CC 2013-05-14_09.b. So County Sanitary Service Solid Waste Rate IncreaseFROM: STEVEN ADAMS, CITY MANAGER �A
CONSIDERATION OF - • M SOUTH COUNTY
SERVICE FOR INTEGRATED SOLID WASTE COLLECTION RATE
INCREASE
RECOMMENDATION:
It is recommended the City Council adopt the attached resolution approving the South
County Sanitary Service (SCSS) integrated solid waste collection rate increase.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no cost to the City or impact on staff resources related to the proposed action.
There will be a minor increase in franchise fee revenue from the increase.
BACKGROUND:
On November 12, 1997, the City entered into a franchise agreement with South County
Sanitary Service for collection, diversion and disposal of solid waste. On August 24,
1999, the City also entered into a franchise agreement with SCSS for recycling
services. The agreements specify procedures for rate adjustment requests, review and
approval. At the June 10, 2008 meeting, the City Council approved an Amended and
Restated Solid Waste Collection, Recycling and Greenwaste Franchise Agreement
(Franchise Agreement) with SCSS, which extended the franchise for a 15 -year period.
Per the franchise agreement, rate review is established in accordance with the "City of
San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid
Waste Management Rates" (Manual). The Franchise Agreement allows for a base rate
adjustment every three years and interim rate increases in the other years. In interim
rate periods, the operator is limited to increases resulting from inflation, tipping fee
adjustments, and franchise or regulatory fee increases. During base rate years, the
operator is able to request adjustments due to changes in other operational costs as set
forth in the Manual.
Item 9.b. - Page 1
CITY COUNCIL
INTEGRATED SOLID WASTE 4
MAY 14, i
The City last received and approved a 5.15% interim year rate increase from SCSS in
December 2011. On September 26, 2012, the City received a base rate increase
request of 3.2 %. At the January 8th meeting, staff presented alternative rate structures
and the Council selected one of the options that included the addition of a 20- gallon bin.
Public notice was distributed per the requirements of Proposition 218. However, at the
March 12th meeting, the public notice was found to be flawed, the operator was
requested to re- notice the public hearing for May 14th, and the operator was directed to
remove the 20- gallon bin option and return to the existing rate structure.
ANALYSIS OF ISSUES:
The City contracted with consultant Bill Statler to prepare a review of the rate increase
request to determine if it complies with the provisions of the City of San Luis Obispo
Rate Setting Process and Methodology Manual for Integrated Solid Waste Management
Rates. Mr. Statler has expertise on rate adjustments since he was responsible for
development of the manual when he served as the Director of Finance for the City of
San Luis Obispo. A copy of the review is attached and Mr. Statler will present the
findings at the City Council meeting. He has determined the basis for the rate increase
request is consistent with the Manual. As a result, staff recommends approval.
The review was contracted for jointly with the City of Pismo Beach, City of Grover
Beach and Oceano Community Services District. The rate increase has been approved
by each of the other jurisdictions.
There were no increases in 2009, 2010 and 2012. Part of the 5.15% interim rate
increase in 2011 was due to arrangements to compost greenwaste material at the Engel
& Gray facility in Santa Maria, which received prior approval from the Council at the
recommendation of the San Luis Obispo Integrated Waste Management Authority.
The proposed change in rates for residential accounts is as follows:
32- Gallon Container: Current Rate - $15.47 New Rate - $15.97
64 Gallon Container: Current Rate - $20.11 New Rate - $20.75
96 Gallon Container: Current Rate - $24.76 New Rate - $25.55
Notices of the proposed rate increase were mailed to record property owners (and
tenants responsible for the account) more than 45 days prior to the public hearing. If, at
the conclusion of the public hearing, written protests against the proposed rate increase
are received from a majority, the City may not adopt the proposed rates. There are
currently 6,075 accounts. Therefore, 3,038 would represent a majority. At the time the
report was prepared, there were four protest letters received.
The City Council consistently places a high priority on ensuring that increases in rates,
fees and taxes levied on the City's residents are minimized as much as possible. While
the Rate Setting Process and Methodology Manual provides limited discretion to the
Council when reviewing individual rate increases, it is important to emphasize the efforts
Item 9.b. - Page 2
CITY COUNCIL
INTEGRATED SOLID WASTE RATE INCREASE
MAY /:. /.
PAGE
by Council to institute rate increase protections into the process and Franchise
Agreement. The Rate Setting Process and Methodology Manual was designed to
ensure that the operator can only be reimbursed for appropriate and reasonable costs
through their rates. Most importantly, a clause was added to the Franchise Agreement
by the Council when it was renewed that provides the City with the ability to terminate
the Agreement if rate increases ever exceed the cumulative cost of living increase up to
that date. As a result, while the operator would otherwise be allowed a 5.4% increase
under the provisions of the Rate Setting Process and Methodology Manual, they have
requested only a 3.2% increase due to the COLA limitation.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
- Adopt a Resolution approving the rate increase of 3.2 %;
- Continue the item and request additional information;
- Do not approve an increase if justification cannot be found in the rate review;
- Do not approve the increase if a majority of protests are received;
- Provide staff direction.
ADVANTAGES:
Approval of the rate increase is consistent with the terms of the existing Franchise
Agreement. Quality of service provided by South County Sanitary Service has been
good. Therefore, the recommended action will enable continuation of uninterrupted
refuse collection and recycling services at a reasonable fee level.
DISADVANTAGES:
While staff believes the fee increase request is reasonable and complies with the terms
of the Franchise Agreement, any increase in fees results in a negative financial impact
to the City's residents.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
South County Sanitary Service was required to mail notices to all customers and
property owners 45 days prior to the public hearing per Proposition 218 and related
implementation regulations. A copy of the Proposition 218 notice is attached, which
was reviewed by the City Attorney prior to distribution. A copy of all protest letters
received will be distributed to the Council.
Attachments:
1. Interim Year Rate Increase Request
2. Solid Waste Rate Review
3. Proposition 218 Public Notice
Item 9.b. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ESTABLISHING INTEGRATED SOLID
WASTE COLLECTION SERVICE RATES
WHEREAS, the City of Arroyo Grande establishes rates and charges for solid waste,
recycling and green waste collection services pursuant to Public Resources Code
Section 40059 (a) and AG MC §§ 8.32.100 and 8.32.210.
WHEREAS, South County Sanitary Service, Inc. has submitted a rate increase
application (the "application ") in accordance with the City's franchise agreements for
solid waste, recycling and green waste collection services; and
WHEREAS, the application has been comprehensively reviewed in accordance with the
City's rate - setting policies; and
WHEREAS, notices of the proposed rate increase were sent to property owners and
tenants in accordance with the requirements of Proposition 218 and a public hearing
was held on May 14, 2013 to consider protests against the proposed rate increase; and
WHEREAS, it was determined at the conclusion of the public hearing that a majority
protest to the proposed rate increase does not exist.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo
Grande as follows: The application for a rate increase is hereby approved and the
integrated solid waste, recycling and green waste collection service rates set forth in
Exhibit "A" attached hereto and incorporated herein shall become effective on June 1,
2013.
On motion of Council Member
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
, seconded by Council Member
the foregoing Resolution was passed and adopted this
day of , 2013.
Item 9.b. - Page 4
RESOLUTION NO.
PAGE 2
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 9.b. - Page 5
EXHIBIT A
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 1, 2013
CITY OF ARROYO GRANDE
Service Description
Pickups
Per Week
Current Monthly
Rate Effective
11 -1 -2011
Proposed Rate
Adjustment %
Proposed Monthly
Rate Effective
06/01/2013
RESIDENTIAL:
32 Gallon Waste Wheeler
1
$15.47
3.20%
$15.97
64 Gallon Waste Wheeler
1
$20.11
3.20%
$20.75
96 Gallon Waste Wheeler
1
$24.76
3.20%
$25.55
TWO -64 Gallon Waste Wheelers
1
$29.40
3.20%
$30.34
ONE 64 & ONE 96 Gallon
1
$34.06
3.20%
$35.15
TWO -96 Gallon Waste Wheelers
1
$38.70
3.20%
$39.94
Garbage extras (per bag)
$4.38
3.20%
$4.52
Extended Vacation Service
$12.55
3.20%
$12.95
Residential customers must use the waste wheelers
provided by the garbage company.
Notations in parenthesis () refer to information found at the end of this rate schedule, on page 4.
APARTMENTS, TRIPLEX, DUPLEX
Rates are the same as commercial rates (below).
COMMERCIAL DUMPSTERS - ALL
AREAS:
1 yd dumpster
1
$76.42
3.20%
$78.87
1 yd dumpster
2
$111.50
3.20%
$115.07
1 yd dumpster
3
$146.62
3.20%
$151.31
1 yd dumpster
4
$187.91
3.20%
$193.92
1 yd dumpster
5
$220.92
3.20%
$227.99
1 yd dumpster
6
$262.22
3.20%
$270.61
1 yd dumpster
7
$318.72
3.20%
$328.92
1.5 yd dumpster
1
$86.74
3.20%
$89.52
1.5 yd dumpster
2
$134.221
3.20%
$138.52
1.5 yd dumpster
3
$189.99
3.20%
$196.07
1.5 yd dumpster
4
$247.79
3.20%
$255.72
1.5 yd dumpster
5
$301.48
3.20%
$311.13
1.5 yd dumpster
6
$340.72
3.20%
$351.62
1.5 yd dumpster
7
$398.95
3.20%
$411.72
2 yd dumpster
1
$97.07
3.20%
$100.18
2 yd dumpster
2
$163.13
3.20%
$168.35
2 yd dumpster
3
$231.28
3.20%
$238.69
2 yd dumpster
4
$305.59
3.20%
$315.37
2 yd dumpster
5
$377.87
3.20%
$389.97
2 yd dumpster
1 6
1 $423.30
3.20%
$436.85
2 yd dumpster
7
1 $492.18
3.20%
$507.93
3 yd dumpster 1 $115.62
3.20%
$119.31
3 yd dumpster
2
$218.88
3.20%
$225.88
3 yd dumpster
3
305.591
3.20%
$315.37
3 yd dumpster
4
$398.51
3.20%
$411.26
3 yd dumpster
5
$472.86
3.20%
$487.99
3 yd dumpster
6
1 $563.70
3.20%1
$581.74
3 yd dumpster
7
1 $720.00
3.20%1
$743.03
Item 9.b. - Page 6
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 1, 2013
CITY OF ARROYO GRANDE
Service Description
Pickups
Per Week
Current Monthly
Rate Effective
11 -1 -2011
Proposed Rate
Adjustment %
Proposed Monthly
Rate Effective
0610112013
COMMERCIAL DUMPSTERS - ALL
AREAS Con't :
4 yd dumpster
1
$144.55
3.20%
$149.18
4 yd dumpster
2
$256.04
3.20%
$264.23
4 yd dumpster
3
$367.53
3.20%
$379.29
4 yd dumpster
4
$472.86
3.20%
$487.99
4 yd dumpster
5
$584.36
3.20%
$603.06
4 yd dumpster
6
$693.81
3.20%
$716.01
4 yd dumpster
7
$883.58
3.20%
$911.85
6 yd dumpster
1
$216.83
3.20%
$223.77
6 yd dumpster
2
$384.06
3.20%
$396.35
6 yd dumpster
3
$551.30
3.20%
$568.94
6 yd dumpster
4
$709.29
3.20%
$731.99
6 yd dumpster
5
$876.54
3.20%
$904.59
6 yd dumpster
6
$1,040.72
3.20%
$1,074.02
6 yd dumpster
7
$1,325.37
3.20%
$1,367.78
8 yd dumpster
1
$289.10
3.20%
$298.35
8 yd dumpster
2
$512.08
3.20%
$528.47
8 yd dumpster
3
$735.06
3.20%
$758.58
8 yd dumpster
4
$945.72
3.20%
$975.98
8 yd dumpster
5
$1,168.72
3.20%
$1,206.12
8 yd dumpster
6
$1,387.62
3.20%
$1,432.02
8 yd dumpster
7
$1,767.16
3.20%
$1,823.71
The rates shown above include the monthly container rental fee and a semi - annual dumpster cleaning.
The rates are the same for bins and garwoods, when volume is identical. Bins and garwoods are types of
containers used for recycling.
