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HomeMy WebLinkAbout02 ASSESS SOLID WASTE 08-05-02AGENDA REPORT NO. 02 08-05-02 MEETING DATE: TO: FROM: SUBJECT: AUGUST 5, 2OO2 830-50 WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT RESOLUTION NO. 02-65 PLACING ASSESSMENTS FOR SOLID WASTE COLLECTION ON THE 2002-2003 TAX ROLL SUMMARY In accordance with the current Franchise Agreement, Federal Disposal Service has requested approval of rate adjustments for all customers pursuant to an increase in the Producer Price Index and an additional extraordinary increase in commercial rates. Federal Disposal submitted a new extraordinary rate adjustment request on July 25th based on a signed agreement with the International Brotherhood of Teamsters, Local 396. Staff recommends approval of the Producer Price Index adjustments for residential and commercial rates and recommends consideration of extraordinary rate adjustments related to the union contract be deferred to September 16, 2002 to allow time for staff to analyze the new request. RECOMMENDATION Adopt the residential, commercial and roll off rate adjustments based on the change in the Producer Price Index and adopt Resolution No. 02-65 placing assessments for solid waste collection for residential units only on the Tax Roll for fiscal year 2002-2003. Staff further recommends deferral of consideration of the extraordinary increase until the September 16, 2002 meeting FISCAL IMPACT Commercial customers only pay a 2% Franchise Fee. The commercial rate will increase franchise fees paid to the City by a proportionate amount. BACKGROUND Pursuant to the Franchise Agreement for Integrated Waste Management Services, Federal Disposal Service (FDS) has requested City approval of residential and commercial rate adjustments. The franchise agreement permits a rate adjustment commencing with the third year of the Franchise Agreement and would become effective October 1, 2002. Only single family residential collections up to three units and commercial can collection costs are placed on the tax rolls. Commercial bin and roll off services are billed directly by Federal Disposal Service. All rates are governed by the existing franchise agreement and are adjusted annually using the same factors. The change in the Producer Price Index (PPI) during the 2001 calendar year is the primary basis of the rate increase computation. S:\City Council Items\02 City Council Items\FDS Rate Adjustment 8-5-02.doc The PPI is applied only to hauler service costs (labor, materials, fuel, etc.) and not to disposal costs. Disposal costs are fixed at $22 per ton by the Orange County Solid Waste Flow Control Agreement. This approach results in a weighted application of the rate increase. The table below demonstrates the application of Producer Price Index utilized by FDS: PPI 12-31-00 PPI 12-31-01 Change % Change 124.2 129.5 +5.3 +4.3% The calculated residential rate for 2002-2003 is an increase of $.42 per month, $5.04 for the year. The proposed weighted rate adjustment represents a 3.4% increase over the existing rates. Utilizing the same weighted methodology, commercial and will be increased by 2.7%. Roll off Rates would be increased by the full 4.3% because disposal costs are paid directly by the customer. All recommended rates are attached as part of Exhibit B. The following table details the proposed changes to the residential rates and a typical. commercial rate for 2002-2003: Current Weighted Recommended Adjusted Service Monthly Adjustment Adjustment Monthly Rate Rate Single Family Automated Cart $12.17 3.4% $0.42 $12.59 Manual Can Collection $7.34 3.4% $0.25 $7.59 Commercial- 3 yd bin 1 x a week $39.95 2.7% $1.09 $41.04 In addition to the PPI adjustment, FDS initially requested an extraordinary rate adjustment of $367,152 to compensate for expenses which it says were unanticipated when the contract bids were submitted in early 2000. The extraordinary request was for labor costs for various residential services that FDS said were not covered by the Franchise Agreement and additional costs associated with a future union labor contract. On July 25th, 2002 Federal Disposal Service submitted a new rate request for $315,288 which withdrew the request for costs associated with residential services and included a higher union wage than was identified in the previous request. Staff has not had adequate time to fully review the new request and recommends that the City Council defer consideration of this extraordinary request until the September 16, 200 City Council meeting to allow staff time to fully analyze the new request. Staff is not prepared to offer a recommendation regarding this extraordinary request for the following reasons: 1) 2) 3) 4) s) 6) 7) The City is under no contractual obligation to approve an extraordinary rate adjustment. The PPI adjustment method identified in the Franchise Agreement compensates FDS to a degree for labor costs increases. The specific hourly labor rate associated identified by FDS is substantially more than the previous extraordinary request. The justification for additional hours is not apparent in the submitted documentation. FDS preferred allocation of all of the labor contract costs to commercial customers is not equitable as the union contract applies to all drivers, mechanics and helpers (residential, commercial and roll off). Multiple rate scenarios allocation have been submitted for consideration The union contract suggests that the City is the only FDS customer required to pay higher rates. Residential rates must be set at this City Council meeting in order to be placed on the property tax roll. The rates will remain in effect for the entire 02-03 tax year and can not be adjusted until the next tax year. Pursuant to the Franchise Agreement, PPI adjustments should become effective on October 1. Extraordinary adjustments can be authorized at any time. However, if the extraordinary adjustment affects residential rates, alternatives to the tax roll must be considered to collect the fees. In conclusion, staff recommends that the City Council adopt the PPI adjustments for all residential, commercial and roll off rates and defer action on any extraordinary rate increase related to the anticipated labor agreement until staff has had the opportunity to fully analyze the new request. Public Works Department Exhibit A Exhibit B Exhibit C July 25, 2002 FDS Rate adjustment proposal Staff recommended rate adjustment OC Rate Survey 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 02-65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA ADOPTED PURSUANT TO THE PROVISIONS OF SECTION 5473 ET SEQ. OF THE HEALTH AND SAFETY CODE OF THE STATE OF CALIFORNIA, APPROVING AND ADOPTING A REPORT RELATIVE TO PARCELS OF REAL PROPERTY RECEIVING SOLID WASTE COLLECTION SERVICES, DETERMINING THE CHARGES FOR SOLID WASTE COLLECTION TO BE ASSESSED AGAINST THE RESPECTIVE LOTS OR PARCELS OF LAND AS THEY APPEAR ON THE CURRENT ASSESSMENT ROLL The City Council of the City of Tustin does hereby resolve as follows: I. That proceeding were duly instituted, conducted and completed pursuant to provisions of Section 5473 et seq. of the Health and Safety Code of the State of California. A. A written report dated July, 2002, containing a description of each parcel of real property receiving solid waste collection services and facilities and the amount of the charge proposed to be levied upon each parcel for the collection of solid waste for the fiscal year 2002-2003 was prepared and filed with the City Clerk of the City of Tustin on B. That a Public Hearing to hear and consider all objections or protests, if any, to the aforesaid report and proposed charges was duly set for July 15, 2002 at 7:00 o'clock p.m. in the Council Chamber of the City of Tustin at 300 Centennial Way, Tustin, California. C. Said hearing was duly noticed as required by law, by publication once each week for two successive weeks on July 4, 2002 and July 11, 2002 in the Tustin News, a newspaper of general circulation in the City of Tustin. D. At the foresaid time and place the duly noticed hearing was held and all persons who were present were heard and all comments, objections, and protests to the aforesaid report and proposed charges were duly heard and considered by the City Council. E. 'The charges proposed in the aforesaid report are fair and reasonable, are commensurate with the services provided, and the charge therefore should properly be collected on the tax roll in the same manner, by the same persons and at the same time as, together with and not separately from, general taxes. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Resolution No. 02-65 Page 2 II. The City Council hereby elects to have the charges set forth in the aforesaid report collected on the tax roll in the same manner, by the same persons, at the same time as, and together with and not separately from its general taxes, and hereby authorizes that such charges be collected on the tax roll, as all prescribed to the provisions of Health and Safety Code Section 5473 et seq. III. The Resolution shall be effective following its adoption by a two-thirds vote of the members of the City Council and shall remain in force and effect and said charges shall be collected in the manner as foresaid for the year 2002-2003 and for each subsequent year as authorized by the hereinabove referenced section of the Health and Safety Code. IV. The City Clerk is authorized and directed to forthwith file a certified copy of this Resolution with the Auditor of the County of Orange, together with a copy of the hereinabove described report, and a statement endorsed thereon over her signature that the said report has been finally adopted by the City Council of the City of Tustin. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin, California, held on the 5th day of August, 2002. Jeffery M. Thomas, Mayor ATTEST: City Clerk EXHIBIT A JULY 25, 2002 FEDERAL DISPOSAL SERVICE RATE ADJUSTMENT PROPOSAL '" fF'EDEI~J~L / DISPOSAL Corporate Office: 1661 East Palm Street. Santa Ana, CA 92701 Mailing Address: PO BOX 118 * Santa Ana, CA 92702 Telephone: 714-542-7701 · Fax: 714-542~35 July 25, 2002 Mr. Joe Meyers Public Works Department City of Tustin 300 Centennial Way Tustin, California 92780 Integrated Solid Waste Management Services Franchise Annual Rate Adjustment Union Labor Agreement Dear Joe, On July 24, 2002 this company and the Teamsters Local 396 finalized its labor negotiations and signed an agreement involving employees on the Integrated Solid Waste Management Services Franchise in the City of Tustin. In support of our May 15, 2002 request for a rate adjustment based on a extraordinary increase in labor costs; please accept the attached final labor agreement. Following the City's concerns addressed by staffin its July 15, 2002 Council Meeting Report, we hereby modify this request for a rate adjustment as follows: First, we exclude from our current request additional hours associated with performing services "above and beyond" the terms of the Franchise Agreement. We maintain and support our request for an increase of 6% in total labor hours (2,806) for additional labor that will be required with a union labor agreement. The conditions in the agreement that predicate this need are: Federal Disposal Service currently performs selected trash collection tasks with managerial personnel. A "working manager" significantly contributes to an efficient work environment by eliminating conjecture in many workplace circumstances. A ''working manager" has a special ability to motivate and direct work because he is "hands on". Article HI, Section 9, of the Labor Agreement prohibits Supervisory or Managerial personnel from perfo ~rmJng bargaining unit worlc This condition, present .in most union labor agreements, significantly alters a manager's effectiveness and changes the workplace environment, to the extent that greater supervision and labor hours are required. 