CC SR 20170606 03 - EDCO Rate AdjustmentCITY OF kbok RANCHO PALOS VFRDES
PUBLIC HEARING
Date: June 6, 2017
Subject: Consideration and Possible recommendation to approve EDCO's
Residential Solid Waste and Recycling rate increase request for FY 17-18
Subject Property: Citywide
1. Report of Notice Given: City Clerk
2. Request for Staff Report: Mayor Campbell
3. Staff Report & Recommendation: Senior Administrative Analyst Ramezani
4. Council Questions of Staff (factual only, no opinions):
5. Declare the Hearing Open: Mayor Campbell
6. Public Testimony: Mayor Campbell invites brief comments from the public.
Appellant: N/A
Applicant: N/A
7. Council Questions of speakers — (factual only):
8. Rebuttal: N/A
9. Declare Hearing Closed: Mayor Campbell
10. Council Deliberation: Questions of staff in response to testimony and deliberation.
11. Council Action:
1
RANCHO PALOS VERDES CITY COUNCIL
MEETING DATE: 06/06/2017
AGENDA REPORT AGENDA HEADING: Public Hearing
AGENDA DESCRIPTION:
Consideration and possible recommendation to approve EDCO's Residential Solid
Waste and Recycling rate increase request for FY 17-18
RECOMMENDED ACTION:
1) Review and approve EDCO's Residential Solid Waste and Recycling rate increase
request of 2.93% for FY 17-18.
FISCAL IMPACT: If approved by City Council, the City's annual Collector Fee and
Environmental Programs Fee would increase by 2.93%.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Lauren Ramezani, Senior Administrative Analyst
REVIEWED BY: Terry Rodrigue, P.E., Interim Director of Public Works
APPROVED BY: Doug Willmore, City Manager r"11
ATTACHED SUPPORTING DOCUMENTS:
A. Amendment to the Agreement (minus street sweeping section) between
City of Rancho Palos Verdes and EDCO Disposal Corporation for
Residential Solid Waste Management Services (page A-1)
B. Current FY 16-17 and Proposed FY 17-18 Rates (page B-1)
C. Rate Adjustment Formula, Methodology, Table 5-A (page C-1)
D. Collector and Environmental Programs Fees, and Recycling Rebate/Credit
(page D-1)
BACKGROUND AND DISCUSSION:
The City has had an exclusive residential solid waste and recycling agreement with
EDCO Disposal Corporation (EDCO) since July 1, 2010. This agreement consisted of a
seven-year base period, 7/1/2010 to 6/30/2017, plus an extension option of up to 36
months. The Agreement was amended on June 30, 2015, and the contract was
extended to June 30, 2020. It also included seven (7), one-year options to extend based
on mutual consent (FY20-21 to FY26-27). In 2015, as part of the contract extension re-
negotiation, EDCO waived their eligible 4.2% rate adjustment request for FY 15-16.
In November 2016, the City went through a Proposition 218 public notification, mailing
and hearing process. At the November 15, 2016, hearing, City Council approved a five
2
year future Rate Adjustment Methodology (RAM) which was included in the contract. The
FY 16-17 rate increase was in accordance with the RAM. The new and prolonged Prop
218 noticing requirement lead to a six month rate implementation delay therefore the
new rates became effective January 1, 2017, rather than the contractual July 1, 2016.
Therefore, the FY 16-17 rate increase of 1.3% was adjusted temporarily to 1.95% (the
actual 1.3% rate increase plus a 0.65% [50% representing the 6 months delay] totaling
1.95%).
Tonight's FY 17-18 rate adjustment request before the Council is voluntary, and pursuant
to a public hearing in the interest of transparency. Notices of this public hearing were
published in the Daily Breeze on May 26 and June 1, 2017.
RATE ADJUSTMENT REQUEST: EDCO is permitted annual rate adjustments based on
the RAM criteria as outlined in the Agreement. This RAM includes annual changes to
national published price indices and solid waste disposal facilities' gate rates. The
formula is found in Section 6.4 and Exhibits 5A, 5B, and 5C of the Agreement, as
amended (Attachments A and C). In March 2017 in accordance with the adjustment
formula in the Agreement, EDCO requested a rate adjustment of 3.3% for FY 17-18, with
the increase effective July 1, 2017. Prop 218 requires that when any new rate is
approved, at least 30 days should pass before the new rates can be implemented. This
public hearing date to approve new rates is on June 6t", therefore, the effective date of
new rates, if approved, is after July 6t". As a result the FY 17-18 increase will be effective
on August 1St rather than July 1St, a one-month FY 17-18 rate implementation delay.
The net rate increase for FY 17-18 will be 2.93%. The 2.93% is calculated by adjusting
for the 1 -month rate implementation delay for this year (adding 0.28%, for the August
versus July billing), and correcting/reversing the FY16-17 temporary rate adjustment for
the 6 -month delay (deducting 0.65°/x, for the January versus July billing) due to Prop 218
notification requirements [3.3%+0.28%-0.65%= 2.93%]. Current and proposed new rates
are provided as Attachment B. There are no additional costs or surcharges added to
EDCO's requested rate increase.
Staff and Charles Abbott Associates, Inc. (CAA), the City's AB 939 consultant, reviewed
the data and calculations provided by EDCO, and found them accurate and per the
Agreement. The temporary 0.28% adjustment will be corrected/reversed during the next,
FY 18-19, rate adjustment process.
SOLID WASTE SUBCOMMITTEE (Subcommittee): The City Council Solid Waste
Subcommittee (comprised of Councilmembers Brooks and Misetich), Staff and senior
EDCO representatives met on Monday, May 15, 2017, and reviewed EDCO's rate
adjustment request, the summary of the proposed rates, and its adherence to the rate
adjustment formula as set forth in EDCO's Agreement. The Subcommittee
recommended approval of this rate adjustment request to the full Council.
9
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the Council's consideration:
1. Do not approve the fee increase. However, this action would be contrary to
the terms of the Agreement.
2. Take other action as deemed appropriate by the Council.
11
AMENDMENT TO AGREEMENT BETWEEN CITY OF RANCHO PALOS VERDES
AND EDCO DISPOSAL CORPORATION FOR RESIDENTIAL SOLID WASTE
MANAGEMENT SERVICES
THIS AMENDMENT TO EDCO AGREEMENT FO INTEGRATED SOLID WASTE
MANAGEMENT SERVICES ("Amendment") dated as of a , 2015, is made and
entered into by and between CITY OF RANCHO PALOS V ES, a California municipal
corporation ("City"), and EDCO DISPOSAL CORPORATI , a California corporation
("Contractor"). Collectively, City and Contractor are referred to herein as the "Parties".
RECITALS:
A. City and Contractor entered into that certain Agreement Between City of Rancho
Palos Verdes and EDCO Disposal Corporation for Residential Solid Waste Management
Services Service dated on or about November 24, 2009 ("EDCO Agreement"). All capitalized
terms not otherwise defined in this Amendment shall have the meanings specified in the EDCO
Agreement.
B. Pursuant to the EDCO Agreement, Contractor was granted the exclusive right and
privilege to provide Solid Waste and Recyclable Materials Handling Services at Residential
Premises within Service Area 1.
C. City and Universal Waste Systems, Inc., a California corporation ("UWS")
entered into that certain Agreement Between City of Rancho Palos Verdes and Universal Waste
Systems Inc. for Residential Solid Waste Management Services dated on or about May 5, 2009
("UWS Agreement"). Pursuant to the UWS Agreement, UWS was granted the exclusive right
and privilege to provide Solid Waste and Recyclable Materials Handling Services at Residential
Premises within Service Area 2.
D. Contractor and UWS have informed City that they have entered into an agreement
whereby Contractor would acquire all rights of UWS under the UWS Agreement, and have
requested that City approve the assignment of the UWS Agreement to Contractor.
E. Contractor has requested an extension of the term of the EDCO Agreement, and
the Parties have mutually agreed upon the conditions for such an extension.
