HomeMy WebLinkAboutCM Marin Sanitary Service Rates for 2020____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 12/16/2019
Disposition: Resolution 14751
Agenda Item No: 5.a
Meeting Date: December 16, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager’s Office
Prepared by: Cory Bytof,
Sustainability Program Manager
City Manager Approval: __________
TOPIC MARIN SANITARY SERVICE RATES FOR 2020
SUBJECT RESOLUTION ESTABLISHING MAXIMUM RATES COLLECTED BY MARIN
SANITARY SERVICE FOR REFUSE AND RECYCLABLE MATERIAL
COLLECTION AND DISPOSAL SERVICES, TO BE EFFECTIVE JANUARY
1, 2020
RECOMMENDATION
Adopt a resolution establishing maximum rates collected by Marin Sanitary Service for Refuse
and Recyclable Material Collection and Disposal Services, to be effective January 1, 2020.
EXECUTIVE SUMMARY
This report details the rate adjustment proposal for 2020 necessary for Marin Sanitary Service to
provide refuse, recycling, and organic materials composting, hauling, and processing for
customers (“rate payers”) in San Rafael. Rate payers include residential homeowners, apartment
owners, commercial property owners, and other businesses and tenants. The proposed rate
adjustment would increase rates by 4.85% over 2019 levels for all rate payers. It includes
adjustments based on an agreed-upon rate-setting methodology the City has with Marin Sanitary
Service and is based upon an independent third-party review of expenses and revenues by R3
Consulting Group, Inc. (R3). In addition, this report proposes a new Illegal Dumping Pilot Program
with Marin Sanitary Service that, if approved, comprises .53% of the total proposed rate
adjustment of 4.85%.
BACKGROUND
Each year, the City Council holds a public hearing to set the maximum collection rates that can
be charged by Marin Sanitary Service (MSS) in the City of San Rafael. These rates are based
on a specific methodology contained in the Franchise Agreement the City has with MSS. This
methodology was changed last year when the Council adopted the third amendment to the
Franchise Agreement with Marin Sanitary Service. The Background section of this report will
provide the overall context of the rate-setting process, the changes that occurred in the Franchise
Agreement, the services Marin Sanitary Service provides in San Rafael, and the Illegal Dumping
Pilot Program.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Franchise Agreement and Franchisors’ Group
Article XI of the California Constitution and the California Public Resources Code allows cities to
regulate refuse and recycling services and to collect a franchise fee from any provider of such
services. MSS is our sole provider of refuse hauling and recycling services and performs these
services in many surrounding communities as well. These services are pursuant to a Franchise
Agreement between the City and MSS, which outlines the services that must be provided by MSS
as well as a methodology to be followed to set customer rates each year.
Several jurisdictions in Marin that have similar agreements with MSS joined together as the Marin
Franchisors’ Group to share information and reduce costs. These jurisdictions are: City of San
Rafael, City of Larkspur, Town of Ross, the Las Gallinas Valley Sanitary District, and the County
of Marin, including within the Ross Valley Sanitary District boundaries. The Marin Franchisors’
Group (“Franchisors”) meets several times per year to oversee MSS’s operations and works
together to conduct a single annual rate review analysis rather than each jurisdiction having to
conduct and pay for a separate review.
Our current Franchise Agreement is the “Third Amendment to the Amendment and Restatement
of Collection Agreement of the City of San Rafael with Marin Sanitary Service” and was adopted
by Council in 2018. The amendment was one several outcomes of a 2-year process of analysis
and negotiations with MSS, which also included the following:
1. Replaced the Recycling Reserve Fund with a net processing fee structure that allows
MSS an annually adjusted processing fee minus revenues from the sale of recyclable
materials. This new method of calculating recycling in the annual rate application includes
an incentive for MSS to seek the best prices for selling the materials, while also providing
a mechanism to ensure revenues help offset customer rates when markets are good.
2. Includes a substantially streamlined and simplified annual rate adjustment
methodology. The new methodology sets rates based on set revenues due to MSS,
which are escalated annually based on one simple Water, Sewer, and Trash (WST) index,
which has increased between 2 to 5% annually in recent years. This places more incentive
on MSS to live within the regulated revenue amount.
3. Removes all true-up provisions from the previous method of calculating rates, other
than those negotiated for three years to amortize past recycling losses to the company.
4. Includes a 2.5% minimum and a 5% maximum rate cap for MSS’ operational expenses.
This excludes franchise/agency fees and the cost of processing, recycling, composting
and disposal, however, the latter of which are not subject to MSS control.
In total, these changes are intended to provide more stable and predictable rates, continued
verifiable high levels of service, and a simplified and cost-effective rate-setting methodology that
also improves accuracy and transparency. This rate-setting report, conducted by R3 Consulting
Group, Inc. (R3) is the first rate review using the new methodology.
Marin Sanitary Service Programs and Services
MSS provides residential, commercial and multi-family refuse services, including garbage,
recycling and organics (composting) collection and processing. MSS also provides garbage and
recycling pick-up for City facilities, parks, and all sidewalk receptacles downtown and throughout
San Rafael. MSS is a key partner in the City’s environmental goals as well as the City and
County’s Zero Waste Goals. MSS conducts the majority of the outreach for the City for the State’s
Mandatory Commercial Recycling and Mandatory Composting laws (AB 341, AB 1826, and soon
SB 1383), which place requirements on businesses to recycle and compost, and requires annual
monitoring and notifications to non-compliant businesses. MSS also has a robust community
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
outreach and education program, and they conduct numerous programs and community offerings,
including an annual free compost giveaway and customer education event. All their services
including a new “Where Does it Go, Joe recycling lookup feature can be found on their new
website: https://marinsanitaryservice.com/
Changes in the Industry
First, recognizing the negative impacts of organic materials decomposing in landfills on climate
change, the State of California has started mandating that businesses of certain thresholds
compost their organic materials. The State will soon mandate that all residents and businesses
compost their organic waste in the coming years (AB 1826 and SB 1383). Additionally, the State
may also place new requirements on local governments to implement, monitor and enforce
participation in organic waste programs. In addition, there continues to be a depression in the
recycling commodities markets, resulting in losses for recyclers throughout the State.
ANALYSIS
This section will outline the rationale for the two items under consideration:
A. The rate adjustment for 2020
B. A recommended Illegal Dumping Pilot Program
A. Rate Adjustment for 2020
Over the past ten years rate adjustments for San Rafael have ranged from less than one percent
to over 10% with an average of 5.82% annually. Last year’s adjustment, using the old
methodology, was 9.39% and included some legacy true-ups and recycling losses. In the past
few years many Bay Area cities have experienced rate adjustments in the double digits, including
more than 50% in Piedmont, Windsor and Santa Rosa. These increases are the result of many
factors, including a growing amount of solid waste, recycling, and compostable materials
generated by residents and businesses, increasing costs of processing recyclables and
compostable materials, decreasing value of recyclable materials, and increasing costs of labor in
a constrained labor market.
Attachment B shows R3’s independent third-party review of Marin Sanitary Service’s 2020 Rate
Application and breaks down the areas impacting the rates as an average for the Franchisors’ as
a whole. The table below shows the Rate Increase Factors for San Rafael for 2020, including the
staff recommended Illegal Dumping Pilot Program.
Table 1. 2020 Rate Increase Factors, San Rafael
Collector Operations 2.13%
Garbage Landfilling and Organics Processing 0.83%
Other (Government Fees, Interest, Change in
Law) 0.62%
Recyclable Materials Processing 0.43%
Profit 0.31%
Pilot Illegal Dumping Program 0.53%
Total 4.85%
Collector Operations comprised the majority of the rate adjustment and was calculated using the
Consumer Price Index (CPI) for Water, Sewer and Trash Collection. The second highest factor
included the costs of processing recyclables and organics and the disposing of waste. All told,
the new rate setting methodology has been effective in keeping rate increases below 5%. Note
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
that some of the increase this year is due to legacy true-ups in Fuel and Oil and Garbage
Landfilling and Organics Processing that will sunset in 2021. Staff also anticipates new expenses
related to changes in State law that will be mandating additional organics recycling via Assembly
Bill (AB) 1826 and Senate Bill (SB) 1383. Staff will be working with MSS in the coming year as
the SB 1383 regulations are finalized to better understand these impacts and efficient ways to
address the mandates.
R3 reviewed the application and all relevant documents and financial schedules with MSS and
recommends an increase of 4.85% to the City of San Rafael’s rates in 2020 with the addition of
the illegal dumping pilot. This would result in an increase of $2.01 per month for a residential 32
gallon cart, which is the most common cart size, totaling $43.37. For the most common
commercial size there would be an increase of $24.78 per month for a 3 yard bin totaling $535.73.
Recycling is included in all accounts and customers can reduce their regular landfill container size
or pickup schedule resulting in lower rates.
R3 conducted a survey of Bay Area refuse haulers as part of the rate review, included in
Attachments 3, 4, and 5 of their Report. It summarizes the survey data for residential 30-35 gallon
can weekly service with curbside recycling and organics pickup. Note though, that proposed 2020
rates are not available for other jurisdictions yet, so this summary compares proposed San Rafael
2020 rates to other jurisdictions’ 2019 actual rates, which will certainly increase. Using this
comparison San Rafael’s rates are slightly higher than other Bay Area jurisdictions. However, it
is also important to note that all jurisdictions provide different services and levels of services,
making apples-to-apples comparisons problematic. San Rafael’s rates have traditionally been
comparable with rates in other Bay Area jurisdictions, while often providing more services.
As in previous years, staff is recommending that the rate adjustment be applied across the board
to all residential, multi-family and commercial service accounts. Actual rates for all services are
provided as Exhibit C, an attachment to the Resolution included with this report.
B. Recommended Illegal Dumping Pilot Program
Illegal dumping has been a persistent and costly problem for San Rafael, and the City receives
over 200 complaints every year from residents and businesses alike. The Department of Public
Works estimates the annual fiscal impact to the City of approximately $250,000 including staff
time and disposal associated with illegal dumping. The Streets Division generally spends one
full day each week collecting and disposing of illegally dumped items. Illegal dumping not only
affects the City’s budget and staff resources but is a health and quality of life issue for everyone
in San Rafael. This issue is not unique to San Rafael, and some cities such as Oakland spend
upwards of $5.5 million per year.
The City has done a great deal to try to abate the problem, including changing parking
alignment on Windward Way, removing trash cans, putting up signage and surveillance
cameras, conducting outreach, and adjusting days and times for removal of illegal dumping.
MSS has also been assisting and cleans up Jacoby Street, which gets a lot of after-hours
dumping, a minimum of once per month. In the end, our resources are limited, and we need
new tools to address the issue.
In late 2017 a Together San Rafael team formed to address illegal dumping using a formal
cross-departmental approach comprising staff from Police, Public Works, and Sustainability
utilizing a Human Centered Design (HCD) approach. Through initial research the Team
identified three key areas of action necessary for success: 1) education and community
engagement, 2) infrastructure and universal access to disposal, and 3) enforcement. Through
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
interviews and surveys the Team identified some early actions that were rolled out in 2018 and
2019:
1. Developed a new protocol for reporting and following up on illegal dumping reports
such that Police got notified when it was criminal activity, and more pedestrian level
dumping, like what happens outside apartment complexes when residents set items out
on the street or sidewalk, was routed to Public Works. This included a new public-facing
web page with tools and information.
2. Developed Crime Prevention Through Environmental Design (CPTED) outreach
collateral that could be given to businesses to learn how to protect their property from
unwanted dumping.
3. Developed a mini-grant pilot program for businesses in East San Rafael that offered up
to $1,000 to a business that wished to utilize a CPTED strategy they hadn’t previously
employed, such as installing surveillance cameras and signage, or upgrading lighting
around the building.
4. Began hosting bulky waste collection and recycling events (example) in the Canal
Neighborhood to offer options for multifamily building residents to dispose of their
unwanted items properly, while gathering research data into the problem and potential
solutions. This included direct mailings to all residents and apartment managers in the
Canal with information about the illegality of putting items on the street and the proper
means of disposal. This pilot was mostly paid for through our Zero W aste grants.
