HomeMy WebLinkAbout1990-08-07; City Council; 10760; Refuse Collection Rate Increase Landfill Tipping2 0 F 0 a
- CITY OF CARLSBAD - AGEN 1 BILL
REFUSE COLLECTION RATE INCREASE:
MTG. 8/7/90 PASS THROUGH OF LANDFILL
DEPT. U&M TIPPING FEE INCREASES
RECOMMENDED ACTION:
ffl42B.f Adopt Resolution approving an increase in monthly refuse collection rates for
residential and commercial refuse collection.
mM EXPLANATION:
At the City Council meeting of March 13, 1990, during the staff presentation of the
proposed Refuse Collection and Recycling Contract between the City and Coast
Waste Management (CWM), the Council was advised that City implementation of
a recyclables collection program, AB 939 implementation and County staff
recommended landfill tipping fee increases could result in a residential refuse
collection rate increase from $7.60/mo. to $1 l.OO/mo. over the next twelve months.
The curbside recyclables collection program would increase the residential rate by
$1.00/mo. with known and expected County landfill tipping fee increases and AB
939 implementation accounting for the remaining $2.40/mo. In recognition of the
potential for a substantial increase in County landfill tipping fees, the proposed
Contract contained a clause "Unusual Cost Increases" which was intended to permit
CWM to request a rate increase to pass through the increases.
The City Council accepted staffs recommendation and approved the new Refuse
Collection And Recyclables Collection Contract. The recyclables collection program
began in June and is being implemented, Citywide, in phases with the final phase
to be completed in the last week of August, 1990. The $l.OO/mo. rate increase to
fund a portion of the recyclables collection program was also approved.
Other than the rate increase for the new curbside recyclables collection service,
CWM has not requested or received a rate increase for refuse collection services
since December 1, 1988. Since that time the County has increased the landfill
tipping fees by 71%, from $10.50/ton to $13.50/ton on September 1, 1989 and
subsequently to $18.00/ton effective July 1, 1990. In addition, the County began
to actually weigh the refuse trucks at the landfill on July 1, 1990. Prior to July 1,
landfill fees were based on the estimated weight; an amount derived from the
average capacity of the refuse trucks. Pursuant to Section 6 "Unusual Cost
Increases" of the Contract, CWM has requested that the City Council consider a rate
increase to pass these tipping fee increases through to the rate payer. Staff concurs
that these tipping fee increases constitute cost increases for which the "Unusual Cost
Increases" clause of the Contract was intended.
PAGE 2 OF AB# '4 Tbb
The Contractor has requested an increase from $7.6O/mo. to $9.10/mo.($l.50/mo.)
for residential collection and from $47.95/mo. to $57.20/mo.($9.25/mo.) for basic
commercial bin, once weekly collection (Exhibit 2). The curbside recyclables
collection program fee of $l.OO/mo. is in addition to the refuse collection costs.
Coast Waste Management (CWM) based the rate increase request on weight data
obtained by weighing the refuse trucks at the Contractors scale during April, 1990.
These weights were then multiplied times the proposed tipping fee of $18.00/ton
to arrive at the requested rate increase. At the time the rate increase request was
made, actual landfill weights were not available for use in the calculations.
Subsequent to receiving the rate increase request, staff obtained historical weight
data from the County and actual weight data from the landfill scales since July 1,
1990 to evaluate the rate request (Exhibit 3). The historical and actual data appear
to substantiate the Contractor's 19% requested rate increase for commercial
customers, however, the same data does not fully support the requested residential
rate increase. The data appears to support a residential rate increase of $l.OO/mo.
rather than the $1.50/mo. requested by the Contractor.
The Contractor and staff agree that the lesser residential rate increase of $1 .OO/mo.
is appropriate in view of the limited actual data available. After three to six months
of actual experience with the system of charging by actual weight, more information
will be available for staff and the Contractor to more accurately determine the
impact of the new weight based rate structure. At that time an outside auditor,
with experience in the solid waste industry, will be retained by the City to perform
an audit of the landfill tipping fee costs, and other costs, to assure that the
appropriate rates have been established.
In addition, staff and the Contractor agree that the present method of requesting
and evaluating proposed rate increases is both cumbersome and time consuming.
Moreover, the present process requires the Contractor to actually experience cost
increases in excess of 7% before a rate increase may be requested. Thus, even when
it is known in advance what the increased cost will be, as in tipping fee increases,
a rate increase cannot be requested until the increase is actually experienced. This
dilemma usually requires the Contractor to absorb the cost increases until sufficient
data is available to substantiate a rate increase request. To alleviate this situation,
the outside auditing firm will also be asked to assist staff in developing a rate
increase evaluation process mutually agreeable to both parties.