F. As an inducement to City to extend the term of the EDCO Agreement and
approve the assignment of the UWS Agreement, Contractor has offered to freeze all rates in both
Service Area 1 and Service Area 2 until July 1, 2016,
G. Contractor and City desire to amend the EDCO Agreement to extend the term and
make other changes, approve the assignment of the UWS Agreement to Contractor, and
incorporate Service Area 2.
NOW, THEREFORE, in consideration of the mutual promises contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, City and Contractor do hereby agree as follows:
R6876-0333\1842117v3.doc -1-
A-1
1. The foregoing Recitals are incorporated herein this reference.
2. This Amendment shall become effective upon the occurrence of the following
conditions precedent:
(a) Approval of this Amendment by the City Council of the City of Rancho
Palos Verdes;
(b) Receipt by City of evidence reasonably satisfactory to the City Attorney
that UWS has assigned its rights and obligations under the UWS
Agreement to Contractor, and that Contractor has assumed those rights
and obligations; and
(c) Receipt by City of evidence reasonably satisfactory to the City Manager
that the insurance and performance security provided by EDCO pursuant
to Sections 9.4, 9.5, and 9.6 of the EDCO Agreement are current, and
apply to both Service Area 1 and Service Area 2.
3. City hereby approves the assignment of the UWS Agreement to Contractor,
subject to the terms and conditions of this Amendment. The transfer fee and cost
reimbursement required by Section 12.5 of the UWS Agreement are hereby
waived.
4. The UWS Agreement is hereby terminated, and is of no further force or effect.
The EDCO Agreement is hereby amended to include Service Area 2. All
references to "Service Area 1" in the EDCO Agreement are hereby revised to read
"Service Area 1 and Service Area 2".
5. A map depicting Service Area 2 is attached hereto, and is hereby added to the
EDCO Agreement as Exhibit 8.
6. Contractor shall commence Solid Waste and Recyclable Materials Handling
Services in Service Area 2 on July 1, 2015. Contractor shall provide curbside
collection service, in accordance with Section 4.2.1 of the EDCO Agreement, in
the areas depicted as Area A and Area B on Exhibit 8. Contractor shall provide
manual backyard Collection, in accordance with Sections 4.14, 4.16, and 4.17 of
the EDCO Agreement, in the areas depicted as Area C and Area D on Exhibit 8.
7. Article 1 of the EDCO Agreement is hereby revised to add the definition of
Service Area 2, as follows:
"1.62.5 Service Area 2
"Service Area 2" means that area of the City identified in Exhibit 8 of this
Agreement."
8. Section 2.4 of the EDCO Agreement is hereby revised to read as follows:
R6876-0333\1842117v3.doc -2-
A-2
"2.4 Term of Agreement
The term of this Agreement shall commence on July 1, 2015 and expire June 30,
2020 (the "Term"), subject to extension or termination as herein provided.
Commencing January 1, 2020 and every year thereafter for a maximum of seven
renewals, automatic one year extensions shall be applied to the Term so that the
Term of the Agreement shall remain between six (6) months and eighteen (18)
months. If all of the automatic extensions take place, the Term shall expire on
June 30, 2027.
Commencing January 1, 2020, should either Parry desire that the automatic one
year renewal and extension provision be terminated, such Party may give the
other Party written notice of such termination within sixty (60) days prior to
January 1 of any year of the Agreement. Such notice will terminate the automatic
one year renewal and extension provision, and the Agreement shall remain in
effect for the balance of the term then outstanding. By way of example only: the
Term shall be extended by one year commencing July 1, 2020, unless within sixty
(60) days prior to January 1, 2020, either Party provides notice to the other Party
terminating the extension."
9. Section 2.5 of the EDCO Agreement is hereby deleted.
10. For the period commencing July 1, 2015, the Collector Fee shall be $135,450.00
per quarter. Thereafter, the Collector Fee shall be adjusted as provided in Section
3.2.1 of the EDCO Agreement. The Parties acknowledge that this amount reflects
the addition of Service Area 2 to the EDCO Agreement.
11. For the period commencing July 1, 2015, the Environmental Programs Fee shall
be $34,210.00 per quarter. Thereafter, the Environmental Programs Fee shall be
adjusted as provided in Section 3.2.2 of the EDCO Agreement. The Parties
acknowledge that this amount reflects the addition of Service Area 2 to the EDCO
Agreement.
12. For the period commencing July 1, 2015, the Recycling Rebate shall be
$74,000.00 per quarter. Thereafter, the Recycling Rebate shall be adjusted as
provided in Section 3.2.3 of the EDCO Agreement. The Parties acknowledge that
this amount reflects the addition of Service Area 2 to the EDCO Agreement.
13. Section 4.4.5 (Organics Recycling Plan) is added to Section 4.4 of the EDCO
Agreement, as follows:
"4.4.5 Organics Recycling Plan
Contractor shall provide City a plan for the implementation of organics waste
recycling at Residential Premises for City's evaluation and consideration no later
than June 30, 2019. City shall be under no obligation to implement the plan and
retains the right to modify or consider implementation at a later date.
R6876-0333\1842117v3.doc -3-
A-3
At a minimum, Contractor shall identify the following elements for City
consideration: projected participation rates among generators, projected recovery
rates at processing facility, increased overall diversion benefit to City, public
education component, program sustainability factors, financial implications and
proposed implementation schedule. Contractor shall take into account any change
of law that would impact the Plan."
14. All references to "Cart" in Subsection 4.6.4.2 of the EDCO Agreement are hereby
revised to read "Cart and Contractor -provided manual service Container".
15. Article 4 of the EDCO Agreement is hereby revised to add the following sections,
all of which apply only to Service Area 2:
"4.14 Manual Backyard Refuse Collection
Contractor shall Collect Refuse from Customer -provided Containers once per
week from Single -Family Customers and Multi -Family Customers without Bin
service in the areas depicted as Area C and Area D on the map attached hereto as
Exhibit 8. The Collection location for manual service shall be Customer's back or
side yard, or other location that is not visible from the street. These Customers
shall be "Manual Collection Customers." The number of Containers is not
limited.
4.15 Portuguese Bend Beach Club Litter Containers
Contractor shall Collect and Dispose of Solid Waste and Recyclables from litter
containers placed at the beach property for no more than the maximum rate
identified in the approved rate schedule. Under this EDCO Agreement,
Contractor is required to provide this Collection service if requested, but does not
have the exclusive right to provide this service, and the Portuguese Bend Beach
Club may negotiate with other haulers for this service.
4.16 Recyclable Materials Collection for Manual Collection Customers
Contractor shall Collect Recyclable Materials from Contractor -provided 32 -gallon
Containers with unattached lids and without wheels, placed at the same Collection
location as Customer -provided Refuse Containers, once per week from Manual
Collection Customers. Recyclable Materials Collected shall be the same as those
Collected from Cart Customers. Contractor shall provide a sufficient number of
Containers to each Customer to meet each Customer's individual needs.
4.17 Green Waste Collection for Manual Collection Customers
Contractor shall Collect Green Waste from Contractor -provided 32 -gallon
wheeled Containers with unattached lids, as well as unlimited Green Waste tied
and bundled as set forth in Section 4.4.1 above, placed at the same Collection
location as Customer -provided Refuse Containers, once per week from Manual
R6876-0333\1842117v3.doc -4-
Collection Customers. Contractor shall provide a sufficient number of Containers
to each Customer to meet each Customer's individual needs.
4.18 Brush Clearing Events
Contractor shall provide and service sufficient Roll -Off Boxes up to twice per
year to each homeowners' association for the purpose of brush clearing. Timing
and placement of Containers to be mutually agreed upon between Contractor and
each homeowners' association."
16. The maximum rates approved for the Rate Year commencing July 1, 2014 for
Service Area 1 and Service Area 2 are attached hereto as Exhibits A and B,
respectively.
Notwithstanding Article 6 of the EDCO Agreement and Article 6 of the UWS
Agreement, Contractor will freeze the City approved July 1, 2014 rates through
June 30, 2016 for both Service Area 1 and Service Area 2. In calculating the July
1, 2016 rate adjustment formula, there will be no retroactive recovery of the
freeze. The July 1, 2016 rate adjustments will be based only on the most recent
twelve month indexes (i.e. January 1, 2015 to December 31, 2015) available at
that time.
