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Home My WebLink AboutCC Resolution 12184 (MSS Rates 2007)RESOLUTION 12184 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL SETTING MAXIMUM RATES AND FEES FOR MARIN SANITARY SERVICE REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES, TO BE EFFECTIVE RETROACTIVELY TO JANUARY 1, 2007. WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into a writtElm Amendment and Restatement Agreement dated September 4, 2001; and WHEREAS, Section 3(B) of the Amendment and Restatement Agreement provides for rates to be amended from time to time by the City Council; and; WHEREAS, Exhibit "C" of the Amendment and Restatement Agreement 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 Agreement; and WHEREAS, the City of San Rafael has conducted a review of said rate application and produced a report, recommending rate and fee adjustments, and WHEREAS, 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 for Marin Sanitary Service refuse and recyclable material collection and disposal services, to be effective, retroactive to January 1, 2007. Said "Exhibit C' shall be incorporated as the revised Exhibit "C' and shall be included as part of the Amended and Restated Agreement dated September 4, 2001. I, Jeanne M. Leoncini, 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 Tuesday, the W' of January, 2007, by the following vote, to wit: AYES: Councilmembers: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: Councilmembers: None ABSENT: Councilmembers: None J anne M. Leoncini, City Clerk WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2006\City\MSS Refuse Rates reso 07doc EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% $ 43.92 $ 41.52 $ 2.40 2007 2006 2007 2007 83.04 Proposed RATE INCREASE % INCR. Rate 2.71 0.15 Residential Distance over 50' (per 50' each can) 5.78 5.47 Standard Base Rates 0.31 5.7% Discontinued Rates" 32 gallon can - flat $ 21.96 $ 20.76 $ 1.20 5.8% 64 gallon can - flat 43.92 41.52 2.40 5.8% 96 gallon can - flat 65.88 62.28 3.60 5.8% 32 gallon can - hill 24.88 23.52 1.36 5.8% 64 gallon can - hill 49.76 47.04 2.72 5.8% 96 gallon can - hill 74.64 70.56 4.08 5.8% Low Income Rates" with this rate type. Low Income - 32 gallon can - flat $ 17.54 $ 16.58 $ 0.96 5.8% Low Income - 64 gallon can - flat 35.08 33.16 1.92 5.8% Low Income - 96 gallon can - flat 52.62 49.74 2.88 5.8% Low Income - 32 gallon can - hill 19.92 18.83 1.09 5.8% Low Income - 64 gallon can - hill 39.84 37.66 2.18 5.8% Low Income - 96 gallon can - hill 59.76 56.49 3.27 5.8% `Must meet Federal HUD Voucher Standards. 3.60 5.8% 32 gallon can - hill Residential customers only 23.52 1.36 5.8% Other Services Compacted 32 gallon $ 43.92 $ 41.52 $ 2.40 5.8% Compacted 64 gallon 87.84 83.04 4.80 5.8% Distance 5'-50' 2.86 2.71 0.15 5.5% Distance over 50' (per 50' each can) 5.78 5.47 0.31 5.7% Discontinued Rates" Senior rate - flat"` (Bi -weekly service) $ 15.50 $ 14.65 $ 0.85 5.8% Senior rate - hill" (Bi -weekly service) 19.75 18.67 1.08 5.8% *'Customers with these rates prior to 2005 will keep existing rate type. No new customers wil be added with this rate type. Apartments 32 gallon can - flat $ 21.96 $ 20.76 $ 1.20 5.8% 64 gallon can - flat 43.92 41.52 2.40 5.8% 96 gallon can - flat 65.88 62.28 3.60 5.8% 32 gallon can - hill 24.88 23.52 1.36 5.8% 64 gallon can - hill 49.76 47.04 2.72 5.8% 96 gallon can - hill 74.64 70.56 4.08 5.8% 'Rates are per container, per # of pickups/wk "'Minimum of one can per unit 1/8/2007 1 of 6 San Rafael - Exhibit C Rate Sheet 2007 EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% 2007 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate Apartments (cont.) FL 2 yd bin 1 x/week $ 208.46 $ 197.03 $ 11.43 5.8% FL 2 yd bin 2 x/week 477.82 451.63 26.19 5.8% FL 2 yd bin 3 x/week 723.28 683.63 39.65 5.8% FL 2 yd bin 4 x/week 973.08 919.74 53.34 5.8% FL 2 yd bin 5 x/week 1,227.26 1,159.98 67.28 5.8% FL 2 yd bin 6 x/week 1,485.78 1,404.33 81.45 5.8% FL 3 yd bin 1 x/week $ 271.33 $ 256.46 $ 14.87 5.8% FL 3 yd bin 2 x/week 497.26 470.00 27.26 5.8% FL 3 yd bin 3 x/week 755.71 714.28 41.43 5.8% FL 3 yd bin 4 x/week 1,020.68 964.73 55.95 5.8% FL 3 yd bin 5 x/week 1,292.20 1,221.36 70.84 5.8% FL 3 yd bin 6 x/week 1,570.25 1,484.17 86.08 5.8% FL 4 yd bin 1 x/week $ 387.09 $ 365.87 $ 21.22 5.8% FL 4 yd bin 2 x/week 713.37 674.26 39.11 5.8% FL 4 yd bin 3 x/week 1,083.06 1,023.69 59.37 5.8% FL 4 yd bin 4 x/week 1,461.54 1,381.42 80.12 5.8% FL 4 yd bin 5 x/week 1,814.85 1,715.36 99.49 5.8% FL 4 yd bin 6 x/week 2,244.64 2,121.59 123.05 5.8% FL 5 yd bin 1 x/week $ 418.70 $ 395.75 $ 22.95 5.8% FL 5 yd bin 2 x/week 828.77 783.34 45.43 5.8% FL 5 yd bin 3 x/week 1,259.51 1,190.46 69.05 5.8% FL 5 yd bin 4 x/week 1,701.14 1,607.88 93.26 5.8% FL 5 yd bin 5 x/week 2,153.66 2,035.60 118.06 5.8% FL 5 yd bin 6 x/week 2,617.09 2,473.62 143.47 5.8% FL 6 yd bin 1 x/week $ 490.72 $ 463.82 $ 26.90 5.8% FL 6 yd bin 2 x/week 994.53 940.01 54.52 5.8% FL 6 yd bin 3 x/week 1,511.41 1,428.55 82.86 5.8% FL 6 yd bin 4 x/week 2,041.37 1,929.46 111.91 5.8% FL 6 yd bin 5 x/week 2,584.40 2,442.72 141.68 5.8% FL 6 yd bin 6 x/week 3,140.50 2,968.34 172.16 5.8% RL 1 yd bin 1 x/week $ 136.62 $ 129.13 $ 7.49 5.8% RL 1 yd bin 2 x/week 275.42 260.32 15.10 5.8% RL 1 yd bin 3 x/week 416.40 393.57 22.83 5.8% RL 1 yd bin 4 x/week 559.56 528.88 30.68 5.8% RL 1 yd bin 5 x/week 704.89 666.25 38.64 5.8% RL 1 yd bin 6 x/week 852.41 805.68 46.73 5.8% (No longer offered to new customers) 1/8/2007 2 of 6 San Rafael - Exhibit C Rate Sheet 2007 EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% 2007 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate Apartments (cont.) RL 2 yd bin 1 x/week $ 209.02 $ 197.56 $ 11.46 5.8% RL 2 yd bin 2 x/week 418.17 395.25 22.92 5.8% RL 2 yd bin 3 x/week 633.81 599.06 34.75 5.8% RL 2 yd bin 4 x/week 853.80 806.99 46.81 5.8% RL 2 yd bin 5 x/week 1,227.26 1,159.98 67.28 5.8% RL 2 yd bin 6 x/week 1,485.78 1,404.33 81.45 5.8% FL Compacted Rate Per Yard $ 52.29 per yard $ 49.42 $ 2.87 5.8% 1/8/2007 3 of 6 San Rafael - Exhibit C Rate Sheet 2007 EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% 2007 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate Commercial 32 gallon can $ 21.83 $ 20.63 $ 1.20 5.8% 64 gallon can 43.66 41.26 2.40 5.8% 96 gallon can 65.49 61.89 3.60 5.8% Compacted 32 gallon 43.66 41.26 2.40 5.8% Compacted 64 gallon 87.32 82.52 4.80 5.8% Bags (32 gallon) 21.83 20.63 1.20 5.8% •••Rates are per container, per # of pickups/wk FL 2 yd bin per pickup $ 52.90 $ 50.00 $ 2.90 5.8% FL 2 yd bin 1 x/week 208.46 197.03 11.43 5.8% FL 2 yd bin 2 x/week 478.91 452.66 26.25 5.8% FL 2 yd bin 3 x/week 726.55 686.72 39.83 5.8% FL 2 yd bin 4 x/week 979.62 925.92 53.70 5.8% FL 2 yd bin 5 x/week 1,238.16 1,170.28 67.88 5.8% FL 2 yd bin 6 x/week 1,502.13 1,419.78 82.35 5.8% FL 3 yd bin per pickup $ 64.94 $ 61.38 $ 3.56 5.8% FL 3 yd bin 1 x/week 271.33 256.46 14.87 5.8% FL 3 yd bin 2 x/week 505.26 477.56 27.70 5.8% FL 3 yd bin 3 x/week 770.14 727.92 42.22 5.8% FL 3 yd bin 4 x/week 1,043.20 986.01 57.19 5.8% FL 3 yd bin 5 x/week 1,324.44 1,251.83 72.61 5.8% FL 3 yd bin 6 x/week 1,613.84 1,525.37 88.47 5.8% FL 4 yd bin per pickup $ 95.03 $ 89.82 $ 5.21 5.8% FL 4 yd bin 1 x/week 387.09 365.87 21.22 5.8% FL 4 yd bin 2 x/week 715.55 676.32 39.23 5.8% FL 4 yd bin 3 x/week 1,089.60 1,029.87 59.73 5.8% FL 4 yd bin 4 x/week 1,474.62 1,393.78 80.84 5.8% FL 4 yd bin 5 x/week 1,765.92 1,669.11 96.81 5.8% FL 4 yd bin 6 x/week 2,277.33 2,152.49 124.84 5.8% FL 5 yd bin per pickup $ 101.31 $ 95.76 $ 5.55 5.8% FL 5 yd bin 1 x/week 418.70 395.75 22.95 5.8% FL 5 yd bin 2 x/week 842.09 795.93 46.16 5.8% FL 5 yd bin 3 x/week 1,283.58 1,213.21 70.37 5.8% FL 5 yd bin 4 x/week 1,738.67 1,643.36 95.31 5.8% FL 5 yd bin 5 x/week 2,207.39 2,086.38 121.01 5.8% FL 5 yd bin 6 x/week 2,689.74 2,542.29 147.45 5.8% 1/8/2007 4 of 6 San Rafael - Exhibit C Rate Sheet 2007 EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% Commercial (cont.) FL 6 yd bin per pickup FL 6 yd bin 1 x/week FL 6 yd bin 2 x/week FL 6 yd bin 3 x/week FL 6 yd bin 4 x/week FL 6 yd bin 5 x/week FL 6 yd bin 6 x/week RL 1 yd bin 1 x/week RL 1 yd bin 2 x/week RL 1 yd bin 3 x/week RL 1 yd bin 4 x/week RL 1 yd bin 5 x/week RL 1 yd bin 6 x/week (No longer offered to new customers) RL 2 yd bin 1 x/week RL 2 yd bin 2 x/week RL 2 yd bin 3 x/week RL 2 yd bin 4 x/week RL 2 yd bin 5 x/week RL 2 yd bin 6 x/week FL Compacted Rate Per Yard RO 10 yd box per pickup RO 10 yd box 1 x/week RO 10 yd box 2 x/week RO 10 yd box 3 x/week RO 10 yd box 4 x/week RO 10 yd box 5 x/week RO 10 yd box 6 x/week RO 12 yd box per pickup 1/8/2007 2007 $ $ $ $ $ 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate 115.51 $ 109.18 $ 6.33 5.8% 497.08 469.83 27.25 5.8% 1,010.51 955.11 55.40 5.8% 1,540.29 1,455.85 84.44 5.8% 2,086.41 1,972.03 114.38 5.8% 2,648.87 2,503.66 145.21 5.8% 3,227.68 3,050.74 176.94 5.8% 141.77 $ 134.00 $ 7.77 5.8% 286.27 270.58 15.69 5.8% 433.49 409.73 23.76 5.8% 583.44 551.46 31.98 5.8% 736.11 695.76 40.35 5.8% 891.51 842.64 