Loading...
HomeMy WebLinkAboutEDCO Disposal Corporation - Rate Adjustment - Increase - 2003AMENDMENT TO AGREEMENT FOR COLLECTION OF RUBBISH AND TRASH IN THE CITY OF NATIONAL CITY This Amendment to Agreement is made and entered into this 20tn day of May, 2003, by and between the City of National City, hereinafter referred to as "CITY," and EDCO Disposal Corporation, hereinafter referred to as "CONTRACTOR". RECITALS A. On September 25, 1990, CITY and CONTRACTOR entered into an agreement entitled "Agreement for Collection of Rubbish and Trash in the City of National City by and between the City of National City and EDCO Disposal Corporation for Services Rendered." B. Said Agreement was amended on June 22, 1993 pursuant to Resolution No. 93-86, and on November 9, 1993 pursuant to Resolution No. 93-176, on June 21, 1994 pursuant to Resolution No. 94-88, on September 16, 1997 pursuant to Resolution No. 97-119, and on June 12, 2001, pursuant to Resolution No. 2001-88. C. CITY and CONTRACTOR now desire to amend the provisions of said Agreement pertaining to the rates charged by CONTRACTOR, due to an increase in the tipping fee, and to reflect an increase in the Consumer Price Index for San Diego. NOW, THEREFORE, the parties hereto mutually agree as follows: 1. That the National City Rate Schedule shall be as shown on Exhibit "A", attached hereto and incorporated herein by reference, beginning July 1, 2003. 2. Except as otherwise provided herein, all of the provisions of the Agreement for Collection of Rubbish and Trash in the City of National City by and between the City of National City and EDCO Disposal Corporation for Services Rendered, dated September 25, 1990, and as subsequently amended, shall remain in full force and effect. Amendment to Agreement— EDCO Collection of Rubbish and Trash May 20, 2003 Page 2 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands on the date first above stated. APPROVED AS TO FORM: George H. Eiser, III City Attorney CITY OF NATIONAL CITY Nick Inzunza, T! yor EDCO DISPOSAL CORPORATION (Two Signatures Required) Title: V/17 NATIONAL CITY RATE SCHEDULE Juby 1, 2003 Itt)E.9B1S11 AND GARBAGE MONTHLY RATE 1, Re$IDENTIAL Per month residential single family properties $15.33 For the second and for each additional residential unit In multiple dwellings which $12 09 do not exceed four units 2. TRAILER PARKS AND MOTELS One Brno per week, per unit, per month 310.60 3. APARTMENT HOUSES One time per week, per unit, per month $10.777 4. seNIOR CITIZEN RESIDENTIAL $12.26 Par month S. StlidER BAG SERVICE. Per month $2.04 a. COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS Up to (2) 40 gallon containers Or (1) 00gallon automated cart Ono time per week, per month Up to (4) 40 gallon containers Or (2) 90 gallon automated cat One time per week, per month Up to (6) 40 gallon containers Or (3) 90 gallon automated Gad One time per week, per month $17.55 $32.66 541.9E EXHIBIT "A" PAGE 1 NATIONAL CITY RATE SCHEDULE 3uIy 9, 2003 RU10I39SH AND GARBAGE Up to (a) 40 gallon containers Or (4) 90 gallon automated cart $51 89 One time per week, per month Up to (10) 40 gallon containers Or (5) 90 gallon automated curt $67 77 One time per week, per month Additional or unusual accumulation $17 5$ 04 rubbish (per cubic yard) Bolt TYPE REFUSE SERVICE COLLECTION hIUMBER YARDS FREQUENCY OF BINS PER MONTH 1 1 13 2 1 26 3 1 39 4 1 62 5 1 65 6 1 78 7 1 91 1 2 26 2 52 3 2 78 4 2 104 6 2 130 g 2 156 7 2 102 1 3 39 2 3 78 3 3 117 4 3 166 5 3 195 6 3 234 7 3 273 MONTHLY •RATE MONTHLY RATE $02.78 $156.62 $220.46 $286.18 $351.09 $417.81 $463.33 $150.50 $284.30 $410.10 $634.02 $657.961 $781.67 $905.78 $224.21 $408.23 $592.23 $774.35 $958.49 $$1.136,61 $1,320.74 EXHIBIT "A" PAGE 2 NATIONAL CITY RATE SCHEDULE July 1, 2003 MONTHLY BOX TYPE REFUSE SERVICE RATE COLLECTION NUMBER YARDS FREQUENCY OF BINS PER MONTH 1 4 52 $289.93 2 4 104 $532.14 3 4 156 $774.35 4 4 208 $1,014.69 5 4 260 $1,255.02 6 4 312 $1,408.38 7 4 364 $1,735.69 1 5 66 $355.65 2 5 130 $656.07 3 5 195 $956.49 4 5 260 $1,247.51 5 5 325 51,538.54 6 b 390 $1.629.57 7 5 455 $2,120.61 1 6 78 $421.36 2 6 166 $779.99 3 6 234 $1,138.61 4 6 312 $1,485,97 5 6 390 51,633.33 6 6 468 $2,180.68 7 8 546 $2,526.04 EXHIBIT "A" PAGE 3 City of National City, California COUNCIL AGENDA STATEMENT *Refer to Item #3 .dEETING DATE May 20, 2003 AGENDA ITEM NO. Cto- ITEM TITLE A RESOLUTION TO APPROVE A RATE INCREASE FOR EDCO DISPOSAL CORPORATION 9 PREPARED BY EXPLANATION Jeff Servatius 336-4580 See attached report. DEPARTMENT Public Works CEnvironmental Review X N/A Financial Statement The proposed rate increase will fall on all recipients of the trash sepproved rvice. By: A Franchise Fee of 9% will be paid to the City. Finance Director Account No. STAFF RECOMMENDATION Adopt the attached Resolution. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 2003-64 1. EDCO letter dated May 7, 2003 2. Caporicici & Larson letter dated April 22, 2003 A-200 (9/99) REFUSE RATE RECOMMENDATION FOR FY-04 Basis: The establishment of the rates for trash service is based upon estimated quantities of various components, landfill and yardwaste quantities, recyclables sold and consumer price index (CPI) as related to the cost/price of such components. For the Rate Review, the actual performance for 9 months (July -March) is escalated to 12 months, and the actual total costs/price of budget items is determined, and is compared to budgeted amounts. Overcollection/undercollection by EDCO occurs unless our estimates are uncannily exact. Overcol lection/undercollection: For the fiscal year 2003, we used the anticipated rate of $33.35 per ton in the rate calculations. This rate was available to us because of a contract with the Regional Solid Waste Authority (RSWA). During fiscal year 2003, the curbside recycling programs, yardwaste and single stream netted $20,000+ over our projections. We hauled 770 tons more trash than estimated, resulting in a undercollection of $39,000+. This gave us a total of $19,000+ undercollected that is owed to EDCO. Fiscal Year 2004 Rate Factors: We anticipate the Tip Fee Rate for fiscal year 2004 will increase to $34.55 per ton. We also calculate the trash tonnage hauled to remain at the fiscal year 2003 level and we project a $0.60 per ton increase for yardwaste recycling. EDCO is owed the $19,000+ from the undercollection, in addition by contract EDCO is entitled to last year's CPI increase of 3.6%, which they deferred from 7/1/02 to 7/1/03 (to ease the rates). EDCO is also entitled to this year's CPI of 4%. Again to ease the rates for the customers, EDCO is offering to defer last year's 3.6% CPI increase until 7/1/04 but will collect this year's 4%. The Refuse Enterprise Fund was established in fiscal year 1998 to fund AB939 requirements such as hazardous waste disposal, purchasing trash containers for the right-of-way and its primary purpose to help absorb undercollection, that is to stabilize the rate. We will begin fiscal year 2004 with approximately $350,000 in this Fund/Reserve. With our current reserve, the contractor's contribution to the Enterprise Fund which can go up to $150,000 can remain at $50,000 without compromising our ability to pay for AB939 requirements. With the reduced contribution we anticipate an ending Fund balance of $300,000+ for fiscal year 2004. Recommendations: • The Refuse Enterprise Fund for fiscal year 2004 remain at $50,000 • The contractor receive this year's 4% CPI increase and the City accept the EDCO's offer to again defer last year's 3.6% CPI increase • The City Franchise Fee remain at 9% • Increase the single family residential from $14.83 per month to $15.33 per month. Senior residential from $11.86 to $12.26 per month. Commercial/Industrial for one time a week pick-up of a 3 cubic yard bin to increase from $89.67 per month to $92.78 per month, with added collections per week being increased at the same percentage rate. Multi -Family assessed per unit recycling fee be increased from $0.81 to $ 0.84 per month, and the Silver Bags be raised from $1.97 to $2.04 per bag. Subscript It should be noted that if approved, the single family rate history will be as follows; FY-97 $14.36 FY-98 $13.95 FY-99 $13.95 FY-00 $13.95 FY-01 $13.95 FY-02 $14.83 FY-03 $14.83 Proposed for FY-04 $15.33 Future: It should be noted that preliminary review of pertinent factors indicate a fiscal year 2005 rate increase for single family in the range of $0.70 to $1.00 per month, with corresponding increase in other EDCO services. RESOLUTION NO. 2003 — 64 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND EDCO DISPOSAL CORPORATION FOR COLLECTION OF RUBBISH AND TRASH, AND APPROVING A TRASH SERVICE RATE INCREASE WHEREAS, EDCO Disposal Corporation ("EDCO") is the trash hauler for the City of National City, pursuant to an agreement (the "Agreement") dated September 25, 1990, and subsequently amended on June 22 and November 9, 1993, June 21, 1994, September 16, 1997, and June 12, 2001; and WHEREAS, the Regional Solid Waste Association is expected to raise its rate for waste disposal effective July 1, 2003, and EDCO has requested a trash rate increase in accordance with the Agreement, which provides that this type increase be treated as a pass -through cost to trash subscribers; and WHEREAS, the Agreement provides for an annual cost of living adjustment in trash rates based upon the Consumer Price Index ("CPL for San Diego; and WHEREAS, EDCO has offered to defer last year's CPI increase of 3.6%, and to accept this year's CPI increase of 4%, which is reflected in the proposed rate increase; and WHEREAS, a public hearing as required by law was held on May 20, 2003, to consider the proposed trash service rate increase; and WHEREAS, the new trash service rates will be comparable to those of surrounding cities; and WHEREAS, the last trash service rate increase for EDCO was in June, 2001. 