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Home My WebLink AboutMS Restatement of Collection; MSScrrrOF Agenda Item No: 5, a n. Meeting Date: October 1, 2012 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: MANAGEMENT SERVICES Prepared by: Stephanie Lovette, Economic Development Manager; Jim Schutz, Assistant City Manager City Manager Approval SUBJECT: RESOLUTION APPROVING THE SECOND AMENDMENT TO THE "AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE" BACKGROUND: Marin Sanitary Service (MSS) provides refuse hauling and recycling services in numerous areas of Marin County including within the City of San Rafael. The services within our City are pursuant to a Collection Agreement, also known as a Franchise Agreement. The Franchise Agreement outlines the services that must be provided by MSS and a rate setting methodology. At this time, MSS and the City desire to amend the Franchise Agreement. This report will provide information on the proposed amendments including zero waste and rate stabilization initiatives. If approved by the Council, these amendments will provide the basis for the public hearing on the 2013 annual rate adjustment. This public hearing is planned to occur in January 2013. The "Background" section of this staff report will cover three areas: 1) background information on the Franchise Agreement with Marin Sanitary, 2) a brief review of the process leading to the staff recommendations, and 3) the environmental context for MSS services in San Rafael. Franchise Aareement between Citv of San Rafael and Marin Sanitary Service California cities are allowed to regulate local refuse and recycling services under Article XI of the California Constitution and the California Public Resources Code and to collect a franchise fee. The City of San Rafael has a Franchise Agreement with MSS for refuse collection and recycling services. The Franchise Agreement sets forth the services to be provided by MSS, the rate setting methodology and other terms. The City and MSS first entered into a written agreement in 1966. The most recent amendments to the Franchise Agreement occurred in September 2001 with the "Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin FOR CITY CLERK ONLY File No.: 4-1 — 3 - 3 -3L— Council Meeting: to /I /1 Vi Z Disposition: Z, (r( 10, U : l 4 -.? Z SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pacie: 2 Sanitary Service" and in March 2005 with the "Amendment to Refuse and Recycling Collection Agreement between Marin Sanitary Service and City of San Rafael." Therefore, the actions of this staff report would be the Second Amendment to the "Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service." Several of the surrounding cities and special districts also have contracts with MSS that utilize a similar rate setting methodology. Therefore, the cities of San Rafael and Larkspur, Marin County (including Ross Valley South and other areas of Marin County), the Town of Ross, and the Las Gallinas Valley Sanitary District have joined together in a Franchisors' Group to share information and reduce costs. For example, one such cost saving element is that the Franchisors' Group entities work together so that a single annual rate review report is prepared rather than each jurisdiction requiring a separate report. Process of the Franchisors' Grouo During the recent annual rate reviews, including the City Council meeting of January 17, 2012, various issues have been raised by the City Council and community that relate back to the Franchise Agreements and the rate setting methodologies. As it had been some time since the Franchise Agreement had been amended, the San Rafael City Council directed staff to work with the Franchisors' Group and analyze certain specific issues and also work with MSS to examine if any changes need to be made. As an example, the Council asked about the transparency of recycling revenues. On March 19, 2012, the City Council approved a professional services agreement with HF&H Consultants for work on a refuse rate methodology review for the Franchisors' Group. Among the objectives of HF&H's work were: minimize year to year fluctuations in rate adjustments, anticipate future costs and managing rate adjustments to minimize fluctuations in rates, achieve transparency and industry standard pricing of transactions, and provide incentives for MSS to reduce costs and for residents to reduce waste generation. The Franchisors' Group designated a subcommittee, made up of staff from the City of San Rafael and the County of Marin, to meet with MSS and negotiate any amendments to the Franchise Agreement. The subcommittee, with the assistance of HF&H, met with MSS numerous times from June through August 2012. It should be noted that, due to the nature of the Franchise Agreement, the franchising agencies cannot impose conditions and changes but rather any amendments must be approved by both parties. Staff would like to acknowledge the consideration of MSS during this negotiation process as much was accomplished over a relatively short period of time that would not have been if not for the transparency and cooperation of MSS. As the meetings were taking place this summer, staff reported out regularly to the City's Sustainability Subcommittee, the full Franchisors' Group, and through the quarterly Climate Change Action Plan community meetings. The "Analysis" section of this report will illustrate the resulting recommended amendments to the Franchise Agreement based on this summer's discussions. Environmental Context While perhaps the original purpose of refuse service had to do with public health and safety, it is increasingly more about making progress on zero waste and climate change goals. In the City's 2005 Greenhouse Gas Inventory, decomposition of waste at the landfill was shown to be responsible for 14% of the City's greenhouse gas (GHG) emissions. In April 2009, the City Council adopted San Rafael's Climate Change Action Plan (CCAP), which included eight specific programs under the category of "Reduce Material Consumption and Increase Resource SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Re -Use." In July 2011, the City Council adopted the Sustainability Element of the City's General Plan, which includes Policy SU -9 for implementation of programs to reduce material consumption and waste generation. In addition, the Marin Hazardous and Solid Waste Management .,IPA prepared a Zero Waste Feasibility Study in December 2009 which identified a goal of "achieving 80 percent diversion and zero waste in the next five to 17 years." The City of San Rafael is a member of the JPA and adopted a Zero Waste Resolution in August 2011 intended to be consistent with the JPA's goals. The City's resolution states that "the City of San Rafael joins the Marin County Hazardous and Solid Waste JPA representing the eleven cities and towns of Marin and County of Marin, and hereby adopts a goal of 80% landfill diversion by 2012 and 94% diversion by 2025, with diversion meaning the elimination of materials from being disposed of in a landfill; diversion of recycling materials to be reprocessed into usable forms with minimal transport, energy use and other deleterious environmental or social effects; the maximum practical reuse, recirculation and repair of usable items and components; and the reduction of unnecessary packaging." AB 341 (Chesbro-2011) has set a goal of 75% recycling by 2020. While at first glance this sounds like a smaller goal than in the above, the above numbers deal with overall "diversion" and AB 341 tightened the definitions as to "what counts" as recycling to just waste reduction, recycling, and composting. Therefore AB 341 will put a statewide emphasis on things like Extended Producer Responsibility (in short, "design it green, take it back") to make progress on the waste reduction front, mandatory commercial and multi -family recycling to make progress on the recycling front, and organics recycling to make progress on the composting front. The San Rafael City Council's efforts to date are completely in line with the AB 341 goals. A few recent examples include approving the above mentioned Zero Waste resolution in August 2011, the Construction and Demolition Debris Ordinance in August 2011, the Extended Producer Responsibility resolution in January 2012, and the residential food scrap composting program in January 2012. MSS's current diversion rate is about 75%. According to their "Path to Zero Waste," the residential food scrap composting program is expected to boost the rate to 78%. The carpet recycling and drywall composting would increase it to 81 %. The enhanced commercial recycling would increase it to 84% and multi -family recycling could bring the total to 87%. The construction and demolition debris recycling efforts would increase the total to 91 %. A future commercial food scrap pre -consumer composting program would get the total to the countywide goal of 94%. Beyond that, efforts will be required in the areas of extended producer responsibility and consumer responsibility. In summary, it appears that the overall industry is moving from "bringing garbage to the landfill" to "resource hauling" including transport to recyclers and re -users to find the next highest and best use with the landfill being the last option. It should be noted that MSS has been a leader in this movement, as they have invested in facilities and technologies to divert materials from the landfill, without ratepayer assistance, including the construction of the Marin Resource Recovery Center, Marin Recycling Center, and investments in the Zamora food scraps processing facility. ANALYSIS: With all of the above as overall context, this section will examine the proposed amendments to the Franchise Agreement. For ease of discussion purposes, staff has grouped the changes into three categories: 1) zero waste principles, 2) rate stabilization through methodology SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pam 4 changes, and 3) the rate structure implementation plan. Zero Waste Principles The Franchise Agreement (last updated in 2001 and 2005) long pre -dates such documents as the JPA Zero Waste Study and the City's Climate Change Action Plan. While MSS has undertaken many programs to assist in the implementation of these efforts and City goals, the Franchisors' Group sought language in the Franchise Agreements to be more explicit about zero waste goals and reporting. The complete changes can be found in Exhibit B. Highlights include: • MSS will provide a comprehensive annual report that will describe progress and achievements in meeting zero waste goals through programs and activities approved by the Franchisors Group. • The reporting will include information on MSS activities regarding public education on zero waste including outreach, waste audits, community information and events, and technical support of local business and residents. • The annual report will also include quantities and types of refuse collected, tonnage diverted, established market values of diverted materials, and other information to assist the Franchisors' Group in assessing progress toward the zero waste goals. • MSS will annually review and report to the Franchisors' Group on new