HomeMy WebLinkAboutRefuse Dump Fee Surcharge Increase •
APPIP ''ED BY CITY COUNCIL
INTEROFFICE nEmoRAKtiiiRED
CITY OF PALM DESERT
tiiR with C4\ Clerk's Office
DATE : JUNE 17 , 1986
TO : CITY MANAGER , HONORABLE MAYOR AND MEMBERS OF CITY
COUNCIL
FROM : ASSISTANT CITY MANAGER
SUBJECT: REFUSE DUMP FEE SURCHARGE INCREASE
Recommendation:
That Palm Desert Disposal be allowed to apply dump fee surcharges
to cover cost of County dump fees in accordance with Exhibit A .
Background:
In 1978 , the County of Riverside , which is the agency responsible
for operating the regional dump , initiated a dump fee . Palm
Desert Disposal requested an increase in refuse rates to cover
the dump fees . Via Resolution 78- 111 , the City Council author-
ized Palm Desert Disposal to pass-through the county dump fees
to Palm Desert customers with the provision the company account
separately for dump fee collections and payments . In addition ,
the resolution provided that the surcharge could be adjusted
based on a comparison of dump fee payments to the County and
fees collected from customers . If an adjustment in dump fees
(dump fee surcharge) is needed, the City Manager is authorized to
negotiate a new dump fee based on information provided by the
company.
In July of 1985 , the City Council granted a substantial increase
in the dump surcharge fees . In January of 1986, the County once
again raised the fees . As a result , the cities in the Coachella
Valley and the refuse companies have been meeting with Supervisor
Larson to determine whether the dump fees are fair and to
separate the cost of operation for the various County dump
sites . Although the cities and the refuse companies have made
some headway, the County has not yet been able to separate the
costs of operating the various dump sites .
Both the cities and the refuse companies are concerned that this
cost is outgrowing the other cost of providing refuse services .
For example : The attached communications from Palm Desert
Disposal shows that the new fees , now being charged by the
County , will represent an increase of 277. for residential and
commercial customers . The proposed fees will be 60 cents per
month per residence . For commercial customers , the increase
ranges from 68 cents for low volume users to $ 18 . 60 per month
for the high volume users .
Based on the most common type of commercial use in the City, the
average increase in dump fees will be $2 . 04 . The City' s resolu-
tion indicates that the dump fees can be increased or decreased
on a yearly basis if the company on a yearly basis pays more in
dump fees than it takes in from customers . We have been provided
with an accounting from the refuse disposal auditor , which shows
that in the year-ended December 31 , 1985 , the company experienced
a shortfall in this category.
My recommendation is that we go ahead and provide increase as
requested, and that we look at last year' s figures of revenues
collected versus cost paid to see whether the amount collected
is sufficient to cover the cost .
6e4/..0
: VIEWED & CONCUR:
Carlos L . Ortega
Assistant City Manager 4/11ft
mh
City Manager
Attachment
EXHIBIT A
4.11
Palm Desert Disposal, Inc.
41-575 Eclectic Street
P.O. Box 3876 A Waste Management Company
Palm Desert,California 92261-3876
619/324-1741 RECEIVED
JUN 101986
June 6, 1986 PALM DESERT CITY HALL
CITY MANAGER
City of Palm Desert
P.O. Box 1977
Palm Desert, Ca. 92261
Attn: Carlos Ortega
Dear Carlos;
Per our conversation on the 3rd of July the following documentation has been
compiled regarding the increased disposal surcharged at county landfills (27%).
As we discussed and agreed, the users of our services should pay county disposal
fees based on actual average weights, only because the county fees are based on
weight and not volume. Therefore, per your request we have throughly analyzed our
residential and commercial services by category to determine the following basis:
1. Average monthly pounds per resident
2. Average monthly commercial pounds per cubic yard
The data explaining how we derived at the proposed dump fee charges are shown
in Tables I and II. The summary of our anaylsis is as follows :
I. Residential
To determine monthly dump fee charges the following formulas must be completed.
1. Average pounds per residential unit per week
2. Average monthly pounds per residential unit
3. Average monthly pounds times county landfill fee by pound ( .0035) =
total monthly dump fee.
The residential study was implemented August 1st and completed on September
5th, 1985. In that time we sampled 40,082 residential units to achieve our weekly
average of 39.63 pounds. This weekly average allows us to calculate a monthly dump
fee cost of .60 cents per unit. Therefore, we recommend a monthly dump fee charge
of .65 cents which includes 10% for administrative handling.
