HomeMy WebLinkAboutC17230 Res 04-49 - Schedule of Fees for Solid Waste ServicesCITY OF PALM DESERT
COMMUNITY SERVICES
STAFF REPORT
REQUEST: Adopt Resolution No. 04-49 approving the new Adjusted Schedule
of Fees (Exhibit 5) for Solid Waste Services contained in Contract No.
C17230. The new Adjusted Schedule of Fees (Exhibit 5) will be effective
July 1, 2004 and November 1, 2004
SUBMITTED BY: Robert Kohn, Director of Special Programs
DATE: June 10, 2004
CONTENTS: 1. Resolution No. 04-49
2. Rate Increase Request and Calculation
3. Adjusted Rate Schedule (Exhibit 5)
Recommendation:
Adopt Resolution No. 04-49 approving the new Adjusted Schedule of Fees
(Exhibit 5) for Solid Waste Services contained in Contract No. C17230. The new
Adjusted Schedule of Fees (Exhibit 5) will be effective July 1, 2004 and November 1,
2004.
Executive Summary:
Waste Management District Manager Frank Orlett forwarded the attached rate increase
request to the City on March 30, 2004. The request includes a new adjusted Exhibit 5,
Schedule of Fees proposed to be effective July 1, 2004. Since the original request was
provided by Waste Management, Riverside County informed jurisdictions of an increase
in the landfill tipping fees. In addition to the annual PPI allowance and the increase in
landfill tipping fees, there will be an increase for disposal once the Edom Hill Transfer
Station is open for business (estimated to be November 1, 2004). Therefore, the
requested fee increase has two effective dates of July 1, 2004 (Landfill Tipping Fee and
PPI Calculation) and November 1, 2004 (Transfer Station Tipping Fees).
Discussion:
The current franchise agreement includes provisions allowing WMI to request rate
increases each year pursuant to a PPI formula. In addition, Waste Management is
allowed to pass through any increases in disposal costs. As specified in the agreement,
Staff Report
June 10, 2004
Increase in Solid Waste Fees
Resolution No. 04-49
Page 2
Waste Management, Inc., submitted their request 90 days prior to the beginning of the
new rate year (July 1, 2004). The overall calculations are correct as well as the
schedule of fees. The request is for a 1.6% increase in residential ($.55/month) and
commercial rates (varies depending on level of service).
Submitted by:
41 ,t1,-
ROBERT KOHN
DIRECTOR, SPECIAL PROGRAMS
Approval:
CARLOS ORTEGA/2'ITY MANAGER
PAUL GIBSON, FINANCE DIRECTOR
rt
/
SHEILA GILL GAN
ASSISTANT CITY 'TTNAGER
COMMUNITY SERVICES
RESOLUTION 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 day of -, 2004,
by the City Council of the City of Palm Desert, California, by the following
vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Robert A. Spiegel, Mayor
ATTESTED:
RACHELLE KLASSEN
CITY CLERK
CITY OF PALM DESERT
EXHIBIT 5
RIVERSIDE COUNTY DISPOSAL RATE INCREASE OF S.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
: Deduct franchise fees from gross rate revenue
Revenue Component (Mcluding franchise fees)
Annual Amount (a)
Gross Residential Rate Revenue
$
2,495,104
Residential Franchise Fee (b)
$
151.852
Residential Rate Revenue Net of Franchise Fees
$
2.343,252
• petennlne disposal expense recycling fees and service revenue as a percent of actual rate revenue net of franchise fees
Revenue Component (net of Franchise Fees)
Annual Amount
Percent of Rate Revenue Net
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 Recycling Fees
$ 128,754.53
27.5%
Residential Service Revenue
$ 1,746,299.60
52.5%
ad)usimsnt factors
