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Home My WebLink AboutAGENDA BACKUP 09-15-83 ./ ..../"..,.~..- ( 'I I \}', \, . J ',,;. , .....' ~ /~.- '.: ,. .. . ~ .' r c. : { f"" ,,'*~ ,.' ~ t' '&4'"' r"" ,. tr (~:~ ,'" ~ ~:, .. . ..-'Of ... \ " ~~. ~ " " .: t... ~ t_ <(t..""f. \..' '-~ \... 0 .,_ -. or...: 1.. It' " t _ L "..1 r,. " . 't, : ; r~ .~ n.G;' BOARD OF DIRECTORS POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer NO. IV. Bids & Awards 1 9/15/83 DATE Sept. 8, 1983 SUBJECT AWARD CONTRACT FOR DISTRICT PROJECT 3586, SCHEDULE A, AS AMENDED, LINE M-6 CATHODIC PROTECTION SYSTEM AND AUTHORIZE $37,337 FROM SEWER CONSTRUCTION FUNDS TYPE OF ACTION AWARD CONTRACT AUTHORIZE FUNDS SUBMITTED BY Dave Johnson INITI~TIN<i DEPT.(DIV. . . . tnglneerlng Dlvlslon ISSUE On September 6, 1983, sealed bids were received and opened. for District Project No. 3586, Schedule A, Amendment No.1. The Board of Directors must either award a contract within 30 days of the opening of sealed bids or reject all proposals. BACKGROUND The Martinez Line, M-6, consists of 5050 linear feet of two 20-inch diameter steel force mains. The pipes are in a corrosive environment and require cathodic protection. The existing cathodic protection system is not providing adequate protection and is nearly depleted. Thus a new cathodic protection system is required. Harco Corporation was retained to desi~n a new cathodic protection system for both the M-6 (Schedule A) and M-2 (Schedule B) lines. Currently only the M-6 design has been completed. TheM-6 design consists of a deep well anode, impressed current installation, which will require relatively specialized work for drilling the deep well. To date the Board has authorized $40,500 for the following items: a. Harco engineering contract for both M-2 and M-6 b. District force account effort through design c. District prepurchase of cathodic protection equipment for the M-6 project. On September 6, 1983 sealed bids for the Line M-6 Cathodic Protection System were received and opened. The bid tabulation is attached. Due to the deep well drilling requirements only two bids were received by the bid opening deadline. The low bidder is Smith & Denison, Inc. at $18,780. The engineer's estimate was $25,810. A post bid/preconstruction cost estimate is attached. The total M-6 project cost is estimated at $60,337.. At this time $37,337 in additional funds are required for the M-6 installation contract, construction contingencies, and force account costs for contract administration and construction inspection. Harco Corp. has been retained to provide construction inspection support, O&M manual, and REVIEWED AND RECOMMENDED FOR BOARD ACTION CWS Vb JL If{j!, RAB startup/acceptance testing. This project is included in the 5-Year"Capital Expenditure Plan. The new District overhead rate for force account work on capital projects has not yet been calculated. The project budget will be credited with the appropriate funds when the new overhead rate is available. RECOMMENDATION Award a contract for District Project No. 3586, Schedule A, as amended to Smith & Denison, Inc., the lowest responsive, responsible bidder, per their proposal received September 6, 1983. Authorize $37,337 in Sewer Construction Funds for the construction contract, contingencies, and District force account costs. .. REVIEWED AHD RECOMMENDED FOil BOARD ACTlOH INITIATING DEPT./DIV. GEN. MGR.lCHIEF ENG. POST BID - PlltCONSTHUCIION lSTI;.\AlE OF COSTS FOR DISTRICT SEWERING PROJECT No. 3586. Schedu1 e A, Amendment No. 1 % CONST. ITEM DESCRIPTION ITEM AMOUNT TOTAL CONTRACT 1.a Equipment Prepurchase $5,500 1. b Construction Contract (As Bid) . . . . $ 18,780 2. Estimated Construction Contingencies 19 25% . $ 4,700 28,980 100% 3. Estimated Construction Incidentals to Project Completion . Survey. . . . . . $ 400 Inspection fA Contr~ct A.dministration . . $ 3,000 Engineering Divis.ion . . . $ 500 Harco Corp - Construction Support 4,350 Total Estimated Construction Incidentals . $ 8.250 $ 8,250 ?R% 4. As Sui 1t Drawi ngs . . . . . . . . . . $ 500 2% 5. Total Estimate Required to Complete Project . . . . . . . . . $ 37,730 130% 6. Pre Bid Expenditures Survey, Engineering, Printing, Advertising . $ 9,085 Harco Corp. . $ 13,522 Right-ot-Way Acquisition. . . . $ 0 7. Total Preconstruction Incidentals (as of 7/31/83 ) . . $ 22,607 $ 22.607 78% 8. Total Estimated Project Cost . . . . . . $ 60,337 208% . (Items 5 & 7) 9. Funds Previously Authorized (tv1-Q p.orti Qn .on)y} . . . . . . . $ 23,000 10. Total Additional Funds Required to Complete Project. . . . . . . . $ 37,337 (Item 8 minus Item 9) 2050~-78 Central Contra Costa Sanitary District DUMMARV OF Oil ~ PROJECT NO. 3586 - CATH. PROTECT. SYS., LINE M-6 NORTH COURT ST., MARTINEZ LOCATION DATE 9-6-82 $ 25 810 ENGR. EST. ' I[ \Y CIDDER (Nome, telephone & address) DID PRICE ..-=- SMITH & DENISON ( 415) 782-9788 $ 18,780 1 1581 Industrial Parkway West, Hayward 94544 AMERICAN CONST. & SUPPLY, INC. ( 415) 647-2198 $ 21,700 2 3295 Mission St.. San Francisco 94110 f--- ( ) $ . . ( ) $ . ( ) $ - ( ) $ - ( ) $ ( ) $ ( ) $ - ( ) $ - ( ) $ . !-- ( ) $ PREPARED BY DAVE JOHNSON DATE 9-6-83 SHEET NO. 1 OF 1 Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. v. Consent Calend~r 3 9/15/ts3 On I VIA: ROGER J. DOLAN POSITI N ~APER General Manager-Chief Engineer DATE September 6, 1983 TYPE OF ACTION SUBJECT AUTHORIZATION FOR P.A. 83-17 (ALAMO) TO BE INCLUDED IN A FUTURE FORMAL ANNEXATION TO THE DISTRICT ACCEPT FOR PROCESSING Denn i s Ha 11 I INITIATING DEPT.!DIV. Construction & Services Division SUBMITTED BY Parcel No. Area Owner Address Parcel No. & Acreage Remarks Lead Agency 83-17 Alamo Arven R. Scott 938 Danville Blvd. Alamo, CA 197-090-008 0.89 Ac. Fail ing septic system. Owner to connect to publ ic sewer. District to prepare "Notice of Exemption.11 CCCSD RECOMMENDATION: Authorize P.A. 83-17 to be included in a future formal annexation. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT.!DIV. ~ /1;;1 Ii /h/{J GEN. It! All. ~ , 'n:HIE ENG. r I,. '-I. V ,,,,y ~/ .~ ~, " .9 ALA~O PROPERTIES :0 t 139 3€e. A" .,.",...;r",~'<li. loe I Be l..C 3- '360 AC fl:A. 8S- /7 BOARD OF DIRECTORS POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer NO. VIII. Sol id \4aste 1 DATE September 6, 1983 R~ETVE STAFF ANALYSIS OF THE APPLICATION FOR GARBAGE RATE INCREASE BY VALLEY DISPOSAL SERVICE, INC. AND SET PUBLIC HEARING FOR OCTOBER 6, 1983. TYPE OF ACTION GARBAGE RATE APPLICATION REVIEW SUBMITTED BY \-/a1ter Funasaki INITIATING DEPT./DIV. Administrative/Finance ISSUE: An app1 ication for garbage rate increases has been submitted by Valley Disposal Service, Inc., Diablo Disposal Service, Inc., and Lafayette Garbage Disposal Service, Inc., garbage franchise holders for Zones 4, 5 and 2, respec- tively. BACKGROUND: A 2.53% rate increase in residential rates is being applied for by Valley Disposal Service and its Diablo Disposal division. The Lafayette Disposal division is not applying for an increase in its residential rates. The last residential rate increase authorized by the Board of Directors was 5% made effective April 1, 1982. An average commercial rate increase of 6.67% is being applied for by Valley Disposal Service and its Diablo Disposal division. This would increase commercial rates in Zones 4 and 5 to the same level that currently exists in Zone 2. The last commercial rate increase in Zones 4 and 5 authorized by the Board of Directors was 10.36% made effective iJuly 1, 1982. Zone 2 commercial rates have remained unchanged since April 1, 1981. An 8.24% increase in debris box rates is being applied for in all three Zones. District staff has reviewed the rate increase application and prepared a staff analysis. A copy of the staff analysis and the refuse collectors' rate increase application are transmitted herewith. The Price Waterhouse suggestions which were authorized by the Board for implementation were effected and are described in the staff analysis. RECOMMENDATION: Consider the results of the District staff's review of the rate increase application of Valley Disposal Service, Inc. and set a Public Hearing for October 6, 1983. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITI?,NG DEPT./DIV. .t1~~- ENG. ANALYSIS OF VALLEY DISPOSAL SERVICE, INC. GARBAGE RATE INCREASE APPLICATION A garbage rate increase application has been submitted by Valley Disposal Service, Inc. and its divisioms, Diablo Disposal Service, Inc. and Lafayette Garbage Disposal Service, Inc., which are franchise holders for Zones 4, 5 and 2, respectively. T~e rate increases are requested to be effective as of August 1, 1983. District staff has performed an amalysis of the franchise holders' rate increase application. The overall objective of the analysis was to evaluate the reasonableness of the expense projections contained in the application and to compute the percentage increase in revenue required to produce a 95% operating ratio, after giving effect to rate-setting adj ustments. Rate Increases Requested The three franchise holders (Valley Disposal) have requested a total rate increase of 2.2% based on a $111,525 increase in revenues necessary to produce a 95% operating ratio. The rate increase is proposed to be allocated as follows: 1. To increase debris box rates in all three zones from $4.25 to $4.60 per cubic yard, representing an 8.24% increase. 2. To increase commercial rates for Zones 4 and 5 (Valley Disposal and Diablo Disposal) to the s~me rates charged in Zone 2 (Lafayette Disposal) since April 1, 1981. These rates would increase by an average 6.67%. 