v Nay Abstain/Absent - Tillamook County, Oregon

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COUNTYCOtlRTJOURNAr JFILED h'i

THE BOARD OF COUNTY COMMISSIONERS ~~APR 3 0 201~ VQ}

TASSI O'NEIL
FOR THE COUNTY OF TILLAMOOK IN THE STATE OF OREGON COUNTY CLERK

SITTING AS THE BOARD OF THE SOLID WASTE SERVICE DISTRICT

In the Matter of Increasing Customer ) ORDER
Rates for Solid Waste Disposal for )
Solid Waste Collection Franchisee, ) #15-~
Walker WasteSolutions, dba City )
Sanitary Service ) SWSD #15 - 0 0 Lf

This matter coming on to be heard this 29th day of April, 2015 at a regular
meeting of the Board of Commissioners, sitting as the governing body of the Solid
Waste Service District (SWSD). A request for increasing rates charged by a collection
franchisee to their customers has been submitted by Walker Waste Solutions, dba City
Sanitary Service. The SWSD Board being fully apprized of the records and files herein
finds as follows.

1. The Tillamook County Solid Waste Advisory Committee recommended the
amount of the submitted rate increases be approved.

2. The Tillamook County Board of Commissioners finds that the proposed rates will
be just, fair, reasonable and sufficient to provide the proper service to the public.

NOW THEREFORE, IT IS HEREBY ORDERED that

3. City Sanitary Service rates as outlined on Exhibit "A" become effective June 1,
2015.

DATED THIS ;2..9 +J.. DAY OF Apr: I , 2015.

BOARD OF COUNTY COMMISSIONERS Aye Nay Abstain/Absent
FOR TILLAMOOK COUNTY, OREGON
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Tim Josi, Chair
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Bill Baertlein, Commissioner

ATTEST: Tassi O'Neil
County Clerk

By:~~~
Special Deputy

EXHIBIT A

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3/25/115

Dear Commissioners,

City Sanitary Service will not be requesting a rate increase for 2015. While we are disappointed
that the county has decided to increase dump fees to the haulers in the upcoming year we understand
rates at the landfill have increased. Under normal circumstances we would raise our rates in unison
with a dump fee increase because tip fees can make up almost 40% of our expenses. This year we have
started several new programs and added many customer conveniences including accepting credit cards,
online payments, and new paper/electronic bills. We have revamped and added several recycling
streams along with new signage and educational material. We were able to do all this and actually
decrease some of our related expenses. We DO NOT want our customers to think that these new
services resulted in their rates increasing. Therefore, we are putting off any rate increases except for
making the adjustment to the tip fee rate from $71.50 to $73.43 per ton.

2014 was a transition year for City Sanitary Service. We changed ownership on July 1'1 and
also changed and updated several areas of our business. We outsourced our monthly billing allowing
us more flexibility to make changes to how information is sent out. We also now accept credit card and
online payments along with providing customers with paperless billing and auto bill pay as an option.
City Sanitary also partnered with Bennett Family Farm to encourage people to purchase farm fresh
milk in reusable glass containers. The biggest and most informative project of the year was an
extensive recycler survey we conducted in September. This gave us valuable information about what
the public wanted to see for recycling opportunities at City Sanitary and led us towards several major
changes. One of the areas of change was in how and what we recycle. We now accept film plastic, tub
plastic, and mix newspaper, magazines, and junk mail all together in one container. We also closed
down the recycle shed behind Les Schwab. This has allowed us to keep our recycling much cleaner
and streamlined the process for recyclers so they can bring everything to one location. Overall, it was a
great year and we expect more business and more positive changes in 2015.

Thank you,

Robert Poppe

Co-owner
Walker Waste Solutions LLC
PO Box486
Tillamook, OR 97141
503-842-6262
cjtvsanitar:yservicel!llarnook1il)grnail com
citysanitaryservice. com

Attached: 2014 Hauler Rate Review & example letter to customers about rate change.

