Belmont City Council
September 13, 2022

Review Solid Waste Rate Application and Revise Maximum Rates for Collection Services for 2023 - Staff Report

STAFF REPORT
Meeting Date: September 13, 2022
Agency: City of Belmont
Staff Contact: Peter Brown, Public Works Dept., (650) 595-7459, [email protected] Alberto Espinoza, Public Works Dept., (650) 595-7465, [email protected] Agenda Title: Review Solid Waste Rate Application and Revise Maximum Rates for Collection Services for 2023
Agenda Action: Resolution
Recommendation
Adopt a resolution stating the City of Belmont’s intent to revise the maximum rates that may be charged for solid waste, recyclable materials, and organic materials collection services effective January 1, 2023, and set a Public Hearing date for November 22, 2022.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
On August 28, 2018, the Council authorized the City Manager to finalize and execute an Amended and Restated Franchise Agreement (Agreement) with Recology of San Mateo County (Recology) for recyclable materials, organic materials, and solid waste collection from January 1, 2021 to December 31, 2035. The Agreement provides for an annual review of the maximum rates that Recology may charge Belmont residential and commercial customers for regular and unscheduled services. Each year, Recology proposes, City staff analyzes, and the City Council adopts solid waste rates that does not exceed Recology’s maximum rates.

On July 31, 2022, Recology provided the City their 2023 rate application (Attachment B) and detailed worksheet outlining their calculation of the maximum rates. Also in July, as part of the City’s review process, the City retained the services of HDR, Inc. (HDR) to confirm that the rates proposed by Recology were calculated in accordance with the Agreement and associated amendments. HDR has confirmed that the rate adjustment application and the accompanying maximum rate schedules submitted by Recology meet the requirements of the Agreement. This report is the first step in the City’s process to approve the maximum rates that may be charged for solid waste, recyclable materials, and organic materials collection services. In November, the City plansto hold a public hearing following the procedures of Proposition 218 to adopt the calendar year 2023 solid waste rates.

Analysis
Recology is proposing total contractor compensation of $8,773,496 for 2023. The percentage change between the 2023 total target revenue of $8,773,496 and the 2022 target revenue of $8,464,059 results in the adjustment multiplier rate of 3.66%, which is consistent with methodology of the Agreement. The adjustment multiplier rate of 3.66% is the proposed 2023 rate increase to the residential and commercial 313

Review Solid Waste Rate Application and Revise Maximum Rates for Collection Services for 2023 - Staff Report carts and bins and it accounts for CPI cost increases to fuel and service levels from April 2021 to April 2022. The proposed 3.66% increase is considerably lower than the 7.29% change last year, and is a significant achievement given current and recent inflation rates. The disposal cost components and agency payments are also included as part of the adjustment multiplier rate. Table 1 is a summary of the 2022 rate index calculation which was used to determine the 2023 adjustment multiplier rate.

Table 1
2022 Rate Index Calculation
Per the Agreement, the rate application is due to the City by July 31 of each year. Recology submitted a supplemental request on August 29, 2022, that they overlooked in their rate application. They are requesting that COVID-19 related expenses be included in this year’s rate setting process. Staff does not believe it is necessary to include the $18,912 to the current maximum rates since the Agreement has no provision that obligates Belmont to pay for the COVID-19 related expenses. If it is later determined that the request is appropriate, the City will consider the appropriate course of action. 314

Review Solid Waste Rate Application and Revise Maximum Rates for Collection Services for 2023 - Staff Report Table 2 shows the present monthly rates, the proposed monthly rates with the 3.66% rate increase, and the monthly change (for illustrative purposes) for residential customers.

Table 2
Summary of the Present, Proposed, and Monthly Change

RESIDENTIAL CARTS
Present Proposed
Monthly Maximum $/Month
Schedule Schedule Description 2022 Rate 2023 Rate Change R20G Residential Waste - 20 Gallons $34.94 $36.22 $1.28 R32G Residential Waste - 32 Gallons $41.68 $43.21 $1.53 R64G Residential Waste - 64 Gallons $82.06 $85.06 $3.00 R96G Residential Waste - 96 Gallons $123.08 $127.59 $4.51 Commercial customers have similar service to residential customers, but they have the option to adjust the number of pickups per week. In 2023, it is estimated that the commercial rates (Schedule L) will increase by 3.66% for all cart sizes. Table 3 is a summary of the calculated maximum commercial solid waste rates by cart size. Some minor rounding of the rates may occur for purposes of ease of administration.

Table 3
Summary of Calculated Maximum Commercial Solid Waste
Rates (By Gallon Cart Size; Regularly Scheduled - $/Month)

COMMERCIAL CARTS
Cart Size (in Gallons)
20 32 64 96
# of Pickups Per Week
1 $46.21 $51.31 $99.22 $143.41
2 95.06 105.63 200.21 293.76
3 141.53 157.23 303.77 445.79
4 194.31 215.89 408.45 603.02
5 245.84 273.13 519.19 762.38
6 307.60 341.77 632.69 959.67
7 374.71 416.33 740.66 1,119.60
The monthly rate above includes the following:

One (1) Garbage Cart
Recycling Cart
315

Review Solid Waste Rate Application and Revise Maximum Rates for Collection Services for 2023 - Staff Report

COMMERCIAL CARTS ORGANICS
Cart Size (in Gallons)
32 64 96
# of Pickups Per Week
1 $35.94 $69.47 $100.39
2 73.94 140.15 205.62
3 110.06 212.63 312.05
4 151.14 285.93 422.10
5 191.20 363.44 533.66
6 239.26 442.85 671.76
7 291.45 518.46 783.72
Note: Organics containers are charged at seventy percent (70%) of the similar Garbage commercial cart rate above
container size and service levels for Garbage, representing a thirty percent (30%) discount
Some commercial customers have larger bins which range in size from 1 yard to 6 yards. Commercial waste customers also have the option of different levels of service and can select the number of pick-ups per week. Table 4 is a summary of the calculated maximum commercial solid waste rates for 2023 for the larger bin sizes. It is estimated that the rates (Schedule L) will increase by 3.66% for all bin sizes.

Table 4
Summary of Calculated Maximum Commercial Solid Waste
Rates (By Bin Size in Yards; Regularly Scheduled - $/Month)

COMMERCIAL BINS
Bin Size (in Cubic Yards)
1 2 3 4 6
# of Pickups Per Week
1 $240.64 $484.06 $730.04 $996.57 $1,532.65
2 489.93 976.06 1,468.88 2,010.36 3,108.45
3 743.49 1,472.71 2,212.06 3,024.18 4,672.53
4 1,000.01 1,972.97 2,957.46 4,049.52 6,223.29
5 1,258.59 2,480.30 3,705.43 5,079.19 7,796.16
6 1,570.78 2,928.14 4,498.23 6,151.58 9,424.87
7 1,853.33 3,467.88 5,296.56 7,246.41 11,038.73
The monthly rate above includes the following:

One (1) Garbage Bin
316

Review Solid Waste Rate Application and Revise Maximum Rates for Collection Services for 2023 - Staff Report Recycling container at customer's
requested size

COMMERCIAL BINS ORGANICS
Bin Size (in Cubic Yards)
1 2 3 4 6
# of Pickups Per Week
1 $168.46 $338.85 $511.02 $697.60 $1,072.86
2 342.94 683.23 1,028.25 1,407.25 2,175.92
3 520.43 1,030.90 1,548.45 2,116.92 3,270.75
4 700.01 1,381.07 2,070.22 2,834.67 4,356.31
5 881.02 1,736.18 2,593.79 3,555.42 5,457.32
6 1,099.56 2,049.69 3,148.77 4,306.14 6,597.40
7 1,297.34 2,427.52 3,707.59 5,072.49 7,727.11
Note: Organics containers are charged at seventy percent (70%) of the similar garbage container size above and service level for garbage, representing a thirty percent (30%)
discount

GARBAGE COMPACTORS
Commercial Waste 3 Yard Compactor $1,753.01
Solid Waste Compactor Rate Per Yard $134.87
The monthly fee above includes the following:

Recycling container at customer's requested size
Additional Services
Recology also provides several services that are not considered regularly scheduled services. Those miscellaneous charges are itemized in Exhibit A, Attachment Q of the attached Resolution. In summary, an overall rate increase of 5% is being proposed.

Proposition 218
The City is committed to promoting public participation in City activities. Towards this end, it has been the City’s practice to notice and conduct protest hearing proceedings with respect to solid waste maximum rates in the manner set forth in Article XIII D, Section 6(a) of the California Constitution and Section 53755 of the Government Code. That process requires that a notice be mailed to solid waste customers not less than forty-five days prior to any public hearing affecting any rate.

Customers and property owners have the right to submit written protests against the proposed charges and 317

Review Solid Waste Rate Application and Revise Maximum Rates for Collection Services for 2023 - Staff Report may do so by mail or in person to the City Clerk no later than the conclusion of the public hearing. If written protests against the charges are presented by owners of a majority of the affected parcels, the City Council may not impose the charges.

The attached resolution authorizes the initiation of the Proposition 218 process based on the maximum rates in accordance with the Guidelines for the Submission and Tabulation of Protests in Exhibit B, and sets a public hearing for November 22, 2022.

Alternatives

1. Take no action.

2. Adjust rates differently while meeting the requirements of the Agreement.

Attachments
A. Resolution.

B. Recology 2023 Rate Application
C. HDR Inc. Report – Solid Waste Rate Analysis
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

The recommended rate increases will cover the solid waste program's revenue requirements.

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda 318
RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT STATING

ITS INTENT TO ADJUST THE MAXIMUM RATES THAT MAY BE CHARGED

FOR SOLID WASTE, RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION SERVICES EFFECTIVE JANUARY 1, 2023 AND SETTING A PUBLIC

HEARING
WHEREAS, solid waste, recyclable materials, and organic materials collection services are provided in the City of Belmont by Recology San Mateo County (Recology) pursuant to a franchise agreement with the City; and,
WHEREAS, the franchise agreement with Recology provides for an annual review of the maximum rates that Recology may charge Belmont residential and commercial customers; and,
WHEREAS, Recology provided the City a letter and detailed worksheet outlining their calculation of the maximum rates for Rate Year 2023 which include a proposed 3.66% increase; and,
WHEREAS, the City is contractually obligated to set maximum rates and desires to conduct a proceeding to adjust the schedule of charges as itemized in Exhibit A.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. Proposes rate revisions and methodology generally described in Exhibits “A” and “B” to this Resolution, which are incorporated herein by reference.

SECTION 2. On November 22, 2022, at 7:00 PM or as soon thereafter as may be practicable in the City Council Chambers located at One Twin Pines Lane, Belmont, CA, or online via Zoom ( https://belmont-gov.zoom.us), the City Council will hold a public hearing in accordance with the procedures in California Constitution Article XIIID with respect to the proposed rates. At this hearing, all interested persons will be permitted to present oral and written testimony with respect to the proposed rates and methodology.

SECTION 3. Direct staff to give notice of the hearing in the manner required by law.

SECTION 4. The City will accept and tabulate protests against the proposed rate revision following the procedures set forth in Exhibit “B” to this Resolution, which is incorporated herein by reference
* * *

319
ADOPTED September 13, 2022, by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
320

EXHIBIT A
Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
20 32 64 96
1 Pickup Per Week $36.22 $43.21 $85.06 $127.59
Residential customers are billed based on their Garbage Cart size.

