HomeMy WebLinkAboutMS MSS Rates 2014CITY of Agenda Item No. 5 . b
Meeting Date: December 16, 2013
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: CITY MANAGER
Prepared by: Cory Bytof,
Sustainability and Volunteer Program
Coordinator
City Manager Approval: 1
SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ESTABLISHING MAXIMUM RATES COLLECTED BY MARIN SANITARY
SERVICE FOR REFUSE AND RECYCLABLE MATERIAL COLLECTION
AND DISPOSAL SERVICES, TO BE EFFECTIVE JANUARY 1, 2014
RECOMMENDATION:
Conduct a public hearing and adopt the Resolution establishing maximum rates collected by
Marin Sanitary Service for Refuse and Recyclable Material Collection and Disposal Services, to
be effective January 1, 2014.
BACKGROUND:
Marin Sanitary Service ("MSS") provides refuse hauling and recycling services in numerous
areas of Marin County including within the City of San Rafael. The services within our City are
pursuant to a Collection Agreement, also known as a Franchise Agreement. The Franchise
Agreement outlines the services that must be provided by MSS and a rate setting methodology.
Each year, the City Council holds a public hearing to set the maximum collection rates that can
be collected by MSS in the City of San Rafael. The "Background" section of this staff report will
illustrate the overall context for the rate setting process. In general, the context includes 1) the
Franchise Agreement with MSS which includes the methodology for rate setting, 2) the
environmental initiatives and goals of the City, and 3) MSS' services and programs.
I. Franchise Agreement between City of San Rafael and Marin Sanitary Service
California cities are allowed to regulate local refuse and recycling services under Article XI of
the California Constitution and the CA Public Resources Code and to collect a franchise fee.
The City of San Rafael has a franchise agreement with MSS for refuse collection and recycling
services. The revenue -based methodology used to set the annual rates is contained in the
Second Amendment to the Amendment and Restatement of Collection Agreement of the City of
San Rafael with Marin Sanitary Service ("Franchise Agreement") approved by the City Council
on October 1, 2012. The Franchise Agreement sets forth the services to be provided by MSS,
FOR CITY CLERK ONLY
FileNo.:
Council Meeting:
Disposition: 0n1 f
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
the rate setting methodology and the franchise fee paid to the City of San Rafael. The City and
MSS first entered into a written agreement in 1966. The first Amendment and Restatement of
Collection Agreement of the City of San Rafael with Marin Sanitary Service occurred in 2001.
The Franchise Agreement also contains provisions for automatic annual extensions if certain
conditions are met.
As required under the current Franchise Agreement, the City Council holds an annual public
hearing to set the maximum collection rates that can be charged by MSS for services outlined
in said Agreement. Notice of the public hearing is published twice in the Marin Independent
Journal and mailed to all names on file with the City Clerk. 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.
The refuse collection rates are based on the contractor's costs of operations for wages and
benefits, disposal, fuel, equipment and lease expenses and certain allowable miscellaneous
expenses. The Franchise Agreement provides for a detailed review of MSS' operations every
three years. In the interim two-year period, annual summary reviews are conducted based on
the last detailed analysis. Summary reviews also incorporate the use of indices, analyze key
expense components such as disposal costs and project annual revenue requirements. The
last detailed review occurred last year for the 2013 rates. The proposed rate levels for 2014 are
based on a summary review.
Several of the surrounding cities and special districts also have contracts with MSS that utilize a
similar rate setting methodology. Therefore, San Rafael, Larkspur, Ross, the County of Marin
including within the Ross Valley Sanitary District boundaries, and the Las Gallinas Valley
Sanitary District ("the Franchising Agencies") have joined together in a Franchisors' Group to
share information and reduce costs.
The Franchising Agencies met to review MSS's rate proposals and the work of the consultant
conducting the rate review. The results of the rate review are presented in the "Analysis"
section of this report.
It should be noted that this is only the second rate review done in conjunction with the Second
Amendment and Restatement of the Amendment and Restatement of the Collection Agreement
incorporating new rate setting methodologies agreed upon by the Franchisors' Group. This
amendment included many new provisions in order to help stabilize rates and adjust to changes
in the industry and MSS' services. Among the new provisions are comprehensive annual
reporting to describe progress and achievements in meeting zero waste goals through
programs and activities approved by the Franchisors' Group, public education reporting, and
reporting on new technologies and industry best practices to enhance progress towards zero
waste.
For example, MSS and the Franchisors' Group now share equally in the net profits and losses
from recycling services through the creation of a recycling reserve fund. Once the reserve fund
achieves a minimum balance, the fund will be used for zero waste programs approved by the
Franchisors' Group. In years of poor recycling markets, the fund will assist in off -setting losses.
In addition, the Franchisors' Group will benefit from cost reductions in organics processing and
in transfer/transport charges attributable to non -Franchisors' Group entities. Another highlight
is that to enable longer term planning, MSS and the Franchisors' Group will annually prepare a
five-year capital requirements schedule which will include capital costs for equipment
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
replacement and for new programs.
There are key incentives that are built into the methodology for MSS to keep costs at an
appropriate level and to keep materials out of the landfill. For example, MSS will not be able to
include costs that are not necessary for the provision of services, unreasonable in their amount,
or exceed comparable charges for similar services by other companies in the Bay Area. Also,
with MSS and the Franchisors Group now sharing equally in recycling revenues, MSS and the
franchising agencies are financially incentivized to get recyclable materials out of the waste
stream.
The process of making changes to the methodology also identified issues that needed to be
examined regarding the rate structure itself and alternatives. Alternative rate structures are
intended to stabilize rate revenues and incentivize waste reduction, and depart from the current
practice of billing customers based on the size and frequency of collection of the refuse service
only (the "black can"). This is a new, but emerging trend as municipalities and refuse haulers
struggle with trying to achieve higher diversion rates, which cost more to attain, while
encouraging customers to smaller refuse containers, which brings in less revenue.
The Franchisors' Group is currently working with HF&H Consultants and Marin Sanitary Service
to conduct focus groups to better understand what customers know about their bill and MSS'
services in order to craft a pilot rate structure that can be tested sometime in the spring 2014.
The focus groups will help determine customer perceptions and motivations, as well as where
and how they get their information so that we can craft a pilot that is efficient and does not
cause undue confusion or repercussions. The analysis of this pilot will be brought to Council
along with possible alternative rate structures for consideration toward the end of 2014.
II. Environmental Initiatives and Goals
While perhaps the original purpose of refuse service had to do with public health and safety
around sanitation, it is increasingly geared more toward making progress on zero waste and
climate change goals, which are also forms of public health and safety. In the City's 2005 and
2010 Greenhouse Gas Inventories, decomposition of waste at the landfill was shown to be
responsible for 2-3% of the City's greenhouse gas (GHG) emissions. In April 2009, the City
Council adopted San Rafael's Climate Change Action Plan (CCAP), which included eight
specific programs under the category of "Reduce Material Consumption and Increase Resource
Re -Use." In July 2011, the City Council adopted the Sustainability Element of the City's
General Plan, which includes Policy SU -9 for implementation of programs to reduce material
consumption and waste generation. City staff provides the Council and community with a
quarterly update on the Climate Change Action Plan including zero waste initiatives.
San Rafael is a member of the Marin Hazardous and Solid Waste JPA (JPA), which is the
group charged with complying with the California Integrated Waste Management Act of 1989.
The goal of the Act is to reduce the flow of materials to landfills. The JPA Board is made up of
city and town managers and the county administrator. It is staffed by the Marin County Public
Works Department. San Rafael's City Manager was recently re -appointed as Chair. The JPA
also has a local task force made up of representatives from industry, the environmental
community and Marin's cities, towns and special districts. The JPA is funded by tipping fees at
Redwood Landfill.
In addition, the JPA prepared a Zero Waste Feasibility Study in December 2009 which identified
a goal of "achieving 80 percent diversion and zero waste in the next five to 17 years.' The City
of San Rafael is a member of the JPA and adopted a Zero Waste Resolution in August 2011
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
intended to be consistent with the JPA's goals. The City's resolution states that "the City of San
Rafael joins the Marin County Hazardous and Solid Waste JPA representing the eleven cities
and towns of Marin and County of Marin, and hereby adopts a goal of 80% landfill diversion by
2012 and 94% diversion by 2025, with diversion meaning the elimination of materials from
being disposed of in a landfill; diversion of recycling materials to be reprocessed into usable
forms with minimal transport, energy use and other deleterious environmental or social effects;
the maximum practical reuse, recirculation and repair of usable items and components; and the
reduction of unnecessary packaging."
MSS's current diversion rate is about 75%. The Commercial Food to Energy (F2E) program is
expected to increase the rate significantly, and MSS and the JPA are putting considerable time
and effort into getting organics out of the landfill. The City's consultant estimates that an 85%
diversion rate by 2020 will result in an emissions decrease of 22,500 metric tons of CO2.
Reaching an 85% diversion rate by 2015 would result in an additional emissions reduction of
11,200 metric tons. Zero Waste depends to a large degree on producer and consumer
behavior, and efforts will be required in the areas of extended producer responsibility and
product stewardship in order to get to the countywide goal of 94%.
In summary, the overall industry is moving from "bringing garbage to the landfill" to "resource
hauling" including transport to recyclers and re -users to find the next highest and best use with
the landfill being the last option. It should be noted that MSS has been a leader in this
movement, as they have invested in facilities and technologies to divert materials from the
landfill, without ratepayer assistance, including the construction of the Marin Resource
Recovery Center, Marin Recycling Center, and investments in the Zamora food scraps
processing facility.
MSS has also achieved full compliance with the California Air Resources Board requirements to
reduce public exposure to diesel smoke and particulates by replacing and retrofitting the
equipment fleet, thereby reducing air pollution in San Rafael. Marin Sanitary Service has an
excellent reputation in the community. In our most recent public opinion survey, San Rafael
residents were "Very Satisfied" with MSS, and they rated just under Fire/Paramedic and Library
Services as services with the highest satisfaction, a testament to the quality services they
provide to our rate payers.
Marin Sanitary Services and Programs
MSS's services and programs are best described by presenting residential, commercial and
multi -family services separately. The following provides information on recycling, refuse
container sizes, and food scraps for each.
Residential Service
Residential service includes single-family units and four or fewer units in a single structure. San
Rafael residential customers receive weekly recycling collection services. MSS accepts all
numbered plastics, glass, metals and paper from all customers in unlimited quantities for
recycling. Single family households are provided one dual sort recycling can but may put
additional recycling out in their own containers during regular pick-up times.
MSS offers San Rafael single-family residential customers the following waste cart sizes: 20
gallon, 32 gallon, 64 gallon, and 96 gallon. The majority of residential customers (69%) utilize a
32 gallon cart. Smaller households, seniors and intense recyclers benefit from the 20 gallon
cart which costs about 85% of the 32 gallon rate. 1,334 of San Rafael residential customers
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
(11 %) have switched to the 20 gallon cart, which represents an increase of 148 accounts over
last year. The remainder of the residential customers in San Rafael use 64 gallon carts (19%),
a slight decrease from 20% in 2012. The number of 96 -gallon cart customers is very
small, 180 (1 %), a reduction from a total of 186 accounts in 2012.
According to the 2008 California Waste Characterization Study, 25% of the residential waste
stream is made of food waste. MSS instituted a residential food scrap collection program in
2010. Full implementation of the program was completed in 2011. Since then, yard waste/food
scrap tonnage has increased approximately 250 tons per month.
The mixed yard and food scraps collected by MSS are delivered to Northern Recycling
Compost -Zamora Facility for composting. The Zamora facility is located in Yolo County and is
owned by MSS and three other partners. The facility is fully permitted to compost both food
and green waste. The compost is sold to the surrounding agricultural uses. There are no
closer permitted and available composting locations for this material. The permitted composting
facility at Redwood Landfill has some composting but the permit limits the amount of material
and the site is at full permit capacity. The tipping fee at the Zamora facility is slightly lower that
the cost at Redwood. MSS is not charging customers additional fees for transporting the
material to Zamora.
Edgar & Associates prepared a Greenhouse Gas Emissions Comparison between Redwood
Landfill and Zamora in December 2010. The study found a net greenhouse gas benefit from
composting food scraps at Zamora due to avoided emissions, even when considering the fuel
emissions expended on the round trip from San Rafael to Zamora.
Commercial & Multi -Family Service
Commercial and multi -family service includes all businesses and residential apartment buildings
with five or more units. Commercial customers receive separate recycling containers. MSS
also provides free cardboard pickup. The frequency of the cardboard pickup schedule is
tailored to meet the needs of the individual customer. MSS also offers commercial customers a
variety of container options ranging from 32, 64 and 96 gallon carts up to various sizes of yard
bins and service of commercial compactors. The carts and bins can be picked up from one to
six times per week.
In 2011, MSS introduced an enhanced commercial recycling program to increase the
commercial diversion rate and meet the requirements of AB 341. The program employs two
staff members dedicated to working with businesses, apartments and schools to help identify
additional diversion opportunities. Increased recycling can also assist in reducing refuse bills by
diverting more into recycling containers and reducing the size of the regular refuse
container. Also, MSS started offering composting services to all schools in their service area at
the beginning of 2013. So far, 21 of 50 K-12 schools (public and private) are participating.
Multi -family buildings can receive dual sort cans or separate recycling containers depending on
area available for can storage. Currently all multi -family units in the City are required to have a
minimum 32 gallon service for each unit. MSS started a pilot program in 2011 to provide for an
intensive recycler rate in multi -family buildings of 10 or fewer units.