3. To increase residential rates, in Zones 4 and 5 (Valley Disposal and Diablo Disposal) by 2.53%, with no increase in residential rates in Zone 2 (Lafayette Garbage Disposal). Staff Analysis Methodology The staff analysis was completed by performing the following tasks: . Review the rate increase application for completeness and arithmetical accuracy. Review the statement of operation for the calendar year ended December 31, 1982 incorporated in the rate increase application, and verify its accuracy by comparison to the financial statements audited by Valley Disposal's certified public accountant. Review the reasonableness of the projected statement of ~perations for the fiscal year ended March 31,1984 submitted 1n support of the rate increase application. . . -1- ~, . Review the reasonableness of the allocation of the total rate increase requested to deb!ris box, commercial and residential rates by zones. Based on the results of the ana1ys1is, the projected expenses for the fiscal year ended March 31, 1984 by Valley Disposal are consi- dered to be reasonably stated. Summary of Schedules Included 1. Statement of operations for the year ended December 31, 1982, and projected expenses for th~ fiscal year ended March 31, 1984. Statements are presented for each of the Valley Disposal franchise holders, as well as Ifor Diablo Disposal and Valley Disposal combined and for all three franchise holders combined. In these statements, adjustments are made to certain expenses to eliminate expenses not allowed for rate setting purposes and to restate expenses which are treated differently for financial statement presentation than for rate-setting purposes. 2. Rate adjustment analysis, in which the percentage increase in revenue required to produce a 95% operating ratio,is calculated. The return on investment produced by the calculated revenue increase is also presented. 3. Schedule of comparative increases in expenses. This schedule compares increases in major expense categories to prior years. 4. Comparative ratio analysis schedule. This schedule presents operating ratios, return on investment and rate increases for each of the Valley Disposal franchise holders. 5. Schedule of residential and cQmmercial service rates and service levels for selected garbage collection companies serving neighboring communities. Explanation of Significant Changes The combined expenses for the Valley Disposal franchise holders are projected to increase by 8.0% during the fiscal year ended March 31, 1984. Eleven of the twenty-two expense accounts shown in the statement of operations are not projected to increase. ~xpenses which ar~ projected to increase greater than 5% are explained on the page following the statement of operations. Related Party Transactions and Other Information In 1982, Valley Disposal leased t~irteen trucks from F & F Leasing, six of which were leased by the Distri~t's franchise holders. For rate- setting, the leased trucks are capitalized and the projected expenses -2- for the fiscal year ended March 31. 19$4 excludes truck lease rent expense and includes depreciation and interest expense. Valley Disposal and other garbage ,collection companies operating in Central Contra Costa County own the Acme Landfill Corporation (Acme). During 1982. Valley Disposal paid $617,719 in dumping charges to Acme, $409,869 of which is applicable to operations in the District's jurisdiction. Valley Disposal received $27,000 in dividends from Acme during 1982 and $108,000 in 1981. These dividends wer, recorded as nonoperating income and are excluded from the rate-setting1analysis. Acme increased its dumping charges from $l.OO/cubic yard to $1.25/cubic yard on April 1, 1983. A review of charges of other ne~rby dump sites disclosed that Acme's charges are still among the lowest. No bonus or pension contributions for A. Fiorentinoare included in projected expenses. Implementation of Consultant's Suggest1~ On April 7, 1983, the Board of Directors determined that the following suggestions by Price Waterholllse were to be implemented in the analysis of the present rate increase ~pplication: 1. Operational information should be included as part of the rate application. ValleY~Disposal provided tbe following operational informa- tion fQr_ use 1n the rate anabrsis:. Number of customers Iby zone by class Number of drivers a~d helpers by zone Number of revenue p~oducing trucks by zone Number of tips at Aqme Landfill 2. Franchise fees should be excl~ded from allowable operating expenses in calculating the r~venue requirement under the Operating Ratio method, and s~ould then be added to the revenue requirement so determined to produce the total revenue requirement. Franchise fees were excluded ~rom a)lowable operating expenses and the revenue requirement was d~termined as described above. 3. Return on Equity as a method qf calculating allowable profit should be provided to the Board in addition to the customary Operating Ratio calculation. The computation of Valley DisRosal's allowable profit under the Return on Equity method usling a 20% rate of return is "' - .)- - ). presented below: Stockholders' Equity as lof December 31,1982: Capital Stock Retained Earnings Total Apportionment to Distric~'s Jurisdication Based on ~evenues for Year Ended 12/31/82 j Rate of Return Net Income After Income ~axes Add Estimated Income Ta~s Allowable Profit Operating Expenses As Adjusted Add: Franchise Fees $14,241 Interest 511,656 Allowable Profit Revenue Required Projected Revenue Increase in Projected Revenue Requi t'ed Percentage Increase In Revenue Requi red $ 9,800 1,135,859 $1,145,659 59.2% 678,230 20% 135,646 111,883 $ 247,529 4,793,749 65,897 4,859,646 247,529 5,107,175 4,948,767 '$ 158,408 3.2% The use of the Return on EqUit~. method produces a percentage increase in revenue required 0 3.2%, which is slightly higher than the 2.3% increase determi ed under the Operating Ratio method. A 20% (after tax) rate of return was used in considera- tion of the consultant's sugge~ted 14% to 20% range and the following industry and generall business rates of return: 1983 average 90-day Trea~ury Bi 11 rate 8.5% Industry Return on Equity %: Browning-Ferris Waste Management 1982 ~ 16.1 1981 19':4 22.5 4. Officers' compensation should pe reviewed for reasonableness by referring to industry compe~sation guides. -4-< The compensation of Valley Disposal's officers are summarized below: Projected Fiscal Year 3/31/84 Officer sa 1 a ry $ 23,500 Pension Angelo Fiorentino (Former President) Francise Fiorentino (presiderlt) Anne Grodin (Treasurer) Marshall Grodin (Gen'l Manag~r) Controller Provision for Future Position and Bonus 50,250 40,000 40,000 25,500 35,750 $215,000 $ 91,004 (1) 11,430 1,296 $103,730 (l) Excl uded from rate-setting A comparison of the officers', compensation shown above to average compensation levels ~eported in the American Management Association's "Compensation Policies & Practices for Smaller Organizations" published in Jjanuary 1983 indicates general conformity with the published average compensation levels. Conclusion Valley Disposal has requested the! allocation of the rate increase to specific categories of service: incr~ase debris box rates by 8.2% in all zones; increase commercial rates in Zqnes 4 and 5 to the same level in Zone 2; and to increase residential raites in Zones 4 and 5 to the extent 'J of the remaining revenue increase. The rate increases proposed by Valley Disposal are based on realizing the calculated annual revenue increase during the eight month period, August 1, 1983 through March 31,1984. The following schedule presents the allocation of the calculated annual revenue increase of $114,671 with apportionment to drop box and commercial rates for an eight-month period, with the balance being ascribed to residential rates. Alternatively, a presentation of the effect of determining the rate increases based on apportioning the calculated annual revenue increase for a twelve-month period is also presented. -5- VALLEY DISPOSAL SERVICE REQUESTED REVaNUE INCREASE Fiscal Year Ended March 31, 1984 Zone 2 Zone 4 Zone 5 Zones August - March Per i od Lafayette Vall ey Diablo 2, 4, & 5 Drop Box: Annual rate 8.2% 8.2% 8.2% 8.2% 8 mos. (Aug-Mar) 9,165 28,910 8,690 46,765 Commercial: Annual rate 5.2% 5.2% 3.9% 8 mos. (Aug-Ma r) 14,977 6,029 21 , 006 Residential: Annual rate 2.8% 2.8% 2.3% 8 mos. (Aug-Mar) 26,429 20,471 46,900 Total Increase: Annual rate 1.3% 4.4% 3.6% 3.5% 8 mos. (Aug-Ma r) 9, 165 70,316 35,190 114,671 12 Month Period: Drop Box: Annual rate 8.2% 8.2% 8.2% 8.2% 12 mos. 13,748 43,365 13,035 70, 148 Commercial: Annual rate 5.2% 5.2% 3.9% 12 mos. 22,466 9,043 31 ,509 Res i dent i a 1 : Annual rate 0.5% 0.5% 0.4% 1 2 mos. 7,334 5,680 13,014 Total Increase: Annual rate 1.3% 3.0% 1.9% 2.3% 12 mos. 13,748 73, 165 27,758 114,671 -6- )..'- ... ex> '" ;;; ~ \J L .. :c .., CJ .., I: W L .. CJ > .. \J <II ... .., CJ ... \J CJ 0 L ... ~ ex> '" .... ~ \J L .. :c W .., " ~ .., I: w w > < V> L ... Z .. < 0 " ..J > ~ a:: .. N W \J ~ <II W 0 Z ... ... 0 .t'- 0 .., I: ..J !;; .. < W N V> :c ex> 0 w '" ... ~ V> N ~ 0 V> ex> '" > W L ..J " ;;; ..J .J:l < ~ > L \J " .8 0 e .., CJ " \J .., CJ I: 0 W L .. .. " :J > ... \J < " <II .. ".... L \J ~ " <II'" .. C " :J ~ ~ 1:< <II:~" < :J .., < ~~ eU ... <II :J L -,0 .., < ";~ L .. " \J ...- < ... ~I o " > ...." a:: ~"": ~"": ":'1'=:1 4004 0 Ll'\N__ 0 __ONr--.. ,..:. r--:ai ~ai ~N- ~""'C04 ,.... 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"'" oil Vl CU L.X:J X-CU-lIlt:I"-LIJ C enQlQ.O'l "" ~.oVl CUOL.4nW:Jo-"1I to ::"CEL. ~,,: C "L. 0.11)1--" 11)- "....C>- . ~CXIlOtU ,,~I~tU tO~- 0 U~ ~< 0 C ~tO~tOuc5~;fltJcu~""[II~' I eg'g-"-en"Z~i It) lien to>jInCII_CtJu ....,.wI-"-.wV)CL.tOtO" ~~=~-L.g'1 o_:ci~otOa::i' ~~I""'~CUlt:l.eUIU< -"-0011- -u~a:: 1n~L.IIlL.L. ~~U-UIUUL. ~~~Q.tQ.