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HomeMy WebLinkAboutMINUTES - 05042004 - D.5 - Centra TO: BOARD OF SUPERVISORS Costa FROM: Dennis M. Barry, AICP County Community Development Director srAK . DATE: April 22, 2004 SUBJECT: COMMERCIAL RATE INCREASE FOR SOLID WASTE COLLECTION IN THE UNINCORPORATED AREAS SERVED BY GARAVENTA ENTERPRISES UNDER THE COUNTY'S FRANCHISE AGREEMENT SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. ACCEPT report from NewPoint Group dated January 29,2004 regarding their review of the Interim Rate Application submitted by Garaventa Enterprises (EXHIBIT A). 2. APPROVE increased standardized solid waste collection rates for commercial accounts in the unincorporated areas served by Garaventa Enterprises under the County's Franchise Agreement (EXHIBIT B). FISCAL IMPACT No impact to the County General Fund. BACKGROUND/REASONS FOR RECOMMENDATIONS The County has a solid waste collection Franchise Agreement with Garaventa Enterprises (Garaventa) for service to the following unincorporated areas: Bay Point (portion*) Brentwood, unincorporated Byron (portion") Discovery Bay Knightsen North Concord * Portion of Bay Point fails within the area served under the County's Franchise with Pleasant Hill Bayshore Disposal ** Portion of Byron falls within the area controlled under the Byron Sanitary District Franchise The County's Garaventa Service Area includes portions of Supervisorial Districts I II and V. Byron Sanitary District and Ironhouse Sanitary District administer their own solid waste collection franchise agreements and regulate the residential rates for the areas within their boundaries. CONTINUED ON ATTACHMENT: X YES SIGNATURE fj __,-RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMIT EE ,--APPROVE OTHER SIGNATURES : ACTION OF BOAkb ONmAY 4, 2a04 APPROVED AS RECOMMENDED x OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X,UNANIMOUS {ABSENT Nw AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Contact: Deidra Dingman (925/335-1224) ATTESTED cc: Community Development Department (CDD) JO N SWEETEN, CLERK OF THE County Counsel—L. Fujii BOARD OF SUPERVISORS AND Garaventa Enterprises (via CDD) A COUNTY ADMINISTRATOR BY DEPUTY ::\Franchise n mates\GE Rates\Btu-GE interim Year Rate Increase.doc 'Changes in Commercial Solid Waste Collection Rates Charged by Garaventa Enterprises April 22, 2004 Page 2 BACKGROUND/REASONS FOR RECOMMENDATIONS continued NewPoint Croup Review The County entered into an agreement with NewPoint Group to review the Interim Year Rate Change Application submitted by Garaventa. The result of NewPoint Group's review is contained in their letter dated January 29, 2004, which is attached as EXHIBIT A. NewPoint Group conducted their review consistent with the applicable provisions of the Rate Betting Manual approved by the County for use in the Garaventa Service Area and the results of this review is reflected as Option A in their letter. Additionally, NewPoint Group reviewed Garaventa's proposal to only increase commercial rates while standardizing commercial rates and the results of this review is reflected as Option B in their letter. Proposed Solid Waste Collection !Fate Increase Garaventa has proposed to standardize the commercial rates charged in their Service Area under the County's Franchise and at the same time only increase their commercial rates in this Interim Year without increasing residential rates. NewPoint Group conducted a Base Year rate review in 2002, which resulted in a recommendation for a rate increase of, on average, 7.66 percent, for 2003. Residential rates regulated by the County also were standardized (regionalized) at that time. Garaventa recently increased commercial rates in the Byron/Ironhouse Sanitary District areas to reflect the regionalized commercial rate structure proposed by Garaventa for the County Franchise Service Area(identified as Option B in NewPoint Group's report). Unlike the County,these districts do not require their Boards to approve commercial rate changes. Option A— Increase Residential & Commercial Mates (NO'S RECOMMENDED) Interim year rate changes are calculated based on a weighted increase in controlled and uncontrolled costs. Based on using the weightings and indices consistent with the County approved Rate Setting Manual, the required rate increase would be 2.0% to both residential accounts (about 7,500 customers) and commercial accounts (about 180 customers). The recommended 2.0% increase of the solid waste collection rate was calculated based on the 4.16% projected increase in uncontrolled costs and 1.49% increase in controlled costs. Uncontrolled costs refer to tipping fees and associated regulatory charges. Garaventa submitted an Interim Year Rate Change Application showing a projected 4.16% increase of the tipping fee (also referred to as the gate rate)at the Transfer Station in Pittsburg. Controlled costs include all costs other than tipping fees and associated regulatory charges. Controlled costs are adjusted based on the change in the CPI, which increased by 1.09%. Option B — Increase & Standardize Commercial Rates (RECOMMENDED) Staff recommends approval of Option B consistent with the proposal by Garaventa, which will standardize commercial rates across the County Franchise Service Area. Under this scenario residential rates would remain unchanged and commercial rates would be increased to make up the entire revenue requirement resulting from this Interim Year review. The resulting commercial rate structure would be regionalized so that rates charged for the same level of service would be the same for all communities served under the County's Franchise. This is consistent with the action of the Board in 2002 relative to standardizing the residential rates in this Franchise Service Area. The existing commercial rate structure under the County's Franchise is shown by community in Exhibit B. The proposed commercial rate increase and standardization would result in rates between 2—25% higher than current rates, depending on the service level and community. Overall commercial rates would be increased on average 11.79%. Additionally, the number of customers as well as the percent of rate increase for each Service Level within each community is also shown in Exhibit B. Changes in Commercial Solid Waste Collection Rates Charged by Garaventa Enterprises April 22, 2004 Page 3 The new proposed standardized rates are shown below. These proposed rates are consistent with the commercial rates now charged in Bethel Island,Oakley and a portion of Byron (under the franchises between Garaventa and Ironhouse Sanitary district and Byron Sanitary District), New Levet of Service Proposed Rates 2 yard bin 1 x week $ 997.50 2 yard bin 2 x week $ 355.00 2 yard bin 3 x week $ 592.50 2 yard bin 4 x week $ 670.00 2 yard bin 5 x week $ 627.50 3 yard bin 1 x week $ 276.00 3 yard bin 2 x week $ 592.00 3 yard bin 3 x week $ 749.00 Commercial Cans $ 27.25 Commercial Toters $ 47.50 ATTACHMENTS Exhibit A--Letter from NewPoint Group dated January 29, 2004 Exhibit E—Commercial Rate Table(Existing Rates and Proposed Standardized Rates) DAFranchise n Rates\CE Rates\Btu-GE Interim Year Mate Increase.dcc Management Consultants EXHIBIT A January 29, 2004 Ms. Deidra Dingman Solid Waste Program Manager Community Development Department Contra Costa County 651 Pine Street 4t'Floor,North Wing Martinez,California 94553 Subject: 2004 Interim Rate Review of Unincorporated Contra Costa County Areas Served by Garaventa Enterprises This letter report represents NewPoint Group,Inc.'s review of the 2004 Interim Year rate application(Application)submitted by Garaventa Enterprises(Garaventa) for unincorporated Contra Costa County(County). Garaventa submitted its Application to the County on December 1, 2003. County rate setting is guided by the County's 1995 Rate Setting Process and MethodoloDg Manual,for Residential Solid Waste Charges as Applied to Garaventa enterprises(Manual). The County's rate setting process allows Garaventa to submit an Interim Year rate application during the three years between Base Years. The County regulates rates in the following six(6) unincorporated areas served by Garaventa: 1. Bay Point(part of Bay Point) 2. Brentwood 3. Byron(except for the area located within Byron Sanitary District boundary) 4. Discovery Bay 5. Knightsen(small number of accounts,no commercial) 6. North Concord (small number of accounts,no commercial). Byron Sanitary District and Ironhouse Sanitary District administer their own franchise agreements and regulate the residential rates for the areas within their boundaries. A Base Year rate review conducted by NewPoint Group in 2002 resulted in a recommendation for a rate increase of, on average, 7.66 percent,for 2003. Residential rates regulated by the County also were regionalized(i.e.,made the same) at that time. This 7.66 percent rate increase ultimately was implemented between March and May of 2003, depending upon the County service area. Additionally, Garaventa recently has increased commercial rates in the Ironhouse Sanitary District area to reflect the regionalized commercial rate structure proposed in the Application (and identified as Option B in this report). Unlike the County,this district does not require its Board to approve commercial rate changes. + 2555 fiNrd Street,Soto 215.Socrdrnonto.Cofltotnto 96%i 8 * c :(r 10 2.05 & Fox.