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HomeMy WebLinkAboutCC RES 04-049RESOLUTION NO. 04-49 A RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE NEW ADJUSTED RATE SCHEDULE OF FEES (EXHIBIT 5) FOR THE COLLECTION, RECYCLING, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RESIDENTIAL/COMMERCIAL RECYCLING AS DEFINED AND CONTAINED IN CONTRACT NO. C17230 — SOLID WASTE MANAGEMENT SERVICES WHEREAS, on the 31st day of January, 2001, the exclusive contract with Waste Management of the Desert to provide solid waste collection and residential and commercial recycling services became effective with approval from the City Council of the City of Palm Desert, California; and WHEREAS, the franchise agreement sets forth rates for solid waste collection and recycling services within the City of Palm Desert (Exhibit 5); and WHEREAS, new rates (revised Exhibit 5) may be adjusted by the PPI formula at the beginning of the third year of said agreement; and the new rates will become effective July 1, 2004; and WHEREAS, the franchise agreement allows for a pass through to residents and businesses any increase in the disposal costs incurred by the franchisee; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: 1. The City Council of the City of Palm Desert, California, effective July 1, 2004, approves the new adjusted rates (PPI and County Disposal Increases) as presented in Exhibit 5, and effective November 1, 2004 approves the new adjusted rates (Transfer Station Disposal Increase) as presented in Exhibit 5, and referenced in the Agreement with Waste Management of the Desert for solid waste collection and residential and commercial recycling services attached hereto and made a part hereof. 2. The City Council of the City of Palm Desert, California, will receive an $8.25 per ton tipping fee and direct the funds to a special account, "Waste and Recycling Fee". 3. That Waste Management of the Desert shall forward to the City on a monthly basis an amount equal to $8.25 per ton for all waste collected and disposed of under the agreement. 4. That the schedule of solid waste service rates, $8.25/ton surcharge, and 8% franchise fee shall be in accordance with the franchise agreement that became effective on January 31, 2001. Resolution No. 04-49 PASSED, APPROVED, AND ADOPTED this lottday of June -, 2004, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: BENSON, CRITES, KELLY, SPIEGEL NOES: NONE ABSENT: FERGUSON ABSTAIN: NONE Robert A. Spiegel, M ATTESTED: chelle P. KL ssen • CITY CLERK( CITY OF PALM DESERT RESOLUTION NO. 04-49 EXHIBIT 5 ANNUAL PPI ADJUSTMENT RATE ADJUSTMENT FORMULA 5A Can and Cart Customers 5B Bin Rates 5C Roll -off Box Rates EXHIBIT 5A Residential Rates Adjustment Example Rate Adjustment Step One: Deduct franchise fees from gross rate revenue 1 Revenue Component (Including franchise fees) Gross Residential Rate Revenue Residential Franchise Fee (b) Residential Rate Revenue Net of Franchise Fees RESOLUTION NO. 04-49 Step Two: Determine disposal expense. recycling fees, and service revenue as a percent of actual rate revenue net of franchise fees Annual Amount (al $ 2,495,104 $ 151,852 $ 2.343,252 Percent of Rate Revenue Net Revenue Component (net of Franchise Fees) Annual Amount of Franchise Fees (Calc'd) Residential Rate Revenue Net of Franchise Fees ( c) $ 2,343,252.43 100 0% Less: Actual Residential Refuse Disposal Expense $ 468,198 30 20.0% Less: Actual Residential Recyclina Fees $ 128,754.53 27.5% Residential Service Revenue $ 1.746,299 60 52.5% Adlustment Factor Disposal Tipping Fee per Ton Recycling Fee per Ton Producer Price Index Step Three: Calculate percentage change In adiustment factors Allowable Portion of Old New Index Change I Index Change 30.00 $ 30.00 0.0% 100.0% $ 8.25 $ 8.25 0.0%I 100 0%I 140.80 145.40 3 3% 50 0% Rate Component Percent Change (d) 0 0% 0.0% 1 6% Step Four: Calculate weighted percentage change In single family rates Component Rate Component Components of Actual Revenue Weight ' (el Percent Change (f) Weighted Rate Adjustment Refuse Disposal 20.0% 0 0% 0 0% Recycling Fee 27 5% 0.0% 0.0% Service 52 5% 1 6% 0.9% I Total 100.0% 0 9% Step Five: Apply weighted percentage change to single family rates Current Monthly Rate (Example Only) Weighted Rate Service 19) Adjustment (h) Rate Change Adjusted Monthly Rate (i( 96 Gallon Automated Cart Collection, Tax Roll $ 