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Home My WebLink AboutMINUTES - 05162006 - D.4 =,E_ Contra TO: BOARD OF SUPERVISORS A (;OSta FROM: Dennis M. Barry, AICP °°s�,•-.___..��y� County Community Development Director A °°°nom` COU ./my DATE: May 16, 2006 4 SUBJECT: 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 March 31, 2006 regarding their review of the Interim Rate Application submitted by Garaventa Enterprises (EXHIBIT A). 2. APPROVE recommended increased solid waste collection rates for residential and 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 Oakley (portion**) Discovery Bay Knightsen * Portion of Bay Point falls within the area served under the County's Franchise with Pleasant Hill Bayshore Disposal ** Portion of Oakley falls within the area controlled under the Ironhouse Sanitary District Franchise The County's Garaventa Service Area includes portions of Supervisorial Districts III 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 ✓RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD CO ITTEE w--`APPROVE OTHER SIGNATURE(S): ACTION OF BO ON /G APPROVED AS RECOMMENDED ?00 R VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT/t4yc.e— AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AMaJENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Contact: Deidra Dingman (925/335-1224) ATTESTED �l1 cc: Community Development Department (CDD) joHyZuLLEN, CLERK OF THE County Counsel – L. Fujii BOARD OF SUPERVISORS AND Garaventa Enterprises (via CDD) COUNTY ADMINISTRATOR BY , DEPUTY G:\Conservation\Bryn\Franchise\Franchise-BS\GE\BO-GE Interim Year Rate Increase 2006.doc Changes in Commercial Solid Waste Collection Rates Charged by Garaventa Enterprises May 16, 2006 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. The result of NewPoint Group's review is contained in their letter dated March 31, 2006, which is attached as EXHIBIT A. 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 and the results of this review are detailed in Section C of their letter. Additionally, NewPoint Group reviewed Garaventa's proposal to increase only commercial rates and the results of this review are reflected in Section D of their letter. The Consumer Price Index (CPI) is used to help calculate Interim Year Rates. The CPI increased by 2.8% between October 2004 and October 2005. The Rate Setting Manual requires the annual change in the CPI to be used. The projected change in CPI reflects a minor adjustment in order to maintain consistency between interim years. Because there was a discrepancy in the projected CPI increase in 2005 and the actual increase, an adjustment factor was applied resulting in adjusted projected change in CPI of 3.56%. This calculation is outlined in greater detail in Section 1 of NewPoint Group's letter,(EXHIBIT A). Special extraordinary costs, including household hazardous waste (HHW) costs, are also considered in the rate analysis. The rate increase approved last year provides for annual HHW cost of $123,376.18. The actual 2005 HHW costs were lower than projected and therefore NewPoint Group adjusted for the difference in this Interim Year. This adjustment is reflected in a 0.62% reduction in the rate change. History of Solid Waste Collection Rate Increases Below is a brief summary of rate increases approved by the County over the past several years in the Garaventa Service Area: 2003: Base Year Rate Application resulted in average residential & commercial rate increase of 7.66% and residential rates were standardized 2004: Interim Year Rate Application resulted in