L
PAGE 3 OF AB /' 748
The residential refuse collection rate will be $9.60 per month, an increase of one
dollar ($1.00) and an increase of 19% for commercial users. If approved by the
City Council the rates will take effect on August 1, 1990.
EXHIBITS:
1. Resolution No. 90-285 .
2.
3.
4. Refuse Rate Comparison.
Coast Waste Management, Inc. request "County of San Diego Landfill Rate
Increase".
County of San Diego, "Analysis of weights from June 18-26, 1989 and July
1-11, 1990.
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RESOLUTION NO. 90-285
A RESOLUTION OF THE CITY OF CARLSBAD,
CALIFORNIA, REVlSING THE MONTHLY REFUSE
COLLECIION AND CURBSIDE RECYCLING RATES FOR
THE CrrY OF CARLSBAD
WHEREAS, the City of Carlsbad has contracted with Coast Waste
Management, Inc. for refuse collection services within the City; and
WHEREAS, the Refuse Collection Contract permits Coast Waste Management
to request a rate increase in the event of "Unusual Cost Increases"; and
WHEREAS, Coast Waste Management has requested a rate increase pursuant
to the "Unusual Cost Increases" clause of the Contract as a result of 71% increase
in tipping fees at County landfills; and
WHEREAS, the City agrees that Coast Waste Management has experienced
"Unusual Cost Increases"; and
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 on premise collection of residential
refuse and recyclables shall be a monthly charge of $9.60, an increase of $1.00.
3. That the rate for once-a-week on premise collection of residential
refuse and recyclables shall be a monthly charge of $11.77, and increase of $1.00.
4. That the monthly rates to be charged for commercial refuse and
recyclables collection shall be:
///
///
///
NUMBER OF PICKUPS PER WEEK
No.
of
Bins - 1 - 2 - 3 - 4 - 5 - 6
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15
2
3
1 $58.20 $97.07 $135.95 $174.81 $213.69 $252.56
6. 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
4 11 COMMERCIAL CAN STOPS
1 x Week $18.15/Month
2 x Week $35.28/Month
3 x Week $52.42/Month
4 x Week $69.55/Month
5 x Week $86.69/Month /I 5. That the monthly charge for apartment and condominium refuse and
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recyclables collection shall be:
No. of Units
1-3 $9.60/Month per unit
4-5 $9.09/Month per unit 6 or more $8.86/Month per unit
delivery charge per box. The following dump charges apply to the following classes 16
17 of drag-on boxes. 18
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A. (19 cu. yds. or less) $216.32
B. (20-29 CU. yds.) $211.32
C. (30-39 CU. yds.) $204.12
D. (40-49 CU. yds.) $195.56
(The above rates include the applicable dump fees).
Demurrage charges on drag-on boxes shall be $3.00 per day in the event the 22 II
23 11 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
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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.
1, 1990.
8.
1, 1990.
9.
That the commercial rates established hereby shall be effective August
That the residential rates established hereby shall be effective August
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
, 1990, and of the City of Carlsbad, California, held on the 7th day of
by the following vote, to wit:
August
AYES: Council Members Lewis, Kulchin and Mamaux
NOES: None
ABSENT: Council Members Pettipe a
ATTEST:
it flak
ALETHA L. RAUTENKRANZ, City Clerk
5960 EL CAMINO REAL, P. 0. BOX 947, CARLSBAD, CALIFORNIA 92008 PHONE: 753-9412
OT 452-9810 MCDOUGAL SANITATION
CARLS6AD DISPOSAL CO.
SOLANA BEACH DISPOSAL CO.
DEL MAR DISPOSAL CO.
RANCHO SANTA FE DISPOSAL CO.
SORRENTO VALLEY DISPOSAL CO.
rl
June 8, 1990
Ralph W. Anderson
Director of Utilities & Maintenance
City of Carlsbad
2075 Las Palmas Drive
Carlsbad, CA 92009-1519
RE: County of San Dieqo Landfill Rate Increase
Dear Ralph:
The County Board of Supervisors adopted increases for trash
disposal at all County Landfills effective July I, 1990. The
increase takes the rate from 913.50 to 418.00 or a 33 percent
increase in the charge per ton. This disposal site fee increase,
however, is unlike other increases adopted in prior years by the
County, in that along with the price per ton increase the method of
calculating the load size has changed to charqinq by weight.
