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HomeMy WebLinkAboutEDCO Disposal Corporation - Rate Adjustment - Increase - 1988RESOLUTION NO. 15,645 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A TRASH SERVICE RATE INCREASE FOR EDCO DISPOSAL CORPORATION WHEREA.S,the last trash service rate increase for Edco Disposal Corporation, the city's franchised trash collector, was approved in June 1987; and WHEREAS, on May 17, 1988, the County of San Diego raised the rate of the solid waste disposal fee schedule, and Edco Disposal Corporation has requested that this increase be treated as a pass -through cost to its subscribers; and WHEREAS, the new trash service rates would be comparable to those of surrounding cities. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the proposed rate schedule dated July 1, 1988, a copy of which is attached hereto as Exhibit "A", is hereby approved. PASSED and ADOPTED this 14th day of June, 1988. 0-0 George H. Waters, Mayor ATTEST: Ioe Campbell, City Clerk APPROVED AS 'I0 FORM: C/' \ / George H. Eiser, III - City Attorney PROPOSED RATE SCHEDULE 7-1-88 EXISTING PROPOSED MONTHLY MONTHLY RATE RATE RUBBISH AND GARBAGE 1. Residential Per month residential single family properties. 6.75 7.25 7.4% For the second and for each additional residential unit in multiple dwellings which do not exceed four units 5.05 5.45 7.9% 2. Trailer Parks and Motels ($5.00 Minimum) One time per week, per unit, per month 4.80 5.15 7.3% 3. Apartment Houses (No minimum) One time per week, per unit, per month 4.75 5.10 7.47 4. Senior Citizen - Residential Per uviith 5.50 5.90 7.3% (A) PROPOSED RATE SCHEDULE 7-1-88 EXISTING PROPOSED MONTHLY MONTHLY RATE RATE RUBBISH AND GARBAGE (COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS) Up to (2) 40 gallon containers One time per week - per uunth 7.90 8.50 7.6% Up to (2) 40 gallon containers TWo times per week - per month 12.60 13.50 7.1% Up to (2) 40 gallon containers Three times per week - per uuiith 16.20 17.40 7.4% Up to (2) 40 gallon containers Four times per week - per month 19.95 21.50 7.8% Up to (2) 40 gallon containers Daily (six days/Monday thru Saturday) 26.15 28.10 7.5% Additional or unusual accumulation of rubbish (A) 4.75 per 5.10 per 7.47 cubic cubic yard yard PROPOSED RATE SCHEDULE 7-1-88 BOX TYPE REFUSE SERVICE NUMBER COTTFCTION YARDS PER EXISTING PROPOSED BINS FREQUENCY MONTH MONTHLY RATE MONTHLY RATE 1 1 13 43.50 46.75 1 2 26 70.00 75.25 1 3 39 96.50 103.75 1 4 52 123.00 132.25 1 5 65 149.50 160.75 1 6 78 176.00 189.25 1 7 91 218.00 234.25 2 1 26 88.50 95.00 2 2 52 140.00 150.00 2 3 78 192.00 206.00 2 4 104 246.25 264.50 2 5 130 285.50 306.50 2 6 156 325.00 349.00 2 7 182 381.50 410.00 3 1 39 129.25 139.00 3 2 78 205.00 220.00 3 3 117 280.25 301.00 3 4 156 325.25 349.25 3 5 195 420.50 451.50 3 6 234 506.00 543.50 3 7 273 624.25 670.50 4 1 52 158.25 170.00 4 2 104 258.00 277.00 4 3 156 357.75 384.25 4 4 208 451.75 485.00 4 5 260 541.00 581.00 4 6 312 609.50 654.50 4 7 364 802.50 862.00 5 1 65 188.00 202.00 5 2 130 312.00 335.00 5 3 195 436.00 468.25 5 4 260 535.50 575.00 5 5 325 643.00 690.50 5 6 390 776.00 833.50 5 7 455 952.00 1022.50 6 1 78 217.75 233.75 6 2 156 366.00 393.00 6 3 234 514.25 552.25 6 4 312 591.75 635.50 6 5 390 716.50 769.50 6 6 468 872.00 936.50 6 7 546 1072.50 1151.75 (A) Passed and adopted by the Council of the City of National City, California, on 6-i4-88 by the following vote, to -wit: Ayes: Councilmen ..Caapax.,..