increase of commercial rates by an average of 11.79% (actual increases ranged between 2% - 25% depending on the level of service) and commercial rates were standardized 2005: Interim Year Rate Application resulted in residential and commercial increase of 3.89%. Proposed Solid Waste Collection Rate Increase Garaventa has proposed to only increase their commercial rates in their unincorporated service area in this Interim Year without increasing residential rates (see Option 2 below). Staff does not recommend approval of this commercial only rate option because it is not consistent with the approved Rate Setting Manual. NewPoint Group included the proposed commercial only rate increase in their review and this rate increase scenario is included below as Option 2 to provide the Board of Supervisors with adequate information to approve commercial only rate increases if so desired. OPTION 1 - Increase Residential & Commercial Rates (RECOMMENDED) Interim year rate changes are calculated based on a weighted increase in controlled and uncontrolled costs. Special extraordinary costs increases are also taken into account. Based on using the weightings and indices consistent with the County approved Rate Setting Manual, the required rate increase would be 2.69% to both residential accounts (about 8,000 customers) and commercial accounts (about 400 customers). The recommended 2.69% increase of the solid waste collection rate was calculated based on projected increase in uncontrolled costs (tipping fees and associated regulatory charges) and increase in controlled costs. Garaventa's Interim Year Rate Change Application shows a projected increase of the tipping fee (also referred to as the gate rate) at the Transfer Station in Pittsburg. Controlled costs are adjusted based on the change in CPI. G:\Conservation\Bryn\Franchise\Franchise-BS\GE\2006 Rates\BO-GE Interim Year Rate Increase 2006.doc Changes in Commercial Solid Waste Collection Rates Charged by Garaventa Enterprises May 16, 2006 Page 3 The below table summarizes the existing and recommended residential solid waste collection rates. Monthly Residential Solid Waste Collection Rates Level of Service Existing 2.69 % Increase in Recommended Collection Collection Rate Collection Rate Rate (Option 1 20-gallon can $20.00 $0.55 $20.55 40-gallon can $24.75 $0.65 $25.40 95-gallon cart $27.75 $0.75 $28.50 The existing and recommended commercial solid waste collection rates are summarized in the table below. Monthly Commercial Solid Waste Collection Rates Existing 2.69 % Recommended Level of Service Collection Increase in Collection Rate Rate Collection (Option 1) Rate 2 yard bin 1 x week $205.20 $ 5.50 $210.70 2 yard bin 2 x week $368.85 $9.90 $ 378.75 2 yard bin 3 x week $ 532.50 $ 14.30 $ 546.80 2 yard bin 4 x week $ 696.15 $ 18.70 $ 714.85 2 yard bin 5 x week $859.80 $23.15 $882.95 3 yard bin 1 x week $286.75 $ 7.70 $294.45 3 yard bin 2 x week $ 534.00 $ 14.35 $548.35 3 yard bin 3 x week $781.25 $21.00 $802.25 Commercial Cans $28.30 $0.75 $29.05 Commercial Toters $49.35 $ 1.35 $ 50.70 More detailed information regarding the proposed increases in commercial and residential rates for Option 1 are shown in EXHIBIT B. EXHIBIT B also includes average rates in the County as well as the numbers of customers potentially impacted (by community and level of service). OPTION 2 - Increase Commercial Rates (NOT RECOMMENDED) As mentioned above, Garaventa has proposed to only increase their commercial rates in their service area under the County's Franchise in this Interim Year without increasing residential rates. 