COMMERCIAL GARBAGE CANS - ALL AREAS:
1 Can*
1
$18.58
3.20%
$19.17
2 Cans *
1
$39.23
3.20%
$40.49
3 Cans *
1
$45.44
3.20%
$46.89
4 Cans *
1
$57.80
3.20%
$59.65
Garbage extras (per bag)
1 $4.381
3.20%
$4.52
Garbage extras (per yard)
1 $9.231
3.20%
$9.53
Commercial Waste Wheeler rent
$3.381
3.20%
$3.49
Compactors (per yard) $12.431 3.20%1 $12.83
* Maximum volume and weight per garbage can : 33 gallons / 80 pounds
MISCELLANEOUS CHARGES - ALL
CUSTOMERS:
Overstacked Garbage & extra
bags Minimum /unit
each
$4.38
3.20%
$4.52
Overstacked Greenwaste & extra
bags Minimum /unit
each
$2.19
3.20%
$2.26
Overstacked Blue Bin & extra
bags Minimum /unit
each
$2.19
3.20%
$2.26
Item 9.b. - Page 7
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 1, 2013
CITY OF ARROYO GRANDE
Service Description
Pickups
Per Week
Current Monthly
Rate Effective
11 -1 -2011
Proposed Rate
Adjustment %
Proposed Monthly
Rate Effective
06/01/2013
commodity) IN ADDITION TO
STANDARD GARBAGE RATES
per month
$10.94
3.20%
$11.29
Monthly charge for additional 96-
gallon green waste service
per month
$3.03
3.20%
$3.13
Extended Vacation Service
per month
$10.19
3.20%
$10.52
Waste wheeler cleaning
each time
16.311
3.20%
$16.83
Trip charge
each time
$10.94
3.20%
$11.29
Non - payment downsize service
each time
$10.94
3.20%
$11.29
wheeler
each time
$10.94
3.20%
$11.29
Non - payment reconnect service
each time
$26.29
3.20%
$27.13
Small item pickup (TV, toilet)
each
$25.66
3.20%
$26.48
Appliance pickup - residential
each
$36.17
3.20%
$37.33
Larger than residential appliance
or glass, glass doors, or plate
glass
$0.00
Item 9.b. - Page 8
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 1, 2013
CITY OF ARROYO GRANDE
Service Description
Pickups
Per Week
Current Monthly
Rate Effective
11 -1 -2011
Proposed Rate
Adjustment %
Proposed Monthly
Rate Effective
06/01/2013
$0.00
Garbage extras on your scheduled
pickup day
per yard
$9.23
3.20%
$9.53
Garbage extras -NOT ON YOUR
SCHEDULED PICKUP DAY
per yard
$25.48
3.20%
$26.30
Commercial Waste Wheeler rent
per month
$3.38
3.20%
$3.49
Re- deliver bin on stopped acct each time $31.38
3.20%
$32.38
Large Compactors (> 4 yards)
per yard
$12.48
13.38%
$14.15
Small Compactors (4 yards &
below) assume 3 to 1 compaction 3 times garbage rate
Sunday Service (in additional to
arba a service level )
per month
$54.76
3.20%
$56.51
Recycle bin rental
per month
$6.09
3.20%
$6.28
Stand by time
per hour
$52.58
3.20%
$54.26
Extra bin cleaning
$48.93
3.20%
$50.50
Damage /Destruction of bins or
waste wheelers
Short Term Dumpsters:
Delivery & Pickup -Bin
$31.38
3.20%
$32.38
Delivery & Pickup -Waste Wheeler
$10.94
3.20%
$11.29
Rental
Per Day
$2.32
3.20%
$2.39
Empties
Per Yard
$25.47
3.20%
$26.29
Mattress:
Twin
Each
$11.84
3.20%
$12.22
Double
Each
$21.96
3.20%
$22.66
Queen
Each
$30.40
3.20%
$31.37
King
Each
$35.49
3.20%
$36.63
Late Fee 8
Per Month
$5.00
$5.00
ADDITIONAL INFORMATION ALL CUSTOMERS:
Late Fees are imposed for residential customers over 30 days delinquent and commercial customers over 30 days
delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is
required, as this late fee policy is stated at the bottom of every bill.
Please recycle, its cheaper and it helps the Community achieve its AB939 goal to reduce waste.
Any additional recycling services are charged out at 50% of the garbage rate.
Item 9.b. - Page 9
Attachment 1
South County Sanitary Service
.. • 1pipiii - 11 Kallegn!''iIiiiii •
141112:111471MA NRMWE Mille-MA 13!
City of Arroyo Grande
Steve Adams
PO Box 93421
Arroyo Grande, CA 93421
September 26, 2012
Enclosed please find a 2013 Base Year Rate Adjustment Application, asking for
a 3.2% increase. The rate - making model shows the actual calculation coming in at
5.4 %. Due to the language in our contract limiting increases to the cumulative total of
Bureau of Labor colas the maximum allowable increase is 3.2 %.
Over the four year period from 2010 to the projected 2013 our revenues have
gone up approximately $733,000. The 2011 increase of 5.15% accounts for $521,000
and growth of $212,000. Expenses have increased by $829,000, led by landfill
($318,000), Fuel ($212,000), franchise fees ($199,000), and all other operating costs
($200,000).
There were no increases in 2009, 2010 and 2012. There was a 5.15% increase
in late 2011. Due to the time lag from request to effective date, I would ask that you
name a consult to perform the review as soon as possible. I can make myself available
to the consultant or council members to answer any questions.
Thank you
Tom Martin
General Manager
Item 9.b. - Page 10
i
r
South County Sanitary Service
i Base a Adjustment p p
Summary
1. Rate Increase Requested
Rate Schedule
Single Family Residential
2. Economy Service (1 - can curb)
4. Standard Service (2- can curb)
5. Premium Service (3 - can curb)
• V ZLOYCOUCIRAU94
Requested Increase
3.2%
Rate Schedule'
Current Increased Adjustment New
Rate Rate (a) Rate
$ 15.47
$15.97
$15.97
$ 20.11
$20.75
$20.75
$ 24.76
$25.55
$25.55
(a) Calculated rates are rounded up to the nearest $0.01.
6. Multiunit Residential and Non - residential
Certification
Rate increases of 3.2%
will be applied to all rates in each structure
with each rate rounded to the nearest $0.01
To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions
provided by the Rate Setting Manual.
Name: Tom Martin Title: Division Vice - President
Signature: Date: 09/25/12
Fiscal Year. 1 -1 -2013 to 12 -31 -2013 Pg. 1 of 6
Cost Per
Gallon
$0.50
$0.32
$0.27
Item 9.b. - Page 11
South County Sanitary Service
BASE YEAR 2013 RATE ADJUSTMENT A LICATIN
Financial Information
6. Direct Labor
7. Corporate Overhead
8. Office Salaries
9. Other General and Admin Costs
10 Total Allowable Costs
11, Operating Ratio
12. Allowable Operating Profit
13. Tipping Fees
14. Franchise Fees
15. AB939 Fees
16. Lease Pmts to Affiliated Companie
17. Total Pass Through Costs
Historical
Current
Projected
$2,893,508
$2,922,444
$299,373
Base Year
1
2010
2011
2012
2013
2014
(from Pg. 4)
Section I- Allowable Costs
$2,726,360
$2,796,767
$2,836,773
$2,893,508
$2,922,444
$299,373
$302,666
$312,351
$317;661
$320,838
$574,483
$642,361
$563,031
$574,292
$580,035
$3,680,287
$3,814,924
$3,793,176
$3,806,849
$3,886,792
$7,280,503il
$7,556,718JI
$7,505,331 il
$7,592,310
1 $7,710,108jj
Section II- Allowable Operating Proftt
97.0%
101.8%
96.8%
92.0% 93.0%
$229,036
($131,603)
$249,699
$660,200 $580,331
Section III -Pass Through Costs
$1,526,234
$1,718,522
$1,844,193
$1,844,193
$1,862,635
$1,072,163
$1,097,433
$1,191,972
$1,271,258
$1,296,683
$0
$0
$0
2.010%
$0
$0
$0
$0
$0
_... -....- $0
$2,598,397
1 $2,815,955
$3,036,165
$3,115,451
$3,159,3!8jl
§ection:L' • :'Bev' `n' ``
ai'rement:'•:�:�: ::`•`: � : :�:::`•:��: E�`�i�i�i��` '� E
18. Revenue Requirement $10,107,936 $10,241,070 $10,791,195 $11,367,961 $11,449,757
19. Total Revenue Offsets $10,107,936 $10,241,070 $10,791,19511 $10,841,060 $11,013,200
(from Page 3)
Section' V - Net Shortfall (Surplus)
20. Net Shortfall (Surplus)
21. Total Residential and Non - residential Revenue without increase
in Base Year (pg.5, line 76)
22. Percent Change in Residential and Non - residential Revenue Requirement
23. Franchise Fee Adjustment Factor (I - 6 percent)
Limitation due to cumlative increases
24. Percent Change in Existing Rates
$526,901
$10,709,403
$10,709,403
$10,709,403
4.9%
4.9%
4.9%
90.000%
94.000%
92.700%
5.40%
5.21%
5.29%
- 2.200"
2.010%
- 2.090%
3.20'%
3.20%
3.20%
Fiscal Year. 1 -1 -2013 to 12 -31 -2013 Pg'1 °A;u - page 12
South County Sanitary Service
Base Year 'Kate 'Adjustment Application
Revenue Offset Summary
Sectlou vii - t2eve►ue Offsets .
Residential Revenue (without increase in Base Yr.)
28. Single Family Residential
Multiunit Residential Dumpster
29. Number of Accounts
30. Revenues
31. Less Allowance for Uncollectible Resid Accot
32. Total Residential Revenue
$5,888,672 $6,005,760 1 $6,332,725 6,351,090 $6,478,112
intss L $0]j
$5,888,672 $6,005,760 $6,332,725 1 $6,351,090]1 $6,478,112
Non - residential Revenue (without increase in Base Yr.)
Account Type
Non - residential Can
33. Number of Accounts
34. Revenues
Non - residential Wastewheeler
35. Number of Accounts
36. Revenues
10 1 10
1 77F011
10-]
Historical
Current
Projected
$15,005:]l
$15,155
Base Year
2010
2011
2012
2013
2014
Residential Revenue (without increase in Base Yr.)
28. Single Family Residential
Multiunit Residential Dumpster
29. Number of Accounts
30. Revenues
31. Less Allowance for Uncollectible Resid Accot
32. Total Residential Revenue
$5,888,672 $6,005,760 1 $6,332,725 6,351,090 $6,478,112
intss L $0]j
$5,888,672 $6,005,760 $6,332,725 1 $6,351,090]1 $6,478,112
Non - residential Revenue (without increase in Base Yr.)
Account Type
Non - residential Can
33. Number of Accounts
34. Revenues
Non - residential Wastewheeler
35. Number of Accounts
36. Revenues
10 1 10
1 77F011
10-]
10
$5,419:]l $5,448
1 $14,899 11
$15,005:]l
$15,155
2181 2201
1 221221
$366,794 $368,804
$151,014
$152,086 11
$153,607
Non - residential Dumpster
37. Number of Accounts 1 1925 ]1 1912 1 711907 1907
38. Revenues $3,800,790 $3,816,704 $4,270,699 $4,301,021 $4,344,031
39. Less: Allowance for Uncollectible Non -resid $0 l0 _$011 $0 1 $ ]
40. Total Non - residential Revenue 11 $4,173,00 $4,190,956 $4,436,612 1 $4,468,112 $4,512,79
45. Interest on Investments $46,262]1 $21,81fll $21,858 $21,858 $22,295
46. Other Income �_:] $22,544 $ $0 �_ $0
47. Total Revenue Offsets $10,107,93 $10,241,070 $10,791,195 11 $10,841,060 $11,013,200
Fiscal Year: 1 -1 -2013 to 12 -31 -2013 Pg. 3 of 6
Item 9.b. - Page 13
South County Sanitary Service
Base Year Rate Adjustment li ti
Cost Summary for Base Year
Section VIII -Base Year Cast Allocation
Description of Cost BASE YEAR
2010 2 2012 2013
Labor
Payroll Taxes
$2,527,980
$2,591,830
$2,627,462
$2,680,011
11
$198,380
$204,937
$209,311
$213,497
48. Total Direct Labor
$2,726,360
$2,796,767
$2,836,773
1 $2,893,508
49. Corporate Overhead
Less limitation (enter as negative)
$516,009 $483,655
$479,800
$489,396
($216,636) ($180,989)
($167,449)
($171,735)
Total Corporate Overhead
Office Salary
Payroll Taxes
$299,373 $302,666
$312,351
$317,661
$540,665
$593,655
$523,690
$534,164
$33,818
$48,706
$39,341
$40,128
50. Total Office Salaries
Allocated expenses
Bad Debt
Bond expense
Computer services
Depreciation on Bldg and Equip
Depreciation on Trucks /Containers
Drive Cam fees
Dues and Subscriptions
Gas and oil
Interest Expense
Laundry
Legal and Accounting
Miscellaneous and Other
Office Expense
Operating Supplies
Other insurance
Other Insurance - medical
Other Taxes
Outside Services
Postage
Public Relations and Promotion
Permits
Rent
Telephone
Tires (included in repairs)
Travel
Truck Repairs
Utilities
51. Total Other Gen /Admin Costs 11
$574,483
$642,361
$563,031
$574,292
$0
$0
$0
$0
$6,723
$1,971
$31,034
$31,655
$10,845
$9,082
$8,417
$8,585
$1,141,895
$1,022,230
$907,609
$876,307
$27,749
$28,404
$33,363
$34,030
$4,476
$3,944
$3,670
$3,743
$704,088
$839,934
$916,427
$916,427
$24,913
$30,001
$21,408
$21,836
$12,876
$20,751
$16,575
$16,907
$3,517
$4,924
$6,184
$6,308
$151,980
$148,023
$155,677
$158,791
$22,209
$24,674
$25,969
$26,488
$ 482,977
$ 482,256
$489,358
$499,145
$ 487,373
$ 532,191
$ 559,173
$ 575,948
$29,512
$23,909
$19,618
$20,010
$42,948
$101,096
$45,697
$46,611
$8,379
$15,192
$13,235
$13,500
$3,941
$3,871
$2,829
$2,886
$79,688
$75,431
$75,056
$76,557
$54,768
$55,343
$56,050
$57,171
$25,473
$24,668
$23,166
$23,629
$94,533
$123,657
$112,571
$114,822
$5,384
$8,129
$0
$0
$241,139
$221,426
$256,142
$261,265
$12,901
$13,817
$13,948
$14,227
$3,680,287
F_ $3,814,924
$3,793,176
$3,806,849
52.