~~ i!x;~g~~~~~~~~~f~::.! ~~:~~!~~~~~~~~~~~~;~~;6~o~6~ 0. o -11- ~ ~ OIl ... C " ~ .. ~ Vl ~ ~ C o ... OIl ... C " E ... OIl " ...., ." .. ... o '" C OIl C o ... .. '- 8- o ... .. C .. 0. l( '" EXPLANATION OF 1DJUSTMENTS (1) To correct error in Deprecfatioh and Amortization Expense in original application To exclude franchise fees from qperating expenses for revenue requirement calculation purpose~; the franchise fee is added to the revenue requirement. (2) (3) To exclude pension plan contribJtion for president for rate setting purposes. (4) (5) To exclude interest expense for rate setting purposes. To adjust audited figures for l~ased equipment which is treated as rent expense for financial s~atement presentation but capitalized for rate setting pu~poses. (6) (7) To exclude amortization of fran~hise cost for rate setting purposes. To adjust audited figures for l~ased equipment which is capitalized for financial statement present~tion but treated as rent expense for rate setting purposes. (8) To adjust franchise fees to inc ude cost of Price Waterhouse rate setting study amortized over th ee years. -12- EXPLANATION OF SIGNIFI ANT CHANGES IN PROJECTED EXPENSES (ZO ES 4, 5, AND 2) Salaries and Wages - the projected increa~e of 7.0% is primarily the result of garbagemen's salary increases ir excess of 5% negotiated in a new Teamsters Union contract. Payroll Taxes - the projected increase increases in salaries and wages. of 7.1% reflects the effect of i Employee Benefits - the projected increas~ of 7.9% is primarily the result of increases in salaries and wagesl. i Worker's Compensation Insurance - the 23.~% projected increase is primarily the result of increases in premiuml rates and higher salaries and wages. Dumping Charges - the 13.5% projected in~rease is primarily the result of a 25% increase in dumping fees effec~ive April 1, 1983. Telephone and Utilities - the 10.0% proj~cted increase reflects anticipated utility rate increases. Box Repairs - the projected increase of 517.2% includes scheduled refurbishing of drop boxes by sandblasting, re~ova1 of dents, and repainting. Truck Repairs - the projected 11.1% incr~ase is the result of increases in cost of parts and scheduled repainting of trucks. Depreciation and Amortization - the proj~cted increase of 6.8% includes full year depreciation on trucks purchased in 1982 and the addition of a new truck in 1983. -13- ~ iY DISPOSAL (ZON 2 - LAFAYET RATE ADJUSTMEN~ ANALYSIS Fiscal Year Ended ~arch 31, 1984 Actua 1 revenue, yea r ended December! 31, 1982 Projected revenue, fiscal year ende~ March 31, 1984 $1,006,978 1 ,063,283 976,771 Projected operating expenses, as adjusted, fiscal year ended Ma~ch 31, 1984 Projected revenue required to produFe 95% operating ratio 1 ,028, 180 Projected revenue required, adjusted for projected franchise fee I 3,134 $1,031,314 Add: Projected franchise fee Increase in projected revenue requi~ed, f i sca 1 yea r ended Ma rch 31, 1984 . (31,969) Projected net income 51,409 (3.0%) Percentage increase in revenue required Percentage increase in revenue requlested Percentage increase in revenue com~uted 0.9% (3.0%) Investment Base: Accounts Receivable Fixed Assets $ 88,134 116,014 $ 204 , 1 48 Projected Return on Investment 25.2% -14- _LEY 0 I SPOSAL ( ZOINE 4 - VALLE'. RATE ADJUSTMEN~ ANALYSIS ! Fiscal Year Ended rarch 31, 1984 Ac tua 1 revenue, yea r ended Decembe r! 31, 1982 $2,380,704 I Projected revenue, fiscal year endeld March 31, 1984 2,422,829 Projected operating expenses, , as adjusted, fiscal year ended Malrch 31, 1984 , 2,343,897 Projected revenue required to prodJce 95% operating ratio 2,467,260 Projected revenue required, adj usted for proj ected franch i se Ifee 8,261 2,475,521 Add: Projected franchise fee I Increase in projected revenue requ.1red, fiscal year ended March 31, 1984 52,692 Projected net income 123,363 Percentage increase in revenue required 2.2% Percentage increase in revenue reqyested Percentage increase in revenue computed 2.9% 2.2% Investment Base: Accounts Receivable Fixed Assets Parts Inventory 214,685 514,325 98,930 $ 827,940 Projected Return on Investment 14.9% -15- ."'-..,_..,..._..._....-_._~..-". \LLEY DISPOSAL (ZO~E 5 - DIABLO RATE ADJUSTMENT ANALYSIS Fiscal Year Ended ~arch 31, 1984 Projected operating expenses, as adjusted, fiscal year ended Ma~ch 31, 1984 $1,430,854 1,462,655 1 ,473,081 Actual revenue, year ended December 131, 1982 Projected revenue, fiscal year ende~ March 31, 1984 Projected revenue required to produ$e 95% operating ratio 1,550,612 Projected revenue required, adjusted for projected franchise fee Increase in projected revenue requi~ed, fiscal year ended March 31, 1984 . 5,991 1 ,556,603 Add: Projected franchise fee 93,948 Projected net income 77,531 Percentage increase in revenue required 6.4% Percentage increase in revenue requfsted Percentage increase in revenue comp~ted 2.4% 6.4% Investment Base: Accounts Receivable Fixed Assets 124,904 142,840 $ 267,744 Projected Return on Investment 29.0% -16- VALLEY 5POSAL (ZONES 4 & 5 - VALLEY & BLO) RATE ADJUSTME1T ANALYSIS Fiscal Year Ended IMarch 31, 1984 i Actual revenue, year ended Decembe~ 31, 1982 I Projected revenue, fiscal year end~d March 31, 1984 Projected operating expenses, as adjusted, fiscal year ended M1rch 31, 1984 I Projected revenue required to prodyce 95% operating ratio Add: Projected franchise fee Projected revenue required, adjusted for projected franchise fee Increase in projected revenue requ~red, fiscal year ended March 31, 1984 Projected net income Percentage increase in revenue required Percentage increase in revenue reqJested Percentage increase in revenue com~uted Investment Base: Accounts Receivable Fixed Assets Parts Inventory Projected Return on Investment -17- $3,811,558 3,885,484 3,816,978 4,017,872 14,252 4,032,124 146,640 200,894 3.8% 2.7% 3.8% 339,589 657, 165 98,930 $1,095,684 18.3% "" , , , VALl DISPOSAL (ZONES ~, 4 & 5 COMB. RATE ADJUSTME~T ANALYSIS Fiscal Year Ended March 31, 1984 I Actual revenue, year ended Decembe~ 31, 1982 I Projected revenue, fiscal year end~d March 31, 1984 Projected operating expenses, I as adjusted, fiscal year ended M9rch 31, 1984 Projected revenue required to prodyce 95% operating ratio $4,818,536 4,948,767 4,793,749 5,046,052 Projected revenue required, adjusted for projected franchise fee 17,386 5,063,438 Add: Projected franchise fee Increase in projected revenue requ red, fiscal year ended March 31, 1984 114,671 Projected net income 252,303 Percentage increase in revenue required 2.3% Percentage increase in revenue req4ested Percentage increase in revenue com~uted 2.2% 2.3% Investment Base: Accounts Receivable Fixed Assets Parts Inventory 427,723 773,179 98,930 $1,299,832 Projected Return on Investment 19.4% -18- VALLEY DISPOSA~ SERVICE COMPARATIVE INCREAS~S IN EXPENSES I Proj. Fiscal VE 3/31/84 Actual VE 12/31/82 Actual VE 12/31/81 Expense Increase Expense Increase Expense Increase Operating Expenses Amount % Amount % Amount % Zone 2 - Lafayette Labor $ 30,623 7.1 62,376 16.8 4,569 1.2 Emp. Benefits (7,268) (8.0) 1 ,531 1.7 (1,109) (1. 2) Fuel (10,665) (21 . ]) (8,221) (14.3) A 11 Other 33,460 9.4 (21 ,64]) (5. ]) 30,858 8.9 Total $ 56,815 6.2 31,595 3.6 26,097 3.0 Zone 4 - Valley La bo r 61,662 7.0 12,201 1.4 94,361 12.3 Emp. Benefits 23,748 12.4 (15,479) (].5) (285) ( .1) Fu~l (3,584) (2.8) 17, 149 15.2 A 11 0 t he r 110,749 11.6 78,410 9.0 38,085 4.6 Total $196,159 9.1 71,548 3.4 149,310 7.7 Zone 5 - Diablo Labor 42, 100 7.0 75,245 14.4 55,732 11.9 Emp. Benefits 15,823 12.6 14,001 12.6 (14,202) (11.3) Fuel (2,369) (4.4) (4,929) (8.4) All Other 45,953 7.7 49,376 9.1 48,518 9.8 Total $103,876 7.6 136,253 11. 1 85,119 7.4 Zone s 4 & 5 La bo r 103,762 7.0 87,446 6.3 150,093 12. 1 Emp. Benefits 39,571 12.5 (1,478) ( . 5) (14,487) (4.4) Fuel (5,953) (3.2) 12,220 7.1 All Other 156,702 10. 1 127,786 9.0 86,603 6.5 Total $300,035 8.5 207,801 6.3 234,429 7.6 Zones 2, 4 & 5 Labor 134,385 7.0 149,822 8.5 154,662 9.6 Emp. Benefits 32,303 7.9 53 .0 (15,596) (3.]) Fuel (16,618) (7.1) 3,999 1.7 All Other 190, 162 10.0 106,139 5.9 117,461 7.0 Total $356,850 8.0 239,396 5.7 260,526 6.6 -19- -.-.---------...------ ....---.---.-----4---..-----.-..______________..______.___....._._____....___..___.... 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Valley Disposal Request 19~4 Effective Period: August 1 983-March Number of Months: 8 i Zone 2 Zone 4 Zone 5 Zones ~afayette Vall ey Diablo 2, 4, & 5 Drop Box: Rate Increase I 8.2% 8.2% 8.2% 8.2% Revenue Increase Q, 165 28,910 8,690 46,765 I Commercial: Rate Increase 5.2% 5.2% 3.9% Revenue Increase 14,977 6,029 21,006 Residential: Rate Increase 2.8% 2.8% 2.3% Revenue Increase 26,429 2Cl.471 46,900 Total Increase: Rate Increase 1. 3% 4.4% 3.6% 3.5% Revenue Increase ~,165 70,316 35, 190 114,671 Effect on Service Rates: Drop Box - I Uniform increase in iall rates by 8.2%; rates will be consistent in all tHree zones. i Zones 4 and 5 rates lincreased by average 6.7% to same levels in Zone 2; r~tes will be consistent in all three zones. Commercial - Residential: i i i Zone 2 ~afayette Zone 4 Valley Zone 5 Diablo One Can Weekly Current 'Proposed 7.95 I f.95 7.90 8.10 7.90 8.10 Each Add'l Can Weekly Current Proposed 4.10 4.10 3.55 3.65 3.55 3.65 VALLEY DISPOSAL S~RVICE REQUESTED REVENUE I~CREASE I I i 1983-SePtembe~ 1984 II. Annual Rate Increase Effective Period: October Number of Months: 12 $zone 2 Zone 4 Zone 5 Zones Vall ey Diablo 2, 4 & 5 L: fayette Drop Box: i .