HomeMy Public PortalAbout07) 7E Consideration of a Rate Adjustment by Athens ServicesAGENDA
ITEM 7.E.
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE: June 20 , 2017
TO: The Honorable City Council
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 City Council is requested to approve the rate adjustm ent request by Athens
Services for solid waste collection services to become effective July 1 , 2017 .
BACKGROUND:
1. On February 18 , 2003 , the City Council approved an Amended and Restated
Agreement with Athens Services , the City's franchise waste collector.
2 . On June 21 , 2016 , the City Council approved Athens Services ' rate adjustment
request for a 4.39% increase for single family residences and a 3 .93 % increase for
commercial uses (three yard bin) effective July 1, 2016 (Attachment "A"). These
increases were higher than previous years because they included increases to
address new laws regarding minimum wages and s ick pay , in add ition to the
annual increases based on the Consumer Price Index (CPI ) and Materials
Recovery Facility (MRF) tipping fees .
3. On May 30 , 2017 , Athens Services submitted a letter requesting City approva l of a
rate adjustment to be effective July 1, 2017 (Attachment "B").
ANALYSIS:
Athens Services is requesting City Council approval of a 3.0% si ngle fam i ly res idential
rate increase and a 2 .9% commerci al rate increase (for standard three yard bin ) for
solid waste collection services . This requested rate i ncrease is i n compliance w ith the
amended agreement between the City and Athens , which states the following in Section
8 .2:
City Counci l
June 20 , 2017
Page 2 of 3
"The Contractor may subm it an appl ication 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 not ice of ad j ustment in
landfill tipping fees from any disposal site presently be ing used pursuant
to this Agreement and (i i) the publication of the increase or decrease in
Consumer Price Index (CPI) for the previous 12-month period (May
through April) for al l urban consumers in the Los Angeles-Anahe im -
Riverside area , non -housing , but in no event later than June 1 for the
period starting July 1. The City Counci l will take action on the request as
soon as possible and w ill complete the approva l 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 Ag reement w ill be ca lcu lated as set
out in Exhibit "0 " attached and incorporated as if fully set forth here i n ."
Pursuant to Section 8 .2 of the amended agreement, Athens submitted their annual rate
adjustment request on May 30, 2016 (Attachment "B"). The submittal met the ti me
requirements of Section 8 .2 , as well as the rate formula requirements of Section 8.4 .
The requested adjustments are based on changes to thre e fee components : 1)
collection and transportation ; 2) processing ; and 3) disposa l. T he sum of t hese th ree
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 incl uded on sing le fam il y
resident ial accounts) and the 2% Solid Waste Management Fee . These two f ees 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 ; processi ng ) are
adjusted every July 1 based on the CPI change from April to April , or 2 .66% fo r this
adjustment. The disposal component is adjusted based on the percentage change to
the Athens MRF tipping fee , which is 3 .82 % fo r this ad j ustmen t. The tab le below
summarizes the proposed rate adjustments for the res idential and commercial
components based on the Gross Rate .
Fee Type Current Rate Effective Proposed Rate Effective Percent
July 1, 2016 July1,2017 Increase
Si ngle Fami ly $33 .51 $34 .51 2 .98 %
Resident ial
Commercial $199 .99 $205 .72 2 .87 %
(3 Yard Bi n)
At staff's request , the City 's consultant for solid waste services , R3 Consulting Group,
Inc ., reviewed the proposed rate adjustm e nt and th e justifi cat ion provided by Athens .
City Council
June 20 , 2017
Page 3 of 3
R3 did not identify any concerns with the adjustment and recommended that the C ity
Council approve the adjustment as proposed .
CITY STRATEGIC GOALS:
This item furthers the City's Strategic Goals of Good Governance and Pub lic Health
and Safety.
FISCAL IMPACT:
The requested rate adjustment will affect residential and commercial trash serv ice rates
but will have no impact on the Fiscal Year (FY ) 2017-18 City Budget.
