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Home My WebLink AboutMINUTES - 04191994 - 2.5 _ 2.5 f .....+_ Contra TO: [ ir` BOARD OF SUPERVISORS WJIa ...:a FROM: VALENTIN ALEXEEFF, GMEDA DIRECTORu 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 RECOMMENDATIONS) & 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, E1 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 consistent 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 canis 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 V ACTION OF BOARD ON J42,hif19. 19 9V- APPROVED AS RECOMMENJF DEDy OTHE VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS L, UNANIMOUS (ABSENT 1 TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON TH ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Louise Aiello (510/646-1550) ATTESTED cc: Community Development Department (CDD) PHIL BATCHE OR, CLERK OF Richmond Sanitary Service, Inc. (via CDD) THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY �Alli�s ► t , DEPU Y LA:gms 939u\bo\Rate[ner.RSS , RICHMOND SANITARY SERVICE ? ® 3260 BLUME DRIVE RICHMOND, CALIFORNIA 94806 March 18, 1994 Louise Aiello County Solid Waste Program Manager Contra Costa County Department of Community Development 651 Pine Street 4th Floor, North Wing Martinez , California 94553 Re: Richmond Sanitary Service Rate Adjustment Dear Ms. Aiello: Enclosed please find Richmond Sanitary Service' s (RSS) Rate Adjustment Application which has been modified in accordance with the direction. provided by Contra Costa County. The enclosed . Application includes the following modifications and additions . from our previous application which have been implemented at the request of the County: 1. Adjustment to the timing of recovery of retroactive components of the rate (eg. $0 . 66 extended through June, 1998 , $1. 57 extended through May, 2000, and $0. 10 over prior retro period with respect to January through April, 1994) . 2 . Analysis of the cost (largely in avoided revenue,) of the implementation of the Mini-Can Program throughout the Franchise area together with rate implications arising from the -costs. 3 . Inclusion of Bulky Item Collection Program for residences west of I-80 at a cost of $0. 05 per can. The enclosed Rate Adjustment Application is predicated upon the Barakat and Chamberlain rate setting methodology as amended by agreement between Contra Costa County and RSS, with the exception of the jurisdictional allocation methodology. Their visions to the methodology are referenced in our previous correspondence and we have incorporated those changes in methodology in the calculation of rates in the enclosed Application. 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 Louise Aiello Page 2 March 18, 1994 RSS and the County have agreed that RSS will not utilize the precise formula for jurisdictional allocation in this rate setting procedure. The County has agreed that the Barakat and Chamberlain methodology allows RSS to seek a rate based upon the actual allocation of residential and commercial revenues within the franchise area in the event that any three of the cities of Richmond, Pinole, San Pablo, and Hercules reject the regional allocation upon which the Contra Costa rate is based. In any event, RSS does not waive its right to the jurisdictional allocation of residential and commercial revenue as provided in the Barakat and Chamberlain rate setting methodology and the County acknowledges that right. The County has received a copy of the report prepared by the City of Richmond's consultants, Barakat and Chamberlain, regarding RSS. RSS is extremely proud that its costs were found to be reasonable and that its rates were found to be fair after exacting scrutiny' before an extremely interested Richmond staff and City Council. The County was also given copies of the results of the poll of Richmond residents performed by Richmond showing that there is overwhelming customer satisfaction with RSS in its service area. RSS is particularly proud of the poll results in light of the extreme attention focused on garbage service and. garbage rates in Richmond in the last election campaign. This Application results from the methodology, as described above, which is most beneficial to residential rate payers in the unincorporated areas of West County. The Application is fair to the ratepayers of Contra Costa County and provides a reasonable return to RSS. The costs