HomeMy WebLinkAboutCM Marin Sanitary Service Rates and Amendments for 2025____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: November 4, 2024
Disposition: Resolutions 15354 x 15355
Agenda Item No: 7.a
Meeting Date: November 4, 2024
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 AMENDMENTS FOR 2025
SUBJECT: RESOLUTIONS OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL:
1)APPROVING A FIFTH AMENDMENT OF THE AMENDMENT AND
RESTATEMENT OF THE COLLECTION AGREEMENT OF THE CITY OF
SAN RAFAEL WITH MARIN SANITARY SERVICE; 2) AUTHORIZING
MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE FOR
REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL
SERVICES TO BE EFFECTIVE JANUARY 1, 2025, AND ADOPTING A CITY
COST OF SOLID WASTE SERVICES FEE, REFUSE VEHICLE IMPACT
FEE, AND FRANCHISE FEE FOR THE USE OF CITY PROPERTY IN THE
PROVISION OF SOLID WASTE RELATED SERVICES.
RECOMMENDATION:
1.Adopt a resolution approving a fifth amendment to the amendment and restatement of the
collection agreement of the City of San Rafael with Marin Sanitary Service.
2.Adopt a resolution authorizing the maximum rates collected by Marin Sanitary Service for
Refuse and Recyclable Material Collection and Disposal Services to be effective January
1, 2025, and adopting a City Cost of Solid Waste Services Fee, Refuse Vehicle Impact
Fee, and Franchise Fee for the use of City property in the provision of solid waste related
services.
EXECUTIVE SUMMARY:
This report addresses three subjects: 1) amendments to the City’s Franchise Agreement with
Marin Sanitary Service, 2) a proposed new illegal dumping program, and 3) the rate adjustment
proposal for 2025 for Marin Sanitary Service to provide refuse, recycling, and organic materials
composting, hauling, and processing for customers in San Rafael. Amendments to the Franchise
agreement include changes to the City’s fee calculations in accordance with a fee study the City
conducted in 2023. Another change eliminates customer-owned carts to comply with Senate Bill
(SB) 1383, the State law regulating organics recycling. A third change codifies the proposed illegal
dumping program, including establishing bulky item collection at multifamily properties, a new
Waste Management Coordinator position, and other activities related to outreach and
enforcement.
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The proposed rate adjustment would allow Marin Sanitary Service to increase rates by up to a
maximum of 5.24% over 2024 levels for all customers. Customers include residential
homeowners, apartment owners, commercial property owners, and other businesses and tenants
that pay solid waste bills. The proposed rate adjustment is based upon an independent third-party
review of Marin Sanitary Service’s costs of providing the service by R3 Consulting Group, Inc.
(R3) and a contractually agreed-upon rate-setting methodology with Marin Sanitary Service. It
also includes new services and programs, including bulky item collection in multifamily dwellings,
the establishment of a Waste Management Coordinator, and other items for the proposed illegal
dumping program.
BACKGROUND:
Each year, the City Council holds a public hearing to authorize the maximum collection rates that
Marin Sanitary Service can charge to customers in the City of San Rafael. These rates are based
on a specific methodology in the City’s Franchise Agreement with Marin Sanitary Service. This
methodology has been in effect since 2018 when the City entered into the Third Amendment to
the Franchise Agreement.
Franchise Agreement, Franchise Fees, and Franchisors’ Group
Article XI of the California Constitution and the California Public Resources Code allows cities to
regulate refuse and recycling services. Marin Sanitary Service is the City’s 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 Marin Sanitary
Service, which outlines the services that must be provided by the company and the methodology
to set customer rates each year. The franchise agreement with Marin Sanitary Services includes
a Franchise Fee, which recovers the City’s costs of providing solid waste-related services,
including the negotiation and administration of the franchise agreement, as well as charges for
the reasonable value of the use of City property for the provision of solid waste services.
Additionally, the franchise agreement includes a Refuse Vehicle Impact Fee to recover the costs
of addressing the specific impacts of refuse vehicles on City streets and rights-of-way.
The City Council approved the Fourth Amendment to the current Franchise Agreement in
December 2021. The Franchise Agreement, including all amendments, contains a rate-setting
methodology based on the cost of service and primarily ties compensation to a common index:
the consumer price index (CPI) for water, sewer, and trash collection. It also includes a
mechanism to capture recycling revenues intended to help offset the cost of processing. This
methodology was developed to ensure accuracy and transparency while providing relatively
stable and predictable rates and continued verifiable high levels of service, which continues to be
the case.
All the jurisdictions in Marin that have similar franchise agreements with Marin Sanitary Service
work together to share information and reduce costs. These include the Cities of San Rafael and
Larkspur, the Towns of Ross, San Anselmo, and Fairfax, the Las Gallinas Valley Sanitary District,
and the County of Marin. These seven agencies meet throughout the year to oversee the
company’s operations and work together to conduct a single annual rate review analysis rather
than each jurisdiction having to conduct and pay for a separate review, saving thousands of
dollars annually.
New 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
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
disposal compost their organic materials. The most significant of these laws, SB 1383, requires
all residents and businesses to divert their organic waste. SB 1383 also requires local
governments to implement, monitor, and enforce participation in organic waste diversion
programs. The California Department of Resources Recycling and Recovery (CalRecycle) is
authorized to fine local governments that do not comply. The City of San Rafael signed an
agreement with Zero Waste Marin to provide support to achieve compliance with SB 1383 and
assess opportunities to create economies of scale working countywide to implement the law.
Nevertheless, the City’s requirements remain significant to comply with the law and provide
regular, ongoing compliance activities and reporting throughout the year.
Marin Sanitary Service Programs and Services
Marin Sanitary Service provides residential, commercial, and multifamily refuse services,
including garbage, recycling, and organics (food waste and green waste diversion) collection and
processing. The company also provides garbage and recycling pickup for City facilities, public
spaces, and all sidewalk receptacles downtown and throughout San Rafael.
Marin Sanitary Service is a key partner in achieving the City’s sustainability goals and the City’s
and County’s zero waste goals. The company conducts most of the outreach for the City for the
State’s Mandatory Commercial Recycling and Mandatory Composting laws (AB 341, AB 1826,
and SB 1383), which place requirements on businesses to recycle and divert organic waste and
require annual monitoring and notifications to non-compliant businesses. Marin Sanitary Service
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. Their services, including the “Where Does it Go, Joe” recycling lookup feature, can be
found on their website at MarinSanitaryService.com.
ANALYSIS:
A. Franchise Agreement Amendments
The City and Marin Sanitary Service have been working for several years, conducting research
and pilot programs to understand and prevent illegal dumping. Much of the City’s illegal dumping
activity centers around multifamily housing, and much of the material collected by the Public
Works Department are bulky items set out by apartment dwellers and managers who have few
options for disposal. After five years of study and pilots, staff are now proposing a comprehensive
program to reduce illegal dumping in San Rafael. Approval of this proposal necessitates
amendments to the Franchise Agreement to accommodate these new services. The proposed
changes can be found in Attachment 2: Fifth Amendment to the Amendment and Restatement of
Collection Agreement. Two other changes are being proposed to 1) accommodate SB 1383
requirements precluding customer-owned carts and 2) reflect changes to the franchise fees and
vehicle road impact fees to align with the Fee Study completed and approved by the City Council
in 2023.
Background: Illegal Dumping Program
In 2019, a cross-departmental Together San Rafael Team (“Team”) developed a 5-year plan to
reduce illegal dumping by 50% by 2025. The Team has been using a human-centered design
approach to understand community needs and perceptions, conduct learning pilots to identify root
causes and develop evidence-based solutions. Over time, the Team was expanded to include
Marin Sanitary Service, R3, Gigantic Idea Studios, the Mattress Recycling Council, Conservation
Corps North Bay, City volunteers, and community members through Voces del Canal, Mujeres
Empoderadas, and the Canal Community Resilience Council.
Part of this project’s early work was to better understand who is dumping, why, and what types of
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materials are being dumped the most. The Team has identified three major types of dumping with
the understanding that each type requires different solutions to achieve success:
1.Casual dumping is usually done by renters without access to free, on-site disposal and
resort to setting things out on the curb.
2.Illicit dumping is usually done by folks who know it is illegal, have large amounts of items
to dispose of, and seek out-of-the-way locations to dump.
3.Dumping related to homelessness is trash generated by unsheltered persons. It can also
refer to housed persons leaving items for use by unsheltered persons.
This project is focused on the first two. However, the Team collaborated with the City’s Health
and Safety Committee and other departments to assist with waste management related to
homelessness.
In 2024, the Team conducted the following pilots and activities:
•12 monthly bulky item drop-off days at Pickleweed Park targeting our neighborhoods
with the most prevalent illegal dumping in the Canal and near downtown.
•Additional “Hot Spot” campaigns focused on engagements, data analysis, mapping, and
surveillance camera installations, with enforcement in locations where dumping is
common.
•Mini-grants and commercial vouchers for businesses that experience dumping on their
property.
•Exploration of different types of enforcement solutions and staffing, including placement
of rotating surveillance cameras at hot spots.
•Continued tracking and validation of dumping data to measure pre- and post-intervention
results (including types of material, amounts, and locations) and testing of new apps for
tracking trash and dumping.
•Continued research into programs in other jurisdictions around the State to verify keys to
success.
•Cost Projections of recommended solutions. Outputs can be found in Attachment 2
•Community presentations and engagements to elicit feedback, including to the
Federation of San Rafael Neighborhoods, Voces del Canal, Zero Waste Marin, and the
East San Rafael Working Group of the San Rafael Chamber of Commerce.
•Presentations to department staff, including the City Attorney’s Office and the Streets
Division of Public Works, to vet the recommendations and remove confirmation bias.
•Presentations to the Statewide Illegal Dumping Taskforce and at the 4th Annual Illegal
Dumping Conference in Oakland to elicit feedback and stress test the recommended suite
of solutions.
Key Challenges and Insights:
The following are the major challenges identified during the pilot programs:
•Renters in multifamily dwellings have no easy, economical options for disposing of bulky
items, unlike owners of single-family homes, who get two curbside pickups per year. Early in
the pilot programs, community members and advocates pointed out that those with the most
need have the least access to services.
•Community norms are hard to change, and the norm in areas with a lot of multifamily units
is to “put items on the street, and the City picks it up.” There are currently few incentives for
someone to go through the effort to bring these materials to Marin Sanitary Service when cost,
transportation, and effort are minimized through simply doing what others in the neighborhood
are doing.
•There is limited staff capacity for enforcement. Currently, two different codes apply, one
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municipal and one penal, depending on the type and circumstances of dumping. The City’s
Code Enforcement Division and the Police Department have very limited capacity to enforce.
•There is limited staff capacity for outreach. Regular, ongoing outreach and education are
necessary to change behaviors, and there is no entity, dedicated staff person, or program
dedicated to this function.
•There is a lack of standardized cross-departmental coordination; the only coordination
with Marin Sanitary Service is through the City’s Sustainability Division. This leads to extra
work in all departments as complaints and work requests come through a variety of channels
(i.e., SeeClickFix, Emails to the City Council/City Manager, etc.). In addition, it leaves City
departments, service providers such as Conservation Corps North Bay and Zero Waste Marin,
and property owners siloed, and sometimes working at cross-purposes when more
collaboration is needed. Ideally, engagement and enforcement efforts are well coordinated
and tracked over time to ensure follow-through and that the right tool is used for the right
situation.
•Data is lacking and hard to get. The only reliable data is overall tonnage. It is very
challenging for the Department of Public Works to collect spatial and time-dependent data
due to the demands of the job of collecting dumped items in a timely fashion, often on busy
streets with limited visibility. New tools are needed to get data to show progress and identify
location-based causes and solutions.
Two of the most promising pilots were focused on equitable access to bulky item disposal by
tenants and apartment managers: bulky item drop-off events and on-call, on-site collection at
multifamily complexes. Currently, limited options exist for them to dispose of items such as
mattresses and dressers. Whereas residents in single-family homes can schedule a no-cost
pickup of bulky items curbside twice a year from Marin Sanitary Service, occupants of multifamily
dwellings must either contract with a junk hauler or take them to the dump and incur a fee to
dispose of them. However, research also revealed that simply providing the service was not
enough: other mechanisms needed to be in place to support and compel individuals to utilize the
service.
This and other research led to a critical finding throughout these last several years of investigation;
success only happens when all three of the following interventions occur:
1.Equitable access to disposal options,
2.Targeted and visible enforcement, and
3.Creative and continuous community engagement and outreach
Finally, the current system lacks a system or point of contact for dumping complaints, abatement,
and enforcement. Though illegal dumping comprises 25% of all See-Click-Fix service requests –
twice the number of the next highest request type – the City has no coordinated system to address
it. The community and City staff must interact with different departments in different situations.
For example, dumping on private property is a penal code violation and requires a police report.
Dumping on public right of way is a civil code violation enforced by Code Enforcement but sent to
Public Works for abatement. Resources are slim, and no budgetary or programmatic landing
place exists for this issue, unlike road repair or tree maintenance. Consequently, extra effort and
staff time are needed to identify and apply the correct interventions.
Final Recommendations: Illegal Dumping Program
Staff spent the last year analyzing the most ideal combination and level of programming to achieve
a systemic and sustainable response that results in a significant and measurable reduction in
illegal dumping. This analysis also looked at cost implications and potential funding sources for a
variety of scenarios while providing equitable services to all residents.
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The Together San Rafael Team has developed a final set of recommendations in conjunction with
our community partners, consultant team, and Marin Sanitary Service. This was reviewed by an
ad hoc subcommittee of the City Council comprised of Mayor Kate Colin and Councilmember
Maribeth Bushey on October 15, 2024. These recommendations continue many of the activities
piloted over the past several years with adjustments based on what was learned during
implementation. These recommendations make up the proposal included in the amendment to
the Franchise Agreement and are listed below.
•Provide curbside bulky item collection at multifamily properties, along with
alternative methods of collection to match circumstances, such as roll-off debris boxes or
vouchers for owners and managers who have different needs. This is the most significant
change and provides the baseline level of service necessary to prevent and reduce illegal
dumping.
•Create and hire a Waste Management Coordinator who serves as the single point of
contact and coordinator for illegal dumping, SB 1383 compliance, and other waste-related
activities. This coordinator would also serve as a code enforcement officer as well to
conduct enforcement in addition to outreach and engagement. This position is the other
necessary component to ensure all other elements of the proposal are carried out and
evolve as the programs are implemented and data comes in.
•Conduct robust multifamily outreach to change norms and behaviors over time. This
would include a variety of methods, such as designing and posting information in laundry
rooms, targeted mailings and social media posts, and site visits, as well as feedback loops
to continually improve and adjust using iterative design concepts.
•Conduct code enforcement for dumping in adjacent right of way at multifamily
complexes. Changing norms will require more than offering services when placing things
on the street is easy. Most of the time warnings suffice to nudge people to comply.
•Continue the monthly Bulky Item Drop-off Days at Pickleweed Park. The Canal
Neighborhood is one of the densest neighborhoods in the Bay Area outside of downtown
San Francisco, and these events have been very successful in helping alleviate the
tremendous need. Over time, the hope is to reduce or end these events as multifamily
curbside service becomes well-utilized.
•Test a data collection app and develop a robust data platform to fill the gaps in spatial
and time-dependent data. This will be necessary to show progress and develop
meaningful hot spot campaigns.