9 31 0 9% $ 0 08 $ 9 39 Walk-in Service Fee premium $ 3 73 0 9% $ 0 03 $ 3 76 (a) For the twelve months ending on the date, six months prior to the effective date of the rate adjustment For example, for a rate adjustment effective July 1, 2002, the revenue used should be for the twelve months ending December 31,2001 (b) Franchise Fee is 8 0% of Gross Revenue less Disposal Fees and per ton Recycling Fees, or (($1,400,000 - 5398,222) X 8 0%) (c) From Step One above (d) "Index Change" multiplied by "Allowable Portion of Index Change" (e) From "Percent of Rate Revenue Net of Franchise Fees" in Step Two (f) From last column in Step Three (g) The weighted rate adjustment should be applied to the total rate, inducting Franchise Fee portion of the rate (h) From weighted rate adjustment in Step Four (i) Current Monthly Rate" plus "Rate Change". Note. Rate adjustment for residential service billed directly by Waste Management not shown, but the adjustment would follow the same methodology. EXHIBIT 5B Commercial Bin Rates Adjustment Example Rate Adjustment Step One: Deduct franchise fees from gross rate revenue I Gross Commercial Rate Revenue Commercial Franchise Fee (b) Commercial Rate Revenue Net of Franchise Fees Revenue Component (including franchise fees) RESOLUTION NO. 04-49 Step Two: Determine disposal expense, recvclinq fees, and service revenue as a percent of actual rate revenue net of franchise fees Annual Amount (a) $ 3,236,537 $ 160,812 $ 3,075,725 Percent of Rate Revenue Net Revenue Component (net of Franchise Fees) Annual Amount of Franchise Fees (Caled) (Commercial Rate Revenue Net of Franchise Fees (c) $ 3,075,724.80 100.0% Less: Actual Commercial and MRF Bin Refuse Disposal Cost $ 961,867.20 31.3% Less: Actual Commercial and MRF Bin Recycling Fees $ 264,513.48 8.6% (Commercial and MRF Bin Service Revenue $ 1,849,344.12 60.1% Step Three: Calculate 3ercentaae chance in adjustment factors Allowable Portion of Adjustment Factor Old New Index Chanpe Index Change Disposal Tipping Fee per Ton $ 30.00 $ 30.00 0.0% 100.0% AB939 Fee per Ton $ 8.25 $ 8.25 0.0% 100.0% Producer Price Index 140.80 145.40 3.3% 50.0% Rate Component Percent Change (d) 0.0% 0.0% 1.6% Step Four. Calculate weighted percentage change in single family rates Component Rate Component Components of Actual Revenue Weight (e) Percent Change (f) Weighted Rate Adjustment Refuse Disposal 31.3% 0.0% 0.0% Recycling Fee 8.6% 0.0% 0.0% Service 60.1% 1.6% 1.0% I Total 100.0% 1.0% Step Five: Apply weighted percentage change to sinale family rates Current Monthly Rate (Example Only) Weighted Rate Service Ic l flit__Adiustment (it Rate Change Adjusted Monthly Rate (j) (1) 3yard bin, once per week $ 76.63 1.0% $ 0.75 $ 77.38 (1) 3yard bin, twice per week $ 136.91 1.0% $ 1.34 $ 138.25 (1) 3yard bin, three times per week $ 178.58 1.0% $ 1.75 $ 180.33 (1) 3yard bin, four times per week $ 251.64 1.0% $ 2.47 $ 254.11 (1) 3yard bin, five times per week $ 312.23 1.0% $ 3.07 $ 315.30 (1) 3yard bin, six per week $ 372.66 1.0% $ 3.66 $ 376.32 (a) For the twelve months ending on the date, six months prior to the effective date of the rate adjustment. For example, for a rate adjustment effective July 1, 2002, the revenue used should be for the twelve months ending December 31,2001. (b) Franchise Fee is 8.0% of Gross Revenue less Disposal Fees and AB939 Fees, or (($1,200,000 - $534,000 - 43,823) X 8.0%) (c) From Step One above (d) "Index Change" multiplied by "Allowable Portion of Index Change" (e) From "Percent of Rate Revenue Net of Franchise Fees" in Step Two (f) From Step Three (g) Not all rate categories are shown in this example (h) The weighted rate adjustment should be applied to the total rate, including Franchise Fee and AB939 Fee portion of the rate. (i) From weighted rate adjustment in Step Four (j) Current Monthly Rate" plus "Rate Change". Note: Rate adjustment for "Other Services" not shown, but the adjustment would follow the same methodology. EXHIBIT 5C Roll Off Box Rates Adjustments Example Rate Adjustment Step One: Calculate percentage change in Producers Price Index Adjustment Factor Old Producer Price Index 140.80 RESOLUTION NO. 04-49 Allowable Portion of New Index Change Index Change (al 145.40 3.3% 50.00/, Mal Rate Component Percer Change (b) Step Two: Apply 50% of percentage change in Producer Pric = Index to Service Portion of Roll -off Rates