HomeMy WebLinkAboutCM Marin Sanitary Service Rates and Contract for 2022____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: December 6, 2021
Disposition: Resolutions 15009 x 15010
Agenda Item No: 6.a
Meeting Date: December 6, 2021
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager’s Office
Prepared by: Cory Bytof,
Sustainability Program Manager
City Manager Approval: __________
TOPIC MARIN SANITARY SERVICE RATES AND CONTRACT FOR 2022
SUBJECT RESOLUTIONS OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL:
A.ESTABLISHING MAXIMUM RATES COLLECTED BY MARIN
SANITARY SERVICE FOR REFUSE AND RECYCLABLE MATERIAL
COLLECTION AND DISPOSAL SERVICES, TO BE EFFECTIVE
JANUARY 1, 2022, AND
B.APPROVING A FOURTH AMENDMENT TO THE AMENDMENT AND
RESTATEMENT OF COLLECTION AGREEMENT OF THE CITY OF SAN
RAFAEL WITH MARIN SANITARY SERVICE
RECOMMENDATION
1.Adopt a resolution establishing maximum rates collected by Marin Sanitary Service for
Refuse and Recyclable Material Collection and Disposal Services with the addition to be
effective January 1, 2022; and
2.Adopt a resolution approving a fourth Amendment to the Amendment and Restatement of
Collection Agreement of the City of San Rafael with Marin Sanitary Service.
EXECUTIVE SUMMARY
This report details the rate adjustment proposal for 2022 necessary for Marin Sanitary Service
(MSS) to provide refuse, recycling, and organic materials composting, hauling, and processing
for customers (“rate payers”) in San Rafael. Rate payers include residential homeowners,
apartment owners, commercial property owners, and other businesses and tenants that pay solid
waste bills from MSS. In addition, this report proposes to amend the City’s Franchise Agreement
with MSS to comply with California Senate Bill 1383 (SB 1383), which requires diversion of
organic materials such as green waste and food waste from landfill. The proposed rate adjustment
would increase rates 2.39% over 2021 levels for all rate payers. It includes adjustments based on
the contractually agreed-upon rate-setting methodology the City has with Marin Sanitary Service,
a scheduled increase to the City’s Refuse Impact Fee of $345,667 (approved by the Council in
December 2020) and also includes an extension of the Illegal Dumping Pilot Program. The
proposed rate adjustment is based upon independent third-party reviews of each by R3
Consulting Group, Inc. (R3).
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
BACKGROUND
Each year, the City Council holds a public hearing to set the maximum collection rates that can
be charged by Marin Sanitary Service (MSS) to customers in the City of San Rafael. These rates
are based on a specific methodology contained in the Franchise Agreement the City has with
MSS. This methodology was changed in 2018 when the Council adopted the third amendment to
the Franchise Agreement with Marin Sanitary Service. The Background section of this report will
provide the overall context of the rate-setting process, the services Marin Sanitary Service
provides in San Rafael, and relevance to State law.
Franchise Agreement and Franchisors’ Group
Article XI of the California Constitution and the California Public Resources Code allows cities to
regulate refuse and recycling services and to collect a franchise fee from any provider of such
services. MSS is our sole provider of refuse hauling and recycling services and performs these
services in many surrounding communities as well. These services are pursuant to a Franchise
Agreement between the City and MSS, which outlines the services that must be provided by MSS
as well as a methodology to be followed to set customer rates each year.
All of the jurisdictions in Marin that have similar agreements with MSS work together to share
information and reduce costs: the City of San Rafael, City of Larkspur, the Towns of Ross, San
Anselmo, and Fairfax, the Las Gallinas Valley Sanitary District, and the County of Marin. This
Marin franchisors’ group (“franchisors”) meets throughout the year to oversee MSS’s operations
and works together to conduct a single annual rate review analysis rather than each jurisdiction
having to conduct and pay for a separate review.
Our current Franchise Agreement is the “Third Amendment to the Amendment and Restatement
of Collection Agreement of the City of San Rafael with Marin Sanitary Service” and was adopted
by Council in 2018. The amendment was one of several outcomes of a 2-year process of analysis
and negotiations with MSS intended to provide more stable and predictable rates, continued
verifiable high levels of service, and a simplified and cost-effective rate-setting methodology that
also improves accuracy and transparency.
State Law
In 2016, recognizing the negative impacts of organic materials decomposing in landfills on climate
change, the State of California started mandating that businesses with certain thresholds of refuse
disposal compost their organic materials (Assembly Bill (AB) 1826 enacted 2014). Beginning in
2022 Senate Bill (SB) 1383, enacted in 2017, will require that all residents and businesses divert
their organic waste. SB 1383 will also place new requirements on local governments to
implement, monitor and enforce participation in organic waste diversion programs, and the
California Department of Resources Recycling and Recovery (CalRecycle) will be authorized to
fine local governments that don’t comply. The franchisors have been working with R3 Consulting
Group, Inc. to ensure compliance with SB 1383 and assess opportunities to create economies of
scale working together to implement the law.
Marin Sanitary Service Programs and Services
MSS provides residential, commercial and multi-family refuse services, including garbage,
recycling and organics (food waste and green waste diversion) collection and processing. MSS
also provides garbage and recycling pick-up for City facilities, parks, and all sidewalk receptacles
downtown and throughout San Rafael. MSS is a key partner in the City’s environmental goals as
well as the City and County’s zero waste goals. MSS conducts the majority of the outreach for
the City for the State’s current Mandatory Commercial Recycling and Mandatory Composting laws
(AB 341, enacted in 2011, and AB 1826), which place requirements on businesses to recycle and
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
divert organic waste and require annual monitoring and notifications to non-compliant businesses.
MSS also has a robust community outreach and education program, and conducts numerous
programs and community offerings, including an annual free compost giveaway and customer
education event. All their services including the “Where Does it Go, Joe” recycling lookup feature
can be found on their website at MarinSanitaryService.com.
ANALYSIS
This section will outline the rationale for the two items under consideration:
A. The rate adjustment for 2022
B. The fourth amendment to the Franchise Agreement
A. Rate Adjustment for 2022
History of Rate Adjustments
Over the past ten years rate adjustments for San Rafael have ranged from less than one percent
to over 9% with an average of 4.95% annually. Last year’s adjustment was 5.49% and included
some legacy true-ups and recycling losses, an Illegal Dumping Pilot project which is being
proposed to continue, and an adjustment to the Refuse Vehicle Impact Fee. Many factors
contribute to the fluctuation in rates for refuse haulers, including a growing amount of solid waste,
recycling, and organic (compostable) materials generated by residents and businesses, the costs
of processing recyclables and organic materials, changes in the value of recyclable materials,
landfill fees, increasing costs of labor and insurance, and changes in State laws and government
fees.
Rate Review and Adjustment
Attachment B is the independent third-party analysis and report of Marin Sanitary Service’s 2022
Rate Application, which was conducted by R3 Consulting Group, Inc. (R3). It breaks down the
areas impacting the rates as an average for the franchisors as a whole. San Rafael’s calculated
rate adjustment is 2.39%. As shown in the report, Collector Operations comprised most of the
rate adjustment and was calculated using the Consumer Price Index (CPI) for Water, Sewer and
Trash Collection. This is also the second year of three of an increase in the City’s Refuse Vehicle
Impact Fees, which are increasing by $345,667 over 2021.
Another major impact to the rate adjustment this year had to do with COVID-19 and the annual
rate revenue reconciliation. Due to the impacts of the COVID-19 pandemic, MSS experienced
an overall shortfall of about $1.5 million in 2020 billed revenues compared to the annual
revenue requirement for San Rafael, resulting from reductions in accounts and service levels.
This would have added over 3% to the rates. However, because MSS also received a Paycheck
Protection Program (PPP) loan in 2020 – and expects that loan to be forgiven – MSS is waiving
the Rate Revenue Reconciliation for 2020, contingent on final determination of the PPP loan
forgiveness. MSS is still awaiting news regarding PPP loan forgiveness; if, in the unlikely event
the PPP loan is not forgiven, MSS may request the ability to revisit this item in 2022. This was
time-limited to the worst portion of the pandemic and is not ongoing at the same levels,
therefore staff anticipates some additional unknown, but lesser losses in 2021 that may impact
the 2023 rates.
There are also several areas that benefitted this year’s rates. Less material was being disposed
of in during the first six months of 2021 resulting in a reduction of landfill tipping fees projected for
2022. Recyclable material processing costs similarly decreased due to recycling commodities
prices increasing this past year, resulting in additional revenue and net benefit to rate payers.
Also, 2021 was the last year of three for legacy true-ups in fuel and oil, garbage landfilling, and
organics processing, which are no longer in the rates.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
Other items in the rates this year include some new expenses in 2022 related to SB 1383. MSS
will add one new organics recycling collection route (comprised of a truck and driver), one new
outreach and education specialist, and additional equipment to process and clean collected
organic waste throughout its service area. Staff and R3 anticipate extra funds will be necessary
for the City to comply with SB 1383, so this coming year we will assess the anticipated costs for
the City to meet the requirements for SB 1383 including requirements for tracking, enforcement,
and procurement.
Illegal Dumping Pilot Program
The City has done a lot to try to address the problem of illegal dumping. Last year the cross-
departmental Together San Rafael Team (“Team”) developed a 5-year plan with a robust goal
of 50% reduction in dumping by 2025. The Team has been expanded to include MSS, R3,
Gigantic Idea Studios, the Mattress Recycling Council, and Conservation Corps North Bay. Part
of the early work of this project was to better understand who is dumping and why, as well as
what types of materials are most prevalent. The Team has identified three major types of
dumpers with the understanding that each type requires different solutions to achieve success:
Casual Dumpers, who usually are renters that have no access to free, on-site disposal and set
things out on the curb; Illicit Dumpers, who know this is illegal, have large amounts of items to
dispose of, and seek out-of-the-way locations to dump; and dumpers who are experiencing
homelessness. These pilots focus on the first two, while the Team has integrated into the Health
and Safety Committee to assist with waste management related to homelessness.
Last year was the second year of pilot projects aimed at understanding the upstream causes of
the problem, identifying potential solutions, and conducting activities for different types of
dumping based on three key areas of focus:
• Access to inexpensive disposal options
• Education and community engagement
• Targeted enforcement
The rate-funded pilot programs were more focused on disposal options and community
engagement. While single family homeowners can have bulky items picked up curbside, renters
in multi-family units have no such option and the Team has been conscious about bringing an
equity lens to the analysis. Thus, the rate-funded pilots have been primarily focused on
providing cost-effective disposal options that adequately address people’s needs.
