City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends that the City Council adopt a Resolution approving the Engineer’s
Report for the Refuse and Recycling User’s Service Charge, declaring its intention to
levy and collect the Refuse and Recycling User’s Service Charges beginning July 1,
2015; and setting a public hearing for July 13, 2015, at 7:00 p.m. in the Mike
Balkman Council Chambers.
BACKGROUND:
The City operates an exclusive residential and commercial refuse collection and
disposal service as a municipal enterprise. The Refuse and Recycling Division (R&R)
of the Public Works Department operates solely on revenues generated from charges
for the provision of solid waste transfer and collection services to businesses and
residences, grants, and the sale of recyclable material. These revenues cover the
costs for refuse collection, disposal, recycling programs, and public outreach. R&R
operations are 100% supported by self-generated enterprise fund revenues.
In addition to providing revenue to cover the cost of routine R&R operations, refuse
fees cover the cost of the following additional services: La Ballona Creek Cleanup
Event, residential on-call bulky item pickup, citywide street sweeping, pedestrian
container collection, recycling program marketing, and removal of illegally dumped
bulky items.
The current refuse and recycling user service charges were last adjusted in 2009.
Since then, staff has worked diligently to reduce operating costs and increase
revenue. In 2010, staff identified the transportation of refuse from the City’s transfer
Meeting Date: 05/11/2015 Item Number: C-12
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Approving the Engineer’s
Report, Declaring the Intention to Order the Refuse and Recycling User’s Service
Charge, and Setting the Date, Time, and Place for the Public Hearing to be Monday,
July 13, 2015 at 7:00 PM in the Mike Balkman Council Chambers
Contact Person/Dept.: Damian
Skinner/PW
Phone Number: 310-253-6421
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council
Department Approval:
Charles D. Herbertson (05/04/15)
City Attorney Approval:
Carol Schwab (by H. Baker) (05/05/15)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (05/05/15)
City Manager Approval:
John M. Nachbar (05/06/15) City of Culver City, California
Agenda Item Report
station as a major cost center and recommended privatizing it. In March 2011, the
City entered into an agreement with CR&R to take over the service which saves the
Division hundreds of thousands of dollars each year. The savings realized from this
action enabled the Division to keep user service charges flat for six years even
though operating costs continued to grow.
During the budget preparation process for Fiscal Year 2015/2016, staff realized the
escalating cost associated with expanding the commercial recycling and composting
program, street sweeping, disposal, labor, fuel, vehicle maintenance, transfer station
improvements, etc. will surpass projected revenues. As a result, the refuse and
recycling user service charges are proposed to be adjusted to eliminate the
projected deficit.
On December 8, 2014, the City Council authorized entering into an agreement with
NBS, an independent consulting firm, to conduct a comprehensive refuse rate
analysis and develop a schedule of refuse and recycling collection fees (which was
incorporated into the Engineer’s Report) that balances projected expenditures and
capital costs with forecast revenues.
DISCUSSION:
NBS determined that the City’s current refuse service charges need to be adjusted to
collect more revenue from single family residential customers, commercial bin
customers, and drop-body customers. Current commercial recycling rates are
sufficient since the material collected generates revenue that offsets the increase in
the cost of collection. The following table shows the current and proposed draft
service charges.
Proposed Residential and Commercial (Bin) Refuse Service -
Scheduled Monthly & One-Time Rates
Customer Class &
Level-of-Service
Current
Refuse Rates
($/mo. or lift)
Proposed
2015/16
Refuse Rates
($/mo. or lift)
%
Change
Residential Service
Residential Automated Collection $29.30/mo. $31.38/mo. 7%
Can Service - Residential $29.30/mo. $31.38/mo. 7%
Can Service - Commercial $26.64/mo. $28.24/mo. 6%
Extra Auto Can - Refuse $5.00/mo. $15.00/mo. 200%
Commercial (Bin) Service
Scheduled Commercial (Bin) Service
2-CY Sched Refuse (1x/week) $113.90/mo. $117.85/mo. 3%
3-CY Sched Refuse (1x/week) $139.92/mo. $144.79/mo. 3%
3-CY Sched Refuse (300g) (1x/week) $139.92/mo. $144.79/mo. 3%
Unscheduled/One-time/On-Call Commercial (Bin) Service
2-CY Call/Extra Pickup - Refuse $27.77/lift $28.69/lift 3%
3-CY Call/Extra Pickup - Refuse $41.67/lift $43.05/lift 3%
2-CY Collection (On-Call Residential) $27.77/lift $28.69/lift 3% City of Culver City, California
Agenda Item Report
3-CY Collection Trash (Residential) $41.67/lift $43.05/lift 3%
Yardwaste/Composting Commercial (Bin) Service
2-CY Sched. Yard Waste $43.29/mo. $69.26/mo. 60%
3-CY Sched. Yard Waste $45.69/mo. $73.10/mo. 60%
2-CY Call Yard Waste $8.33/lift $15.02/lift 80%
3-CY Call Organic/Yard Waste $9.05/lift $17.05/lift 88%
Recycling Commercial (Bin) Service
Can Service - Recyclables $12.56/lift $12.56/lift 0%
2-CY Sched. & MFR Mixed Recycle $28.94/mo. $28.94/mo. 0%
3-CY Sched Comm./MFR Recycle $30.67/mo. $30.67/mo. 0%
2-CY Call Recycle $6.61/lift $6.61/lift 0%
3-CY Call Recycle $7.17/lift $7.17/lift 0%
Waste-to-Energy Commercial (Bin) Service
3-CY Sched Waste-to-Energy $139.92/mo. $155.00/mo. 11%
2-CY Call Waste-to-Energy $27.77/lift $30.82/lift 11%
3-CY Call Waste-to-Energy $41.67/lift $46.25/lift 11%
Miscellaneous Services
Bin Rental - 2 & 3 CY Bins ($/mo.) $46.31/mo. $48.00/mo. 4%
Scheduled Miss Stop $0 $0 0%
Scheduled Bin Pull-Out $31.77/mo. $32.72/mo. 3%
On-call Bin Pull-Out (one-time) $6.68/bin $6.88/bin 3%
Bulk Pick-up $41.13/bin $42.36/bin 3%
Bulk Pick-up Additional $20.56/bin $21.18/bin 3%
Bin Lock-set $9.62/mo. $9.91/mo. 3%
2-CY Temp Del/Rem $8.33/lift $8.58/lift 3%
3-CY Temp Del/Rem $8.33/lift $8.58/lift 3%
Pedestrian Can/Scooter $41.21/mo./can $42.45/mo./can 3%
Proposed Drop Box Refuse Service -
Scheduled Monthly & One-Time Rates
Drop Box Service Type
Current Drop
Box Rates
Proposed
2015/16
Drop Box
Rates
%
Change
Drop Box Collection Only (Empties)
DB 8-CY Empty $162.36 /empty $167.23 /empty 3.0%
DB 30-CY Empty $162.36 /empty $167.23 /empty 3.0%
DB 40-CY Empty $162.36 /empty $167.23 /empty 3.0%
DB 50-CY Empty $162.36 /empty $167.23 /empty 3.0%
DB Compactor Empty $162.36 /empty $167.23 /empty 3.0%
Drop Box Tonnage Only
Refuse/MSW
Tonnage Refuse Mixed $80.87 /ton $83.30 /ton 3.0%
Construction/Demolition Recycled Materials
Tonnage Metal $11.19 /ton $22.16 /ton 98.0%
Tonnage Asphalt /Concrete $46.22 /ton $65.05 /ton 40.7%
Tonnage Wood $51.84 /ton $90.90 /ton 75.3%
Tonnage Other Inert $51.84 /ton $65.05 /ton 25.5%
Tonnage C&D Recycle $80.87 /ton $90.90 /ton 12.4%
Yardwaste & Compost Materials
Tonnage Yard Waste $51.84 /ton $70.45 /ton 35.9%
Waste-to-Energy & Special Compactor City of Culver City, California
Agenda Item Report
Tonnage Waste-To-Energy (MSW) $95.87 /ton $104.60 /ton 9.1%
Compactor Variable Restaurant (special)|1010| $147.00 /mo. $151.41 /mo. 3.0%
Miscellaneous Fee & Charges
DB Monthly Rental ($/mo.)|1010| $143.31 /mo. $147.61 /mo. 3.0%
DB Delivery $0.00 /empty $0.00 /empty 0.0%
DB Respot $36.40 /empty $37.49 /empty 3.0%
Compactor Variable Non-Restaurant|1010| $52.00 /mo. $53.56 /mo. 3.0%
Communal Compactor Housekeeping $90.00 /mo. $92.70 /mo. 3.0%
Compactor Administrative Fee $80.00 /mo. $82.40 /mo. 3.0%
Additional/Penalty Charges (for Tonnages Exceeding
11 tons: Includes Base Rate & Penalty)|1010|
Tonnage Refuse Mixed +11T $161.74 /ton $124.95 /ton -22.7%
Tonnage Metal +11T N.A. /ton $33.24 /ton N.A.
Tonnage Asphalt +11T $92.44 /ton $97.57 /ton 5.5%
Tonnage Wood +11T $103.68 /ton $136.35 /ton 31.5%
Tonnage All Inerts +11T $103.68 /ton $97.57 /ton -5.9%
Tonnage C&D Recycle +11T N.A. /ton $136.35 /ton N.A.
Tonnage Yard Waste +11T $103.68 /ton $105.68 /ton 1.9%
Tonnage Waste-To-Energy +11T $191.74 /ton $156.90 /ton -18.2%
1. For 8-CY, 30-CY, 40-CY and 50-CY drop boxes.
2. Tonnages for less than +11 Tons is included in normal tonnage charge calculations. This rate
includes the base rate plus a penalty, which is 50% of the base rate.
3. The fee is based on restaurants with an average size of 2,582 square feet. The charge is increased or
decreased by dividing the square footage of a restaurant by 2,582 and multiplying that number by $151.41.
4. The fee is based on commercial businesses with an average size of 4,829 square feet. The charge is
increased or decreased by dividing the square footage of a business by 4,829 and multiplying that number by $53.56.
It is important to note that a major cost driver for the residential service charge and
the drop-body tonnage charges is the composting of green waste. Under the current
service charges set in 2009, green waste was recycled as Alternative Daily Cover
(ADC) at the Puente Hills Landfill (which closed on October 31, 2013) for $23 per ton.
Green waste is now being composted at American Organics, a large organics
processor located in Victorville, as part of the City’s Organics Recycling Program.
The cost of composting is 51% higher than ADC.
Rate Schedule Comparison to Other Cities
Staff surveyed local municipalities that provide solid waste services to their
communities. The survey revealed that Culver City’s proposed rate schedule is in
the range of what other cities charge for similar services. Based on this fact,
Sanitation Enterprise Fund revenues can be realigned with projected costs by
increasing commercial, residential, and drop-body service charges and still remain
competitive when compared to the surrounding market.
City
Current
Residential
Service Charge
Percent Difference
From Proposed Rate
of $31.38
Los Angeles $36.32 +14%
Santa Monica $35.54 +11%
Beverly Hills $36.40* +14% City of Culver City, California
Agenda Item Report
*Beverly Hills residents are charged $0.0104/square foot of lot every two months. Residential rates are
estimated for a 7,000 sq. ft. lot.
In addition to the fee schedule shown above, NBS prepared a 5-year financial plan
with revenue requirements for the Sanitation Enterprise Fund. These requirements
are based on several factors such as NBS’ recommended targets for operating,
capital, and the City’s projected capital improvement program. Based on their
findings and the 5 year financial plan, NBS proposed rate increases for most user
service charges in the first year and a revision to the charges with an overall revenue
increase of 3% each year for Fiscal Year 2016/2017 through Fiscal Year 2020/2021.
Pursuant to the Resolution adopted by the City Council on April 13, 2015, the Public
Works Director/City Engineer has prepared the Engineer’s Report for the Refuse and
Recycling User’s Service Charge and filed said Report with the City Clerk. A copy of
the Engineer’s Report is attached to this report for consideration and recommended
approval by the City Council.
Staff recommends that the City Council adopt a resolution (1) approving the
Engineer’s Report, (2) declaring the City Council’s intention to levy and collect
assessments; and (3) setting the time and place for the public hearing as required by
applicable law.
In accordance with applicable law, should the City Council adopt the proposed
resolution, (1) the City Clerk shall give notice of the public hearing by causing the
Resolution of Intention to be published at least 10 days prior to the date of the
hearing; and (2) a post card notifying all rate payers of the pending public hearing
will be mailed at least 45-day prior to the hearing.
FISCAL ANALYSIS:
As detailed in the Engineer’s Report, the proposed user service charges for Fiscal
Year 2015/2016 will balance the Sanitation Enterprise Fund operating budget for
Fiscal Year 2015/2016.
The user service charge schedule will be revisited annually to determine the impact
of escalating costs and whether further rate increases are necessary. Given this,
staff is recommending adopting the proposed charge increases effective July 1,
2015.