which will be covered by the rate have been analyzed and approved by outside consultants working for the City of Richmond and the West Contra Costa Integrated Waste Management Authority. The County has demanded certain revisions to the Barakat and Chamberlain rate setting methodology in order to conform the methodology to its other rate setting programs and those changes have been implemented as requested. At the request of the County, RSS has not pressed the issue of jurisdictional allocation which would increase the basic rate to account for differences between franchised cities (and the County) with respect to the impact of the subsidy of residential rates by commercial revenue. \DOC\R0004029\95397 i y Louise Aiello Page 3 March 18, 1994 Please let me know if you require further information regarding the enclosed Application. Thank you for your courtesy and cooperation in these proceedings. i ruly y urs, N S ITARY SERVICE J. ARNI CHIEF FINANCIAL OFFICER DJV/dlj Enclosure cc: Richard Granzella Richard E. Norris \DOC\R0004029\95397 RATE INCREASE SUMMARY Richmond Sanitary Service CONTRA COSTA COUNTY March 18, 1994 Unincorporated West Contra Costa County Can Analysis Single cans (not seniors) 7,798 Senior cans 1,103 Multiple cans 1,485 Total can units 10,386 1994 Rate Application Summary with Requested Adjustments and Options 6.3% with subsidized Current Base Base with with bulky item Rate Increase Rate Mini-can 1994 retro collection First can rate $16.10 $1.01 $17.11 $17.31 $17.41 $17.46 Senior can rate $14.70 $0.93 $15.63 n/a n/a .n/a Multiple can rate $13.14 $0.83 $13.97 $13.97 $14.07 ' $14.12 Mini-can rate n/a n/a n/a $14.31 $14.41 $14.46 RICHMOND SANITARY SERVICE Contra Costa County 1994 Rate Application March 18, 1994 RICHMOND SANITARY SERVICE RATE APPLICATION TABLE OF CONTENTS DESCRIPTION PAGE CONTRA COSTA COUNTY RATE INCREASE SUMMARY 1-3 ESCALATORS 1994 4 DIVISIONAL ALLOCATION 1992 5-6 CLASS ALLOCATION FACTORS 1992 7 JURISDICTIONAL ALLOCATION FACTORS 8 1992 - 1994 RESIDENTIAL AND COMMERCIAL RATE BASIS 9-22 COMPARATIVE RATE SCHEDULES 23-24 Cr r RICHMOND SANITARY SERVICE �. CONTRA COSTA COUNTY INCOME STATEMENT SUMMARY 1992 1993 .1994 ACTUAL PROJECTED FORECASTED RATE ACTUAL CHANGE RATE NOTES (A) (B) (C) (D) (E) ----------- ------------ -------------- -------------- ------ REVENUES: RESIDENTIAL 1,315,266 1,6711763 59,888 1,731,651 1 COMMERCIAL 453,084 505,023 (17,676) 487,347 1 TOTAL OTHER 144,756 131,289 0 131,289 ----------- ----------- ------------- ------------- TOTAL REVENUE 1,913;106 2,308,075 42,212 2,350,287 EXPENSES SALARIES & BENEFITS 1,012,339 1,056,967 36,595 1,093,562 2 TRUCK EXPENSE 78,165 89,881 8,058 97,939 3 INSURANCE 133,186 127,419 5,097 132,516 TAXES & LICENSES 29,248 . 25,213 1,009 26,221 . DEPRECIATION 20,130 19,902 0 19,902 GARAGE & RECYCLING FACILITIES 79,945 92,660 3,706 96,366 OFFICE EXPENSE 72,449 78,376 3,135 81,511' PROFESSIONAL SERVICES 51,432 61,573 2,463 64,036 GENERAL & ADMIN 88,339 93,550 3,742 97,292 LANDFILL DISPOSAL & FEES 291,681 289,136 8,117 297,253 4 EQUIPMENT RENTAL 248,305 235,660 9,426 245,086 PROMO & CONTRIB 0 0 0 0 5 STATE INCOME TAX 0 0 0 0 5 adjustment for variable expenses 0 0 (10,884) (10,884) 6 ------ ----------- ------------- ------------- TOTAL EXPENSES 2,105,219 . 2,170,336 70,464 2,240,800 ----------- ----------- ------------- ------------- NET INCOME (192,113) 137,739 (28,252) 109,487 ---- ----- ----------o ------------- ------------- OPERATING RATIO 110.04% 94.03% 95.34% TARGET OPERATING RATIO 90.00% 88.00% 90.00% REQUIRED REVENUE LEVEL 2,339,132 2,466,291 2,489,778 REVENUE DEFICIENCY(SURPLUS) 426,026 158,216 139,491 INCREASE REQUIRED (%) 24.09% 7.27% 6.29% Contra Costa County Rate Application Page 1 March 18, 1994 ( RICHOND SANITARY SERVICE STATEMENT OF INCOME NOTES The information that follows explains the columns and rows on page 1. COLUMNS ------------- (A) 1992 ACTUAL RATE - This column shows The County's share of Richmond Sanitary Services 1992 audited financial information that has been rate adjusted pursuant to the Barakat & Chamberlin Methodology. See spreadsheets that follow for additional detail. (B) 1993 PROJECTED ACTUAL - This column shows The County's share of Richmond Sanitary Services 1993 projected income and expenses that has been rate adjusted pursuant to the Barakat & Chamberlin Methodology: See spreadsheets that follow for additional detail. (C) CHANGE - This column