HomeMy WebLinkAboutLos Altos Garbage Company (4)0191
Town Of Los Altos Hills October 26, 2006
Staff Report to the City Council
SUBJECT: CONSUMER PRICE INDEX (CPI) INCREASE FOR LOS ALTOS
GARBAGE COMPANY
FROM: Sarah Ragsdale, Administrative Services Director
APPROVED: Carl Cahill, City Manager C.C.
RECOMMENDATION
That the City Council approve the attached resolution amending the base compensation and service rates
paid to the Los Altos Garbage Company to reflect the change in the Consumer Price Index (CPI)
pursuant to the collection franchisee agreement with the Town.
BACKGROUND
The Town's current contract with its garbage collection contractor, Los Altos Garbage Company
(LAGCo), was drawn up in May, 2003, and has been amended for each of the last three years for
increases in the CPI. The franchise agreement, through which LAGCo provides garbage and yard waste
collection and a recycling program for the Town, itemizes residential and commercial rates for all
services. The attached resolution adjusts the compensation paid by the Town to LAGCo for their
services, but provides for no changes in the rates paid by residents.
DISCUSSION: The Town's franchisee agreement with LAGCo provides for an annual compensation
adjustment equal to 80% of the change in the CPI for the San Francisco Bay Area for the year ended
March 31 to be applied to the current Rate Year (October 1 to September 30). The increase calculated
for the previous Rate Year was 1.69% (80% of the CPI increase of 2.12%). The increase for the
current Rate Year, effective October 1, 2006, has been calculated to be 2.53% (80% of the CPI increase
of 3.16%), resulting in an annual base compensation to LAGCo in the amount of $26,600. In addition
to the base compensation, LAGCo is compensated through the agreement for debris box and extra
services.
The Town's operating budget for the Solid Waste Fund for fiscal year 2006 - 2007 is adequate to cover
the increased cost for collection services. No increase in the rates charged to Los Altos Hills residents is
recommended at this time. Attachment 1 to this report shows the rates charged to residents. The
Exhibit to the attached resolution shows the rates charged to residents and the current and new rates
charged to the Town for collection services. The new rates have been increased over last year's rates by
the CPI factor.
With an estimated budget of $1.449 million in charges for services and other income and $1.505 million
in expenses and operating transfers, the Solid Waste Fund's retained earnings should decrease by
$56,000 during the current fiscal year, resulting in a projected balance of $78,000. As the retained
earnings balance of this fund is further depleted, Council may consider passing along rate increases to
residents.
ATTACHMENT
1. Schedule of Rates Paid by Residents
2. Resolution Approving Annual Compensation Adjustments
Town of Los Altos Hills
Schedule of Rates Paid by Residents
RESIDENTIAL & COMMERCIAL:
Monthly Service to LAGCO per Agreement
Increase for Battery Collection (Increase only 2/12)
$74,067.69 $75,941.60
$630.20 $632.86
$74,697.89 $76,574.46
Quarterly Billing - Residential
A17ACHMENT 1
INCREASE
2.530%
Interim Billing -Residential & Monthly Commercial
Current CURRENT
NEW
Customer RATE TO
RATE TO
Rate LAGCO
LAGCO
$74,067.69 $75,941.60
$630.20 $632.86
$74,697.89 $76,574.46
Quarterly Billing - Residential
Interim Billing -Residential & Monthly Commercial
Special Services
$74.59
69.05
70.79
Toter Rental - Refuse
$3.48
3.21
3.29
Additional Toter (96gl)-Yrd Wst
$13.99
9.35
9.59
Additional Can (32g1)-Yrd Wst
$4.66
3.12
3.20
Key Service
$28.96
26.73
27.41
Returned Check Fee
0.00
0.00
Bin -by -the -Day:
4Yd Refuse
$123.29
69.05
70.79
4Yd Yardwaste
$109.82
69.05
70.79
7Yd Refuse
$195.81
125.33
128.50
7Yd Yardwaste
$174.05
125.33
128.50
DEBRIS BOX - CITY PORTION:
Overweight
$67.34
24.85
25.48
Rental
$77.70
71.69
73.51
Trip
$75.00
69.05
70.79
Special Services
$74.59
69.05
70.79
8 Yard Dirt/Rock Box
$549.10
254.88
261.33
20 Yard Debris Box
$347.07
180.32
184.89
20 Yard Debris Box - Contaminated
$447.07
180.32
184.89
20 Yard Debris Box - Yardwaste
$269.37
180.32
184.89
20 Yard Debris Box - Construction Recyc
$316.00
180.32
184.89
30 Yard Debris Box
$455.86
249.70
256.02
30 Yard Debris Box - Yardwaste
$378.15
249.70
256.02
30 Yard Debris Box - Yardwaste Contaminated
$555.86
249.70
256.02
30 Yard Debris Box-Recyc C&D
$414.00
249.70
256.02
40 Yard Debris Box
$569.82
312.12
320.02
40 Yard Debris Box - Yardwaste
$502.48
312.12
320.02
40 Yard Debris Box - Recy C&D
$518.00
312.12
320.02
Finance Charge
Check Fee
$0.00
0.00
Credit Check Fee
$0.00
0.00
ON CALL & MULTI SITE CLEANUP BULKY ITEMS:
Standard Refrigerator, Freezer or Air Conditioner
none
30.87
31.66
Standard TV or Computer Monitor (up to 19")
none
36.02
36.93
Television ( 20" to 27")
none
41.17
42.21
Television ( 27" to 35")
none
51.46
52.76
Television ( 35" to 45")
none
66.88
68.58
TOTAL BULKY ITEMS
RESOLUTION No. 10 6 - 0.6
A RESOLUTION OF THE CITY COUNCIL OF THE
TOWN OF LOS ALTOS HILLS
APPROVING ANNUAL COMPENSATION ADJUSTMENTS TO LOS ALTOS
GARBAGE COMPANY FOR COLLECTION OF SOLID WASTE,
RECYCLABLES AND YARD TRIMMINGS
WHEREAS, the City Council of the Town of Los Altos Hills entered into an Agreement
with Los Altos Garbage Company on May 15, 2003, for the collection of solid waste,
recyclables and yard trimmings;
AND WHEREAS, Section 12.4 of said Agreement provides for annual compensation
adjustments based on changes in the Consumer Price Index;
NOW THEREFORE, the City Council of the Town of Los Altos Hills does resolve to
approve the revised rates as set forth in Exhibit A which is attached hereto and
incorporated herein.
REGULARLY PASSED AND ADOPTED this 26th day of-�r, 2006.
ATTEST
City Clerlc (�J