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Home My WebLink AboutMINUTES - 02281995 - 1.92 `� A TO: BOARD OF SUPERVISORS • / Contra Costa FROM: Val Alexeeff, Director of GMEDA County DATE: February 28, 1995 " SUBJECT: APPROVE RATE INCREASE FOR RICHMOND SANITARY SERVICES CONSISTENT WITH RATE INCREASE APPROVED BY CITY OF RICHMOND SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Approve 1.86% rate increase, consistent with the rate increase authorized by the City of Richmond, for Richmond Sanitary Services, effective March 1, 1995 for waste and recyclables collection services in the unincorporated areas of West County, namely, EI Sobrante, Montalvin Manor, Tara Hills, and North Richmond. FISCAL IMPACT: None to the County General Fund. BACKGROUND/REASONS FOR RECOMMENDATION: Under the terms of the Waste Collection Franchise between the County and Richmond Sanitary Services (RSS), RSS is allowed to request a rate increase based upon indexing (i.e., a CPI adjustment). Because the County and the City of Richmond utilize the same Rate Review Procedural Guide and Model prepared by Barakat & Chamberlin with minor modifications for County considerations, the County has relied on the rate review and determination of the City of Richmond prior to acting on a rate increase in the unincorporated areas of West County. RSS' original rate increase to both the City of Richmond and the County requested a 1.55% rate increase effective January 1, 1995. During December and January the City of Richmond considered and completed its rate review; the result of the City's rate review was to delay the rate increase which results in a 1.86% rate increase beginning March 1at. Staff review of the City's action and of the request by RSS results in the recommendation to approve the rate increase in the same manner as approved by the City of Richmond. CONTINUED ON ATTACHMENT: X YES SIGNATURE �( ACTION OF BOARD ON dr / 9S APPROVED AS RECOMMENDED _ OTHER VOTE OF SUPERVISORS UNANIMOUS (ABSENT AYES: NOES: ABSENT: ABSTAIN: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Louise Aiello (510/646-1550) ATTESTED aF /y5i� cc: GMEDA PHIL BATCHELOR, CLERK OF THE Community Development Department BOARD OF SUPERVISORS AND Dennis Varni, RSS (via CDD) COUNTY ADMINISTRATOR VA:LA:rw BY: , DEPUTY 838t:rssrate.BOD RLA1:rs9rate.B0D Approve rate increase for Richmond Sanitary Services February 28, 1995 Page 2 BACKGROUND/REASONS FOR RECOMMENDATION (continued): The increase in service will be as follows. The current mini can rate is $14.46; the increased mini can rate will be $14.66. The current one can rate is $17.46; the new one can rate will be $17.75. The current multiple can rate is $14.12 per can; the new rate will be $14.35 per can. For both the City of Richmond and the County rate structures, an additional $2.02 is charged for closure of the West Contra Costa Sanitary Landfill. (The dollar amounts listed above differ from the attached letter from RSS due to that fact that the rates shown in the letter reflect a January let effective date rather than the March 18t effective date approved by the City of Richmond and recommended in this Board Order.) RSS' letter and indexing are attached for review (Attachment A). The April 1994 Board Order which established the existing rates is attached for review (Attachment B). 839warate.BOD RLA1:rs8rate.B0D ATTACHMENT A RICHMOND SANITARY SERVICE ® 3260 BLUME DRIVE • RICHMOND, CALIFORNIA 94806 December 1, 1994 Ms. Louise Aiello County Solid Waste Program Manager Contra Costa County Department of Community Development 651 Pine Street, 4th Floor, North Wing Martinez, CA 94553 Dear Ms. Aiello: Enclosed please find Richmond Sanitary Services' s (RSS) 1995 Indexed-Year Rate Application to Contra Costa County, pursuant to our Franchise Agreement dated October 12, 1993 . The Application is prepared in accordance with the Barakat and Chamberlin' s 1990 Rate Review Procedural Guide (the "Guide") , as amended by agreement between Contra Costa County and RSS. The application requests an increase of 1.431 in residential rates . This increase is computed in accordance with Section V of the "Guide" (Establishing Indexed-Year Rates) . SU)01ARY OF RESIDENTIAL RATES: New Rate New Rate with effective Regulatory Rate Current Jan. 1, 1995* Surcharge 1st Can $17 .46 $17 . 69 $19 .71 Mini-can 14 .46 14 . 64 16 . 66 Multiple Cans 14 . 12 14 . 30 16 .32 *The increase has been computed excluding retroactivity of $1 . 