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Home My WebLink AboutCC Resolution 13663 (MSS Rates 2014)RESOLUTION NO.13663 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ESTABLISHING MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE FOR REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES, TO BE EFFECTIVE JANUARY 1, 2014 WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into a written Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service dated September 4, 2001; and, WHEREAS, the City of San Rafael and Marin Sanitary Service have since entered into a written Second Amendment to the Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service dated November 14, 2012; and, WHEREAS, Section 3 (B) of the Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service provides for maximum rates allowed to be collected by Marin Sanitary Service to be amended from time to time by the City Council; and, WHEREAS, Exhibit "C" of the Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service provides for approved rate setting tables, as amended, to be included as part of this Agreement; and, WHEREAS, Marin Sanitary Service has submitted a rate application request using the methodology outlined under Section 3 (A) of the Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service; and, WHEREAS, the City of San Rafael has conducted a review of said rate application and produced a report recommending rate and fee adjustments; and, WHEREAS, the City of San Rafael has determined that such rate and fee adjustments are proper, in the best interest of all citizens, and will promote public health, safety and welfare. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: The following schedule of maximum rates and fees, attached hereto as "Exhibit C' is hereby approved to be collected by Marin Sanitary Service for refuse and recyclable material collection and disposal services, to be effective January 1, 2014. Said "Exhibit C" shall be incorporated as the revised Exhibit "C" and shall be included as part of the Second Amendment to the Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service dated November 14, 2012. I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, December 16, 2013, by the following vote, to wit: AYES: Councilmembers: Bushey, Colin, McCullough & Vice -Mayor Connolly NOES: Councilmembers: None ABSENT: Councilmembers: Mayor Phillips ESTHER C. BEIRNE, City Clerk EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2014 Rate Increase: 5.52% Rates are per month unless otherwise specified. Residential Standard Base Rates 20 gallon can - flat* 32 gallon can - flat 64 gallon can - flat 96 gallon can - flat 20 gallon can - hill* 32 gallon can - hill 64 gallon can - hill 96 gallon can - hill 'New rate in 2008. For single family residential customers. Subject to account review by MSS Low Income Rates* Low Income - 32 gallon can - flat Low Income - 64 gallon can - flat Low Income - 32 gallon can - hill Low Income - 64 gallon can - hill ` Based on Pacific Gas & Electric CARE Program guidelines Residential customers only Other Services Compacted 32 gallon Compacted 64 gallon Distance 5'-50' Distance over 50' (per 50' each can) Additonal Yard Waste Cart Rental* *One (1) additional company -provided cart per customer Discontinued Rates** Senior rate - flat** (Bi -weekly service) Senior rate - hill** (Bi -weekly service) "Customers with these rates prior to 2005 will keep existing rate type No new customers will be added with this rate type. Apartments 32 gallon can - flat 64 gallon can - flat 96 gallon can - flat 32 gallon can - hill 64 gallon can - hill 96 gallon can - hill "'Rates are per container, per # of pickupslwk ""Minimum of one ran per un.t 2014 2013 2014 2014 RATE RATE INCREASE % INCR. $ 26.51 $ 25.13 $ 1.38 5.49% 31.19 29.56 1.63 5.51% 62.38 59.12 3.26 5.51% 93.57 88.68 4.89 5.51% 30.03 28.46 1.57 5.52% 35.33 33.48 1.85 5.53% 70.66 66.96 3.70 5.53% 105.99 100.44 5.55 5.53% $ 24.91 $ 23.61 $ 1.30 5.51% 49.82 47.22 2.60 5.51% 28.28 26.80 1.48 5.52% 56.56 53.60 2.96 5.52% $ 62.38 $ 59.12 $ 3.26 5.51% 124.76 118.24 6.52 5.51% 4.05 3.84 0.21 5.47% 8.19 7.76 0.43 5.54% 1.65 1.56 0.09 5.77% $ 22.02 $ 20.87 $ 1.15 5.51% 28.03 26.56 1.47 5.53% $ 31.19 $ 29.56 $ 1.63 5.51% 62.38 59.12 3.26 5.51% 93.57 88.68 4.89 5.51% 35.33 33.48 1.85 5.53% 70.66 66.96 3.70 5.53% 105.99 100.44 5.55 5.53% 12/9!2013 1 of 5 San Rafael - Exhibit C Rate Sheet 2014 xis EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2014 Rate Increase: 5.52% 2014 2013 2014 2014 Rates are per month unless otherwise specified. RATE RATE INCREASE % INCR. Apartments (cont.) FL 2 yd bin 1 x/week $ 296.00 $ 280.52 $ 15.48 5.52% FL 2 yd bin 2 x/week 678.48 642.99 35.49 5.52% FL 2 yd bin 3 x/week 1,027.03 973.30 53.73 5.52% FL 2 yd bin 4)/week 1,381.73 1,309.45 72.28 5.52% FL 2 yd bin 5 x/week 1,742.66 1,651.50 91.16 5.52% FL 2 yd bin 6 x/week 2,109.76 1,999.39 110.37 5.52% FL 3 yd bin 1 x/week $ 385.27 $ 365.12 $ 20.15 5.52% FL 3 yd bin 2 x/week 706.10 669.16 36.94 5.52% FL 3 yd bin 3 x/week 1,073.09 1,016.95 56.14 5.52% FL 3 yd bin 4)/week 1,449.34 1,373.52 75.82 5.52% FL 3 yd bin 5 x/week 1,834.88 1,738.89 95.99 5.52% FL 3 yd bin 6 x/week 2,229.70 2,113.06 116.64 5.52% FL 4 yd bin 1 x/week $ 549.64 $ 520.89 $ 28.75 5.52% FL 4 yd bin 2 x/week 1,012.96 959.97 52.99 5.52% FL 4 yd bin 3 x/week 1,537.90 1,457.45 80.45 5.52% FL 4 yd bin 4 x/week 2,075.33 1,966.76 108.57 5.52% FL 4 yd bin 5 )/week 2,577.00 2,442.19 13481 5.52% FL 4 yd bin 6 x/week 3,187.29 3,020.56 166.73 5.52% FL 5 yd bin 1 )/week $ 594.54 $ 563.44 $ 31.10 5.52% FL 5 yd bin 2 x/week 1,176.83 1,115.27 61.56 5.52% FL 5 yd bin 3 x/week 1,788.46 1,694.90 93.56 5.52% FL 5 yd bin 4 x/week 2,415.54 2,289.18 126.36 5.52% FL 5 yd bin 5 x/week 3,058.13 2,898.15 159.98 5.52% FL 5 yd bin 6 x/week 3,716.17 3,521.77 194.40 5.52% FL 6 yd bin 1 x/week $ 696.80 $ 660.35 $ 36.45 5.52% FL 6 yd bin 2 x/week 1,412.21 1,338.33 73.88 5.52% FL 6 yd bin 3 x/week 2,146.14 2,033.87 112.27 5.52% FL 6 yd bin 4 x/week 2,898.68 2,747.04 151.64 5.52% FL 6 yd bin 5 x/week 3,669.76 3,477.79 191.97 5.52% FL 6 yd bin 6 x/week 4,459.39 4,226.11 233.28 5.52% RL 1 yd bin 1 )/week $ 193.99 $ 183.84 $ 10.15 5.52% RL 1 yd bin 2 x/week 391.07 370.61 20.46 5.52% RL 1 yd bin 3 x/week 591.28 560.35 30.93 5.52% RL 1 yd bin 4 )/week 794.57 753.00 41.57 5.52% RL 1 yd bin 5 x/week 1,000.92 948.56 52.36 5.52% RL 1 yd bin 6 x/week 1,210.38 1,147.06 63.32 5.52% (No longer offered to new customers) 12`9/2013 2 of 5 San Rafael - Exhibit C Rate Sheet 2014.xls EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/0112014 Rate Increase: 5.52% 2014 2013 2014 2014 Rates are per month unless otherwise specified. RATE RATE INCREASE % INCR. Apartments (cont.) RL 2 yd bin 1 x/week $ 296.80 $ 281.27 $ 15.53 5.52% RL 2 yd bin 2 x/week 593.79 562.73 31.06 5.52% RL 2 yd bin 3 x/week 899.98 852.90 47.08 5.52% RL 2 yd bin 4 x/week 1,212.36 1,148.94 63.42 5.52% RL 2 yd bin 5 x/week 1,742.66 1,651.50 91.16 5.52% RL 2 yd bin 6 x/week 2,109.76 1,999.39 110.37 5.52% Compacted refuse: RO Hauling Charge (Per container per pull) $ 192.18 RO Tipping Fee per ton $ 85.50 Commercial 32 gallon can $ 30.99 $ 29.37 $ 1.62 5.52% 64 gallon can 61.98 58.74 3.24 5.52% 96 gallon can 92.97 88.11 4.86 5.52% Compacted 32 gallon 61.98 58.74 3.24 5.52% Compacted 64 gallon 123.96 117.48 6.48 5.52% Food waste 32 gallon 21.69 Food waste 64 gallon 43.39 Bags (32 gallon) 30.99 29.37 1.62 5.52% Rates are per container, per # of pickups/wk Food Waste service: no charge for the first pickup of first cart FL 2 yd bin per pickup $ 75.10 $ 71.17 $ 3.93 5.52% FL 2 yd bin 1 x/week 296.00 280.52 15.48 5.52% FL 2 yd bin 2 x/week 680.03 644.46 35.57 5.52% FL 2 yd bin 3 x/week 1,031.68 977.71 53.97 5.52% FL 2 yd bin 4 x/week 1,391.02 1,318.25 72.77 5.52% FL 2 yd bin 5 x/week 1,758.14 1,666.17 91.97 5.52% FL 2 yd bin 6 x/week 2,132.96 2,021.38 111.58 5.52% FL 3 yd bin per pickup $ 92.20 $ 87.38 $ 4.82 5.52% FL 3 yd bin 1 x/week 385.27 365.12 20.15 5.52% FL 3 yd bin 2 x/week 717.45 679.92 37.53 5.52% FL 3 yd bin 3 x/week 1,093.57 11036.36 57.21 5.52% FL 3 yd bin 4 x/week 1,481.30 1,403.81 77.49 5.52% FL 3 yd bin 5 x/week 1,880.65 1,782.27 98.38 5.52% FL 3 yd bin 6 xtweek 2,291.58 2,171.70 119.88 5.52% FL 4 yd bin per pickup $ 134.94 $ 127.88 $ 7.06 5.52% FL 4 yd bin 1 x1week 549.64 520.89 28.75 5.52% FL 4 yd bin 2 x/week 1,016.05 962.90 53.15 5.52°1 FL 4 yd bin 3 x/week 1,547.19 1,466.25 80.94 5.52% FL 4 yd bin 4 )Meek 2,093.91 1,984.37 109.54 5.52% FL 4 yd bin 5 xiweek 2.507.54 2,376.36 13118 5.52% FL 4 yd bin 6 xlweek 3,233.73 3.064.57 169.16 5.52% FL 5 yd bin per pickup $ 143.87 $ 136.34 $ 7.53 5.52% FL 5 yd bin 1 xlweek 594.54 563.44 31 10 5.52% FL 5 yd bin 2 xtweek 1,195.73 1,133.18 62.55 5.52% FL 5 yd bin 3 xtweek 1 822.64 1,72729 95.35 5.52/0 FL 5 yd bin 4 x`week 2,468.85 2,33970 129.15 5.52% FL 5 yd bin 5 x'week 3,134.43 2,970.46 163.97 5.52% FL 5 yd bin 6 xiweek 3,819.34 3,619.54 199.80 5.52% 12'9i2013 3 of 5 San Rafael - Exhibit C Rate Sheet_2014.xis EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2014 Rate Increase: 5.52% 2014 2013 2014 2014 Rates are per month unless otherwise specified. RATE RATE INCREASE % INCR. Commercial (cont) FL 6 yd bin per pickup $ 164.01 $ 155.43 $ 8.58 5.52% FL 6 yd bin 1 x/week 705.84 668.92 36.92 5.52% FL 6 yd bin 2 x/week 1,434.87 1,359.81 75.06 5.52% FL 6 yd bin 3 x/week 2,187.16 2,072.74 114.42 5.52% FL 6 yd bin 4 x/week 2,962.62 2,807.64 154.98 5.52% FL 6 yd bin 5 x(week 3,761.29 3,564.53 196.76 5.52% FL 6 yd bin 6 x/week 4,583.20 4,343.44 239.76 5.52% RL 1 yd bin 1 x/week $ 201.31 $ 190.78 $ 10.53 5.52% RL 1 yd bin 2 x/week 406.47 385.21 21.26 5.52% RL 1 yd bin 3 x/week 615.54 58334 32.20 5.52% RL 1 yd bin 4 x/week 828.46 785.12 43.34 5.52% RL 1 yd bin 5 x/week 1,045.24 990.56 54.68 5.52% RL 1 yd bin 6 x/week 1,265.91 1,199.69 66.22 5.52% (No longer offered to new customers) RL 2 yd bin 1 x(week $ 304.89 $ 288.94 $ 15.95 5.52% RL 2 yd bin 2 x/week 617.53 585.23 32.30 5.52% RL 2 yd bin 3 x/week 937.88 888.82 49.06 5.52% RL 2 yd bin 4 