5. Increased enforcement: Public Works started issuing warnings and administrative
citations to apartment owners who regularly had dumped items around their property,
and Police stepped up their efforts to make contact with people who were reported to
have dumped items on the public right-of-way.
This combination of engagement, enforcement, and disposal opportunities resulted in a
noticeable decrease in items picked up in the Canal Neighborhood by Public Works in 2019
(see Attachment D - Illegal Dumping Pilot Report). However, there is still a need to develop a
long-term solution that is resource-efficient and cost-effective. There are limited enforcement
resources due to the other pressing issues that Police and Public Works face, and there are
limited funds and use cases for the Zero Waste Grants. In addition, this pilot only addressed
one neighborhood in San Rafael and relied heavily on an intern who has since moved on.
Although illegal dumping has been reduced in the Canal Neighborhood since the Together San
Rafael pilot program, it is still a prevalent concern in many other areas of San Rafael including
the East San Rafael Business District. Currently, only single-family residential accounts have
bulky waste disposal options as part of their curbside pickup of trash, recycling, and
composting. Adding this to over 400 multi-family complexes and hundreds of businesses in San
Rafael would entail a significant rate increase. This new pilot aims to test some more cost-
effective options to increase access to safe and easy disposal for multifamily building tenants
and business owners.
The Illegal Dumping Pilot Program proposal aims to do 3 things:
1. Test a voucher program for multi-family residents whereby they can utilize a voucher
once or twice per year to dispose of unwanted bulky items when they need to dispose of
them as opposed to on a specific day. This flexibility is critical as research we conducted
over this past year revealed that many times people need to replace an item or move
and get rid of items and don’t have the luxury/availability of storing them until a local
bulky waste collection event. The voucher program will also help determine actual costs
vs. the collection events to see which is more useful and cost-effective.
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2. Test a commercial coupon program that offers businesses that have experienced
illegal dumping on their property the ability to dispose of it at a free or reduced cost. The
initial proposal has been to offer this once or twice per year when the business owner or
manager reports the dumping, which would allow for the City to follow up and provide
them with a CPTED flyer and opportunity to apply for a mini-grant to further protect their
property. Results from early research showed that businesses who employed CPTED
strategies saw dramatically lower prevalence of illegal dumping on their property once
implemented.
3. Continue the bulky waste disposal events in the Canal Neighborhood but on a
quarterly basis. This will allow us to continue to partner with the Mattress Recycling
Council, which has committed to help us up to four (4) times a year at no cost. It will also
allow us to gather more data through in-person surveys and engagements and gauge
people’s familiarity with the coupon program.
The intention is for the City and MSS to use the pilot, further research, and community
engagement to develop a longer term or permanent solution that is sustainable, equitable, and
efficient. The City would continue current increased enforcement and business mini-grant
programs as well.
R3 has conducted an analysis of the costs in Attachment C. This pilot would begin with an
engagement with local and statewide entities focused on finding solutions to illegal dumping
along with other community partners. The City would engage a local consulting firm specializing
in developing metric-based outreach campaigns to provide assistance with pilot design and
testing. Best practices in behavior change social science combined with Human Centered
Design would be utilized to ensure a rigorous pilot and confidence in the results and future
recommendations. This approach combines research into what works in other places along with
grounded local research to craft the right approach for local conditions.
R3 estimates costs for this pilot program to be a maximum of $100,000, and the engagement
would be pursued as a not-to-exceed that amount. This adds .53% to this year’s rate adjustment
as shown in Table 1 above and is included in the staff recommendation as Option 1 below.
Option 2 below is the rate adjustment without the additional .53% for the Illegal Dumping Pilot
Program.
COMMUNITY OUTREACH
Notice of the public hearing was published twice in the Marin Independent Journal (Attachment
B) and emailed to all names on file with the City Clerk and City Manager’s Office. Information on
the maximum annual rate that MSS can collect is available at the City Clerk’s office during the 10
days prior to the public hearing. The proposed rate information is also provided directly to the San
Rafael Chamber of Commerce, the Business Improvement District, Marin Builder’s Association,
and other interested parties.
FISCAL IMPACT
The attachment to the Resolution (Exhibit C) contains the complete rate request as a combined
document with two Options. Option 1 is the staff recommended Option with an overall increase of
4.85%. Option 2 is the rate request without the Illegal Dumping Pilot Program with an overall
increase of 4.32%. Exhibit C will be revised and finalized with the Option that is adopted by the
City Council . If approved, the rates would be applied to all customer types and service options
and satisfies the City’s contractual obligations to meet the MSS revenue requirement to cover
costs for San Rafael refuse and recycling services, including franchise fees. Increasing MSS’s
rates will result in slight increases to the franchise fees paid by MSS to the City.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
OPTIONS
1. Adopt a resolution establishing maximum rates collected by Marin Sanitary Service for
Refuse and Recyclable Material Collection and Disposal Services, to be effective January
1, 2020 with an increase of 4.85% over 2019 rates, or
2. Adopt a resolution establishing maximum rates collected by Marin Sanitary Service for
Refuse and Recyclable Material Collection and Disposal Services, to be effective January
1, 2020 without the addition of an Illegal Dumping Pilot Program for a total increase of
4.32% over 2019 rates, or
3. Do not adopt a resolution establishing maximum rates collected by Marin Sanitary Service
for Refuse and Recyclable Material Collection and Disposal Services, to be effective
January 1, 2020 at this time and direct staff to come back with more information.
RECOMMENDED ACTION
Adopt a resolution establishing maximum rates collected by Marin Sanitary Service for Refuse
and Recyclable Material Collection and Disposal Services, to be effective January 1, 2020 with
an increase of 4.85% over 2019 rates.
ATTACHMENTS
Attachment A: Resolution with Exhibit C Rate Schedule
Attachment B: R3 Review of Marin Sanitary Service’s 2020 Rate Application
Attachment C: R3 Memo for Illegal Dumping Pilot Program
Attachment D: Illegal Dumping Pilot Report 2019
Attachment E: Affidavit of Publication
1
RESOLUTION NO. 14751
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ESTABLISHING MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE
FOR REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL
SERVICES, TO BE EFFECTIVE JANUARY 1, 2020
WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into an
“Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin
Sanitary Service,” dated September 4, 2001 and amended by a written first amendment dated
March 1, 2005, a written second amendment dated November 14, 2012, and a written third
amendment dated February 25, 2019 (hereafter the “Franchise Agreement”); and
WHEREAS, Section 3 (B) of the Franchise Agreement provides for maximum rates allowed
to be collected by Marin Sanitary Service, to be amended from time to time by the City Council; and
WHEREAS, Exhibit "C" of the Franchise Agreement provides for approved rate schedules,
as amended by the City Council from time to time, to be included as part of the Collection
Agreement; and
WHEREAS, Marin Sanitary Service has submitted a rate application request using the
methodology outlined under Section 3 (A) of the Franchise Agreement; and
WHEREAS, the City of San Rafael has conducted a review of said rate application and
produced a report recommending rate and fee adjustments; and
WHEREAS, on December 16, 2019 the City Council held a duly noticed public hearing to
consider the rate application request and receive public testimony thereon; and
WHEREAS, the City of San Rafael has determined that such rate and fee adjustments are
proper, in the best interest of all citizens, and will promote public health, safety and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES
RESOLVE, DETERMINE AND ORDER AS FOLLOWS: The schedule of maximum rates and fees
attached hereto as "Exhibit C" and incorporated herein by reference, is hereby approved to be
collected by Marin Sanitary Service for refuse and recyclable material collection and disposal
services, at an increased rate of 4.85% from 2019, to be effective January 1, 2020. Said “Exhibit
C” shall be incorporated as the revised Exhibit "C" to the Franchise Agreement.
I, Lindsay Lara, City Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council
of the City of San Rafael, held on Monday, the 16th of December 2019, by the following vote, to wit:
2
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
CITY OF SAN RAFAEL
EXHIBIT C - SCHEDULE OF RATES
RESIDENTIAL REFUSE COLLECTION RATES
Rate increase:4.85%
Effective date:01/01/2020
Weekly Service Rates (Billed Quarterly)
Monthly Rate Quarterly Rate Monthly Rate Quarterly Rate
20 gallon cart $36.87 $110.61 $41.75 $125.25
32 gallon cart $43.37 $130.11 $49.12 $147.36
64 gallon cart $86.74 $260.22 $98.24 $294.72
96 gallon cart $130.11 $390.33 $147.36 $442.08
Low income - 20 gal* cart $29.50 $88.50 $33.40 $100.20
Low income - 32 gal* cart $34.70 $104.10 $39.30 $117.90
Low income - 64 gal* cart $69.39 $208.17 $78.59 $235.77
Low income - 96 gal* cart $104.09 $312.27 $117.89 $353.67
Senior rate**Discontinued $30.62 $91.86 $38.98 $116.94
Additional Organics Cart Rental $2.31 $6.93 $2.31 $6.93
(35 or 64 gallon cart)
Additional Split Cart Rental $2.31 $6.93 $2.31 $6.93
(64 or 96 gallon cart)
Additional Monthly Charges Monthly Fee Quarterly Fee
(per cart, each way)
Distance 5' - 50'$5.63 $16.89
Distance Over 50'$11.39 $34.17
Additional Service Fees per Occurrence 2020 Fee
Return Fees - Off day $25.00
Return Fees - Same day $10.00
Resume Service/Late Fee $35.00
Contamination (cart) any size cart $30.00
Overload/Overweight (cart)$25.00
Extra bag garbage $15.00
Extra bag yard waste $10.00
Steam Clean (cart)$15.00
Special Collection $35.00
Special Handling (Bulky items)$30.00
Bulky item fees per item Fees Vary
Cart Strap Set-up Admin Fee $25.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
*Must meet PG&E CARE program eligibility requirements.
**Customers with these rates prior to 2005 will keep the existing rate type. No new customers will be added with this rate type.ONE TIME SERVICE FEES REOCCURING CHARGES
Residential Service (Bundled service includes 1 landfill (garbage) cart, 1 organics cart, & 1 recycling split cart )
2020 Flat rate 2020 Hill Rate
NOTE: We may not be able to accommodate any collection requests NOT at the curb due to a variety of factors including safety, accessibility, and
efficiency. Requests to be assessed and approved by Route Manager.