48.87 5.8% 214.72 $ 202.95 $ 11.77 5.8% 434.88 411.04 23.84 5.8% 660.50 624.29 36.21 5.8% 891.57 842.69 48.88 5.8% 1,238.16 1,170.28 67.88 5.8% 1,502.13 1,419.78 82.35 5.8% 52.29 per yard $ 49.42 $ 2.87 5.8% 164.56 $ 155.54 $ 9.02 5.8% 700.59 662.18 38.41 5.8% 1,433.71 1,355.11 78.60 5.8% 2,200.29 2,079.67 120.62 5.8% 2,999.12 2,834.71 164.41 5.8% 3,830.65 3,620.65 210.00 5.8% 4,694.86 4,437.49 257.37 5.8% 197.48 $ 186.65 $ 10.83 5.8% 5 of 6 San Rafael - Exhibit C Rate Sheet -2007 EXHIBIT C MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% 2007 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate Commercial (cont.) RO 18 yd box per pickup $ 296.22 $ 279.98 $ 16.24 5.8% RO 18 yd box 1 x/week 1,258.36 1,189.38 68.98 5.8% RO 18 yd box 2 x/week 2,575.58 2,434.39 141.19 5.8% RO 18 yd box 3 x/week 3,951.64 3,735.01 216.63 5.8% RO 18 yd box 4 x/week 5,386.55 5,091.26 295.29 5.8% RO 18 yd box 5 x/week 6,880.30 6,503.12 377.18 5.8% RO 18 yd box 6 x/week 8,432.91 7,970.61 462.30 5.8% RO 20 yd box per pickup $ 329.13 $ 311.09 $ 18.04 5.8% RO 20 yd box 1 x/week 1,398.19 1,321.54 76.65 5.8% RO 20 yd box 2 x/week 2,861.76 2,704.88 156.88 5.8% RO 20 yd box 3 x/week 4,390.71 4,150.01 240.70 5.8% RO 20 yd box 4 x/week 5,985.05 5,656.95 328.10 5.8% RO 20 yd box 5 x/week 7,644.78 7,225.69 419.09 5.8% RO 20 yd box 6 x/week 9,369.89 8,856.23 513.66 5.8% RO 25 yd box per pickup $ 411.41 $ 388.86 $ 22.55 5.8% RO 25 yd box 1 x/week 1,955.88 1,848.66 107.22 5.8% RO 25 yd box 2 x/week 4,003.29 3,783.83 219.46 5.8% RO 25 yd box 3 x/week 5,901.58 5,578.05 323.53 5.8% RO 25 yd box 4 x/week 8,044.41 7,603.41 441.00 5.8% RO 25 yd box 5 x/week 10,275.26 9,711.97 563.29 5.8% RO 25 yd box 6 x/week 12,594.02 11,903.61 690.41 5.8% RO Compacted Rate Per Yard $ 52.29 $ 49.42 $ 2.87 5.8% Lock Charges - single pickup $ 3.19 $ 3.02 $ 0.17 5.6% Lock Charges - weekly pickup 14.49 13.70 0.79 5.8% Compacted refuse w/o recyclables 52.29 49.42 2.87 5.8% Compacted refuse with recyclables 43.08 40.72 2.36 5.8% Refuse per yard - per pickup 20.20 19.09 1.11 5.8% Box Rental - 1 yard 42.77 40.43 2.34 5.8% Box Rental - 2 yard 48.13 45.49 2.64 5.8% Box Rental - 3-5 yard 53.25 50.33 2.92 5.8% Box Rental - 6 yard 60.17 56.87 3.30 5.8% Box Rental - 10 yard 70.99 67.10 3.89 5.8% Box Rental - 18 yard 142.28 134.48 7.80 5.8% Box Rental - 20 yard 144.37 136.46 7.91 5.8% Box Rental - 25 yard 150.43 142.18 8.25 5.8% Return Trip Charge 31.31 29.59 1.72 5.8% Steam Clean Bin Charge 62.73 59.29 3.44 5.8% Overweight Charge Per Ton*** 117.96 111.49 6.47 5.8% ***Comm'I boxes exceeding 300lbs/yard 1/8/2007 6 of 6 San Rafael - Exhibit C Rate Sheet 2007 C►Tl' c� Agenda Item No: 14 Meeting Date: January 16, 2007 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: MANAGEMENT SERVICES Prepared by: Stephanie Lovette Economic Development Coordinator City Manager Approval: J_ SUBJECT: TO CONSIDER A REQUEST BY MARIN SANITARY SERVICE FOR A RATE INCREASE FOR REFUSE COLLECTION AND RECYCLING SERVICES AND ADOPTION OF RESOLUTION SETTING RATES RECOMMENDATION: ACCEPT RATE RECOMMENDATIONS AND ADOPT RESOLUTION ESTABLISHING RATES AND SERVICES EFFECTIVE RETROACTIVELY TO JANUARY 1, 2006. BACKGROUND: Marin Sanitary Service ("MSS") provides refuse collection and recycling services to the City of San Rafael and Larkspur, Ross, County of Marin including within the Ross Valley Sanitary District boundaries, and the Las Gallinas Sanitary District (the "Franchising Agencies"). The revenue -based methodology used to set the annual rates is contained in the Amendment and Restatement Agreement approved by the City Council on September 4, 2001. This Agreement provides for a detailed review of MSS' operations every three years. In the interim two-year period, annual summary reviews would be conducted based on the last detailed analysis. Summary reviews also incorporate the use of indices, analyze key expense components such as disposal costs and make sure revenue requirements are satisfied. The last detailed review was completed in 2004 and summary reviews were completed for 2005 and 2006. 2007 is another detailed review year. The Franchising Agencies have utilized the services of Hilton, Farnkopf and Hobson (HFH) for several years to review the MSS rate proposal. MSS rate proposal for 2007 represents a 10.1 % increase over 2006 rates. The MSS proposal shows San Rafael rates being reduced by an additional 2.1 % reflecting a credit against the one time adjustment in 2006 for the inclusion of the properties within the San Rafael City limits that were formerly served by Las Gallinas Sanitary District. HFH evaluated the MSS rate proposal and recommended several adjustments resulting in an overall 8.1% increase for the Franchising Agencies and a 5.8% increase for San Rafael reflecting the credit discussed above. The HFH Report is included herein as Exhibit A. FOR CITY CLERK ONLY File No.: Council Meeting: 7//b,Ci7 Disposition: ADOPTED RESOLUTION NO. 12184 -RESOLUTION SETTING MAXIMUM RATES AND FEES FOR MARIN SANITARY SERVICE REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES, TO BE EFFECTIVE RETROACTIVELY TO JANUARY 1, 2007 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 2 ANALYSIS: MSS RATE REQUEST: As shown on Page 10 of the HFH Report, the major rate increase components are as follows: Disposal 2.8% The Agreement with Redwood Landfill expires in 2007. Current negotiations indicate that the disposal fee would increase from $44.37 per ton to $51.00 per ton. Depreciation 2.7% For new equipment for the dual -stream recycling program and replacement of an aged vehicle fleet. Interest Cost 1.2% New equipment purchases. See above. Other Operating Cost 1.4% Wages, pensions, fuel, etc. RATE REVIEW RESULTS: The HFH staff recommended several adjustments to MSS rate proposal. These adjustments were reviewed and accepted by MSS. Key elements as shown on Pages 8-9 of HFH Report: 1. Fuel. $75,640 decrease due to the difference between MSS' calculations and HFH's calculations. 2. Wages. A $23,961 increase to union pension contribution. 3. Maintenance. $67,617 decrease due to several errors in the MSS rate application. 4. Depreciation. $8,585 increase. 5. Operations. A decrease of $206,597. RATE SURVEYING IN BAY AREA: As part of conducting the rate application review, the franchising agencies asked HFH to conduct a survey of Bay Area refuse haulers. The actual survey results from our neighboring communities are presented on Attachment 5 of the HFH Report. Please note the differences in services provided when comparing rates. Attachment 5 summarizes the survey data for residential 30-35 gallon can weekly service. If the rates presented are approved, San Rafael will be 9% less than the average of other Bay Area jurisdictions providing similar services. Attachment 5 also identifies the City's three -yard commercial bin, (once a week) service to those of all Bay Area cities and agencies with similar services. San Rafael is 2.7% less than the average of other Bay Area jursidictions with similar services. One -yard bin services are also included in Attachment 5. SAN RAFAEL CITY COUNCIL AGENDA REPORT / PaEre: 3 ALLOCATION OF 2007 RATES' In 2006, staff and HFH and MSS representatives spent a considerable amount of time assessing the rates across all customer types in comparison with other Marin and Bay Area communities. This analysis resulted in most commercial accounts rising between 5% and 8% for bin service. Customers who used roll off service and produced the heaviest loads with high collection frequencies experienced the higher rate changes. Staff is recommending that the 5.8% increase be applied across the board to all residential and apartment can service accounts. Actual rates for all customers are provided as "Exhibit "B" to this report, which under our MSS Amended Agreement requires Exhibit "C" of such Agreement to be updated to reflect all customer rates. RATE HISTORY: Refuse rate changes have varied over the past several years. Increases in MSS rates have been as follows: ➢ 2006 8.30% (included 2.4% increase for Franchise fees in North San Rafael) ➢ 2005 3.40% ➢ 2004 6.10% (included 1.8% for refuse vehicle impact fees) ➢ 2003 5.50% ➢ 2002 0.40% ➢ 2001 3.49% ➢ 2000 1.51% ➢ 1999 0.00% ➢ 1998 4.66% The average rate increase for the past nine years, including the 2007 recommendation, is 3.71 %. The average Consumer Price Index ("CPI") for the same period was 3.02%. OTHER SERVICE OR RATE IMPACTS: Dual Sort Recycling MSS is implementing dual sort recycling in the Franchise Area. Dual sort recycling requires the purchase of new trucks and recycling containers. In San Rafael, the program is being implemented in three phases. Terra Linda was the first to receive the new service. The new service was instituted in East San Rafael and portions of Central San Rafael this winter. West San Rafael, Fairhills and Bret Harte are anticipated to receive the new service in 2007. Low Income Rates Up through 2004, residential customers who were age eligible qualified for senior rates (both flat and hill service areas). These reduced rates were based upon twice a month pick up service. This program was discontinued but customers who participated prior to 1995 will continue receiving lower rates. MSS instituted another program that provides reduced rates for customers that meet the Federal HUD Section 8 standards. MSS worked with community representatives and the Housing Authority to develop this program. Staff believes the discounted rates program, as redefined, expands our ability to reach those in the San Rafael community who could benefit under reduced charges for garbage service. SAN RAFAEL CITY COUNCIL AGENDA REPORT / PaLye: 4 FISCAL IMPACT: Exhibit B contains the complete rate request representing a $1.20 per month increase to the 32 -gallon flat residential service customer, and $1.36 per month for residential customers serviced in hillside areas. The 5.8% overall increase is applied to all customer types and service options in Exhibit "B". If approved, these rates are projected to satisfy our contractual obligations to meet the MSS revenue requirement to cover San Rafael refuse and recycling service costs, including franchise fees. OPTIONS: The City Council may choose to: 1. Accept the staff recommendation and increase MSS rates as identified in Exhibit "B" retroactive to January 1, 2007. 