CC – Item 4C – Staff Report Request from Consolidated Disposal Services E M
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stat f eP ort
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER ��
DATE: SEPTEMBER 17, 1998
RE: REQUEST FROM CONSOLIDATED DISPOSAL SERVICES, INC. FOR ANNUAL
ADJUSTMENT OF RESIDENTIAL AND COMMERCIAL REFUSE RATES
Consolidated Disposal Services, Inc. (CDS) has requested an increase in residential and commercial
refuse rates. The request is in accordance with the Second Amendment to the City's franchise
agreement with CDS, as approved by the City Council in June 1996.
The Agreement specifies that the contractor is entitled to an annual rate adjustment pursuant to the
formula stated in the Second Amendment (attached). The increase requested by the contractor is
based on the rate-of-change indicated in the June 1998 Consumer Price Index (CPI) report (70%) and
the annual adjustment of landfill tipping fees established for County landfills by the Sanitation
Districts of Los Angeles County (30%). The rate-of-change according to the June 1998 CPI report
is 1.8% for the Los Angeles-Anaheim-Riverside area. The basic waste disposal rate established by
the County Sanitation Districts for the Puente Hills Landfill increased from$1757 to $17.86 per ton.
The rate for Green Waste disposal at the Puente Hills Landfill increased from $9.20 to $11.50 per ton
and the tipping fee at the South Gate Transfer Station increased from $17.57 to S29.21 per ton.
Consolidate Disposal uses, both, the Puente Hills Landfill and South Gate Transfer Station for
disposal of all solid waste and greenwaste collected in Rosemead. The company attempts to use the
Puente Hills facility whenever possible. However, the landfill generally accepts the maximum
tonnage allowed by mid day,thus forcing refuse haulers to utilize other facilities, such as the County
Transfer Station in South Gate. In years past, that has not been significant to Rosemead because the
tipping fees were similar. This year, however,the County Sanitation District raised the South Gate
Transfer Station fee by nearly $12.00 per ton. In addition, the greenwaste tipping fee was increased
by more than $2.00 per ton. Accordingly, CDS caculates the following tonnages disposed at the
Puente Hills Landfill, which includes greenwaste, and the South Gate Transfer Station:
COUNCIL AGENDA
SEP 2211999
ITEM No. -rig
J
1998/99 CDS Rate Adjustment
September 17, 1998
Page 2.
Old Rate New Rate %Change Total Disposed Total Increase
Puente Hills Landfill $17.57 $17.86 1.65% .57 0.94%
Greenwaste $17.57 $29.21 66.25% .37 24.51%
South Gate Transfer Station $9.20 $1 1.50 25.00% .06 1.50%
Total 26.95%
Based on those totals, the formula for an increase in the residential and commercial refuse rates is as
follows:
CPI .70 x 1.8% 1.2%
+ Tipping Fees .30 x 27% 8.1%
Rate Adjustment 9.3%
Current Rate $8.85
x % of Rate Adjustment 9.3%
Amount of Increase .823
Current Rate $8.85
+ Amount of Increase for 95/96 $ .82
1998/99 Residential Refuse Rate $9.67
It should be noted that these rates do not include the$.76 per month residential refuse surcharge that
went into effect in April 1993 to help defray the litigation and settlement costs associated with the
Transportation Leasing lawsuit. The actual cost to residents, including that fee would be $ 10.43 per
month. The net increase on residential refuse bill would be $.82 per month per household.
The rates for commercial refuse collection services and other services specified in the Franchise
Agreement are detailed in"Attachment A." Attached also is a copy of the June 1998 CP1 report and
a copy of the Second Amendment to the City's franchise agreement with CDS.
RECOMMENDATION:
It is recommended that the City Council approve the request by Consolidated Disposal Services, Inc.
for a 9.3%adjustment in residential, commercial and industrial refuse rates effective October 1. 1998.
