HomeMy WebLinkAboutCC Resolution 14053 (MSS Rates 2016)RESOLUTION NO. 14053
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ESTABLISHING
MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE FOR REFUSE AND
RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES, TO BE
EFFECTIVE RETROACTIVELY TO JANUARY 1, 2016
WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into an
"Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin
Sanitary Service," dated September 4, 2001 and amended by a written first amendment
dated March 1, 2005 and a written second amendment dated November 14, 2012 (hereafter
the "Collection Agreement"); and,
WHEREAS, Section 3 (B) of the Collection Agreement provides for maximum rates
allowed to be collected by Marin Sanitary Service, to be amended from time to time by the
City Council; and,
WHEREAS, Exhibit "C" of the Collection Agreement provides for approved rate
schedules, as amended by the City Council from time to time, to be included as part of the
Collection Agreement; and,
WHEREAS, Marin Sanitary Service has submitted a rate application request using
the methodology outlined under Section 3 (A) of the Collection Agreement; and,
WHEREAS, the City of San Rafael has conducted a review of said rate application
and produced a report recommending rate and fee adjustments; and,
WHEREAS, the City of San Rafael has determined that such rate and fee
adjustments are proper, in the best interest of all citizens, and will promote public health,
safety and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES
RESOLVE, DETERMINE AND ORDER AS FOLLOWS: The schedule of maximum rates
and fees attached hereto as "Exhibit C' and incorporated herein by reference, is hereby
approved to be collected by Marin Sanitary Service for refuse and recyclable material
collection and disposal services, to be effective retroactively to January 1, 2016. Said
"Exhibit C" shall be incorporated as the revised Exhibit "C" to the Collection Agreement.
I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of San Rafael, held on Monday, January 4, 2016, by the following vote, to
wit:
AYES:
Councilmembers:
Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES:
Councilmembers:
None
ABSENT:
Councilmembers:
None
ESTHER C. BEIRNE, City Clerk
EXHIBIT C
City of San Rafael
Refuse Collection Rates
Effective 1/1/2016
Effective 1/1/2016 - 5.71% Rate Increase
Residential Service (Bundled service includes 1 cart for aarbaae. 1 cart for oraraics and 1 SD/it cart for recvclina)
FLAT HILL
Cart Service Current 2015 Rate New 1101/2016 Rate Current 2015 Rate New 1/01/2016 Rate
Weekly Service
20 gallon
32 gallon
64 gallon
96 gallon
Low income - 20 gal*
Low income - 32 gal*
Low income - 64 gal*
Senior rate**
Compacted 32 gal
Compacted 64 gal
Monthly
Amt of Inc
Monthly I
Monthly
Amt of Inc
$28.80
$1.56
$30.86
$32.62
$1.76
$33.88
$1.83
$36.31
$38.38
$2.07
$67.76
$3.66
$72.62
$76.76
$4.14
$101.64
$5.49
$108.93
$115.14
$6.21
$23.03
$1.24
$24.69
$26.10
$1.41
$27.06
$1.46
$29.06
$30.72
$1.66
$54.12
$2.92
$58.12
$61.44
$3.32
$23.92
$1.29
$28.81
$30.46
$1.65
$67.76
$3.66
$72.62
$76.77
$4.15
$135.52
$7.32
$145.24
$153.53
$8.29
*Must meet PG&E CARE program eligibility requirements
**Customers with these rates prior to 2005 will keep the existing rate type. No new customers will be added with this rate type.
Multi -Family Service (Bundled service includes gaCt)9ne, recvclinq and orqanics services)
I �FLAATT HILL
lCart Service***
Current 2015 Rate
New 1/01/2016 Rate
$1,055.48
Current 2015 Rate
New 1/01/2016 Rate 1
Cart Size
3 yard
Monthly
Monthly Amt of
Inc
Monthly
Monthly
Amt of Inc 1
20 gallon
$564.87
$27.24
$28.80
$1.56
$30.86
$32.62
$1.76
32 gallon
$1,209.43
$32.05
$33.88
$1.83
$36.31
$38.38
$2.07
64 gallon
$2,205.59
$64.10
$67.76
$3.66
$72.62
$76.77
$4.15
96 gallon
4
$96.15
$101.64
$5.49
$108.93
$115.15
$6.22
Rates are per container, per # of pickups/wk
Note: Multi -Family service is equivalent to one 32 gallon cart per unit -minimum, decrease to 20 gallon per unit
subject to company review.
IBin Service - FL Collections per Week
2 yard
$304.20
$697.27
$1,055.48
$1,420.00
$1,790.93
$2,168.20
3 yard
$395.94
$725.66
$1,102.81
$1,489.49
$1,885.71
$2,291.46
4 yard
$564.87
$1,041.02
$1,580.50
$2,132.82
$2,648.38
$3,275.58
5 yard
$611.01
$1,209.43
$1,838.00
$2,482.45
$3,142.84
$3,819.11
6 yard
$716.10
$1,451.33
$2,205.59
$2,978.97
$3,771.41
$4,582.92
New 1/1/2016
1
2
3
4
5 1
6
2 yard
$321.55
$737.10
$1,115.75
$1,501.10
$1,893.20
$2,292.00
3 yard
$418.55
$767.10
$1,165.80
$1,574.55
$1,993.40
$2,422.30
4 yard
$597.10
$1,100.45
$1,670.75
$2,254.60
$2,799.60
$3,462.60
5 yard
$645.90
$1,278.50
$1,942.95
$2,624.20
$3,322.30
$4,037.20
6 yard
I
$757.00
$1,534.20
$2,331.55
$3,149.05
$3,986.75
$4,844.60
Bin Service - RL 1 2 3 4 5 1 6
current 2015 Rate
1 yard* $199.36 $401.90 $607.66 $816.58 $1,028.65 $1,243.91
2 yard $305.02 $610.24 $924.91 $1,245.94 $1,790.93 $2,168.20
New 1/1/2016 1 2 3 4 5 1 6
1 yard* $210.75 $424.85 $642.35 $863.20 $1,087.40 $1,314.95
2 yard $322.45 $645.10 $977.70 $1,317.10 $1,893.20 $2,292.00
J*No longer offered to new customers
Note: Multi -Family service is equivalent to one 32 gallon cart per unit -minimum, decrease to 20 gallon per unit
subject to company review.
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Subject: Review of Marin Sanitary Service's 2016 Rate Application
Dear Ms. McGuire, Ms. Alilovich and Messrs. Schwarz, Chinn, and Divine:
Robert D. Hilton, CMC
John W. Farnkopf, PE
Laith B. Ezzet, CMC
Richard J. Simonson, CMC
Marva M. Sheehan, CPA
Robert C. Hilton, CMC
On September 8, 2015, Marin Sanitary Service (MSS) submitted its application for an 11.09% increase to
its solid waste, recyclables and organic materials collection rates, effective January 1, 2016. HF&H
conducted our review of the application based on the rate methodology agreed to between MSS and the
cities of San Rafael and Larkspur, the Town of Ross, the County of Marin (County), and the Las Gallinas
Valley Sanitary District (LGVSD), collectively referred to as the "Franchisors". We find that a 5.61%
increase is appropriate.
In 2014, the unincorporated areas of the County known as the Ross Valley Sanitary District — North
(RVSD-N) became part of a master agreement between the County and MSS. All three of the County areas
served by MSS (Ross Valley Sanitary District — South (RVSD-S), Central County, and RVSD-N) are now
included in the 2016 rate -setting process. This change in agency members is reflected in the findings and
information contained in this report.
" Managing Tomorrow's Resources Today
Marin Franchisors Group
December 17, 2015
Page 2 of 7
The following table summarizes, by jurisdiction, the current and proposed 32 -gallon residential rates,
which is the most common subscription level.
Findings and Recommendations
Upon receipt of the application, HF&H reviewed the documents for completeness and compliance with
the procedures agreed upon by MSS and the Franchisors and verified the mathematical accuracy and
logical consistency of the supporting schedules.
Based on our review of the application, we determined the 2016 Rate Adjustment Factor to be a 5.61%
increase to rates. We believe this Adjustment Factor is appropriate to compensate MSS for its projected
expenses. The Rate Adjustment Factor is defined in the rate -setting methodology as the Total
Contractor's Revenue Requirement for the coming year divided by the Gross Rate Revenues. We have
reviewed our findings with MSS and they are in agreement with our proposed rate adjustment.
The 5.61% Rate Adjustment Factor results primarily from: 1) increase in employee benefits in accordance
with the collective bargaining agreement over the last 3 years that was greater than the CPI adjustments
for the same period; 2) increase in general and administrative expenses for public outreach materials,
permitting costs, and hardware/software maintenance for truck and office systems; and, 3) a partial offset
by the decrease in fuel expense due to the volatility of prices when projecting fuel costs, and a decline in
disposal expense due to the change in the processing facility for organic materials.
The following table summarizes the components of the Rate Adjustment Factor.
Marin Franchisors Group
December 17, 2015
Page 3 of 7
Managing Tomorrow's Resources Today
Includes profit and general & administrative costs (e.g., public education,
customer service, etc.) .
This lower -than -applied -for adjustment is based on several adjustments to MSS' rate calculation (agreed
upon by MSS management) as described in Section IV of the report and reflected in Table 4 and
Attachment 2.
Summary of Significant Changes for 2016
2016 Rate Adjustment Components — 5.61%
Wages —1.64%
As shown in Table 2, the wages expense component contributed 1.64% to the overall recommended
5.61% Rate Adjustment Factor. The increase is primarily attributable to standard wage increases in
accordance with MSS' collective bargaining agreement (averaging approximately 3% on an annualized
basis).
Benefits — 3.71%
As shown in Table 2, the benefits expense component contributed 3.71% to the overall recommended
5.61% Rate Adjustment Factor. The increase is primarily a catch-up of actual benefits, which increased by
approximately 8.00% per year while rates were set with benefits limited to the average annual
Jl�
CONSULTANTS, LLC
" Managing Tomorrow's Resources Today
Marin Franchisors Group
December 17, 2015
Page 4 of 7
Employment Cost Index of approximately 2% during the past 2 index year adjustments. The adjustment
resets the base benefit expenses for 2016 and the following 2 years. It does not include a retroactive
adjustment for previous years.
