HomeMy WebLinkAbout11/20/2001, PH 3 - SAN LUIS GARBAGE COMPANY INTERIM YEAR SOLID WASTE RATE ADJUSTMENT APPLICATION. counci L M tiur v
j Acjcnc)A RepoRt JWm Num1w P.
CITY OF SAN, LUIS OBISPO
FROM: John Moss, Utilities Director
911y-
Prepared By: Ron Munds,Utilities Conservation Coordinator
SUBJECT: SAN LUIS GARBAGE COMPANY INTERIM YEAR SOLID WASTE
RATE ADJUSTMENT APPLICATION.
CAO RECOMMENDATION
Adopt a resolution increasing solid waste rates by 3.92% for interim year 2002 to become
effective on January 1, 2002.
DISCUSSION
Background
On October 3, 2001 San Luis Garbage Company (SLG) submitted to the City interim year solid
waste rate adjustment applications (Attachment 2) for the year 2002 along with the required
audited financial statements. The City's Rate Setting Manual For Setting Integrated Solid Waste
Rates, adopted by the Council in 1994, provides a process and schedule for rate application
review and binds the contractor and the City to a method of determining revenue adequacy.
Under this methodology, base year applications, like the one brought to Council in November
2000, 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, three of the cycle, and are intended to adjust only for the prior year's cost-
of-living increase, and any changes to the landfill tipping costs.
Kev Assumptions in 2001 Application
■ Tipping fees
SLG underestimated- the tipping fee cost in the 2001 Base Year Application for 2002. The
projected fees in the Base Year Application were $1,187,105 compared to the current estimated
fees for 2002 of$1,249,599 based on the actual disposal numbers from the years 1999 and 2000.
The increase can be attributed to an in in green waste tons and refuse generated by the
commercial sector. This increased the projected pass through costs by$62,494 for 2002.
■ Consumer Price Index(CPI)
The figure used to factor inflation into increases in solid waste rates is the Consumer Price Index
for Urban Consumers. The previous twelve month CPI is used to determine the weighted
average change in controllable costs in the rate adjustment application being considered. The
CPI from July 2000 to July 2001 of 2.7% is used for the 2002 application.
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Council Agenda Report—Solid Waste Rate Adjustment
Page 2
• AB 939 Fee
A three percent increase in the AB 939 fee is included to reflect the inflationary and solid waste
program cost increases experienced by the City.
Staff has determined that the adoption of the 2002 rates as recommended will ensure SLG the
necessary operating revenues, including profit, within the prescribed levels set by the solid waste
rate setting policies. , .
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 3 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
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).
FISCAL IMPACT
The proposed rates are as follows:
Residential Solid Waste Services/Rates
Service Level Current Proposed
Service Rate Service Rate
Mini-can $5.84/month $6.07/month
(19 gallon)
Economy $9.34/month $9.71/month
32 gallon waste wheeler
Standard $18.67 month $19.42/month
64 gallon waste wheeler
Premium $28.01/month $29.13/month
96 gallon waste wheeler
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I
RESOLUTION NO. (2001 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 2002 interim 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. 9122 (2000 series) is hereby rescinded on midnight,
December 31, 2001.
SECTION 2. The rates set forth in Exhibit A shall be effective January 1, 2002.
On motion of , seconded by , and
on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted on this day of , 2001.
ATTEST: Mayor Allen Settle
Lee Price, City Clerk
APPROVED AS TO FORM:
tyMomJe y J gensen
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Council Agenda Report—Solid Waste Rate Adjustment
Page 3
Commercial Solid Waste Services
As identified in Exhibit A to Attachment 1.