2. Leave rates at the current (2006) levels. ACTION REQUIRED: Staff recommends the Council accept the report and adopt the Resolution as presented. ATTACHMENTS Exhibit A: Hilton, Farnkopf and Hobson Review of MSS 2007 Rate Application Exhibit B: MSS Complete rate request WAManagement Services- Work File\Finance- WorkFile\Council Material\Staff Reports\2007\City\refuse rate recomm 2007.doc FRANCHISORS OF MARIN SANITARY SERVICE REVIEW OF MARIN SANITARY SERVICE'S 2007 RATE APPLICATION HF&H CONSULTANTS, LLC HF H December 10, 2006 Fina 1 Report EXHIBIT A HF&H CONSULTANTS, LLC Advisory Services to Municipal Management 2175 N. California Boulevard, Suite 990 Walnut Creek, California 94596 Telephone: 925/977-6950 Fax: 925/977-6955 www.hfh-consultants.com December 10, 2006 Mr. Kenneth Nordhoff Interim City Manager City of San Rafael 1400 Fifth Avenue San Rafael, CA 94915-1560 Mr. Mark Williams District Manager Las Gallinas Sanitary District 300 Smith Ranch Road San Rafael, CA 94903 Northern California Southern California Robert D. Hilton, CMC John W. Farnkopf, PE Laith B. Ezzet, CMC Mr. Gary Broad Town Manager Town of Ross 31 Sir Francis Drake Blvd. Ross, CA 94957 Ms. Jean Bonander Mr. Jeff Rawles City Manager Manager, Special Projects City of Larkspur County of Marin 420 Magnolia Avenue 3501 Civic Center Drive, Room 404 Larkspur, CA 94939 San Rafael, CA 94903-4155 Subject: Review of Marin Sanitary Service's 2007 Rate Application Dear Ms. Bonander and Messrs. Nordhoff, Williams, Broad, and Rawles: This report documents HF&H Consultants, LLC, (HF&H) findings and recommendations from our review of Marin Sanitary Service's (MSS) application for a 10.1 % increase to its solid waste rates, effective January 1, 2007 (Application), submitted to the cities of San Rafael and Larkspur, the Town of Ross, the County of Marin, and the Las Gallinas Valley Sanitary District (collectively referred to as "Franchisors").' MSS also requested an additional 5.26% increase to rates of customers previously franchised by the Ross Valley Sanitary District (RVSD) and now franchised by the County of Marin (County) resulting from the increase in franchise fees. Additionally, MSS requested a decrease in the San Rafael rates of 2.1% due to a special one-time rate increase in 2006. The following table summaries MSS' rate increase request: Table 1 2007 Rate Increase Requested by MSS Las Gallinas - San Rafael Requested Percentage Increase to Solid Waste Rates (All Franchisors) 10.1% Additional San Rafael and County Adjustment (2.1%) Total Requested Percentage to Solid Waste Rates 8.0% 1 Refer to Attachment 1. County County Larkspur Ross RVSD Other 10.1% 10.1% 10.1% 10.1% 10.1% 5.3% 10.1% 10.1% 10.1% 15.4% 8.1% HILTON FARNKOPF & HOBSON, LLC Marin Franchisors Group December 10, 2006 Page 2 On May 2, 2006, the RSVD requested the County of Marin accept and approve the transfer of the RSVD's solid waste franchise agreements, both North and South areas, with MSS. The South area was part of the Franchisors group. On July 11, 2006, the Board of Supervisors accepted the transfer of the RSVD South Franchise Agreement and executed a new agreement with MSS effective immediately. Under the RSVD Agreement, MSS paid a flat franchise fee amount of $3,600 per year. Under the new agreement with the County, MSS is required to pay a franchise fee of 5% of gross receipts of all customers. Findings Based on our review of the Application, performed in accordance with the Rate Index Methodology, we determined that a total increase of 8.1% to current rate revenues is necessary to compensate MSS for its expenses and provide it the agreed-upon level of profit. This lower increase 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 Attachment 2. This increase is due largely to the anticipated 15% increase in disposal expense (from $44.37 to $51.00 per ton) and depreciation and interest charges related to new equipment purchases. In addition to the 8.1% increase, we determined the RVSD customers now under the County contract require a 5.3% increase to include the County franchise fees in their rate. The increase is described in Section V of the report and reflected in Attachment 4. As a result of a one-time rate increase in 2006, the City of San Rafael will receive a 2.3% reduction to the recommended 8.1% netting to a 5.8% increase for 2007. The decrease is described in Section V of the report and reflected in Attachment 4. The following table summarizes the HF&H adjusted rate increase request: Table 2 2007 Rate Increase as Adjusted by HF&H Survey of Comparable Rates Attachment 5 includes HF&H's survey of solid waste rates at various residential and commercial service levels for jurisdictions located throughout the Bay Area. The survey shows the Franchisors' average residential rate for 32 gallon service is 5.6% higher ($1.09/month) than S: j Clients \ S \ San Rafael j 2006 - SIN\ 53719 - MSS Rate App Reviero - Franchisors \ Final Report j Final Report _01-10-07.doc Las Gallinas - County San Rafael County Larkspur Ross RVSD Other Adjusted Percentage Increase to Solid Waste Rates (All Franchisors) 8.1% 8.1% 8.1% 8.1% 8.1% 8.1% Additional San Rafael and County Adjustment (2.3%) 5.3% Total Adjusted Percentage to Solid Waste Rates 5.8% 8.1% 8.1% 8.1% 13.4% 8.1% Survey of Comparable Rates Attachment 5 includes HF&H's survey of solid waste rates at various residential and commercial service levels for jurisdictions located throughout the Bay Area. The survey shows the Franchisors' average residential rate for 32 gallon service is 5.6% higher ($1.09/month) than S: j Clients \ S \ San Rafael j 2006 - SIN\ 53719 - MSS Rate App Reviero - Franchisors \ Final Report j Final Report _01-10-07.doc a HILTON FARNKOPF & HOBSON, LLC Marin Franchisors Group December 10, 2006 Page 3 the average of the Bay Area jurisdictions included in the survey (Attachment 6). The Franchisors' residential rates are 9% lower ($2.08/month) than the other Bay Area jurisdictions with similar services. The Franchisors' commercial rates for a 3 -yard bin serviced one time per week range from $252.86 (County) to $279.68 (Las Gallinas - County). The average rate for the Franchisors' is $265.68, which is 2.7% less than the other Bay Area jurisdictions with similar services and 1.5% higher than all Bay Area jurisdictions included in the survey (Attachment 7). We caution the Franchisors that this survey is presented for information only. They should not draw conclusions from this information, because rate comparisons are intrinsically difficult. This difficulty results from differences in items 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). We would like to express our appreciation to 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 925-977-6952. Very truly yours, HF&H CONSULTANTS, LLC R�rtDtonl4c;`Mec President cc: Mr. Joseph Garbarino, Marin Sanitary Service Mr. Joseph J. Garbarino, Marin Sanitary Service Ms. Patricia Garbarino, Marin Sanitary Service Mr. Ray Holmes, Marin Sanitary Service Maa Sheehan, CPA Senior Associate S: � Clients \ S j Sale Rafael, 2006 - Sl•V\ S3719 - MSS Rate App Review - Franchisors � Final Report \ Final Report _01-10-07 doc Franchisors cfhlalin Sanitary Service Table of Contents Review of Macro Sanitaria Service's 2007 Rate Application — Final Report TABLE OF CONTENTS SECTIONI. BACKGROUND........................................................................................................................1 DESCRIPTION OF SERVICES...................................................................................................................1 NEWRECYCLING SERVICES..................................................................................................................1 SECTION II. RATE REVIEW APPROACH................................................................................................... 