17. Paragraphs (2) and (3) of Section 6.4.2 of the EDCO Agreement are hereby
revised to read as follows:
"(2) Annual increase in total disposal component (including Green Waste) in
any one year shall be limited to no more than 8%, with non -permitted increases
permitted to be applied to any subsequent year's increase to the extent the annual
increase does not exceed 8%.
(3) Annual increase in disposal component exclusive of disposal at the Orange
County Landfill System is limited to no more than 8%, with non -permitted
increases permitted to be applied to any subsequent year's increase to the extent
the annual increase does not exceed 8%."
18. Section 6.4.3 of the EDCO Agreement is hereby revised to read as follows:
116.4.3 Rate Adjustment Steps
All rates will be adjusted using the same methodology and cost component
weightings. See Exhibits 5A, 5B and 5C.
Exhibit 5A, Step One - Calculate Percentage Change in Indices. Calculate the
percentage increase or decrease in each index listed in Section 6.4.2. The increase
or decrease in the published indices for fuel, equipment and all other (CPI, less
food and energy) will be the change in the average annual published index
between the calendar year ended the December prior to the Rate Year anniversary
date and prior calendar year.
R6876-0333\1842117v3.doc -5-
A-5
Example disposal component calculations are included in Exhibit 5B and Exhibit
5C:
Exhibit 513, Step 1: Determine the average disposal cost per ton for non -Orange
County Landfill disposal.
Exhibit 513, Step 2: Determine whether the change in the cost per ton of non -
Orange County Landfill disposal exceeds the maximum allowable increase of 8%.
If so, reduce the new non -Orange County Landfill disposal index to reflect no
more than an 8% increase.
Exhibit 513, Step 3: Weight the cost at the Orange County Landfill System and
non -Orange County Landfill cost based upon percentage of tonnage directed to
each (subject to a 50% minimum to be assumed directed to the Orange County
Landfill System).
Exhibit 513, Step 4: Determine whether the change in the total Disposal
Component exceeds the maximum allowable overall increase 8%. If so, reduce
the new disposal index to reflect no more than an 8% increase. The resulting
Average Cost Per Ton in Column P on Row 12 of Exhibit 5B will be the New
Index Value used in Exhibit 5A.
There may be multiple landfills used, and therefore multiple gate rates for which
to calculate the percentage change, which shall be weighted by the number of tons
disposed at each landfill. The change in Landfill and Green Waste Disposal
indices shall be based upon the change between the per ton gate rates as of the
effective date of the rate adjustment and 12 months prior. For example, the rate
adjustment effective July 1, 2011 will reflect the change in the gate rate from. July
1, 2010 to July 1, 2011. There shall be no adjustment for changes in disposal rates
prior to July 1, 2010. See Exhibit 5C to calculate the July 1, 2010 disposal
component baseline for the July 1, 2011 rate adjustment.
Exhibit 5A, Step Two
i. Component Weightings: The first rate adjustment cost components as a
percentage of service component costs and of total costs are provided in
Section 6.4.2 above, with subsequent components calculated in Step Four of the
rate adjustment example in Exhibit 5A. For Exhibit 5A, Step Two of each
subsequent rate adjustment, use the cost components recalculated in Step Four
during the previous rate adjustment.
ii. Service Component. Multiply the percentage changes for each rate
adjustment service component by that component's weighting as a percentage of
the service component and add these resulting percentages together to get the
service component weighted change to the rates, subject to the service component
increase cap. The annual change to the service component, calculated on row 11
of Exhibit 5, is capped at no more than a four percent (4%) increase per year. If
the increase in any one year is higher than four percent (4%), the percentage
R6876-0333\1842117v3.doc -6-
w e
increase not permitted may be added to any subsequent year's increase to the
extent that a subsequent increase is below four percent (4%).
iii. Disposal Component.
The change in the disposal component is equal to the calculation on Row 5 of
Exhibit 5A, Column C.
iv. Combined Rate Adjustment. Multiply the permissible percentage changes
for the combined service component and the disposal component, as determined
on rows 13 and 14 in column G of the example rate adjustment calculation in
Exhibit 5A, by the cost component weightings for the service and disposal
components.
Exhibit 5A, Step Three - Multiply the total weighted percent change from Step
Two by the existing Customer rates to calculate the increase or decrease to the
maximum rates. Add the rate increase or decrease to the existing rates to derive
the newly adjusted rates.
Exhibit 5A, Step Four - Recalculate weightings for the following year based upon
these changes."
19. Section 6.4.4 of the EDCO Agreement is hereby revised to read as follows:
116.4.4 Government Fees
New or increased Federal, State or locally imposed per ton disposal fee
surcharges are excluded from the 8% per year disposal component increase caps."
20. Section 4.5.7 (Street Sweeping Contract Management) is hereby added to Section
4.5 of the EDCO Agreement, as follows:
"4.5.7 Street Sweeping Contract Management
Commencing July 1, 2015, or such later date as may be directed by City's
Director of Public Works, and for the term of this Agreement thereafter,
Contractor shall provide contract management services of City street sweeping
services in accordance with the current requirements specified by City at no
additional cost to City.
Street sweeping services shall be provided through a street sweeping service
provider engaged by City. In the event of (i) default of the street sweeping
contract that is not the result of the negligence or willful act of Contractor, and/or
(ii) termination of street sweeping services that is not the result of the negligence
or willful act of Contractor, such default or termination shall not be cause for
default and/or termination of this Agreement.
R6876-0333\1842117v3.doc -7-
A-7
Contractor shall initially provide contract management services under a street
sweeping agreement between City and Joe's Sweeping AKA Nationwide
Environmental Services, dated May 19, 2009, as amended by those certain First,
Second, and Third Amendments dated July 1, 2012, July 1, 2013, and July 1,
2014 (as amended the "Joe's Street Sweeping Agreement") until it's expiration, at
no additional cost to City. A copy of the Joe's Street Sweeping Agreement is
attached hereto as Exhibit C and incorporated herein by this reference.
Prior to expiration of the Joe's Street Sweeping Agreement, City shall select a
qualified street sweeping service provider to perform street sweeping services of
city streets and contract with such provider following the expiration of the Joe's
Street Sweeping Agreement. City shall assign the contract to the Contractor for
contract management. The Joe's Street Sweeping Agreement and any successor
agreement entered into by City and a street sweeping service provider, are
referred to herein as the "Street Sweeping Agreement".
Contractor shall ensure that street sweeping services are provided in accordance
with terms and conditions specified by City. Contractor shall be responsible for
all inquiries on street sweeping through its customer service call center and shall
ensure that all matters are promptly corrected to the satisfaction of City.
Contractor shall coordinate street sweeping services with City's Code
Enforcement Division to enforce parking regulations related to street sweeping
activities, as directed by City's Director of Public Works.
Contractor shall deliver an annual report to City on the number of linear miles
swept, amount of street sweeping debris collected and disposed, and other
pertinent statistics as may be required by the Director of Public Works.
Contractor shall be responsible for supervising the street sweeping service
provider to ensure the street sweeping service provider performs street sweeping
services to the highest level possible and properly disposes of street sweeping
debris in a lawful manner. Contractor shall ensure that all terms and provisions in
the Street Sweeping Agreement are maintained.
On or before the 10th day of each month, Contractor will invoice City for street
sweeping services performed during the preceding month by the street sweeping
service provider. Each invoice shall also itemize the additional street sweeping
services performed during the preceding month, by hour, and the actual costs
incurred for processing of collected sweepings and water. There shall be no
additional fees added by Contractor for contract management other than those
requested by the street sweeping service provider.
City shall pay each invoice within thirty (30) days after receipt, except such
amounts as City may in good faith dispute, which amounts City may withhold
until resolution of the dispute. Payment of any disputed amounts shall be made
within ten (10) days following resolution of the dispute.
R6876-0333\1842117v3.doc -8-
Contractor shall remit appropriate payment to the street sweeping service provider
in accordance with the terms of Street Sweeping Agreement."
21. No further Changes. Except as expressly modified by this Amendment, the
EDCO Agreement remains in full force and effect without modification or
impairment.
