From: Joe Gremillion
To: public comment
Subject: Let’s keep the parklets
Date: Tuesday, April 12, 2022 8:56:45 AM
Hello,
I heard that the city is considering whether or not to keep the new outside dining areas along Branch Street in the village. I hope you do. Weather permitting (and in the central coast, it often does permit) the parklets create convenient outdoor seating that’s pleasant and visible. I can’t prove they encourage people to stop and shop in the village, but recent guests I had from out of town commented on how friendly the village seemed, thanks in part to being pedestrianand diner-friendly.
I’m originally from San Antonio, TX. If you haven’t heard of the Riverwalk, you might look it up. The village is not downtown SA in scope or flavor. Nor should it be. But the idea of a welcoming, iconic, and photogenic space may be worth trading a few parking spaces along the road.
Since the pandemic began, I’ve noticed how they evolved with new structures, amenities, and decorations as businesses iterate on their design — and that was during the covid emergency.
Imagine what they could become if they were planned and refined over time.
Joe Gremillion
Landscape photography • Weekend Hikers • I will make better mistakes tomorrow Links contained in this email have been replaced. If you click on a link in the email above, the link will be analyzed for known threats. If a known threat is found, you will not be able to proceed to the destination. If suspicious content is detected, you will see a warning.
From: Joni McBride
To: public comment
Subject: Parklet
Date: Tuesday, April 12, 2022 12:27:26 PM
My name is Joni McBride, and I have been a resident of Arroyo Grande all my life. I’ve seen a lot of change over the years in our city. Some good, and some, not so good. One change that has been made during COVID are the Parklets in the village. They not only let locals and guest enjoy our beautiful weather, they get to enjoy our village even more. They are also a huge asset to our businesses. I visit the village often and have never had a problem finding parking. I am support of keeping the parklets, so I’m asking the council to PLEASE keep them.
Thank you,
Joni McBride
Sent from my iPhone
From: Jenna Cusack
To: public comment
Subject: Keep parklets
Date: Tuesday, April 12, 2022 11:39:28 AM
We live in the village and absolutely LOVE the parklets! We live in place with beautiful weather and being outside to enjoy food/ coffee is so ideal. We really hope they stay!! -Jenna Meads
From: Jamie
To: public comment
Subject: Parklets
Date: Tuesday, April 12, 2022 11:53:20 AM
Hello,
I’m in favor of the parklets!
I think they beautify our village. I feel safer eating outside with the barriers in place as well.
Thanks,
Jamie Robertson
Sent from my iPhone
From: Krista Bandy
To: public comment
Subject: Parklets
Date: Tuesday, April 12, 2022 11:43:06 AM
Hello….
Oh the debate of parklets. Some hate em, some love em. Overall, I think they are great, but they need need some tweaks. Make them all the same design, then let the businesses add their own touches.
They bring the community together, they are always full of people chatting and laughing and enjoying their coffee or meal.
I understand they take up parking, but overall, it’s really not many spots. There is almost always parking behind Sidewalk & Andreinis, people are just too lazy to drive around or walk, they want the convenience of up front parking.
I also believe the parklets help non-restaurant businesses. People are sitting outside, looking into retail businesses, and are curious about them. We’ve hand handfuls of people come in that have never shopped with us before because they were sitting outside seeing other going in and out. They look at the items in the windows.
Taking the parklets away not only will hurt restaurants, but all the businesses in the village.
Thank you,
Krista
Sent from my iPhone
From: Kevin Buchanan
To: public comment
Subject: Item 10.a - Consider Potential Permanent Parklet Program Date: Tuesday, April 12, 2022 9:14:26 AM
Council members and staff,
It would be a shame to walk away from this "unique opportunity to re-imagine how the City’s public right-of-way can be utilized to improve long-term community vibrancy and economic vitality" - as described in the report - with the decision that, actually, free on-street parking is the best way to use our public space. I support a continuation of the parklet program, but I think the proposed program is heavily biased toward using our public space for the latter.
I hope that we can make the use of this public space more equitable for local businesses and the general public, as opposed to using the limited space for a handful of stalls for private car storage. If the city is going to put a price on that space, then that price should also apply to drivers parking their cars in public space. There are already multiple public parking lots servicing Branch St, and most of the time they are nowhere close to full. When they are full, the handful of spaces on Branch St. aren't going to make much of a difference. Additionally, I can tell you from experience on that street every morning and afternoon, most of those free on-street spaces are taken up by the same cars every day. These business owners and employees could just as easily use the public lots. If accessibility is a concern, then limit onstreet parking to only ADA parking.
If we are content giving that space away for free, in service of potential revenue generation for businesses or as a general service to the public, then we should acknowledge the potential and actual revenue generation of parklets and more public space for people. For example, I personally have found myself more willing to spend money on Branch St. at some of the businesses with parklet programs, where I know I can find outdoor, more social seating. I'm less likely to do so without some outdoor semi-public space, and I'd assume I'm not alone in that regard. People like social, outdoor space, whether it be due to public health restrictions during a pandemic, precautions for ones own health during this endemic phase of COVID, or simply because outdoor social spaces are nice. We should build more.
I suggest the following revisions to the proposed parklet program:
- Remove the cap and buffer between parklets.
- Remove the restrictions that limit parklets to eating establishments. - Align the rental fees with parking fees (or lack thereof).
Please prioritize more productive and social public spaces in our city. There are plenty of parking lots.
Kevin Buchanan
Arroyo Grande Planning Commission
From: Laura Beth Amy
To: public comment; Caren Ray Russom; Jimmy Paulding
Subject: Village Parklet Program
Date: Tuesday, April 12, 2022 9:48:05 AM
Dear council members,
My name is Laura Beth Amy and I’m the manager/owner of Humdinger Brewing as well as an Arroyo Grande native. I’m writing this letter from a personal standpoint, rather than business.
I LOVE the parklets in the village. I love walking through and seeing familiar faces enjoying their coffee/meals outside. I love the sense of community that the parklets bring. It makes the village feel more alive. After 2 years of uncertainty it’s amazing to see friends and family catching up and laughing and enjoying each other and our beautiful central coast weather. I feel that this truly adds charm to our already charming Village.
Another thing I’d like to address is safety. Before the parklets were installed i watched people crossing the street in front of our business and saw so many near miss vehicle vs. pedestrian accidents. Since the parklets have been installed i haven’t seen this happen at all. I believe the parklets force people use the crosswalk since they can’t access the sidewalk from the street in this area. Another positive outcome.
I’m looking forward to the city’s plan to make the parklets look better and we’re looking forward to making a more permanent and inviting area for our customers to enjoy.
I vote YES on keeping the parklet program in the village.
Thank you for your consideration,
Laura Beth Amy
Humdinger Brewing
From: Meggie Brummett
To: public comment
Subject: In favor of parklets in Arroyo Grande
Date: Tuesday, April 12, 2022 7:29:42 AM
I am writing to express my support of continuing the parklets in the village of AG. My family and I have greatly enjoyed utilizing these outdoor spaces, not only because of the ongoing pandemic but because they add a great deal of charm and space for dining in the village. On average, we utilize a parklet space approximately once a week. These spaces are a direct incentive for us to spend our money locally, and dine out more often. As longtime locals who love living in this town, this is exactly the type of program we want to support.
Please feel free to email me with any questions!
Thank you,
Meggie Brummett
From: P and K
To: public comment
Subject: Keeping the Parklets
Date: Tuesday, April 12, 2022 8:58:18 AM
To Whom It May Concern:
We would like to express our support for keeping the parklets in the Village.
These are an attractive method of providing our restaurants additional seating that could help provide the additional patrons needed to recover from the pandemic closures.
In addition, they provide much needed traffic calming through the Village. Vehicles travel through the village at a high rate of speed. I have noticed an improvement (slowing down) since the parklets have been up.
The loss of parking spaces is far outweighed by the positives of the parklets. We live in a climate that allows for year round outdoor dining. The parklets are tourist draws for just this reason.
The city should support their Village businesses by allowing the parklets to stay.
Thank you,
Patrick and Kami Griffin
Sent from iPhone
MEMORANDUM
TO: City Council
FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Supplemental Information
Agenda Item 10.a. – Consider Potential Permanent Parklet Program DATE: April 12, 2022
Attached is additional correspondence received before 4 p.m. for the above referenced item.
cc: City Manager
Assistant City Manager/Public Works Director
Community Development Director
City Attorney
City Clerk
City Website (or public review binder)
From: Jeannie Miranda
To: public comment
Subject: SAVE OUR PARKLETS
Date: Tuesday, April 12, 2022 3:41:55 PM
>
> Please let the wonderful addition to our village stay! I live in the Village, walk it daily at 7 am. Daily I see what this improvement has added for so many reasons! Thank you all for listening to your constituents! > Jeannie Miranda
>
>
>
From: Denise Miller-Andreini
To: public comment
Subject: Parklets
Date: Tuesday, April 12, 2022 3:22:05 PM
Over the past years our parklet has become this beautiful outdoor space for our customers to connect while soaking up the perfect weather. With summer just around the corner, I hope to keep this beautiful spot for the community to enjoy our food and drinks with their friends and loved ones out in the fresh air.
Along with all the other restaurants that have parklets we all agree that the parklets have become a staple in the village.
Our goal is always to enrich our wonderful community. Being able to enjoy local businesses in the sunny fresh air has added so much joy to the village streets. Our parklets give the community a space to soak up the sun enjoying a good book, catching up with friends, and creating lasting memories, preferable over a delicious iced latte made by our wonderful baristas. I want the parklets to stay if the cost can fit into my business finances.
--
photo Denise Miller-Andreini
Business Owner, Cafe Andreini
805-481-6117 business |
cafeandreinicoffee.com
Create your own WiseStamp email signature
Links contained in this email have been replaced. If you click on a link in the email above, the link will be analyzed for known threats. If a known threat is found, you will not be able to proceed to the destination. If suspicious content is detected, you will see a warning.
From: Karen Hicks
To: public comment
Subject: parklets in the Village
Date: Tuesday, April 12, 2022 3:11:39 PM
We live over by Paulding School and built our home here in 1991. We love our Village and spend the majority of our entertainment (eating out/having drinks/music) funds here. The addition of the parklets has been a great asset allowing more seating and less waiting. We strongly support the City allowing these areas to continue permanently, with the caveat that they be made more aesthetically pleasing.
If the barriers need to remain for safety then they could be painted (maybe the high school art class could be creative with them as a project). Or maybe even something more permanent with the businesses making city approved improvements.
We hope you will take this into consideration when you make your decision.
Michael & Karen Hicks
From: Trisha Coffey
To: public comment
Subject: Keep the Parklets
Date: Tuesday, April 12, 2022 3:02:39 PM
Please keep the parklets, we love the character of the village with the parklets! Please keep them!
Trisha Coffey
Arroyo Grande
From: Mario Estrada
To: public comment
Subject: Parklets
Date: Tuesday, April 12, 2022 2:48:34 PM
To the Arroyo Grande City Counsel,
It has come to my attention that the City is considering removing the parklets from the Village of Arroyo Grande, UNLESS the business owners are willing to pay some type of fee. I don't know what that fee is, but I think it is unfair to our business owners. They paid thousands of dollars to have these parklets installed just to survive the pandemic. If they don't want to pay, I'm sure they'll have to demolish the parklets. So what happens if another pandemic comes along and we're forced into another shut down? These business owners have been put under enough pressure and it saddens me that City officials are looking for ways to increase revenue off the backs of businesses who struggled to survive. The City should consider reimbursing the businesses for the cost of installing the parklets if You want them gone. --
Mario Estrada, Jr
DRE # 01956371
From: Donna
To: public comment
Subject: AG Village Parklets
Date: Tuesday, April 12, 2022 2:34:27 PM
I want to comment on the proposed exorbitant fees for businesses to keep their parklets.
I am totally against charging struggling businesses a tax for use of space that helps people enjoy their experience in the Village!
The city forced businesses At their own expense to “ go outside “ for COVID and now the same city is trying to charge for what turned out to be a great idea!
An idea that helped businesses survive and thrive in a very difficult time.
I would think the city would want The Village to continue to survive and thrive.
Covid seems to be past but higher prices for everything is ramping up and certainly will impact the business owners currently.
I think it’s a great idea to keep the parklets.
Charge no fee or a very small fee, and maybe consider a more cohesive look to the parklets for Village Charm.
Please continue to be business friendly as that is what makes Arroyo Grande a great place to be! Sincerely
Donna Silva
Sent from my iPhone
From: Patty St. Denis
To: public comment
Subject: Parklets
Date: Tuesday, April 12, 2022 2:29:02 PM
Good afternoon,
We are lifetime community members of Arroyo Grande. We love to see businesses be successful. We too are small business owners in the service industry so we understand what the pandemic has done to small business. The parklets not only allow for these businesses to reach people that prefer to be outdoors but allow for businesses to have options for their guests. I’ve seen parklets in other communities made quite beautiful with murals of the community painted by members of the community. I do not feel they impact the parking negatively and I am someone that goes to the village multiple times a week. Please allow the parklets to stay for our small businesses that want to keep them.
Thank you,
Patty St. Denis
From: Jeremy Davenport
To: public comment
Subject: Parklets
Date: Tuesday, April 12, 2022 2:27:51 PM
I’m in support of keeping the parklets! It’s so nice to sit outside at businesses that didn’t previously have much room. Im thinking specifically of Mule Bakery. Lots of families and visitors enjoy that parklet and removal could prove to be a major set back in the growth of that shop. They weathered this last 2 years and need every little advantage. There’s plenty of parking in the village but the biggest critics are those who don’t want to have to walk 50 yards (just my unscientific opinion :) I really hope AG decides to keep them. Thank you!
From: Emily Silva
To: public comment
Subject: Parklet
Date: Tuesday, April 12, 2022 2:08:50 PM
Hello,
I am emailing to share my sincere hope that the village businesses will be able to keep their parklets at a low or no cost. These businesses have done everything that they can to stay open and successful during a really difficult couple of years for the whole community.
I have seen several people comment on the aesthetic of these structures taking away from the charm of the Arroyo Grande Village. While I do agree that there should be a streamlined and safe way to keep these parklets, it is important we don’t forget that the village charm is created by the people that come to visit and enjoy the shops and restaurants. And it is quite obvious that everyone fills these spaces daily, enjoying themselves and pouring revenue into the businesses and the city!
I personally visit the village several times a week and have never had a hard time finding parking. The parklets only take up a few spots in comparison to all of the parking that is available-including handicap parking which I use every week when I bring my grandmother with me.
I would ask that you also consider the sizing of each individual parklet and determine fees accordingly. It would be unfair to charge what is already an extremely inflated fee to a small business with a parklet that’s only one or two parking spots of space verses business who have partitioned of an entire street or majority of a block.
Thank you,
Emily Silva
From: Kirsten Silva
To: public comment
Subject: Parklet discussion
Date: Tuesday, April 12, 2022 2:01:28 PM
Marilyn Keyes at Mule Bakery enjoying her Friday treats.
From: Nathan Alvarado
To: public comment
Subject: Park let’s
Date: Tuesday, April 12, 2022 1:58:19 PM
There is no consistency to how they look. Not all vendors can use a park let, if they were all food and beverage businesses you would have no on street parking.
Do those businesses pay for that space as they also pay for their rent? There is a lot more to this that needs to be resolved,
Good luck
From: Denise V
To: public comment
Subject: Parklets in the Village - PLEASE KEEP!!!
Date: Tuesday, April 12, 2022 1:58:02 PM
As a resident of Arroyo Grande, I am appealing to you to PLEASE keep the parklets in the Village. They are such a nice addition to the ambiance and charm of our Village. They are enjoyed by so many at the various restaurants on a daily basis. I am always able to find parking; so for me, parking space availability doesn’t seem to be an issue. They would be sorely missed and our Main Street would look so barren and empty without them. Not to mention the amount of time, energy, and money the business owners have put into these parklets during Covid. How wonderful it would be that something GREAT (these parklets) could come from this battle we’ve all been through these past two years.
Let them stay! We locals and the tourists, too, enjoy them! They are an inviting asset for our community.
Thank you for reading my email and for taking my heartfelt words into consideration.
Kind regards,
Denise Velten
From: Cali Smock
To: public comment
Subject: Parklets
Date: Tuesday, April 12, 2022 1:55:17 PM
Good afternoon!
Please continue Arroyo Grande’s parklet program. Outdoor seating is ideal in a temperate climate like ours and the spaces can be used year-round; therefore, the space will not sit idle at any point.
Regarding its impact on driving, I tow travel trailers two to four times a month through the Village. At no point have I felt concerned for the safety of my eight-foot-wide trailer, even with delivery trucks parked in the center lane. As a pedestrian and driver (not towing), I feel safe as well.
I walk or drive downtown and never have concern about my ability to find parking, even with my Tahoe. (It is very difficult to find street or garage parking in Downtown SLO so we rarely go there anymore.) My family and I visit the Village often and the opportunity to sit outside restaurants like Humdinger—our favorite— is better than inside. Also, these businesses have been able to increase sales, providing the city with more tax revenue. We have come to the Village more since the parklets were installed.
At Doc Burnstein’s, no longer do we need to stand around waiting for a table as my uncoordinated kids drop globs of ice cream from their spoons.
If Village Cafe installed a parklet that would be welcome too.
Please continue the parklet program so that we can continue to enjoy our visits to the Village.
Kindly,
Ashley
From: Nicole Contreras
To: public comment
Subject: Outdoor dining
Date: Tuesday, April 12, 2022 1:39:29 PM
As a homeowner in Arroyo Grande, I implore you to continue parklets in the Village of Arroyo Grande.
This increases revenue and build builds a family friendly atmosphere.
Nicole Contreras
From: Abel C
To: public comment
Subject: Outdoor seating in the Village of Arroyo Grande Date: Tuesday, April 12, 2022 1:33:19 PM
We strongly support keeping outdoor seating in Arroyo Grande establishments.
This has allowed for social distancing, keeping small businesses open during pandemic and supporting our local businesses. It’s dog friendly.
It allows for more occupancy outdoors , enjoying the outdoor environment and people watching.
Abel Contreras
Arroyo Grande Citizen
From: Lacey Pearl
To: public comment
Subject: Re: Parklets
Date: Tuesday, April 12, 2022 12:50:22 PM
Hello!
I also just wanted to add One more thing about the parklets.
Unfortunately, because they aren’t all the same or even similar, the parklets give off a tent city or homeless encampment vibe. Like I said. I understand their Utility when everything was closed, but their continued use with no end in sight has a negative affect on the aesthetics of the Village as well as parking.
-Lacey
Sent from my iPhone
On Apr 8, 2022, at 6:15 PM, [email protected] wrote:
Thank you for providing comment on the City Council Agenda. We have received your comment and it will be included in the record and provided to City Council.
Sincerely,
Arroyo Grande City Clerk
From: diana foster
To: public comment
Subject: I’m in favor of parklets
Date: Tuesday, April 12, 2022 12:44:16 PM
I hope the city council votes in favor of keeping the parklets. It’s so nice to have the option to sit outside or inside.
Most people don’t get enough fresh air and it’s fun to see people strolling and driving by.
I’m definitely in favor of them.
I was born and raised here, 77 years so far.
Thank you,
Diana Foster
Sent from my iPad
From: Jenn Avila
To: public comment
Subject: Parklet
Date: Tuesday, April 12, 2022 12:43:41 PM
I just wanted to write in and say that my family has loved the parklets around town. It has been so special to drive downtown and see the place alive! The businesses have done such a great job making them beautiful as well as keeping them clean.
They have also been such a special place for my daughter and I to do her homeschool work. She requests we go to the “outdoor Andreini’s” spot every week!
We would love to see them stay
Thank you!
Jennifer Avila
Sent from my iPhone
Item 11.a.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director SUBJECT: Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
DATE: April 12, 2022
SUMMARY OF ACTION:
Review the Request from South County Sanitary Service (SCSS) for an Integrated Solid Waste Collection Rate Increase, set a public hearing for June 14, 2022, to consider adoption of adjusted solid waste collection service rates for June 15, 2022, January 1, 2023 and January 1, 2024, and direct staff to prepare and distribute a Proposition 218 notice with a delayed implementation start date of May 1, 2022, for the proposed waste collection services rate increase and public hearing.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no impact on staff resources related to the proposed action. There will be a minor increase in franchise fee revenue from the increase and a minor increase to the City’s cost for solid waste collection. If the proposed multi-year rate setting approach is approved, future personnel resources will not be required to prepare interim year reviews, thus providing an operational efficiency. Pursuant to the City’s existing Franchise Agreement with SCSS, the costs of consultant services to review SCSS’s rate adjustment request are paid by SCSS.
RECOMMENDATION:
1) Review the Integrated Solid Waste Collection Rate Increase request; 2) Set a public hearing for June 14, 2022, to consider adjusting the waste collection services rates for June 15, 2022, January 1, 2023 and January 1, 2024; and 3) Direct staff to prepare and distribute a Proposition 218 notice with a delayed implementation start date of May 1, 2022, for the proposed waste collection services rate increases.