ATTACHMENTS:
1. Proposed Resolution
2. Engineer’s Report
City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
Adopt a Resolution (1) approving the Engineer’s Report, (2) declaring the City
Council’s intention to levy and collect assessments for the Refuse and Recycling
User’s Service Charge - Fiscal Year 2015/2016, and (3) setting the time, date,
and place for a Public Hearing for July 13, 2015, at 7:00 p.m. in the Mike
Balkman Council Chambers.
MEETING DATE: 05/11/15
AGENDA ITEM: Adoption of the Resolution Approving the Engineer’s Report,
Declaring the Intention to Order the Refuse and Recycling
User’s Service Charge and Setting the Date, Time, and
Place for the Public Hearing to be Monday, July 13, 2015 at
7:00 PM in the Mike Balkman Council Chambers.
ATTACHMENTS
Pages
1 Resolution 1 - 3
2 Engineer’s Report 4 - 27
Refuse Rate Study – City of Culver City Page 1
Prepared by NBS – May 4, 2015
32605 Temecula Parkway
Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
nbsgov.com
TRANSMITTAL
TO: DAMIAN SKINNER, ENVIRONMENTAL PROGRAMS AND OPERATIONS MANAGER,
CULVER CITY
FROM: GREG CLUMPNER, DIRECTOR OF UTILITY RATE PRACTICE, NBS
SUBJECT: REFUSE RATE STUDY FINDINGS, RECOMMENDATIONS AND
PROPOSED RATES
DATE: MAY 4, 2015
PURPOSE
The purpose of this transmittal is to summarize the findings of the Refuse Rate Study that NBS performed for
Culver City’s Refuse Utility (City or Utility). NBS’ findings focus on: (1) equitably allocating Utility costs to the
various customer classes and types of services, (2) adjusting various charges and rates in a manner that meets
Proposition 218 requirements, and (3) provides a plan that is financially sustainable.
Projected Utility revenue requirements and rate adjustments cover the next four years (2015-16 through 2019-20).
Recommended rate adjustments for 2015-16 retain the City’s current rate structure, although a number of
duplicate rates were combined while others that were no longer considered to be applicable were eliminated.
Broader objectives also included more accurately reflecting actual operational and disposal costs, while keeping
rates for recycling and diversion-related programs at levels that continue to encourage waste reduction. These
changes are explained in more detail below.
Three appendices are included in this transmittal:
? Appendix A: Selected Tables for the Financial Plan and Revenue Requirement Analysis
? Appendix B: Selected Tables for the Cost-of-Service
? Appendix C: Selected Tables for the Rate Design Analysis
OVERVIEW
A comprehensive refuse rate study typically includes the three key components shown in Exhibit 1, which are
based on general utility industry standard cost of service methodologies.|1010| The cost-of-service component in
particular addresses the general requirements of equity and fairness embodied in Proposition 218. In terms of the
chronology, these three steps represent the order they were performed in this study. Previous rate studies were
performed internally by the Utility.
|1010| Cost-of-service principles for refuse rates are very similar to those for other utilities, such as water and sewer. A good
general reference for rate study methodologies is “Principles of Water Rates, Fees, and Charges, Manual of Water Supply
Practices”, Manual M1, American Water Works Association, sixth edition, 2012.
PRELIMINARY DRAFT REPORT Refuse Rate Study – City of Culver City Page 2
Prepared by NBS – May 4, 2015
Exhibit 1. PRIMARY COMPONENTS OF A RATE STUDY
As a result of this rate study, the proposed new rates include changes in the total amount of rate revenue
collected, the revenue collected from each customer class, as well as individual rates and charges. The following
are the key findings, followed by a summary of each of the three parts of this rate analysis.
KEY RATE STUDY FINDINGS
The following are NBS’ key findings based on our analysis of the City’s refuse revenue requirements, cost of
service, and rate design issues. More details are provided in the following sections.
? Revenue Requirements by Customer Class – Based on the results of the cost-of-service analysis, the
City’s current refuse rates need to be adjusted to collect at least three percent more revenue from refuse
rates. The rate revenue collected from each customer class should be approximately 31% from
residential, 53% from commercial, and 16% from drop box/roll-off customers.
? Changes in Rate Design – The Utility’s basic rate design has not changed, although there have been a
number of similar rates that have been combined and others, which were determined to be either un-used
or no longer applicable, were eliminated.
? Recycling and Waste Reduction Objectives – Due in large part to State-mandated waste reduction
goals, the City has a broader objective of encouraging recycling and related waste diversion activities.
Because of this, recycling and waste diversion services were designed to provide sufficient incentives for
customers to continue, or increase their participation in these programs. This is a critical aspect of the
City’s ability to meet State-mandated waste reduction goals.
FINANCIAL PLAN AND REVENUE REQUIREMENTS ANALYSIS
Projected Revenue Requirements and Rate Increases – NBS prepared a detailed five-year financial plan,
which is summarized in Exhibit 2. The results of this plan indicate that the Utility will need at least a three percent
rate increases in each of the next five years (2015/16 through 2019/20). However, this plan does not fully fund
planned capital improvements at the transfer station.
Cash Management and Target Reserve Fund Balances – The Utility is projected to begin Fiscal Year 2015/16
with a total cash balance of $3.16 million. Exhibit 3 summarizes the cash balances for the operating and capital
reserve funds along with the recommended target reserves. As shown in this table, the capital reserve is
inadequate at this time to fund the transfer station improvements, which total approximately $2.5mil. Once the
Utility begins construction of these planned transfer station improvements, the capital reserve will be drawn down
and the target ending balance should be re-set to a lower amount.
Step 3: Rate Design – Considers the
rate structure and rates that best meet
the Utility’s need to collect the annual
revenue requirements from each
customer class.
Step 2: Cost-of-Service Analysis –
Allocates the revenue requirements to
the various customer classes (i.e.,
residential, commercial, roll-off) in a
“fair and equitable" manner.
Step 1: Financial Plan/ Revenue
Requirements – Compares current
sources of funds (revenues) to uses
of funds (expenses) and determines
the revenue needed from rates.
FINANCIAL PLAN /
REVENUE
REQUIREMENTS
COST-OF-SERVICE
ANALYSIS
RATE DESIGN
ANALYSIS |1010|2
3Refuse Rate Study – City of Culver City Page 3
Prepared by NBS – May 4, 2015
Exhibit 2. Summary of Projected Five-Year Revenue Requirements and Rate Increases
Exhibit 3. Summary of Projected Five-Year Reserve Funds
Budget
FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
Rate Revenue Under Prevailing Rates 11,153,057 $ 11,153,057 $ 11,153,057 $ 11,153,057 $ 11,153,057 $ 11,153,057 $
Interest Earnings (from Reserves) 385,049 385,049 385,049 385,049 385,049 385,049
Other Non-Rate Revenues & Grants 524,168 524,168 524,168 524,168 524,168 524,168
Total Sources of Funds 12,062,274 $ 12,062,274 $ 12,062,274 $ 12,062,274 $ 12,062,274 $ 12,062,274 $
Refuse Collection - Personnel Services 3,544,725 $ 3,686,514 $ 3,833,975 $ 3,987,334 $ 4,146,827 $ 4,312,700 $
" " - Maint. & Operations 4,033,476 4,154,480 4,279,115 4,407,488 4,539,713 4,675,904
" " - Capital Outlay 100,000 103,000 106,090 109,273 112,551 115,927
Subtotal: Refuse Collection 7,678,201 $ 7,943,994 $ 8,219,179 $ 8,504,094 $ 8,799,091 $ 9,104,532 $
Transfer Station - Personnel Services 789,857 821,451 854,309 888,482 924,021 960,982
" " - Maint. & Operations 2,783,273 2,867,271 2,953,814 3,042,980 3,134,848 3,229,501
" " - Debt Services 163,630 163,630 163,630 163,630 163,630 163,630
Subtotal: Transfer Station 3,736,760 $ 3,852,352 $ 3,971,754 $ 4,095,092 $ 4,222,499 $ 4,354,113 $
Recycling - Personnel Services 198,065 205,988 214,227 222,796 231,708 240,976
" - Maint. & Oper. (Net of Materials Rev.) 18,705 19,266 19,844 20,439 21,053 21,684
Subtotal: Recycling 216,770 $ 225,254 $ 234,071 $ 243,236 $ 252,761 $ 262,661 $
Debt Service 163,630 $ 163,629 $ 163,628 $ 163,631 $ $0 $0
Total Uses of Refuse Disposal Funds 11,795,361 $ 12,185,230 $ 12,588,632 $ 13,006,053 $ 13,274,350 $ 13,721,305 $
Surplus (Deficiency) before Rate Increase 266,913 $ (122,956) $ (526,358) $ (943,779) $ (1,212,076) $ (1,659,031) $
Additional Revenue from Rate Increases - $ 334,592 $ 679,221 $ 1,034,190 $ 1,399,807 $ 1,776,393 $
Total Rate Revenue - Including Rate Increases - $ 11,487,649 $ 11,832,278 $ 12,187,247 $ 12,552,864 $ 12,929,450 $
Surplus (Deficiency) after Rate Increase 266,913 $ 211,636 $ 152,863 $ 90,411 $ 187,731 $ 117,361 $
Projected Annual Rate Increase 0.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Net Revenue Requirement|1010|11,393,312 $ 11,276,013 $ 12,186,583 $ 12,604,004 $ 12,872,301 $ 13,319,256 $
1. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amount needed from refuse disposal rates.
Summary of Sources and Uses of Funds and
Net Revenue Requirements
Projected
Sources of Refuse Utility Funds
Uses of Refuse Utility Funds
Estimate
FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
Total Beginning Cash (1) 2,894,484 $ 3,161,397 $ $3,373,033 $3,525,896 $3,616,307 $3,804,038
Operating Reserve
Beginning Reserve Balance (2) 2,894,484 $ 2,908,000 $ 3,005,000 $ 3,106,000 $ 3,196,411 $ 3,319,000 $
Plus: Net Cash Flow (After Rate Increases) 266,913 211,636 152,863 90,411 187,731 117,361
Less: Transfer Out to Capital Replacement Reserve (253,397) (114,636) (51,863) - (65,141) (6,361)
Ending Operating Reserve Balance 2,908,000 $ 3,005,000 $ 3,106,000 $ 3,196,411 $ 3,319,000 $ 3,430,000 $
Target Ending Balance (25% of Operating Budget) 2,908,000 $ 3,005,000 $ 3,106,000 $ 3,211,000 $ 3,319,000 $ 3,430,000 $
Capital Reserve
Beginning Reserve Balance (2) - $ 253,397 $ 368,033 $ 419,896 $ 419,896 $ 485,038 $
Plus: Transfer of Operating Reserve Surplus 253,397 114,636 51,863 - 65,141 6,361
Less: Use of Reserves for Capital Projects - - - - - -
Ending Capital Reserve Balance 253,397 $ 368,033 $ 419,896 $ 419,896 $ 485,038 $ 491,399 $
Target Ending Balance (3) 2,500,000 $ 2,500,000 $ 2,500,000 $ 2,500,000 $ 2,500,000 $ 2,500,000 $
Ending Balance 3,161,397 $ 3,373,033 $ 3,525,896 $ 3,616,307 $ 3,804,038 $ 3,921,399 $
Minimum Target Ending Balance 5,408,000 $ 5,505,000 $ 5,606,000 $ 5,711,000 $ 5,819,000 $ 5,930,000 $
Ending Surplus/(Deficit) Compared to Reserve Targets (2,246,603) $ (2,131,967) $ (2,080,104) $ (2,094,693) $ (2,014,962) $ (2,008,601) $
Annual Interest Earnings Rate (4) 0.25% 0.25% 0.50% 0.75% 1.00% 1.25%
(1) Total beginning cash balance was provided by City staff via email on January 5, 2015. Cash balance as of January 5, 2015.
(2) For purposes of this analysis, NBS assumes that Refuse Disposal funds are available for an Operating Reserve, and any annual surpluses generated beyond
FY 2015/16 will fund a Capital Rehabilitation & Replacement Reserve.
(3) The Capital Reserve target is typically set to 3% of net assets; the current net capital asset value is $1,585,341, per the City of Culver City CAFR for FY 2013/14.
However, the primary capital need is to fund future capital improvements at the trnasfer station, and City staff has set a target of $2.5 million to fund these projects.
Once these improvements are completed, the target balance for the capital reserve should be reduced to about 3% of the net asset value.
(4) Historical interest earning rates were referenced on the CA Treasurer's Office website for funds invested in LAIF. Future years earnings were conservatively
estimated through 2023 and phase into the historical 10-year average interest earnings rate.
SUMMARY OF RESERVE FUNDS
ProjectedRefuse Rate Study – City of Culver City Page 4
Prepared by NBS – May 4, 2015
NBS’ recommended reserve fund balance targets are as follows:
? Operating Reserve - 25% or 90 days of operating and maintenance expenses.
? Capital Rehabilitation and Replacement Reserve - $2.5 million for the purpose of funding transfer
station improvements, then 3% of system net assets.
Funding of Transfer Station Capital Improvement Projects – The Utility has several planned capital
improvements at the transfer station, with the first two having the highest priority:
? Weigh scale replacement ($250,000)
? Stormwater diversion system ($1.0 mil.)
? Office Expansion ($1.0 mil.)
