BROWNING-FERRIS INDUSTRIES: REQUEST FOR RATE INCREASE BASED ON CPI INCREASE (TRANSPORTATION GROUP INDEX) OF 4.02%

EFFECTIVE JULY 1, 2000

 

Recommendation:

That the City Council adopt a resolution approving a 4.02% rate increase for solid waste and recycling to residential and commercial accounts effective July 1, 2000 based on the change in the Transportation Group Index as set forth in the contract with Browning-Ferris Industries.

 

Background:

The contract between the City and BFI provides for annual adjustments based on changes in the Consumer Price Index, Transportation Group. BFI has submitted a request for this adjustment in accordance with the contract (a copy of the contract section is attached). The change in the CPI, Transportation Group, for the period April 1999 - April 2000 is 4.02% (the CPI, Transportation Group Index is also attached). The last rate increase BFI received was 2.09% in July 1996.

 

Analysis:

This proposed adjustment will result in a 41¢ increase in the cost for each residential customer. Commercial rates will also increase at the same rate of 4.02%. If the proposed increase is granted as submitted, the monthly rates would be as follows:

TYPE OF SERVICE	PRESENT RATES	PROPOSED RATES	INCREASE
SFD SOLID WASTE	$8.99	$9.35	$.36
SFD RECYCLING	$1.31	$1.36	$.05
MFD RECYCLING OVER 5 UNITS	$1.99	$2.07	$.08
COMMERCIAL 3 YARD/1 X WK	74.12	77.10	$2.98

 

For comparison purposes, the rates for our neighboring cities are provided below:

	MANHATTAN BEACH	REDONDO BEACH	TORRANCE	PROPOSED HERMOSA BEACH
SFD PER MONTH	$10.93	$10.50	$13.50	$10.96

As an aside, this is the last year of the BFI contract. Staff will be developing an RFP this fall to competitively bid this contract.

 

 

RESOLUTION NO. 00-             

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING A 4.02% REFUSE RATE INCREASE AND A 4.02% RECYCLING RATE INCREASE EFFECTIVE JULY 1, 2000.

 

WHEREAS, the City Council entered into an agreement with Browning-Ferris Industries on June 27, 1989 to provide refuse service; and,

WHEREAS, said agreement was amended on March 12, 1991 to add provisions for recycling; and,

WHEREAS, said agreement provides for annual rate adjustments in accordance with the Consumer Price Index, Transportation Group, for the Los Angeles-Anaheim-Riverside area; and,

WHEREAS, the consumer price index, transportation group, for the Los Angeles-Anaheim-Riverside area increased 4.02% from April 1999 through April 2000;

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY OF HERMOSA BEACH DOES HEREBY APPROVE A 4.02% REFUSE RATE INCREASE AND A 4.02% RECYCLING RATE INCREASE EFFECTIVE JULY 1, 2000 AS EVIDENCED BY THE ATTACHED EXHIBIT "A".

PASSED, APPROVED AND ADOPTED this 13th day of June, 2000.

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