Total Tipping Fees
53.
Total Franchise Fee
54.
Total AB 939 /Regulatory Fees
55.
Total Lease Pmt to Affil Co.'s
56,
Total Cost
Fiscal Year: 1 -1 -2013 to 12 -31 -2013 i'g- 4 ?e o,�, _ Page 14
South County Sanitary Service
Base Year Rate Adjustment Application
Base Year Revenue Offset Summary
Description of Revenue
Residential Revenue
(without increase in Base Yeai)
57. Single Family Residential
Multiunit Residential Dempster
58. Number of Accounts
59. Revenues
Section VII- Revenue Offsets
Foe Information Purposes Only
Overall
Total I
Franchise
Total
Refuse Collection Non - franchise
Arroyo I Pismo I Grover I Unincorporated Total
_$6,351,090', $67351,090 $1,289,298 I $864,086 $872,876 IF $3,324,830
MENM
- - --
1 = - - - - -■
60. Less Allowance for Uncollectable s i $0
61. Total Residential Revenue $6,351,090' $6,351,090 $1,289,298 $864,086 $872,876 $3,324,830 $0
Non - residential Revenue (without increase in Base Yeas)
Account Type
Non- resiaenuai k-an
62. Number of Accounts
63. Revenues
Non - residential Wastewheeler
64. Number of Accounts
65. Revenues
Non - residential Dempster
66. Number of Accounts
67. Revenues
48
48
26
121
101
876
1
$15,005
$15,005
$7,741
$4,959
$2,305
1 $1,579,704
1 $131,657
157
157
1 58
551
44
876
3
$152,086' 11
$152,086 11
$40,088
$89,503
1 $22,495
1 $1,579,704
1 $131,657
19,531
1950
397
294
383
876
3
$4,361;021
$4,169,364
$1,014,670
1 $882,940
1 $692,050
1 $1,579,704
1 $131,657
68. Less: Allowance for Uneollectibie
Non - residential Accounts
69. Total Non - residential Revenue 11 `$4,468,111-11 $1,062,499 $977,402 $716,850 $1,579,704 $131,657
74. Interest on Investments $21,85$' $21,858 $0
75. Other Income o 1 $0
76. Total Revenue Offsets
$10,841;060
$10,709,403'
$2'',351,797
$1,841,488.
$1,589,726 $4,904,534
$131,657
Fiscal Year: 1 -1 -2013 to
12 -31 -2013
P_p. 5 of 6
Item 9.b. - Page 15
South, County Sanitary Service
Base Year Rate Adjustment Application
Operating Information
Historical
Current
Projected
-0.3%
5,585
0.5%
Percent Percent
Percent
Base Year Percent
2010 Change 2011 Change
2012 Change
2013 Change 2014
+Seetlon IX-Operating Data
Residential
Accounts
77. Arroyo Grande
Grover Beach
Pismo Beach
Oceano CSD
Nipomo CSD
County
78. Routes - Garbage
79. Routes - Recycling
80. Direct Labor Hours
5,594
0.1%
5,600
-0.3%
5,585
0.5%
5,615
0.0%
5,615
4,025
0.9%
4,062
-0.1%
4,058
1.2%
4,108
0.0%
4,108
3,581
0.8%
3,609
-1.0%
3,574
0.5%
3,592
0.0%
3,592
1,623
0.6%
1,633
1.7%
1,660
1.2%
1,680
0.0%
1,680
3,682
1 0.8%
3,710
2.0%
3,786
0.1%
3,789
0.0%
3,789
5,345
2.7%
5,488
5.8%
5,804
-2.1%
5,683
0.0%
5,683
23,850
1.1%
24,102
1.5%
24,467
0.0%
24,467
0.0%
24,467
10
-20.0%
8
0.0%
8
0.0%
8
0.0%
8
6
0.0%
6
0.0%
6
0.0%
6
0.0%
6
331280
-12.5%
29,120
0.0%9,120
14,560
0.0%
29,120
0.0%
29,120
Non - residential Garbage
Accounts
80. Arroyo Grande
Grover Beach
Pismo Beach
Oceano CSD
Nipomo CSD
County
81. Routes - garbage
Routes - recycling
82. Direct Labor Hours
496
-1.2%
490
-3.1%
475
1.3%
481
0.0%
481
463
-1.9%
454
-4.4%
434
0.7%
437
0.0%
437
361
1.7%
367
-1.1%
363
-0.6%
361
0.0%
361
205
1.0%
207
-1.9%
203
1.5%
206
0.0%
206
197
13.2%
223
-2.7%
217
-0.9%
215
0.0%
215
480
-3.3%
464
-2.6%
452
0.7%
455
0.0%
455
•2,202
0.1%
2,205
-2.8%
2,144
0.5%
2,155
0.0%
2,155
6
0.0%
6
-16.7%
5
0.0%
5
0.0%
5
2
0.0%
2
0.0%
2
0.0%
2
0.0%
2
16,640
0.0%11
16,640
-12.5%11
14,560
t77 0.0%
14,560 1
0.0%11
14,560
Recyclable Materials - All areas- Commingled Recycling (in tons)
Accounts
83, Tri- Cities
Nipomo /Oceano CSD
84. County
7,829
0.2%
7,841
1 0.7%
7,894
0.0%
7,894
0.0%
7,894
2,878
0.2%
2,883
1 0.7%
2,902
0.0%
2,902
0.0%
2,902
921
0.2%
922
1 0.7%
929
0.0%
929
0.0%
929
1 11,628 1 0.2 %1 11,646 1 0.7 %1 11,725 1 0.0 %1 11,725 1 0.0 %1 11,725
Recyclable Materials - All areas -Green waste Recycline
Routes
Tons Collected
Direct Labor Homy
4
0.0%
28.7%
4
0.0%
2.0%
4
0.0%
7.9%
4
0.0%
0.0%
4
8,400
10,809
11,026
11,894
11,894
10,400
0.0%
10,400
0.0%1
10,400
20.0%
12,480
0.0%
12,480
Garbage Tons Collected r42,880 -8,9%1 39,063 1 3.5% 40,417 1 0.0%1 40,417 1 0.0%1 40,417
Fiscal Year. 1 -1 -2013 to 12 -31 -2013 P_q. 6 of 6
Item 9.b. - Page 16
• 1 San'tary
Service
SOLID WASTE RATE REVIEW
1
tt, ffi�l-
Attachment 2
Item 9.b. - Page 17
Solid Waste Rate Review
December 1
Report Purpose
Overview of Findings
Rate Recommendations
Rate Summary for Residential Customers
Background
Rate Review Workscope
Revenue and Rate - Setting Objectives
Cost Accounting Issues
Financial and Operational Overview
Costs by Type
Revenues by Source
Service Accounts by Type
Rate - Setting Process and Recent Rate History
Rate - Setting Methodology
Are the Costs Reasonable?
Detailed Cost Review
Trends in External Cost Drivers
Rates in Comparable Communities
What Is a Reasonable Return on These Costs?
Cost Categories
Preparing the Rate Request Application
Implementation
Optional Cost of Living Limit
Coordination with Other Agencies
Summary
'D ► 1,
Base Year Rate Request Application from South County Sanitary Service
1
1
2
2
2
3
4
4
7
7
7
7
8
9
9
9
10
10 -.
11
11
12
12
13
13
13
Item 9.b. - Page 18
, - • n • •'. •. X,
i1- 1,f �:• � it i
December 18, 2012
South County Sanitary Service
SOLID -f E RATE REVIEW
For the Communities of Arroyo Grande, Grover Beach,
Oceano and Pismo Beach
The purpose of this report is to review the rate increases requested by South County
Sanitary Service (SCSS) for the Cities of Arroyo Grande, Grover Beach and Pismo Beach
and the Oceano Community Services District, and to make rate recommendations to these
four agencies as appropriate.
SCSS provides similar services to each of these agencies under formally approved
franchise agreements that regulate rates and establish procedures for considering rate
increases. Because the financial information for SCSS is closely related for these four
agencies, this report jointly reviews rate requests and provides recommendations for each
of them.
OVERVIEW OF FINDINGS
® SCSS has fully provided the supporting documentation required for rate requests
under the franchise agreements in Arroyo Grande, Oceano, Pismo Beach and Grover
Beach. SCSS's complete rate adjustment application is provided in the Appendix.
® SCSS provides a broad level of high - quality service to these four agencies— including
garbage, recycling and green waste collection and disposal as well as hauler - provided
"waste wheeler" containers for all three services —at very competitive rates compared
with many other communities. In fact, even with the proposed rate increase, rates in
these four agencies will be among the lowest of those surveyed.
® SCSS has done a good job of managing costs and revenues, especially in light of cost
pressures in key areas such labor, insurance, fuel and fleet replacement costs.
-1-
Item 9.b. - Page 19
Rate Recommendation
It is recommended that the governing bodies of each agency adopt SCSS's requested Base Year
rates for 2013, which reflect a 3.2% across - the -board rate increase for all four agencies. As
discussed in greater detail below, this is less than the rate increase of 5.4% that would otherwise
be allowed under the adopted rate - setting methodology due to an optional process set forth in the
franchise agreements.
Optional Cost of Living Limit. Along with establishing the rate review methodology, Section
8.3 of the franchise agreements provides that if the rate increase request compared with the rate
in effect at the date of the agreement exceeds the cumulative cost of living increase from that
same date, each agency has the option of terminating the agreement at any time within nine
months following approval of the requested rate increase (assuming it was submitted in
accordance with the rate - setting methodology).
It is important to note that this provision does not directly limit rate increase requests by SCSS to
an amount that may be less than that allowed under the rate - setting methodology. However,
subjecting the franchise agreement to possible termination if the rate request is greater than the
cost of living threshold provides a strong incentive for SCSS to do so.
As detailed below, the cost of living increase threshold for SCSS to avoid triggering the potential
for termination is 3.25 %. Its requested increase of 3.2% is slightly below this amount.
Rate Summary for Residential Customers
Table 1 summarizes the current and proposed rates for single - family residential (SFR)
customers. As reflected in this summary, the increases will be very modest. For example, for
collection of a 32- gallon garbage container
(the most common SFR service level) as
well as separate waste wheelers for recycling
and green waste, the proposed monthly rate
will increase by 45 cents on average for the
four agencies.
LC , • ,� l
In September 2012, SCSS submitted a "base
year" rate request for 2013. Its rate request
was prepared in accordance with the rate
review process and methodology formally
set forth in its franchise agreements with
Arroyo Grande, Grover Beach, Oceano and
Pismo Beach.
In establishing a rate- setting process and
Table 1. Single Family Residential Rates
methodology, each of these franchise
agreements specifically references the City of San Luis Obispo's Rate Setting Process and
-2-
Item 9.b. - Page 20
Container Size (Gallons)
32
64
96
r e ¢ e
Arroyo Grande
$15.97
$20.75
$25.55
Grover Beach
14.47
19.57
24.64
Oceano
12.94
18.62
36.43
Pismo Beach
14.21
28.42
42.63
24.76
Arroyo Grande
15.47
20.11
Grover Beach
14.02
18.96
23.88
Oceano
12.54
18.04
35.30
Pismo Beach
13.77
27.54
41.31
Arroyo Grande
0.50
0.64
0.79
Grover Beach
0.45
0.61
0.76
Oceano
0.40
0.58
1.13
Pismo Beach
0.44
0.88
1.32
methodology, each of these franchise
agreements specifically references the City of San Luis Obispo's Rate Setting Process and
-2-
Item 9.b. - Page 20
Methodology Manual for Integrated Solid Waste Management Rates. This comprehensive
approach to rate reviews was adopted by San Luis Obispo in 1994, and establishes detailed
procedures for requesting rate increases and the required supporting documentation to do so. It
also sets cost accounting standards and allowable operating profit ratios.
