly container rental fee and are the same for bins
and garwoods, when volume is identical.
UNSCHEDULED EXTRA COLLECTIONS FOR
COMMERCIAL CUSTOMERS AND
MULTI-UNIT RESIDENTIAL DUMPSTER CUSTOMERS
$27.19 1 cubic yard (minimum charge)
$35.46 2 cubic yards
$43.74 3 cubic yards
$52.01 4 cubic yards
Proposed Rate Schedule for Integrated Solid Waste Services effective 1-1-2001
4-7
EXHIBIT A-3
(ATTACH. I)
CITY OF SAN LUIS OBISPO
RATE SCHEDULE
FOR COMMERCIAL RECYCLING ACTIVITIES
BASE CHARGE FOR COMMERCIAL RECYCLING
All commercial customers will pay$3.00 per month for commercial recycling services.This charge includes
all recycling services except collection of cardboard in excess of two yards once a week.This base charge
has already been added to the garbage rates.
CARDBOARD COLLECTION
COMMERCIAL DUMPSTER CONTAINERS (PER MONTH)
Size of
container COLLECTIONS PER WEEK
(cubic yards) 1 2 3 4 5 6 7
1 INCLUDED $20.691 $26.60 $32.51 $38.41 $44.331 $50.24
1.5 INCLUDED $24.231 $31.91 $39.59 $47.28 $54.961 $62.65
2 INCLUDED $27.48 $36.64 $45.81 $54.97 $64.131 $73.30
3 $21.87 $34.57 $47.28 $59.99 $72.70 $85.40 $98.10
4 $25.41 $41.97 $58.51 $75.06 $91.60 $108.16 $124.70
6 $32.50 $55.85 $79.20 $102.55 $125.90 $149.24 $172.59
8 1 $39.59 $69.73 $99.891 $130.031 $160.17 $190.32 $220.46
The rates shown above include the monthly container rental fee and are the same for bins
and garwoods, when volume is identical.
WHITE OFFICE PAPER COLLECTION
White office paper can be commingled with other recycling in your blue waste wheeler.
In office collection of whitelcolored paper is available at $40.00 per hour
POLYSTYRENE COLLECTION
Polystyrene is no longer collected for recycling. It should be thrown away as trash.
Proposed Rate Schedule for Integrated Solid Waste Services effective 1-1-2001
4-8
EXHIBIT A-4
CITY OF SAN LUIS OBISPO (ATTACH. I)
SINGLE FAMILY and MULTI-UNIT RESIDENTIAL(4 units or less)
VOLUME-BASED RATES
MINI-CAN SERVICE
$5.84 1per month for one 19 gallon wastewheeler container collected once each week
ECONOMY RATE
$9.34 per month for one 32 gallon wastewheeler container collected once each week
STANDARD RATE
$18.67 per month for one 64 gallon wastewheeler container collected once each week
PREMIUM RATE
$28:01 per month for one 96 gallon wastewheeler container collected once each week
PREMIUM PLUS RATE
$8.51 per month for additional 32 gallon wastewheeler container collected once each week
$17.02 per month for additional 64 gallon wastewheeler container collected once each week
$25.53 per month for additional 96 gallon wastewheeler container collected once each week
.ERVICE AWAY FROM THE STREET CURB
$6.37 1 additional per month per can or container
LATE MAKEUP COLLECTIONS WITH GARBAGE TRUCK(phone call required)
$9.46 1per trip plus charges identified above for any extra containers or equivalent volume
$4.50 additional charge per 33 gallon can or equivalent volume per collection
EXTRA COLLECTIONS WITH PICKUP OR FLATBED TRUCK hone call required)
$14.19 per trip plus:
$4.50 per garbage can or equivalent volume(amounts over six cans by quotation)
$3.54 per white good article (once a month)
$3.54 per piece of furniture
$3.54 per mattress or boxspring
(Orange bag service customers must pay in advance)
Proposed Rate Schedule for Integrated Solid Waste Services effective 1-1-2001
4-9
• San Luis Garbage,Co. - Attachment 2
Page 1 of 6
2001 Base Year Rate Adjustment Application
Summary
Requestedancrease
1. Rate Increase Requested6'2%
Rate'Schedule
Current Increased Adjustment New
Rate Schedule Rate Rate (a) Rate
Single Family Residential
2. Orange Bag Service(collection) $2.64 $2.80 $2.80
Orange Bag Service(sales) $1.98 $2.10 $2'10
3. Economy Service(I - can curb-waste wheeler) $8.70 $9.24 $9.24
4. Standard Service(2-can curb-waste wheeler) $17.40 $18.48 518.48
5. Premium Service(3 -can curb-waste wheeler) $26.10 $27.72 $27.72
(a)Calculated rates are rounded up to the nearest$0.01.
6. Multiunit Residential and Non-residential Rate increases of 6.za/a
will be applied to all rates in each structure
With each rate rounded to the nearest 50.01
To the best of my knowledge.the data and information in this application is complete.accurate,and consistent with the instructions
provided by the Rate Setting Manual.
Name: Tom M in Title: Controller
Signature: Date: 09/27/2000
Fiscal Year.• 1-1-2001 to 12-31-2001 Pg. 1 of 6
4-10
NO PROGRAM CHANGES
Sm Luis aabarc Co. Attachment 2
BASE YEAR RATE ADJUSTMENT APPLICATION Page2of8
Historical Current Pro ected
Financial Information Base Year
1998 1999 2000 2001 2002
(from Pg.4)
6. Direct Labor $2,142.267 $1,651,139 $1,788,726 $1,819,267 $1,837,460
7. Corporate Overhead $126,271 $131,548 $118,884 $144,666 $146,113
8. Office Salaries $655,138 $634,677 $487,066 $592,70211 $598,629
9. Other General and Admin Costs $1,650,974 $1,609,459 $1,261,708 $1,314,667 $1,342,275
10 Total Allowable Costs $4,574,650 $4 026 823 $3 676 384 $3 871,302 $3,924 477
_ Seetion:Il-AllowahleiOperatlng�Profit;' _ ,. ? -� .,,
11. Operating Ratio I 11F 105.1% 95.6%1 93.6% 93.0% 93.0%
12. Allowable Operating Profit ($220,1211 $186,67311 $251,398 $291 389 $295,391
Tipping Fees FP$29;4.542
0 $919,81411 $987,834 $1,186,985 $1,222,595
Franchise Fees $320,749 $325,163 $325,634 $332,147
15. AB939Fees 0 $92,800 $95,584 $98,452 $101,405
1G. Lease Pmts to Affiliated Com ani $0 s0i $0 $0 $0
17. Total Pass Through Costs $1,209,282 $1,333,3 63jL,4_08_,5_8_1J1 $1.611.071 %1,656,146
18. Revenue Requirement $5 563 81 I $5,546,85911 $5 336 363 $5 773,762 $5.876 014
19. Total Revenue Offsets $5 563 81 I $5 546 859 $5,336,363 $5,483,723j $5 595 452
(from Page 3)
.. _ Seedoup r4etshortfalt(Surplur).. . � " �-; .
