HomeMy Public PortalAbout08) 7C Consideration of Rate Adjustment Request by Athens ServicesAGENDA
ITEM 7.C .
COMMUNITY DEVELOPMEN T DEPART MENT
MEMORANDUM
DATE: June 18 , 20 19
TO: The Honorable City Counci l
FROM : Bryan Cook, City Manager
By : Michael D. Forbes , Commun ity Development Di rector
SUBJECT: CONS IDERATIO N OF RATE AD J USTMENT REQUEST BY AT H E N S
SERVICES FOR SOLID WASTE COLLECTION
RECOMMENDATION :
T he City Council is req uested to a pprove t he rate adjustment request by Athens
Services (Athen s) fo r solid waste collection serv i ces to become effective J uly 1, 2019
(Attachment "A").
BACKGROUND :
1. On February 18 , 2003 , the Ci ty Counci l approved an Amended and Restated
Ag reement with Athens , the C ity's fran c hise waste c ollector.
2 . On June 19, 2018, the C ity Counci l app roved Athens ' rate adjustme nt requ est for
a 4 .06 % increase fo r si ng le fam il y res idences a nd a 4 .03 % i ncreas e for
commercial uses (th ree -yard bi n) effective July 1, 2018 (Attachment "B"). Per the
terms of t he A greement, these increases were based on increases in the
Consumer Price Index (CPI ) and Materials Recovery Fac ility (MRF) t ipping fees .
3 . On May 30 , 2019 , Athens submitted a letter request ing C ity approval of a rate
ad j us tment to be effective Ju ly 1, 2018 (Atta c hment "A ").
ANALYSIS :
Athens is requesting C ity Council approval of a 2.90 % increase for s in g le f am il y
resident ia l and a 3 .08 % rate i ncrease for commerc i al (t hree-yard bi n) so lid waste
co ll ection services . T his request compl ies w ith the Agreement between t he City and
Athens , wh ich states the follow in g i n Section 8 .2 :
City Council
June 18 , 2019
Page 2 of 3
"The Contractor may submit an application for rate review not more often
than annually. The complete app lication shall be submitted within ten (1 0)
days after (i) the Contractor receives the annual notice of adjustment in
landfill tipping fees from any disposal site presently being used pursuant
to this Agreement and (ii) the publication of the increase or decrease in
Consumer Price Index (CP I) for the previous 12-month period (May
through April) for all urban consumers in the Los Angeles-Anaheim-
Riverside area , non-housing , but in no event later than June 1 for the
period starting July 1. The City Council will take action on the request as
soon as possib le and will comp lete the approval process by July 1. The
application shall show how the rate increase meets the formula set out in
Section 8 .4 ."
Section 8.4 (Rate Formula ) states :
"Any rate adjustment pursuant to this Agreement will be calculated as set
out in Exhibit "D" attached and incorporated as if fully set forth here in ."
Pursuant to Section 8 .2 of the Agreement, Athens submitted their annual rate
adjustment request on May 30 , 2019 . The submittal met the time requirements of
Section 8.2 and the rate formula requirements of Section 8.4 .
The requested adjustments are based on changes to three fee components : 1)
collection and transportation ; 2) processing; and 3) disposal. The sum of these three
components is known as the Net Rate and is the portion that goes to Athens . The other
fee components are the 5 % City Franchise Fee (not included on single family
residential accounts) and the 2% Solid Waste Management Fee . These two fees are
added to the Net Rate to determine the Gross Rate , which is the total paid by the
customer.
The operations components of the rates (collection and transportation; processing) are
adjusted every July 1 based on the April CPI , which is 3.34 % for April 2018 to Apri l
2019 . The disposal component is adjusted based on the percentage change to the
Athens MRF tipping fee , which is 1.74 % for July 2018 to July 2019 . The table below
summarizes the proposed rate adjustments for the residential and commercia l
components based on the Gross Rate .
Fee Type Current Rate Effective Proposed Rate Effective Percent
July 1, 2018 July1 ,2019 Increase
Single Family $35.91 $36 .95 2 .90 %
Residential
Commercial $214 .01 $220 .61 3 .08 %
(3 Yard Bin)
City Council
June 18 , 2019
Page 3 of 3
CITY STRATEGIC GOALS:
Approving the requested rate increase furthers the City's Strategic Goals of Good
Governance and Public Health and Safety .