Fuel and Oil — (2.99%)
As shown in Table 2, the fuel expense component contributed -2.99% to the overall recommended 5.61%
Rate Adjustment Factor. The decrease is attributable to a steady decline in fuel prices in 2015 (2015
projected price of $3.84 per gallon and revised 2015 projected price of $2.63 per gallon). Fuel prices are
extremely volatile causing significant fluctuations from year to year.
Disposal — (0.88%)
As shown in Table 2, the disposal expense contributed -0.88% to the overall recommended 5.61% Rate
Adjustment Factor. The decrease is attributed primarily to a reduced disposal cost for organic material
volumes going to Redwood Landfill instead of the Zamora processing facility.
Depreciation and Interest — 0.84%
As shown in Table 2, the depreciation expense component contributed 0.84% to the overall recommended
5.61% Rate Adjustment Factor. The increase is primarily due to additional depreciation for replacement
vehicles, building compliance and retrofit, and increased capital expenditures for equipment repairs and
maintenance. Additionally, MSS' interest rate is slightly higher than in prior years.
Maintenance — 1.42%
As shown in Table 2, the maintenance expense component contributed 1.42% to the overall
recommended 5.61% rate adjustment. Maintenance expenses include vehicle and equipment outside
repair costs, parts, tires, vehicle licenses, etc. Manufacturer maintenance guidelines on new vehicles
require more frequent and in-depth preventative services.
Other Operating Expenses — 2.51%
As shown in Table 2, the other operating costs component contributed 2.51% to the overall recommended
5.61% rate adjustment. The increase is primarily related to increased costs in public outreach,
hardware/software maintenance on the truck and office computer systems (trucks now have on -board
tablets to report issues), and annual permitting requirements at the facility.
Revenue — (0.64%1
As shown in Table 2, a revenue surplus contributed -0.64% of the overall recommended 5.61% Rate
Adjustment Factor.
CONSULTANTS LLC
Managing Tomorrow's Resources Today
Marin Franchisors Group
December 17, 2015
Page 5 of 7
Reserves for Future Diversion Programs
During 2012, the Franchisors and MSS agreed to share the net revenues from the processing of recyclable
materials collected from the Franchisors' customers, beginning with actual results in calendar year 2011.
It was agreed that the net revenues would be contributed to a reserve to fund one-time costs of future
diversion programs. As reflected in Table 3, the reserve amount decreased $120,074 to a net deficit of
$19,825. The decrease in the reserve is due to an increase in processing costs per ton ($201.30 in 2014
vs. $188.84 in 2013) from a combination of additional sorters to produce a cleaner product and
inflationary increases in other costs. Favorable commodity pricing per ton ($185.97 in 2014 vs. $177.54 in
2013) partially -offset the cost increases. MSS reported it will be performing a review of its operations in
2016.
Table 3: Reserve for Future Diversion Programs
Net Addition
Based on (Reduction)
Rate Year Financial Year to Reserve
2013
2014
2015
2016
Reserve Balance
2011
$ 232,707
2012
(85,153)
2013
(47,305)
2014
(120,074)
$ (19,825)
The next update to the reserve will be completed as part of the 2017 rate application process and will be
based upon 2015 calendar year results. Should the net Dositive value in the reserve exceed $250,000,
then the excess shall be used to offset one-time costs related to diversion programs approved by a
majority of the agencies comprising the Franchisors' Group. Should the net neizative value in the reserve
exceed $250,000, the City or the Contractor may request a review of the actual costs and revenues of
providing the service at which time the Franchisors Group and Contractor have agreed to meet and confer
to determine a reasonable remedy to the Contractor.
Comparison of Approved 2015 and Proposed 2016 Revenue Requirement
Table 4 provides a comparison of the approved 2015 revenue requirement to the proposed 2016 revenue
requirement necessary to reimburse MSS in accordance with the agreed-upon rate -setting methodology.
This comparison is between a modified index year (2015) and a cost -based detail year (2016) and include
the County area of RVSD-N in both years for comparison purposes. The results of the cost -based detail
year serve as a "base" for the future "index" years.
;�_MC0N_c,ULTANT_c,,LLQ
Managing Tomorrow's Resources Today
Marin Franchisors Group
December 17, 2015
Page 6 of 7
It is important to understand that there are several expense line items that are trued -up each year
regardless of the performance of a modified index review or cost -based detail review. Expenses that are
reviewed on an annual basis include disposal, fuel, depreciation, interest, workers' compensation (a
component of the benefits line) and JPA fees (a component of the other operating/G&A line). Those
expenses include adjustments for actual expenditures and third -party rate projections (e.g., disposal,
organics processing, insurance, JPA fees).
It should be noted that the revenue requirements for both years are projections and MSS is not
guaranteed the operating profit as shown in the table.
Table 4: Comparison of 2015 Approved Revenue Requirement to 2016 Proposed Revenue
Requirement
Expenses: Current MSS Operations
Wages
Benefits
Disposal Fees
Fuel & Oil
Maintenance Expense
Depreciation/Leases
Other Operating/G&A
Total Operating Expenses
Operating Profit
Interest Expense
Total Expenses for Current Operations
Revenue Requirement for Current Services
*Adjusted to include RVSD-N for comparison purposes.
2015 Approved
2016 Proposed
Percent
Rate Application*
Rate Application
Change
Change
$ 7,135,184
$ 7,529,000
$
393,816
5.52%
3,612,114
4,544,157
932,043
25.81%
3,912,984
3,716,437
(196,547)
-5.01%
1,164,033
397,602
(766,431)
-65.83%
1,475,490
1,828,346
352,856
23.92%
2,155,435
2,261,192
105,757
4.92%
3,168,929
3,636,462
467,533
14.76%
22,624,169
23,913,196
1,289,027
5.70%
2,374,913
2,510,224
135,311
5.71%
280,946
379,828
98,882
35.21%
$ 25,280,028
$ 26,803,248
$
1,523,220
6.25%
$ 25,280,028
$ 26,803,248
$
1,523,220
6.25%
The variances from prior year are summarized as follows:
1. Wages —The prior year included adjustments for MSS' F2E and Operations Improvement plan that
resulted in lower 2015 approved wages. The actual increase in wages is in line with CPI when
these adjustments are added back for comparison;
2. Benefits — Increase resulted from the actual benefit costs increasing at a rate higher than CPI. The
actual average annual increase for the last 3 years was approximately 8%;
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Franchisors of Marin Sanitary Service Section I. Background
Review of Marin Sanitary Service's 2016 Rate Application
SECTION I. BACKGROUND
Description of Current Services
Marin Sanitary Service (MSS) provides franchised refuse, recyclable materials, and organics collection and
processing services to the residents and businesses of the cities of San Rafael and Larkspur, the Town of
Ross, the County of Marin (County), and the Las Gallinas Valley Sanitary District (LGVSD) collectively
referred to as "Franchisors". In 2014, unincorporated areas of the County known as the Ross Valley
Sanitary District - North (RVSD-N) were added as a member of the Franchisors. In addition, MSS and its
non -franchised related entities (Marin Resource and Recovery (MRR), the Marin Resource Recovery
Center (MRRC), and Northern Recycling Compost — Zamora (Zamora)), provide solid waste, recyclable
materials, and organics collection and processing services to the residents and businesses of San Anselmo
and Fairfax, as well as the Franchisors' jurisdictions. MSS also provides non -franchised debris box, street
sweeping, and document shredding services to residents and businesses throughout the county that
contract for their services.
MSS delivers refuse collected from waste generators within the Franchisors' service area to the MSS
transfer station and then transports it to the Redwood Landfill (Redwood), which is an unrelated party.
MSS delivers recyclable materials to the non -franchised MRR, where materials are processed and
marketed. MSS delivers recyclable -rich loads of refuse (typically commercial) and separated organics
loads (collected from residents) along with public self -haul loads to the non -franchised MRRC where
recyclable materials are extracted from the waste stream, processed, and marketed. The MRRC delivers
residual waste (the materials remaining after the recyclable materials are extracted) to the MSS transfer
station. This residual waste is transferred to Keller Canyon Landfill.
Franchised organics are transported by a third party to a composting facility. This material has historically
been transferred to Zamora; however, in 2015, MSS started transferring organics exclusively to Redwood
for composting at favorable rates to the Franchisors.
In 2011, MSS expanded its residential yard waste service to include food scraps with the green trimmings.
State regulations mandate that this organic material (food scraps and yard waste) is collected every week;
therefore, MSS expanded its organics service from bi-weekly to weekly collection from residential
customers for the all of the Franchisors. The organic material is delivered to Redwood for composting.
In 2012, HF&H assisted the Franchisors in the negotiation of the revised Contractor's Revenue
Requirement and Rate Adjustment methodology. Significant revisions included documentation of:
1) procedures that had been agreed to by MSS and the Franchisors over the years but not documented;
2) related -party fees and future adjustment mechanisms; 3) additional reporting to be submitted with the
rate adjustment applications; and, 4) procedures to develop a reserve for diversion programs by sharing
in MRR's net revenues (net recyclables processing revenues).
In early 2014, MSS began collection and processing for the Food -to -Energy program (F2E) approved by
the Franchisors in 2013. Food waste is collected using a specialized vehicle and processed on a dedicated
sort line at MSS and delivered to the Central Marin Sanitary Agency (CMSA) for conversion to energy. MSS
is operating the program 6 days per week on one route and has about 120 participants.
HF&H Consultants, LLC 1 December 17, 2015
Franchisors of Marin Sanitary Service Section II. Rate Review Approach
Review of Marin Sanitary Service's 2016 Rate Application
SECTION II. RATE REVIEW APPROACH
Rate Adjustment Methodology
The Rate Adjustment Methodology was developed by the Franchisors in cooperation with MSS and
approved by the Franchisors Group in 2001 and revised in 2012 with approval by the individual
jurisdictions.
