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HomeMy WebLinkAbout02/20/2007, PH5 - SAN LUIS GARBAGE COMPANY BASE YEAR SOLID WASTE RATE ADJUSTMENT APPLICATION. council R-6 j acEnna Repo�2t ,�N� ::�r CITY OF SAN LUIS OBISPO FROM: John Moss, Utilities Director Prepared By Ron Munds, Uti sties Conservation Coordinator SUBJECT SAN LUIS GARBAGE COMPANY BASE YEAR SOLID WASTE RATE ADJUSTMENT APPLICATION. CAO RECOMMENDATION Adopt a resolution increasing solid waste rates by 6.3% to become effective on April 1, 2007. DISCUSSION Background The City's Rate Setting Manual For Setting Integrated Solid Waste Rates (Rate Setting Manual), adopted by the Council in 1994, provides a process and schedule for rate application review and binds the City's franchised contractor and the City to a method of determining revenue adequacy. Under this methodology, base year applications are prepared every third year. Base year applications require a detailed submittal and review of past, current and future operating expenses. Less detailed interim year applications are required in year two and three of the cycle, and are intended to adjust only for the prior year's cost-of-living increase, and any changes to the estimated landfill tipping costs. In the base year 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. For purposes of computing the required revenue to be obtained from the rate payers,it is necessary to determine which of the contractor's cost are allowable, non-allowable and pass through. Profit is permitted on allowable costs such as direct labor, and for other general and administrative costs, but not on non-allowable costs such as charitable contributions and income taxes. Pass through costs, such as tipping fees at the landfill and the franchise fee, do not ear a profit but can be recovered through the rate base. The primary goal of the rate setting process and methodology is to determine integrated solid waste management rates which are fair to residents and which provide adequate revenue to the San Luis Garbage Company (SLG), the City's franchised solid waste collection contractor. The four rate setting objectives identified in the manual are: 1. To promote source reduction, maximum diversion and recycling; 2, To provide equity and fairness within classes of customers; Solid Waste Rate Review Page 2 3. Be environmentally sound; and 4. Be easy to understand. It is important to note that this is the first rate increase request from SLG in two years. The last rate adjustment was a 3.42% increase in February 2005. No rate increase was requested in 2006 because of the delay in new truck deliveries which resulted in .a reduced depreciation dollar amount for 2006, and due to cost savings measures implemented by SLG including reduced costs in insurance, fuel and general maintenance items, such as tires, attributed to its corporate ownership by Waste Connections, Inc.. Key Cost Factors in the Solid Waste Rate Application The following are "pass through" costs that can be recovered through the rate base per the rate setting manual: I. Tipping Fees The landfill tipping fee rate was increased by $1.00 per ton to pay for the new universal waste requirements. Landfill tipping fees are regulated by the San Luis Obispo County's Board of Supervisors. The Board of Supervisors approved the $1.00 per ton increase in October 2006. This represents about 0.7% of the requested rate increase. 2. Vehicle Depreciation SLG has been updating its fleet to comply with new air quality regulations and to increase operational efficiencies. Three new trucks scheduled for delivery in early 2006 did not arrive until December, this coupled with the anticipated delivery of five additional new trucks in 2007 increases the cost for depreciation by $173,604. New vehicle depreciation represents about 2.6% of the requested rate increase. 3. Direct Operating Cost As previously stated, SLG has implemented many cost saving measures to keep general operating costs at or below historical levels. One area that the company has seen a.significant increase in is salaries for the general labor force. In order to stay competitive in the job market and retain quality employees, SLG has had to raise salaries to be more in line with other local waste companies and governmental institutions. Direct operating cost increases attributable to increased labor costs represent about 2.4% of the requested rate increase. 