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Home My WebLink AboutAGENDA BACKUP 04-05-84 ((<SD Central _ontra Costa Sanitar) Jistrict BOARD OF DIRECTORS No.IV. CONSENT CALENDAR 1 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE March 19, 1984 SUBJECT TYPE OF ACT ION CSO SHOP IMPROVEMENT - CAPITAL PROJECT AUTHORIZATION REQUEST FOR $2,500.00 Consent Calendar SUBMITTED BY ISSUE: The CSO shop has a G&O for the current fiscal year of constructing a small work area enclosure in the rear of the shop. BACKGROUND: The project consists of enclosing an area under the existing roof overhang at the rear shop door by install ing an 8-foot roll-up door with a small pass dqor, const;nuctihg a 12'-6"1ong partition stud wall, and installing a header for a wider passage to the shop bay. This project shouldcost $2,500 including all parts and materials, contractor labor, and D i s t r i c t 1 a bo r . This enclosed area would store tools and equipment from the existing bay near the shop allowing more efficient use of that area. The shop traffic pattern would be impr>oved and it would be convenient for shop personnel to work at the large vehicle pad at the rear of the shop. RECOMMENDATION: Approve capital project authorization request for $2,500 for CSO shop improvement. As this expense is less than $5,000 it is being requested under the consent calendar as per board policy. ftEVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. Q,0, U RHH P roj ect h~. -50200 Description CSO Shop Improvement CENTRAL CONTRA COSTA SANITARY DISTRICT POS IT I ON PAPER Date 3/8/84 Lead Dept. CSO Authorization $2,500.00 Date Acctg. Notified Date Work Complete Date Closed Account PROJECT AUTHORIZATION Approval of the following authorization is requested. Position Paper (P.P.) ~ttached if Board has authorized funds. DESCRIPTION: CSO Shop Improvement BACKGROUND: (If yes, attach accounting COST DETAil: Is this a grant project? Yes procedure for grant) No X CONTROL NUMBER DESCRIPTION COST CATEGORY BUDGET FINAL COST START DATE PLANNED DURATION 50200 50630 Construction Contract Collection System Operations $1 ,600 900 4-1-84 4-1-84 Total This Authorization $2,500 Previous Authorizations Total $2,500. REMARKS: Requested By Reviewed By Authorized By '. ~.~. \L~ R. H. Hinkson Authorization Date Attachment PrODose~ P.P. BCid:"c! .....'''.S1t11... "'.'1. .......- t' ..J '\'''''''''' !c'i1<llj .;~ ;i ;j .~~ lilt.. March 8, 1984 MEMO TO: Roger J. Dolan, General Manager-Chief Engineer FROM: R. H. Hinkson, Manager, Collection System Operations ~~~ SUBJECT: CSO SHOP IMPROVEMENT - CAPITAL PROJECT AUTHORIZATION REQUEST FOR $2,500 The CSO Shop has a G&O for the current fiscal year of constructing a small work area enclosure in the rear of the shop. This space would allow a transfer of tioo1s and' equipment storage from the existing bay near the shop office ,allowing more efficient use of that area. Also, the shop traffic pattlern would be improved and it would be more conven- ient for the shop personnel to work at the large vehicle pad at the rear of the shop. The project consists of enclosing an area under the existing roof over- hang at the rear shop door by installing an 8 foot roll-up door with a small pass door, c~nstructing a 121-6" long partition stud wall, and installing a header ~or a wider passage to the shop bay. I am requesting that you authorize a capital project which would cost $2,500 including all parts and materials, contractor labor, and District labor. RHH/vg Approved by: Central Contra Costa Sanitary District B(l)ARD OF DIRECTORS POSITION PAPER NO. IV. CONSENT CALENDAR 2 4 84 VilA: ROGER J. DOLAN General Manager-Chief Engineer DATE Ma rC!:h 5, 1984 SUBJECT ACCEPT