ATTACHMENTS
1. Resolution and Exhibit A-Rate Schedule for Integrated Solid Waste Activities
2. 2002 Interim Year Rate Application
3. Survey of Other Cities- Solid Waste Rate
Exhibit A
CITY OF SAN LUIS OBISPO
3.92% AVERAGE ACROSS THE BOARD INCREASE
FOR INTEGRATED SOLID WASTE ACTIVITIES
EFFECTIVE 1-1-2002
MULTI-UNIT RESIDENTIAL DUMPSTER CONTAINERS(PER MONTH)
Size of COLLECTIONS PER WEEK
container
(cubic yards) 1 2 3 4 5 6 7
1 $70.021 $101.971 $133.90 $165.84 $197.77 $229.701 $261.641
1.5 $81.081 _ $125.291 $169.51 $213.73 $257.96 $302.171 $346.401
2 $92.131 $147.401 $202.68 $257.95 $313.23 $368.48 $423.75
3 $114.231 $191.631 $269.011 $346.40 $423.781 $501.17 $578.56
4 $136.341 $237.071 $337.81 $438.54 $539.27 $640.02 $740.76
6 $180.541 $326.731 $472.921 $619.101 $765.301 $911.48 $1,057.68
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)
1 number COLLECTIONS PER WEEK
I
of
cans 1 2 3 4 5 6 7
1 1 $17.211 $27.02 $36.84 $46.67 $56.48 $66.30 $76.12
2 I $22.11 $34.40 $46.691 $58.96 $71.25 $83.54 $95.811
3 $27.03 $41.79 $56.52 $71.28 $86.02 $100.77 $115.52
4 $31.95 $49.15 $66.341 $83.551 $100.751 $117.951 $135.151
5 $36.86 $56.511 $76.171 $95.811 $115.481 $135.13 _ $154.78
6 $41.791 $63.881 $85.991 $108.101 $130.191 $152.31 $174.411
7 $46.70 $71.271 $95.82 $120.40 $144.97 $169.54 $194.11
8 $51.621 $78.651 $105.68 $132.71 $159.75 $186.78 $213.811
9 $56.52 $86.01 $115.50 $144.98 $174.46 $203.94 $233.44
Maximum volume and weight per garbage can: 35 gallons and 80 pounds
Additional charge per can per collection: $5.28
Optional Waste Wheeler rental if requestedF $0.00 Per month for 32 gallon&64 gallon size
Sunday service 1__ $43.00 per month in addition to garbage service monthly cost
Proposed Rate Schedule for Integrated Solid Waste Services effective 1-1-2002
Exhibit A
CITY OF SAN LUIS OBISPO
COMMERCIAL WASTE WHEELER CONTAINERS(PER MONTH)
number COLLECTIONS PER WEEK 1
of _
containers 1 2 3 4 5 6 7 1
I
1 $30.661 $49.09 $67.52 $85.95 $104.39 $122.81 $141.251
2 $50.26 $77.26 $104.29 $131.31 $158.33 $185.35 $212.381
3 $69.861 $105.47 $141.10 $176.72 $212.34 $247.95 $283.58
4 $89.45 $133.67 $177.90 $222.11 $266.34 $310.55 $354.781
5 $109.05 $161.88 $214.70 $267.52 $320.34 $373.16 $425.981
6 $128.65 $190.08 $251:501 $312.91 $374.33 $435.77 $497.181
7 _ $148.26 $218.27 $288.29 $358.32 $428.34 $498.36 $568.38
8 $167.851 $246.48 $325.10 $403.72 $482.34 $560.96 $639.58
9 1 $187.46 $274.67 $361.88 $449.09 $536.30 $623.50 $710.711
COMMERCIAL DUMPSTER CONTAINERS(PER MONTH)
Size of
container COLLECTIONS PER WEEK
�(cubic yards) 1 _ 2 _ 3 4 5 6 7
1 1 $61.42.1 $85.99 $110.56 $135.13 .$159.68 $184.26 $208.831
1.5 $68.78 $100.72 $132.65 $164.60 $196.53 $228.47 $260.41
2 $76.161 $114.24 $152.33 $190.411 $228.50 $266.58 1304.661
3 $90.89 $143.71 $196.53 $249.35 $302.17 $354.99 $407.81
4 $105.63 $174.42 $243.20 $312.00 $380.78 $449.57 $518.361
6 $135.10 $232.16 $329.21 $426.26 . $523.31 $620.36 $717.42
8 $164.57 $289.88 $415.18 $540.49 $665.79 $791.10 $916.401
The rates shown above include the monthly container rental fee and are the same for bins
and garwoods, when volume is identical.