4. Franchise Fee/AB 939 Fee The franchise fee is calculated based on 10% of SLG's gross revenue and is paid to the City's General Fund. The AB 939 fee, which is collected to offset the Utilities Department cost of managing the City's solid waste programs, is increased by 3% each rate application to reflect cost-of-living increases (not calculated based on gross revenue). The combination of these fees represents about 0.6% of the requested rate increase. Solid Waste Rate Review Page 3 Other Proposed Changes Reflected in the Rate Application Small Truck/Manual Service When the Tumbling Waters development was under planning review, it was determined that, because of the housing density and limited space on the private streets, solid waste services would be provided by a smaller collection vehicle known as the "pup" truck. This is a manual service with a "pickup sized" vehicle, meaning the driver must get out of the truck to empty each container which makes the cost approximately 40%.more thaAdutomated service; It is staff's intent to limit the availability of this service to special circumstances, such as Tumbling Waters development, because of the long term cost implications to the subscribers to the service and the rate base as a whole (i.e. the current truck can not service more than Tumbling Waters, with more accounts the purchase of an additional truck would likely be needed which would be a pass through cost to the entire rate base). This rate application establishes a new rate structure for this type of service as follows: Service Level Proposed Service R.4-te Mini-can $11.62/month (19 gallon) Economy $18.59/month (32 gallon waste wheeler) Standard $37.18/month (64 gallon waste wheeler) Premium $55.77/month (96 gallon waste wheeler) Commercial Commingled Recycling In the past, the solid waste rates included once a week collection of up to two yards of recyclable material before a business would incur additional charges for recycling pickup. In an effort to encourage more recycling in the commercial sector and maximize collection efficiencies, SLG has proposed offering up to eight yards of recycling (the largest container available), collected once a week at no charge. Survey of 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 Solid Waste Rate Review Page 4 against other cities to determine if the rates are reasonable. Attachment 3 shows 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, local 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 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. In the City, the services reflected in the rates include weekly-automated refuse collection (at a prescribed level), curbside recycling service (64 gallon container provided) and curbside green waste recycling (96 gallon container provided). Rates are set according to the level of refuse service requested by the customer. Future Changes to the Commercial Solid Waste Rate Structure It has been a goal of the solid waste collection system to have all garbage and recyclables placed in waste wheeler containers in order to minimize litter from broken bags and protect the safety of the collection personnel when lifting the bags (this is also a workmen's compensation insurance issue which can effect the rates). Additionally, one of the key objectives of the solid waste rate structure has been to charge by the volume or size of the.containd (i.e. a 64 gallon waste wheeler would cost twice as much as a 32 gallon waste wheeler) as is the case with the residential rate structure. To this end, staff will be proposing the elimination of bag service in the downtown area and will present to the Council, at future date, a truly volumetric rate structure for commercial waste wheeler service. The elimination of bag service will help control the littler problems associated with the bags and will also encourage more recycling by downtown businesses. CONCURRENCES The San Luis Obispo County Integrated Waste Management Authority assisted in the review of this rate application and concurs with the recommendation. a5=S� Solid Waste Rate Review Page 5 FISCAL IMPACT The proposed rates are as follows: Residential Solid Waste Services/Rates Service Level Current Proposed Proposed Small Service Rate Service Rate Truck/Manual Service Rate Mini-can $6.68/month $7.10/month $11.62/month (19 gallon) Economy $10.69/month $11.36/month $18.59/month (32 gallon waste wheeler) Standard $21.39/month $22.72/month. $37.18/month (64 gallon waste wheeler) Premium $32.08/month $34.08/month $55.77/month (96 gallon waste wheeler) Commercial Solid Waste Services As identified in Exhibit A to Attachment 1. ATTACHMENTS 1. Resolution and Exhibit A -Rate Schedule for Integrated Solid Waste Rates 2. 2007 Base Year Rate Application 3. Survey of Other Cities - Solid Waste Rate Attachment 1 RESOLUTION NO. (2007 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 2007 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. 9634 (2004 series) is hereby rescinded as of 11:59 p.m., March 31, 2007. SECTION 2. The rates set forth in Exhibit A shall be effective April 1, 2007. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted on this day of 2007. ATTEST: David F. Romero, Mayor City Clerk Audrey Hooper APPROVED AS TO FORM: City Attorney Jonathan Lowell s-� CITY OF SAN LUIS OBISPO Exhibit A SINGLE FAMILY and MULTIUNIT RESIDENTIAL(4 units or less) VOLUME-BASED RATES SMALL TRUCK/ AUTOMATED SERVICE MANUAL SERVICE (determinedby city staff) MINI-CAN SERVICE $ 7.10 1per month for one 19 gallon wastewheeler container collected once each week $ 11.62 ECONOMY RATE $" 11.36"1per month for one 32 gallon wastewheeler container collected once each week $ _ 18.59 STANDARD RATE $ 22.72 per month for one 64 gallon wastewheeler container collected once each week $ 37.18 PREMIUM RATE $ _ 34.08 per month for one.96 gallon wastewheeler container collected once each week $ 55.77 PREMIUM PLUS RATE $ 10:35-per month for additional 32 gallon wastewheeler container collected once each week $ 16.94 $ 20.71 per month for additional 64 gallon wastewheeler container collected once each week $ 33.89 $ 31.07' per month for additional 96 gallon wastewheeler container'collected once each week $ 50.84 per month for vacation (less 17.8%disposal) SERVICE AWAY FROM THE STREET CURB $ 7.75 additional per month per can or container LATE MAKEUP COLLECTIONS WITH GARBAGE TRUCK(phone call required) $ 1:112 per trip plus charges identified above for any extra containers or equivalent volume $ 5.69 additional charge per 33 gallon can or equivalent volume per collection EXTRA COLLECTIONS WITH PICKUP OR FLATBED TRUCK, hone call required) $ 17.28 per trip plus: $ _ 5.69 per garbage can or equivalent volume(amounts over six cans by quotation) $ 4.31 per white good article(once a month,residential customers only) $ 4.31 per piece of furniture(residential customers only) $ 4.31 per mattress or boxs rin residential customers only) Proposed.Rate Schedule for Integrated Solid Waste Services effective 4-1-2007 EX111BIT "A" CITY OF SAN LUIS OBISPO 6.30%AVERAGE ACROSS THE BOARD INCREASE FOR INTEGRATED SOLID WASTE ACTIVITIES EFFECTIVE 4-1-2007 ' MULTI-UNIT RESIDENTIAL DUMPSTER CONTAINERS(PER MONTH) Size of COLLECTIONS PER WEEK container cubicyards) 1 2 3 4 5 6 7 1 $ 82.00 $ 119.43 $ 156.81 $ 194.22 $ 231.63 $ 269.00 $ 306.41 1.5 $ 94.95 $ 146.73 $ 198.53 $ 250.30 $ 302.10 $ 353.87 $ 405.68 2 $ 107.89 $ 172.63 $ 237.36 $ 302.09 $ 366.83 $ 431.54 $ 496.27 3 $ 133.77 $ 224.42 $ 315.04 $ 405:68 $ 496.30 $ 586.94 $ 677:57 4 $ 159.67 $ 277.64 $ 395.63 $ 513.59 $ 631.56 $ 749.55 $ 867.54 6 1 211.44 $ 382.64 $ 553.85 $ 725:05 $ 896.27 $ 1,067.46 $ 1,238:67 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 $ 20.15 $ 31.63 $ 43.151 $ 54.65 $ 66.15 $ 77.65 $ 89.-14- 2 $ 25.89 $ 40.29 $ 54.67 $ 69.05 $ 83.46 $ 97.83 $ 112.21 3 $ 31.65 $ 48.94 $ 66.19 $ 83.49 $ 100.74 $ 118.01 $ 135.29 4 $ 37.42 $ 57.56 $ 77.69 $ 97.84 $ 117.99 $ 138.14 $ 158.27 5 $ 43.17 $ 66.18 $ 89.20 $ 112.21 $ 135.25 $ 158.25 $ 181.27 6 $ 48.94 $ 74.81 $ 100.70 $ 126.60 $ 152.47 $ 178.38 $ 204.26 7 $ 54.68 $ 83.48 $ 112.22 $ 141.01 $ 169.78 $ 198.56 $ 227.32 8 $ 60.45 $ 92.11 ,$ 123.77 $ 155.41 1 187.09 $_ 218.75 $ 250.40 9 $ 66.19 $ 100.73 $ 135.27 $ 169.29 $ 204.32 $ 238:85 $ 273.38 Maximum volume and weight per garbage can:35allons and 80 ounds Additional charge per can per collection: $ 6.19 Sunday service 1 $ 50.36 1 per month in addition to garbage service monthly cost Proposed Rate Schedule for Integrated Solid Waste Services effective 4-1-2007 EXHIBIT "A77 CITY OF SAN LUIS OBISPO COMMERCIAL 96 GALLON WASTE WHEELER CONTAINERS PER MONTH number COLLECTIONS PER WEEK Of containers 1 2 3 4 5 6 7 1 $ 35.91 $ 57.49 $ 79.08 $ 100.66 $ 122.26 '$ 143.82 $ 165:43 2 $ 58.87 $ 90.49 $ 122.14 $ 153.78 $ 185.43 $ 217.06 $ 248.73 3 $ 81.82 $ _ _ 123.52 $ 165.24 $ 206.96 $ 248.69 $ 290.38 $ 332.10 4 $ 104.76 $ 156.54 $ 208.35 $ 260.12 $ 311.92 $ 363.68 $ 415.51. 5 $ 127.71 $ 189.59 $ 251.43 $ 313.31 $ 375:16 $ 437.02 $ 498.88 6 $ 150.67 $ 222.61 $ 294.54 $ 366.46 $ 438.39 $" 510.36 $ 582.26 7 $ 173.63 $ 255.63 $ 337.63 $ 419.64 $ 501.65 $ . 583.65 $ 665:65.: 8 $ 196.58 $ 288.66. $_ 380.72 $ 472.80 $ 564:88 $ 656.96 $ 749.03 9 $ 219:54 $ 321".67 $ 423.81 $ 525.94 $ 628.08 $ 730.21 $ 832.33 COMMERCIAL DUMPSTER CONTAINERS PER MONTH Size Of container COLLECTIONS PER WEEK cubicyards) 1 2. 3 _ 4 5 6 7 1 $ 71.93 $ 100:70" $ 129:48 $ 158.25 $ 187:00- $ 215.79" $ 244:58 1.5 $ 80.56 $ 117.95. $ 155.35_ $ 192:76:: $ 230.16 $ 267.57 $ 304.97 2 $ 89.19 $ 133.78 $ 178.40 $ 223.00 $ _ 267.60 $ 312.19 $ 356.80 3 $" 106.45 $. 168.30 $ _. 230.16 $ 292.02. $. 353.87 $ 415.74 $ 477.61 4 $ ._ '123.70 $ 204.27" $ 284.81 $ 365:40 $ 445:94 $ _ 526:50 $ 607:08 6 $' 158.22 $ 271.88 $ 385.54 $ 499.21 $ 612.87 $ 726.52 $ 840.20 8 $ 192.73 $ "339.49',$ 486.23 $" 632.98 $ 779.73 $ 926.48 $ 1,073.23 The rates shown above include She monthly container rental fee and are the same for bins and garwoods,when volume is identical. Sunday service $ 50.36 per month in addition to garbage service monthly cost UNSCHEDULED EXTRA COLLECTIONS FOR COMMERCIAL CUSTOMERS AND MULTI-UNIT RESIDENTIAL DUMPSTER CUSTOMERS "$ 63.30 1 cubic yard(minimum charge) 2 cubic yards 3 cubic yards 4 cubic yards Proposed Rate Schedule for Integrated Solid Waste Services effective 41-2007 .S"- 9 EXHIBIT "All CITY OF SAN LUIS OBISPO RATE SCHEDULE FOR COMMERCIAL RECYCLING ACTIVITIES COMMINGLED RECYCLING COLLECTION COMMERCIAL DUMPSTER CONTAINERS(PER MONTH) Size of container COLLECTIONS PER WEEK cubicyards) 1 2 3 4 5 6 ._ 7 1 INCLUDED $ 25.17 $ 32.37 $ 39.56 $ 46.75 $ 53.96 $ 61.13 1.5 INCLUDED $ 29.49 $ 38.83 $ 48:18 '$ 57.53 $ 66.88 $ 76.25 2 INCLUDED $ 33.44 $ 44.59 $ 55.75 $. 