22. Counterparts. This Amendment may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which shall constitute one
and the same document.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date and year first above written.
CITY OF RANCHO PALOS VERDES,
a California municipal corporation
imj�,
ht,
ATTEST:
Carla Morreale, City Clerk
APPROVED AS TO FORM:
Richards, Watson & Gershon
Carol W. Lynch, aty Attorney
R6876-0333\1842117v3.doc -9-
Me
EDCO DISPOSAL CORPORATION.,
a California Corporation
Its: C o — G
By: Z
Its: 1, _' C
R6876-0333\1 842117v3.doc -10-
A-10
Exhibit 4 City of Rancho Palos Verdes - Area 1 EDCO
Rates Effective 7/1/2015 (No Change from 2014)
EDCO SINGLE-FAMILY RATES
Monthly Cart Service
Bin Rates
One each Refuse
Refuse Cart Size:
35 -gallon
64 -gallon
96 -gallon
Standard Service
$19.40
$24.97
$30.52
Additional Refuse Cart
$6.67
$8.90
$11.13
Additional Recycling Cart
Free
Free
Free
Additional Green Waste
Cart (above three)
$2.23
n/a
$4.45
Other Cart Rates and
Services Char ed in
$137.08
k$241.12
Backyard Service - per
$188.67
$6.86
Pup Service - per home
$284.55
$5.72
Backyard and Pu
compactor
$9.14
Senior Rate Reduction
$377.30
10%
Low -Income Rate
$569.06
5%
Annual Pa went Rate
5%
Additional Special
Overage Pickup for
Automated Cart
$222.72
$5.56
Additional Bulky Item
$354.53
$27.82
Cart Exchange after free-
com actor
$16.69
Cart Re-deliveryFee if
$445.44
$27.82
Re -Start Fee - after
$709.07
$16.69
Including all fees retained by, or paid to, City.
Monthil
Bin Rates
m ervice
Pickups
1 1
on iner >ze
Pickups
2
3
4
5
6
Extra
Pickups
2 -yard
$11.42
$120.53
$154.57
$171.59
$222.68
$237.30
$61.68
3- azd
$137.08
k$241.12
$154.61
$188.67
$222.72
$273.75
$284.55
$71.96
3 azd w
compactor
$309.23
$377.30
$445.42
$547.52
$569.06
$143.94
4 azd
$171.62
$222.72
$273.79
$333.57
$354.53
$82.25
4- ard w
com actor
1
$343.27 1
$445.44
1 $547.59 1
$664.86
$709.07
$166.73
6 -yard
1 $171.70 1
$230.32 1
$273.80
1 $324.89 1
$377.57
$394.73
$123.38
Recycling
bin cart
No charge
Other Bin Service Rates -
m ervice
Pickups
1 1
2
3
4
5
6
Locking Bin Service
$6.86
$9.14
$10.28
$11.42
$13.72
$14.85
Scout Vehicles
$28.56
$50.27
$71.96
$93.68
$115.38
$137.08
Bin Push -Out Service (35
feet or further
$47.99
$85.68
$117.66
$145.08
$177.07
$211.33
A-11
Exhibit 4 City of Rancho Palos Verdes - Area 1 EDCO
Rates Effective 7/1/2015 (No Change from 2014)
Additional Service
Rate Per Service
Charges
Per Month
Bin Cleaning Per Bin
$50.05
Bin Overage Clean-up
$22.24
(following one written
Additional Bulky Item
$27.82
pickups (in excess of three
Emergency Service Rates
$94.55
- one crew and one
Recycling Rebate
Rebate per Unit
(Fixed)
Per Month
Single Family
$1.58
Multi -Family
$1.58
Fees
Collector $506,065
Environmental $127,906
Recycling Rebate Fixed Note 1
Note 1: Rebated directly to Customers tttective 1/11LU1d
(No Change/ Rate adjusted per Section 3.2.3 only)
(No Change/ Rate adjusted per Section 3.2.3 only)
A-12
Exhibit 4 City of Rancho Palos Verdes - Area 2 UWS
FY 15-16 Effective 7/1/2015 (No Change from 2014)
Single -Family Maximum not to Exceed Rates
Monthly Manual Service Rates
Backyard Service for refuse, recycling, and green
$60.62
waste *- per home per month
Manure 32 -gal customer -provided can (per can per
$22.04
month)
Monthly Automated Cart Service Rates
One each Refuse, Recycling, and Green Waste Cart, rate based
upon Refuse Cart size:
Refuse Cart
35 -gallon
64 -gallon
96 -gallon
Size:
Standard
$19.40
$24.97
$30.52
Service, based
on refuse cart
size
Additional
$6.67
$8.90
$11.13
Refuse Cart
Additional
free
free
free
Recycling
Cart
Additional
$2.23
n/a
$4.45
Green Waste
Cart (over
1hra carts)
Other Cart Rates and Services (Charged in Addition to Monthly Cart
Service Rates)
Backyard Service - per home per month, all cart sizes
$6.62
Senior Rate Reduction
10%
Low -Income Rate Reduction
5%
Annual Payment Rate Reduction
5%
Additional Special Overage Pickup for Automated
$5.56
Cart Customers (in excess of two pickups per year),
per pickup
Additional Bulky Item pickups (in excess of three free
$27.82
pickups per dwelling unit per year), per item
Cart Exchange (after free -exchange period), per
$16.69
request
Cart Re -delivery Fee (if carts are pulled for non-
$27.82
payment, one charge for redelivery of all carts)
Re -Start Fee - after voluntary suspension of service, if
$16.69
carts have not been pulled, per re -start
C:\Users\awalsh\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.0utlook\GGHMZTLM\Copy of UWS- City of RPV 2015 same as 2014 final.xlsx / Rate Sheets
6/5/2015, 6:16 PM
1of2
A-13
Exhibit 4 City of Rancho Palos Verdes - Area 2 UWS
FY 15-16 Effective 7/1/2015 (No Change from 2014)
Multi -Family
FY 15-16 Effective 7/1/2015 (No Change from 2014)
Following are the not to exceed rates for July 1, 2015 through June 30, 2016:
Other Bin Service Rates - Per Month
Rate Per Service
No. Pickups per week
Monthly Bin Rates
1
2
3
Container
Size
5
6
No. Pickups per week
$7.84
$9.79
$11.16
1 2 3 4 5 6
Extra Pickups
2 -yard
$76.06
$106.03
$135.46 $150.63
$194.87
$224.56
$16.53
3 -yard
$105.83
$135.49
$165.22 $194.91
$240.55
$270.41
$27.56
4- and
1 $120.74
$150.38
$194.96 $240.59
$290.67
$336.80
$38.58
Manure 3-
and
$137.76
$27.56
Recycling
bin cart
feet or
No charge
Other Bin Service Rates - Per Month
Rate Per Service
No. Pickups per week
Bin Service
1
2
3
4
5
6
Locking Bin
$7.84
$9.79
$11.16
$12.54
$13.91
$15.29
Service
collection truck (Per Hr)
Scout Vehicles
$29.03
$49.85
$70.25
$90.85
$111.48
$132.10
Bin Push -Out
$44.04
$78.40
$105.85
$133.33
$160.81
$188.30
Service (35
feet or
rth r
Additional Service Charges
Rate Per Service
Portuguese Bend Beach Club - beach litter container
$2,204.13
collection per month (not to exceed)
$8,930
Bin Cleaning Per Bin
$27.56
Bin Overage Clean-up (following one written
$27.56
warning) Per Clean Up
Additional Bulky Item pickups (in excess of three free
$27.56
pickups per dwelling unit per year) Per Item
Emergency Service Rates - one crew and one
$93.67
collection truck (Per Hr)
Proposed Fees FY 15-16
Amount
Collector
$35,735
Environmental
$8,930
Recycling Rebate
$0
Rebate offered to customers as of 1/1/2013. No change.
C:\Users\awalsh\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.0utlook\GGHMZTLM\Copy of UWS- City of RPV 2015 same as 2014 final.xlsx / Rate Sheets
6/5/2015, 6:16 PM
2 of 2
A-14
rf • VIA 41E!
