Hillsborough City Council
November 14, 2022

RLNA-58732\2697802.1
neighborhoods – namely, its design modulates its building mass, and it has only a partial (not full) second story that is set back from the first floor.

The third and fourth pages of Appellants’ Exhibit B, pages 29-30 of the Guidelines, address considerations for second story additions to ranch style homes; while those guidelines also do not “prohibit” such additions – and, indeed, they contain an illustration at page 30 depicting a favorably-viewed exemplar of such an addition – they are simply inapplicable to the Project, which will not add a second story to an existing ranch style home, but will demolish the existing home on the Property and construct a completely new Craftsman-style home with a partial and set-back second story, in an edge or transitional area that already contains numerous twostory homes.

The next page of Appellants’ Exhibit B, Development Standards, likewise contains no “prohibition” on two-story homes, and essentially explains that projects must undergo a subjective architectural and design review process.10 No reasonable person reading the portions of the Town’s Guidelines cited by Appellants could conclude that they “prohibit” two-story homes, even in the midst of one-story neighborhoods, much less on their edges and in transitional areas. The only conclusion that a reasonable person could glean from the foregoing is that Appellants are desperately attempting to conjure a two-story prohibition that simply does not exist anywhere in the Town’s Residential Design Guidelines, or in any of its other development standards, and to have this Council arbitrarily impose such an invented restriction on the Applicant’s Project. But the Council lacks legal authority to do so; Appellants’ arguments are devoid of legal merit or evidentiary support, as well as entirely arbitrary, capricious, and inequitable.

C. The Housing Crisis Act Prohibits The City Council From Denying The Project Based On Subjective Design Review
Guidelines
The Town’s attorney, Christopher Diaz, has advised the City Council numerous times on the record that State law known as the Housing Crisis Act applies to this Project and prohibits the Council from denying it based on anything other than an objective development standard. As demonstrated above, there is no applicable objective development standard that the Project fails to comply with; accordingly, the Council cannot deny the Project and must reject the appeal as a matter of State 10 The exhibit’s next two pages are simply duplicates of page 13 of the Town’s Guidelines depicting various architectural styles considered to be authentic and preferred; interestingly, far from containing any prohibition, all accompanying illustrations depict large homes that appear to have two (or more) stories. The final page of Exhibit B is a duplicate of a page from the Massing chapter already discussed above.
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Mayor Royse
City Council
November 4, 2022

RLNA-58732\2697802.1
law, if Mr. Diaz’s analysis and advice given on the record was correct. As demonstrated below, Mr. Diaz gave the Council correct legal advice at its October 10 meeting, and the Housing Crisis Act does, indeed, compel denial of this appeal.

Two relevant statutes are part of the Housing Crisis Act: Government Code sections 65905.5 and 66300. Both apply to a “housing development project” and both define that term to “include[] a proposal to construct a single dwelling unit.” (Gov. Code, § 65905.5(b)(3)(C); see § 66300(a)(6) [incorporating same definition].) Section 65905.5(a) provides that where a proposed housing development project complies with the applicable, objective general plan and zoning standards in effect when its application is deemed complete, a city (1) cannot hold more than five (5) hearings on it (counting continued hearings as a separate hearing), and (2) “shall consider and either approve or disapprove the application at any of the five hearings allowed… consistent with the applicable timelines under the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920)).”11 As already demonstrated, the Project complies with all applicable objective general plan and zoning standards of the Town, meaning that Section 65905.5’s numeric hearing limitation and its other restrictions on a city’s approval or disapproval action apply to the Project.

The statute further provides that “a housing development project shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project is consistent, compliant, or in conformity.” (Gov. Code, § 65905.5(c)(1), emph. added.) While, as Mr. Diaz pointed out, the Housing Accountability Act (HAA) does not currently apply to this single-residence Project (but see fn. 1, ante), the HAA contains a provision (Gov.

Code, § 65589.5(f)(4)) that is substantially the same in content as Section 65905.5(c)(1), and which has been interpreted to restrict a local agency’s approval/disapproval discretion such that it cannot rely on non-objective standards to deny a project. (California Renters Legal Advocacy and Education Fund v. City of San Mateo (2022) 68 Cal.App.5th 820, 845 [holding that where reasonable persons could differ as to whether or not a project complies with a design guideline, this demonstrates both that the guideline is not objective and that a reasonable person could conclude the project satisfies it].) Here, consistent with Mr. Diaz’s admonitions to the Council at its first hearing, the Housing Crisis Act, and specifically Government Code Section 65905.5(c)(1) requires the Council to approve this Project and deny the appeal because (1) substantial evidence in the record – including the ADRB’s 2-1 approval decision and the Town Staff report – would clearly allow a reasonable person to conclude the Project complies with all 11 The City Council’s obligations to deny the appeal and approve the Project under the Permit Streamlining Act will be discussed under a separate heading below. -220-
Mayor Royse
City Council
November 4, 2022

RLNA-58732\2697802.1
applicable subjective Design Review Guidelines,12 and (2) no noncompliance of the Project with any objective Design Review or other development standard has been demonstrated.

The other relevant Housing Crisis Act provision, Government Code Section 66300, applies to the Town of Hillsborough because, as its City Attorney has undoubtedly advised it, it is an “affected city” as determined by the State Department of Housing and Community Development (HCD) pursuant to the statute’s criteria. (See Gov.

Code, § 66300(a)(1).) This statute confirms the Town’s Design Review Guidelines are purely subjective standards, as it defines “objective design standard” to mean “a design standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.” (Gov. Code, § 66300(a)(7).) It further provides, in pertinent part, that “an affected city shall not enact a development policy, standard, or condition that would,” inter alia, reduce the intensity of a property’s allowed land use “below what was allowed under the [city’s applicable] land use designation or zoning ordinances… in effect on January 1, 2018,” except as specified, and defines “reducing the intensity of land use” to include, without limitation, “reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, …, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the site’s residential development capacity.” (Gov. Code, § 66300(b)(1)(A).)
In addition to these restrictions, and to Section 65905.5(c)(1)’s requirement that all cities deem housing development projects consistent with standards whenever substantial evidence would allow a reasonable person to so conclude, the Housing Crisis Act prohibits affected cities from “imposing or enforcing design standards established on or after January 1, 2020, that are not objective design standards.” (Gov. Code, § 66300(b)(1)(C).)13
Accordingly, as demonstrated above and consistent with Mr. Diaz’s prior legal advice to the Council, the Housing Crisis Act applies to the Project and prohibits the Council from denying it based on the Town’s Design Review Guidelines or any other 12 “Substantial evidence” is “evidence that is ‘of ponderable legal significance,’ ‘reasonable in nature, credible, and of solid value,’ and ‘ “substantial” proof of the essentials which the law requires in a particular case.’” (Conservatorship of O.B. (2020) 9 Cal.5th 989,1006.)
13 The City thus cannot enact, establish or enforce any new subjective design review standards in the future, and its discretion in enforcing its existing standards is also constrained by Government Code Section 65905.5(c)(1), as described above. -221-
Mayor Royse
City Council
November 4, 2022

RLNA-58732\2697802.1
non-objective development standards; since the Project complies with all objective standards, the City Council must approve it and deny the appeal.

D. The Appeal Must Be Denied Because The Project Has Already Been Deemed Approved As A Matter of Law Due To The City Council’s Failure To Take Final Action To Approve Or
Disapprove It Within The Time Limitations Of The Permit Streamlining Act
As stated above, the Housing Crisis Act not only requires cities to take action on housing development projects within a maximum of five hearings, but further requires that such action occur “consistent with the applicable timelines under the Permit Streamlining Act[.]” As relevant here, the Project’s application was deemed complete by the Town on July 15, 2022. The ADRB thereafter determined the Project to be exempt from CEQA and approved it on August 1, 2022. Appellants have not appealed the CEQA exemption determination.

The Permit Streamlining Act (“PSA”; Gov. Code, § 65920 et seq.) applies to all public agencies, including charter cities, based on the Legislature’s finding and declaration “that there is a statewide need to ensure clear understanding of the specific requirements which must be met in connection with the approval of development projects and to expedite decisions on such projects.” (Gov. Code, § 65921.) In relevant part, the PSA requires the lead agency for a development project that is exempt from CEQA to approve or disapprove the project within 60 days of its determination that the project is exempt. (Gov. Code, § 65950(a)(5).) This is a maximum time limit, and public agencies must, if possible, act on the project in a shorter time period. (Gov. Code, § 65953.) Any disapproval must state reasons based on the substantive merits of the Project and cannot be based on the need to take action to comply with the PSA’s time limits. (Gov. Code, § 65952.2.) If the lead agency fails to approve or disapprove the project within the PSA’s applicable time limit, and the public notice required by law has been given, “the failure to act shall be deemed approval of the permit application for the development project.” (Gov. Code, § 65956(b); see also, e.g., Linovitz Capo Shores LLC v.

California Coastal Comm. (2021) 65 Cal.App.5th 1066 [Commission’s failure to take timely action at noticed public hearing resulted in “deemed approval” of coastal development permit application under PSA].)
Here, in addition to all of the other reasons that the City Council is required by law to deny the appeal and approve the Project, it has already been deemed approved as a matter of law under the PSA because all required public notice has been given -222-
Mayor Royse
City Council
November 4, 2022

RLNA-58732\2697802.1
and more than 60 days have elapsed since the CEQA exemption determination without the Council making a decision to approve or disapprove the Project.14 III. CONCLUSION
The ADRB’s approval decision was correct, required by law, and supported by substantial evidence. Appellants’ arguments challenging it are uniformly lacking in legal merit and are not supported by substantial evidence. Further, the applicable provisions of the Housing Crisis Act and the Permit Streamlining Act require the City Council to deny the appeal and approve the Project as a matter of law. Finally, the Applicant has gone “above and beyond the call” in redesigning its Project and offering design concessions to address the Appellants’ stated (but meritless) concerns, and in following the Council’s direction at the last hearing. Accordingly, the City Council must make the only decision that is consistent with the law and simple justice and fairness: it must deny Appellants’ appeal and approve the Applicant’s Project.

Very truly yours,

MILLER STARR REGALIA
Arthur F. Coon
Attorneys for the Applicant,
1950 Ralston Ave., LLC
AFC:klw
encls. (Exhibits A-H)
cc: City Clerk, Lisa Natusch (via email: [email protected]; w/Exhibits) City Attorney Christopher Diaz (via email: [email protected]; w/Exhibits)
14 The fourth hearing on the Project is scheduled to occur on November 14, 2022, 105 days after the Town’s never-appealed CEQA exemption determination was made. The Project thus being deemed approved as a matter of law, the Council lacks legal authority to do anything other than deny the appeal. -223-

EXHIBIT A
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AGENDA ITEM 12
Appeal of the ADRB Approval of 1950 Ralston Ave.

Town of Hillsborough
City Council
October 10, 2022
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Overview
The property is an
internal lot located
on Ralston Ave.
between
Hillsborough
Boulevard and
Pepper Avenue, in
the Country Club
Manor
neighborhood of
Hillsborough.
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On August 1, 2022, commensurate with their role to promote the “orderly and harmonious development of the town and maintain and enhance the desirability and historic quality of life in the town”, the Architecture Design Review Board issued the conditional approval of a new two-story Craftsman style residence. -227-
Existing
(Photo credit: Redfin.com)
Proposed
(Photo credit: Form One Design)
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1. Consistency with the General Plan
 New single-family (R1) residential home

FINDINGS
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2. Conforms to Zoning Code Development Standards
Objective Standard Allowed Maximum/Minimum Existing Proposed Conforms (Y/N) *Height Max. 22’-32’ 28’-6.5” Yes
Floor Area Ratio Max. 25% 3,161 SF (14.05%) 5,478 SF (24.36%) Yes Lot Coverage Maximum 50% 49.88 SF Yes
Structure Size 2,500 SF Minimum 3,161 SF 5,624 SF Yes
Streetside Open Space 60% Minimum 83.28% Yes
Streetside Setback 50’ ROW = 25’ Minimum
setback 30’-2” 38’-4.25” Yes
Side Yard Setbacks 20’ Minimum (L)30’-0” (R)45’-0” (L)36’-8.5” (R)51’-1.5” Yes Rear Setback 20’ Minimum 33’-11” 30’-8” Yes
Parking Two enclosed + one 4-5 bedrooms 3 Enclosed Yes
* Height: The Building Envelope begins at the setback line, rises to 22’ then angles inward at 45 degrees to meet a 32’ maximum measured from a warped plane parallel to the existing grade. The proposed plan does not exceed or protrude the building envelope and therefore meets the objective height standard.

