Exh 8EAGENDA ITEM #8E
MARCH 28, 2005
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Solid Waste and Recycling Collection Rate Adjustment
SUBMITTED BY: Rick Carper, Public Works Director
DATE: March 15, 2005
' ' BACKGROUND: Waste Services of Florida, Inc. (formerly BFI) is requesting a rate
adjustment based on change in the Consumer Price Index for the
past year (3%). The contract between the City of Atlantic Beach
and Waste Services provides for an adjustment ° upon written
request of the City or the Contractor at least 60 days before the
anniversary date." The anniversary date for the current contract is
February 1St. Waste Services last rate increase occurred in April
2004. The contract expires May 31, 2006, but may be extended
for an additional five years by the City.
Waste Services is also requesting that a fuel surcharge increase
• - be authorized under Section 2, paragraph G. Unusual Changes or
Costs. The charge requested (4.61 %) is based on an anticipated
' ' fuel cost increase resulting from expiration of a long-term fuel
. _, contract (former rate $1.31/gal, expected rate $2.00/gal.).
' ' BUDGET: Funds are budgeted in Account 420-4201-534-3401.
The CPI rate increase is included in the budgeted amount of
$903,310 for fiscal year 2004-2005. This increase amounts to
approximately 33¢ per residential customer per month, (4,966
. residential customers). The monthly cost of the CPI increase for
' ~ all waste services would be approximately $2250. The fuel
.. surcharge was not included in the budget. It would add an
additional 51¢ per residential customer per month. The total cost
' for the fuel surcharge would be approximately $3450 per month.
RECOMMENDATION: Staff recommends approval of the requested CPI rate increase for
Waste Services, Inc. Staff is not convinced that the proposed fuel
surcharge meets the intent of Paragraph G since the examples
provided are increases caused by legal or contractual changes
.. rather than unanticipated ovefiead increases.
ATTACHMENTS: Excerpt from Annual Sanitation Cdntract dated February 1St, 2001
(Section 2, Paragraph's F. and G.)
Letter dated March 15, 2005 from Waste Services of Florida
Price Increase Summary from Waste Services of Florida
Consumer Price Index dated February 23, 2005:
REVIEWED BY CITY MANAGER: ~...1i
hr
AGENDA ITEM #$E
NTARCH 28, 2005
3. The Contractor shall be responsible for the collection
and proper disposal of all used tires improperly
deposited on City right-of-ways and collected at the
Public Works Complex.
F. CHANGE IN COST OF DOING BUSINESS
The .fees or compensation payable to the fran,chis.ee for the
second and subsequent years of the term hereof may be
adjusted upward or downward on the anniversary date of the
contract upon .written request of the City-or the Contractor
at least 60~da s before the anniversary=date. Tf request-ed
e rate adjustment shall be equa to 100% of the Consumer
Price Index (CPI), United States All Urban Consumers,
published by the U.S. Department of Labor, Bureau of Labor
Statistics for the preceding twelve (12) month contract
period. The CPI adjustment will only be applied to the cost
of collection and will not be applied to the disposal costs
as the Contractor has the right to request a separate rate
adjustment due to increases in disposal costs. If a rate
adjustment is not requested the rate adjustment for that
par ~.cular 12 mon period shall be deemed waived an shall
not e a en zn o consi era io the
a ~ustments. The City Commission shall ratify all rate
a bus ments by Resolution.
G. UNUSIIAL CHANGES OR COSTS
The Contractor may petition the City on the anniversary date
of the contract for rate adjustments at reasonable times on
the basis of unusual changes in his cost of doing business,
such as revised laws, ordinances, or requlations,~hanges in
location of disposal sites or changes in disposal charges.
Disposa c arges are not a part of this contract.
SECTION 3 - STORAGE AND OFFICE FACILITIES
The Contractor .shall establish and maintain an office and
maintenance facility within Duval County where such service may
be applied for, and complaints can be made within two (2) weeks
after the award of the bid. It shall be equipped with sufficient
toll free telephones; shall have a responsible person in charge
and shall be sufficiently staffed during collection hours and
shall be open during the operational hours of this contract,
7:00 AM to 7:00 PM.