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 proposed commercial rate increase would result in rates between 4.36 - 12.57% higher than current rates, depending on the service level. A summary of the existing and alternative proposed commercial rates is found below. Monthly Commercial Solid Waste Collection Rates Existing 4.36-12.57% Alternative Level of Service Collection Rate Increase in Collection Rate Collection Rate (Option 2 2 yard bin 1 x week $205.20 $25.80 $231.00 2 yard bin 2 x week $368.85 $46.15 $.415.00 2 yard bin 3 x week $ 532.50 $ 66.50 $ 599.00 2 yard bin 4 x week $696.15 $86.85 $783.00 2 yard bin 5 x week $ 859.80 $ 107.20 $ 967.00 3 yard bin 1 x week $286.75 $35.75 $ 322.50 3 yard bin 2 x week $ 534.00 $ 66.50 $600.50 3 yard bin 3 x week $781.25 $ 97.25 $ 878.50 Commercial Cans $28.30 $ 2.20 $ 30.50 Commercial Toters $49.35 $ 2.15 $ 51.50 G:\Conservation\Bryn\Franchise\Franchise-BS\GE\2006 Rates\BO-GE Interim Year Rate Increase 2006.doc Changes in Commercial Solid Waste Collection Rates Charged by Garaventa Enterprises May 16, 2006 Page 4 More detailed information regarding the proposed increases in commercial rates for Option 2 are shown in EXHIBIT C. EXHIBIT C also includes average rates in the County as well as the numbers of customers potentially impacted (by community and level of service). ATTACHMENTS Exhibit A—Letter from NewPoint Group dated March 31, 2006 Exhibit B—Option 1 Ratejable (Existing Rates and Proposed Rates) Exhibit C—Option 2 Rate Table (Existing Rates and Proposed Rates) G:\Conservation\Bryn\Franchise\Franchise-BS\GE\2006 Rates\BO-GE Interim Year Rate Increase 2006.doc • EXHIBIT A 'NewPoint Group","' Monogemenf`Consuftants March 31, 2006 Ms. Deidra Dingman Solid Waste Program Manager Community Development Department Contra Costa County 651 Pine Street 4`h Floor,North Wing Martinez, California 94553 Subject: 2006 Interim Rate Review of Unincorporated Contra Costa County Areas Served by Garaventa Enterprises This letter report represents NewPoint Group, Inc.'s review of the 2006 Interim Year rate application (Application) submitted by Garaventa Enterprises (Garaventa) for unincorporated Contra Costa County (County). Garaventa submitted its Application to the County on February 23, 2006. County rate setting is guided by the County's 1998 Rate Setting Process and Methodology 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. Oakley(except for the area located within Ironhouse Sanitary District boundary) 4. Discovery Bay 5. Knightsen (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 Recommendations. 2555 Third Street.Sure 215 5acramerito;California 95818 Phone-,(916)r442-0508,9 Fax 016)442-0714- NewPoint Group° Monagernent Consultant§ Ms. Deidra Dingman Page 2 March 31, 2006 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.' 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 2005, based on an Interim Year rate review, rates were increased 3.89 percent. This increase was approved by the Board on April 12, 2005.3 Garaventa's 2006 Application is provided as Attachment A to this letter. In its Application, Garaventa indicated that the County's methodology would call for a 1.81 percent rate increase to both residential and commercial rates. Garaventa also made a proposal in its Application to apply the Interim Year rate increase to commercial rates only. B. Project Scope Our review was conducted consistent with the 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 February 23, 2006. 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 May or June of 2006. 