2. Article V, Section 1, and Article XIX, Section 1 of the labor agreement requires that the principal consideration in job assignments be based on an employee's Donald Shubin Page 2 7/25/2002 seniority (most years at company). This provision, also prevalent in most union labor agreements, takes critical authority away from management and rests it with employees, resulting in a need for increased supervision and labor hours. Secondly, based on the staff's concern over the allocation of labor costs, this submittal provides the City with two alternatives: (1) with the extraordinary increase in labor costs proportionately allocated to Residemial, Commercial, and Roll off rates, or (2) with the extraordinary increase in labor costs allocated only onto Commercial rates. These alternatives are provided to the City to give them the oppommity to select which method to utilize to allocate the increased labor costs. Attached hereto are the following required documents for this submittal: Title 1 Final Labor Agreement w/Cost Detail 2 Alt. 1 (Revised) Proposed Rates to the Franchise with Exhibits SA, 5B, & 5C 3 Alt. 2 (Revised) Proposed Rates to the Franchise with Exhibits SA, SB, & 5C 4 Rate Survey, (Revised) Tustin/OC Description Proportional allocation of labor increase Commercial allocation of labor increase Based in Commercial Labor Distribution Thank you in advance for your consideration in reviewing this request. We look forward to an opportunity to answer questions the City may have. ~,Donflfd Shub' in President C. Public Works Director, Mr. Tim Serlet City Attorney, Ms. Lois Jeffrey Mayor Mr. Jeffery Thomas Mayor Pro Tern, Ms. Tracy Wills Worley Council Member, Mr. Mike Doyle Council Member, Mr. Lou Bone Council Member, Mr. Anthony Kawashima Donald Shubin Page 3 7/25/2002 Attachment 1 Final Union Labor Agreement With Cost Detail FEDERAL DISPOSAL SERVICE LABOR AGREEMENT COST INCREASE DETAIL (Revised) July 25, 2002 FDS Bid Dec-99 Un~n Analysis 1 Hourly Rate (Regular) $ 12.00 $ 2 Weighted Rate (Including OT) $ 14.00 $ Benefits 3 Health $ 0.7:2 $ 4 Pacific Trust Fund (Pension) $ 5 Vacation $ 0.60 $ 6 Holiday $ 0.28 $ 7 Sick Leave $ 13.90 16.29 2.34 0.50 O. 535 O.535 0.16 Subtotal-Benefits $ 1.60 $ 4.07 Statutory Workers Comp $ 1.08 $ Payroll Tax $ 0.92 $ Subtotal-Statutory $ 2.00 $ Total Cost/Man per hour $ 17.60 $ Annual Labor-Hrs. 45,540 Increase Labor Hrs.-Union Subtotal-Hours Annual Contract Labor Cost Annual DnVer- W2 1.49 1.25 $ 801,504.00 $ 40,040.00 '2.74 23.10 45,540 2.806 48,346 $1,116,792.60 $ 46,589 31% Increase 6% Increase $ 315,288.60 Increase 2 - Base on 60 hrs work per week 3 - Base on worker with family 5, 6, 7 Base on employee with 3 years or more with the company H:~FOSusers~Anna\Don's ProltPRcost-Union FEDERAL DISPOSAL SERVICE EXTRAORDINARY LABOR COST INCREASE DETAIL (Notes) (Revised) July 25, 2002 Please note: His per week I O/T: $20.85 per hors 139 55 2 <(40*13.9)=A+(20.85*10)=B+(27.80*5)=C>/55 TOTAL HOURS RATE/HR 2 A=556.00 B=200.85 C=139.00 895.85 55 16.29 40 3 2080/12=173.33 hrs/mo 3 Average cost $520(Heaith) $3.50(LJfe) $31.30(Dental) per mo - $150 (employee's contr)=$404.80 3 ($404.801173.33 hfs = $2.34 per hour per employee paid by company 4 Set by Union 40 5 80 hrs at regular pay13.9 = $1,112 per year - base on 2,080 hrs = .535 per hrs 6 6 standard holidays and 4 floating holidays = 10days x hm = 80hrs 80 hm at regular pay 13.9 = $1,112 per year- base on 2,080 hfs = .535 per hfs 7 1 days on 1st year, 1 additional day during each year - Maximum 5 days 24 hrs at regular pay 13.9 = $333.60 per year- base on 2,080 hrs = .16 per hrs 8 Pay per hfs 16.21*12.44% expenence rate * 0.74% expenence Modification = 1.49 9 Fica & Medicare 16.21*7.65% = 1.24 & 0.8 % on the .1st $7,000 each year (only $56 per year) H:\FDSusersL~n na~Don's Proj\PRcost-Union dUl-/ct.-/_UU/ N~'U gq.; L~ r~, ~'tg, i~.q b~U U~IUf ?, U] OANNY d. BRUNO Secm~lT-Tmasurer July 24, 2002 TEAMSTERS LOCAL UNION NO. 396 Package and General .Utility Drivers WC Thomas The American Consulting Gn3up lng 3185 Airway Avenue Suite J Costa Mesa, CA 925'26 Fax: 714-540-0907 Dear Mr, Thomas: Please consider this leper as our signature an the proposed lai3or agreement with Federal Disposal, The Local Union does reset"ye the right to correct any errors or ~rnisslons wi~in ninety (90) days of the ratification of the agreement, Re,~~lly, bANN¥ J,TBRUNO Sacru,~ The.surer 'Teamsters L~ Union 396 DJB:dg~ ':'.~eonone (62§) ~15-3836 · '~877} 7TLU396 · ~87T~ 78&-a3g~ · Fax (,~.6) 915-3635 - E-ma~l; L396T~=.AM~aoLcom ~1~0 CAK PARK · SUITE 2OC · COVINA, CALIFORNIA ~1/'"~ Employer Proposal for Settlement AGREEMENT between Federal Disposal Service/Shubin Services, Inc. "Employer" and PACKAGE .AND GENERAL UTILITY DRIVERS LOCAL UNION 396 INTERNATIONAL BROTHERHOOD OF TEAMSTERS "Union" ARTICLE I ARTICLE il ARTICLE !11 ARTICLE IV ARTICLE V ARTICLE VI ARTICLE VII ARTICLE VIII ARTICLE IX ARTICLE X ARTICLE Xl ARTICLE Xll ARTICLE Xlll ARTICLE XIV ARTICLE XV ARTICLE XVl TABLE OF CONTENTS Employer Proposal AGREEMENT between Federal Disposal Service/Shubin Services, Inc. and Package And General Utility Ddvers Local Union 396 International Brotherhood of Teamsters COVERAGE OF AGREEMENT .................................................. 1 RECOGNITION ....................................................................... 1 WORKING CONDITIONS ......................................................... 3 WORK WEEK, WORKING HOURS AND OVERTIME ............................................................................ 6 SENIORITY ............................................................................ 8 DISCHARGE, WARNINGS AND PROTEST .................................. 9 GRIEVANCE AND ARBITRATION ............................................ 11 RIGHTS OF -MANAGEMENT · . ................... 13 PROTECTION OF RIGHTS ........................ ~ ............................. 14 LEAVE OF ABSENCE ' . ....................... 15 SUBCONTRACTING ............................................................. 16 SUCCESSORS AND ASSIGNS ............................................... 17 PROHIBITION OF STRIKES AND LOCKOUTS ........................... 18 HOLIDAYS ........................................................................... 19 VACATION ......................................................................... 21 PENSION ............................................................................ 23 ARTICLE XVII ARTICLE XVIII ARTICLE XIX ARTICLE XX ARTICLE XXi ARTICLE XXIi ARTICLE XXIll ARTICLE XXIV APPENDIX APPENDIX "B" GROUP INSURANCE ............................................................... 24 DRIVE AUTHORIZATION AND DEDUCTION .............................. 25 VACATED OR NEWLY ESTABLISHED ROUTES .......................26 DRIVER'S LICENSE ............................................................. 27 PHYSICAL EXAMINATIONS AND TESTING .............................. 28 EXTRA CONTRACT AGREEMENTS ........................................ 29 SICK LEAVE ................................................................................. 30 TERM OF AGREEMENT ....................................................... 31 EXPEDITED GRIEVANCE AND ARBITRATION PROCEDURES WAGE PROGRESSION RATES [I AGREEMENT THIS AGREEMENT is entered into this .~_L~ day of .~/LI by and between Federal Disposal ServicelShubih Services, Inc., for an~l on behalf of the hereinafter specifically designated location only located at 1661 East Palm Street, Santa Aha, California hereinafter designated as the "Company" or "Employer' and LOCAL UNION 396, affiliated with the INTERNATIONAL BROTHERHOOD OF TEAMSTERS hereinafter referred to as the "UNION". The parties hereto agree to be bound by the terms and provisions of this Agreement. ARTICLE ! COVERAGE OF AGREEMENT This Agreement shall have application to all employees in the following described unit for which employees the Employer recognizes and acknowledges the Union as the sole and exclusive bargaining agent for the purpose of collective bargaining as related to wages, hours of work and working conditions. . .... ,- INCLUDED: All full time and regular part-time municipal service and construction drivers, meChanics, helpers and yardpersons. The Employer agrees to notify the Union of any new classifications for new positions for existing employees covered under this Agreement. Wages and benefits shall be set at the lowest rate as established by the closest existing classifications. The Union shall have 72 hours from the time of notice to approve or disapprove of such addition. Non- action by the Union shall be considered as approved. Time may be extended by mutual agreement. EXCLUDED: All other employees, Office clerical employees, Salespersons, Professional employees, Guards and Supervisors as defined in the National Labor Relations Act; as amended. This Agreement shall have no application to any other facility of the Employer or any new business the Employer may acquire during the contract term other than the facility located the above address. ' ARTICLE II RECOGNITON SECT]ON 1. RECOGNITION. The Employer recognizes the union as the exclusive representative of the employees covered by this Agreement for collective bargaining. It shall be a condition of continued employment that all employees of the Employer covered by this Agreement who are members of the Union in good standing on the effective date of this Section shall remain members in good standing and those who are not members on the effective date of this Section shall, on the thirtieth (30th) day following such date, become and remain members in good standing in the Union. It shall' also be a condition of continued employment that all employees covered by this Agreement and hired on or a~er the effective date of this Section shall, on the thirtieth (30th) day following the beginning of such employment become and remain members in good standing in the Union. SECTION 2. NEW EMPLOYEES. VVhen new or additional employees are needed, the Employer shall notify the Union of the number and classification of employees needed. The Union shall nominate applicants to such jobs. The Employer shall choose between any nominees of the Union and any other applicants on the basis of their qualifications for the job. No applicants will be preferred or discriminated against by the Employer or the Union because of membership or non-membership in the Union. SECTION 3. NEW HIRES AND TERMINATIONS. The Employer agrees to notify the Union within thirty (30) days of all hires and terminations. SECTION 4. THIRTY-SIX-HOUR NOTICE. The Union agrees that written notice shall be given to the Employer at least thirty-six (36) hours before any employee is to be removed from his employment by reason of his failure to obtain or maintain his membership in good standing in the Union. SECTION 5. CHECK OFF. The Employer, for ali employees covered by this Agreement who shall voluntarily authorize it in writing, will deduct from the pay period following membership in the Union and each succeeding first (1st).pay pedod of each month Union dues for the preceding month and initiation fees which are uniformly required for all members of the Union and the employer will remit the monies to the Union within fifteen (15) days from the time said deductions are made. The Union shall indemnify and hold the Employer harmless against all claims, damages, action or other liabilities including the Employees reasonable attorney's fees that may be made against or incurred by it arising by reason of action or inaction by the Employer and the reliance upon signed authorization cards furnished to the Employer by the Union or employees with the purpose of complying with any of the provisions of the Article. .e The Employer shall add to the list submitted by the Union, the names of all new employees covered by this Agreement who authorize check-off forms, hired since the preceding list was submitted, and delete the names of any employees who are no .longer employed. Where an employee who is on check-off is not on the payroll during the week in which the deduction is to be made or has no earnings or insufficient earnings during the week or is on leave of absence, the employee must make arrangements with the Local Union to pay such dues in advance. ARTICLE !!i WORKING CONDITIONS SECTION 1. The wage rates and classifications covered by this Agreement are set forth in the schedule identified as Appendix "A" attached hereto and made a part hereof. SECTION 2. RATES OF PAY NOT REDUCED BY THIS AGREEMENT The Employer agrees that no employee member of the Union, who, prior to the date of this Agreement, was receiving more than the ram of wages designated in this Agreement better than those herein provided for the class of work in which he was engaged, shall, suffer a reduction in the rate of wages through the operation of or because of the adoption of this Agreement. SECTION 3. WORK PERFORMED IN A HIGHER CLASSIFICATION. When an employee is requested to do work in a higher rated classification, after four (4) hours he shall receive the higher rate of pay for the entire day in which such work is performed. When an employee is requested to work in a lower classification, he shall receive his regular rate of pay for the entire day in which such work is performed, if an employee