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Home My WebLink AboutMINUTES - 04122005 - SD3 ,r OF SUPERVISORS To: BOARD Contra Dennis M. Bar Costa FROM: Barry, AICP { Community Development Director C° p � __ ountyDATE: April 12, 2005 A.cves SUBJECT: RATE INCREASE FOR SOLID WASTE COLLECTION IN THE UNINCORPORATED AREAS SERVED BY GARAVENTA ENTERPRISES UNDER THE COUNTY FRANCHISE AGREEMENT SPECIFIC REQUESTS OR RECOMMENDATION{S} +& BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. ACCEPT report from NewPoint Group dated February 25, 2005 regarding their review of the Interim Rate Application submitted by Garaventa Enterprises {EXHIBIT A}. 2. APPROVE a solid waste collection rate increase of 3.89% for customers in the unincorporated areas served by Garaventa Enterprises under the County's Franchise Agreement. 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) Discovery Bay Brentwood Knightsen Byrom North Concord ' Except for the area located within Byron Sanitary District Boundary The County's Garaventa Service Area includes portions of Supervisorial Districts 111, IV,V. CONTINUED ON ATTACHMENT: X YES SIGNATURE ow�ECOMMENDAT ION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD C ITTEE PPROVE OTHER SIGNATURE (S): ACTION OF BO R ON 144 1 Cz APPROVED AS RECOMMENDED .,'OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS ATRUE wI�VNANIMOUS (ABSENT _ . 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. f S Contact. Derdra Dingman (925/335-1224) ATTESTED4 u /f , . cc: Community Development Department(CDD) JOHN SWEETEN, dLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR jr �--' DEPUTY BY , Proposed Solid Waste Collection Rate Increase—Garaventa Enterprises April 12, 2005 Page 2 BACKGROUND/REASONS FOR RECOMMENDATIONS (continued) NewPoint Group Review The County entered into an agreement with NewPoint Group to review the Interim Year Rate Change Application submitted by Garaventa. NewPoint Group conducted their review consistent with the applicable provisions of the rate setting manual approved by the County for use in the Garaventa Service Area. The result of NewPoint Group's review is contained in their letter dated February 25, 2005, which is attached as EXHIBIT A. Proposed Solid Waste Collection Rate Increase Interim year rate changes are calculated based on a weighted increase in controlled and uncontrolled costs. The recommended 3.89% increase of the solid waste collection rate was calculated based on the 4.56% projected increase in uncontrolled costs, 2.04% increase in controlled costs and special extraordinary cost increases. Uncontrolled Costs Uncontrolled costs refer to tipping fees and associated regulatory charges. Garaventa Enterprises submitted an Interim Year Rate Change Application showing a projected 4.56% increase of the tipping fee (also referred to as the gate rate) at the Pittsburg Transfer Station from $52.60 per ton to $55.00 per ton. Controlled Costs 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 2.04%. Special Extraordinary Cost Increases Special extraordinary cost increases include household hazardous waste costs and worker's compensation costs. Garaventa Enterprises' Interim Year Rate Change Application identified a total of$117,238 in special extraordinary cost increases, NewPoint Group's report recommends that the County allow a total of $56,138 in special extraordinary cost increases. The below table summarizes the existing and recommended residential solid waste collection rates. MONTHLY •LID WASTE COLLECTION RATE (CR) 40-gallon container(unless otherwise noted) ExistingCR 3.89% Recommended Increase of CR CR Bay Point (portion) $ 23.80 $ $ 24.75 Brentwood $ 23.80 $ $ 24.75 B ron $ 23.80 $ -95 $ Discovery Ba $ 23-80 $ $ 24.75 Kni htsen $ 23.80 $ $ 24.75 All Areas: Mini-Can /20-gallon $ 19.25 $ .75 $ Except for the area located within Byron Sanitary District Boundary Rates are rounded to the nearest $0.05 increment in accordance with the manual requirement. The recommended 3.89% increase would also apply