? Locker room expansion ($130,000)
Although this financial plan does not fully fund these improvements, the Utility will begin these projects in FY
2015/16 using reserves to the extent possible, and fund the remaining ones when sufficient funds are available.
COST-OF-SERVICE ANALYSIS
The purpose of the cost-of-service analysis is to equitably allocate the refuse utility costs, or the net revenue
required from refuse rates, to each customer class. Although Prop 218 specifically refers to “property-related” fees
and user charges, recent court rulings addressing Prop 218 rate design issues have established that the focus of
fairness and equity is established on the basis of “customer classes” rather than individual customers. Effectively
this means that the City is obligated to fairly allocate refuse program costs to the three customer classes
(residential, commercial and roll-off/drop box services). The third step in this rate study (rate design) deals with
how the costs allocated to each customer class are further allocated to individual rates for the various types of
service within each customer class.
The cost-of-service analysis includes two primary steps:
1. Classifying various expenditures to one of several types of costs:
a. Collection system-related costs
b. Transfer station-related costs
c. Disposal-related costs
d. Recycling-related costs
e. General and administrative costs (G&A)
2. Allocating costs to customer classes based on specific allocation factors:
a. Collection costs are allocated based on a detailed analysis of staffing costs and by sub-dividing
these costs into residential vs. commercial programs (roll-off/drop costs are treated as a separate
collection program within this analysis).
b. Transfer station costs are allocated based on total tonnages of materials handled by customer
class (residential, commercial, and roll-off/drop box).
c. Disposal costs are allocated also allocated based on tonnages of materials handled at the
transfer station, excluding recycled materials, which are processed at recycling facilities rather
than “disposal” facilities.
d. Recycling costs are separated into residential and commercial classes for budgetary purposes,
and the recycling costs addressed here are only commercial costs, which are allocated
exclusively to commercial customers. Refuse Rate Study – City of Culver City Page 5
Prepared by NBS – May 4, 2015
e. G&A costs are allocated by a more general allocation method that uses the average of the total
number of accounts served within each customer class|1010| and the percentage of all non-G&A costs
for each customer class.
This analysis produced the cost allocations for each customer class for FY 2015/16 shown in Exhibit 4, along with
a summary of the refuse rate revenue currently collected from each customer class. We note that Exhibit 4
indicates that $11.49 million should be recovered through refuse rates. This total reflects a three-percent increase
in the City’s current rate revenue, as previously shown in Exhibit 2. These amounts of rate revenue are further
broken down in the rate design analysis. There are also other miscellaneous charges for special services|1010| not
included in Exhibit 4 that total another $0.41 million.
Exhibit 4. Revenue Requirements by Customer Class from COS Analysis
RATE DESIGN AND PROPOSED RATES
The purpose of the rate design analysis is to determine how to collect rate revenue (i.e., as shown in Exhibit 4)
from the individual rates for specific services within each of the customer classes. Accurately allocating these
amounts of rate revenue improves the overall equity among customer classes. However, it was also necessary to
consider broader recycling and waste diversion goals when setting individual rates within each customer class.
That is, if recycling and waste diversion costs result in rates that are higher than refuse collection/disposal, they
should be adjusted to ensure that customers are not incentivized to placing their recyclable materials into refuse
collection because it’s cheaper than recycling service. For example, disposal cost for yardwaste and compostable
materials is $47/ton and most construction/demolition waste is $51/ton, which is actually higher than it is for
general refuse disposal ($31/ton).
As a result of this rate study, some rates and charges increase by more or less than the general three-percent
rate increase. Also, the City currently assesses a 100% penalty for drop box containers that exceed the maximum
weight limit of 11 tons (i.e., the disposal rate is doubled). Since this penalty is not a Prop 218-based rate (i.e., it is
intended to discourage overloading containers, which can result in violation of the maximum tonnages that can be
transported on public roads and highways), NBS and City staff agreed that a lowering of this penalty to 50%
would still be a sufficient deterrent to overloading containers. Exhibits 5 and 6 summarize the current and
proposed FY 2015/16 rates.
|1010| A smaller portion of these costs (i.e., 25% less) were allocated to residential customers because charges for residential
customers are placed on the property tax rolls, thereby reducing the G&A burden for these customers. Commercial and roll-off
customers are billed monthly on an individual customer basis. |1010| These include bin pull-out, lock set, bulk item pick-up, and pedestrian (downtown) can collection.
Residential Bin Service Drop Box
Collection Costs $2,151,837 $3,051,973 $0 $5,203,810
Transfer Station $190,669 $376,084 $249,997 $816,751
Disposal $590,907 $1,172,053 $778,374 $2,541,334
Roll-Off/Drop Box $0 $0 $662,455 $662,455
Recycling $0 $941,347 $0 $941,347
General & Administrative $648,187 $553,552 $120,213 $1,321,952
Total Cost-of-Service $3,581,601 $6,095,009 $1,811,039 $11,487,649
Percent of Total 31% 53% 16% 100.0%
Current Revenue $3,345,319 $5,696,795 $1,693,386 $10,735,500
Cost Categories
Summary of Cost Allocations to Customer Classes
Total
Customer ClassesRefuse Rate Study – City of Culver City Page 6
Prepared by NBS – May 4, 2015
Exhibit 5. Current and Proposed Residential and Commercial Refuse Rates
Residential Service
Residential Automated Collection $29.30/mo. $31.38/mo. 7%
Can Service - Residential $29.30/mo. $31.38/mo. 7%
Can Service - Commercial $26.64/mo. $28.24/mo. 6%
Extra Auto Can - Refuse $5.00/mo. $15.00/mo. 200%
Commercial (Bin) Service
Scheduled Commercial (Bin) Service
2-CY Sched Refuse (1x/week) $113.90/mo. $117.85/mo. 3%
3-CY Sched Refuse (1x/week) $139.92/mo. $144.79/mo. 3%
3-CY Sched Refuse (300g) (1x/week) $139.92/mo. $144.79/mo. 3%
Unscheduled/One-time/On-Call Commercial (Bin) Service
2-CY Call/Extra Pickup - Refuse $27.77/lift $28.69/lift 3%
3-CY Call/Extra Pickup - Refuse $41.67/lift $43.05/lift 3%
2-CY Collection
(On-Call Residential) $27.77/lift $28.69/lift 3%
3-CY Collection Trash (Residential) $41.67/lift $43.05/lift 3%
Yardwaste/Composting Commercial (Bin) Service
2-CY Sched. Yard Waste $43.29/mo. $69.26/mo. 60%
3-CY Sched. Yard Waste $45.69/mo. $73.10/mo. 60%
2-CY Call Yard Waste $8.33/lift $15.02/lift 80%
3-CY Call Organic/Yard Waste $9.05/lift $17.05/lift 88%
Recycling Commercial (Bin) Service
Can Service - Recyclables $12.56/lift $12.56/lift 0%
2-CY Sched. & MFR Mixed Recycle $28.94/mo. $28.94/mo. 0%
3-CY Sched Comm./MFR Recycle $30.67/mo. $30.67/mo. 0%
2-CY Call Recycle $6.61/lift $6.61/lift 0%
3-CY Call Recycle $7.17/lift $7.17/lift 0%
Waste-to-Energy Commercial (Bin) Service
3-CY Sched Waste-to-Energy $139.92/mo. $155.00/mo. 11%
2-CY Call Waste-to-Energy $27.77/lift $30.82/lift 11%
3-CY Call Waste-to-Energy $41.67/lift $46.25/lift 11%
Miscellaneous Services
Bin Rental - 2 & 3 CY Bins ($/mo.) $46.31/mo. $48.00/mo. 4%
Scheduled Miss Stop $0 $0 0%
Scheduled Bin Pull-Out $31.77/mo. $32.72/mo. 3%
On-call Bin Pull-Out (one-time) $6.68/bin $6.88/bin 3%
Bulk Pick-up $41.13/bin $42.36/bin 3%
Bulk Pick-up Additional $20.56/bin $21.18/bin 3%
Bin Lock-set $9.62/mo. $9.91/mo. 3%
2-CY Temp Del/Rem $8.33/lift $8.58/lift 3%
3-CY Temp Del/Rem $8.33/lift $8.58/lift 3%
Pedestrian Can/Scooter $41.21/mo./can $42.45/mo./can 3%
Proposed Residential and Commercial (Bin) Refuse Service -
Scheduled Monthly & One-Time Rates
Proposed 2015/16
Refuse Rates
($/mo. or lift)
Customer Class &
Level-of-Service
Current Refuse
Rates
($/mo. or lift)
%
ChangeRefuse Rate Study – City of Culver City Page 7
Prepared by NBS – May 4, 2015
Exhibit 6. Current and Proposed Drop Box Refuse Rates
Drop Box Collection Only (Empties)
DB 8-CY Empty $162.36 /empty $167.23 /empty 3.0%
DB 30-CY Empty $162.36 /empty $167.23 /empty 3.0%
DB 40-CY Empty $162.36 /empty $167.23 /empty 3.0%
DB 50-CY Empty $162.36 /empty $167.23 /empty 3.0%
DB Compactor Empty $162.36 /empty $167.23 /empty 3.0%
Drop Box Tonnage Only
Refuse/MSW
Tonnage Refuse Mixed $80.87 /ton $83.30 /ton 3.0%
Construction/Demolition Recycled Materials
Tonnage Metal $11.19 /ton $22.16 /ton 98.0%
Tonnage Asphalt /Concrete $46.22 /ton $65.05 /ton 40.7%
Tonnage Wood $51.84 /ton $90.90 /ton 75.3%
Tonnage Other Inert $51.84 /ton $65.05 /ton 25.5%
Tonnage C&D Recycle $80.87 /ton $90.90 /ton 12.4%
Yardwaste & Compost Materials
Tonnage Yard Waste $51.84 /ton $70.45 /ton 35.9%
Waste-to-Energy & Special Compactor
Tonnage Waste-To-Energy (MSW) $95.87 /ton $104.60 /ton 9.1%
Compactor Variable Restaurant (special) $147.00 /mo. $151.41 /mo. 3.0%
Miscellaneous Fee & Charges
DB Monthly Rental ($/mo.)|1010|$143.31 /mo. $147.61 /mo. 3.0%
DB Delivery $0.00 /empty $0.00 /empty 0.0%
DB Respot $36.40 /empty $37.49 /empty 3.0%
Compactor Variable Non-Restaurant $52.00 /mo. $53.56 /mo. 3.0%
Communal Compactor Housekeeping $90.00 /mo. $92.70 /mo. 3.0%
Compactor Administrative Fee $80.00 /mo. $82.40 /mo. 3.0%
Additional/Penalty Charges (for Tonnages Exceeding 11 tons: Includes Base Rate & Penalty)|1010|Tonnage Refuse Mixed +11T $161.74 /ton $124.95 /ton -22.7%
Tonnage Metal +11T N.A. /ton $33.24 /ton N.A.
Tonnage Asphalt +11T $92.44 /ton $97.57 /ton 5.5%
Tonnage Wood +11T $103.68 /ton $136.35 /ton 31.5%
Tonnage All Inerts +11T $103.68 /ton $97.57 /ton -5.9%
Tonnage C&D Recycle +11T N.A. /ton $136.35 /ton N.A.
Tonnage Yard Waste +11T $103.68 /ton $105.68 /ton 1.9%
Tonnage Waste-To-Energy +11T $191.74 /ton $156.90 /ton -18.2%
1. For 8-CY, 30-CY, 40-CY and 50-CY drop boxes.
2. Tonnages for less than +11 Tons is included in normal tonnage charge calculations. This rate
includes the base rate plus a penalty, which is 50% of the base rate.
Proposed Drop Box Refuse Service -
Scheduled Monthly & One-Time Rates
Proposed
2015/16
Drop Box Rates
%
Change
Current Drop
Box Rates
Drop Box Service Type
Refuse Rate Study – City of Culver City Page 8
Prepared by NBS – May 4, 2015
CONSULTANT RECOMMENDATIONS
Based on the results of this study, NBS recommends the City take the following actions:
? Adopt this rate analysis as the basis for adjustments to the City’s current refuse rates.
? Adopt a five-year Refuse Utility financial plan, as summarized in Exhibits 2 and 3, as the “road
map” for the Utility’s financial management and management of reserves through 2019/20.
? Adopt and implement the proposed refuse rates shown above in Exhibits 5 and 6. This will
necessitate a Prop 218 process to adopt the FY 2015/16 rates and, should the City decide to
increase rates after FY 2015/16, each year thereafter.
PRINCIPAL ASSUMPTIONS AND CONSIDERATIONS
In preparing this transmittal and the opinions and recommendations included herein, NBS has relied on a
number of assumptions and considerations with regard to financial matters, operating statistics, and other
conditions and events that may occur in the future. The information and assumptions, including the
Utility’s budgets and information from Refuse Utility staff, were provided by sources we believe to be
reliable; however, NBS has not independently verified all such information.
While we believe the use of such information and assumptions is reasonable for the purpose of this rate
study and transmittal, some assumptions will invariably not materialize as stated herein and may vary
significantly due to unanticipated events and circumstances. Therefore, the actual results can be
expected to vary from those projected to the extent that actual future conditions differ from those
assumed by us or provided to us by others. Given that, the Utility should closely monitor future revenues,
costs and capital plans to determine if and when any significant variances from the results shown in this
report may occur, and take appropriate action to reconcile differences as needed.
APPENDICES
Supporting tables that provide more detailed information and analyses are included below. These
appendices include tables that generally follow the three steps of the rate study:
? Appendix A: Financial Analysis
? Appendix B: Cost-of-Service Analysis
? Appendix C: Rate Design Analysis
Refuse Rate Study – City of Culver City Page 9
Prepared by NBS – May 4, 2015
APPENDIX A – Financial Plan Tables
Appendix Table A-1
Estimate
FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
Sources of Refuse Disposal Funds (1)
Rate Revenue - Refuse Collection (2): 11,153,057 $ 11,153,057 $ 11,153,057 $ 11,153,057 $ 11,153,057 $ 11,153,057 $
Grant Revenue 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $
Interest Income & Penalties 385,049 385,049 385,049 385,049 385,049 385,049
Sale of Recycle Items 507,168 507,168 507,168 507,168 507,168 507,168
Other Non-Rate Revenues 7,000 7,000 7,000 7,000 7,000 7,000
Total Sources of Funds 12,062,274 $ 12,062,274 $ 12,062,274 $ 12,062,274 $ 12,062,274 $ 12,062,274 $
Uses of Refuse Disposal Funds
Operating Expenses (1):
Refuse Collection
Personnel Services 3,544,725 $ 3,686,514 $ 3,833,975 $ 3,987,334 $ 4,146,827 $ 4,312,700 $
Maintenance & Operations 4,033,476 4,154,480 4,279,115 4,407,488 4,539,713 4,675,904
Capital Outlay 100,000 103,000 106,090 109,273 112,551 115,927
Subtotal: Refuse Collection 7,678,201 $ 7,943,994 $ 8,219,179 $ 8,504,094 $ 8,799,091 $ 9,104,532 $
Transfer Station
Personnel Services 789,857 $ 821,451 $ 854,309 $ 888,482 $ 924,021 $ 960,982 $
Maintenance & Operations 2,783,273 2,867,271 2,953,814 3,042,980 3,134,848 3,229,501
Capital Outlay - - - - - -
Debt Services 163,630 163,630 163,630 163,630 163,630 163,630
Subtotal: Transfer Station 3,736,760 $ 3,852,352 $ 3,971,754 $ 4,095,092 $ 4,222,499 $ 4,354,113 $
Recycling
Personnel Services 198,065 $ 205,988 $ 214,227 $ 222,796 $ 231,708 $ 240,976 $
Maintenance & Operations 18,705 19,266 19,844 20,439 21,053 21,684
Capital Outlay - - - - - -
Subtotal: Recycling 216,770 $ 225,254 $ 234,071 $ 243,236 $ 252,761 $ 262,661 $
Subtotal: Operating Expenses 11,631,731 $ 12,021,601 $ 12,425,004 $ 12,842,422 $ 13,274,350 $ 13,721,305 $
Other Expenditures:
Existing Debt Service 163,630 $ 163,629 $ 163,628 $ 163,631 $ - $ - $
New Debt Service - - - - - -
Rate-Funded Capital Expenses - - - - - -
Subtotal: Other Expenditures 163,630 $ 163,629 $ 163,628 $ 163,631 $ - $ - $
Total Uses of Refuse Disposal Funds 11,795,361 $ 12,185,230 $ 12,588,632 $ 13,006,053 $ 13,274,350 $ 13,721,305 $
Net Revenue Reqt. (Total Uses less Non-Rate Rev.) 11,393,312 $ 11,276,013 $ 12,186,583 $ 12,604,004 $ 12,872,301 $ 13,319,256 $
plus: Revenue from Rate Increases - 334,592 679,221 1,034,190 1,399,807 1,776,393
Annual Surplus/(Deficit) (Incl. Rev. from Rate Incr.) 266,913 $ 211,636 $ 152,863 $ 90,411 $ 187,731 $ 117,361 $
Total Rate Revenue After Rate Increases 11,153,057 $ 11,487,649 $ 11,832,278 $ 12,187,247 $ 12,552,864 $ 12,929,450 $
Projected Annual Rate Revenue Increase 0.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Cumulative Increase from Annual Revenue Increases 0.00% 3.00% 6.09% 9.27% 12.55% 15.93%
Debt Coverage After Rate Increase (3)
2.63 2.29 1.93 1.55 N/A N/A
(1) Revenue and expenses for FY 2014/15 are from the City's FY 2014/15 Adopted Budget; Inflationary factors are applied to project costs in 2015/16 and beyond.
(2) For the purposes of this analysis, NBS has assumed 0% customer growth.
(3) Debt coverage after rate increase is shown as "N/A" because there are no further outstanding debt obligations.
RATE REVENUE REQUIREMENTS SUMMARY
ProjectedRefuse Rate Study – City of Culver City Page 10
Prepared by NBS – May 4, 2015
Appendix Figure A-1
Appendix Table A-2
Appendix Table A-3
Estimate
FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
Total Beginning Cash (1) 2,894,484 $ 3,161,397 $ $3,373,033 $3,525,896 $3,616,307 $3,804,038
Operating Reserve
Beginning Reserve Balance (2) 2,894,484 $ 2,908,000 $ 3,005,000 $ 3,106,000 $ 3,196,411 $ 3,319,000 $
Plus: Net Cash Flow (After Rate Increases) 266,913 211,636 152,863 90,411 187,731 117,361
Less: Transfer Out to Capital Replacement Reserve (253,397) (114,636) (51,863) - (65,141) (6,361)
Ending Operating Reserve Balance 2,908,000 $ 3,005,000 $ 3,106,000 $ 3,196,411 $ 3,319,000 $ 3,430,000 $
Target Ending Balance (90-days of O&M) 2,908,000 $ 3,005,000 $ 3,106,000 $ 3,211,000 $ 3,319,000 $ 3,430,000 $
Capital Reserve
Beginning Reserve Balance (2) - $ 253,397 $ 368,033 $ 419,896 $ 419,896 $ 485,038 $
Plus: Transfer of Operating Reserve Surplus 253,397 114,636 51,863 - 65,141 6,361
Less: Use of Reserves for Capital Projects - - - - - -
Ending Capital Reserve Balance 253,397 $ 368,033 $ 419,896 $ 419,896 $ 485,038 $ 491,399 $
Target Ending Balance (3) 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $
Ending Balance 3,161,397 $ 3,373,033 $ 3,525,896 $ 3,616,307 $ 3,804,038 $ 3,921,399 $
Minimum Target Ending Balance 4,908,000 $ 5,005,000 $ 5,106,000 $ 5,211,000 $ 5,319,000 $ 5,430,000 $
Ending Surplus/(Deficit) Compared to Reserve Targets (1,746,603) $ (1,631,967) $ (1,580,104) $ (1,594,693) $ (1,514,962) $ (1,508,601) $
Annual Interest Earnings Rate (4) 0.25% 0.25% 0.50% 0.75% 1.00% 1.25%
(1) Total beginning cash balance was provided by City staff via email on January 5, 2015. Cash balance as of January 5, 2015.
(2) For purposes of this analysis, NBS assumes that Refuse Disposal funds are available for an Operating Reserve, and any annual surpluses generated beyond
FY 2015/16 will fund a Capital Rehabilitation & Replacement Reserve.
(3) The Capital Reserve target is typically set to 3% of net assets; the current net capital asset value is $1,585,341, per the City of Culver City CAFR for FY 2013/14.
However, the primary capital need is to fund future capital improvements at the trnasfer station, and City staff has set a target of $2 million to fund these projects.
Once these improvements are completed, the target balance for the capital reserve should be reduced to about 3% of the net asset value.
(4) Historical interest earning rates were referenced on the CA Treasurer's Office website for funds invested in LAIF. Future years earnings were conservatively
estimated through 2023 and phase into the historical 10 year average interest earnings rate.
SUMMARY OF RESERVE FUNDS
Projected
REFUSE DISPOSAL FUND EXISTING DEBT OBLIGATIONS Budget
Annual Repayment Schedules: (1) FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
General Fund
Principal Payment 74,565 $ 79,784 $ 85,369 $ 91,346 $ - $ - $
Interest Payment 23,175 $ 17,955 $ 12,370 $ 6,394 $ - $ - $
Subtotal: Annual Debt Service 97,740 $ 97,739 $ 97,739 $ 97,740 $ - $ - $
Equipment Replacement Fund
Principal Payment 43,598 $ 46,650 $ 49,915 $ 53,410 $ - $ - $
Interest Payment 13,550 $ 10,498 $ 7,233 $ 3,739 $ - $ - $
Subtotal: Annual Debt Service 57,148 $ 57,148 $ 57,148 $ 57,149 $ - $ - $
Innovation Fund
Principal Payment 6,669 $ 7,136 $ 7,635 $ 8,170 $ - $ - $
Interest Payment 2,073 $ 1,606 $ 1,106 $ 572 $ - $ - $
Subtotal: Annual Debt Service 8,742 $ 8,742 $ 8,741 $ 8,742 $ - $ - $
Grand Total: Existing Annual Debt Service 163,630 $ 163,629 $ 163,628 $ 163,631 $ - $ - $
(1) provided by City staff; filename: Sanitation Loan Payment Schedule.pdf. Per City staff, loans are internal transactions and have no reserve or coverage requirements.
ProjectedRefuse Rate Study – City of Culver City Page 11
Prepared by NBS – May 4, 2015
Appendix Table A-4
Current Rates
Effective
7/1/2009
Refuse & Recycling Service Rates
2 Cubic Yard (CY) Bins
2CY Scheduled Mixed Recycle per month (2) $28.94
2CY Scheduled Greenwaste per month (2) $43.29
2CY Scheduled Food Waste per month (2) $113.90
2CY Scheduled Trash per month (2) $113.90
On-call 2CY Mixed Recycle per call $6.61
On-call 2CY Greenwaste per call $8.33
On-call 2CY Trash per call $27.77
3 Cubic Yard (CY) Bins
3CY Scheduled Mixed Recycle per month (2) $30.67
3CY Scheduled Greenwaste per month (2) $45.69
3CY Scheduled Food Waste per month (2) $139.92
3CY Scheduled Trash per month (2) $139.92
On-call 3CY Mixed Recycle per call $7.17
On-call 3CY Greenwaste per call $9.05
On-call 3CY Trash per call $41.67
Drop Box / Compactor Fees
Compactor/Drop Box oval/Empty plus ton $162.36
8CY, 10CY, 40CY Rental, per month $143.31
Drop Box / Compactor Fees Re-spot $36.40
Tonnage Fees
Less than 11 Tons
Mixed Metal per ton $11.19
Asphalt Disposal per ton $46.22
Contaminated Wood per ton $51.84
Co-mingled Recyclables per ton $30.69
Greenwaste Disposal per ton $51.84
Inert Disposal per ton $51.84
Food Waste Disposal per ton $80.87
Trash Disposal per ton $80.87
Greater than 11 Tons
Mixed Metal per ton $22.38
Asphalt Disposal per ton $92.44
Contaminated Wood per ton $103.69
Co-mingled Recyclables per ton $61.38
Greenwaste Disposal per ton $103.69
Inert Disposal per ton $103.69
Food Waste Disposal per ton $161.75
Trash Disposal per ton $161.75
Miscellaneous
Temporary Bin Rental $46.31
Temporary Bin delivery/removal $8.33
Lock Set $9.62
Bulk Pickup Fee $41.13
Excessive Bulk Pickup Fee $20.56
Scheduled Bin Pull-Out per bin $31.77
On-call Bin Pull-Out per bin $6.68
(1) Rates are effective 01/01/2014. Data Source: rate schedule from City's website.
(2) Once a week collection.
Culver City Public Works Department
Environmental Programs & Operations Division
Current Rate Schedule (1)Refuse Rate Study – City of Culver City Page 12
Prepared by NBS – May 4, 2015
APPENDIX B – Cost-of-Service Analysis Tables
Appendix Table B-1
Appendix Table B-2
Residential Bin Service Drop Box
Collection Costs $2,151,837 $3,051,973 $0 $5,203,810
Transfer Station $190,669 $376,084 $249,997 $816,751
Disposal $590,907 $1,172,053 $778,374 $2,541,334
Roll-Off/Drop Box $0 $0 $662,455 $662,455
Recycling $0 $941,347 $0 $941,347
General & Administrative $648,187 $553,552 $120,213 $1,321,952
Total Cost-of-Service $3,581,601 $6,095,009 $1,811,039 $11,487,649
Percent of Total 31% 53% 16% 100.0%
Current Revenue $3,345,319 $5,696,795 $1,693,386 $10,735,500
Cost Categories
Summary of Cost Allocations to Customer Classes
Total
Customer Classes
Summary of Refuse Cost Allocations to Customer Classes
Percent
Allocated
Costs
Allocated
Percent
Allocated
Costs
Allocated
Percent
Allocated
Costs
Allocated
Residential 41.4% $2,151,837 23.3% $190,669 23.3% $590,907
Bin Service 58.6% $3,051,973 46.0% $376,084 46.1% $1,172,053
Drop Box 0.0% $0 30.6% $249,997 30.6% $778,374
Total Costs 100% $5,203,810 100% $816,751 100% $2,541,334
Percent
Allocated
Costs
Allocated
Percent
Allocated
Costs
Allocated
Percent
Allocated
Costs
Allocated
Residential 0.0% $0 0.0% $0 49.0% $648,187
Bin Service 0.0% $0 100.0% $941,347 41.9% $553,552
Drop Box 100.0% $662,455 0.0% $0 9.1% $120,213
Total Costs 100% $662,455 100% $941,347 100% $1,321,952
Basis for Cost-of-Service Allocations:
1. Collection costs for residential includes refuse, yardwaste & recycling collection; commercial collection services includes yardwaste
(as a separate service) but no recycling program costs. From the functionalization and classification analysis.
2. Transfer Station percent allocations are for total tonnages received at the transfer station (excluding LA City materials covered
under a separate contract); total TS cost is from the functionalization and classification analysis.
3. Disposal cost percent allocations are only for disposal tonnages received at the transfer station (excludes recycled materials);
total disposal cost is from the functionalization and classification analysis.
4. Total Drop Box costs from the functionalization and classification analysis and assumed to include only Drop Box program costs.
5. Only includes commercial recycling costs; residential costs were included in residential collection costs and drop box recycling is
not considered part of the recycling program. From the Functionalization & Classification analysis.
6. General and Administrative (G&A) costs are allocated by the average % of two metrics: (1) total % of all non-G&A costs, and
(2) total % of accounts in each customer class (with residential reduced by 25% to account for direct billing on the tax roll).
Disposal Costs|1010|Transfer Station Costs|1010|G&A Costs|1010|Recycling Costs|1010|See Table COSA-1 See Table COSA-2 See Table COSA-2
Drop Box Costs|1010|Customer
Class
Customer
Class
See Table COSA-1 See Table COSA-1
Collection Costs|1010|See Table COSA-3Refuse Rate Study – City of Culver City Page 13
Prepared by NBS – May 4, 2015
Appendix Table B-3
Appendix Table B-4
Appendix Table B-5
Residential Commercial Drop Box Total
Recycled Materials Receive at TS|1010|Total Recycled Tonnages 1,190 2,360 1,567 5,116
Allocation %'s 23% 46% 31% 100.0%
Disposal Materials Receive at TS
7 Organic 12.03 148.09 1,010.35 1,170.47
8 Christmas Trees 5.30 5.30
10 Refuse Mixed 7,472.09 22,385.00 10,568.25 40,425.34
17 Yard Waste 4,071.13 386.51 321.98 4,779.62
18 Asphalt/Concrete 1,354.88 1,354.88
19 Wood-Clean 4.47 4.47
20 Wood-Contaminated 181.40 181.40
24 Other Inert 1,774.54 1,774.54
Total Disposal Tonnages 11,555.25 22,919.60 15,221.17 49,696.02
Allocation %'s 23.3% 46.1% 30.6% 100.0%
Total Recycled & Disposal 12,745 25,279 16,788 54,812
Allocation %'s 23% 46% 31% 100.0%
1. Source: Culver City, Transaction Summaries by Material Type, 3/24/2015.
2. Estimated based on initial tonnage and materials revenue data, which varies through out the year.
Material Type
Customer Classes (tons)|1010|Table COSA-2
Summary of Disposal & Recycled Materials Tonnages Received at Transfer Station
(Used to Allocate Transfer Station and Disposal Costs)
Allocation Factors for G&A Costs - Number of Accounts Served
No. of
Accounts
Adjustment
for Billing
Procedure|1010|Adjusted
No. of
Accounts
% of
Adjusted
Accounts
Residential (Auto Collection) 9,443 0.75 7,082 69.2%
Bin Service (Scheduled) 2,992 1.00 2,992 29.2%
Drop Box (Pickups @ 8 tons/ea.) 159 1.00 159 1.6%
Total 12,594 -- 10,233 100.0%
1. Residential is on the tax roll vs. direct billed; this represents a lower cost for G&A type services,
and that difference is reflected in the adjustment shown here.
Customer Class
Total of All
Other Costs
(Non-G&A)
% of All Other
Non-G&A
Costs
Residential $2,932,654 29%
Bin Service $5,542,055 55%
Drop Box $1,690,988 17%
Total $10,165,697 100%
1. Reflects the difference in billing costs (residential is on tax roll,
not direct bill).
Customer Class
Allocation Factors for G&A Costs -
Total System Costs by ClassRefuse Rate Study – City of Culver City Page 14
Prepared by NBS – May 4, 2015
Appendix Table B-6
Appendix Table B-7
% of
Adjusted
Accounts
% of All Other
Non-G&A
Costs
Composite %
Allocations|1010|Residential 69% 29% 49%
Bin Service 29% 55% 42%
Drop Box 2% 17% 9%
Total 100% 100% 100%
1. Assumes % of Accounts and % of Non-G&A Costs are equally weighted.
Customer Class
Table COSA-3
Composite Allocation Factors for G&A Costs -
%'s of Accounts and Non-G&A System Costs
Residential Commercial Drop Box Total
6 Mixed Recycle CC $0 $0 $0 $0
11 Commingle Recycling $64,983 $33,652 $14,772 $113,407
12 Cardboard $0 $14,059 $78,897 $92,955
16 Metal Mixed $0 $0 $806 $806
Total Recycled Materials Rev. $64,983 $47,710 $94,474 $207,168
% 31% 23% 46% 100.0%
1. Preliminary estimates based on initial tonnage reports.
Material Type
Customer Class|1010|Summary of Recycled Materials Revenues
(Used to Allocate Recycled Materials Revenues in the
Functionalization & Classification Analysis)
Refuse Rate Study – City of Culver City Page 15
Prepared by NBS – May 4, 2015
Appendix Table B-8
Classification of Expenses
FY 2015/16 (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY) (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
20260400 Refuse Disposal Fund - Refuse Collection
Personnel Services
411100 Regular Salaries 1,940,920 $ $288,110 $354,877 $781,781 $6,117 $0 $165,159 $104,448 $240,428 15% 18% 40% 0% 0% 9% 5% 12%
411310 Overtime – Regular 125,599 $ $18,644 $22,964 $50,590 $396 $0 $10,688 $6,759 $15,558 15% 18% 40% 0% 0% 9% 5% 12%
411700 Contract Labor - $ $0 $0 $0 $0 $0 $0 $0 $0 15% 18% 40% 0% 0% 9% 5% 12%
431000 Deferred Compensation 34,973 $ $5,191 $6,394 $14,087 $110 $0 $2,976 $1,882 $4,332 15% 18% 40% 0% 0% 9% 5% 12%
432000 Social Security 141,971 $ $21,074 $25,958 $57,185 $447 $0 $12,081 $7,640 $17,586 15% 18% 40% 0% 0% 9% 5% 12%
433000 Retirement – Employer 351,050 $ $52,110 $64,186 $141,399 $1,106 $0 $29,872 $18,891 $43,486 15% 18% 40% 0% 0% 9% 5% 12%
433500 Retirement – Employee - $ $0 $0 $0 $0 $0 $0 $0 $0 15% 18% 40% 0% 0% 9% 5% 12%
434000 Workers Compensation 191,298 $ $28,396 $34,977 $77,053 $603 $0 $16,278 $10,294 $23,697 15% 18% 40% 0% 0% 9% 5% 12%
435000 Group Insurance 480,943 $ $71,391 $87,935 $193,719 $1,516 $0 $40,925 $25,881 $59,576 15% 18% 40% 0% 0% 9% 5% 12%
435400 Retiree Health Savings 21,613 $ $3,208 $3,952 $8,706 $68 $0 $1,839 $1,163 $2,677 15% 18% 40% 0% 0% 9% 5% 12%
435500 Retiree Insurance 181,991 $ $27,015 $33,275 $73,304 $574 $0 $15,486 $9,794 $22,544 15% 18% 40% 0% 0% 9% 5% 12%
435600 Retiree Medical Prefunding 184,080 $ $27,325 $33,657 $74,145 $580 $0 $15,664 $9,906 $22,803 15% 18% 40% 0% 0% 9% 5% 12%
436000 State Disability Insurance 7,793 $ $1,157 $1,425 $3,139 $25 $0 $663 $419 $965 15% 18% 40% 0% 0% 9% 5% 12%
437000 Mgt Health Ben 520 $ $77 $95 $209 $2 $0 $44 $28 $64 15% 18% 40% 0% 0% 9% 5% 12%
437500 Longevity Pay 2,496 $ $371 $456 $1,005 $8 $0 $212 $134 $309 15% 18% 40% 0% 0% 9% 5% 12%
438500 Cell Phone Allowance 2,028 $ $301 $371 $817 $6 $0 $173 $109 $251 15% 18% 40% 0% 0% 9% 5% 12%
440000 Uniform Allowance 19,240 $ $2,856 $3,518 $7,750 $61 $0 $1,637 $1,035 $2,383 15% 18% 40% 0% 0% 9% 5% 12%
Subtotal: Personnel Services 3,686,514 $ 547,226 $ 674,041 $ 1,484,888 $ 11,618 $ - $ 313,696 $ 198,384 $ 456,661 $ 15% 18% 40% 0% 0% 9% 5% 12%
Maintenance & Operations
512100 Office Expense 2,060 $ 306 $ 377 $ 830 $ 6 $ - $ 175 $ 111 $ 255 $ 15% 18% 40% 0% 0% 9% 5% 12%
512400 Communications 11,907 $ 1,767 $ 2,177 $ 4,796 $ 38 $ - $ 1,013 $ 641 $ 1,475 $ 15% 18% 40% 0% 0% 9% 5% 12%
513000 Utilities - $ - $ - $ - $ - $ - $ - $ - $ - $ 15% 18% 40% 0% 0% 9% 5% 12%
514100 Departmental Special Supplie 41,200 $ 6,116 $ 7,533 $ 16,595 $ 130 $ - $ 3,506 $ 2,217 $ 5,104 $ 15% 18% 40% 0% 0% 9% 5% 12%
516100 Training & Education 2,060 $ 306 $ 377 $ 830 $ 6 $ - $ 175 $ 111 $ 255 $ 15% 18% 40% 0% 0% 9% 5% 12%
516500 Conferences & Conventions 3,090 $ 459 $ 565 $ 1,245 $ 10 $ - $ 263 $ 166 $ 383 $ 15% 18% 40% 0% 0% 9% 5% 12%
516600 Special Events & Meetings 1,030 $ 153 $ 188 $ 415 $ 3 $ - $ 88 $ 55 $ 128 $ 15% 18% 40% 0% 0% 9% 5% 12%
516700 Memberships & Dues 824 $ 122 $ 151 $ 332 $ 3 $ - $ 70 $ 44 $ 102 $ 15% 18% 40% 0% 0% 9% 5% 12%
517500 Contributions to Agencies 19,426 $ 2,884 $ 3,552 $ 7,825 $ 61 $ - $ 1,653 $ 1,045 $ 2,406 $ 15% 18% 40% 0% 0% 9% 5% 12%
600200 R&M – Equipment 30,900 $ 4,587 $ 5,650 $ 12,446 $ 97 $ - $ 2,629 $ 1,663 $ 3,828 $ 15% 18% 40% 0% 0% 9% 5% 12%
600800 Equip Maint Expenses 1,390,294 $ 206,375 $ 254,201 $ 559,995 $ 4,382 $ - $ 118,304 $ 74,816 $ 172,220 $ 15% 18% 40% 0% 0% 9% 5% 12%
605400 Amortization of Equipment 447,663 $ 66,451 $ 81,850 $ 180,314 $ 1,411 $ - $ 38,093 $ 24,090 $ 55,453 $ 15% 18% 40% 0% 0% 9% 5% 12%
614100 Medical Services 1,030 $ 153 $ 188 $ 415 $ 3 $ - $ 88 $ 55 $ 128 $ 15% 18% 40% 0% 0% 9% 5% 12%
619800 Other Contractual Services 434,660 $ - $ 358,333 $ 29,333 $ - $ - $ 46,993 $ - $ - $ 0% 82% 7% 0% 0% 11% 0% 0%
650200 Insurance Premiums – Other 37,693 $ 5,595 $ 6,892 $ 15,182 $ 119 $ - $ 3,207 $ 2,028 $ 4,669 $ 15% 18% 40% 0% 0% 9% 5% 12%
650300 Liability Reserve Charge 86,049 $ 12,773 $ 15,733 $ 34,660 $ 271 $ - $ 7,322 $ 4,631 $ 10,659 $ 15% 18% 40% 0% 0% 9% 5% 12%
670100 Administrative Charges 1,644,595 $ 244,124 $ 300,697 $ 662,425 $ 5,183 $ - $ 139,943 $ 88,501 $ 203,721 $ 15% 18% 40% 0% 0% 9% 5% 12%
690200 R&M Equipment Contra - $ - $ - $ - $ - $ - $ - $ - $ - $ 15% 18% 40% 0% 0% 9% 5% 12%
690800 Equip Maint Exp/Improve – Co - $ - $ - $ - $ - $ - $ - $ - $ - $ 15% 18% 40% 0% 0% 9% 5% 12%
Subtotal: Maintenance & Operations 4,154,480 $ 552,170 $ 1,038,464 $ 1,527,637 $ 11,723 $ - $ 363,524 $ 200,176 $ 460,786 $ 13% 25% 37% 0% 0% 9% 5% 11%
Capital Outlay
732120 Departmental Special Equipm 103,000 $ 15,289 $ 18,832 $ 41,487 $ 325 $ - $ 8,765 $ 5,543 $ 12,759 $ 15% 18% 40% 0% 0% 9% 5% 12%
793230 Departmental Special Equipm - $ - $ - $ - $ - $ - $ - $ - $ - $ 15% 18% 40% 0% 0% 9% 5% 12%
Subtotal: Capital Outlay 103,000 $ 15,289 $ 18,832 $ 41,487 $ 325 $ - $ 8,765 $ 5,543 $ 12,759 $ 15% 18% 40% 0% 0% 9% 5% 12%
TOTAL: REFUSE COLLECTION OPER 7,943,994 $ 1,114,685 $ 1,731,337 $ 3,054,012 $ 23,666 $ - $ 685,985 $ 404,103 $ 930,206 $ 14% 22% 38% 0% 0% 9% 5% 12%
Table COSA-1
Functionalization & Classification of Budget Costs to Customer Classes and Programs
Budget Categories
Total Revenue
Requirements
General &
Adm in.