( t 6)442x071 d NewP6*int roup" Management Consultants Ms. Deidra Dingman Page 2 January 29, 2004 A. Project Scope Our review was conducted consistent with the required County Interim Year rate review steps in the Manual (i.e., Steps 2, 4, and 5). The timing of the review did not coincide with the schedule shown in the Manual for an Interim Year review because the Application was not submitted until December 1, 2003. The Manual calls for an Interim Year application to be submitted by September 1 for implementation on January 1 of the next year. As a result of the December submission, an interim year rate change, if approved by the County Board of Supervisors(Board), likely would be not be fully implemented before April of 2004. Garaventa's 2004 Application is provided as Attachment A to this letter. In its Application, Garaventa noted that a "disparity still exists with commercial garbage rates"in the County. Garaventa included in the Application a proposal to regionalize County commercial rates. We evaluated this proposal in addition to our review in accordance with the.Manual requirements. The remainder of this report presents two options for the County to consider and our recommendation: B. Option A —Rate Change Based on Manual Guidelines C. Option B--Rate Change to Regionalize Commercial Rater D. Recommendation. B. Option A--Rate Change Based on Manual Guidelines We prepared the Interim Year Date Change Worksheet(Worksheet, a copy of which is included as Attachment B). We used controlled and uncontrolled costs in the Worksheet consistent with those casts approved in the prior 2003 Base Year rate review. Controlled costs represent 72.3 percent of the total costs while uncontrolled costs(i.e.,tipping fees)represent the remaining 27.7 percent of the total casts. 1. Controlled Costs Controlled costs are increased by the rate of change in the San Francisco-Oakland-San Jose Consumer Price Index(CPI). The CPI period used for purposes of this Interim Year rate review was December 2002 to December 2003. As shown below, this has been a period of very low inflation, with the CPI increasing just 1.09 percent during that year. Consumer e€fectsvebase fi last rate 1/b3 193.2 Price. Index �f4!...r ._.._ ..-»... ... adjustment) Consumer Price Index as of 12131103 195.3 m _. Cham to CPI 5 ' 2.1 °Ia change}n„the CPI! __.._!_._ ._ .__... . 1.09% ., _ 1.0910 CPI source data is provided in Attachment C. New4int GLqup Management Consultants Ms. Deidra Dingman Page 3 January 29, 2004 Based on this change in the CPI,rows 9 through 1 I on page 2 of the Worksheet were completed as follows: Change in Controlled Cost ( i 91, Procfed_iqhan�e rn Consumer Price Index ( __..p .. _ 9.09% >� Adiustment Factor from Prior Interim Year 0% f. r _._.__.iAd'usted Proms ed Change in Consumer Price Index 9.09°l0 This is the first interim year following a Base Year, so there is no adjustment factor from a prior interim year. 2. Uncontrolled Costs In the Application, the tipping fee rate at the Pittsburg Transfer Station was increased from $50.50 per ton to$52.60 per ton, or by 4.2 percent. Based on this data,rows 12 through 18 on page 2 of the Worksheet were completed as follows: Change rn uncontrolled Cost . 12 r Pnor_Yeer,Tipping Fees Per_Ton 50.50 ... .... 13 Pius: Prior Year R tato Fees Per Ton ¢ Equals Tota4 Prio rYear Unronfrolled,Costs Per Ton 50.50 , I Projected Interim Year Tipping Fees Per Ton 16 1 Plus: Prri ected Interims Year R ulat Fees Per Ton $ r- 8 17` Equals Total PT[�cted Interim Year Uncontrolled Costs Per Ton $ 52,6t3 Pro cted Chan e in Uncontrolled z,. ,.. _z. ...._..__ ....___.._ _.s._,....m._.._ ..1?_....._.._._...�.�__..._. _Costs ..