HomeMy WebLinkAboutCM Marin Sanitary Service Rates and Contract for 2022 PPTMarin Sanitary Service Rate Setting for 2022
&Amendment to the Franchise Agreement
San Rafael City Council
December 6, 2021
1
Overview
Marin Sanitary Service Rate Review
December 6, 2021
Tonight’s Presentation:
1.2022 Rate Review
2.Illegal Dumping Pilot Program
3.SB 1383 Amendment to Franchise Agreement
4.Public Hearing and Adopt two Resolutions
1.MSS Rates for 2022
2.Amendment to the Franchise Agreement
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Overview
Marin Sanitary Service Rate Review
December 6, 2021
Background
•State allows cities to regulate refuse service
•City works with other Marin jurisdictions
•Annual rate setting is a contractual agreement with MSS
•Based on a specific methodology revised in 2018
•MSS operations = Resource Recovery
•State legislation and diversion goals
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2022 Rate Review
Marin Sanitary Service Rate Review
December 6, 2021
4
Review of MSS
2022 Rate Application
Garth Schultz, Principal
December 6, 2021
SLIDE
6
1.Rate Adjustment Methodology
2.Summary of 2022 Rate Adjustments
3.Rate Comparison
AGENDA
SLIDE
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Indexed Rate Adjustment
Adjusts rate revenues based on streamlined methodology to achieve
transparent and predictable rate adjustments⎻MSS collection operations = 64% of rate revenues
•Adjusted based on nationwide BLS market index ⎻Post-collection processing/disposal = 11% of rate revenues
•Landfilling, recycling, and organics processing and disposal revenues are projected
based on tipping fees and tons ⎻State compliance = 1% of rate revenues
•Negotiated and adjusted based on needs assessment ⎻MSS operating profit = 8% of rate revenues
•Adjusted based on outcomes of the above, and are not guaranteed ⎻Government fees = 16% of rate revenues
•Franchise fee, vehicle impact fee, illegal dumping program, and Zero Waste Marin fees
set to actual fee amounts
RATE ADJUSTMENT METHODOLOGY
SLIDE
8
Increases
MSS collection operations⎻Adjusted per WST index –3.57% increase
State compliance⎻~$264K in new revenues for new area-wide organics route, education, tracking database,
and consulting support
Operating profit ⎻Adjusted per net changes to the above –3.11% increase
Government Fees⎻ZWM fees down 9.45%; franchise fee adjusted per net change in rate revenues, increase of
2.39%⎻Planned $345K increase to Refuse Vehicle Impact fee and proposed illegal dumping funding
of $104K
SUMMARY OF 2022 RATE ADJUSTMENTS
SLIDE
9
Decreases
Post-collection landfilling/organics/recycling⎻Garbage and organics tipping fees adjusted by WST 3.57% -tons are down –resultant
decrease of 6% ⎻Recycling tipping fee adjusted by processing cost (WST index) and sales of recyclable
materials –45% decrease (tons static)
Other reductions in rate revenues⎻Sunsetting of prior true-ups = 0.53% reduction to rates⎻Waiver of annual rate revenue reconciliation = 0.35% reduction⎻Reduced recycling property insurance = 0.07% reduction
Overall
2.39% increase in rates effective January 1, 2022⎻Residential 32-gallon increase of $1.09 per month ($45.75 to $46.84)⎻Commercial 3-cubic yard increase of $13.51 per month ($565.14 to $578.65)
Summary of 2022 Rate Adjustments
SLIDE
10
Monthly 32-gallon Residential Rates
RATE COMPARISON
$46.84
$51.18
$-
$10
$20
$30
$40
$50
$60
$70
Illegal Dumping Program
Marin Sanitary Service Rate Review
December 6, 2021
11
Illegal Dumping Program -Background
Marin Sanitary Service Rate Review
December 6, 2021
•~300 reports per year
•~$250,000 cost to City / year
•Majority of items landfilled
•50% of residents don’t have
access to bulky item collection
•Together San Rafael Team
•50% by 2025 Goal
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CityofSanRafael.org/dumping
Illegal Dumping Program –2021 Pilots
Marin Sanitary Service Rate Review
December 6, 2021
•Free bulky waste disposal events in two neighborhoods
•Free voucher program for tenants in apartments
•“Hot Spot” campaigns
•Free dump coupons for commercial victims of dumping
•Mini-grants for dumping prevention
•Partnerships and leveraged funding
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Illegal Dumping Program –2021 Pilot Outcomes
Marin Sanitary Service Rate Review
December 6, 2021
New Data Tracking App &
Dashboard
3 Types of Dumping:
Illicit dumping
Casual dumping
Homeless-related trash
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Illegal Dumping Program –2021 Pilot Outcomes
Marin Sanitary Service Rate Review
December 6, 2021
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431 Pickups in 2021
•Illicit dumping: 9%
•Casual Dumping: 91%
Who is the Casual Dumper?