ATTACHMENTS:
A. Athens Services approved 2016 rates
B . Letter from Athens Services dated May 30, 2017 with proposed rates to be
effective July 1, 2017
CITY OF TEMPLE CITY ATTACHMENT A
RATE ADJUSTMENT
EFFECTIVE JULY 2016
New 2% Solid
New Total New New 5% Waste
Collection & New Operations Disposal Net Franchise Mgmt G ross
Service Transport. Process . Comp. Comp. Rate Fee Fee Rate
Residential:
Single Family 15.39 9 .25 24.64 8 .67 33 .31 0 .20 33 .51
Units :
1st Unit 15 .39 9 .25 24.64 8 .67 33 .31 0.20 33.51
Each Add') Unit 16.65 0.20 16 .85
I YD IX 74 .95 40.23 115 .18 10.59 125 .77 6.62 2.65 135 .04
2X 120.92 63.45 184 .36 20.51 204.87 10.78 4.31 219.97
3X 166.92 86.67 253 .59 30.54 284 .13 14 .95 5.98 305.06
4X 212.90 109.86 322.77 40.49 363 .26 19.12 7 .65 390.03
5X 258.83 133 .11 391.94 50.50 442.44 23 .29 9.31 475 .04
6X 319.31 164.81 484.12 60.78 544.91 28.68 11.47 585 .06
1.5 YD IX 84 .88 44 .18 129.06 15 .30 144.37 7 .60 3.04 155 .0 1
2X 130.67 65.39 196.D7 29.81 225.87 11.89 4 .76 242.52
3X 176.43 86.59 263 .02 44.31 307.33 16 .18 6.47 329.98
4X 221.84 107.82 329.66 58.82 388.48 20.45 8.18 417.10
5X 267.94 129 .04 396.98 73 .32 470.30 24 .75 9.90 504.95
6X 328.16 15 8 .75 486.91 88.08 574.99 30.26 12 .11 617.36
2YD IX 96 .29 49.02 145 .31 20 .01 165.32 8 .70 3.48 177.50
2X 14 7.59 71.60 219.20 39.17 258.37 13 .60 5.44 277.41
3X 198 .94 94 .23 293 .17 58 .35 351.53 18 .50 7.40 377.43
4X 250.29 116.81 367.09 77.48 444.57 23 .40 9.36 477.33
5X 301.65 139.42 441 .07 96.64 537.72 28 .30 11 .32 577.34
6X 368.92 171.39 540 .31 116.D7 656.38 34.55 13 .82 704.75
3YD IX 106.00 50.96 15 6.96 29.31 186.27 9.80 3 .92 199.99
2X 15 6.90 69.54 226.45 57.50 283 .95 14.94 5.98 304.86
3X 207.81 88.13 295 .94 85 .65 381.59 20.08 8 .03 409.70
4X 258.73 106.73 365.46 113 .84 479.30 25.23 10.09 514 .62
5X 309.72 125.26 434.98 142.02 577.0 1 30.37 12 .15 619.53
6X 376.45 153 .27 529.73 170.54 700.26 36.86 14 .74 751.87
Roll Off 282.29 3 1 1.06 593 .35 199.28 792.64 41.72 16 .69 851 .04
4YD IX 122.52 56.98 179.50 38.66 218.16 11.48 4.59 234 .24
2X 160.03 63 .96 223 .99 75 .65 299.64 15 .77 6 .31 321 .72
3X 240.14 83 .81 323 .95 11 3.28 437 .23 23.01 9.20 469.44
4X 304.90 103 .65 408.5 5 150 .82 559.38 29.44 11.78 600.59
5X 376.02 136.26 5 12 .28 188 .53 700.81 36.88 14.75 752.44
6X 447.12 168.88 616.00 226.24 842.24 44.33 17.73 904.30
cc 30.89 13 .05 43 .94 8.86 52.80 2.78 1.11 56.69
2 45 .24 16.70 61.95 17.40 79.34 4.18 1.67 85 .19
3 58 .69 20.35 79 .05 2 5.90 104.94 5.52 2.2 1 11 2.67
4 72 .16 24 .01 96.18 34 .44 13Q.62 6.87 2.75 140 .24
5 85 .62 27.67 113 .30 4 2.96 156.26 8.22 3.29 167.77
6 99.09 31 .33 13Q.42 5 1.47 181.89 9.57 3.83 195 .29
Street Sweeping 14,380.65 14,380.65 3,132 .68 17,513 .33 17,513 .33
ATTACHMENT B
Athens Serv~~es
May 30,2017
Bryan Cook
City Manager
City ofTemple City
9701 Las Tunas Dr.
Temple City, CA 9 1780
Re: Annual Rate Review
Mr. Cook,
14048 Valley Blvd .
P.O . Box 60009
City of Industry, CA 91716-0009
Fax (626 ) 330-4 686
(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 effect ive July 1, 2017.