represents the change between Forecasted 1994 (D) and Projected 1993 (B) . (D) 1994 FORECASTED RATE - This column is derived from the projected 1993 totals escalated by the factors on page 4. ROWS ------------- 1. The change between 1993 and 1994 reflects a rate change on March 1, 1993 and represents a 3.5% reduction in forecasted revenue. The Company has experienced a loss of 500 residential cans (primarily second cans) from 1992 to 1993. This represents a decrease of approximately 4.5% .Residential recycling programs and higher costs have been the primary cause of the decrease, and the Company believes this trend will continue. Additionally, from December 1992 to July 1993, the Company has experienced a 9.9% decrease in revenue from commercial accounts and. a 4.6% decrease in apartment containers. The company expects this trend to continue. 2. The change in salaries and benefits is due to escalation of 1993 data. No headcount increases are anticipated. See table on page 4. 3. The increase in truck expense is due to the increase of fuel cost. The' escalator. on page 4 represents U.S. Department of Labor CPI-U plus an increase for the new federal gasoline tax of $0.043 cents per gallon beginning October 1993. J Contra Costa County Rate Application Page 2 March 18; 199,4 RICHOND SANITARY SERVICE STATEMENT OF INCOME NOTES 4. The increase in landfill expense is due to the increase of the County Household Hazardous Waste Fee from $0.41 to $2.12 per ton effective July, 1993. 5. Promotion, contributions and income taxes are not allowed expenses pursuant to the Barakat & Chamberlin Methodology. 6. This is a .5% adjustment to decrease variable expenses representing cost savings to the Company from lower projected revenue. Note - All increases not specifically described above are based on 1993 figures escalated by the amounts show on the table on page 4. l Contra Costa County Rate Application Pape 3 March 18, 1994 RICHMOND SANITARY SERVICE ESCALATORS 1994 ESCALATORS 1 GENERAL 1.040 2 OFFICE WAGES 1.040 3 UNION WAGES 1.030 4 HEALTH /WELFARE 1.060 5 PENSION 1.040 6 WORKERS COMPENSATION 1.040 7 FUEL 1.220 8 DISPOSAL 1.000 1 The general escalator.represents the anticipated inflation rate. 2 The office wage escalator is based on historical wage increases. 3 The union escalator is based on the current union contracts. 4 The health and welfare escalator represents an average of the union specified increases and the Company's self-insurance plan. 5 The pension escalator is based on the Company's union contracts. 6 . The workers compensation escalator is based on current workers compensation trends. 7 The fuel escalator is based on the CPI-U for motor fuel, motor oil and other products. 8 Disposal tonnage is fixed at $20 per ton. Contra Costa County Rate Application Page 4 March 18, 1994 RICHMOND SANITARY SERVICES DIVISIONAL ALLOCATION 1992 AUDITED TOTAL FINANCIALS ALLOC. RESIDENTIAL .12/31/92 METHOD INDUSTRIAL RESIDENTIAL COMMERCIAL & COMMERCIAL ------------ ----------- ------------ ------------ ------------ ------------ REVENUES: RESIDENTIAL RICHMOND 3,825,267 3,825,267 3,825,267 SAN PABLO 828,742 828,742 828,742 COUNTY 1,315,266 1,315,266 1,315,266 PINOLE 867,302 867,302 867,302 HERCULES 734,242 734,242 734,242 --- -------- 7,570,819 7,570,819 7,570 819 COMMERCIAL RICHMOND 3,193,372 3,193,372 3,193,372 SAN PABLO 1,072,953 1,072,953 1,072,953 COUNTY 453,084 453,084 453,084 PINOLE 700,205 700,205 700,205 HERCULES 339,185 339,185. 339,185 ------------ ------------ ------------ 5,758,799 5,758,799 5,758,799 INDUSTRIAL 4,210,458 4,210,458 SUBTOTAL 17,540,076 4,210,458 7,570,819 5,758,799 13,329,618 RETROACTIVE CHARGES 535,787 0 279,547 256,240 535,787 CLOSURE.SURCHARGE 3,010,544 1,279,508 1,381,467 349,569 1,731,036 SALE OF CURBSIDE RECYC 622,315 0. 