to commercial customers served by Garaventa under the County's Franchise Agreement. ATTACHMENTS Exhibit A—Letter from NewPoint Group dated February 25, 2005 G:\Conservation\Bryn\Franchise\Franchise-BS\GE\BO-GE Interim Year Rate Increase 2005.doc 0 NeVt/Pont Grou Exhibit A Management Consultants February 25,2005 Ms. Deidra Dingman Solid Waste Program Manager Community Development Department Contra Costa County 651 Pine Street 4th Floor,North Wing Martinez, California 94553 Subject: 2005 Interim Rate Review of Unincorporated Contra Costa County Areas Served by Garaventa Enterprises This letter report represents NewPoint Group, Inc.'s review of the 2005 Interim Year rate application(Application) submitted by Garaventa Enterprises (Garaventa) for unincorporated Contra Costa County(County). Garaventa submitted its Application to the County on November 251, 2004. Methodology County rate setting is guided by the County's 1998 Rate Setting Process and M Manual or 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. This report is organized as follows: A. Project Background B. Project Scope C. Interim Year Review Results D. Rate Recommendation. 9 2555 Third Street,Suite 215,Sacramento,California 95818 0 Phone:(91 b)442-0508 * Fax:(916)442-0714 NewPoint GrouO" Management Consultants Ms. Deidra Dingman Page 2 February 25, 2005 A. Project Background 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.2 This 7.66 percent rate increase ultimately was implemented between March and May of 2003, depending upon the County service area. The Board approved this recommended rate increase on December 17, 2002. In 2004, based on an Interim Year rate review, commercial rates were increased by an average of 11.79 percent and commercial rates were regionalized across east County jurisdictions. This increase was approved by the Board on April 22, 2004. In early 2005, Garaventa increased commercial rates in the Ironhouse Sanitary District area by approximately 5.0 percent. Unlike the County, this district does not require its Board to approve commercial rate changes. Garaventa's 2005 Application is provided as Attachment A to this letter. In its Application, Garaventa noted that both worker's compensation and household hazardous waste costs have increased substantially greater than the CPI. Garaventa requested a rate increase of.5.0 percent for residential and commercial services. B. 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 received by the County until November 29, 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 b the Count pp y y Board of Supervisors (Board), likely would be not be fully implemented before April of 2004. C. Interim Year Review Results We prepared the Interim Year Rate Change Worksheet(Worksheet, a copy of which is included as Attachment B). We used controlled and uncontrolled costs in the Worksheet consistent with those costs 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 costs. 2 With the exception of Byron which did not have a curbside recycling program. In 2004,Byron adopted a curbside recycling program and rates in Byron were increased to equal other County area rates. Also,40-gallon rates for the Oakley/Ironhouse area were set$0.20 below the regional rate because Oakley/Ironhouse instituted its HHW fee before other County areas. NewPo0nt Grou "� Management Consultants Ms. Deidra Dingman Page 3 February 25, 2005 1. Controlled Costs Controlled costs are increased by the rate of change in the San Francisco-Oakland-San Jose Consumer Price Index (CPI). In its Application, Garaventa proposed to increase controlled costs by the change in CPI from October 2003 to October 2004, or by 2.04 percent. Based on the requirement in the Manual, we agree with Garaventa's use of the October 2003 to October 2004 CPI. As shown below, the CPI increased 2.04 percent during this October to October period. Consumer Price Index as of October 2003 196.3 Consumer Price Index as of October 2004 200.3 Change in Consumer Price Index 4.0 Percent Change in Consumer