BACKGROUND:
The City has had a Franchise Agreement with South County Sanitary Service (SCSS), a subsidiary of Waste Connections, for collection, diversion and disposal of solid waste in the City since 1997. On June 10, 2008, a new Solid Waste Collection Franchise Agreement with SCSS was approved and the Franchise Agreement was subsequently amended
Item 11.a.
City Council
Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
April 12, 2022
twice in 2016. Through the terms of the Franchise Agreement, SCSS is entitled to compensation for its “labor, equipment, materials and supplies, taxes, insurance, bonds, overhead, transfer and transport, processing, division, disposal, provide and all other things necessary to perform all of the services required by [the] Agreement.” This compensation is received through the rates and charges paid by the City’s customers, which are presented to the City through rate review applications and reviewed by the City Council through the Proposition 218 process.
Per the Franchise Agreement, rates are reviewed in accordance with the “City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates” (Manual). The Franchise Agreement allows for a base rate adjustment every three years and interim rate increases in the other two years. In interim rate periods, the operator is limited to increases resulting from inflation, tipping fee adjustments, and franchise or regulatory fee increases. During base rate years, the operator is able to request adjustments due to changes in other operational costs as set forth in the Manual.
The following table summarizes the SCSS rate review history beginning in 2005 (based on the year of the application (which is typically the implementation year):
Year Review Type Increase %
2005 Base Year 5.60%
2006 Interim Year 3.09%
2007 Interim Year 3.76%
2008 Base Year 3.00%
2009 Interim Year 0.00%
2010 Interim Year (1) 0.00%
2011 Interim Year 0.00%
2012 Interim Year (1) 5.15%
2013 Base Year 3.20%
2014 Interim Year 2.05%
2015 Interim Year 0.00%
2016 Base Year 3.25%
2017 Interim Year 1.10%
2018 Interim Year 1.60%
2019 Base Year 10.06%
2020 Interim Year 1.70%
2021 Interim Year 0.70%
2022 Base Year 22.19%
Rate Increase History: 2005 to 2022
(1) SCSS did not request a rate increase in 2010 (which would have been a "normal" cycle to do so), and accordingly, did not submit a Base Year rate application. However, SCSS did submit a rate request in 2011 using an Interim Year methodology. The reasonableness of using the resulting "hybrid" approach was discussed in detail in the 2011 Interim Year report, which concluded that this approach was reasonable given the circumstances.
Item 11.a.
City Council
Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
April 12, 2022
The City received an initial rate adjustment request from SCSS on October 20, 2021 and a revised draft application on February 18, 2022, that included a base year rate increase request of 24.65%. Along with the Cities of Grover Beach and Pismo Beach, and the Oceano Community Services District, the City jointly contracted with consultant William C.
Statler to prepare a review of the rate increase request to determine if it complies with the provisions of the City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates (Manual).
ANALYSIS OF ISSUES:
Rate Adjustment Evaluation
The Manual ensures that the hauler’s rates are justifiable and supportable, and reasonable to the cost of service; it also ensures that there is ongoing review and rate stability, and that the rate setting process is easy to administer and implement. Through the assistance of Mr. Statler, the City completes a formal and thorough review of the financial and operating data to protect the City’s ratepayers. The process is designed to prevent large, unexpected fluctuations in rates anticipated from funding a broadening scope of integrated waste management services.
After careful review of the rate adjustment requests from SCSS and relevant supporting documentation, Mr. Statler completed a report evaluating the request and suggesting that a 22.19% increase is justifiable in 2022 (Attachment 1). Two key differences account for the initial 24.65% increase request and the recommended 22.19% increase included in Mr.
Statler’s report:
Greenwaste processing costs have been reclassified as “pass-through” costs, and while these costs may be recovered, no profit is allowed on them. Integrated Waste Management Authority (IWMA) fees have been excluded from the fee analysis.
On Page 12 of Mr. Statler’s report, the key drivers behind the proposed 22.19% rate increase for 2022 can be summarized as follows:
8.05% for truck depreciation
7.71% for investments in food and green waste recycling 2.41% for insurance
1.06% for increase in gas and oil
2.96% for all other cost increase including labor, ongoing maintenance, and other pass-through costs
In addition, SCSS proposes to include the next two interim rate adjustments in its request at this time. These rates are proposed to increase each of the next two years to address the following factors:
Item 11.a.
City Council
Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
April 12, 2022
1. Changes in the Consumer Price Index (CPI) for “controllable” operating costs. The Manual states that the annual change in CPI will be based on the published Bureau of Labor Statistics in their Monthly review.
2. Changes in “pass-through costs” (primarily landfill tipping fees, which are set by the County Board of Supervisors and are not controlled by SCSS) Delayed Rate Implementation
Mr. Statler’s report includes a discussion of Delayed Rate Implementation increases on page 3, which describes a proposal to allow SCSS to recoup rates that may have been collected during delays in the consideration of the rate review application. The City has not previously approved delayed implementation rates. However, the Manual does provide for this possibility if there is a delay in implementation of a rate increase of more than 120 days after application if it is “no fault of the franchise hauler.” Given the initial October 20, 2021 submittal date, this would indicate rate approval may have been necessary by March 1.
Two of the factors that mitigate this 120-day period are identified in Mr. Statler’s report as follows:
1. When the 120-day period was set, the understanding at the time was that the Proposition 218 45-day notice and protest requirements did not apply to approval of private company solid waste rates.
2. Review was delayed pending consideration of rate increases by the IWMA and their possible impact on SCSS’s rates. These new rates were not adopted by the IWMA until March 9, 2022.
In accounting for these factors, Mr. Statler and staff recommend that delayed rate implementation apply for the period between May 1, 2022, and the City Council’s approval of the rate adjustments, anticipated to be considered on June 14, 2022, as discussed further below. While delays in completion of the analysis of the rate review application were “no fault” of SCSS, they were not the fault of the City either. SCSS believes the delayed rate implementation start period should begin March 1, 2022, 132 days after the original rate review application submittal date of October 20, 2021.
The proposed temporary Delayed Rate Implementation increase is shown in the table below:
Please note that the Delayed Rate Implementation increase ends December 31, 2022.
Beginning January 1, 2023, rates will lower to an increase representing 22.19%, plus any changes related to CPI for “controllable” operating costs and changes in “pass-through costs.”
Effective
Date New Rate %
March 1 Delay Rate
Implementation
May 1 Delay Rate
Implementation
Mr. Statler & Staff
Recommendation
SCSS
Recommendation
15-Jun 22.19% 11.95% 5.12% 27.31% 34.14%
Item 11.a.
City Council
Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
April 12, 2022
Integrated Waste Management Authority Fee
The IWMA is a Joint Powers Authority that plans and implements regional solid waste and hazardous waste programs on behalf of its member agencies, including the management of hazardous waste, universal waste, solid waste, green/food waste, and recycling. At the time of its formation in 1994, the IWMA’s member agencies included the County of San Luis Obispo (County) and the seven incorporated cities in the County. The majority of special districts in the County that also provide solid waste services within their jurisdictions also participate in the IWMA through a Memorandum of Agreement and currently one special district representative also sits on the IWMA Board of Directors. Last year, the County exercised its option to exit the IWMA. Around the same time, the IWMA adopted increased fees to support its ability to implement SB 1383 and its ongoing operational and capital needs.
SB 1383 was signed into law on September 19, 2016, to require a reduction of organic waste disposal to landfills from 2014 levels by 75% and increase edible food recovery by 20%, by 2025. SB 1383 is the most significant waste reduction mandate to be adopted in the State of California in the last 30 years and required all jurisdictions in the State that provide solid waste collection and disposal services to implement a mandatory organic recycling ordinance by January 1, 2022. All businesses, residents, and multi-family apartments must have access to recycling programs that capture food scraps, landscaping waste, and other organic waste materials in order to reduce the production of methane gas.
This law has significant policy and legal implications for State and local governments, including cities, counties and special districts that provide solid waste services.
The IWMA has taken the lead in implementing SB 1383 on behalf of its member agencies.
Following the County’s exit from the IWMA, it became necessary for the IWMA to reevaluate its fees in light of the anticipated loss of revenue from the customers within the unincorporated areas of the County. This reevaluation resulted in a delay in adoption of revised fees, which are levied on the haulers and ultimately passed through to customers.
At its March 9, 2022 IWMA Board of Directors meeting, the Board adopted revised fees establishing a solid waste management fee of 5.4% of gross hauler receipts. This revised fee alters the structure previously used by the IWMA, which had included the following: (1) 2% of the gross revenue collected from commercial customers; and (2) the solid waste management fee of $0.30 per month for residential accounts charged less than $50 per month and a 2% fee for residential accounts paying more than $50 a month. The new fee no longer charges different fees related to commercial and residential accounts and instead charges an overall fee equivalent to 5.4% of the hauler’s gross receipts, calculated based on the gross receipts amounts used to determine the hauler’s franchise fee obligations to its franchisors. The proposed IWMA Fee with the temporary Delayed Rate Implementation increase is shown in the table below:
Item 11.a.
City Council
Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
April 12, 2022
The fee increase will be implemented starting July 1, 2022. SCSS is authorized to bill this fee to the rate payers benefiting from these additional services in compliance with Proposition 218.
Franchise Agreement Termination Clause
The Franchise Agreement also contains language that provides that if the rate increase request compared with the rate in effect at the date of the Franchise Agreement exceeds the cumulative cost of living increase from that same date, the City has the option of terminating the Franchise Agreement at any time within nine months following approval of the requested rate increase. The “trigger” calculation does not limit the amount of increase that SCSS can request; it simply incentivizes SCSS to keep its requested increases below the cumulative increase in CPI to avoid the City opting to terminate the Franchise Agreement. This would result in exceeding the “trigger” by 26.89% At this time, staff recommends that the City not pursue the termination (“trigger”) option set forth in Section 8.3 of the City’s Franchise Agreement with SCSS. Based on a detailed review of costs as presented in Attachment 1, the costs are reasonable and rates have been calculated in accordance with the Rate Manual. The following table shows that solid waste rates for Arroyo Grande are among the lowest in the Central Coast area for single family residential services.
Single Family
Residential
Current
Rate
March 1 retroactivity,
5.4% New Rate
May 1 retroactivity,
5.4% New Rate
32-gallon Container $ 0.30 $ 1.41 $ 1.34
64-gallon Container $ 0.30 $ 1.83 $ 1.74
96-gallon Container $ 0.30 $ 2.26 $ 2.14
IWMA Fee
Item 11.a.
City Council
Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
April 12, 2022
Finally, the requirements of Senate Bill 1383 have created significant new regulatory requirements, burdens, and costs for the City, its solid waste partners such as the IWMA, and SCSS. Franchise Agreement Amendments are being pursued concurrent with this rate adjustment request that will require SCSS to help the City meet certain SB 1383 requirements, and termination of the Franchise Agreement with SCSS at this time would create significant disruption in the efforts to comply with the new State regulations.
Proposition 218 Process
Based upon the provisions of Proposition 218, all property owners receiving solid waste collection services must receive written notice by mail at least 45 days prior to the City Council consideration of approving solid waste rate adjustments. The notice must include the amount of the fee, the basis on which the fee was calculated and the date, time and place of the public hearing and must clearly advise of the right to protest the fee increase.
Most recently, the City conducted Proposition 218 rate hearings for waste collection service rates in 2014, 2015, 2016 and 2019.
It is recommended that the City Council set the public hearing for June 14, 2022, and direct staff to ensure that notices are provided to affected property owners of the proposed rate adjustments stated in the following table in compliance with Proposition 218:
Arroyo Grande’s total proposed Solid Waste and Recycling rate increase is also broken out below.
Mr. Statler & Staff
Recommendation
Single Family
Residential
Current
Rate
March 1 retroactivity,
34.14% New Rate
May 1 retroactivity,
27.31% New Rate
32-gallon Container $ 19.46 $ 26.10 $ 24.78
64-gallon Container $ 25.29 $ 33.92 $ 32.19
96-gallon Container $ 31.13 $ 41.76 $ 39.63
Item 11.a.
City Council
Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
April 12, 2022
Next Steps
If staff’s recommendations are approved, next steps for the Waste Collection Rate Increase will include:
April 30, 2022 – Deadline for mailing the 45-day public hearing notice in compliance with Proposition 218
June 14, 2022 – Conduct a public hearing to consider protests regarding the proposed rate adjustments identified in the Proposition 218 hearing notice June 15, 2022 – If approved, new rates go into effect ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt staff’s recommendations to 1) Review the South County Sanitary Service Integrated Solid Waste Collection Rate Increase request; 2) Set a public hearing for June 14, 2022, to consider adjusting the Solid Waste Collection Rates for June 15, 2022, January 1, 2023 and January 1, 2024; and 3) Direct staff to prepare and distribute a Proposition 218 notice with a delayed implementation start date of May 1, 2022, for the proposed water and wastewater rate increases;
22.19%
SCSS Proposed Rate
Increase Effective June
15, 2022
Truck Depreciation: 8.05%
Food & Green Waste
Recycling: 7.71%
All Other Cost Increases:
2.96%
Insurance: 2.41%
Increase in Gas & Oil:
1.06%
7.40%
Recommended Delayed
Implementation Rate
Increase Effective May 1,
2022
The additional 7.40%
temporary increase is for
the delayed rate
implementation from May
1 to June 15,
2022.
The 7.40% temporary
increase will expire
January 1, 2023.
No More than 5.4%
IWMA Fee Effective
July 1, 2022
At the March 9, 2022
IWMA BoardMeeting,
adopted a fee increase.
This fee
increase will be
implemented starting July
1, 2022 and will not
exceed 5.4%.
Item 11.a.
City Council
Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase
April 12, 2022
2. Adopt staff’s recommendations to 1) Review the South County Sanitary Service Integrated Solid Waste Collection Rate Increase request; 2) Set a public hearing for June 14, 2022, to consider adjusting the Solid Waste Collection Rates for June 15, 2022, January 1, 2023 and January 1, 2024; and 3) Direct staff to prepare and distribute a Proposition 218 notice with a delayed implementation start date of March 1, 2022, for the proposed water and wastewater rate increases; or
3. Provide other direction to staff.
ADVANTAGES:
Approval of the rate increase is consistent with the terms of the existing rate setting methodology and the quality of service provided by SCSS has been good. Therefore, the recommended action will enable continuation of uninterrupted refuse collection and recycling services at a reasonable cost.
DISADVANTAGES:
Customers will experience higher solid waste collection and recycling costs.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.
Attachments:
1. Solid Waste Rate Review
2. Draft Proposition 218 Notice March 1 Delayed Rate Implementation
3. Draft Proposition 218 Notice May 1 Delayed Rate Implementation
4. SCSS Response Letter on Rate Adjustment
South County Sanitary Service
SOLID WASTE RATE REVIEW
For the Communities of
Arroyo Grande
Grover Beach
Oceano
Pismo Beach
March 2022
ATTACHMENT 1
South County Sanitary Service
Solid Waste Rate Review
March 2022
TABLE OF CONTENTS
Report Purpose 1
Summary of Findings and Recommendations 1
Findings 2
Rate Recommendations 4
Rate Summary for Single Family Residential Customers 4
Background 4
Rate Review Workscope 6
Revenue and Rate-Setting Objectives 7
Financial Overview 7
Costs by Type 7
Revenues by Source 7
Service Accounts by Type 8
Rate-Setting Process 8
Base Year and Interim Year Reviews 8
Rate Increase History 9
Rate-Setting Methodology 10
Are the Costs Reasonable? 10
Detailed Cost Review 10
Trends in External Cost Drivers 14
Rates in Comparable Communities 14
What Is a Reasonable Return on These Costs? 16
Preparing the Rate Request Application 17
Proposed Rate Summary 17
Implementation 17
Rate Differences Between Communities 18
Cost Accounting Issues 18
Cost of Living Tigger Option 20
Coordination with Other Agencies 22
Summary 22
APPENDIX
A. Base Year Rate Request Application from South County Sanitary Service B. HZI Greenwaste Digester Cost Analysis
- 1 -
South County Sanitary Service
SOLID WASTE RATE REVIEW
For the Communities of Arroyo Grande, Grover Beach,
Oceano and Pismo Beach
REPORT PURPOSE
On October 20, 2021, South County Sanitary Service (SCSS) submitted a Base Year rate increase application to be effective January 1, 2022 to the Cities of Arroyo Grande, Grover Beach and Pismo Beach and the Oceano
Community Services District (CSD). However, due
to complexity, concerns with pending rate
increases by the Integrated Waste Management
Authority (IWMA) and significant subsequent
reviews and information exchanges, a revised
application was submitted on February 18, 2022.
The final application is the focus of this report in
reviewing the SCSS rate increase request in
accordance with adopted Franchise Agreement
provisions regarding rate increase applications and
to make rate recommendations to these four
agencies as appropriate.
SUMMARY OF FINDINGS AND
RECOMMENDATIONS
In its final application, SCSS is requesting a rate
increase of 22.19% in the cities of Cities of Arroyo Grande, Grover Beach and Pismo Beach; and 21.03% for the Oceano CSD (the difference is due to a 5% franchise fee rate in the Oceano CSD versus 10% in the other agencies). This compares with an initial rate request of 24.65% for three agencies (and 23.35% in the Oceano CSD). As discussed in greater detail below, all of the concerns that surfaced in the iterations and further analysis that followed in addressing issues with proposed costs for 2022 have been resolved.
There are two key differences between the initial and revised application:
124 Cerro Romauldo Avenue
San Luis Obispo, CA 93405
805.544.5838 ◼ Cell: 805.459.6326
[email protected]
www.bstatler.com
William C. Statler
Fiscal Policy ◼ Financial Planning ◼ Analysis ◼ Training ◼ Organizational Review .
.
.
.
.
.
.
.
.
Joint Agency Review
SCSS provides similar
services to each of these
agencies under formally
approved franchise
agreements that regulate rates
and establish procedures for
considering rate increases.
Because the financial
information for SCSS is
closely related for these four
agencies, this report jointly
reviews rate requests and
provides recommendations for
each of them.
Solid Waste Rate Review
- 2 -
• Greenwaste processing costs have been reclassified as “pass-through” costs: while costs may be recovered, no profit is allowed on them.
• IWMA fees have been excluded from the fee analysis. These are approved by a separate agency and will be charged separately on customer bills.
Key cost drivers in this review include the following, which account for almost 90% of the cost increases since 2020 (last audited financial statements):
Findings
• Complete Application. With its revised application, SCSS has fully provided the supporting documentation required for rate requests under the Franchise Agreements in Arroyo Grande, Oceano, Pismo Beach and Grover Beach. The revised application (Appendix A) has been correctly prepared.
• High Level of Service at a Reasonable Cost. SCSS provides a broad level of high-quality services to these four agencies—including garbage, recycling and green waste collection and disposal as well as hauler-provided “waste wheeler” containers for all three services—at very competitive rates compared with many other communities. In fact, even with the recommended rate increase, rates in these four agencies will be among the lowest of those surveyed. In short, South County communities have the best of both worlds: high quality services at a low cost (compared with other communities). • “Trigger Option.” As discussed in greater detail below, the rate increase exceeds the cost of living threshold that “triggers” the option of terminating the Franchise Agreements within nine months after rate approval.
• Need for Updated Rate-Setting Methodology. The rate-setting process is based on the City of San Luis Obispo’s Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates (Rate Manual) adopted in 1994. In short, with very minor modifications, this approach has been in place for almost 30 years. Because of several complex issues that surfaced in the 2019 rate review that had not been encountered in the past in using this rate-setting methodology (most notably corporate overhead, greenwaste and materials recovery facility (MRF) costs as well as rate structure concerns), I recommended updating the Rate Manual before the next Base Year review. This has not occurred, and accordingly, this review is based on the current methodology. 2022 Cost Increase from 2020 Amount % of Total Rate Impact*
Depreciation 998,708 36% 8.05%
Greenwaste 956,783 35% 7.71%
Insurance 298,612 11% 2.41%
Gas and Oil 131,422 5% 1.06%
Total Key Drivers 2,385,525 87% 19.23%
Other Costs 367,275 13% 2.96%
Total $2,752,800 100% 22.19%
Solid Waste Rate Review
- 3 -
However, the need for an update is even greater now: along with the 2019 concerns, new issues have surfaced in this review. As discussed in greater detail below, these include depreciation amortization period, interim rate reviews, cost allocation methodologies, accounting for disposal costs, timeframe for submitting and reviewing applications and trigger option.
• Delayed Rate Implementation. In the past, there has been no consideration of delayed rate implementation. However, the Rate Manual does provide for this if there is a delay of more than 120 days after application if it is “no fault of the franchise hauler.” Given the initial October 20, 2021 submittal date, this would indicate rate approval by March 1. However, there are three factors that mitigate this 120-day period:
1. When the 120-day period was set, the understanding at the time was that Proposition 218 45-day notice and protest requirements did not apply to approval of private company solid waste rates. However, since then
many agencies have determined that these
provisions are applicable to approval of
rates by companies like SCSS. This alone
conceptually adds 45 days to the review
process.