Additional Services
The food scraps / green waste program is currently only available to customers in single family
residences, but MSS has plans to include multi -family residences and commercial entities in the
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
future. This year, MSS started the F2E program in conjunction with Central Marin Sanitation
Agency (CMSA). According to the 2008 California Waste Characterization Study, 16% of the
Commercial waste stream is from food waste. The F2E program is a result of a Methane
Capture study that evaluated the feasibility of adding processed food scraps into the CMSA
digesters to produce power for the plant. The study showed that the project was technically
feasible, had a reasonable capital payback period (5-7 years), and provided tangible benefits to
CMSA and MSS and their customers, the local landfill, and the environment. Currently, MSS
has 28 customers enrolled, 13 of which are in San Rafael, and dozens more interested in
joining the program as soon as MSS can accommodate them. The three year plan is for MSS to
have up to 250 customers enrolled by the end of 2015.
MSS also provides trash and recycling pick-up for City facilities, parks, and all public trash cans.
In addition, MSS provides numerous resources on their web site pertaining to their services and
various zero -waste programs such as those administered by the JPA, the California Product
Stewardship Council, etc. They provide various methods of payment to customers, annual
reporting to the City, and quarterly reporting on customer service complaints. They also work
with the City to conduct outreach regarding zero waste programs, and have a robust school
education program that is offered free to schools in their service areas.
ANALYSIS:
This section will specifically examine this year's rate recommendations. Over the past ten
years, the approved annual increase in Marin Sanitary Service rates have ranged from less
than one percent to over 10%. Last year's rate increase was 1.89%, which included a 1.67%
Refuse Vehicle Impact Fee adjustment, which hadn't been revised since 2004.
In 2013, the Franchising Agencies again selected HF&H Consultants, LLC (HF&H) to conduct
the rate review. HF&H has successfully reviewed the MSS rate proposal for several years, and
they were selected by Council earlier this year to conduct the rate structure work as well. MSS
reimburses the City for the consultant's fees for the rate review.
MSS submitted an initial rate proposal for 2014 with a proposed 8.9% increase over 2013 rates.
HF&H conducted a review of the MSS rate proposal and recommended adjustments for
Franchising Agencies based on allowable expenses in the rate setting methodology.
The full rate review and proposed adjustments are contained in the HF&H Report (Attachment
A). The following table contains a summary of the rate increase components.
Table 2: Rate Adjustment Components
2014 Component Percentages
Wages
0.86%
Benefits (including workers camp)
0.90%
Fuel & Oil
-0.41%
Disposal
2.16°!
Other Operating Costs
2.26!0
Subtotal Operations
5.77%
Revenue Surplus net of Franchise Fees
-0.25%
Total Rate Adjustment
5.52%
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
This year's rate increase is 5.52% due to a variety of factors as shown in the table. The first
three items, Wages, Benefits, and Fuel and Oil increase based upon agreed upon price indexes
and actual costs related to workers comp insurance and fuel and oil costs, as well as revised
projections for 2014 based on analysis of past years trends.
The second largest item, the Disposal increase, is somewhat exaggerated due to a shift in
baseline for last year's rates. Last year's projections in this area were very low due to a variety
of factors, including lower than normal fees for disposal at Redwood Landfill negotiated one
time by MSS. It also included a decrease in processing costs from our projections because
MSS was able to take more materials to the transfer station instead of the more expensive
MRRC (the recovery center for manual sorting and recycling). Finally, there was less material
processed from the residential sector, which meant lower costs.
This lower than normal year of costs resulted in favorable adjustments and a lower baseline
from which to project from. Fees have increased this year due to the Consumer Price Index
(CPI) and projections of materials processed. In addition, as stipulated in our rate methodology,
actual costs from 2012 and through October of 2013 necessitate creating new projections for
the 2014 expenses and revenue requirement. This feature of our rate methodology was set up
to make sure adjustments happened annually rather than getting too far out of balance with
actual costs.
The other major expense category, Other Operating Costs, includes increases in the following
areas: increases in JPA fees, an increase in depreciation expense as fully depreciated items
are replaced, CPI increases as per the rate setting methodology, and fees for the focus groups
for the alternative rate structure process.
Another item of note is the recycling revenue fund, initiated in the new rate methodology
mentioned above. The intention of this fund is to use recycling revenues to provide a means for
more zero -waste activities by Franchisor Group entities when the fund exceeds a base level
($250,000). The fund can also lessen the negative impact of poor years in the recycling market,
such as last year. Last year's recycling revenues resulted in a current balance in the fund of
$147,553. However, as intended, this reduction in recycling revenue did not impact the overall
rates.
Three alterations to the rate sheet this year have to do with the F2E program, the compactor
rates for commercial entities, and the low income rates. As anticipated, the F2E program is
diverting significant amounts of food waste from landfill. This program saves restaurants and
other food waste producers on their trash bill. However, these services are expensive to
operate, and MSS has proposed a cost structure that is 70% of the commercial trash rate.
Industry standards for similar food waste services are typically 70-80% of trash service, so this
fee is on the lower end of the scale.
The compactor rate, which necessitates a full fee regardless of the amount of material in the
compactor, will be replaced with a hauling and tipping charge, which is more equitable and
should result in lower rates for the small number of customers affected (22). Finally, MSS has
proposed changing the method of determination for the Low Income Rate to the more standard,
and well-established Pacific Gas and Electric CARE program rate. Qualifications are based on
the number of persons living in the home and the total annual household income rather than
federal HUD voucher standards.
With the above recommendation, the cost of a 32 gallon residential cart would be increased
approximately $1.63 per month, from $29.56 to $31.19. The cost of commercial service for a 96
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
gallon cart picked up once a week would be increased by approximately $4.86 per month, from
$88.11 to $92.97. Businesses with a vigorous recycling program could reduce their regular can
size or pickup schedule resulting in lower rates.
As part of conducting the rate application review, the franchising agencies asked HF&H to
conduct a survey of Bay Area refuse haulers. The actual survey results from our neighboring
communities are included in Attachment A. It summarizes the survey data for residential 30-35
gallon can weekly service with weekly curbside recycling and weekly green waste pickup. The
2014 proposed MSS rates of $31.19 in San Rafael is slightly lower than the Marin County
average of $32.94. The San Rafael rates have traditionally been comparable with rates in other
Bay Area jurisdictions.
Attachment A also identifies the City's three -yard commercial bin, (once a week) service to
those of all Bay Area cities and agencies with similar services. The San Rafael rate of $385.29
is lower than the average of other Marin County jurisdictions which is $433.39.
As in previous years, staff is recommending that the 5.52% increase be applied across the
board to all residential, multi -family and commercial service accounts. Actual rates for all
customers are provided as an attachment to the Resolution to this report and to the MSS
Amended Agreement. As requested by Council last year, staff is bringing this forward a month
earlier than normal so as to not have to adopt new rates retroactively, and to provide more time
for public notice prior to January 1 implementation.
RECOMMENDED ACTIONS:
1. Open the public hearing and accept public testimony;
2. Close the public hearing;
3. Accept the report and adopt the resolution as presented
FISCAL IMPACT:
The attachment to the Resolution (marked Exhibit C) contains the complete rate request. As
shown, the 5.52% overall increase is applied to all customer types and service options. If
approved, these rates are projected to satisfy the City's contractual obligations to meet the MSS
revenue requirement to cover San Rafael refuse and recycling service costs, including
franchise fees.
OPTIONS:
The City Council may choose to:
1. Accept the staff recommendation to institute the maximum MSS rate increases and
allocations recommended in the HF&H Report pursuant to the rate setting methodology set
forth in the current Franchise Agreement and shown in the attachment to the Resolution
effective January 1, 2014.
2. Not accept the findings of the HF&H Report and the staff recommendation and establish
different maximum rates. The rates ultimately adopted must meet the requirements of the
Franchise Agreement.
ATTACHMENTS:
Attachment A: Resolution with Rate Schedule (marked as Exhibit C)
Attachment B: Affidavit of Publication
Attachment C: HF&H Review of MSS Rate Application, including Bay Area Rate Survey
Marin Independent Journal
150 Alameda del Prado
PO Box 6150
Novato, California 94948-1535
(415) 382-7335
legals@marinij.com
SAN RAFAEL,CITY OF
PO BOX 151560/CITY CLERK, DEPT OF PUBLIC
WORKS, 1400 FIFTH AVE
SAN RAFAEL CA 94915-1560
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Marin
FILE NO. 0005045647
I am a citizen of the United States and a resident of the County
aforesaid: I am over the age of eighteen years, and not a party to
or interested in the above matter. I am the principal clerk of the
printer of the MARIN INDEPENDENT JOURNAL, a newspaper of
general circulation, printed and published daily in the County of
Marin, and which newspaper has been adjudged a newspaper of
general circulation by the Superior Court of the County of Marin,
State of California, under date of FEBRUARY 7, 1955, CASE
NUMBER 25566; that the notice, of which the annexed is a printed
copy (set in type not smaller than nonpareil), has been published in
each regular and entire issue of said newspaper and not in any
supplement thereof on the following dates, to -wit:
12/6/2013, 12/9/2013
i certify , or declare" under the penalty of perjury that the foregoing
is true and correct.
Dated this 9th day of December, 2013.
Signature
PROOF OF PUBLICATION
EXHIBIT B
Legal No. 0005045647
CITY OF SAN RAFAEL
NOTICE OF PUBLIC HEARING
The City Council pf the City of San Rafael will
hold a pubic hearing:
PURPOSE: Public Hearing:
To consider a request by hiarin Sanitary Serv-
ice for a rite increase for refuse collection and
ecycling ser+.ices and adoption of a Resolution
amending the agreement setting mariinum
rates for the year 2014.
DATE/TIME/PLACE:
Monday, December 16, 2013, at 7:00 p.m.
City Hall Council Chambers,
1400 Fifth Avenue. San Rafael
WHAT WILL HAPPEN:
Youmay comment an the proposed Resolution.
The City Council will consider all public testi-
mony and will then decide whether to approve
the Resolution.
IF YOU CANNOT ATTEND:
You may send a letter to Esther C. Beirne, City
Clerk, City of San Rafael, P.O. Box 151360, San
RafaeL CA 9t 15-1560. You may also hand de -
Nora letter to the City Clerk prior to the
meeting.
FOR MORE INFORMATION:
You may crntact Cory Bytof, Sustainability and
Volunteer Program Coordinator, at (415) 485-
3407. Office hours are Monday through Friday.
8:30 a.m, to 5:00 P.M.
SAN RAFAEL CITY COUNCIL
/s/ ESTHER C. BEIRNE
ESTHER C. BEIRNE. City Clerk
No. 1488 Decemher 6. 2013, December 9, 2013
RESOLUTION NO.13663
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ESTABLISHING
MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE FOR REFUSE AND
RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES, TO BE
EFFECTIVE JANUARY 1, 2014
WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into a
written Amendment and Restatement of Collection Agreement of the City of San Rafael and
Marin Sanitary Service dated September 4, 2001; and,
WHEREAS, the City of San Rafael and Marin Sanitary Service have since entered
into a written Second Amendment to the Amendment and Restatement of Collection
Agreement of the City of San Rafael and Marin Sanitary Service dated November 14, 2012;
and,
WHEREAS, Section 3 (B) of the Amendment and Restatement of Collection
Agreement of the City of San Rafael and Marin Sanitary Service provides for maximum rates
allowed to be collected by Marin Sanitary Service to be amended from time to time by the
City Council; and,
WHEREAS, Exhibit "C" of the Amendment and Restatement of Collection Agreement
of the City of San Rafael and Marin Sanitary Service provides for approved rate setting
tables, as amended, to be included as part of this Agreement; and,
WHEREAS, Marin Sanitary Service has submitted a rate application request using
the methodology outlined under Section 3 (A) of the Amendment and Restatement of
Collection Agreement of the City of San Rafael and Marin Sanitary Service; and,
WHEREAS, the City of San Rafael has conducted a review of said rate application
and produced a report recommending rate and fee adjustments; and,
WHEREAS, the City of San Rafael has determined that such rate and fee
adjustments are proper, in the best interest of all citizens, and will promote public health,
safety and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES
RESOLVE, DETERMINE AND ORDER AS FOLLOWS: The following schedule of
maximum rates and fees, attached hereto as "Exhibit C" is hereby approved to be collected
by Marin Sanitary Service for refuse and recyclable material collection and disposal services,
to be effective January 1, 2014. Said "Exhibit C" shall be incorporated as the revised Exhibit
"C" and shall be included as part of the Second Amendment to the Amendment and
Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service
dated November 14, 2012.
I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of San Rafael, held on Monday, December 16, 2013, by the following
vote, to wit:
AYES: Councilmembers: Bushey, Colin, McCullough & Vice -Mayor Connolly
NOES: Councilmembers: None
ABSENT: Councilmembers: Mayor Phillips
yd_
ESTHER C. BEIRNE, City Clerk
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 01/01/2014
Rate Increase: 5.52%
Rates are per month unless otherwise specified.