Price Index 1 2.04% CPI source data is provided in Attachment C. Based on this change in the CPI, rows 10 through 12 on page 2 of the Worksheet were completed as follows: Change in Controlled Cost 10 Projected Change in Consumer Price Index 2.04% 11 Adjustment Factor from Prior Interim Year 0.00% 12 Adjusted Projected Change in Consumer Price Index 2.04% 2. Uncontrolled Costs In the Application, the tipping fee rate at the Pittsburg Transfer Station was increased from $52.60 per ton to $55.00 per ton, or by 4.56 percent. We recommend that the County allow this increase in uncontrolled costs. Based on this data, rows 13 through 19 on page 2 of the Worksheet were completed as follows: Change in Uncontrolled Cost 13 Prior Year Tipping Fees Per Ton $ 52.60 14 Plus: Prior Year Regulatory Fees Per Ton $ 15 Equals: Total Prior Year Uncontrolled Costs Per Ton $ 52.60- 16 Projected Interim Year Tipping Fees Per Ton $ 55.00 17 Plus: Projected Interim Year Regulatory Fees Per Ton $ _ 18 Equals: Total Projected Interim Year Uncontrolled Costs Per Ton $ 55.00 19 Projected Change in Uncontrolled Costs 4,56% We confirmed by telephone that this tipping fee rate is the same rate charged to self-haul customers, whose loads are weighed, at the Pittsburg Transfer Station as of January 1, 2005. A NewPoi0 nt Group,"' Management Consultants Ms. Deidra Dingman Page 4 February 25, 2005 total of six other neighboring disposal facilities also were surveyed. Tipping fee rates for self- haul weighed loads are shown below: ❑ Davis Transfer Station(Oakland)—$88.25 per ton ❑ Berkeley Transfer Station(Berkeley, over 330 pounds)—$82.70 per ton ❑ West County Landfill (Richmond, over 5 yards)—$69.75 per ton ❑ Contra Costa Transfer&Recover Station(Martinez,,, over one ton)—$62.25 per ton ❑ Pleasanton Transfer Station(Pleasanton)—$53.00 per ton ❑ .Altamont Landfill - $46.00 per ton. These rates average $66.99 per ton for weighed loads (above one ton). This survey conf rms that the tipping fee rate charged at the Pittsburg Transfer Station is below average, and approximately in the middle of the range, of weighed tipping fee rates charged to self-haul customers at other neighboring disposal facilities. 3. Special Extraordinary Cost Increases In Garaventa's Application it also indicated that household hazardous waste costs and worker's compensation costs have increased materially since the prior base year. Together,these special extraordinary cost increases amounted to Garaventa's request for an additional $117 238 q ' in costs.3 We recommend that the County allow$56,138 for these special extraordinary cost increases. While these cost increases are in addition to the rate increase allowed through the interim year process,we believe they are justifiable and supported. These cost increases, for household hazardous waste and worker's compensation costs, are discussed below. Household hazardous waste costs Table 1, on the following page, shows the amounts paid by Garaventa for the household hazardous waste program in calendar year 2004. Delta Diablo Sanitation District operates the HHW facility and bills the County directly for East County customer use of the facility(i.e., in areas other than Oakley). The County in turn bills Garaventa for a portion of this amount (identified as"County" in Table 1). Garaventa is billed directly by Delta Diablo Sanitation District for Oakley customers use of the facility(identified as "Ironhouse"in Table 1). The combined amount for 2004 $123,376 is $21,735 greater than the 2003 projection of $101,641. We recommend that the County allow this $21,735 increase. This represents a 21.4 percent allowed increase in this one line item. 3 Special extraordinary adjustments are allowed provided that the hauler can provide necessary information and documentation so the County can make a judgment as to the reasonableness of the adjustment(see page IV-1 of the Manual for this provision). NewPont Group""' Management Consultants Ms. Deidra Dingman Page 5 February 25, 2005 Table 1 East County Household Hazardous Waste Payments Made by Garaventa Enterprises Calendar Year 2004 Date County Ironhouse Total 1/1/04 to 3/31/04 a) 6,636.06 54,008.58 605,644.64 4/l/04 to 6/30/04 14,3 8 5.5 9 16,72 7.43 31,113.02 7/1/04 to 9/30/04 531702.14 71%886.15 139588.29 10/1/04 to 12/31/04 79884.09 1050146.14 1811030.23 Total 345,607.88 885768.30 1235376.18 a) Includes a mobile event for Ironhouse area which increased quarterly usage from about 150 customers to over 600 customers. While the Application also included a projected increase in HHW costs for 2004/05 based on the increase in the total HHW program budget of 16.4 percent,we did not allow this increase.4 This is based on two findings: O The actual HHW program expenditures did not closely approximate g a roximate the budget for FY 2003/04. The FY 2003/04 HHW program budget of$721,073 was much greater than the actual HHW FY 2003/04 program costs of$423,724 0 Actual fiscal year-to-date expenditures have not changed materially from the prior fiscal year. For example, • July 1, 2003 to September 30, 2003 expenditures were$66,619.83 and July 1, 2004 to September 30, 2004 expenditures were $70,724.24 • October 19 2003 to December 31, 2003 expenditures were $87,371.18 and October 1, 2004 to December 31, 2004 expenditures were $89,877.89. Worker's compensation costs In the Application, Garaventa projected increases in worker's compensation costs of 72 percent from $92,648 in the Base Year 2003 projection to $159,554 in 2004. We recommend that the County allow worker's compensation costs of$127,051 for 2004. This represents the actual amount paid by Garaventa for 2003 and is a reduction in Garaventa's request by$32,503. The $127,051 figure is an increase of 37 percent in this one line item. This is consistent with the recent increase in Garaventa's worker's compensation premium rate for garbage collectors (from a projected $15.36 per$100 of payroll in the 2003 Base Year to the 10/1/2004 level of $20.68 per$100 of payroll, a 3 5 percent increase). Likewise,the 3 7 percent increase is very 4 The total HHW program budget is projected to increase from$721,073 to$839,329 from FY 03/04 to FY 04/05. NewPont Group Management Consultants Ms. Deidra Dingman Page 6 February 25, 2005 similar to the increase in Garaventa's total monthly premium paid,which rose from$110,437 (on 10/1/2002)to a peak value of$150,501 (on 10/1/2003), an approximately 36 percent increase. We did not allow a further increase for 2004 based on the fact that Garaventa premiums have actually declined from 2003 to 2004. Further, California has made recent attempts to reform worker's compensation and there is a trend toward decreasing worker's compensation premiums.5 We recommend that during the next Base Year,the County take another close look at worker's compensation costs. D. Rate Recommendation Based on using the weightings and indices in the Worksheet(rows 20 to 30), the recommended rate increase is 3.89 percent to residential and commercial customers. The corresponding residential rates,rounded to the nearest$0.05 increment are shown below in Table 2 (and on the first page of the Worksheet). Table 2 Recommended Residential Rates Adjusted New Rate Schedule' Current Rate Rate Adjustment Rate '2. Bay Pbint-40 gallon $ 23.80 $ 24.73 $ 0.02 '3. Brentwood-40 gallon $ 23.80 $ 24.73 $ 0.02 p4. Byron Sanitary District-40 gallon $ 23.80 $ 24.73 $ 0.02 % Discovery Bay-40 gallon $ 23.80 $ 24.73 $ 0.02 'F6. Knightsen-40 gallon $ 23.80 $ 24.73 $ 0.02 'F7. konhouse Sanitary District-40 gallon2 $ 23.60 $ 24.52 $ 0.23 '8. All Areas-20 gallon $ 19.25 1 $ 20.00 $ - 'For 90-gallon toter service,an additional$3 per month is added to the 40-gallon rate. 2lronhouse rates have been adjusted to equal rates in the other service areas as the costs and services are now the same for all service areas. Additionally, Ironhouse's relative usage of the HHW facility has increased recently. 