___......._�.m.._.E.. .._._,........._,...e___. _ 4.96% In 1998, at the time the Manual was written:,the tipping fee rate was $45.00 per ton. Thus from 1998 to 2004,the tipping fee rate has increased 16.9 percent. During this same period,the CPI has increased from 167.2 (10/98)to 196.3 (10/03),or a 17.4 percent increase. Thus the tipping fee rate has essentially increased at the rate of inflation during this seven-year period. We confirmed by telephone that this tipping fee rate is currently the same rate charged to self-haul customers, whose loads are weighed, at the Pittsburg Transfer Station. A total of five other neighboring disposal facilities also were surveyed. Tipping fee rates for self-haul weighed loads are shown below: U Contra Costa Transfer&Recover Station(Martinez)—$53.00 per ton(under one ton) and$62.25 per ton(over one ton) Cl Davis Transfer Station (Oakland)—$79.50 per ton U Berkeley Transfer Station(Berkeley, over 330 pounds)—$78.75 per ton © Pleasanton Transfer Station (Pleasanton)—$47.50 per ton U West County Landfill (Richmond, over 5 yards)--$62.50 per ton plus$2.75 per ton (State&County fees/taxes) for a total of$65.25 per ton. These rates average $66.65 per ton for weighed loads(above one ton). This survey confirms that the tipping fee rate charged at the Pittsburg Transfer Station is essentially on the lower end NewP6'nt Gnuj2' Management Consultants Ms. Deidra Dingman Page 4 January 29, 2004 of the range of weighed tipping fee rates charged to self-haul customers at other neighboring disposal facilities. Based on using the weightings and indices in the Worksheet(rows 19 to 27), and adjusting for franchise fee payments to the County(equal to five percent of gross revenues),the required rate increase is 2 0oercent to both residential and commercial customers. The corresponding residential rates,rounded to the nearest$0.05 increment,under this Option A are shown below (and on the first page of the Worksheet). For service using hauler-supplied containers, an additional$3 per customer,per month,charge would be added to the 40-gallon rates below: Adjuster! New Rate Schedule Current Rate Rate Adjustment Rate 1-20 Gallon Can service(all areas) $ 19.85 $ 20.36 $ AO.02 1-40 Gallon Can service(Areas other than Byron/IH) $ 23.80 $ 24.29 $ 1-40 Gallon Can service(Bryon) $ 49.7`0 $ 20.10 $ 1-40 Gallon Can service(ironhouse SD) $ 23.60 $ 24.08 $ C. {option B-Rate Change to Regionalize Commercial Rates Garaventa also included in the Application a proposal to regionalize County commercial rates across its service areas. Under this scenario residential rates would remain unchanged and commercial rates would be increased to make up the entire revenue requirement resulting from this Interim Year review. The resulting commercial rate structure would be regionalized so that rates charged would be the same for all areas in the County. The existing commercial rate structure is shown below by County area. Rates subject to the County's approval are those in Bay Point,Brentwood, and Discovery Bay. Also shown in the table below are Oakley area rates,which are regulated by the Ironhouse Sanitary District, and Byron area rates(currently the same as Brentwood rates and representing 7 of the 85 bin customers in the combined Brentwood/Byron area), which are regulated by the Byron Sanitary District. Section 1--Current monthly Commercial Rates _ Area (.eve!of Service _ Bay Point Oakley Brentwood/Byron Discovery Bay 2 and bin i x week _ $178.8(7 $181.95 _ $182.60 2 hard bin 2 x week $300.75 $328.35 $328.35 $307,20 2 yard bin 3 x week422.80 $475.85 75.85 $431.70 2 vard bin 4 x week 544.70 $622.25 62225 $556.30 2 'ard bin 5 x week 6.65 $813.65 $813.65 $680.90 66 3 ard bin 1 x week $236.25 $252.00 $252.00 $252.00 3 yard bin 2 x week $418.90 $477.00 477.00 $477.00 3 vard bin 3 x week 601.50 $702. $702.00 $702.00 Commercial Can $24.30 $26.40 _ _$26.40, 24.75 Con'rmercial�oters� $38.80 $44.00 $44.00 $38.90 NeitdPOlt t Group", Management Consultants Ms. Deidra Dingman Page 5 January 29, 2004 This proposed regionalized commercial rate structure would be as follows. Level of Service _ New Rates 2 yard bin 1 x week $197.50 2 yard bin 2 x week $355.00 2 yard bin 3 x week $512.50 2 yard bin 4 x week $670.00 2 yard bin 5 x week $827.50 l 3 yard bin 1 x week $276.00 3 yard bin 2 x week $512.00 3 yard bin 3 x week $749.00 Commercial Cans $27.25 Commercial Toters $47.50 All areas in the County would be charged this common rate. This new rate structure would adequately cover the entire revenue shortfall of approximately$110,000(which would be trade up by the 2.0 