HomeMy WebLinkAboutAGENDA REPORT 1994 1207 CC REG ITEM 11GITEM
A G E N D A R E P O R T
City of Moorpark Ry
TO: The Honorable City Council
FROM: Jill R. Myers, Solid Waste coordinator
DATE: November 30, 1994 (CC Meeting of December 7, 1994)
SUBJECT: Consider Residential Refuse Rate Increase and Resolution
94- for the Purpose of Updating Solid Waste Management
Fees and Services, Rescinding Resolutions 94 -1012 and 92-
871.
SUMMARY
Pursuant to the City's contract with its residential refuse haulers
(Anderson Rubbish and G.I. Rubbish), and the haulers' request for
a refuse and recycling rate increase, staff conducted a review of
the monthly service rates. The City Council is being asked to
consider increasing the monthly residential refuse rate by $0.20,
effective January 1, 1995.
Both haulers have also requested a monthly increase to the
recycling rate ($1.70/1.40 senior rate) . G.I. is requesting a
$0.28 per household monthly recycling increase and Anderson is
requesting a $0.49 per household monthly recycling increase. At
this time staff is unable to make a recommendation for a recycling
rate increase. The haulers are continuing to provide back -up
information and staff needs additional time to evaluate this
request.
The City Council is also being asked to consider approval of
Resolution 94 - , updating solid waste management fees. The
proposed resolution updates only the refuse rates (base rates) for
the single - family residents and multi - family residential (barrel)
customers. The other solid waste management fee schedules
(residential recycling fee, AB 939 fee, Solid Waste
Management/ Exemption fee, and Temporary Refuse Collection permit
fee) have not changed and are included in order to combine all
waste management fee schedules into one resolution.
BACKGROUND
On November 15, 1994, the residential refuse haulers submitted a
request for a residential refuse and recycling rate increase. Both
haulers have requested a $0.20 monthly increase.
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Honorable City Council
Residential Refuse Rate Review
Page 2
Refuse rate
The formula for determining an adjustment to the monthly
residential refuse rate is calculated by combining three cost
components - the Producer Price Index (PPI), Simi Valley Landfill
Rate, and Diesel Fuel average cost per gallon. The above costs are
weighted to reflect the representative portion of overall expenses
for each hauler. The percentage change of the three components is
as follows:
PPI: .0187%
Fuel: .0003
Landfill fees: 0
Attached, you will find staff's calculations for each hauler.
As you are aware, the 1994 rate increase was prorated over ten
months due to the delays experienced in calculating the 1994 rate
review (uncertain landfill rate increase, hauler billing cycles,
and appropriate notice to the residents).
For example, the $0.10 monthly increase last year amounted to $1.20
per year per resident, and the $0.05 increase to the senior rate
amounted to $0.60 per year per resident. Applying the annual
increase ($1.20) over a ten month duration amounted to $0.12 from
March 1 through December 31, 1994. Additionally, applying the
annual increase to the senior rate over a ten month duration
amounted to $0.06. Dividing the amount of the annual increase
($1.20 and $0.60) by ten months versus twelve months applies only
to the 1994 rate review.
Future rate increase are to be calculated based on the ten cent
($0.10) monthly increase to the base rate ($14.50), and the five
cent ($0.05) increase to the senior base rate ($11.55).
Although the haulers are requesting a $0.20 increase to the base
rate ($14.50) and $0.15 to the senior base rate (11.55), the
proposed increase if approved will amount to $0.18 per month,
taking into account the 1994 prorated base rate of $14.52 and $0.14
for the senior prorated base rate of $11.56. The residential
refuse contracts state that adjustments to the rate will be rounded
up or down to the nearest five cents ($0.05). Thus the proposed
monthly household increase is twenty cents ($0.20) (fifteen cents
for seniors). However, as mentioned above the proposed rate
increases will be applied to the prorated base rates. Actual
monthly increases proposed are $0.18 and $0.14.
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Honorable City Council
Residential Refuse Rate Review
Page 3
The proposed monthly increases also apply to all multi- family
residential customers (Zones I - III) receiving single container
service, notwithstanding any incremental increases. As you recall,
upon franchising for residential solid waste collection services,
the rates for the multi - family residential customers varied by
zones. It was negotiated that Zones II and III would receive
incremental increases until 1995 in order for those solid waste
base rates to equal those of Zones I. Per the franchise agreement,
Zone III is due to receive its final incremental increase ($0.91)
in 1995. Any annual rate increases resulting from the rate review
findings are applied in addition to the incremental increases.