20. Net Shortfall(Surplus) $290,038
21. Total Residential and Non-residential Revenue without increase
in Base Year(pg.3,lines 32+40) $5,027,968
22. Percent Change in Residential and Non-residential Revenue Requirement11 —8/o
11
23. Franchise Fee Adjustment Factor(I -Gpercent) F 93.500%
24. Percent Change in Existing Rates 6.20/o
lscal Year.• 1-1-2001 to 12-31-2001 Pg. 2 of 6
4-11
NO PROGRAM CHANGES
Stn Luis GaWgc Co.
Base Year Rate Adjustment Applicatiachment,,
o�P 2 of A
Revenue Offset Summary
Section V11-Revenue Offsets
Historical Current Projected
Base Year
1998 1999 2000 2001 2002
Residential Revenue(without increase in Base Yr.)
Current Projected Price per No. of
Account Type Rate/Mo. Mo.'s Accounts Packa a Packa es
25. Orange bag $2.64 12 1,300 $19.83 2,06311
$82 093
26. One can $8.70 12 3,242 $338 465
26.5 Two can $17.40 12 4,197 $876 334
27. Three can $26.10 12 1 046 $327 607
Adj unincorp/supplemental Svcs E$210,663
28. Single Family Residential $1 584 800 $1 786 304 $1 835 871 $1 835 162 $1 841 082
Multiunit Residential Dumpster
29. Number of Accounts 32G 326 326 326 326
30. Revenues F$6570441 $656,5891 0686 792 $686792 $686 792
31. Less Allowance for Uncollectible Resid Ac unts
32. Total Residential Revenue $2 241 844 $2 442 893 $2,5722 663 $2 521 954 $2 527 874
Non-residential Revenue(without increase in Base Yr.)
Account Type
Non-residential Can
33. Number of Accounts 234 254 262 262 262
34. Revenues $63 077 $63,5091 $66,430 $66 430 $G6 430
Non-residential Wastewheeler
35. Number of Accounts 333 3961 460 4901 520
36. Revenues $167 408 $202 573 $234 814 $249 900 $265 200
Non-residential Dumpster
37. Number of Accounts 1087 1077 1033 1041 1062
38. Revenues $2 139 977 $2,164,888 $2 500 559 $2 G33 197 $2 723 351
39. Less:Allowance for Uncollectible Non-resi so= $0 $0 $0 $0
40. Total Non-residential Revenue $2 370 462 $2 430 970 $2 801 803 $2 949 527 $3 054 981
45. Interest on Investments $6 353 $11 562 $11,8971 $12 242 $12 597
46. Other Income $0 $0 $0 $0
47. Total Revenue Offsets $4 618 659 $4 885 425 $5 336 363 $5 483 723 $5 595 452
Fiscal Year• 1-1-2001 to 12-31-2001 Pg. 3 of 6
4-12
NO PROGRAM CHANGES
Sm Leu Gub.9c.Co.
Base Year Rate Adjustment ApplicationAttaC�fL
Cast Summary for Base Year
Section V I I I-Base Year Cost Allocation
Description of Cost Overall SLO City County11 Non
Total Franchise
Labor $1;694,852 $1,384,271 $178,4291 $132,152.
Payroll Taxes $124;415 11 $100,702 $13,623 $10,090
48. Total Direct Labor $I 819267 $1,4842 973 $192 052 $142 242
49. Corporate Overhead $14.4;666 $132,31 I $12,326 $29
Less limitation (enter as negative) $6 $0 $0 %0
Total Corporate Overhead $144,6661 $132 31 I $12 326 $29
Office Salary $557,476 $451,221 $61,04411 $45,21 1
Payroll Taxes $35;226 $28,512 $3,85711 $2,857
50. Total Office Salaries $592�702jl $479 733 $G4 901 $48 OGS
11
Bad Debt $0, $0 $0 $0
Computer Servicess $6,326 $5,786 $539 $1
Depreciation on Bldg and Equip $.17;417 $15,930 $1,484 $3
Depreciation on Trucks/Containers $291,2631 $228,261 $32,550 $36,452
Dues and Subscriptions $1:2,266. $11219 $1,045 $2
Gas and oil 5.186;325 $170,413 $15,875 $37
Interest Expense $51,04611 $46,687 $4,349 $10
Laundry $:13;'/89. $12,611 $1,175 $3
Legal and Accounting '$44,049 $40,287 $3,753 $9
Miscellaneous and Other $0 $0 $0 $0
Office Expense $.52;276 $47,812 $4,454 $10
Operating Supplies $59;976 $55,4121 $4,553 $11
Other Insurance $31;240 $28,5721 $2,662 $6
Other Taxes $33,1$5 $26,843 $3,632 $2,690
Outside Services $1':48,552 $135,865 $12,657 $30
Public Relations and Promotion v 43481 $11,2941 $1,052 $2
Recycling . .Sol Sol Sol $U
Rent $'12;262 $9.925 $1,343 $994
Telephone $42;652 $39,009 $3,634 $9
Tires(included in repairs) $5;058 $0 $0 $5,058
Travel $6,7911 $6,211 $579 $1
Truck Insurance $64',0Hl $52,599 $7,116 $5,270
Truck License $30;157. $23,188 $2,569 $4,400
Truck Repairs $16:1:;926, $131,063 $17,731 $13,132
Utilities $24 799 $22 681 $2,113 $5
51. Total Other Gen/Admin Costs "==d:.$1 3'lGG7 $I 121 GG7 $124 865 $68,13
52. Total Tipping Fees $1 j 86j9E,11 $933,4861 $129975 $123524
53. Total Franchise Fee $325 634 $2657441 $59.8901 $0
54. Total AB 939/Regulatory Fees $98 452F $98,4521 Sol $0
95. Total Lease Pmt to Affil Co.'s $0 $0 $0 $U
Total Cost $5 482 373 $4 SIG 3GG $584009 $381 998
Fiscal Year: 1-1-2001 to 12-31-2001 Pg. 4 of 6
4-13
NO PROGRAM CHANGES
San Leu GRea`c.Co
Base Year Rate Adjustment Application Attachment 2.