Illegal Dumping Program –2021 Pilot Outcomes
Marin Sanitary Service Rate Review
December 6, 2021
•Casual dumper breakdown
•Events are more effective and cost-effective than vouchers
•Relationships built with community and managers
•Surveillance cameras work
•Predictability is important
•Shopping cart ordinance
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Illegal Dumping Program –2021 Pilot Outcomes
Marin Sanitary Service Rate Review
December 6, 2021
•Transportation is still a
challenge
•Enforcement needs to be
expanded
•Minimum service levels need
to be enforced and
reconsidered
•Community eager to help
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Marin Sanitary Service Rate Review
December 6, 2021
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Police
Department
Code
Enforcement
Public
Works
Digital Services
Marin Sanitary
Service
Conservation
Corps North Bay
Gigantic
Idea Studio
R3 Consulting
Group, Inc.
Multicultural
Center of Marin
Volunteers
and Residents
Illegal Dumping Program Team & Partners
2022 Illegal Dumping Program Pilot Proposal Activities
Marin Sanitary Service Rate Review
December 6, 2021
1.Expand bulky item collection days
2.Develop on-call pickup pilot
3.Expand Hot Spot campaigns including enforcement
4.Engage community in data and solution development
5.Analyze minimum service levels
6.Revise and develop educational materials
7.Continue Mini-grants for business prevention efforts
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.49% Rate Impact
SB 1383 & Franchise Agreement Amendment
Marin Sanitary Service Rate Review
December 6, 2021
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SB 1383
Marin Sanitary Service Rate Review
December 6, 2021
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2021 Rate Review
Marin Sanitary Service Rate Review
December 6, 2021
SB 1383 -State organic materials diversion mandate
•Unfunded mandate
•Sets Statewide targets for organic materials recovery
efforts
•Mandates diversion of organic materials from landfill
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SB 1383
Marin Sanitary Service Rate Review
December 6, 2021
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Provide Organics
Collection to All
Monitor Compliance
and Conduct
Enforcement
Secure Access to Edible and
Recycling Food Recovery
Capacity
Procure Recyclable
and Recovered
Organic Products
Establish Edible
Food Recovery
Program
Conduct Education &
Outreach to
Community
Local Agency Responsibilities
SB 1383
Marin Sanitary Service Rate Review
December 6, 2021
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Future Actions and Requirements
MSS Franchise Agreements⎻Amendment tonight to provide for SB 1383 provisions
City Municipal Code Update via Ordinance⎻January / February 2022
Regulations Take Effect January 1, 2022⎻Implementation report to State on April 1, 2022⎻First annual report October 1, 2022⎻Annual reports each August 1st
Enforcement begins January 1, 2024⎻Tier 2 Edible Food Generators required to donate
SB 1383 Amendment to Franchise Agreement
Marin Sanitary Service Rate Review
December 6, 2021
•Containers, lids, and colors for Statewide uniformity
•Expanded service to cover all generators of organic materials
•Route reviews
•Compliance reviews, including contamination notices &
assistance with waiver process & verification
•Education and outreach
•Documentation and reporting
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Summary & Public Hearing
Marin Sanitary Service Rate Review
December 6, 2021
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Summary & Public Hearing
Marin Sanitary Service Rate Review
December 6, 2021
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1. MSS 2022 Proposed Rate Adjustment
2.39% increase in rates effective January 1, 2022, including addition of an
Illegal Dumping Pilot Program
Impact to most common subscription types:
Residential 32-gallon: increase of $1.09 per month ($45.75 to $46.84)
Commercial 3-cubic yard: increase of $13.51 per month ($565.14 to $578.65)
2. Fourth amendment to the Amendment and Restatement of
Collection Agreement of the City of San Rafael with Marin
Sanitary Service
Summary & Public Hearing
Marin Sanitary Service Rate Review
December 6, 2021
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QUESTIONS? City Council Recommendation
Adopt a resolution establishing maximum rates collected by Marin Sanitary Service for
Refuse and Recyclable Material Collection and Disposal Services, to be effective January 1,
2022, with the addition of an Illegal Dumping Pilot Program for a total increase of 2.39%
over 2021 rates, and
Adopt a resolution approving a fourth amendment to the Amendment and Restatement of
Collection Agreement of the City of San Rafael with Marin Sanitary Service.
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