The monthly rate above includes the following:

One (1) Garbage Cart provided to customer
Curbside Household Hazardous Waste Collection
One (1) 64-Gallon Recycling Cart and (1) 96-Gallon Yard Waste Cart Cart Size (in Gallons)

RESIDENTIAL CARTS
321
20 32 64 96
1 $46.21 $51.31 $99.22 $143.41
2 95.06 105.63 200.21 293.76
3 141.53 157.23 303.77 445.79
4 194.31 215.89 408.45 603.02
5 245.84 273.13 519.19 762.38
6 307.60 341.77 632.69 959.67
7 374.71 416.33 740.66 1,119.60
The monthly rate above includes the following:

One (1) Garbage Cart
Recycling Cart
32 64 96
1 $35.94 $69.47 $100.39
2 73.94 140.15 205.62
3 110.06 212.63 312.05
4 151.14 285.93 422.10
5 191.20 363.44 533.66
6 239.26 442.85 671.76
7 291.45 518.46 783.72
Note: Organics containers are charged at seventy percent (70%) of the similar Garbage commercial cart rate above container size and service levels for Garbage, representing a thirty percent (30%) discount
Cart Size (in Gallons)
# of Pickups Per Week

COMMERCIAL CARTS
Cart Size (in Gallons)
# of Pickups Per Week

COMMERCIAL CARTS ORGANICS
Attachment L (continued)
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
322
1 2 3 4 6
1 $240.64 $484.06 $730.04 $996.57 $1,532.65
2 489.93 976.06 1,468.88 2,010.36 3,108.45
3 743.49 1,472.71 2,212.06 3,024.18 4,672.53
4 1,000.01 1,972.97 2,957.46 4,049.52 6,223.29
5 1,258.59 2,480.30 3,705.43 5,079.19 7,796.16
6 1,570.78 2,928.14 4,498.23 6,151.58 9,424.87
7 1,853.33 3,467.88 5,296.56 7,246.41 11,038.73
The monthly rate above includes the following:

One (1) Garbage Bin
Recycling container at customer's requested size
1 2 3 4 6
1 $168.46 $338.85 $511.02 $697.60 $1,072.86
2 342.94 683.23 1,028.25 1,407.25 2,175.92
3 520.43 1,030.90 1,548.45 2,116.92 3,270.75
4 700.01 1,381.07 2,070.22 2,834.67 4,356.31
5 881.02 1,736.18 2,593.79 3,555.42 5,457.32
6 1,099.56 2,049.69 3,148.77 4,306.14 6,597.40
7 1,297.34 2,427.52 3,707.59 5,072.49 7,727.11
Note: Organics containers are charged at seventy percent (70%) of the similar garbage container size above and service level for garbage, representing a thirty percent (30%) discount

COMMERCIAL BINS
Bin Size (in Cubic Yards)
# of Pickups Per Week

COMMERCIAL BINS ORGANICS
Bin Size (in Cubic Yards)
# of Pickups Per Week
Attachment L (continued)
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
323
Commercial Waste 3 Yard Compactor $1,753.01
Solid Waste Compactor Rate Per Yard $134.87
The monthly fee above includes the following:

Recycling container at customer's requested size

GARBAGE COMPACTORS
Attachment L (continued)
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
324
No. Additional Service Category Reference Agency-Approved Maximum Rate
Description
1 Single-Family Dwelling
Backyard Collection Service Section 5.02.A
See Maximum Rate
in the table at the
end of this
Attachment
See Maximum Rate in the
table at the end of this
Attachment
2 Long Distance Service for
MFD, Mixed Use, and
Commercial Accounts (Note:
only applicable to Containers
with wheels)
Section 5.02.B,

5.02.C; 8.02 B
A - No more than
10% of base
monthly Maximum
Rate of the
Collection Rate for
each Container
requiring Long
Distance Service
B - 25% of base
monthly Rate of the
Collection Rate for
each Container
requiring Long
Distance Service
A - Distance greater than 50
feet and less than or equal
to 100 feet
B - Distance greater than 100
feet
Distance shall be measured
from the face of the curb, or
from the edge of the
roadway nearest the closest
edge of the Container, if
there is no curb.

No. Additional Service Category Reference Agency-Approved Maximum Rate
Description
3 Container Relocation Service Section 5.02.B and

8.02.B
A - 12% of base
monthly Rate of the
Collection Rate for
each Container
requiring Container
Relocation Service
B - 27% of base
monthly Rate of the
Collection Rate for
each Container
requiring Container
Relocation Service
A - Distance greater than 50
feet and less than or equal
to 100 feet
B - Distance greater than 100
feet
Distance shall be measured
from the face of the curb, or
from the edge of the
roadway nearest the closest
edge of the Container, if
there is no curb.
4 On-Call, Pick-up for SFD, MFD,
Mixed Use, and Commercial
Customers
Section 5.02.A,

5.02.B, and 5.02.C
25% of the base
monthly Rate for
the size of
Container Collected
once per week.

Per Collection event per
Container for Collection
requested by Customer
Schedule Q
Additional Services
The following table specifies Maximum Allowable Rates for Additional Services. These Maximum Rates shall be adjusted annually in accordance with Article 11. 325
No. Additional Service Category Reference Agency-Approved Maximum Rate
Description
5 Return Trip (SFD, MFD, Mixed
Use, or Commercial)
Sections

5.02.A, B, C;

5.03.A, B, C;

5.04.A, B, C
$19.35 for SFD
$19.35 for
Commercial, Mixed
Use, and MFD
Per Collection event (i.e.
request to return and
provide Collection service
after the Customer failed to
properly set out their
Container(s) for regularly
scheduled Collection)
6 Additional Targeted
Recyclable Materials or
Organic Materials Cart Service
for SFD
Sections

5.03.A and

5.04.A
$1.27 per Recycling
Cart
$3.85 per Organic
Materials Cart
Per Cart month (any Cart
size). Six month minimum
charge required. Includes
one-time Cart delivery upon
start of service and removal
of Cart when service is
discontinued by Customer.
7 Additional On-Call Bulky Item
Collection
Sections

5.05,

5.06 $105.20
Per Bulky Item Collection
event (in addition to the
events provided at no
charge to Customer
pursuant to Section 5.12)
8 Collect Contaminated
Targeted Recyclable Materials
or Organic Materials
Container
Section 6.03.A and

8.02.F
25% of base
monthly Solid
Waste Rate for the
size of Container
Collected once per
week
plus
Return Trip Fee if
applicable
Per Collection event for
Container with
Contamination Level greater
than the maximum level
pursuant to Table 1 in
Section 6.02.B
9 Lock Service (Key Service) Section 8.02.B
A - $10.96 per usage
B - $12.25 per usage
Monthly cost:

A-Residential Customers
B-Commercial Customers
10 Lock Purchase Section 8.02.B $21.93 per lock Per lock Schedule Q
Additional Services (Continued)
326
No. Additional Service Category Reference Agency-Approved Maximum Rate
Description
11 Overage Service Section 8.02.G
100% of the base
monthly Solid
Waste Collection
Rate
Per Collection event (after
the first two events)
12 Overage Bags Cost Section 8.02.G
50% of the base
monthly Solid
Waste Collection
Rate or $10.31
minimum
Per bag
13 Container Cleaning Service Section 8.05.D
A - $64.50
B - $109.64
A - per Cart
B - per Bin or Drop-Box
Charge only applies to
cleaning or Container
exchange in addition to the
service to be provided at no
charge to the Customer
pursuant to Section 8.05.D.
14 Dirty Cart Replacement
(Exchange) Service Section 8.05.D
A - $83.85
B - $96.74
C - $109.64
A - per 32 gallon Cart
B - per 64 gallon Cart
C - per 96 gallon Cart
Charge only applies to
cleaning or Container
exchange in addition to the
service to be provided at no
charge to the Customer
pursuant to Section 8.05.D.
15 Additional Confidential
Document Destruction Service
Event
Section 5.07 $1,547.84 Per event
Schedule Q
Additional Services (Continued)
327
No. Additional Service Category Reference Agency-Approved Maximum Rate
Description
16 Additional Compost Material
Delivery Section 5.11
A - $161.22 per
delivery
B - $322.47 per
delivery
A - "one-way" only delivery
by Contractor where
Contractor delivers to and
unloads compost at an
Agency-approved location
B- "Round-trip" delivery by
Contractor where Contractor
delivers compost in a Drop
Box to an Agency-approved
location and returns at a
later time or date to pick up
the Drop Box and any
remaining compost (charge
includes the delivery of and
later pick-up of the Drop
Box)
17 Community Drop-Off Events Section 5.13
$26,313.47 per
event or day
Per event or day targeting
5,000 households. Does not
include disposal or public
education expenses.

No. Additional Service Category Reference Agency-Approved Maximum Rate
Description
18 Collection for AgencySponsored and Non-Agency
sponsored Community Events
Section 5.08
A - $3,869.62
B - $6,449.37
C - $9,319.36
A - One day event with a
projected 2,500 or fewer
attendees
B - One (1) or two (2) day
events with a projected
2,501 to 7,500 attendees per
day C - One (1) or two
(2) day events with a
projected 7,501 to 10,000
attendees per day.

Schedule Q
Additional Services (Continued)
328
Distance from Curb** One (1) Solid
Waste Cart
Two (2) Solid
Waste Carts
Three (3) Solid
Waste Carts
Four (4) Solid
Waste Carts
Distance <= 50 feet $23.20 $37.03 $74.10 $111.13
50 < Distance <= 100 feet 27.09 40.92 77.96 115.02
100 < Distance <= 150 feet 30.94 44.78 81.81 118.88
150 < Distance <= 200 feet 34.83 48.66 85.69 122.76
200 < Distance <= 250 feet 38.69 52.52 89.58 126.63
250 < Distance <= 300 feet 42.57 56.39 93.44 130.48
300 < Distance <= 350 feet 46.44 60.25 97.32 134.35
Each additional 50 foot
increment over 350 feet
** Distance shall be measured from the face of the curb, or from the edge of the roadway nearest the closest edge of the Cart, if there is no curb.

Backyard Collection Service Charge for Single Family Dwellings (Section 5.02.A)
Amount equal the difference between the Charge for 250 to 300 feet and 300 to 350 feet
* Backyard Collection Service Charges are charges added to the base monthly Rate for Single-Family Collection service, and cover the provision of Backyard Collection Service for all Customer's Solid Waste, Recyclable Materials, and Organic Materials Carts.

Schedule Q
Additional Services (Continued)
329

EXHIBIT B

GUIDELINES FOR THE SUBMISSION AND TABULATION OF PROTESTS

SOLID WASTE FEES
Submission of Protests

1. Any property owner or solid waste customer may submit a written protest to the City Clerk, either by delivery to the office of the City Clerk or by submitting the protest at the public hearing. Protests must be received by the end of the public hearing. No postmarks will be accepted.

2. Each protest must identify the affected property (by assessor’s parcel number or street address) and include the signature of the record property owner or solid waste customer. Email protests cannot be accepted. Although oral comments at the public hearing will not qualify as a formal protest unless accompanied by a writing, the City Council welcomes input from the community during the public hearing on the proposed fees.

3. If a parcel served by the City is owned by more than a single record owner or customer, each owner or customer may submit a protest, but only one protest will be counted per parcel and any one protest submitted in accordance with these rules will be sufficient to count as a protest for that property.

4. In order to be valid a protest must bear the original signature of the record owner or customer with respect to the property identified on the protest. Protests not bearing the original signature of a record owner or customer shall not be counted.

5. Any person who submits a protest may withdraw it by submitting to the City Clerk a writing request that the protest be withdrawn. The withdrawal of a protest shall contain sufficient information to identify the affected parcel and the name of the record owner or record customer who submitted both the protest and the request that it be withdrawn.

6. A fee protest proceeding is not an election.

7. To ensure transparency and accountability in the fee protest tabulation, protests shall constitute disclosable public records from and after the time they are received.

Tabulation of Protests.

1. The City Clerk shall determine the validity of all protests. The City Clerk shall not accept as valid any protest if the City Clerk determines that any of the following conditions exist:
330
a. The protest does not identify a property served by the City. b. The protest does not bear an original signature of a record owner of the parcel identified on the protest or of the customer on the parcel. c. The protest does not state its opposition to the proposed fees. d. The protest was not received by the City Clerk before the close of the public hearing on the proposed fees.
e. A request to withdraw the protest is received prior to the close of the public hearing on the proposed fees.

3. The City Clerk’s decision that a protest is not valid or does not apply to a specific fee shall constitute a final action of the City and shall not be subject to any internal appeal.

4. A majority protest exists if written protests are timely submitted and not withdrawn by the record owners of a majority of the properties subject to the proposed fee.

5. At the conclusion of the public hearing, the City Clerk shall complete the tabulation of all protests received, including those received during the public hearing and shall report the results of the tabulation to the City Council upon completion. If review of the protests received demonstrates that the number received is manifestly less than one-half of the parcels served by the City with respect to the fee which is the subject of the protest, then the Clerk may advise the City Council of the absence of a majority protest without determining the validity of all protests. 331
332
333
SBWMA- Adjusted
Adjusted April 2020 April 2022 2023
2021 CPI CPI Rate Year
Cost Description Basis for Adjustment Values Index Index Compensation Direct Labor Related
Wages for CBA's CPI-W: CWURS49BSA0 1,310,584 290.304 322.021 1,453,771 Benefits for CBA's CPI-W-Medical: CUURS49BSAM 608,287 548.136 573.254 636,161 Payroll Taxes Effective Rate: 8.1% 109,005 na na 117,755 Workers Compensation CPI-W: CWURS49BSA0 93,961 290.304 322.021 104,227 Direct Fuel Costs CPI-U-Motor Fuel: CUURS49BSETB 169,992 209.994 414.030 335,161 General Expenses Direct CPI-U: CUURS49BSA0 191,163 298.074 324.878 208,353 General Expenses Indirect CPI-U: CUURS49BSA0 1,020,220 298.074 324.878 1,111,962 General Expenses Depreciation Fixed 281,317 na na 281,317 Profit Calculation Operating Ratio of 90.5% 397,271 na na 445,997 Interest Fixed 73,679 na na 73,679
Performance Incentives Based on Annual Report - na na - Performance Disincentives Based on Annual Report - na na (5,459) Base Contractor's Compensation 4,255,478 4,762,925
Disposal Cost Component (i) Projected Next Rate Year 1,732,663 1,745,620 Disposal Cost Component (ii) Actual Prior Year 1,772,859 Disposal Cost Component (iii) Less Projected Prior Year (1,789,017) Agency Payments 2,051,120 2,281,109
Total Contractor Compensation 8,039,261 8,773,496
2023
Total Contractor Compensation 8,773,496
Cap Carry Forward 11.11 -
Total Target Revenue 8,773,496
2022 Target Revenue 8,464,059
Adjustment Multiplier 3.66%
5% Cap Calculation 11.11
Adjusted Contractor's Compensation 2023 4,768,384
Adjusted Contractor's Compensation 2022 4,452,208
difference 316,176
5 % of Adjusted Contractor's Compensation 2022 222,610
Potential Cap Carry Forward 93,565
Recology San Mateo County
City of Belmont
Refuse Rate Index Calculation
334
Recology San Mateo County
City of Belmont
Actual Disposal Calculation (Apr 2021 - Mar 2022)
Rate Year 2023