LLESTf
A,
�J �Qfj7 .. �•t
Map of UWS- Service Area 2
OR
VL
wIEY
DAM(
141
.yrA7uV `_
:1tIC
�t
/Oj1114E$E
POINT
Area
A Curbside Automated Service. Non -Gated Areas. No Changes.
:--c.M[arypllu
EXHIBIT04
Cf FAO u`S ,` ___ _ E �. A, �� '•
O'S �TEROES
RD
rAID[ �• �•• '�
11 ;L !•t E ° �� t
G OR �tr
"' vkA •.�, tow
l T= aaa. fi r �� ♦ iP jjw
Forrrsssf 4i •Z,` �g �� qP a
!1k
F
lf6P17U(!Q4 Bi•a �.� J I IW �
POINT
N
B Area Previously Designated as Manual Unlimited Backyard Service. Now Changing to Automated Curbside Service.
N
C Manual Unlimited Backyard Service. Gate Areas. No Changes.
W
D Manual Unlimited Backyard Service. Non -Gated Areas. No Changes.
S
E
c
DES
..+rt.,.•. tc[�v p�
�ypO rl. !rill: �
. •'i°v°Jlw. l� '��
P �
c9��!
A-15
M r1C
rq
<
IC,
••• t •"
r0
FRUS
p� r
CT -C CCL=
ryrM
Y't
MW
NE g�Vo
r ra
\ •,•
�
r'r�
: (FES
wrwr nawrr AL
umm�aE
VE0.0F d
(� �L--mli7 4kfFp S(Ar101
rolln MOM
OR
VL
wIEY
DAM(
141
.yrA7uV `_
:1tIC
�t
/Oj1114E$E
POINT
Area
A Curbside Automated Service. Non -Gated Areas. No Changes.
:--c.M[arypllu
EXHIBIT04
Cf FAO u`S ,` ___ _ E �. A, �� '•
O'S �TEROES
RD
rAID[ �• �•• '�
11 ;L !•t E ° �� t
G OR �tr
"' vkA •.�, tow
l T= aaa. fi r �� ♦ iP jjw
Forrrsssf 4i •Z,` �g �� qP a
!1k
F
lf6P17U(!Q4 Bi•a �.� J I IW �
POINT
N
B Area Previously Designated as Manual Unlimited Backyard Service. Now Changing to Automated Curbside Service.
N
C Manual Unlimited Backyard Service. Gate Areas. No Changes.
W
D Manual Unlimited Backyard Service. Non -Gated Areas. No Changes.
S
E
c
DES
..+rt.,.•. tc[�v p�
�ypO rl. !rill: �
. •'i°v°Jlw. l� '��
P �
c9��!
A-15
Current Rates Effective 1/1/17
Monthly Cart Service Rates
One each Refuse, Recycling, and Green Waste Cart, rate based upon
Refuse Cart size:
Refuse Cart Size: 35 -gallon 64 -gallon
96 -
Standard Service $19.78 $25.46
$31.12
Additional Refuse Cart $6.80 $9.07
$11.35
Additional Recycling Cart Free Free
Free
Additional Green Waste $2.27 n/a
Cart (above three)
$4.54
Other Cart Rates and Services (Charged in Addition to Monthly
Cart Service Rates
Backyard Service - per home per month, all cart sizes
$6.99
Pup Service - per home per month, all cart sizes
$5.83
Backyard and Pup Services - per home per month, all
cart sizes
$9.32
Senior Rate Reduction
10%
Low -Income Rate Reduction
5%
Annual Payment Rate Reduction
5%
Additional Special Overage Pickup for Automated
Cart Customers (in excess of two pickups per year)
$5.67
Additional Bulky Item pickups (in excess of three free
pickups per dwelling unit per year)
$28.36
Cart Exchange (after free -exchange period)
$17.02
Cart Re -delivery Fee (if carts are pulled for non-
payment, one charge for redelivery of all carts)
$28.36
Re -Start Fee - after voluntary suspension of service, if
carts have not been pulled
$17.02
* Including all fees retained by, or paid to, City.
EDCO Service Area 1
City of Rancho Palos Verdes - Area 1
EDCO SINGLE-FAMILY RATES Proposed Rates
FY 17-18 Effective 8/1/2017
Monthly Cart Service Rates
One each Refuse, Recycling, and Green Waste Cart, rate based upon
Refuse Cart size:
Refuse Cart Size: 35 -gallon 64 -gallon
96 -gallon
Standard Service $20.36 $26.21
$32.03
Additional Refuse Cart $7.00 $9.34
$11.68
Additional Recycling Cart Free Free
Free
Additional Green Waste $2.34 n/a
Cart (above three)
$4.67
Other Cart Rates and Services (Charged in Addition to Monthly Cart
Service Rates
Backyard Service - per home per month, all cart
sizes
$7.19
Pup Service - per home per month, all cart sizes
$6.00
Backyard and Pup Services - per home per month,
all cart sizes
$9.59
Senior Rate Reduction
10%
Low -Income Rate Reduction
5%
Annual Payment Rate Reduction
5%
Additional Special Overage Pickup for Automated
Cart Customers (in excess of two pickups per year)
$5.84
Additional Bulky Item pickups (in excess of three
free pickups per dwelling unit per year)
$29.19
Cart Exchange (after free -exchange period)
$17.52
Cart Re -delivery Fee (if carts are pulled for non-
payment, one charge for redelivery of all carts)
$29.19
Re -Start Fee - after voluntary suspension of service,
if carts have not been pulled
$17.52
* Including all fees retained by, or paid to, City.
Increase eff 7/1/17 3.30%
Reverse Prop 218 Adj 2016 -0.65%
Adjust for 1 month delay (eff 8/1/17) 0.28%
Total % Incr Eff. 8.1.17 2.93%
_Z
EDCO Service Area 1
MULTI- FAMILY RATES (Area 1)
Current Rates Effective 1/1/17
Additional Service Charges
Other Bin Service Rates - Per Month
(Fixed)
Monthly Bin Rates
Bin Service
Pickups per week
1 2 3 4
5 6
Container Size
1
2
$13.99 $15.14
Pic kups
3
per week
4
5
6
Extra
Pickups
2 -yard
$88.18
$122.88
$162.20 $180.07
$157.58
$174.94
$227.02
$241.93
$62.88
3 -yard
$122.92
$157.62
$287.27
$192.35
$227.06
$279.09
$290.10
$73.36
3 -yard w compactor
$245.82
$315.26
$597.16
$384.66
$454.11
$558.20
$580.16
$146.75
4 -yard
$140.33
1 $174.97
1
$227.06
$279.13
$340.07 1
$361.44
$83.85
4 -yard w compactor
$280.66
1 $349.96
1
$454.13 1
$558.27
$677.82 1
$722.90
$169.98
6 -yard
$175.05
1 $234.81
1
$279.14 1
$331.23
$384.93 1
$402.43
$125.79
Recycling bin cart
No charge
Additional Service Charges
Other Bin Service Rates - Per Month
(Fixed)
Service
Bin Service
Pickups per week
1 2 3 4
5 6
Locking Bin Service
$6.99 $9.32 $10.48
$11.64
$13.99 $15.14
Scout Vehicles
$29.12 $51.25 $73.36
$95.51
$117.63 $139.75
Bin Push -Out Service (35
feet or further
$48.93 $87.35 $119.95
$147.91
$180.52 $215.45
Additional Service Charges
Rate Per
(Fixed)
Service
Bin Cleaning Per Bin
$51.03
Bin Overage Clean-up (following one written
$22.67
warning) Per Clean Up
$1.58
Additional Bulky Item pickups (in excess of three free
$28.36
pickups per dwelling unit per year) Per Item
6
Emergency Service Rates - one crew and one
$96.39
collection truck (Per Hr)
$90.76
Recycling Rebate
Rebate per
(Fixed)
Unit Per
Environmental
Month
Single Family
$1.58
Multi -Family
$1.58
Fees
Rate Per Service
Collector
$515,933
Environmental
$130,401
Recycling Rebate Fixed
Note 1
Note 1: Rebated directly to Customers Effective 1/1/2013
(No Change/ Rate adjusted per Section 3.2.3 only)
(No Change/ Rate adjusted per Section 3.2.3 only)
Proposed Rates
FY 17-18 Effective 8/1/2017
Additional Service Charges
Rate Per Service
Other Bin
Service Rates - Per Month
Monthly Bin Rates
$23.33
Bin Service
1
on ainer Size
1
2