Allowable Portion of
Rate Component Percent
Adjustment Factor
Old
New
Index Change
Index Change
Change (d)
Disposal Tipping Fee per Ton
30.00
$ 30.54
1.8%
100.0%
1.8%
Recycling Fee per Ton
$ 8.25
$ 8.25
0.0%
100.0%
0.0%
Producer Price Index
140.80
145.40
3.3%
50.0%
1.6%
In single family rates
Components of Actual Revenue
Component
Weight (e)
Rate Component
Percent Change (1)
Weighted Rate Adjustment
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%
Five: Apply weighted percentage chance to single family rates
Service
Current
Monthly Rate
(Example Only)
(g)
WelgMed Rate
Adjustment (h)
Rate Change
Adjusted Monthly Rate (I)
96 Gallon Automated Cart Collection, Tax Roll
Walk-in Service Fee premium
$ 9.31
$ - 3.73
1.2%
1.2%
$ 0.11
$ 0.05
$ 9.42
$ 3.78
(a)
For the twelve months ending on the date, sox months poor 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
Revenue Component (including franchise fees)
Annual Amount (a)
Gross Commercial Rate Revenue
$
3,236.537
Commercial Franchise Fee (b)
$
160,812
Commercial Rate Revenue Net of Franchise Fees
$
3,075,725
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)
Annual Amount
Percent of Rate Revenue Net
of Franchise Fees (Calc'd)
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 percentage change in adjustment factors
Allowable Portion of
Rate Component Percent
Adjustment Factor
Old
New
Index Change
Index Change
Change (d)
Disposal Tipping Fee per Ton
$ 30.00
$ 30.54
1.8%
100.0%
1.8%
AB939 Fee per Ton
$ 8.25
S 8.25
0.0%
100.0%
0.0%
Producer Price Index
140.80
145.40
3.3%
50.0%
1.6%
Step Four. Calculate weighted percentage change in single family rates
Components of Actual Revenue
Component
Weight (e)
Rate Component
Percent Change (f)
Weighted Rate Adjustment
Refuse Disposal
Recycling Fee
Service
31.3%
8.6%
60.1%
1.8%
0.0%
1.6%
0.6%
0.0%
1.0%
Total
100.0%
1.5%
Step Five: Apply weighted percentage change to single family rates
Current
Monthly Rate
(Example Only)
Weighted Rate
Service (g)
(h)
Adjustment (I)
Rate Change
Adjusted Monthly Rate (j)
(1) 3yarct 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) 3yard bin, six per week
S 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" mukiplied 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 Producer's Price Index
Adjusbnent Factor
Old
New
Index Change
Allowable Portion of
Index Change (a)
Rate Component Percent
Change (b)
Producer Price Index
140.80
145.40
3.3%
50.0%
1.6%
Step Two: Apply SO% of percentage change in Producer Price Index to Service Portion of Roll -off Rates
Current
Monthly Rate
(Example Only)
Weighted Rate
Service
(g)
Adjustment (h)
Rate Change
Adjusted Monthly Rate (i)
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.
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
Exhibit 4
2004 Rates
Commercial Service Rates
Commercial Bin Collection
Refuse Bin Rates -
Container Size
Pickups per Week
1
2
3
4
5
6
2 Cubic Yards
$ 59.05
$ 103.54
$ 148.38
$ 192.73
$ 237.41
$ 310.79
3 Cubic Yards
$ 77.78
$ 138.96
$ 181.26
$ 255.42
$ 316.91
$ 378.25
4 Cubic Yards
$ 106.92
$ 179.44
$ 254.36
$ 329.57
$ 404.50
$ 473.55
6 Cubic Yards
$ 161.78
$ 272.39
$ 386.68
$ 500.88
$ 605.25
$ 720.71
Greenwaste Bin or Food Waste Bin Rates - 75% of refuse bin rates.
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
$ 102.44
Compactor Pull Charge
$ 174.05
Landfill Disposal Charge
actual cost (a)
Greenwaste 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 $30.54 per ton) and the City's recycling fee of $8.25 per ton.
