Belmont City Council
November 14, 2023

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2024 - Staff Report

STAFF REPORT
Meeting Date: November 14, 2023
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: Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2024 Agenda Action: Resolution
Recommendation
Adopt a resolution revising the maximum rates that may be charged by Recology of San Mateo County for solid waste, recyclable materials, and organic materials collection services effective January 1, 2024.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
Recology of San Mateo County (Recology) provides solid waste, recyclable materials, and organic materials collection services in the City of Belmont under a 15-year franchise agreement between Recology and the City ending in 2035. Recology sets its own rates for collection services under the franchise agreement, but Recology may not charge Belmont residential and commercial customers more than the maximum rates approved by the City Council. This rate setting process is particular to Belmont.

Belmont is a member of the South Bayside Waste Management Authority (Rethinkwaste). The Authority assists member agencies with various matters related to the collection and disposal of wastes and recyclables, including the selection of a collection services provider (Recology) serving all members and the development of a model franchise agreement. Unlike the compensation provisions in the other members’ franchise agreements with Recology, Belmont’s agreement is based on a maximum rate formula that limits what Recology may charge and is not subject to a revenue reconciliation process at the end of each rate year.

Public Participation
In order to promote public participation in setting the maximum rates, Section 11.09 of the franchise agreement contemplates that the City will follow the notice and protest hearing procedures of Proposition 218 as set forth in California Constitution Article XIIID, Section 6(a), and Government Code Section 53755. Those procedures require mailing a notice of a public hearing on the setting of maximum rates to solid waste customers (Attachment D) at least forty-five days before the hearing. Belmont customers and property owners may submit written protests against the proposed rates and 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 rate changes are presented by owners of a majority of the affected parcels, the City Council will not impose the new maximum rates.
258

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2024 - Staff Report On September 12, 2023, the City Council adopted Resolution No. 2023-068 stating its intent to revise the maximum rates for 2024 and set the public hearing for November 14, 2023. Notices of the hearing were mailed to solid waste customers as provided for in the resolution.

Analysis
The maximum rates that Recology may charge for scheduled and additional services are determined by a formula described in Article 11 of the franchise agreement. In simple terms, the formula takes the existing maximum rates and multiplies each rate by an ‘adjustment multiplier’. The adjustment multiplier is essentially a cost index with three principal adjustment components: changes in the consumer price index or “CPI” for certain cost elements that make up the Base Contractor Compensation, changes in passthrough disposal costs and agency payments, and performance incentive/disincentive adjustments.

The sum of all the adjustments is the Total Target Revenue for that year. Each year, Recology submits information and calculations for the adjustments and proposes changes to the maximum rates based on the information and calculations. City staff and the City’s solid waste consultant, HDR Engineering Inc. (HDR), then analyze Recology’s submissions for accuracy and consistency with the franchise agreement.

Recology is proposing total contractor compensation of $9,740,247 for 2024. The percentage change between the 2024 total target revenue of $9,740,247 and the 2023 target revenue of $8,773,496 results in the adjustment multiplier rate of 11.02%, which is consistent with the methodology of the Agreement.

The adjustment multiplier rate of 11.02% is the proposed 2024 rate increase to the residential and commercial carts and bins and it accounts for CPI cost increases such as labor costs, fuel, general expenses, SB 1383 program implementation, depreciation, interests, incentives and disincentives, direct costs components, and agency payments from April 2020 to April 2023. The proposed 11.02% rate increase is considerably higher than last year and is mostly attributed to a new contract being in place to operate the Shoreway Environmental Center (handling the disposal of solid waste, organics, and recyclables), and an increase in the tipping fees of 25%, which makes up most of the disposal cost component charged as a pass-through cost by RethinkWaste.

HDR has prepared the attached report (Attachment C), which provides the bases of City’s review of the rate adjustment application and the accompanying maximum rate schedules submitted by Recology conforming to the requirements of the franchise agreement.

Residential Rates
Recology charges a flat monthly rate per cart size. Residential service is comprised of four different cart sizes which range from 20 gallons to 96 gallons. Table 1 is a summary of the present and calculated residential solid waste rates for the for the different cart sizes. The price per cart size is expected to increase by 11.02% for all cart sizes.

Table 1
Summary of the Present and Calculated Maximum Residential Solid Waste Rates (Regularly Scheduled - $/Month)
259

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2024 - Staff Report

RESIDENTIAL CARTS
Present Proposed
Monthly Maximum $/Month
Schedule Schedule Description 2023 Rate 2024 Rate Change R20G Residential Waste - 20 Gallons $36.22 $40.21 $3.99 R32G Residential Waste - 32 Gallons $43.21 $47.97 $4.76 R64G Residential Waste - 64 Gallons $85.06 $94.43 $9.37 R96G Residential Waste - 96 Gallons $127.59 $141.65 $14.06 Commercial Rates
Commercial customers have similar service to residential customers, but they have the option to adjust the number of pickups per week. In 2024, commercial rate schedules are expected to increase by 11.02%.

To see a complete listing of all commercial rates please see the attached Resolution. Table 2 below is a summary of the calculated maximum commercial solid waste rates for 2024 by cart size. Some minor rounding of the rates may occur for purposes of ease of administration.

Table 2
Summary of Calculated Maximum Commercial Solid Waste Rates (By Gallon Cart Size; Regularly Scheduled - $/Month)
260

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2024 - Staff Report 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 3 is a summary of the calculated maximum commercial solid waste rates for 2024 for the larger bin sizes. It is estimated that the rates (Schedule L) will increase by 11.02% for all bin sizes.

Table 3
Summary of Calculated Maximum Commercial Solid Waste
Rates (By Bin Size in Yards; Regularly Scheduled - $/Month) 261

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2024 - Staff Report Additional Services
Recology also provides several “additional 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 CPI rate increase of 4.19% is indicated. However, this rate increase does not apply to the vast majority of Belmont residents.

Alternatives

1. Take no action.

2. Direct staff to adjust rates differently while meeting the revenue requirements in accordance with the franchise agreement.

Attachments
A. Resolution
B. Recology 2024 Rate Application
C. HDR Final Report
D. Proposition 218 Public Notice
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

If approved, the maximum rate schedules listed under Exhibit A of the Resolution will become effective January 1, 2024 and will cover the solid waste program's revenue requirements. 262

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2024 - Staff Report Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda Other*
* 45-day notice mailed to customers as required under Proposition 218 263

RESOLUTION NO. 2023 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT REVISING

THE MAXIMUM RATES FOR SOLID WASTE, RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION SERVICES EFFECTIVE JANUARY 1, 2024 WHEREAS, Recology San Mateo County (Recology) provides solid waste, recyclable materials, and organic materials collection services in the City of Belmont under a franchise agreement with the City; and,
WHEREAS, the franchise agreement 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 2024; and,
WHEREAS, on September 12, 2023, the City Council adopted a resolution stating the City’s intention to adjust the maximum rates that may be charged for solid waste, recyclable materials, and organic materials collection services effective January 1, 2024, and setting the date of a public hearing for November 14, 2023.

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

SECTION 1. The City Council approves the maximum rates proposed by Recology as set forth in Exhibit A to this resolution.

SECTION 2. The City Council finds that:
(a) The City followed the procedures in California Constitution Article XIIID, Section 6 in approving the maximum rates.
(b) The rates approved by this Resolution do not exceed the amounts permissible under Article XIIID if that article applied, and the solid waste charge is not a tax. (c) A majority protest, as defined Article XIIID, Section 6(b) does not exist with respect to the revision of the schedule of solid waste maximum rates.
(d) Although the City Council, in the interest of public participation, has chosen as a matter of policy to follow the procedures set forth in Article XIIID, nothing in this Resolution is interpreted as an admission by the City that the provisions of Article XIIID apply to the actions taken herein. (e) The City Council would take the action set forth in Section 1 of this Resolution regardless of whether Article XIIID applies to the action.
* * *
264