CITY OF SAN RAFAEL
EXHIBIT C - SCHEDULE OF RATES
COMMERCIAL REFUSE COLLECTION RATES
Rate increase:4.85%
Effective date: 01/01/2020
COMMERCIAL CARTS, BINS, ROLL-OFFS
Garbage 1 2 3 4 5 6
20 gallon cart*$36.87 $73.74 $110.61 $147.48 $184.35 $221.22 $8.51
32 gallon cart $43.07 $86.14 $129.21 $172.28 $215.35 $258.42 $9.94
64 gallon cart $86.14 $172.28 $258.42 $344.56 $430.70 $516.84 $19.88
96 gallon cart $129.21 $258.42 $387.63 $516.84 $646.05 $775.26 $29.82
1 yard bin $279.93 $565.25 $855.92 $1,152.05 $1,453.47 $1,760.28 $64.60
2 yard bin $411.58 $945.65 $1,434.60 $1,934.30 $2,444.76 $2,965.97 $94.98
3 yard bin $535.73 $997.62 $1,520.68 $2,059.80 $2,615.13 $3,186.57 $123.63
4 yard bin $764.27 $1,412.84 $2,151.46 $2,911.69 $3,486.86 $4,496.63 $176.37
5 yard bin $826.73 $1,662.69 $2,534.49 $3,433.03 $4,358.58 $5,310.95 $190.78
6 yard bin $981.48 $1,995.23 $3,041.35 $4,119.67 $5,230.25 $6,373.14 $226.50
10 yard roll-off $1,383.34 $2,830.92 $4,344.50 $5,921.81 $7,563.71 $9,270.12 $319.23
18 yard roll-off $2,484.63 $5,085.55 $7,802.62 $10,635.86 $13,585.31 $16,650.99 $573.38
20 yard roll-off $2,760.78 $5,650.60 $8,669.55 $11,817.59 $15,094.79 $18,501.06 $637.10
25 yard roll-off $3,861.89 $7,904.57 $11,652.79 $15,883.89 $20,288.75 $24,867.17 $891.21
Organics (F2E or Compost)1 2 3 4 5 6
Additional One
Time Empty
32 gallon $17.86 $35.72 $53.58 $71.44 $89.30 $107.16 $4.12
64 gallon $35.72 $71.44 $107.16 $142.88 $178.60 $214.32 $8.24
1 yard $125.00 $250.00 $375.00 $500.00 $625.00 $750.00 $28.85
2 yard $250.00 $500.00 $750.00 $1,000.00 $1,250.00 $1,500.00 $57.69
3 yard $375.00 $750.00 $1,125.00 $1,500.00 $1,875.00 $2,250.00 $86.54
10 yard roll-off $968.34 $1,936.68 $2,905.02 $3,873.36 $4,841.70 $5,810.04 $223.46
18 yard roll-off $1,743.01 $3,486.02 $5,229.03 $6,972.04 $8,715.05 $10,458.06 $402.23
20 yard roll-off $1,936.68 $3,873.36 $5,810.04 $7,746.72 $9,683.40 $11,620.08 $446.93
25 yard roll-off $2,420.85 $4,841.70 $7,262.55 $9,683.40 $12,104.25 $14,525.10 $558.66
Garbage Compactors (Per empty)
Roll-off Compactor Tipping fee per ton $118.89 Roll-off Compactor Hauling charge $267.23
Stationary FL (Per Compacted Yard) $103.26 Roll-off Compactor Special handling Rates Vary
Service Fee Details
Lock $25.00 Monthly fee
Box rental Fees Vary Minimum Bimonthly fee
Distance < 50ft $5.63 Monthly fee per cart, each way
Distance > 50ft $11.39 Monthly fee per cart, each way
Commercial Service Fees Fee
Return Fee - BIN $75.00
Return Fee - CART -same day $10.00
Return Fee - CART -off day $25.00
Late Fee/Resume Service Fee $35.00
Contamination (BIN) $50.00
Contamination (CART) $30.00
Overload/Compaction (BIN) $60.00
Overload/Compaction (CART) $25.00
Extra Bag Garbage $15.00
Additional Empty BIN Fees vary
Extra Bag Yard Waste $15.00
Steam Clean (1-6 yard BIN) $95.00
Steam Clean (CART) $15.00
Steam Clean (COMPACTOR/ROLL-OFF) $225.00
Lock Set-up Admin Fee $25.00
Lock Single Use Fee $5.00
Lock Purchase Fee $20.00
Lock Bar Bin Set-up Fee $75.00
Overweight Charge Per Ton* $205.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
Bin Repair/Replacement Fee**Fees vary
*(Boxes exceeding 300lbs/yard)
**Fees vary by size up to $1,200, not to exceed current replacement value.ONE TIME SERVICE FEES REOCCURING CHARGES
Collections per Week Additional One
Time Empty
Other Charges
* Customers must have a sufficient level of service for the volume of material generated. Requests for 20gal carts require assessment and approval of a Route Manager.
NOTE: All container types and sizes may not be available at all locations depending on a variety of factors including safety, accessibility, and
efficiency. Requests to be assessed and approved by Route Manager.
CITY OF SAN RAFAEL
EXHIBIT C - SCHEDULE OF RATES
MULTI-FAMILY DWELLING REFUSE COLLECTION RATES
Rate increase: 4.85%
Effective date: 01/01/2020
MFD CARTS, BINS, ROLL-OFFS
Garbage 1 2 3 4 5 6
20 gallon cart*$36.87 $73.74 $110.61 $147.48 $184.35 $221.22 $8.51
32 gallon cart $43.37 $86.74 $130.11 $173.48 $216.85 $260.22 $10.01
64 gallon cart $86.74 $173.48 $260.22 $346.96 $433.70 $520.44 $20.02
96 gallon cart $130.11 $260.22 $390.33 $520.44 $650.55 $780.66 $30.03
32 gallon - hill $49.12 $98.24 $147.36 $196.48 $245.60 $294.72 $11.34
64 gallon - hill $98.24 $196.48 $294.72 $392.96 $491.20 $589.44 $22.67
96 gallon - hill $147.36 $294.72 $442.08 $589.44 $736.80 $884.16 $34.01
1 yard bin $269.75 $543.79 $822.19 $1,104.87 $1,391.85 $1,683.10 $62.25
2 yard bin $411.58 $943.47 $1,428.14 $1,921.38 $2,423.25 $2,933.71 $94.98
3 yard bin $535.73 $981.87 $1,492.19 $2,015.40 $2,551.51 $3,100.49 $123.63
4 yard bin $764.27 $1,408.55 $2,138.52 $2,885.84 $3,583.43 $4,432.05 $176.37
5 yard bin $826.73 $1,636.45 $2,486.93 $3,358.92 $4,252.47 $5,167.53 $190.78
6 yard bin $968.95 $1,963.75 $2,984.32 $4,030.72 $5,102.96 $6,200.99 $223.60
10 yard roll-off $1,383.34 $2,830.92 $4,344.50 $5,921.81 $7,563.71 $9,270.12 $319.23
18 yard roll-off $2,484.63 $5,085.55 $7,802.62 $10,635.86 $13,585.31 $16,650.99 $573.38
20 yard roll-off $2,760.78 $5,650.60 $8,669.55 $11,817.59 $15,094.79 $18,501.06 $637.10
25 yard roll-off $3,861.89 $7,904.57 $11,652.79 $15,883.89 $20,288.75 $24,867.17 $891.21
Organics 1 2 3 4 5 6
Additional One
Time Empty
Additional Organics Cart Rental $2.31 $4.62 $6.93 $9.24 $11.55 $13.86 NA
(35 gallon cart) after 4 TOTAL carts per cart per
month
Additional Organics Cart Rental $2.31 $4.62 $6.93 $9.24 $11.55 $13.86 NA
(64 gallon cart) after 4 TOTAL carts per cart per
month.
1 yard $125.00 $250.00 $375.00 $500.00 $625.00 $750.00 $28.85
2 yard $250.00 $500.00 $750.00 $1,000.00 $1,250.00 $1,500.00 $57.69
3 yard $375.00 $750.00 $1,125.00 $1,500.00 $1,875.00 $2,250.00 $86.54
Garbage Compactors (Per empty)
Roll-off Compactor Tipping fee per ton $118.89 Roll-off Compactor Hauling charge $267.23
Stationary FL (Per Compacted Yard) $103.26 Roll-off Compactor Special handling Rates Vary
Service Fee Details
Lock $25.00 Monthly fee
Box rental Fees Vary Minimum Bimonthly fee
Distance < 50ft $5.63 Monthly fee per cart, each way
Distance > 50ft $11.39 Monthly fee per cart, each way
MFD One Time Service Fees Fee
Return Fee - BIN $75.00
Return Fee - CART -same day $10.00
Return Fee - CART -off day $25.00
Late Fee/Resume Service Fee $35.00
Contamination (BIN) Per Yard $50.00
Contamination (CART) $30.00
Overload/Compaction (BIN) $60.00
Overload/Compaction (CART) $25.00
Additonal Empty Bag $15.00
Extra Bag Yard Waste $10.00
Additional Empty Garbage Fees vary
Steam Clean (BIN) $95.00
Steam Clean (CART) $15.00
Steam Clean (COMPACTOR/ROLL-OFF) $225.00
Lock Set-up Admin Fee $25.00
Lock Single Use Fee $5.00
Lock Purchase Fee $20.00
Lock Bar Bin Set-up Fee $75.00
Overweight Charge Per Ton*$205.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
Bin Repair/Replacement Fee**Fees vary by
size up to
$1,200*(Boxes exceeding 300lbs/yard)
**Fees vary by size not to exceed current replacement value.
NOTE: All container types and sizes may not be available depending on a variety of factors including safety, accessibility, and efficiency. Requests to be assessed and approved by
Route Manager.
NOTE: Minimum service level is 32 gallons per unit or equivalent volume. Decrease to 20 gallon per unit is subject to company review and approval.
NOTE: Up to four (4) Organics carts provided at no additional charge. Additional carts may be rented for a nominal monthly fee. REOCCURING CHARGESCollections per Week Additional One
Time Empty
Other Charges ONE TIME SERVICE FEES
www.r3cgi.com
Northern California Office
1512 Eureka Road, Suite 220, Roseville, CA 95661
Tel: 916-782-7821 | Fax: 916-782-7824
San Francisco Bay Area Office
2600 Tenth Street, Suite 424, Berkeley, CA 94710
Tel: 510-647-9674
December 2, 2019
Ms. Cristine Alilovich
Assistant City Manager
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94919
Mr. Ernest Klock
Assistant Director
County of Marin
Department of Public Works
3501 Civic Center Drive, Suite 304
San Rafael, CA 94903
Mr. Robert Ruiz
300 Smith Ranch Road
San Rafael, CA 94903
Administrative Services Manager
Las Gallinas Valley Sanitary District
Mr. Dan Schwarz
City Manager
City of Larkspur
400 Magnolia Avenue
Larkspur, CA 94939
Mr. Joe Chinn
Town Manager
Town of Ross
31 Sir Francis Drake Blvd
Ross, CA 94957
Subject: Review of Marin Sanitary Service’s 2020 Rate Application, Draft Report
Dear Ms. Alilovich, Mr. Klock, Mr. Ruiz, Mr. Schwarz and Mr. Chinn,
R3 Consulting Group, Inc. (R3) is pleased to submit this Draft Report detailing the results of our review of
Marin Sanitary Service’s (MSS’s) 2020 rate application for the Marin Franchisors’ Group (MFG, comprised
of the City of San Rafael, County of Marin, Las Gallinas Valley Sanitary District, City of Larkspur and the
Town of Ross). This Report summarizes results from an indexed year review of MSS’s 2020 rate application
per the new streamlined rate setting methodology. The new methodology is described in the amended
Exhibit B to the Franchise Agreement, ratified by MFG during the 2019 Rate Application process.
Marin Sanitary Application for 2020 Rate Adjustment
On August 27, 2019, MSS submitted its application for an overall 4.80% increase to its solid waste rates,
to be effective January 1, 2020 (Attachment 1). This is an indexed year rate adjustment, which primarily
projects compensation due to MSS based on the applicable CPI Index (WST). Per Exhibit B, the rate
adjustment is subject to a 2.5% minimum and a 5% maximum rate cap for MSS’ operational expenses.
Based on our review of the rate application, R3 determined that an overall rate increase of 4.26% (for the
Franchisors’ Group as a whole) is appropriate to compensate MSS for solid waste services. A summary of
the 2020 rate review process and outcomes is presented below.
CONSULTING GROUP, INC.
RESOURCES· RESPECT· RESPONSIBIL I TY
Marin Franchisors’ Group
Review of Marin Sanitary Service’s 2020 Rate Application
December 2, 2019
Page 2 of 7
Table 1
2020 Rate Increase Factors
Collector Operations 2.08%
Garbage Landfilling and Organics Processing 0.82%
Other (Government Fees, Interest, Change in Law) 0.64%
Recyclable Materials Processing 0.42%
Profit 0.31%
Total 4.26%
Indexed Operating Expenses
Per Exhibit B, Collector Operations expenses are adjusted using the CPI index for Water and Sewer and
Trash Collection. R3 used Bureau of Labor Statistics data to verify the calculated increase of 3.31% from
June the prior year, and its application to the approved Rate Year 2019 Collector Operations amount for
MSS. The result is $24,582,830 in Collector Operations expenses for Rate Year 2020.
Collector Operations expenses consist of labor, benefits, general and administrative, depreciation and
lease, maintenance, fuel and oil. Additional operating expense true-ups for 2019 – 2021 are discussed
further on in this Report, and are not increased annually with other Collector Operations expenses.
Tipping Fee Expenses
Garbage Landfilling and Organics Processing expenses are calculated using 2020 projected tonnages
multiplied by the 2020 tipping fees calculated in accordance with Exhibit B (i.e., the actual per ton tipping
fees for each waste stream category, or if unavailable, projected tipping fees are calculated using the
current year per ton tipping fees escalated by the change in WST— subject to a minimum increase of 2.5%
and a maximum increase of 5.0%).
