City of San Gabriel STAFF REPORT Date: To: From: Subject: June 16, 2015 Steven A. Preston, City Manager /\. Thomas C. Marston, Finance Directo~ Consideration of Request Submitted by Athens Services for Rate Adjustment SUMMARY For many years, the City has contracted with Athens Services to provide residential and commercial waste disposal services to the residents and businesses of San Gabriel. In accordance with the terms of the contract, it is necessary for the Council to endorse all proposed rate adjustments. The most recent rate schedule was adopted by the City Council in June 2014. Staff recommends that the Council approve a rate schedule for Athens Services providing allowable rates the Company may charge for its services within the City of San Gabriel. I. BACKGROUND For many years, the City has contracted with Athens Services to provide residential and commercial waste disposal services to the residents and businesses of San Gabriel. In accordance with the terms of the contract, it is necessary for the Council to endorse all proposed rate adjustments. The most recent rate schedule was adopted by the City Council in June 2014. An amended and restated agreement to the contract with Athens Services was approved by the City Council on October 17, 2000, amended on December 5, 2006 and amended most recently on January 7, 2014. The 2006 Amendment initiated an automated residential collection program that incorporated the processing of all residential and commercial waste, exclusive of green waste, through the Materials Recovery Facility. This program was
implemented on February 1, 2001. The 2014 Amendment addressed the closure of the Puente Hills landfill and provided for a significantly different new disposal methodology that includes using American Organics in Victorville, building a companion material recovery facility in both Irwindale and Sun Valley, purchasing heavy equipment, transfer trailers and tractors that enable the transport of waste to San Bernardino County landfills. There are three components to the refuse rates; 1) Operations, 2) Disposal, and 3) City Fee. Athens Services is proposing a 2.4 7% increase to both the operations and disposal components of the rates. This 2.47% increase includes a 2% increase attributable to the final of the three phase special rate increase approved with the January 7, 2014 Amendment and a.47% CPI increase. The City Fee is not adjusted by the Athens contract, but is addressed each year through the City's Budget process. This Fee has not been recommended to be increased. Operations Component The Operations component is comprised of collection, transportation and processing costs, each are subject to the final phase of the three phase rate adjustment as well as to the annual increase or decrease in the Consumer Price Index for the previous 12-month period (May through April.) As previously mentioned, the Consumer Price Index adjustment is.4 7% and the final phase of the three phase rate adjustment is 2% for a total operations increase of 2.4 7%. Disposal Component The Disposal component is comprised of greenwaste and rubbish disposal costs, both of which are subject to the final phase of the three phase rate adjustment as well as to the annual increase or decrease in the Consumer Price Index for the previous 12-month period (May through April.) Consistent with the implementation of the amended and restated agreement, Athens Services has proposed a 2.47% disposal rate increase. This is based on the Consumer Price Index adjustment of.47% and the final phase of the three phase rate adjustment of 2% for a total disposal increase of 2.47%. City Fee Component City monthly fees, currently $3.59 for residential and $12.47 for commercial, fund wasterelated activities including street sweeping, waste reduction, recycling, construction, maintenance and operation of waste systems and potential landfill litigation costs. Current charges are funding these activities; therefore there is no proposal to increase City fees. II. ANALYSIS The automated residential and commercial rate adjustments proposed by Athens Services are in accordance with the previously agreed upon terms and conditions of the contract.