percent across the board rate change proposed in Option A). This regionalized rate structure would increase County area commercial rates by between 7,17.and 15.03 percent on averse doending Won the service type. as shown below. Overall commercial rates would be increased on averages 1._11.79�percent. Level of Service Average 2 yanq.Un 1 x week 8.93% 2 yard bin 2 x week 12.46% 2 yard bin 3 x week, 13.84% 2 yard bin 4 x week 14.70% 2 yard bin 5 x week 12.27% 3 yard bin 1 x week 11.35% 3 y2rd bin 2 x week 11.06% 3 yard..bin 3 x week 11.16% Commercial Cans 7.17% Commercial Toters 15.03% All 11.79% New fnt Grou " Management Consultants Ms. Deidra Dingman Page 6 January 29,2004 Percent rate changes by area and by rate category are shown below. The majority of the customers use 2-yard bins either picked up one time per week and two times per weep. These customers' rates will increase by 8 to 10 percent for the 2-yard bin picked up once per week and 8 to 18 percent for the 2-yard bin picked up two times per week. Individual rate increases would range from 3 percent to 25 percent depending upon the rate category. Rates subject to the County's approval are these in Bay Point,Brentwood, and Discovery Bay. Oakley and Byron area rates are regulated by their respective sanitary districts. Percent of Percent Rate Increase Level of Service Customers New Rate Bay Point Oakley Brentwood/Byron Discovery Ba 2 yard bin 1 x week 55% $ 197.50 10% 9% 9%fl 8%fl 2 yard bin 2 x week 10%n $ 355.00 18% 8% 8% 16%fl 2 yard bin 3 x week 8°Ifl $ 512.50 21% 8% 8%fl 19%fl 2 yard bin 4 x week 1% $ 670.00 23% 8% 8% 20% 2 yard bin 5 x week 3%fl $ 827.50 24%fl 2% 2% 22% 3 yard bin 1 x week 2% $ 276.00 17%fl 10% 10% 10%fl 3 yard bin 2 x week 1% $ 512.00 22%fl 7% 7% 7°Ifl 3 yard bin 3 x week 3% $ 749.00 25% 7%n 7%fl 7% Commercial Cans 9%fl $ 27.25 12%fl 3% 3%fl 10% Commercial Toters 9%fl $ 47.50 22% 8% 8%fl 22%fl In contrast to the 2.0 percent rate increase proposed in Option.A, these larger commercial ate increases are necessary to make up the revenue shortfall because commercial service represents approximately 20 percent of total County business, while residential service represents the other 80 percent of County business. We conducted a survey of commercial rates in the following twelve(12)neighboring jurisdictions. 1. Antioch 5. Lafayette 9. Pittsburg 2. Clayton 6. Martinez 10.Pleasant Hill 3. Concord 7, Moraga 11. Walnut Creek 4. Danville 8. Orinda 12.Unincorporated County(CCCSWA) Based on the comparative survey of commercial rates,proposed County bin rates would be between two percent below the average, and eight percent above the average, of the 12 jurisdictions. For three of the four comparison rate categories, proposed rates are below the average. Together, these four categories of bin service represent roughly two thirds of the total number of commercial accounts. Average Proposed %Diff. Service w/o Garaventa Garaventa from Average 1 pickup per week 2 cubic yards 183.61 197.501 8% 3 cubic yards 277.98 276.00 -1% 2 pickups per week 2 cubic yards 358.04 355.00, -1% 3 Cubic Yards 524.75 512.00��-2°l° NewR�nt Group" Management Consultants Ms. Deidra Dingman Page 7 January 29, 2004 D. Recommendation We recommend that the County consider approving Option B,the regionalized commercial rate structure for several reasons. A regionalized commercial rate structure is appropriate because the cost of providing commercial service to each County area is not materially different. Commercial rates are different in each County service area based primarily on historical rate setting practices that occurred prior to the County adopting the Manual. Proposed regionalized commercial rates, for the most common service categories, also are generally comparable to the average of commercial rates in neighboring jurisdictions. While outside of the Manual specifications for an Interim Year rate change, Option B is equivalent to Option A in terms of the revenue that it would generate. Option B does however mitigate rate impacts to residential ratepayers that would occur(under Option A)following the 2003 rate increase of 7.66 percent. A regionalized commercial rate structure also would be highly consistent with the regionalizing of the residential rate structure in 2003. While we would recommend Option B for the reasons stated above,we also would support the County recommending Option A based on the Manual's