Residential
Standard Base Rates
20 gallon can - flat*
32 gallon can - flat
64 gallon can - flat
96 gallon can - flat
20 gallon can - hill*
32 gallon can - hill
64 gallon can - hill
96 gallon can - hill
'New rate in 2008. For single family residential
customers. Subject to account review by MSS
Low Income Rates*
Low Income - 32 gallon can - flat
Low Income - 64 gallon can - flat
Low Income - 32 gallon can - hill
Low Income - 64 gallon can - hill
Based on Pacific Gas & Electric CARE Program guidelines
Residential customers only
Other Services
Compacted 32 gallon
Compacted 64 gallon
Distance 5'-50'
Distance over 50' (per 50' each can)
Additonal Yard Waste Cart Rental*
'One (1) additional company -provided cart per customer
Discontinued Rates**
Senior rate - flat** (Bi -weekly service)
Senior rate - hill** (Bi -weekly service)
"Customers with these rates prior to 2005 will keep
existing rate type. No new customers wil be added
with this rate type.
Apartments
32 gallon can - flat
64 gallon can - flat
96 gallon can - flat
32 gallon can - hill
64 gallon can - hill
96 gallon can - hill
"`Rates are per container* per # of pickupsiwk
"`Minimum of one can per unit
2014
RATE
2013
RATE
2014
INCREASE
2014
% INCR.
$ 26.51
$ 25.13
$ 1.38
5.49%
31.19
29.56
28.28
1.63
26.80
5.51%
62.38
59.12
56.56
3.26
53.60
5.51%
93.57
88.68
1.65
4.89
1.56
5.51%
30.03
28.46
35.33
1.57
33.48
5.52%
35.33
33.48
70.66
1.85
66.96
5.53%
70.66
66.96
105.99
3.70
100.44
5.53%
105.99
100.44
5.55
5.53%
$ 24.91
$ 23.61
$ 1.30
5.51%
49.82
47.22
2.60
5.51%
28.28
26.80
1.48
5.52%
56.56
53.60
2.96
5.52%
$ 62.38
$ 59.12
$ 3.26
5.51%
124.76
118.24
6.52
5.51%
4.05
3.84
0.21
5.47%
8.19
7.76
0.43
5.54%
1.65
1.56
0.09
5.77%
$ 22.02
$ 20.87
$ 1.15
5.51%
28.03
26.56
1.47
5.53%
$ 31.19
$ 29.56
$ 1.63
5.51%
62.38
59.12
3.26
5.51%
93.57
88.68
4.89
5.51%
35.33
33.48
1.85
5.53%
70.66
66.96
3.70
5.53%
105.99
100.44
5.55
5.53%
12/9/2013 1 of 5 San Rafael - Exhibit C Rate Sheet 2014.xls
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 01/01/2014
Rate Increase: 5.52%
2014
2013
2014
2014
Rates are per month unless otherwise specified.
RATE
RATE
INCREASE
% INCR.
Apartments (cont.)
FL 2 yd bin 1 )/week
$ 296.00
$ 280.52
$ 15.48
5.52%
FL 2 yd bin 2 x/week
678.48
642.99
35.49
5.52%
FL 2 yd bin 3 x/week
1,027.03
973.30
53.73
5.52%
FL 2 yd bin 4 x/week
1,381.73
1,309.45
72.28
5.52%
FL 2 yd bin 5 x/week
1,742.66
1,651.50
91.16
5.52%
FL 2 yd bin 6 x/week
2,109.76
1,999.39
110.37
5.52%
FL 3 yd bin 1 x/week
$ 385.27
$ 365.12
$ 20.15
5.52%
FL 3 yd bin 2 x/week
706.10
669.16
36.94
5.52%
FL 3 yd bin 3 x/week
1,073.09
1,016.95
56.14
5.52%
FL 3 yd bin 4 x/week
1,449.34
1,373.52
75.82
5.52%
FL 3 yd bin 5 x/week
1,834.88
1,738.89
95.99
5.52%
FL 3 yd bin 6 x/week
2,229.70
2,113.06
116.64
5.52%
FL 4 yd bin 1 x/week
$ 549.64
$ 520.89
$ 28.75
5.52%
FL 4 yd bin 2 x/week
1,012.96
959.97
52.99
5.52%
FL 4 yd bin 3 x/week
1,537.90
1,457.45
80.45
5.52%
FL 4 yd bin 4 x/week
2,075.33
1,966.76
108.57
5.52%
FL 4 yd bin 5 )/week
2,577.00
2,442.19
134.81
5.52%
FL 4 yd bin 6 x/week
3,187.29
3,020.56
166.73
5.52%
FL 5 yd bin 1 )/week
$ 594.54
$ 563.44
$ 31.10
5.52%
FL 5 yd bin 2 )/week
1,176.83
1,115.27
61.56
5.52%
FL 5 yd bin 3 x/week
1,788.46
1,694.90
93.56
5.52%
FL 5 yd bin 4 )/week
2,415.54
2,289.18
126.36
5.52%
FL 5 yd bin 5 x/week
3,058.13
2,898.15
159.98
5.52%
FL 5 yd bin 6 x/week
3,716.17
3,521.77
194.40
5.52%
FL 6 yd bin 1 xlweek
$ 696.80
$ 660.35
$ 36.45
5.52%
FL 6 yd bin 2 x/week
1,412.21
1,338.33
73.88
5.52%
FL 6 yd bin 3 x/week
2,146.14
2,033.87
112.27
5.52%
FL 6 yd bin 4)/week
2,898.68
2,747.04
151.64
5.52%
FL 6 yd bin 5 x/week
3,669.76
3,477.79
191.97
5.52%
FL 6 yd bin 6 x/week
4,459.39
4,226.11
233.28
5.52%
RL 1 yd bin 1 x/week
$ 193.99
$ 183.84
$ 10.15
5.52%
RL 1 yd bin 2 x/week
391.07
370.61
20.46
5.52%
RL 1 yd bin 3 x/week
591.28
560.35
30.93
5.52%
RL 1 yd bin 4 x/week
794.57
753.00
41.57
5.52%
RL 1 yd bin 5 x/week
1,000.92
948.56
52.36
5.52%
RL 1 yd bin 6 x/week
1,210.38
1,147.06
63.32
5.52%
(No longer offered to new customers)
12/9/2013 2 of 5 San Rafael - Exhibit C Rate Sheet 2014 As
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 01/01/2014
Rate Increase:
5.52%
2014
% INCR.
$ 281.27
64 gallon can
2014
Rates are
per month unless otherwise specified.
RATE
15.48
Apartments (cont.)
852.90
RL
2 yd bin 1 x/week
$ 296.80
RL
2 yd bin 2 x/week
593.79
RL
2 yd bin 3 x/week
899.98
RL
2 yd bin 4 x/week
1,212.36
RL
2 yd bin 5 x/week
1,742.66
RL
2 yd bin 6 x/week
2,109.76
per pickup
Compacted refuse:
2 yd bin
RO
Hauling Charge (Per container per pull)
$ 192.18
RO
Tipping Fee per ton
$ 85.50
Commercial
2014
INCREASE
32 gallon can
2014
% INCR.
$ 281.27
64 gallon can
5.52%
562.73
96 gallon can
31.06
15.48
Compacted 32 gallon
852.90
5.52%
Compacted 64 gallon
644.46
5.52%
Food waste 32 gallon
5.52%
63.42
Food waste 64 gallon
5.52%
Bags (32 gallon)
5.52%
91.16
Rates are per container, per # of pickups/wk
Food Waste service:
no charge for the
first pickup of first cart
FL
2 yd bin
per pickup
FL
2 yd bin
1 x/week
FL
2 yd bin
2 x/week
FL
2 yd bin
3 x/week
FL
2 yd bin
4 x/week
FL
2 yd bin
5 x/week
FL
2 yd bin
6 x/week
FL
3 yd bin
per pickup
FL
3 yd bin
1 x/week
FL
3 yd bin
2 x/week
FL
3 yd bin
3 x/week
FL
3 yd bin
4 x/week
FL
3 yd bin
5 x/week
FL
3 yd bin
6 x/week
FL
4 yd bin
per pickup
FL
4 yd bin
1 x/week
FL
4 yd bin
2 x/week
FL
4 yd bin
3 x/week
FL
4 yd bin
4 x/week
FL
4 yd bin
5 x/week
FL
4 yd bin
6 x/week
FL
5 yd bin
per pickup
FL
5 yd bin
1 xiweek
FL
5 yd bin
2 x/week
FL
5 yd bin
3 x/week
FL
5 yd bin
4 xiweek
FL
5 yd bin
5 x/week
FL
5 yd bin
6 x/week
$ 30.99
61.98
92.97
61.98
123.96
21.69
43.39
30.99
2013
RATE
2014
INCREASE
2014
% INCR.
$ 281.27
$ 15.53
5.52%
562.73
5.52%
31.06
15.48
5.52%
852.90
5.52%
47.08
644.46
5.52%
1,148.94
5.52%
63.42
1,031.68
5.52%
1,651.50
5.52%
91.16
5.52%
1.999.39
110.37
5.52%
$ 29.37
$ 1.62
5.52%
58.74
5.52%
3.24
5.52%
88.11
15.48
4.86
5.52%
5.52%
58.74
644.46
3.24
35.57
5.52%
117.48
1,031.68
6.48
977.71
5.52%
29.37 1 1 1.62 1 1 5.52%
$ 75.10
$ 71.17
$ 3.93
5.52%
296.00
280.52
15.48
5.52%
680.03
644.46
35.57
5.52%
1,031.68
977.71
53.97
5.52%
1,391.02
1,318.25
72.77
5.52%
1,758.14
1,666.17
91.97
5.52%
2,132.96
2,021.38
111.58
5.52%
$ 92.20
$ 87.38
$ 4.82
5.52%
385.27
365.12
20.15
5.52%
717.45
679.92
37.53
5.52%
1,093.57
1,036.36
57.21
5.52%
1,481.30
1,403.81
77.49
5.52%
1,880.65
1,782.27
98.38
5.52%
2,291.58
2,171.70
119.88
5.52%
$ 134.94
$ 127.88
$ 7.06
5.52%
549.64
520.89
28.75
5.52%
1,016.05
962.90
53.15
5.52%
1,547.19
1,466.25
80.94
5.52%
2,093.91
( 1,984.37
i
j 109.54
j 5.52%
2.507.541
I 2,376.361
i 131.18
5.52%
3,233.73
j 3,064.57
(
169.16
5.529/r,
$ 143.87
$ 136.34
$ 7.53
5.52%
594.54
I 563.44
31.10
5.52%
1.195.73
1,133.18
I
62.55
5.52%
1,822.64
1.727.29
95.35
5.52%
2,468.85
2,339.70
1 129.15
1
5.52%
3.134.43
2,970.46
163.97
5.52%
3819.34
3.619.54
i 199.80
5.52%
129;2013 3 of 5 San Rafael - Exhibit C Rate Sheet_2014.xis
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 01/01/2014
Rate Increase: 5.52%
2014
2013
2014
2014
Rates are per month unless otherwise specified.
RATE
RATE
INCREASE
% INCR.
Commercial (cont)
FL 6 yd bin per pickup
$ 164.01
$ 155.43
$ 8.58
5.52%
FL 6 yd bin 1 x/week
705.84
668.92
36.92
5.52%
FL 6 yd bin 2 x/week
1,434.87
1,359.81
75.06
5.52%
FL 6 yd bin 3 x/week
2,187.16
2,072.74
114.42
5.52%
FL 6 yd bin 4 x/week
2,962.62
2,807.64
154.98
5.52%
FL 6 yd bin 5 x/week
3,761.29
3,564.53
196.76
5.52%
FL 6 yd bin 6 x/week
4,583.20
4,343.44
239.76
5.52%
RL 1 yd bin 1 x/week
$ 201.31
$ 190.78
$ 10.53
5.52%
RL 1 yd bin 2 x/week
406.47
385.21
21.26
5.52%
RL 1 yd bin 3 x/week
615.54
583.34
32.20
5.52%
RL 1 yd bin 4 x/week
828.46
785.12
43.34
5.52%
RL 1 yd bin 5 x/week
1,045.24
990.56
54.68
5.52%
RL 1 yd bin 6 x/week
1,265.91
1,199.69
66.22
5.52%
(No longer offered to new customers)
RL 2 yd bin 1 x/week
$ 304.89
$ 288.94
$ 15.95
5.52%
RL 2 yd bin 2 x/week
617.53
585.23
32.30
5.52%
RL 2 yd bin 3 x/week
937.88
888.82
49.06
5.52%
RL 2 yd bin 4 x/week
1,266.01
1,199.78
66.23
5.52%
RL 2 yd bin 5 x/week
1,758.14
1,666.17
91.97
5.52%
RL 2 yd bin 6 x/week
2,132.96
2,021.38
111.58
5.52%
RO 10 yd box per pickup
233.66
$ 221.44
$ 12.22
5.52%
RO 10 yd box 1 x/week
994.81
942.77
52.04
5.52%
RO 10 yd box 2 x/week
2,035.83
1,929.33
106.50
5.52%
RO 10 yd box 3 x/week
3,124.34
2,960.90
163.44
5.52%
RO 10 yd box 4 x/week
4,258.64
4,035.86
222.78
5.52%
RO 10 yd box 5 x/week
5,439.39
5,154.84
284.55
5.52%
RO 10 yd box 6 x/week
6,666.52
6,317.78
348.74
5.52%
RO 12 yd box per pickup 1 $ 280.41 1 1 $ 265.74 1 1 $ 14.67 1 1 5.52%
129!2013 4 of 5 San Rafael - Exhibit C Rate Sheet 2014.xls
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 01/01/2014
Rate Increase: 5.52%
2014
2013
2014
2014
Rates are per month unless otherwise specified.
RATE
RATE
INCREASE
% INCR.
Commercial (cont.)