Current Monthly Rate (Example Only) Weighted Rate Service 1(0 Adjustment (h( Rate Chanae Adiusted Monthly Rate fit Standard Roll -off Charge Per Load ( 20yd to 30yd box) (c) $ 106.76 1.6% $ 1.74 $ 108.50 Standard Roll -off Charge Per Load (40yd Box)) (c) $ 106.76 1.6% $ 1.74 $ 108.50 Compactor Charge Per Load $ 172.28 1.6% $ 2.81 $ 175.09 Relocation Charge $ 15.12 1.6% $ 0.25 $ 15.37 Delivery Charae $ 15.12 1.6% $ 0.25 $ 15.37 (a) 50% of the Percent change in PPI is allowed (b) "PPI Index % Change" multiplied by 50% (c) Excluding Disposal. Disposal is billed at actual cost on the based on the tipping fee per ton at the landfill or transfer station used by the Company, plus Recycling Fees, multiplied by the number of tons. Note: Rate adjustment for "Other Services" not shown, but the adjustment would follow the same methodology. Service Automated Refuse Service - per Cart (first cart) -96 Gallon Cart -64 Gallon Cart -32 Gallon Cart Manual Curbside Service - per Unit Manual Walk-in Service - per Unit Manual In -Ground Can - per Unit Subtotal: Dwelling Unit Revenue Automated Walk-in Fee - per Unit* Greenwaste Container Service RESOLUTION NO. 04-49 Exhibit 4 2004 Rates Residential Monthly Service Rates Individually Billed Customers Master -Billed Customers - Discounted 11% lonthly t Rate Rate Automated Refuse Service - per Cart (first $ 9.40 $ 7.52 $ 5.64 $ 10.34 $ 13.16 $ 13.16 $ 3.76 $ 1.02 For Individually or Master Billed Accounts Monthly Additional Refuse Cart - Cart Size Rate Automated 96 Gallon Cart Automated 64 Gallon Cart Automated 32 Gallon Cart 4.70 3.76 2.82 cart) -96 Gallon Cart -64 Gallon Cart -32 Gallon Cart Manual Curbside Service -Single Family or Multi -Family -Single Family or Multi -Family 2/week -Mobile Home Park - Per Unit Manual Walk-in Service* -Single Family or Multi -Family -Single Family or Multi -Family 2/week -Mobile Home Park - Per Unit Manual In -Ground Can Manual In -Ground Can 2/wk Automated Walk-in Fee Greenwaste Container Service Monthly $ 8.36 $ 6.70 $ 5.02 $ 9.21 $ 12.13 $ 8.36 $ - $ 11.72 $ 14.64 $ 10.87 $ 11.72 $ 14.64 $ 3.34 $ 0.90 *Walk-in Customers shall be charged this rate, in addition to basic service rate, for each refuse or greenwaste cart, but not for recycling carts. Disabled customers shall not be charged extra for this service. Note: Small volume commercial customers with automated carts shall pay these residential rates. RESOLUTION NO. 04-49 Exhibit 4 2004 Rates Additional Services Description Rate Locking Bin Monthly Service Charge - per lifts per week $ 10.23 Bin Cleaning (in excess of one bin cleaning per year) $ 35.82 2 Cubic Yard - Extra Empty $ 27.63 3 Cubic Yard - Extra Empty $ 37.87 4 Cubic Yard - Extra Empty $ 51.17 6 Cubic Yard - Extra Empty $ 76.76 Temporary front end load in (delivery, pickup and disposal) $ 102.34 Roll -off Delivery or Relocation Charge $ 15.37 Re -start Fee - following voluntary or involuntary suspension of service $ 15.37 Returned Check Fee $ 15.35 Bulky Item Pick-up - each item beyond four per pick-up $ 10.24 Cart Exchange - for entire HOA's (per cart exchanged) $ 6.14 RESOLUTION NO. 04-49 Refuse Bin Rates - Container Size 2 Cubic Yards 3 Cubic Yards 4 Cubic Yards 6 Cubic Yards Exhibit 4 2004 Rates Commercial Service Rates Commercial Bin Collection I I I Pickups per Week 1 $ 59.05 $ $ 77.78 $ $ 106.92 $ $ 161.78 $ Greenwaste Bin or Food Waste Bin Rates - 75% of refuse bin rates. 2 103.54 $ 138.96 $ 179.44 $ 272.39 $ 3 148.38 $ 181.26 $ 254.36 $ 386.68 $ Rollof and Compactor Services Roll -off and Compactor rates are Dull NUS disposal plus delivery charge for initial delivery if aoolicable Description 4 192.73 255.42 329.57 500.88 5 6 $ 237.41 $ 310.79 $ 316.91 $ 378.25 $ 404.50 $ 473.55 $ 605.25 $ 720.71 Standard Refuse Pull Charge (Standard Greenwaste / Construction & Demolition Pull Charae Compactor Pull Charge Landfill Disposal Charge I Greenwaste Disposal Charge [Construction and Demolition Disposal Charoe (a) The disposal charge per ton includes both the landfill tipping fee (currently $30.54 per ton) and the City's recycling fee of (b) The disposal charge is currently $15.52, subiect to an annual inflationary adjustment per contract with Califomia B (c ) The disposal charge for construction and demolition materials such as asphalt, concrete, dirt, gypsum, dry wall and other mate from $5.00 to $22.00 per ton Rate Per