FISCAL IMPACT:
The requested rate adjustment will affect resident ial and commercia l trash serv ice rates
but will have no i mpact on the Fiscal Year (FY) 2019-20 City Budget.
ATTACHMENTS:
A. Rate increase request from Athens dated May 30 , 2019
B. Athens approved 20 18 rates
---~---------------
· . .. ATTACHMENT A Athens Services ·
May 30,2019
Bryan Cook
City Manager
· City ofTemple City
9701 Las Tunas Dr.
Temple City, CA 91780
Re: Annual Rate Revie\V
Mr. Cook,
1404B V11lley Blvd.
P.O. Box 60009
City of lndust'ry, CA 91716-0009
Fax (626) 330-4686
(626) 336-3636
In accordance with 'our agreement with the City of Temple City, we have adjusted th e rates for
wa ste services, as referenced in the attached Exhibit, to be effective Jul y I , 2019. ' .
T he operations component of th e rates is based on the percentage change in the Consumer Price
Index from April2018 to April2019 of3.34%. The rubbi sh component is ba se d on the per~en tage
c hange in t he Athens MRF from July 20 18 to July 2019 of 1.74%. ·
Please handle the administrative processing of this reques t to make the rates effecti ve July 1, 2019
and call me at (626) 8?5-7230 if you have any questions .
Siricerely,
c~
Christian Warner
Vice President -Govenunent Affairs
Encl osure
Cc: Clint Bartlett, Senior Director of Fina nce, Athens Serv ices
Service
Residential :
Single Family
Unit s:
1st Unit
Each Add'( Unit
1 YD
1.5 YD
2 YD
3 YD
Roll Off
4 YD
cc
Street Sweep ing
I X
2X
JX
4X
5X
6X
IX
2X
3X
4X
5X
6X
IX
2X
3X
4X
5X
6X
IX
2X
3X
4X
SX
6X
I X
2X
3X
4X
5X
6X
2
3
4
5
6
New
Collection &.
Transport .
16.98
16.98
82.67
133.38
184 .1 1
234.83
285.49
352.20
93.62
144 .13
194.60
244.68
295.54
361.96
106.2 1
162.79
219.43
276.o7
332.72
406.92
11 6.92
173.06
229.21
285.38
341.62
4 15.22
311.37
135 .14
176.5 1
264.88
336.30
414.75
493.17
34.07
49.90
64.73
79.59
94.44
109 .29
15,861.80
New
Process.
10.2 1
10.2 1
44.37
69.98
95.60
121.17
146.82
18 1.78
48.73
72.12
95.51
118.92
142.33
175.10
54.07
78.97
103.94
128.84
153 .78
189.05
56.21
76.70
97.21
117 .72
138.16
169.05
343.09
62.85
70.55
92.45
114.32
150.30
18 6.28
14.40
18.41
22.45
26.49
30.52
34.56
CITY OF TEMPLE CITY
RATE ADJUSTMENT
EFFECTIVE JULY 2019
New
To tRI
Operntions
Co mp .
27.19
27 .19
127 .04
203.36
279.71
356.00
432.3 1
533.98
142.35
216.25
290.1 1
363.60
437.87
537.06
160.28
241.76
323.37
404.91
486.50
595.97
173.13
249.76
326.'12
403 .10
479.78
584.27
654 !1 6
197.99
247.06
357.33
450.62
565.05
679.45
48.47
68.3 1
87.18
106.08
124.96
14 3.85
15,861.RO
New
Disposal
Co mp .