5 Workers'compensation premiums have dropped an estimated 10.4 percent between the middle of 2003 and January 2005(see Workers'Compensation in California summary from the Institute of Governmental Studies University of California at http://www.igs.berkeley.edu/library/htWorkersCompensation.htrn#Topic4). NewPo�nt Grog . Management Consultants Ms. Deidra Dingman Page 7 February 25, 2005 Should you have any questions regarding this letter report,please do not hesitate to contact Erik Nylund in Oakland at(510) 338-0104. Very truly yours, NewP6*int Grou / Inc; ?12 Jim Gibson, Director NewPoint Group- Management Consultants Ms. Deidra Dingman Page 8 February 25, 2005 Attachment A Interim Year Rate Application jo GamVenu En Apo *' CONCOAD,MFf RNIA 94620 .,c l 1_ bf Up •�:.� C-rs111ft CI 1M. ' y � vel Depotwit 61.51 Pum St., r,I V Maliam CA 94553-0095 Novel 2S.2 Interim'Raft AWfic, n Dev:M& Ec sed:i 1w Year + p n for a t e fww' Iaed ares r unrxatad ant Ate' RateP ro mawdfo Soft : r a e es e p cat h p fir��s n comd1 rl. and nt t wi"� v+s ttterim Yea Raft: la 'Worrksheet r.y.oiler e0 ari%�. 11U. results Indy anim-of 5.0616 for the res ide W. 1 aid aite The Interim You Rift Application, �ddri�s to other arms ofco st conmm:kr Caravel Earl , WO& �� W the I . 'waste 1 i c sed i ant I1 mater ft ThM two s� s� p the rates App"m ear Ma The:resin' Ing mtware a l r Ou.i ul re ► des proposW gointoiff F 1 2005. As always,if you have.any quem.io pkau do wt hesWe to X11 at('925)682-1148 SI=M1y$ x_. Ckrk Colvis FO NeWPolnt Groupr; Management Consultants Ms. Deidra Dingman Page 9 February 25, 2005 Attachment A Interim Year Rate Application (continued) n enm Year Rate Chin Icat �a cog. I �YON 7"fenWTon -Y FWTvn: 3 pft, Ekwo i1mviaw W--cow:F* 4 i "AW"YONT4*V Fen. Ton 56AO.Yew . .2 Ph*Kftp'WOrf ROwn 'ShAIW Rd*AppkWW HbHUMOKOWOW1t 8+t1 F .:. Tom Rte; 2: 1 +amm wt P"N'kWw$.* t3 �! � 'b�e at Mit COnMOW Pftt Wax+lay.d 100=4 ChaVCPI dIn ft C 't'oa 1 tf ffN krxm4SdpW:#* t 1 tatr an A XI-W1,110.amara* 'aar aorta t OVOW by On Civ s N: Owk Cdwb Tk CFO ,,.,. owe.. !U250004 yw: 4 NewPont0 Group- Management Consultants Ms. Deidra Dingman Page 10 February 25, 2005 Attachment A Interim Year Rate Application (continued) Caft C41"CW* Y. � t Chap Wohee rks *Y"r Cwwoftd Coft 4 Agow TIM, 04"NOl .T ': ' .1-34M. .::.. . 0-7 SO"awfft-Foe irrr .O> Cost- t2 Pdw Yew T40FwParTan .Q 40 051100 17 p ' tnr 4. . . :, 20 Pf 21 4ht".ChanWin UncoftbiCOU' 22 CA - .... .. ... Chun 25 :Tow POMWO'Chs. In cow 27 P*Mmt In bib"Rttft 28 29 'SOW�# InCkx* 4.75 ToW CadAdjw6nwt Lj TOW Re": an U 62 Yer:2Ut p ,� . NewPoint Group Management Consultants Ms. Deidra Dingman Page 11 February 25, 2005 Attachment A Interim Year Rate Application (continued) .. . ........... ----------- ------------------------------- interim Y.... r RateChange Wo� � AV—W-fto 916— WOW? ------------------ ............. --------- .. 01641 X51,9 e m h 5O � Nir' vv . AChW 003 W OMpG1*w- t Ctxw S%554 (4906s. ;+ " ivitinim InOConmdat115$801 fiASvenue $A25#434 �yrw.�wwMr�Mw�w� i 1t2004 �,.: NewPolnt Grow . Management Consultants Ms. Deidra Dingman Page 12 February 25, 2005 Attachment A Interim Year Rate Application (continued) .. ............ Inteft Year Rate Changolion ....:.... .....:.....: W am Swvft" UZI « . 3 VOW bb:b ,`A 2'wd W 3xWk I Vwd bft 4WWk •. 2void:bin tC ... 3."W.binsWAD Wift 3 vw lain 36A'Vk t #: 3 vwd blw �. i 0 NewPont Grog � Management Consultants Ms. Deidra Dingman Page 13 February 25, 2005 Attachment A Interim Year Rate Application (continued) S .0, 40 0.- 40 I* Aa .40 46, Aft 0.0 too W An .2v .