ADOPTED November 14, 2023 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
265
266
267
SBWMA- SBWMA SBWMA- Adjusted
Adjusted Approved Adjusted April 2020 April 2023 2024
2021 SB 1383 2021 Plus CPI CPI Rate Year
Cost Description Basis for Adjustment Values Costs SB 1383 Index Index Compensation Direct Labor Related
Wages for CBA's CPI-W: CWURS49BSA0 1,310,584 1,310,584 290.304 333.478 1,505,494 Benefits for CBA's CPI-W-Medical: CUURS49BSAM 608,287 608,287 548.136 583.268 647,274 Payroll Taxes Effective Rate: 8.1% 109,005 109,005 na na 121,945 Workers Compensation CPI-W: CWURS49BSA0 93,961 93,961 290.304 333.478 107,935 Direct Fuel Costs CPI-U-Motor Fuel: CUURS49BSETB 169,992 169,992 209.994 354.844 287,249 General Expenses Direct CPI-U: CUURS49BSA0 191,163 191,163 298.074 338.496 217,087 General Expenses Indirect CPI-U: CUURS49BSA0 1,020,220 1,020,220 298.074 338.496 1,158,573 SBWMA Approved SB 1383 Costs CPI-U: CUURS49BSA0 - 18,124 18,124 na na 18,124 General Expenses Depreciation Fixed 281,317 281,317 na na 281,317 Profit Calculation Operating Ratio of 90.5% 397,271 397,271 na na 456,105 Interest Fixed 73,679 73,679 na na 73,679
Performance Incentives Based on Annual Report - - na na - Performance Disincentives Based on Annual Report - - na na (6,147) Base Contractor's Compensation 4,255,478 18,124 4,273,602 4,868,635 Disposal Cost Component (i) Projected Next Rate Year 1,732,663 2,241,715 Disposal Cost Component (ii) Actual Prior Year 1,843,054 Disposal Cost Component (iii) Less Projected Prior Year (1,745,620) Agency Payments 2,051,120 2,532,464
Total Contractor Compensation 8,039,261 8,057,385 9,740,247 Note: The SB 1383 cost of $18,124 is added to base costs starting in year 2024 and will be subject to CPI-U adjustment beginning in year rate 2025. 2024
Total Contractor Compensation 9,740,247
Cap Carry Forward 11.11 -
Total Target Revenue 9,740,247
2023 Target Revenue 8,773,496
Adjustment Multiplier 11.02%
5% Cap Calculation 11.11
Adjusted Contractor's Compensation 2024 4,874,782
Adjusted Contractor's Compensation 2023 4,768,384
difference 106,398
5 % of Adjusted Contractor's Compensation 2023 238,419
Potential Cap Carry Forward 0
Recology San Mateo County
City of Belmont
Refuse Rate Index Calculation
268
Recology San Mateo County
City of Belmont
Actual Disposal Calculation (Apr 2022 - Mar 2023)
Rate Year 2024

BELMONT CITY VEHICLES
Solid Bulky Solid
Water
Heater
Waste Green/Org Food Items Waste Green/Org Dirt C&D Concrete Appliances APR 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 MAY 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 JUN 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 JUL 559.58 362.18 44.35 2.06 49.06 4.88 0.00 0.00 11.70 0.00 AUG 629.29 393.05 49.62 2.38 54.53 15.49 34.48 0.00 10.24 0.00 SEP 592.42 357.31 49.56 1.65 47.69 5.09 28.06 0.00 6.31 0.00 OCT 574.86 335.25 47.27 1.86 45.21 0.00 8.92 0.00 24.71 0.00 NOV 605.37 380.73 46.22 2.73 47.41 2.06 72.76 0.00 9.96 0.00 DEC 638.20 424.66 47.12 4.08 43.58 5.31 0.00 0.00 0.00 1.00 subtotal Apr - Dec 2022 5409.38 3364.82 420.25 22.03 395.45 47.11 149.32 0.00 71.81 1.00 JAN 640.04 480.08 55.63 0.00 59.43 2.04 44.15 0.00 0.00 0.00 FEB 564.60 304.69 48.75 2.93 51.65 6.51 20.85 0.00 0.00 0.00 MAR 660.11 460.01 52.82 2.18 55.53 28.35 39.83 0.00 0.00 0.00 subtotal Jan - Mar 2023 1864.75 1244.78 157.20 5.11 166.61 36.90 104.83 0.00 0.00 0.00 SBWMA Total 7274.13 4609.60 577.45 27.14 562.06 84.01 254.15 0.00 71.81 1.00 Rate Apr 2022 - Dec 2022 $130.00 $143.00 $144.00 $130.00 $130.00 $143.00 $115.00 $130.00 $115.00 $18.00 Rate Jan 2023 - Mar 2023 $139.00 $150.00 $150.00 $139.00 $139.00 $150.00 $121.00 $130.00 $121.00 $18.00 Per Item Cost $962,419.65 $667,886.26 $84,096.00 $3,574.19 $74,567.29 $12,271.73 $29,856.23 $0.00 $8,258.15 $18.00 Total Disposal $1,843,053.50
269
Recology San Mateo County
City of Belmont
Projected Disposal Calculation (Apr 2023 - Mar 2024)
Rate Year 2024

BELMONT CITY VEHICLES
Solid Bulky Solid Each
Waste Green/Org Food Items Waste Green/Org Dirt C&D Concrete Refrigerator APR (Actual) 573.85 410.71 43.55 3.22 39.37 16.81 8.44 0.00 0.00 1.00 MAY (Actual) 662.89 473.47 48.71 2.55 36.58 2.00 15.84 0.00 42.36 0.00 JUN (Actual) 640.01 424.99 57.36 2.16 30.99 2.67 146.21 0.00 21.85 0.00 JUL 573.85 410.71 43.55 3.22 39.37 16.81 8.44 0.00 0.00 1.00 AUG 662.89 473.47 48.71 2.55 36.58 2.00 15.84 0.00 42.36 0.00 SEP 640.01 424.99 57.36 2.16 30.99 2.67 146.21 0.00 21.85 0.00 OCT 573.85 410.71 43.55 3.22 39.37 16.81 8.44 0.00 0.00 1.00 NOV 662.89 473.47 48.71 2.55 36.58 2.00 15.84 0.00 42.36 0.00 DEC 640.01 424.99 57.36 2.16 30.99 2.67 146.21 0.00 21.85 0.00 subtotal Apr - Dec 5,630.25 3,927.51 448.86 23.79 320.82 64.44 511.47 0.00 192.63 3.00 JAN 573.85 410.71 43.55 3.22 39.37 16.81 8.44 0.00 0.00 1.00 FEB 662.89 473.47 48.71 2.55 36.58 2.00 15.84 0.00 42.36 0.00 MAR 640.01 424.99 57.36 2.16 30.99 2.67 146.21 0.00 21.85 0.00 subtotal Jan - Mar 1,876.75 1,309.17 149.62 7.93 106.94 21.48 170.49 0.00 64.21 1.00 SBWMA Total 7,507.00 5,236.68 598.48 31.72 427.76 85.92 681.96 0.00 256.84 4.00 Rates Apr 2023 - Dec 2023 $139.00 $150.00 $150.00 $139.00 $139.00 $150.00 $121.00 $130.00 $121.00 $53.00 Rates Jan 2024 - Mar 2024 $173.75 $187.50 $187.50 $173.75 $173.75 $187.50 $153.75 $177.50 $153.75 $53.00 Per Item Cost $ 1,108,690.06 $ 834,595.88 $ 95,382.75 $ 4,684.65 $ 63,174.81 $ 13,693.50 $ 88,100.71 $ - $ 33,180.52 $ 212.00 Total Disposal $ 2,241,714.87
270
Recology San Mateo County
Incentives and Disincentives
Year 2022
Member Agency
SFD and
Commercial
Missed P/U
Events
Average
Speed of
Answer
90 Second
Max Hold
Time
Diversion
Maximum
Incentives and
Disincentives1
Belmont $1,580 $7,005 $4,125 ($4,030) $6,147
Burlingame $2,039 $15,421 $9,080 ($8,872) $12,093
East Palo Alto $714 $11,516 $6,781 ($6,625) $8,221
Foster City $1,121 $9,845 $5,797 ($5,664) $7,540
Hillsborough $408 $2,647 $1,559 ($1,523) $2,134
Menlo Park $867 $14,332 $8,439 ($8,245) $10,210
North Fair Oaks $153 $5,535 $3,259 ($3,184) $3,762
Redwood City $1,835 $32,737 $19,276 ($18,834) $23,179
San Carlos $1,988 $11,787 $6,940 ($6,781) $9,673
San Mateo $5,760 $37,120 $21,857 ($21,356) $29,961
County Franchised Area $510 $3,785 $2,229 ($2,177) $2,977 WBSD $51 $1,652 $972 ($950) $1,128
Total $17,025 $153,379 $90,314 ($88,242) $117,025
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 2022
Performance Incentives and Disincentives
271
Adjustment Multiplier 11.02%