9.56
9 .56
11.69
22.64
33.70
44 .69
55.73
67.07
16.88
32.89
4 8.90
64.9 1
80.9 1
97.20
22.08
43.22
64.39
85.50
106.65
128.09
32.34
63.45
94.52
125.62
156.73
188.20
219.91
42.66
83.48
125.00
166.43
208.05
249.66
9.78
19.20
28.58
38.00
47.40
56.7 9
3,456.96
New
Net
Rnte
36.75
36.75
18.38
138.73
226.00
313.41
400.69
488.04
601.05
159.23
249.14
339.01
428 .5 1
5 18 .78
634 .26
182.36
284.98
387.76
490.41
593.15
724.06
205.4 7
3 13.21
420.94
528.72
636.51
772.47
874 .37
240.65
330.54
482.33
6 17.05
773.10
929.1 1
58.25
87.51
11 5.76
14 4.08
172.36
200.64
19,3 18 .76
5%
Franchise
Fee
7.30
11.89
16.50
21.09
25.69
31 .63
8.38
13 .11
17 .84
22.55
27.30
33.38
9.60
15.00
20.4 1
25.8 1
31.22
38.1 1
10.81
16.48
22.15
27.83
33 .50
4 0.66
46.02
12.67
17.40
25.39
32.48
40.69
48.90
3.07
4.6 1
6.09
7.58
9.07
10.56
2%Solid
Was te
Mgmt
Fcc
0.20
0.20
0 .20
2.92
4 .76
6 .60
8.44
10.27
12.65
3.35
5.25
7.14
9.02
10.92
13.35
3.84
6.00
8.16
10.32
12.49
15.24
4"33
6.59
8.86
11.13
13.40
16 .26
18.4 1
5.07
6.96
10.15
12 .99
16.28
19.56
1.23
1.84
2.44
3.03
3.63
4.22
Gross
Rate
36.95
36.95
18.58
148.95
242.65
336.51
430.22
524.00
645.33
170.96
267.50
363.99
1160.08
557.00
680.99
195 .80
305.98
416.33
526.54
636.86
777.41
220.61
336.28
451.95
567.68
683 .41
829.39
938.80
258.39
354.90
517.87
662 .52
830.07
997.57
62.55
93.96
124.29
154.69
185.06
2 15.42
19,318.7 6
Additional
Charge
Per Bin
121.98
199.75
277.45
355.23
430.36
532.97
140.15
219.52
298.94
378.81
455 .03
556.61
161.09
250.5 1
339.79
429.12
518.28
635.40
180.90
273.57
366.15
458.73
551.31
671.63
202.1 1
276.06
403.8 1
516.22
645.75
768.93
CPI-AII Urban Consumers (Current S eries)
Original Data Value
Series ld: CUURS49ASAO
Not S easonally Adju sted
Series All items in Los Ange les-Long Beach-Anaheim, CA , all
Title: urban consumers, not seasonally adjusted
Area : Los Angeles-Long Beach-Anaheim , CA
Item: All items
Base 1982-84=1 00
Period :
Years: 2009 to 2019
Year Jan Feb Mar Apr May
2009.00 220.7 19 221.439 221 .376 221 .693 222.522
2010.00 224.6 10 224.620 225.483 225.916 226.438
2011 .00 228.652 229.729 232 .241 233.319 233.367
2012.00 233.441 234.537 236.941 236.866 237.032
2013.00 238.015 239.753 2 39 .995 239.043 239.346
2014.00 239.857 241 .059 242.491 242.437 243.362
2015.00 239.724 241.297 243 .738 24 3.569 246.093
2016.00 247 .1 55 247.113 247 .873 24 8 .368 249.554
2017.00 252.373 253.815 254 .525 254.971 255.674
2018.00 261 .235 263.012 264 .1 58 265.095 266.148
2019.00 269.468 269.608 27 1 .311 273.945
273.945 CPI -CY
265.095 CPI -PY
8 .850 Change#
265.095 CPI -PY
3.34% Change %
Jun Jul Aug Sep Oct Nov Dec Annual
223 .906 224 .010 224.507 225 .226 225.264 224.317 223.643 223.219
225 .877 225.991 226.373 226 .048 226.794 225 .941 226 .639 225.894
232.328 231 .303 231 .833 233 .022 233.049 232 .731 231 .567 231 .928
236.025 235.776 237.222 238 .104 240.1 11 237.675 236.042 236.648
239 .223 238.920 239 .219 239 .61 1 239.940 238.677 238.742 239.207