specifications. The 2.0 percent rate increase has an equal impact to all County ratepayers. Additionally, for commercial customers the 2.0 percent rate increase in Option A is much less significant than the proposed average 11.79 percent rate increase in Option B. Even with Option A,we would continue to recommend that the County consider regionalizing commercial rates,but at a later date. The County's current Franchise Agreement with Garaventa allows rates to be adjusted up to the CPI without Board approval. Because both Option A and Option B would increase rates by more than the CPI,either option would require Board approval. Should you have any questions regarding this letter report,please do not hesitate to contact Erik Nylund in our Oakland office at(510) 338-0104. Very truly yours, NewPothf � Inc, Jim Gibson, :Director NewPAt rca� Management Consu;tonts Nis. Deidra Dingman Page 8 January 29,2004 Attachment A 2004 Interim Year Rate Application z 0, Garaventa Enterprises w 4080 MALLARD DRIVE • P.O.BOX 5397 CONCORD,CALIFORNIA 94520 � (925)689-8390 Ms.Deidra Dingman,Solid Waste Program Manager Contra Costa County Community Development Department 651 Pine St.,0 Floor,North Wing Martinez,CA 94553-0095 November 28,2003 RE: Interim Rate Application Dear Ms.Dingman, Enclosed is an Interim Year Rate Application for Craraventa Enterprises franchised areas for unincorporated Contra Costa County. As per the Rate Setting Process Manual for Solid Waste Charges,we have completed the application page for changes in controlled and uncontrolled costs. We have also completed the Interim Year Rate Change Worksheet for your convenience. The results would indicate an increase of 2.43%for the residential and commercial rates. We would like to propose the following. In the Base Year Rate Application of 2002,we established uniform residential rates service area wide,however,disparity still exist with the commercial garbage rates. The interim rate adjustment gives us the opportunity to standardize the commercial rates area wide,and at the same time we would advocate no change to the residential rate. Along with the application we have included the current commercial rates,number of customers,current commercial revenue,and the proposed area wide rate and the percent change for each level of service to the corresponding area. The resulting rates are comparable for other areas. We have attached a survey of bin rates for Contra Costa County,shaded areas are confirmed current rates,un-shaded areas are from a December 2002 survey. We would respectfully request the rates proposed go into effect February 1,2004. As always,if you have any questions please do not hesitate to call at(925)682-1148 Sincerely, Clark Colvlt CF© NewPent GroujZ Mcancagement Consuttonts Ms. Deidra Dingman Page 9 January 29, 2004 Contra Costa County interim Year Rate Change Application Change in Uncontrolled Cost 4 Prior Year Tipping Fess per Ton 2 Plus' Prior YawR wry Fees Per Ton 3 7 gnosis Total Prbr Year Uncontrolled Casts Per Tar LL50.50J 4 Projected interim Year Tipping Fees Per Tan $ 52.t10 5 Pius' Protected}ntettm Year Regulatory Fees Per Ton � 8 Equals: Toto}Projected Interim Yaar Uncontrolled Cats Per Ton 52.80 7 Projected Change In Uncontrolled Casts. 4.40 Tipping fee rates haus been annual CPI increasee as per contract with the disposal ate.. The rate In the Base Year Rate Application was$50.50 pet ton,based on tipping fees in 2002. The Projected Interim rate Is the tipping fee effective January 1,2004. Ran Consumer Price Index as of414103 493.2 (effective bass of lost rats adjustment) Consumer Prig Index as of 40130/03 498.3 Change in CPI 3.4 %change in the CPI 1.60% To the best of my knowledge,the data and information in this application Is complete,accurate,and consistent with the instructions provided by the Contra Costa County. Name: Clarrkk�CoWls Title: CFO Signature: ice!