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Resolution No. 82-96 kej x S(2 CITY OF TIGARD, OREGON RESOLUTION No. 82— A RESOLUTION OF THE TIGARD CITY COUNCIL INCREASING GARBAGE RATES. WHEREAS, on July 12, 1982, representatives of the solid waste disposal companies serving the City of Tigard appeared before the Council to present evidence in support of a request for rate increases; and WHEREAS, on July 26, 1982, representatives of the solid waste disposal companies serving the City of Tigard met with City staff; and WHEREAS, the Council has been satisfied by the evidence submitted that the requested increase is justified and necessary on account of increased costs of the conduct of the business of the franchises for such items as increased landfill fees, increased labor costs and increased fuel costs; and WHEREAS, the Tigard City Council wishes to increase the current garbage franchise collection rate_ to cover the aforementioned costs. NOW. THEREFORE, the Tigard City Council resolves that the following rate schedule be adopted, to become effective October 1, 1982. SOLID WAST2 DISPOSAL TIGARD SCHEDULE OF RATES OCTOBER 1, 1982 I_ RESIDENTIAL RATES One Can $ 6.75 �..y� On Call Service $3..45 Two Cans 12.75 Each Additional 6.00 i f II. COMMERCIAL RATES A. CANS STOPS PER WEEK One Two Three Four Five Six One 7.20 13.75 20.55 27.30 34.20 41.45 Two 13.40 25.50 38.05 50.75 63.35 75.95 Each Additional 5.30 10.55 1.5,70 20.90 26-10 31.25 r i Y s �d 3'. B. CONTAINER SERVICE - LOOSE STOPS PER WEEK 6 One Two Three Four Five Six Container Size One Yard 40.10 73.85 105.95 Each additional F s' One and 1/4 yards 46.60 85.30 122.00 157.60 188.10 s Each additional 41.20 75.45 108.10 139.60 166.65 One and 1/2 yards -39x95 102.05 145.70 184.60 222.90 Each additional 48.35 89.10 130.25 163.85 196.85 s' Two yards 69.85 132.05 288.00 237.80 286.40 Each additional 62.90 114.90 159.65 199.90 239.25 Three yards 89.45 167.30 235.60 295.00 360.35 Each additional 81.75 154.40 220.15 284.70 347-45 Four yards 109.05 203.10 295.90 376.70 450.85 x Each additional 102.15 196.25 285.60 369.75 441.45 Five yards 126.15 242.55 353.55 458.05 548.35 Each additional 121.70 229.65 334.20 434.10 526.90 Six yards 138.85 266.25 '388.60 502.20 612.65 Each additional 133.60 255.95 373.10 476.75 580.05 Eight yards 166.90 318.70 461.65 597.95 724.50 Each additional 159.80 304.95 441.25 570.60 690.15 C. CONTAINER SERVICE - COMPACTED STOPS PER WEEK One Two Three Four Five Six One yard 92.95 170.35 243.70 315.00 376.00 429.80 Two yards 139.70 264.10 376.00 475.65 572.85 692.25 i Three yards x78,90 334.55 471.25 589.95 720_75 807.05 Af I RESOLUTION No. 82- 9 t i F D.. DROP BOX SERVICE Regular Occasional Service Service Twenty yard box 90.95 100.00 113.35 Rental ($4.00iday after 48 hours) Thirty yard box 115.30 124.85 58.55 Rental ($5.30/day after 48 hours) III. MISCELLANEOUS RATES A. Court apartments (five or more units): F. One flight of stairs 1 stop per week 5.30 2 stops per week G. Two flights of stairs B. Extra garbage per can 2.15 H. Return for pickup of inaccessible can C. Call backs 6.65 t D. Bundles I. Extra distance - per foot after E. Boxed refuse or an the first 100 feet equivalent amount of loose refuse PASSED: This --2-3 day of Qw�,_�� , 1982. by the Council of the City of Tigard. Mayor - City of Tigard T ATTEST: City Recorder - City of, and RESOLUTION No. 82-- 96 rd�a %tXfG* ' ,'�E a,; 24, r in xi V ���'�A a�k� Loo�t�#n?,,k�Cw iji.r�-"��E.��•'w �d Rq _ -xr - F �: � t r �tk .✓'.^g1�i� i 1*-:�.. y:. �' � tk�� '`�N � � 'xM o- FRANIK'S Dap LSPpSAL SERVICE INC "� .