66.89 $ 78.05 $ 89.20 3 INCLUDED $ 42.08 $ 57.53 $ 73.01 $ 88.47 $ 103.94 $ 119.40 4 INCLUDED $ 51.09 $ 7.1.29 $. 91.34 $ 111.48 $ . 131.64. $ 151.76 6 INCLUDED $ 67:97- $ 96.39 $ 124.81 $ 153.24 $ 181.62 $ 210.05 8 INCLUDED $ 84.86 $" 121.58 $ 158:25 $ 194.931 $ 231.641 $ 268.31 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 white/colored paper is available at $ 48.67 per hour POLYSTYRENE COLLECTION Polystyrene is no longer collected for recycling. It should be thrown away as trash.. However rigid#6 is recyclable(plastic beer cups,clear plastic wine glasses,etc.) Proposed Rate Schedule for Integrated Solid Waste Services effective 4-1-2007 �d & Luis Garbage Co. ATTACHMT 2 970 Monterey Street • San Luis Obispo, California 93401 • Telephone (805) 543-0875 City of San Luis Obispo Ron Munds 879 Morro Street SLO, CA 93401 January 5, 2007 RE: Base year 2007 Rate Increase Request San Luis Garbage is requesting a rate increase of 6.3% effective 4-1-07: The 6.3% increase breaks down as follows: 0.7% Landfill cost increases 2.6% Increased depreciation on eight new trucks. 2.4 % Direct operating costs 5.7% before franchise fee adjustment The landfill rate was raised by $1.00 per ton to pay for the new universal waste requirements. Three new trucks from 2006 that didn't arrive until Dec and the five new trucks from early 2007 combined for an increase in depreciation of$173,604. Direct operating cost increase is driven by a labor retention problem. We continue to struggle keeping our existing employees and bringing new ones on board due to the high cost of living on the central coast. Housing prices in other states and California counties are the main reasons for leaving given in exit interviews. We are trying to stay competitive with the City of San Luis Obispo pay scales but are often under the pay rates offered by the City of Santa Maria and other local entities vying for quality employees. Fuel costs are projected to be the same as 2006. Our last increase was 3.42% on 2-1-05. 1 can make myself available to meet with staff or yourself,just call me. This increase is being submitte to the C unty of SLO for the exact same 6.3%. arti eneral', anaeer ATTACHMENT z : San Luis Garbage,Co. 2007 Base Year Rate Adjustment Application Summary Requested Increase i 1. Rate Increase Requested 6.3% Rate Schedule o- Current Increased Adjustment New Cost Per Rate Schedule Rate Rate (a) Rate Gallon Single Family Residential 2. Mini-Can Service(20 gallon can curb) $ 6.68 $7.10 $7.10 $0.36 3. Economy Service(1 -can curb) $ 10.69 $11.36 $11.36 $0.36 4. Standard Service(2-can curb) $ 21.39 $22.74 ($0.02)1 $22.72 $0.36 5. Premium Service(3-can curb) $ 32.08 $34.10 ($0.02)1 $34.08 $0.36 (a)Calculated rates are rounded up to the nearest$0.01. 6. Multiunit Residential and Non-residential Rate increases of 6 3% 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 Tine: Controller Signature: Date: 01/04/07 -, Fiscal Year: 1-1-2007 to 12-31-2007 Pg. 1 of 6 .�'�z ATTACHMENT 2 Sm wm Garb V.CA " BASE YEAR RATE ADJUSTMENT APPLICATION Historical Current Projected Financial InformationL11_ Base Year 2004 2005 2006 2007 2008 (from Pg.4) Section I-Allowable Costs 6. Direct Labor $1,852,077 $1,908,609 $1,971,472- $2,1.95,194. _, $;,;39,098 7. Corporate Overhead $152,989 $157,579 $162,622 $168,8D2 . .$172,178 8. Office Salaries $261,135 $323,788 $415,670 $430,252 $438,857 9. Other General and Admin Costs $1,940,934 $2,147,887 $2.152,204 $2,338,210 $2,366,268 10 Total Allowable Costs $4,207,135 $4,507,863 $4,701,968 $5,132,458 $5,216,401 Section H-Allowable Operating Profit 11. Operating Ratio 87.2%] 91.5%1 93.0% 12. Allowable Operating Profit $539,073 1 $471,513 $401,277 $386,314 $392,632 Section nl-Pass Through Costs 13. Tipping Fees $1,247,989 $1,274,911 $1,286,229 $1,334,429. $1,334,429 14. Franchise Fees $672,084 $714,718 $736,098 $751,104 $766,126 15. AB939 Fees $107,580 $122,028 $124,272 $128,000 $131,840 16. Lease Pmts to Affiliated Compani $0 $0 .,,.