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. Z In 2004,Byron adopted a curbside recycling program and rates in Byfon 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. 3 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. NewPoint Grouo�' Management Corisilt nts. Ms. Deidra Dingman Page 3 March 31, 2006 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 2004 to December 2005, or by 1.55 percent. Based on the requirement in the Manual, the CPI the County is required to use is the"annual change in the CPP' (page V-11). As shown below, the CPI increased 2.80 percent during the October 2004 to October 2005 period. Consumer Price Index as of October 2004 200.3 Consumer Price Index as of October 2005 205.9 Change in Consumer Price Index 5.6 Percent Change in Consumer Price Index 2.80% CPI source data is provided in Attachment C. We recommend that a one-year CPI period be used in order to maintain consistency between interim years. We do not recommend that the County,adjust this one-year convention based on the timing of the Application's submission. The Based on this change in the CPI,rows 9 through 11 on page 2 of the Worksheet were completed as follows: Change in Controlled Cost 9 Projected Change in Consumer Price Index 2.80% 10 Adjustment Factor from Prior Interim Year 0.76% 11 Adjusted Projected Change in Consumer Price Index 3.56% There is a prior year adjustment factor used. In previous Interim Year review, the projected change used for the 2005 CPI was 2.04 percent. The difference between this projected change in the 2005 CPI, and the actual change in the 2005 CPI, is 0.76 percent(2.80 percent less 2.04 percent). This is used as the adjustment factor. 2. Uncontrolled Costs In the Application, the tipping fee rate at the Pittsburg Transfer Station was increased from $55.00 per ton to $56.20 per ton, or by 2.18 percent. We recommend that the County allow this increase in uncontrolled costs. Based on this data, rows 12 through 18 on page 2 of the Worksheet were completed as follows: 4 The CPI convention for interim years has been the October to October period. 5 The equivalent of a 14-month period. Note that the CPI decreased from October 2005(205.9)to December 2005 (203.4). The most recently available CPI data as shown in Attachment 3 shows is February 2006 index(207.1). NewPoint Group Manggement Consultants;;. Ms. Deidra Dingman Page 4 March 31, 2006 Change in Uncontrolled Cost 12 Prior Year Tipping Fees Per Ton $ 55.00 13 Plus: Prior Year Regulatory Fees Per Ton Is 14 Equals: Total Prior Year Uncontrolled Costs Per Ton $ 55.00 15 Projected Interim Year Tipping Fees Per Ton $ 56.20 16 Plus: Projected Interim Year Regulatory Fees Per Ton is - 17 Equals: Total Projected Interim Year Uncontrolled Costs Per Ton $ 56.20 18 Projected Change in Uncontrolled Costs 2.18% A total of six other neighboring disposal facilities were surveyed. Tipping fee rates for self- haul weighed loads are shown below: O Davis Transfer Station (Oakland)—$89.25 per ton 0 Berkeley Transfer Station(Berkeley)—$89.30 per ton O West County LandfilUTransfer Station (Richmond)—$75.25 per ton O Contra Costa Transfer& Recover Station (Martinez)—$62.25 per ton O Pleasanton Transfer Station (Pleasanton)—$53.00 per ton O Altamont Landfill - $48.50 per ton. These rates average $69.59 per ton for weighed loads. This survey confirms 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. Extraordinary Household Hazardous Waste Cost Changes In the 2005 Interim Year review,the County allowed an extraordinary increase in