Attachments
cememo.cdsrts98 fet
SEP- 17-98 15 20 FROM : TAORMINA EXECUTIVE ID - 17142383309 PAGE 1/9
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City of Rosemead Rate Adjustment Request
1998-1999
Residential Rates:
Category Current New
Rate Rate
Single Family Dwelling - Residential Curbside (one 100 Gal Cart) $ 8.85 $ 9.67
Multiple Family Dwelling-Detached Units On A Single Lot: First Unit $ 8.B5 i $ 9.67
Each Additional Unit $ 7.14 $ 7.81
Multiple Family Units - Attached Units ( Apartments and Condos)
And Mobilhome Parks: First Unit $ 8.85 $ 9.67
Each Additional Unit $ 5.81 $ 6.35
Special Qualified Senior Citizen Hardship Rate / For Residential
Curbside Service $ 5.88 $ 6.43
Special Qualified Handicapped Citizen / Backyard Collection Rates
For Single Family Residences: $ 8.85 I $ 9.67
Additional 100 Gallon Cart $ 1.52 I $ 1.66
Special One-Time Pick-Up Cost For Pick-Up And Disposal Of
Appliances, Furniture And Bulky Items $ 11.28 ) $ 12.33
Residential - Special One-Time Drop-Off And Collection of A
3-Cubic Yard Bin L
Pick Up / Delivery Charge $ 45.14 $ 45-93
Each Dump $ 12.37 $ 15.70
Total $ 57.51 I $ 6 ).64
Residential - Special One-Time Drop-Off And Collection of A 10 to
40 Cubic Yard 'Roll-Off" Container $ 162.05 $ 177.15
Overweight 7 Ton Limit $ 29.35 I $ 37.26
Daily Rental After Seven Days Without A Dump $ 15.00 I $ 15.00
Dead Run $ 75.00 $ 75.00
SEP- 17-SB 15 : 21 FROM : TAORMINA EXECUTIVE IO: 1719236330S FALL 2/9
Commercial Rates
3 Cubic Yard Bins
CURRENT RATE NEW RATE
Without Without
Forklift Forklift Forklift Forklift
1 Day P/U 64,23 70.65 1 Day P/U 70.21 77.23
2 Day P/U 97.49 107.22 2 Day P/U 106.57 117.21
3 Day P/U 132.27 145.48 3 Day P/U 144.59 159.031
4 Day P/U 167.29 184.01 4 Day P/U 182.87 201.151
5 Day P/U 206.68 227.35 5 Day P/U 225.93 248.53'
6 Day P/U 236.75 260.44 6 Day P/U 258.80 284.701
CURRENT RATE NEW RATE
Without Without
Forklift Forklrft Forklift Forklift
1 Day P/U 43.22 47.54 1 Day P/U 47.25 51.97
Category Current 1 New
Rate Rate
Commercial - One-Time Drop-Off And Collection Of A 3-Cubic Yard Bin
Pick Up / Delivery Charge $ 56.90 $ 57.90
Each Dump $ 21 .29 $ 27.03
Total $ 78.19 I $ 84.93
Commercial - Special One-Time Drop-Off And Collection of A 10 to
40 Cubic Yard "Roll-Off Container $ 251.33 $ 27474
Overweight 7 Ton Limit $ 29.35 $ 37.26
Daily Rental After Seven Day Without A Dump $ 15.00 i $ 16.00
Dead Run $ 75.00 I $ 75.00
Commercial - Special One-Time Drop-Off And Collection Of A 30
Cubic Yard Compactor Container $ 332.92 I $ 363.93
Overweight 9 Ton Limit $ 29.35 I $ 37.26
Daily 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 $ 43.73 1 $ 47.80
SEP- 17-99 16 : 39 FROM: TAORMINA EXECUTIVE 10 : 17192393309 PAGE 1/2
Aug_ July June May April Total
Total 3730 4990 3740 3669 3645 19774
Greenwaste 242 218 248 255 201 1164
Puente Hills 2260 2620 2590 2352 2531 12353
Puente % of total 60.6% 52.5% 69.3% 64.1% 69.4% 63%
Green % of total 6.5% 4.4% 6.6% 7.0% 5 5% 6%
Puente less green 54.1% 48.1% 62.6% 57.2% 63.9% 57%
Weighted Cost Adjustment
Value Increase Percentage
Consumer Price Index 0.7 X 1.8% = 1.2%
Disposal Tipping Fee 0.3 X 27.0% = 8.1%
9.3%
Tonnage Old New %change Weight Totallncreasa
Puente Landfill $ 17.57 $ 17.86 1.65% 0.57 0.94%
South Gate Trans $ 17.57 $ 29.21 66.25% 0.37 24.51%
Greenwaste $ 9.20 $ 11.50 25.00% 0.06 1.50%
26.95%
Jun-97 Jun-98 %change
CPI 159.4 162.2 1.6%
SECOND AMENDMENT TO
EXCLUSIVE REFUSE COLLECTION AND RECYLCING
FRANCHISE AGREEMENT
This Agreement made and entered into this 25th day of June, 1996 by and between the
CITY OR ROSEMEAD, a municipal corporation, hereinafter referred to as "City and
CONSOLIDATED DISPOSAL SERVICE. INC. hereinafter referred to as "Contractor" hereby
amends that certain agreement made and entered into effective August 1, 1991 and amended
effective January 11, 1994 between the parties, hereinafter referred to as `Agreement".
