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RPVCCA_CC_SR_2014_06_03_02_Residential_Solid_Waste_and_Recycling_Rate_Adjustment_UWS PUBLIC HEARING Date: June 3, 2014 Subject: Residential Solid Waste and Recycling Rate Adjustment for Universal Waste Systems, Inc. for FY 14-15 Subject Property: Citywide 1. Declare the Hearing Open: Mayor Duhovic 2. Report of Notice Given: City Clerk Morreale 3. Staff Report & Recommendation: Senior Administrative Analyst Ramezani 4. Public Testimony: Applicant: N/A Appellant: N/A 5. Council Questions: 6. Rebuttal: 7. Declare Hearing Closed: Mayor Duhovic 8. Council Deliberation: 9. Council Action: 2-1 CITY OF RANCHO PALOS VERDES MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR & CITY COUNCIL MEMBERS MICHAEL THRONE, P.E., DIRECTOR OF PUBLIC WORKS ~ JUNE 3, 2014 RESIDENTIAL SOLID WASTE AND RECYCLING RATE ADJUSTMENT FOR UNIVERSAL WASTE SYSTEMS, INC. FOR FY 14-15 (Supports 2014 City Council Goal of Government Efficiency, Accountability, Fiscal Control, Transparency and Oversight) CAROLYNN PETRU, ACTING CITY MANAGE~ Project Manager: Lauren Ramezani, Senior Administrative Analyst ~ RECOMMENDATION Approve the cap on permissible rates that Universal Waste Systems, Inc. (UWS) can charge single-family and multi-family residential customers in FY 14-15. BACKGROUND The City has exclusive single-family and multi-family residential solid waste and recycling agreements with EDCO Disposal Corporation (EDCO) for 95% of the City and Universal Waste Systems, Inc. (UWS) for the remaining 5% of the City, concentrated in the coastal and landslide areas. Both agreements commenced on July 1, 2010 and will terminate on June 30, 2017. Additionally, both agreements have an extension option of up to 36- months, at the City's sole discretion. The City establishes an annual cap on the permissible rates EDCO and UWS can charge their residential customers. Per their residential agreements, EDCO and UWS are eligible for annual adjustments. The only permissible rate adjustments are those outlined in the Agreement. The rate adjustments are based on changes to nationally published price indices and solid waste disposal facilities' gate rates. The rate adjustment requests are due to the City by March 30 of every year. EDCO and UWS both submitted their requests for rate adjustments for FY 14-15 prior to that deadline. During the 2009 residential contracts procurement process, one of the City's goals was to provide identical Citywide caps on rates for automated curbside collection. Therefore, when City Council approved UWS' residential agreement in 2009, that approval was contingent on the cap for UWS' automated curbside rates matching the cap for EDCO's automated curbside rates. 2-2 UWS Request for Rate Adjustment FY 14-15 June 3, 2014 Page2 The proposed cap on authorized FY 14-15 automated curbside rates are discussed in EDCO's staff report. Therefore, per the agreement, UWS would match EDCO's current and future capped rates. EDCO's request is addressed in a separate staff report. Staff placed notices of the public hearing in the Palos Verdes Peninsula News on May 22 and May 29, 2014. DISCUSSION This report will focus specifically on UWS' other residential collection services, which are non-automated and include: manual backyard unlimited, residential manure, and multi- family bin collection and service. Similar to EDCO, UWS' City approved rate adjustment methodology (RAM) has two cost components: 1) Disposal Cost Component and 2) Service/Collection Cost Component. The RAM is based on the average percentage changes, both increases and decreases, for 12 months. For rate adjustments effective FY 14-15, the calendar year 2013 (January 2013 to December 2013) is considered. Once approved, the authorized cap on rates is effective July 1, 2014, which is 6 months later. 