x/week 1,266.01 1,199.78 66.23 5.52% RL 2 yd bin 5 x/week 1,758.14 1,666.17 91.97 5.52% RL 2 yd bin 6)/Week 2,132.96 2,021.38 111.58 5.52% RO 10 yd box per pickup 233.66 $ 221.44 $ 12.22 5.52% RO 10 yd box 1 x/week 994.81 942.77 52.04 5.52% RO 10 yd box 2 x/week 2,035.83 1,929.33 106.50 5.52% RO 10 yd box 3 x/week 3,124.34 2,960.90 163.44 5.52% RO 10 yd box 4 x/week 4,258.64 4,035.86 222.78 5.52% RO 10 yd box 5 x/week 5,439.39 5,154.84 284.55 5.52% RO 10 yd box 6 x/week 6,666.52 6,317.78 348.74 5.52% RO 12 yd box per pickup $ 280.41 $ 265.74 $ 14.67 5.52% 1219/2013 4 of 5 San Rafael - Exhibit C Rate Sheet 2014.xls EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2014 Rate Increase: 5.52% 2014 2013 2014 2014 Rates are ver month unless otherwise specified. RATE RATE INCREASE % INCR. Commercial (cont.) RO 18 yd box per pickup $ 420.62 $ 398.62 $ 22.00 5.52% RO 18 yd box 1 x/week 1,786.82 1,693.35 93.47 5.52% RO 18 yd box 2 xJweek 3,657.24 3,465.92 191.32 5.52% RO 18 yd box 3 x/week 5,611.18 5,317.65 293.53 5.52% RO 18 yd box 4x/week 7,648.70 7,248.58 400.12 5.52% RO 18 yd box 5 x/week 9,769.77 9,258.69 511.08 5.52% RO 18 yd box 6 x/week 11,974.43 11,348.02 626.41 5.52% RO 20 yd box per pickup $ 467.36 $ 442.91 $ 24.45 5.52% RO 20 yd box 1 x/week 1,985.38 1,881.52 103.86 5.52% RO 20 yd box 2 x/week 4,063.60 3,851.02 212.58 5.52% RO 20 yd box 3x/week 6,234.65 5,908.50 326.15 5.52% RO 20 yd box 4 x/week 8,498.54 8,053.96 444.58 5.52% RO 20 yd box 5 x/week 10,855.32 10,287.45 567.87 5.52% RO 20 yd box 6 x/week 13,304.90 12,608.89 696.01 5.52% RO 25 yd box per pickup $ 584.18 $ 553.62 $ 30.56 5.52% RO 25 yd box 1 x/week 2,777.27 2,631.98 145.29 5.52% RO 25 yd box 2 x/week 5,684.51 5,387.14 297.37 5.52% RO 25 yd box 3 x/week 8,380.02 7,941.64 438.38 5.52% RO 25 yd box 4x/week 11,422.76 10,825.21 597.55 5.52% RO 25 yd box 5 x/week 14,590.48 13,827.22 763.26 5.52% RO 25 yd box 6 x/week 17,883.04 16,947.54 935.50 5.52% Compacted refuse: RO Hauling Charge (Per container per pull) $ 192.18 RO Tipping Fee per ton $ 85.50 Lock Charges - single pickup $ 4.52 $ 4.28 $ 0.24 5.61% Lock Charges - weekly pickup 20.57 19.49 1.08 5.54% Refuse per yard - per pickup 28.68 27.18 1.50 5.52% Box Rental - 1 yard 60.74 57.56 3.18 5.52% Box Rental - 2 yard 68.37 64.79 3.58 5.53% Box Rental - 3-5 yard 75.62 71.66 3.96 5.53% Box Rental - 6 yard 85.44 80.97 4.47 5.52% Box Rental - 10 yard 100.81 95.54 5.27 5.52% Box Rental - 18 yard 202.02 191.45 10.57 5.52% Box Rental - 20 yard 204.99 194.27 10.72 5.52% Box Rental - 25 yard 213.59 202.42 11.17 5.52% Return Trip Charge 44.46 42.13 2.33 5.53% Steam Clean Bin Charge 89.09 84.43 4.66 5.52% Overweight Charge Per Ton*** 167.48 158.72 8.76 5.52% ***Comm'I boxes exceeding 300lbslyard 2`912013 5 of 5 San Rafael - Exhibit C Rate Sheet -2014 xts December 10, 2013 r - . This report provided electronically to save environmental resources December 10, 2013 Sent via email Mr. Daniel Schwarz City Manager City of Larkspur 400 Magnolia Avenue Larkspur, CA 94939 Mr. Michael Frost Deputy Director of Public Works County of Marin 3501 Civic Center Drive, Room 304 San Rafael, CA 94903-4155 Ms. Susan McGuire Administrative Services Manager Las Gallinas Valley Sanitary District 300 Smith Ranch Road San Rafael, CA 94903 Mr. Jim Schutz Assistant City Manager City of San Rafael 1400 Fifth Avenue San Rafael, CA 94919-1560 Mr. Rob Braulik Town Manager Town of Ross 31 Sir Francis Drake Blvd Ross, CA 94957 Reference Number: 53847 , Subject: Review of Marin Sanitary Service's 2014 Rate Application Dear Ms. McGuire and Messrs. Schwarz, Schutz, Frost, and Braulik: On August 1, 2013, Marin Sanitary Service (MSS) submitted its application for an 8.98% increase to its solid waste rates, effective January 1, 2014. HF&H conducted our review of the application based on the rate methodology agreed to between MSS and the cities of San Rafael and Larkspur, the Town of Ross, the County of Marin, and the Las Gallinas Valley Sanitary District (LGVSD) collectively referred to as the "Franchisors". We find that a 5.52°f increase is appropriate. The following table summarizes, by jurisdiction, the current and proposed 32 -gallon residential rates, which are the most common subscription level. Table 1: Residential 32 -gallon Rate Summary inrfi Sps anvil FRecormnendations Upon receipt of the application, HF&H reviewed the documents for completeness and compliance with the procedures agreed upon by MSS and the Franchisors and verified the mathematical accuracy and logical consistency of the supporting schedules. Based on our review of the application, we determined that a net rate increase of 5.52% to rates is appropriate to compensate MSS for its projected expenses based on the agreed upon procedures. The following table summarizes the components of the rate adjustment: Table 2: Rate Adjustment Components 2014 Component Percentages Wages 0.86% Benefits (including workers comp) 0.905/0 Fuel &Oil -0.41% Disposal 2.16% Other Operating Costs* 2.26% Subtotal Operations 5.77% Revenue Surplus net of Franchise Fees -0.25% Total Rate Adjustment 5.52% Y Includes depreciation, other vehicle -related costs, profit, general & administrative costs (e.g., public education, customer service, etc.) . This lower -than -applied -far adjustment is based on several adjustments to MSS' rate calculation (agreed upon by MSS management) as described in Section IV of the report and reflected in Table 5 and Attachment 2. Current Rate Proposed Rate Jurisdiction ($Imo,) ($/Mo.) - $ Difference San Rafael $29.56 $31.19 $1.63 Las Gallinas Valley Sanitary District $25.83 $27.26 $1.43 (Larkspur $32.47 $34.26 $1.79 (Ross $28.26 $29.82 $1.56 (Ross Valley Sanitary District $30.63 $32.32 $1.69 IcountyofMarin $30.06 $31.72 $1.66 inrfi Sps anvil FRecormnendations Upon receipt of the application, HF&H reviewed the documents for completeness and compliance with the procedures agreed upon by MSS and the Franchisors and verified the mathematical accuracy and logical consistency of the supporting schedules. Based on our review of the application, we determined that a net rate increase of 5.52% to rates is appropriate to compensate MSS for its projected expenses based on the agreed upon procedures. The following table summarizes the components of the rate adjustment: Table 2: Rate Adjustment Components 2014 Component Percentages Wages 0.86% Benefits (including workers comp) 0.905/0 Fuel &Oil -0.41% Disposal 2.16% Other Operating Costs* 2.26% Subtotal Operations 5.77% Revenue Surplus net of Franchise Fees -0.25% Total Rate Adjustment 5.52% Y Includes depreciation, other vehicle -related costs, profit, general & administrative costs (e.g., public education, customer service, etc.) . This lower -than -applied -far adjustment is based on several adjustments to MSS' rate calculation (agreed upon by MSS management) as described in Section IV of the report and reflected in Table 5 and Attachment 2. M ",LUIT, rJN N - � 1"; mmarfir of Significant€ g for 201 2014 Rate Adjustment Components (5.52%) Disposal — 2.16% As shown in Table 2 the disposal expense component contributed 2.16% to the recommended 5.52% rate increase for the current services. The increase of 2.16% ($474,022) is the result of two primary factors: 1. Current Year Protected Disposal Expense - An increase in the per ton disposal/processing fees (by the change in the applicable consumer price index), partially offset by the reduction in residential tonnage collected; and, 2. Prior Years' Disposal Reconciliation Positive Adiustments - The disposal expense reconciliation adjustment in accordance with the approved rate setting methodology. The adjustment reflects the correction of previous projections for both rates and tonnage based on data and expenses received at the time of the analysis. Table 3: Disposal Expense Variance Analysis Zrj3 � 20i4 Prior Y r COMM Year Rate 5t%g itaite Seiti0 - P'.rrcess. 'Process 'Differe.nce, Projected Disposal Expense included in Rates Prior Years' Disposal Reconciliation Positive Adjustments (2) Current Year Projected Dispos a I Expense(1) Other Operating Costs — 2.26% $ 3,013,383 $ 3,487,405 $ 474,022 $ 601,365 $ 144,460 $ (456,905) $ 3,614,748 $ 3,631,865 $ 17,117 The increase in Other Operating Costs contributed 2.26% to the recommended 5.52% rate increase for current services. The increase resulted from: 1. An increase in the JPA fees due to a per ton rate increase from the JPA); 2. An increase in depreciation as fully depreciated assets are replaced); 3. Focus group facilitation fees as part of the current rate study and 4. CPI increases in the base expenses in accordance with the approved rate setting methodology. Other Expenses and Revenue: Wages, Benefits, Fuel & Oil, and Revenue —1.1% Minor adjustments to the other expenses and revenues accounted for the balance of the 1.1% increase in the Current Services revenue requirement. Reserves for Future Diversion Programs During 2012, the Franchisors and MSS agreed to share the net revenues from the processing of recyclable materials collected from the Franchisors' customers, beginning with actual results in calendar year 2011. It was agreed that the net revenues would be contributed to a reserve to fund one-time costs of future diversion programs. As reflected in Table 4, the reserve amount decreased $85,154 to $147,553. The decrease in the reserve is primarily due to a decrease in commodity pricing that decreased the average recycling revenue per ton for 2012 by $18.13 per ton ($182.80 to $164.67). The processing costs have increased due to a combination of inflation and fixed costs being spread over fewer tons processed. Additionally, the 2013 reserve was updated to reflect the final approved operating ratio of 95% and the exclusion of HHW grant revenue (a reduction of $34,699). Table 4: Summary of Net Recyclable Revenue Reserve Net Addition- Based on (Reduction) Rate Year Financial Year to Reserve 2013 2011 $ 232,707 2014 2012 $ (85,154) Reserve Balance $ 147,553 The next update to the reserve will be completed as part of the 2015 rate application process and will be based upon 2013 calendar year results. Should the netosp itive value in the reserve exceed $250,000, then the excess shall be used to offset one-time costs related to diversion programs approved by a majority of the agencies comprising the Franchisors' Group. Should the net negative value in the reserve exceed a negative $250,000, the City or the Contractor may request a review of the actual costs and revenues of providing the service at which time the Franchisors Group and Contractor have agreed to meet and confer to determine a reasonable remedy to the Contractor. LF, H-C—CiiN We would like to express our appreciation to the MSS management and staff for their assistance. In addition, we express our appreciation to each of you for assistance and guidance during the course of the review. Should you have any questions, please call me at 925-977- 6961. Very truly yours, HF&H CONSULTANTS, LLC Marva M. Sheehan, CPA Vice President cc: Mr. Joe Garbarino Jr., Marin Sanitary Service Ms. Patricia Garbarino, Marin Sanitary Service Mr. Neil Roscoe, Marin Sanitary Service HF&H Client Files This Page Intentionally Left Blank TABLE OF CONTENTS SECTION I. BACKGROUND ......................................................................................... I Description of Current Services .............. ....... — ........ - .... ............. .......... ................ I SECTION 11. RATE REVIEW APPROACH ..................................................................... I Rate Adjustment Methodology ..................... ............ .............. ................ ...... 2 HF&H Scope of Review ... .................. .................... ...... ......... ...... 2 Lin0tations........................ ............................. ...................................... ....... 4 SECTION III. MSS' PROJECTION METHODOLOGY (INDEX YEAR) ........................... I Currentc., per . ......................... ................... ...... ...... ...... Operaition Iniprovein.ent Plan ........ Comrnercial Food to En-ergy (F2E)Progran,� ...... __ ........... . ........... ............... , 6 Pro"fit... _ . .. ............. __ .... ..... ................. I ........ ....... 7 l` -SSI Gaicur ated Rate Adjustrnent ....................... .............. ........ __ ... .......... 7 SECTION IV. PROPOSED ADJUSTMENTS .................................................................. I Adjustrne,nts to 2014 r--Toiectad EXPE,rlS�,'S (ANaent Operations.. ........................... 9 Adjustn-,,,ants to Frc4ectedl Revenue at CUrrent Rates ....... ........... ....... _ .................. . 10 Adjustanen"s to Nat Recyclable Revenue Reserve .................................................. 10 SECTION V. RATE ADJUSTMENT ................................................................................ I RateAdjustnient...................................................................................................... 13 Survey of Conilparable RateLs ............. ....... .......................... ...... . _ 12 ATTACHMENTS Attachment 1— Marin Sanitary Service Rate Application Summary Attachment 2 —Adjusted Rate Application Summary Attachment 3 — Rate Survey Attachment 4 — Chart of Residential 32 -Gallon Rates Attachment 5 — Chart of Commercial 3 Cubic Yard Rates - - - - - - -- - - - HF&H ConsWtants, LLC i November 27, 2013 This Page Intentionally Left Blank SECTION I. BACKGROUND Description of Current Services Marin Sanitary Service (MSS) provides franchised refuse, recyclable materials, and yard waste collection and processing services to the residents and businesses of the cities of San Rafael and Larkspur, the Town of Ross, the County of Marin, and the Las Gallinas Valley Sanitary District (LGVSD) collectively referred to as "Franchisors'. In addition, MSS and its non -franchised related entities (Marin Resource and Recovery Association (MRRA), the Marin Resource Recovery Center (MRRC), and Northern Recycling Compost — Zamora (Zamora), provide solid waste, recyclable materials, and yard waste collection and processing services to the residents and businesses of San Anselmo, the north area of the Ross Valley Sanitary District (RVSD), Fairfax, and San Quentin prison. MSS also provides non -franchised debris box, street sweeping, and document shredding services to residents and businesses throughout the County of Marin that contract for their services. MSS delivers refuse collected from waste generators within the Franchisors' service area to the MSS transfer station and then transports it to the Redwood Sanitary Landfill (Redwood) an unrelated party. MSS delivers recyclable materials to the non -franchised MRRA, where materials are processed and marketed. MSS delivers recyclable -rich loads of refuse (typically commercial) and separated yard waste loads (collected from residents), along with public self -haul loads to the non -franchised MRRC where recyclable materials are extracted from the waste stream, processed, and marketed. The MRRC delivers residual waste (the materials remaining after the recyclable materials are extracted) to the MSS transfer station. This residual waste is transferred to Redwood. Through a third party, MSS delivers yard waste to Zamora, located in Yolo County, for composting. In early 2010, the Franchisors approved a pilot food waste collection program allowing some residential customers to include food waste with their yard waste. The pilot was well received and with the approval of the Franchisors, MSS extended this service to its remaining customers beginning in March 2011. State regulations mandate that this comingled material (food waste and yard waste) is collected every week, therefore MSS expanded its yard waste service from bi-weekly to weekly collection from residential customers for the all of the Franchisors. This comingled material is collected in the same way as yard waste and delivered to Zamora for composting. In 2012, HF&H assisted the Franchisors in the negotiation of the revised Contractor's Revenue Requirement and Rate Adjustment methodology. Significant revisions included documentation of: 1) procedures that had been agreed to by MSS and the Franchisors over the years but not documented; 2) related -party fees and how they will be adjusted in the future; 3) additional reporting to be submitted with the rate adjustment applications; and, 4) procedures to develop a reserve for diversion programs by sharing in MRRA's net revenues (net recyclables processing revenues). HF&H� Consultants, LLC..._ -___...._...,.....w. -..._.................w..._...,., ._.�........._..._.. �............................................._.,..........,,,,,..................__ ..` ....M...,... November 27 2013 This page intentionally left blank ... The Rate Adjustment Methodology was developed in cooperation with MSS and approved by the Franchisors Group in 2001. In 2012, the Franchisors negotiated the revised the Contractor's Revenue Requirement and Rate Adjustment methodology with MSS. This revised method was used to determine 2014 recommended rates. The final projected 2013 year expenses from the 2013 detailed rate review are adjusted by changes in certain indices (e.g., CPI, employment cost index and the motor vehicle related index). Also, new projections of certain costs (e.g., disposal expense, fuel expense, workers' compensation expense, depreciation, interest expense, and fees imposed by the Marin County Hazardous and Solid Waste Management Joint Powers Authority (JPA)) and revenues (e.g., collection rate revenues) were made to determine the 2014 rates. Section III describes the methodology in more detail and findings from the application of the methodology to MSS' Application. &H Spcop e of R—Revi n?v The Franchisors engaged HF&H in August 2013 to perform a review of the Application in accordance with the Rate Adjustment Methodology (i.e., "agreed upon procedures"). The scope of this review is described in our engagement letter dated July 10, 2013. These procedures included the following activities: • Reviewing MSS management's projection of collection and non -collection revenues for the 12 - month periods ending December 31, 2013, and 2014. • Comparing the results to MSS's audited financial statements for rate year 2012 and year-to- date revenues and expenses for 2013 and request explanations for variances. • Reviewing MSS' calculation of the three year trend in subscription levels to determine an average surplus or shortfall in rate revenues. The average surplus or shortfall will be used in the determination of gross rate revenues. • Reviewing the appropriateness of MSS management's classification of expenses into the various expense categories. • Reviewing MSS management's calculation of rate year 2014 indexed expenses and compare them to the calculated expenses for 2013, established in our prior report, and the calculated changes to the indices. • Reviewing MSS management's projection of other expenses including: o Workers' Compensation will be reviewed by determining if the base wages, established as part of the prior review, were properly multiplied by the applicable premium rates from MSS' insurance carrier. c Disposal Expense for residential and solid waste tons transferred at MSS' transfer station will be reviewed by evaluating MSS' projection for 2014 disposal expense and MSS's HF&H Consultants, LLC 2 November 27 2013 adjustments for the previous projections for Rate Years 2012 and 2013 based on historical trends, management's plans and adjustment to the disposal rates; o Commercial Mixed Waste Processing Expense for commercial tons processed at MSS' processing facility will be reviewed by evaluating MSS' projection for 2014 commercial mixed waste processing and MSS' adjustments for the previous projections for Rate Years 2012 and 2013 based on historical trends and management's plans. We will verify that the processing rate per ton was calculated in accordance with the rate setting methodology. a Organics Processing Expense will be reviewed by evaluating MSS' projection for 2014 organics processing and