>?azJ.a,..P.xut,.:IfanRexantex.,..liatgx§: Nays: Councilmen ..Nana Absent: Councilmen ..Nana Abstain: Councilmen ..Nana AUTHENTICATED BY: GEORGE H. WATERS By: Mayor of the City of National City, California City Clerk of the City of National City, California Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and cor- rect copy of RESOLUTION NO. 15,645 of the City of National City, Calif., passed and adopted by the Council of said City on 6-14-88 (Seal) City Clerk of the City of National City, California By: Deputy of National City, California COUNCIL AGENDA STATEMENT MEETING DATE June 14, 1988 AGENDA ITEM NO. 19 ITEM TITLE TRASH SERVICE RATE INCREASE PREPARED BY C. R. WILLIAMS, JR. EXPLANATION The last trash rate increase was approved in June, 1987. The County of San Diego has, by resolution of the Supervisors on May 17, 1988, raised the rate of the solid waste disposal fee schedule. EDCO, our fran- chised trash collector, has requested that this increase be treated as a pass -through cost increase to National City subscribers. The new rates will be comparable to those of surrounding cities as shown. A review of the EDCO-presented data by both the Public Works Director and the Finance Director indicates that the $0.50 per month increase for single-family accounts and the corresponding percentage increase for other types of service is warranted. Approval of the fee schedules as submitted by EDCO and attached hereto is recommended, to be effect- ive July 1. DEPARTMENT Public Works Environmental Review Financial Statement N/A X N/A Account No. STAFF RECOMMENDATION APPROVE THE RECOMMENDED RATES ATTACHED HERETO, TO BE EFFECTIVE JULY 1, 1988. BOARD/COMMISSION RECOMMENDATION N/A ATTACHMENTS (Listed Below) Resolution No. Edco letter of May 31, 1988 15,645 A-200 (Rev. 9/80) 1 i 1 ISPOSALICORPORATION 6670 Federal Boulevard Lemon Grove, California 92045 (619) 287-7555 COVER LETTER A) PROPOSED RATE SCHEDULE B) ACCOUNTANTS REPORT C) COMPANY ANALYSIS OF DISPOSAL kEt. IMPACT D) COMPARATIVE ANALYSIS OF RESIDENTIAL RATES E) COMPARATIVE ANALYSIS OF COMMERCIAL RATES f ISPOSAL :CORPORA 6670 Federal Boulevard Lemon Grove, California 92045 (619) 287-7555 May 31, 1988 City of National City 1243 National Ave. National City, CA 92050 Attention: Mr. Thomas McCabe City Manager Honorable Mayor and Members of the City Council: Please be advised, an July 1, 1988, the County of San Diego will raise the disposal fee approximately 31% at all solid waste landfills. This amount is significant and we are requesting a pass through of the additional expense in our rate schedules. Attached is an analysis, by the company, and a report from our accounting firm. Also enclosed is a comparison of residential and commercial rates in other cities in the county. After reviewing all the information, we are requesting an increase in the single family residential charge of $.50 per uauth and a corresponding percentage increase in commercial rates. We ask that council approve the enclosed rate schedule, effective July 1, 1988. Thank you for your consideration. Respectfully submitted, EDCO DISPOSAL CORPORATION Edward Burr President PROPOSED RATE SCHEDULE 7-1-88 EXISTING PROPOSED MONTHLY MONTHLY RATE RATE RUBBISH AND GARBAGE 1. Residential Per month residential single family properties. 