(0 '0 % 0* et low:104 tn > tj is W N. A0 .AA 0 tn 10: --------------- 4-6- A. Ow C-4 Cr 0 AA :*A*,: 40, C 0 V VV -to .0 W. Ak A& W AD NJ 15 I" tout Ao. W *4 %41 In. (A (A .moi► ......... cc 1#4 0 4�1 U) �fl N Ni. C6. w **j NJ 00 So. S 4b W. 40.10* NO t44 4" qw*. x tj NewPoint Group"-5 Management Consultants Ms. Deidra Dingman Page 14 February 25, 2005 Attachment B Interim Year Worksheet Contra Costa County Interim Year Rate Change Worksheet Summary Rate Change 1. Percent Change in Rates Requested 3.89% Rate Schedule Adjusted New Rate Schedule' Current Rate Rate Adjustment Rate 2. Bay Pbint-40 gallon $ 23.80 $ 24.73 $ 0.02 3. Brentwood-40 gallon $ 23.80 $ 24.73 $ 0.02 4. Byron Sanitary District-40 gallon $ 23.80 $ 24.73 $ 0.02 5. Discovery Bay-40 gallon $ 23.80 $ 24.73 $ 0.02 6. Knightsen-40 gallon $ 23.80 $ 24.73 $ 0.02 7 lronhouse Sanitary District-40 gallon2 $ 23.60 $ 24.52 $ 0.23 8. All Areas-20 gallon $ 19.25 $ 20.00 $ - 'For 90-gallon toter service,an additional$3 per month is added to the 40-gallon rate. 2lronhouse rates have been adjusted to equal rates in the other service areas as the costs and services are now the same for all service areas. Additionally, Ironhouse's relative usage of the HHW facility has increased recently. Year: 2005 Page 1 of 2 NewPoint Group," Management Consultants Ms. Deidra Dingman Page 15 February 25, 2005 Attachment B Interim Year Worksheet(continued) Contra Costa County Interim Year Rate Change Worksheet Financial Information SectionCosts Base Year Controlled Costs 1 Total Operating Costs $ 4,915,181 2 Plus: Allowable Operating Profit $ 345,163 4 "nus: Tipping Fees(Profit Allowed) $ 1,340,240 5 Equals: Total Controlled Costs $ 3,920,104 =3016 Base Year Uncontrolled Costs 6 Tipping Fees(Profit Allowed) $ 1,340,240 7 Plus: Tipping Fees(Pass Through) $ 163,807 8 Equals: Total Uncontrolled Costs $ 1,504,047 27.7% 9 Base Year Revenue Requirement(Less Franchise Fee) 1$ 5,424,1511 100.0% Section 11--Changes in Costs Change in Controlled Cost 10 Projected Change in Consumer Price Index 2.04% 11 Adjustment Factor from Prior Interim Year 0.00% 12 Adjusted Projected Change in Consumer Price Index 2.04% Change in Uncontrolled Cost 13 Prior Year Tipping Fees Per Ton $ 52.60 14 Plus: Prior Year Regulatory Fees Per Ton $ - 15 Equals: Total Prior Year Uncontrolled Costs Per Ton $ 52.60 16 Projected Interim Year Tipping Fees Per Ton $ 55.00 17 Plus: Projected Interim Year Regulatory Fees Per Ton $ - 18 Equals: Total Projected Interim Year Uncontrolled Costs Per Ton $ 55.00 19 Projected Change in Uncontrolled Costs 1 4.56% Section • of Weighted Change in Controlled Costs 20 Controlled Costs as%of Base Yr.Revenue Requirement 72.3% 21 Multiplied by: Adjusted Projected Change in Consumer Price Index 2.04% 22 Equals: Weighted Change in Controlled Costs 1.47% Weighted Change in Uncontrolled Costs 23 Uncontrolled Costs as%Bae Yr.Revenue Requirement 27.7% 24 Multiplied by. Projected Change in Uncontrolled Costs 4.56% 25 Equals: Weighted Change in Uncontrolled Costs 1.27% Unweighted Change for Other Allowed Cost Increases 26 Unweighted Change for Extraordinary Costs0.96 0 27 Equals: Weighted Change in Uncontrolled Costs 0.S Total Change 28 Total Percent Change in Costs 3.70% 29 Divided by. Adjustment for Franchise Fee(1-5.0%) 95.0% 30 Equals Percent Change in Existing Rates 3.89% NewPoint Group' Management Consultants Ms. Deidra Dingman Page 16 February 25, 2005 Attachment C Consumer Price Index San Francisco-Oakland-San Jose, CA,All items '140, WAR] 147.5 147.4 148.2 148 148.3 148.1 148.9 149.4 149.4 149.4 149.8 149.4 148.7 147.9 149.4 .............. ...... ......... -- I . ......... ..................... . ......................... ...... ......... .......... .......... ....... .......... . ................ ....... .................. ........... ................. 74 ...... 97;15 3.9 155.1 A �44 1]55i" 7 3 152.9 153.2� 152. 155.2 155.9 155.6 156.3 156.9 156.9 156 155.1 153.9 156.3 ............ .......... ...... z ... ........ ................................ ............. ....... ........... IMS :7 ....... 7 77 163.2 164.6 165.5 166.6 167.2 167.4 165.5 164.2 166.9 ..................L.,-.-6-...V.....',... ............ i4l: ... ...- 74. ............... '75*. 70 2 69' 3 ....... 7 7 . ......-..... ........... 178.7 179.1 181.7 183.4 184.1 180.2 177.7 182.6 ............. ......... .......... ISO 1-911 0 9 9 191.3 193 193.2 193.5 194.3 193.2 193 192.3 193.7 ............. ........... .............. '06*4 ........... .6 197' 7 .......... 198.1 198.31 1991 198.7 200.3 1 198.81 198.21 199.51