(b) The disposal charge is currently $15.52, subject 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
Exhibit 4
2004 Rates
Residential Monthly Service Rates
Individually Billed Customers
Master Billed Customers Discounted 11%
s
Service
Wirth
Rate
.
M A max „ t
_ _ ' Y �, rvice m
Monthly
' Rate
Automated Refuse Service - per Cart
(first cart)
Automated Refuse Service - per Cart (first
cart)
-96 Gallon Cart
$ 9.43
-96 Gallon Cart
$ 8.39
-64 Gallon Cart
$ 7.54
-64 Gallon Cart
$ 6.72
-32 Gallon Cart
$ 5.66
-32 Gallon Cart
$ 5.03
Manual Curbside Service - per Unit
$ 10.37
Manual Curbside Service
$ 9.23
-Single Family or Multi -Family
$ 12.17
Manual Walk-in Service - per Unit
$ 13.20
-Single Family or Multi -Family 2/week
$ 8.39
-Mobile Home Park - Per Unit
Manual In -Ground Can - per Unit
$ 13.20
Manual Walk-in Service*
Subtotal: Dwelling Unit Revenue
-Single Family or Multi -Family
$ 11.75
-Single Family or Multi -Family 2/week
$ 14.69
Automated Walk-in Fee - per Unit*
$ 3.77
-Mobile Home Park - Per Unit
$ 10.90
Greenwaste Container Service
$ 1.02
Manual In -Ground Can
$ 11.75
Manual In -Ground Can 2/wk
$ 14.69
For Individually or Master Billed Accounts
f ° ...
Additional Refuse Cart' Cart S¢e"
Mon thly
Rate
Automated Walk-in Fee
$ 3.35
Automated 96 Gallon Cart
$ 4.72
Greenwaste Container Service
$ 0.91
Automated 64 Gallon Cart
$ 3.77
Automated 32 Gallon Cart
$ 2.83
*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.
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
Revenue Component (including franchise fees)
Gross Residential Rate Revenue
Residential Franchise Fee (b)
Residential Rate Revenue Net of Franchise Fees
$
$
$
Annual Amount (a)
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
Revenue Component (net of Franchise Fees)
Annual Amount
Percent of Rate Revenue Net
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 Recycling Fees
$ 128.754.53
27.5%
Residential Service Revenue
$ 1,746.299 60
52.5%
Step Three: Calculate percentage change in adjustment factors
Allowable Portion of
Rate Component Percent
Adjustment Factor
Old
New
Index Change
Index Change
Change (d)
Disposal Tipping Fee per Ton
30.00
$ 30.00
0.0%
100 0%
0 0%
Recycling Fee per Ton
$ 8.25
$ 8.25
0.0%
100.0 %
0.0%
Producer Price Index
140.80
145.40
3.3%
50.0%
1.6%
Step Four, Calculate weighted percentage chance In single famlly rates
Components of Actual Revenue
Component
Weight (e)
Rate Component
Percent Change (f)
Weighted Rate Aduustment
Refuse Disposal
20.0%
0.0%
0.0%
Recycling Fee
27.5%
0.0%
0.0%
Service
52.5%
1.6%
0 9%
Total
100.0 %
0.9%
Step Five: Apply wefchted percentage chance to al le famllv rates
Service
Current
Monthly Rate
(Example Only)
(g)
Weighted Rate
Adjustment (h)
Rate Change
Adjusted Monthly Rate (I)
96 Gallon Automated Cart Collection. Tax Roll
Walk-in Service Fee premium
$ 9.31
$ 3.73
0.9%
0.9%
5 0.08
$ 0.03
S • 9.39
$ 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 - $398,222) X 8 0%)
(c) From Step One above
(d) "Index Change" muttiphed 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" pals "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)
Annual Amount (a)
Gross Commercial Rate Revenue
Commercial Franchise Fee (b)
Commercial Rate Revenue Net of Franchise Fees
3,236,537
160,812
3,075,725
Inc disposal expense, recycling fees, and service revenue as a percent of actual rate revenue net of franchise fees
Revenue Component (net of Franchise Fees)
Annual Amount
Percent of Rate Revenue Net
of Franchise Fees (Calc'd)
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 percentage change in adjustment factors
