HomeMy WebLinkAboutAgenda Report - February 16, 1994 (38)OF
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Receipt of Refuse Rate Application
MEETING DATE: February 16, 1994
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION: That the City.Council receive.the request for rate -
adjustment from Sanitary, City Disposal Company, and
refer it to staff for analysis, review and comment.
BACKGROUND: The agreement with Sanitary City Disposal Company
requires them to submit applications for rate
adjustment by February 15. I have been in contact with Mr. Vacarrezza and he
has assured me the City will receive this application prior to February 15.
In order to expedite staff's review, we are asking the City Council to
officially receive the request and refer it to staff for analysis, review and
comment, and to report back by March 16, 1994.
FUNDING: None required, Unknown, or Not applicable
Respectfully sulxnitted,
Je,,try L. Glenn
Assistant City Manager
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APPROVES - — ---- -- < - ----- ----- L�
THOMAS A PETERSON �., •.n ppr
City Momper J
CCREFUSE/TXTA.01v c;u
CAJAP Woo
—vua�e
February il. 1994
Mr. Jerry Gleam
Assistant City Manager
City of loth
City Hal
P.O. Box 3006
Lodi. Califa iia 95241
RE: California Waste Removal Systems . Rate Application
Dear Mr. Glenn:
Please find enclosed the rate review for the provision of refuse. recyclable materials. and
green waste collection. processing. transfer, and disposal services. The rate application
follows the index Year Rate Procedure specified in the rate methodology approved by the
City Council on December 4. 1991.
The application requests an 8.5% increase in residential* and commercial rates. An 8.5%
increase over the current residential one can rate of S14.70 results in an increase of $1.25
and a new rare of $15.95. As explained in the attached application, the increase is necessary
primarily due to inflationary increases and greater than anticipated participation in the new
recycling programs. The change is assumed to be effective April 1. 1994.
Plem contact me if you have any questions.
Sincerely.
David Vaocwezn
President
DV:dh
a: Thoom Peterson. City Aianager
Jack Sieglock. Mayor
A -DH 16.G*r" 1. t.rr
• .M E �iA►" ROAD -10 80u 241001 1001. CAL FLOW 95241-9501 ( 20 9) 369-8274
-.-►�,• . :r. � m .acv. � j�%
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callforn a
CALMRNU WASTE REMOVAL SYSTEMS
LODI SERVICE AREA
19% RATE APPLICATION PACKAGE
FEBRUARY 1994
1333 E. TURNER ROAD P0. BOX 241001 LODI. CALJFCRW 95241-9501
fkwted ()r- PeAlAw'd Pbcor ' W01.0
.r -
(209) 369-8274
OTHER EXPENSES:
TOTAL EXPENSES
LESS 50% OF PROJECTED CUSTOMER
BASE INCREASE
COMBINED COMPOSITE COST INDEX (CCI)
CURRENT RATE
LESS AMOUNT APPLICABLE TO 1992-1993
REVENUE DEFICIT
BALANCE SUBJECT TO PROJECTED
RATE CHANGE
PROJECTED RATE CHANGE
ADO AMOUNT APPLICABLE TO 1992-1990
REVENUE DEFICIT
PROJECTED NEW RATE
INCREASE OVER CURRENT $14.70 RATE
1.530.224 20.55%
".473.065 �%
22.000 50.00%
2.7% 05 0.55%
9.34%
1.0% #6 —0.509L
8
$14.70
(611
14.10
1.25
0.54
615,95
®�
�•r
-'CALIFORNIA
11 -Feb -94
WASTE REMOVAL SYSTE INC.