67 included in the current per can rate. I look forward to answering any questions that you may have regarding this rate change. 'ncerely, Dennis J. Va ni Chief Fina ial Officer MAILING ADDRESS: P.O. BOX 4100, RICHMOND, CA 94804-0100 DEPARTMENTS: AREA CODE (510) ADMINISTRATION 262.1640 • ENGINEERING 262-1660 ACCOUNTING 262-1680 FAX 223-1591 199.3 RESID & COMM'L REVENUES 8,811,930 RATE INCREASE APPROVED FOR 1993 '6.49% ADJUSTED 1993 RESID & COMM'L REVENUES 8,274,617 1992 RESID & COMM'L REVENUES 7,018,639 1992 RETRO FOR 6 MOS 943,727 ADJUSTED 1992 RESID & COMM'L REVENUES 7,962,366 REVENUE GROWTH 3.92% x 10% 0,10 0.39% DEPRECIATION EXPENSE RESID 48.75% x 806,402 393,121 COMM'L 56.48% x 271,761 153,491 PROJECTED 1995 DEPR EXP 546,612 1994 DEPR EXP 532,869 % INCREASE 2.58% RICHMOND SANITARY SERVICE INDEX YEAR RATE INCREASE EFFECTIVE JANUARY 1, 1995 COMPOSITE % OF COST EXPLANTION 1994 CITY OF RICHMOND EXPENSES EXPENSES FACTOR INDEX OF FACTOR 41.56% 1.98% 0.82% CPI-U ALL ITEMS SALARIES &WAGES .$2,794,402 35.72% 1.78% 0.64% CPI-U x 90% EMPLOYEE BENEFITS 772,169 PAYROLL TAXES 246,972 TRUCK EXPENSE 307,346 3.93% 4.76% 0.19% CPI-U GASOLINE INSURANCE 487,751 FRANCHISE FEES 417,328 TAXES & LICENSES 99,472 DEPRECIATION 532,869 6.81% 2.58% 0.18% ANTICIPATED % CHANGE GARAGE & RECYCLING FACILITIES 291,074 OFFICE EXPENSE 290,778 PROFESSIONAL SERVICES 233,079 ADVERTISING 27,537 DUES & SUBSCRIPTIONS 11,507 UTILITIES 73,353 BAD DEBT EXPENSE 20,646 INTEREST EXPENSE 0 RECYCLING EXPENSE 25,446 MANAGEMENT FEES-1/C 97,561 MISC EXPENSE 128,992 RETURNED COUPON EXPENSE (119,605) STATE & COUNTY FEES 189,209 LANDFILL TIPPING FEE-I/C 936,834 11.98% 0.00% 0.00% ANTICIPATED % CHANGE EQUIPMENT RENTAL 1,466 adjustment for variable expenses (43,472) TOTAL EXPENSES $7,822,714 100.00% -0.39% REVENUE GROWTH x 10% 1.43% Consumer Price Index All Urban Consumers (CPI-U), 1982-84 = 100 San Francisco/Oakland/San Jose Metropolitan Area SOURCE; United States Department of Labor, Bureau of Labor Statistics All Items Gasoline September 1994 149.4 September 1994 110.0 September 1993 146.5 September 1993 105:0 percent change 1.98% percent change 4.76% ATTACHMENT B � 6COOLM ContraTO: BOARD OF SUPERVISORS FROM: VALENTIN ALEXEEFF, GMEDA DIRECTOR DATE: APRIL 12, 1994 SUBJECT: APPROVE RATE INCREASE OF $1.36 FOR RICHMOND SANITARY SERVICES AND NEW SERVICES FOR RESIDENTS IN UNINCORPORATED AREAS OF WEST COUNTY SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Approve $1.36 solid waste collection rate increase for Richmond Sanitary Services, Inc. (RSS) for the unincorporated areas of West County, namely, El Sobrante, Montalvin Manor, Tara Hills, and North Richmond; and Approve the mini-can program for residents in these areas and a bulky item collection program for residents West of Interstate 80. FISCAL IMPACT None to the . County General Fund. BACKGROUND/REASONS FOR RECOMMENDATIONS In February, 1993 , the Board of Supervisors authorized an interim rate increase for Richmond Sanitary Services consietent with the rate increase approved by the cities of Richmond and San Pablo. That rate increase was the first rate increase for solid waste collection that RSS had been allowed since 1989. The current rate is $16. 10 plus $2.02 per can for the ultimate closure of the West County landfill. The increase of $1. 36 per can is being allowed based upon a review of the rate application materials submitted by RSS last year and this year, a review of the Barakat & Chamberlain analysis performed recently for the City of Richmond which allowed the County to avoid the expense for a separate rate review, and in consideration of the additional programs being added for residents. The new rate is only $.40 higher than the rate recently established by the City of Richmond. While Richmond dropped a number of programs, the County and RSS agreed to add two new programs mini-can service and bulky item collection. CONTINUED ON ATTACHMENT: YES SIGNATURE ACTION OF BOARD ON .I?/,:I I9 1920 APPROVED AS RECOMMENDEDy OTH TE VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A jZf'*VNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON ��T��HE DATE SHOWN. Contact: Louise Aiello (S10/646-ISSO) ATTESTED 6Wj' [q. 149 cc: Community Development Department (CDD) iHILIzATcHELOR, CLERK OF Richmond Sanitary Service, Inc. (via cDb) THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY iYaI,.,1w � , DEPUTY LA:gins 939uk1 k3U.lna.RSS