120 a" j Rf 1;�
Base Year Revenue Offset Summary For Information Purposes Only
Section v11-Revcnuc Offiets
Description of Revenue Overall Franchise Refuse Collection Non-franchise
Total Total SLO City SLO County Rural Total
Residential Revenue
(without increase in Base Year)
57. Single Family Residential -S1,835=.162 $1835 1 G2 $1671 652 $163,5 i $0
Multiunit Residential Dumpster
58. Number of Accounts 326 326326
59. Revenues $686792 $686.792 $686 792
60. Less Allowance for Uncollectable 11 $0 $0
11
61. Total Residential Revenue $2'521:954 $2 521 954 S2 358444 $163 510 $0 $0.
Non-residential Revenue(without increase in Base Year)
Account Type
Non-residential Can
62. Number of Accounts 262 262 262
63. Revenues $6G 430 $GG 430 $66,430
Non-residential Wastewheeler
64. Number of Accounts 49011 4901 4101 1
65. Revenues $249 900 $249 900IL_ $249,900
Non-residential Dumpster
66. Number of Accounts 1041 1041 752 67 222
67. Revenues F=$2633197. $2189684 1 $1,754,290 1 $118,1761 $317,218 $443,513-
68. Less: Allowance for Uncollectible
Non-residential Accounts $0 $0
69. Total Non-residential Revenue $2 949 527 $2 506 014 $2 070 620 $I I8 176 $317 218 $443,513
74. Interest on Investments $f2 247 $12,242'
75. Other Income $0 $0
76. Total Revenue Offsets $5 483 723. $5 027 968. $4 429'Q64 $281 GSG $317 218 $455 755
Fiscal Year: 1-1-2001 to 12-31-2001 Pg. 5 of 6
4-14
NO PROGRAM CHANGES
saaLuis CrjreassCo. Attachment L
Base Year Rate Adjustment ApplicationPaae6 °f�
Operating Information
Historical Current--71 Pro'ected
Percent FCP
Percent Base Year 1999 an a 2000 Chan a 2001__J[
Chan a 2UU2
section.IX-Opecating Data
Residential Garbage
77. Accounts 10,136 4.3% 10,569 -0.3% 10,541 0.3% 10,570 2.9% 10,877
78. Routes 4 0.0% 4 0.0% 4 0.0% 4 2.9% 4
79. Tons Collected 9,150 2.3% 8,942 4'.0% 9,300 1.8% 9,472 2.91]..//., A
% 9,747
80. Direct Labor Hours 13 OSO 0.0% 13 080 S.0% 14 120 7.4% I S 1 G0 0% I S I GO
Non-residential Garba=225,129E2.7%l
80. Accounts 53 1.2% 2,075 2.9% 2,138 2.9% 2,200
81. Routes 5 20.0% 6 0.0% G 2.9% G
Tons Collected 18 2.4% 26,444 2.7% 27,171 1.2% 27,500Direct Labor Hours22 6.3% 23 409 I I.S% 2G 182 0.0% 2G I S2
Recyclable Materials- City of SLO -Orange Bins Curbside
83. Accounts 9,722 0.5%j 9,769 0.2% 9,793 0.2%1 9,8171 0.2%1 9,841
Routes 3 0.0%1 3 0.0% 3 0.0% 3 0.0% 3
Tons Collected 4,181 -2.2%14,091 2.6% 4,196 2.9% 4,318 2.9%11 4,443
84. Direct Labor Hours 12 267 0.00/_I12 267 0.0% 12-26-7 0.0% 12 267 1 0.0% 12 267
Recyclable Materials- City o SL0 - Commercial Recycling
85. Accounts 31 3.2%1 1,7781 1.1%1 1,797 1.1% 1,816 1.0% 1,835
Routes G 0.0% G -16.7%1 51 0.0%1 51 0.0%1 5
Tons Collected 4,215 -2.2% 4,124 2.6% 4,230 2.9% 4,353 2.9% 4,479
Direct Labor Hours 17.2801 0.0%1 17.2801 -6.3% 16,200 I 0.0%I I G 200 1 0.0%I I G 200
Recyclable Materials- City of SLO - Greenwaste Collection
Accounts 9,722 0.5% 9,769PO.2% 9,793 0.2% U82!
9,841Routes 2 0.0% 20% 2 0.0% 2Tons Collected 3,872 2.2% 3,9580% 3,958 0.0% 4,073Direct Labor Hours G 240 0.0% G 240 00% G 240 16.7% S 320
Fiscal Year. 1-1-2001 to 12-31-2001 Pg. 6 of 6
4-15
NO PROGRAM CHANGES
PAGE 2 MODIFICAT IS
Attachment Z
ORIGINAL SHORTFALL $212,725 Page 7 of 8
RECYCLING LABOR $32,681
ORANGE BAG LABOR $32,681
COST OF ORANGE BAGS $6,539
93% OPERATING RATIO $5,412
REVISED SHORTFALL $290,038
4-16
NO PROGRAM CHANGES
PAGE 4:MODIFICA F SONS Attadhmentt,
Page 8 of 8
PRIOR $5,410,472
RECYL-ING LABOR $32;681
ORANGE BAG LABOR $32,681'
COST OF ORANGE BAGS. $6,539
.__:-$5.482;37:3. .
447
NO PROGRAM CHANGES
Attachment 3—
San Luis Garbage, Co.
2001 Base Year Rate Adjustment Application
Summary
Requested Increase
I. Rate Increase Requested 7.3%
Rate'Schedule
Current Increased Adjustment New Cost Per
Rate Schedule Rate Rate (a) Rate Gallon
Single Family Residential
2. Mini-Can Service(20 gallon can curb) $5.44 $5.84 $5.84 $0.29
3. Economy Service(I -can curb) $8.70 $9.34 $9.34 $0.29
4. Standard Service(2-can curb) $17.40 $18.67 $18.67 $0.29
5. Premium Service(3 -can curb) $26.10 $28.01 $28.01 $0.29
New this year
(a)Calculated rates are rounded up to the nearest$0.01.
6. Multiunit Residential and Non-residential Rate increases of 7.3°9°
will be applied to all rates in each structure
with each rate rounded to the nearest$0.01
_ .. .
Certification:._
To the best of my knowledge.the data and information in this application is complete,accurate,and consistent with the instructions
provided by the Rate Setting Manual.
Name: Tom Martin Title: Controller
Signature: Date: 09/282000
Fiscal Year: 1-1-2001 to 12-31-2001 Pg. 1 of 6
4-18
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
S.o Lois Gub,gc.Co.