•Conduct annual Hot Spot Campaigns to further comprehensive location-based
interventions. Targeted campaigns allow for community-member engagement and
volunteerism, one-on-one engagement with apartment managers targeted enforcement
with temporary surveillance camera installations, and technical assistance for non-
standard circumstances and challenges.
•Continue and expand Crime Prevention Through Environmental Design (CPTED)
Mini-grants for businesses that experience dumping on their properties. CPTED
interventions such as lighting, fencing, surveillance cameras, and signage have been
shown to significantly reduce illegal activities on private property. This demonstrates our
commitment to local businesses impacted by dumping.
•Review and revise City codes and adjust fine amounts over time to provide more
effective enforcement tools. This may include best practices from other jurisdictions,
amendments to the City’s Master Fee Schedule, or adjustments to minimum service
levels, among other things.
Other Proposed Changes to the Franchise Agreement
When the Franchise Agreement is amended for specific purposes, the City and Marin Sanitary
Service seek to amend other portions to accommodate other priorities, much like the Department
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of Public Works coordinates with utilities when they do major road work. Last year, the City
conducted a Franchise Fee Study to align with new legal determinations resulting from a
California Supreme Court ruling on franchise fees. To better align with the court ruling, the City
Attorney’s Office recommends amending the franchise fee to comport with the study completed
last year and be calculated based on cost of service rather than a flat rate. This amendment is
included in Attachment 3, along with the City Council Resolution. This allows the City to set the
franchise fee at an amount equal to or less than $1,474,000, which is the reasonable market value
of the City property used for solid waste-related services, as determined by negotiations between
MSS and the City. Staff are recommending that the City set the franchise fee at $1,216,000
pursuant to the amount justified by the Franchise Fee Study.
Finally, SB 1383 requires that all carts and cans serviced by waste haulers be color-coded and
include signage that complies with the law and the three refuse and recycling streams: black for
landfill, green for organics, and blue and brown for dual-stream recycling. This change to the
agreement would prohibit customer-owned carts from complying with the law. Marin Sanitary
Service will conduct robust outreach to customers to make them aware of the change. The
company will provide extra organics and recycling carts to accommodate customers with a need
for extra service. This includes increasing the compost bin size options to the largest size: 96-
gallon carts. Attachment 5 details the plan for transitioning away from customer-owned carts,
including timeline and customer alternatives. This change has already happened in other
neighboring jurisdictions, including San Anselmo and Fairfax.
B. Proposed Maximum Rate Adjustment for 2024
History of Rate Adjustments
The five-year rate increase history for San Rafael averages 5.22%, with a range of 2.39% to
7.15%. Last year’s adjustment was 6.22% and included an Illegal Dumping Pilot, which staff
proposes to replace with permanent programs to address illegal dumping and other waste-related
issues of priority to the City Council and the community. 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 other government fees.
Rate Review and Adjustment
Attachment 3 is the independent third-party analysis and report of Marin Sanitary Service’s 2025
Rate Application conducted by R3 Consulting Group, Inc. San Rafael’s calculated rate adjustment
is 5.24%. As shown in the report, Collector Operations comprised the largest portion of the
increase to the base rate adjustment, which was calculated using the Consumer Price Index (CPI)
for Water, Sewer, and Trash Collection. Much of this increase is attributed to and closely tracks
current inflation levels.
A second significant impact on the rates this year is a one-time reduction in the fees to Zero Waste
Marin. Zero Waste Marin secured grant funding through an agreement with the City of San Rafael
and all other member agencies to apply as one entity and use those funds to accomplish work
typically conducted using hauler and landfill fees in 2025. Zero Waste Marin reduced fees in
proportion to the grant they received. Two other reductions to the rate adjustment are due to the
recyclable materials revenues being better than expected this year and a slight increase in
business revenue, resulting in a benefit to the rate calculation for 2025. The full list of adjustments
to the rates can be found in Table 1 in Attachment 4.
The full cost of the Illegal Dumping Program is included in the adjustment and makes up 2.32%
of the overall 5.24% adjustment for 2025. Marin Sanitary Service proposed a phased-in approach
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to the bulky item service for multifamily dwellings to allow for anticipated uptake over time and to
allow for increases in staffing and vehicles to accommodate the increase in program usage. With
this approach, the City will not overfund the program in year one. Similarly, outreach will be
phased in, starting with apartment owners and property managers of multi-family housing.
Therefore, overall program costs are spread over three years and would result in additional costs
in 2026 and 2027, as shown in the budget table at the end of Exhibit A in Attachment 2. This
would result in modest, less than 1% adjustments related to this program in both years, which will
be included in future rate applications.
Conclusion
R3 reviewed the application and all relevant documents and financial schedules with Marin
Sanitary Service, including the proposed Illegal Dumping Program. The full schedule of rate
adjustment line items can be found on page 1 of Attachment 3: Review of Marin Sanitary Service’s
2025 Rate Application. Staff reviewed the proposed rate adjustment and programs with an ad hoc
City Council subcommittee of Mayor Colin and Councilmember Bushey on October 15, 2024.
Staff recommends the City County authorize the maximum amount to be collected in 2025 with a
rate adjustment of 5.24%.
This rate adjustment would result in an overall increase of $2.79 per month for a residential 32-
gallon landfill cart, which is the most common cart size, for a total monthly fee of $56.10. For a
common commercial size, there would be an overall increase of $34.51 per month for a three
cubic yard bin, for a monthly total of $693.10. Recycling is included in all accounts, and customers
can reduce their regular landfill container size or pickup schedule, resulting in a lower rate of
recycling and reducing overall waste generation. Organics recycling is also provided, which is
included in the residential rates and is offered at approximately 60% of the cost of landfill service
for the commercial composting program.
R3 conducted a survey of solid waste rates throughout Marin as part of the rate review, which is
included on the last page of the report. It summarizes the survey data for residential 30-35 gallon
can weekly service with curbside recycling and organics pickup. However, note that the proposed
2025 rates are not yet available for other jurisdictions. This summary compares proposed San
Rafael 2025 base rates to other jurisdictions’ 2024 actual rates, which will likely also increase.
This comparison shows that San Rafael’s rates are slightly lower than most other Marin
jurisdictions. However, jurisdictions often provide different services and service levels, so these
are not necessarily equal comparisons. San Rafael’s rates have traditionally been comparable to
those in other Bay Area jurisdictions while often providing more services.
As in previous years, the authorized maximum rate adjustment shall be applied uniformly to all
residential, multifamily, and commercial service accounts. The actual maximum rates for all
services are provided in Attachment 2 as Exhibit C - Schedule of Rates.
COMMUNITY OUTREACH:
Notice of the public hearing was published twice in the Marin Independent Journal (Attachment
6) and emailed to all names of interested parties on file with the City Clerk and City Manager’s
Office, which includes residents, the San Rafael Chamber of Commerce, and the Marin Builders
Association, among others. Information on the maximum annual rate that MSS may collect has
been available at the City Clerk’s office during the ten 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, the Marin Builder’s Association, and other interested parties.
The illegal dumping program was developed with extensive community engagement with various
resident and business entities, as referenced on pages 3 and 4 of this report.
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FISCAL IMPACT:
If approved by the City Council, the maximum rates would be authorized for all customer types
and service options and satisfy the City’s contractual obligations to meet the MSS revenue
requirements to cover costs for San Rafael refuse and recycling services, including franchise
fees. The cost-of-service fee of $1,945,401 and the franchise fee of $1,216,000 would be
deposited into the City’s General Fund. All costs for solid waste-related services would be paid
for out of the General Fund. Refuse vehicle impact fees of $1,480,601 would continue to be
deposited into the City’s Gas Tax Fund, and all road maintenance expenses related to the impacts
of refuse vehicles, are paid for out of that same fund. Exhibit C to the resolution contains the
complete maximum rate request.
OPTIONS:
The City Council has the following options to consider on this matter:
1.Adopt the resolutions.
2.Adopt the resolutions with modifications.
3.Do not adopt the resolutions at this time and direct staff to come back with more
information.
RECOMMENDED ACTION:
1.Adopt a resolution approving a fifth amendment to the amendment and restatement of the
collection agreement of the City of San Rafael with Marin Sanitary Service.
2.Adopt a resolution authorizing the maximum rates collected by Marin Sanitary Service for
Refuse and Recyclable Material Collection and Disposal Services to be effective January
1, 2025, and adopting a City Cost of Solid Waste Services Fee, Refuse Vehicle Impact
Fee, and Franchise Fee for the use of City property in the provision of solid waste related
services.
ATTACHMENTS:
Attachment 1: Resolution Approving the Fifth Amendment to the Amendment and Restatement
of Franchise Agreement with Marin Sanitary Service
Attachment 2: Fifth Amendment to the Amendment and Restatement of Franchise Agreement
with Marin Sanitary Service, including Exhibit A: Description of Services
Attachment 3: Resolution Authorizing Rates with Franchise Fee Study (marked as Exhibit A),
Cost of Service, Vehicle Impact, and Franchise Fees (marked as Exhibit B), and
Rate Schedule (marked as Exhibit C)
Attachment 4: R3 Review of MSS Rate Application
Attachment 5: Customer Owned Can Memo
Attachment 6: Public Hearing Notice
RESOLUTION NO. 15353
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING AN 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 (“Restated 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 further amended this
agreement on December 6, 2021 with the Fourth Amendment to Amendment and Restatement of
Collection Agreement (the Restated Agreement and all amendments to the Restated Agreement
are collectively referred to herein as the “Franchise Agreement”); and
WHEREAS, the City of San Rafael and Marin Sanitary Service now desire changes to the
Franchise Agreement to update Marin Sanitary Service services to provide additional services for
bulky item collection and illegal dumping prevention as well as to update the City fees and franchise
fees; 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 November 4, 2024 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 City Manager is authorized to execute the Fifth Amendment to the Amendment and
Restatement of Collection Agreement of the City of San Rafael with Marin Sanitary
Service, attached to the staff report accompanying this resolution as Attachment 2.
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 4th day of November 2024, 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
1
RESOLUTION NO. 15355
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
AUTHORIZING MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE
FOR REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL
SERVICES TO BE EFFECTIVE JANUARY 1, 2025, AND ADOPTING A CITY COST
OF SOLID WASTE SERVICES FEE, REFUSE VEHICLE IMPACT FEE, AND
FRANCHISE FEE FOR THE USE OF CITY PROPERTY IN THE PROVISION OF
SOLID WASTE RELATED SERVICES.
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, a written third amendment
dated February 25, 2019, a written fourth amendment approved by the City Council on December
6, 2021, and a written fifth amendment approved by the City Council on November 4, 2024
(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 authorized from time to time by the City Council;
and
WHEREAS, Exhibit "C" of the Franchise Agreement provides rate schedules, to be
authorized by the City Council; and
WHEREAS, Marin Sanitary Service has submitted a rate application request for 2025 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 based
on a formula determined by Marin Sanitary Service’s actual cost of service and produced a report
concurring with Marin Sanitary Service’s rate and fee adjustments; and
WHEREAS, Section II(B)(6)(d) of Exhibit B of the Franchise Agreement authorizes the City
to establish and impose fees or charges for benefits conferred, privileges granted, or services or
products provided to the Company, or for the City’s reasonable regulatory costs, related to or
involving Marin Sanitary Services’ responsibilities under the Franchise Agreement; and
WHEREAS, Section II(B)(9) of Exhibit B of the Franchise Agreement authorizes the City to
set a franchise fee at any amount equal to or less than the reasonable market value of the City
property, as determined by the parties and set forth in the Franchise Agreement, used by Marin
Sanitary Services, for solid waste-related services; and
WHEREAS, R3 Consulting Group produced a Solid Waste Franchise Fee Study Report,
dated December 6, 2023 (“Franchise Fee Study” attached hereto as Exhibit A), which determined
2
the reasonable fees the City could impose, pursuant to Article XIII C, Section 1 of the California
Constitution, to recover its costs of providing specific benefits or privileges, services, and/or
products to Marin Sanitary Service for the provision of solid waste-related services, the fees the City
could charge to recover its reasonable regulatory costs related to solid waste services, and the
reasonable value of City property used by Marin Sanitary Service in its provision of solid waste-
related services; and
WHEREAS, The City Council accepted and adopted the Franchise Fee Study, attached
hereto as Exhibit A, and found and determined that the City’s franchise fees and Refuse Vehicle
Impact Fees complied with Article XIII C of the California Constitution and were justified by the City’s
costs of providing solid waste-related services, reasonable charges for the use of City property for
solid waste services, and the City’s costs of addressing the impacts of solid waste refuse vehicles,
when it adopted Resolution No. 15265 on December 18, 2023; and
WHEREAS, the City of San Rafael previously adopted a resolution amending the Master
Fee Schedule to increase the Refuse Vehicle Impact Fee in order to pay for the increased costs of
addressing the impacts of refuse vehicles on City streets; and
WHEREAS, the City desires to adopt a Cost of Service Fee, an updated Refuse Vehicle
Impact Fee, and an updated Franchise Fee, pursuant to the Franchise Agreement and in amounts
that are justified by the Franchise Fee Study; and
WHEREAS, the Cost of Service Fee does not exceed the City’s reasonable costs for
providing services or products, and/or the City’s reasonable regulatory costs, related to Marin
Sanitary Services’ provision of solid waste-related services; and
WHEREAS, the Refuse Vehicle Impact Fee does not exceed the City’s reasonable costs of
addressing the refuse vehicle impacts caused by Marin Sanitary Services in its provision of solid
waste-related services; and
WHEREAS, the Franchise Fee does not exceed the fair market value of the City property
used by Marin Sanitary Services in the provision of solid waste-related services, as negotiated by
the parties and demonstrated by the Franchise Fee Study; and
WHEREAS, the rates for solid waste service are set and imposed by Marin Sanitary Service
and the City’s Cost of Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee are set by the
Franchise Agreement and are the exclusive obligation of Marin Sanitary Service. By adopting this
resolution, the City does not intend to impose any rates, fees, or charges on solid waste customers.
However, to the extent that the adoption of this resolution results in the City’s imposition of any fees,
rates, or charges, on solid waste customers, for services or facilities in connection with a solid waste
3
system, including the franchise fees or the Refuse Vehicle Impact Fees, those charges are adopted
pursuant to California Health and Safety Code section 5471; and
WHEREAS, on November 4, 2024, 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:
Section 1. Pursuant to California Environmental Quality Act (CEQA) Guidelines Section
15378(b)(4), this action is not a project under CEQA because the City’s rate approval relates to the
funding mechanism of on-going solid waste collection services, which does not involve any
commitment to any specific project which may result in a potentially significant physical impact on
the environment.
Section 2. The City adopts the Cost of Service Fee, Refuse Vehicle Impact Fee, and Franchise
Fee set forth in Exhibit B, attached hereto and incorporated herein. The fees set forth in Exhibit B
shall be incorporated into the Master Fee Schedule and are intended to supersede and replace any
previously adopted fees.
Section 3. 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 5.24% over 2024 rates,
to be effective January 1, 2025. Said “Exhibit C” shall be incorporated as the revised Exhibit "C" to
the Franchise Agreement.
Section 4. To the extent the provisions of this resolution conflict with any prior resolutions, the
provisions of this resolution shall control.