RO 18 yd box per pickup
$ 420.62
$ 398.62
$ 22.00
5.52%
RO 18 yd box 1 x/week
1,786.82
1,693.35
93.47
5.52%
RO 18 yd box 2 x/week
3,657.24
3,465.92
191.32
5.52%
RO 18 yd box 3 x/week
5,611.18
5,317.65
293.53
5.52%
RO 18 yd box 4 x/week
7,648.70
7,248.58
400.12
5.52%
RO 18 yd box 5 x/week
9,769.77
9,258.69
511.08
5.52%
RO 18 yd box 6 x/week
11,974.43
11,348.02
626.41
5.52%
RO 20 yd box per pickup
$ 467.36
$ 442.91
$ 24.45
5.52%
RO 20 yd box 1 x/week
1,985.38
1,881.52
103.86
5.52%
RO 20 yd box 2 x/week
4,063.60
3,851.02
212.58
5.52%
RO 20 yd box 3 x/week
6,234.65
5,908.50
326.15
5.52%
RO 20 yd box 4 x/week
8,498.54
8,053.96
444.58
5.52%
RO 20 yd box 5 x/week
10,855.32
10,287.45
567.87
5.52%
RO 20 yd box 6 x/week
13,304.90
12,608.89
696.01
5.52%
RO 25 yd box per pickup
$ 584.18
$ 553.62
$ 30.56
5.52%
RO 25 yd box 1 x/week
2,777.27
2,631.98
145.29
5.52%
RO 25 yd box 2 x/week
5,684.51
5,387.14
297.37
5.52%
RO 25 yd box 3 x/week
8,380.02
7,941.64
438.38
5.52%
RO 25 yd box 4 x/week
11,422.76
10,825.21
597.55
5.52%
RO 25 yd box 5 x/week
14,590.48
13,827.22
763.26
5.52%
RO 25 yd box 6 x/week
17,883.04
16,947.54
935.50
5.52%
Compacted refuse:
RO Hauling Charge (Per container per pull)
$ 192.18
RO Tipping Fee per ton
$ 85.50
Lock Charges - single pickup
$ 4.52
$ 4.28
$ 0.24
5.61%
Lock Charges - weekly pickup
20.57
19.49
1.08
5.54%
Refuse per yard - per pickup
28.68
27.18
1.50
5.52%
Box Rental - 1 yard
60.74
57.56
3.18
5.52%
Box Rental - 2 yard
68.37
64.79
3.58
5.53%
Box Rental - 3-5 yard
75.62
71.66
3.96
5.53%
Box Rental - 6 yard
85.44
80.97
4.47
5.52%
Box Rental - 10 yard
100.81
95.54
5.27
5.52%
Box Rental - 18 yard
202.02
191.45
10.57
5.52%
Box Rental - 20 yard
204.99
194.27
10.72
5.52%
Box Rental - 25 yard
213.59
202.42
11.17
5.52%
Return Trip Charge
44.46
42.13
2.33
5.53%
Steam Clean Bin Charge
89.09
84.43
4.66
5.52%
Overweight Charge Per Ton***
167.48
158.72
8.76
5.52%
-Comm] boxes exceeding 300lbs yard
129/2013 5 of 5 San Rafael - Exhibit C Rate Sheet_2014.xis
December 10, 2013
This report provided electronically to save environmental resources
:Hf =n
December 10, 2013
Sent via email
Mr. Daniel Schwarz
City Manager
City of Larkspur
400 Magnolia Avenue
Larkspur, CA 94939
Mr. Michael Frost
Deputy Director of Public Works
County of Marin
3501 Civic Center Drive, Room 304
San Rafael, CA 94903-4155
Ms. Susan McGuire
Administrative Services Manager
Las Gallinas Valley Sanitary District
300 Smith Ranch Road
San Rafael, CA 94903
Mr. Jim Schutz
Assistant City Manager
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94919-1560
Mr. Rob Braulik
Town Manager
Town of Ross
31 Sir Francis Drake Blvd
Ross, CA 94957
Reference Number: S3847
Subject: Review of Marin Sanitary Service's 2014 Rate Application
Dear Ms. McGuire and Messrs. Schwarz, Schutz, Frost, and Braulik:
On August 1, 2013, Marin Sanitary Service (MSS) submitted its application for an 8.98% increase to its
solid waste rates, effective January 1, 2014. HF&H conducted our review of the application based on the
rate methodology agreed to between MSS and the cities of San Rafael and Larkspur, the Town of Ross,
the County of Marin, and the Las Gallinas Valley Sanitary District (LGVSD) collectively referred to as the
"Franchisors". We find that a 5.52% increase is appropriate. The following table summarizes, by
jurisdiction, the current and proposed 32 -gallon residential rates, which are the most common
subscription level.
HF H CCtNSt7LTA :'
Table 1: Residential 32 -Ballon Rate Summary
Jurisdiction
Current Rate
($/mo.)
Proposed Rate
($/mo.)
$ Difference
San Rafael
$29.56
$31.19
$1.63
Las Gallinas Valley Sanitary District
$25.83
$27.26
$1.43
Larkspur
$32.47
$34.26
$1.79
Ross
$28.26
$29.82
$1.56
Ross Valley Sanitary District
$30.63
$32.32
$1.69
County of Marin
$30.06
$31.72
$1.66
Upon receipt of the application, HF&H reviewed the documents for completeness and compliance with
the procedures agreed upon by MSS and the Franchisors and verified the mathematical accuracy and
logical consistency of the supporting schedules.
Based on our review of the application, we determined that a net rate increase of 5.52% to rates is
appropriate to compensate MSS for its projected expenses based on the agreed upon procedures. The
following table summarizes the components of the rate adjustment:
I ante Z: Kate Aajustment components
2014 Component Percentages
Wages 0.86%
Benefits (including workers comp) 0.90%
Fuel & Oil -0.41%
Disposal 2.16%
Other Operating Costs* 2.26%
Subtotal Operations 5.77%
Revenue Surplus net of Franchise Fees -0.25%
Total Rate Adjustment 5.52%
` Includes depreciation, other vehicle -related costs, profit, general &
administrative costs (e.g., public education, customer service, etc.) .
This lower -than -applied -for adjustment is based on several adjustments to MSS' rate calculation (agreed
upon by MSS management) as described in Section IV of the report and reflected in Table 5 and
Attachment 2.
HF H .
Summary of Significant Changes for -
2014 Rate Adjustment Components (5.52%)
Disposal — 2.16%
As shown in Table 2 the disposal expense component contributed 2.16% to the recommended 5.52%
rate increase for the current services. The increase of 2.16% ($474,022) is the result of two primary
factors:
1. Current Year Protected Disposal Expense - An increase in the per ton disposal/processing fees
(by the change in the applicable consumer price index), partially offset by the reduction in
residential tonnage collected; and,
2. Prior Years' Disposal Reconciliation Positive Adjustments - The disposal expense reconciliation
adjustment in accordance with the approved rate setting methodology. The adjustment reflects
the correction of previous projections for both rates and tonnage based on data and expenses
received at the time of the analysis.
Table 3: Disposal Expense Variance Analysis
Projected Disposal Expense included in Rates
Prior Years' Disposal Reconciliation Positive Adjustments (2)
Current Year Projected Disposal Expense (1)
Other Operating Costs — 2.26%
2013
2014
Prior Year
Current Year
Rate Setting
Rate Setting
Process
Process Difference
$ 3,013,383 $ 3,487,405 $ 474,022 1
601,365 $ 144,460 $ (456,905)1
$ 3,614,748 $ 3,631,865 $ 17,117 1
The increase in Other Operating Costs contributed 2.26% to the recommended 5.52% rate increase for
current services. The increase resulted from:
1. An increase in the JPA fees due to a per ton rate increase from the JPA);
2. An increase in depreciation as fully depreciated assets are replaced);
3. Focus group facilitation fees as part of the current rate study and
HF H Co�rsur.rarrrs
4. CPI increases in the base expenses in accordance with the approved rate setting methodology.
Other Expenses and Revenue: Wages, Benefits, Fuel & Oil, and Revenue —1.1%
Minor adjustments to the other expenses and revenues accounted for the balance of the 1.1% increase
in the Current Services revenue requirement.
Reserves for Future Diversion Programs
During 2012, the Franchisors and MSS agreed to share the net revenues from the processing of
recyclable materials collected from the Franchisors' customers, beginning with actual results in calendar
year 2011. It was agreed that the net revenues would be contributed to a reserve to fund one-time
costs of future diversion programs. As reflected in Table 4, the reserve amount decreased $85,154 to
$147,553. The decrease in the reserve is primarily due to a decrease in commodity pricing that
decreased the average recycling revenue per ton for 2012 by $18.13 per ton ($182.80 to $164.67). The
processing costs have increased due to a combination of inflation and fixed costs being spread over
fewer tons processed. Additionally, the 2013 reserve was updated to reflect the final approved
operating ratio of 95% and the exclusion of HHW grant revenue (a reduction of $34,699).
Table 4: Summary of Net Recyclable Revenue Reserve
Rate Year
Based on
Financial Year
Net Addition
(Reduction)
to Reserve
2013
2011
$ 232,707
2014
2012
$ (85,154)
Reserve Balance
$ 147,553
The next update to the reserve will be completed as part of the 2015 rate application process and will be
based upon 2013 calendar year results. Should the net positive value in the reserve exceed $250,000,
then the excess shall be used to offset one-time costs related to diversion programs approved by a
majority of the agencies comprising the Franchisors' Group. Should the net negative value in the reserve
exceed a negative $250,000, the City or the Contractor may request a review of the actual costs and
revenues of providing the service at which time the Franchisors Group and Contractor have agreed to
meet and confer to determine a reasonable remedy to the Contractor.
:H,FHC�QNS JLTAN
We would like to express our appreciation to the MSS management and staff for their assistance. In
addition, we express our appreciation to each of you for assistance and guidance during the course of
the review. Should you have any questions, please call me at 925-977- 6961.
Very truly yours,
HF&H CONSULTANTS, LLC
Marva M. Sheehan, CPA
Vice President
cc: Mr. Joe Garbarino Jr., Marin Sanitary Service
Ms. Patricia Garbarino, Marin Sanitary Service
Mr. Neil Roscoe, Marin Sanitary Service
HF&H Client Files
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TABLE OF CONTENTS
SECTION 1. BACKGROUND ......................................................................................... 1
Description 0fCurrent Services ... ..................... ............ .................. ....................... 1
Rate AdiUSin1entMethodology ................................. ................. ........... ...... .......... '2
HF&HScope D[Review ........ ...... ............... ......................................... ....... ........ 2
Limitations.................. ...................... ........................................................................ 4
CU[Mc,mfOperations ........... .................. ............. ............. ........... --........... ........ 5
Operation hGpk]WBmeOtPlan ......... ----............ —........................ ...... ............. 6
CoDO[0-ercial Fo0d,[OEnergy /F2E\--------------------'6
Profit... --....... —.......... .......... ......... --------............. ............. --........ 7
KflS-S`Rafe AdjuStDnGD...... ----------------...... —....... '7
AdiuStOlBA&'--' hJ 2014 P jBCt;,:,;d' — n5�ShOr{|�[K�ntOperations .............. ......... .... 9
PdiU8t118nt�t-0P j--Ciecl Revenue at CWrKei'LRates ..... ...... --- .......... —..... ....... 1O
4diUstD)-eUts10NlEt Recyclable ReVeOU�R, 2--e|Ve..... ---........ —...... ....... '10
SECTION V. RATE ADJUSTMENT ................................................................................ U
Rate 4diU5inleDt............... —.......... ----............ ----_--------......
11
Survey ofCUOlp@caihieRate's ..... ---............ —.......... ......... --------'17
ATTACHMENTS
Attachment 1—Marin Sanitary Service Rate Application Summary
AttachmentZ—Adjuste Rate Application Summary
Attachment 3—Rate Survey
Attachment 4 — Chart of Residential 32 -Gallon Rates
Attachment 5 — Chart of Commercial 3 Cubic Yard Rates
HF&H Consultants, LLC i November 27, 2013
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SECTION I. BACKGROUND
Description of Current Services
Marin Sanitary Service (MSS) provides franchised refuse, recyclable materials, and yard waste collection
and processing services to the residents and businesses of the cities of San Rafael and Larkspur, the
Town of Ross, the County of Marin, and the Las Gallinas Valley Sanitary District (LGVSD) collectively
referred to as "Franchisors". In addition, MSS and its non -franchised related entities (Marin Resource
and Recovery Association (MRRA), the Marin Resource Recovery Center (MRRC), and Northern Recycling
Compost — Zamora (Zamora), provide solid waste, recyclable materials, and yard waste collection and
processing services to the residents and businesses of San Anselmo, the north area of the Ross Valley
Sanitary District (RVSD), Fairfax, and San Quentin prison. MSS also provides non -franchised debris box,
street sweeping, and document shredding services to residents and businesses throughout the County
of Marin that contract for their services.
MSS delivers refuse collected from waste generators within the Franchisors' service area to the MSS
transfer station and then transports it to the Redwood Sanitary Landfill (Redwood) an unrelated party.
MSS delivers recyclable materials to the non -franchised MRRA, where materials are processed and
marketed. MSS delivers recyclable -rich loads of refuse (typically commercial) and separated yard waste
loads (collected from residents), along with public self -haul loads to the non -franchised MRRC where
recyclable materials are extracted from the waste stream, processed, and marketed. The MRRC delivers
residual waste (the materials remaining after the recyclable materials are extracted) to the MSS transfer
station. This residual waste is transferred to Redwood. Through a third party, MSS delivers yard waste
to Zamora, located in Yolo County, for composting.
