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Home My WebLink About1981-03-03; City Council; 6302-1; Adopt a trash rate. -. CITY OF CARLSBAD , . Ini t Dept ,AGENDA BILL NO. 6302 - Supplement No. 1 tY v!! DATE: March 3, 1981 C. A DEPARTMENT: Utilities & Maintenance C. Mgr. e Subject: ADOPTING A TRASH RATE INDEX Statement of the Matter The contract with Coast Waste Management adopted by Council on September 16, 1980 calls for the development of a Trash Rate Index which is to be used as a trigger to consider an adjustment in rates. index number for residential rates is 730 and for commercial rates 510, using the procedure outlined in the report of the Director of Utilities & Maintenance, attached. The triggering occurs when there is a 7% change in the index. The Fiscal Impact No direct fiscal impact in the adoption of the indexes. evaluating rate adjustments requested by Coast Waste Management in the future. Staff time will be reduced in Exhibits 1. Memorandum from the Director of Utilities & Maintenance to the City Manager of February 13, 1981. 2. Resolution No. &/bo. 3. Coast Waste Management Quarterly Report. Recommendation Approve Resolution No. hqG4 establishing a trash rate index. t Council Action: 3-3-81 Council adopted Resolution 6460. .-- I 81-031 February 13, 1981 MEMORANDUM TO: City Manager FROM: Director of Utilities & Maintenance SUBJECT: Trash Rate Index (TRI) 1. Recommendation: Coast Waste Management based on costs of September 1, 1980. Adopt a Trash Rate Index (TRI) based on costs of operation of 2. Background: Council approved an agreement with Coast Waste Management on September 16, 1980 which included a requirement that an indexing procedure be developed which will serve as a trigger for future rate adjustments when a change of 7% or more in the index occurs. of the operation on September 1, 1980 and is to include landfill, salaries, insurance, maintenance and fuel costs. The index was to be approved by Council no later than March 30, 1981. The index is to be based upon costs 3. Discussion: Management that an index be developed based on the company's internal cost accounting procedures and including the factors in the basic agreement, utilizing the following formula. All costs are based on a "per customer'' figure: Landfill Cost t Salaries t Insurance t Maintenance + Fuel X 1000 = Index No. The Director of Utilities & Maintenance proposed to Coast Waste base charge per customer Using the September 1, 1980 operating costs, the index developed for residential service is as follows: This index number then becomes the basis for future reference and would indicate that a request for a rate change would be considered by Council (after September 1 , 1980) when the index was 730 X .93 = 679, or 730 X 1.07 = 781. Our agreement does not tie the Council to granting a rate change but merely to consider the matter. and be fully justified at the time of submission. Computation of the commercial rate, using the same rationale, is 510. It should be noted that the index does not include consideration of the following: The rate change requested must stand on its own merits a City Manager -2- February 13, 1981 General Overhead Costs including: Billing Office Expense Yard Costs Land Costs Profit The indexing method assumes these factors will generally follow the factors