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 4th of November 2024, by the following vote, to wit:
AYES: Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: None
4
LINDSAY LARA, City Clerk
1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com
December 6, 2023
Ms. Cristine Alilovich
City Manager
City of San Rafael
submitted via email: Cristine.Alilovich@cityofsanrafael.org
SUBJECT: Solid Waste Franchise Fee Study Report
Dear Ms. Alilovich,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached Report of Solid Waste Franchise Fee
Study (Study) to the City of San Rafael (City). This Report presents our analytical methodology, results
and findings, and recommendations regarding the solid waste Franchise Fee and Vehicle Impact Fee
paid by the City’s contracted solid waste collection service provider, Marin Sanitary Service (Contractor),
per the Refuse and Recyclable Material Collection and Disposal Services Agreement (Agreement)
between the City and the Contractor. The purpose of this Study was to comprehensively analyze and
calculate the following:
City’s Costs: The annual costs to the City for performing its management, administration,
regulatory compliance and enforcement, solid waste collection and clean-up, and other
obligations associated with the Contractor’s Agreement and the sanitation system.
Property Use Charges: The annual use charge to the Contractor for its special and lasting
access to use government property in the public right-of-way for placement of solid waste
containers and collection of the solid waste contents.
Pavement Impacts: The annualized costs for pavement repair, maintenance and
rehabilitation resulting from the unique impacts to City street pavement caused by the
Contractor’s solid waste collection vehicles during the course of providing sanitation service.
We then compared the calculated values for each component to the annual Franchise Fee and Vehicle
Impact Fee paid by the Contractor to the City per the Agreement. We found that the City’s current and
projected Franchise Fee revenues are less than the sum of the City’s Costs and government Property
Use Charges calculated in this Study. We also found that the City’s current Vehicle Impact Fee is less
than the costs for Pavement Impacts calculated in this Study. Based on these results, we conclude that
the City’s fee amounts are not more than necessary to cover the City’s reasonable costs in managing and
administering the Agreement and the sanitation system plus the reasonable value of the Contractor’s use
of the public right-of-way.
We appreciate the opportunity to be of service to the City. If you have any questions regarding this Report
or need additional information, please contact me.
Sincerely,
Garth Schultz | Principal
R3 Consulting Group, Inc.
510.292.0853 | gschultz@r3cgi.com
r) ~ CONSULTING GROUP, INC.
K___...-1 RESOURCES· RESPECT· RESPONSIBILITY
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TABLE OF CONTENTS
City of San Rafael | Solid Waste Franchise Fee Study Report toc - i
1. Executive Summary
page 1
2. Methodology and Calculations
page 4
3. Findings and Conclusions
page 19
4. Recommendations
page 20
1. Executive Summary
City of San Rafael | Solid Waste Franchise Fee Study Report 1 of 20
Background
The City’s Agreement with the Contractor is for the collection, processing, and disposal of solid
waste from covered waste generators in the City. The Agreement provides the Contractor with
the exclusive right to provide critical aspects of the City’s sanitation system including solid waste
collection and the other services and programs included in the Agreement. The Agreement
specifies that the Contractor will charge solid waste service subscribers, with the Contractor
billing and collecting revenues from subscribers and the City authorizing the maximum rates that
the Contractor may charge pursuant to the rate adjustment methodology included in the
Agreement.
Per the Agreement, the Contractor pays the City a Franchise Fee to cover the costs incurred by
the City in managing, administering, enforcing, and supplementing the services provided in the
Agreement, as well as the reasonable charge for the use of the public right-of-way for the
special and lasting access to use it for set-out and collection of solid waste containers. The
Agreement also provides that the Contractor pays the City a Vehicle Impact Fee to cover the
proportionate costs of the unique impacts to pavement caused by the Contractor’s solid waste
collection vehicles during the course of providing sanitation service.
Purpose
The purpose of this Study is to prove that the Franchise Fee and Vehicle Impact Fee paid by the
Contractor to the City are exempt from consideration as taxes per Article XIII C, Section 1(e) of
the California Constitution (“Proposition 26”) and are not higher than necessary to cover the
City’s reasonable costs plus the reasonable value of the Contractor’s use of the public right-of-
way. There are three primary exceptions to the Proposition 26 definition of tax that are relevant
to this Study:
Exception 1: “A charge imposed for a specific benefit conferred or privilege granted directly
to the payor that is not provided to those not charged, and which does not exceed the
reasonable costs to the local government of conferring the benefit or granting the privilege.”
Exception 2: “A charge imposed for a specific government service or product provided
directly to the payor that is not provided to those not charged, and which does not exceed the
reasonable costs to the local government of providing the service or product.”
Exception 4: “A charge imposed for entrance to or use of local government property, or the
purchase, rental, or lease of local government property.”
The Franchise Fee is a legal fee with two components. The first component includes the City’s
reasonable and proportionate costs (City’s Costs) and is a legal fee per Exception 2. The
second component includes the reasonable and proportionate and reasonable charges for the
Contractor’s use of the public right-of-way (Property Use Charges) and is a legal fee per
Exception 4. The Vehicle Impact Fee includes the City’s reasonable and proportionate costs
associated with pavement impacts (Pavement Impacts) and is a legal fee per Exception 1.
Methodology and Findings
To complete this Study, R3 reviewed and analyzed information provided by the City and the
Contractor pertaining to the City’s Costs, Property Use Charges, and impacts on pavement.
Using that information, we then calculated the reasonable and proportionate amounts necessary
to cover the City’s costs, including staffing and other costs, use of government property in the
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Executive Summary
City of San Rafael | Solid Waste Franchise Fee Study Report 2 of 20
public right-of-way, and pavement repair, maintenance, and rehabilitation costs caused by the
Contractor’s solid waste collection vehicles during the course of providing sanitation service. All
calculated amounts in this Study are in current Fiscal Year (FY) 2023-24 dollars and are
rounded to the nearest $1,000.
City’s Costs
The annual costs to the City for management, administration, regulatory compliance and
enforcement, solid waste collection and clean-up, and other obligations associated with the
Contractor’s Agreement and the sanitation system includes: staffing salary and benefits,
contracted services, capital and equipment depreciation, operations and maintenance, supplies,
and overhead for distributed costs including but not limited to property, utilities, insurance,
human resources, payroll administration, accounts payable and receivable, and other finance
functions. Staffing costs are calculated based on estimated time allocations (based on historical
experience) and other costs are calculated based on estimated share allocations associated
with the sanitation system, with distributed overhead applied to both.
The calculation results are $1,513,000 in staffing costs and $391,000 in other costs for
annual proportionate City’s Costs totaling $1,904,000.
Property Use Charges
The annual charge to the Contractor for use of government property in the public right-of-way is
calculated as a function of estimates for the number of solid waste accounts setting out solid
waste collection containers in the right-of-way, the set-out area used, the amount of time it is
used, and the reasonable market value for the per square foot use of the public right-of-way.
The calculation result for the use of the public right-of-way is a proportionate annual total
Property Use Charge of $1,173,000.
Pavement Impacts
The annualized costs for pavement repair, maintenance and rehabilitation is calculated based
on the proportionate impact to pavement from solid waste collection vehicles compared to other
sources of impacts. This calculation accounts for the City’s annual repair costs, five-year
projections for capital improvement costs, and five-year projections for growth in deferred
maintenance. The calculation also accounts for the high loading and slow speed impacts on
pavement associated with solid waste collection vehicles.
The calculation result for the proportionate Pavement Impacts caused by Contractor’s solid
waste collection vehicles during the course of providing sanitation service is an annualized
total repair, maintenance, and rehabilitation cost of $1,838,000.
Conclusions
Franchise Fee
The FY 2022-23 Franchise Fee paid Contractor to the City was $2,757,168 and the projection
for FY 2023-24 is $2,929,000. The sum of FY 2023-24 annual City’s Costs and amounts for
Property Use Charges calculated in this Study is $3,077,000 which is $148,000 (5%) higher
than the projected FY 2023-24 Franchise Fee payments.
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Executive Summary
City of San Rafael | Solid Waste Franchise Fee Study Report 3 of 20
The amount of the Franchise Fee is therefore not more than necessary to cover the City’s
reasonable costs incurred in managing and administering the Agreement and the sanitation
system plus the reasonable value of the Contractor’s use of the public right-of-way.
Vehicle Impact Fee
The Vehicle Impact Fee paid to the City annually is $1,480,600. The amount of Pavement
Impacts calculated in this Study is $1,868,000 which is $387,400 (26%) higher than the Vehicle
Impact Fee.
The amount of Vehicle Impact Fee is therefore not more than necessary to cover the City’s
reasonable costs incurred for repair, maintenance, and rehabilitation of pavement made
necessary by the impacts of Contractor’s solid waste collection vehicles used in providing
sanitation services in the City.
Reasonableness of Estimates and Assumptions
In performing calculations, it was necessary to estimate certain values for which information
could not be attained, and for which reasonable ranges exist. Where assumptions were
necessary for completing calculations, our objective was to apply assumptions on the lower end
of the reasonable range.
Had we used other higher assumptions, the results of this Study would have been higher
calculated Franchise Fee and Vehicle Impact Fee amounts. Therefore, we conclude that the
calculated fee amounts are not higher than necessary to cover the City’s reasonable costs plus
the reasonable value of the Contractor’s use of the public right-of-way.
Limitations
This Study relies on information provided by the City and the Contractor, which we have
reviewed and analyzed for reasonableness and accuracy but did not independently audit or
verify.
As stated above, it was necessary to estimate certain values for which information could not be
attained, and for which reasonable ranges are known to exist. Though, changes to estimates
and other underlying assumptions may materially change the calculations, we have elected to
apply estimates on the low end of reasonable ranges, thus minimizing the potential that
changes in calculations would result in different findings. We have reviewed all estimates and
assumptions with City staff and legal counsel and have mutual concurrence on applicability and
reasonableness of all such values in this Study.
Finally, the methodology employed by this Study calculates the reasonable values for the
Franchise Fee and Vehicle Impact Fee within the context of current laws, regulations, and court
rulings. Changes in the legal framework may require revisions to the methodology and findings
contained in this Study.
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2. Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 4 of 20
City’s Costs
Methodology
R3 reviewed and analyzed information provided by the City pertaining to the General Fund
costs incurred for management, administration, regulatory compliance and enforcement, solid
waste collection and clean-up, and other obligations associated with the Contractor’s
Agreement and the sanitation system. These costs include any may not be limited to:
Staffing costs, including salaries and benefits.
Contracted services.
Capital and equipment depreciation.
Capital and equipment operations and maintenance.
Supplies and materials.
Overhead for distributed costs such as property, utilities, insurance, human resources, payroll
administration, accounts payable and receivable, and other finance functions.
Using the total annual salary, benefit and other cost information provided by the City we
estimated the proportion of costs associated with management and administration of the
agreement and the sanitation system. We then calculated the proportionate totals and
categorized them by the functions listed in the sections below.
Variables, Estimates and Assumptions
Staffing Costs
Variables associated with salaries and benefits include the allocation of time that positions are
dedicated to management and administration of the Agreement and the sanitation system
(including time supervising others with primary responsibility for these duties), the amount by
which funding of salaries and benefits is paid by the General Fund, and the applicable amount
of General Fund overhead. The estimated time allocation by position category used in this
Study (and based on historical experience) is shown in Table 1, below, along with the
explanation for the allocation values.
Table 1 – Allocations of Staffing Time by Position
Positions Time
Allocation Explanation
City Manager, Assistant City Manager, City
Attorney, Assistant City Attorney, City Clerk,
Deputy City Clerk, Public Works Director, Deputy
Public Works Director, Management Analyst,
Operations and Maintenance Manager, Sr. Code
Enforcement Supervisor, Code Enforcement
Supervisor, Police Lieutenant, Police Sergeant
(2), Police Officer.
4.9%
Calculated allocation based on
the percentage of City’s Costs
plus Property Use Charges plus
Pavement Impacts divided by FY
2023-24 General Fund Budget.
Code Enforcement Official I and II. 10%
Estimated allocation based on
solid waste code enforcement
obligations.
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 5 of 20
Positions Time
Allocation Explanation
Sustainability Program Manager. 25%
Estimated allocation based on job
duties for management and
administration of the Agreement
and the sanitation system.
Public Works Maintenance Crews responsible for
Street Sweeping, Catch Basin Waste Removal,
and Illegal Dumping Clean-up.
80%
Estimated allocation based on
proportion of waste generation in
City.
R3 verified with City staff that the salaries and benefits included in this Study are paid by the
General Fund – any non-General Fund portions of positions included in Table 1 have been
excluded from the calculations. A General Fund overhead rate of 10.6% (provided by the City’s
Finance Director) is also applied to the total allocated costs.
Other Costs
Variables associated with the City’s other (i.e., non-salary and benefit) costs include the
proportionate allocation of those costs that are for management and administration of the
Agreement and the sanitation system, the amount by which these costs are paid by the General
Fund, and the applicable amount of General Fund overhead. The estimated time allocation by
cost category used in this Study is shown in Table 2, below, along with the explanation for the
allocation values.
Table 2 –Allocations of Other Costs by Category
Cost Category Cost
Allocation Explanation
Public Works Maintenance Crews responsible for
Street Sweeping, Catch Basin Waste Removal,
and Illegal Dumping Clean-up.
80%
Estimated allocation based on
proportion of waste generation in
City.
Consulting costs for direct management and
administration of Agreement and sanitation
system.
100%
All these costs are directly
associated with management and
administration of the Agreement
and the sanitation system.
R3 verified with City staff that the other costs included in this Study are paid by the General
Fund – any non-General Fund portions of these costs as included in Table 2 have been
excluded from the calculations. A General Fund overhead rate of 10.6% (provided by the City’s
Finance Director) is also applied to the total allocated costs.
Analysis
Direct Management and Administration
This category includes City staffing and consulting costs for direct management and
administration of the Agreement and the sanitation system. Staffing costs include allocated
costs for the City’s Public Works Director, Deputy Public Works Director, Sustainably Program
Manager, Management Analyst, and Operations and Maintenance Manager, for a calculated
$116,000 in annual staffing costs. Other costs include solid waste consulting services provided
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 6 of 20
by R3, for $7,000 in annualized consulting costs. The total calculated cost for this category is
$123,000.
Indirect Management and Administration
This category includes City staffing costs for indirect management and administration, including
supervision of those responsible for direct management and administration of the Agreement
and the sanitation system and associated responsibilities. Allocated costs for the City Manager,
Assistant City Manager, City Attorney, Assistant City Attorney, City Clerk, and Deputy City Clerk
are calculated for total annual costs in this category of $111,000.
CalRecycle and SB 1383 Compliance
This category would include City staff costs and other costs for various activities associated with
the City’s need to implement Senate Bill 1383 (Short-Lived Climate Pollutants Act) as well as
annual reporting to the State agency, CalRecycle. No costs for these activities are included in
this Study as these costs are not funded by the City’s General Fund.
Code Enforcement
This category includes City staffing costs for enforcing the solid waste provisions of the City’s
Municipal Code, which includes illegal solid waste accumulations, illegal dumping, littering,
improper waste collection setouts, nuisances, and the associated investigations, warnings,
notices of violation, and administration of penalties. Staffing costs include allocated costs for the
City’s Code Enforcement Supervisors and Officials and Police Officer, Sergeants, and
Lieutenant for calculated total annual costs in this category of $107,000.