Pull or Rate Per Ton $ 108.47 $ 102.44 $ 174.05 actual cost (a) actual cost (b) actual cost (c $8.25 per ton. iomass. rials currently ranges RESOLUTION NO. 04-49 EXHIBIT 5 RIVERSIDE COUNTY DISPOSAL RATE INCREASE OF $.50 RATE ADJUSTMENT FORMULA 5A Can and Cart Customers 5B Bin Rates 5C Roll -off Box Rates EXHIBIT 5A Residential Rates Adjustment Example Rate Adjustment Step One: Deduct franchise fees from gross rate revenue I Revenue Component (Including franchise fees) Gross Residential Rate Revenue Residential Franchise Fee (b) Residential Rate Revenue Nat of Franchise Fees RESOLUTION NO. 04-49 Annual Amount (a)- I S 2,495,104 $ 151,852 $ 2,343,252 Step Two: Determine disposal expense, recycling fees, and service revenue as a percent of actual rate revenue net of franchise fees Percent of Rate Revenue Net Revenue Component (net of Franchise Fees) Annual Amount of Franchise Fees 5Calc'd) Residential Rate Revenue Net of Franchise Fees ( c) $ 2,343,252.43 100.0% Less: Actual Residential Refuse Disposal Expense $ 468,198.30 20.0% Less: Actual Residential Recvdina_ Fees $ 128 754.53 27.5% I Residential Service Revenue $ 1,746 299.60 52.5% Stec Three: Calculate Tentage chance In adiustment factors Adluabnent Factor Old New Index Change Disposal Tipping Fee per Ton 30.00 $ 30.54 1.8% Recycling Fee per Ton $ 8.25 $ 8.25 0.0% Producer Price Index 14n 80 145.40 3.3% Allowable Portion of Index Chance 100.0% 100.0% 50.0% Rate Component Percent Change id) 1.8% 0.0% 1.6% Step Four. Calculate weighted percentage change in single family rates Component Rate Component Components of Actual Revenue Weight (el Percent Chang_ a (f) Weighted Rate Adiustment Refuse Disposal 20.0% 1.8% 0.4% Recycling Fee 27.5% 0.0% 0.0% Service 52.5% 1.6% 0.9% Total 100.0% 1.2%1 Steo Five: Apply welahted oereentaae change to single family rates Current Monthly Rate (Example Only) Weighted Rate Service tg) Adlustment(h) Rate Change Ad)uated Monthly Rate jl► 96 Gallon Automated Cart Collection, Tax Roll $ 9.31 1.2% $ 0 11 $ 9 42 Walk-in Service Fee premium $ 3.73 1.2% $ 0 05 $ 3.78 (a) For the twelve months ending on the date, six months prior to the effective date of the rate adjustment. For example, for a rate adjustment effective July 1, 2002, the revenue used should be for the twelve months ending December 31,2001. (b) Franchise Fee is 8.0% of Gross Revenue less Disposal Fees and per ton Recycling Fees, or (($1,400,000 - $398,222) X 8.0%) (c) From Step One above (d) "Index Change" multiplied by "Allowable Portion of Index Change" (e) From "Percent of Rate Revenue Net of Franchise Fees" in Step Two (f) From last column in Step Three (9) The weighted rate adjustment should be applied to the total rate, including Franchise Fee portion of the rate (h) From weighted rate adjustment in Step Four (i) Current Monthly Rate" plus "Rate Change". Note: Rate adjustment for residential service billed directly by Waste Management not shown, but the adjustment would follow the same methodology. EXHIBIT 5B Commercial Bin Rates Adjustment Example Rate Adjustment Step One: Deduct franchise fees from gross rate revenue 1 Revenue Component (including franchise fees) Gross Commercial Rate Revenue Commercial Franchise Fee (b) Commercial Rate Revenue Net of Franchise Fees RESOLUTION NO. 04-49 1 Commercial Rate Revenue Net of Franchise Fees ( c) $ 3,075,724.80 Less: Actual Commercial and MRF Bin Refuse Disposal Cost $ 961,867.20 Less: Actual Commercial and MRF Bin Recycling Fees $ 264,513.48 (Commercial and MRF Bin Service Revenue $ 1 849,344.12 Annual Amount (a) $ 3,236, $ 160,140 3,075,725 Step Two: Determine disposal expense. recycling fees. and service revenue as a percent of actual rate revenue net of franchise fees Percent of Rate Revenue Net Revenue Component (net of Franchise Fees) Annual Amount of Franchise Fees (Calc'd) 100.0% 31.3% 8.6% 60.1 % Step Three: Calculate percentage chance in adjustment factors 'Allowable Portion of Adjustment Factor Old New Index Changa Index Change Disposal Tipping Fee per Ton $ 30.00 $ 30.54 1.8% 100.0% AB939 Fee per Ton $ 8.25 $ 8.25 0.0%I 100.0% Producer Price Index 140.80 145.40 3.3% 50.0% Rate Component Percent Changed) 1.8% 0.0% 1.6% Step Four. Calculate weighted percentage chance in sinaale family rates Component Rate Component Components of Actual Revenue Weight(e) Percent Change (f) .1Weighted Rate Adjustment 'Refuse