HomeMy WebLinkAbout1983-08-02; City Council; N/A; Refuse Collection Rate Increasecir )F CARLSBAD - AGENDA JILL \A
RB# TITLE: DEPT.HD.
MTG. 8-7-83 REFUSE COLLECTION RATE INCREASE CITY Arn\IB
DEPT. I Fi nmrP IClTY MGR. *
RECOMMENDED ACTION:
Approve Resolution No. 7254 setting refuse collection rates for
Coast Waste Management.
ITEM EXPLANATION
Council approved a Waste Collection Agreement with Coast Waste Management on
September 16, 1980.
ment that future rate adjustments would be considered based on a 7% change in
an agreed upon index. Council approved the index procedure on March 3, 1981.
residential index was set at 730 and the commercial index was set at 510, based
on the reporting period of July-September 1980.
on the operational cost data report of Coast Waste for the January-April 1983 period and, in addition, includes the landfill increase effective July 1, 1983
(7%) and the 2% service fee. Comparisons of residential rates are as follows:
This agreement is for five years and established the require-
The
The requested increase is based
Del Mar San Marcos
Vista
Carlsbad
Chula Vista
Oceans ide
Escondido
Current Rates (per month)
$8.70 6.60 6.40 6.48 5.60 5.12 5.20
FISCAL IMPAU
Under the current rates, the 2% service fee will raise about $30,000 in 1983-84.
The proposed rate increase will increase this by about 3,000 to $33,000.
fee is used to help offset the cost of billing, inspections and general supervision
of the contractor.
This
EXHIBITS
Resolution No. 7276 setting refus? collection rates for Coast Waste Management.
Memo dated July 26, 1982: Review of Coast 'Waste Management rate increase.
Report of Coast Waste Management regarding requested rate increases on file with City Clerks office.
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RESOLUTION NO. 7296
A RESOLUTION OF TIlE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REVISING THE REFUSE COLLECTION RATES FOR THE CITY OF CARLSBAD.
WHEREAS, the City of Carlsbad has contracted with Coast Waste Management,
[nc. for refuse collection services within the City; and
WHEREAS, the City adopted Resolution No. 6303 setting refuse collection
requirements and establishing rates for said services; and
WHEREAS, said contract provides that the City will meet and renegotiate
rates as requested by the collector; and
WHEREAS, after said negotiations the parties to said contract have agreed
$at certain changes in the refuse collection rates are necessary;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad
1s follows:
1.
2.
That the above recitations are true and correct.
That the rate for once-a-week collection of residential refuse shall
be a monthly charge of $6.48.
The rates for once-a-week on premise collection of residential refuse
is a monthly charge of $8.32 per month.
The monthly rates to be charged for commercial collections shall be
as follows:
3.
4.
NUMBER OF PICKUPS PER WEEK
40. of
Bins 1 2 '3 4 5 6 -.
1 37.65 60.91 84.17 107.43 130.69 153.95
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COWERCIAL CAN STO?S
1 X Week $12.24/month
2 X Week 24.48/month
3 X Week 36.72/month
4 X Week 48.96/month
5 X Week 61.20/month
APARTMENTS .IwD COmlINIm~
No. of Units
1-3 $ 6.48/month per unit 4-5 6.04/month per unit
6 or more S.84/month per unit
5. That the following rates shall apply to special pickups of refuse:
a) Drag-on box service shall be charged at the rate of 27.50 delivery
charge per box. The following dump charges apply to the following
classes of drag-on boxes:
A. (19 cu. yds. or less) $119.21 B. (20-29 cu. yds.) 134.21 C. (30-39 CU. yds.) 149.21 D. (40-49 CU. yds.) 164.21
(The above rates include the applicable dmp fees).
Demurrage charges on drag-on boxes shall be $3.00 per day in the event
the drag-on box is not dumped a minimum of one time a week. Customers
requiring more than one dump from a drag on box shall receive a r&md
of the original $27.50 delivery fee, this refund may be in the form of
a credit against the customers account with the fefuse collector.
Special pick-ups of items such as water heaters, washers, dryers, etc.
shall be individually negotiated at a reasonable rate between collector
and customer.
be notified of charges.
b)
Before any pickup of such items is made, customer shall
6.
7.
The comercial rates established hereby shal1,be effective July 1, 1983.
The residential rates established hereby shall be effective Aupt 1, 1983.
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8. The rates and charges established by this resolution shall on their
effective day supersede the rates established by Resolution No. 6302.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of
The City of Carlsbad, California, held on the 2nd day of August
1983, and by the following vote to wit:
AYES:
NOES: None
Council l&rbers Casler, Iewis, Kulchin, Chick and Prescott
ABSENT: None
MARY CASLJ$, MAYOR
ATTEST:
KAREN R. h’uMyTZ, Deputy City Clerk
July 26, 1983
TO: CITY MANAGER
FROM: FINANCE DIRECTOR
REVIEW OF COAST WASTE MANAGEMENT RATE INCREASE REQUEST
RECOMMENDATION
1.
2.
We recommend that the Council approve the trash fee increase as described in the Coast Waste Management request dated, June 22, 1983.
In future contracts with contractors for utility services, the Council may wish to include the requirement that requests for rate increase be accompanied by Audited Financial Statements covering at least the prior
fiscal year or most recent calendar quarter.
DISCUSS ION
On July 19, 1983, from Coast Waste Management. detailing the method used to compute the revised rates. that a brief review of Coast Waste's accounting records and policies was in order to verify the reliability of the data presented.
the City Council received a request for a rate increase This request was accompanied by a report The Council felt
A review of the Coast Waste Management records was performed on July 25, 1983 to verify the availability, completness, structure and order of these records. This review was also intended to confirm the source of data used to compute the revised rates referred to in the request.
Our findings are as follows:
Coast Waste Management maintains complete and well organized books of account which allow the collection of pertinent revenue and expense data. These records also allow Coast Waste Management to distribute costs to the service area level, ie Carlsbad, Del Mar, Solana Beach etc.
The source for data used in the Coast Waste Management request for rate increase is verifiable and well organized. for all elements used in computing the indexes used for determining rate increases.
Coast Waste Management uses a North County CPA firm for the preparation of annual financial statements. March, 1975. This audit was done by the City in response to a request for a rate increase. for the audit.
Figures are readily available
These statementshave not been audited since
The City used the City's CPA firm (in 1975), Diehl Evans,
4. The rate increase requested by Coast Waste Management is appropriate
based on the indicators selected by the City for determining rate
changes.
We wish to express our thanks to the staff of Coast Waste Management for their time and assistance in this review.
CITY OF CARLSBAD
SUMMARY OF REFUSE COLLECTION
RATE REQUEST
JULY 29, 1983
The City of Carlsbad has established a Trashrate Index that is to be used to determine when the City's contract collector can request a rate increase. This formula is based on the concept that operating costs must increase by at least 7% before a rate increase may be requested. Below is a summary of the Coast Waste Management rate request.
RESIDENTIAL CUSMRS
Basic Formula-
Landfill costs + Salaries + Insurance + Maintenance + Fuel XlOOO=Index No.
Base charge per customer (current)
Note: Landfill, Salaries, Insurance, Maintenance and Fuel are:
All stated on a cost per customer per month basis using 8,925 customers.
$1.415 + $1.512 + $.394 + $1.001 + $.304
$5.88
X 1000 = 786
This formula uses the land fill cost which became effective July 1, 1983.
The % increase allowed is computed as follows:
% Increase = new index / old index
10.3% = 786 . / 712
The new basic residential rate can then be computed by multiplying the old rate times the % increase:
New Rate = Old Rate X %increase
$6.48 = $5.88 X 1.103
COMRCIAL CUSTOMERS
Basic Formula-
Landfill costs + Salaries + Insurance + Maintenance + Fuel XlOOO=Index No.
Base charge per customer
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The base charge per customer is the 1 time per week bin dump rate.
$6.438 + $7.420 + $1.732 + $2.287 + $967 X 1000 = 569
$33.08
This formula uses land fill costs which become effective July 1, 1983.
The % increase allowed is computed as follows:
% increase = New Index - Old Index
Old Index
13.8% = 569 - 500
500
The new basic commercial rate can then be computed by multiplying the old rate times the % increase:
New Rate = Old Rate X % Increase
$37.65 = $33.08 X 1.138