THE CONTRACT FOR CONSTRUCTION OF CATHODIC PROTECTION SYSTEM, LINE M-6, MART I NEZ, (PROJECT 3586, SCHEDULE A) AND AUTHORIZE THE FILING OF THE NOTICE OFCOHPLETION I TYPE OF ACTION ACCEPT CONTRACT WORK Munawar Husain INITIATING DEPT./DIV. Construction and Services Division SUBMITTED BY ISSUE: Work has been comp1~ted on the Cathodic Protection System for Line M-6, off North Court Street in Martinez. This contract work is now ready for acceptance. BACKGROUND: Smith & Denison, Inc. was issued a Notice to Proceed on October 11, 1983. By February 15, 1984, the Contractor had completed the contract work. It is appropriate to accept the work at this time. RECOMMENDATION: Accept the Contract for construction of the Cathodic Protection System, Line M-6 (Project 3586, Schedule A) and authorize the fil ing of the Notice of Completion. R VIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. M. Husain J.JJ.. Ji:l J1J[J RAB Central Contra Costa Sanitary District Bc)ARD OF DIRECTORS N~ IV. CONSENT CALENDAR POSITION PAPER VilA: ROGER J. DOLAN General Manager-Chief Engineer DATE March 27, 1984 SUBJECT TYPE OF ACTION EXECUTE AGREEMENT RELATING TO REAL PROPERTY WITH RICHARD A. JUAREZ, ET UX: JOB 1597 (PARCE~ 67) APPROVE AND EXECUTE REAL PROPERTY AGREEMENT SUBMITTED BY Dennis Hall INITIATING DEPT./DIV. Construction and Services Division ISSUE: The property owners have requested permission to maintain in place, a solar water heating system within a District easement. BACKGROUND: The solar system consists of solar panels on a wooden frame supported by concrete footings. Staff has determined that the improvements do not interfere with the present use of our sewer; however, if it should become an interference, the agreement requires the property owner to remove the structure within 30 days of notice to do so. RECOMMENDATION: Approve and execute the subject agreement and authorize its recording. RttVIEWED AND RECOMMENDED FOR BOARD ACTION DH Jf!l INITIATING DEPT./DIV. RB " ,fa ,z' pZ ,t49 gZ8 p5 ~, a.,~." ~""". .. ~/~ ~ /"- ~~ ..-::: . . ~~ ( fIt B"5t.pe of pz,g5 pZlr REAL PROPERTY AGREEMENT JOB 1597, PARCEL 67 ALAMO AREA - Contra San BOARD OF DIRECTORS District NO. I V. CONSENT CALENDAR 7 4/5/84 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE April 3, 1984 SUBJECT AUTHORIZE $3,318 IN SEWER CONSTRUCTION FUNDS TO PURCHASE OFFICE FURNItURE FOR THE NEW PLANNING DIVISION MANAGER TYPE OF ACTION AUTHORIZE SEWER CONSTRUCTION FUNDS SUBMITTED BY Robert A. Baker INITIATING DEPT./DIV. Engineering & Construction Department ISSLE: The Board has authoIiized staff to offer the Planning Division Manager position to James Kelly. Mr. Kelly has accep~ed, effective April 16, 1984. Since this is a new position at the District, there is no furniture available from current inventory. BACKGROl..J',ID: Furniture quality and cost practices were established at discussions with the Board during the Home OffiCe Building equipment authorization and purchasing activities. The furniture which is proposed! to be purchased for Mr. Kelly will be identical to furniture previously purchased for division managers for the new office building move. The contract with the R.S.B.I. Company from the Home Office Headquarters Building equipment bid is still in force. TherefOlre, furniture can still be ordered from R.S.B.I. at competitive bid prices. Authorization to purchase the following furniture is requested: o one desk o one desk chair o one credenza o two side chairs o one file cabinet o two bookcases The total cost of this furnit~re will be $3,318.00. This position paper has been placed on the consent calendar because the authorization is less than $5,000 per Board policy. RECOMMENDATION: Auttjorize $3,318.00 in Sewer Construction Funds to purchase office furniture for the new Planning Division Manager. ,REVIEWED AND RECOMMENDED FOR BOARD ACT/ON RAB BOARD OF DIRECTORS NO.V. SOL I 0 WASTE 1 4/ /84 OS On VIA: ROGER J. DOLAN P ITI N r'APER General Manager-Chief Engineer SUBJECT RECEIVE THE APPLICA! ION FOR REFUSE COLLECTION RATE INCREASES BY ORINDA-MORAG~ DISPOSAL SERVICE, INC. AND THE STAFF ANALYSIS THEREON DATE March 27, 1984 TYPE OF ACTION Refuse Collection Rate Review SUBMITTED BY Walter N. Funasaki INITIATING DEPT./DIV. Administrative Accountin ISSUE: An application for refuse collection rate increases has been submitted by Orinda-Moraga Disposal Service, Inc. BACKGROUND: Orinda-Morpga Disposal Service, Inc. submitted an application for a general rate increase of 11.7% which is requested to become effective April 1, 1984. The last rate in~rease authorized by the Board of Directors was made effective on May 15, 19a3. District staff has reviewed the rate increase application and prepared a staff analysis. A copy of the staff analysis and the refuse collector's rate increase application are submitted herewith. During the Public Hearing for the last rate increase, the Orinda Association requested that consideration b~ given to an increase in refuse collection service in Orinda to include one can of trimmings weekly and three seasonal cleanups annually. A survey of prinda customers was conducted by the refuse collector at the Board's request. The survey results and the incremental expense associated with the increased service level are described in the attached staff analysis. In July 1983, a resident of Moraga requested that the refuse collector be required to provide self-addressed remittance envelopes with the quarterly billing statements. The Board determined that it would be appropriate to consider the consequential increased expense in conjunction with the present rate application review. The incremental expense of providing self-addressed remittance envelopes is described in the attached staff analysis. RECOMMENDATION: Consider the District staff's analysis of the rate increase application submitted by Orinda-Moraga Disposal Service, Inc. and conduct a Public Hearing on April 19, 1984. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. cf~~~. WNF PM ANALYSIS OF ORINDA-MORAGA DISPOSAL SERVICE, INC. REFUSE COLLECTION RATE APPLICATION Refuse Collector's Rate Application Orinda-Moraga Disposal Service, Inc. (Orinda-Moraga) submitted its application for re!fuse collection rate increases on March 6,1984. The rate application has been prepared using financial statement formats suggested by Price Waterhouse following its review of the District's refuse collection Tate setting procedures. Orinda-Moraga has requested an 11.7% increase in rates effective April 1, 1984. The requested increase would raise the basic residential rates for existing service levels to $8.65 from $7.75 for Orinda customers, and to $9.20 from $8.25 for residents of Moraga. A copy of the refuse collector's rate application has been appended to this analysis. Rate increases granted to Orinda-Moraga during the last five years are summarized below: Effect i ve Dlate May 15, 1 98!3 1982 Ap r ill, 1 ~81 Apri 1 1, 1~80 January 1, !1979 J u 1 y 1, 19~8 % Increase Service Category 8.6 Not App 1 i ed For 7.7 16.11 6.42 9.28 All All All All All Staff Analysis District staff has, performed an analysis of the refuse collection rate application. The overall objective of the analysis was to evaluate the reasonableness of forecasted operating expenses reported in the rate application and, after giving effect to rate setting adjustments, compute the percentage