Please refer to the attached summary of current and proposed
monthly rates.
CONCLUSION
If approved by the City Council, the actual single family
residential refuse rate in 1994 will be increased by $0.18
amounting to $17.40 ($14.70 base refuse rate, and no change to the
$1.00 AB 939 fee, and $1.70 recycling fee).
The senior refuse rate will be increased by $0.14 amounting to
$14.10 ($11.70 base refuse rate, and no change to the $1.00 AB 939
fee and $1.40 recycling fee). Approximately 275 seniors (4% of the
total residential accounts) receive this reduced rate.
Attached, you will find Resolution 94- outlining the proposed
monthly residential solid waste collection rates and current waste
management fee schedules.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the residential refuse rate increase effective January
1, 1995, as outlined in the staff report.
2. Adopt Resolution 94- for the Purpose of Updating Solid
Waste Management Fees and Services, Rescinding Resolutions 94-
1012 and 92 -871.
Attachments
004.04
RESIDENTIAL REFUSE /RECYCLING RATES
Single - family
Monthly Fee $13.95
PROPOSED 1995 RATE
$14.70 (1994 prorated rate = $14.52)
same
same
$17.40 ($0.20 increase)
$11.70 (1994 prorated rate = $11.56)
same
same
$14.10 ($0.15 increase)
Multi - family barrel rates for Zones I - III
Zone I CURRENT RATE PROPOSED RATE
Villa Del Arroyo
Base Rate $14.04 $14.24
Recycling $ 1.50 same
AB 939 $ .50 same
Monthly Fee $16.04 $16.24 ($0.20 increase)
Zone II
Tract # 3049 Varsity Park Estates
Base Rate $14.04 $14.24
Recycling $ 1.70 same
AB 939 $ 1.00 same
Monthly Fee $16.74 $16.94 ($0.20 increase)
Zone III
Tract # 3070 and 4170 Varsity Park Patio Homes
Base Rate $13.13 $14.24
Recycling $ 1.50 same
AB 939 $ .50 same
Monthly Fee $15.13 $16.24 ($1.11 increase)
(1) Received $0.91 incremental increase effective 111194. Zone III
will receive the final $0.91 incremental increase 111195.
00 '07
CURRENT RATE
Base Rate
$14.50
Recycling
$ 1.70
AB 939
$ 1.00
Monthly Fee
$17.20
Senior Citizen
Single- family
Base Rate
$11.55
Recycling
$ 1.40
AB 939
$ 1.00
Monthly Fee $13.95
PROPOSED 1995 RATE
$14.70 (1994 prorated rate = $14.52)
same
same
$17.40 ($0.20 increase)
$11.70 (1994 prorated rate = $11.56)
same
same
$14.10 ($0.15 increase)
Multi - family barrel rates for Zones I - III
Zone I CURRENT RATE PROPOSED RATE
Villa Del Arroyo
Base Rate $14.04 $14.24
Recycling $ 1.50 same
AB 939 $ .50 same
Monthly Fee $16.04 $16.24 ($0.20 increase)
Zone II
Tract # 3049 Varsity Park Estates
Base Rate $14.04 $14.24
Recycling $ 1.70 same
AB 939 $ 1.00 same
Monthly Fee $16.74 $16.94 ($0.20 increase)
Zone III
Tract # 3070 and 4170 Varsity Park Patio Homes
Base Rate $13.13 $14.24
Recycling $ 1.50 same
AB 939 $ .50 same
Monthly Fee $15.13 $16.24 ($1.11 increase)
(1) Received $0.91 incremental increase effective 111194. Zone III
will receive the final $0.91 incremental increase 111195.
