HomeMy Public PortalAbout06) 7C Rate Adjustment Request by Athens ServicesAGENDA
ITEM ?.C.
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE : June 19, 2018
TO: The Honorable City Co un cil
FROM : Bryan Cook , City Manager
By : Michael D. Forbes , Community Development Director
SUBJECT: CONSIDERATION OF RATE ADJUSTMENT REQUEST BY ATHENS
SERVICES FOR SOLID WASTE COLLECTION
RECOMMENDATION:
The Ci ty Counci l is requested to approve the rate adjustment request by Athens
Services (Athens) for solid waste colle ction services to become effective July 1, 2018
(Attachment "A ").
BACKGROUND:
1. On February 18 , 2003 , the City Council approved an Amended and Restated
Agreement with Athens , the City 's franchise waste collector.
2 . On June 20 , 2017 , the City Council approved Athens ' rate adjustment request for
a 2 .98 % increas e for single family res idences and a 2 .87 % i nc rease for
commercial uses (three-yard bin) effective July 1, 2017 (Attachment "B"). Per the
terms of the Agreement , these increases were based on increases in the
Consumer Price Index (CP I) and Materials Recovery Fa ci lity (MRF) ti pp ing fees .
3 . On May 30 , 2018 , Athens submitted a letter request ing City approval of a rate
adjustment to be effect ive July 1, 2018 (Attachment "A ").
ANALYSIS:
Athens is requesting City Council approval of a 4.06% i ncrease fo r si ngle fam il y
residential and a 4 .03 % rate increase for commercial (three-yard bin) so li d waste
collection serv i ces . This request compl ies w ith the Agreement between the C ity and
Athens , wh ich states the fo ll owing in Section 8 .2 :
City Council
June 19 , 2018
Page 2 of 3
"The Contr actor may submit an application for rate review not more often
lly . The complete application shall be submitted within ten (1 0)
(i) the Contractor receives the annual notice of adjustment i n
ng fees from any disposal site presently be ing used pursuant
than annua
days after
landfill tippi
to this Agr eement and (ii ) the publication of the increase or decrease in
Price Index (CPI) for the previous 12-month peri od (May
pril) for all urban consumers in the Los Ange les-Anahe im-
area , non -hous ing , but in no event later than June 1 for the
ing July 1. The City Council w i ll take action on the request as
ssible and will complete the approval process by July 1. The
shall show how the rate increase meets the formula set out in
Consumer
through A
Rive rside
period start
soon as po
application
Section 8.4 "
Section 8.4 (Rate Formula) states :
"Any rate a djustment pursuant to this Ag reement w ill be ca lculated as set
bit "D" attached and incorporated as if fully set forth here in." out in Exhi
Pursuant to Sec
adjustment reque
tion 8 .2 of the Agreement , Athens submitted their annual rate
st on May 30 , 2018 . The submittal met the time requirements of
e rate formu la requirements of Section 8.4 . Section 8 .2 and th
The requested a djustments are based on changes to three fee components : 1)
nsportation ; 2) processing ; and 3) disposal. The sum of these three
own as the Net Rate and is the portion that goes to Athens . The other
collect ion and tra
components is kn
fee components
residential accoun
added to the Net
customer.
The operations co
adjusted every Jul
The disposal com
are the 5% City Franchise Fee (not included on sing le fam ily
ts) and the 2 % Solid Waste Management Fee . These two fees are
Rate to determine the Gross Rate , which is the total paid by the
mponents of the rates (collection and transportation ; process i ng ) are
y 1 based on the CPI change from Apri l to April , 3 .97 % for th i s year .
ponent is adjusted based on the percentage change to the Athens
MRF tipping fee ,
higher th is year t
The table below
4.47 % for th is year. The CPI and MRF tipp i ng fee increases are both
han last year, so the requested fee increases are accord ingly higher.
summarizes the proposed rate adjustments for the residential and
onents based on the Gross Rate . commercial comp
Fee Type
Single Family
Resident ia l
Commercia l
(3 Yard Bi n)
Current Rate Effective
Jul 1,2017
$34 .51
$205 .72
Proposed Rate Effective
Jul 1,2018
$35.91
$2 14 .01
Percent
Increase
4 .06%
4 .03 %
City Council
June 19 , 2018
Page 3 of 3
At staffs request, the City's consulta nt for solid waste services , R3 Consulti ng Group ,
Inc., reviewed the proposed rate adjustment and the justification provided by Athens.
R3 recommends th at the City Council approve the adjustment as requested .
CITY STRATEGIC GOALS :
Approving the requested rate increase furthers the C ity's Strategic Goa ls of Good
Governance and Public Health and Safety.
FISCAL IMPACT:
The requested rate adjustment will affect resident ial and commercial trash service rates
but will have no i mpact on the Fiscal Year (FY) 2017-18 City Budget.
ATIACHMENTS :
A. Rate increase request from Athens dated May 30 , 2018
B . Athens approved 2017 rates
ATTACHMENT A
Waste Collection·Recycling· Transfer • Disposai•Street Sweeping
May 30. 2018
Bryan Cook
Ci ty Manager
City of Temple City
9701 Las Tunas Dr.
T empl e City. CA 91 78 0
Re: Annual Rate Review
Mr. Cook.
14048 Va l ley Blvd.
P.O . Box 60009
City of Indus try, CA 91716 -0009
Fax (626 ) 330 -4686
(626) 336-3636
In accordance with our agreement with the City of Temple City, we have adjusted the rates for
waste services. as referenced in the attached Exhibit. to be effective July 1. 2018.
T he operations compone nt of the rates is based on the percentage change in the Consumer Price
Index from April 20 17 to April 20 18 of 3.97%. The r u bbish compone nt is based on the
percentage change in the Athens MRF from July 2017 to July 20 18 of 4.4 7%.
Please handle the administrative processing of this request to make the rates effective July I.
2018 and call me at (626) 855-7230 if you have any questions.
Christian Warner
Senior Director-Gove rnment Atlairs
Enclosure
Cc: Gar) Clifford. Ex ecuti ve Vice President. Athens Services
CITY OF TEMPLE CITY
RATE ADJUSTMENT
EFFECTIVE JULY 2018
New 2% Sohd
N~ Total New New 5% Waste Add ltJODal
Co ll ection & New ()per allons Disposal Ne t Fra.ochise Mgmt Gross Cbqe
Serv1ce rransport. Process Comp Comp Rate Fee Fee Rate Per Bin
Rcs1dcnt1al:
Smgle Fam1ly 16.43 9.88 26.30 9 40 35 71 0.20 35.91
Units ·
1st Un11 16.43 9.88 26.30 9 40 3!'.71 0.20 35 .91
Each Add'! Unit 17.85 0.20 18 .05
I YD IX 80.00 42 .94 122.94 11.49 134.42 7.07 2.83 144 .33 118.18
2X 129.Q7 6772 196.79 22 25 2 19.03 11.53 4.61 235 17 193 56
3X 178 .16 92.51 270 67 33 12 303 .80 15.99 6.40 326.18 268 .88
4X 227.24 111.26 344.50 43 92 388.42 20 44 8 18 417.04 344.29
5X 276.27 142.08 4 1834 54 11 473.11 24 .90 9.96 50798 41711
6X 340.82 175 .91 516 73 65 92 582.65 30.67 12.27 625.59 516.52
1.5 YO IX 90.60 47 16 IJ7.75 16 59 154.35 8.12 3.25 165 72 135 .81
2X 139.47 69.79 209.27 32 33 241.60 12 .72 5.09 259.40 212.8 1
3X 188.31 92.42 280.74 48 .06 328.80 17.31 6.92 353 .02 289 84
4X 236.78 11 5.08 JS 1.87 63 .80 415.66 21.88 8.75 446.29 367 .29
sx 285 .99 137.73 423.72 79.52 503.24 26.49 10 .59 540.33 441H
6X 350 27 169 44 5 19.71 95 53 615 24 32.38 12.95 660 57 539.74
2YD IX 102 78 52.32 155 .10 2\.70 176 .80 9.31 3.72 189 83 156 14
2X 157 .5 3 76.42 233.96 42.48 276.44 14.55 5 82 296.81 242 91