This revised method was used to determine 2016 recommended rates utilizing audited 2014 and actual
2015 year-to-date financial results that are adjusted by changes in certain indices (e.g., CPI, employment
cost index and the transportation index). Also, new projections of certain costs (e.g., disposal expense,
fuel expense, workers' compensation expense, depreciation, interest expense, and fees imposed by the
Marin County Hazardous and Solid Waste Management Joint Powers Authority (JPA)) and revenues
(e.g., collection rate revenues) are made to determine the 2016 rates. Section III describes the
methodology in more detail and findings from the application of the methodology to MSS' Application.
H F&H Scope of Review
The Franchisors engaged HF&H in August 2015 to perform a review of the Application in accordance with
the Rate Adjustment Methodology (i.e., "agreed upon procedures"). The scope of this review is described
in our engagement letter dated July 21, 2015. These procedures included the following activities:
• Reviewing MSS' Application to determine completeness, mathematical accuracy, and
reasonableness and logical consistency of the assumptions supporting the projected revenues and
expenses;
• Reviewing MSS' calculation of rate year 2016 indexed expenses by comparing them to the
calculated expenses for 2015 (which were established in HF&H's prior report) and the calculated
changes to the applicable indices;
• Reviewing other projected expenses including depreciation, fuel, interest, disposal and
recyclables/organics processing expenses by evaluating the reasonableness of MSS' estimates for
these expenses based on historical trends and MSS management's plans;
• Reviewing projected revenues to ensure that they are consistent with past trends and anticipated
conditions;
• Reviewing MSS' calculation of projected profit for compliance with the procedures and
mathematical accuracy;
• Reviewing the appropriateness of MSS' allocation of revenues and expenses among the
Franchisors and other service areas;
• Reviewing MSS' costs and cost savings projections and anticipated rate impact for its Operation
Improvement Plan;
• Reviewing our recalculation of MSS' projected results of operations and our recommendations
with MSS and the Franchisors' representatives;
• Compiling a survey of comparable rates in effect in other municipalities in Marin County, as well
as neighboring jurisdictions in other counties; and,
HF&H Consultants, LLC 2 December 17, 2015
Franchisors of Marin Sanitary Service Section II. Rate Review Approach
Review of Marin Sanitary Service's 2016 Rate Application
• Preparing a written report that documents our findings and recommendations.
Limitations
Our review was substantially different in scope than an examination in accordance with Generally
Accepted Auditing Standards, the objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion. However, Chiao Smith
McMullin + McGuire, An Accountancy Corporation, has issued an unqualified opinion of MSS' 2014
financial statements. The unqualified opinion denotes that the financial statements of MSS were fairly
and appropriately presented.
Our conclusions are based in part on the review of MSS' projections of its financial results of operations.
Actual results of operations will usually differ from projections because events and circumstances
frequently do not occur as expected and the difference may be significant.
HF&H Consultants, LLC 3 December 17, 2015
Franchisors of Marin Sanitary Service Section III. MSS' Projection Methodology (Base Year)
Review of Marin Sanitary Service's 2016 Rate Application
SECTION III. MSS' PROJECTION METHODOLOGY (BASE YEAR)
Current Operations
In projecting 2016 costs, MSS included the direct costs for the Franchisors' Group garbage collection, the
transfer station, and recycling collection. Shop costs and administrative costs are allocated among the
agencies served by MSS using truck route hours and an average of projected revenue, annual customer
counts and department's (MSS, MRR, MRRC, Transfer Station, etc.) respective percentage of wages.
Management salaries are allocated to departments based upon actual time spent by management related
to that department.
Expenses
MSS projected its 2016 expenses (less non -allowable costs, such as donations, fines for penalties, certain
attorney's fees, goodwill, etc.) for each expense category by:
• Basing wage, salary, and benefit expenses on negotiated labor agreements for represented
employees as well as reasonable wage and salary adjustments for non -represented employees.
Workers compensation expenses were projected using the wages established above times the
applicable premium rates for 2016;
• Forecasting projected 2016 disposal expense using projected tons multiplied by the 2016 disposal
rate per ton and including adjustments to: 1) 2014 actual disposal expenses, and; 2) updated 2015
disposal expenses;
• Forecasting projected 2016 fuel expense based on 2015 actual annualized costs to date and
gallons of fuel and including adjustments to 2014 actual fuel expense and estimated 2015 fuel
expense based on actual 2014 average price and year-to-date 2015 average price;
• Forecasting projected 2016 equipment and vehicle maintenance expense was based on historical
costs adjusted for any changes in the number of equipment and vehicles to be maintained and
the cost of such maintenance,
• Forecasting projected 2016 depreciation and lease expense based on MSS' actual depreciation
expense and anticipated future capital purchases;
• Forecasting projected 2016 JPA fees based on the tons collected for the Franchisors' Group by
MSS for the period determined and rate established by the JPA;
• Forecasting projected 2016 other operating/G&A based on historical costs; and,
• Forecasting projected 2016 interest expense based on MSS' actual interest from its loan
amortization schedules for actual and projected asset purchases for the remainder of 2015 and
2016.
Route Revenues
In order to mitigate significant differences in the forecasted and actual revenues received, a three-year
trend in subscription levels is factored into the necessary rate adjustment. Actual revenue received
through June 2015 and projections for the remainder of the year were multiplied by the average
percentage surplus or shortfall of rate revenue for the three most recently completed rate years. MSS
HF&H Consultants, LLC 4 December 17, 2015
Franchisors of Marin Sanitary Service Section III. MSS' Projection Methodology (Base Year)
Review of Marin Sanitary Service's 2016 Rate Application
calculated the 3 year average achievement percentage of 100.14%, meaning actual revenue received has
averaged 100.14% of what was projected over the past 3 years.
Operation Improvement Plan
In 2012, MSS contracted with R. J. Proto Consulting Group, Inc. (Proto) to assess MSS' collection operation
and inform management of improvements and changes necessary for the company's success. MSS
management reviewed the results of the report and has recruited six of the seven personnel additions
recommended by Proto.
The personnel additions were expected to allow collection operations and general management to
operate more effectively, resulting in planned route reductions over the next few years. Four routes have
been eliminated since the implementation of the plan. MSS is continuing to work with Proto in evaluating
the operations to attain additional labor efficiencies.
Commercial Food to Energy (F2E) Program
MSS provides a commercial food waste collection program in conjunction with CMSA. Currently, there is
1 full route and the service is expected to be expanded to 2 routes in 2016. One thousand thirty-five
(1,035) tons were collected in 2014 and 1,226 tons are projected for 2015.
Profit
MSS calculated its 2016 profit by applying the agreed-upon 90.5% pre-tax operating ratio to its 2016
total projected expenses that are eligible for profit.
MSS' Calculated Rate Adjustment Factor
Initially, MSS calculated the 2016 Rate Adjustment increase to be 11.09%. The Rate Adjustment Factor
equals the Total Contractor's Revenue Requirement for the coming Rate Year divided by the Gross Rate
Revenues. Gross Rate Revenues mean the statements of charges for services rendered by Contractor, to
owners or occupants of property, including residential and commercial premises, for the collection of
materials pursuant to the Agreement, net of a reasonable allowance for uncollectible accounts, and
adjusted for the calculated three-year average revenue achievement.
HF&H Consultants, LLC 5 December 17, 2015
Franchisors of Marin Sanitary Service Section IV. Proposed Adjustment
Review of Marin Sanitary Service's 2016 Rate Application
Adjustments to 2016 Projected Expenses for Current Operations
Wages
HF&H recommends reducing wages expense by $200,506 due to the following (Table 5, Line 1):
Reduce wages by $57,814 due to changing the wage base used to project 2016 wages. MSS
compiled actual year-to-date wages through June 2015, annualized the total and applied a CPI
escalator to project 2016 wages. Past practice utilized the most recently audited annual wages,
2014 for this review, and applied CPI escalators to estimate 2016 wages. The recommended
adjustment is the difference between the two methods.
Reduce wages by $142,692 due to a delay in hiring for the Accounting / Controller position for the
Operation Improvement Plan. The position was expected to be filled in 2015. However, since it
was not, wages for 2015 have been removed. MSS has been unable to locate a suitable candidate
to fill the position, but continues to search and expects to fill it in 2016. If the position is filled,
MSS may request an adjustment in the next index year review to add the cost as an allowable
expense and the expense would become part of the 2017 Rate Adjustment discussions.
Benefits
HF&H recommends reducing workers compensation by $25,074 (Table 5, Line 2) corresponding to the
recommended reduction to wages.
Disposal Fees
HF&H recommends reducing MSS' projected disposal fees by $280,307 due to the following (Table 5, Line
3):
Reduced disposal by $210,946 due to MSS changing processing facilities for franchised organic
volumes. In the beginning of May 2015, MSS began transporting organics exclusively to Redwood
rather than the previous destination at Zamora. The decrease in cost is attributed to lower
transportation expenses, which resulted in an approximately $8.50 per ton overall lower
processing rate for 2015 and 2016 volumes delivered to Redwood.
• Reduced disposal by $50,464 to disallow MSS' profit for 2014, 2015, and 2016 on the cities of San
Rafael and Larkspur's coupon program for residents to use the MRRC for household disposal
needs. The coupon rate charged to the Franchisors included the profit at the MRRC.
• Reduced disposal by $18,897 to adjust the City of San Rafael's direct haul rate at the MRRC for
2014, 2015, and 2016 to the existing approved Franchisors' rates. The MRRC was charging the
gate rate on direct hauls instead of the approved rates set by the rate methodology.