Street Sweeping
When the Contractor or individual waste generators do not properly manage the collection of
solid waste, that mismanaged solid waste tends to end up in the public right-of-way and on
streets, where it must be removed by the City. Street sweeping captures solid waste that ends
up in public streets because of improper collection. Most if not all of the solid waste that ends up
in the streets is generated by properties that receive solid waste collection services from the
Contractor.
For the purposes of this Study, we do not assume that all mismanaged solid waste that ends up
on the City’s streets is generated by properties receiving solid waste services. Rather, because
there is the possibility that some solid waste collected by street sweeping operations was
originally generated by other sources, this Study estimates that only 80% of the solid waste
collected by street sweepers was generated by properties receiving solid waste services. This
assumption is consistent with other studies conducted by R3 (for the cities of Garden Grove and
San Bruno) wherein street sweeping activities were allocated between 77.4% and 90% to the
sanitation system.
This category includes City staffing, capital equipment, and operations and maintenance costs
for the City’s street sweeping operations. Allocated staffing costs for the Public Works
maintenance crews are calculated to be $229,000 annually. The allocated and annualized costs
for capital equipment and operations and maintenance costs are calculated to be $57,000
annually, for a calculated total in this category of $286,000.
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 7 of 20
Catch Basin Waste Removal
As with street sweeping, solid waste that is not properly managed by waste generators or the
Contractor, and not otherwise captured by street sweeping operations, accumulates in catch
basins and other trash capture devices in the City’s storm drain system. As with the street
sweeping category, we do not assume that all mismanaged solid waste that ends up in catch
basins or trash capture devices is generated by properties that receive solid waste services; the
80% estimate used for street sweeping costs is also applied here, and for the same reasons.
This category includes City staffing, capital equipment, and operations and maintenance costs
for the City’s catch basin waste removal operations. Allocated staffing costs for the Public
Works maintenance crews are calculated to be $844,000 annually. The allocated and
annualized costs for capital equipment and operations and maintenance costs are calculated to
be $136,000 annually, for a calculated total in this category of $980,000.
Illegal Dumping Clean-up
The City’s Public Works maintenance crews also clean up solid waste materials that are illegally
dumped throughout the City. As with street sweeping and catch basin waste removal, an 80%
waste generation allocation is applied.
This category includes City staffing costs for illegal dumping clean-up as well as costs for
outside contractors and service providers for clean-up of un-housed encampments. Allocated
staffing costs for the Public Works maintenance crews are calculated to be $106,000 annually.
The allocated costs for clean-up of un-housed encampments along with the allocated costs for
equipment maintenance and fuel are calculated to be $191,000 annually, and the for a
calculated total in this category of $297,000.
Public Waste Containers
This category would include City staff costs and other costs for collection of waste deposited in
public waste containers in the public right-of-way and other public locations in the City. No costs
for these activities were identified by the City and thus none of the costs associated with
category are included in this Study.
Waste Collection at City Events
This category would include City staff costs and other costs for collection of waste generated
and disposed of at City public events. No costs for these activities were identified by the City
and thus none of the costs associated with category are included in this Study.
Tree Trimming for Vehicle Access to Public Right-of-Way
This category would include City staff costs and other costs for trimming of the City’s street
trees to provide safe clearance for collection vehicles to collect solid waste from the public right-
of-way. No costs for these activities were identified by the City and thus none of the costs
associated with category are included in this Study.
Annual Total of City’s Costs
Table 3, following page, shows the total of the City’s Costs for management and administration
of the Agreement and the sanitation system as calculated in this Study, by category.
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 8 of 20
Table 3 – Annual City’s Costs by Category and in Total
Category Staffing Costs Other Costs Total
Direct Management
and Administration $116,000 $7,000 $123,000
Indirect Management
and Administration $111,000 N/A $111,000
Code Enforcement $107,000 N/A $107,000
Street Sweeping $229,000 $57,000 $286,000
Catch Basin Waste
Removal $844,000 $136,000 $980,000
Illegal Dumping Clean-
up $106,000 $191,000 $297,000
Total Annual City’s
Costs $1,513,000 $391,000 $1,904,000
Property Use Charges
Methodology
R3 reviewed and analyzed information provided by the City and the Contractor pertaining to
Property Use Charges for Contractor’s use of the public right-of-way for collection of solid waste
collection containers. When then calculated the annual Property Use Charges based on:
The setout area used for collection of solid waste containers (in square feet).
The amount of time that the area is used.
The reasonable market value for use of the public right-of-way (in dollars per square foot).
The number of solid waste subscribers setting out collection containers in the public right-of-
way.
Using these values, we calculated the reasonable market value for the Contractor’s use of
government property in the City.
Variables, Estimates and Assumptions
Setout Area
Standard residential solid waste collection setouts include three solid waste collection
containers, usually carts with wheels and lids, with one each for garbage, recycling, and
organics waste streams. The setout area needed for placement of these containers is inclusive
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 9 of 20
of the width of each container (typically two feet) as well as minimum required space between
the containers and other objects such as cars (minimum of one feet). The set-out area also
takes up available parking space and is thus assumed to extend six feet out from the curb. It
should be noted that the Contractor’s service guide shows two feet between containers and five
feet between containers and other objects, which requires a much larger area than the amounts
estimated in this Study. Thus, our estimated average setout area is likely low, and is therefore
conservative. Taken altogether, the area for residential setouts is calculated as three containers
that are each two feet wide, plus one foot between each container and other objects, for a total
area ten feet wide times six feet in depth. The result is 60 square feet of setout area used for
collection of solid waste containers in residential areas.
The amount of area used for commercial setouts (in this Study, use of the term commercial also
always includes multi-family) can vary widely, as there is no standard commercial subscription
size profile – each commercial solid waste subscriber can select from a range of container
sizes, with most of them being larger than the containers used in residential areas. Given this
complexity, this Study assumes that the average commercial setout area is twice that of the
residential setout area, for 120 square feet. This estimate is likely lower than the average setout
area needed in commercial areas and is therefore conservative.
Setout Time Usage
Standard residential solid waste collection is performed once weekly. Most residential
containers are set out the evening prior to collection and are removed from the public right-of-
way the following afternoon. Thus, for the purposes of this Study, we assume that collection
containers are in the public right-of-way for an average of 18 hours per day, one day per week,
which amounts to approximately 10.71% of the time (18 hours divided by 24 per day divided by
7 days per week).
Commercial solid waste subscription setout times can vary widely – just as there is no standard
commercial subscription size profile, likewise there is no standard collection frequency.
Commercial solid waste subscribers can select collection frequency between once and six times
per week, and with different frequencies for different waste streams. Given this complexity, this
Study assumes that the average commercial collection frequently is twice weekly, for 12.42% of
the time. As with the setout area, this estimate is likely lower than the average commercial
collection frequency and is therefore conservative.
Reasonable Market Value for Use of Public Right-of-Way
The City’s “Streatery” Program established a use charge for the use of the public-right-of way of
$3,600 annually. That amount is for the use of an area equivalent to one parking space, which the
typical parking space being 24 feet wide by 8 feet deep for an area of 192 square feet. Therefore,
the City’s established annual use charge for the use of the public right-of-way is $3,600 divided
by 192, for a resultant $18.75 per square foot.
Other cities in the Bay Area have also established use charges for use of the public right-of-way,
like the City’s program. Other Marin County communities including Fairfax, Larkspur, and San
Anselmo also have similar use charges, as do other communities including Healdsburg, Oakland,
Torrance, and Windsor. The minimum annual use charge per square foot in these communities is
$5.21 (Fairfax and Oakland) and the largest is $30.00 (Windsor). The average annual per square
foot use charge, including the City, is $15.67. To be conservative in our calculations, we use the
average annual value of $15.67 per square foot rather than the higher City-specific value of
$18.75.
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 10 of 20
Number of Subscriptions Setting Out Containers
The Contractor reports that there are 12,385 residential and 2,529 commercial solid waste
service subscribers in the City. However, not all subscribers set out their containers in the public
right-of-way for collection all the time. To account for non-setouts (either because subscribers
don’t have waste materials to set out or because they receive on-premises service) we assume
that only 90% of residential solid waste subscribers set out containers on a regular basis, for a
resulting total of 11,146 average residential setouts. It is also understood that most commercial
subscribers do not set out containers in the public right-of-way, and therefore we conservatively
assume that only 5% of commercial subscribers set out containers on a regular basis, for a
resulting total of 126 average commercial setouts.
Analysis and Total Annual Property Use Charges
Calculating the total annual Property Use Charges using the variables, estimates and
assumptions from the prior section is a function of multiplication, as shown in Table 4, below.
Table 4 – Calculation of Total Annual Property Use Charges
Variable Category Residential Commercial
Grand Total Annual
Property Use Charge
Setout Area 60 SF 120 SF
Setout Time Usage 10.71% 21.42%
Annual Use Charge $15.67 per SF $15.67 per SF
Number of Setouts 11,146 126
Total Annual Property
Use Charges $1,122,000 $51,000 $1,173,000
Pavement Impacts
Methodology
R3 reviewed and analyzed information provided by the City pertaining to Pavement Impacts from
the Contractors solid waste collection vehicles. We then calculated estimates of the proportionate
share of the average annual pavement repair, maintenance and rehabilitation costs associated
with solid waste collection vehicles based on the proportionate impact to pavement from solid
waste collection vehicle compared to other sources of impacts.
The calculation accounts for the City’s annual repair costs, five-year projections for capital
improvement costs, and five-year projections for annualized growth in deferred maintenance. The
calculation also accounts for the high loading and slow speed impacts on pavement associated
with solid waste collection vehicles. The calculation proportionately allocates the average annual
pavement management costs to solid waste vehicles based on:
The equivalent single-axle load and proportionate impacts from speed for those vehicles
compared to other vehicles.
The number of vehicle trips on City streets.
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 11 of 20
The proportion of vehicle trips that are made by trucks versus automobiles.1
Variables, Estimates and Assumptions
The weight, loading, slow speed, and frequent stops that characterize solid waste collection
vehicle operations impose unique and quantifiable impacts on the City’s street pavement. It is
important to understand that, while calculation of vehicle impacts to pavement can be precise
for individual vehicles, out of necessity we made certain assumptions about overall blended
pavement impacts associated with several categories of vehicle types for the purposes of this
Study. This is because we sought to calculate estimated impacts to all street pavement in the
City, covering all vehicle uses, and precise traffic information at that scale is not currently
available. Thus, we make informed assumptions regarding several variables necessary for this
Study.
For each of these variables, there is a range of potentially reasonable values that may be used.
We have selected values at the low end of the reasonable range to present findings that
conservatively calculate estimated values of the pavement impacts associated with the
Contractor’s solid waste collection vehicles during the course of providing sanitation service.
Assumptions used are described in the following subsections, which reference sources supporting
the summary provided here. We must note that changes in assumptions may result in material
changes in calculation results and findings.
Factors Impacting Pavement Conditions
Street pavement repair, maintenance and rehabilitation needs and their resulting costs are
affected by several factors including vehicle usage and trench cuts and subsurface activities
related to underground utilities. Environmental conditions such as light and water also contribute
to pavement repair, maintenance and rehabilitation needs in combination with the primary impacts
from vehicles, trench cuts, and subsurface activities. This Study only focuses on the impacts to
street pavement from vehicles, and the proportion of those impacts that are attributable to the
Contractor’s solid waste collection vehicles as they perform sanitation service.
City’s Costs for Pavement Repair, Maintenance and Rehabilitation
The City regularly projects its costs for repair, maintenance and rehabilitation of pavement
resulting from degradation due to use. These projections, and the basis for them, are documented
in Pavement Management Technical Assistance Program (P-TAP) reports which the City
commissions with engineering consultants.2 Per the City’s April 26, 2023, P-TAP report, the City’s
projected average annual pavement maintenance and rehabilitation costs from 2023 through
2027 for its entire street network, are approximately $4.2 million. Also, per the P-TAP, deferred
1 Our analysis accounts for the distribution of vehicles among the 13 Federal Highway Administration vehicle
classifications, which include passenger cars, SUVs/pick-ups, buses, and multiple truck and truck/trailer axle
combinations.
2 The City’s current P-TAP report dated April 26, 2023, was prepared by Adhara Systems, Inc., a consulting firm
with expertise in pavement engineering. Broadly speaking, a P-TAP is designed to provide objective information
and useful data for analysis so that managers can make more consistent, cost-effective, and defensible decisions
related to the preservation of a pavement network.
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 12 of 20
pavement maintenance on the City’s streets3 (which is the result of degrading pavement
conditions associated with the impacts of vehicles) is projected to increase by $15.3 million
between 2023 and 2027.4
Axle Loading
Our methodology for calculating the proportionate amount of pavement maintenance and
rehabilitation impacts for the Contractor’s vehicles is grounded in the fact that all vehicles,
including solid waste collection vehicles, degrade pavement during use. Measurement of that
impact – also known as “vehicle loading” – can be estimated, quantified, and expressed as an
Equivalent Single Axle Load (ESAL), which is a function of the vehicle’s weight and the distribution
of that weight over the vehicle’s axles. It is important to note that heavier vehicles have more
impacts on pavement and have a higher vehicle loading ESAL value. It is also important to note
that ESAL values are associated with vehicle loading only, and not the speed of the vehicle; it is
therefore assumed that relative ESAL values between vehicle types are based on vehicles
travelling at the same rate of speed.
For this analysis, R3 used the vehicle categories and average ESAL values shown in Table 5,
below. Table 5 explains and cites supporting information for how the ESAL for each vehicle type
was determined.
Table 5 – ESAL Value Assumptions by Vehicle Type
Vehicle Type ESAL
Value Source
Automobiles (Passenger Cars) 0.0008
AASHTO (American Association of State Highway and
Transportation Officials) Design Guide with ESALs by
Vehicle Type (Attachment 1)
Average of All Other Trucks 5 0.0171
Calculated Value Using AASHTO Design Guide with
ESALs by Vehicle Type (Attachment 1), Federal Highway
Administration ESALs by Vehicle Type (Attachment 2),
Comparative Traffic Counts (Attachment 3)
Solid Waste Vehicle (Garbage) 1.0000 Calculated Values by Type (Attachment 4) Using Example
Axle Weights (Attachment 5) and AASHTO Axle Load
Equivalency Factors (Attachment 6)
Solid Waste Vehicle (Organics) 1.0000
Solid Waste Vehicle (Recycling) 0.7500
Given the assumed ESAL values in Table 5, a solid waste vehicle collecting garbage has 1,250
times the impact of an automobile. We are aware of other research concluding that the impacts
3 Deferred maintenance is planned maintenance that gets delayed and backlogged because of a lack of funding.
Deferred maintenance costs remain on the books until they are funded and the work is completed and
recategorized in the City’s P-TAP.
4 Our analysis assumes funding based on the City’s budgeted pavement maintenance costs as presented in the P-
TAP under Scenario 2 “Maintaining PCI 62”.
5 “All other trucks” means all vehicles with high loading and impact on street pavement other than solid waste
vehicles.
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 13 of 20
of solid waste collection vehicles may be as high as 8,000-9,000 times the impact of passenger
cars; thus, our assumed ESAL of “1” for garbage collection vehicles is on the low end of the
reasonable range of ESALs for such vehicles.
Speed Impact
Impacts to flexible pavements (which are typical for residential streets) are also influenced by
vehicle speeds, with impacts being exponentially higher when a load carrying vehicle is moving
at a very slow speed.6 This is demonstrated in Chart 1, below.