MSS' adjustments for the previous projections for Rate Years 2012 and 2013 based on historical trends and management's plans. We will verify that the processing rate per ton was calculated in accordance with the rate setting methodology. o The Transfer/Transport Adjustment for tons not affiliated with the Franchisors Group transferred and transported through MSS' transfer station will be reviewed by evaluating MSS' tonnage projection for 2014 and MSS' adjustments for the previous tonnage projections for Rate Years 2012 and 2013 based on historical trends and management's plans. We will verify that the Transfer/Transport Fee per ton was calculated in accordance with the rate setting methodology. o Fuel Expense will be reviewed by evaluating MSS' 2014 projection and the adjustments for Rate Years 2012 and 2013. We will review MSS' calculations of the average price per gallon for fuel and verify the use of the proper projected gallons. o Depreciation/Lease Expense projections will be reviewed by evaluating the reasonableness of MSS management's estimates for these expenses based on historical trends and records and MSS management's plans. We will review MSS' adjustments to previous year projections, if any. o JPA Fees expense will be reviewed by reviewing documentation from the JPA and MSS projections. o The costs related to the Commercial Food to Energy (F2E) program will be reviewed by comparing MSS' prior year projections to actual costs and revised projections. • Reviewing MSS' calculations of the following Pass-through Expenses and Other Revenue: * Interest Expense will be reviewed based on MSS' actual interest from its loan amortization schedules for actual and projected capital expenditures. Franchise Fees will be reviewed based on each agency's appropriate rate and the forecasted values. Other Agency Fees will be reviewed based on fees established by each agency and forecasted values. o Other Revenues will be reviewed based on revenues received by MSS from related and third parties from the use of assets and services of employees where the costs are paid by the rates from the Franchisors Group ratepayers. Hi✓&H Consultants LLC 3 November 27, 2013 • Reviewing the MSS' calculation of the increase or decrease to the reserve for future diversion programs is in accordance with the procedures developed in 2012. • Reviewing the appropriateness of MSS management's allocation of revenues and expenses among the Franchisors and the other service areas, is in accordance with the procedures developed in 2012. • Meeting once with MSS management to review our adjustments to their calculated and projected revenues and expenses and their allocation among the Franchisors. We will obtain management's comments, review any additional material, and amend our adjustments, if necessary. • Compiling rates currently in effect in other municipalities in Marin County, as well as neighboring jurisdictions in other counties. • Preparing a written report that documents our findings and recommendations. Limitations Our review was substantially different in scope than an examination in accordance with Generally Accepted Auditing Standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. However, Chiao Smith McMullin + McGuire, An Accountancy Corporation, issued an unqualified opinion of MSS' 2012 financial statements. The unqualified opinion denotes that the financial statements of MSS were presented fairly in all material respects. There are related party transactions included in MSS' 2014 projections at rates that have been discussed and allowed by the Franchisors in the Rate Methodology Amendment as well as other methodology changes and therefore we did not review the underlying basis for such rates and changes. Examples of such rates are: 1) the transfer/transport rate for materials collected outside the Franchisors' area and credited back to the Franchisors; and, 2) the per -ton Zamora composting rate. Our conclusions are based in part on the review of MSS' projections of its financial results of operations. Actual results of operations will usually differ from projections because events and circumstances frequently do not occur as expected and the difference may be significant. ..H,F....H Consuitants,. LLC ..,..,.........._........... ........_,....u. _.... _r.,._,....�._4...,., ....... _-._.., ..... ,__.......,._...,.... ,......._... �.,.....,... ,a.......,..m.... _..._, . _ ..._........,..,....... November 27 2013 This page intentionally left blank SECTION III. MSS' PROJECTION METHODOLOGY (INDEX YEAR) In projecting 2014 costs, MSS included the direct costs for the Franchisors' Group garbage collection, the transfer station and recycling collection. Shop costs and administrative costs are allocated among the agencies served by MSS using truck route hours and an average of projected revenue, annual customer counts and department's percentage of wages, respectively. Management salaries are allocated to departments (MSS, MRRA, MRRC, etc.) based upon actual time spent by management related to that department. Expenses MSS projected its 2014 expenses (less non -allowable costs, such as donations, fines for penalties, certain attorney's fees, goodwill, etc.) for each expense category by: • Basing wage and salary expenses on 2013 expenses increased by the percentage change in the average annual San Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (Urban Wage Earners; 1982-1984=100) for June 2012 and 2013; • Basing benefits expense, excluding Workers' Compensation expense, on the projected 2013 benefits expense increased by the percentage change in the annual average Employment Cost Index — Benefits (Private Industry Workers; 1982-1984=100) for June 2012 and 2013; • Calculating Worker's Compensation expense by multiplying the 2013 wage projection (Base Year Revenue Requirement) by the applicable premium rates from the Contractor's insurance carrier for 2014; • Forecasting projected 2014 disposal expense using projected tons multiplied by the applicable disposal/processing rate for 2014, plus adjustments for 2012 actual disposal expenses, and estimated 2013 disposal expenses calculated based on actual 2012 results and year-to-date 2013 results; • Forecasting projected 2014 fuel and oil expense as follows: o Projected Year (2014) Fuel Expense - gallons established in the most recent detail year review (2013) at the average price per gallon based on actual year to date purchases; plus, o Current Year (2013) Expense Adjustment - gallons established in the most recent detail year review (2013) at the average price per gallon based on actual year to date purchases less the 2013 fuel expense established during the previous review; plus, U Revised Prior Year (2012) Expense Adjustment - projected gallons for 2012 at the average price per gallon for 2012 less the expense established during the previous review for 2012. • Forecasting projected 2014 equipment and vehicle maintenance expense was based on the projected maintenance expense for 2013 increased by the percentage change in the annual average Motor Vehicle Related Index (All Urban Consumers, U.S. City Average; 1982-1984=100) for June 2012 and 2013; HF&H Consultants, LLC 5 November 27, 2013 • Forecasting projected 2014 depreciation and lease expense based on MSS's actual depreciation expense, plus projected depreciation on anticipated purchases in the Rate Year (allocation of depreciation of trucks to the Franchisors Group and other operations was based on truck usage); • Forecasting projected 2014 JPA Fees based on tons collected for the Franchisors' Group by MSS for the period determined and rate established by the JPA; • Forecasting projected 2014 other operating / general and administrative expense based on projected 2013 expense increased by the percentage change in the annual average San Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (All Urban Wage Earners; 1982-1984=100) for June 2012 and 2013; and, • Forecasting projected 2014 interest expense based on MSS's actual interest from its loan amortization schedules for actual and projected capital adjusting 2014 for any projected asset purchases from the prior rate year which were not purchased in projected time period. Route Revenues In order to mitigate significant differences in the forecasted and actual revenues received, a three year trend in subscription levels is factored into the necessary rate adjustment. Actual revenue received through June 2013 and projections for the remainder of the year were multiplied by the average percentage surplus or shortfall rate revenue for the three most recently completed rate years. MSS calculated the three year average achievement percentage of 98.02%, meaning actual revenue received has averaged 98.02% of what was projected over the past three years. Operation L-aprovernent Plan In 2012, MSS contracted with R. J. Proto Consulting Group, Inc. (Proto) to assess MSS's collection operation and inform management of improvements and changes necessary for the company's success. MSS management reviewed the results of the report and has begun filling the seven personnel additions recommended by Proto. The personnel additions include: • Two Dispatchers; • Two Route Supervisors; • One Route Audit/Routing Manager; • One Franchise Contract Manager; and, • One Accounting Manager The personnel additions are expected to allow collection operations and general management to operate more effectively, resulting in planned route reductions over the next few years. MSS management has estimated a total of five routes will be eliminated. During the prior detailed cost review, it was determined that the net costs of the operations improvement plan over the next three- year period amounted to $1.2 million, ranging from $800,000 in 2013 to $25,000 in 2015. Because the costs differ significantly over the three-year period, it was agreed that the costs would be averaged; therefore, $397,000 was included in MSS' 2013 compensation and will continue through 2015. Carrin,Tmodi.fl Fcxad to 11 p IP During the prior detailed cost review, it was determined that the program costs for the commercial food waste collection program in conjunction with Central Marin Sanitation Agency (CMSA) will differ HF&H Consultants, LLC 6 November 27 2013 significantly over the next three years due to the projected rate of customer utilizing the new program and subsequent rate applications will be adjusted largely using indices and not a detailed review of the nets costs of the program. Therefore, it was agreed to average the costs equally over a three year period, beginning in 2013. $252,000 was included in the 2013 rate setting process and will continue until the next detailed cost review for the 2016 rates. Profit MSS calculated its 2014 profit by applying the agreed-upon 90.5% pre-tax operating ratio to its 2014 total projected expenses that are eligible for profit. MSS'Calculated Rate Adjustivent MSS calculated the 2014 Rate Adjustment to be 8.98%. The Rate Adjustment Factor equals the Total Contractor's Revenue Requirement for the coming Rate Year divided by the Gross Rate Revenues. Gross Rate Revenues mean the statements of charges for services rendered by Contractor, to owners or occupants of property, including residential and commercial premises, for the collection of materials pursuant to the Agreement, net of a reasonable allowance for uncollectible accounts, and adjusted for the calculated three year revenue experience. HF&hi Consultants, ~.LLC ....