2. Review was delayed pending consideration
of rate increases by the IWMA and their
possible impact on SCSS rates. These new
rates were not adopted by the IWMA until
March 9, 2022. Moreover, it was
subsequently determined that since these
rates are set by the IWMA – and not the
franchising agencies – that they did not
affect agency rate-setting. (As noted above,
this resulted in a revised application from
SCSS on February 18, 2022).
3. While SCSS has been very responsive in following-up on requests for supporting data, the scope and complexity of the 2022 application has been significantly greater, and subsequently taken longer, than envisioned in the Rate Manual.
In accounting for these factors, I recommend that delayed rate implementation apply for any rates with a May 1, 2022 effective date. In short, while these delays were “no fault” of SCSS, they were not the fault of the agencies, either. That said, SCSS believes the delayed rate implementation start period should be March 1, 2022.
Where delayed rate implementation is applicable, the following temporary rate increases would be required depending on whether the delayed rate implementation start period is March 1 or May 1. (Note: The added rate increase goes up for each month of delay to be recovered while the amortization period is shortened.) Under either start date, rates would be reset in January 2023 to the “core rate” for the Interim Year adjustment.
About Proposition 218 Notices
Not all agencies prepare and issue
“Proposition 218” notices for private
sector solid waste rate increases.
However, for those that do, the notice
sets the maximum amount that rates
can be increased at the public
hearing: rates can be approved at
lesser amounts without re-noticing.
However, agencies cannot adopt
higher rates – even if they only apply
to a few customers – without another
45-day re-noticing. As such, it is
recommended that the notices reflect
the rates requested by SCSS.
Solid Waste Rate Review
- 4 -
Temporary Delayed Implementation Rate Increase*
It should be noted that while the report recommends a May 1 start date for delayed rate implementation, a reasonable case could be made for an even later start date (such as June 1 or July 1) based on the mitigation factors discussed above.
Lastly, several of these review timeframe factors are not unique to the 2022 review. Accordingly, the application submittal and review schedule should be considered in the Rate Manual update.
Rate Recommendations
It is recommended that cities of Arroyo Grande, Grover Beach and Pismo Beach adopt rate increases of 22.19%; and 21.03% in the Oceano CSD.
As discussed below, this rate increase significantly exceeds the cost of living threshold that triggers the option of terminating the Franchise Agreements within nine months after rate approval. However, it is important to note that this “trigger” calculation does not limit the allowable rate increase that SCSS may request (or limit the amount that agencies may approve) under the methodology set forth in the Franchise Agreements.
Cost of Living “Trigger” Option. Along with establishing the rate review methodology, Section
8.3 of the Franchise Agreements provides that if the rate increase request compared with the rate in effect at the date of the agreement exceeds the cumulative cost of living increase from that same date, each agency has the option of terminating the agreement at any time within nine months following approval of the requested rate increase (assuming it was submitted in accordance with the rate-setting methodology).
This provision was subsequently amended in 2016 allowing for an added increase based on landfill rate increases (“weighted” for their proportion of total costs). It is important to note that other than a waiver for greenwaste cost increases in 2011, no other adjustments (including other pass-through costs) are allowed under the Franchise Agreements. As detailed later in this report, the calculated threshold limit is significantly less than the proposed rate increase.
Effective Date March 1 May 1 March 1 May 1
May 1 5.26% 0.00% 5.55% 0.00%
June 1 9.01% 2.63% 9.51% 3.17%
July 1 14.02% 7.01% 14.80% 7.40%
August 1 21.03% 12.62% 22.19% 13.32%
September 1 31.55% 21.03% 33.29% 22.19%
* Ends December 31, 2022
Start Period
Oceano CSD Other Agencies
Solid Waste Rate Review
- 5 -
Rate Summary for Single Family Residential Customers
Table 1 summarizes the proposed
monthly rates for single family
residential (SFR) customers. As reflected
in this summary, given the significant
cost drivers facing SCSS, the increases
will be modest under the proposed rate
increase. For example, for collection of a
32-gallon garbage container (the most
common SFR service level) as well as
separate waste wheelers for recycling
and green waste, the proposed monthly
rate will increase by about $3.80 on
average for the four agencies.
BACKGROUND
On October 20, 2021, SCSS submitted a
Base Year rate increase to be effective
January 1, 2022. As noted above, due to
several complex issues, a revised
application was submitted on February
18, 2022. This application was prepared in accordance with the rate review process and methodology formally set forth in its Franchise Agreements with Arroyo Grande, Grover Beach, Oceano and Pismo Beach.
In establishing a rate-setting process and methodology, each of these Franchise Agreements specifically reference the City of San Luis Obispo’s Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates. This comprehensive approach to rate reviews was adopted by San Luis Obispo in 1994 and establishes detailed procedures for requesting rate increases and the required supporting documentation to do so. It also sets cost accounting standards and allowable operating profit ratios.
As noted above, the financial information for Arroyo Grande, Grover Beach, Oceano and Pismo Beach is closely related. For this reason, these four agencies jointly contracted with William C.
Statler (who has extensive experience in evaluating rate requests in accordance with the adopted methodology) on October 6, 2022 to evaluate SCSS’s rate increase application.
This is the seventh Base Year analysis performed under this rate-setting methodology. The first was prepared in September 2001; second in August 2004; the third in August 2007; the fourth in December 2012; September 2015; and the last one in April 2019. As discussed below, several Interim Year rate reviews have prepared since then.
Table 1. Single Family Residential Rates
32 64 96
Current
Arroyo Grande $19.46 $25.29 $31.13
Grover Beach 17.65 23.85 30.03
Oceano 14.98 21.56 42.19
Pismo Beach 17.31 34.63 51.94
Proposed
Arroyo Grande 23.78 30.90 38.04
Grover Beach 21.57 29.14 36.69
Oceano 18.13 26.09 51.06
Pismo Beach 21.15 42.32 63.47
Increase: Proposed Rates
Arroyo Grande 4.32 5.61 6.91
Grover Beach 3.92 5.29 6.66
Oceano 3.15 4.53 8.87
Pismo Beach 3.84 7.69 11.53
Container Size (Gallons)
Solid Waste Rate Review
- 6 -
Franchise Agreement Summary
Historically, each agency has had its
own approach to determining
service levels and adopted differing
Franchise Agreements accordingly.
While these became similar
beginning in 1999, in 2008 the
Cities of Arroyo Grande, Grover
Beach and Pismo Beach adopted renewed franchise agreements, followed by the Oceano Community Service District in Summer 2010, which are the same in all key provisions:
• Each agency contracts with SCSS for garbage, green/food waste and recycling; and SCSS provides the container (waste wheelers) for each service. • As noted above, each agency has adopted the same rate-setting methodology, including the option of terminating the agreement within nine months following approval of the requested rate increase if it exceeds the cost of living threshold. • Arroyo Grande, Grover Beach and Pismo Beach have adopted franchise fees of 10%; the Oceano CSD reduced its rate to 5% in February 2020.
Each of these agreements were similarly amended in 2016 to:
• Extend the term of the agreement for 20 years in recognizing the amortization of extensive investments in food and green waste processing.
• Revise the cost of living threshold “trigger” to include prorated landfill cost increases.
RATE REVIEW WORKSCOPE
This report addresses four basic questions:
• Should SCSS be granted a rate increase? And if so, how much? • How much does it cost to provide required service levels? • Are these costs reasonable?
• And if so, what is a reasonable level of return on these costs? The following documents were closely reviewed in answering these questions:
• Franchise Agreements and any Amendments for each agency • Independently audited financial statements for SCSS for 2019 and 2020. • City of San Luis Obispo’s Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates (Rate Manual)
• SCSS rate increase application and supporting documentation • Follow-up interviews, correspondence and briefings with agency and SCSS staff • Rate surveys of Central Coast communities
Table 2. Franchise Agreement Effective Dates
Agency Agreement Amendments
Arroyo Grande June 10, 2008 March 22, 2016
July 26, 2016
Grover Beach July 7, 2008 June 20, 2016
Oceano July 14, 2010 July 29, 2016
Pismo Beach June 3, 2008 August 3, 2016
Solid Waste Rate Review
- 7 -
REVENUE AND RATE SETTING OBJECTIVES
In considering SCSS’s rate increase request, it is important to note the revenue and rate setting objectives for solid waste services as set forth in the Franchise Agreements via the Rate Manual.
Revenues. These should be set at levels that:
• Are fair to customers and the hauler.
• Are justifiable and supportable.
• Ensure revenue adequacy.
• Provide for ongoing review and rate stability.
• Are clear and straightforward for the agency and hauler to administer.
Rate Structure. Almost any rate structure can meet the revenue principles outlined above and generate the same amount of total revenue. Moreover, almost all rate structures will result in similar costs for the average customer: what different rate structures tell us is how costs will be distributed among non-average customers. The following summarizes adopted rate structure principles for solid waste services:
• Promote source reduction, maximum diversion and recycling. • Provide equity and fairness within classes of customers (similar customers should be treated similarly).
• Be environmentally sound.
• Be easy for customers to understand.
FINANCIAL OVERVIEW
While detailed financial and service information is provided in the SCSS rate request application (Appendix A), the following summarizes costs, revenues and account information based its proposal for 2022 for all areas serviced by SCSS.
Costs by Type. Total proposed costs for
2022 (after deducting for non-allowable
and limited costs as discussed later in
this report) are 17.3 million. As
reflected in Table 3, five cost areas
accounted for 85% of total costs:
• Direct labor for collection: 23%
• Disposal: landfill, recycling and
greenwaste: 27%
• Vehicle operations and maintenance
(including depreciation): 19%
• Franchise fees: 8%
• Insurance: 8%
Solid Waste Rate Review
- 8 -
Revenues by Source. Total revenues
(without proposed rate increases) are
$15.2 million. As reflected in Table 4,
58% of SCSS’s revenues come from
single-family residential (SFR)
accounts. Services to multi-family
residential and non-residential
customers account for 42% of their
revenues, with less than 1% from other
revenues.
This significant gap between revenues
and expenses (plus allowable profit)
drives the proposed rate increase.
Service Accounts by Type. While
single-family residences account for
58% of revenues, they represent 92% of
total accounts (Table 5).
This reflects the fact that per account,
multi-family and non-residential
customers generate more solid waste
than single-family residential customers
(and thus more revenue per account).
RATE-SETTING PROCESS
Under the Rate Manual, the rate-setting
process follows a three-year cycle:
• Base Year. The first year of the cycle—the Base Year—requires a comprehensive, detailed analysis of revenues, expenses and operating data. This information is evaluated in the context of agreed upon factors in the franchise agreements in determining fair and reasonable rates. As noted above, the last Base Year analysis for SCSS under this approach was prepared in April 2019.
• Two Interim Years. In both the second and third years, SCSS is eligible for Interim Year rate adjustments that address three key change factors: changes in the consumer price index (CPIU) for “controllable” operating costs; changes in “pass-through costs” (primarily landfill tipping fees, which SCSS does not control: they are set by the County Board of Supervisors); and an adjustment to cover increased franchise fees.
The first two adjustment factors are “weighted” by the proportionate share that these costs
Solid Waste Rate Review
- 9 -
represent of total costs (excluding franchise
fees). For example, in the current Base Year
analysis for recommended 2019 rates,
controllable costs account for about 75% of
total costs, with landfill disposal costs
accounting for about 25%.
The rate review for the two Interim Years
requires less information and preparation time
than the Base Year review, while still
providing fair and reasonable rate adjustments.
Rate Increase History
The following summarizes the SCSS rate review
history beginning with 2005 (last eighteen years)
based on the year of the application (which is
typically the implementation year).
Table 6. SFR Rate History: 2005 to 2022 (Last 18 Years)
1. From 2004 to 2011, the franchise fee rate in Pismo Beach was 6% compared with 10% in the other three agencies, and as such, its rate increase was slightly less. In July 2011, Pismo Beach adopted a Year Review Type
Arroyo
Grande
Grover
Beach Oceano
Pismo
Beach (1)
2005 Base Year 5.60% 5.60% 5.60% 5.30%
2006 Interim Year 3.09% 3.09% 3.09% 2.95%
2007 Interim Year 3.76% 3.76% 3.76% 3.60%
2008 Base Year 3.00% 3.00% 3.00% 2.90%
2009 Interim Year 0.00% 0.00% 0.00% 0.00%
2010 Interim Year (2) 0.00% 0.00% 0.00% 0.00%
2011 Interim Year 0.00% 0.00% 0.00% 0.00%
2012 Interim Year (2) 5.15% 5.15% 5.15% 5.15%
2013 Base Year 3.20% 3.20% 3.20% 3.20%
2014 Interim Year 2.05% 2.05% 2.05% 2.05%
2015 Interim Year 0.00% 0.00% 0.00% 0.00%
2016 Base Year 3.25% 3.25% 3.25% 3.25%
2017 Interim Year 1.10% 1.10% 1.10% 1.10%
2018 Interim Year 1.60% 1.60% 1.60% 1.60%
2019 Base Year 10.06% 10.06% 10.06% 10.06%
2020 Interim Year 1.70% 1.70% 1.70% 1.70%
2020 Franchise Fee Rdctn (3) -5.00%
2021 Interim Year 0.70% 0.70% 0.70% 0.70%
2022 Base Year (4) 22.19% 22.19% 21.03% 22.19%
Proposed Interim Year Rates
Consistent with past practice, SCSS
has proposed an interim year
approach that is slightly different from
the Rate Manual methodology. In the
interest of a more straightforward,
streamlined process, SCSS proposes
simply adjusting rates by changes in
the CPI-U in 2023 and 2024. As noted
in the past, the concept is consistent
with the Rate Manual approach, but is
simpler and allows for multi-year rate
setting. Accordingly, it is
recommended that four agencies
continue using this approach.
Given the that interim review
methodology set forth in the Rate
Manual has not been used for several
years, this is another area the update
should consider.
Solid Waste Rate Review
- 10 -
10% franchise fee, bringing it in alignment with the other three agencies (as well as most other agencies in San Luis Obispo County). In implementing the 10% rate in 2011, Pismo Beach adopted an added 3.9% increase beyond the interim year rate increase of 5.15% requested by SCSS.
2. SCSS did not request a rate increase in 2010 (which would have been the “normal” cycle to do so), and accordingly, did not submit a Base Year rate application. However, SCSS did submit a rate request in 2011 using an Interim Year methodology. The reasonableness of using the resulting “hybrid” approach was discussed in detail in the 2011 Interim Year report, which concluded that this approach was reasonable given the circumstances.
3. In February 2020, the Oceano CSD reduced its franchise fee from 10% to 5%, reducing rates by 5%.
4. Proposed rate increase.
5. As noted above, this chart reflects SFR rate increases. SCSS began charging for commercial recycle containers. These rates were set at 50% of the garbage rates at that time.
Assuming the proposed rate increases are approved, this will result in an average annual rate increase of 3.6% over the last eighteen years. While there have been notable peaks in 2019 and 2022, largely due to regulatory and external market changes for recyclables, this reflects a high level of rate stability and price containment for SCSS customers.
RATE SETTING METHODOLOGY
Are the Costs Reasonable?
The first step in the rate review process is to determine if costs are reasonable. There are three analytical techniques that can be used in assessing this:
• Detailed review of costs and service responsibilities over time. • Evaluation of external cost factors, such as general increases in the cost of living (as measured by the consumer price index).
• Comparisons of rates with other communities.
Each of these was considered in preparing this report, summarized as follows.
Detailed Cost Review
In its rate application (Appendix A), SCSS provides detailed financial data for five years:
• Audited results for the two prior years (2019 and 2020). • Estimated results for 2021.
• Projected costs for the Base Year (2022).
• Estimated costs for the following year (2023).
Solid Waste Rate Review
- 11 -
Additionally, for virtually all line items, SCSS provided supplemental detail upon request to support cost increases from 2020 to 2022.
Table 7 below provides actual costs for 2020 (most recent audit results) compared with requested and recommended cost projections for 2022. While there are significant cost increases in several categories, they are reasonable given the cost drivers facing SCSS.
The Short Story. The key drivers behind the proposed rate increases for 2022 can be summarized by four cost factors over the past two years:
• Truck depreciation.
• Food and green waste recycling.
• Insurance
• Gas and oil
All other cost increases including labor, ongoing maintenance, disposal costs at the landfill and MRF, account for less than 3% of the rate increase.
Table 7. Detail Cost Review: 2020 Compared with 2022
2020
Actual Amount Change
Direct Labor 3,614,140 3,922,681 308,541
Administrative Costs
Corporate Overhead 356,299 378,184 21,885
Office Salaries 768,706 835,736 67,030
Other Expenses -
Depreciation 535,997 1,534,705 998,708
Gas and Oil 821,425 952,847 131,422
Insurance
Medical 674,318 779,174 104,856
General Liability 388,530 582,286 193,756
Office Expense 229,923 268,409 38,486
Operating Supplies 83,727 77,820 (5,907)
Outside Services 270,687 211,251 (59,436)
Permits 67,486 97,290 29,804
Tires 127,834 151,673 23,839
Truck Repairs 642,080 606,106 (35,974)
Other Costs 323,681 353,209 29,528
Total Allowable Costs 8,904,833 10,751,371 1,846,538
Pass-Through Costs
Disposal Costs
Landfill 1,701,768 1,805,407 103,639
MRF 1,223,081 1,143,280 (79,801)
Greenwaste 824,872 1,781,655 956,783
Franchise Fees 1,629,121 1,454,123 (174,998)
Facility Rent, Related Party 170,111 181,814 11,703
Interest, Related Party 133,282 213,214 79,932
Transportation, Related Party 34,271 43,275 9,004
Total Pass-Through Costs 5,716,506 6,622,768 906,262
Total Costs $14,621,339 $17,374,139 $2,752,800
2022 Proposed
Solid Waste Rate Review
- 12 -
These costs are organized by costs where SCSS is allowed a profit (“Allowable”) and those where it can recover the cost but not earn a profit on them (“Pass-Through”).
The following describes the basis for each for the significant changes.
Allowable Costs
• Direct Labor. This reflects a two-year increase of 8.5%, or about 4.2% per year. Given the tight labor market and current increases in CPI, this increase for retention and attraction is reasonable.
• Office Salaries. This also reflect annual increases of about 4% per year. Again, given the tight labor market and current increases in CPI, this increase for retention and attraction is reasonable.
• Depreciation. The 2019 Base Year report noted that as fully depreciated trucks were replaced, significant continuing higher
depreciation costs were expected in the future
due to two factors: annual depreciation costs
on fully depreciated trucks would go from
zero to about $60,000 each; and the cost basis
for new trucks would be significantly higher
than in the past. Given replacements during
2021 and those proposed in 2022, the
increased cost is reasonable. Combined with a
possible change in amortization schedule as
noted in the sidebar, planned replacements
should result in stabilized costs in the future.
• Gas and Oil. These costs are projected to increase by about 7.5% annually. Given the volatility (both up and down) of diesel and CNG costs (especially recent cost spikes), this is a reasonable assumption for 2022 costs.
• Insurance: Health Care and Liability. These costs are projected to increase significantly by about 12.5% annually (7.5% for health care and 22.5% for liability insurance). Given increases in health care costs and current liability insurance market, these are reasonable assumptions for 2022 costs.
• All Other Allowable Costs. While there are ups and downs in the other individual line items, in total these reflect modest annual increases of about 2%.
Pass-Through Costs
• Disposal Costs: Landfill. No rate increases are reflected in the rate application ($41.00 per ton). The modest two-year increase reflects increased tonnage.
Truck Amortization
The Rate Manual calls for
depreciating trucks over seven years.
While this made sense in 1994,
manufacturing improvements since
then have resulted in longer lives, with
ten years becoming the industry
standard. As noted above, this
change should be considered as part
of the Rate Manual update.
Solid Waste Rate Review
- 13 -
• Disposal Costs: Recycling (Related Party). This cost category reflects a decrease in the tonnage rate from $96.00 to $84.59.
• Disposal Costs: Greenwaste. After depreciation, this is the largest cost increase from 2020.
These costs are incurred under an on-site agreement with HZI and reflect costs to build (via depreciation), operate and maintain the anaerobic digestion plant. The purpose of this plant is to process local food and greenwaste in meeting California regulation SB 1383. Key drivers include higher costs than initially projected for construction; ongoing operations and maintenance due to feedstock challenges; and local outbound material. The following further describes these challenges; and a cost summary is provided in Appendix B.
Construction and startup The construction of the anaerobic digester plan in San Luis Obispo was one of the first high solids digesters in the United States and the 99th overall renewable gas anaerobic plant built globally by HZI. The
construction of the anerobic digester in
California posed unique challenges but was
constructed safely and without any
environmental incidents. Given the “first-ofthe-kind” nature of the project in California, the actual cost to construct the anaerobic
digestion plant exceeded the original budget
originally set in 2014. The cost increases were
mainly driven by labor availability, prevailing
wage, civil and underground cost increases,
and equipment and material escalations.
Operation and maintenance. The anaerobic
digestion plant exceeds 95% availability
(uptime) to process waste while producing
renewable green electricity. To ensure the plant
is reliably available to process local community
waste, the operations and maintenance cost of the anaerobic digestion exceeds the original annual budget due to several factors:
1. The quantity of entrained inorganic material (such as sand and metal) entrained in the waste increases the wear and tear on the mechanical components of the plant, which inherently increases the number of staff required to operate and maintain the facility.