BELMONT CITY VEHICLES
Solid Bulky Solid
Water
Heater
Waste Green/Org Food Items Waste Green/Org Dirt C&D Concrete Appliances APR 633.87 391.50 33.11 1.11 28.34 5.94 0.00 0.00 2.80 0.00 MAY 599.32 368.33 36.95 1.36 47.08 0.00 10.40 0.00 36.50 0.00 JUN 624.24 404.65 39.25 2.49 47.71 6.75 28.13 2.80 42.28 0.00 JUL 628.11 360.34 36.59 1.85 56.03 11.02 0.00 0.00 30.47 0.00 AUG 602.61 362.00 38.69 3.15 48.42 3.43 0.00 0.00 7.93 0.00 SEP 617.50 351.65 40.09 1.53 32.50 1.84 0.00 0.44 17.50 0.00 OCT 602.23 361.29 40.45 1.91 5.95 8.71 35.45 0.00 20.47 0.00 NOV 639.97 428.87 44.39 2.46 45.34 2.19 47.96 0.00 0.00 0.00 DEC 684.33 413.94 46.68 4.98 40.83 7.94 117.87 0.78 10.85 0.00 subtotal Apr - Dec 2021 5632.18 3442.57 356.20 20.84 352.20 47.82 239.81 4.02 168.80 0.00 JAN 600.65 380.43 37.54 0.00 47.46 1.85 1.52 0.00 18.12 0.00 FEB 537.70 326.16 36.66 4.63 34.00 6.61 41.25 0.25 1.81 0.00 MAR 622.25 350.44 40.47 2.94 55.90 2.04 3.03 0.00 30.77 0.00 subtotal Jan - Mar 2022 1760.60 1057.03 114.67 7.57 137.36 10.50 45.80 0.25 50.70 0.00 SBWMA Total 7392.78 4499.60 470.87 28.41 489.56 58.32 285.61 4.27 219.50 0.00 Rate Apr 2021 - Dec 2021 $127.00 $139.00 $141.00 $127.00 $127.00 $139.00 $113.00 $127.00 $113.00 $15.00 Rate Jan 2022 - Mar 2022 $130.00 $143.00 $144.00 $130.00 $130.00 $143.00 $115.00 $130.00 $115.00 $15.00 Per Item Cost $944,164.86 $629,672.52 $66,736.68 $3,630.78 $62,586.20 $8,148.48 $32,365.53 $543.04 $24,904.90 $0.00 Total Disposal $1,772,858.99
335
Recology San Mateo County
City of Belmont
Projected Disposal Calculation (Apr 2022 - Mar 2023)
Rate Year 2023

BELMONT CITY VEHICLES
Solid Bulky Solid Wood Each
Waste Green/Org Food Items Waste Green/Org Dirt C&D Concrete Refrigerator APR (Actual) 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 MAY (Actual) 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 JUN (Actual) 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 JUL 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 AUG 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 SEP 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 OCT 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 NOV 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 DEC 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 subtotal Apr - Dec 5428.98 3334.92 408.33 21.81 323.91 42.84 15.30 0.00 26.67 0.00 JAN 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 FEB 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 MAR 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 subtotal Jan - Mar 1809.66 1111.64 136.11 7.27 107.97 14.28 5.10 0.00 8.89 0.00 SBWMA Total 7238.64 4446.56 544.44 29.08 431.88 57.12 20.40 0.00 35.56 0.00 Rates Apr 2022 - Dec 2022 $130.00 $143.00 $144.00 $130.00 $130.00 $143.00 $115.00 $130.00 $115.00 $53.00 Rates Jan 2023 - Mar 2023 $137.00 $145.00 $145.00 $130.00 $137.00 $145.00 $115.00 $120.00 $115.00 $53.00 Per Item Cost $ 953,690.82 $ 638,080.92 $ 78,535.92 $ 3,780.40 $ 56,900.19 $ 8,196.72 $ 2,346.00 $ - $ 4,089.40 $ - Total Disposal $ 1,745,620.36
336
Recology San Mateo County
Incentives and Disincentives
Year 2021
Member Agency
SFD and
Commercial
Missed P/U
Events
Average
Speed of
Answer
90 Second
Max Hold
Time
Diversion
Maximum
Incentives and
Disincentives1
Belmont $750 $3,328 $1,941 $6,513 $5,459
Burlingame $1,650 $7,431 $4,335 $14,544 $12,166
East Palo Alto $450 $5,398 $3,149 $10,565 $8,089
Foster City $550 $4,357 $2,542 $8,528 $6,716
Hillsborough $450 $1,243 $725 $2,433 $2,209
Menlo Park $700 $6,616 $3,860 $12,949 $10,063
North Fair Oaks $700 $2,534 $1,479 $4,961 $4,287
Redwood City $2,750 $14,806 $8,638 $28,980 $23,704
San Carlos $1,600 $5,388 $3,144 $10,547 $9,226
San Mateo $4,600 $17,062 $9,954 $33,395 $28,746
County Franchised Area $450 $1,753 $1,023 $3,432 $2,931 WBSD $700 $745 $435 $1,458 $1,754
Total $15,350 $70,660 $41,224 $138,305 $115,350
Negative number in parenthesis denotes Incentive payment due to Recology. 1 In accordance with Attachment I, the maximum annual incentive or disincentive, except for SingleFamily and Commercial Missed Pick-up Events is $100,000 or ($100,000).

Performance Incentive/Disincentive Payments 2021
Performance Incentives and Disincentives
337
Adjustment Multiplier 3.66%

RESIDENTIAL RATES
R20G RES WASTE 20G 36.22
R32G RES WASTE 32 GAL 43.21
R64G RES WASTE 64 GAL 85.06
R96G RES WASTE 96 GAL 127.58
COMMERCIAL/MULTI FAMILY RATES Times Per Week
1 2 3 4 5 6 7
C1YG COMML WASTE 1 YD 240.64 489.93 743.49 1,000.01 1,258.59 1,570.78 1,853.33 C1YO COMML ORGANICS 1 YD 168.46 342.94 520.43 700.01 881.02 1,099.56 1,297.34 C15CG COMML WASTE 1.5 YD COMPACTOR 876.67 1,753.36 2,630.03 3,506.67 4,383.35 5,260.01 6,136.68 C15CO COMML ORGANICS 1.5 YD COMPACTOR 613.67 1,227.33 1,841.00 2,454.67 3,068.34 3,682.00 4,295.67 C20G COMML WASTE 20 GALLON 46.21 95.06 141.53 194.31 245.84 307.60 374.71 C2YG1 COMML WASTE 2 YD 484.06 976.06 1,472.71 1,972.97 2,480.30 2,928.14 3,467.88 C2YO COMML ORGANICS 2 YD 338.85 683.23 1,030.90 1,381.07 1,736.18 2,049.69 2,427.52 C32G COMML WASTE 32 GALLON 51.31 105.63 157.23 215.89 273.13 341.77 416.33 C32O COMML ORGANICS 32 GAL 35.94 73.94 110.06 151.14 191.20 239.26 291.45 C3CG COMML WASTE 3 YD COMPACTOR 1,753.01 0.00 0.00 0.00 0.00 0.00 0.00 C3YG COMML WASTE 3 YD 730.04 1,468.88 2,212.06 2,957.46 3,705.43 4,498.23 5,296.56 C3YO COMML ORGANICS 3 YD 511.02 1,028.25 1,548.45 2,070.22 2,593.79 3,148.77 3,707.59 C4YG1 COMML WASTE 4 YD 996.57 2,010.36 3,024.18 4,049.52 5,079.19 6,151.58 7,246.41 C4YO COMML ORGANICS 4 YD 697.60 1,407.25 2,116.92 2,834.67 3,555.42 4,306.14 5,072.49 C64G COMML WASTE 64 GALLON 99.22 200.21 303.77 408.45 519.19 632.69 740.66 C64O COMML ORGANICS 64 GAL 69.47 140.15 212.63 285.93 363.44 442.85 518.46 C6YG1 COMML WASTE 6 YD 1,532.65 3,108.45 4,672.53 6,223.29 7,796.16 9,424.87 11,038.73 C6YO COMML ORGANICS 6 YD 1,072.86 2,175.92 3,270.75 4,356.31 5,457.32 6,597.40 7,727.11 C96G COMML WASTE 96 GALLON 143.41 293.76 445.79 603.02 762.38 959.67 1,119.60 C96O COMML ORGANICS 96 GAL 100.39 205.62 312.05 422.10 533.66 671.76 783.72 SOLID WASTE COMPACTOR RATE PER YARD 134.87
Rate Year 2023
Recology San Mateo County
City of Belmont
Attachment L
338
Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 234.648 236.626 236.890 238.445 240.864 236.454 237.097 235.572 238.622 2013 240.262 241.764 243.052 242.903 243.711 242.602 242.125 241.141 243.109 2014 245.148 247.932 250.085 249.877 250.508 247.680 248.326 247.097 249.555 2015 249.809 252.875 254.736 256.060 256.107 255.492 253.910 252.041 255.780 2016 257.141 259.386 261.017 262.326 264.026 263.222 260.830 258.715 262.946 2017 265.569 268.896 269.508 269.827 271.272 271.342 268.990 267.426 270.555 2018 275.699 278.039 280.219 281.536 283.183 283.278 279.572 277.035 282.110 2019 284.758 288.266 288.581 288.514 291.707 289.456 288.192 286.615 289.770 2020 292.010 290.304 292.420 293.062 294.442 295.687 292.601 291.297 293.906 2021 297.170 302.294 304.971 307.423 309.656 312.019 304.602 300.275 308.928 2022 316.463 322.021 328.137 320.408
Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 403.519 404.765 404.597 409.331 409.023 408.341 406.387 404.188 408.585 2013 416.539 412.620 425.278 425.098 426.542 431.700 421.983 416.722 427.243 2014 440.573 448.951
2016 486.042 486.894 488.508 486.068
2017 485.741 491.228 493.123 489.826 493.957 493.055 490.720 489.198 492.241 2018 500.434 504.092 511.465 508.677 510.198 539.595 508.623 502.138 515.108 2019 519.339 537.178 538.854 551.902 554.645 541.173 532.698 549.647 2020 545.970 548.136 549.438 548.733 549.432 545.016 548.802 549.120 548.484 2021 555.065 555.675 551.518 550.215 556.119 561.352 553.445 552.681 554.209 2022 567.774 573.254 583.038 571.613
1982-84=100
2012 to 2022
Medical care
San Francisco-Oakland-Hayward, CA
All items
1982-84=100
2012 to 2022
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUURS49BSAM
Not Seasonally Adjusted
Medical care in San Francisco-Oakland-Hayward, CA, all
urban consumers, not seasonally adjusted
San Francisco-Oakland-Hayward, CA
All items in San Francisco-Oakland-Hayward, CA, urban wage earners and clerical workers, not seasonally adjusted
CPI for Urban Wage Earners and Clerical Workers (CPI-W) Original Data Value
CWURS49BSA0
Not Seasonally Adjusted
339
Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 280.517 302.724 327.962 317.962 325.378 301.192 285.891 310.778 316.030 336.090 288.389 268.569 305.124 309.289 300.958 2013 274.605 306.602 309.846 300.682 306.012 303.270 301.401 291.569 299.931 284.084 273.022 270.990 293.501 300.170 286.833 2014 273.919 279.844 297.341 313.061 315.401 312.578 308.499 297.489 287.115 268.189 242.194 216.165 284.316 298.691 269.942 2015 193.209 209.050 250.324 240.323 269.479 253.019 257.434 247.551 223.945 208.973 202.552 196.642 229.375 235.901 222.850 2016 195.010 178.296 191.074 202.420 208.843 213.139 209.663 197.818 204.532 207.138 200.994 200.151 200.757 198.130 203.383 2017 208.379 212.552 223.591 224.219 229.642 227.099 218.805 221.035 233.253 227.464 236.297 232.445 224.565 220.914 228.217 2018 239.938 248.958 254.538 264.816 276.100 277.231 275.852 273.651 274.578 284.833 278.051 264.929 267.790 260.264 275.316 2019 255.355 251.375 259.552 290.028 297.662 280.364 272.104 263.865 268.181 300.258 286.954 261.728 273.952 272.389 275.515 2020 254.945 251.171 235.263 209.994 208.040 220.382 229.239 236.785 239.082 236.633 236.201 237.489 232.935 229.966 235.905 2021 246.145 253.600 277.844 289.079 301.702 310.278 315.657 322.785 321.903 330.112 343.726 342.260 304.591 279.775 329.407 2022 340.187 343.538 408.338 414.030 435.497 464.377 400.995 Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 236.880 238.985 239.806 241.170 242.834 239.533 239.650 238.099 241.201 2013 242.677 244.675 245.935 246.072 246.617 245.711 245.023 243.894 246.152 2014 248.615 251.495 253.317 253.354 254.503 252.273 251.985 250.507 253.463 2015 254.910 257.622 259.117 259.917 261.019 260.289 258.572 256.723 260.421 2016 262.600 264.565 266.041 267.853 270.306 269.483 266.344 263.911 268.777 2017 271.626 274.589 275.304 275.893 277.570 277.414 274.924 273.306 276.542 2018 281.308 283.422 286.062 287.664 289.673 289.896 285.550 282.666 288.435 2019 291.227 294.801 295.259 295.490 298.443 297.007 295.004 293.150 296.859 2020 299.690 298.074 300.032 300.182 301.736 302.948 300.084 299.109 301.059 2021 304.387 309.419 309.497 311.167 313.265 315.805 309.721 306.724 312.718 2022 320.195 324.878 330.539 323.408
San Francisco-Oakland-Hayward, CA
All items
1982-84=100
2012 to 2022
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUURS49BSA0
Not Seasonally Adjusted
All items in San Francisco-Oakland-Hayward, CA, all urban consumers, not seasonally adjusted
2012 to 2022
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUURS49BSETB
Not Seasonally Adjusted
Motor fuel in San Francisco-Oakland-Hayward, CA, all urban consumers, not seasonally adjusted
San Francisco-Oakland-Hayward, CA
Motor fuel
1982-84=100
340

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

For Rate Years Eleven (2021) through the remaining Rate Years in the Term, the Maximum Rate for additional services specified in Attachment Q shall be adjusted annually in accordance with Section 11.05.