1) Disposal Cost Component: UWS' disposal cost increases are based on the percentage increase at the Puente Hills County owned landfill for the calendar year 2013. Puente Hills Landfill closed on October 31, 2013, and was replaced by the Puente Hills MRF which resulted in a 19.1 % increase in the disposal costs for trash. Disposal Facility Gate Rate$ Change/Ton Gate Rate% Change/Ton In 2013 In 2013 Puente Hills-Solid Waste(trash) $38.41/ton to $45.75/ton 19.1% 2) Service/Collection Cost Component: UWS' service/collection cost increases are based on the percentage increases/decreases in several national indices from the U.S. Department of Labor, Bureau of Labor Statistics, for calendar year 2013. These indices are identical to the ones used by EDCO, which are specifically tailored to solid waste collection operations. Therefore, UWS' collection cost component change is the matching 2.8%. UWS' total weighted residential rate adjustment, which reflects both disposal and service cost components, is 5.3%. Therefore, in accordance with these indices, the change in the landfill gate rate, and per the provisions in their agreement, UWS is requesting an increase of 5.3 % in the cap on permissible rates for manual backyard unlimited, manure, and multi- family bin services in FY 14-15. This 5.3% is not in addition to EDCO's 3.6% requested rate increase. The 5.3% is for separate and different (non-automated) collection services provided by UWS. Comparatively, in FY 11-12 UWS' rate increase was 2.5%, in FY 12-13was 1.7%, and in FY 13-14 was 0.4%. W:\LAUREN\STAFFRPT\REFUSE\2014\UWS rate adjustment fy 14-15 1 .docx 2-3 UWS Request for Rate Adjustment FY 14-15 June 3, 2014 Page3 The large jump in the proposed FY 14-15 rates as compared to the FY 13-14 rates is because of these main factors: 1) a 19.1 % increase in the landfill gate rate, and 2) the price of Natural Gas (in FY 2012, the price of natural gas decreased by 31%, which was a 10-year low, while in 2013, natural gas prices went up 29.1%), and lastly, 3) UWS does not have the same disposal component cap as EDCO. This requested increase allows UWS to adjust their rates to reflect the cost increases they incurred in 2013. There are no additional costs or surcharges added to their requested rate increase. Examples of UWS' proposed rates for FY 14-15 are listed below: Service Level Current Cap Proposed Cap on Proposed Cap on Proposed Cap on Single-family on Monthly Increase in Monthly Rates Monthly Rates for Rates Monthly Rates for for Seniors FY 13-14 FY 14-15 FY 14-15 FY 14-15 Manual Backyard $57.57 $3.05 $60.62 $54.56 Unlimited Manure 32-gal can $20.93 $1.11 $22.04 $19.84 The multi-family accounts would have a similar proposed increase cap of 5.3%. For example, the cap on the permissible rate for a 3-yard bin picked up once a week would increase by $5.33/month, from $100.50/month to $105.83 /month. In conclusion, if approved, UWS' automated curbside