�--c---, 6 , pate: W2812003 Year: 2004 Page 1 of 4 NewP6*nt Group'' Management Consultants Ms. Deidra Dingman Page 10 January 29, 2004 Contra Costs County Interim Year Rate Change Worksheet Financial tnfommdon -- goes Year Controlled Costs Y Total Operating Costs $ d 8151Bi 2 Plus: Allowable Operating PrrAt $ 345183 3 menus: ripping Fen(ProlitAllawed) $ 11340,240 4 Equals. Totes Controlled Costs $ 3,920104 72.3 Base Year Uncontrolled Costs 5 Tipping Fess(Prott NbArsd) $ 1,340 240 8 Plus: Tipping Fees(Pass Through) $ 163,847 7 Equals. Total Uncontru led Costs 1$ 1 504 Od7 27. % 8 Bess Year Revenue Requirement(tela Franchise Fee) I I 5 42d 151 r 100.02Z Change in Controlled Cost B Projected Change in Consumer Price Index 10 Adjuslmarrt Factor t�Prior Interim Year Oil I 1 Adjusted ProJac tad Change In Consumer Prirxi Index Change in Uncontrolled Cost 12 Prior Year Tipping Fees Per Ton 13 Plus; Prior Year R I Few Par Ton 14 Equals: Total Prior Year Uncontrolled Coats Per Ton 3 50.50 15 Projected Interim Year Tipping Fees Per Ton 18 _Plus: Prolected Interim Year Regulsbn Feas Per Ton $ 17 Equals: Total Projected Interim Year Uncontrolled Costs Per Ton 78 Projected Change in Uncontrolled Costa 4. 8 Weighted Change in Controlled Costs f 8 Controlled Costs as%of Base Yr.Revenue Requirement 20 MuRipCad by, AdJusted Protected Change in Consumer Price index 1 8i)% 21 Equafs: Weighted Ctrange In Cattroi[ad Costs Weighted Changs In Uncontrolled Costs 22 Uncoontrolted Costs as%Bae Yr.Revenue Requirement 23 Mufhpfred by: Prolected Change in Uncontrolled Costs 24 Equals: Weighted Change rn Uncommiled Costs Total Change 25 Total Percent Change in Costs 28 Divided by: Adjustment for Franchise Fee(1-5.0%) 95.0 27 Equals Percent Change in Existing Rates 28 Base Year Revenue Requiremnt(Less Franchise Fee) $5,424 151 29 Mullipbed by: Total Percent Change in Costs Total Cost Adjustment $125445 Divided by., Adjustment for Franchise Fee(i-5.W.) g5.0% Total Revenue Shortfall $ 132,047 Year. 2004 - Page 2 of 4 NewPcc nt Grcu Management Cnnsu tants Ms. Deidra Dingman Page 11 January 29, 2004 Caft Costa County _ Interim Year Rate Change Worksheet Opera!f g,lnf©rmadon Area Bay Point Oakley BrardwoodlByron Discovery Bay Laval of Service tZ1 xweek $178.80 $181.95 $181.95 $182.$0 b2 x week $300.75 $328.35 $328.35 $307.20 2 yard,bin 3 x week 22.80 $475.85 $475.85 $431.70 2 lad bin 4 x week $544.70 $$22.25 $822.25 $558.30 and bin 5 x week $808.$56 $813.85 $$80.90 3 yard bin 7 x week $238.25 $252.00 $252.00 $252.00 3Yad bin 2 xweek 4#8.90 $477.00 $477.00 $477.00 3 bin 3 x week $807.50 $702.00 $702.00 $702.00 Commerclel Cans 4.30 $2$.40 $28.40 $24.75 Commerclat Totem Es.90 $44.00 $44.00 $35.90 Arca Bay Point Oakley 8rcntwoodfeyron Discovery Bay Leval of Service 2 yard bin 1 x week 5 147 71 12 2 ywd bin 2 x week 0 30 4 8 2 yjLd bin 3 x week 0 20 4 9 2yard,bin 4 x week 0 4 1 1 rd bin 5 x week 0 7 3 2 3 yard bin 1 x week E I 1 0 0 Iyard bin 2 x week 2 0 2 0 3yqo,bin 3 x week 10 1 0 0 Commmim Canal 1 24 12 3 menial Totem 8 10 t3 71 Arca Bay Palet Oakley BrantwoodlByrort Dlacrwery Flay Total Laval of service 2 bin 1 x week $10 728.00 $320 959.80 $#5S 027.40 $28 294.40 $513,003.80 2 trin 2 x weak $0.00 $118 08.00 15 780.80 $29,491.20 $183,458.00 and bin 3 xweek $0.00 $114 04.00 $22 840.80 $46,823.80 $183868.40 bin 4 x weft $0.00 $29 888.00 $7487.00 $8 875.80 $44 010.80 2 erd bon 5 x week $0.00 $88 34$.80 $29 291.40 $16,341A0 $113,979.80 Yard bin 1 xweek 1 $17.010.00 $1,014-1 $0.00 $0.00 $20 034.00 3 earl bin 2 x week $10 053.80 $0.00 $11 448.00 $O.00120,170A0 1 .80 bfn 3 x+xeek $72,M.00 $8.424.00 $9.00 $0.000 .00 merolal Cana $291.80 $7$03.20 $3 801.80 $897.002 A0 marcial Totem $2 800.80 $5 280.00 $8 884.00 $5,#34.80 Totai $1772,92$.80 Year: 2004 - (sage 3 0l4 NewP66nt Groin Management Consultants Ms. Deidra Dingman Page 12 January 29,2004 Contra Caste County Interim Year Rate Change Worksheet C?�Se�tirrg ini�irm�ticln New limes Bay palm Oskloy 6reniwccrd119yron blrcovery Hay Level of Service 2 ywd bin 1 xweek $197.60 10.46% 8.55% 8.55% 8.16% bin2 x week 66.110 18.04% 8.12% 8.12% 15.56% and Gin 3 x week $412.60 21.22% 7.70% 7.70% 18.72% 2 XeLd bin 4 x weak $670.00 23.00% 7.87% 7.67% 20.44% 2 vard bin 5 x week $627.80 24.13% 1.70% 1.701% 21.53% yard bin 1 x w 276.00 16.63% 9.52% 9.52% 9.52% 3 erd bin 2 x weak 12.86 22.22% 7.34% 7.34% 7.34% 3 bin 3 x week 746.00 24.52% 8.70% 8.70% 6.709 Commercial Cans 27.28 12.14% 3.22% 3.22% 10.10% er CommWTbters 7.66 22.11% 7.95°!a 7.95% 22.11% Foto[ protected Levet of Service customers Now Reqs Revenue 2yard btn 1 x weak _ 235 187.60 $556950 2 rd bin 2 x week 42 $388.00 $178 820 2yard bin 3 x week 33812.1300 $202 950 rd bin 4 x week 6 670A0 $48 240 2 yard bin 5 x week 12 $627.80 $119,160 and bin l xweek 7 $276.06 $23164 3 yard bin 2 xweek 4 $5`11000 $24576 4jarcl bin 3 xweek 11 $749.00 $98866 ommerclal Cana 4D $27.26 $13,080 ar rnerdal Tatars 40 $47.80 22.800 Total $1,288,728 Current Revenue $1 172 927 Increased Revenue $115,601 Revenue Shortfall $132 047 Onfa nce $18 246 Year: 2004 Page 4 of 4 NewRc in# Grour Management ConsOonts Ms. Deidra Dingman Page 13 January 29, 2004 c MI am Rot" ., ....... ;o... d. y 3 t R L 71 n �M4T2 NAY' .. NewP6'nt Groug' Management Consultants Ms. Deidra Dingman Page 14 January 29, 2044 Attachment B Interim Year Rate Change Worksheet(page I) Contra Costa County Interim Year Rate Change Worksheet Summary 1. Percent Change in Rates Requested 2.a Adjusted Now Rate Schedule Current Rate Rate Adjustment Rate 2. 