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HomeMy WebLinkAboutEDCO Disposal Corporation - Rate Adjustment and Curbside Recycling - 1991City of National City, Californic CVUNCIL AGENDA STATEMENT MEETING DATE May 28, 1991 AGENDA ITEM NO. 9 1JTEM TITLE A REPORT ON THE CURBSIDE RECYCLING PILOT PROGRAM, A RECOMMENDF CHANGE IN THE EFFECTIVE DATE OF A RATE CHANGE, AND A PROPOSAL FOR A RATE CHANGE PREPARED BY C. R. WILLIAMS, EXPLANATION. See attached report. DEPARTMENT Public Works Environmental Review x N/A Financial Statement Increase in rates will result in increased costs to our citizens and increased revenue to the city due franchise fee. Account No. N/A STAFF RECOMMENDATION APPROVE CITYWIDE CURBSIDE RECYCLING JULY 1, 1991. APPROVE RESCHEDULING RATE EFFECTIVE DATE FROM OCTOBER 1, 1991 TO JULY 1, 1991. APPROVE REVISED RATE SCHEDULE. BOARD/COMMISSION RECOMMENDATION N/A ATTACHMENTS (Listed Below) x Resolution No 91-104 1. Council Agenda Statement Explanation - September 25, 1990 meeting 2. EDCO Disposal Corporation letter dated May 15, 1991 3. 830 pilot recycling data 4. Magazine article "Recyclers Have an Impact!" A•zoo5luv. vtdionthly refuse rates of incorporated cities 6. Bulky item pickup log A t L RESOLUTION NO. 91-104 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE ESTABLISHMENT OF A CITYWIDE CURBSIDE RECYCLING PROGRAM AND APPROVING A TRASH SERVICE RATE INCREASE FOR EDCO DISPOSAL CORPORATION WHEREAS, the last trash service rate increase for EDCO Disposal Corporation, the City's franchised trash collector, was approved in September 1990; and WHEREAS, the County of San Diego will raise the rate of solid waste disposal effective July 1, 1991, and the City Council has approved that this type increase be treated as a pass -through cost to trash subscribers; and WHEREAS, additional services are being requested of the EDCO Disposal Corporation, to wit, citywide curbside recycling; 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, a copy of which is attached hereto as Exhibit A is hereby approved to be effective July 1, 1991. PASSED and ADOPTED this 28th day of May, 1991. jI„.rjJt.454ell: eorge H Waters, Mayor ATTEST: jiLorAnne Peoples, Ci y Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney NATIONAL CITY RATE SCHEDULE 7-1-91 RUBBISH AND GARBAGE (COMMERCIAL CURRENT PROPOSED MRATELY MONTHLY AND INDUSTRIAL ESTABLISHMENTS) RATE RATE Up to (2) 40 gallon containers One time per week -per month Up to (2) 40 gallon containers Two times per week -per month Up to (2) 40 gallon containers Three times per week -per month Up to (2) 40 gallon containers Four times per week -per month Up to (2) 40 gallon containers Daily (six days/Monday thru Saturday) Additional or unusual accumulation of rubbish (per cubic yard) EXHIBIT A 10.25 11.85 16.30 18.85 21.00 25.95 33.90 24.25 29.95 39.15 6.15 7.10 NATIONAL CITY RATE SCHEDULE 7-1-91 BOX TYPE REFUSE SERVICE CURRENT PROPOSED NUMBER COLLECTION YARDS PER MONTHLY MONTHLY BINS FREQUENCY MONTH RATE RATE 1 1 13 54.25 62.65 1 2 26 87.30 100.85 1 3 39 120.35 139.00 1 4 52 153.40 177.20 1 5 65 186.50 215.40 1 6 78 219.50 253.50 1 7 91 271.75 313.85 2 1 26 110.20 127.30 2 2 52 174.00 200.95 2 3 78 238.95 276.00 2 4 104 306.80 354.35 2 5 130 355.55 410.65 2 6 156 404.85 467.60 2 7 182 475.60 549.30 3 1 39 116.25 134.25 3 2 78 255.20 294.75 3 3 117 349.15 403.25 3 4 156 405.15 467.95 3 5 195 523.75 604.95 3 6 234 630.45 728.15 3 7 273 777.80 898.35 4 1 52 197.20 227.75 4 2 104 321.30 371.10 4 3 156 445.75 514.85 4 4 208 522.00 602.90 4 5 260 673.95 778.40 4 6 312 759.20 876.85 4 7 364 999.90 1154.90 5 1 65 234.30 270.60 5 2 130 388.60 448.85 5 3 195 543.15 627.35 5 4 260 667.00 770.40 5 5 325 801.00 925.15 5 6 390 966.85 1116.70 5 7 455 1186.10 1369.95 6 1 78 271.15 313.15 6 2 156 455.90 526.55 6 3 234 640.60 739.90 6 4 312 737.20 851.45 6 5 390 892.60 1030.95 6 6 468 1086.35 1254.75 6 7 546 1336.00 1543.10 NATIONAL CITY RATE SCHEDULE 7-1-91 RUBBISH AND GARBAGE 1. RESIDENTIAL Per month residential single family properties. For the second and for each additional residential unit in multiple dwellings which do not exceed four units CURRENT PROPOSED MONTHLY MONTHLY RATE RATE 8.75 10.10 6.60 7.60 2. TRAILER PARKS AND MOTELS (5.00 MINIMUM) One time per week, per unit, per month 6.20 7.15 3. APARTMENT HOUSES (NO MINIMUM) One time per week, per unit, per month 6.15 7.10 4. SENIOR CITIZEN -RESIDENTIAL Per month 7.10 8.20 Passed and adopted by the Council of the City of National City, California, on May 28, 1991 by the following vote, to -wit: Ayes: Councilmen Dal la. Inzunza, Van Deventer, Zarate, Waters Nays: Councilmen None Absent: Councilmen None Abstain: Councilmen None AUTHENTICATED BY: ,,.. 1CST GEORGE H. WATERS Mayor of the City of National City, California City Clerk of the City of National Cfty, California (Segl�!a By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and cor- rect copy of RESOLUTION NO.9.1.-104 of the City of National City, Calif., passed and adopted by the Council of said City on ...May..28,...1991. (Seal) By: City Clerk of the City of National City, California Deputy SUBJECT: A REPORT ON THE CURBSIDE RECYCLING PILOT PROGRAM, A RECOMMENDED CHANGE IN THE EFFECTIVE DATE OF A RATE CHANGE, AND A PROPOSAL FOR A RATE CHANGE ISSUES: (1) SHOULD THE CITY CONTRACT WITH EDCO FOR THE FULL CITYWIDE CURBSIDE RECYCLING EFFORT. (2) SHOULD THE RATE INCREASE DATE BE CHANGED FROM OCTOBER 1, 1991 TO JULY 1, 1991. (3) SHOULD THE RATE INCREASE PROPOSED BY EDCO BE APPROVED. REFERENCES: A) Explanation and approved recommendations from September 25, 1990 Council minutes. B) Rate request letter from EDCO of May 15, 1991. RECOMMENDATIONS: 1. THAT EDCO BE AUTHORIZED TO COMMENCE THE CITYWIDE CURBSIDE RECYCLING ON JULY 1, 1991; 2. THAT THE ANNUAL RATE REVISION REVIEW BE SCHEDULED TO BE EFFECTIVE JULY 1 EACH YEAR; 3. THAT THE RATE INCREASE PROPOSED BY EDCO BE APPROVED, EFFECTIVE JULY 1, 1991. FISCAL IMPACT: 1) On City - There will be an increase in revenue from franchise fees. 2) On Citizens - An increase in trash costs from $8.75 per month for single family to $10.10, with corres- ponding rate increases for all other customers. BACKGROUND: In September of 1990 a rate increase for EDCO was approved by Council. This rate increase was accompanied by a number of additional services - an 830 single-family curbside recycling pilot program (with citywide curbside to start July 1, 1991 upon approval by Council), bulky item pickup to be included in the established rate, a refrigerator door program to be included in the established rate, and a second citywide cleanup to be put in effect. Additionally, changes in the tipping fee charges by the County were established to -2- be a pass -through cost with a rate change to be concurrent with the tipping fee increase, the franchise fee increase to 5% was deferred to October, 1992, and the local CPI was selected to be the rate increase indicator (with a cap of 6% maximum), also in October 1991. Strict adherence to the wording of the current contract would have a rate increase in July (tipping fee increase pass - through effective with the imposition of the tipping fee increase on July 1); and a second rate increase immediately after, on October 1, to accommodate the CPI increase and the curbside recycling charge. This would not only be unpalatable to our citizens but would also require an artificially high rate. The recycling increase would have to be recouped over only nine months vice a normal 12 months. I have accordingly requested EDCO to present two rate structures - one to accommodate a single rate change July 1, 1991, the other to consider a single change on October 1, 1991. DISCUSSION: (1) CURBSIDE: The Council specifically requested that the curbside pilot program be brought back for review by Council and for specific authorization to go forward to the citywide program July 1. Data on the results of the pilot program to date are contained on Attachment I hereto. As anticipated, the response was somewhat less than that of some of our neighbors. See the table of Attachment II. Experience countywide indicates that communities with demographics similar to those of ours do not have high response levels. Additional passive or active participation by city figures, both elected and others, is in the planning phase for future publicity, as is an appeal to recycling through education within the school system. Although these measures will help, no one truly feels that they will permit attainment of recycling levels necessary. It well could be that more draconian measures may be required to encourage recycling to meet state -mandated solid waste diversion percentages (i.e., per can rates, mandatory recycling, etc.). The program must go; EDCO is well -positioned both to provide services to National City, and to the area as a major recycler. It is recommended that it be authorized to commence the citywide curbside recycling on July 1, 1991 as planned. -3-- Recycling, by protecting the environment, by extending the life of existing landfills thus delay- ing the date when more expensive or more remote sites must be used, by lessening the use of virgin materials, etc., provides benefits for all who use trash services. There are four major parts to the recycling program: (1) Single-family curbside, (2) multi- family, (3) commercial/industrial, and (4) yard waste. Each of these programs will require expendi- tures in excess of the revenues they produce. Curbside, being the easiest to accomplish, has been done first. Although many cities have decided to place the full fiscal burden of the single-family curbside program onto single-family residences, the charges in National City have been apportioned among all beneficiaries of the recycling effort, that is, among all receivers of trash service. To do otherwise would not be fair. Our system of charges will provide a more even-handed approach to the costs of recycling. Assuming that the July 1 curbside recycling implementation and cost increase date is approved, the cost impact of recycling on single-family housing will be $0.52 per month. Remember that recycling costs are spread among all customers. If single-family, alone, had to bear the full cost (as is done in other cities), the cost would be $1.66 per month. This is the number to use for comparison with other cities' costs, which are indicated on Attachment III. 2) SHOULD RATE REVIEW TIME BE CHANGED FROM OCTOBER TO JULY? When EDCO's contract was most recently extended, it was done in the October time frame. It seemed appropriate for the rates to be for a one-year period, and thus future rate changes would also be in OCTOBER. Changes in the County's tipping fees are a pass - through cost, to occur concurrently with the rate change. We have a major tipping fee change scheduled for July 1 (from $18/ton to $23/ton - a 26.8% increase!) plus a scheduled July 1 starting of the citywide curbside recycling. Both of these events will increase the cost basis of the contractor. We are faced with the dilemma of -4- having a rate increase in July and another one in October, or of combining all increases into one change. Two rate changes within a 4-month period is simply not doable because of the loss of citizen confidence in management of the city, and to the follow-on "injury" to the credibility of elected officials. The choice seemingly is one rate increase - either July 1 or October 1. If we go in October, the rates required will be artificially high in that the contractor will have three months' costs (July 1 - October 1) associated with the tipping fee increase and curbside recycling, for which he will receive no income. He will have to recoup these three months' costs plus the 12 months' costs from October 29, 1991 to October 29, 1992 over the 12-month period. These two elements of cost will accordingly have to be about 25% higher if we start in October rather than July. If we go the other way - that is, make the rate change effective on July 1, the tipping fee and citywide curbside problems go away, and we have the problem of the normal rate increases (equal to the CPI). If we were to give EDCO the full annual CPI, we would be allowing 12 months worth of increase in only a 9-month period. If, however, only 9/12 of the CPI increase were allowed, then the actual increase would be scaled back to the 9-month period and would be correct. This is what is being recom- mended; specifically: that there be only a single rate increase for the tipping fee increase, for starting citywide recycling, for the normal cost of living CPI and for other costs. that the increase occur effective July 1991, and on July 1 during the rest of the contract period. and that only 9/12 of the CPI increase be allowed for the July 1991 change. 3) SHOULD THE RATE INCREASE PROPOSED BY EDCO BE APPROVED? As discussed above, there is rationale for causing the annual rate adjustment to occur either July 1 or October 1 (but not for two rate increases). -5- EDCO's rate review request dated MAY 15, 1991, along with his auditor's report (see Reference B), are developed to permit selection of either the July 1 or the October 1 effective date. EDCO is recommending a July 1 date, which develops a single- family rate increase from $8.75 to $10.10 per month, with other residential rates compatible. The auditor's report shows that waiting to October 1 develops a single-family rate of $10.49. You may remember that we required the contractor to absorb two tipping fee increases when the 1990 rate increase was approved. The amount we are paying now for service is higher by $0.45 per month for having those tipping fees absorbed. The revised July 1 rate will take the residual amount "owed" for the three months remaining in the "rate" year (July 1 to October 1) and spread the cost over the 12 months of the July 1, 1991 - July 1, 1992 contract. This will reduce this part of the bill from $0.45/month for single-family down to $0.11/month (and commercial accordingly) as shown in the auditor's report of Reference (b). The amount projected last year to cover the additional special services has proved inadequate. Special services include emptying citywide litter cans, bin trash service to the city facilities, disposal of sweeper sweepings, and the misnamed "free" services to citizens including the second citywide cleanup, the bulky item pickup, and the refrigerator door program. A summary of the bulky items activity is provided as Attachment IV. The primary reason for the increase is that the cost of disposal (tipping costs) for roll -off bins will increase from $100 per roll -off, to a figure of $23.00 per ton. This change in rate basis - that is, from a flat fee to a fee by weight - is generally a wash. A roll -off is usually about four tons. However, the sweeper sweepings roll -offs are averaging 8-1/2 tons each. The cost to dump will go from $100 each to about $200 each. This will add about $0.09 to the single-family bill, the other $0.03 to make the $0.12 being requested for special services in the higher -than -anticipated use of the bulky items service. An additional $0.12/month residential is being requested to adequately cover the costs of these "free" services. -6- Analyzing the increase requested in Reference B shows the following: CURRENT RATE $8.75 July 1 tipping fee increase $0.73 Increased utilization special services $0.12 Recycling program (shared costs with all customers) $0.52 9/12 annual CPI $0.33 TOTAL INCREASE $1.70 Offset by reduction in prior years' tipping fee absorption by contractor (was $0.45, now $0.11) NET RATE INCREASE *Rounded to $1.35 NEW RATE REQUESTED OVERALL RATE INCREASE $1.35 = 15.5% -.34 $1.36* $10.10 Note that only $0.33 is contractor's cost -of -living increase - by itself only a 3.77% increase. The other portions of the increase were caused by provision of additional service. Attachment III shows costs in nearby jurisdictions. Note that these costs, being as of March 91, do not reflect the July 1, 1991 tipping fee increase. Also note that they are not always comparing the same thing in that franchise fees vary widely, trash activities included vary widely (e.g., our special "free" programs), and rate changes do not occur on the same schedule. CONCLUSION: From the above discussions, it is seen that in National City the rate of participation and the pounds of recyclables per house put out is low, now, and will remain so in comparison to our more affluent, less diversified and more stable neighbors. This means that our recycling will not be -7- as effective, and consequently our costs will be higher than theirs now and in the future. It may also range problems vs. $10.49) if July 1, 1991, increase to 5% 1992. seen that both the long-range and short - are less, and the rates will be less ($10.10 we shift the rate change effectiveness date to and each year thereafter. The franchise fee scheduled for October 1, 1992 to occur July 1, be It further appears that the price offered by EDCO has been reasonably developed and is not out of line with those of nearby jurisdictions. ALTERNATIVES: a. The present agreement would require a rate change in July and one in October. Although this could be done, it appears unpalatable. b. The contractor could be requested to upfront the curbside recycling and landfill tipping fees until October, with the rate change effective October 1. This will result in higher rates for our citizens in that contractor will have to recover 15 months of costs in 12 months. Not recommended. c. The recycling portion could be put out to bid. This would still require resolution of the July/October effective date for a rate change. It would not only stop the present city's 830 family pilot curbside program but would also delay the start of the citywide program. County staff now has a County Mandatory Curbside Recycling Program ready to present to the TRASH TASK FORCE (SANDAG) and to the COUNTY BOARD OF SUPERVISORS which would require mandatory curbside citywide to be on-line by January 1992, or the cities' trash would have stiff penalties imposed at the landfill site. It would be very difficult to meet this date and to escape the imposition of those penalties. This would also present the difficult (but not unsolv- able) problems of scheduling trash and recycling services, routes, etc. NATIONAL CITY RATE SCHEDULE 7-1-91 BOX TYPE REFUSE SERVICE CURRENT PROPOSED NUMBER COLLECTION YARDS PER MONTHLY MONTHLY BINS FREQUENCY MONTH RATE RATE 1 1 13 54.25 62.65 1 2 26 87.30 100.85 1 3 39 120.35 139.00 1 4 52 153.40 177.20 1 5 65 186.50 215.40 1 6 78 219.50 253.50 1 7 91 271.75 313.85 2 1 26 110.20 127.30 2 2 52 174.00 200.95 2 3 78 238.95 276.00 2 4 104 306.80 354.35 2 5 130 355.55 410.65 2 6 156 404.85 467.60 2 7 182 475.60 549.30 3 1 39 116.25 134.25 3 2 78 255.20 294.75 3 3 117 349.15 403.25 3 4 156 405.15 467.95 3 5 195 523.75 604.95 3 6 234 630.45 728.15 3 7 273 777.80 898.35 4 1 52 197.20 227.75 4 2 104 321.30 371.10 4 3 156 445.75 514.85 4 4 208 522.00 602.90 4 5 260 673.95 778.40 4 6 312 759.20 876.85 4 7 364 999.90 1154.90 5 1 65 234.30 270.60 5 2 130 388.60 448.85 5 3 195 543.15 627.35 5 4 260 667.00 770.40 5 5 325 801.00 925.15 5 6 390 966.85 1116.70 5 7 455 1186.10 1369.95 6 1 78 271.15 313.15 6 2 156 455.90 526.55 6 3 234 640.60 739.90 6 4 312 737.20 851.45 6 5 390 892.60 1030.95 6 6 468 1086.35 1254.75 6 7 546 1336.00 1543.10 COUNCIL AGENDA STATEMENT MEETING DATE September 25, 1990 ITEM TITLE REQUEST FOR RATE INCREASE FOR TRASH SERVICE EXPLANATION The terms of the contract with EDCO provide for periodic rate increases. Based upon numerous discussions and the Workshop of 9/18/90, the contractor has submitted a letter (EDCO letter of 9/19/90 attached) requesting a rate change for 10/1/90, recommending a deferral of some elements of new services desired by the city, and proposing a future method of determining rate changes. The rate change proposed is an approximate 20% rate increase to single-family units from $7.25 to $8.75 per month; and an approximate 16% increase in commercial services. The deferral of citywide curbside recycling in favor of a pilot program, and the deferral of an increase in the franchise fee has reduced the rate changes from those originally submitted. Staff agrees with the deferral of these two programs. The proposed use of the local urban consumer price index as a vehicle for determining future rate increases appears acceptable, with the % change in rate being equal to the % change in index, and with a maximum 6% cap. The further proposal to treat tipping fee changes as "pass - through" costs has merit. The County has advised that the fees will continue to rise; the amount and timing of increases are not known. Treating this as a "pass -through" cost with the rate increase being only for tipping fee increases and with the timing being concurrent, the element of risk on both sides is reduced to zero. Approval is recom- mended. RECOMMENDATION Approve the rates proposed, to be effective October 1, 1990. Approve the bulky item pickup and refrigerator door programs to start October 1, 1990. Approve the second citywide cleanup to be in October 1990. Approve the pilot recycling program to start October 1990. Approve citywide curbside recycling to start July 1991. Approve theuse of the CPI to establish new rates in October 1991 and thereafter approve increasing the franchise fee to 5% on October 1, 1992, and 1% per year thereafter; and approve the treating of County landfill tipping fee increases as a pass -through cost. RPORI O 6670 Federal Boulevards i ° " Lermon Grove; California 92045 (6.19) 287-7555] May 15, 1991 City of National City 1243 National Ave. National City, CA 92050 Honorable Mayor and Members of the City Council: On July 1, 1991 the County of San Diego is raising the disposal site fee from $18.00 to $23.00 per ton, a 28% increase. Also, after successful completion of a 9 month pilot residential curbside recycling program, we plan to start the city wide program on that same date. During last years negotiations we agreed to review rates on October 1st each year. However, because the county adjusts disposal fees annually on July 1st, it appears the refuse rates would be artificially high if we delayed for three months the pass through of additional landfill fees and recycling costs. For this reason we are recommending rates be adjusted annually on July 1st instead of October. Attached is the accountants rate review. The report recommends a $1.36 increase in single family dwellings, including recycling service and a similar percentage in commercial charges. Please approve the attached proposed rate schedules to be effective July 1, 1991. Thank you for your consideration of this proposal. Please be aware of our continuing commitment to the highest quality customer service at the lowest possible rates. Respectfully, EDCO DISPOSAL CORPORATION dba/National City Rubbish Edward Burr President NATIONAL CITY RATE SCHEDULE 7-1-91 RUBBISH AND GARBAGE (COMMERCIAL CURRENT PROPOSED MRATELY MONTHLY AND INDUSTRIAL ESTABLISHMENTS) RATE RATE Up to (2) 40 gallon containers One time per week -per month 10.25 11.85 Up to (2) 40 gallon containers Two times per week -per month 16.30 18.85 Up to (2) 40 gallon containers Three times per week -per month 21.00 24.25 Up to (2) 40 gallon containers Four times per week -per month 25.95 29.95 Up to (2) 40 gallon containers Daily (six days/Monday thru Saturday) Additional or unusual accumulation of rubbish (per cubic yard) 33.90 39.15 6.15 7.10 NATIONAL CITY RATE SCHEDULE 7-1-91 BOX TYPE REFUSE SERVICE CURRENT PROPOSED NUMBER COLLECTION YARDS PER MONTHLY MONTHLY BINS FREQUENCY MONTH RATE RATE 1 1 13 54.25 62.65 1 2 26 87.30 100.85 1 3 39 120.35 139.00 1 4 52 153.40 177.20 1 5 65 186.50 215.40 1 6 78 219.50 253.50 1 7 91 271.75 313.85 2 1 26 110.20 127.30 2 2 52 174.00 200.95 2 3 78 238.95 276.00 2 4 104 306.80 354.35 2 5 130 355.55 410.65 2 6 156 404.85 467.60 2 7 182 475.60 549.30 3 1 39 116.25 134.25 3 2 78 255.20 294.75 3 3 117 349.15 403.25 3 4 156 405.15 467.95 3 5 195 523.75 604.95 3 6 234 630.45 728.15 3 7 273 777.80 898.35 4 1 52 197.20 227.75 4 2 104 321.30 371.10 4 3 156 445.75 514.85 4 4 208 522.00 602.90 4 5 260 673.95 778.40 4 6 312 759.20 876.85 4 7 364 999.90 1154.90 5 1 65 234.30 270.60 5 2 130 388.60 448.85 5 3 195 543.15 627.35 5 4 260 667.00 770.40 5 5 325 801.00 925.15 5 6 390 966.85 1116.70 5 7 455 1186.10 1369.95 6 1 78 271.15 313.15 6 2 156 455.90 526.55 6 3 234 640.60 739.90 6 4 312 737.20 851.45 6 5 390 892.60 1030.95 6 6 468 1086.35 1254.75 6 7 546 1336.00 1543.10 EDCO DISPOSAL CORPORATION RATE REVIEW FOR THE CITY OF NATIONAL CITY APRIL 29, 1991 10920 Wilshire Boulevard Suite 1200 `.os Angeles .;alifornia 90024 (213) 208-1200 Member: American Institute of Certified Public Accountants California Society of Certified Public Accountants Private Companies Practice Section, AICPA, Division for CPA Firms Alder, Green & Hasson REPORT IN CONNECTION WITH RATE REVIEW Board of Directors Edco Disposal Corporation Certified Public Accountants At your request, we have applied the procedures enumerated below to the information provided related to the contract with the City of National City. These procedures, which were agreed upon by Edco Disposal Corporation, were performed solely to assist you in preparing a Rate Review for the City of National City. This report is intended solely for your information and for those involved in the rate making process for the City of National City contract; and should not be used for any other purpose. We performed the following agreed -upon procedures, the results of which are attached: 1. We computed the Consumer Price Index increase required at both July 1, 1991 and October 1, 1991. 2. We computed the rate increase required for the Dump Fee increase by the County of San Diego effective July 1, 1991. Additionally we evaluated the required recovery amount in the event Edco is unable to pass -through this increase until October 1, 1991. 3. We computed the cost of special services and the corresponding rate requirement for the dump fee increase based on information provided by management. 4. We assembled the information for recycling provided by management and integrated it into the computation of the rate adjustment. Because the above procedures do not constitute an audit conducted in accordance with generally accepted auditing standards, we do not express an opinion on any of the accounts or items referred to above. In connection with the procedures referred to above, no matters came to our attention that caused us to believe that the specified accounts or items should be adjusted. Had we performed additional procedures or had we conducted an audit of the financial statements in accordance with generally accepted auditing standards, matters might have come to our attention that would have been reported to you. This report relates only to the accounts and items specified above and does not extend to any financial statements of Edco Disposal Corporation taken as a whole. 1 ALDER, GREEN & HASSON April 29, 1991 Los Angeles, California EDCO/NATIONAL CITY COMPUTATION OF RATE ADJUSTMENT Under the terms of the Collection of Rubbish and Trash contract between the City of National City and Edco Disposal Corporation, dated September 25, 1990; applications for rate changes are to be submitted on an annual basis with effective dates of October 1. Due to the planned implementation of a citywide Curbside Recycling Program effective July 1, 1991, and a 27.7% increase in dumping fees also effective July 1, 1991, we are submitting our application for rate adjustment with both July 1, 1991 and October 1, 1991 effective dates. Analysis of impact of Rote Increase on Rates Effective July 1, 1991 % of 1891 Forecasted _ Revenue Residential Commercial Current Existing Rate S 8.75 $ 54.25 Consumer Price index Increase (Nine Months) (Note 1) 3.83 .33 2.08 Dump Fee increase 8.30 .73 4.50 Reversal of Prior Unrecovered Dump, Net (3.88) (.34) (2.11) TOTAL REFUSE RATE Special Services Recycling Program (Proportionate Sharing Between Residential and Commercial) TOTAL COMBINED RATE Alternate: Recycling Program (Residential Rate Only) TOTAL COMBINED RATE 8.25 1.37 5.90 9.47 58.72 . 12 .75 . 52 3.20 15.52 10.11 9 82.67 18.00 1.66 Fib 28.62 11.25 9 59.47 Note 1: The Consumer Price Index for the San Diego County area was 5.0% on April 1991, The increase shown above is 9/12 of the current Consumer Price Index plus a provision for the 2% franchise fee. See Report in Connection with Rate Review -2• EDCO/NATIONAL CITY COMPUTATION OF RATE ADJUSTMENT Analysis of Impact of Rate Increase on Rates Effective October 1. 1981 % of 1991 Forecasted Revenue Residential Commercial Current Existing Rate $ 8.75 $ 54.25 Consumer Price Index Increase (Twelve Months) (Note 1) 5.10 .46 2.77 Dump Fee Increase 8.30 .73 4.60 Unrecovered Dump 2.07 .18 1.12 Reversal of Prior Unrecovered Dump, Net r (6.14) (.46) (2.81) M TOTAL REFUSE RATE 10.33 9.68 69.83 Special Services 2.11 .18 1.14 Recycling Program (Proportionate Sharing Between Residential and Commercial) Unrecovered Recycling 5.90 1.48 TOTAL COMBINED RATE 19.82 Alternate: Recycling Program (Residential Rate Only, Including $0.42 Unrecovered) Note 1: TOTAL COMBINED RATE .52 3.20 .13 .80 10.49 $ 84.97 23.90 2.09 36.34 11.93 $ 80.97 The Consumer Price Index for the San Diego County area was 6.0% in April 1991. The increase shown above includes a provision for the 2% franchise fee. See Report in Connection with Rate Review -3- EDCO/NATIONAL CITY ANALYSIS OF COMPUTATION OF RATE INCREASE Edco received an increase in rate effective October 1, 1990 to cover the dump fee increase effective July 1, 1990 and an annual Consumer Price Index factor. The next scheduled application for rate adjustment is for October 1, 1991. Effective July 1, 1991 the County of San Diego dump fees will increase by 27.7%. In addition, the Citywide Curbside Recycling Program will commence on that date. We have computed the rate increases required effective both July 1, 1991 and October 1, 1991 for comparison purposes. Both methods show in the individual item increase as effective July 1. The October method however, includes "Unrecovered" provisions providing for "catch -ups" for the three month period (July through September) to which Edco was subject to the higher costs but received no additional revenue. These unrecovered amounts are effective for a twelve month period. The October 1990 rate increase included a similar provision to reflect the July 1990 dump increase. This provision is shown as being reversed effective October (July method reversal is reduced due to premature reversal). In addition, the July method only has a Consumer Price Index increase for 9 months as the previous increase was in October 1990. All cost increases have been grossed up to reflect the 2% franchise fee and are based on forecasted fiscal 1991 revenues. REGULAR DUMP FEE INCREASE Current Dump Rate New Dump Rate $ 18/ton 23/ton Increase Percent 27.7% Forecasted 1991 Total Dump Costs Forecasted 1992 Dump Costs Plus Franchise Fee $ 651,126 848,973 Increase Amount $ 197,847 Percent of 1991 Forecasted Revenue Increase ($2,386,000) 8.30% UNRECOVERED DUMP FEES Unrecovered Dump fees are equivalent to three months of the net increase to be recouped over a twelve month period: Regular Dump Fee Increase Three Months of Increase $ 197,848 49,462 Percent of 1991 Forecasted Revenue ($2,386,000) See Report in Connection with Rate Review -4- EDCO/NATIONAL CITY ANALYSIS OF COMPUTATION OF RATE INCREASE PRIOR UNRECOVERED DUMP Included in the October 1980 rate increase was a provision for unrecovered dump fees for the period July 1990 through September 1990; to be recovered over a twelve month period. This provision is fully reversed effective October 1991. For July 1991 the reversal 1s partial to allow the remaining 3 months to be respread over the next twelve month period. Residential Commercial October Effective Date Full Prior unrecovered Dump $ .45 $ 2.81 July Effective Date Uncollected Portion (One -Fourth) .11 .70 NET JULY REVERSAL SPECIAL SERVICES $ .34 $ 2.11 Included in the current existing rate is the cost recovery for dump fees for special services (street litter cans, bin service at civic containers, etc.). The requested Increases are to cover the dump fee increase only and are calculated as 1.37% of the current existing rate for July and 2.11 % for October. This Increase also covers the additional dump fee Increase caused by the County of San Diego changing dump fees on roll -off bodies from a flat rate to a per -ton charge. Accordingly, the rate provided does not fully support the special services. See Report in Connection with Rate Review -5- EDCO/NATIONAL CITY ANALYSIS OF COMPUTATION OF RATE INCREASE RECYCLING PROGRAM The following are the anticipated costs and revenues for the citywide curbside recycling program to commence on July 1, 1991: OPERATING EXPENSES: Labor $ 69,506 Labor Fringe 29,753 Equipment 46,539 Other Direct 17,769 Processing 21,374 Administrative 4,712 Other 6,324 Less: Dump Fee Savings 116.387) TOTAL OPERATING EXPENSES 179,590 REVENUES: Sale of Recyclables 41.858 NET COST 137.732 NET COST PLUS FRANCHISE FEE $ 140.542 PERCENT OF 1991 FORECASTED REVENUE REQUIRED ($2,386,000) 5.90% THREE MONTHS UNRECOVERED RECYCLING COST: UNRECOVERED PORTION (OCTOBER ONLY) $ 35.136 PERCENT OF 1991 FORECASTED REVENUE REQUIRED ($2,386, 0001 1.48 % See Report in Connection with Rate Review -6- ITEM 830 PILOT NOV DEC JAN FEB MAR APR Old newspapers 4.75 3.45 2.89T 2.89 3.47 3.52 Glass 1.66 1.27 1.06 1.06 .92 1.08 Clear ( .62) ( .64) 2-color ( .30) ( .44) Aluminum .21 .085 .09 .06 .01 .02 Tin .12 .145 .15 .11 .13 .15 Mixed Paper 1.7 1.50 1.09 .97 1.05 1.22 Plastics .15 .21 .22 .22 .27 .27 PET ( .05) ( .07) ( .07) ( .07) ( .06) ( .06) HDPE ( .10) ( .14) ( .15) ( .15) ( .21) ( .21) TOTAL TONNAGE 8.59 6.66 5.59 5.31 5.85 6.26 LBS/HOUSE/SET OUT 14.52 16.05 14.07 13.3 15.0 15.05 SET OUT RATE 33% 24% 23% 22% 22% 23% PARTICIPATION RATE 49% 36% 34% 33% 33% 34% Attachment I RECYCLERSiAVE AN IMPAC'r! Curbside recycling is saving resources and landfill space, see the chart below for statistics on your city's recycling efforts in 1990. If you're not participating in your area's curbside recycling program you're throwing away valuable resources, and wasting landfill space, call 287-5612 to find out how you can participate! TIME SPAN TOTAL HOMES SERVED AV. MONTHLY PARTICIPATION * CORONA DO NATIONAL CITY 12 MONTHS 3 MONTHS LA MESA LEMON GROVE rv!^ 12, MONTHS 12 MONTHS 700 830 11500 7,000 79.5% 39% .5% 46% SANTEE ENVIRONMENTAL roiLo� �4v0 SAVINGS 8 MONTHS 3,500 64% ALUMINUM TIN (BI-METAL CANS) GLASS PET (1) HDPE (2) NEWSPAPER MIXED PAPER TOTAL 2.42 TONS .345 TONS 31.03' TONS 9.19 TONS- 6.17 TONS 3.24 .355 48.31 13.81 9.66 45.85 3.72 457.76 118.84 80.79 .75 .14 12.86 4.50 3.16 1.53 .27 25.92 9.78 6.83 94.62 9.77 1319.71 366.98 232.66 53.40 4.19 674.77 157.11 103.26 201.81 18.79 2570.36 680.21 *Rate plus or minus 5.5% (1) Polyethylene Terephthalate (2) High Density Polyethylene 442.53 13,916,626 Kilowatt hours of electricity 51,280 trees 9,954`cubic' yards of landfill space KEEP RECYCLING! Ali figures for year 1990 THE COSTS OF OUR WASTE Many citizens have contacted San Diego Recycling regarding the costs of recycling and waste disposal. Some people feel that because they are now cutting back on the amount of trash they dispose of, and since recyclables can be sold, recycling should be free. However, as with any new program, there are many start-up costs, such as purchasing recycling trucks and bins; hiring of drivers and other necessary staff: and preparation of the processing center. Moreover. there are the ongoing costs of collection of materials; clean- ing, sorting, and processing of recyciables; and operational overhead. The revenue generated from the recyclables collected do not cover these ongoing operational costs at the present time. As many of you are aware because of the recent start-up of so many recycling programs. additional volumes of recyclable materials are being marketed, thus lowering the price that recycling processors, such as SDR, receive for their materials. As manufac- turers and consumers begin to use more products made from recycled materials, the markets should improve. Disposal costs are also rising. Landfill tipping fees (disposal fees) have risen significantly over the past year, and will continue to rise as landfills begin to reach capacity and new disposal sites must be found. Disposal cost fees are becoming a larger component of EDCO's operating cost. Rising inflation has also impacted the costs of waste disposal and recycling through higher labor, fuel, insurance, and maintenance costs. Thus. disposing of trash or collecting and processing recyclables is expen- sive, and as in any industry, these costs must be passed down to the consumer. In the long run, recycling may be more cost effective, since sales of recyclables do off -set some of the costs, but fees for both services may always be neces- sary. Also, recycling will lower the amount of waste going to landfills, thus extending the life of the landfill and helping to keep the long term costs of disposal lower. The benefits of recycling, including reducing our waste disposal needs (and thus saving landfill space), savings in resources (including energy and water), and overall reduction in water, air, and land pollution (through reuse of recycled resources) are not always apparent to the resident recyceer, but are nonetheless very important when thinking about the costs and benefits of recycling. These benefits may not be reflected in the immediate costs of recycling programs or waste disposal services, but will be beneficial to all of us in the future. rig -3- MONTHLY REFUSE AND RECYCLING RATES OF INCORPORATED CITIES EFFECTIVE APRIL 1, 1991 RES. RECY. RES. MAIN REFUSE FRANCHISE COMM. CITY RATE FEE TOTAL CONTRACTOR RECYCLER FEE BIN RATE CARLSBAD 8.60 1.00 9.60 COAST LIBERTY RECYCLING 5% 58.20 CHULA VISTA 9.46 1.10 10.56 LAIDLAW LAIDLAW 7% 53.20 DEL MAR 9.90 0.78 10.68 COAST SOLANA RECYCLERS 5% 67.37 EL CAJON 8.80 (C) 8.80 UNIVERSAL SEE FOOTNOTE (C) 3% 52.00 ENCINITAS 9.80 0.78 10.58 COAST/MASHBURN SOLANA RECYCLERS 5% 55.85 ESCONDIDO 7.54 1.43 8.97 ESCONDIDO DSP ESCONCICO DSP 10% 49.38 IMPERIAL BCH 9.60 1.05 10.65 LAIDLAW LAIDLAW (D) 43.20 LA MESA 9.34 1.61 10.95 EDCO SAN DIEGO RECY. 4% 58.40 LEMON GROVE 8.61 1.14 9.75 EDCO SAN DIEGO RECY. 5.5% (A) 56.45 PROPOSED 10.12 1.18 11.30 EDCO SAN DIEGO RECY. 5.5% (A) 65.75 NAT'L CITY 8.75 0.00 8.75 EDCO SAN DIEGO RECY. 2% 54.25 OCEANSIDE 11.80 0.00 11.80 OCEANSIDE DSP OCEANSIDE DSP N/A 37.99 POWAY 12.80 0.00 12.80 LAIDLAW/MASHBURN NONE (B) SAN MARCOS 8.70 1.26 9.96 MASHBURN MASHBURN 5% 55.90 SOLANA BEACH 9.55 0.78 10.33 COAST/MASHBURN SOLANA RECYCLERS (B) 55.00 VISTA 8.70 0.81 9.51 VISTA SANI. VISTA SANI. 5% 56.20 NOTE: THESE RATES DO NOT INCLUDE THE UP-COMMING DISPOSAL FEE INCREASE. (A) THE FRANCHISE FEE IS CURRENTLY 5.5% BUT IT INCREASES BY 1/2% PER YEAR UP TO A CEILING OF 10%. (B) FRANCHISE FEE IS BASED ON $1,000 PLUS $2.00 MULTIPLIED TIMES THE CUSTOMER BASE, PER YEAR (C) RECYCLING BY UNIVERSAL TO BEGIN 7/01/91 AT FEE OF $1.48. (D) FRANCHISE FEE IS 49,559.55/MONTH _ap .ctp I a 3 h- YPSs/ a wahe (_S cdcy-Us v'PC ne - / r rc1 cashes) 4.1 dry e.rs / ie-c9 / I T.' V e 6(.10 he..5 / 3 wcL4e1 h er.�-fer5 1 a. C' ccr ffi 1cz 1,-• -ciU l 0 1L r-e ccrveito-f6 r5 / I +o Je / T1/ / 1 rij l Tpi� h t,Jc4ShP t'_ I / awn mdtle.r /-1_ 4 b(-e / (0 Cha ire nicd-+-r 6 / 3 wos/ j5 / t dry -or 1 i V/ 3 refric� I Ousher / -1-0;ie.f / a evue;Lp,c Ke- -)4 l 1dry Pr / 1 bre, kaL1-90 1 d re sse r / 3 m ck yos 7 1 hoy Spri I ref,- 1" I ►-"r1,e?0r / I Su.)inq / (1 o C.ce►-4 _ Y11614-4-t-e S5 / 1 i a' Crr.ir t P0c10 / 1 rii >7 v.< yaks h0, r 3 t.c>r,/vi e 's / bo ers a •5 Li / 1 rlryor/ -a -k-/i Ye ;s f R o oc ie hes 1 ,nL 1 -oie of 62,v10 h es / a LAsher,S ix,e re c r,i 5 / i C' Ct rn pe hQ / J 1 rn G -res ,S Ake 45 p-5 _Su_ iyi ts'y-L+e-rnS % kPr q-qo 3 a cou l- p / 1 rPc-c / 1 dcyey / (Wcsher 1-1-ctb1-2 7 '`{ S o--cs4 / 1 Preez�° I c a b i n -e..i- / 1► -4-F}(eS S/ 1 coosiu -q 1 5 q ma- re5 / 1 )>c 'r i / 1 5-kwe Ye riq. / 1 (try()) -19-9 - I .6-Awe / l k- m S -)-'Ye e_/ l re-vi �9 EoX 5eri(1 7 /r3`ma`1-'Q5S / ) (✓aShi / / dryer. / oueA, c hai r5 / / tda+er )-)4)(-1-e17- -ac0-q I 1 rDlr C arpQi / 3 eor.teheS / 1 hit, r / a rnc-{tress 9 / / / x`rea 5 -M-e e /Q ,-1-1-res I b1 Cye l� / 1 roll ('ra✓ref / 1 �1-ab�� f T- v / 1 w 1 r1q S� f -q-9l .0 h i S V l ,Lrte✓ 1-Qctier'1p Cab i ne1S v-oil Cetrpof v /a y tv1G f-fres,S S e ha i rs / 1 re Piq .1 Lc)o 1 mael1! ae / t JQacl boar( wale r • heoce rS ( c.J a-1•P r h o cz-W r/ 3-01-91 1c.- 5 - (,t_6)es/ C he r YN 9 / 3 C',ou(+, h P,S /tt)(trlen _hae a A-;ces /5dryers/troll oco,pP-i 3�)�Q-ctl aclr - 1 (A-)cr ]/e6ti-ex,5 / �a Cn(.c0 h eS I osh mach; ne/er� 1 k / rm,,-N-1E: % g rk.temc no no pre (,tps- ry-Icci-i-(e_c,s CN hqa rollS Ct rOP- / I anx )0(1;75 / I �v�imrll i n( p P n 1 / ( T. �/. / 1 t,L i t .so G7ccfe Pt f rPi ('r5r rin'IS s o. / 5 C hr, i / r -cc(e. curlc(4t -Qs- / / 307( 5prI nc by i%:L t c. NATIONAL CITY RATE SCHEDULE 7-1-91 RUBBISH AND GARBAGE CURRENT PROPOSED MONTHLY MONTHLY RATE RATE 1. RESIDENTIAL Per month residential single family properties. 8.75 10.10 For the second and for each additional residential unit in multiple dwellings which do not exceed four units 6.60 7.60 2. TRAILER PARKS AND MOTELS (5.00 MINIMUM) One time per week, per unit, per month 6.20 7.15 3. APARTMENT HOUSES (NO MINIMUM) One time per week, per unit, per month 6.15 7.10 4. SENIOR CITIZEN -RESIDENTIAL Per month 7.10 8.20 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE October 22, 1991 AGENDA ITEM NO, 13 ITEM TITLE PERIODIC REPORT OF EDCO ACTIVITIES PREPARED BY C. R. Williams, Jr DEPARTMENT Public Works EXPLANATION The attached report from EDCO (San Diego Recycling Company) provides the September status of the major items included in the most recent contract revision. J Environmental Review X N/A Financial Statement N/A Account No. N/A STAFF RECOMMENDATION File. BOARD/COMMISSION RECOMMENDATION N/A ATTACHMENTS (Listed Below) Resolution No. N/A San Diego Recycling Co. letter of October 11, 1991. A-200 (Rev. 9/80) EAN DIEGO REC%LINGCO. 6700 Federal Blvd. • Lemon Grove • CA 91945 •.,(619) 28' 561rib Fax (619) 287-5242 Mr. Curt Williams Public Works Director City of National City 2100 Hoover Ave. National City, CA 92050 RE: Status Update Dear Mr. Williams: flUtI October 11, 1991 Based upon the discussions of the meeting held at EDCO on 10-3-91, the following information is provided. RECYCLING REPORT 1. TONNAGE: Actual Projected Actual Projected Tons Tons Revenue Revenue September 63 59 $3129 $3488 The actual tons exceeded the projections, however, the actual revenue was lower than projected. This can most likely be attributed to the low scrap value of glass, which is much lower than our projections anticipated. 2. PARTICIPATION September 34% set out rate 51-61% participation rate This is a very stable rate of participation for a 2-3 month old program. This rate should gradually increase over the next few months. 3. PUBLICITY To date there has been articles and an advertisement in the local newspaper and an insert in the latest EDCO billing. Theses activities have resulted in a higher level of awareness of the program. Future publicity efforts include contacting the local schools to set up presentations, and the local service clubs. 4. MULTI FAMILY This program is currently scheduled to begin implementation in July of 1992 and should be completed in a 4-6 month time frame. Any rate relating to the multi family program will be established and presented to council in April. Recycled Paper, Naturally (10% postconsumer, 40% preconsumer) printed with environmentally conscious soy -based ink. AN EDCO DISPOSAL CORPORATION COMPANY J s Mr. Curt Williams October 11, 1991 Page 2 5. COMMERCIAL This program has already begun to be implemented on a voluntary basis and will continue in this manner. Mandatory commercial recycling will be at a later date, but now later than July 1993. 6. BULKY ITEMS From October 1990 - September 1991 a total of 55.5 tons of bulky items have been collected. The January issue of the newsletter will discuss the bulky item program. 7. CLEAN UPS The May 1991 clean up resulted in 48 loads being delivered to the landfill which is equivalent to 328 tons of material. The next clean up is set for 11-16-91. Submitted by, Coy Smith Executive Director TYPE OF INSURANCE A001:1). PRODUCER Solid Waste Ins. Mgrs. P.O. Box 7072 Pasadena, CA. 91109 INSURED Edco Disposal Corp. Inc. Etal 6670 Federal Boulevard Lemon Grove MAWS THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. Ca 92045 LE BATE (MMfbb/YY) 10/29/91 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW COMPANY A LETTER COMPANY B LETTER COMPANY `. LETTER COMPANY D LETTER COMPANY E LETTER COMPANIES AFFORDING COVERAGE CALIFORNIA INS CO (IND) CALIFORNIA INS CO (IND) CALIFORNIA INS CO (IND) CO 1LTR' A: GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY CLAIMS MADE. X ! OCCUR. OWNER'S & CONTRACTOR'S PROT. B AUTOMOBILE LIABILITY X ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS X HIRED AUTOS X NON -OWNED AUTOS GARAGE LIABILITY EXCESS LIABILITY UMBRELLA FORM OTHER THAN UMBRELLA FORM WORKER'S COMPENSATION AND EMPLOYERS' LIABILITY E, OTHER PHYSICAL DAMAGE POLICY NUMBER OR9591681 POLICY EFFECTIVE POLICY EXPIRATION'. DATE (MM/DD/YY) DATE (MM/DD/YY) 10/15/91 10/15/92 0R9591681 10/15/91 JE01672/ 0226 HXL269577 10/15/92 10/1P/91 i8 /155/92 0R959168 1 10/15/91 10/15/92 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS RE: RUBBISH HAULING ENDORSMENT CG20101185 ATTACHED T. CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD. NATIONAL CITY, CA. 92050 ACORA 25-S (1 f/$9) ALL LIMITS IN THOUSANDS GENERAL AGGREGATE $ 2000 PRODUCTS-COMP/OPS AGGREGATE $ 1 0 00 PERSONAL & ADVERTISING INJURY $ 10 00 EACH OCCURRENCE $ 1 000 FIRE DAMAGE (Any one fire) $ 50 MEDICAL EXPENSE (Any one person) $ 5 COMBINED SINGLE $ LIMIT BODILY INJURY $ (Per person) BODILY INJURY $ (Per accident) PROPERTY $ DAMAGE 1000 EACH AGGREGATE OCCURRENCE STATUTORY $ (EACH ACCIDENT) $ (DISEASE —POLICY LIMIT) (DISEASE —EACH EMPLOVEEi $1,000 DED. COMP $1,000 DED. COLL At4PE,t1%ATN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL aRIMILVOIMPPOR MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE AUTHORIZED REPRESENTATIVE n .� n POLICY NUMBER: OR9591681 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifiesinsurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name of Person or Organization: RUBBISH HAULING CITY OF NATIONAL CITY AND ITS OFFICERS, AGENTS, AND EMPLOYEES AS ADDITIONAL INSURED, (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you. "IT IS FURTHER AGREED THAT SUCH INSURANCE AS IS AFFORDED BY THIS POLICY FOR THE BENEFIT OF THE ADDITIONAL INSURED SHOWN ABOVE SHALL BE PRIMARY INSURANCE, BUT ONLY AS RESPECTS ANY CLAIMS, LOSS OR LIABILITY ARISING OUT OF THE OPERATONS OF THE NAMED INSURED SHALL BE NON-CONTRIBUTING. CG 20 10 11 85 Copyright, Insurance Services Office, Inc., 1984 ❑ EDCO Disposal Corporation Rialto Services, Inc. A-1_Disposal.-Company La Mesa Disposal Service Waste Transporting Company San Diego Refuse Company San Diego Recycling Thomas & Sons Disposal Fallbrook Refuse Service National City Rubbish Service Park Disposal Signal Hill Disposal S.E.J. Trucking, Inc. Litter Box Containers Edward G. Burr & Sandra L. Burr (as respects those covered locations owned by them) Dependable Garbage Service Reliable Disposal Service Tri-County Disposal Sanco Equipment Corporation °lid Waste Ins. Mgrs. P.O. Box 7072 Pasadena, CA. 91109 INSURED Edco Disposal Workers Compensation 6670 Federal Boulevard Lemon Grove Ca 92045 C 074 ;� ISSUE DATE (MM/DD/YY) 12/16/91 NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW COMPANY A LETTER COMPANY B LETTER COMPANY `. LETTER COMPANY D LETTER COMPANY E LETTER COMPANIES AFFORDING COVERAGE BUILDING AND SAFETY DEP RECEIVED JAN a 3 1992 U n i c a r e NATIONAL CITY, CALIF. BCO LTR y.. GENERAL LIABILITY 1 COMMERCIAL GENERAL LIABILITY IVEaA ;� ; THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. POLICY EFFECTIVE POLICY EXPIRATION DATE (MM/DD/YY) DATE (MM/DD/YY) TYPE OF INSURANCE CLAIMS MADE OCCUR. OWNER'S & CONTRACTOR'S PROT. AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS GARAGE LIABILITY EXCESS LIABILITY OTHER THAN UMBRELLA FORM WORKER'S COMPENSATION AND EMPLOYERS' LIABILITY OTHER POLICY NUMBER UCA011863 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS RE: RUBBISH HAULING ICAT HOLDER - ITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD. NATUAL CITY, CA 92050 12/01/91 CANCELLAT SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE ANY, ITS AGENTS ORr E' 'ESENTATIVES. 12/01/92 ALL LIMITS IN THOUSANDS GENERAL AGGREGATE $ PRODUCTS-COMP/OPS AGGREGATE $ PERSONAL & ADVERTISING INJURY $ EACH OCCURRENCE '$ FIRE DAMAGE (Any one fire) MEDICAL EXPENSE (Any one person) $ COMBINED SINGLE $ LIMIT BODILY INJURY $ (Per person) BODILY INJURY $ (Per accident)'. PROPERTY DAMAGE EACH OCCURRENCE $ $ STATUTORY 1000 1000 1000 AGGREGATE (EACH ACCIDENT) (DISEASE —POLICY LIMIT) (DISEASE —EACH EMPLOYEE 10OAY NO ICE OF CANCELLATION 1N THE EVENT Of NON PAYMENT PREMIUM C. ACORD CORPORATION 19139 -411 • Named Insured EDCO Disposal Corporation Rialto Services, Inc. A-1 Disposal Company La Mesa Disposal Service Waste Transporting Company San Diego Refuse Company San Diego Recycling Thomas & Sons Disposal Fallbrook Refuse Service National City Rubbish Service Park Disposal Signal Hill Disposal Litter Box Containers Dependable Garbage Service Reliable Disposal Service Tri-County Disposal Sanco Equipment Corporation