In early 2010, the Franchisors approved a pilot food waste collection program allowing some residential
customers to include food waste with their yard waste. The pilot was well received and with the
approval of the Franchisors, MSS extended this service to its remaining customers beginning in March
2011. State regulations mandate that this comingled material (food waste and yard waste) is collected
every week, therefore MSS expanded its yard waste service from bi-weekly to weekly collection from
residential customers for the all of the Franchisors. This comingled material is collected in the same way
as yard waste and delivered to Zamora for composting.
In 2012, HF&H assisted the Franchisors in the negotiation of the revised Contractor's Revenue
Requirement and Rate Adjustment methodology. Significant revisions included documentation of: 1)
procedures that had been agreed to by MSS and the Franchisors over the years but not documented; 2)
related -party fees and how they will be adjusted in the future; 3) additional reporting to be submitted
with the rate adjustment applications; and, 4) procedures to develop a reserve for diversion programs
by sharing in MRRA's net revenues (net recyclables processing revenues).
HF&H Consultants, LLC 1 November 27, 2013
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SECTION II. RATE REVIEW APPROACH
The Rate Adjustment Methodology was developed in cooperation with MSS and approved by the
Franchisors Group in 2001. In 2012, the Franchisors negotiated the revised the Contractor's Revenue
Requirement and Rate Adjustment methodology with MSS.
This revised method was used to determine 2014 recommended rates. The final projected 2013 year
expenses from the 2013 detailed rate review are adjusted by changes in certain indices (e.g., CPI,
employment cost index and the motor vehicle related index). Also, new projections of certain costs
(e.g., disposal expense, fuel expense, workers' compensation expense, depreciation, interest expense,
and fees imposed by the Marin County Hazardous and Solid Waste Management Joint Powers Authority
(JPA)) and revenues (e.g., collection rate revenues) were made to determine the 2014 rates. Section III
describes the methodology in more detail and findings from the application of the methodology to MSS'
Application.
The Franchisors engaged HF&H in August 2013 to perform a review of the Application in accordance
with the Rate Adjustment Methodology (i.e., "agreed upon procedures"). The scope of this review is
described in our engagement letter dated July 10, 2013. These procedures included the following
activities:
• Reviewing MSS management's projection of collection and non -collection revenues for the 12 -
month periods ending December 31, 2013, and 2014.
• Comparing the results to MSS's audited financial statements for rate year 2012 and year-to-
date revenues and expenses for 2013 and request explanations for variances.
• Reviewing MSS' calculation of the three year trend in subscription levels to determine an
average surplus or shortfall in rate revenues. The average surplus or shortfall will be used in
the determination of gross rate revenues.
• Reviewing the appropriateness of MSS management's classification of expenses into the
various expense categories.
• Reviewing MSS management's calculation of rate year 2014 indexed expenses and compare
them to the calculated expenses for 2013, established in our prior report, and the calculated
changes to the indices.
• Reviewing MSS management's projection of other expenses including:
Workers' Compensation will be reviewed by determining if the base wages, established as
part of the prior review, were properly multiplied by the applicable premium rates from
MSS' insurance carrier.
c Disposal Expense for residential and solid waste tons transferred at MSS' transfer station
will be reviewed by evaluating MSS' projection for 2014 disposal expense and MSS's
HF&H Consultants, LLC 2 November 27, 2013
adjustments for the previous projections for Rate Years 2012 and 2013 based on historical
trends, management's plans and adjustment to the disposal rates;
o Commercial Mixed Waste Processing Expense for commercial tons processed at MSS'
processing facility will be reviewed by evaluating MSS' projection for 2014 commercial
mixed waste processing and MSS' adjustments for the previous projections for Rate Years
2012 and 2013 based on historical trends and management's plans. We will verify that
the processing rate per ton was calculated in accordance with the rate setting
methodology.
o Organics Processing Expense will be reviewed by evaluating MSS' projection for 2014
organics processing and MSS' adjustments for the previous projections for Rate Years
2012 and 2013 based on historical trends and management's plans. We will verify that
the processing rate per ton was calculated in accordance with the rate setting
methodology.
o The Transfer/Transport Adjustment for tons not affiliated with the Franchisors Group
transferred and transported through MSS' transfer station will be reviewed by evaluating
MSS' tonnage projection for 2014 and MSS' adjustments for the previous tonnage
projections for Rate Years 2012 and 2013 based on historical trends and management's
plans. We will verify that the Transfer/Transport Fee per ton was calculated in accordance
with the rate setting methodology.
o Fuel Expense will be reviewed by evaluating MSS' 2014 projection and the adjustments for
Rate Years 2012 and 2013. We will review MSS' calculations of the average price per
gallon for fuel and verify the use of the proper projected gallons.
o Depreciation/Lease Expense projections will be reviewed by evaluating the
reasonableness of MSS management's estimates for these expenses based on historical
trends and records and MSS management's plans. We will review MSS' adjustments to
previous year projections, if any.
o JPA Fees expense will be reviewed by reviewing documentation from the JPA and MSS
projections.
o The costs related to the Commercial Food to Energy (F2E) program will be reviewed by
comparing MSS' prior year projections to actual costs and revised projections.
• Reviewing MSS' calculations of the following Pass-through Expenses and Other Revenue:
c Interest Expense will be reviewed based on MSS' actual interest from its loan amortization
schedules for actual and projected capital expenditures.
Franchise Fees will be reviewed based on each agency's appropriate rate and the
forecasted values.
Other Agency Fees will be reviewed based on fees established by each agency and
forecasted values.
c Other Revenues will be reviewed based on revenues received by MSS from related and
third parties from the use of assets and services of employees where the costs are paid by
the rates from the Franchisors Group ratepayers.
HF&H Consultants, LLC 3 November 27, 2013
• Reviewing the MSS' calculation of the increase or decrease to the reserve for future diversion
programs is in accordance with the procedures developed in 2012.
• Reviewing the appropriateness of MSS management's allocation of revenues and expenses
among the Franchisors and the other service areas, is in accordance with the procedures
developed in 2012.
• Meeting once with MSS management to review our adjustments to their calculated and
projected revenues and expenses and their allocation among the Franchisors. We will obtain
management's comments, review any additional material, and amend our adjustments, if
necessary.
• Compiling rates currently in effect in other municipalities in Marin County, as well as
neighboring jurisdictions in other counties.
• Preparing a written report that documents our findings and recommendations.
L! rn itaticmn4 -0-7,
Our review was substantially different in scope than an examination in accordance with Generally
Accepted Auditing Standards, the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an opinion. However, Chiao
Smith McMullin + McGuire, An Accountancy Corporation, issued an unqualified opinion of MSS' 2012
financial statements. The unqualified opinion denotes that the financial statements of MSS were
presented fairly in all material respects.
There are related party transactions included in MSS' 2014 projections at rates that have been discussed
and allowed by the Franchisors in the Rate Methodology Amendment as well as other methodology
changes and therefore we did not review the underlying basis for such rates and changes. Examples of
such rates are: 1) the transfer/transport rate for materials collected outside the Franchisors' area and
credited back to the Franchisors; and, 2) the per -ton Zamora composting rate.
Our conclusions are based in part on the review of MSS' projections of its financial results of operations.
Actual results of operations will usually differ from projections because events and circumstances
frequently do not occur as expected and the difference may be significant.
HF&H Consultants, LLC 4 November 2.7, 2013
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SECTION III. MSS' PROJECTION METHODOLOGY (INDEX YEAR)
Current Operations
In projecting 2014 costs, MSS included the direct costs for the Franchisors' Group garbage collection, the
transfer station and recycling collection. Shop costs and administrative costs are allocated among the
agencies served by MSS using truck route hours and an average of projected revenue, annual customer
counts and department's percentage of wages, respectively. Management salaries are allocated to
departments (MSS, MRRA, MRRC, etc.) based upon actual time spent by management related to that
department.
Expenses
MSS projected its 2014 expenses (less non -allowable costs, such as donations, fines for penalties, certain
attorney's fees, goodwill, etc.) for each expense category by:
• Basing wage and salary expenses on 2013 expenses increased by the percentage change in the
average annual San Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (Urban
Wage Earners; 1982-1984=100) for June 2012 and 2013;
• Basing benefits expense, excluding Workers' Compensation expense, on the projected 2013
benefits expense increased by the percentage change in the annual average Employment Cost
Index — Benefits (Private Industry Workers; 1982-1984=100) for June 2012 and 2013;
• Calculating Worker's Compensation expense by multiplying the 2013 wage projection (Base
Year Revenue Requirement) by the applicable premium rates from the Contractor's insurance
carrier for 2014;
• Forecasting projected 2014 disposal expense using projected tons multiplied by the applicable
disposal/processing rate for 2014, plus adjustments for 2012 actual disposal expenses, and
estimated 2013 disposal expenses calculated based on actual 2012 results and year-to-date
2013 results;
• Forecasting projected 2014 fuel and oil expense as follows:
o Projected Year (2014) Fuel Expense - gallons established in the most recent detail year
review (2013) at the average price per gallon based on actual year to date purchases; plus,
c Current Year (2013) Expense Adjustment - gallons established in the most recent detail
year review (2013) at the average price per gallon based on actual year to date purchases
less the 2013 fuel expense established during the previous review; plus,
Revised Prior Year (2012) Expense Adjustment - projected gallons for 2012 at the average
price per gallon for 2012 less the expense established during the previous review for 2012.
• Forecasting projected 2014 equipment and vehicle maintenance expense was based on the
projected maintenance expense for 2013 increased by the percentage change in the annual
average Motor Vehicle Related Index (All Urban Consumers, U.S. City Average; 1982-1984=100)
for June 2012 and 2013;
HF&H Consultants, LLC
5
November 27, 2013
• Forecasting projected 2014 depreciation and lease expense based on MSS's actual depreciation
expense, plus projected depreciation on anticipated purchases in the Rate Year (allocation of
depreciation of trucks to the Franchisors Group and other operations was based on truck usage);
• Forecasting projected 2014 JPA Fees based on tons collected for the Franchisors' Group by MSS
for the period determined and rate established by the JPA;
• Forecasting projected 2014 other operating / general and administrative expense based on
projected 2013 expense increased by the percentage change in the annual average San
Francisco -Oakland -San Jose Metropolitan Area Consumer Price Index (All Urban Wage Earners;
1982-1984=100) fortune 2012 and 2013; and,
• Forecasting projected 2014 interest expense based on MSS's actual interest from its loan
amortization schedules for actual and projected capital adjusting 2014 for any projected asset
purchases from the prior rate year which were not purchased in projected time period.
Route Revenues
In order to mitigate significant differences in the forecasted and actual revenues received, a three year
trend in subscription levels is factored into the necessary rate adjustment. Actual revenue received
through June 2013 and projections for the remainder of the year were multiplied by the average
percentage surplus or shortfall rate revenue for the three most recently completed rate years. MSS
calculated the three year average achievement percentage of 98.02%, meaning actual revenue received
has averaged 98.02% of what was projected over the past three years.
In 2012, MSS contracted with R. J. Proto Consulting Group, Inc. (Proto) to assess MSS's collection
operation and inform management of improvements and changes necessary for the company's success.
MSS management reviewed the results of the report and has begun filling the seven personnel additions
recommended by Proto. The personnel additions include:
• Two Dispatchers;
• Two Route Supervisors;
• One Route Audit/Routing Manager;
• One Franchise Contract Manager; and,
• One Accounting Manager
The personnel additions are expected to allow collection operations and general management to
operate more effectively, resulting in planned route reductions over the next few years. MSS
management has estimated a total of five routes will be eliminated. During the prior detailed cost
review, it was determined that the net costs of the operations improvement plan over the next three-
year period amounted to $1.2 million, ranging from $800,000 in 2013 to $25,000 in 2015. Because the
costs differ significantly over the three-year period, it was agreed that the costs would be averaged;
therefore, $397,000 was included in MSS' 2013 compensation and will continue through 2015.
During the prior detailed cost review, it was determined that the program costs for the commercial food
waste collection program in conjunction with Central Marin Sanitation Agency (CMSA) will differ
HF&H Consultants, LLC 6 November 27, 2013
significantly over the next three years due to the projected rate of customer utilizing the new program
and subsequent rate applications will be adjusted largely using indices and not a detailed review of the
nets costs of the program. Therefore, it was agreed to average the costs equally over a three year
period, beginning in 2013. $252,000 was included in the 2013 rate setting process and will continue until
the next detailed cost review for the 2016 rates.
MSS calculated its 2014 profit by applying the agreed-upon 90.5% pre-tax operating ratio to its 2014
total projected expenses that are eligible for profit.
MSS calculated the 2014 Rate Adjustment to be 8.98%. The Rate Adjustment Factor equals the Total
Contractor's Revenue Requirement for the coming Rate Year divided by the Gross Rate Revenues. Gross
Rate Revenues mean the statements of charges for services rendered by Contractor, to owners or
occupants of property, including residential and commercial premises, for the collection of materials
pursuant to the Agreement, net of a reasonable allowance for uncollectible accounts, and adjusted for
the calculated three year revenue experience.
HF&H Consultants, LLC 7 November 27, 2013
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SECTION IV. PROPOSED ADJUSTMENTS
This section provides a summary of the HF&H recommended adjusted revenue requirement. HF&H's
recommended projections for MSS' operations are shown in Table 5 below and our recommended
adjustments to MSS' projections are discussed in more detail following the table.