increase in revenue required to achieve a 95% operating ratio. The results of the staff analysis are shown in the following attachments: Attachment 1 - Ra~e Adjustment Analysis. The percentage increase in revenue requiired to produce a 95% operating ratio based on fore- casted expen~es for the fiscal year ended March 31, 1985 is presented. ~he effect of the percentage increase computed of 9.67% is shown in ~he revised representative rates on Attachment 2. Attachment 2 - Sc~edule of Present and Revised Monthly Rates. Current and revised ~nthly rates for representative services are presented. The revised ~ates are based on the percentage increase computed on Attachment 1. -1- Attachment 3 - Inc~me Statement. Adjusted for Rate Setting. for the year ended Decembe~ 31. 1983. The adjustments for rate setting are identified on this income statement. The cumulative adjustment for rate setting qf $90.000 results in the restatement of a $57.000 loss per book$ to a $33.000 net income. Attachment 4 - Forecasted Income and Expenses. The forecasted income and expenses Tor the fiscal years ended March 31. 1984 and March 31. 1985 are pres,nted. Forecasted expenses are shown net of rate setting adjus~ments. Variances in forecasted revenue and expenses for the fisca' year ended March 31. 1984 prepared in the prior year rate application and the current rate application are shown. Variances between the forecasted expenses for the fiscal year ended March 31. 1985 and March 31. 1984 are also presented. Attachment 5 - Exp~anation of Major Changes in Operating Expenses. Total expense~ are forecasted to increase by 6.0% for the fiscal year ended Ma~ch 31. 1985 compared to forecasted expenses for the fiscal year erded March 31. 1984. Major increases or decreases are explained in this attachment. Attachment 6 - Sch~dule of Residential and Commercial Service Rates for Neighboring Communities. Attachment 7 - Offii cers I Compensat ion. Attachment 8 - Inc!reased Residential Services for Orinda. The incremental expense of prpviding an increased level of service to Orinda residents is described. Attachment 9 - Incremental Expense of Providing Return Remittance Envelopes. Attachment 10 - Re~urn on Equity Computation of Percentage Increase in Forecasted Reyenue Required. Related Party Tra1sactions Acme Landfill Corporation Dividends - The stockholders of Orinda- Moraga. and qther refuse collectors operating in central Contra Costa County. own the Acme Landfill Corporation. As the stock ownership iniAcme is held in the names of the stockholders of Orinda-Morag~. dividends of $9.000 in 1983 and $9.000 in 1982 were received by .hem directly and are not recorded in the refuse collector's financial statements. Dumping fees of $123,000 are forecasted to be paid to Acme by Orinda-Morag~ during the fiscal year ended March 31.1985. A review of dumping c~arges of other nearby dump sites disclosed that Acme's charges are .mong the lowest. -2- _._~---_._".~----_._._-_..._---_._-~----~----- Notes Payable to Stockholders - Notes payable to Frances Navone, President, to~aled $76,616 as of December 31, 1983. A five year note payable with a balance of $56,863 is secured by a truck and bears a 13% interest rate. The balance of the notes payable are noninterest bearing. Conclusion Operating results for the April 1, 1983 through March 31, 1984 fiscal year will not pro~uce a 95% operating ratio because currently fore- casted operating ~xpenses are $79,000 higher than the expenses fore- casted for this p~riod In the prior year's rate application. As the 8.6% rate increas~ authorized effective April 1, 1983 was based on the lower forecas~ed expenses, revenues to be realized will be in- sufficient