HomeMy Public PortalAbout18) 10A Consideration of a Rate Adjustment request for Waste Services from Athens, Inc.AGENDA
ITEM 10.A.
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE: July 1, 2014
TO: The Honorable City Council
FROM: Donald E. Penman, Interim City Manager 1f?
Via: Michael Forbes, Community Development Director
By: Robert Sahagun, Public Safety and Services Manager
SUBJECT: CONSIDERATION OF A RATE ADJUSTMENT REQUE FOR WASTE
SERVICES FROM ATHENS SERVICES, INC.
RECOMMENDATION:
The City Council is requested to approve the rate adjustment request for waste
collection rates made by Athens Services, Inc. (Athens) to become effective July 1,
2014.
BACKGROUND:
1. On February 18, 2003, the City Council approved an Amended and Restated
Agreement with Athens Services, the City's contract waste collector.
2. On May 30, 2014, the City was notified by Athens Services, of the adjusted rates
for waste services to be effective July 1, 2014.
ANALYSIS:
Section 8.2 (Rate Review) of the amended agreement between the City and Athens
Services states:
"The Contractor may submit an application for rate review not more often
than annually. The complete application 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 (CPI) for the previous 12-month period (May
through April) for all urban consumers in the Los Angeles-Anaheim-
City Council
July 1, 2014
Page 2 of 4
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 possible and will complete 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 herein."
Pursuant to Section 8.2 of the amended agreement, Athens submitted a Rate
Adjustment Request on May 30, 2014 (Attachment "A"), and the submittal met the time
requirements of Section 8.2.
Athens is requesting a rate adjustment of 1.42% increase over last year's rate. The
Rate is broken down into 4 components: 1) Collection & Transportation; 2) Process; 3)
Green Waste Disposal; and 4) Rubbish Disposal. These 4 components add up to what
is called the "Net Rate", or the portion that goes to Athens. "Single Family Residential"
is the only service category that includes component 3) Green Waste Disposal, since
only single family residents separate their waste between green waste and everything
else. The proposed rate also includes a 5% City Franchise Fee and a 2% Solid Waste
Management Fee. The "Net Rate" plus the two City Fees constitute the "Gross Rate",
or total rate to the customer. "Single Family Residential" is the only service category
that does not include the Franchise Fee.
Components 1 & 2 are adjusted every July 1 based on the Consumer Prices Index
(CPI) change from April to April, or 1.42% for this adjustment. Component 3 is adjusted
by the % change in the posted green waste gate fee at Puente Hills, while component 4
is adjusted by the % change in the posted rubbish gate fee at Puente Hills. The
Disposal components are adjusted at the same time the gate fees change at Puente
Hills, which is the cause for Athens' rate adjustment last November 1, 2013, adjusting
only the disposal components of the rate not including the first 2 components. At this
time, Athens is only proposing to adjust the first 2 components. Since the rubbish and
green waste components of the rates were adjusted in November of 2013 due to the
closure of the Puente Hills Landfill, those components do not presently require an
adjustment. The two tables on the next page summarize the proposed rate adjustment.
City Council
July 1, 2014
Page 3 of 4
Single Family Residential
Component
I) Collection & Transportati on
2) Process
3) Green Waste Disposal
4) Rubbish Disposal
Net Rate
Franchise Fee
Waste Management Fee
Gross Rate
Total % Change to Gross Rate
Commercial 3 Yard Bin
Component
I) Collection & Transportation
2) Process
3) Green Waste Disposal
4) Rubbish Disposal
Net Rate
Franchise Fee
Waste Management Fee
Gross Rate
Total % Change to Gross Rate
Nov 1, 2013
Amount
14.81
8.90
1.00
6.48
31.19
-
0.20
31.39
Nov 1, 2013
Amount
102.02
49.05
-
24.43
175.50
9.24
3.69
188.43
Jul1,2014 Jul1,2014 Jul 1,2014
%Change Adjustment Amount
1.42% 0.21 15.02
1.42% 0.13 9.03
0.00% -1.00
0.00% -6.48
3 1.53
-
0.20
31.73
1.07%
Jul 1, 2014 Jul 1,2014 Jul1,2014
%Change Adjustment Amount
1.42% 1.45 103.47
1.42% 0.70 49.75
0.00% --
0.00% -24.43
177.64
9.35
3.74
190.73
1.22%
Attached are the rate adjustments for 2014 (Attachment "B") and 2013 (Attachment "C")
which outline in detail the proposed rate adjustments for Temple City customers. The
new rates would be effective starting July 1, 2014.
CONCLUSION:
The City Council is requested to approve the rate adjustment request by Athens, per
the provisions of their agreement. The new rates would be effective July 1, 2014. The
new single-family rate would increase from $31.39 to $31 .73 per month and the rate for
a three cubic yard bin would increase from $188.43 to $190.73.
FISCAL IMPACT:
The rate increase will affect residential and commercial trash service and will have no
impact to the Fiscal Year (FY) 201 4-15 City Budget.