technologies and industry best practices that could enhance progress towards zero waste. It should be noted that, based on January 2012 changes to the Household Hazardous Waste (HHW) collection agreement between the City and MSS, there is already extensive reporting on the activities of the HHW facility. Rate Stabilization throuah Methodoloav Chanaes The bulk of the work of this summer's meetings between the Franchisors' Group subcommittee and MSS had to do with changes to the rate setting methodology. The proposed methodology is included as Exhibit C. MSS achieved full transparency on the issues, such as recycling costs and revenues, which allowed the parties accurate data with which to make recommendations. Highlights of the changes are: • The Franchisors' Group will no longer pay MSS for the processing of recyclable materials. • MSS and the Franchisors' Group will share equally in the net profits and losses from recycling services through the creation of a rate stabilization fund. • Once the rate stabilization fund achieves a minimum balance, the fund will be used for zero waste programs approved by the Franchisors' Group. In years of poor recycling markets, the fund will assist in off -setting losses. • The Franchisors' Group will benefit from cost reductions in organics processing and in transfer/transport charges attributable to non -Franchisors' Group entities. • To assist with the instability of rate revenues due to customer migration, the three year trend of subscription levels shall be used to set rates rather than the most recent subscription level. • To enable longer term planning, MSS and the Franchisors' Group will annually prepare a five-year capital requirements schedule which will include capital costs for equipment replacement and for new programs. There are other notable efforts that MSS is undertaking at this time that were not specifically related to the proposed changes to the rate setting methodology. For example, AB 341 has mandated commercial and multi -family recycling which will reduce processing costs, increase SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 recycling revenues, and increase diversion. Also, MSS will continue and expand its program to separate wet and dry commercial loads to gain efficiencies and increase diversion rates. There are key incentives that are built into the methodology for MSS to keep costs at an appropriate level and to keep materials out of the landfill. For example, MSS will not be able to include costs that are not necessary for the provision of services, unreasonable in their amount, or exceed comparable charges for similar services by other companies in the Bay Area. Also, as MSS and the Franchisors' Group would now be sharing equally in recycling revenues, MSS is incentivized to get recyclable materials out of the waste stream. Rate Structure Implementation Plan The Franchisors' Group subcommittee and MSS also discussed alternative rate structures. These rate structures, which are intended to stabilize rate revenues and incentivize waste reduction, depart from the current practice of billing customers based on the size and frequency of collection of solely refuse service (the "black can"). The group explored alternative rate structures but determined that significant public outreach, consideration, and education would need to be performed before consideration of a new approach. Therefore, an implementation plan was assembled to lay out future steps should the governing bodies of the Franchisors' Group entities be interested in pursuing new rate structures. This plan includes: • An appropriate description of the approach would need to be created to begin the public discussion of the rate structure. • Implementation and transition issues would need to be identified. Procedures and policies would need to be adopted to address them. • The draft rate structure would need to be revised in accordance with the resolution of the implementation and transition issues. • Effective presentations would need to be prepared which focus on the economic benefits to customers and the environmental benefits from such an approach. • In order to gain experience with the fewest possible number of customers and learning from the experience before expanding it more broadly, a customer group would need to be selected (e.g., commercial vs. residential or a smaller jurisdiction vs. system wide) for initial implementation. • Once selected, outreach tools would need to be developed. These could include handouts and on-line calculators. • Once the initial customer group is experienced with the new rate structure, the Franchisors' Group and MSS could identify the lessons learned and fine tune both the rate structure and outreach/public education effort to address the needs of the broader customers to which the rate structure could be expanded. With the Council's concurrence, staff would seek a proposal from HF&H for professional services related to the above. This proposal, once reviewed by the Franchisors' Group, would be submitted for San Rafael City Council consideration on or around the time of the 2013 rate review. If approved by the Council at that time, staff would work with the Franchisors' Group, MSS, and HF&H to carry out a scope of work (such as the items listed above) intended to provide the franchising agencies with the necessary information and products to implement rate structure changes. This process would obviously require community meetings and input as well. No obligation would be required for any of the franchising agencies to implement rate structure changes, but the work would provide the expertise to do so should the governing bodies' desire. It is anticipated that a new rate structure could be in place for the selected customer group as early as the 2014 rate year. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 Regarding the current proposed amendments to the Franchise Agreement, the City of San Rafael is the first of the Franchisors' Group to bring this item for governing body approval, but the other franchising agencies have the same amendments scheduled for hearings as well. Overall, the proposed amendments to the Franchise Agreement will create improvements that will assist in rate stabilization and more accurately reflect the zero waste goals of the Franchisors' Group. Future changes will likely continue this focus on achieving zero waste goals and incentivizing community reduction of waste, re -use, recycling, and composting. RECOMMENDED ACTION: Staff recommends that the City Council adopt the attached Resolution. FISCAL IMPACT: There is no direct fiscal impact on the City of San Rafael in the act of approving these proposed amendments. However, the financial intent of the amendments is to assist in rate stabilization on behalf of ratepayers in the Franchisors' Group area. In other words, the sharing in revenues and reduction in costs of the proposed amendments will have a positive effect on rate stabilization. OPTIONS: -rhe City Council may choose to: 1. Accept or modify the amendments to the existing Franchise Agreement. 2. Not accept the recommended amendments. 3. Direct staff to negotiate other changes to the Franchise Agreement. ATTACHMENTS Exhibit A: City Council Resolution Exhibit B: Proposed Amendments to the Franchise Agreement with MSS (formally entitled "Second Amendment to the Amendment and Restatement of Collection Agreement of the City of San Rafael with Marin Sanitary Service") Exhibit C: Rate Setting Methodology (formally entitled "Contractor's Revenue Requirement and Rate Adjustment") RESOLUTION NO. 13422 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into a written Amendment and Restatement of Collection Agreement ("Franchise Agreement") dated September 4, 2001; and WHEREAS, the City of San Rafael and Mann Sanitary Service amended this agreement on March 1, 2005 with the Amendment to Refuse and Recycling Collection Agreement; and WHEREAS, the City of San Rafael and Marin Sanitary Service now desire a second amendment to the Franchise Agreement to incorporate provisions toward achievement of the County of Marin's Zero Waste policy and the City of San Rafael Climate Change Action Plan, to update the rate methodology, and to make certain other changes; and WHEREAS, the City of San Rafael has determined that such adjustments are proper, in the best interest of all citizens, and will promote public health, safety and welfare; and WHEREAS, the City Council has reviewed and duly considered the Staff Report, and documents and other written evidence presented at the meeting. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE, AND DETERMINE AS FOLLOWS: 1) The amendments to the Franchise Agreement, attached hereto are hereby approved and shall be included as part of the Amended and Restated Agreement dated September 4, 2001. The City Manager is hereby authorized to execute the amendments. 2) As the governing bodies of the other members of the Franchisors' Group have not yet taken action, the City Manager, at her discretion, is hereby authorized to make modifications to the Second Amendment or its attachments for consistency purposes with the Franchisors' Group. I, Esther C. Beime, 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, October 1, 2012, by the following vote, to wit: AYES: Councilmembers: Connolly, Heller, Levine, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None ESTHER C. BEIRNE, City Clerk SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE THIS SECOND AMENDMENT to the Amendment and Restatement of Collection Agreement of the City of San Rafael (City) with Marin Sanitary Service (Company) is made and entered into this 14 day of November, 2012. WHEREAS, the City and Company entered into a written agreement on September 4, 2001 pursuant to which the Company renders Solid Waste, Recyclable Material and Green Waste collection, processing and disposal services to businesses and residents in the City; and WHEREAS, the City and Company amended this agreement on March 1, 2005 with the Amendment to Refuse and Recycling Collection Agreement between Marin Sanitary Service and the City of San Rafael; and WHEREAS, the City and Company now desire a second amendment to that agreement to incorporate certain provisions related to the Marin Hazardous and Solid Waste Management Joint Powers Authority (Authority) Zero Waste Goal; and WHEREAS, the City and Company now desire to amend certain procedures related to the determination of Contractor's Compensation and Rate Adjustment; NOW THEREFORE, it is mutually agreed as follows: 1. Section 2. Grant of Franchise, Term. Paragraph (B) shall be amended to read: the Agency and Company shall meet no less frequently than annually to discuss progress toward achievement of the Authority Zero Waste Goal, other local needs, regulatory changes, and industry developments as well as proposed changes to the services provided hereunder and the impact on rates of such changes. 