1994 RATE APPLICATION PACKAGE
1993 RATE APPLICATION EXPENSES
AND CALCULATED 1994 — 1985 PERCENTAGE INCREASES
1993-1994 1994-1995
RATE PERCENT OF RATE INDEX
CCi
APPLICATION TOTAL APPLICATION PERCENTAGE
(COMPOSITE
EXPENSE ITEM
EXPENSES EXPENSES EXPENSES CHANGE
NOTES
COST INDEX)
PAYROLL
=945,299 14AM 5.476
#1
0.49%
EQUIPMENT
479.566 7.41% —4.3%
02
—0.52%
DEPRECIATION. INTEREST. EQUIPMENT
LEASES AND DEET SERVICE
1.001.334 15.47% $1.143.590 14.2%
03
2.2096
TRANSFER STATION. DISPOSAL AND
MATERIAL PROCESSING CHARGES
2.710.620 41.97% 3.131.221 15.3%
04
6.4276
OTHER EXPENSES:
TOTAL EXPENSES
LESS 50% OF PROJECTED CUSTOMER
BASE INCREASE
COMBINED COMPOSITE COST INDEX (CCI)
CURRENT RATE
LESS AMOUNT APPLICABLE TO 1992-1993
REVENUE DEFICIT
BALANCE SUBJECT TO PROJECTED
RATE CHANGE
PROJECTED RATE CHANGE
ADO AMOUNT APPLICABLE TO 1992-1990
REVENUE DEFICIT
PROJECTED NEW RATE
INCREASE OVER CURRENT $14.70 RATE
1.530.224 20.55%
".473.065 �%
22.000 50.00%
2.7% 05 0.55%
9.34%
1.0% #6 —0.509L
8
$14.70
(611
14.10
1.25
0.54
615,95
®�
a
CALIFORNIA WASTE REMOVAL SYSTEMS, INC."
1994 RATE APPLICATION PACKAGE 0✓
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 12 month period.. -The Employment Cost Index for the period
September 1992 through September 1993, increased by 3.4%. The. 3.4% indexed
increase in payroll expenses results in a .49% Composite Cost Index.
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 month period. The CPI for gasoline for the period
November 1992 through November 1993 declined by 4.3 %. The 4.3 % indexed decline
in equipment expenses results in a -.32% Composite Cost Index component.
3. Depreciation Interest and Equipment Leases: As specified in the Index Year Rate
Procedure of the Rate Methodology, depreciation and interest expense have been updated
to include capital additions. Changes in depreciation, interest, and equipment leases for
the period April 1994 through March 1995 result in a 2.2% Composite Cost Index
component. The 2.2% Composite Cost Index component for depreciation and interest
is the result of the following capital additions:
1.2% Waste Carts: The purchase of 3,802 additional recycling and yard and garden
waste carts during 1993 and 1994 was required to meet greater than anticipated
participation in recycling programs. The purchase of 400 additional low volume
producer waste carts was required to meet the greater than anticipated demand for
the low volume producer service category approved by the City Council in
December 1992.
.3% Trucks: Inclusion of a full year of depreciation and interest on the actual cost of
trucks approved for purchase during 1993.
.6% Automated Inventory System: Purchase of an automated inventory system for
improved inventory control, customer accountability and more efficient routing.
2.2%
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. Changes in disposal, transfer and materials processing expenses result in a
6.42% Composite Cost Index Component. The 6.42% Composite Cost Index component
is the net result of the following:
-.06% Disposal Expenses: Disposal expenses have declined as a result of increased
participation in recycling and yard and garden programs. Although disposal fes
at the County landfill will increase by approximately 11% effective April 1,
1994, actual disposal costs for the City of Lodi will decline for 1994 due to the
diversion of recyclable and compostable materials. Participation in recycling and
composting programs has and will continue to result in significant avoided
disposal costs for the citizens of Lodi.
-.39% Transfer Expenses: Transfer expenses have decreased due to a decline in the
tonnage transferred for disposal. The decline in transferred tonnage is a direct
result of increased materials diversion resulting from the recycling and yard and
garden programs.
2.83% Materials Processing: Labor expenses associated with materials processing have
increased as a result of an increase in the number of tons processed for Lodi, and
as a result of the full operation of the Material Recovery Facility. MRF labor
expenses in the prior rate application included only limited operations during
construction.
1.65% Material Processing Depreciation, Interest and Equipment Maintenance:
Expenses in this category have increased to reflect a full year of the actual capital
and interest expenses associated with the MRF. The prior rate application
reflected partial year projected depreciation and interest on some items.
.95% Yard and Garden Waste Processing and Residual Transfer and Disposal: Expenses
in this category have increased primarily due to increased program participation.
1.44% Other Material Processing Costs: These costs include property taxes, utilities,
office supplies, accounting, administration, shop, and other costs related to
materials processing, and have increased as a result of increased participation in
the program and the full operation of the MRF.
