HomeMy WebLinkAboutMS MSS Rates 2015Agenda Item No: 5 • a
Meeting Date: December 15, 2014
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: CITY MANAGER
Prepared by: Cory Bytof
Sustainability & Volunteer Program
Coordinator
City Manager Approval ,'
116'
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, 2015
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, 2015.
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 as well as a methodology for setting
rates. 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. This Background section of the staff
report will illustrate the overall context for the rate setting process. In general, the context
includes 1) the franchise agreement with MSS, 2) environmental initiatives, goals and
regulations, 3) MSS's services and programs, and 4) an update on the rate structure analysis
performed this year.
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 California Public Resources Code and to collect a franchise
fee. The City of San Rafael has a franchise agreement with MSS for refuse, organic materials,
and recycling collection and 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
FOR CITY CLERK ONLY
File No.:
Council Meeting: V;2
i
Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
services to be provided by MSS, the rate setting methodology and the franchise fee paid to the
City of San Rafael.
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 the 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. This year, Staff also provided the Staff Report and all other Council
documents to these interested parties 10 days in advance to give more time for public review.
The Franchise Agreement provides for a detailed review of MSS's operations every three years.
In the interim two-year period, annual summary reviews are conducted based on the last
detailed analysis. The last detailed review occurred in 2012 year for the 2013 rates. The
proposed rate levels for 2015 are based on a summary review.
San Rafael, Larkspur, Ross, the County of Marin including within the Ross Valley Sanitary
District boundaries, and the Las Gallinas Valley Sanitary District have contracts with MSS that
utilize a similar rate setting methodology and have joined together as a Franchisors' Group to
share information and reduce costs. The Franchisors' Group meets several times per year to
oversee MSS's operations, and have 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.
The 2012 amendment to the Franchise Agreement included many new provisions in order to
help stabilize rates and adjust to changes in the industry and MSS's 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. The Annual Report is included as Attachment D.
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. The State of California
has adopted several pieces of legislation mandating significant reductions of waste to landfill,
recognizing the long-term shortage of landfill space and the embedded environmental impacts
and greenhouse gas emissions associated with them.
Consequently, the City's Climate Change Action Plan (CCAP) adopted in 2009, and subsequent
Sustainability Element of the City's General Plan, included in 2011, identified eight specific
programs under the category of "Reduce Material Consumption and Increase Resource Re -
Use," six of which have been implemented to date. In addition, 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 Adrninistrator, and is currently chaired by San Rafael's City Manager.
The JPA prepared a Zero Waste Feasibility Study in December 2009 which identified an interim
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
goal of achieving 80 percent diversion of waste from landfill, and "zero waste in the next five to
17 years." Zero Waste has been defined as 94% diversion, taking into account the need for
producer responsibility and product stewardship, which is beyond local control. The City of San
Rafael adopted a Zero Waste Resolution in August 2011 intended to be consistent with the
JPA's goals.
MSS's current diversion rate is about 75%. 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. MSS
and the JPA are putting considerable time and effort into getting organics out of the landfill. The
Commercial Food to Energy (F2E) program is in its second year and is expected to increase
the diversion rate, and new statewide legislation; AB1826, which mandates commercial
composting starting in 2016, is expected to increase it as well.
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.
III. Marin Sanitary Services and Programs
MSS's services and programs are best described by presenting residential, commercial and
multi -family services separately. In addition, MSS provides trash and recycling pick-up for City
facilities, parks, and all public trash cans. Finally, MSS has a robust community outreach and
education program, which provides free resources to customers and schools to encourage
recycling and other zero waste activities.
Residential service includes single-family units and three or fewer units in a single structure.
San Rafael residential customers receive weekly trash, recycling, and organics composting
collection services.
Commercial and multi -family service includes all businesses and residential apartment buildings
with four or more units. Commercial customers receive separate trash and recycling containers
as well as cardboard pickup. MSS offers commercial customers a variety of container options
ranging from 32, 64 and 96 gallon carts and 1-6 yard bins and service of commercial
compactors and larger roll -off containers. Carts and bins can be picked up from one to six
times per week. In 2013, MSS started the F2E program in conjunction with Central Marin
Sanitation Agency (CMSA). This service is offered to customers with significant amounts of pre -
consumer food waste, which is taken to the bio -digesters at CMSA and turned into energy to
fuel the plant.
Multi -family buildings receive separate trash and recycling containers depending on area
available for can storage and green carts if they are interested in starting a compost program.
MSS has been working with apartment complex managers and tenants to develop 'green
teams' and increase recycling and composting at multi -family complexes.
IV. Rate Structure Analysis
The process of making changes to the rate setting methodology in 2012 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
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
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.
In 2013 the Franchisors' Group embarked on an analysis of the refuse rate structure to
determine if a rate structure change could create a sustainable long-term financial structure,
while further incentivizing waste reduction. The City entered into contracts with HF&H
Consultants and Cater Communications on behalf of the Franchisors' Group in order to better
understand customer perceptions and motivations, analyze the customer and financial data,
create a sample alternative rate structure, and test it in a pilot to see if it had potential to
achieve these goals.
Details of the pilot and analysis were presented to Council on November 17, 2014 in a Council
Study Session. Overall findings showed that specific messaging and formatting on the bill were
necessary to communicate the rate structure to both residential and commercial customers. In
addition, residential customers would benefit from keeping the rate structure the same, but
communicating clearly that it is a bundle of services, and they can change those services any
time to save money and increase diversion. It was determined that multi -family dwellers would
benefit more from direct education in apartment complexes since they do not receive a bill.
Commercial customers showed the greatest promise for an actual rate structure change, since
their relationship to the service was focused more on the bottom line. In addition, despite the
much fewer number of businesses than residential units, the amount of waste they produce is
comparable to the entire residential sector. The pilot tested a new rate structure in which there
was a significant increase to overall base rates with the opportunity to offset that increase
through credits or rebates for robust recycling. However, in order to implement such a dramatic
change in rate structure, MSS would need to revamp their billing and data systems. In addition
the rate structure would need to be implemented strategically over a long-term in order to
communicate it effectively and allow for customer behavior change to take place.
MSS has already started to incorporate some of the communications -related findings into their
outreach activities. The next step is for MSS and Staff to assess what the Impact to the overall
rate will be to enhance MSS's infrastructure and billing systems, and to work with the
Franchisors' Group to identify their level of interest in participation. Staff plans to update the
City Council Sustainability Subcommittee as work with MSS and the Franchisors' Group
progresses.
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 5.52%.
In 2014, 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 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 2015 with a proposed 7.88% increase over 2014
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.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 5
The full rate review and proposed adjustments are contained in the HF&H Report (Attachment
C). The following table contains a summary of the rate increase components, which reflect
projected costs for 2015 utilizing the agreed upon rate setting methodology in the Franchise
Agreement,
Table 2: Rate Adjustment Components
2015 Component Percentaues
Wages
(0.83%)
Benefits (including workers comp)
(0.65%)
Fuel &Oil
0.61%
Disposal
1.31%
Depreciation
1.58%
Other Operating Costs*
(0.08%)
Subtotal Operations
1.43%
Revenue Shortfall net of Franchise Fees
0.84%
Total Rate Adjustment
2.77%
`Includes other vehicle -related costs, profit, general &administrative
costs (e.g., public education, customer service, etc.) .
This year's rate increase is 2.77% due to a variety of factors as shown in the table. Wages and
Benefits were reduced due to unfilled positions and a decrease in 2015 Workers Compensation
insurance cost. Actual Fuel & Oil costs were up slightly, and Other Operating Costs were
reduced to reflect the end of consultant costs for the Rate Structure Analysis.
The two highest increases were for Disposal and Depreciation. Disposal reflects an increase in
cost per ton of the actual cost charged by the landfill. Depreciation reflects the costs for vehicle
replacement, building remodel and retrofit, and capital expenditures as part of MSS's overall
Five Year Capital Improvement Schedule as required by the Franchise Agreement. Finally,
Revenue Shortfall net of Franchising Fees is the projected increase needed to meet the
revenue requirement stipulated in the Franchise Agreement.
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,
which has happened in the past two years. Last year's recycling revenues resulted in a current
balance in the fund of $100,248. However, as intended, this reduction in recycling revenue did
not impact the overall rates.
One alteration to the rate sheet this year is the addition of a nominal fee for extra recycling carts
in the residential sector of $1.70 per cart. This recommendation came from the pilot Rate
Structure Analysis as a means to account for the value of the service, much like is in place for
extra green carts for organics pickup and cornposting. The cost is the same as the extra green
cart fee, and was perceived to be "reasonable" by the majority of customers in the focus groups
and pilot program. The fee only accounts for the depreciation costs of acquiring extra carts and
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
does not reflect the actual cost of service, which would be higher.
With the above recommendation, the cost of a 32 gallon residential cart would be increased
approximately $0.86 per month, from $31.19 to $32.05. The cost of commercial service for a 96
gallon cart picked up once a week would be increased by approximately $2.58 per month, from
$92.97 to $95.55. The cost of commercial service for a 3 yard dumpster picked up once per
week would be increased by approximately $10.67 per month, from $385.27 to $395.94.
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 C. It summarizes the survey data for residential 30-35
gallon can weekly service with weekly curbside recycling and weekly green waste pickup. The
2015 proposed rate of $32.05 in San Rafael is slightly lower than the Marin County average of
$33.89, Attachment C 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 $395.94 is lower than the average of other Marin County jurisdictions which is $463.58. San
Rafael's rates have traditionally been comparable with rates in other Bay Area jurisdictions.
As in previous years, staff is recommending that the 2.77% increase be applied across the
board to all residential, multi -family and commercial service accounts. Actual rates for all
services are provided as an attachment to the Resolution to this report.
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 2.77% 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, 2015.
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
Attachment D: MSS Franchisors' Group 2013 Annual Report
RESOLUTION NO. 13855
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, 2015
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 subrnitted 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, 2015. 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 15, 2014, by the following
vote, to wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmernbers: None
" .a re
ESTHER C. BEIRNE, City Clerk
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 01/01/2015
Rate Increase: 2.77%
Rates are ner month unless otherwise specified.
Residential
Standard Base Rates
20 gallon cart flat"
32 gallon cart flat
64 gallon cart - flat
96 gallon cart - flat
20 gallon cart - hill"
32 gallon cart - hill
64 gallon cart - hill
96 gallon cart - hill
'New rate In 2008. For single family residential
customers. Subject to account review by MSS
Low Income Rales`
Low Income - 20 gallon cart - flat
Low Income - 32 gallon cart - flat
Low Income - 64 gallon cart - flat
Low Income - 20 gallon cart - hill
Low Income - 32 gallon cart - hill
Low Income - 64 gallon cart - 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 cart)
Additional Yard Waste Cart Rental
Additional Dual Sort Recycling Cart Rental
Steam Clean Cart Charge
Discontinued Rates'"
Senior rale - flat** (Bi -weekly service)
Senior rale - hill- (Bi -weekly service)
"Customers with these rates prior to 2005 will keep
existing rate type. No new customers will be added
with this rate type.
Apartments
32 gallon cart - flat
64 gallon cart - flat
96 gallon cart - flat
32 gallon cart - hill
64 gallon cart - hill
96 gallon cart - hill
-Rates are per container, per # of pickups/wk
-Minimum of one cart per unit
2015 1 1 2014 2015 2015
RATE RATE INCREASE % INCR.
$ 27.24
$ 26.51
$ 0.73
2.75%
32.05
31.19
0.86
2.76%
64.10
62.38
1.72
2.76%
96.15
93.57
2.58
2.76%
30.86
30.03
0.83
2.76%
36.31
35.33
0.98
2.77%
72.62
70.66
1.96
2.77%
108.93
105.99
2.94
2.77%
$ 21.79
$ 21.21
$ 0.58
2.75%
25.60
24.91
0.69
2.77%
51.20
49.82
1.38
2.77%
24.69
24.02
0.66
2.76%
29.06
28.28
0.78
2.76%
58.12
56.56
1.56
2.76%
$ 64.10
$ 62.38
$ 1.72
2.76%
128.20
124.76
3.44
2.76%
4.16
4.05
0.11
2.72%
8.42
8.19
0.23
2.81%
1.70
1.65
0.05
3.03%
1.70
-
11.00
-
$ 22.63
$ 22.02
$ 0.61
2.77%
28.81
28.03
0.78
2.78%
$ 32.05
$ 31.19
$ 0.86
2.76%
64.10
62.38
1.72
2.76%
96.15
93.57
2.58
2.76%
36.31
35.33
0.98
2.77%
72.62
70.66
1.96
2.77%
108.93
105.99
2.94
2.77%
12/2/2014 1 of 5 San Rafael - Exhibit C Rate Sheet -2015.)1s
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 01/01/2015
Rate Increase: 2.77%
Rates are per month unless otherwise specified.
Apartments (cont)
$ 296.00
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
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
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
1 x/week
FL
5 yd bin
2 x/week
FL
5 yd bin
3 x/week
FL
5 yd bin
4 x/week
FL
5 yd bin
5 x/week
FL
5 yd bin
6 x/week
FL
6 yd bin
1 x/week
FL
6 yd bin
2 x/week
FL
6 yd bin
3 x/week
FL
6 yd bin
4 x/week
FL
6 yd bin
5 x/week
FL
6 yd bin
6 x/week
RL
1 yd bin
1 x/week
RL
1 yd bin
2 x/week
RL
1 yd bin
3 x/week
RL
1 yd bin
4 x/week
RL
1 yd bin
5 x/week
RL
1 yd bin
6 x/week
(No longer offered to new customers)
2015 1 1 2014 11 2015 1 2015
RATE RATE INCREASE� % INCR.
$ 304.20
$ 296.00
$ 8.20
2.77%
697.27
678.48
18.79
2.77%
1,055.48
1,027.03
28.45
2.77%
1,420.00
1,381.73
38.27
2.77%
1,790.93
1,742.66
48.27
2.77%
2,168.20
2,109.76
58.44
2.77%
$ 395.94
$ 385.27
$ 10.67
2.77%
725.66
706.10
19.56
2.77%
1,102.81
1.073.09
29.72
2.77%
1.489.49
1,449.34
40.15
2.77%
1,885.71
1,834.88
50-83
2.77%
2,291.46
2,229.70
61.76
2.77%
$ 564.87
$ 549.64
$ 15.23
2.77%
1,041.02
1,012.96
28.06
2.77%
1,580.50
1,537.90
42.60
2:77%
2,132.82
2,075.33
57.49
237%
2,648.38
2,577.00
71-38
2.77%
3,275.58
3,187.29
88.29
2.77%
$ 611.01
$ 594.54
$ 16.47
2.77%
1,209.43
1.176.83
32.60
2.77%
1,838.00
1.788.46
49.54
2.77%
2,482.45
2,415.54
66.91
2.77%
3,142.84
3,058.13
84.71
2.77%
3,819-11
3,716.17
102.94
2.77%
$ 716.10
$ 696.80
$ 19.30
2.77%
1,451.33
1,412.21
39.12
2.77%
2,205.59
2,146.14
59.45
2,77%
2,978.97
2,898.68
80.29
2.77%
3,771.41
3,669.76
101-65
2.77%
4,582.92
4,459.39
123,53
2.77%
$ 199.36
$ 193.99
$ 5.37
237%
401.90
391.07
10.83
2.77%
607.66
591.28
16.38
2.77%
816.58
794.57
22.01
237%
1,028.65
1,000.92
27.73
2.77%
1,243.91
1,210.38
33.53
2.77%
12/2/2014 2 of 5 San Rafael - Exhibit C Rate Sheet-2015,xls
EXHIBIT C
YNARVNSANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: O011C20iS
Rate Increase: 2.77%
2015
2014
2016
2015
Rates are per month unless otherwise specified.