$0 $0 17. Total Pass Through Costs $2,027,653 $2,111,657 $2,146,599 $2,213,533 $2,232,395 Section IV-Revenue Requirement 18. Revenue Requirement $7,732,305 $7,841,428 19. Total Revenue Offsets FF-$6,773,861]1 $7,091,033 11 $7,249,843 1 $7,350,464 $7,717,832 (from Page 3) hr- (It ACrnunIs Section V_N�r Shortf80,t�rprura/ 20. Net Shortfall(Surplus) $381,84( i y 21. Total Residential and Non-residential Revenue without increase in Base Year(pg.3,lines 32+40) $6,741,966 22. Percent Change in Residential and Non-residential Revenue Requirement 5.70% 23. Franchise Fee Adjustment Factor(1 -6 percent) 90.000% 24. Percent Change in Existing Rates 630% Fiscal Year., 1-1 2007 to 12-31-2007 Pg. 2 of 6 _/� Sm,Luis Gffbagc,Co. ATTACHMENT 2 Base Year Rate Adjustment Application Revenue Offset Summary • � Seetion VII Revemie Oesets Historical Current Projected ��E Base 7 2004 2005 2006 2007 2008 Residential Revenue(without increase in Base Yr.) Current Projected Account Type Rate/Mo. Mo.'s Accounts 25. Mini can 6.68 12 1,146 91,863 26. One can 10.69 12 4,030 516,968 26.5 Two can 21.39 12 3,969 1,018,763 27. Three can 32.08 12 923 355,318 Adj unincorp/supplemental svcs 494,482 28. Single Family Residential IF$2,196,597 $2,306,231 $2,342,457 $2,385 531 $2 504,808 Multiunit Residential Dumpster 29. Number of Accounts 3531 3591 36511 371 38 30. Revenues $928,947 $975,272 $990,627_ $1,008,888 $1,059,332 31. Less Allowance for Uncollectible Resid Accounts - • 11 1 $0 32. Total Residential Revenue $3,125,544 $3,281,503J $3,333,084 $3,394,419 $3,564,140 .0 •0 Non-residential Revenue(without increase in Base Yr.) Account Type Non-residential Can 33. Number of Accounts 1155 158 16011162 172 34. Revenues $96,901 1 $101,733 $103,335J[' 105,240 $; 110,502 Non-residential Wastewheeler 35. Number of Accounts 14291 4291 42911 . 43111 433 36. Revenues 11 $288,427 1 $302,811 1 $307,578 IL_$313,248 11 $328,910 Non-residential Dumpster 37. Number of Accounts r1 1 811 1M 10.41 38. Revenues $3,228;42'1 $3,385,732 $3,487,396 irl $3,521,450 I$3,697 523 39. Less: Allowance for Uncollectible Non-resid 40. Total Non-residential Revenue $3,613,749 $3,790,276 $3,898,309 $3,939,938 11 $4,136,93511 45. Interest on Investments $2,610 $19,253 $18,45011 $16,10711 $16,757 46. Other Income $31,958 � 11 -1� 47. Total Revenue Offsets $6,773,861 $7,091,033 $7,249,843 11L $7,350,464 IL $7,717,832 Fiscal Year. 1-1-2007 to 12-31-2007 — Pg 3 of 6 smLAi.a4,bW.C. ATTACHMENT 2 Base Year Rate Adjustment Application Cost Summary for Base Year _ Section VM•Base Year Cost Allocation Description of Cost 2004 2005 2006 2007 BASE ,YEAR Labor $1,699,319 $1,751,776. $1,812,480 11 $2,018,381 Payroll Taxes $152,758 $156,833 L $158,992 $176,813 48. Total Direct Labor L $1,852,077 1 $1,908;609 $1,971,472 $2,195,194 0 49. Corporate Overhead $218,392 $211,864 $214,148 $234,625 Less limitation(enter as negative) ($65,403) ($54,285) {$51,526) ($65,823) Total Corporate Overhead $152,9891 $157,579 $162,622 $168,802 Office Salary $213,779 $282,026 $375,802 $386,631 Payroll Taxes $47,356 $41,762 $39,86811 $43,621 50. Total Office Salaries $261,135 $323,788j $415,670 $430,252 Bad Debt $6,321 $8,289 $8,021 $7,800 Allocated expenses $0 $0 $0 $0 Bond expense $6,765 $15,109 $13,530 $14,044 Depreciation on Bldg and Equip $0 $0 $0 Depreciation on Trucks/Containers $393,215 $ 386,511 $ 327,566 $ 501,170 Dues and Subscriptions $6,0351 $8,5801 $13,224 $13,727 Gas and oil $224,738 $259,431 $368,731 $368,731 Interest Expense $0 Laundry $13,514 $21,095 $20,471 $22,938 Legal and Accounting $24,067 $20,631 $12,105 $10,675 Miscellaneous and Other $10,438 $7,466 $9,378 $9,079 Office Expense $85,662 $106,542 $97,542 $97,171 Operating Supplies $24,691 $25,718 $22,841 $23,267 Other insurance-Medical $365,660 " '$395,721 $398,910 $407,124 Other Insurance $376,781 $429,854 $428,510 $437,946 Other Taxes $27,283 _ .�_W,098 $62,408 $42,259 Outside Services $36,744 $31,479 $18,572 $19,878 Public Relations and Promotion $6,613 $13,332 $5.265 $4,928 Permits $8,302 $8,283 $9,739 $10,041 Postage $20,201 $17,524 $8,760 $8,417 Rent $18,235 $14,420 $20,425 $18,446 Telephone $28,170 $30,182 $29,483 $28,954 Tires(included in repairs) $53,896 $43,774 $54,431 $56,496 Travel $7,652 $7,546 $5,463 - " $6,192 Truck Insurance Truck License $41,487 •$48,626 $5 ,074 ,$54,053 �! Truck Repairs $125,811 $130,941 $134,099 - $143,285 Utilities $28,653 $26,735 $30,656 $31,589 51. Total Other Gen/Admin Costs $1,940,934 $2,117,887 $2,152,204 $2,338,210 52. Total Tipping Fees $1,247,98911 $1,274,911 $1,286,229 $1,334,429 53. Total Franchise Fee $672,084 $714,718 $736,098 $751,104 54. Total AB 939/Regulatory Fees $107,580 $122,028 $124,272 $128,000 55. Total Lease Pmt to Afrd Co.'s $0 $0 $0 $0 56. Total Cost $6,234388 1 $6,619,520 $6,848,567 $7,345,991 Fiscal Year: 1-1-2007 to 12-31-2007 AQ. 4 of 6 '�S Sm fxi.Gbw,C. ATTAC�1F�E9 2 Base Year Rate Adjustment Application - a. Base Year Revenue Offset Summary For Information Purposes Only Section VII-Revenue Offsets Description of RevenueOverau Franchise Refuse Collection Non-franchise Total Total SLQ City SLO County Rural Total 11 — Residential Revenue (without increase in Base Year) 57. Single Family Residential $2 385,531 $2,385,531 $2,155,566 $229,96511 Multiunit Residential Dumpster 58. Number of Accounts 371 371 371 59. Revenues L $1,008,888 $1,008,888 $1,008,888 60. Less Allowance for Uncollectable 11 ..