As noted above, the financial information for Arroyo Grande, Grover Beach, Oceano and Pismo
Beach is closely related. For this reason, these four agencies jointly contracted with William C.
Statler (who has extensive experience in evaluating rate requests in accordance with the adopted
methodology) in November 2012 to evaluate SCSS's rate increase application.
This is the fourth Base Year analysis performed under this rate - setting methodology. The first
was prepared in September 2001; second in August 2004; and the third in 2007. As discussed
below, several Interim Year rate reviews have prepared since then, most recently in 2011.
Franchise Agreement Summary
Historically, each agency has had its own approach to determining service levels and adopted
differing franchise agreements accordingly.
While these became similar beginning in 1999, in
2008 the Cities of Arroyo Grande, Grover
Beach and Pismo Beach adopted renewed
Table 2. Franchise Agreement Effective Dates
franchise agreements, followed by the
Arroyo Grande
June 10, 2008
Oceano Community Service District in
Grover Beach
July 7, 2008
Summer 2010, which are the same in all key
Oceano
July 14, 2010
provisions:
Pismo Beach
June 3, 2008
® Each agency contracts with SCSS for
garbage, green waste and recycling; and SCSS provides the container (waste wheelers) for
each service.
® Each agreement is for 15 years.
® As noted above, each agency has adopted the same rate - setting methodology, including the
option of terminating the agreement within nine months following approval of the requested
rate increase if it exceeds the cost of living threshold.
® All agencies have adopted franchise fees of 10 %.
This report addresses four basic questions:
• Should SCSS be granted a rate increase? And if so, how much?
• How much does it cost to provide required service levels?
• Are these costs reasonable?
• And if so, what is a reasonable level of return on these costs?
-3-
Item 9.b. - Page 21
The following documents were closely reviewed in answering these questions:
• Franchise agreements and amendments for each agency
• Audited financial statements for SCSS
• City of San Luis Obispo's Rate Setting Process and Methodology Manual for Integrated
Solid Waste Management Rates (Rate Manual)
• SCSS rate increase application and supporting documentation
• Follow -up interviews, correspondence and briefings with agency and SCSS staff
• Rate surveys of Central Coast communities
0 s, ! IM111 J urel l "
In considering SCSS's rate increase request, it is important to note the revenue and rate setting
objectives for solid waste services as set forth in the franchise agreements via the Rate Manual.
Revenues. These should be set at levels that:
• Are fair to customers and the hauler.
• Are justifiable and supportable.
• Ensure revenue adequacy.
• Provide for ongoing review and rate stability.
• Are clear and straightforward for the agency and hauler to administer.
Rate Structure. Almost any rate structure can meet the revenue principles outlined above, and
generate the same amount of total revenue. Moreover, almost all rate structures will result in
similar costs for the average customer: what different rate structures tell us is how costs will be
distributed among non - average customers. The following summarizes adopted rate structure
principles for solid waste services:
• Promote source reduction, maximum diversion and recycling.
• Provide equity and fairness within classes of customers (similar customers should be treated
similarly).
• Be environmentally sound.
• Be easy for customers to understand.
COST ACCOUNTING ISSUES
Or: Who's Paying What?
As noted above, SCSS's financial operations for Arroyo Grande, Grover Beach, Oceano and
Pismo Beach are closely related. Keeping costs and revenues segregated is further complicated
by the fact that SCSS, as a subsidiary of Waste Connections Incorporated (which acquired the
parent company in April 2002), shares ownership with the following local companies:
San Luis Garbage Company
Mission Country Disposal
Morro Bay Garbage Service
-4-
Item 9.b. - Page 22
• Coastal Roll -Off Service
• Cold Canyon Land Fill
Additionally, within the South County, SCSS's service area includes:
• City of Arroyo Grande
• City of Grover Beach
• City of Pismo Beach
• Oceano Community Services District
• Nipomo Community Services District
• Avila Beach Community Services District
• Other unincorporated areas in the South County such as Rural Arroyo Grande
Cost Accounting System
Between Companies. Separate "source" accounting systems are maintained for each company.
Moreover, audited financial statements are prepared for each company by an independent
certified public accountant; and SCSS's auditors have consistently issued "clean opinions" on its
financial operations. In short, good systems are in place to ensure that the financial results
reported for SCSS do not include costs and revenues related to other companies. Additionally,
virtually all of the financial operations of SCSS and its affiliated companies are regulated by
elected governing bodies such as cities, special districts and the County.
Within the SCSS Service Area. Within the SCSS service area, a combination of direct and
allocation methodologies are used in accounting for costs and revenues between communities.
In general, revenues are directly accounted for each franchising agency, while costs are allocated
using generally accepted accounting principles.
Cost Accounting Findings. The accounting and financial reporting system used by SCSS is
reasonable and consistent with generally accepted accounting principles and practices. It treats
similar costs similarly (such as collection and disposal, where there are no significant differences
in service levels and unit costs between the four agencies), while recognizing community
differences (such as different franchise fee rates). Because the financial operations of SCSS are
closely related for all of the communities it serves, there are significant advantages to performing
concurrent reviews.
Area of Possible Concern. While the service characteristics and resulting per unit costs are the
same for Arroyo Grande, Grover Beach, Oceano and Pismo Beach, this is unlikely to be true for
the other areas in South County serviced by SCSS. Because of their lower densities, collection
costs are probably higher in these areas, but these are not accounted for separately by SCSS.
On the other hand, there are three mitigating factors that reduce this concern:
• Higher rates. Depending on service type, rates are up to 30% higher in these areas,
recognizing the higher collection costs for similar services. In short, these rate differentials
significantly mitigate "equity" and cost accounting concerns.
- 5 -
Item 9.b. - Page 23
�..
Solid Wasfe Rate Review
Smaller percentage of accounts. The four agencies covered by this report account for about
two - thirds of the accounts serviced by SCSS. Accordingly, while there may be "cost per
account" differences in these other areas, they account for a smaller portion of SCSS
operations.
® About 40% of revenues from non - residential accounts. 41% of SCSS revenues come
from non - residential accounts, which have the same rate structure and similar service- versus-
cost characteristics throughout the SCSS service area.
If costs for Arroyo Grande, Grover Beach, Oceano and Pismo Beach are so similar, why are
the residential rates so different?
The short answer is: history and different approaches to rate structure philosophies.
History
Until 1999, service levels under the franchise agreements with SCSS between these four
agencies were significantly different. The rates in place at that time became the basis for
subsequent rate reviews.
Rate Structure Principles
Most significantly, each agency has adopted different rate structure principles to recover similar
costs. For example, Pismo Beach has adopted a rate structure for its residential customers that
more closely reflects a "pay -as -you- throw" philosophy under which the "per gallon" costs for 32,
64 and 96 gallon containers are the same (for example, a 64- gallon container costs twice as much
as a 32- gallon one.) This results in lower monthly costs for 32- gallon customers and relatively
higher rates for 64 and 96- gallon customers.
On the other hand, Arroyo Grande has adopted rates that do not have as much difference
between container sizes (but still offer an incentive for smaller containers over larger ones),
recognizing collection economies of scale for larger versus smaller containers. In this case, 32-
gallon containers in Arroyo Grande are more expensive than in Pismo Beach, but 64- gallon
containers are less.
Both rate structures have their strong points: in the case of Pismo Beach, rates are more
reflective of disposal costs, whereas in Arroyo Grande they are more reflective of collection
costs. But the important point is that the revenue generating capability is the same even though
the rates are different.
Non- Residential Rates
Lastly, non - residential rates (which account for 41% of SCSS revenues) are similar in all four
agencies: it is only in residential rates that there are significant differences between
communities.
-6-
Item 9.b. - Page 24
While detailed financial and service information is provided in the SCSS rate request application
(Appendix), the following summaries their actual costs, revenues and account information for
2011 (the last fiscal year for which there are audited financial statements at this time) for all
areas serviced by them.
Costs by Type. Total expenses for
2011 (after deducting for non -
allowable and limited costs as
discussed later in this report) were
$10.4 million. As reflected in Table
3, just four cost areas accounted for
slightly over 75% of total costs:
® Direct labor and contract
collection services: 28%
® Vehicle operations and
maintenance (including insurance
and depreciation): 22%
® Tipping fees (landfill, recycling
and composting costs): 16%
® Franchise fees: 11%
Revenues by Source. Total revenues
in 2011 were $10.2 million —about
$171,000 less than expenses. As
reflected in Table 4, 58% of SCSS's
revenues come from single - family
residential accounts. Services to
multi- family residential and non-
residential customers account for
41 % of their revenues, with a very
small part (1 %) from other revenues
such as interest earnings.
Service Accounts by Type. While
single- family residences account for
58% of revenues, they represent 92%
of total accounts (Table 5). This
reflects the fact that per account,
multi - family and non - residential
customers generate more solid waste
than single- family residential
customers (and thus more revenue per
account).
Table 3. Costs By Type: $10.4 Mullion
❑ Other Costs
13%
&
® Direct Labor &
ead
Overhead
Outside
10%
Services
28%
❑ Franchise
Fees
11%
® Vehicle
Operations &
(3 Tipping Fees
Maint
16%
22%
-7
Item 9.b. - Page 25
Solid Waste 12ate Review
Under the Rate Manual, the rate - setting process follows a three -year cycle:
® Base Year. The first year of the cycle —the Base Year— requires a comprehensive, detailed
analysis of revenues, expenses and operating data. This information is evaluated in the
context of agreed upon factors in the franchise agreements in determining fair and reasonable
rates. As noted above, the last Base Year analysis for SCSS under this approach was
prepared in August 2007.
® Interim Years. In both the second and third years, SCSS is eligible for Interim Year rate
adjustments that address two key change factors: changes in the consumer price index for
"controllable" operating costs; and changes in "pass- though costs" (primarily tipping fees),
which SCSS does not control (they are set by the County Board of Supervisors).
These adjustment factors are "weighted" by the proportionate share that these costs represent
of total costs. For example, in the current Base Year analysis for 2013, controllable costs
account for 71 % of total costs, with pass through costs (tipping and franchise fees)
accounting for 29 %. The rate review for the two Interim Years requires less information and
preparation time than the Base Year review, while still providing fair and reasonable rate
adjustments.
As discussed in the 2011 Interim Year review, SCSS did not request a rate increase in 2010
(which would have been the "normal" cycle to do so), and accordingly, did not submit a Base
Year rate application. However, SCSS did submit a rate request in 2011, using an Interim Year
methodology. The reasonableness of using the resulting "hybrid" approach was discussed in
detail in the 2011 Interim Year report, which concluded that this approach was reasonable given
the circumstances. However, that report recommended that the next rate review use the Base
Year methodology. SCSS has followed this recommendation; and with the 2013 rate application,
SCSS is now back on the "normal" three year cycle. Accordingly, Interim Year rate requests can
be anticipated for 2014 and 2015.
Rate Increase History. The following summarizes the Interim Year rate increase requests
submitted by SCSS since the last Base Year review in 2007:
Table 6. Recent Rate Increase History
Agency
Base Year
Review 2007
Interim Year Reviews
2008
2009
2010
2011
Arroyo Grande
3.00%
0.00%
0.00%
0.00%
5.15%
Grover Beach
3.00%
0.00%
0.00%
0.00%
5.15%
Oceano
3.00%
0.00%
0.00%
0.00%
5.15%
Pismo Beach "
2.90%
0.00%
0.00%
0.00%
5.15%
In 2007, the franchise fee rate in Pismo Beach was 6% compared with 10% in the other three
agencies, and as such, its rate increase was slightly less. In July 2011, Pismo Beach adopted a 10%
franchise fee, bringing it in alignment with the other three agencies (as well as most other agencies in
San Luis Obispo County). In implementing the 10% rate, Pismo adopted an added 3.9% increase
beyond the interim year rate increase of 5.15% requested by SCSS.
-8-
Item 9.b. - Page 26
Solid Waste Rate Review
Placed in the context of the modest rate increases for the past five years, the proposed rate
increase of 3.2% reflects a high level of rate stability and price containment for SCSS customers.
Are the Costs Reasonable?
The first step in the rate review process is to determine if costs are reasonable. There are three
analytical techniques that can be used in assessing this:
® Detailed review of costs and service responsibilities over time.
® Evaluation of external cost factors, such as general increases in the cost of living (as
measured by the consumer price index).
® Comparisons of rates with other communities.
Each of these was considered in preparing this report, and the following summarizes the results.
Detailed Cost Review
In its rate application, SCSS provides detailed financial data for five years:
• Audited results for the two prior years (2010 and 2011).