RESIDENTIAL RATES
R20G RES WASTE 20G 40.21
R32G RES WASTE 32 GAL 47.97
R64G RES WASTE 64 GAL 94.43
R96G RES WASTE 96 GAL 141.65
COMMERCIAL/MULTI FAMILY RATES Times Per Week
1 2 3 4 5 6 7
C1YG COMML WASTE 1 YD 267.16 543.92 825.42 1,110.21 1,397.29 1,743.88 2,057.57 C1YO COMML ORGANICS 1 YD 187.02 380.73 577.78 777.15 978.11 1,220.73 1,440.31 C15CG COMML WASTE 1.5 YD COMPACTOR 973.28 1,946.58 2,919.86 3,893.11 4,866.40 5,839.66 6,812.94 C15CO COMML ORGANICS 1.5 YD COMPACTOR 681.30 1,362.58 2,043.88 2,725.17 3,406.47 4,087.76 4,769.05 C20G COMML WASTE 20 GALLON 51.30 105.54 157.13 215.72 272.93 341.50 416.00 C2YG1 COMML WASTE 2 YD 537.40 1,083.62 1,635.00 2,190.39 2,753.63 3,250.82 3,850.04 C2YO COMML ORGANICS 2 YD 376.19 758.52 1,144.51 1,533.26 1,927.51 2,275.57 2,695.03 C32G COMML WASTE 32 GALLON 56.96 117.27 174.56 239.68 303.23 379.43 462.21 C32O COMML ORGANICS 32 GAL 39.90 82.09 122.19 167.80 212.27 265.63 323.57 C3CG COMML WASTE 3 YD COMPACTOR 1,946.19 0.00 0.00 0.00 0.00 0.00 0.00 C3YG COMML WASTE 3 YD 810.49 1,630.75 2,455.83 3,283.37 4,113.77 4,993.93 5,880.24 C3YO COMML ORGANICS 3 YD 567.33 1,141.56 1,719.09 2,298.36 2,879.63 3,495.76 4,116.17 C4YG1 COMML WASTE 4 YD 1,106.39 2,231.90 3,357.44 4,495.78 5,638.92 6,829.48 8,044.96 C4YO COMML ORGANICS 4 YD 774.48 1,562.33 2,350.20 3,147.05 3,947.23 4,780.68 5,631.48 C64G COMML WASTE 64 GALLON 110.15 222.27 337.25 453.46 576.40 702.41 822.28 C64O COMML ORGANICS 64 GAL 77.13 155.59 236.06 317.44 403.49 491.65 575.59 C6YG1 COMML WASTE 6 YD 1,701.55 3,451.00 5,187.44 6,909.10 8,655.30 10,463.49 12,255.20 C6YO COMML ORGANICS 6 YD 1,191.09 2,415.71 3,631.19 4,836.38 6,058.72 7,324.43 8,578.64 C96G COMML WASTE 96 GALLON 159.21 326.13 494.92 669.47 846.39 1,065.43 1,242.98 C96O COMML ORGANICS 96 GAL 111.45 228.28 346.44 468.62 592.47 745.79 870.09 SOLID WASTE COMPACTOR RATE PER YARD 149.73
Rate Year 2024
Recology San Mateo County
City of Belmont
Attachment L
272
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 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 316.463 322.021 328.137 325.932 329.331 326.465 323.900 320.408 327.391 2023 331.875 333.478 335.725 332.718
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 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 567.774 573.254 583.038 591.731 587.405 580.306 571.613 588.998 2023 583.268 586.550 586.600
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
Medical care
San Francisco-Oakland-Hayward, CA
All items
1982-84=100
2013 to 2023
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
1982-84=100
2013 to 2023
273
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 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 340.187 343.538 408.338 414.030 435.497 464.377 428.878 391.441 401.663 435.974 383.334 325.704 397.747 400.995 394.499 2023 323.764 340.659 354.292 354.844 349.579 350.034 345.529 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 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 320.195 324.878 330.539 328.871 332.062 331.222 327.060 323.408 330.711 2023 337.173 338.496 340.056 337.689
2013 to 2023
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
San Francisco-Oakland-Hayward, CA
All items
1982-84=100
2013 to 2023
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
274
Recology San Mateo County
Rate Year 2024 Compensation
Summary
397,553
RY 2023 Total General &
Administrative Costs RY 2024
for MFD & Commercial Allocation % SB 1383
Costs
Belmont 179,802 4.56% 18,124
Burlingame 478,026 12.12% 48,183
East Palo Alto 236,610 6.00% 23,849
Foster City 216,130 5.48% 21,786
Hillsborough 5,771 0.15% 580
Menlo Park 477,191 12.10% 48,096
Redwood City 764,515 19.38% 77,058
San Carlos 394,702 10.01% 39,783
San Mateo 973,054 24.67% 98,076
N. Fair Oaks 140,001 3.55% 14,113
West Bay Sanitary District 19,361 0.49% 1,952
County Franchised Area 59,061 1.50% 5,951
Totals 3,944,224 100.00% 397,553
Note: RY 2024 cost are added to base costs.
275

CONTRACTOR'S TOTAL COST PROJECTIONS
2023 2024 2025
Wages for CBAs - - -
Benefits for CBAs - - -
Payroll Taxes - - -
Workers Compensation Insurance - - -
Total Direct Labor Related-Costs - - -
Direct Fuel Costs - - -
Other Direct Costs - - -
Depreciation
- Collection Vehicles - - -
- Containers - - -
- - -
Allocated Indirect Costs
General and Administrative 95,797 397,553 411,988
Operations - - -
Vehicle Maintenance - - -
Container Maintenance - - -
Total Allocated Indirect Costs 95,797 397,553 411,988
Total Allocated Indirect Depreciation Costs - - -
Annual Implementation Cost Amortization - - -
Total Annual Cost of Operations 95,797 397,553 411,988
Profit 10,056 41,732 43,247
Operating Ratio 90.5% 90.5% 90.5%
Total Operating Costs 105,853 439,285 455,236
Contractor Pass-Through Costs
Interest Expense - - -
Interest Expense on Implementation Cost - - -
Contract Changes to Specific Agencies - - -
Total Contractor Pass-Through Costs - - -
BASE CONTRACTOR'S COMPENSATION 105,853 439,285 455,236
Other Adjustments
Incentive / Disincentives - - -
Total Other Adjustments - - -
TOTAL CONTRACTOR'S COMPENSATION 105,853 439,285 455,236 Prior Year's Surplus/Shortfall to/from Recology
Revenue Reconciliation (Surplus)/Shortfall - - -
Interest on (Surplus)/Shortfall - - -
Sub-Total - - -
TOTAL BALANCE TO CONTRACTOR 105,853 439,285 455,236
Annual Cost of Operations
Direct Labor-Related Costs
Total Depreciation
276
Recology San Mateo County
SB1383 Cost Projections
Payroll Calculations
Description Units/Yr BU# Acct# Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 M-F Workdays /Mo. 22 20 23 20 23 22 21 23 21 22 22 21
Holidays Worked (Union) 1.17 1.17 0.17 0.17 1.17 0.17 1.17 0.17 1.17 1.17 1.17 0.17 Holidays Taken (Union) 1.00 - - - - - - - - - 1.00 1.00 Holidays Taken (Non Union) 2.00 1.00 - - 1.00 - 1.00 - 1.00 - 2.00 1.00 Union H&W $/Mo $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 $ 2,349.90 Union RSP $/Mo $ 831.91 $ 831.91 $ 831.91 $ 831.91 $ 831.91 $ 831.91 $ 831.91 $ 831.91 $ 831.91 $ 831.91 $ 831.91 $ 831.91 Non-Union H&W $/Mo $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 $ 1,561.16 Union Pension $/Hr (Admin) $ 4.60 $ 4.60 $ 4.60 $ 4.60 $ 4.60 $ 4.60 $ 4.60 $ 4.60 $ 4.60 $ 4.65 $ 4.80 $ 4.80 G&A Union Admin Labor (Waste Zero Reporting):

Additional Headcount - - - - - - - - - 1.00 1.00 1.00
Hours Per Employee Per Day - - - - - - - - - 8.00 8.00 8.00 Hourly Rate $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 34.66 $ 34.66 $ 34.66 Regular 2,080 7300810 6030 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,100.16 $ 6,100.16 $ 5,822.88 Overtime - 7300810 6040 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Holiday Worked 72 7300810 6060 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 485.24 $ 485.24 $ 69.32 Holiday Taken 24 7300810 6061 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 415.92 $ 415.92 Sick Cashout - 7300810 6050 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Vacation Cashout - 7300810 6070 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Other - 7300810 6080 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Payroll Expense: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,585.40 $ 7,001.32 $ 6,308.12 Payroll Taxes @ 8.0% 7300810 6130 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 526.83 $ 560.11 $ 504.65 Union Pension /Mo. 7300810 6150 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 818.68 $ 844.80 $ 806.40 Non Union 401K @ 7300810 6170 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Health & Welfare /Mo. 7300810 6181 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,181.81 $ 3,181.81 $ 3,181.81 Workers Comp @ 7.5% 7300810 6270 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 493.91 $ 525.10 $ 473.11 Fringe Benefits: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,021.23 $ 5,111.82 $ 4,965.97 Total G&A Union Admin Payroll & Related: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 11,606.63 $ 12,113.14 $ 11,274.09 G&A Non-Union Admin Labor (Waste Zero Reps):

Additional Headcount - - - - - - - - - 2.00 2.00 2.00
Hours Per Employee Per Day - - - - - - - - - 8.00 8.00 8.00 Hourly Rate $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 36.06 $ 36.06 $ 36.06 Regular 2,080 7300810 6030 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 12,692.31 $12,692.31 $12,115.38 Overtime - 7300810 6040 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Holiday Worked - 7300810 6060 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Holiday Taken - 7300810 6061 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Sick Cashout - 7300810 6050 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Vacation Cashout - 7300810 6070 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Other- Bonus - 7300810 6080 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,269.23 $ 1,269.23 $ 1,211.54 Payroll Expense: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,961.54 $ 13,961.54 $ 13,326.92 Payroll Taxes @ 8.0% 7300810 6130 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,116.92 $ 1,116.92 $ 1,066.15 Union Pension /Mo. 7300810 6150 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Non Union 401K @ 3.0% 7300810 6170 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 418.85 $ 418.85 $ 399.81 Health & Welfare /Mo. 7300810 6181 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,122.33 $ 3,122.33 $ 3,122.33 Mileage 30/Day/$0.655 7300810 7870 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 864.60 $ 864.60 $ 825.30 Workers Comp @ 7.5% 7300810 6270 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,047.12 $ 1,047.12 $ 999.52 Fringe Benefits: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,569.82 $ 6,569.82 $ 6,413.11 Total G&A Non-Union Admin Payroll & Related: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 20,531.36 $ 20,531.36 $ 19,740.03 Grand-Total Payroll Expense: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 20,546.94 $ 20,962.86 $ 19,635.04 Grand-Total Fringe Benefits: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 11,591.05 $ 11,681.64 $ 11,379.08 Grand-Total Payroll & Related: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 32,137.99 $ 32,644.50 $ 31,014.12

Recology San Mateo County
SB1383 Cost Projections
Payroll Calculations
Description Units/Yr BU# Acct#
M-F Workdays /Mo.

