WM Overbilling Delray AGAIN?

Chaz StevensPolitics0 Comments


Our man on the Delray Beach scene, Kenneth MacNamee, is at it again.

Every town would be grateful to have someone like him…


Mr. Harden:

I reviewed Ord.32-11 with the last WM rate increase for trash services. The Charts and Tables indicated different % rate increase for Residential (8.5%) vs. Commercial (8.3%).

So, I researched the governing Contract Amendment 2008 and the two statistical tables (Miami Ft. Lauderdale CPI and Lower Atlantic Diesel Retail Prices).

Here are my calculations. Please tell me where I erred:

  1. The April 2010 CPI index increased from 222.625 to the April 2011 level of 231.503– a 3.99% increase I assume gets rounded to 4%
  2. The average monthly per gallon diesel price for the 12 months ended April 2010 rose from $2.67 per gal to $3.23 per gal for the year ending April 2011.
  3. According to the Fuel Surcharge Calculation table (pg. 9 of the 2008 Amendment), the “Percent of Surcharge” falls from (6%) to (2%)– an increase of 4%

These two calculations result in total to an 8% increase (4% CPI and 4% Diesel).

If my calculations are correct, then why did Ord 32-11 indicate “Total Fees-Contractor” for Curbside Roll-Out Carts increase from $10.52 to $11.42 ( a 8.56% increase). An 8% increase should have increased WM’s charge to the City to only $11.36– $.06 less.

$.06 per month per customer doesn’t sound like much money but when it is extended for 33,000 residential customers for a year, it means WM will have overbilled Delray $23,760. And, the inflated base rate will be utilized for the upcoming 10/01/12 WM rate increase. I calculate that will be 4% (2% CPI and 2% Diesel). Am I correct?

Finally, WM increased its Commercial rates for Collection by 8.3%. Why not 8.5%? based on my reading of the 2008 Contract Amendment, the percentage rate increases for residential and Commercial should be identical.

Please investigate. Maybe WM is billing the City properly and the Ordinance is wrong. I await your reply.