FINDINGS
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OBJECTIVE STANDARDS
Property Line
20’ Side and Rear Setbacks
30’ Streetside setback
Streetside open space
Parking
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OBJECTIVE STANDARDS
Height – Maximum allowed = 32’
Proposed – 28’- 6 1/2”
* Height: The Building Envelope
begins at the setback line, rises to
22’ then angles inward at 45 degrees
to meet a 32’ maximum measured
from a warped plane parallel to the
existing grade. The proposed plan
does not exceed or protrude the
building envelope and therefore
meets the objective height standard. -232-

OBJECTIVE STANDARDS
Height – Maximum allowed = 32’
Proposed – 28’- 6 1/2” -233-

OBJECTIVE STANDARDS

FLOOR AREA RATIO
Maximum allowed = 5,621.5 Square Feet
(25% of Net Lot Area)
Proposed – 5,478 Square Feet (24.36%)

LOT COVERAGE
Maximum allowed = 11,243 Square Feet
(50% of 22,486 SF or Gross Lot Area )
Proposed – 3,572 + 7,645 = 11,217 (structure +
landscape) Square Feet (49.88%)
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3. Meets the Town of Hillsborough Residential Design Guidelines  Reinforces Hillsborough’s Image
 Conforms to the Buildings in the Surrounding Vicinity  Encourages Town-wide diversity
 Foster’s Creativity

FINDINGS
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FINDINGS
“Homes contribute to a somewhat rural but stately sense of community.” -Residential Design Guidelines Chapter 1, Goal 1, pg. 4. -236-
“Neighborhood Edges: The edges of neighborhoods or transitional areas between neighborhoods are more conducive to new construction that proposes a change in the generally established massing of buildings in the neighborhood.”
-Residential Design Guidelines Chapter 5 Massing, pg. 28.

Existing Two-Story Residence
Existing One-Story Residence in
Summerholme Sub-division – Deed
Restricted
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Encourage Town-Wide Diversity:

An enviable attribute of Hillsborough is the feeling that no two homes seem to have ever been erected by the same developer. This characteristic of one-by-one homebuilding and craftsmanship should be embraced and emulated. A multitude of styles have been executed successfully in the building of the town’s fabric. A key component in the success of this development pattern of adjacent homes of differing styles is the rigor and discipline the architect applies to the selected style. -Residential Design Guidelines Chapter 1, Goal 3, pg. 5. -238-
Foster Creativity:

The guidelines in this document are intended to offer inspiration and potential solutions for important components of residential architecture; they are not intended to be a checklist. Creative design solutions that build on the opportunities inherent in the site and the neighboring properties, and that faithfully adhere to fundamental design principles in the execution of an overall vision and style, will most likely produce results that are characteristic of Hillsborough. -Residential Design Guidelines Chapter 1, Goal 4, pg. 5. -239-
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Staff Recommendation
Based on the project's consistency and conformance with:
• The Town of Hillsborough General Plan
• The Town of Hillsborough Zoning Ordinance
• The Town of Hillsborough Residential Design Guidelines Staff recommends the City Council:
• Approve the draft resolution based on ADRB approval of the Design Review Permit.
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EXHIBIT B
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TOWN OF HILLSBOROUGH
Architecture and Design Review Board
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
#5

FORMAL REVIEW
AUGUST 1, 2022

STAFF MEMORANDUM
PROJECT: 1950 Ralston Way (APN: 028-234-130)
1950 Ralston Ave., LLC (Form One Design and Michael Callan Landscape Architect) Received Preliminary ADRB review on January 24, 2022
DESCRIPTION:

Request for design review of a new, 5,339 square foot (23.74% Floor Area Ratio) two-story Craftsman style residence. The proposed structure will replace an existing Ranch style home approximately 3,161 square feet on a 22,486 square foot lot (14.05% Floor Area Ratio). As required for new dwellings, associated landscape improvements are included in this application. Hillsborough’s Municipal Code defines new dwellings as “type A” or a major project, and this project is therefore subject to ADRB review and approval.

BACKGROUND:

This property is in the Country Club Manor neighborhood of Hillsborough on Ralston Ave. between Hillsborough Boulevard and Pepper Ave. Country Club Manor is centrally located in the Town of Hillsborough and is accessible from El Camino Real to the east and interstate 280 to the west. The structure is in the relative center of a flat parcel and there are no views of significant landforms from this site. The parcel is within 0.10 mile of the Burlingame Country Club.

DISCUSSION:

The proposal received preliminary review at the January 24, 2022, ADRB meeting. Below is a list of their comments/recommendations:

Board Comments Applicant Responses
Board member appreciates the design of the
house, and recognized the setbacks look good.

Concerned about the character of the
neighborhood. Understands the concerns of
the residents, appreciates the outreach done
so far. Recent building in the area is ongoing
so there is a lot of change happening. In
general, doesn’t object to the design however
doesn’t find it to be consistent with the design
guidelines specifically Ch. 5-6 and is
concerned.
a. Removed adu from second floor @ garage
b. Removed windows or reduced size of
windows at second floor
c. Committed to installing landscaping at
START of project.
d. We have overly large setbacks as this will
help with sound and privacy, we want privacy as
much as everyone else, the overly large setbacks do
this, and also the pre-planting of the landscape
does as well.
e. as for Chapter 5-6 massing + materials, I believe
we have completely worked with the Ralston
corridor, with many new larger than what we are
-248-proposing projects happening, we considered this
in design and trying to
equal out the Ralston Ave.streetscape.

Board member does feel that the proposed
design is consistent with the neighborhood.

Doesn’tthink the massing should be a big issue
but would like to see the applicant work with
the neighbors.
a. Removed adu from second floor @ garage
b. Removed windows or reduced size of
windows at second floor
c. Committed to installing landscaping at
START of project.
d. We have overly large setbacks as this will
help with sound and privacy, we want privacy as
much as everyone else, the overly large setbacks do
this, and also the pre-planting of the landscape
does as well.
e. We did do major review with another
zoom
meeting this spring as well.

Board member respectfully disagrees with
previous comment, does believe this is
inconsistent with the single-story articulation.

Second floor is too much, setbacks and
impacts are of significance.
a. Technically we are not on Country Club
Circle, we are on the Ralston roadway side, which
have many 2 story homes on the south side… I
would think the Ralston corridor would be the one
articulation we should be worried about; this
corridor should be more like West Santa Inez…
driving both of these major corridorsinto the heart
of Hillsborough you understand which road is
(articulated correctly and which one needs help
with having that feeling) Santa Inezisthe roadway
that you feel is really done well and that most
homes and setback fit.
b. We have made many concessions noted
above a-d… which I think helps the item with the
neighbors at the rear of this property (on country
club) have issues with.
c. Also please read the response to the 2
latest letters from country club neighbors, they are
also not attached to the project site, as in, being
next door to project site. Also, I have a few
compelling notes about
how protective covenants could help them in the
future
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from having this hassle. This is how most of the US and most communities protect themselves from something
they (they as a whole) community wantstheir neighbors
and neighborhood to act and look.
d. Technically we are not on Country Club Circle, we are on the Ralston roadway side, which have many 2 story
homes on the south side… I would think the Ralston
corridor would be the one articulation we should be
worried about; this corridor should be more like West
Santa Inez… driving both of these major corridors into
the heart of Hillsborough you understand which road is
(articulated correctly and which one needs help with
having that feeling) Santa Inez is the roadway that you feel isreally done well and that most homes and setback fit and are correctly sized and scaled.

Board member understands perspective of
each side. Has an issue with some of the trees,
protect tree #2, tree #10 can be protected,
tree #20 should be saved. Disturbing amount
of tree removals proposed. The side facing
garage is good, likes the parking strip. The
second floor may be an issue because it is
close and overlooks the neighbors. Consider
relocating this part of the addition.
a. Removed adu from second floor @ garage
b. Removed windows or reduced size of windows
at second floor
c. Committed to installing landscaping at START
of project.
d. We have overly large setbacks as this will help
with sound and privacy, we want privacy as much as
everyone else, the overly large setbacks do this, and the pre-planting of the landscape does as well.
e. if we need to keep 1-2 of the trees to get this
approved, we will make that concession.

Board member encouraged applicant to think
creatively about how this project can be developed
without being such an afront to the existing
neighborhood character. Supportive of the design
but not necessarily for this neighborhood. There is
a lot of flexibility with respect to design given that
there is not a current owner. Don’t get wedded to
this design as it will need to remain flexible.
a. Removed adu from second floor @ garage
b. Removed windows or reduced size of windows
at second floor
c. Committed to installing landscaping at START
of project.
d. We have overly large setbacks as this will help
with sound and privacy, we want privacy as much as
everyone else, the overly large setbacks do this, and also the pre-planting of the landscape does as well.
e. We did do major review with another zoom
meeting this spring as well.
f. Technically we are not on Country Club Circle, we are on the Ralston roadway side, which have many 2 story
homes on the south side… I would think the Ralston
corridor would be the one articulation we should be
worried about; this corridor should be more like West
Santa Inez… driving both of these major corridors into
the heart of Hillsborough you understand which road is
(articulated correctly and which one needs help with
having that feeling) Santa Inez is the roadway that you feel isreally done well and that most homes and setback fit and are correctly sized and scaled.
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Agenda Staff Report—Architecture & Design Review Board
August 1, 2022

Proposed Colors and Materials
• Windsor-one lap board, trim, accents, and siding
• Chadsworth square column
• Restoration Hardware ‘Lombard Lamp’ exterior lighting • Copper gutters, half round
• Estate Grey asphalt shingles
• Standing seam metal roofing
• Brick veneer with stone cap
• Windows TBD and will include satin window (privacy treatment) • Sherwin Williams paint colors: Pure White, Passive, and Tricorn Black • Garage and doors, TBD
Landscaping
Under section 2.12.070 Design Review Process of the Hillsborough Municipal Code, the project is defined as a new dwelling and therefore required to include landscaping. A proposed landscape plan has been submitted and upon staff review, meets the requirements for a complete preliminary application. The proposed design is under current review by the Town Consulting Landscape Architect. Features included in the landscape plan include a new swimming pool, lawn area stone patio, concrete play area, new concrete unit paver driveway, synthetic turf play area, new 6’ ht. front stucco wall with columns and steel pedestrian gate, various ground covers, shrub and tree plantings, wood fencing and evergreen privacy hedge and screen plantings. Arborist report is required and pending review.

Central County Fire Department (CCFD)
A Fire Access plan is required for this application. The current proposal has been submitted to CCFD for review and is pending final approval.

Public Works (PW)
There is a Public Utilities Easement on site the location of which will be confirmed by Hillsborough Public Works. Their review is pending. Any proposed work within the public right of way will require review and approval of the Public Works department prior to issuing building permits.

Public Comments Received
Staff is in receipt of neighbor feedback from various adjacent neighbors and residents. All comments provided as of July 26, 2022, at 5:00 PM are included as attachments. Additional outreach was prepared and conducted by the applicant per feedback by the Board at the Preliminary design review meeting. Staff has provided a public meeting notice to neighbors within a 500-foot radius of the proposed site in accordance with state requirements.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Categorically exempt. The proposal is exempt from CEQA pursuant to Section 15303, Class 3, which includes an exemption for the construction of a single-family residence in a residential zone.

Should the Board be inclined to approve the proposal, based on consistency with the Residential Design Guidelines as discussed, the following conditions have been provided for consideration.

1) The proposal shall be subject to the Town’s adopted Standard Conditions of Approval; 2) The landscape plan shall be revised to respond to the recommendations outlined in the TCLA report, subject to all administrative design review procedures, inclusive of an additional TCLA review and associated fees; -251-
Agenda Staff Report—Architecture & Design Review Board
August 1, 2022

3) The applicant shall be responsible for providing fire sprinkler system throughout, installed under a separate fire sprinkler permit issued by the Central County Fire Department. Applicant must note this on the drawings prior to the issuance of any Building permit.
4) The applicant shall be responsible for providing approved fire access plan showing the Knox key switch connection to the locked driveway and pedestrian gates operation. This detail must be provided by the applicant prior to the issuance of any Building permit. 5) The exterior materials, colors, roof, windows and doors, and architectural detailing of the project shall match what is noted on the plans and approved colors and materials board. Any changes shall first be reviewed by the Planning Department. Revisions that are substantial in nature are subject to review and approval by the ADRB, in a public hearing; minor revisions will be subject to review and approval via Administrative Review by staff;
6) The landscape project is classified as a Tier II landscape project and is subject to the requirements of the Town’s amended water efficiency in landscape ordinance (WELO) HMC 15.29. All requirements of the WELO shall be submitted as a part of the Building Permit submittal to the Town; 7) Any new exterior lighting shall not be directed toward the street, the sky or neighboring properties and shall be a maximum of 60 watts;
8) Submit construction drawings, permit application, and fees to the Building Department for necessary review and permits, before initiating this project. You may contact them at 650.375.7411, if you have any questions; 9) Prior to Building Permit issuance, the applicant shall submit a construction management plan to address construction staging, construction equipment, employee parking and truck routing to the satisfaction of the Building Official. The plan shall also address issues regarding noise, dust, vehicular and pedestrian safety, storage of construction materials, clean-up areas, placement & screening of sanitary and construction facilities, and if required shall maximize on-site construction vehicle parking, as per HMC Chapter 15.26.

ATTACHMENTS:

1. ADRB Formal Review Plan Set

2. Color and Materials Board

3. Arborist Report

4. Public Comment Letters
PREPARED BY: Linda Roberson, Associate Planner
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EXHIBIT C
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Form + One ▪ Design & Planning ▪ 4843 Silver Springs Drive▪ Park City ▪ UT ▪ 84098 ▪ (415) 819.0304 ▪ [email protected] Form + One
4843 Silver Springs Drive
Park City, UT 84098
P+ 415.819.0304
E + [email protected]

TRANSMITTAL FORM
To: Town of Hillsborough From: Tim Raduenz
Subject: Overall Review Date Sent: 07/22/2022
1950 Ralston Review Number of Pages:

OVERALL RESPONSE TO NEIGHBORS COMMENTS
To: Planning + Commission:

Was asked to do a review letter of where we are at with neighborhood responses to the 3 or maybe 4 letters we have received at the town, and to the additional number of neighbors coming in to the town and reviewing plans.