In 2021, the following pilots and activities were conducted:
1. Six Bulky item drop-off days at two locations where many multi-family buildings are
located
2. Free vouchers for drop-off of bulky items at the MSS transfer station (indoor dump)
3. A “Hot Spot” campaign of data analysis, mapping, and interviews and engagement with
apartment managers near locations where dumping is a common occurrence
4. An analysis of multi-family properties that don’t meet minimum refuse service levels
5. Tracking of baseline dumping data to measure pre and post intervention results
(including types of material, amounts, and locations) and development of a data
dashboard
6. Mini-grants and commercial vouchers for businesses that experience dumping on their
property
Proposed 2022 pilots and activities can be broadly categorized into the following areas:
1. Expand Bulky Item Days to offer consistent, monthly disposal opportunities and include
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
apartment managers
2. Develop on-call bulky item pickup pilot to address a primary barrier to disposal for low-
income tenants: transportation
3. Expand hot spot campaigns, including use of free dump vouchers as well as tools of
enforcement to change social norms and encourage proper disposal behavior
4. Policy analysis for potential permanent policy considerations with regard to minimum
service levels and bulky item disposal, including community engagement
Analysis by City staff, R3 and our community partners, including MSS, has concluded that the
bulky item drop-off days have been the most successful and cost-effective disposal options for
renters to date. Community members appreciate the events and have provided input on ways to
maximize participation. Additionally, they are helpful for apartment managers trying to do the
right thing with limited resources. A major challenge is marketing the events to ensure that they
are well known and favorably attended throughout the community. The Team recommends
expanding this program to once per month with additional dumpsters on consistent dates, times,
and at the same location. This regularity will establish an expected norm that will require less
promotion and allow for community knowledge to penetrate more deeply in the community.
In addition, the pilots for 2022 will include additional Hot Spot campaigns, an exploration of
policy options regarding minimum service levels, and increased data gathering and mapping to
measure progress and uncover additional solutions. Importantly, to address a key barrier for
renters, the Team will explore an on-call bulky item collection pilot for tenants who don’t have
the ability to transport to the bulky item days. Additional enforcement mechanisms will be
pursued, including sign installation and surveillance cameras in hot spots, which are separate
from these rate-funded pilots.
Business resources will include additional mini-grants for protective measures for private
property owners that are being dumped on and a commercial coupon program to be combined
with increased enforcement against properties that allow accumulation of dumped materials
(“carrot and stick approach”). This year will also expand the Team further to include members of
local community groups such as from the Canal Community Resilience Council, Drawdown
Ambassadors, Empowered Women Cleaning Marin, and Voces del Canal, among others.
This suite of proposed pilot programs, data gathering, and analysis carries a not-to-exceed cost
of $159,423. Staff will offset some of the costs through use of the City’s annual Zero Waste
Grant and will apply unspent funds from 2021, reducing the amount to a total $103,540 in
proposed new funds, or .49% impact to the 2022 rate adjustment. The Team will also seek other
funding such as through the Mattress Recycling Council in an effort to increase activities and
reduce impact to the rates. The 2022 Illegal Dumping Funding Memo with more detail is
included as Attachment C.
B. Fourth Amendment to the Franchise Agreement for SB 1383
Our Franchise Agreement sets the services and standards for MSS to conduct waste
management activities and bill customers in San Rafael. It also sets the methodology for
determining maximum rates allowable annually for customers. As mentioned, the last
amendment establishing a new, streamlined rate setting methodology was adopted in 2018.
SB 1383 establishes specific services and ways to provide those services by waste haulers, and
accordingly requires updates to the Franchise Agreement. The City hired R3 Consulting Group,
Inc. (R3) to assist staff with the Franchise Agreement negotiations between the City and Marin
Sanitary Service. Fortunately, MSS is and always has been at the forefront of environmental
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
sustainability when it comes to the services it provides so many of the requirements were
already put in place by MSS. This amendment reflects additional requirements related to SB
1383 and makes more explicit many of the services MSS offers.
The amendment is provided as Attachment E. A summary of the items in the proposed
amendment follows:
- Full roll-out of three-container waste collection (including garbage, recycling and organics)
to all customer types in compliance with SB 1383 requirements by January 1, 2024
- Container labels to meet SB 1383 standards for all new containers put into service
- Outreach and education, including development and distribution of materials
- Evaluation of waiver requests for exemption from the requirement to subscribe to recycling
and organics service (the City retains the responsibility for approving such requests)
- Route reviews and notices for contamination monitoring
- Site visits to customers to provide educational materials and assistance in proper sorting;
and for customers not signed up for recycling or organics service to encourage them to
subscribe
- Reporting to the City and State on compliance activities; and reports to the City on
observed non-compliance for City enforcement action
Note that this is the first item of several actions required for the City to comply with and implement
SB 1383. Staff will be bringing a Municode update to Council in the early part of 2022 which will
establish mandates for organics recycling by waste generators, and will also provide for penalties
and documentation, which is required by the law. In addition, the City will need to set forth an
implementation plan including a plan to meet annual organic waste product procurement
mandates by the State, which exceed our current usage one hundred-fold. The City is committed
to implementing the spirit of the law and will be seeking creative ways to ensure highest and best
uses of the material created locally. Potentially this could include applying compost purchased to
meet our procurement requirement on public or private lands to sequester carbon from the
atmosphere through arrangements with large landowners.
SB 1383 regulations require submission of an initial compliance report by April 2022 and has
additional compliance and reporting deadlines in the coming year for items such as food recovery
and capacity planning for organic materials processing. The City is working with the other Marin
franchisors and Zero Waste Marin to determine roles and responsibilities for some of these
requirements. In addition, actual enforcement of provisions in our ordinance is not required until
January 2024, allowing waste generators to transition to full compliance over two years’ time.
Finally, MSS is conducting other assessments and plans to prepare for additional organic
materials from SB 1383 as well as dry biomass that will be generated with the Measure C fire fuel
removal efforts. This dry, woody material is already starting to flow through MSS and the onsite
processing of this material will not only reduce the transportation and emissions impact from
trucking this material to Stockton and Woodland, but will also create a local green energy source
used to power MSS operations with any excess energy produced being sold back to the grid
through an agreement with MCE. This project is under review with the City’s planning department
as a modification to the existing use permit.
Conclusion
R3 reviewed the application and all relevant documents and financial schedules with MSS,
including the Illegal Dumping Pilot extension and provided amendment language for the Franchise
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
Agreement that has been reviewed and agreed to by MSS. The full schedule of rate adjustment
line items can be found on page 2 of Attachment B: Review of Marin Sanitary Service’s 2022 Rate
Application. In summary, Staff recommends approving the 2022 rate adjustment of 2.39%.
This rate adjustment would result in an overall increase of $1.09 per month for a residential 32-
gallon cart, which is the most common cart size, for a total of $46.84. For a common commercial
size there would be an overall increase of $13.51 per month for a 3 cubic yard bin, totaling $578.65
per month. Recycling is included in all accounts and customers can reduce their regular landfill
container size or pickup schedule resulting in a lower rate by recycling and by reducing overall
waste generation. Organics recycling is also provided, which is automatically part of the
residential rates, and approximately 60% reduction of refuse service for the commercial
composting program.
R3 conducted a survey of Bay Area solid waste rates as part of the rate review, included on the
last page of their report. It summarizes the survey data for residential 30-35 gallon can weekly
service with curbside recycling and organics pickup. Note though, that proposed 2022 rates are
not available for other jurisdictions yet. This summary compares proposed San Rafael 2022 base
rates to other jurisdictions’ 2021 actual rates, which will certainly increase. Using this comparison
San Rafael’s rates are slightly higher than other Bay Area jurisdictions and slightly lower than
most other Marin jurisdictions. It is important to note that jurisdictions often provide different
services and service levels, making apples-to-apples comparisons problematic. San Rafael’s
rates have traditionally been comparable with rates in other Bay Area jurisdictions, while often
providing more services.
As in previous years, staff is recommending that the rate adjustment be applied across the board
to all residential, multi-family and commercial service accounts. Actual rates for all services are
provided in Attachment A as Exhibit C - Schedule of Rates.
COMMUNITY OUTREACH
Notice of the public hearing was published twice in the Marin Independent Journal (Attachment
F) and emailed to all names on file with the City Clerk and City Manager’s Office. Information on
the maximum annual rate that MSS can collect is available at the City Clerk’s office during the 10
days prior to the public hearing. The proposed rate information was also provided directly to the
San Rafael Chamber of Commerce, the Business Improvement District, Marin Builder’s
Association, and other interested parties.
FISCAL IMPACT
Attachment A contains the complete rate request. If approved, the rates would be applied to all
customer types and service options and satisfies the City’s contractual obligations to meet the
MSS revenue requirement to cover costs for San Rafael refuse and recycling services, including
franchise fees.
OPTIONS
1. Adopt a resolution establishing maximum rates collected by Marin Sanitary Service for
Refuse and Recyclable Material Collection and Disposal Services, to be effective January
1, 2022 with the addition of an Illegal Dumping Pilot Program for a total increase of 2.39%
over 2021 rates, and
Adopt a resolution approving a fourth amendment to the Amendment and Restatement
of Collection Agreement of the City of San Rafael with Marin Sanitary Service.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
2. Do not adopt either resolution at this time and direct staff to come back with more
information.
RECOMMENDED ACTION
Adopt a resolution establishing maximum rates collected by Marin Sanitary Service for Refuse
and Recyclable Material Collection and Disposal Services, to be effective January 1, 2022 with
the addition of an Illegal Dumping Pilot Program for a total increase of 2.39% over 2021 rates,
and
Adopt a resolution approving a fourth amendment to the Amendment and Restatement of
Collection Agreement of the City of San Rafael with Marin Sanitary Service.
