HomeMy WebLinkAbout2011-1205 Study Session PACKET CITY OF
ASHLAND
CITY COUNCIL STUDY SESSION
AGENDA
Monday, December 5, 2011 at 5:30 p.m.
Siskiyou Room, 51 Winburn Way
5:30 p.m. Study Session
1. Look Ahead Review
2. Does Council have questions about the proposed solid waste collection rate
increase options? [60 Minutes)
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I).
C(>I NCa, A11:F (INGS ARIc 11ROADC AST I I VE ON ("I 1H AVVI13L 9
V1S11 I''l IF, U T Y OI' ASHLAND'S 5 W 1 13 S1 IT ;AT NV\V\t.ASI I1,ANIROR.US
City of Ashland Council Meeting Look Ahead
*****THIS IS A DRAFT AND SUBJECT TO CHANGE*****
ruts
�St'ud'iSession iZSiski ou Room'-
Departments
Responsible
ss
12119
tuts
cc
12/20
SS
112
cc
113
ss
1116
cc
1117
ss
2/6
cc
217
SS
2/20
cc
2121
ss
315
cc
316
ss
3119
cc
3120
SS
412
cc
413
ss
4116
cc
4117
ss
4130
cc
511
1220
�We ularCouncillMeetin'
1220
1
Resolution regarding Wireless Fees Bill
CD
CONS
2
Annual Review of Investment Policy
Recorder
CONS
3
Appointment of Budget Committee Members Barbara
Recorder
NEW
a
Sewer line service policy(Mike)
PW
NEW
5
Update from CERT John
Fire
NEW
6
Ordinance updating Housing and Planning commission
member requirements Bill
CD
ORD-2
7
Update to Wireless Ordinance Bill/David
CD Legal
ORD-1
ORD-2
IIIII
�SttudiBessiOn CancellFdMNew Years Holida
u2
2/3
�Re ular CouncillMeetin'
e
li
tr3
6
Mayors State of the City Speech(Mayor)
Mayor
PRIES
s
Presentation on 72 Hour Emergency Kits John
Fire
PRIES
10
Discussion regarding criteria for selection of new City
Administrator Tina
HR
PH
11
Approval of recommendations regarding the Economic and
Cultural Grants process(Lee)
Finance
UNFIN
12
1 Election of Council President Barbara
Recorder
NEW
13
Update to Wireless Ordinance Bill/David
CD Legal
ORD-2
M
�Sttud-yI$ession CancellFdMML►KIFJiDa 1i
vas
ut7
�Re uular CWuncillMeet
V647
to
Council Goals Update Ann
Admin
CONS
15
Memorial marker policy(Mike)
PW
NEW
16
Guidelines for Commission Sponsorship Lee/David
Electric Legal
NEW
17
Infrastructure financing plan for employment development rrlF
Feasibility Final Plan Bill
CD
New
16
Update on Corn Dev Clarity&Responsiveness Council Goal
Bill
CD
New
19
ITSP Update Mike
PW
NEW
20
AFN Update Lee
IT
NEW
F:"216:
26
�St'ud'ISession I-nlSiggi ou Room'
-
21
Presentation of FY2013 CIP Mike
PW
"�Re
uularGOuncillMeetin'�
2n
22
Approval of FY2013 CIP Mike
PW
UNFIN
23
Approval of TSP Mike
PW -
NEW
24
Update on Economic Development Bill
CD
NEW
vzo
Stud'ISessionCancellEdQP,r'esident;lDa'-
220
vz1
�Re uular ConcillMe'etin
i�
iiiii�
ziza
25
Approval of Water Master Ian Mike
PW
NEW
315
26
�St'ud'ISession IZSiski ouRoom'-
Discussion regarding a new model for telecommunications
franchise agreements and application of rights-of-way usage
Lee/Dave
IT Legal
Finance
illlll�
ifs
Ss
_
27
Discussion regarding uidelines forspecial events Ann
Admin PW
ss
3i6
�Re ularCou'ncillMe'etin"�-
�
arb
Page 1 of 2 12/112011
City of Ashland Council Meeting Look Ahead
*****THIS IS A DRAFT AND SUBJECT TO CHANGE""*""
Page 2 of 2 12/1/2011
Departments
B/1e
�S fud-YISesion iZSiski ou Roo'm'-
3/19
112n511
WRe uular CouncilIMe'etin
Admin PIN
s/20
NEW
28
A royal of uidelines for Special Events Ann
4/2
StudTSession iiZSlgRl ou Room'
4/3
Wlke ular CouncilDNe'eti�
lCorrections to Fireworks Ordinance John
-
Fire
0
I I
4/3
ORD-1
29
I ORD-2
M
�St'ud'i8ession iZSiskl ou Room
M
so
MRe uularCouncillMetin
Approval of Wastewater Maste Ian Mike
®
Pw
®
47M7
NEW
31
Corrections to Fireworks Ordinance John -
Fire
ORD-2
40
�St'ud-yiSesion iilSislii ou Roo°m
1111521111
�Re utaTiCouncillmge—tin
-Future To ics NotlYitlSChed'ule`d�
Study Session with OSF Board
-
Study Session re:Business Licenses
Joint Meeting with Housing Commission to discuss Clay Street Property
Joint Study Session with Parks re:MOU
AFN Master Contract
Update to Parks curfew ordinance
IT Strategic Plan
Page 2 of 2 12/1/2011
CITY OF
ASHLAND
Council Communication
Study Session —Recology Waste Collection Rate Increase
Meeting Date: December 5, 2011 Primary Staff Contact: Ann Seltzer
Department: Administration E-Mail: ann @ashland.or.us
Secondary Dept.: Finance Secondary Contact: Lee Tuneberg
Approval: Larry Patterson Estimated Time: 60 minutes
Question:
Does the City Council have questions about the proposed solid waste collection rate increase options?
A public hearing is scheduled for tomorrow evening, December 6, when Council can consider the four
options and either move forward with a rate increase or decide not to take any action.
Staff Recommendation:
None.
Summary:
Recology representatives will present four options on how to implement their requested 23.3%
increase for Council to consider.
These options to be presented are:
1. Option 1 spreads the rate increase for all customers over three years with the greatest increase
in year 1. In year one the greatest increase will be to commercial, debris box, compactor and
medical waste customers. Option 1 will retain current volume/frequency discount for
commercial bin customers. (See pages 1 and 4)
2. Option 2 spreads the rate increase for all customers over three years. In option 2 the highest
increase in year one is to only commercial bin customers. Option 2 slightly reduces the
volume/frequency discount for commercial bin customers. (See pages 8 and 11)
3. Option 3 increases the rate for commercial bin customers (49.6%) in year one. This option
features a 3.7% increase for all customers including commercial bin customers in years two and
three. Option 3 eliminates the volume/frequency discount for commercial bin customers. (See
pages 15 and 18)
4. Option 4 is similar to Option 3 but spreads the increase for commercial bin customers over a
three year period rather than a single increase in year one. Under this option commercial bin
customers receive a 30% rate increase in year 1 and an 11.3% increase in year 2 and 3. All
other customers receive a 3.7% increase in year 2 and 3. (See pages 22 and 25)
There are 343 unique commercial bin customers.
Discussion Points:
1) Currently the commercial bin rate structure provides a volume and frequency discount. As
commercial customers subscribes to higher service volumes and frequency, the discount can be as
much as 44%per cubic yard. In 1995, Council directed Ashland Sanitary Service to eliminate
volume discounts for residential customers.
2) Currently, all Recology customers are subsidizing high volume/frequency commercial bin accounts.
Page 1 of 3
�r,
CITY OF
ASHLAND
3) Option 3 presents a significant increase to commercial bin accounts in year one (49, 6%)and
eliminates the current intra-class subsidy for commercial bin customers.
4) Option 4 reduces the impact on local businesses by spreading the rate increase for commercial bin
customers over three years and eliminates the current intra-class subsidy.
5) How do these proposed rates (both residential and commercial)compare with rates outside of
Ashland?
6) What does Recology do to help commercial customers reduce waste? Under the current rate
structure and Options 1 and 2 there is no incentive to reduce waste for commercial bin customers.
7) All four options include the existing volume discount for compactor and construction debris
customers.
Background:
In 2009 the City of Ashland granted a franchise agreement (Ordinance 2582), previously held by Ashland
Sanitary Services to Recology for solid waste collection. Section 0 of the Ordinance states the company
may petition the City Council each year for an increase in rates based upon an increase in the cost of
rendering solid waste disposal services and that a rate increase be approved by resolution.
In July, 2011 Recology contacted the City of Ashland requesting a rate increase of 23.3%.
Staff met with representatives of Recology in September and requested Recology develop a rate plan that
spreads the increase over a three year period. In November, staff met again with Recology and requested a
rate plan showing a rate increase without the current volume/frequency discounts for commercial accounts
and a new discount for qualifying seniors. The 30% senior discount reflects the discount the City provides
to qualifying seniors on their utility bills.
In calculating their rate increase, Recology's used the Operating Ratio (OR) of 90%, which we are told, is
standard for this industry. This is the same OR used by Rogue Disposal for its six franchises and
Recology's franchise with Jackson County.
History of Rate Increases
2008-9%
2004-7.2%
1995 - 10%
Franchise Fees
The City of Ashland receives 5%of the franchise holder's gross receipts. In FY2010-11, the City received
$138,842 from Recology. A 23.3%rate increase over three years will generate approximately $171,192 at
the end of year three.
Related City Policies:
Ordinance 2582
Ordinance 2829
Recycling Center Lease
Council Options:
• Determine which increase(s)to consider in the public hearing.
Page 2 of 3
CITY OF
ASHLAND
• Do not have a public hearing on December 6 and request Recology revise the proposed rate
increase.
Attachments:
• Recology Overview Power Point Slides
• Recology rate increase proposals Options 1, 2, 3 and 4
• Rate Increase Impact
• Recology Rate Comparisons between Ashland and Medford
• Recology Special Programs
• Original Rate Filing Request
• Recology response to Tuneberg memo to Bennett
• Ordinance 2582, 2829, Recycling Center Lease
i
Page 3 of 3
�r,
ecology.
WASTE ZERO
Rate Increase Application
City of Ashland
Bruce Gondry—Vice President and Group Manager
Ed Farewell—Vice President and Assistant Group Manager
Tom Norris—Regional Financial Manager
Steve DiFabion—General Manager
CORE SERVICES
pto�
Recology
AJ.tr:.9 0
WASTE ZERO
❖Curbside Trash Pickup ❖Curbside Commingled Recycling
❖Curbside Yard Debris ❖Curbside Glass and Motor Oil
❖Debris Box Rental ❖Bulky Item Pickup
Recology Valley View
Transfer Station
r
Recology.
A,Jdd-;d Sza:.tary Sc;mo
WASTE ZERO
3000 N Valley View Rd.
Ashland, OR 97520
All Commingled Recycling Trash
Materials
Glass
Cardboard
Electronics
Scrap Metal
Motor Oil
Tires
Car Batteries
Anti-freeze
Fluorescent Tubes, CFL's
Appliances
Lumber & Woody Debris
Yard Debris
Concrete and Clean Fill
SALE OF BAGGED COMPOST FROM THE ROGUE VALLEY
Ashland Recyc
ling Center
Free recycling services
■ Commingled recycling �! l :zv� 40F
■ Bottles and cans V;
■ Cardboard
■CFL's, Fluorescent Tubes
■lnkjet cartridges, toner, cell phones
■Shrink wrap, plastic bags
Other services include:
■Free leaf drop-off days
■ "FreeBox" clothing and shoe ■ Composting classes
,exchange ■ Compost
j demonstration
---------- - - - -
■area
Food bank
collection
■Pet adoption—
Over 200 dogs
Adopted!
Other Services We Provide
Community outreach and education
Ashland Conservation Commission
❖Community events sponsor-4th of July
NisFestival of lights, Annual C-of-C Recognition
� Dinner, Earth Day, JCRP
.
9
❖Ashland Wildlife Committee
+Prescription Drug Drop Boxes
:-:❖Clearstream donations
-;
Volunteerism
****Sticker❖Sticker program
❖Yellow Bag program
.
❖Bear-proof carts
❖Co-sponsor of HHW event
❖Discount leaf bag program
❖Community events sponsor-4th of July
NisFestival of lights, Annual C-of-C Recognition
� Dinner, Earth Day, JCRP
.
9
ecology.
WASTE ZERO
Proposed New Senior/Disabled
Program
eAge 60, disabled and low income = 30%
discount
*Age 65 and low income = 30% discount
•Applicant needs only to present current
city utility bill to qualify
Recology. Operating Ratio
WASTE ZERO
*Operating Ratio = Allowable Expenses - .90, + Pass-Through Expenses
•Designed to provide a-pre-tax profit of 10%
*Fair to all parties—provides a fair rate of return, prevents excessive profits
*Functions
in up and
down revenue
cycles—as economy recovers and revenues
return,
OR holds
rate increases
in check
*Easy to calculate and administer
*Consistent with industry averages for solid waste collection companies—.90 OR
is the prevailing industry standard applied in Jackson County as well as other
areas of Oregon (e.g. Medford, Jacksonville, Central Point, White'City,
Phoenix, unincorporated Jackson County)
•Reasonable return allows us to continue to provide value-added services and
Improvements, and to remain responsible community business partners
Recology. THE COST OF SUCCESS
WASTE ZERO
• -Nearly 1 of every 8 residential customers takes advantage of
discount programs (732 "sticker" customers and 237 "yellow
bag" customers out of 8826 total customers)
• Equates to "lost" annual revenue of over $134,000
• 265 more tons of material diverted in 2010 vs. 2009
• Jackson County recovery rate improved 6.5% (35.6% diversion
2009 versus 42.1 % diversion in 2010)
Lb s. per capita generated
Lbs. per capita disposed
Lbs. per capita recove"red
2152
766
Knob
1394
1012`
Reco,ogy_ THE COST OF S
WASTE ZERO
LESS TRASH, GREATER DIVERSION = LESS REVENUE
100%
80%
60%
40%
20%
0%
Before After
■ Recycling
■ Trash
Price of service is assigned to a unit of trash, but recycling services are
included in the price. As recycling increases, billable units decrease,
but costs associated with providing recycling services continue to
escalate.
Recology> RECYCLING CHALLENGES WE FACE
WASTE ZERO .
Value as of
10/11 has
returned to $0
*Unstable commodity prices
*Distance to markets
*Limitations of MRFs '
*Glass collection and disposal
*Very low compactor/debris box volume (off 38% calendar YTD)
*Increased demand for diversion/services
•Lack of facilities to compost/process post-consumer food waste
•Alarming fuel costs
*Distance to disposal sites
91-ow route density outside urban growth boundaries
*Tight access in most service areas
-Capital/rate constraints limiting carting of all customers
*Low tip fees and pricing do not encourage recycling
Residential Mixed Recycling Value
$30.00
$20.00
`200
$10.00
�,,
y�
$'
.
OPrice in$$
$(10.00)
$(20.00)
$(30.00)
Year
*Very low compactor/debris box volume (off 38% calendar YTD)
*Increased demand for diversion/services
•Lack of facilities to compost/process post-consumer food waste
•Alarming fuel costs
*Distance to disposal sites
91-ow route density outside urban growth boundaries
*Tight access in most service areas
-Capital/rate constraints limiting carting of all customers
*Low tip fees and pricing do not encourage recycling
`200
�,,
y�
.
*Very low compactor/debris box volume (off 38% calendar YTD)
*Increased demand for diversion/services
•Lack of facilities to compost/process post-consumer food waste
•Alarming fuel costs
*Distance to disposal sites
91-ow route density outside urban growth boundaries
*Tight access in most service areas
-Capital/rate constraints limiting carting of all customers
*Low tip fees and pricing do not encourage recycling
■ r
Recologyu
WASTE ZERO
The Shortfall
-To achieve .90 OR, total revenue must increase 23.3%
•Due to the magnitude of this shortfall, we are proposing a 3-year
phase-in
*We have prepared three scenarios for your consideration
•Two of these scenarios begin to address the problem that current
commercial rates "reward bad behavior" .
RecoloP HOW DID WE GET HERE ?
WASTE ZERO
More a function of revenue shortfalls than escalating expenses
Collection Revenue 2008
Rate Increase 4-1-08 3 Months @ 9%
Rate Increase 7-1-09 12 Months @ 7.7%
Expected Revenue 2010
Actual Revenue 2010
Shortfall
3,817,924
80,471
300,176
4,198,572
3,737,593
2010 recycling revenues were$69,000 less than 2008.
Recycling Revenue 2008
Expected growth
Expected Revenue 2010
Actual Revenue 2010
Shortfall
iTotal revenue shortfall
460,979,
125,594
125,594
56,613
68,981
529,960
Escalating expenses from 2008
through projected 2012 account
for over $300,000 (e.g. wages,
payroll taxes, benefits, worker's
compensation, insurance, etc.
■ r/
Recology.
