Agenda Item 8CAGENDA ITEM # 8C
APRIL 25, 2011
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Advanced Disposal Annual CPI Cost Adjustment Request
SUBMITTED BY: Rick Carper, P.E., Public Works Director
DATE: April 7, 2011
BACKGROUND: The City's sanitation contractor, Advanced Disposal, is requesting
an annual fee increase of 1.2% for the upcoming contract year (6/01/2011
through 5/31/2012). The base contract price, excluding fuel cost, of $12.96
(monthly cost per residential unit) would increase to $13.11. The proposed
increase is in accordance with the Consumer Price Index — Urban and equals an
annual increase of approximately $10,000.00 in the Pick up and Haul contract.
An annual change in contract price to compensate for Consumer Price Index
fluctuations is authorized by Section 2.F of the contract. This is the first CPI
increase requested under this contract, which expires 5/31/2014.
The Sanitation contract also contains an allowance for a quarterly price change
due to changes (up or down) in fuel costs. The significant increases in fuel
prices since the beginning of this fiscal year have resulted in a total increase of
$0.53 per residential unit per month. Combining the fuel cost increases with the
requested CPI increase will result in a total monthly cost of $15.70 per unit (cost
at contract inception was $15.25) for an overall annual rate of increase of less
than 1 %. The highest monthly rate since contract inception has been $16.12
(third quarter of 2008) and it has been as low as $14.74 (second quarter of
2009).
RECOMMENDATION: No action required — for Commission information only.
Both the requested base fee increase of 1.2% to the Advanced Disposal contract
for the period of 6/01/2011 through 5/31/2012 and the fuel price increase are
required by contract.
BUDGET: $1,250,000 is budgeted for Sanitation Pick up and Haul, Account 420-
4201- 534 -3401. Cost for the first six months of FY 2010 -2011 totaled
$605,689.
ATTACHMENTS: 1. Advanced Disposal letters requesting rate increase
2. Consumer Price Index Information
REVIEWED BY CITY MANA
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AGENDA ITEM # 8C
APRIL 25, 20I I
Table 1. Consumer Price index for All Urban Consumers (CPI -U): U.S. city average, by expenditure category and commodity and
service group
(1982 -84 =100, unless otherwise noted)
See footnotes at end of table.
Unadjusted
Relative
Unadjusted
percent change to
Seasonally adjusted
r
importance,
indexes
July 2010
from-
percent change from -
C n I `�
r v
December
2009
June
July
July
June
Apr. to
May to
June to
2010
2010
2009
2010
May
June
Jury
Expenditure category
All items ......................................................... ...............................
100.000
217.965
218.011
1.2
0.0
-0.2
-0.1
0.3
All items (1967 =100) ..................................... ...............................
852.926
653.066
-
Food and beverages ................................... ...............................
14.795
219.562
219.539
.9
.0
.0
.0
.0
Food ......... ............................... . ...... ................. .................
........
13.738
219,218
219,121
.9
.0
.0
.0
-.1
Food at home .......................................... ...............................
7.801
215.361
215.256
.7
.0
.0
-.1
-.1
Cereals and bakery products ................ ...............................
1.108
250.260
250.172
-1.3
.0
.2
-.6
-3
Meats, poultry, fish, and eggs ............... ...............................
1.745
208.171
206.989
3,6
.4
.4
1.0
.3
Dairy and related products ................. ...............................
.820
197.947
198.991
3.0
.5
.2
.1
.5
Fruits and vegetables ............................ ...............................
1.153
271.907
265.967
.1.8
.2.2
-11
-1.3
-1.9
Nonalcoholic beverages and beverage materials ................
.952
180.381
161.121
-.6
.5
-.8
-.2
.6
Other food at home ............................... ...............................
2.023
191.001
191.529
3
.3
.3
-.3
.2
Sugar and sweets ............................... ...............................
.295
199.737
201.180
3.1
.7
1.2
-1.2
.6
Fats and oils ........................................ ...............................
.232
199.375
200.506
-.3
.6
.1
.0
.0
Otherfoods ......................................... ...............................
1.496
204.874
205.166
-.2
.1
.1
-.2
.1
Other miscellaneous foods 1 2 .......... ...............................
.439
121.551
122.052
A
.4
-1.4
.8
.4
Food away from home 1 . .................................... I...................
