HomeMy WebLinkAbout2011-05-24 City Council Item No. 10CITY OF
LADE t~LSIHO
DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: May 24, 2011
SUBJECT: CR&R -ANNUAL CONSUMER PRICE INDEX INCREASE
Backaround
CR&R Incorporated holds a contract in the City of Lake Elsinore to collect and dispose
of all refuse and to collect and process all recyclables in the City. The contract specifies
that rates be adjusted annually to reflect changes in the Consumer Price Index (CPI)
and any increases in the Riverside County Landfill Fees. The current monthly residential
rate is $22.36 which includes the Landfill Fee of $3.78.
Discussion
City staff has been notified that the County of Riverside Waste Management
Department will not be requesting an increase to the rates this year.
This year, CR&R is requesting a CPI rate adjustment per the contract. The requested
increase is based on the data supplied by the Bureau of Labor Statistics for the 12
months ending March 31, 2011, in which the Consumer Price Index (CPI) for the Los
Angeles, Riverside and Orange County area increased by 3%.
This CPI increase does not apply to the $3.78 Landfill Fee portion of the monthly
service cost. Accordingly, the CPI increase will result in a $0.54 per month increase for
residential refuse collection. The monthly residential rate will go from $22.36 per month
to $22.90 per month.
In addition to the requested increase, CR&R would like to implement a Senior Citizen
(65 & older) and Active Military Personnel (deployed into a conflict zone) Discount of
10% to those that qualify. The discount applies to residential rates only.
AGENDA ITEM NO. 10
Page 1
Annual Consumer Price Index Increase
May 24, 2011
Page 2
Fiscal Impact
The contract specifies that 20% of CR&R's gross revenues, less landfill fees, shall be
payable to the City at the end of each quarter of the fiscal year. This rate adjustment
will result in a slight increase in revenues to the City.
Recommendation
Because the proposed rate increase falls within the allowable amount of the approved
contract, staff recommends the Council receive and file this document.
Prepared by: Nicole Fields
Engineering Tech II
Ken Seumalo 0
Director of Public Works
Approved by: Robert A. Brad)
City Manager
Page 2
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Page 3
EXHIBIT "C"
Schedule of Rates
(effective July 1, 2011)
3 Fully automated single family residential refuse collection, recycling, composting,
transfer and disposal:
Monthly Rate:
$ 22.90 *
4 Fully automated single family residential additional refuse collection, recycling and
composting container:
Monthly Rate: $ 10.68 *
5 Single family residential additional bulky item pick up:
Per Pick Up (above the minimum of two per calendar year): $ 10.68 *
* Senior Citizens 65 and older and Active Military Personnel deployed into a conflict zone are entitled to a 10% discount
6 Commercial, industrial, and multi-family residential refuse monthly bin rates (one 3 cubic yard bin)
with the following pick ups per week:
1 x week
$ 142.78
2 x week
$ 258.25
3 x week
$ 387.41
4 x week
$ 516.50
5 x week
$ 645.62
6 x week
$ 774.74
7 Commercial, industrial, and multi-family residential refuse monthly bin rates (one 1-1/2 cubic yard bin)
with the following pick ups per week:
1 x week
$ 107.06
2 x week
$ 203.03
3 x week
$ 304.57
4 x week
$ 406.10
5 x week
$ 507.63
6 x week
$ 609.32
8 Temporary 3 cubic yard bin rate:
9 Redeliver and reinstatement rate:
10 40 cubic yard roll-off bin rate:
11 10 cubic yard roll-off/lowboy bin rate:
$ 96.80 per bin
$ 44.95 per occurrence
$ 260.59 +MRF/landfill fees
$ 260.59 + MRF/landfill fees
Page 4
Bureau of Labor Statistics Data Page 1 of 1
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Change Output Options: From: zom iR To: zoul a
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Data extracted on: April 19, 2011 (1:44:34 PM)
More Formatting ODtionsy
Consumer Price Index - All Urban Consumers
Series Id: CUURA421SA0
Not Seasonally Adjusted
Area: Los Angeles-Riverside-Orange County, CA
Item: All items
Base Period: 1982-84=100
Download: 'M -.I.
Year
Jan
Feb
Mar
Apr
May
Tun
Jul
Aug
Sep
Oct
Nov
Dec
Annual
HALF3
HALF2
2001
174.2
175.4
176.2
176.6
177.5
178.9
178.3
178.4
178.8
178.3
178.1
177.1
177.3
176.5
178.2
2002
178.9
180.1
181.1
182.2
182.6
181.9
182.2
183.0
183.4
183.7
184.0
183.7
182.2
181.1
183.3
2003
185.2
186.5
188.2
187.6
186.4
186.3
186.3
186.9
188.2
187.8
187.1
187.0
187.0
186.7
187.2
2004
188.5
190.1
191.5
191.9
193.3
193.7
193.4
193.1
194.5
196.3
196.9
195.2
193.2
191.5
194.9
2005
195.4
197.4
199.2
201.1
201.5
200.7
201.4
203.1
205.8
206.9
205.6
203.9
201.8
199.2
204.5
2006
206.0
207.5
208.5
210.5
212.4
211.1
211.4
211.9
212.9
211.4
211.1
210.6
210.4
209.3.
211.6
2007
212.584
214.760
216.500
217.845
218.596
217.273
217.454
217.330
217.697
218.696
219.943
219.373
217.338
216.260
218.416
2008
220.918
221.431
223.606
224.625
226.651
229.033
229.886
228.484
227.449
226.159
222.229
219.620
225.008
224.377
225.636
2009
220.719
221.439
221.376
221.693
222.522
223.906
224.010
224.507
225.226
225.264
224.317
223.643
223.219
221.943
224.495
2010
224.610
224.620
225.483
225.916
226.438
225.877
225.991
226.373
226.048
226.794
225.941
226.639
225.894
225.491
226.298
2011
228.652
229.729
232.241
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Page 5
http://data.bls.gov/cgi-bin/surveymost 4/19/2011
April 25, 2011
APR 2 7 Zp11 D
MANAGER'S OFFICE
Mr. Bob Brady
City Manager
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530
Re: Annual Consumer Price Index Adjustment
Dear Bob:
As you know, there is a condition in the current contract between the City of Lake
Elsinore and CR&R, Incorporated (CR&R) that states that the rates illustrated in Exhibit
"C" shall be adjusted annually to reflect the change in the Consumer Price Index (CPI)
as well as changes to the County of Riverside landfill tipping fees.
We were recently notified by the County of Riverside Waste Management Department
that they will be maintaining their tipping fees at current levels for the upcoming fiscal
year. As you may recall, CR&R did not request or adjust our rates in 2009. We did ask
for and received a modest 1.85% last year. This year, fuel prices continue to escalate
and CR&R is respectfully requesting an adjustment of 3% to the service component of
our rates based upon the Consumer Price Index for the month ending March 2011. We
are making this request after careful consideration and believe that this current
adjustment will allow us to continue to provide the quality service that the City has grown
to expect.
We appreciate the opportunity to be of service to the residents and businesses of the
City of Lake Elsinore. Please do not hesitate to call if you have any questions or
comments.
Sincerely,
J. Alex Braicovich
Senior Vice President
cc: David Fahrion, CR&R
CR&R INCORPO A D chments
P.O. BOX 1208
PERRIS, CA 92572
1706 GOETZ ROAD
PERRIS, CA 92570
951.943.1991
951.657.5493 Fax
WWW.CRRINC.NET
Page 6
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