ATTACHMENTS
Attachment A: Resolution with Rate Schedule (marked as Exhibit C)
Attachment B: R3 Review of MSS Rate Application, including Bay Area Rate Survey
Attachment C: R3 2022 Illegal Dumping Funding Memo
Attachment D: Resolution approving Fourth Amendment to the Franchise Agreement
Attachment E: Attachment to Resolution: Proposed Fourth Amendment to the
Amendment and Restatement of Collection Agreement of the City of San
Rafael with Marin Sanitary Service
Attachment F: Affidavit of Publication
1
RESOLUTION NO. 15009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ESTABLISHING MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE
FOR REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL
SERVICES, TO BE EFFECTIVE JANUARY 1, 2022
WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into an
“Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin
Sanitary Service,” dated September 4, 2001 and amended by a written first amendment dated
March 1, 2005, a written second amendment dated November 14, 2012, and a written third
amendment dated February 25, 2019 (hereafter the “Franchise Agreement”); and
WHEREAS, Section 3 (B) of the Franchise Agreement provides for maximum rates allowed
to be collected by Marin Sanitary Service, to be amended from time to time by the City Council; and
WHEREAS, Exhibit "C" of the Franchise Agreement provides for approved rate schedules,
as amended by the City Council from time to time, to be included as part of the Collection
Agreement; and
WHEREAS, Marin Sanitary Service has submitted a rate application request using the
methodology outlined under Section 3 (A) of the Franchise Agreement; and
WHEREAS, the City of San Rafael has conducted a review of said rate application and
produced a report recommending rate and fee adjustments; and
WHEREAS, on December 6, 2021 the City Council held a duly noticed public hearing to
consider the rate application request and receive public testimony thereon; and
WHEREAS, the City of San Rafael has determined that such rate and fee adjustments are
proper, in the best interest of all citizens, and will promote public health, safety and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES
RESOLVE, DETERMINE AND ORDER AS FOLLOWS: The schedule of maximum rates and fees
attached hereto as "Exhibit C" and incorporated herein by reference, is hereby approved to be
collected by Marin Sanitary Service for refuse and recyclable material collection and disposal
services, at an increased rate of 2.39% from 2021, to be effective January 1, 2022. Said “Exhibit
C” shall be incorporated as the revised Exhibit "C" to the Franchise Agreement.
I, Lindsay Lara, City 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, the 6th of December 2021, by the following vote, to wit:
2
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
CITY OF SAN RAFAEL
EXHIBIT C ‐ SCHEDULE OF RATES
RESIDENTIAL REFUSE COLLECTION RATES
Rate increase: 2.39%
Effective date: 01/01/2022
Weekly Service Rates (Billed Quarterly)
Monthly Rate Quarterly Rate Monthly Rate Quarterly Rate
20 gallon cart $39.82 $119.46 $45.09 $135.27
32 gallon cart $46.84 $140.52 $53.06 $159.18
64 gallon cart $93.68 $281.04 $106.12 $318.36
96 gallon cart $140.52 $421.56 $159.18 $477.54
Low income ‐ 20 gal* cart $31.86 $95.58 $36.07 $108.21
Low income ‐ 32 gal* cart $37.47 $112.41 $42.45 $127.35
Low income ‐ 64 gal* cart $74.94 $224.82 $84.90 $254.70
Low income ‐ 96 gal* cart $112.42 $337.26 $127.34 $382.02
Senior rate**Discontinued $33.07 $99.21 $42.10 $126.30
Additional Organics Cart Rental $2.50 $7.50 $2.50 $7.50
(35 or 64 gallon cart)
Additional Split Cart Rental $2.50 $7.50 $2.50 $7.50
(64 or 96 gallon cart)
Additional Monthly Charges Monthly Fee Quarterly Fee
(per cart, each way)
Distance 5' ‐ 50'$6.08 $18.24
Distance Over 50'$12.31 $36.93
Additional Service Fees per Occurrence Fee
Return Fees ‐ Off day $25.00
Return Fees ‐ Same day $10.00
Resume Service/Late Fee $35.00
Contamination (cart) any size cart $30.00
Overload/Overweight (cart)$25.00
Extra bag garbage $15.00
Extra bag yard waste $10.00
Steam Clean (cart)$15.00
Special Collection $35.00
Special Handling (Bulky items)$30.00
Bulky item fees per item Fees Vary
Cart Strap Set‐up Admin Fee $25.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
*Must meet PG&E CARE program eligibility requirements.
**Customers with these rates prior to 2005 will keep the existing rate type. No new customers will be added with this rate type.ONE TIME SERVICE FEES REOCCURING CHARGESResidential Service (Bundled service includes 1 landfill (garbage) cart, 1 organics cart, & 1 recycling split cart )
2022 Flat rate 2022 Hill Rate
NOTE: We may not be able to accommodate any collection requests NOT at the curb due to a variety of factors including safety, accessibility, and
efficiency. Requests to be assessed and approved by Route Manager.
CITY OF SAN RAFAEL
EXHIBIT C ‐ SCHEDULE OF RATES
COMMERCIAL REFUSE COLLECTION RATES
Rate increase: 2.39%
Effective date: 01/01/2022
COMMERCIAL CARTS, BINS, ROLL‐OFFS
Garbage 123456
20 gallon cart*$39.82 $79.64 $119.46 $159.28 $199.10 $238.92 $9.19
32 gallon cart $46.52 $93.04 $139.56 $186.08 $232.60 $279.12 $10.74
64 gallon cart $93.04 $186.08 $279.12 $372.16 $465.20 $558.24 $21.47
96 gallon cart $139.56 $279.12 $418.68 $558.24 $697.80 $837.36 $32.21
1 yard bin $302.36 $610.53 $924.49 $1,244.35 $1,569.92 $1,901.30 $69.78
2 yard bin $444.56 $1,021.41 $1,549.53 $2,089.26 $2,640.62 $3,203.58 $102.59
3 yard bin $578.65 $1,077.54 $1,642.51 $2,224.81 $2,824.63 $3,441.85 $133.53
4 yard bin $825.50 $1,526.02 $2,323.82 $3,144.95 $3,766.20 $4,856.86 $190.50
5 yard bin $892.96 $1,795.89 $2,737.53 $3,708.05 $4,707.76 $5,736.42 $206.07
6 yard bin $1,060.11 $2,155.07 $3,285.00 $4,449.71 $5,649.26 $6,883.71 $244.64
10 yard roll‐off $1,494.17 $3,057.71 $4,692.54 $6,396.22 $8,169.66 $10,012.77 $344.81
18 yard roll‐off $2,683.68 $5,492.97 $8,427.70 $11,487.92 $14,673.65 $17,984.94 $619.31
20 yard roll‐off $2,981.96 $6,103.28 $9,364.09 $12,764.33 $16,304.06 $19,983.22 $688.14
25 yard roll‐off $4,171.28 $8,537.82 $12,586.32 $17,156.39 $21,914.12 $26,859.33 $962.60
Organics (F2E or Compost)123456Additional One
Time Empty
32 gallon $19.29 $38.58 $57.87 $77.16 $96.45 $115.74 $4.45
64 gallon $38.58 $77.16 $115.74 $154.32 $192.90 $231.48 $8.90
1 yard $135.02 $270.04 $405.06 $540.08 $675.10 $810.12 $31.16
2 yard $270.04 $540.08 $810.12 $1,080.16 $1,350.20 $1,620.24 $62.32
3 yard $405.06 $810.12 $1,215.18 $1,620.24 $2,025.30 $2,430.36 $93.48
10 yard roll‐off $1,045.92 $2,091.84 $3,137.76 $4,183.68 $5,229.60 $6,275.52 $241.37
18 yard roll‐off $1,882.66 $3,765.32 $5,647.98 $7,530.64 $9,413.30 $11,295.96 $434.46
20 yard roll‐off $2,091.84 $4,183.68 $6,275.52 $8,367.36 $10,459.20 $12,551.04 $482.73
25 yard roll‐off $2,614.80 $5,229.60 $7,844.40 $10,459.20 $13,074.00 $15,688.80 $603.42
Garbage Compactors (Per empty)
Roll‐off Compactor Tipping fee per ton $128.42 Roll‐off Compactor Hauling charge $288.64
Stationary FL (Per Compacted Yard) $111.53 Roll‐off Compactor Special handling Rates Vary
Service Fee Details
Lock $25.00 Monthly fee
Box rental Fees Vary Minimum Bimonthly fee
Distance < 50ft $6.08 Monthly fee per cart, each way
Distance > 50ft $12.31 Monthly fee per cart, each way
Commercial Service Fees Fee
Return Fee ‐ BIN $75.00
Return Fee ‐ CART ‐same day $10.00
Return Fee ‐ CART ‐off day $25.00
Late Fee/Resume Service Fee $35.00
Contamination (BIN) $50.00
Contamination (CART) $30.00
Overload/Compaction (BIN) $60.00
Overload/Compaction (CART) $25.00
Extra Bag Garbage $15.00
Additional Empty BIN Fees vary
Extra Bag Yard Waste $15.00
Steam Clean (1‐6 yard BIN) $95.00
Steam Clean (CART) $15.00
Steam Clean (COMPACTOR/ROLL‐OFF) $225.00
Lock Set‐up Admin Fee $25.00
Lock Single Use Fee $5.00
Lock Purchase Fee $20.00
Lock Bar Bin Set‐up Fee $75.00
Overweight Charge Per Ton* $205.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
Bin Repair/Replacement Fee** Fees vary
*(Boxes exceeding 300lbs/yard)
**Fees vary by size up to $1,200, not to exceed current replacement value.
Additional One
Time Empty
Other Charges
* Customers must have a sufficient level of service for the volume of material generated. Requests for 20gal carts require assessment and approval of a Route Manager.
NOTE: All container types and sizes may not be available at all locations depending on a variety of factors including safety, accessibility,
and efficiency. Requests to be assessed and approved by Route Manager.ONE TIME SERVICE FEES REOCCURING CHARGESCollections per Week
CITY OF SAN RAFAEL
EXHIBIT C ‐ SCHEDULE OF RATES
MULTI‐FAMILY DWELLING REFUSE COLLECTION RATES
Rate increase: 2.39%
Effective date: 01/01/2022
MFD CARTS, BINS, ROLL‐OFFS
Garbage 123456
20 gallon cart* $39.82 $79.64 $119.46 $159.28 $199.10 $238.92 $9.19
32 gallon cart $46.84 $93.68 $140.52 $187.36 $234.20 $281.04 $10.81
64 gallon cart $93.68 $187.36 $281.04 $374.72 $468.40 $562.08 $21.62
96 gallon cart $140.52 $281.04 $421.56 $562.08 $702.60 $843.12 $32.43
32 gallon ‐ hill $53.06 $106.12 $159.18 $212.24 $265.30 $318.36 $12.24
64 gallon ‐ hill $106.12 $212.24 $318.36 $424.48 $530.60 $636.72 $24.49
96 gallon ‐ hill $159.18 $318.36 $477.54 $636.72 $795.90 $955.08 $36.73
1 yard bin $291.36 $587.35 $888.06 $1,193.39 $1,503.35 $1,817.93 $67.24
2 yard bin $444.56 $1,019.06 $1,542.55 $2,075.30 $2,617.39 $3,168.74 $102.59
3 yard bin $578.65 $1,060.52 $1,611.73 $2,176.86 $2,755.92 $3,348.88 $133.53
4 yard bin $825.50 $1,521.39 $2,309.84 $3,117.03 $3,870.51 $4,787.11 $190.50
5 yard bin $892.96 $1,767.55 $2,686.16 $3,628.01 $4,593.14 $5,581.51 $206.07
6 yard bin $1,046.58 $2,121.07 $3,223.40 $4,353.63 $5,511.77 $6,697.76 $241.52
10 yard roll‐off $1,494.17 $3,057.71 $4,692.54 $6,396.22 $8,169.66 $10,012.77 $344.81
18 yard roll‐off $2,683.68 $5,492.97 $8,427.70 $11,487.92 $14,673.65 $17,984.94 $619.31
20 yard roll‐off $2,981.96 $6,103.28 $9,364.09 $12,764.33 $16,304.06 $19,983.22 $688.14
25 yard roll‐off $4,171.28 $8,537.82 $12,586.32 $17,156.39 $21,914.12 $26,859.33 $962.60
Organics 123456Additional One
Time Empty
Additional Organics Cart Rental $2.50 $5.00 $7.50 $10.00 $12.50 $15.00 NA
(35 gallon cart) after 4 TOTAL carts per cart per
month
Additional Organics Cart Rental $2.50 $5.00 $7.50 $10.00 $12.50 $15.00 NA
(64 gallon cart) after 4 TOTAL carts per cart per
month.