Sunday service $43.00 per month iri:addition to garbage service monthly cost
UNSCHEDULED EXTRA COLLECTIONS FOR
COMMERCIAL CUSTOMERS AND
MULTI-UNIT RESIDENTIAL DUMPSTER CUSTOMERS
$28.26 1 cubic yard (minimum charge)
$36.85 2 cubic yards
$45.45 3 cubic yards
r
$54.051 4 cubic yards
Proposed Rate Schedule for Integrated Solid Waste Services effective.1-1-2002
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- �CITY OF SAN LUIS OBISPO Exhibit
SINGLE FAMILY and MULTI-UNIT RESIDENTIAL(4 units or less)
VOLUME-BASED RATES
MINI-CAN SERVICE
$6.07 per month for one 19 gallon wastewheeler container collected once each week .
ECONOMY RATE
$9.71 per month for one 32 gallon wastewheeler container collected once each week
STANDARD RATE
$19.42 per month for one 64 gallon wastewheeler container collected once each week
PREMIUM RATE
$29.13 per month for one 96 gallon wastewheeler container collected once each week
PREMIUM PLUS RATE
$8.84 per month for additional 32 gallon wastewheeler container collected once each week
$17.69 per month for additional 64 gallon wastewheeler container collected once each week
$26.53 per month for additional 96 gallon wastewheeler container collected once each week
SERVICE AWAY FROM THE STREET CURB
$6.62 additional per month.per can or container
LATE MAKEUP COLLECTIONS WITH GARBAGE TRUCK(phone.call required)
$9.83 per trip plus charges identified above for any extra containers or equivalent volume
$4.68 additional charge per 33 gallon can or equivalent volume per collection
EXTRA COLLECTIONS WITH PICKUP OR FLATBED TRUCK(phone call required)
$14.75 per trip plus:
$4.68 1 per garbage can or equivalent volume (amounts over six cans by quotation)
$3.68 1 per white good article (once a month)
$3.68 per piece of furniture
$3.68 per mattress or boxspring
i
Proposed Rate Schedule for Integrated Solid Waste Services effective 1-1-2002
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Exhibit
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 $21.50 $27.64 $33.78 $39.92 $46.07 $52.211
1.5 INCLUDED $25.18 $33.16 $41.14 $49.13 $57.11 $65.11
2 INCLUDED I $28.56 $38.08 $47.61 $57.12 $66.64 $76.171
3 $22.731 $35.93 $49.13 $62.34 $75.55 $88.75 $101.95
4 $26.41 --$43.621 $60.80 $78.00 $95.19 $112.40 $129.59
6 $33.77 F $58.04 $82.30 $106.57 $130.84 $155.09 $179.36
8 $41.14 1 $72.46 $103.81 $135.1-3 $166.451 $197.78 $229.101
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 $41,.57 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 1-1-2002
e
Attachment 2
City or San Luis Obispo
Interim Year Rate Adjustment Application
t
Requested Increase
1. Rate Increase Requested
Rate.Schedule
Current increased Adjustment New
Rate Schedule Rate Rate (a) Rate
Single Family Residential
2. Mini-Can Service $5.84 $6.07 F $6.07
3. Economy Service $9.34 $9.71 1 $9.71
4. Standard Service $18.67 $19.40 $0.02 $19.42
5. Premium Service $28.01 $29.11 $0.02 $29.13
5.b. Multiunit Residential and Non-residential Rate increases of
will be applied to all rates in each structure
with each rate rounded up to the nearest$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 City of San Luis Obispo.