We have received 3 letters from neighbors (Linda/Planner) to confirm What we have done to accommodate the neighbor’s concerns + also our privacy (future owners)

1. We have created minimal windows on second floor looking towards the rear yard, and also the 2 side yards, the side yards only have awning windows that are high for privacy! So privacy was controlled that way, for these 2 side neighbors.

2. We also created VERY large side setbacks on each side yard, this creates privacy of site and also sound, which is a concern of ours as well, as 1 story homes lay more sq. ft. on the ground floor pushing homes closer together.

3. We committed to installing landscaping at the perimeter of the property line starting before large construction activities start

4. We have only one master bedroom window in the rear elevation that will be the only window with concern, and the neighbor to the rear of our property has not commented fully about this. The other window at the rear is in the 2-story volume of the family room, so you have complete privacy at that window.

5. We have reduced the height of the building (main home) After the review from neighbors at 2 Zoom meeting we held.

6. We have removed the 2nd floor ADU above the garage, after the review from neighbors at 2 Zoom meetings.

7. We removed standard casement windows on side yard bedrooms (converted) to awning (to promote) complete privacy for side neighbors.

8. We are open to the notion of keeping 2-3 of the larger trees (see arborist) report, per some of the commissions concerns, also will help the overall massing. We will keep a few of the health trees as noted if we can come to an approval for the project.
-254-

Form + One ▪ Design & Planning ▪ 4843 Silver Springs Drive▪ Park City ▪ UT ▪ 84098 ▪ (415) 819.0304 ▪ [email protected] The Designers + Owners Comments for this project:
(Added to conversations we had at our neighborhood outreach and also our overall comments on this project and future building on the Ralston corridor)
a. Technically we are not on Country Club Circle, we are on the Ralston roadway side, which have many 2 story homes on the south side and more down the road on the same side of street. I would think the Ralston corridor would be the one articulation we should be worried about; this corridor should be more like West Santa Inez, driving both of these major corridors into the heart of Hillsborough you understand which road is (articulated correctly and which one needs help with having “that feeling”) Santa Inez is the roadway that you feel is really done well and that most homes and setback fit.
b. We have made many concessions noted above with neighborhood outreach, which I think helps the neighbors at the rear of this property (on country club). At the expense of our client. c. Also please read the response to the 2 latest letters from country club neighbors, they are also not attached to the project site, as in being next door to project site. Also, I have a few compelling notes about how protective covenants could help them in the future from having this hassle. This is how most of the US and most communities protects themselves from something they (they as a whole) community wants their neighbors and neighborhood to act and look like. d. Finally, to end on a good note and also to talk about code and the Town of Hillsborough, we have designed a conforming home to the planning regulations, including larger setbacks then required, being well below maximum height limits, with also working with the planning department through out this long process, with also taking most of the comments from neigbhors into consideration, as you can see from the first paragraph of our concessions, WE really did listen to them. To the point where they just don’t want a 2nd floor built, I do understand they have the right to have an opinion, but to that point, we also have the right to build a 2-story home and are not asking for any variances and or close to any maximum requirements as far as height and setbacks!
To that end, I know this is a difficult decision, but as a commission, you need to ask your self is this a project that is appropriate and approvable by code/planning + building.

Are there:
any protective covenants that loom over the project (NO) are the qualities of design and construction materials present, Yes. is there a good mix of styles along the Ralston area, Yes.

Are there ago amount of 2-story homes along Ralston, Yes.

Have the owners reached out the neighbors for their comments, Yes.

If the answer is yes to all of them except (are there protective covenants) the response should be approved. -255-

Form + One ▪ Design & Planning ▪ 4843 Silver Springs Drive▪ Park City ▪ UT ▪ 84098 ▪ (415) 819.0304 ▪ [email protected] Best,
Tim Raduenz
-256-

EXHIBIT D
-257-

TOWN OF HILLSBOROUGH
California

Story Pole Plan Approval and Key Dates
PROJECT ADDRESS:
(APN: 028-234-130) 1950 Ralston Ave.

The attached story pole plan has been approved for your project scheduled for the ADRB meeting on:

Monday AUGUST 1, 2022 @ 4:00 PM
Please keep in mind the following deadlines:

July 22, 2022 - The story poles must be installed, as per this plan, by 5:00pm.

July 29, 2022 - An emailed copy of the certification from a licensed surveyor or civil engineer that the story poles have been installed as per the approved plan must be submitted to the Planning Office. Certification must include the surveyor’s or engineer’s professional stamp and signature; a copy of the approved story pole plan must be attached. Certification by architects is not acceptable.

Story poles shall be installed as follows:
• All story poles shall be painted with 12” high stripes, alternately black and white, to assist with the visual verification of indicated heights above grade.
• Netting at least 12” wide of woven plastic fencing, or another equally suited material (in “international orange”, yellow, red, or other contrasting color), shall be assembled to represent the proposed structure.
• All story poles; netting, stakes, and/or support wires shall be installed so as to withstand weather (and remain standing and correctly reflective of the plans) until the approved removal date.

Failure to install and verify the story poles as required will mean that the application cannot be considered at the above scheduled ADRB meeting.

If the project is approved, story poles may be removed from the site no earlier than August 16, 2022, and must be removed from the site by August 31, 2022, unless the Planning Office has notified you that there will be an additional hearing on the application or has otherwise requested the story poles remain in place.

If you have any questions, please call (650) 375-7422
Attachment: Approved Story Pole Plan
-258-
8"OAK LOT AREA 22,486 SQ. FT. SS D.S.

LSM 45 17'-10" 17'-10" 17'-10" 17'-10" 30'-2" 30'-2" 30'-2" 30'-2" 30'-2" 30'-2" 30'-2" 11'-4" 17'-10" 17'-10" 17'-10" 17'-10" 27'-9" 27'-9" 11'-4" 13'-11" 13'-11" 30'-2" 27'-9" 27'-9" 22'-3" 22'-3" 27'-9" 27'-9" 27'-9" 27'-9" 27'-9" 27'-9" 22'-3" 22'-3" 22'-3" 22'-3" 22'-3" 22'-3" 11'-4" 11'-4"11'-2" 11'-2" 11'-2" 29'-11" 11'-2" 29'-11" 29'-11" 29'-11" 24'-7" 24'-7" 24'-7" 24'-7" Sheet Scale:

All drawings & Specifications provided as instruments of service are the property of the Designer whether the project is executed or not.It is unlawful for any person, without the written consent of the Designer. To duplicate or make copies of these documents,partly or in whole, for use for other projects & buildings.

Rev.:
001
002
003
004
005
006
Description : Date :

Revisions 4843 SILVER SPRINGS DRIVE E-mail: [email protected] Ph: 415.819.0304 Park City, UT 84098 Greg Gambrioli
1950 Ralston Ave.

Hillsborough, CA 94010
Title :

Project :

Date : 07-15-21 Drawn : TIM RADUENZ 21_24 Job No. :

Owner :

APN#: 028-234-130
Contractor :

PLANNING SET
Zoning: RESIDENTIAL

BUILDING SET
Greg Gambrioli
1950 Ralston Ave.

Hillsborough, CA 94010 one DESIGN PLANNING form
LOT SIZE: 22,486 SQ. FT.

Story Pole Plan See Details SP Scale: 3/16" = 1'-0" SP STORY POLE PLAN 1 Scale: N/A SP STORY POLE PLAN INSTRUCTIONS 2 -259-

EXHIBIT E
-260-

TOWN OF HILLSBOROUGH
California August 2, 2022
Tim Raduenz
Form One Design
4843 Silver Springs Drive
Park City, UT 84098
RE: 1950 Ralston Way (APN: 028-234-130) Request for design review of a new, 5,339 square foot (23.74% Floor Area Ratio) two-story Craftsman style residence. The proposed structure will replace an existing Ranch style home approximately 3,161 square feet on a 22,486 square foot lot (14.05% Floor Area Ratio). As required for new dwellings, associated landscape improvements are included in this application. Hillsborough’s Municipal Code defines new dwellings as “type A” or a major project, and this project is therefore subject to ADRB review and approval.

Dear Mr. Raduenz,
I am pleased to inform you that at its meeting on August 1, 2022, the Town of Hillsborough Architecture and Design Review Board (ADRB) voted (2:1) to conditionally approve your new Craftsman style residence with a total proposed floor area of approximately 5,339 square feet (23.74% Floor Area Ratio) on a 22,486 square foot lot. The approval includes demolition of the existing residence and a full landscape plan per approved plans.

The approval is subject to the following conditions:

1. Standard Conditions. The proposal shall be subject to the Town’s adopted Standard Conditions of Approval;

2. Revise to include Flat roof. The area over the garage shall be designed to provide a flat roof and replace the proposed pitched roof.

3. Fire Access. The property is not within the in the High Fire Severity Zone (HFSZ) or Wildland-Urban Interface (WUI) areas, however, all new houses must receive review and approval from Central County Fire Department (CCFD) that the project satisfies fire access standards for a new house;

4. Revisions. The exterior materials, colors, roof, windows and doors, and architectural detailing of the project shall match the colors and materials noted on the plans and submitted materials board. Any changes shall first be reviewed by the Planning Division. Minor revisions will be subject to review and approval via Administrative Review by staff; Revisions that are substantial in nature are subject to review and approval by the ADRB in a public hearing;

5. Permits Required. Before initiating any construction, permittee shall submit construction drawings, permit application and fees to the Building Division for necessary review and approval. You may contact them at [email protected] if you have any questions;

6. Construction Management Plan. Prior to Building Permit issuance, the applicant shall submit a construction management plan to address construction staging, construction equipment, employee parking and truck routing to the satisfaction of the Building Official. The plan shall also address issues regarding noise, dust, vehicular and pedestrian safety, storage of construction materials, clean-up areas, placement & screening of sanitary and construction facilities, and if required shall maximize onsite construction vehicle parking, as per HMC Chapter -261- 15.26.

There is a 15-day appeal period which follows the ADRB’s approval and is scheduled to end on August 16, 2022.

You may choose, at your own risk, to submit documents to the Building Division to begin the plan check process during this time. No work shall be initiated without first securing the required building permits.

Please contact the Building Division at (650) 375.7411 or at [email protected] with any questions regarding requirements for a building permit application, permit fees, building permit process, and/or plan check.

Expiration of Approval: Construction plans must be submitted to the Building Division and permits issued within two years from the date of design review approval by the ADRB. A request for a one-year extension of time, if it is filed prior to the expiration date, may be considered.

If you have any questions, please feel free to call me directly at [email protected] Best regards,
Linda Roberson, Associate Planner
Town of Hillsborough, Building & Planning Department
Attachments:

1. Standard Conditions
-262-

TOWN OF HILLSBOROUGH
Revised April 3, 2013

STANDARD CONDITIONS OF APPROVAL
for projects approved by the City Council, the Architecture and Design Review Board, and the Planning Department staff
This application has been approved, subject to compliance with these conditions, and satisfactorily meeting the requirements, codes and ordinances of the Town of Hillsborough. A final sign-off on the project (or a Certificate of Occupancy) will not be granted until the project has been inspected for compliance with these conditions and requirements. Where applicable, compliance with these conditions shall be reflected on the plans submitted for permit(s).

Property Owner Acknowledgement
I am the owner of this property and, by signing this document, I acknowledge that I understand and agree to the terms of the Standard Conditions dated March 1, 2004 and revised on May 08, 2006.
_________________________________________ __________________________ Owner’s Signature Date
Print Owner’s Name: _______________________________________________________ Property Address: _________________________________________________________ Note: This form must be signed and submitted as part of the Building Permit application.

Attachments: Tree Protection for Construction Sites
Requirements for Parking Strips
Planning Office
650/375-7422
Fax: 650/375-7415
1600 Floribunda Avenue
Hillsborough
California 94010
-263-
Standard Conditions
May 8, 2006 (reformatted 04-03-13)
2 Permits Required

1. Before beginning work on the project, all necessary permits (such as Demolition, Building, Electrical, Mechanical and Plumbing) must be secured from the Building Department.

Separate Permits are required for landscape installation, pools, retaining walls, and certain large tree removals. Construction plan set must show the total area of conditioned space.

2. An Encroachment Permit must be obtained for all work within the Town's right-of-way, including but not limited to landscaping, parking strips, driveways, curbs and gutters, and for work on Town utilities including water, sewer and storm drain piping (Hillsborough Municipal Code (HMC) Section (§) 12.24.010 and §13.32.030).

3. A Grading/Hauling Permit must be obtained for a project with a combined amount of cut and fill exceeding 50 cubic yards of material (HMC §15.24.030). Additionally, City Council approval is required whenever soil-haul to or from the site exceeds 1500 cubic yards (HMC §5.24.070). Projects and/or permits requiring City Council approval due to soil-haul exceeding 1500 cubic yards shall also be subject to environmental review (HMC §15.24.040). The environmental review process generally requires approximately three to nine months to complete and must occur prior to City Council approval. See the City Engineer's Grading/Hauling Application form for additional information. Grading is not permitted between October 15th and April 15th without approval from the City Engineer.