$011 $0 61. Total Residential Revenue $3,394,419 $3,394,419 $3,164,454 $229,965 $0 $0 Non-residential Revenue(without increase in Base Year) o Account Type Non-residential Can 62. Number of Accounts IEOF-�sIO5O 162 63. Revenues $105,240. . Non-residential Wastewheeler 64. Number of Accounts ,248 431 431 407 24 $3 65. Revenues 13,248 $313 $306,8041 $6,444 Non-residential Dumpster 66. Number of Accounts 1,041 1,027 785 242 1 14 67. Revenues $3,521,450 $2,929,059 11 $2,345,920 $583,139 $592,391 68. Less:Allowance for Uncollectible Non-residential Accounts $0 11 $0 69. Total Non-residential Revenue $3,939,938 11 $3,347,54711 $2,757,964 $589,583 $0 $592,391 74. Interest on Investments $16,107 $16,1.0 7 1 „ . 75. Other Income $0 76. ' Total Revenue Offsets 11 $'7,350,464 $6,741,96:6]1 $5,922,418 11 $819,548 $0 $608,498 Fiscal Year: 1-12007 to 12-312007 Pg. 5 of 6 >m� ATTACHMENT 2 Base Year Rate Adjustment Application Operating Information Historical Current Projected _ Percent Percent Percent Percent 2004 Change 2005 Ch ge .2006 ChB Year ange 2007 Change 200g :$eeL10II IX. .0�..CI'd...��8t8�.,r.-:,,• z.,w,.=.y Residential Garbage per ton landfill cost 77. Accounts EO,761 0.790 10,839 0.890 10,928 0.890 11,018 0.990 11,118 78. Routes 0.0% 3 0.0% 3 0.090 3 0.0% 3 79. Tons Collected 0.19a 9,725 -0.3% 9,700 0.390 9,725 0.390 9,150 $29.25 $ 284,456 80. Direct Labor Hours 0.0%1 8,320 1 0.0%1 8,320 1 6.0%j 8,320 . 0.096 8,320 Non-residential Garbage 80. Accounts 1,965 0.1mE1,967 1 0.6%1 1,979 1 1.3%1 2,005 1 1.0%1 2,025 81. Routes 7 0.0% 7 0.0% 7. 0.0% 7 10.0%1 7 Tons Collected 29,575 2.6961 30, 75 0.1% 30.200 1 1.2%1 30,550 1 1.1%1 30,900 $29.25 $ 893,588 82. Direct Labor Hours 18,720 0.0% 18,720 1 0.0%1 18,720 1 0.0%1 18,720 1 0.0%1 18,720 11 Recyclable Materials- Commingled Recycling 83. Accounts 12,726 1 0.6%1 12,806 1 0.8% 12,907 1 0.9%1 13,023 1 0.990 13,143 Routes 4 0.0% 4 0.090 4 0.090 4 0.0% 4 Tons Collected 9,301 3.1%1 9,587 0.390 9,616 1.6%1 9,773 -0.4% 9,733 $ 5.00 $ 48,865 84. Direct Labor Hours 14,560 O.Al 14,560 0.0%1 14,560 0.090 14,560 0.0%1 14,560 11 85. Recyclable Materials- Greenwaste Collection Accounts 10,761 0.790 10,839 0.890 10,928 0.8Ya .11,018 0.996 11,118 Ij Routes 3 0.0% 3 0.0% 3 _ 0.0� 3 0.0% 3 Tons Collected 4,570 9.29a 4,990 1.2% 5,050 6.590 5,376 0.8% 5,421 $20.00 $ 107,520 Direct Labor Hours 8,320 0.0%1 8,320 0.0% 8,320 1 0.0%1 8,320 0.0%1 8,320 $ 1,334,429 Fiscal Year- 1-1-2007 to 12-312007 Pg.6 of 6 ATTACHMENT 3 SOLID WASTE FEE SURVEY Section I-Introduction 1. Name of City/County Napa City Davis Salinas 2. Contact Person Tracey Beaver Ken Doug Kenyon 3. Title of Contact Person Office Manager Controller General Manager 4. Telephone Number 707-255-5200 530-756-4646 831-755-3842 5. Date Contacted 1 11/7/2006 1 11/7/2006 1 11/15/2006 Section 11-General Information 6. Are residential curbside collection and disposal Municipality Municipality Municipality services provided by the or or or municipality or private Private Private Private contractor? 7. Is a franchise for refuse collection granted to the Yes or NO Yes or NO Yes or NO hauler? 8. Is a franchise for recyclable material collection granted Yes or NO Yes or NO Yes or NO to the hauler? 9. Is there a franchise fee? WASTE MGT 7-8% 14% If so, how much is it? DECLINED 10. What is the franchise $56.00 $36.00 $ 50.50 hauler's disposal cost per transfer station ton? 11. Who bills the customer? Municipality Municipality Municipality or or or Private Private Private Section III-Residential Service 12. Are residential rates Yes Yes Yes regulated? 13. What is the monthly charge 1 can 20g al$15.58 month $12.89 month for residential service? 2 can 35 al$19.53 month $17.48 month 3 can 65 al$24.54 month 95 al$27.22 month $23.16 month 95 al$46.08 month 14. What is the charge for additional cans? $4.90/13AG .$25.00 MINIMUM $4.60/BAG l� ATTACHMENT 3 SOLID WASTE FEE SURVEY Section III—Residential Service continued 15. Is there a separate charge No No No for yard waste collection? 5x5x5 loose pile 16. Are there any citywide 1 day per year 4day period bulky items 2x a year drop off cleanup days provided at drop off location taken to yard location no additional charge by the hauler? 17. Does your community have Yes Yes Yes a curbside recycling program? 18. Is there an additional charge Included Included Included to residents for this program, or is it included in the monthly charge for solid waste collection? 19. If separate,what is the charge? Section IV-Non Residential Service 20. Are non-residential rates Yes Yes Yes regulated? 