Z5
4~
AGENDA ITEM #8E
IIIARCH 28, 2005
Steve Wright
• General Manager
~+~
.._, .._..,...._...._.._.---• .----....... Serv~c, S -_.._.._.._7580-Ehilips.highway-._....-._....---°--_°--
7acksonvitle, F132256 '
of Florida /nC. Tel: (904}338-D944
Fax: (904) 737-7614
Cell: (904) 509-1784 .
Email; Ibranz®ceri.biz
March 15, 2005
City of Atlantic Beach
Attn: Rick Carper
1100 Sandpiper Lane
Atlantic Beach, Florida 32233
RE: Notification of Rate Increase
Dear Rick:
In accordance with the terms set forth in our residential and commercial. collection and disposal
of solid waste, recycling and yardwaste contract, WSI is requesting an annual CPI increase on
the service rates in Atlantic Beach effective February 1, 2005.
As you know, the agreement allows for an annual increase based on Consumer Price Index ~~
(CPI) information in effect for the twelve (IZ) month period ending January 2004. Please firicl
attached the January Consumer Price Index and a worksheet disclosing the new rates for
contract year 2005.
We are also requesting the Atlantic Beach to approve a fuel surcharge per the agreement under
' "Unusual Changes or Costs" applied to the new rate to help recover the extraordinary increase in
fuel prices. WSUAIlied had the.foresight to lock into a fuel contract during 2002. When most
transportation vendors were passing on these increases through surcharges in 2004, WSI was
' ' able to maintain their costs and forego any increase. Unfortunately, the contract expired in
February, 2005. Our fuel rate increased from our existing $1.31/ per gallon to a current price of
$2.12/per gallon. The following is a calculation supporting the surcharge:
Residential
A normal weekly route tnzck will operate 55 hours per week. The average monthly route hours
would be calculated by taking the SS hours per week multiplied by 4.33 = 23 8 monthly truck
operating hours. At four gallons fuel usage per hour, the average route uses 953 gallons ~of fuel
per month.
953 gallons per month multiplied by $0.81/gallon increase = $772 increase per route, per month
• or a 62% percentage increase in monthly fuel cost per route. The CPI increase will only cover
• 3% of the fuel cost, or $37 per route, per month. Ex: 953 gallons X $1.31= $1,248 X 3% _ $37
per route vs. $772 actual per route monthly increase •
We are requesting the City to allow us a fuel adjustment to cover the additional $735 per month,
per route not covered by the annual CPI of 3%.
AGENDA ITEM #8E
MARCH 28, 2005
One route will service approximately 750 premises per day, or 3750 customers weekly. Since
we service these same 3750 customers per route each week four times per week, the fuel
surcharge would be calculated by dividing the $735 variance by the 3750 customers and
' multiply by four services to arrive at a $0.784 fuel surcharge per premise, or home.
($772 fuel increase less $37 covered by CPI = $735 divided by 3750 = $0.196 multiplied by
four contracted services = $0.784 fuel surcharge).
Commercial
Using the same calculation as residential, one commercial route will have the same $735
monthly fuel variance. The commercial route which operates in Atlantic Beach will service
12,000 yards per month. The calculated fuel surcharge per yard on commercial would be $0.06
. , per yard ($735 divided by 12000 monthly yards = $0.06)
Roll-off
' ' Using the same calculation for roll-off, one roll-off route will have the same $735 monthly fuel
variance. A roll-off route will service 200 pulls per month. The calculated fuel surcharge per
pull on roll-off would be $3.68 per pull ($735 divided by 200 monthly pulls = $3.68)
If you have any questions, please don't hesitate to contact me directly at (904) 338-0944.
Sincerely,
..
teve Wright
General Manager
Attachments: CPI data sheet, Rate Sheet
AGENDA ITEA9" #8E
NTgIZCH 28, 2005
Residential
Price Increase Summary February, zoos
ATLANTIC BEACIi SERVICE
2005 Requested
2004 Proposed Additional
llnlt Unit 'Fuel
Rate Rate Percent :Surcharge ~Poresnt
(all resideniial Services) - $11.06 .$11.39 3.00% X0,51 -4.61%
Attachment One
Cammercia! Multl=Family
Curbside all residential services $11.06 $11.39 3.00% ~.$D.b1 4,61%
AttachmentTwo
CommerciallMulti-l=amlly
Curbside recycling & whltegoods .2.11 $2.17 .3.00% ~2Z1 4,61
AttachmentThree
CornmerciallMulUFamlly Recycling
Eight;Yard Qumpsters .$1.47 $1.51 3,00%. $1.54 4,61%
$26.33 $27.12 3.00% $27.54 4,81°l0
Attachment Four
Commercial/Multi-Family.