is reclassified on a permanent basis, the employee shall receive the rate of pay for that classification for which they have been reclassified to. SECTION 4. PAYROLL CHECK. Upon the request of the Union on behalf of an employee whose time or pay is questioned, the Employer agrees to submit the payroll records of such employee for audit by an agent of the Union. The Employer agrees to provide a breakdown of hours worked on the payroll check stub. TIME CLOCK. The Employer shall install and maintain a time clock at all times for the purpose of computing all hours worked. SECTION 5. SAFETY AND HEALTH. The Employer shall make reasonable provisions for the safety and health of its employees during the hours of their employment. All protective devices, wearing apparel and Other equipment, when required by the employer, except footwear necessary to properly protect employees from injury and foul weather shall be provided for and cost assumed by the Employer. Whenever an employee is required to wear a specified type of uniform or article of dress, the cost of furnishing the same shall be assumed by the Employer. The Employer will furnish working gloves to the drivers. The Employer shall assess a charge for deposit equal to the replacement value of a full set of specified uniforms or article of dress. The deposit will be used to provide for replacement of lost or employee damaged specified uniforms or articles of dress. The deposit will be refundable to the employee provided all uniforms are returned in acceptable condition, subject to normal wear and tear. The employer shall not require employees to take out on the streets or highways any vehicle that is not in safe operating condition or equipped with the safety appliances prescribed by law. It shall not be a violation of this Agreement where employees refuse [o operate such equipment, until such equipment has been approved as being safe by the maintenance or mechanical depa~ment. Employees shall immediately or at ~he end of their shift repor~ all defects cf equipment. Such repOrts shall be made on suitable forms furnished by the Employer and shall be made in multiple copies, one copy to be retained by the employee. The Employer shall not ask or require any employee to work with or take out equipment that has been reported by any other employee as being in an unsafe operating condition, until same has been approved as being safe by the maintenance or mechanical department. The care of protective devices, safety apparel, foul weather gear and other equipment shall be the responsibility of the employee to whom it is issued.' The Employer may assess a fair charge to cover loss or willful destruction thereof by the employee. Employees refusing to wear required uniforms or articles of dress shall be subject to discipline including immediate discharge. Nothing in this Agreement shall be construed to prevent, preclude or inhibit the Employer's compliance with the Americans with Disabilities Act (including making reasonable accommodations of qualified individuals with a disability), as well as the Family and Medical Leave Act. SECTION 6. UNION BULLETIN BOARD. The Employer agrees to provide a glass enclosed bulletin board in a visible area. Postings by the Union on such board shall be confined to official business of the UniOn and on Union letterhead only. Bulletin Boards to be located at each time clock where Union employees are required to clock in and out, with keys provided to the Union. SECTION 7. Authorized Agents of the Union shall have reasonable access to the Employer's establishment, not limited to an agreed upon location, provided that 24 hour notice for an escort is given for complete access during working hours for the purpose of adjusting disputes, investigating working conditions, collection of dues, and ascertaining that the Agreement is being adhered to. This privilege shall be exercised so that no time is lost to the Employer. The Union and any of it's representatives agrees that it will indemnify and shall hold the Employer and its employees free and harmless from all claims, actions, damages to persons or property, penalties, obligations, or liabilities that may be asserted or claimed arising out of or in connection with Employers operation or activities, except for the sole negligence or willful misconduct of the Employer or its employees. SECTION 8: STEWARDS. The Employer recognizes the right of the Local Union to designate job stewards. Stewards may wear a pin no more than three (3) inches large designating themselves as Stewards. The authority of job stewards so designated by the Local Union shall be limited to, and shall not exceed, the following duty and activity. , The transmission of information, Which shall originate with and is authorized by the Local union or its officers, provided such information; has been reduced to writing. . Recognizing the importance of the role of Union Stewards in resolving differences or disputes between the Employer and its employees, the employer reaffirms its. commitment to the active involvement of Union Steward's in such processes ~n accordance with the terms of this Article. In situations where an employee reasonably believes an investigatory interview will result in disc~piinan/acdon, and the employee specifically and affirmatively requests representation by a Union Steward or designated alternate, the Employer will honor such request if it proceeds with the investigatory interview. It is understood, however, that this Article shall not interfere with legitimate employer prerogatives (for example, the Employer is not required to postpone an interview because a Union Steward or the designated alternate is unavailable), the Employer may carry on its inquiry without interviewing the employee, and the Employer has no duty to bargain with any Union Steward or the designated alternate who may be permitted to attend the investigatory interview. Moreover, the Employer need not honor such request if the interview is called merely to inform an employee of disciplinary action already derided upon. Job stewards have no authority to take strike action, or any other action interrupting the Employer's business, except as authorized by official action of the Local Union. The Employer and Union recognizes these limitations upon the authority of job stewards. The Employer and Union in so recognizing such limitations shall have the authority to impose proper discipline, Including discharge, in the event the job steward has taken unauthorized strike action, slowdown or work stoppage in violation of this Agreement. SECTION 9. It is not the intent of the Company to have Supervisors or non-represented employees perform work, which is within the scope of the Bargaining Unit. The parties recognize that Supervisors and non-represented employees will on occasion perform Bargaining Unit work where an emergency condition exists (e.g., employee unavailability, minor repair(s) and immediate action is required to maintain on-going operations, or instructing employee(s) in the course of their duties with the employee(s) present). They shall not be used to replace or displace Bargaining Unit employees. ARTICLE IV WORK WEEK, WORKING HOURS AND OVERTIME SECTION 1. The workweek for hourly municipal service employees will consist of five (5) consecutive eigt~t (8) hour days or four (4) consecutive ten (10) hour days each shift. One and one-half (1 112) times the employee's regular straight time hourly rate of pay will be paid to hourly employees covered by this Agreement for all work performed in excess of fort,/ (40) hours in any one (1) workweek. Two (2) times the employee's regular straight time hourly rate of pay will be paid to ali employees covered by this Agreement for all hours worked on the seven[h (7th) consecutive day of work or for hours worked on the sixth ($th) consecutive day for any employee working on the 4110 work week SECTION 2. The rates paid all em¢loyees covered by this Agreement will be in accordance with Appendix "B" attached hereto and made a part hereof. SECTION 3. TIME WORKED. All municipal service trash employees covered b,v this Agreement shall be paid hourly for all time spent in the service of the Empioyer. Rates of pay provided for by this A§reement shall be minimums. Time shall be computed from the time the employee is scheduled to report to work and registers in umil he is effectively released from work and registers out. All time lost due to delays as a result of overloads, certificate or equipment violations involving federal, state cr city' reguiaticns, which occur through no fault of the driver, shall be paid for exclusive of meai periods. Each meat period snail not exceed one- half (1/2) hour and'will be taken without pay. All municical employees shall be granted a fifteen (15'~ minute rest period approx;ma~;ely half-way ~:hrough '.he first and second naif of t!~eir shift. Such rest periods shall be taken without loss of pay. The Em.~loyer shall pay for all overtcads, certificate anc equipmem violations, except that any viola[ion in gross excess over ;he le..gai weight limit, may Ce the driver:$ responsibility. Trucks equipped wi~h weighing devices cheil be the driver's responSil::iiity for all over!oads~ provided the weighing devices are working properly. _ . STARTING TIME. The Employer shall designate a regular starting time for municipal employees covered by this Agreement. Employer shall allow a s~-arting time grace period of no more than 10 minutes once per week. All construction semi-truck driver(s) shall only be paid based on time equal to the customer billing hours. All drive time to and from the customer site shall r~ot be consiCered time worked. In the case of an,/dispute involving pay for ~uch drivers, copies of the customer billing record shall be furnished to the local union and/or shop stewart. SECTION 4. There shaii be nc pyr~,miding or duplicating of any premium cr overtime .~ates ,~f pay. SECTION 5. EMPLOYEE IDENTIFICATION A regular full time employee covered by this Agreement shall be defined as an employee who has completed the probationary pedod specified herein, dating from the employee's most recent date of hire, and who is scheduled to regularly work a minimum of forty (40) hours per week. ARTICLE V SENIORITY SECTION 1. In ali cases where the ability of employees are equal, the accepted rule of seniority shall apply by classification (trash, mechanics, construction) in cases of layoffs, promotions, shift preference and vacations after an employee has served his one hundred and fifty days (150) days probationary period. As qualified above, seniority is defined as the length of an employee's continuous service from the date of his most recent date of hire. Within said probationary pedod the Employer shall have the dght of termination, without recourse by the Union or the employee. Said probationary employee shall not be discriminated against for taking part in normal Union activities. All overtime work is to be first offered to the most senior employee then working and available within the affected classification; provided, however, that the assignment of overtime work need not be offered or assigned in a manner that would, in the Employer's reasonable judgment, affect the Employer,s efficiency or ability to service its customers in a timely and effective manner. Employees covered by this Agreement shall be given a reasonable opportunity to bid for other available classifications covered by this Agreement. SECTION 2. A regular employee is defined as an employee who has completed one hundred and fifty (150) continuous calendar days of employment, unless the employee is hired by the employer within thirty (30) days of termination of his or her employment of at least'twelve (12) continuous months with another Local Union 396 employer, as verified by his or her employment application, engaged in the Solid waste collection business in which case the probationary period shall be only thirty (30) continuous calendar days. SECTION 3. When it is necessary to reduce the number of employees, they shall be laid off within each classification according to the seniority list as defined under Section 1 above. When an increase in the number of employees by the Employer is warranted, employees shall be restored to duty according to their seniority, provided the affected employee responds to the call of the Employer which call shall be sent to the last known address of the employee, as filed with the Employer, by certified mail or facsimile with hard copy to follow and to the Local Union by certified mail or facsimile with hard copy to follow and.'reports for duty within seventy-two (72) hours from time of dispatch of said call to the affected employee. The giving of the aforementioned call shall fulfill the obligation of the Employer under this provision of the Agreement. LOSS OF SENIORITY. Accumulated seniority shall be lost for any of the following reasons: . 