HomeMy WebLinkAboutAgenda Report - March 1, 2000 E-14 PH� CITY OF ODI COUNCIL COMMUNICATION
AGENDA TITLE: Set Public Hearing for April 5, 2000, to Consider Refuse Rate Adjustment
Application from Central Valley Waste Services, Inc. (CVWS)
MEETING DATE: March 1, 2000
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council set a public hearing for April 5, 2000, to consider
the refuse rate adjustment application from Central Valley Waste
Services, Inc. (CVWS).
BACKGROUND INFORMATION: Over the past eight years, City Council has followed a rate
methodology, adopted by Council December 4, 1991, for
establishing residential and commercial refuse collection rates in the
City of Lodi. In accordance with this methodology, CVWS has
requested a rate adjustment of 1.03%, or an increase of $0.19 per month on the standard 38 -gallon
residential rate. Per the adopted methodology, this year the adjustment is based on an index formula.
The composite index is explained in the attachment. Staff is reviewing the information submitted by
CVWS. Any findings that effect the adjustment rate will be reviewed at the public hearing.
CVWS has requested the adjustment become effective April 1. Over the past years, this has normally
been the date new rates went into effect. Last year, however, the increase wasn't effective until July 1
because CVWS requested a delay due to changes in their accounting systems. Even though the new
rate was delayed three months, CVWS did not adjust the increase to account for the delay. Since there
is no March 15 Council meeting scheduled, the rate increase will be recommended to take place
immediately upon adoption.
FUNDING: Not applicable.
U0oi 14Q�4
Richard C. Prima, Jr.
Public Works Director
Prepared by Sharon Blaufus, Management Analyst II
RCP/SB/Im
Attachment
cc: Vicky McAthie, Finance Director
Central Valley Waste Services, Inc., Attn: Tom Sanchez — no attachment
APPROVED:
CSETPHRATEADJ00 H. Dixon Flynn -- Cil Manager
0211E )
February 15, 2000
Mr. Richard C. Prima, Jr.
Public Works Director
City of Lodi
P.O. Box 3006
Lodi, California 95241
Re: Central Valley Waste Services, Inc. Rate Application
Deal- Mr. Prima:
Central Valley Waste Services, Inc.
A WASTE MANAGEMENT COMPANY
1333 E. Turner Road
P.O. Box 241(1)1
Lodi, California 95241-9501
(209) 369-8274
(209) 369-6894 Fax
Attached is the 2000 Central Valley Waste Services, Inc. rate adjustment application.
The Application has been prepared in accordance with the Index Year Rate Procedures specified in
the rate methodology.
The Index Year Rate Adjustment formula results in a requested increase of 1.03% for
residential and commercial service. This calculates to a $.19 increase for basic residential services
The majority of the increase is necessary to cover inflationary increases and rising costs in fuel.
The attached application provides the details of the requested rate adjustment, the
resulting rates, as well as explanatory notes. The requested rate change is assumed to be
effective April 1, 2000.
If you have any questions, please call me.
Respectfully yours,
Thomas A. Sanchez
District General Manager
attachments
CENTRAL VALLEY WASTE SERVICES, INC.
2000 RATE APPLICATION
Explanation of Composite cost Index
1 Payroll: As specified in the Index Year Rate procedure of the Rate Methodology,
payroll expenses have been increased by the percentage change in the Employment Cost
Index for the most recent twelve month period. The Employment Cost Index for the
period December 1998 through December 1999 increased by 4.4%. The 4.4% indexed
increased in payroll expenses results in the .57% Composite Cost index component.
2 Equipment: As specified in the Index Year Rate Procedure of the Rate Methodology,
Equipment expenses have been adjusted by the percentage change in the U.S. CPI for
gasoline for the most recent 12 months period. The CPI for gasoline for the period
December 1998 through December 1999 increased by 23.2%. The 23.2% index increased
in equipment expenses results in a 1.83.% Composite Cost Index component.
