CC - Item 4E - Consideration of Request from Consolidated Disposal Service Annual Cost of Living Adjustment0
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL Wd
FROM:
vl-~ L CROWE, CITY MANAGEDATE: SEPTEMBER 21, 2005
RE: CONSIDERATION OF REQUEST FROM CONSOLIDATED
DISPOSAL SERVICES (CDS) FOR ANNUAL COST OF
LIVING ADJUSTMENT OF RESIDENTIAL AND COMMERCIAL
REFUSE RATES
Consolidated Disposal Services (CDS) has requested an increase in residential refuse
rates of 3.7% and for commercial rates an increase of 4.3%. This would increase the
current monthly residential rate of $12.00 to $12.44. After analysis and review of their
proposal by our solid waste management consultant and staff, we jointly recommend the
requested cost of living adjustment. The proposed increases are fair and reasonable and
in accordance with the City's franchise agreement with the CDS.
Attached are copies of the June 2005 CPI report and the 2005-06 Rate Schedule that
reflects the recommended cost of living increase.
RECOMMENDATION
It is recommended that the City Council approve the request by Consolidated Disposal
Services, Inc. for cost of living adjustment of waste collection and disposal rates for
2005-06, effective August 1, 2005.
CCU
SEP 2 7 2:055
ITE ,U NL). 'E
•
•
C~gNS0LIDATED DISPOSAL SERVICE
A subsidiary of t~,REPUBLIC GOVICFB1 INC.
August 24, 200;
Mr. Bill Crowe
City Manager
City of Rosemead
8838 East Valley Blvd,
Rosemead, CA 91770
RE: A lieatio t for Adjustment of Waste Co11 ction and D19asal Rates for Year 2005-2006
Dear Mr, Crowe:
2495 E. 981h Street
Long Beach, GA 0080B
Faasir dle (662) 531.4710
Consolidated Disposal Service hereby submits its annual request for adjustment of the waste collection and
disposal rates to the City of Rosemead. This application is based on the franchise agreement's allowance
for the rate adjustments based on CPI and disposal fee increases.
The annual adjustment has been calculated using the formula specified in the Franchise Agreement, whioh
weights the CPI at 70% and the tipping fee et 30%.
Rate Adjustment Formula - Residential
The rate adjustment formulas to be applied to all Rosemead residents is as follows,
Weighted Value Cost Increase Adjustment Percentage
Consumer Price
Index- Year 2005 70% X 3.6% = 2.5%
Disposal Tipping
Fees - Year 2005 30% X 4.0% = 1.2%
Total Residential
Adjustment 3.7%
Explanation of Cost Chan es
1. Consumer Price Increase: The CPI reported by the U.S. Department of Labor, Bureau of Labor
Statistics for the Los Angeles- Anaheim-Riverside area is 3.6% for the past 12 months, as of the
month of June 2005 which index is stipulated In the Franchise Agreement.
2. Disposal Tipping Fees: Effective rate for the year 2004-2005 was $30.22. The new Effective Rate
for 2005-2006 is S3I.43
3. (See Rate Change Calculation Sheet). This increase is due to the early closure of the Puente Hills
Landfill and the increase use of other disposal sites.
r~
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vn~.rren or aei.ewo ~ratn
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Rate d ustment Formula - Commercial
The rate adjustment formula will be applied to all commercial accounts as follows;
Consumer Price Index 2.5% (70% x 3.6%)
Disposal Tipping Fee Increase 1.8% (30% x 6.0%)
Increase in Commercial Rates 4.3%
Consolidated Disposal Service respectfully requests that the City Council consider this rate
adjustment application and the new rates to be approved to take effect August 1, 2005.
Should you have any questions regarding this application or any other matter, please do not hesitate to
contact me at (562) 663-3453.
Sinoerely, `1..