household hazardous waste (HHW)program costs. The increase amounted to $21,735, which put estimated year 2005 HHW program costs at $123,376.18. The County reports that actual year 2005 HHW costs were $89,719.23. As these costs are known and extraordinary, we have adjusted for the difference of$35,656.95 ($123,,376.18 less $89,719.23) in this 2006 Interim Year. This difference represents a 0.62 percent reduction in the rate change and is shown in lines 25 and 26 of page 2 of the Worksheet. Weighted Change in Extraordinary Costs 25 Weighted Change for Extraordinary HHW Costs 26 Equals: Weighted Change for Extraordinary HHW Costs -0.62% NewPoint Group' Monagement Ccnsultgnts.:. Ms. Deidra Dingman Page 5 March 31, 2006 D. Rate Recommendations Based on using the weightings and indices in the Worksheet (rows 19 to 29),the recommended rate increase is 2.69 percent to residential and commercial customers. The corresponding residential rates, rounded to the nearest$0.05 increment are shown below in Table 1 (and on page 1 of the Worksheet). The rate increase represents a $0.65 per customer, per month, increase to 40-gallon customers and a$0.55 per customer, per month, increase to 20- gallon customers. All customers pay an additional $3 per customer, per month, for a 90-gallon toter rental. This recommended rate increase is greater than the 1.81 percent increase indicated by Garaventa in its Application. This difference is largely based on our strict adherence to the Manual's requirements for completing the Interim Year Worksheet. Table 1 Recommended Residential Rates Rate Schedule Adjusted New Rate Schedule Current Rate Rate Adjustment Rate r2. Bay Point-40 gallon $ 24.75 $ 25.42 $ (0.02) $ `25`.40 r3. Brentwood-40 gallon $ 24.75 $ 25.42 $ (0.02) ,$ 25.40 r4. Byron Sanitary District-40 gallon $ 24.75 $ 25.42 $ (0.02) `'$" '25.40 r5. Discovery Bay-40 gallon $ 24.75 $ 25.42 $ (0.02) "$77 25.40 r6. Knightsen-40 gallon $ 24.75 $ 25.42 $ (0.02) 's$ .,25.40 r7. Ironhouse Sanitary District-40 gallon $ 24.75 $ 25.42 $ (0.02) $` 25.40 r8. All Areas-20 gallon $ 20.00 $ 20.54 $ 0.01 `f$^ 26.55 Alternative Interim Year Option Involving Commercial Rates In the Application, Garaventa provided the County with an alternative calculation to meet the revenue requirement for this Interim Year. This alternative calculation involves increasing commercial rates only. The resulting rate schedule proposed by Garaventa is shown on Page 3 of 3 of the Application. b Should the County elect to pursue this option, we have calculated a revised commercial rate schedule which meets the recommended revenue requirement for 2006 (i.e., provides the equivalent revenue as the 2.69 percent increase noted above does).' This schedule is provided in Attachment 4. Under this option, commercial rates would increase between 4.36 percent and 12.57 percent, depending upon commercial rate category. 6 Proposed commercial rates would increase between 3.3 and 8.4 percent. 7 Resulting in an increase in commercial revenue for 2006 of$155,257. a New'6int Group" Management Consiltants`. Ms. Deidra Dingman Page 6 March 31, 2006 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, NewPont Group Inc: Jim Gibson, Director NewPPint Group"' M66606rrent Consultcnts Ms. Deidra Dingman Page 7 March 31, 2006 Attachment A Interim Year Rate Application b S aral t � z MCLAF D f+ � # '�'a bd n51 ary zgs L' t Wu 11 a a L Ms.Deidra'.13ingman,Solid Wac e:I'rogram Manager 'a R Contra,Costa Couniy Com sunity I3evelopment Uepartihent 651 Pine St;A Flt df North ing ' Martinez,CA 94553 (}095' R2, s F6bruary 