- Rate Increase i 8.2% 8.2% 8.2% 8.2% Revenue Increase 131,748 43,365 13,035 70, 148 Corrunercial: -~- Rate Increase 5.2% 5.2% 3.9% Revenue Increase +- 22,466 9,043 31,509 Residential: I Rate Increase -~- 0.5% 0.5% 0.4% Revenue Increase -~- 7,334 5,680 13,014 I Total Increase: Rate Increase 11.3% 3.0% 1.9% 2.3% Revenue Increase 1 3, 748 73,165 27,758 114,671 Effect on Service Rates: Drop Box - Uniform increase in ~ll rates by 8.2%; rates will be consistent in all three zones. Corrunercial - Zones 4 and 5 rates ~ncreased by average 6.7% to same levels in Zone 2; rates will be consistent in all three zones. Residential: One Can Weekly Current Proposed Each Add'l Can Weekly Current Proposed , i Zone 2 .!J fayette Zone 4 Va 11 ey Zone 5 Diablo f.95 7.95 i 7.90 7.95 7.90 7.95 ..10 4.10 3.55 3.55 3.55 3.55 VALLEY DISPDS~ SERVICE REQUESTED REVE UE INCREASE I I III. Six Month Rate Increase i I Effective Period: October 1983-March11984 Number of Months: 6 ! Zone 2 Zone 4 Zone 5 Zones L fayette Va 11 ey Diablo 2, 4, & 5 Drop Box: i Ra te Increase 8.2% 8.2% 8.2% 8.2% Revenue Increase 6,874 21,683 6,517 35,074 Commercial: Rate Increase 5.2% 5.2% 3.9% Revenue Increase 11,233 4,522 15,755 Residential: Rate Increase 5.1% 5.1% 4.2% Revenue Increase 35,976 27,866 63,842 Total Increase: Rate Increase 1.3% 5.7% 5.3% 4.6% Revenue Increase 6 874 68,892 38,905 114,671 Effect on Service Rates: Drop Box - Uniform increas in all rates by 8.2%; rates will be consistent in a 1 three zones. Commercial - Zones 4 and 5 r tes increased by average 6.7% to same levels in Zone ; rates will be consistent in all three zones. Residential: Zone 4 Zone 5 L Vall ey Di a b 10 One Can Weekly Current 7.95 7.90 7.90 Proposed 7.95 8.30 8.30 Each Add'l Can I~eekl y Current '4.10 3.55 3.55 Proposed 4.10 3.75 3.75 ------- ((sD Central Contra Costa Sanitary District BOARD OF DIR eTORS NO. V POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE September 7, 1983 SUBJECT TYPE OF ACTION CONSIDER REQUEST FROM ORINDA ASSOCIATION FO A CHANGE IN THE LEVEL OF TRASH PICKUP FOR ORINDA RESIDE TS Consider Request ISSUE: A request from the Orinda Associati trash pickup for Orinda residents h INI IATING DEPT./DIV. dministrative/Finance SUBMITTED BY Paul Morsen requesting an additional level of been received. BACKGROUND: At the rate setting hearings h request was submitted for an increa an Orinda resident. The Board resp wide interest was expressed, the in would be considered. To this end, the community through the Orinda As ld by the Board on May 5, 1983, a ed level of trash pickup service by nded by stating that if community- reased service level and its cost taff requested an expression from ociation. As their letter indicates, the Orin a Association poll shows a majority of those who responded would prefer an increased level of Service. Options were presented to the Orinda Associ tion by the Orinda-Moraga Disposal Service and the one selected by pol respondents required an additional charge of $1.50 monthly per custome. This increased level of service provides one grass pickup per week nd a clean-up service three times per year of up to two cubic yards 0 refuse. An attachment to this position paper is a copy of the sur ey as it appears in the Orinda Association's Newsletter. Mr. George Navone, of Orinda-Moraga Disposal Service, was contacted by staff with regard to this matter. r. Navone suggested that with only a 12% total response from Orinda ho seholds,his firm should conduct a survey of the community along with he next quarterly billing to ascertain if there is a wide-spread desire among Orinda customers for the increased service level and the rate increases that would be necessary for the additional pickup. I RECOMMENDATION: Consider the request of th, Orinda Association. I REVIEWED AND RECOMMENDE FOR BOARD ACTION ENG. PM ~Orinda Ii ASSOCiation September 1, 1983 Mr. Walter Funasaki Board of Directors Contra Costa Sanitary District 5019 Imhoff Martinez, California 94553 Re: Orinda Association survey Garbage Disposal Service Dear Mr. Funasaki: As we discussed, The Orinda Asso iation undertook a survey as a part of our quarterl Newsletter mailed to all residents of Orinda. The re ults of the survey con- firm the community's desire to h ve expanded garbage disposal service. . There were ap roximately 670 responses to the survey with 487 in favor f additional service and 183 preferring no change. i I The options for additional servi~e were provided by the Orinda-Moraga Disposal compalY. A copy of the survey card is enclosed for your review Of the two options noted on the card, the preferred choice was the tri- annual pick up plus one addition 1 bag (322 to 165). It should be noted that the additio al service would be picked up at the curb-side. I ! I We hereby request that such a ch.nge be considered by the Board. If we can provide! any addi.tional infor- mation or assist in further gath,ring of data, please advise. Sincerely, THE ORINDA ~b;nson Director DR/ b 1 encl i cc: Orinda/Moraga Disposal service, Inc., P. O. Box 659, Orinda, CA 94563 P.O. Box 97 · Orinda, CA 94563 · 254-0800 $5)000 REWARD According to State Forestry Fire In estigator, Captain Ellis Severietti, arson is the #1 cause 0 fire in the Orinda area. It is usually one or two people who ar responsible. One arsonist was arrested in 1979 and convicted f 175 wildfires that destroyed 4 homes in the Lamorinda area. He.s currently serving the remain- ing 3 years of his prison term. Last year several fires were startet by a person from ~his area who is now known to fire investigat rs. That person w111 be closely watched and apprehended if he retur s to last year's activities. I This year there is a $5,000 reward or information leading to the arrest and conviction of an arsonis. Tips will be kept anonymous. Remember the Neighborhood Crime Wat h Program? The same awareness of unusual occurrances may lead to he prevention of a fire or to the identification/conviction of th arsonist. AND ALL THAT GARBAGE. . . BUMMED BARTers CAN BUS The Orinda-Moraga Disposal Service, Inc. has offered Orindans an opportunity for increased services, and Central Contra Costa Sanitary District has asked OA to poll the citizens to determine their wishes on this issue. #1 - FOR AN ADDITIONAL $1.50/monthly: The Red Line (Seville Bus) express bus now runs from stops along Moraga Way (last stop Old Black's market) to San Francisco-Fremont-by- Market Street, Monday thru Friday during commute hours. Current levels of service warrant only two runs in the morning beginning at 6:45 a.m. and 7:30 a.m., and one even- ing run leaving S.F. at 5:10 p.m. One-way fare for Orindans is $2. Grass service plus tri-annual clean-up. This includes one grass/brush can/bag per week to be placed curbside, plus the tri-annual clean-up in spring, sum- mer and fall which includes the removal of any rubbish, junk, cuttings, etc., up to two cubic yards maximum to be placed curbside. Two cubic yards is equal to approximately fourteen 32-gal. garbage cans. For more detailed information/ schedules, phone: 827-2093. #2 - FOR AN ADDITIONAL $l/monthly: Tri-annual Clean-up (as described above) in the spring, summer and fall only. Or,1 the level of service may remain the same I as it has been in the past. It is important that we have your vote on the card enclosed. the envelope provided as soon as possible, If you have not already become an OA memb r for 1983--check your address plate to make sure--you may also enclose our $lO/year dues with your vote. Our garbage needs your vote; send it to 0 r office today. (The vote, that is! District BOARD OF DIRECTORS POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer NO. VI. Engineering 1 1 8 DATE September 7, 1983 SUBJECT AUTHORIZE $533,000 FROM THE SEWER CONSTRUCTION FUND FOR MANAGEMENT, ENGINEERING, AND CONSTRUCTION OF GROUP II AND III STORM REPAIR PROJECTS TYPE OF ACTION AUTHORIZE FUNDS SUBMITTED BY Curtis Swanson IN IT IAT...lNG QEPT./QIV. tngl neen ng ISSUE: Additional funds are needed for continued management and engineering of 29 collection system storm damage repair projects and construction of 4 repair projects that have been designated as emergency projects. BACKGROUND: On June 9, 1983, the Board was advised that the collection system had been damaged at 44 locations as a result of winter storms. Repair projects for this damage were classified into 3 groups. Group I consisted of 19 small projects. There were 10 complex or large projects in Group II. Group III included 15 projects with legal, jurisdictional or other problems. Since the June report, 4 additional projects have been identified. GROUP I PROJECTS Group I projects were those projects which required minimal engineering. Seven of the Group I projects were selected for action this year by the Engineering & Construction Department. Construction is underway with project completion anticipated by September 23. A summary of Board authorizations for the Group I projects is included in Attachment 2. Additional funding to repair deferred Group I projects will be requested next year. No additional authorization for,Group I projects is requested at this time. GROUP II PROJECTS Group II projects were those projects which required extensive engineering. The Group II projects were prioritized during the preliminary design phase. Four projects were given an emergency priority because the onset of wet weather would likely cause sewerline failures. The status of the emergency Group II projects is as follows: o The design is complete for the Moraga 1 and lA slides and construction should be underway on or before the September 15 Board meeting. o Predesign is complete on the Oak Arbor Slide and design is underway. Construction should begin before the end of September. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATelBT./DIV. CWS V0 JL t/tg RAB -1- GROUP II PROJECTS (continued) o Predesign is complete on the Tarry Lane slide and design is underway. Construction should begin by September 30. Predesign is complete on the Evergreen Drive slide. Negotia- tions have broken down with the homeowner and the District may be forced to install a temporary flexible line at this location. o A summary of prior Board authorizations for Group II slides is included in Attachment 2. A summary of the requested funds is included in Attachment 1. Since this work is being done by "time and materials" contracts, the cost estimates are not based on contractor bids (as is usually the case) but are instead based on engineers estimates. Additional funds will be required next year to complete design and construction of the 8 deferred Group II projects. The Board has previously authorized $107,450 in 1983 for Group II projects. An additional $429~100 in Sewer Construction Funds is required to finish design and construction of 3 emergency group II sites. In addition, $5,000 is requested for temporary repairs to one emergency site, and $45,800 is requested for additional predesign work for the 8 deferred Group II sites. GROUP III PROJECTS Group III includes 16 storm damage projects with legal, institutional, or jurisdictional problems that must be resolved prior to repairs being made. Other agencies have responsibility for 7 projects. On one of these projects the County is reconstructing a large section of road at a cost of $230,000 that was damaged by a landslide. The District must contribute approximately $14,000 for this project as the incremental cost to replace a damaged sewer. Claims or lawsuits are involved in 2 projects which are being handled by Legal Counsel. Technical support is being provided by the Engineering and Construction Department staff. A variety of legal and other issues are being addressed on the remaining 7 Group III Projects. Because of the uncertainties about the Group III Projects, the staff effort cannot be defined accurately. A summary of the funds required for Group III Projects is listed in Attachment 1. The Board has previously authorized $2,000 in 1983 for Group III projects. An additional $39,100 is requested to allow staff to continue monitoring and resolving problems on these projects over the next 4 months. ANTICIPATED FUTURE COSTS Present Board authorizations should be sufficient to finish work on Group I sites. If additional damage occurs during the coming winter, it will have to be addressed next year. REVIEWED AND RECOMMENDED FOil BOARD ACTION INITIATING OEPT./OIV. GEN. MGR./CHIEF ENG. CWS JAL RAB -2- Present Board authorizations should be sufficient to complete repair of 3 Group II sites and complete predesign of the remaining 8 sites. Design and construction of the remaining Group II sites will be deferred until next year. Because of legal and jurisdictional uncertainties, it is difficult to assess future costs of the Group III projects. The total Board authorization for storm damage repair projects in 1983 including the requested authorization is $942,475. RECOMMENDATION: Authorize an additional $533,000 from the Sewer Construction Fund for continued management and engineering on Group II and III storm damage projects and construction of emergency repairs at 4 Group II storm damage sites. Attachments REVIEWED AND RECOMMENDED FO/( BOARD ACTION INITIATING OEPT./OIV. GEN. MGR./CHIEF ENG. CWS JL RAB -3- ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT ADDITIONAL AUTHORIZATION REQUEST FOR GROUP II & III STORM DAMAGE PROJECTS GROUP II PROJECTS Preliminary Design - 11 Projects Project Management Legal Review Engineering Surveying Mapping TV Inspection - 30" Sewer Geotechnical Consultant -(Muth Drive) Emergency Projects - Moraga Trunk Sewer (DSP 3642) Design Construction Management Construction Tarry Lane, Orinda (DSP 3888) Design Construction Management Construction Oak Arbor Road, Orinda (DSP 3882) Design Construction Management Construction Allowance for possible temporary sewer at Evergreen Drive Total Group II Authorization Request $2,500 9,500 18,500 7 , 1 00 3,900 1,300 3,000 $45,800 26,500 245,000 $271,500 3,800 6,000 25,000 $34,800 7,000 19,800 96,000 $122,800 5,000 $479,9100 (1) (2) (3) (3) (3) -4- GROUP III PROJECTS Project Management - 16 Projects $4,500 Geotechnical Assessment - Taggart Lawsuit (DSP3881) 5,300 Geotechnical Assessment and Preliminary Design - 18,600 Blume Lawsuit (DSP 3881) Legal Review - 16 projects 10,700 District share of County project at Barbados Dri ve, Danv i 11 e 14,000 Total Group III Authorization Request Total Group II & III Authorization Request $53,100 $533,000 Notes: (1) Includes completion of expanded preliminary design scope for the original 10 Group II Projects and the 2 new Group II Projects identified since June. (2) Design funds previously authorized. (3) Estimated construction and construction management costs. Construction to be accomplished on a time and materials basis. (4) Because of the uncertain nature of the Group III Projects, the District staff effort cannot be defined at this time. These authorizations cover the estimated staff effort over the next 4 months. CWS/sf 9/8/83 (4) (4 ) -5- ATTACHMENT 2 CENTRAL CONTRA COSTA SANITARY DISTRICT SUMMARY OF PRIOR 1983 AUTHORIZATIOnS FOR STORM DAMAGE PROJECTS EMERGENCY REPAIR PROJECTS Moraga Trunk Sewer Landslide-February, 1983 $70,000 18,000 Moraga Trunk Sewer Landslide-March, 1983 Board Authorization Date 2/17/83 4/7/83 Allowance for Other Possible Repairs 12,000 (1) 4/7/83 $100,000 Total Emergency Repairs LONG TERM REPAIR PROJECTS Design of Moraga trunk sewer repair Design of South Trail creek crossing repair Design of Carrol Place creek crossing repair Survey of 1983 storm damage sites (44 sites) Preliminary design and project management of 1983 storm damage projects Group 1 Projects Group 2 Projects Group 3 Projects Project Planning & Legal Review $44,000 7,500 7,000 6,500 19,900 63,450 2,000 16,300 $101,650 Construction of 7 Group 1 storm damage repair projects $142,825 $309,475 Total - Long-Term Repairs Total - 1983 Prior Storm Damage Authorizations $409,475 Requested additional authorization (see Attachment 1) $533,000 Total 1983 Storm Damage Authorizations Requested to Date $942,475 Notes: (1) Not needed for emergency repairs. Used for preliminary design and project management efforts. 4/7/83 4/7/83 4/7/83 4/7/83 6/16/83 9/1/83 9/15/83 -6- ". .~-"~",-,,,,-,-,-,,--"'---'--'-'"---'~'--"-~-~---'-',----..-----..-----.--.,---.-,--.-..--.--..--.----------....--.------- <c(sD Central Costa BOARD OF DIRECTORS District NO. VII. Collection Syst m 1 9/15/83 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE September 8, 1983 SUBJECT TYPE OF ACTION REQUEST AUTHORIZATION OF $2,009.53 FROM SEWER CONSTRUCTIONFU D FOR THE PURCHASE OF THE TELEPHONE SYSTEM AT SPRINGBROOK ROAD, Authorize Funds WALN UT CREE K SUBMITTED BY Robert H. Hinkson INITIATING DEPT./DIV. Collection System Operations ISSUE: The telephone system lease with Liberty Equipment Leasing Company at Springbrook Road expires in September. This request for $2,009.53 is to purchase the equipment to continue its use at Springbrook Road. BACKGROUND: Pacific Telephone Company indicates it would cost $13,228.00 to replace our system. The P.T.T. proposal does not offer significant improvements over what we have. Our lease payment is $759.00 per month. For $2,009.53, we will purchase: 1 - ITS-TTX20 - Touch Tone Exchange 27 - ITS-PTTI4 - 14 Button Patricians 14 - ITS-COL - Central Office Lines 3 - ITS-PTT21 - 21 Button Patricians 1 - ITS-CHAU - Call Hold Annunciator 1 - ITS-SBLF - Special Busy Lamp Field 2 - ITS-BLF - Busy Lamp Field 2 - ITS-2Z - Two Zone Paging 2 - ITS-DIC - Dial Intercom 1 - ITS-A10 - Control Unit 1 - ITS-H8 - Horn RECOMMENDATION: Authorize $2,009.53 from Sewer Construction for the purchase of the telephone system at Springbrook Road, Walnut Creek. REVIEWED AND RECOMMENDEO FOR BOARD ACTION RHH flli~IN& DElC~~ District BOARD OF DIRECTORS NO. VIII. Sol id '.taste POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chi,ef Engineer DATE September 6. 1983 R~ETVE STAFF ANAL YS I S OF THE APPLI CAT I ON FOR GARBAGE RATE INCREASE BY VALLEY DISPOSAL SERVICE. INC. AND SET PUBLIC HEARING FOR OCTOBER 6. 1983. TYPE OF ACTION GARBAGE RATE APPLICATION REVIEW SUBMITTED BY \>/a1ter Funasaki INITIATING DEPT./DIV. Administrative/Finance ISSUE: An application for garbage rate increases has been submitted by Valley Disposal Service. Inc.. Diablo Disposal Service. Inc.. and Lafayette Garbage Disposal Service. Inc.. garbage franchise holders for Zones 4. 5 and 2. respec- tively. BACKGROUND: A 2.53% rate increase in residential rates is being applied for by Valley Disposal Service and its Diablo Disposal division. The Lafayette Disposal division is not applying for an increase in its residential rates. The last residential rate increase authorized by the Board of Directors was 5% made effective April 1. 1982. An average commercial rate increase of 6.67% is being applied for by Valley Disposal Service and its Diablo Disposal division. This would increase commercial rates in Zones 4 and 5 to the same level that currently exists in Zone 2. The last commercial rate increase in Zones 4 and 5 authorized by the Board of Directors was 10.36% made effective July 1. 1982. Zone 2 commercial rates have remained unchanged since April 1. 1981. An 8.24% increase in debris box rates is being applied for in all three Zones. District staff has reviewed the rate increase application and prepared a staff analysis. A copy of the staff analysis and the refuse collectors' rate increase application are transmitted herewith. The Price Waterhouse suggestions which were authorized by the Board for implementation were effected and are described in the staff analysis. RECOMMENDATION: Consider the results of the District staff1s review of the rate increase application of Valley Disposal Service. Inc. and set a Pub1 ic Hearing for October 6. 