2. 3. 4. Discharge for just cause. Voluntary quit. Retirement Failure to report to work as required in Article IV, Section 2 hereof. ARTICLE VI DISCHARGE. WARNINGS AND PROTEST. Section 1. DISCHARGE AND DISCIPLINE. It is mutually agreed that the Employer has the right to discharge or otherwise discipline any employee for just cause. Discipline is intended to be constructive and timely. Discipline must be given within ten (10) working days of notification of the event or receipt of any governmental agency report (if applicable). Disciplinary write-ups will be cumulative except for absenteeism and tardiness. Progressive discipline as outlined below represents the maximum penalties, except that accidents and property damages that exceed an estimated value of $250 shall be a three-step process and will by-pass the verbal warning. 1. Verbal Warning 2. Wdtten Waming 3. Suspension/Final Written Warning 4. Termination Section 2. The exception to the Section 1 above shall apply to the following termination offenses where progressive discipline need not be followed. 1. Proven Theft (including scavenging) 2. Failure to work as directed 3. Giving out route or billing information to any unauthorized person 4. Willful wanton or malicious conduct resulting in accident or injury 5. Reckless Driving ... 6. 'Unprovoked assault while on duty; including lewd conduct or abusive conduct and language o Intoxication, Drinking or the use or sale of alcoholic beverages or possession or sale or use of illegal substances while on the ErnplOyeds premises or on or in Employer owned or leased vehicles 8. Carrying of unauthorized passengers o Fighting, or possession of firearms or weapons on the Employeds property or in the Employer's vehicles 10. Harassment as defined in Title 7 11. Willful damage to Empioyeds property 12. Failure to report any accident immediately Employees to whom written warning notices are issued must sign the warning notice to attest only to the fact' that they have received a copy of said warning notice. The Employer agrees to notify the union by phone the same day, or if a non-work day as soon as possible, when any regular employee is terminated or suspended for any reason. Notwithstanding the foregoing, the Employer will have the dght to discharge or terminate, without cause, any employee dudng the first one hundred and fifty (150) days of their employment, if said employee is not satisfactory to the Employer. Any such discharge or termination will not' constitute a grievance against the Employer nor be subject to the provisions of Article VII of this Agreement. The Union will have the fight to investigate the discipline or discharge of any regular employee covered by this Agreement and may protest any such discipline or discharge believed by the employee and/or the Union to be unjustified, provided the employee~ or employees involved voluntarily consent in writing, to said protest by the Union. Any such protest must be submitted for settlement as provided for in Article VII of this Agreement. Any protest not submitted for settlement as provided will be waived for ali purposes. Time limits can be extended by mutual agreement. A warning notice as herein provided shall not remain in effect for a period of more than twelve (12) months from the date said warning notice is delivered to the employee. 10 ARTICLE VII GRIEVANCE AND ARBITRATION The parties further recognize and agree that industrial peace is to be desired at all times in the area covered by this Agreement and to that end it is agreed, should a controversy, dispute or disagreement adse dudng the pedod of this Agreement, there shall be no cessation or stoppage of work authorized by the Union, and the Union will do its utmost to see that work is continued in a normal and orderly way and said controversy, dispute or disagreement shall be adjusted in the following manner. Grievances shall be limited to disputes arising as to the meaning or application of any of the specific provisions set forth in this Agreement. The grievance shall be discussed with the employee's immediate supervisor and/or manager within five (5) days of the known occurrence giving rise to the grievance, if the grievance is not resolved at this meeting, the grievant must submit a signed grievance through the Local Union to the Employer within ten (10) working days from the date of the occurrence, so as to be received by the Employer at their business office not later than 5 P.M. on the eleventh (11th) working day, excluding Saturdays, Sundays, and Holidays following the eVent giving rise to the grievance. Upon timely receipt by the Employer of the written grievance the parties hereto shall meet within six (6) working days and exercise every amicable means to settle or adjust said grievance. In the event of failure to accomplish a settlement or adjustment of such grievance by the above procedures within ten (10) working days, excluding Saturdays, Sundays and Holidays after the date the grievance is timely received in writing by the Employer, the matter may be referred to arbitration by written notice from the Union or the employee to the Employer. The parties shall try to agree upon an arbitrator no later than five (5) working days from the date such written notice is received by either of them. If the parties are unable to reach agreement as to an arbitrator acceptable to both parties, then upon request by either party, the Federal Mediation and Conciliation Service shall furnish a list of seven (7) arbitrators. The parties hereto shall select an arbitrator from the list submitted by the Federal Mediation and Conciliation Service by alternate Striking of names until one name remains. The party making the first deletion shall be determined by toss of coin. The parties may by mutual agreement use expedited arbitration. Such procedure is attached as Exhibit "A". The arbitrator shall have no power to ait~r, amend, change add to or subtract from any of the terms of this Agreement, but shall determine only whether or not there has been a violation of the Agreement in respect of alleged grievance and remedy. The decision of the arbitrator shall be based solely upon the evidence and arguments presented to him by the respective parties in the presence of each other. The decision of the arbitrator within the limits herein prescribed shall be final and binding upon the Employer, the Union and the employees affected, subject to judicial review. The costs of the arbitrator shall be shared equally by the Employer and the Union. Either the arbitrator, the Employer, the Union or the employee involved may call any employee covered by .this Agreement or not as a witness in any proceeding before the arbitrator, and the Employer agrees to release said witness from work if he is on duty. If an empioyee witness is called by :he Employer, the Employer will reimburse him for regularly scheduled work time lost (up to a !I maximum of eight (8) hours at the employee's regular straight time hourly rate of pay per day); if called by the Union, the Union shall reimburse the employee for said time lost; if called by the arbitrator, the Employer and the Union will split (half and half alike) the cost of said time lost. Wage structures as set forth in this Agreement, shall not be subject to arbitration. Grievances on the part of either party which are not timely in accordance with any of the conditions set forth in procedures of this Article shall be waived for all purposes. Time limits as set forth above may be extended by mutual consent of the parties. ARTICLE VIII RIGHTS OF MANAGEMENT SECTION 1. Except as expressly and specifically limited by a provision of this Agreement, the Employer has and shall retain the full dghts of the management and the direction of its business and operations; to adopt, and from time to time modify, rescind or change reasonable work and safety rules and regulations, so long as such rules are not inconsistent with an express provision of this Agreement, and to enforce such rules; to select the persons it shall hire; and to select and assign such duties as it deems appropriate to supervisory and other categories of employees excluded from this Agreement. SECTION 2. The failure of the Employer to exercise any function, power or dght in a particular manner shall not be deemed a waiver of the right of the employer. SECTION 3. It is further agreed that the dghts specified herein may not be impaired or mo. dified by the arbitrator or arbitration, even though the parties may agree to arbitrate the issue involved. 13 ARTICLE IX PROTECTION OF RIGHTS SECTION 1. It shall not be a violation of this Agreement, and it shall not be cause for discharge or disciplinary action in the event an employee refuses to enter upon any property involved in a lawful pdmary labor dispute, or refuses to go through or work behind any lawful primary picket line, including the lawful primary picket line of the Union party to this Agreement, and including lawful pdmary picket line at the Employer's place of business. SECTION 2. It shall not be a violation of this Agreement and it shall not be a cause for discharge or disciplinary action if an employee refuses to perform any service which his Employer undertakes to perform as an ally of an Employer or persons whose employees are on lawful stdke and which service, but for such lawful stdke, would be performed by the employees of the Employer of the persons on lawful strike. SECTION 3. In the event any governmental agency requires the Employer to perform services in places where there is a lawful or unlawful pdmary picket line, because of sanitation, health or fire hazards, the employees covered by this Agreement shall be required to perform said services and the provisions of Section 1 and Section 2 of this Article shall not apply. In such an event the Employer must notify the Union of the Governmental agency, which has made the order requiring such services be rendered. ARTICLE X LEAVE OF ABSENCE. SECTION 1. Any employee desidng leave of absence from his employment shall secure written permission from the Employer with a copy to be sent to the Union. The maximum leave of absence shall be for ninety (90) days and may be extended for like pedods. SECTION 2. Dudng the pedod of absence, the employee shall not engage in gainful empioymen-t, including self-employment, unless mutually agreed to between the Employer and the employee. Failure to comply with this provision shall result in immediate discharge. Inability to work because of proven non-job related illness or non-job related injury shall not result in loss of seniority rights provided the period of absence does not exceed three (3) months. SECTION 3... A Union member'elected or appointed to serve as a paid Union official shall be granted a leave of absence dudng the pedod of such employment, without discrimination or loss of seniority and without pay. The maximum leave of absence for this section shall be for ninety (90) days and may be extended for like pedods. 15 ARTICLE Xl SUBCONTRACTING No municipal service trash hauling work covered by this Agreement shall be subcontracted or assigned to any subcontractor, contractor, persons or entity, except in the event of an emergency and no current employee is displaced from .such work. In subcontracting such work the Employer must notify the Union at its earliest opportunity and advise the Union of the nature of the emergency and the identity of the subcontractor. The provision shall in no way alter the Employer's past practice of using subcontractors or independents on construction sites. In the event the Employer uses either subcontractors or independents, suCh individuals shall pay directly to the Union a service fee which shall be equivalent to the monthly dues which the Union uniformly Charges all members. Such charge shall amount to 4/10 of one percent (0.4%) for each week of work performed. The Employer will remit such Charges each month directly to the local union. Further, the parties agree the use of such subcontractors/independents shall not result in the layoff of existing semi truck ddvers. The parties agree to review the use of subcontractors/independents each year, if warranted. 