services would increase 3.6% (similar to EDCO's) while their other non-automated services would increase 5.3%. Staff and SCS Engineers, the City's AB 939 consultant, have reviewed the data and calculations provided by UWS, and found them to be accurate. (See attached spreadsheets for proposed authorized cap on rates for all single and multi-family service levels). Recycling Rebate to Customers: Until January 2013, UWS provided the City an annual Recycling Rebate of $16,000, which was deposited in the Beautification-Recycling Fund. Since then, Council approved issuing a rebate to residential ratepayers resulting in an ongoing credit of $1.31 per month per customer/unit. The Recycling Rebate is based on the California Redemption Value (CRV) of beverage containers. Since there were no changes in the CRVs in the past year, there will be no change in the customer rebate/credit amount. This monthly credit offsets all or a large portion of the proposed automated service increase of 3.6% or manual service increase of 5.3%. Finally, the minor difference ($0.27/month) in UWS' monthly credit amount compared to EDCO is due to the difference in the ratio of the number of UWS customers to its contractual annual recycling revenue due to the City, as compared to EDCO's. Fee Distribution/Allocation: UWS currently pays the City 12% of its gross receipts for Collector Fee (estimated at $35,000/year) and 3% for Environmental Fee (estimated at $9,000/year). The allocation of the fees among City funds will be similar to EDCO's. W:\LAUREN\STAFFRPT\REFUSE\2014\UWS rate adjustment fy 14-15 1 .docx 2-4 UWS Request for Rate Adjustment FY 14-15 June 3, 2014 Page4 FISCAL IMPACT Approving the staff recommendation would permit UWS to increase customers' FY 14-15 rates by up to 3.6% for automated and by up to 5.3% for manual backyard unlimited, residential manure, and multi-family bin services. An increase by UWS of the full 3.6% for automated and 5.2% for non-automated services would result in an increase in the Collector Fee of approximately $1,500 and the Environmental Fee of approximately $400 in FY 14-15. Attachments: UWS Agreement Section 6.3 "Schedule of Future Adjustments" Various tables: Exhibit 5A-calculations, UWS' current and proposed rates, Dept. of Labor National Indices, Puente Hills Gate Rate W:\LAUREN\STAFFRPT\REFUSE\2014\UWS rate adjustment fy 14-15 1 .docx 2-5 ARTICLE6 CONTRACTOR COMPENSATION AND RATES 6.1 General The maximum rates set forth in Exhibit 4, and as more fully defined as Contractor Compensation in this Article, shall be the maximum amount Contractor may charge Customers as full, entire and complete compensation due pursuant to this Agreement for all labor, equipment, materials and supplies, taxes, insurance, bonds, letters of credit, .overhead, Disposal, transfer, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed. Contractor shall impose no other charges for services provided to Customers unless approved in advance in writing by the City Manager. Contractor shall not charge for Collection at Premises owned and/ or operated by the City now and in the future. 