Fuel & Oil
HF&H recommends reducing MSS' projected Fuel & Oil costs by $31,080 (Table 5, Line 4) due to an
updated projected average per -gallon fuel price. MSS' application projected fuel cost based on the actual
year-to-date average per -gallon rate for purchases through July 2015. An updated price trend based on
actual invoices through September 2015 resulted in a decrease of $0.056 per gallon for rate years 2015
and 2016.
HF&H Consultants, LLC 7 December 17, 2015
Franchisors of Marin Sanitary Service Section IV. Proposed Adjustment
Review of Marin Sanitary Service's 2016 Rate Application
Maintenance Expense
HF&H reviewed and does not recommend an adjustment to MSS' projected 2016 Maintenance Expense
(Table 5, Line 5).
Depreciation/ Leases
HF&H recommends reducing depreciation by $196,813 (Table 5, Line 6) resulting from a review of MSS'
5 -year capital expenditure plan and delaying planned 2016 expenditures (primarily the delay of significant
transfer station repairs). MSS is currently analyzing collection/processing alternatives.
Other Operating Expense
HF&H recommends reducing other operating expense by $156,510 (Table 5, Line 7) resulting from
removing expenditures related to future capital projects, staff development, and other expenses not
directly related to the Franchisors.
Operating Profit
HF&H recommends reducing MSS' projected operating profit by $93,457 (Table 5, Line 9), resulting from
the decreases in operating costs described above.
Interest Expense
HF&H recommends reducing MSS' projected interest expense by $39,039 (Table 5, Line 10),
corresponding to the reduction of asset purchases for 2016.
Adjustments to Projected Revenue at Current Rates
HF&H recommends increasing revenue net of franchise fees by $329,995 due to the following (Table 5,
Line 18):
• Increased revenue net of fees by $7,283 to correct the 3 -year trend on actual revenue to calculate
the average forecast achievement to gross rate revenue. MSS' application included a typo that
nominally resulted in a lower three-year trend.
• Increased revenue by $322,712 for expected 2015 and 2016 non-regulated revenues from the
public, MRR, and MRRC their proportionate share of transfer station assets and operating
expenses.
Adjustments to Net Recyclable Revenue Reserve
During 2012, the Franchisors and MSS agreed to share the net revenues from the processing of recyclable
materials collected from the Franchisors' customers, beginning with actual results in calendar year 2011.
It was agreed that the net revenues would be contributed to a reserve to fund one-time costs of future
diversion programs. As reflected in Table 3, the reserve amount decreased $120,074 to net deficit of
$19,825. The decrease in the reserve is due to an increase in processing costs per ton ($201.30 in 2014
vs. $188.84 in 2013) from a combination of additional sorters to produce a cleaner product and
inflationary increases in other costs. Favorable commodity pricing per ton ($185.97 in 2014 vs. $177.54
in 2013) partially offset the cost increases. MSS reported it will be performing a review of its operations
in 2016.
HF&H Consultants, LLC 8 December 17, 2015
Franchisors of Marin Sanitary Service Section IV. Proposed Adjustment
Review of Marin Sanitary Service's 2016 Rate Application
Table 6: Reserve for Future Diversion Programs
Net Addition
Based on (Reduction)
Rate Year Financial Year to Reserve
2013
2014
2015
2016
Reserve Balance
2011
$ 232,707
2012
(85,153)
2013
(47,305)
2014
(120,074)
$ (19,825)
The next update to the reserve will be completed as part of the 2017 rate application process and will be
based upon 2015 calendar year results. Should the net positive value in the reserve exceed $250,000,
then the excess shall be used to offset one-time costs related to diversion programs approved by a
majority of the agencies comprising the Franchisors' Group. Should the net negative value in the reserve
exceed $250,000, the City or the Contractor may request a review of the actual costs and revenues of
providing the service at which time the Franchisors Group and Contractor have agreed to meet and confer
to determine a reasonable remedy to the Contractor.
HF&H Consultants, LLC 9 December 17, 2015
Franchisors of Marin Sanitary Service Section V. Rate Adjustment
Review of Marin Sanitary Service's 2016 Rate Application
SECTION V. RATE ADJUSTMENT
Rate Adjustment Factor
Based on a revenue requirement of $26,803,248 (Table 5, Line 12) and projected revenues of $25,378,663
(Table 5, Line 18) for the calendar year 2016, resulting from our recommended adjustments to MSS'
application, a 5.61% Rate Adjustment Factor has been calculated, effective January 1, 2016.
This rate increase of 5.61%, results primarily from:
• An overall net increase of 6.25% in operating costs for current services, primarily from:
o An increase in wages, benefits expense, and other operating costs.
• partially offset by:
o A decrease in costs of fuel to a steady decline in fuel prices.
o A decrease in disposal cost due to changing processing sites for organics.
The following table shows the components of the rate increase:
Table 7: Rate Adjustment Factor Components
2016 Component Percentages
Wages 1.64%
Benefits (including workers comp) 3.71%
Fuel & Oil (2.99%)
Disposal (0.88%)
Depreciation and Interest 0.84%
Maintenance 1.42%
Other Operating Costs(1) 2.51%
Subtotal Operations 6.25%
Revenue Surplus net of Franchise Fees (0.64%)
Rate Adjustment Factor 5.61%
(l) Includes profit and general & administrative costs (e.g., public education,
customer service, etc.) .
HF&H Consultants, LLC 10 December 17, 2015
Franchisors of Marin Sanitary Service Section V. Rate Adjustment
Review of Marin Sanitary Service's 2016 Rate Application
Survey of Comparable Rates
Attachment 3 shows the results of HF&H's survey of rates as of October 2015 for jurisdictions located
throughout the Bay Area. For the purpose of comparing the Franchisors' rates to other jurisdictions, we
have applied the recommended 5.61% Rate Adjustment Factor to the current Franchisors rates.
The Franchisors' residential rates for a 32 -gallon container (the most frequent residential service level)
range from $29.59 (LGVSD) to $39.50 (RVSD-N, Sleepy Hollow). The survey shows the Franchisors'
average residential rate for 32 -gallon service ($35.32 with RVSD-N included and $34.13 without) is in the
same range when compared to other Marin County jurisdictions. Of the 8 Marin County jurisdictions, 4
of the jurisdictions' 32 -gallon container rates are higher than the Franchisors' average and 4 jurisdictions
are lower. Attachment 4 graphically compares the Franchisors' residential rates for a 32 -gallon container
to one another as well as to the average of Marin County rates for similar service.
The Franchisors' commercial rates for a 3 cubic yard bin serviced 1 time per week (the most requested
commercial service level) range from $415.66 (Town of Ross) to $622.33 (RVSD-N). The average rate for
the Franchisors is $490.25, with RVSD-N and $446.02 without. The average rate is in the upper range
compared to the other three Marin County jurisdictions that have this level of service. One jurisdiction
has a higher rate and two jurisdictions have lower rates. Attachment 5 compares the Franchisors'
commercial rates for a 3 cubic yard bin serviced one time per week to the average Marin County rate and
all other jurisdictions' average rate for similar service levels.
As part of the 2014 consolidation of multiple agreements between the County and MSS, the County has
adopted a plan to unify rates for similar services throughout the MSS' County service area. This is a 5 -
year plan and the final 2016 rates are yet to be determined. For presentation in Attachments 4 and 5, we
have shown the average rates of MSS' County areas.
While the recommended rates compare favorably to those surveyed, we caution the Franchisors that this
survey is presented as an indication of the reasonableness of the resulting rates. They should not draw
conclusions from this information because rate comparisons are intrinsically difficult and often
misleading. This difficulty results from differences in issues such as:
1. The services provided;
2. The terrain in which the service is performed;
3. Disposal costs;
4. Rate structures; and,
5. Governmental fees (e.g., franchise fees, vehicle impact fees, etc.).
HF&H Consultants, LLC 11 December 17, 2015
This page intentionally left blank
Patty Garbarino
President, Marin Sanitary Service
September 1, 2015
Page 2
Waste Characterization Study 2014 and Diversion Working Group
In 2014, Marin Sanitary Service commissioned CalRecovery, Inc. to perform a quantitative
characterization of disposed waste delivered to the transfer station at Marin Sanitary Service. Loads
delivered to the Transfer Station by MSS rear loaders, roll -offs, and front loaders collection vehicles were
sampled and sorted.
Summary of Results
The two largest material types still disposed of by the residential and commercial sectors are organics
and paper (Table 1). Substantial percentages of food waste were identified in disposed residential
waste (29%), roll -off accounts of large commercial customers (39%), and commercial front loader
accounts (36%). Substantial concentrations of recyclable paper fiber (corrugated/paper bags,
newspaper, and mixed paper subcategories) were identified in disposed residential waste (13%), roll-
off accounts of large commercial customers (17%), and commercial front loader accounts (20%).
Contaminated paper, in many cases coated with wet food waste, comprised between 4% to 8% of the
residential, commercial roll -off, and commercial front loader disposed waste.
Table 1: Materials in Disposed Waste stream
CUSTOMER TYPE
Residential
Commercial
COLLECTION VEHCILE TYPE MATERIAL DISPOSED
Rear Loader Food waste
Roll -off
Commercial/Multifamily Front Loader
Residential Rear Loader
Commercial Roll -off
Commercial/Multifamily Front Loader
Food waste
Food waste
Paper Products
Paper Products
Paper Products
PERCENTAGE OF DISPOSAL
29%
39%
36%
13%
17%
20%
The residential focus group, in the rate structure analysis, revealed that the majority of customers value
MSS recycling and composting services and say they "recycle all they can". However, many still report
the "ick" factor (smells, mess, and pests) often prevents them from always placing food scraps in the
organics (green) cart. MSS will focus efforts on hands-on workshops that show customers how to avoid
issues like smells, dirty carts and fruit flies. Despite high customer awareness around curbside recycling
and organics services, a disconnect exists between what customers say they do and what they actually
do. This is evidenced in Figure 1 (materials in disposed waste stream that go to the landfill) which
shows that many easily recyclable and compostable items are still ending up in the landfill. Table 2
compares the 2008 study to the 2014 study. Another focus group finding from the residential sector is
that people are confused about paper/fiber recycling. Though the amount of paper being thrown away
has actually decreased from 28% to 17%, confusion remains around paper board items like cereal boxes
and glossy paper items like ads and junk mail. MSS will have more single material type education and
messaging in print, on the web and in social media campaigns and will be working with an Outreach
firm that specializes in behavior change campaigns using Community Based Social Marketing.
