generated. There will be a move away from landfilling organic waste (like food, paper, and yard waste). The Town is partnering with SBWMA, Recology, and San Mateo County to implement the SB 1383 requirements.
The Town is a member of the South Bayside Waste Management Authority Joint Powers Agreement (SBWMA). Under the SBWMA Joint Powers Agreement, each member agency sets its own solid waste rates for residential and commercial customers. Each of the eleven SBWMA member jurisdictions has a franchise agreement with Recology of San Mateo County for residential and commercial solid waste, residential recycling, and residential green waste collections. The current franchise agreement runs from January 1, 2021, through December 31, 2035. In addition, a contract with South Bay Recycling provides for operations at the Shoreway Environmental Center, which is owned the SBWMA. The Shoreway facility serves as a regional solid waste and recycling facility for the receipt, handling and transfer of refuse, recyclable, and organic materials.
Solid waste rates are determined by three major factors. First and foremost is the annual cost of collection and disposing of garbage and recyclables. Solid waste, recyclable, and organic materials are collected by Recology and taken to the Shoreway facility for processing, staging and shipment.
The franchise agreement with Recology is a “fixed cost” contract where future costs are adjust based on contractually approved indices. The second largest factor in the costs of solid waste services is in the form of disposal fees (tipping fees at the Shoreway facility and the landfill).
Tipping fees are approved by the SBWMA Board and then passed through to the SBWMA agencies to be added to rates. Finally, the Town charges certain city fees and costs to Recology, including a franchise fee which was negotiated between the parties and is a term under the franchise agreement. The franchise fee is charged to Recology as compensation for the grant of an exclusive franchise within the Town, and in consideration for the right to use the Town’s public rights of way. Recology has determined to meet this obligation through billing Hillsborough customers directly.
APPROACH
The Town sent a Request for Proposal (RFP) for rate consulting services for the solid waste rate study. After a competitive selection process, HF&H Consultants (HF&H) were determined to be the most qualified consultant based on their relevant experience in rate studies. HF&H Consultants were awarded the contract and have prepared the Draft Solid Waste Rate Study Report that calculates projected rates for a five-year planning period (2023-2027).
A five-year financial projection was prepared to analyze and establish a rate plan that supports the projected revenue requirement. The Town’s solid waste rate revenues are used to fund solid waste services provided to the customers of the Town’s solid waste system. Projections and key assumptions are outlined in the HF&H Draft Solid Waste Rate Study Report.
The Financial Advisory Committee reviewed the solid waste rate study at its August 2, 2022 meeting and recommends the proposed rate study. The proposed rate changes would be effective starting January 1, 2023. These increases cover the revenue requirements and are outlined in the HF&H Draft Solid Waste Rate Study Report.
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Agenda Staff Report - Hillsborough City Council
August 08, 2022
This agenda item is a Study Session Item only to review the draft solid waste rate study. At the September 13, 2022 City Council meeting, the City Council will review, and if appropriate, accept the HF&H Solid Waste Rate Study Report. In addition, the City Council will review, and if appropriate, approve the release of the Proposition 218 notice to property owners and direct city staff to mail the notice of the public hearing on the proposed rates and charges. At the November 14, 2022 City Council meeting, it is recommended that the City Council consider the adoption of the proposed rates adjustments pursuant to the public hearing and majority protest procedural requirements of Proposition 218.
The Proposition 218 process requires the Town to hold a public hearing on the proposed rates for the charges and to mail notice of the public hearing to property owners who are directly liable for the payment of solid waste charges not less than 45 days before the public hearing to adopt the rates for the service fees or charges. They are subject to the protest proceeding wherein the adoption of any new or increase in any existing charge cannot be adopted if the Town receives written protests to the proposed fees and charges from a majority (50% + 1) of the record owners of parcels upon which the charges are proposed for imposition or tenants who are directly liable for the payment of the proposed solid waste charges.
Below are the key dates for review, adoption, and implementation of the proposed rates effective January 1, 2023. The process follows Proposition 218 guidelines.
FAC Review: August 2, 2022
City Council Meeting – Study Session: August 8, 2022
City Council Meeting – Approve 218 process: September 12, 2022 Notice to Rate Payers: September 16, 2022
Public Hearing and Adopt Resolution: November 14, 2022
City Council Meeting – Adopt Charges for County Roll: July 2023 FISCAL IMPACT: There is no fiscal impact to the Town with this agenda item.
ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment. It is also exempt on a separate and independent basis pursuant to CEQA Guideline 15273 as it constitutes the establishment of rates by the Town for the purpose of meeting operating expenses, meeting financial needs, etc. and pursuant to Guideline 15273, CEQA does not apply.
ATTACHMENTS:
1. Draft HF&H Solid Waste Rate Study Report
2. PowerPoint Presentation
3. Draft Proposition 218 Notice
PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION: No action required; City Council provide feedback to staff on the solid waste rates, as needed.
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Agenda Staff Report - Hillsborough City Council
August 08, 2022
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July 26, 2022 – DRAFT REPORT
THE TOWN OF HILLSBOROUGH
SOLID WASTE RATE STUDY
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ATTACHMENT 1
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Managing Tomorrow’s Resources Today
201 N. Civic Drive, Suite 230 Robert D. Hilton, Emeritus Walnut Creek, California 94596 John W. Farnkopf, PE
Telephone: 925/977‐6950 Laith B. Ezzet, CMC
www.hfh‐consultants.com Richard J. Simonson, CMC
Marva M. Sheehan, CPA
Robert C. Hilton, CMC
July 26, 2022
Ms. Jan Cooke
Finance Manager
Town of Hillsborough
1600 Floribunda Avenue
Hillsborough, CA 94010
Subject: Solid Waste Rate Study – Draft Report
Dear Ms. Cooke:
HF&H Consultants, LLC (HF&H) is pleased to submit this Cost of Service (COS) report to the Town of Hillsborough (Town). The report is organized beginning with determining how much projected revenue is needed from solid waste rates during the next five fiscal years (FYs), FY 2022‐23 through FY 2026‐27.
The report describes how the collection, processing, and disposal costs are apportioned between residential and commercial customers. The report concludes with a discussion of the rate design that is appropriate for each customer class to ensure that customers are paying their proportionate share.
The report reflects input from the Town’s staff in refining the rates. The resulting rate increases are necessary for several reasons: (1) the cost of collection of solid waste, recycling, and organics materials has increased; (2) the cost of processing recyclable materials and organic materials has increased; (3) the cost of landfilling solid waste has increased; and (4) new State‐mandated diversion programs require additional funding.
* * * *
We are pleased to have had the opportunity to assist the Town with this study and would like to thank you for your support during the project.
If you have any questions, please call me at (925) 977‐6957 Sincerely,
HF&H CONSULTANTS, LLC
Rick Simonson, CMC
Senior Vice President
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Town of Hillsborough Table of Contents, Definitions, Limitations, and Acknowledgments Draft Report Solid Waste Rate Study
HF&H Consultants, LLC i July 26, 2022
TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................ 1 Annual Revenue Reconciliation/Balancing Account................................................... 1 Proposition 218 .......................................................................................................... 1 Study Purpose and Objectives ................................................................................... 2 Findings and Recommendations................................................................................ 2 Implementation .......................................................................................................... 5 SECTION 1. INTRODUCTION ........................................................................................ 6 Study Purpose ........................................................................................................... 6 Billing Procedures and Current Rates ........................................................................ 6 Legal Requirements ................................................................................................... 7 SECTION 2. REVENUE REQUIREMENT PROJECTIONS ............................................ 9 Balancing Account ..................................................................................................... 9 Expense Projections .................................................................................................. 9 Revenue Increases .................................................................................................. 16 SECTION 3. COST OF SERVICE STUDY .................................................................... 17 Methodology ............................................................................................................ 17 2023 Cost-of-Service ............................................................................................... 17 SECTION 4. RATE DESIGN – 2023 COST-OF-SERVICE ........................................... 19 Volumetric (Variable) Collection Costs ..................................................................... 19 Fixed Collection Costs – Solid Waste ...................................................................... 21 Tipping Fees at the Shoreway Environmental Center .............................................. 22 Multiple Collections per Week .................................................................................. 23 Additional Solid Waste Containers ........................................................................... 24 Total Cost/Rate by Customer Class and Service Level - 1st Container .................... 25
ATTACHMENTS
A Rate Model
B Complete list of Commercial Bin Rates
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Town of Hillsborough Table of Contents, Definitions, Limitations, and Acknowledgments Draft Report Solid Waste Rate Study
HF&H Consultants, LLC ii July 26, 2022
ACRONYMS/DEFINITIONS
FY Fiscal Year
COS Cost‐of‐Service
ECU Equivalent Container Unit
ECF Equivalent Container Factor
Fixed Collection Costs Costs not dependent on the subscribed volume of service.
Frequency Surcharge Additional cost for receiving service multiple times per week. Routing is negatively impacted when trucks must return to areas previously serviced.
FTE Full time equivalent
MRF Material Recovery Facility
Organics Refers primarily to food, green material, landscape and/or pruning waste.
SB 1383 California law to reduce short‐lived climate pollutants, including methane.
Reduction of organic waste disposal is a primary component resulting in new yard and food waste recycling organics programs to be in effect beginning January 1, 2022.
SFR Single‐Family Residential
Transfer Facility Refers to the Shoreway Environmental Center in San Carlos. Solid Waste and Organic Materials collected in the Town are delivered to the Shoreway Environmental Center and transferred to the Processing or Disposal Site.
Volumetric charge Refers to the variable costs associated with the size of the container subscribed to by residential or commercial customers.
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Town of Hillsborough Table of Contents, Definitions, Limitations, and Acknowledgments Draft Report Solid Waste Rate Study
HF&H Consultants, LLC iii July 26, 2022
ACKNOWLEDGEMENTS
City Council
Alvin Royse, Mayor
Christine Krolik, Vice Mayor
Marie Chuang, Councilmember
Sophie Cole, Councilmember
Laurence May, Councilmember
Financial Advisory Committee
Charles “Chick” Adams, Chair
Richard Kuersteiner, Member
Jeffrey Baxter, Member
Joel Friedman, Member
Michele Gutierrez, Member
Catherine Lee, Member
Tom Maloney, Member
D. Paul Regan, Member Emeritus
Town Staff
Ann Ritzma, City Manager
Jan Cooke, Finance Director
Paul Willis, Public Works Director
Rich Santiago, Assistant Finance Director
Legal Counsel
Lutfi Kharuf, Esq.
HF&H Consultants, LLC
Rick Simonson, C.M.C., Senior Vice President
Gabe Sasser, P.E., Senior Associate
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Town of Hillsborough Table of Contents, Definitions, Limitations, and Acknowledgments Draft Report Solid Waste Rate Study
HF&H Consultants, LLC iv July 26, 2022
LIMITATIONS
This study was prepared solely for the Town of Hillsborough (Town) in accordance with the contract between the Town and HF&H and is not in intended for use by any other party for any other purpose.
In preparing this study, HF&H relied on information from the Town’s franchised solid waste hauler, Recology of San Mateo County, which we consider to be accurate and reliable and did not independently verify.
The cost‐of‐service model and accompanying analyses contain projections of revenues and expenditures based on various assumptions and estimates. While we reviewed these projections with Town staff for reasonableness, actual results of operations will usually differ from projections because events and circumstances do not always occur as expected. Those differences may be significant and materially affect the analyses and findings presented in this report.
Rounding differences caused by stored values in electronic models may exist.
This study addresses relevant laws, regulations, and court decisions but should not be relied upon as legal advice. Questions concerning the interpretation of legal authorities referenced in this study should be referred to a qualified attorney.
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Town of Hillsborough Executive Summary
Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 1 July 26, 2022
EXECUTIVE SUMMARY
The Town is a member of the South Bayside Waste Management Authority Joint Powers Agreement (SBWMA). Under the SBWMA Joint Powers Agreement, each member agency sets its own solid waste rates for residential and commercial customers. Each of the eleven SBWMA member jurisdictions has a franchise agreement with Recology of San Mateo County (Recology) for residential and commercial solid waste, residential recycling, and residential green waste collections. The current franchise agreementruns from January 1, 2021, through December 31, 2035. Recology provides service to approximately 3,800 residential accounts and 6 commercial accounts in the Town.
In addition, a contract with South Bay Recycling provides for operations at the Shoreway Environmental Center (SEC), which is owned the SBWMA. The Shoreway facility serves as a regional solid waste and recycling facility for the receipt, handling and transfer of refuse, recyclable, and organic materials.
For the annual contractors’ compensation review process, staff reviews the various cost components attributable to its solid waste services, which in turn determines the revenue required from its customers for subsequent rate years. Each member of the SBWMA is responsible for establishing the rates in their respective jurisdictions. The rates are then applied based on the garbage cart/bin size of the customer and frequency of collection services.
The Town’s residential accounts are billed for services in two ways: 1) a flat $330 annual charge on the tax roll (which equates to $27.50/month); and, 2) a monthly charge, billed quarterly, by Recology, based on the size of solid waste container placed for collection (20‐gallon, 32‐gallon, etc.). Commercial customers are also billed quarterly by Recology based on the size of container placed for collection (32‐ gallon cart, 1 cubic yard bin, etc.) and the frequency of collection (1 time per week, 2 times per week, etc.) Rates are developed to cover costs for the following components:
Recology's compensation to collect and deliver materials to the SEC Tipping (disposal and processing) fees at the SEC
Annual Revenue Reconciliation/Balancing Account
Annually, revenues collected are compared to Recology’s SBWMA‐approved compensation forservicesto the Town. If actual revenues collected exceed the approved compensation, the excess revenue is held by Recology in a balancing account. When actual revenues collected are less than Recology’s approved compensation, the Town’s balancing account is decreased. As of December 31, 2021, the Town has a positive balancing account with Recology of $483,000. The balancing account can go negative if sufficient revenues are not collected. At the expiration of the franchise agreement, the Town will owe Recology if the balancing account is negative or Recology will owe the Town if the balancing account is positive.
Proposition 218
To increase rates for these services, the Town intends to comply with article XIII D, section 6 of the California constitution, which was added by Proposition 218 in 1996. Article XIII D, section 6 requires that:
(1) revenues derived from fees or charges for property‐related services do not exceed the cost to provide service; (2) revenues derived from fees or charges are not be used for any purpose other than that for which it was imposed; (3) the amount of a fee or charge imposed not exceed the proportional cost of the service attributable to the parcel; (4) no fee or charge may be imposed for a service unless that service is -183-
Town of Hillsborough Executive Summary
Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 2 July 26, 2022
actually used by, or immediately available to, the owner of the property; and, (5) no fee or charge may be imposed for general governmental services. The analysis conducted in support of this study was conducted in consultation with the Town and its legal counsel.
Study Purpose and Objectives
The purpose of this solid waste rate study is to conduct a comprehensive analysis of the Town’s solid waste rates, including documentation of the analysis, underlying assumptions, and the rationale for the recommended rates.
This study has several key objectives:
Determine the revenue requirement (expenses) which the Town’s solid waste rates need to cover, including Recology’s compensation, tipping fees and the SEC, while maintaining an adequate balancing account balance with Recology;
Determine the cost of service attributable to parcel based upon the type and size of container serving the property and the subscribed service level; and,
Ensure that the proposed rate structure is compatible with Proposition 218 mandates.
These objectives are met by applying industry best practices and by complying with all applicable laws.
Findings and Recommendations
In preparing this solid waste rate update, the following findings were made.
1. Operating Cost Increases.
a. Recology’s SBWMA‐approved compensation for 2023 is increasing 5.1%. Recology’s allowable compensation is generally tied the percentage increases in various consumer price indices (e.g., fuel, labor, vehicle repairs and maintenance) published by the Bureau of Labor Statistics. Due to current economic conditions, the analysis assumes a 5% increase in compensation in 2024 and 4% annual increases thereafter for years 2025‐ 2027.
b. Tipping fees for materials collected and hauled to the SBWMA’s Shoreway Environmental Center (SEC) for processing or transfer to another processing facility or landfill, are projected to increase by 3.5% in 2023 based on tip fee increases and projected tons. Due to current economic conditions, the analysis assumes a 5% increase in tipping feesin 2024 and 4% annual increases thereafter for years 2025‐2027.
2. Prior Year Revenue Shortfall. A review of current year‐to‐date revenue collected through May 2022 indicatesthat total allowable expenses will exceed rate revenue by approximately $175,000, a 5.0% revenue shortfall.
3. Projected Revenue Increases Needed. The COS study projects the rate increases needed to generate additional overall revenue to cover: 1) the recent cost increases and 2) the prior year revenue shortfall. Comparing the revenue required to cover the cost of providing service with the revenue from current rates indicates the need for rate increases sufficient to generate additional revenue, as follows:
2022 – 5.0%*
2023 – 4.5%
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Town of Hillsborough Executive Summary
Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 3 July 26, 2022
2024 – 4.5%
2025 – 4.0%
2026 – 4.0%
The increases are lower than otherwise needed, as the Town currently has a positive balance in their balancing account with Recology. The increasesreflect drawing the balancing account down by approximately $182,000 (to $234,000) over the five‐year planning period. How the balancing account was established and how it is adjusted annually, is discussed in more detail in Section 2 of this report.
*The percentage increase in revenue needed for 2023 is not applied uniformly to all current rates.
A cost‐of‐service analysis was done (see Section 4 of this report) to apportion costs to each customer class and service level within each of those customer classes. As a result, some service level rates will increase, and some will decrease.
4. 2023 Revenue Increases by Customer Class. Customer classes for the purpose of this study are residential and commercial. Figure ES‐1 compares the revenue from current rates with the COS for 2023, by customer class.
Figure ES‐1. Current Rate Revenue Compared with the Cost of Service (2023)
5. Current and Proposed Residential Rates. Based on the cost‐of‐service analysis (described in detail in Section 4 of this report), which apportions the cost to each level of service (i.e., 20‐gallon cart, 32‐gallon cart, etc.), the monthly charge in rates differs depending on container size. Figure ES‐2 compares the current and proposed residential rates by service level. A breakdown of the proposed rates is included in Section 4, Figure 4‐13.‐Current and proposed rates include weekly solid waste, recycling, and organics collection services.
Figure ES‐2. Current and Proposed Monthly Residential Rates 2023 Revenue at Surplus/ Revenue
Cost of Service Current Rates (Shortfall) Adj
Residential $3,599,699 $3,429,659 ($170,040) 5%
Commercial $98,999 $94,380 ($4,619) 5%
TOTAL $3,698,697 $3,524,039 ($174,658) 5%
MONTHLY RATES Current Proposed $
Rates eff. 1/1/2023 Change 1/1/2024 1/1/2025 1/1/2026 1/1/2027 Flat fee per Parcel $27.50 $28.88 $1.38 $30.32 $31.68 $33.11 $34.60 Service Level2
20‐Gallon Cart $23.55 $29.25 $5.70 $30.57 $31.95 $33.23 $34.56 32‐Gallon Cart $31.90 $35.72 $3.82 $37.33 $39.01 $40.57 $42.19 64‐Gallon Cart $52.86 $55.50 $2.64 $58.00 $60.61 $63.03 $65.55 96‐Gallon Cart $77.15 $80.98 $3.83 $84.62 $88.43 $91.97 $95.65 Extra Organics $23.42 $24.77 $1.35 $25.88 $27.04 $28.12 $29.24 ¹ Billed annually on the tax Roll
² Billed quarterly by Recology
Proposed
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Town of Hillsborough Executive Summary
Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 4 July 26, 2022
6. Current and Proposed Commercial Rates. Based on the cost‐of‐service analysis (described in detail in Section 4 of this report), which apportions the cost to service commercial customers to each level of service, the percentage change in rates differs by level of service. Figures ES‐3 and ES‐4 summarizes the current and 2023 proposed commercial solid waste rates by service level.
Figures ES‐5 and ES‐6 summarizes the current and 2022 proposed commercial organics rates by service level. To minimize the length of the Executive Summary, the respective proposed commercial rates for 2024‐2027 are included in Attachment B.
Figure ES‐3. Monthly Commercial Solid Waste Rates (Current) Figure ES‐4. Proposed Monthly Commercial Solid Waste Rates (effective 1/1/2023) 32 64 96 1 2 3 6
1 /week $49.85 $54.33 $66.28 $127.62 $242.32 $386.48 $966.29 2 /week $80.33 $104.22 $132.78 $236.27 $465.67 $754.00 $1,913.62 3 /week $106.33 $142.17 $185.01 $344.93 $689.02 $1,121.52 $2,860.95 4 /week $132.33 $180.11 $237.23 $453.58 $912.38 $1,489.03 $3,808.28 5 /week $158.32 $218.06 $289.46 $562.24 $1,135.73 $1,856.55 $4,755.61 6 /week $184.32 $256.00 $341.69 $670.89 $1,359.09 $2,224.07 $5,702.94 Additional Containers
1 /week $7.77 $12.26 $24.29 $91.31 $207.02 $352.20 $936.06 2 /week $38.26 $104.22 $132.78 $226.90 $456.30 $744.63 $1,904.25 3 /week $64.26 $142.17 $185.01 $326.19 $670.29 $1,102.78 $2,842.21 4 /week $90.25 $180.11 $237.23 $425.48 $884.28 $1,460.93 $3,780.18 5 /week $116.25 $218.06 $289.46 $524.76 $1,098.26 $1,819.08 $4,718.14 6 /week $142.25 $256.00 $341.69 $624.05 $1,312.25 $2,177.23 $5,656.10 Bin Size (Cubic Yards)
Frequency
Cart Size (Gallons)
32 64 96 1 2 3 6
1 /week $53.10 $66.88 $79.97 $131.96 $249.06 $404.91 $1,027.39 2 /week $79.57 $107.12 $133.31 $246.66 $480.86 $792.54 $2,037.52 3 /week $106.03 $147.36 $186.65 $361.35 $712.65 $1,180.18 $3,047.64 4 /week $132.50 $187.61 $239.99 $476.04 $944.45 $1,567.82 $4,057.77 5 /week $158.96 $227.85 $293.33 $590.74 $1,176.24 $1,955.45 $5,067.89 6 /week $185.43 $268.09 $346.67 $705.43 $1,408.04 $2,343.09 $6,078.02 Additional Containers
1 /week $12.73 $26.59 $39.73 $97.35 $215.47 $372.32 $998.86 2 /week $39.19 $66.83 $93.07 $212.04 $447.26 $759.96 $2,008.98 3 /week $65.66 $107.07 $146.41 $326.74 $679.05 $1,147.59 $3,019.11 4 /week $92.12 $147.31 $199.74 $441.43 $910.85 $1,535.23 $4,029.23 5 /week $118.59 $187.56 $253.08 $556.13 $1,142.64 $1,922.87 $5,039.36 6 /week $145.05 $227.80 $306.42 $670.82 $1,374.44 $2,310.50 $6,049.48 Cart Size (Gallons)
Frequency
Bin Size (Cubic Yards)
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Town of Hillsborough Executive Summary
Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 5 July 26, 2022
Figure ES‐6. Monthly Commercial Organics Rates (Current) Figure ES‐7. Proposed Monthly Commercial Organics Rates (effective 1/1/2023) Implementation
After increasing rates effective January 1, 2023, the Town should monitor its rates before implementing subsequent rate increases. There are future events that will impact the Town’s solid waste operations.
The SBWMA, Recology, and the Town are still evaluating the full impacts of implementing programs related to SB 1383 regulations, which became effective January 1, 2022. Primarily, the requirement for each jurisdiction to purchase 0.08 tons per capita per year of recovered organic material waste products (e.g., compost, mulch, renewable natural gas (RNG), and/or electricity from biomass conversion). In addition, the SBWMA will be renegotiating some long‐term operating and processing contracts at the Shoreway Environmental Center, which are expiring in 2023 and 2024. The cost impacts (either up or down) are unknown at this time and may affect the proposed rates for 2023‐2027 presented above and included in Attachment B (Commercial Bin Rates).
The five‐year financial plan includes annual cost increases of 4%‐5% to account for the unknown costs increases, in addition to baseline inflation. The Town’s balancing account funds are available if costs for the organic material purchases and processing contracts increase costs greater than projected in this five‐ year financial analysis.
32 64 96 1 2 3 6
1 /week $24.92 $27.16 $33.14 $63.81 $121.16 $193.24 $483.15 2 /week $40.16 $52.11 $66.39 $118.14 $232.84 $377.00 $956.81 3 /week $53.16 $71.08 $92.50 $172.46 $344.51 $560.76 $1,430.47 4 /week $66.16 $90.06 $118.62 $226.79 $456.19 $744.52 $1,904.14 5 /week $79.16 $109.03 $144.73 $281.12 $567.87 $928.27 $2,377.80 6 /week $92.16 $128.00 $170.84 $335.45 $679.54 $1,112.03 $2,851.47 Additional Containers
1 /week $3.88 $6.13 $12.14 $45.66 $103.51 $176.10 $468.03 2 /week $19.13 $52.11 $66.39 $113.45 $228.15 $372.32 $952.13 3 /week $32.13 $71.08 $92.50 $163.10 $335.14 $551.39 $1,421.11 4 /week $45.13 $90.06 $118.62 $212.74 $442.14 $730.46 $1,890.09 5 /week $58.13 $109.03 $144.73 $262.38 $549.13 $909.54 $2,359.07 6 /week $71.13 $128.00 $170.84 $312.03 $656.12 $1,088.61 $2,828.05 Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
32 64 96 1 2 3 6
1 /week $26.55 $33.44 $39.99 $65.98 $124.53 $202.45 $513.70 2 /week $39.78 $53.56 $66.66 $123.33 $240.43 $396.27 $1,018.76 3 /week $53.02 $73.68 $93.33 $180.67 $356.33 $590.09 $1,523.82 4 /week $66.25 $93.80 $119.99 $238.02 $472.22 $783.91 $2,028.88 5 /week $79.48 $113.92 $146.66 $295.37 $588.12 $977.73 $2,533.95 6 /week $92.71 $134.05 $173.33 $352.72 $704.02 $1,171.54 $3,039.01 Additional Containers
1 /week $6.36 $13.29 $19.87 $48.68 $107.73 $186.16 $499.43 2 /week $19.60 $33.41 $46.53 $106.02 $223.63 $379.98 $1,004.49 3 /week $32.83 $53.54 $73.20 $163.37 $339.53 $573.80 $1,509.55 4 /week $46.06 $73.66 $99.87 $220.72 $455.42 $767.61 $2,014.62 5 /week $59.29 $93.78 $126.54 $278.06 $571.32 $961.43 $2,519.68 6 /week $72.53 $113.90 $153.21 $335.41 $687.22 $1,155.25 $3,024.74 Bin Size (Cubic Yards)
Frequency
Cart Size (Gallons)
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Town of Hillsborough Section 1. Introduction
Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 6 July 26, 2022
SECTION 1. INTRODUCTION
The Town’s franchised hauler, Recology, provides solid waste, recyclable material, and organics collection services to all residents and businesses in Town
The Town contracted with HF&H to develop a cost‐of‐service rate model and rate structure based on the level of service received by each customer class. The purpose of this report is to document the analysis and summarize our assumptions, findings, and recommendations.
Study Purpose
The main purpose of this report is to document that the proposed rates comply with the relevant laws in California forsetting solid waste rates. Another key purpose isto ensure that the rates generate sufficient revenue to fund the solid waste, recyclable material, and organics collection, processing, and disposal activities over the five‐year planning period (2022‐2026) operating and capital costs as well as to maintain adequate reserves.
Billing Procedures and Current Rates
Residents are billed for weekly collection of solid waste, recyclable material, and organics carts in two ways: 1) a flat $330 annual charge on the tax roll (which equates to $27.50/month); and, 2) a monthly charge, billed quarterly by Recology, based on the size of solid waste container placed for collection (20‐ gallon, 32‐gallon, etc.) and the frequency of service.
Commercial customers are also billed quarterly by Recology, based on the size of solid waste and organics material containers placed for collection (1 cubic yard bin, 2 cubic yard bin, etc.) and how frequently it is collected (1x per week, 2x per week, etc.).
The current rates are summarized in Figures 1‐1 through 1‐3. The amount billed on tax roll is an annual lump sum amount of $330 charged on the tax roll. For analysis of monthly rates, it is reflected in the table as $27.50 per month rate.
Figure 1‐1. – Current Monthly Residential Rates
Billed Billed Total
on Tax Roll by Recology Charge
$/mo $/mo $/mo
Solid Waste Subscription
20‐Gallon Cart $27.50 $23.55 $51.05
32‐Gallon Cart $27.50 $31.90 $59.40
64‐Gallon Cart $27.50 $52.86 $80.36
96‐Gallon Cart $27.50 $77.15 $104.65
Extra Organics Cart (Green) $0.00 $23.42 $23.42
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Town of Hillsborough Section 1. Introduction
Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 7 July 26, 2022
Figure 1‐2. Current Monthly Commercial Solid Waste Rates Figure 1‐3. Current Commercial Organics Rates
Legal Requirements
The Town is responsible for setting rates in compliance with California law. Voters passed Proposition 218 in November 1996, which added article XIII D to the California constitution. Article XIII D section 6(b)(1‐5) has five substantive requirements that must be met:
1. Revenue from rates must not exceed the cost of providing service.
2. Revenue from rates must be used for providing service.
3. Fees and charges imposed must be proportional to the cost of providing the service attributable to the parcel.
4. Fee or charge may not be imposed for a service unless that service is used by, or immediately available to, the owner of the property.
5. No fee or charge may be imposed for general governmental services. 32 64 96 1 2 3 6
1 /week $49.85 $54.33 $66.28 $127.62 $242.32 $386.48 $966.29 2 /week $80.33 $104.22 $132.78 $236.27 $465.67 $754.00 $1,913.62 3 /week $106.33 $142.17 $185.01 $344.93 $689.02 $1,121.52 $2,860.95 4 /week $132.33 $180.11 $237.23 $453.58 $912.38 $1,489.03 $3,808.28 5 /week $158.32 $218.06 $289.46 $562.24 $1,135.73 $1,856.55 $4,755.61 6 /week $184.32 $256.00 $341.69 $670.89 $1,359.09 $2,224.07 $5,702.94 Additional Containers
1 /week $7.77 $12.26 $24.29 $91.31 $207.02 $352.20 $936.06 2 /week $38.26 $104.22 $132.78 $226.90 $456.30 $744.63 $1,904.25 3 /week $64.26 $142.17 $185.01 $326.19 $670.29 $1,102.78 $2,842.21 4 /week $90.25 $180.11 $237.23 $425.48 $884.28 $1,460.93 $3,780.18 5 /week $116.25 $218.06 $289.46 $524.76 $1,098.26 $1,819.08 $4,718.14 6 /week $142.25 $256.00 $341.69 $624.05 $1,312.25 $2,177.23 $5,656.10 Bin Size (Cubic Yards)
Frequency
Cart Size (Gallons)
32 64 96 1 2 3 6
1 /week $24.92 $27.16 $33.14 $63.81 $121.16 $193.24 $483.15 2 /week $40.16 $52.11 $66.39 $118.14 $232.84 $377.00 $956.81 3 /week $53.16 $71.08 $92.50 $172.46 $344.51 $560.76 $1,430.47 4 /week $66.16 $90.06 $118.62 $226.79 $456.19 $744.52 $1,904.14 5 /week $79.16 $109.03 $144.73 $281.12 $567.87 $928.27 $2,377.80 6 /week $92.16 $128.00 $170.84 $335.45 $679.54 $1,112.03 $2,851.47 Additional Containers
1 /week $3.88 $6.13 $12.14 $45.66 $103.51 $176.10 $468.03 2 /week $19.13 $52.11 $66.39 $113.45 $228.15 $372.32 $952.13 3 /week $32.13 $71.08 $92.50 $163.10 $335.14 $551.39 $1,421.11 4 /week $45.13 $90.06 $118.62 $212.74 $442.14 $730.46 $1,890.09 5 /week $58.13 $109.03 $144.73 $262.38 $549.13 $909.54 $2,359.07 6 /week $71.13 $128.00 $170.84 $312.03 $656.12 $1,088.61 $2,828.05 Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
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Town of Hillsborough Section 1. Introduction
Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 8 July 26, 2022
The basis for setting rates that are proportional to the cost of providing service was not prescribed in article XIIID; therefore, the analyst was responsible for meeting the requirements of Sections 6(b) 1‐5, as reasonably as possible. “Reasonable” rates are not capricious (there is a documented source for all data), not arbitrary (decisions required to make assumptions and analyze data have a sound reason), and not discriminatory (the results do not unduly favor one customer at the expense of another).
We interpret this concept to mean that rates must be proportionate to the COS across the range of subscribed service. We further interpret it to mean that the rates for each level of service must correlate with the actual demand that customers place on the collection vehicles and for which the system must be designed to provide the level of service customers require. -190-
Town of Hillsborough Section 2. Revenue Requirement Projections Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 9 July 26, 2022
SECTION 2. REVENUE REQUIREMENT PROJECTIONS
To determine whether additional rate revenue isrequired, projected operating expenses are compared with projected revenue from current rates. Rates are then increased so that projected expenses are covered.
Balancing Account
The franchise agreement with Recology includes an annual revenue reconciliation process where actual revenues billed are compared to Recology’s approved compensation. If there is a positive balancing account, the Town may keep rates flat or increase rates at a lower than necessary level, which draws down the balancing account. Excess revenues are accumulated and tracked by Recology on an annual basis and audited by the SBWMA. If revenues are less than the approved compensation, the balancing account is reduced. The Town currently has a positive balancing account with Recology at $483,083 (as of December 31, 2021). Year‐to‐date projections for 2022 indicate that revenues will be less than Recology’s approved compensation, resulting in a projected balancing account of $415,765 by December 31, 2022, as shown in Figure 2‐1, Row 14). This balancing account is available to keep future rate increases lower than they otherwise would need to be or cover unexpected cost increasesthat were not known at the time rates were set. The estimated 2022 shortfall is not unexpected. The cost‐of‐service analysis conducted last year for 2022 rates indicated double digit increases were necessary to residential 20‐ and 32‐gallon cart rates. To soften the rate impact, City Council approved the use of a portion of the balancing account to phase the increase in over two years.