1983. REVIEWED AND RECOMMENDED FOR BOARD ACTION ENG. INITI?NG DEPT./DIV. Cd..-~' ANALYSIS OF VALLEY DISPOSAL SERVICE, INC. GARBAGE RATE INCREASE APPLICATION A garbage rate increase application has been submitted by Valley Disposal Service. Inc. and its divisions, Diablo Disposal Service, Inc. and Lafayette Garbage Disposal Service, Inc., which are franchise holders for Zones 4, 5 and 2, respectively. The rate increases are requested to be effective as of August 1, 1983. District staff has performed an analysis of the franchise holders' rate increase application. The overall objective of the analysis was to evaluate the reasonableness of the expense projections contained in the application and to compute the percentage increase in revenue required to produce a 95% operating ratio, after giving effect to rate-setting adj ustments. Rate Increases Requested The three franchise holders (Valley Disposal) have requested a total rate increase of2.2%based on a $111,525 increase in revenues necessary to produce a 95% operating ratio. The rate increase is proposed to be allocated as follows: 1. To increase debris box rates in all three zones from $4.25 to $4.60 per cubic yard, representing an 8.24% increase. 2. To increase commercial rates for Zones 4 and 5 (Valley Disposal and Diablo Disposal) to the same rates charged in Zone 2 (Lafayette Disposal) since April 1, 1981. These rates would increase by an average 6.67%. 3. To increase residential rates in Zones 4 and 5 (Valley Disposal and Diablo Disposal) by 2.53%, with no increase in residential rates in Zone 2 (Lafayette Garbage Disposal). Staff Analysis Methodology The staff analysis was completed by performing the following tasks: . Review the rate increase application for completeness and arithmetical accuracy. Review the statement of operation for the calendar year ended December 31, 1982 incorporated in the rate increase application, and verify its accuracy by comparison to the financial statements audited by Valley Disposal's certified public accountant. Review the reasonableness of the projected statement of ?perations for the fiscal year ended March 31,1984 submitted ln support of the rate increase application. . . -1- ), · Review the reasonableness of the allocation of the total rate increase requested to debris box, commercial and residential rates by zones. Based on the results of the analysis, the projected expenses for the fiscal year ended March 31, 1984 by Valley Disposal are consi- dered to be reasonably stated. Summary of Schedules Included 1. Statement of operations for the year ended December 31, 1982, and projected expenses for the fiscal year ended March 31, 1984. Statements are presented for each of the Valley Disposal franchise holders, as well as for Diablo Disposal and Valley Disposal combined and for all three franchise holders combined. In these statements, adjustments are made to certain expenses to eliminate expenses not allowed for rate setting purposes and to restate expenses which are treated differently for financial statement presentation than for rate-setting purposes. 2. Rate adjustment analysis, in which the percentage increase in revenue required to produce a 95% operating ratio,is calculated. The return on investment produced by the calculated revenue increase is also presented. 3. Schedule of comparative increases in expenses. This schedule compares increases in major expense categories to prior years. 4. Comparative ratio analysis schedule. This schedule presents operating ratios, return on investment and rate increases for each of the Valley Disposal franchise holders. 5. Schedule of residential and commercial service rates and service levels for selected garbage collection companies serving neighboring communities. Explanation of Significant Changes The combined expenses for the Valley Disposal franchise holders are projected to increase by 8.0% during the fiscal year ended March 31, 1984. Eleven of the twenty-two expense accounts shown in the statement of operations are not projected to increase. ~xpenses which are projected to increase greater than 5% are explained on the page following the statement of operations. Related Party Transactions and Other Information In 1982, Valley Disposal leased thirteen trucks from F & F Leasing, six of which were leased by the District's franchise holders. For rate- setting, the leased trucks are capitalized and the projected expenses -2- for the fiscal year ended March 31, 1984 excludes truck lease rent expense and includes depreciation and interest expense. Valley Disposal and other garbage collection companies operating in Central Contra Costa County own the Acme Landfill Corporation (Acme). During 1982t Valley Disposal paid $6l7t7l9 in dumping charges to Acmet $409t869 of which is applicable to operations in the District's jurisdiction. Valley Disposal received $27tOOO in dividends from Acme during 1982 and $108tOOO in 1981. These dividends were recorded as nonoperating income and are excluded from the rate-setting analysis. Acme increased its dumping charges from $l.OO/cubic yard to $1.25/cubic yard on April It 1983. A review of charges of other nearby dump sites disclosed that Acme's charges are still among the lowest. No bonus or pension contributions for A. Fiorentinoare included in projected expenses. Implementation of Consultant's Suggestions On April 7t 1983t the Board of Directors determined that the following suggestions by Price Waterhouse were to be implemented in the analysis of the present rate increase application: 1. Operational information should be included as part of the rate application. Valley_Disposal provided the following operational informa- tion for use 1n the-rate analysis-: Number of customers by zone by class Number of drivers and helpers by zone Number of revenue producing trucks by zone Number of tips at Acme Landfill 2. Franchise fees should be excluded from allowable operating expenses in calculating the revenue requirement under the Operating Ratio methodt and should then be added to the revenue requirement so determined to produce the total revenue requirement. Franchise fees were excluded from a)lowable operating expenses and the revenue requirement was determined as described above. 3. Return on Equity as a method of calculating allowable profit should be provided to the Board in addition to the customary Operating Ratio calculation. The computation of Valley Disposal's allowable profit under the Return on Equity method using a 20% rate of return is -3- - )- presented below: Stockholders' Equity as of December 31, 1982: Capital Stock Retained Earnings Total $ 9,800 1,135,859 $1,145,659 Apportionment to District's Jurisdication Based on Revenues for Year Ended 12/31/82 Rate of Return Net Income After Income Taxes Add Estimated Income Taxes Allowable Profit Operating Expenses As Adjusted Add: Franchise Fees $14,241 Interest 51,656 Allowable Profit Revenue Required Projected Revenue Increase in Projected Revenue Requi t'ed Percentage Increase In Revenue Required 59.2% 678,230 20% 135,646 111,883 $ 247,529 4,793,749 65,897 4,859,646 247,529 5, 1 07 , 175 4,948,767 '$ 158,408 3.2% The use of the Return on Equity method produces a percentage increase in revenue required of 3.2%, which is slightly higher than the 2.3% increase determined under the Operating Ratio method. A 20% (after tax) rate of return was used in considera- tion of the consultant'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 %: Browni ng-Ferri s Waste Management 1982 "3T:2 16.1 1981 "1'9:4 22.5 4. Officers' compensation should be reviewed for reasonableness by referring to industry compensation guides. -4-< The compensation of Valley Disposal's officers are summarized below: Offi cer Angelo Fiorentino (Former President) Francise Fiorentino (President) Anne Grodin (Treasurer) Marshall Grodin (Gen'l Manager) Controller Provision for Future Position and Bonus (1) Excluded from rate-setting Projected Fiscal Year 3/31/84 sa 1 a ry $ 23,500 50,250 40,000 40,000 25,500 35,750 $215,000 Pension $ 91,004 (1) 11 ,430 1,296 $103,730 A comparison of the officers' compensation shown above to average compensation levels reported in the American Management Association's "Compensation Policies & Practices for Smaller Organizations" published in January 1983 indicates general conformity with the published average compensation levels. Conclusion Valley Disposal has requested the allocation of the rate increase to specific categories of service: increase debris box rates by 8.2% in all zones; increase commercial rates in Zones 4 and 5 to the same level in Zone 2; and to increase residential rates in Zones 4 and 5 to the extent ') of the remaining revenue increase. The rate increases proposed by Valley Disposal are based on realizing the calculated annual revenue increase during the eight month period, August 1, 1983 through March 31, 1984. The following schedule presents the allocation of the calculated annual revenue increase of $114,671 with apportionment to drop box and commercial rates for an eight-month period, with the balance being ascribed to residential rates. Alternatively, a presentation of the effect of determining the rate increases based on apportioning the calculated annual revenue increase for a twelve-month period is also presented. -5- VALLEY DISPOSAL SERVICE REQUESTED REVENUE INCREASE Fiscal Year Ended March 31, 1984 Zone 2 Zone 4 Zone 5 Zones August - March Per i ad Lafayette Valley Diablo 2, 4, & 5 Drop Box: Annual rate 8.2% 8.2% 8.2% 8.2% 8 mos. (Aug-Ma r) 9, 165 28,910 8,690 46,765 Commercial: Annual rate 5.2% 5.2% 3.9% 8 mos. (Aug-Ma r) 14,977 6,029 21 ,006 Residential: Annual rate 2.8% 2.8% 2.3% 8 mos. (Aug-Mar) 26,429 20,471 46,900 Total Increase: Annual rate 1.3% 4.4% 3.6% 3.5% 8 mos. (Aug-Ma r) 9, 165 70,316 35,190 114,671 12 Month Period: Drop Box: Annual rate 8.2% 8.2% 8.2% 8.2% 12 mos. 13,748 43,365 13,035 70,148 Commerc i a 1 : Annual rate 5.2% 5.2% 3.9% 12 mos. 22,466 9,043 31 ,509 Residential: Annual rate 0.5% 0.5% 0.4% 12 mos. 7,334 5,680 13,014 Total Increase: Annual rate 1.3% 3.0% 1.9% 2.3% 12 mos. 13,748 73, 165 27,758 114,671 -6- ). -<r co '" ;;; .z: u L .. ~ .., Cl .., e: '" L .. Cl >- .. U '" "- .., ~ U Cl 0 L -<r "- CO '" "" .z: u L .. ~ 0:;:;- .., Cl I- .., l- e: '" '" >- L < '" "- Z .. < 0 ., ..J >- !;t N 0:: .. '" U "- '" '" 0 Z "- 0 "- ~ 0 .., e: ..J !;; .. < '" N '" ~ CO 0 '" '" "- !;t '" N <> I- CO '" "" '" >- '" L ..J ., ;;; ..J J:> < fil > L U ., ] 0 e .., Cl ., U .., Cl e: 0 '" L .. '" ., :J >- ... U < -; '" '" Cl"" L U ~ Cl OIl... .. c: Cl :J gj "'~~ < :J .., < ~~ eU ... OIl :J L ......0 .., < ~ o ... L '" ., U "-: ... ~I o ., > ""Cl 0:: ~~ ~~ ";I~I 4"00..::1" 0 I.I'\N__ 0 __ONf""o. r-:r--:a:i ,",,00 -N_ 0'" O-<r _-0 -<r . 