5 yards Z x week
Curbside yard (rash - $11.06 $11.39 3.00% $11,57 4,81%
Attachment Five
CommerciallMulti-Family
GarbagelMech Cont (yds) '.$1,53 .$x.58 :3.00% .$1.60 4,51%
Extra Service $1,531Yd $1,58Nd ~ '3.00% $1.60 ,4,61
Bulk Pickups `$15.79 .$16.27 3.00% $16.52 4.61%
Attachment Six
ROII-off hauls $26321 $271,11 3,00% ,$278.35 4.61%
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AGENDA ITEM #8E
• MARCH 28, 2005
. . ~ .. _,~
• - For Release: BUREAU OF LABOR STATISTICS
' 8:30 A.M., EST, Wednesday, SOUTHEASTERN REGIONAL OFFICE
• February 23, 2005 ATLANTA, GEORGIA
TELEPHONE: 404.331.3 415
Request Document 9105
• CONSUMER PRICE INDEX
(1982-84x100}
January 2005 •
a e earners & clerical wotKers
A ur an consumers
Percent Percent Percent Percent
• ~ Group change ~ohange change
Jan 04 Change
Dec 04
Jan 04
Jan 05 Dec 04
Jan 05 Index Jan OS Jan 05
• - Index
1f.5. City Average
7
190 3 0 02 186.3 3,0 0.2
-
All Items (1982-84=100) . _ 554.9 - ~
All Items (1967=100) 571'2
5
189 _
2.8 0.3 189.0 2.8 0:3
5
0
Food and beverages .
8
'191 3.0 0.6 187.3 2.9
5
'2 .
0
~4
Housing
Shelter .
221.0 2,7 0.5
3
0 214.4
213,7 :
3:0 .
0.3
Rent of primary residence
. 214.5
1
116 3.0
0,3 ,
•-2.3
~ 116,1 0.3 -2:1
5
Apparel
• .
0
164 4.5 -0:5 162.6 5.0
4
5 -0.
0
6
.. Transportation
Medical care .
316.8 4.3 0.6
4
0 316.3
106.5 .
0.9 .
0.4
. , Recreation 1/
tion & communloatlon 1! 108:9
112:7 0.9
1,4 .
0;1
5 '110.6
0
318 0.7
2.8 0.1
^.7
.Educa
• .Other Dods and services 2 6 0.
309.3
All ur an consumers .
Wa a eamers & clerical wotKers
!'BII.LItI
~E,'IL9111 rgtOt:llt PLtU9111
Group
changc
changc
Dec 04 changc
Jan 04 Ohnngo
~ Dcc 04
indox Jan 04
Jan 05
Jan 05
Index
an an OS
.. .oath
All items (1982.84100) 183.6 3:0 '0:2
- 180.5
292:3 .3.1
- 0.'1
All Items (Dec 1977=100) 297.8 ~ -
B
2 0.1 ~ 185.6 2.8 0.1
Fcod and beverages
.. 186.6
'175,fi .
.31 p,5 173:7 3.4
Q
'1 0.~1
4
-3
Nouclnp
APParoI
1.Z7,Z _Q~1
5
0 -Z,4
-0.1 128,4
159.6 ,
5.5 ..
•0.3
.
'Transportation .161.9
~n87 .
n.l
n 5 ana,n 4,2 4.4
.
0
'I
... M4dIS~l r~ra 2
' 109 0.9 0,2 IOts,7 0.8 .
Re~reau0n 1J
Cducation r~ comrnunlcation'1! .
Z4fi ~ 0.~ o.n
Q ~ 107.E
g42,8 -o ~
3,1 o.o
i,G
o cods and 9QrYic49 Z7
• ~ lI ' I111JlrJtCS UI I a Dc~eIllUer 1891 LL100 ptaee.
- wei avau~a~si~. ~ .
' ~ Inlet net aUdtess• htt0'~lwww bls ~av/ro4fiome.htm •
Fax-on-demand number is 404-331-3403
I.
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