Table 5: Summary of Adjustments
Expenses: Current MSS Operations
1 Wages
2 Benefits
Disposal Fees
4 Fuel &Oil
5 Maintenance Expense
6 Depreciation/Leases
7 Other Operating/G&A
8 Total Operating Expenses
9 Operating Profit
las Interest Expense
: _ Total Expenses for Current Operations
Revenue Requirement for Current Services
Proiected Revenue (at current rates)
Route Revenues
Less: Franchise Fees
Less: Street Sweeping
Less: Refuse Vehicle Impact Fee
Add: Non -Regulated Revenues
Net Revenues (at current rates)
Total Surplus/ (Deficit) (Line 18 - Line 12)
Rate Impact (-Line 19 _ Line 18)
MSS Recommended HF&H Adjusted
Application Adjustments Application
$ 7,124,527 $
- $
7,124,527
3,775,406
(133,441)
3,641,965
4,048,572
(561,167)
3,487,405
1,056,719
(80,891)
975,828
1,405,170
-
1,405,170
1,711,455
-
1,711,455
3,110,793
60,505
3,171,298
22,232,642
(714,994)
21,517,648
2,333,812 (75,055) 2,258,757
318,375 - 318,375
24,884,829 (790,049) 24,094,780
$ 24,884,829 $ (790,049) $ 24,094,780
26,409,276
26,409,276
(2,607,328)
- (2,607,328)
(72,000)
- (72,000)
(896,302)
(896,302)
22,833,646 - 22,833,646
$ (2,051,183) $ 790,049 $ (1,261,134)
8.98% 5.52
HF&H Consultants, LLC 8 November 27, 2013
Wages
HF&H reviewed and does not recommend any adjustments to MSS' projected 2014 Wages expense
(Table 5, Line 1).
Benefits
HF&H recommends reducing benefits by a net of $133,441 due to the following:
• Reduce benefits, other than Workers' Compensation, as the increase in such benefits, was
limited to the annual average increase in the Employment Cost Index of 2.08%. MSS calculated
several of the benefit items using rates other than the rate prescribed by the agreed-upon Rate
Index methodology; and,
• Increase Workers' Compensation by $9,329 due to allocation changes not reflected by MSS in its
application.
Disposal Fees
HF&H recommends reducing MSS' projected disposal fees by $561,167 (Table 5, Line 3). In the 2013
rate setting process, MSS represented the commercial loads were highly contaminated therefore;
yielding very little material that could actually be recycled. Rates were set based on the lower tipping
fee at the transfer station. In 2013, MSS reviewed the composition of the commercial solid waste
tonnage and began redirecting an increased amount to MRRC. MRRC's processing fee is approximately
$30 per ton higher than the transfer station tip fee. HF&H is proposing adjustments to reflect "as if" the
material was delivered to the transfer station. The adjustment includes a decrease of $276,846 for 2013
and $284,321 for 2014.
We recommend MSS determine the available diversion from the commercial material and present to
the Franchisors MRRC as an alternative processing facility, with the an estimated additional cost per
diverted ton.
Fuel & Oil
HF&H recommends decreasing MSS' projected Fuel & Oil costs by $80,891 (Table 5, Line 4) due an
updated projected average per gallon fuel price. MSS projected the 2014 fuel cost based on the actual
year to date average per gallon for purchases through August 8, 2013 at $3.836, while the average per
gallon fuel price based on the trend for the most recent three months of purchases in 2013 was $3.772,
resulting in an overstatement of 2014 fuel cost of $23,922. MSS adjusted 2013 fuel expense using the
actual average per gallon price for the 2013 year to date purchases at $3.932, while the average per
gallon price using a projections through August 8, 2013 of $3.732, resulting in an overstatement of the
fuel cost adjustment for 2013 of $56,969.
Maintenance Expense
HF&H reviewed and does not recommend any adjustments to MSS' projected 2014 Maintenance
Expense (Table 5, Line 5).
HF&H Consultants, LLC 9 November 27, 2013
Depreciation/ Leases
HF&H reviewed and does not recommend any adjustments to MSS' projected 2014 Depreciation/Leases
expense (Table 5, Line 6).
Other Operating/G&A
HF&H recommends increasing MSS' projected Other Operating / G&A by $60,505 to reflect the
consulting fees associated with the development of a new sustainable rate structure. The Franchisors'
Group understands the importance of community acceptance of any new rate structure. The
consultant's primary task will be assisting with the development of and facilitating focus groups
consisting of members of the community. (Table 5, Line 7).
Operating Profit
HF&H recommends reducing MSS' projected operating profit by $75,055 (Table 5, Line 9), resulting from
the decreases in operating costs described above.
Interest Expense
Due to offsetting adjustments in MSS's calculations, no adjustment is recommended for interest
expense (Table 5, Line 10).
djuslb c int i,o Pt' j ed al 0"wrent Rates
HF&H reviewed and does not recommend any adjustments to MSS' projected revenue at current rates
(Table 5, Line 18).
ACHL. aRecycic w a y ?w YI-Pleserve
During 2012, the Franchisors and MSS agreed to share the net revenues from the processing of
recyclable materials collected from the Franchisors' customers, beginning with actual results in calendar
year 2011. It was agreed that the net revenues would be contributed to a reserve to fund one-time
costs of future diversion programs. As reflected in Table 6, the reserve amount decreased $85,154 to
$147,553. The decrease in the reserve is primarily due to a decrease in commodity pricing that
decreased the average recycling revenue per ton for 2012 by $18.13 per ton ($182.80 to $164.67). The
processing costs have increased due to a combination of inflation and fixed costs being spread over
fewer tons processed. Additionally, the 2013 reserve was updated to reflect the final approved
operating ratio of 95% and the exclusion of HHW grant revenue (a reduction of $34,699).
Table 6: Summary of Net Recyclable Revenue Reserve
Rate Year
Based on
Financial Year
Net Addition
(Reduction)
to Reserve
2013
2011
$ 232,707
2014
2012
$ (85,154)
Reserve Balance
$ 147,553
HF&H Consultants, LLC 10 November 27, 2013
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SECTION V. RATE ADJUSTMENT
Rate Adjustment
Based on a revenue requirement of $24,094,780 (Table 5, Line 12) and projected net revenues of
$22,833,646 (Table 5, Line 18) for the calendar year 2013, resulting from our recommended adjustments
to MSS' application, a 5.52% rate adjustment has been calculated, effective January 1, 2013.
This rate increase of 5.52%, results primarily from:
• An overall net increase of 5.77% in operating costs for current services, primarily from:
o Disposal Adjustment - 2.16% ($474,022) is the result of two primary factors:
1. Current Year Projected Disposal Expense - An increase in the per ton disposal/processing fees
(by the change in the applicable consumer price index), partially offset by the reduction in
residential tonnage collected; and,
2. Prior Years' Disposal Reconciliation Positive Adjustments - The disposal expense reconciliation
adjustment in accordance with the approved rate setting methodology. The adjustment reflects
the correction of previous projections for both rates and tonnage based on data and expenses
received at the time of the analysis.
Table 7: D
Current Year Projected Disposal Expense (1)
nse Variance
Variance
$ 3,614,748 $ 3,631,865 $ 17,117
Prior Years' Disposal Reconcilation Adjustment (2) $ (601,365
456,905
Net Disposal Expense in Revenue Requirement $ 3,013,383 $ 3,487,405 $ 474,022
o Other Operating Costs — 2.26% is the result of the following factors:
1. An increase in the JPA fees due to a per ton rate increase from the JPA( $88,000);
2. An increase in depreciation as fully depreciated assets are replaced ($85,000);
3. Focus group facilitation fees as part of the current rate study ($60,000); and
4. CPI increases in the base expenses in accordance with the approved rate setting
methodology.
Other Expenses — 1.1% is the result of minor adjustments to the other expenses and
revenues accounts.
The following table shows the components of the rate adjustment:
HF&H Consultants, LLC 11 November 27, 2013
Table 8: Rate Adjustment Components
2014 Component Percentages
Wages 0.86%
Benefits (including workers comp) 0.90%
Fuel & Oil -0.41%
Disposal 2.16%
Other Operating Costs* 2.26%
Subtotal Operations 5.77%
Revenue Surplus net of Franchise Fees -0.25%
Total Rate Adjustment 5.52%
Attachment 3 shows the results of HF&H's survey of solid waste rates as of August 2013 for jurisdictions
located throughout the Bay Area. For the purpose of comparing the Franchisors' rates to other
jurisdictions, we have applied the recommended 5.52% rate increase to the current Franchisors rates.
The Franchisors' residential rates for a 32 -gallon container (the most frequent residential service level)
range from $27.26 (LGVSD) to $34.26 (Larkspur). The survey shows the Franchisors' average residential
rate for 32 -gallon service ($31.10) is in the low range compared to the other Marin County jurisdictions.
Of the ten Marin County jurisdictions, eight of the jurisdictions' 32 -gallon container rates are higher than
the Franchisors' average and two jurisdictions are lower. Attachment 4 graphically compares the
Franchisors' residential rates for a 32 -gallon container to one another as well as to the average of Marin
County rates for similar service.
The Franchisors' commercial rates for a 3 cubic yard bin serviced one time per week range from $382.99
(Ross) to $436.86 (Larkspur). The average rate for the Franchisors is $407.90, which is in the lower range
compared to the other five Marin County jurisdictions that have this level of service. Three jurisdictions
have higher rates and two jurisdictions have lower rates. Attachment 5 compares the Franchisors'
commercial rates for a 3 cubic yard bin serviced one time per week to the average Marin County rate
and all other jurisdictions' average rate for similar service levels.
While the recommended rates compare favorably to those surveyed, we caution the Franchisors that
this survey is presented as an indication of the reasonableness of the resulting rates. They should not
draw conclusions from this information because rate comparisons are intrinsically difficult and often
misleading. This difficulty results from differences in issues such as:
1. The services provided;
2. The terrain in which the service is performed;
3. Disposal costs;
4. Rate structures; and,
5. Governmental fees (e.g., franchise fees, vehicle impact fees, etc).
HF&H Consultants, LLC 12 November 27, 2013
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' 1 cu yd ccotainers not available. Rates reflected here are for 1.5 cu. yds.
I City has wet/dry comrrerc ?.!collection rates are for wet commercial materials
31-arge>t r, certlal car is 45 gallon
SmaGeat C-rra,cal 6'r s 2 yd.
sLargestcc-rercial bf yarcs.
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'Rate fc, -, 2, S E 30 ga,lor ca, Feu cf &I aro 90 goon cans.
° Bert. Vs D -,tr,,t S pay, a f:r sharg - ;cen--arates.
' OLSD'd dst-'.ct doesn't c�e.vlre recyc'.ing services to residents. Recycling rates are included in rate for Ll & 1-2.
Bay Area Rate Survey
Res. Single -Family
Commercial
IYD Bin
1YD Bin
3YD Bin
3YD Bin
Jurisdiction
County
30-35Gal.
60-64Gal.
90-96Gal.
1x/week
3x/week
lx/week
3x/week
City of AlamedaAlameda_
$
$
$ 80.332
$ 133.33
$ 407.97
$ 399.99
$ 1,223.93
X1,420.56
City of Albany_ _ _
Alameda_
_35.00
$ 39.61
_57.51
$ 68.46
$ X97.30
$ 157.84
$ 473.52
$ 473.52
$
$ 29.62
$ 59.21
$ 88.78
$ 143.42
$ 404.11
$ 415.12
$ 1,178.96
_
City of Berkeley (District 1& 2)
Alameda
-
Citeof Berkeley (District 3)s
Alameda
$ 31.14
$62.25
$ 93.36
$ 143.42
$ 404.11
$ 415.12
$ 9178.96
Citreof Dublin
-
Alameda-
$ 20.31
$ 37.31
$ 54.30
$ 98.54
$ 344.66
$ 295.62
$ 935.90
_ _ . _ _
City of Emeryville
Alameda_
$
$- 34.86
$
$ 103.82
$ 311.46
$ 311.46
$ _ 934.38
- - - -
City of Fremont
Alameda_
_17.44
$
$
_52.30
$ _45.27
$ 80.45
$ 231.41
$ 180.84
$ _ 532.57
_ - - -
City of Livermore _
Alameda_
_28.17
$ _27.51
_30.84
$ _53.34
$ 86.21
$ 116.72
$ 364.16
$ 350.16
$ _1,115.62
_ - -
CiteofN_wa_k _
Alameda _
$ 27.772
$ 49.09
$ 70.44
$ 112.31
$ 350.41
$ 297.13
$ _810.32
_ _ _ _
CitLof Oakland -
Alameda
$ 29.30
$ 63.89
$ 98.44
$ 137.54
$ 437.75
$ 360.62
$ 1_136.70
_ _ _ _
Cityof Piedmonts
-
Alameda
$ 51.88
$ 60.57
$ 70.97
$ 162.69
$ 458.61
NA
- _ NA
_ _
Cfty of Pierianon3
-
Alameda_
$--30.59
_ N/A
_ N/A
$ 145.51
$ 380.81
$ 415�54`$_1,121.44
- _ -
City of San Leandro
Alameda_
$ _25.22
$ _41.98
$ 58.72
$ 110.58
$ 334.30
$ 334.30
$ `1,002.90
City of Union City -
Alameda -
$ 42.29
$ 72.71
$ 103.10
$ 125.62
$ 346.96
$ 329.19
$ 897.15
Castro Valley Sanitary District _
Alameda -
$ 35.93
$ 62.40
$ 88.91
$ 254.62
$ 763.96
$ 677.64
$ y1,899.21
Oro Loma Sanitary District (LS)_ _
Alameda -
$ 20.04
M$ 35.53
$ 50.97
$ 101.05
$ 262.66
$ 269.16
$ 735599
Oro Loma Sanitary District (12)9
Alameda_
$
$ _30.93
$ _46.37
$ 101.05
$ 262.66
$ 269.16
$ _ 735.99
-
Oro Loma Sanit!a7ryDistrict (1-3) _
Alameda
_15.44
$ 22.51
$- 40.38
$ 58.29
$ 116.87
$ 303.77
$ 311.30
$ 872`01
Cityof Richmc�ncl
Contra Cgsta
$ 31.12
$ 59.37
$ 88.43
L 204.60
$ 517.16
$ 463.94
$ 1267.59
City of San Pablo - - _ _
Contra Costa
$ -29.02
$ _55.23
$ _82.28
$ 207.46
$ 527.33
$ 483.14
$ X1,327.12
City of EI Cerrito 's -
_
Contra Costa
$ -39.99
$ -79.99
- N/A
$ 241.27
$ 665.15
_ N/A
_ _N/A
- -
City of Hercules _ _ - -
Contra Costa
$ 32.76
$ 57.77
$ 83.52
$ 221.888
�$ 562.02
$ 513.50
$ 1,407.28
City of Pinole - - - - -
Contra Costa
$ 31.82
$ 56.58
$ 82.08
$ 237.58
$ 599.55
$ 546.86
$ 1_494.67
Unincorp:_West Contra Costa
Contra Costa
$ 31.01
$ 59.42
$ 88.50
$ 203.03
$ 514.88
$ 461.99
$ 1_264.41
Town of Fairfax,, ,.