Athens Services is recommending rate increases become effective July 1, 2015 for commercial and bin service customers and August 1, 2015 for residential. While each refuse customer can make a selection as to the level of service and associated costs, the most common residential service requested is for the automated 90/90 curbside service and the most common commercial service requested is for a 3 yard (one-time per week collection.) The effect of the Athens rate change on these most common classes of service will be a $.73 per month or a 2.2% increase to residential customers and a $4.50 monthly or 2.3% increase for commercial. The table below shows the current and proposed rate structure for these most common classes of service. Current Proposed Residential Commercial $33.05 $194.64 $33.78 $199.14 III. RECOMMENDATION Staff recommends that the City Council endorse the rate adjustments proposed by Athens Services for its services not to exceed the attached rate schedule effective July 1, 2015 for bin service and commercial customers, and August 1, 2015 for residential customers. IV. EHIBITS City of San Gabriel Rate Schedule, July 2015 City of San Gabriel Rate Adjustment, July 2015
Athens S May 28,2015 Steven A. Preston City Manager City of San Gabriel 425 S. Mission Drive San Gabriel, CA 91776 14048 Valley Blvd. P. 0. Box 60009 City of Industry, CA 91716-0009 Fax (626) 330-4686 (626) 336-3636 Re: Annual Rate Review Mr. Preston: In accordance with the Amended and Restated Agreement between the City of San Gabriel (City) and Athens Services (Athens), and pursuant to the Third Amendment to the Agreement, we have adjusted the rates for waste services, as referenced in the attached Exhibit, to be effective July 1, 2015. The base rates have been adjusted based on the percentage change in the Consumer Price Index (CPI) from April 2014 to April 2015 of.4 7%. In addition, and pursuant to Item #4 of the Third Amendment, the base rates have also been adjusted by an additional 2.00% on top of the CPI adjustment. As a result, the base rates have been adjusted by a total of2.47%, to be effective July 1, 2015. Please handle the administrative processing of this annual rate review to make the rates effective July 1, 2015. can be reached at (626) 855-7230 to answer any questions or to discuss this rate review. As always, we appreciate our relationship with the City of San Gabriel and will continue providing exceptional waste & recycling services to the residents and businesses in the City. Sincerely, Christian Warner Controller Enclosure Cc: Thomas Marston, Finance Director, City of San Gabriel Johnnie Perkins, Executive Vice President, Athens Services
Bureau of Labor Statistics Data Page 1 of 1 A to Z Index I FAQs I About BLS I Contact Us Subscribe to E-mail Updates IEJ:I Follow Us I What's New I Release calendar I Site Map I Home I Subjects I Data Tools I Publications I Economic Releases Search BLS.gov Students I Beta Databases, Tables & Calculators by Subject FONT SIZE: 8 ~ Change Output Options: From: 2005 ~) To: 2015 ~ ~ Data extracted on: May 22, 2015 (11:35:07 AM) 0 include graphs 0 include annual averages More Formatting Options.. Consumer Price Index All Urban Consumers Series Id: CUURA421SAO Not Seasonally Adjusted Area: Los Angeles-Riverside-Orange County, CA Item: All items Base Period: 1982-84=100 Download: EliJ.J!!!! I I Year Jan J Feb Mar Apr May Jun lui Aug Sep 2005 195.4 197.4 199.2 201.1 201.5 200.7 201.4 203.1 205.8 2006 206.0. 207.5 208.5 210.5 212.4 211.1 211.4 211.9 212.9 2007 212.584 210 216.500 217.845 218.596 217.273 217.454 217.330 217.697 2008 220.918 221.431 223.606 2_24.625 226.651 229.033 229.886 228.484 227.449 2009 220.719 221.439 221.376 221.693 222.522 223.906 224.010 224.507 225.226 2010 224.610 224.620 225.483 225.916 226.438 225.877 225.991 226.373 226.048 2011 228.652 229.729 232.241 233.319 233.367 232.328 231.303 231.833 233.022 2012 233.441 234.537 236.941 236.866 237.032 236.025 235.776 237.222 238.104 2013 238.015 239.753 239.995 239.043 239.346 239.223 238.920 239.219 239.611 2014 239.857 241.059 242.491 242.437 243.362 243.528 243.727 243.556 243.623 2015 239.724 241.297 243.738 243.569 Oct 206.9 211.4 218.696 226.159 225.264 226.794 233.049 241 239.940 243.341 Nov Dec HALF1 [ HALF2, 205.6 203.9 199.2 204.5 211.1 210.6 209.3 211.6 219.943 219.373 216.260 218.416 222.229 219.620 224.377 225.638' 224.317 223.643 221.943 I 224.495, 225.941 226.639 225.491 226.298 232.731 231.567 231.606 232.251: 237.675 236.042 235.807 237.488 238.677 238.742 239.229 239.185 241.753 240.475 242.122 242.746: i TOOLS CALCULATORS HELP INFO RESOURCES Areas at a Glance Inflation Help & Tutorials What's New Inspector General (OIG) Industries at a Glance Location Quotient FAQs Careers @ BLS Budget and Performance Economic Releases Injury And Illness Glossary Find It! DOL No Fear Act Databases & Tables About BLS Join our Mailing Lists USA.gov Maps Contact Us Linking & Copyright Info Benefits.gov Dlsability.gov Freedom of Information Act 1 Privacy &. Security Statement 1 Disclaimers 1 Customer Survey I Important Web Site Notices U.S. Bureau of Labor Statistics 1 Postal Square Building, 2 Massachusetts Avenue, NE Washington, DC 20212-0001 www.bls.oov I Telephone: 1 202 691-5200 I TDD: 1 800-877-8339 I Contact Us http://data.bls.gov/cgi-bin/surveymost 5/22/2015
CITY OF SAN GABRIEL RATE SCHEDULE JULY 2015 SERVICE OPERATIONS COMPONENT GREENWASTE RUBBISH TOTAL COMPONENT COMPONENT COMPONENT NET CITY TOTAL RATE FEE RATE SINGLE FAMILY 90/90 CURB90/90 24.23 CURB60/90 21.91 ETRA GREEN 8.44 ETRA BLACK 11.78 CONTAINER ECHANGE 33.66 ROLLOUT SERVICE 16.84 MULTI-FAMILY BIN I 10 OR MORE UNITS 12.18 PLUS PER BIN 43.51 COMMERCIAL 3 YARD I 160.49 2 232.08 3 296.11 4 369.60 5 45 6 535.55 COMMERCIAL 2 YARD 127.28 2 194.55 3 254.03 4 313.45 372.88 6 432.31 COMMERCIAL 1.5 YARD 104.09 2 167.73 218.98 6 354.35 COMMERCIAL I YARD I 71.11 BARRELS (CUSTOMER) 22.83 EACH ADDITIONAL 9.48 BARRELS (FURNISHED) 24.36 EACH ADDITIONAL 11.58 ROLL OFF 688.81 1.20 5.96 1.20 3.17 4.37 3.17 3.17 26.18 26.18 52.36 52.36 78.54 78.54 104.72 104.72 130.92 130.92 157.04 157.D4 17.43 17.43 34.91 34.91 45.50 45.50 56.05 56.05 87.20 87.20 104.63 104.63 13.o9 13.09 