to pro~uce a 95% operating ratio, in spite of a current revenue forecast ~hich is $19,000 higher than the revenues forecasted last year. As shpwn on Attachment 4, the higher than forecasted expenses are primarily within the wages and payroll related expense accounts. Operating expens~s for the fiscal year ended March 31, 1985 are 6.0% higher than curr~ntly forecasted expenses for the fiscal year ended March 31, 1984. ,The expense Increases are primarily the result of wage and related benefits Increases negotiated in a union contract and the addition !of a maintenance employee. On the basis of its review of the fo~ecasted expenses, District staff considers the expense forecasts to be reasonably stated. The assumptions ~nderlying the forecasted incremental monthly expense of $1.62 per cus~omer for an expanded level of service to Orinda residents descri~ed in Attachment 8 have been reviewed for reasonableness. However, becauseiof the uncertainty in the level of usage, and the customer base over which the incremental expense is to be allocated, it is recommended t~at the $1.50 per month charge indicated in the survey form be regarded as a reasonable surcharge to be assessed if the Increased servic~s are instituted. -3- REFUSE COLLECTION RATE APPLICATION OR liNDA-MORAGA DISPOSAL SERV I CE, I ttC. Rate Adjustment Analysis Forecasted Fiscal Year Ended March 31, 1985 Actual revenue for the year ended December 31, 1993 Fore cas ted revenue for the f i sca 1 yea r ended Ma rch 31, 1984 Forecasted operati~g expenses, as adjusted, for the fiscal year ended March 31, 1985 Forecasted revenue required to produce 95% operating ratio Add: Forecasted franchise fee Forecasted revenue required, adjusted for franchise fee Increase in forec~sted revenue required for the fiscal year ended March 31, 1985 Percentage increase in forecasted revenue required Percentage increaise app1 ied for -4- Attachment 1 $1,825,065 1,864,000 1,935,000 2,036,800 7,500 2,044,300 $ 180,300 9.67% 11.7% RaFUSE COLLECTION RATE APPLICATION OR~NDA-MORAGA DISPOSAL SERVICE, INC. Schedule of Present and Revised Monthly Rates for Repre entative Services Based on Results of Staff Ana 1 ys i s Ori nda Present Residential Service: (1) 1 Can Weekly $7.75 4.25 Each Additional C~n Weekly Multi-Apartment Serv~ce: Per Unit Per Week 6.45 Each Additional P~ckup I Per Week 1.05 Commercial Service: 1 Can Weekly 9.65 4.25 Each Additional C~n Weekly Bulk Service: Cubi c Yard - 1 !Per Week 36.85 64.95 2 Cubic Yards - 1 Per Week Revised $8.50 4.65 7.05 1.15 10.60 4.65 40.40 71.25 Moraga Present $8.25 3.80 6.45 1.05 9.65 4.25 36.85 64.95 Attachment 2 Revised $9.05 4.15 7.05 1. 15 10.60 4.65 40.40 71. 25 Note: (1) Moraga re~idential service includes one 32-gallon can of garden trimmings iper week and three refuse cleanups per year; Orinda service dqes not include these additional services. -5- Attachment 3 Page 1 of 2 RE~USE COLLECTION RATE APPLICATION ORI~DA-MORAGA DISPOSAL SERVICE, INC. Income Statement, Adjusted for Rate Setting Year Ended December 31. 1983 (000 Om i tted) Actual December 31, 1983 Per Application Adjustments Dr (cd As Adiusted Revenue Residential Commercial and Drop Bo~es $1,292 533 1 .825 $1 ,292 533 1 ,825 Operating Expenses Disposal Expense: Dump i ng Truck & Equipment - V.riable: Parts & Materials . Tires & Tire Repair Fuel License & Other Expense 121 121 5 (5) 634 634 110 110 133 133 877 877 57 49 106 114 (114) 171 (65) 106 210 210 45 45 80 80 13 13 348 348 8 8 1 1 1 1 9 9 19 19 Franchise Fees Driver and Helper Exp~nse: Wages Employee Benefits Payroll Taxes & Wortker's Compo Truck & Equipment - F.xed: Depreciation - Tru4k & Equip. Truck Rent Vehicle Repair Expens~: Wages . Employee