Chart 1 – Exponential Relationship Between Speed and Pavement Impacts
Unlike typical traffic on residential streets, which tends to travel at or near the posted speed limit
(25 miles per hour [mph] in the City), solid waste vehicles slow and stop for collection in front of
each household, averaging approximately 4 mph to 8 mph.7 At these low speeds, and as shown
in Chart 1, vehicles have approximately 2.2 to 2.6 times the impact to the pavement than they
would travelling only at the 25 mph speed limit.
In this Study we conservatively assume that solid waste vehicles in the City may be travelling at
a faster 10 mph average speed, and we thus assume that the relative impact of speed is a factor
of 2, not the higher 2.2 to 2.6 factors corresponding with slower speeds as noted above. We apply
this speed factor of 2 as a multiplier to the ESAL loading for solid waste collection vehicles in our
analysis of impacts to residential streets only; the factor is not applied to the ESAL loading for
arterial and collector streets, as those streets are not typically comprised of flexible pavements,
solid waste collection vehicles stop less frequently on those streets (and thus have a higher
average speed).
Vehicle Passes Per Day
By estimating the number and type of vehicles (i.e., solid waste collection vehicles, automobiles,
and all other trucks) that travel on a street, and the average pavement impacts (measured in
6 Effect of truck speed on the response of flexible pavement systems to traffic loading; International Journal of
Pavement Engineering, July 2020; Michael R. S. Mshali and Wynand JvdM. Steyn.
7 Real-world activity, fuel use, and emissions of heavy-duty compressed natural gas refuse trucks; Science of the
Total Environment 761, 2021; Gurdas S. Sandhu, H. Christopher Frey, Shannon Bartelt-Hunt, Elizabeth Jones.
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Re
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a
t
i
v
e
I
m
p
a
c
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Average Speed (MPH)
T r ·······e. ..
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••••••••••••••
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•• •• ........................................ .
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 14 of 20
ESAL loading) associated with each vehicle type (described in the prior subsection), the total
impacts that the pavement will experience can be estimated in a mathematical calculation. Our
analysis makes informed assumptions about the number of vehicle passes (meaning trips down
streets) by type for the two major types of streets identified by the City in its P-TAP. Those two
types of streets are: high traffic volume streets (namely arterial and collector streets) and low
traffic volume streets (residential streets). Specific data for the City relating to the number of
vehicle passes per day and the proportion of those passes that are comprised of trucks was not
available for this Study.
For the low traffic residential streets, we used an estimate of 1,500 vehicle passes per day, which
is larger than the 750 passes per day previously estimated by the City in the 2020 Vehicle Impact
Fee Study. Using the higher figure of 1,500 passes per day reduces the proportionate impact from
the Contractor’s solid waste collection vehicles and is thus more conservative than the calculation
using 750 passes per day. We also estimated that 5% of residential traffic trips were made by
trucks, and that value is higher than the 2% used in the prior study. While the prior 2% figure was
validated by City Engineer, for the purposes of this study we use the higher 5% because it is more
conversative than the 2% figure in that it also reduces the proportionate impacts from the
Contractor’s solid waste collection vehicles.
For arterial and collector streets, we used an estimate of 15,000 passes per day, which is the
same value used in the prior study. For the percentage of those trips that are trucks, we used a
calculated value based on comparative traffic counts from the City of Torrance in 2023
(Attachment 3) and which is the same dataset that we used to estimate the average ESAL for “All
other trucks” in Table 5. Attachment 3 calculates the average daily traffic counts for all vehicles
on commercial streets in that city, with 87.7% of the average daily traffic count being comprised
of passenger cars and motorcycles and the remaining 12.3% being comprised of trucks. For the
purposes of this Study, we have assumed an even higher percentage of arterial and collector
street traffic being trucks, at 15% of the average daily traffic. As with the prior assumptions, this
value is conservative in that it returns a low proportionate value for the impacts to streets from the
Contractor’s solid waste vehicles. Table 6, below, is a summary of the average daily vehicles
passes and the percentage that are trucks assumptions used in this Study.
Table 6 – Vehicle Passes Per Day by Street Type
Street Type Vehicle Passes Per Day Percentage of Vehicle
Passes That Are Trucks
Residential 1,500 5%
Arterial and Collector 15,000 15%
Vehicle Passes By Vehicle Type
The variables described in the prior subsection provide the overall number of vehicle passes per
day, and the percentage of those passes that are trucks. To isolate the vehicle loading impacts
to pavement associated with solid waste collection vehicles we need to determine the number of
passes that those vehicles make per day. This is a relatively simple calculation based on the
weekly schedule of collections for solid waste collection services. For the low traffic residential
streets, solid waste collection operations are on a weekly schedule. Since weekly collections are
on both sides of the street, each street is driven twice (once in each direction) by a minimum of
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 15 of 20
one of each type of solid waste collection vehicle. For the purposes of this Study, we assume
that each solid waste collection and vehicle makes two passes per week, or 0.286 passes per
day on residential streets. This value does not account for the fact that some streets are driven
on during non-route days so that collection vehicles can access streets on a given route,
meaning that the actual average passes per week in the City must be higher than stated above.
Using the lower passes per week is conservative in that it returns a lower result for the street
impacts from the Contractor’s solid waste vehicles. For the high traffic arterial and collector
streets, which are primarily commercial, the schedule for solid waste collection can vary. Solid
waste collection services may be provided up to five or six times a week for larger waste
generators and may be as low as weekly for smaller generators. Additionally, because solid
waste generators in commercial areas are not all on the same collection schedules as
residential accounts are, vehicles in commercial areas pass over the same streets multiple
times to serve accounts with different collection schedules.
For the purposes of this Study, for arterial and collector streets, we assume that solid waste
collection vehicles collecting garbage for landfill disposal pass over each street two times per
day (once in each direction), while solid waste collection vehicles for organics and recycling
pass over each street once per day (one half in each direction). Total passes for organics and
recycling collection vehicles are less because it is generally the case that service levels for
garbage are at least twice those of the corresponding organics or recycling service level. As
with the number of passes on residential streets, this value does not account for the fact that
some streets are driven on during non-route days so that collection vehicles can access streets
on a given route, meaning that the actual average passes per week in the City must be higher
than stated above. Using the lower passes per week is conservative in that it returns a lower
result for the pavement impacts from the Contractor’s solid waste vehicles.
The number of passes per day for the remaining vehicle types – automobiles and other trucks –
are simply calculated as a function of the total number of daily passes, the total number of those
that are trucks (based on the percentages discussed in the prior section), and the number of
passes for solid waste collection vehicles. For example, for the City’s residential streets, given
the assumed 1,500 passes per day and 5% (75) of those being trucks, there are 1,425
automobile passes per day (1,500 x 95%). With three types of solid waste collection vehicles
each passing 0.286 times per day (as described above), the total passes per day are 0.857 (3 x
0.286). The number of passes for all other trucks is 74.143 (150 minus 0.857). Table 7, below,
provides a summary of vehicle passes per day by street type.
Table 7 – Vehicle Passes Per Day by Vehicle Type and Street Type
Vehicle Type Residential Streets Arterial and Collector Streets
Automobiles (Passenger Cars) 1,425.000 12,750.000
Average of All Other Trucks 74.143 2,247.143
Solid Waste Vehicle (Garbage) 0.286 1.429
Solid Waste Vehicle (Organics) 0.286 0.714
Solid Waste Vehicle (Recycling) 0.286 0.714
Total 1,500 15,000
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 16 of 20
Percentage of Streets by Type
A final variable that needs to be addressed in the percentage of streets by type. This information
is included in the City’s P-TAP, including the relative area by street type, as shown in Table 8,
below.
Table 8 – Percentage of Streets by Type
Street Type Area (Square Yards) Percentage of Area
Residential 1,740,000 58.5%
Arterial 666,700 22.4%
Collector 568,000 19.1%
Total 2,974,700 100%
Analysis
Percentage Impact for Solid Waste and Street Sweeping Vehicles by Street Type
With the variables for ESAL by vehicle type, the multiplication factor for the relative impacts of
speed for solid waste collection vehicles on residential streets, and the number of passes by
vehicle type established, we then calculate the relative percentage impact associated with each
vehicle type. This is calculated as a function of ESAL multiplied by speed factor (residential streets
only) multiplied by the number of weekly passes, multiplied by ESAL, with the product being the
total vehicle loading pavement impact by vehicle type per week. Totaling the weekly total vehicle
loading by vehicle types yields the total estimated loading experienced by each street type
(residential vs. arterial and collector). From there, we calculate the percentage contribution to total
vehicle loading for solid waste collection vehicles, which is the total weekly ESAL loading
associated with solid waste collection vehicles divided by the total ESAL loading for the street.
Table 9, below, and Table 10, on the following page, show these calculations and the results.
Table 9 – Calculation of Solid Waste Pavement Impacts – Residential Streets
A B C D E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table
5)
Relative
Impact
from
Speed
Passes /
Day /
Vehicle
Type
(Per Table
7)
Passes /
Week /
Vehicle
Type
(C x 7)
Total
Weekly
ESAL
Loading
(A x B x D)
Percent of
Total
ESAL
Loading
(E / 27.85)
Automobiles 0.0008 1x 1,425.000 9,975 7.98 28.65%
All Other Trucks 0.0171 1x 74.143 519 8.87 31.86%
Garbage Vehicles 1.0000 2x 0.286 2 4.00 14.36%
Organic Material Vehicles 1.0000 2x 0.286 2 4.00 14.36%
Recycling Vehicles 0.7500 2x 0.286 2 3.00 10.77%
Total 1,500 10,500 27.85 100%
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 17 of 20
As shown in Table 9, for the City’s residential streets we calculated the percentage impacts for
solid waste vehicles to be 39.49% of total impacts to residential street pavement (14.36% times
2 plus 10.77%)
Table 10 – Calculation of Solid Waste Vehicle Impacts – Arterial and Collector Streets
A B C E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table 5)
Passes /
Day /
Vehicle Type
(Per Table 7)
Passes /
Week /
Vehicle Type
(B x 7)
Total Weekly
ESAL
Loading
(A x C)
Percent of
Total ESAL
Loading
(E / 359.13)
Automobiles 0.0008 12,750.000 89,250 71.40 19.88%
All Other Trucks 0.0171 2,247.143 15,730 268.98 74.90%
Garbage Vehicles 1.0000 1.429 10 10.00 2.78%
Organic Material Vehicles 1.0000 0.714 5 5.00 1.39%
Recycling Vehicles 0.7500 0.714 5 3.75 1.04%
Total 15,000 105,000 359.13 100%
For the City’s arterial and collector streets, Table 10 calculates the percentage impact from solid
waste vehicles to be 5.22% of the total impacts (2.78% plus 1.39% plus 1.04%).
Average Annual Pavement Expenses
Per the P-TAP report, the City is projected to spend $4.2 million per year on pavement repair,
maintenance, and rehabilitation. Additionally, the City spends approximately $187,000 annually
for spot repair work not included in the P-TAP. Therefore, the total annual estimated City costs
for pavement repair are $4,387,000.
Average Annualized Deferred Maintenance
In addition to contributing to annual pavement maintenance and rehabilitation costs, solid waste
vehicles also contribute to deferred maintenance. The P-TAP report projects that deferred
maintenance will increase by $15.3 million from 2023 to 2027, which is $3,830,500 annually.
Reduction for Pavement Subsurface Impacts
Expenditures for pavement maintenance repair impacts to pavement caused by vehicles, trench
cutting and subsurface activities, as well as the environmental impacts associated with those
same sources of primary impacts. We roughly estimate the impacts of trench cutting and
subsurface activities on the City’s streets to be 10% of all pavement repair, maintenance, and
rehabilitation costs. This leaves 90% of the average annual pavement management costs and
average annualized deferred maintenance needs associated with vehicle impacts. This is
demonstrated in Table 11, on the following page.
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 18 of 20
Table 11 – Average Annual Pavement Impacts from Vehicles
Category Amount of Impacts
from All Sources
Reduction for
Subsurface Activities
Amount of Pavement
Impacts from
Vehicles
Average Annual
Pavement Expenses $4,387,000 -10% $3,948,000
Average Annualized
Deferred Maintenance $3,830,000 -10% $3,447,000
Total $8,217,000 -10% $7,395,000
Table 12 shows the breakdown of the average annual pavement impacts from all vehicles by
street type, using the total from Table 11 above.
Table 12 –Total Pavement Impacts from Vehicles by Street Type
Variable Residential Arterial and Collector Total
Percentage of Streets
by Type (From Table 8) 58.5% 41.5% 100%
Annual Pavement
Impacts from
Vehicles
$4,326,000 $3,069,000 $7,395,000
Total Annual Pavement Impacts
Calculating the total annual Pavement Impacts using the variables, estimates and assumptions
from the prior section is a function of multiplication, as shown in Table 13, below.
Table 13 – Calculation of Total Pavement Impacts from Contractor’s Vehicles
Variables Residential Arterial and Collector
Grand Total
Annual Pavement
Impacts from Vehicles
(From Table 12)
$4,326,000 $3,069,000
Percentage Impacts
from Contractor’s
Vehicles (From Tables 9
and 10)
39.49% 5.22%
Total $1,708,000 $160,000 $1,868,000
3. Findings and Conclusions
City of San Rafael | Solid Waste Franchise Fee Study Report 19 of 20
Franchise Fee
The FY 2022-23 Franchise Fee paid to the City was $2,757,168 and the projection for FY
2023-24 is $2,929,000.
R3 calculated reasonable estimates of the City’s Costs and Property Use Charges based on
actual and estimated cost information provided by the City, and with reasonable and
conversative assumptions for estimated values.
The sum of FY 2023-24 annual City’s Costs ($1,904,000) and Property Use Charges
($1,173,000) amounts calculated in this Study is $3,077,000.
The calculated amounts bear a reasonable relationship to the Contractor’s burdens on the
City resulting from the management and administration of the Agreement and the sanitation
system, and the reasonable value of the Contractor’s use of the public right-of-way. The
City’s Costs have been reviewed and confirmed by City staff as being representative of the
actual time and costs incurred for these activities. Amounts of Property Use Charges are
proportionately allocated to the Contractor with due recognition of the realities of the
Contractor’s operations.
The amounts calculated in this Study are $148,000 (5%) higher than the projected FY 2023-
24 Franchise Fee payments. It is highly unlikely, given the justification provided herein, that
FY 2023-24 Franchise Fee payments will exceed the amounts calculated in this Study.
The projected FY 2023-24 Franchise Fee is less than would be justified by the calculations in
this Study.
The Franchise Fee therefore is not more than necessary to cover the City’s reasonable costs
incurred in managing and administering the Agreement and the sanitation system plus the
reasonable value of the Contractor’s use of the public right-of-way.
Vehicle Impact Fee
The Vehicle Impact Fee paid to the City annually is $1,480,600.
R3 calculated reasonable estimates of the Pavement Impacts from Contractor’s solid waste
collection vehicles based on quantifiable impacts from such vehicles.
The amount of Pavement Impacts calculated in this Study is $1,868,000.
The amount calculated Pavement Impacts bear a reasonable relationship to the Contractor’s
burdens on the City resulting from the pavement impacts caused by Contractor’s solid waste
collection vehicles. Calculations of Pavement Impacts have been proportionately allocated to
the Contractor with due recognition of the impacts from loading, speed, number of trips, and
other causes of pavement repair, maintenance, and rehabilitation needs.