RATE
RATE
INCREASE
% INCR,
Apartments (cont.)
RL 2ydbin 1 x/weex
RL 2ydbin 2x/week
610.24
593.79
16.45
2.77%
RL 2 yd bin o x/week
92491
899.98
24.93
2.77%
RL 2ydbin 4x/week
RL 2ydbin 5x1week
RL 2 yd bin G x/week
Compacted refuse:
RO Hauling Charge (Per container per pull)
RO Tipping Fee per ton
FL Compacted Rate Per Yard
Commercial
32gallon cart
G4gallon cart
6170
61.98
1.72
2.78%
SGgallon cart
Compacted 32gallon
Compacted 54gallon
127.40
123.96
3.44
2.78%
Food waste 32 gallon
1120
12.84
0.36
2.80%
Food waste 54gallon
Commercial organics/compost 52gallon
1120
-
Commercial organ ics/cnmpnoiO4gallon
2639
-
Bags (%2goUon)
Rates are per container, per wmnic^upstwk
Food Waste service: o"charge for the first pickup o'first can
FL 2 yd bin per pickup
FL 2ydbin 1 x1week
304.20
296,00
8.20
2.77%
FL 2 yd bin 2 x/week
698.87
680.03
18.84
2.77%
FL 2ydbin ox/week
FL 2ydbin 4x/week
FL 2 yd bin 5 x/week
1,8M84
1,758.14
48.70
2.77%
FL 2 yd bin G x1week
FL 3 yd bin per pickup
FL 3 yd bin 1 x1week
395.94
38517
10.67
2.77%
FL 3ydbin 2x1week
737.32
717.45
19.87
2.77%
FL 3ydbin 3x1week
1,12186
1,093.57
30.29
2.77%
FL 3 yd bin 4 x1week
FL 3ydbin 5x1week
FL 3 yd bin O x1week
2,35506
2,291.58
63.48
2.77%
FL 4 yd bin per pickup
FL 4 yd bin 1 x/week
56487
54964
15.23
2.77%
FL 4 yd bin 2 x1weok
FL 4 yd bin 3 x1week
FL 4ydbin 4x1week
FL 4 yd bin 5x/week
FL 4ydbin 5x/week
3,32130
3,233.73
89.57
2.77%
FL 5 yd bin per pickup
FL 5 yd bin 1 x1week
611 01
594.54
16.47
2.77%
FL 5 yd bin 2 x1week
1,228.85
1,19573
33.12
2.77%
FL 5ydbin 5x1week
FL 5 yd bin 4 x/week
FL 5 yd bin 5 x1week
3,221.25
3,134A3
86.82
2.77%
FL 5ydbin 6 x1week
L_3,921.14
1
L_£,819.34
__105.80J
L__2,77%
12/2.12014 3 of 5 San Rafael - Exhibit C Rate Sheet-2015.yJs
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 0110112015
Rate Increase: 2.77%
2015
2014
2015
2015
Rates are per month unless otherwise specified.
RATE
RATE
INCREASE
% INCR.
Commerciai (cont)
FL 6 yd bin per pickup
$ 168.55
$ 164.01
$ 4.54
2.77%
FL 6 yd bin 1 x/week
725.39
705.84
19.55
2.77%
FL 6 yd bin 2 x/week
1,474.62
1,434.87
39.75
2.77%
FL 6 yd bin 3 x/week
2,247.74
2,187,16
60.58
2.77%
FL 6 yd bin 4 x/week
3,044.68
2,962.62
82.06
2.77%
FL 6 yd bin 5 x/week
3,865.48
3,761.29
104.19
2.77%
FL 6 yd bin 6 x/week
4,710.15
4,583.20
126.95
2.77%
RL 1 yd bin 1 x/week
$ 206.89
$ 201.31
$ 5.58
2.77%
RL 1 yd bin 2 x/week
417.73
406.47
11.26
2.77%
RL 1 yd bin 3 x/week
632.59
615.54
17.05
2.77%
RL 1 yd bin 4 x/week
851.41
828.46
22.95
2.77%
RL 1 yd bin 5 x/week
1,074.19
1,045.24
28.95
2.77%
RL 1 yd bin 6 x/week
1,300.98
1,265.91
35.07
2.77%
(No longer offered to new customers)
RL 2 yd bin 1 x/week
$ 313.34
$ 304.89
$ 8.45
2.77%
RL 2 yd bin 2 x/week
634.64
617.53
17.11
2.77%
RL 2 yd bin 3 x/week
963.86
937.88
25.98
2.77%
RL 2 yd bin 4 x/week
1,301.08
1,266.01
35.07
2.77%
RL 2 yd bin 5 x/week
1,806.84
1,758.14
48.70
2.77%
RL 2 yd bin 6 x/week
2,192.04
2,132.96
59.08
2.77%
RO 10 yd box per pickup
240.13
$ 233.66
$ 6.47
2.77%
RO 10 yd box 1 x/week
1,022.37
994.81
27.56
2.77%
RO 10 yd box 2 x/week
2,092.22
2,035.83
56.39
2.77%
RO 10 yd box 3 x/week
3,210.88
3,124.34
86.54
2.77%
RO 10 yd box 4 x/week
4,376.60
4,258.64
117.96
2.77%
RO 10 yd box 5 x/week
5,590.06
5,439.39
150.67
2.77%
RO 10 yd box 6 x/week
6,851.18
6,666.52
184.66
2.77%
RO 12 yd box per pickup 1 $ 288.18 1 $ 280.41 1 $ 7.77 1 2.77%
12/2/2014 4 of 5 San Rafael - Exhibit C Rate Sheet_2015.)ds
EXHIBIT C
MARIN SANITARY SERVICE
CITY OF SAN RAFAEL RATE SCHEDULE
Rates Effective: 01/01/2015
Rate Increase: 2.77%
Rates are per month unless otherwise specified.
Commercial (cont.)
RO 18 yd box
per pickup $
RO 18 yd box
1 x/week
RO 18 yd box
2 x/week
RO 18 yd box
3 x/week
RO 18 yd box
4 x/week
RO 18 yd box
5 x/week
RO 18 yd box
6 x/week
RO 20 yd box
per pickup $
RO 20 yd box
1 x/week
RO 20 yd box
2 x/week
RO 20 yd box
3 x/week
RO 20 yd box
4 x/week
RO 20 yd box
5 x/week
RO 20 yd box
6 x/week
RO 25 yd box
per pickup $
RO 25 yd box
1 x/week
RO 25 yd box
2 x/week
RO 25 yd box
3 x/week
RO 25 yd box
4 x/week
RO 25 yd box
5 x/week
RO 25 yd box
6 x/week
Compacted refuse:
RO Hauling Charge (Per container per pull) $
RO Tipping Fee per ton
$
FL Compacted Rate Per Yard $
Lock Charges - single pickup
$
Lock Charges - weekly pickup
$ 12.95
Refuse per yard - per pickup
2.77%
Box Rental - 1 yard
Box Rental - 2 yard
Box Rental - 3-5 yard
Box Rental - 6 yard
4,176.16
Box Rental - 10 yard
4,063.60
Box Rental - 18 yard
112.56
Box Rental - 20 yard
2.77%
Box Rental - 25 yard
Return Trip Charge
Steam Clean Bin Charge
Overweight Charge Per Ton-
8,733.95
"'Comm'I boxes exceeding 300lbs/yard
8,498.54
RATE 1 2014 2015 2015
RATE INCREASE % INCR.
432.27
$ 420.62
$ 1165
2.77%
1,836.31
1,786.82
49.49
2.77%
3,758.55
3,657.24
101.31
2.77%
5,766.61
5,611.18
155.43
2.77%
7,860.51'
7,648.70
211.87
2.77%
10,040.39
9,769.77
270.62
2.77%
12,306.12
11,974.43
331.69
2.77%
480.31
$ 467.36
$ 12.95
2.77%
2,040.38
1,985.38
55.00
2.77%
4,176.16
4,063.60
112.56
2.77%
6,407.35
6,234.65
172.70
2.77%
8,733.95
8,498.54
235.41
2.77%
11,156.01
10,855.32
300.69
2.77%
13,673.45
13,304.90
368.55
2.77%
600.36
$ 584.18
$ 16.18
2.77%
2,854.20
2,777.27
76.93
2.77%
5,841.97
5,684.51
157.46
2.77%
8,612.15
8,380.02
232.13
2.77%
11,739.17
11,422.76
316.41
2.77%
14,994.64
14,590.48
404.16
2.77%
18,378.40
17,883.04
495.36
2.77%
197.50
$ 192.18
$ 5.32
2.77%
87.87
$ 85.50
2.37
2.77%
76.31
$ 74.25
2.06
2.77%
4.65
$ 4.52
$ 0.13
2.88%
21.14
20.57
0.57
2.77%
29.47
28.68
0.79
2.75%
62.42
60.74
1.68
2.77%
70.26
68.37
1.89
2.76%
77.71
75.62
2.09
2.76%
87.81
85.44
2.37
2.77%
103.60
100.81
2.79
2.77%
207.62
202.02
5.60
2.77%
210.67
204.99
5.68
2.77%
219.51
213.59
5.92
2.77%
45.69
44.46
1.23
2.77%
91.56
89.09
2.47
2.77%
172.12
167.48
4.64
2.77%
1212/2014 5 of 5 San Rafael - Exhibit C Rale Sheet2015.)ds
Marin Independent Journal
150 Alameda del Prado
PO Box 6150
Novato, California 94948-1535
(415) 382-7335
legals@marinit com
SAN RAFAEL,CITY OF
CITY OF SAN RAFAEL,CITY CLERK, ROOM 209.1400
FIFTH AVENUE, SAN R
SAN RAFAEL CA 94915-1560
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Marin
FILE NO. 0005364733
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
1 21512 01 4, 1 21812 01 4
I certify (or declare) under the penalty of perjury that the foregoing
is true and correct
Dated this 8th day of December. 2014
Signature
ATTACHMENT B
Legal No 0005364733
CRY OF SAN RAFAEL
111111 r3�i A01 LMINA0141
The City Council of dip City of San Rafae. «Ih
hold apubllc hparing:
PURPOSE: PubltcHearing:
To consider a request by Marin Sanitary Spry
ice for a rate Increase for refuse collpctlon and
recycling services and adoption of a Resolution
amending the agrppmpnt setting max Mum
rates for the year 2015.
DATEMME/PLACEt
Monday December 15, 2014, at 7:00 pm.
CI[y Half Council Chambers,
141017 Firth Avenue, San Rafae!
WHAT WILL HAPPEN:
You may comment on the proposed Roso.utlon.
The Cfty Council will consider all public testi
mony and will then deckle whether to approve
the Resolution.
IF YOU CANNOT ATTEND:
You may send a letter to Esther C. BpFne, Crty
Clerk.C ty of San Ralapi, P.`0 Box 151560, San
Rafael, CA 94915-I
4915-1 550. You may also hand de-
liver a ipttpr to the City Clerk prrnl to the
meeting.
FOR MORE INFORMATION:
You may contact Cory Bytol, Sustainability and
Volunteer Program Coordinator, at '415) 485
3407. Officp hours are Monday through Frklay.
8:30 a.m. to 5:()O p.m.
SAN RAFAEL CITY COUNCIL
/s/ ESTHER C, BEIRNE
ESTHER C. BEIRNE, City Clerk
NO. 1.181 DEC. 5, 8, 2014
November 11, 2014
This report provided electronically to save environmental resources
201 N. Civic Drive, Suite 230
Walnut Creek, California 9*596
Telephone: 925/977-6950
Fax:925/977'6955
wwm^hfh'consu/mnts.cvm
November 11, 2014
Mr. Daniel Schwarz
City Manager
City ofLarkspur
4OOMagnolia Avenue
Larkspur, CA 94939
Mr. 5aaidFakharzacleh
Assistant Director, Dept. ofPublic Works
County ufMarin
35O1Civic Center Drive ,Suite 3UO
San Rafael, [A 949O3-4155
Ms. Susan McGuire
Administrative Services Manager
Las GaUinasValley Sanitary District
]OOSmith Ranch Road
San Rafael, [A 94903
Reference Number: S3869
�Managing Tomorrow's Resources Today
Mr. Jim Schutz
Assistant City Manager
City ofSan Rafael
1400Fifth Avenue
San Rafael, [A 94919-1560
Mc Rob 8rau|ik
Town Manager
Town otRoss
31Sir Francis Drake Blvd
Ross, CA 94957
Subject: Review ufMarin Sanitary Service's 2015Rate Application
Dear Ms. McGuire and Messrs. Schwarz, Schutz, Fakharzadeh, and Braulik:
Robert [. Hilton, CIVIC
John m\Fa=kopf,PE
Lahh B.Ezzet, CIVIC
Richard 1Simonson, CIVIC
Marva M. Sheehan, CPA
Robert [. Hilton, CIVIC
On August 1 3014, Marin Sanitary Service (IVISS) submitted its application for a 7.88% increase to its
solid waste rates, effective January 1, 2015. HFQH conducted n review of the application based on the
rate methodology agreed to between KASS and the cities of San Rafael and Larkspur, the Town of Russ,
the County of Marin, and the Las Gallinas Valley Sanitary District (LGVSD), collectively referred to as the
"Franchisors". We find that a 2.7796 increase is appropriate. The following table summarizes, by
jurisdiction, the current and proposed 32-geUon residential rates, which are the most common
subscription level.
Marin Franchisors Group
November 11, 2014
Page 2 of 6
Managing Tomorrow's Resources Today
Table 1: Residential 32 -gallon Rate Summary
Jurisdiction
Current Rate
$ mo.
Proposed Rate
$ mo.
$ Difference
San Rafael
$31.19
$32.05
$0.86
Las Gallinas Valley Sanitary District
$27.26
$28.02
$0.76
Larkspur
$34.26
$35.21
$0.95
Ross
$29.82
1 $30.65
$0.83
Ross Valley Sanitary District
$32.32
$33.22
$0.90
County of Marin
$31.72:::[
$32.60
$0.88
jit flit S, and Recommendations
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 2.77% to rates is
appropriate to compensate MSS for its projected expenses based on the agreed-upon procedures. We
have reviewed our findings with MSS and they are in agreement with our proposed rate adjustment.
The following table summarizes the components of the rate adjustment:
Table Z: Rate Adjustment Components
2015 Component Perce
Wages
(0.83%)
Benefits (including workers comp)
(0.65%)
Fuel & Oil
0.61%
Disposal
1.31%
Depreciation
1.58%
Other Operating Costs*
(0.09%)
Subtotal Operations
1.93%
Revenue Shortfall net of Franchise Fees
0.84%
Total Rate Adjustment 2.77%
• Includes other vehicle -related costs, profit, general & administrative
costs (e.g., public education, customer service, etc.) .
Marin Franchisors Group
November 11, 2014
Page 3 of 6
Managing Tomorrows Resources Today
This lower -than -applied -for adjustment is based on several adjustments to MSS' rate calculation as
described in Section IV of the report and reflected in Table 5 and Attachment 2.
Summary of Significant Changes for 2015
2015 Rate Adjustment Components (2.77%)
Wages — (0.83%)
As shown in Table 2, the wages expense component favorably contributed -0.83% to the overall
recommended 2.77% rate adjustment. The decrease is primarily attributable to unfilled positions related
to the Operation Improvement Plan approved in 2012 and initially included in the 2013 and 2014 rates.