622,315 0 622,315 OTHER 456,830 82,890 160,757 213,183 373,940 ------------ -r---------- ------------ ------------ ------------ 4,625,476 1,362,398 2,444,086 818,992 3,263,078 TOTAL REVENUE 22,165,552 5,572,856 10,014,905 6,577,791 16,592,696 EXPENSES ALLOCATED ON REVENUE 24.00% 43.16% 32.83% 76.00% EXPENSES: SALARIES & WAGES 6,037,895 WAGE 797,151 4,699,060 541,684 5,240,744 EMPLOYEE BENEFITS 1,512,275 WAGE 199,658 1,176,945 135,672 1,312,617 PAYROLL TAXES 476,822 WAGE 62,952 371,092 42,778 413,870 ------------ -------=---- ------------ ------------ ------------ TOTAL SALARIES & WAGES 8,026,992 1,059,761 6,247,097 720,134 6,967,231 TRUCK EXPENSE 696,178 TRUCK 158,222 464,119 73,837 537,956 INSURANCE 1,056,052 WAGE 139,425 821,884 94,743 916,627 FRANCHISE FEES 905,064 ACTUAL 515,884 389,180 905,064 TAXES & LICENSES 228,500 REVENUE 54,851 98,627 75,022 173,649. ---------- ------------ ------------ ------------ ------------ TOTAL TAXES & LICENSES 1,133,564 54,851 614,511 464,202 1,078,713 DEPRECIATION 155,764 DEPRECIATION 17,225 116,032 22,507 138,539 GARAGE & RECYCLING FACILITI 642,513 TRUCK/RECYC 92,310 507,125 43,078 550,203 OFFICE EXPENSE 540,892 OFFICE 42,276 414;684 83,932 498,616 PROFESSIONAL'SERVICES 465,784 REVENUE 111,810 201,046 152,927 353,974 l` ADVERTISING 44,060 REVENUE 10,577 19,018 14,466 33,483 DUES &SUBSCRIPTIONS 26,875 REVENUE 6,451 11,600 8,824 20,424 UTILITIES 146,959 OFFICE 11,486 112,669 22,804 135,473 Contra Costa County Rate Application Page 5 March 18, 1994 • RICHMOND SANITARY SERVICES DIVISIONAL ALLOCATION 1992 AUDITED TOTAL' FINANCIALS ALLOC. RESIDENTIAL 12/31/92 METHOD INDUSTRIAL RESIDENTIAL COMMERCIAL & COMMERCIAL ------------ ----------- ------------ ------------ ------------ ------------ BAD DEBT EXPENSE (5,700)REVENUE (1,368) (2,460). (1,871) (4,332) INTEREST EXPENSE 29 REVENUE 7 13 10 22 RECYCLING EXPENSE 68,227 RECYCLING 0 68,227 0 68,227 MANAGEMENT FEES-I/C 197,088 REVENUE 47,311 85,069 64,708 149,777 MISC EXPENSE 269,654 REVENUE 64,730 116,391 88,533 204,924 ------------ ------------ ------------ ------------ ------------ TOTAL GENERAL & ADMIN 747,192 139,193 410,525 197,474 607,999 LANDFILL CLOSURE SURCHARGE 3,010,544 ACTUAL 1,279,508 1,381,467 349,569 1,731,036 RETURNED COUPON EXPENSE 17,241 ACTUAL 0 17,241 - 0 17,241 STATE & COUNTY FEES 343,729 TONS 118,243 170,833 54,653 225,486 LANDFILL TIPPING FEE-I/C 5,432,790 TONS 1,868,880 2,700,097 863,814 3,563,910 TOTAL LANDFILL DISPOSAL ------------ ---- ----- ------------ ------------ ------------ & REGULATORY FEES 5,793,760 1,987,123 2,888,171 . 918,467 3,806,637 TRUCK RENTAL-I/C 1,149,384 LSETK 59,937 929,012 160,435 1,089,447 RECYCLING EQUIPMENT RENTAL- 133,573 LSERECYC 0 133,573 0 133,573 SHOP EQUIPMENT RENTAL-I/C -4,104 LSESHOP 933 2,736 435 3,171 CONTAINER RENTAL-I/C 565,301 LSECONT 295,826 62,296 207,179 269,475 TOTER RENTAL-I/C 123,179 LSETOT 0 123,179 0 123,179 EQUIPMENT RENTAL 1,721 REVENUE 413 743 565 1,308 ------------ ------------ ------------ ------------ ------------ TOTAL EQUIPMENT RENTAL 1,977,262 357,109 1,251,539 368,614 1,620,153 CONTRIBUTIONS 53,422 REVENUE 12,824 23,059 17,540 40,598 PROMOTIONS 89,128 REVENUE 21,395 38,470 29,263 67,733 ------------ ------------ ------------ ------------ ------------ TOTAL PROMO & CONTRIB 142,550 34,219 61,529 46,802 108,331 STATE INCOME TAXES 10,800 REVENUE 2,593 4,662 3,546 8,207 ............ ------------ ............ ------------ ------------ TOTAL EXPENSES 24,399,847 5,475,623 15,384,392 3,539,832 18,924,224 NET INCOME (2,234,295) 97,233 (5,369,486) 3,037,958 (2,331.,528) J Contra Costa County Rate Application Page 6 March 18, 1994 RICHMOND SANTIARY SERVICE, INC. RATE APPLICATION CLASS ALLOCATION FACTORS - 1992 RESIDENTIAL COMMERCIAL INDUSTRIAL TOTAL 1 REV $7,570,819 $5,758,799 $4,210,458 $17,540,076 2 OFFC 31 6 3 41 3 TK 44 7 15 66 4 TONS 62,280 20,000 43,224 125,504 5 WAGE $4,743,498 $546,807 $804,689 $6;094,994 6 LSETK $929,012 $160,435 $59,937 $1,149,384 7 LSERECY $133,573 $0 $0 $133,573 8 LSESHOP $2,736 $435 $933 $4,104 9 LSECONT $62,296 $207,179 $295,826 $565,301 10 LSETOT $123,179 $0 $0 $123,179 11 DEPR $116,032 $22,507 $17,225 $155,764 PERCENTAGES RESIDENTIAL COMMERCIAL INDUSTRIAL TOTAL 1 REV 43.16% 32.83% 24.00% 100.00% 2 OFFC 76.67% 15.52% 7.82% 100.00°x6 3 TK 66.67% 10.61% 22.73% 100.00% 4 TONS 49.62% 15.94% 34.44% 100.00% 5 WAGE 77.83% 8.97% 13.20% 100.00% 6 LSETK 80.83% 13.96% 5.21% 100.00% 7 LSERECY 100:00% 0.00% 0.00% 100.00% 8 LSESHOP 66.67% 10.60% 22.73% 100.00% 9 LSECONT 11.02% 36.65% 52.33% 100.00% 10 LSETOT 100.00% 0.00°x6 0.00% 100.00% 11 DEPR 74.49% 14.45% 11.06% 100.00% 1 REVENUES - From most current audited financial statements, excluding closure surcharge receipts. 2 OFFICE EMPLOYEES - Number of office employees including office personnel, supervisors and management. 3 TRUCKS - Number of garbage, box and front-end loader trucks. 4 TONS - Total tons. 5 WAGES - Wages paid for employees of RSS. 6 LEASE TRUCKS - Lease costs for trucks. 7 LEASE RECY EQUIP - Lease costs for recycling division equipment. 