The amounts calculated in this Study are $387,400 (26%) higher than the Vehicle Impact
Fee.
The Vehicle Impact Fee is less than would be justified by the calculations in this Study.
The Vehicle Impact Fee there is not more than necessary to cover the City’s reasonable
costs incurred for repair, maintenance, and rehabilitation of pavement.
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4. Recommendations
City of San Rafael | Solid Waste Franchise Fee Study Report 20 of 20
Annual Adjustments
All values calculated in this Study are in current FY 2023-24 dollars. Given that the City’s Costs,
Property Use Charges, and Pavement Impacts will all tend to change over time in response to
changing staffing, benefits, and other costs, it would be appropriate for the City to implement an
annual adjustment to the Franchise Fee and Vehicle Impact Fee.
We recommend that the City consider including an automatic annual adjustment that would
change the fees in proportion to the percentage change in the Consumer Price Index (CPI).
We recommend the CPI for All Urban Consumers (CPI-U) for the San Francisco Bay Area
(U.S. Bureau of Labor Statistics series ID: CUURS49BSA0).
Sources and Uses Accounting
Currently, the City’s Costs and Property Use Charges are not tied to Franchise Fee revenues in
the City’s accounting system. The City could implement project code accounting and/or
enterprise fund accounting for the Franchise Fee to better track source revenues and their uses.
In either case, allocated and/or direct staffing and other costs could be tied to source revenues,
while the Property Use Charges could be transferred out for general use.
We recommend that the City consider implementing sources and uses accounting practices
for Franchise Fee revenues, City’s Costs, and Property Use Charges.8
Periodic Recalculation
Over time, the City’s Costs associated with the Agreement and the sanitation system, the value
of Property Use Charges for use of the public right-of-way, and the annualized costs associated
with Pavement Impacts from the Contractor’s solid waste collection vehicles may change in
ways that vary from the annual change in the CPI. Additionally, changes in City policies,
programs, procedures, organization, geopolitical boundaries, laws, regulations, court rulings,
and/or other factors may also trigger a need for recalculating fees.
We recommend that the City consider updating this Study periodically (e.g., every five
years) or more frequently if needed to recalculate fees in response to other factors.
8 The Vehicle Impact Fee is recorded as revenue in the Gas Tax fund, from which pavement repair, maintenance and
rehabilitation costs are paid.
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Attachment 1 City of San Rafael Franchise Fee Study 12-4-2023
Appendix D D-25
Tobie D.21. Worksheet for Calculating 18-kip Equivalent Single Axle Load (ESAL) Applications
Location ____ E_xam_.;;..p_le_l ___ _ Analysis Period = __ 2_0 __ Years
911 Assumed SN or D = ____ _
Current Growth Design E.S.A.L. pesign
Traffic Factors Traffic Factor E.S.A.L.
Vehicle Types (A) (B) (C) (D) (E)
2%
Passenger Cars 5,925 24.30 52,551,787 .0008 42,041
Buses 35 24.30 310,433 .6806 211,280
Panel and Pickup Trucks 1,135 24.30 10,066,882 .0122 122 ,816
Other 2-Axle/4-Tire Trucks 3 24.30 26,609 .0052 138
2-Axle/6-Tire Trucks 372 24.30 3,299,454 .1890 623,597
3 or More Axle Trucks 34 24.30 301,563 .1303 39,294
All Single Unit Trucks
3 Axle Tractor Semi -Trailers 19 24.30 168,521 .8646 145,703
4 Axle Tractor Semi-Trailers 49 24.30 434,606 .6560 285,101
5 + Axle Tractor Semi-Trailers 1,880 24.30 16,674,660 2.3719 39,550,626
All Tractor Semi-Trailers
5 Axle Double Trailers 103 24.30 913,559 2.3187 2,118,268
6 + Axle Double Trailers 0 24.30
All Double Trailer Combos
3 Axle Truck-Trailers 208 24.30 1,844,856 .0152 28,042
4 Axle Truck-Trailers 305 24.30 2,705 ,198 .0152 41,119
5 + Axle Truck-Trailers 125 24.30 1,108,688 .5317 589,489
All Truck-Trailer Combos
All Vehicles 10,193 90,406,816 Design 43,772,314 E.S.A.L.
Attachment 2 City of San Rafael Franchise Fee Study 12-4-2023
FHWA Truck Classes
Class Type I EALF
1 Motorcycles negligible
2 Passenger Cars negligible
3 Other Two-Axle , Four-Tire Single Unit Vehicles negligible
4 Buses 0.57
5 Two-Axle, Six-Tire, Single Unit Trucks 0 .26
6 Three-Axle Single Unit Trucks 0.42
7 Four or More Axle Single Unit Trucks 0 .42
8 Four or Less Axle Single Trailer Trucks 0.30
9 Five-Axle Single Trailer Trucks 1.20
10 Six or More Axle Single Trailer Trucks 0.93
11 Five or Less Axle Multi-Trailer Trucks 0.82
12 Six-Axle Multi-Trailer Trucks 1.06
13 Seven or More Axle Multi-Trailer Trucks 1.39
Attachment 2 City of San Rafael Franchise Fee Study 12-4-2023
FHW A s 13 ehicle Category Clas ification
Motorcycles Four or more
1----------------------ax le, single unit
Class l
Passenger cars
Class 3
Four tire,
single unit
Class 4
Buses
Class 5
Two axle, six
tire, sin gle unit
Class 6
Three axle,
single unit
t--------------
1-----------
t--------------
-
Class 8
Four or le ss axle ,
s in g I e trailer
Class 9
5-Axle tractor
s em it ra ii er
Class 10
Six or more axle ,
s in g I e trailer
Class 11
Five or less axle ,
mu lti trailer
Class 11
1-----------Six axle , multi-
trailer
Class 13
Seven or more
axle. multi-trailer
ource : Federal Highway Admini tration (TMG 2013).
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ABCDEFGHIJKLMNOPQRSTU
Street Name From Location To Location Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Class 7 Class 8 Class 9 Class 10 Class 11 Class 12 Class 13
Torrance Blvd Victor St Anza Ave 29796 04/2018 1262 50% 79 26526 2054 152 866 67 5 21 260000 29796
0% 89% 7% 1% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Torrance Blvd Madrona Ave Maple Ave 32572 04/2018 1486 51% 45 28713 2362 159 1166 61 16 26 240000 32572
0% 88% 7% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Torrance Blvd Arlington Ave Cabrillo Ave 29267 05/2018 1203 50% 62 26131 1574 111 625 505 49 53 48 5 32 40 32 29267
0% 89% 5% 0% 2% 2% 0% 0% 0% 0% 0% 0% 0%100%
Crenshaw Blvd Redondo Beach BlvArtesia Blvd 32648 04/2018 1318 50% 61 29104 2563 110 726 37 5 14 280000 32648
0% 89% 8% 0% 2% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Artesia Blvd 182nd St 33944 04/2018 1475 54% 62 29796 2588 122 1258 69 7 18 240000 33944
0% 88% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd 182nd St 190th St 54327 04/2018 2186 52% 55 47269 4235 113 2415 47 5 99 890000 54327
0% 87% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd 190th St Del Amo Blvd 49516 04/2018 1931 51% 49 42896 3828 108 2162 128 0 123 2220000 49516
0% 87% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Del Amo Blvd Dominguez St 47718 04/2018 2074 53% 54 41416 3749 125 2165 36 0 62 1110000 47718
0% 87% 8% 0% 5% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Torrance Blvd El Dorado St 45215 04/2018 1835 52% 59 39890 3489 87 1465 27 4 102 920000 45215
0% 88% 8% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Carson St Sepulveda Blvd 44936 04/2018 1770 51% 61 38281 4119 97 2043 80 8 130 1170000 44936
0% 85% 9% 0% 5% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Sepulveda Blvd 235th St 50785 04/2018 2004 51% 46 43831 4455 120 1949 65 1 118 2000000 50785
0% 86% 9% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Lomita Blvd Skypark Dr 41290 04/2018 1846 55% 62 35390 3650 122 1761 51 7 130 1170000 41290
0% 86% 9% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Pacific Coast Hwy South City Limit 33219 04/2018 1546 55% 91 28665 3297 56 1049 40 0 6 150000 33219
0% 86% 10% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Del Amo Blvd Victor St Anza Ave 21330 04/2018 1040 56% 80 18735 1880 47 545 20 8 1140000 21330
0% 88% 9% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Del Amo Blvd Maple Ave Crenshaw Blvd 28001 04/2018 1336 57% 48 23933 2202 176 1386 73 22 100 51 10 0 0 0 28001
0% 85% 8% 1% 5% 0% 0% 0% 0% 0% 0% 0% 0%100%
Artesia Blvd Hawthorne Blvd Prairie Ave 34571 05/2018 1270 50% 122 30839 1595 233 711 635 158 22 111 25 14 50 56 34571
0% 89% 5% 1% 2% 2% 0% 0% 0% 0% 0% 0% 0%100%
Artesia Blvd Ainsworth Ave Yukon Ave 32714 06/2018 1592 66% 149 27864 2889 79 1836 160920000 32844
0% 85% 9% 0% 6% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Artesia Blvd Crenshaw Blvd Van Ness Ave 32897 05/2018 1366 59% 535 28709 1571 110 903 601 192 35 103 22 28 104 74 32987
2% 87% 5% 0% 3% 2% 1% 0% 0% 0% 0% 0% 0%100%
Redondo Beach BlvHawthorne Blvd Prairie Ave 24076 06/2018 8963 56% 20 21007 1944 111 950 217880000 24076
0% 87% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Redondo Beach BlvPrairie Ave Yukon Ave 32187 05/2018 1334 54% 33 29927 1279 120 402 261 22 47 22 2 32 23 17 32187
0% 93% 4% 0% 1% 1% 0% 0% 0% 0% 0% 0% 0%100%
Redondo Beach BlvCrenshaw Blvd Van Ness Ave 31183 06/2018 1485 59% 48 27555 2483 111 864 36 3 15 680000 31183
0% 88% 8% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Hawthorne Blvd Pacific Coast Hwy South City Limit 35335 06/2018 1634 61% 45 30266 2981 116 1201 120 26 164 311 2 103 0 0 35335
0% 86% 8% 0% 3% 0% 0% 0% 1% 0% 0% 0% 0%100%
Sepulveda Blvd Palos Verdes Blvd Anza Ave 25198 05/2018 1142 58% 67 22574 1546 50 525 329 41 13 18 3 11 12 9 25198
0% 90% 6% 0% 2% 1% 0% 0% 0% 0% 0% 0% 0%100%
Sepulveda Blvd Madrona Ave Maple Ave 45820 04/2018 2109 58% 79 41604 2602 140 1362 183624000 45820
0% 91% 6% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Sepulveda Blvd Arlington Ave Cabrillo Ave 48933 04/2018 2339 64% 47 43059 3813 116 1845 33 2 8 100000 48933
0% 88% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Palos Verdes Blvd Sepulveda Blvd Prospect Ave 15126 06/2018 798 57% 13 12696 1614 9 761 16 3 1130000 15126
0% 84% 11% 0% 5% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Palos Verdes Blvd Catalina Ave Calle Miramar 27158 04/2018 1304 61% 49 23375 2580 52 1067 15 0 6 140000 27158
Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Class 7 Class 8 Class 9 Class 10 Class 11 Class 12 Class 13
TOTALS 2121 840051 72942 2952 34008 3407 594 1357 1840 73 220 229 188 959982
PERCENTAGES OF TOTAL 0.2% 87.5% 7.6% 0.3% 3.5% 0.4% 0.1% 0.1% 0.2% 0.0% 0.0% 0.0% 0.0%100%
PERCENT OF TRAFFIC
FOR "ALL OTHER
TRUCKS"
12.27%
ESAL SOURCE
Load Factor - 0.0008 0.0122 0.5700 0.2600 0.4200 0.4200 0.3000 1.2000 0.9300 0.8200 1.0600 1.3900
Weighted Load Factor - 0.0007 0.0009 0.0018 0.0092 0.0015 0.0003 0.0004 0.0023 0.0001 0.0002 0.0003 0.0003
TOTAL WEIGHTED ESAL
FOR "ALL OTHER
TRUCKS"
Other Truck Weighted Load Factor 0.0009 0.0018 0.0092 0.0015 0.0003 0.0004 0.0023 0.0001 0.0002 0.0003 0.0003 0.0171
AASHTO Federal Highway Administration
CALCULATION OF WEIGHTED ESAL FOR "ALL OTHER TRUCKS"
ADT (or AADT) by Vehicle Classification
HPMS Traffic Data Sought - City of Torrance 5/19/2023
Section Identification Current Traffic Data ADT (or AADT) by Vehicle Classification
ADT
Month & Year
of Traffic
Count
(MM/YYYY)
Peak
Hour
Volume
D Factor
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/2023 FRANCHISE FEE STUDIES/Anaheim/+ Expert Witness Files/REPORT ATTACHMENTS/3 - Attachment Z - All Other Truck Average ESAL / Torrance Data
Attachment 3 City of San Rafael Franchise Fee Study 12-4-2023
-
-
-
-
-
-I I I I I -I I I I I I -I I I I I I -
-
-I -
-
-
I -
-
ESAL Calc
RESIDENTIAL ESAL CALCS
SOLID WASTE
MODEL AXLE WEIGHT DISTRIBUTIONS
Front 50% Front 35.8% Front 43%
Rear 50% Rear 64.2% Rear 57%
MODEL AXLE WEIGHTS
Empty Payload
Total Weight 32,620 Total Weight 48,700 Total Weight 40,660
Front 16,276 Front 17,420 Front 16,848
Rear 16,344 Rear 31,280 Rear 23,812
32,620 48,700 40,660 16,080
8.04
DETERMINE SAE OF SOLID WASTE VEHICLES
Gross Axle
Weight Single Axle Double Axle Triple Axle
6,000 0.010 0.001 0.0003
8,000 0.034 0.003 0.001
10,000 0.088 0.007 0.002
Empty 12,000 0.189 0.014 0.003
Single Front Double Rear 14,000 0.360 0.027 0.006
weight 16,276 weight 16,344 16,000 0.623 0.047 0.011
SAE 0.675 SAE 0.052 Total SAE= 0.727 18,000 1.000 0.077 0.017
20,000 1.510 0.121 0.027
Full 22,000 2.180 0.180 0.04
Single Front Double Rear 24,000 3.030 0.260 0.057
weight 17,420 weight 31,280 26,000 4.090 0.364 0.08
SAE 0.891 SAE 0.771 Total SAE= 1.662 28,000 5.390 0.495 0.109
30,000 6.970 0.658 0.145
Average = 1.195 32,000 8.880 0.857 0.191
34,000 11.180 1.095 0.246
Half Full 36,000 13.930 1.380 0.313
Single Front Double Rear 38,000 17.200 1.700 0.393
weight 16,848 weight 23,812 40,000 21.080 2.080 0.487
SAE 0.783 SAE 0.252 Total SAE = 1.035 42,000 25.640 2.510 0.597
RESIDENTIAL ESAL CALCS
RECYCLABLES
MODEL AXLE WEIGHT DISTRIBUTIONS
Front 50% Front 41.5% Front 46%
Rear 50% Rear 58.5% Rear 54%
MODEL AXLE WEIGHTS
Empty Payload
Total Weight 32,620 Total Weight 40,640 Total Weight 36,630
Front 16,276 Front 16,847 Front 16,561
Rear 16,344 Rear 23,793 Rear 20,069
32,620 40,640 36,630 8,020
4.01
SAE Equivalents
Empty Full (Average Payload)Half Full
Full (Average Payload)Half Full
Empty Full (Average Payload)Half Full
Full (Average Payload)Half Full
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/2023 FRANCHISE FEE STUDIES/Anaheim/+ Expert Witness Files/REPORT
ATTACHMENTS/4 - Refuse Vehicle ESAL calcs / ESAL Calc
Attachment 4 Cit\ of San Rafael Franchise Fee Stud\ 2-4-2023
I I
I I
I
I I
ESAL Calc
DETERMINE SAE OF RECYCLING VEHICLES
Gross Axle
Weight Single Axle Double Axle Triple Axle
6,000 0.010 0.001 0.0003
8,000 0.034 0.003 0.001
10,000 0.088 0.007 0.002
Empty 12,000 0.189 0.014 0.003
Single Front Double Rear 14,000 0.360 0.027 0.006
weight 16,276 weight 16,344 16,000 0.623 0.047 0.011
SAE 0.675 SAE 0.052 Total SAE= 0.727 18,000 1.000 0.077 0.017
20,000 1.510 0.121 0.027
Full 22,000 2.180 0.180 0.04
Single Front Double Rear 24,000 3.030 0.260 0.057
weight 16,847 weight 23,793 26,000 4.090 0.364 0.08
SAE 0.783 SAE 0.252 Total SAE= 1.034 28,000 5.390 0.495 0.109
30,000 6.970 0.658 0.145
Average = 0.881 32,000 8.880 0.857 0.191
34,000 11.180 1.095 0.246
Half Full 36,000 13.930 1.380 0.313
Single Front Double Rear 38,000 17.200 1.700 0.393
weight 16,561 weight 20,069 40,000 21.080 2.080 0.487
SAE 0.729 SAE 0.056 Total SAE = 0.784 42,000 25.640 2.510 0.597
RESIDENTIAL ESAL CALCS
GREEN WASTE
MODEL AXLE WEIGHT DISTRIBUTIONS
Front 50% Front 35.8% Front 43%
Rear 50% Rear 64.2% Rear 57%
MODEL AXLE WEIGHTS
Empty Payload
Total Weight 32,620 Total Weight 47,100 Total Weight 39,860
Front 16,276 Front 17,306 Front 16,791
Rear 16,344 Rear 29,794 Rear 23,069
32,620 47,100 39,860 14,480
8.04
DETERMINE SAE OF YARD WASTE VEHICLES
Gross Axle
Weight Single Axle Double Axle Triple Axle
6,000 0.010 0.001 0.0003
8,000 0.034 0.003 0.001
10,000 0.088 0.007 0.002
Empty 12,000 0.189 0.014 0.003
Single Front Double Rear 14,000 0.360 0.027 0.006
weight 16,276 weight 16,344 16,000 0.623 0.047 0.011
SAE 0.675 SAE 0.052 Total SAE= 0.727 18,000 1.000 0.077 0.017
20,000 1.510 0.121 0.027
Full 22,000 2.180 0.180 0.04
Single Front Double Rear 24,000 3.030 0.260 0.057
weight 17,306 weight 29,794 26,000 4.090 0.364 0.08
SAE 0.869 SAE 0.641 Total SAE= 1.510 28,000 5.390 0.495 0.109
30,000 6.970 0.658 0.145
Average = 1.119 32,000 8.880 0.857 0.191
SAE Equivalents
SAE Equivalents
Empty Full (Average Payload)Half Full
Full (Average Payload)Half Full
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/2023 FRANCHISE FEE STUDIES/Anaheim/+ Expert Witness Files/REPORT
ATTACHMENTS/4 - Refuse Vehicle ESAL calcs / ESAL Calc
Attachment 4 Cit\ of San Rafael Franchise Fee Stud\ 2-4-2023
I I
I I
I
I I
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I I
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ESAL Calc
34,000 11.180 1.095 0.246
Half Full 36,000 13.930 1.380 0.313
Single Front Double Rear 38,000 17.200 1.700 0.393
weight 16,791 weight 23,069 40,000 21.080 2.080 0.487
SAE 0.772 SAE 0.223 Total SAE = 0.995 42,000 25.640 2.510 0.597
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/2023 FRANCHISE FEE STUDIES/Anaheim/+ Expert Witness Files/REPORT
ATTACHMENTS/4 - Refuse Vehicle ESAL calcs / ESAL Cal
Attachment 4 Cit\ of San Rafael Franchise Fee Stud\ 2-4-2023
Attachment 5 City of San Rafael Franchise Fee Study 12-4-2023• • •
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Attachment 6 City of San Rafael Franchise Fee Study 12-4-2023
PUBLISHED BY THE
AMERICAN ASSOCIATION OF STATE HIGHWAY AND TRANSPORTATION OFFICIALS
Attachment 6 City of San Rafael Franchise Fee Study 12-4-2023
D-6 Design of Pa1·e,.
Table D.4. Axle Load Equivalency Factors for Flexible Pavements,i._8jngle Axles and p1
.Axle Load Pavement Structural Number (SN)
(kips) 1 2 3 4
2 .0004 .0004 .0003 .0002 .0002
4 .003 .004 .004 .003 02_
6 .011 .017 .017 .013 .0lO v'
8 .032 .047 .051 .041 .034
IO .078 .102 .118 .102 .088
12 .168 . 198 .229 .213 .189
14 .328 .358 .399 .388 .360
16 .591 .613 .646 .645 .623
18 1.00 1.00 1.00 1.00 1.00
20 1.61 1.57 1.49 1.47 l 1.51
22 2.48 2.38 2.17 2.09 2. 18
24 3.69 3.49 3.09 2.89 3.03
26 5.33 4.99 4.31 3.91 4.09
28 7.49 6.98 5.90 5.21 5.39
30 10.3 9 .5 7.9 6 .8 7.0
32 13 .9 12.8 10.5 8 .8 8.9
34 18.4 16.9 13.7 11.3 11.2
36 24.0 22.0 17.7 14.4 13.9
38 30.9 28.3 22.6 18.1 , 17.2
40 39.3 35.9 28.5 22.5 21.1
42 49.3 45.0 35.6 27.8 _25.6
44 -6T_f ___ 55.9 44.0 34.0 31.0
46 75.5 68.8 54.0 41.4 37.2
48 92.2 83 .9 65.7 50.1 44.5
50 112 . 102. 79 . 60. 53.
Attachment 6 City of San Rafael Franchise Fee Study 12-4-2023
D-7 ..
D.S. Axle Load Equivalency Factors for Flexible Pavements, Tandem les and Pt of 2.5
Pavement Structural Number (SN)
1 2 3 4 s 6
.0001 .0001 .0001 .0000 .0000 .0000
.0005 .0005 .0004 .0003 .0003 .0002
.002 .002 .002 .001 .001 ✓ .001
.004 .006 .005 .004 .003 .003
.008 .013 .011 .009 .007 .006
.015 .024 .023 .018 .014 .013
.026 .041 .042 .033 .027 .024
.044 .065 .070 .057 .047 .043
.070 .097 .109 .092 .077 .070
.107 .141 .162 .141 .121 .llO
.160 .198 .229 .207 .180 .166
.231 .273 .3 15 .292 .260 .242
.327 .370 .420 .401 .364 .342
.451 .493 .548 .534 .495 .470
.611 .648 .703 .695 .658 .633
.813 .843 .889 .887 .857 .834
1.06 1.08 1.11 1.11 1.09 1.08
1.38 1.38 1.38 1.38 1.38 1.38
1.75 1.73 1.69 1.68 1.70 1.73
2.21 2.16 2.06 2.03 ' 2.08 2.14
2.76 2.67 2.49 2.43 2.51 2.61
3.4 1 3.27 2.99 2.88 3.00 3.16
4.18 3.98 3.58 3.40 3.55 3 .79
5.08 4.80 4.25 3.98 4 .17 4.49
6.12 5.76 5.03 4.64 4.86 5.28
7.33 6 .87 5.93 5.38 5.63 6.17
8.72 8.14 6.95 6.22 6.47 7 .15
10.3 9 .6 8.1 7 .2 7.4 8.2
12.1 11.3 9.4 8.2 8.4 9.4
14.2 13.1 10.9 9.4 9.6 10.7
16 .5 15.3 12.6 10.7 10.8 12.1
19.1 17.6 14.5 12.2 12.2 13.7
22.1 20.3 16.6 13.8 13.7 15.4
25.3 23 .3 18.9 15.6 15.4 17.2
29.0 26.6 21.5 17.6 17.2 19.2
33.0 30.3 24.4 19.8 19.2 21.3
37.5 34.4 27.6 22.2 21.3 23.6
42.5 38.9 3 1.1 24.8 23.7 26.1
48.0 43.9 35.0 27.8 26.2 28.8
54.0 49.4 39.2 30.9 29.0 31.7
60.6 55.4 43.9 34.4 32.0 34.8
67.8 61.9 49.0 38.2 35.3 38. I
75.7 69 .1 54.5 42.3 38.8 41.7
84.3 76.9 60.6 46 .8 42.6 45.6
93.7 85.4 67.1 51.7 46.8 49.7
Exhibit B - Cost of Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee
The City adopts the Cost of Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee set
forth below. Amounts shown are annual calendar year figures effective January 1, 2025
through December 31, 2025.
Cost of Service Fee - $1,945,401
Refuse Vehicle Impact Fee - $1,480,601
Franchise Fee - $1,216,000
Effective January 1, 2026, and annually every January 1st thereafter, the Cost of Service Fee
and the Franchise Fee shall be adjusted in proportion to the annual percentage change in
the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco Bay Area
(U.S. Bureau of Labor Statistics series ID: CUURS49BSA0). The Vehicle Impact Fee is not
subject to annual adjustment.
CITY OF SAN RAFAEL
EXHIBIT C - SCHEDULE OF RATES
RESIDENTIAL REFUSE COLLECTION RATES
Rate increase: 5.24%
Effective date: 01/01/2025
Weekly Service Rates (Billed Quarterly)
Monthly Rate Quarterly Rate Monthly Rate Quarterly Rate
20 gallon cart $47.69 $143.07 $54.00 $162.00
32 gallon cart $56.10 $168.30 $63.55 $190.65
64 gallon cart $112.20 $336.60 $127.10 $381.30
96 gallon cart $168.30 $504.90 $190.65 $571.95
Low income - 20 gal* cart $38.15 $114.45 $43.20 $129.60
Low income - 32 gal* cart $44.88 $134.64 $50.84 $152.52
Low income - 64 gal* cart $89.76 $269.28 $101.68 $305.04
Low income - 96 gal* cart $134.64 $403.92 $152.52 $457.56
Senior rate**Discontinued $39.60 $118.80 $50.43 $151.29
Additional Organics Cart Rental $3.00 $9.00 $3.00 $9.00
(35 or 64 gallon cart)
Additional Split Cart Rental $3.00 $9.00 $3.00 $9.00
(64 or 96 gallon cart)
Additional Monthly Charges Monthly Fee Quarterly Fee
(per cart, each way)
Distance 0' - 50'$7.27 $21.81
Distance Over 50'$14.74 $44.22
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.
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Flat rate 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 MONTHLY COLLECTION RATES
Rate increase: 5.24%
Effective date: 01/01/2025
COMMERCIAL CARTS, BINS, ROLL-OFFS
Garbage 1 23456
20 gallon cart*$47.69 $95.38 $143.07 $190.76 $238.45 $286.14 $11.01
32 gallon cart $55.72 $111.44 $167.16 $222.88 $278.60 $334.32 $12.86
64 gallon cart $111.44 $222.88 $334.32 $445.76 $557.20 $668.64 $25.72
96 gallon cart $167.16 $334.32 $501.48 $668.64 $835.80 $1,002.96 $38.58
1 yard bin $362.16 $731.28 $1,107.34 $1,490.46 $1,880.43 $2,277.35 $83.58
2 yard bin $532.49 $1,223.43 $1,856.00 $2,502.48 $3,162.89 $3,837.21 $122.88
3 yard bin $693.10 $1,290.65 $1,967.38 $2,664.85 $3,383.30 $4,122.60 $159.95
4 yard bin $988.77 $1,827.85 $2,783.44 $3,766.97 $4,511.10 $5,817.49 $228.18
5 yard bin $1,069.58 $2,151.10 $3,278.97 $4,441.45 $5,638.89 $6,871.00 $246.83
6 yard bin $1,269.78 $2,581.32 $3,934.73 $5,329.80 $6,766.61 $8,245.22 $293.03
10 yard roll-off $1,789.69 $3,662.49 $5,620.67 $7,661.30 $9,785.51 $11,993.15 $413.01
18 yard roll-off $3,214.47 $6,579.40 $10,094.58 $13,760.08 $17,575.90 $21,542.11 $741.80
20 yard roll-off $3,571.75 $7,310.42 $11,216.17 $15,288.94 $19,528.78 $23,935.63 $824.25
25 yard roll-off $4,996.30 $10,226.48 $15,075.71 $20,549.69 $26,248.43 $32,171.73 $1,152.99
Organics (F2E or Compost)1 23456
Additional One
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32 gallon $23.11 $46.22 $69.33 $92.44 $115.55 $138.66 $5.33
64 gallon $46.22 $92.44 $138.66 $184.88 $231.10 $277.32 $10.67
1 yard $161.72 $323.44 $485.16 $646.88 $808.60 $970.32 $37.32
2 yard $323.44 $646.88 $970.32 $1,293.76 $1,617.20 $1,940.64 $74.64
3 yard $485.16 $970.32 $1,455.48 $1,940.64 $2,425.80 $2,910.96 $111.96
10 yard roll-off $1,252.78 $2,505.56 $3,758.34 $5,011.12 $6,263.90 $7,516.68 $289.10
18 yard roll-off $2,255.00 $4,510.00 $6,765.00 $9,020.00 $11,275.00 $13,530.00 $520.38
20 yard roll-off $2,505.56 $5,011.12 $7,516.68 $10,022.24 $12,527.80 $15,033.36 $578.21
25 yard roll-off $3,131.95 $6,263.90 $9,395.85 $12,527.80 $15,659.75 $18,791.70 $722.76
Garbage Compactors (Per empty)
Roll-off Compactor Tipping fee per ton $153.82 Roll-off Compactor Hauling charge $345.73
Stationary FL (Per Compacted Yard) $133.58 Roll-off Compactor Special handling Rates Vary
Service Fee Details
Lock $25.00 Monthly fee per collection and commodity
Box rental Fees Vary Minimum Bimonthly fee
Minimum Load ML Fees Vary
Distance < 50ft $7.27 Monthly fee per cart, each way
Distance > 50ft $14.74 Monthly fee per cart, each way
On Call rate only available with approval from Route Manager
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
Additional Empty/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.
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.
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* 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.