__......._.._2._..._..._..w..............._....w._..,7__.,._....,__...._......_......,._........_.��_..�,..........,...........,._.,..._.._a... �w.....�._. November 27, 2013 This page intentionally left blank SECTION IV. PROPOSED ADJUSTMENTS This section provides a summary of the HF&H recommended adjusted revenue requirement. HF&H's recommended projections for MSS' operations are shown in Table 5 below and our recommended adjustments to MSS' projections are discussed in more detail following the table. Table 5: Summary of Adjustments Expenses: Current MSS Operations 1. Wages 2 Benefits 3 Disposal Fees 4 Fuel & Oil 5 Maintenance Expense C Depreciation/Leases ;3 Other Operating/G&A B Total Operating Expenses 9 Operating Profit 10 Interest Expense 1.1 Total Expenses for Current Operations 11' Revenue Requirement for Current Services Proiected Revenue (at current rates) :@,` Route Revenues 14 Less: Franchise Fees a.i Less: Street Sweeping 1,f Less: Refuse Vehicle Impact Fee 1.7 Add: Non -Regulated Revenues MSS Recommended HF&H Adjusted Application Adjustments Application $ 7,124,527 $ - $ 7,124,527 3,775,406 (133,441) 3,641,965 4,048,572 (561,167) 3,487,405 1,056,719 (80,891) 975,828 1,405,170 1,405,170 1,711,455 - 1,711,455 3,110,793 60,505 3,171,298 22,232,642 (714,994) 21,517,648 2,333,812 (75,055) 2,258,757 318,375 - 318,375 24,884,829 (790,049) 24,094,780 $ 24,884,829 $ (790,049) $ 24,094,780 26,409,276 26,409,276 (2,607,328) - (2,607,328) (72,000) - (72,000) (896,302) - (896,302) 18 Net Revenues (at current rates) 22,833,646 - 22,833,646 2? Total Surplus/ (Deficit) (Line 18 - Line 12) $ (2,051,183) $ 790,049 $ (1,261,134) 0 Rate Impact (-Line 19 =Line 18) 8.98% 5.52% HF&H Consultants, LLC 8 November 27 2013 Wages HF&H reviewed and does not recommend any adjustments to MSS' projected 2014 Wages expense (Table 5, Line 1). Benefits HF&H recommends reducing benefits by a net of $133,441 due to the following: • Reduce benefits, other than Workers' Compensation, as the increase in such benefits, was limited to the annual average increase in the Employment Cost Index of 2.08%. MSS calculated several of the benefit items using rates other than the rate prescribed by the agreed-upon Rate Index methodology; and, • Increase Workers' Compensation by $9,329 due to allocation changes not reflected by MSS in its application. Disposal Fees HF&H recommends reducing MSS' projected disposal fees by $561,167 (Table 5, Line 3). In the 2013 rate setting process, MSS represented the commercial loads were highly contaminated therefore; yielding very little material that could actually be recycled. Rates were set based on the lower tipping fee at the transfer station. In 2013, MSS reviewed the composition of the commercial solid waste tonnage and began redirecting an increased amount to MRRC. MRRC's processing fee is approximately $30 per ton higher than the transfer station tip fee. HF&H is proposing adjustments to reflect "as if' the material was delivered to the transfer station. The adjustment includes a decrease of $276,846 for 2013 and $284,321 for 2014. We recommend MSS determine the available diversion from the commercial material and present to the Franchisors MRRC as an alternative processing facility, with the an estimated additional cost per diverted ton. Fuel & Oil HF&H recommends decreasing MSS' projected Fuel & Oil costs by $80,891 (Table 5, Line 4) due an updated projected average per gallon fuel price. MSS projected the 2014 fuel cost based on the actual year to date average per gallon for purchases through August 8, 2013 at $3.836, while the average per gallon fuel price based on the trend for the most recent three months of purchases in 2013 was $3.772, resulting in an overstatement of 2014 fuel cost of $23,922. MSS adjusted 2013 fuel expense using the actual average per gallon price for the 2013 year to date purchases at $3.932, while the average per gallon price using a projections through August 8, 2013 of $3.732, resulting in an overstatement of the fuel cost adjustment for 2013 of $56,969. Maintenance Expense HF&H reviewed and does not recommend any adjustments to MSS' projected 2014 Maintenance Expense (Table 5, Line 5). H..F&H Consultants, LLC 9 November, .., m...,. __....._.... 27, 201313 Depreciation/ Leases HF&H reviewed and does not recommend any adjustments to MSS' projected 2014 Depreciation/Leases expense (Table 5, Line 6). Other Operating/G&A HF&H recommends increasing MSS' projected Other Operating / G&A by $60,505 to reflect the consulting fees associated with the development of a new sustainable rate structure. The Franchisors' Group understands the importance of community acceptance of any new rate structure. The consultant's primary task will be assisting with the development of and facilitating focus groups consisting of members of the community. (Table 5, Line 7). Operating Profit HF&H recommends reducing MSS' projected operating profit by $75,055 (Table 5, Line 9), resulting from the decreases in operating costs described above. Interest Expense Due to offsetting adjustments in MSS's calculations, no adjustment is recommended for interest expense (Table 5, Line 10). djusti seri s to Projeeted Reveinueat Current Rates HF&H reviewed and does not recommend any adjustments to MSS' projected revenue at current rates (Table 5, Line 18). Adjustments Netecydabll- 9.'klewn tie Reserve e During 2012, the Franchisors and MSS agreed to share the net revenues from the processing of recyclable materials collected from the Franchisors' customers, beginning with actual results in calendar year 2011. It was agreed that the net revenues would be contributed to a reserve to fund one-time costs of future diversion programs. As reflected in Table 6, the reserve amount decreased $85,154 to $147,553. The decrease in the reserve is primarily due to a decrease in commodity pricing that decreased the average recycling revenue per ton for 2012 by $18.13 per ton ($182.80 to $164.67). The processing costs have increased due to a combination of inflation and fixed costs being spread over fewer tons processed. Additionally, the 2013 reserve was updated to reflect the final approved operating ratio of 95% and the exclusion of HHW grant revenue (a reduction of $34,699). Table 6: Summary of Net Recyclable Revenue Reserve Net Addition Based on (Re=duction) hate Year Financial Year . to Reserve 2013 2014 Reserve Balance 2011 $ 232,707 2012 $ (85,154) $ 147,553 HF&H Consultants, LLC 10 November 27, 2013 This page intentionally left blank SECTION V. RATE ADJUSTMENT Based on a revenue requirement of $24,094,780 (Table 5, Line 12) and projected net revenues of $22,833,646 (Table 5, Line 18) for the calendar year 2013, resulting from our recommended adjustments to MSS' application, a 5.52% rate adjustment has been calculated, effective January 1, 2013. This rate increase of 5.52%, results primarily from: e An overall net increase of 5.77% in operating costs for current services, primarily from: o Disposal Adjustment - 2.16% ($474,022) is the result of two primary factors: 1. Current Year Projected Disposal Expense - An increase in the per ton disposal/processing fees (by the change in the applicable consumer price index), partially offset by the reduction in residential tonnage collected; and, 2. Prior Years' Disposal Reconciliation Positive Adiustments - The disposal expense reconciliation adjustment in accordance with the approved rate setting methodology. The adjustment reflects the correction of previous projections for both rates and tonnage based on data and expenses received at the time of the analysis. Table 7: Disposal Expense Variance Analysis Current Year Projected Disposal Expense (1) $ 3,614,748 $ 3,631,865 $ 17,117 Prior Years' Disposal Reconcilation Adjustment (2) $ (601,365) $ (144,460) $ 456,905 Net Disposal Expensein Revenue Requirement $ 3,013,383 $ 3,487,405 $ 474,022 e Other Operating Costs— 2.26% is the result of the following factors: 1. An increase in the JPA fees due to a per ton rate increase from the JPA( $88,000); 2. An increase in depreciation as fully depreciated assets are replaced ($85,000); 3. Focus group facilitation fees as part of the current rate study ($60,000); and 4. CPI increases in the base expenses in accordance with the approved rate setting methodology. o Other Expenses — 1.1% is the result of minor adjustments to the other expenses and revenues accounts. The following table shows the components of the rate adjustment: .Hi=&H Consultants._........ -_.....f LLC,...w.,�._.._......._........,......,..._m....�..._.,. November 27��....._....�.,...._,..,..._-........r....._.�.._........,.,......._..._.v....,.._.......�.............,.r..w.....,w..� , 2013 Table 8: Rate Adjustment Components 2014 Component Percentages Wages 0.86% Benefits (including workers comp) 0.90% Fuel & Oil -0.41% Disposal 2.16% Other Operating Costs* 2.26% Subtotal Operations 5.77% Revenue Surplus net of Franchise Fees -0.25% Total Rate Adjustment 5.52% Survey of Compmrable Rates Attachment 3 shows the results of HF&H's survey of solid waste rates as of August 2013 for jurisdictions located throughout the Bay Area. For the purpose of comparing the Franchisors' rates to other jurisdictions, we have applied the recommended 5.52% rate increase to the current Franchisors rates. The Franchisors' residential rates for a 32 -gallon container (the most frequent residential service level) range from $27.26 (LGVSD) to $34.26 (Larkspur). The survey shows the Franchisors' average residential rate for 32 -gallon service ($31.10) is in the low range compared to the other Marin County jurisdictions. Of the ten Marin County jurisdictions, eight of the jurisdictions' 32 -gallon container rates are higher than the Franchisors' average and two jurisdictions are lower. Attachment 4 graphically compares the Franchisors' residential rates for a 32 -gallon container to one another as well as to the average of Marin County rates for similar service. The Franchisors' commercial rates for a 3 cubic yard bin serviced one time per week range from $382.99 (Ross) to $436.86 (Larkspur). The average rate for the Franchisors is $407.90, which is in the lower range compared to the other five Marin County jurisdictions that have this level of service. Three jurisdictions have higher rates and two jurisdictions have lower rates. Attachment 5 compares the Franchisors' commercial rates for a 3 cubic yard bin serviced one time per week to the average Marin County rate and all other jurisdictions' average rate for similar service levels. While the recommended rates compare favorably to those surveyed, we caution the Franchisors that this survey is presented as an indication of the reasonableness of the resulting rates. They should not draw conclusions from this information because rate comparisons are intrinsically difficult and often misleading. This difficulty results from differences in issues such as: 1. The services provided; 2. The terrain in which the service is performed; 3. Disposal costs; 4. Rate structures; and, 5. Governmental fees (e.g., franchise fees, vehicle impact fees, etc). — .. ......._.... _...., ,......M_..........._...,,...... _._..._ ..................__.-__............,.,. ,......,_.............. HF Consultants, LLC 12.....,.Nov 27._...., ....... il _., ember 2013 Bay Area Rate Survey Res. Sinale-Family Commercial lYD Bin lYD Bin 3YD Bin 3YD Bin Jurisdiction County 30-35Gal. 60-64Gal. 90-96Gal. ix/week 3x/week lx/week 3x/week City of Alameda Alameda $ 35.00 $ 57.51 $ 80.32 $ 133.33 $ 407.97 $ 399.99 $ 1,223.93 - ^ _ _ City of Albany_ _ _ _ _ _Alameda $ 39.61 $ 66.46 $ 97.30 $ 157.84 $ 473.52 $ 473.52 $ 1,420,56 City of Berkeley (District 1 & 2) _Alameda_ $ _29.62 $ _59.21 $ _88.78 $ 143.42 $ 404.11 $ 415.12 $ 1,178.96 City of Berkeley (District 3)" _. Alameda $ 31.14 $ 62.25 $ 93.36 $ 143.42 $ 404.11 $ 415.12 $ 1,178.96_ Cityof Dublin _ _ ^ ^ _ Alameda _ $ 20.31 $ 37.31 $ 54.30 $ 98.54 $ 344.66 $ 295.62 $ 935.90 City of Emeryville Alameda 17.44 $ 34.86 $ 52.30 $ 103.82 $ 311.46 $ 311.46 $ 934.38 ^ , ^ ^ City of Fremont ^ ^ ^ ^ Alameda _$ $ 28.17 $ 30.84 $ 45.27 $ 80.45 $ 231.41 $ 180.84 $ 532.57 City of Livermore _ _ ^ _Alameda_ $ _27.51 $ 53.34 $ 86.21 $ 116.72 $ 364.16 $ 350.16 $ 1,115.62 Cityof Newark _ _ _ _ _ Alameda ^ $ 27.72 $ 49.09 $ 70.44 $ 112.31 $ 350.41 $ 297.13 $ _810.32_ Cityof Oakland_ Alameda 29.30 $ 63.89 $ 98.44 $ 137.54 $ 437.75 $ 360.62 $ 1,136.70 _ _ _ City of Piedmonts ^ Alameda _$ $ 51.85 $ 60.57 $ 70.97 $ 162.69 $ 458.61 _ _NA_ _ _ NA _ City of Pleasanton' _Alameda_ _$ _30.59 _ N/A N/A $ 145.51 $ 380.81 $ 415.54 $ 1,12144 City of San_ Leandro_ _Alameda_ _ $ _25.22 $ _4198 $+58,72 $ 110.58 $ 334.30 $ 334.30 $'1,002.90 Cityof Union City ^ ^ ^ ^ Alameda $ 42,29 $ 72.71 $ 103.10 $ 125.62 $ 346.96 $ 329.19 $ 897.15_ Castro Valley Sanitary District _ Alameda ^ $ 35.93 $ 62.40 $ 88.91 $ 254.62 $ 763.96 $ 677.64 $ 1,899.26_ Oro Loma Sanitary District (L1)' Alameda ^ $ 20.04_$ 35.53 $ 50.97_$ 101.05 $ 262.66 $_269.16 $ 735.99 Oro Loma Sanitary District (L2)' Alameda ^^$ 15.44 $ 30.93 546.37 $ 101.05 $ 262.66 $ 269.16 $ 735.99 _ Oro Loma Sanitary District (1.3) ... Alameda _ $ 22.51 $ 40.38 $ 58.29 $ 116.87 $ 303.77 $ 311.30 $ 872.01 Cityof Richmond_ ^ Contra Costa $ 31.12 $ 59.37 $ 88.43 $ 204.60 $ 517,16 $ 463.94 $ 1,267.59 City of San Pablo ^ ^ ^ ^ Contra Costa $ ^29.02 $ 55.23 $ ^82.28 $ 207.46 $ 527.33 $ 483.14 $ 1,327.12 City of EI Cerrito°' Contra Costa $ _39.99 j ^79.99 N/A $ 241.27 $ 665.15 N/A ^ _N/A City of Hercules ^ ^ ^ _ _ _ Contra Costa _ $ 32.76 . $ ^57.77 ... $ 83.52 $ _ _ 2`88 _ 21 $ 562.02 $ ^ ^ 513.50 $ _., . 1,407.28 _ _ ^ City of Pinole _ ^ ^ ^ _Contra Costa_ $ 31.82 $ 56.58_ $ 82.08 L 237,58 $ 599.55 $ 546.86 $ 1_494.67 _ Unincorp.-West Contra Costa ^ Contra Costa $ 31.01 $ 59.42 $ 88.50 $ 203.03 $ 514.88 $ 461.99 $ 11,264.41_ Town of Fairfax _ _ .-- Marin _ $ 2989_ $ 53.5.8 $_87,27 $ 145.65 _ $ 345.Q0 $ 34_1.50 $_ 893.85 RVSD-N {Oak Mavor). tbtarin_ _ $ 33.05 $ 66,007 X68.96 $ 99.003 $ 177.226 $ 531.85 $ 53185 S 1,595.55 f.. ... RVSD-N SIe Hallow) ^ ... _ Marin, ^ $ 34.550 ^31.95 $ ^53.94 $ 103.. .37 $ ^95.92 7.2 _176 $ S31.85 $ ^ 531.85 $ -1,595,55 Town of San Ansefm_o' _ Marin ^ $ $ $ _ N/A N/A $ 524.29 $ 1,572`98 ^ ... .,. City of 9efvederes _ Marin _ ^ $ 38.91 $ 61.60 $39.33_ $192.56 $531.92 _ _NJA _ NJA ^ - ,..- - CiMtyofNovato°^_ ^ M argin _.Y-- 5 18.22 $ 36A3 $ 54.66 _ N/A_ _ N/A_ $ 2-37-.4- 5 $_ 58838 ^ GYy of Sausa3ito`''3^^ ^ ^ ^ Mari.- ^^ $ 3690 $ 73.80 ^67 $ 110.70 $ _ 145,91 $ 437.73 » ,... NJA _ T^... N/A• T-4 of_7ibuwron'_ _ ^ »,. Merino $ 36,95 $ 27 $ 97.008 $ 175.79 $ 47950 .. A ..., NJA N/A Tawe of Corte Madera{_ _Marin $_u31,15 $_^62.43_ $_93.80 $- T45.73 $ 398.23 ^ NJA ^ ^_ _ _ C{ty of Mill VallW ^_ ^ -All _ _ arm ^ _ $ 38.65 $ 64.55_ $ 90.40 $-171.25 $ - 46086 NJA N//A, _ City of- Rafael _ Marin _ _ $ 31.19 5 62.39 $ 93.58 $ 201,33 $ 615.56 $ 385.29 $ 1_093_60 Las Gallinas _County _ ^Marin_ ^ ... $ _27.26 $ _54.51 $ _81.77 $ 195.18 $ 586.07 $ 394.94 $ _1,102.32 Cityof Larkspur °^ Marin ^ $ ^34.26 $ 68.54 $ 102.80 $ 217.53 $ 652.37 $ 436.86 $ 1,145.47 ^ ^ _ Town of Ross _ _ _ _ Mario_ $ 29.82 ^32.32 $ _59.65 $ _89.47 _ N/A _ N/A _$ 382.99 $ _1,148.82 County(RVSD-S)^ Marin ^^ $ $ 67.22 $ 104.88 $ 272.68 $ 691.31 $ 421.70 $ 1_107.36 County - Marin Franchisors' Group Marin $ 31.72 $ 65.99 $ 102.96 $ 211.67 $ 635.01 $ 425.62 $ 1_111.39 City of Campbell' Santa Clara $ _23.50 $ ^47.00 $ ^70.51 $ 117.66 $ 356.31 $ 235.31 $ ^ 712.63 _ ^ ^ ^ City of Cupertino' _ ._ Santa Clara _ $ ^22.32 _ $ 44.64 _ _ $ 66.97 $ _ 130.19 ^ ._ $ 390.59 $ _.. _ 208.31 $ _ _ ^ 624.92 ^ _ .... City of Los Altos Santa Clara $ 29.20 $ ^58.40 $ 87.60 $ 117.50 $ 35 2.5 2 $ 352.52 $ _1,057.57 _ . ^ ^ City of Monte Sereno' ^ ^ _ Santa Clara _ $ 27.67 $ 5535 $ S3.02 $ 163.21 $ 494.35 $ 326.42 $ 988.70 City of Mountain View ^ ^ Santa Clara _ $ 22.60 $ 45.20 $ 67.80 $ °9.20 $ 337.10 $ 297.25 $ 9331.90 City of Palo Alto _ _ ^ ^ Santa Clara _ $ 31.64 $ 6784 $ 10176 $ 170.04 $ 523.20 $ 416.38 $ 1_3222.17 City of San lose z _ Santa Clara $ ^29.95 $ 59.90 ^35.73 $ ^89.85 $ 152.42 $ 436.46 $ 212,25 $ ^ 608.30 ^ _ ^ Cityof Santa Clara Santa Clara_ $ _24.31 _$ ^40..5 $ ...47 5 $ _73.53 S 21275 $ 205.94 $ ^ 584.50 _ ^ ^ ^ Cityof5unnyvale Santa Clara $ 32.91 $ 47.4; $ '1.35 $ 3`5.53 $ 30.85 5 992.61 City ofSrratoga' ^ ^ __ _Santa C6ara ^ :4..71 45.43 7414 $_ 162.50 $ 492:12 ;_ 323R? $ _:24.84 'ciwn vl Lr'ARtG tiihs _ ^ ^ onto Clara ".7.41 $ 74.1 $ 112.2I $ 9:iA $ ISO ::3 _ 146.51 $ 340.9:) ,Yawn of U s G,,,tcs^ Sar,ta _farz y 27.8 «.62 , 68,44 1, ;32,, 40202 y 205.42 ,'Cfl.03. Nann Frar:r.".Isar:,' A,erage $ 31.10 E:,xC $ 9591 # $ 21'3.6ca $ t,Zr,06 4 $ 4)7.4C' S 1, 11r".16 4 NlarirYCountyBAye-rage - $ 32.94 $ 62.33 $ 3Z.1i _ $ 166.43 $ 464.031 $ 433.3,9 $ 1,249,42 A.' C;t vera Sf, CC $ 55.97 $ 81,6E $ 5' 2 S 443At $ 366.53 $ 1,05 -'Al' 1 cu yt' ccrtamers not aval'able. Rates refieCen here a,c for 1.5 w. yds r'`.t'; Y.as wet/ory commercial co{iEciion rare; arc, for -t comm arc at m ter.als 'Largest residentia, can .5 45 8aitcr ` Sma ;est Bin rs 2 yd. ar+eest ccmme•'cla' bm is 2 y'a-ds. `Ore ,..kbic yard bir. no longer offer •aci to new,:usi :me:;. Rate for 1, 2, 3 3 30 gal:on Cans it i- of 60 and PCv ga.lan Be(iCelF',,'' S 'D;:,tr;ft 3 pays c lu e S,rchargc rate= { CLSD 1.2 d, t, Irk doet,n't omv:Ce !'erv!rec tG resid,r ts. ReCycFrg, rates ar?.n(.;dded •n rafe fur L. & L2. Esther Beirne From: gailann07@comcast.net Sent: Monday, December 16, 2013 1:49 PM To: Esther Beirne Subject: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 12//16/13 Dear City Council: I am ill with a virus and cannot attend the city council meeting tonight but, if need prevails, I can provide you with my MSS bill and a comparable one from the Novato Disposal Service, should you request same. I am seeking denial of the Marin Sanitary Service rate increase you will be voting on tonight, (despite the fact that City Council routinely votes in favor of the MSS requests and despite the fact that some of us have requested you to vote for denial in the past), for the following reasons: 1. As a resident of San Rafael, I am billed over $300/vear for their services. The City of Novato (a comparable community to San Rafael) charges only $200/vear for more services for an identical clientele. San Rafael ratepayers receive far fewer benefits than other Bay Area communities and pay far higher rates for fewer benefits. 2. MSS offers less services and less cans than other communities for 33% more fees. a) Novato Disposal Service provides larger cans, including multiple qreen cans for those that require them and at lesser rates than MSS. b) Novato provides FOUR annual curbside pickups for furniture, appliances, mattresses, or up to seven extra bags for NO EXTRA FEE. In San Rafael's higher density neighborhoods, such as Gerstle Park, for example, residents speak of nighttime "deposits" of mattresses and appliances on neighborhood streets because there are no free pickup services by MSS. 3. c) Novato Disposal offers all neighborhoods one week/vear where they can put out at the curb appliances or large bulky items at NO EXTRA fee! 4. d) MSS has many plastics they still "can't find a market for", yet Novato Disposal takes all manner of plastics, including riqid plastics (such as plastic trays, tubs and furniture). At most, I only use the pickup services one to two times per month. I, and many others, practice recycling, sustainable purchasing and conservation. Four plus pickups a month only teach people to not consider the packaging their food and products come in and to buy more. Where is my reduced rate for less MSS pickups/services? Sometimes I don't set out my green can for several weeks, the recycling cans maybe only every two or three weeks or more. There seems to be no consideration for customers with less waste for rate- paying purposes. 4. Lastly, in these last few years of the economic woes, how many businesses have given ANNUAL wage increases of any kind, much less as much as 5% increases? How can these rates be justified? Even the newer compost venture MSS has embarked upon sells their product and gives us no rate reductions for such revenue generated. As the notice for this agenda item is posted in the papers only hours before you take a vote, there are alot of ratepayers that are unaware of this annual rate -hiking event until AFTER the vote. As an involved citizen of San Rafael, I know many, many homeowners who are in agreement with me that these rates are too high, should not be increased, but definitely should be decreased! Some of you Council members may have no problem with paying $300+/year for these services. However, I ask you to consider the many others who do have a problem with these rates. We are called single -income, fixed income, or just plain low-income ratepayers. I fit into at least one of the above catagories. Please remember that these groups also are the people who consider voting/not voting for you when you run for office. To conclude, I ask you to consider the implications of your vote and to remember "the little guy" who is forced to pay rates that are at least 33% higher than our sister city only ten miles away from us. Perhaps we need some competitive bids to make MSS provide more for less. (Novato Disposal at www.unicvcler.com, fyi.) Sincerely, Gail Grasso Marin Independent Journal 150 Alameda del Prado PO Box 6150 Novato, California 94948-1535 (415) 382-7335 legals@marinij.com SAN RAFAEL,CITY OF PO BOX 151560/CITY CLERK, DEPT OF PUBLIC WORKS,1400 FIFTH AVE SAN RAFAEL CA 94915-1560 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Marin FILE NO. 0005045647 I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years, and not a party to or interested in the above matter. I am the principal clerk of the printer of the MARIN INDEPENDENT JOURNAL, a newspaper of general circulation, printed and published daily in the County of Marin, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of Marin, State of California, under date of FEBRUARY 7, 1955, CASE NUMBER 25566; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: 121612013, 121912013 I certify (or declare) under the penalty of perjury that the foregoing is true and correct. Dated this 9th day of December, 2013. r Signature PROOF OF PUBLICATION Legal No. 0005045647 CITY OF SAN RAFAM NOTICE OF PUBLIC NEARING The Cab C"Incil a c 1 Inq Rafael will howPURPO • Public Hear6app To conskler a request by Main Sanitary Serv- ice frn a rate Increase for refuse cotiecttoo and amertdtrn�ggservices agreement seatition ng mm�csximu`ran rates far t#te year 2014. DATE/TIMEiPL AC& Mondayy. December 16.2013. at 7:00 p.m. Cly Hail council Chambers. 1404 Fifth Avenue, San Rafael WHAT WILL NAPPM You may comment on the proposed Resolution. The City Council will consider all public testi• many, and will thea] decide whether to approve the Resolution. IF YOU CANNOT ATTEIRh Youma send a letter to Esther C. Beirne, City Clerk, City of San Rafael, P.O. Bax 151560, San Rafael, C 9015-1550. You may also hand de- liver a letter to the City Clerk prior to the meeting. FOR MORE 11WO MATMi You may contact Cat1i Bytof, Sustainability, and Volunteer Program ordinator. at (41S),489 - 390T. hours are Monday through Friday, S:30 a.m. to 5:0D p.m. SAN RAFA€t C#TY COUNCIL /s/ ESTH£R C. SIIRNE EsTt*R C. E&NE. City Clerk No.14E8 December 6. 2013, December 9. 2013 CITY OF SAN RAFAEL NOTICE OF PUBLIC HEARING The City Council of the City of San Rafael will hold a public hearing: PURPOSE: Public Hearing: To consider a request by Marin Sanitary Service for a rate increase for refuse collection and recycling services and adoption of a Resolution amending the agreement setting maximum rates for the year 2014. DATE/TIME/PLACE: Monday, December 16, 2013, at 7:00 p.m. City Hall Council Chambers, 1400 Fifth Avenue, San Rafael WHAT WILL HAPPEN: You may comment on the proposed Resolution. The City Council will consider all public testimony and will then decide whether to approve the Resolution. IF YOU CANNOT ATTEND: You may send a letter to Esther C. Beirne, City Clerk, City of San Rafael, P.O. Box 151560, San Rafael, CA 94915-1560. You may also hand deliver a letter to the City Clerk prior to the meeting. FOR MORE INFORMATION: You may contact Cory Bytof, Sustainability and Volunteer Program Coordinator, at (415) 485-3407. Office hours are Monday through Friday, 8:30 a.m. to 5:00 p.m. SAN RAFAEL CITY COUNCIL is/ ESTI- ER C. BEIRNE ESTHER C. BEIRNE, City Clerk (Please publish in the Marin Independent Journal on Friday. , December 6, 2013 and �Iondav, December 9, 2013) CITY OF SAN RAFAEL ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. 5. b DATE OF MEETING: 12/16/2013 FROM: Cory Bvtof DEPARTMENT: for Citv Manager's Office DATE: 12/9/2013 TITLE OF DOCUMENT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ESTABLISHING MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE FOR REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES, TO BE EFFECTIVE JANUARY 1, 2014 Dep3artm�nt Head ( 'gn,4ure) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: City Manager (signature) City Attorney (signature) i NOT APPROVED Esther Beirne From: gailann07@comcast,net Sent: Monday, December 16, 2013 1:49 PM To: Esther Beirne Subject: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 12//16/13 Dear City Council: I am ill with a virus and cannot attend the city council meeting tonight but, if need prevails, I can provide you with my MSS bill and a comparable one from the Novato Disposal Service, should you request same. I am seeking denial of the Marin Sanitary Service rate increase you will be voting on tonight, (despite the fact that City Council routinely, votes in favor of the MSS requests and despite the fact that some of us have requested you to vote for denial in the past), for the following reasons: 1. As a resident of San Rafael, I am billed over $300/vear for their services. The City of Novato (a comparable community to San Rafael) charges only $200/year for more services for an identical clientele. San Rafael ratepayers receive far fewer benefits than other Bay Area communities and pay far higher rates for fewer benefits. 2. MSS offers less services and less cans than other communities for 33% more fees. a) Novato Disposal Service provides larger cans, including multiple preen cans for those that require them and at lesser rates than MSS. b) Novato provides FOUR annual curbside pickups for furniture, appliances, mattresses, or up to seven extra bags for NO EXTRA FEE. In San Rafael's higher density neighborhoods, such as Gerstle Park, for example, residents speak of nighttime "deposits" of mattresses and appliances on neighborhood streets because there are no free pickup services by MSS. 3. c) Novato Disposal offers all neighborhoods one week/near where they can put out at the curb appliances or large bulky items at NO EXTRA fee! 4. d) MSS has many plastics they still "can't find a market for", yet Novato Disposal takes all manner of plastics, including _rigid Lplastics (such as plastic trays, tubs and furniture). At most, I only use the pickup services one to two times per month. 1, and many others, practice recycling, sustainable purchasing and conservation. Four plus pickups a month only teach people to not consider the packaging their food and products come in and to buy more. Where is my reduced rate for less MSS pickups/services? Sometimes I don't set out my green can for several weeks, the recycling cans maybe only every two or three weeks or more. There seems to be no consideration for customers with less waste for rate- paying purposes, 4. Lastly, in these last few years of the economic woes, how many businesses have given ANNUAL wage increases of any kind, much less as much as 5% increases? How can these rates be justified? Even the newer compost venture MSS has embarked upon sells their product and gives us no rate reductions for such revenue generated. As the notice for this agenda item is posted in the papers only hours before you take a vote, there are alot of ratepayers that are unaware of this annual rate -hiking event until AFTER the vote. As an involved citizen of San Rafael, I know many, many homeowners who are in agreement with me that these rates are too high, should not be increased, but definitely should be decreased! Some of you Council members may have no problem with paying $300+/year for these services. However, I ask you to consider the many others who do have a problem with these rates. We are called single -income, fixed income, or just plain low-income ratepayers. I fit into at least one of the above catagories. Please remember that these groups also are the people who consider voting/not voting for you when you run for office. To conclude, I ask you to consider the implications of your vote and to remember "the little guy" who is forced to pay rates that are at least 33% higher than our sister city only ten miles away from us. Perhaps we need some competitive bids to make MSS provide more for less. (Novato Disposal at www.unicvcler.com, fyi.) Sincerely, Gail Grasso "1116113 Damon Connally Law Mail - FW: Marin Sanitary service annual rate hikes (despite no increase in seNces)--to San Rafael City Council members for 121/16/13 FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 12//16/13 Esther Beirne <Esther. B eirne@cityofs anrafael. org> Mon, Dec 16, 2013 at 2:35 PM To: Cory Bytof <Cory. Bytof@cityofsanrafael. org> Cc: Nancy Mackie <Nancy. Mack le@cityofs an rafael, org>, Jim Schutz <Jim. Schutz@cityofsanrafael.org>, Lisa Goldfien <Lisa. Goldfien@cityofsanrafael.org>, rob@epsteinlawyer.com Please see below From: gailann07@comcast.net [mai1to:gaiIann07@comcast.net] Sent: Monday, December 16, 2013 1:49 PM To: Esther Beirne Subject: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 12//16113 Dear City Council: I am ill with a virus and cannot attend the city council meeting tonight but, if need prevails, I can provide you with my MSS bill and a comparable one from the Novato Disposal Service, should you request same. I am seeking denial of the Marin Sanitary Service rate increase you will be voting on tonight, (despite the fact that City Council routinely votes in favor of the MSS requests and despite the fact that some of us have requested you to vote for denial in the past), for the following reasons: 1. As a resident of San Rafael, I am billed over $300/vear for their services. The City of Novato (a comparable community to San Rafael) charges only $200/vear for more services for an identical clientele. San Rafael ratepayers receive far fewer benefits than other Bay Area communities and pay far hi her rates for fewer benefits. 2. MSS offers less services and less cans than other communities for 33% more fees. a) No\rato Disposal Service provides larger cans, including multiple areen cans for those that require them and at lesser rates than MSS. b) Novato provides FOUR annual curbside pickups for furniture, appliances, mattresses, or up to seven extra bags for NO EXTRA FEE, In San Rafael's higher density neighborhoods, such as Gerstle Park, for example, residents speak of nighttime "deposits" of mattresses and appliances on neighborhood streets because there are no free pickup services by MSS. httos:1fn)aiJ.000Q le.com'niailILX01?ui=2&il(=85ab123075&vifew--pt&sr,,arch=inboy,&th= 142fd8d368370234 1118 12/16/13 Damon Connolly Law Mail - FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 1206/13 3. c) Novato Disposal offers all neighborhoods one week/vear where they can put out at the curb appliances or large bulky items at NO EXTRA fee! 4. d) MSS has many plastics they still "can't find a market for', yet Novato Disposal takes all manner of plastics, including rigid plastics (such as plastic trays, tubs and furniture). At most, I only use the pickup services one to two times per month. I, and many others, practice recycling, sustainable purchasing and conservation. Four plus pickups a month only teach people to not consider the packaging their food and products come in and to buy more. Where is my reduced rate for less MSS pickups/services? Sometimes I don't set out my green can for several weeks, the recycling cans maybe only every two or three weeks or more. There seems to be no consideration for customers with less waste for rate -paying purposes. 4. Lastly, in these last few years of the economic woes, how many businesses have given ANNUAL wage increases of any kind, much less as much as 5% increases? How can these rates be justified? Even the newer compost venture MSS has embarked upon sells their product and gives us no rate reductions for such revenue generated. As the notice for this agenda item is posted in the papers oniv hours before you take a vote, there are alot of ratepayers that are unaware of this annual rate -hiking event until AFTER the vote. As an involved citizen of San Rafael, I know many, many homeowners who are in agreement with me that these rates are too high, should not be increased, but definitely should be decreased! Some of you Council members may have no problem with paying $300+/year for these services. However, I ask you to consider the many others who do have a problem with these rates. We are called single -income. fixed income, or just plain low-income ratepayers. I fit into at least one of the above catagories. Please remember that these groups also are the people who consider voting/not voting for you when you run for office. To conclude, I ask you to consider the implications of your vote and to remember "the little guy" who is forced to pay rates that are at least 33% higher than our sister city only ten miles away from us. Perhaps we need some competitive bids to make MSS provide more for less. (Novato Disposal at www.unicycler.com, fyi.) Sincerely, Gail Grasso damon@damonconnollylaw.com <damon@damonconnollylaw. eom> Mon, Dec 16, 2013 at 2:36 PM Reply -To: damon@damonconnollylaw.com To: Esther Beirne <Esther.Beirne@cityofsanrafael.org> https:,'lmai I.q ooq le.convmai 1/u/0J?ui=2&i k=85ab123075&view=pt&search=inbox&th=142fd8d368370234 2/8 12116/13 Damon Connolly Law Mail - FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 121/16113 Your message was delivered to the recipient. Sent via BlackBerry by AT&T Cory Bytof <Cory. Bytof@cityofsanrafael.org> Mon, Dec 16, 2013 at 3:51 PM To: Kate. Colin@cityofsanrafael. org, Damon Connolly < damon@damonconnol ly law. com> Cc: Jim Schutz <Jim. Schutz@cityofsanrafael.org> Hello Damon and Kate, See belowfor a comment on tonight's rate increase. I had one other inquiry from Matt Butler of the San Rafael Yacht Harbor and he might come tonight to voice his opinion. I was able to explain the difference between Novato's rates and San Rafael's to him and he seemed satisfied as to why and supportive of the reasons, although he might still come to voice his concerns. Here is some information that may help. - Marin Sanitary Service is a union shop, and pays benefits, which apparently Unicyler does not pay (Novato's service, which is a larger corporate entity) - The average cable bill costs approximately three times as much per year as MSS' services for residential, whereas with curbside refuse and recycling service customers have 2-3 trucks coming to their house weekly. Average cell phone bills are higher as well. - MSS offers comparable services to most jurisdictions in the Bay Area, in some cases more, in some cases less, but there are so many services it is hard to compare apples to apples. However, MSS is at the forefront of ZW efforts and offers things like Food to Energy, which is not available in Novato and which promises to get us much closer to ZW. MSS offers all sorts of services, including hazardous waste drop off, and twice a year offers free drop off of a full cubic yard of debris for all their customers. - No franchise fees, or JPA fees for Novato, and they own the landfill so no tipping fees that I know of - Novato is an anomaly. Very few companies in the Bay Area have rates this low, and again, they have to do with being exempt from benefits, fees, and being owned by large corporate entities that have diversified revenue streams - As you know and have heard Patty say many times, MSS now does take all manner of plastics, but the markets are the markets, and some -times there is no market. Plus, plastics "recycling" is a hard pill to swallowwhen we know it only gets "upcycled" into one more use ratherthan recycled like aluminum or glass, - MSS rates are lowerthan many other Marinjurisdictions, and rates are all over the board. MSS is comparable to other jurisdictions in the Bay Area - NISS is a mom and pop, local company that Supports the community and keeps the money in our local economy - We noticed the meeting 10 days ago and this year are bringing it to YOU prior to the rate year, as opposed to in years past where we (almost always) had to set the rates retroactively, httr4s:,'In-eil.000ale.corWrmillul0i?ui=2&ik=85abl23075&\he.v--pt&search=inbox&Vi=142fd8d368370234 318 12/16/13 Damon Connolly Law Mail - FW Marin Sanitary SeNce annual rate hikes (despite no increase in services) --to San Rafael City Council members for 121/16/13 Please let me know if you have any questions before tonight. And Patty Garbarino will be there as always to answer questions as well. Thanks very much. Cory Bytof City of San Rafael Volunteer & Sustainability Program Coordinator (415) 485-3407 CityofSanRafael.org/green - Facebook SanRataelVolunteers.org - Facebook From: Esther Beirne Sent: Monday, December 16, 2013 2:36 PM To: Cory Bytof Cc: Nancy Mackle; Jim Schutz; Lisa Goldfien; Robert. Epstein (rob@epsteinlawyer.com) Subject: FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 12//16/13 (Quoted text hidden] Kate Colin <Kate. Colin@cityofsanrafael.org> Mon, Dec 16, 2013 at 4:31 PM To: Cory Bytof <Cory. Bytof@cityofsanrafael.org>, Damon Connolly <damon@damonconnollylaw.com> Cc: Jim Schutz <Jim. Schutz@cityofsanrafael.org> Hi Cory - Thanks for the explanation. The original email from the resident went to all the Council so you may be called upon to repeat this info in a public setting. See you tonight. Kate _—Original Message ---- From-, Cory Bytof Sent: Mon 12/16/2013 3:51 PM To: Kate Colin; Damon Connolly Cc: Jim Schutz Subject: FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 121/16/13 Hello Damon and Kate, See below for a comment on tonight's rate increase. I had one other inquiry from Matt Butler of the Sari Rafael Yacht Harbor and he might come tonight to voice his opinion. I was able to explain the difference between Novato's rates and San Rafael's to him and he seemed satisfied as to why and supportive of the reasons, although he might still come to voice his concerns. htfn-,-!irmfl ocmle.com/rrkiii/Li/0/?ui=2&ik--85abl23075&, ew=pt&search=inbox&th=142fd8d368370234 418