• Estimated results for the current year (2012, which have not yet been audited).
• Projected costs for the Base Year (2013).
• Estimated costs for the following year (2014).
This allows for a detailed analysis of changes in key cost components such as labor, repairs, fuel,
insurance and tipping fees. In this case, its submittal shows that overall SCSS has done a good
job of containing costs. Excluding pass- through costs (like tipping fees and franchise fees,
which SCSS does not control), very modest cost increases in "controllable" cost are projected:
Table 7. Cost Trend Summary
Not surprisingly, fuel costs are the only significant cost increase, rising by 9.1 % in 2012 but
projected to level -off in 2013. The only other significant changes are related: as depreciation
expenses decrease due to an aging fleet (down by 11.2 % in 2012 and another 3.4% in 2013),
IMI
Item 9.b. - Page 27
Actual
Estimated
Projected
Percent Increase
2011
2012
2013
2012
2013
Direct Labor
2,796,767
2,836,773
2,893,508
1.4%
2.0%
Allowable Corporate Overhead
302,666
312,351
317,661
3.2%
1.7%
Office Salaries
642,361
563,031
574,292
- 12.3%
2.0%
Depreciation
1,022,230
907,609
876,307
- 11.2%
-3.4%
Truck Repairs & Tires
345,083
368,983
376,087
6.9%
1.9%
Fuel & Oil
839,934
916,427
916,427
9.1%
0.0%
Insurance
1,014,447
1,048,531
1,075,093
3.4%
2.5%
Other Costs
593,230
551,626
562,935
-7.0%
2.1%
Total Controllable Costs
$7,556,718
$7,505,331
$7,592,310
-0.7%
1.2%
Not surprisingly, fuel costs are the only significant cost increase, rising by 9.1 % in 2012 but
projected to level -off in 2013. The only other significant changes are related: as depreciation
expenses decrease due to an aging fleet (down by 11.2 % in 2012 and another 3.4% in 2013),
IMI
Item 9.b. - Page 27
truck repairs are estimated to increase by 6.9% in 2012, with a modest increase of 1.9%
projected in 2013.
Trends in External Cost Drivers
The most common external "benchmark" for evaluating cost trends is the consumer price index
(CPI). For the most recent year available (October 2011 to October 2012), the U.S. city average
for all urban consumers (U.S. CPI -U) increased by 2.2 %. The controllable cost decrease of 0.7%
in 2012 and projected increase of 1.2% in 2013 compare favorably with this CPI benchmark.
Rates in Comparable Communities
Lastly, reasonableness of rates (and underlying costs) can also be evaluated by comparing rates
with comparable communities. However, survey results between "comparable" communities
need to be carefully weighed, because every community is different. For example, even in the
South County where service levels and costs are very similar, there are rate differences. In short,
making a true "apples -to- apples" comparison is easier said than done.
Nonetheless, surveys are useful assessment tools —but they are not perfect and they should not
drive rate increases. Typical reasons why solid waste rates may be different include:
• Franchise fees and AB 939 fee surcharges
• Landfill costs (tipping fees)
• Service levels (frequency, quality)
• Labor market
• Operator efficiency and effectiveness
• Voluntary versus mandatory service
• Direct services provided to the franchising agency at no cost, such as free trash container
pick -up at city facilities, on streets and in parks
• Percentage of non - residential customers, and how costs and rates are allocated between
customer types
• Revenue collection procedures: Does the hauler or the city bill for service? And what are the
procedures for collecting delinquent accounts?
• Services included in the base fee (recycling, green waste, containers, pick -up away from
curb)
• Different rates structures
• Land use and density (lower densities will typically result in higher service costs)
• Mix of residential and non - residential accounts
With these caveats, the following summarizes single - family residential rates for other cities in
the Central Coast area compared with the proposed rates for SCSS. As reflected below, even
MDR
Item 9.b. - Page 28
with the proposed rate increases, Arroyo Grande, Grover Beach, Oceano and Pismo Beach will
have among the lowest rates among the agencies surveyed.
Table 8. Sinele- Family Residential Rate Survev: December 2012
Summary: Are the costs reasonable? Based on the results of the three separate cost - review
techniques -trend review, external factor review and rate comparisons- SCSS's costs are
reasonable.
What Is a Reasonable Return on these Costs?
After assessing if costs are reasonable, the next step is to determine a reasonable rate of return on
these costs. The rate- setting method formally adopted by Arroyo Grande, Grover Beach, Oceano
and Pismo Beach in their franchise agreements with SCSS includes clear criteria for making this
assessment. It begins by organizing costs into three main categories, which will be treated
differently in determining a reasonable "operating profit ratio:"
Controllable Costs (Operations and Maintenance)
• Direct collection labor ® Fuel
• Vehicle maintenance and repairs ® Depreciation
• Insurance ® Billing and collection
Pass - Through Costs
• Tipping fees
• Franchise and "AB 939" fees (recycling, source reduction, household hazardous waste
programs)
• Payments to affiliated companies (such as leases, trucking charges and AB 939 fees)
Excluded and Limited Costs
• Charitable and political contributions ® Non -IRS approved profit- sharing plans
• Entertainment ® Fines and penalties
• Income taxes ® Limits on officer compensation
-11-
Item 9.b. - Page 29
Container Size (Gallons)
30-40
60 -70
90 -101
Atascadero
$20.04
$35.16
$49.41
Morro Bay
14.33
28.66
42.99
Paso Robles
26.42
34.57
38.13
San Luis Obispo
12.61
25.22
37.81
Santa Maria
n/a
25.49
28.91
San Miguel
27.15
42.60
58.45
Templeton
23.80
34.80
38.80
® W ® W ® W
Arroyo Grande
15.97
20.75
25.55
Grover Beach
14.47
19.57
24.64
Oceano
12.94
18.62
36.43
Pismo Beach
14.21
28.42
42.63
Summary: Are the costs reasonable? Based on the results of the three separate cost - review
techniques -trend review, external factor review and rate comparisons- SCSS's costs are
reasonable.
What Is a Reasonable Return on these Costs?
After assessing if costs are reasonable, the next step is to determine a reasonable rate of return on
these costs. The rate- setting method formally adopted by Arroyo Grande, Grover Beach, Oceano
and Pismo Beach in their franchise agreements with SCSS includes clear criteria for making this
assessment. It begins by organizing costs into three main categories, which will be treated
differently in determining a reasonable "operating profit ratio:"
Controllable Costs (Operations and Maintenance)
• Direct collection labor ® Fuel
• Vehicle maintenance and repairs ® Depreciation
• Insurance ® Billing and collection
Pass - Through Costs
• Tipping fees
• Franchise and "AB 939" fees (recycling, source reduction, household hazardous waste
programs)
• Payments to affiliated companies (such as leases, trucking charges and AB 939 fees)
Excluded and Limited Costs
• Charitable and political contributions ® Non -IRS approved profit- sharing plans
• Entertainment ® Fines and penalties
• Income taxes ® Limits on officer compensation
-11-
Item 9.b. - Page 29
Solid Waste Rate Rey�ew
After organizing costs into these three categories, determining "operating profit ratios" and
overall revenue requirements is straightforward:
® The target is a 92% operating profit ratio on "controllable costs."
Pass - through costs may be fully recovered through rates, but no profit is allowed on these
costs.
® No revenues are allowed for any excluded or limited costs.
In the case of SCSS, 71% of their costs are "controllable costs" subject to the 92% operating
profit ratio (or 8% of total allowable "rate base" revenues); and 29% are pass- through costs that
may be fully recovered from rates but no profit is allowed. No recovery is allowed for excluded
costs.
Preparing the Rate Request Application
Detailed "spreadsheet" templates for preparing the rate request application — including
assembling the required information and making the needed calculations —are provided in the
Rate Manual. SCSS has prepared their rate increase application in accordance with these
requirements (Appendix); and while there are minor variances, the financial information
provided in the application for 2010 and 2011 closely ties to its audited financial statements.
(The differences are immaterial.)
Implementation
The following summarizes key implementation concepts in the adopted rate - setting model:
® The "92% operating profit ratio" is a target; in the interest of rate stability, adjustments are
only made if the calculated operating profit ratio falls outside of 90% to 94 %. In the case of
this Base Year application, it clearly does.
® There is no provision for retroactivity: requested rate increases are "prospective" for the year
to come; there is no provision for looking back. This means that any passed shortfalls from
the target operating profit, as there were in 2010, 2011 and 2012, cannot be recaptured.
® On the other hand, if past ratios have been stronger than this target, then the revenue base is
re -set in the Base Year review.
® As discussed above, detailed Base Year reviews are prepared every three years; Interim Year
reviews to account for focused changes in the consumer price and tipping fees are prepared
in the two "in- between" years.
® Special rate increases for extraordinary circumstances may be considered. This has never
occurred in any of the agencies that use this rate - setting methodology.
-12-
Item 9.b. - Page 30
Solid Waste Rate Review
The result of this process is an allowed rate increase of 5.4 %. However, as discussed below,
based on additional rate containment provisions in the franchise agreements, SCSS has requested
a rate increase of 3.2 %.
As noted above, Section 8.3 of the franchise agreements provides that if the rate increase request
compared with the rate in effect at the date of the agreement exceeds the cumulative cost of
living increase from that same date, each agency has the option of terminating the agreement at
any time within nine months following approval of the requested rate increase (assuming it was
submitted in accordance with the rate - setting methodology).
While this provision does not directly limit rate increase requests by SCSS to an amount that
may be less than that allowed under the rate - setting methodology, subjecting the franchise
agreement to possible termination if the rate request is greater than the cost of living threshold
provides a strong incentive for SCSS to do so.
As detailed below, the cost of living increase threshold for SCSS to avoid the potential for
triggering early termination is 3.25 %. Its requested increase of 3.2 % is slightly below this
amount.
Calculation of the CPI Threshold
Measured by changes in the U.S. CPI -U from August 2009 through August 2012 (the most
recent annual period available to SCSS at the time it submitted its rate application), the
cumulative increase setting the threshold is 6.74 %. As part of the 2011 rate review process,
SCSS received an rate increase that was subject to this limit of 3.45 %, (Note: Of the 5.15% rate
increase requested in 2011, increased green waste transportation costs accounted for 1.70% .
This portion is not subject to the CPI threshold.)
This leaves 3.25% available to SCSS without triggering an option for early franchise agreement
termination. SCSS has requested an increase of 3.2 %, which is slightly less than this amount.
SCSS has submitted similar rate requests to the three other agencies that regulate rates and
services in the other South County areas that they serve: the County of San Luis Obispo, Avila
Beach Community Services District and the Nipomo Community Services District. These
agencies are likely to act on the requested rate increases within the next two months.
SUMMARY
Based on the rate - setting policies and procedures formally adopted by Arroyo Grande, Grover
Beach, Oceano and Pismo Beach in their franchise agreements, this report concludes that:
® SCSS has submitted the required documentation required under its franchise agreements with
the four agencies.
-13-
Item 9.b. - Page 31
w
Solid Waste Rate Review
® SCSS's costs are reasonable.
® Its rate application supports an increase of 5.4 %, which meets the "reasonable return" criteria
set forth in the franchise agreements.
® The requested rate increase of 3.2% is under the "trigger" that would allow the four agencies
the option of early termination of their franchise agreements.
Accordingly, this report recommends adoption of the 3.2% rate increase requested by SCSS.
ATTACHMENT
Appendix: Base Year Rate Request Application from South County Sanitary Service
-14-
® a ® 0 e ® m 0
Item 9.b. - Page 32
-�-VASE YEAR RATE REQUEST
I a.
Arroyo Grande
lb.
Grover Beach
1 c.
Oceano
1d.
Pismo Beach
Supporting Schedules
2. Financial Information: Cost and Revenue Requirements Summary
3. Revenue Offset Summary
4. Cost Summary for Base Year
5. Base Year Revenue Offset Summary
6. Operating Information
Item 9.b. - Page 33
South County Sanitary Service
�- -r r - kv
n r
a V y.. �.. i « 1 � U �• 3 ' � �`�v�'''" � � "�„ rFi ia.'X��t m .�:
1. Rate Increase Requested
x =' ' 'SS"''."'""'ca ": "s"tx"
. i• '�txfi•.� � nA^ � I i M - ih.�ia�•• ���t
Current Increased Adjustment New Cost Per
Rate Schedule Rate Rate (a) Rate Gallon
Single Family Residential
2. Economy Service (I - can curb)
4. Standard Service (2- can curb)
5. Premium Service (3 - can curb)
$ 15.47
$ 15.97
$15.97
$ 20.11
$20.75
$24.75
$ 24.76
$25.55
$25.55
(a) Calculated rates are rounded up to the nearest $0.01.