Benefits Payroll Taxes & WOlrker's Compo Parts & Supplies . -6- Operating Expenses (Cont1d) Other Direct Expense: Wages Employee Benefits Payroll Taxes & Worker's Compo Insurance . Yard Rent & Maintepance Customer Claims General and Administrative: Salaries - Officer~ Salaries - Clerica~ Employee Benefits Payroll Taxes & Worker's Compo Utilities . Postage & Office S~pplies Legal & Accounting! Bad Debts Amortizations - Fr~nchise Cost Advertising & Prompt ion Automot i ve Expense, Dues & Subscriptiors Off i ce Rent T axe s General Expense Total Operating Expenses Income (Loss) Arom Operations Other Income and Exp~nse: Interest Income Ot he r Income Gain or Loss on D~sposal of Assets Interest Expense Insurance Ref. an4 Adjust. Amortization - Fr~nchise Cost Total Other In40me Income (Loss) $efore Taxes Provision for Income Taxes Net Income (Loss) Attachment 3 Page 2 of 2 Actual December 31, 1983 Per App I i cat ion $ 34 5 3 51 12 4 109 111 30 17 11 5 13 10 4 5 8 5 7 1 6 233 $1 ,883 (58) 1 5 6 (12) 9 (8) 1 (57) $ (57) -7- ~. _______..._.____.__.<-__0___ ..__~____.____._____._i-____H'._.______~_........__,~_,',N_"'__ Adj ustments Dr (Cr) 8 (8) ""8 (8) (70) 12 20 $ 90 As Adj usted 8 $ 34 5 3 51 12 4 109 111 30 17 11 5 13 10 4 5 8 5 7 1 6 233 $1 ,813 12 1 5 6 9 21 33 $ 33 .. .. ... ~.... l~ u " II ...en "'" CA. ;;.. . .1:.- ~~~ z: -,;I ~"~I=~~~ "II) 0 II...... ~ K ~ .... ~ OIl .... ... OIl " " U ~ ~ ~ ';l;\ '" ~i ~ I " r-> ~~ ~~ ~ !....!I II I 0 ~ OIl - I... ~ ~ ~ ~ II _ IIa:K U .... .. - .I:. I" III .. U A....O ... 0 :. i ~ -,;I " -,;I C ~~ " I ~I ! ... ..OIl ~ ~ .. " .. .. :I 0 U.... " U OIl .... ....!I" o COIl " ~ ...>11 C " "a:K U .... ..- " III .. A.'" 0 ~ OIl -,;1:1 " 0 ...-.. 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Explanatibn of Major Changes in Operating Expenses Forecbsted Fiscal Year Ended March 31, 1985 The following are explanations of major changes in forecasted expenses for the fiscal year ende~ March 31, 1985 compared to the forecasted expenses for the fiscal year ~nded March 31, 1984 which are presented on Attachment 4: Driver and Help~r Wages - The forecasted increase of 5.3% is primarilly the result of scheduled garbagemen's wage increases pf 4.5% to 5.5% negotiated in a new multiyear Teamsters ~nion contract. Driver and Help~r Employee Benefits - The forecasted increase of 5.5% isl primarily the result of increased employer contributipns to health and pension plans provided in the new Te~mster Union contract. Driver and Help~r Payroll Taxes and Worker's Compensation - The forecastedl increase of 5.2% is primarily the result of in- creases ini wages. Truck & Equipmelnt - Depreciation - The forecasted increase of 16.2% is biased on the acquisition of two new trucks during the fiscal! year. Truck and Equip~ent - Parts & Materials - The forecasted decrease of (5.4%) lis primari ly the result of anticipated expense reductionsl achieved through implementation of a maintenance program u~der a full-time maintenance employee. Vehicle Repair !Expense - Wages Vehicle Repair iExpense - Employee Benefits Vehicle Repair IExpense - Payroll Taxes & Worker's Compensation The forec~sted increases of $18,000, $3,000 and $5,000 in these resAective accounts are the result of the employment of an indilvidual during the last half of the prior fiscal year into la newly established position for maintaining the refuse col!lector's trucks and equipment. The wages and related e~ployee benefits and payroll expenses for a full year are Rrovided in the fiscal year ended March 31, 1985. -12- Attachment 5 Page 2 of 2 Other Direct E~pense - Wages - The forecasted increase of 5.9% provides or an increase on a portion of the salary of one of