Loading...
SSC Annual Rate Adjustment 2008t R . ~ ~. `° Sanitary Services Co. MEMORANDUM TO: Mayor Tammy de Weerd Members of the Meridian Citv Council: Mr. Joe Borton, President Mr. Charlie Rountree, Vice President Mr. Keith. Bird Mr. David Zaremba FROM: Steve Sedlacek, General Manager, Sanitary Services, Inc. DATE: August 12, 2008 SUBJECT: Annual Rate Adjustment for Solid Waste Collection Services Introduction Solid waste collection rates are adjusted annually in accordance with Section 21 of our contract with the City of Meridian with: an effective date of October 1. Typically this involves adjusting rates based upon the change in the Consumer Price Index (CPI). This year, landfill tipping fees at the Ada County Hidden Hollow Landfill are also expected top increase effective October 1. This memorandum presents the solid waste collection rate adjustment based upon the change to the CPI and the increased landfill tipping fees. Landfill Fee Changes Effective October 1, 2008 it is assumed that the Ada County Commissioners will raise disposal fees at the Hidden Hollow Landfill. Since the Commissioners have not released the new rate structure at the time of this memorandum we have assumed that the rate increase will be 50% in all waste categories with a slight reduction in the wood waste rate. Table 1 indicates the current and the assumed future (October 1) rate structure for all waste entering the Ada County Hidden Hollow Landfill. ~ P.O. Box 626, Meridian, ID 83680 Phone 208/888-3999 Fax 208/868-5052 ~~ Printetl on Recycletl Paper Table 1 Ada County Landfill Rates Rate Change Effective October 1, 2008 Current Rates Assumed Future Rates % Increase Wood Waste $ 2.50 per cubic yard $ 2.00 Per cubic yard -20% Noncompaded/loose $ 5.00 per cubic yard $ 7.50 Per cut~c yard 50% Construdion/Demolition $10.00 per cubic yard $15.00 Per cubic yard 50°k Compacted $ 10.00 per cubic yard $15.00 Per cubic yard 50% Tires $ 3.00 Each $ 4.50 Each 50% Refigeration Units $20.00 Each $30.00 Each 50% Asbestos $40.00 per wbic yard $60.00 Per cubic yard 50% All residential and commercial waste from Meridian is categorized as compacted waste. In FY 2007 Sanitary Services will pay approximately $1.8 million in disposal fees to Ada County. Our contract with the City of Meridian allows us to pass through to the consumer the effects of landfill rate increases that we have no control over. Also, these costs are specifically eliminated from any annual CPI rate increases since they are controlled by Ada County. To modify our rates accurately we determined the proportion of each rate that is disposal. Current analysis indicates that residential rates are 22.8% disposal and commercial rates are 28.1% disposal. Construction waste collection invoices disposal separately so no analysis is required for that waste stream. Therefore, for a residential customer that is paying $12.70 per month, the amount attributable to disposal is $2.90 per month ($12.70' 0.228 = $2.90). With the disposal of this type of waste increasing 50% the new disposal rate per house per month increases by $1.45 from $2.90 to $4.34. This incremental increase ($1.45) has to be adjusted further to account for the City of Meridian's 6% franchise fee, adding an additional $0.09 to each residential monthly bill. Therefore. the increase in residential rates due to landfill fee increases is $1.54. We have completed similar calculations for commercial rates as well CPI Adjustment Methodology Our contract requires that our costs be adjusted annually based upon the "net percentage