RPVCCA_SR_2011_06_21_04_Residential_Solid_Waste_&_Recycling_Rate_Adjustment_Universal_Waste_Systems
RANCHO PALOS VERDES
PUBLIC HEARING
Date: June 21, 2011
Subject: Residential Solid Waste and Recycling Rate Adjustments for
Universal Waste Systems, Inc. for FY11-12
Subject Property: Citywide
1. Declare the Hearing Open: Mayor Long
2. Report of Notice Given: City Clerk Morreale
3. Staff Report & Recommendation: Senior Administrative Analyst Ramezani
4. Public Testimony:
Appellants: N/A
Applicant: Universal Waste Systems Inc.
5. Council Questions:
6. Rebuttal:
7. Declare Hearing Closed: Mayor Long
8. Council Deliberation:
9. Council Action:
W:\AGENDA\Public Hearing Formats\public hearing format Council- Universal Waste Form 25.doc
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CITY OF RANCHO PALOS VERDES
REVIEWED:
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
RAY HOLLAND,DIRECTOR OF PUBLIC WORK
JUNE 21,2011
RESIDENTIAL SOLID WASTE AND RECYCLING RATE
ADJUSTMENT FOR UNIVERSAL WASTE SYSTEMS,INC.
FOR FY 11-12
CAROLYN LEHR,CITY MANAGER ~
Project Manager:Lauren Ramezani,Sr.Administrative Analyst ~
RECOMMENDATIONS
1.Approve the maximum permissible rates that Universal Waste Systems,Inc. can
charge single-family automated curbside customers in FY 11-12.These maximum
rates to match EDCO Disposal Corporation's single-family automated carts maximum
rates.
2.Approve the maximum permissible rates that Universal Waste Systems,Inc. can
charge multi-family,manual backyard and manure customers in FY 11-12.
3.Match Universal Waste Systems,Inc.'s distribution of Collector Fee and
Environmental Fee percentages among City funds,to EDCO Disposal Corporation's
approved distribution percentages.
BACKGROUND
The City has exclusive residential solid waste and recycling agreements with EDCO
Disposal Corporation (EDCO)and Universal Waste Systems (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.
The City sets the cap for the maximum allowable rates UWS and EDCO can charge.Per
their residential agreements,UWS and EDCO are eligible for annual adjustments in the
maximum permissible rates they can charge.The increases are based on national
published price indices and solid waste disposal facility gate rates.Such requests are due
to the City by March 30 of every year.
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UWS Public Hearing
June 21,2011
Page 2
UWS and EDCO both submitted their requests for a rate adjustment for FY 11-12 prior to
that deadline.A Notice of this Public Hearing was published in the Palos Verdes
Peninsula News on June 9,and June 16,2011.
DISCUSSION
During the recent residential contracts procurement process,one of the City's goals was
providing identical CityWide maximum rates (caps)for automated curbside collection.
Therefore,when City Council approved UWS's residential agreement in 2009,that
approval was contingent on the cap for UWS's automated curbside rates matching the
cap for EDCO's automated curbside rates.The maximum permissible FY 11-12 curbside
rates were discussed in EDCO's staff report and UWS will match EDCO's capped rates.
Therefore,this report will focus on UWS's other services which includes manual backyard
collection,manure collection,and multi-family bin service.
The UWS approved rate adjustment methodology (RAM)is based on the average
percentage changes for 12 months (January 2010 to December 2010).New maximum
permissible rates are effective July 1 of the following year.The RAM has two cost
components:a Disposal Cost Component and a Service/Collection Cost Component.
Disposal Cost Component:UWS's disposal cost increases are based on the percentage
increase at the County owned landfills from January 1,2010 to January 1,2011.Disposal
costs at Puente Hills for solid waste did not increase during this timeframe,hence no
change in UWS'disposal component.