Holidays Worked (Union)
Holidays Taken (Union)
Holidays Taken (Non Union)
Union H&W $/Mo
Union RSP $/Mo
Non-Union H&W $/Mo
Union Pension $/Hr (Admin)
G&A Union Admin Labor (Waste Zero Reporting):

Additional Headcount
Hours Per Employee Per Day
Hourly Rate
Regular 2,080 7300810 6030
Overtime - 7300810 6040
Holiday Worked 72 7300810 6060
Holiday Taken 24 7300810 6061
Sick Cashout - 7300810 6050
Vacation Cashout - 7300810 6070
Other - 7300810 6080
Payroll Expense:

Payroll Taxes @ 8.0% 7300810 6130
Union Pension /Mo. 7300810 6150
Non Union 401K @ 7300810 6170
Health & Welfare /Mo. 7300810 6181
Workers Comp @ 7.5% 7300810 6270
Fringe Benefits:

Total G&A Union Admin Payroll & Related:

G&A Non-Union Admin Labor (Waste Zero Reps):

Additional Headcount
Hours Per Employee Per Day
Hourly Rate
Regular 2,080 7300810 6030
Overtime - 7300810 6040
Holiday Worked - 7300810 6060
Holiday Taken - 7300810 6061
Sick Cashout - 7300810 6050
Vacation Cashout - 7300810 6070
Other- Bonus - 7300810 6080
Payroll Expense:

Payroll Taxes @ 8.0% 7300810 6130
Union Pension /Mo. 7300810 6150
Non Union 401K @ 3.0% 7300810 6170
Health & Welfare /Mo. 7300810 6181
Mileage 30/Day/$0.655 7300810 7870
Workers Comp @ 7.5% 7300810 6270
Fringe Benefits:

Total G&A Non-Union Admin Payroll & Related:

Grand-Total Payroll Expense:

Grand-Total Fringe Benefits:

Grand-Total Payroll & Related:
2023 Totals 2024 Totals 2025 Totals
260 262 261

9.00 9.00 9.00

3.00 3.00 3.00

9.00 9.00 9.48
$ 18,023.20 $ 75,903.52 $ 78,731.99
$ - $ - $ -
$ 1,039.80 $ 3,910.58 $ 4,072.35
$ 831.84 $ 1,305.96 $ 1,357.44
$ - $ - $ -
$ - $ - $ -
$ - $ - $ -
$ 19,894.84 $ 81,120.06 $ 84,161.78
$ 1,591.59 $ 6,489.59 $ 6,732.94
$ 2,469.88 $ 10,158.67 $ 10,642.27
$ - $ - $ -
$ 9,545.43 $ 39,010.08 $ 39,985.32
$ 1,492.12 $ 6,084.00 $ 6,312.13
$ 15,099.02 $ 61,742.34 $ 63,672.66
$ 34,993.86 $ 142,862.40 $ 147,834.44
$ 37,500.00$157,955.79 $ 164,433.76
$ - $ - $ -
$ - $ - $ -
$ - $ - $ -
$ - $ - $ -
$ - $ - $ -
$ 3,750.00 $ 15,795.58 $ 16,443.38
$ 41,250.00 $ 173,751.37 $ 180,877.14
$ 3,299.99 $ 13,900.10 $ 14,470.20
$ - $ - $ -
$ 1,237.51 $ 5,212.53 $ 5,426.31
$ 9,366.99 $ 38,498.28 $ 39,557.04
$ 2,554.50 $ 10,296.60 $ 10,257.30
$ 3,093.76 $ 13,031.36 $ 13,565.78
$ 19,552.75 $ 80,938.87 $ 83,276.63
$ 60,802.75 $ 254,690.24 $ 264,153.77
$ 61,144.84 $ 254,871.43 $ 265,038.92
$ 34,651.77 $ 142,681.21 $ 146,949.29
$ 95,796.61 $ 397,552.64 $ 411,988.21

278

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. For Rate Year 2024, the current effective Maximum Rates are multiplied by the April 2023 CPI-U-General value of 338.496 and divided by the April 2022 CPI-U-General value of 324.878.

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.
279

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
$20.16 for SFD
$20.16 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
$1.32 per
Recycling Cart
$4.01 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
$109.61 Per Bulky Item Collection event
(in addition to the events
provided at no charge to
Customer pursuant to Section

5.12)
280

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 – $11.42 per
usage
B – $12.76 per
usage
Monthly cost:

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

8.02.B
$22.85 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 $10.74
minimum
Per bag
13 Container Cleaning
Service
Section

8.05.D
A – $67.20
B – $114.24
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
281

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 – $87.36
B – $100.80
C – $114.24
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 $1,612.72 Per event
16 Additional Compost
Material Delivery
Section 5.11 A – $167.98 per
delivery
B – $335.99 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 $27,416.46 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 – $4,031.82
B – $6,719.71
C – $10,079.58
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
282

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 $24.17 $38.58 $77.21 $115.79
50 < Distance <= 100 feet $28.23 $42.64 $81.23 $119.84
100 < Distance <= 150 feet $32.24 $46.66 $85.24 $123.86 150 < Distance <= 200 feet $36.29 $50.70 $89.28 $127.91 200 < Distance <= 250 feet $40.31 $54.72 $93.33 $131.94 250 < Distance <= 300 feet $44.35 $58.75 $97.36 $135.95 300 < Distance <= 350 feet $48.39 $62.78 $101.40 $139.98 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. 283
Draft Report
Review of the 2024 Solid Waste Rates
City of Belmont
September 2023
284
929 108th Ave NE, Suite 1300
Bellevue, WA 98004
September 8, 2023
Mr. Peter Brown
Public Works Director
City of Belmont
One Twin Pines Lane Suite 385
Belmont, California 94002
Subject: Review of the 2024 Solid Waste Rates Final 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 2024, based on their July 31st rate year 2024 application letter. The franchise agreement calls for the City to adopt 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
285
Table of Contents i
City of Belmont – Review of 2024 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 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 Table of Contents
286
Table of Contents ii
City of Belmont – Review of 2024 Solid Waste Rates

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

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

4.9 City Council Review ........................................................................................... 23

4.10 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 287
Executive Summary 1
City of Belmont – Review of 2024 Solid Waste Rates
Introduction
The City of Belmont (City) is a member of the South Bayside Waste Management Authority (SBWMA). On August 28, 2018, the City 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 (i.e., 7.01.A.5, 11.01.A, 11.06), the annual compensation for Recology’s collection and recycling services is contractually determined. At the same time, the Agreement calls for the City to adopt 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 2024.

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 2024 rate year. This study discusses the review undertaken by HDR for the 2024 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.
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).

Executive Summary
288
Executive Summary 2
City of Belmont – Review of 2024 Solid Waste Rates
Within HDR’s review, four key items have been reviewed and verified. These included:
• A review of Recology’s methodology for compliance with our understanding of the required methodology specific for the 2024 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 2024 as required in the current Agreement • A review of the data inputs and methodology used to adjust additional services (Schedule Q) for the 2024 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 2024 rate year based on the current Agreement Overview of the Agreement
The 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.
289
Executive Summary 3
City of Belmont – Review of 2024 Solid Waste Rates
Regularly Scheduled Service (Attachment L) – Review of Recology’s Calculated Maximum
On July 31, 2023, Recology provided to the City a letter outlining their calculation of the rates for rate year 2024. The City retained HDR Engineering, Inc. (HDR) to provide the rate review of the proposed 2024 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 2024.

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 2024 Base Contractor’s Compensation based on CPI cost adjustments, the 2023 Performance Incentive/Disincentive adjustment, and the 2024 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 2024, these elements are a total rate index adjustment of 11.02% as shown in Table ES – 1.

Table ES – 1
Summary of 2024 Rate Adjustment to 2023 Rates
Cost Component
2023
Target
Revenue
2024
Target
Revenue
$
Difference
% Adjustment
to 2023 Rates
Total Base Compensation $4,768,384 $4,874,782 $106,398 2.23% Performance (Inc.) / Dis. (5,459) ($6,147) (688) 12.60% Pass Thru Costs 4,010,571 4,871,613 861,041 21.47%
Plus Disincentive Payable 2022 0 0 0 0.00%
Total Target Revenue $8,773,496 $9,740,247 $966,751 11.02% In the review of Recology’s Total Target Revenue for the 2024 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 2023 should be 290
Executive Summary 4
City of Belmont – Review of 2024 Solid Waste Rates
increased by 11.02% for rate year 2024 proposed rates. Provided in this report is a more detailed discussion of each of the elements of the calculation of the 2024 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 2024.

Table ES – 2
Summary of the Present and Proposed Residential Solid Waste Rates (Regularly Scheduled - $/Month)
Present Proposed
Monthly 2024 $/Month
Schedule Schedule Description Rate Rates Change
R20G Residential Waste - 20 Gallons $36.22 $40.21 $3.99 R32G Residential Waste - 32 Gallons 43.21 47.97 4.76
R64G Residential Waste - 64 Gallons 85.06 94.43 9.37
R96G Residential Waste - 96 Gallons 127.59 141.65 14.06 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 11.02% 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 338.496 for 2023 and the April CPI-U-General for 2022 is 324.878. Therefore, each Maximum 291
Executive Summary 5
City of Belmont – Review of 2024 Solid Waste Rates
Rate is multiplied by the April CPI-U-General for 2023 and divided by the April CPI-U-General for 2022. This resulted in an overall rate increase of 4.19% (338.496 / 324.878) for Attachment Q rates effective in 2024 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 2024 based on the CPI increase of 4.19%.

City Council Review
The results of the study will be presented to the City of Belmont City Council on September 12, 2023. This reflected the proposed 11.02% rate adjustment for 2024 rates for the scheduled services, Schedule L, and a 4.19% rate adjustment for additional services, Schedule Q. If accepted by the City Council, the proposed rates will be presented at a public hearing on November 14, 2023.

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.
292
Introduction and Overview of the Report 6
City of Belmont – Review of 2024 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 (i.e., 7.01.A.5, 11.01.A, 11.06), the annual compensation for Recology’s collection and recycling services is contractually determined. At the same time, the Agreement calls for the City to adopt 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 2024 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 2024 will be compared to the total target revenues in the prior year rate year 2023. This comparison will result in the rate multiplier to be applied to the 2023 rates to establish the proposed 2024 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 2024 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 review. 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 2024 rate year. At the same time, HDR also reviewed the data inputs and information used within the methodology as applied to the 2023 rate year. While the data and information were previously reviewed, the selection and use of the appropriate costs and 1 Introduction and Overview of the Report
293
Introduction and Overview of the Report 7
City of Belmont – Review of 2024 Solid Waste Rates
adjustment factors must comply with the methodology. Finally, HDR confirmed/verified the calculations (formulas) used within the methodology as applied to the 2024 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.
294
Overview of the Agreement 8
City of Belmont – Review of 2024 Solid Waste Rates

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. 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 the 2024 rate year.

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, 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 Under the 2010 franchise agreement, Regularly Scheduled services were referred to as Attachment R and Additional Services was referred to as Schedule Q.
2 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 2024 rate
year.
295
Overview of the Agreement 9
City of Belmont – Review of 2024 Solid Waste Rates

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 the 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 2024 the Total Target Revenue for 2024 rate year will be divided by the prior 2023 Total Target Revenue.

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 2023 is $8,773,496. 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
 Disposal Costs (i) Projected Next Year, (ii) Actual Prior Year, (iii) less Prior Projected Year)
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. 296
Overview of the Agreement 10
City of Belmont – Review of 2024 Solid Waste Rates
 Agency Payments
The general approach for future year rate adjustments 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 2024 the costs will be adjusted by the change in the specific cost indices from 2023 to 2024. 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 2024, the 2024 Total Target Revenue of $9,740,248 is compared to the 2023 Total Target Revenue of $8,773,496.

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%).

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. 297
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 11 City of Belmont – Review of 2024 Solid Waste Rates

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 2024 rate year, along with HDR’s technical review of that filing. Article 11.04 specifically outlines the establishment of maximum rates for 2024 and after for regularly scheduled services.

3.2 Overview of Recology’s 2023 Rate Application
On July 31, 2023, Recology provided to the City a letter and the detailed worksheets outlining their calculation of the maximum rates for rate year 2024. The rate application letter indicated a maximum increase adjustment of 11.02%. HDR reviewed that calculation and determined based upon the information provided that it appears to agree with the current Agreement.

For 2024, 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 2024. 3 Review of Recology’s Calculated Maximum
Rates for Regularly Scheduled Services
298
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 12 City of Belmont – Review of 2024 Solid Waste Rates
Table 3 – 1
Overview of Recology’s Total Target Revenue Calculation Rate Year 2024 Cost Component
Adj. 2021
Target
Revenue
April
2020 CPI
Index
April 2023
CPI Index
Change
2020
to 2023
2024
Target
Revenue
Direct Labor Related
Wages for CBA’a $1,310,584 290.304 333.478 1.149 $1,505,494 Benefits for CBA’s 608,287 548.136 583.268 1.064 647,274 Payroll Taxes 109,005 N/A N/A 121,945
Workers Compensation 93,961 290.304 333.478 1.149 107,935 Direct Fuel Costs 169,992 209.994 354.844 1.690 287,249 General Expense Direct & Indirect 1,211,383 298.074 338.496 1.136 1,375,659 SB 1383 (2024) 18,124
Depreciation 281,317 N/A N/A 281,317
Profit 397,271 N/A N/A 456,105
Interest 73,679 N/A N/A 73,679
Performance Inc./Disincentives 0 N/A N/A (6,147)
Base Contractor’s Compensation $4,255,479 $4,868,635
Agency Components $2,532,464
Disposal Projected Cost (i) 2,241,715
Disposal Actual Prior Year Cost (ii) 1,843,054
Disposal Prior Projected Cost (iii) (1,745,620)
Disposal Cost Component $4,871,613
Total Target Revenue $9,740,247
(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 2024 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 2024 maximum rate calculations. HDR developed spreadsheets to review and attempt to duplicate the Recology calculations for 2024. In this way, HDR could review the data sources 299
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 13 City of Belmont – Review of 2024 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 2024 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 11.02%.

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 2024 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 2024, the 2021 adjusted base target revenue will be adjusted by the change in the specific cost indices from 2020 to 2023. 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 2024, 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 (2023) 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 wage’s times 14.9%. • 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 $196,818 for rate year 2022-2026. Values for rate years 2027-2035 shall be determined 300
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 14 City of Belmont – Review of 2024 Solid Waste Rates
as part of the SBWMA-wide rate application for rate year 2027. The container 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 $73,679 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 2023 Total Target Revenue to the 2024 Total Target Revenue the costs increased by $966,752 or 11.02% overall ($9,740,247 - $8,773,496 = $966,751 or $966,751 / $8,773,496 = 11.02%). 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 2023 to 2024. 301
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 15 City of Belmont – Review of 2024 Solid Waste Rates
Table 3 – 2
Summary of Changes in Total Target Revenue from 2023 to 2024 Cost Component
2023
Target
Revenue
2024
Target
Revenue
$
Difference
%
Difference
Base Contractor Compensation
Direct Labor Related $2,311,915 $2,382,648 $70,734 3.06% Direct Fuel Costs 335,161 287,249 (47,912) -14.30%
General Expense Direct & Indirect 1,320,315 1,393,783 73,468 5.56% Depreciation 281,317 281,317 0 0.00%
Profit 445,997 456,105 10,108 2.27%
Interest 73,679 73,679 0 0.00%
Total Base Compensation $4,768,384 $4,874,782 $106,398 2.23% Performance (Inc.) / Dis. (5,459) (6,147) (688) 12.60%
Total Pass Thru Costs
Disposal Projected Cost (i) $1,745,620 $2,241,715 $496,095 28.42% Disposal Actual Prior Year Cost (ii) 1,772,859 1,843,054 70,195 3.96% Disposal Prior Projected Cost (iii) (1,789,017) (1,745,620) 43,397 -2.43% Agency Payments 2,281,109 2,535,464 251,355 11.02%
Total Pass Thru Costs $4,010,571 $4,871,613 $861,042 21.47% Plus Disincentive Payable 2021 0 0 0 0.00%
Total Target Revenue $8,773,496 $9,740,247 $966,751 11.02% In a more simplified or summarized manner, The rate adjustment multiplieris composed of three elements; the 2024 CPI cost adjustments, the 2023 Incentive/Disincentive adjustment, and the 2024 pass through costs which comprise both disposal and agency payment. Table 3 - 3 summarizes this adjustment by component.

Table 3 – 3
Summary of 2024 Rate Adjustment to 2023 Rates
Cost Component
2023
Target
Revenue
2024
Target
Revenue
$
Difference
% Adjustment
to 2023 Rates
Total Base Compensation $4,768,384 $4,874,782 $106,398 2.23% Performance (Inc.)./Dis. (5,459) ($6,147) (688) 12.60%
Pass Thru Costs 4,010,571 4,871,613 861,041 21.47%
Plus Disincentive Payable 2022 0 0 0 0.00%
Total Target Revenue $8,773,496 $9,740,247 $966,751 11.02% 302
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 16 City of Belmont – Review of 2024 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 2024 is an increase of 11.02% in overall rates for regularly scheduled services.
303
Review of the Proposed 2024 Solid Waste Rates 17
City of Belmont – Review of 2024 Solid Waste Rates

4.1 Introduction
In the previous section of this report, the cost basis for the City’s 2024 solid waste rates was reviewed and provides the basis for determining the City’s maximum rates for rate year 2024.