The operations componen t of the rates is based on the percentage change in the Consumer Price
Index from April 2016 to April 2017 of 2 .66%. The rubbish component is based on the
percentage change in the Athens MRF from July 2016 to July 2017 of 3 .82%.
Please handle the administrative processing of this request to make the rates effective July 1,
2017 and call me at (626) 855-7230 if you have any questi o ns.
Sincerely,
Christian Warner
Director
Enclosure
Cc : Tracey Hause , Administrative Services Director, City of T emple City
Gary Clifford, Ex ecutive Vice President, Athens Services
Service
Residential :
Single Family
Units :
1st Unit
Each Add'l Unit
I YO
1.5 YO
2 YO
3 YO
Roll Off
4 YO
cc
Street Sweeping
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
2
3
4
5
6
New
Collection &
Transport.
15 .80
15 80
76 .94
124 .13
171.36
218 .56
265 .71
327 .80
87.14
134 .14
181.12
227 .74
275 .06
336.88
98.85
15 1.5 I
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
119.92
143.13
175 .95
52.31
71.39
90.47
109.57
128.59
157 .3 4
319 .33
58.49
65 .66
86 .04
106.41
139.88
173.37
IJ.40
17.14
20 .89
24 .65
28.41
32.16
CITY OF TEMPLE CITY
RATE ADJUSTMENT
EFFECTIVE JULY 2017
New
Total
Operations
Com p.
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
I 16.30
133 .89
14,762.97
New
Disposal
Comp.
9.01
9.0 1
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
117 .69
156 .68
195 .86
235 .03
9.21
18.0 7
26 .9 1
35 .78
44.63
53.47
3,252 .22
New
Net
Rate
34.31
34.3 I
17 .15
129 .27
210 .62
292 .10
373 .46
454 .89
560.22
148.42
232.27
316.08
399.57
483 .76
591.43
169.99
265.7 4
361.61
457.39
553.25
675 .32
191.60
292.22
392 .80
493.45
594.10
720.99
8 16.16
224.46
308.54
450.25
576 .09
721.76
867.41
54.32
81.66
108 .05
134 .50
160.93
187 .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
3 1 13
8.95
IJ.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
7.0 8
8.47
9.86
2% Solid
Waste
Mgmt
Foe
0.20
0.20
0 20
2.72
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 I
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
34.51
34.51
17.35
138 .79
226 .14
313 .62
400 .98
488.41
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
421.74
529 .81
637 .88
774 .11
876 31
240.99
331 .28
483 .43
618 54
774 .94
931 32
58 .32
87 .68
116.02
144.41
172 .79
20 1.16
18,015 .19
Addition al
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
34 1 45
427 .80
514 .21
626.40
188.41
257 .50
376.70
481.62
602.49
7 17.40
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Data extracted on : May 12, 2017 (4 :27: 16 PM )
CPI -AII Urban Consumers (Current Series)
Sariaa Id : CUURA~21S A O
Not Sea sonally Ad justed
M ore f ormatting O ptions~
Series T i tle: All ltems i n Los Ange les-R1vers1de-Orange County, CA , dll urban cons umers , not scaso~a •• y ao:;stca
Area : Los ~~ge l es-R1vers l de-Oranqe County, CA
Item : All l t ems
Ba s a Period : :9~2·8~tt100
Download : Et ·.!!!!!