The Maximum Rate for additional services for Rate Year Ten (2020) shall be the Maximum Rates for Rate Year Ten (2020) as determined under the 2009 Franchise Agreement. These amounts will be adjusted as provided in Section 11.05 of this Agreement to determine the Maximum Rates for Rate Year Eleven (2021).

Two additional services are included in this Attachment Q there were not in Attachment Q of the 2009 Franchise Agreement. The two new services are Container Relocation Service and AgencySpecific Reporting for Abandoned Waste Collections. Maximum Rates for these services are presented in the table below.

Charges for Additional Services may not exceed the Maximum Rates approved by the City for the respective Rate Year.

Service Reference
AgencyApproved
Maximum Rate
Description
Additional Services for Customers
1 Single-Family Dwelling
Backyard Collection
Service
Section

5.02.A
See Maximum
Rate in the table at
the end of this
Attachment
See Maximum Rate in the table
at the end of this Attachment
2 Long Distance Service for
MFD, Mixed Use, and
Commercial Accounts
(Note: only applicable to
Containers with wheels)
Sections

5.02.B,

5.02.C; and

8.02.B
A – No more than
10% of base
monthly Maximum
Rate of the
Collection Rate for
each Container
requiring Long
Distance Service
B – 25% of base
monthly Rate of
the Collection Rate
for each Container
requiring Long
Distance Service
A – Distance greater than 50 feet
and less than or equal to 100
feet
B – Distance greater than 100
feet
Distance shall be measured from
the face of the curb, or from the
edge of the roadway nearest the
closest edge of the Container, if
there is no curb.
341

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

Service Reference
AgencyApproved
Maximum Rate
Description
3 Container Relocation
Service
Sections

5.02B and

8.02B
A – 12% of base
monthly rate of the
Collection Rate for
each Container
requiring Container
Relocation Service
B – 27% of base
monthly Rate of
the Collection Rate
for each Container
requiring Container
Relocation Service
A – Distance greater than 50 feet
and less than or equal to 100
feet
B – Distance greater than 100
feet
Distance shall be measured from
the face of the curb, or from the
edge of the roadway nearest the
closest edge of the Container, if
there is no curb.
4 On-Call Pick-up for SFD,
MFD, Mixed Use, and
Commercial Customers
Sections

5.02.A,

5.02.B, and

5.02.C
25% of the base
monthly Rate for
the size of
Container
Collected once per
week
Per Collection event per
Container for Collection
requested by Customer
5 Return Trip (SFD, MFD,
Mixed Use, or
Commercial)
Sections

5.02.A, B, C;

5.03.A, B, C;

5.04.A, B, C
$19.35 for SFD
$19.35 for
Commercial, Mixed
Use, and MFD
Per Collection event (i.e.,
request to return and provide
Collection service after the
Customer failed to properly set
out their Container(s) for
regularly scheduled Collection)
6 Additional Targeted
Recyclable Materials or
Organic Materials Cart
Service for SFD
Sections

5.03.A and

5.04.A
$1.27 per
Recycling Cart
$3.85 per Organic
Materials Cart
Per Cart per month (any Cart
size). Six month minimum
charge required. Includes onetime Cart delivery upon start of service and removal of Cart
when service is discontinued by
Customer.
7 Additional On-Call Bulky
Item Collection
Sections

5.05, 5.06
$105.20 Per Bulky Item Collection event
(in addition to the events
provided at no charge to
Customer pursuant to Section

5.12)
342

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

Service Reference
AgencyApproved
Maximum Rate
Description
8 Collect Contaminated
Targeted Recyclable
Materials or Organic
Materials Container
Section

6.03.A and

8.02.F
25% of the base
monthly Solid
Waste Rate for the
size of Container
Collected once per
week
plus
Return Trip Fee if
applicable
Per Collection event for
Container with Contamination
Level greater than the maximum
level pursuant to Table 1 in
Section 6.02.B
9 Lock Service (Key
Service)
Section

8.02.B
A – $10.96 per
usage
B – $12.25 per
usage
Monthly cost:

A – Residential Customers
B – Commercial Customers
10 Lock Purchase Section

8.02.B
$21.93 per lock Per lock
11 Overage Service Section

8.02.G
100% of the base
monthly Solid
Waste Collection
Rate
Per Collection event (after the
first two events)
12 Overage Bags Cost Section

8.02.G
50% of the base
monthly Solid
Waste Collection
Rate or $10.31
minimum
Per bag
13 Container Cleaning
Service
Section

8.05.D
A – $64.50
B – $109.64
A – per Cart
B – per Bin or Drop-Box
Charge only applies to cleaning
or Container exchange in
addition to the service to be
provided at no charge to the
Customer pursuant to Section

8.05.D
343

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

Service Reference
AgencyApproved
Maximum Rate
Description
14 Dirty Cart Replacement
(Exchange) Service
Section

8.05.D
A – $83.85
B – $96.74
C – $109.64
A – per 32 gallon Cart
B – per 64 gallon Cart
C – per 96 gallon Cart
Charge only applies to cleaning
or Container exchange in
addition to the service to be
provided at no charge to the
Customer pursuant to Section

8.05.D
Additional Services for Agency
15 Additional Confidential
Document Destruction
Service Event
Section 5.07 $1,547.84 Per event
16 Additional Compost
Material Delivery
Section 5.11 A – $161.22 per
delivery
B – $322.47 per
delivery
A – “one-way” only delivery by
Contractor where Contractor
delivers to and unloads compost
at an Agency-approved location
B – “Round-trip” delivery by
Contractor where Contractor
delivers compost in a Drop Box
to an Agency-approved location
and returns at a later time or
date to pick up the Drop Box and
any remaining compost (charge
includes the delivery of and later
pick-up of the Drop Box)
17 Community Drop-Off
Events
Section 5.13 $26,313.47 per
event or day
Per event or day targeting 5,000
households. Does not include
disposal or public education
expenses.
18 Collection for AgencySponsored and NonAgency sponsored Community Events
Section 5.08 A – $3,869.62
B – $6,449.37
C – $9,674.07
A – One day event with a
projected 2,500 or fewer
attendees
B – One (1) or two (2) day
events with a projected 2,501 to
7,500 attendees per day
C – One (1) or two (2) day
events with a projected 7,501 to
10,000 attendees per day
344

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

Backyard Collection Service Charge
for Single-Family Dwellings*
(Section 5.02.A)
Distance from Curb**
Backyard
Charge for
Customers
with One (1)
Solid Waste
Cart
Backyard
Charge for
Customers with
Two (2) Solid
Waste Carts
Backyard
Charge for
Customers with
Three (3) Solid
Waste Carts
Backyard
Charge for
Customers with
Four (4) Solid
Waste Carts
Distance <= 50 feet $23.20 $37.03 $74.10 $111.13
50 < Distance <= 100 feet $27.09 $40.92 $77.96 $115.02
100 < Distance <= 150 feet $30.94 $44.78 $81.81 $118.88 150 < Distance <= 200 feet $34.83 $48.66 $85.69 $122.76 200 < Distance <= 250 feet $38.69 $52.52 $89.58 $126.63 250 < Distance <= 300 feet $42.57 $56.39 $93.44 $130.48 300 < Distance <= 350 feet $46.44 $60.25 $97.32 $134.35 Each additional 50 foot
increment over 350 feet
Amount equals the difference
between the Charge for 250 to 300 feet and 300 to 350 feet * Backyard Collection Service Charges are charges added to the base monthly Rate for Single-Family Collection service, and cover the provision of Backyard Collection Service for all of Customer’s Solid Waste, Recyclable Materials, and Organic Materials Carts.
** Distance shall be measured from the face of the curb, or from the edge of the roadway nearest the closest edge of the Cart, if there is no curb. 345
Draft Report
Review of the 2023 Solid Waste Rates
City of Belmont
August 2022
346
929 108th Ave NE, Suite 1300
Bellevue, WA 98004
August 29, 2022
Mr. Peter Brown
Public Works Director
City of Belmont
One Twin Pines Lane Suite 385
Belmont, California 94002
Subject: Review of the 2023 Solid Waste Rates Draft Report Dear Mr. Brown:

HDR Engineering, Inc. (HDR) was retained by the City of Belmont (City) to provide professional and technical rate services as they relate to the City’s solid waste utility. The City is a member of the South Bayside Waste Management Authority (SBWMA) and has a franchise agreement with Recology of San Mateo County (Recology) for solid waste collection services, including the collection of recycling and organic materials. Through the franchise agreement, the annual compensation for Recology’s services is contractually determined. Recology has provided to the City their calculation of the maximum rates for both regularly scheduled services, and additional services, for Rate Year 2023, based on their July 31st rate year 2023 application letter. The franchise agreement calls for the City to establish solid waste retail rates, but not at a level which exceeds the Contractor’s “Maximum Rates for Regularly Scheduled Services”.

HDR and the City have reviewed Recology’s calculations and this report summarizes our findings, conclusions, and recommendations. This report and HDR’s technical review were developed utilizing the City’s and Recology’s accounting, operating, and management records. HDR has relied upon this information to conduct our limited review, which provides the basis for our findings, conclusions, and recommendations contained in this report.

We appreciate the assistance provided by City staff, management, and City Council. More importantly, we appreciate the opportunity to work with City on this project.

Sincerely yours,
HDR Engineering, Inc.

Shawn Koorn
Associate Vice President
347
Table of Contents i
City of Belmont – Review of 2023 Solid Waste Rates
Executive Summary
Introduction .................................................................................................................. 1 Limitations of HDR’s Review .......................................................................................... 1 Overview of the Agreement........................................................................................... 2 Regularly Scheduled Service (Attachment L) – Review of Recology’s Calculated Maximum...................................................................................................................... 3 Additional Services (Attachment Q) – Review of Recology’s Calculated Maximum......... 4 Summary Conclusions and Recommendations............................................................... 5 City Council Review ....................................................................................................... 5 Summary of the Review of Solid Waste Rates................................................................ 5 1 Introduction and Overview of the Report

1.1 Introduction ........................................................................................................ 6

1.2 Limitations of HDR’s Review ................................................................................ 6

1.3 Organization of the Report.................................................................................. 7 2 Overview of the Agreement

2.1 Introduction ........................................................................................................ 8

2.2 Overview of the Agreement ................................................................................ 8

2.3 Regularly Scheduled Services (Attachment L) ...................................................... 9

2.4 Additional Services (Attachment Q)................................................................... 10

2.5 Summary ........................................................................................................... 11 3 Review of Recology’s Calculated Maximum Rates for Regularly Scheduled Services”

3.1 Introduction ...................................................................................................... 12

3.2 Overview of Recology’s 2023 Rate Application .................................................. 12

3.3 Overview of General Approach Used to Review the Costs................................. 13

3.4 Summary Conclusions of HDR’s Review of Maximum Rate Calculations............. 14

3.5 HDR’s Detailed Review of the Total Target Revenue Calculations...................... 14

3.5.1 CPI Value Adjustment........................................................................... 14

3.6 Conclusions Regarding the Calculation of the Maximum Rate ........................... 17 Table of Contents
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4 Review of the Proposed 2023 Solid Waste Rates

4.1 Introduction ...................................................................................................... 18

4.2 Residential Regularly Scheduled Service (Attachment L).................................... 18

4.3 Commercial Carts Regularly Scheduled Service (Attachment L).......................... 18

4.4 Commercial Waste Bins Regularly Scheduled Service ........................................ 19

4.5 Commercial Organics Bins Regularly Scheduled Service .................................... 20

4.6 Commercial Organics Carts Regularly Scheduled Service .................................. 21

4.7 Other Miscellaneous Solid Waste Rates............................................................. 22

4.8 Rate for Additional Services (Attachment Q)...................................................... 23

4.9 Summary ........................................................................................................... 23 5 Summary of the Solid Waste Rate Findings, Conclusions and Recommendations

5.1 Introduction ...................................................................................................... 24

5.2 Summary Findings, Conclusions and Recommendations.................................... 24

5.3 Looking Ahead – Future Rate Adjustment to 2024............................................. 24

5.4 Summary ........................................................................................................... 24 Technical Appendix A – Attachment L Rates – Regularly Scheduled Rates Technical Appendix B – Attachment Q Rates – Additional Services 349
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Introduction
The City of Belmont (City) is a member of the South Bayside Waste Management Authority (SBWMA) and on August 28, 2018, finalized an Amended and Restated Franchise Agreement (Agreement) with Recology of San Mateo County (Recology) for solid waste collection services, including the collection of recycling and organic materials. The Agreement is for the 15-year period of 2021 to 2035. Through the Agreement, the annual compensation for Recology’s collection and recycling services is contractually determined. At the same time, the Agreement calls for the City to establish and adopt their own solid waste rates, but not at a level which exceeds the Contractor’s “Maximum Rates for Regularly Scheduled and Additional Services”.

Ultimately, Recology bills the City’s customers for the solid waste services at the rates established and formally adopted by the Belmont City Council.

As a part of the overall rate setting process, Recology’s data and information is reviewed by an outside party prior to its use within the calculation of the City’s maximum rates. Once that data and information is confirmed, Recology calculates the “maximum rates for regularly scheduled and additional services” and provides a copy of those calculations to the City for their review and acceptance. This review and rate setting process is similar to the reviews that HDR has provided to the City annually since 2013. The City has requested that HDR conduct a formal review of Recology’s solid waste rate calculations for rate year 2023. This will be the third rate year reviewed under the terms and conditions of the current Agreement.

The Agreement contains specific language and exhibits related to the development of the maximum rates for a given year for both regularly scheduled services (Schedule L) and additional services (Schedule Q). Rate year 2021, the first year of the current Agreement,serves as the base year for adjusting rates in future years. HDR has reviewed the applicable portions of the Agreement as they pertain to the 2023 rate year1. From our understanding of the current Agreement and the rate setting requirements, HDR reviewed Recology’s submittal for the 2023 rate year. This study discusses the review undertaken by HDR for the 2023 rate year.

Limitations of HDR’s Review
HDR has provided a limited review of Recology’s maximum rate calculations for the 2023 rate year. As noted above, the data and information used by Recology to calculate the City’s maximum rates were independently reviewed by another outside firm. Given the outside review of Recology’s data and information, HDR and the City have assumed that the data and information input into Recology’s rate calculations are reasonable and appropriate. As part of the review, HDR did cross-check and verify the inputs into Recology’s model from the database of previously reviewed basic input data and information.

Within HDR’s review, four key items have been reviewed and verified. These included:
1 HDR assisted the City in negotiating a current franchise agreement with Recology and is very familiar with the requirements of the current agreement as it relates to rate setting (Article 11).

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• A review of Recology’s methodology for compliance with our understanding of the required methodology specific for the 2023 rate year based on the current Agreement. • A review of the data inputs and information used within the methodology to confirm that the costs and any other adjustments comply with the methodology for regularly scheduled services (Schedule L) for rate year 2023 as required in the current Agreement. • A review of the data inputs and methodology used to adjust additional services (Schedule Q) for the 2023 rate year to confirm the use of the appropriate cost index, as specified in the current Agreement.
• Confirmation/verification of the calculations (formulas) within the methodology as they apply to the 2023 rate year based on the current Agreement.

Overview of the Agreement
The current Agreement with Recology is intended to continue to provide the Belmont community with high-quality waste collection, waste reduction, recycling, and composting programs. In order to maximize the quality of services and waste-diversion potential, the City granted to Recology an exclusive right to provide these services within the City. In order to balance that exclusive right to provide these solid waste services against the costs/rates associated with that program, the parties needed to develop an approach or methodology that fairly compensated (and limited) the charges that Recology could charge the City’s customers. To address this requirement, Article 11 of the Agreement contains specific language, and a methodology, for annually establishing the maximum rates for the up-coming calendar year for both regularly scheduled (Schedule L) and additional services (Schedule Q).

The Agreement provides for an orderly process and
approach to establish rates for the City and compensation for Recology. The review being undertaken by the City and HDR is a part of that orderly process, and the City is
performing its due diligence to verify and confirm that the maximum rates calculated by Recology are in accordance
with the Agreement. The agreement stipulates this as
follows:

Article 11, “The Contractor’s Compensation, Pass-Through Costs and Rates” determines the annual compensation for Recology’s collection and recycling services. This calculation of annual compensation sets the Contractor’s “Maximum Rates for Regularly Scheduled Services” (Attachment L) and “Additional Services” (Attachment Q). Within the franchise agreement, Attachment L is established in 11.04 of Article 11, Annual Adjustment of Maximum Rates for Schedule Services. Attachment Q is established in 11.05 of Article 11, Annual Adjustment of Maximum Rates for Additional Services.

The review being undertaken
by the City and HDR is a part of
that orderly process, and the
City is performing its due
diligence to verify and confirm
that the maximum rates
calculated by Recology are in
accordance with the
Agreement.
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Regularly Scheduled Service (Attachment L) – Review of Recology’s Calculated Maximum
On July 31, 2022, Recology provided to the City a letter outlining their calculation of the rates for rate year 2023. The City retained HDR Engineering, Inc. (HDR) to provide the rate review of the proposed 2023 rates as has been performed annually since 2013, which was to confirm that the overall methodology is in conformance with the current Agreement. In addition, HDR also verified or confirmed that the proper cost data appeared to be used within the analysis, and that the mathematical calculations are correct. In providing this review, HDR also attempted to independently calculate the rate index used for Schedule Q rates (e.g., consumer price index (CPIU General)). This report details the City’s process to revise the maximum rates that may be charged for solid waste, recyclable materials, and organic materials collection services for rate year 2023.

The rates that Recology charges its customers include Recology (contractor) compensation, SBWMA costs to operate the Shoreway transfer facility, waste disposal costs, franchise fees, and other related charges. Article 11 of the Agreement provides the framework or methodology for the determination of the maximum rate for the upcoming year. In very simple terms, the Agreement calls for Recology to annually take the existing maximum rate that is in effect and multiply each rate by an “adjustment multiplier”. The adjustment multiplier is essentially a cost index to develop Total Target Revenue for the rate year.

The rate adjustment multiplier is composed of three elements; the 2023 Base Contractor’s Compensation based on CPI cost adjustments, the 2022 Performance Incentive/Disincentive adjustment, and the 2023 pass through costs which comprise both disposal and agency payments. In addition is a fourth element this year which is the reversal of the prior year disincentive for 2021. For 2023 these elements are a total rate index adjustment of 3.66% as shown in Table ES-1.

Table ES – 1
Summary of 2023 Rate Adjustment to 2022 Rates
Cost Component
2022
Target
Revenue
2023
Target
Revenue
$
Difference
% Adjustment
to 2022 Rates
Total Base Compensation $4,452,207 $4,768,384 $316,177 3.74% Performance (Inc.)./Dis. 2,122 (5,459) (7,581) (0.09%)
Pass Thru Costs 4,002,879 4,010,571 7,692 0.09%
Plus Disincentive Payable 2021 6,849 0 (6,849) (0.08%)
Total Target Revenue $8,464,058 $8,773,496 $309,439 3.66% In the review of Recology’s Total Target Revenue for the 2023 rate year, HDR concluded that the Total Target Revenue used the appropriate data and information for the time period and the calculations within the methodology were correct. As a result of our review, HDR concluded that based upon the current Agreement, the City’s maximum solid waste rates for 2022 should be 352
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City of Belmont – Review of 2023 Solid Waste Rates
increased by 3.66% to rate year 2023 proposed rates. Provided in this report is a more detailed discussion of each of the elements of the calculation of the 2023 maximum rate calculation and the basis for HDR’s summary conclusion.

Presented below in Table ES-2 are the present monthly residential rate and the proposed residential rates for 2023.

Table ES – 2
Summary of the Present and Proposed Residential Solid Waste Rates (Regularly Scheduled - $/Month)
Present Proposed
Monthly 2023 $/Month
Schedule Schedule Description Rate Rates Change
R20G Residential Waste - 20 Gallons $34.94 $36.22 $1.28 R32G Residential Waste - 32 Gallons $41.68 $43.21 $1.53 R64G Residential Waste - 64 Gallons $82.06 $85.06 $3.00 R96G Residential Waste - 96 Gallons $123.08 $127.59 $4.50 In addition to the above residential rates for regularly scheduled service, the City and Recology have a number of other rate schedules for regularly scheduled solid waste services. These include the following:
• Commercial Waste Carts (20 gallons to 96 gallons)
• Commercial Waste Bins (1 yard to 6 yards; 1 day to 7 days per week pickup) • Commercial Organics (1 yard to 6 yards; 1 day to 7 days per week pickup) • Commercial Organics Carts (20 gallons to 96 gallons; 1 day to 7 days per week pickup) • Commercial Waste 3 Yard Compactor
• Solid Waste Compactor (per yard)
Each of these commercial rate schedules were increased by the overall 3.66% rate increase. A more detailed discussion of these other regularly scheduled services can be found in Section 4 of the report and also within the Technical Appendices as Attachment L rate schedules.

Additional Services (Attachment Q) – Review of Recology’s Calculated Maximum
In addition to the regularly scheduled rates, there are also rates for “additional services”. The rates for additional services are contained in Attachment Q of the Agreement and are annually updated in accordance with the Agreement. Attachment Q is established in 11.05 of Article 11, Annual Adjustment of Maximum Rates for Additional Services.

The Maximum Rate set forth in Attachment Q is adjusted annually by multiplying the then effective April CPI-U General for the year in which rates are set and divided by the April CPI-U from the year prior to the year in which rates are set. For example, the April CPI-U-General is 324.878 for 2022 and the April CPI-U-General for 2021 is 309.419. Therefore, each Maximum 353
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Rate is multiplied by the April CPI-U-General for 2022 and divided by the April CPI-U-General for 2021. This resulted in an overall rate increase of 5.00% (324.878 / 309.419) for Attachment Q rates effective in 2023 for the additional services.

A more detailed discussion of these additional services can be found in Section 4 of the report and also within the Technical Appendices as Attachment Q rate schedules.

Summary Conclusions and Recommendations
Based on the limited review undertaken, it was the conclusion of HDR that the maximum rates, as calculated by Recology, were in conformance with the City’s current Agreement. In reaching this conclusion, HDR has relied upon the data and information as supplied by the City and Recology. Given that conclusion, HDR would recommend that the City revise the residential and commercial rates based on the proposed rates provided in Table ES-1. Finally, the additional services (Attachment Q), as calculated by Recology and as reviewed within this report, should also be adopted for 2023 based on the CPI increase of 5.00%.

City Council Review
On September 13, 2022, HDR will present to the City of Belmont City Council the proposed 3.66% rate adjustment for 2023 rates for the scheduled services, Schedule L, and a 5.00% rate adjustment for additional services, Schedule Q.

Summary of the Review of Solid Waste Rates
This completes the summary review and analysis for the City’s solid waste rates. A full and complete discussion of the review of Recology’s solid waste rates can be found in the following sections of this report.
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City of Belmont – Review of 2023 Solid Waste Rates

1.1 Introduction
The City of Belmont (City) is a member of the South Bayside Waste Management Authority (SBWMA). In 2018, the signed an Agreement with Recology of San Mateo County (Recology) for solid waste collection services, including the collection of recycling and organic materials.

Through the Agreement, the annual compensation for Recology’s collection and recycling services is contractually determined. At the same time, the Agreement calls for the City to establish and adopt their own solid waste rates, but not at a level which exceeds the Contractor’s “Maximum Rates for Regularly Scheduled or Unscheduled Services”. Ultimately, Recology bills the City’s customers for the solid waste services at the rates established by the City of Belmont City Council.

The 2018 Agreement is for a 15-year term, for rate years 2021 through 2035. This solid waste rate review represents the third year under the current Agreement. While the current Agreement is similar to the 2010 agreement, there are certain differences. Both franchise agreements contain specific language and exhibits related to the development of the maximum rates for a given year.

The general approach for rate adjustments (2022 – 2035) is based on changes in specific cost indices for the primary cost categories outlined by Recology for the base contractor’s compensation. For example, in 2023 the costs, will be adjusted by the change in the specific cost indices from 2021 to 2023. These cost indices include CPI-U, CPI-U-Motor Fuel, CPI-W, etc. The agreement has outlined each of the specific cost indices that will be used in escalating the base costs for future year rate adjustments. The total target revenues for rate year 2023 will be compared to the total target revenues in the prior year rate year 2022. This comparison will result in the rate multiplier to be used on 2022 rates to establish the proposed 2023 rates.

1.2 Limitations of HDR’s Review
It is important to understand that HDR has provided a limited review of Recology’s maximum rate calculations for the 2023 rate year. The data and information used by Recology to calculate the City’s maximum rates were reviewed by another outside firm. HDR did not provide a review of this basic input data as a part of this study. Therefore, HDR and the City have assumed that the data and information input into Recology’s rate calculations are reasonable and appropriate.

Having said that, HDR did a limited cross-check to verify the inputs into Recology’s model, from the database of previously reviewed basic input data and information.

Within HDR’s review, the three key items reviewed were the overall methodology, compliance to the agreed upon methodology, and verification of the data inputs. First, the overall methodology is generally well-laid out within Article 11 of the current Agreement. Given that, HDR reviewed Recology’s methodology for compliance with our understanding of the required methodology for the 2023 rate year. At the same time, HDR also reviewed the data inputs and information used within the methodology as applied to the 2022 rate year. While the data and information were previously reviewed, the selection and use of the appropriate costs and

1.0 Introduction and Overview of the Report
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adjustment factors must comply with the methodology. Finally, HDR confirmed/verified the calculations (formulas) used within the methodology as applied to the 2023 rate year were accurate. As a part of HDR’s review, these three aspects of Recology’s rate filing were reviewed and verified.

1.3 Organization of the Report
This report is organized in a manner that reflects the general approach used by HDR to review Recology’s maximum rates for “Regularly Scheduled” and “Additional Services”. The next section of this report provides a brief overview of the relevant portions of the Agreement. Section 3 then provides a discussion and overview of the technical review undertaken by HDR of the Recology rate calculations. From that review, HDR was then able to review and verify the proposed maximum rates for Regularly Scheduled and Additional Services. The proposed maximum rates are discussed and shown in Section 4. Finally, Section 5 provides a summary of HDR’s findings, conclusions, and recommendations from this study.
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2.1 Introduction
An important starting point for reviewing the City’s solid waste rates is to gain an understanding of the current Agreement which is an extension of the original 2010 franchise agreement. This section of the report is intended to provide a brief overview of the relevant portions of the City’s current Agreement with Recology to help the reader better understand the basis for this review of the rates.

The review and discussion contained herein is not intended to be comprehensive in nature, nor provide any legal interpretation or opinion regarding the relevant portions of this Agreement as it relates to this study.

2.2 Overview of the Agreement
As noted, the agreement was extended in 2018 for an additional 15-year term forrate years 2021 through 2035. This is the third rate year under the current, extended, Agreement. The Agreement is very similar to the 2010 franchise agreement but does contain some relevant changes to Article 11 which determines Recology’s compensation and the City’s solid waste rates.

Similar to the 2010 agreement, for 2021 and beyond, Recology’s annual compensation for collection and recycling services is outlined in the Agreement and contractually determined. The Agreement calls for the City to establish and adopt their own solid waste rates, but not at a level which exceeds the Contractor’s “Maximum Rates for
Regularly Scheduled Services” referred to as Attachment L and “Maximum Rates for Additional Services”, referred to as Attachment Q2. The Agreement between the parties
contains specific language and exhibits related to the
development of the maximum rates for a given year for
both Attachments L and Q.

The Agreement provides for an orderly process and
approach to establish rates for the City and compensation for Recology. The review being undertaken by the City and HDR is a part of that orderly process, and the City is performing its due diligence to verify and confirm that the maximum rates calculated by Recology are in accordance with the Agreement for rate year 2023.

More specific to the Agreement, Article 11 – “The Contractor’s Compensation, Pass-Through Costs and Rates” provides the analytical framework for determining the annual compensation for Recology’s collection and recycling services. This calculation of annual compensation sets the Contractor’s “Maximum Rates for Regularly Scheduled Services” known as Attachment L and “Additional Services” known as Attachment Q. Attachment L is established in 11.04 of Article 11, 2 Under the 2010 franchise agreement, Regularly Scheduled services were referred to as Attachment R and Additional Services was referred to as Schedule Q.

2.0 Overview of the Agreement
. . . and the City is performing
its due diligence to verify and
confirm that the maximum
rates calculated by Recology
are in accordance with the
Agreement for the 2023 rate
year.
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Annual Adjustment of Maximum Rates for Schedule Services. Attachment Q is established in

11.05 of Article 11, Annual Adjustment of Maximum Rates for Additional Services.

2.3 Regularly Scheduled Services (Attachment L)
As noted above, Article 11 of the Agreement provides the analytical framework or methodology for the determination of the maximum rates for the upcoming year. In very simple terms, the Agreement calls for Recology to annually take the existing maximum rate that is in effect and multiply each rate by an “adjustment multiplier”. The adjustment multiplier is essentially a “cost index” based on CPI value adjustments to arrive at Total Target Revenue for the rate year. The Total Target Revenue for the current year is divided by the prior year Total Target Revenue per

11.04.A. as follows:
“ . . . Beginning with the adjustment for Rate Year 2022, each Maximum Rate set forth in Attachment L shall be adjusted annually by multiplying the then-effective Maximum Rate by the Adjustment Multiplier. The Adjustment Multiplier used to calculate the Maximum Rates that will be effective in a given Rate Year (the “Adjustment Year”) shall be calculated by dividing Total Target Revenue for the Adjustment Year (calculated pursuant to Table 2 below) by Total Target Revenue for the Rate Year prior to the Adjustment Year (the “Current Year”).”3
However for only Rate Year 2022 the “prior” year will be the 2021 adjusted Total Target Revenue of $7,888,920 as follows in 11.04A.
“ . . . For purposes of determining Maximum Rates for Rate Year 2022, Total Target Revenue for Rate Year 2021 shall be the same as Total Contractor’s Compensation for that year (i.e. $7,888,920).”4

Going forward in rate year 2023 to 2035 the adjustment multiplier will be the current year Total Target Revenue divided by the prior year Total Target Revenue. In rate year 2023 the Total Target Revenue for 2023 rate year will be divided by the prior 2022 Total Target.

The franchise agreement provides the cost index for the various components to calculate Total Target Revenue. The Total Target Revenue isstated in total dollars. For example, the Total Target Revenue for 2022 was $8,464,058. Going forward, for each year the cost index is calculated by adding together the various component costs which are composed of the following cost elements:
• Direct Labor (Wages for CBA’s, Benefits for CBA’s, Payroll Taxes, Worker’s Compensation) • Direct Fuel Costs
• General Expenses Direct and Indirect
• General Expenses Depreciation
• Profit Calculation
• Interest
• Performance Incentives/Performance Disincentives
• Pass Through Costs
3 Franchise Agreement, Section 11.04(A), Adjustment Multiplier for Regularly Scheduled Services, p. 99. 4 Franchise Agreement, Section 11.04(A), Adjustment Multiplier for Regularly Scheduled Services, p. 99. 358
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o Disposal Costs (i) Projected Next Year, (ii) Actual Prior Year, (iii) less Prior Projected Year)
o Agency Payments
The general approach for future year rate adjustments (2023 – 2035) is based on changes in specific cost indices for the primary cost categories outlined by Recology for the base contractor’s compensation. For example, in 2023 the costs will be adjusted by the change in the specific cost indices from 2022 to 2023. These cost indices include CPI-U, CPI-U-Motor Fuel, CPI-W, etc. The current Agreement outlines each of the specific cost indices that will be used in escalating the base costs (adjusted 2021 Total Target Revenue) for future year rate adjustments. For rate year 2023, the 2023 Total Target Revenue is compared to the 2022 Total Target Revenue of $8,464,058. For rate year 2023, the specific cost indices will compare for the current year index to the 2020 index and the 2022 adjusted Total Target Revenue.

Finally, the disposal costs are calculated separately from base contractor’s compensation. The current franchise agreement uses a similar approach to establishing the annual adjustments to the disposal costs. Essentially, all increases or changes in disposal costs are passed through as direct rate adjustments to the customer.

2.4 Additional Services (Attachment Q)
The rates for additional services are addressed in the current franchise agreement and are annually updated in accordance with the Agreement. Rates for Additional Services are discussed and established in 11.05 of Article 11, Annual Adjustment of Maximum Rates for Additional Services.

11.05 – Annual Adjustment of Maximum Rates for Additional Services A. The Maximum Rates for Rate Year 2021 for the additional services described in Attachment Q shall be the charges for those services determined under the SBWMA-wide methodology, adjusted as necessary to pass through the Franchise Fee and any other Agency fees under this Agreement. Beginning with the adjustment for Rate Year 2022, each Maximum Rate set forth in Attachment Q shall be adjusted annually by multiplying the then-effective Maximum Rate by April CPI-U-General for the year in which the calculation is made and dividing the result by April CPI-U-General for the year prior to the year in which the calculation is made. For example, to calculate the Maximum Rates set forth in Attachment Q effective in 2025, each such Maximum Rate effective in 2024 shall be multiplied by CPI-U-General for April 2024 and divided by CPI-U-General for April 2023.

The adjustment to Schedule Q is based upon a cost-indexing approach and a CPI for general inflation is used. For example, assume the April 2025 CPI-U-General is 300.000 and the April 2024 CPI-U-General is 295.000. This would result in an adjustment to the Additional Services rates of

1.7%. (300.000 / 295.000 = 1.017 or 1.7%).
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2.5 Summary
This section of the report has provided a brief overview of the relevant portions of the current Agreement with Recology. While this overview of the Agreement has been necessarily abbreviated, it does provide a good understanding of the basic framework or methodology used to calculate the maximum rates for Regularly Scheduled Services and Additional Services. 360
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3.1 Introduction
As a part of the Agreement, Recology calculates the maximum rates for the up-coming calendar year. The calculated maximum rates are formula driven, and as noted in the prior section of the report, there is relatively clear language and numeric examples of the rate process. The purpose of this section of the report is to provide an overview of Recology’s rate filing to the City for the 2023 rate year, along with HDR’s technical review of that filing. Article 11.04 specifically outlines the establishment of maximum rates for 2023 and after for regularly scheduled services.

3.2 Overview of Recology’s 2023 Rate Application
On July 31, 2022, Recology provided to the City a letter and the detailed worksheets outlining their calculation of the maximum rates for rate year 2023. The rate application letter indicated a maximum increase adjustment of 3.66%. HDR reviewed that calculation and determined based upon the information provided that it appears to be in agreement with the current Agreement.

For 2023, the adjustment multiplier is based on CPI cost adjustment by component. HDR conducted a review of Recology’s calculations and determined, based on the information provided, that it appears to be in compliance with the Agreement. Provided below in Table 3-1 is an overview of Recology’s Total Target Revenue calculation for rate year 2023

3.0 Review of Recology’s Calculated Maximum
Rates for Regularly Scheduled Services
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Table 3 – 1
Overview of Recology’s Total Target Revenue Calculation Rate Year 2023 Cost Component
Adj. 2021
Target
Revenue
April 2020
CPI Index
April 2022
CPI Index
Change
2020 to 2023
2023
Target
Revenue
Direct Labor Related
Wages for CBA’a $1,310,584 290.304 322.0210 1.109 $1,453,771 Benefits for CBA’s 608,287 548.136 573.254 1.046 636,161 Payroll Taxes 109,005 N/A N/A 117,755
Workers Compensation 93,961 290.304 322.021 1.109 104,227 Direct Fuel Costs 169,992 209.994 414.03 1.972 335,161
General Expense Direct & Indirect 1,211,383 298.074 324.848 1.090 1,320,296 Depreciation 281,317 N/A N/A 281,317
Profit 397,271 N/A N/A 445,995
Interest 73,679 N/A N/A 73,679
Performance Inc./Disincentives 0 N/A N/A (5,459)
Base Contractor’s Compensation $4,255,479 $4,762,925
Agency Components 2,051,120 $2,281,102
Disposal Projected Cost (i) $1,745,620
Disposal Actual Prior Year Cost (ii) 1,772,859
Disposal Prior Projected Cost (iii) -1,789,017
Disposal Cost Component $1,732,664 $1,729,462
Total Target Revenue $8,039,263 $8,773,496
(i) The Contractor’s projected costs for April 1 of that calendar year through March 31 of the following year plus (ii) The Contractors’ actual costs April 1 of the year prior through March 31 of the calendar year minus (iii) The contractor’s previous projection.

As noted above, the City retained HDR to review the Recology calculations (Table 3-1) to confirm that the proper data appeared to be used within the analysis, and that the mathematical calculations were correct for the 2023 rate year. While Table 3-1 appears rather simple and straight-forward, the calculations are, in some cases, much more complex with other detailed worksheets behind them.

Provided below is a more detailed discussion of the analytical steps taken to review the Recology calculations and the results of our review.

3.3 Overview of General Approach Used to Review Costs
As noted in Section 2, an important starting point for reviewing Recology’s compensation is understanding the Agreement. HDR reviewed the documents, then independently reviewed the rate year 2023 maximum rate calculations. HDR developed spreadsheets to review and attempt to duplicate the Recology calculations for 2023. In this way, HDR could review the data sources 362
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 14 City of Belmont – Review of 2023 Solid Waste Rates
used and verify their appropriateness, while at the same time, verifying the formulas used within the calculations.

3.4 Summary Conclusions of HDR’s Review of the Maximum Rate Calculations
Based on HDR’s review of Recology’s 2023 rate application, HDR concluded that the costs contained in Table 3-1 used appropriate cost data and information for the time period and the calculations within the methodology were correct. As a result of our independent review HDR concluded that based upon the existing Agreement, the maximum rates should be calculated based on the increase in rates of 3.66%.

3.5 HDR’s Detailed Review of the Total Target Revenue Calculations As previously discussed, the focus of HDR’s review was on the calculations used to establish the total target revenue for rate year 2023 or the “Maximum Rates for Regularly Scheduled Services”.

Article 11 of the Agreement form the basis for the calculations. As shown in Table 3-1, there is one primary calculation component to the maximum rate calculation, the CPI value adjustment.

3.5.1 CPI Value Adjustment
The general approach for future year rate adjustments (2023 – 2035) is based on changes in specific cost indices for the primary cost categories outlined by Recology for the base contractor’s compensation. For example, in 2023 the 2021 adjusted base target revenue will be adjusted by the change in the specific cost indices from 2020 to 2022. These cost indices include CPI-U, CPIU-Motor Fuel, CPI-W, etc. The current Agreement outlines each of the specific cost indices that will be used in escalating the base adjusted target revenue for future year rate adjustments. For Rate Year 2023 and thereafter the specific cost indices will compare for the current year index to the 2020 index and the 2021 adjusted Total Target Revenue. In simplified terms, general operating costs are adjusted annually by the use of a CPI value. The CPI value index is segregated into nine main components. They are as follows:
• Direct Labor - The direct labor includes wages for CBA’s, benefits for CBA’s, payroll taxes, and worker’s compensation. Wages for CBA’s, benefits for CBA’s, and worker’s compensation for base year 2021 is multiplied by the difference between the 2020 base year CPI for that component and the current year (2021) CPI for that component. In very simplified terms, the agreement uses the wages for CBAs at the start of the agreement of 2021 and then simply adjusts wages for CBAs by a CPI amount based on 2020 CPI and the current year CPI. Payroll tax is a formula based on the wages times 8.1%. • Direct Fuel – The fuel for base year 2021 is multiplied by the difference between the 2020 average price per gallon and the average price per gallon of fuel for the twelve month period ending March 31 of the Calendar Year.
• General Expense Direct and Indirect – The general expense base for 2021 is multiplied by the difference between the 2020 base year Consumer Price Index and the current year Consumer Price Index.
• Depreciation Vehicles, Containers, Indirect – The vehicle deprecation remains fixed at $193,109 for rate year 2022-2026. Values for rate years 2027-2035 shall be determined as part of the SBWMA-wide rate application for rate year 2027. The container 363
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 15 City of Belmont – Review of 2023 Solid Waste Rates
depreciation remains fixed at $77,090 for rate years 2022-2035 unless additional containers are purchased. The indirect remains fixed at $7,409 for rate years 2022-2035. • Profit Calculation – The profit is calculated by taking the sum of direct labor, direct fuel, general expenses direct and indirect, and the depreciation vehicles, containers and indirect for the current rate year, divide by 0.905, and subtract from the result the sum of direct labor, direct fuel, general expenses direct and indirect, and the depreciation vehicles, containers and indirect for the current rate year components for the rate year.

This calculation represents application of the 90.5% operating ratio to Contractor’s calculated total annual cost of operations.
• Disposal Costs – (i) The Contractor’s projected costs for April 1 of that calendar year through March 31 of the following year plus (ii) the Contractors’ actual costs April 1 of the year prior through March 31 of the calendar year minus (iii) the contractor’s previous projection.
• Interest – The value remains fixed at $72,732 for rate years 2022-2035 unless additional vehicles or containers are purchased.
• Performance-Based – Is the sum of incentives and disincentives the year immediately preceding the Calendar Year of the Cost Index. The determination of incentives and disincentives is independently determined by another outside party. • Agency Payment – The anticipated amount of total Agency payments as detailed in Article 11 (direct labor, direct fuel, general expenses direct and indirect, depreciation, profit, interest, performance incentives & disincentives, and disposal costs, divided by (1 – 0.26) then multiplying the result by 0.26.

For each of the above components, HDR reviewed the source data and information used within Recology’s calculations. As a part of Recology’s packet of information, the source data used by Recology was attached to the application letter. While much of the cost data and information had previously been audited by another outside independent consultant, in those cases where other key assumptions to the analysis were needed (e.g., CPI index), HDR attempted to independently review them.

Based on the changes from the 2022 total target revenue to the 2023 total target revenue the costs increased by $309,439 or 3.66% overall ($8,773,496 - $8,464,058 = $309,439 or $309,439/$8,464,058 = 3.66%). The majority of the components are based on specific cost indexes and/or formulas as explained previously. Disposal costs are based on projections and actuals and are made of three components the (i) Contractor’s projected costs, (ii) the Contractors’ actual costs of the year prior, and the (iii) Contractor’s previous projection. Provided below in Table 3-2 is a summary of the changes in target revenue compared from 2022 to 2023. 364
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 16 City of Belmont – Review of 2023 Solid Waste Rates
Table 3 – 2
Summary of Changes in Total Target Revenue from 2022 to 2023 Cost Component
2022
Target
Revenue
2023
Target
Revenue
$
Difference
%
Difference
Base Contractor Compensation
Direct Labor Related $2,189,750 $2,311,915 $122,165 5.58% Direct Fuel Costs 234,012 335,161 101,149 43.22%
General Expense Direct & Indirect 1,257,489 1,320,315 62,826 5.00% Depreciation 281,317 281,317 0 0.00%
Profit 415,960 445,997 30,037 7.22%
Interest 73,679 73,679 0 0.00%
Total Base Compensation $4,452,207 $4,768,384 $316,177
Performance (Inc.)./Dis. 2,122 (5,459) (7,581) (357.26%) Total Pass Thru Costs
Disposal Projected Cost (i) $1,789,017 $1,745,620 (43,397) (2.43%) Disposal Actual Prior Year Cost (ii) 1,747,652 1,772,859 25,207 1.44% Disposal Prior Projected Cost (iii) (1,732,664) (1,789,017) (56,353) 3.25% Agency Payments $2,198,874 $2,281,109 82,235 3.74%
Total Pass Thru Costs $4,002,879 $4,010,571 $7,692
Plus Disincentive Payable 2021 6,849 0 (6,849) (100.0%) Total Target Revenue $8,464,058 $8,773,496 $309,439 3.66% In a more simplified or summarized manner, The rate adjustment multiplieris composed of three elements; the 2023 CPI cost adjustments, the 2022 Incentive/Disincentive adjustment, and the 2023 pass through costs which comprise both disposal and agency payment. Table 3-3 summarizes this adjustment by component.

Table 3 – 3
Summary of 2023 Rate Adjustment to 2022 Rates
Cost Component
2022
Target
Revenue
2023
Target
Revenue
$
Difference
% Adjustment
to 2022 Rates
Total Base Compensation $4,452,207 $4,768,384 $316,177 3.74% Performance (Inc.)./Dis. 2,122 (5,459) (7,581) (0.09%)
Pass Thru Costs 4,002,879 4,010,571 7,692 0.97%
Plus Disincentive Payable 2021 6,849 0 (6,849) (0.08%)
Total Target Revenue $8,464,058 $8,773,496 $309,439 3.66% 365
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 17 City of Belmont – Review of 2023 Solid Waste Rates

3.6 Conclusions Regarding the Calculation of the Maximum Rate Based on the review of the Recology rate calculation, HDR concluded that the calculation as provided by Recology appears appropriate and in keeping with the current Agreement. In reaching this conclusion, HDR reviewed and verified the data inputs into the calculation, while also confirming the overall methodology and calculations. Based upon our conclusions, the calculated Maximum Rate Index for 2023 is an increase of 3.66% in overall rates for regularly scheduled services.
366
Review of the Proposed 2023 Solid Waste Rates 18
City of Belmont – Review of 2023 Solid Waste Rates

4.1 Introduction
In the previous section of this report, the cost basis for the City’s 2023 solid waste rates was reviewed and provides the basis for determining the City’s maximum rates for rate year 2023.

This section of the report will review the maximum solid waste rates for Regularly Scheduled Services (Attachment L) and Additional Services (Attachment Q).

4.2 Residential Regularly Scheduled Service (Attachment L) From the review of the rate index multiplier, it was concluded that the analysis developed by Recology appears to comply with the City’s Agreement. The overall adjustment to revenues derived from rates for 2023 is a 3.66% increase in the existing rates. In developing the calculated maximum rates, Recology provided a schedule of the rates. HDR reviewed the calculated maximum rates to confirm that they use the appropriate multiplier. Presented below is a discussion of the present solid waste rates and the proposed 2023 rates for residential and commercial customers. Provided below in Table 4-1 are the proposed 2023 Residential rates for Schedule L (regularly scheduled services).

Table 4–1
Summary of the Present and Proposed Residential Solid Waste Rates (Regularly Scheduled - $/Month)
Present Proposed
Monthly 2023 $/Month
Schedule Schedule Description Rate Rates Change
R20G Residential Waste - 20 Gallons $34.94 $36.22 $1.28 R32G Residential Waste - 32 Gallons $41.68 $43.21 $1.53 R64G Residential Waste - 64 Gallons $82.06 $85.06 $3.00 R96G Residential Waste - 96 Gallons $123.08 $127.59 $4.50

4.3 Commercial Carts Regularly Scheduled Service (Attachment L) Some commercial waste customers have similar service to the residential customers in that they have cart sizes that range from 20 gallons to 96 gallons. However, a difference between the residential and commercial service is the number of pick-ups per week. A commercial customer may choose their level of service (number of pick-ups per week). Presented in Table 4-2 is a summary of the current commercial rates and the calculated maximum rate for 2023. The maximum calculated rate assumes a 3.66% increase from the present rates. Some minor rounding of the rates may occur for purposes of ease of administration.

4.0 Review of the Proposed 2023 Solid Waste
Rates
367
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City of Belmont – Review of 2023 Solid Waste Rates
Table 4 – 2
Summary of the Present and Calculated Max. Commercial Solid Waste Rates (By Gallon Cart Size; Regularly Scheduled - $/Month)
As can be seen, the rates have maintained the existing structure for commercial waste customers with carts.

4.4 Commercial Waste Bins Regularly Scheduled Service
Other commercial customers have larger bins which range in size from 1 yard to 6 yards. These commercial waste customers also have the option of different levels of service and can select the number of pick-ups per week. Presented in Table 4-3 is a summary of the current commercial waste bin rates and the calculated maximum rate for 2023. The maximum calculated rate assumes a 3.66% increase from the present rates. Some minor rounding of the rates may occur for purposes of ease of administration.

C20G Commercial Waste - 20 Gallon
Present 2021 Monthly Rate $44.58 $91.70 $136.53 $187.45 $237.16 $296.74 $361.48 Calculated Maximum 2023 Rate $46.21 $95.06 $141.53 $194.31 $245.84 $307.60 $374.71 $/Month Change $1.63 $3.36 $5.00 $6.86 $8.68 $10.86 $13.23 C32G Commercial Waste - 32 Gallon
Present 2021 Monthly Rate $49.50 $101.90 $151.68 $208.27 $263.49 $329.70 $401.63 Calculated Maximum 2023 Rate $51.31 $105.63 $157.23 $215.89 $273.13 $341.77 $416.33 $/Month Change $1.81 $3.73 $5.55 $7.62 $9.64 $12.07 $14.70 C64G Commercial Waste - 64 Gallon
Present 2021 Monthly Rate $95.72 $193.14 $293.04 $394.03 $500.86 $610.35 $714.51 Calculated Maximum 2023 Rate $99.22 $200.21 $303.77 $408.45 $519.19 $632.69 $740.66 $/Month Change $3.50 $7.07 $10.73 $14.42 $18.33 $22.34 $26.15 C96G Commercial Waste - 96 Gallon
Present 2021 Monthly Rate $138.35 $283.39 $430.05 $581.73 $735.46 $925.79 $1,080.07 Calculated Maximum 2023 Rate $143.41 $293.76 $445.79 $603.02 $762.38 $959.67 $1,119.60 $/Month Change $5.06 $10.37 $15.74 $21.29 $26.92 $33.88 $39.53 368
Review of the Proposed 2023 Solid Waste Rates 20
City of Belmont – Review of 2023 Solid Waste Rates
Table 4 – 3
Summary of the Present and Calculated Max. Commercial Solid Waste Rates (By Bin Size in Yards; Regularly Scheduled - $/Month)
The commercial waste rates for customers with bins have maintained the existing rate structure and rate relationships.

4.5 Commercial Organics Bins Regularly Scheduled Service The rate charged for commercial organics is tied to the commercial waste rate. Commercial organics rates are charged at 70% of the commercial waste rate, for a comparable size bin.

Similar to the commercial waste bin customers, commercial organics customers have bins which range in size from 1 yard to 6 yards. Similar to the commercial waste customer, the commercial organics customers also have the option of different levels of service and can select the number of pick-ups per week. Presented in Table 4-4 is a summary of the current commercial organics bin rates and the calculated maximum rate for 2023. The maximum calculated rate assumes a

3.66% increase from the present rates. Some rounding of the rates may occur for purposes of ease of administration.

C1YG Commercial Waste - 1 Yard
Present 2021 Monthly Rate $232.14 $472.63 $717.24 $964.70 $1,214.15 $1,515.32 $1,787.89 Calculated Maximum 2023 Rate $240.64 $489.93 $743.49 $1,000.01 $1,258.59 $1,570.78 $1,853.33 $/Month Change $8.50 $17.30 $26.25 $35.31 $44.44 $55.46 $65.44 C2YG Commercial Waste - 2 Yard
Present 2021 Monthly Rate $466.97 $941.60 $1,420.71 $1,903.31 $2,392.73 $2,824.75 $3,345.44 Calculated Maximum 2023 Rate $484.06 $976.06 $1,472.71 $1,972.97 $2,480.30 $2,928.14 $3,467.88 $/Month Change $17.09 $34.46 $52.00 $69.66 $87.57 $103.39 $122.44 C2YG1 Commercial Waste - 2 Yard
Present 2021 Monthly Rate $466.97 $941.60 $1,420.71 $1,903.31 $2,392.73 $2,824.75 $3,345.44 Calculated Maximum 2023 Rate $484.06 $976.06 $1,472.71 $1,972.97 $2,480.30 $2,928.14 $3,467.88 $/Month Change $17.09 $34.46 $52.00 $69.66 $87.57 $103.39 $122.44 C3YG Commercial Waste - 3 Yard
Present 2021 Monthly Rate $704.26 $1,417.02 $2,133.96 $2,853.04 $3,574.60 $4,339.41 $5,109.55 Calculated Maximum 2023 Rate $730.04 $1,468.88 $2,212.06 $2,957.46 $3,705.43 $4,498.23 $5,296.56 $/Month Change $25.78 $51.86 $78.10 $104.42 $130.83 $158.82 $187.01 C4YG Commercial Waste - 4 Yard
Present 2021 Monthly Rate $961.38 $1,939.38 $2,917.40 $3,906.54 $4,899.86 $5,934.38 $6,990.56 Calculated Maximum 2023 Rate $996.57 $2,010.36 $3,024.18 $4,049.52 $5,079.19 $6,151.58 $7,246.41 $/Month Change $35.19 $70.98 $106.78 $142.98 $179.33 $217.20 $255.85 C6YG Commercial Waste - 6 Yard
Present 2021 Monthly Rate $1,478.54 $2,998.70 $4,507.55 $6,003.56 $7,520.90 $9,092.10 $10,648.98 Calculated Maximum 2023 Rate $1,532.65 $3,108.45 $4,672.53 $6,223.29 $7,796.16 $9,424.87 $11,038.73 $/Month Change $54.11 $109.75 $164.98 $219.73 $275.26 $332.77 $389.75 369
Review of the Proposed 2023 Solid Waste Rates 21
City of Belmont – Review of 2023 Solid Waste Rates
Table 4 –4
Summary of the Present and Calculated Maximum Commercial Organics Solid Waste Rates (By Bin Size in Yards; Regularly Scheduled - $/Month)

4.6 Commercial Organics Carts Regularly Scheduled Service Commercial customers can also have the smaller gallon-sized carts for organic waste. Presented in Table 4-5 is a summary of the current commercial organics cart rates and the calculated maximum rate for 2023. The maximum calculated rate assumes a 3.66% increase from the present rates. Some minor rounding of the rates may occur for purposes of ease of administration.

C1YO Commercial Organics - 1 Yard
Present 2021 Monthly Rate $162.51 $330.83 $502.05 $675.29 $849.91 $1,060.74 $1,251.53 Calculated Maximum 2023 Rate $168.46 $342.94 $520.43 $700.01 $881.02 $1,099.56 $1,297.34 $/Month Change $5.95 $12.11 $18.38 $24.72 $31.11 $38.82 $45.81 C2YO Commercial Organics - 2 Yard
Present 2021 Monthly Rate $326.89 $659.11 $994.50 $1,332.31 $1,674.88 $1,977.32 $2,341.81 Calculated Maximum 2023 Rate $338.85 $683.23 $1,030.90 $1,381.07 $1,736.18 $2,049.69 $2,427.52 $/Month Change $11.96 $24.12 $36.40 $48.76 $61.30 $72.37 $85.71 C3YO Commercial Organics - 3 Yard
Present 2021 Monthly Rate $492.98 $991.94 $1,493.78 $1,997.13 $2,502.21 $3,037.59 $3,576.68 Calculated Maximum 2023 Rate $511.02 $1,028.25 $1,548.45 $2,070.22 $2,593.79 $3,148.77 $3,707.59 $/Month Change $18.04 $36.31 $54.67 $73.09 $91.58 $111.18 $130.91 C4YO Commercial Organics - 4 Yard
Present 2021 Monthly Rate $672.97 $1,357.56 $2,042.18 $2,734.58 $3,429.89 $4,154.10 $4,893.39 Calculated Maximum 2023 Rate $697.60 $1,407.25 $2,116.92 $2,834.67 $3,555.42 $4,306.14 $5,072.49 $/Month Change $24.63 $49.69 $74.74 $100.09 $125.53 $152.04 $179.10 C6YO Commercial Organics - 6 Yard
Present 2021 Monthly Rate $1,034.98 $2,099.09 $3,155.27 $4,202.50 $5,264.63 $6,364.46 $7,454.28 Calculated Maximum 2023 Rate $1,072.86 $2,175.92 $3,270.75 $4,356.31 $5,457.32 $6,597.40 $7,727.11 $/Month Change $37.88 $76.83 $115.48 $153.81 $192.69 $232.94 $272.83 370
Review of the Proposed 2023 Solid Waste Rates 22
City of Belmont – Review of 2023 Solid Waste Rates
Table 4 – 5
Summary of the Present and Calculated Maximum Commercial Organics Solid Waste Rates (By Gallon Cart Size; Regularly Scheduled - $/Month) The commercial organics cart rates have maintained the existing rate structure and rate relationships.

4.7 Other Miscellaneous Solid Waste Rates
The solid waste rates also include other solid waste rates for multi-family customers. The maximum calculated rate assumes a 3.66% increase from the present rates. Some minor rounding of the rates may occur for purposes of ease of administration. These rates are shown below in Table 4-6
Table 4 – 6
Summary of the Present and Calculated Maximum Other Miscellaneous Solid Waste Rates (Regularly Scheduled - $/Month)
C32O Commercial Organics - 32 Gallon
Present 2021 Monthly Rate $34.67 $71.33 $106.17 $145.80 $184.45 $230.81 $281.16 Calculated Maximum 2023 Rate $35.94 $73.94 $110.06 $151.14 $191.20 $239.26 $291.45 $/Month Change $1.27 $2.61 $3.89 $5.34 $6.75 $8.45 $10.29 C64O Commercial Organics - 64 Gallon
Present 2021 Monthly Rate $67.02 $135.20 $205.12 $275.83 $350.61 $427.21 $500.15 Calculated Maximum 2023 Rate $69.47 $140.15 $212.63 $285.93 $363.44 $442.85 $518.46 $/Month Change $2.45 $4.95 $7.51 $10.10 $12.83 $15.64 $18.31 C96O Commercial Organics - 96 Gallon
Present 2021 Monthly Rate $96.85 $198.36 $301.03 $407.20 $514.82 $648.04 $756.05 Calculated Maximum 2023 Rate $100.39 $205.62 $312.05 $422.10 $533.66 $671.76 $783.72 $/Month Change $3.54 $7.26 $11.02 $14.90 $18.84 $23.72 $27.67 C3CG Commercial Waste 3 Yard Compactor
Present 2021 Monthly Rate $1,691.12
Calculated Maximum 2023 Rate $1,753.01
$/Month Change $61.89
Solid Waste Compactor Rate Per Yard
Present 2021 Monthly Rate $130.11
Calculated Maximum 2023 Rate $134.87
$/Month Change $4.76
371
Review of the Proposed 2023 Solid Waste Rates 23
City of Belmont – Review of 2023 Solid Waste Rates

4.8 Rates for Additional Services (Attachment Q)
Recology also provides a number of services that are not considered “regularly scheduled” services and these particular services are not included as a part of the Attachment L rates discussed above. These services are considered “Additional Services” (i.e., Schedule Q) and as discussed in Section 2, they are adjusted using a cost index for general inflation.

The Maximum Rate set forth in Attachment Q is adjusted annually by multiplying the then effective April CPI-U General for the year in which rates are set and divided by the April CPI-U from the year prior to the year in which rates are set. For example, the April CPI-U-General is 324.878 for 2022 and the April CPI-U-General for 2021 is 309.419. Therefore, each Maximum Rate is multiplied by the April CPI-U-General for 2022 and divided by the April CPI-U-General for 2021. This resulted in an overall rate increase of 5.00% (324.878 / 309.419) for Attachment Q rates effective in 2023 for the additional services. Details of the Additional Service rates (Schedule Q) can be found in Technical Appendix B.

4.9 Summary
HDR reviewed the Recology rate calculation and concluded that the resulting maximum solid waste rates for both regularly scheduled services (Attachment L) and additional services (Attachment Q) for rate year 2023 were calculated in a manner which reflected the intent of the Agreement.
372
Summary of the Solid Waste Rate Findings, Conclusions and Recommendations 24 City of Belmont – Review of 2023 Solid Waste Rates

5.1 Introduction
This report has reviewed the calculated Maximum Rate as developed by Recology. HDR used a systematic process to review the base-year costs, along with the resulting maximum rates for regularly scheduled service.

5.2 Summary Findings, Conclusions and Recommendations
HDR has confirmed that the rate adjustment application and the accompanying maximum rate schedules submitted by Recology meet the requirements of the Agreement. On September 13, 2022, HDR will present the proposed 2023 rates for Schedule L of 3.66% and unscheduled services, Schedule Q, of 5.00% to the City Council.

5.3 Looking Ahead – Future Rate Adjustment to 2024
The 2024 rate adjustment will include CPI value adjustment components for the current year (2023 for rate year 2024) compared to the 2020 CPI value components and the adjusted 2021 target revenue. The multiplier will be based on the 2024 Total Target Revenue compared to the 2023 Total Target Revenue of $8,773,496.

5.4 Summary
This completes the review conducted by HDR for the City of Belmont on the proposed 2023 Solid Waste rates. This report has met the City’s requirement to conduct a due diligence on the proposed compensation to Recology and the resulting regularly scheduled and additional services solid waste rates.

5.0 Summary of Solid Waste Rate Findings,
Conclusions and Recommendations
373
The following table specifies Maximum Allowable Rates for Regularly Scheduled Services. These Maximum Rates shall be adjusted annually in accordance with Article 11. The following Attachment L rates are the proposed 2023 rates.

Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
Technical Appendix A – Attachment L
Regularly Scheduled Service
374
Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
375
Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
376
Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
377
The following table specifies Maximum Allowable Rates for Additional Services. These Maximum Rates shall be adjusted annually in accordance with Article 11. The following Attachment Q rates are the proposed 2023 rates.

Technical Appendix B – Attachment Q
Additional Services
378
Schedule Q
Additional Services (Continued)
379
Schedule Q
Additional Services (Continued)
380
Schedule Q
Additional Services (Continued)
No. Additional Service Category Reference Agency-Approved Maximum Rate Description
16 Additional Compost Material
Delivery Section 5.11
A - $161.22 per
delivery
B - $322.47 per
delivery
A - "one-way" only delivery
by Contractor where
Contractor delivers to and
unloads compost at an
Agency-approved location
B- "Round-trip" delivery by
Contractor where Contractor
delivers compost in a Drop
Box to an Agency-approved
location and returns at a
later time or date to pick up
the Drop Box and any
remaining compost (charge
includes the delivery of and
later pick-up of the Drop
Box)
17 Community Drop-Off Events Section 5.13 $26,313.47 per event or day
Per event or day targeting
5,000 households. Does not
include disposal or public
education expenses.

No. Additional Service Category Reference Agency-Approved Maximum Rate Description
18 Collection for AgencySponsored and Non-Agency
sponsored Community Events
Section 5.08
A - $3,869.62
B - $6,449.37
C - $9,674.07
A - One day event with a
projected 2,500 or fewer
attendees
B - One (1) or two (2) day
events with a projected
2,501 to 7,500 attendees per
day C - One (1) or two
(2) day events with a
projected 7,501 to 10,000
attendees per day.
381
Schedule Q
Additional Services (Continued)
382