6. Multiunit Residential and Non- residential Rate increases of 3.2%
will be applied to all rates in each structure
with each rate rounded to the nearest $0.0I
a' ..:irr; , ...:.isia,.� - �?•.,.,.,. „,,.{,,.E4k'.i < °4'.a •... ,.,c F,A s ..- «-.
.:•,rx.
To the best ofmy knowledge, the data and information in this application is complete, accurate, and consistent with the instructions
provided by the Rate Setting Manual,
Name: Tom Martin Title: Division Vice - President
Signature: Date: 09/25/12
Fiscal Year: 1 -1 -2093 to 12 -31 -2013 PS. 7 of
$0,50
$0.32
$0.27
Item 9.b. - Page 34
South County Sanitary Service
2013 Base Year Rate Adjustment Application
Ems"
I . Rate Increase Requested
;< IN ' u
�!R'� "�" .a: � _.y�� ..".4'.µr':'.:: xc � '< ':fi '. o•�;.rfu
3.2%
Current Increased Adjustment New Cost Per
Rate Schedule Rate Rate (a) Rate Gallon
Single Family Residential
2. Economy Service (I - can curb)
4. Standard Service (2- can curb)
5, Premium Service (3 - can curb)
3 14.02
$14.4
$14.47
$ 18.96
$ 19.57
$19.57
$ 23.88
$24.64
$24,64
(a) Calculated rates are rounded up to the nearest $0.01.
6. !Multiunit Residential and Wan - residential Rate increases of
will be applfed to all rates in each structure
with each rate rounded to the nearest $0.01
To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions
provided by the Rate Setting Manual.
Name: Tom Martin Title: Division Vice - President
Signature.: Date: 09125/12
Fiscal Year: 1 -1 -2013 to 12- 31,2013 p, 1 of B
South County Sanitary Service
$0,45
$0,31
$0.26
Item 9.b. - Page 35
2013 Base Year Rate Adjustment Application
Summary OCEANO COMMUNITY
1. Rate Increase Requested
KMIEC
Rate Schedule
Single Family Residential
2. Economy Service (I - can curb)
4. Standard Service (2- can curb)
5. Premium Service (3 - can curb)
j•✓a- ,.,:., ^ L'.ujT N ;, �'^5, ,x;" . �^' n'fl •.
Current Increased Adjustment New Cost Per
Rate Rate (a) Rate Gallon
$ 12.54
$ 1 2.94
$12.94
$ 18.04
$1 8.62
$18.62
$ 35.30
$36.43
$36.43
(a) Calculated rates are rounded up to the nearest $0.01.
6. Multiunit Residential and Non? residential Rate increases of 3,2 .
will be applied to all rates in each structure
with each rate rounded to the nearest $0,01
. d
� ?'n. ' _ .. •�"�':t. xa.rw:itu�.+:�;t... Y_ �. � - ��1,•` a�%�a�:Y.• °' " ?:�.rrr�
To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions•
provided by the Rate Setting Manual.
Name: Tom Martin Title! Division Vice-President
Signature: pate: 09/25/12
Fiscal Year. 1-1 -2013 to 12 -31 -2013 .—Pg. 1 of 6
South County Sanitary Service
$0.40
$0.29
$0.38
Item 9.b. - Page 36
South County Sanitary Service
2013 Base Year Rate Aajustment Application
1. Rate Increase Requested
xi...,t.''•':..;,�. •.:. ;..i � ...:.: ,c r- x,�N,.a,,.'•st_,'r���:�� �'f3. - :o ' •;:. s, •_ ��;:a.. �_.
i,.,,._,.:i.:'.,..;;: :. -'`r`.P: :eyss•XH� � � .. .(1'i: ^• �1rh'jl;_ axy" .J:.(":�:t�:, "'•
:lY�p
uu
3.2%
Current Increased Adjustment New Cost Per
Rate Schedule Rate Rate. (a) Rate Gallon
Single Family Residential
2. Economy Service (1 - can curb)
4. Standard Service (2- can curb)
5, Premium. Service (3 -can curb)
$13.77
$14.21
$14.21
$27.54
$28.42
$28.42
$41,31
$42,63
$42.63
(a) Calculated rates are rounded up to the nearest $0.01,
6. Multiunit Residential and Non- residential Rate increases of 3,2%
will be applied to all rates in each structure
with each rate rounded to the nearest $O,OI
t,:.; z.'.• Y; iM$' "�..sAya;.s..f•:''i'.(:��:: r:. +� _aQc?. ,�
7F^ ,tl
z
�:u':..sir- :. {.�;,sr�:?F .,yx:�t:ic .w;Ji•.vi:..Ca, ira,»......`
To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions
provided by the bate Setting Mahual.
Name: Tom Martin Title: Division Vice- President
Signature: Date: 09125/12
Fiscal Year. 1 -1 -2013 to 12 -31 -2013 PC- 1 of a
$0.44
$0,44
$0.44
Item 9.b. - Page 37
South County Sanitary ,Service
BASE YEAR 2013 RATE TAPPLICATION
Fill aitcial Infor+r: ado it
_ Historical
Current
Projected
$2,893,SQ3 $2,922,444
$299,373
AB939 Fees
Base Year
$317,661 $320,838
2010
2011
2012
2013
2014
.i1,.�..:'.i' >`x:�.''1• ?a...
6. Direct Labor
7. Corporate Overhead
8. Otiiee Salaries
9• Other General and Admin Costs
10 Total Allowable Costs
IL Operating Ratio
12, Allowable Operating Protit
(from Pg. 4)
$2,726,360
$2,796,767
$2.836,773
$2,893,SQ3 $2,922,444
$299,373
AB939 Fees
$312,351
$317,661 $320,838
$574,483
Total Pass Through Costs
$563,031
$574,292 $580,035
$3,680,287
$7,2801503
4"S302,66fi6
3,793.176
7,505,331
$3,806,849 $3,8$6,792
$7,592,310 $7,710,108
p w '
'':; ., J;':: •fi1:l:;,'r •a� .,.„�' e ala''Cly�o il��.,a .,�`.�' ._ �<'��� 5,'6�"
t
13.
Tipping Fees
14.
Franchise Fees
15.
AB939 Fees
16.
Lease Pints to Affiliated Companie
IT
Total Pass Through Costs
$1,526,234
$1,718,522 $1,844,1931 $1,844,1931
y $1,862,635
$1,072,163
51,097,433 $1,191,972 $1,271,258
$1,296,683
$0
$0 $0
92.700%
5.29%
$0
$0
$2,598,397
$0 $0
$2,815,955.L $3,036,165
$0
$3,115,451
$0
$3,159,318
! V
isiieriau� ,
t.�
18. Revenue Requirement $10,107,936 $10,241,070 $10,791,195 $11,367,961 $11,449,757
19. Total Revenue Offsets $l0,1fl7,936 $10,241,070 $10,791,195 $10,841,060 $11,013,200
20. Net Shortfall (Surplus)
2l • Total Residential and Non - residential Revenue without increase
in Base Year (og.5, line 76)
22• Percent Change in Residential and Non- residential Revenue Acquirement
23. Franchise Fee Adjustment Factor (1 - 6 percent)
Limitation due to cumiative increases
24. Percent Change in Existing Rates
$526,901
$10,709,403
$10,709,403
$10,709,403
4.9%
4,9%
4.9%
90.000%
5.40%
94,000%
5.21%
92.700%
5.29%
-2,20%
-2.010%1
2.09004)
3.20%
3.20%
Fiscal Year; 1.1 -2013 to 12 -31 -2093 pg. 2 of 6
Item 9.b. - Page 38
Historical
Current
Projected
$4,468,112
$4,512,793
Base Year
45.
2010
2011
2012
2013
2014
Residential Revenue (without increase in Base Yr.)
28. Single Family Residential
Multiunit Residential Dumpster
29. Number of Accounts
30. Revenues
31. Less Allowance for Uncollectible Resid Aecot
32. Total Residential Revenue
005,7601i $6,332;72511 $6,351,090°1 $6,478,112
_Non - residential Revenue (without increase in Base 17r,)
Account Type
Non - residential Can
33. Number of Accounts 10
34. Revenues $5,419
Non - residential Wastewheeler
35. Number of Accounts
36. Revenues
Non - residential Dumpster
37. Number of Accounts
38. Revenues
39. Less; Allowance for Uncollectible Non -resid
101 10 II 10 11_10
43 1 $14,899 11 $15,005 $1 5,155
IL192511 L9121 190711 190711 19071
$3,800,790 $3,816,704 $4,270,699 $4,301,021 $4,344.031
40.
Total Non - residential Revenue
i $4,173,002 $4,190,956 $4,436,612
$4,468,112
$4,512,793
45.
Interest on Investments
$46,26211 .$21,810 $21,858
$21,858j/
$22,295
46. Other Income
47, Total Revenue Offsets
Fiscal Year. 1 -1 -2013 to 12 -39 -2013 P . 3 of 6
Item 9.b. - Page 39
f e ♦ e y
Labor
Payroll Taxes
48. Total Direct Labor
49. Corporate Overhead
Less limitation (enter as neg,
Total Corporate Overhead
Office Salary
Payroll Taxes
50. Total Office Salaries
U
Allocated expenses
Bad Debt
Bond expense
Computer services
Depreciation on Bldg and Equip
Depreciation on Trucks /Containcr
Drive Cam fees
Dues and Subscriptions
Gas and oil
Interest Expense
Laundry
Legal and Accounting
Miscellaneous and Other
Office Expense
Operating Supplies
Other insurance
Other Insurance - medical
Other Taxes
Outside Services
Postage
Public Relations and Promotion
Permits
Rent
Telephone
Tires (included in repairs)
Travel
Truck Repairs
Utilities
Total Other Gen /Admin Costs
52. Total Tipping Fees
53. Total Franchise Fee
54, Total AB 939 /Regulatory Fees
55. Total Lease Pmt to Affil Co.'s
56. Total Cost
SASE YE
2010 AR Z011 2012 2413 1i
$2,527,980 $2,591,830 $2,627,462 $2,680,011
$198,380 $204,937 $209,311 $213,497
$2,726,360 $2,796,767 $2,836,773 $2.893.508
483,655 $479,800 $489,39(,
180,989) ($167,449} {$1X,735
302,666 $312.351 $317,661
$540,665 $593,655 1 $523,69011 $534,164
$33,818 $48,706 $39,341 $40,128
$574,483 $642.361 $503,031 $574.292
Fiscal Year 1 -1 -2013 to 12 -31 -2013 Pg. 4 of 6
Item 9.b. - Page 40
South County Sanitary Service
Base '( r
Rate ju nt Application
Base Year Revenue Offset Summary
Description of Revenue
57,
58,
59.
60.
61.
tit.
63.
64.
65.
Residential Revenue
For Information Purposes Only
(without increase in Base Year)
Single Family Residential ^' ",d• a� x $6.351,090 $],289,298 5864,086 $872,876 $3,324;830
Multiunit Residential Dumpster
Number of Accounts
Revenues
Less Allowance for Uncollectable W, $0
Total Residential Revenue
Non - residential Dumpster
cp; . $6,351;490 $1,289,298 $864,086 5872,876 $3,324,834 $0 1
Nor- residential Revenue (without increase in Base Year)
Account Type
Number of Accounts
(Non- resinennal t-an
876 3
Number of Accounts
Revenues
4811
26 12
t0
Less: Allowance for Uncoilectible
Revenues
;. ' ; e$3 S 0t7a"
$15,445
$7 741 $4,959
$2,305
Non - residential Wastewlieeler
Total Nan - residential Revenue
Number of Accounts
? '. `t; ��°titii?_. fi;
157
58 551
44
$0
75,
Revenues
t 1 c7 nQf,
enn n4u I mon em I
can wnr
Item 9.b. - Page 41
Non - residential Dumpster
66.
Number of Accounts
' ^` '.; a't' ' "
_. ;� <.i....� 1 1950 397 294 383
876 3
67.
Revenues
? <47'�Sjti�fli's $4,169,364 $1,014,670 $882,940 $692,054
$1,579,704 $131,657
68,
Less: Allowance for Uncoilectible
Non - residential Accounts
? 4X;fA} •( $U
69.
Total Nan - residential Revenue
. _;, Sj.' $4,336,455 $1,062,499 5977,402 $716,850 1
$1 4 $]3l 657
74.
Interest on Investments
$�8F 521,858
$0
75,
Other Income
76.
Total Revenuo Offsets
Fiscal Year, 1 -1 -2013 to 12 -31-2013
P . S of G
Item 9.b. - Page 41
South County Sanitary
Base Year Rate Adjustment Application
Operating Information
77. Arroyo Grande
Grover Beach
Pismo Beach
Oceano CSD
Niporno CSD
County
78, Routes - Garbage
74, Routes - Recycling
80. Direct Labor Hours
Historical
L Current Pro'ected
5,600
-0.3%
cent Percent
L2-L"
Percent Base Year Percent
010 nge 24lt Change
2012 Change 2013 Change 2014
t.1.J. 8J@ 1 S! _,I l.,
5,594
0.1%
5,600
-0.3%
5,585
0.5%
5,615
0.0%
5,615
4,025
0.9%
4,062
-0.1%
4,058
1.27/.