Marin
$ 29.09'
$ 58.18
$ - 87.27
$ - 145.65
$ ;345.00.
$ 341.50
$._;- 893.85
RVSD-N (Oak Manor)
Mann
$ 3305
$ 6607
$ 9903
$ 177.26_$
531.85
$ 531.85
$ 1,595.55
_
�:
RVS_D-N (Sleepy Hollow) .... , _
Marin
_ ^=
$ 34.50
-31.95
$ 68.96
X63.94
$ .103..37
$ 177.26
$ 531.85
_$ 531.8s
- -
$ 1,595.55
- -
Town of San Ansetmo °
Mann . '
$
$
$ 95.92
N/A
N/A
$ 524.29
$_1,572,95
City of BelvederesMann
=.
$ 38.91
$ 61.60
$89.33
_$192 56
$531.92
_ _N/A
_ _ N/A
City of Novato_ "
Mann
$ 18.22
$ 36.43
$ 54.66
_ _N/A
_ �N/A.
$ 237 45
L 589:18
_..
City of Sausalito a
Mann tv
,.
$ 36.90
$ 73.80
$ 110.70
$ .145.91
$ A37.73
N/A
N/A
_ _
Town of Tiburon'_ _
_
Marin_
_
$ .36.95
_ _
_$ ..67:27
^62,48'
_ _
_$ _97.08
_
$ 175.79
- _
_$ 479.80
_ _
- N/A
_ _
_ -N/A
_ _
Town of Corte Madera'
Marin
$'. 31.16
$
$ 93.80
$- 145.73
$ .'393.23
r N/A-
�N/A
`N/A
_ _
City of Mill Valleys- -
_
Marin -
$ 38.66
$ 64.55.'
$ 90.40
$_ 171.25
$ 460.96
_ N/A
- -
Cityof5an_Rafael -
Marin -
$ 31.19
$ 62.39
$ 93.58
$ 201.33
$ 615.56
$-38_5.29
$- 1_093.6
-0
- - -
Las Gallinas- County
Marin_ -
$ -27.26
$ _54.51
$ _81.77
$ 195.18
$ 586.07
$ 394.94
$ _1,102.32
- - - _
City of Larkspur- - - _-
- Marin- _
$ -34.26
-
$ 68.54
- -
$ 102.80
- -
$ 217.53
- -
$ 652.37
- -
$ 436.86
- -
$ 1,145.47
- - -
Town of Ross
Marin
_ _ -
$ 29.82
_ _
$ 59.65
- _ _
$ 89.47
_ _ _
N/A
_ _
N/A
_ - -
$ 382.99
- _ _
$ 1,148.82
_ - - _
_ _ _ - - - - -
County(RVSD-S) _
Marin _
$ 32.32
$ 67.22
$ 104.88
$ 272.68
$ 691.31
$ 421.70
$ 1,107_36
_ _ -
County- Marin Franchisors' Group
Marin _
$ 31.72
$ 65.99
$ 10_2.96
$ 211.67
$ 635.01
$ 425.62
$ 1_111.39
Cityof Campbell'_ v
Santa Clara
$ _23.50
$ -47.00
$ 70_51
`66`97
$ 117.66
$ 356.31
$ 235.31
$ 712.63
City of Cupertino'
Santa Clara
$ 22.32
$ -44.64
$
$ 130.19
$ 390.59
$ 208.31
$ 624.92
- -
Cityof Los Altos _ -
Santa Clara
$ -29.20
$ _53.40
$ -87.60
$ 117.50
$ 352.52
$ 352.52
$ -1,057.57
City of Monte Sereno' -
Santa Clara
$ 27.67
$ 55.35
$ 83.02
$ 163.21
$ 494.35
$ 326.42
$ 988.70
City of Mountain View
_ _ _
Santa Clara
-
$ 22.60
_ _
$ 45.20
_ _
$ 67.80
_ _
$ 99.20
_ _
$ 337.10
_ _
$ 297.25
_ _
$ 931.90
_
_
City of Palo Alto _
Santa Clrra
$ 31.64
$ 67.84_
L101.76
$ 170.04
$ 523.20
$ 416.38
$ iL322.17
City of San Jose' _
Santa Clara
$ -29.95
$ _59.90
$ -89.85
$ 152.42
$ 436.46
$ 212.85
$ _ 608.80
- - -
City of5anta_Clara _ - _
Santa Clara
$ -24.31
$ 35.73
-40.19
$ 47.15
147.47
$ -73.53
$ 212.75
$ 205.94
$ _ 584.50
-
City of Sunnyvale
Santa Clara
$ 32.91
$
$
$ 131.85
$ 395.53
$ 330.88
$ 992.61
1 _
Citvcf5aratoga' _ - - -
SantaClara
$ 24.71
$ _
$ 74.14
$ 162.50
$ 49-42
$ 325.00
$ _984.84
' i r .. Apes bills - -
Santa Clara
$_ F, -, Al
$_
11 2.-
4 $_ 93.18
$_ 196-23
$_ 145.81
$_ _340.93
_
To'N cs C-atcs
Santa Clara
$ .31
$ 45.62
$ 68.44
$ 132.71
$ 402.G2
$ 26 .42
$ 804.03
Vann r - hlcors' Average
$ 1'..10
$ 63.05
$ 95.91
$ 219.68
$ 636.06
$ 4.7.90
$ 1,118.16
Marr C-.unty Average
$ 32.94
62.33
$ 9216
�$ 166.43
$ 464.03
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Esther Beirne
From:
Sent: Monday, December 16, 2013 1:49 PM
To: Esther Beirne
Subject: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael
City Council members for 12//16/13
Dear City Council:
I am ill with a virus and cannot attend the city council meeting tonight but, if need prevails, I can
provide you with my MSS bill and a comparable one from the Novato Disposal Service, should you
request same.
I am seeking denial of the Marin Sanitary Service rate increase you will be voting on tonight, (despite
the fact that City Council routinely votes in favor of the MSS requests and despite the fact that some
of us have requested you to vote for denial in the past), for the following reasons:
1. As a resident of San Rafael, I am billed over 300/ ear for their services. The City of Novato (a
comparable community to San Rafael) charges only $200/year for more services for an identical
clientele. San Rafael ratepayers receive far fewer benefits than other Bay Area communities and pay
far higher rates for fewer benefits.
2. MSS offers less services and less cans than other communities for 33% more fees. a) Novato
Disposal Service provides larger cans, including multiple green cans for those that require them and
at lesser rates than MSS. b) Novato provides FOUR annual curbside pickups for furniture,
appliances, mattresses, or up to seven extra bags for NO EXTRA FEE. In San Rafael's higher
density neighborhoods, such as Gerstle Park, for example, residents speak of nighttime "deposits" of
mattresses and appliances on neighborhood streets because there are no free pickup services by
MSS.
3. c) Novato Disposal offers all neighborhoods one week/year where they can put out at the curb
appliances or large bulky items at NO EXTRA fee!
4. d) MSS has many plastics they still "can't find a market for", yet Novato Disposal takes all manner
of plastics, including rigid plastics (such as plastic trays, tubs and furniture).
At most, I only use the pickup services one to two times per month. I, and many others, practice
recycling, sustainable purchasing and conservation. Four plus pickups a month only teach people to
not consider the packaging their food and products come in and to buy more. Where is my reduced
rate for less MSS pickups/services?
Sometimes I don't set out my green can for several weeks, the recycling cans maybe only every two
or three weeks or more. There seems to be no consideration for customers with less waste for rate-
paying purposes.
4. Lastly, in these last few years of the economic woes, how many businesses have given ANNUAL
wage increases of any kind, much less as much as 5% increases? How can these rates be
justified? Even the newer compost venture MSS has embarked upon sells their product and gives
us no rate reductions for such revenue generated.
As the notice for this agenda item is posted in the papers only, hours before you take a vote, there
are alot of ratepayers that are unaware of this annual rate -hiking event until AFTER the vote. As an
involved citizen of San Rafael, I know many, many homeowners who are in agreement with me that
these rates are too high, should not be increased, but definitely should be decreased!
Some of you Council members may have no problem with paying $300+/year for these
services. However, I ask you to consider the many others who do have a problem with these rates.
We are called single -income, fixed income, or just plain low-income ratepayers. I fit into at least one
of the above catagories. Please remember that these groups also are the people who consider
voting/not voting for you when you run for office.
To conclude, I ask you to consider the implications of your vote and to remember "the little guy" who
is forced to pay rates that are at least 33% higher than our sister city only ten miles away from
us. Perhaps we need some competitive bids to make MSS
provide more for less. (Novato Disposal at www.unicycler.com, fyi.)
Sincerely,
Gail Grasso
Marin Independentlonrnal
150 Alameda del Prado
PO Box 6150
Novato, California 94948-1535
(415)382-7335
legals@marinij.com
SAN RAFAEL,CITY OF
PO BOX 151560/CITY CLERK, DEPT OF PUBLIC
WORKS, 1400 FIFTH AVE
SAN RAFAEL CA 94915-1560
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Marin
FILE NO. 0005045647
I am a citizen of the United States and a resident of the County
aforesaid: I am over the age of eighteen years, and not a party to
or interested in the above matter. I am the principal clerk of the
printer of the MARIN INDEPENDENT JOURNAL, a newspaper of
general circulation, printed and published daily in the County of
Marin, and which newspaper has been adjudged a newspaper of
general circulation by the Superior Court of the County of Marin,
State of California, under date of FEBRUARY 7, 1955, CASE
NUMBER 25566; that the notice, of which the annexed is a printed
copy (set in type not smaller than nonpareil), has been published in
each regular and entire issue of said newspaper and not in any
supplement thereof on the following dates, to -wit:
12/6/2013, 12/9/2013
I certify (or declare) under the penalty of perjury that the foregoing
is true and correct.
Dated this 9th day of December, 2013.
Signature
PROOF OF PUBLICATION
Legal No. 0005045647
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 Serv-
ice for a rate increase for refuse collection and
recycling services and adoption of a Resolution
amending the agreement setting maximum
rates for the year 2014.
DATE/TIME/PLACE:
Monday. December 16.2013, at 7:00 p.m.
City Hall Council Chambers.
1400 Fifth Avenue, San Rafael
WHAT WILL HAPPEN:
Mnity comment on the proposed Resolution.
City Council will consider all public testi-
mony and will then decide whether to approve
the Resolution.
IF YOU CANNOT ATTEND:
You may send a letter to Esther C. Beirne. City
Clerk. City of San Rafael, P.O. Box 151560, San
Rafael. CA 94915.1560. You may also hand de-
liver a letter to the City Clerk prior to the
meeting.
FOR MORE INFORMATION:
You may contact Cory Bytof, Sustainability and
Volunteer Program Coordinator. at (415) 4115-
3407. Office hours are Monday through Friday.
8:30 a.m. to 5:00 p.m.
SAN RAFAEL CITY COUNCIL
/s/ ESTHER C. BEIRNE
ESTHER C. BEIRNE. City Clerk
No.1488 December 6.2013. December 9.2013
CITY OF SAN RAFAEL
NOTICE OF PUBLIC HEARING
The City Council of the City of San Rafael will hold a public hearing:
PURPOSE: Public Hearing: To consider a request by Marin Sanitary
Service for a rate increase for refuse collection and recycling
services and adoption of a Resolution amending the agreement
setting maximum rates for the year 2014.
DATE/TIME/PLACE: Monday, December 16, 2013, at 7:00 p.m.
City Hall Council Chambers, 1400 Fifth Avenue, San Rafael
WHAT WILL HAPPEN: You may comment on the proposed Resolution. The
City Council will consider all public testimony and will
then decide whether to approve the Resolution.
IF YOU CANNOT ATTEND: You may send a letter to Esther C. Beirne, City Clerk,
City of San Rafael, P.O. Box 151560, San Rafael, CA
94915-1560. You may also hand deliver a letter to the
City Clerk prior to the meeting.