21. Provide the monthly fee for the following services, assuming pick up is one time per week: 1 cubic yard $79.17 $164.69 1.5 cubic yards $236.98 $108.11 2 cubic yards $304.67 $132.08 $191.90 3 cubic yards $446.73 $196.46 $222.31 4 cubic yards $580.00 $257.55 $251.29 6 cubic yards $863.26 $376.42 $304.53 22. Effective period of rates quoted Jan-06 Sep-06 Jul-06 23. Is the downtown area allowed to put out bags or YES CORE-NO NO are they required to have OTHERS-YES cans or toters? ATTACHMENT 3 SOLID WASTE FEE SURVEY Section I-Introduction 1. Name of City/County Atascadero Paso Robles Arroyo Grande 2. Contact Person Donna Cindy Rebecca 3. Title of Contact Person 4. Telephone Number 466-3636 238-2381 489-4246 5. Date Contacted 11/2/2006 1 1117/2006 1 11/7/2006 Section 11-General Information 6. Are residential curbside collection and disposal Municipality Municipality Municipality services provided by the or or or municipality or private Private Private Private contractor? 7. Is a franchise for refuse collection granted to the Yes or NO Yes or NO Yes or NO hauler? 8. Is a franchise for recyclable material collection granted Yes or NO Yes or NO Yes or NO to the hauler? 9. Is there a franchise fee? 5% 9.37% 10% If so, how much is it? 10. What is the franchise hauler's disposal cost per $ 39.00 $ 38:85 $ 29.25 ton? 11. Who bills the customer? Municipality Municipality Municipality or or or Private Private Private Section III—Residential Service 12. Are residential rates Yes Yes Yes regulated? 13. What is the monthly charge 1 can $18.25 month 40 al$24.92 month $14.28 month for residential service? 2 can $32.30 month 60 al$32.68 month $18.57 month 3 can $41.80 month 90 al$36.07 month $22.86 month 14. What is the charge for $5.05 $2.85 purchase a tag $4.01 additional cans? �`za ATTACHMENT 3 SOLID WASTE FEE SURVEY Section 111-Residential Service continued 15. Is there a separate charge No No No for yard waste collection? 16. Are there any citywide Yes 1 x year 2 yards, 2x year 2 yards cleanup days provided at 2x year location site \ no additional charge by the hauler? 17. Does your comm unity have Yes - Yes Yes a curbside recycling program? 18. Is there an additional charge Included Included included to residents for this program, or is it included.in the monthly charge for solid waste collection? 19. If separate,what is the charge? Section IV-Non Residential Service 20. Are non-residential rates Yes Yes Yes regulated? 21. Provide the monthly fee for the following services, assuming pick up is one time per week: 1 cubic yard $70.56 1.5 cubic yards $90.81 $80.09 2 cubic yards $106.42 $89.63 3 cubic yards $148.60 $137.64 $106.76 4 cubic yards 1 $180.34 $199.99 $133.47 6 cubic yards 22. Effective period of - rates quoted Jan-06 Sep-06 May-06 23. Is the downtown area noliags need to use allowed to put out bags or yes can or toter yes are they required to have cans or toters? ATTACHMENT 3 SOLID WASTE FEE SURVE=Y Section I-Introduction 1. Name of City/County Monterey Grover Beach, Ni omo 2. Contact Person Tom Parola DiDi Di Di 3. Title of Contact Person Operation Manager Office Manager Office Manag er 4. Telephone Number 88&67876798 __ 489-4246 489-4246 5'. Date Contacted 11/15/2006 11/14/2006 1 11/14/2006 Section 11—Generallnf6rmation 6. Are residential curbside collection and disposal Municipality Municipality Municipality services provided by the or or or municipality or private Private Private Private contractor? 7. Is a franchise for refuse collection granted to the Yes or NO Yes or NO Yes or NO hauler? 8. Is a franchise for recyclable material collection granted Yes or NO Yes or NO Yes or NO to the hauler? 9. Is there a franchise fee? 10% 10% 10% If so, how much is it? 10. What is the franchise hauler's disposal cost per $ 50.50 $ 29.25 $ 29.25 ton? 11. Who bills the customer? Municipality Municipality Municipality or or or Private Private Private Section III—Residential Service 12. Are residential rates Yes Yes Yes regulated? 13. What is the monthly charge 1 can $12.94 month $15.00 month for residential service? 2 can 40 al$15.92 month $17.50 month $21.49 month 3 can $22.05 month $28.16 month 14. What is the charge for additional cans? $3.74. - $4.04 $ 3.90 ATTACHMENT 3 SOLID WASTE FEE SURVEY Section III—Residential Service continued 15. Is there a separate charge No No No for yard waste collection? 16. Are there any citywide 3 x a yr large item Yes 1 x year Yes 1 x year cleanup days provided at by appointment curb curb no additional charge by the hauler? 17. Does your community have Yes Yes Yes a curbside recycling program? 18. Is there an additional charge Included Included Included to residents for this program, or is it included in the monthly charge for solid waste collection? 19. If separate,what is the charge? Section IV-Non Residential Service 20. Are non-residential rates Yes Yes Yes regulated? 