1 yard $135.02 $270.04 $405.06 $540.08 $675.10 $810.12 $31.16
2 yard $270.04 $540.08 $810.12 $1,080.16 $1,350.20 $1,620.24 $62.32
3 yard $405.06 $810.12 $1,215.18 $1,620.24 $2,025.30 $2,430.36 $93.48
Garbage Compactors (Per empty)
Roll‐off Compactor Tipping fee per ton $128.42 Roll‐off Compactor Hauling charge $288.64
Stationary FL (Per Compacted Yard) $111.53 Roll‐off Compactor Special handling Rates Vary
Service Fee Details
Lock $25.00 Monthly fee
Box rental Fees Vary Minimum Bimonthly fee
Distance < 50ft $6.08 Monthly fee per cart, each way
Distance > 50ft $12.31 Monthly fee per cart, each way
MFD One Time Service Fees Fee
Return Fee ‐ BIN $75.00
Return Fee ‐ CART ‐same day $10.00
Return Fee ‐ CART ‐off day $25.00
Late Fee/Resume Service Fee $35.00
Contamination (BIN) Per Yard $50.00
Contamination (CART) $30.00
Overload/Compaction (BIN) $60.00
Overload/Compaction (CART) $25.00
Additonal Empty Bag $15.00
Extra Bag Yard Waste $10.00
Additional Empty Garbage Fees vary
Steam Clean (BIN) $95.00
Steam Clean (CART) $15.00
Steam Clean (COMPACTOR/ROLL‐OFF) $225.00
Lock Set‐up Admin Fee $25.00
Lock Single Use Fee $5.00
Lock Purchase Fee $20.00
Lock Bar Bin Set‐up Fee $75.00
Overweight Charge Per Ton*$205.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
Bin Repair/Replacement Fee**Fees vary by
size up to
$*(Boxes exceeding 300lbs/yard)
**Fees vary by size not to exceed current replacement value.
NOTE: All container types and sizes may not be available depending on a variety of factors including safety, accessibility, and efficiency. Requests to be assessed and approved by
Route Manager.
NOTE: Minimum service level is 32 gallons per unit or equivalent volume. Decrease to 20 gallon per unit is subject to company review and approval.
NOTE: Up to four (4) Organics carts provided at no additional charge. Additional carts may be rented for a nominal monthly fee. REOCCURING CHARGESCollections per Week Additional One
Time Empty
Other Charges ONE TIME SERVICE FEES
www.r3cgi.com
November 19, 2021
Ms. Cristine Alilovich
Assistant City Manager
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94919
Subject: Review of Marin Sanitary Service’s 2022 Rate Application
Dear Ms. Alilovich,
R3 Consulting Group, Inc. (R3) is pleased to submit this report detailing the results of our review of Marin
Sanitary Service’s (MSS’s) 2022 rate application for the City of San Rafael (City). This review was conducted
pursuant to R3’s engagement with the seven agencies (Agencies) served by MSS, including the City of San
Rafael, County of Marin, Las Gallinas Valley Sanitary District, City of Larkspur, Town of Ross, Town of
Fairfax, and the Town of San Anselmo.
This report summarizes results from our review of MSS’s 2022 indexed rate application per the
streamlined rate setting methodology established in 2019. The methodology is described in the amended
Exhibit B to the Franchise Agreement that the City holds with MSS.
Executive Summary
On August 30, 2021, MSS submitted its application for an increase to its solid waste rates, to be effective
January 1, 2022. This is an indexed year rate adjustment, which primarily projects compensation due to
MSS based on the applicable water-sewer-trash CPI Index (WST). Per Exhibit B, the rate adjustment is
subject to a 2.5% minimum and a 5% maximum rate cap for MSS’ operations.
Based on our review of the rate application, R3 concurs with MSS’s calculated 2022 rate revenue
requirement of $26,630,288 for the City in 2022, which is $620,360 higher than the 2021 rate revenue
requirement of $26,007,929.
The corresponding adjustment to the City’s solid waste rates for 2022 is 2.39%. Table 1, on the following
page, compares the 2021 and 2022 rate revenue requirements and demonstrates the rate adjustment
calculations for 2022.
CONSULTING GROUP, I NC.
RESOURCES· RESPECT· RESPONSI Bl LITY
Review of Marin Sanitary Service’s 2022 Rate Application
November 19, 2021
Page 2 of 8
Table 1: 2022 Rate Adjustment Summary
2021 2022 Dollar
Change
Percentage
Change
Adjustment
to Rates
Collector Operations 16,071,160 16,644,156 572,996 3.57% 2.20%
Garbage Landfilling and Organics
Processing 2,848,336 2,677,356 (170,980) -6.00% -0.66%
State Compliance Database
Subscription 5,693 7,694 2,001 35.14% 0.01%
SB 1383 Compliance 0 208,064 208,064 N/A 0.80%
Illegal Dumping Pilot Program 60,000 103,540 43,540 72.57% 0.17%
Profit Calculation 1,999,460 2,061,742 62,282 3.11% 0.24%
Recyclable Materials Processing 561,702 305,461 (256,241) -45.62% -0.99%
Interest 365,479 378,509 13,030 3.57% 0.05%
Zero Waste Marin Fees 413,818 374,701 (39,117) -9.45% -0.15%
Franchise Fees 2,600,793 2,663,029 62,236 2.39% 0.24%
Other Agency Fees 789,267 1,134,934 345,667 43.80% 1.33%
Annual Rate Revenue
Reconciliation 90,326 0 (90,326) N/A -0.35%
Recycling Property Insurance 64,964 47,486 (17,478) -26.90% -0.07%
SB 1383 Negotiations and
Implementation Support 0 23,617 23,617 N/A 0.09%
Fuel and Oil True-up (Sunsetting in
2021) 51,124 0 (51,124) N/A -0.20%
Garbage Landfilling and Organics
True-up (Sunsetting in 2021) 11,179 0 (11,179) N/A -0.04%
Recycling Losses (Sunsetting in
2021) 74,628 0 (74,628) N/A -0.29%
Total Annual Rate Revenue
Requirement 26,007,929 26,630,288 622,360 2.39% 2.39%
Review of Marin Sanitary Service’s 2022 Rate Application
November 19, 2021
Page 3 of 8
2022 Rate Adjustment Details
Collector Operations
Collector Operations compensates MSS for labor, benefits, general and administrative, depreciation and
lease, maintenance, fuel and oil. Per Exhibit B, compensation for Collector Operations is adjusted using
the CPI index for Water and Sewer and Trash Collection. R3 used publicly available Bureau of Labor
Statistics data to verify the calculated increase of 3.57% to Collector Operations.
The result is $16,644,156 in Collector Operations for the City in 2022, which is an increase of $572,996
compared to 2021.
Garbage and Organics Tipping Fees
Garbage Landfilling and Organics Processing tipping fee projections are calculated using actual tonnages
collected from January 1 through June 30, 2021, which are then annualized to project total 2021 tonnages.
Those tonnages are then multiplied by the projected 2022 tipping fees calculated in accordance with
Exhibit B. This is based on the actual per ton tipping fees for each waste stream category, or if unavailable,
projected tipping fees are calculated using the current year per ton tipping fees escalated by the change
in WST— subject to a minimum increase of 2.5% and a maximum increase of 5.0%.
R3 reviewed MSS’s projected 2021 tons and the 2022 per ton tipping fees for residential garbage,
residential green waste/organics, commercial garbage, commercial mixed waste for processing,
commercial food scraps, and MSS-served Agencies’ waste delivered to MSS. Per Exhibit B, R3 confirmed
that MSS correctly projected tons by category using annualized actual tons for the first six months of the
current rate year and, as actual tipping fees are unavailable, applied the 3.57% WST adjustment to project
2022 per ton tip fees.
The result is $2,677,356 in Garbage and Organics Tipping fees for the City in 2022, which is a decrease of
$170,980 compared to 2021. This decrease is the result of decreased tonnages projected in 2021
compared to 2020.
Database Subscription for Compliance with State Law
The rate setting methodology allows for the recovery of additional revenues associated with costs for
changes in law and/or new State mandates.
For increased operating expenses due to State Laws, including AB 1826 and SB 1383, MSS has included in
its rate application a line item for a compliance database. This item was added and approved in MSS’s
2020 and 2021 Rate Adjustment applications for MSS’s subscription to Recyclist, which is a valuable
reporting tool related to compliance with State Law. MSS expects this line item will continue to be present
in future rate applications.
The result is $7,694 in Database Subscription for the City in 2022, which is an increase of $2,001 compared
to 2021.
Compliance with SB 1383
Similar to the above, MSS is requesting adjustment for anticipated increases in operating expenses
associated with new State Law, SB 1383. SB 1383 takes effect January 1, 2022 and will result in increased
subscriptions to organics services throughout MSS’s service area. Throughout its seven franchises in Marin
Review of Marin Sanitary Service’s 2022 Rate Application
November 19, 2021
Page 4 of 8
County in 2022, MSS will add one new organics recycling collection route (comprised of a truck and driver),
one new outreach and education specialist, and additional equipment to process and clean collected
organic waste.
Subject to approval of an amendment to the Franchise Agreement with MSS, the company will also be
providing compliance monitoring and inspection services, contamination monitoring, outreach and
education, and reporting functions on behalf of the City. The total 2022 revenue recovery for these new
SB 1383 compliance measures for MSS is $387,765.