Allowable Portion of
Rate Component Percent
Adjustment Factor
Old
New
Index Change
Index Change
Change (d)
Disposal Tipping Fee per Ton
$ 30.00
$ 30.00
0.0%
100.0%
0.0%
AB939 Fee per Ton
$ 8.25
$ 8.25
0.0%
100.0%
0.0%
Producer Price Index
140.80
145.40
3.3%
50.0%
1.6%
Step Four, Calculate weighted percentage change in single family rates
Components of Actual Revenue
Component
Weight (e)
Rate Component
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%
Total
100.0%
1.0%
Step Five: Appy weighted percentage change to single familv rates
Current
Monthly Rate
(Example Only)
Weighted Rate
Service (g)
(h)
Adjustment (i)
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 a 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
Adjustment Factor
Old
New
Index Change
Allowable Portion of
Index Change (a)
Rate Component Percent
Change (b)
Producer Price Index
140.80
145.40
3.3%
50.0%
1.6%
Step Two: Appy 509E of percentage change in Producer Price Index to Service Portion of Roll of R
Current
Monthly Rate
(Example Only)
Weighted Rate
Service
(g)
Adjustment (h)
Rate Change
Adjusted Monthly Rate (i)
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 biped 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.
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 load 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
Commercial Service Rates
Commercial Bin Collection
Refuse Bin Rates -
Container Size
PickuFs
per Week
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
4 Cubic Yards
$ 106.39
$ 178.55
$ 253.11
$ 327.95
$ 402.51
$ 471.22
6 Cubic Yards
$ 160.99
$ 271.05
$ 384.78
$ 498.42
$ 602.27
$ 717.16
Greenwaste Bin or Food Waste Bin Rates - 75% of refuse bin rates.
Rollof and Compactor Services
Roll -off and Compactor rates are pull plus disposal plus delivery charge for initial delivery if applicable
Description
Rate Per
Rate Per Tlon orl
Standard Refuse Pull Charge
$ 108.47
Standard Greenwaste / Construction & Demolition Pull Charge
$ 102.44
Compactor Pull Charge
$ 174.05
Landfill Disposal Charge
actual cost (a)
Greenwaste 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, subject to an annual inflationary adjustment per contract with Cafrfomia 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
Exhibit 4
2004 Rates
Residential Monthly Service Rates
Individually Billed Customers
Master -Billed Customers - Discounted 11%
>�
:..,. genrice .:
Mon
thly Rate
=
. ;� ;�r r , �<
Monthly
Rate':
Automated Refuse Service - per Cart
(first cart)
Automated Refuse Service - per Cart (first
cart)
-96 Gallon Cart
$ 9.40
-96 Gallon Cart
$ 8.36
-64 Gallon Cart
$ 7.52
-64 Gallon Cart
$ 6.70
-32 Gallon Cart
$ 5.64
-32 Gallon Cart
$ 5.02
Manual Curbside Service - per Unit
$ 10.34
Manual Curbside Service
$ 9.21
-Single Family or Multi -Family
$ 12.13
Manual Walk-in Service - per Unit
$ 13.16
-Single Family or Multi -Family 2/week
$ 8.36
-Mobile Home Park - Per Unit
$ -
Manual In -Ground Can - per Unit
$ 13.16
Manual Walk-in Service*
Subtotal: Dwelling Unit Revenue
-Single Family or Multi -Family
$ 11.72
-Single Family or Multi -Family 2/week
$ 14.64
Automated Walk-in Fee - per Unit*
$ 3.76
-Mobile Home Park - Per Unit
$ 10.87
Greenwaste Container Service
$ 1.02
Manual In -Ground Can
$ 11.72
Manual In -Ground Can 2/wk
$ 14.64
For Individually or Master Billed Accounts
Additional Refuse Cart Cart Size
Monthly
Rate
Automated Walk-in Fee
$ 3.34
Automated 96 Gallon Cart
$ 4.70
Greenwaste Container Service
$ 0.90
Automated 64 Gallon Cart
$ 3.76
Automated 32 Gallon Cart
$ 2.82
*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.