Page 3
DIVERSION WORKING GROUP
The MSS Diversion Working Group (DWG) was created to use the results of the Waste Characterization
Study performed by CalRecovery at the end of 2014, and to identify and develop projects that will
ultimately increase the recycling rates for the rate regulated services and programs at Marin Sanitary
Service and the non -rate regulated services at the Marin Resource Recovery Center. This will also aid in
helping our jurisdictions meet their Climate Action Plan goals and help the County of Marin reach its
diversion goal of 94%.
Identified Strategies:
1. The primary company strategy is to continue advocating source separation of materials in the
existing waste streams with a focus on organics and paper.
2. Collect additional materials (bulky items) that cannot be collected in curbside carts through
scheduled clean-up programs and have them processed through MRRC.
3. Completely separate wet organics from the commercial waste stream, allowing for the
processing of commercial "dry recyclable sort loads" inside MRRC.
4. Utilize new technologies to process the organics stream and/or recover the remaining difficult
to process recyclable materials.
The Diversion Working Group (DWG) is comprised of Managers and key staff from Operations, Outreach,
and Contract Compliance. Six (6) projects have been identified based on findings from the 2014
CalRecovery Waste Characterization Study that will focus on specific material streams for increased
recovery efforts. Meetings occur bi-monthly. Organics comprise the majority of the materials still being
disposed of by customers. Therefore, we believe that focused efforts on this stream will achieve two
goals: a reduction in GHG emissions (since organics are the largest contributor to greenhouse gas
emissions in a landfill), and increased diversion of these materials from the landfill into compost and
energy. Source separation will remain our primary strategy to collect recyclable materials to retain high
value and volume. Once maximum source separation is attained and organics are removed from the
waste stream, the resulting waste stream can be better analyzed to determine which technology would
be most appropriate for processing and recovering the remaining resources to increase recycling rates
and diversion.
Projects Identified:
1. Multifamily Organics (Food scraps/Yard waste) Pilot Study
a. Primary goals:
i. To increase participation in compost programs among Multifamily Dwelling tenants.
ii. To determine cost effective methods of outreach.
iii. To collect contaminant -free organic material.
iv. To study the cost impact of implementing a full scale organics program at MFDs.
b. Results:
i. Four outreach strategies were tested on 20 apartment buildings containing 185 units
tota I.
Page 6
4). Contaminants included plastic bags, plastic cups, plastic bottles, plastic to -go
containers, Styrofoam cups and egg cartons, milk cartons, and coffee cups.
c. MSS Recommendations:
i. Utilize the outreach methods and tools provided to Group 1. These included kitchen
compost pails, door to door outreach with tenant, stickers, signs, brochures, flyers,
and training programs for Property Managers and Tenants
ii. Rate implications and options will also be provided to MSS service areas with the 2016
rate application.
2. Commercial Food Waste to Energy (F2E)
a. Primary goals:
i. To increase tonnage collected by WASTE FOOD. WASTE MONEY.increasing participation in the program.
MAKE THE SWITCH AND SAVE
ii. To increase community outreach and
messaging about the importance of the
program.
b. Results:
2`
i. Targeted messaging was sent to all JOIN FOOD 2 ENERGY TODAY
potential customers beginning March
415.456.2601
2015. A press release in mid spring
resulted in coverage of the success of the program in two local newspapers, four on-
line news sources, and one State Renewable Energy magazine.
ii. According to focus groups conducted in 2014, face to face conversations is what
guides the behavior of this sector. The primary focus of Outreach is to increase
participation.
iii. At the end of 2014, there were 70 customers enrolled in the F2E program. With
increased outreach efforts, advertising, and referrals from garbage route drivers, this
number increased to 119 by June 30, 2015. Average tonnage per month has
increased from 3.5 tons per day in 2014 (six day per week collection) to 5.2 tons per
day by June of 2015.
Page 8
iv. Central Marin Sanitation Agency by the end of June 2015 was generating 16-18 hours
per day of their energy needs from food waste, biosolids and fats, oil and grease
collection (FOG).
3. Residential Organics (Food scraps/Yard waste) recycling
a. Primary goals:
i. To increase tonnage collected by increasing participation in the program.
ii. To increase community outreach and messaging about the importance of the program.
b. Plan:
i. Two new ad campaigns ("Make Every Crumb Count" and "Every Meal, Every Day, Every
Week: Compost") had targeted messaging to get customers to place food waste in
with the yard waste into the MSS green organics carts. Ads were also placed in the
Marin IJ, the Pacific Sun and the Marin Scope newspapers. Posters with messaging
were also distributed around the community and in schools.
Page 9
ii. All residential customers received information on what to place in the green cart
through a special compost newsletter with their bill.
iii. The website has been redesigned and contains more information on the importance
of this program, kitchen pail purchasing, tips for collecting food scraps in the home,
and a list of acceptable and non -acceptable items.
iv. Curbside composting workshops were implemented in 2015. The plan is to have one
per quarter. Customers are notified of the events through social media, the web, and
the distribution of flyers at public agencies and buildings.
v. In addition, the program is promoted at local events and on the MSS website.
vi. MSS will continue to partner with WMEarthcare (the compost facility at Redwood
Landfill), Zero Waste Marin, local non -profits and community groups on the promotion
of these organics programs.
vii. It was decided to forego food waste in green waste participation audits for 2015. 49%
of all organics routes are fully automated. Fully automated collection is much more
efficient and cost effective. The 2014 Waste Characterization showed an increase of
FW in the landfill despite high participation rates in 2013 (47%). Tonnage is not
correlating with participation though and the amount of food waste in the yard waste
is less than 3% on visual inspection. Outreach and effective messaging are the
strategies that the group feels will ultimately decrease the FW that is ending up in the
landfill.
4. Commercial "Dry loads" through MRRC
a. Primary goals:
i. To identify large commercial customers that have large volumes of "dry" materials
that cannot be collected in curbside carts and route them to MRRC for processing.
Page 10
For large commercial customers, dry loads may consist of items such as pallets,
cardboard, large plastic items, or other bulky items.
ii. To increase recovery of recyclable materials using current technology from this
customer base.
b. Plan:
i. MSS will begin coding customers by business type in Soft -Pak.
ii. Material mix will be audited through visual waste audits of the garbage stream.
iii. It is anticipated that approximately one third of all commercial bin customers would
qualify for inclusion in a dry load diversion program and that this could result in the
recovery of 25 — 30% more materials through manual sorting of dry loads.
iv. Work began early 2015 to identify this customer based on material mix from visual
waste audits. These customers will be "routed for diversion" through MRRC.
v. The rate implications for processing additional loads at Marin Resource Recovery will
be analyzed and presented to the MSS service area in spring 2016.
S. Processing at MRRC of bulky item loads from MSS curbside collection programs: Las Gallinas
Valley Sanitary District Pilot Program
a. Primary goals:
i. To determine the feasibility of implementing a curbside bulky item collection program
for residential customers in order to decrease illegal dumping of materials. The
chosen area for the pilot was Santa Venetia (LGVSD) with Monday -Thursday
collection days.
ii. Results from the pilot have allowed MSS to determine the following (Figure 5)
1. Cost of implementation: truck, driver time, outreach time and materials.
2. Cost of disposal and processing.
3. Types of materials collected.
4. Types of materials diverted.
Page 11
iii. Overall, participation was 29% with 35.25 tons of materials collected. 82% of these
materials were diverted from the landfill. Materials included scrap metals, rigid
plastics, mattresses, wood, TVs and e -waste.
Figure 6: Bulky Item Materials (tons/% of stream)
Metal Rigid Mattresses Wood Other TV's E -
Plastic waste
b. MSS Recommendations:
i. To add scheduled curbside bulky item collection programs in every service area.
Programs currently offered in some jurisdictions include scheduled curbside clean -
Page 12
ups of extra yard waste, recycling, and garbage; on-call bulky item collection; and a
hybrid of these two programs.
ii. Collecting bulky items on a scheduled basis in all jurisdictions may help alleviate
illegal dumping and will lead to higher participation in these programs.
iii. Table 6 below compares the current curbside collection programs in our contracts for
unincorporated areas of Marin County (Ross Valley North, Ross Valley South, and
unincorporated central Marin) to the LGVSD pilot. Distributing flyers to individual
customers the week before collection lead to a significant increase in participation;
however, this method of outreach is also time consuming and costly
Table 6: Comparison of Curbside Collection Programs
iv. Rate implications will be provided to MSS service areas with the 2016 rate application
6. Infrastructure: Developing and utilizing new technologies and equipment to process the
organics stream and/or to recover the remaining difficult to process recyclable materials.
a. Two new technologies look very promising and have been approved to fit within the land
use footprint of MSS.
i. Dry Anaerobic Digestion could be used to process the more contaminated organic
fraction primarily from multifamily dwellings serviced by MSS. The biogas derived from
this process could be used as an energy source or a fuel source.
ii. Biomass Conversion technology could use the non-compostable wood waste as
feedstock for energy generation that could take MRRC off the grid.
b. The Transfer Station will need to be rebuilt in the near future and we believe it could be
better utilized by incorporating new technologies in the existing footprint. MSS will
continue to explore these and other technologies in the coming years and will work to find
a cost effective strategy that will result in more diversion of resources from the landfill.
Page 13
Public Outreach and Zero Waste Programs
OUTREACH AND EDUCATION SERVICES
At Marin Sanitary Service, community involvement through education, outreach and alliance building
is our greatest passion and supports our ultimate goal of zero waste. Our duty is to engage and educate
our community in how they too can be part of the solution. Outreach is the most important aspect in
reaching our goal of zero waste. In order to provide more hands-on training to customers, MSS now
employs five full-time Recycling Programs Coordinators each dedicated to a customer type in addition
to a full time Household Hazardous Waste Coordinator. Their contact and program specialty is listed
below.