16 ARTICLE Xll SUCCESSORS AND ASSIGNS The Employer agrees to give notice of the existence of this Agreement to any purchaser, transferee, lessee or assignee and to notify the Union in writing of the name and address of such afore-referenced entity pdor to the effective date of such action. 17 ARTICLE Xlll PROHIBITION OF STRIKES AND LOCKOUTS, Dudng the term of this Agreement, or any extension of this Agreement, the Employer shall not lock out the employees covered by this Agreement, and no strike shall be caused or sanctioned by the Union or its members, and neither the Union, nor any of its members or representatives, nor any employee, shall call, cause, authorize, ratify or engage in any sit down, sick-out, stay-in or other stdke, picketing, walkout, slowdown or work stoppage, or any other interference with production or stoppage of work. The provisions of this Article shall not be deemed to in any way abddge the dghts granted to employees in Article IX of this Agreement. 18 ARTICLE XlV HOLIDAYS SECTION 1. Holidays as set forth herein, are recognized by the Employer as paid holidays, regardless of the day of the week on which the holiday falls, and will be granted to all eligible regular full time employees who are covered by this Agreement. Holiday pay shall be paid to all eligible regular full time employees covered by this Agreement who have fulfilled all of the following conditions. . Be a regular full time employee who has been on the payroll of the Employer for a period of not less than one hundred and fifty (150) days continuous calendar days. The exception being that if the employee was hired by the employer within thirty (30) days of termination of his or her employment of at least twelve (12) continuous months with another Local Union 396 employer, as verified by his or her employment application, engaged in the solid waste collection industry, in which case the pedod shall only be thirty (30) continuous calendar days. 2. If scheduled to work the holiday, must work the holiday as scheduled. 3. Must work the full assigned scheduled work day immediately preceding the holiday. 4. Must work the full assigned Scheduled work day immediately following the holiday. SECTION 2. When hO.WOrk is performed on a recognized holiday as set forth herein, eligible regular full time employees covered by this Agreement shall be paid for such recognized holidays on the basis of eight (8) hours pay at the eligible regular full time employee's regular straight time hourly rate of pay. Employees covered by this Agreement who are required to work any of the holidays recognized by the Employer shall receive in addition to their regular holiday pay a guarantee of eight (8) hours pay at their regular straight time hourly rate of pay. Regular full time employees covered by this Agreement who are laid off or terminated by the Employer less than seven (7) calendar days prior to a holiday recognized by the Employer shall be paid for that holiday at 'the time of layoff or termination. HOLIDAYS RECOGNIZED BY THE EMPLOYER: New Year's Day Memorial Day Fourth of July Labor Day Thanksgiving Day Christmas Day Two (2) Floating Holidays Effective Upon Contract Acceptance: Two (2) Personal Days. Effective One (1') Year Later: Four (4) Personal Days. The floating holidays and personat days shall not be applicaDle to non-municipal drivers. t9 SECTION 3. Holidays recognized by the Employer, which fall on a regular work day shall be considered as time worked for the purpose of computing weekly overtime and the weekly forty (40) hours of work guarantee. Holidays recognized by the Employer which fall on a non-work day shall not be considered as time worked for the purpose of computing weekly overtime or the weekly forty (40) hours of work guarantee. SECTION 4. VVhen a holiday falls on a Sunday, the Monday immediately following the holiday shall be observed as the holiday. SECTION 5. When a holiday recognized by the Employer falls dudng an employee's vacation pedod the employee shall receiVe one (1) additional day of paid vacation or pay in lieu thereof eight (8) hours at the eligible employee's regular straight time houdy rate of pay. Any "in lieu" rate of pay shall be the rate said employee was being paid at the time of the employee's anniversary date of hire. SECTION 6. Eligible employees shall select their Floating Holidays and Personal Days dudng the vacation selection process. Any employee desidng to take a Floating Holiday or Personal Day not previously selected in the vacation selection process must provide the Employer with at least one week's advance notice in writing. The Employer may limit at its discretion the number of employees utilizing at any one time a Floating Holiday or Personal Day. In the event an employee elects not to take a Floating Holiday they will receive payment on their anniversary date. In the event an employee elects not to take all of their Personal Days dudng the year, they shall receive payment for the unused days on the 2nd payroll period in December. 20 ARTICLE XV VACATION SECTION 1. Ail regular full time employees covered by this Agreement who have completed one (1) continuous year of service with the Employer shall be eligible for one (1) week of vacation with pay (forty (40) hours at the employee's regular straight time hourly rate of pay at the time of the employee's anniversary date of hire). All regular full time employees covered by this Agreement who have completed three (3) years of continuous service with the Employer shall be eligible for two (2) weeks of vacation with pay (eighty (80) hours at the employee's regular straight time houdy rate of pay at the time of the employee's anniversary date of hire). All regular full time employees covered by this Agreement who have completed eight (8) years of continuous service with the Employer shall be eligible for three (3) weeks of vacation with pay (one hundred and twenty (120) hours at the employee's regular straight time hourly rate of pay at the time of the employee's anniversary date of hire). SECTION 2. Vacation selection shall take place from January 2nd thru January 31s~ of each year. Selection shall be taken in seniority order. Failure to select your: ~'~cation during the vacation selection time frame will result in the employee being passed by. Employees shall be granted time off once selection has been made, and vacation time shall not be canceled once selected. Employees that do not select their vacation during the vacation selection process, shall request their vacation after January 31st in writing, with the Employer granting such selection based on availability. SECTION 3. An eligible employee shall receive his vacation pay on the anniversary of his most recent date of hire. Vacation pay will not be paid at any other time unless such change is mutually agreed to between the Employer and the employee. SECTION 4. The Employer has the sole right to determine the number of employees who will be on vacation in any one week. SECT1ON 5. An employee who quits or wh° is discharged (except fOr proven theft, intoxication, drinking on the job, possession or the use or sale of alcoholic beverages or drugs while on the Employer's premises or on or in Employer owned or leased vehicles) before the completion of any full year of employment shall be eligible for a pro-rated vacation pay allowance upon severance of employment, computed upon the same formula he would have received had he completed such year of employment, provided, however, that upon termination of employment for any reasons, the terminated employee shall not be entitled to such pro-rated vacation pay until he has completed the first full nine (9) months of employment. For those eligible, pro-rated vacation pay shall be paid with the final check upon severance of employment. SECTION 6. Laid off employees, who are eligible to receive pro-rated vacation pay at the time of lay off, shall have the option of collecting accumulated pro-rated vacation pay for the portion of the employment year worked at the end of thirty (30) days following date of such iay off. Lay-off status of more than thirty (30) days duration shall not be counted in qualifying for future 21 vacation benefits should such laid off employee later be recalled and retumed to work within four (4) months of the date of such lay off. Ail time accumulated prior to date of lay-off shall be used in establishing qualification for future Vacation benefits. SECTION 7. All time lost from employment through sickness or injury which is job related, up to thirty (30) days in any one (1) year will be considered as time worked for the purpose of determining the length of continuous service for vacation eligibility. The time for computing the employee's continuous service with the Employer shall commence with the employee's most recent date of hire. ARTICLE XVI PENSION The Employer shall contribute as listed below to a maximum of 2,080 per year for each municipal service employee and construction semi-truck ddvers, effective upon the execution of the contract and after obtaining City approval, to the Teamsters Western Conference Plan: Upon execution and City approval: $0.50 per hour. During the employee probationary pedod, said contribution shall be 10¢ per hour. 23 ARTICLE XVll GROUP INSURANCE SECTION 1. The Employer reserves the right to select carders and plan administrator. Employer may change same during the contract term provided new plan(s) provide substantially comparable coverage. The plan(s) shall consist of Medical, Dental and Life Insurance. A copy of the summary plan description shall be furnished to the Employee and the Union. SECTION 2. The employee shall contribute the following toward cost of medical insurance: Employee Contribution Per Month Contribution HMO, PP0 Employee Only $50.00 No Cost Employee and Spouse $100.00 No Cost Employee and Family $150.00 No Cost · . The employee contributions listed above shai'l.be frozen for the term of this Agreement. The Employer shall assume any future cost increases to maintain said coverage. SECTION 3. An employee shall be eligible for coverage under the above plans on the first of the month following completion of their probationary period. Thereafter, to be covered an employee must work or be paid at least 120 hours in a month. 24 ARTICLE XVIII DRIVE AUTHORIZATION AND DEDUCTION The Employer agrees to deduct from the paycheck of all employees covered by this Agreement voluntary contributions to DRIVE. DRIVE shall notify the Employer of'the amounts designated by each contributing employee that are to be deducted from his/her paycheck on a weekly basis for all weeks worked. The phrase "weeks worked" excludes any week other than a week in which an employee earned a wage. The Employer shall transmit to DRIVE National Headquarters on a monthly basis, in one check the total amount deducted along with the name of each employee on whose behalf a deduction is made, the employee's social secudty number and the amount deducted from the employee's paycheck. The International Brotherhood of Teamsters shall reimburse the Employer annually for the Employer's actual cost for the expenses incurred in administering the weekly Payroll Deduction Plan. 25 ARTICLE XIX VACATED OR NEWLY ESTABUSHED ROUTES SECTION 1. Before filling a vacant position other than on a temporary basis, the Employer will post at each time clock location for five (5) days, and the employee who timely bids for such position in the following manner, the position will be awarded as follows; provided, however, that the Employer shall be the sole judge of an employee's qualifications for a particular classifications: (1.) to the most senior qualified ddver within the specific classification where the vacancy exists; if there are no qualified bidders, then the position will be awarded to (2.) the most senior qualified bidder within the same Department; if there are no qualified bidders, then the position will be awarded to (3.) the most senior qualified bidder within any Department. Should there be no qualified employees bidding for such vacancies, the Employer will fill the position. Employees who are successful bidders, and are awarded such vacant positions, will be restricted from bidding for any other positions for a 'pedod of twelve (12) months. Under no circumstance will the Employer be obligated to provide for job bidding in excess of the odginal opening and one additional opening (2 deep). SECTION 2. The Employer will make a reasonable effort to provide training for employees seeking to be certified to perform work other than their normal and customary job in their same driving classification (e.g. Class B trains for another Class B position). Such training will be done on the employee's time and without pay. 26 ARTICLE XX DRIVERS LICENSE SECTION !... All ddvers must be in possession of a valid Califomia Driver's License of the proper class needed to perform the driver's job duties. SECTION 2. The driver agrees to be in compliance with any and all regulations of the U.S. Department of Transportation, California Highway Patrol, and the California Department of Transportation regarding hours, medical conditions, and required license. SECTION 3. A driver may be discharged if the Company's insurance agency is unable to insure said employee. 