included in the index. It should be noted that the index number is in fact the percentage of the factors to the overall customer charge; i.e., the five factors considered are 73% of the customer charge for residential service. The commercial index at 510 indicates that a lower percentage of costs are considered by the index; however, commercial costs differ in various proportions. commercial service because they do all billing, whereas most residential service is billed by the City. As an example, the company has a higher administrative cost for Billing costs are not included in the index. 4. Fiscal Impact: There is no measurable fiscal impact implicit in the adop- tion of an index system. rate adjustments in that the index has a given set of parameters which both the City and the Company agree have direct effects on the cost of operation. Council should be aware that the present agreement with the Company guarantees present rates until September 1, 1981 and includes a provision for a 2% city service fee on gross receipts after that date. about $1250 per month ($12,500 for FY81-82) revenue to offset costs of inspection and program monitoring presently supported from other revenues. It can be anticipated that the Company will request a rate increase on September 1, 1981 as the County will increase landfill fees in April of this year. Staff time will be reduced in evaluating future This provision will provide 5. Concurrence: Coast Waste Management has participated in developing the Detailed proposed indexing method and concurs with the recommendation. computations of the indexes provided by Coast Waste Management are attached. Dir&tor of Utilities & Maintenance RWG : pab attach. 3 rm= COAST WASTE MANAGEMENT, INC. 7204 PONTO DRIVE, P.O. BOX 947, CARLSBAD, CALIFORNIA 92008 PHONE: 753-9412 or 452-9810 DEL MAR DISPOSAL CO. RANCHO SANTA FE DISPOSAL Co. SORRENTO VALLEY DISPOSAL CO. McDOUGAL SANITATION CARLSBAD DISPOSAL CO. SOLANA BEACH DISPOSAL CO. January 29, 1981 Mr. Roger Greer Director Utilities and Maintenance Dept. City of Carl sbad 1200 Elm Street Carlsbad, Ca. 92008 Dear Roger, As requested, I am submitting a quarterly report and an up- dated index for your review and approval. This will establish the initial indexing system using the method suggested by you, The following figures are for the three month period of July, August, and September, 1980. If this report and indexing system is acceptable I would like to request that it be submitted to Council for final approval in the near future. Verification of any of these figures can be available upon request. If you have any qu tions feel free to contact me. #F Yours Sincere1 ADJ : pc A SATISFIED CUSTOMER IS OUR FIRST CONSIDERATION GEul?!E 1,029 1.286 ,325 ,274 ,161 INDEX 171 214 54 45 26 - 3.075 510 EXXIBIT 1 LAND FILL - BASIS PER m LOAD'FEE PER BIN EXHIBIT 11 sp;wIIEs - PER HOUR DRIVER MECHANICS LUBEMAN TIREMAN WELDER YARE" Rom rn- swI" COST PER DUMP EXHIBIT 111 INmm 5024- 5165 WDRKMENS CcplPENsATlON 5160 GENERAL LIABILITY TOTAL COST PER BIN 3 MDTYTHLY AVE EXHIBIT 1V MAINTENANCE 5015 OUTSIDE SERVICE 5040-2 5060 5110 5016 5070 5101 5103 5105 5120 5262 5265 5045 DEPRECIATION LUBRICANTS YARD & BULLDING MAlYT. PARTS & SUPPLIES TRUCK WADE MIscELlLANEous GETma REPAIRS TIRE & TUBES comma MAmrEwNa OFFICE EQm. SMALL TOOLS 7xYIxL 