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, effective July 1, 2003. Continued on Page Two Resolution No. 2003 — 64 May 20, 2003 Page 2 of 2 BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute an Amendment to the Agreement with EDCO Disposal Corporation, dated May 20, 2003. Said Amendment to Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 20tI day of May, 2003. Nick Inzunza, ayor ATTEST: Mic ael Dalla /City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney KAbTMAI_ CITY RATE .idly MONTHLY RATE RUE131514 AND GARBAGE 1. f8ts$IOENTtAL 'S15.33 Per month residential single family properties For the second and for each additional$12.08 residential unit In multiple dwelling which do not exceed four units 2. TRAILER PARKS AND MOTELS $10.60 One time per weak, per unit, per month 1. APARTNN NT HOUSES y10.17 One time per week, per unit, per month 2. SENIOR CITIZEN RESIDENTIAL $12.26 Per month r, SILVER SAG SERVICE §2.04 Per month G. cottliNIERC1AL AND INDL➢STRIAL ESTALISHMENTS Up to (2) 40 gallon containers Or (1) 90 gallon automated cart $17.55 Ono time per week, per month Up to (4) 40 gallon containers Or (2) 90 gallon automated cart $32.86 One time per week, per month Up to (6) 40 gallon containers Or (3) 9L gallon automated cart 341,89 One time per week, per month EXHIBIT "A" PAGE 1 NAT6OINAL. CITY RATE SCHEDULE July 1, 2003 RUI8139SH AND GARBAGE Up to (8) 40 gallon containers Or (4) 90 gallon automated cart C)ne time per week, per month Up to (10) 40 gallon containers Or (5) 00 gallon automated cad One time per week, pet month Additional or unusual accumulation o1 rubbish (per cubic yard) SOX TYPE REFUSE SERVICE COLLECTION 'R UP BER YARDS FltEQUEI4CY OF SINS PER MONTH 1 1 13 2 1 26 3 1 39 4 1 62 5 1 85 6 1 78 7 1 91 1 2 26 2 2 52 3 2 78 4 2 104 5 2 130 6 2 155 7 2 102 1 3 39 2 3 78 3 3 117 4 3 166 5 3 195 6 3 234 7 3 273 NIONTHLV RATE $51.89 $67.77 $17.55 MONTHLY RATE $02.78 $156,62 5220.46 $286.18 $351.89 $417.81 $463.33 $158.50 $284.30 $410.10 $534.02 $657.94 $781.87 $905.78 $224.21 $408.23 5592.23 $774.35 5958.49 $1.136,61 51.320.74 EXHIBIT "A" PAGE 2 NATIONAL CITY RATE SCHEDULE July 4, 2003 BOX TYPE REFUSE SERVICE COLLECTION NUMBER YARDS FREQUENGV OP BINS PER MONTH 1 4 52 2 4 104 3 4 156 4 4 208 5 4 250 6 4 312 7 4 394 1 5 66 2 5 130 3 5 195 4 5 260 5 5 325 6 5 390 7 5 455 1 6 78 2 6 166 3 6 234 4 6 312 5 6 390 6 6 460 7 8 546 MONTHLY RACE 3289.93 $532.14 $774.35 $1,014.69 $1,256.02 $1,496.38 $1,735.69 5355.65 5656.07 $958.49 $1,247.61 $1,538.54 Si.029.57 $2,120.61 $421.36 5779.09 $1,130.61 $1,485,97 $1,833,33 32,180.68 $2.528.04 EXHIBIT "A" PAGE 3 Passed and adopted by the Council of the City of National City, California, on May 20, 2003, by the following vote, to -wit: Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Ungab. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: NICK INZUNZA Mayor of the City of National City, California erk of the CityNational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2003-64 of the City of National City, California, passed and adopted by the Council of said City on May 20, 2003. City Clerk of the City of National City, California By: Deputy CAA MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT May 20, 2003 *Refer to Item #9 AGENDA ITEM NO. 3 (-ITEM TITLE A PUBLIC HEARING TO CONSIDER A RATE INCREASE REQUEST FOR EDCO DISPOSAL CORPORATION PREPARED BY EXPLANATION Jeff Servatius 336-4580 See attached report. DEPARTMENT Public Works Environmental Review X N/A Financial Statement The proposed rate increase will fall on all recipients of the trash service. ed By: p p {� Finance Director A Franchise Fee of 9% will be paid to the City. Account No. STAFF RECOMMENDATION Hold the hearing. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 1. EDCO letter dated May 7, 2003 2. Caporicci & Larson letter dated April 22, 2003 A-200 (9,99) REFUSE RATE RECOMMENDATION FOR FY-04 Basis: The establishment of the rates for trash service is based upon estimated quantities of various components, landfill and yardwaste quantities, recyclables sold and consumer price index (CPI) as related to the cost/price of such components. For the Rate Review, the actual performance for 9 months (July -March) is escalated to 12 months, and the actual total costs/price of budget items is determined, and is compared to budgeted amounts. Overcollection/undercollection by EDCO occurs unless our estimates are uncannily exact. Ove rco l lection/undercollection: For the fiscal year 2003, we used the anticipated rate of $33.35 per ton in the rate calculations. This rate was available to us because of a contract with the Regional Solid Waste Authority (RSWA). During fiscal year 2003, the curbside recycling programs, yardwaste and single stream netted $20,000+ over our projections. We hauled 770 tons more trash than estimated, resulting in a undercollection of $39,000+. This gave us a total of $19,000+ undercollected that is owed to EDCO. Fiscal Year 2004 Rate Factors: We anticipate the Tip Fee Rate for fiscal year 2004 will increase to $34.55 per ton. We also calculate the trash tonnage hauled to remain at the fiscal year 2003 level and we project a $0.60 per ton increase for yardwaste recycling. EDCO is owed the $19,000+ from the undercollection, in addition by contract EDCO is entitled to last year's CPI increase of 3.6%, which they deferred from 7/1/02 to 7/1/03 (to ease the rates). EDCO is also entitled to this year's CPI of 4%. Again to ease the rates for the customers, EDCO is offering to defer last year's 3.6% CPI increase until 7/1/04 but will collect this year's 4%. The Refuse Enterprise Fund was established in fiscal year 1998 to fund AB939 requirements such as hazardous waste disposal, purchasing trash containers for the right-of-way and its primary purpose to help absorb undercollection, that is to stabilize the rate. We will begin fiscal year 2004 with approximately $350,000 in this Fund/Reserve. With our current reserve, the contractor's contribution to the Enterprise Fund which can go up to $150,000 can remain at $50,000 without compromising our ability to pay for AB939 requirements. With the reduced contribution we anticipate an ending Fund balance of $300,000+ for fiscal year 2004. Recommendations: • The Refuse Enterprise Fund for fiscal year 2004 remain at $50,000 • The contractor receive this year's 4% CPI increase and the City accept the EDCO's offer to again defer last year's 3.6% CPI increase • The City Franchise Fee remain at 9% • Increase the single family residential from $14.83 per month to $15.33 per month. Senior residential from $11.86 to $12.26 per month. Commercial/Industrial for one time a week pick-up of a 3 cubic yard bin to increase from $89.67 per month to $92.78 per month, with added collections per week being increased at the same percentage rate. Multi -Family assessed per unit recycling fee be increased from $0.81 to $ 0.84 per month, and the Silver Bags be raised from $1.97 to $2.04 per bag. Subscript It should be noted that if approved, the single family rate history will be as follows; FY-97 $14.36 FY-98 $13.95 FY-99 $13.95 FY-00 $13.95 FY-01 $13.95 FY-02 $14.83 FY-03 $14.83 Proposed for FY-04 $15.33 Future: It should be noted that preliminary review of pertinent factors indicate a fiscal year 2005 rate increase for single family in the range of $0.70 to $1.00 per month, with corresponding increase in other EDCO services. 6670 Federal Boulevard, Lemon Grove, California 91945 May 7, 2003 City of National City 1243 National Avenue National City, California 92050 (619) 287-7555 Fax: (619) 287-5242 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. As a member of the Regional Solid Waste Association (RSWA), National City has benefited from two years without an increase in the tipping fee. RSWA staff has approved a 3.6% increase in the tipping fee to $34.55 effective July 1, 2003. EDCO is again pleased to defer an increase in rates related to cost of living increases in operating expenses for this year. Based on city staff direction, the Trash Enterprise Fund contribution will be the maintained for the coming year. 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 an auditing firm of the City's choice. The report from Capporici & Larson supports our rate proposal. Please approve the attached rate schedule to be effective July 1, 2003. As always, thank you for your consideration. Respectfully, EDCO Disposal Corporation John Snyder General Manager www.edcodisposal.com A WASTE COLLECTION AND RECYCLING COMPANY Printed an Recycled Paper NATIONAL CITY RATE SCFIEDULE July 1, 2003 RUBBISH AND GARBAGE CURRENT PROPOSED MONTHLY MONTHLY RATE RATE 1. RESIDENTIAL Per month residential single family properties $14.83 For the second and for each additional residential unit in multiple dwellings which $11.69 do not exceed four units 2. TRAILER PARKS AND MOTELS One time per week. per unit, per month $10.26 3. APARTMENT HOUSES One time per week, per unit, per month $10.42 4. SENIOR CITIZEN RESIDENTIAL Per month 55. SILVER BAG SERVICE Per month 6. COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS Up to (2) 40 gallon containers Or (1) 130gallon automated cart $16. One time per week, per month Up to (4) 40 gallon containers Or (2) 90 gallon automated cart One time per week, per month Up to (6) 40 gallon containers Or (3) 90 ganon automated cart One time per week, per month $91 86 $1.67 $31.57 $15.33 $12.09 S10.60 $10.77 $12.26 $2.04 $17.55 $32.66 $40.57 $41,96 NATIONAL CITY RATE SCHEDULE July 1, 2003 RUBBISH AND GARBAGE CURRENT PROPOSED MONTHLY MONTHLY RATE RATE Up to (8) 40 gallon containers Or (4) 90 gallon automated cart $50 15 $51 89 One time per week per month Up to (10) 40 gallon containers Or (5) 90 gallon automated cart $65 $67.77 One time per week, per month Additional or unusual accumulation $16 96 $17.55 of rubbish (per cubic yard) CURRENT PROPOSED MONTHLY MONTHLY BOA TYPE REFUSE SERVICE RATE RATE COLLECTION NUNMBER YARDS FREQUENCY OF BINS PER MONTH 1 1 13 $89.67 $92.78 2 1 26 $151.37 5158.62. 3 1 39 $213.07 $220.46 4 1 52 $276.58 $286.18 5 1 65 $340.10 $351.89 6 1 78 5403.61 $417.61 7 1 Si $467.12 $483.33 1 2 26 $153.18 $158.50 2 2 52 $274.77 $284.30 3 2 78 $396.36 $410.10 4 2 104 $515.12 $534.02 5 2 130 $835 89 $657.94 6 2 155 5765.66 $781.67 7 2 162 $875.42 $905_78 1 3 39 5216.70 $224.21 2 3 78 S394.54 5408.23 3 3 117 $572.35 5592.23 4 3 156 $748.40 5774.35 5 3 195 5924.43 5556.49 6 3 234 $1,100.45 9 igR_(ii 7 3 273 $1,276 47 $1.320.74 NATIONAL CITY RATE SCHEDULE July 1, 2003 CURRENT PROPOSED MONTHLY MONTHLY SOX TYPE REFUSE SERVICE RATE RATE COLLECTION NUMBER YARDS FREQUENCY OF BINS PER MONTH 1 4 52 $2B0.21 $289.93 2 4 104 $514.30 $53Z.14 3 4 156 $748.40 $774.35 4 4 208 $980.67 $1,014.69 5 4 260 $1,212.95 $1,255.02 6 4 312 $1,445.23 $1,495,36 7 4 364 61.677.51 $1,735.69 1 5 65 $343.72 $355.65 2 5 130 $634.08 $656.07 3 5 195 $924.43 $956_49 4 5 260 $1,205.70 $1,247.51 5 5 325 $1,486.97 $1.538.54 6 5 390 $1.768.24 $1.829.57 7 5 455 $2.049.52 $2,120 61 6 78 $407.24 $421.36 2 6 156 $753.85 $779.99 3 6 234 $1,100.45 61,138.81 4 6 312 $1,436.16 $1,485.97 5 6 390 $1 771.88 $1,833.33 6 6 468 $2,107.68 $2,180.68 7 6 548 $2,443.30 $2.528.04 City of National City National City, California Report on Agreed -Upon Procedures Applied to EDCO Disposal Corporation For The Fiscal Year 2003 - 2004 C&L Caporicci & Larson Certified Public Accountants EDCO DISPOSAL CORPORATION TABLE OF CONTENTS Page Independent Auditors' Report on Applying Agreed -Upon Procedures 1 Exhibit A — Agreed -Upon Procedures 2 i CAL Caporicci & Larson Certified Public Accountants (Formerly Calderon, Jaham & Osborn of San Diego) INDEPENDENT AUDITORS' REPORT ON APPLYING AGREED -UPON PROCEDURES To the City Council of the City of National City National City, California We have performed the agreed -upon procedures enumerated in Exhibit A which were agreed to by the City of National City and EDCO Disposal Corporation ("EDCO") (collectively, "the Specified Parties"), solely to assist you and EDCO with respect to evaluating components of the fiscal year 2003 — 2004 Refuse Rate Analysis for the City of National City. We have applied the procedures documented in Exhibit A to this report in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the users of this report. Consequently, we make no representation regarding the sufficiency of the procedures described in Exhibit A, either for the purpose for which this report has been requested or for any other purpose. We were not engaged to, and did not perform an audit, the objective of which would be to express an opinion on the information referred to above. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the use of the City of National City 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. April 22, 2003 Ph: (619) 234-5137 Toll Free Ph: (877) 862-2200 Fax: (619) 234-5162 Toll Free Fax: (866) 436-0927 Oakland Orange County Sacramento San Diego 180 Grand Ave., Suite 1365 3184-D Airway Avenue 777 Campus Commons Rd., Suite 200 600'B" Street, Suite 1900 Oakland, California 94612 Costa Mesa, California 92626 Sacramento, California 95825 San Diego, California 92101 EDCO DISPOSAL CORPORATION AGREED -UPON PROCEDURES EXHIBIT A The procedures we performed, which relate primarily to the City of National City's fiscal year 2003-2004 Refuse Rate Analysis, are summarized as follows: 1. Requested EDCO's internally prepared financial statements for the eight months ended January 31, 2003, and the audited financial statements for the year ended May 31, 2002. 2. Agreed the fiscal 2003 refuse rate from EDCO's prior year's calculation to the refuse rate used in EDCO's fiscal 2004 refuse rate calculation proposal provided on April 1, 2003. 3. Obtained information from the U.S. Department of Labor — Bureau of Labor Statistics and agree such information to the amount used in the Consumer Price Index ("CPI") adjustment in the fiscal 2004 refuse rate calculi; `ion provided in EDCO's proposal provided on April 1, 2003. 4. Proved the mathematical accuracy of franchise fees due to National City for the period from April 1, 2002 to March 31, 2003, to ascertain that they were calculated based on 9% of cash collected as reported in EDCO's underlying financial records. 5. Reviewed the franchise fee remittances made to National City by EDCO for the period from April 1, 2002 to March 31, 2003 to ascertain that they were made on a monthly basis and agreed remittances reported to remittances received by the City of National City. 6. Agreed the San Diego County estimated landfill tip fee projected in the FY03-04 rate review process to the Agreement for Transfer and Disposal Services between Regional Solid Waste Association and EDCO Disposal Corporation. 7. Agreed the actual tons of refuse collected to two haphazardly selected days in the period from July 1, 2002 to March 31, 2003 to EDCO's supporting landfill tickets. 8. Proved the mathematical accuracy of the difference between the actual annualized revenues from EDCO's sale of recyclables and EDCO's projected revenues from the sale of recyclables used in the fiscal 2002 refuse rate. 2 EDCO DISPOSAL CORPORATION AGREED -UPON PROCEDURES EXHIBIT A, Continued 9. Agreed total tons of recyclable materials collected to underlying accounting records for two randomly selected months. From the underlying records provided by EDCO, randomly selected five daily recyclable totals and agreed those totals to supporting work tickets. Compared actual recycling rates to three randomly selected recycling receipts. 10. Proved the mathematical accuracy of EDCO's proposed effect of franchise fees on the fiscal 2004 refuse rate in the proposal provided on April 1, 2003. 11. Proved the mathematical accuracy of the percentage effect of the yard waste disposal fee change on the fiscal 2004 refuse rate contained in EDCO's proposal provided on April 1, 2003. 12. Agreed the 2004 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. 3 PUBLIC HEARING A REQUEST FOR CHANGE IN TRASH SERVICE RATES FOR EDCO DISPOSAL CORPORATION (Engineering) DATE OF HEARING: DATE OF PUBLICATION: �Iy?oz3 Mgt Z DATE E-MAILED TO STAR NEWS: L 2- Confirmation received: WITH CC TO: City Manager: LV\ ,'Lk Planning: Other: \IUD (V\ t 'k19()15T1N,)C>M?4- 7--`A POSTED IN OFFICE:��� DATE MAILED TO LIST: \\9IN Affidavit of Mailing: V)U M k11v CERT. OF PUBLICATION RECD AND FILED (103-3-1): City of National City of the City Office Clerk 1243 National CityCMNational City, California 91950-4397 C Boulevard, Clerk Michael R. Della, 336-4229 (619) 336-4228 Fax: ( g19 ) NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Na200al City will hold a p after the hour of 6:00 p.m., Tuesday, May 20, ublic hearing 1243 National City Boulevard, in the City Council Chambers, Civic Center, National City, California, to consider: TES FOR A REQUEST FOR CHANGE IN TRASH SERVICE RA EDCO DISPOSAL CORPORATION. and Anyone interested in this matter may appear at the above time and place be heard. youmay be e the nature of the proposed action in cow, hearing I f you challenge or someone else raised at the public limited to raising ng o only those issues you notice, or in written correspondence delivered to the to, the public cheating' described in this n of National City at, or p or to the City Council of the City DATED: A ril 4 2003 4 Mic ael R. Dal ! , CMC City Clerk of the City of National City, California ,,—.,,aPa Paver To: From: Subject: City of National City Office of the City Clerk 1243 National City Blvd., National City, CA 91950-4397 Michael R. Dalla — City Clerk (619)336-4226 (619) 336-4229 Lavonne Watts City Manager's Office Marti Alvarez City Clerk's Office Agenda Item: Notice of Public Hearing — Edco (Rate Increase) Date: April 24, 2003 Please place the subject item on the Agenda for the City Council Regular Meeting of Tuesday, May 20, 2003, at 6:00 p.m. Please contact our office should you have any questions or need additional information. /mla Attachment cc: Engineering City of National City Office of the City Clerk 1243 National City Boulevard, National City, California 91950-4397 Michael R. Dalia, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 NOTICE OF PUBLIC HEARING 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, May 20, 2003, in the City Council Chambers, Civic Center, 1243 National City Boulevard, National City, California, to consider: A REQUEST FOR CHANGE IN TRASH SERVICE RATES 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'1'BD: April 24, 2003 Mic'mel R. Dal , CMC City Clerk of the City of National City, California ® Recycled Paper $ t r City, Caad ar ni CQU NC? . Er DA STATEMENT LEETING DATE __April 15, 2-003-.. (ITEM TITLE 8 A RESOLUTION SCHEDULING A PUBLIC HEARING TO CONSIDER A RATE CHANGE REQUEST FOR EDCO DISPOSAL CORPORATION PREPARED BY Jeff Servatius DEPART Public Works/Engineering 336-4560 EXPLANATION EDCO is proposing a rate increase for single family residences from $14.83 per month to $15.33 per month. Senior residential rates are proposed to go from $11.86 to $12.26 per month. Commercial/Industrial rates for a one time a week pick-up of a 3 cubic yard bin is proposed to increase from $89.67 per month to $92.76 per month, with additional collections per week being increased at the same percentage rate. Multi -family assessed per unit recycling fee are proposed being increased from $0.81 to $0.84 per unit per month, and the price of Silver Bags proposed to be raised $0.08 to $2.04 per bag. The purpose of this Resolution is to schedule a Public Hearing for the May 20, 2003 City Council meeting at which time the requested change in the trash service rate would be heard. Environmental Review % FIFA Financial Statement ved Eli: The burden of rate increase will faI n all recipients of the trash se ce. France Otrector A Franchise Fee of 9% will be pa + o the City. STAFF RECONNAENDATIo Adopt the Resolution setti BOARD F COMMISSION RECOMMENDATION N/A ATTACH, in lai r S f Lieted Below i Account No, n N'o, . 2003-47 RESOLUTION NO. 2003 - 47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY SCHEDULING A PUBLIC HEARING TO CONSIDER A TRASH SERVICE RATE CHANGE REQUEST FROM EDCO DISPOSAL CORPORATION WHEREAS, it has been proposed that there be approved a change in trash service rates to be charged by EDCO Disposal Corporation; and WHEREAS, Section 66018 and 6062(a) of the California Government Code require a public hearing and 10 days' notice prior to the enactment of specified new or increased fees or charges. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the time for hearing any and all persons interested in the proposed change in trash service rates is hereby set for 6:00 p.m. on May 20, 2003, in the City Council Chambers in the Civic Center, 1243 National City Boulevard, National City, California. BE IT FURTHER RESOLVED that the City Clerk of the City of National City, California, is hereby directed to provide notice of the time and place of said hearing in accordance with the law. PASSED AND ADOPTED this 15th day of April, 2003, Nick tnzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, Ill City Attorney City of National City Office of the City Clerk 1243 National City Boulevard, National City, California 91950-4397 Michael R. Della, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 May 29, 2003 Mr. Steve South 901 National City Blvd National City CA 91950 Dear Mr.. iuth, SAW - On May 20, 2003, Resolution No. 2003-64 was passed and adopted by the City Council of the City of National City, authorizing the Mayor to execute an amendment to the agreement between the City and Edco Disposal Corporation for collection of rubbish and trash, and approving a trash service rate increase. We are forwarding a certified copy of the above Resolution and a fully executed origin] amendment to the agreement. Michael R. Dalla, CMC City Clerk MRD/rnla Enclosure cc: PW File No. C90-26 I 1SPOSAL CORPORAi10N 6670 Federal Boulevard, Lemon Grove, California 91945 (619) 287-7555 Fax: (619) 287-5242 October 2, 2003 City of National City 1243 National City Blvd National City, CA 91950 Attn: Stephen Kirkpatrick Dear Mr. Kirkpatrick Please find enclosed a rider to EDCO Disposal's performance bond that corrects the effective date to represent an expiration date of April 18, 2004. You will be receiving a annual confirmation that the bond is continued directly from the surety. a If you have additional questions, please feel free to contact me. Sincerely, EDCQ Disposal Corpor.. ion Michael P. Fello r s Director of Human Resources C - c•-.L www.edcodisposal.com A WASTE COLLECTION AND RECYCLING COMPANY Printed on Recycled Paper International Fidelity Insurance Company 1575 Treat Blvd., Suite 208, Walnut Creek, CA 94596 Phone 800-277-3537 Fax 925-256-8760 RIDER To be attached to and form part of Bond No. 0331116 Principal Edco Disposal Corporation Amount $25,000.00 in favor of The City of National City It is agreed that: That the term has been amended from April 18", 2003 and ending April 18', 2003 to April 18', 2003 and ending April 18", 2004. This rider is effective April 18', 2003 Signed, Sealed and Dated this 19th day of September 20 03 Intemation 1 Fidelity Insurance Company AAA YY) Valerie M. Pearce, Attorney -in -Fact By: CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT p2C�S.1C�F.�?T'�.?t 1C�Q ECG %99 ca Ce State of California County of San Diego SS. OnSeptember 19, 2003 before me, Penny E. Kelley, Notary Public Date Name and Title of Officer (e.g., "Jane Doe, Notary Public') personally appeared Valerie M. Pearce v 0, PENNYfit 2EE5E R NOTARY PUBLIC-CALIFORNIA N SAN DIEGO COUNTY C) My Commission Expires '' DECEMBER 26, 2004 Place Notary Seal Above "'-nature of Notary Public Name(s) of Signer(s) Upersonally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(; whose nameRc ism$ subscribed to the within instrument and acknowledged to me that Wshafigifexecuted the same in Wher/Wil authorized capacity(, and that by /herd signaturejgon the instrument the person(), or the entity upon behalf of which the person acted, executed the instrument. ITN:.S my hand and off'ci. seal. nJ 9 A 9. OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of thumb here aJ 5 5 01999 National Notary Association • 9350 De Solo Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationalnotaryorg Prod. No. 5907 e Reorder. Call Toll -Free 1-000-878-6827 del (973) 624-7200 POWER OF ATTORNEY INTERNATIONAL FIDELITY INSURANCE COMPANY HOME OFFICE: ONE NEWARK CENTER, 20TH FLOOR NEWARK, NEW JERSEY 07102-5207 FOR BID BOND/RIDER/CONSENTS/AFFIDAVITS KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing laws of the State of New Jersey, and having its principal office in the City of Newark, New Jersey, does hereby constitute and appoint CHRISTINE A. PATERSON, LAWRENCE F. MCMAHON, JACK T. WARNOCK, LETICIA SAN MARTIN, VALERIE M. PEARCE, HART B. STEWART San Diego, CA. its true and lawful attomey(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory m the nature thereof, which are or may be allowed, required or permitted by law, stature, rule, regulation, contract or otherwise including any and all consents for the release of retained percentages and/or final estimates on engineering and construction contracts required by the Department of Transportation, State of Florida, and the execution of such instruments) in pursuance of these presents, shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at its principal office. This Power of Attorney is executed, and may be revoked, pursuant to and by authority of Article 3-Section 3, of the By -Laws adopted by the Board of INSURANCE of INTERNATIONAL FIDELITY COMPANY at a meeting called and held on the 7th day of February, 1974. The President or any Vice President, Executive Vice President, Secretary or Assistant Secretary, shall have power and authority (1) To appoint Attorneys -in -fact, and to authorize them to execute on behalf of the Company, and attach the Seal of the Company thereto, bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof and, (2) To remove, at any time, any such attomey-in-fact and revoke the authority given. Further, this Power of Attorney is signed and sealed by facsimile pursuant to resolution of the Board of Directors of said Company adopted at a meeting duly called and held on the 29th day of April, 1982 of which the following is a true excerpt: Now therefore the signatures of such officers and the seal of the Companymay be affixed to any, such power of attorney or any certificate relating thereto by facsimile, and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and bindmg upon the Company and any such power so executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond or undertaking to which it is attached. IN TESTIMONY WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY has caused this instrument to be signed and its corporate seal to be affixed by its authorized officer, this 31st day of August, A.D. 1998. INTERNATIONAL FIDELITY INSURANCE CO STATE OF NEW JERSEY County of Essex Secreta On this 31st day of August 1998, before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said the he is the therein described and authorized officer of the INTERNATIONAL FIDELITY INSURANCE COMPANY; that the seal affixed to said instrument is the Corporate Seal of said Company; that the said Corporate Seal and his signature were duly affixedby order of the Board of Directors of said Company. IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written. A NOTARY PUBLIC OF NEW JERSEY CERTIFICATION My Commission Expires Nov. 21, 2005 I, the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Section of the By -Laws of said Company as set forth in said Power of Attorney, with the ORIGINALS ON IN THE HOME OFFICE OF SAID COMPANY, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect IN TESTIMONY WHEREOF, I have hereunto set my hand this 19th day of September 2003 Assistant Secretary