Figure 2‐1. Balancing Account Summary (2017 ‐ 2022)
1 Attachment Q services are for one‐time, unscheduled, services provided and billed separately by Recology and are not part of base services provided to all customers. Included for informational purposes only, in order to tie with Recology’s annual revenue reconciliation statements.
Expense Projections
Rates are developed to cover costs for the following projected expenses over the five‐year planning period:
Recology’s approved collection costs, including amounts collected for Recology to meet its obligation to pay 2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Estimated
1 $3,162,685 $3,024,026 $3,051,929 $3,177,311 $3,262,909 $3,463,635 2 Base Charge Revenue ‐ Recology (res) $2,119,726 $2,168,990 3 Base Charge Revenue ‐ Tax Roll (res) $1,169,100 $1,228,545 4 Subtotal ‐ Residential Revenue $3,288,826 $3,397,535
5 Base Charge Revenue ‐ Recology (comm) $94,380 $94,380 6 Subtotal ‐ Base Charge Revenue $3,383,206 $3,491,915
7 Sch Q "Extras" Rev. (i.e., backyard srvc) $73,452 $76,967 8 Total Revenue (after rate adjustments) $3,024,026 $3,051,929 $3,177,311 $3,262,909 $3,463,635 $3,568,882 Expenses
9 Recology Collection Costs $1,913,988 $1,967,015 $2,004,278 $2,136,851 $2,085,460 $2,119,350 10 Disposal & Processing Fees $860,690 $886,775 $1,056,999 $1,065,722 $1,160,646 $1,193,348 11 Agency Franchise & Other Fees $275,010 $277,570 $288,973 $296,867 $315,051 $323,500 12 Total Expenses $3,049,688 $3,131,360 $3,350,250 $3,499,440 $3,561,157 $3,636,199 13 Surplus / (Shortfall ) After Rate Increase ($25,662) ($79,431) ($172,939) ($236,531) ($97,522) ($67,318) 14 Balancing Acct. (Proj. Year‐End Balance) $1,069,506 $990,075 $817,136 $580,605 $483,083 $415,765 15 Add/(Less): Adjustments
16 Add/(Less): Adjustments
17 Adjusted Balancing Account (Year‐End) $1,069,506 $990,075 $817,136 $580,605 $483,083 $415,765 Balancing Account as % of Total Rev. Req. 35% 32% 24% 17% 14% 11% Estimated Revenue (Before Rate Increase)
COLLECTION COST PROJECTION
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Town of Hillsborough Section 2. Revenue Requirement Projections Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 10 July 26, 2022
the Town its franchise fee, as well as tipping fees at the Shoreway Environmental center. Projected costs from 2022 through 2027 are summarized in Figure 2‐2, Rows 9‐11).
In addition, Figure 2‐2 summarizes the current revenue at current rates for the five‐year period if rates remained the same. This illustrates the effect on the Town’s balancing account with Recology if rates were not changed during the next five‐year planning period. With no rate increases, the balancing account is projected to be depleted before year‐end 2024. A summary of expense projections follows Figure 2‐2. The next subsection of this report discusses the necessary annual revenue increases to bridge the revenue shortfall if rates remain the same for the next five‐year period.
Figure 2‐2. Projected Expenses (2022‐2027) and Revenue at Current Rates (No Rate Increases) Recology's annual collection compensation (Row 9 in Figure 2‐2) was calculated in accordance with the Franchise Agreement with the Town. Recology’s 2023 compensation calculation is currently being audited by the SBWMA. The audit is scheduled for completion in August 2022, with final compensation approval at the SBWMA’s September Board meeting.
A summary of Recology’s 2023 compensation by customer class is provided in Figure 2‐3 and further details are provided in Figures 2‐4 through 2‐6. For financial planning purposes, Recology’s allowable 2023 compensation is projected to increase by 5.0% in 2024, a greater than historical average to reflect current economic conditions (e.g., increased price of fuel, higher general inflation), and 4.0% per year thereafter.
Franchise fees are levied by the Town on Recology pursuant to the Franchise Agreement. The franchise fee is an obligation of Recology’s, paid out of the total amount imposed on ratepayers. (Row 11 in Figure 2‐2).
Tipping (disposal and processing) fees at the Shoreway Environmental Center (Row 10 in Figure 2‐2). 2023 tipping fees are estimated by the SBWMA based on projected volumes collected within the Town and the approved per‐ton tips by material type. A summary of the SBWMA’s 2023 projections, by customer class, is provided in Figure 2‐7. Similar to Recology’s collection costs, the SBWMA’s 2023 tipping fees are projected to increase by 5.0% in 2024, and 4.0% each year thereafter.
Revenue Increase and Cost Inflation Factors
2022
Estimated
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2023 vs
2022 %
2024 vs
2023 %
2025 vs
2024 %
2026 vs
2025 %
2027 vs
2026 %
1 $3,463,635 $3,568,882 $3,628,327 $3,628,327 $3,628,327 $3,628,327 ASSUMING NO RATE INCREASES 2 Base Charge Revenue ‐ Recology (res) $2,168,990 $2,168,990 $2,168,990 $2,168,990 $2,168,990 $2,168,990 3 Base Charge Revenue ‐ Tax Roll (res) $1,228,545 $1,287,990 $1,287,990 $1,287,990 $1,287,990 $1,287,990 4 Subtotal ‐ Residential Revenue $3,397,535 $3,456,980 $3,456,980 $3,456,980 $3,456,980 $3,456,980 5 Base Charge Revenue ‐ Recology (comm) $94,380 $94,380 $94,380 $94,380 $94,380 $94,380 6 Subtotal ‐ Base Charge Revenue $3,491,915 $3,551,360 $3,551,360 $3,551,360 $3,551,360 $3,551,360 7 Sch Q "Extras" Rev. (i.e., backyard srvc) $76,967 $76,967 $76,967 $76,967 $76,967 $76,967 8 Total Revenue (after rate adjustments) $3,568,882 $3,628,327 $3,628,327 $3,628,327 $3,628,327 $3,628,327 Expenses
9 Recology Collection Costs $2,119,350 $2,226,580 $2,337,909 $2,431,425 $2,528,682 $2,629,829 5.1% 5.0% 4.0% 4.0% 4.0% 10 Disposal & Processing Fees $1,193,348 $1,235,248 $1,297,010 $1,348,891 $1,402,846 $1,458,960 3.5% 5.0% 4.0% 4.0% 4.0% 11 Agency Franchise & Other Fees $323,500 $339,572 $339,572 $339,572 $339,572 $339,572 5.0% 0.0% 0.0% 0.0% 0.0% 12 Total Expenses $3,636,199 $3,801,399 $3,974,491 $4,119,887 $4,271,100 $4,428,361 13 Surplus / (Shortfall ) After Rate Increase ($67,318) ($173,073) ($346,164) ($491,561) ($642,774) ($800,035) 14 Balancing Acct. (Proj. Year‐End Balance) $415,765 $242,692 ($103,472) ($595,033) ($1,237,806) ($2,037,841) Estimated Revenue (Before Rate Increase)
COLLECTION COST PROJECTION
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Town of Hillsborough Section 2. Revenue Requirement Projections Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 11 July 26, 2022
Figure 2‐3. Summary of Recology’s 2023 Projected Compensation 1 Allocated based on percentage share of total number of accounts 2 Allocated based on percentage share of direct costs 3 Source: Figure 2‐4 4 Source: Figure 2‐5 5 Source: Figure 2‐6 6 Revenue billed by Recology for non‐base services which does not come from base rates. 7 Source: Figure 2‐7 8 Estimate based on 10% of anticipated revenue after rate adjustments Town
Facilities1 Other2 2022 Total
Collection Compensation ‐ Base Services
Residential $2,119,701 3 $11,356 $0 $2,131,057
Commercial $57,098 4 $18 $0 $57,116
Total ‐ Base Services $2,176,799 $11,374 5 $0 $2,188,173 Plus: Recology Sch. Q rate revenue for extra services $38,407 6 $2,226,580
Tip Fees7
Residential $1,128,485 $73,149 $0 $1,201,634
Commercial $33,496 $118 $0 $33,614
Total $1,161,981 $73,267 $0 $1,235,248
Franchise Fees8
Residential $330,572 $0 $0 $330,572
Commercial $9,000 $0 $0 $9,000
Total $339,572 $0 $0 $339,572
Total Recology Compensation by Customer Class(from above) Residential $3,578,758 $84,505 $0 $3,663,263
Commercial $99,594 $136 $0 $99,730
Total $3,678,352 $84,641 $0 $3,762,993
Plus: Recology Sch. Q rate revenue for extra services $38,407 TOTAL Revenue Requirement $3,801,399
Allocated Costs
Direct
Costs
Customer
Class
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Town of Hillsborough Section 2. Revenue Requirement Projections Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 12 July 26, 2022
Figure 2‐4. Recology’s 2023 Projected Compensation – Residential Services Cost Category
Solid Waste
Targeted
Recyclable
Materials
Organic
Materials
On-call /
Abandoned
Material
Single
Family
Dwelling
Total
Annual Cost of Operations
Direct Labor-Related Costs
Wages for CBAs $229,226 $201,523 $197,279 $32,726 $660,754 Benefits for CBAs $99,888 $91,647 $87,599 $16,743 $295,877 Payroll Taxes $18,567 $16,323 $15,980 $2,651 $53,521
Workers Compensation Insurance $16,332 $14,358 $14,055 $2,537 $47,282 Total Direct Labor Related-Costs $364,013 $323,851 $314,913 $54,657 $1,057,434 Direct Fuel Costs $36,218 $38,162 $38,256 $2,333 $114,969 Other Direct Costs $32,013 $33,731 $34,235 $2,379 $102,358 Depreciation - Collection Vehicles $33,255 $32,172 $38,001 $2,033 $105,461 Depreciation - Containers $10,563 $10,810 $15,008 $0 $36,381 Depreciation for Collection Equipment $43,818 $42,982 $53,009 $2,033 $141,842 Lease $0 $0 $0 $0 $0
Allocated Indirect Costs excluding Depreciation and Interest (Form 9) $0 General and Administrative $73,301 $75,504 $75,704 $2,081 $226,590 Operations $21,288 $22,811 $26,833 $425 $71,357
Vehicle Maintenance $40,687 $43,597 $51,284 $811 $136,379 Container Maintenance $10,679 $11,022 $12,439 $299 $34,439 Total Allocated Indirect Costs excluding Depreciation and Interest $145,955 $152,934 $166,260 $3,616 $468,765 Total Allocated Indirect Depreciation Costs (Form 9) $1,207 $1,297 $1,564 $24 $4,092 Annual Implementation Cost Amortization (Form A) $0 $0 $0 $0 $0 Total Annual Cost of Operations $623,224 $592,957 $608,237 $65,042 $1,889,460 Profit (insert Operating Ratio below) $65,421 $62,244 $63,848 $6,828 $198,341
0.905
Total Proposed Costs before Pass-Through Cost Allocation $688,645 $655,201 $672,085 $71,870 $2,087,801 Contractor Pass-Through Costs
Lift Adjustments/Disincentive Pymts to Town -$3,261 -$3,261 Interest Expense $10,873 $10,664 $13,145 $479 $35,161
Total Contractor Pass-Through Costs $7,612 $10,664 $13,145 $479 $31,900 TOTAL BASE CONTRACTOR'S COMPENSATION $696,257 $665,865 $685,230 $72,349 $2,119,701 -194-
Town of Hillsborough Section 2. Revenue Requirement Projections Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 13 July 26, 2022
Figure 2‐5. Recology’s 2022 Approved Compensation – Commercial Services Cost Category
Solid Waste
Targeted
Recyclable
Materials
Organic
Materials Drop Box
On-call /
Abandoned
Material
MFD &
Commercial
Total
Annual Cost of Operations
Direct Labor-Related Costs
Wages for CBAs $5,240 $929 $5,485 $0 $5,275 $16,929
Benefits for CBAs $2,354 $392 $1,629 $0 $2,468 $6,843
Payroll Taxes $424 $75 $444 $0 $427 $1,370
Workers Compensation Insurance $373 $66 $391 $0 $409 $1,239 Total Direct Labor Related-Costs $8,391 $1,462 $7,949 $0 $8,579 $26,381 Direct Fuel Costs $907 $144 $1,102 $0 $865 $3,018
Other Direct Costs $843 $156 $895 $0 $759 $2,653
Depreciation - Collection Vehicles $547 $113 $1,317 $0 $556 $2,533 Depreciation - Containers $63 $125 $374 $0 $100 $662
Depreciation for Collection Equipment $610 $238 $1,691 $0 $656 $3,195 Lease $0 $0 $0 $0 $0 $0
Allocated Indirect Costs excluding Depreciation and Interest (Form 9) $0 General and Administrative $588 $794 $3,533 $0 $856 $5,771 Operations $269 $96 $2,285 $0 $175 $2,825
Vehicle Maintenance $514 $184 $4,367 $0 $334 $5,399
Container Maintenance $76 $177 $633 $0 $123 $1,009
Total Allocated Indirect Costs excluding Depreciation and Interest $1,447 $1,251 $10,818 $0 $1,488 $15,004 Total Allocated Indirect Depreciation Costs (Form 9) $16 $7 $139 $0 $10 $172 Annual Implementation Cost Amortization (Form A) $0 $0 $0 $0 $0 $0 Total Annual Cost of Operations $12,214 $3,258 $22,594 $0 $12,357 $50,423 Profit (insert Operating Ratio below) $1,282 $342 $2,372 $0 $1,297 $5,293
0.905
Total Proposed Costs before Pass-Through Cost Allocation $13,496 $3,600 $24,966 $0 $13,654 $55,716 Contractor Pass-Through Costs
Interest Expense $270 $91 $721 $0 $300 $1,382
Total Contractor Pass-Through Costs $270 $91 $721 $0 $300 $1,382 TOTAL BASE CONTRACTOR'S COMPENSATION $13,766 $3,691 $25,687 $0 $13,954 $57,098 -195-
Town of Hillsborough Section 2. Revenue Requirement Projections Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 14 July 26, 2022
Figure 2‐6. Recology’s 2022 Approved Compensation – Agency Facilities Cost Category
Cart and Bin
Solid Waste
Cart and Bin
Organic
Materials
Cart and Bin
Recyclable
Materials
Drop Box Venues and
Events
Agency
Facilities
Total
Annual Cost of Operations
Direct Labor-Related Costs
Wages for CBAs $62 $222 $424 $1,437 $80 $2,225
Benefits for CBAs $27 $98 $187 $634 $35 $981
Payroll Taxes $5 $18 $34 $116 $6 $179
Workers Compensation Insurance $4 $16 $30 $102 $6 $158
Total Direct Labor Related-Costs $98 $354 $675 $2,289 $127 $3,543 Direct Fuel Costs $11 $39 $75 $255 $15 $395
Other Direct Costs $14 $50 $95 $323 $19 $501
Depreciation - Collection Vehicles $16 $78 $169 $778 $28 $1,069 Depreciation - Containers $0 $0 $0 $0 $0 $0
Depreciation for Collection Equipment $16 $78 $169 $778 $28 $1,069 Lease $0 $0 $0 $0 $0 $0
Allocated Indirect Costs excluding Depreciation and Interest (Form 9) General and Administrative (using $34 $142 $322 $1,414 $588 $2,500 Operations $10 $41 $93 $409 $18 $571
Vehicle Maintenance $19 $79 $178 $782 $34 $1,092
Container Maintenance (using lifts for Agency Costs) $5 $20 $46 $203 $84 $358 Total Allocated Indirect Costs excluding Depreciation and Interest $68 $282 $639 $2,808 $724 $4,521 Total Allocated Indirect Depreciation Costs (Form 9) $1 $3 $6 $28 $1 $39 Annual Implementation Cost Amortization (Form A) $0 $0 $0 $0 $0 $0 Total Annual Cost of Operations $208 $806 $1,659 $6,481 $914 $10,068 Profit (insert Operating Ratio below) $22 $85 $174 $681 $96 $1,058
0.905
Total Operating Costs before Pass-Through Cost Allocation $230 $891 $1,833 $7,162 $1,010 $11,126 Contractor Pass-Through Costs $0
Interest Expense $4 $18 $39 $180 $7 $248
Total Contractor Pass-Through Costs $4 $18 $39 $180 $7 $248 TOTAL BASE CONTRACTOR'S COMPENSATION $234 $909 $1,872 $7,342 $1,017 $11,374 -196-
Town of Hillsborough Section 2. Revenue Requirement Projections Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 15 July 26, 2022
Figure 2‐7. Summary of Tipping Fees (2023‐2027)
Source: Projected 2023 tip fee provided by the SBWMA financial manager; subsequent tip fees projected by HF&H based on average historical increases and current economic conditions Per‐Ton Tip Fees projected projected projected projected projected 2023 2024 2025 2026 2027
5.0% 4.0% 4.0% 4.0%
Material Type
Solid Waste $137 $144 $150 $156 $162
Organics $145 $152 $158 $165 $171
Recycling $0 $0 $0 $0 $0
Commercial Food Waste $145 $152 $158 $165 $171
Agency C&D ‐ Self‐haul $120 $126 $131 $136 $142
Tons projected projected projected projected projected
2023 2024 2025 2026 2027
Residential
Solid Waste 2,580 2,580 2,580 2,580 2,580
Organics 5,345 5,345 5,345 5,345 5,345
Recycling 1,884 1,884 1,884 1,884 1,884
Total Residential 9,809 9,809 9,809 9,809 9,809
Commercial
Solid Waste 163 163 163 163 163
Organics 77 77 77 77 77
Recycling 50 50 50 50 50
Total Residential 290 290 290 290 290
Agency
Solid Waste 246 246 246 246 246
Organics 157 157 157 157 157
Recycling 250 250 250 250 250
Agency C&D ‐ Self‐haul 140 140 140 140 140
Total Residential 793 793 793 793 793
Total Tip Fee Expenses projected projected projected projected projected 2023 2024 2025 2026 2027
Residential
Solid Waste $353,460 $371,133 $385,978 $401,417 $417,474 Organics $775,025 $813,776 $846,327 $880,180 $915,388
Recycling $0 $0 $0 $0 $0
Total Residential $1,128,485 $1,184,909 $1,232,306 $1,281,598 $1,332,862 Commercial
Solid Waste $22,331 $23,448 $24,385 $25,361 $26,375
Organics $11,165 $11,723 $12,192 $12,680 $13,187
Recycling $0 $0 $0 $0 $0
Total Residential $33,496 $35,171 $36,578 $38,041 $39,562 Agency
Solid Waste ‐ Coll Route $33,702 $35,387 $36,803 $38,275 $39,806 Organics ‐ Coll Route $22,765 $23,903 $24,859 $25,854 $26,888 Recycling $0 $0 $0 $0 $0
Agency C&D ‐ Self‐haul $16,800 $17,640 $18,346 $19,079 $19,843 Total Residential $73,267 $76,930 $80,008 $83,208 $86,536 GRAND TOTAL TIP FEES $1,235,248 $1,297,010 $1,348,891 $1,402,846 $1,458,960 -197-
Town of Hillsborough Section 2. Revenue Requirement Projections Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 16 July 26, 2022
Revenue Increases
Working with staff, proposed revenue increases were derived to cover the cost of providing service to property within the Town (Row 11 of Figure 2‐7). Figure 2‐7 summarizes the projected revenue from proposed rate increases, annual revenue requirements, and the projected year‐end balancing account balance by 2027. The revenue projections assume the full cost‐of‐service rate increases are implemented to meet the current year revenue requirement.
The revenue increase strategy was to utilize a small portion of the balancing account each year to reduce the necessary rate increases (see Row 13 of Figure 2‐7). This strategy allows the Town to avoid a rate spike necessary to meet the Town’s updated cost of service, while also keeping a reasonable balancing account balance in case of higher than expected cost increasesin the future. The proposed annual revenue increases are shown on Row 6 of Figure 2‐7. These annual revenue increases are achieved by increasing Recology’s base rates by the percentages shown on Rows 2 and 3). It should be noted that in Calendar Year 2023, actual revenues are projected to increase 5.9% with only an average rate increase of 5.0%. The higher revenue resultsfrom the 10% increase in the Town’stax roll charge, adopted by Council in 2021, which went into effect July 1, 2022. The 5.9% in additional revenue in Calendar Year 2023 includes the second six months of the tax roll increase in addition to the 5.0% average increase proposed to be effective January 1, 2023.
Figure 2‐7. Projected Expenses (2023‐2027) and Revenue at Proposed Revenue Increases Revenue Increase and Cost Inflation Factors
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2023 vs
2022 %
2024 vs
2023 %
2025 vs
2024 %
2026 vs
2025 %
2027 vs
2026 %
1 $3,568,882 $3,773,695 $3,943,268 $4,117,251 $4,282,396 2 Base Charge Revenue ‐ Recology (res) $2,277,439 $2,379,924 $2,487,021 $2,586,502 $2,689,962 5.0% 4.5% 4.5% 4.0% 4.0% 3 Base Charge Revenue ‐ Tax Roll (res) $1,320,190 $1,382,818 $1,445,045 $1,506,380 $1,566,635 5.0% 4.5% 4.5% 4.0% 4.0% 4 Subtotal ‐ Residential Revenue $3,597,629 $3,762,742 $3,932,066 $4,092,882 $4,256,597 5.9% 4.5% 4.5% 4.0% 4.0% 5 Base Charge Revenue ‐ Recology (comm) $99,099 $103,558 $108,218 $112,547 $117,049 5.0% 4.5% 4.5% 4.0% 4.0% 6 Subtotal ‐ Base Charge Revenue $3,696,728 $3,866,301 $4,040,284 $4,205,429 $4,373,646 5.9% 4.5% 4.5% 4.0% 4.0% 7 Sch Q "Extras" Rev. (i.e., backyard srvc) $76,967 $76,967 $76,967 $76,967 $76,967 0.0% 0.0% 0.0% 0.0% 0.0% 8 Total Revenue (after rate adjustments) $3,773,695 $3,943,268 $4,117,251 $4,282,396 $4,450,613 5.7% 4.5% 4.4% 4.0% 3.9% Expenses
9 Recology Collection Costs $2,226,580 $2,337,909 $2,431,425 $2,528,682 $2,629,829 5.1% 5.0% 4.0% 4.0% 4.0% 10 Disposal & Processing Fees $1,235,248 $1,297,010 $1,348,891 $1,402,846 $1,458,960 3.5% 5.0% 4.0% 4.0% 4.0% 11 Agency Franchise & Other Fees $339,572 $354,809 $370,775 $385,559 $400,982 5.0% 4.5% 4.5% 4.0% 4.0% 12 Total Expenses $3,801,399 $3,989,728 $4,151,091 $4,317,088 $4,489,771 13 Surplus / (Shortfall ) After Rate Increase ($27,704) ($46,460) ($33,840) ($34,692) ($39,159) 14 Balancing Acct. (Proj. Year‐End Balance) $388,060 $341,600 $307,761 $273,068 $233,910 15 Add/(Less): Adjustments
16 Add/(Less): Adjustments
17 Adjusted Balancing Account (Year‐End) $388,060 $341,600 $307,761 $273,068 $233,910 Balancing Account as % of Total Rev. Req. 10% 9% 7% 6% 5% Estimated Revenue (Before Rate Increase)
COLLECTION COST PROJECTION
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Town of Hillsborough Section 3. Cost of Service Study
Draft Report Solid Waste Rate Study
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SECTION 3. COST OF SERVICE STUDY
Methodology
A COS Study determines the unit cost of the services provided to the Town’s solid waste customers. Each customer class is charged the same unit cost for its share of the services that it requires. In this way, the total revenue requirement is split between the fixed service charges and the volumetric charges; with the volumetric chargesfurther proportioned among the customer classes. The customer classesfor thisstudy are residential and commercial.
The majority of the Town’s solid waste services are related to meeting customer demands for the solid waste, recycling, and organics collection services.
The collection services vary based on the customer’s subscribed size and type of container (bin vs. cart vs. roll‐off) used for the collection of solid waste materials.
The solid waste collection service levels are defined as follows:
1. Residential Customers – Cart customers receive service in a 20‐ 32‐, 64‐ or 96‐gallon cart for solid waste, a 64‐gallon cart for recycling, and a 96‐gallon cart for organics. Additional carts may be provided if requested, for an additional fee. The carts are typically collected by an automated side loader truck. The complete costs of the
collection, transportation, and disposal system includes three main categories: 1) Recology’s approved collection expenses; 2) processing and disposal costs at the SBWMA’s Shoreway Environmental Center; and, 3) Town franchise fees. The
franchises cover the Town’s overhead costs to manage the contract with Recology, participate as a member of the
SBWMA JPA, provide community outreach and education, etc.
2. Commercial Customers – Commercial customerstypically receive service in bins (ranging from 1 – 6 cubic yards) as they produce more materials than a typical household. The bins are collected by a front‐loader truck.
Commercial customer can choose their containers size, including carts, and how frequently the container is collected each week (up to 6 times per week). The size and frequency of collection will differ between container type (solid waste, recycling, organics) and by customer. 2023 Cost-of-Service
Figure 3‐1 summarizes the net revenue requirement by customer class. As shown in Figure 3‐1, the Town’s tax roll billing and Recology’s base rate services billings are not the only sources of revenue to cover the $3,798,110 cost‐of‐service for 2023 (Row 12 in Figure 2‐7). In addition to tax roll and base rate revenues, other revenues used to keep rates as low as practical include: contributions from the balancing account and revenue from backyard collection services.
Solid Waste Bin
Solid Waste
Cart Recycling
Cart
Organics
Cart
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Figure 3‐1. 2023 Net Revenue Requirement by Customer Class The customer class allocations and the expenses attributable to customer accounts are compared with the estimated revenue from current rates in Figure 3‐2.
Figure 3‐2. Current Rate Revenue Compared to Cost of Service Rates need to be designed to generate each class’s share of the revenue requirement. Section 4 provides a recommended rate structure to meet the COS.
Town
Facilities Other 2022 Total
Recology Compensation
Collection Costs
Residential $2,119,701 $11,356 $0 $2,131,057
Commercial $57,098 $18 $0 $57,116
Agency Franchise Fees & Other Fees
Residential $330,572 $0 $0 $330,572
Commercial $9,000 $0 $0 $9,000
Tip Fees
Residential $1,128,485 $73,149 $0 $1,201,634
Commercial $33,496 $118 $0 $33,614
Total ‐ Base Services $3,678,352 $84,641 $0 $3,762,993
Plus: Recology Sch. Q revenue not included in base comp $38,407 Total Compensation $3,801,400
Total Recology Compensation by Customer Class
Residential $3,578,758 $84,505 $0 $3,663,263
Commercial $99,594 $136 $0 $99,730
Total $3,678,352 $84,641 $0 $3,762,993
Plus: Recology Sch. Q expenses not included in base comp, billed separately $36,857 GROSS Revenue Requirement (from Figure 2‐8, Row 12) $3,799,850 Net Revenue Requirement by Customer Class
Residential Commercial Total
Gross Revenue Requirement $3,663,263 $99,730 $3,762,993 Less: Backyard Service Revenue1 ($36,594) $0 ($36,594)
Less: Contribution from Balancing Acct2 ($26,970) ($734) ($27,704) Net Revenue needed from Rates $3,599,698 $98,996 $3,698,694 1 Cos t of providing backya rd service is included in Recology's di rect cos ts. Residents wi th backya rd collection service a re billed di rectly and not included in the base ra tes. This revenue is removed to avoid double counting. 2 Alloca ted to each cus tomer cla s s based on thei r res pective percentage s ha re of Gros s Revenue Requi rement Customer
Class
Direct
Costs
Allocated Costs
2023 Revenue at Surplus/ Revenue
Cost of Service Current Rates (Shortfall) Adj
Residential $3,599,699 $3,429,659 ($170,040) 5%
Commercial $98,999 $94,380 ($4,619) 5%
TOTAL $3,698,697 $3,524,039 ($174,658) 5%
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Town of Hillsborough Section 4. Rate Design – 2023 Cost-of-Service Draft Report Solid Waste Rate Study
HF&H Consultants, LLC 19 July 26, 2022
SECTION 4. RATE DESIGN – 2023 COST-OF-SERVICE
This section discusses the design of volumetric charges for the various sizes of carts, bins, and roll‐off customers, as well as the fixed service charges for each customer class. All cost categories were evaluated to determine if the cost would fluctuate (variable) or remain constant (fixed) and if there were variances in the subscribed level ofservice and type of container. The following methodology was used to calculate the cost‐of‐service by service level and customer class for all solid waste, recycling, and service level organics. Only the solid waste calculations have been provided in detail in the section. The full model is included in Attachment A.
Volumetric (Variable) Collection Costs
Volumetric (variable) collection costs are proportional costs based on the subscribed size and type of container for carts and bins. To properly allocate the variable costs, the various factors identified below were calculated based on existing subscription levels of the Town’s residents and businesses. The variable collection costs exclude transfer and disposal and fixed costs, which are calculated separately.
Full Time Equivalent Route Factors – Solid Waste
The subscribed level of service of each customer, in essence, reserves that equivalent volume of space in the collection vehicle. Recology must route its drivers and vehiclesin order to ensure the collection trucks on those routes have sufficient capacity to accept the amount of material set out for collection by the customer. The size of the containers multiplied by the number of containers will determine the amount of truck capacity required. Therefore, a “Full Time Equivalent Route Factor” (FTE Route Factor) was calculated for each container size based on Recology’s actual collection trucks capacity, average route hours, and disposal trip time. Figure 4‐1 lists the FTE Route Factors for Carts and Bins:
Figure 4‐1. Solid Waste Full Time Equivalent Route Factor Equivalent Container Factor – Solid Waste Carts and Bins An Equivalent Container Factor (ECF) was calculated to determine the variable component of the monthly rates as follows:
1. An adjusted number of loads for each size of container were calculated assuming 100% of customers subscribed to one size.
2. An adjusted loads cost was determined based on the actual collection costs divided by actual loads multiplied by the adjusted Loads.
Customer Sub‐Class
FTE Route
Factor
Residential
20Gallon 1.00
32Gallon 1.33
64Gallon 1.82
96Gallon 2.32
Commercial
1 Cubic Yard 1.40
2 Cubic Yard 1.73
3 Cubic Yard 2.17
6 Cubic Yard 3.26
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Town of Hillsborough Section 4. Rate Design – 2023 Cost-of-Service Draft Report Solid Waste Rate Study
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3. The ECF was calculated by dividing the adjusted Loads Costs (step 2) by the minimum cost per load.
Figure 4‐2 lists the ECF for each customer class:
Figure 4‐2. Solid Waste Equivalent Container Factor
Equivalent Container Units – Solid Waste Carts and Bins Equivalent Container Units (ECU) were calculated to properly allocate the variable collection costs, excluding the solid waste transfer, disposal, and processing costs. ECUs were calculated by multiplying the number of containers by size, by the applicable ECF. Current containers in service were provided by the Town from Recology’s billing system and operational data. Figure 4‐3 shows the calculation of the ECU’s for each customer class.
Figure 4‐3. Solid Waste Equivalent Container Units
Customer Sub‐Class
Equivalent
Container
Factor (ECF)
Residential
20 Gallon 1.00
32 Gallon 2.13
64 Gallon 5.84
96 Gallon 11.13
Commercial
1 Cubic Yard 1.00
2 Cubic Yard 2.47
3 Cubic Yard 4.65
6 Cubic Yard 14.03
Customer Sub‐Class
Equivalent
Container
Factor
(ECF)*
Current
Containers
in Service
Equivalent
Container
Units
(ECU)*
A BA X B = C
Residential
20 Gallon 1.00 549 549 32 Gallon 2.13 1,722 3,664 64 Gallon 5.84 1,076 6,281 96 Gallon 11.13 441 4,908 Total Carts ECUs 15,402
Commercial
1 Cubic Yard 1.00 4 4 2 Cubic Yard 2.47 7 17 3 Cubic Yard 4.65 5 23 6 Cubic Yard 14.03 3 42 Total Bins ECUs 87
* Totals may differ due to rounding
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Town of Hillsborough Section 4. Rate Design – 2023 Cost-of-Service Draft Report Solid Waste Rate Study
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Variable Route Collection Costs Calculation – Solid Waste Annual variable costs were determined based on the review of Recology’s 2023 SBWMA‐approved compensation (which includes the 10% Town franchise fee). These variable costs vary based on the size, type, and number of containers and frequency of service. Costs include items such as: labor, equipment operation, and maintenance.
Residential Customers
Figure 4‐4 shows the calculation of the monthly variable route collection costs per month for residential services.
Figure 4‐4. Solid Waste Variable Route Collection Costs per Month ‐ Residential Commercial Customers
Figure 4‐5 shows the calculation of the monthly variable route collection costs per month for commercial services.
Figure 4‐5. Solid Waste Variable Route Collection Costs – Commercial Fixed Collection Costs – Solid Waste
Fixed collection costs (Fixed Costs) are determined based on Recology’s SBWMA‐approved 2022 compensation that are not dependent on the subscribed service volume. Costs include such items as:
customer service representatives, billing costs, on‐call collection costs, cost to collect for Town facilities, etc. These costs are borne equally be each rate payer, regardless of the level of service. Figure 4‐7 shows the calculation of Fixed Costs for solid waste carts and bins.
Cart Size (Gallons)
20 32 64 96
Annual Variable Costs 665,779 $ A
Equivalent Container Units (ECU) 15,402 B
Annual Variable Costs per ECU 43.23 $ A / B = C Monthly Variable Cost per ECU 3.60 $ C / 12 = D Equivalent Container Factor E 1.00 2.13 5.84 11.13 Variable Route Collection Costs per Month* D x E $ 3.60 $ 7.66 $ 21.03 $ 40.09 * Totals may vary slightly due to rounding
123 6
Annual Variable Costs 57,055 $ A
Equivalent Container Units (ECU) 87 B Annual Variable Costs per ECU 657.61 $ A / B = C Monthly Variable Cost per ECU 54.80 $ C / 12 = D Equivalent Container Factor E 1.00 2.47 4.65 14.03 Variable Route Collection Costs per Month D x E $ 54.80 $ 135.47 $ 254.95 $ 768.63 * Totals may vary slightly due to rounding
Bin Size (Cubic Yards)
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Town of Hillsborough Section 4. Rate Design – 2023 Cost-of-Service Draft Report Solid Waste Rate Study
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Figure 4‐7. Fixed Cart and Bin Collection Costs – Solid Waste Tipping Fees at the Shoreway Environmental Center
All material is collected by Recology or direct‐hauled to the SBWMA’s Shoreway Environmental Center for further processing, transfer, and disposal. The projected costs are based on anticipated volume of materials delivered to the facility at the SBWMA‐approved rates (see Figure 2‐6).