26.18 26.18 34.13 34.13 66.61 66.61 8.70 8.70 172.21 172.21 30.19 3.59 33.78 26.28 3.59 29.87 8.44 000 8.44 I 1.78 000 11.78 33.66 0.00 33.66 16.84 0.00 16.84 15.35 15.35 43.51 12.47 55.98 186.67 12.47 199.14 284.44 24.94 309.38 37 37.41 412.06 474.32 49.88 524.20 583.53 62.35 645.88 692.59 74.82 767.41 144.71 12.47 157.18 229.46 24.94 254.40 299.53 37.41 336.94 369.50 49.88 419.38 460.08 62.35 522.43 536.94 74.82 611.76 117.18 12.47 129.65 193.91 24.94 218.85 253.11 37.41 290.52 420.96 74.82 495.78 79.81 12.47 92.28 27.59 6.24 33.83 14.24 6.24 20.48 29.12 6.24 35.36 16.34 6.24 22.58 861.02 12.47 873.49
CITY OF SAN GABRIEL RATE ADJUSTMENT JULY 2015 APRIL 2014 CPI APRIL 2014 CPI %CHANGE: LAST PHASE IN % TOTAL% CHANGE TO RATES 242 437 243.569 047% 200% 2.47% SERVICE CURRENT 247% COLLEC & CPI TRANSP. ADJ ------- -------- COLLEC& TRANSP. CURRENT PROCESS 2.47% CPI ADJ PROCESS TOTAL OPERATIONS COMPONENT CURRENT G/WASTE DISP 241% LIFILL ADJ G/WASTE DISP. CURRENT RUBBISH DISP 247% LIFILL ~ RUBBISH DISP. TOTAL COMPONENT NET RATE SINGLE FAMILY 90/90 CURB 90/90 CURB 60/90 17.31 17 12 0.43 0.42 17 74 17 54 6.33 4 26 0.16 6.49 4.37 24.23 21.91 1.17 I 17 0.03 0.03 1.20 I 20 3.09 0 II 0.08 317 5.96 437 30.19 26 28 ETRA GREEN ETRA BLACK CONTMNERECHANGE ROLLOUT SERVICE 8.24 11 50 32 85 16.43 0.20 0.28 0 81 0.41 8.44 II 78 3366 16.84 MULTI-FAMILY BIN I I 0 OR MORE UNITS PLUS PER BIN 8.72 42.46 0.22 I 05 8 94 43.51 3.16 0 08 3.24 12.18 43 51 3 09 0.08 3.17 3 17 15 35 43 51 COMMERCIAL 3 YARD I 124.39 162.05 192.32 231 86 280 63 329 35 3 07 4 00 4 75 5 73 6 93 8.13 127 46 166 05 197 07 237 59 287.56 337.48 32.23 64.44 96 65 128.83 161.07 193.30 0 80 1.59 2.39 3.18 3.98 4.77 33.03 66 03 99 04 13201 165.05 198.07 160.49 232.08 296.11 369.60 45 535.55 25.55 51 10 76.65 102.20 121.76 153 25 0.63 1.26 I 89 2.52 3 16 3.79 26.18 52.36 78 54 10472 130.92 157 04 2618 5236 78.54 104.72 130.92 157.04 186.67 284.44 374 65 47432 583 53 692 59 COMMERCIAL 2 YARD I 102 78 146.89 183.42 219.94 256 47 292.99 2 54 3 63 4 53 5.43 6.33 7.24 105 32 150 52 187.95 225.37 262.80 300.23 21 43 42.97 64.49 85.96 107.43 128.90 0.53 I 06 1.59 2 12 2 65 3.18 21.96 44 03 66.08 88.08 110.08 132.08 127.28 194.55 254.03 313 45 372.88 432.31 17.01 34 07 44.40 54.70 85 10 102.11 0.42 0 84 1.10 135 2.10 2.52 17 43 34.91 45.50 56.05 87 20 104.63 17 43 34.91 45.50 56.05 87.20 104.63 144 71 229 46 299 53 369 50 460.08 536 94 COMMERCIAL 1.5 YARD 85.45 13145 165.37 252.05 2.11 3 25 4 08 6.23 87.56 134 70 169.45 258.28 16.13 32.23 48.34 93.75 0.40 0.80 1.19 2.32 16.53 33.03 49.53 96.07 104 09 167.73 218.98 354.35 12.77 25.55 33.31 65.00 0.32 0 63 0 82 1.61 13.09 26.18 34.13 66.61 13 09 26.18 34.13 66.61 117.18 193.91 253.11 420.96 COMMERCIAL I YARD I 58 63 145 60.08 10.76 0.21 11.03 71 II 8.49 0.21 8.70 8.70 79.81 BARRELS (CUSTOMER) EACH ADDffiONAL 19.73 6.70 049 0.17 20.22 6.87 2.55 2.55 0.06 0 06 22.83 9.48 27 59 14 24 BARRELS (FURNISHED) EACH ADDffiONAL 21 23 8.75 0.52 0.22 21.75 8.97 2 55 2.55 0.06 0.06 24.36 11.58 4 76 4 76 29.12 16.34 ROLL OFF 292.23 7.22 299.45 379 97 9.39 389.36 688.81 168.06 4.15 172.21 172.21 861.02