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"- o '" c: ... .. 8- o III c: o ... .. c: .. Q. " '" EXPLANATION OF ADJUSTMENTS (1) To correct error in Depreciation and Amortization Expense'in original appl ication (2) To exclude franchise fees from operating expenses for revenue requirement calculation purposes; the franchise fee is added to the revenue requirement. (3) To exclude pension plan contribution for president for rate setting purposes. (4) To exclude interest expense for rate setting purposes. (5) To adjust audited figures for leased equipment which is treated as rent expense for financial statement presentation but capitalized for rate setting purposes. (6) To exclude amortization of franchise cost for rate setting purposes. (7) To adjust audited figures for leased equipment which is capitalized for financial statement presentation but treated as rent expense for rate setting purposes. (8) To adjust franchise fees to include cost of Price Waterhouse rate setting study amortized over three years. -12- EXPLANATION OF SIGNIFICANT CHANGES IN PROJECTED EXPENSES (ZONES 4, 5, AND 2) Salaries and Wages - the projected increase of 7.0% is primarily the result of garbagemen's salary increases in excess of 5% negotiated in a new Teamsters Union contract. Payroll Taxes - the projected increase of 7.1% reflects the effect of increases in salaries and wages. Employee Benefits - the projected increase of 7.9% is primarily the result of increases in salaries and wages. Worker's Compensation Insurance - the 23.2% projected increase is primarily the result of increases in premium rates and higher salaries and wages. Dumping Charges - the 13.5% projected increase is primarily the result of a 25% increase in dumping fees effective April 1, 1983. Telephone and Utilities - the 10.0% projected increase reflects anticipated utility rate increases. Box Repairs - the projected increase of 57.2% includes scheduled refurbishing of drop boxes by sandblasting, removal of dents, and repainting. Truck Repairs - the projected 11.1% increase is the result of increases in cost of parts and scheduled repainting of trucks. Depreciation and Amortization - the projected increase of 6.8% includes full year depreciation on trucks purchased in 1982 and the addition of a new truck in 1983. -13- ~ iY DISPOSAL ( ZONE 2 - LAFAYET RATE ADJUSTMENT ANALYSIS Fiscal Year Ended March 31, 1984 Actual revenue, year ended December 31, 1982 Projected revenue, fiscal year ended March 31, 1984 $1,006,978 1,063,283 976,771 Projected operating expenses, as adjusted, fiscal year ended March 31, 1984 Projected revenue required to produce 95% operating ratio 1 ,028, 180 Projected revenue required, adjusted for projected franchise fee 3,134 $1 , 031 ,31 4 Add: Projected franchise fee Increase in projected revenue required, fiscal year ended March 31, 1984 (31,969) Projected net income 51,409 (3.0%) Percentage increase in revenue required Percentage increase in revenue requested Percentage increase in revenue computed 0.9% (3.0%) Investment Base: Accounts Receivable Fixed Assets $ 88,134 116,014 $ 204 , 1 48 Projected Return on Investment 25.2% -14- _LEY DISPOSAL ( ZONE 4 - VALLE\ RATE ADJUSTMENT ANALYSIS Fiscal Year Ended March 31, 1984 Actual revenue, year ended December 31, 1982 Projected operating expenses, as adjusted, fiscal year ended March 31, 1984 $2,380,704 2,422,829 2,343,897 Projected revenue, fiscal year ended March 31, 1984 Projected revenue required to produce 95% operating ratio 2,467,260 Add: Projected franchise fee Projected revenue required, adjusted for projected franchise fee 8,261 2,475,521 Increase in projected revenue required, fiscal year ended March 31, 1984 52,692 Projected net income 123,363 Percentage increase in revenue required Percentage increase in revenue requested Percentage increase in. revenue computed 2.2% 2.9% 2.2% Investment Base: Accounts Receivable Fixed Assets Parts Inventory 214,685 514,325 98,930 $ 827,940 Projected Return on Investment 14.9% -15- \LLEY DISPOSAL (ZONE 5 - DIABLO RATE ADJUSTMENT ANALYSIS Fiscal Year Ended March 31, 1984 Projected revenue, fiscal year ended March 31, 1984 $1,430,854 1,462,655 1 ,473,081 Actual revenue, year ended December 31, 1982 Projected operating expenses, as adjusted, fiscal year ended March 31, 1984 Projected revenue required to produce 95% operating ratio 1 ,550,612 Add: Projected franchise fee Projected reVenue required, adjusted for projected franchise fee 5,991 1,556,603 Increase in projected revenue required, fiscal year ended March 31, 1984 93,948 Projected net income 77 , 531 Percentage increase in revenue required 6.4% Percentage increase in revenue requested Percentage increase in revenue computed 2.4% 6.4% Investment Base: Accounts Receivable Fixed Assets 124,904 142,840 $ 267,744 Projected Return on Investment 29.0% -16- VALLEY 5POSAL (ZONES 4 & 5 - VALLEY & .BLO) RATE ADJUSTMENT ANALYSIS Fiscal Year Ended March 31, 1984 Actual revenue, year ended December 31, 1982 Projected revenue, fiscal year ended March 31, 1984 Projected operating expenses, as adjusted, fiscal year ended March 31, 1984 Projected revenue required to produce 95% operating ratio Add: Projected franchise fee Projected revenue required, adjusted for projected franchise fee Increase in projected revenue required, fiscal year ended March 31, 1984 Projected net income Percentage increase in revenue required Percentage increase in revenue requested Percentage increase in revenue computed Investment Base: Accounts Receivable Fixed Assets Parts Inventory Projected Return on Investment -17- $3,811,558 3,885,484 3,816,978 4,017,8]2 14,252 4,032,124 146,640 200,894 3.8% 2.7% 3.8% 339,589 657,165 98,930 $1,095,684 18.3% '1' VALL DISPOSAL (ZONES 2, 4 & 5 COMB. RATE ADJUSTMENT ANALYSIS Fiscal Year Ended March 31, 1984 Projected operating expenses, as adjusted, fiscal year ended March 31, 1984 $4,818,536 4,948,767 4,793,749 Actual revenue, year ended December 31, 1982 Projected revenue, fiscal year ended March 31, 1984 Projected revenue required to produce 95% operating ratio 5,046,052 Projected revenue required, adjusted for projected franchise fee 17,386 5,063,438 Add: Projected franchise fee Increase in projected revenue required, fiscal year ended March 31, 1984 114,671 Projected net income 252,303 Percentage increase in revenue required Percentage increase in revenue requested Percentage increase in revenue computed 2.3% 2.2% 2.3% Investment Base: Accounts Receivable Fixed Assets Parts Inventory 427,723 773, 1 79 98,930 $1,299,832 Projected Return on Investment 19.4% -18- VALLEY DISPOSAL SERVICE COMPARATIVE INCREASES IN EXPENSES Proj. Fiscal YE 3/31/84 Actual YE 12/31/82 Actual YE 12/31/81 Expense Increase Expense Increase Expense Increase Operating Expenses Amount % Amount % Amount % Zone 2 - Lafayette Labor $ 30,623 7.1 62,376 16.8 4,569 1.2 Emp. Benefits (7,268) (8.0) 1 ,531 1.7 (1,109) (1. 2) Fuel (10,665) (21.7) (8,221) (14.3) A 11 Other 33,460 9.4 (21,647) (5.7) 30,858 8.9 Total $ 56,815 6.2 31,595 3.6 26,097 3.0 Zone 4 - Valley La bo r 61,662 7.0 12,201 1.4 94,361 12.3 Emp. Benefits 23,748 12.4 (15,479) (].5) (285) (.1) Fu~l (3,584) (2.8) 17, 149 15.2 A 11 0 t he r 110,749 11.6 78,410 9.0 38,085 4.6 Total $196,159 9.1 71,548 3.4 149,310 7.7 Zone 5 - Diablo Labor 42, 100 7.0 75,245 14.4 55,732 11.9 Emp. Benefits 15,823 12.6 14,001 12.6 (14,202) (11.3) Fuel (2,369) (4.4) ( 4,929) (8.4) AllOt he r 45,953 7.7 49,376 9.1 48,518 9.8 Total $103,876 7.6 136,253 11. 1 85,119 7.4 Zone s 4 & 5 La bo r 103,762 7.0 87,446 6.3 150,093 12. 1 Emp. Benefits 39,571 12.5 (1,478) (.5) (14,487) (4.4) Fuel (5,953) (3.2) 12,220 7.1 All Other 156,702 10. 1 127,786 9.0 86,603 6.5 Total $300,035 8.5 207,801 6.3 234,429 7.6 Zones 2, 4 & 5 Labor 134,385 7.0 149,822 8.5 154,662 9.6 Emp. Benefits 32,303 7.9 53 .0 (15,596) (3.7) Fuel (16,618) (7.1) 3,999 1.7 All Other 190, 162 10.0 106,139 5.9 117,461 7.0 Total $356,850 8.0 239,396 5.7 260,526 6.6 -19- VALLEY DISPOSAL SERVICE COMPARATive RATIO ANALYSIS 1982 and 1983 Zone 4 Zone 5 Zone 2 (Valley) (Diablo) (Lafayette) 1982 Operating Ratio 90.2% 95.7% 91.4% 1982 Return on Investment 28. 1 % 23.0% 42.6% 1983 Percentage Increase in Projected Operating Expenses 9.1% 7.6% 6.2% 1983 Rate Increase Requested 2.9% 2.4% 0.9% 1983 Rate Increase Computed 2.2% 6.4% 3.0)% 1983 Projected Return on Investment 14.9% 29.0% 25.2% - 20- :il Q....J ::l , c: " " c: " 0 c:_ z "u u " " c: c: ao~ i~ ~ " oS:. ~ c: "'0 " "'0 ::l U c: '" " u 1: " VI VI .... !:: z => z: z: a u '" z c<: a co :r '" .... z c<: a u. 