Disposal 31.3% 1.8% 0.6% Recycling Fee 8.6% 0.0% Service 60.1% 1.6% Total 100.0%1 0.0% 1.0% 1.5% Step Five: Apoly weighted percentage chance to sinale family rates Current Monthly Rate (Example Only) Weighted Rate Service (9) (h1 Adjustment () Rate Change Adiusted Monthly RateDemo (1) 3yard bin, once per week $ 76.63 1.5% $ 1.18 $ 77.81 (1) 3yard bin, twice per week $ 136.91 1.5% $ 2.12 $ 139.03 (1) 3yard bin, three times per week $ 178.58 1.5% $ 2.76 $ 181.34 (1) 3yard bin, four times per week $ 251.64 1.5% $ 3.89 $ 255.53 (1) 3yard bin, five times per week $ 312.23 1.5% $ 4.82 $ 317.05 (1) 3vard bin, six per week $ 372.68 1.5% $ 5.76 $ 378.44 (a) For the twelve months ending on the date, six months prior to the effective date of the rate adjustment. For example, for a rate adjustment effective July 1, 2002, the revenue used should be for the twelve months ending December 31,2001. (b) Franchise Fee is 8.0% of Gross Revenue less Disposal Fees and AB939 Fees, or (($1,200,000 - $534,000 - 43,823) X 8.0%) (c) From Step One above (d) "Index Change" multiplied by "Allowable Portion of Index Change" (e) From "Percent of Rate Revenue Net of Franchise Fees" in Step Two (f) From Step Three (g) Not aN rate categories are shown in this example (h) The weighted rate adjustment should be applied to the total rate, including Franchise Fee and AB939 Fee portion of the rate. (I) From weighted rate adjustment in Step Four (j) Current Monthly Rate" plus "Rate Change". Note: Rate adjustment for "Other Services" not shown, but the adjustment would follow the same methodology. EXHIBIT 5C Roll Off Box Rates Adjustments Example Rate Adjustment Step One: Calculate percentage change in Producer's Price Index 1 Adiustment Factor Producer Price Index Step Two: Apply 5O% of percentage change in Service Standard Roll -off Charge Per Load ( 20yd to 30yd box) (c ) Standard Roll -off Charge Per Load ( 40yd Box)) (c ) Compactor Charge Per Load Relocation Charge Delivery Charge Old I New 140.80 145.40 RESOLUTION NO. 04-49 Allowable Portion of Index Chance Index Change (al 3.3% 50.0% Producer Price Index to Service Portion of Roll -off Rates Current Monthly Rate (Example Only) Igl $ 106.76 $ 106.76 $ 172.28 $ 15.12 $ 15.12 Rate Component Percent Change (bl 1.6% Weighted Rate Adjustment Jhl Rate Change Adjusted Monthly Rate Jit 1.6% $ 1.74 1.6% $ 1.74 $ 1.6% $ 2.81 $ 1.6% $ 0.25 $ 1.6% $ 0.25 $ (a) 50% of the Percent change in PPI is allowed (b) 'PPI Index % Change" multiplied by 50% (c) Excluding Disposal. Disposal is billed at actual cost on the based on the tipping fee per ton at the landfill or transfer station used by the Company, plus Recycling Fees, multiplied by the number of tons. Note: Rate adjustment for "Other Services" not shown, but the adjustment would follow the same methodology. $ 108.50 108.50 175.09 15.37 15.37 RESOLUTION NO. 04-49 Exhibit 4 2004 Rates Residential Monthly Service Rates Individually Billed Customers Master -Billed Customers - Discounted 11% Service Automated Refuse Service - per Cart (first cart) -96 Gallon Cart -64 Gallon Cart -32 Gallon Cart Manual Curbside Service - per Unit Manual Walk-in Service - per Unit Manual In -Ground Can - per Unit Subtotal: Dwelling Unit Revenue Automated Walk-in Fee - per Unit* Greenwaste Container Service $ 9.43 $ 7.54 $ 5.66 $ 10.37 $ 13.20 $ 13.20 $ 3.77 $ 1.02 For Individually or Master Billed Accounts Monthly Additional Refuse Cart - Cart Size Rate Automated 96 Gallon Cart Automated 64 Gallon Cart Automated 32 Gallon Cart $ 4.72 3.77 2.83 Monthly 14We state Automated Refuse Service - per Cart (first cart) -96 Gallon Cart -64 Gallon Cart - 32 Gallon Cart Manual Curbside Service -Single Family or Multi -Family -Single Family or Multi -Family 2/week - Mobile Home Park - Per Unit Manual Walk-in Service* -Single Family or Multi -Family -Single Family or Multi -Family 2/week -Mobile Home Park - Per Unit Manual In -Ground Can Manual In -Ground Can 2/wk Automated Walk-in Fee Greenwaste Container Service $ 8.39 6.72 5.03 9.23 12.17 8.39 $ 11.75 $ 14.69 $ 10.90 $ 11.75 $ 14.69 $ 3.35 $ 0.91 *Walk-in Customers shall be charged this rate, in addition to basic service rate, for each refuse or greenwaste cart, but not for recycling carts. Disabled customers shall not be charged extra for this service. Note: Small volume commercial customers with automated carts shall pay these residential