NOW THEREFORE, the City and the Contractor agree as follows:
1. The second paragraph of the Agreement is hereby revised to read as follows:
The City and Contractor agree each with the other that Contractor shall
have sole right to collect, haul and dispose of all refuse and conduct a
comprehensive recycling program in the City of Rosemead for a term
commencing August I. 1996 and expiring July 31, 2001, provided however, that
commencing August 1, 1997 and every year thereafter, automatic one year
extensions shall be applied to said Agreement so that the term of this Agreement
shall thereafter remain at a constant five years. subject to the rights of the parties
to terminate the Agreement set forth in paragraph P.
2. Paragraph F - Collection Rates and Billing is hereby revised to read as follows:
F. COLLECTION RATES AND BILLING
1. The City and Contractor, as part of this Agreement, fix and determine uniform
rates that shall be charged by the Contractor for the collection and removal of
refuse. The rates thus fixed and determined shall remain in effect for the period
prescribed or until changed pursuant to the provisions hereof. The Contractor
shall not charge or collect any fees or rates other than the fees or rates thus fixed
and determined.
2. The City Council shall, not more frequently than once per year, authorize a rate
adjustment by application of the following formula and procedure to then current
rates:
1
The total rate paid by customers is comprised of two components:
A. Disposal Cost. The disposal cost component consists of tipping fees paid to
and established by operators of landfills. The Contractor has no control over the
tipping rates established by the County Sanitation District or private landfill
operators.
B. Collection Cost. The collection cost component consists of the Contractor's
costs for the collection and hauling of waste.
Collection Cost rate freeze. Contractor agrees that there will be no increase in the
collection cost component for residential customers effective prior to August 1,
1997. Except for the rate freeze on the collection cost component for residential
customers, the following rate adjustment formula shall apply:
Contractor shall be entitled to rate adjustments. effective on the anniversary date
of the franchise (August I) based upon the following formula:
.70 x increase in Consumer Price Index, All items, 1982-84= 100
(Los Angeles-Anaheim-Riverside) from the base month
(commencing June, 1991) to the following year's comparison
month (June, 1992, June 1993, etc.) plus .30 x the percentage
change in tipping fees to arrive at the percentage adjustment to be
applied to all rates herein authorized.
Allowable adjustments, based upon tipping fees, shall be based upon the rates as
established by the Los Angeles County Sanitation District.
Example:
FACTOR %CHANGE %OVERALL COSTS TOTALS
CPI 4.7% x.70 3.29
DISPOSAL 10.00% x.30 3.00
Adjustment percentage 6.29
City and Contractor agree that the disposal cost component has been increasing as
a percentage of the overall costs of waste removal. If the Contractor's disposal
costs continue to escalate as a portion of the overall cost, Contractor may apply to
the City Council to increase the percentage of rate adjustment, currently 30%,
assigned to disposal costs. Upon the commencement of commercial Material
SEP- 17-99 19 '. 37 FROM '. TAORMINA EXECUTIVE ID '. 17192383309 PACE 2/4
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...ewe r
COUNTY SANITATION DISTRICTS
OF LOS ANGELES COUNTY
1955 Workman MW Rood,Whinier CA 90601.1400'
Mgilind Address:P.O. Box 4998 Whittler,CA906074998 CHARLES W. CARRY
rel•plinne: (562)699-7411,FAX: (5621 6995492 Chid Engineer ond'Genem;Manager '
July 9, 1998 -
File:31R-50.10
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Dear Solid Waste Facility:Cnatnmer:
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New Rifts for Solid Waste Disposal Facilities
Ibis isto advise you of new rates to be charged at the Puente Hills and Spadra Landfills,effective
'August l7, 1998. • - - -
' The municipal solid waste mn
mics at the Puente Hills and Spadra Landfills will increase$0,29hoto •
fund use of out of-County landfill capacity for solid waste from the Sanitation Districts'South GateTransf.',.
Station.Diverting the ttansfei stationwaste wilt benefit the users of the Puente Hills and SpadtnLmdfills..
The iucreaseis comprised of$0.2S/tpnfor theaut-of-Couaty capacity and S0.04Aoe for the County's '
business license tax. The minimum,hard-to-handlc,tires,and special handling rates at these two faciliti
will include related increases. the rates at the South Gale Transfer Station and the'Scholl Canyon.and'
Calabasas Landfills will not change
• In addition, the-green waste.tipping fees at the Puente Hills and Spada Landfills will'increase '
S2.00/ton, plus the County's tax,to$11.50/ton,cfTectwc August 17, 1998. Thee;two sites ire near their -
- capacity to recycle green waste as dailycover,and the upcoming closure of the Spadra Landfillwillreduec '
• that capapity. In order to continue to accommodate all of the segregated green waste,the Sanitation Districts . .
are arranging for the transport of green waste to offsite composting facilities. Offsite composting is more. • .• . •
costly than recycling green waste M daily cover,and it is necessary to increase the green waste tipping fcc
A copy of the new rate schedule is enclosed. Should you have any questions regard'inglhe rates, '
please contact M .Lsry Rising of this office. .