3X 212 .34 100.58 312 92 63 .29 376 .21 19 .80 7.92 403 93 329 55
4X 267.15 124.68 391.83 84.03 475.86 25.05 10.02 510.93 416.23
5X 32 1.97 148.8 1 470 .78 104.82 575 .60 30.29 12.12 618 01 502.79
6X 393 .77 182.94 576 .7 1 125.89 702 .60 36.98 14 79 754 37 61fl .36
3 YD IX 113 14 S·t39 167 53 31.79 199 32 10.49 4.20 2 14 0 1 175 43
2X 167.47 74 22 241.69 62 36 304.06 16.00 640 326 ~6 265.45
JX 221.81 94 07 315 .88 9290 408 .77 21.5 1 8 61 ~38 89 355 -II
4X 276.16 113 92 390.08 123 .47 513.55 27.03 10 81 55 1 39 445.33
sx 330.58 133 .70 464.28 154.04 618 .32 32.S4 13 02 663 88 535.30
6X 401.81 163 .59 565.40 18-t 97 750.37 39.49 15.80 805 bb 652 09
RollOIT 301.3 I 332.01 633.32 2 16.14 849.46 44 .7 1 17 88 912 05
~YD IX JJ O 77 60 82 191.59 41.93 233.52 12.29 4.92 250.73 196.08
2X 170.8 1 68.27 239.08 82.05 321.1 3 16.90 6.76 34479 268 10
JX 256.32 89 .46 345 .17 122.86 468 .64 24 .67 9.87 503 .17 392 20
4X 325 .44 JI D.63 436.07 163.58 599.6!\ 31.56 12.62 643 .84 SO l 44
5X 401 .35 145.44 546.79 204 .48 751.27 39.54 15.82 806 .63 627 30
6X 477.24 180.26 657.50 245 .38 902.88 47 52 19.0 1 969 40 746 95
cc I 32.97 13.93 46 90 9 61 56 .51 2 .97 I 19 60 67
2 48 .29 17 .82 661 1 18.87 84.98 4.47 I 79 91 2~
) 62.64 21.72 84 .36 28 09 112.46 5.92 2.J1 120 74
4 77.02 25 .63 102 65 37 35 140.00 7.37 2.9$ 150 32
5 91.39 29 53 120.92 46 .59 167.52 8.82 3SJ 179 86
6 105 .76 33.44 IJ9.21 55 .82 195 .03 10.26 4 II 20940
S trect S weepmg 15 ,3 49.37 15,349 .37 3,397 71 18.747 08 18.747 08
Bureau of La bor Sta t istics
CPI-AII Urban Consumers (Current Series)
Original Data Value
Series ld: CUURS49ASAO
Not Seasonally Adjusted
Series Title: All items in Los Angeles-Long Beach-Anaheim ,
Area : Los Angeles-Long Beach-Anaheim, CA
Item: All ite ms
Base Period: 1982-84=100
Years: 2008 to 2018
Year Jan Feb Mar Apr May
2008 220 .918 221.431 223 .606 224.625 226 .651
2009 220 .719 221.439 221.376 221 .693 222 .522
2010 224.610 224.620 225.483 225 .916 226.438
2011 228.652 229.729 232.241 233 .319 233 .367
2012 233.441 234.537 236 .941 236.866 237 .032
2013 238 .015 239.753 239 .995 239.043 239.346
2014 239.857 241 .059 242.491 242.437 243.362
2015 239 .724 241 .297 243 .738 243 .569 246.093
2016 247 .155 247 .113 247 .873 248.368 249 .554
2017 2 52.373 253.815 254.525 254 .971 255 .674
2018 261 .235 263.012 264.158 265 .095
265 .095 CPI -CY
254.971 CPI -PY
10.124 Ch ange It
254.971 CP I -PY
3.971% Change %
Source : Bureau of Labor Statistics
Jun Jul
229.033 229.886
223 .906 224.010
225.877 225.99 1
232 .328 231 .303
236 .025 235 .776
239 .223 238.920
243.528 243.727
245.459 247.066
249.789 249.784
255 .275 256.023
Aug Sep Oct Nov Dec Annual
228.484 227 .449 226.159 222 .229 219.620 225.008
224.507 225 .226 225 .264 224 .317 223 .643 223.219
226.373 226.048 226 .794 225.941 226 .639 225.894
231 .833 233.022 233.049 232.731 231 .567 231 .928
237 .222 238.104 240.111 237 .675 236 .042 236.648