rates. RESOLUTION NO. 04-49 Exhibit 4 2004 Rates Additional Services Description Rate Locking Bin Monthly Service Charge - per lifts per week $ 10.18 Bin Cleaning (in excess of one bin cleaning per year) $ 35.64 2 Cubic Yard - Extra Empty $ 27.50 3 Cubic Yard - Extra Empty $ 37.68 4 Cubic Yard - Extra Empty $ 50.92 6 Cubic Yard - Extra Empty $ 76.38 Temporary front end Toad in (delivery, pickup and disposal) $ 101.84 Roll -off Delivery or Relocation Charge $ 15.37 Re -start Fee - following voluntary or involuntary suspension of service $ 15.37 Returned Check Fee $ 15.35 Bulky Item Pick-up - each item beyond four per pick-up $ 10.18 Cart Exchange - for entire HOA's (per cart exchanged) $ 6.11 RESOLUTION NO. 04-49 Commercial Service Rates I Commercial Bin Collection Refuse Bin Rates - 1 1 1 I Pickups per Week Container Size 1 2 3 4 5 6 2 Cubic Yards $ 58.76 $ 103.03 $ 147.65 $ 191.78 $ 236.24 $ 309.26 3 Cubic Yards $ 77.40 $ 138.28 $ 180.37 $ 254.16 $ 315.35 $ 376.38 14 Cubic Yards $ 106.39 $ 178.55 $ 253.11 $ 327.95 $ 402.51 $ 471.22 16 Cubic Yards $ 160.99 $ 271.05 $ 384.78 $ 498.42 $ 602.27 $ 717.16 1 Greenwaste Bin or Food Waste Bin Rates - 75% of refuse bin rates. Rollof and Compactor Services I RoII-off and Compactor rates are pull pIus disposal plus delivery charge for initial delivery if applicable Description Rate Per Pull or Rate Per Ton 1 Standard Refuse Pull Charge $ 108.47 'Standard Greenwaste / Construction & Demolition Pull Charge $ 102.44 Compactor Pull Charpe $ 174.05 Landfill Disposal Charge actual cost (a) I IGreenwaste Disposal Charge actual cost (b) 'Construction and Demolition Disposal Charge actual cost (c ) (a) The disposal charge per ton includes both the landfill tipping fee (currently $30.00 per ton) and the City's recycling fee of $8.25 per ton. (b) The disposal charge is currently $15.52, subiect to an annual inflationary adjustment per contract with California Biomass. (c ) The disposal charge for construction and demolition materials such as asphalt, concrete, dirt, gypsum, dry wall and other materials currently ranges from $5.00 to $22.00 per ton RESOLUTION NO. 04-49 Exhibit 4 2004 Rates Additional Services Description Rate Locking Bin Monthly Service Charge - per lifts per week $ 10.66 Bin Cleaning (in excess of one bin cleaning per year) $ 37.30 2 Cubic Yard - Extra Empty $ 28.78 3 Cubic Yard - Extra Empty $ 39.43 4 Cubic Yard - Extra Empty $ 53.29 6 Cubic Yard - Extra Empty $ 79.93 Temporary front end Toad in (delivery, pickup and disposal) $ 106.58 Roll -off Delivery or Relocation Charge $ 15.37 Re -start Fee - following voluntary or involuntary suspension of service $ 15.37 Returned Check Fee $ 15.99 Bulky Item Pick-up - each item beyond four per pick-up $ 10.66 Cart Exchange - for entire HOA's (per cart exchanged) $ 6.39 RESOLUTION NO. 04-49 I 'Refuse Bin Rates - I I I I I I Pickups per Week Container Size 1 2 3 4 5 6 2 Cubic Yards $ 61.50 $ 107.82 $ 154.52. $ 200.71 $ 247.24 $ 323.65 3 Cubic Yards $ 81.00 $ 144.71 $ 188.76 $ 265.98 $ 330.03 $ 393.90 4 Cubic Yards $ 111.34 $ 186.86 $ 264.89 $ 343.21 $ 421.24 $ 493.14 6 Cubic Yards $ 168.48 $ 283.67 $ 402.68 $ 521.61 $ 630.30 $ 750.53 Greenwaste Bin or Food Waste Bin Rates - 75% of refuse bin rates. Commercial Service Rates Commercial Bin Collection Rollof and Compactor Services Roll -off and Compactor rates are pull plus disposal plus delivery charge for initial delivery if applicable Description Rate Per Pull or Rate Per Ton Standard Refuse Pull Charge $ 108.47 Standard Greenwaste / Construction & Demolition Pull Charge $ 103.02 Compactor Pull Charge $ 175.04 'Landfill Disposal Charge actual cost (a) IGreenwaste Disposal Charge actual cost (b) 'Construction and Demolition Disposal Charge actual cost (c ) I (a) The disposal charge per ton includes both the landfill tipping fee (currently $34.51 per ton) and the City's recycling fee of $8.25 per ton. I (b) The disposal charge is currently $15.52, subject to an annual inflationary adjustment per contract with Califomia Biomass. (c) The disposal charge for construction and demolition materials such as asphalt, concrete, dirt, gypsum, dry wall and other materials currently ranges from $5.00 to $22.00 per ton RESOLUTION NO. 04-49 EXHIBIT 5 RATES FOR NEW TRANSFER STATION, NOVEMBER 2004 RATE ADJUSTMENT FORMULA 5A Can and Cart Customers 5B Bin Rates 5C Roll -off Box Rates