The result is $208,064 in new SB 1383 Compliance rate revenues for the City in 2022; this item was not
present in the rate revenue requirement in prior rate years.
Illegal Dumping Pilot Program Funding
Since 2020, the City has been piloting and testing programs to reduce and abate incidences of illegal
dumping in the City, in partnership with MSS and others. In 2021, the City allocated $60,000 in rate
revenues for the illegal dumping pilot program. For 2022, City staff is recommending $103,540 in illegal
dumping pilot program funding, which is an increase of $43,540 compared to 2021. Details on the illegal
dumping pilot program and funding opportunity is the subject of a separate R3 memorandum.
Profit Calculation
R3 reviewed the calculation of MSS’s profit, which is a function of total allowable operating expenses
($19,640,810 for the City) divided by the contractually set operating ratio of 90.5% and subtracting the
same sum, rounded to the nearest dollar. MSS’s actual profit achievement will vary depending on the
company’s real revenues and expenses; as such, profit is not guaranteed.
The result is $2,061,742 in Calculated Profit for the City in 2022, which is an increase of $62,282 compared
to 2021. The increase is due to a net increase in allowable operating expenses, which were described in
the previous sections of this report.
Recyclable Materials Processing
A net recyclable materials processing cost is calculated each year to share the risks and rewards of
changing recycling markets between rate payers and MSS.
Per Exhibit B, the Recyclable Materials Processing cost is escalated by the annual change in the WST and
that amount is then divided by the number of all tons of recyclable materials processed at Marin Recycling
Center from July 1 of the prior rate year through June 30 of the current rate year.
The recyclable materials revenue amount is calculated based on 90% of the total revenue received by the
Marin Recycling Center for recyclable materials, which is then divided by the number recyclable material
tons processed at Marin Recycling Center. The calculation does not include income or tons from recyclable
materials processed for third parties or agencies that were not customers of MSS or the Marin Recycling
Center as of December 31, 2018.
For Rate Year 2022, the resulting Net Recyclable Materials Processing Cost Per Ton is $29.59, a decrease
of $24,19 from the 2021 value of $53.78. This reduction is due to increases in the value of recyclable
commodities sold by MSS in the prior year.
Review of Marin Sanitary Service’s 2022 Rate Application
November 19, 2021
Page 5 of 8
The result is $305,461 in Recyclable Materials Processing for the City in 2022, which is a decrease of
$256,241 compared to 2021.
Interest
Interest is based on MSS’s actual interest from its loan amortization schedules for actual and projected
capital expenditures for services under the Agreement as of the last base year review in 2019. This is
increased in the same manner as Collector Operations, as described above, via WST annually.
The result is $378,509 in Interest for the City in 2022, which is an increase of $13,030 compared to 2021.
Zero Waste Marin Fees
Zero Waste Marin Fees are set as a pass through as government fees and, per Exhibit B to the agreements,
changes in such fees result in appropriate adjustments to rates to compensate MSS for increases or
decreases in such fees.
JPA fees included in the annual indexed rate applications for the MSS service area are set to be equal to
the current Zero Waste Marin Fee assessments for the current fiscal year, with 100% of the MSS hauler
fees passed through to the MSS Agencies, and with none of the MSS Transfer Station fees passed through
to the MSS Agencies. For 2022, the total amount passed through to the MSS Agencies is $699,372.
The result is $374,701 in Zero Waste Marin Fees for the City in 2022, which is a decrease of $39,117
compared to 2021. The decrease is due to the fact that the 2021 fees included a true-up for under
collection of fees in 2019 and 2020, which is no longer included in the rate application.
Franchise Fees
Franchise Fees are calculated by multiplying the applicable franchise fee percentage by each agency
served by MSS by the revenues projected for each that Rate Year. The City’s Franchise Fee is 10% of gross
revenues.
The result is $2,663,029 in Franchise Fees for the City in 2022, which is an increase of $62,236 compared
to 2021, and is due to an overall increase in the rate revenue requirement.
Other Agency Fees
Other Agency Fees are calculated and applied to each of the Agencies based on the specific fees set by
those Agencies.
The City charges MSS a Vehicle Impact Fee to cover the cost of road impacts from MSS’s solid waste
collection vehicles. In 2020 the City conducted an updated Vehicle Impact Fee Study, which provided
justification for increasing the fee to $1,480,600 annually. The City opted to gradually increase the fee to
that amount over a three-year period, resulting in an increase from the prior Fee amount of $443,600 in
2020 to $789,267 in 2021. 2022 will be the second “step increase” in the City’s Vehicle Impact Fee,
increasing it to $1,134,934. The Fee is scheduled to increase to $1,480,600 in 2023.
The result is $1,134,934 in Other Agency Fees for the City in 2022, which is an increase of $345,667
compared to 2021.
Review of Marin Sanitary Service’s 2022 Rate Application
November 19, 2021
Page 6 of 8
Annual Rate Revenue Reconciliation
The Rate Revenue Reconciliation item is to reconcile the projected rate revenue from the 2020 rate
adjustment to the actual revenue collected through rates charged during the 2020 rate year.
Due to the impacts of the COVID-19 pandemic, MSS experienced an overall shortfall of $1,497,138 in 2020
billed revenues compared to the annual revenue requirement. However, because MSS also received a
Paycheck Protection Program (PPP) loan in 2020 – and expects that loan to be forgiven – MSS is waiving
the Rate Revenue Reconciliation for 2020, contingent on final determination of the PPP loan forgiveness.
MSS is still awaiting news regarding PPP loan forgiveness; if, in the unlikely event the PPP loan is not
forgiven, MSS requests the ability to revisit the 2020 Rate Revenue Reconciliation.
The result is a reduction in the rate revenue requirement of $90,326 for the City in 2022.
Extraordinary Items
Items that are outside of the categories as defined in the Exhibit B Adjustment methodology may be
proposed by MSS as extraordinary items. Two such items are proposed by MSS for 2022 and are
described below.
Recycling Property Insurance
Property insurance for recycling processing facilities have gone up across the country for circumstances
outside of MSS’s control. MSS has previously and separately briefed the Agencies on this item, and R3 is
aware of the market circumstances surrounding it. R3 finds that this extraordinary item is supported and
reasonable. The 2021 recycling property insurance extraordinary item proposed by MSS was $124,662,
and for 2022 it is $90,726.
The result is $47,486 in Recycling Property Insurance for the City in 2022, which is a decrease of $17,478
compared to 2021.
Funding for SB 1383 Contract Negotiations and Implementation
The MSS served Agencies have contracted with R3 to provide support for negotiation of an amendment
to the MSS franchise agreements with the Agencies, effectuating the new services, terms and conditions
for SB 1383 compliance. That contract also includes a contingency for support to the Agencies in
implementing SB 1383 in 2022. R3’s expenses for that work are not to exceed $44,380 and are recoverable
via the solid waste rates so as not to be direct expenses to the Agencies.
The result is $23,617 in SB 1383 Contract Negotiations and Implementation support for the City in 2022.
Three Prior Line Items Sunsetting in 2022
Rate adjustment calculations in 2019, 2020 and 2021 included three line-item categories that are
sunsetting and will no longer be included as rate adjustment considerations in 2022. These include true
ups for fuel costs ($51,124), disposal costs ($11,179), and recycling losses ($74,628). The result of these
items sunsetting is a reduction in the City’s rate revenue requirement of $136,931 in 2022.
Review of Marin Sanitary Service’s 2022 Rate Application
November 19, 2021
Page 7 of 8
Survey of Comparable Rates
Attachment 1 shows the results of R3's survey of solid waste rates as of October 2021 for agencies located
throughout the Bay Area. For the purpose of comparing the MSS Agencies’ rates to other agencies we
have applied the 2022 rate increases for MSS served Agencies and compared those anticipated 2022 rates
to the current rates for all other agencies. It is anticipated that rates for other agencies will also increase
in 2022, and since this comparison uses 2022 rates for the MSS Agencies, the rate comparison will become
more favorable as other entities adopt 2022 rates.
Figure 1, below, shows a summary of Marin rates for residential customers with 30-35 gallon garbage
service. Bars shown in blue are 2021/22 rates for Mill Valley Refuse Service; purple is the 2021/22 rate for
Tamalpais Community Services District; red are 2021/22 rates for Recology Marin, and; green are
proposed 2022 MSS rates. The grey bar is the average for all of Marin County, excluding the MSS Agencies.
Overall, 2022 rates for the Agencies served by MSS are less than or equal to the Marin County average.
Figure 1
Marin County Rates: MSS 2022 Proposed Residential 32-gal Can compared to Current 30-35-gal Can
Rates and Marin County Average of $51.18 (Excluding MSS Rates)
If approved, 2022 monthly residential rates for a 32-gallon container (the most frequent residential
service level) for the City will be $46.84. The City’s commercial rates for a 3-cubic yard bin serviced 1 time
per week will be $578.65.
These survey results are presented as an indication of the reasonableness of the resulting rates for 2022.
Conclusions should not be immediately drawn from this information because rate comparisons are
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
City of BelvedereCity of SausalitoTown of TiburonTown of Corte MaderaCity of Mill ValleyTamalpais Com. Service Dist.Novato Sanitary DistrictWest MarinTown of FairfaxTown of San AnselmoLas Gallinas Valley Sanitary DistrictCity of LarkspurTown of RossCounty of MarinCity of San RafaelI
Review of Marin Sanitary Service’s 2022 Rate Application
November 19, 2021
Page 8 of 8
intrinsically difficult and often misleading. This results from differences in issues such as those listed
below:
§ The types and ranges of services provided;
§ The level of subscription to solid waste services by residential, commercial, and industrial
customers;
§ The ratio of residential to commercial and industrial customers;
§ The terrain in which the service is performed;
§ Disposal, transfer and process costs, and amounts per capita;
§ Rate structures; and
§ Governmental fees (e.g., franchise fees, vehicle impact fees, etc.).
* * * * * * *
R3 appreciates the opportunity to be of service to the City. Should you have any questions regarding this
report or need any additional information, please contact me by phone at (510) 292-0853 or by email at
gschultz@r3cgi.com.
Sincerely,
R3 CONSULTING GROUP
Mr. Garth Schultz | Principal
www.r3cgi.com
Illegal Dumping Reduction Pilot Program Overview
Background
Illegal Dumping Reduction Goal
The City of San Rafael has established reduction of illegal dumping as a high priority area for City action,
with a goal to achieve 50% reduction in illegal dumping by the end of 2025. Achieving this goal will require
coordination between multiple City departments, addressing various factors related to illegal dumping.
2018-2020 Pilot Program Results
The City conducted a pilot project in 2018-2019 that tested implementation of “bulky waste” collection
and recycling events as a means of to reducing illegal dumping, with the results reported in the City of San
Rafael Illegal Dumping Pilot Report (Bulky Waste Collection and Recycling Events). The 2018-2019 pilot
project found that bulky waste collection events resulted in a noticeable reduction in illegal dumping. The
report recommended further implementation of illegal dumping reduction actions in the City, including
continuation of the bulky waste collection events (which proved successful) as well as testing of new
programs to reduce the incidence of – and clean-up response to – illegal dumping in the City.
In 2020, despite the unique challenges posed by the COVID-19 pandemic, the following were achieved:
• Bulky waste drop-off events resulted in 190 cubic yards of material collected over three (3) days.
• Free dumping vouchers for tenants of Bret Harte, Canal, and Gerstle Park resulted in the collection
of 258 additional cubic years of material.
A new program offering free dump coupons to commercial property owners (and promoted by email) was
also initiated but zero participation was recorded.
Overall, Bulky waste drop-off events proved to be a success, with costs coming in lower than originally
anticipated and program participation remaining intact during the pandemic.
2021 Pilot Program Results
While 2021 brought continued complications arising from COVID-19, the illegal dumping program was
able to build on lessons learned in 2020 and gain a stronger understanding of pilot effectiveness. The
following outcomes were recorded:
• Bulky waste drop-off events were increased from three (3) to six (6) days, resulting in 456 cubic
yards of material collected (a 140% increase over 2020).
• Free dumping vouchers for tenants of Bret Harte, Canal, and Gerstle Park resulted in the collection
of 197 additional cubic years of material, less than the total achieved in 2020.
To: Cory Bytof, Sustainability Program Manager, City of San Rafael
From: Garth Schultz and Nate Forst, R3 Consulting Group
Date: November 19, 2021
Subject: 2022 Illegal Dumping Reduction Pilot Program Funding via 2022 Solid Waste Rates
CONSULTING GROUP, I NC .
RESOURCES · RESPECT· RES PONSIBIL I TY
Mr. Cory Bytof
2022 Illegal Dumping Reduction Pilot Program Funding via 2022 Solid Waste Rates
November 19, 2021
Page 2 of 4
• Free dump coupons were again offered to commercial property owners (and promoted by email)
but zero participation was recorded a second year in a row.
Further scaling the bulky waste drop-off events generated a clear “return on impact” of funds invested.
Not only did the program reach more users and collect significantly more material in 2021, it did so at a
cost per cubic yard collected that was significantly lower than the Multi-Family Voucher program,1
solidifying it as the key driver of value among pilot programs attempted thus far by the City.
Overall pilot program costs again came in below expectations (approximately $35,000 under budget). This
was primarily due to Mattress Recycling Council’s support for a substantial portion of CCNB’s costs
associated with the bulky item pilot, and a lack of participation in the commercial free dump coupon
program. If the Council wishes, unspent funds may be applied (in whole or in part) to continuation of the
pilot program in 2021. City staff and R3 recommend rolling those funds forward to implementation of the
following 2022 pilot program.
2022 Pilot Program and Funding Opportunity
The City has an opportunity to provide for significant further expansion of the proven bulky waste
collection events, and support exploration of a new pilot, with an emphasis on altering outreach to
improve success. This could be accomplished via utilization of the unspent 2021 funds, combined use of
Zero Waste Marin grant funds, and a small increase in the 2022 solid waste rates.
R3 Consulting Group, Inc. (R3) has separately calculated the 2022 solid waste rate adjustment for San
Rafael based on the Franchise Agreement between the City and Marin Sanitary Service (MSS), and the City
may choose to direct an additional increase in order to fund $103,540 in approximate MSS and City costs
for a “2022 Illegal Dumping Reduction Pilot Program” (Pilot Program) that would continue to implement
the actions recommended in the City of San Rafael Illegal Dumping Pilot Report (Bulky Waste Collection
and Recycling Events). Collecting $103,540 in additional funding for the Pilot Program in 2022 would result
in a 0.49% additional increase in solid waste rates (resulting in a total 2022 solid waste rate adjustment of
2.39% in 2022).
Overview of Proposed 2022 Illegal Dumping Reduction Pilot Program
If funded, the City would work with MSS, prior pilot project partner Gigantic Idea Studios (GIS), R3 ,
Conservation Corps North Bay and other key stakeholders identified by the City to conduct additional pilot
program expansions, discovery, and research in 2022.
Building on 2021 data and lessons learned, the project team would implement the following services:
▪ Increase Bulky Waste Drop-off Events: Support reduction of illegal dumping from multifamily
residential properties by making the “bulky waste drop-off events” a monthly event at Pickleweed
Park. This would allow for further community integration of an already highly successful and
popular pilot program, offer the ability to refine and improve program elements and outreach,
and provide more data and insight into the costs and effectiveness of scaling the pilot for the
purposes of considering a more codified ongoing program. The City anticipates additional support
to offer twelve “debris box events,” providing access to service for a test population of
approximately 6,800 housing units. The would be the key driver of program efforts in 2022 and
1 Bulky waste drop-off events recorded a cost per cubic yard of $78, as compared with a cost of $113 per cubic yard
for the Multi-family voucher pilot.
Mr. Cory Bytof
2022 Illegal Dumping Reduction Pilot Program Funding via 2022 Solid Waste Rates
November 19, 2021
Page 3 of 4
the potentially the foundation of a longer-term commitment to illegal dumping programming in
San Rafael.
▪ Develop Free-on Call Bulky Item Pickup Program: Research and develop a new pilot aimed at
reducing illegal dumping generation from residential properties via a “free on-call bulky item
pickup program.” This would serve to address an essential barrier to mitigating illegal dumping in
San Rafael - lack of transportation. Even with cost incentives in place to encourage proper
disposal, lack of transportation to facilities and drop-off events still prevents many residents from
accessing disposal options, and this leads to unwanted dumping. Current efforts are already
underway to secure a grant from the Mattress Recycling Council (MRC) that would support usage
of a vehicle, in partnership with the CCNB, that could be utilized in an on-call capacity to target
bulky waste pickups in San Rafael. The City anticipates leveraging support from MRC and/or other
entities and continuing to lay the foundation of a new pilot program that addresses this particular
issue.
▪ Continue with Prior MFD Voucher and Commercial Coupon Programs: Maintain a stock of
residential “vouchers” and by-request “commercial coupons” for multi-family tenants and local
businesses, respectively. These amenities provide alternatives for both populations to mitigate
disposal of problematic materials at no-cost at MSS’s public facility in San Rafael. However, given
limited utilization of these pilots in the past, funds will be restricted only to ensuring that
“vouchers” and by-request “commercial coupons” remain available for those who request them
and for specific “hot spot” campaigns to encourage collaboration. The City would work with MSS
to monitor and track businesses that participated in this program.
Partnership with Marin Sanitary Service
MSS has been briefed on the details of the proposal to increase rates to fund implementation of the Pilot
Program and has expressed its willingness to be the City’s operational partner, and MSS supports the rate
funding of Pilot Program costs.
R3’s engagement in the project is to support the City and MSS as the City’s solid waste financial and
programs consultant by developing the financial and operational parameters that will both help keep
costs within the overall budget and will support the City’s analysis of the financial and operational Pilot
Program results to establish findings about operational efficiency and cost effectiveness for future
Citywide illegal dumping reduction programs. Finally, R3 will also assist in evaluating programmatic data
and reports, participate in meetings with City and the City’s consultants, and provide input on pilot design.
Reporting and Next Steps for 2022
After completion, the project team would prepare a memo on the Pilot Program results, anticipated in
the Fall of 2022. The City will then present the results to Council and make recommendations about next
steps to continue progress in 2023 to reduce illegal dumping, including projections of the potential for
citywide implementation of the program elements tested in 2022 (preliminary estimates subject to
refinement based on Pilot Program results are included at the end of the memorandum).
Pilot Program Rate Impact and Draft Budget
The City has an opportunity to set the 2022 solid waste rates to secure funding for the Pilot Program as
part of the 2021 rate hearing.
Mr. Cory Bytof 2022 Illegal Dumping Reduction Pilot Program Funding via 2022 Solid Waste Rates November 19, 2021 Page 4 of 4
City May Direct Change in Scope Per Section IV. of Exhibit B of the Franchise Agreement with MSS, the City may direct a “change in scope” to the services provided by MSS, and the City may secure funding for the Pilot Program by directing such a change in scope. The City may seek to fund $103,540 for the Pilot Program by adopting a 2022 rate adjustment at 0.49% above the base rate adjustment that has been separately reported to the City. Funding of the Pilot Program is entirely at the City’s discretion and may be funded at a greater or lesser
amount, or at a later time, if desired.
Draft Pilot Program Budget
A draft budget for the Pilot Program, at an anticipated total expense of approximately $159,000 is
provided in Table 1. Note that the program details included in this memorandum have been adjusted to
correspond with the recommended $159,000 program budget. Funding for the $159,000 proposed Pilot
Program budget is based on: approximately $35,000 in unspent 2021 funds (carried forward to 2022);
$103,540 in proposed new funds from 2022 rate adjustment (as described above), and; $20,000 in Zero
Waste Grant Funding to the City from Zero Waste Marin.
Table 1: Proposed 2022 Illegal Dumping Reduction Pilot Program Budget
2022 Budge t
Implementation and Ongoing Coordination
Di scovery, Pil ot Desi gn, and Coordi nation with City Program (GIS)2,5 00$
Operations & Fi nancial Analysi s and Coordi nation with City Program (R3)5,0 00$
Subtotal 7,5 00$
M onthly Debris Box Days (1 2 Total Eve nts)
Conservati on Corps (Monthly Events at Pi ckleweed Park, Jackson's Hardware (CCNB)2 5,3 90$
Outreac h and Expenses (GIS)2 8,0 00$
Outreach and Expenses (CCNB)7,9 74$
Debri s box rental and bul ky waste di sposal 2 9,2 84$
Subtotal 9 0,6 48$
M FD Collateral
Out reach and Expenses New sel f-mailer, print and mai l, MFD Manager Ki t (GIS)1 5,0 00$
Subtotal 1 5,0 00$
Vouc he r and Comme rc ial Coupon Collateral
Reprint Coupons and vouchers (GIS)4,0 00$
Bulky waste di sposal 1 0,2 75$
Subtotal 1 4,2 75$
Explore on Call bulky Item Pilot
Support Analysi s and Coordi nation with City Program (R3 )9,5 00$
Program Dev. (CCNB)5,0 00$
Subtotal 1 4,5 00$
Environme ntal Design Mini Grants
Mi ni -grants (1 0) Funding 1 0,0 00$
Subtotal 1 0,0 00$
Pilot Conclusion and Next Ste ps
As needed, pre-approved by Cli ent (GIS)2,5 00$
Sol id Waste Operations and Financial Analysis and Report ing (R3 )5,0 00$
Subtotal 7,5 00$
Grand Total 1 5 9,4 23$
San Rafael 2022 Exten ded Illeg al Du mping Ab atemen t Pilot Pro gram
Bu dget
.
RESOLUTION NO. 15010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING A FOURTH 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 Marin 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 further amended this
agreement on October 1, 2012 with the Second Amendment to Amendment and Restatement of
Collection Agreement; and
WHEREAS, the City of San Rafael and Marin Sanitary Service further amended this
agreement on December 17, 2018 with the Third Amendment to Amendment and Restatement of
Collection Agreement; and
WHEREAS, the City of San Rafael and Marin Sanitary Service now desire a fourth
amendment to the Franchise Agreement to update Marin Sanitary Service services to comply with
Senate Bill 1383, 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, on December 6, 2021 the City Council held a duly noticed public hearing to
consider the rate application request and receive public testimony thereon; and,
WHEREAS, the City Council has reviewed and duly considered the Staff Report, and
documents and other oral and written evidence presented at the hearing;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES
RESOLVE, DETERMINE AS FOLLOWS:
1) The “Fourth Amendment to the Amendment and Restatement of Collection Agreement of
the City of San Rafael with Marin Sanitary Service” attached hereto as "Exhibit E” and
incorporated herein by reference, is hereby approved and shall be included as part of the
Amendment and Restatement of Collection Agreement dated September 4, 2001. The City
Manager is hereby authorized to execute the Fourth Amendment, subject to final approval
as to form by the City Attorney.
I, Lindsay Lara, 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, the 6th day of December 2021, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
FOURTH AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
This FOURTH AMENDMENT to the Amendment and Restatement of Collection Agreement between the
CITY OF SAN RAFAEL (CITY) and MARIN SANITARY SERVICE (COMPANY) is made and entered into this w7-I?
day of i3eeenther 40i -t- r
A'pv. 1, 11 j�oOZ&Z
WHEREAS, the CITY and COMPANY entered into a written agreement on September 4, 2001, as amended
on March 1, 2005, November 14, 2012, and December 17, 2018 (together the "Agreement") pursuant to
which the COMPANY renders Solid Waste, Recyclable Material and Green Waste collection, processing
and disposal services to businesses, residents and government institutions in the CITY; and
WHEREAS, certain state laws require cities, counties, and special districts providing solid waste collection
services to adopt ordinances and take other measures to reduce the amount of organic and recyclable
materials deposited in landfills from commercial and residential generators, more specifically the Short -
Lived Climate Pollutants Organic Waste Reduction regulations adopted pursuant to Senate Bill 1383
(Statutes of 2016) set forth in the California Code of Regulations (the "SB 1383 Regulations").
WHEREAS, the SB 1383 Regulations require cities, counties, and special districts providing solid waste
collection services to, by January 1, 2022, provide certain new programs; and
WHEREAS, pursuant to the terms and conditions of the Agreement, CITY and COMPANY met and
conferred and have agreed that COMPANY will be responsible for the programs provided for herein; and
WHEREAS, CITY and COMPANY mutually desire to amend the Agreement to describe these programs in
more detail.
NOW, THEREFORE, it is mutually agreed as follows:
1. Effective Date. This Amendment shall take effect January 1, 2022.
2. Definitions. For purposes of this Amendment, the terms set forth in Exhibit A, attached hereto and
incorporated herein, shall have the meanings given to them in such exhibit.
3. Three -Container Organ ic Waste Collection Services.
3.1. Phased Implementation. CITY and COMPANY acknowledge that COMPANY's Organic Waste
Collection routes must be expanded to satisfy the requirements of the SB 1383 Regulations, and
that new collection trucks must be procured by COMPANY in order to provide such services.
Beginning January 1, 2022 all new customers will be provided base level of collection service
including Recycling Container, Organics Container and Garbage Container collection service.
Between January 1, 2022 and December 31, 2023, COMPANY shall continue and expand its
Organic Waste collection service to existing customers within CITY. By January 1, 2024, COMPANY
shall provide Organic Waste collection service to all of its customers within CITY who are
subscribed to and pay for Solid Waste collection service, unless (i) the customer is categorically
exempted under CITY's municipal code from the requirement to subscribe for Organic Waste
collection service, or (ii) the customer qualifies for and is granted a State- or CITY -issued waiver.
COMPANY will work with customers to appropriately size collection containers such that source -
separation of all materials is possible without any overflow of material, and if any disputes arise
or overages occur, the CITY will make the final determination on proper container size.
Page 1 of 10
FOURTH AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
4. Container Colors.
4.1. General Requirement. COMPANY shall ensure that each Container that it newly purchases after
January 1, 2022 and provides to a customer serviced under the Agreement conforms to the
following designations in distinct colors as required or permitted by CalRecycle: Garbage
Containers for collection of Solid Waste, Recycling Containers for collection of Recyclable
Materials, and Organics Containers for collection of Organic Waste. In addition, COMPANY shall
ensure that all Containers it uses to provide such services to customers serviced under the
Agreement conform to such color scheme by January 1, 2036.
4.2. 5 ecific Material T es. Paper products and printing and writing paper, each as defined in the SB
1383 Regulations, may be placed in either the Recycling Container or the Organics Container.
Carpet and textiles may not be placed in either the Recycling Container or the Organics Container.
5. Container Labels.
5.1. General Requirement. COMPANY shall ensure that each Container that it newly purchases after
January 1, 2022 and provides to a customer serviced under the Agreement shall be labeled or
imprinted with language and/or graphics that clearly indicates the primary items accepted and
the primary items that are Prohibited Container Contaminants for that Container type.
COMPANY may comply with this section by using model labeling provided by CalRecycle.
6. Route Reviews.
6.1. General Requirement. At least once annually, beginning in 2022, COMPANY shall conduct a Route
Review for each Hauler Route. The number of Containers to review per Hauler Route shall be
calculated on the basis of the number of garbage accounts provided service by a specific Hauler
Route for one week. For example, "Route A" collects garbage from 250 accounts, 4 days per week
for a total of 1,000 accounts per week; include a minimum of 25 accounts for Route Review of
"Route A". For each Route Review of a Hauler Route, COMPANY shall inspect at least the
following minimum number of Containers but may inspect more if COMPANY deems necessary;
and shall inspect all Containers placed for collection (including Recycling Containers, Organics
Containers, and Garbage Containers). Each inspection shall involve lifting the Container lid and
observingthe contents but shall not require COMPANY to disturb the contents or open any bags.
COMPANY may select the Containers to be inspected at random, or (if mutually agreed with CITY)
by any other method not prohibited under the SB 1383 Regulations. For the avoidance of doubt,
COMPANY shall not be required to annually inspect every Container on a Hauler Route.
COMPANY shall include the results of each Route Review in its next regularly scheduled report
to CITY, as required by Section 9.
Route Size # garbage accounts week
Minimum Number of Containers
Less than 1,500
25
1,500-3,999
30
4,000-6,999
35
7,000 or more
40
Page 2 of 10
FOURTH AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
6.2. Notice of Contamination. If COMPANY observes Prohibited Container Contaminants in a
Container during a Route Review comprising ten percent or more of observable container
volume, COMPANY shall notify the customer of the violation in writing. The written notice shall
include information regarding the requirement to properly separate materials into the
appropriate Containers. The notice may be left on the customer's Container, gate, or door at the
time the violation is discovered, and/or be mailed, e-mailed, electronically messaged or delivered
personally to the customer within 30 days. COMPANY may dispose of the contents of any
Container found to contain Prohibited Container Contaminants and may charge a contamination
fee not to exceed the fee in Exhibit C. The notice shall be provided in English and Spanish.
7. Compliance Reviews.
7.1. General Requirement. At least once annually, beginning in 2022, COMPANY shall review the
records of its Commercial and Multi -Family customers in CITY that are subscribed for at least two
(2) cubic yards per week of combined Solid Waste, Organic Waste and Recyclable Materials
service, to determine whether such customers are subscribed for Organic Waste collection
service or have an applicable waiver. COMPANY shall include the results of each compliance
review in its next regularly scheduled report to CITY, as required by Section 9.
7.2. Site Visit Re uirement. Based on COMPANY's review of the list of customers requiring site visit
compiled in accordance with section 7.1 above, COMPANY shall conduct an annual site visit to
each Commercial and Multi -Family customer in CITY that is determined to not be enrolled in 3 -
container organic waste collection service and not be eligible for a waiver based on the CITY
determination, to encourage those businesses to sign up for SB 1383 compliant Organics Waste
service and provide educational material about the law's requirements.
8. Education & Outreach.
8.1. Prior to February 1, 2022, and annually thereafter, COMPANY shall provide the following to all
its customers under the Agreement:
8.1.1. Information on the customer's requirements to properly separate materials in appropriate
containers.
8.1.2.Information on methods for: the prevention of Organic Waste generation, recycling Organic
Waste on-site, sending Organic Waste to community composting, and any other local
requirements regarding Organic Waste.
8.1.3.lnformation regarding the methane reduction benefits of reducing the landfill disposal of
Organic Waste, and the methods of Organic Waste recovery contemplated by the
Agreement.
8.1.4.Information regarding how to recover Organic Waste.
8.1.5.Information related to the public health and safety and environmental impacts associated
with the landfill disposal of Organic Waste.
Page 3 of 10
FOURTH AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
8.2. The above information will be provided, at a minimum, through print and/or electronic media,
and may also be provided through workshops, meetings and/or on-site visits.
8.3. COMPANY shall provide an educational webpage which includes downloadable copies of all the
materials described in Section 8.1, as well as an educational brochure to be provided by CITY for
edible food recovery outreach,
8.4. Educational materials provided pursuant to the above shall be translated into Spanish.
8.5. COMPANY shall provide educational materials to customers discovered to be out of compliance
with the SB 1383 Regulations requirements and report a list of such customers as well as actions
taken to the CITY on a periodic basis as required by CITY.