The cost per gallon or cubic yard of service is calculated by dividing the projected disposal costs by the number of subscribed gallons or cubic yards. Figure 4‐8 summarizes the cost per month to dispose of the collected solid waste at the Shoreway Environmental Center (on a per pull per week basis).
Figure 4‐8. Cart and Bin Tipping Fees – Solid Waste
Figures 4‐9 and 4‐10 summarize the cost to service solid waste residential carts and commercial bins collected one time per week (first container) based on the calculations in Figures 4‐4 to 4‐7 above. Note:
The calculated costs summarized in Figures 4‐9 and 4‐10 do not constitute the total monthly cost to provide all services provided. The calculated costs shown are for solid waste container collection only.
All customers receive at least weekly collection of all three container types: solid waste, recycling, and organics. These figures are for illustrative purposes to document the methodology for calculating the cost‐of‐service by customer class and container type. The complete model, which calculates the costs for recycling and organic container collection as well, is included in Attachment A. The total monthly cost (and their respective components) for each customer class and service level is summarized in Figures 4‐9 to 4.10 of this Section.
Customer Class Residential Commercial
Total Annual Fixed Costs A $187,187 $2,930
Number of Accounts B 3,722 6
Fixed Cost per Year A / B = C $50.29 $488.26
Fixed Cost per Month C / 12 = D $4.19 $40.69
2022 Solid Waste Tip Fees A $426,609 $22,449
Subscribed Gallons /Cubic Yards B 177,284 51
Tip Fee per Gallon /Cubic Yard A / B = C $2.41 $438.81
Container Size 20‐Gal 32‐Gal 64‐Gal 96‐Gal 1 CY 2 CY 3 CY 6 CY Tip Fee per Month per pull/wk C/12 * Size $4.01 $6.42 $12.83 $19.25 $36.57 $73.14 $109.70 $219.41 Carts Bins
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Town of Hillsborough Section 4. Rate Design – 2023 Cost-of-Service Draft Report Solid Waste Rate Study
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Figure 4‐9. Residential Solid Waste Cost of Service (Service 1x per Week, First Container) Figure 4.10: Commercial Solid Waste Cost of Service (Service 1x per Week, First Container) Multiple Collections per Week
A rate for service that is provided to the same customer multiple times per week has the following components:
First Service Day during a week ‐ Base rate
Next Service Day during a week – Base rate less fixed portion plus a frequency surcharge. The frequency surcharge is the additional cost (based on the driver’s hourly compensation and additional route time) for the driver to return to the area another day of the week, which results in less efficient routes.
Figure 4‐11 is an example of the calculation of the COS rate for a 1‐yard bin of solid waste serviced 2 times per week. The fixed portion is removed for each additional service day of service. 20‐gallon 32‐gallon 64‐gallon 96‐gallon
Solid Waste Collection ‐ 1st Container
Variable 3.60 $ $ 7.66 $ 21.03 $ 40.09 Fixed 4.19 $ $ 4.19 $ 4.19 $ 4.19 Transfer/Disposal 4.01 $ $ 6.42 $ 12.83 $ 19.25 Cost per Month 11.80 $ $ 18.27 $ 38.05 $ 63.53 Residential Carts
1 CY 2 CY 3 CY 6 CY
Solid Waste Collection ‐ 1st Container(before Frequency Charges) Variable 54.80 $ $ 135.47 $ 254.95 $ 768.62
Fixed 40.69 $ $ 40.69 $ 40.69 $ 40.69
Transfer/Disposal 36.57 $ $ 73.14 $ 109.70 $ 219.41 Cost per Month 132.06 $ $ 249.30 $ 405.34 $1,028.72 Commercial Bins
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Town of Hillsborough Section 4. Rate Design – 2023 Cost-of-Service Draft Report Solid Waste Rate Study
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Figure 4‐11. Example of Monthly Rate Calculation for 1 Cubic Yard Bin Collected 2x per Week Additional Solid Waste Containers
There are occasions, due to service demands, where a customer may have more than one solid waste container. A rate for the additional container includes the disposal component, the variable component, and only a portion of the fixed container component. The rate for an additional container at a customer’s property should not include those fixed costs which they have already paid for in the first container.
Customers should not pay fixed costs twice. For example, the cost for Recology to provide residential customers with two on‐call clean up events has been allocated equally to each residential customer by being included in the fixed cost of the first container. The only portion of fixed costs that are included in the rate for an additional container isthe cost of the container (i.e., depreciation) itself. Figure 4‐12 shows a calculation for an additional 96‐gallon residential solid waste cart serviced one time per week of $59.79 per month, which is lower than the cost of the first container ($63.53 per month, see Figure 4‐9).
Figure 4‐12. Calculation of Monthly Rate for an Additional Solid Waste 96 Gallon Cart This calculation was done for each container type (carts and bins) and size. The calculations are contained within the model in Attachment A.
Base Rate for 1 Cubic Yard Bin, Collection 1x per Week) A $ 131.96 Fixed Portion B $ 40.69
Frequency Surcharge (per trip beyond the first trip) C $ 23.42 Rate Calculation
1st Day of Service during the week
Base Rate A $ 131.96
2nd Day of Service during the week
Base Rate A 131.96
Fixed Portion B (40.69)
Frequency Surcharge C 23.42
Total Rate ‐ 1 Cubic Yard Bin, Collected 2x per Week $ 246.66 96‐gallon Cart Rate Components
Transfer/Disposal (source: Figure 4‐9) A $ 19.25
Additional Fixed: Container Depreciation (monthly) B $ 0.44 Variable Operating Costs (source: Figure 4‐9) C $ 40.09 Rate Calculation
Additional Container
Disposal A $ 19.25
Fixed Portion B 0.44
Variable Portion C 40.09
Rate for Additional Solid Waste 96‐gallon Cart $ 59.79 -206-
Town of Hillsborough Section 4. Rate Design – 2023 Cost-of-Service Draft Report Solid Waste Rate Study
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Total Cost/Rate by Customer Class and Service Level - 1st Container Residential
The cost‐of‐service methodology described above for deriving the cost to collect solid waste containers, was used to calculate the cost‐of‐service to collection recycling and organics containers. The detailed calculations are included in the model included in Attachment A. Figure 4‐13 summarizes the monthly costs for Recology to provide weekly solid waste, recyclable material, and organics collection, processing, and disposal services. The costs are broken down by container type for illustrative purposes; however, customers are billed the total monthly rate based on the size of their solid waste container. Figure 4‐13 also reflects the fact that a portion of each customer’s rate for their first container is billed annually on the tax roll ($330 per year = $27.50 per month). The remaining costs are included in the monthly rate billed quarterly by Recology.
Figure 4‐13. Residential Cost‐of‐Service (2023) and Monthly Rates Commercial
The cost‐of‐service methodology described above for deriving the cost to collect solid waste containers, was used to calculate the cost‐of‐service to collection recycling and organics containers. The detailed calculations are included in the model included in Attachment A.
Figure 4‐14 summarizes the monthly costs for Recology to provide solid waste and recyclable material collection services, which is billed quarterly by Recology and based on each commercial customer’s specific number of solid waste containers, the size of container, and frequency of collection. Recycling collection is provided at no additional charge. The cost to provide recycling services is included in the solid waste rates. Recology bills customers on a monthly basis.
Size of Solid Waste Cart (gallons) 20 32 64 96
Solid Waste Container COS $11.80 $18.27 $38.05 $63.53
Recycling Container COS $16.27 $16.27 $16.27 $16.27
Organics Container COS $30.06 $30.06 $30.06 $30.06
Total Cost of Service ($/month) $58.13 $64.60 $84.38 $109.86 Less: Tax Roll Billing ($/month) ($27.50) ($27.50) ($27.50) ($27.50) Monthly Rate Billed by Recology $30.63 $37.10 $56.88 $82.36 -207-
Town of Hillsborough Section 4. Rate Design – 2023 Cost-of-Service Draft Report Solid Waste Rate Study
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Figure 4‐14. Commercial Solid Waste and Recycling Cost‐of‐Service (2023) and Monthly Rates Figure 4‐15 summarizes the monthly costs for Recology to provide organics collection services, which is billed quarterly by Recology and based on each commercial customer’sspecific number of containers, the size of container, and frequency of collection.
Figure 4‐15. Commercial Organics Cost‐of‐Service (2023) and Monthly Rates 32 64 96 1 2 3 6
1 /week $53.10 $66.88 $79.97 $131.96 $249.06 $404.91 $1,027.39 2 /week $79.57 $107.12 $133.31 $246.66 $480.86 $792.54 $2,037.52 3 /week $106.03 $147.36 $186.65 $361.35 $712.65 $1,180.18 $3,047.64 4 /week $132.50 $187.61 $239.99 $476.04 $944.45 $1,567.82 $4,057.77 5 /week $158.96 $227.85 $293.33 $590.74 $1,176.24 $1,955.45 $5,067.89 6 /week $185.43 $268.09 $346.67 $705.43 $1,408.04 $2,343.09 $6,078.02 Additional Containers
1 /week $12.73 $26.59 $39.73 $97.35 $215.47 $372.32 $998.86 2 /week $39.19 $66.83 $93.07 $212.04 $447.26 $759.96 $2,008.98 3 /week $65.66 $107.07 $146.41 $326.74 $679.05 $1,147.59 $3,019.11 4 /week $92.12 $147.31 $199.74 $441.43 $910.85 $1,535.23 $4,029.23 5 /week $118.59 $187.56 $253.08 $556.13 $1,142.64 $1,922.87 $5,039.36 6 /week $145.05 $227.80 $306.42 $670.82 $1,374.44 $2,310.50 $6,049.48 Cart Size (Gallons)
Frequency
Bin Size (Cubic Yards)
32 64 96 1 2 3 6
1 /week $26.55 $33.44 $39.99 $65.98 $124.53 $202.45 $513.70 2 /week $39.78 $53.56 $66.66 $123.33 $240.43 $396.27 $1,018.76 3 /week $53.02 $73.68 $93.33 $180.67 $356.33 $590.09 $1,523.82 4 /week $66.25 $93.80 $119.99 $238.02 $472.22 $783.91 $2,028.88 5 /week $79.48 $113.92 $146.66 $295.37 $588.12 $977.73 $2,533.95 6 /week $92.71 $134.05 $173.33 $352.72 $704.02 $1,171.54 $3,039.01 Additional Containers
1 /week $6.36 $13.29 $19.87 $48.68 $107.73 $186.16 $499.43 2 /week $19.60 $33.41 $46.53 $106.02 $223.63 $379.98 $1,004.49 3 /week $32.83 $53.54 $73.20 $163.37 $339.53 $573.80 $1,509.55 4 /week $46.06 $73.66 $99.87 $220.72 $455.42 $767.61 $2,014.62 5 /week $59.29 $93.78 $126.54 $278.06 $571.32 $961.43 $2,519.68 6 /week $72.53 $113.90 $153.21 $335.41 $687.22 $1,155.25 $3,024.74 Bin Size (Cubic Yards)
Frequency
Cart Size (Gallons)
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COST OF SERVICE AND RATE STUDY
ATTACHMENTS
A Cost-of-Service Rate Model
B Complete List of Proposed Commercial Rates (2023-2027)
HF&H CONSULTANTS, LLC
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 0 Preliminary Findings - For Discussion Purposes Only Town of Hillsborough
2023 Solid Waste Rates Study
August 8, 2022
Council Study Session
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ATTACHMENT 2
Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 1 Preliminary Findings - For Discussion Purposes Only AGENDA
Introductions
Goals for the Study Session
Background
Rate Study Process
Preliminary Findings & Recommendations
Questions & Discussion
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 2 Preliminary Findings - For Discussion Purposes Only
GOALS FOR THE STUDY SESSION
Inform Council of the rate study process and status
Present preliminary analysis to facilitate discussion Receive feedback regarding Rate Adjustments for
funding revenue shortfalls and aligning rates with the
cost-of-service
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 3 Preliminary Findings - For Discussion Purposes Only
BACKGROUND
Recology has been providing solid waste, recycling, and organic material collection and processing services to the Town since 2011 The Town is responsible for setting rates
The Town bills a portion of residential charges on the tax roll Recology is responsible for billing a portion of residential charges (quarterly) and all commercial charges (quarterly)
Recology maintains a balancing account payable to (or from) the Town at the expiration of the agreement
If actual revenue is greater than Recology’s approved compensation, in any given year, the balancing account is increased
If actual revenue is less than Recology’s approved compensation, in any given year, the balancing account is decreased
Interest is charged to the Town if the cumulative balance goes negative -214-
Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 4 Preliminary Findings - For Discussion Purposes Only A cost-of-service study was
conducted last year (for 2022
rates)
Small containers required significant
increases
The FAC recommended, and the City
Council adopted, a phase-in approach to
minimize the rate impact to customers
with small containers
Council adopted the first year of the
phase-in with direction to study the
rates again this year
2021 2022 $
Rates1 COS Rates1 Change
$/mo $/mo $/mo
Service Level
20-Gallon Cart $42.40 $55.27 $12.87
32-Gallon Cart $52.50 $61.46 $8.96
64-Gallon Cart $82.40 $80.36 ($2.04)
96-Gallon Cart $117.40 $104.65 ($12.75)
Extra Organics Cart $20.00 $25.12 $5.12
1 Includes Tax Roll Charges
2021 2022 $
Rates1 Adopted Rates1 Change
$/mo $/mo $/mo
Service Level
20-Gallon Cart¹ $42.40 $51.05 $8.65
32-Gallon Cart¹ $52.50 $59.40 $6.90
64-Gallon Cart¹ $82.40 $80.36 ($2.04)
96-Gallon Cart¹ $117.40 $104.65 ($12.75)
Extra Organics Cart $20.00 $23.42 $3.42
1 Includes Tax Roll Charges
BACKGROUND
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 5 Preliminary Findings - For Discussion Purposes Only BACKGROUND – HISTORICAL BALANCING ACCOUNT
2020
Actual
2021
Actual
2022
Estimated
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
1 $3,177,311 $3,262,909 $3,463,635 $3,568,882 $3,773,695 $3,943,268 $4,117,251 $4,282,396 2 Base Charge Revenue - Recology (res) $2,119,726 $2,168,990 $2,277,439 $2,379,924 $2,487,021 $2,586,502 $2,689,962 3 Base Charge Revenue - Tax Roll (res) $1,169,100 $1,228,545 $1,320,190 $1,382,818 $1,445,045 $1,506,380 $1,566,635 4 Subtotal - Residential Revenue $3,288,826 $3,397,535 $3,597,629 $3,762,742 $3,932,066 $4,092,882 $4,256,597 5 Base Charge Revenue - Recology (comm) $94,380 $94,380 $99,099 $103,558 $108,218 $112,547 $117,049 6 Subtotal - Base Charge Revenue $3,383,206 $3,491,915 $3,696,728 $3,866,301 $4,040,284 $4,205,429 $4,373,646 7 Sch Q "Extras" Rev. (i.e., backyard srvc) $73,452 $76,967 $76,967 $76,967 $76,967 $76,967 $76,967 8 Total Revenue (after rate adjustments) $3,262,909 $3,463,635 $3,568,882 $3,773,695 $3,943,268 $4,117,251 $4,282,396 $4,450,613 Expenses
9 Recology Collection Costs $2,136,851 $2,085,460 $2,119,350 $2,226,580 $2,337,909 $2,431,425 $2,528,682 $2,629,829 10 Disposal & Processing Fees $1,065,722 $1,160,646 $1,193,348 $1,235,248 $1,297,010 $1,348,891 $1,402,846 $1,458,960 11 Agency Franchise & Other Fees $296,867 $315,051 $323,500 $339,572 $354,809 $370,775 $385,559 $400,982 12 Total Expenses $3,499,440 $3,561,157 $3,636,199 $3,801,399 $3,989,728 $4,151,091 $4,317,088 $4,489,771 13 Surplus / (Shortfall) After Rate Increase ($236,531) ($97,522) ($67,318) ($27,704) ($46,460) ($33,840) ($34,692) ($39,159) 14 Balancing Acct. (Proj. Year-End Balance) $580,605 $483,083 $415,765 $388,060 $341,600 $307,761 $273,068 $233,910 Estimated Revenue (Before Rate Increase)
COLLECTION COST PROJECTION
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 6 Preliminary Findings - For Discussion Purposes Only
CURRENT RATES - RESIDENTIAL
Two components
1. Tax Roll. All parcels charged $330.00 per year on property tax bills ($27.50/month), plus
2.Container Charge (Recology Bills). Monthly charge based on the size of solid waste container
Billed Billed Total
on Tax Roll by Recology Charge
$/mo $/mo $/mo
Solid Waste Subscription
20-Gallon Cart $27.50 $23.55 $51.05
32-Gallon Cart $27.50 $31.90 $59.40
64-Gallon Cart $27.50 $52.86 $80.36
96-Gallon Cart $27.50 $77.15 $104.65
Extra Organics Cart (Green) $0.00 $23.42 $23.42
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 7 Preliminary Findings - For Discussion Purposes Only
CURRENT RATES - COMMERCIAL
Monthly bill is based on the size and frequency of Solid Waste and Organics weekly collection
32 64 96 1 2 3 6
1 /week $49.85 $54.33 $66.28 $127.62 $242.32 $386.48 $966.29 2 /week $80.33 $104.22 $132.78 $236.27 $465.67 $754.00 $1,913.62 3 /week $106.33 $142.17 $185.01 $344.93 $689.02 $1,121.52 $2,860.95 4 /week $132.33 $180.11 $237.23 $453.58 $912.38 $1,489.03 $3,808.28 5 /week $158.32 $218.06 $289.46 $562.24 $1,135.73 $1,856.55 $4,755.61 6 /week $184.32 $256.00 $341.69 $670.89 $1,359.09 $2,224.07 $5,702.94 CURRENT Monthly Commercial Solid Waste Rates
Bin Size (Cubic Yards)
Frequency
Cart Size (Gallons)
32 64 96 1 2 3 6
1 /week $24.92 $27.16 $33.14 $63.81 $121.16 $193.24 $483.15 2 /week $40.16 $52.11 $66.39 $118.14 $232.84 $377.00 $956.81 3 /week $53.16 $71.08 $92.50 $172.46 $344.51 $560.76 $1,430.47 4 /week $66.16 $90.06 $118.62 $226.79 $456.19 $744.52 $1,904.14 5 /week $79.16 $109.03 $144.73 $281.12 $567.87 $928.27 $2,377.80 6 /week $92.16 $128.00 $170.84 $335.45 $679.54 $1,112.03 $2,851.47 CURRENT Monthly Commercial Organics Rates
Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 8 Preliminary Findings - For Discussion Purposes Only
STEPS OF COST-OF-SERVICE RATE STUDY
Step 1: Determine revenue requirement –What are the
net costs that need to be covered by rates?
Step 2: Determine rate revenue at current rates
Step 3: Develop funding strategy for bridging any
revenue shortfalls
Rate increases, use of balancing account, or any other alternative funding sources
Step 4: Design rates to generate the necessary revenue from rates
8 -219-
Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 9 Preliminary Findings - For Discussion Purposes Only STEPS 1&2: REVENUE REQUIREMENT AND CURRENT REVENUE
Recology costs are increasing 5.1% for 2023
Inflationary increases allowed in the agreement
2024-2027 Projections: 5.0% increase for 2024 and 4.0% increases for 2025-2027.
Disposal and Processing costs at the Shoreway
Environmental Center are increasing 3.2%.
Solid waste tip fee increasing 6.2% eff. 1/1/2023
Organic material tip fee increasing 2.1% eff. 1/1/2023 2024-2027 Projects: 5.0% increase for 2024 and 4.0% increases for 2025-2027.
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 10 Preliminary Findings - For Discussion Purposes Only Recommend stabilizing balancing
account after years of drawing it
down and potential cost
increases
Potential Tipping Fee Increases.
SBWMA agreements for Shoreway
Environmental Center operator and
organic material processor will expire
in the next two to three years.
Impact on tipping fees is difficult to
predict.
Organic Products Procurement.
SB1383 requires each jurisdiction to
procure products generated from
recovered organic waste. Cost of
compliance still not known.
STEPS 1&2: REVENUE REQUIREMENT AND CURRENT REVENUE
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
2020
Actual
2021
Actual
2022
Estimated
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Millions
Franchise Fees
Tip Fees
Collection Costs
Revenue at Current Rates
Balancing Account - Without Rate Adjs
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 11 Preliminary Findings - For Discussion Purposes Only STEP 3: PROPOSED FUNDING STRATEGY
Proposed rate adjustments results in a positive balancing account: ~$234,000 by year-end 2027 2022
Estimated
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
1 Total Revenue (after rate adjustments) $3,568,882 $3,773,695 $3,943,268 $4,117,251 $4,282,396 $4,450,613 2 Revenue Increase 5.0% 4.5% 4.5% 4.0% 4.0%
Expenses
3 Recology Collection Costs $2,142,411 $2,226,580 $2,337,909 $2,431,425 $2,528,682 $2,629,829 4 Disposal & Processing Fees $1,193,348 $1,235,248 $1,297,010 $1,348,891 $1,402,846 $1,458,960 5 Agency Franchise & Other Fees $323,500 $339,572 $354,809 $370,775 $385,559 $400,982 6 Total Expenses $3,659,259 $3,801,399 $3,989,728 $4,151,091 $4,317,088 $4,489,771 annual % change 3.9% 5.0% 4.0% 4.0% 4.0%
7 Surplus / (Shortfall) After Rate Increase ($90,379) ($27,704) ($46,460) ($33,840) ($34,692) ($39,159) 8 Balancing Acct. (Proj. Year-End Balance) $415,765 $388,060 $341,600 $307,761 $273,068 $233,910
COLLECTION COST PROJECTION
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 12 Preliminary Findings - For Discussion Purposes Only STEP 4: DESIGN RATES
Design 2023 rates to generate the necessary rate revenue Phase 1 of residential small cart rate re-alignment adopted in 2022
Finalize phase-in of small cart rate increases so all service levels pay their respective cost-of-service
Annual uniform percent increases thereafter
12 “...fees and charges must be proportional to the cost of providing the service attributable to the parcel…” --Proposition 218 -223-
Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 13 Preliminary Findings - For Discussion Purposes Only
RECOMMENDED RATE ADJUSTMENTS
Billed on
Tax Roll
Billed by
Recology
Combined
Monthly Bill
Current COS Rates $
Rates 2023 Change 2024 2025 2026 2027
$/mo $/mo 5.0% 4.5% 4.5% 4.0%
Residential
Flat fee per Parcel $27.50 $28.88 $1.38 $30.18 $31.54 $32.80 $34.11 20-Gallon Cart $23.55 $29.25 $5.70 $30.57 $31.95 $33.23 $34.56 32-Gallon Cart $31.90 $35.72 $3.82 $37.33 $39.01 $40.57 $42.19 64-Gallon Cart $52.86 $55.50 $2.64 $58.00 $60.61 $63.03 $65.55 96-Gallon Cart $77.15 $80.98 $3.83 $84.62 $88.43 $91.97 $95.65 Extra GW Cart $23.42 $24.77 $1.35 $25.88 $27.04 $28.12 $29.24 Current COS Rates $
Rates 2023 Change 2024 2025 2026 2027
$/mo $/mo 5.0% 4.5% 4.5% 4.0%
Residential
20-Gallon Cart $51.05 $58.13 $7.08 $60.75 $63.49 $66.03 $68.67 32-Gallon Cart $59.40 $64.60 $5.20 $67.51 $70.55 $73.37 $76.30 64-Gallon Cart $80.36 $84.38 $4.02 $88.18 $92.15 $95.83 $99.66 96-Gallon Cart $104.65 $109.86 $5.21 $114.80 $119.97 $124.77 $129.76 Extra GW Cart $23.42 $24.77 $1.35 $25.88 $27.04 $28.12 $29.24 -224-
Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 14 Preliminary Findings - For Discussion Purposes Only RECOMMENDED RATE ADJUSTMENTS – SOLIDWASTE
• Average increase = 5%
• Increases range from 4%-6%
32 64 96 1 2 3 6
1 /week $49.85 $54.33 $66.28 $127.62 $242.32 $386.48 $966.29 2 /week $80.33 $104.22 $132.78 $236.27 $465.67 $754.00 $1,913.62 3 /week $106.33 $142.17 $185.01 $344.93 $689.02 $1,121.52 $2,860.95 4 /week $132.33 $180.11 $237.23 $453.58 $912.38 $1,489.03 $3,808.28 5 /week $158.32 $218.06 $289.46 $562.24 $1,135.73 $1,856.55 $4,755.61 6 /week $184.32 $256.00 $341.69 $670.89 $1,359.09 $2,224.07 $5,702.94 Additional Containers
1 /week $7.77 $12.26 $24.29 $91.31 $207.02 $352.20 $936.06 2 /week $38.26 $104.22 $132.78 $226.90 $456.30 $744.63 $1,904.25 3 /week $64.26 $142.17 $185.01 $326.19 $670.29 $1,102.78 $2,842.21 4 /week $90.25 $180.11 $237.23 $425.48 $884.28 $1,460.93 $3,780.18 5 /week $116.25 $218.06 $289.46 $524.76 $1,098.26 $1,819.08 $4,718.14 6 /week $142.25 $256.00 $341.69 $624.05 $1,312.25 $2,177.23 $5,656.10 CURRENT Monthly Commercial Solid Waste Rates
Bin Size (Cubic Yards)
Frequency
Cart Size (Gallons)
32 64 96 1 2 3 6
1 /week $53.10 $66.88 $79.97 $131.96 $249.06 $404.91 $1,027.39 2 /week $79.57 $107.12 $133.31 $246.66 $480.86 $792.54 $2,037.52 3 /week $106.03 $147.36 $186.65 $361.35 $712.65 $1,180.18 $3,047.64 4 /week $132.50 $187.61 $239.99 $476.04 $944.45 $1,567.82 $4,057.77 5 /week $158.96 $227.85 $293.33 $590.74 $1,176.24 $1,955.45 $5,067.89 6 /week $185.43 $268.09 $346.67 $705.43 $1,408.04 $2,343.09 $6,078.02 Additional Containers
1 /week $12.73 $26.59 $39.73 $97.35 $215.47 $372.32 $998.86 2 /week $39.19 $66.83 $93.07 $212.04 $447.26 $759.96 $2,008.98 3 /week $65.66 $107.07 $146.41 $326.74 $679.05 $1,147.59 $3,019.11 4 /week $92.12 $147.31 $199.74 $441.43 $910.85 $1,535.23 $4,029.23 5 /week $118.59 $187.56 $253.08 $556.13 $1,142.64 $1,922.87 $5,039.36 6 /week $145.05 $227.80 $306.42 $670.82 $1,374.44 $2,310.50 $6,049.48 Cart Size (Gallons)
PROPOSED Monthly Commercial Solid Waste Rates (eff. 1/1/2023) Frequency
Bin Size (Cubic Yards)
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 15 Preliminary Findings - For Discussion Purposes Only
RECOMMENDED RATE ADJUSTMENTS - ORGANICS
32 64 96 1 2 3 6
1 /week $24.92 $27.16 $33.14 $63.81 $121.16 $193.24 $483.15 2 /week $40.16 $52.11 $66.39 $118.14 $232.84 $377.00 $956.81 3 /week $53.16 $71.08 $92.50 $172.46 $344.51 $560.76 $1,430.47 4 /week $66.16 $90.06 $118.62 $226.79 $456.19 $744.52 $1,904.14 5 /week $79.16 $109.03 $144.73 $281.12 $567.87 $928.27 $2,377.80 6 /week $92.16 $128.00 $170.84 $335.45 $679.54 $1,112.03 $2,851.47 Additional Containers
1 /week $3.88 $6.13 $12.14 $45.66 $103.51 $176.10 $468.03 2 /week $19.13 $52.11 $66.39 $113.45 $228.15 $372.32 $952.13 3 /week $32.13 $71.08 $92.50 $163.10 $335.14 $551.39 $1,421.11 4 /week $45.13 $90.06 $118.62 $212.74 $442.14 $730.46 $1,890.09 5 /week $58.13 $109.03 $144.73 $262.38 $549.13 $909.54 $2,359.07 6 /week $71.13 $128.00 $170.84 $312.03 $656.12 $1,088.61 $2,828.05 CURRENT Monthly Commercial Organics Rates
Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency • Average increase = 5%
• Increases range from 4%-6%
32 64 96 1 2 3 6
1 /week $26.55 $33.44 $39.99 $65.98 $124.53 $202.45 $513.70 2 /week $39.78 $53.56 $66.66 $123.33 $240.43 $396.27 $1,018.76 3 /week $53.02 $73.68 $93.33 $180.67 $356.33 $590.09 $1,523.82 4 /week $66.25 $93.80 $119.99 $238.02 $472.22 $783.91 $2,028.88 5 /week $79.48 $113.92 $146.66 $295.37 $588.12 $977.73 $2,533.95 6 /week $92.71 $134.05 $173.33 $352.72 $704.02 $1,171.54 $3,039.01 Additional Containers
1 /week $6.36 $13.29 $19.87 $48.68 $107.73 $186.16 $499.43 2 /week $19.60 $33.41 $46.53 $106.02 $223.63 $379.98 $1,004.49 3 /week $32.83 $53.54 $73.20 $163.37 $339.53 $573.80 $1,509.55 4 /week $46.06 $73.66 $99.87 $220.72 $455.42 $767.61 $2,014.62 5 /week $59.29 $93.78 $126.54 $278.06 $571.32 $961.43 $2,519.68 6 /week $72.53 $113.90 $153.21 $335.41 $687.22 $1,155.25 $3,024.74 Frequency
PROPOSED Monthly Commercial Organics Rates (eff. 1/1/2023) Cart Size (Gallons) Bin Size (Cubic Yards)
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Town of Hillsborough | Council Study Session 2023 Solid Waste Rate Cost-of-Service Study | August 8, 2022 HF&H Consultants, LLC 16 Preliminary Findings - For Discussion Purposes Only
NEXT STEPS
Questions/Additional Discussion
Proposition 218 allows up to five-years of rate
adjustments
2023-2027 Rate Adjustments to Present to Council
All five years: 5.0%, 4.5%, 4.5%, 4.0%, 4.0%
16 -227-
NOTICE OF PUBLIC HEARING ON PROPOSED ADJUSTMENTS TO
TOWN OF HILLSBOROUGH WATER AND SOLID WASTE RATES COMMENCING 2023 The Town of Hillsborough invites the public to attend a public hearing to be held on Monday, November 14, 2022, at 6:00 p.m. to consider adoption of a five-year schedule of water and solid waste rates, to be effective for services provided on or after January 1, 2023. The purpose of the public hearing is to consider all oral testimony and written protests to, and the adoption of, the proposed water rates and solid waste rates. If adopted, the new rates will go into effect for services provided on and after January 1, 2023. The public hearing is currently planned to be held in the City Council Chambers located at 1600 Floribunda Ave., Hillsborough, CA 94010. The City Council meeting will be conducted pursuant to the provisions of Assembly Bill 361 and Government Code Section 54953(e) (and without compliance with section 54953(b)(3)) related to conducting public meetings during the COVID-19 pandemic. The City Council, staff and members of the public may participate in the meeting virtually via Zoom Video Conference or in person at Town Hall. To participate in the meeting via Zoom Video Conference:
Join Zoom Meeting
https://us06web.zoom.us/j/82859455523?pwd=QUI5bkxFZW5EM3c2UnJ6UEV5dzV5dz09 Meeting ID: 828 5945 5523
Passcode: 860403
Should the Town determine that, due to a state of emergency or public health concerns, the meeting at which the hearing will be held will be entirely virtual in accordance with AB 361 or other applicable law, information to that effect will be posted on the Town’s website as soon as available.
This Notice is being mailed to the Town of Hillsborough’s property owners who receive solid waste, recycling, and organics collection service, and/or water service from the Town, as well as any tenants that are directly liable for payment of fees for such services. This notice describes the reasons for the rate increases and adjustments and the protest procedure that is available to property owners.
The proposed rate adjustments are based on analyses by an independent rate consultant that demonstrated the proportional cost to the Town of providing these services to each property it serves. The proposed rates were developed with input from the Town’s Financial Advisory Committee, a group of community representatives that provides input to the Town on financial matters. Copies the rate study reports are available online at www.hillsborough.net/SolidWasteRates and www.hillsborough.net/WaterRates and are on file with the City Clerk.
Public Hearing and Protests
Any record owner of a parcel upon which the water rates and/or solid waste rates are proposed to be imposed and any tenant directly liable for the payment of water or solid waste rates (i.e., a customer of record who is not a property owner) may submit a written protest to the proposed rate adjustments; however, only one protest for water rates and one protest for solid waste rates will be counted per identified parcel. Any written protest must:
(1) state that the identified property owner or tenant is opposed to the proposed water rate adjustments and increases or solid waste rate adjustments and increases; (2) provide the location of the identified parcel (by street address, assessor’s parcel number, or customer account number); and (3) include the name and signature of the property owner or tenant submitting the protest. Written protests may be submitted to the City Clerk by mail or in person at 1600 Floribunda Avenue Hillsborough, CA 94010, or during the public hearing (date, time, and location noted above) by placing the protest in the white metal drop-box located in the Town Hall parking lot prior to the close of the public hearing. The City Clerk must receive written protests delivered by mail no later than 4:00 p.m. on the date of the Public Hearing, or if placed in the drop box, prior to the close of the public comment portion of -228-
ATTACHMENT 3
the public hearing. Any protest submitted via e-mail or other electronic means will not be accepted as a valid written protest. Please indicate on the outside of any envelope mailed to the Town Attn: Rate Hearing.