Plan Requirements

4. Site development, including landscaping, shall conform to the approved plans. No significant changes shall be made to the approved plans without Planning Department approval and revisions to the permit(s).

5. Where applicable, plans submitted for a Building Permit shall fully document (on the actual plans) the lot size, structural coverage and floor area (FAR) calculations. The permit plans shall fully document the construction details sufficient to demonstrate that all areas of the house which are not counted as floor area in the FAR calculations on file with the Planning Department will not be constructed as floor area. For example, attic spaces with sloped ceilings which are not included in the FAR calculations shall be detailed and constructed such that the floor-to-ceiling height is less than five feet and basement areas which are not included in the FAR calculations shall be detailed and constructed such that the floor-to-ceiling height is less than six feet (see HMC §17.32.020). Floor area which is not identified in the FAR calculations shall not be permitted.

6. The plans submitted for permit shall address truck traffic issues regarding noise, dust and vehicular and pedestrian safety; the storage of construction materials; clean-up areas; the placement of sanitary and construction facilities; and parking areas for construction vehicles and construction personnel to comply with HMC Chapter 15.26, Construction Management.

Recycling and Waste Reduction

7. Before any demolition and/or construction work is initiated, and before a Demolition or Building Permit is issued, a waste reduction plan shall be submitted to the Building Department for review and approval by the Town's Recycling Coordinator (HMC §15.18.020). The plan shall include, but not be limited to, details on types of materials to be recycled, how they will be transported, and to what facility they will be taken for -264-
Standard Conditions
May 8, 2006 (reformatted 04-03-13)
3 recycling. A waste reduction plan packet that includes resource lists and specific recycling requirements is available at the Building Department counter. The Town’s Recycling Coordinator is available to provide information and assistance on all aspects of compliance with Town recycling requirements, including the location of recycling facilities and their services. Violation of recycling requirements shall subject the violator to a penalty of up to ten times the Building or Demolition Permit fee (HMC §15.18.040).

8. Reusable items and materials shall be removed before demolition; mixed debris shall be taken to a mixed-debris recycling facility having a franchise agreement with the Town of Hillsborough, and like materials (e.g., scrap wood, metal, glass) shall be kept clean and separated for recycling. Use of debris box service shall be limited to those with franchise agreements with the Town (HMC Chapter 8.12).

Tree Protection

9. An arborist report and tree protection plan shall be submitted to the Building Department to ensure the survival of all trees that are designated "to remain" on the approved plans and which are subject to damage by construction activities and equipment and/or the storage of materials (HMC Chapter 14.04). Please see the attached sheet, Tree Protection for Construction Sites, for further information.

10. Tree protection measures identified in the tree protection plan must remain in place and adequately ensure the protection throughout the construction process; violation of this requirement shall result in a “Stop Work” order issued to the job site and may result in penalties including requirements for tree restoration and/or replacement subject to the direction of the City Engineer (HMC §14.04.06).

11. Trees to be installed within the public right-of-way shall be installed a minimum of seven (7) feet behind the back of existing curb and gutter. Trees planted in the right-of-way shall be installed with root shields/barriers. All work within the right-of-way shall require an Encroachment Permit from Public Works (HMC §21.24.010).

12. Any existing tree within an existing public utility easement where utilities exist shall be removed and replaced outside the easement area. No new trees shall be planted within easements where utilities exist.

Erosion and Sediment Control

13. Developers/owners/ builders of projects that disturb one acre or more of land area are required to show clearly on the plans the area of land disturbance. The applicant shall also demonstrate proof of permit coverage from the State Water Resource Control Board under the State Construction Activity Stormwater General Permit, consistent with the Town’s National Pollution Discharge Elimination System (NPDES) permit, prior to obtaining a Grading Permit for the site (HMC §15.24.120). For more information please go to the State Water Resource Control Board’s website at:
http://www.swrcb.ca.gov/stormwtr/docs/finalconstpermit.pdf

14. Regardless of project size, an erosion and sediment control plan shall be submitted for review and approval in conjunction with the plans for Building Permit (HMC Chapter

15.24). The erosion control plan shall be in compliance with the Town’s Storm Water Pollution Prevention Program (STOPPP) including but not limited to perimeter erosion -265-
Standard Conditions
May 8, 2006 (reformatted 04-03-13)
4 control, slope protection, dust control, street sweeping, storm drain inlet protection, concrete handling and disposal, and stockpile sediment control.

15. The approved erosion control plan shall be implemented continually for the duration of the project until landscaping or ground cover is installed and established.

16. All project contractors and the property owner(s) shall comply with NPDES Best Management Practices (BMPs) to prevent contaminated or non-storm water discharge into the storm drain system (HMC §13.50.040 and §13.50.120). General guidance for selecting and implementing BMPs can be found at:
http://www.cabmphandbooks.com/Construction.asp

17. Failure to comply with the approved construction BMPs will result in the issuance of correction notices, citations and/or a project “Stop Work” order. Fee schedules have been established for additional inspections and for “Stop Works” (HMC §13.50.150 and §13.50.180).

Landscaping Installation and Maintenance

18. For new houses, landscaping shall be installed within 6 months of the date of issuance of a Certificate of Occupancy. Provided, however, that the applicant shall obtain a final inspection within one (1) year of the sheetrock nailing inspection (HMC §17.56.090(A)).

19. For additions and remodels, all new landscaping indicated on the plans (or required by condition) shall be installed and have received the final inspection prior to securing a final inspection from the Building Department on the house (HMC §17.56.090(B)).

20. All landscaping shall be installed in compliance with the Town’s National Pollution Discharge Elimination System (NPDES) permit (HMC §13.50.120 and §15.24.120).

21. All landscaping shall be properly installed, using soil amendments and other techniques to ensure successful growth, and shall be properly maintained in good health (or replaced) for a period of at least 90 days (HMC §8.16.035 and §13.50.010).

Lighting and Street Numbers

22. Exterior lights (including those on façades, walkways, pilasters, porches, etc.) shall be installed in such a manner that there shall be no illumination on adjacent properties, streets, or the sky.

23. The house address shall be clearly delineated with numerals at least 4 inches in height that contrast with their background and are visible from the street. These numerals shall be at the street, rather than on the face of the house.

Driveways

24. Unless otherwise approved by the Fire Department, all new or reconfigured driveways shall have a minimum width of fourteen (14) feet (HMC §12.12.050(E)), with a maximum slope of 16%, except that the first fifteen (15) feet shall have a slope no greater than 5%.

Please also see the Fire Department Requirements listed below. -266-
Standard Conditions
May 8, 2006 (reformatted 04-03-13)
5 25. All new driveway cuts are subject to the approval of the City Engineer and plans shall demonstrate optimum site distance for each location proposed.

Curbs, Gutters and Parking Strips

26. Curbs, gutters, driveway approaches, and parking strips shall be installed or repaired/replaced to Town standards, as required by the City Engineer, prior to the Building Department's final sign-off on the construction project (HMC §12.04.120 and §12.24.070). Please see the attached sheet regarding parking strips.

Grading, Drainage and Utilities

27. Grading, Drainage and Utility plans shall be submitted with the first submittal of plans for plan check to the Building Department, if applicable (see HMC Chapter 15.24). Delays will result if these plans are not submitted with the initial submittal.

28. Grading plans shall include the total area of land disturbance (in square feet) clearly delineated on the plans, total cut/fill/import/export quantities in cubic yards, and total impermeable areas in square feet (structural and hardscape). All quantities shall be shown in tabular form on grading plans (HMC §15.24.040).

29. Positive measures shall be taken during the design of projects that contain basement excavations to prohibit draining/pumping of the ground water after construction is completed. If sub-foundation drains are used they shall not drain any water below the normal high water mark for ground water aquifers/springs. The Geotechnical Engineer of record shall determine the normal high water mark for the project, using defendable engineering methods, and design the project to withstand both lateral earth pressures and hydrostatic pressures. The applicant shall submit plans for dewatering during construction if needed (the plan shall include all discharge locations, methods, and details).

30. All storm water collected from impervious surfaces, including but not limited to roofs, patios/decks and driveways, shall drain to an approved drainage system after filtration / detention through landscaping features where feasible. All roof leaders shall be directed to landscape features prior to being collected in closed conduits which lead to an approved facility. No collected water shall be allowed to drain onto any adjoining property, unless there is an approved easement and an approved drainage facility (HMC §13.50.040).

31. All projects that increase the onsite imperviousness (structural and hardscape) by more than or equal to 1,000 square feet shall be required to detain the difference between the existing and proposed runoff quantities for the site as a whole using the Town’s criteria for calculating runoff.

32. All utilities to, and within, the project shall be placed underground. All public utilities shall be located and provided within public utility easements and sized to meet Town and utility company standards. If the City Engineer determines that installation of a new water main or hydrant is required as a public improvement for fire suppression, these facilities should be installed before framing of the structure begins.

33. Pressure reducing and isolation valves shall be installed for all water services. Isolation valves shall be placed on the discharge side and within one foot of the water meter box (HMC §15.16.080(C)). Pressure reducing valves are required when the system pressure exceeds 80 psi and shall be located on the exterior wall of the structure and/or between -267-
Standard Conditions
May 8, 2006 (reformatted 04-03-13)
6 the isolation valve and the structure. A backflow prevention device shall be installed between the meter and the isolation valve.

34. A water backflow prevention device and isolation valve shall be installed for all irrigation and fire suppression systems (HMC §15.16.085). A pressure-reducing valve may be necessary depending on the maximum operating pressure of the irrigation system.

35. Ultra-low-flush toilets, meeting the Town’s requirements, shall be installed for all remodeled and/or new bathrooms.

36. If the addition, replacement or repair of a sewer lateral is required by the City Engineer, such improvements shall be installed prior to issuance of the Certificate of Occupancy (HMC §13.32.110).

37. Sanitary sewer lateral cleanouts shall be installed at the property line and within three feet of the building as required by the City Engineer and the Building Official (HMC §13.32.080). A sewer backflow prevention device is required on all sewer laterals, unless otherwise waived in writing by the Building Official. The Town’s Backflow Protection Ordinance requires that at least two elements of backwater protection system be installed on all properties by January 2007, unless waived by the Building Official.

Pool, Spa, and Fountain Discharges

38. Pool (including swimming pools, hot tubs, spas and fountains) discharge drains shall not be connected directly to the storm drain system (HMC §13.50.010).

39. When draining is necessary, a hose or other temporary system shall be directed into a sanitary sewer cleanout. The cleanout shall be installed in a readily accessible area within 20 feet of the pool (HMC §13.50.010).

40. Pool water shall be de-chlorinated prior to discharging to the storm drain system (HMC §13.50.010).

Fire Department Requirements

41. Installation of an automatic fire sprinkler system is required for all new homes and accessory structures equipped with sleeping areas, cooking areas and/or bathrooms (HMC §15.20.090).

42. Installation of an automatic fire sprinkler is required for all additions and remodels (or combination thereof) that equal 1,500 sq. ft. or more (HMC §15.20.090(A)(2)).

43. Automatic fire sprinkler systems shall conform to the requirements of the National Fire Protection Association pamphlet #13D for residences. Automatic fire sprinkler contractors should call the Central County Fire Department Fire Prevention Bureau at 650/375-7421 for sprinkler requirements or to schedule a fire flow test (HMC §15.20.090(B)).

44. Every new structure or addition shall have an adequate supply of water for firefighting purposes; this water supply is termed “fire flow”. Fire flow shall be determined at a ratio of water to fire area (square footage per single parcel). Every new structure or addition shall have immediate access to fire hydrants. The number of fire hydrants required per property and their spacing is determined by the amount of required fire flow. Refer to -268-
Standard Conditions
May 8, 2006 (reformatted 04-03-13)
7 Appendix III-A and III-B of the Uniform Fire Code to determine the fire flow for a given amount of square footage and the number of fire hydrants required (California Fire Code, Title 24 §903).

45. An all-weather road surface capable of supporting the weight of fire apparatus shall be in service prior to combustible materials being delivered to the construction site (California Fire Code, Title 24 §8703).

46. All hydrants shall have a 3-foot diameter clearance from all obstructions and 6-foot clear width to the street (California Fire Code, Title 24 §1001.7.2).

47. To maintain an effective firebreak, flammable vegetation and combustible growth shall be removed and cleared away. Fire-resistant landscaping is recommended. (See California Fire Code, Title 24 §1103.2.4)

48. New structures and additions shall be situated such that the furthest point of the entire building shall not exceed 150 feet from the public street (California Fire Code, Title 24 §902).

49. New structures and additions shall be situated such that the furthest point of the entire building shall not exceed 500 feet from the nearest public fire hydrant (California Fire Code, Title 24 Appendix III-B).

50. Roofing materials shall be Class “A” roof coverings as classified by the Uniform Building Code (HMC §15.20.100).

51. Chimneys used in conjunction with fireplaces, barbecues, or heating appliances in which solid fuel is used shall be provided with an approved spark arrestor. Portions of trees that extend within 10 feet of the outlet of any chimney must be removed. (See HMC §

15.20.080.)

52. Wood siding or wood decks are prohibited to any building constructed on a lot contiguous to Town Open Space if such building is located on a slope in excess of ten percent (10%) (HMC §15.20.120 and §15.20.130).