the of icers of the refuse collector who is active in the field Icollection operation. I i General and Ad~inistrative Salaries - Officers - The forecasted increase ~f 5.4% is the result of projected salary and bonus paY1ents to officers. I I General and Administrative Salaries - Clerical - The forecasted increase lof 6.7% is the result of salary increases projected for cleridal employees. I ! -13- '" N ... c'" 1~ u .. II ...'" ... .. C'" ... . ~~I ~ ::J N I C II II C- .U u II II ~ ~ ~u .. O~t.I ~ ~"";, ...... V! o .. u ... .. &. ... ~ ... .. ... ::J U C V! .. U V! > .. .. '" '" ... I- z: ::> I o u '" z: '" o .. :z: '" ... z: '" o ... '" S II li 1i g u.-c ....... ... -u C..... NO... C V! 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II c: ... l " " :r 1! i " i .. o " r .. i I " ... c: .. o -15- - =- " " .. .. 8. 8. .. .; c; >- >- .. .. = " " > ~~ o >- '" .. ... ... ... ... - z .J(. .J(. . :: .. .. ... ... II " ... " II: c: " '" ... ... ::J ::J c: c: i ~ ... c: " i ... '^ N '^ 2 .... '^ " j ... .. > 1 2 o ... >- ... ... 1 : '^ ao ..... , ... c: " .. ~ i ... ... .. .. o H ... '" ... ..; .! II a. i t .. ... .. c .. " II .. ~ 'i .. .. .. ... ... " " II: II: .; :It: .. o ... :< .. .9 "" '" & j .. - :It: II i - ~~ Attachment 7 R~FUSE COLLECTION RATE APPLICATION ! OR.NDA-MORAGA DISPOSAL SERVICE, INC. OFFICERS' COMPENSATION FOR THE YEARS ENDED DECEMBER 31, 1983 AND 1982 Salary, Bonus, & Director's Fees Off i ce r Title 1983 1982 Frances Navo~e President $ 48,520 $ 48,623 George Navon~ Vice-President 45,100 44,208 & Treasurer Donald Navon~ Secretary 46,250 46,308 Joseph Navon~ Director 5,496 5,496 $145,366 $144,635 The officers. compe~sation shown above represented 7.67% and 8.51% of 1983 and 1982 operating ,xpenses, respectively. The salaries, bonuses and director. s fees for,caste,d for the fi sca 1 year ended March 31, 1985 of $154,000 represent i 7.96% of forecasted operating expenses. Pension expenses fot 1983 for the President, Vice-President and Treasurer, Secretary, and Direttor were $13,346, $1,877, $1,355, and $2,012, respectively. A comparison of the'above officers' compensation to average compensation levels reported in the American Management Association.s "Compensation Pol icies and practifes for Smaller Organizations" publ ished in January 1984 indicates that the tefuse collector.s officers' compensation is reasonable. -16- Attachment 8 ~EFUSE COLLECTION RATE APPLICATION ORII NDA-t10RAGA DISPOSAL SERV I CE, I NC. , Incrbased Residential Services For Orinda On May 5, 1983, th~ Orinda Association requested that consideration be given to an increa~e in refuse collection service to Include one can of trimmings weekly alnd three seasonal pickups annually. As a result, a survey was conduct~d by the refuse collector of each of the 5,504 residential custo~rs in Orinda during October, November and December 1983. The survey results:, tabulated in March 1984, follow: Total Culstomers Surveyed Total Relsponses Received Percenta~e of Responses Received 5,504 3,711 67% Survey ~sults: Favori Additional Services No Preference Oppos~d to Additional Services 1,909 554 1,248 3,711 51% 15 ..l!: 100% The Inclusion of ~he 15% of respondents with no preference to the 51% favoring an Incre~sed level of service produces a total of 66% of respondents who arle not opposed to the additional services. The incremental e~pense to the refuse collector of providing the additional servicds is difficult to determine as it is largely dependent on the extent of ~sage by Orinda residents of the trimmings and cleanup services. Additlo~allY' because of the topography of the area, certain Orinda residents are intended to be given the option of obtaining the additional servic ,s or being exempted. Based on usage and customer base assumptions, the ~efuse collector has estimated the following Incremental expense per customer: Annual Ilncremental Expense for Garbagemen, Truck iExpenses and Other Operat i ng Expenses ~97 , 142 Customer! Base Annual ~xpense Per Customer Month 1 y iExpense Per Customer . 