2. Section 3. Services, Rate Setting and Rates, Equipment shall be amended to add: (E) Reporting: (1) General. Company shall provide the City reports of operations necessary for the City to comply with State reporting regulations and management of Agreement. All costs associated with preparation of the required reports are the sole responsibility of the Company. The Company shall submit formats of all reports to City and City shall in advance approve the format, specific content and software used for each type of report; such approval not being unreasonably withheld. (2) Quarterly Reporting. Company shall submit to the City a report of all customer service complaints (the Complaint Log) and any action taken by Company in response to these complaints. Customer calls for new starts, final service, or the exchange of carts for a different size shall not constitute a complaint. Calls for missed pickups or any other call including accidents, injuries, and property damage shall be listed in the Complaint Log. Page 1 ORIGINAL- SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE (3) Annual Reporting. Company shall provide a comprehensive report to City annually that will provide a description and progress of: all Zero Waste programs and the status of new technologies as well as industry practices that could enhance progress towards zero waste; public education, outreach and technical support activities undertaken during the year, including distribution of bill inserts, numbers of customers directly personally contacted regarding diversion services, number of waste audits and results, collection notification tags, community information including website and newsletters and events, tours and other activities; Recycling and Organics program participation "set outs" by residential, multi -family and commercial accounts; year to year changes in customer account data segregated by type of service, container size and frequency of collection; annual gross receipts and payments made to City segregated by type of payment. Company shall provide City a report on quantities and types of Refuse, Recyclable Material and Green Waste/Food Waste collected. Company shall provide City a report on curbside recycling tonnage diverted and shall report to City the per capita landfill tonnages generated. Company shall report to City the average monthly market value per ton of recyclable materials collected as reported in the Waste & Recycling News, Los Angeles Region (Southwest USA). In addition, Company shall provide updates to the City on the progress of programs or services implemented during the past two years (4) Certificate of End Use. If requested by the City, Company will obtain a certification of end use documentation from the purchaser/recipients of Recovered Materials establishing that the materials sold have been, in fact, recycled, reused or acquired for a use that will allow the Recovered Materials to qualify, under State regulations, as having been diverted from disposal. The documentation shall be sufficient in form and content to satisfy the California Department of Resources, Recycling and Recovery (CalRecycle) that the materials have been diverted. 3. Exhibit A -Description of Services shall be provided in Exhibit A.1 Description of Services, attached hereto. 4. Exhibit B - Rate Setting Methodology shall be provided in Exhibit B.1 Rate Setting Methodology, attached hereto. 5. Except as specifically amended herein, the Amendment and Restatement of Collection Agreement of the City of San Rafael with Marin Sanitary Service, as amended on March 1, 2005, shall remain in full force and effect. Page 2 SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL Vi" MARIN SANITARY SERVICE IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment the day and year first above written. Date (month, day and year) Marin Sanitary Service ' M"&4 President i� 2V e v Date (nwnth, day and gear) City of San Rafael City Manager By: By: Secretary Ciity Clerk APPROVED AS TO FORM: Ry: City Attorney (Page 3 SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE Marin Sanitary Service — Description of Services MARIN SANITARY SERVICES Description of Services GENERAL Attachment A.1 Company shall provide collection services using modern automated and semi- automated equipment with the Company's name and telephone number clearly visible from the outside of the vehicle or equipment. Company will provide carts or bins to residential and commercial customers that are clearly labeled for their allowable contents, with garbage, recyclables, or compostables. Containers provided by the company are the property of the company. Company to provide an updated website with information on residential and commercial services offered and current customer rates. The website will contain recycling information for residential customers including materials accepted at the curbside, disposal and recycling information for items not accepted at the curbside, and information on the household hazardous waste collection center. The website will contain recycling information for commercial customers including information on the State mandatory commercial recycling law, availability of recycling services tailored to individual businesses. The website will also include information on the services available to meet the requirements of City's construction and demolition ordinance and the materials accepted at the Marin Resource Recovery Center (MRRC). Company to provide customer billing and payment options including automatic billing, credit card billing, and online payments. Company to provide annual reporting to City on customer education and outreach activities. Company to provide quarterly reporting on customer service complaints. RESIDENTIAL SERVICE (FOUR OR FEWER UNITS IN A SINGLE STRUCTURE) Garbap,e: Page 4 SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE Company shall provide semi -automated tipper carts in 20, 32, 64, and 96 -gallon capacities to be placed at the curb or Company -designated location for one time per week collection for rates and fees as listed in Exhibit C. 20 -gallon carts are available for smaller households and intensive recyclers. Carts should be placed at the designated collection location by 6:00 am the day of service. On-site collection for cans not at the curb is available for an extra charge. Items placed outside the cart or overflowing carts will incur an additional charge. Carts are the property of MSS. Company will determine the appropriate collection location. Customers may set out additional containers or bags not to exceed 32 gallons in size for a fee as listed in Exhibit C. Low-income rates listed in Exhibit Care available for qualifying customers. Recvcline: Company shall provide all residential customers with one 64 -gallon dual sort recycling cart, one side for paper and fiber products, one side for glass, metal and plastic (#1-#7) bottles and containers EXCLUDING polystyrene and compostable plastics, and may set out unlimited additional customer -owned containers for each commodity. Cardboard may be broken down and tied into 24" x 24" bundles and left beside the recycling container. Carts or containers must be placed at the curb, or upon approval of company the designated collection location next to their garbage container for one time per week collection by 6:00 am the day of service. Customers may set out additional containers of acceptable recyclable material at no charge. Dual Sort Carts are the property of MSS. All residential customers must be offered recycling collection. Recyclable material placed in company containers or at the curb for collection is the property of MSS, and the theft thereof is a crime. Organics: Company shall provide all residential customers with one 64 -gallon "green" cart for organics to be placed at the curb or Company -approved designated collection location next to their garbage container for one time per week collection by 6:00 am the day of service. Customers may, for a fee as listed in Exhibit C Rates, have up to two additional 64 gallon "green" carts to be set out on the regularly scheduled day. Individual "green" carts should weigh not more than 65 pounds. Green carts are the property of MSS. All residential customers must be offered organics collection. Additional Services Special pickups of large, hard to handle or bulky items may be requested for an additional fee as listed in Exhibit C. Estimates can be provided. These bulky items will be collected in non -compaction vehicles and taken to MRRC for sorting resulting in greater re -use and recycling. Extra material can be collected for a fee as listed in Exhibit C in cans or bags not greater than 32 gallons when placed next to the regular container on collection day. Page 5 SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE Holiday trees will be collected curbside on the regular scheduled pickup day during the month of January. If trees are greater than six (6) feet in length, they must be cut in half. All metal stands, plastic tree bags, and ornaments must be removed. Flocked trees will not be accepted. COMMERCIAL SERVICE Garbaee: Company shall provide semi -automated or automated tipper carts in 32, 64, and 96 -gallon capacities to be placed for collection at the curb or upon approval of company the designated collection location. On-site collection for cans not at the curb is available for an extra charge. Company will also provide bins from 2, 3-, 4-, 5-, 6-, 10-, or 18 -yard capacities for large volumes of material. Service levels range from one time per week to six times per week. Customers may set out additional containers or bags not to exceed 32 gallons in size for a fee as listed in Exhibit C. Company retains approval of all service locations for bins. Company also services customer owned compactor units for the fees as listed in Exhibit C. For safety and equipment purposes company retains right of approval as to the type of compactor to be serviced and service location. RecvclinR: Company shall provide unlimited commercial recycling collection of glass bottles/jars; aluminum and metal cans and containers; all plastic bottles and containers marked #1- #7 (except polystyrene and compostable plastics); newsprint; office paper; and, fiber or cardboard. These materials will be collected in source -separated color coded carts: blue for paper and paper -fiber products and brown for accepted commingled glass, metal and plastics. Company provides semi -automated tipper carts in 32 and 64 -gallon capacity for collection from one time per week to six times per week. Company can provide 3 -yard rear loading bins for cardboard collection with the Company's approval of the size and location. Company will evaluate the appropriate container sizes on an individual customer basis. Pickups can be scheduled from one time per week to six times per week. Company is to perform a simple visual waste audits at least one time per year for each commercial account to provide an estimate of the amount of recyclables still in the garbage to help guide the customer in service changes to increase recycling. For an additional fee per Exhibit C, the Company can perform a detailed waste audit to determine composition and characterization of waste and will provide a detailed report with photos showing the waste streams. This report will provide a detailed plan with recommendations regarding recycling service changes as well as an outreach and education plan. Recycling services must be offered to all commercial customers. Recyclable material