EXHIBIT 5A Residential Rates Adjustment Example Rate Adjustment RESOLUTION NO. 04-49 Oft Step One: Deduct franchise fees from gross rate revenue Revenue Component (Including franchise fees) Gross Residential Rate Revenue Residential Franchise Fee (b) Residential Rate Revenue Net of Franchise Fees Step Two: Determine disposal expense, recycling fees, and service revenue as a percent of actual rate revenue net of franchise fees Annual Amount (a) $ 2,495,104 $ 151,852 $ 2,343252 Percent of Rate Revenue Net Revenue Component (net of Franchise Fees) Annual Amount _ of Franchise Fees (Crated)Residential Rate Revenue Net of Franchise Fees ( c) $ 2,343,252.30 100.0% Less: Actual Residential Refuse Disposal Expense $ 468,198 30 20.0% Less: Actual Residential Recvclma Fees $ 128,754.53 27.5% Residential Service Revenue $ 1,746,299.47 52 5% Adjustment Factor Disposal Tipping Fee per Ton Recycling Fee per Ton Producer Pnce Index Step Three: Calculate montage change In adtustment factors Allowable Portion of Old New Index Chanste Index Change 30.00 $ 34 51 15.0%1 100.0% $ 825 $ 8.25 0.0%I 100.0% 140.80 145.40 3.3%1 50 0% Step Four: Calculate weighted percentage change In single family rates Component Components of Actual Revenue Weight (e) Refuse Disposal 20.0% Recycling Fee 27.5% Service 52 5% ITotal 100 0% Rate Component Percent Changed) 15.0% 0.0% 1 6% Rate Component Portent Change jfl_ _ Weighted Rate Adjustment 150% 30%1 0.0% 0.0% 1 6% 0.9% 3.9% Step Five: Apply weighted percentage change to single family rates Cur erlt Monthly Rate (Example Only) Weighted Rate Service (a) Adjustment (h) Rate Change Adlusted Monthly Rate pit_ 96 Gallon Automated Cart Collection, Tax Roll $ 9.31 3 9% $ 0.36 $ 9 67 Walk-in Service Fee premium $ 3.73 3.9% $ 0 14 $ 3 87 (a) For the twelve months ending on the date, six months prior to the effective date of the rate adjustment. For example, for a rate adjustment effective July 1, 2002, the revenue used should be for the twelve months ending December 31,2001. (b) Franchise Fee is 8.0% of Gross Revenue less Disposal Fees and per ton Recycling Fees, or ((E1,400,000 - $398,222) X 8 0%) (c) From Step One above (d) "Index Change" multiplied by "Allowable Portion of Index Change" (e) From "Percent of Rate Revenue Net of Franchise Fees" in Step Two (f) From last column in Step Three (g) The weighted rate adjustment should be applied to the total rate, including Franchise Fee portion of the rate (h) From weighted rate adjustment in Step Four (i) Current Monthly Rate" plus "Rate Change". Note. Rate adjustment for residential service billed directly by Waste Management not shown, but the adjustment would follow the same methodology EXHIBIT 5B Commercial Bin Rates Adjustment Example Rate Adjustment Step One: Deduct franchise fees from gross rate revenue Revenue Component (including franchise fees) Gross Commercial Rate Revenue Commercial Franchise Fee (b) Commercial Rate Revenue Net of Franchise Fees RESOLUTION NO. 04-49 Step Two: Determine disposal expense, recycling fees, and service revenue as a percent of actual rate revenue net of franchise fees Revenue Component (net of Franchise Fees) Commercial Rate Revenue Net of Franchise Fees ( c) Less: Actual Commercial and MRF Bin Refuse Disposal Cost Less: Actual Commercial and MRF Bin Recycling Fees Commercial and MRF Bin Service Revenue Adjustment Factor Disposal Tipping Fee per Ton AB939 Fee per Ton Producer Price Index Step Three: Calculate percentage chance in adiustment factors Old $ 30.00 $ 8.25 140.80 New $ 34.51 $ 8.25 145.40 Index Chancy 15.0% 0.0% 3.3% Step Four. Calculate weighted percentage change in single family rates Components of Actual Revenue Refuse Disposal • Recycling Fee Service Total Service (p) (1) 3yard bin, once per week (1) 3yard bin, twice per week (1) 3yard bin, three times per week (1) 3yard bin, four times per week (1) 3yard bin, five times per week (1) 3yard bin, six per week (a) (b) (c ) (d) (e) (f) (9) (h) (i) Component Weight (el 31.3% 8.6% 60.1 % 100.0% Step Five: Apply weighted percentage chancre to single family rates Current Monthly Rate (Example Only) Weighted Rate (h1 Adjustment D. $ 76.63 5.7% $ 136.91 5.7% $ 178.58 5.7% $ 251.64 5.7% $ 312.23 5.7% $ 372.66 _ 5.7% Annual Amount $ 3,075,724.31 $ 961,867.20 $ 264,513.48 $ 1,849,343.63 Allowable Portion of Index Changs 100.0% 100.0% 50.0% Annual Amount (a) $ 