6.3 Schedule of Future Adjustments l~uJS Beginning with the Rate Year starting July 1, 2011 and ending on June 30, 2012 and for all subsequent Rate Years, Contractor may request an annual adjustment to the maximum rates shown in Exhibit 4. The Contractor shaIJ submit its request in writing, to be received by City in Person or via certified mail, by the preceding March 30, and shall be based on the method of adjustment described in Section 6.4. Failure to submit a written request by March 30 shall result in Contractor waiving the right to request such an increase for the subsequent Rate Year. Missed rate adjustments may not be added to @ rate adjustment applications in ensuing yearsJ'.Adjustment to the maximum rates is I ~~::::: :;t:.~:~ ~· d~:~~~~: :.:r!i;u:::!1~:;i;:.:i:~:::~: ;: requested maximum rate adjustment meets the requirements as set forth herein. 6.4 Method of Adjustments 6.4.1 General Pursuant to Section 6.3, the Contractor may request an adjustment to the maximum rates according to the method descl'ibed below and the formulas shown in Exhibit 5, June 26. 2009 -78-City of Rancho Palos Verdes!UWS 2-6 EXHIBIT5A Universal Waste Systems, Inc. (UWS) RATE ADJUSTMENT FORMULA-Effective 7N2014 Step One: Calculate percentage change in indices A B c Old Index Value (prior New Index Value Percent Change In Row Adjustment Factor Index year's "New Index") 2014 Index ((Column B/ 2013 ColumnA)-1) 1 Labor (hrly rate) (1) $22.80 22.80 0.0% 2 Fuel (natural gas) (2) 118.3 152.7 29.1% 3 Equipment (3) 134.4 136.7 1.7% 4 Disposal Component (4) $ 38.41 $ 45.75 19.1% 5 All Other (5) 229.755 233.806 1.8% Step Two: Determine components D E F Cost Component Percent Change In Total Weighted Row Adjustment Factor Weighted as a% of Index Change Component Total (6) (from Column C) (Column D x E) 6 Labor (1) 24.8% 0.0% 0.0% 7 Fuel (2) 4.2% 29.1% 1.2% 8 Equipment (3) 17.5% 1.7% 0.3% 9 Disposal (4) 16.3% 19.1% 3.1% 10 All Other (5) 37.2% 1.8% 0.7% 11 Total Rate Adjustment 100% 5.3% FY 14-15 Rate Increase Step Three: Apply percentage change to rates G H I J Existing Customer Total Weighted Rate Increase or Adjusted Rate Row Rate Category Rate Percentage Change Decrease (Column H x (Column H + Column FY13-14 (Row 13, Column F) Column I) J) FY14-15 12 Residential Service $ 57.57 5.3% $ 3.05 $ 60.62 <Backvard Manual) 12 32 Gallon Manure $ 20.93 5.3% $ 1.11 $ 22.04 14 3 Yd Bin, lx week $ 100.50 5.3% $ 5.33 $ 105.83 15 3 Yd Bin 2x week $ 128.67 5.3% $ 6.82 $ 135.49 16 Extra Pickup - 2 yd $ 15.70 5.3% $ 0.83 $ 16.53 17 Extra Bulky Item $ 26.17 5.3% $ 1.39 $ 27.56 18 Extra Bin Oeaning $ 26.17 5.3% $ 1.39 $ 27.56 Step Four: Re-weight cost components K L M N 0 Cost Component Percent Change as Increase in Cost Cost Component Cost Components Row Adjustment Factor Index Weighting Applied to Rate Components (Column Increased (Column K + Reweighted to Equal (ColumnD) Adjustment 100% (to be used for used for FY 13-14 (ColumnE) KxColumnL) ColumnM) FY14/15) 19 Labor (1) 24.8% 0.0% 0.0% 24.8% 23.6% 20 Fuel (2) 4.2% 29.1% 1.2% 5.4% 5.1% 21 Equipment (3) 17.5% 1.7% 0.3% 17.8% 16.9% 22 Disposal (4) 16.3% 19.1% 3.1% 19.4% 18.4% 23 All Other (5) 37.2% 1.8% 0.7% 37.9% 36.0% 24 Total 100.0% ~ x ' ' 105.3% 100.0% ' f " UWS Rate Adjustment Request FY 14/15 (1) Driver A/B hourly 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 available in March. (3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing -average annual change. Preliminary numbers available in March. (4) Gate rate at the Disposal Facility, or gate rate at Puente Hills Landfill, whichever charge per ton is less. (5) Consumer Price Index for All Urban Consumers (CUUROOOOSAOLlE), all items