2 SCOPEOF WORK.................................................................................................................................... 2 LIMTTATIONS.......................................................................................................................................... 3 SECTION III. MARIN SANITARY SERVICE'S PROJECTION METHODOLOGY........................................4 REVENUES.............................................................................................................................................. 4 EXPENSES............................................................................................................................................... 4 PROFIT.................................................................................................................................................... 5 SECTION IV. PROPOSED ADJUSTMENTS................................................................................................. 6 ADJUSTMENTS TO 2007 PROJECTED REVENUES................................................................................... 7 ADJUSTMENTS TO 2005-2006 PROJECTED EXPENSES........................................................................... 7 ADJUSTMENTS TO 2007 PROJECTED EXPENSES.................................................................................... 8 SECTIONV. RATE ADJUSTMENT............................................................................................................10 RATEADJUSTMENT.............................................................................................................................10 SPECIAL ADJUSTMENTS FOR SAN RAFAEL AND COUNTY (RVSD)..................................................11 ATTACHMENTS Attachment 1- Marin Sanitary Service Rate Application Summary Attachment 2 - HF&H Adjustment Summary Attachment 3 - Adjusted Rate Application Summary Attachment 4 - HF&H Adjusted Rate Application Summary for San Rafael and County (RVSD) Attachment 5 - Rate Survey Attachment 6 - Chart of Residential 32 -Gallon Rates Attachment 7 - Chart of Commercial 3-CY Rates Deember 10, 2006 Frmtchisors of Marin Sanitary Service Backpourut Revieto of Marin Sauitari/ Service's 2007 Rate Applic:atiort — Final Report SECTION I. BACKGROUND Description of Services Marin Sanitary Service (MSS) provides solid waste, 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 (collectively referred to as "Franchisors"). In addition, MSS and its related entities (Marin Resource and Recovery (MRR) and Marin Resource Recovery Center (MRRC)), 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, Fairfax, and San Quentin prison. MSS also provides non -franchised debris box 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 MSS' transfer station (Marin Sanitary Service Transfer Station) then transports it to the Redwood Sanitary Landfill. MSS delivers recyclable materials to the MRR, 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 MRRC facility where recyclable materials are extracted from the waste stream, processed, and marketed. MRRC delivers residual waste, remaining after the recyclable materials are extracted, to the transfer station. This residual waste is transferred to Redwood Sanitary Landfill or Potrero Hills Landfill. New Recvclina Services Marin Sanitary Service (MSS) is in the process of changing the method of residential recycling collection from a three -stream to a dual -stream process, in response to customer demand for a more convenient method of recycling. The dual -stream recycling program will be phased in over several years and will enhance customer satisfaction through the use of a wheeled cart, while still ensuring the highest quality of finished product. MSS is converting 6 routes of the 9.5 recycling routes during 2006 and will distribute approximately 15,000 carts to customers by the end of the year. Each route is serviced by new split -body trucks. The new trucks meet all of the State of California clean air diesel regulations and replace the oldest vehicles of the truck fleet. The conversion of the Franchisors' Group routes will continue through 2007 with the purchase of new trucks and carts. Decouber 10, 2006 Frati :hisors of Marti Saititary Service Review of Matin Sanitart/ Service's 2007 Rate Application — Final Report Rate Review Approach SECTION II. RATE REVIEW APPROACH The Rate Adjustment Methodology was adopted and approved in 2001. Once every three years the rate application shall be based on: the MSS' actual financial results of operations for the preceding rate year ending December 31: year-to-date financial results of operations for the current rate year; audited financial statements for the preceding rate year ending December 31; and MSS' forecasted costs for the next year. The result is called the Base Year Revenue Requirement. Two out of every three years, the application shall be based on the Base Year Revenue Requirement adjusted by various indices. The rate application submitted by MSS for 2007 establishes the Base Year Revenue Requirement to be used in the 2008 and 2009 rate applications. The application submitted for the Base Year Revenue Requirement requires an in-depth review of the financial results of MSS' operations. Scooe of Work Our approach to the review of the MSS' Application is intended to allow MSS to recover its projected actual, reasonable, and necessary costs and to achieve a reasonable profit. HF&H staff performed this review based upon procedures agreed to between the Franchisors and HF&H, as documented in our proposal dated August 31, 2006. These procedures included the following activities: • Reviewing MSS' application to determine completeness, mathematical accuracy, and the reasonableness and logical consistency of the assumptions supporting the projected revenues and expenses; • Testing projected revenues to ensure that they are consistent with past trends and anticipated conditions; • Testing projected expenses to ensure that only reasonable, necessary, and actual expenses are included, and that expenses of MSS are reasonably allocated between its franchised and non -franchised operations; • Reviewing the support for assumptions regarding key factors affecting future costs; • Comparing actual results to projections; • Calculating MSS' projected revenue requirement (expenses plus profit) for 2007, and the related rate adjustment based on the results of our review; • Reviewing our recalculation of MSS' projected results of operations and our recommendations with MSS and the Franchisors representatives; and • Preparing a written report that documents our findings and recommendations. December 10,2006 Franchisors of Marin Sanitary Srroice Rate Rcoiem Approach Review of Main Sanitary Service's 2007 Rate Application — Final Report 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 and Associates has issued an unqualified opinion of MSS' 2005 financial statements. There are related party transactions included in MSS' projections at rates that have been discussed and approved by the Franchisors in previous reviews. Our conclusions are based 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. Decendw 10,2006 Franchisors c f Marin Sanitary Service Marin Sanitary Service's Projection Methodology Reviery of Matin Sanitatit Service's 2007 Rate Application — Final Report SECTION III. MARIN SANITARY SERVICE'S PROJECTION METHODOLOGY On October 10, 2006, MSS submitted a rate application to the Franchisors requesting that solid waste collection rates be increased by 10.1 %, effective January 1, 2007 for all jurisdictions except those in the City of San Rafael and those previously franchised by RVSD. They requested a reduction of 2.1% to the City of San Rafael's solid waste collection rates. This reduction is the result of greater than projected revenue in 2006, which was intended to compensate MSS franchise fees paid to the City of San Rafael, as the result of the transition of Las Gallinas "City" accounts to the City of San Rafael. MSS also requested an additional 5.3% increase to RVSD rates for franchise fees due the County as a result of RVSD becoming part of the County's jurisdiction for solid waste collection. (A summary of MSS' rate application is included as Appendix A). The following describes MSS' methodology in projecting 2006 revenues and expenses. Revenues Route Revenues MSS projected 2007 rate revenues (net of franchise fees) of $20,756,975 by annualizing the revenues received through September 2006, then calculating and deducting franchise fees payable to each jurisdiction in accordance with the franchise agreements. Non -Regulated Revenues MSS projected 2007 non-regulated revenues of $56,168 by annualizing revenues received through September 2006. The non-regulated revenues are disposal fees received at the transfer station for the transfer, transport, and disposal of solid waste from MSS' recycling