4,108
0,0%
4.108
3,581
0.8%
3,609
-1.0%
3,574
0.5%
3,592
0.0%
3,592
1,623
0.6%
1,633
1.7%
1,660
1.2%
1,680
0.0%
1,680
3,682
0,8%
3,710
2.0%
3,786 1
0.1%1
3,789
0.0%
3,789
5,345
2.7%
5,488
5.8' /0
5,804
-2,1%
5,683
0.0%
5,683
23,850
1.1%
24,102
1.5%
24,467
0.0%
24,467
0.0%
24,467
10
- 20.0%
8
0.0%
8
0.0%
8
0.0%
8
6
0.0%
6
0.0%
6
0.0%
6
0.0%
6
33,280 1
-12,5-/,,Il
29.1200.0
°, /0
1 29,120
0.0%
29,120
0.0 %
29,120
Nan - residential Garbage
Accounts
80, Arroyo Grande
Grover Beach
Pismo Beach
Oceano CSD
Niporrto CSD
County
81. Routes - garbage
Routes - recycling
82. Direct Labor Hours
496
-1.2%
490
-3,1%1
475
1.3%
481
0.0%
481
463
-1.9%
454
-4.4%
434
017%
437
0.0%
437
361
1,7%
367
-111%
363
-0.6%
361
010%
361
205
1.0%
207
-1,9%
203
115%
206
0.0%
206
-2.7%
217
-0.9%
215
0.0%
215
464
-2.6%
452
0.7%
455
0.0%
455
In223
2,205
-2.8%
2,144
0,5%
2,155
0.0%
2.155
6
2
16,640
- 16,7%
0.0%
-12,5%
5
2
14,560
0.0%
0.0%
0,0%
5
2
14,560
0,0%
0.0%
0,0%
5
2
14;560
i
Recyclable Materials - All areas - Commingled Recycling (in tons)
Accounts
83. Tri- Cities
Nipomol0ceano CSD
84, County
7,829
0.2%
7,841
0,7%
7,894
0.0%
7,894
0.0%11
7,894
2,878
0.2%
2,883
0.7%
2.902
0.0%
2,902
0.0%
2,902
921
0,20,..
922
0.70%
929
0.0%
929
0,0%
929
11,628
0.2%
11,646
0.7%
11,725
0.0%
11,725
0.0%
1I,725
Recyclable Materials - All areas- Greenwaste Recrelinr
Routes
Tons Collected
Direct Labor Hours
4 0.0% 4
8,400 28.7% ]0809
10,400 0.0%1 10,400
0.0%
2.0%
0.0%
4..
0.0% 4
7.9% 11,894
20.0% 12,480
010%
0.0%
0.0 °.�0
4
11,026
10,400
11.894
12,480
Garbage Tons Collected I 42,880 -8.9% 39,063 3.5% 40,417 0.0% 40,417 0.0% 40,417
Fiscal Year. 1.1.2093 to 92 -31 -2013 F . 6 of 6
Item 9.b. - Page 42
ATTACHMENT 3
CITY OF ARROYO GRANDE
NOTICE OF PUBLIC HEARING REGARDING
PROPOSED SOLID WASTE RATE INCREASE
Dear Property Owners and Tenants - Customers:
This notice is intended to inform you that the City of Arroyo Grande ( "the City ") will hold a public hearing regarding
solid waste disposal rate increases (the "Proposed Rate Increase ") proposed by South County Sanitary Service ( "the
Garbage Company ") for properties and customers receiving solid waste services within the City. The Proposed Rate
Increase will be considered by the Arroyo Grande City Council at the date, time and location specified below. Consistent
with the requirements of Proposition 218, this notice also provides you with the following information:
Date, Time and Place of the Public Hearing
Majority Protest Procedures
a Reason for the Proposed Rate Increase
Basis Upon Which the Proposed Rate Increase is Calculated
Proposed Rate Increase Amounts
NOTICE OF PUBLIC HEARING
A Public Hearing for the Proposed Solid Waste Rate Increases within the City limits will be held on:
(The public meeting originally scheduled for March 12, 2013 was delayed to comply with legal notification
requirements)
Date: May 14, 2013
Time: 6:00 pm
Place: Arroyo Grande City Council Chambers, 215 East Branch Street, Arroyo Grande, CA
At the Public Hearing, the Arroyo Grande City Council will consider all public comment in support and in
opposition of the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California
Constitution (below). If approved, the Proposed Rate Increase would become effective June 1, 2013.
MAJORITY PROTEST PROCEDURES
Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest
against the Proposed Rate Increase to the City Clerk before the close of the Public Hearing referenced above.
• An owner(s) of property (parcel(s)) receiving solid waste service within the city limits. If the person(s) signing
the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the
protest must contain or be accompanied by written evidence that such person signing the protest is the owner of
the parcel(s) receiving solid waste services; and
A Tenant(s) whose name appears on the Garbage Company's records as the customer of record for the
corresponding parcel receiving solid waste service within the city limits (tenant- customer).
A valid written protest must contain a statement that you protest the increase in solid waste rates, the address OR
Assessor's Parcel Number (APN) of the parcel or parcels which receive solid waste service and must be signed by either
the owner or the tenant - customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a
majority protest to the proposed solid waste rate increase subject to the requirements of Section 6 of Article XIII D of the
California Constitution. Written protests will not be accepted by e -mail or by facsimile. Verbal protests will not be
Item 9.b. - Page 43
counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the
City Clerk before the close of the Public Hearing referenced above.
Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande, CA 93420
Written protests may also be personally delivered to the City Clerk at Arroyo Grande City Hall located at 300 East Branch
Street, Arroyo Grande, California.
If valid written protests are presented by a majority of owners and /or tenants - customers of parcels receiving solid waste
service within the city limits, then the City will not adjust/increase the solid waste rates. Only one protest per parcel will
be counted in determining whether or not a majority protest exists.
REASON FOR THE PROPOSED RATE INCREASES
The Proposed Rate Increases (amounting to an increase of approximately 3.2% for residential services) are necessary for
the Garbage Company to continue to provide safe, environmentally sound and reliable solid waste removal, transportation
and disposal services to the citizens of the City of Arroyo Grande. The increases requested by the Garbage Company are
due to increasing operational costs. Several factors have contributed to these increased costs, including, but not limited to,
the rising costs associated with the operation of a garbage company, increased costs associated with operation and fuel for
vehicles, ongoing maintenance, increased labor costs, increased landfill rates, increased green waste fees, and increased
costs associated with meeting more stringent State and Federal regulations.
BASIS UPON WHICH THE PROPOSED RATE INCREASE IS CALCULATED
The Proposed Rate Increases are based on the following cost increases incurred by the Garbage Company:
1. The Proposed Rate Increase is based on increased costs for fuel, for vehicles, ongoing maintenance,
and increased Garbage Company labor costs.
A copy of the 2013 Base Year Rate Adjustment Application, which provides additional information
on the proposed rate increase is available at the City Clerk's office located at 300 East Branch,
Arroyo Grande, CA
PROPOSED RATE INCREASE AMOUNTS
The following charts provide a summary of the current solid waste rates and the Proposed Rate Increases
Item 9.b. - Page 44
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 1, 2013
CITY OF ARROYO GRANDE
Service Descri tlon
Pickups
Per Week
Current Monthly
Rate Effective
11 -1 -2011
Proposed Rate
Adjustment % '
Proposed Monthly
Rate Effective'
06/01/2013
RESIDENTIAL:
32 Gallon Waste Wheeler
1
$15.47
3.2%
$15.97
64 Gallon Waste Wheeler
1
$20.11
3.2%
$20.75
96 Gallon Waste Wheeler
1
$24.76
3.2%
$25.55
TWO -64 Gallon Waste Wheelers
1
$29.40
3.2%
$30.34
ONE 64 & ONE 96 Gallon
1
$34.06
3.2%
$35.15
TWO -96 Gallon Waste Wheelers
1
$38.70
3.2%
$39.94
Garbage extras (per bag)
$4.38
3.20%
$4.52
Extended Vacation Service
$12.55
3.20%
$12.95
Residential customers must use the waste wheelers provided by the garbage company.
Notations in parenthesis () refer to information found at the end of this rate schedule, on page 4.
MISCELLANEOUS CHARGES - ALL
CUSTOMERS:
Overstacked Garbage & extra
bags Minimum /unit
each
$4.38
3.20%
$4.52
Overstacked Greenwaste &
extra bas Minimum /unit
each
$2.19
3.20%
$2.19
Overstacked Blue Bin & extra
bags Minimum /unit
each
$2.19
3.20%
$2.19
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE RATES
per month
$10.94
3.20%
$11.29
Monthly charge for additional 96-
gallon green waste service
per month
$3.03
3.20%
$3.13
Extended Vacation Service
per month
$10.19
3.20%
$10.52
Waste wheeler cleaning
each time $16.31
3.20%
$16.83
Trip charge
each time $10.94
3.20%
$11.29
Non-payment downsize service
each time
$10.94
3.20%
$11.29
Non - payment redeliver waste
wheeler
each time
$10.94
3.20%
$11.29
Non-payment reconnect service
each time
$26.29
3.20%
$27.13
Small item pickup (TV, toilet
each
$25.66
3.20%
$26.48
Appliance picku - residential
each
$36.17
3.20%
$37.33
Larger than residential appliance
or glass, glass doors, or plate
lass
$0.00
$0.00
Garbage extras on your
scheduled pickup day
er and
$9.23
3.20%
$9.53
Garbage extras -NOT ON YOUR
SCHEDULED PICKUP DAY
per yard
$25.48
3.20%
$26.30
Item 9.b. - Page 45
Commercial Waste Wheeler rent
I per month
$3.38
3.20%
$3.49
Re- deliver bin on stopped acct
each time
$31.38
3.20%
$32.38
Large Compactors > 4 yards)
per yard
$12.48
13.38%
$14.15
Small Compactors (4 yards &
below ) assume 3 to 1 compaction
Sunday Service (in additional to
garbage service level)
per month $54.76
3.20%
$56.51
Recycle bin rental
per month $6.09
3.20%
$6.28
Stand by time
per hour
$52.58
3.20%
$54.26
Extra bin cleaning
$48.93
3.20%
$50.50
Damage /Destruction of bins or
waste wheelers
Short Term Dumpsters:
Delivery & Pickup-Bin
$31.38
3.20%
$32.38
Delivery & Pickup -Waste
Wheeler
$10.94
3.20%
$11.29
Rental
Per Da
$2.32
3.20%
$2.39
Empties
Per Yard
$25.47
3.20%
$26.29
Mattress:
Twin
Each
$11.84
3.20%
$12.22
Double
Each
$21.96
3.20%
$22.66
Queen
Each
$30.40
3.20%
$31.37
King
Each
$35.49
3.20%
$36.63
Late Fee (8)
Per Month
$5.00
$5.00
Late Fees are imposed for residential customers over 30 days delinquent and commercial customers over 30
days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior
notice is required, as this late fee policy is stated at the bottom of every bill.
Please recycle, its cheaper and it helps the Community achieve its AB939 goal to reduce waste.
Any additional recycling services are charged out at 50% of the garbage rate.
FURTHER INFORMATION
If you have questions about the Proposed Rate Increase, please contact Tom Martin at 489 -4246.
APRIL 22-26, 2011
Item 9.b. - Page 46
3 times garbage
rate
Waste Connections, Inc. is pleased to offer its customers the convenience of paying their bills online at
www.wasteconnections.com
What is WCI eBilling?
• WCI eBilling allows you to conveniently receive and pay bills on the Internet. It is fast, secure, and offered at no
extra charge!
• Convenience: No More buying stamps or writing checks
• Flexibility: We email you when a new bill is ready. You can access and pay your bill from anywhere, any time.
• Control: You have control over when you pay your bill.
What do I need to enroll?
• A copy of your paper bill
• Your checking account number and routing number (both are printed on your checks)/ or your valid credit card.
• An E -mail address
• A computer with Internet access. Your browser must have 128 bit encryption.
Is it Secure?
® We are committed to keeping any information you submit to us safe, secure, and private. WCI eBilling uses
safeguards including 128 bit secure socket layer (SSL) encryption and password protection to ensure the security
of your transactions and personal information.