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Q to Cl to L. a ::E: I to ." c: L. e to ." c: L. o -22- o o 00 .., o o o .., o o '" .... o o '" o '" ..... :I: o '" '" '" Q) ..c to '" > <( ... a z o 0 '" '" .., '" ..:. '" o ..... '" '" <" 0 '" '" '" "" '" '" '" 00 ..... '" '" 00 '" o '" o <Xl ..... '" .., '" o 0 "" '" <Xl <Xl '" '" '" '" a, '" to to .. .. a a a. a. .. .. Q >- >- Q) .. Q to ~~ Q >. V') ... U U U U ... c: to .. to .. 0. Q) to ..... to '" c: to V') .>< .>< .. Q) Q) .. L. L. U U ... ... " " c: c: to to :>: ;:K o '" o o ~ '" o '" N .. ~ to L. to U L. .. ~ a u Q) > to .I:: ... a c: a ." ~ '" '" '" U ." 8 ~ ." Q) '" ." c: to :I: .. B <( .. a ...J .I:: Cl " 1: a .0 .. :I: .. ... a z VALLEY DISPOSAL SERVICE REQUESTED REVENUE INCREASE I. Valley Disposal Request Effective Period: August 1983-March 1984 Number of Months: 8 Zone 2 Zone 4 Zone 5 Zones Lafayette Vall ey Diablo 2, 4, & 5 Drop Box: Rate Increase 8.2% 8.2% 8.2% 8.2% Revenue Increase 9, 165 28,910 8,690 46,765 Commercial: Rate Increase 5.2% 5.2% 3.9% Revenue Increase 14,977 6,029 21,006 Residential: Rate Increase 2.8% 2.8% 2.3% Revenue Increase 26,429 29.471 46,900 Total Increase: Rate Increase 1.3% 4.4% 3.6% 3.5% Revenue Increase 9,165 70,316 35, 190 114,671 Effect on Service Rates: Drop Box - Uniform increase in all rates by 8.2%; rates will be conststent1n all three zones. COITDllerci a 1 - Zones 4 and 5 rates increased by average 6.7% to same levels in Zone 2; rates will be consistent in all three zones. Residential: Zone 2 Lafayette Zone 4 Va 11 ey Zone 5 Diablo One Can Weekly Current 'Proposed Each Add1l Can Weekly 7.95 7.95 7.90 8.10 7.90 8.10 Current Proposed 4.10 4.10 3.55 3.65 3.55 3.65 VALLEY DISPOSAL SERVICE REQUESTED REVENUE INCREASE II. Annual Rate Increase Effective Period: October 1983-September 1984 Number of Months: 12 Zone 2 La fayette Drop Box: Rate Increase Revenue Increase 8.2% 13,748 Conunercial: Rate Increase Revenue Increase Residential: Rate Increase Revenue Increase Total Increase: Rate Increase Revenue Increase 1.3% 13 , 748 Effect on Service Rates: Zone 4 Zone 5 Zones Vall ey Diablo 2, 4 & 5 8.2% 8.2% 8.2% 43,365 13,035 70, 148 5.2% 5.2% 3.9% 22,466 9,043 31,509 0.5% 0.5% 0.4% 7,334 5,680 13,014 3.0% 1.9% 2.3% 73,165 27,758 114,671 Drop Box - Uniform increase in all rates by 8.2%; rates will be consistent in all three zones. Conunercial - Zones 4 and 5 rates increased by average 6.7% to same levels in Zone 2; rates will be consistent in all three zones. Residential: Zone 2 Lafayette One Can Weekly Current Proposed Each Add'l Can Weekly Current Proposed 7.95 7.95 4.10 4.10 Zone 4 Valley Zone 5 Diablo 7.90 7.95 7.90 7.95 3.55 3.55 3.55 3.55 VALLEY DISPOSAL SERVICE REQUESTED REVENUE INCREASE III. Six Month Rate Increase Effective period: October 1983-March 1984 Number of Months: 6 Zone 2 Zone 4 Zone 5 Zones Lafayette Va 11 ey Diablo 2, 4, & 5 Drop Box: Ra te Increase 8.2% 8.2% 8.2% 8.2% Revenue Increase 6,874 21,683 6,517 35,074 Commercial: Rate Increase 5.2% 5.2% 3.9% Revenue Increase 11,233 4,522 15,755 Residential: Rate Increase 5.1% 5.1% 4.2% Revenue Increase 35,976 27,866 63,842 Total Increase: Rate Increase 1.3% 5.7% 5.3% 4.6% Revenue Increase 6,874 68,892 38,905 114,671 Effect on Service Rates: Drop Box - Uniform increase in all rates by 8.2%; rates will be consistent in all three zones. Commercial - Zones 4 and 5 rates increased by average 6.7% to same levels in Zone 2; rates will be consistent in all three zones. Residential: Zone 2 Lafayette Zone 4 Vall ey Zone 5 Di a b 10 One Can Weekly Current 7.95 7.95 7.90 7.90 8.30 Proposed Each Add'l Can Weekly 8.30 Current '4.10 Proposed 4.10 3.55 3.75 3.55 3.75 ~~ <CCSD Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. V I aste 9/15/83 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE September 7, 1983 SUBJECT TYPE OF ACTION CONSIDER REQUEST FROM ORINDA ASSOCIATION FOR A CHANGE IN THE LEVEL OF TRASH PICKUP FOR ORINDA RESIDENTS Consider Request SUBMITTED BY Paul Morsen INITIATING DEPT./DIV. Administrative/Finance ISSUE: A request from the Orinda Association requesting an additional level of trash pickup for Orinda residents has been received. BACKGROUND: At the rate setting hearings held by the Board on May 5, 1983, a request was submitted for an increased level of trash pickup service by an Orinda resident. The Board responded by stating that if community- wide interest was expressed, the increased service level and its cost would be considered. To this end, staff requested an expression from the community through the Orinda Association. As their letter indicates, the Orinda Association poll shows a majority of those who responded would prefer an increased level of Service. Options were presented to the Orinda Association by the Orinda-Moraga Disposal Service and the one selected by poll respondents required an additional charge of $1.50 monthly per customer. This increased level of service provides one grass pickup per week and a clean-up service three times per year of up to two cubic yards of refuse. An attachment to this position paper is a copy of the survey as it appears in the Orinda Association's Newsletter. Mr. George Navone, of Orinda-Moraga Disposal Service, was contacted by staff with regard to this matter. Mr. Navone suggested that with only a 12% total response from Orinda households,his firm should conduct a survey of the community along with the next quarterly billing to ascertain if there is a wide-spread desire among Orinda customers for the increased service level and the rate increases that would be necessary for the additional pickups. RECOMMENDATION: Consider the request of the Orinda Association. INITIA REVIEWED AND RECOMMENDED FOR BOARD ACT/ON ENG. PM ~Orinda III ASSOCiation September 1, 1983 Mr. Walter Funasaki Board of Directors Contra Costa Sanitary District 5019 Imhoff Martinez, California 94553 Re: Orinda Association survey Garbage Disposal Service Dear Mr. Funasaki: As we discussed, The Orinda Association undertook a survey as a part of our quarterly Newsletter mailed to all residents of Orinda. The results of the survey con- firm the community's desire to have expanded garbage disposal service. There were approximately 670 responses to the survey with 487 in favor of additional service and 183 preferring no change. The options for additional service were provided by the Orinda-Moraga Disposal Company. A copy of the survey card is enclosed for your review. Of the two options noted on the card, the preferred choice was the tri- annual pick up plus one additional bag (322 to 165). It should be noted that the additional service would be picked up at the curb-side. We hereby request that such a change be considered by the Board. If we can provide any additional infor- mation or assist in further gathering of data, please advise. Sincerely, THE ORINDA ~b;nson ' Director DR/ b 1 encl cc: Orinda/Moraga Disposal Service, Inc., P. O. Box 659, Orinda, CA 94563 P.O. Box 97 . Orinda, CA 94563 . 254-0800 $5~OOO REWARD According to State Forestry Fire Investigator, Captain Ellis Severietti, arson is the #1 cause of fire in the Orinda area. It is usually one or two people who are responsible. One arsonist was arrested in 1979 and convicted of 175 wildfires that destroyed 4 homes in the Lamorinda area. He is currently serving the remain- ing 3 years of his prison term. Last year several fires were started by a person from ~his area who is now known to fire investigators. That person w111 be closely watched and apprehended if he returns to last year's activities. This year there is a $5,000 reward for information leading to the arrest and conviction of an arsonist. Tips will be kept anonymous. Remember the Neighborhood Crime Watch Program? The same awareness of unusual occurrances may lead to the prevention of a fire or to the identification/conviction of the arsonist. AND ALL THAT GARBAGE. . . BUMMED BARTers CAN BUS The Orinda-Moraga Disposal Service, Inc. has offered Orindans an opportunity for increased services, and Central Contra Costa Sanitary District has asked OA to poll the citizens to determine their wishes on this issue. #1 - FOR AN ADDITIONAL $1.50/monthly: The Red Line (Seville Bus) express bus now runs from stops along Moraga Way (last stop Old Black's market) to San Francisco-Fremont-by- Market Street, Monday thru Friday during commute hours. Current levels of service warrant only two runs in the morning beginning at 6:45 a.m. and 7:30 a.m., and one even- ing run leaving S.F. at 5:10 p.m. One-way fare for Orindans is $2. Grass service plus tri-annual clean-up. This includes one grass/brush can/bag per week to be placed curbside, plus the tri-annual clean-up in spring, sum- mer and fall which includes the removal of any rubbish, junk, cuttings, etc., up to two cubic yards maximum to be placed curbside. Two cubic yards is equal to approximately fourteen 32-gal. garbage cans. For more detailed information/ schedules, phone: 827-2093. #2 - FOR AN ADDITIONAL $l/monthly: . ...... ~~ . Return it in Tri-annual clean-up (as described above) in the spring, summer and fall only. Or, the level of service may remain the same as it has been in the past. It is important that we have your vote on the card enclosed. the envelope provided as soon as possible. If you have not already become an OA member for 1983--check your address plate to make sure--you may also enclose your $lO/year dues with your vote. Our garbage needs your vote; send it to our office today. (The vote, that is!)