Pickups per week
3 4
5
6
Extra
Pickups
2 -yard
$10.79
$90.76
$126.48
$162.20 $180.07
$233.67
$249.02
$64.72
3 -yard
$98.31
$126.52
$162.24
$197.99 $233.71
$287.27
$298.60
$75.51
3 -yard
w compactor
$253.02
$324.50
$395.93 $467.42
$574.56
$597.16
$151.05
4 -yard
1 $144.44 1
$180.10 1
$233.71 $287.31
$350.03 1
$372.03
1 $86.31
4 -yard
w compactor
$288.88
$360.21
$467.44 $574.63
$697.68
$744.08
$174.96
6 -yard
1 $180.18 1
$241.69 1
$287.32 $340.94 1
$396.21 1
$414.22
1 $129.48
Re
clin bin cart
JNo charge
Additional Service Charges
Rate Per Service
Other Bin
Service Rates - Per Month
Bin Overage Clean-up (following one written
warning) Per Clean Up
$23.33
Bin Service
1
2
Pick u s
3
per week
4
5
6
Locking Bin Service
$7.19
$9.59
$10.79
$11.98
$14.40
$15.58
Scout Vehicles
$29.97
$52.75
$75.51
$98.31
$121.08
$143.84
Bin Push -Out Service (35
feet or further
$50.36
$89.91
$123.46
$152.24
$185.81
$221.76
Additional Service Charges
Rate Per Service
Bin Cleaning Per Bin
$52.53
Bin Overage Clean-up (following one written
warning) Per Clean Up
$23.33
Additional Bulky Item pickups (in excess of three
free pickups per dwelling unit per year) Per Item
$29.19
Emergency Service Rates - one crew and one
collection truck (Per Hr)
$99.21
Recycling Rebate
Rebate per Unit
(Fixed)
Per Month
Single Family
$1.58
Multi -Family
$1.58
Fees
Collector
$531,050
Environmental
$134,221
Recycling Rebate Fixed
Note 1
Note 1: Rebated directly to Customers Effective 1/1/2013
Increase eff 7/1/17 3.30%
Reverse Prop 218 Adj 2016 -0.65%
Adjust for 1 month delay (eff 8/1/17) 0.28%
Total % Incr Eff. 8.1.17 2.93%
(No Change/ Rate adjusted per Section 3.2.3 only)
(No Change/ Rate adjusted per Section 3.2.3 only)
I_ -W
Area 2 (Former UWS) Service Area
City of Rancho Palos Verdes - Area 2 (former UWS Area)
Current Rates Effective 1/1/17
Monthly Manual Service Rates
Backyard Service for refuse, recycling, and green waste *-
per home per month
$61.80
Manure 32 -gal customer -provided can (per can per
month
$22.47
Monthly Automated Cart Service Rates
One each Refuse, Recycling, and Green Waste Cart, rate based upon
Refuse Cart size:
Refuse Cart Size:
35 -gallon
64 -.gallon
96 -gallon
Standard Service, based
on refuse cart size
$19.78
$25.46
$31.12
Additional Refuse Cart
$6.80
$9.07
$11.35
Additional Recycling Cart
free
free
free
Additional Green Waste
Cart (over three carts)
$2.27
n/a
$4.54
Other Cart Rates and Services (Charged in Addition to Monthly Cart
Service Rates)
Backyard Service - per home per month, all cart sizes
$6.99
Senior Rate Reduction
10%
Low -Income Rate Reduction
5%
Annual Payment Rate Reduction
5%
Additional Special Overage Pickup for Automated Cart
Customers (in excess of two pickups per year), per
pickup
$5.67
Additional Bulky Item pickups (in excess of three free
pickups per dwelling unit per year), per item
$28.36
Cart Exchange (after free -exchange period), per request
$17.02
Cart Re -delivery Fee (if carts are pulled for non-payment,
one charge for redelivery of all carts)
$28.36
Re -Start Fee - after voluntary suspension of service, if
carts have not been pulled, per re -start
$17.02
Proposed Single -Family Maximum( Not to Exceed) Rates
FY 17-18 Effective 8/1/2017
Monthly Manual Service Rates
Backyard Service for refuse, recycling, and green waste
*- per home per month
$63.61
Manure 32 -gal customer -provided can (per can per
month
$23.13
Monthly Automated Cart Service Rates
One each Refuse, Recycling, and Green Waste Cart, rate based upon
Refuse Cart size:
Refuse Cart Size:
35 -gallon
64 -gallon
96 -gallon.
Standard Service, based on
refuse cart size
$20.36
$26.21
$32.03
Additional Refuse Cart
$7.00
$9.34
$11.68
Additional Recycling Cart
free
free
free
Additional Green Waste Cart
(over three carts)
$2.34
n/a
$4.67
Other Cart Rates and Services (Charged in Addition to Monthly Cart
Service Rates)
Backyard Service - per home per month, all cart sizes
$7.19
Senior Rate Reduction
10%
Low -Income Rate Reduction
5%
Annual Payment Rate Reduction
5%
Additional Special Overage Pickup for Automated Cart
Customers (in excess of two pickups per year), per
pickup
$5.84
Additional Bulky Item pickups (in excess of three free
pickups per dwelling unit per year), per item
$29.19
Cart Exchange (after free -exchange period), per request
$17.52
Cart Re -delivery Fee (if carts are pulled for non-
payment, one charge for redelivery of all carts)
$29.19
Re -Start Fee - after voluntary suspension of service, if
carts have not been pulled, per re -start
$17.52
Increase eff 7/1/17
3.30%
Reverse Prop 218 Adj 2016
-0.65%
Adjust for 1 month delay (eff 8/1/17)
0.28%
Increase Eff. 8.1.17
2.93%
Area 2 (Former UWS) Service Area
Multi -Family
Current Rates Effective 1/1/17
Other Bin Service Rates -
Rate Per
Service
Monthly Bin Rates
$2,247.11
Bin Cleaning Per Bin
$28.10
Bin Overage Clean-up (following one written warning)
Container Size
1
No. Pickups
2 3
per week
4
5
6
Extra
Pickups
2 -yard
$77.54
$108.10 $138.10
$153.57
$198.67
$228.94
$16.85
3 -yard
$107.89
$138.13 $168.44
$198.71
$245.24
$275.68
$28.10
4 -yard
$123.09
$153.31 $198.76
$245.28
$296.34
$343.37
$39.33
Manure 3 -yard
$140.45
1$28.10
$28.92
Recycling bin cart
INo charge
Other Bin Service Rates -
Rate Per
Service
Portuguese Bend Beach Club - beach litter container
$2,247.11
Bin Cleaning Per Bin
$28.10
Bin Overage Clean-up (following one written warning)
tn ervice
No. Pickups
1
2
3
4
5
6
Locking Bin Service
$7.99
$9.98
$11.38
$12.78
$14.18
$15.59
Scout Vehicles
$29.60
$50.82
$71.62
$92.62
$113.65
$134.68
Bin Push -Out Service (35
feet or further
$44.90
$79.93
$107.91
$135.93
$163.95
$191.97
Additional Service Charges
Rate Per
Service
Portuguese Bend Beach Club - beach litter container
$2,247.11
Bin Cleaning Per Bin
$28.10
Bin Overage Clean-up (following one written warning)
$28.10
Additional Bulky Item pickups in excess of three free
$28.10
Emergency Service Rates - one crew and one collection
$95.50
Area 2
Current Rates Effective
7
Amount
Collector
$36,432
Environmental
$9,104
Recycling Rebate
$0
Area 1 Total Area 1 2 Per Qtr
$515,933 $552,365 $552,365 $ 138,091
$130,401 $139,505 $139,505 $ 34,876
Multi -Family
PROPOSED MAXIMUM (Not to Exceed) RATES
FY 17-18 Effective 8/1/2017
Other Bin Service Rates -
Rate Per
Service
