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RPVCCA_CC_SR_2012_06_05_02_Residential_Solid_Waste_EDCO RANCHO PALOS VERDES PUBLIC HEARING Date: June 5, 2012 Subject: Residential Solid Waste and Recycling Rate Adjustment for EDCO Disposal Corporation for FY12-13 Subject Property: Citywide 1. Declare the Hearing Open: Mayor Misetich 2. Report of Notice Given: City Clerk Morreale 3. Staff Report & Recommendation: Senior Administrative Analyst Ramezani 4. Public Testimony: Appellants: N/A Applicant: EDCO Disposal Corporation 5. Council Questions: 6. Rebuttal: 7. Declare Hearing Closed: Mayor Misetich 8. Council Deliberation: 9. Council Action: W:\AGENDA\Public Hearing Formats\public hearing format Council- EDCO Residential.doc 2-1 CITY OF MEMORANDUM RANCHO PALOS VERDES REVIEWED: TO: FROM: DATE: SUBJECT: HONORABLE MAYOR &CITY COUNCIL MEMBERS 1.nrOM ODOM,DIRECTOR OF PUBLIC WORK~ JUNE 5,2012 RESIDENTIAL SOLID WASTE AND RECYCLING RATE ADJUSTMENTS FOR EDCO DISPOSAL CORPORATION FOR FY 12-13 CAROLYN LEHR,CITY MANAGER ~ Project Manager:Lauren Ramezani,Sr.Administrative Analyst >eL- RECOMMENDATIONS 1.Approve the maximum permissible rates that EDCO Disposal Corporation can charge single-family and multi-family customers in FY 12-13. 2.Increase the City's FY 12-13 Collector and Environmental Fees,paid by EDCO by $10,850 and $2,745,respectively. BACKGROUND The City has exclusive residential solid waste and recycling agreements with EDCO Disposal Corporation (EDCO)and Universal Waste Systems,Inc.(UWS).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. Per their residential agreements,EDCO and UWS are eligible for annual adjustments to the maximum permissible rates they can charge.The increases are based on national published price indices and solid waste disposal facilities'gate rates.The agreements only allow a straight pass-through of costs;no other increases are permitted. 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 12-13 prior to that deadline.The City establishes the cap for the maximum permissible rates EDCO and UWS could charge their residential customers.Staff placed notices of the public hearing in the Palos Verdes Peninsula News on May 24,and May 31,2012.UWS's request is addressed in a separate staff report. 2-2 EDCO Public Hearing June 5,2012 Page 2 DISCUSSION On May 2,2012,staff met with the Solid Waste Subcommittee comprised of Mayor Misetich and Councilmember Duhovic.After review of the exhibits,discussions with staff and EDCO representatives,the Subcommittee approved staff's recommendation to bringing this rate adjustment request to the full City Council for consideration and approval. The City has a specific rate adjustment methodology (RAM),which was recommended by the City's procurement consultant and included in the City's Request for Proposals in 2009.The RAM was subsequently approved by the City Council when the EDCO agreement was approved.Similar methodologies are being used by other cities in other current solid waste franchise agreements.The RAM outlines the acceptable cost variables and provides detailed guidelines on how future rate adjustments are calculated. This helps'with calculation accuracy while also protecting the City from sudden rate spikes. Furthermore,in accordance with Section 6.3 of EDCO's agreement (see attached): "Adjustments to the maximum rates is subject to the approval of the City Council at a public hearing,although the Council's discretion shall be limited to determining,based on substantial evidence,whether the requested maximum rate adjustment meets the requirements as set forth herein." The RAM is based on the average percentage changes,both increases and decreases, for a 12 month period.The rate adjustment evaluation period effective FY 12-13 begins with the calendar year 2011 (January 2011 to December 2011).If approved,the new maximum permissible rates become effective on July 1,2012,six months after the evaluation period.The RAM has two cost components:a Service/Collection Cost Component,and a Disposal Cost Component. 1)Service/Collection Cost Component:EDCO's service/collection cost increases are based on the percentage of increases/decreases in several national indices from the U.S. Department of Labor,Bureau of Labor Statistics for calendar year 2011.These selected indices are specifically tailored to solid waste collection operations.A weighted average of the various service/collection changes is calculated and used in the RAM formula. The indices include: Index /commodity %Change in 2011 qonsumer Price Index (CPI)Increased 1.7% Producer Price Index (PPI)for fuel-Natural Gas *Decreased 7.3% PPI for heavy-duty truck manufacturing Increased 2.4% Hourly labor costs **Increased 4.8% Total Weighted Average Increased 1.9% Service/Collection Component (EXhibit 5A,Row 14G) *Comparatlvely,fuel Increased 15.7%In FY 2010. **Based on previously approved labor rates. W:\LAUREN\STAFFRPTIREFUSE\2012\EDCO rate adjustment fy 12-13 .doc 2-3 EDCO Public Hearing June 5,2012 Page 3 2)Disposal Cost Component:EDCO's disposal cost increases are based on the percentage increases at the county owned disposal facilities for calendar year 2011.A straight average is not used.A weighted average of the various disposal rate changes is calculated and used in the RAM formula. 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. Furthermore,in order to incentivize increased diversion and provide rate stability,the disposal RAM does not adjust for fluctuations in the weight of the tonnage disposed.The total weighted average disposal cost component changed from $23.81 in FY 10-11 to $24.63 in FY 11-12. The disposal facilities list and gate rate include: Disposal Facility Gate Rate $Gate Rate % Change/ton Change/ton Puente Hills-Solid Waste $38.26/ton to 0.4% $38.41/ton Puente Hills-Green Waste $22.95/ton 0% Carryover from FY 10-11 Disposal Cap of N/A 2% 10%*** County of Orange -Solid Waste****$22.13/ton to 2.5% $22.68/ton Southeast Resource Recovery Facility $45/ton to 4.4% (SERRF)-Long Beach waste to energy facility $47/ton Total Disposal Cost Component $23.81 to $24.63 3.4% (Weighted (Exhibit 5A,Row 13G) Average} *~*The agreement has an annual disposal increase cap of 10%.In FY 10-11,green waste disposal at Puente Hills increased more than 10%.Due to the cap,the excess (2%)carried over to FY 11-12. ****EDCO has an importation agreement with County of Orange until 2016.This should help stabilize landfill rates for the City after Puente Hills'planned closure in 2013. Approximately 27%of EDCO's overall costs are related to disposal costs and 73% related to service/collection costs.Therefore,EDCO's total weighted residential rate adjustment reflecting both disposal and service cost components is 2.3%.(See attached ~able labeled Exhibit 5A,Row 24 G) Therefore,in accordance with these indices,the disposal facilities'gate rates,and per the provisions of the City agreement with EDCO,a 2.3%increase is being requested.This requested increase allows EDCO to pass-through the cost increases they incurred in 2011.There are no further increases or additional costs added to the rates. W:\LAUREN\STAFFRPnREFUSE\2012\EDCO rate adjustment fy 12-13 .doc 2-4 EDCO Public Hearing June 5,2012 Page 4 Examples of EDCO's proposed maximum rates for FY 12-13 are listed below: Service Level Current Proposed Proposed Proposed Max. Single-family Max. Max.increase Max.Monthly Rates for (one trash cart)Monthly in Monthly Monthly Seniors Rates Rates for Rates for (10%discount) FY 11-12 FY 12-13 FY 12-13 FY 12-13 Curbside 35-gallon $18.09 $0.42 $18.51 $16.66 Curbside 64-gallon $23.27 $0.54 $23.81 $21.43 Curbside 96-gallon $28.46 $0.65 $29.11 $26.20 Multi-family accounts would have a similar proposed maximum 2.3%increase.For example,the maximum rate for a 3-yard bin picked up once a week would increase by $2.59/month from $112.41/month to $115/month.Comparatively,for FY 11-12,largely due to fuel costs,EDCO's rate increase was 3.7%. Staff and HDR Engineering,the City's AS 939 consultant,have reviewed the data and calculations provided by EDCO,and found them accurate.(See attached spreadsheets for proposed maximum permissible monthly rates for all single and multi-family service levels).Additionally,the neighboring City of Rolling Hills Estates has recently received a request from Waste Management for a FY 12-13 residential solid waste and recycling rate increase of 2.7%. EDCO representatives will be available at this Council meeting to answer questions. Fee Distribution/Allocation:EDCO currently pays the City an annual Collector Fee of $471,835.The agreement automatically results in the City fees increasing by the same percentage as the maximum rate increase.If staff's recommendations are approved,the City's Collector Fee would increase 2.3%,from $471,835 to $482,685 (or by $10,850)in FY 12-13.The allocation of the fee is at the discretion of the City Council.Staff proposes continuing the Collector Fee's FY 11-12 allocation for FY 12-13: Collector Fee Fund Current Current Proposed Proposed Allocation Percentage Amount Increase Amount FY 11-12 FY 11-12 FY 12-13 FY 12-13 General Fund-Various 70%$311,100 $7,155 $318,255 Waste Reduction Fund 30%$160,735 $3,695 $164,430 Total 100%$471,835 $10,850 $482,685 Additionally,staff recommends continuing depositing 100%of the Environmental Fee into the Stormwater Quality Fund for NPDES program implementation,mandates and street s~eeping.The FY 12-13 fee would increase by $2,745,from $119,255 to $122,000. W:\LAUREN\STAFFRPnREFUSE\2012\EDCO rate adjustment fy 12-13 .doc 2-5 EDCO Public Hearing June 5,2012 Page 5 Finally,EDCO provides the City an annual Recycling Rebate of $280,000,which is deposited in the Beautification-Recycling Fund.This amount is based on the current California Redemption Value (CRV)of beverage containers,and will change only when California changes its CRV amounts.The CRV amounts have not changed since 2007. ALTERNATIVE The City Council may choose to change the proposed Collector Fee,Environmental Fee, and/or Recycling Rebate allocation as otherwise deemed appropriate. FISCAL IMPACT Approving the staff recommendations will increase General Fund revenue by $9,900 and Waste Reduction Fund revenue by $3,695 for FY 12-13 .. Attachments:EDCO's Agreement Sections 6.1 to 6.4.5 Tables -Exhibit SA (calculations) -Spreadsheet with EDCO's current and proposed rates -National Indices -Disposal Facility Gate Rates -2009-2011 Tonnage Figures W:\LAUREN\STAFFRPl\REFUSE\2012\EDCO rate adjustment fy 12-13 .doc 2-6 / \. ""'" EDCO AGREEMENT article 6 ARTICLE 6 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 cremt: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 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 arulUal adjustment to the maximum rates shown in Exhibit 4.The Contractor shall submit its request in writing, to be received by City in Person or via certified mail or by other means approved by the City,by the preceding March 30,and shall be based on the method of adjustment described in Section 6.4.Failure to submit a w:p.tten request by March 30 sha,ll result in' Contractor waiving the right to request such an increase for the subsequent Rate Year. Missed rate adjustments may 'hot be added to rate adjustment ~pplicationsin ensuing [ years.Adjustment to the maximum rates is subject to the approval of the City Council at a public hearing,although the Council's discretion shall be limited to determining, based on substantial evidence,whether the requested maximum rate adjustment meets the requirements as set forth herein. November 24,2009 -75-City ofRancho Palos Verdes-EDCO 2-7 Article 6-Cont'd 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 described below and the formulas shown in Exhibit 5, subject to review and approval of City.All future adjustments are to be effective July 1 of the same year. 6.4.2 Cost Components for Rate Adjustment Indices The 'approved rates consist of the following cost component categories.Each cost component may be adjusted by the change in the corresponding index below.See Se ti 643£d iled d'dcon..or eta rate a llustmentproce ures, Cost Catego:ry Initial Weightings Rate Adjushnent Factor Subtotal Total Service Component 73% Classification to be in effect as of the date the new rates go into effect (January 1st)under the Agreement between local haulers and Package and General Utility Drivers Local Union 396, Labor 29%International (1) Producer Price Index WPU 0531,Fuels and related products and Fuel 8%power,natural g:as Producer Price Index,PCU336120336120,Heavy duty truck Equipment 21%manufacturing: Consumer Price Index for All Urban Consumers (CUUROOOOSAOLlE),all items less food and energy index -U.S. All Other 42%city averag:e Subtotal 100% Disposal Component (2)27% Actual change in Puente Hills green waste rate (new index to be Green Waste (3)actual selected after closure of Puente Hills Landfill,see Section 6.4.5) Transformation (3)actual Actual chanp;e in gate rate at SERRF waste to ener2:V facility Actual change in gate rate at Puente Hills Landfill (or Puente Hills Other Landfills (3)actual Transfer Station after closure of Puente Hills Landfill) O.c.Landfill >50%(4)Actual chang:e in Orange County Landfill System import rate Sub-total 100% Total 100% November 24,2009 -76-City ofRancho Palos Verdes-EDCO 2-8 Article 6-cont'd (1)Under the agreement terminating September 30,2012,these rates are: Contract Date 4/01/10 4/01/11 4/01/12 Hourly Rate $20.1S $20.80 $21.80 Rate Adiustment Date n/a 7/01/11 7/01/12 Change to Labor Component n/a 3.2%4.8% Comparable rates from subsequent labor agreements will similarly apply.If a subsequent labor contract has not been executed prior to a rate adjustment calculation, the percentage change in the labor cost component used in the prior year's adjustment calculation will be used.In the event that the estimated labor component change is higher or lower than the actual change after a new labor contract is executed,no compensation adjustment shall be provided for prior periods. (2)Annual increase in total disposal component (including Green Waste)in anyone year shall be limited to no more than 10%,with non-permitted increases permitted to be applied to any subsequent year's increase to the extent the annual increase does not exceed 10%. (3)Annual increase in disposal component exclusive of disposal at the Orange County Landfill System is limited to no more than 10%,with non-permitted increases permitted to be applied to any subsequent year's increase to the extent the annual increase does not exceed 10%. (4)For rate adjustment purposes,for the term of Contractor's import agreement with the Orange County Landfill System,tonnage assumed to have been directed to the Orange County Landfill System shall be equal to the higher of actual tons directed or 50%of total Refuse and Green Waste tons. 6.4.3 Rate Adjustment Steps All rates will be adjusted using the same methodology and cost component weightings. See Exhibits SA,SB and Sc. Exhibit SA,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. Example disposal component calculations are included in Exhibit 5B and Exhibit SC: November 24,2009 -77-City ofRancho Palos Verdes-EDCO 2-9 Article 6-Cont'd Exhibit 5B,Step 1:Determine the average disposal cost per ton for non-Orange County Landfill disposal. Exhibit 5B,Step 2:Determine whether the change in the cost per ton of non- Orange County Landfill disposal exceeds the maximum allowable increase of 10%.If so,reduce the new non-Orange County Landfill disposal index to reflect no more than a 10%increase. Exhibit 5B,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 5B,Step 4:Determine whether the change in the total Disposal Component exceeds the maximum allowable overall increase of 10%.If so, reduce the new disposal index to reflect no more than a 10%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 I,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. I \ November 24,2009 -78-City ofRancho Palos Verdes-EDCO 2-10 Article 6-Cont'd 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 six percent (6%)increase per year.H the increase in anyone year is higher than six percent (6%),the percentage increase not permitted may be added to any subsequent year's increase to the extent that a subsequent increase is below six percent (6%). ii.Disposal Component. The change in the disposal componentis equal to the calculation on Row 5 of Exhibit SA,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 SA,by the cost component weightings for the service and disposal components. Exhibit SA,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 SA,Step Four -Recalculate weightings for the following year based upon these changes. New or increased Feder State or locally i osed per ton disposal fee surcharges are excluded from the 10%per ear disposal c mponent increase caps. 6.4.5 Green Waste Index Mter the Puente Hills Landfill ce s to accept Green Waste,City and Contractor will mutually agree upon a replacem Green Waste index.H such an index cannot be agreed to,adjustments shall be ase upon changes in Contractor's actual incremental cost to transport and dispos f Gree Waste,and Contractor shall provide City with access to all data necessar to assist in termining actual costs. November 24,2009 -79-City ofRancho Palos Verdes-EDCO 2-11 EDca Disposal Corporation EXHIBIT5A RATE ADJUSTMENT FORMULA -Effective 7N2012 Step One'Calculate percentage change in indices A B C Old Index Value Percent Change In Row Adjustment Factor Index (prior year's "New New Index Value Index «Column BIIndex")2012 Column A)-1) 2011 Service Component 1 Labor (hrly rate)(1)20.80 21.80 4.8% 2 Fuel (Natural Gas)(2)185.1 171.6 -7.3% 3 Equipment (3)128.1 131.2 2.4% 4 All Other (CPI)(4)221.337 225.008 1.7% Exhibit SA (calculations) 5 IDisposal Component (5)$23.81 24.63 3.4% D Step Two:Determine components E F G Row Adjustment Factor Cost Component Weighted as a %of Component Total (6) Percent Change In Total Weighted Change Total Weighted Change, Index (from Column (Column D x E)Subject to Increase Cap C) Service,Component 9 Labor 29.0%4.8%1.4% 10 Fuel 9.0%-7.3%-0.7% 11 Equipment 20.9%2.4%0.5% 12 All Other 41.1 %1.7%-=0=.7=%=--_-lFt~~~t~~t~~~~?~/~:~t~~~t~:~);;;;;,:t"!~t~:t~~:~~~::::::/~:~~~~~~~~~~~~~t~~:~r t;::3-+S,;.;e.:.rv-i-ce-S-u-b--T-o-ta-I----t----l...:0"'0"".0=o/<""o--_1.9%1.9%(7) [illDisposal Sub-Total 100%I 3.4%I 3.4%3.4%(8) Total Rate Adjustment 22 Service 23 Disposal 24 Total Rate Adjustment 72.6% 27.4% 100.0% Step Three:Apply percentage change to sample rates 1.4% 2.3%Rate Increase H I J K Existing Customer Total Weighted Rate Increase or Adjusted Max.Rate Row Rate Category Maximum Rate Percentage Change Decrease (Column H X (Column H +Column J) FY201lj12 (Row 13,Column F)Column!)FY2012/13 20 Residential Service -64 gal $23.27 2.3%$0.54 $23.81 21 Additional Refuse Cart $8.30 2.3%$0.19 $8.49 22 3 Yd Bin,lx week $112.41 2.3%$2.59 $115.00 23 3 Yd Bin 2x week $144.15 2.3%$3.32 $147.47 24 Extra Pick-up - 2 yd $57.51 2.3%$1.32 $58.83 25 Extra Bulky Item $25.93 2.3%$0.60 $26.53 26 Extra Bin Cleaning $46.67 2.3%$1.07 $47.74 Step Four:Re-weight cost components L M N 0 P Cost Component Percent Change as Increase in Cost Cost Component Cost Components Row Adjustment Factor Index Weighting (Column Applied to Rate Components (Column L Increased (Column L +Reweighted to Equal D)Adjustment x Column M)ColumnN)100%(To be used for (Column E)FY2013/14) 27 Labor (1)29.0%4.8%1.4%30.4%29.8% 28 Fuel (2)9.0%-7.3%-0.7%8.3%8.2% 29 Equipment (3)20.9%2.4%0.5%21.4%21.0% 30 All Other (4)41.1%1.7%0.7%41.8%41.0% 31 Service Sub-Total 100.0%101.9%100.0% 38 Service Component 72.6%1.9%1.4%74.0%72.3% 39 Disposal Component 27.4%3.4%0.9%28.3%27.7% 40 Total 100.0%102.3%100.0% (1)Driver AlB rate from Agreement between local haulers and Package and General Utility Drivers Local Union 396,International Brotherhood of Teamsters. (2)Proc!ucer Price Index,WPU 0531 not seasonally adjusted,Fuels and related products and power,natural gas -average annual change. (3)Producer Price Index,PCU336120336120,Heavy duty truck manufacturing -average annual change. (4)Consumer Price Index for All Urban Consumers (CUUROOOOSAOLlE),all items less food and energy index -US.city average -average annual change. (5)As determined in Exhibit5B.It is a total weighted average of the gate rates. (6)This column comes from Column P of the previous year's rate adjustment worksheet. (7)Service component change is limited to 6%in anyone year. (8)Increase in Disposal Component is capped at 10%. 5/30/2012 City of Rancho Palos Verdes/EDCO2-12 City Of Rancho Palos Verdes Requested FY 12-13 Rate Adjustment EDCO Disposal Corporation EDCO's Current Rates Effective 7f112011 SINGLE-FAMilY EDCO's Proposed Rates Effective 7f112012 SINGLE-FAMilY 2.3% EDCO %Increase: •Including all fees retained by,or paid 10,City. 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 $18.51 $23.81 $29.11 Additional Refuse Cart $6.36 $8.49 $10.61 I(per cart) Additional Recycling Cart Free Free Free Additional Green Waste $2.12 n/a $4.25 Cart (above three) Other Cart Rates and Services (Charged in Addition to Monthly Carl Service Rates) Backyard Service -per home per month,all cart $6.54 sizes Pup Service -per home per month,all cart sizes $5.45 Backyard and Pup Services -per home per $8.72 month,all cart sizes Senior Rate Reduction 10% Low-Income Rate Reduction 5% Annual Payment Rate Reduction 5% Additional Special Overage Pickup for $5.31 Automated Cart Customers (in excess of two pickups per year) Additional Bulky Item pickups (in excess of three $26.53 free pickups per dwelling unit per year) Cart Exchange (after free-exchange period)$15.92 Cart Re-delivery Fee (if carts are pulled for non-$26.53 payment,one charge for redelivery of all carts) Re-Start Fee -after voluntary suspension of $15.92 service,if carts have not been pulled Including all fees retained by,or paid to,City. 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 $18.09 $23.27 $28.46 Adg.itional Refuse Cart $6.22 $8.30 $10.37 (ner cart) Additional Recycling Cart Free Free Free Additional Green Waste $2.07 n/a $4.15 Cart (above three) Other Cart Rates and Services (Charged in Addition to Monthly Cart Service Rates) Backyard Service -per home per month,all cart $6.39 sizes Pup Service -per home per month,all cart sizes $5.33 Backyard and Pup Services -per home per $8.52 month,all cart sizes Senior Rate Reduction 10% Low-Income Rate Reduction 5% Annual Payment Rate Reduction 5% Additional Special Overage Pickup for $5.19 Automated Cart Customers (in excess of two pickups per year) Additional Bulky Item pickups (in excess of threE $25.93 free pickups per dwelling unit per year) Cart Exchange (after free-exchange period)$15.56 Cart Re-delivery Fee (if carts are pulled for non-$25.93 payment,one charge for redelivery of all carts) Re-Start Fee -after voluntary suspension of $15.56 service,if carts have not been pulled. 5/30/2012 EDCO Disposal Corporation 2 - 1 3 City Of Rancho Palos Verdes Requested FY 12-13 Rate Adjustment EOCO Disposal Corporation EDCO's Current Rates Effective 7f112011 EDCO MULTI-FAMILY EDCO's Proposed Rates Effective 7f112012 EDCO MULTI-FAMILY Following are the Current rates for July 1,2011 through June 30,2012: Monthly Bin Rates Container Size No.Pickups per week Extra 1 2 3 4 5 6 Pickups 2-yard $80.64 $112.38 $144.12 $159.99 $207.61 $221.24 $57.51 3-yard $112.41 $144.15 $175.90 $207.65 $255.24 $265.30 $67.10 3-yard wi compactor $224.81 $288.31 $351.78 $415.29 $510.48 $530.58 $134.20 4-yard $128.34 $160.D2 $207.65 $255.28 $311.01 $330.55 $76.69 4-yard wi compactor $256.67 $320.05 $415.31 $510.55 $619.89 $661.10 $155.45 6-yard $160.08 $214.74 $255.29 $302.91 $352.03 $368.03 $115.03 Recycling bini cart No charge Other Bin Service Rates - Bin Service No.Pickups per week 1 2 3 4 5 6 Locking Bin Service $6.3S $8.5 $9.5 $10.6.:$12.7c $13.84 Scout Vehicles $26.6"$46.8f $67.H $87.3 $107.5~$127.8 Bin Push-Out Service (35 $44.74 $79.8~$109.71 $135.2 $165.0c $197.04 feet or further) Additional Service Charges Rate Per Service Bin Cleaning Per Bin $46.67 Bin Overage Clean-up (following one written $20.74 warning)Per Clean Up Additional Bulky Item pickups (in excess of three $25.93 free pickups per dwelling unit per year)Per Item Emergency Service Rates -one crew and one $88.15 collection truck (per Hr) Current Fees FY 11-12 Collector $471,835 Environmental $119255 Recvclinl!:Rebate $280,000 5/30/2012 Following are the Proposed rates for July 1,2012 through June 30,2013: Monthly Bin Rates Container Size No.Pickups per week.Extra 1 2 3 4 5 6 Pickups 2-yard $82.49 $114.96 $147.43 $163.67 $212.39 $226.33 $58.83 3-yard $115.00 $147.47 $179.95 $212.43 $261.11 $271.40 $68.64 3-yard wi compactor $229.98 $294.94 $359.87 $424.84 $522.22 $542.78 $137.29 4-yard $131.29 $163.70 $212.43 $261.15 $318.16 $338.15 $78.45 4-yard wi compactor $262.57 $327.41 $424.86 $522.29 $634.15 $676.31 $159.03 6-yard $163.76 $219.68 $261.16 $309.88 $360.13 $376.49 $117.68 Recycling bini cart No charge Other Bin Service Rates - Bin Service No.Pickups per week 1 2 3 4 5 6 Locking Bin Service $6.54 $8.72 $9.80 $10.89 $13.08 $14.16 Scout Vehicles $27.24 $47.94 $68.64 $89.35 $110.05 $130.75 Bin Push-Out Service (35 $45.77 $81.72 $112.22 $138.38 $168.89 $201.57 feet or further) Additional Service Charges Rate Per Service Bin Cleaning Per Bin $47.74 Bin Overage Clean-up (following one written $21.22 warning)Per Clean Up Additional Bulky Item pickups (in excess of three $26.53 free pickups per dwelling unit per year)Per Item Emergency Service Rates -one crew and one $90.18 collection truck (Per Hr) Proposed Fees FY 12-13 Collector $482,687 Environmental $121998 Recvclinl!Rebate /Fixed)$280000 eoco Disposal Corporation 2 - 1 4 Producer Price Index-Commodities Original Data Value Series Id:WPU0531 Not Seasonally Adjusted Group:Fuels and related products and power Item:Natural gas Base Date:198200 Years:2001 to 2011 ~xis 1iW~_'_~:~~~~1 'iiJ ,xis FUEL Change %Change Ko \Al\de.d -13.5 -7.29% _1.310 Draft 5/29/2012 EDCO Disposal Corporation 2 - 1 5 Producer Price Index Industry Data Original Data Value Series Id:PCU336120336120 Trucks Heavy duty truck manufacturing Heavy duty truck manufacturing 130.4 I 130.1 I 130.1 I 130.1 I 130.6 I 130.6 I 131.3 I _n __ :Preliminary.All indexes are subject to revision four months after original publication. Change %Change \20u.,J.eJ 3.1 2.42%= Q.LJ f>.h 5/29/2012 EDCO Disposal Corporation 2 - 1 6 Consumer Price Index -All Urban Consumers Original Data Value Series Id:CUUROOOOSAOL 1E Not Seasonally Adjusted Area:U.S.city average Item:All items less food and energy Base 1982-84=100 Period: Years:2001 to 2011 CPI 5/29/2012 Change %Change R 0 '"'"\'"\.J..e.J. 3.671 1.66% \.'1 QJ4 EDCO Disposal Corporation 2 - 1 7 Disposal Facility Gate Rates!Ton EDCO Tip Fees Puente Hills GW Puente Hills MSW SERRF DC Landfill Actual 7/1/2010 $19.95 $38.26 $45.00 $22.12 Actual 7/1/2011 $22.95 $ $38.26 $ $45.00 $ $22.13 $ Projected 7/1/2012 22.95 38.41 47.00 22.68 GW=Green Waste MSW=Municipal Solid Waste (Le.trash) SERRF=SouthEast Resource Recovery Facility in Long Beach (Waste to Energy transformation facility) OC=Orange County Landfill Draft 5/30/2012 EDCO Disposal Corporation2-18 City of Rancho Palos Verdes Annual Residential Tonnage Statistics 2009-2011 (Tonnages are rounded) 1st half of 2nd half of 2011 2009 2010 2010 2010 2011 EDCO WM*WM EDCO EDCO EDCO %of Commodity (tons) (tons) (tons) (tons)(tons)Total Waste (i.e.trash)**15,110 8,170 7,285 15,455 14,335 45% Green Waste 9,225 4,410 5,855 10,260 11,465 36% Recycling (i.e.paper,cans, bottles)5,275 2,490 2,810 5,310 5,850 18% Total Disposal 29,610 15,070 15,950 31,025 31,650 100% *Waste Management serviced the City until June 30,2010. **Disposal figures include transformation tonnages. W:\LAUREN\STAFFRPT\REFUSE\2012\waste tonnages.xls 5/30/2012 EDCO 2-19