BASE YEAR RATE ADJUSTMENT APPLICATION
Historical Current Projected
Financial Information Base Year
1998 1999 2000 2001 2002
(from Pg.4)
` Section I-Allowable Costs "-
6. Direct Labor $2,142,267 $1.651,13911 $1,788,72611 $1,753,9051 $1,771,444
7. Corporate Overhead $126,271 $131,548 $118,884 $144,606 $146,113
8. Office Salaries $655,138 $634,677 $487,066 $592,702 $598,629
9. Other General and Admin Costs $1,650,974 $1,609,459 $1,281.708 $1,454,603 $1,485,150
10 Total Allowable Costs $4,574,050 $4 026,823JL $3 676,3 84 $3,945,876 $4,001,337
Section 11-Allowable.9perating Eralit
11. Operating Ratio 105.1%1 95.6% 93.6% 1 93.0% 93.0%
12. Allowable Operating Profit ($220,1211 $180.67311 S251.39811 $297,002 S30...
..Seetioa.11l-Pass,ThrougG Coats - -
Tipping Fees $914,740 $919,81411 $987,83411 $1,152,529 $1,187,105
,V. Franchise Fees 1 $294,5421 $320,74911 $325,1631 $325,634 $332,147
15. AB939 Fees $D $92,800 $95,584 $98,452 $101,405
16. Lease Pmts to Affiliated Com ani $0 $0 $0 $0 SO
17. Total Pass Through Costs $1,209 282 $1,333 363 $1,408 581 $1 576 615 $1.620.657
'�.; .SQ#pdp.IY',•�N,axedut&egwtement :
18. Revenue Requirement $5,563,811 $5,546,859 $5,336 363 $5 819 493 $5 923 169
19. Total Revenue Offsets $55763,81]I $5 546 859 ;5,336.363 $5,476 407 $5,595 452
(from Page 3)
Section V,=Net.ShortE511(Surplus)
20. Net Shortfall(Surplus) $343,056
21. Total Residential and Non-residential Revenue without increase
in Base Year(pg.3,lines 32+40) $5,027,968
22. Percent Change in Residential and Non-residential Revenue Requirement G.8%
23. Franchise Fee Adjustment Factor 1 -Gpercent) 93.500%
24. Percent Change in Existing Rates 7.3%
riscal Year 1-1-2001 to 12-31-2001 Pg. 2 of 6
4-19
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
San Luis Garbage,Co. 3-5
Base Year Rate Adjustment Application 3
Revenue Offset Summary
Section V11-Revenue Offsets
Historical Current Projected
Base Year
E;
1998 1999 2000 2001 2002
Residential Revenue(without increase in Base Yr.)
Current Projected Price per No.of
Account Type Rate/Mo. Mo.'s Accounts Package Packages
25. Orange bag 1912
12 1,300 $19.83 2,063 $82 093
26. One can 12 3,242 $338 465
26.5 Two can 12 4,197 $876,334
27. Three can 1 046 327 607
Adj unincorp/supplemental svcs $203 910
28. Single Family Residential $1,584,8001 $1,786,304 $1 835 871 $1 828 409 $1 834 329
Multiunit Residential Dumpster
29. Number of Accounts 1 3261 3261 326 F 326 326
30. Revenues $657 044 $656 589 $686 792 $686 792 $686 792
31. Less Allowance for Uncollectible Resid Ac unts 0� $0 0
32. Total Residential Revenue $2 241 844 $4442 893 $2 522 663 $2 515 201 $2 521 121
Non-residential Revenue(without increase in Base Yr.)
Account Type
Non-residential Can
33. Number of Accounts 234 2541 262
34. Revenues $63 077 $63,509 $66 430 $66 430 $66 430
Non-residential Wastewheeler
35. Number of Accounts 333 396 460 490 520
36. Revenues $167 408 $202 573 $234 814 $249 900 $265 200
Non-residential Dumpster
37. Number of Accounts 1087 10771 1062
38. Revenues $2 139 977 $2,164 888 $2,500,559 $2,632 634 $2 723 351
39. Less:Allowance for Uncollectible Non-resi $0 $0 $0 $0 $0
40. Total Non-residential Revenue $2 370,462 $2430 970 $2 801 803 $2 948 964 $3 054,981
45. Interest on Investments 11 $6,35311 $11,5621 $11 897 $12 242 $12 597
46. Other Income $0 $0 $0 $0
47. Total Revenue Offsets $4 618,659 $4,885,425 $5 336 363 $5 476 407 $5,588,699
Fiscal Year. 1-1-2001 to 12-31-2001 Pg. 3 of 6
4-20
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
San Luis Garbage.Co. -q
Base Year Rate Adjustment Application ✓
Cost Summary for Base Year
Section VII1+Base Year.Cost Allocation
Description of Cost Overall SLO City County Non
Total Franchise
Labor $1;629,490 $1,318,909 $178,429 $132,152
Payroll Taxes $124,415 $100,702 $13,623 $10,090
48. Total Direct Labor $] 753 905 $1419 611 $192 052 $142 242
49. Corporate Overhead $144,666. $132,311 $12,326 $29
Less limitation (enter as negative) $0 $0 $0 $0
Total Corporate Overhead L $144.6661 $132,311 $12 326 $29 '
Office Salary $557,476: $451,221 $61,044 $45,21
Payroll Taxes $35,226: $28,512 $3,857 $2,857
50. Total Office Salaries $592.702 $479 733 $64,901 $48,0681
Bad Debt s0 $0 $0 $0
Computer Servicess $6,326 $5,786 $539 $1
Depreciation on Bldg and Equip .$.17,417 $15,930 $1,484 $3
Depreciation on Trucks/Containers $396;050 $327,048 $32,550 $36,452
Dues and Subscriptions $1.2,266 $11,219 $1,045 $2
Gas and oil $186,325. $170,413 $15,875 $37
Interest Expense $98;734. $94,375 $4,349 $10
Laundry $13,789 $12,611 $1,175 $3
Legal and Accounting $44;049 $40,287 $3,753 $9
Miscellaneous and Other s0 $0 $0 $0
Office Expense $52,276 $47,812 $4,454 $10
Operating Supplies $53;437 $48,873 $4,553 $1 1
Other Insurance $3.1,240 $28,572 $2,662 $G
Other Taxes $33,165 $26,843 $3,632 $2,690
Outside Services $148,552 $135,865 $12,657 $30
Public Relations and Promotion $12,346 $11,294 $1,052 $2
Recycling $0 $0 $0 s0
Rent $12,262 $9,925 $1,343 $994
Telephone $42,652 $39,009 $3,634 $9
Tires(included in repairs) $5,058 $0 $0 $5,058
Travel .$6,797 $6,211 $579 $1
Truck Insurance $64,985 $52,599 $7,116 $5,270
Truck License $30,157 $23,188 $2,569 $4,400
Truck Repairs $169,926 $131,063 $17,731 $13,132
Utilities $24799 $22,681 $2,113 $5
51. Total Other Gen/Admin Costs '��$:1 454603; $1,261,603 $124,8651 $68,135J
52. Total Tipping Fees :$17152229 $899,0301 $129,9751 $123,524
53. Total Franchise Fee $329 634. $265,7441 $59,890 $0
54. Total AB 939/Regulatory Fees s98 452 $98,4521 $0 $0
��. Total Lease Pmt to Affil Co.'s $0 $01 $0 $0
Total Cost $5522 491 $4 556 484 5584.0.09. $381 998
Fiscal Year. 1-1-2001 to 12-31-2001 Pg. 4 of 6
4-21
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
Sun Luis G,,UXC.Co.