23, 2006 7. Y t Y k kn lam: Interim hate Applicatton ' k � g eax s Dzngtnan: Enclosed is an Zntezizn'Year hate Application for;G� Eripgr sc franchisers areas ganfor unincorporated Contra Costa-County "As per the Rate Setting_Process Manu for olid Wash Charges,we have coinpltitcd the application Rage forehanesin controlled, and uncontrolled costs 1Ue have also completed thi Interim Year Rate Giiange Fx p',Worksheet,for your"ccinvetiicnec ,The results would indicate.an increase of 1 81%o for the, residential and coixoinezcial rates TApn We.vvotdd like to propose applying-tlic entire intenin rate to the commercial rafts and not xnireasing the residential r:is. 7the resulting cainitiercial-fates aic stotl comparable to E oilier arias, iitd this will keep residential=rates static We have included tht number of cornmerctl units with the corresponding,srvit e level alcing with thi proposed coinfnertial rates.:`the resulting"revvenuo increase is tual;to the iitenm increase 4t1e would.re ectfu3l re nest the rails r`a osed '7o into efifect Ma I,2006 A P y 9 P. ..p y al ,rays,if yo have any questions 016 c"; NewPoint Group" Management Consultants Ms. Deidra Dingman Page 8 March 31, 2006 Attachment A Interim Year Rate Application (continued) XX Contra Costa County , ;' Interim`Year Rate Ch6n Appilcatlon MrIm, , . Changs in Uncontrotlecf Cost y i t'r+or Year Tipping Fees'per Ton $ -55:00 2 Pigs i Year fZeulatory Fees PerTtirf $ 3 Egaais, Tatat t'nrrr YeaE Uncontrotieif Casts:Per Ton $ 85:00 4 Ptote Sed Interim Year Tipping Fees t'er Ton: $ 5ti 20 5 Pius - Prujecteci interim Year Regutatonr Fees per, 6 Equals: To#ai PrOjectOjnWrn Year tjnconlrolled Costs Per Ton.- 7 on 7 eral L Cha,ngeiJri"Uimontrgiled Costs .2.1895 k .1,.# f,8 5 r Tipp i.Vfee rats have been'annuat CE�i increases as per contrail vutth the disposat sde The rate m the last Interim r, Year t2stq! plmatcon was$5500 per ton,based on Upptr g fees in 2045 The Protected Intenm reteJs the UppfngMfee etfectiveiApnt 1 21305 C .4� e Consurner Pace index as of14t34/0d; 200;3 {effer ire base of last rate adjustment) Consutrr tinea Inde as of�lt3tro5 4&4 Change rn GPt : 31 95 range in the GPI 1.5596 v Tr To the best of my,tc viedge tha data appficaton is rxxnp►ete a'=rale and consistent wrth� she anstnu Ions prouttfad tfiu Contra C exsts Crntnfy lame Clark'Cc NWS, Tide CFt? S gnatureDate 2Y22l24 " x Year','20tI6 Paget bf 3 - om NewP(A Group' ,Management C6nsultcnts Ms. Deidra Dingman Page 9 March 31, 2006 Attachment A Interim Year Rate Application (continued) -Contra Costs Giuniyr . intrNm ` ear,Rate Chane Worksheet ';`inancta!`lnfoiriiation, ease Yeer.Co>ttrolieti Costs ?• Tatat 4ating GOStS $- 4,915,1 2 Ptus AtkriiteltTle Oper�tit�g Prclfift21 5' 345§163 3, hRftrtaS.. Ti n9 t%ee5{t?rOftt+'tVttrwe $,.1.3.40:240 z a Equals Total GQitWwd.Gosts $ 3920104 72 396 Base Yesr Untontroilsd Casts ' 4 84A 5 Tipplrg.Fe s�PraftAtlowad} 5+ .,1 340'240 6 Flus. TiP}sclg ees.(PassThrotsyh} = 3:.: `163;807. s 7 Et eiS 'Totai,t#no6r06tied Casts $'; 1 504;047, 27 796 8 t3ase Year idevenue ltagat�remetit{L fnsnt htse'Fee} $ 5 424;151 100 0% Cttiarrge tri;Gtontratled Gast 9 PrnteGlled Ctiarnte in.Gonsurner Prim Bndex 1 55% xi. s it3 AU s1ms1 Faces fern Prim`Bnten'rn Year 3 0 1,1 Adjusted Projat#ed Change in Consuaw,phoe Index Gliarx�g`in Uncontrcafied GOst , i2 _ Prix Year Tipprng Fens Perron $ 55 00 t Rixrt Yf iiia Fees Per Ton 74 ,: i qunts Total Prig Yr Urlixartrallect Casts Per Ton 3 , =-55 00: 15 Proms tntenm Year't7pgrng?Fea9 Per T- i6,`- ::Flus tnt8rim:Yearft ""utato F�s'PerTan 5 . F ;"t l Fqueis Tali Proceed trltexim Year UrlCont altei Gusts Per=Ton 78 Prof Gtiange tin Uneantrolted GoSts 218% s Weighted Chang=e in Controlled, M Ccmtrled Cass a;°6 ai 8<xs 3 Yr.Revenue Requirement 72 3% �,: etkr Je i b C e l _Gonsunw Price lndex 1.554b 2r ;Equs A' Weighted GB'rar m GontrotEed Casts 1 1296 We ig"Change in'tlnccXrtti lis t Costs 22 s tJtrCrxtie t loci GaAs SS%Base Yr Rjvdnue ReGu;rement 27 7% 23 40ed b t � C � iit"Un�iitrot#etf casts-. 