CPI Rate Adjustment
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sse Sanitary Services Co.
MEMORANDUM
'~ECEIVED
AUG1 8 2006
TO:
MayorTammyde Weerd
City of Meridi:lO
City Clerk office
City Council Members:
Mr. Shaun Wardle - President
Mr. Joe Borton - Vice President
Mr. Keith Bird
Mr. Charlie Rountree.
FROM: Steve Sedlacek, Business Manager, Sanitary Services, Inc.
Bill. Gregory, Operations Manager, Sanitary Services, Inc.
DATE: August 17, 2006
SUBJECT: Annual CPI Rate Adjustment for Solid Waste Collection Services
" . .
This memorandum presents the solid waste collection rate. adjustment based upon the
Consumer Price Index (CPI) in_ accordance with Section 21 of our contract with the City
of Meridian. This rate adjustment coincides with the beginning of the next fiscal year, -
October 1, 2006. .
Adjustment Methodology
Our contract requires that - our costs be adjusted annually based upon the "net
percentage of change in the Consumer Price Indexfor the Pacific Northwest." (The CPI
is no longer published for the Pacific Northwest so we have used the CPI for the
Western Region of the United States.) Further, we reduce the calculated change .in the
CPI by ten percent to account for aspects of the CPI that do not apply to our business.
Attached to this memorandum is the CPI printout from the U.S. Bureau of Labor
Statistics. The CPI for July one yearago was 198.6 and this year it is 206.7. The net
percentage change betWeen the two values is4.08%. Then, reducing this number by 10
percent yields a CPI adjustment of 3.67% that is applied to our costs.
Another requirement of our contract is that we exclude the landfill portion of our fees
frbm the adjustment.
.... P.d.-Box 626, Meridian, 1083680 Phone 208/888-3999 Fax 208/888~5052
'-1 Printed oil Recycled Paper
!
Results of Rate Change
The current and proposed rates are presented in tabular form in an attachment to this
memorandum. The residential rate will increase by $0.30 per month- to $11.25. for
unlimited weekly service with curbside recycling. -
The percentage of change by various cat~gories of rates is shown in Table 1. The
percentages vary with the different types of systems that we .operate because each has
a different percentage that is disposal.
Table 1
Percentage of Rate Change by System
Residential rates .~- 2.7%
Commercial Can rates 0.9% - 1.95%
Commercial container rates 3.08%
Commercial compactor rates 1.96% - 2.22%
T emporarv container rates 3.67%
Miscellaneous services - 3.67%
--
Rolloff Services 3.67%
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A more detailed analysis is available to the Mayor, Council or City staff upon request If
further information is necessary we would appreciate treating the information as
"business confidential."
Bureau MLabor Statistics Data
Page 1 of 1
u.s. Department of Labor
Bureau of Labor Statistics
Bureau of Labor Statistics Data
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From:: 1996 ~\~i.
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Data extracted on: August 16, 2006 (3:50:03 PM)
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Consumer Price Index ~ All Urban Consumers
Series Id: CUUR0400SAO,CUUS0400SAO
Not Seasonally Adjusted
Area: West urban
Item: All it ems
Base Pe,riod: 1982-8'4=100
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dee Annual HALFl HALF2
1996 155.3 155.8 156.4 157.1 157.6 157.5 157.9 158.0 158.6 159.1 159.2 158.7 157.6 156.6 158.6
1991 159.6 160.1 160.8 161.1 161.1 161.0 161.1 161.5 162.1 162.8 162.8 162.8 161.4 160.6 162.2
1998 163.0 163.2 163.3 163.6 164.3 164.2 164.3 164.8 165.1 165.5 165.8 165.8 164.4 163.6 165.2
1999 166.4 166.9 167.3 169.0 168.7 168.3 168.9 169.5 170.0 170.4 170.4 170.5 168.9 167.8 170.0
2000 171.0 172.0 173.5 173.7 174.0 174.3 175.2 175.9 176.6 177.2 177.2 177.1 174.8 173.1 176.5
2001 178.3 179.3 180.1 180.4 181.3 182.0 182.0 181.9 182.5 182.5 182.3 181.6 181.2 180.2 182.1
2002 182.4 183.2 184.0 185.1 184.8 184.5 184.7 185.3 185.7 185.8 185.8 185.5 184.7 184.0 185.5
2003 186.6 188.1 189.3 188.8 188.5 188.1 188.4 189.2 189.6 189.4 188.5 188.3 188.6 188.2 188.9
2004 189.4 190.8 192.2 192.3 193.4 193.3 192.9 193.0 193.8 195.0 195.1 194.2 193.0 191.9 194.0
2005 194.5 195.7 197.1 198.6 198.8 198.0 198.6 199.6 201.7 202.6 201.4 200.0 198.9 197.1 200.7
2006 201.7 202.7 203.8 205.3 206.9 206.4 206.7 204.5
Frequentlv Asked Questions I Freedom of Information..Att I Customer survey
,Prjvar:,Y"It,S.e~YritY,S,t,~t~me,nt I ,l"inki.n9"j;Q..,Q,yr.Slt,e, I Ar:"r:,J~~,~.i..blUty:
u.s. Bureau of Labor Statistics
Postal Square Building
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Washington, DC 20212-0001
Phone: (202) 691-5200
Fax-on.demand: (202) 691-6325
Data questions: t!l~,!;!,,i;!'~j:!__J~,1;!;!ff.@pJ~>g9.Y.