The accounting position is included in the 2015 rates as MSS anticipates filling the position in early 2015.
Benefits — (0.65%)
As shown in Table 2, the wages expense component favorably contributed -0.65% to the overall
recommended 2.77% rate adjustment. The decrease is primarily attributable to an 18.78% decrease in
the 2015 premiums for Workers Compensation insurance cost.
Fuel and Oil —0.61%
As shown in Table 2, the fuel expense component contributed 0.61% to the overall recommended 2.77%
rate adjustment. The increase is primarily resulting from a favorable fuel expense adjustment from the
2014 rate setting process that is not reoccurring in 2015 rate setting.
Disposal —1.31%
As shown in Table 2, the disposal expense contributed 1.31% to the overall recommended 2.77% rate
adjustment. The increase is a result of the annual change in disposal cost per ton (by the applicable
Consumer Price Index or contract price) and a favorable disposal adjustment from the 2014 rate setting
process that is not reoccurring in the 2015 rate setting.
Depreciation —1.58%
As shown in Table 2, the depreciation expense component contributed 1.58% to the overall
recommended 2.77% rate adjustment. The increase is primarily due to additional depreciation for
replacement vehicles, building remodel and retrofit, and increased capital expenditures for equipment
repairs and maintenance.
Marin Franchisors Group
November 11, 2014
Page 4 of 6
Other Operating Expenses — (0.09)%
Managing Tomorrow's Resources Today
As shown in Table 2, the "other operating costs" component favorably contributed -0.09% to the overall
recommended 2.77% rate adjustment.
Revenue — 0.84%
As shown in Table 2, the revenue shortfall contributed 0.84% of the overall recommended 2.77% rate
adjustment.
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 3, the reserve amount decreased $47,305 to
$100,249. The decrease in the reserve is due to an increase in processing costs per ton ($188.84 in 2013
vs. $173.42 in 2012) from a combination of inflation and costs being spread over fewer tons. Favorable
commodity pricing per ton ($177.54 in 2013 vs. 164.67 in 2012) partially offset the cost increases.
Table 3: Summary of Net Recyclable Revenue Reserve
Rate Year
Based on
Financial Year
Net Addition
(Reduction)
to Reserve
2013
2011
$ 232,707
2014
2012
$ (85,153)
2015
2013
$ 47,305
Reserve Balance
$ 100,249
The next update to the reserve will be completed as part of the 2016 rate application process and will be
based upon 2014 calendar year results. Should the netosp itive value in the reserve exceed $250,000,
then the excess shall be used to offset one-time costs related to diversion programs approved by a
majority of the agencies comprising the Franchisors' Group. Should the net negative value in the reserve
exceed $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.
Managing Tomorrow's Resources Today
Table 4 provides a comparison of the approved 2014 revenue requirement to the proposed 2015
revenue requirement necessary to reimburse IVIDD in accordance with the agreed-upon mhs setting
methodology. It is important to understand there are several expense line items that have special
treatment in an index year based on the rate setting methodology. Those line items include disposal,
fuel, depreciation, interest, workers' compensation (a component of the benefits line) and JPA fees (a
component of the Other Operating line). Those expenses include adjustments for actual expenditures
and third -party rate projections rather than an application of a change in CPI.
It should be noted the revenue requirements for both years are projections and IVI66 is not guaranteed
the operating profit asshown inthe table.
Table 4: Comparison of 2014 Approved Revenue Requirement to 2015 Proposed Revenue Requirement
2014 Approved
2015 Proposed
Percent
Rate Application
Rate Application
Change
Change
Exoenses: Current IMSS Operations
Disposal Fees
3,487,405
3,799,762
312,357
9.0%
Fuel &Oil
975,828
1,120,381
144,553
14.8%
Maintenance Expense
1,405,170
1,429,058
23,888
1.7%
Depreciation/Leases
1,711,455
2,088,243
376,788
22.0%
Other Operating/G&A
3,171,298
3,126,924
(44,374)
(1.4%)
Total Operating Expenses
21,517,648
21,977,240
459,592
2.1%
Operating Profit
2,258,757
2,307,003
48,246
2.1%
Total Expenses for Current Operations
24,094,780
24,555,411
460,631
1.9%
Revenue Requirement for Current Services
24,094,780
$ 24,555,411
$ 460,631
1.9%
The variances from prior year are summarized osfollows:
1. VVages— Decrease resulted from IVISS not filling all of the positions proposed as part of its
Operational Improvement Plan;
l Benefhs—Decreaseosuhedfnom lower Workers' Compensation Insurance premiums for 2O15;
3. Disposal Fees—|ncrease results from the "true -um" for 2013 and 2014 disposal costs and the
contractual change inConsumer Price Index ([M)intip fees;
Marin Franchisors Group
November 11, 2014
Page 6 of 6
Managing Tomorrow's Resources Today
4. Fuel & Oil -The increase is primarily resulting from a favorable fuel expense adjustment from
the 2014 rate setting process and not reoccurring in 2015 rate setting.
5. Maintenance — Increase primarily the change in CPI
6. Depreciation —The increase is primarily due to additional depreciation for replacement vehicles,
and building remodel and retrofit.
7. Other Operating / G&A — Decrease primarily from elimination of consulting fees for the 2014
rate structure project.
8. Interest Expense — Decrease resulted primarily from MSS renegotiating is debt at lower interest
rates.
We would like to express our appreciation to MSS' management and staff for their assistance. In
addition, we express our appreciation to each of you for your assistance and guidance during the course
of the review. Should you have any questions, please call me at (925) 977-6961.
Sincerely,
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
Franchisors of Marin Sanitary Service Table of Contents
Review of Marin Sanitary Service's 2015 Rate Application
TABLE OF CONTENTS
SECTION I. BACKGROUND.........................................................................................1
Description tlon of CnWriirr° rrlt Services .......... .. 1
SECTION II. RATE REVIEW APPROACH.................................................................... 2
Roto justniont Methodology- gy—...............................................................................
HF&H Scope of d" evie t .................. .... .. ..... ................ ......... ....... ............ .......
Urnstatlorls. .....................................................u..,.....,.,,..,,,.........,.,.., ...........,....
SECTION III. MSS' PROJECTION METHODOLOGY (INDEX YEAR) .......................... 5
Current Operations ...............................................................................................
Operation Inri ror ement F,'lore .................... ..... ........a....,.,.......,......, ....................— ,.6
ornmercl l Food to Energy (F2E) Prot r rn......... .
Profit......... ...... ...........................................................................................
MSS' Cao c Wed Rate Adjustment ,,,..,........,........................................,................. "c
SECTION IV. PROPOSED ADJUSTMENTS................................................................. 8
Adjustments to 214-11rojoctod Expenses for Current Operations 9
AdjustrneMs to Projected Reverin_oo at CUrrient Rates—,—...—.... .... ........ ....... --- 1
djars0 nents too Not Recy laba eevelIlUo Reserve .... -- .................. .....a ......... --- 11
SECTION V. RATE ADJUSTMENT.............................................................................12
Rate AdjUstment ............... ... --.........
Survey of Comparable Rates...........
ATTACHMENTS
12
................ .................. ............ 't
Attachment 1— Marin Sanitary Service Rate Application Summary
Attachment 2 — Adjusted Rate Application Summary
Attachment 3 — Rate Survey
Attachment 4 — Chart of Residential 32 -Gallon Rates
Attachment 5 — Chart of Commercial 3 Cubic Yard Rates
HF&H Consultants, LLC i November 11, 2014
This Page Intentionally Left Blank
Franchisors of Marin Sanitary Service Section I. Background
Review of Marin Sanitary Service's 2015 Rate Application
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-N), 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).
In early 2014, MSS began collection and processing for the Food -to -Energy program (F2E) previously
approved by the Franchisors and incorporated into the 2015 rate application. MSS is operating the
program 6 days per week and averaging 4.5 tons per day from approximately 60 customers currently
participating in the program. Food waste is collected using a specialized vehicle and processed on a
dedicated sort line at MSS and delivered to the Central Marin Sanitary Agency (CMSA) for conversion to
energy.
HF&H Consultants, LLC 1 November 11, 2014
Franchisors of Nlarin Sanitary Service Section II. Rate Review Approach
Review of Marin Sanitary Service's 2015 Rate Application
SECTION II. RATE REVIEW APPROACH
Rate Adjustment �MethGdology
The Rate Adjustment Methodology was developed in cooperation with MSS and approved by the
Franchisors in 2001. In 2012, the Franchisors negotiated the revised Contractor's Revenue Requirement
and Rate Adjustment methodology with MSS.
This revised method was used to determine 2015recommended rates. The final projected 2013year
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 2015 rates. Section III
describes the methodology in more detail and findings from the application of the methodology to MSS'
Application.
cople of Review
The Franchisors engaged HF&H in August 2014 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 14, 2014. 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, 2014, and 2015.
• Comparing the results to MSS's audited financial statements for rate year 2013 and year-to-date
revenues and expenses for 2014 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 2015 indexed expenses and compare
them to the calculated expenses for 2014, established in our prior report, and the calculated
changes to the indices.
• Reviewing MSS management's projection of other expenses including:
o Workers' Compensation, which 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.
o Disposal Expense for residential and solid waste tons transferred at MSS' transfer station,
which will be reviewed by evaluating MSS' projection for 2015 disposal expense and MSS's
adjustments for the previous projections for Rate Years 2013 and 2014 based on historical
trends, management's plans and adjustment to the disposal rates;
F&H Consultants,L�C- ...
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November 11 2014
Franchisors of Marin Sanitary Service Section 11. Rate Review Approach
Review ofMarin Sanitary Service's ZO1GRate Application
o Commercial K8kod Waste Processing Expense for commercial tons processed at MSS'
processing facility, which will be reviewed by evaluating yW66' projection for 20I5
commercial mixed waste processing and MSS' adjustments for the previous projections
for Rate Years 2O13 and 2014 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, which will he reviewed by evaluating K466' projection for
I015 organics processing and M65' adjustments for the previous projections for Rate
Years 2013 and 2014 based on historical trends and management's plans. VVewill verify
that the processing rate per ton was calculated in accordance with the rate -setting
methodology.
o The Transfer/Transport Adjustment for ions not affiliated with the Franchisors Group
transferred and transported through MSS' transfer station, which will be reviewed by
evaluating K455' tonnage projection for 2015 and yW65' adjustments for the previous
tonnage projections for Rate Years 2013 and 2014 based on historical trends and
management's plans. We will verify that the Transfer/Transport Fee per Lon was
calculated in accordance with the rate setting methodology.
o Fuel Expense, which will be reviewed by evaluating MSS' 2015 projection and the
adjustments for Rate Years 2013 and 2014. We will review KX66' calculations of the
average price per gallon for fuel and verify the use of the proper projected gallons.
o Depreciation/Lease Expense projections, which will be reviewed by evaluating the
reasonableness of K855 management's estimates for these expenses based on historical
trends and records and K855 management's plans. We will review K466' adjustments to
previous year projections, ifany.
o ]PA Fees expense, which will be reviewed byanalyzing documentation from the JPA and
MSS projections.
o The costs related to the Commercial Food to Energy (FJE) program, which 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,
including:
o Interest Expense, which will be reviewed based on K4SS' actual interest from its loan
amortization schedules for actual and projected capital expenditures.
o Franchise Fees, which will be reviewed based on each agency's appropriate rate and the
forecasted values.
o Other Agency Fees, which will be reviewed based on fees established by each agency and
forecasted values.
o Other Revenues, which 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 bythe rates from the Franchisors Group ratepayers.
Franchisors of Marin Sanitary Service Section IL Rate Review Approach
Review ofMarin Sanitary Service's 3Dl5Rate ApplicabVn
• Reviewing MSS' calculation of the increase or decrease to the reserve for future diversion
programs isinaccordance with the procedures developed in2O12.
• 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 in2O12.
• 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 inother counties.
• Preparing awritten report that documents our findings and recommendations.
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 awho|e. Accordingly, we do not express such an opinion. Hovvever,[hieo
Smith McMullin + McGuire, An Accountancy Corporation, issued an unqualified opinion of MSS'
2013financia|statements. The unqualified opinion denotes that the financial statements ofMSS were
presented fairly in all material respects.
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 donot occur asexpected and the difference may besignificant.
HF&HConsultants, LLC 4 November 11,2O14
Franchisors of Marin Sanitary Service Section III. MSS' Projection Methodology (Index Year)
Review of Marin Sanitary Service's 2015 Rate Application
SECTION III. MSS' PROJECTION METHODOLOGY (INDEX YEAR)
Current Operations
Projected costs for 2015 are based on costs developed during the last detail review (2013). In projecting
the 2013 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 2015expenses (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 projected 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 2013 and 2014;
• 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 2013 and 2014;
• 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 2015;
• Forecasting projected 2015 disposal expense using projected tons multiplied by the applicable
disposal/processing rate for 2015, plus adjustments for 2013 actual disposal expenses, and
estimated 2014 disposal expenses calculated based on actual 2013 results and year-to-date
2014 results;
• Forecasting projected 2015fuel and oil expense as follows:
o Projected Year (2015) 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,
rs Current Year (2014) 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 2014 fuel expense established during the previous review; plus,
o Revised Prior Year (2013) Expense Adjustment - gallons established in the most recent
detail year review (2013) at the average price per gallon based on actual fuel purchases
for 2013 less the 2013 fuel expense established during the previous review.
•; Forecasting projected 2015 equipment and vehicle maintenance expense was based on the
projected maintenance expense for 2013 increased by the percentage change in the annual
HF&H Consult__...._...... _..............................................._-.._-.....ro..............���_._._._..�_ �..��-........_...�._��................................
ants, LLC 5 November 11, 2014
Franchisors of Marin Sanitary Service Section III, MSS' Projection Methodology (Index Year)
Review ofMarin Sanitary Service's 2O1GRate Application
average Motor Vehicle Related Index (All Urban Consumers, U.SiCity Average; 1982-1984=100)
for June 2O13and 2U14;
• Forecasting projected 2O15depreciation and baseexpenaL-based on IVISS'sactual depreciation
expense, plus projected depreciation on anticipated purchases in the Nate Year (allocation of
depreciation of trucks to the Franchisors Group and other operations was based on truck usage);
• Forecasting projected 2015]PA Fees based on tons collected for the Franchisors' Group by K4SS
for the period determined and rate established bythe JPA;
• Forecasting projected 2015 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 (AU Urban Wage Earners;
1982-19O4=1UU) for June 2O13and 2O14; and,
• Forecasting projected 2015 interest expense based on K4SS's actual interest from its loan
amortization schedules for actual and projected capital adjusting 2O15for any projected asset
purchases from the prior rate year which were not purchased in projected time period.
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 2014 and projections for the remainder of the year were multiplied by the average
percentage surplus or shortfall rate revenue for the 3 most recently completed rate years. K4SS
calculated the 3 year average achievement percentage of98.O4%, meaning actual revenue received has
averaged 98.8496ofwhat was projected over the past three years.
Operation Irnprovernent Plan
In 2012, MSS contracted with R. i Proto Consulting Group, Inc. (Proto) to assess K8SS' collection
operation and inform management of improvements and changes necessary for the company's success.