2. The lower than anticipated quantity of food was also increases the wear and tear on the equipment, which has mainly been driven need to continue to educate the community on organics recycling and the impacts of COVID on commercial businesses (most notably restaurants).
3. Plant labor costs have increased due to the requirements of processing the waste, maintaining the equipment, competitive labor market and inflationary costs in San Luis Obispo County and more broadly in California. Plant administrative costs such as insurance, legal and taxes continue to increase greater than was historically budgeted.
Local Benefits
It should be noted that that while
costs have increased, HZI and SCSS
believe there are substantial local
benefits to the greenwaste operation,
including:
• Powering over 600 homes with
6.2 million kWh per year of
renewable electricity.
• Diverting 72 million pounds of
organics from landfills per year
• Reducing greenhouse gas
emissions by 5,300 metric tons
per year.
Solid Waste Rate Review
- 14 -
In summary, key operation and maintenance cost increases reflect continual sand removal; increased equipment replacement and maintenance; increased labor hours and rates; and management of backend compost.
Depreciation. Plant depreciation expenses reflect the higher construction costs discussed above in addressing waste profile challenges such as sand and low food waste content.
Lower Natural Gas Production (Revenue). Due to the amount of inorganic material (like sand) and the lower than anticipated food waste content, the overall natural gas production is lower than planned. This directly limits the amount of overall natural gas production potential of the digester and ultimately electricity sales.
In the past, greenwaste contract costs have been considered “allowable” costs. However, as disposal costs, they are more like landfill and recycling costs, which are treated as “passthrough” costs that can be recovered but profit is not allowed on them. Accordingly, this is considered a pass-through cost in this rate review. However, this another area that should be reviewed as part of the rate manual update.
• Franchise Fees. This reflects the removal of IWMA fees from the cost base. • Interest (Related Party). Interest is an allowable cost under the Rate Manual. In this case, interest costs are assessed internally by Waste Connections based on a methodology that takes into account its corporate costs of borrowing and financed assets. Accordingly, this is treated as a “pass-through” cost. SCSS’s auditors have previously provided a written opinion on the reasonableness of the cost methodology; and I have reviewed the calculations underlying the projected costs in accordance with this methodology. Given the increase in financed assets as reflected in depreciation costs, I believe the projected interest costs for 2022 are reasonable.
Trends in External Cost Drivers
The most common external “benchmark” for evaluating cost trends is the consumer price index.
Over the past two calendar years (2020 and 2021), the U.S. CPI-U increased by 8.5% (about
4.2% annually). Excluding the cost drivers discussed above, all other costs over the past two years increased by 4.1% (about 2% annually).
Rates in Comparable Communities
Lastly, reasonableness of rates (and underlying costs) can also be evaluated by comparing rates with comparable communities. However, survey results between “comparable” communities need to be carefully weighed because every community is different.
Nonetheless, surveys are useful assessment tools—but they are not perfect and they should not drive rate increases. Typical reasons why solid waste rates may be different include:
• Franchise fees and AB 939 fee surcharges
• Landfill costs (tipping fees)
Solid Waste Rate Review
- 15 -
• Service levels (frequency, quality)
• Labor market
• Operator efficiency and effectiveness
• Voluntary versus mandatory service
• Direct services provided to the franchising agency at no cost, such as free trash container pick-up at city facilities, on streets and in parks
• Percentage of non-residential customers, and how costs and rates are allocated between customer types
• Revenue collection procedures: Does the hauler or the franchising agency bill for service? And what are the procedures for collecting delinquent accounts? • Services included in the base fee (recycling, green waste, containers, pick-up away from curb)
• Different rates structures
• Land use and density (lower densities will typically result in higher service costs) • Mix of residential and non-residential accounts
With these caveats, the following summarizes single family residential rates for other cities in the Central Coast area compared with the proposed rates for SCSS. As reflected below, even with the recommended or proposed rate increases, Arroyo Grande, Grover Beach, Oceano and Pismo Beach will have among the lowest rates of the agencies surveyed.
Table 8. Single Family Residential Rate Survey
Single Family Residential Monthly Trash Rates
30-40 60-70 90-101
Atascadero $28.55 $44.50 $55.77
Morro Bay 22.88 45.76 68.64
Paso Robles 30.90 51.12 57.25
San Luis Obispo* 22.51 45.03 67.56
Santa Maria na 30.69 34.81
San Miguel 28.23 44.48 61.06
Templeton 31.40 45.01 44.48
Proposed: South County Sanitation Service Area
Arroyo Grande 23.78 30.90 38.04
Grover Beach 21.57 29.14 36.69
Oceano CSD 18.13 26.09 51.06
Pismo Beach 21.15 42.32 63.47
* Proposed 2022 rates scheduled for review in April 2022 Container Size (Gallons)
Solid Waste Rate Review
- 16 -
Summary: Are the costs reasonable? Based on the results of the three separate cost-review techniques—trend review, external factor analysis and rate comparisons—the proposed cost assumptions for 2022 are reasonable.
What Is a Reasonable Return on these Costs?
After assessing if costs are reasonable, the next step is to determine a reasonable rate of return on these costs. The rate-setting method formally adopted by Arroyo Grande, Grover Beach, Oceano and Pismo Beach in their Franchise Agreements with SCSS includes clear criteria for making this assessment. It begins by organizing costs into three main categories, which will be treated differently in determining a reasonable “operating profit ratio:” Allowable Costs (Operations and Maintenance): Reasonable Operating Profit Allowed • Direct collection labor • Fuel
• Vehicle maintenance and repairs • Depreciation
• Insurance • Billing and collection
Pass-Through Costs: Can be Recovered but No Profit Allowed • Disposal costs (landfill, recycling, greenwaste)
• Franchise fees
• Payments to affiliated companies (such as facility rent, interest and trucking charges) Excluded and Limited Costs: No Revenues Allowed
• Charitable and political contributions • Non-IRS approved profit-sharing plans • Entertainment • Fines and penalties
• Income taxes • Limits on corporate overhead
After organizing costs into these three categories, determining “operating profit ratios” and overall revenue requirements is straightforward:
• The target is an 8% operating profit ratio on “allowable costs.” • Pass-through costs may be fully recovered through rates but no profit is allowed on these costs.
• No revenues are allowed for any excluded or limited costs.
In the case of SCSS, about 60% of their costs are subject to the 8% operating profit ratio; and 40% are pass-through costs that may be fully recovered from rates but no profit is allowed. No recovery is allowed for excluded costs. The overall operating profit ratio after allowable and pass-through costs is 5%.
Solid Waste Rate Review
- 17 -
Preparing the Rate Request Application
Detailed “spreadsheet” templates for preparing the rate request application—including assembling the required information and making the needed calculations—are provided in the Rate Manual. SCSS has prepared their rate increase application in accordance with these requirements (Appendix A); and the financial information provided in the application for 2019 and 2020 ties to its audited financial statements.
Proposed Rate Summary
The following summarizes the calculations that support the requested and recommended rate increases:
Table 9. Proposed Rate Increase Summary
As reflected in this summary, all the rate-setting factors are the same for all four agencies are the same except for the franchise fee adjustment (which reflects that higher franchise fees will be required with the rate increase): 5% for the Oceano CSD and 10% for the other three agencies.
Implementation
The following summarizes key implementation concepts in the adopted rate-setting model:
• The “8%” operating profit ratio is a target; in the interest of rate stability, adjustments are only made if the calculated operating profit ratio falls outside of 10% to 6%. • On the other hand, if past ratios have been stronger than this target, then the revenue base is re-set in the Base Year review.
Oceano Others
Allowable Costs 10,751,371 10,751,371
Allowable Profit (8% Operating Ratio) 934,901 934,901
Pass-Through Costs
Disposal
Landfill 1,805,407 1,805,407
MRF (Recycling) 1,143,280 1,143,280
Greenwaste 1,781,655 1,781,655
Franchise Fees 1,454,123 1,454,123
Related Party Costs 438,303 438,303
Total Pass-Through Costs 6,622,768 6,622,768
Allowed Revenue Requirements 18,309,041 18,309,041
Revenue without Rate Increase 15,260,678 15,260,678
Revenue Requirement: Shortfall (Surplus) 3,048,363 3,048,363 Rate Base Revenue 18,309,041 18,309,041
Percent Change in Revenue Requirement 19.98% 19.98%
Allowed Revenue Increase * 21.03% 22.19%
* Adjusted for 5% franchise fee in Oceano and 10% in others
Solid Waste Rate Review
- 18 -
• Special rate increases for extraordinary circumstances may be considered.
The result of this process is a proposed rate increase of 22.19% (21.03% in the Oceano CSD).
RATE DIFFERENCES BETWEEN COMMUNITIES
If costs for Arroyo Grande, Grover Beach, Oceano and Pismo Beach are so similar, why are the residential rates so different?
The short answer: history and different approaches to rate structure philosophies.
History
Until 1999, service levels under the Franchise Agreements with SCSS between these four agencies were significantly different. The rates in place at that time became the basis for subsequent rate reviews.
Rate Structure Principles
Most significantly, each agency has adopted different rate structure principles to recover similar costs. For example, Pismo Beach has adopted a rate structure for its residential customers that more closely reflects a “pay-as-you-throw” philosophy under which the “per gallon” costs for 32, 64 and 96 gallon containers are the same (for example, a 64-gallon container costs twice as much as a 32-gallon one.) This results in lower monthly costs for 32-gallon customers and relatively higher rates for 64 and 96-gallon customers.
On the other hand, Arroyo Grande has adopted rates that do not have as much difference between container sizes (but still offer an incentive for smaller containers over larger ones), recognizing collection economies of scale for larger versus smaller containers. In this case, 32- gallon containers in Arroyo Grande are more expensive than in Pismo Beach, but 64-gallon containers are less.
Both rate structures have their strong points: in the case of Pismo Beach, rates are more reflective of disposal costs, whereas in Arroyo Grande they are more reflective of collection costs. But the important point is that the revenue generating capability is the same even though the rates are different.
Multi-Family and Non-Residential Rates
Lastly, multi-family and non-residential rates (which account for about 40% of SCSS revenues) are similar in all four agencies: it is only in single family residential rates that there are significant differences between communities.
COST ACCOUNTING ISSUES
As noted above, SCSS’s financial operations for Arroyo Grande, Grover Beach, Oceano and Pismo Beach are closely related. Keeping costs and revenues segregated is further complicated
Solid Waste Rate Review
- 19 -
by the fact that SCSS is a subsidiary of Waste Connections US (which acquired the parent company in April 2002), which shares ownership with the following local companies:
• San Luis Garbage Company
• Mission Country Disposal
• Morro Bay Garbage Service
• Coastal Roll-Off Service
• Cold Canyon Land Fill
• Cold Canyon Processing Facility
Additionally, within the South County, SCSS’s service area includes:
• City of Arroyo Grande
• City of Grover Beach
• City of Pismo Beach
• Oceano Community Services District
• Nipomo Community Services District
• Avila Beach Community Services District
• Other unincorporated areas in the South County such as rural Arroyo Grande Cost Accounting System
Audited financial statements are prepared for each company within Waste Connections’ central coast operations by an independent certified public accountant; and SCSS’s auditors have consistently issued “clean opinions” on its financial operations. However, only direct labor hours for collection (and related compensation), liability insurance, franchise fees and revenues are directly accounted for each company (like SCSS); and then within each agency serviced by it. As summarized below for major cost categories, all other costs are allocated between companies based on apportionments using generally accepted accounting principles:
Table 10. Cost Allocation Bases
Allocation Basis Major Cost Categories
Customer counts • Region and division overhead
• Office salaries
• Office expense
• Legal and accounting
Direct labor hours • Truck depreciation
• Truck repairs and tires
• Mechanic labor
• Gas and oil
Tonnage Disposal costs
• Landfill
• MRF/recycling
• Greenwaste
Solid Waste Rate Review
- 20 -
Revenue • Corporate overhead (adjusted for Rate Manual limitations) • Bad debt expense
• Other taxes
Containers • Container depreciation
• Container labor
• Container repairs
Gallons • Diesel fuel
These allocation bases seem reasonable. However, they are subject to periodic change as determined by Waste Connections. Since these apportionments are a key basis for rate setting, the bases of allocation for each cost category (including allocations of regional and district overhead and accounting for direct costs) should be established in an updated Rate Manual.
COST OF LIVING “TRIGGER OPTION”
As noted above, Section 8.3 of the Franchise Agreements provides that if the rate increase request compared with the rate in effect at the date of the agreement exceeds the cumulative cost of living increase from that same date, each agency has the option of terminating the agreement at any time within nine months following approval of the requested rate increase. While this provision does not directly limit rate increase requests by SCSS to an amount that may be less than that allowed under the rate-setting methodology, subjecting the Franchise Agreement to possible termination if the rate request is greater than the cost of living threshold provides a strong incentive for SCSS to do so, if possible.
Calculation of the Cost of Living Threshold
As recommended in the 2013 Interim Year rate review for consistency and clarity, the CPI-U rate increases used in calculating Interim Year increases and the “trigger” threshold are based on changes from June to June (given application submittal targets, this was the most recent date that would consistently be available).
Along with the adjustment for the “weighted” greenwaste rate increase in 2012 of 1.7% previously approved, the 2016 Franchise Agreement amendments provided for adjustments to the threshold “trigger” of landfill rate increases, weighted by the ratio of landfill costs to total costs (assumed at 25% based on recent trends).
• Table 11(a) provides the threshold calculation compared with actual rate increases and those recommended for 2022.
• Table 11(b) provides landfill rates since 2008.
As reflected in Table 11(a), the cumulative changes in the cost of living (with adjustments for greenwaste and landfill cost increases) is 34.87%. This compares with cumulative rate increases, including those recommended of 22.19% for 2022 (21.03% for Oceano CSD) of 61.76%. This would result in exceeding the “trigger” by 26.89%.
Solid Waste Rate Review
- 21 -
Table 11(a). Trigger Threshold Calculation
Table 11(b). Landfill Rates Per Ton
Increase
Prorated
@
Year Actual Amount Percent 25%
2008 29.25 - 0.00% 0.00%
2009 29.25 - 0.00% 0.00%
2010 29.25 - 0.00% 0.00%
2011 34.25 5.00 17.09% 4.27%
2012 34.25 - 0.00% 0.00%
2013 34.25 - 0.00% 0.00%
2014 36.50 2.25 6.57% 1.64%
2015 38.75 2.25 6.16% 1.54%
2016 41.00 2.25 5.81% 1.45%
2017 41.00 - 0.00% 0.00%
2018 41.00 - 0.00% 0.00%
2019 41.00 - 0.00% 0.00%
2020 41.00 - 0.00% 0.00%
2021 41.00 - 0.00% 0.00%
2022 41.00 - 0.00% 0.00%
Note: Under long-term rate increases approved by the County, Cold Canyon Landfill was eligible for annual rate increases of $2.25 per ton from 2017 to 2022, with a resulting rate of $54.50 by 2022, However, it chose not to do so.
Rate Rate
June Index Amount Percent Greenwaste Landfill (1) Threshold Year Increase (2) 2009 215.693
2010 217.965 2.272 1.05% 4.27% 5.33% 2011 0.00%
2011 225.722 7.757 3.56% 1.70% 0.00% 5.26% 2012 5.15%
2012 229.478 3.756 1.66% 0.00% 1.66% 2013 3.20%
2013 233.504 4.026 1.75% 1.64% 3.40% 2014 2.05%
2014 238.343 4.839 2.07% 1.54% 3.61% 2015 0.00%
2015 238.638 0.295 0.12% 1.45% 1.58% 2016 3.25%
2016 241.018 2.380 1.00% 0.00% 1.00% 2017 1.10%
2017 244.955 3.937 1.61% 0.00% 1.61% 2018 1.61%
2018 251.989 7.034 2.79% 0.00% 2.79% 2019 10.06%
2019 256.143 4.154 1.62% 0.00% 1.62% 2020 1.70%
2020 257.797 1.654 0.64% 0.00% 0.64% 2021 0.70%
2021 271.696 13.899 5.12% 0.00% 5.12% 2022 22.19%
Cumulative Total 56.003 25.96% 1.70% 8.91% 34.87% 61.76% Requested Rate Increase Above Trigger Threshold 26.89%
1. Landfill rate increases prorated at 25% of total costs
2. Recommended rate for 2022, except for Oceano (21.03%) US CPI-U Increase Allowed Adjustments
Solid Waste Rate Review
- 22 -
However, it is important to note that this “trigger” calculation does not limit the allowable rate increase that may be requested under the methodology set forth in the Franchise Agreements or approved by the agencies.
Accordingly, if the proposed rate increases are approved, I recommend that the agencies consider (as they did in as part of the 2019 Base Year review) adopting findings that they will not pursue the “trigger” option.
Rate Manual Update. The merit of continuing with the “trigger option” is another area that should be considered with the Rate Manual update.
COORDINATION WITH OTHER AGENCIES
SCSS has submitted similar rate requests to the three other agencies that regulate rates and services in the other South County areas that it serves: County of San Luis Obispo, Avila Beach Community Services District and the Nipomo Community Services District. These agencies are likely to act on the requested rate increases within the same time frame as the four agencies covered in this report.
Waste Connections (as San Luis Garbage Company) has also submitted a rate increase application to the City of San Luis Obispo of 17.75%, which is scheduled for Council review on April 19, 2022. As Mission County Disposal, it has also submitted initial rate applications for Los Osos and the north coastal areas of about 40%.
SUMMARY
Based on the rate-setting policies and procedures formally adopted by Arroyo Grande, Grover Beach, Oceano and Pismo Beach in their Franchise Agreements, this report concludes that:
• SCSS has submitted the required documentation required under its Franchise Agreements with the four agencies.
• This results in a recommended rate increase of 22.19% in the cities of Arroyo Grande, Grover Beach and Pismo Beach; and 21.03% in the Oceano CSD.
ATTACHMENTS
Appendix A: Base Year Rate Request Application from South County Sanitary Service Appendix B: HZI Greenwaste Digester Cost Analysis
Appendix A
BASE YEAR RATE REQUEST
APPLICATION
1. Base Year Application Summary
• City of Pismo Beach
• City of Arroyo Grande
• City of Grover Beach
• Oceano Community Services District
2. Supporting Schedules
• Financial Information: Cost and Revenue Requirements Summary • Revenue Offset Summary
• Cost Summary for Base Year
• Base Year Revenue Offset Summary
• Operating Information
• Rate Survey
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Summary CITY OF PISMO BEACH
Requested Increase
Digester Expense 6.2%
Capital Purchases 5.9% Market Rate Wage Adjustment 5.6% Commingle Processing Fee 1.9% Other 2.6%
1. Rate Increase Requested 22.19%
Rate Schedule
Current Increased Adjustment New
Rate Schedule Rate Rate (a) Rate
Single Family Residential
2. Economy Service (1 - can curb) $17.31 $3.84 $21.15
4. Standard Service (2- can curb) $34.63 $7.69 $42.32
5. Premium Service (3 - can curb) $51.94 $11.53 $63.47
(a) Calculated rates are rounded up to the nearest $0.01.
6. Multiunit Residential and Non-residential Rate increases of 22.19% will be applied to all rates in each structure
with each rate rounded to the nearest $0.01
Certification
To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual.
Name: Jeff Clarin Title: District Manager
Signature: Date: 10/20/21
Revised 2/18/22
Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 1 of 6
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Summary CITY OF ARROYO GRANDE
Requested Increase
Digester Expense 6.2%
Capital Purchases 5.9% Market Rate Wage Adjustment 5.6% Commingle Processing Fee 1.9% Other 2.6%
1. Rate Increase Requested 22.19%
Rate Schedule
Current Increased Adjustment New
Rate Schedule Rate Rate (a) Rate
Single Family Residential
2. Economy Service (1 - can curb) 19.46 $ $4.32 $23.78
4. Standard Service (2- can curb) 25.29 $ $5.61 $30.90
5. Premium Service (3 - can curb) 31.13 $ $6.91 $38.04
(a) Calculated rates are rounded up to the nearest $0.01.
6. Multiunit Residential and Non-residential Rate increases of 22.19% will be applied to all rates in each structure
with each rate rounded to the nearest $0.01
Certification
To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual.
Name: Jeff Clarin Title: District Manager
Signature: Date: 10/20/21
Revised 2/18/22
Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 1 of 6
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Summary CITY OF GROVER BEACH
Requested Increase
Digester Expense 6.2%
Capital Purchases 5.9% Market Rate Wage Adjustment 5.6% Commingle Processing Fee 1.9% Other 2.6%
1. Rate Increase Requested 22.19%
Rate Schedule
Current Increased Adjustment New
Rate Schedule Rate Rate (a) Rate
Single Family Residential
2. Economy Service (1 - can curb) 17.65 $ $3.92 $21.57
4. Standard Service (2- can curb) 23.85 $ $5.29 $29.14
5. Premium Service (3 - can curb) 30.03 $ $6.66 $36.69
(a) Calculated rates are rounded up to the nearest $0.01.