-·-. ····--,.--------.. --I ----. ·---De~ -An nual 1 HALF1 ' HALF·i-Year Jan Feb Mar Apr May Jun lui Aug Sep Oct Nov
2007 212.584 214.760 2 16.500 217 .845 218.596 217.273 217.454 217 .330 217.697 218.696 219.943 219 .373 217 .338 216.260
2008 220.918 221.431 223 .606 224.625 226.651 229.033 229 .886 228 .484 227 .449 226.159 222 .229 219 .620 225.008 1 224 .377
2009 220.719 221 .439 221.376 221.693 222.522 223.906 224 .010 224 .507 225 .226 225.264 224 .317 223 .643 223.219 221.943
2010 224.610 224.620 22 5.483 22 5 .916 226.438 225.877 225.991 226.373 226.048 226 .794 225 .941 226.639 225.894 225.4 91
2011 228 .65 2 229.729 232.241 233.319 233 .367 232.328 231.303 231.833 233.022 233 .0 49 232 .731 231.567 231.928 231.606
2012 233 .441 234.537 236.941 236 .866 237.Q32 236.025 235.776 237.222 238.104 240.111 237 .675 236.042 236.648 235.807
2013 238 .015 239.753 239.995 239 .043 239 .346 239 .223 238 .920 239.219 239.611 2.39 .940 238 .677 238.742 239.207 239.229
2014 239.857 241.059 242.491 242 .437 243.362 243.528 243 .727 243 .556 243.623 243.341 241.753 240.475 242 .4 34 242.1 22
2015 239 .724 241.297 243 .7 38 243 .569 246.093 245.459 247 .066 246 .328 245 .431 245.812 245.711 245.357 244 .632 243.313
2016 247.155 247.113 247 .873 248 .368 249.554 249 .789 249 .784 249 .700 i 250.145 251.098 250.185 250.189 249 .246 248.309
2017 252.373 253 .815 254 .525 254 .971
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http s://data.b1s.gov/cgi-bin/surveymost 5/12/2017
COUNTY SANITATION DISTRICTS
OF LOS ANGELES COUNTY
1955 Work man Mill Rood, Whittier, CA 90601 -1400
Mo ili ng Add ress: P.O . Box 4998 , Whittier, CA 90607 -4998
Telephone : (562) 699 -741 1, FAX : (562 ) 699 -54 22
www.locsd .org
Dear Solid Waste Facility Customer:
May 25,20 17
GRACE ROBINSON HYDE
C hieF Engineer ond General Manager
Solid Waste Manaeement Facilities Rates
This is to advise you of new municipal solid and inert waste (MSW) rates to be charged at the
Puente Hill s Materials Recovery Facility (MRF), the Downey Area Recycling and Transfer (DART)
Facility, the South Gate Transfer Station, and the Scholl Canyon LandfiU effective July I, 2017. The
Sanitation Districts boards were briefed in April and the Board of Sanitation District No. 2, the
administrative district, adopted a revised rate ordinance on May 24, 201 7.
The MSW rate at the Puente Hills MRF would increase from $55 .5 0 per ton to $58.40 per ton .
The MSW rate at the DART Facility would increase from $58 .39 per ton to $62.49 per ton . The MSW
rate at the SGTS would increase from $58 .66 per ton to $63 .16 per t on . The MSW rate at SCLF would
increase from $49.18 per ton to $53 .83 per ton. Similar changes to the rates for hard-to-handle, bulky
items, minimum load charges and pull-offs would also be implemented at the various sites .
The County of Los Angeles, which has rate setting authority for the Calabasas Landfill, is expected
to adopt new rates for the Calabasas Landfill, effective August 1, 20 17. The MSW rate at the Calabasas
Landfi ll is expected to increase from $47.32 per ton to $52.32 per ton. Similar changes to the rates for
hard-ta:-handle, bulky items, puH-offs and minimum load rates are also expected.
Effective July 1, 2017, the greenwaste rate at the Puente Hills MRF would increase from $41.50
per ton to $45 .50 per ton . The greenwaste rate at the DART Facility would increase from $43.50 per ton
to $47 .50 per ton. The greenwaste rate at SCLF would increase from $32 .04 per ton to $37.04 per ton.
The greenwaste rate at CALF would increase fr om $31 .98 per ton to $36.98 per ton . These increases are
necessary to offset the higher operating costs of the greenwaste programs at the facilities.
A copy of the new rate schedule is enclosed. If you have any questions regarding the rates, please
call Felicia Petrie at (562) 908-4288 , extension 2759.
CEB :FP :gc
Enclosure
DOC41478SI
Very truly yours,
CIL-L~
Charles E . Boehmke
Department Head
Solid Waste Management Department
ft
Recycled Paper "I