4 3 MDNIHLY AW COST PER BIN EHIBIT V 5050 FUEL COST PER BIN DUMP COST INDm 1,029 17 1 55.00 $ 5.25 7.00 5.25 4.40 5.20 4,40 8.00 5.50 $ $ 3,000.00 18,770.00 13,318.00 $ 35,088.00 $ 11,696.00 $ 6,126.00 54,285.00 3 858.00 8,427.00 17 567.00 641.00 317 00 5,163.00 3,555.00 147.00 -0- 9,090.00 109.176.00 1 286 .325 214 54 $ 36,392.00 45 ,274 ,161 26 3.075 510 EXHIBIT 1 NUMBER OF CQPNERCIAL TRUCKS, SIX DAYS PER WEEK................... 2 AVEEUiGE NUMBER OF BIN DUMPS PERTRUCK PERDAY...................150 DUM€' FEE PER 40-49 CUBIC YARD LQAD ....................... $ 55.00 CC%IPUTCITION OF LANDFILL COSTS TOTAL AVERAGE WS PER I". ................................. .I46 (2 (XMBRCIAL TRUCKS (40-49 CU. yds.) 2.8 LQADS PERMY = 5.6 LQADS PERDAY X 6 DAYS = 33.6 LQADS PER WEEK X 52 WEEKS = 1,747 LQADS PER YEAR + 12 J!K"s = 146 I.QADs PERrn".) 'IWIIL, AVERAGE DUMP FEES PER M3VI'H = ...................... $8,030.00 (146 LOADS PER MXEI X $55.00 PER W) TWIN, AVERAGE NUMBER OF BIN DUMPS PER MONTH = ............... 7,800 (2 TRIJQS X 150 BIN DUMPS PER TRUCK PER DAY = 300 BIN DUMPS PER DAY X 6 DAYS = 1,800 BIN DUMPS PER WEEK X 52 = 93,600 + 12 MONTHS = 7,800 BIN WMPS PER M!3"H) AVERAGE COST PER BIN DUMP = ........................ 1.029 PERDUMP (DUMP FEES PERMONTH $8,030.00 + 7,800 BIN DUMPS PER M!3NTH) 1'029 4.3 = ,171 X 1,000 = ..................... 171 INDEX T?OTNIyj 25.79 7 EXHIBIT 11 2 DRIVERS, 9 HOURS PER DAY, 6 DAYS PER WEEK, @ $5.25 PER HOUR PER DRIVER = ............................................... $ ( 2 X 9 = 18, 18 X 6 = 108, 108 X $5.25 = $567.00) 2 HELPERS, 9 HOURS PER DAY, 6 DAYS PER WEEK, @ $4.40 PER HOUR PER DRIVER.. ............................................... .$ ( 2 X 9 = 18, 18 X 6 = 108, 108 X $4.40 = $475.20 TWHLWEEKLYDRIVERS - "EX3 WAGES.....$ DRIVERS - HELPEX WY PERPlXI" .............................. .$ ( $1,042.00 PER WEEK X 52 WEEKS = $54,184.00 + 12 PD"S = $4,513.66) 567.00 475.00 1,042.00 4,515.00 WELDER, 8 HOURS PER DAY, 5 DAYS PER WEEK @ $5.20 PER HOUR,. . , . , $ LUBE", 2 HOURS PER DAY, 5 DAYS PER WEEK @ 5.25 PER HOUR BIN DELIVERY DRIVER, 5 HOURS PER DAY, 5 DAYS PER WEEK @ $5.25 PER HOUR., ....... .$ BIN MEN, 5 HOURS PER DAY, 5 DAYS PER WEEK @ $4.40 PER HOUR,. ....... .$ MECHANIC, 8 HOURS PER DAY, 5 DAYS PER WEEK, @ $7.00 PER HOUR $ ROUIEFOREMAN, ZHOURSPERDAY, 6DAYSPERWEEK@$8.00 PER HOUR..,.. ... ..$ TIRE MAN, 2 HOURS PER DAY, 5 DAYS PER WEEK, @ $4.40 PER HOUR. I .$ RELIEF MAN, 4 HOURS PER DAY, 6 DAYS PER WEEK @ $5.50 PER HOUR. .$ $ mAL WEEKLY mRT PERSONNEL was.. .$ mKr PERsONNEL PERm ...................................... $ ( $1,274 X 52 WEEKS = $66,248.00 + 12 M0NII-E = $5,520.66) TOTAL SALARIES PERrn .......................................... $ ( DRTJERS - HEI;pERs $4,515.00 + $5,521.00 suppoIiT PEXSOJWL) COST PER BIN D'LIMP = ............................................ .$ ( $10,036.00 7,800 BTN DUMPS PER M3"H = 1.286) 208.00 53.00 131.00 330.00 280.00 96.00 44.00 132.00 1,274.00 5,521.00 10,036.00 1.286 1.286 X 4.3 = 5.529 + 25.79 = .214 X 1,000 = ................... ,214 IMlM POINTS EXHIBIT 111 THE J!D"LY AMOUNTS 0CR.IpILED FlWl AVEBAGE OF PJ3DUlJMS FOR THE MOMK OF JULY, AUGUST AND SEPTEZBER 1980. AVJ3RAa IT"L,Y FWNlYM = $11,696.00 $11,696.00 + 4.6 VYEXS = $254.00 PER ENFIDYEX 'PER lT" X 10 EPEWYEES = $2,620.00 PER"R, $2,540.00 PERl40" + 7,800 BLN DWS = ,325 PER BIN DUMP ,325 X 4.3 = 1.397 + 25.79 = .054 X 1,'OOO = .54 TNDEX POwrS EXHIBIT 1v alMmRcm COST INDEX OUTSIDE s"tcES.. ................................ .$ 2,042.00 RE", & DEPRECIATION. ............................. $ 18,095 .OO TRUCK REPAIRS - PARTS.. ........................... .$ 14,969.00 LUBRICANIS ......................................... $ 1,286.00 TOTAL AWEWE ?AO"LY AMOUNT. .$ 36,392.00 AVERAGE PD"LY COST PER TRUCK = ....................... $ 1,070.00 ( $36,392.00 ; 34 TRUCKS = $1,070.00 PER TRUCK) mmY CARLSBAD TRUCK COST.. .......................... .$ 2,140.00 ( 2 CARZSBAD C@ND?.CIAL TRUCKS X $1,070.00 = $2,140.00 ) ................. COSTTOCUSMklERPERBINWMP,., ,274 ( $2,140.00 7,800 BIN DWS PER MXlTH = $ ,274) .274 X 4.3 = 1.178 + $25.79 = .045 X 1,000 ....... .45 IMlM POINTS MHIBIT V M0"T-Y AMIW IS AJYAVJBAGE OF 3 l4BI"S USAGE BY THE 2 CAEiLSBAD (lxlmmxIAL mum. THE PRICE OF FUEL IS AN AVEZAGE OF THE QU.., 1557 ONS PERMONTH X .81 PER G" = $1,261.00 PER m. COST PER BZN DUMP = . . , . . , . . . . . . . . . . . . . . . . . . . . . . . . . , , , . .161 ( $1,261.00 7,800 BIN DUMPS = ,161 PER BIN DW) .161 X 4.3 = .692 + 25.79 = ,026 X 1,000 = 26 INDEX POINTS mTfidEE INDEX ,945 203 1,280 275 298 64 .629 135 ,250 53 3.402 730 x I LUST WASTE MANACTPE" INCOWOM% DEZULED Sc"E OF MPENSES BASED ON 1st QUARTER - JULY - AUGUST - SEPTENBEX 1980 IzEsm EXHIBIT 1 LAND FILL - BASIS PER LQAD LQADrnPERCu~ MKlBIT 11 SALMUlIS - PER HOUR EXHIBIT IN- 5024 GROW 5165 W"S CCMFJ3NSATI.a 5160 GENERAL LIABILITY mm 3 MOJTMLY AVE COST PER Cum EXHIBIT ZV - 5015 OWSIDE SERVICE 5060 DEPRECIATION 5110 LUBRICANTS 5016 YARD & BUILDING "T. 5070 PARTS & SUPPLTES 5101 TRUCK IEPAIRS 5103 MIScEL;LANEOUS 5105 (=ENERAL REPAIRS 5120 TIRE & TUBES 5262 CONTAINERM-CE 5040-2 "72% COST $ 36.75 .945 INDEX 203 $ 5.25 7.00 5.25 4.40 5.20 4.40 8.00 5.50 1.280 275 S 3,,000.00 18,770.00 1.3 ;318, QQ s 35-.ofE..Qo $ 11,696.00 $ 6,126.00 54,285.00 3,858.00 8,427.00 17,567.00 641.00 317.00 5,163.00 3,555.00 9,090.00 298 64 5265 mCE OFF'ICE ET. 147.00 5045 SMALL TOOLS -6- mrps, 1Q9, -1.76. QO COST PER cusm .629 %VEL 1 $ 36,392.00 T MHIBIT V - 135 , a5Q 53 3.402 730 I3 EXHIBIT 1 NUMBER OF (2WSBAD Cum.. ...................... .8,500 NUMBER OF RESIDE3TIA.L TRUCKS - F" WYS PER WEEK.. ..... .4 NUMBER OF RESIDElVlTKL TRUCKS - THREE DAYS PER WEEK., . . *. .2 4 RESIDENTIAL TRUCKS (25-29 CU. yds.) @ 2 LQADS PER DAY= 8 LQADS A DAY X 5 WYS PER WEEK=. ............................ .40 LQADS PER WEEK 40 LOADS PERWEEKX 52 WEEKS = 2080 LQADS PERYEAR + 12 ....... 173 LQADS PERlXNI'H 173 LQADS PER MIJWH X $36.75 PER LOAD = ...................... $6,358.00 PER MINI" 2 RESID= TRUCKS (20-24 CU. yds.) @ 2 TA)ADS PER DAY= 4 LQADS A MY X 3 DAYS PER WEEK = ............................12 LQADS PERWEEK 12 IDADS PER WEEK X 52 WEEKS = 624 IDADS PER YEAR + ......... .52 LQADS PER l4"H 52 LQADS PER MD" X $32.25 PER LOAD = ...................... .$1,677.00 PER lXNI'H lD"J-Y OOST FOR 25-29 CU. YARD TRUCKS.. ...................... $6,358.00 1,677.00 mY COST FOR 20-24 CU. YARD TRUCKS.. ...................... $8,035.00 $8,035.00 BY 8,500 CUm = ............................ ,945 PER Cum .945 4.65 = .203 X 1,000 = ................................ 203 INDEX POINI'S RESID- SALAR-Y COST INDEX cXX'UTATIoN OF CAFUSBAD - La COSIlA PAYROLL COSTS 4 DRIVERS @ 8 HOURS PER DAY = 32 HOURS PER DAY X 5 DAYS PER WEEK = 160 HOURS PER WEEK X $5.25 PER HOUR = ............... .$ 840.00 4 DRIVERS @ 1.5 HOURS PER DAY WEF€CIME = 6 HOURS PER DAY X 5 DAYS PERWEEK= 30 HOURS PERWEEKX $7.86 PERHOUR= ...... $ 236.00 CAEiLSBAD - La COSTA CATBI AIL 2 DRIVERS @ 8 HOURS PER DAY = 16 HOURS PER DAY X 3 DAYS PER WEEK= 48HOURSPERWEEKX$5.25PERHOUR= ................. $ 252,OO 2 DRIVERS @ 1.5 HOURS PER DAY OVERTDE = 3 HOURS PER DAY X 3 DAYS PERWEEK= 9 HOURS PERWEEKX $7.86 PERHOUR ......... $ 71.00 TOTAL DRIVERS SALARY = .................. $ 1,399.00 suppoRT PERsONNEL 1.33 MECWJTCCS @ 8 HOURS PER DAY = 10.6 HOURS PER DAY X 5 1.33 MECHANICS @ 2 HOURS PER DAY = 2.66 HOURS PER DAY X 5 1 LUBE MAN @ 2.6 HOURS PER DAY = 2.6 HOURS PER DAY X 5 DAYS PERWEEK = 13 HOURS pER WEEK X $5.25 PER HOUR = ........... ..$ 1 TIRE MAN @ 2.6 HOURS PER DAY = 2.6 HOURS PER DAY X 5 DAYS PER WEEK = 13 HOURS PER WEEK X $4.40 PER HOUR = ....... *$ 1 WELDER @ 8 HOURS PlB DAY = 8 HOURS PER DAY X 5 MYS PER WEEK=#HOURSPERWEEKX$5.2OPERHOUR= ........ *..,.,,..$ 1 YARD MAN @ 2.6 HOURS PER DAY = 2.6 HOURS PERDAY X 5 DAYS 1 ROUI'E RXl" @ 2.6 HOURS PER DAY = 2,6 HOURS PER DAY X 5 DAYS PERWEEK= 13 HOURS PERWEEKX $8.00 PERHa- ,,,,.,$ 1 SWINGMAN @ 4 HOURS PER DAY = 4 HOURS PER DAY X 5 DAYS PER WEEK = 20 HOURS PERWEEK X $5.50 PER HOUR = ............. $ DAYS PERWEEX= 53 HOURS PERWEEKX $7.00 PERHOUR= ........ $ DAYS PER WEEK = 13.3 HOURS PERWEEK X $10.50 PER HOUR = ..... $ PERWEEK= 13 HOURS PERWEEKX $4.40 PERHOUR= ............. $ 371.00 140.00 68.00 57.00 208.00 57.00 104.00 110.00 TWIN, SALARY OF SUPFORT PERXFN% ........... $ 1,115.00 ToTpJL DEUVERS AND suppoRT PERSONNEL SATAJXY PER"IIK.. ................. .$ 2,514.00 TWWL SATARY PER WEEK $2,514.00 X 52 WEEKS = $130,728,00 + 12 = $10,894.00 + 8,500 CU- .................... .PER Cum. ........ $ 1.28 1.28 + 4.65 . .275 X 1,000 ........................................... ,275 INDM POINS MONIHLY AlvKmrS m"s m JULY, EXHIBIT 111 rn AVERAGE rn mmum rn~ THE AUGUST AND SEPTEMBER 1980, FWPIIUM = $11,696.00 $11,696.00 + 46 EMmdlyEES = $254,00 PER EMPLOYEE €'E!? MoJWH X 10 EMmxlyEES = $2,540.00 PER ~"H, $2,540.00 PER= .X BY 8,500 cusroMERs = ,298 'pw CU- ,298 + 4.65 = ,064 X 1,000 = 64 INDEX POINTS MHIBIT 1V CDMEVUTION OF MAl"cE COSTS OUTSIDE SERVICES. ....................................... $ 2,042.00 RJWIAL AND DEPRECIATION,. ............................... $ 18,095.00 TEIIK=K REPAIRS AND PARTS.. $ 14,969.00 LUBRICANTS. ............................................. $ 1,286.00 ............................... TOTIV, AWQ3 l+l"lY COST,. .... .$ 36,392.00 AVERAGE IT"HLY COST PER TRUCK.. ........... $ 1,070.00 ($36,392.00 + 34 TEUJCKS = $1,070.00 PW 'RUCK) 5 CARZSBAD TRUCKS X $1,070.00 = $5,350.00 PER M3NIH + 8,500 CU- = PIB CUs"ER COST MONTHLY CAICLSBAD COST ...................... $ 5,350.00 .629 .629 + 4.65 = ,135 X 1,000 = ........................... 135 INDEX POINTS 17 EXHIBIT v MONJXLY AMMINT IS AN AVEEUGE OF 3 ?X"S USAGE BY THE 5 wm REsmmIAL TRUCKS. THE PRICE W FUEL ISANAVEXAGE OF THE QuARTEEL 2,626 GAUDNS PER MC"H X .81 PER GMUN = $2,127.00 PERPD" + 8,500 CusrCMERs = ....................... $ ,250 PER CUm $ .250 + $4.69 = .053 X 1,000 ....................... 