6. Multiunit Residential and Non-residential Rate increases of 22.19% will be applied to all rates in each structure
with each rate rounded to the nearest $0.01
Certification
To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual.
Name: Jeff Clarin Title: District Manager
Signature: Date: 10/20/21
Revised 2/18/22
Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 1 of 6
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Summary OCEANO COMMUNITY SERVICE DISTRICT
Requested Increase
Digester Expense 6.2%
Capital Purchases 5.9% Market Rate Wage Adjustment 5.6% Commingle Processing Fee 1.9% Other 1.4%
1. Rate Increase Requested 21.03%
Rate Schedule
Current Increased Adjustment New
Rate Schedule Rate Rate (a) Rate
Single Family Residential
2. Economy Service (1 - can curb) 14.98 $ $3.15 $18.13
4. Standard Service (2- can curb) 21.56 $ $4.53 $26.09
5. Premium Service (3 - can curb) 42.19 $ $8.87 $51.06
(a) Calculated rates are rounded up to the nearest $0.01.
6. Multiunit Residential and Non-residential Rate increases of 21.03% will be applied to all rates in each structure
with each rate rounded to the nearest $0.01
Certification
To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual.
Name: Jeff Clarin Title: District Manager
Signature: Date: 10/20/21
Revised 2/18/22
Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 1 of 6
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Current
Financial Information Base Year
2019 2020 2021 2022 2023
(from Pg. 4)
6. Direct Labor $3,258,214 $3,614,140 $3,638,218 $3,922,681 $4,040,361
7. Corporate Overhead $350,343 $356,299 $359,149 $378,184 $389,529
8. Office Salaries $688,788 $768,706 $758,312 $835,736 $859,332
9. Other General and Admin Costs $4,482,056 $4,990,560 $5,899,433 $5,614,771 $7,809,122 10 Total Allowable Costs $8,779,401 $9,729,705 $10,655,112 $10,751,372 $13,098,345
11. Operating Ratio 97.3% 98.2% 103.6% 92.0% 92.0%
12. Allowable Operating Profit $245,196 $179,075 ($366,502) $934,902 $1,138,986
13. Tipping Fees $2,754,458 $2,924,849 $3,012,594 $4,730,341 $2,978,173
14. Franchise Fees $1,482,198 $1,629,121 $1,652,070 $1,454,123 $1,497,747
15. AB939 Fees $0 $0 $0 $0 $0
16. Payments to Affiliated Companies* $281,020 $337,664 $377,981 $438,302 $477,779
17. Total Pass Through Costs $4,517,676 $4,891,634 $5,042,645 $6,622,767 $4,953,699 * Affiliate Payments include interest, lease payments, and transportation
18. Revenue Requirement $13,542,273 $14,800,414 $15,331,255 $18,309,041 $19,191,030
19. Total Revenue Offsets $13,542,273 $14,800,414 $15,331,255 $15,260,678 $15,413,625 (from Page 3)
20. Net Shortfall (Surplus) $3,048,363
21. Total Residential and Non-residential Revenue without increase Oceano Nipomo in Base Year (pg.5, line 76) $15,260,678 $15,260,678 $15,260,678
22. Percent Change in Residential and Non-residential Revenue Requirement 19.98% 19.98% 19.14%
23. Franchise Fee Adjustment Factor (1 - 6 percent) 90.000% 95.000% 90.000%
22.19% 21.03% 21.27%
Limitation due to cumlative increases
24. Percent Change in Existing Rates 22.19% 21.03% 21.27% Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 2 of 6
Section III-Pass Through Costs
Historical Projected
Section I-Allowable Costs
Section II-Allowable Operating Profit
Section III-Pass Through Costs
Section III-Pass Through Costs
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Revenue Offset Summary
Current
Base Year
2019 2020 2021 2022 2023
Residential Revenue (without increase in Base Yr.)
28. Single Family Residential $7,924,043 $8,627,550 $8,780,617 $8,769,933 $8,857,632 Multiunit Residential Dumpster
29. Number of Accounts
30. Revenues
31. Less Allowance for Uncollectible Resi Accounts $0 $0 $0 $0 $0
32. Total Residential Revenue $7,924,043 $8,627,550 $8,780,617 $8,769,933 $8,857,632 Non-residential Revenue (without increase in Base Yr.)
Account Type
Non-residential Can
33. Number of Accounts 11 11 12
34. Revenues $5,513 $5,568 $5,624
Non-residential Wastewheeler
35. Number of Accounts 508 503 513
36. Revenues $544,220 $549,662 $555,159
Non-residential Dumpster
37. Number of Accounts 1,592 1,576 1,608
38. Revenues $5,613,237 $6,171,381 $5,983,795 $5,917,531 $5,976,706
39. Less: Allowance for Uncollectible Non-resid $0 $0 $0 $0 $0
40. Total Non-residential Revenue $5,613,237 $6,171,381 $6,533,528 $6,472,761 $6,537,488
45. Interest on Investments $0 $0 $0 $0 $0
46. Other Income $4,993 $1,483 $17,111 $17,984 $18,505
47. Total Revenue Offsets $13,542,273 $14,800,414 $15,331,255 $15,260,678 $15,413,625 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 3 of 6
Section VII - Revenue Offsets
Historical Projected
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Cost Summary for Base Year
Description of Cost BASE YEAR
2019 2020 2021 2022 2023
Labor $3,020,612 $3,353,557 $3,377,752 $3,642,382 $3,751,654 Payroll Taxes $237,602 $260,583 $260,466 $280,299 $288,708
48. Total Direct Labor $3,258,214 $3,614,140 $3,638,218 $3,922,681 $4,040,361
49. Corporate Overhead $370,263 $387,844 $460,472 $484,877 $499,423 Less limitation (enter as negative) ($19,920) ($31,545) ($101,323) ($106,693) ($109,894) Total Corporate Overhead $350,343 $356,299 $359,149 $378,184 $389,529 Office Salaries $642,368 $722,755 $701,402 $773,471 $795,199 Payroll Taxes - Office $46,420 $45,951 $56,910 $62,265 $64,133
50. Total Office Salaries $688,788 $768,706 $758,312 $835,736 $859,332 Bad Debt $12,541 $12,182 $15,064 $15,064 $15,064
Allocated expenses $0 $0 $0 $0 $0
Bonds expense $6,877 $5,221 $5,153 $5,426 $5,589
Depreciation $406,756 $535,997 $1,129,264 $1,534,705 $1,827,206 Drive Cam fees $21,242 $19,353 $20,599 $21,690 $22,341
Dues and Subscriptions $20,483 $5,793 $19,974 $21,033 $21,664 Facilities $59,584 $43,035 $29,218 $30,766 $31,689
Gas and oil $914,400 $821,425 $947,541 $952,847 $980,712 Insurance $860,855 $1,062,848 $1,225,897 $1,361,460 $1,402,304 Laundry (Uniforms) $33,527 $29,461 $29,837 $31,418 $32,361 Legal and Accounting $43,392 $46,291 $51,310 $53,890 $55,428 Miscellaneous and Other $7,943 $5,614 $5,144 $5,416 $5,579 Office Expense $211,414 $229,923 $254,048 $268,409 $276,461 Operating Supplies $59,319 $83,727 $73,903 $77,820 $80,155 Other Taxes $37,649 $40,287 $39,285 $41,236 $42,399
Outside Services $1,128,991 $1,244,791 $1,231,253 $328,750 $2,120,266 Public Relations and Promotion $5,119 $8,013 $7,639 $7,654 $7,663 Postage $21,635 $8,711 $12,894 $13,578 $13,985
Permits $60,344 $67,486 $92,393 $97,290 $100,208
Relocation $18,530 $30,701 $22,040 $22,040 $22,040
Rent $3,000 $2,250 $11,023 $12,497 $12,872
Telephone $13,294 $36,444 $36,121 $38,035 $39,176
Tires $100,399 $127,834 $144,039 $151,673 $156,223
Travel $27,991 $8,712 $12,431 $13,091 $13,483
Truck Repairs $389,414 $492,848 $464,015 $488,608 $503,266 Utilities $17,357 $21,613 $19,349 $20,375 $20,986
51. Total Other Gen/Admin Costs $4,482,056 $4,990,560 $5,899,433 $5,614,771 $7,809,122
52. Total Tipping Fees $2,754,458 $2,924,849 $3,012,594 $4,730,341 $2,978,173
53. Total Franchise Fee $1,629,121 $1,652,070 $1,454,123 1,497,747.16 1,482,198.00
54. Total AB 939/Regulatory Fees $0 $0 $0 $0 $0
55. Total Lease Pmt to Affil Co.'s $142,332 $170,111 $172,663 $181,814 $187,268 55a. Interest Expense (to affiliate) $87,922 $133,282 $162,043 $213,214 $247,236 55b. Total Transportation to Affil Co.'s $50,766 $34,271 $43,275 $43,275 $43,275
56. Total Cost $13,297,077 $14,621,339 $15,697,757 $17,374,139 $18,052,043 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 4 of 6
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Base Year Revenue Offset Summary For Information Purposes Only Description of Revenue Overall Franchise Refuse Collection Non-franchise Total Total Arroyo Pismo Grover Unincorporated Total
Residential Revenue
(without increase in Base Year)
57. Single Family Residential $8,769,933 $8,769,933 $1,826,861 $1,185,972 $1,173,008 $4,584,092 Multiunit Residential Dumpster
58. Number of Accounts 0 0
59. Revenues $0 $0
60. Less Allowance for Uncollectable $0 $0
61. Total Residential Revenue $8,769,933 $8,769,933 $1,826,861 $1,185,972 $1,173,008 $4,584,092 $0 Non-residential Revenue (without increase in Base Year) Account Type
0.34% 0.35% 33.05% 15.36% 0.00% 0.00%
Non-residential Can
62. Number of Accounts 11 11 5 1 4 2
63. Revenues $5,568 $5,568 $1,416 $280 $1,033 $2,840
Non-residential Wastewheeler 3.4% 0.0%
64. Number of Accounts 503 503 139 136 98 131
65. Revenues $549,662 $549,662 149,429 195,948 84,569 119,716 Non-residential Dumpster 96% 17% 38% 3%
66. Number of Accounts 1,576 1576 402 229 321 625 0
67. Revenues $5,917,531 $5,917,531 $1,577,642 $1,333,364 $828,238 $2,178,286
68. Less: Allowance for Uncollectible
Non-residential Accounts $0 $0
69. Total Non-residential Revenue $6,472,761 $6,472,761 $1,728,486 $1,529,592 $913,840 $2,300,842 $0
74. Interest on Investments $0 $0 $0 $0 $0 $0 $0
75. Other Income $17,984 $0 $0 $0 $0 $0 $17,984
76. Total Revenue Offsets $15,260,678 $15,242,694 $3,555,347 $2,715,564 $2,086,848 $6,884,935 $17,984 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 5 of 6
Section VII-Revenue Offsets
South County Sanitary Service
2022 Base Year Rate Adjustment Application
Operating Information
Percent Percent Percent Base Year Percent
2019 Change 2020 Change 2021 Change 2022 Change 2023
Residential
Accounts
77. Arroyo Grande 5,827 1.1% 5,890 0.6% 5,924 1.0% 5,983 1.0% 6,043 Grover Beach 4,216 0.4% 4,233 0.4% 4,249 1.0% 4,291 1.0% 4,334 Pismo Beach 3,816 0.1% 3,819 0.2% 3,828 1.0% 3,866 1.0% 3,905 Oceano CSD 1,863 0.4% 1,870 1.6% 1,899 1.0% 1,918 1.0% 1,937 Nipomo CSD 4,066 0.8% 4,097 0.9% 4,135 1.0% 4,176 1.0% 4,218 County 6,881 2.2% 7,034 1.4% 7,130 1.0% 7,201 1.0% 7,273 26,669 1.0% 26,943 0.8% 27,165 1.0% 27,437 1.0% 27,711
78. Routes-Garbage 7 26.5% 9 -13.9% 8 0.0% 8 0.0% 8
79. Routes-Recycling 6 26.5% 8 -13.9% 7 0.0% 7 0.0% 7
80. Direct Labor Hours 28,522 26.5% 36,082 -13.9% 31,059 0.0% 31,059 0.0% 31,059 Non-residential Garbage
Accounts
80. Arroyo Grande 490 0.2% 491 0.6% 494 1.0% 499 1.0% 504 Grover Beach 438 0.7% 441 0.5% 443 1.0% 447 1.0% 452
Pismo Beach 386 1.8% 393 -0.5% 391 1.0% 395 1.0% 399
Oceano CSD 190 0.5% 191 0.5% 192 1.0% 194 1.0% 196
Nipomo CSD 214 -2.3% 209 0.0% 209 1.0% 211 1.0% 213
County 508 -5.9% 478 2.5% 490 1.0% 495 1.0% 500
2,226 -1.0% 2,203 0.7% 2,219 1.0% 2,241 1.0% 2,264
81. Routes-garbage 8 26.5% 10 -13.9% 8 0.0% 8 0.0% 8
Routes-recycling 3 26.5% 4 -13.9% 4 0.0% 4 0.0% 4
82. Direct Labor Hours 22,871 26.5% 28,933 -13.9% 24,905 0.0% 24,905 0.0% 24,905 Recyclable Materials - All areas-Commingled Recycling (in tons) Accounts
83. Tons Collected 13,275 -4.0% 12,740 3.0% 13,123 3.0% 13,516 1.0% 13,651 Recyclable Materials - All areas-Greenwaste Recycling
Routes 5 26.5% 7 -13.9% 6 0.0% 6 0.0% 6
Tons Collected 13,631 -0.9% 13,511 3.0% 13,916 3.0% 14,334 1.0% 14,477 Direct Labor Hours 10,934 26.5% 13,833 -13.9% 11,907 0.0% 11,907 0.0% 11,907 Garbage Tons Collected 43,020 -3.5% 41,507 3.0% 42,752 3.0% 44,034 1.0% 44,475 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 6 of 6
Historical Current Projected
Section IX-Operating Data
Rate Comparisons for Garbage Service
Service Size
Pismo
Beach 1
South County
Urban 1
Arroyo
Grande 1 Atascadero Templeton San Miguel
Paso
Robles2
City of Santa
Maria 3,4
Santa Barbara
County (Northern)4 City of Santa Barbara
20 Gallon
35 Gallon $ 17.31 $ 25.60 $ 19.46 $ 28.55 $ 31.40 $ 28.33 $ 30.90 $ 25.84 $ 45.30 65 Gallon $ 34.63 $ 34.04 $ 25.29 $ 44.50 $ 45.01 $ 44.48 $ 51.12 30.69 $ 27.89 $ 56.15 95 Gallon $ 51.94 $ 47.46 $ 31.13 $ 55.77 $ 45.95 $ 61.06 $ 57.25 34.81 $ 29.86 $ 67.00 2 yard (1X WK) $ 120.91 $ 129.25 $ 122.10 $ 146.79 $ 129.54 $ 103.98 $ 168.68 166.72 $ 167.72 $ 248.79 Notes:
1 Scheduled increases in 1/1/2022
2 Paso Robles does 40 gallon cart pricing
3 65 gallon Scheduled to increase to $32.70 in 1/1/22 and $34.71 in 7/1/22, and 95 gallon Scheduled to increase to $38.07 in 1/1/22 and $41.34 in 7/1/22 4 Weekly Trash pick-up but every other week recycling and green waste pick-up.
HZI Cost Increase Summary Appendix B
Original
Cost Category Plan 2021 2022 Amount % Comment
Staffing and Administrative Cost
$ 1,592 1,090 $ 1,706 $ 616 $ 57%
Staff operation requirements increased from 3 to 6 team members due to feedstock profile, increased maintenance, equipment change out and operational demands. Additionally salary increases have been necessary to meet CA labor market demands. Administratively pollution insurance was added and audit and legal fees were increased to meet reporting requirements.
O&M Expense
$ 1,747 495 $ 1,439 $ 944 $ 191%
Increased cost due to CHP maintenance increases related to gas cycling, dosing feeder erosion, screw feeder premature erosion, shredder blade erosion and damage due to contamination, digestate pump rebuild frequency due to sand, premature wear and replacement of the decanter, and continued vacuum truck clean out of the sand build-up. Added +250K/year for management of backend products and front end peak loading; Capital Expense
$ 1,945 1,487 $ 1,946 $ 459 $ 31%
Added Capital cost includes Feed Bunker Wall extension, Speed Screen, Fat, Oils, and Grease system, and redundant pumps related to decreased food waste and sand issues in the CA environment Total Cost 3,072 $ 5,284 $ 5,091 $ 2,019 $ -
Total Service Fee $ 1,779 1,749 $ 3,861 $ 2,082 $ 119%
Increase requested equates closely to cost increase seen since original plan of monthly service fees Change $ (3,505) (1,323) $ (1,230) $ 63 $
Variance
Notice of Public Hearing Regarding
Proposed Solid Waste Rate Increase
Property Owners and Tenants - Customers:
This notice is intended to inform you that the City of Arroyo Grande South County Sanitary Service (the
within the City. The Proposed Rate Increase will be considered by the Council at the date, time, and location specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the following information:
The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.
NOTICE OF PUBLIC HEARING
The Public Hearing for the Proposed Rate Increase within the City limits will be held on:
Date: June 14, 2022 Time: 6:00 pm
Place: Arroyo Grande City Council Chambers, 215 East Branch St. Arroyo Grande, CA At the Public Hearing, the City Council will consider all public comment in support of and in opposition to the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California Constitution (as described below). If approved, the Proposed Rate Increase would become effective on June 15, 2022.
Reason for the Proposed Rate Increase
The Proposed Rate Increase is 22.19 percent for solid waste, recycling, and green waste/organics collection services. In addition, there will be a temporary 11.95 percent increase to recover revenue lost due to this rate increase being delayed from March 1, 2022 to June 15, 2022. This recovery component will expire January 1, 2023. The increase is necessary for the Garbage Company to continue to provide safe, environmentally sound, and reliable solid waste, recycling, green waste/organics collection, transportation and disposal/processing services to the citizens of the City. Several factors contributed to this rate increase including, but not limited to: increased costs associated with the purchase and operation of collection vehicles, fuel costs, labor costs, and increased costs associated with the organics digester facility.
The organics digester facility is required by California Senate Bill 1383 (SB 1383), and previously approved California Assembly Bill 1826 (AB 1826). SB 1383 is a recent state law passed with the goal of reducing methane. Methane is a potent greenhouse gas, with more than 80 times the warming power of carbon dioxide, and is a major component of decomposing organic waste. In response to the harmful effects of methane gas, Cal Recycle (a branch of the California Environmental Protection Agency) adopted regulations implementing SB 1383 in the fall of 2020. Key components of SB 1383 include implementing organic waste collection programs (including food waste), monitoring organics carts for contamination, and reporting data. specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.
NOTICE OF PUBLIC HEARING
The Public Hearing for the Proposed Rate Increase within the City limits will be held on:
June 14, 2022 Time: 6:00 pm
e City Council Chambers, 215 East Branch St. Arroyo Grande, CA At the Public Hearing, the City Council will consider all public comment in support the Proposed Rate Increase and whether or not a Majority Protest exist Constitution (as described below). If approved, the Proposed Rate Increase would become effective on Reason for the Proposed Rate Increase
Proposed Rate Increase is Proposed Rate Increase is 22.19 percent for solid waste, recycl services. In addition, there will be a temporary
increase being delayed from March 1, 2022 to from March 1, 2022 to s necessary for the Garbage Company to continue to provide safe, environmentally sound, recycling, green waste/organics collection, transportation and disposal/processing to the citizens of the City. Se
ATTACHMENT 2
AB 1826 requires local jurisdictions to develop a program to divert organic waste from landfills to an authorized composting facility like an anaerobic digester.
Basis of the Proposed Rate Increase
The Proposed Rate Increase of 22.19 percent is based on the following cost increases incurred by the Garbage Company:
1. 5.88 percent of the Proposed Rate Increase is for capital investment costs of new collection vehicles, replacement containers and additional containers to meet the demands of SB 1383 compliance.
2. 6.20 percent of the Proposed Rate Increase is for increased capital equipment investments and escalating operating expenses related to the Anaerobic Digester.
3. 5.63 percent of the Proposed Rate Increase is for market wage adjustments to attract and retain safe, quality employees.
4. 1.88 percent of the Proposed Rate Increase is for increases the commingle processing fee
5. 2.60 percent of the Proposed Rate Increase is for increases in other operational expenses The additional temporary 11.95 percent recovery rate increase is for the delayed rate implementation that was no fault of the Garbage Company. The total rate increase implemented June 15, 2022 will be
34.14 percent. The temporary 11.95 percent recovery rate increase will expire January 1, 2023, net of any Consumer Price Index adjustment as discussed next.
In addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the following:
1. Price Index for Urban Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024.
The January 1, 2023 CPI rate adjustment will be applied after the 11.95 percent recovery rate increase is removed.
At the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account for operational and capital cost increases due largely to tasks associated with the implementation of SB 1383. These include the following tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and record keeping programs; establishing, administering, and implementing the edible food recovery requirements; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers, and issuing educational notices where necessary and/or appropriate; and required reporting to CalRecycle. The adopted fee will be effective on July 1, 2022. The City has authorized the Garbage Company to bill this additional fee on behalf of the IWMA.
The IWMA is a Joint Powers Authority formed to plan and implement regional solid waste and hazardous waste programs mandated by State law. The Joint Powers Agreement between the City of Arroyo Grande and the IWMA can be made available by the City upon request or on the IWMA website at www.iwma.com.
A copy of the 2022 Base Year Rate Adjustment Application, which provides additional information on the 300 East Branch St., Arroyo Grande,
California.
for increased capital equipment investments
and escalating operating expenses related to the Anaerobic Digester. percent of the Proposed Rate Increase is for market wage adjustments to attract and the Proposed Rate Increase is for increases the commingle processing fee or increases in other operational expenses
percent recovery rate increase is for the delayed rate implementati that was no fault of the Garbage Company. The total rate increase implemented June 15 percent recovery rate increase will expire January 1, 2023, net of ussed next.
addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2022 for January 1, 2023 and June 2023 for Ja The January 1, 2023 CPI rate adjustment will be applied after the crease is removed.
t the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account for operational and capital cost increases due largely to tasks associated with the implementati tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and record keeping programs; establishing, administering, and implementing the edible food ; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers, and issuing educational notices where necessary and/or appropriate; and r
1, 2022. The City has authorized the Garbage Company to bill this
How Do I Protest the Proposed Rate Increase?
Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest against the Proposed Rate Increase to the City Clerk before the close of the Public Hearing referenced above.
An owner(s) of property (parcel(s)) receiving solid waste, recycling, and green waste services within the City limits. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain or be accompanied by written evidence that such person signing the protest is the owner of the parcel(s) receiving services;
or
the corresponding parcel receiving solid waste, recycling, and green waste services within the City limits (tenant-customer).
A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or r (APN) of the parcel or parcels which receive solid waste, recycling, and green waste services, and a signature by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subject to the requirements of Section 6 of Article XIII D of the California Constitution. Written protests will not be accepted by e-mail or by facsimile. Verbal protests will not be counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the City Clerk before the close of the Public Hearing referenced above.
Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande, CA 93420
Written protests may also be personally delivered to the City Clerk located at 300 East Branch Street, Arroyo Grande, California.
If valid written protests are presented by a majority of owners and/or tenants-customers of parcels receiving solid waste, recycling, and green waste services within the City limits, then the City will not adjust/increase the rates for the services.
green waste services within the
A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or r (APN) of the parcel or parcels which receive solid waste, recycling, and green waste ure by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subj ments of Section 6 of Article XIII D of the California Constitution. Written protests will not be mail or by facsimile. Verbal protests will not be counted in determining the existen protest must be received in writing by the City Clerk before the c Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande,
Written protests may also be personally delivered to the City Clerk California.
If valid written protests are presented by a majority of owne , recycling, and green waste
rates for the services.
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 15, 2022
CITY OF ARROYO GRANDE
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed
Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
RESIDENTIAL:
32 Gallon Waste Wheeler 1 $19.46 $6.64 $26.10
64 Gallon Waste Wheeler 1 $25.29 $8.63 $33.92
96 Gallon Waste Wheeler 1 $31.13 $10.63 $41.76
TWO-64 Gallon Waste Wheelers 1 $36.98 $12.63 $49.61
ONE 64 & ONE 96 Gallon 1 $42.84 $14.63 $57.47
TWO-96 Gallon Waste Wheelers 1 $48.67 $16.62 $65.29
Residential customers must use the waste wheelers provided by the garbage company. This solid service fee for residential trash collections (container with black or gray lid) includes once a week pick-up of one greenwaste/organics container (green lid), and one recycling container (blue lid).
MISCELLANEOUS CHARGES - ALL
CUSTOMERS:
Overstacked Garbage & extra bags
Minimum/unit each $5.51 $1.88 $7.39
Overstacked Greenwaste & extra
bags Minimum/unit each $2.77 $0.95 $3.72
Overstacked Blue Bin & extra bags
Minimum/unit each $1.55 $0.53 $2.07
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE RATES per month $13.76 $4.70 $18.45
Monthly charge for additional 96-
gallon green waste service per month $3.80 $1.30 $5.10
Extended Vacation Service per month $15.78 $5.39 $21.17 Vacant Rate per month $15.78 $5.39 $21.17
Waste wheeler cleaning each time $20.52 $7.01 $27.53
Trip charge each time $33.07 $11.29 $44.36
Non-payment downsize service each time $33.07 $11.29 $44.36 Non-payment redeliver waste
wheeler each time $33.07 $11.29 $44.36
Non-payment reconnect service each time $33.07 $11.29 $44.36 Small item pickup (TV, toilet) each $32.27 $11.02 $43.29 Appliance pickup-residential each $45.51 $15.54 $61.05
Garbage extras on your scheduled
pickup day per yard $11.62 $3.97 $15.59
Garbage extras -NOT ON YOUR
SCHEDULED PICKUP DAY per yard $31.25 $10.67 $41.92
Re-deliver bin on stopped acct each time $39.44 $13.47 $52.91 $8.63
$10.63
$12.63
$42.84 $14.63
$48.67 $16.62
ust use the waste wheelers provided by the garbage company. This solid service fee for residential trash collections (container with black or gray lid) includes once a week pick d one recycling container (blue lid).
each $5.51
each $2.77
Overstacked Blue Bin & extra bags
each
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE RATES per month
charge for additional 96-
gallon green waste service per month
Extended Vacation Service per month
Vacant Rate
Waste wheeler cleaning
downsize service
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed
Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
Stand by time per hour $66.60 $22.74 $89.34
Tax Lien Cert. Mail Fee $4.05 $1.38 $5.43
City Clean Up $11.28 $3.85 $15.13
Extra bin cleaning $61.55 $21.02 $82.57
Damage/Destruction of bins or
waste wheelers by quote only
Larger than residential appliance or
glass, glass doors, or plate glass by quote only
Short Term Dumpsters:
Delivery & Pickup-Bin $39.46 $13.47 $52.93
Delivery & Pickup-Waste Wheeler $13.76 $4.70 $18.46
Rental Per Day $2.92 $1.00 $3.92
Empties Per Yard $31.25 $10.67 $41.92
Mattress:
Twin Each $17.91 $6.12 $24.03
Double Each $17.91 $6.12 $24.03
Queen Each $17.91 $6.12 $24.03
King Each $17.91 $6.12 $24.03
ADDITIONAL INFORMATION ALL CUSTOMERS:
1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates
2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container.
3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose.
4. Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day.
5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings.
6. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill.
7. Customers can be responsible for contamination fees
Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate.
$39.46 $13.47
$13.76 $4.70
$2.92 $1.00
$31.25 $10.67
$17.91
Each $17.91
Each $17.91
Each $17.91
INFORMATION ALL CUSTOMERS:
Customers requesting Temporary Bins or Roll-off Box Service can call rofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container.
It is encouraged to bag your trash in the garbage container but do not bag your re their respective containers and keep it loose.
Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles lboxes, cars, etc) before 6:00am on collection service d The fee schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings.
Late Fees are imposed for resident
outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the Customers can be responsible for
Notice of Public Hearing Regarding
Proposed Solid Waste Rate Increase
Property Owners and Tenants - Customers:
This notice is intended to inform you that the City of Arroyo Grande (the South County Sanitary Service (the
within the City. The Proposed Rate Increase will be considered by the Council at the date, time, and location specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the following information:
The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.
NOTICE OF PUBLIC HEARING
The Public Hearing for the Proposed Rate Increase within the City limits will be held on:
Date: June 14, 2022 Time: 6:00 pm
Place: Arroyo Grande City Council Chambers, 215 East Branch St. Arroyo Grande, CA At the Public Hearing, the City Council will consider all public comment in support of and in opposition to the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California Constitution (as described below). If approved, the Proposed Rate Increase would become effective on June 15, 2022.
Reason for the Proposed Rate Increase
The Proposed Rate Increase is 22.19 percent for solid waste, recycling, and green waste/organics collection services. In addition, there will be a temporary 11.95 percent increase to recover revenue lost due to this rate increase being delayed from March 1, 2022 to June 15, 2022. This recovery component will expire January 1, 2023. The increase is necessary for the Garbage Company to continue to provide safe, environmentally sound, and reliable solid waste, recycling, green waste/organics collection, transportation and disposal/processing services to the citizens of the City. Several factors contributed to this rate increase including, but not limited to: increased costs associated with the purchase and operation of collection vehicles, fuel costs, labor costs, and increased costs associated with the organics digester facility.
The organics digester facility is required by California Senate Bill 1383 (SB 1383), and previously approved California Assembly Bill 1826 (AB 1826). SB 1383 is a recent state law passed with the goal of reducing methane. Methane is a potent greenhouse gas, with more than 80 times the warming power of carbon dioxide, and is a major component of decomposing organic waste. In response to the harmful effects of methane gas, Cal Recycle (a branch of the California Environmental Protection Agency) adopted regulations implementing SB 1383 in the fall of 2020. Key components of SB 1383 include implementing organic waste collection programs (including food waste), monitoring organics carts for contamination, and reporting data. specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.
NOTICE OF PUBLIC HEARING
The Public Hearing for the Proposed Rate Increase within the City limits will be held on:
14, 2022 Time: 6:00 pm
de City Council Chambers, 215 East Branch St. Arroyo Grande, CA At the Public Hearing, the City Council will consider all public comment in support the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to Constitution (as described below). If approved, the Proposed Rate Increase would become effective on Reason for the Proposed Rate Increase
Proposed Rate Increase is 22.19 percent for solid waste, recycling, and green w services. In addition, there will be a tempo
increase being delayed from March 1, 2022 to
is necessary for the Garbage Company to continue to provide safe, environmentally sound, recycling, green waste/organics collection, transportation and disposal/processing services to the citizens of the City. Several factors c
AB 1826 requires local jurisdictions to develop a program to divert organic waste from landfills to an authorized composting facility like an anaerobic digester.
Basis of the Proposed Rate Increase
The Proposed Rate Increase of 22.19 percent is based on the following cost increases incurred by the Garbage Company:
1. 5.88 percent of the Proposed Rate Increase is for capital investment costs of new collection vehicles, replacement containers and additional containers to meet the demands of SB 1383 compliance.
2. 6.20 percent of the Proposed Rate Increase is for increased capital equipment investments and escalating operating expenses related to the Anaerobic Digester.
3. 5.63 percent of the Proposed Rate Increase is for market wage adjustments to attract and retain safe, quality employees.
4. 1.88 percent of the Proposed Rate Increase is for increases the commingle processing fee
5. 2.60 percent of the Proposed Rate Increase is for increases in other operational expenses The additional temporary 11.95 percent recovery rate increase is for the delayed rate implementation that was no fault of the Garbage Company. The total rate increase implemented June 15, 2022 will be
34.14 percent. The temporary 11.95 percent recovery rate increase will expire January 1, 2023, net of any Consumer Price Index adjustment as discussed next.
In addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the following:
1. Price Index for Urban Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024.
The January 1, 2023 CPI rate adjustment will be applied after the 11.95 percent recovery rate increase is removed.
At the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account for operational and capital cost increases due largely to tasks associated with the implementation of SB 1383. These include the following tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and record keeping programs; establishing, administering, and implementing the edible food recovery requirements; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers, and issuing educational notices where necessary and/or appropriate; and required reporting to CalRecycle. The adopted fee will be effective on July 1, 2022. The City has authorized the Garbage Company to bill this additional fee on behalf of the IWMA.
The IWMA is a Joint Powers Authority formed to plan and implement regional solid waste and hazardous waste programs mandated by State law. The Joint Powers Agreement between the City of Arroyo Grande and the IWMA can be made available by the City upon request or on the IWMA website at www.iwma.com.
A copy of the 2022 Base Year Rate Adjustment Application, which provides additional information on the 300 East Branch St., Arroyo Grande,
California.
s for increased capital equipment investments
and escalating operating expenses related to the Anaerobic Digester.
5.63 percent of the Proposed Rate Increase is for market wage adjustments to attract and f the Proposed Rate Increase is for increases the commingle processing fee percent of the Proposed Rate Increase is for increases in other operational expenses percent recovery rate increase is for the delayed rate implementat that was no fault of the Garbage Company. The total rate increase implemented June 15 percent recovery rate increase will expire January 1, 2023, net of any Consumer Price Index adjustment as discussed next.
n addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the Consumers based on the All U
Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024.
The January 1, 2023 CPI rate adjustment will be applied after the rate increase is removed.
At the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account increases due largely to tasks associated with the implementation of SB 1383. tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and ng programs; establishing, administering, and implementing the edible food recovery requirements; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers necessary and/or appropriate; and required reporting to CalRecycle. 1, 2022. The City has authorized the Garbage Company to bill this
How Do I Protest the Proposed Rate Increase?
Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest against the Proposed Rate Increase to the City Clerk before the close of the Public Hearing referenced above.
An owner(s) of property (parcel(s)) receiving solid waste, recycling, and green waste services within the City limits. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain or be accompanied by written evidence that such person signing the protest is the owner of the parcel(s) receiving services;
or
the corresponding parcel receiving solid waste, recycling, and green waste services within the City limits (tenant-customer).
A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or ste, recycling, and green waste
services, and a signature by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subject to the requirements of Section 6 of Article XIII D of the California Constitution. Written protests will not be accepted by e-mail or by facsimile. Verbal protests will not be counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the City Clerk before the close of the Public Hearing referenced above.
Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande, CA 93420
Written protests may also be personally delivered to the City Clerk located at 300 East Branch Street, Arroyo Grande, California.
If valid written protests are presented by a majority of owners and/or tenants-customers of parcels receiving solid waste, recycling, and green waste services within the City limits, then the City will not adjust/increase the rates for the services.
green waste services within the
A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or ste, recycling, and green waste
services, and a signature by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subject to ements of Section 6 of Article XIII D of the California Constitution. Written protests will not be mail or by facsimile. Verbal protests will not be counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the City Clerk before the close of the Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande,
Written protests may also be personally delivered to the City Clerk California.
If valid written protests are presented by a majority of owners and/or tenants , recycling, and green waste
rates for the services.
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 15, 2022
CITY OF ARROYO GRANDE
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
APARTMENTS, TRIPLEX, DUPLEX
Rates are the same as commercial rates (below).
COMMERCIAL DUMPSTERS - ALL AREAS:
1 yd dumpster 1 $96.13 $32.82 $128.95
1 yd dumpster 2 $140.24 $47.88 $188.12
1 yd dumpster 3 $184.40 $62.96 $247.36
1 yd dumpster 4 $236.32 $80.69 $317.01
1 yd dumpster 5 $277.84 $94.87 $372.71
1 yd dumpster 6 $329.80 $112.61 $442.41
1 yd dumpster 7 $400.86 $136.87 $537.73
1.5 yd dumpster 1 $109.10 $37.25 $146.35
1.5 yd dumpster 2 $168.81 $57.64 $226.45
1.5 yd dumpster 3 $238.96 $81.59 $320.55
1.5 yd dumpster 4 $311.63 $106.40 $418.03
1.5 yd dumpster 5 $379.18 $129.47 $508.65
1.5 yd dumpster 6 $428.52 $146.32 $574.84
1.5 yd dumpster 7 $501.77 $171.33 $673.10
2 yd dumpster 1 $122.10 $41.69 $163.79
2 yd dumpster 2 $205.17 $70.05 $275.22
2 yd dumpster 3 $290.89 $99.32 $390.21
2 yd dumpster 4 $384.34 $131.23 $515.57
2 yd dumpster 5 $475.25 $162.27 $637.52
2 yd dumpster 6 $532.40 $181.79 $714.19
2 yd dumpster 7 $619.02 $211.36 $830.38
3 yd dumpster 1 $145.41 $49.65 $195.06
3 yd dumpster 2 $275.28 $93.99 $369.27
3 yd dumpster 3 $384.34 $131.23 $515.57
3 yd dumpster 4 $501.19 $171.13 $672.32
3 yd dumpster 5 $594.70 $203.06 $797.76
3 yd dumpster 6 $708.98 $242.08 $951.06
3 yd dumpster 7 $905.52 $309.19 $1,214.71
$32.82
$47.88
$62.96 $247.36
$80.69 $317.01
$277.84 $94.87 $372.71
$329.80 $112.61
$400.86 $136.87
$109.10 $37.25
$168.81
3 $238.96
4 $311.63
5 $379.18
6 $428.52
7 $501.77
2 yd dumpster 1
2 yd dumpster 2
2 yd dumpster 3
2 yd dumpster 4
2 yd dumpster
2 yd dumpster
2 yd dumpster
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
4 yd dumpster 1 $181.81 $62.08 $243.89
4 yd dumpster 2 $322.02 $109.95 $431.97
4 yd dumpster 3 $462.25 $157.83 $620.08
4 yd dumpster 4 $594.70 $203.06 $797.76
4 yd dumpster 5 $734.95 $250.95 $985.90
4 yd dumpster 6 $872.60 $297.95 $1,170.55
4 yd dumpster 7 $1,111.28 $379.44 $1,490.72
6 yd dumpster 1 $272.72 $93.12 $365.84
6 yd dumpster 2 $483.05 $164.94 $647.99
6 yd dumpster 3 $693.36 $236.75 $930.11
6 yd dumpster 4 $892.08 $304.60 $1,196.68
6 yd dumpster 5 $1,102.41 $376.41 $1,478.82
6 yd dumpster 6 $1,308.92 $446.93 $1,755.85
6 yd dumpster 7 $1,666.92 $569.16 $2,236.08
8 yd dumpster 1 $363.61 $124.15 $487.76
8 yd dumpster 2 $644.05 $219.91 $863.96
8 yd dumpster 3 $924.49 $315.66 $1,240.15
8 yd dumpster 4 $1,189.43 $406.13 $1,595.56
8 yd dumpster 5 $1,469.91 $501.90 $1,971.81
8 yd dumpster 6 $1,745.22 $595.90 $2,341.12
8 yd dumpster 7 $2,222.57 $758.89 $2,981.46
The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning.
COMMERCIAL GARBAGE CANS - ALL AREAS:
32 Gallon Waste Wheeler 1 $23.37 $7.98 $31.35
32 Gallon Waste Wheeler 2 $49.34 $16.85 $66.19
32 Gallon Waste Wheeler 3 $57.15 $19.51 $76.66
32 Gallon Waste Wheeler 4 $72.69 $24.82 $97.51
64 Gallon Waste Wheeler 1 $49.34 $16.85 $66.19
64 Gallon Waste Wheeler 2 $65.57 $22.39 $87.96
64 Gallon Waste Wheeler 7 $195.92 $66.90 $262.82
96 Gallon Waste Wheeler 1 $57.15 $19.51 $76.66
96 Gallon Waste Wheeler 2 $96.13 $32.82 $128.95
96 Gallon Waste Wheeler 3 $121.02 $41.32 $162.34
96 Gallon Waste Wheeler 4 $146.21 $49.92 $196.13
96 Gallon Waste Wheeler 5 $164.63 $56.21 $220.84
96 Gallon Waste Wheeler 7 $224.61 $76.69 $301.30
64 Gallon Waste Wheeler
64 Gallon Waste Wheeler
$379.44
$93.12
$164.94 $647.99
$693.36 $236.75 $930.11
$892.08 $304.60 $1,196.68
$1,102.41 $376.41
$1,308.92 $446.93
$1,666.92 $569.16
$363.61
2 $644.05
3 $924.49
4 $1,189.43
5 $1,469.91
6 $1,745.22
8 yd dumpster 7
The rates shown above include the monthly container rental fee and a semi COMMERCIAL GARBAGE CANS - ALL AREAS:
32 Gallon Waste Wheeler 1
32 Gallon Waste Wheeler
Gallon Waste Wheeler
32 Gallon Waste Wheeler
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
COMMERCIAL - OTHER CHARGES:
Rates for all commercial customers include recycling or greenwaste/organics pickup once per week, included with the garbage service rate. Customers can choose from a 64 or 96 gallon blue commingled recycle waste wheeler or a 32 or 64 gallon organics waste wheeler included with the garbage service rate (96 gallon waste wheelers can only be used with green waste due to weight). If you need a bin for recycling there is a charge (see below).
If you need more frequent recycling, including organics/greenwaste service, it can be provided at a 50% discount from the garbage service rates for the specified level of service required.
MISCELLANEOUS CHARGES - ALL CUSTOMERS:
Overstacked Garbage & extra
bags Minimum/unit each $5.51 $1.88 $7.39
Overstacked Greenwaste &
extra bags Minimum/unit each $2.77 $0.95 $3.72
Overstacked Blue Bin & extra
bags Minimum/unit each $2.91 $0.99 $3.90
Xtra Recycle 32, 64, or 96
waste wheelers per month $1.55 $0.53 $2.08
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE
RATES per month $13.76 $4.70 $18.46
Monthly charge for additional
96-gallon green waste service per month $3.80 $1.30 $5.10 Extended Vacation Service per month $12.82 $4.38 $17.20 Vacant Rate per month $15.79 $5.39 $21.18
Waste wheeler cleaning each time $20.52 $7.01 $27.53
Trip charge each time $13.76 $4.70 $18.46
Non-payment downsize
service each time $13.76 $4.70 $18.46
Non-payment redeliver waste
wheeler each time $13.76 $4.70 $18.46
Non-payment reconnect
service each time $33.07 $11.29 $44.36
Small item pickup (TV, toilet) each $32.27 $11.02 $43.29 Appliance pickup-residential each $45.51 $15.54 $61.05
Lock Charge $7.66 $2.62 $10.28
Garbage extras on your
scheduled pickup day per yard $11.62 $3.97 $15.59
Garbage extras -NOT ON
YOUR SCHEDULED
PICKUP DAY per yard $31.25 $10.67 $41.92
Commercial Waste Wheeler
rent per month $4.26 $1.45 $5.71
Small item pickup (TV, toilet)
at a 50% discount from the garbage service rates for the specified level of service required. $1.88
$2.77 $0.95 $3.72
$2.91 $0.99
$1.55 $0.53
per month $13.76
gallon green waste service per month $3.80
Vacation Service per month $12.82
per month
Waste wheeler cleaning each time
each time
payment downsize
each time
payment redeliver waste
each time
payment reconnect
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
Re-deliver bin on stopped
acct each time $39.44 $13.47 $52.91
Large Compactor (> 4 yards) per yard $16.90 $5.77 $22.67 Small Compactors (4 yards &
below)
assume 3 to 1
compaction
3 times the
garbage rate
Sunday Service (in additional
to garbage service level) per month $68.87 $23.52 $92.39 Recycle bin rental per month $7.66 $2.62 $10.28
Stand by time per hour $66.28 $22.63 $88.91
Extra bin cleaning $61.55 $21.02 $82.57
Larger than residential
appliance by quote only
Damage/Destruction of bins
or waste wheelers by quote only
Short Term Dumpsters:
Delivery & Pickup-Bin $39.46 $13.47 $52.93
Delivery & Pickup-Waste
Wheeler $13.76 $4.70 $18.46
Rental Per Day $2.92 $1.00 $3.92
Empties Per Yard $31.25 $10.67 $41.92
Mattress:
Twin Each $17.91 $6.12 $24.03
Double Each $17.91 $6.12 $24.03
Queen Each $17.91 $6.12 $24.03
King Each $17.91 $6.12 $24.03
ADDITIONAL INFORMATION ALL CUSTOMERS:
1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates
2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash.
Please bag Styrofoam packing peanuts before placing in trash container.
3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose.
4. Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day.
5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings.
6. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill.
7. Customers can be responsible for contamination fees
Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate.
$23.52
$2.62
$22.63
$21.02 $82.57
by quote only
by quote only
$39.46 $13.47
$13.76
Per Day $2.92
Per Yard $31.25
Each $17.91
Each
Each
Each
ADDITIONAL INFORMATION ALL CUSTOMERS:
Customers requesting Temporary Bins or Roll
Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash.
Please bag Styrofoam packing peanuts before placing in trash container.
It is encouraged to bag your trash in the garbage conta in their respective containers and keep it loose.
Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:
Notice of Public Hearing Regarding
Proposed Solid Waste Rate Increase
Property Owners and Tenants - Customers:
This notice is intended to inform you that the City of Arroyo Grande South County Sanitary Service (the
within the City. The Proposed Rate Increase will be considered by the Council at the date, time, and location specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the following information:
The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.
NOTICE OF PUBLIC HEARING
The Public Hearing for the Proposed Rate Increase within the City limits will be held on:
Date: June 14, 2022 Time: 6:00 pm
Place: Arroyo Grande City Council Chambers, 215 East Branch St. Arroyo Grande, CA At the Public Hearing, the City Council will consider all public comment in support of and in opposition to the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California Constitution (as described below). If approved, the Proposed Rate Increase would become effective on June 15, 2022.
Reason for the Proposed Rate Increase
The Proposed Rate Increase is 22.19 percent for solid waste, recycling, and green waste/organics collection services. In addition, there will be a temporary 5.12 percent increase to recover revenue lost due to this rate increase being delayed from May 1, 2022 to June 15, 2022. This recovery component will expire January 1, 2023. The increase is necessary for the Garbage Company to continue to provide safe, environmentally sound, and reliable solid waste, recycling, green waste/organics collection, transportation and disposal/processing services to the citizens of the City. Several factors contributed to this rate increase including, but not limited to: increased costs associated with the purchase and operation of collection vehicles, fuel costs, labor costs, and increased costs associated with the organics digester facility.
The organics digester facility is required by California Senate Bill 1383 (SB 1383), and previously approved California Assembly Bill 1826 (AB 1826). SB 1383 is a recent state law passed with the goal of reducing methane. Methane is a potent greenhouse gas, with more than 80 times the warming power of carbon dioxide, and is a major component of decomposing organic waste. In response to the harmful effects of methane gas, Cal Recycle (a branch of the California Environmental Protection Agency) adopted regulations implementing SB 1383 in the fall of 2020. Key components of SB 1383 include implementing organic waste collection programs (including food waste), monitoring organics carts for contamination, and reporting data. specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.
NOTICE OF PUBLIC HEARING
The Public Hearing for the Proposed Rate Increase within the City limits will be held on:
June 14, 2022 Time: 6:00 pm
e City Council Chambers, 215 East Branch St. Arroyo Grande, CA At the Public Hearing, the City Council will consider all public comment in support the Proposed Rate Increase and whether or not a Majority Protest exist Constitution (as described below). If approved, the Proposed Rate Increase would become effective on Reason for the Proposed Rate Increase
Proposed Rate Increase is Proposed Rate Increase is 22.19 percent for solid waste, recycl services. In addition, there will be a temporary
increase being delayed fromMay 1, 2022 to
necessary for the Garbage Company to continue to provide safe, environmentally sound, recycling, green waste/organics collection, transportation and disposal/processing to the citizens of the City. Se
ATTACHMENT 3
AB 1826 requires local jurisdictions to develop a program to divert organic waste from landfills to an authorized composting facility like an anaerobic digester.
Basis of the Proposed Rate Increase
The Proposed Rate Increase of 22.19 percent is based on the following cost increases incurred by the Garbage Company:
1. 5.88 percent of the Proposed Rate Increase is for capital investment costs of new collection vehicles, replacement containers and additional containers to meet the demands of SB 1383 compliance.
2. 6.20 percent of the Proposed Rate Increase is for increased capital equipment investments and escalating operating expenses related to the Anaerobic Digester.
3. 5.63 percent of the Proposed Rate Increase is for market wage adjustments to attract and retain safe, quality employees.
4. 1.88 percent of the Proposed Rate Increase is for increases the commingle processing fee
5. 2.60 percent of the Proposed Rate Increase is for increases in other operational expenses The additional temporary 5.12 percent recovery rate increase is for the delayed rate implementation that was no fault of the Garbage Company. The total rate increase implemented June 15, 2022 will be
27.32 percent. The temporary 5.12 percent recovery rate increase will expire January 1, 2023, net of any Consumer Price Index adjustment as discussed next.
In addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the following:
1. Price Index for Urban Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024.
The January 1, 2023 CPI rate adjustment will be applied after the 5.12 percent recovery rate increase is removed.
At the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account for operational and capital cost increases due largely to tasks associated with the implementation of SB 1383. These include the following tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and record keeping programs; establishing, administering, and implementing the edible food recovery requirements; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers, and issuing educational notices where necessary and/or appropriate; and required reporting to CalRecycle. The adopted fee will be effective on July 1, 2022. The City has authorized the Garbage Company to bill this additional fee on behalf of the IWMA.
The IWMA is a Joint Powers Authority formed to plan and implement regional solid waste and hazardous waste programs mandated by State law. The Joint Powers Agreement between the City of Arroyo Grande and the IWMA can be made available by the City upon request or on the IWMA website at www.iwma.com.
A copy of the 2022 Base Year Rate Adjustment Application, which provides additional information on the 300 East Branch St., Arroyo Grande,
California.
for increased capital equipment investments
and escalating operating expenses related to the Anaerobic Digester. percent of the Proposed Rate Increase is for market wage adjustments to attract and the Proposed Rate Increase is for increases the commingle processing fee or increases in other operational expenses
percent recovery rate increase is for the delayed rate implementati hat was no fault of the Garbage Company. The total rate increase implemented June 15 percent recovery rate increase will expire January 1, 2023, net of ussed next.
ddition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the Consumers based on the All U.S.
Statistics for the month of June 2022 for January 1, 2023 and June 2023 for Ja The January 1, 2023 CPI rate adjustment will be applied after the increase is removed.
At the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account increases due largely to tasks associated with the implementation of SB 1383. tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and ng programs; establishing, administering, and implementing the edible food recovery requirements; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers necessary and/or appropriate; and required reporting to CalRecycle. 1, 2022. The City has authorized the Garbage Company to bill this
How Do I Protest the Proposed Rate Increase?
Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest against the Proposed Rate Increase to the City Clerk before the close of the Public Hearing referenced above.
An owner(s) of property (parcel(s)) receiving solid waste, recycling, and green waste services within the City limits. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain or be accompanied by written evidence that such person signing the protest is the owner of the parcel(s) receiving services;
or
the corresponding parcel receiving solid waste, recycling, and green waste services within the City limits (tenant-customer).
A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or eive solid waste, recycling, and green waste
services, and a signature by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subject to the requirements of Section 6 of Article XIII D of the California Constitution. Written protests will not be accepted by e-mail or by facsimile. Verbal protests will not be counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the City Clerk before the close of the Public Hearing referenced above.
Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande, CA 93420
Written protests may also be personally delivered to the City Clerk located at 300 East Branch Street, Arroyo Grande, California.
If valid written protests are presented by a majority of owners and/or tenants-customers of parcels receiving solid waste, recycling, and green waste services within the City limits, then the City will not adjust/increase the rates for the services.
een waste services within the
A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or eive solid waste, recycling, and green waste
ure by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subj nts of Section 6 of Article XIII D of the California Constitution. Written protests will not be mail or by facsimile. Verbal protests will not be counted in determining the existence of a protest must be received in writing by the City Clerk before the c Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande,
Written protests may also be personally delivered to the City Clerk California.
If valid written protests are presented by a majority of owners and/or tenants recycling, and green waste
rates for the services.
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 15, 2022
CITY OF ARROYO GRANDE
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed
Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
RESIDENTIAL:
32 Gallon Waste Wheeler 1 $19.46 $5.32 $24.78
64 Gallon Waste Wheeler 1 $25.29 $6.91 $32.19
96 Gallon Waste Wheeler 1 $31.13 $8.50 $39.63
TWO-64 Gallon Waste Wheelers 1 $36.98 $10.10 $47.08
ONE 64 & ONE 96 Gallon 1 $42.84 $11.70 $54.54
TWO-96 Gallon Waste Wheelers 1 $48.67 $13.29 $61.96
Residential customers must use the waste wheelers provided by the garbage company. This solid service fee for residential trash collections (container with black or gray lid) includes once a week pick-up of one greenwaste/organics container (green lid), and one recycling container (blue lid).
MISCELLANEOUS CHARGES - ALL
CUSTOMERS:
Overstacked Garbage & extra bags
Minimum/unit each $5.51 $1.51 $7.02
Overstacked Greenwaste & extra
bags Minimum/unit each $2.77 $0.76 $3.53
Overstacked Blue Bin & extra bags
Minimum/unit each $1.55 $0.42 $1.97
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE RATES per month $13.76 $3.76 $17.51
Monthly charge for additional 96-
gallon green waste service per month $3.80 $1.04 $4.84
Extended Vacation Service per month $15.78 $4.31 $20.09 Vacant Rate per month $15.78 $4.31 $20.09
Waste wheeler cleaning each time $20.52 $5.61 $26.13
Trip charge each time $33.07 $9.03 $42.10
Non-payment downsize service each time $33.07 $9.03 $42.10 Non-payment redeliver waste
wheeler each time $33.07 $9.03 $42.10
Non-payment reconnect service each time $33.07 $9.03 $42.10 Small item pickup (TV, toilet) each $32.27 $8.81 $41.08 Appliance pickup-residential each $45.51 $12.43 $57.94
Garbage extras on your scheduled
pickup day per yard $11.62 $3.17 $14.79
Garbage extras -NOT ON YOUR
SCHEDULED PICKUP DAY per yard $31.25 $8.54 $39.79
Re-deliver bin on stopped acct each time $39.44 $10.77 $50.21 Stand by time per hour $66.60 $18.19 $84.79
payment redeliver waste
$6.91
$8.50
$10.10
$42.84 $11.70
$48.67 $13.29
wheelers provided by the garbage company. This solid service fee for residential trash collections (container with black or gray lid) includes once a week pick d one recycling container (blue lid).
each $5.51
each $2.77
Overstacked Blue Bin & extra bags
each $1.5
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE RATES per month
charge for additional 96-
gallon green waste service per month
Extended Vacation Service per month
Vacant Rate per month
Waste wheeler cleaning
payment downsize service
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed
Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
Tax Lien Cert. Mail Fee $4.05 $1.11 $5.16
City Clean Up $11.28 $3.08 $14.36
Extra bin cleaning $61.55 $16.81 $78.36
Damage/Destruction of bins or
waste wheelers by quote only
Larger than residential appliance or
glass, glass doors, or plate glass by quote only
Short Term Dumpsters:
Delivery & Pickup-Bin $39.46 $10.78 $50.24
Delivery & Pickup-Waste Wheeler $13.76 $3.76 $17.52
Rental Per Day $2.92 $0.80 $3.72
Empties Per Yard $31.25 $8.54 $39.79
Mattress:
Twin Each $17.91 $4.89 $22.80
Double Each $17.91 $4.89 $22.80
Queen Each $17.91 $4.89 $22.80
King Each $17.91 $4.89 $22.80
ADDITIONAL INFORMATION ALL CUSTOMERS:
1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates
2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container.
3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose.
4. Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day.
5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings.
6. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill.
7. Customers can be responsible for contamination fees
Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate.
Any additional recycling, including g
$10.78
$13.76 $3.76
$2.92 $0.80
$31.25 $8.54
$17.91 $4.89
$17.91 $4.89
$17.91
Each $17.91
INFORMATION ALL CUSTOMERS:
Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container.
It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green wast their respective containers and keep it loose.
Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day. schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings.
Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month o ng charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill.
Customers can be responsible for contamination fees
Notice of Public Hearing Regarding
Proposed Solid Waste Rate Increase
Property Owners and Tenants - Customers:
This notice is intended to inform you that the City of Arroyo Grande (the South County Sanitary Service (the
within the City. The Proposed Rate Increase will be considered by the Council at the date, time, and location specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the following information:
The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.
NOTICE OF PUBLIC HEARING
The Public Hearing for the Proposed Rate Increase within the City limits will be held on:
Date: June 14, 2022 Time: 6:00 pm
Place: Arroyo Grande City Council Chambers, 215 East Branch St. Arroyo Grande, CA At the Public Hearing, the City Council will consider all public comment in support of and in opposition to the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California Constitution (as described below). If approved, the Proposed Rate Increase would become effective on June 15, 2022.
Reason for the Proposed Rate Increase
The Proposed Rate Increase is 22.19 percent for solid waste, recycling, and green waste/organics collection services. In addition, there will be a temporary 5.12 percent increase to recover revenue lost due to this rate increase being delayed from May 1, 2022 to June 15, 2022. This recovery component will expire January 1, 2023. The increase is necessary for the Garbage Company to continue to provide safe, environmentally sound, and reliable solid waste, recycling, green waste/organics collection, transportation and disposal/processing services to the citizens of the City. Several factors contributed to this rate increase including, but not limited to: increased costs associated with the purchase and operation of collection vehicles, fuel costs, labor costs, and increased costs associated with the organics digester facility.
The organics digester facility is required by California Senate Bill 1383 (SB 1383), and previously approved California Assembly Bill 1826 (AB 1826). SB 1383 is a recent state law passed with the goal of reducing methane. Methane is a potent greenhouse gas, with more than 80 times the warming power of carbon dioxide, and is a major component of decomposing organic waste. In response to the harmful effects of methane gas, Cal Recycle (a branch of the California Environmental Protection Agency) adopted regulations implementing SB 1383 in the fall of 2020. Key components of SB 1383 include implementing organic waste collection programs (including food waste), monitoring organics carts for contamination, and reporting data. specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the The Date, Time, and Place of the Public Hearing;
The Reason for the Proposed Rate Increase; and
The Basis for the Proposed Rate Increase; and
The Majority Protest Procedures.
NOTICE OF PUBLIC HEARING
The Public Hearing for the Proposed Rate Increase within the City limits will be held on:
14, 2022 Time: 6:00 pm
de City Council Chambers, 215 East Branch St. Arroyo Grande, CA At the Public Hearing, the City Council will consider all public comment in support the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to Constitution (as described below). If approved, the Proposed Rate Increase would become effective on Reason for the Proposed Rate Increase
Proposed Rate Increase is 22.19 percent for solid waste, recycling, and green w services. In addition, there will be a temporary
increase being delayed from May 1, 2022 to
s necessary for the Garbage Company to continue to provide safe, environmentally sound, recycling, green waste/organics collection, transportation and disposal/processing services to the citizens of the City. Several factors c
AB 1826 requires local jurisdictions to develop a program to divert organic waste from landfills to an authorized composting facility like an anaerobic digester.
Basis of the Proposed Rate Increase
The Proposed Rate Increase of 22.19 percent is based on the following cost increases incurred by the Garbage Company:
1. 5.88 percent of the Proposed Rate Increase is for capital investment costs of new collection vehicles, replacement containers and additional containers to meet the demands of SB 1383 compliance.
2. 6.20 percent of the Proposed Rate Increase is for increased capital equipment investments and escalating operating expenses related to the Anaerobic Digester.
3. 5.63 percent of the Proposed Rate Increase is for market wage adjustments to attract and retain safe, quality employees.
4. 1.88 percent of the Proposed Rate Increase is for increases the commingle processing fee
5. 2.60 percent of the Proposed Rate Increase is for increases in other operational expenses The additional temporary 5.12 percent recovery rate increase is for the delayed rate implementation that was no fault of the Garbage Company. The total rate increase implemented June 15, 2022 will be
27.32 percent. The temporary 5.12 percent recovery rate increase will expire January 1, 2023, net of any Consumer Price Index adjustment as discussed next.
In addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the following:
1. Price Index for Urban Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024.
The January 1, 2023 CPI rate adjustment will be applied after the 5.12 percent recovery rate increase is removed.
At the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account for operational and capital cost increases due largely to tasks associated with the implementation of SB 1383. These include the following tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and record keeping programs; establishing, administering, and implementing the edible food recovery requirements; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers, and issuing educational notices where necessary and/or appropriate; and required reporting to CalRecycle. The adopted fee will be effective on July 1, 2022. The City has authorized the Garbage Company to bill this additional fee on behalf of the IWMA.
The IWMA is a Joint Powers Authority formed to plan and implement regional solid waste and hazardous waste programs mandated by State law. The Joint Powers Agreement between the City of Arroyo Grande and the IWMA can be made available by the City upon request or on the IWMA website at www.iwma.com.
A copy of the 2022 Base Year Rate Adjustment Application, which provides additional information on the 300 East Branch St., Arroyo Grande,
California.
for increased capital equipment investments
and escalating operating expenses related to the Anaerobic Digester.
5.63 percent of the Proposed Rate Increase is for market wage adjustments to attract and the Proposed Rate Increase is for increases the commingle processing fee percent of the Proposed Rate Increase is for increases in other operational expenses percent recovery rate increase is for the delayed rate implementat that was no fault of the Garbage Company. The total rate increase implemented June 15 percent recovery rate increase will expire January 1, 2023, net of any Consumer Price Index adjustment as discussed next.
addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the Consumers based on the All U
Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024.
The January 1, 2023 CPI rate adjustment will be applied after the increase is removed.
At the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account increases due largely to tasks associated with the implementation of SB 1383. tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and ng programs; establishing, administering, and implementing the edible food recovery requirements; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers necessary and/or appropriate; and required reporting to CalRecycle. 1, 2022. The City has authorized the Garbage Company to bill this
How Do I Protest the Proposed Rate Increase?
Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest against the Proposed Rate Increase to the City Clerk before the close of the Public Hearing referenced above.
An owner(s) of property (parcel(s)) receiving solid waste, recycling, and green waste services within the City limits. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain or be accompanied by written evidence that such person signing the protest is the owner of the parcel(s) receiving services;
or
the corresponding parcel receiving solid waste, recycling, and green waste services within the City limits (tenant-customer).
A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or ste, recycling, and green waste
services, and a signature by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subject to the requirements of Section 6 of Article XIII D of the California Constitution. Written protests will not be accepted by e-mail or by facsimile. Verbal protests will not be counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the City Clerk before the close of the Public Hearing referenced above.
Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande, CA 93420
Written protests may also be personally delivered to the City Clerk located at 300 East Branch Street, Arroyo Grande, California.