Residential
Collection
Transfer
Station
Commercial
Recycling Roll-Off
Residential
Recycling Disposal
Commercial
Collection
Allocated Costs
Commercial
Collection
Transfer
Station Disposal Roll-Off
Residential
Recycling
Basis of Allocations
General &
Adm in.
Residential
Collection
Commercial
Recycling
(Personnel costs were allocated based on detailed staffing cost analysis)Refuse Rate Study – City of Culver City Page 16
Prepared by NBS – May 4, 2015
Appendix Table B-9
Classification of Expenses
FY 2015/16 (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY) (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
20260410 Refuse Disposal Fund - Transfer Station
Personnel Services
411100 Regular Salaries 445,130 $ $0 $15,777 $22,087 $361,739 $0 $26,285 $10,959 $8,283 0% 4% 5% 81% 0% 6% 2% 2%
411310 Overtime – Regular 38,189 $ $0 $1,354 $1,895 $31,034 $0 $2,255 $940 $711 0% 4% 5% 81% 0% 6% 2% 2%
431000 Deferred Compensation 3,245 $ $0 $115 $161 $2,637 $0 $192 $80 $60 0% 4% 5% 81% 0% 6% 2% 2%
432000 Social Security 33,196 $ $0 $1,177 $1,647 $26,977 $0 $1,960 $817 $618 0% 4% 5% 81% 0% 6% 2% 2%
433000 Retirement – Employer 80,742 $ $0 $2,862 $4,006 $65,616 $0 $4,768 $1,988 $1,502 0% 4% 5% 81% 0% 6% 2% 2%
433500 Retirement – Employee - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 4% 5% 81% 0% 6% 2% 2%
434000 Workers Compensation 39,310 $ $0 $1,393 $1,951 $31,946 $0 $2,321 $968 $731 0% 4% 5% 81% 0% 6% 2% 2%
435000 Group Insurance 106,408 $ $0 $3,771 $5,280 $86,473 $0 $6,283 $2,620 $1,980 0% 4% 5% 81% 0% 6% 2% 2%
435400 Retiree Health Savings 5,408 $ $0 $192 $268 $4,395 $0 $319 $133 $101 0% 4% 5% 81% 0% 6% 2% 2%
435500 Retiree Insurance 21,658 $ $0 $768 $1,075 $17,601 $0 $1,279 $533 $403 0% 4% 5% 81% 0% 6% 2% 2%
435600 Retiree Medical Prefunding 39,520 $ $0 $1,401 $1,961 $32,116 $0 $2,334 $973 $735 0% 4% 5% 81% 0% 6% 2% 2%
436000 State Disability Insurance 2,042 $ $0 $72 $101 $1,659 $0 $121 $50 $38 0% 4% 5% 81% 0% 6% 2% 2%
438500 Cell Phone Allowance 676 $ $0 $24 $34 $549 $0 $40 $17 $13 0% 4% 5% 81% 0% 6% 2% 2%
440000 Uniform Allowance 5,928 $ $0 $210 $294 $4,817 $0 $350 $146 $110 0% 4% 5% 81% 0% 6% 2% 2%
Subtotal: Personnel Services 821,451 $ - $ 29,115 $ 40,761 $ 667,559 $ - $ 48,507 $ 20,224 $ 15,285 $ 0% 4% 5% 81% 0% 6% 2% 2%
Maintenance & Operations
512400 Communications - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 4% 5% 81% 0% 6% 2% 2%
513000 Utilities 26,250 $ $0 $930 $1,303 $21,332 $0 $1,550 $646 $488 0% 4% 5% 81% 0% 6% 2% 2%
514100 Departmental Special Supplie 15,450 $ $0 $548 $767 $12,556 $0 $912 $380 $287 0% 4% 5% 81% 0% 6% 2% 2%
516500 Conferences & Conventions - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 4% 5% 81% 0% 6% 2% 2%
516700 Memberships & Dues 206 $ $0 $7 $10 $167 $0 $12 $5 $4 0% 4% 5% 81% 0% 6% 2% 2%
600100 R&M – Building 10,300 $ $0 $365 $511 $8,370 $0 $608 $254 $192 0% 4% 5% 81% 0% 6% 2% 2%
600200 R&M – Equipment - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 4% 5% 81% 0% 6% 2% 2%
600800 Equip Maint Expenses 100,580 $ $0 $3,565 $4,991 $81,737 $0 $5,939 $2,476 $1,872 0% 4% 5% 81% 0% 6% 2% 2%
605200 Rental of Land 80,340 $ $0 $2,847 $3,986 $65,289 $0 $4,744 $1,978 $1,495 0% 4% 5% 81% 0% 6% 2% 2%
605400 Amortization of Equipment 56,913 $ $0 $2,017 $2,824 $46,251 $0 $3,361 $1,401 $1,059 0% 4% 5% 81% 0% 6% 2% 2%
615100 Refuse Disp Services – Trash 2,060,000 $ $0 $0 $0 $0 $2,060,000 $0 $0 $0 0% 0% 0% 0% 100% 0% 0% 0%
619800 Other Contractual Services 499,550 $ $0 $0 $0 $0 $499,550 $0 $0 $0 0% 0% 0% 0% 100% 0% 0% 0%
650300 Liability Reserve Charge 17,683 $ $0 $627 $877 $14,370 $0 $1,044 $435 $329 0% 4% 5% 81% 0% 6% 2% 2%
665100 Depreciation (4) - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 4% 5% 81% 0% 6% 2% 2%
670100 Administrative Charges - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 4% 5% 81% 0% 6% 2% 2%
699800 Other Contractual Services – - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 4% 5% 81% 0% 6% 2% 2%
Subtotal: Maintenance & Operations 2,867,271 $ - $ 10,907 $ 15,269 $ 250,072 $ 2,559,550 $ 18,171 $ 7,576 $ 5,726 $ 0% 0% 1% 9% 89% 1% 0% 0%
Capital Outlay
710100 Land Acquisition Costs - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
791010Land - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
793252 IT Equipment – Server/Softwa - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
Subtotal: Capital Outlay - $ - $ - $ - $ - $ - $ - $ - $ - $ 0% 0% 0% 0% 0% 0% 0% 0%
Debt Services
810100 Bond Principal Payments - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
810400 Loan Principal Payments 124,832 $ $0 $0 $0 $124,832 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
820400 Loan Interest Payments 38,798 $ $0 $0 $0 $38,798 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
Subtotal: Debt Services 163,630 $ - $ - $ - $ 163,630 $ - $ - $ - $ - $ 0% 0% 0% 100% 0% 0% 0% 0%
TOTAL: TRANSFER STATION OPERAT 3,852,352 $ - $ 40,021 $ 56,030 $ 1,081,261 $ 2,559,550 $ 66,678 $ 27,801 $ 21,011 $ 0% 1% 1% 28% 66% 2% 1% 1%
Budget Categories
Total Revenue
Requirements
General &
Adm in.
Transfer
Station
(Personnel costs were allocated based on detailed staffing cost analysis)
General &
Adm in.
Residential
Collection
Commercial
Collection
Transfer
Station
Residential
Collection
Commercial
Recycling Roll-Off Disposal
Commercial
Collection
Residential
Recycling
Allocated Costs Basis of Allocations
Disposal Roll-Off
Residential
Recycling
Commercial
RecyclingRefuse Rate Study – City of Culver City Page 17
Prepared by NBS – May 4, 2015
Appendix Table B-10
Classification of Expenses
FY 2015/16 (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY) (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
20260430 Refuse Disposal Fund - Recycling
Personnel Services
411100 Regular Salaries 128,409 $ $128,409 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
411200 Part Time Salaries 11,073 $ $11,073 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
431000 Deferred Compensation 4,326 $ $4,326 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
432000 Social Security 8,530 $ $8,530 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
433000 Retirement – Employer 19,225 $ $19,225 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
433500 Retirement – Employee - $ $0 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
434000 Workers Compensation 10,773 $ $10,773 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
435000 Group Insurance 8,455 $ $8,455 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
435400 Retiree Health Savings 676 $ $676 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
435500 Retiree Insurance 3,584 $ $3,584 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
435600 Retiree Medical Prefunding 10,400 $ $10,400 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
436000 State Disability Insurance 16 $ $16 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
437000 Mgt Health Ben 520 $ $520 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
Subtotal: Personnel Services 205,988 $ 205,988 $ - $ - $ - $ - $ - $ - $ - $ 100% 0% 0% 0% 0% 0% 0% 0%
Maintenance & Operations
512100 Office Expense 515 $ $515 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
512200 Printing & Binding - $ $0 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
514100 Departmental Special
Supplies 5,150 $ $5,150 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
516100 Training & Education 1,030 $ $1,030 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
516500 Conferences & Conventions 1,030 $ $1,030 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
516600 Special Events & Meetings 1,030 $ $1,030 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
516700 Memberships & Dues 515 $ $515 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
517300 Advertising and Public
Relations 5,150 $ $5,150 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
610400 Consulting Services - $ $0 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
650300 Liability Reserve Charge 4,846 $ $4,846 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
670100 Administrative Charges - $ $0 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
Subtotal: Maintenance & Operations 19,266 $ 19,266 $ - $ - $ - $ - $ - $ - $ - $ 100% 0% 0% 0% 0% 0% 0% 0%
Capital Outlay
732120 Departmental Special
Equipment - $ $0 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
Subtotal: Capital Outlay - $ - $ - $ - $ - $ - $ - $ - $ - $ 0% 0% 0% 0% 0% 0% 0% 0%
TOTAL: RECYCLING OPERATING EXP 225,254 $ 225,254 $ - $ - $ - $ - $ - $ - $ - $ 100% 0% 0% 0% 0% 0% 0% 0%
GRAND TOTAL: REFUSE DISPOSAL F 12,021,601 $ 1,339,939 $ 1,771,358 $ 3,110,042 $ 1,104,928 $ 2,559,550 $ 752,663 $ 431,904 $ 951,217 $ 11% 15% 26% 9% 21% 6% 4% 8%
Budget Categories
Total Revenue
Requirements Roll-Off
Residential
Recycling
Commercial
Recycling Roll-Off
Basis of Allocations
General &
Adm in.
Residential
Collection
Transfer
Station Disposal
Commercial
Recycling
Allocated Costs
Commercial
Collection
Residential
Recycling
General &
Adm in.