24Weigtt Gtaan ,in Unoanhalled Costs 060% Tatar Change 5' Towt Percent change rn Gash 1 72% ` 28 !}'nit"ChaiibY: 3 Atljttstrttsifcr`FYsnch`rse:Pe ;(1.5.096}..; :w' 950%;.:..... z Squats Pet'Cs[ti# 16OW169'Nktis a r: 28 Adjusted, ase Year Revenue RequFrernent{Less Fri ise Fea} ffi'S 754"824 28„ hAit0i Yedby TotaiPgein•Gosts, . Tota€Gost�d�testrr?en' '.S:X98;182- ? Ctivixled y: .}ydlusim ntia ffar ttfse Fee(1-5.0%) 9&096 Totat Revenue ShottfaE! .1o4,4oz ' Year 2006__ NOWPoint Group'"`' ;ManaId. m6nt`Cansultants Attachment A Interim Year Rate Application (continued) ,C6nfr'a CQSfH.�Uur11+�.--� : x _ •. Interim Year`RateA Change Wc� h:' C irrirnercral'RatOJ 1644 rare. M o3.2M6106-, Current Bay'Point Oakley BrentwoodfByron Discovery 1 nvel'trf.5arvice Raites O o1.Custorners O of,(usttircrs O oL,Custamers .,it'of"Custiamers tti bin I x week, E205.20 M,,KV' x 1:13 72t 1 rd bin's^x-wk_" 3i38S =0_ SLS 1# 7 2, rd bin 3 x svoek: s5=50 IT 2JbirwA x k �6 ` . 0 '1 �iaf"bin';S x w6 ' 5869.80- 0" 0 3- bin 1)OA a " 4286.7ffi, 3 rd bin 2 x week;i S6 d.011." 1.` 3 1 3 rd din 3 x+eek $76125 ^; s , &. Commeraat Cans $26 30 231. "21 T 2 Corr tencial Toters .363 -SS , 14 1'4 z AS Totaf Current Ptofecberi" Piroposed Proposed 1s*rattt#Servlte Cusfofseers ,.,Retes. Revenue".`, fiat :Revenue rti bitr 1 x Week", 204 " $205 20'.6 $502' 30. 5222x60. 5544`680: bin 2x creek 38 Y8:8$: 5168136d{1a:00 '$182,400 rd bin�3!n ,.... ;..:31 w 532:60;` :5198;030 5877:50, �$214y830' 2 yard Un 4 x wok 7 :",$696:18;;` $58;477 jT55 00 583;420: rr3ttiri'Sre"wok'' 3 MAOp$932180 833`570: bin 11 X'Week „24 528S:TS'R. -:582;584,.. 5319:50yam . 589;712. 3 rd bin 2 x week 'S 1$534&1": S32'O+SO_ 4578;00 $34;880 tin 3 x week 9 T $781.2C, mm l Cans'., ., , 255____.. 428-10"' '`'$M598, , '$30:00 _ 591 800's Corrimari al Tota l' 139 R! S49 35;[,.. :;582,316 #51:00 :581088'. t Tota>u $1,325.957 _$1431.368' , Hz n Year.- 2006. L ..., Page:3 of 3 N awPoint Group." M�n6gerrent,CcnsultCgts Ms. Deidra Dingman Page I I March 31, 2006 Attachment B Interim Year Worksheet Contra Costa County Interim Year Rate Change Worksheet Summary Rate Change 1. Percent Change in Rates Requested zss�ia In I Rate Schedule Adjusted New Rate Schedule' Current Rate Rate Adjustment Rate 2. Bay Point-40gallon $ 24.75 $ 25.42 $ (0.02) $ 254i? 3. Brentwood-40 gallon $ 24.75 $ 25.42 $ (0.02) $ 254Q 4. Byron Sanitary District-40 gallon $ 24.75 $ 25.42 $ (0.02) $ 274 5. Discovery Ba 40 gallon $ 24.75 $ 25.42 $ 0.02 �$ 254D 6. Knightsen-40 gallon $ 24.75 $ 25.42 $ (0.02)1$:W,2, 7. Ironhouse Sanitary District-40 gallon $ 24.75 '$ 25.42 1 $ (0.02) ffi 25.40 8. All Areas-20 gallon $ 20.00 1 $ 20.54 $ 0.01 -2 1 'For 90-gallon toter service,an additional$3 per month is added to the 40-gallon rate. Year. 2005 Page 1 of 2 NewPoint GrOup': Managemenf C6nsultanfs.: Ms. Deidra Dingman Page 12 March 31, 2006 Attachment B Interim Year Worksheet(continued) Contra Costa County Interim Year Rate Change Worksheet Financial Information Section 1--Base Year Costs Base Year Controlled Costs 1 Total Operating Costs 2 Plus: Allowable Operating Profit 3 Minus: Tipping Fees(Profit Allowed) 