Portuguese Bend Beach Club - beach litter container
Monthly Bin Rates
Bin Cleaning Per Bin
$28.92
Bin Overage Clean-up (following one written warning)
Container Size
1
2
No. Pickups per week
3 4
5
6
Extra Pickups
2 -yard
$79.81
$111.27
$142.15 $158.07
$204.49
$235.65
$17.34
3 -yard
$111.05
$142.18
$173.38 $204.53
$252.43
$283.76
$28.92
4 -yard
$126.70
$157.80
$204.58 $252.47
$305.02
$353.43
$40.48
Manure 3 -yard
$144.57
$28.92
Recycling bin cart
I No charge
Other Bin Service Rates -
Rate Per
Service
Portuguese Bend Beach Club - beach litter container
$2,312.95
Bin Cleaning Per Bin
$28.92
Bin Overage Clean-up (following one written warning)
m Service
No. Pickups
1
2
3
4
5
6
Locking Bin Service
$8.22
$10.27
$11.71
$13.15
$14.60
$16.05
Scout Vehicles
$30.47
$52.31
$73.72
$95.33
$116.98
$138.63
Bin Push -Out Service (35 feet
or further
$46.22
$82.27
$111.07
$139.91
$168.75
$197.59
Additional Service Charges
Rate Per
Service
Portuguese Bend Beach Club - beach litter container
$2,312.95
Bin Cleaning Per Bin
$28.92
Bin Overage Clean-up (following one written warning)
$28.92
Additional Bulky Item pickups in excess of three free
$28.92
Emergency Service Rates - one crew and one collection
$98.30
Area 2 Area 1 Total Areal 2
FY 17-18 Effective 8/1/2017
Amount
Collector
$37,499
Environmental
$9,371
Recycling Rebate
$0
Increase eff 7/1/17
3.30%
Reverse Prop 218 Adj 2016
-0.65%
Adjust for 1 month delay (eff 8/1/17)
0.28%
% Increase Eff. 8.1.17
2.93%
Per Qtr
$531,050 $568,549 $568,549 $ 142,137
$134,221 $143,592 $143,592 $ 35,898
IZMA
Rate Adjustment Formula and Methodology
FY 17-18
The City has a specific rate adjustment methodology (RAM), which was prepared by the
City's procurement consultant and was approved by the City Council when the EDCO
agreement was approved initially in November 2009, was re -approved in June 2015 when
the contract extension was approved, and most recently in December 2016 when it went
through a Proposition 218 public hearing and notification process and a five year rate
adjustment methodology was approved. The RAM outlines the acceptable cost variables
and national approved indices, and provides detailed guidelines on how future rate
adjustments are calculated. This helps calculation accuracy, while it also protects the City
from sudden rate spikes. Similar methodologies are used by various cities in their recent
solid waste franchise agreements.
1) Disposal Cost Component: EDCO's disposal cost increases are based on the
percentage changes at the county owned disposal facilities for calendar year 2016. To
increase accuracy, a weighted average of the various disposal facilities' rate changes is
calculated and used in the RAM formula. A straight average is not used because
different facilities are used for disposal of trash and processing green waste. To derive
the weighted average, the percentages of where each commodity (trash and green
waste) was delivered to, and the quantity taken to each facility are considered. The total
weighted average disposal cost component changed from $31.01 to $33.07 per ton
between 71/12016 and 7/1/2017. This change is reflected in the following table:
Disposal Facility
Gate Rate $
Gate Rate %
Change/ton
Change/ton
Puente Hills Transfer station - Green Waste
$43.50/ton to
No Change
$43.50/ton
0%
County of Orange * -Solid Waste
$27.00/ton to
2%
$27.53/ton
Southeast Resource Recovery Facility
$65.00/ton to
15.4%
(SERRF)- Long Beach waste to energy facility
$75.00/ton
$31.01 /ton
Total Disposal Cost Component
to
6.6%
$33.07/ton
(Exhibit 5A, Row 14G)
(Weighted Average)
* EDCO has a importation agreement for the next decade with the County of Orange which helps stabilize
landfill disposal rates. Additionally, EDCO's Recycling & Transfer Facility in Signal Hill accepts and
transfers all of the trash collected from the City by EDCO to alternative disposal sites.
2) Service/Collection Cost Component: EDCO's service/collection cost increases are
based on calendar year 2016 and reflect the percentage of increases/decreases in
several national indices from the U.S. Department of Labor, Bureau of Labor Statistics.
These selected indices were specifically chosen because they are tailored to solid waste
collection operations. A weighted average of the various service/collection changes is
calculated and used in the RAM formula. The national indices include:
C-1
(US Dept. of Labor) Index /Commodity
% Change in 2016
Consumer Price Index (CPI)
Increased 2.2%
Producer Price Index (PPI) for Fuel- Natural Gas *
(Decreased 9.1 %)
PPI for heavy -Duty Truck Manufacturing
Increased 1.97%
Hourly Labor Costs **
Increased 2.9%
Total Weighted Average
Service/Collection Component
Increase of 1.8%
(See Exhibit 5A, Row 13G)
* There was a reduction in fuel costs between 2015 and 2016.
** Based on previously contract approved labor rates
Approximately 32% of EDCO's overall costs are related to disposal costs which
increased 6.6% in 2016. Approximately 68% of EDCO's overall costs are related to
service/collection costs which increased 1.8% in 2016. Therefore, EDCO's total
weighted residential rate adjustment, reflecting both disposal and service cost
components is 3.3%. (See attached Table labeled Exhibit 5A, Row 24 G).
The net increase for FY 17-18 will be 2.93°/x. The 2.93% is after adjusting for the 1 -
month billing delay this year (August versus July billing, or +0.28%), and the 6 -month
delay last year (January versus July billing, or -0.65%) due to Prop 218 notification
requirements [3.3%+0.28%-0.65%= 2.93%]. Examples of EDCO's proposed maximum
rates for FY 17-18 are listed below:
Service Level
Current
Proposed
Proposed
Proposed
Maximum
Increase in
Maximum
Maximum Monthly
Single-family
Monthly
Maximum
Monthly
Rates for Seniors
(one trash cart)
Rates
Monthly Rates
Rates
(10% discount)
FY 16-17
FY 17-18
FY 17-18
FY 17-18
Curbside 35 -gallon
$19.78
$0.58
$20.36
$18.32
Curbside 64 -gallon
$25.46
$0.75
$26.21
$23.59
Curbside 96 -gallon
$31.12
$0.91
$32.03
$28.83
Backyard Manual
$61.80
$1.81
$63.61
$57.25
Unlimited (former
UWS customers)
Multi -family accounts would have a similar proposed increase Maximum of 2.93%. For
example, the Maximum on the rate for a 3 -yard bin picked up twice a week would
increase by $4.62/mo. from $157.62/mo. to $162.24.