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
Step One: Deduct franchise fees from gross rate revenue
Gross Residential Rate Revenue
Residential Franchise Fee (b)
Residential Rate Revenue Net of Franchise Fees
Revenue Component (Inctudingf anchlse Tees)
$
$
Annual Amount (a)
2.495,104
151.852
2.343,252
• Determine disposal expense recycling fees and service revenue as a percent of actwl rate revenue net of franchise fees
Revenue Component (net of Franchise Fees)
Annual Amount
Percent of Rate Revenue Net
of Franchise Fees (Calc'd)
Residenttai 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 Recycling Fees
$ 128,754.53
27.5%
Residential Service Revenue
$ 1,746.299.47
52 5%
•
Allowable Portion of
Rate Component Percent
Adjustment Factor
Old
New
Index Change
Index Change
Change (d)
Disposal Tipping Fee per Ton
30 00
$ 34.51
15.0%
100 0%
15.0%
Recycling Fee per Ton
$ 8.25
$ 8.25
0.0%
100.0%
0.0%
Producer Price Index
140.80
145.40
3.3%
50 0%
1.6%
•Calculate weighted percentage change In single family rates
Components of Actual Revenue
Component
Weight (e)
Rate Component
Percent Change (1)
Weighed Rate Adjustment
Refuse Disposal
20.0%
15 0%
. 3 0%
Recyding Fee
27.5%
0.0%
00%
Service
52.5%
1.6%
0.9%
Total
100.0%
3 9%
•Apply weighed percentage change to single family rates
Service
Current
Monthly Rate
(Example Only)
(g)
Weighed Rate
Adjustment (h)
Rate Change
Adjusted Monthly Rate (i)
96 Gallon Automated Cart Collection. Tax Roll
Walk-in Service Fee premium
$ 9.31
$ 3.73
3.9%
3.9%
$ 0.36
$ 0.14
$ 9.67
$ 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 fess Disposal Fees and per ton Recycling Fees, or (($1,400,030 - $398,222) X 8.0%)
(c) From Step One above
(d) "Index Change" multiplied by "Allowable Portion o1 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)
Annual Amount (a)
Gross Commercial Rate Revenue
$
3.236.537
Commercial Franchise Fee (b)
$
160.812
Commercial Rate Revenue Net of Franchise Fees
$
3,075.724
rmine disposal expense , recycling fees, and service revenue as a percent of actual rate revenue net of franchise fees
•
Revenue Component (net of Franchise Fees)
Annual Amount
Percent of Rate Revenue Net
of Franchise Fees (Calc'd)
Commercial Rate Revenue Net of Franchise Fees (c)
$ 3.075,724.31
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
$ 1,849,343.63
60.1%
Step Three: Calculate percentage change in adjustment factors
Allowable Portion of
Rate Component Percent
Adjustment Factor
Old
New
Index Change
Index Change
Change (d)
Disposal Tipping Fee per Ton
$ 30.00
$ 34.51
15.0%
100.0%
15.0%
AB939 Fee per Ton
$ 8.25
$ 8.25
0.0%
100.0%
0.0%
Producer Price Index
140.80
145.40
3.3%
50 0%
1.6%
Step Four: Calculate weighted percentage change in single family rates
Components of Actual Revenue
Component
Weight (e)
Rate Component
Percent Change (f)
Weighted Rate Adjustment
Refuse Disposal •
31.3%
15.0%
4.7%
Recycling Fee
8.6%
0.0%
0.0%
Service
60.1%
1.6%
1.0%
Total
100.0%
5.7%
Step Five: Apply weighted percentage change to single family rates
Current
Monthly Rate
(Example Only)
Weighted Rate
Service (g)
(h)
Adjustment (I)
Rate Change
Adjusted Monthly Rate Q)
(1) 3yard bin, once per week
$ 76.63
5.7%
$ 4.36
$ 80.99
(1) 3yard bin, twice per week
$ 136.91
5.7%
$ 7.78
$ 144.69
(1) 3yard bin, three times per week
$ 178.58
5.7%
$ 10.15
$ 188.73
(1) 3yard bin, four times per week
$ 251.64
5.7%
$ 14.30
$ 265.94
(1) 3yard bin, five times per week
$ 312.23
5.7%
$ 17.75
$ 329.98
(1) 3yard bin, six per week
$ 372.66
5.7%
$ 21.18
$ 393.84
(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 al 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
New
Index Change
Allowable Portion of
index Change (a)
Rate Component Percent
Change (b)
Producer Price Index
140.80
145.40
3.3%
50.0%
1.6%
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
(g)
Adjustment (h)
Rate Change
Adjusted Monthly Rate (1)
Standard Rollotf 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.