Base Year Rate Adjustment Application
Base Year Revenue Offset Summary For Information Purposes Only
Section VII-Revenue Offsets
Description of Revenue OverallFranchise Refuse Collection Non-franchise
Totalj Total SLO City SLO County Rural Total
Residential Revenue
(without increase in Base Year)
57. Single Family Residential --$1,8 28,4:0:9:]
$1 S28 409 $1 664,899 $163 510 $0
Multiunit Residential Dumpster
58. Number of Accounts 326 326 326
59. Revenues $686 792 $686,7921 $686,7921
60. Less Allowance for Uncollectable $0 $0
61. Total Residential Revenue $2 515 201. $2 515 201 $2 351 691 $163 510 $011 ioll
Non-residential Revenue(without increase in Base Year)
Account Type
Non-residential Can
62. Number of Accounts 2621 262262
63. Revenues L $66 430.IL S66.410 $66,430
Non-residential Wastewheeler
64. Number of Accounts E911
65. Revenues F-�$24919ooE!�MEE$E2400
Non-residential Dumpster
66. Number of Accounts 1641 1041 7521 67 222
67. Revenues $2 632 634 $2 189 121 $1,753,727 $118176 $317,2181 =S443.513
68. Less: Allowance for Uncollectible
Non-residential Accounts $0 $0
69. Total.Non-residential Revenue .,$2,948 964. $2 505 451 $2 070 057 $118,176 $317 218 $443 513
74. Interest on Investments $12 242 $12242
75. Other Income $0 $0
76. Total Revenue Offsets FF $5,476=40-7.
$5 020 652 $4 421 748 $281,686 $317,218 $455 755
Fiscal Year: 1-1-2001 to 12-31-2001 Pg. 5 of 6
4-22
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
San Luis Garbage,Co. -- 3-10
Base Year Rate Adjustment Application
Operating Information
Historical Current Pro&ected
Permit Percent Percent Base Year Percent
1998 Chane 1999 Chun a 200D Chane 2001 Chane 2002
Section_IX-Opernting.pata
Residential Garbage
77. Accounts F 107136 4.3%1 10,569 -0.3%1 10,5411 0.3%1 10,5701 2.9%1 10,877
78. Routes 4 0.0% 4 12.5% 4.5 -11. %1 4 2.9% 4
79. Tons Collected 9,150 -2.3% 8,942 4.0% 9,300 -4.7% 8,865 2.9% 9,122
80. Direct Labor Hours 13 080 0.0% 13 080 8.0% 14.1201 -7.4% 13.0801 0.0% 13 ORO
Non-residential Garba e
80. Accounts 1,991 3.1% 2,053 1.2% 2,0781 2.9%1 2,1381 2.9%1 2,200
81. Routes 5 0.0% 5 20.0% 61 0.0%1 6 2.9% 6
Tons Collected 25,129 2.7% 25,818 2.4% 26,444 0.6% 26,608 3.4% 27,500
Direct Labor Hours 22 022 0.0% 22,022 6.3% 23,409 1 1.8% 26 182 0.0%1 2G 182
Recyclable Materials- City of SLO - Orange Bins Curbside
83. Accounts 9,722 0.5%1 9,7691 0.2%1 9,7931 0.2%1 9,817J 0.2% 9,841
Routes 1 31 0.0% 31 0.0% 3 0.0% 3 0.0% 3
Tons Collected 4,181 -2.2% 4,091 2.6% 4,196 17.4% 4,9251 2.9% 5,068
84. Direct Labor Hours 1 12,2671 0.0% 12,267. 0.0%1 12.2671 0.0% 12 267 1 0.0%1 12 267
Recyclable Materials- City of SLO - Commercial Recycling
85. Accounts 1,723 3.2% 1,7781 1.1%1 1,7971 1.1%1 1,8161 1.0%1 I,S35
Routes 6 0.0% G -16.7% 5 -20.0% 4 0.0% 4
Tons Collected 4,215 -2.2% 4,124 2.6% 4,230 16.2% 4,916 2.9% 5,058
Direct Labor Hours 17.2801 0.0% 17 280 -6.3% 16,200 -12.8% 14,1201 0.0% 14,120
Recyclable Materials- City of SLO - Greenwaste Collection
Accounts 9,7j2 - 0.5% 9,769 0.2% 9,793 0.2% 9,817 0.2% 9,841
Routes 0.0% 2 0.0% 2 0.0% 2 2.9% 2
Tons Collected 3,8 2.2% 3,958 0.0% 3,958 0.0% 3,958 2.9% 4,073
Direct Labor Hours 6 0.0% 6,240 0.0% 6 240 1 G.7% 7 280 14.3% 8.320
Fiscal Year 1-1-2001 to 12-31-2001 Pg. 6 of 6
4-23
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
PAGE 3 MODIFICATIONS J?-7
ORIGINALLY $5,483,723
CUSTOMER MIGRATION ($6,753)
OCC 2 YARDS 1/WEEK FREE ($563)
$5,476,407
4-24
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
PAGE 4 MODIFICATIONS 3. g
19 GAL CAN & INSERT $11,897
P" 'E RECYCLING WW'S $86,890
.EASED DEPRECIATION $98,787
19 GAL CAN & INSERT $6,194
BLUE RECYCLING WW'S $41,494
INCREASED INTEREST EXPENSE $47,688
BLUE RECYCLING WW'S ($34,456)
DECREASE LANDFILL EXPENSE ($34,456)
4-25
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
P3-�
CUSTOMER MIGRATION PAGE IODIFICATIONS
ORANGE BAGS $40,909.29
OB SERVICE 1,351 $2.64 $42,799.68
1 CAN 2,861 $8.70 $298,688.40
2 CAN 4,341 $17.40 $906,400.80
3 CAN 1,161 $26.10 $363,625.20
4 CAN 14 $34.03 $5,717.04
EXTRAS $13,511.51
9,728 $1,671,651.92
20 GAL CAN 1,637 $5.44 $106,814.25
1 CAN 2,575 $8.70 $268,830.00
2 CAN 4,341 $17.40 $906,400.80
3 CAN 1,161 $26.10 $363,625.20
4 CAN 14 $34.03 $5,717.04
EXTRAS $13,511.51
9,728 $1,664,898.80
($6,753)
COMMERCIAL CARDBOARD
ANNUAL
ONE YARD ONCENVK 64 $0.00 $0.00
1.5 YARDS ONCE/WK 5 $15.42 $77.11
TWO YARDS ONCENVK 7 $17.08 $119.53
ONE YARD TWICE/WK 19 $19.28 $366.32
REVENUE LOSS $562.96
4-26
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
PAGE 6 MODIFICATIONS ✓?��
RESIDENTIAL GARBAGE -607
7SIDENTIAL RECYCLING 607
COMMERCIAL GARBAGE -563
COMMERCIAL RECYCLING 563
4-27
NO ORANGE BAGS, BLUE WW'S FOR RECYCLING
Attachment q—
City of San Luis Obispo
Solid Waste Fee Survey
Section I -Introduction
1. Name of City/County Napa Redding Bakersfield
2. Contact Person Lisa Morgan Larry Michelle
3. Title of Contact Person Customer sery
4. Telephone Number 707)255-5200 X501 (530)224-6207 X5 (661)326-3114
5. Dale Contacted 9-7-2000 9-7-2000 9-19-2000
Section II -General Information
6. Are residential curbside
collection and disposal Private City City
services provided by the
municipally or private
contractor
7. Is a franchise for refuse
collection granted to the Yes No No
hauler?