239 .219 239.611 239.940 238.677 238 .742 239.207
243 .556 243 .623 243.341 241 .753 240.475 242.434
246.328 245.431 245.812 245.711 245.357 244 .632
249.700 250 .145 251 .098 250 .185 250.189 249.246
256.739 257 .890 258 .883 259 .135 259 .220 256 .210
Generated on: May 14, 2018 (07 :36:33 PM)
C O UNTY S AN I T AT I ON D I STR I CTS
O F L OS ANG E LES COUf'v,.Y
1955 'llur kmo,.. M.ll Rooc Wh 1tt 1e·. CA 9J60 1400
M:> 1nG Ada c~s P 0 Bo• 4 9 98 . N~1 H ·er CA 90607-499 8 GRACE R0611'<SON 1-'YDf
Telecho~e 15o2 699-7~ · FAX 562 699 5 4 27 ::.._ e/ t~grne~,. l-0 o· G'=" •r: o o 109 r
w""'w ::esc or;
May 25,2018
Dear Solid Waste Facility Customer:
Solid Waste Management Facilities Rates
Th is is to advise you of new municipal solid and inen waste (MSW) rates to be charged a t the
Puente Hills Materials Recovery Facility (NfRF), the Downey Area Recycling and Transfer (DART)
Facility, and the South Gate Transfer Station effective July !, 2018 . The Sanitatjon Districts boards were
briefed in April and the Board of Sanitation District 1\o. 2, the administrative district, ado pled a revised rare
ordinance o n May 23 , 20 18.
The MSW rate at the Puente Hills MRF will increase from $58.40 per ton to $6 1.40 per ro n . The
MSW rate at the DART Facility will increase from $62.4 9 per ton to $65.49 per ton . The \1SW rate at the
SOTS will increase from $63 .16 per ton to $66.16 per ton. Similar changes to the rates for hard-to-h andle,
bulky items, min imum load charges and pull-offs will a lso be implemented at the various sites.
The proposed ordinance does no t cover the Scho ll Canyon Landfill and the Calabasas Landfill
(CALF) for which the Districts act only as the operator. The :vfSW rate at Scholl Canyon Landfil l will
remain unchanged at $53 .83 per ton . The MSW rate at the CALF is s et by the Board of Supervisors of the
County of Los Angeles based on a recommendation by the Sanitation D istricts . The Districts have
recommended that the CALF MSW rate remain unchanged at S52.32 per ton .
A copy of the new rate schedule is e nc losed. If you have any questions regarding the rates, please
call Susan Bremser at (562) 908-4288, extension 2759.
CEB :SRB :gc
Enclosure
DOC 4568671
Very rroly yours.
Charles E . Boehmke
Department Head
Soli d Waste Management Department
Service
Residenti al :
Single Fam ily
Units :
1st Unit
Each Add'! Unit
I YD
1.5 YD
2 YD
3YD
Roll Off
4YD
cc
s trect sweeping
IX
2X
3X
4X
5X
6X
IX
2X
3X
4X
5X
6X
I X
2X
3X
4X
5X
6X
IX
2X
3X
4X
SX
6X
IX
2X
3X
4X
5X
6X
2
3
4
5
6
New
Collection&
Transport.
15 .80
15 .80
76 .94
124.13
171.36
218.56
265.7 1
327 .80
87.14
134 .14
181.12
227 .74
275.06
336.88
98 .85
151.51
204.23
256.94
309.67
378.73
108.82
161.07
213 .33
265 61
317 .95
386.46
289.79
125 .78
164 .28
246.52
313 .01
386,02
459 .01
31.71
46.44
60.25
74.08
87 .90
101.72
14 ,762 .97
New
Process.
