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HomeMy WebLinkAboutCM Marin Sanitary Services Rates for 2024 PPTMarin Sanitary Service 2024 Rate Review &Illegal Dumping Program Update San Rafael City Council December 18, 2023 1 Overview Marin Sanitary Service Rate Review December 18, 2023 Tonight’s Presentation: 1.2024 Rate Review & Franchise Fee Study 2.Illegal Dumping Pilot Program 3.Public Hearing 2 2024 Rate Review 3 Marin Sanitary Service Rate Review December 18, 2023 Overview Background •State allows cities to regulate refuse service •City works with other Marin jurisdictions •Annual rate review is based on a specific methodology •Reviewed by independent 3rd party: R3 Consulting •MSS operations = “Resource Recovery” •State legislation and diversion goals included 4 Marin Sanitary Service Rate Review December 18, 2023 2024 Rate Review 5 Primary Impacts to rate adjustment •Inflation – CPI 5.7% (MSS only allowed 5%) •Recycling market downturn – 4-fold increase in costs •Commercial service rebounding, benefitting rates Additional Context •SB 1383 requiring a lot of engagement currently to bring customers into compliance Marin Sanitary Service Rate Review December 18, 2023 2024 Rate Review 6 Rate Adjustment Effective January 1, 2024 •+ $3.12 per month for most residential customers •Changes to commercial rate changes vary •Common commercial rate + $39.57 per month •Costs can often be reduced through good recycling and waste reduction •Low-income rates available for qualifying customers Marin Sanitary Service Rate Review December 18, 2023 2024 Rate Review 7 $53.31 2024 Rate Review 8 Marin Sanitary Service Rate Review December 18, 2023 Franchise Fee Study •Franchise fees may be subject to Prop 26 •Need to demonstrate reasonable charges for: •City costs (operations, staffing, etc.) •Use of City property •Vehicle impacts •R3 recently completed the study •Study demonstrates that City franchise fees are justified by City's costs Illegal Dumping Program 9 Marin Sanitary Service Rate Review December 18, 2023 Background •5-year program: 50% reduction by 2025 •2 Types of Dumper: Casual and Illicit •Address: Access, Education, & Enforcement •Build baseline data set •Proactive engagement •Equitable distribution of resources Marin Sanitary Service Rate Review December 18, 2023 2023 Update •More enforcement activities •Increase in participation in bulky item drop-off days •Data analysis and corrections •Mattress Recycling Council pilot •On-call pickup for multifamily policy options (R3) •Statewide Dumping Conference presentation •Additional “Hot Spot” campaigns Marin Sanitary Service Rate Review December 18, 2023 2023 Update Marin Sanitary Service Rate Review December 18, 2023 2021: 100 reports 2022: 77 reports 2023: 21 reports 2024 Work Plan (Access, Enforcement, Education) •Landscape scan & literature review •Portfolio of solutions development •Community review and feedback •Financial analysis •Camera Installations & Enforcement •Hot Spot Campaigns •Mini Grants for private property protection •Council study session in summertime Marin Sanitary Service Rate Review December 18, 2023 Summary & Public Hearing 14 Marin Sanitary Service Rate Review December 18, 2023 Summary & Public Hearing City Council Recommendation Adopt a resolution: •Approving maximum rates collected by Marin Sanitary Service for Refuse and Recyclable Material Collection and Disposal Services, to be effective January 1, 2024, and •Determining that the city’s franchise fees and refuse vehicle impact fees are justified by the city’s costs of providing solid waste services, reasonable charges for the use of city property for solid waste services, and the costs of addressing the impacts of solid waste refuse vehicles. Maximum rates allowable would be an increase of 6.22% over 2023 rates 15 Marin Sanitary Service Rate Review December 5, 2022 16