Vey truly yours,
•
Stephen R.Megan),
Solid Waste Management Department .
. SRM:Ir
Enclosure - , •
HFH- 17-S9 14 37 FROM -. TAORMINA EXECUTIVE ID 17142303309 PACE 3/9
CQUMTY AAN_ , 14N Dist ea { - e� , • A 1
S Snu , O ' aL A• : OLTnwA.c B. at..abY : . • . • S.a1 AL.FA6I-aura
£PFF-C77VE4yCVCT'17l99Bu,w "
SPAi1RA LANbI7LL PomcmaniPa EAU
Municipal Solid end Inert Waste S 17.86/tort
Hard-to-Handle Bulky Irapa . 24.79hoi,
Tues - 45AOhan
Special Handbag 40.B6/mn-
Mmapum Charge 16.75 perlbed
Pull-Offs . .2128 each
Segregated Uncontaminated Green Wase '1 i.50hon
PUENTE 111.4.5 LANDFILL Whinieralm
Mnmc , .Solid*Oa Inert Wass. $ 17.Bfihon
Hard-m-Handb Bulky leas 24.I9/ma
Tire .45.46/mo
Special Handling - 40.86/ma
Minimum Charg9 . 16.75 per load
Pull-Offs 21.211 cacti
Segregated Uncontaminated Gran Wave
SOUTH GAYE:TRANSFER STATION South Gate 0)
Municipal Solid and Inert Wave -r $29.21hon
Bard-to-Handle Bulky Items ":34.71ttoa
Minimum Charge 1 16.50 per load
'SCHOCti CANYON LANnFILL.GIwdale°'Ol
Municipal Solid and Inert Waste $27.I3/ton.
Hard-tr.Hnpsie Bulky Items 33,45hon
Tires . - . 47_25/ton
Special Handling 40.64hnn
Minimune Chargd 26,50 pa load
Pull-Offs' 2A,45'cech -
Segregated Ubcoomminatcd Or Waste Iz.Gshm
CALABASAS LANDFILL Agoura com
Municipal Solid end Inert Wast S 2530hm
Herd-to-Handle Bulky Rens 31.63hoo
Tim . 45.43hoa
Special Handling 34.66hon
Minimum Charge - 24.00 pc load
25.88 each
SegregatedUncontantlnated Green Wattc 12.65/ton
CQMMERCE REFUSE TO ENERGY EACELIEE.,Commerce w
Refuse - - $33.00@w
MinimumCharge 21-QOperload . . .
Documentation Destructbn •33.00/ton plus
435.0 l pa load
• IMO .S t ' O : ts t •J1. :.:.i Lnag Beachm .
Municipal Solid and inert Waste(I-ton mhn etw)
Uncovered Loads Capable of Producing Lieu-Except Cernmecce and SFflY.$4.60hon surcharge;$4.60 minimum
Uncovered Loads Capeblt of Ptpducing Litter-Commerce-$4ROkon Recharge;$4.00 minimum
Nov-manifested Tire brads-Except South Gate,Commerce and SURF-$4.60hon surcharge;$4.60 minimum
(1) All rates excluding pull offs and grewwaste rates include the following fees:
Oalifarnia Integrated Solid Wad Management Feer $ 1.34!too
Los Angelo County Solid Waste Mamp:mentIce:
Los Angeles County Dept of Health-Services Regulatory Service Fee -S 0;14/tan •
(7)MI rates and surcharges include the following Los Aageld CWnty Betas License Taxes: •
Disponi Facility- I d%of gross receipts;occluding State and local fear gad taxer
Waste Depositor S'Q.25hon.(Does not apply to pull-offs,groat waste,and surcharges.)
(3)Mt rats and suicbarget include the City of Glendale-Scholl Omyoaci Landfill Assessment:
15%of gross receipts. ,(Vehicles owned andoperaled by the City Of Glendale are exempt.). ' •
(4)Rates effective March 2, 1998-
(5)Ratc effective July t,1998;' -
SEP- 17-9B 14 38 FROM: TAORMINA EXECUTIVE ID 17192383308 PAGE 4/1
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