R3 verified MSS’ projected Rate Year 2020 Franchisors’ Group tons and the per ton tipping fees for the
following categories: residential garbage, residential green waste/organics, commercial garbage,
commercial mixed waste for processing, commercial food scraps, and Franchisors’ Group waste delivered
to MSS. Per Exhibit B, R3 confirmed that MSS correctly projected tons by category using annualized actual
tons for the first six months of the current rate year and, as actual tipping fees are unavailable, applied
the 3.31% WTS adjustment to project 2020 per ton tip fees. The result is $4,393,631 for Rate Year 2020.
True-ups Applicable for 2020 Rate Year
Per Exhibit B, fuel and disposal true-ups apply only to the rate revenue requirements for Rate Years 2019,
2020, and 2021, in the amount of $98,074. No further revenue for prior true-ups will be collected via the
rates or due to MSS.
Fuel and Oil True-up
R3 verified the Fuel and Oil True-up was appropriately applied and in the correct amount: $80,477.
Garbage Landfilling and Organics Processing True-up
R3 verified the Garbage Landfilling and Organics Processing True up was appropriately applied and in the
correct amount: $17,598.
Marin Franchisors’ Group
Review of Marin Sanitary Service’s 2020 Rate Application
December 2, 2019
Page 3 of 7
Change in Law AB 1826 Expenses
The rate setting methodology allows for the recovery of additional costs associated with changes in law
and/or new state mandates. For increased operating expenses due to AB 1826 Mandatory Commercial
Organics Recycling, MSS has included its rate application a new line item called Change in Law – AB 1826
Costs in the amount of $90,150. MSS expects this line item will continue to be present in future rate
applications to reflect the annual incremental costs associated with state mandates.
MSS anticipates the enrollment of approximately 200 customers for new organics recycling services over
the next 12 months. To supplement its rate application, MSS submitted a breakdown of AB 1826 expenses
for increased driver wages and benefits, truck operating costs and cart purchases, in total representing
0.30% of the overall 4.80% rate increase request. R3 evaluated AB 1826 expenses with MSS, and with the
exception of $12,500 for Recollect and Recyclist software subscriptions, determined that these additional
costs are best handled once actual costs are known. As it is difficult to guarantee that the additional route
and cart costs will be substantially incurred in 2020, these costs were removed from the calculated 2020
rate adjustment.
MSS 2020 Profit Calculation
R3 reviewed the calculation of MSS’s profit, which is a function of total allowable operating expenses
($29,087,036), divided by the contractually set operating ratio of 90.5% and subtracting the same sum,
rounded to the nearest dollar. For Rate Year 2020 this yields $3,053,335. MSS’s actual profit achievement
will vary depending on the company’s real revenues and expenses. As such, profit is not guaranteed and
in the rate application is a calculated value component of MSS’s annual revenue requirement for the
purpose of setting rates.
Recyclable Materials Processing Expenses
A net recyclable materials processing cost is calculated each year to share the risks and rewards of
recycling markets between rate payers and MSS. Per Exhibit B, the Recyclable Materials Processing cost is
escalated by the annual change in the WST and that amount is then divided by the number of all tons of
recyclable materials processed at Marin Recycling Center from July 1 of the prior rate year through June
30 of the current rate year. The recyclable materials revenue amount is calculated based on 90% of the
total revenue received by the Marin Recycling Center for recyclable materials, which is then divided by
the number recyclable material tons processed at Marin Recycling Center. The calculation does not
include income or tons from recyclable materials processed for third parties or agencies that were not
customers of MSS or the Marin Recycling Center as of December 31, 2018. For Rate Year 2020, the
resulting Net Recyclable Materials Processing Cost Per Ton is $49.27.
R3 reviewed supporting documentation for completeness and accuracy to verify the $838,280 net
Recyclables Materials processing expense for Rate Year 2020. This is based on 17,014 tons of recyclable
materials collected from MFG and the net recyclable materials processing cost per ton of $49.27. The per
ton rate is significantly higher than the prior rate year’s $40/ton, as MSS continues to experience lower
revenues and higher processing costs due to China’s National Sword policy.
Marin Franchisors’ Group
Review of Marin Sanitary Service’s 2020 Rate Application
December 2, 2019
Page 4 of 7
Recycling Losses Applicable for 2020 Rate Year
Recycling losses only apply to the rate revenue requirements for Rate Years 2019, 2020, and 2021. Per
Exhibit B, $117,475 will be applied in those Rate Years to account for prior MSS losses on the processing
of recyclable materials. No further revenue from prior recycling losses will be collected via the rates or is
due to MSS.
Interest
Interest expense is based on MSS’s actual interest from its loan amortization schedules for actual and
projected capital expenditures for services under the Agreement. This expense is increased in the same
manner as Collector Operations, as described above. The amount for Rate Year 2020 is $559,045.
Zero Waste Marin Fees
Zero Waste Marin (JPA) Fees are calculated based on the amount of these fees in the current rate year
multiplied by the percentage increase in fees to be paid by MSS in the Rate Year. R3 reviewed the Zero
Waste Marin Fees included in MSS’s 2020 rate application ($446,260), and finding a difference in
interpretation of Exhibit B methodology, recalculated the amount: $399,588, a reduction of $46,672. R3
and MSS have discussed the calculation of Zero Waste Marin Fees, and MSS agrees with this adjustment.
Franchise Fees
Franchise Fees are calculated by multiplying the applicable franchise fee percentage by MFG member
agency by the revenues projected for each that Rate Year. Overall, $4,179,940 in franchise fees are to be
collected through the rates. This amount reflects R3’s adjustments made to the rate application.
Other Agency Fees
Other Agency Fees are calculated and applied to each MFG member agency per its Franchise Agreement
with MSS. R3 verified the $1,258,000 in Other Agency Fees for Rate Year 2020, and conferred with MSS
regarding an alternative handling of the County fees in Rate Year 2019. Since the County’s Vehicle Impact
Fee and Zero Waste Fee as represented in the rate application by MSS did not strictly align with the
Agreement methodology in the prior rate year, R3 recalculated the County’s rate increase for Rate Year
2020 (and by extension the overall MFG rate revenue adjustment calculation) due to making the
corresponding adjustment to the Total 2019 Rate Revenue Requirement for County fees. No additional
revenue is due to MSS; other MFG member agencies are not impacted by this adjustment.
Rate Revenue Requirement and Total Rate Adjustment
MSS’s total rate revenue requirement for Rate Year 2020 is $39,492,699. R3 verified the correct
calculation of MSS’s total rate revenue requirement overall for MFG and individually by member agency
to account for the varying franchise fees and other agency fees for each member. The resulting Rate
Adjustment Factor for MFG overall is 4.26%.
Marin Franchisors’ Group
Review of Marin Sanitary Service’s 2020 Rate Application
December 2, 2019
Page 5 of 7
Figure 1, below, shows a breakout of the overall 2020 revenue requirement for MFG. To show “what’s in
the rates?” expense categories have been summarized into four main categories: collector operations,
garbage landfilling and organics processing, recyclable materials processing, and all other.
Figure 1
What’s in the rates?
2020 Rate Increase Calculation
Based on a total recommended 2020 adjusted rate revenue requirement of $39,492,699 and approved
2019 revenue requirement of $37,878,752, R3 calculated and recommends an overall 4.26% rate increase
for the Franchisors’ Group, effective January 1, 2020, and with individual increases by agency as shown in
Attachment 2. Table 2 summarizes, by agency, the current and proposed 32-gallon residential rates, which
is the most common subscription level in the Franchisors’ Group service area.
Table 2
Residential 32-Gallon Rate Summary
Jurisdiction Current 2019
Rate ($/mo.)
Proposed 2020
Rate ($/mo.) $ Difference
City of San Rafael $41.36 $43.15 $1.79
City of Larkspur $47.12 $49.00 $1.88
County of Marin $47.18 $49.17 $1.99
Las Gallinas Valley Sanitary District $37.79 $39.45 $1.66
Town of Ross $39.60 $41.36 $1.76
Collector
Operations
70%
Garbage
Landfilling and
Organics
Processing
11%
Recyclable
Materials
Processing
3%
Other
16%
Marin Franchisors’ Group
Review of Marin Sanitary Service’s 2020 Rate Application
December 2, 2019
Page 6 of 7
Survey of Comparable Rates
Attachment 3 shows the results of R3's survey of solid waste rates as of November 2019 for agencies
located throughout the Bay Area. For the purpose of comparing the Franchisors’ Group rates to other
agencies in Attachments 3, 4, and 5 we have applied the 2020 rate increases for MSS served agencies and
compare those 2020 rates to the current 2019 rates for all other agencies.
It is anticipated that rates for other agencies will also increase in 2020, and since this comparison uses
2020 rates for the Franchisors’ Group, the rate comparison will become more favorable as other entities
adopt increased rates.
Figure 2 shows a summary of Marin rates for residential customers with 30-35 gallon garbage service. Bars
shown in blue are 2019 rates for Mill Valley Refuse Service; purple is the 2019 rate for Tamalpais
Community Services District; red are 2019 rates for Recology Marin (and are artificially low because of
prior contract with the Ratto Group and proximity to Redwood Landfill); orange are proposed 2020 MSS
rates for non-Franchisors’ Group agencies, which are anticipated for adoption soon, and; green are
proposed 2020 MSS rates for Franchisors’ Group agencies. Overall, the Franchisors’ Group 2020 rates
compare favorably to the Marin County average, especially for the levels of high-quality services provided
by MSS.
Figure 2
Marin County Rates: MSS 2020 Proposed Residential 32-gal Can compared to Current 2019 30-35-gal
Can Rates and Marin County Average of $44.08
The Franchisors’ Group 2020 residential rates for a 32-gallon container (the most frequent residential
service level) will range from $39.45 (Las Gallinas Valley Sanitary District) to $49.17 (County of Marin).
$-
$10
$20
$30
$40
$50
$60
Monthly Rate--------
I -
Marin Franchisors’ Group
Review of Marin Sanitary Service’s 2020 Rate Application
December 2, 2019
Page 7 of 7
Attachment 4 graphically compares the Franchisors’ Group 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’ Group commercial rates for a 3-cubic yard bin serviced 1 time per week (the most
requested commercial service level) range from $530.96 (Town of Ross) to $624.81 (City of Larkspur). The
average rate for the Franchisors’ Group is $565.74 while the average for Marin County is $534.57.
Attachment 5 compares the Franchisors’ Group commercial rates for a 3-cubic yard bin serviced one time
per week to the average Marin County rate and all other agencies' average rate for similar service levels.
These survey results are presented as an indication of the reasonableness of the resulting rates for 2020.
Conclusions should not be immediately drawn from this information because rate comparisons are
intrinsically difficult and often misleading. This results from differences in issues such as those listed
below:
▪ The types and ranges of services provided;
▪ The level of subscription to solid waste services by residential, commercial, and industrial
customers;
▪ The ratio of residential to commercial and industrial customers;
▪ The terrain in which the service is performed;
▪ Disposal, transfer and process costs, and amounts per capita;
▪ Rate structures; and
▪ Governmental fees (e.g., franchise fees, vehicle impact fees, etc.).
* * * * * * *
R3’s appreciates the opportunity to be of service to the Marin Franchisors’ Group. Should you have any
questions regarding this Report or need any additional information, please contact me by phone at (510)
647-9674 or by email at gschultz@r3cgi.com.