27 ARTICLE XX! PHYSICAL EXAMINATIONS AND TESTING FOR ALCOHOL AND CONTROLLED SUBSTANCE SECTION 1. REQUIRED TESTING. The Employer and the union agree to comply with all federal, state, and local laws and regulations regarding alcohol and drug screening, including random and other testing mandated by the U.S. Department of Transportation (DOT). Refusal immediately to submit to such test shall result in immediate discharge. SECTION 2. REASONABLE SUSPICION. Upon reasonable suspicion that an employee is under the influence of or impaired by alcohol or any controlled substance, the Employer in its discretion may require the employee to immediately submit to a screening test utilizing at least those minimum standards established under the DOT'S regulations regarding (a) the substances tested for (e.g., alcohol and controlled substances), '(b) the threshold levels for a "positive" reading on such tests, (c) testing methodology, (d) chain of custody procedures, and (e) medical review officer utilization and qualifications. Refusal immediately to submit to such test shall result in immediate discharge. In addition, except as set forth below in Section 3, a positive test will result in immediate discharge. SECTION 3. DRUG AND ALCOHOL REHABILITATION. The Employer shall reasonably accommodate any employee who wishes to voluntarily enter and participate in an alcohol or drug rehabilitation program, provided that this reasonable accommodation does not impose an undue hardship on the Employer. Nothing in this Article XXI shall be construed to prohibit the Employer from discharging, an employee who, because of the employee's current use of alcohol or drugs, is un'able tO perform his duties, or cannot perform the duties in a manner which would not endanger his health or safety or the health and safety of others, or who has violated the provisions of Article VI. 28 ARTICLE XXll I=X'I'RA CONTRACT AGREEMENTS The Employer agrees not to enter into any agreement or contract with their employees individually or Collectively, which in any way conflicts with the terms and provisions of this Agreement. Any such agreement shall be null in void. 29 ARTiCLI= XXIII SICK LEAVE SECTION 1. It is agreed that each eligible employee is entitled to the maximum one (1) day sick leave pay with the first year of the Agreement. Thereafter, eligible employee(s) shall earn one (1) additional day of sick leave dudng each. year of the Contract up to a maximum of five (5) days. In the event the employee does not use his five (5) days sick leave, forty (40) hours of straight time (at his current rate) or any portion thereof, he shall be entitled to the pay for such unused portion, and said sum shall be paid to him no later than January 10th of the next calendar year. . .. SECTION 2. After six (6) months of continuous employment an employee shall be eligible to earn, and shall earn sick leave each calendar year at the rate set forth in Section 1, hereof. SECTION 3. The "Six (6) month (etc.)" requirement is an eligibility requirement. An employee who has satisfied such requirement shall be retroactively credited on a pro-rata basis for whatever portion of such six (6) months falls within the calendar year'~uch requirement is met and shall be eligible thereafter to draw upon sick leave so credited (and whatever additional sick leave subsequently earned, and unused, if any, that' calendar year). An eligible employee who is terminated shall receive pay for ali sick leave unused at the time of termination. SECTION 4. The Employer also agrees to add one (1) additional day of sick leave to all employees who for a period of one (1) Year have no chargeable accidents, property damage, worker's compensation injuries which require a full day of absence. 3O ARTICLE XXIV TERM OF AGREEMENT THIS AGREEMENT shall remain in full force and effect from execution of this Agreement to and including September 30, 2006 and from year to year thereafter, unless either party gives written notice of at least sixty (60) days prior or the expiration date, of a desire to modify or terminate this Agreement. IN WITNESS WHEREOF, the parties hereto have set their hands and seals this ~U. Lq ~_t~. ~_~o~ ,2002. PACKAGE AND GENERAL UTILITY DRIVERS LOCAL UNION 396 Danny J. Bruno By: FEDERAL DISPOSAL SERVICE/ SHUBIN SERVICES President By: W. C. Thomas Labor Counsel 31 APPENDIX "A" EXPEDITED GRIEVANCE AND ARBITRATION PROCEDURES It is the intention of both the Local Union and the Employer that the grievant receive a hearing as soon as possible but no longer than thirty (30) days from the time of the filing of the written grievance unless otherwise mutually agreed to. The Union reserves the dght to file for arbitration not later than thirty (30) working days from the filing of the written grievance. The Arbitrator shall render a short, form decision within three (3) working days of such headng. The Arbitrator shall have no power to alter, amend, change, add to or subtract from any of the terms of thisAgreement, but shall determine only whether or not there has been a violation of the Agreement in respect of alleged grievance and remedy. 'E'~'ch party shall bear its own expense in presenting the case to the Arbitrator. The expense of the Arbitrator and of the reporter, if any, shall be divided between the parties hereto. The Employer agrees to pay a sum equal to but no greater than one-half of said expense, and the Union agrees to pay a sum equal to but not greater than one-half of said expense. Each side shall bear its own expense of producing witnesses, experts, interpreters and the like. FDS Proposed Agreement .Ianztarx' " JUL-_~2-2002 I'101,1 09:42. PJ'I .:'~X 1't0. '~1~ 543 ~...07 ? o:z APPENDIX "B" To the extent the wages listed below represent a wage increase beyond that which the employees are presently paid, said .increase shall be subject to the approval of the City. of Tusfin before being implemented. In the event the Employer's endeavors to obtain the approval of the City of Tustin are unsuccessful, the wage increases listed below shall not be applicable. The wage progression shall be horizontal from start to 30 months which is the job rate. Classification; ~ I After City " i I Approval Municipal Service Trash Driver (hourly); , 10.01-02 ~ 30 mos. 13.90 14.35 ' 24 m~s. 13.80 14.25 18 mos. 13.65 13.50 i 12 mos. mos. 13.25 Start 13.00 Heloers fhourly): I 30 14.10 ] 18 13.95 13,70 13.45 10-01-03 14.70 10-01-05 14.80 15.25 18.00 15.15 15.90 14.55 Mechanics (hourly): 14.40 14.15 15.00 15.75 13.90 14.85 15.80 14.60 15.35 14.35 15.10 mas. 12.85 13.30 13.75 14.20 14.'~5 J 24 mcs. 12.53 12.98 13,43 13.88 14.53 mos. 12.21 12.56 13.'11 13.56 14.31 ~ 12 n~os. I 11.89 mcs. 11.57 Start 11.25 Yard Supped (hourly): J 30 mcs. 14.64 14,32 14.00 24 mos. 18 mcs. 12.34 12.02 11,70 15.,39 14.77 14,45 14,13 13.81 13.49 8.45 8.35 8.25 8.15 8.C5 12.79 mos. 13.68 13.36 13.04 8 00 7.90 I 8 mcs. Start 12.47 12.15 15.54 15.22 44.90 14,5B 14.28 13.94 8.90 8.80 8.76 B.60 8.50 13.99 ~ 30 mos. J 24 mos. I 18mcs. I 12mos. 6 mcs. t 7.80 7.70 !3.24 ! 4 ,2.92 ~ 13.57 !2.60 ~ 13.35 15.99 i 16.7z. 15 67 i 16.42 15.35! 16.10 15.06 15.78 !4.71 15.46 14.39 14.14 9.35 10.10 9.25 lC.CO 9.15 ' 9,90 I 9.05~ 9.80 8.95~ 9.70 7.60 Start 7.50 7.95 8.40 , 8.85 , 9.60 jConstruction Semi-Truck I Driver (Billing Hours): ~'~"'~ wage rates listed are applicable to cnly a~ual hours billed to the irespe~ive customer. Such wage rates shall not De subjec: to the approval.process listed above. I 30 mos. I 24 mos. mos. mos. mos. Start ' I 13.00 131~,"~-I 13.79 42.90 13.29! 13.59 t2.80 13.19! 13.59 12.70 13.09: 12.60 12.99 ~ 13.33; 14.20 14.10 14.00 13.49 13.9O 1 12.50 12.89 ~ 13.2'3 ! 3.80 13.70 14,63! '14.53 1,~.33~ 14.23! 14.13 I Donald Shubin Pag~ 4. 7/25/2002 Attachment 2 -Alternative 1- with Comm/Res/RO Labor Allocation Proposed Rates (Attachment 3) to the Franchise Agreement with' Exhibits 5A, 5B, & 5C Federal Disposal Service Proposed Ra~es Attachment Includes PPI and Corn/Res/R O Allocation of Labor Increase Residential Multi-Family and Commercia! Cart/Manual Gan Rztes Original Quantity Row Service Proposed of Monthly Annual Billings Monthly Rate Service Units Billings I Automated Cart $13.44 $ 8,773 $ 117,901 $ !,414,816 2 ManuaICan $8.11 $ 733 $ 5,941 $ 71,295 3 Total Cart/Can Billings $ 123,843 $ 1~486,112 Commercial and Multi-Family Bin R~d~s Pickups per Week Row Service 1 2 $ 4 5 6 4 2 Cubic Yams $39.65 $70.88' $i02.12 $133.34 $164.58 $195.81 5 3 Cubic Yards $44.59 $80.74 $116.91 $153.07 $189.23 $225.39 6 4 Cubic Yards $49.52 $90.61 $131.70 $172.79 $213.89 $254.99 Commercial and Multi-Family Bin Distribution ~ - Number of Bins Pickups per Week Row Service Total 't 2 3 4 5 6 , , 7 2 Cubic Yards 84 20 9 1 2 116 8 3 Cubic Yards 253 562 340 125 132 62 1,474 9 4 Cubic Yams 30 80 97 23 49 46 325 10 Total 367 662 446 148 182 110 1,915 Source: Waste Management, Inc. The City cJoes not assume any responsibilty for the accuracy of the reported information Commercial a~d Multi-Family Bin Billings 'Pickups per Week Row Container Total Size I 2 3 4 5 6 11 2 Cubic Yards $ 3,331 $ 1,418 $ 919 $ - $ 165 $ 392 $ 6,224 12 3 Cubic Yards 11,280 45,378 39,751 19,134 24,979 13,974 154,497 13 4 Cubic Yams 1,486 7,249 12,775 3,974 10,480 11,730 47~694 14 Total MonthlyBillings $ 161096 $ 54,045 $ 53,445 $ 23,109 $ 35~624 $ 26,095 $ 208~414 15 Total Annual Billings $ 193,157 $ 648,538 $ 641,343 $ 277,303 $ 427,486 $ 313,146 $ 2,500~972 Roll-Off Box Billings Row Description Billing Unit Units per Proposed Estimated Year Rate Annual Billings 16 Pull Charge # of Pulls 3,002 $97.84 $ 293~725 17 Disposal/Processing Charge # of Tons 13,407 $ 28 375,396 18 Total 669,121 Summary of Projected Annual Billings Proposed Base Period Increase 19 IResidential Multi-Family and Commercial Cart/Manual Can Billings $ :1,486;112 $ 1,346,124 9.4% 20 ICommemial and Multi-Family Bin Service Billings 2,500,972 2,240,916 10.4% 21 Roll-Off Box Billi,ngs 669,121 637,260 4.8% 22 Total Projected Annual Billings 4,656,205 4,224~3G0 9.3% CC: H:~FDS users\ed\Rate Adjustment Revised7/25/2002 Federal Disposal Service EXHIBIT SA (Proposed) Rate Adjustment - Single Family Customer Billed By the City on Tax Roll Includes PPI & Labor Step One: Determine disposal expense and service revenue as a percent of actual rate revenue Revenue Component Single Family Rate Revenue' ' less: Single Family Labor Expense Less: Single Family Refuse Disposal Expense Single Family Service Revenue Annual Amount {a} Group (3) $ 1,401,735 May/June 2002 Annualized $ 279,515 Tonnage Report $ 273,372 Percent of Ra~e Revenue 100.0% 19.9% 19.5% 848,848 60.6% Step Two: Calculate percentage change in adjustment factors Old New Percent Change Adj,_m_tment Factor Disposal Gate Fee per Ton Labor Increase Producer Price Index $ 22.00 $ 801,504.00 124.2 $ 22.00 $ 1,116,792.60 129.5 ,, Step Three: Calculate weighted percentage change in single family rates 0.0% 39.3% 4.3% Components of Actual Revenue Refuse Disposal Labor (Extraordinary) Service (PPI) Total Component Weight (b) 19.5% 19.9% 60.6% loo.o% Percent Change (C)o.o% I 39.3% I 4.3%I N/AI Weighted Ra~e Adj~b~ent 0.0% 7.8% 2.6%~ lO.4% Step Four: Apply weighted percentage change to single family rates Service Single Family-Automated Cart Manual Can Current Monthly Rate (d) Weighted Rate Adjusb-~ent Adjusted Moa~hly Ra[e $ 12.17 $ 7.34 lO.4% 10.4% $13.44 $8.11 (a) For the twelve months ending on the date six months prior to the effective date of the rate adjustment. For example, for the a rate adjustment effective July 1, 2002 the revenue used should be for the twelve months ending December 31, 2001 (b) From percent of revenue in Step One (c) From percent change in Step Two (d) The weighted rate adjustment applied to the total rate, including franchise fee portion of the rate (e) From weighted rate adjustment in Step Three CC: H:\FDS users~d~Rate adjustment formula Revised7/25/2002 Federal Disposal Service EXHIBIT 5B Includes PPI and Labor (Proposed) Rate Adjustment - Commemial Customer Billed By the Company (Except Rolloff) Step One: Deduct franchise fees from gross rate revenue Revenue Component (including Franchise Fees) Actual Gross Commercial and MFR Rate Revenue Groups (1,2,5 & 98) Actual Commercial and MFR Franchise Fees Quarterly Reports Actual Gross Commercial and' MFR Rate Revenue Net of Franchise Fees Annual Amount (a) I Percent of Rate Revenue Including Franchise Fees $ 2,384,865 ' 100.0% $ 60,564 2.5% $ 2,324,301 97.5% Step Two: Determine disposal expense and service revenue percentage of total actual rate revenue Annual Amount (a) Percent of Rate Revenue Net of Franchise Fees Revenue Component (net of Franchise Fees) Actual Commercial and MFR Bin revenue Net of Franchise Fees (b) Less: Actual Commercial and MFR Disposal Less: Labor A_nb__m_! Commercial and MFR Bin Service Revenue Groups (1,2, & 5 & 98) Tonnage Report May/June 2002 Annualized $ 2,324,301 $ 873,334 $ 592,427 $ 858,539 lOO.0%I 37.6%~ 25.5%~ Step Three: Calculated percentage change in adjustment factors I Adjustment Factor [ I~x~al Gate Fee per Ton $ $ ~Pro~_j~ Price Index $ Old 22.00 801,504.00 124.20 22.0O 1,116,792.60 129.50 Percent Change o.o%1 39.3%{ 4.3%J Step Fouc. Calculated weight percentage change in commercial and MFR Bin rates Components of Act,_m_l Revenue Refuse Disposal Service (PPI) Labor (Exraordinary) Total component Weight (c) 37.6% 36.9% 25.5% 100.0%~ Percent Change (d,o.o%,I 4.3%! 