6.42% Disposal. Transfer and Materials Processing Composite Cost Index
5. Other Fxpenses:. As specified in the Index Year Rate Procedure of the Rate
Methodology, all other expenses have been increased by the percentage change in the
U.S. CPI for the most recent 12 month period. The Employment Cost Index for the
period December 1992 through December 1993 increased by 2.7%. The 2.7% increase
in other expenses results in a .55 % Composite Cost Index component.
6. Projected Castomer Base Increase: As specified in the Index Year Rate Procedure of
the 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 I %, which is consistent with City growth estimates. The estimated I %
growth in customer accounts results in a -.50% Composite Cost Index component.
A:DKI&t &Rm-*#A
3
,11—FEB-94
CWRS
Residential Rate Schedule
Effective Date: April 1, 1994
20 Gal # of 38 Gal Cans
Residential Curbside Collection Service Can 1 2 3
Old Charge per Month $10.00 $14.70 $36.75 $58.80
New Charge per Month $10.85 $15.95 $39.87 $63.80
Backyard Service Charge per Month $10.00 $10.00 $10.00 $10.00
2
2
$132.90
$265.79
$568.44
$984.27
$1,513.28
$2,155.47
4
$220.52
$441.04
$865.27
$1,425.32
$2,121.17
$2,952.84
6
$308.15
$616.29
$1,162.11
$1,866.36
$2,729.05
CWRS
8
$395.77
_ cl
$1,458.93
$2,307.39
11 -FEB -94
Commercial Rate DesignI
10
$483.39
$966.78
$1,755.76
$2,748.44
$3,944.83
Proposed Rates
12
$571.02
$1,142.04
$2,052.57
$3,189.47
$4,552.72
Effective Date: April 1. 1994
14
$658.65
$1,317.29
$2,349.41
$3,630.51
Total
$6,939.68
16
$746.27
$1,492.55
$2,646.23
$4,071.56
Capacity
$7,737.05
18
Frequency / Week
$1,667.79
$2,943.07
of
$6,376.37
$8,534.42
20
$921.51
$1,843.04
$3,239.89
Containers
1
2
3
4
5
6
1
3
$171.05
$342.10
$682.90
1
$94.74
$189.48
$453.99
$831.66
$1,322.51
$1,926.54
2
$144.21
$288.43
$636.35
$1.120.08
$1,739.63
$2.494.98
3
$193.69
$387.37
$818.71
$1,408.51
$2,156.74
$3,063.43
4
$243.16
$486.30
$1,001.08
$1,696.93
$2.573.87
$3.631.87
5
$292.63
$585.25
$1,183.45
$1.985.36
$2,990.99
$4,200.33
6
$342.10
$684.19
$1,365.81
$2.273.79
$3,408.10
$4,768.77
7
$391.56
$783.14
$1,548.18
$2.562.20
$3,82522
$5,337.22
8
$441.04
$882.08
$1.730.55
$2.850.63
$4.242.34
$5,905.66
9
$490.51
$981.03
$1,912.92
$3.139.06
$4.659.46
$6,474.11
10
$539.98
$1.079.96
$2.095.27
$3,427.48
$5,076.57
$7,04255
2
2
$132.90
$265.79
$568.44
$984.27
$1,513.28
$2,155.47
4
$220.52
$441.04
$865.27
$1,425.32
$2,121.17
$2,952.84
6
$308.15
$616.29
$1,162.11
$1,866.36
$2,729.05
$3,750.20
8
$395.77
$791.54
$1,458.93
$2,307.39
$3,33&94
$4.547.57
10
$483.39
$966.78
$1,755.76
$2,748.44
$3,944.83
$5,344.94
12
$571.02
$1,142.04
$2,052.57
$3,189.47
$4,552.72
$6,142.31
14
$658.65
$1,317.29
$2,349.41
$3,630.51
$5,160.60
$6,939.68
16
$746.27
$1,492.55
$2,646.23
$4,071.56
$5,768.49