Sincerely,
R3 CONSULTING GROUP
Mr. Garth Schultz | Principal Ms. Emily Ginsburg | Senior Project Analyst
Marin Franchisor's San Rafael Larkspur County LGVSD RossGroup TotalPercentage of Total Operating Revenue 100.00% 63.53% 15.97% 9.93% 8.50%2.08%Collector Operations24,582,830 15,616,693 3,925,215 2,440,608 2,089,016 511,299 Fuel and Oil True‐up180,477 51,124 12,850 7,990 6,839 1,674 Garbage Landfilling and Organics Processing 4,393,631 2,791,135 701,544 436,204 373,365 91,383 Garbage Landfilling and Organics True‐up117,598 11,179 2,810 1,747 1,495 366 Change in Law ‐ AB 1826 Costs 90,150 57,269 14,395 8,950 7,661 1,875 Subtotal for Profit Calculation29,164,686 18,527,400 4,656,814 2,895,499 2,478,376 606,597 Collector Profit (90.5% Operating Ratio) 3,061,486 1,944,865 488,837 303,947 260,161 63,676 Recyclable Materials Processing 838,280 532,533 133,851 83,225 71,236 17,435 Recycling Losses1117,475 74,628 18,758 11,663 9,983 2,443 Interest 559,045 355,144 89,264 55,503 47,507 11,628 Zero Waste Marin Fees 446,260 283,495 71,256 44,305 37,923 9,282 Franchise Fees 4,195,552 2,462,407 669,687 799,055 152,905 111,498 Other Agency Fees 1,258,000 443,600 568,400 246,000 ‐ ‐ Annual Rate Revenue Reconciliation2Total 2020 Rate Revenue Requirement 39,640,784 24,624,072 6,696,867 4,439,197 3,058,091 822,559 Total 2019 Rate Revenue Requirement 37,826,662 23,513,906 6,417,488 4,192,327 2,918,411 784,531 2020 Rate Revenue Adjustment 4.80% 4.72% 4.35% 5.89% 4.79% 4.85%1Applicable for 2020 & 2021 Rate Years only.2Beginning with 2021 Rate YearMarin Sanitary ServiceMarin Franchisors' Group Rate ApplicationCOLLECTOR'S RATE REVENUE REQUIREMENT AND RATE ADJUSTMENTINDEXED YEAR ‐ RATE YEAR 2020MFG Rate Calculation 2020Rate Adjustment Calculation11/11/2019Proposed 2020 Rate CalculationsATTACHMENT 1Prepared by Marin Sanitary Service
Marin Franchisor's San Rafael Larkspur County LGVSD RossGroup TotalPercentage of Total Operating Revenue 100.00% 63.53% 15.97% 9.93% 8.50%2.08%Collector Operations24,582,830 15,616,693 3,925,215 2,440,608 2,089,016 511,299 Fuel and Oil True‐up180,477 51,124 12,850 7,990 6,839 1,674 Garbage Landfilling and Organics Processing 4,393,631 2,791,135 701,544 436,204 373,365 91,383 Garbage Landfilling and Organics True‐up117,598 11,179 2,810 1,747 1,495 366 Change in Law ‐ AB 1826 Costs 12,500 7,941 1,996 1,241 1,062 260 Subtotal for Profit Calculation29,087,036 18,478,072 4,644,415 2,887,790 2,471,777 604,982 Collector Profit (90.5% Operating Ratio) 3,053,335 1,939,687 487,535 303,138 259,468 63,506 Recyclable Materials Processing 838,280 532,533 133,851 83,225 71,236 17,435 Recycling Losses1117,475 74,628 18,758 11,663 9,983 2,443 Interest 559,045 355,144 89,264 55,503 47,507 11,628 Zero Waste Marin Fees 399,588 253,846 63,803 39,672 33,956 8,311 Franchise Fees 4,179,940 2,453,057 667,336 796,169 152,312 111,066 Other Agency Fees 1,258,000 443,600 568,400 246,000 ‐ ‐ Annual Rate Revenue Reconciliation2Total 2020 Rate Revenue Requirement 39,492,699 24,530,567 6,673,362 4,423,160 3,046,239 819,371 Total 2019 Rate Revenue Requirement 37,878,752 23,513,906 6,417,488 4,244,416 2,918,411 784,531 2020 Rate Revenue Adjustment 4.26% 4.32% 3.99% 4.21% 4.38% 4.44%1Applicable for 2020 & 2021 Rate Years only.2Beginning with 2021 Rate YearMarin Sanitary ServiceMarin Franchisors' Group Rate ApplicationCOLLECTOR'S RATE REVENUE REQUIREMENT AND RATE ADJUSTMENTINDEXED YEAR ‐ RATE YEAR 2020MFG Rate Calculation 2020_R3 Adjusted 111119Rate Adjustment Calculation11/11/2019Final Recommended 2020 Rate CalculationsATTACHMENT 2Prepared by R3 Consulting Group, Inc.
1 YD Bin 1 YD Bin 3 YD Bin 3 YD Bin
20 Gal. 30‐35 Gal. 60‐64 Gal. 90‐96 Gal. 1x/Week 3x/Week 1x/Week 3x/Week
City of Alameda Alameda 7/1/2019 33.24$ 41.96$ 68.95$ 96.30$ 159.86$ 489.15$ 479.57$ 1,467.45$
City of Albany Alameda 5/1/2019 39.15$ 43.84$ 75.77$ 107.68$ 174.67$ 524.01$ 524.01$ 1,572.03$
City of Berkeley Alameda 7/1/2019 27.30$ 43.66$ 87.28$ 130.87$ 173.77$ 489.63$ 480.92$ 1,428.48$
City of Dublin Alameda 7/1/2019 N / A 28.82$ 52.95$ 77.07$ 139.86$ 489.18$ 419.58$ 1,328.34$
City of Emeryville Alameda 1/1/2019 11.78$ 19.50$ 39.00$ 58.49$ 116.13$ 348.39$ 348.39$ 1,045.17$
City of Fremont Alameda 1/1/2018 34.04$ 34.77$ 38.12$ 55.93$ 100.71$ N / A 226.39$ N / A
City of Livermore Alameda 7/1/2019 29.35$ 38.85$ 58.18$ 91.42$ 116.72$ 364.16$ 350.16$ 1,115.62$
City of Newark Alameda 1/1/2019 29.30$ 32.56$ 57.68$ 82.77$ 131.95$ 411.70$ 349.10$ 952.03$
City of Oakland Alameda 7/1/2019 43.93$ 49.88$ 88.05$ 132.34$ 244.02$ 731.96$ 581.09$ 1,743.21$
City of Piedmont Alameda 7/1/2019 82.63$ 87.56$ 120.62$ 135.09$ 233.77$ 671.30$ N / A N / A
City of Pleasanton Alameda 7/1/2019 N /A 26.87$ N / A 46.89$ 120.34$ 382.02$ 361.01$ 1,125.01$
City of San Leandro Alameda 9/1/2019 25.91$ 32.27$ 53.72$ 75.14$ 141.50$ 427.81$ 427.81$ 1,283.43$
City of Union City Alameda 7/1/2019 30.37$ 37.98$ 76.00$ 113.97$ 157.77$ 435.75$ 413.43$ 1,126.73$
Castro Valley Sanitary District Alameda 5/1/2019 30.79$ 47.74$ 82.91$ 118.07$ 294.07$ 882.31$ 782.32$ 2,192.12$
Oro Loma Sanitary District (L1)Alameda 9/1/2019 9.42$ 18.79$ 37.62$ 56.40$ 122.92$ 319.50$ 327.40$ 917.15$
Oro Loma Sanitary District (L2)Alameda 9/1/2019 9.42$ 18.79$ 37.62$ 56.40$ 122.92$ 319.50$ 327.40$ 917.15$
Oro Loma Sanitary District (L3)Alameda 9/1/2019 10.87$ 21.80$ 43.52$ 65.31$ 142.19$ 369.60$ 378.76$ 1,060.79$
City of Richmond Contra Costa 1/1/2019 30.48$ 37.09$ 70.37$ 104.59$ 246.61$ 624.58$ 561.08$ 1,535.02$
City of San Pablo Contra Costa 1/1/2019 26.40$ 32.20$ 62.45$ 93.60$ 245.45$ 619.17$ 564.72$ 1,543.35$
City of El Cerrito Contra Costa 1/1/2019 38.61$ 50.70$ 101.74$ N / A 346.06$ 973.96$ N / A N / A
City of Hercules Contra Costa 1/1/2019 32.92$ 38.63$ 68.11$ 98.47$ 280.98$ 704.62$ 639.86$ 1,741.80$
City of Pinole Contra Costa 1/1/2019 29.99$ 35.74$ 63.63$ 92.40$ 266.67$ 676.06$ 618.37$ 1,695.32$
Unincorporated West Contra Costa Contra Costa 1/1/2019 28.37$ 34.73$ 66.50$ 99.06$ 233.92$ 589.13$ 525.89$ 1,432.39$
Town of Fairfax Marin 1/1/2020 35.69$ 42.78$ 85.58$ 128.36$ 251.56$ 595.85$ 589.76$ 1,543.77$
Town of San Anselmo Marin 1/1/2020 36.99$ 48.34$ 96.76$ 145.13$ 275.41$ 826.19$ 793.33$ 2,380.15$
City of Belvedere Marin 7/1/2019 46.46$ 57.43$ 97.43$ 137.44$ 255.07$ 704.67$ N / A N / A
City of Novato Marin 1/1/2020 14.05$ 22.46$ 44.88$ 67.35$ N / A N / A 276.21$ 685.37$
West Marin 1 Marin 1/1/2019 21.25$ 32.33$ 60.44$ 96.62$ 245.23$ 478.51$ 367.85$ 834.43$
City of Sausalito Marin 1/1/2018 N / A 41.35$ 82.70$ 124.05$ 163.28$ N / A 489.84$ N / A
Tamalpais Com. Service Dist. 1 Marin 7/1/2019 N / A 60.89$ 91.93$ 124.72$ 403.37$ 1,210.11$ N / A N / A
Town of Tiburon Marin 7/1/2019 40.90$ 46.14$ 84.02$ 121.27$ 219.60$ 599.12$ N / A N / A
Town of Corte Madera Marin 7/1/2019 32.69$ 38.44$ 77.09$ 115.73$ 179.81$ 485.29$ N / A N / A
City of Mill Valley Marin 7/1/2019 44.40$ 48.96$ 81.75$ 114.48$ 216.86$ 583.53$ N / A N / A
City of San Rafael Marin 1/1/2020 36.68$ 43.15$ 86.29$ 129.44$ 278.51$ 851.60$ 533.02$ 1,512.99$
Las Gallinas Valley Sanitary District Marin 1/2/2020 33.54$ 39.44$ 78.89$ 118.34$ 282.40$ 847.88$ 571.40$ 1,594.82$
City of Larkspur Marin 1/3/2020 41.66$ 49.00$ 98.00$ 147.00$ 311.12$ 933.04$ 624.81$ 1,638.31$
Town of Ross Marin 1/4/2020 35.14$ 41.36$ 82.71$ 124.07$ N / A N / A 530.96$ 1,592.73$
County of Marin Marin 1/5/2020 30.08$ 49.16$ 100.71$ 155.96$ 355.17$ 1,065.66$ 568.51$ 1,705.60$
City of Campbell 1 Santa Clara 7/1/2019 21.99$ 28.77$ 57.54$ 86.31$ 143.77$ 435.47$ 287.54$ 870.93$
City of Cupertino 1 Santa Clara 11/1/2019 N / A 27.36$ 54.73$ 82.10$ 168.04$ 504.16$ 268.88$ 806.62$
City of Los Altos Santa Clara 7/1/2019 32.21$ 34.69$ 69.37$ 104.07$ 136.10$ 408.32$ 408.31$ 1,224.96$
City of Milpitas Santa Clara 7/1/2019 N / A 33.59$ 42.94$ 49.33$ 121.17$ 298.38$ 275.18$ 778.98$
City of Monte Sereno 1 Santa Clara 7/1/2019 25.03$ 32.75$ 65.50$ 98.25$ 191.19$ 579.20$ 382.39$ 1,158.41$
City of Mountain View Santa Clara 7/1/2019 23.95$ 34.95$ 69.90$ 104.85$ 106.95$ 363.20$ 320.25$ 1,003.80$
City of Palo Alto Santa Clara 7/1/2017 27.81$ 50.07$ 100.15$ 150.22$ 219.49$ 590.31$ 504.40$ 1,455.48$
City of San Jose Santa Clara 7/1/2019 N / A 35.89$ 71.78$ 107.67$ 146.34$ 419.09$ 204.39$ 584.54$
City of Santa Clara Santa Clara 7/1/2019 23.07$ 30.67$ 45.13$ 59.64$ 93.40$ 270.26$ 261.60$ 742.49$
City of Sunnyvale Santa Clara 1/1/2019 N / A 37.36$ 41.47$ 46.67$ 172.79$ 487.21$ 429.37$ 1,251.50$
City of Saratoga1 Santa Clara 7/1/2019 23.66$ 30.95$ 61.90$ 92.85$ 202.82$ 614.67$ 405.64$ 1,229.34$
Town of Los Altos Hills Santa Clara 7/1/2019 33.51$ 46.71$ 93.45$ 140.14$ 117.61$ 184.05$ 247.70$ 430.39$
Town of Los Gatos1 Santa Clara 7/1/2019 22.88$ 30.04$ 60.09$ 90.13$ 173.24$ 524.88$ 346.49$ 1,049.76$
35.42$ 44.42$ 89.32$ 134.96$ 306.80$ 924.55$ 565.74$ 1,608.89$
34.05$ 43.91$ 80.26$ 117.52$ 245.58$ 685.41$ 503.40$ 1,360.93$
34.58$ 44.08$ 83.28$ 123.33$ 264.41$ 765.12$ 534.57$ 1,498.68$
30.65$ 38.62$ 70.68$ 101.01$ 198.84$ 568.17$ 440.34$ 1,269.00$
1 1 CY not available, reflected here for 1.5 CY
Jurisdiction County
Residential Single Family
All City Average
Bay Area Rate Survey
Effective Dates
Marin Franchisors' Average
Marin County Average without MFG
Marin County ‐ All
Commercial
ATTACHMENT 3
I I I I I I
$43.15 $39.44 $49.00 $41.36 $49.16 $‐ $10.00 $20.00 $30.00 $40.00 $50.00 $60.00City of San Rafael LGVSD City of Larkspur Town of Ross County of Marin$ Per MonthJurisdictionRates for Residential 30‐35 Gallon Collection Service with Weekly Garbage, Recycling and Organics Collection Service Showing Proposed 2020 MFG Rates in Comparison to 2019 Rate Averages in Marin County and Bay AreaMarin Franchisors' Group Average: $44.42Average of Other Marin County Jurisdictions: $43.91All Jurisdiction Average: $38.62ATTACHMENT 4I U,■'l,U■, ~-,.., ..... ,.., •&,1 .. ,.., ..... ,.., ..... ,..,. -4 - • - • - • -· • - • -• -' -• -• -• -· • -• -" • ■■■■I ---•
$533.02 $571.40 $624.81 $530.96 $568.51 $‐ $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00City of San Rafael LGVSD City of Larkspur Town of Ross County of Marin$ Per MonthJurisdictionRates for Commercial 3 Cubic Yard, 1 Time per Week Collection ServicesShowing Proposed 2020 MFG Rates in Comparison to 2019 Rate Averages in Marin County and Bay AreaMarin Franchisors' Group Average: $565.74Average of Other Marin County Jurisdictions: $503.40 All Jurisdiction Average: $440.34ATTACHMENT 51················ ••••• ••••••••••••• ••••• •••••••••••••••• ................ ~~~-~ -------------·---- ----. -. -. ·-. -· . -. -. -. -. -. -. -. -. -. ••••• ---.
www.r3cgi.com
Northern California Office
1512 Eureka Road, Suite 220, Roseville, CA 95661
Tel: 916-782-7821 | Fax: 916-782-7824
San Francisco Bay Area Office
2600 Tenth Street, Suite 424, Berkeley, CA 94710
Tel: 510-647-9674
Illegal Dumping Reduction Pilot Program Overview
Background
The San Rafael City Council has established reduction of illegal dumping as a high priority area for City
action. The City conducted a pilot project in 2018-2019 that tested implementation of “bulky waste”
collection and recycling events as a means of to reducing illegal dumping, with the results reported in the
City of San Rafael Illegal Dumping Pilot Report (Bulky Waste Collection and Recycling Events).
The 2018-2019 pilot project found that bulky waste collection events resulted in a noticeable reduction in
illegal dumping. The Report recommends further implementation of illegal dumping reduction actions in
2020, including continuation of the bulky waste collection events (which proved successful) as well as
testing of new programs to reduce the incidence of – and clean-up response to – illegal dumping in the
City.
2020 Funding Opportunity
The City has an opportunity to provide funding for continuation of the bulky waste collection events and
testing of new recommended programs in 2020 via a small increase in the solid waste rates. R3 Consulting
Group, Inc. (R3) has separately calculated that the 2020 solid waste rate adjustment for San Rafael should
be 4.32% (per R3 Review of Marin Sanitary Service’s 2020 Rate Application) based on the Franchise
Agreement between the City and Marin Sanitary Service (MSS).
The City may choose direct 0.53% to be added to the rate adjustment – resulting in a total rate adjustment
of 4.85% – in order to fund $100,000 in MSS and City costs for a “2020 Illegal Dumping Reduction Pilot
Program” (Pilot Program) that would implement the actions recommended in the City of San Rafael Illegal
Dumping Pilot Report (Bulky Waste Collection and Recycling Events).
Overview of Proposed 2020 Illegal Dumping Reduction Pilot Program
If funded, the City would work with MSS, prior pilot project partner Gigantic Idea Studios (GIS), R3, and
other key stakeholders identified by the City to conduct additional discovery and research early in 2020
and then finalize the Pilot Program design parameters, logistics, and schedule. By Spring 2020, the project
team would implement (tentatively) the following three services that would:
To: Cory Bytof, Sustainability Program Manager, City of San Rafael
From: Garth Schultz and Ryan Calkins, R3 Consulting Group
Date: December 2, 2019
Subject: 2020 Illegal Dumping Reduction Pilot Program Funding via 2020 Solid Waste Rates
Mr. Cory Bytof
2020 Illegal Dumping Reduction Pilot Program Funding via 2020 Solid Waste Rates
December 2, 2019
Page 2 of 4
Reduce illegal dumping generation from residential properties via “debris box events”, like those
implemented via the prior pilot in 2018-2019. This element of the pilot would be undertaken in
order to gather additional information about the costs and effectiveness of this program element
for the purposes of future cost and effectiveness comparisons against other potential
alternatives. The City anticipates providing four “debris box events” providing access to service
for a test population of approximately 2,400 housing units.
Reduce illegal dumping generation from residential properties via a “voucher” program for no-
cost disposal at MSS’s public facility in San Rafael. This would be a new service and would be
undertaken to gather information about the effectiveness of and participation in the program,
also for future comparison to alternatives as noted above. The City anticipates providing vouchers
via mail to a test population of 1,700 hours units and working with MSS to carefully monitor and
track “redemption” of the vouchers.
Help commercial businesses remove illegal dumping from their property via a “coupon” program
for no-cost disposal at MSS’s public facility in San Rafael. This would be an all new service and
would be undertaken to gather information about the effectiveness of and participation in the
program, and comparison to alternatives. The coupons would potentially be distributed by the
City based on reports of illegal dumping on commercial property, estimated at 200 coupons total.
The City would work with MSS to carefully monitor and track “redemption” of the coupons.
Partnership with MSS
MSS has been briefed on the details of the proposal to increase rates to fund implementation of the Pilot
Program and has expressed that it is happy to be the City in being the City’s operational partner, and MSS
supports the rate funding of Pilot Program costs. MSS did express that operational logistics will need to
be discussed and refined prior to implementation in order to mitigate the possibility that actual costs
exceed the $100,000 recommended Pilot Program budget. R3’s engagement in the project is to support
the City and MSS as the City’s solid waste financial and programs consultant by developing the financial
and operational parameters that will both help keep costs within the overall budget. R3 is further
committed to supporting the City’s analysis of the financial and operational Pilot Program results, in order
to establish findings about operational efficiency and cost effectiveness for future Citywide illegal
dumping reduction programs.
Reporting and Next Steps for 2021
After completion, the project team would prepare a report on the Pilot Program results, with an
anticipated report in the Fall of 2020. The City to present the results to Council and make
recommendations about next steps to continue progress in 2021 to reduce illegal dumping, including
projections of the potential for citywide implementation of the program elements tested in 2020
(preliminary estimates subject to refinement based on Pilot Program results are included at the end of
the memorandum).
Pilot Program Rate Impact and Draft Budget
The City has an opportunity to set the 2020 solid waste rates to secure funding for the Pilot Program as
part of the 2020 rate hearing on December 16, 2019. The City is scheduled to hear and adopt a 4.32%
increase in MSS’s solid waste rates, in accordance with the terms and conditions of the new annual
“indexed rate adjustment”, per the revised Exhibit B to the Franchise Agreement with MSS, which the City
adopted in early 2019.
Mr. Cory Bytof
2020 Illegal Dumping Reduction Pilot Program Funding via 2020 Solid Waste Rates
December 2, 2019
Page 3 of 4
City May Direct Change in Scope
Per Section IV. of Exhibit B, the City may direct a “change in scope” to the services provided by MSS, and
the City may secure funding for the Pilot Program by directing such a change in scope. With the 4.32%
indexed rate adjustment due to MSS, the City may seek to fund up to $100,000 for the Pilot Program by
adopting a 2020 rate adjustment of 4.85% (0.53% more than the base 2020 rate increase of 4.32% due to
MSS per Exhibit B). Funding of the Pilot Program is entirely at the City’s discretion and may be funded at
a greater or lesser amount, or at a later time, if desired.
Table 1 shows the calculation of the 2020 Rate Adjustment with the inclusion of the proposed $100,000
funding for the Pilot Program (added to existing line in the 2020 Rate Adjustment, which is for actions
related to compliance with State Law AB 1826, with a 2020 amount of $7,941). All information in Table 1
is the same as the information presented in the R3 Review of Marin Sanitary Service’s 2020 Rate
Application, with the exceptions of the $100,000 increase (above the $7,941 in AB 1826 costs included in
the base rate application) in the line labelled with “Change in Scope”, MSS’s profit (which also will increase
in accordance with the increase in operating expenses and is appropriate to offset MSS’s administrative
costs associated with being a partner in the Pilot Program), and the 2020 Rate Revenue and Adjustment
calculations.
Table 1: Revised San Rafael 2020 Rate Calculation
Includes $100,000 for Illegal Dumping Reduction Pilot Program as “Change in Scope”.
Collector Operations $ 15,616,693
Fuel and Oil True-up 51,124
Garbage Landfilling and Organics Processing 2,791,135
Garbage Landfilling and Organics True-up 11,179
Change in Scope: Illegal Dumping Pilot Program ($100,000) and AB 1826 Costs ($7,941) 107,941
Collector Profit (90.5% Operating Ratio) 1,950,184
Recyclable Materials Processing 532,533
Recycling Losses 74,628
Interest 355,144
Zero Waste Marin Fees 253,846
Franchise Fees 2,465,334
Other Agency Fees 443,600
Total 2020 Rate Revenue Requirement 24,653,341
Total 2019 Rate Revenue Requirement 23,513,906
2020 Rate Revenue Adjustment 4.85%
Mr. Cory Bytof
2020 Illegal Dumping Reduction Pilot Program Funding via 2020 Solid Waste Rates
December 2, 2019
Page 4 of 4
Draft Pilot Program Budget
A draft budget for the Pilot Program, at an anticipated total expense of $100,000, is provided in Table 2.
Please see the City of San Rafael Illegal Dumping Pilot Report (Bulky Waste Collection and Recycling
Events) for more detailed descriptions of the general program concepts and prior recommendations. Note
that the program details included in this memorandum have been adjusted to correspond with the
recommended $100,000 program budget.
Table 2: Proposed 2020 Illegal Dumping Reduction Pilot Program Budget
Figures for Items 2-4 are estimates, subject to refinement during Pilot Program finalization in early 2020.
Preliminary Draft Citywide Projections
R3 has prepared rough preliminary estimates of the potential for Citywide implementation of the three
Pilot Program elements. Please note that these estimates are for rough order of magnitude only and are
subject to future refinement. It is the City’s intention for the Pilot Program to gather better information
such that these estimates can be refined based on actual data prior to making future recommendations
to the City Council. Additionally, during the Pilot Program design phase, the project team will explore
other potential alternatives to the below (such as an expanded on-call bulky item collection program, for
example) that could result in lower costs per cubic yard collected.
Table 3: Preliminary Estimates of Citywide Implementation
Program Cubic Yards
Collected (Est.)
Annual Cost
(Est.)
Cost Per Cubic
Yard (Est.)
2021 Rate
Adjustment (Est.)
Debris Box Days 200 $ 100,000 $ 500 1.00%
Multi-Family Voucher 1,700 $ 440,000 $ 259 2.00%
Commercial Coupon 400 $ 140,000 $ 350 1.00%
Responsible
Party
Estimated
Cost
1 Pilot Program Research, Design and
Finalization City / GIS January,
2020
February,
2020 $ 7,000
2 Debris Box Day Pilot Program
Implementation City / GIS March, 2020 September,
2020 $ 18,000
3 Multi-Family Bulky Voucher Pilot Project
Implementation MSS / City March, 2020 August, 2020 $ 60,000
4 Commercial Ratepayers Illegal Dumping
Coupon Pilot Project Implementation MSS / City March, 2020 August, 2020 $ 11,000
5 Pilot Program Conclusion and Final Report City / GIS September,
2020
October,
2020 $ 4,000
$100,000
Task Anticipated Timeline
Total
Bulky Waste Collection and Recycling Events
A Pilot Project to Reduce Illegal Dumping
The Canal Neighborhood in East San Rafael | October 2018 – August 2019
SAN RAFAEL
I V W ITH A M ISSION ~ TH~CII,
A special thanks to Zero Waste Marin for funding this project.
ZER0
WASTE
MARIN
Executive Summary 1
Background 2
Goals 3
Events Overview 4
Marketing and Promotion 5
Costs Incurred 6
Results 7
Analysis and Co-benefits 8
Recommendations 9 – 10
Cost Analysis 11 – 13
What We Still Don’t Know 14
Appendix 15 – 19
Table of Contents
The Canal Neighborhood in East San Rafael is a hotspot for illegal dumping. Numerous factors, including the cost
of disposal, access to transportation, and the perception that dumping is a legal and a social norm contribute to
the problem.
In 2018, the City of San Rafael launched a four-part behavior change campaign to keep mattresses, furniture,
and other bulky waste off the streets. This report highlights preliminary results from one part of the campaign –
our Bulky Waste Collection and Recycling Events (Events). This yearlong pilot project was funded with Zero
Waste grant funds from Zero Waste Marin and offered Canal residents free monthly disposal of bulky waste.
After seven of nine scheduled Events, we had collected nearly 300 mattresses for recycling and disposed of more
than 400 cubic yards of bulky waste. A total of 189 households attended the Events, or about 8% of the
community as outlined in red on page two.
The Department of Public Works noted a significant decrease in illegal dumping and attributes a portion of this
improvement to these Events and the outreach associated with them. Furthermore, these Events provided a
service for residents in a historically disadvantaged area and highlight the City’s commitment to supporting all
parts of San Rafael.
The Sustainability Program recommends continuing these Events through 2020, with an opportunity for
evaluation and realignment at the end of the calendar year. Concurrent with these Events, we also recommend
two additional pilot projects to support a larger portion of the Canal neighborhood; a voucher program for
multifamily residents and coupon program for businesses in East San Rafael. See pages nine and ten for a
detailed explanation of these recommendations.
This report was submitted on June 28, 2019 by Alex Wood – a Climate Corps Fellow for the 2018-19 program cycle.
Executive Summary
1
The illegal dumping of mattresses, furniture, and other bulky is a common problem in parts of San Rafael,
threatening public health and safety and spurring additional criminal activity. The Canal neighborhood, as
outlined in red in the map below, bears the brunt of this problem and is a mixture of commercial businesses,
multifamily dwellings, and single-family homes.
One day each week, a team from the Department of Public Works (DPW) removes illegally dumped materials
from the Canal, collecting about 20 cubic yards of debris each month. As of May 20, the team had removed
79,380 pounds of bulky waste in 2019. That’s about the weight of seven adult elephants! The materials collected
are typically sent to landfill with few, if any, opportunities for salvage or recycling.
To mitigate this problem, the City implemented a four-part strategy beginning in 2018.
1. Engagement: Preliminary research in the Canal neighborhood revealed a common belief that dumping
furniture and other materials in the street was both legal and acceptable. To counter this perception,
the City mailed postcards to all residents in the Canal neighborhood in the summer of 2018 about the
proper disposal of unwanted furniture.
2. Enforcement: After mailing these postcards, the Public Works Department began issuing warnings,
educational material, and then administrative citations for illegally dumping furniture, in hopes that
additional pressure on businesses and property owners would curb the problem. In addition, the Police
Department stepped up their efforts to make contact with people who were reported to have dumped
items on the public right of way.
3. Bulky Waste Collection and Recycling Events: In October 2018, the City launched an eleven-month pilot
project in the Canal neighborhood offering free disposal events for residents.
4. Mini-Grants: In December 2018, the City launched a seven-month pilot project rooted in the theory of
Crime Prevention Through Environmental Design. Businesses and property owners were offered up to
$1,000 for eligible projects proven to reduce the likelihood of illegal dumping, including the installation
of new lighting, fencing, signage, and surveillance cameras.
All four parts of this strategy work in unison to reduce illegal dumping, but this report will only detail the
preliminary results and recommendations from our Bulky Waste Collection and Recycling Events.
Background Background
We identified four primary goals for our Bulky Waste Recycling and Collection Events.
1. Reduce the frequency and volume of illegally dumped materials in the Canal neighborhood.
2. Divert usable materials from landfill via salvage and recycling initiatives.
3. Better understand the community-specific barriers that prevent people from properly disposing of
unwanted furniture and bulky waste.
4. Mitigate social inequities that inhibit the proper disposal of unwanted furniture and bulky waste.
Goals
2
3
Background
In September 2018, the City contracted with the Conservation Corps North Bay to organize nine Events from
October 2018 to August 2019. Two Events remain and are scheduled for July 27 and August 24, 2019.
Accordingly, this report does not include results from the project in its entirety. It will, however, include enough
data to support our analysis and recommendations, as we do not anticipate any changes or surprises at our
Events in July or August.
Logistics
Each Event was held from 10AM – 4PM at 50 Canal Street – the Albert J. Boro Community Center. Research
conducted before these Events suggested the Center would be the most visible and accessible site for Canal
residents. Although our goal was to hold each Event on the last Saturday of the month, numerous scheduling
complications prevented this, typically because of holidays like Thanksgiving, Christmas, and Memorial Day.
Surveys
All households that attended the Events were asked the six questions listed below. Please see the Results
sections for a summary of the data collected. From observation alone, we also recorded data about age and sex.
Partner Organizations
• Conservation Corps North Bay (CCNB): For staffing and logistical support.
• The Mattress Recycling Council (MRC): For mattress collection and joint marketing outreach.
• Grange Box Hauling: For debris box rentals.
• Urban Ore: For furniture salvage.
Additional Support
• Gigantic Idea Studio (GIS): For preliminary research, marketing collateral, survey design, and ongoing
strategy support.
• The Department of Public Works: For logistical planning support at the Center, developing the address
and mailing list, and for on-site traffic control (No Parking signs posted 72 hours prior to each Event).
Events Overview
4
We used multiple channels to promote these Events and encourage participation. Note: We did not use each
channel for each Event; instead, we tried different combinations depending on various factors, including the
time of year and the success of previous outreach efforts.
Direct mail
We mailed three sets of postcards to all residents in the Canal neighborhood over the course of five months. All
postcards were in Spanish and each set included 2,400 addresses. The backside of each postcard included a link
to an English version posted on the City’s website.
The first mailing listed the Event in October; the second set listed Events in December, January, and February;
and the third set listed Events in March, April, and June. Each postcard was printed in Spanish with a link to an
English version online. See Appendix I for the most recent version. We will mail a fourth set of postcards in June
to promote our Events in July and August.
Direct outreach
Postcards were also distributed in person at the Marin Community Clinics Health Hub and the Canal Alliance
Food Pantry, reaching more than 600 residents over four months (January – April 2019). Most of the information
was provided in Spanish.
City website
The postcards were posted online both in English and Spanish. Each postcard we mailed included a link to this
posting.
The Mattress Recycling Council (MRC)
The MRC promoted the mattress collection extensively, but did not advertise the bulky waste collection – this
service was strictly for Canal residents, except on rare, case-by-case exceptions. MRC outreach included a full
page advertisement in the Marin Independent Journal, advertisements on local radio stations, and a posting on
their website.
Outreach with Partner Organizations
• Conservation Corps North Bay: Posters were distributed to numerous property managers; additional
posters were hung directly in laundry rooms and other community spaces.
• Albert J. Boro Community Center: Postcards were distributed to various community groups; posters at
the front desk and on community bulletin boards.
• Bahia Vista Elementary School: A black and white version of the postcard was placed in students’ take-
home packets on three separate occasions, reaching about 650 students each time.
• San Pedro Elementary School (Parent Services Project): Postcards distributed.
• Alcohol Justice: Postcards distributed to “clients” when appropriate, as determined by staff.
• Cardenas Market: Poster and postcards at the customer service counter.
• Free Cycle: Online post with event details.
Marketing and Promotion
5
The total cost for this project – including the cost for the remaining Events in July and August – was $51,368.
This cost does not include City staff time. Alex Wood – the Climate Corps Fellow for the 2018-19 cycle – spent a
significant amount of time managing outreach, coordinating the Events, and collecting and tracking the data.
The average cost per event was $5,708.
Bulky Waste Collection and Recycling Events
Expense Item Total Costs
Debris box rentals $ 16,090
Gigantic Idea Studio $ 20,000
Postcard printing $ 2,502
Postcard postage $ 2,776
Conservation Corps North Bay $ 10,000
$ 51,368
Debris box rentals: We rented two 40 cubic yards boxes for each Event at $920 per box. For one Event, we
replaced one of the boxes with a 20 cubic yard box at $450.
Gigantic Idea Studio (GIS): We contracted with GIS for ongoing strategy support and postcard and survey
design.
Postcard printing: We printed all postcards at the County’s print shop at the Civic Center.
Postcard postage: We mailed all postcards from the USPS facility at 40 Bellam Boulevard in San Rafael.
Conservation Corps North Bay (CCNB): We contracted with for staffing each Event.
Costs Incurred
6
This section includes results from the first seven of nine scheduled Events.
Data Snapshot
Total Average per Event
Attendance (households) 189 27
Mattresses Collected (units) 106 15
Bulky Waste Collected (cubic yards) 438 63
Attendance
• 189 households attended the first seven Events.
• 50% of these households were from Canal Street; the remaining 50% were from other parts of the
Canal neighborhood.
Mattresses Collected
• We collected 106 mattresses from Canal residents.
• We collected an additional 180 mattresses from non-Canal residents
o After our first Event in October, the Mattress Recycling Council asked to advertise these Events
in the Marin Independent Journal, on byebyemattress.com, and on local radio stations,
thereby attracting residents from other parts of San Rafael and neighboring communities. In
keeping with our original goals for this pilot project, these additional mattresses should be
tracked separately.
Bulky Waste Collected
• We collected 438 cubic yards of bulky waste for salvage and disposal. As shown below, that’s nearly
ten full size dumpsters (40 cubic yards each).
Survey Questionnaire Data
October 2018 – June 2019
See Appendix III for aggregate data
Results
7
Illegal dumping abatement in the Canal neighborhood demands a tremendous amount of City staff time and
resources.
This pilot project was a behavior change campaign to encourage residents in the Canal neighborhood to properly
dispose of old furniture and other bulky waste. Changing people’s behavior is difficult, time consuming, and
often costly. Our preliminary results suggest these Events were well attended and effective, collecting three
times as much bulky waste as DPW each month and diverting materials from landfill via our partnership with
the Mattress Recycling Council.
We do not have baseline data from previous years for comparison, but anecdotal evidence from residents,
property owners in the Canal, and City staff in the field suggests a noticeable reduction in illegal dumping.
There are several additional co-benefits from these Events, including those listed below.
• Cross department collaboration: Joint initiatives with the Police Department, the Sustainability
Program, Community Services, and the Department of Public Works through the Together San Rafael
initiative.