Richard Fierro
Director of Community Affairs
Enolosures -1t;ork Sheet
0
•
City of Rosemead Rates
2005 - 2006
Residential Rates:
Category
Current
Rate
New
Rate
Single Family Dwelling - Residential Curbside one 100 Gal Cart)
$
12.00
$
12.44
Multiple Family Dwelling-Detached Units On A Single Lot: First Unit
$
12.00
$
12.44
Each Additional Unit
$
9.69
$
10.05
Multiple Family Units - Attached Units ( Apartments and Condos)
And Mobilhome Parks: First Unit
$
12.00
$
12.44
Each Additional Unit
$
7.89
$
8.18
Special Qualified Senior Citizen Hardship Rate / For Residential
Curbside Service
$
7.98
$
8.28
Special Qualified Handicapped Citizen / Backyard Collection Rates
For Single Family Residences:
$
12.00
$
12.44
Additional 100 Gallon Cart
$
2.06
$
2.14
Special One-Time Pick-Up Cost For Pick-Up And Disposal Of
Appliances, Furniture And Bulk Items
$
15.32
$
15.89
Residential - Special One-Time Drop-Off And Collection of A
3-Cubic Yard Bin
Pick U / Delivery Charge
$
53.06
$
54.98
Each Dump
$
21.33
$
22.18
Total
$
74.39
$
77.16
Residential - Special One-Time Drop-Off And Collection of A 10 to
40 Cubic Yard "Roll-Off' Container
$ 414.84
$
430.19
Overweight 7 Ton Limit
$
50.63
$
52.66
Dail Rental After Seven Days Without A Dump
$
15.00
$
15.00
Dead Run
$
75.00
$
75.00
Commercial Rates
3 Cubic Yard Bins
CURRENT RATE
Without
Forklift Forklift
1 Da P/U
96.10
105.71
2 Da P/U
145.87
160.42
3 Da P/U
197.90
217.67
4 Da P/U
250.30
275.32
5 Da P/U
309.24
340.17
6 Da P/U
354,23
389.68
T
NEW RATE
Without
Forklift Forklift
1 Da P/U
101.64
110.29
2 Da P/U
154.27
167.38
3 Da P/U
209.30
227.11
4 Da P/U
264.72
287.26
5 Da P/U
327.05
354.92
6 Da P/U
374.63
406.58
1 1/2 Cubic Yard Bins
CURRENT RATE
Without
Forklift Forklift
NEW RATE
Without
Forklift Forklift
1 Da P/U 64.67 71.13
1 Da P/U 68.39 74.22
Category
Current
Rate
New
Rate
Commercial - One-Time Drop-Off And Collection Of A 3-Cubic Yard Bin
Pick U / Delivery Charge
$ 65.64
$ 67.30
Each Dump
$ 34.51
$ 35.13
Total
$ 100.15
$ 102.43
Commercial - Special One-Time Drop-Off And Collection of A 10 to
40 Cubic Yard "Roll-Off' Container
$ 376.04
$ 392.35
Overweight 7 Ton Limit
$ 49.23
$ 50.12
Dail Rental After Seven Da Without A Dump
$ 15.00
$ 15.00
Dead Run
$ 75.00
$ 75.00
Commercial - Special One-Time Drop-Off And Collection Of A 30
Cubic Yard Compactor Container
$ 498.12
$ 519.72
Overweight 9 Ton Limit
$ 49.23
$ 50.12
Dail Rental After Seven Days Without A Dump
$ 15.00
$ 15.00
Dead Run
$ 75.00
$ 75.00
Commercial - Special Barrel Service for Qualified Commercial,
Limited Use Customers. Max 2-35 gallon cans 1 time per week
$ 65.43
$ 68.27
Rate Change Calculation
Landfill Dump Fees
Old
Weight
Effective Rate
Puente Landfill
$
20.88
0.0%
-
South Gate Trans
$
32.98
77.6%
25.58
Commerce
$
39.00
22.4%
8.75
PH Greenwaste
$
11.00
0.0%
-
100%
34.33
New
Weight*
Effective Rate
Puente Landfill
$
22.65
0.0%
-
South Gate Trans
$
34.77
55.0%
19.11
Commerce
$
42.00
45.0%
18.92
PH Greenwaste
$
12.10
0.0%
-
100%
38.03
Per YTD 2005 Tonnage
" Adjusted
for Commerce Burner activity
%change
Jun-04
May-05
CPI
193.7
200.7
3.6%
Residential
Change in Effective Rate
Total 3.6%
Old New %change
30.22 $ 31.43 4.0%
• 0
Residential Rate
Weighted
CPI
Adjustment
Value
Increase
Percentage
Consumer Price Index
0.7
X
3.6%
= 2.5%
Disposal Tipping Fee
0.3
X
4.0% =
1.2%
Increase in Residential Rates
3.7%
Commercial
Old
New
%change
Change in Effective Rate
34.33
36.40
6.0%
Commercial Rate
Weighted
CPI
Adjustment
Value
Increase
Percentage
Consumer Price Index
0.7
X
3.6%
= 2.5%
Disposal Tipping Fee
0.3
X
6.0%
= 1.8%
Increase in Commercial Rates
4.3%
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