3 Depreciation, Interest, Equipment Lease, and Debt Service: As specified in the
Index Year Rate Procedure of the Rate Methodology, depreciation, interest, equipment
leases and debt service have been updated include capital additions. Interest expense
decreases due to outstanding debt declines. The impact on the Composite Cost Index
is (2.40%).
4 Disposal, Transfer and Materials Processing: As specified in the Index Year Rate
Procedure of the Rate Methodology, expenses related to disposal, transfer and materials
processing have been calculated to reflect the change in the costs associated with these
functions. The increases due to CPI increases for goods and services for the period
1998 through 1999. The impact on the Composite Cost index is .93%.
5 Other expenses: As specified in the Index Year Rate Procedure of the Rate
Methodology, all other expenses have been increased by the percentage changed in the
U.S. CPI for most recent twelve month period. The U.S. CPI for the period December
1998 through December 1999 increased by 2.7%. The 2.7% increase in other expenses
results in a .60% Composite Cost Index component.
6 Projected Customer Base Increase: As specified in the Index Year Rate Procedure of the Rate
Rate Methodology, the Composite Cost index is reduced by 50% of the anticipated percentage
growth in customer accounts. The growth in customer accounts has been estimated to be 1 %.
The impact on the Composite Cost index is (.50%).
CENTRAL VALLEY WASTE SERVICES, INC.
2000 RATE APPLICATION PACKAGE
1999 DETAILED RATE APPLICATION EXPENSES
AND CALCULATED 2000 - 2001 PERCENTAGE INCREASES
1999-2000 2000-2001
RATE PERCENT OF RATE INDEX CCI
APPLICATION TOTAL APPLICATION PERCENTAGE (COMPOSI7
EXPENSEITEM
EXPENSES
EXPENSES
EXPENSES
CHANGE
NOTES
COSTINDE::;
PAYROLL:
Labor
$535,750
Labor Burden
184,060
TOTAL PAYROLL
$719,810
12.85%
4.40%
#1
0.57%
EQUIPMENT:
Repairs & Maintenance
158,028
Fuel & Oil
112,220
Equipment Leases
56,532
Tires
71,520
Licenses
42,960
Insurance, General
58.140
499,400
Less Equipment Leases
(56,532)
TOTAL EQUIPMENT
$442,868
7.90%
23.20°%
#2
1.83%
DEPRECIATION, INTEREST, EQUIPMENT
LEASES AND DEBT SERVICE:
Depreciation
$963,855
920,705
Interest
238,165
147,477
Equipment Leases
56,532
56,328
TOTAL DEPRECIATION,
INTEREST, ETC.
$1,258,552
22.46%
$1,124,510
-10.70%
#3
-2.40%
'JINSFER STATION, DISPOSAL AND ALLOCATED
AATERIAL PROCESSING CHARGES:
Transfer Station
$563,102
$578,306
Disposal Fees
704,888
$723,920
Allocated Material Processing
663,750