C-2
EDCO Disposal Corporation
EXHIBIT 5A
RATE ADJUSTMENT FORMULA - Effective 8/1/2017*
Step One: Calculate percentage change in indices
Step Two: Determine components
22
D
A
B
C
Row
Adjustment Factor
Index
Old Index Value
(prior year's "New
Index")
2016
New Index Value
2017
Percent Change In Index
((Column B/
Column A) -1)
Service Component
24
Total Rate Adjustment
100.00/0
20
1
Labor (hrly rate)
(1)
23.90
24.60
2.9%
2
Fuel (Natural Gas)
(2)
106.3
96.6
-9.1%
3
Equipment
(3)
142.1
144.9
2.0%
4
All Other
(4)
242.247
247.602
2.2%
13
1 Service Sub -Total
100.0%
3 Yd Bin 2x week
1.8%
1.8% (7)
5
IDisposal Component
1 (5)
1 $31.01
1 $ 33.07
1 6.6%
Step Two: Determine components
14 1 Disposal Sub -Total 1100% 1 6.6% 1 6.6% 1 6.6% (8)
Total Rate Adjustment
22
D
E
F
G
Row
Adjustment Factor
Cost Component
Weighted as a /o of
Component Total (6)
Percent Change In
Index (from Column
C)
Total Weighted Change
(Column D x E)
Total Weighted Change,
Subject to Increase Cap
Service Component
24
Total Rate Adjustment
100.00/0
20
9
Labor
31.3%
2.9%
0.9%
0.83
10
Fuel
4.9%
-9.1%
-0.4%
9.02
11
Equipment
21.6%
2.0%
0.4%
22
12
All Other
42.2%
2.2%
0.9%
4.03
13
1 Service Sub -Total
100.0%
3 Yd Bin 2x week
1.8%
1.8% (7)
14 1 Disposal Sub -Total 1100% 1 6.6% 1 6.6% 1 6.6% (8)
Total Rate Adjustment
22
Service
68.3%
1.8%
1.2%
1.2%
23
Disposal
31.7%
6.6%
2.1%
2.1%
24
Total Rate Adjustment
100.00/0
20
Residential Service - 64 gal
3.3%
Step Three: Apply percentage change to sample rates
Step Four: Re -weight cost components
L
M
H
I
P
J
Cost Component
Weighting (Column
D)
K
Row
Rate Category
Cost Components
Reweighted to Equal
100% (To be used for
FY 2017/18)
Existing Customer
Maximum Rate
FY 2016/17
Total Weighted
Percentage Change
(Row 13, Column F)
Rate Increase or
Decrease (Column H x
Column I)
Adjusted Max. Rate
(Column H + Column J)
FY 2017/18
20
Residential Service - 64 gal
$
25.29
3.3%
$
0.83
$
26.12
21
Additional Refuse Cart
$
9.02
3.3%
$
0.30
$
9.32
22
3 Yd Bin, 1x week
$
122.14
3.3%
$
4.03
$
126.17
23
3 Yd Bin 2x week
$
156.62
3.3%
$
5.17
$
161.79
24
Extra Pick-up - 2 yd
$
62.48
3.3%
$
2.06
$
64.54
25
Extra Bulky Item
$
28.18
3.3%
$
0.93
$
29.11
26
Extra Bin Cleaning
$
50.70
3.3%
$
1.67
$
52.37
Step Four: Re -weight cost components
(1) Driver A/B rate from Agreement between local haulers and Package and General Utility Drivers Local Union 396, International Brotherhood of Teamsters.
(2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change. (Preliminary numbers
used in March)
(3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change (Preliminary numbers used in March).
(4) Consumer Price Index for All Urban Consumers (CUUR0000SA0LIE), all items less food and energy index - U.S. city average - average annual change.
(5) As determined in Exhibit 5B.
(6) This column comes from Column P of the previous year's rate adjustment worksheet.
(7) Service component change is limited to 4% in any one year with carryover to subsequent years
(8) Total disposal increase in 2017 of 6.6% did not exceed the 8% cap.
* one month rate implementation delay due to Prop 12 notification.
Draft, 5/11/2017 City of Rancho Palos Verdes/EDCO
C-3
L
M
N
O
P
Row Adjustment Factor Index
Cost Component
Weighting (Column
D)
Percent Change as
Applied to Rate
Adjustment
(Column E)
Increase in Cost
Components (Column L
x Column M)
Cost Component
Increased (Column L +
Column N)
Cost Components
Reweighted to Equal
100% (To be used for
FY 2017/18)
27 Labor (1)
31.3%
2.9%
0.9%
32.2%
31.6%
28 Fuel (2)
4.9%
-9.1%
-0.4%
4.5%
4.4%
29 Equipment (3)
21.6%
2.0%
0.4%
22.0%
21.6%
30 All Other (4)
42.2%
2.2%
0.9%
43.1%
42.4%
31 Service Sub -Total
100.0%
101.8%
100.0%
38 Service Component 68.3% 1.8% 1.2% 69.5% 67.3%
39 Disposal Component 31.7% 6.6% 2.1% 33.8% 32.7%
40 Total 100.0% 103.3% 100.0%
(1) Driver A/B rate from Agreement between local haulers and Package and General Utility Drivers Local Union 396, International Brotherhood of Teamsters.
(2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change. (Preliminary numbers
used in March)
(3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change (Preliminary numbers used in March).
(4) Consumer Price Index for All Urban Consumers (CUUR0000SA0LIE), all items less food and energy index - U.S. city average - average annual change.
(5) As determined in Exhibit 5B.
(6) This column comes from Column P of the previous year's rate adjustment worksheet.
(7) Service component change is limited to 4% in any one year with carryover to subsequent years
(8) Total disposal increase in 2017 of 6.6% did not exceed the 8% cap.
* one month rate implementation delay due to Prop 12 notification.
Draft, 5/11/2017 City of Rancho Palos Verdes/EDCO
C-3
Collector and Environmental Fees, Recycling Rebate/Credit
FY17-18
The City receives a Collector Fee and an Environmental Programs Fee. Per EDCO's
agreement, the fee amounts are fixed annual amounts, and could automatically get
adjusted when the rates are adjusted. These fees are incorporated in the monthly rates,
and are not separate line -items.
Collector Fee:
EDCO's current Collector Fee is the fixed annual amount of $552,365. If the rate
adjustment request is approved, the Collector Fee increases by 2.93% (or $16,185) for
a FY17-18 total of $569,000.
The Collector Fee is deposited into two funds: 1) General Fund, and 2) Waste Reduction
Fund. The residential and arterial streets' wear and tear due to truck traffic is addressed
through the General Fund and projects such as the annual residential overlay, slurry seal,
arterial rehabilitation, and ongoing pothole, curb and gutter repairs. The administration of
EDCO's contract, assisting with customer service questions and concerns, implementing
ongoing Citywide recycling and waste reduction activities, organizing special events, and
complying with State mandates and preparing annual reports are paid through the
restricted Waste Reduction Fund. Staff plans to maintain the current percentage allocation
of the Collector Fee between the General Fund and Waste Reduction Fund for FY17-18.
(See below)
Collector Fee
Fund Allocation
Current
Percentage
FY16-17
Proposed
Percentage
FY17-18
Proposed Amount
(rounded)
FY17-18
General Fund- Various
75%
75%
$427,000
Waste Reduction Fund
25%
25%
$142,000
Total ($ rounded)
100%
100%
$569,000
Environmental Programs Fee:
EDCO's current Environmental Fee is the fixed annual amount of $139,500, which is
deposited 100% into the Storm Water Quality Program of the General Fund and it supports
sweeping of residential and arterial streets, servicing trashcans at bus shelters, and
assisting in NPDES/storm water quality program implementation and compliance. If
approved, the FY17-18 Fee would also increase by 2.93% (or $4,100) for a total of
$143,600. Staff recommends maintaining the current percentage allocation for FY17-18.
W:\LAUREN\STAFFRPT\REFUSE\Subcommittee\2017\final rate adjust\Collector and env Fees final 17 18.docx May 26, 2017
D-1
Recycling Rebate/Credit:
Until 2013, the City received an annual recycling rebate of $280,000 from EDCO and
$16,000 from Universal Waste Systems (UWS). The funds were deposited into the City's
Recycling (Beautification) Fund for use on median improvement projects and/or median
maintenance, and Beautification Grants.
Since 2013 at the direction of City Council those amounts are refunded back to customers
in their billing statements as a "Recycling Credit or Rebate". EDCO will continue to provide
their existing customers with the City Council approved recycling rebate/credit of
$1.58/month/customer/unit. The customers in the former UWS area will also continue to
receive their City Council approved recycling rebate/credit of $1.31/month/customer/unit.
The minor monthly difference ($0.27/mo.) is due to the difference in the ratio of the number
of former UWS customers to its contractual annual recycling revenue due to the City, as
compared to EDCO's.
For FY17-18 there will be no changes in the amounts of the recycling credit, since there
has been no change in the California Redemption Value (CRV) of beverage containers.
The state's CRV amount per beverage container (either 5 cents or 10 cents depending on
the size of the beverage container) has not changed since March 2012.
W:\LAUREN\STAFFRPT\REFUSE\Subcommittee\2017\final rate adjust\Collector and env Fees final 17 18.docx May 26, 2017
D-2