To Enroll On -Line: You will need a Garbage bill
Log onto www.wasteconnections.com
Click on Online Bill -Pay — Top right side of screen
Click on Click here to go Directly to online bill pay
Under New Users "click the Enroll button"
Enter Account Number
Enter Invoice Number
Your invoice number is located below your account number at the upper right hand corner of your bill
At Payment Information Check one Box: Add a Bank Account or Add a Credit Card
Enter payment information
Click on Enroll after entering your information
How to set up for recurring payments:
Log on to www.wasteconnections.com
At the Home Screen
Click on Pam in the blue box under "Waste Connections, Inc"
Click on Add Recurring Payment button
Select Account No. (if not already filled in)
Select Payment Account (hit down arrow to choose)
Automatic payment is the Default and Preferred option
Click Submit
(This will not pay the current invoice if one is due, you will have to make a one - time payment.)
How to make a one -time payment:
Log on to www.wasteconnections.com
Enter your user name and password
At the Home Screen
Your most recent invoice will be showing.
Under Action click on the View/Pay Bill button
This will take you to another screen.
Hit the down arrow to select payment account you are paying from
Select when you would like bill to be paid
Select Pay Now
You will get a Confirmation Number when payment is complete
Item 9.b. - Page 47
CITY OF ARROYO GRANDE
NOTICE OF PUBLIC HEARING REGARDING
PROPOSED SOLID WASTE RATE INCREASE
Dear Property Owners and Tenants - Customers:
This notice is intended to inform you that the City of Arroyo Grande ( "the City ") will hold a public hearing regarding
solid waste disposal rate increases (the "Proposed Rate Increase ") proposed by South County Sanitary Service ( "the
Garbage Company ") for properties and customers receiving solid waste services within the City, The Proposed Rate
Increase will be considered by the Arroyo Grande City Council at the date, time and location specified below. Consistent
with the requirements of Proposition 218, this notice also provides you with the following information:
Date, Time and Place of the Public Hearing
Majority Protest Procedures
Reason for the Proposed Rate Increase
Basis Upon Which the Proposed Rate Increase is Calculated
Proposed Rate Increase Amounts
NOTICE OF PUBLIC HEARING
A Public Hearing for the Proposed Solid Waste Rate Increases within the City limits will be held on:
Date: May 14, 2013
Time: 6:00 pm
Place: Arroyo Grande City Council Chambers, 215 East Branch Street, Arroyo Grande, CA
At the Public Hearing, the Arroyo Grande City Council will consider all public comment in support and in
opposition of the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California
Constitution (below). If approved, the Proposed Rate Increase would become effective June 1, 2013.
MAJORITY PROTEST PROCEDURES
Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest
against the Proposed Rate Increase to the City Clerk before the close of the Public Hearing referenced above.
• An owner(s) of property ( parcel(s)) receiving solid waste service within the city limits. If the person(s) signing
the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the
protest must contain or be accompanied by written evidence that such person signing the protest is the owner of
the parcel(s) receiving solid waste services; and
A Tenant(s) whose name appears on the Garbage Company's records as the customer of record for the
corresponding parcel receiving solid waste service within the city limits (tenant- customer).
A valid written protest must contain a statement that you protest the increase in solid waste rates, the address OR
Assessor's Parcel Number (APN) of the parcel or parcels which receive solid waste service and must be signed by either
the owner or the tenant - customer of the parcel or parcels, One written protest per parcel shall be counted in calculating a
majority protest to the proposed solid waste rate increase subject to the requirements of Section 6 of Article XIII D of the
California Constitution. Written protests will not be accepted by e -mail or by facsimile. Verbal protests will not be
counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the
City Clerk before the close of the Public Hearing referenced above.
Item 9.b. - Page 48
Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande, CA 93420
Written protests may also be personally delivered to the City Clerk at Arroyo Grande City Hall located at 300 East Branch
Street, Arroyo Grande, California.
If valid written protests are presented by a majority of owners and /or tenants - customers of parcels receiving solid waste
service within the city limits, then the City will not adjust/increase the solid waste rates. Only one protest per parcel will
be counted in determining whether or not a majority protest exists.
REASON FOR THE PROPOSED RATE INCREASES
The Proposed Rate Increases (amounting to an increase of approximately 3.2% for each category of service except for
large compactors, which are proposed to increase by 13.38 %) are necessary for the Garbage Company to continue to
provide safe, environmentally sound and reliable solid waste removal, transportation and disposal services to the citizens
of the City of Arroyo Grande. The increases requested by the Garbage Company are due to increasing operational costs.
Several factors have contributed to these increased costs, including, but not limited to, the rising costs associated with the
operation of a garbage company, increased costs associated with operation and fuel for vehicles, ongoing maintenance,
increased labor costs, increased landfill rates, increased green waste fees, and increased costs associated with meeting
more stringent State and Federal regulations.
BASIS UPON WHICH THE PROPOSED RATE INCREASE IS CALCULATED
The Proposed Rate Increases (are based on the following cost increases incurred by the Garbage Company:
1. The Proposed Rate Increases are based on increased costs for fuel, for vehicles, ongoing maintenance,
and increased Garbage Company labor costs.
A copy of the 2013 Base Year Rate Adjustment Application, which provides additional information
on the proposed rate increase is available at the City Clerk's office located at 300 East Branch,
Arroyo Grande, CA
Item 9.b. - Page 49
PROPOSED RATE INCREASE AMOUNTS
The following charts provide a summary of the current solid waste rates and the Proposed Rate Increases
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 1, 2013
CITY OF ARROYO GRANDE
Rates are the same as commercial rates
1 yd dum ster
1
$76.42
3.20%
$78.87
1 yd dum ster
2
$111.50
3.20%
$115.07
1 yd dum ster
3
$146.62
3.20%
$151.31
1 yd dum ster
4
$187.91
3.20%
$193.92
1 yd dum ster
5
$220.92
3.20%
$227.99
1 yd dum ster
6
$262.22
3.20%
$262.22
1 yd dum ster
7
$318.72
3.20%
$328.92
1.5 yd dum ster
1
$86.74
3.20%
$89.52
1.5 yd dum ster
2
$134.22
3.20%
$138.52
1.5 yd dum ster
3
$189.99
3.20%
$196.07
1.5 yd dum ster
4
$247.79
3.20%
$255.72
1.5 yd dum ster
5
$301.48
3.20%
$311.13
1.5 yd dum ster
6
$340.72
3.20%
$351.62
1.5 yd dum ster
7
$398.95
3.20%
$411.72
2 yd dum ster
1
$97.07
3.20%
$100.18
2 yd dum ster
2
$163.13
3.20%
$168.35
2 yd dum ster
3
$231.28
3.20%
$238.69
2 yd dum ster
4
$305.59
3.20%
$315.37
2 yd dum ster
5
$377.87
3.20%
$389.97
2 yd dum ster
6
$423.30
3.20%
$436.85
2 yd dum ster
7
$492.18
3.20%
$507.93
3 yd dum ster 1 $115.62
3.20%
$119.31
3 yd dum ster
2
$218.88
3.20%
$225.88
3 yd dum ster
3
$305.59
3.20%
$315.37
3 yd dum ster
4
$398.51
3.20%
$411.26
3 yd dum ster
5
$472.86
3.20%
$487.99
3 yd dum ster
6
$563.70
3.20%
$581.74
3 yd dump ster
7
$720.00
3.20%
$743.03
COMMERCIAL DUMPSTERS - ALL
AREAS Can't
: '
4 yd dum ster
1
$144.55
3.20%
$149.18
4 yd dum ster
2
$256.04
3.20%
$264.23
4 yd dum ster
3
$367.53
3.20%
$379.29
4 yd dum ster
4
$472.86
3.20%
$487.99
4 yd dum ster
5
$584.36
3.20%
$603.06
4 yd dumpster
6
$693.81
3.20%
$716.01
Item 9.b. - Page 50
4 vd dumpster 1 7 1 $883.58 1 3.20% 1 $911.85
6 yd dum ster
1
$216.83
3.20%
$223.77
6 yd dum ster
2
$384.06
3.20%
$396.35
6 yd dum ster
3
$551.30
3.20%
$568.94
6 yd dum ster
4
$709.29
3.20%
$731.99
6 yd dum ster
5
$876.54
3.20%
$904.59
6 yd dum ster
6
$1,040.72
3.20%
$1,074.02
6 yd dum ster
7
$1,325.37
3.20%
$1,367.78
3.20%
$3.38
3.20%
$3.49
3.20%
8 yd dum ster
1
$289.10
3.20%
$298.35
8 yd dum ster
2
$512.08
3.20%
$528.47
8 yd dum ster
3
$735.06
3.20%
$758.58
8 yd dum ster
4
$945.72
3.20%
$975.98
8 yd dum ster
5
$1,168.72
3.20%
$1,206.12
8 yd dum ster
6
$1,387.62
3.20%
$1,432.02
8 yd dum ster
7
$1,767.16
3.20%
$1,823.71
The rates shown above include the monthly container rental fee and a semi - annual dum ster cleaning.
The rates are the same for bins and garwoods, when volume is identical. Bins and garwoods are types of
containers used for recycling.
1 Can*
1
$18.58
3.20%
$18.58
2 Cans *
1
$39.23
3.20%
$40.49
3 Cans *
1
$45.44
3.20%
$45.44
4 Cans *
1
$57.80
3.20%
$59.65
$10.94
3.20%
$11.29
Monthly charge for additional 96-
gallon green waste service
Garbage extras (per bag)
$3.03
$4.38
3.20%
$4.52
Garbage extras (per and
$10.19
$9.23
3.20%
$9.53
Commercial Waste Wheeler rent
3.20%
$3.38
3.20%
$3.49
3.20%
Compactors (per and $12.43 3.20% $12.83
* Maximum volume and weight per garbage can : 33 gallons / 80 pounds
each time
MISCELLANEOUS -
ALL CUSTOMERS.
Overstacked Garbage & extra
bas Minimum /unit
each
$4.38
3.20%
$4.52
Overstacked Greenwaste &
extra bas Minimum /unit
each
$2.19
3.20%
$2.19
Overstacked Blue Bin & extra
bags Minimum /unit
each
$2.19
3.20%
$2.19
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE RATES
per month
$10.94
3.20%
$11.29
Monthly charge for additional 96-
gallon green waste service
per month
$3.03
3.20%
$3.13
Extended Vacation Service
per month
$10.19
3.20%
$10.52
Waste wheeler cleaning
each time $16.31
3.20%
$16.83
Trip charge
each time $10.94
3.20%
$11.29
Non-payment downsize service
each time
$10.94
3.20%
$11.29
Non - payment redeliver waste
wheeler
each time
$10.94
3.20%
$11.29
Item 9.b. - Page 51
Non-payment reconnect service
each time
$26.29
3.20%
$27.13
Small item pickup (TV, toilet
each
$25.66
3.20%
$26.48
Appliance pickup-residential
each
$36.17
3.20%
$37.33
Larger than residential appliance
or glass, glass doors, or plate
lass
$0.00
$30.40
3.20%
$31.38
$0.00
$32.38
$35.49
Garbage extras on your
scheduled pickup day
per yard
$9.23
3.20%
$9.53
Garbage extras -NOT ON YOUR
SCHEDULED PICKUP DAY
peryard
$25.48
3.20%
$26.30
Commercial Waste Wheeler rent
per month
$3.38
3.20%
$3.49
Re- deliver bin on stopped acct each time $31.38
3.20%
$32.38
Large Compactors > 4 yards)
per yard
$12.48
13.38%
$14.15
Small Compactors (4 yards &
below)
Sunday Service (in additional to
garbage service level)
Recycle bin rental
Stand by time
Extra bin cleaning
Damage /Destruction of bins or
waste wheelers
Short Term Dumpsters;
Delivery & Pickup -Bin
Delivery & Pickup -Waste
Wheeler
Rental
Empties
assume 3 to 1 compaction
3 times garbagf
rate
per month $54.76
3.20%
$56.51
per month $6.09
3.20%
$6.28
per hour
$52.58
3.20%
$54.26
Double
$48.93
3.20%
$50.50
$22.66
Queen
Each
$30.40
3.20%
$31.38
3.20%
$32.38
$35.49
$10.94
3.20%
$11.29
Per Da
$2.32
3.20%
$2.39
Per Yard
$25.47
3.20%
$26.29
Mattress:
Twin
Each
$11.84
3.20%
$12.22
Double
Each
$21.96
3.20%
$22.66
Queen
Each
$30.40
3.20%
$31.37
King
Each
$35.49
3.20%
$36.63
Late Fee (8)
Per Month
$5.00
$5.00
Late Fees are imposed for residential customers over 30 days delinquent and commercial customers over 30
days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior
notice is required, as this late fee policy is stated at the bottom of every bill.
Please recycle, its cheaper and it helps the Community achieve its AB939 goal to reduce waste.
Any additional recycling services are charged out at 50% of the garbage rate.
FURTHER INFORMATION
If you have questions about the Proposed Rate Increase, please contact Tom Martin at 489 -4246.
Item 9.b. - Page 52