of change in the Consumer Price Index for 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 June one year ago was 212.68 and this year it is 223.04. The net percentage change between the two values is 4.87%. Then, reducing this number by 10 percent yields a CPI adjustment of 4.38°r6 that is applied to our costs. Using similar calculations as above the current residential rate of $12.70 is 22.8°k landfill fee and 6% franchise fee. This leaves 77.2°r6, or $9.80 to be adjusted by the CPI. The CPI Increase is therefore $0.43 ($9.80 " 0.0438). This incremental increase ($.43) has to be adjusted further tp account for the City of Meridian's 6°k franchise fee, adding an additional $0.03 to each residential monthly bill. Therefore. the increase in residential rates due to the annual CPI adjustment is $.46. We have completed similar calculations for commercial rates as well 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 $2.00 per month for unlimited weekly service with curbside recycling. The percentage of change by various categories of rates is shown in Table 2. The percentages vary with the different types of systems that we operate because each has a different percentage that is disposal Table 2 Percentage of Rate Change by System Residential rates 15.7% Commercial can. rates 10.2°k Commercial container rates 19.7% Commercial com actor rates 10% - 24% Tem ora container rates 4.4°k - 6.6% Miscellaneous services 3.4% Rolloff Services 4.4% A more detailed analysis is available to the Mayor, Council or City staff upon request. If further information is necessary wi: would appreciate treating the .information as "business confidential." Bureau of Labor Statistics Data U.S. Department of Labor Page 1 of 1 www.b/s.gov Search: All BLS.gov J for: .ye..rA~4~. Bureau of Labor Statistics newsroom I Tutorials ~ ReloaseCalendar'~ Moms Subject Areas Databases & Tables Publications Economic Releases >-z Inver I aeoet a4s Databases, Tables & Calculators by Subject `°"'~s'~F -' CMfpe Output Optlons: cmm: x956 ~ ro: zoos - r include graphs Mewl M Fo atti O tp i sls- Data ext2cted on: August 12, 2008 (1:56:48 PM) Consumer Price Index -All Urban Consumers Saria> Id: CUUR04005A0, CUUSO400SA0 Not Seasonally Adj ustetl Atoa: West urban Item: All items aas~ P>xiod: 1902-04=100 Year lan Feb Mar Apr May )un lul Aug Sep Oct Nov Dec Annual XALF1 XALF2 1998 163.0 163.2 163.3 163.6 164.3 164.2 164.3 164.8 165.1 165.5 165.8 165.6 164.4 163.6 165.2 1999 166.4 166.9 167.3 169.0 166.7 168.3 168.9 169.5 170.0 170.4 170.4 170.5 168.9 167.8 170.0 2000 171.0 172.0 173.5 173.7 174.0 174.3 175.2 175.9 176.6 177.2 177.2 177.1 174.8 373.1 176.5 2001 778.3 179.3 180.1 180.4 161.3 182.0 182.0 181.9 162.5 182.5 182.3 181.6 181.2 180.2 182.1 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 194.5 195.7 197.1 196.6 198.8 196.0 198.6 199.6 201.7 202.6 201.4 200.0 198.9 197.1 200.7 2006 201.7 202.7 203.8 205.3 206.9 206.4 206.7 207.5 207.8 207.1 206.3 206.2 205.7 204.5 206.9 2007 207.790 208.995 210.778 212.036 213.063 212.680 212.542 212.406 212.920 213.917 214.904 214.733 212.230 210.890 213.570 Quick Links Tools Calculators XlIP Info ~ At a Glance Tables 0 Inflation O HeIU ~ Tutorials B What's New D Economic News Releases B Location Quotient O q to Z Index B Careers @ BLS b Databases R Tables ©Injvey And Illness o FAQs B Fnd II DOL m Maps O Glossary B loin our Mailing Lists O About BLS n Privacy & Seulnty O Con[ac[ Us o Linking E Copyri9 ht Information F,equenfly ,ssMee Questions I F,eetlom of InfarmatlOn /Kf I Customer Survey 11.5. Bu,eau O( rab0, $fanstlCS 2 Masy3L'M1U~¢ll~ Av¢nu ¢. NL 1Va~M1ing[on, GC 2o.11-GGGI www.bls.gOV TelepbOne: 1_G2; G91-5200 Do you M1av= a Data queStlOn~ bls.gav '~ http://data.bls.gov/PDQ/servleUSurveyOutputServlet?data_tool=dropmap&series_id=CUU... 8/12/2008 Proposed Solid Waste Collection Rate Changes Proposed Rates Effective 10/1/08 Sanitary Service Inc. Current Rate Proposed Rate Structure Structure Residential $ 12.70 $ 14.70. ToterCarts $. 