IVISSmanagement reviewed the results ofthe report and has begun filling the seven personnel additions
recommended byProto. 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 atota| 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 3 -year
period amounted to $1.2 million, ranging from $800,000 in 2013 to $25,000 in 2015. The costs differ
significantly over the three-year period; therefore, it was agreed that the costs would be averaged For
this reason, $359,000 was included in MSS' 2013 and 2014 compensation and is included inthe ZO15
application.
HF&UConsultants LLC 6 November 11/2O14
Franchisors of Marin Sanitary Service Section III. MSS' Projection Methodology (Index Year)
Review of Marin Sanitary Service's 2015 Rate Application
Commercial Food to Energy
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
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 decided that costs would be averaged equally over a 3 -year
period, beginning in 2013. The 2013 rate setting process included $228,000 and this inclusion will
continue until the next detailed cost review for the 2016 rates.
MSS calculated its 2015 profit by applying the agreed-upon 90.5% pre-tax operating ratio to its 2015
total projected expenses that are eligible for profit.
MSS'Calculated Rate Adjustment
MSS calculated the 2015 Rate Adjustment to be 7.88%. 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 11, 2014
Franchisors of Marin Sanitary Service Section IV. Proposed Adjustments
Review of Marin Sanitary Service's 2015 Rate Application
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
1'.1 Total Expenses for Current Operations
12 Revenue Requirement for Current Services
Projected Revenue (at current rates)
13 Route Revenues
4 Less: Franchise Fees
15 Less: Street Sweeping
16 Less: Refuse Vehicle Impact Fee
17 Add: Non -Regulated Revenues
18 Net Revenues (at current rates)
19 Total Surplus/ (Deficit) (Line 18 - Line 12)
20 Rate Impact (-Line 19 _ Line 18)
25,425,505 (870,094) 24,555,411
$ 25,425,505 $ (870,094) $ 24,555,411
27,213,206
MSS
Recommended
HF&H Adjusted
(72,000)
Application
Adjustments
Application
Expenses: Current MSS Operations
1. Wages
$ 7,281,268
$ (355,567)
$ 6,925,701
2 Benefits
3,683,127
(195,956)
3,487,171
3 Disposal Fees
3,944,222
(144,460)
3,799,762
4 Fuel & Oil
1,117,309
3,072
1,120,381
5 Maintenance Expense
1,429,058
-
1,429,058
6 Depreciation/Leases
2,081,708
6,535
2,088,243
Other Operating/G&A
3,188,760
(61,836)
3,126,924
8 Total Operating Expenses
22,725,452
(748,212)
21,977,240
8 Operating Profit
2,385,545
(78,542)
2,307,003
10 Interest Expense
314,508
(43,340)
271,168
1'.1 Total Expenses for Current Operations
12 Revenue Requirement for Current Services
Projected Revenue (at current rates)
13 Route Revenues
4 Less: Franchise Fees
15 Less: Street Sweeping
16 Less: Refuse Vehicle Impact Fee
17 Add: Non -Regulated Revenues
18 Net Revenues (at current rates)
19 Total Surplus/ (Deficit) (Line 18 - Line 12)
20 Rate Impact (-Line 19 _ Line 18)
25,425,505 (870,094) 24,555,411
$ 25,425,505 $ (870,094) $ 24,555,411
27,213,206
367,544 27,580,750
(2,676,622)
(42,800) (2,719,422)
(72,000)
(72,000)
(896,302)
(896,302)
23,568,282 324,744 23,893,026
$ (1,857,223) $ 1,194,838 $ (662,385)
7.88% 2.77%
HF&H Consultants, LLC 8 November 11, 2014
Franchisors of Marin Sanitary Service Section IV. Proposed Adjustments
Review of Marin
Sanitary Service's 2015 Rate Application
Adjustments 2014P,rqjected Expenses for Currentantis
Wages
Wages expense compensation for the years 2013, 2014, and projected 2015 included the 3 year phase-
in for the costs associated with the Operation Improvement Plan and the Food to Energy Program
described in Section III during the last detailed review for 2013 rates and increased annually by the
applicable Consumer Price Index for labor. For the 2015 rate review, we reviewed MSS' actual costs for
the first 2 years of the programs and propose adjustments to the wages compensation for expenses that
have not been incurred for the new programs.
HF&H recommends reducing wages expense by $355,567 due to the following (Table 5, Line 1):
• Reduce wages by $60,198 due to the net impact of delaying the F2E program until 2014. The F2E
program included costs for equipment depreciation, wages, and operating expenses with an
offset for reduced disposal costs. We backed out the program allowance for depreciation,
operating expenses, and the disposal impact in the proposed 2015 rate adjustment.
• Reduce wages by $295,369 due to delaying the hire of the Accounting / Controller position for
the Operation Improvement Plan. MSS received compensation for 2013 and 2014 rate years but
has been unable to locate a suitable candidate to fill the position. The 2015 cost for the
positions continues to be included in the proposed 2015 adjustment.
Benefits
HF&H recommends reducing benefits by a net of $195,956 due to the following (Table 5, Line 2):
• Reduce benefits, other than Workers' Compensation, by $2,195. The increase in such benefits
was limited to the annual average increase in the Employment Cost Index of 1.90%. MSS'
application included pension costs at the rate of 2.20% rather than the rate prescribed by the
agreed-upon Rate Index methodology; and,
• Reduce Workers' Compensation by $193,761 due to a decrease in workers compensation
insurance rates. MSS' application included a broker estimate at the time the application was
submitted for an expected 1% decrease versus the approved 2014 workers compensation
expense. The actual decrease based on the subsequent receipt of a guaranteed cost insurance
proposal is 18.78%.
Disposal Fees
HF&H recommends reducing MSS' projected disposal fees by $144,460 (Table 5, Line 3). MSS included
the full disposal cost from the 2014 approved rate application instead of just the 2014 portion of the
total cost as the basis to calculate the 2014 true -up estimate in the 2015 rate application resulting in an
over statement of projected disposal expense.
Fuel & Oil
HF&H recommends increasing MSS' projected Fuel & Oil costs by $3,072 (Table 5, Line 4) due to an
updated projected average per gallon fuel price. MSS application projected fuel cost based on the
HF&H Consultants, LLC 9 November 11, 2014
Franchisors of Marin Sanitary Service Section IV. Proposed Adjustments
Review of Marin Sanitary Service's 2015 Rate Application
actual year to date average per gallon for purchases through July 18, 2014. An updated price trend
based on actual invoices through September 5, 2014 resulted in an increase of $0.012 for rate year 2015
and a decrease of $0.001 for rate year 2014 projected rates per gallon.
Maintenance Expense
HF&H reviewed and does not recommend an adjustment to MSS' projected 2015 Maintenance Expense
(Table 5, Line 5).
Depreciation/ Leases
HF&H recommends increasing depreciation by $6,535 due to the following (Table 5, Line 6):
• Reduce depreciation by $7,065 for debris box assets included in the Franchisors Group asset
base; and,
• Increase depreciation by $13,600 to correct the book value to the asset life for the Anderson
Drive building that is scheduled to be fully depreciated in 2015.
Other Operating/G&A
HF&H recommends reducing MSS' projected Other Operating / G&A by $61,836 to reflect the consulting
fees associated with the development of a new sustainable rate structure that were included in the
2014 rate adjustment and not expected to reoccur in 2015. (Table 5, Line 7).
Operating Profit
HF&H recommends reducing MSS' projected operating profit by $78,542 (Table 5, Line 9), resulting from
the decreases in operating costs described above.
Interest Expense
HF&H recommends reducing MSS' projected interest expense by $43,340 due to the following (Table 5,
Line 10),
• Reduce interest expense by $33,365 for disallowed interest on a related party working capital
loan; and,
Reduce interest expense by $9,975 for projected interest expense on 2014 equipment
purchases that were not complete prior to the 2015 rate application submission. In calculating
the 2015 interest expense, MSS reversed the estimated interest expense on these assets at a
lower interest rate than initially projected.
Adjustments to ProjeLted Revenue at Current Rates
HF&H recommends increasing revenue net of franchise fees by $324,744 due to the following (Table 5,
Line 18):
MSS' rate application included, as a reduction to 2013 revenue, the annual F2E and Operation
Improvement costs that were already factored into the revenue requirement used to calculate
the 3 year average forecast achievement percentage. After removing these costs, the forecast
W.
HF&H Co .. ...�
Consultants, LLC 10 November 11, 2014
Franchisors of Marin Sanitary Service Section IV. Proposed Adjustments
Review ofMarin Sanitary Service's 2O15Rate Application
achievement increased from 9O.O4%hz99.6996corresponding to an increase in net revenue of
$211,656.
MSS' rate application did not include the portion of the 2014 rate adjustments for the Ross
Valley South and Marin County service areas that were delayed until July 1, 3014. In order to
calculate the 2015 rate increase, we included the full amount of the increase as if it was
effective on January 1, 2014. The effects to the County of the delayed increase and its 2014 rate
consolidation project will be considered separate from the overall Franchisors 2015 rate
application process.
Adjustments to Net Recyclable Revenue Reserve
During 2012, the Franchisors and MSS agreed to share the net revenues from the processing of
recyclable materials collected fromthe 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 onetime
costs of future diversion programs. As reflected in Table 6, the reserve amount decreased $47,305 to
$1OO,Z49.The decrease in the reserve is due to an increase in processing costs per ton ($188.84 in 2013
vs. $173.42 in 2012) from a combination of inflation and costs being spread over fewer tons. Favorable
commodity pricing per ton ($177.54in2O13vs. 164.67inJO12)partially offset the cost increases.
/ame 0:ZIUmMary OTmet Keoyciao/eKevenueKeserve
Rate Year
Based on
Finandal Year
Net Addition
(Reduction)
to Reserve
2013
2011
$ 232,707
2015
2013
$ (47,305
Reserve Balance
$ 100,249
The next update tothe reserve will becompleted aspart cf the 2U16rate application process and will be
based upon 2014 calendar year results. Should the net positive value in the reserve exceed S250,000,
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 u negative $250,000, the City or the Contractor may request a review of the actual costs and
revenues ofproviding the service at which time the Franchisors Group and Contractor have agreed to
meet and confer tmdetermine areasonable remedy tothe Contractor.
HF&H[onsultanbs, LL[ 11 November 11, 2014
Franchisors of Marin Sanitary Service Section V. Rate Adjustment
Review of Marin Sanitary Service's 2015 Rate Application
SECTION V. RATE ADJUSTMENT
Rate A4justrnent
Based on a revenue requirement of $24,555,411 (Table 5, Line 12) and projected net revenues of
$23,893,026 (Table 5, Line 18) for the calendar year 2015 resulting from our recommended adjustments
to MSS' application, a 2.77% rate adjustment has been calculated, effective January 1, 2015.This rate
increase of 2.77%, results primarily from:
table 7: Rate Adjustment Components
2015 Component Percentages
Wages
(0.83%)
Benefits (including workers comp)
(0.65%)
Fuel & Oil
0.61%
Disposal
1.31%
Depreciation
1.58%
Other Operating Costs*
(0.090/0)
Subtotal Operations
1.93%
Revenue Shortfall net of Franchise Fees
0.84%
Total Rate Adjustment 2.77%
* Includes other vehicle -related costs, profit, general & administrative
costs (e.g., public education, customer service, etc.) .
Wages — (0.83%)
As shown in Table 7, the wages expense component favorably contributed 0.83% of the overall
recommended 2.77% rate adjustment. The decrease is primarily attributable to unfilled positions related
to the Operation Improvement Plan approved in 2013 through 2015 rates.
Benefits — (0.65%)
As shown in Table 7, the wages expense component favorably contributed 0.65% of the overall
recommended 2.77% rate adjustment. The decrease is primarily attributable to an 18.78% decrease in
the 2015 premiums for Workers Compensation insurance cost.
HF&H Consultants, LLC 12 November 11, 2014
Franchisors of Marin Sanitary Service Section V. Rate Adjustment
Review of Marin Sanitary Service's 2015 Rate Application
Fuel and Oil — 0.61%
As shown in Table 7, the fuel expense component contributed 0.61% of the overall recommended 2.77%
rate adjustment. The increase is primarily resulting from the current impact of a favorable fuel expense
adjustment during the 2014 rate setting process.
Disposal —1.31%
As shown in Table 7, the disposal expense contributed 1.31% to the overall recommended 2.77% rate
adjustment. The increase is a result of the annual change in disposal cost per ton (by the applicable
Consumer Price Index or contract price) and a favorable disposal adjustment from the 2014 rate setting
process that is not reoccurring in the 2015 rate setting.
Depreciation —1.58%
As shown in Table 7, the depreciation expense component contributed 1.58% of the overall
recommended 2.77% rate adjustment. The increase is primarily due to additional depreciation for
replacement vehicles, building remodel and retrofit, and increased capital expenditures for equipment
repairs and maintenance.
Other Operating Expenses — (0.09)%
As shown in Table 7, the other expenses component combined favorably contributed 0.09% of the
overall recommended 2.77% rate adjustment.
Revenue — 0.84%
As shown in Table 7, the revenue shortfall contributed 0.84% of the overall recommended 2.77% rate
adjustment.
Sumey of Comparable
Attachment 3 shows the results of HF&H's survey of solid waste rates as of September 2014 for
jurisdictions located throughout the Bay Area. For the purpose of comparing the Franchisors' rates to
other jurisdictions, we have applied the recommended 2.77% rate increase to the current Franchisors
rates.
The Franchisors' residential rate for a 32 -gallon container (the most frequent residential service level)
ranges from $28.02 (LGVSD) to $35.21 (Larkspur) after applying the recommended rate adjustment. The
survey shows the Franchisors' average residential rate for 32 -gallon service is $31.96. This rate
compares favorably to the other Marin County jurisdictions average of $33.89. Of the 10 Marin County
jurisdictions, 7 of the jurisdictions' 32 -gallon container rates are higher than the Franchisors' average
and 3 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 rate for a 3 cubic yard bin serviced once per week ranges from $393.59
(Ross) to $448.95 (Larkspur). The average rate for the Franchisors is $419.19, which is in the lower range
compared to the other 5 Marin County jurisdictions that offer this level of service. Three jurisdictions
HF&H Consultants, LLC 13 November 11, 2014
Franchisors of Marin Sanitary Service Section V. Rate Adjustment
Review cfMarin Sanitary Service's 2O15Rate Application
have higher rates and I jurisdictions have lower rates. Attachment 5 compares the Franchisors'
commercial nates for a 3 cubic yard bin serviced once per week to the average Marin County rate and all
other jurisdictions' average rate for similar service levels.
While the recommended rates compare favorably tothose 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;
Z The terrain in which the service is performed;
I Disposal costs;
4. Rate structures; and,
5. Governmental fees (e.g., franchise fees, vehicle impact fees, etc).
HF&H Consultants, LLC 14 November 11/2O14
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Attachment 3
r
, l cu yd conta l ners not ava l l abi e. Rales ref]ecled here a re for 1.5 cu. yds.
r CIry has wet/dry commerclaI col l eel i on rates are for wet comrrarcial rna terl a is
'largest resldenlial can Is 45 gallon
I Smallest Commercial Bin Is 2yd,
'Largestcommerclal bin Is 2yards.
s One cubic yard bin no longer offerred to new customers.
' Rate for 1, 2, &3 30 gallon cans in lieu of 60 and 90 gallon cans.
a Berkeley's Dlslrlct 3 pays a fire surcharge on residential rates.
s OL5D L2 district doesn't provide recycling services to residents. Recycling rates are Included In rate for Ll & L2.
" Includes bin rental fee
Bay Area. Rate Survey
IYD Bln
1YD Bin 3YD Bin
3YD
Bin
Jurisdiction
County
20 Galion
30-35GAI.
60.64Gal. 90-96Ga1.
1>t week
3w week Ie week
3w week
Rec. Freq.
YW Freq.
Sort
CI ty of Ala meda
Alameda
5
28.46
5 3592
5 59.02 5
82.43
5 136.82
5 418.66 5
410.47
5
1256.00
Weekly
weekly
;die le
CityofA]bany
Alameda
S
35.92
S 40.23
S 69.53
98.82
160.30
480.90
480.90
1442.70
Weekly
Weekly
Sin le
City of Berkeley District 18, 2
Alameda
S
23.10
5 36.93
$ 73.83 5
110.71
S 147.00
v 414.2,p S
406.85
S
1,208.45
Weekly
weekly
D 4 Irgw.a i'rs
City of Berkeley Dlstrict3a
Alameda
24.13
S 38.50
S 76.96 5
115.43
147.00
414.21 $
406.85
1208.45
Weekly
We,ekly
Dualsiream
CItyofDubIIn
Alameda
NA
S 21.10
S 38.75 5
56.40
5 102.35
5
Weekly...........................
CityofEn,eryville
Alameda
5
10.67
5 17.67
S 35.32 S
52.99
5 105.20....5
..........................
315.60 S
315.60
5
946.80
Weekly
Weekl
Si"51.
Ci of Frenwnt
Alameda
S
29.89
5 3051
$ 33.39 S
4893
S 86.95
5 250.10 S
195.45
S
575.58
Weekly
Weekly
91n lc
CI of Llvernaaee
_ _....,�.. .. ............
Alameda .e.....,-...
19.36
28.76
53.34
86.21
116.72
$ 38416
350.16
1115.62
Weekl
WeeklySingle.
CIN of Newark..,,
Alameda
5
24.93
S 27.72
49.09
70.44
112.31
$ 350.41
297.13
S
810.32
Weekly
Weekly
Sinie
City of Oakland
Alameda
S
22.21
5 29.80
$ 64.98 $
100.11
S 13988
S 445.19 S
255.92
5
783.71
Weekly
Weekly
sin le,
City of Piedmonts
Alameda
5
49.45
S 51.88
5 60.57 5
70.97
$ 16269
5 458.61 NA
NA
We,elkly
Weekly
Sia le
City ofPleasanton
Alameda
N/A
$ 3059
N/A 5
36.30
5 145.51
5 380.81 5
415.54
5
1121.44
Weekly
Weekly
Dirty ra'IF;F
City of San Leandro
Alameda
S
20.24
S 25.22
5 41.98 5
58.72
5 110.58
5 33430 S
334.30
5
1002.90
Weekly
Weekly
Single
City of Union City
Alameda
5
24.79
$ 3099
5 62.03 S
93.03
S 12816
5 353.98 5
335.85
$
915.30
Weekly
Weekly
"rl rl e
23.80
36.92
$ 64.11
91.33
261.83
5 785.60 5
696.78
$
195278
' Weekly
Weekly
elle
Castro Valley Sanitary District
Alameda
Oro Loma Sanitary District IILI)°
Alameda
5
12.62
$ 20.59
5 36.62 $
52.61
5 125.60
S 292.91 $
306 35
$
8119 70
Bi -week)
We-ekly
Single
5
10.87
S 18.84
5 34.87 5
50.86
S 125.60
S 292.91 5
306.35
5
6CIU 2L
Bbwaekl
Week)
single
Oro Loma Sanitary District IL2Q
Alameda
Oro LOmA Sa nita¢yu vsI µG ,11.71. ,Alameda
S
13.85
5 23.15
$ 41.64 S
60.19
S_14 „745
3M 77 ,,_-
,354.36,$
93491
B - M ly-
Wel l,p
mm Sngid5 m,
C!,ty,QfRichmind
Contra Cr e,a
S
2556
5_ -,31.17$
59.37 $
88 43
$ 20460
117.16
461,94
S _126759
B„wAekVy
5,weekly
SIVe
C(ty.fSan Pablo
Contra Costa
S
22.36
S 27.20
$ 52.78
79.10
5 206.04
519.37 $
471.00
128765
BikweLkl y
BI -weekly
Single
City of EI Cerrl[o''
Contra Costa
5
30.29
5 40.39
5 80.79
N/A
S 266.72
$ 738.10
N/A
N/A
We,+nkl
weekly
51n Ic
City Hercules
{Contra festa
-
S
27.90
5 3 2.7 6
-___
5 S7J7. $
83.52
5 234.2.6 P,5,2 Y. 5
531!63
S _3,44
�'L]
R-w-kly
49-weeldF
Single.
t _ __11_1_1. _ __
CI of Pinole ».ti
.Contra frlcta
26.42
31.28
SS.66
-��..-.
80 77
n32,45
.,, -,.. -_,..
M17 22 S
..m-.--_,,.-1111__
15� 97
_..-.r.,...�..r-11_,11...-_
l A6S 94
BI
.. �-or MIlry ._..._Blliwewekly..�
.,. Sl�lw� �,-...
Unlncor .-WestContra Costa
.Contra r,,rta
5,
25.50
31.01
5 59.42 S
88.50
5 197.66
5 496.25 5
441.91,
5
1 201.06
Bi-weekl
BI -week)
Sln le
Town of Fairfax
Marin
5
2426
S 2909 $ 58.18 $
87.27
S 171.00
<5 405.05 5
400.95
1,049,45
Weekly
Weekly
Dual stream
RVSDN Oak Manorl
Marin
21.80
S 34,87
69.72
104.50
$ .187.04
561.21 $
561.21
5
1,683.62
Weekly
Weekly
Dual stream
RVSD-N
Marin
5
2275
$ 36.40 , 72.77 $
109.08
_5 187,04
y 5,51.21 S
$61.21
$
1.683.62
Weekly
Weekly _Dual
stream
Townof5an Anselmor
Marin
$
25 80
$ 33.71
5 67,47 5
301.21
N/A
N/A 5
553.23
$
1,65978
Weefcl^
Worrk9lr _.
Duml xtr am ,'..
Cl,, of Csolvedeio'
'.. Marin
34.64
3954
$ 63.23
100.77
$ 197.64
$ ip4S.96 WA
..
N/A
Ci:,, of Novato
...
Marin
-.
11 S8
1111.
18.52..
1111.
$. 37-02
55,55
1111.
N7A
... N/A $,
.
24132
_
$
59878
F
1Aina.aBs.,..
'Ne.._..,.,...�.., ekl^,1
Single,,,,_,_,',..
City of Sausailtoa'
Marin
NA
$ 36.90
1111
73.80 5
110,70
5 14551
4#773 NIA
N/A
Weekly
Bl-weelkly
Single
Town of Tiburon' _
Marin
5
3355
S „37.85
S 6892 S
99.46
5 180.10
491.56
N/A
N/A
Weekly
Weekly
Single
Tom of Corte Madny w w
Marin
J___27,l5_j
31.93 S 64.02
96.12
5 14933 S 402.94
N/A
N/A
M1,„� kip
weekly m
.. Sllvgle ,,,,,'
CI of Pdlll Vall .�..
�.
Marin
..,.�...�, .,.......
$
38.00
$ 39.70
$ 66.29 2 92.83
�.__
5 86
_1'175
1.
473 25
N A
N/A
kV
Cit ,f San Rafael WLLLL .,.,
Marin es
$
21.24
5 32.O'S
5 64.11 5
96.16
n'd/A,
N/A 5
395.95
5
1,123.89
We®kl�r.
weekly
Dual stream
Las Gallinas • County
Marin
$
23 81
a "02
5 1,603 Se
84 US
r 200S8
5 60230 $
405 87
5
1,13283Weekly
weekly
Dual stream
City of Larks era
Marin
$
105 6::
S & S4,
S 670.44 $
448,95
5
1,177 t8
�. Week
Wee
Owalstrearn
Town of Ross.... 1111.
Mar in _1212,,
8,,.
26Ps , 30 6's S [ 1 ,7
S
„_......_
,.�.�
oda''
_ WA $ _393.59
5
1,18064
Weekly
wee4dy
Dualxtream i
Coen jRV$d3fr 111-1,1122 ...
Masjat
S
169'✓
....93.2.2....5
ka97t8„
10T,71
MB ,9
5 -,5(11241 .S
.Ai,3c3B._.
_,..3
.98,02
�W,Ftpkl'L ...,_,M7V
v�69r.1y
ua1Stream
..-�._-P,-..�. -
.County - Masrin Frarrechfisors Group
.
.Marto
�ir
19-59
$ Tw-6'0
,' 5
S bl Bd,
ill Rl!
-, ...
_ PW/A
N/A 5
437.40
5
114116
Wee M1y
m..,.
ini,6.e 8.413 .. ,_Squat
stream '...
City ofCam bell,
'Santa Clara
5
18.37
5 23,97
S 47.95
71.92
$ 119.86
S 36301 S
239,73
_S
72601,
Weekly
Wri6dy
Single
Weekly
Weekly
Single
City WCu rtino'
Santa Clara
N/A S 2293 S 45.86 $ 68.78$
13972 5 40l 19 5 21396 5 6418
.. ..._..,,. _ _. ........
Ci of Los Altos
Santa Clara
5
2844
5 30.62
$ 61.25 $
91.B7
5 12016
, 2111.
S 360.48 $
360.48
$
108147
Weekly
Weekty
Single
Ci o Mono ^Sereno „ ,,, ..
Santa C ora
21.50
��.. 2805
56 10
_. @ Oe y, _
84 .16
w,
5 36531 $ 500,71 5 33061
m�. y ,._.__,m... .e,........w, ..�. 1112
100141
Weekly
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r CIry has wet/dry commerclaI col l eel i on rates are for wet comrrarcial rna terl a is
'largest resldenlial can Is 45 gallon
I Smallest Commercial Bin Is 2yd,
'Largestcommerclal bin Is 2yards.
s One cubic yard bin no longer offerred to new customers.
' Rate for 1, 2, &3 30 gallon cans in lieu of 60 and 90 gallon cans.
a Berkeley's Dlslrlct 3 pays a fire surcharge on residential rates.
s OL5D L2 district doesn't provide recycling services to residents. Recycling rates are Included In rate for Ll & L2.
" Includes bin rental fee
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?#49ala*
CONSERVATION -- OUR EARTH, OUR MISSION, OUR JOB
ms, Fr"anchisors' GrOL 1P
2013 Annual Report
January 1, 2013 -December 31, 2013
*1 Franchisors'Group Annual Report: 2013 0-11,11,
Tatfle of Contents
)1,1;m",!;� I kim, sc y
Executivc' Surnmary
2
Background on Diversion Calculations
2
Operational limprovernent Han
3
PFiase j-: Januziry-June 2013
3
Phase 2: June-Dccernber -2013
3
Phase 3: January-Dece rnl)pr -20-114
3
Phase i. and 2 Results:
3
Phase 3 plans
4
Zero Waste Prograrns
Comnwnity Outreach
4
4R Planet School Prograrns, and "rours
4
Enhanced Corm-nercial Recycling
5
AB 343.
5
Multifarn!Hy Cornpost Not
6
Foodto Energy
6
ResideritialOrc janiJ cs
6
Ffousel,-ioid Hazardous Waste
7'
MateruaJS, r(,,)Ilected and F-Irocessed
8
Service Accounts by Sector
Residential Giarbage
9
Coiriiri-iercial/Apa-t(iierit G, arhage (Cart Service)
9
Commercial/Apartment Garbage (Bin/Compactor Service)
9
Reports of Injuries and Daimage to Prop e.rty
10
Average Montffly Market Salvage Values per Ton
11
Appendices
Juris(fictional Detad5
14
Outreach Exarnples
16
I* I'm I wd CII Mi i OU, u1 f " C'': 0°n[ t p P a g e
Fra nchisors' Group Annual Report 201,3
a
i;.r�,,,,eci,,p�i:'v ',3urP"irr"ary
Marin Sanitary Service (MSS) continuously puts forth its best effort to help the members of the Franchisors' Group
(FG) in meeting its Zero Waste and greenhouse gas reduction goals. In 2012, an amendment was made to the FG
agreements that included the provision for a comprehensive annual report to describe progress and achievements
in meeting zero 'waste goals through programs and activities approved by the Franchisors' Group to enhance
progress towards zero waste. This amendment was implemented in 2013.
The Operational Improvement Plan and Zero Waste Programs detailed in this report illustrate MSS's commitment to
diverting resources from the landfill. Progress is being made to make routes more efficient, streamline collection
services, and to make technology enhancements that will improve data collection for the purposes of monitoring
and detailed reporting. The County has a Zero Waste goal to divert 94% of all materials from the landfill by 2025.
Each year or two, MSS adds new programs and reviews and enhances ongoing programs. Community Outreach and
Education is essential to meeting diversion goals. For this reason, MSS now has a department staffed by Outreach
Coordinators and an Education Specialist dedicated to instructing customers and the public on the importance of
source reduction, reuse, recycling and composting.
In 2010, food scraps collection was added to yard waste and is now a weekly curbside collection program. All
Residential customers are offered green cart for these materials. In 2011, MSS revamped its tours and school
outreach services and rebranded as the 413 Planet School Programs. In 2012, AB 341, Mandatory Commercial
Recycling became law. MSS has always offered recycling to all commercial customers but hired an outreach
coordinator to enhance recycling efforts in businesses and multifamily apartment buildings. The most recent
addition to the Zero Waste Programs is Commercial Food to Energy (F2E), which rolled out in 2013 to 30 grocery
stores, restaurants and catering companies (24 in the Franchisors' Group). In 2014, Commercial Composting will be
piloted in Apartments and Commercial Businesses that do not qualify for the F2E program because the organics they
produce is more similar to that produced by residential customers (yard waste, food soiled paper and small amounts
of food waste).
In 2013, overall tonnage collected from residential curbside garbage decreased by 24% and the number of residential
customers subscribing to 20 -gallon gray garbage cart service has increased by 28%. The amount of commercial
recycling processed through the Marin Resource Recovery Center has increased 43%. Material collection and
processing resulted in an increase in diversion overall increase of 8.6% (42.9% in 2012 to 51.5% in 2013).
The following 13 pages, detail the services and programs, materials collected and processed, injury and accidents,
and salvage commodity prices for the 2012 and 2013. Service subscription details are provided from 2011-2013.
The 2014 annual report will show 3 years of comparison for service levels and tonnage.
�,v: eyroond on Diversion Calculations
Jurisdictional diversion rates are calculated based on a disposal -based indicator that is a per capita disposal rate
expressed as pounds per person per day (PPD). This disposal rate uses two factors: a jurisdiction's population and
its disposal tonnage, as reported by disposal facilities. The jurisdictional diversion rate focuses on a list of programs
f1e,cl,p9ii riira�i P�arus ,-a�r9ev) that includes but is not limited to recycling, composting,
household hazardous waste, and other source reduction programs such as purchasing policies, xeriscaping, and
material exchange programs (thrift shops, yard sales, reuse stores). The disposal target for each jurisdiction or
regional agency was calculated by averaging the waste generation over a period of four years (2003, 2004, 2005,
and 2006), which was determined by CalRecycle to be the equivalency of the 50% AB 939 landfill diversion rate. The
disposal target for the Marin County was calculated to be 7.6 PPD. For 2013, the Marin County Jurisdictional
Diversion rate was 75% with a population disposal of 3.8 PPD, 50% better than the disposal target.
Prink.�rIIsj5 Pu,,f ifrIi,!,, i,J.,r�WW 21Pap,e
Franchisors'Group Annual Report 0 -
The ton -per -ton recycling and disposal rates of the various haulers in Marin, including Marin Sanitary Service, all
contribute to the 75% diversion rate. For the purpose of this report, only tonnages for materials collected and
processed under the Franchise Agreements are used. The Franchised Programs are discussed under Zero Waste
Programs. Other tonnages from residential and commercial self -hauling, construction & demolition debris box
rentals, and a host of other non -franchised programs within the County are not accounted for in this annual report
but are reflected in the Jurisdictional diversion rate that is reported by MSS to the Marin Hazardous and Solid
Waste Joint Powers Authority (JPA), who in turn reports this tonnage information to the State of California.
Op erationM Ilrnpir ~mrernent Nan
In 2012, MSS underwent an extensive audit of its collection operations. From the results of the audit, an Operational
Improvement Plan was developed. This ongoing plan will lead to staffing and operational improvements, technology
changes and upgrades to the existing sorting infrastructure, and enhanced outreach programs with the overall goal
of efficiently increasing diversion rates in a cost effective manner to keep rates affordable to the MSS rate base. In
2013, MSS began implementing this efficiency -based plan. Highlights of this plan include:
P( asp !i: January.JnHICI 201',''j
❑ Implementation of routing efficiencies including more automated routes and route consolidations.
❑ Replacement of Rear loading trucks with more efficient automated side loaders.
❑ Reduction of routes while sustaining high service levels.
❑ Route supervision and auditing to retrieve lost revenues.
I":ahMe 2!JC6ne"Decernbier 2013
❑ Addition of diversion service routes to accommodate increased mandatory commercial recycling and
compliance with AB 341.
❑ Combine multifamily and residential recycling routes for increased efficiency.
i����i�S(x 3 J$ll�l�V'uw4A� �:a.c���Upm.beV 2')1-
0 Continue audits of commercial garbage and recycling routes to increase efficiency.
❑ Perform waste audits of commercial garbage accounts to identify increased diversion potential.
❑ Participation set -out rates for residential recycling and composting as part of the Waste Characterization
Study and participation county analysis to be performed by CalRecovery in 2014. This study was last
performed in 2008.
Phase't and .1 Resullrs�
Routing efficiencies: In 2013, four drivers and a Saturday route were eliminated which resulted in a savings of 213
driver hours per week (11, 076 hours per year). The consolidation of garbage routes resulted in a decreased number
of drivers needed for the routes from 54 drivers in 2012 to 48 drivers in 2013. Additional diversion services routes
were added with the staff freed up from the garbage route consolidation. At the end of 2013, a cart delivery and
removal route was established in addition to a 3rd front loader cardboard route and a food waste/recycling route.
Distance Audits: For carts not placed at the curb, there is an additional fee for collection (distance fees). After
auditing the routes, customers were identified that had been receiving distance service at no charge. The distance
was measured and a letter was sent to each customer giving them the option of either paying for the distance service
or bringing the cart to the curb. This resulted in the retrieval of lost revenue. The following Franchise agreements
have rates for distance.
❑ Ross: 9 accounts re -measured for distance.
❑ San Rafael: 54 accounts re -measured for distance.
❑ Larkspur: 87 accounts re -measured for distance.
40 ri il' m Itn,; N I.cn nnnr .r.',i I � ,Ijw° j' 31 P age
Phase 3 plains
Commercial audits of all services will continue in 2014. MSS will establish a formal summer student "experiential
learning" program with local high schools. Students will conduct set -out participation rates for residential organics
and recycling. These will be done annually.
Multifamily
� l
Recycling (AB LY l
8t�1r�r�tkq �� oip
Food to Ener
341)and
Composting Pilot
t:snu'°'mnmunity a u.wtu each and Educlaltar°)n
At Marin Sanitary Service, community involvement through education, outreach and alliance building is our greatest
passion and supports our ultimate goals of resource conservation and diversion of materials from the landfill. Our
duty is to engage and educate our community in how they too can be part of the solution. Education is the most
important aspect in reaching our goal of Zero Waste. Community Outreach and Education is multifaceted and
includes: community meetings, community events, presentations, and print and online communication pieces. There
were 58 print and online communication pieces distributed by direct mail, print newspapers, and online
newspapers, and on the nn s website. In addition, there were jb public events (Figure
35
30
25
20
15
10
5
0
San Rafael
■ Ross Valley South
Ross
Larkspur
Las Gallinas Valley Sanitary District
o�Ey County of Marin
-,,A �`����uD AI I Areas
�\\` J� .,A
0
P
n'ugw e r,: lASS i u a nrVu soars' CW U117 ClUtreach avid &'ornmwuwcafhr° ns rt°')r 201:4
4R PlanetSchoold Programarnd'Tr.rurs
At MSS, our goal is to educate, equip and empower school districts, individual schools and/or classrooms to develop
comprehensive waste reduction and recycling plans. At the start of the school year, every school was hand delivered
information on our 411 Planet School Program, tours, and the services we offer including the composting program.
Franchisors"• EN Annual Report
Figure 2 shows the types of outreach that were performed in 2013. MSS is the only hauler with an Education
Specialist dedicated to Outreach in the all public and private schools. The following services are provided at no cost:
❑ Onsite evaluation of recycling needs.
❑ Waste audits to help schools know what recyclables you are still throwing in the trash.
❑ Signage, stickers, and curbside containers to help with source separation.
❑ Educational lessons and assemblies on the 4R's.
❑ Source separation trainings.
❑ Green team guidance on waste reduction.
❑ Educational tours of MSS recycling facilities.
❑ Lending library of resources: books, DVDs, binders with lesson plans that meet California curriculum
standards.
❑ Online resources: sample letters, lesson ideas, recycling procedures and more.
250.
192
200
.....m n_ _ _
_. _
150
.. ........
99
89
100
%��
i;'r Outreach by Type
0
.._..,...�
.. r,.,,M��.
Tours Events
Contacts
Site visits
(phone/email)
rig u re 2: PA55 5chwoaU Ou ueaaahr 701
Enhanced Corrirnerc 0 Recyckng
IB 34 1c:O:urMHi 111rCtE
Mandatory Commercial Recycling (AB 341) has been in effect since July 2012. This law calls for recycling 75 percent
of California's solid waste by 2020. This is a significant increase above the 50 -percent, statewide recycling mandate
established in AB 939, which was passed in 1989 and has been the primary driving force for improving recycling in
California. Approximately 60% of materials disposed of in landfills are from the commercial sector.
It is important to note that AB 341 is a continuation of the effort by the state to reduce greenhouse -gas (GHG)
emissions, as required by AB 32, which became law in 2006. Simply stated, recycling reduces GHG emissions, and
through the implementation of AB 341 will make a significant reduction in these emissions.
Cal -Recycle met with MSS and the jurisdictions we serve to assess how outreach, education and monitoring is taking
place in Marin County. They ensured us that we are way ahead of the curve at getting compliance from these
customers to recycle. 94% of all commercial and apartment customers were in compliance at the end of 2013.
Educating businesses about recycling is a dynamic and ongoing process. MSS has two Commercial Recycling
Coordinators working with businesses and apartment buildings in addition to a full time schools coordinator. New
businesses and employees are educated about recycling requirements and opportunities. Existing businesses and
their employees are monitored and encouraged to divert even more resources from the landfill.
Part of the monitoring process included 2,123 driver waste audits performed on commercial and MF accounts in
2013. Drivers visually audited carts to provide a percentage of recyclable materials in the waste stream. Accounts
40 h mi cd rql ':i ° ! "I m ulm ire` �'' .'nt 5 1 P a g e
with high percentage of recyclables and food waste were referred to Outreach for waste stream assessments and
education planning. Customers who have been identified to be non-compliant with the law receive a phone call,
followed by a letter that is followed by an onsite waste assessment. If the customer is still non-compliant after 90
days, they are referred to the City, Town, or County jurisdiction for follow-up. Collaboration between the public and
MSS is key to the success of this law. At the end of 2013, 3% (Table 1) of the total Commercial Business and 14%
(Table 2) of the total Multifamily Apartments were non-compliant. Jurisdictional details are at the end of this report.
Tabe 1: Comm rd ai tbxa°aNu°aaaro%s say w Nona on'lallaant wR ai 4B 341
341NN:
341NR:
341QN: 341QR:
Grand Total
MSS Franchisors'
341NN:
341NR:
341QN;
Group
Not Required:
Not Required:
Qualifies: INar Qualifies:
No Recycling
Recycles
cornpllar�t Recycles
Not Required:
Commercial Total
Qualifies,- NOT
Qualifies:
_rW......................._....
2013 Year End
371
1036
5'.2 292
1751
Tabe 1: Comm rd ai tbxa°aNu°aaaro%s say w Nona on'lallaant wR ai 4B 341
T abk t; Nluffifamkv AparUncmt nn on C,�)imj�uN'sn; nt v0th Al341
t/tu.nlflfa nOy Con'nPosN nfg pHot
In 2013, composting was piloted at one 160 unit Home Owners Association (HOA) in San Rafael. Outreach was
provided to each tenant and included a Compost Brochure, a letter inviting them to participate in the program, and
a sticker to place on their interior collection container. The results were very positive. Drivers reported very little
contamination. For 2014, MSS will pilot this program at 25-30 Multifamily Apartments and HOAs to evaluate
contamination levels, outreach needs, collection frequencies, and routing efficiencies.
Food to Energy
The end of 2013 marked the completion of the first phase of the Food to Energy program. The pilot was a tremendous
success enrolling a total of 30 Marin grocery stores, restaurants, and catering companies, 24 of which are in the
Franchisors' Group.
The food waste tonnages collected are exceeding expectations. In 2013, 218.89 tons of food waste was diverted
from the landfill. This was an average of 2-3 tons per day with only 30 customers. With the program fully
implemented and all 250 customers enrolled, it is expected to divert well over the anticipated 10-15 tons per day.
Due to the necessary processing machinery for anaerobic digestion, the feedstock collected must be free of
contaminants. MSS provides in-depth education and training for all F2E customers to ensure that the food waste to
be delivered to CMSA is contaminant free even before it gets to the pre-processing facility at MSS. This training
includes onsite talks and demonstrations, videos, signage, and a training manual. Initially, MSS is only allowing pre -
consumer food waste to further help in contamination reduction. Once commercial customers are adept at sorting
pre -consumer waste, MSS will assess the potential to include post -consumer waste for the collection of as well.
Nies: lentiu"fl Organics
The Residential Organics Program was implemented in March 2010 and by the end of 2011 all MSS jurisdictions were
participating in the program. All new Residential Customers are offered a 64 -gallon green cart for the collection of
yard waste and food waste. Additional carts are available to rent for a small monthly fee. Drivers report participation
is increasing but is difficult to measure. The first formal participation audit was performed in 2012. Auditors lifted
the lids of every green cart set out by customers over the course of a week and recorded the number of carts set-
ini"'n ,f 'orWW (� 0 P a g e
341NN:
341NR:
341QN;
341QR:
Grand Total
MSS Franchisors'
Group
Not Required:
Not Required:
Qualifies,- NOT
Qualifies:
No Recycling
Recycles
compliant
Recycles
partment Total
013 year end
34
139
95
428
696
T abk t; Nluffifamkv AparUncmt nn on C,�)imj�uN'sn; nt v0th Al341
t/tu.nlflfa nOy Con'nPosN nfg pHot
In 2013, composting was piloted at one 160 unit Home Owners Association (HOA) in San Rafael. Outreach was
provided to each tenant and included a Compost Brochure, a letter inviting them to participate in the program, and
a sticker to place on their interior collection container. The results were very positive. Drivers reported very little
contamination. For 2014, MSS will pilot this program at 25-30 Multifamily Apartments and HOAs to evaluate
contamination levels, outreach needs, collection frequencies, and routing efficiencies.
Food to Energy
The end of 2013 marked the completion of the first phase of the Food to Energy program. The pilot was a tremendous
success enrolling a total of 30 Marin grocery stores, restaurants, and catering companies, 24 of which are in the
Franchisors' Group.
The food waste tonnages collected are exceeding expectations. In 2013, 218.89 tons of food waste was diverted
from the landfill. This was an average of 2-3 tons per day with only 30 customers. With the program fully
implemented and all 250 customers enrolled, it is expected to divert well over the anticipated 10-15 tons per day.
Due to the necessary processing machinery for anaerobic digestion, the feedstock collected must be free of
contaminants. MSS provides in-depth education and training for all F2E customers to ensure that the food waste to
be delivered to CMSA is contaminant free even before it gets to the pre-processing facility at MSS. This training
includes onsite talks and demonstrations, videos, signage, and a training manual. Initially, MSS is only allowing pre -
consumer food waste to further help in contamination reduction. Once commercial customers are adept at sorting
pre -consumer waste, MSS will assess the potential to include post -consumer waste for the collection of as well.
Nies: lentiu"fl Organics
The Residential Organics Program was implemented in March 2010 and by the end of 2011 all MSS jurisdictions were
participating in the program. All new Residential Customers are offered a 64 -gallon green cart for the collection of
yard waste and food waste. Additional carts are available to rent for a small monthly fee. Drivers report participation
is increasing but is difficult to measure. The first formal participation audit was performed in 2012. Auditors lifted
the lids of every green cart set out by customers over the course of a week and recorded the number of carts set-
ini"'n ,f 'orWW (� 0 P a g e
1 r ' ;EM r o gyp: Annual" M2013 0
out that had yard waste only and food scraps mixed with the yard waste. In 2012, the jurisdictional average
participation rate was 59% for yard waste and 23% for food waste. There was a slight decrease in yard waste
participation in 2013 (58%) and an increase in food waste participation (36%).
Outreach and education on how to participate and how to overcome the "ick" factor is ongoing. Every new Resident
receives a brochure on what can go in the green cart and how to conveniently get the food scraps to the green cart.
Billing inserts and the semi-annual newsletter always highlight the importance of diverting food scraps and yard
waste from the landfill. Information is handed out at all events and is available on the website as well. For 2014,
MSS will begin giving workshops on composting to Home Owners Associations, School Parent Teacher groups,
Church groups, and other community organizations to increase participation.
Flou seFe+M Hazardous Waste Drop-off and Curbside Collection IPro rare i(SR)
Though not an annual reporting requirement, we felt it was worthwhile to show the results of this important
diversion service. The Marin Household Hazardous Waste Facility tracks participants by city, town, and
unincorporated Marin. Ross Valley -South, County of Marin, and Las Gallinas Valley Sanitary District are grouped in
with other unincorporated areas south of Novato. In 2013, there were 14,075 Residential participants in the drop-
off program (Figure 3). Larkspur had 964 participants; Ross had 282 participants; San Rafael had 9,783 participants;
and Unincorporated Marin had 3,046 participants. The Curbside Collection Program was only offered in San Rafael
as a pilot program. There were only 13 participants for 2013. Figure 4, shows the Commercial participation for 2013.
Overall, there were 236 participants from San Rafael, Larkspur, Ross and Unincorporated Marin.
1600 .... .-....---.......- _ .. �.. �. .. „ �� ...,....
1400 .....-.�..m.ee. �.� ....���._ ...�... .........