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 2024 is a 11.02% 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 2024 rates for residential and commercial customers. Provided below in Table 4 – 1 are the proposed 2024 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 2024 $/Month
Schedule Schedule Description Rate Rates Change
R20G Residential Waste - 20 Gallons $36.22 $40.21 $3.99 R32G Residential Waste - 32 Gallons 43.21 47.97 4.76
R64G Residential Waste - 64 Gallons 85.06 94.43 9.37
R96G Residential Waste - 96 Gallons 127.59 141.65 14.06

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 2024. The maximum calculated rate assumes a 11.02% increase from the present rates. Some minor rounding of the rates may occur for purposes of ease of administration. 4 Review of the Proposed 2024 Solid Waste
Rates
304
Review of the Proposed 2024 Solid Waste Rates 18
City of Belmont – Review of 2024 Solid Waste Rates
Table 4 – 2
Summary of the Present and Calculated Max. Commercial Solid Waste Rates (By Gallon Cart Size; Regularly Scheduled - $/Month)
Collection – Times Per Week
Schedule 1 2 3 4 5 6 7
C20G Commercial Waste – 20 Gallon
Present 2023 Monthly Rate $46.21 $95.06 $141.53 $194.31 $245.84 $307.60 $374.71 Calculated Maximum 2024 Rate $51.30 $105.54 $157.13 $215.72 $272.93 $341.50 $416.00 $/Month Change $5.09 $10.48 $15.60 $21.41 $27.09 $33.90 $41.29 C32G Commercial Waste – 32 Gallon
Present 2023 Monthly Rate $51.31 $105.63 $157.23 $215.89 $273.13 $341.77 $416.33 Calculated Maximum 2024 Rate $56.96 $117.27 $174.56 $239.68 $303.23 $379.43 $462.21 $/Month Change $5.65 $11.64 $17.33 $23.79 $30.10 $37.66 $45.88 C64G Commercial Waste – 64 Gallon
Present 2023 Monthly Rate $99.22 $200.21 $303.77 $408.45 $519.19 $632.69 $740.66 Calculated Maximum 2024 Rate $110.15 $222.27 $337.25 $453.46 $576.40 $702.41 $822.28 $/Month Change $10.93 $22.06 $33.48 $45.01 $57.21 $69.72 $81.62 C96G Commercial Waste – 96 Gallon
Present 2023 Monthly Rate $143.41 $293.76 $445.79 $603.02 $762.38 $959.67 $1,119.60 Calculated Maximum 2024 Rate $159.21 $326.13 $494.92 $669.47 $846.39 $1,065.43 $1,242.98 $/Month Change $15.80 $32.37 $49.13 $66.45 $84.01 $105.76 $123.38 305
Review of the Proposed 2024 Solid Waste Rates 19
City of Belmont – Review of 2024 Solid Waste Rates
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 2024. The maximum calculated rate assumes a 11.02% increase from the present rates. Some minor rounding of the rates may occur for purposes of ease of administration.
306
Review of the Proposed 2024 Solid Waste Rates 20
City of Belmont – Review of 2024 Solid Waste Rates
Table 4 – 3
Summary of the Present and Calculated Max. Commercial Solid Waste Rates (By Yard Cart Size; Regularly Scheduled - $/Month)
Collection – Times Per Week
Schedule 1 2 3 4 5 6 7
C1YG Commercial Waste - 1 Yard
Present 2023 Monthly Rate $240.64 $489.93 $743.49 $1,000.01 $1,258.59 $1,570.78 $1,853.33 Calculated Maximum 2024 Rate $267.16 $543.92 $825.42 $1,110.21 $1,397.29 $1,743.88 $2,057.57 $/Month Change $26.52 $53.99 $81.93 $110.20 $138.70 $173.10 $204.24 C2YG Commercial Waste - 2 Yard
Present 2023 Monthly Rate $484.06 $976.06 $1,472.71 $1,972.97 $2,480.30 $2,928.14 $3,467.88 Calculated Maximum 2024 Rate $537.40 $1,083.62 $1,635.00 $2,190.39 $2,753.63 $3,250.82 $3,850.04 $/Month Change $53.34 $107.56 $162.29 $217.42 $273.33 $322.68 $382.16 C2YG1 Commercial Waste - 2 Yard
Present 2023 Monthly Rate $484.06 $976.06 $1,472.71 $1,972.97 $2,480.30 $2,928.14 $3,467.88 Calculated Maximum 2024 Rate $537.40 $1,083.62 $1,635.00 $2,190.39 $2,753.63 $3,250.82 $3,850.04 $/Month Change $53.34 $107.56 $162.29 $217.42 $273.33 $322.68 $382.16 C3YG Commercial Waste - 3 Yard
Present 2023 Monthly Rate $730.04 $1,468.88 $2,212.06 $2,957.46 $3,705.43 $4,498.23 $5,296.56 Calculated Maximum 2024 Rate $810.49 $1,630.75 $2,455.83 $3,283.37 $4,113.77 $4,993.93 $5,880.24 $/Month Change $80.45 $161.87 $243.77 $325.91 $408.34 $495.70 $583.68 C4YG Commercial Waste - 4 Yard
Present 2023 Monthly Rate $996.57 $2,010.36 $3,024.18 $4,049.52 $5,079.19 $6,151.58 $7,246.41 Calculated Maximum 2024 Rate $1,106.39 $2,231.90 $3,357.44 $4,495.78 $5,638.92 $6,829.48 $8,044.96 $/Month Change $109.82 $221.54 $333.26 $446.26 $559.73 $677.90 $798.55 C6YG Commercial Waste - 6 Yard
Present 2023 Monthly Rate $1,532.65 $3,108.45 $4,672.53 $6,223.29 $7,796.16 $9,424.87 $11,038.73 Calculated Maximum 2024 Rate $1,701.55 $3,451.00 $5,187.44 $6,909.10 $8,655.30 $10,463.49 $12,255.20 $/Month Change $168.90 $342.55 $514.91 $685.81 $859.14 $1,038.62 $1,216.47 307
Review of the Proposed 2024 Solid Waste Rates 21
City of Belmont – Review of 2024 Solid Waste Rates
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 pickups per week. Presented in Table 4 – 4 is a summary of the current commercial organics bin rates and the calculated maximum rate for 2024. The maximum calculated rate assumes a 11.02% increase from the present rates. Some rounding of the rates may occur for purposes of ease of administration.
308
Review of the Proposed 2024 Solid Waste Rates 22
City of Belmont – Review of 2024 Solid Waste Rates
Table 4 – 4
Summary of the Present and Calculated Maximum Commercial Organics (By Bin Size in Yards; Regularly Scheduled - $/Month)
Collection – Times Per Week
Schedule 1 2 3 4 5 6 7
C1YO Commercial Waste - 1 Yard
Present 2023 Monthly Rate $168.46 $342.94 $520.43 $700.01 $881.02 $1,099.56 $1,297.34 Calculated Maximum 2024 Rate $187.02 $380.73 $577.78 $777.15 $978.11 $1,220.73 $1,440.31 $/Month Change $18.56 $37.79 $57.35 $77.14 $97.09 $121.17 $142.97 C2YO Commercial Waste - 2 Yard
Present 2023 Monthly Rate $338.85 $683.23 $1,030.90 $1,381.07 $1,736.18 $2,049.69 $2,427.52 Calculated Maximum 2024 Rate $376.19 $758.52 $1,144.51 $1,533.26 $1,927.51 $2,275.57 $2,695.03 $/Month Change $37.34 $75.29 $113.61 $152.19 $191.33 $225.88 $267.51 C3YO Commercial Waste - 3 Yard
Present 2023 Monthly Rate $511.02 $1,028.25 $1,548.45 $2,070.22 $2,593.79 $3,148.77 $3,707.59 Calculated Maximum 2024 Rate $567.33 $1,141.56 $1,719.09 $2,298.36 $2,879.63 $3,495.76 $4,116.17 $/Month Change $56.31 $113.31 $170.64 $228.14 $285.84 $346.99 $408.58 C4YO Commercial Waste - 4 Yard
Present 2023 Monthly Rate $697.60 $1,407.25 $2,116.92 $2,834.67 $3,555.42 $4,306.14 $5,072.49 Calculated Maximum 2024 Rate $774.48 $1,562.33 $2,350.20 $3,147.05 $3,947.23 $4,780.68 $5,631.48 $/Month Change $76.88 $155.08 $233.28 $312.38 $391.81 $474.54 $558.99 C6YO Commercial Waste - 6 Yard
Present 2023 Monthly Rate $1,072.86 $2,175.92 $3,270.75 $4,356.31 $5,457.32 $6,597.40 $7,727.11 Calculated Maximum 2024 Rate $1,191.09 $2,415.71 $3,631.19 $4,836.38 $6,058.72 $7,324.43 $8,578.64 $/Month Change $118.23 $239.79 $360.44 $480.07 $601.40 $727.03 $851.53 309
Review of the Proposed 2024 Solid Waste Rates 23
City of Belmont – Review of 2024 Solid Waste Rates

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 2024. The maximum calculated rate assumes a 11.02% increase from the present rates. Some minor rounding of the rates may occur for purposes of ease of administration.
310
Review of the Proposed 2024 Solid Waste Rates 24
City of Belmont – Review of 2024 Solid Waste Rates
Table 4 – 5
Summary of the Present and Calculated Maximum Commercial Organics (By Gallon Cart Size; Regularly Scheduled - $/Month)
Collection – Times Per Week
Schedule 1 2 3 4 5 6 7
C32O Commercial Organics – 32 Gallon
Present 2023 Monthly Rate $35.94 $73.94 $110.06 $151.14 $191.20 $239.26 $291.45 Calculated Maximum 2024 Rate $39.90 $82.09 $122.19 $167.80 $212.27 $265.63 $323.57 $/Month Change $3.96 $8.15 $12.13 $16.66 $21.07 $26.37 $32.12 C64O Commercial Organics – 64 Gallon
Present 2023 Monthly Rate $69.47 $140.15 $212.63 $285.93 $363.44 $442.85 $518.46 Calculated Maximum 2024 Rate $77.13 $155.59 $236.06 $317.44 $403.49 $491.65 $575.59 $/Month Change $7.66 $15.44 $23.43 $31.51 $40.05 $48.80 $57.13 C96O Commercial Organics – 96 Gallon
Present 2023 Monthly Rate $100.39 $205.62 $312.05 $422.10 $533.66 $671.76 $783.72 Calculated Maximum 2024 Rate $111.45 $228.28 $346.44 $468.62 $592.47 $745.79 $870.09 $/Month Change $11.06 $22.66 $34.39 $46.52 $58.81 $74.03 $86.37 311
Review of the Proposed 2024 Solid Waste Rates 25
City of Belmont – Review of 2024 Solid Waste Rates
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 11.02% 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)
Schedule Rate
C3CG Commercial Waste 3 Yard Compactor
Present 2023 Monthly Rate $1,753.01
Calculated Maximum 2024 Rate $1,946.19
$/Month Change $193.18
Solid Waste Compactor Rate Per Yard
Present 2023 Monthly Rate $134.87
Calculated Maximum 2024 Rate $149.73
$/Month Change $14.86

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 338.496 for 2023 and the April CPI-U-General for 2022 is 324.878. Therefore, each Maximum Rate is multiplied by the April CPI-U-General for 2023 and divided by the April CPI-U-General for 2022. This resulted in an overall rate increase of 4.19% (338.496 / 324.878) for Attachment Q rates effective in 2024 for the additional services. Details of the Additional Service rates (Schedule Q) can be found in Technical Appendix B.

4.9 City Council Review
The results of the study will be presented to the City of Belmont City Council on September 12, 2023. This reflects the proposed 11.02% rate adjustment for 2024 rates for the scheduled services, Schedule L, and a 4.19% rate adjustment for additional services, Schedule Q. If accepted by the City Council, the proposed rates will be presented at a public hearing on November 14, 2023.
312
Review of the Proposed 2024 Solid Waste Rates 26
City of Belmont – Review of 2024 Solid Waste Rates

4.10 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 2024 were calculated in a manner which reflected the intent of the Agreement.
313
Summary of the Solid Waste Rate Findings, Conclusions and Recommendations 27 City of Belmont – Review of 2024 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 12, 2023, HDR will present the proposed 2024 rates for Schedule L of 11.02% and unscheduled services, Schedule Q, of 4.19% to the City Council. If accepted by the City Council, the proposed rates will be presented at a public hearing on November 14, 2023.

5.3 Looking Ahead – Future Rate Adjustment to 2025
The 2025 rate adjustment will include CPI value adjustment components for the current year (2024 for rate year 2025) compared to the 2020 CPI value components and the adjusted 2021 target revenue. The multiplier will be based on the 2025 Total Target Revenue compared to the 2024 Total Target Revenue of $9,740,248.

5.4 Summary
This completes the review conducted by HDR for the City of Belmont on the proposed 2024 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 Summary of Solid Waste Rate Findings,
Conclusions and Recommendations
314
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 2024 rates.

Attachment L
Maximum Rate Schedule
Effective January 1, 2024 to December 31, 2024
Monthly Rate
Technical Appendix A – Attachment L
Regularly Scheduled Service
20 32 64 96
1 Pickup Per Week $40.21 $47.97 $94.43 $141.65
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

RESIDENTIAL CARTS
Cart Size (in Gallons)
315
Attachment L
Maximum Rate Schedule
Effective January 1, 2024 to December 31, 2024
Monthly Rate
20 32 64 96
1 $51.30 $56.96 $110.15 $159.21
2 105.54 117.27 222.27 326.13
3 157.13 174.56 337.25 494.92
4 215.72 239.68 453.46 669.47
5 272.93 303.23 576.40 846.39
6 341.50 379.43 702.41 1,065.43
7 416.00 462.21 822.28 1,242.98
The monthly rate above includes the following:

One (1) Garbage Cart
Recycling Cart
32 64 96
1 $39.90 $77.13 $111.45
2 82.09 155.59 228.28
3 122.19 236.06 346.44
4 167.80 317.44 468.62
5 212.27 403.49 592.47
6 265.63 491.65 745.79
7 323.57 575.59 870.09
NoteOrganics 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
316
Attachment L
Maximum Rate Schedule
Effective January 1, 2024 to December 31, 2024
Monthly Rate
1 2 3 4 6
1 $267.16 $537.40 $810.49 $1,106.39 $1,701.55
2 543.92 1,083.62 1,630.75 2,231.90 3,451.00
3 825.42 1,635.00 2,455.83 3,357.44 5,187.44
4 1,110.21 2,190.39 3,283.37 4,495.78 6,909.10
5 1,397.29 2,753.63 4,113.77 5,638.92 8,655.30
6 1,743.88 3,250.82 4,993.93 6,829.48 10,463.49
7 2,057.57 3,850.04 5,880.24 8,044.96 12,255.20
The monthly rate above includes the following:

One (1) Garbage Bin
Recycling container at customer's requested size
1 2 3 4 6
1 $187.02 $376.19 $567.33 $774.48 $1,191.09
2 380.73 758.52 1,141.56 1,562.33 2,415.71
3 577.78 1,144.51 1,719.09 2,350.20 3,631.19
4 777.15 1,533.26 2,298.36 3,147.05 4,836.38
5 978.11 1,927.51 2,879.63 3,947.23 6,058.72
6 1,220.73 2,275.57 3,495.76 4,780.68 7,324.43
7 1,440.31 2,695.03 4,116.17 5,631.48 8,578.64
NoteOrganics 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
Bin Size (in Cubic Yards)
# of Pickups Per Week

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

COMMERCIAL BINS ORGANICS
317
Attachment L
Maximum Rate Schedule
Effective January 1, 2024 to December 31, 2024
Monthly Rate
Commercial Waste 3 Yard Compactor $1,946.19
Solid Waste Compactor Rate Per Yard $149.73
The monthly fee above includes the following:

Recycling container at customer's requested size

GARBAGE COMPACTORS
318
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 2024 rates.

Schedule Q
Additional Services (Continued)
Technical Appendix B – Attachment Q
Additional Services
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
319
Schedule Q Additional Services (Continued)
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
$20.16 for SFD
$20.16 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
$1.32 per Recycling Cart
$4.01 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 $109.61 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 - $11.42 per usage B - $12.76 per usage
Monthly cost:

A-Residential Customers
B-Commercial Customers
10 Lock Purchase Section 8.02.B $22.85 per lock Per lock 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 $10.74
minimum
Per bag
13 Container Cleaning Service Section 8.05.D A - $67.20 B - $114.24
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 - $87.36
B - $100.80
C - $114.24
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 $1,612.72 Per event
320
Schedule Q
Additional Services (Continued)
No. Additional Service Category Reference
Agency-Approved Maximum
Rate Description
16 Additional Compost Material
Delivery
Section 5.11 A - $167.98 per delivery
B - $335.99 per delivery
A - "one-way" only delivery by
Contractor where Contractor delivers
to and unloads compost at an Agencyapproved location
B- "Round-trip" delivery by
Contractor where Contractor delivers
compost in a Drop Box to an Agencyapproved 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 $27,416.46 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 - $4,031.82
B - $6,719.71
C - $10,079.58
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
321
Schedule Q Additional Services (Continued)
m Curb** One (1) Solid
Waste Cart
Two (2) Solid
Waste Carts
Three (3) Solid
Waste Carts
Four (4) Solid
Waste Carts
Distance <= 50 feet $24.17 $38.58 $77.21 $115.79
50 < Distance <= 100 feet 28.23 42.64 81.23 119.84
100 < Distance <= 150 feet 32.24 46.66 85.24 123.86
150 < Distance <= 200 feet 36.29 50.70 89.28 127.91
200 < Distance <= 250 feet 40.31 54.72 93.33 131.94
250 < Distance <= 300 feet 44.35 58.75 97.36 135.95
300 < Distance <= 350 feet 48.39 62.78 101.40 139.98
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. 322
CITY OF_ BELMONT
1 Twin Pines Lane
Belmont, CA 94002
Presorted
First-Class Mail
U.S. Postage
PAID
San Bruno, CA
Permit No. 655
This notice is to advise Belmont property owners
and solid waste customers of the City Council
proceedings to consider maximum allowable rates
for garbage and recyclables collection services in
the City of Belmont.

Adoption of new rates will result in the maximum
rates related charges in 2024. Belmont follows the
protest procedures of Proposition 218 and Article
XIIID of the California Constitution.

WHAT DO RATES PAY FOR?
• Operation of the Shoreway Environmental Center for waste and recycling
• Residential weekly curbside collection for garbage,
recycling, and organics
• Commercial collection for garbage, recycling, and organics • Two free pre-scheduled bulky item pick-ups per year.
• Curbside cell phone & battery collection -- place on top of black cart in a clear plastic bag
• Holiday tree recycling
• Free mattress recycling at Shoreway
• Once-a-year free, confidential document shredding event • Energy-efficient, cleaner emission garbage and recycling collection trucks
• Street Sweeping
For additional information and to see a complete listing of all proposed rates, including commercial rates, visit www.belmont.gov/departments/public-works/garbage-recycling. �
OJ
;
I.-..

Cl.I
Q_
V)
Q_
\...J
·-
Q_
'o-
::t:t::

Proposed Rates effective Jan. 1, 2024 through Dec. 31, 2024 - 11.02% increase over 2023 rates.

COMMERICAL CARTS co,MMERICAL BINS
Monthly rates based on cart size in gallons. Organics rates an webpage. Momhly rates based on bin size in wbicyards. Organics rates on webpuge. 1 $51.30 $56.96 $110.15 $159.21 1 $267.16 $537.40 $810.49 $1,106.39 $1,701.55 2 105.54 117.27 222.27 326.13 2 543.92 1,083.62 1,630.75 2,231.90 3,451.00 �
OJ
3 157.13 174.56 337.25 494.92 OJ 3 825.42 1,635.00 2,455.83 3,357.44 5,187.44 s:

I.-..

Cl.I
Q_
4 215.72 239.68 453.46 669.47 V) 4 1,110.21 2,190.39 3,283.37 4,495.78 6,909.10 Q_ �
\...J
·-
5 272.93 303.23 576.40 846.39 Q_ 5 1,397.29 2,753.63 4,113.77 5,638.92 8,655.30 'o- *
6 341.50 379.43 702.41 1,065.43 6 1,743.88 3,250.82 4,993.93 6,829.48 10,463.49 7 416.00 462.21 822.28 1,242.98 7 2,057.57 3,850.04 5,880.24 8,044.96 12,255.20 See , everse for residential rate ro osals.
323
324

Council Compensation
Meeting Date: November 14, 2023
Agency: City of Belmont
Staff Contact: Ann Ritzma, Interim Administrative Services Director, [email protected] Agenda Title: City Council Compensation Review
Agenda Action: Discussion & Direction
Recommendation
Review the options for City Council compensation and provide direction to staff.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
On September 12, 2023, Councilmember Latimerlo and Mayor Mates brought forward a matter of Council discussion on the topic of Councilmember compensation. In July, in an effort to increase equitable representation at city government levels, the State of California passed legislation (SB 329: city council members: compensation. (ca.gov)) which increases the salary that may be paid by ordinance to City Council members in cities of 35,000 or fewer in population. SB 329 addresses the issue of stagnant compensation for city council members in general law cities.

The analysis of the SB 329 states, “Lengthy time commitments and limited pay discourage many, especially low-income residents, single parents, people of color, and young people, from running for public office. For many, being a council member is a full-time commitment with part-time pay. This important legislation lessens barriers for those interested in governing at the local level. This overdue reform is another tool communities can choose to use that can help ensure our city councils are reflective of the residents who live, work, and play in their communities.” Existing law authorizes a city council to enact an ordinance to provide each member of the city council with a salary based on the population of the city. The City of Belmont has not had an increase in council compensation since 1995 when it increased by $90 to $390 (present amount) monthly. Increasing council compensation makes serving on a city council viable for individuals from across different incomes levels.

Many of the cities in San Mateo County have increased their council salary within the past ten years. For cities that provide a salary, Belmont is one of the lowest. 325

Council Compensation
City Monthly
Compensation
Effective Date Population
Daly City* $2,390 2022 101,243
South San Francisco $1,000 2018 64,251
Palo Alto $1,000 2017 63,210
Colma $961 2018 1,600
Half Moon Bay $955 2021 11,363
Redwood City* $750 2022 80,076
Pacifica $700 2022 37,099
Menlo Park $600 2018 28,847
East Palo Alto $600 2018 28,847
San Mateo* $600 2002 100,106
Burlingame $590 2023 29,685
San Carlos $560 2018 29,387
Foster City $546 2022 35,517
San Bruno $486 2001 42,275
Brisbane $400 2015 5,400
Belmont $390 1995 26,773
Millbrae $345 1999 22,277
Woodside $0
Atherton $0
Portola Valley $0
Hillsborough $0
* The new legislation does not apply to charter cities
Analysis
Council salary can be changed by ordinance or ballot measure. The legislation authorizes an increase in salary by ordinance based on the population of the city. In cities up to and including 35,000 in population, in an amount that would be up to and including $950/month.

The ordinance must be presented in two regular meetings of the City Council. At the first meeting, the proposed ordinance would be presented with findings demonstrating the need for the increased compensation and at the second meeting the ordinance could be considered for adoption. Pursuant to Government Code section 36516.5, any council salary increase may take effect only when at least one member of the council commences for the term of office following the 2024 Municipal Election.

If the city council would like to consider an amount greater than $950, the question of salary can be submitted to the voters in any municipal election.

Alternatives

1. Take no action

2. Direct staff to draft an ordinance for council consideration that increases council salary up to and including $950/month and would be operative on the first payroll following the certification of the next municipal election in November 2024.
326

Council Compensation
Attachments
A. SB 329
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

Any change to compensation would be incorporated into the into next FY 2024-25 budget during the annual budget
development process.

Source: Purpose: Public Outreach:

Council Discretionary Action Posting of Agenda
327
Senate Bill No. 329
CHAPTER 27
An act to amend Section 36516 of the Government Code, relating to local government.
[Approved by Governor June 29, 2023. Filed with Secretary of State June 29, 2023.]
legislative counsel’s digest
SB 329, Dodd. Cities: city council members: compensation.

Existing law authorizes a city council to enact an ordinance to provide each member of the city council a salary based upon the population of the city, as specified. Existing law authorizes that amount to be increased by the city council by an amount that does not exceed 5% for each calendar year from the operative date of the last adjustment of the salary that is in effect when the increase is enacted. Existing law provides for the procedures by which a city may enact ordinances.

This bill would increase the maximum amount of salary, based upon the population of the city, that may be approved by an ordinance passed by the city council, as specified. The bill would authorize the salary of council members to be increased beyond the specified maximums to an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted, or an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10% for each calendar year. The bill would require the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least 2 regular meetings of the city council.

The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following:
(a)  The compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation.
(b)  Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families.

SEC. 2. Section 36516 of the Government Code is amended to read:

96 32831
36516. (a)  (1)  A city council may enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city as set forth in paragraph (2).
(2)  The salaries approved by ordinance under paragraph (1) shall be as follows:
(A)  In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month.
(B)  In cities over 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month.
(C)  In cities over 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month. (D)  In cities over 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month. (E)  In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month. (F)  In cities over 250,000 population, up to and including three thousand two hundred dollars ($3,200) per month.
(3)  For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.
(4)  The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed the greater of either of the following:
(A)  An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted.
(B)  An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.
(5)  No ordinance shall be enacted or amended to provide automatic future increases in salary.
(b)  Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.
(c)  Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount 96 Ch. 27 — 2 —
32932
of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body.
(d)  Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees.
(e)  Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section. (f)  A city council member may waive any or all of the compensation permitted by this section.
(g)  (1)  For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council.
(2)  At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting.
(3)  At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance.

O
96 — 3 — Ch. 27
3303
Senate Bill No. 329
CHAPTER 27
An act to amend Section 36516 of the Government Code, relating to local government.
[Approved by Governor June 29, 2023. Filed with Secretary of State June 29, 2023.]
legislative counsel’s digest
SB 329, Dodd. Cities: city council members: compensation.

Existing law authorizes a city council to enact an ordinance to provide each member of the city council a salary based upon the population of the city, as specified. Existing law authorizes that amount to be increased by the city council by an amount that does not exceed 5% for each calendar year from the operative date of the last adjustment of the salary that is in effect when the increase is enacted. Existing law provides for the procedures by which a city may enact ordinances.

This bill would increase the maximum amount of salary, based upon the population of the city, that may be approved by an ordinance passed by the city council, as specified. The bill would authorize the salary of council members to be increased beyond the specified maximums to an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted, or an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10% for each calendar year. The bill would require the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least 2 regular meetings of the city council.

The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following:
(a)  The compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation.
(b)  Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families.

SEC. 2. Section 36516 of the Government Code is amended to read:

96 32831
36516. (a)  (1)  A city council may enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city as set forth in paragraph (2).
(2)  The salaries approved by ordinance under paragraph (1) shall be as follows:
(A)  In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month.
(B)  In cities over 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month.
(C)  In cities over 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month. (D)  In cities over 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month. (E)  In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month. (F)  In cities over 250,000 population, up to and including three thousand two hundred dollars ($3,200) per month.
(3)  For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.
(4)  The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed the greater of either of the following:
(A)  An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted.
(B)  An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.
(5)  No ordinance shall be enacted or amended to provide automatic future increases in salary.
(b)  Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.
(c)  Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount 96 Ch. 27 — 2 —
32932
of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body.
(d)  Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees.
(e)  Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section. (f)  A city council member may waive any or all of the compensation permitted by this section.
(g)  (1)  For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council.
(2)  At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting.
(3)  At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance.

O
96 — 3 — Ch. 27
3303