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Home My WebLink AboutEDCO Disposal Corporation - Rate Adjustment - Decrease - 1997RESOLUTION NO. 97-68 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A REFUSE SERVICE RATE CHANGE FOR EDCO DISPOSAL CORPORATION, AND ESTABLISHING A REFUSE ENTERPRISE FUND WHEREAS, the last refuse service rate change for Edco Disposal Corporation, the City's contract refuse hauler, was in June 1996; and WHEREAS, the rate for waste disposal is estimated to be $32.00 per ton on July 1, 1997; and WHEREAS, a public hearing was held to consider the refuse service rate change at the regularly -scheduled City Council meeting of June 10, 1997, notice of which hearing was published according to law in a newspaper of general circulation in the City. At said hearing, the City Council considered oral and written evidence presented by the City Council, staff, and members of the public. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the proposed refuse service rate schedule, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, is hereby approved, effective July 1, 1997. Said document is filed in the office of the City Clerk. BE IT FURTHER RESOLVED that a Refuse Enterprise Fund is hereby established to provide rate stabilization and to be used for refuse related purposes including AB 939 expenses, litter control, City assistance at Citywide cleanup, special studies, staff support and other related functions. Continued on Page Two Resolution No. 97-68 Page Two PASSED and ADOPTED this 10th day of June, 1997. George H. aters, Mayor ATTEST: Michael R. Dall , City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney BOX TYPE REFUSE SERVICE NATIONAL CITY RATE SC `.OULE July 1, 1997 CURRENT PROPOSED MONTHLY MONTHLY RATE RATE COLLECTION NUMBER FREQUENCY OF BINS 1 1 $87.04 $84.54 2 1 $146.92 $ 142.71 3 1 $206.81 $200.88 - 4 1 $268.46 $260.76 5 1 $330.11 $320.64 6 1 $391.75 $380.52 7 1 $453.40 $440.40 1 2 $148.69 $ 144.42 2 2 $266.70 $259.05 3 2 $384.71 $373.68 4 2 $500.96 $486.59 5 2 $617.21 $599.51 6 2 $733.46 $712.43 7 2 $849.71 $825.34 1 3 $210.33 $204.30 2 3 $382.95 $371.97 3 3 $555.56 $539.63 4 3 $726.41 $705.58 5 3 $897.27 $871.54 6 3 $1,068.12 $1,037.49 7 3 $1,238.97 $1,203.44 1 4 $271.98 $264.18 2 4 $499.20 $484.88 3 4 $726.41 $705.58 4 4 $951.87 $924.57 5 4 $1,177.32 $1,143.56 6 4 $1,402.78 $1,362.55 7 4 $1,628.23 $1,581.54 1 5 $333.63 $324.06 2 5 $615.45 $597.80 3 5 $897.27 $871.54 4 5 $1,170.28 $1,136.72 5 5 $1,443.29 $1,401.90 6 5 $1,716.30 $1,667.08 7 5 $1,989.31 $1,932.27 1 6 $395.28 $383.94 2 6 $731.70 $710.72 3 6 $1,068.12 $1,037.49 4 6 $1,393.97 $1,354.00 5 6 $1,719.82 $1,670.51 6 6 $2,045.68 $ 1,987.01 RUBBISH AND GARBAGE 1. RESIDENTIAL Per month residential single family properties For the second and for each additional resiaential unit in multiple dwellings which do not exceed four units 2. TRAILER PARKS AND MOTELS One time per week, per unit, per month 3. APARTMENT HOUSES One time per week, per unit, per month 4. SENIOR CITIZEN RESIDENTIAL Per month 5. COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS Up to (2) 40 gallon containers Or (1) 90 gallon automated cart One time per week, per month Up to (2) 40 gallon containers Or (1) 90 gallon automated cart Two times per week, per month Up to (2) 40 gallon containers Or (1) 90 gallon automated cart Three times per week, per month Up to (2) 40 gallon containers Or (1) 90 gallon automated cart Four times per week, per month Up to (2) 40 gallon containers Or (1) 90 gallon automated cart Daily (six days/Monday-Saturday) Additional or unusual accumulation of rubbish (per cubic yard) NATIONAL CITY RATE SCHEDL _E July 1, 1997 CURRENT PROPOSED MONTHLY MONTHLY RATE RATE EXHIBIT "A" $14.36 $13.95 $11.33 $11.00 $9.96 $9.67 $10.11 $9.82 $11.49 $11.16 $16.46 $15.99 $26.21 $25.46 $33.69 $32.72 $41.64 $40.44 $54.38 $52.82 $10.20 $9.91 Passed and adopted by the Council of the City of National City, California, on June 10, 1997, by the following vote, to -wit: Ayes: Council Members Beauchamp, Inzunza, Morrison, Zarate, Waters. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: GEORGE H. WATERS Mayor of the City of National City, California Civ Clerk of the C. of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 97-68 of the City of National City, California, passed and adopted by the Council of said City on June 10, 1997. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE June 10, 1997 E AGENDA ITEM NO. A PUBLIC HEARING TO CONSIDER A REFUSE RATE REDUCTION REQUEST FROM EDCO, AND CONCURRENT ESTABLISHMENT a ref enterprise fund PREPARED BY C.R. Williams, Jr. DEPARTMENT Public Works EXPLANATION Based upon jointly projected costs, EDCO is recommending a rate DECREASE in Single family refuse service from the present $14.36 per month to a new rate of $13.95 per month. Basic rates for apartments will show a corresponding decrease, and the slightly improved apartment recycling rate warrants recommending that the current $0.54/UNIT/MONTH recycling fee be reduced to $0.51/UNIT/MONTH. Other components of service will receive reductions, comparable to the $13.95. The silver bag program was scheduled to increase this year but with the overall rate reduction it is recommended that the silver bag program not increase and that it stay at $1.85/bag. Staff is recommending the concurrent establishment of a REFUSE ENTERPRISE FUND to provide a source for refuse related expenditures and to provide for rate stabilization and the Notice of Public Hearing and Proof of Publication are on file in the office of the City Clerk. 1 Environmental Review X N/A Financial Statement Benefits from the refuse rate reduction will accrue to the citizens increase in Franchise fees to 7% will largely off -set the reduced The Enterprise fund will generate about $365 000 STAFF RECOMMENDATION Hold public hearing. BOARD/COMMISSION RECOMMENDATION N/A and businesses of National City. The charges upon which fees are based. Account No. N/A ATTACHMENTS ( Listed Below) EDCO letter of 30 May 1997 Deloitte & Touche letter of 30 April 1997 Resolution No. A-200 (Rev. 9/80) FY-98 EDCO RATE REVIEW BACKGROUND: • The contract with EDCO provides for an annual rate review in June of each year. Changes in landfill costs are to be treated as pass -through costs, and the contractor is entitled to an increase based upon the San Diego C.P.I. with a 6% cap. The C.P.I. increase for FY-98 is 2.9%. • The figures upon which the rate is based are subject to review (but not an audit as such) by an audit firm selected by the City and paid by the contractor. (Deloitte & Touche LLP has been selected for the past few years and their report is attached). • The funds received for sale of recycled materials are to be used by the contractor as a negative cost (that is, funds are to the benefit of City customers, and are used to decrease the rates charged). The market for recyclables is projected to remain as it has been. • The franchise fee will increase by 1 % to a total of 7% in accord with the contract. • The tipping fee (the cost to dispose of refuse at the landfill) is predicted to be $32.00 per ton, effective 1 July 1997. The contractor has been instructed to base his rate calculations on that rate for the entire Fiscal Year period. • The FY-98 proposed rate for refuse contains two new components: one, a significant over -collection by EDCO because of tip fee rate reductions; and, two, a recommendation for establishment of a Refuse Enterprise Fund. These items are interrelated in that both have impacts on short and long term rates and should be reviewed together. Pass -through Costs: In establishing rates, costs and quantities of pass -through items are estimated, and the amounts associated with each are used as a basis for the rate. If all estimates are very good, costs equal planned amounts. Experience has been, however, that there have been variances from estimates, causing the contractor to either over -collect or under -collect funds. The amounts have been minor and have been applied to rates the following year (e.g. if some element were over -collected, then that portion of the rate would be artificially lowered so that over the year the contractor would "pay back" over -collected monies - similarly in the event of under -collecting). These adjustments have in the past been small. They did affect two years' rates however - the following year when the correction was applied and the subsequent year when the correction was removed. With the changes this year we have experienced in tip fees ($40 to $38, to $32 and potential wide swings in the future) the amounts over-collected/under-collected are significant for FY-97 amounting to about $139,000 and could also be significant in FY-98 and beyond. This amount sets the stage for an alternate approach to dealing with these over/under-collections for pass -through costs. Specifically, the contractor has been directed to summarize all of the under-collection/over collections for FY-97; and rather than plowing them into the FY-98 rate, to rebate those monies directly to the City, to permit establishment of a REFUSE ENTERPRISE FUND. The workings of the fund are described elsewhere, but generally under-collections/over- collections would be accommodated from this fund, rather than impacting directly on rates for the following year. To ensure integrity of the fund, an additional amount would be assessed as a contractor cost in rate development. This will permit the Fund to bear the thrust of under-collection/over-collection rather than the rate directly, and would be part of the rate setting process. The Fund would also be used to meet the City's refuse related costs such as special studies, litter control, AB939 requirements, staff support to refuse, etc.. Refuse Enterprise Fund: The previous method of dealing with over-estimates/under-estimates of contractor pass - through costs (that is by melding monies so under or over collected into the following years rate), while fair in the past, is no longer appropriate. As discussed, the swings in tip fees and to a lesser extent in other pass -through costs have generated significant balances that should be discussed and budgeted at Council level. A REFUSE ENTERPRISE FUND would meet this need for control, and its establishment is recommended. Generally the FUND would provide for expenditures that are refuse related only, and would be as a result of a budget approved by Council. The use of The Fund for rate adjustments would be a part of the rate setting process. The results of FY-97 and prior year adjustments has resulted in an over collection by the Contractor of some $139,000. This amount will be rebated to the City in the FUND in 12 monthly installments based upon monthly collection. A mechanism must also be established to ensure the integrity of the FUND. That will be accomplished by designating an annual contribution to the fund as a contractor's cost element. That amount for FY-98 is set at $219,000 to be provided to the City in 12 monthly installments also based upon monthly collection. As indicated the fund would be used for refuse related purposes only. There are a number of refuse related functions that are now on -going (and a few that are not) that are required to be accomplished by the City in our approved AB939 Plans. Other functions such as litter control, City assistance at the City-wide Cleanup events, special studies, staff support including legal and contract administration are examples of work items so closely related to refuse that they should be funded by REFUSE. With Council approval of the concept as herein outlined, the City Manager will cause the REFUSE ENTERPRISE FUND to be established and will cause rate setting and budgeting procedures to be developed. For FY-98, proposed expenditures will be brought to Council. For FY-99 and future years, the REFUSE ENTERPRISE FUND will be routinely budgeted. PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Diego: I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above - entitled matter. I am the principal clerk of the printer of the STAR -NEWS, a newspaper of general circulation, pub- lished ONCE WEEKLY in the city of National City and the South Bay Judicial District, County of San Diego, which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of San Diego, State of California, under the date of April 23, 1951, Case Number 182529; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: 5/31 all in the year 1997 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Chula Vista, California 91910 this 31st day of May INCIPLE CLER ,19 .97 This space is ror the County Clerk's filing stamp Proof of Publicaton of: NC #13013 Notice of Public Hearing City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla - City Clerk (619) 336-4226 Fax (619) 336-4376 NOTICE OF PUBLIC HEARING 111ASH SERVICE RATE CHANGE FOR EDCO DISPOSAL CORPORATION NOTICE IS HEREBY GIVEN that the City Council of the City of National City will hold a public hearing after the hour of 6:00 p.m., Tuesday, June 10, 1997, in the City Council Chambers, Civic Center, 1243 National City Boulevard, National City, to consider: APPROVAL OF A TRASH SERVICE RATE CHANGE FOR EDCO DISPOSAL CORPORATION Anyone interested in this matter may appear at the above time and place and be heard. If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the undersigned, or to the City Council of the City of National City, at or prior to, the public hearing. DA I'ED: May 22, 1997 Michael R. Dal a City Clerk of the City of National City, California ® Recycled Paper 0IISIP SAS CORPp- 1IcaN 6670 Federal Boulevard, Lemon Grove, California 91945 (619) 287-7555 Fax (619).287-5242 May 30, 1997 • City of National City 1243 National Avenue National City, California 92050 Honorable Mayor and Members of the City Council: The Refuse Collection and Recycling Agreement between the City of National City and EDCO Disposal Corporation provides for certain periodic rate adjustments. The contract allows for a pass through of changes in the disposal site fee and annual adjustments by the amount of the local consumer price index. Fortunately, San Diego County landfill tipping fees have been reduced to $32 per ton from the previous $40 per ton. Disposal fees for yardwaste have also been reduced. In accordance with the Agreement, the franchise fee will increase from 6% to 7% on July 1, 1997. and we are requesting an adjustment for operating expenses based on the most recent CPI index of 2.9%. Also, Following staff direction, an element has been added to the rate structure to support the new Trash Enterprise Fund. We are pleased to bring forward a fourth straight rate reduction. The overall effect on the residential rate is a reduction of $0.41 in the residential rate and of $2.50 in the commercial rate. EDCO continues to offer a 20% discount for senior citizens in National City. As in prior years, EDCO's requests for rate increases have been subjected to independent review by the auditing firm of Deloitte & Touche. Their report supports our request for a fair and reasonable rate adjustment. Please approve the attached rate schedule to be effective July 1, 1997. As always, thank you for your consideration. Respectfully, EDCO Disposal Corporation it Edward Burr President Pnn[ed on Recycled Payer A WASTE COLLECTION AND RECYCLING COMPANY NATIONAL CITY RATE SCHEDL_E July 1, 1997 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 $14.36 $13.95 $11.33 $11.00 2. TRAILER PARKS AND MOTELS One time per week, per unit, per month $9.96 $9.67 3. APARTMENT HOUSES One time per week, per unit, per month $10.11 $9.82 4. SENIOR CITIZEN RESIDENTIAL Per month $11.49 $11.16 5. COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS Up to (2) 40 gallon containers Or (1) 90 gallon automated cart One time per week, per month Up to (2) 40 gallon containers Or (1) 90 gallon automated cart Two times per week, per month Up to (2) 40 gallon containers Or (1) 90 gallon automated cart Three times per week, per month Up to (2) 40 gallon containers Or (1) 90 gallon automated cart Four times per week, per month Up to (2) 40 gallon containers Or (1) 90 gallon automated cart Daily (six days/Monday-Saturday) Additional or unusual accumulation of rubbish (per cubic yard) $16.46 $15.99 $26.21 $25.46 $33.69 $32.72 $41.64 $40.44 $54.38 $52.82 $10.20 $9.91 BOX TYPE REFUSE SERVICE NATIONAL CITY RATE SCHED E July 1, 1997 CURRENT PROPOSED MONTHLY MONTHLY RATE RATE COLLECTION NUMBER FREQUENCY OF BINS 1 1 $87.04 $84.54 2 1 $146.92 $142.71 3 1 $206.81 $200.88 4 1 $268.46 $260.76 5 1 $330.11 $320.64 6 1 $391.75 $380.52 7 1 $453.40 $440.40 1 2 $148.69 $144.42 2 2 $266.70 $259.05 3 2 $384.71 $373.68 4 2 $500.96 $486.59 5 2 $617.21 $599.51 6 2 $733.46 $712.43 7 2 $849.71 $825.34 1 3 $210.33 $204.30 2 3 $382.95 $371.97 3 3 $555.56 $539.63 4 3 $726.41 $705.58 5 3 $897.27 $871.54 6 3 $1,068.12 $1,037.49 7 3 $1,238.97 $1,203.44 1 4 $271.98 $264.18 2 4 $499.20 $484.88 3 4 $726.41 $705.58 4 4 $951.87 $924.57 5 4 $1,177.32 $1,143.56 6 4 $1,402.78 $1,362.55 7 4 $1,628.23 $1,581.54 1 5 $333.63 $324.06 2 5 $615.45 $597.80 3 5 $897.27 $871.54 4 5 $1,170.28 $1,136.72 5 5 $1,443.29 $1,401.90 6 5 $1,716.30 $1,667.08 7 5 $1,989.31 $1,932.27 1 6 $395.28 $383.94 2 6 $731.70 $710.72 3 6 $1,068.12 $1,037.49 4 6 $1,393.97 $1,354.00 5 6 $1,719.82 $1,670.51 6 6 $2,045.68 $1,987.01 CITY OF NATIONAL CITY RATE REVIEW To be effective July 1, 1997 Page 1 - Summary of Changes to Rate Current Rates C. P. I. Adjustment ( 2.9% of rate less tip fee, and franchise fee) 1.53% Residential Commercial $14.36 $87.04 0.22 1.33 Tip Fee Decrease (reflecting $32 per ton effective 7/1/97) -9.04% (1.30) (7.87) Reversal of Prior Year Adjustment (0.35) (2.15) Yard Waste Tip Fee (0.04) (0.22) Enterprise Fund Contribution 0.94 5.71 Sub -Total 13.83 83.85 (including Current Franchise Fee) Less: Current Franchise Fee 0.86 5.22 Sub -total before Franchise Fee 12.97 78.62 7% Franchise Fee 0.98 5.92 Proposed Rates $13.95 $84.54 -2.86% -2.86% NC797#3.XLS Page 1 CITY OF NATIONAL CITY RATE REVIEW To be effective July 1, 1997 Page 2 - Calculation of C.P.I. Adjustment Monthly Average - Residential Billings Annualized $91,807 Monthly Average - Commercial Billings $198,618 Annualized 2,383,421 Total Annualized $3,485,102 Less 6% Franchise Fee (209,106) Less: Tip Fee (1,431,198) Add: Recycling Costs in Excess of Rate 44,928 Less: Yard Waste Disposal Fee (51,277) Annualized Revenues Tess Landfill and Franchise Fee $1,838,448 Percentage of Total Revenues 53% C.P.I Increase 2.90% C.P.I Adjustment ( 2.9% of rate less tip fee, and franchise fee) 1.53% $1,101,681 NC797#3.XLS Page 2 CITY OF NATIONAL CITY RATE REVIEW To be effective July 1, 1997 Page 3 - Rubbish Tip Fee Pass -Through July, 1996 August, 1996 September, 1996 October, 1996 November, 1996 December, 1996 January, 1997 February, 1997 March, 1997 April, 1997 May, 1997 June, 1997 Total Residential and Commercial Tons Actual Tip Cost FY 6/97 Street Sweeping Tip Cost Actual Tip Cost Prior Year Projected Tip Cost Overcollected Tip Cost Projected Tons Tip Cost effective July 1, 1997 Street Sweeping Tip Cost (at $9) Projected Tip Cost Prior Year Projected Tip Cost Projected Decrease Net Tip Cost Decrease Tons based on prior year Residential Commercial 974.15 2,099.47 841.25 2,087.64 826.79 1,938.74 884.54 2,044.78 734.50 1,824.78 840.55 1,932.74 883.76 2,161.09 775.38 1,819.40 832.65 1,934.04 865.24 2,051.27 897.22 2,050.35 785.72 1,908.66 34,288 10,141.75 23,852.96 $1, 262, 794 2,100 29,397 1,292,192 1,431,198 ($139,007) -3.99% 34,288 $32.00 $1,097,215 Tons 2,100 18,898 1,116,114 1,431,198 (315,085) apply to enterprise fund -9.04% ($454,091) -13.03% sire NC797#3.XLS Page 3 CITY OF NATIONAL CITY RATE REVIEW To be effective July 1, 1997 Page 4 - Summary of Rate Components 7/1/96 Residential Commercial Service Portion Landfill at $40 per ton Multi -family recycling Curbside recycling Yard Waste Collection Franchise Fee at 6% $6.04 $34.91 6.34 39.76 0.08 0.53 0.38 2.37 0.67 4.24 13.50 81.82 0.86 5.22 $14.36 $87.04 Senior Rate $11.49 Silver Bag $1.85 Multi -Family Recycling - Per Unit Charge $0.54 7/1/97 Residential Commercial Service Portion $6.26 $36.24 Landfill at $32 per ton 4.69 29.74 Enterprise Fund Contribution 0.94 5.71 Multi -family recycling 0.08 0.53 Curbside recycling 0.38 2.37 Yard Waste Collection 0.63 4.02 12.97 78.63 0.98 5.92 Franchise Fee at 7% Senior Rate Silver Bag Multi -Family Recycling - Per Unit Charge $13.95 $84.54 o.00 o.00 $11.16 $1.85 S0.51 NC797#3.XLS Page 4 CITY OF NATIONAL CITY RATE REVIEW To be effective July 1. 1997 Page 5 - Yard Waste Tip Fee Pass -Through JuI-95 Aug-95 Sep-95 0ct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96 May-96 Jun-96 Yard Waste Tons & Cost in Current Rate Jul-96 Aug-96 Sep-96 Oct-96 Nov-96 Dec-96 Jan-97 Feb-97 Mar-97 Apr-97 May-97 Jun-97 Actual Yard Waste Tons & Cost '96-'97 Reduction in Tip Fee '96-'97 Projected Tons of Yard Waste '97-'98 Adjustment '97-'98 Total Adjustment Annualized Revenues As a Percentage of Revenues Effect on Rates 7/1/97 RATE TONS TIP FEE $25.00 200.84 $5,021.00 $25.00 208.43 5,210.75 $25.00 205.19 5,129.75 $23.50 187.32 4,402.02 $23.50 172.81 4,061.04 $23.50 112.57 2,645.40 $23.50 159.66 3,752.01 $23.50 132.27 3,108.35 $ 23.50 172.91 4,063.39 $23.50 202.87 4,767.45 $23.50 206.55 4,853.93 $23.50 181.36 4,261.96 2,142.78 51,277 $23.50 207.36 $4,872.96 $23.50 186.70 4,387.45 $23.50 187.17 4,398.50 $23.50 182.25 4,282.88 $23.50 131.78 3,096.83 $23.50 129.04 3,032.44 $23.50 184.41 4,333.64 $23.50 215.55 5,065.43 $23.50 199.63 4,691.31 $19.00 225.35 4,281.65 $19.00 206.55 3,924.45 $19.00 181.36 3,445.84 2,237.15 49,813 (applied to fund) 0 19.00 2,237.15 $42,506 (S8,771) ($8,771) $3,485,102 -0.25% Residential Commercial ($0.04) ($0.22) NC797#3.XLS Page 5 CITY OF NATIONAL CITY RATE REVIEW To be effective July 1, 1997 Page 6 - Curbside Recycling - Summary of Tonnage and Value Tons ONP Mixed Paper All Other Total Jan-96 33.82 21.06 21.95 76.83 Feb-96 32.99 17.99 19.33 70.31 Mar-96 34.41 20.25 20.12 74.78 Apr-96 36.36 20.89 17.18 74.43 May-96 36.10 21.41 24.08 81.59 Jun-96 33.96 18.67 22.12 74.75 JuI-96 34.83 18.96 22.70 76.49 Aug-96 37.79 19.36 21.28 78.43 Sep-96 36.18 20.22 23.09 79.49 Oct-96 37.27 22.16 25.66 85.09 Nov-96 35.78 21.51 23.41 80.70 Dec-96 40.55 22.03 26.36 88.94 430.04 244.51 267.28 941.83 Value ONP Mixed Paper All Other Total Jan-96 $1,338 $126 $1,915 $3,379 Feb-96 1,379 336 1,729 3,444 Mar-96 1,229 341 1,687 3,257 Apr-96 915 169 1,885 2,969 May-96 884 18 2,078 2,980 Jun-96 1,321 48 1,957 3,326 Jul-96 1,174 (40) 1,956 3,090 Aug-96 1,107 (26) 1,801 2,882 Sep-96 1,182 (86) 1,941 3,037 Oct-96 1,092 (185) 2,260 3,167 Nov-96 1,088 (258) 2,092 2,922 Dec-96 856 (352) 2,364 2,868 Totals - Calendar Year 1996 $13,565 $91 $23,665 $37,321 Projected Revenues - Fiscal Year 96-97 $44,928 Revenue Shortfall '96-'97 (applied to fund) 0 Projected Revenues - Fiscal Year 97-98 Adjustment '97-'98 $37,321 SO Total Adjustment $0 Annualized Revenues As a Percentage of Revenues Effect on Rates 7/1/97 Residential Commercial $0.00 $0.00 $3,485,102 0.00% NC797#3.XLS Page 6 Deloitte & Touche LLP Suite 1900 Telephone: (619) 232-6500 701 "B" Street ITT Telex: 4995722 San Diego, California 92101-8198 Facsimile: (619) 237-1755 INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED -UPON PROCEDURES April 30, 1997 Mr. C. R. Williams, Jr. Public Works Department City of National City 2100 Hoover Avenue National City, California 91950-6599 Dear Mr. Williams: We have performed the agreed -upon procedures enumerated below, to accounting records and other items as related to EDCO Disposal Corporation ("EDCO") and San Diego Recycling ("Recycling"), which were agreed to by you, to assist you in establishing a refuse rate for the City of National City and in evaluating your contractual relationship with EDCO and Recycling. This engagement to apply agreed -upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The procedures we performed, which relate primarily to your fiscal 1998 residential refuse rate, are summarized as follows: 1. We read EDCO's internally prepared financial statements for the nine months ended February 28, 1997, and the audited financial statements for the year ended May 31, 1996. We inquired of Dan Gallaher (Controller for EDCO), as to any changes in accounting policies and methods of application which might affect the fiscal 1998 refuse rate for National City. 2. We agreed the fiscal 1997 refuse rate from the prior year's calculation to the refuse rate used in the fiscal 1998 refuse rate calculation. 3. We obtained information from the U. S. Department of Labor - Bureau of Labor Statistics and agreed such information to the amount used in the Consumer Price Index ("C.P.I.") adjustment in the fiscal 1998 refuse rate calculation. DeloitteTouche Tohmatsu International 4. We recalculated franchise fees due to National City for the period from April 1, 1996 to March 31, 1997, to ascertain that they were calculated based on 5% or 6%, as applicable, of cash collected as reported in EDCO's underlying financial records. 5. We read franchise fee remittances made to National City by EDCO for the period from April 1, 1996 to March 31, 1997 to ascertain that they were made on a monthly basis. 6. We agreed San Diego County estimated landfill tip fee of $40.00 per ton projected in the fiscal 1997 rate review process to correspondence from the County of San Diego regarding the Tip Fee Resolution Approved for Implementation July 1, 1996. 7. We agi actual tons of refuse collected for two judgmentally selected days in the period from July 1, 1996 to February 28, 1997 to the supporting landfill tickets. 8. We recalculated the percentage effect of the projected fiscal 1998 San Diego County landfill tip fee decrease on the fiscal 1998 refuse rate. 9. We ascertained that one-time adjustments to the fiscal 1997 refuse rate were properly excluded from the fiscal 1998 refuse rate. 10. We recalculated the difference between the actual annualized revenues from the sale of recyclables and the projected revenues from the sale of recyclables used in the fiscal 1997 refuse rate. 11. We agreed total tons of recyclable materials collected to underlying accounting records for two judgmentally selected months. From the underlying accounting records, we judgmentally selected five daily recyclable totals and agreed those totals to supporting work tickets. We determined the reasonableness of recycling rates as compared to three judgmentally selected recycling receipts. 12. We recalculated the effect of franchise fees on the fiscal 1998 refuse rate. 13. We recalculated the percentage effect of the yard waste disposal fee reduction on the fiscal 1998 refuse rate. 14. We agreed coverage levels of insurance in force to the insurance provider's certificate of insurance to ascertain that such coverage was in compliance with contractual requirements. We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the refuse rate for the City of National City. Accordingly, we do not express such an opinion on the rate. The sufficiency of the procedures is solely the responsibility of the specified users oft is report. Consequently, we make no representation regarding the sufficiency of the agreed -upon procedures described above either for the purpose for which this report has been requested or for any other purpose. Had we performed additional procedures or had we performed an audit in accordance with generally accepted auditing standards, other 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, taken as a whole. - 2 - This report is intended solely for the use of the City Council of National City and the management of EDCO and Recycling and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, it is understood that this report is a matter of public record and its distribution is not limited. Verytrulyyours, - 3 - ■SPOSA■_ CORPCIO RAir ■ON 6670 Federal Boulevard, Lemon Grove, California 91945 (619) 287-7555 Fax (619) 287-5242 Apri123, 1997 City of National City Public Works 2100 Hoover Ave National City, CA 91950 Attn: Curt Williams Dear Curt, Please find enclosed a continuation certificate on the existing performance bond that EDCO Disposal Corporation presently has with the City of National City. It is in the amount of $25,000 per our contract with the City. If there are any questions, please feel free to contact me. I have enclosed a business card for your reference. Thank you very much. Sincerely, EDCO DISPOSAL CORPORATION 14.,(0 Michael P. Fellows Director of Human Resources Printed on Recycled Paper A WASTE COLLECTION AND RECYCLING COMPANY CNA SURETY COMPANIES 1800 East Imperial Highway Brea, CA 92821 CONTINUATION CERTIFICATE THE AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA (hereinafter called the Surety) hereby continues in force its Bond No. 142262112 in the sum of Twenty-five Thousand and No/100ths ($25,000.00) dollars, on behalf of EDCO DISPOSAL CORPORATION in favor of THE CITY OF NATIONAL CITY for the (extended) term beginning on the 18TH day of April, 1997, and ending on the 18th day of April, 1998, subject to all the covenants and conditions of said Bond. This Continuation is executed upon the express condition that the Company's liability shall not be cumulative and shall be limited at all times by the amount of the penalty stated in the bond. In WITNESS WHEREOF, the Company has caused this instrument to be signed by its duly authorized Attorney -in -Fact and its corporate seal to be hereto affixed this 14th day of April, 1997. EDCO DISPOSAL CORPORATION Principal By: AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA anice M. Hannah, Attorney -in -fact CNA For All the CommitmentsYou Make° American Casualty Company of Reading, Pennsylvania CNA For All the Commitments You Make° Office/Chicago, Illinois POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY -IN -FACT Know All Men by these Presents, That AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA, a corporation duly organized and existing under the laws of the Commonwealth of Pennsylvania, and having its principal office in the City of Chicago, and State of Illinois, does hereby make, constitute and appoint Janice M. Hannah, Individually of Orange County, California its true and lawful Attomey-in-fact with full power and authority hereby conferred to sign, seal and execute in its behalf bonds, undertakings and other obligatory instruments of similar nature - In Unlimited Amounts - and to bind AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA thereby as fully and to the same extent as if such instruments were signed by the duly authorized officers of AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA and all the acts of said Attorney, pursuant to the authority hereby given are hereby ratified and confirmed. This Power of Attorney is made and executed pursuant to and by authority of the following By -Law duly adopted by the Board of Directors of the Company. "Article VI —Execution of Obligations and Appointment of Attorney -In -Fact Section 2. Appointment of Attorney -in -fact. The Chairman of the Board of Directors, the President or any Executive, Senior or Group Vice President may, from time to time, appoint by written certificates attomeys-in-fact to act in behalf of the Company in the execution of policies of insurance, bonds, undertakings and other obligatory instruments of like nature. Such attomeys-in-fact, subject to the limitations set forth in their respective certificates of authority, shall have full power to bind the Company by their signature and execution of any such instruments and to attach the seal of the Company thereto. The Chairman of the Board of Directors, the President or any Executive, Senior or Group Vice President may at any time revoke all power and authority previously given to any attomey-in-fact" This Power of Attomey is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of the Company at a meeting duly called and held on the 17th day of February, 1993. "Resolved, that the signature of the President or any Executive, Senior or Group Vice President and the seal of the Company may be affixed by facsimile on any power of attorney granted pursuant to Section 2 of Article VI of the By -Laws, and the signature of the Secretary or an Assistant Secretary and the seal of the Company may be affixed by facsimile to any certificate of any such power and any power or certificate bearing such facsimile signature and seal shall be valid and binding on the Company. Any such power so executed and sealed and certified by certificate so executed and sealed shall with respect to any bond or undertaking to which it is attached, continue to be valid and binding on the Company." In Witness Whereof, AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA has caused these presents to be signed by its Group Vice President and its corporate seal to be hereto affixed on this 10th day of May , 1995 . AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA State of Illinois, County of Cook, ss: M.C. Vonnahme Group Vice President On this loth day of May 1995 , before me personally came M. C. Vonnahrn . , to me known, whz, being by me duly sworn, did depose and say: that he resides in ;e Village of Darien , State of Illinois; that he is a Group Vice President of AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA, the corporation described in and which executed the above instrument that he.,knows the seal of said Corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said corporation and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said corporation. My Commission Expires October 19, 1998 Linda C. Dempsey Notary Pubii:; CERTIFICATE ',John M. Littler , Assistant Secretary of AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA, do hereby certify that the Power of Attorney herein above set forth is still in force, and further certify that Section 2 of Article VI of the By -Laws of the Company and the Resolution of the Board of Directors, set forth in said Power of Attorney are still ill forp . In testimony whereof I have hereunto subscribecl.p,7 name and affixed the seal of the said Company this 14th day of AP"' E8-23142-D John M. Littler Assistant Secretary State of California County of Orange On 4/14/97before me, Grace B. Pelina, Notary Public Date NAME, TITLE OF OFFICER .,"JANE DOE, NOTARY PUBLIC" personally appeared Janice M. Hannah NAME(S) OF SIGNER(S) (x j personally known to me - OR - ( ) proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. GItrCg B, rI VA 8 WI SS my hand official seal. COMM # 1074598 D �' �p NOTARY PUBLIC-CALIFORNIA m 1 CCW = al F �� ORANGE COUNT! a7 +IGNA�L OF NOTARY Tres Oct. 9,1999 : Ys NyCommssionExD OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ( ) INDIVIDUAL ( ) CORPORATE OFFICER TITLE(S) ( ) PARTNER(S) ( ) LIMITED ( ) GENERAL ( ) ATTORNEY -IN -FACT ( ) TRUSTEE(S) ( ) GUARDIAN/CONSERVATOR ( ) OTHER SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES 4-14-97 DATE OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE ITEM #8 1/28/97 REPORT FROM EDCO DISPOSAL CORPORATION ON SOLID WASTE DISPOSAL (NO BACKUP MATERIAL) Book 79/Page *** 01/28/97 CONDITIONAL USE PERMITS 1996 (continued) NOTE: Councilman Beauchamp restated for the record that he he would be abstaining on this item as he did on Item No. 1, because he has done work for the applicant. ACTION: Motion by Zarate, seconded by Morrison, that the Notice of Decision be accepted and filed. Carried by the following vote, to -wit: Ayes: Morrison, Inzunza, Zarate, Waters. Nays: None. Abstaining: Beauchamp. CITY MANAGER - No report. CITY ATTORNEY City Attorney Eiser advised he would requesting a closed session at the end of the meeting for a legal matter. OTHER STAFF - No report. MAYOR CONTRACT (C90-26) 8. SUBJECT: Report from EDCO Disposal Corporation on Solid Waste Disposal. TESTIMONY: Mr. Steve South, Vice President and COO of EDCO Disposal Corporation updated the Council on trash issues as they relate to EDCO Disposal and the Citizens of National City. He reported on the progress and efforts of EDCO to secure a transfer station facility and what that could mean to the City by providing more options and flexibility in dealing with trash issues. Mr. South responded to questions from the Council and emphasized, for the record, that EDCO's goal is to provide lower overall rates for National City residents. ACTION: No action taken. City ot National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla - City Clerk (619) 336-4226 Fax (619) 336-4376 June 17, 1997 Steve South, General Manager EDCO Disposal Corporation 6670 Federal Boulevard Lemon Grove, CA 91945 Dear Steve: Enclosed is a certified copy of Resolution No. 97-68 of the City Council of the City of National City, which was passed and adopted on June 10, 1997. The resolution approved a refuse service rate change for EDCO Disposal Corporation, and established a Refuse Enterprise Fund. cerely, e Daniels Secretary to the City Clerk Enclosure ® Recycled Paper City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE June 10, 1997 2 AGENDA ITEM NO. r- ITEM TITLE A RESOLUTION OF THE CITY COUNCIL APPROVING AN EDCO RECOMMENDATION FOR REDUCTION IN REFUSE RATES, AND CONCURRENTLY ESTABLISHING A REFUSE ENTERPRISE FUND PREPARED BY C.R. Williams, Jr. DEPARTMENT Public Works EXPLANATION. Based upon jointly projected hosts, EDCO is recommending a rate DECREASE in Single family refuse service from the present $14.36 per month to a new rate of $13.95 per month. Basic rates for apartments will show a corresponding decrease, and the slightly improved apartment recycling rate warrants recommending that the current $0.54/UNIT/MONTH recycling fee be reduced to $0.51/UNIT/MONTH. Other components of service will receive reductions comparable to the $13.95. The silver bag program was scheduled to increase this year but with the overall rate reduction it is recommended that the silver bag program not increase and that it stay at $1.85/bag. Staff is recommending the concurrent establishment of a REFUSE ENTERPRISE FUND to provide a source for refuse related expenditures and to provide for rate stabilization. FOR BACK UP ON THIS ITEM, SEE COMPANION "PUBLIC HEARING" ITM #1. Environmental Review Financial Statement Benefits from the refuse rate reduction will accrue to the citizens increase in Franchise fees to 7% will largely off -set the reduced The Enterprise fund will generate about $365,000. X N/A STAFF RECOMMENDATION a) Approve rate reduction proposed. b) Approve establishment of the REFUSE ENTERPRISE FUND BOARD/COMMISSION RECOMMENDATION N/A and businesses of National City. The charges upon which fees are based. Account No. N/A ATTACHMENTS ( Listed Below) Resolution No. 97-68 A-200 (Rev. 9/80)