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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 2 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 3 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 7 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 12 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 13 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 14 Illegal Dumping Program –2021 Pilot Outcomes Marin Sanitary Service Rate Review December 6, 2021 15 431 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 16 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 17 Marin Sanitary Service Rate Review December 6, 2021 18 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 19 .49% Rate Impact SB 1383 & Franchise Agreement Amendment Marin Sanitary Service Rate Review December 6, 2021 20 SB 1383 Marin Sanitary Service Rate Review December 6, 2021 21 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 22 SB 1383 Marin Sanitary Service Rate Review December 6, 2021 23 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 24 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 25 Summary & Public Hearing Marin Sanitary Service Rate Review December 6, 2021 26 Summary & Public Hearing Marin Sanitary Service Rate Review December 6, 2021 27 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 28 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. 29