WASTE ZERO
OUR PLEDGE
Continue to be good community partners
Continue to drive towards Waste Zero
Strive for continuous improvement and efforts to increase operational
efficiencies
Seek to expand programs and services
Continue to be good citizens
Recology Ashland Sanitary Service
Three Year Rate Plan
Option 1
23.3%
Handout-Option 1 1 of 28 - 11/30/20115:00 PM
Current
Percent
Proposed
Percent
Proposed
Percent
Proposed
Revenue
Increase
2012
Increase
2013
Increase
2014
Residential
$1,836,568
8.0%
$1,983,589
4.5%
$2,072,851
4.5%
$2,166,129
Commercial(Cans)
$310,225
8.0%
$335,066
4.5%
$350,144
4.5%
$365,900
Commercial(Bins)
$1,109,305
12.0%
$1,242,421
8.0%
$1,341,815
8.0%
$1,449,160
Debris Box
$349,605
12.0%
$391,564
8.0%
$422,889
8.0%
$456,720
Compactor
$120,760
12.0%
$135,253
8.0%
$146,073
8.0%
$157,759
Medical
$31,353
12.0%
$35,113
4.5%
$36.694
4.5%
538.345
23.3%
Handout-Option 1 1 of 28 - 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-.Option 1
Residential
Service
Description
Number of
Customers
Current
Recology,Ashland
$_Increase %Increase
Proposed
Medford
In City County
32 Gallon
5,703
16.61
1.33
8.0%
17.94
15.63
16.71
64Gallon
12
33.22
2.66
8.0%
35.88
26.19
28.36
96 Gallon
2
49.83
3.99
8.0%
53.82
36.76
40.01
96 Gallon Yard Debris
1,899
5.65
. 0.45
8.0%
6.10
Stickers
548'
35.05
2.81
8.0%
37.86
Yellow Bags
1 191*1
23.27
1.86
8.0%
25.13
' Sticker and yellow bag customers do not subscribe to regular weekly service.
s
Handout-Option 1 2 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 1
Commercial Can Service
Service
Description
Number of
Customers
Yards/
Month
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
32 Gallon 1 x Week
380
0.7
16.61
24.20
1.33
8.0%
17.94
26.13
15.63
22.77
32 Gallon 2 x Week
1
1.4
33.22
24.20
2.66
8.0%
35.88
26.13
31.26
22.77
32 Gallon 3 x Week
-
2.1
49.83
24.20
3.99
8.0%
53.82
26.13
46.89
22.77
32 Gallon 4 x Week
-
2.7
66.44
24.20
5.32
8.0%
71.76
26.13
62.52
22.77
32 Gallon 5 x Week
-
3.4
83.05
24.20
6.64
8.0%
89.69
26.13
78.15
22.77
32 Gallon 6 x Week
-
4.1
99.66
24.20
7.97
8.0%
107.63
26.13
93.78
22.77
64 Gallon 1 x Week
119
1.4
33.22
24.20
2.66
8.0%
35.88
26.13
26.19
19.08
64 Gallon 2 x Week
2
2.7
66.44
24.20
5.32
8.0%
71.76
26.13
52.38
19.08
64 Gallon 3 x Week
1
4.1
99.66
24.20
7.97
8.0%
107.63
26.13
78.57
19.08
64 Gallon 4 x Week
-
5.5
132.88
24.20
10.63
.8.0%
143.51
26.13
104.76
19.08
64 Gallon 5 x Week
-
6.9
166.10
24.20
13.29
8.0%
179.39
26.13
130.95
19.08
64 Gallon 6 x Week
3
8.2
199.32
24.20
15.95
8.0%
215.27
26.13
157.14
19.08
96 Gallon 1 x Week
49
2.1
49.83
24.20
3.99
8.0%
53.82
26.13
36.76
17.85
96 Gallon 2 x Week
2
4.1
99.66
24.20
7.97
8.0%
107.63
26.13
73.52
17.85
96 Gallon 3 x Week
1
6.2
149.49
24.20
11.96
8.0%
161.45
26.13
110.28
17.85
96 Gallon 4 x Week
-
8.2
199.32
24.20
15.95
8.0%
215.27
26.13
147.04
17.85
96 Gallon 5 x Week
-
10.3
249.15
24.20
19.93
8.0%
269.08
26.13
183.80
17.85
96 Gallon 6 x Week
3
12.4
298.98
24.20
23.92
8.0%
322.90
26.13
220.56
17.85
Handout-Option 1 3 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 1
Commercial Bin Service
Service
Description
Number of
Customers
Yards/
Month
I
Current
$/Yard
Discount
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Discount
Medford
In City $/Yard
1 Yard 1 x Week
109
4.3
84.44
19.49
-
10.13
12.0%
94.57
21.82
-
N/A
1 Yard 2 x Week
7
8.7
139.13
16.05
17.6%
16.70
12.0%
155.83
17.98
17.6%
N/A
1 Yard 3 x Week
-
13.0
193.81
14.91
23.5%
23.26
12.0%
217.07
16.70
23.5%
N/A
1 Yard 4 x Week
-
17.3
248.49
14.34
26.4%
29.82
12.0%
278.31
16.06
26.4%
N/A
1 Yard 5 x Week
1
21.7
303.15
13.99
28.2%
36.38
12.0%
339.53
15.67
28.2%
N/A
1 Yard 6 x Week
1
26.0
357.83
13.76
29.4%
42.94
12.0%
400.77
15.41
29.4%
N/A
1.5 Yard 1 x Week
87
6.5
94.14
14.48
25.7%
11.30
12.0%
105.44
16.22
25.7%
104.61
16.09
1.5 Yard 2 x Week
30
13.0
161.27
12.41
36.3%
19.35
12.0%
180.62
13.89
36.3%
169.48
13.04
1.5 Yard 3 x Week
9
19.5
222.87
11.43
41.3%
26.74
12.0%
249.61
12.80
41.3%
244.93
12.56
1.5 Yard 4 x Week
1
26.0
290.00
11.15
42.8%
34.80
12.0%
324.80
12.49
42.8%
320.39
12.32
1.5 Yard 5 x Week
1
32.5
353.00
10.86
44.3%
42.36
12.0%
395.36
12.17
44.3%
382.63
11.77
1.5 Yard 6 x Week
1
39.0
417.37
10.70
45.1%
50.08
12.0%
467.45
11.99
45.1%
434.25
11.13
1.5 Yard 7 x Week
1
45.5
505.50
11.11
43.0%
60.66
12.0%
566.16
12.44
43.0%
N/A
2 Yard 1 x Week
70
8.7
120.43
13.90
28.7%
14.45
12.0%
134.88
15.56
28.7%
136.38
15.74
2 Yard 2 x Week
61
17.3
210.41
12.14
37.7%
25.25
12.0%
235.66
13.60
37.7%
219.76
12.68
2 Yard 3 x Week
39
26.0
300.40
11.55
40.7%
36.05
12.0%
336.45
12.94
40.7%
312.47
12.02
2 Yard 4 x Week
11
34.7
391.06
11.28
42.1%
46.93
12.0%
437.99
12.63
42.1%
393.21
11.34
2 Yard 5 x Week
5
43.3
481.73
11.12
43.0%
57.81
12.0%
539.54
12.45
42.9%
473.94
10.94
2 Yard 6 x Week
6
52.0
570.33
10.97
43.7%
68.44
12.0%
638.77
12.28
43.7%
568.01
10.92
2 Yard 7 x Week
1 3
1 60.7
1 690.76
11.39
41.6%
82.89
12.0%
773.65
12.75
41.6%
N/A
Handout-Option 1 4 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 1
Compactor
Service
Description
Number of
Customers
Loose
Yds/Load'
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
1 Yard per Load
-
3.0
26.93
8.98
3.23
12.0%
30.16
10.05
30.31
10.10
2 Yard per Load
-
6.0
53.86
8.98
6.46
12.0%
60.32
10.05
60.62
10.10
3 Yard per Load
-
9.0
80.79
8.98
9.69
12.0%
90.48
10.05
90.93
10.10
4 Yard per Load
-
12.0
107.72
8.98
12.93
12.0%
120.65
10.05
121.24
10.10
8 Yard per Load
3
24.0
400.08
16.67
48.01
12.0%
448.09
18.67
242.48
10.10
15 Yard per Load
2
45.0
322.80
7.17
38.74
12.0%
361.54
8.03
420.60
9.35
20 Yard per Load
11
60.0
398.92
6.65
47.87
12.0%
446.79
7.45
560.80
9.35
25 Yard per Load
1
75.0
475.06
6.33
57.01
12.0%
532.07
7.09
701.00
9.35
30 Yard per Load
-
1 90.0
1 551.21
6.12
66.15
12.0%
617.36
6.86
841.20
9.35
'Assumes 3 to 1 compaction
Handout-Option 1 5 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 1
Debris Box
Handout-Option 1 6 of 28 11/30/20115:00 PM
Service
Description
Number of
Customers
Loose
Yds/Load
Current
$/Yard
Recology
$Increase
Ashland
%Increase
Proposed
$/Yard
Medford
In City $/Yard
7 Yard per Load
1
7.0
136.72
19.53
16.41
12.0%
153.13
21.88
N/A
10
Yard per Load
129
10.0
169.89
16.99
20.39
12.0%
190.28
19.03
213.28
21.33
20
Yard per Load
-
20.0
N/A
N/A
320.60
16.03
25
Yard per Load
84
25.0
284.73
' 11.39
34.17
12.0%
318.90
12.76
N/A
30
Yard per Load
-
30.0
N/A
N/A
427.67
14.26
40
Yard per Load
1 2
1 40.0
1 455.48
11.39
54.66
12.0%
510.14
12.75
554.87
13.87
Handout-Option 1 6 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 1
Medical
Service
Description
Number of
Customers
Loose
Gal/Load
Current
$/Gal
Recology Ashland
$ Increase %Increase
Proposed
$/Gal
Medford
In City $/Gal
1 Gallon Medical Waste
40
1.0
15.10
2.16
1.81
12.0%
16.91
2.42
17.00
2.43
2 Gallon Medical Waste
24
2.0
22.66
2.27
2.72
12.0%
25.38
2.54
21.22
2.12
6 Gallon Medical Waste
1
6.0
52.90
2.65
6.35
12.0%
59.25
2.96
N/A
15 Gallon Medical Waste
34
15.0
21.39
0.86
2.57
12.0%
23.96
0.96
21.27
0.85
34 Gallon Medical Waste
23
34.0
42.79
1.43
5.13
12.0%
47.92
1.60
30.64
1.02
Handout-Option 1 7 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
Three Year Rate Plan
Option 2
23.3%
Handout-Option 2 8 of 28 11/30/20115:00 PM
Current
Percent
Proposed
Percent
Proposed
Percent
Proposed
Revenue
Increase
2012
Increase
2013
Increase
2014
Residential
$1,836,568
8.0%
$1,983,589
4.5%
$2,072,851
4.5%
$2,166,129
Commercial(Cans)
$310,225
8.0%
$335,066
4.5%
$350,144
4.5%
$365,900
Commercial(Bins)
$1,109,305
15.3%
$1,279,509
8.0%
$1,381,870
7.0%
$1,478,601
Debris Box
$349,605
8.0%
$377,574
8.0%
$407,780
7.0%
$436,324
Compactor
$120,760
8.0%
$130,421
8.0%
$140,855
7.0%
$150,715
Medical
531,353
8.0%
533,859
4.5%
535,383
4.5%
536.975
23.3%
Handout-Option 2 8 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 2
Residential
Service
Description
Number of
Customers
Current
Recology Ashland
$Increase %Increase
Proposed
Medford
In City County
32 Gallon
5,703
16.61
1.33
8.0%
17.94
15.63 16.71
64 Gallon
12
33.22
2.66
8.0%
35.88
26.19 28.36
96 Gallon
2
49.83
3.99
8.0%
53.82
36.76 40.01
96 Gallon Yard Debris
1,899
5.65
0.45
8.0%
6.10
Stickers
548*
35.05
2.81
8.0%
37.86
Yellow Bags
1 191*1
23.27
1.86
8.0%
25.13
* Sticker and yellow bag customers do not subscribe to regular weekly service.
Handout-Option 2 9 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 2
Commercial Can Service
Service
Description
Number of
Customers
Yards/
Month
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
32 Gallon 1 x Week
380
0.7
16.61
24.20
1.33
8.0%
17.94
26.13
15.63
22.77
32 Gallon 2 x Week
1
1.4
33.22
24.20
2.66
8.0%
35.88
26.13
31.26
22.77
32 Gallon 3 x Week
-
2.1
49.83
24.20
3.99
8.0%
53.82
26.13
46.89
22.77
32 Gallon 4 x Week
-
2.7
66.44
24.20
5.32
8.0%
71.76
26.13
62.52
22.77
32 Gallon 5 x Week
-
3.4
83.05
24.20
6.64
8.0%
89.69
26.13
78.15
22.77
32 Gallon 6 x Week
-
4.1
99.66
24.20
7.97
8.0%
107.63
26.13
93.78
22.77
64 Gallon 1 x Week
119
1.4
33.22
24.20
2.66
8.0%
35.88
26.13
26.19
19.08
64 Gallon 2 x Week
2
2.7
66.44
24.20
5.32
8.0%
71.76
26.13
52.38
19.08
64 Gallon 3 x Week
1
4.1
99.66
24.20
7.97
8.0%
107.63
26.13
78.57
19.08
64 Gallon 4 x Week
-
5.5
132.88
24.20
10.63
8.0%
143.51
26.13
104.76
19.08
64 Gallon 5 x Week
-
6.9
166.10
24.20
13.29
8.0%
179.39
26.13
130.95
19.08
64 Gallon 6 x Week
3
8.2
199.32
24.20
15.95
8.0%
215.27
26.13
157.14
19.08
96 Gallon 1 x Week
49
2.1
49.83
24.20
3.99
8.0%
53.82
26.13
36.76
17.85
96 Gallon 2 x Week
2
4.1
99.66
24.20
7.97
8.0%
107.63
26.13
73.52
17.85
96 Gallon 3 x Week
1
6.2
149.49
24.20
11.96
8.0%
161.45
26.13
110.28
17.85
96 Gallon 4 x Week
-
8.2
199.32
24.20
15.95
8.0%
215.27
26.13
147.04
17.85
96 Gallon 5 x Week
10.3
249.15
24.20
19.93
8.0%
269.08
26.13
183.80
17.85
96 Gallon 6 x Week
3
1 12.4
298.98
24.20
23.92
8.0%
322.90
26.13
1 220.56
17.85
Handout-Option 2 10 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 2
Commercial Bin Service
Service
Description
Number of
Customers
Yards/
Month
Current
$/Yard
Discount
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Discount
Medford
In City $/Yard
1 Yard 1 x Week
109
4.3
84.44
19.49
-
6.76
8.0%
91.20
21.05
-
N/A
1 Yard 2 x Week
7
8.7
139.13
16.05
17.6%
15.90
11.4%
155.03
17.89
15.0%
N/A
1 Yard 3 x Week
-
13.0
193.81
14.91
23.5%
30.53
15.8%
224.34
17.26
18.0%
N/A
1 Yard 4 x Week
-
17.3
248.49
14.34
26.4%
39.69
16.0%
288.18
16.63
21.0%
N/A
1 Yard 5 x Week
1
21.7
303.15
13.99
28.2%
47.95
15.8%
351.10
16.20
23.0%
N/A
1 Yard 6 x Week
1
26.0
357.83
13.76
29.4%
52.55
14.7%
410.38
15.78
25.0%
N/A
1.5 Yard 1 x Week
87
6.5
94.14
14.48
25.7%
16.66
17.7%
110.80
17.05
19.0%
104.61
16.09
1.5 Yard 2 x Week
30
13.0
161.27
12.41
36.3%
27.09
16.8%
188.36
14.49
31.2%
169.48
13.04
1.5 Yard 3 x Week
9
19.5
222.87
11.43
41.3%
49.70
22.3%
272.57
13.98
33.6%
244.93
12.56
1.5 Yard 4 x Week
1
26.0
290.00
11.1S
42.8%
60.13
20.7%
350.13
13.47
36.0%
320.39
12.32
1.5 Yard 5 x Week
1
32.5
353.00
10.86
44.3%
73.59
20.8%
426.59
13.13
37.6%
382.63
11.77
1.5 Yard 6 x Week
1
39.0
417.37
10.70
45.1%
81.24
19.5%
498.61
- 12.78
39.3%
434.25
11.13
1.5 Yard 7 x Week
1
45.5
505.50
11.11
43.0%
107.24
•21.2%
612.74
13.47
36.0%
N/A
2 Yard 1 x Week
70
8.7
120.43
13.90
28.7%
21.83
18.1%
142.26
16.41
22.0%
136.38
15.74
2 Yard 2 x Week
61
17.3
210.41
12.14
37.7%
31.44
14.9%
241.85
13.95
33.7%
219.76
12.68
2 Yard 3 x Week
39
26.0
300.40
11.55
40.7%
49.57
16.5%
349.97
13.46
36.0%
312.47
12.02
2 Yard 4 x Week
11
34.7
391.06
11.28
42.1%
58.50
15.0%
449.56
12.97
38.4%
393.21
11.34
2 Yard 5 x Week
5
43.3
481.73
11.12
43.0%
65.99
13.7%
547.72
12.64
39.9%
473.94
10.94
2 Yard 6 x Week
6
52.0
570.33
10.97
43.7%
69.86
12.2%
640.19
12.31
41.5%
568.01
10.92
2 Yard 7 x Week
1 3
1 60.7
1 690.76
11.39
41.6%
95.96
13.9%
786.72
12.97
38.4%
N/A
Handout-Option 2 11 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 2
Compactor
Service
Description
Number of
Customers
Loose
Yds/Load'
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City, $/Yard
1 Yard per Load
-
3.0
26.93
8.98
2.15
8.0%
29.08
9.69
30.31
10.10
2 Yard per Load
-
6.0
53.86
8.98
4.31
8.0%
58.17
9.70
60.62
10.10
3 Yard per Load
-
9.0
80.79
8.98
- 6.46
8.0%
87.25
9.69
90.93
10.10
4 Yard per Load
-
12.0
107.72
8.98
8.62
8.0%
116.34
9.70
121.24
10.10
8 Yard per Load
3
24.0
400.08
16.67
32.01
8.0%
432.09
18.00
242.48
10.10
15 Yard per Load
2
45.0
322.80
7.17
25.82
8.0%
348.62
7.75
420.60
9.35
20 Yard per Load
11
60.0
398.92
6.65
31.91
8.0%
430.83
7.18
560.80
9.35
25 Yard per Load
1
75.0
475.06
6.33
38.00
8.0%
513.06
6.84
701.00
9.35
30 Yard per Load
-
1 90.0
1 551.21
6.12
44.10
8.0%
595.31
6.61
841.20
9.35
•Assumes 3 to 1 compaction
Handout-Option 2 12 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 2
Debris Box
Handout-Option 2 13 of 28 11/30/20115:00 PM
Service
Description
Number of
Customers
Loose
Yds/Load
Current
$/Yard
Recology
$Increase
Ashland
%Increase
Proposed
$/Yard
Medford
In City $/Yard
7 Yard per Load
1
7.0
136.72
19.53
10.94
8.0%
147.66
21.09
N/A
10
Yard per Load
129
10.0
169.89
16.99
13.59
8.0%
183.48
18.35
213.28
21.33
20
Yard per Load
-
20.0
N/A
N/A
320.60
16.03
25
Yard per Load
- 84
25.0
284.73
11.39
22.78
8.0%
- 307.51
12.30
N/A
30
Yard per Load
-
30.0
N/A
.
N/A
427.67
14.26
40
Yard per Load
1 2
1 40.0
1 455.48
11.39
36.44
8.0%
491.92
12.30
554.87
13.87
Handout-Option 2 13 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 2
Medical
Service
Description
Number of
Customers
Loose
Gal/Load
Current
$/Gal
Recology Ashland
$ Increase %Increase
Proposed
$/Gal
Medford
In City $/Gal
1 Gallon Medical Waste
40
1.0
15.10
2.16
1.21
8.0%
16.31
2.33
17.00
2.43
2 Gallon Medical Waste
24
2.0
22.66
2.27
1.81
8.0%
24.47
2.45
21.22
2.12
6 Gallon Medical Waste
1
6.0
52.90
2.65
4.23
8.0%
57.13
2.86
N/A
15 Gallon Medical Waste
34
15.0
21.39
0.86
1.71
8.0%
23.10
0.92
21.27
0.85
34 Gallon Medical Waste
23
34.0
42.79
1.43
3.42
8.0%
46.21
1.54
30.64
1.02
Handout-Option 2 14 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
Three Year Rate Plan
Option 3
Percent
Current
Percent
Proposed
Increase
Revenue
Increase
2012
Residential
$1,836,568
0.0%
$1,836,568
Commercial (Cans)
$310,225
0.0%
$310,225
Commercial (Bins)
$1,109,305
49.6%
$1,659,212
Debris Box
$349,605
0.0%
$349,605
Compactor
$120,760
0.0%
$120,760
Medical
$31,353
0.0%
$31,353
Percent
Proposed
Percent
Proposed
Increase
2013
Increase
2014
3.7%
$1,904,521
3.7%
$1,974,988
3.7%
$321,704
3.7%
$333,607
3.7%
$1,720,603
3.7%
$1,784,265
3.7%
$362,540
3.7%
$375,954
3.7%
$125,228
3.7%
$129,862
3.7%
$32,513
3.7%
$33,716
$3,757,816 14.6% $4,307,723 3.7% $4,467,109 3.7% $4,632,392
23.3%
Handout-Option 3 15 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 3
Residential
Service
Description
Number of
Customers
Current
Recology Ashland
$Increase %Increase
Proposed
Medford
In City County
32 Gallon
5,703
16.61
- 0.0%
16.61
15.63 16.71
64 Gallon
12
33.22
- 0.0%
33.22
26.19 28.36
96 Gallon
2
49.83
- 0.0%
49.83
36.76 40.01
96 Gallon Yard Debris
1,899
5.65
- 0.0%
5.65
Stickers
548'
35.05
- 0.0%
35.05
Yellow Bags
191*
23.27
- 0.0%
23.27
Sticker and yellow bag customers do not subscribe to regular weekly service.