B. Is a franchise for recyclable Yes No No
material collection granted to
the hauler?
9. Is there a franchise fee? 5% No No
It so, how much Is It?
10. What Is the franchise 5% No None
hauler's disposal cost per
ton?
11. Who bills customers? Private City City
Section III- Residential Service
12. Are residential rates
regulated? Yes Yes Yes
13. What Is the monthly charge 35 gal 23.06 64 gal 14.10 64 gal 14.62
for residential service? 96 15.10 96 18.98
14. How many cans are picked
up at this charge? 2 w/ green waste 1 1
15. What is the charge for None 13.10 3.95
additional cans?
Fiscal Year. Page 1 of 2
4-28
y-z
City of San Luis Obispo
Solid Waste Fee Survey
Section III - Residential Service (continued)
16. Is there a separate charge for . No No No
yard waste collection?
17. Are there any City-wide
clean-up days provided at Yes Yes Drop off location
no additional charge by
the hauler? 4 times yearly
18. Does your community have
a curbside recycling Yes Yes No ,
program?
19. Is there an additional
charge to residents for this No
program,or is it included in No No drop off points
the monthly charge for
solid waste collection?
20. It separate,what is the
charge per month? No No No
Section V --Non-residential Service
I ?1. Are non-residential rales
regulated? Yes Yes Yes
22. Provide the monthly fee for
I the following services,
assuming pick-up is one
time-per week:
23. 1 cubic yard None None 77.88
24. 1 tit cubic yards 314.92 58.75 77.88
25. 2 cubic yards405.07 69.63 98.16
26. 3 cubic yards 585.70 96.98 98.16
27. 6 cubic yards 1131.77 167.85 None
28. Effective period of
ratesquoted: 9-2000 9-2000 2000
Fiscal Year. Page 2 of 2
4-29
y-3
City of San Luis Obispo
Solid Waste Fee Survey
Section I - Introduction
1. Name of City/County San Miguel Atascadero San Luis Garbage
2. Contact Person George Cindy Judy
3. Title of Contact Person Owner Customer Sery Customer Sery
a. Telephone Number 239-5808 1 466-3636 543-0876
S. Date Contacted 1 9-7-2000 9-7-2000
Section II - General Information
6. Are residential curbside
collection and disposal Private Private Private
services provided by the
municipality or private
contractor?
7. Is a franchise for refuse
collection granted to the Yes Yes Yes
hauler?
8. Is a franchise for recyclable
material collection granted to No recycle Yes Yes
the hauler?
9. Is there a franchise fee? No Don't know 92800
It so, how much is It?
10. What is the franchise
hauler's disposal cost per Not sure Don't know 24.45
ton?
11. Who bills customers? Private Private Private
Section III- Residential Service
12. Are residential rates
regulated? Yes Yes Yes
13. What is the monthly charge 35 gal 17.40 32 gal 11.30 32 gal 8.70
for residential service? 4 cans 23.35 64 21.80 64 17.40
6 cans 32.25 96 28.90 96 26.10
14. How many cans are picked
up at this charge? 2 w/green waste 2 w/green waste
15. What is the charge for 2.00 for a stickei 4.10 3:30
additional cans?
Fiscal Year. Page 1 of 2
4-30
City of San Luis Obispo
Solid Waste Fee Survey
Section III - Residential Service (continued)
16. Is there a separate charge for . None No No
yard waste collection?
17. Are there any City-wide
clean-up days provided at Yes No Yes
no additional charge by
the hauler?
18. Does your community have yes Yes Yes
a curbside recycling
program?
19. Is there an additional
charge to residents for this No No No
program,or is it included in
the monthly charge for
solid waste collection?
20. If separate,what is the
charge per month? No No
Section V -- Non-residential Service
1. Are non-residential rates
regulated? Yes Yes Yes
22. Provide the monthly fee for
the following services,
assuming pick-up is one
time-per week:
23. 1 cubic yard 65.45 59.35 55.08
24. 1 1%2 cubic yards 73.15 70.15 61.69
25. 2 cubic yards 80.40 80.15_
26. 3 cubic yards 107.50 - 93.75
27. 6 cubic yards 215.05 153.40 121.16
28. Effective period of 3-2000 5-2000 2-2000
ratesquoted:
iscal Year. Page 2 of 2
M 4-31
City of San Luis Obispo
Solid Waste Fee Survey
Section I - Introduction
1. Name of City/County Santa Maria Davis Santa Barbara
2. Contact Person Teressa Hall Merce Pat DeRueda
3. Title of Contact Person Finance Receivable Supervisor
a. Telephone Number 25-0951 (530)756-4646 (805)965-5248
5. Date Contacted 9-7-2000
19-7-2000 V19-2000ff::::j
Section II -General Information
6. Are residential curbside Cit Private Private
collection and disposal y
services provided by the BFI
municipality or private
contractor.
7. Is a franchise for refuse
collection granted to the No Yes Yes
hauler?
8. Is a franchise for recyclable No Yes Yes
material collection granted to
the hauler?
9. Is there a franchise fee? No Yes Yes
If so, how much is it?
10. What is the franchise
hauler's disposal cost per 36.00 With Rate
ton?
11. Who bilis customers? City City City
Section III-Residential Service
12. Are residential rates yes Yes
regulated? Yes
13. What is the monthly charge 60 gal 20.10 Bags & cans 1Cans
18.07
for residential service? 90 23.20 32 gal 21.72
i18 93
20:96
4 22.99
14. How many cans are picked
up at this charge? 1 Unlimited
15. What is the charge for 60 gal 15.93 4.80
additional cans? 90 19.06
Fiscal Year. Page 1 of 2
4-32
. y-b
City of San Luis Obispo
Solid Waste Fee Survey
Section 111 - Residential Service (continued)
16. Is there a separate carge for . No green waste No No
yard waste collection?
17. Are there any City-wide
clean-up days provided at 2 free landfill 1 1
no additional charge by clays
the hauler?