less food and energy index -U.S. city average -average annual change. (6) This column comes from Column 0 of the previous year's rate adjustment worksheet. W:\LAUREN\Solid Waste\HAULERS\UWS\rate adjsut 14-15\UWS-City of RPV 2014 Increase -final 5-23-14 .xlsx /BY Svc Rate Increase 5/23/2014, 3:50 PM 1of1 2-7 Universal Waste Systems, Inc. Current Single--Family Maximum not to Exceed Rates FY 13-14 Effective 7/1/2013 Monthly Manual Service Rates Backyard Service for refuse, recycling, and green waste* -per home per monlh $57.57 Manure 32-gal customer-provided can (per I $20.93 can per month) Monthly Automated Cart Service Rates One each Refuse, Recycling, and Green Waste Cart. rate based upon Refuse Cart size: Refuse Cart 35-ga!Jon 64-ga!Jon 96- Size: allon Standard $18.73 $24.10 $29.46 Service, based on refuse cart Siu Additional $6.44 $8.59 $10.74' Refuse Cart Additional n/a n/a n/a Recycling Cart Additional $2.15 n/a $4.30 Green Waste Cart(over Other Cart Rates and Services (Charged in Addftion to Monthly Cart Service Rates) Backyard Service-per home per month, all I $6.62 cart sizes Senior Rate Reduction I 10% Low-Income Rate Reduction I 5% Annual Payment Rate Reduction I 5% Additional Special Overage Pickup for I $5.37 Automated Cart Customers (in excess of two pickups per year), per pickup Additional Bulky Item pickups (in excess of I $26.85 three free pickups per dwelling unit per lvear), per item Cart Exchange (after free-exchange period), I $16.11 loer reauest Cart Re-delivery Fee (if carts are pulled for I $26.85 non-payment. one charge for redelivery of all carts) Re-Start Fee-after voluntary suspension of I $16.11 service, if carts have not been pulled, per re- start Coty Of Rancho Palos Verdes 7 /1/2014 Rate Adjustment -Residential Multi-family uws uws SINGLE-FAMILY Universal Waste Systems, Inc. uws Proposed Single-Family Maximum not to Exceed Rates Increase 5.30% Backyard, MF& Manure FY 14-15 Effective 7/1/2014 Monthly Manual Service Rates Increase ~Automated cart service Backyard Service for refuse, recycling, and $60.62 green waste•-per home per month Manure 32-gal customer-provided can (per $22.04 can per month) Monthly Automated Cart Service Rates One each Refuse, Recycling, and Green Waste Cart, rate"based uoon Refuse Cart size: Refuse Cart 35-gallon 64-gallon 96- Size: ea II on Standard $19.40 $24.97 $3052 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 1 :art(over Other Cart Rates and Servi«S (ChMged in Addition to Monthly Cart Service Rates) Backyard Service -per home per month, alt $6.86 cart sizes Senior Rate Reduction 10% Low-Income Rate Reduction 5% Annual Payment Rate Reduction 5% Additional Special Overage Pickup for $5.56 Automated Cart Customers (in excess of two pickups per year), per pickup Additional Bulky Item pickups (in excess of $27.82 three free pickups per dwelling unit per lvear), oer item Cart Exchange (after free-exchange period), $16.69 1""'""1"PC1Uest Cart Re-delivery Fee (if carts are pulled for $27.82 non-payment, one charge for redelivery of all carts) Re-Start Fee -after voluntary suspension of $16.69 service, if carts have not been pulled, per re- start W:\lAUREN\SoHd Waste\HAULERS\UWS\r.ite adjsut 14-15\UWS-. Clty of RPV 2014 Increase -final 5-23-14 .xlsx/ Rate Sheets S/23/2014,3:SOPM lof2 2 - 8 City Of Rancho Palos Verdes 7/1/2014 Rate Adjustment-Residential Multi-family uws