City Council
July 1, 2014
Page 4 of 4
ATTACHMENTS:
A. Letter from Athens Services dated May 30, 201 4
B. Rate Adjustment Effective July 2014
C. Rate Adjustment Effective July 2013
ATTACHMENT "A"
Athens Services
.. Waste Collection·Recycling·Transfer•Disposai•Street Sweeping
14048 Valley Blvd.
May 30,2014
Tracey L. Hause
Acting City Manager
City of Temple City
970 I Las Tunas Dr.
Temple City, CA 91780
Re: Annual Rate Review
Mr. Pulido:
P.O. Box 60009
C1ty of Industry, 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 I, 2014.
The operations component of the rates is based on the percentage change in the Consumer Price
Index from April 2013 to April 2014 of 1.42%. As the rubbish and green waste components of
the rates were adjusted last November 2013 due to the closure of the Puente Hills Landfill, these
components do not need an adjustment at thi s time.
Please handle the administrative processing of this request to make the rates effective July 1,
2014 and call me at (626) 855-7230 if you have any questions.
Sincerely.
Christian Warner
Controller
Enclosure
Cc: Gary Clifford, Executive Vice President, Athens Services
Sei"\1Ce
Res1dent1al
Smglc Fam1ly
Unns
1st Umt
Each Add'l Unn
I YD
I 5 YD
2 YD
3 YD
Roll Off
4 YD
cc
Street S\\cepmg
IX
2X
3X
4X
5X
6X
IX
2X
3X
4X
5X
6X
IX
2X
3X
4X
5X
6X
IX
2X
3X
4X
5X
6X
IX
2X
3X
4X
5X
6X
4
5
6
New
Collcctiun &
Transpon
15 02
15.02
73.16
118.03
162.93
207 82
252 65
3 11 68
82 85
127.55
172.22
216.54
261.54
32032
93 99
144 07
194 19
244 31
294 45
360.11
103.47
153.15
202.84
252.55
302.23
367 46
275.55
119.59
156.21
23~ 41
297 62
367 04
436 44
30 15
44.16
57 29
70.44
83.58
96 73
8.773 28
Nt:\\'
Process
9.03
9.03
39.27
61.93
84.60
107 24
129 93
160.88
43.13
63.83
84.53
105.25
125.96
154 96
47 85
69 89
91 98
114 02
136.09
167.30
49 75
67.88
86 03
104 18
122.27
149 61
303 63
55.62
6243
81 81
101 18
13301
164 85
12.74
16 30
19.87
23.44
27.01
30 58
New
Total
Operauons
Comp
24 05
24 05
112.43
179.96
247.54
315 06
382 58
472.57
125 98
19138
256 75
321 79
387.50
475 28
141 84
213 96
286 17
35833
430.54
527 41
153.21
221 03
288 87
356 72
424.50
517 08
579 18
175.21
2 18~
3 16 22
398 79
500 05
601 29
42.89
6046
77 16
93.87
110.59
127 3 1
8,773 28
C ITY OF TEMPLE C ITY
RATE ADJUSTMENT
EFFECTIVE JULY 2014
Ne\\
Green
Disposal
Comp
100
100
New
Rubb1sh
D1sposal
Comp.
6 48
6.48
8.16
16.25
24 43
32.55
40 71
48 87
12 22
24 43
36.64
48.87
61 08
73 26
16 25
32 55
48 87
65 13
81 44
97.69
24.43
48 87
73 26
97 69
122 II
146 55
171.54
32.55
65 13
97 66
13029
162 85
195 40
7 43
14 86
22.27
29.72
37.15
44 57
1.773 22
New
Total
Disposal
Comp.
7.48
7.48
8.16
16.25
24.43
32.55
40 71
48 87
12.22
24.43
36.64
48.87
61.08
73 26
16.25
32.55
48 87
65.13
81.44
97.69
24 43
48.87
73.26
97 69
122 II
146 55
171 54
32.55
65 13
97 66
13029
162.85
195.40
7.43
14.86
22.27
29.72
37.15
44.57
1.773 22
Ne\\
Net
Rate
31 53
31 53
15.76
120.59
196.21
271.97
347 61
423 29
521.44
138 20
215.81
29339
370.66
448 58
518 54
158 09
246 51
335.04
423 46
511.98
625 10
177.64
269 90
362 13
454 41
546 61
663 63
750 72
207 76
283 77
413 88
529 08
66290
796 69
50 32
75.32
99.43
123.59
147.74
171.88
10,546 50
5•.