All Service Area residential and commercial customers have received multiple mailed communication
pieces informing them of MSS programs and services. These mailings have educated the public on zero
waste programs; proper recycling and composting practices; the hours and times of operation at all
facilities; proper disposal of household hazardous waste; and Mandatory Commercial Recycling (AB
341). Materials were also distributed to public libraries, city/town halls, police and fire departments,
Chambers of Commerce and community bulletin boards to reach more of the community. With the
addition of Outreach Staff, MSS has been able to do more hands-on education of customers at events
and individually with customers distributing more printed educational materials. The Figures below
show the various Outreach and Communications activities. Outreach activities for the first six months
All Service Area residential and commercial customers have received multiple mailed communication
pieces informing them of MSS programs and services. These mailings have educated the public on zero
waste programs; proper recycling and composting practices; the hours and times of operation at all
facilities; proper disposal of household hazardous waste; and Mandatory Commercial Recycling (AB
341). Materials were also distributed to public libraries, city/town halls, police and fire departments,
Chambers of Commerce and community bulletin boards to reach more of the community. With the
addition of Outreach Staff, MSS has been able to do more hands-on education of customers at events
and individually with customers distributing more printed educational materials. The Figures below
show the various Outreach and Communications activities. Outreach activities for the first six months
Page 14
of 2015 is already twice (Figure 7, 228 activities) what it was for the entire 2014 year (Figure 8, 120
activities). Community meetings include but are not limited to Chambers of Commerce, Climate Action
Planning committees, School Green Teams, Home Owner and Neighborhood Association meetings.
Community newsletters are non -MSS publications and include City and Town Manager electronic
newsletters, school newsletters and neighborhood association print and online newsletters.
Figure 7: Communications and Community Outreach by Type Q1-2 2015 (not including Schools or Mandatory
FIRST ANNUAL CUSTOMER APPRECIATION DAY
On Sunday, April 19, 2015, MSS held the first
annual customer appreciation day. The event
was advertised in the biannual newsletter that
was directly mailed to each customer, in local
print and online newspapers, and via social
media. MSS anticipates double the turnout
next year. Figure 9 shows the number of
participants at each event. The event officially
started at gam; however, excited customers
started lining up before Sam and the very last
of the compost was scooped at 2:15.
Customers had the opportunity to participate in a tour and/or a composting workshop. The 45 minute
tour included the Marin Recycling Center, the Marin Resource Recovery Center, the Marin Household
Hazardous Waste Facility and the animals at "Flying Can Ranch". During the 30 minute composting
workshop, customers learned how to successfully participate in the organics "green cart" program and
received a kitchen pail and instructions to take home. The biggest draw of the day was the free compost
giveaway (Table 8). MSS advertised no more than 64 gallons of compost per customer. On average, the
amount given away was 76 gallons per customer. The company received several letters, emails and
phone calls thanking us for the event.
PLANET SCHOOL PROGRAM AND TOURS
At MSS, our goal is to educate, equip and empower school
districts, individual schools and/or classrooms to develop
comprehensive waste reduction and recycling plans. The 4R
Planet School program is twofold. The first is our onsite
program which includes tours of the MSS recycling facilities
and lessons on the Four R's in the MSS Environmental
Classroom. Second is our in school program which includes
hands-on training, waste diversion program assistance, and
customized educational lessons. All of these activities are led
by our Education & School Recycling Programs Coordinator.
MSS entered into a series of conversations and strategy sessions with Mary Jane Burke and her staff at
the Marin County Office of Education. The issues and obstacles of recycling and composting were
discussed and a report card was generated for each school showing service levels and diversion rates.
The results of these report cards will be distributed in the 2015-2016 school year in an attempt to
decrease waste and increase recycling and composting at each school. In addition, MSS is collaborating
with Zero Waste Marin on a pilot study to measure outreach techniques that result in behavior change.
At the start of this school year, every school was hand delivered information on our 4R Planet School
Program, tours, and the services we offer including the composting program. Figure 10 shows the types
of outreach that were performed in 2014-2015.
Figure 10: School Outreach by Type (2014-2015)
The following services are provided to schools at no cost:
Onsite evaluation of recycling needs.
Waste audits to help schools know what recyclables are still being thrown in the trash.
Signage, stickers, and curbside containers to help with source separation.
Page 17
Educational lessons and assemblies on the 4R's.
Source separation trainings.
Green team guidance on waste reduction planning.
Educational tours of MSS recycling facilities.
Lending library of resources: books, DVDs, binders with lesson plans that meet California
curriculum standards.
❑ Online resources: sample letters, lesson ideas, recycling procedures and more.
MANDATORY COMMERCIAL RECYCLING (AB 341)
Mandatory Commercial Recycling (AB 341) has been in effect since July 2012. This law calls for recycling
75 percent of California's solid waste by 2020. This is a significant increase above the 50 -percent,
statewide recycling mandate established in AB 939, which was passed in 1989 and has been the primary
driving force for improving recycling in California. Approximately 60% of materials disposed of in
landfills are from the commercial sector.
It is important to note that AB 341 is a continuation of an effort by the state to reduce greenhouse -gas
(GHG) emissions, as required by AB 32, which became law in 2006. Simply stated, recycling reduces
GHG emissions, and through the implementation of AB 341 will make a significant reduction in these
emissions.
Cal -Recycle meets annually with MSS and the jurisdictions we serve to assess how outreach, education
and monitoring is taking place in Marin County. They constantly comment that we are way ahead of the
curve in getting compliance. 94% of all commercial and apartment customers were in compliance at
the end of 2013.
Educating businesses about recycling is a dynamic and ongoing process. MSS has two Commercial
Recycling Coordinators working with businesses and apartment buildings. In addition, there is a full
time Commercial Recycling Coordinator dedicated to increasing participation in the two organics
programs (Commercial Food Waste to Energy (F2E) and Commercial Composting) and a full time School
Recycling Coordinator. New businesses and their employees are educated about recycling requirements
and opportunities. Existing businesses and their employees are monitored and encouraged to divert
even more resources from the landfill.
Waste audits are part of the monitoring process and help to identify waste types and volumes of
divertible materials in the disposed of waste stream. Drivers performed over 1100 on-site visual audits
of commercial landfill carts. Customers with 50% or more of divertible material were referred to the
appropriate Outreach Staff for waste stream assessments. Waste stream assessments are on-site
assessments of the waste stream (total flow of materials generated) and recycling potential of an
individual business, institution, or household. From this assessment, service and education needs are
determined and a waste reduction plan is developed and implemented. Customers who have been
identified to be non-compliant with AB 341 receive a phone call, followed by a letter that is followed by
an onsite waste assessment. If the customer remains non-compliant after 90 days, they are referred to
Page 18
the City, Town, or County jurisdiction for follow-up. Collaboration between the public and MSS is key
to the success of this law. The findings are in line with Waste Characterization Study conducted by MSS
in November 2014.
Out of 2,215 commercial businesses, 84% (1,866) subscribe to at least one recycling service and 14%
(316) are not required under AB 341 to have recycling services. At the end of June 2015, only Larkspur
and San Rafael still have non-compliant businesses (Table 9). Of the 737 Multifamily Dwellings
(apartments buildings with five or more units), only five percent (38) remain non-compliant (Table 10).
All are in San Rafael. Of the jurisdictions MSS serves, only Fairfax has a Mandatory Commercial Recycling
Ordinance that requires ALL commercial businesses and multifamily dwellings to recycle and/or
compost. This has been very successful in increasing diversion and participation in MSS recycling and
organics programs.
Having specialized Recycling Program Coordinators has allowed MSS to streamline and individualize
outreach efforts for the variety of customers in the commercial sector. Assessments of the customers'
waste stream is then used to tailor a recycling program that best suits the business type. The Operations
staff and Outreach staff use this data is to create a comprehensive diversion plan. Once recycling and/or
organics services are established, the teams work to "right size" the garbage service which often results
in decrease in the overall "resource hauling" bill. There have been 1,809 different outreach contacts
for Q1-2, 2015. Details are shown below in Table 7. Figures 11, 12 and 13 show the break outs by
customer type.
MANDATORY COMMERCIAL ORGANICS RECYCLING (AB 1826) UPDATE
In October of 2014 Governor Brown signed AB 1826 Chesbro (Chapter 727, Statutes of 2014), requiring
businesses to recycle their organic waste beginning April 1, 2016, depending on the amount of waste
they generate per week. This law also requires that on and after January 1, 2016, local jurisdictions
across the state must implement an organic waste recycling program to divert organic waste generated
by businesses, including multifamily residential dwellings that consist of five or more units (please note,
however, that, multifamily dwellings are not required to have a food waste diversion program). Organic
waste means food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and
food -soiled paper waste that is mixed in with food waste. This law phases in the mandatory recycling of
commercial organics over time.
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April 1, 2016: a business that generates eight cubic yards or more of organic waste per week
January 1, 2017: a business that generates four cubic yards or more of organic waste per week
January 1, 2019: a business that generates four cubic yards or more of commercial solid waste
Summer/Fall 2021: If CalRecycle determines that the statewide disposal of organic waste in
2020 has not been reduced by 50 percent of the level of disposal during 2014, the organic
recycling requirements on businesses will expand to cover businesses that generate two cubic
yards or more of commercial solid waste per week. Additionally certain exemptions, previously
discussed, may no longer be available if this target is not met.
Issues and Local Government Effects
Unlike AB 341 in which volumes of municipal solid waste are the criteria for compliance, AB
1826 uses volume of organics generated as the criteria. The only way to know how much of the
waste stream is comprised of organic materials, a detailed waste audit would need to be
performed. This is a time consuming and costly process.
Unlike AB 341 in which the hauler can easily identify customers, the administrative burden of
complying with this law is on local government.