681,671
TOTAL TRANSFER STATION,
DISPOSAL AND ALLOCATED
MATERIAL PROCESSING
CHARGES
$1,931,740
34.47%
$1,983,897
2.70%
#4
0.93%
OTHER EXPENSES:
Property Taxes
37,980
Permits and Licenses
3,360
Administrative Expenses
570,229
Shop Expenses
306,290
Miscellaneous
28,800
Community Contributions
25,000
Franchise Fees
278,804
TOTAL OTHER EXPENSES
$1,250,463
22.32%
2.70%
#5
0.60%
TOTAL EXPENSES $51603,433
LESS 50% OF PROJECTED CUSTOMER
BASEINCREASE
COMBINED COMPOSITE COST INDEX (CCI)
CURRENT RATE
PROJECTED RATE ADJUSTMENT
^ROJECTED NEW RATE
100.00°% 1.53°%
50% 1% #6 -0.50%
1.03%
$18.37
0.19
$18.56
Central Valley Waste Services - City of Lodi Franchise
Commercial Rate Design
Proposed Rates - 1.03% Increase
Effective Date: April 1, 2000
Container
Capacity
Number
Frequency/Week
In
of
Total
Yards
Containers
Capacity
1
2
3
4
5
6
1
1
1
$83.49
$166.98
$400.08
$732.90
$1,165.46
$1,697. ',3
2
2
$127.09
$254.17
$560.78
$987.08
$1,533.05
$2,198.-1)
3
3
$170.68
$341.37
$721.50
$1,241.26
$1,900.64
$2,699.k:5
4
4
$214.28
$428.56
$882.20
$1,495.42
$2,268.22
$3,200.:;)
5
5
$257.88
$515.75
$1,042.92
$1,749.60
$2,635.82
$3,701.:: 5
6
6
$301.48
$602.95
$1,203.62
$2,003.78
$3,003.39
$4,202.-:3
7
7
$345.07
$690.15
$1,364.34
$2,257.95
$3,370.98
$4,703.- 3
8
8
$388.67
$777.33
$1,525.05
$2,512.12
$3,738.56
$5,204.::'
9
9
$432.27
$864.53
$1,685.76
$2,766.31
$4,106.16
$5,705..;'3
10
10
$475.86
$951.71
$1,846.46
$3,020.47
$4,473.73
$6,206.:'u
2
1
2
$125.12
$250.22
$535.14
$926.62
$1,424.64
$2,029., 11
2
4
$207.61
$415.20
$814.58
$1,341.84
$1,996.91
$2,779.,:-.,'
3
6
$290.10
$580.18
$1,094.04
$1,757.04
$2,569.19
$3,530.::3
4
8
$372.58
$745.18
$1,373.47
$2,172.23
$3,141.47
$4,281.9
5
10
$455.07
$910.15
$1,652.92
$2,587.44
$3,713.75
$5,031.1,J
6
12
$537.57
$1,075.14
$1,932.33
$3,002.65
$4,286.04
$5,782.:.'?
7
14
$620.07
$1,240.13
$2,211.79
$3,417.85
$4,858.31
$6,533..3
8
16
$702.55
$1,405.12
$2,491.23
$3,833.05
$5,430.59
$7,283., 4
9
18
$785.05
$1,570.10
$2,770.68
$4,248.26
$6,002.20
$8,034.• :)
10
20
$867.54
$1,735.07
$3,050.11
$4,663.46
$6,575.16
$8,785..)
3
1
3
$161.04
$322.07
$642.91
$1,070.29
$1,604.23
$2,244.:',
2
6
$279.45
$558.88
$1,030.11
$1,629.17
$2,356.10
$3,210.:�J
3
9
$397.86
$795.71
$1,417.31
$2,188.06
$3,107.98
$4,177.1,:3
4
12
$516.26
$1,032.52
$1,804.49
$2,746.93
$3,859.85
$5,143.:.]
5
15
$634.67
$1,269.35
$2,191.68
$3,305.82
$4,611.74
$6,109.= .
6
18
$753.09
$1,506.17
$2,578.89
$3,864.69
$5,363.60
$7,075.:::3
7
21
$871.49
$1,742.67
$2,966.08
$4,423.57
$6,115.46
$8,041.-,':;
