HomeMy WebLinkAbout1988-12-06; City Council; 9765; Monthly Refuse Collection Rate Increase55 - _-
Cl’< i OF CARLSBAD - AGENL BILL
AB## 9’7by
ATG. 12-6-88
IEPT. U/M
TITLE DEPT. HDPA
CITY AlNW-
CITY MG&b MONTHLY REFUSE COLLECTION RATE INCREASE
RECOM M EN DED ACT; DN:
Adopt Resolution No ff‘faapproving an increase in monthly trash collection rates for residential and commercial trash collections.
ITEM EXPLANATION:
REFUSE COLLECTION RATE INCREASE
Coast Waste Management has requested a basic monthly residential rate increase. The Finance Department’s auditor has reviewed this request for increase, has audited the operations, and has determined that the recommended rate increase should be 9.4% for residential users and 9.6% for commercial users. This would change the monthly residential trash rate from $6.95 to $7.60, an increase of 65 cents. The increase will be effective on December J
1, 1988.
The requested rate increase is based upon the index system adopted by Resolution No. 6460 of March 3, 1981. The index system considers insurance, maintenance and fuel costs. Further, the index system provides that a change in 7% of the index will be sufficient to consider a rate adjustment.
The first rate change under the index system occurred in 1983. The residential rate increased from $5.88 to $6.48 or 10.8% and the commercial rates increased 13.8%. The last rate increase occurred in 1986. The residential rate increased from $6.48 to
$6.95 or 7.4% and the commercial rate increased 16.2%. Coast Waste Management, Inc. provided a table of rate comparisons for other San Diego County locations with its submittals.
Current updated monthly residential trash collection rates for our general area are represented in Exhibit 4.
RECYCLING PROGRAM The proposed trash rate increase does not include the cost of the recycling program. Negotiations have begun between Coast Waste Management, Inc. and City staff. Coast Waste Management has indicated that they will submit a written proposal to operate the City Recycling Program by December 1, 1988. Negotiations should be completed and a proposed contract submitted for City Council consideration by January, 1989. If a written proposal is not received by December 1, 1988, staff will prepare a Request for Proposal and solicit competitive proposals for operating the
recycling program.
A
PAGE 2 OF AB# q7d'l
PRESENT REF'USE COLLECTION CONTRACT
At the conclusion of the current contract year, Coast Waste
Management will have served nine (9) years as the City's refuse
collection contractor. The initial term of the contract with
Coast Waste Management was for a period of five (5) years, from
1980 through 1985, and is automatically extended each year
thereafter unless terminated by either party at least ninety (90) days in advance of the contract anniversary date of September 1. Since it will be nine (9) years since the refuse collection contract was competitively bid, staff has conducted a cursory, comparative, review of the costs of refuse collection services
provided to the City of Carlsbad, and the costs and service
provided in other cities. The information gathered in that survey
contained in Exhibit 4.
To collect refuse in the City, a person must be granted a
Certificate of Public Necessity and Convenience by the City
Council. In the application for a ltCertificatell the applicant must, among other things, offer to pay the City 5% of gross revenues for the right to collect refuse.
Coast Waste Management is operating under a "Certif icatell granted
to McDougal Sanitation in 1958. McDougal Sanitation has changed
owners and corporate names several times since 1958.
While researching the history of the refuse collection contract
and the IlCertificateIl, staff found that the Municipal Code
requires a l1Certificatel1 applicant to offer to pay the 5% fee,
however, the present contract makes no mention of this fee. Coast
Waste Management is paying a 2% IIService Fee" pursuant to their
Contract with the City. The IIService Fee" is to offset the cost
of billing and administration. Our brief research did not reveal whether the 5% fee was waived, reduced or simply overlooked.
Further research is required to determine the status of the fee.
In view of the long period of time since the contract was last
competitively bid, the apparent disparity in services (see Exhibit
4, page 3) and costs between the City of Carlsbad and adjacent
cities and the issue of the 5% fee required by the Municipal Code,
staff intends to conduct an indepth comparative evaluation of the
refuse collection contract and the requirements of the Certificate
of Public Necessity and Convenience. It is expected that this
evaluation can be presented for Council consideration in March of
1989, together with a recommendation as to whether or not the
contract should be competitively bid, renegotiated or extended in its present form.
PAGE 3 OF AB# W66
FISCAL IMPACT:
The residential trash collection rate will be $7.60 per month, an increase of 65 cents and an increase of 9.6% for commercial users.
The City should receive about $4,800 per month in service charges.
EXHIBITS :
1. Resolution NO. Xi +23b
2. Coast Waste Management, Inc. request ttCarlsbad Refuse Rate
3. City Auditorls report ttReview of Refuse Rate Indexest1.
4. Refuse Rate Comparison Study
Indexest1 and letter ttComunity Supportll .
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RESOLUTION NO. 88-423
A RESOLUTION OF THE CITY OF CARLSBAD, CALIFORNIA, REVISING THE MONTHLY REFUSE COLLECTION RATES FOR
THE CITY OF CARLSBAD
WHEREAS, the City of Carlsbad has contracted with Coast
Waste Management, Inc. for refuse collection services within the
City; and
WHEREAS, the City adopted Resolution No. 8868, establishing
rates for refuse collection services; and
WHEREAS, the City adopted Resolution No. 6460 establishing
a trash rate index to initiate rate negotiations, and evidence
has been provided and verified that the index Ittriggerwt has been
exceeded.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad as follows:
1. That the above recitations are true and correct.
2. That the rate for once-a-week collection of
residential refuse shall be a monthly charge of $7.60, an
increase of 65 cents.