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Other comments: f~~I:!~,~~@\J;!.I~,gQV.
http://data.bIs.govIPDQ/servIet/SurveyOutputServIet?data_tooI=dropmap&series_id=CUUR0400SAO, CD... 8/16/2006
Proposed Solid Waste Collection Rate Changes
Proposed Rates Effective 10/1/06
Sanitary Service Inc.
Proposed
Current Rate Rate
Structure Structure
Residential $ 10.95 $ 11.25
Toter Carts $ 2.60 $ 2.70
Habitual Late Can Fee $ 5.00 $ 5.00
Commercial Cans (Current) 1/wk 2/wk 3/wk
1 - 3 cans $ 17.84 $ 35.68 $ 53.52
4 - 6 cans $ 35.68 $ 71.36 $ 107.04
7 - 9 cans $ 44.14 $ 88.29 $ 132.42
Commercial Cans (Proposed) 1/wk 2/wk 3/wk
1 - 3 cans $ 18.00 $ 36.00 $ 54.00
4 - 6 cans $ 36.00 $ 72.00 $ 108.00
7 - 9 cans $ 45.00 $ 90.00 $ 135.00
Commercial Containers (Current) 1/wk 2/wk 3/wk 4x/wk 5/wk 6/wk
1 1/2 Yd $ 65.11 $ 92.85 $ 120.09 $ 161.10 $ 202.02 $ 242.95
3Yd $ 68.24 $ 110.52 $ 152.88 $ 201.42 $ 264.78 $ 320.75
6Yd $ 106.46 $ 172.00 $ 237.46 $ 316.63 $ 395.83 $ 475.00
8Yd $ 126.38 $ 196.66 $ 262.14 $ 339.07 $ 421.03 $ 499.34
Commercial Containers (Proposed) 1/wk 2/wk 3/wk 4x/wk 5/wk 6/wk
1 1/2 Yd $ 67.12 $ 95.71 $ 123.79 $ 166.07 $ 208.25 $ 250.44
3 Yd $ 70.34 $ 113.93 $ 157.59 $ 207.63 $ 272.94 $ 330.64
6Yd $ 109.74 $ 177.30 $ 244.78 $ 326.39 $ 408.03 $ 489.64
8Yd $ 130.28 $ 202.72 $ 270.22 $ 349.52 $ 434.01 $ 514.73
Commercial Compactors (per dump) Current Proposed
2Yd $ 28.07 $ 28.65
3Yd $ 43.78 $ 44.75
4 Yd $ 55.18 $ 56.30
5 Yd $ 66.55 $ 67.90
6Yd $ 77 .48 $ 79.00
8Yd $ 104.48 $ 106.55
TI~mporary Container Service Current Proposed
Delivery $ 18.48 $ 19.16
Daily Rental $ 0.69 $ 0.72
Monthly Rental $ 18.48 $ 19.16
Extra Dump 3 Yd $ 21.17 $ 21.80
Extra Dump 6 Yd $ 33.26 $ 34.25
Extra Dump 8 Yd $ 42.83 $ 44.10
~:
Miscellaneous Collection Services
Tires
Refrigerators
Overflow Cleanup
$ 2.75 $ 2.85
$ 37.86 $ 39.25
$12.70 for 5 min $13.00 for 5 min
Roll Off Services (Current)
$46.00/haul + disposal + franchise fees (6 - 10 CY containers)
$1 03.00/haul + disposal + franchise fees (20 - 40 CY containers, Weekdays)
$156.00/haul + disposal + franchise fees (20 - 40 CY containers, Weekends)
$136.00/haul + disposal + franchise fees (asbestos - Ada County)
$215.00/haul + disposal + franchise fees (asbestos -Idaho Waste Systems)
Extra services $ 84.57 per hour
Roll Off Services (Proposed)
$47.70/haul + disposal + franchise fees (6 -10 CY containers)
$106.75/haul + disposal + franchise fees (20 - 40 CY containers, Weekdays)
$161.75/haul + disposal + franchise fees (20 - 40 CY containers, Weekends)
$141.00/haul + disposal + franchise fees (asbestos - Ada County)
$223.00/haul + disposal + franchise fees (asbestos - Idaho Waste Systems)
Extra services $ 87.65 per hour
Roll Off Container Rental (Current)
6Yd $ 1..42 per day $ 42.47 per month
8 Yd $ 1.84 per day $ 55.06 per month
10 Yd $ 2.04 per day $ 61.35 per month
20Yd $ 2.46 per day $ 70.54 per month
30Yd $ 3.08 per day $ 86.22 per month
40Yd $ 3.36 per day $ 98.53 per month
Roll Off Container Rental (Proposed)
6Yd $ 1.47 per day $ 44.03 per month
8 Yd $ 1.91 per day $ 57.08 per month
10 Yd $ 2.11 per day $ 63.60 per month
20Yd $ 2.55 per day $ 7313 per month
30Yd $ 3.19 per day $ 89.38 per month
40Yd $ 3.48 per day $ 102.15 per month
Disposal Rates with Franchise Fees (Current)
Compact Wood
Size SW Dump Demo Dump Dump Waste
6Yd $ 19.08 $ 38.16 $ 9.54
8Yd $ 25.44 $ 50.88 $ 12.72
10Yd $ 31.80 $ 63.60 $ 15.90
20Yd $ 63.60 $ 127.20 $ 127.20 $ 31.80
30Yd $ 95.40 $ 190.80 $ 190.80 $ 47.70
40Yd $ 127.20 $ 254.40 $ 254.40 $ 63.60
Voluntary Commercial Cardboard Collection (Current) .3 CY containers
1 x/week 2 x/week 3 x/week
1 container $ 38.00 $ 68.00 $ 98.00
2 containers $ 68.00 $ 98.00 $ 128.00