$7,737.05
18
$833.90
$1,667.79
$2,943.07
$4,512.59
$6,376.37
$8,534.42
20
$921.51
$1,843.04
$3,239.89
$4,953.63
$6,984.27
$9.331.78
3
3
$171.05
$342.10
$682.90
$1.136.89
$1,704.06
$2,384.38
6
$296.83
$593.65
$1,094.20
$1,730.55
$2,502.70
$3,410.68
9
$422.60
$845.22
$1,505.49
$2,324.20
$3,301.36
$4,436.96
12
$548.38
$1,096.77
$1.916.77
$2,917.85
$4,100.02
$5,463.26
15
$674.17
$1,348.33
$2,328.06
$3,511.51
$4,898.68
$6,489.55
18
$799.95
$1,599.88
$2,739.35
$4,105.16
$5,697.33
$7,515.84
21
$925.72
$1,851.44
$3,150.64
$4,698.82
$6,495.98
$8,542.13
24
$1,051.50
$2,103.00
$3,561.92
$5,292.47
$7,294.64
$9,568.42
27
$1,177.28
$2,354.56
$3,973.22
$5,886.12
$8,093.29
$10,594.72
30
$1,303.06
$2.606.11
$4,384.50
$6,479.78
$8,891.95
$11,621.00
CWRS
Commercial Rate Design
Proposed Rates
Eftctive Date: April 1, 1994
Total
Capacity
of
Containers 1 2
4
Frequency / Week
3 4 5
11—FEB-94
6
4
$209.21
$418.40
$797.37
$1,289.51
$1,894.82 $2,613.31
e
$373.13
$746.27
$1.323.12
$2,035.77
$2,884.25 $3,868.52
12
$537.07
$1,074.13
$1.848.87
$2,782.04
$3,873.67• $5,123.74
16
$701.00
$1,402.01
$2.374.62
$3,528.32
$4,863.09 $6.378.95
20
$864.93
$1.729.87
$2.900.36
$4,274.59
$5.852.52 $7.634.16
24
$1,028.86
$2.057.73
$3.426.11
$5.020.85
$6,841.94 $8,889.37
28
$1,19280
$2.385.60
$3,951.86
$5,767.12
$7,831.37 $10,144.59
32
$1,358.74
$2,713.46
$4,477.62
$6,513.39
$8.820.79 $11,399.80
36
$1.520.66
$3,041.33
$5.003.37
$7,259.67
$9.810.22 $12.655.01
40
$1,684.60
$3,369.19
$5.529.12
$8,005.93
$10,799.64 $13,910.24
5
5
$247.36
$494.71
$911.83
$1.442.12 $2.085.59 $2,842.23
10
$449.44
$898.88
$1.55205
$2,341.01 $3,265.78 $4,326.36
15
$651.53
$1.303.06
$2.19225
$3,239.89 $4,445.98 $5,810.51
20
$853.61
$1,707.23
$2.63246
$4.138.78 $5,626.17 $7,294.64
25
$1,055.70
$2.111.40
$3,47267
$5,037.66 $6,806.36 $8,778.78
30
$1.257.79
$2,515.57
$4,112.88
$5,936.55 $7,986.55 $10,262.91
35
$1.459.87
$2,919.75
$4,753.10
$6,835.43 $9,166.75 $11,747.05
40
$1,661.96
$3,323.92
$5,393.31
$7.734.32 $10,346.94 $13,231.19
45
$1,864.05
$3,728.09
$6,033.52
$8.633.20 $11,527.13 $14,715.31
50
$2,066.13
$4,132.26
$6,673.72
$9,53208 $12.707.32 $16,199.46
6
6
$285.52
$571.02
$1,026.30
$1,594.74 $2,276.35 $3,071.16
12
$525.75
$1.051.50
$1,780.96
$2,646.23 $3,647.32 $4,784.21
18
$765.99
$1,531.98
$2,535.64
$3,697.73 $5.018.28 $6,497.27
24
$1,006.23
$2,012.46
$3,290.30
$4,749.23 $6,389.24 $8,210.32
30
$1,246.47
$2.492.93
$4,044.98
$5,800.74 $7,760.20 $9,923.39
36
$1,486.71
$2.973.43
$4.799.66
S6,852.24 $9,131.17 $11,636.45
42
$1,726.95
$3,453.90
$5,554.32
$7,903.74 $10,502.13 $13,349.51
48
$1,967.19
$3,934.38
$6,309.00
$8,955.23 $11,873.09 $15,062.56
54
52,207.43
$4.414.86
$7.063.68
$10,006.73 $13,244.05 $16,775.62
60
$2,447.66
$4,895.34
$7,818.34
$11,058.23 $14,615.02 $18,488.69
2