3. That the rate for once-a-week on premise collection
of residential refuse shall be a monthly charge of $9.77, an
increase of 84 cents.
4. That the monthly rates to be charged for commercial
collections shall be:
Ill
Ill
Ill
Ill
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4
F c
E
7
E
IC
11
1%
It
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15
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20
NUMBER OF PICKUPS PER WEEK
No.
of
Bins 1 2 3 4 5
1 $47.95 $77.57 $107.20 $136.81 $166.44
6
$196.06
COMMERCIAL CAN STOPS
1 X Week $15.60/Month
2 x Week 3 1.18/Month
3 x Week 46.77/Month
4 x Week 62.35/Month
5 x Week 77.94/Month
5. That the monthly charge for apartments and
condominiums shall be:
No. of Units
1-3 $7.60/Month per unit
4-5 7.09/Month per unit 6 or more 6.86/Month per unit
6. That the following rates shall apply to special
pickups of refuse:
a) Drag-on box service shall be charged at the rate
The following dump charges of $27.50 delivery charge per box.
apply to the following classes of drag-on boxes.
A. (19 cu. yds. or less) $142.32
B. (20-29 CU. yds.) 161.32
C. (30-39 CU. yds.) 180.12
d. (40-49 CU. yds.) 196.56
(The above rates include the applicable dump 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 refund of the original $27.50 delivery fee,
this refund may be in the form of a credit against the customers
account with the refuse collector.
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b) Special pick-ups of items such as water heaters,
washers, dryer, etc. shall be individually negotiated at a
reasonable rate between collector and customer. Before any
pick-up of such items is made, customer shall be notified of
charges.
7. That the commercial rates established hereby shall be
effective December 1, 1988.
8. That the residential rates established hereby shall
be effective December 1, 1988.
9. That the rates and charges established by this
Resolution shall on their effective day supersede the rates
previously established.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council of the City of Carlsbad, California, held on the
- 6thday of December , 1988, and by the following vote, to
wit:
AYES: Council Members Lewis, Pettine, Mamaux and Larson
NOES: None
ABSENT : Council Member Kulchin
ATTEST:
ETfi L. RAUTENKRANZ, City aerk
(SEAL)
3
-m ~
PHONE: 753-9412
or 452-9810
COAST WASTE MANAGEMENT, INC.
6960 EL CAMINO REAL, P. 0. BOX 947, CARLSBAD, CALIFORNIA 92008
MCDOUGAL SANITATION
CARLSBAD DISPOSAL CO.
SOLANA BEACH DISPOSAL CO.
DEL MAR DISPOSAL CO.
RANCHO SANTA FE DISPOSAL CO.
SORRENTO VALLEY DISPOSAL CO.
August 2, 1988
Mr. Ralph Anderson Utilities and Maintenance Director City of Carlsbad 2075 Las Palmas Carlsbad, CA 92009-1519
RE: Carlsbad Refuse Rate Indexes
Dear Ralph:
The County of San Diego enacted new landfill disposal site fees for all County landfills effective July 1, 1988. The increases for commercial haulers were raised by approximately 31.25%. This increase, along with other expenses, has affected our operating costs to have us prepare the enclosed revised indexes for the commercial and residential rates.
The indexing agreement adopted in 1980 between the City of Carlsbad and Coast Waste Management, Inc. established a basis for requesting a rate adjustment. To request a rate adjustment, the base index must be increased by 7 percent (7%) or a request could be made for unusual increases in the costs of operation.
When calculated, the formula for the residential index indicated an increase of 78 index points or a 9.4 percent adjustment. adjustment, the County Disposal Site Fee contributed 5.9 percent of the increase. The commercial service index reflected a 62 point adjustment or a 9.6 percent increase. The County Disposal Site Fee accounted for 7.1 percent of the commercial rate adjustment.
Of the 9.4 percent residential
After preparing the indexes, I contacted Joe Eggleston who set up an audit of our records by the City Auditor, Mr. A1 Capuchino. Mr. Capuchino's review was com- pleted on Friday, July 22nd which should pare the information enclosed for our proposed rate adjustments.
Included is a comparison of surrounding cities and communities refuse disposal raLds for your information. cr,amercial service for Carlsbad remain in the same range of rates for like service in other areas of San Diego County.
The rates proposed do not reflect any costs for any recycling programs.
The proposed rate increases for both residential and
We look
A SATISFIED CUSTOMER IS OUR FIRST CONSIDERATION
PHONE: 753-8112
or 452-9810
COAST WASTE MANAGEMENT, INC.
S960 EL CAMINO REAL, P. 0. BOX 947, CARLSBAD, CALIFORNIA 92008
DEL MAR DISPOSAL CO.
RANCHO SANTA FE DISPOSAL CO.
SORRENTO VALLEY DISPOSAL CO.
McDOUGAL SANl TAT ION
CARLSBAD DISPOSAL CO.
SOLANA BEACH DISPOSAL CO.
August 2, 1988
Mr. Ralph Anderson Uti 1 i ties and Maintenance Director City of Carl sbad
(continued)
forward to working with City Staff to prepare a multifaceted recycling program.
We respectfully request the City Council to approve this rate adjustment to become effective September 1, 1988.
Should you or the City Staff have any questions or require additional information to substantiate this request, please feel free to contact me.