�� 1INCREASE REQUEST 7 _ } 3 � a OITY OF 3ICrAnOy OREGON! T � p UX 4i,6 pn'l�`-G �.1' n- .s s r g *t x, ayxi tUK wi r+ F 6 t {x`"• tY+ '�" r r ,p, t ti 6. r'":: as'€•::. "n zx'n^v�e� .FE C" t "rf � :,r� rr "4x .�:-,} �x,_T,N-.t �,. ��.r s f-i '"w,x �, "** '"'�""'*r~-7 �,"�`° �, 1 x w � F n"'�*` 5-2 r�,r ® Ar p aR DISPOSAL SERVICE, INC. - P.O.Box 23293 • Tigard.Oregon 97223 • Phone 639-2114 July 26, 1982 City Council City of Tigard, Oregon SUBJECT; Proposed Service Rate Increase Gentlemen: Fran--s ^is�;osal Service, Inc. respectfully presents this service rate increase proposal to the council for its immediate consideration. The existing rate schedule for our services has been in effect for eighteen months now. r' During this period our company has experienced increased costs of operation in all phases of the disposal business, with the most acute increases being in the areas of our predominant operating expenses; specifi- cally, truck operating costs, wages and disposal fees. In addition we have been forced to rely upon outside financing to acquire and maintain the equipment necessary to meet the needs of our customers, and the current interest rates have become a significant Fart of our expenses. Unfortunate-1y, as is generally the case in an.. industry franchised by local government, our service rates have not kept pace with the continually rising costs of operation and we are forced to again seek your approval of rate increases for both residential and commercial services. We have enclosed schedules indicating the rates we are proposing for both conrnercial and residential customers. Additional financial and other information is provided to aid you in evaluating our rate increase request. Again, we regret having to seek increases of this nature, but we are confident that you understand the environment in which we are all living and working, and that you will give careful consideration to our request. Verry/truly yours, Herb Frank President "Let StWiMM0.9 Be YOW Gsh'e M Jretter#elffOPfr" L IFRANK'S DISPOSAL SERVICE, INC. S'PATEMKNT RWARDING i=HOR)S`.,L' RATS- INCREASE Frank's Disposal Service, Inc. has been operating the past eighteen months in an environment in which its operating costs have been increasing. The Company has been working to hold the line on those expenses which can be controlled, but unfortunately, the major costs of operating a disposal service are not controllable by any one company. Labor costs and disposal fees are examples of costs over which the Company exercises little control. Labor union contracts must be honored and dumpage fees must be paid to landfill operators who have little or no com- petition. There is little or no opportunity in either case to shop around ± for a better deal The Company has been working to control its other expenses while main- taining or improving the quality of the service provided to its customers. We believe that we have achieved a rneasure of success in this task in spite of the negative business environment in which we are working. In the past two years, we have been faced with the problem of replacing and enlarging the size of our fleet of trucks in order to meet expanding service demands. This task is almost completed, but at high cost in terms of borrowed funds and high interest .rates. In the eighteen months since our last rate increase we have acquired four trucks, and the funds to add these trucks were borrowed at interest rates from 16.5% to 19.6% The addition of this newer, more reliable equip- ment has resulted in fewer breakdowns and less overtime for employees. t Frank's Disposal Service, Inc. Statement regarding proposed rate increase. Page Two However, the Company is presently locked into these interest rates for a 5 year period, regardless of future interest rate movements. In addition to interest costs, the price of a new truck has increased dramatically, in spite of the current recession. The basic truck operated by the Company could be acquired new in llecember of 1980 for approximately i $32,000. The same truck today would cost $40,000 new, an increase of 25%. Frank's Disposal Service, Inc. has been able to lessen the impact of this increase by shopping for and acquiring used trucks in good condition. To accomplish this however, the management has had to shop all over the United States and travel some distance to obtain good quality equipment. In spite of the cost reductions which the Company has accomplished, significant increases in truck operating costs, disposal fees and labor costs have occurred, and because of these factors, we can no longer delay our request for an increase in rates. Fuel costs have fluctuated during the past eighteen months from a low of $1.08/ggllon for gas and $.93/gallon for diesel fuel in Llecember 1980 to a high of $1.30/gallon for gas and $1.14/gallon for diesel in October 1981, an overall increase of 21%. From October 1981 and until May 1982 fuel prices have decreased, but they have recently turned up again, and are expected to continue to increase steadily through the end of this year. In addition to the fuel costs, the cost of labor and parts for repair- pairing trucks and equipment has risen in excess of 31%, and tires cost Frank's Disposal Service, Inc. Statement regarding proposed rate increase. Z" Page Three k 21% more than eighteen months ago. By the very nature of the disposal business, truck operating expenses are a significant part of overall opera- tions, and increased costs in this area have to be passed an to customers through increases. The increases in our disposal fees and labor costs are of significance and are directly responsible for this rate increase request. The Company's disposal fees paid to the landfill have doubled in the past twelve months and additional increases are expected in the near future. As pointed out before, the rates charged us at the landfill are out of our control. and we have little choice as to where we dump the garbage. The increases we have experienced this past year are significant and we feel obligated to recover these costs through a rate increase. The labor increases are an industry-wide phenomenon — the result of collectively bargained agreements which must be honored by the Company whether or not the management feels the increases are justified. Included with the information submitted with this rate request is an analysis of the labor costs over the eighteen month period since our last rate increase. There have been two increases during this time, and we are expecting another effective January 1, 1983. Tne data supplied in the analysis represents the cost of one union employee for one full year. It should be noted that each s R Frank's Disposal Service, Inc. Statement regarding proposed rate increase. Page Four U . union employee is earning $5,761 more in wages and benefits than eighteen months ago. This increase amounts to 21.1% overall - a significant increase ®> in light of the fact that union labor accounts for almost 40% of the Company's total operating expenses. 4) We have attempted in this narrative to shed light on several major factors leading to this rate increase request. Other directly related operating expenses have not been specifically addressed, but we have 4) enclosed with this request a (quarterly Report comparing our operating costs in the Tigard Franchise area for the quarters ended December 31, 1981 and 1980. I'L should be noted that the actual amounts indicated on this report 4, represent increases in general operating costs through December 31, 1981 only, and increases since then are not reported. Thus this report tends to give a conservative picture of our operations. We are in the near future facing several additional increases, including disposal expense and a new union contract to become effective January 1, 1983. At present we have no idea of the extent of these increases nor their impact on our operations. However, we will keep the city informed of major changes. i REVISED SANITARY SERVICE QUARTERLY REPORT Franhis Disposal Service, Inc. ' a of Collector: P. 0. Box 23293 Address: Tigard, Oregon 97223 (503) 639-2114 Telephone Number: Projected Expenses (see note below) Current Period Percentage - uase Period Dec. 3J E1982g Change Quarter Ending Quarter Ending Percentage ec. 31, Change Reportable Items Dec. 31. 1980 Dec. 31, 1981 TRUCK OPERATING5% ;n*.:ease 25.886.00 EXPENSE (includes 24,777.56 25,886.4- -- the following expenses: gas and diesel, tires, main- tenance and repair, miscellaneous route expense, shop expenses) 19.14 Increase 4,297.00 - OFFICE EXPENSE 3,608.29 4,296.5-'. -------- (includes the follow- Ing expenses: printing, legal, accounting, telephone, computer services, postage and collection expense) " 30,100.86 42.64 increase 34,966.00 16.24 DISPOSAL EXPENSE 21,103.10 Total of Above 488.95 60,283.84 21,84 increase 65,149.00 6.14 Expense Categories 4_— 94 = Percentage Change 8.34_ Increase in Teamsters Contract 104 Increase Since Base Period -0- Services Provided S 9,674.00 34 decrease 9,675.00— ---�--- by Management SS 10,1)08.00 The management of the company is responsible for the general operation of the business, purchasing, personnel management, customer .serviceand customer relations, payroll administration, public relations, including reporting to and coordination with governmental agencies, development of company management policies, design of special services and develop- ment Of new business. NOTE ON PROJECTED EXPENSES: The projected expenses indicated above show the effects Ofesnovers1981nw were includ d,e ees and union wages which actually went into effect on January 1, 1982. o 0 Rs.purt Completed BY Signature of Owner or Corporate Officer 3 4 FRANK'S DISPOSAL SFRl110E, INC. Labor Cost Analysis Following is an analysis of the annual cost of one full-time garbage collec- tor. The data presented covers the period from our last rate increase rc?uest to the present time and represents the provisions of negotiated union contracts. Overall per- centage increase since last rate Effective date of union contract 1-1-80 1-1-81 1-1-82 increase request Gross wages $ 19,677 $ 22,510 $ 24,232 23.1% Payroll taxes and workmen's compensation insurance (employer's share) 4,606 4,990 4,940 7.3% Teamster pension 1,702 1,868 1,972 15.9% Teamster health and welfare 1,277 1,541 1,579 47.1% Totals $ 271262 $ 30,909 $ 33,023 21.1% FRANK'S DISPOSAL SERVICE, INC:. � PRESENT SOLID WASTE C)U,WI`ION HATES TIGARD Effective January 1, 1981 I. RESIDENTIAL RATES One Can 5.85 On Call Service $ 3.W Two Cans 11.00 Each Additional 5.20 II. MINIERCIAL RATES A. CANS STOPS PER WEEK One Two Three Four Five Six One 6.20 11,90 17.75 23.60 29.55 35.80 Two 11.60 22.05 32.90 43.85 54.75 65.655 Each Additional 4.60 9.10 13.55 18.05 22.55 27.00 B. CONTAINER SERVICE - U,X3SE STOPS PER WEEK Occas- One Iwo Three Four Five Six Tonal Container Size One yard 34.65 63.80 91.55 Each additional One and 1/4 yards 40.25 73.70 105.40 136.20 162,55 Each additional 35.60 65.20 93.40 120.65 144,00 One and 1/2 yards 45.75 88.20 125.90 159.50 192.60 Each additional 41.80 77.00 112.55 141.60 170.10 Two yards 60.35 114.10 1(32.45 205.50 247.50 Each additional 54.35 99.30 137.95 172.75 206.75 Three yards 77.30 144.55 203.60 254.90 311.40 Each additional 70.65 133.40 190.25 246.00 300.25 Four yards 94.25 175.50 255.70 325.50 389.60 Each additional 88.25 1.69.60 246.80 319.50 381.45 Five yards 109.OU 209.60 305.50 395.80 473.85 1'uAgr Each additional 105.15 198.45 288.80 375.10 455.30 Six yards 120.00 230.05 335.80 433.95 529.40 Each additional 115.45 221.15 322.40 411.95 501.23 Eight yards 144.20 275.40 398.:%0 516.70 626.05 Each additional 138.10 263.50 381.30 493.05 596.35 1 I FRANK'S DISR)SAL SrRVICE. INC. SOLID WASTE COLLECTION RATES TIGARD Page Two C. CONTAINER SERVICE - COMPACTED STOPS PEIR WEEK Occas- �.•, One Two Three Four Five Six ional One yard 80.30 147.20 210.60 272.20 324.90 371.40 Two yards 120.70 228.20 324.90 411.00 495.00 598.20 Three ,yards 154.60 289.10 407.20 509.80 622.80 697.40 D. DROP BOX SERVICE Regular Occasional Service Service Twenty yard box 78.60 86.40 97.95 Rental (83.45/day after 48 hours) Thirty yard box 99.55 107.90 50.60 Rental ($4.60/day after 48 hours) 11 III. MISCELLANEDUS RATES A. Court apartments F. One flight of stairs (five or more units): ?_ 1 stop per week 4.60 G. Two flights of stairs 2 stops per week R. Return for pickup of B. Extra garbage per can 1.85 inaccessible can C. Call backs 5.75 I. Extra distance - y per foot after D. Bundles the first 100 feet E. Boxed refuse or an equivalent amount of loose refuse 0 FRANK'S DISPOSAL SERVICE, INC. M)K)SE0 SOLID WAS'T'E CY-) a.)..L ION ugTES TIGARD .. RESIDENTIAL RATES One Can $ 6.77 On Call Service $ 3.45 TWO Cans 12.75 Eacb. Additional 6.00 II. OOMMERCIAL RATES A. CANS STOPS PER WEEK One Two Three Four Five Six } One 7.18 13.77 20.54 27.31 34.20 41.43 Two 13.42 25.52 38.07 50.75 63.36 75.97 Each Additional 5.32 10,53 15.68 20.89 26.10 31.25 8. ODNTAINER SERVICE - ILX)SE STOPS PER WEEK Occas- One TWO Three Four Five Six ional Container `- -k Size One yard 40.10 73.83 105.95 Each additional One and 1/4 yards 46.58 85.29 121.98 157.62 188.11 Each additional 41.20 75.45 108.09 139.62 166.65 One and 1/2 yards 52.94 102.07 145.70 184.58 222.89 Fach additional 48.37 89,11 130.25 163.87 196.85 Two Yards 69.84 132.04 188.00 237,82 286.42 Each additional 62.90 114.92 159.64 199.92 239.26 Three yards 89.46 167.28 235.62 294.99 360.37 Each additional 81.76 154.38 220.17 284.69 347.47 Four yards 109.07 203.11) 295.91 =176.69 450.87 Each additional 102.13 196.27 285.61 369.74 441.44 Five yards 126.14 242.56 353.54 458.04 548.37 Each additional 121.69 229.66 334.22 434.09 526.90 "? r Six Yards 138.87 266.23 388.61 502.19 612.65 Each additional 133.61 255.93 373.10 476.73 580.05 Eight yards 166.88 :318.71 461.63 597.96 724.5U Each additional 159.82 304.94 441.26 570.59 690.13 FRANK2S DISPOSAL SUNICE, ii:".. PHOPOSEO SOLID WASTE COLLECTION HATES TIGARD —,ge Two C. CONTAINER SERVICE - COMPACTED STOPS PER WEEK Occas- (---,e Two Three Four Five Six ional One yard 92.93 170.35 243.72 315.01 375.99 429.81 Two yards 139.68 264.09 375.99 475.63 572.84 692.27 Three yards 178.91 334.56 471.24 589.97 720.74 807.07 D. DROP BOX SERVICE Regular Occasional Service Service Twenty yard box 90.96 99.99 113.35 Rental ($3.99/day after 48 hours) Thirty yard box 115.32 124.8? 58.56 Rental ($5.32/day after 48 hours) III. MISCELLANEOUS RATES A. Court apartments F. One flight of stairs (five or more units). 1 stop per week 5.32 G. Two flights of stairs 2 stops per week H. Return for pickup of B. Extra garbage per can 2.14 inaccessible can C. Ca11 backs 6.65 I. Extra distance - 9! per foot after D. Bundles the first 100 feet E. Boxed refuse or an equivalent amount of loose refuse C C'