05/11/1992 - Packet AGENDA
SOLID WASTE ADVISORY COMMITTEE
MAY 11, 1992, 7:00 PM
TIGARD CIVIC CENTER - CONFERENCE ROOM(same as last month)
13125 SW HALL BLVD.
TIGARD, OR
1. CALL TO ORDER
2. ROLL CALL: Wogen_ Dispenza! Irwin
Jacobs_ McReynolds+ Sullivan
VACANT_
3. CALL TO AUDIENCE FOR NON-AGENDA ITEMS
4. APPROVE MINUTES: 4120/92
5. ADMINISTRATIVE RULES UPDATE- 92-1 - Construction Site Cleanup
6. TIGARD'S SOLID WASTE RATE STRUCTURE UPDATE
7. PRICE WATERHOUSE REPORT SYNOPSIS - Bill Martin, Washington County Haulers Assn.
8. OTHER BUSINESS
A. Next meeting - July 20th?
9. EXECUTIVE SESSION: The Solid Waste Advisory Committee will go into Executive Session under
the provisions of ORS 192.660 (1) (f) & (h) to consider records that are exempt from public
inspection and currenUpending litigation.
10. ADJOURNMENT
TO ENSURE A QUORUM TO CONDUCT BUSINESS, PLEASE CALL LIZ NEWTON AT 639-4171,
EXTENSION 308 IF YOU ARE UNABLE TO ATTEND.
le/swacagen
0
SOLID WASTE ADVISORY COMMITTEE MINUTES
APRIL 20, 1992
1. The meeting was called to order at 7.00 PM.
2. ROLL CALL: Present. Eldon Wogen, Chairman
Mark Irwin (arrived at 7.03 PM)
Don Jacobs Tom Sullivan
Gerry McReynolds
Tom Miller, Miller's Sanitary Service
Mike Leichner, Pride Disposal Company
Larry Schmidt, Schmidt's Sanitary Service
Bill Martin, Wash. County Haulers'Assn. Director
Loreen Edin, Staff Liaison
3. APPROVAL OF MINUTES: 3/16/92
A. Motion by Committee Member McReynolds, seconded by Committee Member Jacobs to approve.
Approved by unanimous vote of Committee present.
4. ADMINISTRATIVE RULES UPDATE
A. Loreen Edin advised the Committee that Administrative Rules 92-2 (Stationary Compactor Permits) and
92-3 (Annual Report Form) were effective 4/20/92 since all three haulers approved the proposed rules.
Committee Member Irwin arrived. 7.03 PM
B. Loreen reviewed the proposed rule 92-1 (Construction Site Cleanup) and noted that the haulers and the
City had reached tentative agreement after meeting with a subcommittee of the City Council. Loreen noted
that a copy had been sent to the Home Builders Association for comment.
Motion by Committee Member McReynolds, seconded by Committee Member Sullivan supporting the rule
as drafted. Approved by unanimous vote of Committee present.
5. OTHER BUSINESS
A. WASHINGTON STATE HAULERS ANNUAL REPORT.• Committee Member McReynolds noted that he was
reviewing the 82 page instruction book for Washington's annual report for solid waste haulers. He noted
that he would share a copy of the report with the City's Finance Director for use as Tigard considers
changes to the annual report in the future.
B. COOK'N IN THE PARK - City will have the "Compost Cafe" display from Washington County at the
celebration in Cook Park August 21 -23. Committee members will be asked to schedule time to assist at
the booth.
C. NEXT MEETING - Loreen noted she would be out of town on the third Monday of May. The Committee
consensus was to schedule the second ' 5111, for the next meeting, if Chairman Wogen felt a
meeting was necessary. MOVAzLie Carre-cEred
D. AOR CONFERENCE - Brochures for the Association of Oregon Recyclers ConferenCC on 5/8 were
distributed.
E. WASHINGTON COUNTY HAULERS'ASSOCIATION- It was reported that Bill Martin had been hired as
the Executive Director for the Haulers'Association.
PAGE 2 OF 2
SWAC MINUTES
APRIL 20, 1992
6. EXECUTIVE SESSION: The Solid Waste Advisory Committee went into Executive Session from 7.22 PM to 8:26
PM under the provisions of ORS 192.660(1) (f)& (h) to consider records that are exempt from public inspection and
current/pending litigation.
7. ADJOURNMENT: Motion by Committee Member McReynolds, seconded by Committee member Irwin to adjoum.
Motion approved by unanimous vote of Committee present at 8.26 PM.
le/swaar*n
IANTERBURY APARTMENTS
10700S.W. CANTERBURY LANE #H-6
OREGON 97224
4- 21 -92
Loreen Edin
P. O. Box 23397
Tigard Or . 97223
Loreen ,
I understand you are the person to contact in Tigard
about trash removal services. I am a apartment manager for
Guardian Management and we have recently taken over
management of Canterbury apartments in Tigard .
I am writing you concerning Pride disposal company. In
order to help us comply with the new laws coming into effect
for recycling in multi -family dwellings Pride has put
together an entire program for us. Unsolicited, Lenny from
Pride came to me with a plan to institute full recycling,
cut back on the number of dumpsters we have and save us
$902. a year in the process' Pride is also sharing the cost �
With! us for building new dumpster pads and enclosures'
Ultimately these measures will lead to less trash for
Pride to remove and probably a lower income for them on this
property. I am so very pleased to be working with a company
that has concerns beyond the bottom line. Lenny from Pride
disposal is one-hundred percent responsible for creating and
putting into place our "Recycling-saving "plan, I have not-,--
had
othad to do a thing.
I am sure you get letters of complaint from time to
time and I just wanted to say something positive about Lenny
and Pride, they deserve it .
Thank You for your time,
/o �� r
'-
�
'
���_
Exhibit"A"
�' •° City Of Tigard
Solid Waste Disposal Rates-July 1, 1990,
Residential Rates
e.cyc�a Or l y.00
Mini - Ca'l' $10.45
.One Can $12.60
Each Additional $12.60
On Call Service $5.53 7
Commercial Rates
One 'r.. I r:.._
rvm i 001 17 491
One Can $13.10
Each Additional $13.10 98.
Container Service-Loose
One Two Three Four Five
Container Size
Roll out can $24.08 $45.75 $66.77
(60 gallon)
One Yard 74.10 140.89 205.69
Each Additional
One And 1/4 88.57 167.95 245.01 $320.78 $390.66
Each Additional 82.27 156.45 228.81 299.78 365.66
One And 1/2 102.85 201.09 293.15 379.54 465.24
Each Additional 97.45 186.09 275.15 355.38 434.94
Two yards $136.19 263.49 383.48 $496.37 607.77
Each Additional 128.09 243.49 350.48 452.17 552.87
Three Yards 249.37 359.38 521.17 672.67 830.95
Each Additional 177.49 344.38 503.27 660.66 815.95
Four Yards 236.68 455.88 673.66 877.44 1,073.44
Each Additional 240.68 447.88 661.66 869.34 1,062.54
Five Yards 283.98 556.99 823.05 1,081.83 1,324.12
Each Additional 278.78 541.67 800.55 1,053.93 1,309.12
Six Yards 326.18 639.16 946.14 1,242.92 1,536.10
Each Additional 320.08 627.16 928.04 1,213.32 1,498.10
Eight Yards 413.77. 809.85 1,195.72 1,573.79 1,940.47
Each Additional 405.50 793.85 1,171.92 1,541.89 1,900.47
' Container Service-Compacted
• On Two Three . Four Five
Container Size
One Yard $177.34 $336.63 $491.19 $643.35 $783.52
Two Yards 300.92 584.06 852.58 1,106.90 1,358.34
Three Yards 415.65 804.29 1,170.87 1,516.35 1,876.06
-Loose
Drop Box Service 4
/0 �s yd , 130)( /4 fl
m=w
Box Size Regular Service Occasional Service
Twenty Yard Box Charge 88.80 99.40
Demurrage 4.70 4.70
+ Disposal Fee + Disposal Fee
+ Franchise Fee + Franchise Fee
Thirty Yard Box Charge 108.70 119.80
Demurrage 6.20 6.20
+ Disposal Fee + Disposal Fee
+ Franchise Fee + Franchise Fee
Drop Box Service-Compacted
Under 20 Yds $102.00 MWgww*ai,Disposal fee +Franchise Fee
20 yards 106.80 46 660� Disposal Fee+ Franchise Fee
30 yards 140.65 E4! ij.r Disposal Fee+ Franchise Fee
40 yards 161.45 0 Disposal Fee+ Franchise Fee
Misc Rates
Co Apartm s Rate
5or reu
One stop r week
Two st s r week 1 0
Three tops r week 2 00
Four tops per eek 0
Fiv stops per w k 0. 0
Extra Garbage per Can 4#- 3.43
Call Backs * 8.25
Bundles, boxed refuse,
or bags equiv amt of
one can WIWI#
Return for pickup of
inaccessible can •9!�P�
Extra distance SO
per foot after first 499 ft 0.01
Account Reinstatement Fee 10.00
r
EXECUTIVE SUMMARY
Price Waterhouse was retained by the Washington County Haulers Association to organize hauler prepared
financial information in a uniform and consistent manner and to develop a rate structure based on financial
reality rather than historic adjustments.
To determine fair and reasonable methods of defining income statement accounts and allocating those
accounts to specific service types and franchise areas, Price Waterhouse consulted with representatives
from the Washington County Haulers Association (WCHA) and the Washington County Department of
Health and Human Services. Prior to collection of the information, all parties agreed, in principle, on the
account definitions and the methods of allocating amounts to specific service types and the Washington
County Franchise Area.
.. The financial results of solid waste collection and recycling operations for the calendar years 1990 and 1991
are presented at Exhibit 4. The financial results show the following:
-% • The existing rate structure provided insufficient revenue to meet the costs of providing service to
residential and medical waste customers.
• The existing rate structure provided sufficient revenues to meet the costs of providing service to drop box
customers.
• The existing rate structure provided revenues in excess of the amount required to provide service to
commercial customers.
Increases in service level requirements, (particularly recycling activities): and disposal rates will cause the
cost of providing service to Washington County residents to rise sharply in 1992. Historical information
obtained from jurisdictions around the Portland Metropolitan Area that have already increased service
levels support these claims.
Proposed rates were developed based on 1991 financial results and expected increases in costs. The
rates reflect the WCHA goal of gradually minimizing the subsidization of residential service with commercial
r revenues. We suggest the base residential rate of $12.47 be increased to $15.58. The haulers propose
adjusting commercial rates only enough to compensate for the increases in disposal fees. The new
residential rates still reflect some degree of subsidization while Drop Box services are self sufficient. This
,,. gradually reduces the revenue surplus from commercial service and moves the residential and commercial
rate structure in a direction which more closely represents the cost of ser,/ice.
1
City of Tigard Franchised Haulers
1991 Operating Margin Comparision
City of Unincorporated
Income/Revenue Tigard Wash. Co.
Drop Box -3.18% 10.81%
Residential 13.37% 3.00%
Residential Recycle -599.10% -626.00%
Net Residential -2.68% -9.76%
Commercial 35.49% 35.00%
Commercial Recycle -220.93% -287.00%
Net Commercial 27.11% 32.04%
Medical Waste -20.20% -77.62%
Yard Debris -84.33% NA
Net Total 9.16% 5.59%
Net Total
❑ Washington Co. Yard WE
City of Tigard Medical
Net Commercial
-----------------
Commercial
Net Residential
„<
Residential
Drop Box
-700.00 -600.00 -500.00 -400.00 -300.00 -200.00 -100.00 0.00% 100.00
Calculation of Revenue Requirements Based on
Proposed Rate Structure, Increased Costs, and Increased Service Levels
Required Increase to obtain Assumed Returns:
Increase in Residential Rafts 24.92%
Increase In Drop Box Rates 13.26%
Increase in Commercial Rate 6.41%
Increase in Medical Waste Rates 115.38%
Assumptions Used:
Increase in Disposal Fees 25.00%
Increase in Recycling Expense 35.00%
Increase in Disposal Fees(Residential) 12.50%
Increase in All Other Expenses(CPI) 5.10%
Decrease in Waste Volume -12.50%
Operating Margin(Commercial) 12.00%
Operating Margin(Residential) 10.00%
Operating Margin IOther) 10.00%
Medical
Drop Box Residential Commercial Waste Total
"— Sales A $2,017,293 $7,799,086 $3,919,668 $67,510 $13,803,557
Franchise Fees B (60,519) (233,973) (117,590) (2,025) (414,107)
Disposal Fees C (769,275) (2,020,649) (916,175) (4,785) (3,710,884)
i
Price Increase in Disposal Fees D 1192,319) (505,162) (229,044) (1,196) (927,721)
Decrease in Waste Volume E 252,581
Recycling Expense F (885,253) (885,253)
Increase in Recycling Expense G (309,838) (309,838)
All Other Expenses H (849,170) (3,760,058) (1,476,171) (50,191) (6,135,590)
Increase in AN Other Expenses 1 (43,325) (191,840) (75,315) (2,561) (313,0401
Total Expenses (1.914,60 81 (7.654.192) (2.814.294) 160.758) (12.696.432)
Net Income J 374
Operating Margin K 10.00% 1.86% 28.20% 10-00% 10.59%
Net Income to make assumed marg L $102.685 $779.909 $470.360 $6.751 $1,359.705
Overage/(Shortfall) M (635,014) 635,014 0
Subsidy N 635,014 (635,014) 0
Net Incomeafter:Subsidy O $470,360 $6,751 $1,359,705
Operating Margin after Subsidy P 10.00% 10.00% 12.00% 10.00% 10.59%
A-Sales = Actual Sales X Assumed Increase
B-Franchise Fees = 3%X Sales
C-Disposal Fees from Exhibit 7-A
D-Increase in Disposal Fees = Disposal Fee X Assumed Increase
E-Decrease in Waste Volume = Actual Disposal Fees X Assumed Decrease
F-Recycling Expense from Exhibit 7-A
G-Increase in Recycling Expense = Actual Recycling X Assumed Increase
H-All Other Expenses from Exhibit 7-A
1-Increase in AN Other Expenses = All Other Expenses X Assumed Increase
J- Net Income = Sales-Total Expenses
K-Operating Margin = Net Income/Saba. Except Drop Box operating margin =
Net IncomeASales loss Disposal Fees)
L-Net Income to make assumed margin = Sales X 10%. Except Drop
Box = (Sales-Disposal Fees)X 10%.
M-(Net Income-Calculated Net Income)
N-Subsidy is the amount of earnings to be allocated from Commerical to Residential
without eroding the assumed return for Commerical.
O-Net income after Sudsidy = Net Income + Subsidy
P-Operating margin after subsidy = Net Income after Subsidy/Sales. Except
Drop Box = Net Income after Subsidy/Sales-Disposal Fees
All calculations based on financial information provided by WCHA.
EXHIBIT 7-C
ai
Break Down of the Weekly Rate: 20 gallon 32 gallon 60 gallon 90 aallon
Existing rate A N/A $12.47 $19.02 $23.20
Percentage increase required to break-even B N/A 22.53% 22.53% 22.53%
Break Even Rate C $13.94 $15.28 $23.30 $28.43
Percentage increase for stated Margin D N/A 36.61% 36.61% 36.61%
Rate Necessary for Stated Margin E $15.54 $17.04 $25.98 $31.69
W
Break Even Rate Components
Franchise Fee F $0.42 $0.46 $0.70 $0.85
Recycling Expense G $2.39 $2.39 $2.39 $2.39
WIN Disposal Expense(2) H $3.57 $4.87 $9.26 $12.34
Cart Amortization Expense 1 $1.38 $1.38
Collection Expense(3) J $7.56 $7.56 $7.56 $7.56
Identified Waste Disincentive K $2.02 $3.90
ar
Break Even Rate $13.94 $15.28 $23.30 $28.43
Rate Components with Margin
Franchise Fee L $0.47 $0.51 $0.78 $0.95
Eli Recycling Charge M $2.66 $2.66 $2.66 $2.66
Disposal Charge N $3.98 $5.43 $10.32 $13.76
Cart Amortization Charge 0 $1.54 $1.54
Collection Charge P $8.43 $8.43 $8.43 $8.43
as Identified Waste Disincentive Q $2.25 $4.35
New Rate with Margin $15.54 $17.04 $25.98 $31.69
.r
Subsidy From Commercial R ($1.29) ($1.41) ($2.16) ($2.63)
Franchise Fee Addition/(Reduction) S ($0.04) ($0.04) ($0.07) ($0.08)
ai New Rate Less Subsidy 4 515.58 .E $28.98
Curbside Discount Offered T ($0.97) ($0.97)
Franchise Fee Addition/(Reduction) U ($0.03) ($0.03)
ar
New Rate with Curbside Discount 13.21 $14.58
rr A-A base rate of $12.47 for a 32 gallon can was used.
However,there are higher rates being charged for this service in various franchise areas
in the county.(See Exhibit 1)
B-[(Break Even Rate-Existing Rate) /Existing Rate]
C- 20 gal.calculated below in "break even rate components";32 gal. from Exhibit 7-13;
60 & 90 gal. _ (Existing rates X 1 + %increase required for break even)
D -[(Rate Necessary for Stated Margin -Existing Rate)/Existing Rate]
E-20 gal. calculated below in "rate components with Return";32 gal. from Exhibit 7-B;
60 & 90 gal. _ (Existing rates X 1 + % increase required for stated return)
s. F-3%X the Break Even Rate
G -Recycling Expense/Sales X Break Even Rate for Residential
(H) -((30 lbs.per 32 gal.can ' 4.33)/2000) • $75 per ton
((57 lbs. per 60 gal. can • 4.33)/2000) ' $75 per ton
s ((76 lbs.per 90 gal.can • 4.33)/2000) • $75 per ton
((22 lbs.per 20 gal. can • 4.33)/2000) • $75 per ton
._ I -See Exhibit 74
J -[Break Even Rate-(Franchise Fee + Recycling Expense + Disposal Expense + Cart Amortization)]
no K-Collection Expense for 60 & 90 gal.less Collection Expense for 32 gal.
L-(Break Even Franchise Fee/Break Even Rate)X Rate for Required Margin
M - (Break Even Recycling/Break Even Rate)X Rate for Required Margin
N - (Break Even Disposal/Break Even Rate) X Rate for Required Margin
ass 0 -(Break Even Cart Amortization/Break Even Rate)X Rate for Required Margin
P- (Break Even Collection Charge/Break Even Rate)X Rate for Required Margin
Q-Collection Expense for 60 & 90 gal. less Collection Expense for 32 gal.
R- Commerical Subsidy + Difference of return on Residential Sales on Exhibit 7-C and 7-B.
S -3%X Subsidy from Commercial
T -Assumed
U -3%X Curbside Discount
All calculations based on financial information provided by WCHA.
EXHIBIT 7-D
J
L ' SPECIAL SERVICE RATES
ICurbside Discount ($1.00)
} Weekly Recycling Only Service $4.00
' (Urban Customers Only)
Will Call Charge $7.60
Call Backs $12.45
Occasional Extra CanBag Charge $5.50
i
NSF Charge $16.50
Re-Start Service Fee $10.00
Charge for distance greater than of 50 ft., $3.00
but less than 300 ft.
J` Charge in excess of 300 ft. $65 PER HR.
I.-
Unscheduled Services $65 PER HR. PLUS DISPOSAL FEE
LyTires $65 PER HR. PLUS DISPOSAL FEE
White Goods $65 PER HR. PLUS DISPOSAL FEE
(Containing No Hazardous Materials)
L
L
L
L
L
L
L
L
LAll calculations based on financial information provided by WCHA.
3
COMMERCIAL RATES
J
Disposal
Existing Increase Proposed
BALD Pass-Thuah BALU
1 Yard $73.92 $4.74 $78.66
Saturday $81.49 $5.22 $86.71
1.5 Yard $101.29 $6.49 $107.78
Saturday $110.67 $7.09 $117.76
2 Yard $133.73 $8.57 $142.30
Saturday $146.09 $9.36 $155.45
3 Yard $171.85 $11.02 $182.87
Saturday $187.25 $12.00 $199.25
4 Yard $226.61 $14.53 $241.14
Saturday $245.41 $15.73 $261.14
5 Yard $273.86 $17.56 $291.42
Saturday $291.57 $18.69 $310.26
6 Yard $307.70 $19.72 $327.42
Saturday $331.13 $21.23 $352.36
i
---� 8 Yard $388.74 $24.92 $413.66
Saturday $416.71 $26.71 $443.42
Compacted rate is 2.5 times the regular rate. Note: Compacted containers must be
4 yards or less in size and weigh less than 500 pounds per yard.
Increase due to disposal fee pass through 6.41%
All calculations based on financial information provided by WCHA.
5
DROP BOX RATES
A
Existing Proposed Rates
$egg Increase Disposal Fees
Non-Compacted
10 Yard $92.29 $12.24 $104.53
20 Yard $93.88 $12.45 $106.33
30 Yard $129.47 $17.17 $146.64
Compacted
10 Yard $110.73 $14.69 $125.42
20 Yard $115.93 $15.38 $131.31
30 Yard $152.70 $20.25 $172.95
Exchange Service
10 Yard B $86.37 $11.46 $97.83
20 Yard $85.39 $11.32 $96.71
30 Yard $121.08 $16.06 $137.14
Mileage charge in excess
of 12 miles. $1.10 $0.15 $1.25
Demurrage, rates per day for up to a:
20 Yard Container $4.32 $0.57 $4.89
30 Yard container $5.67 $0.75 $6.42
Drops boxes with lids, and or locks,
and where the customer requires Same rate as a compacted drop box rate
the same box (round trip).
Weekend service available for 1.5 times the above rates and shall be arranged with the hauler prior to service.
A - Current rates do not allow haulers to recapture the franchise fees paid on disposal fees.
B - Calculated using the ratio of 10 yard non-compacted to the 20 yard non-compacted
rates X the existing 20 yard exchange service rate of $85.37.
Increase necessary to continue operating margin 13.26%
All calculations based on financial information provided by WCHA.
4
CITY OF TIGARD MEDICAL WASTE SERVICES RATE REQUEST
Small Large
Generator Generator
Sharps Containers
(includes collection and disposal)
1 Quart $ 9.00 $ 9.00
4 Quart $ 12.00 $12.00
8 Quart $ 14.00 $14.00
20 Quart $ 17.00 $17.00
Sharps Containers - Containers Only
1 Quart $ 3.50
4 Quart $ 4.50
8 Quart $ 8.50
20 Quart $ 15.00
Sharps Containers - Disposal Only
1 Quart $ 7.00
4 Quart $ 9.75
8 Quart $ 12.00
20 Quart $ 15.00
Box Containers
(including collection and disposal)
10 Gallon Box $ 15.00
20 Gallon Box $ 16.70 $15.00
35 Gallon Box $21 .00 $17.00
Other Services
Locking outside storage container $ 18.00 per month
Will call service (48 hr. notification) $ 5.00 per pickup
Tape gun (with 2 rolls tape) $ 12.95 each
Additional rolls of tape $ 2.00 each
5 gal. bag $ .60 each
20 gal. bag $ .70 each
40 gal. bag $ .90 each
Residential customers (minimum charge) $ 12.00
Large customer: 4 or more boxes per week