6.75 7.25 7.47 For the second and for each additional residential unit in multiple dwellings which do not exceed four units 5.05 5.45 7.9% 2. Trailer Parks and Motels ($5.00 Minimum) One time per week, per unit, per month 4.80 5.15 7.3% 3. Apartment Houses (No miniium One time per week, per unit, per month 4.75 5.10 7.4% 4. Senior Citizen - Residential Per month 5.50 5.90 7.3% (A) PROPOSED RATE SCHEDULE 7-1-88 EXISTING PROPOSED MONTHLY MONTHLY RATE RATE RUBBISH AND GARBAGE (COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS) Up to (2) 40 gallon containers One time per week - per uajuth 7.90 8.50 7.6% Up to (2) 40 gallon containers Two times per week - per month 12.60 13.50 7.1% Up to (2) 40 gallon containers Three times per week - per ninth 16.20 17.40 7.4% Up to (2) 40 gallon containers Four t,nws per week - per month 19.95 21.50 7.8% Up to (2) 40 gallon containers Daily (six days/Monday thru Saturday) 26.15 28.10 7.57 Additional or unusual accumulation of rubbish (A) 4.75 per 5.10 per 7.4% cubic cubic yard yard PROPOSED RATE SCHEDULE 7-1-88 BOX TYPE REFUSE SERVICE NUMBER COTJFCTION YARDS PER EXISTING PROPOSED BINS FREQUENCY MONTH MONTHLY RATE MONTHLY RATE 1 1 13 43.50 46.75 1 2 26 70.00 75.25 1 3 39 96.50 103.75 1 4 52 123.00 132.25 1 5 65 149.50 160.75 1 6 78 176.00 189.25 1 7 91 218.00 234.25 2 1 26 88.50 95.00 2 2 52 140.00 150.00 2 3 78 192.00 206.00 2 4 104 246.25 264.50 2 5 130 285.50 306.50 2 6 156 325.00 349.00 2 7 182 381.50 410.00 3 1 39 129.25 139.00 3 2 78 205.00 220.00 3 3 117 280.25 301.00 3 4 156 325.25 349.25 3 5 195 420.50 451.50 3 6 234 506.00 543.50 3 7 273 624.25 670.50 4 1 52 158.25 170.00 4 2 104 258.00 277.00 4 3 156 357.75 384.25 4 4 208 451.75 485.00 4 5 260 541.00 581.00 4 6 312 609.50 654.50 4 7 364 802.50 862.00 5 1 65 188.00 202.00 5 2 130 312.00 335.00 5 3 195 436.00 468.25 5 4 260 535.50 575.00 5 5 325 643.00 690.50 5 6 390 776.00 833.50 5 7 455 952.00 1022.50 6 1 78 217.75 233.75 6 2 156 366.00 393.00 6 3 234 514.25 552.25 6 4 312 591.75 635.50 6 5 390 716.50 769.50 6 6 468 872.00 936.50 6 7 546 1072.50 1151.75 (A) MARSHALL A. PETERS. CPA JOSEPH C. STEINS. CPA SUSAN K. BOLTEN. CPA STEVEN V. NAKADA. CPA May 23, 1988 MARSHALL A. PETERS AN ACCOUNTANCY CORPORATION 4676 ADMIRALTY WAY, SUITE 236 MARINA DEL REV, CALIFORNIA 90292 (213) 821-1400 Board of Directors Edco Disposal Corporation MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS We have compiled the accompanying analysis of dumping fees increase for the San Diego County, which has scheduled an,increase of $2.50 per ton effective July 1, 1988, in accordance with standards established by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements, and accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit substantially all of the disclosures and the statement of changes in financial position required by generally accepted accounting principles. If the omitted disclosures and the statement of changes in financial position were included in the financial statements, they might influence the user's conclusions about the company's financial position, results of operations, and changes in financial position. Accordingly, these financial statements are not designed for those who are not informed about such matters. Sincerely, Marshall A. Peters Certified Public Accountant /db (B) EDCO DISPOSAL CORPORATION Analysis of Dumping Fee Increase San Diego County Effective July 1, 1988 the dumping fees for San Diego county will increase from $8.00 a ton to $10.50 a ton. This represents a 31.25% increase. An analysis of the operating ratio of dumping fees indicate that dumping fees consist of 19.8% of the non discretionary controllable costs of the San Diego county operations. There has been an effort by the company to comply with weight limitation laws. In addition, the intense enforcement has accelerated this effort. As a result, the pay load of the collection trucks have been lightened, and even though the landfill charges on a tonnage basis have not changed, the results have been to increase the number of loads, with the effect of increasing the overall costs of dumping. The percentage of dumping to costs has increased from 19.03% in 1986 to 19.80% in 1987, or a raw percentage difference of .77% . Applying this increase as well as the rate of increase in dumping fees, and an allowance for bad debts of 5%, the effective increase would be as follows: Dumping Fee Increase -Base 31.25% Increase Usage .77/19.03 4.05 Subtotal 35.30% Franchise Fee @ 2% .70 County Bond Fee @ 2% .70 Bad Debt Allowance @ 5% 1.77 Total % of Operating Costs Effective % Increase 38.47 19.8 7.62% Applied To A Basic Residential Rate of $6.50 $ .50 EDCO DISPOSAL CORPORATION Analysis of Dumping Fee Increase San Diego County 5/86 (12 Mos) Total Operating Costs Less Costs Determined by Forces Controllable by Management 1,513,729 1,519,194 750,046 Adjusted Costs 9,151,128 9,606,705 5,112,723 Dumping 1,741,044 1,852,471 1,012,458 % Dumping of Adjusted Costs 19.03% 19.28% 19.80% 5/87 (12 Mos) 11/87 (6 Mos) 10,664,857 11,125,899 5,862,769 COMPANY ANALYSIS OF DISPOSAL rrt. IMPACT Residential Waste Collection County code "D" 25-29 cubic yard packer body, from $55.00 to $72.00 per load, a $17.00 increase. Each load will contain the refuse from approximately 150 households. $17.00 divided by 150 equals $ 113 per pick up, multiplied by 52, divided by 12 equals $.49 per month average. Disposal fee increase - base .49 4% franchise fee .02 2% cost of payment bond .01 5% bad debt (est.) .025 Total estimated increase .545 per household Comiercial Waste Collection County code "F" 35-39 cubic yard packer body from $69.00 to $91.00 per load, a $22.00 increase. Each load will contain the refuse from approximately 50 three cubic yard bins. $22.00 divided by 50 equals $.44 per bin, multiplied by 52, divided by 12 equals $1.91 per bin per month average. Disposal fee increase - base 1.91 47 franchise fee .08 27 cost of payment bond .04 5% bad debt (est) .10 Total estimated monthly 2.13 increase per bin, per weekly pick-up (C) COMPARATIVE ANALYSIS OF RESIDENTIAL RATES IN SAN DIEGO COJNTY BILLING CITY RESPONSIBILITY RATE Carlsbad City 6.95 Chula Vista Company 7.00 Del Mar City 8.00 El Cajon Company 7.60 ** Encinitas Company 8.15 ** La Mesa Company 6.50 La Mesa (Proposed) Company 7.00 Lemon Grove Company 6.50 * National City Company 6.75 Poway Company 9.20 ** San Marcos Company 7.65 ** Spring Valley Company 7.95 Vista Company 7.65 ** * Rate application submitted for July 1, 1988 ** Approved effective July 1, 1988 (D) COMPARATIVE ANALYSIS OF COMMERCIAL RATES IN SAN DIEGO COUNTY CITYRATE Zx /6x Carlsbad 43.75/178.89 Chula Vista 41.00/182.20 Del Mar 50.53/231.80 El Cajon 44.50/199.50 ** Encinitas 46.00/183.50 ** La Mesa 40.75/167.00 La Mesa (Proposed) 44.00/180.25 Lemon Grove 40.75/167.00 * National City 43.50/176.00 * Poway 52.00/235.85 ** San Marcos 46.25/194.50 ** Spring Valley 52.00/191.00 Vista 46.20/194.10 ** * Rate application submitted for July 1, 1988 ** Rate approved effective July 1, 1988 (E) No. 39A TUESDAY, MAY 17, 1988 AMENDMENT TO RESOLUTION NO. 77 REVISING SOLID WASTE DISPOSAL FEE SCHEDULE AND PROVIDING FOR FEES AND INSURANCE REQUIREMENTS FOR PERMITS FOR COLLECTORS AND TRANSPORTERS OF SOLID WASTE ON MOTION OF Supervisor Golding , seconded by Supervisor Williams , be it resolved as follows: WHEREAS, Section 68.513 of the San Diego County Code authorizes this Board to establish fees for the use of designated County solid waste facilities, and WHEREAS, Section 68.550 of the San Diego County Code authorizes this Board to establish fees and insurance requirements for permits for collectors and transporters of solid waste, NOW THEREFORE BE IT RESOLVED as follows: The following fee schedule is hereby established, and shall apply to designated County Solid Waste Facilities: CLASS I - REFUSE COLLECTION VEHICLES Code Mechanical Packers Fee Per Vehicle A B C D E F 6 H I 1 A B C D • 14 cubic yards or less 15-19 cubic yards 20-24 cubic yards 25-29 cubic yards 30-34 cubic yards 35-39 cubic yards 40-49 cubic yards 50-59 cubic yards 60-69 cubic yards 70-79 cubic yards 80-89 cubic yards Drag -On Boxes 20 cubic yards or less 21-30 cubic yards 31-40 cubic yards 41-50 cubic yards $ 45.00 54.00 63.00 72.00 81.00 91.00 108.00 126.00 144.00 163.00 180.00 .: Fee Per Vehicle $ 20.00 39.00 59.00 79.00 Fee Schedule - Page 2 Any other Refuse Collection Vehicle CLASS II - OTHER VEHICLES Passenger cars and conventional station wagons: Weekday Weekend Trucks, buses and vans 4,500 lbs. or under unladen weight: Weekday Weekend Trailers - 8 ft. bed length and under: Weekday Weekend Over 8 ft. to 12 ]. bed length Over 12 ft. bed length Trucks, buses and vans 4,501 - 6,000 lbs. unladen weight Trucks, buses and vans over 6,000 lbs. unladen weight Any truck consisting of 3 axles Any tractor, trailer or 3-axle truck in combination with a trailer NOTE: Minimum charge - same as passenger car. SPECIAL HANDLING FEE - SURCHARGES Items in the following categories are subject to special fees as noted. The fee will be in addition to the vehicle charge: A. Any tree stump more than 5 feet in any linear dimension B. Any single item or animal which due to its size, weight, volume or other physical characteristics requires special handling and/or equipment or presents a significant health ---,safety or operational problem. -. d Any dead animal in excess of smaller dead animals or fowl under 500 lbs. Loads over 500 lbs., see 250 lbs. Any combination of in excess of 250 lbs., but above. $2.00/cu.yc of material Fee Per Vehicle $ 3.00 2.50 7.50 5.00 7.50 5.00 16.00 24.00 24.00 35.00 68.00 91.00 $ 15.00/ea. 1.00/cu.f $ 30.00/ea. Fee Schedule - Page 3 D. A load consisting of more than 1,000 gal. of non- hazardous semi -liquid or liquid industrial waste. E. Containerized solid industrial waste (non -hazardous). F. A load containing more than 15 cubic yards of straw, or similar hard -to -handle material. G. A load consisting of more than 10 cubic yards of car seats, mattress springs, or similar material. H. A load containing more than 25% poles, pipe, tree trunks, logs or branches, longer than 10 ft. and/or more than 14" in diameter. I. A load consisting of more than 1,000 gallons or kelp residue, food processing waste, or similar industrial waste (non -hazardous). J. Any vehicle with a load of standard car and truck tires, 5 or less at no charge; more than 5. K. Any vehicle carrying construction type industrial or heavy equipment tires. SPECIAL HANDLING FEE - WASTEWATER TREATMENT FACILITY BY-PRODUCTS By-products generated by Wastewater Treatment Facilities are subject to special handling fees as listed. This fee will be in addition to the regular vehicle charge: a. Primary Treatment Sludge Sludge dewatered to 20% solids 2,000 gal. or 10 cu. yds. Sludge less than 20% solids or sludge dewatered solids or greater, 2,000 gal. or 10 cu. yds. b. Secondary Treatment Sludge Sludge dewatered to 15% solids or grea 2,000 gal. or 10 cu. yds. Sludge less than 15% solids or sludge solids or greater, more than 2,000 c. Untreated Materials Grit Scum Bar Screen Material d. Digestor Cleanings or greater, less than to 20% or more ter, less than dewatered to 15% gal. or 10 cu. yds. $ 0. $ 0. $ 30. 03/gal. 20/cu.ft. $ 30. $ 30. 00/load $ 30. 