Sincerely,
Conrad B. Pawelski Vice-president & General Manager
CBP/mb
Encl s :
A SATISFIED CUSTOMER IS OUR FIRST CONSIDERATION
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LANDFILL
SALARIES
INSURANCE
MAINTENANCE
FUEL
CARLSBAD RESIDENTIAL REFUSE INDEX
NEW 1986 INCREASE COST/WEEK INDEX INDEX (DECREASE)
1.88 270 22 1 49
1.89 272 264 8
.70 100 119 (19)
1.68 242 206 36
.14 20 16 4
6.29 904 82 6 78
COMPARISON OF BASE INCREASE: 78 INDEX POINTS INCREASE = 9.4%
826 BASE INDEX
A
COAST WASTE MANAGEMENT, I
DETAILED SCHEDULE OF EXPENSES BASED ON FIRST QUARTER - JANUARY, FEBRUARY, MARCH 1988
< RESIDENTIAL
EXHIBIT I
LANDFILL - BASIS PER LOAD
LOAD FEE PER CUSTOMER
EXHIBIT I1
SALARIES - PER HOUR
DRIVER
ROUTE FOREMAN
SWINGMAN
MECHANIC
LUBEMAN
TI REMAN
WELDER
YARDMAN
COST PER CUSTOMER
COST INDEX $63.00 1.88 2.70
$ 8.55 14.42
9.00
10.00
8.00 7.00
8.00
7.50
1.89 272
EXHIBIT I11
5024 . GROUP $ 55,070.02
5160 GENERAL LIABILITY (INCLUDES BONDS) 57,403.92
INSURANCE
5165 WORKERS' COMPENSATION 100,000.00
TOTAL
3 3 MONTHLY AVERAGE
COST PER CUSTOMER
EXHIBIT IV
5015 OUTSIDE SERVICE
5016 YARD & BUILDING MAINTENANCE
5040-2 RENTAL (INCLUDES LEASE)
5045 SMALL TOOLS
5060 ' DEPRECIATION
5070 . PARTS & SUPPLIES
5101 . TRUCK REPAIRS
5 103 ' MISCELLANEOUS
5105 GENERAL REPAIRS
5110 LUBRICANTS
5120 TIRES & TUBES
5262 CONTAINER MAINTENANCE
5265 MAINTENANCE OFFICE EQUIPMENT
MAINTENANCE
$ 212,473.94
$ 70,824.64 .70 100
$ 10,357.60 4,653.02
49,805.55
5,472.37
170,000.00
37,561.14
57,731.36 888.96 1,844.80 8,981.12
32,028.36
14,350.41
2,842.15
TOTAL $ 396,516.84
I 3 MONTHLY AVERAGE COST PER CUSTOMER $ 132,172.28 1.68 242
EXHIBIT' V
5050 FUEL
COST PER CUSTOMER
GRAND TOTAL
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$ 1,902.84 .14 20
6.29 904
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EXHIBIT I
NUMBER OF CARLSBAD CUSTOMERS. .......................................... 13,524
NUMBER OF RESIDENTIAL TRUCKS FIVE DAYS PER WEEK. ....................... 7
NUMBER OF RESIDENTIAL TRUCKS TWO DAYS PER WEEK ......................... 1
COMPUTATION OF LANDFILL COSTS
7.4 RESIDENTIAL TRUCKS (20-24 CU. YDS.) (3 2.50 LOADS PER DAY ........................ = 18.50 LOADS A DAY X 5 DAYS PER WEEK = 93 LOADS PER WEEK
93 LOADS PER WEEK X 52 WEEKS = 4,836 LOADS PER YEAR i 12 = ..... 403 LOADS PER MONTH
403 LOADS PER MONTH X $63.00 PER LOAD = ....................... .$25,389 PER MONTH
$25,389 i 13,524 CUSTOMERS = ................................... 1.877 PER CUSTOMER
1.877 + 6.95 = .270 X 1,000 = .................................. 270 INDEX POINTS
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EXHIBIT I1
4
7.4
7.4
2.5
2.5
1
1
1.25
1
1
1
RESIDENTIAL SALARY COST INDEX
COMPUTATION OF CARLSBAD/LA COSTA PAYROLL COSTS
DRIVERS @ 9 HOURS PER DAY = 66.6 HOURS PER DAY X 5 DAYS PER WEEK = 333 HOURS PER WEEK X $8.55 PER HOUR = ................................ .$ 2,847.15
DRIVERS @ 1 HOUR PER DAY OVERTIME = 7.4 HOURS PER DAY X 5 DAYS PER WEEK = 37 HOURS PER WEEK X $4.275 PER HOUR = ...................... 158.18 $
TOTAL DRIVERS SALARY ..................................$ 3,005.33
SUPPORT PERSONNEL
MECHANICS (3 10 HOURS PER DAY = 25 HOURS PER DAY X 5 DAYS PER WEEK = 125 HOURS PER WEEK X $10.00 PER HOUR = .........................$ 1,250.00
MECHANICS (3 2 HOURS PER DAY = 5 HOURS PER DAY X 5 DAYS PER 125.00 WEEK = 25 HOURS PER WEEK X $5.00 PER HOUR = $ LUBEMAN @ 5 HOURS PER DAY = 5 HOURS PER DAY X 5 DAYS PER WEEK = 25 HOURS PER WEEK X $8.00 PER HOUR = ........................... $ 200.00
TIRE MAN Q 4.5 HOURS PER DAY = 4.5 HOURS PER DAY X 5 DAYS PER WEEK = 22.5 HOURS PER WEEK X $7.00 PER HOUR = ..................... $ 157.50
WELDERS @ 8 HOURS PER DAY = 10 HOURS PER DAY X 5 DAYS PER
WEEK = 50 HOURS PER WEEK X $8.00 PER HOUR = ........................... $ 400.00 YARD MAN @ 5 HOURS PER DAY = 5 HOURS PER DAY X 5 DAYS PER WEEK = 25 HOURS PER WEEK X $7.50 PER HOUR = ........................... $ 187.50
ROUTE FOREMAN @ 5 HOURS PER DAY = 5 HOURS PER DAY X 5 DAYS
PER WEEK = 25 HOURS PER WEEK X $14.42 PER HOUR = $ 360.50 SWINGMAN @ 5 HOURS PER DAY = 5 HOURS PER DAY X 5 DAYS PER
...........................