00 '07
RESIDENTIAL COLLECTION RATE ADJUSTMENT
October 1, 1993 through September 30, 1994
ANDERSON RUBBISH
Residential Refuse
Hauler Request: $ .20 rate adjustment to regular base ($14.50) rate
$ .15 rate adjustment to senior citizen base ($11.55) rate
Staff's Findings: $ .20 rate adjustment to regular base rate
$ .15 rate adjustment to senior citizen base rate
STAFF'S CALCULATIONS: (Based on Quarterly Reports submitted by the hauler)
Total Expenses: $483,740 10/1 /93 - 9/30/94 (45% increase from 92/93)
Weighted Elements by Percentage of Operating Expenses:
Landfill $152,358= 31.5.% of Operating Expenses
Fuel $ 11,803=
2.0% of Operating Expenses
Other $319,579=
66.5% of Operating Expenses (75% increase from 92/93)
$483,740=
100%
I. Producer Price Index (PPI):
10/1/93 = 118.7 =
9/30/94 = 120.9 =
Adjusted % (removing fuel)= .0187 X.665=
.012 increase change to % Op. Expenses
II. Simi Valley Landfill Rate:
1993 1994
$35.95 cu \yd $35.95 cu \yd
= No Change
III. Diesel Fuel:
Av. Cost/Gallon: 10/92 - 10/93
$1.239
10/93-9/94
$1.241 = $ .002 or increase change= .002 X .002=
.000004 change
to % Op. Expenses
IV. Rate Adjustment Allowance
PPI ADJUSTED LANDFILL ADJUSTED FUEL ADJUSTED
% change % change
% change
.012 + 0
+ .000004 = .012004 % increase
V. Total Rate Adjustment:
Current Monthly % Rate Adjustment
Monetary Adjustment New Adjusted
Base Rate Allowed
Allowed Monthly Rate
$14.50 X .012
= $ .18 (1) $14.70
Current Senior Citizen
Monthly Base Rate
$11.50 X .012 = $ .14 (1) $11.70
(1) Rate increase is adjusted to reflect the 1995 base rate. Increase not rounded to nearest ($0.05)
due to the 1994 billing base rate of 14.52/11.56 (vs actual $14.50/11.55), increased by $.02/$.01
due to the 1994 rate increase proration over 10 months.
{1 1,
RESIDENTIAL COLLECTION RATE ADJUSTMENT
October 1, 1993 through September 30, 1994
G.I. RUBBISH
Residential Refuse
Hauler Request: $ .20 rate adjustment to regular base ($14.40) rate
$ .15 rate adjustment to senior citizen base ($11.50) rate
Staff's Findings: $ .20 rate adjustment to regular base rate
$ .15 rate adjustment to senior citizen base rate
STAFF'S CALCULATIONS: (Based on Quarterly Reports submitted by the hauler)
Total Expenses: $650,107 10/1/93- 9/30/94 (13% increase from 92/93)
Weighted Elements by Percentage of Operating Expenses:
Landfill $240,370= 37.0.% of Operating Expenses
Fuel $ 10,622= 01.6% of Operating Expenses
Other 99115= 61.4% of Operating Expenses (20% increase from 92/93
$650,107= 100%
I. Producer Price Index (PPI):
10/1/93 = 118.7 =
9/30/94 = 120.9 =
Adjusted % (removing fuel)= .0187 X.614= .012 increase change to % Op. Expenses
II. Simi Valley Landfill Rate:
1993 1994
$35.95 cu \yd $35.95 cu \yd = No Change
III. Diesel Fuel:
Av. Cost/Gallon: 10/92 - 9/93 $1.17
10/93 - 10/94 $1.20 = .0256% increase change = .0256 X .016=
.0004 change to % Op. Expenses
IV. Rate Adjustment Allowance
PPI ADJUSTED
% change
.012 +
V. Total Rate Adjust
Current Monthly
Base Rate
$14.50 X
LANDFILL ADJUSTED
% change
0 4-
ment:
% Rate Adjustment
Allowed
.012
FUEL ADJUSTED
% change
.0004 = .012 % increase
Monetary Adjustment New Adjusted
Allowed Monthly Rate
$ .18 (1) $14.70
Current Senior Citizen
Monthly Base Rate
$11.50 X .012 =_ $ .14 (1)
$11.70
(1) Rate increase is adjusted to reflect the 1995 base rate. Increase not rounded to nearest ($0.05) due to
the 1994 billing base rate of 14.52/11.56 (vs actual $14.50/11.55), increased by $.021$.01 due to the 1994
rate increase proration over 10 months.
004109