Franchise
Fee
6.35
1033
14 31
18 30
22.28
27.44
7 27
11.36
15.44
19.51
23 6 1
28 87
8.32
12.97
17 63
22.29
26 95
.'290
9.35
14 2 1
19 06
23 92
28 77
34 93
39 51
10.93
I~ 94
21 78
27 85
14 89
41 93
2 65
3.96
5.23
6.50
7.78
9 05
2•" Solid
Waste
Mgmt
Fee
0 20
0.20
0.20
2.54
4.13
5 73
732
8 9 1
1098
2 91
4.54
618
7.80
9 44
11.55
3 33
5 19
7 05
8 91
10 78
13.16
3 74
5 68
7 62
9.57
11.51
13 97
15.80
4 37
5.97
8 71
II 14
1396
16 77
1.06
1.59
2.09
2.60
3.11
3.62
Gross
Rate
31 73
3 1 73
15.96
129.48
210.67
292.00
37323
454.48
559 85
148.38
231 71
315.01
397.98
481 64
588 96
169 73
264 66
359 72
454 66
549.71
671 16
190.73
289.80
388.82
487 90
586 89
712.53
806.03
223.07
304 69
444 37
568 07
71 1.75
855 39
54 03
80.86
106.75
132.70
158.63
184 55
10,546 50
Addn10nal
Charge
PerBm
106.12
173.61
241 04
308.55
373 73
462 86
121 77
19042
259 10
328.15
394 05
482 10
139 83
217 00
294 08
371 20
448 21
549.57
156.68
236 18
315 71
395 16
474 77
578 37
174 74
237 42
347 17
443 48
554 82
660 59
~ ~
)>
(')
I s: m z ~
-(II
··i ClTY OF TEMPLE CITY
RATE ADJUSTMENT
EFFECTIVE JULY 2013
l%SOLID
TOTAL CREENWAS'!'fi RUBBISH TOTAL NEW 5% WASTE NEW ADDmONAL
OPERATIONS DISPOSAL DISPOSAL DISPOSAL NllT FRANCHISE MANAGEMENT GROSS CHARGE
Service COMl'ONEji(J' COMPONENT COMPONENT COMPONfiNT RATB Fl!l! I'1<E RATE P6RBIN
RCSJdential:
sinweFamily 2372 0.6<4 5.44 6.08 29,79 0.20 29.99
Uniw:
lot Unit 23.72 0.64 5.44 6.08 29.79 020 29.99
l':acb Add'l Urut 14.90 0.20 15.10
I YO IX 110.86 6.85 6.85 J 17.71 6.20 '2.48 126.39 103.73
2X 177.44 1364 13 64 191.08 10.06 4.0'2 20516 16Q,39
3X 244.07 20.51 20 . .51 264..58 13.93 5.57 284.08 234.97
4X 310.65 27.33 27.33 337.98 17.79 7.12 362.88 300.66
5X 377.22 :14.18 34.18 41 1.40 21.65 8.66 441.71 364 05
6X 465.95 41.03 41.03 506.98 26.68 10.67 $44.34 451.03
1.5 YD IX J1A.22 10.26 10.26 134.48 7.08 2.83 144.39 118.73
2X 188.70 20.51 ZO.::it 209.21 ll.Ol 4.40 224.62 185.09
3X 253.16 30.76 30.76 283.92 14.94 5.98 304.83 251.48
4X 317.29 41.03 41.03 358.32 !8.86 7.$4 W.72 3!8.21
sx 382.08 51.28 51.28 433.36 22.ll1 9.12 465.29 3SI.8S
6X 468 63 61.51 61.31 530.14 27.90 11.16 .569.20 467.33
2 YO IX 139.85 13.64 13.64 153.49 8.08 3.23 164.81 136.09
zx 210.96 27.~3 21.33 238.29 12..54 5.02 255.&5 210.39
3X 28216 41.03 4 1.03 323.19 17.01 6.80 :>47.00 284.61
4X 353.32 546ll 54.68 403 00 21 47 8.59 438.06 358.88
sx 424.52 68.:!7 68.37 492.S9 25.94 10.38 529.20 433.03
6X 520.04 82.02 82.02 602.06 31.69 12.67 6<46.42 531.16
3 YO IX 151.07 20.51 20.51 171.58 9.03 3.61 184.2'2 151.81
2X 217.93 4103 41.03 25896 13.63 545 278.05 227.54
3X 284.83 6Ul 61.51 340.34 1~.23 7.29 371 87 30'\ 24
4X J51.72 8202 82.02 433 74 22.83 9.13 465.70 378.92
5X 418.56 102.52 102.52 521.08 27.43 10.97 5.59.48 454.74
GX 509.84 123.04 123.04 632.88 33.31 13.32 679.52 554.22
Roll Oil' 571.07 144.02 144.02 115.09 37.64 15.05 767.79 ~
<!Y'D IX 172.76 27.33 27.33 200.09 10.53 4.21 214.84
_,
2X 215.58 54.68 54.68 270.26 14.22 5.69 290.17 _,
.(X 393.21 109.39 109.39 50260 26.45 10.58 539.63 ~
5X 493 OS 136.72 136.72 62.9.77 33.15 13.26 67618
6X 591.81 . l64.CS 164.05 75692 39.84 15.94 812.09 629.94 ()
cc : 42.30 6.24 61A 48 54 2..55 1.02 52.11 I
2 59.60 12.48 l2.4S 72.08 3.79 1.52 77.39 5:
76.08 l8 70 18.70 9478 499 2.00 101.77
4 92.56 24.~5 24.95 117.51 6,18 2.47 126.17 m
s 109.04 31.19 31.19 HO.l3 7.38 2.95 150.51 z
6 !25..53 37.42 37.42 162.95 8..58 3.41 174.96 _,
Street S•.-.-cplng 8,650.46 1,488.73 I ,488.73 10,139.19 10,139.19
()
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