Self -haul allowance is problematic unless self -haulers are held to the same environmental
health and safety standards as haulers and the material is hauled to a designated and permitted
processing facility.
Multifamily units that subscribe to landscaping services must be tracked and monitored by local
government. Landscapers are self -haulers.
Suggested solution
Creation of a Mandatory Commercial Recycling and Organics ordinance that makes identification of
customers easier, contains a mechanism for enforcement, and allows MSS to educate, monitor and
report progress to the jurisdictions we serve. MSS would be happy to coordinate with each
jurisdiction to develop an ordinance that meets all State recycling and organics laws and helps meet
city and town climate action plan goals for green house emission reductions and diversion. For
more information on this law, visit htti)://www.caIrecvcle.ca.gov/Recvcle/Commercial/Organics/
Page 22
Operational Improvement Plan
In 2012, MSS underwent an extensive audit of its collection operations. From the results of the audit,
a five year Operational Improvement Implementation Plan was developed. This ongoing plan will lead
to the following:
Increased staffing and operational improvements.
Technology changes and upgrades to the existing sorting infrastructure.
Enhanced outreach programs
The overarching goal is to efficiently increase diversion rates by introducing new programs and
technology in a cost effective manner to keep rates affordable to the MSS rate base. MSS is now two
years into the implementation of this efficiency based plan. Accomplishments to date include:
Implementation of routing efficiencies including new routing software, continued replacement
of rear loading trucks with more efficient fully automated side loaders, and route
consolidations.
Reduction of routes while sustaining high service levels.
Route supervision and auditing which have resulted in the retrieval of lost revenues.
New Diversion Working Group established in 2015 to look specifically at all emerging diversion
opportunities.
ROUTING AND AUDITS
Route Consolidation: A new automated garbage truck route was established in San Anselmo and Ross
Valley North. This increase in efficiency enabled MSS to eliminate one full-time position. The new
automated truck, with a single driver, is able to do the work of what was once done by two employees.
The use of fully automated collection vehicles will be expanded in the coming years.
Audit Results:
Account and Service Audits: Account audits determine if customers are being billed properly
for the service they receive. Service audits are to ensure that customers have the correct
carts/bins on site that MSS has recorded in the Soft -Pak data base. Audits are performed on an
ongoing basis for garbage, recycling and organics routes. Another goal of these audits is to
determine the feasibility of further implementing fully automated routes.
o Service Not Billed: 365 accounts were not being billed for the services being provided.
Letters were sent to the residences to inform them to call and set up an account to
continue receiving service. 271 accounts have resumed service after receiving the
letter.
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No Service: 303 accounts did not have any service. Letters were mailed to these
residences to inform them of the services offered by MSS. 88 customers have resumed
service after receiving the letter.
Distance: Standard base rates exist for curbside collection of garbage, recycling and organics.
For carts not placed at the curb there is an additional fee for collection (distance fees). 267
accounts were identified that had been receiving distance service at no charge. The distance
was measured and letters were mailed to the customers giving them the option of either
bringing the carts down to the curb side or paying the charge for distance. Of the 267, 33
qualified to receive onsite collection (distance) at no charge due to a disability and have a
disability waiver noted in their account, 27 are now placing their carts at the curb to avoid the
distance fees and 48 did not respond at all. All others have agreed to the distance fees for
onsite collection.
Set -Out Rates: Set out rates are used to determine participation in programs. Residential
Organics, Recycling and Garbage routes were audited by counting the number of carts put out
for service. Residential collection is once per week for all three services. A one week snap shot
yielded the following results.
At the end of April 2015 MSS purchased RouteSmart, a route optimization and balancing software
program, and began to aid the Operations Department in furthering our efficiency goals and
maintenance of collection routes. In May a designated server was set up and a training and
implementation plan was established. This will take place over a five month period and is expected to
be completed in November 2015. Phase 1 began in June 2015 and included:
Purchase of the program and a dedicated RouteSmart program server.
Data validation and cleanup in the main Customer Service Program concentrating on
street/address details.
Geo -coding of all street data.
Review of collection route attributes including stop time per collection type, posted speed
limits, route start/stop times, truck & cart capacity, and collection location.
Tablet Implementation:
In May 2015, MSS rolled out a new program utilizing Samsung Tablets
to run routing software inside the route trucks. A total of 20 tablets are
currently in use. Tablets were initially trialed on roll -off routes then
expanded to cart delivery and commercial recycling routes. There are
many benefits of using the tablets; however the two most important
are: 1) the automated recording of collection data and 2) the ability to
properly record and measure route productivity. The tablets track all
work orders and route stops and automatically time stamp all pick-ups
ensuring timely and efficient service to our customers. The tablets
eliminate the need to manually enter this information into our
computer system and also enabled the Company to go paperless for
these routes. Prior to this, each driver received a route list that could
be one hundred or more pages in length. Not only do the tablets contain all the information contained
in the printed route list, they also enable the driver to enter route notes directly into each customer's
account, take pictures to document blocked or overloaded containers, and sequence new stops they
may have on their route. These notes contain useful information that help customer service
representatives to give real time information to our customers. Next steps will be to add the tablets to
the Residential Automated Routes. The use of these tablets will continue to help streamline MSS
operations and simplify the record keeping needed to ensure routes are run efficiently.
Page 25
Focus Group and Rate pilot: Implementation of key findings
The Franchisors Group engaged HF&H to review and revise the current disposal based rate structure in
order to investigate converting to a structure in which charges for all services are outlined (a materials
management structure). Focus groups were held for single-family residential, commercial, and
multifamily tenants and property managers/owners at the end of 2013 and beginning of 2014. After
analysis of the data, the group decided to proceed with a pilot for the commercial and single-family
residential customers only.
Based on findings from the focus group and the rate pilot, the following was presented to the
Franchisors' Group and was implemented in 2015. New service descriptions have been added to the
bill to help customers understand what services are being provided as part of the monthly rate. A
common misconception gleaned from all of the focus groups was that MSS sorts through the garbage.
To help dispel this thought and reeducate customers, "garbage service" has been replaced with "landfill
service" to help show customers the final destination of materials in these carts/bins. MSS will track
service changes for 6 months and assess the impact of the new messaging and billing format on service
levels. Behavior change will be monitored and presented to the FG in the fall. In addition, MSS will
investigate costs and a time frame for changing the commercial billing system to a credit based system
as tested in the pilot study. Research findings will guide a larger conversation on the prospect for a new
commercial rate structure, credit based system, and local ordinances for mandatory recycling and
organic services for all service sectors to increase diversion. Changes could be adopted by 2016.
RESIDENTIAL CUSTOMERS
This sector received a reformatted bill that now shows all services presented in a "bundled rate" for one
low cost. In addition, they received a flyer with the bill containing information on saving money by
reducing, reusing, recycling and composting. Customers are now offered extra recycling split carts for
a nominal monthly fee. Additional yard waste carts are already offered for a nominal monthly fee. Final
approval on the new messaging and billing format was approved by all jurisdictions in early March 2015.
For this reason, the revised bills and messaging rolled out to all customers beginning with April 2015
bills. Each single-family residential customer receives a quarterly billing statement (on month in arrears,
present month and one month in advance).
COMMERCIAL CUSTOMERS
This sector received a reformatted bill and enhanced messaging based on focus group findings and
feedback on direct cost savings by participating in recycling and composting programs. Beginning 2015,
two organics programs were offered for the same charge to all commercial customers. At this time,
there is no separate charge for organic service at multifamily dwellings. Final approval was obtained
from each jurisdiction before the new messaging, organic service fees and billing format was rolled out.
The new format and information was formally rolled out to all commercial businesses and multifamily
units in April 2015. Commercial customers receive monthly billing invoices for services provided the
previous month.
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BILLING SOFTWARE ANALYSIS
Background:
MSS tested a credit based billing method for commercial customers developed by HF&H. In this credit
based system, all commercial customers would receive a substantial increase in the current rate for
garbage collection (20% was tested) and would receive a credit of up to 30% for diverting materials from
the landfill (at least 25% of the overall waste generation). This credit based system made the following
assumptions:
Customers would subscribe to MSS containers (carts/bins) for ALL recycling, organics and
garbage service.
All recycling and organics would be full and contaminant free and placed at the curb according
to the subscribed collection frequency.
MSS performed a review of available waste management billing and operations software programs that
would allow incorporating a credit based billing system to incentivize commercial customers to reduce
"landfill gallons" and increase "diversion gallons". The following systems were reviewed:
Waste Accounting Management (WAM): This system currently has no plans to offer a credit
based system but would be willing to investigate developing something.
Terra Trash: At this time, they are not interested in adding this feature.
Tower: This system currently has no plans to offer a credit based system but would be willing
to investigate developing something.
Desert Micro: This system currently has no plans to offer a credit based system but would be
willing to investigate developing something.
Soft -Pak: MSS uses this software for customer service, billing, routing, and scale soft -ware
system currently. Soft -Pak is willing to develop a credit based system.
Commercial customers reported that a credit based system would incentivize them to divert materials
from the landfill and reduce their overall waste generation. This customer base also reported being
unaware of all the recycling services offered my MSS (cardboard, paper, bottles & cans, organics). Many
reported that they self -haul, back -haul, donate or sell their recyclables but would be interested in
subscribing to MSS recycling services to help the County of Marin achieve a high diversion rate and to
help offset the costs of processing recyclables and organics.
Analvsis
Many of the modules MSS relies upon on for daily operations do not interface with the software
platforms from the other companies and would need to be purchased from other vendors assuming
they exist. For this reason, only our current software provider, Soft -Pak was consulted regarding
development of a custom billing program. Though initially conversations with Soft -Pak about this
proposal were optimistic, the company announced at its user conference in September, 2015, that it is
moving away from custom programming and is now advocating standardized programming to their
customers. The reason for this is threefold: 1) it keeps costs down, 2) it enables Soft -Pak to create
Page 27
standard software that is more detailed by having the base program include all of the most popular
customer demands rather than custom software fixes, and 3) allows programmers to better serve the
customer base. Implementation of this type of credit based system would have the following impacts:
MSS would not be able to participate in "global Soft -Pak system updates" and would instead
require more complicated and time consuming system updates.