EXHIBIT4 Universal Waste Systems, Inc. Multi-Family CURRENT MAXIMUM (Not to Exceed) RATES• for FY 13-14 Fon th ---·-··--· -·--·-··-··-------for} ,013 ·-· ~-· ., ----___ .... •· 1-··---· ----· Monthly Bin Rates No. Pickups per week Container Size 1 2 3 4 2-"ard $72.23 $100.69 $128.64 $143.05 3-vard $100.50 $128.67 $156.90 $185.10 4-vard $114.66 $142.81 $185.15 $228.48 Manure3-$130.83 lvard Recycling No charge bin/cart Other Bin Service Rate> -Per Month No. Pickups per week Bin Service 1 2 3 Locking Bin $7.45 $9.30 $10.60 Service Scout Vehicles $27.57 $47.34 566.71 Bin Push-Out Service (35 $41.82 $74.45 $100.52 feet or '--'--' Additional Service Charges I Rate Per Service Portuguese Bend Beach Oub-beach litter I $2,093.19 container collection per month (not to exceed) Bin Oeaning Per Bin $26.17 Bin Overage Oean-up (following one written $26.17 warning) Per Clean Up Additional Bulky Item pickups (in excess of I $26.17 three free pickups per dwelling unit per year) Per Item Emergency Service Rates-one crew and one I $88.96 c~Uection truck (Per Hr) Fees FY 13-14 Amount Collector 12% of gross Receipts Environmental 3% of gross RecetptS 4 $11.91 $86.28 $126.62 5 $185.06 $228.44 $276.04 5 $13.21 $105.87 $152.72 6 Extra Pickups $213.26 $15.70 $256.80 $26.17 $319.85 $36.64 $26.17 6 $14.52 $125.45 $178.82 &-!cvdinJ;!; Rebate $0 Rebate offered to customers as of Jan 1, 2013 of $1.31/mo/ per unit/ per customer. •the rates are maximum not to exceed (capped) rates. EXHIBIT4 Universal Waste Systems, Inc. Multi-Family PROPOSED MAXIMUM (Not to Exceed) RATES• for FY 14-15 --. Monthly Bin Rates No. Pickups per week Container Sae 1 2 3 4 2-vard $76.06 $106.03 $135.46 $150.63 3-vard $105.83 $135.49 $165.22 $194.91 4-ovard $120.74 $150.38 $194.96 $240.59 Manure3-$137.76 Iva rd Recycling No charge bin/cart Other Bin Service Rates-Per Month No. Pickups per week Bin Service 1 2 3 Locking Bin I Service $7.84 $9.79 $11.16 Scout Vehicles $29.03 $49.85 $70.25 Bin Push-Out $44.04 $78.40 $105.85 Service (35 feet or lr. ... t. .... \ Additional Service Owges I Rate Per Service Portuguese Bend Beach Oub-beach litter I $2,204.13 container collection per month (not to exceed) Bin Oeaning Per Bin $27.56 Bin Overage Oean-up (following one written $27.56 waminJ;!;) PerOean Up Additional Bulky Item pickups (in excess of I $27.56 three free pickups per dweUing unit per year} Per Item Emergency Service Rates -one crew and one I $93.67 collection truck (Per Hr) Proposed Fees FY 14-15 Amount Environmental l% of gross Receipts 4 $12.54 $90.85 $133.33 5 $194.87 $240.55 $290.67 5 $13.91 $111.48 $160.81 ICoUecto• I I'"' of 1=• R"elpU Recycling Rebate $0 Rebate offered to customers as of 1/1/2013. No change. 6 Extra Pickups $224.56 $16.$3 $270.41 $27.56 $336.80 $38.58 $27.56 $15.29 $132.10 $188.30 W:\lAUREN\Solld Waste\HAUlERS\UWS\rate adjsut 14-15\UWS-City of RPV 2014 Increase -final 5-23-14 .xlsx I R<1te Sheets 5/23/2014,3:SOPM 2of2 2 - 9 Consumer Price Index -All Urban Consumers Series Id: CUUROOOOSAOL 1 E Not Seasonally Adjusted Area: U.S. city average Item: All items less food and energy Base Period: 1982-84=100 Download:. 2004 2005 2006 2007 2008 2009 2010 = 203.6 209.112 213.866 217.685 220.602 i 2011 t. ~!!,12 227.237 13.z:82?. 0 ~ ;;;;;.;.;.;. -.;, '; 2013 231.612 232.432 233.052 223.011 ;~!!,~J135.~~L.J~~.,l~~~· 5/27/2014 230.196 234.258 Change % 4.051 1.8% 200.2 I 204.7 ! 