1200 .....0
1000
Larkspur
800 1 1 p
600 �.��. �.. 1 ;..__d _. ,� Ross
San Rafael
400
200 id Unincorporated Marin County
TI
0m�
>acJIb `Ja�� �a`r PQk\ �a� >J�� >J\A J�3Jyti e��cOG-10
�ec eeec ce��ec
�o Oe
Figure D Ress denfiM Partid ants,'Q, tAHl1WF in 2013,l
'wn"'d (In ' " hl' i) _r uI �--J , OJ' "Il; J I P a g e
ill jj� i,,
. ...............
30
25
20
a Larkspur
15 . . . . ... . ..... . ... . ...... ...
Ross
10 4
San Rafael
5
T' On Unincorporated Marin County
0
A
. . ............... . . . ... ....
F:IgUre4: Cornmerciall Drop-off PwfldpanLs at Mffl-Wff un 2013
a
#:r rIn , , i'W I n WI'; 11 1 -k I � 8 � P a g e
�ranchisorsl
• yrRe�port2,013 ALJ
Materials diverted through our residential and commercial curbside programs include glass bottles and jars;
aluminum and bi-metal cans, aluminum foil, and containers; plastic bottles and containers #1-7; cardboard; mixed
paper; paperboard; and newsprint; and organics including yard waste and food waste where applicable. The mix of
materials in the recycling stream has changed significantly over the years. Newsprint collection continues to decline
as people switch to electronic versions of newspapers and magazines. Lighter weight plastics are replacing glass,
and some metals, and now make up an increasing portion of the waste stream. Though the volume of these materials
seems to be increasing, the actual recorded tonnage has decreased.
Residential and Commercial materials collected, recycled and disposed of are recorded in Table 3. Overall diversion
has increased from 2012 (43%) to 2013 (46%) in both the residential and commercial streams. The most substantial
increase is in the commercial sector (32% in 2012 and 49% in 2013) primarily due to Mandatory Commercial
Recycling efforts.
Pf mf! Jlo Alii . 1'u +I c, < i,u jcv w 'J I1 9 1 P a g e
Residential
Residential Commercial
Commercial
Total
Total
Tons Collected:
2012
2013
2012
2013
2012
2013
Curbside Yard Waste
13,630
13,352
NA
NA
13,630
13,352
Curbside Recycle
11,325
11,232
3,398
3,272
14,724
14,503
Transfer Station
24,785
21,545
20,309
12,736
45,094
34,281
Commercial to Marin
Resource Recovery
Center
NA
NA
8,857
15,294
8,857
15,294
Total collected
49,740
46,128
32,564
31,302
82,305
77,431
Tons Diverted:
Curbside Yard Waste
13,630
13,352
NA
NA
13,630
13,352
Curbside Recycle
11,325
11,232
3,398
3,272
14,724
14,503
Commercial recovered
through MRRC
NA
NA
6,958
12,015
6,958
12,015
Total Diverted
24,956
24,584
10,356
15,287
35,312
39,871
Diversion
SO,2%
533%,
31A
8'm8%
42A,%
51,5%
Tons to Landfill
46993
37560
Population
88839
88839
Landfill tonnage per capita during the
year (tons landfilled per person)
0.53
0.42
T,abka 31' nnagie Dhiv ed aut i,N spr„ sirnJ 20,12
and 2tl:n13n *See
Backgra. nd on 0hversion l:rd ulatla,riws p.t r va�°t ras l n tl ain
Pf mf! Jlo Alii . 1'u +I c, < i,u jcv w 'J I1 9 1 P a g e
wt AI NI • � � M rrW � [ ,.
mm d"'"Y"[ 5 :tri .". e, V . '1;..81..
Residential Garbage (Gray :art)
Between 2011 and 2013, the numbers of customers subscribing to the 20 -gallon garbage cart has increased by 28%.
Subsequently, there has been a decrease in the number of subscriptions to 64 -gallon (-9%) and 96 -gallon (-15%)
carts. Subscriptions to 32 -gallon carts have increased by 1%. Table 2 shows the number of Residential subscriptions
to garbage service by cart size from 2011 to 2013.
CART size
Number of
customers
2011
202
20 gallon
32 gallon
17739]
14330
X472 4
64 gallon
5428
S134
96 gallon
g
614
649
Total
r214TM>
4
1236WE
`laWe : Saukasa 6pations to O'residentW Garb agy,'^ Service by Cart Size Q& 1� ..2013
.:,tre !nu�w ;„ir�llf x I`c nrat Garbage (Gray Cart)
Table 5 shows the number of Commercial/Apartment subscriptions to garbage service by cart size from 2011 to
2013. Table 6 shows the subscriptions to garbage service by bin and compactor from 2011-2013.
CART size Number of customers
2011 2012
32 gallon 2108; 20V2
64 gallon 1566 .u.. 1586
96 gallon 2,191 mm. 217 2
T ala e 5: ions to Co m ne rdal Garbage Service by Cart Size
1: �oT,niiipn`:iia:/Al.) rt�n-HentGr(:roage(BlnServce)
BIN size
1 yd. Front loader (FL)
Number
of customers
............
2011
0
2012
4
X2013
2 yd. FL
54
�'
3 yd. FL
649
649
4 yd. FL
2....
23
22
5d. FL
y
3
6 yd. FLmm
1 yd. Rear loader (RL)
124
105
.,,
2 yd. RL
25
24
Compactors
60
5
Z�
o
T`allWe F. Sr.rla C16PfiDnS W Ccnirurper ci & &,arbaage S rwr'ua e by I in Slxe and Compactor
11*
Franchisoris'Group Annual Report 2013 0
h,'ej,,) G. , (.0I Fni'ut � s and a cje to N pf-,� l:y
In 2013, MSS moved to a new system for reporting injuries and accidents. The majority of injuries occurred in the
fall when large volumes of yard waste are collected in areas such as Fairfax, San Anselmo, and Ross Valley -North
(unincorporated Fairfax and San Anselmo). Encouraging customers to participate in Chipper Days, use of MSS rolling
tipper carts, and fully automated collection will help to mitigate this issue. The following is a summary of the
accidents, workers compensation claims and injuries that did not become claims, reported to Marin Sanitary in 2013.
Figure 5 shows injuries and accidents by month. These results are comparable to the previous two years.
12 �.
"TI "IT"•-. �.�.
10
8 8 /
8 7�...
6 6 6 6
6
4 4.
i
ttAccidents
�� q
4 4 4 �4 j 4 la r,; Work Comp
q...- s.e
2 2 2 r2 Other reported Injuries
Al
. a,.......
j0
0 w _.
�� .....�. ,_.....,..amu....... _ .,,.�..w.� Yu....w...,.. � „�,.��.
,J\A�o��c p��c
i'dg uu f, 5�Latae & M:circtr ntt �w AH hArisdiffions 2013
The Company has an active safety committee which includes owners, supervisors, loss control and insurance
personnel that meets monthly to review accidents and injuries. Each department has a tailored safety plan that
includes ongoing training and review for new equipment, procedures and all OSHA required safety topics.
Documented employee safety meetings are held daily, weekly, monthly and throughout the year as needed with
written agendas and handout materials in all departments.
All accidents and injuries are investigated in an interactive process with the employee to determine what factors
caused the event. If it is discovered that changes to equipment, procedure, location or any other factor could
prevent a recurrence, corrective action is taken whenever possible. If refresher training is needed, it is addressed
with the entire department. Supervisors and the safety administrator investigate any claim of damage immediately.
If the Company is liable, restitution is made to the owner/customer by either repair at the Company's expense or
payment to the owner/customer. Liable automobile damage is repaired by a reputable, local business and a rental
is provided if needed, or payment is made, as the owner/customer prefers.
AveragL',, Pdlr)efPrio-,.,s pet'ran 2013
$250.00
$200.00
$150.00
$100.00
$50.00
$0.00
2013 Average Monthly Paper/Fiber Prices per Ton
Averac le M,,)i,flAy Mar ket'-Sak/aCEI VIIUC`S [-)el I OfI
J
2013 Average Monthly Bottle shaped Plastics by Resin per Ton
Cardboard
t"', Newsprint
MIX
0 Office Paper
$700.00
$600.00
$500.00
$400.00
Iff
A
$300.00
g
HDPE natural
$200.00
,
q
I'd
j
f HDPE color
$100.00
PET
dl.
,,A <A
0 to co
C��
.......... --------- ...... . ............
Fmwre 7� Averame Scirar) Values ton for Hirfll 113�_,,nsftv PnWethvh?ru.� HfDFIFIn8tuI'A boWes, HDPE wid
N-Alethylime'rereoari�matr.-, (PET) hottles, Not aH pasfics are scAd cmvery uuaair th
ahmi �; ")) 101 '', 1 C ,, f x:,MWIM 11 1 P a g e
Group au • .. 2,013
.�, ,G'
. . . ...........
2013 Average Monthly Mixed Rigid Plastics per Ton
$140.00 _. _....��..�..._.. m.. ,. .. . ...��. �,_.
$120.00 D t
r � o
$
100.00'
..........
U , NMI
$80.00 � � �...... _ I
a i
/ A
$60.00Oil
,.,i'
/,,; fIWO Mixed Rigid Plastics
40.00
$20.00 .... (/ -
1K
J .
,a�Ja,Je�iJa�J�atr PQM\ �aJ ,J�e ,J\J J�Jyw et et t �t
8: Average Scrap Vakna a Pa'bIrKi,.aua for �Vuixed iiigO Pki5 ¢aces (iIU, HDPE, aurid o0mr 43.. r tx.'Ade, and �- antaoimn r plasl'¢as),
2013 Average Monthly Aluminum Cans per Ton
$1,500.00
$1,300.00a
0
;
ti
;
$1,100.00
_..
1.
$900.00
N
$700.00
$500.00
F —
H
�l
f.._
$300.00
?a
aAluminum
$100.00
��. (a .. ,;,v ,.-T—
$100.00)r
t
........
aw
rcx
'
i
PQi�
�aJ .e
;J\J
,a�JaC\ e�iJatJ
�atr
.......
Ht;ubu a Vii; Averdge 5 ar aip Uua s per ^ta°in hisi�Nurninum c Taam No aahgminui'i�a vaaus ,aoVrB in i ebruawya
In closing, MSS is dedicated to moving the diversion dial and as a result have commissioned another Waste
Characterization Study in 2014 similar to the last study performed in 2008 by CalRecovery, a third party private
company. In addition, we plan on working with the JPA Local Task Force on a countywide effort to assess and
implement further programming. Each of us at Marin Sanitary Service, consider it a privilege to work with the
jurisdictions we serve.
'i»ity^' i, I'7 ' I Iu ::qui iii rpt n'• !" r,J)h 1f( 1wa 1 P a g e
Jurns6cti nay Detains: SAN RAFAEL
City[Town I Population
I MOO
• • • 'LLi�iriii'ii
Diversion 2012
Tons Collected:
Curbside Yard Waste
Curbside Recycle
Transfer Station
Commercial to Marin Resource Recovery
Center
Total Tons Collected
Tons Diverted:
Curbside Yard Waste
Curbside Recycle
Commercial recovered through Marin
Resource Recovery Center
Total Tons Diverted
Diversion
To Landfill
Population
Landfill tonnage per capita during the year
Diversion 201
Tons Collected:
Curbside Yard Waste
Curbside Recycle
Transfer Station
Commercial to Marin Resource Recovery
Center
Total Tons Collected
Tons Diverted:
Curbside Yard Waste
Curbside Recycle
Commercial recovered through Marin
Resource Recovery Center
Total Tons Diverted
Diversion
To Landfill
Population
Landfill tonnage per capita during the year
Group Annual Report ;w o2013 r4f
MSS Residential % of MSS Customer Base
Customer Base
12,096 41% --
YLIY L;
!M
Residential Commercial Total
4,999 NA 4,999
5,547 2,221 7,768
14,249 16,331 30,580
NA 6,403 6,403
24,795 24,955 49,750
4,999
NA
4,999
5,547
2,221
7,768
NA
5,030
5,030
10,546
7,251
17,798
42.9%
29.1%
35.8%
31,953
57,713
0.55
Residential
Commercial
Total
NA
5,779
2,138
7,637
9,391
19,961
11,201
11,201
44,578
min"J -: , �,.n ,'u uq I P a ,S in
NA 5,779
2,138 7,637
8,800 8,800
22,216
u .n
49 i�
22,363
57,713
0.39
Residential Cart Mix
A13:141 Mandatory Commercial Recycling Law Data
San Rafael
341NN:
Not Required:
No Recycling:
341NR:
Not Required:
Recycles
416w.341QR:
Qfwatifies: N(Yr
compti&nt
Qualifies:
Recycles
Apartment Total
28
76
91
284
2013 year end
Apartment Total
37
78
58
302
2014 Q1
Commercial Total
305
879
45
215
2013 Year End
Commercial Total
302
879
42
223
2014 Q1
Annual Gross Receipts and Payments
Annual Gross receipts 2013 1 Franchise Fees Road Impact Fee
17,E96,392 1,201,922 443,600
Outreach ExampleS 2013
Generic Pate Increase Notice.
Cities/Town/Board Managers review the message prior to customer distribution. Below is an example of the generic
e that was distributed to residential (Figure 1U) and Commercial/Apartment Customers
Dear Valued (City/Town/District) Residential Customer,
On (DATE), the (Cityf-town CounciVDistrict Board) voted to approve a 5.52% recycling and refuse
service rate increase, effective January 1, 2014.
The refuse hauling rates charged to all of Marin Sanitary Service (MSS) customers are reviewed by an
independent third party auditor (HF&H Consultants, LLC) annually to assess all costs of our providing
service. HUH recommended a 5.52% increase to cover the costs of doing business (including fuel, landfill
disposal, wages and benefit costs) and program costs (containers, communications, outreach, education &
monitoring, etc). Your enclosed billing is for the January through March service period.
Did yorr know?
• Marin County currently diverts 75% of waste generated from the landfill. The County of Marin has a
goal to divert 94°% of waste from going to the landfill by 2025 and everything you recycle and compost
helps make this goal a reality.
• Your garbage cart is not sorted — all items placed in it go to the landfill? Only items placed in your
recycling and gm°evil ")aster carts are sorted by MSS to remove contaminants (like plastic bags) to save
resources.
• 37% of a typical Marin County resident's waste stream is food and yard waste. These can now go in
your green cart every week!
MSS is here to help! We offer the following containers to help meet your waste needs. Garbage carts come in
20, 32, 64 and 96 gallon sizes. Dual sort recycling carts come in 64 and 95 gallon sizes and soon we will have
two sizes of green carts (35 and 64 gallon) for yard waste/ food waste. The less waste you make, the more
money you can save! Together we can save resources from ending up in the Iandfill.Visit the website today to
see how you can make a difference by reducing, reusing, recycling and composting
Thank you for your efforts. We appreciate your business!
Printed on 100 % Post -consumer recycled content
intUire W .Sa°tYr pk� W' ii, w¢tf a to i ltate Mcrea,,d Notice.
40 uMh^j 0i1 10) 1' P,' , ,,k I J r_i111WHI J.6 I P a g e
Franchisors'Group Annual Report2013
Dear Valued (City/Town/Di strict) Commercial/Apartment Customer,
On (DATE), the (Cityrrown Council/District Board) voted to approve a 5.52% recycling and refuse service
rate increase, effective January 1, 2014.
The refuse hauling rates charged to all of Marin Sanitary Service (MSS) customers are reviewed by an independent
third party auditor (HF&H Consultants, LLC) annually to assess all costs of providing service. KF&H
recommended a 5.52% increase to cover the costs of doing business (including fuel, landfill disposal, wages and
benefit costs) and program costs (containers, communications, outreach, education & monitoring, etc). Your bill
reflects the new rate effective January 1, 2014.