8
24
$989.91
$1,979.80
$3,353.28
$4,982.46
$6,867.35
$9,007.s;j
9
27
$1,108.32
$2,216.63
$3,740.48
$5,541.33
$7,619.22
$9,974.-,-,
10
30
$1,226.73
$2,453.45
$4,127.67
$6,100.22
$8,371.08
$10,940.:.x)
Central Valley Waste Services - City of Lodi Franchise
Commercial Rate Design
Proposed Rates - 1.03% Increase
Effective Date: April 1, 2000
Container
Capacity
Number
Frequency/Week
In
of
Total
Yards
Containers
Capacity
1
2
3
4
5
6
4
1
4
$196.96
$393.89
$750.66
$1,213.98
$1,783.83
$2,460.24
2
8
$351.28
$702.55
$1,245.61
$1,916.52
$2,715.29
$3,641.92
3
12
$505.61
$1,011.22
$1,740.56
$2,619.08
$3,646.76
$4,823.60
4
16
$659.94
$1,319.88
$2,235.52
$3,321.64
$4,578.23
$6,005.29
5
20
$814.26
$1,628.53
$2,730.47
$4,024.20
$5,509.70
$7,186.98
6
24
$968.59
$1,937.20
$3,225.43
$4,726.75
$6,441.16
$8,368.66
7
28
$1,122.93
$2,245.86
$3,720.38
$5,429.31
$7,372.63
$9,550.36
8
32
$1,277.27
$2,554.52
$4,215.34
$6,131.86
$8,304.10
$10,732.04
9
36
$1,431.59
$2,863.18
$4,710.29
$6,834.43
$9,235.57
$11,913.72
10
40
$1,585.92
$3,171.83
$5,205.24
$7,536.96
$10,167.03
$13,095.42
5
1
5
$232.87
$465.74
$858.41
$1,357.65
$1,963.42
$2,675.73
2
10
$423.11
$846.22
$1,461.13
$2,203.88
$3,074.48
$4,072.93
3
15
$613.36
$1,226.73
$2,063.83
$3,050.11
$4,185.55
$5,470.15
4
20
$803.60
$1,607.22
$2,666.55
$3,896.35
$5,296.60
$6,867.35
5
25
$993.86
$1,987.72
$3,269.26
$4,742.57
$6,407.66
$8,264.54
6
30
$1,184.11
$2,368.22
$3,871.97
$5,588.80
$7,518.73
$9,661.73
7
35
$1,374.36
$2,748.72
$4,474.68
$6,435.03
$8,629.78
$11,058.94
a
40
$1,564.61
$3,129.22
$5,077.39
$7,281.27
$9,740.84
$12,456.15
9
45
$1,754.86
$3,509.71
$5,680.09
$8,127.50
$10,851.91
$13,853.35
10
50
$1,945.11
$3,890.21
$6,282.80
$8,973.72
$11,962.96
$15,250.54
6
1
6
$268.79
$537.57
$966.19
$1,501.32
$2,143.01
$2,891.26
2
12
$494.95
$989.91
$1,676.64
$2,491.23
$3,433.67
$4,503.96
3
18
$721.13
$1,442.24
$2,387.11
$3,481.13
$4,724.33
$6,116.69
4
24
$947.29
$1,894.57
$3,097.57
$4,471.03
$6,014.98
$7,729.39
5
30
$1,173.46
$2,346.90
$3,808.03
$5,460.95
$7,305.64
$9,342.11
6
36
$1,399.62
$2,799.25
$4,518.51
$6,450.86
$8,596.29
$10,954.83
7
42
$1,625.79
$3,251.59
$5,228.97
$7,440.76
$9,886.95
$12,567.53
8
48
$1,851.95
$3,703.92
$5,939.43
$8,430.67
$11,177.60
$14,180.25
9
54
$2,078.13
$4,156.26
$6,649.91
$9,420.57
$12,468.26
$15,792.96
10
60
$2,304.30
$4,608.59
$7,360.36
$10,410.47
$13,758.92
$17,405.68
CITY OF LODI
RESIDENTIAL CURBSIDE SERVICE RATES
EFFECTIVE APRIL 1, 2000
Current New Rate
1. 38 GALLON WASTE CART 1X PER WEEK:
Per Mo.