53. Wood siding or wood decks on existing structures shall be removed from any building on a lot contiguous to Town Open Space if such building is located on a slope in excess of ten percent (10%) before any exterior remodeling of such building or structure shall be permitted (HMC §15.20.120 and §15.20.130).

Floodplain Management Regulations - these relate only to the following properties:
50 & 99 Baywood Ave.;
100, 130,150, 170, 190, 194, 222, 230, 240, 250, 260, 310, 320, 330 & 340 Bridge Rd.; 10 & 20 Creekwood Way;
91, 96, 100, 760, 805, 807, 815, 891 & 893 Crystal Springs Rd.; 107, 109, 123 & 139 De Sabla Rd.;
125, 235, 245, 303, 325, 333, 401, 501, 515, 525, 545, 555, 565, 585, 595, 731, 739, 757, 763, 775 & 777 El Cerrito Ave.;
5 & 8 Homs Ct.;
-269-
Standard Conditions
May 8, 2006 (reformatted 04-03-13)
8 15, 25, 30 & 35 Laureldale Rd.;
90 Rockridge Rd.;
300, 320 & 383 Sierra Drive; and,
200, 260 & 270 Stonehedge Rd.

54. Any proposed development in the area designated as “Special Flood Hazard Area” will require a Development Permit, which is a preliminary assessment of the project by the Flood Plain Administrator/City Engineer before an application is made for a Building Permit (HMC §15.44.030).

55. The Flood Plain Administrator/City Engineer shall grant or deny Development Permits in accordance with the HMC Chapter 15.44.

Creek Protection

56. No structures shall be constructed or installed within twenty (20) feet from the top of bank of any water course
.
-270-

TOWN OF HILLSBOROUGH

SAN MATEO COUNTY

TREE PROTECTION FOR CONSTRUCTION SITES
The protection of trees is a high priority in the Town of Hillsborough. Tree protection measures are required prior to issuance of a Grading Permit or a Demolition Permit.

Steps for Tree Protection

1. Consult with an arborist about what measures must be taken to preserve and enhance the life of trees which are designated “to remain” on the site during and after the construction process. Have a report prepared by a licensed arborist.

2. Submit to the Building/Planning Department the arborist report, along with two (2) copies of a tree protection plan which incorporates the recommendations. The plan shall include:
• The specific location of the trees, with the species identified and their actual canopies shown;
• The location of the construction trailer, debris box(es), portable toilets (if any), worker/equipment parking areas (if any), and the staging areas for construction materials;
• A list of the equipment (which is moved by having someone drive/operate it) which will be used for the job; and,
• The locations of, and specifications for, the tree protection measures consistent with the arborist report.

Note: For some jobs the installation of netting will not be a sufficient protection measure; construction fencing may be required to protect the roots of trees, especially if there will be heavy equipment on the site or if grading is involved.

3. When the report and tree protection plan have been approved, install the plan. The approved plan shall be kept on the construction site at all times.

4. Before work on the job may commence, or any Demolition, Grading, or Building Permit is issued, the tree protection measures must be installed and certified by a licensed arborist that the plan has been installed according to the report and the approved plan. To document the arborist's certification, a signed, stamped and dated letter from the arborist must be submitted to the Building Department; once the arborist certification is received, you may arrange for an inspection by the Town.

5. If at any time during the construction period the tree protection measures are found to have been jeopardized, the job will be stopped until steps #2 – 4 have been repeated, including remediation for any potential damage. If damage has occurred sufficient to endanger the life of a tree which was to have been protected, a public hearing to consider mitigation measures may be required.

Tree Protection 1/06
Planning Office
650/375-7411
Fax: 650/375-7415
1600 Floribunda Ave.

Hillsborough
California 94010
-271-

EXHIBIT F
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Date: 03/11/2022
Property: 1950 RALSTON AVE,

HILLSBOROUGH, CA
94010-6456
APN: 028-234-130
County: SAN MATEO
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Property Details Report
Subject Property Location Report Date: 03/11/2022
Property Address 1950 RALSTON AVE Order ID: R75372888
City, State & Zip HILLSBOROUGH, CA 94010-6456
County SAN MATEO COUNTY Property Use Single Family Residential Mailing Address 201 W POPLAR AVE, SAN MATEO, CA 94402-1153 Parcel Number 028-234-130 Census Tract 6056.00 Latitude 37.572127
Thomas Bros Pg-Grid Longitude -122.354684
Legal Description Details Block: 1 Subdivision Name: COUNTRY CLUB MANOR Brief Description: LOT 4 BLOCK 1 COUNTRY CLUB MANOR RSM 40/32 33

TOWN OF HILLSBOROUGH
Current Ownership Information
Primary Owner Name(s) 1950 RALSTON AVE LLC,
Sale Price $4,600,000
Sale Date
Recording Date 06/04/2021
Vesting
Recorder Doc # 2021-086485
Book/Page
Latest Full Sale Information
Details beyond coverage limitations
Financing Details at Time of Purchase
1 Loan Amount $2,990,000 Origination Lender Name FIRST REPUBLIC BANK Loan Type Conventional Recording Doc # 2021-086486
Property Characteristics
Bedrooms 4 Year Built 1955 Living Area (SF) 2,630
Bathrooms/Partial 3 Garage/No. of Cars Attached
Garage/2 Price ($/SF)
Total Rooms 8 Stories/Floors 1 Story Lot Size (SF/AC) 22,500/.52 Construction Type No. of Units Fireplace
Exterior Walls No. of Buildings Pool Pool (yes) - P
Roof Material/Type Basement Type/Area Heat Type Central Foundation Type Style A/C Central
Property Type Residential View Elevator
Land Use Single Family Residential Zoning
Assessment & Taxes
Assessment Year 2021 Tax Year 2021 Tax Exemption
Total Assessed Value $298,952 Tax Amount $7,806.94 Tax Rate Area 6-001 Land Value $101,915 Tax Account ID
Improvement Value $197,037 Tax Status No Delinquency Found Improvement Ratio 65.91% Delinquent Tax Year
Total Value Market Improvement Value
Market Land Value Market Value Year
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Lien History
Trans. ID Recording Date Lender Amount Purchase Money
1 06/04/2021 FIRST REPUBLIC BANK $2,990,000 YES
Loan Officer Insights
Trans.ID
1 Loan Officer JULIE B HARKINS NMLS#487250
Broker NMLS#
Loan Company FIRST REPUBLIC BANK NMLS#362814

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Comparables Report - Quick View
Subject Property Location Report Date: 03/11/2022
Property Address 1950 RALSTON AVE Order ID: R75372889
City, State & Zip HILLSBOROUGH, CA 94010-6456 County: SAN MATEO Comparable Sales 20 Comps
Pin Sale
Type Address Record Date Sale Price S/SF LivingSF Rm Bd Ba Year Lot SF Pool Dist SUBJECT PROPERTY 06/04/2021 $4,600,000 2,630 8 4 3 1955 22,500/.52 Pool (yes) - P 1 25 ASTER AVE 09/13/2021 $10,650,000 $1,690 6,300 12 5 6.5 1987 26,961/.62 Pool (yes) - P 0.14 2 245 CHAPIN LN 11/30/2021 $4,500,000 $1,500 3,000 10 4 3.5 1931 6,560/.15 Pool (yes) - P 0.17 3 1616 RALSTON AVE 12/14/2021 $3,888,000 $1,543 2,520 9 4 3 1924 8,216/.19 Pool (yes) - P 0.2 4 774 EDGEWOOD RD 02/10/2022 $2,200,000 $1,264 1,740 6 3 1.5 1924 4,050/.09 0.3 5 720 EDGEWOOD RD 11/02/2021 $3,300,000 $1,507 2,190 7 4 3 1920 6,525/.15 0.35 6 747 COSTA RICA AVE 11/19/2021 $3,025,000 $1,567 1,930 6 3 2 1953 10,951/.25 Pool (yes) - P 0.36 7 512 WARREN RD 10/22/2021 $4,050,000 $1,587 2,552 10 4 3.5 1920 8,122/.19 Pool (yes) - P 0.38 8 724 COSTA RICA AVE 11/12/2021 $2,198,000 $1,316 1,670 6 3 2 1952 5,346/.12 0.42 9 615 BREWER DR 12/01/2021 $14,744,500 $1,954 7,545 15 6 6 1922 40,548/.93 Pool (yes) - P 0.44 10 1515 HOWARD AVE 09/17/2021 $5,450,000 $1,433 3,804 11 5 4.5 2012 8,700/.2 Pool (yes) - P 0.44 11 170 WARREN RD 11/16/2021 $3,475,000 $1,838 1,891 7 3 2 1922 5,664/.13 0.54 12 450 EDGEWOOD RD 11/29/2021 $3,200,000 $1,139 2,810 9 5 3 1933 13,776/.32 0.56 13 517 DORCHESTER RD 11/18/2021 $4,050,000 $998 4,058 9 3 2.5 1925 13,376/.31 0.6 14 150 SYCAMORE AVE 11/16/2021 $10,000,000 $1,443 6,930 16 7 6.5 1941 49,702/1.14 Pool (yes) - P 0.6 15 421 OCCIDENTAL AVE 11/15/2021 $3,682,000 $1,089 3,380 9 5 3 1914 11,550/.27 0.62 16 20 WARREN RD 12/10/2021 $4,500,000 $1,822 2,470 7 3 3 1956 15,834/.36 0.7 17 1004 DRAKE AVE 10/21/2021 $1,900,000 $1,652 1,150 5 3 2 1925 4,650/.11 0.8 18 219 W POPLAR AVE 10/27/2021 $7,350,000 $2,076 3,540 9 4 4 1910 20,300/.47 Pool (yes) - P 0.82 19 812 PROSPECT ROW 01/07/2022 $3,300,000 $1,107 2,982 8 4 3 1922 7,250/.17 0.83 20 19 SAINT JOHNS CT 09/29/2021 $1,130,000 $1,395 810 4 2 1 1927 4,100/.09 0.83 Area Sales Analysis
Total Area Sales/ Count $96,592,500/ 20 Median # of Baths 3 Median Lot Size (SF/AC) 8,458 /.19 Price Range - 2 years $1,130,000 - $14,744,500 Median # of Bedrooms 4 Median Year Built 1925 Age Range 10 - 112 Median Living Area (SF) 2,681 Median Value $3,785,000 Median Age 97 Median Price ($/SF) $1,504/SF

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Transaction History Report - Detailed View
Subject Property Location Report Date: 03/11/2022
Property Address 1950 RALSTON AVE Order ID: R75372890
City, State & Zip HILLSBOROUGH, CA 94010-6456
County SAN MATEO COUNTY Property Use Single Family Residential Mailing Address 201 W POPLAR AVE, SAN MATEO, CA 94402-1153 Parcel Number 028-234-130 Transaction Summary
Trans
ID
Recording
Date
Document
Type
Document
Description
Sale Price /
Loan Amount
Document
Number
Buyer /
Borrower Seller
1 06/04/2021 Mortgage Conventional $2,990,000 2021-086486 1950 RALSTON AVE LLC 2 06/04/2021 Deed Grant Deed $4,600,000 2021-086485 1950 RALSTON AVE LLC MERSMAN, JOAN M; NITA

V MERSMAN MCCARTHY
TRUST
3 01/21/1997 Deed Intra-family Transfer or
Dissolution 97006997 MCCARTHY, NITA VMERSMAN MERSMAN NITA V Transaction History Legend
Transfer Mortgage Mortgage Assignment
Foreclosure Activity Mortgage Release
Transaction Details
Mortgage
Transaction ID 1 Recorder Doc
Number 2021-086486 RecorderBook/Page
Mortgage Date Document Type Mortgage Rate Change
Freq Annually
Loan Amount $2,990,000 Document
Description Conventional 1st PeriodicFloor Rate 2.95%
Loan Type Conventional Recording Date 06/04/2021 1st Periodic Cap Rate 10.95%
Origination
Lender Name FIRST REPUBLIC BANK OriginationInterest Rate 2.55% Lifetime CapRate 10.95% Origination
Lender Type Bank First RateChange Date 07/01/2028 Change Index Type Financing Fixed To Adjustable Maturity Date 07/01/2051 IO Period Borrower 1 1950 RALSTON AVE LLC Balloon Rider Prepayment Penalty Rider
Borrower 2 Fixed/Step Rate
Rider Rate starts as Fixed PrepaymentPenalty Term
Additional
Borrowers Adj Rate Rider Adj Rate Index
Vesting
Transfer
Transaction ID 2 Recorder Doc
Number 2021-086485 Partial InterestTransferred
Sale Date 05/27/2021 Document Type Deed Type of
Transaction Arms-Length Transfer
Sale Price $4,600,000 Document
Description Grant Deed Multiple APNs onDeed 2
Recorder
Book/Page Recording Date 06/04/2021 Property Use
Buyer 1 1950 RALSTON AVE LLC Buyer 1 Entity Limited Liability Company Buyer Vesting Buyer 2 Buyer 2 Entity Buyer Mailing
Address
201 W POPLAR AVE, SAN
MATEO, CA 94402-1153
Seller 1 MERSMAN, JOAN M Seller 1 Entity Trustee or Conservator Seller Mailing Address
Seller 2 NITA V MERSMAN
MCCARTHY TRUST Seller 2 Entity Trust Legal City/
Muni/ Township HILLSBOROUGH
-277-