Dist you know that AB 341, Mandatory Commercial Recycling, went into effect on July 1, 2012? Businesses that
generate 4 or more cubic yards of solid waste and Multifamily Apartment Buildings with 5 or more units MUST have
recycling services if they do not already. Being more aware of your business' waste and improving efficiency are
ways in which recycling can help your bottom line. Less waste can equal less cost. Visit the website today to see
how you can make a difference by reducing, reusing, recycling and composting L� ])a url.i a in n ��Ii iim rMiiI�I !
Thanks to your efforts and those of our employees, Marin County has one of the highest diversion rates in the
country.
Thank you. We appreciate your business!
Sanitary Sawi`z
41 Printed on 100 tm Post -consumer recycled content
I 10. Sar,phi Residenfial Rate hio ease Nolice
ml ' lair' I iChl , 0 1,1, I,� 1 r,r,cu. 1v�P,ige
Cart SignslFlyersdor Apartments and Commercial Custonters including Schools
Thank you for pitching in to help Marin County reach the Zero Waste
r9al to divert 94%a from the landfill by 20251
Please bring unwanted electronic waste, fluorescent bulbs or batteries
for no cost to the Household Hazardous Waste Facility at 865 Jacoby
St or call (415) 4&5-6806. Do not leave unwanted items by the garbage,
consider donating them or bring them to the dump for a fee.
Thariyou for recycling Cardboard!
Large pieces of cardboard take up too much room in the
recycling carts. Please flatten and bundle non -taxed cardboard
In one ufthe h ways belts,
a* Flatituand ,ut cardb—,d boxes into
bundle, tied with tuln, like in
the photo on the left,
t), flatten bove., into one hay
like in the photo on the right.
COM (UrMUtW I Ik(UVOWiOakM bIWI 10 rAM.Jc
Wyk,,'
Nt "M
No FCratc &8rM—M, . .. .. . ....
OR, M'
v.
. .. .. .. . .....
P
of m
AMIL
R/A
Lot
. . ...........
aoospp/
FIF
AW 4 Fan Lr. I f -M
u un.1 11 o'I., a, y """+
10 �, I'I"d of 1 , 1, " , ) I'l W, " ' '„n. +If 81i P a ley V
Fra nchisors' NAnnuial
Report 2013
BECAUSE IT'S
GOOD FOR THE COMMUNITY
BECAUSE IT'S THE LAW.
c i recycling law, •i
rriare Units must irecycl,e.
uR fironn recy,ciiing,
pIlh
COMPREHENSIVE
RECYCLING PROGRAM?
• Save resources by maximizing current recycling
services and implementing new more comprehensive
recycling programs.
• Increase our property value by keeping your
property eon and using signage to display your
property's recycling values.
• Increase tenant ,satisfaction by engaging them in
recycling programs that develop a sense of community
and responsibility to their homes.
• Fulfill your responsibility to your tenants a nd the
law' by joining the majority ofProperties in Marin County
that are now compliant with the mandatory commercial
recycling low, AB 341.
CONS RVAI] N - OUR EARTH, OURMrilIllig OUR JOB
40 nni-1 ''o IOm" � O , WI nr -'rl,znl '99 M a g e
Recycling is also good for business
Merit gets poial on "Recyclers make good residerrts," * Properties are be r rrmoirrtoirred
time more often when according to the majority of owners by tenants that recycle because they
residents are satisfied and managers in a study of 20 different show more concern, according to the
with quality services. multi -family recycling projects. same study.
am omm mom mom mom UMA mom NUM 10M emm 00= INN= NN= MeuuuuuN am= LIM am ISM
Mem aMM m'iM'iMm@ INOW WE=UIIIIIIOIOIOMM =11mill 1mMOM INIAIN WMMMMiMiM sum NEW aww OMAN som gnu IiOm
Recycling is EASY
Make it port f the • part up signs to increase • Encourage a resident- • Remember,
cleaal. Require recycling
participation. Marin Sanitary
ledgreen team. Renters
Morin Sanitary
in rental agreements
Service provides them for free.
care and can be engaged as
Service is here
and provide signage
Post them by garbage and
community leaders to maintain
to help you
and information on
recycling bins and anywhere
the program and take some of
suucceedl
move-in/out days.
tenants might see them.
the responsibility off of you.
CALL 415-456-2601
1 ASK 1 SPEAK WITH A COMMERCIAL
RECYCLING COORDINATOR Il r
.,_.-Because
We can provide you
with the tools needed to
implement a successful
recycling program --
ft6kbLjjaV.L& "gugi
A13341, California's mandatory commercial
recycling is is In effect. Businesses that generate 4
or more cubic yards of garbage a week and apartment
buildings with 5 or more units must recycle.
can equip and empower your business
to develop a comprehensive waste
reduction and recycling program.
• Technical assistance and evaluation of your recycling needs.
• Education and outreach materials for staff and customers.
• Source separation training.
• Curbside recycling containers.
Contact Us Today!
Io Wrn more cont actour (.'on'nerdal Recycling Coor(fin a tor Jennifer Gyen�er,
ViswR our websitc to learn more almut the law and how Marks SanRary Service can belp
hU �,i:/,vvwvv.marinsaiiitary.com/cornwiierciaI -services/mandatoy-,coryaniercia9,aecycPouvng
21 � 1'
Marin County has
set a goal to divert
94% of all materials
collected away
from the landfill
through recycling,
composting, and/
or reuse by the year
2025.
WHY RECYCLE?
1. POTENTIAL COST SAVINGS.
If you are able to divert enough materials through
recycling, your garbage service may be reduced and this
can save You money.
2. COMPETITIVE ADVANTAGE.
Research indicates that customers are 58% more likely
to buy a company's product or service if that company is
conscious of its environmental impact.
T. ENVIRONMENTAL STEWARDSHIP.
Recycling reduces greenhouse gas emissions,.
diverts
waste from our overflowing landfills, and conserves
natural resources.
4. EASE OF IMPLEMENTATION.
Marin Sanitary Service provides all of the needed
education and training to make the program a success.
10 1 , I I J r I .', t o , 1 11 ij 1 °, 1 1, , i- I rl I C( ;"� ,r j t , I I % r,1. 2:" P a g e
*1 Franchisors' Group Annual Report 2013 0-1111
✓
Igom
OF
✓ i w,
M
IIIA R
O
O 40"
�j
E `IV E R YMGUDo �
COM
S ,` ,� ire Who can compost?
This service is now available at
MS,
your school --Dixie Elementary, It
is also available to ALL single-
family residential customers and
select Multifamily Residences
What can you compost?
You can compost all food waste
(including meat, dairy, and even
bones) , food -soiled paper and
yard trimmings.
Why Compost?
Composting is a crucial part of
Marin's zero waste goal food
scraps make up a third of what's
landfilled. Composting diverts
these nutrient rich resources,
converting them into an organic
soil amendment that is great for
farms and gardens.
,a s4aawvv :ia,ceIboo .co / ar^insanitary
�k� a�g EARTH, �Sna�„ �¢.10,5 Andersen Dir. San Rafael, c �415)4) �
www.iTiarinsanitary.com
miw,i ',�a � P"', � ii i s ,� cd , 2.3 b P a g e
Franchisors' Group Annual Report 2013 0
I m%4N �S
V,
0m ,
face book.co mil mari nsan, itary
CONSERVATION - OUR EARTH, DDDR MISSION, DUR .108 1 050 Andersen Or. Sain ROMC
?, A (415) 4 56-260
00
,www,v,n rin ", nstary.com
a I 1i I I I I I j,7lodh-h,,,;"Iw 241 P a g e
it Group p 2013 1
DON'T
Wa ste A
CHANCE TO
EDUCATE
The new
4R Planet program at
can equip and empower districts,
schools and classrooms to develop
comprehensive waste reduction and
recycling programs.
Help r; li it 5 (.-, h o o 1 - ave! flrww.
• Green team training
• Signage, stickers, and curbside containers
• Educational tours of our state-of-the-art facilities
• Waste audits to show what you're still throwing away
• Onsite assessment and evaluation of recycling needs
• Classroom lessons and assemblies on waste and recycling
• Guides, instructions and worksheets to help you recycle more
Contact
iu sY,w I fl f(ydIII 1,1 j1Cogf,I tk (;Oi Chf, (IR
I fpr our sdi( (IAIIg Gif'th dCq II6I, vI1-fl m
I, I 111 i 11(,, Ho lnMlf'fl iLjl, IPC1ofl
6'(,,im Sr„howi ki,,r, (,I�mj I fmIof a'I.
111 ¢I�� Ll rcaofl (a(Ic(llIIA ar taa1
Y'ddIe craaur Ilwf)n "'1
Please vWt our web .site for° more teSOUrCeS to h0p YOM'5600k
www,marinsanitary.com/school-programs and www.marinsanitary.com/educational-services.
ni,r M , 1, ,Il j r r i,'� <I f n�niti�i r I P a g e
Franchis�ors' Gr,oup Annual Report 2013'04,
Schook can �egally and safely dispose of these iten,is, and more
for a smaU fee at the Marin HOU SehOd Hazardous Waste Facuhlly
�ocated at 565,jacoby Street in San Mae!,
BUt first scl-iook rniust obtain an EPA number. This is because
schook are cons�dered businesseS Under California law.
Obtaining an FIA inun"iber is easy. Just ca�l our Hazardous
Waste Coordiinator at 415-485-6806 to help you set up a safe
and affordaWe disposak pro graM at your schooL
,Nww,MaNnSzv ktawp, orn 4 6 456 26,61 IO50AnderFenDdv(.., °PmRdad,CA94901
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. 2 ,
DATE OF MEETING: 12/15/2014
FROM: Cory Bytof
DEPARTMENT: City Manager's Office
DATE: 12/2/2014
TITLE OF DOCUMENT:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ESTABLISHING MAXIMUM
RATES COLLECTED BY MARIN SANITARY SERVICE FOR REFUSE AND RECYCLABLE MATERIAL
COLLECTION AND DISPO5,L SERVICES, TO BE EFFECTIVE JANUARY 1, 2015
parthient HNad Qsignature)
(LOWER HALF OF FORM FOR APPROVALS ONLY)
APPROVED AS COUNCIL/ AGENCY APPROVED AS TO FORM:
AGENDA ITEM:
. . �
T4
Cit Mana er (sr nature) AttorneyCity(signature)
NOT APPROVED
REMARKS:
Esther Beirne
From: Suzanne Pinto <
Sent: Monday, December 15, 2014 2:57 PM
To: City Clerk
Subject: Proposed rate increase for Marin Sanitary Service
I cannot be at the Council meeting for this issue, but I want to make my feelings known.
I am opposed to any rate increases for Marin Sanitary in the coming year. San Rafael residents
already pay higher rates than at least six other cities, including Novato, which charges $55.00 per
quarter, and has better service with more four pickups per year for large items such as appliances.
I already have the smallest can provided by MSS. Even that is more than I need. Most weeks I only
put out one small bag and a few bottles. I compost most food scraps for my own use. Some weeks I
don't even put out the garbage can because it's empty, yet I am charged for a "service" not provided
in that week.
Even the present $80.00 per quarter is becoming a hardship. I have limited income (Social Security only, no
pension), and the fees and charges levied for city services, including garbage pickup, are going up much faster
than my measly COLA increases. My property taxes are going up as well, and I feel that I eventually will be
forced out of my home and out of Marin County.
I think MSS can learn to live on a budget and make do just like I have to, and not be reaching deeper into the
pockets of those of us like senior citizens with dwindling resources.
Suzanne Pinto
625 Belle Ave
San Rafael, CA 94901
^ �. 6
Esther Beirne, City Clerkt
City of San Rafael
POB 151560 �GEC 1 2014
San Rafael CA 94915-1560
December 15 2014 Cit: k'ark's Office
�y of San ".ei
RE: Proposed rate increases for Marin Sanitary Service
I cannot be at the City Council meeting for this issue, but I want to make my
feelings known.
I am opposed to any rate increases for Marin Sanitary in the coming year. San
Rafael residents already pay higher rates than at least six other cities, including
Novato, which charges $55.00 per quarter, and has better service with more four
pickups per year for large items such as appliances.
I already have the smallest can provided by MSS. Even that is more than I
need. Most weeks I only put out one small bag and a few bottles. I compost
most food scraps for my own use. Some weeks I don't even put out the garbage
can because it's empty, yet I am charged for a "service" not provided in that
week.
Even the present $80.00 per quarter is becoming a hardship. I have limited
income (Social Security only, no pension), and the fees and charges levied for
city services, including garbage pickup, are going up much faster than my
measly COLA increases. My property taxes are going up as well, and I feel that I
eventually will be forced out of my home and out of Marin County.
I think MSS can learn to live on a budget and make do just like I have to, and
not be reaching deeper into the pockets of those of us like senior citizens with
dwindling resources.
P,w,-XZ-
Suzanne
Pinto
625 Belle Ave
San Rafael, CA 94901
RE: M55 rates
Esther C. 6eirne, - City Clerk,
San Rafael, CA 94915-1560.
The waste rates are too h iah.
Compare: Novato Disposal Service (with similar
population)provides a chart listing six Marin
cities charging �bwer rates than San Rafael.
City of Novato rates, for example, are lower than
MSS, AND they give more cans; they provide
free pickups/year for appliances, refrigerators,
mattresses, ie, any large item, by appointment.
MSS ratepayers never receive such offer; we don't
have trucks or the physicality to take such items
ourselves to the Sanitary District.
People in cramped neighborhoods, such as the hi h -
density apartment sections of Gerstle Park tell us
that mattresses and old appliances lust "appear" on
sidewalks in the dark of night, "by magic".
All because there are no pickup services offered.
M55 repeatedly stress a new pro ject/program
needs funding. Really?
The lowest rate is $80/quarter; yet similar service,
with four free annual pickups, if desired, is, 5,55 in
L ovato. What gives?
M55 offers no incentives/rebates for fewer
pickups.
With "high-tech" services, M55 provides some
plastic recycling, NO plastic bag recycling, and no
free large -item pickups.
A rate reduction is fair. I'm paying more for less
and less.
Thank you for considering this,
Lau re lyn Bor
530 Monteci
94903
oiif`e' s
P
TAIO Ot k yam.,
Esther Beirne
From:
Esther Beirne
Sent:
Tuesday, December 16, 2014 1:14 PM
To:
'
Subject:
MSS Rates
Hi Laurelyn: We received your correspondence regarding Marin Sanitary Service, in which you requested the result of
the vote:
Ayes: Councilmembers: Bushey, Colin, Gamblin, McCullough and Mayor Phillips
Sincerely,
Esther Beirne, City Clerk
City of San Rafael
Skyview Terrace
San Rafael, 94903
December 11, 2014
Esther Beirne, City Clerk
City of San Rafael
Re: Marin Sanitary
Received
C 15 2014
" ini ,
aty of San
I am opposed to the rate raise for Marin Sanitary.Mr. Gaberino has been screwing
the citizens of San Rafael for years. He always gets his way because I personally
feel that he greases the palms of the city council.
Our rates are way to high compared to Novato for instance. Mr. Gabarino needs
more money so he can go out and buy more military vehicles.
He does not do a service to our city. Look at the extra money he makes on
recycling. He does not pass that on to his customers? No, he puts it in his pocket.
He is a greedy man.
Yos truly,
Joh Stewart
Cc: Gary Philips
Cc: Joe Garbarino