39.3%~ N/AI I Weighted Rate AdJuemmnt ] 0.0%{ 1.6%I 10.0%[ 11.6%1 Step Five: Applied weighted percentage change to commercial and MFR Bin rates Service I ea. 2 yard Bin once per week I ea. 2 yard Bin twice per week 1 ea. 2 yard Bin three times per week I ea. 2 yard Bin four times per week I ea. 2 yard Bin five times per week I ea. 2 yard Bin six times per week I ea. 3 yard Bin once per week I ea. 3 yard Bin twice per week 1 ea. 3 yard Bin three times per week 1 ea. 3 yard Bin four times per week I ea. 3 yard Bin five times per week I ea. 3 yard Bin six times per week I ea. 4 yard Bin once per week I ea. 4 yard Bin twice per week I ea. 4 yard Bin three times per week 1 ea. 4 yard Bin four times per week Currant Monthly Rate $ 35.53 $ 63.51 $ 91.50 $ 119.48 $ 147.47 $ 175.45 $ 39.95 $ 72.35 $ 104.76 $ 137.16 $ 169.56 $ 201.96 $ 44.37 $ 81.19 $ 118.01 $ 154.83 Weighted Rate Adjustment (f) 11.6% 11.6% 11.6% 11.6% 11.6% 11.6% 11.6% 11.6% 11.6% 11.6% 11.6% 11.6% 11.6%. 11.6% 11.6% 11.6% Adjusted Monthly Rate $39.65 $70.88 $102.12 $133.34 $164.58 $195.81 $44.59 $80.74 $116.91 $153.07 $189.23 $225.39 $49.52 $90.61 $131.70 $172.79 I ea. 4 yard Bin five times per week $ 191.65 11.6% 1 ea. 4 yard Bin six times per week $ 228.48 11.6% (a) For the twelve months ending on the date six months prior to the effective date of the rate adjustment. For example, for the a rate adjustment effective July 1, 2002 the revenue used should be for the twelve months ending December 31, 2001 (b) From Step One Above. Note that the basis for determining percent of revenue is different from that in Step One (c) From percent of revenue net franchise fees in Step Two (d) From percent change in Step Three (e) The weighted rate adjustment should be applied to the total rate, including franchise fee portion of the rate (f) From weighted rate in Step Four $213.89 $254.99 CC: H:~FDS usars~Kl~Rete adjustment formula~lTab]Exhibit 5B(Plan 2) Ext Revised 7/25/2002 Federal Disposal Service EXHIBIT 5C Includes PPI and Labor (Proposed) Rate Adjustment - Rolloff Step One: Deduct franchise fees from gross rate revenue Revenue Component (including Franchise Fees) Annual Amount (a) Percent of Rate Revenue Including Franchi~ Actual Gross Roll Off Rate Revenue $ 717,254 100.0% Actual Roll Off Franchise Fees Quarterly Reports 0.0%, Actual Gross Roll Off Rate Revenue Net of Franchise Fees $ 717,254 100.0% Step Two: Determine disposal expense and service revenue percentage of total actual rate revenue Revenue Component (net of Franchise Fees) Annual Amount (a) Percent of Rate Revenue Net of Franchise Fees Actual Roll Off Revenue Net of Franchise Fees (b) $ 717,254 100.0% Less: Actual Roll Off Disposal/MRF Tonnage Report - $ 287,852 40.1% Less: Labor May/June Annualized $ 196,590 27.4% Actual Roll Off Service Revenue $ 232,812 32.5% Step Three: Calculated percentage change in adjustment factors Adiustment Factor Old New Percent Change Disposal Gate Fee per Ton $ 22.00 $ 22.00 0.0% Labor $ 801,504.00 $ 1,116,792.60 39.3% Producer Price index $ 124.20 $ 129.50 4.3% Step Four: Calculated weight percentage change in Roll Off rates Components of Actual Revenue Component Weight (c) Percent Change (d) Weighted Rate Adjustment Refuse Disposal 40.1% 0.0% 0.0% Service (PPI) 32.5% 4.3% 1.4% Labor (Extraordinary) 27.4% 39.3% 10.8% Total 100.0% N/A 12.2% Step Five: Apply percentage change in PPI to Service.component and perctage change in Labor component Service Current Rates Rate Adjustment Adjusted Rate Standard Roll Off Charge per load $ 87.23 12.2% $97.84 Compactor Charge per load $ 155.00 12.2% $173.86 Delivery or Relocation Charge $ 75.00 12.2% $84.13 Temporary "Clean-Up" Bi ns $ 50.00 12.2%1 $56.08 Locking Bins $ 5.00 12.2% $5.61 On-Call Cleaning Services (in excess of 1x/yr) $ 35.00 12.2% $39.26 Bulk)/Item Pick up (in excess of 2x/)/r) $ 20.00 12.2% $22.43 ,Special Pick-up Auto Customer (in excess of 2x/yr) $ 5.00 12.2% $5.61 CC: H:\FDS users\ed\Rate adjustment formula Revised7/25/2002 Donald Shubin Page 5 7/25/2002 Attachment 3 -Alternative 2- with Commercial only Labor Allocation .. 'PropOsed Rates (Attachment 3) to-the Franchise Agreement with Exhibits- 5 A,. 5 B, & 5 C Federal Disposal Service Includes PPI and Commercial Only Labor Distnbution Proposed Rates Attachment 3 Residential Multi-Family and Commercial Cart/Manual Can Rates Ong~nal Quantity Row Service Proposed of Monthly Annual Billings Monthly Rate Service Units Billings 1 Automated Carl $12.59 $ 8,773 $ 110.435 $ 1.325.220 2 Manual Can $7.59 $ 733 $ 5,565 $ 66.780 3 Total Cart/Can Billings $ 116.000 $ 1,392.000 Commercial and Multi-Family Bin Rates Pickups per Week Row Service I 2 3 4 5 6 4 2 Cubic Yams $41.48 $74.14 $106.82 · $139.48 $172.16 $204.82 5 3 Cubic Yards $46.64 $64.46 $122.30 $160.12 $197.95 $235.77 6 4 Cubic Yams $51.80 $94.78 $137.77 $180.75 $223.73 $266.73 Commercial and Multi-Family Bin Distribution Matrix - Number of Bins Pickups per Week Row Service Total 1 2 3 4 5 6 7 2 Cubic Yams 84 20 9 ! 2 116 8 3 CuDIc Yams 253 562 340 125 132 52 1.474 90 4 Cubic Yards . 30 80 · · · 9'~' 23 49 46 325 Total 367 662 446 148 182 110 1.915 Source: Waste Management. Inc. The City does not assume any responsibilty for the accuracy of the reDortecl ,nformation Commercial and Multi-Family Bin Billings Pickups per Week Row Container Total Size 1 2 3 4 5 6 11 2CubicYams $ 3.464 $ 1.483 $ 961 $ $ 172 $ 410 $ 6.510 12 3 Cubic Yams 11.799 47.468 41,581 20.015 26.129 14.618 161.611 13 4 Cubic Yards 1.55~ 7.583 13.363 4.157 10.963 12.270 49.890 14 Total Monthly Billinc~s $ 16.838 $ 56.533 $ 55.906 $ 24.173 $ 37.264 $ 27.297 S 218.011 15 Total Annual Billincjs $ 202.051 $ 678.399 $ 670.873 $ 290.071 $ 447.169 $ 327.564 $ 2.616.128 Roll-Off Box Billings Row Description Billing Unit Units per Proposed Estimated Year Rate Annual Billin(~ s 16 Pull Charge # of Pulls 3.002 $ 90.95 $ 273.039 17 D~sl~osal/Processlng Charge # of Tons 13.407 $ 28 375.396 18 Total 16.409 119 648.,~ 35 Summary of Projected Annual Billinqs FroDosecl Base Per~ocl Ir~cre~se 19 Res~denhal Mult~-Fam!ly and Commercial CarlJManual Can B~ihngs S 1.392.000 $ ~.346.124 3.3% 20 Commercial and Multi-Family Bm Service B~ll~ngs 2.616.128 2.240.916 14.$% 21 Roll-Off Box Billings 648.435 637.260 1.7% · 22 Total Projected Annual B~lhncjs 4.656.563 4.224.300 9.3% CC: H:\FDS users\ecl\Rate AClluslment N~ev,sedT;25, 2002 Federal Disposal Service EXHIBIT 5A Includes only PPI (Proposed) Rate Adjustment - Customer Billed By the City on Tax Roll step one: Determine disposal expense and service revenue as a percent of actual rate revenue Revenue Component Annual Amount Ia) Percent of Rate Revenue Single Family Rate Revenue Group (3) $ 1.401,735 100.0% Less: Single Family Refuse Disposal Expense Tonnage Report $ 273,372 19.5% Single Family Service Revenue $ 1,128,363 80.5% Step Two: Calculate percentage change in adjustmer~t factors Old New Percent Change AdJustment Factor Disposal Gate Fee per Ton Producer Pdce Index 124.2 129.5 4.3% Step Three: Calculate weighted percentage change in single family rates Components of Actual Revenue Refuse Disposal Service Total Component Weight (b) I 19.5%I 80.5%I 100.0%1 Step Four: Apply weighted percentage change to single family rates Percent Change {c)0.0% 4.3% N/A Weighted Rate Adjustment 0.0% 3.4% 3.4% Service' Single Family-Automated Cart Manual Can Current Monthly Rate (d) $ 12.17 $ 7.34 Weighted R~te~ AdjustmentI · . . 3.4%] Adjusted Monthly Rate $12.59 $7.59 (a) For the twelve months ending on the date six months prior to the'effective date of the rate adjustment. For example, for the a rate adjustment effective July 1, 2002 the revenue used should be for the twelve months ending December 31, 2001 (b) From percent of revenue in Step One (c) From percent change in Step Two ._ (d) The weighted rate adjustment applied to the total rate. including franchise fee portion of the rate (e) From weighted rate adjustment in Step Three CC: H:\FDS users\ed\Rate adjustment formula Revised7/25/2002 Federal Disposal Service EXHIBIT 5B Includes PPI and Labor (Proposed) Rate Adjustment - Commercial Customers Billed By the company (Except Rolloff) Slep One: Deduct franchise fees from gross rate revenue Revenue Component (including Franchise Fees) Actual Gross Commercial and MFR Rate Revenue Groups (1,2,5 & 98) Actual Commercial and MFR Franchise Fees Quarterly Reports Actual Gross Commercial and MFR Rate Revenue Net of Franchise Fees Annual Amount (a) $ 2,384,865 $ 60,564 $ 2,324,301 Step Two: Determine disposal expense anti service revenue percentage ol total actual rale revenue Percent of Rate Revenue ] Includinq Franchise Fees ! 100.0%I 2.5o/0I 97.5%1 Revenue Component (ne! of Franchise Fees) Actual Commercial and MFR Bin revenue Net of Franchise Fees (b) Less: Actual Commercial and MFR Disposal Less: Labor Actual Commercial and MFR Bin Service Revenue Groups (1,2, & 5 & 98) Tonnage Report Payroll Basis Annual Amount (a) $ 2,324,301 $ 873,334 $ 933,000 $ 517,967I Old New Percent of Rate Revenue Net of Franchise Fees 100.0°/o1 37.6%~ 40.1%l 22.3%/ Step Three: Calculated percentage change in adjustment factors Adjustment Factor Disposal Gate Fee per Ton $ Labor $ Producer Price index $ 22.00 801,504.00 124.20 $ 22.00 $ 1,116,792.60 $ 129.50 Percent Change 0'0%I 39.3%I 4.3%I Step Four: Calculated weight percentage change in commercial and MFR Bin rates Components of Actual Revenue Refuse Disposal Service (PPI) Labor (Extraordinary) Total I Component Weight {,c) I 37.6%I 22.3%I 40,1%! lOO,O%1 Step Five: Applied weighted percentage change to commercial and MFR Bin rates Percent Chan~le 4.3% 39.3% N/A Weighted Rate Adjustment ! 0.0% 1,0% 15.8% 16,7%} Service 1 ea. 2 yard Bin once per week 1 ea. 2 yard Bin twice per week 1 ea. 2 yard Bin three times per week 1 ea. 2 yard Bin four times per week 1 ea. 2 yard Bin five times per week 1 ea. 2 yard Bin six times per week 1 ea. 3 yard Bin once per week 1 ea. 3 yard Bin twice per week 1 ea. 3 yard Bin three times per week 1 ea. 3 yard Bin four times per week 1 ea. 3 yard Bin five times per week 1 ea. 3 yard Bin six times per week 1 ea. 4 yard Bin once per week 1 ea. 4 yard Bin twice per week 1 ea. 4 yard Bin three times per week 1 ea. 4 yard Bin four times per week 1 ea. 4 yard Bin five times per week Current Monthly Rate $ 35.53 $ 63.51 $ 91.50 $ 119.48 $ 147.47 $ 175.45 $ 39.95 $ 72.35 $ 104.76 $ 137.16 $ 169.56 $ 201.96 $ 44.37 $ 81.19 $ 118.01 $ 154.83 $ 191.65 Weighted Rate Adiustment (fl 16 7% 16.7% 16.7°/ 16.7°/ 16,7°/ 16.7°/ 16.7°/ 16.7°/ 16.7°/ 16.7°/ 16.77 16.7% 16.7% 16.7% 16.7% 16.7% 16.7% 16.7% ea. 4 yard Bin six times per week $ 228.48 (a) For the twelve months ending on the date six months prior to the effective date of the rate adjustment. For example, for adjustment effective July 1, 2002 the revenue used should be for the twelve months ending December 31. 2001 (b) From Step One Above. Note that the basis for determining percent of revenue is different from that in Step One (c) From percent of revenue net franchise fees in Step Two (d) From percent change in Step Three (e) The weighted rate adjustment should be applied to the total rate, including franchise fee portion of the rate (f) From weighted rate in Step Four Adjusted Monthly Rate $41.48 $74.14 $106.82 $139.48 $172.16 $204.82 $46.64 $84,46 $122.30 $160.12 $197.95 $235.77 $51.80 $94.78 $137.77 $180.75 $223.73 $266.73 the a rate CC: H:\FDS users\ed\Rate acljustmenl formula~,[TablExh~bit 5B(Plan 2)*Ext Revised[Date) Federal Disposal Service EXHIBIT 5C Includes only PPI (Proposed) Rate Adjustment - Roiloff Rates Step One: Calculate percentage change in Producer Price Index IProducer Price Index Adjustment Factor I $ 124.20 $ 129.50 4.3% Step Two: Apply percentage change in Producer Price Index to Service Portion of rolloff Rates Service Current Monthly Rate Adjustment Adjusted Rate Rate (a) Standard Rolloff charge per load (b) $ 87.23 4.3% $ 90.95 Compactor charge per load $ 155.00 4.3% $ 161.61 Delivery or relocation charge $ 75.00 4.3% $ 78.20 Temporary "Clean-Up" Bins $ 50.00 4.3% $ 52.13 Locking Bins $ 5.00 4,3% $ 5.21 On-Call Bin Cleaning Services (in excess of lx/yr) $ 35,00 4.3% $ 36.49 Bulky Item Pick up (in excess of 2x/yr) $ 20.00 4.3% $ 20.85 Special Pick (in excess of 2x/yr) Auto Cart Cust $ 5.00 4.3% $ 5.21 b) Excluding disposal. Disposal is billed at Contract rate of $28.00 per ton. · CC: H:\FDS users\ed\Rate adjustment formula Revesed [Date] Donald Shubin Page 6 7/25/2002 Attachment 4 Rate Survey (Revised) Tustin/OC EXH I BIT B STAFF RECOMMENDED RATE ADJUSTMENT Federal Disposal Service EXHIBIT 5A (Proposed) Rate Adjustment - Customer Billed By the City on Tax Roll Step One: Determine disposal expense and service revenue as a percent of actual rate revenue Revenue Component Single Family Rate Revenue Less: Single Family Refuse Disposal Expense Less: Single Family Equipment Depreciation Single Family Service Revenue Group (3) Tonnage Report Deprec. Schedule Annual Amount (aI $ 1,401,735 $ 273,372 $ 216,471 $ 1,128,363 Step Two: Calculate percentage change in adjustment factors Percent of Rate Revenue lOO.O% 19.5% 15.4% 65.1% J I Adjustment Factor Disposal Gate Fee per Ton Producer Price Index Old $ 22.00 124.2 New $ 22.00 129.5 Percent Chan~e 0.0%] 4.3%I Step Three: Calculate weighted percentage change in single family rates Components of Actual Revenue Refuse Disposal Service and Depreciation Total Component Wei~jht (b) J 19.5%I 80.5% J lOO.O%1 Percent Change 4.3% N/A Wei~lhted Rate Adjustment 0.0% 3.4% 3.4% Step Four: Apply weighted percentage change to single family rates Service Single Family-Automated Cart Manual Can Current Monthly Rate (d) $ 12.17 $ 7.34 Weighted Rate Adjustment 3.4% 3.4% Adjusted Monthly Rate $12.59 $7.59 (a) For the twelve months ending on the date six months prior to the effective date of the rate adjustment. For example, for the a rate adjustment effective July 1, 2002 the revenue used should be for the twelve months ending December 31, 2001 (b) From percent of revenue in Step One (c) From percent change in Step Two (d) The weighted rate adjustment applied to the total rate, including franchise fee portion of the rate (e) From weighted rate adjustment in Step Three Federal Disposal Service EXHIBIT 5B (Plan 1, w/PPI) (Proposed) Rate Adjustment - Customer Billed By the Company (Except Rolloff) Step One: Deduct franchise fees from gross rate revenue Revenue Component (including Franchise Fees) Annual Amount (a) Actual Gross Commercial and MFR Rate Revenue Groups (1,2,5 & 98) Actual Commercial and MFR Franchise Fees Quarterly Reports Actual Gross Commercial and MFR Rate Revenue Net of Franchise Fees $ 2,384,865 $ 60,564 $ 2,324,301 Percent of Rate Revenue Including Franchise Fees 100.0% 2.5% 97.5% Step Two: Determine disposal expense and service revenue percentage of total actual rate revenue Revenue Component (net of Franchise Fees) Actual Commercial and MFR Bin revenue Net of Franchise Fees (b) Less: Actual Commercial and MFR Bin Refuse Actual Commercial and MFR Bin Service Revenue Groups (1,2, & 5 & 98) Tonnage Report Annual Amount (a) 2,324,301 873,334 1,450,967 Percent of Rate Revenue Net of Franchise Fees 100.0% I 37.6%I 62.4%1 Step Three: Calculated percentage change in adjustment factors Adjustment Factor Disposal Gate Fee per Ton Producer Price Index I$ $ Old 22.00 124.20 New 22.00 129.50 Percent Change o.o%I 4.3%1 Step Four: Calculated weight percentage change in commercial and MFR Bin rates Components of Actual Revenue Refuse Disposal IService ITotal Percent Change (d)o.oo/ol Weighted Rate ~,U,mO..O.~oI 4.3°/oI 2.7%I N/AI 2.7%I I Component Weight (c) I 37.6%I 62.4%I lOO.O%1 Step Five: Applied weighted percentage change to commercial and MFR Bin rates Service ea. 2 yard Bin once per week ea. 2 yard Bin twice per week ea. 2 yard Bin three times per week ea. 2 yard Bin four times per week ea. 2 yard Bin five times per week ea. 2 yard Bin six times per week ea. 3 yard Bin once per week ea. 3 yard Bin twice per week ea. 3 yard Bin three times per week ea. 3 yard Bin four times per week ea. 3 yard Bin five times per week ea. 3 yard Bin six times per week ea. 4 yard Bin once per week ea. 4 yard Bin twice per week ea. 4 yard Bin three times per week ea. 4 yard Bin four times per week ea. 4 yard Bin five times per week Current Monthly Rate $ 35.53 $ 63.51 $ 91.50 $ 119.48 $ 147.47 $ 175.45 $ 39.95 $ 72.35 $ 104.76 $ 137.16 $ 169.56 $ 201.96 $ 44.37 $ 81.19 $ 118.01 $ 154.83 $ 191.65 Weighted Rate Adjustment (f) 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% Adjusted Monthly Rate $36.48 $65.20 $93.94 $122.66 $151.40 $180.12 $41.01 $74.28 $107.55 $140.81 $174.08 $2O7.34 $45.55 $83.35 $121.15 $158.95 $196.76 1 ea. 4 yard Bin six times per week $ 228.48 2.7% (a) For the twelve months ending on the date six months prior to the effective date of the rate adjustment. For example, for adjustment effective July 1, 2002 the revenue used should be for the twelve months ending December 31,2001 (b) From Step One Above. Note that the basis for determining percent of revenue is different from that in Step One (c) From percent of revenue net franchise fees in Step Two (d) From percent change in Step Three (e) The weighted rate adjustment should be applied to the total rate, including franchise fee portion of the rate (f) From weighted rate in Step Four the a rate $234.57 Federal Disposal Service EXHIBIT 5C Example Rate Adjustment - Rolloff Rates Step One: Calculate percentage change in Producer Price Index Adjustment Factor Producer Price Index $ 124.20 $ 129.50 4.3% Step Two: Apply percentage change in Producer Price Index to Service Portion of rolloff rates Service Current Monthly Rate Adjustment Adjusted Rate Rate (a) Standard Rolloff charge per load (b) $ 87.23 4.3% $ 90.95 Compactor charge per load $ 155.00 4.3% $ 161.61 Delivery or relocation charge $ 75.00 4.3% $ 78.20 Temporary"Clean-Up"Bins $ 50.00 4.3% $ 52..13 Locking Bins $ 5.00 4.3% $ 5.21 On-Call Bin Cleaning Services (in excess of lx/yr) $ 35.00 4.3% $ 36.49 Bulky Item Pick up (in excess of 2x/yr) $ 20.00 4.3% $ 20.85 Special Pick lin excess of 2x/yr,) Auto Cart Cust $ 5.00 4.3% $ 5.21 e) Percent change in PPI f) Excluding disposal. Disposal is billed at actual cost based on the gate rate per ton at the Orange County Landfills multiplied by the number of tons. Federal Disposal Service Proposed Rates Residential Multi-Family and Commercial CartJManual Can Rate-~ Estimated Row Service Proposed Existing Monthly Annual Billings Monthly Rate Service Units Billings 1 Automated Cart $12.59 $ 9,173 $ 115,470 $ 1,385,642 2 ManuaICan $7.59 $ 733 $ 5,565 $ 66,780 3 Total Cart/Can Billings $ 121,035 $ 1,452,423 Commercial and Multi-Family Bin Rates Pickups per Week Row Service 1 2 3 4 5 6 4 2 Cubic Yards $36.48 $65.20 $93.94 $122.66 $151.40 $180.12 5 3 Cubic Yards $41.01 $74.28 $107.55 $140.81 $174.08 $207.34 6 4 Cubic Yards $45.55 $83.35 $121.15 $158.95 $196.76 $234.57 Commercial and Multi-Family Bin Distribution Matrix - Number of Bin,= Pickups per Week Row Service Total 1 2 3 4 5 6 7 2 Cubic Yards 67 15 14 2 98 8 3 Cubic Yards 236 470 440 105 103 48 1,402 9 4 Cubic Yards 23 127 140 32 42 38 402 10 Total 326 612 594 137 147 86 1,902 Source: Waste Management, Inc. The City does not assume any responsibiltv for the accuracv of the reoorted inforrnati~3n Commercial and Multi-Family Bin Billings Pickups per Week Row Container Total Size 1 2 3 4 5 6 11 2 Cubic Yards $ 2,444 $ 978 $ 1,315 $ $ 303 $ - $ 5,040 12 3 Cubic Yards 9,679 34,910 47,322 14,785 17,930 9,952 1 34,580 13 4 Cubic Yards 1,048 10,586 16,962 5,087 8,264 8,914 50,859 14 Total Monthly Billings $ 13,171 $ 46,474 $ 65,599 $ 19,872 $ 26,496 $ 18,866 $ 190,478 15 TotalAnnual Billings $ 158,052 $ 557,690 $ 787,187 $ 238,464 $ 317,957 $ 226,390 $ 2,285,741 Roll-Off Box Billin~ls Row Description Billing Unit Units per Proposed Estimated Year Rate Annual Billings 16 Pull Charge # of Pulls 3,002 $ 90.95 $ 273,039 17 Disposal/Processing Charge # of Tons 13,407 $ 28 375,396 18 Total 16,409 119 648,435 Summary of Prolected Annual Billin~ls 19 Residential Multi-Family and Commercial CartJManual Can Billings $ 1,452,423 20 Commercial and Multi-Family Bin Service Billings 2,285,741 21 Roll-Off Box Billings 648,435 22 Total Projected Annual Billings 4,386,598 Special Services Row Description Rate 23 Temporary Bin Services - Per Pull, plus $5 per day over 7 days $ 52.13 24 Locking Bin - Cost per bin per month $ 5.21 25 Bin Cleaning (in excess of one bin cleaning per year) - Each $ 36.49 26 Additional Bulky Waste Pickup (in excess of 2 per year) - Each $ 20.85 27 Additional Special Pickup for Automated Cart Customers (in excess of 2 per year} - Each $ 5.21 * These unit estimates will be used for purposes of calculating rate revenue and determining the proposer's overall cost. It assumes that all single family, duplex, and triplex units will receive automated cart service. EXHIBIT C RATE SURVEY Commercial Solid Waste Service Rate Comparison County of Orange 1 x Week P/U - 3-yard Bin Tustin Tustin Tustin Lake Forrest San Juan Capistrano Laguna Hills Irvine Laguna Niguel Dana Point Westminister Santa Ana Orange Los Alamitos Rancho Santa Margarita Laguna Beach San Clemente Brea Buena Park La Palma La Habra Yorba Linda Placentia Stanton Villa Park Garden Grove Huntington Beach Anaheim Seal Beach Fountain Valley Fullerton Cypress Newport Beach Costa Mesa Laguna Woods Existing Rate Staff Recommended Rate FDS Proposed Rate I nternet(wastemanagement, com) Mignon Mignon I nternet(wastema n agement, com) Mignon Mignon Sandra I nternet(wastemanagement.com) Lisa Matert Tony Customer Service Christine I nternet(wastema nagement, com) Mignon Adrianna Melissa Debbie I nternet(wastema n agement, com) Adrianna Tony Customer Service Adrianna Customer Service Sandra Dora Customer Service Kathy Customer Service Kathy $39.95 Federal Disposal $41.01 Federal Disposal $46.64 Federal Disposal $59.06 , Wase Management $71.60 Solag $71.63 Solag $74.88 Waste Management $75.11 Solag $76.86 Solag $77.25 Rainbow Disposal $80.25 Waste Management $80.70 Waste Management $86.73 CR&R $88.01 Park Disposal EDCO $99.00 Waste Management $99.01 Solag $101.18 Taromina $101.43 Park Disposal EDCO $101.75 Park Disposal EDCO $101.96 Waste Management $102.44 Taromina $103.39 Taromina $109.18 CR&R $110.00 Taromina $113.00 Taromina $113.27 Rainbow Disposal $115.05 Taromina $115.15 Taromina $115.62 Rainbow Disposal $121.21 Taromina $122.07 Taromina City does not regulate rates Residential Solid Waste Service Rate Comparison County of Orange ' -.~i®.~ ,~.~,,~.~.~-.-?,.,,.-~.-~-~. ..... ~ ...... ~.. ............. . ............................. · ........ . ...................... ..~,,, ............. ~ ....... .~..~.~ .............. Westminister April-City Rep $8.00 Orange Lisa Matert $10.64 Santa Ana WM-Juan $10.64 Dana Point Rae Ann (Solag) $10.66 Irvine Christine (Waste Management) $10.78 Lake Forrest Christine (Waste Management) $10.95 Laguna Hills Rae Ann (Solag) $11.85 San Juan Capistrano Rae Ann (Solag) $11.88 Mission Viejo Internet $11.95 Laguna Niguel Rae Ann (Solag) $12.17 T usti n Existing $12.17 San Clemente Rae Ann (Solag) $12.19 Buena Park Debbie (Park Disposal BP) $12.40 Los Alamitos Gerard Goodard - City $12.50 T usti n Pro posed $12.59 Rancho Santa Margarita Christine (Waste Management) $13.22 Seal Beach Consolidated-Syliva $13.37 Stanton $13.57 Laguna Beach Jamie Pendelton City $13.77 La Habra WM-Daryl $14.00 Fullerton Karen Water/Waste Dept $14.10 La Palma Debbie (Park Disposal BP) $14.14 Costa Mesa Tom Fox $14.54 Brea Maria - Brea Disposal $15.12 Placentia Jackie - Placentia Disposal $15.15 Anaheim Amanda $15.20 Garden Grove $15.40 Yorba Linda Jackie-City Hall Yorba Linda Disposal $15.45 Villa Park Villa Park Disposal Barbara $15.97 Cypress City Hall - Alicia $16.02 Fountain Valley Bob - Water and Waste Dept $16.28 Huntington Beach Debra- City Hall $16.86 Newport Beach Laguna Woods