Handout-Option 3 16 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 3
Commercial Can Service
Service
Description
Number of
Customers
Yards/
Month
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
32 Gallon 1 x Week
380
0.7
16.61
24.20
- 0.0%
16.61
24.20
15.63
22.77
32 Gallon 2 x Week
1
1.4
33.22
24.20
- 0.0%
33.22
24.20
31.26
22.77
32 Gallon 3 x Week
-
2.1
49.83
24.20
0.0%
49.83
24.20
46.89
22.77
32 Gallon 4 x Week
-
2.7
66.44
24.20
- 0.0%
66.44
24.20
62.52
22.77
32 Gallon 5 x Week
-
3.4
83.05
24.20
- 0.0%
83.05
24.20
78.15
22.77
32 Gallon 6 x Week
-
4.1
99.66
24.20
- 0.0%
99.66
24.20
93.78
22.77
64 Gallon 1 x Week
119
1.4
33.22
24.20
- 0.0%
33.22
24.20
26.19
19.08
64 Gallon 2 x Week
2
2.7
66.44
24.20
- 0.0%
66.44
24.20
52.38
19.08
64 Gallon 3 x Week
1
4.1
99.66
24.20
- 0.0%
99.66
24.20
78.57
19.08
64 Gallon 4 x Week
-
5.5
132.88
24.20
- 0.0%
132.88
24.20
104.76
19.08
64 Gallon 5 x Week
6.9
166.10
24.20
- 0.0%
166.10
24.20
130.95
19.08
64 Gallon 6 x Week
3
8.2
199.32
24.20
- 0.0%
199.32
24.20
157.14
19.08
96 Gallon 1 x Week
49
2.1
49.83
24.20
- 0.0%
49.83
24.20
36.76
17.85
96 Gallon 2 x Week
2
4.1
99.66
24.20
- 0.0%
99.66
24.20
73.52
17.85
96 Gallon 3 x Week
1
6.2
149.49
24.20
- 0.0%
149.49
24.20
110.28
17.85
96 Gallon 4 x Week
8.2
199.32
24.20
- 0.0%
199.32
24.20
147.04
17.85
96 Gallon 5 x Week
10.3
249.15
24.20
- 0.0%
249.15
24.20
183.80
17.85
96 Gallon 6 x Week
3
12.4
298.98
24.20
- 0.0%
298.98
24.20
220.56
17.85
Handout-Option 3 17 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 3
Commercial Bin Service
Service
Description
Number of
Customers
Yards/
Month
Current
$/Yard
Discount
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Discount
Medford
In City $/Yard
1 Yard 1 x Week
109
4.3
84.44
19.49
-
-
0.0%
84.44
19.49
-
N/A
1 Yard 2 x Week
7
8.7
139.13
16.05
17.6%
29.75
21.4%
168.88
19.49
0.0%
N/A
1 Yard 3 x Week
-
13.0
193.81
14.91
23.5%
59.51
30.7%
253.32
19.49
0.0%
N/A
1 Yard 4 x Week
17.3
248.49
14.34
26.4%
89.27
35.9%
337.76
19.49
0.0%
N/A -
1 Yard 5 x Week
1
21.7
303.15
13.99
28.2%
119.05
39.3%
422.20
19.49
0.0%
N/A
1 Yard 6 x Week
1
26.0
357.83
13.76
29.4%
148.81
41.6%
506.64
19.49
0.0%
N/A
1.5 Yard 1 x Week
87
6.5
94.14
14.48
25.7%
32.52
34.5%
126.66
19.49
0.0%
104.61
16.09
1.5 Yard 2 x Week
30
13.0
161.27
12.41
36.3%
92.05
57.1%
253.32
19.49
0.0%
169.48
13.04
1.5 Yard 3 x Week
9
19.5
222.87
11.43
41.3%
157.11
70;5%
379.98
19.49
0.0%
244.93
12.56
1.5 Yard 4 x Week
1
26.0
290.00
11.15
42.8%
216.64
74.7%
506.64
19.49
0.0%
320.39
12.32
1.5 Yard 5 x Week
1
32.5
353.00
10.86
44.3%
280.30
79.4%
633.30
19.49
0.0%
382.63
11.77
1.5 Yard 6 x Week
1
39.0
417.37
10.70
45.1%
342.59
82.1%
759.96
19.49
0.0%
434.25
11.13
1.5 Yard 7 x Week
1
45.5
505.50
11.11
43.0%
381.12
75.4%
886.62
19.49
0.0%
N/A
2 Yard 1 x Week
70
8.7
120.43
13.90
28.7%
48.45
40.2%
168.88
19.49
0.0%
136.38
15.74
2 Yard 2 x Week
61
17.3
210.41
12.14
37.7%
127.35
60.5%
337.76
19.49
0.0%
219.76
12.68
2 Yard 3 x Week
39
26.0
300.40
11.55
40.7%
206.24
68.7%
506.64
19.49
0.0%
312.47
12.02
2 Yard 4 x Week
11
34.7
391.06
11.28
42.1%
284.46
72.7%
675.52
19.49
0.0%
393.21
11.34
2 Yard 5 x Week
5
43.3
481.73
11.12
43.0%
362.67
75.3%
844.40
19.49
0.0%
473.94
10.94
2 Yard 6 x Week
6
52.0
570.33
10.97
43.7%
442.95
77.7%
1,013.28
19.49
0.0%
568.01
10.92
2 Yard 7 x Week
3
60.7
690.76
11.39
41.6%
491.40
71.1%
1,182.16
19.49
0.0%
N/A
Handout-Option 3 18 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 3
Compactor
Service
Description
Number of
Customers
Loose
Yds/Load'
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
1 Yard per Load
-
3.0
26.93
8.98
- 0.0%
26.93
8.98
30.31
10.10
2 Yard per Load
-
6.0
53.86
8.98
- 0.0%
53.86
8.98
60.62
10.10
3 Yard per Load
-
9.0
80.79
8.98
- 0.0%
80.79
8.98
90.93
10.10
4 Yard per Load
-
12.0
107.72
8.98
- 0.0%
107.72
8.98
121.24
10.10
8 Yard per Load
3
24.0
400.08
16.67
- 0.0%
400.08
16.67
242.48
10.10
15 Yard per Load
2
45.0
322.80
7.17
- 0.0%
322.80
7.17
420.60
9.35
20 Yard per Load
11
60.0
398.92
6.65
- 0.0%
398.92
6.65
560.80
9.35
25 Yard per Load
1
75.0
475.06
6.33
- 0.0%
475.06
6.33
701.00
9.35
30 Yard per Load
90.0
551.21
6.12
- 0.0%
551.21
6.12
841.20
9.35
'Assumes 3 to 1 compaction
Handout-Option 3 19 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 3
Debris Box
Service
Description
Number of
Customers
Loose
Yds/Load
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
7 Yard per Load
1
7.0
136.72
19.53
- 0.0%
136.72
19.53
N/A
10 Yard per Load
129
10.0
169.89
16.99
- 0.0%
169.89
16.99
213.28
21.33
20 Yard per Load
-
20.0
N/A
N/A
320.60
16.03
25 Yard per Load
84
25.0
284.73
11.39
- 0.0%
284.73
11.39
N/A
30 Yard per Load
30.0
N/A
N/A
427.67
14.26
40 Yard per Load
2
40.0
455.48
11.39
- 0.0%
455.48
11.39
554.87
13.87
Handout-Option 3 20 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 3
Medical
Service
Description
Number of
Customers
Loose
Gal/Load
Current
$/Gal
Recology Ashland
$Increase %Increase
Proposed
$/Gal
Medford
In City $/Gal
1 Gallon Medical Waste
40
1.0
15.10
2.16
1.81
12.0%
16.91
2.42
17.00
2.43
2 Gallon Medical Waste
24
2.0
22.66
2.27
2.72
12.0%
25.38
2.54
21.22
2.12
6 Gallon Medical Waste
1
6.0
52.90
2.65
6.35
12.0%
59.25
2.96
N/A
15 Gallon Medical Waste
34
15.0
21.39
0.86
2.57
12.0%
23.96
0.96
21.27
0.85
34 Gallon Medical Waste
23
34.0
42.79
1.43
5.13
12.0%
47.92
1.60
30.64
1.02
Handout-Option 3 21 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
Three Year Rate Plan
Option 4
23.3%
Handout-Option 4 22 of 28 11/30/20115:00 PM
Current
Percent
Proposed
Percent
Proposed
Percent
Proposed
Revenue
Increase
2012
Increase
2013
Increase
2014
Residential
$1,836,568
0.0%
$1,836,568
3.7%
$1,904,521
3.7%
$1,974,988
Commercial(Cans)
$310,225
0.0%
$310,225
3.7%
$321,704
3.7%
1$333,607
Commercial(Bins)
$1,109,305
30.0%
$1,442,111
11.3%
$1,605,069
11.3%
$1,786,442
Debris Box
$349,605
0.0%
$349,605
3.7%
$362,540
3.7%
$375,954
Compactor
$120,760
0.0%
$120,760
3.7%
$125,228
3.7%
$129,862
Medical
$31,353
0.0%
$31,353
3.7%
$32,513
3.7%
$33,716
$3,757,816
8.9%
$4,090,622
6.4%
$4,351,576
6.5%
$4,634,569
23.3%
Handout-Option 4 22 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 4
Residential
Service
Description
Number of
Customers
Current
Recology Ashland
$Increase %Increase
Proposed
Medford
In City County
32 Gallon
5,703
16.61
- 0.0%
16.61
15.63
16.71
64 Gallon
12
33.22
- 0.0%
33.22
26.19
28.36
96 Gallon
2
49.83
- 0.0%
49.83
36.76
40.01
96 Gallon Yard Debris
1,899
5.65
- 0.0%
5.65
Stickers
548`
35.05
- 0.0%
35.05
Yellow Bags
1 191*1
23.27
- 0.0%
23.27
` Sticker and yellow bag customers do not subscribe to regular weekly service.
Handout-Option 4 23 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 4
Commercial Can Service
Service
Description
Number of
Customers
Yards/
Month
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
32 Gallon 1 x Week
380
0.7
16.61
24.20
- 0.0%
16.61
24.20
15.63
22.77
32 Gallon 2 x Week
1
1.4
33.22
24.20
- 0.0%
33.22
24.20
31.26
22.77
32 Gallon 3 x Week
-
2.1
49.83
24.20
- 0.0%
49.83
24.20
46.89
22.77
32 Gallon 4 x Week
-
2.7
66.44
24.20
- 0.0%
66.44
24.20
62.52
22.77
32 Gallon 5 x Week
-
3.4
83.05
24.20
- 0.0%
83.05
24.20
78.15
22.77
32 Gallon 6 x Week
-
4.1
99.66
24.20
0.0%
99.66
24.20
93.78
22.77
64 Gallon 1 x Week
119
1.4
33.22
24.20
- 0.0%
33.22
24.20
26.19
19.08
64 Gallon 2 x Week
2
2.7
66.44
24.20
- 0.0%
66.44
24.20
52.38
19.08
64 Gallon 3 x Week
1
4.1
99.66
24.20
- 0.0%
99.66
24.20
78.57
19.08
64 Gallon 4 x Week
-
5.5
132.88
24.20
- 0.0%
132.88
24.20
104.76
19.08
64 Gallon 5 x Week
-
6.9
166.10
24.20
- 0.0%
166.10
24.20
130.95
19.08
64 Gallon 6 x Week
3
8.2
199.32
24.20
- 0.0%
199.32
24.20
157.14
19.08
96 Gallon 1 x Week
49
2.1
49.83
24.20
- 0.0%
49.83
24.20
36.76
17.85
96 Gallon 2 x Week
2
4.1
99.66
24.20
- 0.0%
99.66
24.20
73.52
17.85
96 Gallon 3 x Week
1
6.2
149.49
24.20
- 0.0%
149.49
24.20
110.28
17.85
96 Gallon 4 x Week
-
8.2
199.32
24.20
- 0.0%
199.32
24.20
147.04
17.85
96 Gallon 5 x Week
-
10.3
249.15
24.20
- 0.0%
249.15
24.20
183.80
17.85
96 Gallon 6 x Week
1 31
12.4
1 298.98
24.20
- 0.0%
298.98
24.20
1 220.56
17.85
Handout-Option 4 24 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 4
Commercial Bin Service
Service
Description
Number of
Customers
Yards/
Month
Current
$/Yard
Discount
Recology Ashland
$ Increase %Increase
Proposed
$/Yard
Discount
Medford
In City $/Yard
S Yard lx Week
109
4.3
84.44
19.49
-
(11.05)
-13.1%
73.39
16.94
-
N/A
-
1 Yard 2 x Week
7
8.7
139.13
16.05
17.6%
7.65
5.5%
146.78
16.94
0.0%
N/A
1 Yard 3 x Week
13.0
193.81
14.91
23.5%
26.36
13.6%
220.17
16.94
0.0%
N/A
1 Yard 4 x Week
-
17.3
248.49
14.34
26.4%
45.08
18.1%
293.57
16.94
0.0%
N/A
1 Yard 5 x Week
1
21.7
303.15
13.99
28.2%
63.81
21.0%
366.96
16.94
0.0%
N/A
1 Yard 6 x Week
1
26.0
357.83
13.76
29.4%
82.52
23.1%
440.35
16.94
0.0%
N/A
1.5 Yard 1 x Week
87
6.5
94.14
14.48
25.7%
15.95
16.9%
110.09
16.94
0.0%
104.61
16.09
1.5 Yard 2 x Week
30
13.0
161.27
12.41
36.3%
58.90
36.5%
220.17
16.94
0.0%
169.48
13.04
1.5 Yard 3 x Week
9
19.5
222.87
11.43
41.3%
107.39
48.2%
330.26
16.94
0.0%
244.93
12.56
1.5 Yard 4 x Week
1
26.0
290.00
11.15
42.8%
150.35
51.8%
440.35
16.94
0.0%
320.39
12.32
1.5 Yard 5 x Week
1
32.5
353.00
10.86
44.3%
197.44
55.9%
550.44
16.94
0.0%
382.63
11.77
1.5 Yard 6 x Week
1
39.0
417.37
10.70
45.1%
243.15
58.3%
660.52
16.94
0.0%
434.25
11.13
1.5 Yard 7 x Week
1
45.5
505.50
11.11
43.0%
265.11
52.4%
770.61
16.94
0.0%
N/A
2 Yard 1 x Week
70
8.7
120.43
13.90
28.7%
26.35
21.9%
146.78
16.94
0.0%
136.38
15.74
2 Yard 2 x Week
61
17.3
210.41
12.14
37.7%
83.16
39.5%
293.57
16.94
0.0%
219.76
12.68
2 Yard 3 x Week
39
26.0
300.40
11.55
40.7%
139.95
46.6%
440.35
16.94
0.0%
312.47
12.02
2 Yard 4 x Week
11
34.7
391.06
11.28
42.1%
196.07
50.1%
587.13
16.94
0.0%
393.21
11.34
2 Yard 5 x Week
5
43.3
481.73
11.12
43.0%
252.18
52.3%
733.91
16.94
0.0%
473.94
10.94
2 Yard 6 x Week
6
52.0
570.33
10.97
43.7%
310.37
54.4%
880.70
16.94
0.0%
568.01
10.92
2 Yard 7 x Week
1 3
1 60.7
1 690.76
11.39
41.6%
336.72
48.7%
1,027.48
16.94
0.0%
N/A
Handout-Option 4 25 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 4
Compactor
Service
Description
Number of
Customers
Loose
Yds/Load'
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
1 Yard per Load
-
3.0
26.93
8.98
- 0.0%
26.93
8.98
30.31
10.10
2 Yard per Load
-
6.0
53.86
8.98
- 0.0%
53.86
8.98
60.62
10.10
3 Yard per Load
-
9.0
80.79
8.98
- 0.0%
80.79
8.98
90.93
10.10
4 Yard per Load
-
12.0
107.72
8.98
- 0.0%'
107.72
8.98
121.24
10.10
8 Yard per Load
3
24.0
400.08
16.67
- 0.0%
400.08
16.67
242.48
10.10
15 Yard per Load
2
45.0
322.80
7.17
- 0.0%
322.80
7.17
420.60
9.35
20 Yard per Load
11
60.0
398.92
6.65
- 0.0%
398.92
6.65
560.80
9.35
25 Yard per Load
1
- 75.0
475.06
6.33
- 0.0%
475.06
6.33
701.00
9.35
30 Yard per Load
I -
1 90.0
1 551.21
6.12
- 0.0%
551.21
6.12
1 841.20
9.35
•Assumes 3 to 1 compaction
Handout-Option 4 26 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 4
Debris Box
Service
Description
Number of
Customers
Loose
Yds/Load
Current
$/Yard
Recology Ashland
$Increase %Increase
Proposed
$/Yard
Medford
In City $/Yard
7 Yard per Load
1
7.0
136.72
19.53
- 0.0%
136.72
19.53
N/A
30 Yard per Load
129
10.0
169.89
16.99
- 0.0%
169.89
16.99
213.28
21.33
20 Yard per Load
-
20.0
N/A
N/A
320.60
. 16.03
25 Yard per Load
84
25.0
284.73
11.39
- 0.0%
284.73
11.39
N/A
30 Yard per Load
-
30.0
N/A
N/A
427.67
14.26
40 Yard per Load
2
40.0
455.48
11.39
- 0.0%
455.48
11.39
1 554.87
13.87
Handout-Option 4 27 of 28 11/30/20115:00 PM
Recology Ashland Sanitary Service
City of Ashland
First Year Rates-Option 4
Medical
Service
Description
Number of
Customers
Loose
Gal/Load
Current
$/Gal
Recology Ashland
$Increase %Increase
Proposed
$/Gal
Medford
In City $/Gal
1 Gallon Medical Waste
40
1.0
15.10
2.16
- 0.0%
15.10
2.16
17.00
2.43
2 Gallon Medical Waste
24
2.0
22.66
2.27
- 0.0%
22.66
2.27
21.22
2.12
6 Gallon Medical Waste
1
6.0
52.90
2.65
- 0.0%
52.90
2.65
N/A
15 Gallon Medical Waste
34
15.0
21.39
0.86
- 0.0%
21.39
0.86
21.27
0.85
34 Gallon Medical Waste
23
34.0
42.79
1.43
- 0.0%
42.79
1.43
30.64
1.02
Handout-Option 4 28 of 28 11/30/20115:00 PM
RATE INCREASE IMPACT--RESIDENTIAL AND COMMERCIAL CANS
Option 1 Option 2 Option 3
Number of $/Month $/Month $/Month
Residential Customers Impact Impact Impact
32 Gallon 5703 $ 1.33 $ 1.33 $
64 Gallon 12 $ 2.66 $ 2.66 $
96 Gallon 2 $ 3.99 $ 3.99 $
96 Gallon Yard Debris 1 18991 $ 0.45 1 $ 0.45 $
Stickers 1 548 $ 2.81 1 $ 2.81 $
Yellow Bags 191 $ 1.86 1 $ 1.86 $
option 1 Option 2 option 3
Number of . $/Month $/Month $/Month
Commercial Customers Impact Impact Impact Examples
State Farm, Banyan Botanicals,
CPM Real Estate,ACH, City of
32 Gallon 1 x Week 380 $ 1.33 $ 1.33 $ Ashland
32 Gallon 2 x Week 1 $ 2.66 $ 2.66 $
Enchanted Florist, CD or Not CD,
64 Gallon 1 x Week 119 $ 2.66 $ 2.66 $ Black Swan Inn
64 Gallon 2 x Week 2 $ 5.32 $ 5.32 $
64 Gallon 3 x Week 1 $ 7.97 $ 7.97 $
64 Gallon 6 x Week 3 $ 15.95 $ 15.95 $ -
Ashland Hospice, Wells Fargo,
Red's Threads, Shakespeare,
96 Gallon 1 x Week 49 $ 3.99 $ 3.99 $ - Dreamsacks
96 Gallon 2 x Week 2 $ 7.97 $ 7.97 $ -
96 Gallon 3 x Week 1 $ 11.96 $ 11.96 $ -
96 Gallon 6 x Week 3 $ 23.92 $ 23.92 1 $ -
i
1
RATE INCREASE IMPACT--COMMERCIAL BINS
Option 1 Option 2 Option 3
Commercial Bin Number of $/Month $/Month $/Month
Service Customers Examples Impact Impact Impact
City of Ashland, Caldera Brewing, Earthly
1 Yard 1 x Week 109 Goods, Puck's $ 10.13 $ 6.76 $ -
1 Yard 2 x Week 7 $ 16.70 $ 15.90 $ 29.75
1 Yard 5 x Week 1 $ 36.38 $ 47.95 $ 119.05
1 Yard 6 x Week 1 $ 42.94 $ 52.55 $ 148.81
Printfast, Panda Gardens, City of Ashland,
1.5 Yard 1 x Week 87 Martolli's $ 11.30 $ 16.66 $ 32.52
Les Schwab, the Beanery, Pasta Piatti,
1.5 Yard 2 x Week 30 Standing Stone $ 19.35 $ 27.09 $ 92.05
1.5 Yard 3 x Week 9 Winchester Inn, Omar's $ 26.74 $ 49.70 $ 157.11
1.5 Yard 4 x Week 1 $ 34.80 $ 60.13 $ 216.64
1.5 Yard 5 x Week 1 $ 42.36 $ 73.59 $ 280.30
1.5 Yard 6 x Week 1 $ 50.08 $ 81.24 $ 342.59
1.5 Yard 7 x Week 1 Plaza Inn &Suites $ 60.66 $ 107.24 $ 381.12
Miller Paint, Bloomsbury Books,
2 Yard 1 x Week 70 Shakespeare, El Paraiso $ 14.45 $ 21.83 $ 48.45
2 Yard 2 x Week 61 Grange Co-op, Darex, Brother's, Elks $ 25.25 $ 31.44 $ 127.35
2 Yard 3 x Week 39 Wild Goose, SOU, Starbuck's, YMCA $ 36.05 $ 49.57 $ 206.24
2 Yard 4 x Week 11 Holiday Inn, Skylark Assisted Living $ 46.93 $ 58.50 $ 284.46
2 Yard 5 x Week 5 SOU, Maranatha, Pub School Dist 5 $ 57.81 $ 65.99 $ 362.67
2 Yard 6 x Week 6 Wendy's, Bi-Mart $ 68.44 $ 69.86 $ 442.95
2 Yard 7 x Week 3 Ashland Springs,Ashland Food Co-op $ 82.89 $ 95.96 $ 491.40
2
a
RATE INCREASE IMPACT--DEBRIS BOX AND COMPACTORS
Option 1 Option 2 Option 3
Number of $/Pick-up $/Pick-up $/Pick-up
Debris Box Customers Impact Impact Impact Examples
7 Yard per Load 1 $ 16.41 $ 10.94 $ -
Ashland Parks,Shakespeare,
10 Yard per Load 129 $ 20.39 $ 13.59 $ - Callahan's, One-time users
Darex, Lions,Ashland Public
25 Yard per Load 84 $ 11.39 $ 22.78 $ - School Dist. 5, One-time users
40 Yard per Load 2 $ 11.39 $ 36.44 $
Option 1 Option 2 Option 3
Number of $/Pick-up $/Pick-up $/Pick-up
Compactors Customers Impact Impact Impact
Ashland Public School Dist. 5,
8 Yard per Load 3 48.01 $ 32.01 $ - Shakespeare
15 Yard per Load 21 38.74 1 $ 25.82 1 $ Safeway,Shop-N-Cart
SOU,Albertson's, Rite Aid,
20 Yard per Load 11 47.87 1 $ 31.91 $ Windmill Inn
25 Yard per Load 1 57.011 $ 38.00 $ Wal-Mart
i
3
Recology Ashland Sanitary Service Rate Comparisons
Monthly Residential Rates
Ashland
Medford
Difference
1 Can
$ 16.61
$ 15.63
$0.98
2 Cans
$ 33.22
5 26.19
$7.03
3 Cans
$ 49.83
$ 36.76
$13.07
4 Cans
$ 66.44
N/A
$3.92
96 Gallon Yard Debris
$ 5.65
$ 6.01
($0.36)
Stickers
$ 35.05
N/A
$5.88
Yellow Bags
S 23.27
$ 38.45
(515.18)
a n
$ 5.04
N/A
$14.06
Extra Small Ba
$ 2.51
$ 3.91
$21.09
Commercial Can Rates
Ashland
Medford
Difference
32 Gallon 1 x Week
$ 16.61
$ 15.63
$0.98
32 Gallon 2 x Week
$ 33.22
$ 31.26
$1.96
32 Gallon 3 x Week
$ 49.83
$ 46.89
$2.94
32 Gallon 4 x Week
$ 66.44
$ 62.52
$3.92
32 Gallon 5 x Week
$ 83.05
$ 78.15
$4.90
32 Gallon 6 x Week
$ 99.66
$ 93.78
$5.88
64 Gallon 1 x Week
$ 33.22
$ 26.19
$7.03
64 Gallon 2 x Week
$ 66.44
$ 52.38
$14.06
64 Gallon 3 x Week
$ 99.66
$ 78.57
$21.09
64 Gallon 4 x Week
$ 132.88
$ 104.76
$28.12
64 Gallon 5 x Week
$ 166.10
$ 130.95
$35.15
64 Gallon 6 x Week
$ 199.32
$ 157.14
$42.18
96 Gallon 1 x Week
$ 49.83
$ 36.76
$13.07
96 Gallon 2x Week
$ 99.66
$ 73.52
$26.14
96 Gallon 3 x Week
$ 149.49
$ 110.28
$39.21
96 Gallon 4 x Week
5 199.32
$ 147.04
$52.28
96 Gallon 5 x Week
$ 249.15
T183.86
$65.35
96 Gallon 6 x Week
I S 298.91
$ 220.56
$78.42
Medical Waste Rates
Ashland
Medford
Difference
1 Gal Sharps
$
15.10
$ 17.00
(51.90)
2 Gal Sharps
$
22.66
$ 21.22
$1.44
15 Gal Sharps
$
21.39
S 21.27
$0.12
34 Gal Sharps
$
42.79
$ 30.64
$12.15
Commercial Bin Rates
Ashland
Medford
Difference
1 Yard 1 x Week
$ 84.44
N/A
($3.38)
I Yard 2 x Week
$ 139.13
N/A
($6.76)
I Yard 3 x Week
S 193.81
N/A
($10.14)
1 Yard 4 x Week
$'248.49
N/A
($13.521
1 Yard 5 x Week
$ 303.15
N/A
($27.04)
1 Yard 6 x Week
$ 357.83
N/A
($97.80)
1.5 Yard 1 x Week
$ 94.14
$ 104.61
IS 1047)
1.5 Yard 2 x Week
$ 161.27
$ 169.48
(58.21)
1.5 Yard 3 x Week
$ 222.87
$ 244.93
($22.06)
1.5 Yard 4 x Week
$ 290.00
$ 320.39
($30.39)
1.5 Yard 5 x Week
$ 353.00
$ 382.63
($29.63)
1.5 Yard 6 x Week
$ 417.37
$ 434.25
($16.88)
1.5 Yard 7 x Week
$ 505.50
N/A
2 Yard 1 x Week
$ 120.43
$ 136.38
1535.95(
2 Yard 2 x Week
S 210.41
$ 219.76
($9.35)
2 Yard 3 x Week
$ 300.40
$ 312.47
($12.07)
2 Yard 4 x Week
$ 391.06
$ 393.21
11$2.15)
2 Yard 5 x WW 2k
5 481.73
$ 473.94
$7.79
2 Yard 6 x Week
$ 570.33
$ 568.01
$2.32
2 Yard 7 x Week
$ 690.76
N/A
Compactor Rates
Ashland
Medford
Difference
1 Yard per Load
$ 26.93
$ 30.31
($3.38)
2 Yard per Load
$ 53.86
$ 60.62
($6.76)
3 Yard per Load
$ 80.79
$ 90.93
($10.14)
4 Yard per Load
$ 107.72
$ 121.24
($13.521
8 Yard per Load
$ 215.44
$ 242.48
($27.04)
15 Yard per Load
$ 322.80
$ 420.60
($97.80)
20 Yard per Load
$ 398.92
$ 560.80
($161.88)
25 Yard r Load
$ 475.06
$ 701.00
($225.94)
30 Yard per to a d
$ 551.21
$ 841.20
1 ($289.99)
Debris(Drop)Boxes
Ashland
Medford
Difference
7 Yard per Load
$ 136.72
N/A
30 Yard per Load
$ 169.89
S 213.28
($43.39)
20 Yard per Load
N/A
S 320.60
25 Yard per Load
$ 284.73
N/A
30 Yard per Load
N/A
5 427.67
40 Yard per Load
$ 455.48
$ 554.87
($99.39)
Recology Special Programs
• Prescription Drug Boxes—Recology fabricated and donated Prescription Drug collection boxes to be
placed in the lobbies of the Ashland and Talent police departments. This keeps prescription drugs
away from children, and out of our water supply and landfills.
• Bear Proof Cart Pass Through—Recology provides bear proof carts at cost to customers within city
limits/urban growth boundary. Carts may be purchased outright, or paid for over 24 months on a "rent
to own" basis.
• Green Debris Program—easing of the requirements for participation. 12-month commitment has
been waived. This should increase participation and waste diversion.
• Ashland Recycle Center—expanded hours of operation. Now open six days per week.
• Curbside Leaf Bag Collection—in conjunction with Ashland Conservation Commission, special leaf bags
are offered at a discount. Recology has expanded its contribution allow greater participation. This
helps to keep leaves out of storm drains and landfills, and provides an outlet for customers not utilizing
the year-round green debris program.
• Free Leaf Drop-Off Days—Recology has expanded this program from two days to three days.
Customers may bring large quantities of leaves to the Ashland Recycle Center for free disposal. Again,
this helps to keep our streets, storm drains, and landfills free of leaves.
• Household Hazardous Waste Event-Recology co-sponsors household hazardous waste collection
events at Rogue Disposal and Southern Oregon Sanitation transfer stations. Recology's 2009 costs for
these events was approximately$18,000.
• Plastic Roundup—working with the Jackson County Recycling Partnership and Jackson County
SmartWorks, Recology provides volunteers and equipment at this event. Last year, over 27,000
pounds of plastics were diverted at the two Plastic Roundup locations, half of which came from the
Ashland location (with the other half coming from the Medford location).
• Urban Composting Classes—in conjunction with the Ashland Conservation Commission, Recology
sponsors four Urban Compost classes, free to the public, at the Ashland Recycle Center.
• Yellow Bag Program—continuation of program designed for seniors who do not need regular weekly
service. Pre-paid bright yellow bags are sold in packs of five, and typically help seniors to reduce their
trash service costs by putting trash out only on an "as-needed" basis.
• Sticker Program—continuation of a program for customers who do not generate large amounts of
trash. Pre-paid stickers are put on cans that are set out at curb as needed. Savings here tend to be
substantial for situations with the right circumstances.
• Summary of other programs—free electronics collection, dog adoption, clothing and shoe exchange,
fluorescent and compact fluorescent tube collection, plastic bag and plastic film collection, collection
of ink cartridges,toner, and cell phones, commercial compost program, food bank collection drop off,
Ashland Recycle Center tours, Christmas Treecycle partnership with Boy Scouts.
Recology Community Involvement
Ashland Conservation Commission—permanent seat
Ashland Wildlife Committee—consulting, assistance with deer census data, participation in RVTV
presentation
Ashland Chamber of Commerce—member, major sponsor of 4`"of July celebration, Festival of Lights,
annual Recognition Dinner. Consulting for waste reduction and waste collection at major events.
Rogue Valley Earth Day—major sponsor,consulting,fund raising
Bear Creek Festival—Zero Waste Event planner, participant
Ashland Green Business Program—consulting
North Mountain Park—presentations, educational programs
Donations—Ashland Community Hospital,Ashland Schools Foundation, Mt.Ashland "Give a Kid a Lift,"
Firehouse Five, Kiwanis,Ashland Little League,Ashland High Arts Advocates,Ashland High Drama Club,
Ashland High Water Polo, many others. Donated storage shed to Jackson County Master Recyclers.
Jackson County Recycling Partnership—member, consultant. Donated "ClearStream" containers.
Jackson County Master Recyclers—instructor, sponsor, participant,consulting. GM and spouse are
Master Recyclers, Recology has first Over Jackson County Master Recycler sanitation driver,Waste Zero
Specialist is Master Recycler.
Southern Oregon University—consulting,assistance with statistics, support of sustainability and waste
reduction programs,classroom presentations and talks.
Oregon Green Schools—participant, presenter
Association of Oregon Recyclers—member, presenter
Oregon Refuse and Recycling Association—member, past officer
Other consulting—Ashland Food Coop, YMCA,OSF, AMS,ACH,Taste of Ashland, Maranatha/Inspire
foods, others
Improvements made by Recology since acquiring Ashland Sanitary&Recycling
Recology's goal was to have a seamless transition in ownership and operation. To that end, Recology worked hard to
ensure that changes were gradual, thoughtful,and positive. To date there have been virtually no "takeaways;' and
several additions and enhancements:
• We changed our billing from monthly to quarterly. This has saved approximately 160,000 envelopes and
80,000 sheets of billing paper'per year.
• We need to pay well to attract and retain qualified employees. To that end,:Recology has given raises to all
employees. These were the first raises since the third quarter of 2008.
• Recology completely refurbished:the Ashland Recycle Center to include painting of all buildings,cleanup and
enhancement of landscape, new signage, and with city assistance, repair, resurfacing and restriping of the entire
lot. We also returned days of operation of the Center to six days per week(at time of acquisition, the Center
was closed on Mondays).
• At the Valley View Transfer Station; Recology.added a new Electronics Recycling building to improve
appearance,customer and employee safety, and to ensure confidentiality and environmental compliance. We
built a new pay station'to speed up service and to provide better/safer traffic control. There have also been
significant improvements in cleanliness and appearance, as well as addition of traffic striping, new signage, and
extensive repairs to the asphalt surfaces(to include widening of the customer exit to improve visibility and
safety). Additionally,an employee warming shed and a covered employee break area with picnic tables and
barbecue grill have been added.
• At our main office at 170.Oak St. Recology has completed extensive upgrades to the landscape to ensure that
our building"fits"with the many beautiful homes and businesses on Oak Street. We.converted the upstairs of
our building to a conference are which has been used for meetings with representatives of the Ashland
Chamber of Commerce,Ashland Conservation Commission,Jackson County Recycling Partnership,Jackson
County Master Recyclers, Southern Oregon Sustainability Business Network,Southern Oregon University, City of
Ashland representatives,and a host of others.
• Recology has created the position of Waste Zero Specialist,and has promoted the former Recycling
Coordinator to this position. Her hours worked have also expanded from part-time(26 hours per week) to
permanent full-time to better serve the sustainability and waste reduction needs of our service area.
• Our employees have all been provided new uniforms which help to promote a professional image both for the
company and the community, and to instill pride in the workforce. Additionally, we have provided new"high
visibility" clothing to improve safety for our employees and the public while they are working their routes.
• Backing accidents are the most frequent type of accidents we experience. To minimize backing accidents and to
reduce the chance of a catastrophic injury to a.child or pedestrian crossing in the "blind spot" to the rear of our
vehicles,we have added backup cameras to all of our,route vehicles. "Kick bars" have been added to our
commercial vehicles to eliminate lifting.of large containers with hooks and chains,which are very dangerous.
• In an effort to improve route efficiencies,Recology has completely re-routed our service area and introduced a .
number of different vehicles. We were able to eliminate an entire route, which translates to one less truck on
the road each service day and taking advantage of attrition, reducing the driver workforce by one driver. Re-
routing has made routes more contiguous and greatly reduced instances of two vehicles servicing the same
area. The different vehicle types have allowed us to work more safely and efficiently,and reduced the number
of times our vehicles have to"break off' of their routes to go to the Transfer Station to dump their loads,
thereby saving fuel,vehicle wear and tear,and labor.
Recology
Ashland Sanitary Service
WASTE ZERO
July 18, 2011
Martha Bennett
City Administrator
City of Ashland
20 E. Main Street
Ashland, OR 97520
Dear Ms. Bennett:
Pursuant to the terms of the franchise contract agreement between the City of Ashland and
Recology Ashland Sanitary Service, I am enclosing 2 copies of the Recology Ashland Sanitary
Service rate application package for Rate Year 2011/2012. The application, as presented,
seeks a total increase of 23.3%.
.This increase was derived using the"operating ratio" methodology (essentially, operating
expenses divided by .90)which our Vice President and Group Manager, Bruce Gondry, and I
discussed with you in our meeting of November 16, 2010. As you may recall, this is the same
methodology prescribed in our franchise agreement with Jackson County.
Additionally, I am enclosing 2 copies of the Independent Accountant's Review Report of
Recology Ashland Sanitary Service's financial statements for the period ending September 30,
2010. This review and report was performed by the Ashland accounting firm of Nagel & Padilla
LLC.
Should you desire additional copies of the rate application package and/or Independent
Accountant's Review Report, please let me know. I can make them available to you either in
hard copy or electronic forth. Recology recognizes that this is a significant increase.
Accordingly, after you have had an opportunity to review this rate application package, please
contact me so that we may schedule the appropriate resources to respond to your questions or
concerns and to provide the framework for an expeditious review process.
Respectfully,
even . DiFabion
General Manager
Enclosures
cc: Bruce Gondry, Mark Lomele, George McGrath,Tom Norris,Ann Seltzer
": Oak scree• Asniane OR 475X'80a T 54' 482 87• -ecooyyasmanesam,arvsew,ce cow
RecoloOY Ashland SonflarV Service
Rate Application for Rate Year 2012(October 1,2011-September 30,2012)
Exhibit 1
AJYnd ntc app0ollon.Exhibit I 1 7/17/20112:"PM
Base Year
Bast,Year
FY 2010
Adjustments
Adjusted
FY 2D10
Adjustments
Current Year
Rate Year
Escalation
FY 2011
Adjustments
Escalation
FY 2012
REVENUES
COLLECTION REVENUE
RECYCLING
$3,737,593
$3,737,593
3130,572
(1)
$3,868.165
$3,868,165
OTHER
56,612
18,435
(18,435) (3)
56,612
78.689
(2)
135,301
135,301
0
0
0
TOTAL REVENUE
$3,812,640
($18,435)
$3,794,205
$209,261
$0
$4,003,468
EO
§0
$4,003,666
OPERATING EXPENSES
-
DISPOSAL
WAGES AND BENEFITS
$1,130,176
1,812,080
$1,130,176
($64,344)
(4)
31,065,832
$29.240
(4)
$1,095.072
INSURANCE
J4,079
1,812,080
(31,884)
(5)
1,780,196
14,073
(5)
1,794,269
FUEL AND OIL
165,858
34,079
21,342
(6)
55,421
46,713
(6)
102,134
TRUCK SUPPLIES 8 REPAIR PARTS
185,469
165.858
185,469
34,973
(7)
200,831
$6.025
(B)
206,856
EQUIPMENT LEASE
25.746
25,746
109.694
(9)
$5564
,
(8)
191,033
$5.731
(8)
196,764
DEPRECIATION
240.655
(3225.008) (10)
15,647
340
(10)
135.440
25,072
9
O
165,987
FRANCHISE FEES
OTHER OPERATING
202,540
114,472
202,540
(9.132)
(11)
15.987
193.408
(193,408)
(11)
0
GENERAL 8 ADMINISTRATIVE
317,847
($15.946) (12)
($4,988) (13)
98,526
312.659
$191,769
$2,956
(8)
101,482
$3,044
(8)
104,526
(13)
$8,339
(8)
512,967
$2,384
(13)
$8,590
(0)
523,941
TOTAL OPERATING EXPENSES
$4,228,922
($245.942)
§3,982,980
$252,758
§18,859
$4,252,597
($75,926)
$23.390
$4,200,061
NET OPERATING INCOME(LOSSI
($416,282)
($188.775)
TARGET OPERATING RATIO
(E2g9 iJl)
($198,595)
TARGET REVENUE FROM OPERATIONS
90.00Y.
$4.666,734
ADD PASS THROUGH
FRANCHISE FEES
(I1)
2.38.496
TOTAL REVENUE REQUIREMENT
,
$4.905,231
RATE YEAR REVENUE OEFICIENCYI(EXCESS)
$901,765
PERCENT INCREASE(DECREASE)REQUIRED
--•e�•u•
(14)
23.3%
AJYnd ntc app0ollon.Exhibit I 1 7/17/20112:"PM
Recology Ashland Sanitary Service
Rate Application for Rate Year 2012(October 1,2011-September 30,2012)
Exhibit 1-Notes
Exhibit 1 summarizes the 2010 fiscal year revenues and operating costs with adjustments for
discretionary and onetime revenues and expenses.This schedule also projects fiscal 2011 and 2012
revenues and operating costs. Revenues and expenses for fiscal 2010 reflected 11.5 months from the
inception of Recology ownership on October 15,2009 to September 30,2010,our fiscal year end. Two
supporting exhibits are included,which provide the detail for two of the calculations and are noted
below. Exhibit 1 results in a 23.3%rate increase needed to meet the target operating ratio of 0.9 for the
rate year 2012.
(1) Collection Revenues
2011
Refuse collection revenue was increased by$130,572 to adjust revenues to reflect a full year
and to reflect changes in the customer base for residential,commercial and debris box based on
current trends. Monthly business has declined slightly compared year-to-date.
2012
Refuse collection revenue was held flat assuming the downward economic trend will end in
2012.
(2) Recycling Revenue
2011
Recycling revenue was increased by$78,689 based on year-to-date volume trends and
commodity pricing.
2012
Recycling revenue was held flat assuming volumes will remain steady and pricing will remain
favorable.
(3) Other Revenue
2010
Other revenue for fiscal 2010 was reduced to zero to remove onetime revenues,revenues
associated with the interest charge on delinquent accounts and other miscellaneous non-
regulated revenues.
(4) Disposal
2011
Disposal expense was reduced by($64,344)based on two factors. First,year-to-date actual
expenses and current trends were used to project the disposal activity for the year. Second,
expenses were adjusted the last three months of the fiscal year for the 2.5%disposal rate
increase at Dry Creek Landfill effective July 1,2011.
2
Exhibit 1-Notes
2012
Disposal expense was increased by$29,240 for fiscal 2012. Volumes were held flat. Expenses
were adjusted October 2011 through June 2012 to reflect the 2.5%increase at Dry Creek Landfill
effective July 1, 2011 and adjusted July 2012 to September 2012 for an assumed 3.5%increase
that would became effective July 1,2012.
(5) Wages and Benefits
2011
Since the acquisition of the company,the routes have been restructured to make them as
efficient as possible. Expenses for fiscal 2011 were reduced($31,884)to reflect the current
routing and staffing levels.
2012
We do not anticipate further gains in route efficiency for fiscal 2012. Expenses were increased
$14,073 based on anticipated wage and benefit changes. Wages and benefits were estimated
based on a 3%increase in wages,pension,and health and welfare,partially offset by a ($19,371)
reduction in worker's compensation insurance due to the implementation of Recology's self
insurance program.
(6) Insurance
2011
Insurance expense was increased$21,342 based on current year-to-date expense trends. In
2011 the company implemented the Recology self-insurance programs. These programs
provide additional coverage along with higher limits." For 2011, as the Recology insurance
programs were being implemented to replace previous coverage,the administrative cost
allocation was being absorbed by the corporate office.
2012
Insurance expense was increased by$46,713 based on the anticipated costs through our
Recology self-insurance program. For fiscal 2012 we anticipate an additional allocation for
administration of the corporate self-insurance. This charge covers both auto and general
liability and worker's compensation.
(7) Fuel and Oil
2011
Fuel and oil expense was increased$34,973 based on current expense trends. Year-to-date fuel
prices have increased by about 25%over last year.
(8) Escalation
Expenses have been escalated based on the May 2011 CPI All Urban Consumers West-A index
of 3.0%.
3
Exhibit 1-Notes
(9) Equipment leases
2011
Equipment lease expense was increased$109,694 in fiscal 2011 based on the lease schedule
provided as Exhibit 2. Equipment is purchased through Recology's leasing department and
leased back to the divisions. The lease for new equipment is based on the actual purchase cost
of the equipment plus a cost to finance which is currently 5.3%. Since October 2010,the
company acquired new computer terminals and printers, recycling bins,carts and debris boxes
to support the operation. In addition,since the acquisition of company the routes have been
restructured to make them as efficient as possible. As part of this restructuring, Recology
Ashland Sanitary Service acquired several used trucks to aid efficiencies and to replace worn-out
trucks. For these used trucks,the company has either taken over the lease from another
company or is being charged a lease based on fair market value of the equipment which is
typically 20%of its original purchase cost.
2012
For fiscal 2012 the company plans to purchase additional recycling bins,carts, and backup
cameras to support its operation. Lease expense was increased$25,072 to agree with the lease
schedule provided as Exhibit 2.
(10) Depreciation
2010
Recology purchased Ashland Sanitary Service on October 15,2009. At that time the assets of
Ashland Sanitary Service were assessed for their market value. This market value is part of the
purchase accounting and includes assets that may have been fully written off by the prior
owner. Expenses were reduced($255,008)to remove assets that would be fully written off by
2012. The remaining assets are presented in Exhibit 3.
2011
Depreciation expense was increased$340 to agree with Exhibit 3.
(11) Franchise Fees
2011
Franchise fees have been adjusted to represent 5%of the refuse collection revenue as required
by the franchise agreement.
2012
Franchise fees have been reduced to zero in the operating section and have been recalculated
below the line based on 5%of the revenue requirement from collection services(Total Revenue
Requirement minus Recycling Revenue).
4
Exhibit 1-Notes
(12) Other Expenses
2010
Other expenses were reduced by($15,946)to remove onetime expense s related to a loss on
disposition of assets.
(13) General and Administrative
2010
General and Administrative expenses have been reduced by($4,988)for donations. Donations
are considered to be discretionary expenses and with this adjustment have been reduced to
zero.
2011
Expenses were increased$191,769 for an allocation of Recology corporate services. Corporate
services include Information Technology,Human Resources,Corporate Accounting, Corporate
Management,Environmental Compliance and Sustainability. These services were provided in
2010 but the cost for that year was absorbed by the corporate office.
2012
Expenses were increased$2,384 to increase the allocation of Recology corporate services by
about 1.2%.
(14) Percent of Increase/(Decrease)Required
The Rate Year Revenue Deficiency/(Excess)divided by the Collection Revenue determines the
percent of revenue adjustment required for the rate year(FY 2012)of 23.3%.
5
Exhibit 2
Recology Ashland Sanitary Service
Lease Equipment
1r )g Mr
Item Unit Lease Tn
MEOW
y
y��:..EE�1,,y; �•
{.. {_
[ „ Actual Actual
t �-
IY�llIn
Acquisition t 131111 r*�` �h ' Start
Act; R' =2..
Actual
Rate
Pro'etteil
1 ..
Pro edted �.
�t?11YR7...
x`�
ti&n w.
, .'-,
8/31/2015
830.39
.BI- Date
,,Y End
t..
FY 2030.;
FY 2b10"
FY-2013:
FY 2012".
rrt'<en.
Number Numbe .Number uanntY. .*.e a•,
..
Descrlptlon fir...-.:
9°
- .C[ost•.,:,-.
-`
Rate, .
y„ :`.:.:
Rate`. =ACguvedc-
.'°ii
+s
alDa[e a a bate" -
Ezpense
Rate Expense
Rate Expense
Rate Expens e
206877 07102 1103-009 1 01 FORD F350 PU W/WELDER,AIR
15,000.00
289.99
281.35 11/5/2009
8/1/2010 7/31/2015
579.98
562.70
3,376.20
3,376.20
9s49r
14LU4
ALUS-uiz
1 US LUUAL SUYU�YLI I [VU S/L
42,9S9.46
830.39
805.79
2/1/2003
9/1/2010
8/31/2015
830.39
805.79
9,669.48
9,669.48 '
166799
14204
1103-012
1 CRTdm CATALYST FILTER SYSTEM
8,136.50
125.75
152.62
6/1/2007
9/1/2010
5/31/2014
125.75
152.62
1,831.44
1,831.44
96621
14210
1103-013
1 03 LODAL 30YD SPLIT EVO 5/L
42,959.46
830.39
805.79
3/1/2003
9/1/2010
8/31/2015
830.39 _
805.79
9,669.48
9,669.48
166772
14210
1103-013
1 CRTdm CATALYST FILTER SYSTEM
8,136.50
125.75
152.62
6/1/2007
9/1/2010
5/31/2014
125.75
152.62
1,831.44
1,831.44
96639
14211
1103-013
1 03 LODAL 30YD SPLIT EVO S/L
42,959.46
830.39
805.79
3/1/2003
9/1/2010
8/31/2015
830.39
805.79
9,669.48
9,669.48
166764
14211
1103-013
1 CRTdm CATALYST FILTER SYSTEM
8,136.50
125.75
152.62
6/1/2007
9/1/2010
5/31/2014
125.75
152.62
1,831.44
1,831.44
98941
14215
1103-012
1 03 LODAL 30YD SPLIT EVO S/L
42,959.46
830.39
805.79
5/1/2003
9/1/2010
8/31/2015
830.39
805.79
9,669.48
9,669.48
16673014215
1103-012
S CRTdm CATALYST FILTER SYSTEM
8,136.50
125.75
152.626/1/2007
9/1/2010
5/31/2014
125.75
152.62
1,831.44
1,831.44
79847
15193
AS-001
1 LODAL 30YD SPLIT EVO S/L
43,296.86
836.92
812.12
5/1/2002
10/1/2009
9/30/2014
10,043.04
9,745.44
9,745.44
9,745.44
163117
15193
AS-001
1 CRTdm CATALYST FILTER SYSTEM
8,136.50
124.74
169.89
3/1/2007
3/1/2007
2/28/2014
1,496.88
2,038.68
2,038.68
2,038.68
87839
15217
AS-003
1 03 AUTOCAR CHASSIS
21,825.30
421.88
409.38
9/1/2002
2/1/2010
1/31/2015
3,375.04
3,275.04
4,912.56
4,912.56
206519
AS-002
1 TIMECLOCK PLUS HAND SCANNER
3,331.32
64.40
62.49
11/1/2009
12/1/2009
10/31/2014
644.00
624.90
749.88
749.88
209373
AS-002
7 WYSE V10L THIN CLIENTS
3,297.68.
63.77
61.85
1/1/2010
1/1/2010
12/31/2014
573.93
556.65
742.20
742.20
209381
AS-002
1 CISCO ASA 5505 APPLIANCE
679.32
13.13
12.74
1/1/2010
1/1/2010
12/31/2014
118.17
114.66
152.88
152.88
209390
AS-002
8 VIEWSONIC 191N LCD MONITORS
1,458.72
28.24
27.36
1/1/2010
1/1/2010
12/31/2014
254.16
246.24
328.32
328.32
209402
AS-002
1 LEXMARK 4227 PRINTER
2,519.79
48.72
47.26
1/1/2010
1/1/2010
12/31/2014
438.48
425.34
567.12
567.12
209411
AS-002
1 APC SMARTUPS US8 SERVER
300.15
5.80
5.63
1/1/2010
1/1/2010
12/31/2014
52.20
50.67
67.56
67.56
209429
AS-002
1 LEXMARK MF LASERPRINTER
4,992.40
96.52
93.64
1/1/2010
1/1/2010
12/31/2014
868.68
842.76
1,123.68
1,123.68
209437
AS-002
1 SILEX 4 PORT USB DEVICE/CABLES
493.00
9.53
9.25
1/1/2010
1/1/2010
12/31/2014
85.77
83.25
111.00
111.00
209445
AS-002
1 ADDONICS POCKET USB ADAPTOR
120.06
2.32
2.25
1/1/2010
1/1/2010
12/31/2014
20.88
20.25
27,00
27.00
209453
AS-002
1 LEXMARK T654DTN LASERPRINTER
2,361.12
45.64
44.291/1/2010
1/1/2010
12/31/2014
410.76
398.61
531.48
531.48
209461
AS-002
1 SOURCE TECH SECURE MICR PRINTR
882.69
17,06
16.56
1/1/2010
1/1/2010
12/31/2014
153.54
149.04
198.72
198.72
209470
AS-002
1 CISCO CATALYST 2960
883.36
17.08
16.57
1/1/2010
1/1/2010
12/31/2014
153.72
149.13
198.84
198.84
211668
AS-004
100 32GAL TOTERS,DARK COOL GRAY
3,490.00
67.00
65.46
2/1/2010
2/1/2010
1/31/2015
536.00
523.68
785.52
785.52
216127
1103-005
100 64GAL EVR TOTERS,H.BLUE
4,451.00
86.00
83.49
4/1/2010
4/1/2010
3/31/2015
516.00
500.94
1,001.88
1,001.88
217664
1103-006
200 18GAL CURBSIDE BINS,GREY
1,965.00
38.00
36.86
4/1/2010
4/1/2010
3/31/2015
228.00
221.16
442.32
442.32
229163
1103-008
100 64GAL EVR TOTERS,H.BLUE
4,111.67
80.00
77.12
7/1/2010
7/1/2010
6/30/2015
240.00
231.36
925.44
925.44
229171
1103-008
100 96GAL EVR TOTERS,GRAY
4,611.66
89.00
86.50
7/1/2010
7/1/2010
6/30/2015
267.00
259.50
1,038.00
1,038.00
229180
1103-008
100 96GAL EVR TOTERS,GREEN
4,611.66
89.00
86.50
7/1/2010
7/1/2010
6/30/2015
267.00
259.50
1,038.00
1,038.00
233584
1103-010
200 LEGAL RECYCLE BINS,GREY
1,965.00
38.00
36.86
8/1/2010
8/1/2010
7/31/2015
76.00
73.72
442.32
442.32
218122
100 64GAL EVR TOTERS,GRAY
4,500.86
87.00
84.42
4/1/2010
4/1/2010
3/31/2015
522.00
506.52
1,013.04
1,013.04
Total on
hand 9/30/2010
343,668.94
25,745.79
25,693.38
77,561.76
77,561.76
FY2O11 Additions
167370
08095
1104-005
1 HYSTER H60FT FORKLIFT
34,140.88
527.68
712.86
6/1/2007
6/1/2007
12/31/2010
2,138.58
0.00
49947
10192
1103-015
1 00 VOLVO XPEOITOR CHASSIS
20,138.57
389.27
377.74
7/1/2000
12/1/2010
11/30/2015
3,777.40
4,532.88
51983
10192
1103-015
1 18YD BETA LEACH BODY
12,914.41
249.63
242.23
9/1/2000
12/1/2010
11/30/2015
2,422.30
2,906.76
182254
10192
1103-015
1 CRTdm CATALYST FILTER SYSTEM
8,762.50
121.55
171.45
6/1/2008
6/1/2008
5/31/2015
2,057.40
2,057.40
210761
10256
1103-021
1 07 PETERBILT RL W/SPLIT BODY
209,040.00
3,053.86
3,920.94
2/9/2010
1/1/2011
4/30/2011
15,683.76
0.00
272305
10256
1103-021
1 DMV USE TAX
8,788.00
169.90
164.84
4/1/2011
4/1/2011
4/30/2011
339.80
0.00
131131
12187
1103-018
1 02 FREIGHTLINER W/AMREP BODY
13,400.00
259.01
251.34
4/1/2006
1/1/2011
12/31/2015
2,262.06
3,016.08
66974
14150
1103-024
1 02 FREIGHTLINER FL60
11,164.40
213.82
209.41
9/1/2001
3/1/2011
2/29/2016
1,465.87
2,512.92
Ashland Leases(revised)-Ashland Leases
6
1129/2011 12:49 PM
Exhibit 2
Recology Ashland Sanitary Service
Lease Equipment
7�,,
�Blllln
�, �9 �9
x,Blllio I
Acr--s-SIP
ADatel, Expense?.;: Rate
" '
Item Unit Lease ;P A 5ulsluon 'RS
�. # , ; Agate .
Start
End
3/1/2009
FY 2010. FRate
FY 2012
Number Number, Number Quantity Description i' Cost a `-
Acquired
Date
1 09 FREIGHTLINER SOYD SIDE LOAD
21,100.00
Ezpense�Rate:Expense,
RVProjetted
ate Expense
68494 14150 1103-024 1 HEIL IOYD SIDE LOADER BODY 7,373.00 142.54
138.29 10/1/2001
3/1/2011
2/29/2016
968.03
1,659.48
195362 14150
1103.024
1 HORIZON MUFFLER SYSTEM
15,432.75
204.28
289.47
3/1/2009
3/1/2009
2/29/2016
3,473.64
3,473.64
223861 14433
1103-026
1 09 FREIGHTLINER SOYD SIDE LOAD
21,100.00
407.92
395.77
6/8/2010
4/1/2011
3/31/2016
2,374.62
4,749.24
223870 14434
1103.026
1 09 FREIGHTLINER IOYD SIDE LOAD
21,100.00
407.92
395.77
6/8/2010
4/1/2011
3/31/2016
2,374.62
4,749.24
42032 20051
1104-004
1 CATERPILLAR 92BG WHEEL LOADER
23,045.40
445.46
432.26
11/1/1999
12/1/2010
12/31/2010
4,322.60
0.00
52134 20055
1104-004
1 CAT 963 TRACK LOADER
15,044.75
290.85
282.19
9/1/2000
12/1/2010
12/31/2010
2,821.90
0.00
242536 20055
1104-004
1 CAT 963 LOADER REPAIR
13,326.17
257.63
249.96
11/1/2010
11/1/2010
12/31/2010
2,749.56
0.00
244831
1103-016
100 64GAL EVR TOTERS,H.BLUE
4,515.00
87.00
84.69
12/1/2010
12/1/2010
11/30/2015
846.90
1,016.28
265893
1103-020
200 18GAL CURBSIDE BINS
2,200.52
42.00
41.27
1/1/2011
1/1/2011
12/31/2015
371.43
495.24
265922
1103-020
100 32GAL TOTERS,DARK COOL GRAY
3,528.50
68.00
66.18
1/1/2011
1/1/2011
12/31/2015
595.62
794.16
265931
1103-020
200 64GAL EVR TOTERS,H.BLUE
8,007.00
156.00
150.19
1/1/2011
1/1/2011
12/31/2015
1,351.71
1,802.28
265949
1103-020
100 96GAL EVR TOTERS,GREEN
4,503.50
87.00
84.47
1/1/2011
1/1/2011
12/31/2015
760.23
1,013.64
268568
1103-023
3 40YD DEBRIS BOXES
21,645.00
418.47
405.99
3/1/2011
3/1/2011
2/29/2016
2,841.93
4,871.88
268576
1103-023
3 40YD DEBRIS BOXES
21,645.00
418.47
405.99
3/1/2011
3/1/2011
2/29/2016
2,841.93
4,871.88
271468
1103-025
10 2YD R/L CONTAINERS
5,650.00
109.30
105.98
4/1/2011
4/1/2011
3/31/2016
635.88
1,271.76
272532
1103-027
200 96GAL EVR TOTERS,GREEN
9,058.00.
174.00
169.90
4/1/2011
4/1/2011
3/31/2016
1,019.40
2,038.80
272541
1103-027
200 32GAL TOTERS,DARK COOL GRAY
7,108.00
136.00
133.32
4/1/2011
4/1/2011
3/31/2021
799.92
1,599.84
236451
1103-010
100 32GAL TOTERS,DARK COOL GRAY
3,665.00
71.60
68.74
9/1/2010
9/1/2010
8/31/2015
824.88
824.88
Total FY2011 Additions
526,296.35
0.00
0.00 62,121.97
50,258.28
FY2012 Additions
1,000 Carts-96 gal Heavy Duty
47,000.00
$908.64
881.57
10/1/2011
9/30/2016
0.00
10,578.84
800 Carts-64 gal Heavy Duty
32,800.00
5634.12
615.23
12/1/2011
11/30/2016
0.00
6,152.30
600 Curbside Bins-IS gallon
4,800.00
$92.80
90.03
12/1/2011
11/30/2016
0.00
900.30
600 Carts-32 gal Heavy Duty
21,600.00
$417.59
. 405.15
12/1/2011
11/30/2016
0.00
4,051.50
16 Monitor Cameras,Intec
44,800.00
$866.11
840.31
10/1/2011
9/30/2016
0.00
10,083.72
0.00
0.00
Total FY2012 Additions
151,000.00
0.00
0.00 0.00
31,766.66
Total
1,020,965.29
25,745.79
25,693.38 139,683.73
159,586.70
Ashland Leases(revised)-Ashland Leases - 7 11/29/2011 12:49 PM
204302 14402 1 08 INTL 12YD SIDE LOAI
232531 1 VOICE&DATA CABLING
Exhibit 3
Recology Ashland Disposal
Depreciation
10/15/2009 10/15/2009 72 90,000.00 14,993.15 75,006.85 14,993.15 15,000.00 15,000.00
8/1/2010 2/1/2010 120 9,873.00 654.23 9,218.77 654.23 987.30 987.30
99,873.00 15,647.38 84,225.62 15,647.38 15,987.30 15,987.30
Ashland Depreciation•Ashland Depreciation B 7/12/2011 2:29 PM
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Financial Statements
As of and for the period ended
September 30, 2010
(With Independent Accountant's Review
Report Thereon)
NAGEL &
PA D I L LA LLC
as wauc nso MM uro��MKS
Independent Accountant's Review Report
May 16', 2011
To the Board of Directors of
Recology Ashland Sanitary Service
We have reviewed the accompanying balance sheet of Recology Ashland Sanitary
Service (the Company) as of September 30, 2010, and the related statements of
operations and stockholder's investment and cash flows for the period from October
15, 2009 (inception) through September 30, 2010, in accordance with statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. All information included in these financial statements is
the representation of management.
A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly we do not express such an opinion.
Management Is responsible for the preparation and fair presentation of the financial
statements In accordance with accounting principles generally accepted in the United
States of America and for designing, implementing, and maintaining internal control
relevant to the preparation and fair presentation of the financial statements.
Our responsibility is to conduct the review In accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. Those standards require us to perform procedures to
obtain limited assurance that there are no material modifications that should be
made to the financial statements.
4
Based on our review, we are not aware of any material modifications that should be
made to the accompanying financial statements in order for them to be In conformity
with generally accepted accounting principles in the United States of America.
PS�,� C PA
Julie Pa a, CPA
Nagel & Padilla, LLC
Certified Public Accountants and Business Advisors
290 N Main St,Suite 8 1 Ashland,OR 97520 10:541.488.1551 1 F:541.488.1552 1 www.nagelpadilia.com
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Balance Sheet
September 30, 2010
Assets
Current assets:
Cash $ 20,969
Accounts receivable, net of allowance for doubtful accounts
of$48,977 in 2010 667,694
Parts and supplies 4,439
Prepaid expenses 6,716
Total current assets 699,818
Property and equipment:
Buildings and Improvements 9,873
Vehicles, containers, and operating equipment 1,418,000
1,427,873
Less accumulated depreciation (237,601)
Property and equipment, net 1,190,272
Other assets:
Franchises 3,200,000
Goodwill 1,190,549
Total assets $ 6,280,639
Liabilities and Stockholder's Investment
Current liabilities:
Accounts payable $ 47,169
Accrued liabilities:
Payroll and payroll taxes 57,898
Vacation and sick leave 24,543
Franchise fees 23,610
Other 2,121
Deposit on green carts 98,554
Deferred revenues 459,408
Total current liabilities 713,303
Commitments and contingencies
Stockholder's investment, net 5,567,336
Total liabilities and stockholder's Investment $ 6,280,639
See accompanying notes to financial statements and independent accountant's review report 1
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidlary of Recology Inc.)
Statement of Operations and Stockholder's Investment
October 15, 2009 (inception) through September 30, 2010
Revenues:
Refuse collection $ 3,738,233
Recycling and other revenue- 74,407
Total operating revenues 3,812,640
Expenses:
Refuse collection 2,863,197
Recycling 190,360
Truck and garage 384,340
General and administrative 793,859
Total operating expenses 4,231,756
Operating loss (419,116)
Finance charge income 3,595
Net loss (415,521)
Stockholder's investment, net, beginning of year -
Net contributions from.Parent and afflliates 5,982,857
Stockholder's investment, net, end of year $ 5,567,336
See accompanying notes to financial statements and Independent accountant's review report 2
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Statement of Cash Flows
October 15, 2009 (inception) through September 30, 2010
Cash flows from operating activities:
Net loss $ (415,521)
Adjustments to reconcile net loss to cash used in
operating activities:
Depreciation 240,655
Loss on sale of equipment 15,946
Provision for bad debts 25,993
Changes in assets and liabilities:
Accounts receivable (576,920)
Parts and supplies (4,439)
Prepaid expenses (6,716)
Accounts payable 16,855
Accrued liabilities 18,914
Deposit on green carts 7,157
Deferred revenues 384,408
Net cash used In operating activities (293,668)
Cash flows provided by investing activities:
Proceeds from Property & Equipment sold/abandoned 1,000
Cash flows provided by financing activities:
Net contribution from Parent and affiliates '245,364
Net change in cash (47,304)
Cash, at inception 68,273
Cash, end of year $ 20,969
Supplemental disclosure of noncash activities:
Additions to property and equipment funded by Parent from
acquisition of business - $ 1,447,873
Net other additions funded by Parent from
acquisition of business $ (100,929)
Additions to franchise and goodwill funded by Parent from
acquisition of business $ 4,390,549
See accompanying notes to financial statements and Independent accountant's review report 3
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Notes to Financial Statements
(1) ' Accounting Policies
(a) Organization
Recology Ashland Sanitary Service (the Company), is a wholly owned subsidiary
of Recology Oregon Inc., which is a wholly owned subsidiary of Recology Inc.
(the Parent, or Recology), which in turn is wholly owned by the Recology
Employee Stock Ownership Plan (the Recology ESOP or the ESOP).
(b) Revenue Recognition and Accounts Receivable
The Company recognizes revenue on an accrual basis when services are
performed. Deferred revenues primarily consist of revenues billed in advance that
are recorded as revenue in the period in which the related services are rendered.
The majority of the Company's revenue is subject to rate regulation by the
municipalities in which it operates.
The Company's receivables are recorded when billed and represent claims against
third parties that will be settled in cash. The carrying value of the Company's
receivables, net of the allowance for doubtful accounts, represents their
estimated net realizable value. The Company estimates Its allowance for doubtful
accounts based on several factors, Including historical collection trends, type of
customer, existing economic conditions and other factors.
(c) Parts and Supplies
Parts and supplies consist of equipment parts, materials, and supplies that are
recorded at average cost and are expensed when utilized.
(d) Property and Equipment
Property and equipment, including major renewals and betterments, are stated at
cost. It is the Company's polity to periodically review the estimated useful lives
of Its property and equipment. Depreciation of newly acquired assets Is calculated
on a straight-line basis over the estimated useful lives of assets as follows:
Estimated
useful lives
Buildings 20-40 years
Leasehold Improvements Shorter of lease
or useful life
Machinery and equipment 6-8 years
Furniture and fixtures 8 years
Vehicles 9 years
Containers 10 years
See accompanying Independent accountants review report 4
RECOLOGY ASHLAND SANITARY.SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Notes to Financial Statements
Depreciation expense on the above amounted to $240,655 for the period from
October 15, 2009 (inception) through September 30, 2010. The cost of
maintenance and repairs is charged to operations as incurred; significant
renewals and betterments are capitalized.
The Company capitalizes Interest costs for significant projects under
development. No interest was capitalized for the period from October 15, 2009
(Inception) through September 30, 2010.
(e) Environmental Remedlation Liabilities
The Company accrues for environmental remedlation costs when they become
probable and based on Its best estimate within a range. If no amount within the
range appears to be a better estimate than any other, the low end of such ranges
is used. Remediation costs are estimated by environmental remediation
professionals based upon site remediation plans they develop and on their
experience working with regulatory agencies and the Company's environmental
staff and .legal counsel. All estimates require assumptions about future events
due to a number of uncertainties, Including the nature and extent of any
contamination, the appropriate remedy or remedies, the final apportionment of
responsibility among the potentially responsible parties, if any are identified, the
financial viability of other potentially responsible parties, and regulatory agency
requirements. Actual costs incurred may differ from the Company's initial
estimate. These estimates do not take Into account discounts' for the present
value of total estimated future costs, as the timing of cash payments is not
reliably determinable. The Company regularly evaluates the recorded liabilities
when additional information becomes available or regulatory changes occur to
ascertain whether the accrued 'amounts are adequate. The Company does not
recognize recoverable amounts from other responsible parties or Insurance
carriers until receipt is deemed probable. Currently, there are no amounts
accrued for remediation costs.
(t) Business Combinations
The Company adopted Accounting Standards Codification (ASC) 805, Business
Combinations. The underlying principles require that we recognize, separately
from goodwill, the assets acquired and the liabilities assumed, generally at their
acquisition date fair values and that direct transaction costs associated with the
business combination are expensed as Incurred. While we use our best estimates
and assumptions.as a part of the purchase price allocation process to accurately
value assets acquired and liabilities assumed at the acquisition date, our '
estimates are Inherently uncertain and subject to refinement. As a result, during
the measurement period, which may be up to one year from the acquisition date,
we record adjustments to the assets acquired and liabilities assumed, with the
corresponding offset to'goodwill (to the extent that there Is goodwill). Upon the
conclusion of the measurement period or final determination of the values of
assets acquired or liabilities assumed, whichever comes first, any subsequent
See accompanying Independent accountant's review report 5
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Notes to Financial Statements
adjustments are recorded to our statement of operations. The measurement
period Is closed for the acquisition as of September 30, 2010.
(g) Impairment of Long-Lived Assets
The Company's policy Is to review estimated undiscounted future cash flows and
other measures of asset value for Its operations when events or changes in
circumstances Indicate the carrying value of . an asset may not be fully
recoverable.
For the period from October 15, 2009 (inception) through September 30, 2010,
there were no events or changes in circumstances that Indicated the carrying
value of an.asset was not fully recoverable.
(h) income Taxes
Effective October 1, 1998, the Parent elected to become an S corporation with
the.Company electing to be treated as a Qualified Subchapter S corporation
subsidiary, Under S corporation rules, the Parents taxable Income and losses are
passed through to the ESOP, the Parents sole shareholder, which is exempt from
income tax, and the Company is treated as a division of the Parent having no
separate Income tax obligations.
As of October 15, 2009, the Company recognized income tax positions only if
those positions are more likely than not of being sustained. Recognized Income
tax positions are measured at the largest amount that has a greater than 50%
likelihood of being realized. Changes in recognition or measurement are reflected
In the period in which the change In.judgment occurs. The Company's accounting
policy for evaluating uncertain tax positions is to accrue estimated benefits or
obligations relating to those positions. The Company records interest expense
and penalties as an administrative expense.
(1) Cash Concentration Account
The Company maintains a noninterest bearing checking account. Cash balances
(or deficits) are periodically transferred to (or from) the concentration account.
(j) Allocations
The Company includes allocated charges from the Parent and affiliates In
operating and other expenses. The charges are allocated by applying activity
appropriate factors to direct and indirect costs of the Parent and affiliates or
based upon established fees.
(k) Use of Estimates
Management of the Company has made a number of estimates and assumptions
relating to the reporting of assets and liabilities and the disclosure of contingent
assets and liabilities to prepare these financial statements in conformity with
See accompanying independent accountant's review report 6
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Notes to Financial Statements
accounting principles generally accepted In the United States of America. The
more significant estimates requiring the judgment of management include the
valuation of intangible assets and goodwill, valuation of the allowance for
accounts receivable, self-insurance reserves, and liabilities for environmental
remediation. Actual results could differ from those estimates.
(1) Stockholder's Investment
The Company has 1,000 shares of common stock authorized and 480 shares of
common stock issued and outstanding with no par value as of September 30,
2010. Stockholder's Investment, net is comprised of the legal capital plus
cumulative contributions net of distributions.
(m) Fair Value of Financial Instruments
The carrying amounts reported in the balance sheet of the assets and liabilities
which are considered to be financial Instruments (such as receivables)
approximate their fair value based upon current market indicators.
(2) Operations
The Company collects refuse and recyclabies in the City of Ashland,,the City of Talent
and unincorporated areas in Jackson County. The Company's refuse collection rates
are set by these municipalities. The rate setting process may result in the
disallowance of certain costs and/or delays in cost recovery as well as differences in
the timing of when revenues and expenses are recognized.
(3) Business Combinations
On October 15, 2009, the stock of the Company was acquired for $5.6 million by
Recology Oregon Inc. and changed Its name from Ashland Sanitary Services to
Recology Ashland Sanitary Service. The operations consist of a franchised collection
and recycling company serving Ashland, Talent and unincorporated Jackson County.
The assets acquired Include a franchise asset, goodwill, vehicles, containers, operation
equipment, and other assets. The franchise asset of $3,200,000 was valued based on
a discounted cash flow methodology and will not be subject to amortization. It will be
analyzed for impairment on an annual basis. The goodwill of approximately
$1,190,549 was valued based on the excess of the purchase price over the respective
fair value of the assets acquired and liabilities assumed. The vehicles, containers and
operation equipment of $1,438,000 were valued based on a third-party appraisal for
similar equipment. and other net liabilities of $285,969 were valued based on their
estimated fair values.
The results of operations from this acquisition are included in the Statement of
Operations and Stockholder's Investment from the acquisition date.
(4) Commitments and Contingencies
The Company, along with the Parent and the Parent's wholly owned subsidiaries has
See accompanying independent accountant's review report 7
RECOLOGY ASHLAND SANITARY SERVICE.. .
(A Wholly Owned Subsidiary of Recology Inc.)
Notes to Financial Statements
guaranteed the repayment, on a joint and several basis, of any and all obligations
under the Parent's Revolving Credit Agreement. The Company could be required to
honor the guarantee upon an Incurred default event, as defined in the Parent's
Revolving Credit Agreement. The Parent's Revolving Credit Agreement expires on April
14, 2014. At September 30, 2010, the outstanding principal on the Parent's Revolving
Credit Agreement was $37.0 million and there were standby letters of credit Issued for
$157.8 million. The Parent believes it is in compliance with all covenants of the
Revolving Credit Agreement.
The Parent and Its subsidiaries, including the Company, are subject to various laws
and regulations relating to the protection of the environment. It is not possible to
quantify with certainty the potential impact of actions regarding environmental
matters, particularly any future remedlatlon, and other compliance efforts. The Parent
has environmental impairment liability Insurance, which covers the sudden or gradual
onset of environmental damage to third parties, on all owned and operated facilities.
In the opinion of management, compliance with present environmental protection laws
will not have a material adverse effect on the results of operations of the Company
provided costs are substantially covered in the Company's rates on a timely basis.
The Company and the Parent are involved In various legal actions arising In the normal
course of business. It is the Company's opinion that these matters are adequately
provided for or that the resolution of such matters will not have a material adverse
Impact on the financial position or results of operations of the Company or the Parent.
(5) Equipment and Property Obligations
The Company has cancelable agreements with an affiliate whereby it pays for use of
certain operating equipment. In addition, the Company leases its operating facility
from an unrelated party for a minimum annual rental of$54,384. Future payments for
continued use of the equipment and property, by year-end and in aggregate, as of
September 30,2010 are as follows:
Year ending September 30:
2011 $ 77,812
2012 77,812
2013 77,812
2014 74,926
2015 46,468
Thereafter —
Total payments $ 354,830
Rental expense for the period from October 15, 2009 (Inception) through September
30, 2010 was $58,628 including amounts under short-term rental agreements with
third parties and affiliates.
See accompanying independent accountant's review report 8
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Notes to Financial Statements
Under the terms of the equipment lease agreement with an affiliate, and in accordance
with existing rate policies, the Company may continue to use certain equipment under
operating leases without a related payment once the equipment cost and related
interest havebeen funded,
(6) Transactions with Related Parties
During the period from October 15, 2009 (inception) through September 30, 2010,
operating and other expenses of the Company included allocated charges from the
Parent and affiliates. Such charges are based upon the direct and indirect costs of the
Parent and affiliates, or established fees, and allocated based on specific activities. The
allocated charges are as follows:
Transactions with Related Parties 2010
Parent:
Health Insurance $ 356,299
Workers' compensation 55,136
401(k) employer portion 18,161
General and vehicle insurance 34,079
463,675
Affiliates:
Rental of equipment 25,746
Disposal costs 1,050,916
Regional management and accounting fees 207,429
1,284,091
Total $ 1,747,766
During the period from October 15, 2009 (inception) through September 30, 2010,
amounts due from or payable to 'Parent and affiliates were accumulated by the
Company during the year, and at year-end, the net amount is settled by way of capital
contributions or distributions. Changes in amounts due from or payable to Parent or
affiliates are presented as a financing activity in the statement of cash flows, except as
related to expenditures attributable to property and equipment.
See accompanying independent accountant's review report 9
RECOLOGY ASHLAND SANITARY SERVICE
(A Wholly Owned Subsidiary of Recology Inc.)
Notes to Financial Statements
(7) Subsequent Events
The Company has evaluated Its subsequent events through May i6, 2011, which is the
date the financial statements were available for issuance. As a result of this
evaluation, we are not aware of any material modifications that should be made to
these financial statements for them to be In conformity with generally accepted
accounting principles.
See accompanying Independent accountants review report 10
Recology.
WASTE ZERO
I
September 30,2011
Lee Tuneburg
Finance Director
20 East Main Street
Ashland,Oregon 97520
Dear Mr.Tuneburg,
Below are responses to the issues in your August 29, 2011 memo to Martha Bennett:
1. The increase is to be effective October 1 and going forward based upon projected costs with
significant estimates, new costs and escalation factors that contribute to the large increase. No
revenue growth is anticipated due to a flat economy but a 3%inflation factor(CPI) is used on
many projected costs.