This increase has a double impact on effecting the cost of
providing refuse removal service to our customers. Our adjustments
are further impacted in the fact that we had not requested an
adjustment for the September 1989 County of San Dieqo landfill
disposal site fee increase. With these significant changes to the
cost of service we have no other alternative than to request an
adjustment to the present rates for service in the City of
Carlsbad. Our proposed rate adjustments are to cover the
increased landfill disposal costs imposed by the County of San
. Dieqo and have no general rate increases in the adjustment. Our
request will apply to the unusual cost increase as delineated on
page 6, paragraph 6 of the Refuse Removal Agreement.
In the past the County of San Diego had adopted rate increases by
adjusting the price upward based on their projected tonnage for the
next year'to balance 'their operating budqet. The 1990 County
increase was adjusted in this manner as well as convertinq to
weighing all trucks upon entry to the landfill. This conversion to
charginq by weight from the prior method of charging on a flat fee
per truck load significantly chanqes the cost. The estimated load
size had not been adjusted to reflect the present carryinq
capacities of all of our refuse vehicles.
We, in order to access the impact of the change during the month of
April, conducted-an in depth weight study of our trucks to
ascertain the effect of the increase. The residential and
commercial customers will have the following adjustments due to the
County d isposa 1 site fee increase:
EXHIBIT 2
PAGE 2
RESIDENTICILSERVICE
To determine the new fees for refuse disposal we conducted over a
four week period a weight study in the City of Carlsbad. After
completion of the study our trucks were found to average 7.49 tons
per load. Our average number of customers per residential load was
204 residents. The rate below is calculated using the new rate of
$18.00/ton versus the prior rate used in 1988 when the collection
charge was last adjusted.
1990 rate of $18.00 x 7.49 tons = 6134.82
NET INCREME IN DISPOSAL SITE FEE 971.82
Less: 1988 rate per truck 63.00
$71.82 / 204 RESIDENTS = 9.352 per week
.352 per week X 4.3 weeks per month = $1.51
81.51 rounded to the nearest 9.05 = $1.50 / month increase
PRIOR RESIDENTIaL RATE PER MONTH INCLUDING RECYCLING 88.60
PROPOSED MONTHLY RESIDENTIAL REFUSE RATE INCLUDING RECYCLING
*lo. 10
COMMERCICU,SERVLCE A similar weight study was conducted over a four week period of our
commercial frontload vehicles. Their average load weight totaled
9.85 tons which we rounded to 10.00 tons per load. The average
number of bins per load was 46 bins. The calculation below shows
the adjustment from the present load charge with the new rate as
adopted by the County.
10.00 tons per truck load x $18.00 = 6180.00
1990 landfill fee per truck $180.00
NET INCREASE PER LOAD 9 99.00 Less: 1988 landfill'fee per truck 81.00
$99.00 increase per load / 46 bins = 2.152 weekly
increase
$2.152 x 4.3 weeks = 8 9.29 adjustment per bin dump
PRIOR RATE FOR 1 X WEEK SERVICE INCLUDING RECYCLING CHARGE
$48.95
PROPOSED RATE FOR 1 X WEEK BIN SERVICE INCLUDING RECYCLING
CHCIRGE 958.20
PAGE 3
These are our proposed rates.for your review and analysis. We
request for the Council to approve the adjustments to be effective
July 1, 1990 when the rates will be increased by the County of Sen
Dieqo.
These adjustments have a greater impact to all since they cover two
rate increases plus the conversion from a vehicle size fee to
actual weight fee eliminating the K factor.
If you have any questions, please give me a call at your earliest
convenience.
Sincerely,
Conrad 8. Pawelski
Vice President/General Manager
COAST WASTE MANAGEMENT, INC.
REFUSE COLLECTION AND RECYCLING SERVICE RATE 4DJUSTMENTS
CITY OF CARLSBAD
PROPOSED RATES FOR JULY 1, 1990
TYPE 01 SERVICE
RESIDENTIAL RATES
(When Applicable): Monthly
Curb
Backyard, Special
COMMERCIAL CAN RATES
1 x week
2 x week
3 x week
4 x week
5 x week
COMMERCIAL 3
1 x week
2 x week
3 x week
4 x week
5 'x week
6 x week
cubic Yard Bins:
COMMERCIAL Roll Off Service:
Box Sizes A, E, C,
(on call)
Delivery charge 1st box
Dernurage charge per
day over 7 days
CURRENT RATE
Rate
8.60
10.76
%16.60
32.18
47.77
63.35
78.94
Monthly Rates
$48.95
78.97
108.20
137.81
167.44
197.06
9122.32 + DSF
$27.50
S3.00
PROPOSED RATE
%10.10
12.26
*le. 15
35.28
52.42
69.95
06.69
sS8.20
97.07
135.95
174.81
213.69
252.96
$122.32
+ DSF
$39.50
J3.00
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