Name:TOM MARTIN Title: Controller
Signature Date: 10/22/2001
Fiscal Year: 1-1-2002 to 12-31-2002 _ Pg. 1 of 2
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~ Attachment 2
Ci,y of San Luu Obispo SEPTEMBER 2001
_ -- - Interim Year Rate Adjustment Application
Financial Information
Section I-Base Year Costs
Base Year Controllable Costs
6. Total Allowable Costs M$0
7. Plus Allowable Operating Profit8. Plus Lease Pa ents to Affiliated Com anies
9. Equals Total Controllable costs $4 242 878 72.9%
Base Year Pass Through Costs
10. Tipping Fees $1152 529
Franchise Fees $325 634
11. Plus AB 939 and Regulatory Fees 7 $98,4521
12. Equals Total Pass Through Costs $1 576 615 27.1%
13. Base Year Revenue Requirements(less Franchise Fee) $5,819,493]
100%
Section II-Changes in Costs
Change in Controllable Cost
14. Historical Percentage Change in Consumer Price Index(July 200 1) 2,7%
Change in Pass Through Cost
15. Base Year Tipping Fees $1 l52 529
Base Year Franchise Fees $325 634
16. Plus Base Year AB939 Fees $98 452
17. Equals Total Base Year Pass Through Costs $l 576 615
18 Projected Interim Year 2002 Tipping Fees $1 249 584
Projected Interim Year 2002 Franchise Fees $325 634
19. Projected Interim Year 2002 AB939 Fees $101,400
20. Equals Total Projected Interim Year Pass Through costs $1676 618
21. Projected Percentage Change in Pass Through Costs
Section III-Calculation of Percent Change in Rates
Weighted Change in Controllable Costs
22. Controllable Costs as a Percent of Base Year Revenue Requirements 72.9%',
23. Multiplied b Percent change in CPI 2 7%
24. Equals Weighted Percent Change in Controllable Costs 1 1,970/7.
Weighted Change in Pass Through Costs
25. Pass Through Costs as a Percent of Base Yr Revenue Requirements _ 27.1%
26. Multiplied b Percent Chane in Pass Through Costs 6.34%
27. Equals Weighted Percent Change in Pass Through Costs 1,72%
Total Change
28. Total Percent Change in Cost(Line 24+Line 27+Line 28) 3,69%
29. Divided by Adjustment for Franchise Fee(1-6.0 percent) 94.0% L
30. Equals Percent change in Existing Rates 1 g 92%
Fiscal Year: 1-1-2002 to 12-31-2002 Page 2 of 2
1v
Attachment 3
City of San Luis Obispo
Solid Waste Fee Survey
Section 1 — Introduction
1. Name of City/County PiSM 9-VI1 Baich Santa Yma Santa Bmi m
2. Contact PersonSandy JcMde Darrell
3, Title of Contact Person a starer Rep. . REftrering Aid Rapresaitative
4. Telephone Number 489-4246 925-0951 965-5248
5. Date Contacted 10-22-01. 10-22-01 10-22-01
Section II —General Information
6. Are residential curbside
collection and disposal
services provided by the
municipalior private Private Cit, prix; te
contractor?
7. Is a franchise for refuse
collection granted to the Yes No Yes
hauler?
6. Is a franchise for recyclable Yes
material collection granted to Yes Nb
the hauler?
P. Is Ihere a franchise fee? 1`b 87.
11 so,how much is It? L�
10. What is the franchise
hauler's disposal cost per `i� 30.65 48.00
` ton?
I 11. Who bilis customers? Private cid, Cit,
Section III —Aesidential Service
12. Are residential rates
regulated? Yes Yes Yes
13. What is the monthly charge 32 10.35 60 20.10 CAIS
tot residential service? 64 20.70 90 23.20 1 18.07
2 21.74
% 31.05
3 23.77
LL
14. How many cans are picked
YIA up at this charge? VIA 1�1 — -I,J
15. What is the charge for 3.36 'kip Charge 11.20 4.80
additional cans?
Fiscal Year. Page 1 o12
i
. 3-11
- Attachment 3
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 yard waste Yes
17. Are there any City-wide
clean-up days provided at Yes 2 free trips to Yes
no additional charge by fill
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 Nb N:)
program,or is it included in
the monthly charge for
solid waste collection?
20. If separate,what is the
charge per month? Now Now Nine
Section V -- Non-residential Service
21. 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 56.91 None None
24. 1 1i2 cubic yards 64.60 None
25. 2 cubic yards 72.25) 125.53 75.64
26. 3 cubic yards 143.51 226.32 2 times a w A only
27. 6 cubic yards 1K Nage ncm Ncne
28. Effective period of
ratesquoted: 11-01-01 1-1-01 2001
Fiscal Year.- Page 2 of 2
�is
Attachment 3
City of San Luis Obispo
Solid Waste Fee Survey
Secllori I -Introduction
1. Name of City/County Atascadero Paso Robles San Miguel
2. Contact Person Shawnee Kathy Linda
3. Title of Contact Person Customer Rep Office Manager Owner
4. Telephone Number 466-3636 238-2381 467-9283
5. Date Contacted 10-22-01 10-22-01 1OP22-01
Section II -General Information
6. Are residential curbside
collection and disposal
services provided by the
municipality or private Private Private Private
contractor?
7. Is a franchise for refuse
collection granted to the Yes Yes Yes
hauler?
S. Is a Iranchise for recyclable
material collection granted to Yes Yes Yes
the hauler?
P. Is there a franchise lee? Not ]mown 3% 10%
Il so, how much is it?
10. What is the franchise 35.84
hauler's disposal cost per 45.00
ton?
11. Who bills customers? Private Private Private
Section III- Nesidential Serviee
12. Are residential rates
regulated? Yes Yes Yes
13. What is the monthly charge
32 2 3.80 32 ' 13.84 35 gallonsto
for residential service? 64 45.20 64 18.82 4 cans 23.8
96 59.90 96 23.47
14. How many cans are picked
up at this charge? 1 3 up to 4
15. What is the charge lot 4.20 buy a tag for 2.70
additional cans? 2.00 for xtra c
Fiscal Year. Page 1 of 2
I _
I
313
-
Attachment 3
City of San Luis Obispo
Solid Waste Fee Survey
Section 111 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
no additional charge by Yes Yes No
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. It separate,what is the None None None
charge per month?
Section V --Non-residential Service
21. Are non-residential rales yes Yes
regulated? Yes
22. Provide the monthly fee for
the following services,
assuming pick-up is one
time-per week:
23. t cubic yard 61..70 52.14 66.90
24. 1 1l2 cubic yards 72.90. 59.16 74..75
25. 2 cubic yards 83.30 69:60 82.15
26. 3 cubic yards 102.65 90.48 109.85
27. 6 cubic yards 159.40 None 219.75
28. Effective period of
ratesquoted: 5-1-01 1-01 5-01
Fiscal Year: Page 2 o/2
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Attachment 3
City of San Luis Obispo
Solid Waste Fee Survey
Section I Introduction
1. Name of City/County Bakersfield Napa. .
2. Contact Person Janet Shannon
3. Title of Contact Person Customer Rep Customer Rep
a. Telephone Number 616.326.3114 707.255.5200 X501
5. Date Contacted 10-22-01 10-22-01
Section II —General Information
6. Are residential curbside
collection and disposal
services provided by the Cit Private
municipality or private 5
contractor?
7. Is a franchise for refuse
collection granted to the No Yes
hauler?
S. Is a franchise for recyclable No Yes
material collection granted to
the hauler?
9. Is there a franchise fee? Unknown Unknown
If.so, how much Is it?
10. What is the franchise
hauler's disposal cost per Unknown Unknown
ton?
11. Who bills customers? City Private "
Section III —Residential Service
12. Are residential rates
regulated? Yes Yes
13. What is the monthly charge 32 15.00 35 19.53
for residential service? 64 19.46 65 23.04
95 46.08
14. How many cans are picked 1
up at this charge? 1-1
15. What is the charge for 3.95 4.90
additional cans?
Fiscal Year. Page 10f2
Attachment 3
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
17. Are there any City-wide Drop off 4 times Free drop off
clean-up days provided at ]? p
no additional charge by yearly large ite.
the hauler?
18. Does your community have
a curbside recycling Green Waste Only yes
program?
19. Is there an additional
charge to residents for this No No
program, or is it included in
the monthly charge for
solid waste collection?
20. If separate,what is the None None
charge per month?
Section V Non-residential Service
21. Are non-residential rates
regulated? Yes Yes
22. Provide the monthly fee for
the following services,
assuming pick-up is one
time-per week:
23. 1 cubic yard. 79.75 None
24. 1 1/2 cubic yards None 263.31
25. 2 cubic yards 100.77 338.52
26. 3 cubic yards 6.11 496.37
27. 6 cubic yards. None 959.18
28. Effective period of
ratesquoted: 2001-2002 10—01
Fiscal Year. Page 2 of 2