18. Does your community have
a curbside recycling Yes Yes Yes
program?
19. Is there an additional No No No
charge to residents for this
program,or is it included in
the monthly charge for
solid waste collection?
20. If separate,what is the
charge per month? F
No
Section V-- Non-residential Service
1. Are non-residential rates
regulated? Yes Yes Yes
22. Provide the monthly fee for
the following services,
assuming pick-up is one
time-per week:
23. 1 cubic yard None 61.85 None
24. 1 1%2 cubic yards None 84.49 None
25. 2 cubic yards 125.53 103.15 2 days week 121.4
26. 3 cubic yards 143.51 153.68 2 days week 182.6
27. 6 cubic yards 197.45 294.66 None
28. Effective period of 1_2000 10-99 7-20000
ratesquoled:
's cal Year. Page 2 of 2
4-33
y-7
City of San Luis Obispo
Solid Waste Fee Survey
Section I-Introduction
1. Name of City/County Grover Beach Ni omo
2. Contact Person Sandy Sandy Sandy
3. Title of Contact Person Customer Sery Customer Sery Customer Sery
J. Telephone Number 489-4246 489-4246 489-4246
5. Date Contacted 9-19-2000 9-19-2000 9-19-2000
Section II -General Information
6. Are residential curbside private Private
collection and disposal Private
services provided by the
municipality or private
contractor?
7. Is a franchise for refuse
collection granted to the Yes Yes Yes
hauler?
8. Is a franchise for recyclable Yes No
material collection granted to Yes
the hauler?
9. Is there a franchise fee?
If so.how much Is it? No No No
10. What Is the franchise
hauler's disposal cost per 24.45 24.45 24.45
ton?
11. Who bills customers? Private Private Private
Section III - Residential Service
12. Are residential rates
regulated? Yes Yes Yes
32 gal 9-05 32 gal 11.45 32al 8.95
13. What Is the monthly charge 64 12.22 64 16.40 64 32gal
for residential service? 96 15.39 96 21.50 96 26.85
14. How many cans are picked 2 w/green waste
up at this charge? 2 w/green waste 2/w/green waste
15. What is the charge for 3.00 3.00 3.00
additional cans?
Fiscal Year. Page 1 of 2
4-34
y8
City of San Luis Obispo
Solid Waste Fee Survey
Section III - Residential Service (continued)
16. Is there a separate charge for
yard waste collection? No No No
17. Are there any City-wide
clean-up days provided at Yes Yes Yes
no additional charge by
the hauler?
18. Does your community have
a curbside recycling Yes Yes Yes ,
program? -
19. Is there an additional
charge to residents for this No No No
program,or is it included in
the monthly charge for
solid waste collection?
20. If separate,what is the
charge per month?
Section V- Non-residential Service
1. Are non-residential rates
regulated? Yes Yes Yes
e.2. Provide the monthly lee for
the following services,
assuming pick-up is one
time-per week:
23. 1-cubic yard 42.26 42.50 49.21
24. 1 tl2 cubic yards 48.76 50.75 55.86
25. 2 cubic yards 55.26 54.90 62.51
26. 3 cubic yams 66.10 65.25 74.47
27. 6 cubic yards
28. Effective period of
ratesquoted: 6-1-99 3-1-98 10-1-99
Fiscal Year. Page 2 of 2
4-35
y_9
City of San Luis Obispo
Solid Waste Fee Survey
Section I — Introduction
1. Name of City/County Oceano Arroyo Grande
2. Contact Person Sandy Sandy Bill L kins
3. Title of Contact Person Customer Serv. Customer Sery Supervisor
a. Telephone Number 1 489-4246 1 489-4246 (805)652-45
5. Date Contacted 9-19-2000 9-19-2000 9-19-2000
Section II —General Information
6. Are residential curbside
collection and disposal Private Private Private
services provided by the
municipalIV or private
contractor?
7. Is a franchise for refuse
collection granted to the yes Yes Yes
hauler?
8. Is a franchise for recyclable yes Yes Yes
material collection granted to
the hauler?
9. Is there a franchise fee? Don't know Don't know 5%
It so, how much is it?
10. What is the franchise
haulers disposal cost per Don't know Don't know
ton?
11. Who bills customers? Private Private Private
Section III — Residential Service
12. Are residential rates
regulated? Yes Yes Yes
13. What is the monthly charge 32 gal 8.70 32 gal 9.95 34 Gal 17.51
for residential service? • 64 12.50 64 12.95 64 19.40
96 24.45 96 15.95 101 22.54
14. How many cans are picked
up at this charge? 2 w/green waste 2 w/green waste 2 w/green waste
15. What is the charge for 3.00 3.00 5.00
additional cans?
Fiscal Year: Page 1 of 2
4-36
City of San Luis Obispo
Solid Waste Fee Survey
Section III - Residential Service (continued)
16. Is there a separate charge for .
yard waste collection? No No No
17. Are there any City-wide yes Yes No discontinued
clean-up days provided at
no additional charge by
the hauler?
18. Does your community have
a curbside recycling Yes Yes Yes
program?
19. Is there an additional
charge to residents for this No No Yes-
program,or is it included in
the monthly charge for
solid waste collection?
20. If separate,what is the
charge per month? 1.00
Section V— Non-residential Service
1. Are non-residential rates
regulated? Yes Yes Yes
22. Provide the monthly fee for
the following services,
assuming pick-up is one
time-per week:
23. 1 cubic yard 42.50 49.21 None
24. 1 1/2 cubic yards 5075 55.86 78.62
25. 2 cubic yards 62.51 85.37
26. 3 cubic yards 74.47 113.40
27. 6 cubic yards
28. Effective period of
ratesquoted: 3-1-98 10-1-99 9-1-2000
!scat Year. Page 2 of 2
4-37
i
City of San Luis Obispo
Solid Waste Fee Survey
Section I— Introduction
1. Name of City/County Pleasanton
2. Contact Person Gina
3. Title of Contact Person Manager
a. Telephone Number (925)846-2042
5. Date Contacted 9-7-2000
Section II —General Information
6. Are residential curbside
collection and disposal Private
services provided by the
municipality or private
contractor?
7. Is a franchise for refuse
collection granted to the Yes
hauler?
8. Is a franchise for recyclable No
material collection granted to
the hauler?
9. Is there a franchise fee? Don't know
If so,how much is it?
10. What is the franchise
hauler's disposal cost per Don't know
ton?
11. Who bills customers? Private
Section III —Residential Service
12. Are residential rates Yes
regulated?
13. What is the monthly charge 35 gal 20.04
for residential service? 90 22.30
14. How many cans are picked
up at this charge? 2 w/green waste
15. What is the charge for full rate
additional cans?