The City Council will accept and consider all written protests and will hear and consider all oral comments to the proposed rate adjustments and increases at the public hearing. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the public hearing, the City Council will consider adoption of the proposed rate increases as described in this notice. If written protests against the proposed rates are not presented by a majority of the property owners or tenants of the identified parcels subject to the proposed rate increases, City Council will be authorized to adopt the rate increases.
The documents supporting the rate adjustments and increases are available for review online at www.hillsborough.net/SolidWasteRates and www.hillsborough.net/WaterRates and at the City Clerk’s office between 8:00 a.m. and 5:00 p.m., Monday through Thursday, and between 8:00 a.m. and 12:00 p.m. on Fridays.
Please note that there is a 120-day statute of limitations for challenging all water rates should the proposed adjustments be adopted.
WATER RATES
Background Information
The Town operates and maintains a potable water distribution system to serve its residents and water users. It is a complex system with varying topography and 19 separate but interconnected pressure zones. The infrastructure network includes 108 miles of water mains, 18 water tanks, 14 water pump stations and over 7,500 various assets, such as water meters, fire hydrants, and valves. The Town purchases its water from the San Francisco Public Utilities Commission (SFPUC). The Town pumps and delivers water to approximately 4,270 customers, nearly all of whom are single-family residential customers.
The Town is committed to providing the highest quality water at the lowest possible rates for our customers. To meet this commitment, the Town engaged HF&H Consultants, LLC (HF&H) to perform an independent, cost-ofservice water rate study and evaluate the infrastructure, programs, and operations and maintenance costs of the Town’s water services and the rates necessary to recover the costs of those services for the next five years. The Town’s rate study report demonstrates what it costs the Town to provide water service and the appropriate rates to fairly and appropriately allocate the costs of providing water to our customers. The cost of providing water includes not only the water we purchase, but the infrastructure that treats and delivers the water, as well as the conservation, efficiency, and demand management programs to ensure that there is safe and reliable water to meet the demands of all of our water customers twenty-four hours a day, seven days a week.
Rate Adjustments Needed to Fund Future Operating Needs
Based on HF&H’s evaluation, it has been determined that rate adjustments and increases are necessary for the Town’s water service charges to enable the Town to:
• recover current and long-term projected costs of operating and maintaining the water system, including significant increases in the costs of the wholesale water the Town purchases from the SFPUC;
• fund capital infrastructure improvements needed to repair and update the Town’s aging water system;
• maintain the operational and financial stability of the water utility; • comply with State mandated drinking water regulatory requirements; • meet and comply with annual debt service requirements; and -229-
• avoid operational deficits and depletion of reserves.
Proposed Water Rates
a) Residential and Non-Residential Rate Structures.
The proposed rates are calculated to recover the costs of providing water services and to proportionately allocate those costs on a parcel basis among the various customer categories. The water rate structure has two customer categories—Residential and Non-Residential— and two components—a Service Charge and a Volume Charge.
The proposed Service Charge is a fixed bi-monthly charge calculated to recover a portion of the Town’s fixed costs of operating and maintaining the water system and delivering water. The proposed rates for the Service Charge are established on the basis of the size of the meter (in inches) serving a property to recover the incremental costs of sizing facilities to sufficiently deliver water to properties served by larger meters. The Volume Charge is a variable charge imposed per unit of delivered water with one unit equal to one hundred cubic feet (HCF), or 748 gallons, and is calculated to recover a portion of the Town’s fixed costs and its variable costs of providing water service.
The Town has determined that the proposed water rates set forth in Table 1 and Table 2 below would not exceed the estimated reasonable proportional cost of providing service to each parcel at each level of service. The below rates are proposed to take effect January 1 of each year.
Table 1. Current and Proposed Service Charge Rates
Table 2. Current and Proposed Volume Charge Rates
b) Rate Adjustments During Water Shortages.
The proposed Revenue Stabilization Factors would be applied to the Volume Charge rates and implemented during locally declared water shortages, state mandated reductions in the level of potable water usage, or other natural disaster or event that requires reductions in water usage. The City Council may implement the Revenue -230-
Stabilization Factors as necessary, depending on the level of potable water use cutbacks required, to ensure that the water utility recovers sufficient revenues to meet its expenditures and debt obligations. The rates for the Volume Charge would be multiplied by the applicable Revenue Stabilization Factor to derive the Volume Charge rates to be in effect during the water shortage for each Customer Class.
The maximum Revenue Stabilization Factors are set forth in Table 3 below. The actual Revenue Stabilization Factor to be applied at any time may be lower than the maximum Revenue Stabilization Factor set forth below, and will depend on the level of reduction in water usage necessary at such time, and will be calculated in accordance with the methodology set forth in the rate study report, provided that the actual Revenue Stabilization Factor will not exceed the maximum Revenue Stabilization Factors set forth in Table 3.
Table 4 includes an example of how the Rates Stabilization Factors would impact the Volume Charge, if applied at the maximum amount to the 2023 rates.
Table 3. Maximum Revenue Stabilization Factors
Table 4. Example of 2023 Rates with Maximum Revenue Stabilization Factors *Rounding may occur in the rates derived from the multiplication of the Revenue Stabilization Factors to the applicable 2023 rates for each incremental percentage of reduction in water usage. c) Pass-Through Adjustment
The proposed rates for the Volume Charge are based on the SFPUC projected increases in its wholesale water rates on July 1 of each year from the current cost of $4.75 per HCF 2022, $5.28 per HCF in 2023, $5.28 per HCF in 2024, $5.32 per HCF in 2025, and $5.32 per HCF in 2026. Pursuant to California Government Code Section 53756, the Town is proposing to pass through any additional increases in the SFPUC wholesale water rates that are above or below these projected SFPUC wholesale water rates. A pass through will be implemented by increasing or decreasing the Town’s proposed Volume Charge rates by the amount of the SFPUC wholesale water rate increase or decrease in cents per HCF in excess or below the projected SFPUC wholesale rate. For example, if the SFPUC raises it wholesale water rate to $5.38 per CCF on July 1, 2023 (instead of the projected $5.28 per HCF), the Town may increase its water usage charge by an additional $0.10 per HCF on or after July 1, 2023.
Similarly, the Town is proposing to pass through any savings in the SFPUC wholesale water rates that are below the projected wholesale water rates.
Water Emergency Shortage Stage Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Reduced Level of Consumption 10% 20% 30% 40% 50% >50%
Residential Revenue Stabilization Factors 1.050 1.113 1.194 1.302 1.452 1.552 Non-Residential Revenue Stabilization Factors 1.059 1.135 1.237 1.381 1.603 1.764 Proposed Rates with Revenue Stabilization Factors Applicable to % Reductions 2023 Rates Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Residential
Tier 1 $6.39 $6.71 $7.11 $7.63 $8.32 $9.27 $9.91
Tier 2 $8.47 $8.90 $9.43 $10.11 $11.03 $12.30 $13.14
Tier 3 $13.61 $14.30 $15.16 $16.26 $17.72 $19.76 $21.12 Tier 4 $18.40 $19.33 $20.49 $21.97 $23.95 $26.71 $28.55 Non-Residential $8.99 $9.52 $10.20 $11.12 $12.42 $14.41 $15.86 -231-
Prior to implementing a pass-through increase of the SFPUC wholesale water rates, the Town will send written notification to all customers at least 30 days prior to the effective date.
SOLID WASTE RATES
Solid Waste Services Overview
The Town is a member of the South Bayside Waste Management Authority (SBWMA). Under the SBWMA Joint Powers Agreement, each member agency (including the Town) sets its own solid waste rates for residential and commercial customers. Each of the eleven SBWMA member agencies has a franchise agreement with Recology of San Mateo County (Recology)for residential and commercial solid waste, recycling, and organic collections.
The current franchise agreement runs from January 1, 2021, through December 31, 2035. In addition, a contract with South Bay Recycling provides for operations at the Shoreway Environmental Center, which is owned by the SBWMA. The Shoreway facility serves as a regional solid waste and recycling facility for the receipt, handling and transfer of solid waste, recyclable, and organic materials. Each member of the SBWMA is responsible for establishing the rates in their respective agency. Within Hillsborough, Recology is responsible for the billing of solid waste services at the rates prescribed by City Council.
Residential customers’ services include weekly curbside collection of solid waste, recycling, and organics, two on-call bulky item curbside pickups per year, weekly curbside collection of cell phones, batteries, used motor oil and oil filters, curbside holiday tree pickup, and two free community drop off events.
Commercial customers’ services include collection of solid waste, recycling, and organics bins of up to six times per week by subscription.
Other services include abandoned waste/illegal dumping collection throughout the Town, when necessary, annual confidential document destruction event at Town Hall, and collection at the three annual Town events.
Rate Adjustments Needed to Fund Future Operating Needs
Hillsborough’s residents were very successful in adapting to the way garbage and recycling are collected diverting much of its waste to their recycling and/or organics carts. As a result, residents have been able to reduce the size of their black solid waste carts. Since the costs of collecting the recyclable and organic materials are rolled into the cost of the black cart, the current pricing model or rate structure no longer works and will prove unsustainable to continue paying for the collection, processing, and disposal costs at current rates. The current rates do not cover the costs of the current services.
Accordingly, rate increases and adjustments are needed primarily for the following reasons:
1. Aligning the rates (based on size of cart) with the projected cost-of-service: Adjustments to rates are necessary to reflect the current cost of service based on the level of service provided., including for the reasons described in the prior paragraph
2. Covering the projected costs for implementing Senate Bill 1383 Reducing Short-Lived Climate Pollutants in California. SB 1383 passed in 2016 as part of California’s larger strategy to combat climate change. The law was designed to reduce global warming super pollutants like methane, which is up to 84 times more potent than carbon dioxide. Landfills are one of the largest producers of methane in the state. When organic material breaks down in the landfill methane is generated. There will be a move away from landfilling -232-
organic waste (like food, paper, and yard waste). The Town is partnering with the SBWMA, Recology, and San Mateo County to implement the SB 1383 requirements. The cost is for compliance monitoring and reporting services for elimination of food waste in solid waste collection.
3. Covering the projected costs for franchise services and pass-thru tipping fees. The Recology franchise agreement increases based on contractually agreed upon indices while the disposal and processing fees (tip fees) are based on separate contracts for these services.
Proposed Solid Waste Rates
The Town charges solid waste rates, based on the size and number of bins or carts provided to the property, and the frequency of collection. Residential service includes weekly collection of solid waste, recycling, and organics carts. A flat fee per parcel is billed annually on the property tax roll (currently $330 per year). The monthly rates are billed quarterly to each customer by Recology. Each resident receives the same size recycling and organics cart as part of their solid waste cart charge. Commercial customers are billed quarterly by Recology for weekly collection of solid waste and organics, based on the size and number of solid waste and organics bins or carts.
Like residential customers, recycling collection service is included in the solid waste rate.
The Town has determined that the proposed total solid waste rates set forth in Table 1, Tables 3-7, and Tables 9- 13 below would not exceed the estimated reasonable proportional cost of providing service to each parcel at each level of service.
Table 1. Residential Current and Proposed Monthly Rates 1 Billed annually (Current = $330/year; 2023 Proposed = $346.56/year, etc.) 2 Billed quarterly by Recology based on solid waste cart size. Rates include weekly service of solid waste container, recycling container, and organics container
MONTHLY RATES Current Proposed $
Rates eff. 1/1/2023 Change 1/1/2024 1/1/2025 1/1/2026 1/1/2027 Flat fee per Parcel $27.50 $28.88 $1.38 $30.32 $31.68 $33.11 $34.60 Service Level2
20-Gallon Cart $23.55 $29.25 $5.70 $30.57 $31.95 $33.23 $34.56 32-Gallon Cart $31.90 $35.72 $3.82 $37.33 $39.01 $40.57 $42.19 64-Gallon Cart $52.86 $55.50 $2.64 $58.00 $60.61 $63.03 $65.55 96-Gallon Cart $77.15 $80.98 $3.83 $84.62 $88.43 $91.97 $95.65 Extra Organics $23.42 $24.77 $1.35 $25.88 $27.04 $28.12 $29.24 Proposed
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Table 2. Current Monthly Commercial Solid Waste Rates
1 Collection rates include solid waste and recycling services.
Table 3. Proposed Monthly Commercial Solid Waste Rates (effective 1/1/2023) 1 Collection rates include solid waste and recycling services. 32 64 96 1 2 3 6
1 /week $49.85 $54.33 $66.28 $127.62 $242.32 $386.48 $966.29 2 /week $80.33 $104.22 $132.78 $236.27 $465.67 $754.00 $1,913.62 3 /week $106.33 $142.17 $185.01 $344.93 $689.02 $1,121.52 $2,860.95 4 /week $132.33 $180.11 $237.23 $453.58 $912.38 $1,489.03 $3,808.28 5 /week $158.32 $218.06 $289.46 $562.24 $1,135.73 $1,856.55 $4,755.61 6 /week $184.32 $256.00 $341.69 $670.89 $1,359.09 $2,224.07 $5,702.94 Additional Containers
1 /week $7.77 $12.26 $24.29 $91.31 $207.02 $352.20 $936.06 2 /week $38.26 $104.22 $132.78 $226.90 $456.30 $744.63 $1,904.25 3 /week $64.26 $142.17 $185.01 $326.19 $670.29 $1,102.78 $2,842.21 4 /week $90.25 $180.11 $237.23 $425.48 $884.28 $1,460.93 $3,780.18 5 /week $116.25 $218.06 $289.46 $524.76 $1,098.26 $1,819.08 $4,718.14 6 /week $142.25 $256.00 $341.69 $624.05 $1,312.25 $2,177.23 $5,656.10 Bin Size (Cubic Yards)
Frequency
Cart Size (Gallons)
32 64 96 1 2 3 6
1 /week $53.10 $66.88 $79.97 $131.96 $249.06 $404.91 $1,027.39 2 /week $79.57 $107.12 $133.31 $246.66 $480.86 $792.54 $2,037.52 3 /week $106.03 $147.36 $186.65 $361.35 $712.65 $1,180.18 $3,047.64 4 /week $132.50 $187.61 $239.99 $476.04 $944.45 $1,567.82 $4,057.77 5 /week $158.96 $227.85 $293.33 $590.74 $1,176.24 $1,955.45 $5,067.89 6 /week $185.43 $268.09 $346.67 $705.43 $1,408.04 $2,343.09 $6,078.02 Additional Containers
1 /week $12.73 $26.59 $39.73 $97.35 $215.47 $372.32 $998.86 2 /week $39.19 $66.83 $93.07 $212.04 $447.26 $759.96 $2,008.98 3 /week $65.66 $107.07 $146.41 $326.74 $679.05 $1,147.59 $3,019.11 4 /week $92.12 $147.31 $199.74 $441.43 $910.85 $1,535.23 $4,029.23 5 /week $118.59 $187.56 $253.08 $556.13 $1,142.64 $1,922.87 $5,039.36 6 /week $145.05 $227.80 $306.42 $670.82 $1,374.44 $2,310.50 $6,049.48 Cart Size (Gallons)
Frequency
Bin Size (Cubic Yards)
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Table 4. Proposed Monthly Commercial Solid Waste Rates (effective 1/1/2024) 1 Collection rates include solid waste and recycling services.
Table 5. Proposed Monthly Commercial Solid Waste Rates (effective 1/1/2025) 1 Collection rates include solid waste and recycling services. 32 64 96 1 2 3 6
1 /week $55.49 $69.89 $83.57 $137.90 $260.27 $423.13 $1,073.63 2 /week $83.15 $111.94 $139.31 $257.76 $502.50 $828.21 $2,129.21 3 /week $110.80 $154.00 $195.05 $377.61 $744.72 $1,233.29 $3,184.79 4 /week $138.46 $196.05 $250.79 $497.47 $986.95 $1,638.37 $4,240.37 5 /week $166.12 $238.10 $306.53 $617.32 $1,229.17 $2,043.45 $5,295.95 6 /week $193.77 $280.16 $362.27 $737.17 $1,471.40 $2,448.53 $6,351.53 Additional Containers
1 /week $13.30 $27.78 $41.52 $101.73 $225.16 $389.07 $1,043.81 2 /week $40.96 $69.84 $97.26 $221.59 $467.39 $794.15 $2,099.39 3 /week $68.61 $111.89 $153.00 $341.44 $709.61 $1,199.23 $3,154.97 4 /week $96.27 $153.94 $208.73 $461.30 $951.84 $1,604.32 $4,210.55 5 /week $123.92 $196.00 $264.47 $581.15 $1,194.06 $2,009.40 $5,266.13 6 /week $151.58 $238.05 $320.21 $701.01 $1,436.29 $2,414.48 $6,321.71 Frequency
Cart Size (Gallons) Bin Size (Cubic Yards)
32 64 96 1 2 3 6
1 /week $57.99 $73.03 $87.33 $144.11 $271.98 $442.17 $1,121.94 2 /week $86.89 $116.98 $145.58 $269.35 $525.11 $865.48 $2,225.02 3 /week $115.79 $160.93 $203.83 $394.60 $778.24 $1,288.78 $3,328.10 4 /week $144.69 $204.87 $262.07 $519.85 $1,031.36 $1,712.09 $4,431.18 5 /week $173.59 $248.82 $320.32 $645.10 $1,284.49 $2,135.40 $5,534.26 6 /week $202.49 $292.76 $378.57 $770.35 $1,537.61 $2,558.71 $6,637.35 Additional Containers
1 /week $13.90 $29.03 $43.39 $106.31 $235.29 $406.58 $1,090.78 2 /week $42.80 $72.98 $101.63 $231.56 $488.42 $829.89 $2,193.86 3 /week $71.70 $116.92 $159.88 $356.81 $741.54 $1,253.20 $3,296.94 4 /week $100.60 $160.87 $218.13 $482.05 $994.67 $1,676.51 $4,400.02 5 /week $129.50 $204.82 $276.37 $607.30 $1,247.80 $2,099.82 $5,503.10 6 /week $158.40 $248.76 $334.62 $732.55 $1,500.92 $2,523.13 $6,606.19 Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
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Table 6. Proposed Monthly Commercial Solid Waste Rates (effective 1/1/2026) 1 Collection rates include solid waste and recycling services.
Table 7. Proposed Monthly Commercial Solid Waste Rates (effective 1/1/2027) 1 Collection rates include solid waste and recycling services. 32 64 96 1 2 3 6
1 /week $60.31 $75.96 $90.83 $149.87 $282.86 $459.85 $1,166.82 2 /week $90.37 $121.66 $151.40 $280.13 $546.11 $900.09 $2,314.02 3 /week $120.42 $167.36 $211.98 $410.39 $809.36 $1,340.34 $3,461.23 4 /week $150.48 $213.07 $272.56 $540.65 $1,072.62 $1,780.58 $4,608.43 5 /week $180.54 $258.77 $333.13 $670.90 $1,335.87 $2,220.82 $5,755.63 6 /week $210.59 $304.47 $393.71 $801.16 $1,599.12 $2,661.06 $6,902.84 Additional Containers
1 /week $14.45 $30.19 $45.12 $110.56 $244.71 $422.85 $1,134.41 2 /week $44.51 $75.90 $105.70 $240.82 $507.96 $863.09 $2,281.62 3 /week $74.57 $121.60 $166.28 $371.08 $771.21 $1,303.33 $3,428.82 4 /week $104.62 $167.30 $226.85 $501.34 $1,034.46 $1,743.57 $4,576.02 5 /week $134.68 $213.01 $287.43 $631.60 $1,297.71 $2,183.81 $5,723.23 6 /week $164.74 $258.71 $348.00 $761.85 $1,560.96 $2,624.05 $6,870.43 Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
32 64 96 1 2 3 6
1 /week $62.72 $78.99 $94.46 $155.87 $294.18 $478.25 $1,213.49 2 /week $93.98 $126.53 $157.46 $291.33 $567.96 $936.10 $2,406.58 3 /week $125.24 $174.06 $220.46 $426.80 $841.74 $1,393.95 $3,599.67 4 /week $156.50 $221.59 $283.46 $562.27 $1,115.52 $1,851.80 $4,792.77 5 /week $187.76 $269.12 $346.46 $697.74 $1,389.30 $2,309.65 $5,985.86 6 /week $219.02 $316.65 $409.46 $833.21 $1,663.08 $2,767.50 $7,178.95 Additional Containers
1 /week $15.03 $31.40 $46.93 $114.99 $254.49 $439.76 $1,179.79 2 /week $46.29 $78.93 $109.93 $250.45 $528.27 $897.61 $2,372.88 3 /week $77.55 $126.47 $172.93 $385.92 $802.05 $1,355.46 $3,565.97 4 /week $108.81 $174.00 $235.93 $521.39 $1,075.84 $1,813.31 $4,759.07 5 /week $140.07 $221.53 $298.92 $656.86 $1,349.62 $2,271.16 $5,952.16 6 /week $171.33 $269.06 $361.92 $792.33 $1,623.40 $2,729.01 $7,145.25 Frequency
Cart Size (Gallons) Bin Size (Cubic Yards)
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Table 8. Current Monthly Commercial Organics Rates
Table 9. Proposed Monthly Commercial Organics Rates (effective 1/1/2023) Table 10. Proposed Monthly Commercial Organics Rates (effective 1/1/2024) 32 64 96 1 2 3 6
1 /week $24.92 $27.16 $33.14 $63.81 $121.16 $193.24 $483.15 2 /week $40.16 $52.11 $66.39 $118.14 $232.84 $377.00 $956.81 3 /week $53.16 $71.08 $92.50 $172.46 $344.51 $560.76 $1,430.47 4 /week $66.16 $90.06 $118.62 $226.79 $456.19 $744.52 $1,904.14 5 /week $79.16 $109.03 $144.73 $281.12 $567.87 $928.27 $2,377.80 6 /week $92.16 $128.00 $170.84 $335.45 $679.54 $1,112.03 $2,851.47 Additional Containers
1 /week $3.88 $6.13 $12.14 $45.66 $103.51 $176.10 $468.03 2 /week $19.13 $52.11 $66.39 $113.45 $228.15 $372.32 $952.13 3 /week $32.13 $71.08 $92.50 $163.10 $335.14 $551.39 $1,421.11 4 /week $45.13 $90.06 $118.62 $212.74 $442.14 $730.46 $1,890.09 5 /week $58.13 $109.03 $144.73 $262.38 $549.13 $909.54 $2,359.07 6 /week $71.13 $128.00 $170.84 $312.03 $656.12 $1,088.61 $2,828.05 Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
32 64 96 1 2 3 6
1 /week $26.55 $33.44 $39.99 $65.98 $124.53 $202.45 $513.70 2 /week $39.78 $53.56 $66.66 $123.33 $240.43 $396.27 $1,018.76 3 /week $53.02 $73.68 $93.33 $180.67 $356.33 $590.09 $1,523.82 4 /week $66.25 $93.80 $119.99 $238.02 $472.22 $783.91 $2,028.88 5 /week $79.48 $113.92 $146.66 $295.37 $588.12 $977.73 $2,533.95 6 /week $92.71 $134.05 $173.33 $352.72 $704.02 $1,171.54 $3,039.01 Additional Containers
1 /week $6.36 $13.29 $19.87 $48.68 $107.73 $186.16 $499.43 2 /week $19.60 $33.41 $46.53 $106.02 $223.63 $379.98 $1,004.49 3 /week $32.83 $53.54 $73.20 $163.37 $339.53 $573.80 $1,509.55 4 /week $46.06 $73.66 $99.87 $220.72 $455.42 $767.61 $2,014.62 5 /week $59.29 $93.78 $126.54 $278.06 $571.32 $961.43 $2,519.68 6 /week $72.53 $113.90 $153.21 $335.41 $687.22 $1,155.25 $3,024.74 Frequency
Cart Size (Gallons) Bin Size (Cubic Yards)
32 64 96 1 2 3 6
1 /week $27.75 $34.94 $41.79 $68.95 $130.14 $211.56 $536.81 2 /week $41.57 $55.97 $69.66 $128.88 $251.25 $414.10 $1,064.60 3 /week $55.40 $77.00 $97.53 $188.81 $372.36 $616.64 $1,592.39 4 /week $69.23 $98.02 $125.39 $248.73 $493.47 $819.18 $2,120.18 5 /week $83.06 $119.05 $153.26 $308.66 $614.59 $1,021.72 $2,647.97 6 /week $96.89 $140.08 $181.13 $368.59 $735.70 $1,224.26 $3,175.76 Additional Containers
1 /week $6.65 $13.89 $20.76 $50.87 $112.58 $194.54 $521.90 2 /week $20.48 $34.92 $48.63 $110.79 $233.69 $397.08 $1,049.69 3 /week $34.31 $55.94 $76.50 $170.72 $354.81 $599.62 $1,577.48 4 /week $48.13 $76.97 $104.37 $230.65 $475.92 $802.16 $2,105.27 5 /week $61.96 $98.00 $132.24 $290.58 $597.03 $1,004.70 $2,633.06 6 /week $75.79 $119.02 $160.10 $350.50 $718.14 $1,207.24 $3,160.85 Frequency
Cart Size (Gallons) Bin Size (Cubic Yards)
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Table 11. Proposed Monthly Commercial Organics Rates (effective 1/1/2025) Table 12. Proposed Monthly Commercial Organics Rates (effective 1/1/2026) Table 13. Proposed Monthly Commercial Organics Rates (effective 1/1/2027) 32 64 96 1 2 3 6
1 /week $28.99 $36.52 $43.67 $72.05 $135.99 $221.08 $560.97 2 /week $43.44 $58.49 $72.79 $134.68 $262.55 $432.74 $1,112.51 3 /week $57.90 $80.46 $101.91 $197.30 $389.12 $644.39 $1,664.05 4 /week $72.35 $102.44 $131.04 $259.93 $515.68 $856.05 $2,215.59 5 /week $86.80 $124.41 $160.16 $322.55 $642.24 $1,067.70 $2,767.13 6 /week $101.25 $146.38 $189.28 $385.17 $768.81 $1,279.36 $3,318.67 Additional Containers
1 /week $6.95 $14.52 $21.69 $53.16 $117.65 $203.29 $545.39 2 /week $21.40 $36.49 $50.82 $115.78 $244.21 $414.95 $1,096.93 3 /week $35.85 $58.46 $79.94 $178.40 $370.77 $626.60 $1,648.47 4 /week $50.30 $80.44 $109.06 $241.03 $497.34 $838.25 $2,200.01 5 /week $64.75 $102.41 $138.19 $303.65 $623.90 $1,049.91 $2,751.55 6 /week $79.20 $124.38 $167.31 $366.28 $750.46 $1,261.56 $3,303.09 Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
32 64 96 1 2 3 6
1 /week $30.15 $37.98 $45.41 $74.94 $141.43 $229.93 $583.41 2 /week $45.18 $60.83 $75.70 $140.06 $273.06 $450.05 $1,157.01 3 /week $60.21 $83.68 $105.99 $205.19 $404.68 $670.17 $1,730.61 4 /week $75.24 $106.53 $136.28 $270.32 $536.31 $890.29 $2,304.22 5 /week $90.27 $129.39 $166.57 $335.45 $667.93 $1,110.41 $2,877.82 6 /week $105.30 $152.24 $196.85 $400.58 $799.56 $1,330.53 $3,451.42 Additional Containers
1 /week $7.23 $15.10 $22.56 $55.28 $122.35 $211.42 $567.21 2 /week $22.26 $37.95 $52.85 $120.41 $253.98 $431.54 $1,140.81 3 /week $37.28 $60.80 $83.14 $185.54 $385.60 $651.66 $1,714.41 4 /week $52.31 $83.65 $113.43 $250.67 $517.23 $871.78 $2,288.01 5 /week $67.34 $106.50 $143.71 $315.80 $648.85 $1,091.91 $2,861.61 6 /week $82.37 $129.36 $174.00 $380.93 $780.48 $1,312.03 $3,435.22 Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
32 64 96 1 2 3 6
1 /week $31.36 $39.50 $47.23 $77.93 $147.09 $239.12 $606.74 2 /week $46.99 $63.26 $78.73 $145.67 $283.98 $468.05 $1,203.29 3 /week $62.62 $87.03 $110.23 $213.40 $420.87 $696.97 $1,799.84 4 /week $78.25 $110.79 $141.73 $281.14 $557.76 $925.90 $2,396.38 5 /week $93.88 $134.56 $173.23 $348.87 $694.65 $1,154.83 $2,992.93 6 /week $109.51 $158.33 $204.73 $416.60 $831.54 $1,383.75 $3,589.48 Additional Containers
1 /week $7.52 $15.70 $23.46 $57.49 $127.25 $219.88 $589.89 2 /week $23.15 $39.47 $54.96 $125.23 $264.14 $448.81 $1,186.44 3 /week $38.77 $63.23 $86.46 $192.96 $401.03 $677.73 $1,782.99 4 /week $54.40 $87.00 $117.96 $260.70 $537.92 $906.66 $2,379.53 5 /week $70.03 $110.76 $149.46 $328.43 $674.81 $1,135.58 $2,976.08 6 /week $85.66 $134.53 $180.96 $396.16 $811.70 $1,364.51 $3,572.63 Frequency
Cart Size (Gallons) Bin Size (Cubic Yards)
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TOWN OF HILLSBOROUGH
San Mateo County
Alvin L. Royse, Mayor 1600 Floribunda Avenue
Christine Krolik, Vice Mayor Hillsborough, CA 94010
Marie Chuang, Councilmember www.hillsborough.net
Sophie Cole, Councilmember Phone 650-375-7400
Laurence M. May, Councilmember
UNAPPROVED MINUTES
MONDAY, JULY 11, 2022
6:00 PM CITY COUNCIL MEETING
Hillsborough Town Hall and Zoom Video Conference
This City Council meeting was conducted pursuant to the provisions of Assembly Bill 361 and Government Code Section 54953(e) (and without compliance with section 54953(b)(3)) related to conducting public meetings during the COVID-19 pandemic. The City Council, staff and members of the public participated in the meeting virtually via Zoom Video Conference or in person at Town Hall.
I. CALL TO ORDER
Mayor Royse called the meeting to order at 6:00 p.m.
II. ROLL CALL
Present: Chuang, Cole, Krolik, Royse (Vice Mayor Krolik arrived at 6:01 p.m.)
Absent: May
III. PLEDGE OF ALLEGIANCE
Scouts BSA Troop 42 and 4042 led the Pledge of Allegiance.
Mayor Royse announced that Item 12, the Public Hearing for Conceptual Review of the Subdivision of 85 Fagan Drive and Adjacent Vacant Lot (APN 027-330-630) into Three Parcels and Dedication of Public Right-of-Way, had been pulled from the agenda at the recommendation of staff and will be discussed at a future City Council meeting. Mayor Royse stated members of the public may provide comments during the Public Comment on non-agenda items.
IV. MINUTES: June 13, 2022
Mayor Royse opened public comment. There were no speakers. Mayor Royse closed public comment.
On motion by Councilmember Chuang, seconded by Councilmember Cole and unanimous roll call vote with Councilmember May absent, the minutes of the June 13, 2022 City Council meeting were approved as amended on page two to reflect that Councilmember May read the proclamation in recognition of June 19, 2022 as Juneteenth.
V. PRESENTATION
• PRESENTATION BY BILL CHIANG, LOCAL GOVERNMENT AFFAIRS, PG&E Bill Chiang, Local Government Affairs, PG&E, provided a presentation on the Community Wildfire Safety Program and responded to questions. Cindy Mama and Jeff Wilson, Project Managers, PG&E Gas-Strength Testing Group, provided additional information.
Public Works Director Paul Willis provided comments.
Mayor Royse stated that without objection of the City Council, Mayor’s Applause would be moved up on the agenda and heard immediately following this item.
Mayor Royse opened public comment.
Tom Kasten stated that the PG&E lines in his neighborhood are underground and inquired as to why they frequently use power with no plausible explanation, inquired about the coverage with the current placement of high-definition cameras, and inquired about how often the gas transmission pipeline near his home is tested. -239-
Unapproved Minutes – Hillsborough City Council
Monday, July 11, 2022
Noelle Langmack expressed appreciation for the presentation and inquired about testing methods and whether the pressure used could potentially damage pipes.
Josh Cooperman inquired if any Town-owned properties would be suitable sites for cameras.
Mr. Chiang, Ms. Mama and Mr. Wilson responded to questions raised during public comment.
Mayor Royse closed public comment.
Mayor Royse reiterated his announcement that Item 12, the Public Hearing for Conceptual Review of the Subdivision of 85 Fagan Drive and Adjacent Vacant Lot (APN 027-330-630) into Three Parcels and Dedication of Public Right-of-Way, was pulled from the agenda at the recommendation of staff and will be discussed at a future City Council meeting.
Following the presentation by PG&E, Council proceeded with Mayor’s Applause.
VI. PUBLIC COMMENT I
Josh Cooperman spoke regarding project plans he reviewed at Town Hall and wanted to copy in preparation for an Architecture and Design Review Board meeting but was told he was unable to due to copyright laws. Cooperman requested that the Town require architects to waive copyright for Town residents and their advisors for use at Architecture and Design Review Board meetings.
Lindsay Raike thanked Mayor Royse for the letter he sent in support of keeping the Mickelson Pool open and reiterated her request for a City Council resolution of support, or a letter redirected to the Interim CEO of Sutter Health and the Sutter Health Board of Supervisors.
Lauren Lin stated she is working to organize a march and protest of the overturning of Roe with the goal of utilizing poetry and spoken word as a vehicle for change and read a poem.
VII. ANNOUNCEMENT OF CONFLICT OF INTEREST
There were no announcements of conflict of interest.
Mayor Royse reiterated his announcement that Item 12, the Public Hearing for Conceptual Review of the Subdivision of 85 Fagan Drive and Adjacent Vacant Lot (APN 027-330-630) into Three Parcels and Dedication of Public Right-of-Way, was pulled from the agenda at the recommendation of staff and will be discussed at a future City Council meeting.
