Environmental Services - 08-02-1994 - Page 001City ew-Covina
Memorandum
AGENDA
To: City Manager
ITF-1
ITEM NO.
City Council DATE 8-2-94
9 vMNM ON RcMM MM
From: Environmental Services Director
Subject: Residential Waste Collection - August 2, 1994.
Rate for Additional Trash Container
Summary: This a report on the provision of and collection rate for
a residential customer who has a 60-gallon container for
trash and 90-gallon container for yard waste and requests
another 90-gallon container for trash. The 249 residents
that have requested another trash container have not
reduced their trash production and pay three cents less
per month than the basic 90-gall6n service.
On July 19 the City Council reviewed and approved a request from
West Covina Disposal for an increase in their collection rates
consistent with the change in the Consumer Price Index for the
previous year. During the course of City Council's review the rate
for a resident who has a 60-gallon trash container and contracts
for another 90-gallon trash container was discussed. It was noted
that they would be paying three cents a month less than a resident
with one 90-gallon trash container. City -Council requested West
Covina Disposal to submit a proposal that would eliminated the
discrepancy and relieve the subsidy of this resident by the
commercial customers. Attached is West Covina Disposal's proposal.
Staff is recommending approval.
History
When the City Council was in final negotiations with West Covina
Disposal on the automated waste collection system rates in 1992,
several numbers were modified during the City Council meeting.
There was no opportunity to review, all the rates for internal
consistency. During the last review of rates this internal
consistency review occurred.
In 1992,.the City Council wanted to have a collection rate for the
60-gallon container service to be no more than $10 per month. The
Company had indicated the cost for the collection of the 60-gallon
would be $12.78, just like the 90-gallon service., According to the
Company this rate was identical since the cost for.the 60-gallon
container and its service was virtually the same as that for the
90-gallon container service.
To achieve the $10 service level, the $2.78 was shifted to the
commercial collection rates. It was estimated that 20 percent of
the residential customers, 4,300 homes, would take the 60-gallon
service since they felt they produced less waste and would not
exceed the 60-gallon capacity. We now have 4,018 residents that
have such service.
At the same time this shifted rate was set, the rate for an
additional 90-gallon container for trash or yard waste was set at
$2.75 per month. Thus, a resident who had 60-gallon trash service
could add a 90-gallon trash container and pay three cents less than
the resident with a 90-gallon trash container ($12.75 vs.. $12.78).
This discrepancy carried forward in rate review in 1993 and the
current rate schedule.
West. Covina Disposal reports there are 369 residential accounts
that have 60-gallon trash service with 1 or more additional 90-
gallon containers. Of. this number, 249 have additional 90-gallon
containers for trash. One resident on the west side of Lark Ellen
south of Cameron Avenue has a. 60-gallon trash service with an
additional four 90-gallon,containers.for trash.
0
•
It is obvious that most, if nc
gallon service with additioi
reducing the amount of waste t
trying to "beat the system".
the City Council's objective
service that encourages ,the
recognizes those who do so.
60-gallon trash container and
trash are not meeting the Cit
the commercial customers to u
service rate? In staff's opi
Proposal
t all, of the 249 residents with 60-
eal 90-gallon container(s) are not
zey are producing. They are probably
As such, they are not complying with
:o have the Company offer a level of
reduction in generated waste and
Since those households that have the
one or more 90-gallon containers for
( Council's objective, is it fair to
zderwrite these residents 60-gallon
Zion, the answer is no.
West Covina Disposal, in their' letter of July 25, 1994, proposes to
eliminate the added 90-gallon trash container option for those
residents with the 60-gallon trash service. They propose to
alleviate the current situati In for those customers with. this level
of service by the following steps:,
1. Mail a letter to all customers involved explaining our
new position. Incllude a reply notice with the options
available to the resident. Alternatives will include:.
- remain at 60/96 [container] service only.
change to 90/90 [container]. service with the option
of keeping an.extra 90 gall -on black barrel.
allow the customer a 1 month grace period to make a
free service change ofthe above options to meet
their service needs.
2. Allow customers 3 weeks to reply to the notice and answer
any questions or concerns.
site survey atl the customer's request for service
level needs.
3. Make the necessary, barrel changes per the customer
requests.and waive the delivery charge for this group of
customers during the 1 month grace period.
4. The possible reduction in the 60 gallon trash service
will be reflected in the following year Waste Collection
Rate Review under the 1160 Gallon Rate Re -alignment
category."
The Company proposes no chang(
container for yard wastes. T
to improve and maintain their
also encouraging the collecti(
for diversion. Thus, for a
additional container a resides
additional 90-gallon containe
be added to the basic 90-gall
residential service options.
Options
The City could decide not to
gallon trash container. Thi
objective of the 60-gallon tra
in generated waste. This
residents who opted for tho
reducing the amount of trash 1
fair to the commercial rates
gallon service rate for the v
The City could establish an it
trash container for the 249 60
$4.27 per month'or an.additio
trash container. only. Whi
disparity, it would not reliv
their underwriting of the 60-c
Thus, the fairness issue has
to the rate for the added 90-gallon
e City is encouraging the residents -
yards and landscaping. The City is
n of all of the produced yard wastes
monthly charge of $2.88 for each
t would have access to any number of
s for yard wastes only. This would
n.container for yard wastes in both
change the rates for the added 90-
3 would not be consistent with the
;h service to encourage the reduction
would also not .be fair for those
60-gallon trash service and are
hey produce. In addition, it is not
to underwrite the 249 residents 60-
:ry same reason.
creased rate for the added 90-..gallon
-gallon services. This rate could be
i of $1.39 to the rate for the added
Le this would eliminate the rate
the commercial collection rates of
allon service for the 249 residents.
iot been addressed by this option.
Analysis
Staff believes the proposal by West Covina Disposal has merit and
is worthy of., support and adoption by the City Council. The --
approach the Company proposes is a fair way to resolve the existing
249 services with the additional 90-gallon trash container. The
review of the 60-gallon trash service is appropriate for review
during next year's rate review process. This would give the 249
residents ample time to adjust their services. The review of the
60-gallon services and the spread to the commercial rates. are
reviewed during this rate review each year.
The other options listed above are not consistent with the City
Council's objective in establishing the lower rate for the 60-
gallon service. They are also not fair to the commercial
customers.
Recommendation
It is recommended the City Council approve West Covina Disposal's
proposal by approving a revised collection rate schedule as shown
in Exhibit A by approving the following:
.REVISED AMENDMENT NO. 3 TO THE AGREEMENT BETWEEN THE CITY OF
WEST COVINA AND ARAKELIAN ENTERPRISES, INC. DBA WEST COVINA
DISPOSAL FOR THE COLLECTION OF SOLID WASTE, RECYCLABLES, YARD
WASTES AND OTHER COMPOSTABLES.
Michael L. Miller
Attachments
9
in
WEST COVINA DISPOSAL. COMPANY
P.O. BOX 1807
WEST COVINA, CALIFORNIA 91793
(818) 962-4031
Julv 25, 1994
City of West Covina
Michael Miller
Environmental Services Director
1444 N. Garvev Ave.
P.O. Box 1440
West Covina, CA 91793
Enviirron ent31 Servi as
JUL 2 0 i9, j y
Clty of West Covina
Dear Mike, r
Per our recent discussions, 369 residential accounts have the 60/90 service with 1 or more
additional 90.gallon, barrels. Of those customers, 249 have additional black 90 gallon trash
barrels. This represents approximately 1 % of the automated single family dwelling customer base.
Sharing the sentiments of the City Council, the commercial sector should not have to bear the
burden of subsidizing this loophole in the system. The original intent of the 60 gallon service was
to encourage source reduction through the reduced `rate, not added expense to commercial
customers.
West Covina Disposal does not feel that the proposed breakout of a new rate structure for this
service level would also be the original intent since the commercial sector would still subsidize half
the original costs. The new rate structure would also cause a substantial financial burden for West
Covina Disposal because of programming changes as well as the labor intensity to change all the
commercial rates for the September billing. There would also be the added confusion of the recent
City Council approved rate increase included in the August billing.
It is the recommendation of West Covina Disposal that we discontinue the practice of allowing
residents with 60/90 service to add an extra black 90 gallon barrel. To alleviate the current
situation for those residents who have the service, we will initiate the following steps:
1) Mail a letter to all customers involved explaining our new position. Include a reply notice
with the options available to the resident. Alternatives will include:
- remain at 60/90 service only
- change to 90/90 service with the option of keeping an extra 90 gallon black barrel.
- allow the customer a 1 month grace period to make a free service change of the
above options to meet their service needs
2) Allow customers 3 weeks to reply to the notice and answer any questions or concerns
- site survey at the customer's request for service level needs
3) Make the necessary barrel changes per the customer requests and waive the delivery
charge for this group of customers during the 1 month grace period
Page Two
4) The possible reduction in 60 gallonl trash service will be reflected in the following year
Waste Collection Rate Review under the "60 Gallon Rate Re -alignment category."
It is West Covina Disposal's opinion that the above recommendation would be the most economical
and equable solution available. We look forward to staff support of this proposal. If you have any
questions, please call me at (818) 962-4031.
Sincerely,.
Terry Sc eider
General Manager
EXHIBIT A
SCHEDULE OF MAXINI-,.TM RATES TO BE CHARGED
AND COLLECTED FOR COLLECTION'SERVICES OF GARBAGE
OR RUBBISH IN THE CITY OF WEST COVINA
Single Family Monthly rate on or after 911194
Two 90-gallon containers $13.33
One 60-gallon container for $10.42
trash and one 90-gallon
container for yard waste.
Additional container
$ 2.88
(90-gallon container for trash
is only available to the
90-gallon basic service. It is
not available to the 60-ciallon
service. Either service may have
additional container(s) for yard
waste only.)
Extra pick up
90 Gallon container
$13.32
60 gallon container
$10.42
Service charge for change
$15.63
of container
Roll -out service for. any
$10.42
resident except severely
disabled
Roll -out service for
-0-
severely disabled
Condominiums & Apts. with
$10.42
curbside service (one
60-gallon trash container)
Estimate for Special
$ 3.89
Pickup
Scout Service
(1 time per week)
1 cubic yard
$33.63
Bin (1.5 cu. yard)
$87.48
Bin (3 cu. yd)
$99.70
July 26, 1994
EXHIBIT A (continued)
Multi -Family Residential
Apartments or multiple units
containing four or more
dwelling units, twice weekly
pick-up of rubbish at centra
location on premises - to be
billed monthly and the total
amount of the monthly billin
to be paid by owner.
Additional pick-ups
Bin rental
(one container per month)
Commercial:
3 Yard Bin
1 time per week
2 times per week
3 times per week
4 times per week
5 times per week
6 times per week
1.5 Yard Bin
1 time per week
2 times per week
3 times per week
Reinstatement
Additional Services
3 Yard Bin/3 day rental
3 Yard Bin/1 month rental
Additional Dump
Roll -off bin/5 day rental
(per dump)
Additional days
(per day)
Extra maintenance of bin
Locking .lid set up
July 261,1994
Monthly rate on or after 9/1/94
$ 8.22 per unit
$ 81.17
$122.34
$161.12
$.185.34
$214.4.1
$249.56
$ 67.83
$102.98
$130.85
$ 11.97
$ 71.62
$121.38
$.33.87
$321.47
$ 9.60
$ 44.80
$`27.50