If valid written protests are presented by a majority of owners and/or tenants-customers of parcels receiving solid waste, recycling, and green waste services within the City limits, then the City will not adjust/increase the rates for the services.
reen waste services within the
A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or ste, recycling, and green waste
services, and a signature by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subject to ents of Section 6 of Article XIII D of the California Constitution. Written protests will not be mail or by facsimile. Verbal protests will not be counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the City Clerk before the close of the Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande,
Written protests may also be personally delivered to the City Clerk California.
If valid written protests are presented by a majority of owners and/or tenants recycling, and green waste
rates for the services.
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE JUNE 15, 2022
CITY OF ARROYO GRANDE
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
APARTMENTS, TRIPLEX, DUPLEX
Rates are the same as commercial rates (below).
COMMERCIAL DUMPSTERS - ALL AREAS:
1 yd dumpster 1 $96.13 $26.26 $122.39
1 yd dumpster 2 $140.24 $38.31 $178.55
1 yd dumpster 3 $184.40 $50.37 $234.77
1 yd dumpster 4 $236.32 $64.55 $300.87
1 yd dumpster 5 $277.84 $75.89 $353.73
1 yd dumpster 6 $329.80 $90.09 $419.89
1 yd dumpster 7 $400.86 $109.50 $510.36
1.5 yd dumpster 1 $109.10 $29.80 $138.90
1.5 yd dumpster 2 $168.81 $46.11 $214.92
1.5 yd dumpster 3 $238.96 $65.27 $304.23
1.5 yd dumpster 4 $311.63 $85.12 $396.75
1.5 yd dumpster 5 $379.18 $103.58 $482.76
1.5 yd dumpster 6 $428.52 $117.05 $545.57
1.5 yd dumpster 7 $501.77 $137.06 $638.83
2 yd dumpster 1 $122.10 $33.35 $155.45
2 yd dumpster 2 $205.17 $56.04 $261.21
2 yd dumpster 3 $290.89 $79.46 $370.35
2 yd dumpster 4 $384.34 $104.99 $489.33
2 yd dumpster 5 $475.25 $129.82 $605.07
2 yd dumpster 6 $532.40 $145.43 $677.83
2 yd dumpster 7 $619.02 $169.09 $788.11
3 yd dumpster 1 $145.41 $39.72 $185.13
3 yd dumpster 2 $275.28 $75.19 $350.47
3 yd dumpster 3 $384.34 $104.99 $489.33
3 yd dumpster 4 $501.19 $136.90 $638.09
3 yd dumpster 5 $594.70 $162.45 $757.15
3 yd dumpster 6 $708.98 $193.66 $902.64
3 yd dumpster 7 $905.52 $247.35 $1,152.87
2 yd dumpster
$26.26
$38.31
$50.37 $234.77
$64.55 $300.87
$277.84 $75.89 $353.73
$329.80 $90.09
$400.86 $109.50
$109.10 $29.80
$168.81
3 $238.96
4 $311.63
5 $379.18
6 $428.52
7 $501.77
2 yd dumpster 1
2 yd dumpster 2
2 yd dumpster 3
2 yd dumpster 4
2 yd dumpster
2 yd dumpster
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
4 yd dumpster 1 $181.81 $49.66 $231.47
4 yd dumpster 2 $322.02 $87.96 $409.98
4 yd dumpster 3 $462.25 $126.27 $588.52
4 yd dumpster 4 $594.70 $162.45 $757.15
4 yd dumpster 5 $734.95 $200.76 $935.71
4 yd dumpster 6 $872.60 $238.36 $1,110.96
4 yd dumpster 7 $1,111.28 $303.55 $1,414.83
6 yd dumpster 1 $272.72 $74.50 $347.22
6 yd dumpster 2 $483.05 $131.95 $615.00
6 yd dumpster 3 $693.36 $189.40 $882.76
6 yd dumpster 4 $892.08 $243.68 $1,135.76
6 yd dumpster 5 $1,102.41 $301.13 $1,403.54
6 yd dumpster 6 $1,308.92 $357.54 $1,666.46
6 yd dumpster 7 $1,666.92 $455.33 $2,122.25
8 yd dumpster 1 $363.61 $99.32 $462.93
8 yd dumpster 2 $644.05 $175.93 $819.98
8 yd dumpster 3 $924.49 $252.53 $1,177.02
8 yd dumpster 4 $1,189.43 $324.90 $1,514.33
8 yd dumpster 5 $1,469.91 $401.52 $1,871.43
8 yd dumpster 6 $1,745.22 $476.72 $2,221.94
8 yd dumpster 7 $2,222.57 $607.11 $2,829.68
The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning.
COMMERCIAL GARBAGE CANS - ALL AREAS:
32 Gallon Waste Wheeler 1 $23.37 $6.38 $29.75
32 Gallon Waste Wheeler 2 $49.34 $13.48 $62.82
32 Gallon Waste Wheeler 3 $57.15 $15.61 $72.76
32 Gallon Waste Wheeler 4 $72.69 $19.86 $92.55
64 Gallon Waste Wheeler 1 $49.34 $13.48 $62.82
64 Gallon Waste Wheeler 2 $65.57 $17.91 $83.48
64 Gallon Waste Wheeler 7 $195.92 $53.52 $249.44
96 Gallon Waste Wheeler 1 $57.15 $15.61 $72.76
96 Gallon Waste Wheeler 2 $96.13 $26.26 $122.39
96 Gallon Waste Wheeler 3 $121.02 $33.06 $154.08
96 Gallon Waste Wheeler 4 $146.21 $39.94 $186.15
96 Gallon Waste Wheeler 5 $164.63 $44.97 $209.60
96 Gallon Waste Wheeler 7 $224.61 $61.35 $285.96
64 Gallon Waste Wheeler
$303.55
$74.50
$131.95 $615.
$693.36 $189.40 $882.76
$892.08 $243.68 $1,135.76
$1,102.41 $301.13
$1,308.92 $357.54
$1,666.92 $455.33
$363.61
2 $644.05
3 $924.49
4 $1,189.43
5 $1,469.91
6 $1,745.22
8 yd dumpster 7
The rates shown above include the monthly container rental fee and a semi COMMERCIAL GARBAGE CANS - ALL AREAS:
32 Gallon Waste Wheeler 1
32 Gallon Waste Wheeler
32 Gallon Waste Wheeler
32 Gallon Waste Wheeler
64 Gallon Waste Wheeler
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
COMMERCIAL - OTHER CHARGES:
Rates for all commercial customers include recycling or greenwaste/organics pickup once per week, included with the garbage service rate. Customers can choose from a 64 or 96 gallon blue commingled recycle waste wheeler or a 32 or 64 gallon organics waste wheeler included with the garbage service rate (96 gallon waste wheelers can only be used with green waste due to weight). If you need a bin for recycling there is a charge (see below).
If you need more frequent recycling, including organics/greenwaste service, it can be provided at a 50% discount from the garbage service rates for the specified level of service required.
MISCELLANEOUS CHARGES - ALL CUSTOMERS:
Overstacked Garbage & extra
bags Minimum/unit each $5.51 $1.51 $7.02
Overstacked Greenwaste &
extra bags Minimum/unit each $2.77 $0.76 $3.53
Overstacked Blue Bin & extra
bags Minimum/unit each $2.91 $0.79 $3.70
Xtra Recycle 32, 64, or 96
waste wheelers per month $1.55 $0.42 $1.97
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE
RATES per month $13.76 $3.76 $17.52
Monthly charge for additional
96-gallon green waste service per month $3.80 $1.04 $4.84 Extended Vacation Service per month $12.82 $3.50 $16.32 Vacant Rate per month $15.79 $4.31 $20.10
Waste wheeler cleaning each time $20.52 $5.61 $26.13
Trip charge each time $13.76 $3.76 $17.52
Non-payment downsize
service each time $13.76 $3.76 $17.52
Non-payment redeliver waste
wheeler each time $13.76 $3.76 $17.52
Non-payment reconnect
service each time $33.07 $9.03 $42.10
Small item pickup (TV, toilet) each $32.27 $8.81 $41.08 Appliance pickup-residential each $45.51 $12.43 $57.94
Lock Charge $7.66 $2.09 $9.75
Garbage extras on your
scheduled pickup day per yard $11.62 $3.17 $14.79
Garbage extras -NOT ON
YOUR SCHEDULED
PICKUP DAY per yard $31.25 $8.54 $39.79
Commercial Waste Wheeler
rent per month $4.26 $1.16 $5.42
Small item pickup (TV, toilet)
at a 50% discount from the garbage service rates for the specified level of service required. $1.51
$2.77 $0.76 $3.53
$2.91 $0.79
$1.55 $0.42
per month $13.76
gallon green waste service per month $3.80
Vacation Service per month $12.82
per month
Waste wheeler cleaning each time
each time
payment downsize
each time
payment redeliver waste
each time
payment reconnect
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
1/1/2021
Proposed Rate
Adjustment
Proposed
Monthly Rate
Effective
6/15/2022
Re-deliver bin on stopped
acct each time $39.44 $10.77 $50.21
Large Compactor (> 4 yards) per yard $16.90 $4.62 $21.52 Small Compactors (4 yards &
below)
assume 3 to 1
compaction
3 times the
garbage rate
Sunday Service (in additional
to garbage service level) per month $68.87 $18.81 $87.68 Recycle bin rental per month $7.66 $2.09 $9.75
Stand by time per hour $66.28 $18.10 $84.38
Extra bin cleaning $61.55 $16.81 $78.36
Larger than residential
appliance by quote only
Damage/Destruction of bins
or waste wheelers by quote only
Short Term Dumpsters:
Delivery & Pickup-Bin $39.46 $10.78 $50.24
Delivery & Pickup-Waste
Wheeler $13.76 $3.76 $17.52
Rental Per Day $2.92 $0.80 $3.72
Empties Per Yard $31.25 $8.54 $39.79
Mattress:
Twin Each $17.91 $4.89 $22.80
Double Each $17.91 $4.89 $22.80
Queen Each $17.91 $4.89 $22.80
King Each $17.91 $4.89 $22.80
ADDITIONAL INFORMATION ALL CUSTOMERS:
1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates
2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash.
Please bag Styrofoam packing peanuts before placing in trash container.
3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose.
4. Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day.
5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings.
6. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill.
7. Customers can be responsible for contamination fees
Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate.
$18.81
$2.09
$18.10
$16.81 $78.36
by quote only
by quote only
$39.46 $10.78
$13.76
Per Day $2.92
Per Yard $31.25
Each $17.91
Each
Each
Each
ADDITIONAL INFORMATION ALL CUSTOMERS:
Customers requesting Temporary Bins or Roll
Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash.
Please bag Styrofoam packing peanuts before placing in trash container.
It is encouraged to bag your trash in the garbage container but do not in their respective containers and keep it loose.
Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collecti
April 6, 2022
Whitney McDonald
City Manager
City of Arroyo Grande
300 E Branch St, Arroyo Grande, CA 93420
Subject: South County Sanitary Services January 2022 Revised Rate Increase Request Dear Ms. McDonald,
Please accept this letter as a follow-up to the rate application South County Sanitary Services (͞SCSS͟) filed with you on October 20, 2021. The rate increase percentage decreased as a result of several meetings with the ŝƚLJ͛ƐƌĂƚĞƌĞǀŝĞǁĐŽŶƐƵůƚĂŶƚ͕Dƌ͘ŝůů^ƚĂƚůĞƌ. This letter discusses items that changed since our original submission ĂŶĚƌĞƐƉŽŶĚƐƚŽDƌ͘^ƚĂƚůĞƌ͛Ɛ^ŽůŝĚtĂƐƚĞZĂƚĞZĞǀŝĞǁ report, dated March 2022. We lowered the request by 2.46% to a 22.19% increase in our revenue requirement. A revised breakout of the rate increase is shown in the table below. Rate increase justifications have not changed since the previous cover letter. The table also includes a delayed rate implementation component of 11.95% as described in the next paragraph, which brings the total rate increase request to 34.14% for the first year.
Factor Increase %
Capital Investment (Depreciation) 5.88%
HZI Digester Expense 6.20%
Wage Adjustments to Market 5.63%
Recycle Processing Fee 1.88%
Other General Costs 2.60%
Total 22.19%
Delayed Rate Component 11.95%
Total w/ Delayed Rate Component 34.14%
ATTACHMENT 4
{00101715.DOCX.}Page 2 of 4
Delayed Rate Implementation
Per page II-8 of the Rate Manual, if approval of the application and new rates is delayed due to no fault of the hauler, the City will include the value of revenue lost due to the delay in the rate increase. Assuming rates become effective June 15, 2022, instead of March 1, 2022 (effective date based on the timeline provided in the Rate Manual), the rate increase will increase by 11.95% to provide full recovery of SCSS͛Ɛ ϮϬϮϮ ƌĞǀĞŶƵĞ ƌĞƋƵŝƌĞŵĞŶƚ in 2022. The delayed rate implementation component will apply evenly over the remaining months in 2022 and end effective January 1, 2023, net of any CPI increase.
SCSS is not in agreement with Mr. ^ƚĂƚůĞƌ͛ƐƌĞĐŽŵŵĞŶĚed delayed rate implementation timeline.
Below are our responses to the concerns Mr. Statler presented regarding the delayed rate implementation timeline on page 3 of his report.
1. Mr. Statler notes that when the Rate Manual was created there was ͞ĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐ͟ that Proposition 218 45-day notice and protest requirements did not apply and, as a result, were not included in the 120-day rate review period. While SCSS understands there was not a formalized Proposition 218 requirement at the time, the 120-day period set forth in the Rate Manual is more than enough time to provide for the Proposition 218 customer notification and protest requirements.
2. Mr. Statler mentions the delay in the approval of the Integrated Waste Management Authority (IWMA) fee as a reason to extend the 120-day period. SCSS outlined several options to avoid having the IWMA fee delay the rate application process, but these were not initially accepted. Additionally, SCSS made multiple requeststo the IWMA to determine if we could do anything to reduce further delays in the approval process of the new fee.
This unfortunate delay was out of SCSS͛ƐĐŽŶƚƌŽů as the IWMA is a separate entity, and is not an acceptable reason to penalize SCSS on timely rate implementation.
3. Mr. Statler mentions the size and complexity of the application being significantly greater than past applications. tŚŝůĞ^^^ĂƉƉƌĞĐŝĂƚĞƐDƌ͘^ƚĂƚůĞƌ͛ƐƚŚŽƌŽƵŐŚŶĞƐƐŝŶŚŝƐƌĞǀŝĞǁ͕ this complexity already existed. Dƌ͘^ƚĂƚůĞƌ͛ƐůĂƐƚ^ŽůŝĚtĂƐƚĞZĂƚĞZeview report, issued in April 2019, of the South County jurisdictions discussed several complex issues of the rate application along with issues that arose as a product of the outdated 28 year old Rate DĂŶƵĂů͘WĂƌƚŽĨDƌ͘^ƚĂƚůĞƌ͛Ɛrecommendations in that April 2019 report included updating the 1994 Rate Manual͘Dƌ͘^ƚĂƚůĞƌ͛ƐƉƌŝůϮϬϭϵƌĞƉŽƌƚĂůƐo committed SCSS, and our other Central Coast Companies, to conceptually fund half the cost of the Rate Manual update and also named 6 rate consultant firms capable of such an update. SCSS should not be denied a delayed rate implementation increase as the size and complexity of the application has been known and there was sufficient notice to update the Rate Manual.
4. Below are key dates on the rate application submission, review process, and issuance of the draft report.
x September 1 ʹ SCSS notified the City via email that a rate application is pending and should contact Mr. Statler if the City intended to engage him for this rate application review.
{00101715.DOCX.}Page 3 of 4
x September 17 ʹ Mr. Statler sent a proposal via email to the City to review the SCSS Rate Applications which indicated a 45 day period to prepare a draft report after City authorization to proceed and receipt of the rate increase application. x October 20 ʹ SCSS sent the rate application to the City via email to begin the rate review process along with a suggestion to forward to Mr. Statler should the City choose him to review the applications.
x October 27 ʹ The City forwarded the Base Rate Application to Mr. Statler for review via email.
x December 20 ʹ Mr. Statler provided an email update of the SCSS review to the City which indicated a potential delay with the IWMA fee increase. x January 27 ʹ Mr. Statler provided an email update of the SCSS review to the City which indicated the IWMA fee increase would not be part of the SCSS rate increase; instead determined to be a separate fee on the SCSS customer invoices.
This update to the City also acknowledged delayed rate implementation effective February 17, 2022.
x March 18 ʹ Mr. Statler provided an email update of the SCSS review to the City stating that an Administrative Draft would be issued on March 21. This email also included an indication that there was a discrepancy between parties on the delayed rate implementation timeline.
x March 21 ʹ Mr. Statler provided the draft report to the City which highlighted the delayed rate implementation discrepancy between what the rate manual prescribes (March 1st) versus what Mr. Statler recommended (May 1st).
In conclusion, while SCSS understands the concerns raised by Mr. Statler in his report, the existing language in the Rate Manual entitles SCSS to recovery through the delayed rate implementation mechanism when such delay is due to no fault of SCSS. Mr. Statler has not provided any evidence that the delay in rate implementation was due to the fault of SCSS.
IWMA, Franchise Fees, and AB939 Fees
On March 9, 2022 the IWMA Board approved a 5.4% charge on all residential and commercial revenue, effective July 1, 2022. This charge replaces the current fee of $0.30 per month for residential customers billed under $50/month and 2% of revenue for commercial customers and residents billed over $50/month services. The IWMA fees are a separate line item on the bill and are now based fully on a percentage of revenue, therefore SCSS removed all consideration of IWMA fees from this revised application. Unless otherwise indicated, the new July 1, 2022 IWMA fee will be a disclosure item on the Prop 218 notice.
{00101715.DOCX.}Page 4 of 4
Reclassification of HZI Digester Processing Expense
The digester and previous green waste composting process has always been treated as an outside service eligible for margin. However, in order to settle this rate application, SCSS agreed to reclassify the HZI digester processing fee from an outside services operating expense to a passthrough expense. Margin is not allowed on pass-through expenses.
Rate Manual Revision
This application follows guidance in the 28-year-old rate manual. As mentioned in the original application submission letter, the rate manual is outdated and does not fairly consider current business practices. SCSS would like to reiterate its focus on working to revise the rate manual with the communities serviced in 2022.
Conclusion
tĞĂƉƉƌĞĐŝĂƚĞ ƚŚĞŝƚLJ͛Ɛ ƚŝŵĞĂŶĚĐŽůůĂďŽƌĂƚŝŽŶŽŶ ƚhis rate application. We look forward to a continued partnership with the City of Arroyo Grande, and allowing SCSS to provide safe and reliable service that meets the ĐŽŵŵƵŶŝƚLJ͛ƐƐŽůŝĚǁĂƐƚĞ, recycling and organic collection needs.
If you have any questions regarding our submittal, please feel to contact me at 805-748-8041.
Sincerely,
Jeffrey Clarin, P.E.
District Manager
South County Sanitation Services
Waste Connections
MEMORANDUM
TO: City Council
FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Supplemental Information
Agenda Item 11.a. – Consider Request from South County Sanitary Service for Integrated Solid Waste Collection Rate Increase DATE: April 12, 2022
Attached is correspondence received before 4 p.m. for the above referenced item. cc: City Manager
Assistant City Manager/Public Works Director
Administrative Services Director
City Attorney
City Clerk
City Website (or public review binder)
From: Jim Guthrie
To: Caren Ray Russom; Jimmy Paulding; Keith Storton; Kristen Barneich; Lan George Cc: Jessica Matson
Subject: Trash rate increases
Date: Tuesday, April 12, 2022 3:39:42 PM
Mayor and Council Members:
I apologize for the lateness of this email I wasn’t planning on commenting on the Trash rate increases but the 30% increase promoted me to go a little deeper.
Given the 186% increase in costs for deprecation, I think a more through and clearer explanation than the one included in the report is warranted. Although I had to read is several times, my interpatient of it is that we benefited in the past from what turned out to be an accelerated rate of deprecation ( the 7 year period was actually longer) and now we are seeing the difference between some part of the fleet already depreciated to zero and depreciation on new more expensive vehicles?
My questions are , how many years did we have zero depreciation, how much more expensive are the new vehicles and what is the new amortization period? The note the goes on to state,
“Combined with a possible change in amortization schedule as noted in the sidebar, planned replacements should result in stabilized costs in the future.”.
So, is there a new amortization rate or not and by “stabilized “will they just go up by less than 186%, stay the same or come down because the amortization rate is too short in this calculation?
I have similar concerns about the Greenwaste pass through costs, but at least there is a more through explanation. In addition, they are out of the control of the contractor and therefore not an allowable cost in their profit calculation.
The other area that I think needs more explanation is the additional IWMA costs.
The table in the staff report shows expense for residential customers going up by as much as 750% ($0.30 to $2.26).
How much of this increase is due to the IWMA expense being spread over fewer customers vs the change from a fixed cost to a % of the total bill.
If that is not possible how much did the total IWMA cost for Arroyo Grande go up with the reformation of the IWMA?
Thanks
Jim Guthrie