facility (MRR) and Household Hazardous Waste. Expenses MSS projected its 2007 expenses, by category, as described below: Wages. Multiplying projected 2006 wages escalated by an average wage increase of 3.5%. This is in conformance with the Collective Bargaining Agreement (CBA) between MSS and General Truck Drives, Warehousemen & Helpers Union, Local No. 624. Projected 2006 wages were calculated by multiplying actual 2005 wages by 3%. • Benefits. Multiplying annualized June 2006 Year -to -Date (YTD) actual health benefit expense by 1 plus 2.7%, based on the percentage change in the "Employment Cost Index - Benefits (Private Industry Workers; 2005=100)" for the most recent 12 month period. December 10,2006 Franchisors of Marin Sanitary Service Marin Sanitary Sovice's Projection Methodology Renieno of Marin Sanitcuy Service's 2001 Rate Application — Final Rgort • Workers Compensation. Multiplying projected 2007 wage expense (described above) by the projected premium rates received from MSS' workers compensation insurance broker. • Disposal Fees. Annualizing MSS' June 2006 YTD actual disposal expense. MSS anticipates no change in tonnage disposed; however, they are in the process of renegotiating a disposal contract with Redwood Landfill. MSS used the most recent disposal rate discussed during their negotiations. • Fuel. Multiplying annualized June 2006 YTD fuel expense by 1 plus the 29.4% change in the Consumer Price Transportation Index - Motor Fuel (All Urban Consumers) from July 2005 to July 2006. • Maintenance. Multiplying annualized June 2006 YTD maintenance expense by 1 plus the 4.8% percentage change in the Consumer Price Transportation Index - Motor Vehicle Maintenance and Repair (All Urban Wage Earners) from July 2005 to July 2006. • Depreciation/Lease. Adding to the book value of current assets, the values of replacement vehicles, replacement containers, and computer equipment MSS is planning to acquire, and capital expenses related to the continued roll out of the dual -stream recycling program and retrofitting vehicles to be in compliance with California's new CARB regulations. • Other Operating/G&A. Multiplying annualized June 2006 YTD other operating/G&A expense by 1 plus the 3.9% percentage change in the San Francisco - Oakland -San Jose Metropolitan Consumer Price Index (All Urban Consumers) from June 2005 to June 2006 • JPA Fees. Multiplying the projected disposal tons by the current JPA rate per ton. • Interest. Interest expense was calculated using amortization tables to calculate the actual interest portion of future debt payments. MSS included the amortization of financing fees associated with the California Pollution Control Financing Bonds issued during 2006. Profit MSS calculated its 2007 profit of $1,897,815, applying a 90.5% pre-tax operating ratio to its 2007 total projected expenses eligible for profit. December 10,2006 Fratiddsors c� Xfarirr Sanitary Servire Rr criery of Marin Sanitary Service's 2007 Rate Applicativn - Fival Rcpvrt Proposal ArIjitstntertts SECTION IV. PROPOSED ADJUSTMENTS The following is a summary of HF&H's proposed adjustments to MSS' projected 2007 revenues, expenses, and profit. 6 Decentber 70, 2006 Exhibit 1 Marin Sanitary Service - Rate Adjustment Calculation As Adjusted By HF&H ($000's Unless Otherwise Indicated) Projected YE 2007 REVENUES 1. Route Revenue at Current Rates Projected By MSS 20,757 2. Route Revenue Adjustment - 3. Adjusted Gross Route Revenues 20,757 4. Less: Franchise Fees Projected By MSS (at current route revenue) (1,811) 5. Recalculation of Franchise Fees Based on Revenue Adj. Above - 6. Adjusted Franchise Fees (1,811) 7. Less: Vehicle Impact Fees Projected by MSS (196) 8. Adjusted Net Route Revenue (Line 3 + Line 6 + Line 7) 18,750 9. Plus: Non -Regulated Revenues Projected by MSS 56 11. Total Projected Net Revenues (Line 8 + Line 9) 18,806 EXPENSES 12. Operating Expenses Elibible for Profit Projected by MSS 18,079 13. HF&H Operating Expense Adjustments 14. Wages 24 15. Disposal Fees 30 16. Fuel Expenses (127) 17. Maintenance (68) 18. Depreciation 9 19. Other Operating / G&A (195) 20. Adjusted Operating Expenses 17,750 21. Profit at 90.5% Operating Ratio Projected by MSS 1,898 22. Recalculation of Profit Based on 90.5% Op Ratio (35) 23. Adjusted Profit 1,863 24. Interest Expense Projected by MSS 721 25. HF&H Interest Expense Adjustment (15) 26. Adjusted Interest Expense 706 27. Total Revenue Requirement (Lines 20 + Line 23 + Line 26) 20,320 28. Surplus/ (Deficit) (Line 11- Line 27) (1,514) 29. Rate Adjustment (-Line 27 / Line 8) 8.1% 6 Decentber 70, 2006 Franchisors of Marin Sanitary Service Proposed Adjustments Reviery of Matin Sanitiny Service's 2007 Rate Application — Final Report Adiustments to 2007 Proiected Revenues Route Revenue Adjustments (Line 2): HF&H does not recommend an adjustment to projected route revenues. MSS' projection methodology of annualizing September 2006 YTD route revenues resulted in 2006 estimated revenues being approximately 0.2% less than expected, based on the rate increases effective January 1, 2006. During 2006 MSS changed their billing system. The new billing system allows MSS to record revenue when the services are performed rather than when cash is received, as the previous system did. As a result, the revenue is much easier to forecast as service levels do not have significant variances from month to month. In the prior year, the City of San Rafael added a supplemental increase to their rates to compensate MSS for additional franchise fees incurred by MSS as a result of converting the customers in the Las Gallinas Valley Sanitary District that reside within the City of San Rafael converting to the City of San Rafael rates. A portion of the increase was for one-time expenses and will be removed from their rates for 2007. In addition, HF&H tested rates before and after the rate increase for each member agency to verify MSS implemented the correct rate adjustment. The rate adjustments were made between January 2006 and April 2006 and were effective January 1, 2006; therefore, MSS applied a one- time, retroactive adjustment to each account, as necessary. HF&H also tested accounts from each member agency to verify the correct calculation of the retroactive adjustment and to verify the retroactive adjustment was billed. HF&H found only minor immaterial discrepancies, which are not systematic, and is confident MSS correctly implemented the required rate increase and retroactive adjustments. Adiustments to 2005-2006 Proiected Expenses The Franchisors have agreed to retroactively adjust fuel and disposal expense to the actual expense due to the nature of the expense not being in total control of MSS. Disposal Fees/Yard Waste Processing (Line 15): HF&H recommends increasing solid waste disposal expense and yard waste processing fees by $29,836, due to the following: • A $62,767 increase in disposal expense based upon HF&H's recalculation of the 2005 disposal expense using tonnage reports provided by MSS. A $32,931 decrease in disposal expense for 2006 resulting from less than projected tonnage. HF&H projected solid waste disposal and yard waste processing costs by annualizing the actual June YTD disposal and processing tonnage, and excluded all non-regulated (i.e., San Anselmo, Fairfax, and RVSD-North) tonnage. Fuel Expense (Line 16): HF&H recommends a $51,421 decrease to fuel expense, due to the following: A $13,104 decrease due to a difference between actual 2005 fuel expenses and projected 2005 fuel expenses. The 2005 rate adjustment made as a result of the 2006 rate review, was calculated based on a projected 30.1% increase in fuel expense. The actual percentage increase in the price per gallon of fuel was 27.6%. December 10,2006 Franchisors cfMafiii Sanitaty Service. Reviety of Mmin Sanitarll Service's 2007 Rate Applicatiou - Final Report Proposed Adjustucents A $38,317 decrease due to an adjustment for the difference between the 2006 percentage increase projected in 2005 (19.6%) and the 2006 percentage increase projected in 2006 (16.2%) of 3.4%. Again, due to the volatility of diesel fuel prices, the 30.1 % projected increase may over- or under -project actual fuel expenses for 2006. Adiustments to 2007 Proiected Expenses Wages (Line 14): HF&H recommends a $23,961 increase to wages, due to the following: A $23,961 increase to union pension for the difference between the index % (2.7%) for benefits used by MSS and the actual pension contribution increase per the CBA of 6.7%. Fuel Expenses (Line 16): HF&H recommends a $75,640 decrease in fuel expenses, due to the following: The $75,640 decrease in projected 2007 fuel expense due to the difference between MSS' calculations and HF&H's calculations. For the rate application, MSS calculated projected 2006 fuel expense by multiplying the annualized June YTD fuel expense by 1 plus the 29.4% change in the Consumer Price Transportation Index - Motor Fuel (All Urban Consumers) from July 2005 to July 2006. The projected rate per gallon was $3.78. Since the index used is based on July 2005 - July 2006 and the 2006 trended price includes the first seven months of 2006, there is a double -counting of the increase in fuel prices. HF&H calculated the 2007 fuel expense by taking the estimated 2007 gallons based on 2006 trends times the CPI adjusted rate per gallon of $3.08. Again, due to the volatility of diesel fuel prices, the projected decrease may over- or under - project actual fuel expenses. Maintenance (Line 17): HF&H recommends decreasing maintenance costs by $67,617, due to the following: • A $56,763 decrease for maintenance expenses for MRRC (non -franchised) included in the rate application in error; • A $25,680 increase for a 2005 credit included in the maintenance expenses in error; • A $36,534 decrease for extraordinary loader rental payments incurred during the first six months of 2006 that were erroneously double counted in the rate application. Depreciation/Lease (Line 18): HF&H recommends an $8,585 increase in depreciation expense, due to the following: • A $64,907 increase for assets not properly included in the fixed asset system; • A $1,013 increase for non-regulated equipment used in regulated operations; December 10,2006 Franchisors of hfarin Sanilmy Service Reviero of Marin Sanitary Service's 2007 Rate Application — Final Report Proposed Adjustments A $32,953 decrease to reflect the difference between the actual cost of the remaining 2006 purchases and the MSS projected costs; A $16,698 decrease to reflect the reduced cost of equipment to be purchased in 2007 based on the recent actual prices of equipment; • A $7,684 decrease for the non-regulated portion of depreciation for two G&A assets acquired in 2006. Other Operating/ G&A (Line 19): HF&H recommends decreasing other operating / G&A expenses by $196,473, due to the following: • An $89,052 decrease for extraordinary expenses incurred during the first six months of 2006 that were erroneously double counted in the rate application. • A $69,920 decrease in accounting fees incurred during the first six months of the year. Once again, the method MSS used for projecting the 2006 expenses creates the risk for one-time expenses during the first six months of the year being included twice. • A $ 37,502 decrease in travel and conferences/ training expenses relating to trips outside the local area. The adjustment reflects costs for additional people beyond the managers at the events. Profit (Line 22): HF&H recommends decreasing MSS' profit by $34,512 due to the adjustments recommended above. Interest Expense (Line 25): HF&H recommends decreasing interest expenses by $15,421 to exclude interest expense relating to non -franchised operations, to reflect MSS paying the line of credit down more than anticipated, and to exclude interest expense included by MSS twice. December 10,2006 Franchisors of rbMarin Sanitary Set vice Ririe Adjnstinent Reoiero of Marin Sanitary Seroice's 2007 Rate Application - Final Report SECTION V. RATE ADJUSTMENT Rate Adiustment Based on a revenue requirement of $20,319,501 for the calendar year 2007 resulting from our recommended adjustments to MSS' projected revenues, expenses, and profit (calculated based on a 90.5% operating ratio) and the inclusion of the City of San Rafael's vehicle impact fee, we recommend a rate increase of 8.1 %, effective January 1, 2007. The rate increase of 8.1 % results primarily from: 1) The anticipated increase in the landfill tip fee; 2) An increase in depreciation on new equipment for the dual -stream recycling program and replacement of existing aged fleet; and, 3) An increase in interest charges related to the new equipment purchases. The following table shows the components of the rate increase: Rate Increase Components Disposal 2.8% Depreciation 2.7% Interest 1.2 % Other Operating Costs 1.4% 8.1% The projected tip fee is expected to increase 15% ($44.37 to $51.00 per ton) over the current tip fee. The current disposal agreement between MSS and Redwood Landfill is set to expire in 2007. MSS has looked into alternative disposal sites and has not been successful in locating a more cost-effective site. Since the negotiations are not complete, it is recommended that the projections be adjusted in future reviews if the final negotiated rate is different from the $51 per ton used in the 2007 projections. New equipment purchases for the dual -stream recycling program were $2,826,345 in 2006 and are projected to be $1,538,533 in 2007. MSS is also replacing the older trucks in their fleet. After the 2006 purchases the average age of their fleet is still approximately 12 years old. Consistent with MSS' accounting policies, the assets are being depreciated over seven years. In 2006, MSS obtained bond financing through the California Pollution Control Financing Authority to purchase the new equipment. The interest rate on the bonds is 4.21 %. 10 December 10, 2006 Frani hisors of Marin Sanitaiy Service Rate Adjnstrnent Rrvicry of Marin Saidtary Service's 2007 Rate Application — Final Report Special Adiustments for San Rafael and Countv (RVSD) San Rafael In 2004, the City of San Rafael (City) pursued a legal resolution to the question of local authority over the provision of refuse collection and recycling services within the City limits. In February 2005, the Superior Court of the State of California, County of Marin, ruled in favor of the City of San Rafael. Effective March 1, 2005 customers with service areas within the Las Gallinas Valley Sanitary District (LGVSD) and also within the city limits of San Rafael (customers residing north of Puerto Suelo Ilill) were charged the existing City of San Rafael refuse rates. At the same time, MSS became subject to the higher franchise fees charged by the City than those charged by LGVSD. While revenues increased, they did not increase sufficiently to equal MSS' costs including the higher franchise fees. As part of the 2006 rate adjustment, an additional $729,000 was added to the revenue requirement for the impact of this transition. Of the $729,000 adjustment, $291,000 was a one-time adjustment to compensate MSS for expenses incurred, primarily franchise fees, in 2005. In the 2007 rate application, MSS properly accounted for the $291,000 and the result was a decrease of 2.3% to the Franchisors recommended rate increase of 8.1 %. The calculation of the decrease is included in Attachment 4. County (RVSD) On May 2, 2006, the Ross Valley Sanitary District Board requested the County of Marin accept and approve the transfer of the District's solid waste franchise agreements, both North and South areas, with MSS. The South area was part of the Franchisors group. On July 11, 2006, the Board of Supervisors accepted the transfer of the Ross Valley South Franchise Agreement and executed a new agreement with MSS effective immediately. Under the Ross Valley Sanitary District Agreement, MSS paid a flat franchise fee amount of $3,600 per year. Under the new agreement with the County, MSS is required to pay a franchise fee of 5% of gross receipts of all customers. The addition of a 5% franchise fee resulted in net addition of $59,962 in franchise fees. The additional franchise fees result in requiring a supplemental increase of 5.3% to the Franchisors recommended rate increase of 8.1%. The calculation of the increase is included in Attachment 4. 11 Dereinber 10,2006 Franchisors of Marin Satilmy Seruice RMero of Matin Satitfny Service's 2007 Rate Application - Final R6pod Bay Area Rate Survey Attachment 5 Attachment 5 Commercial Res. Sinele-Family Service Info Jurisdiction 30-3SGaL 60-64Gal. 90•%Gal. City of Alameda 5 23.75 5 39.65 S 55.38 City of Emeryville S 10.63 5 21.26 S 31.90 City of San Leandro S 18.48 S 30.76 $ 43.04 Oro Loma Sanitary District (L1 & L2) $ 1552 5 26.84 $ 37.36 Oro Loma Sanitary District (13) 5 17.01 5 29.42 5 41.83 City of Millbrae S 2027 $ 4054 $ 60.81 City of South San Francisco 5 19.47 5 38.94 S 58.41 Ctiy of Morgan Hill 217.82 5 N/A N/A 5 21.82 Cityof Cupertino _ S 18.66 5 3732 $ 55.98 City of Mountain View 5 15.00 S 30.00 S 45.00 City of Daly City S 16.40 S 32.80 5 49.20 Town of Atherton 5 23.68 5 4736 5 70.30 City of Belmont $ 20.17 5 41.25 5 63.25 City of Burlingame S 1292 5 25.84 S 38.35 City of Fast Palo Allo S 25.13 $ 5026 5 77.10 Fair Oaks 5 18.05 $ 18.05 5 36.10 City of Foster City 5 12.61 S 23.64 5 35.46 Town of Hillsborough S 23.23 5 46.46 $ 65.34 City of Menlo Park $ 9.17 S 2271 5 34.07 City of Redwood City 5 16.95 5 27.16 5 38.34 City of San Carlos $ 15.07 $ 3207 $ 47.61 City of San Mateo $ 11.07 5 2436 S 35.29 West Bay Sanitary District S 1523 $ 33.46 S 45.22 City of Albany $ 22.82 5 39.46 S 56.10 City of Berkeley 5 2258 S 45.14 5 67.69 City of Dublin, 5 1284 S 2358 $ 34.33 City of Fremont 5 2336 5 25.49 5 35.07 City of Hayward- 5 17.69 $ 3157 5 45.43 City of Livermore 5 13.08 5 23.77 $ 47.73 City of Newark S 1930 S 34.18 5 49.05 City of Oakland- 5 25.42 $ 55.02 $ 84.77 City of Piedmcmr $ 2050 N/A N/A City of Pleasanton* 5 2250 N/A 5 25.04 City of Union City S 27.86 S 55.73 $ 68.% City of Orinda S 19.82 S 39.64 S 59.46 City of Lafayette 5 17.18 S 34.36 5 51.54 Town of Moraga $ 1833 5 36.66 $ 54.99 City of Sunnyvale 5 21.71 $ 30.99 5 30.99 City of Walnut Creek 5 13.37 $ 26.74 S 40.11 Town of Danville S 1635 S 3270 S 49.05 City of Brisbane 5 15.87 5 31.74 $ 47.61 CCCSWA-Unincorporated 5 1635 $ 3270 S 49.05 City of Campbell S 18.46 5 36.91 5 55.37 Town of Los Gatos $ 17.88 $ 35.76 S 53.64 City of Monte Sereno 5 2288 5 45.77 5 68.65 City of Saratoga $ 19.83 5 39.67 $ 59.50 City of Milpitas Single N/A N/A $ 49.46 City of Fairfax 5 1820 5 36.40 S 54.60 City of San Anselmo $ 17.85 S 35.71 S 53.57 City of Belvedere $ 26.73 N/A $ 67.43 Town of Corte Madera $ 22.08 $ 4429 $ 66.47 City of Mill Valley $ 26-34 5 43.97 $ 61.58 Town of Tiburon $ 2521 5 45.86 $ 66.19 City of Richmond $ 25.81 5 49.26 $ 73.38 City of San Pablo 5 25.14 5 47.91 S 71.36 City. of El Cerrito 5 2522 $ 50.43 N/A City of Hercules $ 25.80 S 4551 S 65.83 City of Pinole $ 25.40 S 45.16 5 65.54 Unincorp: West Contra Costa S 27.44 5 5261 $ 78.37 City of San Rafael- $ 21.96 S 43.93 5 65.89 Las Gallinas- County- 5 19.30 5 3859 5 57.89 City of larkspur- 5 2223 S 44.45 5 66.68 City of Ross- S 2134 $ 4268 5 64.02 County(RVSD)••• $ 19.89 S 39.78 S 59.67 County- Marin Franchisor'sGroup- S 1924 5 38.48 $ 57.73 Attachment 5 Attachment 5 Cfty Average $ 1957 5 36.66 5 5255 5 104.07 $ 289.79 $ 261.81 5 760.76 yi-weekly, Multiple Sort S 2274 S 41.25 $ 61.64 $ 115.91 S 30729 $ 273.10 $ 767.43 [,All arin Franchisor's Average 5 20.66 S 41.32 5 61.98 5 146.13 S 421.49 S 265.68 5 740.01 Information obtained through the Alameda County Waste Management Authority July 2006 Rate and Service Survey "San Rafael rates increased 59%. "'County (RVSD) rates adjusted 133%. -Marin Franchisors Group have been adjusted for 8.1 % increase to be effective 1/1/07. As of 11/11/2006 except Marin Franchisors Group. Commercial Service Info 1YD Bin SYD Bin 3YD Bin 3YD Bin Ix/week 3x/week Ix/week 3x/week Rec. Freq. YW Freq. Sort 5 89.94 $ 27521 5 269.82 S 825.63 Weekly Weekly Single 5 62.68 5 188.06 5 188.06 S 564.17 Weekly Weekly Single 5 81.05 S 239.76 5 239.76 5 719.29 Bi -weekly Weekly Single S 71.99 5 187.10 $ 191.74 $ 537.08 Bi -weekly Weekly Single 5 81.77 5 21254 $ 217.82 5 610.12 Bi -weekly Weekly Single S 168.80 5 516.60 $ 311.04 $ 951.90 Weekly Bi -weekly Multiple 5 118.69 5 356.07 S 266.97 $ 800.90 Weekly Bi -weekly Multiple N/A N/A $ 245.46 5 689.45 Bi -weekly Weekly Multiple $ 8830 5 18928 5 189.23 5 289.68 Weekly Weekly Single 5 67.80 5 230.65 $ 20335 S 637.75 Bi -weekly Bi -weekly Single 5 117.47 5 352.41 5 32244 5 96732 Bi -weekly Bi -weekly Multiple 5 99.00 $ 297.00 5 297.00 $ 891.00 Bi -weekly Bi -weekly Multiple 5 96.69 S 292.97 $ 290.06 5 881.78 Bi -weekly Bi -weekly Multiple 5 8154 S 254.40 5 244.62 S 763.20 Bi -weekly Bi -weekly Multiple 5 154.19 5 359.03 5 325.77 S 830.66 Bi -weekly Bi -weekly Multiple 5 7624 5 228.72 $ 228.72 5 686.17 Bi -weekly Bi -weekly Multiple S 60.49 5 181.47 S 181.47 5 544.41 Bi -weekly Bi -weekly Multiple 5 7322 $ 219.65 $ 219.65 S 658.94 Bi -weekly Bi -weekly Multiple $ 59.12 5 184.45 5 17736 S 577.95 Bi -weekly Bi -weekly Multiple 5 7552 S 22655 $ 22655 S 679.68 Bi -weekly Bi -weekly Multiple S 66.% $ 208.92 S 200.88 $ 626.75 Bi -weekly Bi -weekly Multiple 5 74.03 5 228.61 $ 22209 5 685.82 Bi -weekly Bi -weekly Multiple 5 98.61 5 229.64 S 208.39 $ 53131 Bi -weekly Bi -weekly Multiple 5 90.99 5 272.98 5 27298 $ 818.93 Weekly Weekly Single 5 9244 5 291.19 $ 27731 S 87355 Weekly Bi -weekly Mulbple 5 54.% 5 19224 $ 164.88 S 52200 Weekly Weekly Single $ 63.90 S 18335 5 143.66 $ 423.09 Weekly Weekly Single S 7295 S 20359 $ 193.26 5 53933 Weekly Weekly Multiple S 61A7 S 63.93 5 184.40 $ 58756 Weekly Weekly Single $ 75.67 5 209.01 $ 200.20 5 545.99 Weekly Weekly Single 5 118.46 5 377.01 $ 31058 S 978.97 Weekly Weekly Single $ 114.75 $ 31638 S 344.25 5 94854 Weekly Weekly Single $ 94.69 5 247.79 S 27039 S 729.69 Weekly Bi -weekly Duty MRF S 84.91 5 234517 $ 22250 S 60635 Weekly Weekly Single S 11650 5 34950 5 34950 5 1,048.50 Weekly Weekly Single 5 110.07 5 33021 5 330.21 $ 990.63 Weekly Weekly Single 5 11283 5 338.49 $ 338.49 5 1,015.47 Weekly Weekly Single S 94.76 $ 268.47 $ 199.88 S 583.82 Weekly Weekly Split -cart S 60.00 $ 180.00 $ 180.00 S 540.00 Weekly Weekly Single 5 11272 S 338.16 $ 338.16 S 1,014.48 Weekly Weekly Single 5 123.30 $ 369.90 5 223.03 $ 6&4.11 Weekly Bi -weekly Multiple $ 10425 $ 312.75 $ 31275 5 938.25 Weekly Weekly Single $ 93.91 5 284.41 S 187.82 5 568.82 Weekly Weekly Single S 104.68 5 317.15 S 20937 S 63429 Weekly Weekly Single 5 13254 S 401.47 5 265.09 5 80295 Weekly Weekly Single 5 12856 S 38958 5 257.12 S 779.16 Weekly Weekly Single S 61.19 5 135.75 5 133.10 $ 345.65 Weekly Weekly Multiple 5 106.90 5 250.75 $ 253.35 S 656.30 Weekly Bi -weekly Multiple N/A N/A $ 29285 $ 87856 Weekly Bi -weekly Multiple 5 13272 S 36535 N/A N/A Weekly Bi -weekly Multiple 5 103.48 $ 278.86 N/A N/A Weekly Bi -weekly Multiple $ 11663 $ 313.94 N/A N/A Weekly Bi -weekly Multiple $ 119.82 S 327.03 N/A N/A Weekly Bi -weekly Multiple S 180.30 S 458.97 5 413.85 $ 1,136.19 Weekly Bi -weekly Single 5 19277 $ 491.72 $ 451.46 5 1,242% Weekly Bi -weekly Single 5 156.05 N/A N/A N/A Weekly Bi -weekly Single 5 203.40 5 51730 $ 473.80 5 1,301.93 Weekly Bi -weekly Single $ 19245 $ 49097 S 45059 S 1,240.27 Weekly Bi -weekly Single $ 15271 5 465.99 S 419.85 5 1,15355 Weekly Bi -weekly Single 5 141.77 5 433.49 S 27133 5 770.14 Weekly Bi -weekly Multiple 5 13824 5 414.97 $ 279.68 5 78051 Weekly Bi -weekly Multiple 5 140.94 S 42271 5 26297 5 74231 Weekly Bi -weekly Multiple N/A N/A $ 274.20 S 82249 Weekly Bi -weekly Multiple 5 16357 S 414.78 S 253.02 $ 66438 Weekly Bi -weekly Multiple N/A N/A 5 25286 5 66025 Weeklv Br -weekly Multiple Cfty Average $ 1957 5 36.66 5 5255 5 104.07 $ 289.79 $ 261.81 5 760.76 yi-weekly, Multiple Sort S 2274 S 41.25 $ 61.64 $ 115.91 S 30729 $ 273.10 $ 767.43 [,All arin Franchisor's Average 5 20.66 S 41.32 5 61.98 5 146.13 S 421.49 S 265.68 5 740.01 Information obtained through the Alameda County Waste Management Authority July 2006 Rate and Service Survey "San Rafael rates increased 59%. "'County (RVSD) rates adjusted 133%. -Marin Franchisors Group have been adjusted for 8.1 % increase to be effective 1/1/07. As of 11/11/2006 except Marin Franchisors Group. N CO OCO n I YI II,,,P ull° 4 11 IJ I 00�£ OR ,4111 „ l c j IoiI,,,W� l NI JI w I ��IIIp Iapll hI'I"fiwI leI �4 �I, IIII 1"I wIN'y,� wI It ,, ip1 �IIIJ P �m�dl idol` �' 1 I i I I I I N GI I I LO row°«dlVillilihil'VPPtlI"inlll,,',IfwIIII PUlpuy1111I�du/ co co Y Hh,rr I III O r.d V C'4 i' 41m�YRrI Ilu �I �� SII �/ Imli N a 1j v II 'r li1� 11� IN fllq vu Ip II II hvj, ° iu p�Pyl Il�l�bp I'PP�IPV! NIYI hlllllrl„�Vu!IVv wll�l', r.., f� d I(" ^I'lulp ',II rr�Ivlvl�IdIu111Y dv,� �dua NI I S OO n I YI II,,,P ull° 4 11 tl;uow lad $ I I InP4 O U .�4 w O U a U I IJ 00�£ w1 4., N VI X , 1 °` w I ��IIIp Iapll hI'I"fiwI leI �4 �I, IIII 1"I wIN'y,� wI It ,, ip1 �IIIJ P �m�dl idol` �' N m Y� IN! r p1 idi°1� 1PiIdN'el GI I I I co co Hh,rr III w i' 41m�YRrI Ilu �I �� SII �/ Imli N II II hvj, ° iu p�Pyl Il�l�bp I'PP�IPV! NIYI hlllllrl„�Vu!IVv wll�l', �dua NI .! S OO :d O O O S O to O to O to OIN cq fa � � � � tl;uow lad $ I I InP4 O U .�4 w O U a U I W14011:111111 To City of San Rafael Staff Report dated January 16, 2007 $ 43.92 $ 41.52 MARIN SANITARY SERVICE 2.40 5.8% Compacted 64 gallon CITY OF SAN RAFAEL RATE SCHEDULE 83.04 Rates Effective: 01/01/2007 5.8% Distance 5'-50' 2.86 Rate Increase: 5.8% 0.15 5.5% Distance over 50' (per 50' each can) 2007 2006 2007 2007 5.7% Proposed RATE INCREASE % INCR. Rate Senior rate - flat** (Bi -weekly service) $ Residential $ 14.65 $ 0.85 5.8% Standard Base Rates 19.75 18.67 32 gallon can - flat $ 21.96 $ 20.76 $ 1.20 5.8% 64 gallon can - flat 43.92 41.52 2.40 5.8% 96 gallon can - flat 65.88 62.28 3.60 5.8% 32 gallon can - hill 24.88 23.52 1.36 5.8% 64 gallon can - hill 49.76 47.04 2.72 5.8% 96 gallon can - hill 74.64 70.56 4.08 5.8% Low Income Rates* $ 21.96 $ 20.76 $ Low Income - 32 gallon can - flat $ 17.54 $ 16.58 $ 0.96 5.8% Low Income - 64 gallon can - flat 35.08 33.16 1.92 5.8% Low Income - 96 gallon can - flat 52.62 49.74 2.88 5.8% Low Income - 32 gallon can - hill 19.92 18.83 1.09 5.8% Low Income - 64 gallon can - hill 39.84 37.66 2.18 5.8% Low Income - 96 gallon can - hill 59.76 56.49 3.27 5.8% 'Must meet Federal HUD Voucher Standards. 74.64 70.56 Residential customers only 4.08 5.8% '**Rates are per container, per # of pickups/wk Other Services Compacted 32 gallon $ 43.92 $ 41.52 $ 2.40 5.8% Compacted 64 gallon 87.84 83.04 4.80 5.8% Distance 5'-50' 2.86 2.71 0.15 5.5% Distance over 50' (per 50' each can) 5.78 5.47 0.31 5.7% Discontinued Rates" Senior rate - flat** (Bi -weekly service) $ 15.50 $ 14.65 $ 0.85 5.8% Senior rate - hill** (Bi -weekly service) 19.75 18.67 1.08 5.8% "*Customers with these rates prior to 2005 will keep existing rate type. No new customers wil be added with this rate type. Apartments 32 gallon can - flat $ 21.96 $ 20.76 $ 1.20 5.8% 64 gallon can - flat 43.92 41.52 2.40 5.8% 96 gallon can - flat 65.88 62.28 3.60 5.8% 32 gallon can - hill 24.88 23.52 1.36 5.8% 64 gallon can - hill 49.76 47.04 2.72 5.8% 96 gallon can - hill 74.64 70.56 4.08 5.8% '**Rates are per container, per # of pickups/wk "'Minimum of one can per unit 1/10/2007 1 of 6 San Rafael - Exhibit B for staff report 4:1:11:3 Y i =? 