II. Commercial
To derive at monthly dump fees for commercial services the following formulas must
be completed.
(1) Average weekly pounds per cubic yard
(2) Average monthly pounds per cubic yard
(3) Average monthly pounds per cubic yard times county landfills by
pound = monthly dump fee per cubic yard
/1N/A A Waste Management Company
‘42:7
June 6, 1986
page 2
Continued, Commercial II .
The commercial study was based on figures used previously on the correspondence
dated March 8th, 1985. At that time we sampled 3,402 containers or 10,404 cubic
yards (See Table II) . We found that the average weekly pounds per cubic yard was
123 or 532.5 pounds per month. Therefore, with the increased disposal surcharges at
the county landfill the total monthly dump fee per cubic yard should be 1.45 plus
10% administrative handling or $1.59.
In summary, I hope the information furnished to you in our recent analysis
satisfies your requirements for disposal fee adjustment. Thank you for your time
and understanding. I would appreciate some of your time in the near future to -dis-
cuss this report.
Sinc ely /
Raymond P. Burke
General Manager
Palm Desert Disposal
14;i;:h
11/40, A Waste Management Company
9 P Y
PALM DESERT--RESIDENTIAL TABLE I
Average
Dates # of Stops Disposal Tons Disposal Lbs. Lbs./Stops
8-9/85 40,082 794.40 1,588,800 39.63
Average pounds per unit per week = 39.63
1. Average pounds per unit per week = 39.63
2. Total monthly average pounds x .0035 = total monthly dump fee to break even.
1. 39.63 x 4.33 = 171.59
2. 171.59 x .0035 = .60 cents
.60 + administrative 10% = .65 cents
PALM DESERT DISPOSAL
PALM DESERT COMMERCIAL TABLE II
Total Disposal Disposal Average
Dates Total Bins Yards Tons Pounds lbs/unit
2/3-3/4 3,402 10,404 500.79 1,001,580 96.53
(1) Average weekly pounds per cubic yards x 4.33 = average monthly pounds per
cubic yard.
(2) Average monthly pounds per cubic yard x .0035 (dump fee per yard) = total
monthly dump fee per yard.
(1) 96 x 4.33 = 415.68
(2) 415.68 x .0035 = 1.45 + 10% (administrative) = $1.59
TABLE OF CURRENT DUMP vs PROPOSED DUMP FEE
Current Charge Proposed Charge Actual Increase
2 - Cubic Yard Bin
1 x 2.50 3. 18 .68
2 x 5.00 6.36 1.36
3 x 8.30 9.54 2.02
4 x 10.00 12.74 2.74
5 x 13.80 15.90 3.40
6 x 15.00 19.08 4.08
3 - Cubic Yard Bin
1 x 3.75 4.77 1.02
2 x 7.50 9.54 2.04
3 x 11.25 14.31 2.06
4 x 15.00 19.08 4.08
5 x 18.75 23.85 5. 10
6 x 22.50 28.62 6. 12
4 - Cubic Yard Bin
1 x 5.00 6.36 1. 36
2 x 10.00 12. 72 2.72
3 x 15.00 19.08 4.08
4 x 22. 10 25.44 5.44
5 x 25.00 31.80 6.80
6 x 30.00 38. 16 8. 16
CURRENT RATES
MONTHLY
ANALYSIS OF DUMP FEES BY CITY
3-cubic yard Monthly
City 1 x week Residential
County $7 . 25 $ . 95
Desert Hot Springs 6 . 63 . 95
Palm Springs 5 . 07 1 . 07
Indio 5 . 00 1 . 00
La Quinta 4 . 40 . 35