8 LEASE SHOP EQUIP - Lease costs for shop equipment. 9 LEASE CONTAINERS - Lease costs for containers. 10 LEASE TOTERS Lease costs for toters. 11 DEPRECIATION - Depreciation expense for owned assets. Contra Costa County Rate Application Page 7 March 18, 1994 RICHMOND SANITARY SERVICE, INC. RATE APPLICATION r JURISDICTIONAL ALLOCATION FACTORS RICHMOND SAN PABLO COUNTY PINOLE HERCULES 51.33% 13.47% 14.53% 12.43% 8.24% Note: The jurisdictional allocation factors above were developed in the first rate-making process developed by Barakat & Chamberlin, Inc. Contra Costa County Rate Application Page 8 March 18, 1994, 1 C 1992 RESIDENTIAL AND COMMERCIAL RATE BASIS Contra Costa County Rate Application Page 9 March 18, 1994 RICHMOND SANITARY SERVICE TOTAL COMPANY 1992 RATE BASIS ` AUDITED ADJUSTED AUDITED ADJUSTED RESIDENTIAL RATE RESIDENTIAL COMMERCIAL RATE COMMERCIAL 12/31/92 ADJUSTMENTS 12/31/92 12/31/92 ADJUSTMENTS 12/31/92 ------------ ------ ------------ ------------ ------------ ------------ REVENUES: RESIDENTIAL RICHMOND 3,825,267 3,825,267 SAN PABLO 828,742 828,742 COUNTY 1,315,266 1,315,266 PINOLE 867,302 867,302 HERCULES 734,242 734,242 ------------ ----------- ------------ 7,570,819 0 7,570,819 COMMERCIAL RICHMOND 3,193,372 3,193,372 " SAN PABLO 1,072,953 1,072,953 COUNTY 453,084 453,084 PINOLE 700,205 700,205 HERCULES 339,185 339,185 ------------ ------------ ------------ 5,758,799 0 5,758,799 RETROACTIVE CHARGES 279,547 (279,547) 0 256,240 (256,240) 0 CLOSURE SURCHARGE 1,381,467 (1,381,467) 0 349,569 (349,569) 0 SALE OF CURBSIDE RECYC .622,315 622,315 0 0 OTHER 160,757 160,757 213,183 213,183 ------------ ----------- ------------ ------------ ------------ ------------ 2,444,086 (1,661,014) 783,072 818,992 (605,809) 213,183 ------- ----------- ------------ ------------ ------------ (' TOTAL REVENUE 10,014,905 (1,661,014) 8,353,891 6,577,791 (605,809) 5,971,982 . EXPENSES: SALARIES & WAGES 4,699,060 4,699,060 541,684 541,684 EMPLOYEE BENEFITS 1,176,945 1,176,945 135,672 135,672 PAYROLL TAXES 371,092 371,092 42,778 42,778 ------ ----------- ------------ ------------ ------------ ------------ TOTAL SALARIES & WAGES 6,247,097 0 6,247,097 720,134 0 720,134 TRUCK EXPENSE 464,119 464,119 73,837 73,837 INSURANCE 821,884 821,884 94,743 94,743 FRANCHISE FEES 515,884 515,884 389,180 389,180 TAXES & LICENSES 98,627 98,627 75,022 75,022 ------------ ----------- ------------ ------------ ------------ ------------ "TOTAL TAXES & LICENSES 614,511 0 614,511 464,202 0 464,202 DEPRECIATION 116,032 116,032 22,507 22,507 GARAGE & RECYCLING FACILITI 507,125 507,125 43,078 43,078 OFFICE EXPENSE 414,684 414,684 83,932 83,932 PROFESSIONAL SERVICES 201,046 201,046 152,927 152,927 ADVERTISING 19,018 19,018 14,466 14,466 DUES- & SUBSCRIPTIONS 11,600 11,600 8,824 8,824 UTILITIES 112,669 112,669 22,804 22,804 BAD DEBT EXPENSE (2,460) (2,460) (1,871) (1,871) INTEREST EXPENSE 13 (13) 0 10 (10) 0 RECYCLING EXPENSE 68,227 68,227 0 0 MANAGEMENT FEES-I/C 85,069 85,069 64,708 64,708 MISC EXPENSE 116 ,391 116,391 88,533 88,533 -- --------- ------------ TOTAL GENERAL& ADMIN 410,525 (13) 410,513 197,474 (10) 197,464 Contra Costa County Rate Application Page 10 March 18, 1994 RICHMOND SANITARY SERVICE TOTAL COMPANY t 1992 RATE BASIS AUDITED ADJUSTED AUDITED ADJUSTED RESIDENTIAL RATE RESIDENTIAL COMMERCIAL RATE COMMERCIAL .12/31/92 ADJUSTMENTS 12/31/92 12/31/92 ADJUSTMENTS 12/31/92 ------------ ----------- ------------ ------------ ------------ ------------ LANDFILL CLOSURE SURCHARGE 1,381,467 (1,381,467) 0 349,569 (349,569) .0 RETURNED COUPON EXPENSE 17,241 17,241 0 0 STATE & COUNTY.FEES 170,833 170,833 54,653 54,653 LANDFILL TIPPING FEE-I/C 2,700,097 (1,350,048) 1,350,048 863,814 (431,907) 431,907 TOTAL LANDFILL DISPOSAL ------------ ----------- ------- ----------- ------------S ------------ & REGULATORY FEE2,888,171 (1,350,048) 1,538,123 918,467 (431,907) 486,560 TRUCK RENTAL-I/C 929,012. 