1/10/2007 2 of 6 San Rafael - Exhibit B for staff report To City of San Rafael Staff Report dated January 16, 2007 MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% 2007 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate Apartments (cont) FL 2 yd bin 1 x/week $ 208.46 $ 197.03 $ 11.43 5.8% FL 2 yd bin 2 x/week 477.82 451.63 26.19 5.8% FL 2 yd bin 3 x/week 723.28 683.63 39.65 5.8% FL 2 yd bin 4 x/week 973.08 919.74 53.34 5.8% FL 2 yd bin 5 x/week 1,227.26 1,159.98 67.28 5.8% FL 2 yd bin 6 x/week 1,485.78 1,404.33 81.45 5.8% FL 3 yd bin 1 x/week $ 271.33 $ 256.46 $ 14.87 5.8% FL 3 yd bin 2 x/week 497.26 470.00 27.26 5.8% FL 3 yd bin 3 x/week 755.71 714.28 41.43 5.8% FL 3 yd bin 4 x/week 1,020.68 964.73 55.95 5.8% FL 3 yd bin 5 x/week 1,292.20 1,221.36 70.84 5.8% FL 3 yd bin 6 x/week 1,570.25 1,484.17 86.08 5.8% FL 4 yd bin 1 x/week $ 387.09 $ 365.87 $ 21.22 5.8% FL 4 yd bin 2 x/week 713.37 674.26 39.11 5.8% FL 4 yd bin 3 x/week 1,083.06 1,023.69 59.37 5.8% FL 4 yd bin 4 x/week 1,461.54 1,381.42 80.12 5.8% FL 4 yd bin 5 x/week 1,814.85 1,715.36 99.49 5.8% FL 4 yd bin 6 x/week 2,244.64 2,121.59 123.05 5.8% FL 5 yd bin 1 x/week $ 418.70 $ 395.75 $ 22.95 5.8% FL 5 yd bin 2 x/week 828.77 783.34 45.43 5.8% FL 5 yd bin 3 x/week 1,259.51 1,190.46 69.05 5.8% FL 5 yd bin 4 x/week 1,701.14 1,607.88 93.26 5.8% FL 5 yd bin 5 x/week 2,153.66 2,035.60 118.06 5.8% FL 5 yd bin 6 x/week 2,617.09 2,473.62 143.47 5.8% FL 6 yd bin 1 x/week $ 490.72 $ 463.82 $ 26.90 5.8% FL 6 yd bin 2 x/week 994.53 940.01 54.52 5.8% FL 6 yd bin 3 x/week 1,511.41 1,428.55 82.86 5.8% FL 6 yd bin 4 x/week 2,041.37 1,929.46 111.91 5.8% FL 6 yd bin 5 x/week 2,584.40 2,442.72 141.68 5.8% FL 6 yd bin 6 x/week 3,140.50 2,968.34 172.16 5.8% RL 1 yd bin 1 x/week $ 136.62 $ 129.13 $ 7.49 5.8% RL 1 yd bin 2 x/week 275.42 260.32 15.10 5.8% RL 1 yd bin 3 x/week 416.40 393.57 22.83 5.8% RL 1 yd bin 4 x/week 559.56 528.88 30.68 5.8% RL 1 yd bin 5 x/week 704.89 666.25 38.64 5.8% RL 1 yd bin 6 x/week 852.41 805.68 46.73 5.8% (No longer offered to new customers) 1/10/2007 2 of 6 San Rafael - Exhibit B for staff report 1/10/2007 3 of 6 San Rafael - Exhibit B for staff report To City of San Rafael Staff Report dated January 16, 2007 MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% 2007 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate Apartments (cont.) RL 2 yd bin 1 x/week $ 209.02 $ 197.56 $ 11.46 5.8% RL 2 yd bin 2 x/week 418.17 395.25 22.92 5.8% RL 2 yd bin 3 x/week 633.81 599.06 34.75 5.8% RL 2 yd bin 4 x/week 853.80 806.99 46.81 5.8% RL 2 yd bin 5 x/week 1,227.26 1,159.98 67.28 5.8% RL 2 yd bin 6 x/week 1,485.78 1,404.33 81.45 5.8% FL Compacted Rate Per Yard $ 52.29 per yard $ 49.42 $ 2.87 5.8% 1/10/2007 3 of 6 San Rafael - Exhibit B for staff report 4 IM 1/10/2007 4 of 6 San Rafael - Exhibit B for staff report To City of San Rafael Staff Report dated January 16, 2007 MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% 2007 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate Commercial 32 gallon can $ 21.83 $ 20.63 $ 1.20 5.8% 64 gallon can 43.66 41.26 2.40 5.8% 96 gallon can 65.49 61.89 3.60 5.8% Compacted 32 gallon 43.66 41.26 2.40 5.8% Compacted 64 gallon 87.32 82.52 4.80 5.8% Bags (32 gallon) 21.83 20.63 1.20 5.8% ***Rates are per container, per # of pickups/wk FL 2 yd bin per pickup $ 52.90 $ 50.00 $ 2.90 5.8% FL 2 yd bin 1 x/week 208.46 197.03 11.43 5.8% FL 2 yd bin 2 x/week 478.91 452.66 26.25 5.8% FL 2 yd bin 3 x/week 726.55 686.72 39.83 5.8% FL 2 yd bin 4 x/week 979.62 925.92 53.70 5.8% FL 2 yd bin 5 x/week 1,238.16 1,170.28 67.88 5.8% FL 2 yd bin 6 x/week 1,502.13 1,419.78 82.35 5.8% FL 3 yd bin per pickup $ 64.94 $ 61.38 $ 3.56 5.8% FL 3 yd bin 1 x/week 271.33 256.46 14.87 5.8% FL 3 yd bin 2 x/week 505.26 477.56 27.70 5.8% FL 3 yd bin 3 x/week 770.14 727.92 42.22 5.8% FL 3 yd bin 4 x/week 1,043.20 986.01 57.19 5.8% FL 3 yd bin 5 x/week 1,324.44 1,251.83 72.61 5.8% FL 3 yd bin 6 x/week 1,613.84 1,525.37 88.47 5.8% FL 4 yd bin per pickup $ 95.03 $ 89.82 $ 5.21 5.8% FL 4 yd bin 1 x/week 387.09 365.87 21.22 5.8% FL 4 yd bin 2 x/week 715.55 676.32 39.23 5.8% FL 4 yd bin 3 x/week 1,089.60 1,029.87 59.73 5.8% FL 4 yd bin 4 x/week 1,474.62 1,393.78 80.84 5.8% FL 4 yd bin 5 x/week 1,765.92 1,669.11 96.81 5.8% FL 4 yd bin 6 x/week 2,277.33 2,152.49 124.84 5.8% FL 5 yd bin per pickup $ 101.31 $ 95.76 $ 5.55 5.8% FL 5 yd bin 1 x/week 418.70 395.75 22.95 5.8% FL 5 yd bin 2 x/week 842.09 795.93 46.16 5.8% FL 5 yd bin 3 x/week 1,283.58 1,213.21 70.37 5.8% FL 5 yd bin 4 x/week 1,738.67 1,643.36 95.31 5.8% FL 5 yd bin 5 x/week 2,207.39 2,086.38 121.01 5.8% FL 5 yd bin 6 x/week 2,689.74 2,542.29 147.45 5.8% 1/10/2007 4 of 6 San Rafael - Exhibit B for staff report EXHIBIT B To City of San Rafael Staff Report dated January 16, 2007 MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% Commercial (cont) FL 6 yd bin per pickup FL 6 yd bin 1 x/week FL 6 yd bin 2 x/week FL 6 yd bin 3 x/week FL 6 yd bin 4 x/week FL 6 yd bin 5 x/week FL 6 yd bin 6 x/week RL 1 yd bin 1 x/week RL 1 yd bin 2 x/week RL 1 yd bin 3 x/week RL 1 yd bin 4 x/week RL 1 yd bin 5 x/week RL 1 yd bin 6 x/week (No longer offered to new customers) 2,086.41 RL 2 yd bin 1 x/week RL 2 yd bin 2 x/week RL 2 yd bin 3 x/week RL 2 yd bin 4 x/week RL 2 yd bin 5 x/week RL 2 yd bin 6 x/week FL Compacted Rate Per Yard RO 10 yd box per pickup RO 10 yd box 1 x/week RO 10 yd box 2 x/week RO 10 yd box 3 x/week RO 10 yd box 4 x/week RO 10 yd box 5 x/week RO 10 yd box 6 x/week RO 12 yd box per pickup 1/10/2007 2007 $ $ $ $ $ 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate 115.51 $ 109.18 $ 6.33 5.8% 497.08 469.83 27.25 5.8% 1,010.51 955.11 55.40 5.8% 1,540.29 1,455.85 84.44 5.8% 2,086.41 1,972.03 114.38 5.8% 2,648.87 2,503.66 145.21 5.8% 3,227.68 3,050.74 176.94 5.8% 141.77 $ 134.00 $ 7.77 5.8% 286.27 270.58 15.69 5.8% 433.49 409.73 23.76 5.8% 583.44 551.46 31.98 5.8% 736.11 695.76 40.35 5.8% 891.51 842.64 48.87 5.8% 214.72 $ 202.95 $ 11.77 5.8% 434.88 411.04 23.84 5.8% 660.50 624.29 36.21 5.8% 891.57 842.69 48.88 5.8% 1,238.16 1,170.28 67.88 5.8% 1,502.13 1,419.78 82.35 5.8% 52.29 per yard $ 49.42 $ 2.87 5.8% 164.56 $ 155.54 $ 9.02 5.8% 700.59 662.18 38.41 5.8% 1,433.71 1,355.11 78.60 5.8% 2,200.29 2,079.67 120.62 5.8% 2,999.12 2,834.71 164.41 5.8% 3,830.65 3,620.65 210.00 5.8% 4,694.86 4,437.49 257.37 5.8% 197.48 $ 186.65 $ 10.83 5.8% 5 of 6 San Rafael - Exhibit B for staff report EXHIBIT B To City of San Rafael Staff Report dated January 16, 2007 MARIN SANITARY SERVICE CITY OF SAN RAFAEL RATE SCHEDULE Rates Effective: 01/01/2007 Rate Increase: 5.8% 2007 2006 2007 2007 Proposed RATE INCREASE % INCR. Rate Commercial (cont) RO 18 yd box per pickup $ 296.22 $ 279.98 $ 16.24 5.8% RO 18 yd box 1 x/week 1,258.36 1,189.38 68.98 5.8% RO 18 yd box 2 x/week 2,575.58 2,434.39 141.19 5.8% RO 18 yd box 3 x/week 3,951.64 3,735.01 216.63 5.8% RO 18 yd box 4 x/week 5,386.55 5,091.26 295.29 5.8% RO 18 yd box 5 x/week 6,880.30 6,503.12 377.18 5.8% RO 18 yd box 6 x/week 8,432.91 7,970.61 462.30 5.8% RO 20 yd box per pickup $ 329.13 $ 311.09 $ 18.04 5.8% RO 20 yd box 1 x/week 1,398.19 1,321.54 76.65 5.8% RO 20 yd box 2 x/week 2,861.76 2,704.88 156.88 5.8% RO 20 yd box 3 x/week 4,390.71 4,150.01 240.70 5.8% RO 20 yd box 4 x/week 5,985.05 5,656.95 328.10 5.8% RO 20 yd box 5 x/week 7,644.78 7,225.69 419.09 5.8% RO 20 yd box 6 x/week 9,369.89 8,856.23 513.66 5.8% RO 25 yd box per pickup $ 411.41 $ 388.86 $ 22.55 5.8% RO 25 yd box 1 x/week 1,955.88 1,848.66 107.22 5.8% RO 25 yd box 2 x/week 4,003.29 3,783.83 219.46 5.8% RO 25 yd box 3 x/week 5,901.58 5,578.05 323.53 5.8% RO 25 yd box 4 x/week 8,044.41 7,603.41 441.00 5.8% RO 25 yd box 5 x/week 10,275.26 9,711.97 563.29 5.8% RO 25 yd box 6 x/week 12,594.02 11,903.61 690.41 5.8% RO Compacted Rate Per Yard $ 52.29 $ 49.42 $ 2.87 5.8% Lock Charges - single pickup $ 3.19 $ 3.02 $ 0.17 5.6% Lock Charges - weekly pickup 14.49 13.70 0.79 5.8% Compacted refuse w/o recyclables 52.29 49.42 2.87 5.8% Compacted refuse with recyclables 43.08 40.72 2.36 5.8% Refuse per yard - per pickup 20.20 19.09 1.11 5.8% Box Rental - 1 yard 42.77 40.43 2.34 5.8% Box Rental - 2 yard 48.13 45.49 2.64 5.8% Box Rental - 3-5 yard 53.25 50.33 2.92 5.8% Box Rental - 6 yard 60.17 56.87 3.30 5.8% Box Rental - 10 yard 70.99 67.10 3.89 5.8% Box Rental - 18 yard 142.28 134.48 7.80 5.8% Box Rental - 20 yard 144.37 136.46 7.91 5.8% Box Rental - 25 yard 150.43 142.18 8.25 5.8% Return Trip Charge 31.31 29.59 1.72 5.8% Steam Clean Bin Charge 62.73 59.29 3.44 5.8% Overweight Charge Per Ton' 117.96 111.49 6.47 5.8% "'Comm'I boxes exceeding 300lbs/yard 1/10/2007 6 of 6 San Rafael - Exhibit B for staff report