• Social equity: Giving apartment dwellers access to bulky waste disposal as is already available to
residents living in single family homes.
• Stronger community relationships: Collaboration with local schools, organizations, and programs,
including the Canal Alliance, the Marin Community Clinics, the East San Rafael Working Group, and the
Parent Services Project.
Analysis and co-benefits
8
The following recommendations are driven by the results and analysis from the first seven Events. These
recommendations should be used as a framework for discussion and may need to be adapted as the problem
evolves.
Recommendation 1: Continue the Bulky Waste Collection and Recycling Events in the Canal
neighborhood through the end of 2020.
All residents in San Rafael should have equal access to bulky waste disposal – not just those living in single family
homes. Results from this pilot suggest the Events reduced the frequency of illegal dumping and the volume of
materials sent to landfill. These Events also play a role in mitigating social inequities, reducing crime, and
improving public health. This program could be permanently funded via a small rate increase with Marin Sanitary
Service (MSS) for the 2020 rate year. See page 11 for a preliminary cost analysis.
Strategies for Implementation:
A) Offer these Events to all residents living in apartments and multifamily dwellings – not just those in
the Canal neighborhood.
This will require increased marketing and promotion, likely via additional postcard mailings and
continued partnerships with organizations like the Canal Alliance and the Marin Community Clinics.
B) Secure a new location in the Canal neighborhood to host these Events.
Parking is extremely limited in the Canal and these Events require a minimum of seven reserved parking
spots. Should these events expand and attract more residents, we will need additional space for
dumpsters. Furthermore, traffic control is difficult and remains a gray area without onsite, day-of
support from Parking Services. The Northern parking lot at Bahia Vista Elementary School has potential
to alleviate these issues, allowing for better traffic control and minimizing the time that residents and
CCNB staff spend in the street.
C) Organize Events earlier in the day to accommodate MSS’ schedule.
If we shift these Events from 10 AM – 4PM to 8 AM – 12 PM, we can rent debris boxes from MSS instead
of Grange. This would be a simple, low-cost amendment to the City’s annual contract with MSS. A
predetermined number of rentals each year may also reduce costs and save staff time by eliminating
the need for month-by-month rental coordination.
D) Continue to contract with the Conservation Corps North Bay (CCNB) for staffing.
CCNB is a reliable, cost effective partner with bilingual staff.
E) All outreach material should be available in at least three languages: English, Spanish, and
Vietnamese.
Our current outreach efforts do not effectively reach our Vietnamese populations.
F) Require proof of residency for Events and voucher program.
Demand for these Events is likely to grow as community awareness increases, especially if we open the
Events to all residents living in multi-family dwellings.
G) Reduce the time the Department of Public Works (DPW) allocates for illegal dumping abatement in
the Canal neighborhood to free up resources and staff time for other projects.
As noted in our Analysis on page 8, these Events collect three times as much bulky waste as does the
team from DPW each month.
Recommendations
9
Recommendation 2: Concurrent with the Events, launch a yearlong pilot project in 2020 giving
vouchers to apartment dwellers for free disposal at Marin Sanitary Service.
Although the Events were successful, a voucher program could be less expensive and equally as effective. A short
pilot would test this theory. If vouchers prove effective at the end of the pilot, the rate increase proposed in
Recommendation 1 could be used to fund this program instead of the Events.
Strategies for Implementation:
A) Immediately allocate a portion of the City’s Zero Waste grant funds to launch the pilot.
Coordinate with Marin Sanitary Service to manage logistics and data collection.
B) Contract with Gigantic Idea Studio (GIS) for strategy support and voucher design.
Consider the administrative burden from managing this program and potential difficulty in tracking data.
Recommendation 3: Launch an additional yearlong pilot project in 2020 giving coupons to
businesses in East San Rafael for free disposal at Marin Sanitary Service.
Although the Events were successful, some businesses in East San Rafael still suffer from illegal dumping on their
property. This pilot would offer businesses one-time free disposal for no more than four cubic yards of bulky
waste (e.g., four sofas.)
Strategies for Implementation:
A) Review the cost analysis on page 13 and continue discussions with City decision makers.
Coordinate with Marin Sanitary Service to manage logistics and data collection.
B) Contract with Gigantic Idea Studio (GIS) for strategy support and voucher design.
Consider the administrative burden from managing this program and potential difficulty in tracking data.
Recommendation 4: Continue the four-part strategy detailed on page three of this report.
1. Engagement: Consider additional outreach to property owners and managers in East San Rafael about
the services available for bulky waste disposal.
2. Enforcement: Consider an expanded initiative with DPW to issue citations for illegal dumping; the
revenue generated from these citations can be used as supplemental funding for the mini-grant
program (item #4).
3. Bulky Waste Collection and Recycling Events: As detailed in Recommendation 1.
4. Mini-Grants: Consider additional direct outreach in East San Rafael to encourage business participation
in the mini-grant program. As of June 1, 2019, five of ten available mini-grants had been approved, but
zero projects were complete.
10
We estimate the cost to continue these Events and launch two additional pilot programs is about $125,000. This
figure is subject to numerous variables and assumptions and should be reviewed again before making any
decisions.
Annual Expense Forecast - Continue Events (As Is)
Expense Item Units Hours Cost per Unit or Hour Total Cost
Logistics and Staffing
Conservation Corps North Bay
Supervisors N/A 50 $ 63 $ 3,138
Corpsmembers N/A 160 $ 32 $ 5,080
Debris Box Rentals
Grange Box 20 N/A $ 920 $ 18,400
Marketing and Promotion
Postcard design N/A 8 $ 130 $ 1,040
Printing 9600 N/A $ 0.25 $ 2,400
Postage 9600 N/A $ 0.30 $ 2,880
$ 32,938
Assumptions:
Logistics and Staffing
• Ten events per year, five hours per event, 1 supervisor & 4 Corpsmembers per event
Debris Box Rentals
• Ten events per year, two 40 cubic yard dumpsters per event (cost could change if MSS provided debris
boxes instead of Grange Box)
Marketing and Promotion
• Gigantic Idea Studio will use our existing postcard format with minor updates; 4 mailings per year, ~2
hours per mailing
• 2400 addresses
Cost Analysis
Annual Expense Forecast – Multi-family Voucher Pilot
Expense Item Units Hours Cost per Unit or Hour Total Cost
Voucher Design
Gigantic Idea
Studio N/A 32 $ 130 $ 4,160
Voucher Distribution
Printing 6936 N/A $ 0.25 $ 1,734
Postage 6936 N/A $ 0.30 $ 2,081
Marin Sanitary Service
Bulky Waste Disposal 1734 N/A $ 38.00 $ 65,892
$ 73,867
Assumptions:
Voucher Design
• 32 hours is based on a previous contract with a similar scope of work
Voucher Distribution
• 4 mailings per year, 1734 addresses per mailing
Marin Sanitary Service (MSS)
• The cost of disposal varies based on item type and amount, but most sofas and “equivalent” cost $38 at
the indoor dump
• Assuming 25% of households use the voucher; 4 sofas or “equivalent” per year
Cost Analysis (Continued) 11
Annual Expense Forecast - Commercial Ratepayers Pilot with Coupons for Disposal
Expense Item Units Hours Cost per Unit or Hour Total Cost
Coupon Design
Gigantic Idea
Studio N/A 32 $ 130 $ 4,160
Coupon Distribution
Printing 300 N/A $ 0.25 $ 75
Postage 300 N/A $ 0.30 $ 90
Marin Sanitary Service
Bulky Waste Disposal 300 N/A $ 48.00 $ 14,400
$ 18,725
Assumptions:
Coupon Design
• 32 hours is based on a previous contract with a similar scope of work
Coupon Distribution
• 1 mailing per year, ~300 addresses per mailing
Marin Sanitary Service (MSS)
• The cost of disposal varies based on item type and amount, but it typically costs $48 for one cubic yard
of material at the indoor dump
• Assuming 25% of businesses use the voucher; 4 cubic yards of waste per year (one-time disposal)
Cost Analysis (Continued) 12
Are the people who come to our Events the same people who dump illegally?
• If yes, are these Events enough to discourage illegal dumping, or are additional services and/or programs
needed?
• If no, what other services and/or programs might reach this group and discourage dumping?
Is transportation still a barrier to proper disposal and/or coming to our Events?
• How can we better understand the impact of this barrier?
• Could we pay CCNB to pick-up bulky waste from individual residences, as they already do with electronic
waste?
How many people come from other cities (or other parts of San Rafael) and dump illegally in our Canal
neighborhood?
• Businesses? Individuals? Or both?
• Is the mini-grant program our best hope for combatting this piece of the puzzle?
Should we consider a City ordinance requiring apartment managers to provide debris boxes (or another similar
service) to their tenants once each month?
• Who would pay for this?
• Would this be effective? (400 Canal Street does something similar with a pick-up truck)
How long, on average, are people willing to hold onto bulky waste?
• In other words, are monthly Events frequent enough to discourage dumping?
• Would vouchers fill the void for people who need to get rid of something immediately?
Can we track the number of DPW dispatches into the Canal before and after these Events started to better
understand our impact/success?
• This would alleviate some of the challenges around using “mixed” data and trying to make comparisons;
DPW tracks everything in tonnage, whereas our Events tracked everything in cubic yards.
What We Still Don’t Know 13
Appendix I: Postcards designed by Gigantic Idea Studio (GIS), version 3
14
15
Appendix III: Aggregate Survey Questionnaire Data
Question 4: How did you hear about this event
today?
Responses: 152
Postcard 56
Word of mouth 25
Event signage while passing by 25
Other 23
Flyer from Bahia Vista Elementary 12
Poster 11
Question 1: Why are you getting rid of this item
today?
Responses: 158
Other 68
Item is broken 53
Got a replacement 34
Moving 2
Roommate left it behind 1
Item(s)
Other 142
Mattress 106
Chair 81
Sofa 64
Dresser 22
Table 19
Electronic waste 17
Rug 4
HHW 3
Total Bulky Items Collected 458
Question 2: How do you normally get rid of bulky
items like old mattresses and furniture?
Responses: 154
Take items to the dump 89
Other 39
Give to friends or family 22
Put items in the street 3
My apartment building offers a service 1
Age (Observed)
20s-30s 76
40s-50s 56
60s or older 16
Gender (Observed)
Male 105
Female 43 Question 3: Have you been **here** to this event
before?
Responses: 125
No 103
Yes 22
16
Appendix IV: Pictures from Events
17
18
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19
Legal No.
Marin Independent Journal
4000 Civic Center Drive, Suite 301
San Rafael, CA 94903
415-382-7335
legals@marinij.com
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:
12/06/2019
I certify (or declare) under the penalty of perjury that the
foregoing is true and correct.
Dated this 6th day of December, 2019.
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Marin
Signature
PROOF OF PUBLICATION
0006433800
2070419
CITY OF SAN RAFAEL
CITY OF SAN RAFAEL
CITY CLERK, ROOM 209
1400 FIFTH AVENUE, SAN RAFAEL, CA 94901
SAN RAFAEL, CA 94915-1560
r.BP7-11/10/16 1
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 coll ection and recycling services
and adoption of a Resolution setting ma ximum rates for the year 2020 .
DATE/TIME/PLACE: Monday, December 16, 2019, at 7:00 p.m.
City Hall Council Chambers,
1400 Fifth Avenue, San Rafael
WHAT WILL HAPPEN: You may comment on the proposed Resolution .
Th e City Council will consider all pub li c testimony and wi ll then decide
w hether to approve the Resolutio n.
IF YOU CANNOT ATTEND : You may send a letter to City Clerk, City of
San Rafael, 1400 Fifth Avenue, San Rafael, CA 94901. You may also hand
deliver a letter to the City Clerk prior to the meeting.
FOR MORE INFORMATION: You may contact Cory Bytof, Sustainability
Program Manager, at (415) 485-3407. Office hours are Monday through
Friday , 8:30 a.m . t o 5:00 p.m.
SAN RAFAEL CITY COUNCIL
/s/ LINDSAY LARA
LINDSAY LARA, City Clerk
No. 1583 December 6, 2019