53 INDEX Porn 1 2 3 4 5 G 7 a 9 10 il 12 13 34 15 IE 17 1E 1s 2c 21 22 2: 24 2E 26 27 2E WHEREAS, to provide so WHEREAS , RESOLUTlOi4 NO. 6460 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD ESTABLISHING A TRASH RATE INDEX the City of Carlsbad has a contract with Coast Waste Management id waste collection service to the City of Carlsbad, and the current contract with Coast Naste Management requires that an index systan be developed by March 30, 1981 to serve as a trigger for future rate adjustments, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carl sbad as foll ows : 1. 2. Landfill Cost + Salary Cost t .~ Insurance Cost + Maintenace Cost + Fuel Cost Rate Per Custoiiier X 1000 = Index Number The index approved for residuntial rates is 730 and for cQmmercial rates is 510. That the above recitations are true and correct. That the following index formula is adopted: 3. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 3rd day Of March , 1981, by the following vote, to wit: AYES : Council Members Packard, Casler, Anear, Lewis and Kulchin NOES: None ABSENT: None ATTEST: (SEAL) -. -. . 81 -035 February 18, 1981 MEMORANDUM TO: City Manager FROM: Director of Utilities & Maintenance SUBJECT: Coast Waste Management - Quarterly Report Attached is the quarterly report from Coast Waste Management. This report is required in our agreement with them of September 1980. DiHctor of Utilities & Maintenance RWG: pab attach. cc: Assistant City Manager/Operations Director of Finance .. -. .. ', . rmT COAST WASTE MANAGEMENT, INC. 7204 PONTO DRIVE, P.O. BOX 947, CARLSBAD, CALIFORNIA 92008 PHONE: 753-9412 or 452-9810 McDOUGAL SANITATION CARLSBAD DISPOSAL CO. SOLANA BEACH DISPOSAL CO. DEL MAR DISPOSAL CO. RANCHO SANTA FE DISPOSAL CO. SORRENTO VALLEY DISPOSAL CO. February 11, 1981 Mr. Roger Greer, Director Utilities and Maintenance City of Carl sbad 1200 Elm Aveniue Carlsbad, Ca. 92008 Dear Roger, As per your phone request and as required in Article 6 of the Waste Collection Agreement with the City of Carlsbad, please accept our report for October, November and December, 1980, A. Number of complaints: 1. RESIDENTIAL 1980 October 4 complaints November 4 complaints December 1 complaint 2. COMMERCIAL 1980 October 4 complaints November 0 complaints December 1 complaint Total complaints for the quarter B. Average number of customers served: 1. Residential 8500 per month 2. Commerci a 1 778 per month C. Average gross receipts: 1. Residential $38,079.26 2. Commercial $45,907.90 A SATISFIED CUSTOMER IS OUR FIRST CONSIDERATION "misses" II It ''misses" II II 14 Page 2 D. Significant anticipated future problems: We anticipate at least four areas which will affect refuse collection in the City of Carlsbad. 1. The County of San Diego will definitely increase 2. The removal of federal price controls on fuel and 3. The cost of money is still hovering at 20% and we 4. All of us are still experiencing double digit all dump fees by not less than 40% on or before July 1, 1981. oil is significantly increasing our operational costs. do not anticipate any significant decreases in the near future. inflationary pressvres which increases our cost of doing business in all areas. I"m hoping that this report, although brief, meets the requirements of Article 6 in our agreement with the city. If you have any questions, Roger, please call me. Yours very tr ly, 2aJ-mJL Edward Boersma Coast Waste Management, Inc. EB:pc