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HomeMy WebLinkAboutAGENDA REPORT 1992 1216 CC REG ITEM 11E.. ,: MOORPARk'F. 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 M E M O R A N D U M OORPARK, CALIFORNIA City Council Meeting of / - - A /6 199 �P-- ACTION: u-K'-,',/- TO: Honorable City Council FROM: Mary K. Lindley, Assistant to the City Manager1 DATE: December 8, 1992 (CC meeting of December 16) SUBJECT: Consider Residential Refuse Rate Increase Effective January 1, 1993 Summary Pursuant to the City's contract with its residential refuse haulers, staff conducted a review of the monthly service rates. Council is being asked to approve Resolution 92 -� increasing the rate by $0.40, effective January 1, 1993. Background As required by the residential refuse contracts, the haulers submitted 1993 rate increase requests in writing to the City. The currently rate for residential refuse service is $14.00 per month. There was no rate increase or adjustment in 1992. Staff conducted a rate review and concluded that an increase of $0.40 was justified for 1993. The formula for determining an adjustment of the monthly residential refuse rate is calculated by combining three cost components, weighted to reflect the representative proportion of overall operating expenses. The cost components are as follows: • Producer Price Index (PPI): The percentage change in the PPI for All Commodities from October 1 of the previous year to September 30 of the current year. The relative weight of this component is determined by subtracting the sum of the percentages attributable to the other two components from 100°x. The weight of the commodity grouping for fuels, expressed as a percentage of All Commodities, is subtracted from 1000. This component is 58.7% of the overall operating expenses. PAUL W LAWRASON JR. JOHN E WOZNIAK SCOTT MONTGOMERY BERNARDO M PEREZ ROY E TALLEY JR Mayor Mayor Pro Tern Councilmember Councilmember Councilmember Pnntea On Recycled Paper Residential Refuse Rate Increase December 8, 1992 Page 2 Diesel Fuel: The percentage change in the average cost of diesel fuel plus all applicable taxes during October 1 of the previous year and September 30 of the current year. The relative weight of this component is determined by multiplying the percentage change of fuel costs by the percentage of the annual operating expenses attributable to the cost of fuel. This component is 2.1% of the overall operating expenses. Dump Fees: The percentage change in dump fees experienced from the pervious year to the current year based upon prices per cost allocation unit as determined by the Simi Valley Landfill. The relative weight of this component is determined by multiplying the percentage change in dump fees by the percentage of annual operating expenses attributable to dump fees. This component is 39.2% of the overall operating expenses. * * (Should the stipulated price change fail to be implemented by the landfill by the January 1 deadline, and rate adjustment approved by Council shall be subject to change.) The percentage change of the three components is as follows: PPI .8% Fuel <.2 %> Dump Fees 2.1% Based upon annual operating expenses submitted quarterly by the haulers to the City, both haulers are entitled to an increase of $0.38. The residential refuse contracts state that adjustments to the rate will be rounded up or down to the nearest five cents ($.05), bringing the total monthly increase to $0.40. If approved by Council, the residential rate in 1993 will be $14.40. The City's residential refuse contract with its haulers identifies multi - family customers as those living in multi - family units but receiving single container service, identical to that of single family customers. When the City implemented the franchise agreement, multi - family customers were charged less than single family customers. The decision was made to increase the multi- family rate incrementally each year until it equals the single Residential Refuse Rate Increase December 8, 1992 Page 3 family rate. The contract states that in January 1, 1993, notwithstanding any annual rate increase, the $10.81 multi - family residential rate will be increased by $.91. This increase will take effective on January 1, 1993, in addition to any rate increase approved by Council. The rate review conducted by staff in 1991 showed that costs actually decreased by $.01. Since the contract states that any adjustment will be rounded to the nearest five cents, no adjustment was made to the rate. Staff is still in the process of reviewing the hauler's request for an increase to the monthly residential recycling fee. A recommendation will be presented to Council in January. Upon review and discussion, the Public Works, Facilities and Solid Waste Committee ( Montgomery, Wozniak) concurred with staff's recommendation. Recommendation Staff and the Public Works, Facilities and Solid Waste Committee recommend that Council approve Resolution 92- increasing residential refuse rates by $0.40 per month effective January 1, 1993. attachment