FOR MORE INFORMATION: You may contact Cory Bytof, Sustainability and Volunteer
Program Coordinator, at (415) 485-3407. Office hours are
Monday through Friday, 8:30 a.m. to 5:00 p.m.
SAN RAFAEL CITY COUNCIL
/s/ ESTHER C. BEIRNE
ESTHER C. BEIRNE, City Clerk
(Please publish in the Marin Independent Journal on Friday, December 6, 2013 and
Monday, December 9, 2013)
CITY OF SAN RAFAEL
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY.
SRRA / SRCC AGENDA ITEM NO. 5. b
DATE OF MEETING: 12/16/2013
FROM: Cory Bytof
DEPARTMENT: for City Manager's Office
DATE: 12/9/2013
TITLE OF DOCUMENT:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ESTABLISHING MAXIMUM
RATES COLLECTED BY MARIN SANITARY SERVICE FOR REFUSE AND RECYCLABLE MATERIAL
COLLECTION ANP DISPOSAL SERVICES, TO BE EFFECTIVE JANUARY 1, 2014
rnt Head (signature)
(LOWER HALF OF FORM FOR APPROVALS ONLY)
APPROVED AS COUNCIL / AGENCY
AGENDA ITEM:
City Manager (signature)
NOT APPROVED
REMARKS:
APPROVED AS TO FORM:
City Attorney (signature)
Esther Beirne
From:
Sent: Monday, December 16, 2013 1:49 PM
To: Esther Beirne
Subject: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael
City Council members for 12//16/13
Dear City Council:
I am ill with a virus and cannot attend the city council meeting tonight but, if need prevails, I can
provide you with my MSS bill and a comparable one from the Novato Disposal Service, should you
request same.
I am seeking denial of the Marin Sanitary Service rate increase you will be voting on tonight, (despite
the fact that City Council routinely votes in favor of the MSS requests and despite the fact that some
of us have requested you to vote for denial in the past), for the following reasons:
1. As a resident of San Rafael, I am billed over300/ ear for their services. The City of Novato (a
comparable community to San Rafael) charges only $200/year for more services for an identical
clientele. San Rafael ratepayers receive far fewer benefits than other Bay Area communities and pay
far higher rates for fewer benefits.
2. MSS offers less services and less cans than other communities for 33% more fees. a) Novato
Disposal Service provides larger cans, including multiple green cans for those that require them and
at lesser rates than MSS. b) Novato provides FOUR annual curbside pickups for furniture,
appliances, mattresses, or up to seven extra bags for NO EXTRA FEE. In San Rafael's higher
density neighborhoods, such as Gerstle Park, for example, residents speak of nighttime "deposits" of
mattresses and appliances on neighborhood streets because there are no free pickup services by
MSS.
3. c) Novato Disposal offers all neighborhoods one week/year where they can put out at the curb
appliances or large bulky items at NO EXTRA fee!
4. d) MSS has many plastics they still "can't find a market for", yet Novato Disposal takes all manner
of plastics, including rigid plastics (such as plastic trays, tubs and furniture).
At most, I only use the pickup services one to two times per month. I, and many others, practice
recycling, sustainable purchasing and conservation. Four plus pickups a month only teach people to
not consider the packaging their food and products come in and to buy more. Where is my reduced
rate for less MSS pickups/services?
Sometimes I don't set out my green can for several weeks, the recycling cans maybe only every two
or three weeks or more. There seems to be no consideration for customers with less waste for rate-
paying purposes.
4. Lastly, in these last few years of the economic woes, how many businesses have given ANNUAL
wage increases of any kind, much less as much as 5% increases? How can these rates be
justified? Even the newer compost venture MSS has embarked upon sells their product and gives
us no rate reductions for such revenue generated.
As the notice for this agenda item is posted in the papers only hours before you take a vote, there
are alot of ratepayers that are unaware of this annual rate -hiking event until AFTER the vote. As an
involved citizen of San Rafael, I know many, many homeowners who are in agreement with me that
these rates are too high, should not be increased, but definitely should be decreased!
Some of you Council members may have no problem with paying $300+/year for these
services. However, I ask you to consider the many others who do have a problem with these rates.
We are called single -income, fixed income, or just plain low-income ratepayers. I fit into at least one
of the above catagories. Please remember that these groups also are the people who consider
voting/not voting for you when you run for office.
To conclude, I ask you to consider the implications of your vote and to remember "the little guy" who
is forced to pay rates that are at least 33% higher than our sister city only ten miles away from
us. Perhaps we need some competitive bids to make MSS
provide more for less. (Novato Disposal at www.unicycler.com, fyi.)
Sincerely,
Gail Grasso
'J16/13 Damon Connolly Law Mail - FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 12//16/13
FW: Marin Sanitary Service annual rate hikes (despite no increase in
services) --to San Rafael City Council members for 12//16/13
Esther Beirne <Esther.Beirne@cityofsanrafael.org> Mon, Dec 16, 2013 at 2:35 PM
To: Cory Bytof <Cory.Bytof@cityofsanrafael.org>
Cc: Nancy Mackle <Nancy.Mackle@cityofsanrafael.org>, Jim Schutz <Jim.Schutz@cityofsanrafael.org>, Lisa
Goldfien <Lisa.Goldfien@cityofsanrafael.org>, rob@epsteinlawyer.com
Please see below
From:
Sent: Monday, December 16, 2013 1:49 PM
To: Esther Beirne
Subject: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council
members for 12//16/13
Dear City Council:
I am ill with a virus and cannot attend the city council meeting tonight but, if need prevails, I can provide you with
my MSS bill and a comparable one from the Novato Disposal Service, should you request same.
I am seeking denial of the Marin Sanitary Service rate increase you will be voting on tonight, (despite the fact
that City Council routinely votes in favor of the MSS requests and despite the fact that some of us have requested
you to vote for denial in the past), for the following reasons:
1. As a resident of San Rafael, I am billed over 300/ ear for their services. The City of Novato (a comparable
community to San Rafael) charges only 200/ ear for more services for an identical clientele. San Rafael
ratepayers receive far fewer benefits than other Bay Area communities and pay far higher rates for fewer
benefits.
2. MSS offers less services and less cans than other co unifies for more fees • a) Novato Disposal
Service provides larger cans, including multiple green cans for those that require them and at lesser rates than
MSS. b) Novato provides FOUR annual curbside pickups for furniture; appliances, mattresses, or up to seven
extra bags for NO EXTRA FEE. In San Rafael's higher density neighborhoods, such as Gerstle Park, for
example, residents speak of nighttime "deposits" of mattresses and appliances on neighborhood streets
because there are no free pickup services by MSS.
httos J/mai I .a ooq I e.com'mai I/u/0/?ui = 2&i k-- 85ab 123075&\i ew= pt&sear c h= i n box&th=142fd8d368370234 1/8
12/16/13 Damon Connolly Law Mail - FW: Marin Sanitary SeNce annual rate hikes (despite no increase in services) --to San Rafael City Council members for 12//16/13
3. c) Novato Disposal offers all neighborhoods one week/year where they can put out at the curb appliances
or large bulky items at NO EXTRA fee!
4. d) MSS has many plastics they still "can't find a market for', yet Novato Disposal takes all manner of
plastics, including rigid plastics (such as plastic trays, tubs and furniture).
At most, I only use the pickup services one to two times per month. I, and many others, practice recycling,
sustainable purchasing and conservation. Four plus pickups a month only teach people to not consider the
packaging their food and products come in and to buy more. Where is my reduced rate for less MSS
pickups/services?
Sometimes I don't set out my green can for several weeks, the recycling cans maybe only every two or three
weeks or more. There seems to be no consideration for customers with less waste for rate -paying purposes.
4. Lastly, in these last few years of the economic woes, how many businesses have given ANNUAL wage
increases of any kind, much less as much as 5% increases? How can these rates be justified? Even the newer
compost venture MSS has embarked upon sells their product and gives us no rate reductions for such revenue
generated.
As the notice for this agenda item is posted in the papers only hours before you take a vote, there are alot of
ratepayers that are unaware of this annual rate -hiking event until AFTER the vote. As an involved citizen of San
Rafael, I know many, many homeowners who are in agreement with me that these rates are too high, should not
be increased, but definitely should be decreased!
Some of you Council members may have no problem with paying $300+/year for these services. However, I ask
you to consider the many others who do have a problem with these rates. We are called single -income, fixed
income, or just plain low-income ratepayers. I fit into at least one of the above catagories. Please remember
that these groups also are the people who consider voting/not voting for you when you run for office.
To conclude, I ask you to consider the implications of your vote and to remember "the little guy" who is forced to
pay rates that are at least 33% higher than our sister city only ten miles away from us. Perhaps we need some
competitive bids to make MSS
provide more for less. (Novato Disposal at www.unicycler.com, fyi.)
Sincerely,
Gail Grasso
Reply -To:
To: Esther Beirne <
httos://mai I .q ooq le.corTVmai 1/u/0/?ui=2&i l� 85abl23075&view=pt&search= i nbo>(&th=142fd8d368370234
cl V, ' r
t
J
Mon, Dec 16, 2013 at 2:36 PM
2/8
12/16/13 Damon Connolly Law Mail - FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City Council members for 12//16/13
Your message was delivered to the recipient.
Sent via BlackBerry by AT&T
Cory Bytof <Cory. Mon, Dec 16, 2013 at 3:51 PM
To: Kate. Damon Connolly <
Cc: Jim Schutz<
Hello Damon and Kate,
See below for a comment on tonight's rate increase. I had one other inquiry from Matt Butler of the San
Rafael Yacht Harbor and he might come tonight to voice his opinion. I was able to explain the difference
between Novato's rates and San Rafael's to him and he seemed satisfied as to why and supportive of the
reasons, although he might still come to voice his concerns.
Here is some information that may help.
- Marin Sanitary Service is a union shop, and pays benefits, which apparently Unicyler does not pay
(Novato's service, which is a larger corporate entity)
The average cable bill costs approximately three times as much per year as MSS' services for
residential, whereas with curbside refuse and recycling service customers have 2-3 trucks coming to their
house weekly. Average cell phone bills are higher as well.
- MSS offers comparable services to most jurisdictions in the Bay Area, in some cases more, in some
cases less, but there are so many services it is hard to compare apples to apples. However, MSS is at the
forefront of ZW efforts and offers things like Food to Energy, which is not available in Novato and which
promises to get us much closer to ZW. MSS offers all sorts of services, including hazardous waste drop off,
and twice a year offers free drop off of a full cubic yard of debris for all their customers.
- No franchise fees, or JPA fees for Novato, and they own the landfill so no tipping fees that I know of
- Novato is an anomaly. Very few companies in the Bay Area have rates this low, and again, they have to
do with being exempt from benefits, fees, and being owned by large corporate entities that have
diversified revenue streams
- As you know and have heard Patty say rnany times, MSS now does take all manner of plastics, but the
markets are the markets, and sometimes there is no market. Plus, plastics "recycling" is a hard pill to
swallowwhen we know it only gets "upcycled" into one more use rather than recycled like aluminurn or
glass.
- MSS rates are lower than many other Marin jurisdictions, and rates are all overthe board. MSS is
comparable to other jurisdictions in the Bay Area
- MSS is a mom and pop, local company that supports the community and keeps the money in our local
economy
- We noticed the meeting 10 days ago and this year are bringing it to you prior to the rate year, as
opposed to in years past where we (almost always) had to set the rates retroactively.
httns Wrnail.000ale.corn/mail/u/0/?ui=2&ik=85ab123075&view=pt&search=inbox&th=142fd8d368370234 3/8
12/16/13 Damon Connolly Law Mail - FW: Marin Sanitary SeNce annual rate hikes (despite no increase in ser ices) --to San Rafael City Council members for 12//16/13
Please let me know if you have any questions before tonight. And Patty Garbarino will be there as always
to answer questions as well.
Thanks very much.
Cots Bytof
City of San Rafael
Volunteer & Sustainability Program Coordinator
(415) 485-3407
CityofSanRafael.org/green - Facebook
San RafaelVo lunteers.o rg - Facebook
From: Esther Beirne
Sent: Monday, December 16, 2013 2:36 PM
To: Cory Bytof
Cc: Nancy Mackle; Jim Schutz; Lisa Goldfien; Robert . Epstein (
Subject: FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City
Council members for 12//16/13
[Quoted text hidden]
Kate Colin < Kate. Coli Mon, Dec 16, 2013 at 4:31 PM
To: Cory Bytof< , Damon Connolly <
Cc: Jim Schutz<
Hi Cory - Thanks for the explanation. The original email from the resident went to all the Council so you may be
called upon to repeat this info in a public setting.
See you tonight.
Kate
-----Original Message -----
From: Cory Bytof
Sent: Mon 12/16/2013 3:51 PM
To: Kate Colin; Damon Connolly
Cc: Jim Schutz
Subject: FW: Marin Sanitary Service annual rate hikes (despite no increase in services) --to San Rafael City
Council members for 12/1/16/13
Hello Damon and Kate,
See below for a comment on tonight's rate increase. I had one other inquiry from Matt Butler of the Sari Rafael
Yacht Harbor and he might come tonight to voice his opinion. I was able to explain the difference between
Novato's rates and San Rafael's to him and he seemed satisfied as to why and supportive of the reasons,
although he might still come to voice his concerns.
httns //mail.acetaIe. Corn Mai I/U/0/?ui=2&ik=85ab123075&\iew=pt&search=inbox&th=142fd8d368370234 4/8