5,000 $ 19.48 $ 1 . 62 The customer surv~y described above requested an indication of preference based on the incr~ased service level being provided for an additional charge which was ~stimated to be $1.50 per month. Because of the uncertainty in the extent of usage, and the number of customers who will permissively be e~empted, the $1.50 charge is regarded as a reasonable monthly assessment for the additional services. The refuse collec~or will be able to implement the new service levels in Orinda within ~wo to three months following authorization by the Board of Directors. -1]- Attachment 9 ~EFUSE COLLECTION RATE APPLICATION ORINDA-MORAGA DISPOSAL SERVICE, INC. Incremental Expense of Providing Return Remittance Envelopes On July 30, 1983, a resident of Moraga requested that the Board of Directors require the refuse collector to provide self-addressed remittance envelope!s with the quarterly invoices. The Board determined that the request should be considered during the next application for rate increase. Orinda-Moraga Dispolsal has estimated the annual incremental expense of providing return envelopes with all quarterly invoices to be as follows: $1,704 1,000 Envelopes Labor $ 2, 704 The incremental expense of S2,704would result in an increase in the percentage increase in forecasted revenue required, shown on Attachment 1, from 9.67% to 9.83%~ Because service rates are rounded to the nearest 5 cents, the effect of the higher percentage increase required on the monthly rates for representative services, shown on Attachment 2, is as fo 11 ows : Residenti~l Service Multi-Apartment Service Commerci ail Servi ce Bulk Service No Change 5 Cents Increase No Change 10 Cents Increase -18- -----~--_._.,'-_..._-~---,--_._-~-,.,._-~.._~---,-~_...-.-----. REtUSE COLLECTION RATE APPLICATION ORI~DA-MORAGA DISPOSAL SERVICE, INC. RETURNiON EQUITY COMPUTATION OF PERCENTAGE INCRtASE IN FORECASTED REVENUE REQUIRED Attachment 10 The computation of ~rinda-Moraga's percentage increase in forecasted revenue required un~er the Return on Equity method using a 20% rate of return is presented; below. A 20% rate of return was used in consider- ation of Price Waterhouse's suggested 14% to 20% range and the following industry and general business rates of return: 1983 average 90-day Treasury Bill rate 8.5% Industry Return on Equity %: 1982 31.2 16.1 1981 19.4 22.5 Browning-ferris Waste Man~gement **** Stockholders' ~quity as of December 31, 1983: Capital Stock Capital cpntributed in excess of par value Retained ~arnings Stoc~holders' equity Restatemeht to give effect to lease cap i ta l!i zat i on for f i sca 1 year ended March 311, 1984 Stocikholders' equity, as restated Add: Notes p.yable to stockholders Own~rs' equity Rate of return Net !income, after Income taxes Add iback est imated income taxes Incdme before income taxes Forecasted op~rating expenses for the fiscal year ended March :31, 1985 Addi Interest expense $58,126 Less: Interest paid to s~ockholder (7,000) Add: Allowable profit Less: Other income For~casted revenue required For~casted revenue at current rates Inc~ease in forecasted revenue required Per4entage increase in forecasted r~venue required -19- $ 6,000 11 ,987 86 ,181 104,168 47,531 151,699 75,000 226,699 20% 45,340 $ 45,340 $1,942,000 51 , 126 1 ,993 ,126 45,340 (1 ,000) 2,037,466 1,864,000 $ 173,466 9.31%