| WASTE MANAGEMENT OF LOS ANGELES |
|
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| FY 02-03 RATE ADJUSTMENT CALCULATIONS |
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| MAXIMUM SINGLE-FAMILY RESIDENTIAL RATES |
|
| Step
One: Determine disposal expense
and service revenue as a percent of total actual rate revenue |
| Revenue Component |
|
Annual
Amount (1/1/01- 12/30/01)(a) |
Percentage of Total
Revenue |
|
| Total Actual
Single Family Rate Revenue |
|
$2,518,874 |
100% |
|
| Less:
Actual Single Family Disposal Expense |
$556,299 |
22.10% |
|
| Actual
Single-Family Service Revenue (b) |
$1,962,575 |
77.90% |
|
| Step Two: Calculate percentage
change in adjustment factors |
|
| Adjustment Factor |
1999 |
2000 |
2001 |
Percentage
Change |
75% of PPI |
|
| Disposal
Tipping Fee Per Ton- (60% of total disposal was taken to WM owned landfills)* |
N/A |
N/A |
N/A |
-1.79% |
-1.34% |
|
| Disposal
Tipping Fee Per Ton- (40% of total disposal was taken to SERRF) |
$29.37
|
N/A |
$31.18 |
6.16% |
N/A |
|
| Producer
Price Index- Finished Goods (December of 2001 vs. December of 2000) |
N/A |
139.7 |
137.2 |
-1.79% |
-1.34% |
|
| * Since Bradley is owned by Waste Management,
increase in disposal is limited and has to equal the PPI factor. |
|
| Step
Three: Calculate weighted percentage
in single-family rates |
|
| Components of
Actual Revenue |
Component Weight
( c) |
Percent
Change |
Weighted Rate Adjustment |
|
| Disposal- Bradley (60% of total Disposal) (h) |
13.26% |
-1.34% |
-0.18% |
|
| Disposal- SERRF (40% of total Disposal) (I) |
8.84% |
6.20% |
0.55% |
|
| Service (75% of PPI) |
77.90% |
-1.34% |
-1.04% |
|
| TOTAL |
100.00% |
3.52% |
-0.67% |
|
| Step
Four: Apply weighted percentage
change to maximum single-family rates |
|
| Service |
Current
Monthly Maximum Rate |
Weighted
Rate Adjustment (e) |
Adjusted
Monthly Amount (g) |
Adjusted
Monthly Rate (g) |
|
| Curbside
2x/wk |
$19.10 |
-0.67% |
-0.13 |
$18.97 |
|
| Pup Route 2x/wk |
$22.89 |
-0.67% |
-0.15 |
$22.74 |
|
| Backyard 2x/wk |
$24.10 |
-0.67% |
-0.16 |
$23.94 |
|
| Low Income 1x/wk |
$15.00 |
-0.67% |
-0.10 |
$14.90 |
|
| Extra Pickup |
$21.00 |
-0.67% |
-0.14 |
$20.86 |
|
| Bulky Item Pickup after
3 annual free pickups |
$35.00 |
-0.67% |
-0.23 |
$34.77 |
|
| Multi-family Curbside 1x/
wk |
$15.00 |
-0.67% |
-0.10 |
$14.90 |
|
| Multi-family Curbside 2x/
wk |
$21.66 |
-0.67% |
-0.15 |
$21.51 |
|
|
| TOTAL
RATE REDUCTION FOR SINGLE-FAMILY CUSTOMERS: |
$2,518,874 x -0.67%= |
$16,876
|
|
| (a)
For the twelve months ending on the date six months prior to the effective
date of the rate adjustment. |
|
| For example, for the rate adjustment effective
July 1, 2002, the revenue and disposal expense used should be |
| for the twelve months ending December
31, 2001. |
|
| (b) Includes
fees remitted to the City (Collector fees) |
|
| (c) From
percent of total revenue in Step One |
|
| (d) From
percent change in Step Two |
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| (e) From
weighted rate adjustment in Step Three |
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| (g) Current
rate multiplied by (1+ (weighted rate adjustment)) |
|
| (h)
Weighted average for all disposal facilities used by the hauler in the
implementation of service under this |
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| agreement. The change in the disposal tipping fee shall be based on the change
between the most recent |
|
| tipping fee rates are based and the new
tipping fee. Rates were based
on 1999 tipping fees. |
|
| (i) Percentage
change in PPI in Step 2 multiplied by 75%. The change in the PPI shall be for the twelve
month |
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| period ending on the most recent December
31. |
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