Legal Recorder's
Map Ref MB 40 PG 32&33 LegalSubdivision

COUNTRY CLUB MANOR

HILLSBOROUGH

CALIFORNIA
Legal Section/
Twn/ Rng/ Mer
Legal Brief Description/ Unit/ Phase/
Tract
Title Company
Name

NORTH AMERICAN TITLE
CO INC
Transfer
Transaction ID 3 Recorder Doc
Number 97006997 Partial InterestTransferred
Sale Date 01/14/1997 Document Type Deed Type of
Transaction Non Arms-Length Transfer
Sale Price Document
Description
Intra-family Transfer or
Dissolution
Multiple APNs on
Deed
Recorder
Book/Page Recording Date 01/21/1997 Property Use
Buyer 1 MCCARTHY, NITA V
MERSMAN Buyer 1 Entity Trustee or Conservator Buyer Vesting Revocable Trust Buyer 2 Buyer 2 Entity Buyer Mailing
Address
1950 RALSTON AVE,

HILLSBOROUGH, CA
94010-6456
Seller 1 MERSMAN NITA V Seller 1 Entity Seller is owner on current Assessment File
Seller Mailing
Address
1950 RALSTON AVE,
HILLSBOROUGH, CA 94010
Seller 2 Seller 2 Entity Legal City/
Muni/ Township HILLSBOROUGH
Legal Recorder's
Map Ref
Legal
Subdivision
Legal Section/
Twn/ Rng/ Mer
Legal Brief Description/ Unit/ Phase/
Tract
LOT 4 BLOCK 1 COUNTRY CLUB MANOR RSM
40/32 33 TOWN OF HILLSBOROUGH/ / /
Title Company
Name

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Nearby Neighbors Report
Subject Property Location Report Date: 03/11/2022
Property Address 1950 RALSTON AVE Order ID: R75372891
City, State & Zip HILLSBOROUGH, CA 94010-6456
County SAN MATEO COUNTY Property Use Single Family Residential Mailing Address 201 W POPLAR AVE, SAN MATEO, CA 94402-1153 Parcel Number 028-234-130 Nearby Neighbor #1
Address 1950 RALSTON AVE, HILLSBOROUGH, CA 94010 APN 028-234-130 Owner 1950 RALSTON AVE LLC, Lot Size (SF/AC) 22,500/.52 Bedrooms 4 Year Built 1955 Living Area (SF) 2,630
Bathrooms/Partial 3 Garage/No. of Cars Attached
Garage/2 Phones
Nearby Neighbor #2
Address 30 COUNTRY CLUB DR, HILLSBOROUGH, CA 94010 APN 028-234-040 Owner GALANTE DANA M TR; GALANTE DANA M TRUST Lot Size (SF/AC) 25,500/.59 Bedrooms 3 Year Built 1956 Living Area (SF) 3,254
Bathrooms/Partial 2.5 Garage/No. of Cars Attached
Garage/3 Phones
Nearby Neighbor #3
Address 2000 RALSTON AVE, HILLSBOROUGH, CA 94010 APN 028-234-140 Owner MARR ELIZABETH A TR; MARR ELIZABETH A Lot Size (SF/AC) 23,104/.53 Bedrooms 4 Year Built 1956 Living Area (SF) 2,470
Bathrooms/Partial 3 Garage/No. of Cars Carport/2 Phones Nearby Neighbor #4
Address 1900 RALSTON AVE, HILLSBOROUGH, CA 94010 APN 028-234-120 Owner FITZGERALD HERMAN H TR; FITZGERALD ANGELA M TR Lot Size (SF/AC) 22,315/.51 Bedrooms 4 Year Built 1959 Living Area (SF) 3,190
Bathrooms/Partial 3.5 Garage/No. of Cars Attached
Garage/2 Phones
Nearby Neighbor #5
Address 20 COUNTRY CLUB DR, HILLSBOROUGH, CA 94010 APN 028-234-030 Owner CHANG AUDREY TR CHANG LOUIS TR Lot Size (SF/AC) 26,455/.61 Bedrooms 4 Year Built 2019 Living Area (SF) 4,319
Bathrooms/Partial 5.5 Garage/No. of Cars Carport/2 Phones Nearby Neighbor #6
Address 2001 RALSTON AVE, HILLSBOROUGH, CA 94010 APN 028-261-080 Owner BERGH HOWARD S JR TR; BERGH WENDY RIDDER TR Lot Size (SF/AC) 26,727/.61 Bedrooms 4 Year Built 1957 Living Area (SF) 2,510
Bathrooms/Partial 3.5 Garage/No. of Cars Attached
Garage/2 Phones
Nearby Neighbor #7
Address 165 ELM AVE, HILLSBOROUGH, CA 94010 APN 028-262-010 Owner POLETTI RICHARD L TR Lot Size (SF/AC) 35,503/.82
Bedrooms 6 Year Built 1929 Living Area (SF) 4,350
Bathrooms/Partial 5 Garage/No. of Cars Underground/Basement/2 Phones -279-

Nearby Neighbor #8
Address 1845 RALSTON AVE, BURLINGAME, CA 94010 APN 028-263-140 Owner WONG BETTY HOI NING; EMCO INTL Lot Size (SF/AC) 6,909/.16 Bedrooms 3 Year Built 1977 Living Area (SF) 2,500
Bathrooms/Partial 3 Garage/No. of Cars Underground/Basement/3 Phones Nearby Neighbor #9
Address 50 COUNTRY CLUB DR, HILLSBOROUGH, CA 94010 APN 028-234-050 Owner BROD NORMAN BERNARD TR ANDREWS PEGGY TR Lot Size (SF/AC) 31,680/.73 Bedrooms 4 Year Built 1957 Living Area (SF) 2,920
Bathrooms/Partial 4 Garage/No. of Cars Attached
Garage/2 Phones
Nearby Neighbor #10
Address 2050 RALSTON AVE, HILLSBOROUGH, CA 94010 APN 028-234-150 Owner ROSS BARRY W TR ROSS CAROLYNE TR Lot Size (SF/AC) 22,275/.51 Bedrooms 3 Year Built 1959 Living Area (SF) 3,020
Bathrooms/Partial 2.5 Garage/No. of Cars Attached
Garage/2 Phones
Nearby Neighbor #11
Address 1850 RALSTON AVE, HILLSBOROUGH, CA 94010 APN 028-234-110 Owner COURNEEN CASEY & VANESSA Lot Size (SF/AC) 23,250/.53 Bedrooms 3 Year Built 1959 Living Area (SF) 2,380
Bathrooms/Partial 2.5 Garage/No. of Cars Garage/3 Phones Nearby Neighbor #12
Address 10 COUNTRY CLUB DR, HILLSBOROUGH, CA 94010 APN 028-234-180 Owner CEREMSAK ROBERT J JR TR; CEREMSAK KATHERINE K TR Lot Size (SF/AC) 25,987/.6 Bedrooms 3 Year Built 1962 Living Area (SF) 4,193
Bathrooms/Partial 5 Garage/No. of Cars Attached
Garage/3 Phones
Nearby Neighbor #13
Address 35 COUNTRY CLUB DR, HILLSBOROUGH, CA 94010 APN 028-233-030 Owner WYNNE HANNAH M TR Lot Size (SF/AC) 22,801/.52
Bedrooms 5 Year Built 1960 Living Area (SF) 3,960
Bathrooms/Partial 4 Garage/No. of Cars Garage/2 Phones
Nearby Neighbor #14
Address 172 ELM AVE, BURLINGAME, CA 94010 APN 028-263-150 Owner STRACCIA ROBERT A TR STRACCIA BETHELLEN TR Lot Size (SF/AC) 14,500/.33 Bedrooms 5 Year Built 1920 Living Area (SF) 2,930
Bathrooms/Partial 3.5 Garage/No. of Cars Detached
Garage/2 Phones
Nearby Neighbor #15
Address 2051 RALSTON AVE, HILLSBOROUGH, CA 94010 APN 028-261-070 Owner WEINSTEIN JOEL G TR; WEINSTEIN PATTY D TR Lot Size (SF/AC) 27,536/.63 Bedrooms 5 Year Built 1952 Living Area (SF) 3,280
Bathrooms/Partial 5 Garage/No. of Cars Underground/Basement/3 Phones

-280-

Assessor Map Report
Subject Property Location Report Date: 03/11/2022
Property Address 1950 RALSTON AVE Order ID: R75372892
City, State & Zip HILLSBOROUGH, CA 94010-6456
County SAN MATEO COUNTY Parcel Number 028-234-130
Disclaimer
THIS REPORT IS INTENDED FOR USE BY YOU AS AN END USER SOLELY FOR YOUR INTERNAL BUSINESS PURPOSES. YOU SHALL NOT RESELL, RELICENSE OR REDISTRIBUTE THIS REPORT, IN WHOLE OR IN PART. THE USE OF THIS REPORT BY ANY PARTY OTHER THAN YOURSELF FOR ANY PURPOSE IS STRICTLY PROHIBITED. THIS REPORT IS PROVIDED AS-IS WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE. BLACK KNIGHT SHALL HAVE NO LIABILITY IN CONTRACT, TORT, OR OTHERWISE ARISING OUT OF OR IN CONNECTION WITH THIS REPORT. BLACK KNIGHT DOES NOT REPRESENT OR WARRANT THAT THE REPORT IS COMPLETE OR FREE FROM ERROR. YOU UNDERSTAND AND ACKNOWLEDGE THAT THE AVAILABILITY, COMPLETENESS AND FORMAT OF THE DATA ELEMENTS MAY VARY SUBSTANTIANLLY FROM AREA-TO-AREA. THE INFORMATION CONTAINED IN THIS REPORT IS DERIVED FROM

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CONTAINS NO REPRESENTATIONS, OPINIONS OR WARRANTIES REGARDING THE SUBJECT PROPERTY'S ACTUAL MARKETABILITY, CONDITION (STRUCTURAL OR OTHERWISE), ENVIRONMENTAL, HAZARD OR FLOOD ZONE STATUS, AND ANY REFERENCE TO ENVIRONMENTAL, HAZARD OR FLOOD ZONE STATUS IS FOR INFORMATIONAL PURPOSES ONLY AND SHALL BE INDEPENDENTLY VERIFIED BY THE END USER. THE INFORMATION CONTAINED HEREIN SHALL NOT BE UTILIZED: (A) TO REVIEW OR ESTABLISH A CONSUMER'S CREDIT AND/OR INSURANCE ELIGIBILITY OR FOR ANY OTHER PURPOSE THAT WOULD CAUSE THE REPORT TO CONSTITUTE A "CONSUMER REPORT" UNDER THE FAIR CREDIT REPORTING ACT, 15 U.S.C. § 1681 ET SEQ.; OR (B) IN CONNECTION WITH CERTIFICATION OR AUTHENTICATION OF REAL ESTATE OWNERSHIP AND/OR REAL ESTATE TRANSACTIONS. ADDITIONAL TERMS AND CONDITIONS SHALL APPLY PURSUANT TO THE APPLICABLE AGREEMENT.

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CONFIDENTIAL, PROPRIETARY AND/OR TRADE SECRET. TM SM ® TRADEMARK(S) OF BLACK KNIGHT IP HOLDING COMPANY, LLC, OR AN AFFILIATE. © 2022 BLACK KNIGHT TECHNOLOGIES, LLC. ALL RIGHTS RESERVED.

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-281-

EXHIBIT G
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-293-
-294-
-295-

EXHIBIT H
-296-
Town of Hillsborough 10/27/2022
4:17:15PM

INSPECTION ACTIVITY REPORT
Permit No. COM18-0043
Description NSFR & POOL HOUSE after Teardown

LATALA HOMES INC

COURNEEN CASEY & VANESSA

DAVIS ARCHITECTURE
Contractor
Owner
Applicant
10/4/2018
7/5/2018
2/20/2018
Issued
Approved
Applied
Notes
Result
Completed Inspection Type Inspector
Scheduled
Remarks
Site Address 1850 RALSTON AVE
Lot
Block
Tract
Parent Permit No.

Notes
Requested
Time / By
2/20/2018 RECYCLE FINAL WR
09:36 MMC1
2/20/2018 NPDES
09:36 MMC1
1/24/2019
1/24/2019
TA Corrections
c attached
BOND

EXPIRATION
1/24/2019
12:56 TA1
3/19/2019 1CSG
VOIDED (JW 3/19/2019)
3/18/2019 Underslab Plumbing
08:42 JW
4/1/2019
4/1/2019
3/29/2019 Underslab Plumbing WR Pass
10:57 OC1
4/19/2019
4/19/2019
1CSG Pass
mat slad for basement
Underslab
Membrane
4/17/2019
13:53 OC1
4/19/2019
4/19/2019
1CSG Pass
rebar for slab and retaining wall
4/17/2019 Foundation
13:53 OC1
6/3/2019
6/3/2019
P J Pass
@ Basement
5/29/2019 Retaining Walls
11:59 OC1
7/15/2019
7/15/2019
TA Partial w/Corr
warning- exp 6-4-2020
BOND

EXPIRATION
7/15/2019
10:17 TA1
8/29/2019
8/29/2019
WR Pass
entire house underslab complete
8/27/2019 Underslab Plumbing
09:46 JW
9/12/2019
9/12/2019
LUCA Pass
pool house & main house
9/9/2019 Foundation
15:26 MMC1
11/25/2019
11/25/2019
TA Pass

OK TO COVER
Roof
Diaphragm-Naili
11/20/2019
16:03 MCH
11/25/2019
11/25/2019
TA Pass
ok to cover
11/25/2019 Exterior Shear
13:57 TA1
7/13/2020
7/14/2020
7/7/2020 Rough Plumbing 1CSG Pass
12:25 WR
7/13/2020
7/14/2020
1CSG Pass

RUDY CSG
7/7/2020 Rough Mechanical
12:25 WR
7/13/2020
7/14/2020
7/7/2020 Rough Electrical 1CSG Pass
12:25 WR
7/14/2020
7/14/2020
JUAN SERRANO CSG Partial (7/14/2020 7:28 PM 1CSG)
Rough Frame: More work needed
Corrections:
***Missing A/B's at locations marked by
contractor
***Double top plate penetrations, over
notching/boring. Only a few and
Contractor marked marked with paint and
permanent markers. Strap with 16 gauge
minimum. ALso, a minimum of 8 screws or
nails must on each side of the strap past the
last splice.
*** Skylights need Simpsons strong tie
(A35's ) to fasten all four interior corners of
framing.

