Waste Management Rate Adjustment Calculations Waste, Management, Rate, Adjustment, Calculations, Los Angeles 2002-2003 Waste Management Rate Adjustment Calculation Table RPV- Waste Management of Los Angeles Rate Adjustment Calculations
WASTE MANAGEMENT OF LOS ANGELES
FY 02-03 RATE ADJUSTMENT CALCULATIONS
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
(e) From weighted rate adjustment in Step Three
(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
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
period ending on the most recent December 31.