2.75 $ 2.87 HabHual LateCan Fee $ 5.00 $ 5.00 Commercial Cans (Current) 1/wk 2/wk 3lwk 1 -. 3 cans $ 21.46 $ 42.92 $ 64.37 4 - 6 cans $ 42.92 $ 85.83 $ 128.75 7 - 9 cans $ 64.38 $ 128.76 $ 193.11 Commeroial Cans (Proposed) 1lwk 2MAt 3lwk 1 - 3 cans $ 23.64 $ 47.29 $ 70.92 4 - 6 cans $ 47:29 $ 94.56 $ 141.85 7 - 9 cans $ 70.93 $ 141.86 $ 212.76 Commercial CorrtaineB (Current) 1/wk 2lwk 3/wk 4xlwk 5lwk 6hMc 1 1/2 Yd $ 79.93 $ 113.97 $ 147.41 $ 197.76 $ 247.99 $ .298.23 3 Yd $ 83.76 $ 135.67 $ 187.66 $ 247.25 $ 325.02 $ 393.73 6Nd $ 130.68 $ 211.13 $ 291.49 $ 388.67 $ 485.89 $ 583:07 8 Yd' $ 155.14 $ 241.40 $ 321.78 $ .416.21 $ 516.83 $ 612.95 Commeroial Confainere (Proposed) 1/wk 2lwk 3/wk 4xlwk 5/wk 6lwk 11/2 Yd $ 95.70 $ 136.45 $ 176.49 $ 236.77 $ 296.91 $ 357.07 3 Yd $ 100.28 $ 162.44 $ 224.68 $ 296.03 $ 389.14 $ 471.47 6 Yd $ 156.46 $ 252.78 $ 349.00 $ 465.35 $ 581.75 $ 698.10 8 Yd $ 185.75 $ 289.02 $ 385.26 $ 498.32 $ 618.79 $ 733.87 Commercial Compactors Current Proposed 2 Yd $ 43.30 $ 53.87 3 Yd $ 59.28 $ 70.55 4 Yd $ 75.59 $ 87.58 5 Yd $ 91.94 $ 104.64 6 Yd $. 107.78 $ 121.18 8 Yd $ 144.95 $ 159.97 Temporary Container Service Current Proposed Delivery $ 19.70 $ 20.56 Daiy Rental - 3 Yd $ 0.75 $ 0.78 Monthy Rental - 3 Yd $ 19.70 $ 21.00 Entry Dump 3 Yd $ 25.96 $ 32.25 EMrs Dump 6 Yd $ 40.79 $ 42.58 Extra Dump 8 Yd $ 52.51 $ 54.81 MiscelWrreous Collection Servlrsa Tires $ 4.00 $ 6.00 Refrgerators $ 46.05 $ 47.70 Overflow Cleanup $13.00 for5min $13.60 fors min Ral on Services (carrell) 549.00 per haul+ disposal +franchise fees (6 - 10 CY containers) $109.65 per haul+disposal+franchise fees(20-40 CY containers, Weekdays) $166.20 par haul+disposal+franchise fees (20-40 CY Containers, Weekends) E135.60 per haul +disposal +franchisa fees (asbestos -Ada County) $215.75 perhaul + disposal + franchise fees (asbestos -Idaho Waste Systems) $84.85 per hour 6ctrs services Ral Off Services (Prop osed) 551.15 per haul + disposal + franchise fees (6 - 10 CY containers) $114.45 per haul+disposal+franchise fees (20-40 CY containers, Weekdays) $173.48 per haul+disposal+fanchise fees(20-40 CY containers, Weekends) $141.54 per haul+disposal+fanchise fees (asbestos-Ada County) $225.20 per haul+ disposal +fanchise fees (asbestos -Idaho Waste Systems) $88.36 per hour 6ctrs services Landfill Rates with Franchise Fees (Current Size Loose Solid Waste ConsWdion Demolition Compacted waste Wood Waste 6 Yd $ 31.80 $ 63.60 $ 15.90 8 Yd $ 42.40 $ 84.80 $ 21.20 10 Yd $ 53.00 $ 106.00 $ 26.50 20 Yd $ 106.00 $ 212.00 $ 212.00 $ 53.00 30 Yd $ 159.00 $ 318.00 E 318.00 $ 79.50 40 Yd $ 212.00 $ 424.00 $ 424.00 $ 106.00 Landfill Rats whh Franchise Fees (Prop Size osed) Loose Solid Waste ConsWGion Demolition Compacted waste Wood Waste 6 Yd $ 47.70 $ 95.40 $ 12.72 8 Yd $ 63.60 $ 127.20 $ 16.96 10 Yd $ 79.50 $ 159.00 $ 21.20 20 Yd $ 159.00 $ 318.00 $ 318.00 $ 42.40 30 Yd $ 238.50 $ 477.00 $ 477.00 $ 63.60 40 Yd $ 318.00 $ 636.00 $ 636.00 $ 84.80 1 container $ 39.00 $ 70.00 $ 100.00 2 containers $ 70.00 $ 100.00 $ 130.00 1 container $ 40.71 $ 73.07 $ 104.38 2 containers $ 73.07 $ 104.38 $ 135.69