City Sanitary Service Tillamook County Franchise Hauler Rate Review Report Tillamook County franchise

Walker Waste Solutions (7/1/14 to 12/31/14} edited January 2015
Total

2015 projected 2015 projected w/ 2015 projected 2015 projected

REVENUE 2014 actual w/o rate change rate change %change Allocation method 2014 actual w/o rate change w/ rate change %change
Collection Services
Rental revenue 831,987 I I r~~~ ~""1,700,000 1,700,000
Non-franchised revenue & pass-through revenue 26,477 54,000 54,000
Recycling revenues 240,000
Other revenue (MED WASTE) 118,908 240,000 104% 423,215 860,000 860,000 103%
Total revenue 104%
102% 47% of revenue 12,444 25,380 25,380 104%
Number of regular customers as of January 1, 2014*
Number of regular customers as of July 1, 2014* 55,887 112,800 112,800 102%
Number of regular customers as of January 1, 2015*
7,154 15,000 15,000 110% Actual - - - #DIV/0!

2,490 5,000 5,000 101% 47% of revenue 1,170 2,350 2,350 101%

987,015 2,014,000 2,014,000 104% 492,716 1,000,530 1,000,530 103%

2680 1386

2675 1411

2676 1402

*Regular customers are usually cans, carts, dumpsters, compactors, based on service listings.

EXPENSES
Operational expenses

Disposal expense (franchised) 3997.47 tons 286,292 620,000 620,000 117% 40% of Truck Weight 114,517 248,000 248,000 117%
Disposal expense (other) clean fill/med waste 6,121 12,000 '12,000 96%54% Cust. Count 3,305 6,480 6,480 96%
Recycling collection expense
Recycling processing expense 118,595 1,000 1,000 #DIV/0! 1 driver city - - #DIV/0!
Labor-related expenses 34,283 #DIV/0! 65,227 #DIV/0!
Labor expense 17,787 290,000 290,000 18,856 159,500
Taxes, insurance 90,000 90,000 55% labor hrs 49,500 159,500 145%
Other labor-related expense (SEP) 38,408 36,000 36,000 145%55% labor hrs 9,783 19,800 49,500 163%
Operations-related expenses 4,589 163%55% labor hrs - 19,800 102%
Fuel 80,000 80,000 102% 55% labor hrs - 44,000
Repairs and Maintenance 86,899 20,000 20,000 11,000 44,000 108%
Depreciation and Amortization 36,000 173,800 173,800 55% labor hrs 21,125 95,590 11,000 336%
Op. Lease and/or Rent (property & trucks) 46,134 72,000 72,000 108% 55% labor hrs 2,524 39,600 95,590 100%
Equipment expense 76,467 90,000 90,000 336% 55% labor hrs 49,500 39,600 100%
Insurance expense 160,000 160,000 100% 55% labor hrs 47,794 88,000 49,500
Other operational expense (incl. franchise fees) 9,546 20,000 20,000 100% 55% labor hrs 19,800 1,050 88,000 95%
Total operational expenses 761,121 1,664,800 1,664,800 25,374 109%
Number of collection trucks as of January 1, 2014 95% 55% labor hrs 42,057 812,020 1,050
Number of collection trucks as of January 1, 2015 14 96,000 109% 55% labor hrs 812,020 0%
Administrative expense 14 10,000 110%Actual 1,050 119%
Management services 40,000 119% 371,411
Administrative services 49,000
Postage, phones, office supplies, utilities, etc. 6,651 4,000 96,000 96%54% Cust. Count 14 51,840 51,840 96%
Advertising and outreach expenses 5,000 10,000 50%54% Gust. Count 14 5,400 5,400 50%
Education, Training, Publications, dues 16,081 6,000 40,000 149%54% Gust. Count 149%
Bad debts (refund for prepaid services) 1,826 12,000 119%54% Gust. Count 26,460 21,600 21,600 119%
Other admin. Expenses 2,199 173,000 4,000 127%54% Gust. Count 3,592 2,160 2,160 127%
Total administrative expenses 3,102 5,000 93%Actual 8,684 2,700 2,700 38%
5,953 6,000 102%54% Gust. Count 986 3,000 3,000 102%
12,000 104% 1,187 6,480 6,480 101%
84,812 173,000 2,173
3,215 93,180 93,180

46,297

I-Return on income before taxes (revenue- allowable costs) i41,082) 176,200 J I176,200 25% 1 · i5~oo81 95,33o 1 95,33o 1 27%

Operating margin I 14%1 9%1 9%1 -39% I 15%1 1o%1 ·~ -37%

Tillamook County franchise data only!

