AgdaPkt 2008-09-08 - Laserfiche WebLink

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7A Attachment 6). Tipping fees will have to increase by an amount sufficient to produce net Page 4 system revenues (system operating and non-operating revenues less expenses (excluding depreciation and debt service) that are at least 1.75 times debt service. The estimated one-time collection rate impact associated with the new debt service is 5.18% on 2008 revenue. This rate impact should be viewed in the context of the total rate impact of implementing new franchised collection services for member agencies. Based on the Board recommendations to date for the facility operations contractor and the collection services contractor, the estimated total collection rate impact (in 2008 dollars) for implementing future collection services are: Shoreway Facility Improvements Shoreway Operational Costs (new operator) Future Collection Services Contractor 5.18% 0% 9.96% 15.14% or a reduction When this scope of services for the new collection agreement was presented to Council on September 10, 2007 the estimated cost impact was an increase in the range of 5.22% to 13.25% exclusive of implementation costs which are now estimated to be about 0.70%. Accordingly, despite the current forecast increase being 1.19% higher than estimated one year ago staff believes the projected costs increases remain reasonably on target especially when considering the unanticipated spike in commodity prices within these past 12 months. Moreover, the current projected cost increase appears very reasonable given the rate increases (15%~30%) experienced in the bay area communities which have also undergone similar program conversions. For a typical residential in Redwood City, who has one 32 gallon container cotlected weekly, the increased cost attributable solely to the SROC improvements Will be about $0.98 per month (from $18.96 per month to $19.94 per month). It should be noted that there are other factors that will also increase garbage collection rates primarily the new solid waste agreement which will become effective January 1, 2011. The Shoreway facility improvements will provide for a more efficient manner in which to handle materials (solid waste, recyctables, and organics) within the facility and improved ingress and egress which collectively will result in more efficient facility operations. Accordingly, the best estimates at this point indicate that costs for operating the SORC under the new operating contract will be flat or perhaps be reduced compared to existing operations. None of the member entities are directly responsible for this debt; the only responsibility that each member entity has is to direct their solid waste to the SROC while the bonds are outstanding. Under the terms of the existing JPA Agreement, a member agency may not withdraw from the JPA without paying off its respective share of any outstanding SBWMA debt. Each member's pro rata share of the SBWMA's outstanding debt will increase once the 2009 notes are issued. To ensure that the SBWMA has the legal authority to refinance the 2009 notes in 2011 , the resolution approving the sale of debt by the SBWMA further states that, once the 2009 notes are issued, a member agency may not rescind its approval of the sale of bonds to refund the 2009 notes without paying off its pro rata share of the outstanding 2009 notes.