1-20 Galion Can Service(all areas) $ 19.85 $ 20.36 $ 0101 3. 1-40 Gahan Can Service(Areas other than Byron/fl-!) $ 23.611 $_�24.29 $.,, 0.01 3. 1-40 Gallon Can Service(Bryon) $ 18.70 $ 20.10 $_ - 3, 1-40 Gallon Can Service(lronhouse SO) $ 23.60 $ 24.08 S 0.02 Toter rental will amain at a oast of$3.00 per customer,per month. For example,the monthly rate far a tater in Syron would be$23.10 per customer per month($20.10+$3.00). Year. 2004 Page 1 of 2 Ne I int rpgp"' Management Consultants Ms. Deidra Dingman Page 15 January 29, 2004 Attachment B Interim Year Rate Change Worksheet(page 2) Contra Costa County Inteft Year Rate Change Worksheet Financial Information Base Year Controlled Costs 1 Total Operating Costs $ 4,915181 2 Plus: Nlowabie Operating Profit 346,163 3 Minus: TipplM Fees Froth Allowed $ 1,340,240 4 Equals: Total Controlled Costs 3 920,104.1, 72.3% Base Year Uncontrolled Costs 5 Tipping Fees{Profit Allowed} 1,3!:,'2:4:] 0 0 & Pius: Tlppr+g Fear{Pass Through $ 1 7 Equals: Total Uncontrolled Costs 1,%4.0471 27.70 8 Base Year Revenue Requirement(Less Franchise Fee) s— s-424-1 5 1 T— 100.091 Change in Controlled Cost 9 Projected Change In Consumer Price Index 1.1 10 Adjustment Factor from Prior Interim Year 0.0°fo 11 Adjusted Projected Change in Consumer Price Index Change In Uncontrolled Cost 12 Prior Year Tipping Fees Per Ton 50.50 13 Plus: Prior Year Regulatory Fees Per Ton $ 14 Equals: Totai Prior Year Uncontrolled Costs Per Ton 60.50 15 Projected Interim Year Tipping Fees Per Ton 52.60 16 Plus: Projerted interim Year Regulatory Pees Per Ton 17 Equals: Total Projected Interim Year Uncontrolled Costs Per Ton 52.60 18 Projected Change in Uncontrolled Costs Weighted Change in Controlled Costs 19 Controlled Costs as%of Base Yr.Revenue Requirement 72.3°h 20 Muifiplied by: Adjusted Projected Changa in Consumer Price Index1.1% 21 Equals. Weighted Change in Controlled Costs 0.8% Weighted Change In Uncontrolled Costs 22 Uncoontrolied Costs as%Bae Yr,Revenue Requirement 23 Multiplied Projected Change in Uncontrolled Costs 4.295 24 Equals: Weighted Change in Uncontrolled Costs 1.2% Total Change 25 Total Percent Change in Costs 1.9°l0 26 Divided by: Adsustment for Franchise Fee 1-5.0% 950% 27 Equals Percent Change in Existing Rates 1 2.07. Year' 2004 Pane 2 of 2 Newmont rogO Manogernent Consultants Ms. Deidra Dingman Page 16 Janizary 29, 2004 Attachment C San Francisco-Oakland-Sart Jose Consumer Price Index Data series Idt CULTA422SAO,CUUSA422SAO Not Seasonally Adjusted Area: San Francisco-Oakland-San Jose, CA Stam: All items Base Period. 1982-84+100 NAM mud= h x ...,. 145.3. 145.5 145.7 146.8 146.9 146.1 146.1 146.2 146.5 147 147.2 143 146.31 146 146.7 :�., '' �a# .x 150.3 15015 151.1 151.5 151.E 151.7 151.5 151.5 152.3 152.61 152.4 152.1 151.6 151.1 152.1 157 157.9 159.2 159.6 159.8 160 150.6 161.2 161.6 162.5 162.6 162.6 160.4 158,9 161.9 159.4 172.2 1+7g1,8 173.5^ 175.2 174,5 172.5, 170.8 234.2 187.9 189.1 190.9 191 191.7 190.6 189.9 188.3 192 1 197.3 197.3 196.3 19+.3 196.3 195.3 196.4 196,8 196.1 WCD0) C) NCJr- r• oN C14 C14 Y- N ro � ea m Lo rN- w CSS r N CS d C7 M CD (' o E� > y `7y� 9 c.4 \ L 0 0CS0C) 00C) kc) 0 tocyr chrno0 r rn NC) M0aUir 004 C") v ILL � � C�.S 'e3' d' + tM7C, NC7r � h• O E r 4FW 0 Ic Lo tC) t[) U-) V) CS C? o o C7 T CSSc1CCSNUJC� C) 0er0 �+ � N T" Co417NMNI- NCo 'CY a 4 j J �t3 tR 69, t9k 66 tq EA U 0 Co M It fl N LO CN W � N N 04 cq CN N 0 ILi {� A m E ° LLi cl m CK N Ln p„ m Z 0 Lu_ C7 to 0 0 U') 4') 0 O CS 0 L �/} m w CO r M r cD N CSS 4) cMl o CO 0 N Mt CO 0 CD r e} 00 � CL to rM q oNIt' t�'l,fN � � 0 CC 60. 60, 63 Eti 64 d3 — w ttl a• C� 00 e-^ CM7ex r• 04 tel N N w w to *- � NNNti— N 04 N p o 0 � ro • �, usooc7c vNLo (o IV) g _ N .� CL CL ° a j k CS a �` w at✓` N _ r N LU 00 LO00U'} 41) aC� 00 C CC) h� CO r` CCS N CSS 1YS Cl? 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