Cathedral City 4 . 40 . 35
Rancho Mirage 4 . 15 . 50
Palm Desert 3 . 75 . 35
Indian Wells 2 . 75 . 35
Proposed increase ( 27%) $4 . 75 $ . 45
to Palm Desert to be
effective July 1 , 1986
• \
PALM DESERT DISPOSAL PRICE ANALYSIS
AS OF: MAY 1, 1986
COUNTY OF DESERT HOT PALM CATHEDRAL RANCHO PALM INDIAN LA
DESCRIPTION RIVERSIDE SPRINGS SPRINGS CITY MIRAGE DESERT WELLS QUINTA INDIO AVERAGES
RESIDENTIAL:
PICK--UP FREQUENCY : 1 X WK ; 1 X WK : 2 X WK : 1 X WK ; 2 X WK : 1 X WK ; 1 X WK : 1 X WK : 1 X WK
CURB SERVICE:PER MONTH $7.60 ; $4.94 : $10.10 ; $6.20 ; N/A I $5.20 ; N/A $5.65 : $7.50
:DUMP FEE $0.60 : $0.95 $1.07 . $0.35 , N/A $0.35 N/A $0.35 N/A
WALK-IN SERVICE:PER MONTH : $10.40 ; N/A $10.10 : $8.70 ; $8.90 ; $6.80 : $6.20 ; $8.15 : $9.50
:DUMP FEE $0.60 . N/A $1.07 . $0.35 , $0.50 $0.35 $0.35 , $0.35 N/A
START CHARGE $4.85 , N/A N/A N/A $4.70 $4.50 N/A N/A $5.00
RESTART CHARGE $12.75 . N/A N/A N/A $9.05 $12.10 N/A N/A $5.00
COMMERCIAL: :
THREE CUBIC YARD SERVICE ,
1 X : $53.70 : $35.52 ; $47.52 : $48.40 ; $41.15 ; $37.70 : $37.70 ; $52.35 ; $40.00 : $43.78
2 X : $93.10 : $63.94 : $80.97 : $82.95 ; $67.75 : $62.00 : $62.00 $90.90 ; $71.05 : $74.96
3 X ; $131.60 ; $92.36 ; $114.42 ; $116.70 ; $95.30 ; $87.40 : $87.40 ; $128.60 ; $101.95 ; $106.19
4 X $167.00 $120.75 : $147.87 : $147.30 : $120.35 ; $109.80 : $109.80 ; $163.15 ; $132.05 ; $135.34
5 X : $205.10 : $149.14 $181.32 : $180.65 ; $147.75 ; $135.30 : $135.30 ; $200.45 ; $161.95 : $166.33
6 X : $241.75 ; $177.55 ; $214.77 : $212.55 : $173.50 : $159.20 ; $159.20 ; $236.30 : $194.90 $196.64
THREE CUBIC YARD DUMP FEE ,
1 X $7.25 ; $6.63 : $5.07 ; $4.40 ; $4.15 : $3.75 : $2.75 : $4.40 ; N/A $4.27
2 X ; $14.50 : $13.26 : $10.14 ; $8.80 ; $8.30 ; $7.50 ; $5.45 : $8.80 : N/A $8.53
3 X : $21.75 : $19.89 : $15.21 ; $13.20 ; $12.40 : $11.25 : $8.15 ; $13.20 : N/A ; $12.78
4 X : $29.00 : $26.52 ; $20.28 ; $17.60 : $16.55 : $15.00 : $10.90 $17.60 ; N/A ; $17.05
5 X : $36.25 ; $33.15 ; $25.35 : $22.00 : $20.70 ; $18.75 : $13.60 : $22.00 N/A ; $21.31
6 X ; $43.50 : $39.78 : $30.42 ; $26.40 ; $24.85 : $22.50 : $16.35 ; $26.40 ; N/A : $25.58
ROLLOFF: ,
TEMPORARY ROLLOFF SERVICE: ,
20 YARD BOX : $84.20 ; $52.52 : $68.48 : $82.55 : $78.85 : $68.80 : $68.65 ; $84.70 ; $64.30
30 YARD BOX ; $112.20 ; $72.77 : $96.51 : $109.85 : $105.05 : $87.15 $87.15 : $112.75 ; $85.90
40 YARD BOX ; $129.70 ; $87.03 : $114.16 : $127.05 : $121.50 ; $100.00 ; $99.95 : $130.35 : $0.00 :
TEMPORARY ROLLOFF DUMP FEE: ,
20 YARD BOX ; $39.10 : $18.05 : $16.94 : $29.50 : $29.50 : $29.60 : $29.60 ! $29.50 : $20.00
30 YARD BOX : $39.10 : $27.08 ; $25.33 : $31.30 : $31.30 : $31.90 : $31.80 ; $31.30 : $30.00
40 YARD BOX . $44.00 , $36.10 : $33.86 , $46.60 $46.60 $39.70 , $39.70 $46.60 $0.00 ,
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