The effective date of October 1 was used to coincide with the beginning of our fiscal year that
runs from October 1 through September 30. Since the acquisition of Ashland Sanitary Service,
Recology has been experiencing a decline in business,while costs for fuel,parts,and service
needed for our operation have been climbing. We held projected revenues flat assuming we
will be able to retain the business at current levels in spite of the significance of the rate
increase. For most line items of expense, we used a CPI inflation factor of 3%to estimate our
2012 expenses. We have made adjustments for expense Items where we anticipate a
significant increase or decrease in cost compared to normal CPI trends.
2. The financing rate used on leased equipment is 5.3%,paid to the Recology leasing department
and seems out of line.
The lease rote is set for each piece of equipment by the leasing department. 5.3%was the
average rate used for the equipment that was in place as of April 2011. For the 2012 budget,
corporate was anticipating a rate of 6%would be charged for leases. More recently our bank
interest rote declined and Corporate now anticipates using a rate of 5%for 2012. We
discussed your question with our corporate controller. He Indicated that our bank borrowing
rate fluctuates with the LIBOR rotes and tends to be 1.25%to 2%above the prime interest rate
which is currently 3.25%. As a compromise, we have adjusted the lease schedule to reflect a
lease rate of prime plus 1.5%as of the date of acquisition which lowered the lease projection
for 2012 by$965• Carrying this adjustment through to the rate application did not lower the
rate increase percentage needed. The revised lease schedule is attached along with an Excel
file which shows the calculations.
1 Town Square Place • Vacaville, California 95688 • Phone 707-448-2945
3. Lease vehicle charges in lieu of depreciation makes sense however we have little basis to
question the billing rate for appropriateness. One approach would be to use the federal
equipment rental rates(without driver since wages and benefits are already included)but that
will take some time to ensure comparability.
The federal equipment rental rotes are primarily used for construction work. Typically,
construction equipment is utilized part time versus full time 8 hours per day 5 days per week
for our trucks. In addition,most of the trucks we run are specific to our industry and may not
be found on a federal equipment schedule. It is doubtful that a federal equipment rate would
provide comparable data.
4. The calculation of the Rate expense(billing costs)for equipment raises a question. We need
them to "show"the math. For example: item 14215,03 LODAL 30 YD SPLIT EVO S/L cost
$42,959.46(used)and was put in service 9/1/10 with an end date of 8/31/2015. Sixty months at
$830.39 is$49,823.40. Only$830.39 was expensed for FY 2010. It is now expensed in the
schedule at$9,964.68,per year for fiscal years 2011, 2012,2013, 2014 for a total of$39,858.72.
One would think there are 11 more months at$830.39 for FY2015 equaling$9,134.29. The sum
of$830.39 plus$39,858.72 plus$9,134.29 is$49,823.4 or$6,863.94 over the acquisition price.
Your analysis is correct the total lease expense would be$49,823.40 for 60 months. The
additional$6,863.94 represents the interest factor which for this asset is approximately 6%.
5. The cost for Admin Services, paid to Recology Corporate offices(think central service fees),
increased $191,769 of over 61%in one year. The report says that the first year cost was
absorbed by corporate. The costs are not detailed for analysis of what is being charged and for
appropriateness.
Detail was provided in our meeting on September 22 which listed all the expenses included in
general and administrative. We also provided detail concerning the corporate allocations. A
copy of this detail is included with this response as well. Most of the expenses listed in general
and administrative are expenses directly incurred by the division. Corporate services are an
allocation from corporate for the services it provides to the division. Below is the list of
corporate allocations including a description of the services that are provided and the
methodology used to allocate costs:
Corporate Administration
The Corporate Administration Department includes payroll and related costs for corporate
executives and administrative support. It also includes costs for Board of Directors and
outside counsel. Its functions include general management and corporate governance. Costs
are allocated based on adjusted revenue for each subsidiary as a percentage of total allocable
revenue.
2
Environment and Planning
The Environment and Planning Department includes payroll and related cost for corporate
compliance staff,professional services related to program development and review and
support for compliance systems. The department supports local operations staff with respect
to regulatory compliance(storm water control, e-waste, etc)and provides training and
oversight for environmental issues. Costs are allocated based on adjusted revenue for each
subsidiary as a percentage of total allocable revenue.
Sustainabilitv
The Sustainability Department includes payroll and related cost for executive and support
staff. The department supports sustainability activities seeking the best technology to
promote reusing materials at a level that is their best and highest use and to achieve the
highest carbon footprint reduction. Costs are allocated based on adjusted revenue for each
subsidiary as a percentage of total allocable revenue.
Finance
The Finance Department includes payroll and related costs for the corporate accounting and
finance department. Functions include treasury management accounting,rate setting
oversight,internal audit and accounting policy development and system support. Costs are
allocated based on adjusted revenue for each subsidiary as a percentage of total allocable
revenue.
Human Resources
The Human Resources Department includes payroll and related costs for corporate human
resource personnel and professional service support for benefit plan administration. Functions
include union contract negotiation support, development and compliance monitoring of
human resource policies and procedures,salary administration and general human resource
functions. Costs are allocated based on headcount for each subsidiary as a percentage of total
allocable headcount.
Information Technoloay
The Information Technology Department includes payroll and related costs for computer
programmers,operators, trainers and support staff. It also includes contract programmers
and outside consultants,equipment costs and software license fees. The department
maintains all computer and telephone systems and provides software maintenance and
development and integration of third party software. Costs are allocated based on a set of
weighted measures intended to approximate usage,including the relative number of payroll
and accounts payable checks(25%each)for each subsidiary,along with the number of
accounts receivable customers(50%)for each subsidiary.
3
6. The same hold true for Recology going"self insured"and the cost tripling.
The Company is insured for a variety of risks through a comprehensive insurance program
developed for all Recology companies. The insurance program Is designed to cover typical
business risks,including auto liability,property damage,pollution remediation and other risks.
Insurance costs are allocated to program participants based on a combination of direct cost
application and allocation of pooled costs. The allocations are designed and intended to allow
for companies to enjoy the benefits of favorable claims experience while mitigating the risk of
large losses by spreading risks through premium cost allocation.
For 2010 the corporate office absorbed part of the allocation of insurance expenses. For 2011
and 2012 expenses are set based on the full allocation of costs. The allocations are done with
a series of measures intended to approximate the risk of each entity,including revenues,
payroll, vehicles,insured value of property(to represent exposure)as well as claims(to
represent loss experience). Each type of insurance coverage is allocated on a mix of measures
that best reflects the type of risk covered(i.e.insured property values are used to allocate
property insurance premiums).
In addition to the above issues,you mention in your memo and we discussed in the meeting the
Operating Ratio(OR) used to determine the rate increase percentage requested. This method is
designed to produce a specific margin on operating expenses with no margin applied to pass-through
expenses. In our rate application,we used a 90%OR which is common in the industry. We have done a
little research and found that Rogue Disposal has six franchise agreements all using a 90%operating
ratio. Our contract with Jackson County also uses a 90%operating ratio. In addition,there are three
Northern California jurisdictions in our group that use a 90%operating ratio.
As we mentioned in the meeting,due to the difference in expense categories and accounting methods,
it is difficult to make direct comparisons of cost between the old Ashland Sanitary expenses and
Recology expenses. We understand that this could provide more support for our rate case. During the
next couple of weeks,we are working to provide expense comparison information for the major lines of
expense. We will also address Ann's request to model a different increase between residential and
commercial customers and to spread the increase over three years.
If you have any questions,you can contact me by phone at(707)445-1018 or e-mail at
tno rri 5(a)reco logy.com.
Sincerely,
Tom Norris
Regional Financial Manager
Cc: Martha Bennett
Ann Seltzer
Steve DiFabion
Bruce Gondry
4
Ed Farewell
5
ORDINANCE NO.
AN ORDINANCE GRANTING A FRANCHISE FOR THE COLLECTION OF SOLID WASTE, REFUSE
AND MEDICAL WASTE WITHIN THE CITY OF ASHLAND, JACKSON COUNTY, OREGON TO
ASHLAND SANITARY SERVICE, INC. FOR THE PERIOD FROM APRIL 1, 1990, TO MARCH
31, 2005; REGULATING THE DISPOSITION OF SOLID WASTE IN SAID CITY; PROVIDING
A PENALTY FOR THE VIOLATION HEREOF; REPEALING ORDINANCE NO. 2069 AND ANY
AMENDMENTS THERETO; AND DECLARING AN EMERGENCY.
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. That there is hereby granted to Ashland Sanitary Service, Inc.
the exclusive right, franchise and privilege of collecting, gathering and
hauling over the streets of the City of Ashland, Jackson County, Oregon,
all solid waste, refuse and medical waste accumulating in said City, with
the right to exact charges and collect from persons, firms or corporations
served as specifically hereinafter set forth, for the period from April 1,
1990, to March 31, 2005.
SECTION 2. That the term "solid waste" as used herein shall be construed
to mean every refuse accumulation of animal, fruit or vegetable matter,
liquid or otherwise, ashes, tin cans, bottles, glass, medical waste, and
discarded articles of similar matter.
SECTION 3. That it is hereby made the duty of every person, firm or
corporation within the limits of the City of Ashland to cause their solid
waste accumulation to be removed through the year within the times
specified as follows:
(1) Residences and apartments - once every seven (7) days.
(2) Hotels, restaurants, boarding houses, meat markets, grocery stores
and other places where meats, fruits and vegetables are kept, sold
or offered for sale, or where cooking is done for the public -
twice every seven (7) days.
(3) Medical facilities - within seventy-two (72) hours of disposal.
(4) All other places - once every seven (7) days.
SECTION 4. That every person, firm or corporation having garbage or
radical waste for disposition, shall place all such matter in containers
which shall be water-tight and fly-proof, and be placed in a location
convenient for the collectors.
SECTION 5. That it shall be unlawful for. any other person, firm or
corporation, excepting citizens hauling their own solid waste, and
excepting the City of Ashland when the same is functioning in a
governmental capacity hauling its own solid waste or refuse, to collect,
gather and/or haul solid waste or refuse over the streets of the City of
Ashland, Jackson County, Oregon, during the term of this franchise.
SECTION 6. That all vehicles used by the said Ashland Sanitary Service,
Inc. in the transportation of solid waste through the streets of the City
of Ashland shall be so constructed and equipped so as to be water-tight and
fly-proof, and which comply with all state laws and rules, regulations and
requirements of the State of Oregon.
SECTION 7. Any person, firm or corporation, whether as principal agent,
employee or otherwise, violating or causing the violation of any of the
provisions of this Ordinance, shall have committed an infraction, and upon
conviction thereof is punishable as prescribed in section 1.08.020 of the
Ashland Municipal Code. Such a person, firm or corporation is guilty of a
separate violation for each and every day during any portion of which any
violation of this Ordinance is committed or continued by such person, firm
or corporation.
SECTION 8. The fees to be charged and collected, both as to residential
and commercial customers, shall be in the amounts as hereafter approved by
resolution of the City Council and which have been requested by Ashland
Sanitary Service, Inc.
SECTION 9. Ashland Sanitary Service, Inc. shall have the right each year
to present to the City Council a petition for an increase in rates based .
upon an increase in the cost of rendering solid waste disposal services to
the citizens of the City of Ashland. The' same right shall exist where the
regulations are changed concerning the operation of the landfill so as to
cause an increase in capital outlay or operational expense of Ashland
Sanitary Service, Inc. , and this petition may be made at any time. In the
event the parties cannot agree on the amount of a rate increase, if any,
the matter shall be submitted to a board of arbitrators, one being selected
by each party and a third by the first two arbitrators. The decision of
the majority of the board shall be final and binding on the parties. The
arbitrators shall be experienced people familiar with standard business
practices. The third arbitrator shall be a Certified Public Accountant
certified to audit municipal accounts. The arbitrators shall not be
residents of the area served by Ashland Sanitary Service, Inc. In the
event costs should decrease, the City Council shall have the same right to
request a decrease in rates under the foregoing procedure.
SECTION 10. In consideration for the granting. of this exclusive franchise,
franchise holders shall pay to the City of Ashland for and as a franchise
fee, the sum of five percent (5%) of the franchise holder's gross receipts
from revenues received for the services rendered to customers situated
within the corporate limits of the City of Ashland.
Said payments shall be made monthly, no later than the 20th day of the
month following the month of service upon which the charge is predicated.
Said payment shall be accompanied by a statement, subscribed to by an
authorized representative of franchise holder, certifying the gross
revenue.
The City of Ashland reserves the right to perform such audits as it may
from time to time desire for the sole purpose of ascertaining the accuracy
and propriety of revenue representations. Said audits shall be done at
reasonable times, and at the cost of the City of Ashland.
SECTION 11. Ashland Sanitary Service, Inc. shall indemnify, defend and
hold harmless the City of Ashland, its officials and employees, from any
claim arising from the performance of the service provided under the terms
of this franchise; and further, shall maintain comprehensive general
liability insurance in amounts not less than the statutory limits of tort
liability of Oregon Municipalities as set forth in ORS 30.270, and shall
provide certificates of said insurance to the City Finance Director.
SECTION 12 . The City reserves the right to grant franchises for collecting
goods for recycling to other individuals, firms or corporations. If the
City Council determines that it wishes to grant a franchise for such
service, it shall first submit any proposal to Ashland Sanitary Service,
Inc. which shall have the first right of refusal of said franchise.
SECTION 13. That in the event the said Ashland Sanitary Service, Inc.
shall violate any of the agreements by it to be performed hereunder, then
and in that event the City Council, upon giving the franchise holder and
surety company thirty (30) days written notice of an alleged violation, in
order that said franchise holder or surety may have an opportunity to
explain or refute the same, may terminate this franchise and all rights of
the franchise holders shall cease and its bond in the sum of Twenty-five
Thousand Dollars ($25,000. 00) shall be forfeited. The franchise holder is
required to provide to the City of Ashland a bond in the sum of $25, 000. 00
securing its faithful performance of this franchise renewable annually, and
a certificate of continuance filed with the City.
SECTION 14 . That Ordinance No. 2069 as amended and all other ordinances in
conflict herewith are hereby repealed.
SECTION 15. The franchise holder agrees that its rights hereunder may not
be assigned, sold, pledged or given in any manner to a third party, nor may
any stock of the franchise holder corporation be sold, pledged or assigned
in any manner without the consent of the City of Ashland first having been
received, which consent shall not be unreasonably withheld. In the event
there is a dispute as to any sale or transfer under this provision, then
the matter shall be settled in the manner as provided for arbitration in
Section 9 hereof.
SECTION 16. That inasmuch as the current franchise ordinance expired on
April 1, 1990, the public interest requires that an emergency be declared,
and this ordinance shall be effective upon its second reading and approval
by the Mayor.
The foregoing Ordinance was first read at a regular meeting of the City
L/-
Council on the 1i day of June, 1990, and DULY PASSED and ADOPTED this
day of ,��.c c'_ 1990.
Nan E. Franklin
City Recorder
SIGNED and APPROVED this day of 1990.
C
Catherine M. Golden
Mayor
ORDINANCE NO. goy
AN ORDINANCE AMENDING SECTION ONE OF
ORDINANCE 2582 TO EXTEND THE FRANCHISE TERM
FOR ASHLAND SANITARY SERVICE TO THE YEAR
2018.
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. Section one of ordinance 2582 adopted on June 19, 1990, is amended to
read:
That there is hereby granted to Ashland Sanitary Service, Inc., the
exclusive right, franchise, and privilege of collecting, gathering, and
hauling over the streets of the City of Ashland, Jackson County, Oregon,
all solid waste, refuse, and medical waste accumulating in said city, with
the right to exact charges and collect from persons, firms, or corporations
served as specifically hereinafter set forth, for the period from April 1,
1990, to March 31, 2018.
The foregoing ordinance was first read by title only in accordance with Article X,
Section 2(C) of the City Charter on the /$C-4 day of A'vq v5 f 1998,
s r
and duly PASSED and ADOPTED this day of 1998.
.,C �. Se w
Derek D. Severson,
Acting City Recorder
SIGNED and APPROVED this day of SAP b�✓ 1998.
�Cr.uy`---��oes'/�✓
Catherine M. Shaw, Mayor
Re 'ewed as to form:
Paul Nolte, City Attorney
Page 1 -SANITARY FRANCHISE ORDINANCE GOAUUOROwshland Sanitary Franchise orawpd
RECYCLING CENTER LEASE
Date: January 1, 1996
Lessor: City of Ashland, 20 East Main Street, Ashland, Oregon ("City")
Lessee: Ashland Sanitary Service, Inc. ("Lessee")
Recitals:
A. Lessee has been granted a franchise by City for the collection of solid waste. As a
part of its franchise, Lessee also operates recycling programs for city residents.
B. Lessee is currently using the premises owned by City and described'below for a
recycling center.The use by Lessee has never been formalized between Lessee and
City and the parties intend by this lease to formalize their agreement for use of the
premises.
City and Lessee agree as follows:
1. Description of Premises. City teases to Lessee, and Lessee leases from City, the
real property (the "premises") described on Exhibit A attached and Incorporated In this
lease by this reference.
2.Term. The premises are leased for a term (the "term") commencing on the date of
this lease and expiring at such time as the Lessee is no longer the franchisee for solid
waste collection in the City or upon termination as provided section 17. .
3. Recycling Center.
3.1. Lessee has previously constructed or,placed buildings (the "buildings") and
related improvements on, under, and over the premises. The buildings and all the
related Improvements are referred to In this lease as the "Recycling Center." The
Recycling Center and any future alterations, additions, replacements, or modifications
to the Recycling Center during the term of this lease are referred to in this lease as the
"improvements."
3.2. Lessee shall construct any additional improvements to the Recycling Center
in accordance with the final plans and.specifications approved by,Cfty,-which approval
shall not be unreasonably Veithheld'or delayed.
4. Rent. No, rent shall be payable with respect to the premises,
S. Use.
5.1. Lessee shall use and occupy the premises continuously during the term for
the operation of a recycling center to collect material for recycling or reuse authorized
PAGE 1-RECYCLING CENTER LEASE
under City's or Lessee's recycling programs. The premises may not be used for any
other purpose without the written consent of Lessee, which consent shall not be
unreasonably withheld. Lessee shall open Its business to the public during the
following days and hours: 9:00 a.m. to 5:00 p.m., Wednesday through Sunday or at
such other days and hours as the parties may agree. Lessee's business may be
dosed on holidays. City shall have the right to approve any signs or displays Lessee
may desire to erect on or about the premises that are visible from the exterior of the
buildings, in order to ensure that City may control the quality and character of the
presentation displayed by Lessee. Such approval may be withhold or revoked If City
in good faith believes such display or plan is unsatisfactory or Inappropriate for the
development.
5.2. Lessee shall not use or occupy, or permit or suffer all or any part of the
premises or the improvements to be used or occupied (1) for any unlawful or illegal
business, use, or purpose, (2) in any such manner to constitute a nuisance of any
kind, or (3) for any purpose or in any way in violation of the certificate of occupancy,
or of any legal requirements, including but not limited to legal requirements respecting
hazardous substances. The term hazardous substance means any hazardous, toxic,
or dangerous substance, waste, or material that is the subject of environmental
protection legal requirements, including but not limited to the items listed in the United
States Department of Transportation Hazardous Materials Table (49 CFR §172.101) or
designated as hazardous substances by the United States Environmental Protection
Agency (40 CFR pt 302). Lessee acknowledges that the term legal requirements
includes but is not limited to all environmental protection laws such as the
Comprehensive Environmental Response, Compensation and Liability Act (42 USC
§6901 at seq.), the Federal Water Pollution Control Act (33 USC §6901 at seq.), the
Federal Water Pollution Control Act (33.USC §1257 at seq.), and the Clean Air Act (42
USC §2001 at seq.).
5.3. Lessee shall observe and comply'wfth all Conditions and requirements %
necessary to preserve and extend any and all rigjits, licenses, permits (Including but
not limited to zoning variances, special exceptions, and nonconforming uses),
privileges, franchises, and concessions that now apply to the premises or that have
been granted to or contracted for by City or Lessee in connection with any existing or
presently contemplated use of the premises or the improvements.
5.4. Lessee shall permit City use of the premises for the purposes of
conducting educational classes for citizens regarding city's recycling programs. City's
use of the property for this purpose will be at such times and dates as mutually
agreed by the parties.
5.5. Nothing contained in this lease shall be construed as providing for the
creation of a public way, city street or public forum on the premises. For such
purposes the parties agree the premises are to be regarded as a private place and
Lessee is under no obligation to allow use of the premises for the circulation of
initiative petitions or for any other purpose except as expressly provided for in this
lease.
PAGE 2-RECYCLING CENTER LEASE io:...n....tw
6. Liens
6.1. Lessee shall have no power to do any act or to make any contract that
may create or be the foundation for any lien, mortgage, or other encumbrance on the
reversion or other estate of City or on any interest of City in the premises.
6.2. Lessee shall not suffer or permit any liens to attach to the interest of
Lessee in all or any part the premises by reason of any work, labor, services, or
materials done for, or supplied to, or claimed to have been done for or supplied to,
Lessee or anyone occupying or holding an Interest in all or any part of the
Improvements on the premises through or under Lessee. If any such lien shell at any
time be filed against the premises, Lessee shall cause the same to be discharged of
record within 30 days after the date of filing the same, by either payment, deposit, or
bond.
6.3. Nothing in this lease shall be deemed to be,,or be construed in any way as
constituting, the consent or request of City, express or implied, by Inference or
otherwise, to any person, firm, or corporation for the performance of any labor or the
furnishing of any materials for any construction, rebuilding, afterstion, or repair of or to
the premises or to the improvements, or as giving Lessee any right, power, or
authority to contract for or permit the rendering of any services or the furnishing of any
materials that might in any way give rise to the right to file any lien.against City's
interest in the premises or against City's interest, if any, in the improvements. Lessee
Is not intended to be an agent of City for the construction of improvements on the
premises. City shall have the right to post and keep posted at all reasonable times on
the premises and on the Improvements any notices that City shall be required to post
for the protection of City and of the premises and of the Improvements from any such
lien. The foregoing shall not be construed to diminish or vitiate any rights of Lessee in
this lease to construct, after, or add to the improvements.
7. Taxes; Utilities.
7.1. Property Taxes. Lessee shall pay as due all taxes on its personal
property located on the premises. City shall pay as due any real property taxes and
special assessments levied against the premises.
7.2. Payment of Utilities Charges. Tenant shall pay when due all charges for
services and utilities incurred In connection with the use, occupancy, operation, and
maintenance of the premises, including (but not limited to) charges for fuel, water, gas,
electricity, sewage disposal, power, refrigeration, air conditioning and telephone.
S. Insurance.
8.1. Lessee shall, at its own expense, at all times during the term of this lease,
maintain in force a comprehensive general liability policy including coverage for
contractual liability for obligations assumed under this agreement, blanket contractual
liability, products and completed operations, owner's and contractor's protective
PAGE 3-RECYCLING CENTER LEASE
insurance and comprehensive automobile liability including owned and non-owned
automobiles. The liability under each policy shall be a minimum of$500,000 per
occurrence (combined single limit for bodily injury and property damage claims) or
$500;000 per occurrence for bodily injury and $100,000 per occurrence for property
damage. Liability coverage shall be provided on an "occurrence" not "claims" basis.
The City of Ashland, its officers, employees and agents shall be named as additional.
insureds. Certificates of insurance acceptable to the City shall be filed with City's Risk
Manager prior to the commencement of any services by Contractor under this
agreement. These certificates shall contain provision that coverages afforded under
the policies can not be canceled and restrictive modifications cannot be made until at
least 30 days prior written notice has been given to City. A certificate which states
merely that the issuing company "will endeavor to mail" written notice is unacceptable.
8.2. Lessee may, but is not required to, keep the premises insured at Lessee's
expense against flood and other risks covered by a standard flood Insurance policy.
Lessee shall make available the proceeds of any such insurance first for the
restoration of the improvements on the premises. Neither party shall be liable to the
other (or to the other's successors or assigns) for any loss or damage caused by any
of the risks enumerated in a standard flood insurance policy with an extended
coverage endorsement, and in the event of insured loss, neither party's insurance
company shall have a subrogatod claim against the other. This waiver shall be valid
only if the insurance policy in question expressly permits waiver of subrogation or If
the insurance company agrees in writing that such a waiver will not affect coverage
under the policies. Each party agrees to use best efforts to obtain such an agreement
from its Insurer if the policy does not expressly permit a waiver of subrogation.
9. Compliance with Legal Requirements..
9.1. Throughout the term, Lessee shall promptly, comply with all legal
requirements that may apply to the premises"er to Lthq use or manner of uses of the
premises or the improvements or the owners or 4sers of the improvements, whether
or not the legal requirements affect the interior or exterior of the improvements,
necessitate structural changes or Improvements, or interfere with the use and
enjoyment of the premises or the improvements, and whether or not compliance with
the legal requirements Is required by reason of any condition, event, or circumstance
existing before or after the term commences. Lessee shall pay all costs of compliance
with legal requirements, but Lessee shall have the right to Lease occupation or use of,
or to demolish or remove, all or any part of the premises or the Improvements in lieu
of compliance with any legal requirement that may require expenditures on behalf of
Lessee for continued use or occupation of 1he premises.
9.2. Lessee shall have the right, after prior written notice to City, to contest by
appropriate legal proceedings, diligently conducted In good faith, in the name of
Lessee or City or both, without cost.or expense to City, the validity or application of
any legal requirement subject to the following:
PAGE 4-RECYCLING CENTER LEASE w:,..n....�..i
92.1. If, by the terms of any legal requirement, compliance may legally
be delayed pending the prosecution of any such proceeding without the incurrence of
any lien, charge, or liability of any kind against all or any part of the premises or the
improvements and without subjecting Lessee or City to any liability, civil or criminal, for
failure to comply, Lessee may delay compliance until the final determination of such
proceeding; or
9.2.2. If any lien, charge, or civil liability would be Incurred by reason of
any such delay, Lessee nevertheless may contest the matter and delay compliance,
provided that such delay would not subject City to criminal liability or fine, and Lessee
9.2.2.1. Furnishes to City security, reasonably satisfactory to City,
against any loss or injury by reason of such contest or delay, and .
9.2.2.2. Prosecutes the contest with due diligence.
9.3. City shall execute and deliver any appropriate papers that may be
necessary or proper,to permit Lessee to contest the validity or application of any legal
requirement, provided all the requirements of this section have been satisfied by
Lessee-and City will incur no cost.
10. Repairs and Maintenance.
10.1. Except as otherwise specifically provided in this lease, Lessee shall
maintain, repair, and replace the premises and the improvements as necessary to
keep them in good order, condition, and repair throughout the entire term. Lessee's
obligations shall extend to both structural and nonstructural Items and to all
maintenance, repair, and replacement work, including but not limited to unforeseen
and extraordinary items.
10.2. City shall maintain, repair, and replace the asphalt driveway and the
cyclone fence on the promises to keep such In good order, condition, and repair
throughout the entire term.
11. Alterations, Additions, and New Improvements. The term modifications means
any demolition, improvement, alteration, change, or addition, of, In, or to all or any part
of the premises or the Improvements. The term minor modifications shall mean any
modifications costing less than $5,000, and the term major modifications shall mean
any and all modifications other than minor modifications. Multiple modifications
occurring within a period of 365 days shall be deemed a single modification for the
purposes of'applying the provisions contained in this section. At any time during the
term and at Lessee's own cost and expense, Lessee may make or permit to be made
any minor modifications, provided there is no existing and unremedied default on the
part of Lessee, of which Lessee has received notice of default, under any of the terms,
covenants, and conditions of this lease. Major modifications shall require the prior
consent of the City. All salvage material in connection with any modification that
Lessee is permitted to make shall belong to Lessee.
PAGE 5-RECYCLING CENTER LEASE in:reaRm.i.a
l
12. Title to improvements. Title to improvements shall be and remain in Lessee until
the expiration of the term, unless this lease is terminated sooner as provided. Upon
such expiration or sooner termination, the parties shall mutually determine the
disposition of the improvements and the value to be paid by City If the Improvements
remain on the premises. During the term, Lessee shall be entitled for all taxation
purposes to claim cost recovery deductions and the like on the Improvements.
13. No Waste. Lessee shall not do or suffer any waste or damage, disfigurement, or
Injury to the premises or the improvements. Demolition of all or any part of the
improvements done in accordance with the requirements of section 11 shall not be
considered prohibited by the terms of this section.
14. Inspection and Access.
14.1. Lessee shall permit City or its authorized representative to enter the
premises and the improvements at all reasonable times during usual business hours
for the purposes of Inspecting the same and making any repairs or performing any
work that Lessee has neglected or refused to make in accordance with the terms,
covenants, and conditions of this lease. Nothing in this lease shall imply any duty or
obligation on the part of City to downy such work or to make any Improvements of
any kind whatsoever to the premises,(including, but not limited to, repairs and other
restoration work made necessary due to any fire, other casualty, or partial
condemnation, irrespective of the sufficiency or availability of any fire or other
insurance proceeds, or any award in condemnation;which may be payable). The
performance of any work by City shall not constitute a waiver of Lessee's default in
failing to perform the same.
14.2. During the progress of any work on the premises or the Improvements
performed by City pursuant to the provisions in this section, City may keep and store
on the premises all necessary materials, tooisesupplies, and equipment. City shall not j
be liable for inconvenience, annoyance, disturbance, loss of business, or other
damage of Lessee or any user by reason of making such repairs or performing any
such work, or on account of bringing materials, tools, supplies, and equipment onto
the premises or into the improvements during the course of the work and the
obligations of Lessee under this lease shall not be affected by the work.
14.3. City shall have the right to enter on the premises and the improvements at
all reasonable times during usual business hours for the purpose of showing the same
to prospective purchasers of City's interest and, at any time within two years before
the term expires, for the purpose of showing the same to prospective Lessees.
14.4. l=xcept in the event of emergency repairs, all entry to the premises by
City shall require at least 24 hours' advance notice to Lessee. In the event of any
emergency repairs, City shall use reasonable efforts to give Lessee the earliest
possible notice of the same.
PAGE 6-RECYCLING CENTER LEASE
15. City's Exculpation and Indemnity.
15.1. Lessee Is and shall be in exclusive control of the premises and of the
improvements, and City shall not in any event whatsoever be liable for any injury or
damage to any property or to any person happening on, In, or about the premises or
the improvements or any injury or damage to the premises or the improvements or to
any property, whether belonging to Lessee or to any other person, caused by any fire,
breakage, leakage, defect, or bad condition in any part or portion of the premises or'
of the improvements, or from steam, gas, electricity, water, rain, or snow that may leak
into, issue, or flow from any part of the premises or the improvements from the drains,
pipes, or plumbing work of the same, or from the street, subsurface, or any place or
quarter, or due to the use, misuse, or abuse of all or any of the improvements or from .
any kind of injury that may arise from any other cause whatsoever on the premises or
in or on the improvements, Including defects in construction of the improvements,
latent or otherwise.
15.2. Lessee agrees to defend, indemnify and save City, Its officers, employees
and agents harmless from any and all losses, claims, actions, costs, expenses,
judgments, subrogation, or other damages resulting from injury to any person
(including injury resulting in death;) or damage (including loss or destruction) to
property, of whatsoever nature arising out of or incident to the performance of this
agreement by Lessee (including but not limited to, Lessee's employees;agents, and
others designated by Lessee to perform work or services attendant to this agreement).
Lessee shall not be held responsible for damages caused by the negligence of City..
15.3. During those times City is using the premises as provided in section 5.4,
City shall defend, indemnify and'save Lessee, its officers, employees and agents
harmless from any and all losses, claims, actions, costs, expenses, judgments,
subrogations, or other damages resulting from injury to any person Qncluding injury
resulting in death,) or damage (including loss pr destruction) to property, of j
whatsoever nature arising but of or incident to City's use of the premises. City shall
not be held responsible.for damages caused by the negligence of Lessee, however.
16. Assignment and Subletting. Lessee shall not sell, assign, or in any other manner
transfer this lease or any Interest in this lease or the estate of lessee under this lease
without the prior consent of City, which consent shall not be unreasonably withheld or
delayed.
17. Default; Remedies.
17.1:The occurrence of any one or more of the following events of default
constitutes a•breach of this lease by Lessee:
17.1.1. If Lessee, whether by action or inaction, is in default of any of its
obligations under this lease and such default continues and is not remedied within 30
days after City has given Lessee a notice specifying the same, or, in the case of a
default that can be cured but not within a period of 30 days, if Lessee has not (1)
PAGE 7-RECYCLING CENTER LEASE
commenced curing such default within such 30-day period; (2) notified City of
Lessee's intention to cure the default; or (3) continuously and diligently completed the
cure of the default.
17.1.2. During any 12-month period, Lessee shall be entitled to only two
notices pursuant to section 17.1.1.
17.2. Upon the occurrence of an event of default, City may exercise any one
or more of the remedies set forth in this section or any other remedy available under
applicable law or contained in this lease:
17.2.1. City or City's agents and employees may immediately or at any
time thereafter reenter the premises either by summary eviction proceedings or by any
suitable action or proceeding at law, or by force or otherwise, without being liable to
indictment, prosecution, or damages, and may repossess the same, and may remove
any person from the premises, to the end that City may have, hold, and enjoy the
premises.
17.2.2. City may relet the whole or any part of the premises from time to
time, either In the name of City or otherwise, to such Lessees, for such terms ending
before, on, or after the expiration date of the lease term, at such rentals and on such
other conditions (Including concessions and free rent) as City may determine to be
appropriate. To the extent allowed under Oregon law, City shall have:no;obligation to
relet all or any part of the premises and shall not be liable for refusal to relet the
premises, or, in the event of such reletting, for refusal or failure to collect;any rent due
on such reletting; and any action of City shall not operate to relieve Lessee of any
liability under this lease or otherwise affect such liability. City at Its option may make
such physical changes to the premises as City, in Its sole discretion, considers
advisable and necessary in connection with any such reletting or proposed reletting,
without relieving Lessee of any liability undef this lease or otherwise affecting Lessee's i
liability.
17.3. Whether or not City retakes possession or relets the premises, City has
the right to recover its damages, Including without limitation all lost rentals, all legal
expenses, all costs incurred by City In restoring the premises or otherwise preparing
the premises for reletting, and all costs incurred by City In reletting the premises.
17.4. To the extent permitted under Oregon law, City may sue periodically for
damages as they accrue without barring a later action for further damages. City may
in one action recover accrued damages plus damages attributable to the remaining
lease term equal to the difference between the Rent reserved in this lease for the
balance of the lease term after the time of award, and the fair rental value of the
premises for the same period, discounted at the time of award at a reasonable rate
not to exceed 10% per annum. If City has relet the premises for the period that
otherwise would have constituted all or part of the unexpired portion of the term, the
amount of rent reserved on such reletting shall be deemed, prima facie, to be the fair
PAGE &RECYCLING CENTER LEASE �,,..n...a.�
and reasonable rental value for the part or the whole of the premises so relet during
the term of the reletting.
17.5. No failure by City to insist on the strict performance of any agreement,
term, covenant, or condition of this lease or to exercise any right or remedy
consequent upon a breach, and no acceptance of full or partial Rent during the
continuance of any such breach, constitutes a waiver of any such breach or of such
agreement, term, covenant,,or condition. No agreement, term, covenant, or condition
to be performed or complied with by Lessee, and no breach by Lessee, shall be
waived, altered, or modified except by a written instrument executed by City. No
waiver of any breach shall affect or after this lease, but each and every agreement,
term, covenant, and condition of this lease shall continue in full force and effect with
respect to any other then-existing or subsequent breach.
17.6. Each right and remedy provided for in this lease shall be cumulative and
shall be in addition to every other right or remedy provided for in this lease or now or
hereafter existing at law or in equity or by statute or otherwise, and the exercise or
beginning of the exercise by City or Lessee of any one or more of the rights or
remedies provided for in this lease or now or hereafter existing at law or in equity or
by statute or otherwise shall not preclude the simultaneous or later exercise by the
party in question of any or all other rights or remedies provided for in this lease or
now or hereafter existing at law or in equity or by statute or otherwise.
18. Surrender
18.1. Except as otherwise provided, Lessee, on the last day of the term, shall
surrender and deliver up the premises and all improvements to the possession and
use of City without fraud or delay, free and clear of all lettings and occupancies other
than subleases then terminable at the option of City or subleases to which City shall
have specifically consented, and free and clear of all liens and encumbrances other
than those,If any, presently existing or created or suffered by City, without any
payment or allowance whatever by City on account of any Improvements on the
premises.
18.2. when furnished by or at the expense of Lessee or any sublessee,
furniture, fixtures, and equipment may be removed by Lessee at or before this lease
terminates, provided, however, that the removal will not injure the premises or the
improvements or necessitate changes in or repairs to the same. Lessee shall pay or
cause to be paid to City the cost of repairing any damage arising from such removal
and restoration of the.premises and/or the improvements to their condition before
such removal.
18.3. Any personal property of Lessee or any sublessee that shall remain on
the premises after the termination of this lease and the removal of Lessee or such
sublessee from the premises may, at the option of City, be deemed to have been
abandoned by Lessee or such sublessee and may either be retalned'by City as its
property or be disposed of, without accountability, In such manner as City may see fit,
PAGE 9-RECYCLING CENTER LEASE �o: ••n....a.i
or If City gives written notice to Lessee to such effect; such property shall be removed
by Lessee at Lessee's sole cost and expense. If this lease terminates early for any
reason other than the default of Lessee then, anything to the contrary notwithstanding,
Lessee or any sublessee shall have a reasonable time thereafter to remove Its
personal property.
. 18.4. City shall not be responsible for any loss or damage occurring to any
property owned by Lessee or any sublessee, unless caused by City's negligence.
18.5. The provisions of this section shall survive any termination of this lease.
19. No Representations. Lessee acknowledges that it has examined the premises
and that no representations as to the condition of the premises have been made by
City or any agent or person acting for City (except as expressly provided in.this lease).
Before any construction commences on the premises, Lessee shall conduct tests of
the subsurface and soil conditions to ascertain the suitability of the premises for the
contemplated Recycling Center and shall furnish such fill and take such other steps as
may be required before the commencement of construction. City shall have no liability
because of, or as a result of, the existence of any subsurface or soil condition, either
on the premises or on adjacent land; that might affect Lessee's construction.
20. Costs and Attorney Fees. If either party brings an action to recover any sum due
or for any breach and obtains a judgment or decree In its favor; the court may award:
to such prevailing party its reasonable costs and reasonable attorney fees, specifically,,
including reasonable attorney fees incurred In connection with any appeals (whether or .
not taxable as such by law).
21. Entire Agreement. This lease contains the entire agreement between the parties
and, except as otherwise provided, can be changed, modified, amended, or
terminated only by an instrument in writing executed by the parties. It is mutually f
acknowledged and agreed by Lessee and City that there are no verbal agreements,
representations,,warranties, or other understandings affecting this lease.
Lessee
PAGE 10-RECYCUNG CENTER LEASE iP:...n...�..