5.937
225.797
225.710
1.1
.0
A
.1
.0
Other food away from home 1 2 .................................
.326
159.271
159.338
1.8
.0
-.1
.5
.0
Alcoholic beverages .................................. ...............................
1.056
222.680
223.639
1.3
.4
.2
.1
.5
Housing ....................................................... ...............................
41.960
216.778
217.076
-.5
.1
.0
-.1
.1
Shelter ....................................................... ...............................
32.289
248.470
248.677
-.7
.1
A
A
.1
Rent of primary residence 3 ...........................................
248.999
249.126
A
.1
0
.1
.1
Lodging away from home 2 ..................... ...............................
.769
140.476
143.358
2.8
2.1
2.5
1.3
.2
Owners' equivalent rent of residences 3 4 ..............................
25.208
258.352
256.395
-.2
.0
.0
.1
.1
Owners' equivalent rent of primary residence 3 4 ................
23.593
256.347
256.387
-.2
.0
.0
.1
.1
Tenants' and household insurance 1 2 .... ...............................
.347
125.289
125.865
3.8
.5
.1
.2
.5
Fuels and utilities ...................................... ...............................
51061
217.820
219.614
3.1
.8
-.4
-1.2
.6
Household energy ................. .......................................... -...
4.028
193.678
195.268
2.5
.8
-.6
-1.6
.6
Fuel oil and other fuels 1 ....................... ...............................
.276
265.521
261.257
13.5
-1.6
-2.0
-2.6
-1,6
Gas (piped) and electricity 3 ............................
3.752
198.207
200.177
1.7
1.0
-.5
-1.6
.8
Water and sower and trash collection services 2 ...................
1.052
169.745
171.156
6.0
.8
.5
.2
.4
Household furnishings and operations ...................... .............-
4.590
125.589
125.239
-3.1
-.3
.0
-.4
-A
Household operations 1 2 .............. ...I......................
.781
150.560
150.747
.5
.1
.3
.0
.1
Apparel ........................................................ ...............................
3.695
118.319
115,248
-.3
-2.6
.2
.8
.6
Men's and boys' apparel ........................... ...............................
.903
112.446
109.670
-.1
-2.5
.5
2.3
-.2
Women's and guts' apparel ............. ..... ..... -- ................ ...........
1.580
104.746
100.659
-1.0
-3.9
.3
.2
1.4
Infants' and toddlers' apparel .................... ...............................
.196
112.930
112.882
1.7
.0
-.4
.8
2.2
Footwear ................................................... ...............................
.721
127.198
125.212
.6
-1.6
.0
.6
.2
Transportation ............................................. ...............................
16.685
192.651
193.038
5.6
.2
-1,2
-1.0
1.3
Private transportation ................................ ...............................
15.497
187.593
188.028
5.4
.2
-1.4
-1.0
1.4
New and used motor vehicles 2 .............. ...............................
6.386
97.176
97.820
4.5
.5
.2
.3
.3
New vehicles ......................................... ...............................
3.573
137.503
137.323
.9
-.1
.1
A
.1
Used cars and trucks ............................ ...............................
2.012
144.399
148.379
17.0
1.4
.6
.9
.8
Motor fuel ................................................ ...............................
4.525
234.868
234.642
7.7
-.1
-5.0
-4.1
4.4
Gasoline (all types) ............................... ...............................
4.337
234.214
234.091
7.4
-.1
-5.2
-4.5
4.6
Motor vehicle parts and equipment 1 ...... ...............................
.401
136.686
137.236
2.6
.4
.3
.4
A
Motor vehicle maintenance and repair 1 ...............................
1.167
247.635
247.536
1.9
.0
.0
.1
.0
Public transportation ................................. ...............................
1.187
257.825
257.337
7.7
-.2
1,5
-.5
-.8
Medical care ................................................ ...............................
6.513
388.199
387.898
3.2
-.1
.1
.3
-.1
Medical care commodities 1 ...................... ..............................1
1.611
314.888
314.113
3.2
-.2
.1
.0
-,2
Medical care services ................................ ...............................
4.902
410.802
410.710
3.2
.0
.0
.4
.0
Professional services .............................. ...............................
2.796
327.938
328.899
2.8
.3
,0
.4
.3
See footnotes at end of table.