VIII. CONSENT CALENDAR
Mayor Royse read the titles of the Consent Calendar items.
There were no requests to remove an item from the Consent Calendar.
On motion by Councilmember Chuang, seconded by Councilmember Cole and unanimous on roll call vote with Councilmember May absent, the Consent Calendar was approved.
1. MONTHLY CLAIMS: JUNE 1 THROUGH JUNE 30, 2022
The monthly claims for the month of June 2022 in the amount of $4,353,109.02 were approved as submitted.
2. QUARTERLY INTEREST RATE PRODUCTS (SWAP) REPORT
The Interest Rate Products Report for the quarter ended June 30, 2022 was accepted.
3. QUARTERLY TREASURER'S REPORT FOR THE QUARTER ENDING JUNE 30, 2022 The Treasurer’s Report for the quarter ending June 30, 2022 was approved. -240-
Unapproved Minutes – Hillsborough City Council
Monday, July 11, 2022
4. RESOLUTION APPROVING THE CLASSIFICATION SPECIFICATION OF PROPERTY
OFFICER
The resolution approving the classification specification of Property Officer was adopted.
5. RECONFIRM FINDINGS AND DETERMINATIONS UNDER RESOLUTION NO. 21-87 PURSUANT TO ASSEMBLY BILL 361
A motion to reconfirm the findings and determinations made in Resolution No. 21-87 pursuant to Assembly Bill 361, with acknowledgement that the California Department of Public Health has updated the definition of “close contact” in Regulation 3205 from being within six feet of another person to sharing the same indoor space with another person for 15 minutes or more, was approved.
6. MOTION TO OPT-OUT AND AUTHORIZE THE CITY MANAGER, OR HER DESIGNEE,
TO EXECUTE AN OPT-OUT LETTER IN THE PENDING CLASS ACTION CASE OF CITY OF LONG BEACH, ET AL. V. MONSANTO COMPANY, ET AL., UNITED STATES DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA, CASE NO.: 2:16-CV03493-FMO-AS The motion to opt out and authorize the City Manager, or her designee, to execute an opt out letter in the pending class action case of City of Long Beach, et al. v. Monsanto Company, et al. United States District Court, Central District of California – Western Division Case No.: 2:16-cv-03493-FMO-AS was approved.
7. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE
A COST SHARING AGREEMENT WITH THE CITY OF BURLINGAME FOR THE PAVING OF SUMMIT DRIVE IN CONJUNCTION WITH THE BURLINGAME 2022
STREET RESURFACING PROJECT
The resolution approving and authorizing the City Manager to execute an agreement on behalf of the Town for the Cost Sharing Agreement with the City of Burlingame for paving of Summit Drive in conjunction with the Burlingame 2022 Street Resurfacing Project was adopted.
8. RESOLUTION AWARDING TO AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH EPS INC. DBA EXPRESS PLUMBING FOR THE 2022 SANITARY SEWER REHABILITATION AND REPLACEMENT PROJECT - PHASE 1C IN THE AMOUNT OF $2,832,750.00, WITH A 10% CONTINGENCY IN THE AMOUNT OF $283,275.00, FOR A TOTAL PROJECT BUDGET OF $3,116,025.00 The resolution awarding to and approving and authorizing the City Manager to execute an agreement with EPS, Inc. dba Express Plumbing for the 2022 Sanitary Sewer Rehabilitation and Replacement Project Phase 1C in the amount of $2,832,750 with a 10% contingency in the amount of $283,275.00, if needed, for a total construction budget of $3,116,025.00 was adopted.
9. RESOLUTION AWARDING TO AND APPROVING AND AUTHORIZING THE CITY
MANAGER TO EXECUTE A CONTRACT WITH R & A JANITORIAL SERVICE, LLC TO
PROVIDE JANITORIAL SERVICES FOR THE TOWN OF HILLSBOROUGH IN THE NOT-TO-EXCEED ANNUAL AMOUNT OF $82,983.76 PER YEAR FOR TWO YEARS The resolution awarding to and authorizing the City Manager to execute a contract with R & A Janitorial Service, LLC for janitorial services in the not-to-exceed annual amount of $82,983.76 per year for two years with the option of a one-year extension was adopted.
10. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE
A SECOND AMENDMENT TO THE EXISTING CONTRACT WITH WRA
ENVIRONMENTAL CONSULTANTS FOR ADDITIONAL REGULATORY PERMITTING
COMPLIANCE AND CONSTRUCTION SUPPORT SERVICES FOR THE SANDRA -241-
Unapproved Minutes – Hillsborough City Council
Monday, July 11, 2022
HAYNE STORM DRAIN REPAIR PROJECT IN THE AMOUNT OF $169,500.00, FOR A TOTAL CONTRACT AMOUNT OF $270,550.00
The resolution approving and authorizing the City Manager to execute a second amendment to the existing contract with WRA Environmental Consultants for additional regulatory permitting compliance and construction support services for the Sandra Hayne Storm Drain Repair Project in the amount of $169,500.00 and for a total contract amount of $270,550.00 was adopted.
11. RESOLUTION AUTHORIZING THE FILED APPLICATION FOR FUNDING ASSIGNED TO METROPOLITAN TRANSPORTATION COMMISSION ONE BAY AREA GRANT 3
AND COMMITTING ANY NECESSARY MATCHING FUNDS AND STATING
ASSURANCE TO COMPLETE THE PROJECT
The resolution authorizing the filed application for funding assigned to the Metropolitan Transportation Commission One Bay Area Grant 3 and committing any necessary matching funds and stating assurance to complete the project was adopted.
IX. PUBLIC HEARING
12. CONCEPTUAL REVIEW OF THE SUBDIVISION OF 85 FAGAN DRIVE AND ADJACENT VACANT LOT (APN 027-330-630) INTO THREE PARCELS AND
DEDICATION OF PUBLIC RIGHT-OF-WAY
Mayor Royse reiterated his announcement that this item was pulled from the agenda at the recommendation of staff and will be discussed at a future City Council meeting.
13. RESOLUTION AUTHORIZING PLACEMENT OF SEWER SERVICE AND STORM
DRAINAGE CHARGES, SPECIAL TAX FOR POLICE PROTECTION AND FIRE
PROTECTION AND PREVENTION, AND THE FLAT CHARGE COMPONENT OF THE GARBAGE COLLECTION FEE ON THE FISCAL YEAR 2022-23 COUNTY TAX ROLL
AND AUTHORIZING THE COUNTY TAX COLLECTOR TO COLLECT SUCH
CHARGES
Assistant Finance Director Rich Santiago provided the staff report.
Mayor Royse opened the public hearing at 7:47 p.m. There were no speakers. Mayor Royse closed the public hearing at 7:47 p.m.
On motion by Councilmember Cole, seconded by Councilmember Chuang and unanimous on roll call vote with Councilmember May absent, the resolution authorizing placement of sewer service and storm drainage charges, special tax for police protection and fire protection and prevention, and the flat charge component of the garbage collection fee on the 2022-2023 County tax roll and authorizing the County Tax Collector to collect such charges was adopted.
X. NEW BUSINESS
14. RESOLUTION ADOPTING THE 2022 SALARY SCHEDULE FOR THE TOWN OF
HILLSBOROUGH
Human Resources Manager Kristin Armbruster provided the staff report.
Mayor Royse opened public comment. There were no speakers. Mayor Royse closed public comment.
On motion by Councilmember Chuang, seconded by Councilmember Cole and unanimous on roll call vote with Councilmember May absent, the resolution adopting the 2022 Salary Schedule for the Town of Hillsborough was adopted. -242-
Unapproved Minutes – Hillsborough City Council
Monday, July 11, 2022
XI. INFORMATIONAL
15. INFORMATIONAL UPDATE ON THE TOWN’S COMMUNICATIONS WORK PLAN
RELATED TO THE HOUSING ELEMENT
Senior Management Analyst Mandy Brown provided an informational update on the Town’s communications work plan related to the Housing Element. Building & Planning Director Sarah Fleming and Housing Element Ad Hoc City Council Subcommittee Member/Vice Mayor Krolik provided additional information.
16. COMMUNICATIONS UPDATE
Senior Management Analyst Mandy Brown provided a Communications Update.
XII. PUBLIC COMMENT II
There were no public comments.
XIII. CITY COUNCIL ITEMS
Councilmember Cole reported that she was asked by the Firewise Board to join Board meetings as a City Council liaison effective in August and looked forward to participating.
Mayor Royse reported his attendance at the annual ABAG General Assembly meeting and announced an upcoming meeting of the SFO Airport/Community Roundtable Ground-Based Noise Subcommittee and an upcoming meeting of the SFO Airport/Community Roundtable.
Mayor Royse reported Kathleen Wentworth was hired by the County as the new coordinator for the Roundtable.
Mayor Royse invited Police Chief Davis to provide a brief update on recent burglaries in the Town. Chief Davis provided brief comments.
Mayor Royse stated he wrote a letter to the Mills-Peninsula Health Center regarding the proposed permanent closure of the Mickelson Therapeutic Pool and encouraged them to meet with the pool users advocacy group. Mayor Royse stated he will revisit whether the letter should be sent to a different contact.
Mayor Royse reported he and the Vice Mayor sent a letter to the County Board of Supervisors requesting consideration of suspension of the sale of fireworks anywhere in the County in periods of drought and high fire conditions. Mayor Royse stated that the County responded that they do not have jurisdiction over individual cities who allow the sale of fireworks.
Mayor Royse thanked Finance Director Jan Cooke for her service as Acting City Manager in the City Manager’s absence.
XIV. MAYOR'S APPLAUSE
This item was heard following Item V, Presentation by Bill Chiang, Local Government Affairs, PG&E.
Mayor Royse welcomed Scouts and Scoutmasters to the meeting and expressed appreciation for their work and dedication to the community. Mike Johnston, retired Scoutmaster, Troop 28, provided comments and a presentation. Justin Knowles, Scoutmaster, Troop 58, provided comments.
The Scouts and Scoutmasters posed for a photo with the City Council.
XV. ADJOURNMENT
Mayor Royse adjourned the meeting at 8:25 p.m.
-243-
-245-
TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
1 CONSENT CALENDAR
CITY COUNCIL MEETING
AUGUST 08, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: MONTHLY CLAIMS: JULY 1 THROUGH JULY 31, 2022 SUMMARY: The monthly claims for the month of July 2022 in the amount of $11,147,087.21 are submitted for approval.
FISCAL IMPACT: Claims have been expended pursuant to the approved budget.
ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS: Monthly Claims Listing
PREPARED BY: Richard Santiago, Assistant Finance Director RECOMMENDATION: Approve the monthly claims for July 2022 as submitted. -247-
TOWN OF HILLSBOROUGH
REPORT OF GOODS & SERVICES PURCHASED
DURING THE MONTH OF JULY 2022
PREPARED BY:
Alan Singh
DocuSign Envelope ID: E2712312-A300-4AFF-A4B9-41A59C1EF0BF -248-
TOWN OF HILLSBOROUGH
SUMMARY OF PURCHASES
DURING THE MONTH OF JULY 2022
GOODS & SERVICES PURCHASED $7,500,871.08
NET SALARIES & TAXES PAID 938,430.85
HEALTH BENEFIT PREMIUMS 160,796.62
BOND PAYMENTS 30,063.63
CCFD FUNDING 1,828,359.50
SAN FRANCISCO WATER PAYMENTS 688,565.53
TOTAL COST OF GOODS & SERVICES TO BE APPROVED $11,147,087.21
FINANCE DIRECTOR DATE
CITY MANAGER DATE
DocuSign Envelope ID: E2712312-A300-4AFF-A4B9-41A59C1EF0BF 8/2/2022
8/2/2022
-249-
COMPARATIVE SUMMARY
For the Month of July 2022
Jul-22 Jul-21 Jul-20
Goods & Services Purchased:
Operations 6,501,869.64 4,466,862.81 3,676,378.79
Capital 999,001.44 768,703.08 165,321.85
Net Salaries & Taxes Paid 938,430.85 888,714.48 826,665.37 Health Benefit Premiums 160,796.62 145,530.57 148,278.53 Bond Payments 30,063.63 48,513.07 48,587.95
CCFD Funding 1,828,359.50 1,713,679.00 660,690.00
San Francisco Water Payments 688,565.53 721,231.45 761,672.36 Total $11,147,087.21 $8,753,234.46 $6,287,594.85
NOTES:
Operations -
Capital -
Bond -
CCFD -
share of a lump sum payment to CalPERS for the annual required contribution (ARC).
Paying as a lump sum achieves significant savings as compared to paying in twelve equal monthly installments.
Water -
FY 22/23 contribution is based on budget/contract. July 2022 included the Town's There was an SFPUC wholesale water rate increase on July 1, 2022 to $4.75.
The decrease from the prior year is attributable to water usage.
FY 22/23 spending is consistent with FY 21/22 spending except for timing of payment to the City of San Mateo for the Clean Water Program project ($2.4 Million).
Capital project spending in July 2022 is primarily for Storm Drain A-1 Improvements and vehicle replacements for the water and street department.
FY 22/23 spending is consistent with FY 21/22 spending.
DocuSign Envelope ID: E2712312-A300-4AFF-A4B9-41A59C1EF0BF -250-
TOWN OF HILLSBOROUGH
PURCHASES MADE DURING JULY 2022
CK # VENDOR DESCRIPTION AMOUNT
10010 ALLIANT 2022-23 EMPLOYER PRACTICE LIABILITY INSURANCE 50,430.00 10011 ALLIED 100, LLC EQUIP - AED BATTERIES PD $761.25
10012 ALTA LANGUAGE SERVICES, INC JUN '22 LISTENING & SPEAKING TEST HR $66.00 10013 ARAMARK SERVICES, INC UNIFORM CLEANING SERVICE W/E 6/23/2022 $487.90 10014 AUTOMOBILI COUNTRY CLUB, LLC MAINT - AUTO DETAILING FORD #8 PD $150.00 10015 CENTRAL COUNTY FIRE DEPARTMENT JUL'22 FISCAL CONTRIBUTE/CALPERS UAAL LUMP SUM $1,819,424.00 10016 CITY OF SAN MATEO 21-22 CLEAN WATER PROGRAM PRJ PW $2,415,000.00 10017 CITY OF SOUTH SAN FRANCISCO COUNCIL OF CITIES MEETING 7/1/22 ROYSE CO $50.00 10018 CO OF SAN MATEO PUBLIC SAFETY COMM. OCT-DEC '21 MESSAGE SWITCH PD $2,918.50 10019 COMCAST 6/26/22 - 7/25/22 PD $202.60
10073 DAILY JOURNAL CORPORATION LEGAL NOTICE 6/24/22 HEARING FAGAN DR $953.10 10074 DANIEL RICHARD CHARLES REPAIR - ELECTRICAL WIRING TARTAN/BARROILET PIT PW $1,388.00 10075 EPS, INC. REPAIR - TOILET FIRE STATION #33 PW $875.00 10076 FORENSIC LOGIC, LLC SOFTWARE - INVESTIGATIVE SEARCH 7/1/22-6/30/23 PD $3,185.00 10077 FREDCO MARKETING PRINT - DOOR TAGS WATER CONSERVE PW $651.78 10078 GLENN BERKHEIMER JUL '22 LABOR RELATIONS HR $1,700.00 10079 HIP HOUSING 2022-2023 HOME SHARE GRANT CM $2,500.00 10080 INVISIO COMMUNICATIONS, INC EQUIP - HEADSET EAR PIECE SWAT STAFF PD $20,926.50 10081 JOANNE M. AKAY CATERING - APR'22 MANAGEMENT MEETING CM $295.00 10082 LIEBERT CASSIDY WHITMORE MEMBERSHIP - SAN MATEO CO ERC 7/1/22-6/30/23 HR $6,302.00 10083 RYAN ENRIGHT REFUND - PERMIT OVERPAY BP $224.89
10084 PG & E 5/2/22 - 6/1/22 $320.41
10085 PRINT COPY XPRESS SUPPLIES - BUSINESS CARDS STAFF PW $65.78 10086 PRIORITY 1 MAINT - MULTIPLE VEHICLES PD $8,847.93 10087 PUMP REPAIR SERVICE CO., INC. REPAIR - OAKS PUMP STATION PW $1,128.44 10088 R & A JANITORIAL SERVICE, LLC MAINT - CONCOURSE CLEANUP PW $75.00 10089 ROBERT HALF INTERNATIONAL INC TEMP SERVICE- W/E 5/13/22-6/24/22 MULTIPLE INVOICES FN $7,912.50 10090 SAN MATEO COUNTY SHERIFF'S OFFICE FEE- COYOTE POINT RANGE 5/22 PD $1,200.00 10091 SFPUC FINANCIAL SERVICES APR '22/MAY '22 - WATER QUALITY ANALYSIS PW $2,890.00 10092 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS $292.58 10093 SUTTER EAP APR-JUN '22 EMPLOYEE ASSIST $828.90
10094 TYLER TECHNOLOGIES, INC. TRAIN- ERP FINANCIAL SYSTEM 6/01/22-6/09/22 FN $4,320.00 10095 ADP, LLC MAY '22 MASTERTAX SOFTWARE SUPPORT FN $76.08 10096 AGUILAR & SONS REPAIR - INSTALL ASPHALT MULTIPLE SITES PW $486.00 10097 ALHAMBRA & SIERRA SPRINGS JUN '22 WATER BP $11.58 10098 ANN STAR FORMAN FEE - NOTARY SERVICES JUN '22 BP $150.00 10099 ASSOCIATION OF BAY AREA GOVERNMENTSFEE - MEMBERSHIP FY22-23 $3,595.00 10100 AT&T 5/24/22-6/23/22 $434.71
10101 ATLAS TOWING SERVICES, INC TOW - FLAT TIRE SERVICE/CAR TO STATION PD $375.00 10102 AUTOMOBILI COUNTRY CLUB, LLC MAINT - AUTO DETAILING FORD #5 PD $150.00 10103 BARTEL ASSOCIATES, LLC MAY '22 OPEB VALUATION SERVICE FN $495.00 10104 BEST BEST & KRIEGER LLP FEE - JUN '22 LEGAL SERVICES $10,464.50 10105 BOSCO OIL COMPANY GAS PD $5,978.81
10106 BURNETT LANDSCAPE DEVELOPMENT INC MAINT - JUL '22 HBF LANDSCAPE VARIOUS SITES $5,421.00 10107 C-CAG FY22-23 GAS TAX/GEN FUND/ CONGESTION RELIEF FN $34,509.00 10108 CALIFORNIA MUNICIPAL STATISTIC, INC DIRECT & OVERLAPPING DEBT FOR ACFR 6/30/22 FN $480.00 10109 CASEY CONSTRUCTION, INC. A2 PHASE 2 PRIORTY PRJ PW $697,262.00 10110 CENTRAL COUNTY FIRE DEPARTMENT REMIT - Q4 FY 21/22 FIRE REVIEW FEE FIN $8,935.50 10111 CITY OF SOUTH SAN FRANCISCO COUNCIL OF CITIES MEETING 7/22/22 CHUANG CO $50.00 10112 CIVICPLUS SOFTWARE - AUDIOEYE WEBSITE ADA COMPLIANCE IT $2,109.59 10113 COMCAST 6/20/22 - 7/19/22 PD $228.39
10114 COUNTY OF SAN MATEO INFO SVC JUN '22 MICRO CHANNEL LINES PD $164.51 10115 CSG CONSULTANTS, INC. BUILD INSPECT MAY'22/BUILD PLAN SERVICE JUN '22 BP 3,761.55 10116 DAILY JOURNAL CORPORATION LEGAL NOTICE - COUNTY TAX ROLL/ELECTION CL 1,679.40 10117 DUDEK TREE ORDINANCE UPDATE 5/28/22-6/24/22 CM $3,982.50 10118 EXXELL CORPORATION MAINT - FIRE EXTINGUISHERS PD $500.12 DocuSign Envelope ID: E2712312-A300-4AFF-A4B9-41A59C1EF0BF -251-
TOWN OF HILLSBOROUGH
PURCHASES MADE DURING JULY 2022
10119 FREDCO MARKETING PRINT/MAIL - BUSINESS LICENSE RENEWALS FN $5,419.09 10120 INTERSTATE BATTERY SYSTEM OF SF PARTS - SCADA BATTERY CORP YARD PW $98.55 10121 THE KELLER CENTER MEDICAL EXAM FOR CASE PD 700.00 10122 KRONOS SAASHR, INC. JUN'22 PAYROLL PROCESSING FN $1,890.91 10123 LEADERSHIP COUNCIL SAN MATEO COUNTYFEE - 2022 CLASS TUITION STAFF CM $2,600.00 10124 MARK D HUDAK LEGAL SERVICES - JUN 2022 CM $2,520.00 10125 MASTERPIECE GARDENERS, INC MAINT - JUN '22 HBF LANDSCAPE VARIOUS SITES $600.00 10126 MATRIX CONSULTING GROUP, LTD MAY'22/JUN'22-GEN PLAN MAINT COST OF SRVC STUDY FN $2,010.00 10127 METROPOLITAN PLANNING GROUP INC CONSULT - JUN '22 PLANNER SERVICES BP $8,912.50 10128 MUNICIPAL CODE CORPORATION HILLSBOROUGH MUNICIPAL CODE SUPPLEMENT 24 CL $2,344.67 10129 OCCUPATIONAL HEALTH CENTERS OF CA EMPLOYEE PHYSICAL STAFF HR $236.00 10130 BV369 TRUST REFUND - GRADE DEPOSIT BP $353,440.00 10131 D&A BUILDERS REFUND - PERMIT FEE BP $2,596.00
10132 JANICE FUNG CHU LEE REFUND - BUILD DEPOSIT BP $17,731.00 10133 JANICE FUNG CHU LEE REFUND - GRADE DEPOSIT BP $70,000.00 10134 MAHNAZ AKBARIEH REFUND - BUILD DEPOSIT BP $500.00 10135 SANDRA BEHLING REFUND - GRADE DEPOSIT BP $5,000.00 10136 YASAR MASOUDNIA REFUND - BUILD DEPOSIT BP $2,400.00 10137 YASAR MASOUDNIA REFUND - GRADE DEPOSIT BP $7,500.00 10138 JULIE BORDEN REIMB - 2022 PARADE CAR MAGNETS CM $720.29 10139 GRAHAM CONTRACTORS REFUND - HYDRANT METER DEPOSIT FN $2,000.00 10140 PENINSULA CONFLICT RESOLUTION CENTER2021-2022 COMMUNITY MEDIATION SERVICES CM $2,756.25 10141 PENINSULA UNIFORMS & EQUIPMENT, INC UNIFORM - SHIRTS STAFF PD $292.16 10142 PETERSON POWER SYSTEMS, INC. PURCHASE-BACKHOE AND TRACTOR REPLACEMENT PW 277,812.09 10143 PG & E 6/1/22-6/29/22 $28.93
10144 PLAN JPA 2022-23 INSURANCE PREMIUMS $563,887.00
10145 PLAN JPA MAY '22 DEDUCTIBLE CLAIMS $750.00
10146 PRIORITY 1 MAINT - MULTIPLE VEHICLES PD $2,950.00 10147 QUENCH USA, INC EQUIP - WATER MACHINE & SERVICE 6/28/22-7/27/22 PD $180.47 10148 R & A JANITORIAL SERVICE, LLC JUL '22 JANITORIAL SERVICE/DEEP CLEAN TH ANNEX PW 13,746.80 10149 ROBERT HALF INTERNATIONAL INC TEMP SERVICE - W/E 5/20/22-7/8/22 MULTIPLE INVOICES FN 10,762.50 10150 SAN MATEO CO CITY MANAGERS ASSOC. FEE - 22-23 MEMBERSHIP DUES CM $400.00 10151 SAN MATEO CO ENVIRONMENTAL SERVICES AGENCY FEE - GENERATOR FUEL STORAGE PD $318.00 10152 SAN MATEO CO NARCOTICS TASK FORCE 2022-23 CONTRIBUTION PD $28,833.00 10153 SHARP ELECTRONICS CORPORATION APR '22/MAY '22 COPIER CHARGES FN 1,510.10 10154 STANDARD INSURANCE COMPANY JUL '22 GROUP LIFE/ADD/LTD ASSESSMENT FN $2,929.76 10155 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 209.46 10156 SUSTAINABLE SAN MATEO COUNTY 22/23 CONTRIBUTION FOR PUBLICATION CM $5,000.00 10157 TELECOMMUNICATION ENGINEERING ASSOCRIMS CAD/RMS TECH SERVICES 4/1/22-6/30/22 PD $2,300.00 10158 TURBO DATA SYSTEMS, INC. JUN'22 CITATION PROCESSING & SCANNER PD $1,762.20 10159 UNITED STATES POSTAL SERVICE REPLENISH POSTAGE FUNDS FN $4,000.00 10160 VIKING SHRED LLC DESTRUCTION SERVICES PD $78.99
TOTAL GOODS & SERVICES FOR THE MONTH PAID BY CHECK $ 6,547,400.02 CALPERS RETIREMENT CONTRIBUTIONS 99,107.74
CALPERS ANNUAL UAL PAYMENT 2,593,706.00
RETIREE HEALTH REIMBURSEMENTS 89,016.82
TOTAL GOODS & SERVICES FOR THE MONTH $ 9,329,230.58
DocuSign Envelope ID: E2712312-A300-4AFF-A4B9-41A59C1EF0BF -252-
TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
2 CONSENT CALENDAR
CITY COUNCIL MEETING
AUGUST 08, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION AMENDING THE TOWN’S MASTER FEE SCHEDULE TO
INCORPORATE A CHANGE IN THE GENERAL PLAN MAINTENANCE FEE SUMMARY: The Town provides the community with a wide variety of municipal services, including, but not limited to, police and fire protection, water delivery, wastewater collection, street maintenance, storm drainage, planning and development services, and building inspection services. General purpose revenues, such as property taxes, are used to fund community-wide services such a police protection. User fees are used to cover the cost of providing services that have special benefit to an individual or group such as a planning application, building permit or encroachment permit associated with projects or property.
The Town’s Master Fee Schedule was last updated and adopted on May 9, 2022 (Resolution No. 22-34) to reflect the current costs to provide services. The General Plan Maintenance Fee Study concluded after the adoption and is presented in this agenda item as an update to the Master Fee Schedule. If approved at the August 8, 2022 City Council meeting, the General Plan Maintenance Fee would be effective immediately.
General Plan Maintenance Fee
The Town conducted a Request for Proposal for a consulting firm to provide a technical fee analysis of the General Plan Maintenance Fee. Matrix Consulting was awarded the project and has completed the technical report (Attachment 2).
The General Plan Maintenance Fee provides a revenue stream to maintain the Town’s General Plan. The General Plan review process is currently underway. The current General Plan Maintenance Fee, which was last updated July 1, 2004, is .05% of building valuation value on various permit categories. To recover costs to the Town, the recommendation is to change the General Plan Maintenance Fee to .51% of building valuation value on Building and Combination Permit Categories (e.g., larger projects such as home remodels). For comparison, other cities that charge a General Plan Maintenance Fee as a percentage of building valuation include: Belmont at .75%, San Mateo at .59%, and Millbrae at .39%.
The Town retained an independent consultant to study the costs of reviewing the General Plan, and to establish a General Plan Maintenance Fee that reflects each project’s share of the cost of such review.
FISCAL IMPACT: The General Plan Maintenance Fee is projected to provide approximately $268,000 in annual revenue to pay for the ongoing maintenance of the General Plan. -253-
Agenda Staff Report - Hillsborough City Council
August 08, 2022
ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS:
1. Resolution
2. General Plan Maintenance Fee Study Report
3. Master Fee Schedule
PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION: Adopt resolution amending the Town of Hillsborough’s Master Fee Schedule to incorporate a change in the General Plan Maintenance Fee. -254-
RESOLUTION NO. 22-
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH
AMENDING THE MASTER FEE SCHEDULE TO INCORPORATE A CHANGE IN
GENERAL PLAN MAINTENANCE FEE
WHEREAS, the Town of Hillsborough ("Town") provides the community with a wide variety of municipal services, including, but not limited to, police and fire protection, water delivery, wastewater collection, street maintenance, storm drainage, planning and development services, and building inspection services; garbage flat fee and San Mateo County Animal Control fee and charges; and
WHEREAS, annually, the Town sets the fees and charges necessary to provide services; and
WHEREAS, the General Plan Maintenance Fee is governed by Government Code section 66014(b) which states that fees “may include the costs reasonably necessary to prepare and revise the plans and policies that a local agency is required to adopt before it can make any necessary findings and determinations”; and
WHEREAS, the Town recently retained an independent consultant to conduct a General Plan Maintenance Fee study and it was determined that the General Plan Maintenance Fee should equal 0.51% of building valuation value on Building and Combination Permit Categories; and WHEREAS, the change to the General Plan Maintenance Fee requires an adjustment in the Master Fee Schedule.
NOW, THEREFORE, be it resolved, determined, and ordered by the City Council of the Town of Hillsborough, California, that:
SECTION 1. The above Recitals are true and correct and by this reference incorporated herein.
SECTION 2. The City Council hereby adopts the General Plan Maintenance Fee of .51% (0.0051) of Building and Combination permit valuation and the June 2022 General Plan Maintenance Fee Analysis Report, and amends the Fiscal Year 2022-2023 Town of Hillsborough Schedule of Fees and Charges as outlined in Exhibit "A" hereto attached. The General Plan Maintenance Fee imposed by this Resolution shall supersede any prior fees or charges imposed by resolution or otherwise by the City Council, to the extent such prior fees or charges conflict herewith.
SECTION 3. The City Council finds and determines that:
(a) The General Plan Maintenance Fee established by this -255-
ATTACHMENT 1
2 resolution:
(1) includes the cost reasonably necessary to prepare and revise the General Plan that the City is required to adopt; and
(2) will be charged as a percentage of construction valuation to ensure that the fee is proportional to the project and its impact on long-range planning and the overall General
Plan; and
(3) will be charged in an amount that is no more than
necessary to cover the reasonable costsof the
governmental activity for which the General Plan
Maintenance Fee is imposed; and
(4) the manner in which those costs are allocated to a payor bears a fair or reasonable relationship to the payor's
burdens on, or benefits received from, the governmental activity for which the General Plan Maintenance Fee is
imposed.
(b) The General Plan Maintenance Fee is not a tax within the meaning of California Constitution article XIII C, section 1(e).
SECTION 4. If any section, subsection, clause or phrase in this resolution or the application thereof to any person or circumstances is for any reason held invalid, the validity of the remainder of this resolution or the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases or the application thereof to any person or circumstance be held invalid.
SECTION 5. This resolution shall take effect immediately. __
Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of August 2022, by the following vote of the members thereof:
AYES: Councilmembers:
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3 NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
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General Plan Maintenance Fee Analysis
TOWN OF HILLSBOROUGH, CALIFORNIA
FINAL REPORT
June 2022
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ATTACHMENT 2
Table of Contents
1. Introduction and Executive Summary..........................................................1
2. General Plan Fee Calculation ......................................................................5
3. Comparative Survey......................................................................................9 -259-
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1. Introduction and Executive Summary
The report, which follows presents the results of the General Plan Maintenance Fee Analysis Study conducted by the Matrix Consulting Group for the Town of Hillsborough (Town).
1 Project Background and Overview
The Town of Hillsborough currently assesses a General Plan Maintenance Fee along with Building Permit fees. This fee is assessed on all building permits at 0.05% of the valuation of the Building Permit. This fee is meant to recover costs associated with the Town’s long-range planning efforts, but most importantly any updates to its General Plan. The Town has not evaluated this particular fee in at least 10 years and is currently undergoing updates to its General Plan. With the recent emphasis of State guidelines on long-range planning activities for local communities, it is imperative that this fee be evaluated to ensure that it is complaint with legal regulations and sufficient to meet the Town’s needs.
The results of this study provide an understanding of the current costs associated with long-range planning activities.
2 General Project Approach and Methodology
The Matrix Consulting Group accomplished the requested scope of work by applying a thorough project approach which included:
• Reviewing Long-Range Planning Activities: Reviewing information provided by the Town regarding the types of long-range planning activities that can be covered under the fee such as Housing Element Update, Land Use Elements, and other components of the plan.
• Collecting Building Permit Information: Working with Town staff to collect information regarding the types of building permits being issued and overall development activity.
• Evaluating Staffing Costs Associated with Long-Range Planning: Determining any in-house Town staff that work on long-range planning activities and annual percentage of effort associated with those activities.
• Reviewing Legal Regulations: Reviewing legal regulations regarding the General Plan Maintenance Fee and ensuring appropriate compliance. -260-
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• Discussing Draft Results: Reviewing draft results with Town staff to ensure that they are reflective of appropriate costing assumptions. • Documentation of Results: Documenting the methodology of the calculation and logic for the nexus for review and transparency.
These steps enabled the project team to ensure that all components were reviewed and discussed to allow for the most fair and defensible calculation of the General Plan Maintenance fee.
3 Legal Summary
The General Plan Maintenance fee is governed by Government Code Section 66014(b) which states that fees “may include the costs reasonably necessary to prepare and revise the plans and policies that a local agency is required to adopt before it can make any necessary findings and recommendations.” This code states that fees can be charged against zoning changes, zoning variances, use permits, building inspections, and filing applications.
It is important to note that unlike other fees, the General Plan Fee cannot be considered a “user fee” or a “fee for service”. There is no “service” that is being provided. Rather the fee is meant to be used to be charged against user fees to recover the costs associated with development and preparation of the overall General Plan. It is more similar in nature to an impact fee. The fee is most typically charged in the Building Phase, as it is during that phase when there is an actual impact that is made to the footprint of the community, which will impact the land use, housing, circulation, and all other elements of the General Plan.
While traditionally, the General Plan Fee has been established and applied against all building permits; during discussions with Town staff, it was determined that electrical permits, or re-roof permits did not have enough of an impact on the overall footprint of the community so as to require updates or re-imagining of the General Plan. Rather specific permits associated with remodels, renovations, new houses, etc. were more representative of changes to the community. Therefore, through this analysis it was determined that only a specific subset of building permits would be assessed this fee.
This creates a stronger nexus between the fee being charged and the purpose for which it is being charged.
Additionally, it is proposed that this fee be charged as a percentage of the construction valuation, due to the nexus between the construction valuation and the impact on the -261-
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City’s long-range planning and general plan efforts. The nexus is that projects that are lower dollar value, are smaller projects in nature (i.e., remodels, renovations, etc.) and do not have as much of an impact on the General Plan elements like the housing element or transportation element. However, adding a new house, or replacing an existing house, with a completely different house, which is generally valued higher, has a much larger impact on the overall zoning and housing density of the Town and therefore on the larger General Plan. By utilizing valuation as the metric for the fee, the Town ensures that the fee scales proportionately to the project and its impact on the overall General Plan. 4 Summary of Results and Recommendations
Based upon the General Plan components and in-house staffing cost, the project team calculated the full cost of the General Plan Maintenance fee as 0.51% of Building Permit Valuation. The following table shows the current fee, the full cost calculated, and the resulting difference:
Table 1: Comparison of General Plan Maintenance Fee
Fee Name Current Fee Full Cost Fee Difference
General Plan Fee - % of Valuation 0.05% 0.51% (0.46%)
As the table indicates, the full cost fee calculated for the General Plan Maintenance Fee at 0.51% is significantly higher than the current fee. It is important to note that this fee has not been reviewed in over 10 years and the cost associated with many of these activities have increased. In FY21 the Town only generated $49,411 in revenue associated with the General Plan Maintenance Fee, compared to the approximately $268,000 in annual costs. Additionally, there has also been an increase in the need for these activities due to state regulations and updates to the policies and plans.
The 0.51% calculated is the maximum justifiable fee that can be assessed. If the Council were to assess a lower fee, it would result in a subsidy and the full costs would not be recovered and would have to be funded through alterative mechanisms. It is also important to note that while previously all building permits were being assessed 0.05%, going forward only a subset of these permits will be assessed this fee. Therefore, even though the fee would increase, it would only impact those permits and applications that are doing larger projects such as home remodels rather than smaller projects such as water heater replacements or fence upgrades.
The display of the cost recovery figures shown in this report are meant to provide a basis for policy development discussions among Council members and City staff, and do not represent a recommendation for where or how the Council should act. The setting of the -262-
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“rate” or “price” for services, whether at 100 percent full cost recovery or lower, is a policy decision to be made only by the Council, with input from City staff and the community.
The Town already follows best practices by collecting the revenue associated with this fee in a separate fund and account. This ensures that the funds for the General Plan can only be used to help fund the updates to plan elements and offset staff costs. The Town should continue to follow this practice. Furthermore, unlike other fees, there should be no annual increase applied to this fee, as this is a fee based upon a calculation that already considers the most recent economic environment.
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2. General Plan Fee Calculation
Hillsborough currently assesses a General Plan Maintenance Fee as part of its building permit process. The fee is meant to account for updates to the general plan, zoning ordinance, housing elements, and other long-range planning activities that are part of the larger General Plan. This is a typical fee charged by many jurisdictions. The following subsections discuss the annual costs associated with the General Plan Fee, the calculation of the fee, a comparison of the fee, and overall fee recommendations. 1 General Plan Fee Annual Costs
Hillsborough charges its General Plan Maintenance fee as a percentage of the building permit valuation, at the time of building permit submittal. The concept behind charging it during the building permit phase is that any development project which gets to that phase makes enough of an impact to require the need for an update to the Zoning Code or the General Plan.
The project team worked with staff in the Planning Division to estimate the annual percentage of time spent by staff as it relates to long-range planning. In addition to internal staff cost there are contracted costs associated with updates to the General Plan.
The following table shows by cost component the total cost associated with each type of cost factor, the life of the cost factor, and the resulting annual cost:
Table 2: General Plan Maintenance Fee Cost Components
Cost Category % of Time Cost Life (Yrs.) Total Annual Cost Building and Planning Director 80%1 $179,150 1 $179,150 Assistant Director 20%2 $34,174 1 $34,174
Subtotal Staffing Costs $213,324
Land Use Element $60,000 12 $5,000
Housing Element Update $355,000 8 $44,375
Other Elements $60,000 12 $5,000
Subtotal Non-personnel Costs $54,375
Total General Plan Maintenance Annual Cost $267,699
The total annual costs associated with updating the General Plan are approximately $268,000; of which staff costs represents $213,000. It is important to note that the staff costs in the table are representative of fully burdened hourly rates and billable time. 1 Only 80% of time allocated to Planning Division, which equates to 48% overall allocation. 2 Only 20% of time allocated to Planning Division, which equates to 8% overall allocation. -264-
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2 General Plan Fee Calculation
The General Plan fee is currently assessed as a percentage of the building valuation. In the Town’s permitting system there are several different types of building permits issued:
Building, Combination, Encroachment, Electrical, Mechanical, Plumbing, and Grading. The following table shows the total valuation of permits issued by category:
Table 3: Building Permit Valuation – by Permit Type and Fiscal year Category FY17 FY18 FY19 FY20 FY21
Building $4,904,756 $4,083,139 $3,923,486 $2,874,866 $4,905,330 Combination $72,608,984 $68,353,850 $70,828,770 $44,945,553 $88,405,971 Electrical $1,431,995 $1,951,212 $1,946,782 $2,886,812 $7,325,338 Encroachment $1,565,441 $2,160,689 $1,997,763 $1,019,029 $3,025,920 Grading $20,000 $50,000 $0 $10,000 $65,000
Mechanical $178,805 $228,187 $161,351 $424,887 $701,552 MEP $203,334 $450,258 $355,996 $575,743 $455,104
Plumbing $564,801 $735,288 $705,591 $1,210,924 $1,559,399 Revision $300 $194,450
Total $81,478,116 $78,012,623 $79,919,739 $53,948,114 $106,638,063 As can be seen the total building permit valuation has fluctuated from a low of $53.9 million in FY20 to a high of $106.6 million in FY21.
Within those categories, the two categories that are most relatable to the General Plan updates are Building and Combination. Within these two categories, the project team collected valuation information for the projects that would be considered eligible for the General Plan Fee. The following table shows by category the total valuation associated with the permits for the last five fiscal years:
Table 4: Building Permit Valuation – by Permit Sub-type and Fiscal year Category FY17 FY18 FY19 FY20 FY21
Building $269,600 $25,000 $239,014 $70,775 $572,875
ADU Attached $814,875 $425,250 $949,875 $626,600 $2,395,125 ADU Detached $1,255,425 $1,953,825 $2,449,100 $1,492,625 $4,833,325 New SFD $4,108,250 $6,069,625 $3,999,250 $2,862,750 $5,662,250 Additions / Alterations $16,741,915 $20,263,475 $19,195,687 $16,412,125 $26,852,500 Remodels $14,921,538 $11,461,556 $9,471,513 $5,429,502 $11,786,705 Total $38,111,603 $28,737,175 $36,304,438 $26,894,377 $52,102,780 As the table indicates, similar to overall valuation, the valuation for these categories also varies. While traditionally, the project team might utilize an average, discussions with Town staff indicate that FY22 is trending similar to FY21 and that FY21 is more reflective of the future of development within the Town. Therefore, in order to assess this fee as a percentage of the building valuation, the project team took the annual cost associated -265-
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with general plan upkeep and divided it by the total specific permit valuation for FY21.
The following table shows this calculation:
Table 5: General Plan Maintenance Fee Calculation
Category Amount
Total General Plan Annual Maintenance Cost $267,699
FY21 Building Permit Valuation – Specific Permits $52,102,780 General Plan Maintenance Fee 0.51%
Based upon the above table, the Town’s full cost fee for the General Plan is 0.51%. This indicates that if a building valuation is $100,000, it’s General Plan fee would be $510. The following table compares the city’s current fee to the full cost fee calculated through this study:
Table 6: General Plan Maintenance Fee Per Unit Result Comparison Category Current Fee Full Cost Surplus / (Deficit)
General Plan Maintenance Fee 0.05% 0.51% (0.46%)
The Town’s current fee is 0.05%, meaning that under the current fee a permit valuation of $100,000 would result in a $50 fee, compared to the full cost (0.51%), which would result in a fee of $510. However, the difference in the full cost fee is that while the current fee was collected on every single building permit, the full cost fee is intended to only be collected on building permits resulting in a change in the footprint of the community (i.e., remodels, additions, ADUs, new homes, etc.).
Utilizing valuation as the proxy for a project’s impact on the General Plan creates proportionality. Smaller projects with less of an impact on the footprint of the community have a lower valuation (i.e., remodels and additions), while larger projects (i.e., new construction) that have a greater impact on the General Plan have a much larger valuation. Therefore, assessing the General Plan Maintenance fee on a project’s valuation will ensure that all projects pay a fee proportionate to their impact. 3 General Plan Fee – Annual Analysis
The project team also evaluated the annual revenue collected from the General Plan Fee.
The following table shows the annual revenue collected by the General Plan Fee by fiscal year:
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Table 7: General Plan Revenue by Fiscal year
Category FY17 FY18 FY19 FY20 FY21
General Plan Revenue $75,292 $36,466 $37,152 $24,829 $49,411 The annual revenue has fluctuated from a low of approximately $25,000 for FY20 to a high of $75,000 for FY17. The following table compares the FY21 revenue to the annual cost calculated or estimated for the General Plan and the difference and cost recovery level:
Table 8: General Plan Annual Cost Comparison
Category FY21 Revenue Annual Expense Annual Surplus / (Deficit) Cost Recovery General Plan $49,411 $267,699 ($218,288) 18%
As the table demonstrates the current General Plan fee is resulting in an annual deficit of approximately $218,000 or only recovering 18% of its costs. 4 Summary
Overall, the purpose of the General Plan Maintenance Fee is to set aside funds to be used to update the next general plan. The current fee of 0.05% even when applied against all building permits was insufficient to generate the revenue needed to cover consulting costs, let alone in-house staff costs. The Town should review the analysis conducted and determine where and how to set the General Plan Maintenance Fee. Any subsidy to the fee would have to be recovered through alternative means.
The proposed fee should continue to be collected and accounted for in a separate fund in compliance with accounting best practices. Additionally, it is important to note that while this fee will be higher, it is applicable to fewer projects and therefore has less of an impact on the overall community.
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3. Comparative Survey
As part of this analysis, the project team conducted a comparative survey of other local jurisdictions and their assessment of the General Plan Maintenance Fee. Like other comparative efforts, the survey below simply shows the fees charged by the jurisdiction and does not include the basis upon which the other jurisdictions calculated or developed their fee. General Plan Fees are typically assessed in two different manners:
1. % of Building Permit Fee: This is when the fee is charged as a proportion of the building permit fee, similar to a Plan Check Fee. For example, if the fee is 1% of the Building permit fee, if the building permit fee is $100, the General Plan Fee is $1.
2. % of Building Valuation: This is similar to Hillsborough when the fee is charged as a proportion of overall building valuation. For example, if the fee is 0.01% of the Building valuation fee, if the building’s project valuation is $10,000, the General Plan Fee is $100.
The following table shows the results of this comparative analysis, broken out between the two types of fees:
Table 9: General Plan Maintenance Fee – Comparative Survey Jurisdiction % of Building Permit Fee % of Building Valuation Atherton 2.39%
Belmont 0.75%
Burlingame 0.005%
Menlo Park 3%
Millbrae 0.39%
San Bruno 9%
San Mateo 0.59%
As the table indicates most of the surrounding jurisdictions charge a General Plan Maintenance Fee, however not all cities charge the fee in a similar manner. For example, Belmont and San Mateo charge it similar to Hillsborough as % of valuation, whereas Atherton and Menlo Park charge it as a percentage of the permit fee.
The Town’s current fee of 0.05% is below everyone who charges it as a percentage of valuation except for Burlingame. The full cost fee of 0.51% is below San Mateo and Belmont’s fee, but higher than Millbrae’s fee.
Updating the City’s General Plan Maintenance fee will allow Hillsborough to be in alignment with other jurisdictions and better recover its costs for long-range planning efforts.
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TOWN OF HILLSBOROUGH
SCHEDULE OF FEES AND CHARGES
Deposit accounts: Full payment is required before permits issued. Failure to pay additional monies owed under deposit account constitutes an infraction, regardless of permit issuance.
BUILDING DIVISION
Fee Description Task/Project Description Adopted FY 21-22 Adopted FY 22-23 Historic Building
Demolition Discretionary permit Actual cost with $2,000 minimum Actual cost with
$2,000 minimum
Certificate of hardship Actual cost Actual cost
Temporary Uses Trailers, prefab & rollaway houses$450 $450 Construction trailers $425 $425
Scan of Document Per page $3.00 each $3.00 each
CONSTRUCTION PERMIT FEES
INTRODUCTION
The Town of Hillsborough has adopted the 2016 California Building Code (CBC) that includes the 2015 edition of the International Building Code (IBC), the 2015 edition of the International Residential Code (IRC), the 2015 editions of the Uniform Mechanical and Plumbing Codes (UMC and UPC), and the 2015 edition of the National Electrical Code (NEC).
Building and Combination Permit Fees are based on the valuation of the project, which is the fair market value of labor and materials of the complete project, including materials and permanent fixtures. The Building Official determines cost per square foot, upon which to base the valuation. Electrical, mechanical and plumbing permit fees are often based on the number of hours staff spent on a particular project.
Town waives fees on second units except for plan check fees and the basic fees for photovoltaic systems.
SUMMARY AND BREAKDOWN OF FEES
Building Permit Fee The Building Permit Fee shall be as set forth in the Fee Schedule (See Table 1-A/18)
Electrical/Mechanical/Plumbing
Permit Fees
See Schedules E/18, M/08 & P/18.
Technology Fee The Technology Fee is charged on all permits and is 5% of all Permit Fee.
SMIP Fee The SMIP (Strong Motion Instrumentation Program) fee is a state fee collected on all building permits issued by local agencies and subsequently remitted to the State.
CalBSCF The CalBSCF (California Building Standards Administration Fund) fee is a state fee collected on all building permits issued by local agencies and remitted to the State.
General Plan Maintenance Fee The fee is intended to reimburse agencies for State mandates for land use policies, including the costs reasonably necessary to prepare and revise the General Plan.
Construction Vehicle Street Impact Fee The fee is intended to raise additional funds to improve streets that are impacted or heavily utilized by construction vehicles.
Business License Fee The business license fee is assessed on businesses including contractors operating within the Town limits. For convenience of administration, fees assessed on contractors and other construction related vendors, are collected upon issuance of the building permit.
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ATTACHMENT 3
TOWN OF HILLSBOROUGH
SCHEDULE OF FEES AND CHARGES
Deposit accounts: Full payment is required before permits issued. Failure to pay additional monies owed under deposit account constitutes an infraction, regardless of permit issuance.
Plan Review Fee The fee is assessed when plans are required for the issuance of the building permit.
Revised Inside Plan Check Fee This fee is based on actual time and computed based on current hourly rate.
Green Point Regulations
Monitoring Fee
When a project is required to meet the Green Point Regulation, the responsible party shall pay a monitoring fee to cover the costs of monitoring the project for compliance against the Green Point Checklist. The fee deposit shall be $1,200 to cover staff time.
The monitoring fee may be partially or fully refunded if the responsible party shows proof of his/her contracting with a Green Point rater. The Green Point rater shall provide evidence of adequate green building compliance or documentation to the Building Official showing compliance to the requirements pursuant to the Hillsborough Municipal Code 15.19.070.
Revised Outside Plan Check Fee This fee is based on actual cost.
Renewal Fee for an Expired Permit A renewal fee will be assessed for an expired permit based on the length of time from issuance and the value of the original permit.
Stop Work Issued When a Stop Work Notice is issued for work being performed without permits or performed beyond the scope of existing permits, a special investigation and inspection shall be made before permits may be reissued for such work and a fee will be charged.
Construction Site Stop Work When a Stop Work Notice is issued for work or conditions that violate California or Municipal Codes, a reactivation fee will be assessed.
Reinspection Fee When the work for a called inspection is not ready or not accessible to the inspector, a fee will be assessed and must be paid prior to calling the next inspection
Special Fee When the Building Inspection Department requested necessary services that are not included in the fee schedule, the Building Official may assess and collect such fees that are necessary to defray the cost of the service.
Fee Adjustment In instances where the strict application of the fee from this Schedule would constitute a substantial inequity to an applicant or to the Town, the Building Official shall be authorized to adjust such fees on a case-by-case basis. Any such adjustment shall be recorded in writing and entered into the appropriate files.
TABLE 1-A/18 – BUILDING AND COMBINATION PERMITS
Type of Fee How
Charged Adopted FY 21-22 Adopted FY 22-23
Building Permit Fee:
$1-$4,000 $181 $181
$4,001-$25,000
$158 for the first $4,000 plus
$14.30 for each additional
$1,000 or fraction thereof, to
and including $25,000
$158 for the first $4,000 plus
$14.30 for each additional
$1,000 or fraction thereof, to
and including $25,000
$25,001-$50,000
$468.51 for the first $25,000
plus $10.21 for each
additional $1,000 or fraction
thereof, to and including
$50,000
$468.51 for the first $25,000 plus
$10.21 for each additional
$1,000 or fraction thereof, to
and including $50,000
$50,001-$100,000 $720.90 for the first $50,000
plus $7.35 for each additional
$720.90 for the first $50,000 plus
$7.35 for each additional
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TOWN OF HILLSBOROUGH
SCHEDULE OF FEES AND CHARGES
Deposit accounts: Full payment is required before permits issued. Failure to pay additional monies owed under deposit account constitutes an infraction, regardless of permit issuance.
TABLE 1-A/18 – BUILDING AND COMBINATION PERMITS
Type of Fee How
Charged Adopted FY 21-22 Adopted FY 22-23
$1,000 or fraction thereof, to
and including $100,000
$1,000 or fraction thereof, to
and including $100,000
$100,001-$500,000
$1,086.95 for the first $100,000
plus $5.90 for each additional
$1,000 or fraction thereof, to
and including $500,000
$1,086.95 for the first $100,000
plus $5.90 for each additional
$1,000 or fraction thereof, to
and including $500,000
$500,001-$1,000,000
$3,446.05 for the first $500,000
plus $5.00 for each additional
$1,000 or fraction thereof, to
and including $1,000,000
$3,446.05 for the first $500,000
plus $5.00 for each additional
$1,000 or fraction thereof, to
and including $1,000,000
$1,000,000 and up
$5,944.80 for the first
$1,000,000 plus $3.75 for
each additional $1,000 or
fraction thereof
$5,944.80 for the first $1,000,000
plus $3.75 for each additional
$1,000 or fraction thereof
Green building – HMC
15.19.070-
Monitoring Fee
Each G-1 thru G-4 Projects $1,200 G-1 thru G-4 Projects $1,200 SMIP Per permit .01% (0.0001) of permit
valuation
.01% (0.0001) of permit
valuation
CalSSCF Per permit $1 per $25,000 of permit
valuation
$1 per $25,000 of permit
valuation
Business License Tax Per permit .5% (0.005) of permit
valuation with $20 minimum
.5% (0.005) of permit valuation
with $20 minimum
General Plan Maintenance Fee Per permit .05% (0.0005) of permit valuation (7/1/04)
.51% (0.0051) of Building and
Combination permit valuation
(8/8/22)
Construction Vehicle Impact
Fee Per permit .83% (0.0083) of the job value (7/1/06)
.83% (0.0083) of the job value
(7/1/06)
Technology Fee 5% (.05) of the permit fee
(7/1/03)
5% (.05) of the permit fee
(7/1/03)
Building Plan Check Fee Per permit
with plans 65% of the permit fee 65% of the permit fee
Building Bond Deposit Project >
than 50K 2% (0.02) of the job valuation 2% (0.02) of the job valuation Scan of Document Per page $3.00 each $3.00 each
Expedite Plan Check Fee Per hour SUM OF (Consultant cost + 20%) + (staff time x 1.5)
SUM OF (Consultant cost +
20%) + (staff time x 1.5)
Revision Plan Check Fee Per hour SUM OF (Consultant cost + 20%) + (staff time x 1.5)
SUM OF (Consultant cost +
20%) + (staff time x 1.5)
Stop Work Issued Pursuant to HMC § 15.04.070
+ Staff time
Pursuant to HMC § 15.04.070 +
Staff time
Public utility maintenance &
emergency tree removal Each Actual Cost Actual Cost
Re-inspection / Additional
Inspection Fee $150 $150
After Hour Inspection Fee (3
hour minimum) Each
3 hr min x 1.5 hourly rate
Additional hours at 1.5 x rate
Sunday = 3 hr min hourly rate
x 2
3 hr min x 1.5 hourly rate
Additional hours at 1.5 x rate
Sunday = 3 hr min hourly rate x
2 Staff time charge/lost job card Staff time Staff time Renewal fee for expired permit:
< 1 year Staff time Staff time
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TOWN OF HILLSBOROUGH
SCHEDULE OF FEES AND CHARGES
Deposit accounts: Full payment is required before permits issued. Failure to pay additional monies owed under deposit account constitutes an infraction, regardless of permit issuance.
TABLE 1-A/18 – BUILDING AND COMBINATION PERMITS
Type of Fee How
Charged Adopted FY 21-22 Adopted FY 22-23
> 1 year Staff time plus valuation of
the remaining work
Staff time plus valuation of the
remaining work
Construction Trailers Actual Cost Actual Cost
Recycle Monitoring Cost Cost + 20% (refer to HMC §
15.18.030)
Cost + 20% (refer to HMC §
15.18.030)
Recycle Fines
Pursuant to HMC § 15.18.040
(Up to ten times the cost of
the permit)
Pursuant to HMC § 15.18.040
(Up to ten times the cost of the
permit)
Building Bond Penalties Pursuant to HMC § 15.30.060 Pursuant to HMC § 15.30.060 Code Enforcement Penalties Refer to HMC § 15.04.070 +
staff time
Refer to HMC § 15.04.070 + staff
time
Permit Expired Fees Per hour Staff time charges Staff time charges Special Project Direct Cost See summary and
breakdown of fees
See summary and breakdown
of fees
Civil Engineering Plan Check
Fee Per hour Cost + 20% admin fee Cost + 20% admin fee
Engineering
Inspection/Consulting Per hour Cost + 20% admin fee Cost + 20% admin fee Outside Structural Plan Check Per hour Cost + 20% admin fee Cost + 20% admin fee Erosion Control Inspection Per hour See ENGINEERING SECTION See ENGINEERING SECTION Fire Plan Check/Review Per hour Charged directly by CCFD Charged directly by CCFD Copy of files or plans on a CD
or Disc $67 $67
REROOF:
< 5 SQUARE FEET
5 TO 40 SQUARE FEET
> 4O SQUARE FEET
VALUED @ $11,001 - $244.40
VALUED @ $25,001 - $440.51
VALUED @ $35,001 - $542.61
VALUED @ $11,001 - $244.40
VALUED @ $25,001 - $440.51
VALUED @ $35,001 - $542.61
SCHEDULE E/18 – ELECTRICAL AND COMBINATION PERMIT
Type of Fee How
Charged Adopted FY 21-22 Adopted FY 22-23
Electrical Permit Fee $181 $181
Electrical Combination Permit
Fee $71 $71
Additional
Appliance/Unit/Repair Each $40 $40
Business License Tax Per permit .5% .5%
Technology Fee Per permit 5% 5%
Generator Each $150 + BASE FEE $150 + BASE FEE
Electrical Services:
< 600 V up to 400 AMPS
< 600 V 400+ AMPS
Each
Each
$150 + BASE FEE
$220 + BASE FEE
$150 + BASE FEE
$220 + BASE FEE
New Single Family Residential Per SF $0.11 per square foot $0.11 per square foot Addition/Alteration < 1,150 SF Per SF $181 + BASE FEE $181 + BASE FEE Addition/Alteration > 1,150 SF Per SF $0.10 per square foot $0.10 per square foot Kitchen Each $150 + BASE FEE $150 + BASE FEE
Bathroom Each $110 + BASE FEE $110 + BASE FEE
Swimming Pools/Spa Each $260 + BASE FEE $260 + BASE FEE Tennis Courts Each $220 + BASE FEE $220 + BASE FEE
-272-
TOWN OF HILLSBOROUGH
SCHEDULE OF FEES AND CHARGES
Deposit accounts: Full payment is required before permits issued. Failure to pay additional monies owed under deposit account constitutes an infraction, regardless of permit issuance.
SCHEDULE E/18 – ELECTRICAL AND COMBINATION PERMIT
Type of Fee How
Charged Adopted FY 21-22 Adopted FY 22-23
Landscape Lighting Each $220 + BASE FEE $220 + BASE FEE Temporary Power Each $110 + BASE FEE $110 + BASE FEE
Photovoltaic
< 10kw
> 10kw
Each
Each
$299
$299
$299
$299
Re-inspection / Additional
Inspection Fee Per hour $150 $150
Staff Time Charge Per hour See schedule See schedule
Plan/Revision Plan Check Fee Staff time charges Staff time charges Direct Cost See summary and
breakdown of fees
See summary and breakdown
of fees
Photo Copy $1.00 for 1st page, $0.20 each
additional page plus tax
$1.00 for 1st page, $0.20 each
additional page plus tax
EVC and Battery Storage
Systems FEES ARE WAIVED FEES ARE WAIVED
SCHEDULE M/18 – MECHANICAL AND COMBINATION PERMIT
Type of Fee How
Charged Adopted FY 21-22 Adopted FY 22-23
Mechanical Permit Fee $181 $181
Mechanical Combination
Permit Fee $80 $80
Additional
Appliance/Unit/Repair Each $79 $79
Business License Tax Per permit See table above See table above Technology Fee Per permit See table above See table above Plan & Revision Plan Check Fee Per hour Actual staff time Actual staff time New Single Family Residential Per SF $0.10 per square foot + BASE FEE
$0.10 per square foot + BASE
FEE
Addition/Alteration:
< 1,056 SF
> 1,056 SF Per SF
$150 + BASE FEE
$0.09 per square foot + BASE
FEE
$150 + BASE FEE
$0.09 per square foot + BASE
FEE
HVAC/Heating System
Replacement Each $150 + BASE FEE $150 + BASE FEE
Additional appliances Each $40 $40
Home Efficiency Review $126 /hour + BASE FEE $126 /hour + BASE FEE Stop Work Penalties Pursuant to HMC § 15.04.070
+ Staff time
Pursuant to HMC § 15.04.070 +
Staff time
Re-inspection Fee / Additional
inspection fee Each $150 $150
Staff Time Charge Per hour See schedule See schedule
Plan/Revision Plan Check Fee Per hour Staff time charges Staff time charges Direct Cost See summary and
breakdown of fees
See summary and breakdown
of fees
-273-
TOWN OF HILLSBOROUGH
SCHEDULE OF FEES AND CHARGES
Deposit accounts: Full payment is required before permits issued. Failure to pay additional monies owed under deposit account constitutes an infraction, regardless of permit issuance.
SCHEDULE P/18 – PLUMBING PERMIT AND COMBINATION PERMIT
Type of Fee How
Charged Adopted FY 21-22 Adopted FY 22-23
Plumbing Permit $181 $181
Plumbing Combination Permit
Fee $71 $71
Business License Tax Per permit See table above See table above Technology Fee Per permit See table above See table above New Single Family Residential Per SF $0.11 per square foot $0.11 per square foot Addition/Alteration:
<950 SF
>950 SF Per SF
$150 + BASE FEE
$0.10 per square foot
$150 + BASE FEE
$0.10 per square foot
Additional Appliances Per Unit $40 $40
Kitchen Each $150 + BASE FEE $150 + BASE FEE
Bathroom Each $110+ BASE FEE $110+ BASE FEE
Swimming Pools Each $260 +BASE FEE $260 +BASE FEE
Sewer & Water Test Each $409 + BASE FEE $409 + BASE FEE Backflow Device for Sewer Each $110 + BASE FEE $110 + BASE FEE Sewer Lateral Replacement Each $110 + BASE FEE $110 + BASE FEE Drainage/Irrigation $220 + BASE FEE $220 + BASE FEE
Stop Work Penalties Pursuant to HMC § 15.04.070
+ Staff time
Pursuant to HMC § 15.04.070 +
Staff time
Re-inspection / Additional
Inspection Fee $150 $150
Plan & Revision Plan Check SUM OF (Consultant cost +
20%) + (staff time)
SUM OF (Consultant cost +
20%) + (staff time)
Staff time charge See schedule See schedule
Direct Cost See summary and
breakdown of fees
See summary and breakdown
of fees
Sewer Connections –
Residential & Commercial
See Special Tax, Service
Charges, & Other Citywide
Fees
See Special Tax, Service
Charges, & Other Citywide
Fees
New Water Service or Meter
See Special Tax, Service
Charges, & Other Citywide
Fees
See Special Tax, Service
Charges, & Other Citywide
Fees
-274-
TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
3 CONSENT CALENDAR
CITY COUNCIL MEETING
AUGUST 08, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION IN SUPPORT OF REOPENING THE MACK E. MICKELSON
ARTHRITIS AND REHABILITATION CENTER THERAPY POOL FOR COMMUNITY USE AT
THE MILLS HEALTH CENTER
SUMMARY: The Mack E. Mickelson Arthritis and Rehabilitation Center Therapeutic Pool is a wheelchair accessible, warm water pool used by seniors and people with chronic pain or disabilities. The only pool in San Mateo County specifically designed for therapeutic use, it has been closed since mid-March 2020, when the first shelter-in-place order went into effect.
Since last year, a group of pool users has formed a 501(c)(3), Warm Water Wellness, Inc., to advocate for the reopening of the pool. Representatives of the group spoke during public comment at the May 9, June 13, and July 11, 2022 City Council meetings to ask the Council to adopt a resolution calling on Sutter Health to reopen the pool. As of July 15, the City Councils of Millbrae and San Mateo, the San Mateo County Board of Supervisors, and the Board of the Sequoia Healthcare District have adopted resolutions urging Sutter Health to reopen the Mickelson pool for community use. Other cities that have resolutions on upcoming agendas include Belmont, Burlingame, Colma, Foster City, Half Moon Bay, and San Carlos. Should this City Council adopt the attached resolution, it will be forwarded to Sutter Health’s Interim President and Chief Executive Officer James Conforti. The content of the attached resolution is based on the template provided by Warm Water Wellness, Inc.
FISCAL IMPACT: There is no fiscal impact associated with this agenda item.
ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS: Resolution
PREPARED BY: Mandy Brown, Senior Management Analyst
RECOMMENDATION: Adopt the resolution in support of reopening the Mack E. Mickelson Arthritis and Rehabilitation Center Therapy Pool for community use and forward the adopted resolution to Sutter Health’s Interim President and Chief Executive Officer James Conforti. -275-
RESOLUTION NO. 22-
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH IN SUPPORT OF REOPENING THE MACK E. MICKELSON ARTHRITIS AND
REHABILITATION CENTER THERAPY POOL FOR COMMUNITY USE AT
THE MILLS HEALTH CENTER
WHEREAS, the Mack E. Mickelson Therapy Pool ("Mickelson") is an ADAaccessible warm water therapy pool located in San Mateo, California at Mills Health Center, which is operated by Sutter Health; and WHEREAS, Mickelson was constructed over 25 years ago using charitable contributions from residents of San Mateo County; and
WHEREAS, for over 25 years, thousands of residents of San Mateo County who suffered, and many who continue to suffer, from health issues including permanent disabilities, debilitating injuries, autoimmune disorders, and mobility impairments, used Mickelson to rehabilitate those health issues and mitigate physical decline; and
WHEREAS, both intervention and prevention are equally critical components of an equitable and effective healthcare system; and
WHEREAS, Mickelson's ability to provide both preventative and interventionist therapies to residents of San Mateo community suffering from health issues makes it an asset to the community at large and even more so to elderly residents and residents with mobility impairments; and WHEREAS, notwithstanding the COVID-19 pandemic, Sutter Health, its subsidiaries, and its employees receive significant financial benefits for providing healthcare services in San Mateo County from both public and private contracts; and
WHEREAS, in January 2020, Sutter Health substantially decreased the hours during which Mickelson was accessible to community members who relied upon its availability to maintain their health; and WHEREAS, in March 2020, as a result of the COVID-19 pandemic, Sutter Health ceased operating Mickelson; and
WHEREAS, in June 2021, Sutter Health publicly announced its intent to permanently close Mickelson; and
WHEREAS, as a direct result of Sutter Health's decision to close Mickelson, residents of San Mateo County who previously relied upon Mickelson to treat and prevent significant health issues; and
WHEREAS, over 4,600 patients, caregivers, and community members have signed a petition to reopen Mickelson to increase the health, independence, -276-
2 and dignity of those residents who rely upon it; and
WHEREAS, there is also an apparent and growing need for the Mickelson therapy pool and the services it provides due to San Mateo County's rapidly increasing number of elderly residents who are highly likely to suffer from the health issues noted above, among others; and
WHEREAS, there are no comparable warm water therapy pools that can adequately accommodate the residents of San Mateo County who previously relied upon Mickelson; and
WHEREAS, there is currently no plan to construct an adequate and accessible replacement warm water therapy pool in San Mateo County, and any plan to do so would require significant financing as well as several years of design, planning, permitting, and construction; and WHEREAS, estimates provided by Sutter Health suggest that reopening Mickelson with any required repairs or upgrades would cost approximately $250,000.00; and
WHEREAS, the City Council recognizes the benefit of Mickelson to the community and the scarcity of a similar resource.
NOW, THEREFORE BE IT RESOLVED that the City Council of the Town of Hillsborough hereby urges Sutter Health to work collaboratively with the pool users advocacy group and Peninsula Health Care District to explore possible solutions and to take advantage of the Peninsula Health Care District’s generous offer to fully fund any necessary repairs, remodeling, and operational costs of the Mickelson therapy pool until a new facility becomes available in the area.
Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of August 2022, by the following vote of the members thereof:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
-277-
TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
4 CONSENT CALENDAR
CITY COUNCIL MEETING
AUGUST 08, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: RECONFIRM FINDINGS AND DETERMINATIONS UNDER RESOLUTION NO. 21-87 PURSUANT TO ASSEMBLY BILL 361
SUMMARY: On March 17, 2020, in the face of the COVID-19 pandemic, Governor Gavin Newsom issued Executive Order N-29-20 suspending certain provisions of the Ralph M. Brown Act in order to allow for local legislative bodies to conduct their meetings completely telephonically or by other electronic means.
The provisions in the Brown Act that were suspended by the Governor’s Executive Order are contained at Government Code Section 54953(b)(3) and require that when teleconferencing is used, outside of a statewide emergency, that the following occur:
• An agenda is required to be posted at all locations, including any teleconference locations • Each teleconference location must be identified on the actual agenda • Each teleconference location shall be accessible to the public • A quorum of the legislative body must be in the jurisdiction With the Governor’s Executive Order, the four above requirements were suspended allowing Councilmembers to not have to post an agenda at their teleconference location, not have to identify their location on the meeting agenda, not have to ensure public accessibility at the teleconference location, and the legislative body did not need a quorum in the jurisdiction. This has allowed the City Council, Administrative Hearing Panel, Architecture and Design Review Board, Citizens Communication Advisory Committee and Financial Advisory Committee meetings to be conducted by Zoom with Councilmembers, board/committee members and staff joining from remote virtual locations.
The suspension of certain provisions of the Brown Act was further extended by the Governor on June 11, 2021 by the issuance of Executive Order N-08-21 which continued to allow for complete virtual meetings until September 30, 2021.
With the expiration of the Governor’s Executive Order along with the uncertainty that surrounded the Governor’s potential recall, the State Legislature also took the remote meeting issue into its own hands through the adoption of Assembly Bill 361, which is explained in more depth in the Analysis section below.
On October 11, 2021, the City Council adopted Resolution No. 21-87, making findings that state or local officials continue to recommend social distancing measures to prevent the spread of COVID19 and including reference in particular to Cal-OSHA regulation 3205 which recommends physical -279-
Agenda Staff Report - Hillsborough City Council
August 08, 2022
distancing in the workplace. The adoption of this resolution was consistent with enacted Assembly Bill (AB) 361.
The City Council reconfirmed the findings of Resolution No. 21-87 on November 8, 2021, November 22, 2021, December 13, 2021, January 10, 2022, February 14, 2022, March 14, 2022, April 11, 2022, May 9, 2022, June 13, 2022 and July 11, 2022 as required by AB 361.
On March 14, 2022, the City Council also provided direction to staff on a planned hybrid meeting approach beginning with the April 11, 2022 City Council meeting.
ANALYSIS
On September 16, 2021, the Governor signed AB 361, which allows legislative bodies to meet virtually provided there is a state of emergency declared by the Governor, and either (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees.
At this time, staff is recommending a reconfirmation of the findings contained in Resolution No. 21- 87 to ensure that there is no gap in the ability of the City Council, boards and committees to attend virtually as necessary.
FISCAL IMPACT: The City Council’s approval of a motion to continue with virtual meetings will maintain the status quo and no financial impact is anticipated by approval of the motion. The move to hybrid meetings required additional technical equipment which has been purchased and installed.
ENVIRONMENTAL ISSUES: The City Council’s reconfirmation of the findings is not a project under the California Environmental Quality Act (CEQA) Guideline 15378(b)(5) as it constitutes an organizational or administrative activity of the government that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS: Resolution No. 21-87
PREPARED BY: Christopher J. Diaz, City Attorney
RECOMMENDATION: Approve a motion to reconfirm the findings and determinations made in Resolution No. 21-87 pursuant to Assembly Bill 361, with acknowledgment that the California Department of Public Health has updated the definition of “close contact” in Regulation 3205 from being within six feet of another person to sharing the same indoor space with another person for 15 minutes or more, which further supports the findings. -280-
RESOLUTION NO. 21-87
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH MAKING FINDINGS AND DETERMINATIONS UNDER AB 361 FOR
THE CONTINUATION OF VIRTUAL MEETINGS FOR ALL LEGISLATIVE BODIES WHEREAS, the Ralph M. Brown Act (Gov. Code§ 54950 et seq.) generally requires local agencies meeting via teleconference, including through other virtual or electronic means, to, among other things, provide public access at each location in which members of the legislative body are teleconferencing; and
WHEREAS, the Legislature recently enacted Assembly Bill 361 (AB 361 ), which amended Government Code section 54953 to allow local agencies to meet fully virtually, without fully adhering to the rules otherwise applicable to teleconferencing, during a proclaimed state of emergency if state or local officials have imposed or recommended measures to promote social distancing; and
WHEREAS, the Governor issued a proclamation declaring a state of emergency on March 4, 2020 due to the COVID-19 pandemic, pursuant to section 8625 of the California Emergency Services Act, and this proclaimed state of emergency currently remains in effect; and
WHEREAS, the City Council of the Town of Hillsborough has considered the circumstances of the state of emergency; and
WHEREAS, state or local officials continue to recommend measures to promote social distancing to prevent the spread of COVID-19, in particular, Cal-OSHA regulation 3205 recommends physical distancing in the workplace generally and regulates a "close contact" defined as being within 6 feet of another under certain circumstances; and
WHEREAS, in order to continue to impose social distancing while holding in-person meetings there is a high likelihood that members of the public would not all be able to be present in the meetings spaces; and
WHEREAS, the continuation of virtual meetings will allow for full participation by members of the public until social distancing recommendations are no longer necessary; and
WHEREAS, the City Council of the Town of Hillsborough desires that all Town legislative bodies continue to hold virtual meetings pursuant to AB 361 and Government Code section 54953(e).
NOW, THEREFORE BE IT RESOLVED that the City Council of the Town of Hillsborough hereby finds, determines, and resolves as follows:
-281-
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. The City Council and all other legislative bodies of the Town of Hillsborough who are required to hold open and public meetings, shall continue to meet virtually in accordance with Government Code section 54953(e) and without compliance with section 54953(b)(3) based upon the findings and determinations hereby made by the City Council.
3. This resolution shall become effective upon adoption.
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 11th day of October 2021, by the following vote of the members thereof:
AYES: Councilmembers Royse, Kralik, Chuang, Cole
NOES: Councilmembers None
-------------------
ABSENT: Councilmembers Ma
-~-----------------
ABSTAIN: Councilmembers None
-------------------
-282-
TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
5 CONSENT CALENDAR
CITY COUNCIL MEETING
AUGUST 08, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING THE PURCHASE OF ONE REPLACEMENT
PUBLIC WORKS VEHICLE
SUMMARY: The Public Works Department was scheduled to replace one water testing unit van for the Water Division in the FY 2021-22. The vehicle scheduled to be replaced was Water #305, and the proposed replacement vehicle was a Ford E-Transit Cargo Van T-350. On February 14, 2022 the City Council approved this purchase. Per the staff recommendation, the purchase was awarded to the National Auto Fleet Group, which was sourced via the Town's Sourcewell cooperative purchase agreement.
Months after placing the order, we were made aware by the National Government Sales Manager for National Auto Fleet Group that due to the compounding effects of a global microchip shortage and major disruptions in the supply chain, they would not be able to build the pre-ordered 2022 vehicles. In addition, due to record inflation they would not be able to guarantee price protection on our model year 2022 order and that model year 2023 E-Transits were now being built, resulting in a price increase. Given these circumstances, re-bids for the E-Transit Van were requested to procure the lowest bid vehicle available as these are now 2023 model year vehicles.
Due to the current supply chain shortage of goods and services, vendors are not able to guarantee a timely production and delivery date. Therefore, we are including a 10% contingency in addition to the original quote prices in preparation for potential cost increases.
Water Division Vehicle Replacement:
Three dealerships were contacted via email and invited to submit proposals: Downtown Ford Sacramento, Fremont Ford, and Town Ford Redwood City. Fremont Ford is the only dealership that responded with a quote. Staff also solicited a quote through the Town's Sourcewell cooperative agreement (National Auto Fleet Group).
Manufacturer Price per E-Transit Van
National Auto Fleet Group $68,407.28 ($62,188.44 + 10%) Fremont Ford $76,932.31 ($69,938.46 + 10%)
Staff recommends purchasing one Ford E-Transit Cargo Van T-350 from National Auto Fleet Group via the Town's Sourcewell cooperative agreement for $68,407.28.
FISCAL IMPACT: There are existing funds in the Public Works Vehicle Capital Replacement Fund for the replacement vehicles. Ford electric vehicles may be eligible to receive a Federal Tax Credit -283-
Agenda Staff Report - Hillsborough City Council
August 08, 2022
of up to $7,500 each. Further grants available through California Air Resources Board, Congestion Mitigation Air Quality Funds, and the California Clean Fuel reward program will also be applied for.
ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS: Resolution
PREPARED BY: Sara Bachmann, Senior Management Analyst
RECOMMENDATION: Adopt the resolution approving the purchase of one Public Works vehicle, a Ford E-Transit Cargo Van T-350, as a replacement for the current Sprinter Van and allocate funds from the Public Works Vehicle Capital Replacement Fund. -284-
RESOLUTION NO. 22-
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH
APPROVING THE PURCHASE OF ONE REPLACEMENT PUBLIC WORKS VEHICLE WHEREAS, the City Council of the Town of Hillsborough (“Town”) approved Public Works vehicle capital replacement funding for FY 2021-22 in the amount of $823,000; and
WHEREAS, pursuant to the Town’s Purchasing Policy, for a purchase of this amount, the Town is required to conduct a formal RFP; and
WHEREAS, in lieu of conducting a formal RFP, the Town is opting to make use of an existing procurement conducted by Sourcewell and purchase the vehicle through Sourcewell as a Cooperative Purchase; and
WHEREAS, Town staff believes the existing procurement conducted by Sourcewell is generally similar and consistent with the Town’s requirements imposed by the Town’s Purchasing Policy, thereby ensuring the Town is obtaining the best pricing as part of this cooperative arrangement; and WHEREAS, the Public Works Department received a quote through the Town’s Sourcewell cooperative purchasing agreement for a Ford E-Transit Cargo Van T-350 from National Auto Fleet Group in the amount of $68,407.28.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves the purchase of one Ford E-Transit Cargo Van T-350 via Sourcewell from National Auto Fleet Group for $68,407.28 allocating funds from the Public Works Vehicle Capital Replacement Fund.
Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of August 2022, by the following vote of the members thereof:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-285-
TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
6 CONSENT CALENDAR
CITY COUNCIL MEETING
AUGUST 08, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING THE PURCHASE OF TWO REPLACEMENT
PUBLIC WORKS VEHICLES
SUMMARY: The Public Works Department is scheduled to replace one Forklift and one Administrative/Engineering Vehicle in FY 2022-23. The vehicles scheduled to be replaced are HPW Forklift #E3 and Admin #122.
Forklift #E3 is assigned to the Water division and Admin #122 is assigned to the Administrative/Engineering division. The Admin #122 vehicle, a Ford Fusion, will be replaced with an electric Chevy Bolt EUV.
Due to the current supply chain shortage of goods and services, vendors are not able to guarantee a timely production and delivery date. Therefore, we are including a 10% contingency in addition to the original quote prices in preparation for potential cost increases.
Water Division Vehicle Replacement:
Three dealerships were contacted via email and invited to submit proposals. The dealerships are Pape Forklift, Patterson Lift Trucks, and Raymond Forklifts. Pape Forklift and Patterson Lift Truck responded with proposals for a propane powered forklift. Pape also responded with a proposal for an electric powered forklift.
Manufacturer
Pape Forklift (Propane)
Price per Forklift
$46,710.40 ($42,464.00 + 10%)
Patterson Lift Trucks (Propane)
Pape Forklift (Electric)
$47,095.35 ($42,995.77 + 10%)
$84,700.00 ($77,000.00 + 10%)
Patterson Lift Trucks included 7.88% sales tax rather than the current 9.375% sales tax, which adds $782.88 to the price for a total of $47,878.23.
Pape Forklift proposals did not include the current 9.375% sales tax, which adds $4,379.10 to the propane model for a total cost of $51,089.50 and $7,940.62 to the electric model for a total cost of $92,640.62.
Administrative/Engineering Vehicle Replacement:
Three dealerships responded via email and one submitted a formal proposal: Fremont Chevrolet, San Jose Chevrolet, and Boardwalk Chevrolet. Fremont Chevrolet responded with quotes for a 2022 model as well as a 2023 model. San Jose Chevrolet and Boardwalk Chevrolet did not respond with quotes.
-287-
Agenda Staff Report - Hillsborough City Council
August 08, 2022
Dealership
Fremont Chevrolet (2022 model)
Fremont Chevrolet (2023 model)
Price per Bolt EUV
$31,014.50 ($28,195.00 +10%)
$37,944.50 ($34,495.00 + 10%)
Fremont Chevrolet proposals did not include the 9.375% sales tax, which adds $2,907.61 to the price of the 2022 model for a total of $33.922.11 and $3,557.30 to the 2023 model for a total of $41,501.80. The bid submitted by Fremont Chevrolet is consistent with the online direct price offered by Chevrolet, and included an additional $1,750 Government rebate. If available, we will ask the dealer for the 2022 model.
Staff recommends purchasing one forklift from Pape for $46,710.40 and one 2023 Bolt EUV from Fremont Chevrolet for $37,944.50. The total cost for the two vehicles is $84,654.90.
FISCAL IMPACT: There are existing funds in the Public Works Vehicle Capital Replacement Fund for the replacement vehicles.
ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS: Resolution
PREPARED BY: Sara Bachmann, Management Analyst
RECOMMENDATION: Adopt the resolution approving the purchase of two replacement Public Works vehicles, one replacement forklift and one replacement Chevy Bolt EUV and allocate funds from the Public Works Vehicle Capital Replacement Fund. -288-
RESOLUTION NO. 22-
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH
APPROVING THE PURCHASE OF REPLACEMENT PUBLIC WORKS
CONSTRUCTION VEHICLES IN THE AMOUNT OF $84,654.90
WHEREAS, the City Council of the Town of Hillsborough (“Town”) approved capital Public Works vehicle capital replacement funding for FY 2022-23 in the amount of $614,000.00; and
WHEREAS, the Public Works Department invited competitive bids from three qualified heavy equipment manufacturers for the purchase of one Forklift, and invited competitive bids from three qualified dealerships for one Bolt EUV; and
WHEREAS, the Public Works Department received proposals from two qualified heavy equipment manufacturers and one qualified dealership; and WHEREAS, Pape Forklift submitted the lowest bid in the amount of $46,710.40 for one Forklift, and Fremont Chevrolet submitted the lowest bid in the amount $37,944.50 for one Chevy Bolt EUV for a total amount of $84,654.90.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves the purchase of two Public Works Vehicles, one Forklift and one Bolt EUV, in the amount of $84,654.90, allocating funds from the Public Works Vehicle Capital Replacement Fund.
Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of August 2022, by the following vote of the members thereof:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-289-
TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
7 CONSENT CALENDAR
CITY COUNCIL MEETING
AUGUST 08, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION ACCEPTING AS COMPLETE THE CONTRACT WITH 3D TECHNOLOGIES, INC. TO INSTALL AND MAINTAIN A SALTO ACCESS AND SECURITY SYSTEM IN THE AMOUNT OF $312,829
SUMMARY: This project consisted of installing and maintaining a Salto Access and Control System for all Public Works facilities in accordance with US EPA Americas Water Infrastructure Act of 2018 (AWIA).
On December 14, 2020, the City Council approved an agreement with 3D Technologies, Inc. for the installation and maintenance of a Smart Salto Access and Control System for Public Works Facilities in the amount of $270,671 after a Request for Proposals process, pursuant to a professional services agreement. On May 9, 2022, the City Council approved an amendment to the contract in the amount of $42,158, for a total not-to-exceed amount of $312,829, due to unforeseen conditions and desired system improvements. The project and system improvements were fully completed in July 2022 after unavoidable delays due to supply chain and equipment availability issues.
FISCAL IMPACT: The project was awarded by City Council in December 2020 and amended by City Council in May 2022, with a total construction budget of $312,829. The project was successfully completed in the amount of $312,829, which is the authorized budget. Funding for the project was allocated to the FY 2020-21 and FY 2021-22 CIP Public Works Facilities budget.
ENVIRONMENTAL ISSUES: This project is categorically exempt from the California Environmental Quality Act (CEQA) according to Section 15301 of the California Code of Regulations.
ATTACHMENTS: Resolution
PREPARED BY: Paul Willis, Director of Public Works
RECOMMENDATION: Adopt the resolution accepting as complete the contract with 3D Technologies, Inc. to install and maintain a Salto access and security system in the final amount of $312,829, and authorizing staff to file a Notice of Completion for the project and release withheld retention in accordance with state prompt payment laws. -291-
RESOLUTION NO. 22-
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH ACCEPTING AS COMPLETE THE CONTRACT WITH 3D TECHNOLOGIES, INC. TO
INSTALL AND MAINTAIN A SALTO ACCESS AND SECURITY SYSTEM IN THE AMOUNT OF $312,829
WHEREAS, the Town of Hillsborough ("Town") operates and maintains various critical public works facilities including the Town's water distribution system, sewer lift stations and the public works corporation yard; and WHEREAS, the Town also manages security and access control for its Public Works water distribution facilities in accordance with US EPA Americas Water Infrastructure Act of 2018 (AWIA); and
WHEREAS, plans and specifications were developed to replace the outdated Public Works access and control system with a smart access and control system; and
WHEREAS, the Project was publicly advertised for request for proposals pursuant to a professional services agreement and the Town received six proposals for the Project; and
\WHEREAS, staff reviewed the proposals and determined 3D Technologies, Inc. was the most qualified proposer; and
\WHEREAS, the project was awarded to 3D Technologies, Inc. on December 14, 2020 in the amount of $270,671; and
WHEREAS, funding was allocated from FY 2020-21 CIP Public Works Facilities Budget (CIP #515.00); and
WHEREAS, a notice to proceed was issued to 3D Technologies, Inc.; and WHEREAS, on May 9, 2022, the City Council approved an amendment to the contract in the amount of $42,158, for a not-to-exceed amount of $312,829, due to unforeseen conditions and desired system improvements.
WHEREAS, the Project and system improvements were fully completed in the amount of $312,829 in July 2022 after unavoidable delays due to supply chain and equipment availability issues.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby accept as complete the contract with 3D Technologies, Inc. for the Salto Security Access and Control Project, the final amount of which is $312,829 and authorizes staff to file a Notice of Completion for the project and directs staff to release withheld retention in accordance with state prompt payment laws.
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2 Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of August 2022, by the following vote of the members thereof:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
8 NEW BUSINESS
CITY COUNCIL MEETING
AUGUST 08, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: DESIGNATION OF A VOTING DELEGATE AND ALTERNATE VOTING DELEGATE(S) TO THE 2022 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE SEPTEMBER 7-9, 2022
SUMMARY: The League of California Cities/Cal Cities Annual Conference will be held September 7-9, 2022 at the Long Beach Convention Center. An important part of the Annual Conference is the Annual Business Meeting during General Assembly on Friday, September 9, 2022 at 12:30 p.m. At this meeting, Cal Cities membership considers and takes action on resolutions that establish Cal Cities policy. This meeting is an opportunity for city/town officials to directly participate in the development of Cal Cities policy, a key part of the legislative effectiveness of Cal Cities.
Resolutions approved by the General Assembly become Cal Cities policy.
In order to vote at the Annual Business Meeting, the City Council must designate by City Council action a delegate and up to two alternate voting delegates to attend the meeting and represent the Town. The designees must be registered attendees of the conference. In order to cast a vote, at least one voter must be present at the business meeting and in possession of the voting delegate card.
Following City Council action, the City Clerk will submit to Cal Cities the required Voting Delegate/Alternate Form.
FISCAL IMPACT: There is no significant fiscal impact associated with this agenda item.
ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS:
1. Annual Conference Voting Procedures
2. Voting Delegate/Alternate Form
PREPARED BY: Lisa Natusch, City Clerk
RECOMMENDATION: Designate a voting delegate and alternate(s) for the 2022 League of California Cities/Cal Cities Annual Conference Annual Business Meeting on Friday, September 9, 2022.
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1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org Annual Conference Voting Procedures
1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.
2. Designating a City Voting Representative. Prior to the Annual Conference, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the Cal Cities Credentials Committee.
3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk in the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting.
4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the Credentials Committee at the Voting Delegate Desk, may sign petitions to initiate a resolution.
5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and be registered with the Credentials Committee. The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official who is neither a voting delegate or alternate.
6. Voting Area at Business Meeting. At the Business Meeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate.
7. Resolving Disputes. In case of dispute, the Credentials Committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the Business Meeting.
ATTACHMENT 1
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CITY:________________________________________
2022 ANNUAL CONFERENCE
VOTING DELEGATE/ALTERNATE FORM
Please complete this form and return it to Cal Cities office by Friday, September 2, 2022. Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates.
To vote at the Annual Business Meeting (General Assembly), voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council.
Please note: Voting delegates and alternates will be seated in a separate area at the Annual Business Meeting. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can be obtained only at the Voting Delegate Desk.
1. VOTING DELEGATE
Name:
Title:
2. VOTING DELEGATE - ALTERNATE 3. VOTING DELEGATE - ALTERNATE Name: Name:
Title: Title:
ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s).
Name: ____________________________________ Email_________________________________ Mayor or City Clerk_________________________ Date____________ Phone________________ (circle one) (signature) Please complete and return by Friday, September 2, 2022 to:
Darla Yacub, Assistant to the Administrative Services Director E-mail: [email protected]; Phone: (916) 658-8254
Town of Hillsborough
ATTACHMENT 2
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
9 DISCUSSION
CITY COUNCIL MEETING
AUGUST 8, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: DRAFT TOWN OF HILLSBOROUGH RHNA 6 HOUSING ELEMENT UPDATE SUMMARY: Per State law, each jurisdiction’s Housing Element (HE) must be updated every eight years to reflect the jurisdiction’s Regional Housing Needs Allocation (RHNA) numbers and demonstrate how the jurisdiction has adequately planned to ensure that there will be enough capacity to meet the projected need. On December 16, 2021, the Association of Bay Area Governments (ABAG) Executive Board adopted the Final Regional Housing Needs Allocation Plan for the San Francisco Bay Area RHNA Cycle 6, known as “RHNA 6” (2023-2031) and the Town’s RHNA 6 allocation is 554 net new housing units. Additionally, as recommended by the California Department of Housing and Community Development (HCD), a “no net loss buffer” has also been added to the Town’s RHNA Cycle 6 allocation. The 20% buffer totals an additional 111 units, for a total of 665 net new housing units that the Town must plan for during the RHNA 6 period.
Beginning in 2020, The Town of Hillsborough conducted a robust public information and engagement campaign to build community consensus and ensure transparency throughout the Housing Element Update process. This included establishment in 2021 of a staff created and appointed 17-member Housing Element Advisory Committee (HEAC) made up of a diverse array of Hillsborough community members, representatives from the Town’s public and private schools, and a representative from the Burlingame Country Club to provide input to staff as it worked to update the Town’s housing element. The Committee has met six times throughout the course of the update process and has provided invaluable feedback to staff that was integral to the development of the Draft Town of Hillsborough RHNA 6 Housing Element Update.
The RHNA 6 Housing Element Update team has prepared a first draft of the Town’s RHNA 6 Housing Element Update, which was presented to the HEAC at their August 2, 2022 meeting and released for a 45-day public review and comment period on August 4, 2022. The public comment period closes on September 19, 2022, after which the project team will, consistent with state law, take 10 business days to consider and incorporate any public comments and submit the draft document to the HCD. Per statute, HCD has 90-days to provide the Town with feedback on the draft, which must be adopted by January 31, 2023.
The update makes the following two key recommendations in order to achieve the Town’s RHNA 6 allocation:
• Accessory Dwelling Units: The update is proposing the continuation of the Town’s successful ADU Ombudsman program and the utilization of a “Safe Harbor” Methodology to project future ADU development trends, resulting in an estimate of 280 net new ADU units to be developed during the RHNA 6 cycle. -299-
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August 8, 2022
• Modifications to Town Development Standards: The update proposes to modify and add to portions of the Town’s Zoning and Subdivision Ordinances, resulting in the following changes:
o Renaming and making modest modifications to the Town’s existing single zoning district (RD-1), resulting in an estimate of 15 net new units. o Establishing a new zoning district for parcels larger than 10-acres in size (RD-2), resulting in an estimate of 171 net new units.
o Establishing a unique zoning district for the Town Hall Campus site to allow for residential development in combination with Town administrative uses (RD-3), resulting in an estimate of 100 net new units.
o Establishing an Affordable Housing Overlay district (O-AH), which relaxes certain development standards in the RD-2 district for projects that meet certain affordability requirements, resulting in an estimate of 100 net new units.
These proposed changes are estimated to accommodate 385 net new units during the RHNA 6 Cycle.
The balance of this report provides a more detailed overview of the RHNA process, followed by a discussion on the two key components of the Draft Town of Hillsborough RHNA 6 Housing Element Update: Proposed Approaches and Sites Inventory.
BACKGROUND
What is a Housing Element?
A certified Housing Element is one of seven mandatory elements of the General Plan. The Housing Element is a chapter of the General Plan that outlines a community's housing plans and the polices the community has in place to ensure that they will achieve their plan's goals. While cities don’t build housing themselves, they do create the rules that affect where housing can be built, how much, and how it gets approved. Per State law, each jurisdiction’s housing element must be updated every eight years to reflect the jurisdiction’s RHNA numbers and demonstrate how the jurisdiction has adequately planned to ensure that there will be enough capacity meet the projected need.
The community’s housing need is determined through the statutorily mandated RHNA process, which assigns the number of housing units, by affordability level, that each jurisdiction must accommodate over the next eight years. As part of this process, HCD identifies the total housing need for the nine-county Bay Area for an eight-year period, also referred to as the Regional Housing Needs Determination (RHND).
ABAG is then responsible for creating a methodology for distributing the RHND across local jurisdictions, resulting in each jurisdiction’s RHNA. Distribution of the RHND includes two key components:
1. Allocation of the total regional housing need across local jurisdictions; and
2. Allocation of those total shares by income categories (i.e., very-low-, low-, moderate-, and above moderate-income).
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Agenda Staff Report – Hillsborough City Council
August 8, 2022
What is Hillsborough’s RHNA 6 Allocation?
On December 16, 2021, the ABAG Executive Board adopted the Final Regional Housing Needs Allocation Plan for the San Francisco Bay Area RHNA Cycle 6, known as “RHNA 6” (2023-2031).
The Town’s RHNA 6 allocation is 554 net new housing units. Table 1 shows the Town’s final RHNA allocation by household income category for the 2023-2031 planning period:
TABLE 1: Town of Hillsborough RHNA 6 Unit Allocation
Income Level RHNA 6 Allocation
Very Low Income (0-50% AMI) 155
Low Income (51-79% AMI) 89
Moderate Income (80-119% AMI) 87
Above Moderate Income (120% AMI+) 223
TOTAL: 554
What is a “No Net Loss” Buffer?
To expand the supply of housing, including affordable housing, and to ensure jurisdictions do not take actions to reduce the potential capacity for new development, the Legislature adopted the No Net Loss Law in 2002. The No Net Loss Law ensures that a jurisdiction maintains a sufficient supply of adequate sites in the Housing Element sites inventory throughout the RHNA planning period. This law was amended by Chapter 367, Statutes of 2017 (Senate Bill 166), which requires sufficient adequate sites to be always available to meet a jurisdiction’s remaining unmet housing needs for each income category. To comply with the No Net Loss Law, as jurisdictions make decisions regarding zoning and land use, or development occurs, jurisdictions must assess their ability to accommodate new housing on the remaining sites in their Housing Element site inventories. A jurisdiction must add adequate sites if land use decisions or development results in a shortfall of sufficient sites to accommodate its remaining housing need for each income category.
As recommended by the HCD, a “no net loss” buffer has been added to the Town’s RHNA Cycle 6 allocation. This buffer provides coverage for the Town in the instance that one or more sites do not develop as forecasted. HCD recommends that this buffer equal 20% of the Town’s total RHNA 6 allocation and that it be distributed between income levels in the same percentages as the primary RHNA allocation. The 20% buffer totals an additional 111 units, the income level breakout of which is detailed in Table 2, below.
TABLE 2: Town of Hillsborough RHNA 6 Allocation + “No Net Loss Buffer” and Income Distribution
Income Level RHNA 6
Allocation
20% “No Net Loss”
Buffer by Income
Level
RHNA 6 Allocation +
“No Net Loss” Buffer
Very Low Income
(0-50% AMI) 155 33 188
Low Income
(51-79% AMI) 89 17 106
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Agenda Staff Report – Hillsborough City Council
August 8, 2022
Moderate Income
(80-119% AMI) 87 17 104
Above Moderate Income
(120% AMI+) 223 44 267
TOTAL: 554 111 665
What Happens if the Town Decides Not to Follow State Statute? The potential consequences for failing to adopt a compliant Housing Element are severe. Litigation may be brought by any interested party (Gov. Code 65587(b)) or the office of the Attorney General (Gov. Code 65585). Additionally, as part of the 2021-2022 state budget, HCD received additional funding to expand its enforcement capability. HCD has since established the Housing Accountability Unit (HAU), which will be responsible for holding jurisdictions accountable for their housing element commitments.
If a court finds that the jurisdiction’s HE is inadequate, it must include one or more of the following remedies in its order:
• Suspension of the jurisdiction’s authority to issue building permits or related permits prior to the issuance of such permits for housing projects;
• Suspension of the jurisdiction’s authority to grant zoning changes, variances, and map approvals;
• Mandated approval of residential housing projects.
In suits brought by the office of the Attorney General, a court is required to impose fines on jurisdictions that refuse to adopt a compliant Housing Element. These fines range from a minimum of $10,000 per month up to $600,000 per month. If a jurisdiction has not adopted a compliant Housing Element within 18 months following a court order, the court may appoint a receiver to take all governmental actions necessary to bring the jurisdiction’s Housing Element into compliance. (Gov. Code 65585). Additionally, certain State funding programs are tied to having a compliant Housing Element, including SB 1 (Sustainable Community Planning Grants) and SB 2 (Planning Grants and Permanent Local Housing Allocation, etc.). Funding related to these programs will be suspended until the jurisdiction becomes compliant. Finally, late submittal of an updated Housing Element can result in a jurisdiction being required to update on a four-year cycle as opposed to the current eight-year cycle.
Can We Work with our Neighboring Jurisdictions to Share our Allocation? In general, the State does not allow municipalities to combine RHNA obligations. The only option for this possibility is through the establishment of a "subregion" where geographically contiguous jurisdictions in the region may partner to conduct an allocation process that parallels, but is separate from, the regional process. This "subregion" establishment must be completed a minimum of 28 months in advance of the region's housing element certification deadline. The ABAG region’s certification deadline is January 31, 2023, meaning formal establishment and approval of a subregion would have needed to be complete by September 2020.
Jurisdictions in Southern California are a year ahead of Bay Area Jurisdictions in the RHNA 6 process, giving Bay Area jurisdictions the opportunity to watch the RHNA 6 process roll out advance of the process beginning here. There was a substantial increase in RHNA 6 allocations -302-
Agenda Staff Report – Hillsborough City Council
August 8, 2022
assigned to Southern California jurisdictions over RHNA 5 and given this change most Bay Area jurisdictions opted to forego the formation of a subregion amid so much uncertainty. One subregion was formed in Solano County; however, none of the Town’s neighboring jurisdictions in San Mateo County expressed interest.
Once the deadline passes for subregion establishment, the option is no longer available, and each jurisdiction is responsible for accommodating their own allocation.
Who Has Contributed to the Development of the Town’s Draft Housing Element? A variety of entities have contributed to the development of the Town’s Draft RHNA 6 Housing Element, as outlined below:
1) Consultants
• Baird & Driskell (via 21 Elements): In October 2020, Council authorized the Town to enter into a cooperative agreement with the County of San Mateo for services related to the Housing Element Update. Much of the technical regional research and analysis required for the Update was conducted through this agreement, which also included the 20 other county jurisdictions and is staffed by the planning firm of Baird + Driskell through the 21 Elements project.
• Houseal Lavigne Associates: In March 2021, the Town issued a Request for Proposals (RFP) soliciting proposals from planning consultants who were qualified to assist the Town in undertaking the Housing Element Update. Proposals were evaluated based on firm experience, qualifications, approach to organization and project management, and positive professional references. The planning firm of Houseal Lavigne Associates was selected based on their previous experience with developing housing element updates for communities similar in size, land use, and make-up; their experience with targeted, community specific outreach; and their expertise with drafting ordinance amendments.
They are supported by a bench of subconsultants who specialize in specific portions of the Housing Element, including safety, environmental and fair housing issues. 2) Technical Advisory Committee
In 2021, an internal technical advisory committee (TAC) was established, made up of a representative from each Town Department. The purpose of the TAC is to contribute departmentspecific insight into the Housing Element Update and to participate as content experts during the Housing Element Advisory Committee meetings.
3) City Council Subcommittee
At the September 13, 2021 City Council meeting, a non-legislative, ad-hoc Housing Element Update City Council Subcommittee was established to ensure that staff are supported in achieving the directive to protect the Town’s unique character while simultaneously meeting the statutory timeline for Housing Element Update certification. Vice Mayor Krolik and Councilmember Cole make up the Council Housing Element Update Subcommittee. 4) Housing Element Advisory Committee
A 17-person ad-hoc advisory committee to the Director of Building and Planning was formed to advise staff on the development of the Housing Element update. The Housing Element Advisory Committee (HEAC) is comprised of Town residents with a broad range of perspectives, ages, -303-
Agenda Staff Report – Hillsborough City Council
August 8, 2022
abilities, and backgrounds. HEAC members were selected through an application process that was widely advertised and open to all residents of Hillsborough.
The Committee has met six times throughout the course of the update process and has provided invaluable feedback to staff that was integral to the development of this document. One additional meeting is planned prior to the end of the year.
5) Hillsborough Community
The Town developed a multifaceted outreach approach to ensure that the Hillsborough community was aware of and can contribute to the development of the Housing Element Update document. In addition to the establishment of the HEAC discussed above, between May 2020 through August 2022 the Town has:
• Hosted 40 meetings open to the public where the update was discussed (City Council, Board and Commission meetings, workshops, HEAC meetings, etc.). • Hosted a comprehensive project website which includes a variety of surveys and questionnaires, an online mapping tool, recordings and materials from each meeting of the Housing Element Advisory Committee and each City Council, and City Board and Commission meeting where this project was discussed.
• Established a Housing Element Update email list
• Distributed project information via the Town’s “e-announcements” electronic newsletter • Sent community-wide mailings
• Contributed articles to the Town’s paper newsletters which are mailed to all Hillsborough residents, the Hillsborough City School District’s newsletter, and Hillsborough Living.
Feedback received through these many avenues helped to form the foundation of the policies, programs, actions, and identification of the housing opportunity sites described in the Housing Element Update document. Specific outreach metrics are outlined below:
• Electronic and Mailed Communications
o 76 e-announcements (electronic)
o 4 Town Newsletter articles (paper; sent to all Hillsborough residents) o 1 Hillsborough Living article (paper and electronic)
o 1 informational handout (paper; distributed at Light Up the Town, Celebrate May, and available at the public information counter at Town Hall and the Hillsborough Police Department)
o 2 post cards (paper; sent to all Hillsborough residents) o 7 invitations to participate in the public review process sent Hillsborough City School District (HCSD) families (electronic; via the HCSD newsletter) • Virtual Engagement1
o 2 community-wide questionnaires (online)
o 7 Housing Element Advisory Committee meetings (one upcoming) o 15 City Council Subcommittee meetings
o 11 City Council Meetings
o 1 Architecture and Design Review Board (ADRB) Meeting o 3 Citizen Communications Advisory Committee (CCAC) Meetings 1 As the RHNA 6 Housing Element Update process timeline coincided with the COVID-19 pandemic, much of the Housing Element Outreach occurred in a virtual setting.
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Agenda Staff Report – Hillsborough City Council
August 8, 2022
o 1 community-wide virtual Visioning Workshop
o 1 community-wide virtual Open House (upcoming)
• In-Person Engagement
o 2 in-person Open Houses (upcoming: August 18, 2022 and September 6, 2022) Additionally, a 45-day public review and comment period opened on August 4, 2022, allowing the public to review the draft document and provide feedback on the Town’s proposed approach.
While state law only requires a 30-day public review and comment period, the Town has opted to increase this to 45-days to increase the opportunity for community input. 6) Town Staff
In addition to the Technical Advisory Committee described above, Town staff from the Building and Planning Department and City Manager’s Office have provided project management support to the Housing Element update effort.
What is Required to be Included in the RHNA 6 Housing Element? Per statute, the RHNA 6 Housing Element is required to include the following sections:
1. Introduction: Outlines the purpose of the housing element and history of the Town.
2. Public Participation: Summarizes the Town’s community engagement efforts to achieve diverse public participation of the community.
3. Review and Revision of Past Performance: Evaluates the housing programs and quantified objectives outlined in the past Housing Element and the Town’s efforts in meeting the program requirements and achieving the quantified objectives.
4. General Plan Consistency: Evaluates whether the Housing Element is consistent with the goals and policies set forth by the General Plan.
5. Housing Needs Assessment: An analysis of current demographic and housing trends and conditions.
6. Housing Constraints: Summarizes governmental and non-governmental constraints on production, maintenance, and affordability of housing.
7. Housing Resources: Summary of housing production, available land, and RHNA.
8. Sites Inventory, Analysis, and Zoning: Identifies candidate sites available for net-new housing development, by income category, to meet the town’s RHNA.
9. Affirmatively Furthering Fair Housing (AFFH): Summary of findings from the Town’s Fair Housing Assessment and the Town’s fair housing action plan.
10.Housing Plan: Summarizes Housing Policies, Programs, and Actions.
DISCUSSION
In consideration of the background information provided above, the Town has developed an initial draft of the Town of Hillsborough RHNA 6 Housing Element Update. This document includes the statutorily required sections outlined above and outlines the approach that the Town proposes to take to accommodate its RHNA 6 allocation. Upon the closing of the public comment period on September 19, 2022, the project team will, consistent with state law, take 10 business days to consider and incorporate any public comments and submit the draft document to HCD. Per statute, HCD has 90-days to provide the Town with feedback on the draft, which must be adopted by January 31, 2023.
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Agenda Staff Report – Hillsborough City Council
August 8, 2022
What Approaches are Proposed to Accommodate the Town’s RHNA 6 Allocation? The Draft Town of Hillsborough RHNA 6 Housing Element Update proposes the utilization a multipronged approach to accommodating the RHNA 6 allocation of 665 units (RHNA 6 units + 20% “no net loss” buffer), as follows:
1. Further development of Accessory Dwelling Units (ADUs)
2. Amendments to the Town’s zoning and subdivision standards to provide increased residential development opportunities.
An overview of these approaches is discussed in the sections below. Additional detail on each of these approaches is included in the Sites Inventory Analysis section of the Draft Town of Hillsborough RHNA 6 Housing Element Update attached to this staff report.
Approach # 1: Promotion of Accessory Dwelling Units
Approach Overview
To accommodate a significant portion of its RHNA 6 allocation and related no net loss buffer, the update proposes to continue to promote ADU development via the Town’s existing ADU Ombudsman Program to provide increased residential development opportunities within Hillsborough.
ADU APPROACH & OUTCOME
The update is proposing the continuation of the Town’s successful ADU Ombudsman program and the utilization of a “Safe Harbor” Methodology to project future ADU development trends, resulting in an estimate of
280 net new ADUs to be developed during the RHNA 6 cycle.
The Town of Hillsborough has a strong track record of supporting and encouraging accessory dwelling unit (ADU) development. In response, the Town has seen a significant uptick in ADU development applications during RHNA Cycle 5. The Town’s ADU Permits Issued by year for the years between 2014-2022 (June) are outlined in Table 3, below.
TABLE 3: ADU Building Permits Issued by Year (RHNA Cycle 5) Year # of ADU Building Permits Issued
2014 16
2015 39
2016 10
2017 18
2018 16
2019 20
2020 25
2021 64
2022 (Jan-June) 28
To support this trend and facilitate further ADU development, in 2020 the Town established an ADU Ombudsman program staffed by an ADU Specialist specifically trained to guide people -306-
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August 8, 2022
through the Town’s ADU review and approval processes. Since the establishment of this program, on average, ADU development has more than doubled (January 2019-June 2022).
Approach Details
HCD and ABAG have provided general direction regarding a “safe harbor” methodology that jurisdictions may use to estimate how many ADUs are likely to be developed in the RHNA 6 cycle, and how to distribute those units among the various RHNA income categories. This “safe harbor” methodology is outlined in Table 4, below.
TABLE 4: ADU Safe Harbor Methodology – RHNA 6
Topic “Safe Harbor” Assumptions
Number of ADUs
• Determine the average number of ADUs permitted in the last three years
• Multiply that average by the eight years in the RHNA cycle for estimated 8-year total
Income Category
Distribution2
• Very Low Income: 30%
• Low Income: 30%
• Moderate Income: 30%
• Above Moderate Income: 10%
Utilizing this ADU approach, the Town can accommodate 280 units of its RHNA 6 allocation.
Approach Outcome
Table 5, below, summarizes the Town’s ADU income level breakdown, including the 20 percent “no net loss” buffer. The table also demonstrates the remaining delta of the RHNA 6 and no net loss allocations, after accounting for the “safe harbor” ADU projections.
TABLE 5: RHNA 6 ADU Approach
Income Level
RHNA 6 Allocation
& 20% “No Net
Loss” Buffer
Minus
ADUs
Remaining Units to
be Accommodated
Very Low Income
(0-50% AMI) 188 84 104
Low Income
(51-79% AMI) 106 84 22
Moderate Income
(80-119% AMI) 104 84 20
Above Moderate Income
(120% AMI+) 267 28 239
TOTAL: 665 280 385
2 Methodology established by the Association of Bay Area Governments (ABAG) -307-
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Approach #2: Amendments to the Town’s Zoning and Subdivision Ordinances to Provide Increased Residential Development Opportunities
Approach Overview
To accommodate the remaining RHNA 6 allocation and related no net loss buffer, the update proposes to make amendments to the Town’s zoning and subdivision standards to provide increased residential development opportunities within the Hillsborough community.
ORDINANCE AMENDMENT APPROACH & OUTCOME
The update proposes to modify and rename its existing zoning district, establish two new zoning districts, establish an affordable housing overlay district, and update its subdivision ordinance, resulting in accommodation of 385 net new units to be developed during the RHNA 6 Cycle
Approach Background: Current Development Standards
The Town of Hillsborough currently has one zoning district, Residential District (RD). This zone permits solely single-family residential development and related accessory structures, with permitted, non-residential uses including public and private schools, a country club, a racquet club, various public facilities, utility installations, and open space. The RD standards are detailed in Table 6, below.
TABLE 6: Hillsborough Residence District (RD) Standards RD Residential District Bulk and Dimensional Standards
Lot Standards (Minimum)
Lot Area (acre) 0.5
Lot Width (ft) 150
Yard Setbacks (Minimum)
Front (ft) 25
Street Side (ft) 25
Interior Side (ft) 20
Rear (ft) 20
Building Standards (Maximum)
Building Height (ft) 22-32
Floor Area Ratio 0.25
Building and Impervious Surface Coverage 50%
Building Standards (Minimum)
Landscape Coverage 50%
Dwelling Unit Size (sq ft) 2,500
The Town’s subdivision ordinance further defines allowable lot sizes and street frontage requirements upon subdivision, as detailed in Table 7, below. -308-
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TABLE 7: Hillsborough Subdivisions Standards
Subdivision Ordinance Dimensional Standards
Lot Standards (Minimum)
Lot Area (acre) 0.50
Lot Width (ft) 150 (75 at cul-de-sacs)
Approach Details: Proposed Modifications
Proposed modifications to these standards are described below:
a) Residential District 1 (RD-1)
The Town proposes to rename its existing Residence District (RD) to Residential District 1 (RD-1).
The new RD-1 Zoning District is proposed to be applied to all parcels in Hillsborough that are less than 10 acres in area, excluding the Town Hall Campus. Certain Hillsborough neighborhoods currently conform to similar standards such as Hillsborough Oaksbridge. The housing types that are proposed to be allowed in the RD-1 district include single-unit detached dwellings and ADUs/JADUs. The proposed standards of the RD-1 are detailed in Table 8, below.
Table 8: Proposed RD-1 Development Standards
RD-1 Residential District Bulk and Dimensional Standards Lot Standards (Minimum)
Lot Area (acre) 0.33
Lot Width (ft) 100
Yard Setbacks (Minimum)
Front (ft) 25
Street Side (ft) 25
Interior Side (ft) 20
Rear (ft) 20
Building Standards (Maximum)
Building Height (ft) 22-32
Floor Area Ratio 0.25
Building and Impervious Surface Coverage 70%
Building Standards (Minimum)
Landscape Coverage 30%
Dwelling Unit Size (sqft) n/a
Key proposed changes include:
• Lowering the lot area minimum from ½ acre to ⅓ acre
• Lowering the lot width minimum from 150 feet to 100 feet • Increasing the maximum building and impervious surface coverage from 50 percent to 70 percent
• Lowering the minimum landscape coverage from 50 percent to 30 percent • Lowering the minimum dwelling unit size from 2,500 to 800 square feet -309-
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The proposed standards of the new RD-1 zone will allow for more efficient use of land, be more aligned with fire safety best practices, and accommodate additional housing through increased opportunities for subdivision, resulting in 15 net new units. b) Residential District 2 (RD-2)
The Town will establish a new Residential District 2 (RD-2), proposed to be applied to all parcels in Hillsborough which are 10+ acres in area. Housing types proposed to be allowed in the RD-2 zone include single-unit detached dwellings, ADUs/JADUs, duplexes, triplexes, quadplexes, and multiple unit housing (aka “cottage clusters”) restricted to residents 55 years of age or older. The proposed standards of the RD-2 zone are detailed in Table 9, below.
TABLE 9: Proposed RD-2 Development Standards
RD-2 Residential District Bulk and Dimensional Standards Lot Standards (Minimum)
Lot Area (acre) 0.25
Lot Area per Dwelling Unit (acre) 0.125 (1)
Lot Width (ft) 75
Yard Setbacks (Minimum)
Front (ft) 25
Street Side (ft) 25
Interior Side (ft) 10
Rear (ft) 20
Building Standards (Maximum)
Building Height (ft) 45
Floor Area Ratio n/a
Building and Impervious Surface Coverage 80%
Building Standards (Minimum)
Landscape Coverage 20%
Dwelling Unit Size (sqft) n/a
Notes
(1) Multiple unit housing restricted to residents 55 years of age and older shall have a minimum lot area per dwelling unit of 0.062 acres.
Key proposed changes include:
• Lowering the lot area minimum from ½ to ¼ acre
• Establishing minimum lot area per dwelling unit standards as follows:
o 1/8 acre for multi-unit, non-age restricted housing
o 1/16 acre for multi-unit, age restricted housing (55 years +) • Lowering the lot width minimum from 150 feet to 75 feet • Lowering the minimum interior side yard setback from 20 feet to 10 feet • Increasing the maximum building height from 22-32 feet to a maximum of 45 feet • Eliminating the floor area ratio maximum (currently 25%) • Increasing the maximum building and impervious surface coverage from 50% to 80% • Lowering the minimum landscape coverage from 50% to 20% -310-
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• Lowering the minimum dwelling unit size from 2,500 to 800 square feet The proposed standards of the new RD-2 Residential District will allow for more efficient use of land, be more aligned with fire safety best practices, and accommodate additional housing by allowing for higher density housing types and by making the subdivision of large parcels in the community more market feasible, resulting in 171 net new units. c) Residential District 3 (RD-3)
The Town will establish a new Residential District 3 (RD-3), which is proposed to be applied to the Town Hall Campus site. The allowed uses and standards of the RD-3 zone will be informed by the findings of the Town Hall Master Plan, resulting in 100 net new units. d) Affordable Housing Overlay District (O-AH)
The Town of Hillsborough will establish a new Affordable Housing Overlay District (O-AH) which will be applied to all parcels in the new RD-2 Residential District detailed above. Housing types proposed to be allowed in the O-AH district include multi-unit housing which meet established affordability criteria. The proposed standards of the O-AH district are detailed in Table 10, below.
TABLE 10: Proposed O-AH Development Standards
O-AH Affordable Housing Overlay District Bulk and Dimensional Standards Lot Standards (Minimum unless otherwise stated)
Lot Area (acre) 0.5
Lot Area, maximum (acre) 10
Lot Area per Dwelling Unit (acre) 0.05
Lot Area per Dwelling Unit, maximum (acre) 0.04
Lot Width (ft) 75
Yard Setbacks (Minimum)
Front (ft) 20
Street Side (ft) 20
Interior Side (ft) 10
Rear (ft) 15
Building Standards (Maximum)
Building Height (ft) 60
Floor Area Ratio n/a
Building and Impervious Surface Coverage 85%
Building Standards (Minimum)
Landscape Coverage 15%
Dwelling Unit Size (sqft) n/a
The major proposed changes include:
• Establishing a maximum lot area of 10 acres
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• For multi-family housing that meets established affordability criteria, establishing a minimum lot area per dwelling unit requirement of 1/20th acre for non-age restricted units and 1/24th acre for age-restricted (55+) units
• Lowering the lot width minimum from 150 feet to 75 feet • Lowering the minimum front and street side yard setback from 25 feet to 20 feet • Lowering the minimum interior side yard setback from 20 feet to 10 feet • Lowering the minimum rear yard setback from 20 feet to 15 feet • Increasing the maximum building height from 22-32 feet to a maximum of 60 feet • Eliminating the floor area ratio maximum (currently 25%) • Increasing the maximum building and impervious surface coverage from 50% to 85% • Lowering the minimum landscape coverage from 50% to 15% • Lowering the minimum dwelling unit size from 2,500 to 800 square feet The proposed standards of the new O-AH District will allow for more efficient use of land, be more aligned with fire safety best practices, and accommodate affordable housing by allowing for higher density housing types and by making the subdivision of large parcels in the community more market feasible, resulting in 100 net new units.
Approach Outcome
Table 11, below, summarizes the Town’s income level breakdown of amendments to the Town’s Subdivision and Zoning Ordinances, including the 20% “no net loss” buffer and after accounting for the ADU projections discussed above.
TABLE 11: RHNA 6 Ordinance Amendment Approach + ADU Approach Income
Level
RHNA 6 Allocation &
20% “No Net Loss”
Buffer Remaining After
ADUs
Minus Units Achieved
After Updates to
Development Standards
(RD-1, RD-2, RD-3, & OAH)
Remaining Units
to be
Accommodated
Very Low Income
(0-50% AMI) 104 106 2
Low Income
(51-79% AMI) 22 20 (2)
Moderate Income
(80-119% AMI) 20 20 0
Above Moderate
(120% AMI+) 239 239 0
TOTAL: 385 385 0
Why Does the Housing Element Update Propose These Ordinance Changes? The update proposes these ordinance changes for the following reasons:
• The Town must demonstrate to HCD that it has capacity to accommodate its RHNA 6 allocation within Town limits. When using the Town’s current standards, there are not enough feasible development opportunity sites to accommodate the RHNA assignment and the standards need to be updated.
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• Updating of the existing RD Zone, the establishment of two additional zones (RD-2 and RD3) and the establishment of an Affordable Housing Overlay will open opportunities for development of a variety of housing options not currently available in the Hillsborough community, allowing the Town to achieve its RHNA 6 allocation assignment. • Amendments to the Town’s zoning and subdivision standards outlined above will further increase opportunities for the subdivision of parcels and allow for more lots to be established when a subdivision occurs, thereby facilitating the development of additional housing.
• While not the primarily preferred option, updates to the Town’s zoning and subdivision ordinances were positively received by Town’s HEAC.
Where Does the Update Expect these Units to be Developed? The Housing Element must include an inventory of specific sites or parcels that are suitable for residential development and available for use in the planning period to accommodate the RHNA 6 allocation. As such, the update has identified four key opportunity sites for future housing development. One is owned by the Town, one is vacant, and two are non-vacant but significantly underutilized sites that are primary candidates for future housing development.
Methodology
The Town completed a thorough analysis of all parcels in the community to identify housing opportunity sites throughout Hillsborough. The Housing Opportunity Sites were identified utilizing an ArcGIS Urban and ArcGIS Pro process that involved the below steps:
1) Identifying Site Suitability Factors
A series of site suitability factors were identified that either support housing development or minimize opportunities for housing development. The following site suitability factors were identified:
• Proposed Zoning. The proposed base and overlay zoning district designation of parcels was considered in order to inform the development potential of a site. • Existing Land Use. The existing land use of parcels was considered in order to understand the likelihood of the use of parcels for housing.
• Year Built. The year that residences were built was considered in order to identify sites that would likely redevelop during the 8-year RHNA 6 Cycle.
• Lot Acreage. The total area of a parcel was considered to identify parcels between 0.5 acres and 10 acres in area, the lot area deemed most suitable for the development of affordable housing according to the California Department of Housing and Community Development.
• Improvement Ratio. The improvement ratio was calculated by comparing the value of the built features of the site versus the value of the land. This was considered to identify sites more likely to redevelop.
• Vacancy. Whether a site is currently vacant or nonvacant was considered to identify sites available for new development.
• Residual Lot Coverage. Residual lot coverage was calculated by comparing the total lot area with the footprint of buildings. This was considered to identify sites with land area available for subdivision or the development of ADUs.
• Residual Height. Residual height was calculated by comparing the height of existing buildings with the maximum building height allowed by the new zoning districts. -313-
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• Proximity to Amenities. Distance from amenities such as schools, retail areas, job opportunities, and transit was considered to identify highly resourced sites. • Fire Hazard. Much of Hillsborough is located in a high fire hazard severity zone. This was considered to identify sites with minimal fire hazard.
• Slope. Hillsborough has a hilly topography and much of the community has a slope of 30 percent or more. This was considered to identify sites where slope would not be a barrier to the development of affordable housing due to the costs of grading. • Landslide / Liquefaction. Hillsborough is impacted by landslide and liquefaction hazard. This was considered to identify sites where landslide / liquefaction would not be barrier to the development of affordable housing due to the costs of mitigation. 2) Site Suitability Factor Scoring
After the site suitability factors were identified, they were scored on a scale of 1-10, 1 being least suitable for housing and 10 being most suitable for housing. These scores informed the weighted suitability model that was used to evaluate multiple criteria influencing the likelihood of development on a parcel-by-parcel basis. Each property was assigned a total weighted score, where the higher the score the greater the likelihood of development. The table detailing the scores given to each site suitability factor is included on pages 97-98 of the Town of Hillsborough RHNA 6 Housing Element Update attached to this staff report.
Housing Opportunity Sites
As mentioned earlier in this section, a total of four housing opportunity sites were identified through the site suitability analysis, as follows:
• One non-vacant Town-owned site
• Two non-vacant, privately-owned sites, and
• One vacant, privately-owned site
Housing Opportunity Site 1: Town Hall Campus (Non-Vacant Town Owned Site) • Rezone to RD-3
• 100 total units anticipated, 80 affordable (40 very-low income, 20 low-income, 20 moderate income)
The Town of Hillsborough owns an approximately 2.5-acre site near the intersection of Floribunda Avenue and El Camino Real. The site is currently developed with several freestanding buildings housing Town offices and the Hillsborough Police Department (HPD), a small parklet, several parking lots, Town-owned right of way encumbered with underground infrastructure, and a singlefamily home. Additionally, the main Town Hall building serves as a community center and meeting space, hosting various activities and civic events along with Council, committee, and board meetings. The site’s proximity to transit, daily shopping needs, job opportunities, and educational opportunities makes it an ideal location for mixed income housing—including affordable units.
In June 2022 the Town solicited professional planning and design services to assist in the development of a master plan, CEQA analysis, conceptual design documents (including preliminary cost estimate/budget, scope and schedule documents) and related community outreach plan to support future redevelopment of the Town Hall Campus site. The Town anticipates completion of this study in the Fall 2022. Taking into account the needs of the Town Hall and Police Station and other site encumbrances, preliminary study results demonstrate that a minimum of 100 housing units can be accommodated on the site. This preliminary analysis also -314-
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demonstrates that the following affordability breakdown could be feasible when Low Income Housing Tax Credits are considered in the development pro forma:
• Very Low Income: 40%
• Low Income: 20%
• Moderate Income: 20%
• Above Moderate Income: 20%
Since the Town is the owner of the site and is leading the redevelopment effort, the existing use is not deemed an impediment to additional residential development. There are no existing leases or other contracts that would prevent additional residential development. The Town has significant confidence in the feasibility of development of this site during the RHNA 6 Cycle for the following reasons:
• The Town solely owns the Town Hall Campus site, resulting in ability to control future uses and development.
• The site scored highly with the Town’s Housing Element Advisory Committee (HEAC) as a key opportunity site.
• The Town has received direction from City Council to proceed with the Town Hall Campus Study to analyze the site’s feasibility for use as a mixed-use, mixed-income property. • General Fund monies have been assigned by Council in the 2022/23 Town budget to fund the analysis.
• The Town has issued an RFP and is currently under contract with a professional planning and design firm to assist in the development of a master plan, CEQA analysis, conceptual design documents and preliminary cost estimate/budget, scope and schedule documents for a mixed-use, mixed-income redevelopment of the site. • The Town is receiving advice on best practices related to soliciting for and entering into public-private partnerships (P3s).
Additional detail is included on page 99 of the Town of Hillsborough RHNA 6 Housing Element Update attached to this staff report.
Housing Opportunity Site 2: De Guigne Estate (Non-Vacant, Privately Owned) • Rezone to RD-2 with O-AH Applied
• 72 total units anticipated, 48 affordable (very-low income) The De Guigne Estate is a privately owned, nearly 50-acre parcel located between Crystal Springs Road and Parrot Drive along the southeastern border of the Town. The site is planned to be rezoned to the new RD-2 Residential District and have the O-AH Affordable Housing Overlay District applied to it.
Much of the site is impacted by steep slopes which limit access to the majority of the property to one point of entry and exit. Based on access requirements for affordable housing developments, the Update anticipates that a maximum of 24 units may be developed in areas only one point of ingress/egress. Additionally, due to the limited density achievable, all 24 units would be counted as above moderate income.
Another portion of the site can be accessed directly from Crystal Springs Road, and thus is not limited in density by statute as it can provide multiple access points. This area is anticipated to be -315-
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developed according to the standards of the O-AH Affordable Housing Overlay District, and the Update anticipates that a total of affordable 48 units could be built in this location.
Only vacant portions of the De Guigne Estate are identified to accommodate additional housing.
The existing residence and accessory buildings and structures are proposed to remain. Therefore, the existing use is not deemed an impediment to additional residential development. There are no existing leases or other contracts that would prevent additional residential development.
While this site was identified as an opportunity site in RHNA Cycle 5, The Town has significant confidence in the feasibility of development of this site during RHNA Cycle 6 for the following reasons:
• The Town of Hillsborough currently only allows single-family detached housing development at a minimum density of 2 dwelling units per acre. The proposed zoning and subdivision ordinance amendments which are proposed for this site are expected to lead to additional housing units, as:
o Allowing for smaller lots upon subdivision will generate more lots per site. This can result in significant revenue generation for owners of larger sites such as the De Guigne Estate and potentially encourage the division of such larger Hillsborough parcels;
o Allowing for higher residential density on these newly-created, smaller lots will encourage additional housing development;
o Higher density opportunities can create more opportunities for affordable projects to “pencil” for developers.
The detailed analysis and a conceptual land use plan for this site is included on page 100 of the Town of Hillsborough RHNA 6 Housing Element Update attached to this staff report.
Housing Opportunity Site 3: Strawberry Hill (Non-Vacant, Privately Owned) • Rezone to RD-2 with O-AH Applied
• 187 total units anticipated, 52 affordable (very-low income) Strawberry Hill is a privately owned, 50-acre parcel bounded by Skyfarm Drive, Macadamia Drive, and Forest View Avenue in the northern area of Town. The site is planned to be rezoned to the new RD-2 Residential District and have the O-AH Affordable Housing Overlay District applied to it.
Two points of access are currently provided to the site along Redington Road and Macadamia Drive and therefore density is not limited by statute; however, much of the northern portion of the site is impacted by steep slopes thereby limiting the developable area. The Update anticipates that a portion of the lot would be developed with single-family detached homes which would provide a transition between the single-family detached homes to the southwest of Macadamia Drive and the proposed higher density housing planned for the remaining developable area of the lot. The Update anticipates that 15 single-family detached homes could be accommodated on this portion of the site and would be counted as above moderate income.
The Update then anticipates that the remaining developable area of the lot would be developed with 172 units of mixed-income, multi-family housing. Based on the required affordability levels of the new O-AH Affordable Housing Overlay District, 30 percent of these units (52 units) would be -316-
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reserved for very low-income households, while the remaining (120) are anticipated as above moderate income.
Only vacant portions of Strawberry Hill are identified to accommodate additional housing. The existing residence and accessory buildings and structures are proposed to remain. Therefore, the existing use is not deemed an impediment to additional residential development. There are no existing leases or other contracts that would prevent additional residential development.
While this site was identified as an opportunity site in RHNA Cycle 5, The Town has significant confidence in the feasibility of development of this site during RHNA Cycle 6 for the following reasons:
• The Town of Hillsborough currently only allows single-family detached housing development at a minimum density of 2 dwelling units per acre. The proposed zoning and subdivision ordinance amendments which are proposed for this site are expected to lead to additional housing units, as:
o Allowing for smaller lots upon subdivision will generate more lots per site. This can result in significant revenue generation for owners of larger sites such as Strawberry Hill, and potentially encourage the division of such larger Hillsborough parcels; o Allowing for higher residential density on these newly-created, smaller lots will encourage additional housing development;
o Higher density opportunities can create more opportunities for affordable projects to “pencil” for developers.
The detailed analysis and a conceptual land use plan for this site is included on page 101 of the Town of Hillsborough RHNA 6 Housing Element Update attached to this staff report.
Housing Opportunity Site 4: 50 Brooke Court (Vacant, Privately Owned) • Rezone to RD-2 with O-AH Applied
• 12 total units anticipated, all above-moderate income 50 Brooke Court is a privately owned, 10-acre parcel at the end of Brooke Court and adjacent to the College of San Mateo in the southern area of Town. The site is planned to be rezoned to the new RD-2 Residential District and have the O-AH Affordable Housing Overlay District applied to it.
Much of the site is impacted by steep slopes, limiting the feasibility of development on the site to an approximately 1.5 acre area in the northeastern portion of the site. Due to the cost associated with grading the site to provide access, the site is anticipated to be developed with townhomes.
The Update anticipates that 12 townhome units could be accommodated at this site and are anticipated as above moderate income.
The detailed analysis and a conceptual land use plan for this site is included on page 102 of the Town of Hillsborough RHNA 6 Housing Element Update attached to this staff report. • The proposed zoning and subdivision ordinance amendments which are proposed for this site are expected to lead to additional housing units, as:
o Allowing for smaller lots upon subdivision will generate more lots per site. This can result in significant revenue generation for owners of larger sites such as 50 Brooke Court, and potentially encourage the division of such larger Hillsborough parcels; -317-
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o Allowing for higher residential density on these newly-created, smaller lots will encourage additional housing development;
o Higher density opportunities can create more opportunities for affordable projects to “pencil” for developers.
How does the Town Plan to Accomplish These Changes During the RHNA 6 Cycle? Statute requires that communities include in their Housing Element Updates a program which outlines the policy objectives of the community, the goals that the community has set to achieve those objectives, and a quantifiable action plan. The Update includes this section, which is referred to as the “Policies and Programs” section of the draft Update document. The following is a highlevel overview of the proposed RHNA 6 Policies and Programs (also referred to as Goals) included in the Draft Town of Hillsborough RHNA 6 Housing Element Update. The full narrative and quantifiable action plan may be found in the “Policies and Programs” section of the Town of Hillsborough RHNA 6 Housing Element Update attached to this staff report. -Policy 1: Reduce Barriers to Housing Development
• Goal 1.1: Allow for increased subdivision opportunities throughout the community. • Goal 1.2: Streamline the project review process for housing-related applications. • Goal 1.3: Assist Town residents in the resolution of land use conflicts to promote successful housing development projects.
• Goal 1.4: Amend the Town’s zoning regulations to comply with all recently adopted state legislation.
-Policy 2: Promote the Construction and Affordability of Accessory Dwelling Units (ADUs). • Goal 2.1: Continue to support and fund a Town ADU Ombudsman to guide property owners through the Town’s ADU process.
• Goal 2.2: Allow one JADU and multiple ADUs on lots one acre and larger within the RD-1 zone.
• Goal 2.3: Create a program to encourage and expedite the conversion of pool houses, guest houses, and other accessory structures to recorded ADUs/JADUs. • Goal 2.4: Require all future pool house, guest house, and similar development to be constructed to the standards of an ADU to accommodate future conversion. • Goal 2.5: Create a retroactive permitting program for existing, unpermitted ADUs. • Goal 2.6: Analyze the feasibility of requiring secondary ADUs (with the exception of JADUs) to be deed restricted at affordable rental rates.
-Policy 3: Facilitate Housing Development on Public, Commercial, Nonprofit, and Institutionally Owned Sites
• Goal 3.1: Redevelop the 2+ acre Town Hall Campus to incorporate mixed-income, multifamily residential development into the civic site. • Goal 3.2: Monitor the disposition of all publicly owned land for potential future use for housing development.
• Goal 3.3: Encourage and support use of commercial, non-profit, and institutionally owned land for housing development.
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-Policy 4: Plan for and Support the Development of “Missing Middle,” Multi-Family and Affordable Housing
• Goal 4.1: Update the Town's Zoning Ordinance to allow a variety of missing middle and multifamily housing types in the community.
• Goal 4.2: Modify fees and reduce costs for affordable housing projects. • Goal 4.3: Establish an Affordable Housing Impact Fee Program. • Goal 4.4: Ensure appropriate resource levels for timely review of housing development applications.
• Goal 4.5: Discourage redevelopment of sites with existing, smaller, single-family homes. -Policy 5: Ensure Responsible Development in Wildland Urban Interface (WUI) Areas • Goal 5.1: Continue to support the Central County Fire District (CCFD) WUI Home Inspection Program.
• Goal 5.2: Continue to support community participation in the National Firewise USA® Recognition Program of the National Fire Protection Association (NFPA). • Goal 5.3: Establish and enforce safety standards for structures and landscaping in WUI areas.
-Policy 6: Establish and Strengthen Opportunities for Rental Tenancies • Goal 6.1: Add a tenant/landlord information page to the Town website. • Goal 6.2: Support the Human Investment Project (HIP Housing) Home Sharing, SelfSufficiency, and Property programs. • Goal 6.3: Establish and continue partnerships with local nonprofits for tenant outreach and counseling.
• Goal 6.4: Adopt an anti-harassment ordinance and a right-to-counsel policy. -Policy 7: Actively Participate in Meeting the Housing Needs of the Community • Goal 7.1: Continue participation in and support for the 21 Elements project. • Goal 7.2: Provide financial support to local housing, homelessness, and mental health support programs.
• Goal 7.3: Report annually to City Council on the Town’s progress in meeting the RHNA Cycle 6 housing allocation.
• Goal 7.4: Monitor the residential sites inventory and the Town’s progress in meeting RHNA. -Policy 8: Affirmatively Further Fair Housing Opportunities • Goal 8.1: Eliminate discrimination in housing based on age, race, color, religion, sex, marital status, national origin, ancestry, or occupation.
• Goal 8.2: Proactively increase access to affordable housing options for historically marginalized and underrepresented groups.
• Goal 8.3: Encourage the inclusion of universal design standards in all multi-family development.
What is the Project Timeline & Next Steps?
The Housing Element must be updated and certified by HCD by January 31, 2023 for the RHNA 6 Cycle. The table below summarizes the key dates to ensure the Town receives HCD certification -319-
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