placed in company containers or at the curb for collection is the property of MSS, and the theft thereof is a crime. Company will provide services to comply with the State's Mandatory Commercial Recycling law. Page 6 SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE Orp,anics: Company is working with franchising agencies to develop and implement a commercial organics collection program. The first phase of this program will be the implementation of a pre -consumer commercial food -to -energy program in partnership with Central Marin Sanitation Agency. This is a food scraps only collection program. The second phase of removing organics from the commercial stream will be to determine the feasibility of a post -consumer commercial composting program that would parallel the residential program which includes food scraps and food soiled papers. Upon approval of the program, the Company will perform a waste audit of all commercial customers for evaluation and inclusion into the food waste collection program, and inform customers of all options to participate. This section of Attachment A.1 will be amended to include organics collection with rates and fees listed in Exhibit C. Additional Services: Special pickups of large, hard to handle or bulky items may be requested for an additional fee as listed in Exhibit C. Estimates can be provided. These bulky items will be collected in non -compaction vehicles and taken to MRRC for sorting resulting in greater re -use and recycling. Extra material can be collected for a fee as listed in Exhibit C in cans or bags not greater than 32 gallons when placed next to the regular container on collection day. MULTI -FAMILY (FIVE OR MORE UNIT STRUCTURES) Garbap-e: MSS provides semi -automated or automated tipper carts in 32, 64, and 96 -gallon capacities for collection at the curb or designated collection location. Minimum service for all multi -family units is 32 gallons per unit, or the equivalent bin service. On-site collection for cans not at the curb is available for an extra charge. Company will also provide bins from 2-, 3-, 4-, 5-, 6 -yard capacities for large volumes of material. Service levels range from one time per week to six times per week. Company retains approval of service locations for bins. Company also services customer -owned compactor units for the fees as listed in Exhibit C. For safety and equipment purposes, Company retains right of approval as to compactor type and service location. Apartments or multi -family complexes which have cart service for garbage (no bin service) and fewer than 10 units, may be eligible to waive the 32 gallon per unit minimum in exchange for 20 -gallon minimum service at the discretion of MSS based on history of material collected at that location. Each complex would be required to have a 20 gallon cart for each unit. Complexes must have in place and make use of all available recycling services to be considered eligible for the waiver. Page 7 SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE Recvclins: Company provides unlimited multi -family recycling collection of glass bottles/jars; aluminum and metal cans and containers; all plastic bottles and containers marked # 1-7 (except polystyrene and compostable plastics); newsprint, office paper, and fiber or cardboard. These materials will be collected in source separated color coded carts: blue for paper and paper fiber products and brown for accepted commingled glass, metal and plastics Cardboard or fiber not able to fit in containers may be broken down and tied into 24" x 24" bundles and placed alongside the recycling containers for collection. The list of acceptable material may be found in Attachment A.2. Company is to perform a simple visual waste audit at least one time per year for each commercial account to provide an estimate of the amount of recyclables still in the garbage to help guide the customer in service changes to increase recycling. For an additional fee per Exhibit C, the Company can perform a detailed waste audit to determine composition and characterization of waste and will provide a detailed report with photos showing the waste streams. This report will provide a detailed plan with recommendations regarding recycling service changes as well as an outreach and education plan. Company provides semi - automated tipper carts in 32 and 64 -gallon capacity for collection from one time per week to six times per week. Recycling services must be offered to all multi -family customers. Recyclable material placed in company containers or at the curb for collection is the property of MSS, and the theft thereof is a crime. Company will provide services to comply with the State's Mandatory Commercial Recycling law. Organics: Company is working with franchising agencies to develop and implement a commercial organics collection program. The first phase of this program will be the implementation of a pre -consumer commercial food -to -energy program in partnership with Central Marin Sanitation Agency. This is a food scraps only collection program. The second phase of removing organics from the commercial stream will be to determine the feasibility of a post -consumer commercial composting program that would parallel the residential program which includes food scraps and food soiled papers. The list of acceptable material may be found in Attachment A.2. Upon approval of the program, the Company will perform a waste assessment of all commercial customers for evaluation and inclusion into the organics collection program, and inform customers of all options to participate. This section of Attachment A.1 will be amended to include organics collection with rates and fees listed in Exhibit C. Additional Services: Special pickups of large, hard to handle or bulky items may be requested for an additional fee as listed in Exhibit C. Estimates can be provided. These bulky items will be collected in non -compaction vehicles and sorted at MRRC for greater re -use and recycling. Extra material can be collected for a fee as listed in Page 8 SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE Exhibit C in cans or bags not greater than 32 gallons when placed next to the regular container on collection day. MUNICIPAL SERVICES Garbage: Company will provide collection services up to six times per week for all City -owned containers located in public areas of the City at a service level determined by the City. City owns and maintains all City - owned containers located in public areas and parks. Company shall provide semi -automated or automated tipper carts in 32, 64 -gallon sizes, or bins from 2, 3-, 4-, 5-, 6-, 10-, or 18 -yard capacities for large volumes of material upon request for service at City -owned facilities. City will provide Company with locations of all City -owned containers. Recvcling: Company shall provide unlimited commercial recycling collection of glass bottles/jars; aluminum and metal cans and containers; all plastic bottles and containers marked # 1-7 (except polystyrene and compostable plastics); newsprint, office paper, and fiber or cardboard. These materials will be collected in source separated color coded carts: blue for paper and paper fiber products and brown for accepted commingled glass, metal and plastics. Company provides semi -automated tipper carts in 32 and 64 - gallon capacity for collection from one time per week to six times per week. Company can provide 1- 3 - yard rear loading bins for cardboard collection with the Company's approval of the size and location. Pick-ups can be scheduled from onetime per week to six times per week. Company is to perform a simple visual waste audit at least one time per year for each commercial account to provide an estimate of the amount of recyclables still in the garbage to help guide the City in service changes to increase recycling. For an additional fee per Exhibit C, the Company can perform a detailed waste audit to determine composition and characterization of waste and will provide a detailed report with photos showing the waste streams. This report will provide a detailed plan with recommendations regarding recycling service changes as well as an outreach and education plan. Recycling services must be offered to all municipal customers. Recyclable material placed in company containers or at the curb for collection is the property of MSS, and the theft thereof is a crime. Company will provide services to comply with the State's Mandatory Commercial Recycling law. Organics: The Company is working with franchising agencies to develop and implement a commercial organics collection program. The first phase of this program will be the implementation of a pre -consumer commercial food -to -energy program in partnership with Central Marin Sanitation Agency. This is a food scraps only collection program. The second phase of removing organics from the commercial stream Page 9 SECOND AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE will be to determine the feasibility of a post -consumer commercial composting program that would parallel the residential program which includes food waste and food soiled papers. Upon approval of the program, the Company will perform a waste assessment of the City facilities, for evaluation and inclusion into the organics collection program, and inform the City of all options to participate. This section of Exhibit A.1 will be amended to include organics collection with rates and fees listed in Exhibit C. Additional Services: Special pickups of large, hard to handle or bulky items may be requested. These bulky items will be collected in non -compaction vehicles and sorted at MRRC for greater re -use and recycling. Collaboration on Special Events: Company will collaborate with the City on two community events throughout the year as designated by the City. Company will furnish, at no cost to the promoters, as needed up to ten (10), 3 cubic yard debris boxes (or the equivalent) for use by the City at its corporation yard. These debris boxes are to be used solely for solid waste generated by the events. MSS shall also furnish Recycling and Organics collection containers and signage to promote zero waste. Page 10 EXHIBIT "C" EXHIBIT B.1 CONTRACTOR'S REVENUE REQUIREMENT AND RATE ADJUSTMENT I. CONTRACTOR'S APPLICATION Overview The "Franchisors' Group" (comprised of the cities of Larkspur, Ross and San Rafael, the Las Gallinas Valley Sanitary District and the County of Marin) have joined together to regulate the rates of the Contractor in accordance with these procedures. Because the Contractor has services and related expenses unrelated to the Franchisors' Group, the revenues and expenses are allocated between the Franchisors' Group and these other agencies. The Contractor's rates are based on its revenue requirement for the Rate Year' which is the sum of: the forecasted allowable cost of Rate Year operations; adjusted for variations between actual and prior year forecasted disposal, organics processing, fuel, depreciation and interest expenses; plus profit, agency fees; less, other revenues exclusive of revenues from the sale of recyclable materials. The rate adjustment is based on the difference between the Contractor's revenue requirement and the average of the past