Service/Collection Cost Component:UWS's RAM calculates the rate adjustment by
including published national indices from the U.S.Department of Labor,Bureau of Labor
Statistics.They are specifically tailored to solid waste collection operations.They include:
Producer Price Index for fuel (natural gas)and heavy-duty truck manufacturing,and the
Consumer Price Index (CPI).The hourly labor costs are based on approved labor union
contracts.UWS's collection cost component increased 2.5%.Therefore,in the absence
of any disposal cost increases,UWS's FY 11-12 total rate adjustment percentage would
equal 2.5%.See examples of proposed maximum permissible rates below:
Service Level Current Proposed Proposed Proposed Max.
Single-family Max.Max.increase Max.Monthly Rates for
Manual Service Monthly in Monthly Monthly Seniors
Rates Rates for Rates for (10%discount)
FY 10-11 FY 11-12 FY 11-12 FY 11-12
Backyard*$55 $1.38 $56.38 $50.74
Manure 32-gal can $20 $0.50 $20.50 $18.45
*There IS a small select group of manual backyard customers that have a phased-In maximum rate of
$50/month for FY 11-12.
UWS's multi-family accounts would also see a similar 2.5%increase in the cap.For
example,the maximum rate for a 2-yard bin picked up once a week would increase by
$1.73/month from $69.01/month to $70.74/month.
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UWS Public Hearing
June 21,2011
Page 3
Staff and SCS Engineers,the City's AB 939 consultant,have reviewed the data and
calculations provided by UWS,and found them accurate.(See attached spreadsheets
for proposed maximum permissible monthly rates for all Single and Multi-Family service
levels).
UWS representatives will be available at this Council meeting to answer questions.
FEES DISTRIBUTION/ALLOCATION:UWS currently pays the City 12%of their gross
receipts for Collector Fees (estimated at $32,000/year)and 3%for Environmental Fees
(estimated at $8,000/year).The proposed rate adjustment,if approved,would increase
UWS'gross receipts by 2.5%.Hence,there will be a slight increase in the total fees paid
by UWS to the City.
The distribution of the fees is at the discretion of the City Council.Staff proposes to have
the same distribution of the Collector and Environmental Fee percentages among City
funds as EDCO does.Additionally,UWS provides the City an annual Recycling Rebate
of $16,000,which is deposited in the Beautification-Recycling Fund.Similar to EDCO,
there will be no change in the Recycling Rebate amount in FY 11-12.
ALTERNATIVE
The City Council may change the proposed Collector Fee,Environmental Fee and/or
Recycling Rebate distribution among City funds as otherwise deemed appropriate.
FISCAL IMPACT
Approving the staff recommendations would:
•Increase UWS's FY 11-12 maximum permissible monthly rates for single-family
curbside automated customers by 3.7%,and
•Increase UWS's FY 11-12 maximum permissible monthly rates 2.5%for multi-
family,manual backyard,and manure customers.
•Match UWS's distribution'of Collector and Environmental Fee percentages among
City funds,to EDCO's approved distribution percentages.
Attachments:UWS's rate adjustment calculations
W:\Pam\Staff Reports\2011\6-21-11\UWS rate adjustment\UWS rate adjustment fy 11-12 final.doc 4-4
Universal Waste Systems,Inc.
Current Single-Family Maximum not to Exceed Rates
FY 10-11 Effective 7/1/2010
Universal Waste Systems,Inc.
Proposed Single-Family Maximum not to Exceed Rates
FY 11-12 Effective 7/1/11
Increase 2.50%Backyard,MF,
and Manure
Monthly Manual Service Rates
Backyard Service for refuse,recycling,and $55.00
IQTeen waste *-per home ner month
Manure 32-gal customer-provided can (per $20.QO
can ner 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-
Size:o:allon
Standard $17.44 $22.44 $27.44
Service,based
on refuse cart
size
Additional $6.00 $8.00 $10.00
Refuse Cart
Additional n/a n/a n/a
Recycling Cart
Additional $2.00 nla $4.00
Green Waste
Cart (over
three carts)
Other Cart Rates and Services (Charged in Addition to
Monthly Cart Service Rates)
Backyard Service -per home per month,all $6.16
cart sizes
Senior Rate Reduction 10%
Low-Income Rate Reduction 5%
Annual Payment Rate Reduction 5%
Additional Special Overage Pickup for $5.00
Automated Cart Customers (in excess of two
pickups per year),per pickup
Additional Bulky Item pickups (in excess of $25.00
three free pickups per dwelling unit per year),
per item
Cart Exchange (after free-exchange period),$15.00
per reauest
Cart Re-delivery Fee (if carts are pulled for $25.00
non-payment,one charge for redelivery of all
carts)
Re-Start Fee -after voluntary suspension of $15.00
service,if carts have not been pulled,per re-
start
•Per Section 6.8 of agreement,phase~in select rate of $45/month
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Monthly Manual Service Rates
Backyard Service for refuse,recycling,and $56.38
Preen waste >\"-ner home OPT month
Manure 32-gal customer-provided can (per $20.50
can OPr 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-
Size:o:allon
Standard $18.09 $23.27 $28.46
Service,based
on refuse cart
size
Additional $6.22 $8.30 $10.37
Refuse Cart
Additional free free free
Recycling Cart
Additional $2.07 nla $4.15
Green Waste
Cart (over
tbrDD'C'_'
Other Cart Rates and Services (Charged in Addition to
Monthly Cart Service Rates)
Backyard Service -per home per month,all $6.39
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),per pickup
Additional Bulky Item pickups (in excess of $25.93
three free pickups per dwelling unit per year),
per item
Cart Exchange (after free-exchange period),$15.56
er reauest
Cart Re-delivery Fee (if carts are pulled for $25.93
non-payment,one charge for redelivery of all
carts)
Re-Start Fee -after voluntary suspension of $1556
service,·if carts have not been pulled,per re-
start
·Per Section 6.8 of agreement,phase-in select rate of $50/month
Increase
Automated
====3=_=70=°;;;,%Cart service
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EXHIBIT 4
Universal Waste Systems,Inc.
Multi-Family
INITIAL MAXIMUM (Not to Exceed)RATES for FY 10-11
-~•.~.._._.-~.-.._----..-----_._~._•.1--~,__...._~__..)......_~...,_....a-....
Monthly Bin Rates
Pickups per week
Container
Size 1 2 3 4 5 6 Extra Pickups
2-vard $69.01 $96.20 $122.92 $136.68 $176.82 $203.77 $15.00
3-vard $96.03 $122.95 $149.91 $176.86 $218.27 $245.37 $25.00
4-vard $109.55 $136.45 $176.91 $218.31 $263.75 $305.61 $35.00
Manure 3-$125.00 $25.00
yard
Recycling No charge
bin/cart
Other Bin Service Rates -Per Month
Pickups per week
Bin Service 1 2 3 4 5 6
Locking Bin $7.1 $8.8 $10.13 $11.38 $12.6 $13.8
Service
Scout Vehicles $26.3 $45.23 $63.7 $82.~$101.1/$119.8/
Bin Push-Out $39.95 $71.1 $96.05 $120.9 $145.9 $170.8E
Service (35
feet or further)
Additional Service Charges Rate Per
Service
Portuguese Bend Beach Club -beach litter $2,000.00
container collection (not to exceed)
Bin Cleaning Per Bin $25.00
Bin Overage Clean-up (following one written $25.00
warning)Per Clean Up
Additional Bulky Item pickups (in excess of $25.00
three free pickups per dwelling unit per year)
Emergency Service Rates -one crew and one $85.00
collection truck (per Hr)
EXHIBIT 4
Universal Waste Systems,Inc.
Multi-Family
MAXIMUM (Not to Exceed)RATES for FY 11-12
......u ..............._~._u .........._n.............___........u .I ........, _.........................'J_U__..., _......_.
Monthly Bin Rates
Pickups per week
Container
Size 1 2 3 4 5 6 Extra Pickups
2-vard $70.74 $98.61 $125.99 $140.10 $181.24 $208.86 $15.38
3-yard $98.43 $126.02 $153.66 $181.28 $223.73 $251.50 $25.63
4-vard $112.29 $139.86 $181.33 $223.77 $270.34 $313.25 $35.88
Manure 3-$128.13 $25.63
Iyard
Recycling .Nocharge
bin/cart
Other Bin Service Rates -Per Month
Pickups per week
Bin Service 1 2 3 4 5 6
Locking Bin $7.30 $9.11 $10.38 $11.66 $12.94 $14.22
Service
Scout Vehicles $27.00 $46.36 $65.33
$84.50 $103.69 $122.86
Bin Push-0ut $40.95 $72.90 $98.45 $124.01 $149.57 $175.13
Service (35
feet or further)
Additional Service Charges Rate Per
Service
Portuguese Bend Beach Club -beach litter $2,050.00
container collection (not to exceed)
Bin Cleaning Per Bin $25.63
Bin Overage Clean-up (following one written $25.63
warning)Per Clean Up
Additional Bulky Item pickups (in excess of $25.63
three free pickups per dwelling unit per year)
Emergency Service Rates -one crew and one $87.13
collection truck (per Hr)
Fees FY 10-11
Amount
Collector
Environmental
Recycling Rebate $16,000
12%of gross
3%of gross
Proposed Fees FY 11-12
Amount
Collector
Environmental
Recycling Rebate $16,000
12%of gross
3%of gross
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UWS Residential
EXHIBIT5A
Unviersal Waste Systems,Inc.(UWS)
RATE ADJUSTMENT FORMULA -Effective 7f112011
Step One'Calculate percentage change in indices
A B C
Old Index Value (prior Percent Change In
Row Adjustment Factor Index year's "New Index")New Index Value 2011 Index «Column B/
2010 ColumnA)-1)
1 Labor (hrlv rate)(1)$20.15 $20.80 3.2%
2 Fuel (natural gas)(2)160.0 185.1 15.7%
3 Equipment (3)124.4 128.1 3.0%
4 Disposal Component (4)$38.26 $38.26 0.0%
5 All Other (5)219.235 ........221.337 1.0%
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 23%3.2%0.7%
7 Fuel 6%15.7%0.9%
8 Equipment 17%3.0%0.5%
9 Disoosal 17%0.0%0.0%
10 All Other 37%1.0%
11 Total Rate Adjustment 100%f:S0.f£ff:&Ja.''o/&t~,.>h ..........
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
FYIo-11 (Row 13,Column F)Column I)J)FY11/12
12 Residential Service $·55.00 2.5%$1.38 $56.38BackvardManual)'
13 Curbside Cart Service-64 gal"1$22.#3.7%$0.83 $23.27
14 3 Yd Bin,Ix week $96.03 2.5%$2.40 $98.43
15 3 Yd Bin 2x week $122.95 2.5%$3.07 $126,02
16 Extra Empty - 2 vd 10 2.5%$0.38 $15.38
17 Extra Bu1kv Item 10 2.5%$0.63 $25.63
18 Extra Bin Oeaning 10 2.5%$0.63 $25.63
•Phase-m Select rate of $45 per Section 8.6 of agreement m FY 10-11 and $50 m FY 11-12.
..UWS's curbside rates have to match EOCO's curbside rates and their %of increase.
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
(Column D)Adjustment 100%(to be used for
used for FY 11-12 (Column E)KxColwnnL)ColumnM)
FY12/13)
19 Labor 23.0%3.2%0.7%23.7%23.1%
20 Fuel 6.0%15.7%0.9%6.9%6.7%
21 Equipment 17.0%3.0%0.5%17.5%17.1%
22 Disposal 17.0%0.0%0.0%17.0%16.6%
23 All Other 37.0%1.0%0.4%37.4%36.5%
24 Total 100.0%102.5%100.0%
(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.
(3)Producer Price Index,PCU336120336120,Heavy duty truck manufacturing -average annual change.
(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.
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