9 .50
9 .50
4 1.30
65 .14
88 .97
112 .78
136 .65
169 .19
45.35
67 .13
88 .89
110.69
132 .47
162.97
50.32
73 .50
96.74
11 9.92
143.13
175 .95
52.31
7 1.39
90 .47
109 .57
128 .59
157 .34
3 19.33
58 .49
65 .66
86.04
106 .41
139 .88
173 .37
13.40
17.14
20 .89
24.65
28 .41
32.16
CITY OF TEMPLE CITY
RATE ADJU STMENT
EFFECTIVE JULY 201 7
New
T01al
Operations
Comp .
25 .30
25.30
118 .24
189.27
260.33
331.34
402 .36
496 .99
132 .49
201.27
270 .01
338 .42
407 .53
499.85
149.17
225 .02
300.96
376.86
452 .80
554 .67
161.13
232 .46
303 .81
375.18
446.54
543 .80
609 .12
184 .27
229.94
332.56
419.41
525 .90
632 .38
45 .11
63 .59
81.14
98 .73
116.30
133 .89
14,7 62 .97
New
Disposal
Comp.
9.01
9.01
11.03
21.34
31.77
42 .12
52 .53
63 .23
15 .93
31.00
46.06
61.15
76 .22
91.58
20.82
40 .73
60 .65
80.53
100.45
120.64
30.47
59 .76
88 .99
118.28
147 .55
177.18
207 .04
40 .19
78 .60
11 7.69
156.68
195 .86
235 .03
9.21
18 .07
26 .9 1
35 .78
44 .63
53.47
3,252.22
New
Net
Rate
34.3 I
343 1
17 .15
129.2 7
210.62
292 .10
373 .46
454 .89
560.22
148 .42
232 .27
316.08
399.57
483 .76
591.43
169 .99
265.74
361.6 1
457.39
553 .25
675.32
191.60
292 .22
392.80
493.45
594.10
720.99
816 .16
224.46
308.54
450.25
576.09
72 1.76
867 .4 1
54 .32
81.66
108.05
134.50
160.93
18 7.35
18,015 .19
5%
Franchise
Fee
6.80
11.09
15 .37
19.66
23 .94
29.49
7.81
12 .22
16.64
21.03
25 .46
31.13
8.95
13.99
19.03
24.07
29.12
35.54
10.08
15.38
20.67
25 .97
31.27
37.95
42 .96
11.81
16 .24
23 .70
30.32
37.99
45 .65
2.86
4.30
5.69
7.08
8.47
9.86
ATTACHMENT 8
2% Sol id
Waste
Mgmt
Fee
0.20
0.20
0 .20
2.12
4 .43
6.15
7.86
9 .58
11.79
3.12
4 .89
6.65
8.41
10.18
12 .45
3.58
5.59
7.61
9.63
11 .65
14.22
4 .03
6.15
8.27
10.39
12.5 1
15.18
17 .18
4.73
6.50
9.48
12.13
15 .19
18.26
1.14
1.72
2.27
2.83
3.39
3.94
Gross
Rate
34 .5 1
34.51
17.35
138.79
226.1 4
313.62
400.98
488.4 1
601.51
159 .35
249 .38
339 .37
429.01
519.40
635 .01
182.52
285 .33
388.26
491.09
594 .02
725 .08
205 .72
313 .75
421.14
529.81
637.88
774 .11
876 .31
240 .99
331 .28
483 .43
618 .54
77 4 .94
931.32
58.32
87 .68
116.02
144 .41
172 .79
201.16
18,0 15.19
Addi tional
Charge
Per Bin
113.59
186 .02
258.43
330 .91
400 .88
496 .42
130 .53
204 .51
278.54
352 .96
424 .02
518 .65
150.05
233.42
316.68
399.94
483 .10
592.23
168.58
255 .03
341.45
427 .80
514 .21
626.40
188 .4 1
257.50
3 76.70
481.62
602.49
71 7.40