4 Equals: Total Controlled Costs 72.3% Base Year Uncontrolled Costs 5 Tipping Fees(Profit Allowed) 6 Plus: Tipping Fees(Pass Through) 7 Equals: Total Uncontrolled Costs 27.7 8 Base Year Revenue Requirement(Less Franchise Fee) 100.0% Section II—Changes in Costs Change in Controlled Cost 9 Projected Change in Consumer Price Index 2.80 10 Adjustment Factor from Prior Interim Year 0.76 11 Adjusted Projected Change in Consumer Price Index 3.56% Change in Uncontrolled Cost 12 Prior Year Tipping Fees Per Ton $ 55.00 13 Plus: Prior Year Regulatory Fees Per Ton $ 14 Equals: Total Prior Year Uncontrolled Costs Per Ton 15 Projected Interim Year Tipping Fees Per Ton $ 56.20 16 Plus: Projected Interim Year Regulatory Fees Per Ton $ 17 Equals: Total Projected Interim Year Uncontrolled Costs Per Ton $ 56.20 18 Projected Change in Uncontrolled Costs FF 2.18% Section Ill—Calculation of Percentage Change in Rates Weighted Change in Controlled Costs 19 Controlled Costs as%of Base Yr.Revenue Requirement 72.3% 20 Multiplied by: Adjusted Projected Change in Consumer Price Index 3.56 21 Equals: Weighted Change in Controlled Costs 2.57 Weighted Change in Uncontrolled Costs 22 Uncontrolled Costs as%Bae Yr.Revenue Requirement 27.7% 23 Multiplied by: Projected Change in Uncontrolled Costs 2.18% 24 Equals: Weighted Change in Uncontrolled Costs 0.60% Weighted Change in Extraordinary Costs 25 Weighted Change for Extraordinary HHW Costs -0.62% 26 Equals: Weighted Change for Extraordinary HHW Costs 11 -0.62 Total Change 27 - Total Percent Change in Costs 2.55% 28 Divided by: Adjustment for Franchise Fee(1-5.0%) 95.0% 29 Equals Percent Change in Existing Rates Year. 2006 Page 2 of 2 C NewPoint Gbdo''; Management Consultants Ms. Deidra Dingman Page 13 March 31, 2006 Attachment C Consumer Price Index San Francisco-Oakland-San Jose, CA,All items 152.9 153.2 152.9 153.9 155.1 155.2 155.9 155.6 156.3 156.9 156.9 156 155.1 153.9 156.3 ..157: . ,,:169.2 x'169:5 159:8 =160 X160; 161x2<. :1'61 ,x162`:5 1626"' 162b ]604 158:9 161`:9 163.2 164.6 165.5 166.6 167.2 167.4 16S.5 164.2 166.9 �a X1695ro,,.1 US -4 5; 5172.5'x.170:8. 174:2 +++ 176.5 178.7 179.1 181.7 183.4 184.1 180.2 177.7 182.6 .. .;191 .a x.191:7 190t6 1>89 9 or .188:7 A"- 9t.-1 ++ 191.31 1 1931 1 193.2 193.51 194.3 193.21 1931 192.31 193.7 Z197�3 9fi'r3 w 196 3 195 3 96r: 6.:81 196:1 ++ 198.1 198.3 199 198.7 200.3 199.5 198.8 198.2 199.5 20152 X202:5 , 201';2 ;* 203 205: [203:4��202 7¢a 201.5 20359 " �,a, +'* 207.1 Consumer Price Index as of October 2004 200.3 Consumer Price Index as of October 2005 205.9 Change in Consumer Price Index 5.6 Percent Change in Consumer Price Index 2.80% I NewPoint,Group'. Manage m6nt;Cansultc nts Ms. Deidra Dingman Page 14 March 31, 2006 Appendix D Commercial Rate Structure Commercial-Only Option Number of Current Proposed Increase %Increase Level of Service Customers Rates Rates in Rate in Rate 2 yard bin 1 x week 204 $ 205.20 $ 231.00 $ 25.80 12.57% 2 yard bin 2 x week 38 $ 368.85 $ 415.00 $ 46.15 12.51% 2 yard bin 3 x week 31 $ 532.50 $ 599.00 $ 66.50 12.49% 2 yard bin 4 x week 7 $ 696.15 $ 783.00 $ 86.85 12.48% 2 yard bin 5 x week 3 $ 859.80 $ 967.00 $ 107.20 12.47% 3 yard bin 1 x week 24 $ 286.75 $ 322.50 $ 35.75 12.47% 3 yard bin 2 x week 5 $ 534.00 $ 600.50 $ 66.50 12.45% 3 yard bin 3 x week 9 $ 781.25 $ 879.00 $ 97.75 12.51% Commercial Cans 255 $ 28.30 $ 30.50 $ 2.20 7.77% Commercial Toters 139 $ _49.351 $ 51.501 $ 2.151 4.36% Total m a_ c x Ul X O r 00 M N c0 m Ln M00 N N r c! O p N O Co O M~M T r O T �. 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