Per Mo,
Single Family
1 Waste Cart
$
18.37
$
18.56
2 Wastes Cart
$
45.91
$
46.39
3 Wastes Cart
$
73.47
$
74.22
4 Wastes Cart
$ 101.01
$ 102.05
Duplex and more, and mobile homes
1 Waste Cart per Customer
$
17.21
$
17.39
2 Waste Cart per Customer
$
43.03
$
43.47
3 Waste Cart per Customer
$
68.85
$
69.56
2. 64 GALLON WASTE CART 1X PER WEEK
1 Waste Cart $ 27.63 $ 27.91
2 Wastes Cart $ 69.06 $ 69.77
3 Wastes Cart $ 110.48 $ 111.62
3. 20 GALLON WASTE CART 1X PER WEEK
LOW VOLUME USERS
1 Waste Cart $ 12.50 $ 12.63
4. BACK YARD SERVICE CHARGE PER MONTH $ 10.34 $ 10.45
CITY OF LODI
COMMERCIAL 10 TO 50 CUBIC YARD ROLL -OFF BOX
RATE STRUCTURE SCHEDULE
EFFECTIVE APRIL 1, 2000
CONTRACT HIGH FREQUENCY DROP RATES:
1. Drop=off/Pick-up
Charge Per Box
2. Tons Disposed/Box
X Processing Charge
3. Franchise Fee (4.8% of 1+2)
TOTAL BILL (1+2+3)
ONE-TIME DROP RATE
1. Drop=off/Pick-up
Charge Per Box
2. Tons Disposed/Box
X Processing Charge
3. Franchise Fee (4.8% of 1+2)
TOTAL BILL (1+2+3)
Current New
Rate Rate
$ 127.40 $ 128.71
$ 28.69 $ 28.98
$ 208.08 $ 210.22
$ 28.69 $ 28.98
CITY OF LODI
COMMERCIAL WASTE CART RATES
EFFECTIVE APRIL 1, 2000
# of Waste Current New
Carts Rate I Rate
1 Waste Cart $18.22 1 $18.41
2 Waste Carts $45.54 $46.01
3 Waste Carts $72.85 $73.60
Current Rate
New Rate
# of Waste
1 x Wk 2x Wk
1 x Wk 2 x Wk
Carts
Rate Rate
Rate Rate
1 Waste Cart
$60.25 $120.51
$60.87 $121.75
2 Waste Carts
$120.51
$121.75
3 Waste Carts
$180.76
$182.62
CITY COUNCIL
STEPHEN 1. MANN, Mayor
ALAN S. NAKANISHI
Mayor Pro Tempore
SUSAN HITCHCOCK
KEITH LAND
PHILLIP A. PENNINO
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6706
FAX (209) 333-6710
February 24, 2000
Mr. Thomas A. Sanchez
District General Manager
Central Valley Waste Services, Inc.
P. O. Box 241001
Lodi, CA 95241-9501
H. DIXON FLYNN
City Man. :Ir
ALICE M. REIMCHE
City C . rk
RANDALL A. HAYS
City Attor ,y
SUBJECT: Set Public Hearing for April 5, 2000, to Consider Refuse Rate Adjustment
Application from Central Valley Waste Services, Inc. (CVWS)
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, March 1, 2000. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
As indicated in the title, the only action will be to set a public hearing date on the item.
If you wish to write to the City Council, please address your letter to City Council,
City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the
mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Alice Reimche, City Clerk, at 333-6702.
If you have any questions about the item itself, please call Sharon Blaufus at 333-6800,
ext. 2658.
I
I
Richard C. Prima, r.
Public Works Director
RCP/Im
Enclosure /
cc: City Clerk J
NCSETPHRATEADJ00
•. CITY OF LORI NOTICE OF PUBLIC HEARING
Date: Wednesday, April 5, 2000
Carnegie Forum
305 West Pine Street, Lodi Time: 7:00 p.m.
For information regarding this notice please contact:
Alice M. Reimche
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, April 5, 2000 at the hour of 7:00 p.m., or as soon
thereafter as the matter may be heard, the City Council will conduct a Public Hearing at the Carnegie Forum,
305 West Pine Street, Lodi, to consider the following matter:
a) refuse rate adjustment application from Central Valley Waste Services, Inc. (CVWS).
All interested persons are invited to present their views and comments on this matter. Written statements
may be filed with the City Clerk at any time prior to the hearing scheduled herein, and oral statements may
be made at said hearing.
It you challenge the subject matter in court, you may be limited to raising only those issues you or someone
else raised at the Public Hearing described in this notice or in written correspondence delivered to the City
Clerk, P.O. Box 3006, at or prior to the Public Hearing.
&�A.40 6/4)
Alice M. Rei the
City Clerk
Dated: March 1, 2000
Approved as to form:
'-e- Q ;00�e'
Randall A. Hays
City Attorney
J:\CITYCIRKIFORMSUJOTGEN.DOC 311/00