Residential
Collection
Commercial
Collection
Transfer
Station Disposal
(Personnel costs were allocated based on detailed staffing cost analysis)Refuse Rate Study – City of Culver City Page 18
Prepared by NBS – May 4, 2015
Appendix Table B-11
Classification of Expenses, continued
FY 2015/16 (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY) (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
Debt Service Payments
Outstanding Debt 163,629 $ $0 $32,726 $32,726 $32,726 $16,363 $16,363 $16,363 $16,363 0% 20% 20% 20% 10% 10% 10% 10%
New Debt Issue - SRF Loan - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
New Debt Issue - Revenue Bond - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
Total Debt Service Payments 163,629 $ - $ 32,726 $ 32,726 $ 32,726 $ 16,363 $ 16,363 $ 16,363 $ 16,363 $ 0.0% 20.0% 20.0% 20.0% 10.0% 10.0% 10.0% 10.0%
Capital Expenditures
Rate Funded Capital Expenses - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
TOTAL REVENUE REQUIREMENTS 12,185,230 $ 1,339,939 $ 1,804,084 $ 3,142,767 $ 1,137,653 $ 2,575,913 $ 769,026 $ 448,266 $ 967,580 $ 11.0% 14.8% 25.8% 9.3% 21.1% 6.3% 3.7% 7.9%
Less: Non-Rate Revenues
333500 Recycling Plan Permit Fee (7,000) $ $0 $0 $0 $0 $0 $0 $0 ($7,000) 0% 0% 0% 0% 0% 0% 0% 100%
339140 CNG Excise Tax Credit - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 60% 0% 5% 5% 15% 0% 15%
343500 Dept/Conservation-
Recycling (2) (10,000) $ $0 $0 $0 $0 $0 $0 ($4,000) ($6,000) 0% 0% 0% 0% 0% 0% 40% 60%
343530 Beverage Container
Recycling - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 0% 0% 0% 0% 100%
352600 Interest & Penalties (351,049) $ ($38,603) ($51,975) ($90,541) ($32,775) ($74,210) ($22,155) ($12,914) ($27,875) 11% 15% 26% 9% 21% 6% 4% 8%
352700 Special Services - $ $0 $0 $0 $0 $0 $0 $0 $0 0% 100% 0% 0% 0% 0% 0% 0%
352900 Sale of Recycle Items (207,168) $ $0 ($64,983) ($47,710) $0 $0 ($94,474) $0 $0 0% 31% 23% 0% 0% 46% 0% 0%
352900 LA City Fees for TS Use (300,000) $ $0 $0 $0 ($300,000) $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
382000 Interest Income (34,000) $ ($3,739) ($5,034) ($8,769) ($3,174) ($7,187) ($2,146) ($1,251) ($2,700) 11% 15% 26% 9% 21% 6% 4% 8%
382010 Net Incr/Decr Fair Val Inve - $ $0 $0 $0 $0 $0 $0 $0 $0 11% 15% 26% 9% 21% 6% 4% 8%
386100 Miscellaneous Revenue - $ $0 $0 $0 $0 $0 $0 $0 $0 11% 15% 26% 9% 21% 6% 4% 8%
386100 Miscellaneous Revenue - $ $0 $0 $0 $0 $0 $0 $0 $0 11% 15% 26% 9% 21% 6% 4% 8%
386100 Miscellaneous Revenue - $ $0 $0 $0 $0 $0 $0 $0 $0 11% 15% 26% 9% 21% 6% 4% 8%
386300 Sale of Property - $ $0 $0 $0 $0 $0 $0 $0 $0 11% 15% 26% 9% 21% 6% 4% 8%
Total Non-Rate Revenues (909,217) $ (42,342) $ (121,992) $ (147,021) $ (335,949) $ (81,398) $ (118,775) $ (18,165) $ (43,575) $
NET REVENUE REQUIREMENTS 11,276,013 $ 1,297,597 $ 1,682,092 $ 2,995,747 $ 801,704 $ 2,494,515 $ 650,251 $ 430,101 $ 924,005 $
Allocation of Revenue Requirements 100.0% 11.5% 14.9% 26.6% 7.1% 22.1% 5.8% 3.8% 8.2%
Revenue Reqt. Check from Financial Plan 11,276,013 $
Classification of Expenses, continued
Adjustments to Classification of Expenses
Adjustment for Current Rate Level: Total (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
FY 2015/16 Target Rate Rev. After Rate $11,487,649
Projected Rate Revenue at Current Rate $11,153,057
FY 2015/16 Projected Rate Increase 3.0%
Adjusted Net Revenue Req'ts 11,487,649 $ 1,321,952 $ 1,713,663 $ 3,051,973 $ 816,751 $ 2,541,334 $ 662,455 $ 438,174 $ 941,347 $ 11,487,649 $
Percent of Revenue 11.5% 14.9% 26.6% 7.1% 22.1% 5.8% 3.8% 8.2% 100.0%
Residential
Collection
Transfer
Station Budget Categories
Total Revenue
Requirements
General &
Adm in.
Allocated Costs
Commercial
Collection
Residential
Recycling Roll-Off
Commercial
Recycling Disposal
Transfer
Station
Basis of Allocations
Disposal Roll-Off
Residential
Recycling
Commercial
Recycling
General &
Adm in.
Residential
Collection
Commercial
CollectionRefuse Rate Study – City of Culver City Page 19
Prepared by NBS – May 4, 2015
Appendix Table B-12
Appendix Table B-13
(G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
Refuse Collection $547,226 $674,041 $1,484,888 $11,618 $0 $313,696 $198,384 $456,661 $3,686,514
Transfer Station $0 $29,115 $40,761 $667,559 $0 $48,507 $20,224 $15,285 $821,451
Recycling $205,988 $0 $0 $0 $0 $0 $0 $0 $205,988
Total Personnel Costs $753,214 $703,155 $1,525,648 $679,178 $0 $362,204 $218,608 $471,946 $4,713,953
Resid.
Recycling
Comm.
Collection
Allocated Personnel (Costs)
Staffing Costs by Division
Total
General &
Adm in.
Resid.
Collection
Transfer
Station Disposal Roll-Off
Comm.
Recycling
(G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY) (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
60400 Administrative clerk/RPT 0.98 3% $113,860 $113,860 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
60400 Associate Analyst 1.00 3% $116,184 $116,184 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
60400 Clerk/Typist/RPT 0.98 3% $113,860 $113,860 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
60400 Environmental Prog. & Ops. Mgr 0.60 2% $69,710 $69,710 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
60400 Management Analyst 0.15 0% $17,428 $17,428 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
60400 Roll-off Driver 2.00 6% $232,368 $0 $0 $0 $0 $0 $232,368 $0 $0 0% 0% 0% 0% 0% 100% 0% 0%
60400 Sanitation Crew Supervisor 1.00 3% $116,184 $0 $0 $58,092 $0 $0 $46,474 $0 $11,618 0% 0% 50% 0% 0% 40% 0% 10%
60400 Sanitation Dispatcher 1.00 3% $116,184 $0 $11,618 $34,855 $11,618 $0 $34,855 $5,809 $17,428 0% 10% 30% 10% 0% 30% 5% 15%
60400 Sanitation Driver (2) 10.00 32% $1,161,839 $0 $487,972 $325,315 $0 $0 $0 $174,276 $174,276 0% 42.0% 28.0% 0% 0% 0% 15% 15.0%
60400 Sanitation Driver/RPT 2.94 9% $341,581 $0 $34,158 $153,711 $0 $0 $0 $0 $153,711 0% 10.0% 45.0% 0% 0% 0% 0% 45.0%
60400 Scout Vehicle Operator 7.00 22% $813,287 $0 $121,993 $609,965 $0 $0 $0 $0 $81,329 0% 15% 75% 0% 0% 0% 0% 10%
60400 Scout Vehicle Operator/RPT (3) 2.45 8% $284,650 $0 $0 $284,650 $0 $0 $0 $0 $0 0% 0% 100% 0% 0% 0% 0% 0%
60400 Solid Waste & Recycling Ops. Mgr 1.00 3% $116,184 $116,184 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
60400 Warehouse Wrkr/Dlvry Drvr 0.63 2% $73,196 $0 $18,299 $18,299 $0 $0 $0 $18,299 $18,299 0% 25% 25% 0% 0% 0% 25% 25%
Refuse Collection Division Tota 31.73 100% $3,686,514 $547,226 $674,041 $1,484,888 $11,618 $0 $313,696 $198,384 $456,661 15% 18% 40% 0% 0% 9% 5% 12%
Positions % FTEs Costs (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY) (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
60410 Heavy Equipment Operator (2) 2.00 25% $207,962 $0 $0 $0 $207,962 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
60410 Heavy Equipment Operator/RPT 0.98 12% $101,902 $0 $0 $0 $101,902 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
60410 Laborer/RPT 2.94 37% $305,705 $0 $0 $0 $305,705 $0 $0 $0 $0 0% 0% 0% 100% 0% 0% 0% 0%
60410 Sanitation Crew Supervisor 1.00 13% $103,981 $0 $29,115 $0 $51,991 $0 $5,199 $17,677 $0 0% 28.0% 0.0% 50.0% 0.0% 5.0% 17.0% 0.0%
60410 Welder/RPT 0.98 12% $101,902 $0 $0 $40,761 $0 $0 $43,308 $2,548 $15,285 0% 0% 40% 0% 0% 42.5% 2.5% 15%
Transfer Station Division Total 7.90 100% $821,451 $0 $29,115 $40,761 $667,559 $0 $48,507 $20,224 $15,285 0% 4% 5% 81% 0% 6% 2% 2%
Positions % FTEs Costs (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY) (G&A) (RCOL) (CCOL) (TS) (DISP) (RO) (RRECY) (CRECY)
60430 Environmental Coordinator 1.00 59% $122,415 $122,415 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
60430 Administrative Intern (hours)(4) 0.43 26% $52,968 $52,968 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
60430 Sr. Management Analyst 0.25 15% $30,604 $30,604 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
Recycling Division Total 1.68 100% $205,988 $205,988 $0 $0 $0 $0 $0 $0 $0 100% 0% 0% 0% 0% 0% 0% 0%
Total Position 41.31 $4,713,953 $753,214 $703,155 $1,525,648 $679,178 $0 $362,204 $218,608 $471,946 16% 15% 32% 14% 0% 8% 5% 10%
(1) Positions by Division sourced from the City of Culver City's Adopted FY 2014/15 Budget, beginning page 392.
(2) Reclass one (1) Sanitation Driver (20260400) to Heavy Equipment Operator (20260410).
(3) Add (0.49) Scout Vehicle Operator/RPT. Remainder of (0.49) position to be funded by Transit.
(4) Converted from 900 part-time hours.
Resid.
Collection
Comm.
Recycling Disposal
General &
Adm in.
FY
2014/15
Positions
% of FTE
Total
Allocated Personnel Costs (Percentages)
Comm.
Collection
Resid.
Recycling
Comm.
Collection
Resid.
Recyclin Roll-Off Roll-Off
Resid.
Collection
Transfer
Station
Comm.
Recyclin Disposal
General &
Adm in.
Refuse Collection - 6040
Transfer Station
Recycling
Staffing Costs -
Regular Positions (1)
Total Costs
(based on
FTE's)
Allocated Personnel (Costs)
Transfer
Station
Refuse Rate Study – City of Culver City Page 20
Prepared by NBS – May 4, 2015
APPENDIX C – Rate Design Analysis Tables
Appendix Table C-1
Appendix Table C-2
Summary of Current Residential Refuse Service Charges
Calendar Year 2014
Residential Service
Resid. $29.30 /mo. Residential Automated Collection 113,316 Units $3,320,159
Resid. 10000 $29.30 /mo. Can Service - Residential 544 Units $15,939
Comm. 10004 $26.64 /mo. Can Service - Commercial 296 Units $7,879
114,156 $3,343,977
Resid. 10005 $5.00 /mo. 275 Units $1,375
114,431 $3,345,352
Type of
Service
Code Unit Price
Extra Auto Can - Refuse
Subtotal Residential
Total Residential
Units
Basis for
Charge
Type of Service
Annual
Revenue
Calculation of New Residential Refuse Service - Monthly Charges
Allocated Costs $2,151,837 $190,669 $590,907 $648,187 $3,581,601
Resid. Automated Collection|1010|113,316 $2,132,465 $189,267 $586,561 $643,419 $3,551,712
Can Service - Residential 544 $10,237 $909 $2,816 $3,089 $17,051
Can Service - Commercial |1010|266 $5,009 $494 $1,531 $1,679 $8,713
Add'l Automated Collection - Can|1010|275 $4,125 $0 $0 $0 $4,125
114,126 $2,151,837 $190,669 $590,907 $648,187 $3,581,601
Residential Rate ($/mo.) $31.38
Commercial Can Service $28.24
$15.00
1. Includes refuse, yardwaste and recyclables collection.
2. Only refuse collection. Since no recycling/yardwaste subsidies are applied to commercial service, the current rate differential of 90% of the residential
service is applied, which NBS believes is a reasonable estimate.