Current and Proposed Rates Current Proposed Current Proposed Current Proposed
Trash Cans/Rollcarts
Curbside weekly pickup (32-36 gallon cans/rollcarts) (60-65 gallon cans/rollcarts) (90-95 gallon cans/rollcarts)
Curbside twice weekly pickup
Curbside twice a month pickup $17.30 $17.30 $32.05 $32.05 $46.80 $46.80
Curbside Once a Month pickup
Each Additional Can $34.60 $34.60 $64.10 $64.10 $93.60 $93.60

$16.00 $16.00 NA NA NA NA

$8.00 $8.00 NA NA NA NA

$5.35 $5.35 NA NA NA NA

In Yard weekly pickup $20.90 $20.90 $38.70 $38.70 $56.50 $56.50
In Yard twice weekly pickup $41.80 $41.80 $113.00 $113.00
In Yard every Other Week pickup NA $77.40 $77.40 NA NA
In Yard Once a Month pickup NA NA $5.35 NA NA --
Each Additional Can NA NA NA NA NA
$5.35
NA NA

NA NA

Rental Fees $3.001 $3.001 I $3.ool $3.ool 1 $3.ool $3}?01

ITrash Cans/Rollcarts (per month)

Containers Current Proposed Current Proposed Current Proposed

Weekly pickup 1 cubic yard container 11/2 cubic yard container 2 cubic yard container
Each additional stop per week
Rental Fees $83.05 $83.05 $120.15 $120.15 $153.40 $153.40

Weekly pickup $83.05 $83.05 $120.15 $120.15 $153.40 $153.40
Each additional stop per week
Rental Fees $18.60 $18.60 $18.60 L____j_18.60 L____ $18.60 $18.60

Weekly pickup 3 cubic yard container -1 I4 cubic yard container 5 cubic yard container I
Each additional stop per week
Rental Fees II"A I I"A ~I

6 cubic yard container rA r - J8 cubic yard container 2 cubic yard container

$153.40 $153.40

rA 1 1 $153.40 $153.40

$18.60 $18.60

Roll-off/Drop Box containers (please list charges) No changes

10-15 yd drop boxes $97.50 per hour truck time (small truck) Drop box rent $13 I day or $200 /month

20-30 yd drop boxes $104.00 per hour truck time (large truck)

Extra/Additional charges (eg. Go Back, On Call, Extra Stop, NSF check, replacement, etc.): Please list!

1 medical waste $12/gal 20 gal med waste $85

2 on call $8 per can $10 NSF check Roll Cart Replacement cost $60

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Dear City Sanitary Service Customer,

Tillamook County will increase the dump fee at the Tillamook transfer station from $71.50 to
$73.43 per ton for franchised haulers. However, this will NOT increase your monthly bill unless you are
one of our commercial drop box customer's. If you have any questions please call us at (503) 842-6262
between the hours of 9am and 5pm Monday through Friday. Thank you for being a loyal customer and
we hope to keep providing you with great service at reasonable rates for many years to come.

Please stop by our lot at 2303 11th St. to see all the new recycling opportunities we now offer and
visit our website at www.citysanitaryservice.com or like us on Facebook to keep up with any news about
recycling in the future. We now recycle film plastic, plastic tubs, and you can bring your magazines,
newspaper, and junk mail all together to recycle in one place. Remember you can set out curbside
recycling inside the city limits and urban growth boundary of Tillamook on the same day as your
garbage collection for pick up.

Thank you,

Robert Poppe

Co-owner
Walker Waste Solutions LLC
PO Box486
Tillamook, OR 97141
503-842-6262
citysanitarvservicetillamookli/Jgmail.com
citysanitaryservice.com