OK TO INSULATE AND ABOVE ITEMS

WILL BE CONFIRMED AS CORRECTED
AT INSULATION INSPECTION.
*** READ NOTES ***
7/14/2020 Rough Frame
16:35 WR
INSP_DETAILS -297-
Town of Hillsborough 10/27/2022
4:17:15PM

INSPECTION ACTIVITY REPORT
7/20/2020
7/20/2020
JUAN SERRANO CSG Pass (7/20/2020 3:34 PM WR)
Insulation: APPROVED
Corrections made.. OK
Paul – 408.5153.9205
7/14/2020 Insulation - CF-6R F
15:20 VG
8/11/2020
8/11/2020
JUAN SERRANO CSG Partial (8/11/2020 3:11 PM MG)
Drywall: APPROVED
All levels, walls and ceilings completed
except family room. Pending City Approval.
*** NOTE *** Read Notes
8/10/2020 DRYWALL
11:42 MCH
8/11/2020
8/11/2020
JUAN SERRANO CSG Pass (8/11/2020 3:04 PM MG)
Stucco / Lath: APPROVED
Completed full wrap... OK
Stucco / Lath: Completed full wrap
8/11/2020 Stucco Lath
15:03 MG
8/27/2020
8/27/2020
WR Not ready
gas not under pressure, C/O NOT CORRECT
8/25/2020 Under Plumb/Elect
11:39 MCH
9/2/2020
9/2/2020
WR Pass

UG GAS, ELECTRIC, SEWER

LATERALS,WATER
9/1/2020 Underground Utilitie
09:57 MCH
9/9/2020
9/9/2020
9/3/2020 Underground Utilitie RUDY Pass
09:02 MCH
10/19/2020
10/19/2020
10/16/2020 Int Lath-Tub Overflo WR Pass
09:25 MCH
10/19/2020
10/19/2020
Shower Pan WR Pass
(Protect)
10/16/2020
09:25 MCH
11/2/2020
11/2/2020
10/29/2020 Gas Release WR Pass
13:56 MCH
1/19/2021
1/19/2021
WR Failed

NOT PER PLAN
1/15/2021 Drainage
11:49 MCH
1/19/2021
1/19/2021
WR Failed

ALLREADY BACKFILLED
1/15/2021 Detention System
11:49 MCH
1/27/2021
1/27/2021
1/26/2021 Electrical Release WR Pass
16:37 WR
2/25/2021
2/25/2021
WR Corrections
list made
2/17/2021 Health Life Safety
12:46 MCH
3/2/2021
3/2/2021
WR Pass
OK for TCO
2/25/2021 Health Life Safety
11:58 MCH
3/2/2021
3/2/2021
TA Pass
BOND STOPS 3-2-2021
BOND

EXPIRATION/WAR
3/2/2021
10:00 TA1
9/10/2021
9/15/2021
JUAN Pass (9/14/2021 6:41 PM 1CSG)
Health Life Safety: Partial Approved
For Final must ...

1.) P.V. system Electrical Final must label
entire Main Electrical Panel / Sub panels so
that the average person can easily identify
and understand what each individual
breaker does.

2.) All doors having access exterior open
spaces must be provided with exterior
lighing of minimum 100 to 200 lumens.

3.) Final Plumbing is ready to close out at
Building Inspector level. To do this you
must show proof that your encroachment
permit has been signed and finaled by
Public Works.
9/8/2021 Health Life Safety
14:53 MG
11/18/2021
11/19/2021
11/16/2021 **Final WR Pass
11:37 GA
INSP_DETAILS -298-
ln re Administrative Appeal By
Damato/Galante of Town of Hillsborough
Architectural and Design Review Board's
Approvalof 1950 Ralston Avenue, Single
Family Residence - Housing Development
Project

DECLARATION OF GREGORY GAMBRIOLI
l, Gregory Gambrioli, declare:

1. I am a resident of the Town of Hillsborough, a member of the Applicant, 1950 Ralston Ave., LLC, and a principal of RG Developments, lnc., a home building firm specializing in building and remodeling custom homes in the Hillsborough, Burlingame and San Mateo area. The facts stated in this declaration are true as of my own personal knowledge, and if called as a witness I could and would testify competently to such facts.

2. I make this declaration in opposition to the administrative appeal to the City Council of the Town of Hillsborough filed by Appellants Jack Damato and Dana Galante, and in support of the Town Architectural and Design Review Board's ('ADRB") August 1, 2022 approval of the Applicant's Project to construct a new single family residence at 1950 Ralston Ave. in the Town of Hillsborough.

3. I am a builder with three decades of experience in the custom home construction industry. I hold an active Galifornia general contractor's license (#744981). My experience and expertise includes all aspects of high-end custom home construction, including, but not limited to, equipment acquisition and operation, materials acquisition, all aspects of carpentry and construction, and appliance selection and installation, as well as estimating the costs of all aspects of a construction project. Attached as Exhibit 1 to this declaration is a true and correct copy of my short form resume, which accurately states my experience and qualifications in plain and simple language.

4. I am intimately familiar with the Project and Property at 1950 Ralston Ave.; home designer Tim Raduenz designed the home that was approved by the ADRB on August 1, 2022, and I am the Applicant member who will build it based on Tim's design as RLNA-s8732t2702046.2
-299-
ATTACHMENT 7
approved by ADRB. As relevant background, the Town accepted and deemed the Project application complete on July 15,2022. Story poles were erected per the Town's requirements and remained in place from July 22 to August23,2Q22.

5. Based on the Applicant's communications with them, up to and including the most recent meeting on November 2,2022, the Appellants oppose the Project solely because it is designed with a partial second story living area above a portion of the first floor.

They have claimed that the second level living space can easily be built underground instead of above the first floor, but that is not true. ln fact, excavating and building underground at the Property is not economically feasible, and no reasonably prudent owner would undertake to do so due to the Property's physical constraints, as explained further below.

6. The Property has a very high water table, which I believe is due in substantial part to its location in proximity to an active creek running through the properties to the rear of the lot. Given that fact, and the massive excavation that would be required to construct living space equivalent to that provided by the Project's partial second story underground, the Applicant would be required to develop and implement sophisticated, complicated, and expensive systems to dewater and "shore up" the excavated area. These systems would be required in order to allow construction to proceed while stabilizing and preventing damage to the Property. We would also have to arrange for hauling away and disposal of substantial amounts of spoils - essentially excavated soils, mud and other materials - during construction. Performing this work would be extremely expensive, and would pose the risk of additional significant adverse physical environmental impacts associated with construction that are avoided or lessened by the Project's current and ADRB-approved design; such additional or more severe impacts could include additional traffic and staging area impacts, truck haul and disposal impacts for the spoils, possible flooding, subsidence, creek dewatering, erosion and water quality (e.9., sedimentation) impacts, and noise and emissions impacts from additional required on-site equipment. These additional potential construction impacts could RLNA-58732\2702046.2
-300-
require additional environmental review, and threaten to render inapplicable the CEQA exemption the Project currently enjoys.

7. Modifying the Project to "go underground" with a level of living area, as Appellants suggest, would likely add millions of dollars to the Project's costs. I estimate that implementing the pumping and shoring systems that would be needed to dewater and stabilize the excavated basement area during construction would alone add $1.5 million or more to the cost. The large backup generator needed to prevent a loss of power to the pump system (and resulting flooding and destabilization) in an emergency (or planned) power outage would add another $150,000 or more. The additional time required for underground construction would also be substantial - at least an additional 12 months or more - and during such time the carrying costs on the Property (taxes, insurance, mortgage payments) would increase by another approximately $295,000 or more. These amounts do not include increasing construction, materials and fuel costs in an inflationary economy, or in a worst case scenario, potential additional CEQA review and litigation costs, which our attorney estimates could cost additional hundreds of thousands of dollars and years of delay. Further, as those in the building industry are keenly aware, a construction defect suit alleging water intrusion damages and/or other issues related to subterranean construction in a high water table could be brought against the Applicant at any time for a period of up to ten years after sale of the home.

8. Based on the foregoing, and my 30 years of experience in the residential custom home building industry, it is my opinion that no reasonably prudent owner of the Property would pursue underground construction there because it is economically infeasible, could not be successfully completed in a reasonable period of time, and presents numerous additional risks that a prudent owner would avoid. My opinion on this issue appears to be confirmed by the fact that the project at 1850 Ralston Avenue involving underground construction took more than three years to complete, which is much longer than a two-story house built by a competent builder should reasonably have taken.

RLNA-58732U702046-2
-301-

9. While it should not be relevant to whether the ADRB's approval of the Applicant's Project should be affirmed by the City Council, since the Project clearly meets allthe Town's applicable requirements, the Appellants submitted to the Town a list of the names of owners/occupants of 17 area residences who allegedly supported their appeal. Attached hereto as Exhibit 2 are true and conect copies of statements signed by the ownersloccupants of 14 other neighborhood residences who attest that they have actually reviewed the plans and landscape design for our approved two-story Project and express that they have no issues with its design; it is my expectation that the Applicant will have even more such statements to submit to the City Council either at or before the next hearing.

10. Contrary to claims made by Appellant Jack Damato and others at the City Council's first, October 10, 2022 appeal hearing, full and complete Project landscaping plans were duly on file with and considered by the Town's ADRB at the time it approved the Project.

True and corect copies of key portions of those landscape plans are attached hereto as Bhjb!! ! and show the extensive ptantings of trees and vegetation for privacy screening around the Project Property's perimeter that have always been proposed.

I declare under the foregoing to be true and correct under penalty of perjury under the laws of the State of California. Executed this 440", of Novemb er,2022, at Hillsborough, California.

Gambrioli
-302-
EXHIBIT 1
-303-

GREGORY GAMBRIOLI

RG DEVELOPMENTS
650. 33 3 -68 44 I rgdev elopemtsi nc@ya hoo. com
BIO
Greg Gambrioli is a top builder and developer in the bay area, exclusively bullding in Hillsborough, Burlingame and San Mateo, Greg was born and raised in Burlingame, attended Burlingame High School and St. Mary's College, Greg started a Family near his original Family Home in Burlingame where he and his wife, Gina, raised three children. The Family moved to their current residence in Hillsborough in 2007.

EXPERIENCE
Greg was trained in construction by his wife's father and Master Carpenter, Victor Bowers starting in 1992. "Vic" constructed homes with creativity, mindset and skills akin to an era of time long passed in construction.

Greg excelled at his craft and when Vic retired Greg started RG Developments.

Greg sought to center his business on building homes that "mattered" and was blessed to possess the skills to, in turn, become sought after by clients and well-known Architects who knew/know that Greg can erect the homes in the manner of which they were created on paper.

Greg has remodeled and built dozens of homes in the area and is proud of each and every project he completes.
a
a
a
a
SKILLS
Greg possesses the technical know-how to construct the most sophisticated of homes.

Greg has worked with renowned Architects with demanding tolerances.

Greg studies plans and projects (visually) the planned structure onto the site, applies his keen knowledge of the technical aspects of his craft to assure the perfection of the end product and employs any "work around" that may be dictated by unforeseen conditions.

Greg has a flair to see issues before they arise and communicate the situation to all pafties so that a solution may be effectively implemented.

Every member of Greg's Team is hand selected for their skills, dedication, communication and reputation.

ACKNOWLEDGEMENTS
a
a
a
a
a Greg has been hand selected by local, well known Architects to carry out their creative design, including Farro Essalat, Ken Linsteadt and Stephen Sutro, -304-
a RG Developments has been featured in many publications, including Veranda and Luxe Magazines
a Greg's list of completed projects is available upon request. 2 -305-
EXHIBIT 2
-306-
Subject 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
I (Name) ifie 9Q",5{on have reviewed the proposed plans and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letterftatement does not hold me to this opinion for future review and or comments.

Name:
jb-*-o$--
Address:

Signature
(o-2I >tu
-307-
Subject: 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
I (Name) o/n C-*L have reviewed the proposed plans
and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letterfttatement does not hold me to this opinion for future review and or comments.

Name f,,"^ C*rhAddress
Signature:

Date: l0 -7o " az
-308-
Subject: 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
I (Name have reviewed the proposed plans
and landscape desrgn of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letter/statement does not hold me to this opinion for future review and or comments.