21. Provide the monthly fee for the following services, assuming pick up is one time per week: 1 cubic yard $60.49 $57.50 1.5 cubic yards $69.80 $68.66 2 cubic yards $124.75 $79.11 $74.28 3 cubic yards $187.29 $94.61 $88.29 4 cubic yards $230.60 $122.53 1 $127,52 6 cubic yards $312,27 22. Effective period of rates quoted Sep-041 Ma -06 Dec-05 23. Is the downtown area Yes Yes Yes allowed to put out bags or are they required to have cans ortoters? I � I ATTACHMENT 3 SOLID WASTE FEE SURVEY Section 1-Introduction 1. Name of City/County Redding Ventura Bakersfield 2. Contact Person Danielle Tom Li is 3. Title of Contact Person Contract Manager Customer Service 4. Telephone Number 530-224-6201_ 805-647-1414 661-326-3114 5. .Date Contacted 11/7/2006 11/7/2006 11/2/2006 Section ll-General Information 6. Are residential curbside collection and disposal Municipality Municipality Municipality services provided by the or or or municipality or private Private Private Private contractor? 7. Is a franchise for refuse collection granted to the Yes or NO Yes or NO Yes or NO hauler? 8. Is a franchise for recyclable material collection granted Yes or NO Yes or NO Yes or NO to the hauler? 9. Is there a franchise fee? 0% no response no response If so,how much is.it? 10. What is the franchise hauler's disposal cost per $ 32.00 $ 25.31 $ 36.00 ton? 11. Who bills the customer? Municipality Municipality Municipality or or or Private Private Private Section III--Residential Service 12. Are residential rates Yes Yes Yes regulated? 13. What is the monthly charge 1 can $21.38 month $169.08 billed to taxes for residential service? 2 can $17.22 month $23.55 month July-July earl 3 can $18.22 month $27.15 month 14. What is the charge for No extra no response $4.53 additional cans? ��z y ATTACHMENT SOLID WASTE FEE SURVEY Section III-Residential Service continued 15. Is there a separate charge No No No for yard waste collection? 16. Are there any citywide Adopt a street with drop i x year bulky item 2 drop off events- clean-up ventscleanup days provided at box.With 1 free coupon pick up no charge per year no additional charge by to Landfill the hauler? 17. Does your community have Yes Yes Yes a curbside recycling program? 18. Is there an additional charge Included Included Yes to residents for this program, or is it included in the monthly charge for solid waste collection? 19. If separate,what is the $20.00 quarterly or charge? $80.00 yearl Section IV-Non Residential Service 20. Are non-residential rates Yes Yes Yes regulated? 21. Provide the monthly fee for the following services, assuming pick up is one time per week: 1 cubic yard 1.5 cubic yards $60.51 $93.83 $84.47 2 cubic yards $71.71 $101.88 $106.61 3 cubic yards $99.89 $135.35 $132.85 4 cubic yams $122.95 6 cubic yards $172,87 22. Effective period of rates quoted Jul-06 Jan-06 Jul-06 23. Is the downtown area Toter only Toter only Toter only allowed to put out bags or are they required to have cans or toters? �-mss ATTACHMENT SOLID WASTE FEE SURVEY Section 1-Introduction I. Name of City/County Oxnard Greenfield 2. Contact Person Carla Tom Parola 3. Title of Contact Person Operations Manager 4. Telephone Number 805-385-8060 888-678-6798 5. Date Contacted 11/14/2006 11/15/2006 Section ll"06neral Information 6. Are residential curbside collection and disposal Municipality Municipality Municipality services provided by the or or or municipality or private Private Private Private contractor? 7. Is a franchise for refuse collection granted to the Yes or NO Yes or NO Yes or NO hauler? 8. Is a franchise for recyclable material collection granted Yes or NO Yes or NO Yes or NO to the hauler? 9. Is there a franchise fee? NO 20% If so, how much is it? 10. What is the franchise hauler's disposal cost per $ 42.00 $ 50.50 ton? 11. Who bills the customer? Municipality M_unicipality Municipality or or or Private Private Private Section III—Residential.Servioe 12. Are residential rates Yes Yes regulated? 13. What is the monthly charge 1 can 48 al$19.71 month for residential service? 2 can 70 al$20.07 month 64 al$31.17 month 3 can 95 al$24.16 month 96 al$42.66 month 14. What is the charge for Add a can for $13.80 additional cans? $10.00 month - ATTACHN.MIT 3 SOLID WASTE FEE SURVEY Section 116Residential Service continued 15. Is there a separate charge No No for yard waste collection? 16. Are there any citywide 30 yard drop box 1 x year drop off location cleanup days provided at neighborhood areas no additional charge by the hauler? 17. Does your community have Yes Yes a curbside recycling program? 18. Is there an additional charge Included Included to residents for this program, or is it included in the monthly charge for solid waste collection? 19. If separate,what is the charge? Section N-Non Residential Service 20. Are non-residential rates Yes Yes regulated? 21. Provide the monthly fee for the following services, assuming pick up is one time per week: 1 cubic yard $118.38 1.5 cubic yards 2 cubic yards $102.19 $191.71 3 cubic yards $278.03 4 cubic yards $179.27 $362.79 6 cubic yards $528.72 22. Effective period of rates quoted Sep-06 Jul-06 23. Is the downtown area Toter only allowed to put out bags or no response are they required to have cans or toters?