Fiscal Year. Page 1 of 2
4-38
y-�L
City of San Luis Obispo
Solid Waste Fee Survey
Section III - Residential Service (continued)
16. Is there a separate charge for . No
yard waste collection?
17. Are there any City-wide
clean-up days provided at No
no additional charge by
the hauler?
18. Does your community have
a curbside recycling es
program?
19. Is there an additional
charge to residents for this No
program,or is it included in
the monthly charge for
solid waste collection?
20. If separate, what is the
charge per month?
Section v -Non-residential Service
'1. Are non-residential rates Yes
regulated?
22. Provide the monthly fee for
the following services,
assuming pick-up is one
time-per week:
23. 1 cubic yard None
24. 1 1/2 cubic yards None
25. 2 cubic yards 168.55
26. 3 cubic yards 240.82
27. 6 cubic yards None
28. Effective period of 6-2000
ratesquoted:
fiscal Year. Page 2 of 2
4-39
Attachment 5
council. May 29 2000
j aGEnaa uEpont
C I T Y OF SAN LU IS O B I S P O
FROM: John Moss, Utilities Directo%IK-
Prepared By: Ron Munds, Utilities Conservation Coordinator
SUBJECT: TENTATIVE APPROVAL OF CHANGES TO SOLID WASTE AND
RECYCLING SERVICES
CAO RECOMMENDATION
Consider and provide conceptual approval of modifications of the current solid waste and
recycling collection system to:
1. Change the current source separated orange bin recycling program to a commingled
recyclable waste wheeler service; and
2. Eliminate the Orange Bag program for refuse collection and initiate a new 19 gallon waste
wheeler service.
Direct staff to:
1. Incorporate the addition of a commercial and residential commingled waste wheeler
service in the year 2001 base year application analysis.
2. Incorporate the addition of a 19 gallon waste wheeler service level in the year 2001 base
year application analysis.
3. Develop a public information program to phase out the Orange Bag service level by
January 1, 2001 contingent upon the approval of the 19 gallon service level.
DISCUSSION
Background
The City has strived for the past ten years to develop a solid waste management strategy which
promotes waste reduction and recycling in a cost effective manner. Many program changes have
occurred during this period, all of which have been implemented to reduce the amount of waste
going to the landfill by 50% by the end of the year 2000.
In 1994, the City Council adopted the Rate Setting Process and Methodology Manual for
Integrated Solid Waste Rates (Manual) which identified the following four rate structure
objectives for the solid waste management program:
1. Promote source reduction, maximum diversion, and recycling.
2. Provide equity and fairness within classes of customers.
3. Be environmentally sound.
4-40
5�-
Council Agenda Report—Solid Waste Service Changes
Page 2
4. Be easy to understand.
As stated previously, Council has approved programs and a rate structure to achieve a majority of
these objectives. Staff is proposing two modifications to service that will enhance the City's
ability to further reduce waste, encourage recycling and have a positive impact on the
environment.
Commingled Recycling
Currently, commercial and residential customers are required to separate newspaper and mixed
paper in different bags and place these items next to their orange bin which contains the glass,
metals and plastics. The primary reason for the current practice of separating paper and
cardboard from the other material is that the SLOCO Recycles facility on Tank Farm Road
needed this source separation in order to efficiently process the material. A new Material
Recovery Facility (MRF) has recently been constructed at Cold Canyon Landfill. This facility is
equipped with state of the art material processing equipment and is able to accept and process all
recyclable material completely commingled. This means that customers no longer need to
separate material prior to collection at the curb. Customers would place all their recyclable
material in a blue waste wheeler. This type of service has been implemented in Arroyo Grande
and Pismo Beach and has resulted in higher participation and a dramatic increase in the tons of
recyclable material collected.
Moving to this type of collection system is consistent with the Council approved 32, 64 and 96
gallons refuse service program which enables San Luis Garbage Company (SLG) to collect the
containers with an automated truck. Similarly, utilizing waste wheelers for recycling will enable
SLG to collect recycled materials by either semi-automated or automated trucks. Additionally,
this system is likely to decrease the number of work related injuries resulting from lifting the
orange bins.
From the customer's standpoint, a waste wheeler will be more convenient in terms of storage of
recycled material (i.e. animal proof, more sanitary), easier to transport to the curb and offer
expanded capacity over the orange bin. The waste wheeler will also protect the paper and
cardboard material from moisture damage during wet weather. If the Council chooses to move in
this direction, the program would be implemented by January 1, 2001.
Addition of a 19 Gallon Waste Wheeler Service Level
As stated previously, one of the four rate setting objectives is be environmentally sound. The rate
setting manual specifically states "Working towards environmental soundness means phasing out
the use of disposable container (orange bags)". In an effort to achieve this goal, City staff and
SLG implemented a pilot program in October 1999 to evaluate the use of a 19 gallon waste
wheeler as an alternative to orange bags. The goal of the program was to determine if the 19
gallon waste wheeler would be acceptable from both a customer and collection standpoint.
4-41
S-3
Council Agenda Report--Solid Waste Service Changes
Page 3
Eighteen households voluntarily participated in the program. Cost was the key issue with all the
participants. The overwhelming response was that if the service was priced comparable to what
they were paying for orange bag service, the container met or exceeded their expectation. If the
19 gallon waste wheeler were priced consistent with the volume based rates effective February 1,
2000, the cost of the service would be approximately $5.20 per month. An orange bag customer
who put out either one or two bags per month currently pays $4.63 or $6.62 respectively. From
the collection standpoint, SLG determined the containers were compatible with their collection
process and would be an improvement to the overall collection system.
If Council recalls, one of the reasons for adding the 32 gallon waste wheeler service level was to
move more customers out of orange bags and into a container that could be collected by an
automated truck. The goal was to make the collection system more efficient and decrease the
number of work related injuries to SLG employees resulting from lifting the bags. By adding the
19 gallon waste wheeler service and phasing out the use of orange bags, the solid waste collection
system will have the potential to be collected entirely by an automated truck. Additionally, state
law requires solid waste be collected at a minimum of once a week. Technically, orange bags
customers who do not place their garbage out every week are in violation of this law. By moving
to a waste wheeler service, customers can place their garbage out every week without incurring
an additional cost.
Phasing Out Orange Bags
If council concurs with the recommendation to move to a 19 gallon waste wheeler, it is
recommended that the City phase out the orange bag service level by January 1, 2001. In order to
transition to the new system, it is recommended that a public information program begin as soon
as possible so that customers do not buy more bags than needed. Staff will work with SLG to
ensure a reasonable buy-back program is developed in the event customers have extra orange
bags after the phase out date.
CONCURRENCES
San Luis Garbage Company concurs with the recommendations made in this report.
FISCAL IMPACT
There is no fiscal impact resulting from the recommendations made in this report. A thorough
analysis of the service level changes recommended in this report will be presented to Council as
part of the base year rate setting process.
4-42