three years' revenues. Because both the forecasted revenue requirement and the revenues from the approved rates involve assumptions about future events and because such assumptions usually differ from actual events and these differences can be material, the Contractor is not guaranteed a profit. Contractor's Mate Applications By August 1, Contractor shall submit an application requesting the amount of Contractor's revenue requirement rate adjustment for the next Rate Year commencing January 1 of the following calendar year. The application is prepared using either the Base Year approach (Section II) or the Indexed Year approach (Section III). • Base Year Application: Once every three years, commencing with the application for the Rate Year ending December 31, 2013, the application shall be based on: the Contractor's actual financial results of operations for the preceding Rate Year ending December 31; audited financial statements for the preceding Rate Year ending December 31; year-to- date financial results of operations for the Current Rate Year; and Contractor's forecasted costs for the next Rate Year. This shall be called the "Base Year Revenue Requirement." ' The Rate Year is the year for which rates are being calculated, the Current Year is the year during which the rates are being calculated and the Prior Year is the most recently completed rate year. For example, in the application for rates effective January 1, 2013 the Rate Year refers to the period from January 1, 2013 to December 31, 2013, the Current Rate Year refers to the period from January 1, 2012 to December 31, 2012 and the Prior Rate Year refers to the period from January 1, 2011 to December 31, 2011. Page 1 C:\Documents and Settings\jims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx • Indexed Application: Two out of every three years, commencing with the rate application for the two Rate Years ending December 31, 2014 and 2015, the application shall be based on the Base Year Revenue Requirement adjusted as described below. This shall be called the "Indexed Revenue Requirement." In either case, the application shall be submitted in the format described in Attachment A. Contractor shall assemble and provide documentation that supports the report of actual data and assumptions made by the Contractor to forecast Contractor's revenue requirement for the projected Rate Year. In addition to the application the Contractor shall provide the following information: 1. Five-year capital requirements schedule, including replacements and new programs; and, 2. Description and schedule of forecasted revenues and costs of new programs agreed to by the Contractor and the City of San Rafael (City) or proposed by the Contractor. Review of Rate Application The City, or its representative, will review Contractor's application for compliance with this Agreement, accuracy, and reasonableness. It shall make its best efforts to complete the review in a timely manner so that rates may be adjusted effective January 1 of each Rate Year. If Contractor submits its Application on or before the Application submittal date (August 1), and City delays approving the annual Rate adjustment until after January 1 of the following Rate Year, then Contractor shall be entitled to retroactively apply the rate adjustment to January 1. If the Contractor submits its Application after the Application submittal date (August 1), a retroactive adjustment will be at the discretion of the [Agency]. II. CALCULATION OF CONTRACTOR'S BASE YEAR REVENUE REQUIREMENT The Base Year application shall clearly document Contractor's calculation of Contractor's revenue requirement and rate adjustment based on the methodology described in this Section II. Contractor's revenue requirement shall equal the sum of the forecasted annual cost of operations, profit, forecasted interest expense, franchise and other City fees, less other revenues, each of which shall be calculated in accordance with procedures set forth below. A. Forecasted Annual Cost of Operations. The forecasted annual cost of operations consists of the sum of forecasted: 1. Wages and salaries expense 2. Benefits expense 3. Workers compensation expense 4. Disposal expense Page 2 C:\Documents and Settings\jims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.dooc 5. Commercial mixed waste processing expense 6. Organics processing expense 7. Recyclable materials processing expense 8. Adjustment for Non -Franchisors' Group entities transfer/transport expenses 9. Fuel and oil expense 10. Equipment and vehicle expense 11. Depreciation/lease expense 12. J PA fees 13. Other operating / General and administrative expense B. Methodology for Forecasting Annual Cost of Operations 1. Determine Actual Costs. Contractor's audited financial statement shall be reviewed to determine Contractor's actual costs necessary to perform all the services in the manner required by this Agreement. The Contractor's auditor shall determine that costs have actually been incurred and have been assigned to the appropriate cost category as described below: 2. Allocation of Costs. The audited financial statements include costs of operations unrelated to the Franchisors' Group. These include costs reported for the following Contractor's departments: Department Department Name Part of Franchisors' Number Group 100 Garbage Collection Yes 101 San Anselmo Collection No 102 County (RVSD-N) Collection No 103 Fairfax Collection No 104 San Quentin Collection No 200 Debris Box Collection No 300 Transfer Station Yes Page 3 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx Department Number 400 500 Department Name Shop General & Administrative 600 Recycling Collection 700 MRRC Operations 800 Shredding/Street Sweeping Part of Franchisors' Group Allocation Allocation Yes No No Contractor shall include only costs for Department 100 - Franchisors' Group Garbage Collection, Department 300 — Transfer Station and Department 600 - Recycling Collection- plus allocated Shop (Department 400), General and Administrative costs (Department 500), and management salaries (Department 500 and other related entities) when performing these procedures. In allocating costs among these departments the Company shall use the following procedures. a. Shop costs (Department 400) shall be allocated by truck route hours by type of truck assigned to each jurisdiction. b. Genera! & administrative costs (Department 500) are allocated using an average of: i. Each department's percentage of projected revenue ii.Each department's percentage of annual customer counts iii. Each department's percentage of wages For example: (Revenue Total Revenue (all departments) $100 Franchisors Group (Dept 100) Revenue $75 Franchisors Group (Dept 100) Percentage 75% A Annual Customer Counts Total Annual Customer Counts (all departments) 100 Franchisors Group (Dept 100) Annual Customer Counts 73 Franchisors Group (Dept 100) Percentage 73% B Wages Total Wages (all departments) $100 Franchisors Group (Dept 100) Wages $25 25% C Allocation% for General & Administrative Costs to Dept 100 58% (A+B+011; , Page 4 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx C. Management salaries (Department 500 and other related entities) shall be allocated based on a study reporting the time spent by management related to the Franchisors' Group and other non -Franchisors' Group activities. The study shall be performed as part of the base year revenue requirement analysis. 3. Calculate Adjusted Costs. Contractor shall adjust actual costs allocated to the Franchisors' Group to eliminate costs that are unnecessary or unreasonable for the performance of the services required by the Agreement. These non -allowable costs include the following: a. Costs of any category or type not actually incurred, not necessary for the provision of services under this Agreement or unreasonable in amount. b. Payments to directors and/or owners of Contractor, unless paid as reasonable compensation for services actually rendered. c. Fines for penalties of any nature. d. Federal or state income taxes. e. Charitable or political donations. f. Depreciation or interest expense for collection vehicles, containers, other equipment, offices and other facilities if such items are leased from a related party at more than their actual cost. g. Attorneys' fees and other expenses incurred by Contractor in any court proceeding in which the City and Contractor are adverse parties, unless Contractor is the prevailing party in such proceeding. h. Attorneys' fees and other expenses incurred by Contractor arising from any act or omission in violation of this Agreement. i. Attorneys' fees and other expenses incurred by Contractor in any court proceeding in which Contractor's own negligence, violation of law or regulation, or wrongdoing are at issue. j. Payments to Related -Party Entities for products or services, in excess of the cost to the Related -Party Entities for those products or services. k. Goodwill. I. Transfer and transport, disposal, and/or processing costs whose rate/ton exceeds comparable charges for the same services under the same conditions (e.g_, transport distances to processing and disposal facilities) by other companies in the San Francisco Bay Area. The Allocated Costs (from step 2 above), adjusted for non -allowable costs (from this step 3), shall be considered "Allowed Costs" for the purposes of forecasting costs. 4. Forecasted Rate Year Allowed Cost of Operations. The Allowed Cost of operations for the Rate Year shall be forecasted in the following manner: Page 5 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx a. Wage and salaries expense for the Rate Year shall be forecasted based on negotiated labor agreements for represented employees as well as reasonable wage and salary adjustments for non -represented employees. Reasonableness will be determined by such factors such as including a comparison to industry standards for comparable operations in the San Francisco Bay Area. b. Benefit expense for the Rate Year shall be forecasted based on negotiated labor agreements for represented employees, reasonable adjustments for non -represented employees, and changes in insurance premiums net of any refunds. c. Workers' compensation expense shall be calculated by multiplying the wages established in the step 4.a above by the applicable premium rates from the Contractor's insurance carrier for the projected Rate Year. d. Disposal expense for the Rate Year shall be forecasted to include projected disposal expense and adjustments to the previous two disposal expense forecasts (Current Rate Year and Prior Rate Year) and shall be calculated in the following manner: L Projected Rate Year Disposal Expense = (Rate Year disposal tip fee per Ton) X (total tons projected for the Rate Year); plus, ii.Revised Current Rate Year Expense Adjustment = (Revised Current Rate Year projected tons) X (Current Rate Year disposal tip fee) less (the Current Rate Year Expense projected one year ago); plus, iii. Revised Prior Rate Year Expense Adjustment = (Actual Prior Rate Year disposal tons) X (Actual Prior Year disposal tip fee) less (the Prior Year Expense established during the previous review). iv. Example: Page 6 O\Documents and Settings\jims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx Example Calculation of Forecasted Disposal Expense Example: Projected Rate Year 2013 Current Rate Year 2012 Prior Rate Year 2011 Total Forecasted Disposal Expense i. Projected Rate Year Disposal Expense $ 42,000 ii. Current Rate Year Disposal Expense Adjustment $ 1,300 iii. Prior Rate Year Disposal Expense Adjustment $ (500) Total Forecasted Disposal Expense $ 42,800 L Projected Rate Year Disposal Expense Projected Tip Fee $ 42 Projected Rate Year Tons 1,000 Projected Rate Year Disposal Expense (2013) $ 42,000 ii. Current Rate Year Disposal Expense Adjustment Current Rate Year Tip Fee $ 52 Revised Current Rate Year Projected Tons 1,000 Revised 2012 Disposal Expense $ 52,000 2012 Disposal Expense Projected in 2011 $ 50,700 Disposal Expense Adjustment (2012) $ 1,300 iii. Prior Rate Year Disposal Expense Adjustment Actual Prior Rate Year Tip Fee $ 50 Actual Prior Rate Year Disposal Tons 990 Revised Prior Rate Year Disposal Expense $ 49,500 2011 Disposal Expense Projected in 2011 $ 50,000 Disposal Expense Adjustment (2011) $ (500) e. Commercial mixed waste processing expense for the Rate Year shall be forecasted to include the projected processing expense and adjustments to the previous two processing expense forecasts (Current Rate Year and the Prior Rate Year) and shall be calculated in the following manner: L Projected Rate Year Processing Expense = (Rate Year processing fee per Ton) X (total tons projected for the Rate Year); plus, ii.Revised Current Rate Year Expense Adjustment = (Revised Current Rate Year projected tons) X (Current Rate Year processing fee) less (the Current Rate Year Expense projected one year ago); plus, Revised Prior Year Expense Adjustment = (Actual Prior Rate Year processing tons) X (Actual Prior Year processing fee) less (the Prior Year Expense established during the previous review). Page 7 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx iv. See Section II.B.4.d.iv for an example of the calculation substituting "processing expense" for "disposal expense'. The commercial mixed waste processing rate per ton shall be $83.00 for the Rate Year ending December 31, 2013 and thereafter shall be adjusted annually by multiplying the Processing rate per Ton contained in the most recent Index Year Revenue Requirement by one (1) plus the percentage change in the "San Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (Urban Wage Earners; 1982-84=100)" between the average index for the twelve (12) months ending June of the current year and the corresponding twelve (12) months ending June of the previous year. At the option of the City or the Contractor, a review of the Contractor's actual costs to provide the service may be included as part of the Base Year Revenue Requirement. f. The Contractor's charge for the processing of separated recyclable materials shall be $0.00. g. Organics processing expense for the Rate Year shall be forecasted to include the projected processing expense for the Rate Year and adjustments to the previous two processing expense forecasts (Current Rate Year and the Prior Rate Year) and shall be calculated in the following manner: i. Forecasted yard trimmings expense = (Yard Trimmings Processing rate per Ton as calculated below) X (total Tons of Yard Trimmings projected for the Current Rate Year); plus, ii.Revised Current Rate Year Processing Expense Adjustment = (Revised projected processed Tons) X (Current processing fee) less (the Current Rate Year Expense projected one year ago); plus, iii. Revised Prior Year Processing Expense Adjustment = (Actual processed tons) X (Actual processing fee) less (the Prior Year Expense established during the previous review). iv. See Section II.B.4.d.iv for an example of the calculation substituting "processing expense" for "disposal expense". The Yard Trimmings Processing rate per Ton shall be set at $51.54 for the year ending December 31, 2013 and thereafter shall be adjusted annually by multiplying the Processing Rate per Ton contained in the most recent Index Year Revenue Requirement by one (1) plus the percentage change in the "San Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (Urban Wage Earners; 1982-84=100)" between the average index for the twelve (12) months ending June of the current year and the corresponding twelve (12) months ending June of the previous year. Page 8 C:\Documents and Settings\iims\Local Settings\Temporary Internet Files\QLK60\MSS Rate Methodology Final 092512.docx At the option of the City or the Contractor, a review of the Contractor's actual costs to provide the yard trimmings processing service may be included as part of the Base Year Revenue Requirement. h. Transfer/transport adjustment for the Rate Year shall reduce costs contained in Department 300, which would otherwise be included in the Contractor's revenue requirement, related to the transfer and transport of materials not generated in the Franchisors' Group jurisdictions under their contracts with the Contractor shall be calculated in the following manner: L Forecasted Transfer/Transport Adjustment = (Transfer /Transport Fee per ton as calculated below) X (total disposal Tons for the operations not affiliated with the Franchisors Group for the Current Rate Year). ii.Revised Current Rate Year Transfer/Transport Adjustment = (Revised projected disposal Tons) X (Current Transfer/Transport fee) less (the Current Rate Year Expense projected one year ago); plus, iii. Revised Prior Year Transfer/Transport Adjustment = (Actual disposal Tons) X (Actual Transfer/Transport fee) less (the Prior Year Expense established during the previous review). iv. See Section II.B.4.d.iv for an example of the calculation substituting "transfer/transport expense" for "disposal expense". The Transfer/Transport Fee per ton shall be $20.00 for the Rate Year ending December 31, 2013 and thereafter shall be determined as part of the Base Year Revenue Requirement. L Fuel and oil expense for the Rate Year shall be forecasted to include the projected fuel and oil expense for the Rate Year and adjustments to the previous two fuel (not oil) expense forecasts (Current Rate Year and the Prior Rate Year) and shall be calculated in the following manner: L Forecasted fuel and oil costs shall be based on Current Year to date actual annualized costs and gallons of fuel and oil consumed, adjusted for anticipated changes in the consumption and price of these commodities; plus, ii.Revised Current Year Expense Adjustment = (Projected fuel gallons from the previous review) X (Average price per gallon based on actual year to date purchases) less (the Current Rate Year Expense projected one year ago); plus, iii. Revised Prior Year Expense Adjustment = (Projected fuel gallons from the Prior Year review) X (Average price per gallon for the prior year) less (the Prior Year Expense established during the previous review). iv. See Section II.B.4.d.iv for an example of the calculation substituting "fuel expense" for "disposal expense" and "gallons" for "tons". Page 9 C:\Documents and Settings\jims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final 092512.docx j. Equipment and vehicle maintenance expense for the Rate Year shall be forecasted based on historical costs adjusted for changes in the number of equipment and vehicles to be maintained and the cost of such maintenance. k. Depreciation and lease expense for the Rate year shall be forecasted based on the Contractor's actual depreciation, which shall reflect the retirement and addition of assets. Projected depreciation shall include anticipated purchases in the next Rate Year. Adjustments shall be made for previous year projections if assets were not purchased in projected time period. The Allocation of depreciation and lease expense between the Franchisors' Group and other operations shall be based on truck usage (either directly assigned or allocated if shared between the two operations). I. JPA fees expense shall be based on the tons collected in the City for the period determined and rate established by the JPA. m. Other operating / general and administrative expense for the Rate Year shall be forecasted based on historical costs adjusted for the Contractor's plans as approved by the Franchisors' Group. S. Calculated profit. Contractors calculated profit for the Rate Year shall be forecasted by dividing the forecasted annual cost of operations (from steps 1-4 above); by 0.905 and subtracting the forecasted annual costs of operations from the dividend. 6. Forecasted Interest Expense. Forecasted interest expense for the Rate Year shall be based on the Contractor's actual interest from its loan amortization schedules for actual and projected capital expenditures for services under this Agreement. Adjustment shall be made in the Current Rate Year if projected asset purchases from the Prior Rate Year were not purchased in projected time period. 7. Forecasted Franchise Fees Expense. Forecasted franchise fee expense for the Rate Year shall be calculated by multiplying Gross Rate Revenues by the approved franchise fee percentage or an approved annual amount and the forecasted values. 8. Forecasted Other Agency Fees Expense. Forecasted other agency fees expense (such as: Vehicle Impact Fee, Tree Maintenance, Administration fee) for the Rate Year shall be calculated using the appropriate methodology and the forecasted values. 9. Forecasted Other Revenues. Forecasted other revenues for the Rate Year shall include revenues received by the Contractor from related and third parties from the use of assets (including but not limited to vehicles and transfer station equipment) or provision of services by employees (including but not limited to drivers, operators, and processors). 10. Forecasted Total Contractor's Revenue Requirement. Contractor's revenue requirement necessary to perform all the services and pay all fees in the manner Page 10 C:\Documents and Settings\jims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx required by this Agreement for the Rate Year shall be equal to the sum of the following: a. Forecasted annual cost of operations (determined in accordance with Step 4 above); plus, b. Profit (determined in accordance with step 5 above); plus, c. Forecasted interest, franchise fee, other fees expense and other revenues (determined in accordance with steps.6-9 above). C. Rate Adjustment Factor 1. The Rate Adjustment Factor shall equal the Total Contractor's Revenue Requirement for the coming Rate Year divided by the Gross Rate Revenues. Gross Rate Revenues shall 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. In order to mitigate significant differences in the forecasted and actual revenues received, a three year trend in subscription levels will be factored into the calculation. Gross Rate Revenues shall be calculated in the following manner: a. Gross Rate Revenues = (Actual revenue for the Current Year through June and projections for the remainder of the Current Year) X (Average percentage surplus or shortfall rate revenue for the three most recently completed Rate Years.) b. Example: Page 11 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx Calculation of Rate Adjustment Factor Rate Year Rate Year Rale Year 1 2 3 Projected Rate Revenues $ 1,000 $ 1,100 $ 1,200 Actual Rate Revenues $ 900 $ 1,100 $ 1,250 Excess (Deficiency) $ (100) $ - $ 50 %of Actual Revenue of Projected Revenue 90.0% 100.0% 104.2% (A) (B) (C) Three Year Average of % of Actual Revenue of Projected Revenue [ (A + B + C) divided by 31 98.1% Projected Rate Year Revenue Requirement $ 1,275 Projected Revenue based Curren[ Year Revenues 1,250 Adjustment for Three Year Average % of Projected vs Actual Revenue 98.1% Adjusted Projected Revenue 1,226 Projected Revenue Excess (Deficiency) $ (49) Rate Adjustment Factor 4% D. Adjustment of Rates 1. Each rate approved for the Current Rate Year shall be multiplied by the Rate Adjustment Factor to calculate the effective rate for the Rate Year. III. DETERMINATION OF CONTRACTOR'S INDEXED REVENUE REQUIREMENT The Indexed Year application shall clearly document Contractor's calculation of Contractor's revenue requirement and rate adjustment based on the methodology described in this Section III. Contractor's revenue requirement shall equal the sum of the forecasted annual cost of operations, profit, forecasted interest expense, franchise and other City fees, less other revenues, each of which shall be calculated in accordance with procedures set forth below. The City, or its representative, will review Contractor's application for compliance with this Agreement, accuracy, and reasonableness. A. Forecasted Annual Cost of Operations. The annual cost of operations for the Rate Year consists of the sum of forecasted categories of expenses as described below: Page 12 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx 1. Wages and salaries expense 2. Benefits expense 3. Workers' compensation expense 4. Disposal expense 5. Commercial mixed waste processing expense 6. Organics processing expense 7. Recyclable materials processing expense 8. Adjustment for Nan -Franchisors' Group entities transfer/transport expenses 9. Fuel and oil expense 10. Equipment and vehicle expense 11. Depreciation/lease expense 12. JPA Fees 13. Other operating / general and administrative expense B. Methodology for Forecasting Annual Cost of Operations The forecasted annual cost of operations for the Indexed Revenue Requirement shall be based on Contractor's most recent Base Year Revenue Requirement adjusted as described below. 1. Wages and salaries expense shall be calculated by multiplying the most -recently approved wages and salaries expense by one (1) plus the percentage change in the "San Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (Urban Wage Earners; 1982-84=100)" between the average index for the twelve (12) months ending June of the current year and the corresponding twelve (12) months ending June of the previous year, in the first year following the Base Year Revenue Requirement. 2. Benefits expense, except for Workers' Compensation expense, shall be calculated by multiplying the most -recently approved benefits expense by one (1) plus the percentage change in the Employment Cost Index — Benefits (Private Industry Workers) between the average index for the twelve (12) months ending June of the current year and the corresponding twelve (12) months ending June of the previous year, in the first year following the Base Year Revenue Requirement. 3. Workers' compensation expense shall be calculated by multiplying the wages established in the Base Year Revenue Requirement by the applicable premium rates from the Contractor's insurance carrier for the projected Rate Year. 4. Forecasted disposal expense for residential and commercial solid waste tons transferred at the Contractor's transfer station shall be calculated in the same manner as described in Section II.B.4.d. Page 13 C:\Documents and Settings\jims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.dooc 5. Forecasted commercial mixed waste processing expense for commercial tons processed at the Contractor's processing facility shall be calculated in the same manner as described in Section II.B.4.e. 6. Forecasted organics processing expense shall be calculated in the same manner as described in Section II.B.4.g. 7. Forecasted recyclable material processing cost shall be $0.00. 8. Forecasted transfer/transport adjustment for tons not affiliated with the Franchisors Group transferred and transported through the Contractor's transfer station shall be calculated in the following manner: a. Forecasted Transfer/Transport Adjustment = (Transfer /Transport Fee per ton as calculated below) X (total disposal Tons for the operations not affiliated with the City for the Current Rate Year). b. Revised Current Rate Year Transfer/Transport Adjustment = (Revised projected disposal Tons) X (Current Transfer/Transport fee) less (the Current Rate Year Expense projected one year ago); plus, c. Revised Prior Year Transfer/Transport Adjustment = (Actual disposal Tons) X (Actual Transfer/Transport fee) less (the Prior Year Expense established during the previous review). d. See Section II.B.4.d.iv for an example of the calculation substituting "transfer/transport expense" for "disposal expense". The Transfer/Transport Fee per ton shall be calculated by multiplying the most - recently approved rate per ton by multiplying the Transfer/Transport Fee per Ton contained in the most recent Base Year Revenue Requirement by one (1) plus the percentage change in the "San Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (Urban Wage Earners; 1982-84=100)" between the average index for the twelve (12) months ending June of the current year and the corresponding twelve (12) months ending June of the previous year, in the first year following the Base Year Revenue Requirement. 9. Forecasted fuel and oil expense shall include projected fuel and oil expense and adjustments to the previous two fuel expense (not oil) forecasts (Current Rate Year and Prior Rate Year) and shall be calculated in the following manner: a. Projected Year Fuel Expense = (Projected gallons established as part of the Base Year Revenue Requirement) X (Average price per gallon based on recent trends from actual purchases); plus, b. Revised Current Year Expense Adjustment = (Projected gallons from the previous review) X (Average price per gallon based on actual year to date purchases) less the expense established during the previous review; plus, Page 14 C:\Documents and Settings�ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx c. Revised Prior Year Expense Adjustment = (Projected gallons from the Prior Year review) X (Average price per gallon for the prior year) less the expense established during the previous review. d. See Section II.B.4.d.iv for an example of the calculation substituting "fuel expense" for "disposal expense" and "gallons" for "tons". Projected oil expense shall be calculated by multiplying the oil expense contained in the most recent Base Year Revenue Requirement by one (1) plus the percentage change in the "Motor Vehicle Related Index (All Urban Consumers, U.S. City Average [PI -U] 1982-1984 = 100)" between the average index for the twelve (12) months ending June of the current year and the corresponding twelve (12) months ending June of the previous year, in the first year following the Base Year Revenue Requirement. This step will be repeated in the second year following the Base Year Revenue Requirement. 10. Equipment and vehicle maintenance expense shall be calculated by multiplying the most -recently approved equipment and vehicle maintenance expense by one (1) plus the percentage change in the "Motor Vehicle Related Index (All Urban Consumers, U.S. City Average [PI -U] 1982-1984 = 100)" between the average index for the twelve (12) months ending June of the current year and the corresponding twelve (12) months ending June of the previous year, in the first year following the Base Year Revenue Requirement. 11. Forecasted depreciation and lease expense shall be based on the Contractor's actual depreciation from fixed asset system and depreciation records, which shall reflect the retirement and addition of assets. Allocation of depreciation of trucks to Franchisors Group and other operations shall be based on truck usage. Projected depreciation shall include anticipated purchases in the next Rate Year. Adjustments shall be made for previous year projections if assets were not purchased in projected time period. 12. Forecasted .IPA fees shall be based on the tons collected in the City for the period determined and rate established by the JPA. 13. Forecasted other operating and general and administrative expense shall be calculated by multiplying the most -recently approved other operating and general and administrative expense by one (1) plus the percentage change in the "San Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (Urban Wage Earners; 1982-84=100)" between the average index for the twelve (12) months ending June of the current year and the corresponding twelve (12) months ending June of the previous year, in the first year following the Base Year Revenue Requirement. 14. Forecasted annual cost of operations for the Indexed Revenue Requirement shall equal the sum of the preceding expenses. Page 15 C:\Documents and Settings\jims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx C. Calculate Profit. The Contractor shall calculate profit by dividing the forecasted annual costs of operations by 0.905 and subtracting the forecasted annual costs of operations from the dividend. D. Forecasted Interest Expense. Forecasted interest expense for the Rate Year shall be based on the Contractor's actual interest from its loan amortization schedules for actual and projected capital expenditures for services under this Agreement. Adjustment shall be made in the Current Rate Year if projected asset purchases from the Prior Rate Year were not purchased in projected time period. E. Forecasted Franchise Fees Expense. Forecasted franchise fee expense for the Rate Year shall be calculated using the appropriate methodology and the forecasted values. F. Forecasted Other Agency Fees Expense. Forecasted other agency fees expense (such as: Vehicle Impact Fee, Tree Maintenance, Administration fee) for the Rate Year shall be calculated using the appropriate methodology and the forecasted values. G. Forecasted Other Revenues. Forecasted other revenues for the Rate Year shall include revenues received by the Contractor from related and third parties from the use of assets (including but not limited to vehicles and transfer station equipment) or provision of services by employees (including but not limited to drivers, operators, and processors). H. Forecast Contractor's Total Revenue Requirement for Rate Year. Contractor's Revenue requirement for Rate Year shall be equal to the sum of the following: 1. Forecasted annual cost of operations (determined in accordance with Step B above). 2. Profit (determined in accordance with Step C above). 3. Forecasted interest expense (determined in accordance with Step D above). 4. Forecasted franchise fees expense (determined in accordance with Step E above). 5. Forecasted other agency fees expense (determined in accordance with Step F above). 