2005-91 AUTHORIZING MAXIMUM RATES FOR REFUSE HAULERS

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, request for a zzed ann�al surcharge would not take into account the volatility of fuel prices. In �� the current climate however, a fuel surcharge maybe appropriate; not to completely offset the � increase in fuel costs faced by the haulers but to partially defray that increase. It is therefore recommended that such a surcharge be implemented as a percentage of the monthly fee. The surcharge wouid be based on the National U. S. Average On Highway Diesel Fuel Prices reported by the U. S. Department of Energy for the month that is two months prior to the adjustment. Changes to the surchazge would be effective the first Monday of each month and the haulen notified by the City approximately two weeks prior to the effective date. For example, the surcharge for October, 2005, effective Monday, Oct 3nd. would be based on the reported average fuel price for the month of August, 2005. Following is a suggested table of surcharges: Per Gal. Cost of But less than char�e t least ;; $1.50 0% '$1.50 $1.60 0.25% $1.60 $1.70 0.50% $1.70 $1.80 0.75% $1.80 $1.90 1.00% $1.90 $2.00 1.25% $2.00 $2.10 1.50% $2.10 $2.20 1.75% $2.20 $2.30 2.00% $2.30 $2.40 2.25% $2.40 $2.50 2.50% $2.50 $2.60 2.75% $2.60 �2.70 3.00% $2.70 $2.80 3.25% $2.80 $2.90 3.50% $2.90 $3.00 3.75% $3.00 $3.10 4.40% At the time of this writing,as reported by the U. S. Deparnnent of Energy,the average cost of diesel fuel for the month of July was $2.341.[See exhibit 2]. That would therefore establish a fuel surcharge for the month of September of 2.25% effective September 5. This would increase the monthly bill of a single family resident receiving twice per month pickup service $0.40.A single family resident receiving once a month pickup would see an increase of$0.34. As the cost of fuel decreases, so does the surcharge. A,t'rxed annual fuel surcharge�is inappropriate. If the cost of fuel exceeds �3.10/gal., then the council can opt to extend the table or cap the surcharge. In summary, it is recommended as follows: 1. Keep the same level of services at the existing base rates for each class of sen-ice. 2. Eliminate yard waste pickup from January 1 - March 31 of each year. 3. Roll back ciry licensing fees and vehicle registi-ation fees to pre-2005 levels.