9. Waivers. COMPANY shall be responsible for the distribution, collection and evaluation of waiver
applications as appropriate and provide the CITY a recommendation to accept or deny waiver
requests. COMPANY shall develop waiver application forms and shall provide them to CITY for CITY
approval prior to use. COMPANY shall evaluate requests for exemption or waiver from the Act's
requirements and provide the CITY periodic recommendations and supporting documentation to
deny or approve waivers, including a site visit and re-evaluation at least every five years as required
by the SB 1383 Regulations.
10. Edible Food Recover+ COMPANY shall provide CITY with a list of Tier One commercial edible food
generators located in their jurisdiction by January 1, 2022 and annually thereafter. COMPANY shall
provide CITY with a list of Tier Two commercial edible food generators located within their jurisdiction
by January 1, 2024 and annual thereafter.
11. Reporting.
11.1. Beginning January 1, 2022, COMPANY shall provide the following information to CITY
annually, by February 15 of the year following the reporting year:
11.1.1. For information provided by COMPANY pursuant to Section 8 above:
(a) Copies of all such information (including flyers, brochures, newsletters, invoice
messaging, website and social media postings, emails, and other electronic
messages).
(b) The date the information was disseminated or the direct contact made. For website
and social media postings, this shall be the date posted.
(c) To whom the information was disseminated or the direct contact made. For mass
distributions such as mailings or bill inserts, COMPANY may provide the type and
number of accounts receiving the information, rather than listing each recipient
individually.
11.1.2. For Route Reviews and Compliance Reviews'
(a) The date the review was conducted.
Page 4 of 10
FOURTH AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
(b) The name and title of each person conducting the review.
(c) A list of the account names and addresses covered by the review.
(d) For Route Reviews, a description of each Hauler Route reviewed, including
COMPANY's route number and a description of the Hauler Route area.
(e) For Route Reviews, the results of such review (i.e., the addresses where any
Prohibited Container Contaminants were found), and any photographs taken.
(f) For Compliance Reviews, the results of such review (i.e., COMPANY's findings as to
whether the customers reviewed are subscribed for Organic Waste collection service,
have an applicable waiver, or neither) and any relevant evidence supporting such
findings (e.g. account records).
(g) Copies of any educational materials issued pursuant to such reviews.
11.1.3. Documentation relating to observed Prohibited Container Contaminants, whether
observed during Route Reviews or otherwise:
(a) Copies of the form of each notice issued to customers for Prohibited Container
Contaminants, as well as, for each such form, a list of the customers to which such
notice was issued, the date of issuance, the customer's name and service address,
and the reason for issuance (if the form is used for multiple reasons). This information
will also be provided monthly to any other government entity approved by the CITY,
including but not limited to Zero Waste Marin requests.
(b) The number of times notices were issued to customers for Prohibited Container
Contaminants.
(c) The number of Containers where the contents were disposed due to observation of
Prohibited Container Contaminants.
11.1.4. A description of COMPANY's process for determining the level of Container
contamination under the Agreement.
11.1.5. Reports to CITY on customers discovered to be out of compliance with the SB 1383
Regulations, including a list of the customers, the type of violation, actions taken to educate
those customers, and contact information for those customers. Such reports shall be
provided periodically as required by CITY. .
12. Section 18988.1 and 18988.2 Compliance. COMPANY is responsible for delivery of all Solid Waste to
properly permitted disposal facilities, transfer stations, recyclable materials processing facilities,
organics processing facilities, and C&D processing facilities as listed in Exhibit B. The list may be
amended from time to time by COMPANY, subject to CITY approval of the amended list. Failure to
comply with this provision will result in the levy of any Administrative Charge or Penalty that may be
provided in the San Rafael Municipal Code and may result in COMPANY being in default under this
Agreement. CITY hereby approves delivery of Organic Waste to such facility(ies). COMPANY shall
Page 5 of 10
FOURTH AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
comply with its obligations under this Amendment and the obligations that by operation of law are
imposed upon it directly pursuant to Chapter 12 of the SB 1383 Regulations.
13. Future Changes. The parties acknowledge that future changes to this Amendment or the Agreement
may be desirable to assist the parties with their respective compliance obligations under the SB 1383
Regulations or subsequent amendments thereto or interpretations thereof. The parties agree to
negotiate any such proposed changes in good faith. The foregoing shall not be deemed to limit either
party's rights or remedies under the Agreement.
14. Miscellaneous. In the event of any conflict between this Amendment and the Agreement, this
Amendment shall govern. Section headings in this Amendment are for convenience only and shall not
be used in the interpretation of this Amendment. This Amendment may be executed in counterparts
and/or by electronic signature (e.g., DocuSign). As used in this Amendment, "including" and its
variants mean "including without limitation."
[Remainder of this page intentionally left blank]
Page 6 of 10
FOURTH AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
IN WITNESS WHEREOF, this Amendment is entered into as of the date first written above.
CITY OF SAN RAFAEL -
By; _ N,
NameJ i 5� hu tz
Title:
Date; —'t Z
APPROVED AS TO FORM:
r
r�
i
ROBtYM F. EPSTEIN, CityA ey
ATTEST:
LINDSAY LARA, City Clerk
MARIN
By:CT7l,U
Name 4 IN
Title;
'Nr'cta i oto.
Date: �q
Page 7 of 10
FOURTH AMENDMENT TO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
Exhibit A
DEFINITIONS
"Act" means the California Integrated Waste Management Act of 1989 (sometimes referred to as CIWMA
or "AB 939"), Public Resources Code § 40000 and following as it may be amended, including but not
limited to, the Jobs and Recycling Act of 2011 (AB 341), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins,
SB 1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short -Lived
Climate Pollutants Bill of 2016 (SB 1383), and as implemented by the regulations of CalRecycle.
"Recycling Container" means a Container for the collection of recyclable materials as defined in the
Agreement. The Recycling Container shall be colored as defined in the SB 1383 Regulations.
"Container" means any Cart, Bin or Debris Box.
"Garbage Container" means a Container for the collection of Garbage, which does not include Organic
Waste or recyclable materials as defined in the Agreement. The Garbage Container shall be colored as
defined in the SB 1383 Regulations.
"Organics Container" means a Container forthe collection of Organic Waste and colored as defined in the
SB 1383 Regulations. Hardware such as hinges and wheels may be any color.
"Food Waste Container" means a Containerforthe collection of Commercial Food Waste only and colored
as defined in the SB 1383 Regulations.
"Hauler Route" means the designated weekly itinerary or sequence of stops scheduled to be performed
by one collection vehicle providing regularly scheduled Solid Waste, Recyclable Material or Organic Waste
collection services (not on-call or Bulky Item/Abandoned Waste) within the COMPANY's collection service
area under the Agreement.
"Organic Waste" means wastes comprising material originated from living organisms and their metabolic
waste products, including food, green material, landscape and pruning waste, clean unpainted/untreated
wood (with no nails, wire, etc.), paper products, and printing and writing paper, but excluding textiles and
carpets, manure, biosolids, digestate, sludges, non-compostable paper, Construction & Demolition Debris,
and Hazardous Waste. No material shall be considered Organic Waste unless it has been segregated by
the customer for separate collection.
"Prohibited Container Contaminants" means any of the following:
(a) Non -Organic Waste placed in the Organics Container, including but not limited to textiles and
carpets, manure, biosolids, digestate, sludges, non-compostable paper, Construction &
Demolition Debris, and Hazardous Waste;
(b) Organic Waste placed in the Garbage Container that is specifically identified under the
Agreement for collection in the Organics Container or Recycling Container;
(c) Organic Waste placed in the Recycling Container that is specifically identified under the
Agreementfor collection in the Organics Container. Paper products and printing and writing paper
Page 8 of 10
FOURTH AMENDMENTTO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
may be considered acceptable and not considered Prohibited Container Contaminants if they are
placed in the Recycling Container.
"Route Review" means a visual inspection of Containers along a Hauler Route for the purpose of
identifying Prohibited Container Contaminants, which may include mechanical inspection methods such
as use of cameras.
"SB 1383 Regulations" means the Short-lived Climate Pollutants (SLCP): Organic Waste Reductions
regulations adopted by the California Department of Resources Recycling and Recovery ("CalRecycle") in
2020 and found in California Code of Regulations Title 14, Division 7, Chapter 12.
For purposes ofthisAmendment, the following terms (whether or not capitalized) shall have the meanings
given to them in the SB 1383 Regulations, unless the context indicates a different meaning was intended:
biosolids, digestate, food, non-compostable paper, paper products, printing and writing paper, sludges.
Page 9 of 10
FOURTH AMENDMENTTO THE AMENDMENT AND RESTATEMENT OF COLLECTION
AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE
Exhibit B
FACILITIES
Marin Sanitary Service Transfer Station
1050 Andersen Drive San Rafael CA 94912
Marin Recycling Center
535 Jacoby Street San Rafael CA 94912
Marin Resource Recovery Center
535 Jacoby Street San Rafael CA 94901
Page 10 of 10
CITY OF SAN RAFAEL
NOTICE OF PUBLIC HEARING
The City Council of the City of San Rafael will hold a public hearing:
PURPOSE: Public Hearing: To consider two actions concerning the City’s
agreement with Marin Sanitary Service for Refuse Collection
and Recycling:
1) A request by Marin Sanitary Service for a rate increase of
2.39% for refuse collection and recycling services and
adoption of a Resolution setting maximum rates for the year
2022; and
2) Adoption of a Resolution amending the agreement regarding
changes in services to comply with State law SB 1383.
DATE/TIME/PLACE: Monday, December 6, 2021, at 7:00 p.m.
Consistent with Executive Orders No.-25-20 and No. N-29-20
from the Executive Department of the State of California and
the Marin County Shelter in Place Order, the San Rafael City
Council hearing of December 6, 2021 will not be physically
open to the public and will be streamed live to YouTube at
www.youtube.com/cityofsanrafael. Instructions on how to
participate online will be available on the YouTube channel.
You will also be able to listen/speak by telephone. The number
will be provided on agenda.
WHAT WILL HAPPEN: You may comment on the proposed Resolutions. The
City Council will consider all public testimony and will
then decide whether to approve the Resolution.
IF YOU CANNOT ATTEND: You may send a letter to City Clerk, City of San Rafael,
1400 Fifth Avenue, San Rafael, CA 94901 or by email
Lindsay.Lara@cityofsanrafael.org.
FOR MORE INFORMATION: You may contact Cory Bytof, Sustainability Program Manager
at (415) 485-3407 or cory.bytof@cityofsanrafael.org. Office
hours are Monday through Friday, 8:30 a.m. to 5:00 p.m.
SAN RAFAEL CITY COUNCIL
/s/ LINDSAY LARA
LINDSAY LARA, City Clerk