......................
WEEK = 25 HOURS PER WEEK X $9.00 PER HOUR = .......................... $ 225.00
TOTAL SALARY OF SUPPORT PERSONNEL ......................$ 2,905.50
TOTAL DRIVERS AND SUPPORT PERSONNEL SALARY.. .......... .$ 5,910.83 ..
TOTAL SALARY PER WEEK $5,910.83 X 52 WEEKS = $307,363.16 i 12 = $25,613.60 13,524 CUSTOMERS = ............................... .$ 1.893
1.893 f 6.95 = ,272 X 1,000 = ......................................... 272 INDEX
POINTS
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EXHIBIT I11
RESIDENTIAL INSURANCE
COST INDEX
MONTHLY AMOUNTS ARE COMPILED FROM AN AVERAGE OF PREMIUMS FOR THE MONTHS OF
JANUARY, FEBRUARY, MARCH 1988
AVERAGE MONTHLY PREMIUM = $70,824.64
$70,824.64 90 EMPLOYEES = $786.94 PER EMPLOYEE PER MONTH X 12 EMPLOiEES = $9,443.28 PER MONTH
$9,443.28 PER MONTH i 13,524 CUSTOMERS = .698 PER CUSTOMER
.698 f 6.95 = 100 X 1,000 = 100 INDEX POINTS
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EXHIBIT IV
\ RESIDENTIAL MAINTENANCE COST INDEX
MAINTENANCE EXPENSE AMOUNTS ARE DERIVED FROM A QUARTERLY AVERAGE OF THE FOLLOWING ITEMS:
COMPUTATION OF MAINTENANCE COSTS
OUTSIDE SERVICES.. ........................................... .$ 11,349.32
RENTAL AND DEPRECIATION.. ..................................... $ 73,268.52
TRUCK REPAIRS AND PARTS .......................................$ 44,560.73
LUBRICANTS.. ................................................. .$ 2,993.71
132,172.28 TOTAL AVERAGE MONTHLY COST.. ............... .$
AVERAGE MONTHLY COST PER TRUCK ................................ $
($132,172.28 f 43 TRUCKS = $3,073.77 PER TRUCK)
7.4 CARLSBAD TRUCKS X $3,073.77 = $22,745.93 (CARLSBAD MONTHLY COST)
3,073.77
$22,745.93 PER MONTH + 13,524 CUSTOMERS = .................... $ 1.681 PER CUSTOMER
1.681 f 6.95 = .242 X 1,000 = ................................ 242 INDEX POINTS
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EXHIBIT V
\ RESIDENTIAL FUEL COST INDEX
MONTHLY AMOUNT IS AN AVERAGE OF 3 MONTHS USAGE BY THE 7.4 CARLSBAD RESIDENTIAL TRUCKS
THE PRICE OF FUEL IS AN AVERAGE OF THE QUARTER .......... $.52
COMPUTATION OF FUEL COSTS
3.659 GALLONS PER MONTH X $.52 PER GALLON = $1,902.84 PER MONTH $1,902.84 f 13,524 CUSTOMERS = ..................................... .$ .140 PER CUSTOMER
20 INDEX POINTS .140 i 6.95 = ,020 X 1,000 ..........................................
CARLSBAD COMMERCIAL REFUSE INDEX
LANDFILL
SALARIES
INSURANCE
MAINTENANCE
FUEL
COST/ WEEK
2.072
2.941
.770
1.254
.145
7.182
COMPARISON OF BASE INCREASE:
t4EW IIJCEX
204
289
76
123
14
706
1986 INDEX
158
238
118
116
14
644
INCREASE (DECREASE)
46
51
(42)
7
----
62
62 INDEX POINTS INCREASE = 9.6%
644 BASE INDEX
,
- COAST WASTE MANAGEMENT, INC. -
JETAILED SCHEDULE OF EXPENSES BASED ON FIRbr QUARTER - JANUARY, FEBRUARY, MARCH 1988
EXHI-BIT I
COMMERCIAL
COST
LANDFILL - BASIS PER LOAD $ 91 LOAD FEE PER CUSTOMER 81
EXHIBIT I1
SALARIES - PER HOUR
DRIVERS
ROUTE FOREMAN
MECHANICS
SWINGMAN L U B EMAN
TI REMAN
WELDER
BIN MAINTENANCE
BIN DELIVERY DRIVER
YARDMAN
COST PER DUMP
.EXHIBIT I11
INSURANCE
5024 GROUP
5160 GENERAL LIABILITY
5165 WORKERS'COMPENSATION (INCLUDES BONDS)
TOTAL
3 MONTHLY AVERAGE
COST PER BIN
EXHIBIT IV
MAINTENANCE
$ 8.55 14.42
11.00 9.00
8.00
7.00
8.00
7.50
8.55
7.50
$ 55,070.02
57,403.92
100,000.00
$ 212,473.94
$ 70,824.64
..
5015 OUTSIDE SERVICE $ 5016 YARD & BUILDING MAINTENANCE
5045 SMALL TOOLS
5060 DEPRECIATION
5070 PARTS & SUPPLIES
5101 TRUCK REPAIRS
5103 MISCELLANEOUS
5 105 GENERAL REPAIRS
5110 LUBRICANTS
5120 TIRES & TUBES
5262 CONTAINER MAINTENANCE 5265 MAINTENANCE OFFICE EQUIPMENT
5040-2 RENTAL (INCLUDING LEASE)
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TOTAL $
' COST PER BIN $
1 3 MONTHLY AVERAGE
EXHIBIT V 5050 FUEL
COST PER BIN DUMP
10,357.60
4,653.02 49,805.55 5,472.37
170,000.00
37,561.14
57,731.36
888.96
1,844.80
8,981.12
32,028.36
14,350.41
2,842.15
396,516.84
132,172.28
1,783.08
2.072
2.941
.770
INDEX
204
289
76
1.254 123
.145 14
7.182 705 GRAND TOTAL
- - EXHIBIT I
COMMERCIAL LANDFILL COST INDEX
2. NUMBER OF COMMERCIAL TRUCKS, 6 DAYS PER WEEK 2
2.4 NUMBER OF COMMERCIAL TRUCKS, 5 DAYS PER WEEK 2.4 AVERAGE NUMBER OF BIN DUMPS PER LOADS 44
DUMP FEE PER 35-39 CUBIC YARD PACKER $9 1
COMPUTATION OF LANDFILL COSTS
TOTAL AVERAGE LOADS PER MONTH 143
PER DAY = 5.5 LOADS PER DAY X 6 DAYS = 33 LOADS
PER WEEK X 52 WEEKS = 1,716 LOADS PER YEAR f 143
(2 COMMERCIAL TRUCKS (35-39 CU. YDS.) 2.75 LOADS
LOADS PER MONTH)
TOTAL AVERAGE DUMP FEES PER MONTH
(143 LOADS PER MONTH X $91 PER LOAD)
TOTAL AVERAGE LOADS PER MONTH
PER DAY = 2.75 LOADS PER DAY X 5 DAYS = 13.75
LOADS PER WEEK X 52 WEEKS = 715 LOADS PER YEAR
(1 COMMERCIAL TRUCK (35-39 CY. YDS.) 2.75 LOADS
I 12 MONTHS = 60 LOADS PER MONTH)
TOTAL AVERAGE DUMP FEES PER MONTH
(60 LOADS PER MONTH X $91 PER LOAD)
60
TOTAL AVERAGE LOADS PER MONTH 76
PER DAY = 3.5 LOADS PER DAY X 5 DAYS = 17.5 LOADS
PER WEEK X 52 WEEKS = 910 LOADS PER YEAR f 12
MONTHS = 76 LOADS PER MONTH)
( 1.4 COMMERCIAL TRUCKS (35-39 CU. YDS. ) 2.5 LOADS
TOTAL AVERAGE DUMP FEES PER MONTH
TOTAL DUMP FEES PER MONTH
TOTAL AVERAGE NUMBER OF BIN DUMPS PER MONTH (2 TRUCKS X 44 BINS PER LOAD X 2.75 LOADS PER DAY = 242 BIN DUMPS PER DAY X 6 DAYS = 1,452
BIN DUMPS PER WEEK X 52 WEEKS = 75,504 + 12
MONTHS = 6,292 BIN DUMPS PER MONTH)
6,292
TOTAL AVERAGE NUMBER OF BIN DUMPS PER MONTH
(1 TRUCK X 44 BINS PER LOAD X 2.75 LOADS PER
DAY = 121 BIN DUMPS PER DAY X 5 DAYS = 605
BIN DUMPS PER WEEK X 52 = 31,460 i 12 MONTHS
= 2,622 BIN DUMPS PER MONTH)
2 , 622
TOTAL'AVERAGE NUMBER OF BIN DUMPS PER MONTH
(1.4 TRUCKS X 44 BINS PER LOAD X 2.50 LOADS
PER DAY = 154 BIN DUMPS PER DAY X 5 DAYS = 770
BIN DUMPS PER WEEK X 52 = 40,040 i 12 MONTHS = 3,336.6 BIN DUMPS PER MONTH)
AVERAGE COST PER BIN DUMP
(DUMP FEES PER MONTH $25,389 I BIN DUMPS PER MONTH)
$2.072 X 4.3 = 203.6 X 1,000 =
3,337
TOTAL BIN DUMPS PER MONTH
43.75
$ 13,013
$ 5,460
$ 6,916
$ 25,389
12,250
$ 2.072 PER DUMP
204 INDEX POINTS
EXHIBIT I1 c
COMMERCIAL SALARY COST INDEX
2 - DRIVERS 11 HOURS PER DAY 6 DAYS PER WEEK @ $8.55 PER HOUR (22 HOURS X 6 DAYS PER WEEK = 132 HOURS) = ................................ $ 1,128.60
(52 HOURS OVERTIME PER WEEK X $4.275) = $ 222.30
DRIVERS 11 HOURS PER DAY 5 DAYS PER WEEK @ $8.55 PER HOUR
(2.4 X 11 HOURS = 26.4 HOURS PER DAY X 5 DAYS PER WEEK =
132 HOURS X $8.55) = ..................................................... .$
(2.4 X 3 HOURS OVERTIME = 7.2 HOURS PER DAY X 5 DAYS = 36 HOURS X $4.275) = $
...................................
2.4
1,128.60
153.90 ......................................................
4 HELPERS 11 HOURS PER DAY 5 DAYS PER WEEK @ $7.00 PER HOUR PER DRIVER
(4 X 11 HOURS = 44 HOURS PER DAY X 5 DAYS PER WEEK = 220 HOURS X $7.00) = .......................................................... $
(4 X 3 HOURS OVERTIME = 12 HOURS PER DAY X 5 DAYS = 60
1,540.00
HOURS X $3.50) = $ 210.00 ..........................................................
TOTAL WEEKLY DRIVERS/HELPERS WAGES ............... .$ 4,383.40
DRI VERS/HELPERS SALARY PER MONTH .......................................... $ 18,994.73
($4,383.40 PER WEEK X 52 WEEKS = $227,936.80
12 MONTHS = $18,994.73)
SUPPORT PERSONNEL
WELDERS 8 HOURS PER DAY 5 DAYS PER WEEK @ $8.00 PER HOUR ..................$
LUBEMAN 4 HOURS PER DAY 5 DAYS PER WEEK @ $8.00 PER HOUR .................. $
BIN DELIVERY DRIVER 10 HOURS PER DAY 5 DAYS PER WEEK @ $8.55 PER HOUR ...... $
MAINTENANCE MEN 8 HOURS PER DAY 5 DAYS PER WEEK @ $7.50 PER HOUR ........... $ MECHANICS 10 HOURS PER DAY 5 DAYS PER WEEK @ $11.00 PER HOUR ............... $ (20 HOURS OVERTIME PER WEEK @ $5.50 PER HOUR) = .......................... .$
TIREMAN 2.5 HOURS PER DAY 5 DAYS PER WEEK @ $7.00 PER HOUR ................ $
ROUTE FOREMAN 5 HOURS PER DAY 5 DAYS PER WEEK @ $14.42 PER HOUR ............ $ SWINGMAN 4 HOURS PER DAY 5 DAYS PER WEEK @ $9.00 PER HOUR .................. $
YARDMAN 6 HOURS PER DAY 5 DAYS PER WEEK @ $7.50 PER HOUR ................... $ .. TOTAL WEEKLY SUPPORT PERSONNEL WAGES ............... $
SUPPORT PERSONNEL PER MONTH.. .................................................. .$ ($3,933.25 X 52 WEEKS = $204,529.00 f 12 MONTHS = $17,044.08)
TOTAL SALARIES PER MONTH ........................................................ $
(DRIVERS - HELPERS - SUPPORT PERSONNEL)
COST PER BIN DUMP = ............................................................ $
($36,038.81 + 12,251 BIN DUMPS PER MONTH)
2.941 X 4.3 = 12.646 i 43.75 = 289 X 1,000 = ...................................
J
640.00
160.00
470.25 *
600.00
1 , 100.00
110.00 87.50 360.50
180.00
225.00
3,933.25
17 , 044.08
36,038.81
2.941
289 INDEX
PO I NTS
* INCLUDES BIN DELIVERY OVERTIME OF 10 HOURS PER WEEK @ $4.275 = $42.75
1
EXHIBIT 111
COMMERCIAL INSURANCE
COST INDEX
THE MONTHLY AMOUNTS ARE COMPILED FROM THE AVERAGE OF PREMIUMS FOR THE MONTHS OF
JANUARY, FEBRUARY, MARCH 1988
AVERAGE MONTHLY PREMIUM = $70,824.64
$70,824.64 i 90 EMPLOYEES = $786.94 PER EMPLOYEE PER MONTH X 12 EMPLOYEES
= $9,443.28 PER MONTH
$9,443.28 PER MONTH I 12,251 BIN DUMPS = .770 PER BIN DUMP
.770 X 4.3 = 3.311 i 43.75 = 75.6 X 1,000 = 76 INDEX POINTS
...
-.
EXHIBIT IV
COMMERCIAL MAINTENANCE COST INDEX
MAINTENANCE EXPENSE AMOUNTS ARE DERIVED FROM A QUARTERLY AVERAGE OF THE FOLLOWING ITEMS:
OUTSIDE SERVICES.. ........................ .$ 11,349.32
RENTAL 81 DEPRECIATION.. .................... $ 73,268.52
TRUCK REPAIRS - PARTS.. ................... .$ 44,560.73
LUBRICANTS.. .............................. .$ 2,993.71
TOTAL AVERAGE MONTHLY AMOUNT $ 132,172.28
AVERAGE MONTHLY COST PER TRUCK = .......................$ 3,073.77
($132,172.28 { 43 TRUCKS = $3,073.77 PER TRUCK)
MONTHLY CARLSBAD TRUCK COST.. ........................... $
(5 CARLSBAD COMMERCIAL TRUCKS X $3,073.77 = $15,368.86)
15,368.86
COST TO CUSTOMER PER BIN DUMP ........................... $
($15,368.86 f 12,251 BIN DUMPS PER MONTH)
1.254
1.254 X 4.3 = 5.392 + 43.75 = ,123 X 1,000 = 123 INDEX POINTS
..
.
EXHIBIT V
COMMERCIAL FUEL COST INDEX
MONTHLY AMOUNT IS AN AVERAGE OF 3 MONTHS USAGE BY THE CARLSBAD COMMERCIAL TRUCKS.
THE PRICE OF FUEL IS AN AVERAGE OF THE QUARTER.
3,429 GALLONS PER MONTH X $.52 PER GALLON = $1,783.08 PER MONTH
COST PER BIN DUMP = ..................................................... $ .145
($1,783.08 12,251 BIN DUMPS = $.145 PER BIN DUMP)
$.145 X 4.3 = 623 i 43.75 = .014 X 1,000 = 14 INDEX POINTS
.I
. ,-
PROPOSED CARLSBAD COMMERCIAL BIN RATES
PRESENT
MONTHLY RATE FREQUENCY FOR ONE BIN
1 X per week $ 43.75
2 X per week 70.78
3 X per week 97.81
4 X per week
5 X per week
6 X per week
124.83
151.86
178.89
PROPOSED MONTHLY RATE
$ 47.95
79.18
110.41
141.63
172.86
204.09
.
PROPOSED CARLSBAD COMMERCIAL CAN RATE
FREQUENCY PROPOSED RATE
1 X per week
2 X per week
3 X per week
4 X per week
5 X per week
$ 15.59
31.18
46.76
62.35
77.93
BOX SIZE
A
B
C
D
PROPOSED CARLSBAD DRAG-ON BOX RATE
SERVICE FEE DISPOSAL SITE FEE
$ 122.32 + $ 20.00
122.32 + 39.00
122.32 + 59.00
122.32 t 79.00
NEW RATE
= $ 142.32
161.32
181.32
201.32
- -
- -
- -
.
c ,
PROPOSED CARLSBAD RESIDENTIAL RATES
Current Monthly Rate for Weekly Collection:
Proposed Monthly Rate for Weekly Collection:
Current Monthly Rate for Backyard Service in
Rancho La Costa for Weekly Collection:
Proposed Monthly Rate for Backyard Service in
Rancho La Costa for Monthly Collection:
$ 6.95
7.60
8.93
9.76
COAST WASTE MANAGEMENT, INC.
RATE COMPARISONS
RESIDENTIAL
El Cajon City
Escondi do City
La Mesa
Lemon Grove
Oceanside
Chula Vista
National City
Carl s bad
Vista City
San Marcos City
San Marcos County
Enci ni tas
Solana Beach
El Cajon County
Del Mar
Poway
Rancho Santa Fe
Ramona
Escondido County
Vista County
Fa1 1 brook
Bonsall/San Luis Rey Downs
Pauma Valley
Val ley Center
6.15
6.40
6.72
6.72
6.77
7.10
7.25
7.60 *
7.65
7.65
7.65
8.15
8.25
8.55
8.80 **
9.20
9.95
10.00
11.45
11.70
12.25
12.50
13.10
13.10
Average rate for the 24 communities listed: $ 8.94
* Rate proposed for City of Carlsbad approval
** Proposed rate increase for City of Del Mar
COAST WASTE MANAGEMENT, INC.
RATE COMPARISONS
COMMERCIAL
1 BIN 1 TIME PER WEEK
El Cajon County
Chula Vista
Oceans i de
Escondido City
Lemon Grove
El Cajon City
Encini tas
Solana Beach
Vista City
San Marcos City
National City
Carl sbad
Rancho Santa Fe
Poway
Del Mar
Vista County
San Marcos County
Escondido County
Fa1 1 brook
Ramona
Bonsall/San Luis Rey Downs
Pauma Valley
Valley Center
$ 42.00
42.65
42.29
43.03
44.00
44.50
46.18
46.20
46.20
46.25
46.75
47.95 *
49.10
52.05
56.08 **
57.75
57.85
58.05
58.25
60.00
64.00
64.25
64.25
The average of the 23 areas listed is: $ 51.28
*Proposed rate for the City of Carlsbad
**Proposed rate increase for City of Del Mar
Y
PHONE: 153-12
01 452a10
COAST WASTE MANAGEMENT, INC.
5980 EL CAMINO REAL, P. 0. BOX 947, CARLSBAD, CALIFORNIA 92008
McDOUGAL SANl TATION
CARLSBAD DISPOSAL CO.
SOLANA BEACH DISPOSAL CO.
DEL MAR DISPOSAL CO.
RANCHO SANTA FE DISPOSAL CO.
SORRENTO VALLEY DISPOSAL CO.
August 2, 1988
Mr. Ralph Anderson Utilities and Maintenance Director City of Carlsbad
2075 Las Palmas Carlsbad, CA 92008-1519
RE: Community Support
Dear Ralph:
Accompanying our Refuse Index Review, we have included the following data on Coast Waste Management, Inc.'s donated community services and Liberty Recycling's proceeds for recyclables collected in the City of Carlsbad.
During the past year, Coast Waste Management, Inc. has returned a total of
$19,074.92 in donated services to churches, schools, and civic organizations located in Carlsbad. These organizations have been provided refuse services at no charge or for disposal site fee charges only. the organizations and groups that were provided these services. Attached is a listing of
Liberty Recycling, a division of Coast Waste Management, Inc., has placed throughout the community recycling bins which are serviced weekly for the organizations, schools, and churches. These bins are provided at no cost to these groups. is enclosed for your information. $89,404.00 for recyclables.
A list of those organizations and the amounts paid to each one Additionally, we have paid out to the residents
Coast Waste Management, Inc. will continue to provide community support through the donating of services and equipment.
Sincerely,
Conrad B. Pawelski Vice-president & General Manager
CBP/mb
Encl s;
A SATISFIED CUSTOMER IS OUR FIRST CONSIDERATION
-.
COAST WASTE MANAGEMENTy INC.
RECY CL I NG
JANUARY 1, 1987 TO DECEMBER 31, 1987
A1 ta Mira #4
Buena Vista School
Carlsbad Band Aides
Carl sbad Senior Softball
El Camino Estates
Kelly School
Lake Shore Gardens
Lanakai Lanes
Magnolia School
Pi 1 grim Church
Pine School
Project Oz
Rancho Carlsbad Garden Club
St. Elizabeth's Catholic Church
St. Patrick's Church
Boy Scout Troop #784
Sea Quest
TOTAL
$ 855.18
805.78
736.85
853.21
378.84
1 , 494.08
1,335.26
340.17
1,988.07
302.91
429.11
122.08
1,695.38
2,356.96
4,490.76
259.89
179.27
18,623.80
c
COAST WASTE MANAGEMENT, INC.
DONATED COMMUNITY SERVICE
Carlsbad Spring Clean Up
Carl sbad Spring Fai re
Carlsbad Fall Faire
City of Carlsbad Redevelopment
Boys and Girls Club of Carlsbad
Christmas Tree Clean Up
Parks and Recreation Coastal Clean Up
Batiquitos Lagoon Festival
Carlsbad Rotary Club
Oktoberfest
Holiday Park - July 4th
Carlsbad Arts Commission
Uni sys
La Costa Heights School
.- , I” e
September 22, 1988
TO: JAMES F. ELLIOTT SUBJECT: REVIEW OF REFUSE RATE INDEXES
I have completed my review of the Refuse Rate Indexes as
compiled by Coast Waste Management, Inc. relative to their
request for an increase of the refuse rates within the city of Carlsbad.
My review included the testing of the arithmetical accuracy
of their compilation as well as the verification of the data
included in the assumptions. I detected some minor discrepan-
cies, and they were reported to their staff before the final transcription was prepared.
Again, it should be noted that the indexes were determined in 1980 to be effective in measuring a rising trend that would
give rise to the need for a rate increase, and was never in-
tended to be indicative of the total cost of operations. In
this respect, I have not found any need to adjust their pre-
sentation, having tested the compliance of and the consistent
application of the index principles, and hereby recommend
that it be accepted.
The attached schedule was prepared from the financial state-
ments of Coast Waste Management, Inc. for the six months
ended June 30, 1988. The schedule was prepared to test the
financial impact of the initiation of the payment of a five percent franchise fee on the overall operations relative to the collection of refuse within the city of Carlsbad. The assumptions for the allocation of Shop Expenses and General and Administrative Expenses have been stated, and are not
the normal accounting techniques of the company.
This report, combined with the draft of the Rate Review
letter to Mr. Conrad B. Pawelski, should conclude my assign-
ment. Ralph Anderson is awaiting copies, and will contact you directly when he has completed his review.
A1 D. Capuchin0 Finance Department Auditor
cc: Ralph Anderson Utilities & Maintenance Director
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..
RESIDENTIAL REFUSE RATE SURVEY
THE FC DWIN REP T IS A SUMMARY OF THE SURVEY OF RESIDENTIAL REFUSE RATES
OF LOCAL COMMUNITIES.
1. Residential refuse rates of San Diego County Incorporated Cities of comparable
size to Carlsbad:
RESIDENTIAL STREET RECYCLING TOTAL MAIN BILLING
CITY RATE FEE CHARGED CUSTOMER CONTRACT CHARGE FEE REFUSE SWEEPING FEE COST TO REFUSE SERVICE FRANCHISE
ES COND ID0 $6.40 -0- -0- $6.40 ED1 INCLUDED' 10% LA MESA $6.72 -0- -0- $6.72 EDCO N/A 4% LEMON GROVE $7.00 -0- -0- $7.00 EDCO N/A 4% NATIONAL CITY $7.25 -0- -0- $7.25 EDCO N/A 2% CHULA VISTA $7.35 -0- -0- $7.35 LAIDLAW N/A 5% EL CAJON $7.60 -0- -0- $7.60 UNIVERSAL N/A 3% CARLSBAD2 $7.60 -0- -0- $7.60 COAST INCLUDED~ 5z6 VISTA ' $7.65 -0- -0- $7.65 VISTA N/A 5%
DEL MAR $8.00 -0- 55c $8.55 COAST INCLUDED~ 5%
5x 3 SAN MARCOS $7.65 -0- -0- $7.65 MASHBURN N/A
SOLANA BEACH $8.25 -0- -0- $8.25 COAST N/A 2xBASE +
ENCINITAS $8.15 -0- 55c $8.70 MASHBURN N/A N/A
POWAY $9.20 -0- -0- $9.20 MASHBURN N/A, 2xBASE -k3 OCEANSIDE $6.77+$2.954 39c -0- $10.11 OCEANSIDE INCLUDEDS N/A
NOTES :
1 - Billing service charge is included in the franchise fee.
2 - Residential rate $7.60 reflects the proposed rate increase requested
3 - Franchise fee is based on $1,000 plus $2.00 multiplied times the customer
4 - Oceanside customers pay $6.77, which goes to Oceanside Disposal, and $2.95,
5 - Included in the $2.95 fee mentioned in Note 4.
6 - Not now being collected.
by Coast Waste Management.
base, per year.
which goes to the City of Oceanside to cover billing,administration, etc.
Existing rate is $6.95.
2. Residential refuse rates for unincorporated comunities:
AREA RESIDENTIAL REFUSE RATE
RANCHO SANTA FE
RAMONA
FALLBROOK
BONSALL
PAW VALLEY
VALLEY CENTER
$9.95 $9.00 - $18.00 $12.25 $12.50 $13.10
$13.10
PAGE 1 OF 3
EXHIBIT 4
A. Comparisons of Incorporated Cities residential refuse rates indicate:
MEAN - $7.54
MEDIAN - $7.60
B. FRANCHISE FEE: All Incorporated Communities except Oceanside and
Encinitas charge their contractors a franchise fee.
C. SERVICE CHARGE: Four communities do their own billing, in the remaining
Cities the contractors are responsible for the billing
of the customers.
D. All rates provided have been newly revised to compensate for County Landfill
fees. Most rates listed are effective as of 7/1/88.
E. Four communities have recycling programs in effect-
-0ceanside has recycling fee included in the refuse rate charge
-Encinitas and Del Mar charge 55C in addition to the
-The City of Solana Beach subsidizes their recycling program,
residential refuse rate.
with no additional charge to refuse customers.
RONALDA. LANE
Administrative Intern
PAGE 2 OF 3
EXHIBIT 4
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