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 load 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
Commercial Service Rates
Commercial Bin Collection
Refuse Bin Rates -
Container Size
Pickups per Week
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.
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 1 Construction & Demolition Pull Charge
$ 103.02
Compactor Pull Charge
$ 175.04
Landfill Disposal Charge
actual cost (a)
Greenwaste 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 $34.51 per ton) and the City's recycling fee of $8.25 per ton.
(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
Exhibit 4
2004 Rates
Residential Monthly Service Rates
Individually Billed Customers
Master -Billed Customers - Discounted 11%
'..... :Service _
Monthly:
.. Rate
_s"
Y
, ,�' n
.. `Service =t .
Monthly
Rate
Automated Refuse Service - per Cart
(first cart)
Automated Refuse Service - per Cart (first
cart)
-96 Gallon Cart
$ 9.68
-96 Gallon Cart
$ 8.61
-64 Gallon Cart
$ 7.74
-64 Gallon Cart
$ 6.89
-32 Gallon Cart
$ 5.81
-32 Gallon Cart
$ 5.17
Manual Curbside Service - per Unit
$ 10.65
Manual Curbside Service
$ 9.48
-Single Family or Multi -Family
$ 12.49
Manual Walk-in Service - per Unit
$ 13.55
-Single Family or Multi -Family 2/week
$ 8.61
-Mobile Home Park - Per Unit
Manual In -Ground Can - per Unit
$ 13.55
Manual Walk-in Service*
Subtotal: Dwelling Unit Revenue
-Single Family or Multi -Family
$ 12.06
-Single Family or Multi -Family 2/week
$ 15.08
Automated Walk-in Fee - per Unit*
$ 3.87
-Mobile Home Park - Per Unit
$ 11.20
Greenwaste Container Service
$ 1.05
Manual In -Ground Can
$ 12.06
Manual In -Ground Can 2/wk
$ 15.08
For Individually or Master Billed Accounts
Additional Refuse Cart - Cart Size--
Monthly
Rate
Automated Walk-in Fee
$ 3.44
Automated 96 Gallon Cart
$ 4.84
Greenwaste Container Service
$ 0.93
Automated 64 Gallon Cart
$ 3.87
Automated 32 Gallon Cart
$ 2.91
*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.
IMPACTS TO RESIDENTS AND COMMERCIAL BUSINESSES
COMMERCIAL ACCOUNTS
Refuse Bin Rates
Current Rate
November Rate
Container Size
Pickups per Week
Pickups per Week
1
1
2 Cubic Yards
$ 58.18
59.05
3 Cubic Yards
$ 76.63
77.78
4 Cubic Yards
$ 105.34
106.92
6 Cubic Yards
$ 159.39
161.78
RESIDENTIAL ACCOUNTS
Current Rate
November Rate
96 GALLON CART
9.31
9.86
Walk -In Service
3.73
3.95