MSS and Soft -Pak have expressed concern about effect on the main database due to the
custom programming. It is unknown how future upgrades to the calculator and entire dataset
can be handled.
MSS anticipates the following staffing needs:
o At least three fulltime staff including one-two dedicated customer service
representatives (CSR) and an additional full time route auditor and pick-up truck.
o RouteSmart, the MSS route optimization system is heavily dependent on accurate and
up to date service level data. Frequent changes to service levels could have a
negative impact to routing solutions offered by this program. To ensure the accuracy,
this system would require a dedicated fulltime staff.
o Increased program administrative needs:
Monitoring service level changes
• Verification of documentation
Verification of billing
Increased communication needs between CSR, dispatch, drivers, route
supervisors, and outreach staff regarding changes required i.e. service
location issues
Increased training needs
Costs could exceed $200,000 per year to message, monitor and manage this
program.
Recommendations:
At this time, MSS recommends continuing with the current billing system in which commercial
customers pay for garbage, recycling is bundled into the "garbage" rate, and organics service is offered
at a rate 30% less than the garbage rate. Increased efforts are underway to provide more messaging
on service offerings and more hands-on outreach and education to commercial customers.
Monitoring of the effects of these efforts will be reported annually to all MSS service areas.
RATE SHEET AND FEE STANDARDIZATION
MSS has begun the process of standardizing the rate sheets for all jurisdictions to provide consistency
across service areas. The new format will be a matrix layout with separate sections for service sectors
(single family residences, multifamily dwellings, and commercial businesses). The Company has also
begun the process of standardizing fees across all service areas for items such as lock fees, steam cleans,
and resume service fees. Preliminary plans were presented at the Service Area meeting on May 12,
2015.
Page 28
Background on Diversion Calculations
DIVERSION VERSUS RECYCLING RATES
There is confusion about diversion rates which are used by the County of Marin to gauge compliance
with State mandates such as AB 939 and recycling rates, which are used by haulers to determine what
amounts of materials are recycled or composted curbside for residential and commercial customers.
Both methods help measure success/compliance, however, they use different calculation methods.
Overall, the goal is to reduce waste and send less waste to the landfills by recycling and composting
more materials.
Jurisdictional diversion rates are calculated based on a disposal -based indicator which is a per capita
disposal rate expressed as pounds per person per day (PPD). This disposal rate uses two factors: a
jurisdiction's population and its disposal tonnage, as reported by disposal facilities. The jurisdictional
diversion rate focuses on a list of programs that includes but is not limited to recycling, composting,
household hazardous waste, and other source reduction programs such as purchasing policies,
xeriscaping, and material exchange programs (thrift shops, yard sales, reuse stores). The disposal target
for each jurisdiction or regional agency was calculated by averaging the waste generation over a period
of four years (2003, 2004, 2005, and 2006), which was determined by CalRecycle to be the equivalency
of the 50% AB 939 landfill diversion rate. The disposal target for the Marin County was calculated to be
7.6 PPD. For 2013, the Marin County Jurisdictional Diversion rate was 74% (down from 75% in 2013)
with a population disposal of 4.0 PPD (up from 3.8 PPD in 2012). Information on the source reduction
reporting element can be found at the link below.
(htto://www.calrecvcle.ca.jzov/12central/PARIS/Codes/default.htm#Reduction)
The ton -per -ton disposal and recycling rates of the various haulers in Marin, including Marin Sanitary
Service, all contribute to the 74% diversion rate. For the purpose of this report, only tonnages for
materials collected and processed under the Franchise Agreements are used and are presented going
forward as "Recycling Rates". The Franchised Programs are discussed under Zero Waste Programs.
Other tonnages from residential and commercial self -hauling, construction & demolition debris box
rentals, and a host of other non -franchised programs within the County are not accounted for in this
annual report but are reflected in the Jurisdictional diversion rate that is reported by MSS to the
Marin Hazardous and Solid Waste Joint Powers Authority (JPA), who in turn reports this tonnage
information to the State of California. Table 12 shows the tonnage collected for the entire MSS Service
Area. The overall recycling rate has increased slightly from Q2, 2014 to Q2, 2015. Jurisdictions all over
the Nation are seeing similar trends in Recycling Rates partially due to the "evolving ton". There are
fewer newspapers in print, less glass, lighter weight metals and plastics, more film pouch packaging
compared to 10 years ago. On average, it takes 25% more plastic by volume to make the same ton
today. Though more volumes of materials are being recycled and processed, this shift combined with
less overall disposal makes the recycling rates appear to be unchanged or even decreasing according to
an EPA Webinar Series on "The Changing Waste Stream", November 13, 2014.
Page 29
Residential Service Levels
All residential customers are offered three services as part of the bundled "resource hauling" rate. This
includes a gray "landfill" (garbage) cart, a split body recycling cart and a green organics cart. The charge
is based on the size of the landfill cart. At the end of June 2015, there were 30,487 Residential
customers signed up for service with MSS. The number of 20 -gallon subscriptions continues to increase
annually while the number of 64 and 96 gallon subscriptions continue to decrease (Table 13). Table 14
shows the subscriptions to organics and recycling services. These numbers are only for MSS supplied
tipper carts and do not reflect customer owned cans or bags that contain extra yard waste and/or
recycling. In 2014, MSS introduced a larger 95 -gallon split cart for recycling and a smaller 35 -gallon
green cart for organics. There is a nominal fee for the rental of additional MSS tipper carts for organics
and recycling. MSS encourages the use of company owned carts to increase collection efficiency,
decrease damage to customer owned containers, and increase safety of our drivers by preventing risk
of injury due to the manual moving and emptying of customer owned containers.
Commodity Prices
All commodity prices have decreased significantly in 2015, most notably for PET#1 bottle shaped
plastics, #3-7 mixed rigid plastics and glass. This trend is expected to continue.
Prices for cardboard, newsprint, mixed paper and office paper were similar in 2013 and 2014. Except
for a slight increase in the price for mixed paper, the price for all other paper fiber products has
decreased in 2015. This trend is expected to continue.
Household Hazardous Waste (HHW) Drop-off Program
Though not an annual reporting requirement, we felt it worthwhile to show the results of this
important diversion service. The Marin Household Hazardous Waste Facility tracks participants by city,
town, and unincorporated Marin. Ross Valley -South, County of Marin, and Las Gallinas Valley Sanitary
District are grouped in with other unincorporated areas south of Novato including West Marin. Ross
Valley -North customers are included in the totals for Fairfax and San Anselmo. From July 1, 2014
through June 30, 2015, 18,577 customers in the MSS service area participated in the HHW drop-off
programs (18,339 residential and 238 commercial participants). Table 11 provides the total number of
participants by customer type in each city/town.
Customer Service Call Logs
RESIDENTIAL AND COMMERCIAL/MULTIFAMILY NEW STARTS FOR 2014
In 2014, there were 2,411 calls to start new Residential service. This increased by 6% over 2013 (2,250
calls). All new customers received the Residential Service Guide that explains MSS Curbside collection
services and programs, debris box rental and document shredding; Marin Resource Recovery Center
drop-off information; Marin Recycling drop-off and buy-back information; and Marin Household
Hazardous Waste drop-off information as well as the HHW Curbside Collection Brochure. Additionally,
there were 183 calls to start new Commercial/MFD service in 2014 compared to 179 in 2013 (0.4%
increase).
RESIDENTIAL AND COMMERCIAL/MULTIFAMILY CUSTOMER COMPLAINTS
The total call volume increased 32% from 2013 (46,319) to 2014 (68,423). However, the majority of calls
are due to service change requests, inquiries regarding what can and cannot be recycled/composted,
and questions regarding billing. We are proud to report that there are minimal complaint calls from the
customers we serve. Complaint calls have decreased by 2% from 2013-2014 (Table 16). The majority
of complaint calls were for missed collections and containers that were broken. In most cases, the
drivers were able to empty the missed containers on the same service day or the next business day. All
broken containers were either repaired or replaced.
Table 16: Complaints by Type by Service Area 2013-2014
All accidents and injuries are investigated in an interactive process with the employee to determine
what factors caused the event. If it is determined that changes to equipment, procedures, or collection
location could prevent a recurrence, corrective action is taken whenever possible. If refresher training
is needed, it is addressed with the entire department. Any claim of damage is investigated immediately
by supervisors and the safety administrator. If the Company is liable, restitution is made to the
owner/customer by either repair at the Company's expense or payment to the owner/customer. Liable
automobile damage is repaired by a reputable, local business and a rental is provided if needed, or
payment is made if the owner/customer prefers.
In 2014, there was a 49% decrease in all reportable injuries and accidents from 2013 totals. Details are
shown in Table 17 below.
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval
by the City Council. Save staff report (including this cover sheet) along
with all related attachments in the Team Drive (T:) 4 CITY COUNCIL
AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT -
AGENDA TOPIC]
Agenda Item #
Date of Meeting: 1/4/2016
From: Cory Bytof
Department: City Manager
Date: 12/17/2015
Topic: ANNUAL RATE SETTING FOR MARIN SANITARY SERVICE REFUSE RATES
Subject: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ESTABLISHING MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE FOR
REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES, TO BE
EFFECTIVE RETROACTIVELY TO JANUARY 1, 2016
Type: ® Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Other:
APPROVALS
® Finance Director
Remarks: approved
® City Attorney
Remarks: LG -Approved 12/23/15. "Exhibit C" to the Resolution is presented as Attachment
A. Please remember to attach the Exhibit to the final Resolution.
❑ Author, review and accept City Attorney / Finance changes
Remarks:
® City Manager
Remarks:
FOR CITY CLERK ONLY
File No.:
Council Meeting:
Disposition: