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Agenda Packets - Board - 2001-08-14MP02 -010 CITY OF COSTA MESA DEPARTMENT OF FINANCE RC R. PUCKETT INTEROFFICE MEMORANDUM DIREC OR OF FINANCE 1: TO: SANITARY DISTRICT BOARD OF DIRECTORS FROM: MARC R. PUCKETT, DISTRICT TREASURER . COPY TO: DISTRICT STAFF DATE: AUGUST 13, 2001 SUBJECT: 2001 -2002 PROJECTED LIQUID AND SOLID WASTE CHARGES. FOR BOARD MEETING OF AUGUST 14, 2001 Please find attached the Engineer's report for proposed 2001 -2002 liquid waste collection charges and the rate calculation for proposed 2001 -2002 solid waste collection charges, based upon the most current occupancy report dated August 1.3, 2001 (copy attached). These documents will presented to you by the District Manager at your August 14, 2001, board meeting. If you have any questions or need additional information, do not hesitate to contact me directly. MARCIR.PUCKETT District Treasurer Attachments Total Flow 8836 Total Funds to be Collected: Funds to be collected per category: Existing Units/ Square Feet Units: 2,559;; Square Feet: Use Type Flow Total Flow Costa Mesa Sanitary District Total Funds Low 2280 / ENGINEER'S REPORT 25.804% x $ LIQUID WASTE COLLECTION CHARGES 2000/01: 2812 / 8836 = 31.824% x $ 1,502,745 = $ 478,234 Acres 1679 / 8836 = Category Flow Ratio Developed Industrial 1936 / - Low 1440 1.00 2280 = $ 329,251 Other Medium 1775 1.23 1018 1,502,745 = $ 21,940 High/Trailers 3125 2.17 719 Commercial 2500 1.74 965 Industrial 3000 2.08 931 Other 200 0.14 920 Low $ 387,768 / 16,490 = $ 23.52 Flow /Acre Low 25,559 1.00 x 2280 = 2280.00 2280 Medium $ 285,552 / ( 1.23 x 1018 = 1252.14 11.51 High/Trailers Industrial 2.17 x 719 = 1560.23 2812 Commercial 1.74 x 965 = 1679.10 1679 Industrial 80.85 2.08 x 931 = 1936.48 1936 Other 0.14 x 920 = 128.80 129 Total Flow 8836 Total Funds to be Collected: Funds to be collected per category: Existing Units/ Square Feet Units: 2,559;; Square Feet: Use Type Flow Total Flow Total Funds Low 2280 / 8836 = 25.804% x $ 1,502,745 = $ 387,768 Medium /High 2812 / 8836 = 31.824% x $ 1,502,745 = $ 478,234 Commercial 1679 / 8836 = 19.002% x $ 1,502,745 = $ 285,552 Industrial 1936 / 8836 = 21.910 6.6 x $ 1,502,745 = $ 329,251 Other 129 / 8836 = 1.460% x $ 1,502,745 = $ 21,940 8836 100.000% $1,502,745 OPTION 1: Use Type Low $ 387,768 / 16,490 = $ 23.52 Medium /High $ 478,234 / 25,559 = $ 18.71 Commercial $ 285,552 / ( 24,813,219 / 1000 sq ft) = $ 11.51 Industrial $ 329,251 / ( 8,726,720 / 1000 sq ft) = $ 37.73 Other $ 21,940 / ( 271,382 / 1000 sq ft) = $ 80.85 $ 1,502,745 OPTION 2: Use Type Low $ 379,599.80 = 16,490 x $ 23.02 Medium /High $ 452,905.48 = 25,559 x $ 17.72 Commercial $ 332,249.00 = ( 24,813,219 / 1000 sq ft) x $ 13.39 Industrial $ 344,181.84 = ( 8,726,720 / 1000 sq ft) x $ 39.44 Other $ 3,221.30 = ( 271,382 / 1000 sq ft) x $ 11.87 $ 1,512,157.42 Over(Under) $ 9,412.42 OPTION 3: ype (5% increase) Low $ 398,563.30 = 16,490 x $ 24.17 Medium /High $ 475,652.99 = 25,559 x $ 18.61 Commercial $ 348,873.86 = ( 24,813,219 / 1000 sq ft) x $ 14.06 Industrial $ 361,373.48 = ( 8,726,720 / 1000 sq ft) x $ 41.41 Other $ 3,381.42 = ( 271,382 / 1000 sq ft) x $ 12.46 $ 1,587,845.05 Units Serviced Annual Charge Funds to be Collected SOLID WASTE COLLECTION CHARGES 20,985 @ $ 184.62 \ 8113/01 C: \MYDOCS2\ASSESSMENTS\CMSD Rate Calc Engineer's Reportt 8- 10- 00.xls SOLID WASTE Operating Costs - Sanitation Dept. COSTA MESA SANITARY DISTRICT 130,568 184,637 Trash Hauler Contract RATE CALCULATION 1.515.956 2.076,482 - SOLID WASTE COLLECTION 16,768 30.000 Recycling Contract FISCAL YEAR COMPARISON 1.231,620 1.706,130 Sharps Program 10 MOS ACTUAL 2,697 3.500 FY 00/01 FY 00/01 FY 01102 REVENUES: Telephone Book Recycling Program 11.000 14,443 Projected Solid Waste Charge 2000 -01 3.718.167 3.287,164 3.874.265 Taxes 62.100 51,890 128.950 Interest Earnings 231,200 86.420 135,000 Other Revenue 30.742 46.668 28.950 TOTAL REVENUES 4.042.209 3.472.141 4,167,165 EXPENDITURES: District Management 20,000 13,293 Operating Costs - Sanitation Dept. 132.240 130,568 184,637 Trash Hauler Contract 2,026,679 1.515.956 2.076,482 Contract Code Enforcement 20,000 16,768 30.000 Recycling Contract 1.663,296 1.231,620 1.706,130 Sharps Program 6.000 2,697 3.500 Household Hazardous Waste Program 20,000 18,634 21.000 Telephone Book Recycling Program 11.000 14,443 15,000 Beverage Container Purchase Program 928 1.150 0 Large Item Pick -Up 7,000 7,457 8.000 Increase For Facility Acquisition Direct Costs Subtotal 3.887.143 2.939.293 4.044.749 District Management 20,000 13,293 20.000 Board Members Meetings 10.000 8,895 17,500 Insurance 18.480 10,780 18,841 Memberships 2,250 1,952 7.875 Miscellaneous expense 2.625 160 2.750 Professional Svcs -Attny 22.500 8.900 25,000 Professional Svcs, 9,000 5.184 10,000 Auditing Svcs 2,275 1.750 2.300 Travel & Meetings 5.250 2,387 5,500 Public Education 4.750 3.567 4,750 Election Expenses 10,000 9.841 0 Transcription Services 4.000 1.873 4.400 Strategic Plan 5.000 2.265 2.500 Other Operating Costs 0 0 0 Non - Operating Exp - Other 1.000 302 1.000 Debt Serjice 0 0 284.251 Indirect Costs Subtotal 117.130 71,148 406.667 TOTAL EXPENDITURES 4.004,273 3.010.441 4.451.416 EXCESS (DEFICIENCY) OF REVENUES OVER 37.936 461.700 (284.251) EXPENDITURES Funds Required Occupancy Rate 2001 -2002 PRELIMINARY PROJECTED SOLID WASTE CHARGES: 3,874,265 20.985 18.1 62 5.8 Increase 2000 -01 Solid Waste CHARGES: 3.691,722 21.156 174.50 (1) Fully Burdened Rate 4.158.516 20.985 198 17 13 6`i 5 TRASHRATE BRDWN Formulas: Hauler- Divide the new Trash Hauler Contract rate by total occupancy =Year amount Divide the year total 12 =Month amount Recycler- two ways to get this total A. Divide the base rate from the CR Transfer rate by total occupancy. B. Divide the total budget(CR Transfer) by the total occupancy. Divide the transfer rate into the base rate and multiply that % by the outcome of the first action. The other half of the % multiply by the outcome of the first ----- action.This will provide the answer to the Recycler and the Landfill. Landfill -CR Transfer and take the outcome from multiplying the landfill fee by 11 (landfill fee X 50 %= and this total divide by the total occupancy. Administrative= is what's leftover. 6 COSTA MESA SANITARY DISTRICT TRASH RATE BREAKDOWN Fiscal Year 2001 -2002 S 184.62/YEAR S 15.39 /MONTH 98.95 Hauler 8.25 62.62 Recycler 5.22 18.68 Landfill 1.56 4.37 Administrative 0.36 Formulas: Hauler- Divide the new Trash Hauler Contract rate by total occupancy =Year amount Divide the year total 12 =Month amount Recycler- two ways to get this total A. Divide the base rate from the CR Transfer rate by total occupancy. B. Divide the total budget(CR Transfer) by the total occupancy. Divide the transfer rate into the base rate and multiply that % by the outcome of the first action. The other half of the % multiply by the outcome of the first ----- action.This will provide the answer to the Recycler and the Landfill. Landfill -CR Transfer and take the outcome from multiplying the landfill fee by 11 (landfill fee X 50 %= and this total divide by the total occupancy. Administrative= is what's leftover. 6 LIQUID WASTE COSTA MESA SANITARY DISTRICT RATE CALCULATION LIQUID WASTE COLLECTION FISCAL YEAR COMPARISON District Management 20.000 10 N10S ACTUAL 20,000 Board Members Meetings FY 00/01 FY 00%01 FY 01102 REVENUES: 18,480 10.780 18.841 Projected Liquid Charge 2000 -01 1,487.866 1,273.985 1,502,745 Interest Earnings 108,800 261,242 205.000 Taxes 62.100 51,890 0 Other Revenue 29.414 129,301 32.550 TOTAL REVENUES 1.688,180 1,716,417 1.740,295 EXPENDITURES: 5.250 2,622 5,500 Operating Costs - Sanitation Dept. City Budget 824,370 748.014 857,603 Contract Code Enforcement 0 0 8,000 Repair & Maintenance 30,000 4,922 30,000 District Engineer - Retainer 13,200 13.200 14.400 District Engineer - Engineering Services 105.000 71,728 120,000 Increase for Facility Acquisition 0 0 0 Capital Improvement Projects 0 0 0 Direct Costs Subtotal 972.570 837,864 1,030.003 District Management 20.000 13,293 20,000 Board Members Meetings 10.000 8.540 17,500 Insurance 18,480 10.780 18.841 Dues - Memberships 2.250 1,952 7,875 Miscellaneous expense- Community Promotion 2.625 615 2,750 Professional Svcs -Attny 22.500 8,900 25.000 Professional Svcs 9,000 5,185 10,000 Auditing Services 2.275 1,750 2,300 Travel & Meetings 5.250 2,622 5,500 Public Education 4,750 2,034 4,750 Election Expenses (Legal Notices) 10.000 9.841 0 Strategic Plan 5,000 2,265 2.500 Transcription Services 4.000 1,873 4,400 Other Operating Exp 0 1.802 0 Non - Operating Exp - Other(Contributions) 1,000 76 1.000 Indirect Costs Subtotal 117,130 71,527 122,416 TOTAL EXPENDITURES 1.089,700 909,391 1,152,419 EXCESS(DEFICIENCY) OF REVENUE 598,480 807,027 587,876 OVER EXPENDITURES FROM OPERATONS 2001 -2002 PRELIMINARY PROJECTED SEWER CHARGES: RATE ASSMT UNIT Single Family 23.25 Dwelling Multi /Mobile Homes 17.90 Dwelling Commercial 13.52 1.000 sq ft. Industrial 39.83 1.000 sq, ft. Other 11.99 '1.000 sq ft. 'Projected 191. Increase 2000 -01 SEWER CHARGES: Single Family 23.02 Dwelling MultilMobile Homes 17 72 Dwelling Commercial 13,39 11.000 sq. ft. Industrial 39.4.1 1 .000 sq. ft Other 11.87 1.000 sq. ft. 7 Trashrate COSTA MESA DISPOSAL Rate Calculation CONSUMER PRICE INDEX(LOS ANGELES /RIVERSIDE, ORANGE AREA) INCREASE Index as of May. 2000 171.1 Index as of April, 2001 176.6 Occupancy as of May, 2001 20,985 (occupancy total per Tom) Percentage increase (176.6- 171.1)/171.1 =3.21 Maximum increase 3% Basic Rate Calculation Last Year's Basic Rate (Sec. IV)= 7.9787 per occupancy New Basic Rate = 7:9787x3.00% 0.2394 Effective July 1, 2001, the rate shall be: 8.2181 2,019,551.76 8.2181X20,985X12= 2,069,481.94 Large Item Pickup Landfill Charges + 7,000.00 S 2,076,481.94 Budget Amount S 2,076,482 8 NOTICE OF PUBLIC HEARING Please be advised that a public hearing will be held by the Costa Mesa Sanitary District on August 14, 2001, at 6:00 p.m, in the City of Costa Mesa Council Chambers, 77 Fair Drive, Costa Mesa, California, to consider any protests to the proposed increase of the Sanitary District's sewer collection and trash collection rates charged at your property. All residences and businesses within the District receive sewer service from the District, while the District collects trash only from residences utilizing curbside service (NOT bin or dumpster service). BASIS AND REASON FOR INCREASE The present sewer collection and trash collection rates need to be increased to cover the annual CPI, inflation, and rising energy costs associated with each program. The sewer collection rates have not increased in eight (8) years and none of the proposed trash collection increase is associated with providing each residence with standardized trash containers. The containers are being provided at no charge. l The existing and proposed yearly rates are as follows: AY i EXISTING PROPOSED SFR S 23.02 S24.17 MFR S 17.72 S 18.61 Comm. 513.3911000 sf S 14.06/1000 sf Ind. S 39.4411000 sf $ 41.4111000 sf Other S 11.8711000 sf S 12.4611000 sf EXISTING PROPOSED $ 174.50 $ 184.62 FOR FURTHER INFORMATION, PLEASE CONTACT THE ASSISTANT MANAGER AT (714) 754 -5043 OCCUPANT EXEMPT CODE CLASS C - Commercial C2 D2 N2 GROUP TOTAI. = E - Exempt C2 C3 D3 N2 N3 VL GROUP TOTAL = 1 - Industrial C2 C3 GROUP TOTAL = N11 - Multiple Fancily Dwelling CITY OF COSTA MESA August 13, 2001 OCCUPANT CODE /EXEMPT CLASS REPORT SD occp_code_grand_total.rpt SANITARY DISTRICT SYSTEM NO. OF PICK -UP TRASII BUILDING SEWER PARCEL UNIT ASSESSMENT AREA ASSESSMENT 1,431 0.00 $0.00 24,303,029.00 $341,700.59 29 0.00 $0.00 418,658.00 $5,886.33 4 0.00 $0.00 91,532.00 $1,286.94 1,464 0.00 $0.00 24,813,219.00 $348,873.86 243 0.00 $0.00 24,342.00 $303.30 708 0.00 $0.00 53,450.00 $0.00 19 0.00 $0:00 0.00 $0.00 87 0.00 $0.00 193,590.00 $2,412.13 1 0.00 $0.00 0.00 $0.00 3 9.00 $0.00 0.00 $0.00 1,061 9.00 $0.00 271,382.00 $2,715.43 758 0.00 $0.00 8,710,970.00 $360,721.27 2 0.00 $0.00 15,750.00 $0.00 760 0.00 $0.00 8,726,720.00 $360,721.27 CITY OF COSTA MESA OCCUPANT CODE /EXEMPT CLASS REPORT SANITARY DISTRICT SYSTEM August 13, 2001 SD_occp_codc_grand_total.rpt OCCUPAN'r EXEMPT NO. OF PICK -UP TRASH BUILDING SEWER CODE CLASS PARCEL UNIT ASSESSMENT AREA ASSESSMENT 1,989 4,930.00 $910,176.60 0.00 $91,747.30 1 4.00 $738.48 0.00 $74.44 C 1 184 506.00 $93,417.72 0.00 $9,416.66 C2 3,187 18,540.00 $0.00 7,862.00 $345,029.41 C3 1 296.00 $0.00 0.00 $0.00 DI 112 287.00 $52,985.94 0.00 $5,341.07 D2 126 818.00 $0.00 0.00 $15,222.98 N2 68 120.00 $0.00 0.00 $2,233.20 GROUP TOTAL = 5,668 25,501.00 $1,057,318:74 7,862.00 $469,065.06 S - Single Family Dwelling 14,091 14,091.00 $2,601,480.42 0.00 $340,579.47 1 1.00 $184.62 0.00 $24.17 C 1 258 262.00 $48,370.44 0.00 $6,332.54 C2 789 789.00 $0.00 0.00 $19,070.13 D1 848 850.00 $156,927.00 0.00 $20,544.50 D2 13 13.00 $0.00 0.00 $314.21 N2 490 490.00 $0.00 0.00 $11,843.30 2 CITY OF COSTA MESA OCCUPANT CODE /EXEMPT CLASS REPORT SANITARY DISTRICT SYSTEM AUbUSt 13, 2001 SD_occp_codc_grand_total.rpt OCCUPANT EXEMPT NO. Or PICK -UP TRASH BUILDING SEfiBR CODE CLASS PARCEL UNIT ASSESSMENT AREA ASSESSMENT CROUP TOTAL = 16,490 16,496.00 $2,806,962.48 0.00 $398,708.32 T - Trailer C1 1 105.00 $19,385.10 0.00 $1,860.60 C2 115 1,118.00 $0.00 0.00 $19,810.96 GROUP TOTAL = 116 1,223.00 $19,385.10 0.00 $21,671.56 GRAND TOTAL = 25,559 43,229.00 $3,883,666.32 33,819,183.00 $1,601,755.49 3