6. Forecasted other revenues (determined in accordance with Step G above). I. Rate Adjustment Factor The Rate Adjustment Factor shall be calculated using the procedure described in Section II C. J. Adjustment of Rates Each then -current rate shall be multiplied by the Rate Adjustment Factor to calculate the effective rate for the coming Rate Year. IV. RATES FOR CHANGES IN SCOPE In the event either the City or Contractor requests a change in scope in accordance with Section 4 of the Agreement and such request occurs in a Rate Year when an index -based adjustment shall be made to determine Rates for the subsequent Rate Year, the Contractor shall furnish the City with projected operational and cost data for the net change in scope (additional cost of the Page 16 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final 092512.docx change in scope less savings resulting from change of scope) to support any adjustment to Rates. For the purposes of analyzing cost impacts of changes in scope, the Contractor's profit shall be calculated using an operating ratio of .905 of actual reasonable and necessary costs. The City reserves the right to require that the Contractor supply any additional cost data or other information it may reasonably need to ascertain the appropriate Rate adjustment, if any, for the change in scope. The City shall review this operational and cost data, and the City shall consider Rates for the change in scope, if warranted. V. DETERMINATION OF NET RECYCLABLE REVENUE CONTRIBUTION TO RESERVE Forecasted recyclable material processing revenue shall be calculated to allocate equally between the Contractor and the rate payers the benefits and risks from the processing and sale of separated recyclable materials; and, create an incentive for the company to operate cost effectively and to obtain maximum value from the sale of recyclable material. The procedure is to be applied to the agencies of the Franchisors' Group (cities of San Rafael and Larkspur, Town of Ross, Las Gallinas Valley Sanitary District and County of Marin) taken as a whole. A. To prevent instability in the rate revenue resulting from the sharing of such profits and losses, the rate payers share of the net revenues and losses from the processing and sale of separated recyclable materials shall be accumulated in a reserve (retained by the Contractor but separately accounted for in the Contractor's balance sheet and fully disclosed in the annual report prepared by a certified public accountant). For example, if in the first year the net results of processing and sales were a net loss of $5.00 per processed ton, the ratepayers share of the net loss would be $2.50 (50%) multiplied by the Franchisors Group tons (15,000) or $(37,500). The $(37,500) would be added to the reserve (no consideration for this negative value shall be made in the calculation of rates for the collection of refuse, recycling and yard trimmings) and if in the second year the net results of processing and sales were net revenues of $20.00 per processed ton, the ratepayers share of $10.00 (50%) multiplied by the number of the Franchisors Group tons (15,000) or $150,000 would be added to the reserve for a net balance of $112,500 (and no consideration for this positive value shall be made in the calculation of rates for the collection of refuse, recycling and yard trimmings). B. Should the netosp itive value in the reserve exceed $250,000 (based on a reasonable worse case loss attributable to the Franchisors Group of approximately $17 per ton on 15,000 tons), 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 (based on a reasonable worse case loss attributable to the Franchisors Group of approximately $17 per ton on 15,000 tons), then the City or the Contractor may request a review of the actual costs and revenues of providing the service. The Franchisors Group and Contractor agree to meet and confer to determine a reasonable remedy to the Contractor. C. The Contractor's net revenues from the processing of recyclables shall be calculated using the following procedure: Page 17 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx 1. The Contractor shall account for revenues and expenses and prepare financial statements for its source separated recyclable materials processing and sales operation (currently organized as the Marin Resource Recovery Association (MRRA)) in accordance with Generally Accepted Accounting Principles and Section 1113.1.2.3. 5. and 6 of this Attachment B. 2. Revenues and expenses shall be for the 12 months ending December 31 for the calendar year prior to the submission of the application. For example, for rates to be set for 2013, the revenues and expenses will be for the 12 months ending December 31, 2011. 3. In addition to the non -allowable costs in Section 1113.2, Contractor shall: a. Exclude payments made to related -parties pursuant to consulting agreements in its calculation of actual expenses. b. Exclude facility rental payments to related -parties in excess of $119,130 per year. C. Exclude revenue and related expenses of the Household Hazardous Waste operations. D. Contactor shall include all revenue related to these operations including but not limited to: 1. Revenue received from the sale of recyclable materials. 2. Revenue from related and third parties from the use of assets (including but not limited to balers, scales, etc.) or provision of services by employees (including but not limited to the brokering of material processed by others). 3. Revenue from the sale of assets used in the recyclable material processing operations. 4. Revenue from grants received from Federal, State or local agencies. E. Contractor shall properly include expenses for all personnel working at the facility in MRRA's accounting records. F. Contractor shall be entitled to consideration equal to an operating ratio of 0.95 on its adjusted actual expenses. Contractor shall calculate the consideration by dividing the annual adjusted actual expense, which shall be determined in accordance with these procedures, by 0.95, subtracting the forecasted annual costs of operations from the dividend. G. The Contractor's independent auditor shall annually review the Contractor's financial statements in accordance with Generally Accepted Auditing Standards and shall issue an opinion thereon. Page 18 C:\Documents and SettingsVims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.dooc H. At the option of the City or the Contractor, a review of the actual costs/revenues to provide the service may be included as part of the Base Year Revenue Requirement. The processing revenue per ton shall be competitive with processing revenue per ton received in the San Francisco Bay Area by comparable facilities. Page 19 C:\Documents and Settings\jims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.docx ATTACHMENT A: CONTRACTOR'S APPLICATION Expense Allocation (Percentage of Total Revenues) Rate Application Operating Expenses: wages Benefits Disposal Fees Commercial Materials Processing Expense Yard Trimmings Processing Expense Non -Franchisors Group Transfer/Transport Adjustment Fuel & Oil Equipment and Vehicle Expense Depreciation/Leases Other Operating/G&A Total Opemting Expenses Operating Profit 90.5% interest Expense Revenue Requirement Route Revenues (2012 Projected) Adjustment: Adjusted Route Revenues Less: Franchise Fees Less: Street Sweeping Less: Vehicle Impact Fee Net Regulated Revenues Non -Regulated Revenues Marin Sanitary Service Sample Rate Application Rate Calculation 44.11% 20.81% 8.56% 15.63% 2.24% 7.34% Las Galllnas- Las Galllnas- County - San Rafael City of S.R. County Larkspur Ross RVSD $ 2,920,480 $ 1,378,066 $ 566,507 $ 1,035,013 $ 148,143 $ 485,949 $ 1,365,786 644,464 264,931 494,032 69,280 227,258 1,900,895 896,963 368,731 673,674 96,424 316,297 Total Revenues Adjustment: Less: Franchise Fees _ Adjusted Total Revenues Revenue Surplus/(Shortfall) $ Rate In_rease Requested by MSS 1.32% County 87,115 40,740 56,702 553,207 261,038 107,310 196,056 28,062 92,050 16,502 653,060 308,155 126,679 231,443 33,127 108,665 19,480 809,665 382,051 157,057 286,944 41,071 134,723 24,152 1,096,388 517,345 212,674 388,558 55,615 182,432 32,704 9,299,481 4,388,082 1,803,889 3,295,720 471,722 1,547,374 277,395 976,189 460,627 189,359 345,960 49,518 162,432 29,119 126,231 59,564 24,486 44,736 6,403 21,004 3,765 10,401,901 4,908,273 2,017,734 3,686,416 527,643 1,730,810 310,279 11,293,496 5,321,604 1,969,908 3,948,182 588,350 2,090,610 378,317 11,293,496 5,321,604 1,969,908 3,948,182 S88,350 2,090,610 378,317 (1,129,350) (532,160) (25,000) (394,818) (79,751) (313,592) (56,748) (44,977) (22,488) (137,676) (58,324) - - - '63702 10,026,470 4,731,120 1,944,908 3,553,364 508,599 1,668,340 299,082 4,278 2,018 830_ 11516 217 712 127 10,030,748 4,733,138 1,945,738 3,554,1180 508,816 1,669,052 299,209 10,030,748 4,733,138 1,945,738 3,554,880 508,816 1,669,052 299,209 (371,153) $ (175,135) $ (71,996) $ (131,536) $ (18,827) $ (61,758) $ (11,070) 3.70% 3,70% 3.70% 3.70% 3.70% 3.70% 3.70% Reserve for Future Diversion Programs Balance- Beginning of Year $ - $ -- CurrentYearAddition/Reduction 811909 38,596 33,108 32,898 7,699 21,962 4,622 Balance - End of Year $ 81,909 $ 38,596 $ 33,108 $ 32,898 $ 7,699 $ 21,962 $ 4,622 A.1 C:\Documents and Settings\ ims\Local Settings\Temporary Internet Files\OLK60\MSS Rate Methodology Final - 092512.dooc PROFESSIONAL SERVICES AGREEMENT/CONTRACT COMPLETION CHECKLIST AND ROUTING SLIP Below is the process for getting your professional services agreements/contracts finalized and executed. Please attach this "Completion Checklist and Routing Slip" to the front of your contract as you circulate it for review and signatures. Please use this form for all professional services agreements/contracts (not just those requiring City Council approval). This process should occur in the order presented below. Step Responsible Description Completion Department Dale 1 City Attorney Review, revise, and comment on draft / agreement. V 2 Contracting Department Forward final agreement to contractor for their signature. Obtain at least two signed originals from contractor. 3 Contracting Department Agendize contractor -signed agreement for Council approval, if Council approval i0 I I necessary (as defined by City Attorney/City ` Ordinance*). 4 City Attorney Review and approve form of agreement; bonds, and insurance certificates and endorsements. 5 City Manager / Mayor / or Agreement executed by Council authorized Department Head official. 6 City Clerk City Clerk attests signatures, retains original agreement and forwards copies to the C� contracting department. To be completed by Contracti-gg Department: Project Manager: �J 1 �"� `��2 Project Name: Agendized for City Council Meeting of (if necessary): 0&� I ( 201 If you have questions on this process, please contact the City Attorney's Office at 485-3080. * Council approval is required if contract is over $20,000 on a cumulative basis. CITY OF SAN RAFAEL ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. Successor/ SRCC AGENDA ITEM NO. 5.a DATE OF MEETING: 10/1/2012 FROM: Stephanie Lovette DEPARTMENT: Economic Development DATE: TITLE OF DOCUMENT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AMENDMENTS TO THE FRANCHISE AGREEMENT WITH MARIN SANITARY SERVICE 10 Depa ment Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: --VIO 60 City Manager (signature) City Attorney (signatur ` NOT APPROVED �Z� REMARKS: