HomeMy WebLinkAboutRes 87-78 Refuse Rate Incresase 1987 -1988 MEMO
TO: CITY MANAGER, HONORABLE MAYOR AND MEMBERS OF THE CITY
COUNCIL
FROM: ASSISTANT CITY MANAGER
SUBJECT: REFUSE RATE INCREASE FOR 1987/1988
DATE : JULY 22, 1987
Recommendation :
That the City Council approve Resolution No. 87-78 granting Palm
Desert Disposal an Across the Board increase of 8. 8% in refuse
rates for both residential and commercial customers and a new
schedule (Attachment A ) of dump fee charges .
Background :
The Franchise Agreement between Palm Desert Disposal Company and
the City provides that a yearly request can be made by the
company for an increase in refuse rates . The Agreement provides
that "The contractor may petition the City for a rate adjustment
as a result of increases in contractor ' s cost of operations
within the City" . It also provides that the contractor shall
provide documentation relative to the average per unit cost of
service which may be tested and audited in order to make a
decision on the increase . Under the terms of the Agreement , if
the City and contractor cannot agree on the requested increase,
then the rate submitted to Council for approval shall be the
average of all rates for similar service being charged in the
Coachella Valley.
The company has submitted a request for an increase of 10 . 0% for
1987/ 1988 . This is based on their claim of increased cost of
16 . 7% for the year- ended March 31 , 1987 over the year-ended
March 31 , 1986 .
I sumbitted the company' s request to the City' s auditor for a
verification of costs . The auditor' s conclusion is that even
after excluding costs for franchise fees , managements fees ,
etc . , the company' s costs increased by 15 . 73% from one year to
the other . Over the same period of time , however , the company
on the average served more units which tempers the actual
amount of increase per unit . Accordingly, the City' s auditor
found that an increase of 8 . 81 % is warranted.
In addition to the rate increase, the company is requesting that
the City approve a new scP;ial cOkilllCT7ee&CII:Oiitcay the dump charges
APPROVED j DENIED
RECEIVED C._
MEETING ._ , __._.... _j
AYES: �_..
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NOE'S• UT/
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VERIFIED ;;, -_-..___ _ . . _.._.__.
Original on !/ F.1
MEMO - 7/22/87
REFUSE RATE INCREASE 1987-88
levied by the County . In January of this year the County
increased the dump fees by 25%. The new schedule of dump is to
cover this cost increase .
Carlos L . Ortega
RESOLUTION NO. 87-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, SETTING REFUSE COLLECTION SERVICE RATES WITHIN
THE CITY OF PALM DESERT AND RESCINDING RATES ESTAABLISHED UNDER
RESOLUTION NO. 86-71
WHEREAS, on the 10th day of September , I981 , the City of
Palm Desert , California , authorized an Exclusive Contract to
Perform Refuse Collection Services to Palm Desert Disposal ; and
WHEREAS, THEREFORE, BE IT RESOLVED by the City Council
of the City of Palm Desert that effective the 1st day of July,
1987 , Resolution No. 86-71 is hereby rescinded ; and
BE IT FURTHER RESOLVED that effective the 1st day of July,
1987 , the schedule of refuse collection service rates is hereby
amended to reflect the following :
1 . Individual Residential Charges
A. Once weekly pickup - 6 cans , bags or bundles
1 . Curb Service $5 . 90 per month
2 . Walk- In Service 7 . 72 per month
B. Each additional can :
1 . Curb Service 3 . 20 per month
2 . Walk- In Service 3 . 80 per month
Note : Walk- in service shall not exceed 60 feet from
curb . There shall be an additional charge
for distance beyond 60 feet as follows :
For each additional 20 feet or part thereof,
a charge of 62 cents per unit of 20 foot
distance shall be charged .
If the distance from the curb to the can is
90 feet , the charge will be $ 1 . 05 additional
per month .
2 . Multiple Dwellings :
A. Central one-stop location of trash :
Curb :
1 . First Unit $5 . 90 per month
CITY OF PALM DESERT
RESOLUTION NO. 87-
Page 2
Multiple Dwellings - ( Cont ' d)
2 . Each Additional Unit 3 . 20 per month
Walk- In :
1 . First Unit 7 . 70 per month
2 . Each Additional Unit 5 . 00 per month
B . Other than central location of trash :
Curb :
1 . First Unit 5 . 90 per month
2 . Each additional unit 3 . 80 per month
Walk- in :
1 . First Unit 7 . 70 per month
2 . Each additional unit 6 . 50 per month
3 . Mobile Home Parks
A . Central Building/Walk- In 6 . 90 per unit
Service
B. Central Building/Curb 4 . 90 per unit
Service
4 . Commercial Rates will be as follows :
Time Two Yard Three Yard Four Yard
Per Week Bin Bin Bin
1 34 . 40 42 . 90 57 . 40
2 57 . 40 70 . 40 87 . 40
3 80 . 50 99 . 20 119 . 50
4 103 . 30 124 . 60 151 . 60
5 126 . 30 153 . 50 183 . 80
6 172 . 20 180 . 60 211 . 20
CITY OF PALM DESERT
RESOLUTION NO. 87-
Page 3
Pickup 12 Yard 20 Yard 30 Yard 40 Yard
Per Week Dirt Box Dropoff Dropoff Dropoff
1 $58 . 50 $58 . 50 $79. 30 $93 . 90
No rental maintenance will be charged for the first
seven ( 7 ) days . The rate of $2 . 50 per day will be
charged after the seventh ( 7th ) day.
5 . Special Haul
$7 . 50 first fifteen minutes of loading time only and
$2 . 75 per each additional five minutes .
6. Bulky Household Items
Bulky household items that , because of their size or
weight ( such as furniture , T . V . ' s appliances , etc . )
cannot be collected on regular routes shall be collect-
ed based on the Special Haul rate .
7 . Start Fees
A $ 10 . 00 restart fee may be charged to all customers
who had prior service , discontinue same and then resume
service .
8. Unusual Conditions
For collections requiring special equipment or other-
wise not set forth in this Agreement , rates may be
charged as shall be agreed upon by the Contractor and
the customer .
BE IT FURTHER RESOLVED that a surcharge is hereby allowed to
cover the County of Riverside Waste Disposal gate fee ; and
1 . That Palm Desert Disposal shall notify their customers
that the surcharge is added to the basic service rate .
2 . That such a surcharge has been in effect since October
1 , 1987 .
3 . That Palm Desert Disposal shall cause to be prepared by
an independent audit firm within 60 days after March
31st of every year , a financial statement clearly
indicating the fees paid to the County of Riverside
pursuant to the waste disposal gate fee program and the
increased revenue received as a result of imposing the
surcharge .
CITY OF PALM DESERT
RESOLUTION NO. 87-
Page 4
4 . That the surcharge he adjusted after the audit report
is furnished to the City according to the amount of
revenue generated as compared to the actual cost of
disposal plus 10% for an administrative overhead
allowance . Any audit- identified surplus shall be used
as a credit for the ensuing fiscal year surcharge
revenue account . The City Manager is hereby authorized
to negotiate a fair surcharge based on the information
provided .
5 . That the City of Palm Desert shall not include revenue
received from the surcharge in gross receipt subject to
franchise fees .
PASSED, APPROVED and ADOPTED by the City Council of the City
of Palm Desert , California , on this 23rd day of July, 1987 , by
the following vote , to wit :
AYES :
NOES :
ABSENT :
ABSTAIN :
RICHARD S . KELLY , MAYOR
ATTEST:
SHEILA R . GILLIGAN , CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
•
Palm Desert Disposal, Inc.
41-575 Eclectic Street
P.O. Box 3876 A Waste Management Company
Palm Desert,California 92261-3876
619/324-1741
ATTACHMENT A
Resolution
ANALYSIS OF DUMP LEES
CITY OF PALM DESERT
RESIDENTIAL: Current Proposed
.65 .80
COMMERCIAL:
2-Cubic Yard
lx 3.18 3.85
2x 6.36 7.70
3x 9.54 11.55
4x 12.74 15.40
5x 15.90 19.25
6x 19.08 23.10
3-Cubic Yard
lx 4.77 5.75
2x 9.54 11.55
3x 14.31 17.30
4x 19.08 23.10
5x 23.85 28.85
6x 28.62 34.65
4-Cubic Yard
lx 6.36 7.70
2x 12.72 15.40
3x 19.08 23.10
4x 25.44 30.80
5x 31.80 38.45
6x 38.16 46.15
THOMAS, BYRNE & SMITH
AN ACCOUNTANCY CORPORATION 7 4. L L.;
CERTIFIED PUBLIC ACCOUNTANTS lt��4362 Orange Street,Riverside,California 92501 J U L 1 387
682-4851
LY CESERT Ci(Y HI:LI
Donald L.Thomas,C.P.A.
D.Richard Byrne,C.P.A. July 1, 1987 r'TY;^.F\',1G cr•
V.C.Smith,Jr.,C.P.A.
Allen C.Harrison,C.P.A.
Mr. Carlos Ortega
Assistant City Manager
City of Palm Desert
Palm Desert, California 92261
Dear Mr. Ortega:
Pursuant to our discussion we have reviewed the books and records of Palm Desert
Di
sposal relative to a request for an increase in refuse collection rates.
Our review of the books and records and the resulting operating statements of
Palm Desert Disposal, excluding costs for franchise fees, management fees, etc. ,
indicate the following:
FYE 3-31-86 FYE 3-31-87 Increase
Total Cost of Expenses $3,597,617 $4,163,523 15.73
Average Units Serviced 33,485 35,612 6.35
Total Cost Per Unit $107.44 $116.91 8.81
The results of our review were discussed with Palm Desert Disposal personnel and
we understand they concur.
We found the staff members of Palm Desert Disposal very cooperative and cordial
during our review.
If you have any questions in regard to our review, within the agreed constraints,
please feel free to contact our office.
Respectfully submitted,
THOMAS, BYRNE & SMITH
An Acco to cy Cor ration
/07 Li Id"
By: D. Richard Byrne
Certified Public Accountant
DRB/km