209.691 214.61 218.433 220.895 201.6 207.1 211.767 216.533 220.037 221.778 EDCO Disposal Corporation 2 - 1 0 Data extracted on: March 7, 2014 (1:53:38 PM) Producer Price Index-Commodities Series Id: WPU0531 Not Seasonally Adjusted Group: Fuels and related products and power Item: Natural gas Base Date: 198200 2012 Natural Gas Index was at a 10-year low due to historically high supply inventories Download: r·-,~-~~vear ' lan· ··1······Fen····r111ar··-·r····APr-· .. ·r-·Mav·--T···1un·· .. ~····--::ra1r·-r·--1t119-···r··--·sei>···--·1··--·'.oa ...... r ..... Nov· ...... i~·I>ee .. -·rrnmrar~~ l 2004 242.3 . 231.2 208.1 218.7 241.4 270.7 257.5 249.8 212.8 222.1 306.7 289.5 245.9 l ,. ~ 2005 252.4 253.2 257.4 298.2 278.2 260.5 296 316 417.3 492.7 486.4 416 335.4 ! r 2006 403.4 , 317.6 283.6 277.4 275.8 240.9 241.7 284 263.4 176.6 292.9 307 280.3 i 2001 241.7 I 295.5 I 298.1 I 288.4 I 301.9 I 304.7 I 274 I 241.3 I 216.8 I 248.6 I 282.3 I 292.1 i 273.8 ! 1 2oos I 293.4 I 332.4 I 362.7 I 384 ! 437 ~ 449.5 ! 489.9 I 355.7 I 306.9 i 257 ~ 217.2 I 242 ! 344 1 l 2011 l. 2012 l 2013 ~ 2014 229.4 ··175:9· 146.8 138.7 --135.6 140,2 ___ ---151~5·--147:"8" 123.3 154 181.5 195.1 160 l 244.4 231.2 204.3 168.8 175.8 178 195.4 194.3 157.7 159.6 143.9 176.7 185.8 1 179.6 I 183 i 165 ~ 178.6 i 182.4 i 1~3.9 i 184 I 182.5 g 167.1 i 158.4 I 148.3 ! 144.4 l 171.4 i 132.4 ~ 115.3 l 104.7 ! 92.3 I 89.4 I 102.1 I 115.6 ! 125.9 D 115.4 ! 126.2 ! 143.5 i 152.3 i 117.9 I 143.1 I 138.2 l 144.2 ! 163.9 i 1n.2 i 170.1 g 155.6 g 146.8 ft 149.8 ! 145.5{P) I 148.2(P) j59.7(P) i 152.7(P) ~ !82.8(P) I I ! ! I I I I ! I ! _: ·-!""--,,~~:-----] * Preliminary index used Change % Preliminary * 118.3 152.7 34.4 29.1% 5/27/2014 EDCO Disposal Corporation 2 - 1 1 Data extracted on: March 7, 2014 (2:06:01 PM) Producer Price Index Industry Data Series Id: PCU336120336120 Industry: Heavy duty truck mfg Product: Heavy duty truck mfg Base Date: 200312 Download: f""vear~ ='"liirT"l=er Mar Apr May ,Jun Ju1. Aug :)ep ua: Nov uec: 'JUH1u81"'1 1 2004 101.3 ! 101.3 101.3 101.5 101.5 101.9 101.8 102.4 102.9 103.8 103.3 103.4 102.2 § ! 2oos 104.2 I 104.5 104.5 105.3 105.6 105.7 106.6 107.7 107.3 108.3 108.3 108.3 106.4 : 2006 108.3 i 108.5 108.8 110.2 110.2 110.3 110.3 110.5 110.3 111.4 113.2 113.2 110.4 2~.w \ 2007 113.3 i 113.3 113.3 116.3 116.3 116.3 116.2 116.3 116.3 116.3 116.4 116.4 115.5 1 2008 117.8 ! 117.8 117.9 118.1 118.1 118.7 118.8 118.8 119.1 120.4 120.5 120.5 118.9 r 2oos 123.1 I 123.3 123.3 123.3 123.9 124.1 124.1 125.3 125.3 125.6 125.2 126.2 124.4 ! 2010 126.2 ! 126.2 126.2 126.2 126.2 129.4 129.5 129.2 129.4 129.6 129.8 129.8 128.1 l 2011 130.4 ! 130.1 130.1 130.1 130.6 130.6 131.3 131.3 131.4 132.5 132.7 132.7 131.2 r 2012 1 133.6 1 133.9 133.9 134.4 134.6 134.8 134.7 134.7 134.7 134.7 135.3 , 135.5 134.6 ! 2013 i 136.1 I 135.8 135.6 135.2 136.1 136.9 137.1 136.8 136.9 137.9(P) 138.l(P) 138.2(P) 136.7(P) f!'"' '"'*' .. _,,,. ..... _""""'"'"" l 2014 138.7(P) i ' :f,'.!r!!l~T~~· ~!~.l~E.~~!,~~~.!!~ect"!o ~~~i~.n.~ol!!~.2~gi,~1 P.~2!!.~~on. ~~~-~"~'""~"~=-"'~~~-~~~~·=~~~,~~=-"='·~·=} * Preliminary index used 5/27/2014 Change % Preliminary * 134.4 136.7 2.3 1.7% EDCO Disposal Corporation 2 - 1 2 Puente MSW final 5/23/2014 Universal Waste Systems, Inc. EXHIBIT SB Tip Fees Projected 7/1/2010 7/1/2011 7/1/2012 7/1/2013 7/1/2014 $ 38.26 $ 38.26 $ 38.41 $ 38.41 $ 45.75 uws 2 - 1 3