3,236,537 $ 160,812 $ 3,075,724 Percent of Rate Revenue Net of Franchise Fees (Calc'd) 100.0% 31.3% 8.6% 60.1 % Rate Component Percent Change (d) 15.0% 0.0% 1.6% Rate Component Percent Change (f) Weighted Rate Adiustment 15.0% 0.0% 1.6% 4.7% 0.0% 1.0% 5.7% Rate Chanoe Adiusted Monthly Rate $ 4.36 $ 80.99 $ 7.78 $ $ 10.15 $ $ 14.30 $ $ 17.75 $ $ 21.18 $ For the twelve months ending on the date, six months prior to the effective date of the rate adjustment. For example, for a rate adjustment effective July 1, 2002, the revenue used should be for the twelve months ending December 31,2001. Franchise Fee is 8.0% of Gross Revenue less Disposal Fees and A8939 Fees, or (($1,200,000 - $534,000 - 43,823) X 8.0%) From Step One above "Index Change" multiplied by "Allowable Portion of Index Change" From "Percent of Rate Revenue Net of Franchise Fees" in Step Two From Step Three Not all rate categories are shown in this example The weighted rate adjustment should be applied to the total rate, including Franchise Fee and AB939 Fee portion of the rate. From weighted rate adjustment in Step Four (j) Current Monthly Rate" plus "Rate Change". Note: Rate adjustment for "Other Services" not shown, but the adjustment would follow the same methodology. 144.69 188.73 265.94 329.98 393.84 EXHIBIT 5C Roll Off Box Rates Adjustments Example Rate Adjustment Step One: Calculate percentage change in Producers Price Index Adjustment Factor Producer Price Index Old I 140.80 New Index Change 145.40 3.3% RESOLUTION NO. 04-49 Allowable Portion of Rate Component Percerr Index Change (a) Change (b) 50.0% 14a„0 Step Two: Apply 50% of percentage change in Producer Price Index to Service Portion of Roll -off Rates Current Monthly Rate (Example Only) Weighted Rate Service W) Adjustment (h) Rate Change Adjusted Monthly Rate (it Standard Roll -off Charge Per Load (20yd to 30yd box) (c) $ 106.76 1.6% $ 1.74 $ 108.50 Standard Roll -off Charge Per Load (40yd Box)) (c) $ 106.76 1.6% $ 1.74 $ 108.50 Compactor Charge Per Load $ 172.28 1.6% $ 2.81 $ 175.09 Relocation Charge $ 15.12 1.6% $ 0.25 $ 15.37 Delivery Charge $ 15.12 1.6% $ 0.25 $ 15.37 (a) 50% of the Percent change in PPI is allowed (b) "PPI Index % Change" multiplied by 50% (c) Excluding Disposal. Disposal is billed at actual cost on the based on the tipping fee per ton at the landfill or transfer station used by the Company, plus Recycling Fees, multiplied by the number of tons. Note: Rate adjustment for "Other Services" not shown, but the adjustment would follow the same methodology. RESOLUTION NO. 04-49 Exhibit 4 2004 Rates Residential Monthly Service Rates Individually Billed Customers Master -Billed Customers - Discounted 11% Monthly Monthly Service Rats Service Rate Automated Refuse Service - per Cart Automated Refuse Service - per Cart (first (first cart) cart) -96 Gallon Cart -64 Gallon Cart -32 Gallon Cart Manual Curbside Service - per Unit Manual Walk-in Service - per Unit Manual In -Ground Can - per Unit Subtotal: Dwelling Unit Revenue Automated Walk-in Fee - per Unit* Greenwaste Container Service $ 9.68 $ 7.74 $ 5.81 $ 10.65 $ 13.55 $ 13.55 $ 3.87 $ 1.05 For Individually or Master Billed Accounts Monthly Additional Refuse Cart - Cart Size Rate Automated 96 Gallon Cart Automated 64 Gallon Cart Automated 32 Gallon Cart - 96 Gallon Cart - 64 Gallon Cart -32 Gallon Cart Manual Curbside Service -Single Family or Multi -Family -Single Family or Multi -Family 2/week -Mobile Home Park - Per Unit Manual Walk-in Service* -Single Family or Multi -Family -Single Family or Multi -Family 2/week -Mobile Home Park - Per Unit Manual In -Ground Can Manual In -Ground Can 2/wk Automated Walk-in Fee 1 1 4.84 I 1Greenwaste Container Service 3.87 1 1 2.91 1 1 1 1 $ 8.61 $ 6.89 $ 5.17 $ 9.48 $ 12.49 $ 8.61 $ 12.06 $ 15.08 $ 11.20 $ 12.06 $ 15.08 $ 3.44 $ 0.93 *Walk-in Customers shall be charged this rate, in addition to basic service rate, for each refuse or greenwaste cart, but not for recycling carts. Disabled customers shall not be charged extra for this service. Note: Small volume commercial customers with automated carts shall pay these residential rates. RESOLUTION NO. 04-49 IMPACTS TO RESIDENTS AND COMMERCIAL BUSINESSES COMMERCIAL ACCOUNTS 2 Cubic Yards 3 Cubic Yards 4 Cubic Yards 6 Cubic Yards $ $ $ 96 GALLON CART Walk -In Service 9.31 3.73 58.18 76.63 105.34 159.39 9.86 3.95 59.05 77.78 106.92 161.78