243 .528 243.727 243.556 243 .623 243.341 24 1 .753 240.475 242.434
245.459 247.066 246 .328 245.431 245.812 245.7 11 245.357 244.632
249.789 249.784 249 .700 250.145 251 .098 250 .185 250.189 249.246
255.275 2 56 .023 256 .739 257 .890 258.883 259.135 25 9.220 256.210
265.522 266.007 266.665 268.032 269.482 268.560 267.631 265.962
ATTACHMENT 8
CITY OF TEMPLE CITY
RATE ADJUSTMENT
EFFECTIVE JULY 2018
Nc-.Y 2 ~. Sohd
N~ TO( a\ New New 5~o Waste AddiUonal
Co llection & New Operations Dispo!>al Net Fnwchise Mgmt Gross Charge
Scrv1ce rransE!!!: Process Com~. Com2 Rate Foe Fee R8le Per Bin
Re:sldtnllll
Smgle Fanuly 16 .43 9.88 26 .30 9 40 35 71 0.20 35 .91
UnilS '
1st Umt 16.43 9.88 2630 9 40 35 .71 0.20 35 .91
Each Add'! Unit 17 .85 0.20 18.05
IYD IX 80.00 ~2 94 122 .94 II ~9 134 .42 7.07 2.83 144.33 118 .18
2X 129.07 67 72 196 79 22 25 219.03 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 227.24 117 .26 344.50 43 92 388.42 2044 8 18 417 ().t 344.29
sx 276 .27 142.08 41834 54 77 ~73 .11 24.90 9.96 507 98 41711
6X 340.82 175.91 516 73 65 92 582.65 30.67 12.27 625 .59 516.52
l.S YD IX 90.60 47 16 137.75 16 59 154.35 8.12 3.25 165 72 135.8 1
2X 139 47 69.79 209.27 32 33 241.60 12.72 5.09 259.40 212 .81
3X 188 .31 92.42 280 74 48 .06 328.80 17 .31 6.92 353 .02 289 84
4X 236 78 115.08 351.87 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 44125
6X 350.27 169 44 519 71 95 .53 615 24 32.38 12.95 660 57 539 74
2YD IX 102 78 52.32 155 .10 21.70 176 .80 9.31 3.72 189 83 156 14
2X 157 .53 76.42 233.96 42 .48 276 .44 14 .55 5.82 296 .81 24291
lX 212 .34 100 51 312 .92 63 29 376 .21 19 .80 7.92 403 93 329 ss
4X 267 .15 124.68 391.83 84.03 475.86 25 .05 10.02 510.93 41 6.23
5X 321.97 148.81 470 78 IOU2 575 .60 30.29 12 .12 618 01 502 79
6X 393 .77 182 .94 51611 125.89 702 .60 36.98 14 79 754 .37 6lt'l.36
3 YD IX 113 14 54.39 167 53 3 1 79 199 32 10.49 4.20 214 01 175-13
2X 167 47 74 22 241.69 62 36 304 .06 16.00 640 326.46 265 45
JX 22111 94 07 31H8 9290 .$08.77 21.51 8 61 438 89 35541
4X 276.16 113 92 390.08 123.47 513.55 27 .03 10 81 551 39 445 33
sx 330.58 133.70 464 28 154.04 618.32 32.54 13 02 66 3 88 535.)0
6X 401.81 16J.S9 565.40 184 97 750 .37 39.49 15.80 805 6b 652 09
RoiJOIT 301 3 I 332 .01 633.32 216.14 849.46 44.71 1788 912 OS
4 YD IX 130 77 60 82 191.59 41.93 233.52 12 .29 4.92 250 73 196.08
2X 170.81 68.27 239.08 82 .05 321.13 16.90 6.7 6 344 79 268 10
JX 256.32 89.46 345 .77 122.86 468 .64 24 .67 9.87 503 17 392 20
4X 315 .44 110.63 436.07 163 .5 8 599.65 31.56 12.62 643 84 SOl 44
5X 401.35 145.44 546.79 204 48 751 .27 3954 15 .82 806 63 627 30
6X 477.24 180.2 6 657 so 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 6611 18 .87 84.98 4.47 I 79 91 2S
3 62.64 21.72 84 .36 28 09 112.46 5.91 2.37 120 74
4 77.02 15 .63 10265 37 35 140.0 0 7.37 295 ISO 32
s 91.39 29 53 120.92 46 .59 167 52 8.82 3.53 179 86
6 105.76 33.44 139.21 55.82 195.03 10.26 4 I I 20940
Street Swcepmg 15 ,3 49.37 15 .3 49.3 7 3,397 71 18 .747 08 18.747 08