CITY OF SAN RAFAEL
EXHIBIT C - SCHEDULE OF RATES
MULTI-FAMILY DWELLING REFUSE MONTHLY COLLECTION RATES
Rate increase: 5.24%
Effective date: 01/01/2025
MFD CARTS, BINS, ROLL-OFFS
Garbage 1 23456
20 gallon cart* $47.69 $95.38 $143.07 $190.76 $238.45 $286.14 $11.01
32 gallon cart $56.10 $112.20 $168.30 $224.40 $280.50 $336.60 $12.95
64 gallon cart $112.20 $224.40 $336.60 $448.80 $561.00 $673.20 $25.89
96 gallon cart $168.30 $336.60 $504.90 $673.20 $841.50 $1,009.80 $38.84
32 gallon - hill $63.55 $127.10 $190.65 $254.20 $317.75 $381.30 $14.67
64 gallon - hill $127.10 $254.20 $381.30 $508.40 $635.50 $762.60 $29.33
96 gallon - hill $190.65 $381.30 $571.95 $762.60 $953.25 $1,143.90 $44.00
1 yard bin $348.99 $703.53 $1,063.71 $1,429.43 $1,800.69 $2,177.49 $80.54
2 yard bin $532.49 $1,220.62 $1,847.65 $2,485.76 $3,135.07 $3,795.47 $122.88
3 yard bin $693.10 $1,270.28 $1,930.51 $2,607.42 $3,301.00 $4,011.23 $159.95
4 yard bin $988.77 $1,822.30 $2,766.69 $3,733.54 $4,636.04 $5,733.94 $228.18
5 yard bin $1,069.58 $2,117.14 $3,217.45 $4,345.58 $5,501.60 $6,685.46 $246.83
6 yard bin $1,253.58 $2,540.59 $3,860.94 $5,214.72 $6,601.92 $8,022.49 $289.29
10 yard roll-off $1,789.69 $3,662.49 $5,620.67 $7,661.30 $9,785.51 $11,993.15 $413.01
18 yard roll-off $3,214.47 $6,579.40 $10,094.58 $13,760.08 $17,575.90 $21,542.11 $741.80
20 yard roll-off $3,571.75 $7,310.42 $11,216.17 $15,288.94 $19,528.78 $23,935.63 $824.25
25 yard roll-off $4,996.30 $10,226.48 $15,075.71 $20,549.69 $26,248.43 $32,171.73 $1,152.99
Organics 1 23456
Additional One
Time Empty/ on
Call
Additional Organics Cart Rental $3.00 $6.00 $9.00 $12.00 $15.00 $18.00 NA
(35 gallon cart) after 4 TOTAL carts per cart per
month
Additional Organics Cart Rental $3.00 $6.00 $9.00 $12.00 $15.00 $18.00 NA
(64 gallon cart) after 4 TOTAL carts per cart per
month.
1 yard $161.72 $323.44 $485.16 $646.88 $808.60 $970.32 $37.32
2 yard $323.44 $646.88 $970.32 $1,293.76 $1,617.20 $1,940.64 $74.64
3 yard $485.16 $970.32 $1,455.48 $1,940.64 $2,425.80 $2,910.96 $111.96
Garbage Compactors (Per empty)
Roll-off Compactor Tipping fee per ton $153.82 Roll-off Compactor Hauling charge $345.73
Stationary FL (Per Compacted Yard) $133.58 Roll-off Compactor Special handling Rates Vary
Service Fee Details
Lock $25.00 Monthly fee per collection and commodity
Box rental Fees Vary Minimum Bimonthly fee
Minimum Load ML Fees Vary
Distance < 50ft $7.27 Monthly fee per cart, each way
Distance > 50ft $14.74 Monthly fee per cart, each way
On Call rate only available with approval from Route Manager
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
Additional Empty/Bag Garbage $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 $1,200
*(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.
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FINAL REPORT
City of San Rafael
Submitted electronically on October 22, 2020
submitted electronically: October 21, 2024
Review of Marin Sanitary Service’s
2025 Rate Application
450 14th Street, Suite 350, Oakland, CA 94612 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com
October 21, 2024
John Stefanski
Assistant City Manager
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94919
submitted via email: John.Stefanski@cityofsanrafael.org
SUBJECT: Final Report – Review of Marin Sanitary Service’s 2025 Rate Application
Dear Mr. Stefanski,
R3 Consulting Group, Inc. (R3) is pleased to submit this report detailing the results of our review of
Marin Sanitary Service’s (MSS’s) 2025 rate application for the City of San Rafael.
This review was conducted pursuant to R3’s engagement with the seven agencies (Agencies) served
by MSS, including the City of San Rafael, City of Larkspur, County of Marin, Las Gallinas Valley
Sanitary District, Town of Ross, Town of Fairfax, and the Town of San Anselmo.
This report summarizes results from our review of MSS’s 2025 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.
* * * * *
We appreciate the opportunity to be of service to the City. Should you have any questions regarding
this report or need any additional information, please do not hesitate to reach out directly.
Sincerely,
Jim Howison | Sr. Managing Consultant
R3 Consulting Group, Inc.
925.768.7244 | jhowison@r3cgi.com
1. FINDINGS
City of San Rafael | Review of MSS’s 2025 Rate Application Page 1 of 4
Executive Summary
On August 30, 2024, MSS submitted its application for an increase to its solid waste rates, to be effective
January 1, 2025. This is an indexed year rate adjustment, which primarily projects compensation due to
MSS based on the applicable Water-Sewer-Trash CPI Index (WST). Based on our review of the rate
application, R3 concurs with MSS’s calculated 2025 rate revenue requirement of $31,895,957, which is
$1,587,765 higher than the 2024 rate revenue requirement of $30,308,192. The corresponding
adjustment to the City’s solid waste rates for 2025 is 5.24%, based on January 1, 2025 effective date.
Table 1: 2025 Rate Adjustment Summary
2024 2025 Dollar
Change
Percentage
Change
Adjustment
to Rates
Collector Operations 18,249,610 19,086,959 837,349 4.59% 2.76%
Garbage Landfilling and Organics
Processing 2,975,895 3,182,484 206,589 6.94% 0.68%
State Compliance Database
Subscription (4,197) 0 4,197 -100.00% 0.01%
SB 1383 Compliance 223,017 224,558 1,541 0.69% 0.01%
San Rafael Illegal Dumping
Program 123,400 571,291 447,891 362.96% 1.48%
Profit Calculation 2,264,015 2,421,219 157,204 6.94% 0.52%
Recyclable Materials Processing 749,801 660,900 (88,901) -11.86% -0.29%
Interest 415,019 434,061 19,042 4.59% 0.06%
Zero Waste Marin Fees 394,265 287,781 (106,484) -27.01% -0.35%
Cost of Service and Franchise
Fees 2,995,369 3,161,401 166,032 5.54% 0.55%
Vehicle Impact Fee 1,480,601 1,480,601 0 0.00% 0.00%
Annual Rate Revenue
Reconciliation 354,503 281,947 (72,556) -20.47% -0.24%
Recycling Property Insurance 86,894 102,755 15,861 18.25% 0.05%
Total Annual Rate Revenue
Requirement $30,308,192 $31,895,957 $1,587,765 5.24% 5.24%
City of San Rafael | Review of MSS’s 2025 Rate Application Page 2 of 4
2025 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 4.59% to Collector Operations. Per Exhibit B, the rate
adjustment is subject to a 2.5% minimum and a 5% maximum rate cap for MSS’s collection operations.
The result is $19,086,959 in Collector Operations for the City of San Rafael in 2025, which is an increase
of $837,349 compared to 2024.
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, 2024, which are then annualized to project total 2024
tonnages. Those tonnages are then multiplied by the projected 2025 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 2024 tons and the 2025 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 materially 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 4.59% WST
adjustment to project 2025 per ton tip fees. The result is $3,182,484 in Garbage and Organics Tipping
fees for the City in 2025, which is an increase $206,589 compared to 2024.
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. Zero Waste Marin has assumed responsibility for the tracking and reporting of materials. In
2024, MSS discontinued its subscription to Recyclist and received a refund of $4,197. For 2025,there is
no remaining portion of the agency’s refund.
Compliance with SB 1383
MSS is requesting continued revenue in association with SB 1383 with the goal of increasing compliance
with the State of California’s organics state mandate(s). The company will continue to provide compliance
monitoring and inspection services, contamination monitoring, outreach and education, and reporting
functions on behalf of the City. The total 2025 revenue recovery for these new SB 1383 compliance
measures for MSS is $224,558, for an increase of $1,541 or 0.69% from 2024.
Illegal Dumping 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 2024, the City allocated $123,400 for the
illegal dumping pilot program. For 2025, City staff recommends increasing the budget by $478,291 (to
$571,291 which will be incorporated into Collector Operations) due to the expansion of the program.
City of San Rafael | Review of MSS’s 2025 Rate Application Page 3 of 4
Profit Calculation
R3 reviewed the calculation of MSS’s profit, which is a function of total allowable operating expenses
($23,065,292 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 $2,421,219 in
Calculated Profit for the City in 2025, which is an increase of $157,204 compared to 2024. The increase
is due to increases 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 2025, the resulting Net Recyclable Materials
Processing Cost Per Ton is $73.58, a decrease of $5.29 from the 2024 value of $78.87. The result is
$660,900 in Recyclable Materials Processing costs for the City in 2025, which is a decrease of $88,901.
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 $434,061 in interest for the City in 2025, which is an increase of $19,042 compared to 2024.
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. Zero Waste Marin 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. The
result is $287,781 in Zero Waste Marin Fees for the City in 2025, which is a decrease of $106,484
compared to 2024. The decrease is due to grant funding obtained by Zero Waste Marin which is
offsetting the need for fees in 2025.
Cost of Service and Franchise Fee
The City’s Cost of Service Fee is set by the City to cost the City’s costs associated with management and
administration of the Agreement with MSS and the solid waste utility. The Franchise Fee is established
via agreement of the City and MSS and for the value of City property used by MSS in collection
operations. Taken together, the Cost of Service Fee and Franchise Fee amount to $3,161,401 in in 2025.
Vehicle Impact Fee
MSS pays the City a $1,480,601 Vehicle Impact Fee to cover the cost of road impacts from MSS’s solid
waste collection vehicles, which is set by the City.
City of San Rafael | Review of MSS’s 2025 Rate Application Page 4 of 4
Annual Rate Revenue Reconciliation
The Rate Revenue Reconciliation item is to reconcile the projected rate revenue from the 2023 rate
adjustment to the actual revenue collected through rates charged during the 2022 rate year. MSS
experienced a shortfall of $281,947 in 2023 billed revenues in the City compared to the 2023 revenue
requirement. That amount is therefore included in the 2025 rate application.
Recycling Property Insurance
Property insurance for recycling processing facilities has gone up across the country due to due to fire
risks from lithium batteries. MSS has had no such claims but has received rate increases based on its risk
profile. 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 result is $660,900 in Recycling Property Insurance for the City in 2025, which is an increase of
$15,861 compared to 2024.
Survey of Comparable Rates
Figure 1 illustrates R3's survey of solid waste rates as of October 2024 for agencies located throughout
Marin County. These survey results are presented as an indication of the reasonableness of the resulting
rates for 2025. For comparison purposes, agencies serviced by Marin Sanitary Services (MSS) are
designated in green and represent the proposed pricing for 32-gallon cart, including the current rate
increase. Other, non-MSS service agencies are designated in blue and are current rates, though rate
increases are expected for 2025 as well. The average cost for the 30–35-gallon cart for non-MSS service
agencies is represented by the grey line is $57.18. The 32-gallon cart is projected to cost $56.10 per
month for the flat regions of the City. The 2025 Hill Rate for the 32-gallon cart is projected at $63.55 per
month. The City’s commercial rates for a 3-cubic yard bin serviced one time per week will be $693.10
compared to $658.59 the previous year.
Figure 1: Comparison of MSS’s 2025 Rates to Other Marin County Agencies
$57.18
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
Customer Owned Cart Implementation Plan
Messaging Plan
Type Description Delivery Date
Website updated Rationale and details on program change December 2024(once approved)
Postcard mailed Rationale for program change January 2025
Email campaign Program change details January 2025
Social Media
Campaign
Program change details January-February 2025
Cart hanger Reminder that own cans will no longer be
accepted after March 1, 2025, for
customers who put out extra cans/bags.
January 2025
Cart hanger Explanation of why cart/bags were not
collected
March 1, 2025 forward
Elimination of Customer-Owned Cans Roll-Out
1. Beginning January 1, 2025
a. Residential customers will be educated on the new program rules which go into effect March
1, 2025.
b. Customers may call in for one (1) additional bundled cart or to exchange to a larger cart, at
no charge.
c. Customers may rent up to four additional organics carts for a total of 6 organics carts.
d. Program basics:
i. Owner organics cans will continue to be collected until February 28, 2025
ii. ALL customers who set out owner cans will have a cart hanger left with information on
the new program EVERY TIME THE OWNER CANS ARE EMPTIED in January and
February 2025.
1. The following documentation will be collected from January 1-February 28, 2025
every time a customer sets out owner cans:
a. Date
b. Customer Name
c. Customer Address
d. Number of owner cans set out
2. Effective March 1, 2025
1. No customer owned carts or extra bags will be allowed for service
2. MSS will remove and recycle any personal cans at the customer’s request through
May 1, 2025 at no additional cost.
CITY OF SAN RAFAEL
NOTICE OF PUBLIC HEARING BEFORE THE SAN RAFAEL CITY COUNCIL
You are invited to attend the City Council hearing on the following: consideration of (1) amendments to the
City’s franchise agreement with Marin Sanitary Service; (2) authorization of maximum rates allowed by Marin
Sanitary Service for refuse and recycling collection and adoption of City fees imposed on Marin Sanitary
Service related to their provision of solid waste services.
DATE/TIME: Monday, November 4, at 6:00 p.m.
LOCATION: City Council Chambers, City Hall, 1400 Fifth Avenue, San Rafael, CA 94901
PURPOSE:
1. To consider amendments to the franchise agreement with Marin Sanitary Service to include a new illegal
dumping program, to require use of Marin Sanitary Service carts for refuse service, and to change how
franchise fees are calculated.
2. To consider a request by Marin Sanitary Service for a rate increase of 5.24% for refuse and recycling
collection and services and to consider adopting a Resolution authorizing maximum rates to be charged by
Marin Sanitary Service for the year 2025 and adopting City fees to be imposed on Marin Sanitary Service for
the City’s costs of providing services and/or benefits related to solid waste services and for the value of
property used by Marin Sanitary Service in the provision of solid waste-related services.
WHAT WILL HAPPEN:
Staff will provide a presentation, members of the public can provide comments/questions, and the City Council
will consider all public testimony, deliberate, and determine how to proceed with the recommendation provided
by staff.
IF YOU CANNOT ATTEND:
You may submit comments regarding the proposed item by 4:00 p.m. the day of the hearing to Lindsay Lara,
City Clerk, City of San Rafael, 1400 Fifth Avenue, San Rafael, CA 94901, or by email to
city.clerk@cityofsanrafael.org. You can also hand deliver a letter prior to the public hearing. The City Clerk’s
office will forward your comments to the City Council and publish correspondence received to the agenda
online. Comments received after 4:00 p.m. will be forwarded to the City Council and posted online the following
day.
FOR MORE INFORMATION:
For additional information regarding the above, you may contact Cory Bytof, Sustainability Program Manager
for the City of San Rafael at (415) 485-3407 or cory.bytof@cityofsanrafael.org. Office hours are Monday-
Friday, 8:30 AM to 5:00 PM. You can also view the staff report after 4:00 p.m. on the Friday before the meeting
at https://www.cityofsanrafael.org/city-council-meetings/
/s/ Lindsay Lara
Lindsay Lara
City Clerk
City of San Rafael
To be published in the Marin IJ twice: October 25th and October 30th