3. Second can for refuse collection at existing customer site. Does not include yardwaste or recycling service.
Total
Extra Auto Can - Refuse|1010|Residential Service
Allocated Costs (from Cost-of-Service Analysis) Units
(no. of Monthly
charges)
Collection
Costs
TS
Costs
Disposal
Costs
G&A
Costs Total
Refuse Rate Study – City of Culver City Page 21
Prepared by NBS – May 4, 2015
Appendix Table C-3
Allocated Costs $3,051,973 $553,552 $376,084 $1,172,053 $941,347 $6,095,009
Allocation Basis % Change
Scheduled Commercial (Bin) Service
2-CY Sched Refuse (1x/week) 4,771 20,674 41,349 8.83% $307,253 $58,153 $27,919 $99,059 $69,882 $562,266 $117.85 $113.90 3.5%
3-CY Sched Refuse (1x/week) 30,237 131,026 393,079 83.98% $2,035,897 $385,330 $277,493 $984,570 $694,570 $4,377,861 $144.79 $139.92 3.5%
3-CY Sched Refuse (300g) (1x/week) 12 52 156 0.03% $808 $153 $110 $391 $276 $1,737 $144.79 $139.92 3.5%
Unscheduled/One-time/On-Call Commercial (Bin) Service
2-CY Call/Extra Pickup - Refuse 271 271 542 0.12% $4,248 $804 $386 $1,370 $966 $7,774 $28.69 $27.77 3.3%
3-CY Call/Extra Pickup - Refuse 1,697 1,697 5,091 1.09% $33,970 $6,429 $4,630 $16,428 $11,589 $73,048 $43.05 $41.67 3.3%
2-CY Collection (On-Call Residential) 72 72 144 0.03% $1,129 $214 $103 $364 $257 $2,065 $28.69 $27.77 3.3%
3-CY Collection (On-Call Residential) 1,869 1,869 5,607 1.20% $37,413 $7,081 $5,099 $18,093 $12,764 $80,451 $43.05 $41.67 3.3%
Yardwaste/Composting Commercial (Bin) Service
2-CY Sched. Yard Waste 24 104 208 0.07% $820 $155 $75 $426 $187 $1,662 $69.26 $43.29 60.0%
3-CY Sched. Yard Waste 882 3,821 11,464 3.94% $26,366 $4,990 $3,594 $20,518 $8,995 $64,464 $73.10 $45.69 60.0%
2-CY Call Yard Waste 22 4 0.00% $15 $3 $1 $8 $3 $30 $15.02 $8.33 80.3%
3-CY Call Organic/Yard Waste 197 197 591 0.14% $1,523 $288 $208 $820 $519 $3,358 $17.05 $9.05 88.4%
Recycling Commercial (Bin) Service
Can Service - Recyclables 890 3,855 3,855 0.00% $35,909 $6,796 $1,631 $0 $4,084 $48,421 $12.56 $12.56 0.0%
2-CY Sched. & MFR Mixed Recycle 696 3,018 6,036 0.00% $57,934 $10,965 $5,264 $0 $13,177 $87,340 $28.94 $28.94 0.0%
3-CY Sched Comm./MFR Recycle 4,684 20,298 60,893 0.00% $373,501 $70,692 $50,908 $0 $127,424 $622,525 $30.67 $30.67 0.0%
2-CY Call Recycle 103 103 206 0.00% $452 $85 $41 $0 $103 $681 $6.61 $6.61 0.0%
3-CY Call Recycle 339 339 1,017 0.00% $1,458 $276 $199 $0 $498 $2,431 $7.17 $7.17 0.0%
Waste-to-Energy Commercial (Bin) Service
3-CY Sched Waste-to-Energy 204 884 2,652 0.57% $6,001 $1,136 -$1,577 $30,007 -$3,946 $31,620 $155.00 $139.92 10.8%
Miscellaneous Services
Bin Rental - 2 & 3 CY Bins ($/mo.) 2,352 NA NA 0.00% $112,896 N.A. N.A. N.A. N.A. $112,896 $48.00 $46.31 3.6%
Scheduled Miss Stop 396 396 NA 0.00% $0 N.A. N.A. N.A. N.A. $0 $0 $0 0.0%
2-CY Temp Del/Rem 22 22 44 0.00% $189 N.A. N.A. N.A. N.A. $189 $8.58 $8.33 3.0%
3-CY Temp Del/Rem 1,654 1,654 4,962 0.00% $14,191 N.A. N.A. N.A. N.A. $14,191 $8.58 $8.33 3.0%
Total Commercial Revenue/Year 46,950 188,282 532,893 100% $3,051,973 $553,552 $376,084 $1,172,053 $941,347 $6,095,009 NA
1. Adjusted volume to account for actual disposal cost ($/ton) and recycling materials credits. The disposal costs allocated to commercial customers are fully recovered.
2. Disposal costs are allocated based on the adjusted volume percentages.
Number of Units (No. of Lifts)
Number
Actual
Lifts
Volume
(CY)
% Adjusted
Volume|1010|Disposal
Costs|1010|Calculation of Commercial (Bin) Refuse Service - Scheduled Monthly & One-Time Rates
Recycling
Costs Total
Actual Lifts Volume of Lifts
Current Refuse
Rates
($/mo. or call)
Level-of-Service
Allocated Costs (from Cost-of-Service Analysis)
Calculated
New Refuse
Rates
($/mo. or call)
Collection
Costs
G&A
Costs
TS
CostsRefuse Rate Study – City of Culver City Page 22
Prepared by NBS – May 4, 2015
Appendix Table C-4
Adjustments to Tonnage to Account for Different Commercial Disposal Costs
Scheduled Commercial (Bin) Service
2-CY Sched Refuse 41,349 42,176
$30.20 Landfill NA
42,176 8.83%
3-CY Sched Refuse (1x/week)
393,079 400,940
$30.20 Landfill NA
400,940 83.98%
3-CY Sched Refuse (300g) 156 159
$30.20 Landfill NA
159 0.03%
Unscheduled/One-time/On-Call Commercial (Bin) Service
2-CY Call Refuse (On-Call Commercial)
542 553
$30.20 Landfill NA
553 0.12%
3-CY Call Refuse 5,091 5,193
$30.20 Landfill NA
5,193 1.09%
2-CY Collection (On-Call Residential)
144 147
$30.20 Landfill NA
147 0.03%
3-CY Collection Trash (Residential) 5,607 5,719
$30.20 Landfill NA
5,719 1.20%
Yardwaste/Composting Commercial (Bin) Service
2-CY Sched. Yard Waste 208 212
$47.00 Victorville Compost NA
341 0.07%
3-CY Sched. Yard Waste 11,460 11,690
$47.00 Victorville Compost NA
18,815 3.94%
2-CY Call Yard Waste 44
$47.00 Victorville Compost NA
7 0.00%
3-CY Call Yard Waste 409 417
$47.00 Victorville Compost NA
671 0.14%
Recycling Commercial (Bin) Service
Can Service - Recyclables 7,710 7,865
NA Mixed Recyclable (6) $30.00
0 0.00%
2-CY Sched. & MFR Mixed Recycle 6,036 6,157
NA Mixed Recyclable (6) $30.00
0 0.00%
3-CY Sched Comm./MFR Recycle 60,893 62,110
NA Mixed Recyclable (6) $30.00
0 0.00%
2-CY Call Recycle 206 210
NA Mixed Recyclable (6) $30.00
0 0.00%
3-CY Call Recycle 1,017 1,037
NA Mixed Recyclable (6) $30.00
0 0.00%
Waste-to-Energy Commercial (Bin) Service
3-CY Sched Waste-to-Energy 2,652 2,705
$57.00 WTE/Long Beach NA
2,705 0.57%
536,563 547,294 100.00%
Recycled
Materials
Revenue
($/ton)
Adjusted
Volume
% of
Total
Disposal Facility Cost ($/ton)
2014 Volume
(CY) Adjusted
to 2015 (2%
Increase)
Volume
(2014 CY)
Adjusted Volume
Level-of-ServiceRefuse Rate Study – City of Culver City Page 23
Prepared by NBS – May 4, 2015
Appendix Table C-5
Calculation of Drop Box Refuse Service - Scheduled Monthly & One-Time Rates
(Empties
or Tons)
Drop Box Collection Only (Empties)
Allocated Costs N.A. N.A. N.A. $507,211 $507,211 % change
DB 8-CY Empty 399 empties N.A. N.A. N.A. N.A. N.A. $66,725 $66,725 $167.23 $162.36 /empty 3.0%
DB 30-CY Empty 7 empties N.A. N.A. N.A. N.A. N.A. $1,171 $1,171 $167.23 $162.36 /empty 3.0%
DB 40-CY Empty 1,653 empties N.A. N.A. N.A. N.A. N.A. $276,433 $276,433 $167.23 $162.36 /empty 3.0%
DB 50-CY Empty 43 empties N.A. N.A. N.A. N.A. N.A. $7,191 $7,191 $167.23 $162.36 /empty 3.0%
DB Compactor Empty 931 empties N.A. N.A. N.A. N.A. N.A. $155,692 $155,692 $167.23 $162.36 /empty 3.0%
Total 3,033 empties N.A. N.A. N.A. N.A. N.A. $507,211 $507,211
Drop Box Tonnage Only
Allocated Costs|1010|$197,835 $327,619 $933,618 N.A. $1,459,072
Allocation Basis % of Tonnage % of Tonnage Adj. % of Tons|1010|N.A.
Refuse/MSW
Tonnage Refuse Mixed 10,917 tons 64.81% 52.76% $139,942 $231,747 $537,697 $0 $909,386 $83.30 $80.87 /ton 3.0%
Construction/Demolition Recycled Materials
Tonnage Metal 18 tons 0.11% 0.00% $150 $249 $0 $0 $399 $22.16 $11.19 /ton 98.0%
Tonnage Asphalt /Concrete 1,877 tons 11.14% 14.83% $13,657 $22,617 $85,793 $0 $122,067 $65.05 $46.22 /ton 40.7%
Tonnage Wood 181 tons 1.07% 1.43% $1,841 $3,048 $11,564 $0 $16,453 $90.90 $51.84 /ton 75.3%
Tonnage Other Inert 1,829 tons 10.86% 14.45% $13,311 $22,043 $83,617 $0 $118,970 $65.05 $51.84 /ton 25.5%
Tonnage C&D Recycle 356 tons 2.11% 2.81% $3,621 $5,996 $22,744 $0 $32,360 $90.90 $80.87 /ton 12.4%
Yardwaste & Compost Materials
Tonnage Yard Waste 657 tons 3.90% 4.78% $5,482 $9,078 $31,728 $0 $46,287 $70.45 $51.84 /ton 35.9%
Waste-to-Energy & Special Compactor
Tonnage Waste-To-Energy (MSW) 1,011 tons 6.00% 8.93% $8,435 $13,969 $83,345 $0 $105,748 $104.60 $95.87 /ton 9.1%
Compactor Variable Restaurant (special) 55 N.A. N.A. $1,133 $1,876 $5,347 $0 $8,356 $151.41 $147.00 /mo. 3.0%
Miscellaneous Fee & Charges
DB Monthly Rental ($/mo.) 671
N.A. N.A. N.A. N.A. N.A. N.A. $99,046 $147.61 $143.31 /mo. 3.0%
DB Delivery 439
N.A. N.A. N.A. N.A. N.A. N.A.
$0 $0.00 $0.00 /empty 0.0%
DB Respot 0
N.A. N.A. N.A. N.A. N.A. N.A.
$0 $37.49 $36.40 /empty 3.0%
Total 16,846 tons 100% 100% $186,438 $308,746 $856,487 $0 $1,459,072
Additional/Penalty Charges (for Tonnages Exceeding 11 tons: Includes Base Rate & Penalty)|1010|Tonnage Refuse Mixed +11T
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
$124.95 $161.74 /ton -22.7%
Tonnage Metal +11T
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
$33.24 N.A. /ton N.A.
Tonnage Asphalt +11T
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
$97.57 $92.44 /ton 5.5%
Tonnage Wood +11T
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
$136.35 $103.68 /ton 31.5%
Tonnage All Inerts +11T
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
$97.57 $103.68 /ton -5.9%
Tonnage C&D Recycle
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
$136.35 N.A. /ton N.A.
Tonnage Yard Waste + 11T
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
$105.68 $103.68 /ton 1.9%
Tonnage Waste-To-Energy + 11T
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
$156.90 $191.74 /ton -18.2%
1. Tonnage as a percent of total tons, regardless of disposal facility used.
2. Adjusted volume to account for actual disposal cost ($/ton) and recycling materials credits. The full disposal costs allocated to commercial are recovered.
3. Disposal costs are allocated based on the adjusted volume percentages.
4. Roll-Off Collection costs were shifted (in equal amounts) into G&A and TS costs to maintain a reasonable (i.e., a 3% increase) charge for roll-off/drop boxes (empties).
5. Tonnages for less than +11 Tons is included in normal tonnage charge calculations. This rate includes the base rate plus a penalty, which is 50% of the base rate.
New Drop
Box Rates
($/ton)
Current Drop Box
Tonnage Rates
($/ton)
Current Drop Box
Rates
($/empty)
Allocated Costs (from Cost-of-Service Analysis)
Drop Box Service Type
Units-of-
Service
Calculated
New Drop
Box Rates
($/empty)
G&A
Costs
TS
Costs
Disposal
Costs|1010|Roll-Off/
Drop-Box
Costs|1010|% of
Disposal
Tons|1010|Adjusted
Disposal
Tonnages|1010|Total
Refuse Rate Study – City of Culver City Page 24
Prepared by NBS – May 4, 2015
Appendix Table C-6
Refuse/MSW
Tonnage Refuse Mixed 10,917 64.8% 10,917 52.8%
Recycled Materials
Tonnage Metal 18 0.1% 0 0.0%
Tonnage Asphalt /Concrete 1,877 11.1% 3,068 14.8%
Tonnage Wood Contaminated 181 1.1% 296 1.4%
Tonnage Other Inert 1,829 10.9% 2,990 14.5%
Tonnage C&D Recycle 356 2.1% 582 2.8%
Yardwaste
Tonnage Yard Waste 657 3.9% 990 4.8%
Waste-to-Energy
Tonnage Waste-To-Energy (MSW) 1,011 6.0% 1,847 8.9%
Compactor Variable Restaurant 55 0.3% 83 0.4%
Total 16,846 100% 20,690 100%
% of 2014
Tonnage
Adjusted
Tons
2014
Tonnage
% of Adj.
Tonnage
Drop Box Tonnage
Adjusted Drop Box Tonnage Factors