00/load $ 0. $ 10 00/load 00/load 20 per tire .00 per tire Vehicle Fee Only $ 30.00/load Vehicle Fee Only $ 30.00/load $ 30.00 Minimum $ 30.00/load $ 0.03/gal. $ 30.00/load $ 0.04/gal. Fee Schedule - Page 4 RURAL CONTAINER STATION No Fee Access is limited to: Passenger cars and conventional station wagons. Trucks, buses and vans 4,500 lbs. or under unladen weight. Trailers - 8 ft. bed length and under, carrying residential waste. NOTE: MECHANICAL UNLOADING OF ANY VEHICLE WILL NOT BE ALLOWED AT RURAL CONTAINER SITES. NOTE For the purpose of this fee schedule, terms shall have the meanings respectively ascribed to them, Ordinance No. 6875, Management of Solid Waste. The rules and regulations governing revenue collection and solid and liquid waste handling and disposal have been established. A copy of the approved Department Policy and Procedure Manual on Solid Waste Management is on file at the office of the Director. COLLECTOR AND TRANSPORTER PERMIT FEES The following fees are hereby established for Collector Permits and Transporter Permits, as required by Chapter 5 of the County Code for the permitting of solid waste collection and transportation services in the County: COLLECTOR PERMIT FEES New Permits (Class 'A" or Class "B") Filing Fee (one time only) $100.00 Collector Permit Area Fee (each permit area) 25.00 Decal Fee (each truck) 100.00 Renewal Permits (Class "A" or Class "B") - Filing Fee $ 25.00 Collector Permit Fee (each permit area) 25.00 Decal Fee (each truck) 100.00 TRANSPORTER PERMIT FEES New Permits Filing Fee Transporter Permit Fee Decal Fee (each truck) Renewal Permits Filing Fee Transporter Permit Fee Decal Fee (each truck) $100.00 100.00 100.00 $ 25.00 100.00 100.00 Fee Schedule - Page 5 INSURANCE Every permittee shall maintain and keep in force the following insurance coverages and limits: COVERAGE Worker's Compensation Public Liability (including auto) LIMITS Statutory 1. $ 500,000 bodily injury per person 2. $1,000,000 m per occurrence 3. $250,000 property damage or in lieu of 1, 2, 3 above combined single limit bodily injury & property damage coverat of $1,000,000. BE IT FURTHER RESOLVED that this Resolution replaces that certain resolution adopted by the Board of Supervisors on April 13, 1971 (30), and amended on July 13, 1971 (17), April 3, 1973 (30), May 31, 1977 (86), August 22, 1978 (77), May 6, 1980 (49), March 10, 1981 (72a), September 29, 1981 (29), February 23, 1982 (17), March 23, 1982 (23), January 25, 1983 (82), March 22, 1983 (52), and February 24, 1987 (4 & 5) which last said Resolution is hereby rescinded. BE IT FURTHER RESOLVED that this Resolution shall take effect on July 1, 1988. PASSED AND ADOPTED by the Board of Supervisors of the County of San Diego, State of California, this 17th day of May, 1988, by the following vote: AYES: Supervisors Bilbray, Bailey, Golding, Williams and MacDonald NOES: Supervisors None ABSENT: Supervisors None STATE OF CALIFORNIA ) ss. COUNTY OF SAN DIEGO ) I, Kathryn Nelson, Clerk of the Board of Supervisors of the County of San Diego, State of California, hereby certify that I have compared the foregoing copy with the original resolution passed and adopted by said Board, at a regular meeting thereof, at the time and by the vote therein stated, which original resolution is now on file in my office; that the same contains a full, true and correct transcript therefrom and of the whole thereof. Witness my hand and the seal of said Board of Supervisors this 17th day of May, 1988 (39A) ur:4:r t ...,, "(N:!iii CC'" s KATHRYN NELSON Clerk of the Board of Supervisors exaZ4J BY Esther C. Ryan Deputy scm/D1-038