929,012 160,435 160,435 RECYCLING EQUIPMENT RENTAL- 133,573 133,573 0 0 SHOP EQUIPMENT RENTAL-I/C 2,736 2,736 435 435 CONTAINER RENTAL-I/C 62,296 62,296 207,179 207,179 TOTER RENTAL-I/C 123,179 123,179 0 0 EQUIPMENT RENTAL 743 743 565 565 ------------ ----------- ------------ ------------ ------------ ------------ TOTAL EQUIPMENT RENTAL 1,251,539 0 1,251,539 368,614 0 368,614 CONTRIBUTIONS 23,058 (23,058) 0 17,540 (17,540) 0 PROMOTIONS 38,470 (38,470) 0 29,263 (29,263) 0 ------------ ----------- --------- ------------ ------------ ------------ TOTAL PROMO & CONTRIB 61,528 (61,528) 0 46,802 (46,802) 0 STATE INCOME TAXES 4,662 (4,662) 0 3,546 (3,546) 0 ------------ ----------- ------------ ------------ ------------ ------------ TOTAL EXPENSES 15,384,391 (2,797,718) 12,586,673 3,539,832 (831,834) 2,707,999 ------------- �<. NET INCOME (5,369,486) 1,136,704 (4,232,782) 3,037,958 226,025 3,263,983 i\ Contra Costa County Rate Application Page 11 March 18, 1994 RICHMOND SANITARY SERVICE CONTRA COSTA COUNTY ALLOCATION 1992 RATE BASIS 14.53% 14.53% COUNTY ADJUSTED COUNTY ADJUSTED RESIDENTIAL RATE RESIDENTIAL COMMERCIAL RATE COMMERCIAL 12/31/92 ADJUSTMENTS 12/31/92 . 12/31/92 ADJUSTMENTS 12/31/92 ------------ ----------- ------------ ------------ ------------ ------------ REVENUES: RESIDENTIAL COUNTY 1,315,266 1,315,266 COMMERCIAL COUNTY 0 453,084 453,084 SALE OF CURBSIDE RECYC 90,422 90,422 0 0 OTHER 23,358 23,358 30,975 30,975 ------------ ----------- ------------ ------------ ------------ ------------ 113,780 0 113,780 30,975 0 30,975 ------------ ----------- ------------ ------------ ------------ ------------ TOTAL REVENUE 1,429,046 0 1,429,046 484,059 0 484,059 ------------ ----------- ------------ ------------ ------------ ----------- EXPENSES SALARIES & WAGES 682,773 682,773 78,707 78,707 EMPLOYEE BENEFITS 171,010 171,010 19,713 19,713 PAYROLL TAXES 53,920 53,920 6,216. 6,216 ------------ ----------- ------------ ------------ ------------ ------------ TOTAL SALARIES & WAGES 907,703 0 907,703 104,636 0 104,636 TRUCK EXPENSE 67,436 67,436 10,729 10,729 INSURANCE 119,420 119,420 13,766 13,766 FRANCHISE FEES 2,988 2,988 1,029 1,029 TAXES & LICENSES 14,331 14,331 10,901 10,901 ------------ ----------- ------ ------------ ------------ ------------ TOTAL TAXES & LICENSES 17,318 0 17,318 11,930 0 11,930 DEPRECIATION 16,859 16,859 3,270 3,270 GARAGE & RECYCLING FACILITI 73,685 73,685 6,259 6,259 OFFICE EXPENSE 60,254 60,254 12,195 12.,195 PROFESSIONAL SERVICES 29,212 29,212 22,220 22,220 ADVERTISING 2,763 2,763 2,102 2,102 DUES & SUBSCRIPTIONS 1,685 1,685 1,282 1,282 UTILITIES 16,371 16,371 3,313 3,313 BAD DEBT EXPENSE (357) (357) (272) (272) INTEREST EXPENSE 2 (2) 0 1 (1) 0 RECYCLING EXPENSE' 9,913 9,913 0 0 MANAGEMENT FEES-I/C 12,361 12,361 9,402 9,402 MISC EXPENSE 16,912 16,912 12,864 12,864 ------------ ----------- ------------ ------------ ------------ ------------ TOTAL GENERAL & ADMIN 59,649 (2) 59,647 28,693 (1) 28,692 LANDFILL CLOSURE SURCHARGE 0 0 0 0 . RETURNED COUPON EXPENSE 0 0 0 0 STATE & COUNTY FEES 24,822 24,822 7,941 7,941 LANDFILL TIPPING FEE-I/C 392,324 (196,162) 196,162 125,512 (62,756) 62,756 TOTAL LANDFILL DISPOSAL ------------ ----------- ------------ ------------ ------------ ------------ & REGULATORY FEES 417,146 (196,162) 220,984 133,453 (62,756) 70,697 TRUCK RENTAL-I/C 134,985 134,985 23,311 23,311 RECYCLING EQUIPMENT RENTAL- 19,408 19,408 0 0 SHOP EQUIPMENT RENTAL-I/C 398 398 63 63 Contra Costa County Rate Application Page 12 March 18, 1994 RICHMOND SANITARY SERVICE CONTRA. COSTA COUNTY ALLOCATION 1992 RATE BASIS ` 14.53% 14.53% COUNTY ADJUSTED COUNTY ADJUSTED RESIDENTIAL RATE RESIDENTIAL COMMERCIAL RATE COMMERCIAL 12/31/92 ADJUSTMENTS 12/31/92 12/31/92 ADJUSTMENTS 12/31/92 ------------ ----------- ------------ ------------ ------- CONTAINER RENTAL-I/C 9,052 9,052 30,103 30,103 EQUIPMENT RENTAL 30,903 30,903 82 82 '. ------------ ----------- ------------ ------------ ------------ ------------ TOTAL EQUIPMENT RENTAL 194,746 0 194,746 53,560 0 53,560 CONTRIBUTIONS 3,350 (3,350) 0 2,549 (2,549) 0 PROMOTIONS 5,590 (5,590) 0 4,252 (4,252) 0 ------------ ----------- ------------ ------------ ------------ ------------ TOTAL PROMO $ CONTRIS 8,940 (8,940) 0 6,800 (6,800) 0 STATE INCOME TAXES 677 (677) 0 515 (515) 0 ------------ ----------- ------------ ------------ ------------ ------------ TOTAL EXPENSES 1,973,047 (205,781) 1,767,265 408,027 (70,073) 337,954 ------------ ------------ ------------ ------------ NET INCOME (544,000) 205,781 (338,219) 76,033 70,073 146,106 Contra Costa County Rate Application Page 13 March 18, 1994 (' RICHMOND SANITARY SERVICE EXPLANATIONS OF RATEMAKING ADJUSTMENTS Y 1992 THIS SCHEDULE EXPLAINS THE RATEMAKING ADJUSTMENTS MADE FOR 1992 REMOVAL OF THE FOLLOWING UNALLOWED EXPENSES: CHARITABLE CONTRIBUTIONS $5,899 PROMOTIONS 9,842 INTEREST 3 INCOME TAXES 1,193 ADJUST DISPOSAL FEE TO SET RATE OF $20 PER TON 258,918 -------------- NET EXPENSES DISALLOWED $275,854 Contra Costa County Rate Application Page 14 March 18, 1994 C 1993 RESIDENTIAL AND COMMERCIAL RATE BASIS Contra Costa County Rate Application Page 15 March 18, 1994 RICHMOND SANITARY SERVICE CONTRA COSTA COUNTY ALLOCATION 1993 RATE BASIS ` 14.53% 14.53% COUNTY ADJUSTED COUNTY. ADJUSTED RESIDENTIAL RATE RESIDENTIAL COMMERCIAL RATE COMMERCIAL _ 12/31/93 ADJUSTMENTS 12/31/93 12/31/93 ADJUSTMENTS 12/31/93 ------------ ------------ ------------ ------------ ---------- ------------ REVENUES: RESIDENTIAL COUNTY 1,671,763 1,671,763 COMMERCIAL COUNTY 505,023 505,023 SALE OF CURBSIDE RECYC 127,386 127,386 0 OTHER 3,420 3,420 483 483 ------------ --------- ------------ ------------ ---------- ------------ 130,806 0 130,806 483 0 483 ------------ . ----------- ------------ ------------ --------- ------------ TOTAL REVENUE 1,802,570 0 11802,570 505,505 0 505,505 EXPENSES: SALARIES & WAGES 717,221 717,221 82,678 82,678 EMPLOYEE BENEFITS 172,576 172,576 19,894 19,894 PAYROLL TAXES 57,922 57,922 6,677 6,677 ------------ ------------ ------------ ------------ ---------- ------------ TOTAL SALARIES & WAGES 947,719 0 947,719 109,248 0 109,248 TRUCK EXPENSE 77,544 77,544 12,337 12,337 INSURANCE 114,249 114,249 13,170 13,170 FRANCHISE FEES 0 0 0 0 TAXES & LICENSES 14,320 14,320 10,893 10,893 -------=---- ------------ ------------ ------------ ---------- ------------ TOTAL TAXES & LICENSES 14,320 0 14,320 10,893 0 10,893 DEPRECIATION 16,669 16,669 3,233 3,233 GARAGE& RECYCLING FACILITIES 85,529 85,529 7,131 7,131 OFFICE EXPENSE 65,183 65,183 13,193 13,193 PROFESSIONAL SERVICES 34,972 34,972 26,601 26,601 ADVERTISING 3,614 3,614 2,749 2,749 DUES & SUBSCRIPTIONS 1,261 1,261 959 959 UTILITIES 15,202 15,202 3,077 3,077 BAD DEBT EXPENSE 31 31 24 24' INTEREST EXPENSE 0 0 0 0 RECYCLING EXPENSE 6,509 6,509 1,036 1,036 MANAGEMENT FEES-I/C 14,790 14,790 11,250 11,250 MISC EXPENSE 18,770 18,770 14,278 14,278 ------------ ------------ ------------ ------------ ---------- ------------ TOTAL GENERAL & ADMIN 60,178 0 60,178 33,372 0 33,372 LANDFILL CLOSURE SURCHARGE RETURNED COUPON EXPENSE 0 0 0 0 OTHER 64 64 21 21 STATE & COUNTY FEES 33,234 33,234 10,672 10,672 LANDFILL TIPPING FEE-I/C 371,114 (185,557) 185,557119,176 (59,588) --59,588 TOTAL LANDFILL DISPOSAL ------------ ------------ ------------ - - - ---------- --- & REGULATORY FEES 404,412 (185,557) 218,855 129,869 (59,588) 70,281 TRUCK RENTAL-I/C 123,723 123,723 21,366 21,366 RECYCLING EQUIPMENT RENTAL-I/C 18,709 18,709 0 0 Contra Costa County Rate Application Page 16 March 18, 1994 C RICHMOND SANITARY SERVICE CONTRA COSTA COUNTY ALLOCATION 1993 RATE BASIS 14.53% 14.53% COUNTY ADJUSTED COUNTY ADJUSTED RESIDENTIAL. RATE RESIDENTIAL COMMERCIAL RATE COMMERCIAL 12/31/93 ADJUSTMENTS 12/31/93 12/31/93 ADJUSTMENTS 12/31/93 ------- ------------ ----------- ------------ SHOP EQUIPMENT RENTAL-I/C 649 649 103 103 CONTAINER RENTAL-I/C 9,182 9,182 30,536 30,536 EQUIPMENT RENTAL 31,135 31,135 257 257 ------------ ------------ ------------ ------------ ---------- ------------ TOTAL EQUIPMENT RENTAL 183,398 0 183,398 52,262 0 52,262 CONTRIBUTIONS 4,342 (4,342) 0 3,303 (3,303) 0 PROMOTIONS 13,566 (13,566) 0 10,319 (10,319) 0 -------- ------------ ------------ ------------ ----------MO ------------ TOTAL PRO & CONTRIB 17,908 (17,908) 0 13,622 . (13,622) 0 STATE INCOME TAXES 677 (677) 0 515 (515) 0 ----------- ------------ ------------ ------------ ---------- ------------ TOTAL EXPENSES 2,022,757 (204,143) 1,818,615 425,446 (73,725) 351,721 NET INCOME (220,188) 204,143 (16,045) 80,059 73,725 153,784 • Contra Costa County Rate Application Page 17 March 18, 1994 RICHMOND SANITARY SERVICE EXPLANATIONS OF RATEMAKING ADJUSTMENTS ' 1993 THIS SCHEDULE EXPLAINS THE RATEMAKING ADJUSTMENTS MADE FOR 1993 REMOVAL OF THE FOLLOWING UNALLOWED EXPENSES: CHARITABLE CONTRIBUTIONS $7,645 PROMOTIONS 23,885 INCOME TAXES 1,193. ADJUST DISPOSAL FEE TO SET RATE OF $20 PER TON 245,145 --------------- NET EXPENSES DISALLOWED $277,868 --------------- 1. . 1 - i Contra Costa County Rate Application Page 18 March 18, 1994 1994 RESIDENTIAL AND COMMERCIAL RATE BASIS Contra Costa County Rate Application Page 19 March 18, 1994 RICHMOND SANITARY SERVICE CONTRA COSTA COUNTY ALLOCATION 1994 RATE BASIS 14.53% 14.53% COUNTY ADJUSTED COUNTY ADJUSTED RESIDENTIAL RATE RESIDENTIAL COMMERCIAL RATE COMMERCIAL 12/31/94 ADJUSTMENTS 12/31/94 12/31/94 ADJUSTMENTS 12/31/94 ------------ ----------- ------------ --------- ---------- ------------ REVENUES: RESIDENTIAL COUNTY 1,731,651 1,731,651 COMMERCIAL COUNTY 0 487,347 487,347 SALE OF CURBSIDE RECYC 127,386 127,386 0 OTHER 3,420 3,420 483 483 ------------ ----------- ------------ ------------ ----------- ------------ 130,806 0 130,806 483 0 483 =----------- ---------- ------------ ------------ ---------- ------------ TOTAL REVENUE 1,862,457 0 1,862,457 487,830 0 487,830 ------------ ---------- ------------ ------------ ---------- ------------ ------------ ---------- ------------ ------------ ---------- ------------ EXPENSES SALARIES & WAGES 739,423 739,423 85,237 85,237 EMPLOYEE BENEFITS 180,869 180,869 20,850 20,850 PAYROLL TAXES 60,239 60,239 6,944 6,944 ------------ ----------- ------------ ------------ --'------- ------------ TOTAL SALARIES & WAGES 980,532 0 980,532 113,031 0 113,031 TRUCK EXPENSE 84,256 84,496 13,442 13,442 .INSURANCE 118,819 118,819 13,697 13,697 FRANCHISE FEES 0 0 0 0 TAXES & LICENSES 14,893 14,893 11,328 11,328 ------------ ----------- ------=----- ------------ ----------- ------------ TOTAL TAXES & LICENSES 14,893 0 14,893 11,328 0 11,328 DEPRECIATION 16,669 16,669 3,233 3,233 GARAGE & RECYCLING FACILITIES 88,950 88,950 7,416 7,416 OFFICE EXPENSE 67,790 67,790 13,721 13,721 PROFESSIONAL SERVICES 36,371 36,371 27,666 27,666 ADVERTISING 3,758 3,758 2,859 2,859 DUES & SUBSCRIPTIONS 1,311 1,311 998 998 UTILITIES 15,810 15,810 3,200 3,200 BAD DEBT EXPENSE 33 33 25 25 INTEREST EXPENSE 0 0 0 0 RECYCLING EXPENSE 6,770 6,770 1,077 1,077 MANAGEMENT FEES-I/C 15,381 15,381 11,700 11,700 MISC EXPENSE 19,521 19,521 14,849 14,849 ------------ ----------- ------------ ------------ ----------- ------------ TOTAL GENERAL &ADMIN 62,585 0 62,585 34,707 0 34,707 LANDFILL CLOSURE SURCHARGE RETURNED COUPON EXPENSE 0 0 0 0 OTHER 67 67 21 21 STATE & COUNTY FEES 39,375 39,375 12,645 12,645 LANDFILL TIPPING FEE-I/C 371,114 (185,557) 185,557 119,176 (59,588) 59,588 TOTAL LANDFILL DISPOSAL ------------ ----------- ------------ ----------- ( & REGULATORY FEES 410,556 (185,557) 224,999 131,842 (59,588) 72,254 TRUCK RENTAL-I/C ti 128,672 128,672 22,221 22,221 RECYCLING EQUIPMENT RENTAL-I/ 19,457 19,457 0 0 J Contra Costa County Rate Application Page 20 March 18, 1994 RICHMOND SANITARY SERVICE / CONTRA COSTA COUNTY ALLOCATION 1994 RATE BASIS 14.53% 14.53% COUNTY ADJUSTED COUNTY ADJUSTED RESIDENTIAL RATE RESIDENTIAL COMMERCIAL RATE COMMERCIAL 12/31/94 ADJUSTMENTS 12/31/94 12/31/94 ADJUSTMENTS 12/31/94 ------------ ----------- ------------ ------------ ------- ------------ SHOP EQUIPMENT RENTAL-I/C 675 675 107 107 CONTAINER RENTAL-I/C 9,549 9,549 31,757 31,757 EQUIPMENT RENTAL 32,381 32,381 267 267 ---------- ------------ ------------ ----------- ------------ TOTAL EQUIPMENT RENTAL 190,734 0 1900734 54,352 0 54,352 CONTRIBUTIONS 4,516 (4,516) 0 3,435 (3,435) 0 PROMOTIONS 14,109 (14,109) 0 10,732 (10,732) 0 ----------=- ----------- ------------ ------------ ----------- ----------=- TOTAL PROMO & CONTRIS 18,625 (18,625) 0 14,167 (14,167) 0 STATE INCOME TAXES 50 (50) 0 38 (38) 0 adjustment for variable expenses (8,359) (8,359) (2,525) (2,525) ------------ ----------- ------------ ------------ ----------- ------------ TOTAL EXPENSES 2,090,828 (212,591) 1,878,478 438,640 (76,318) 362,322 -------- ------------ ------------ ---------- ------------ NET INCOME (228,371) 212,591 (16,021) 49,189 76,318 125,508 l Contra Costa County Rate Application Page 21 March 18, 1994 f RICHMOND SANITARY SERVICE EXPLANATIONS OF RATEMAKING ADJUSTMENTS 1994 THIS SCHEDULE EXPLAINS THE RATEMAKING ADJUSTMENTS MADE FOR 1994 REMOVAL OF THE FOLLOWING UNALLOWED EXPENSES: CHARITABLE CONTRIBUTIONS $7,951 PROMOTIONS 24,840 INCOME TAXES 88 ADJUST DISPOSAL FEE TO SET RATE OF. $20 PER TON 245,145 --------------- NET EXPENSES DISALLOWED $278,025 1 Contra Costa County Rate Application Page 22 March 18, 1994 1, COMPARATIVE RATE SCHEDULES t 1 J Contra Costa County Rate Application Page 23 March 18, 1994 M '. . ► CONTRA COSTA COUNTY RATE ANALYSIS CURRENT SINGLE CAN RATES y ' JURISDICTION 1993 ANTIOCH $21.90 BRENTWOOD 18.50 CLAYTON 26.45 CONCORD 23.25 EL CERRITO 14.95, LAFAYETTE 26.70 MARTINEZ 23.10 MORAGA 22.80 ORINDA 25.35 PACHECO 15.15 PITTSBURG 20.00 PLEASANT HILL 20.80 RODEO 18.40 SAN RAMON 14.50 RICHMOND 19.08 WALNUT CREEK 20.95 4 Contra Costa County Rate Application Page 24 March 18, 1994