Name:

Address:

Sign ature:

Date Jo {\
-309-
subject: 1950 Ralston Ave - Hillsborough cA 94010
(Design of new 2-story home - review of plans)
I (Name) have reviewed the proposed plans
and landscape of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This lette not hold me to this opinion for future review and or comments. rAtatement does
Name:

Address:

Signature:

Date
y'r
-310-
SubjecB 1950 Ralston Ave - Hillsboroueh CA 94010
(Design of new Z-story home - review of plans)
I (Name) BoTtt have reviewed the proposed plans
and landscape design of proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letterAtatement does not hold me to this opinion for future review and or comments.

FO *IIIORT=NY€LDT
N
Address:

Signature: Y1-
./ Date (" 2Z
-311-
Subject: 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
th
(
I (Name have reviewed the proposed plans
and landscape design of e proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letter/statement does not hold me to this opinion for future review and or comments.

Name: t* tl J
Address
Signatu
Date: $ L( -L?t
Form+one'Design&Planning'lts43silversprlnEsDrive.parkcttv.UT.Raoqn,talqlnlqo?o.r!.rrimafnrmnnadaclm.com -312-
Subject: 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
I (Name) have reviewed the proposed plans
and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letterAtatement does not hold me to this opinion for future review and or comments.

Name: t^-l 1
Address:

Signature:

Date:
-313-
Subject: 1950 Ralston Ave - Hillsboroueh CA 94010
(Design of new 2-story home - review of ptans)
I (Nam have reviewed the proposed plans
-story home and have no issues with and la pe design of the p new 2 the design + overall presentation/layout of the project. This letter/statement does not hold me to this opinion for future review and or comments.

Name
Address:

Signatu
Date )0 2b
-314-
Subjec* 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
I (Name IN have reviewed the proposed Plans
and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letterAtatement does not hold me to this opinion for future review and or comments.

Name.'DrtrNI <.'A q
Address:

Signature:

Date
-315-
Subject: 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
I (Name have reviewed the proposed plans
and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letterfttatement does not hold me to this opinion for future review and or comments.

Name
Address:

Signature
D
-316-
Subject: 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
t lNamel -L uc i A -T.* r o N have reviewed the proposed plans and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letterAtatement does not hold me to this opinion for future review and or comments.

Name: Lc:c-tA, TAPOIV
Addr
Signature s
Date: lo'L9-22
-317-
Subject: 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans|
I (Name) LtNpA LEMBr have reviewed the proposed prans
and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letter/statement does not hold me to this opinion for future review and or comments.

Name: LTNDA LEMBT
Address:

Signature: *
,ritL
1f,r :Jf"dDate 10t28t2022
-318-
subjecH 1950 Ralston Ave - Hillsborough cA 940rc
(Design of new 2-story home - review of plans)
have reviewed the proposed plans
and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letter/statement does not hold me to this opinion for future review and or comments.

Name l.L 1
Signature:

Date:
-319-
Subiect: 1950 Ralston Ave - Hillsborough CA 94010
(Design of new 2-story home - review of plans)
I (Name) (ra q^ rf 4 Aa+thnann have reviewed the proposed plans and landscape design of the proposed new 2-story home and have no issues with the design + overall presentation/layout of the project. This letterAtatement does not hold me to this opinion for future review and or comments.

Lavt N
Addres
t
J
Signature:

Date 0
t
-320-
EXHIBIT 3
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-325-
Jack Damato and Dana Galante
30 Country Club Drive
Hillsborough, CA 94010
November 8, 2022
Hillsborough City Council
c/o City Clerk
[email protected]
1600 Floribunda Avenue
Hillsborough, CA 94010
Re: 1950 Ralston Avenue-Appeal of approval of Two-Story Home To: The Honorable City Council
We are Jack Damato and Dana Galante. We reside at 30 Country Club Drive in Hillsborough, California and we are the appellants in regard to the 1950 Ralston approval. We can be reached at or .

At the outset, we respectfully request that Dr. Sophie Cole, the wife of Lionel Foster, recuse herself from any vote regarding this appeal, as Mr. Foster is one of the ADRB board members that voted in favor of the construction and, in fact, chaired the approval hearing at issue.

We are writing as a follow up to our appeal heard before the city council on 10/10/2022. As requested, by the city council we met with Greg Gambrioli, Britt Miller and Tim Raduenz, the owners and architect of 1950 Ralston. Despite our and our neighbors' very clear requests for a one story home in a historic one story neighborhood, Tim Raduenz, Greg Gambrioli and Britt Miller decided to move forward with their original design. As a neighborhood, we have expressed our concerns since the first ADRB meeting in January 2022. Sadly, despite all of our efforts we were unable to come to an agreement regarding 1950 Ralston.

On Friday, November 4th, Tim Raduenz sent a list of concessions to us and our neighbors that would only be applied if we withdraw our appeal and if all of our neighbors withdraw opposition to the project. We will not be withdrawing our appeal and we can not speak for our neighbors but we thought it would be prudent to submit our responses and to clarify our position on Tim’s concessions. Unfortunately, we can not control what the majority of Country Club Manor neighbors decide, but we can address the concessions as they apply to our home at 30 Country Club.

Concessions #1. Keep fir tree at rear yard.

Our Response: Jack Damato has always preferred that the fir tree be removed. From our perspective, the fir tree is not the issue in this situation.

Received via email 11/9/2022
-326-
ATTACHMENT 8
Concession #3 Keep the garage roof pitched as per original design.

Our Response: We did not suggest this and we are not sure who Tim is referring to in his statement. The pitched roof design was specifically addressed in the August ADRB meeting when board member Gill requested a flat roof over the garage. This is not in line with our desire for a one story home nor is it inline with what was approved at the August ADRB meeting.

Concession #5 Record a deed restriction prohibiting building an ADU on top of the existing garage in the future.

Our response: We would appreciate this since an ADU over the garage would tower over our yard and be a major hindrance to our privacy and our property value.

At our meeting on 11/2, the main concerns of the developer and his investor were the extra time involved in redesign, this appeal and loss of profitability. During the preliminary ADRB meeting in January of 2022, at least 4 of the ADRB board members had voiced concerns about the design being inconsistent with the neighborhood as per Hillsborough design guidelines. We would like to point out that had the owners listened to and respected the advice of the majority of the ADRB board members back in January at the preliminary ADRB meeting, they could have redesigned the home to be consistent with the neighborhood and been at least 6 months into their project by now. Instead, they chose to wait until August to return to the ADRB with little to no changes to their original design of 1950 Ralston.

Jack and I as well as our neighbors appreciate the Hillsborough Town Council’s consideration in this appeal. As per our original appeal, we want to reiterate that we would like a fair and comprehensive review of the project that is inline with current ADRB guidelines and procedural rules as stated in the Hillsborough Municipal Code.

Sincerely,
Dana Galante and Jack Damato
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
6 PUBLIC HEARING

CITY COUNCIL MEETING
NOVEMBER 14, 2022

AGENDA STAFF REPORT
ITEM SUBJECT: PROPOSITION 218 HEARING: RESOLUTION AUTHORIZING RATES FOR SOLID WASTE CHARGES PURSUANT TO CEQA GUIDELINE 15378, 15273 AND PUBLIC RESOURCES CODE SECTION 21080(B)(8)
SUMMARY: The Town of Hillsborough ("Town") undertook a solid waste study to review and determine the rates necessary to fund the revenue requirement in its solid waste system for the next five years starting on January 1, 2023. The study focuses on the funding necessary for the provision of solid waste, composting, and recycling services to customers.

Solid Waste Rate Study
Solid waste, recyclable material, and organic collection services are provided to residential and business customers through a franchise agreement with Recology of San Mateo County (Recology). The franchise agreement began in 2011, and was amended and restated in 2021, with an expiration date of December 31, 2035.

The solid waste rate study evaluates the rates necessary to fund the revenue requirement in its solid waste system for a five-year period starting on January 1, 2023. The key issues that impact the costs are:

1. Covering the projected costs for franchise services and pass-thru tipping fees. The Recology franchise agreement increases based on contractually agreed upon indices. The disposal and processing fees (tip fees) are based on contracts for these services. Franchise fees charged to Recology as a part of the franchise agreement do not exceed the Town’s costs in granting franchise rights to Recology, and compensation for the use of physical, tangible government property.

2. Aligning the rates (based on size of cart) with the projected cost-of-service: The cart charges are reflecting the actual cost of service for each service level (20-gallon cart, 32-gallon cart, etc.).

3. 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 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.
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Agenda Staff Report - Hillsborough City Council
November 14, 2022

A report of the conclusions of the study was prepared by HF&H Consultants. The proposed rate increases outlined in the HF&H Solid Waste Rate Study are effective starting January 1, 2023.

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 by 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 does not exceed the cost the Town incurs in order to grant the franchise to Recology as well as compensation for physical, tangible government property used by Recology in provision of solid waste service. Recology has determined to meet this obligation through billing Hillsborough customers directly.

Process
The rate study process starts with the Town sending 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 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 Solid Waste Rate Study Report.

The proposed rate increases have been reviewed and presented at public meetings held in August and September 2022. The Financial Advisory Committee reviewed the solid waste rate study at its August 2, 2022 meeting and recommends the proposed rate study. The City Council conducted a public Study Session and reviewed the proposed Solid Waste Rate Study in detail on August 8, 2022. The City Council accepted the Solid Waste Rate Study and authorized implementation of the recommendations.
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Agenda Staff Report - Hillsborough City Council
November 14, 2022

A notice of the public hearing to consider the adoption of the proposed new rates for solid waste charges was mailed to property owners and account holders in accordance with California Constitution article XIIID, section 6 (commonly referred to as “Proposition 218”).

The adoption of any new or increases in any existing solid waste charges are subject to the public hearing, notice and majority protest requirements of Proposition 218. The City Council at its September 12, 2022 City Council meeting accepted the Proposition 218 process which outlines the procedures the City Council will follow for providing the notice and receiving and tabulating written protest to any property-related fees and charges it is proposing to consider adopting. In accordance with Proposition 218, the Town mailed a notice of a public hearing to be held on November 14, 2022, to consider the adoption of the proposed increase to its solid waste charges.

The notice was mailed to property owners and account holders directly responsible for the payment of solid waste charges. The information on the number of written protests to the proposed rates received by the Town will be presented by the City Clerk at the conclusion of the public hearing.

FISCAL IMPACT: Revenues are expected to increase by a range of approximately 4% to 5% over the five-year rate period.

ENVIRONMENTAL ISSUES: In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the increases in the solid waste service charges are exempt from CEQA pursuant to Section 15378 and Section 15273 of the CEQA Guidelines and Public Resources Code Section 21080(b)(8) because (i) the increase charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services and (ii) the charges constitute the creation of a funding mechanism/other governmental fiscal activity which does not involve any commitment to any specific project that may result in potential significant physical impact on the environment.

ATTACHMENTS:

1. Resolution

2. HF&H Solid Waste Rate Study Report
PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION:

1. Open the public hearing and receive comments;

2. Close the public hearing;

3. Acknowledge information on protests received and presented by the City Clerk at the conclusion of the public hearing;

4. If a majority protest does not exist, adopt the resolution adopting maximum solid waste rates for the five-year period starting January 1, 2023.
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61236.02000\40798450.1
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

AUTHORIZING RATES FOR SOLID WASTE CHARGES PURSUANT TO CEQA GUIDELINE 15378, 15273 AND PUBLIC RESOURCES CODE SECTION 21080(B)(8) WHEREAS, the Town of Hillsborough (“Town”) provides solid waste service to properties within the Town’s service area, and is authorized under Health and Safety Code section 5471 et seq. as well as other applicable law to impose fees and charges for such service; and
WHEREAS, the Town retained an independent consultant to conduct a cost-of-service analysis and rate study for the Town’s solid waste service, and based on such analysis and study, the Town has determined that it is necessary to adjust and increase the rates for solid waste charges within the Town, effective January 1, 2023; and
WHEREAS, the solid waste rates include two customer classes – Residential and Commercial; and
WHEREAS, the rates for Residential customers include a flat service charge, and a service level charge dependent upon the size and quantity of carts serving the parcel; and
WHEREAS, the rates for Commercial customers are determined based on the size and quantity of bins serving each parcel, and the frequency of service; and WHEREAS, the revenues derived from the solid waste charges will not exceed the funds required to provide the services and shall be used exclusively for the operation and maintenance of the solid waste system; and WHEREAS, the solid waste services are equitable to all customer classes; and WHEREAS, the amount of the solid waste charges will not exceed the proportional cost of the service attributable to each parcel upon which they are proposed for imposition; and
WHEREAS, article XIII D, section 6 of the California Constitution (“Article XIII D”) requires that prior to imposing any increase to the solid waste charges, the Town shall provide written notice (the “Notice”) by mail of the new or increased solid waste charges to the record owner of each parcel upon which the solid waste charges are proposed for imposition and any tenant directly liable for payment of the solid waste charges, the amount of the solid waste charges proposed to be imposed on each parcel, the basis upon which the solid waste charges were calculated, the reason for the solid waste charges, and the date, time, and location of a public hearing (the “Hearing”) on the proposed solid waste charges; and -332-
ATTACHMENT 1
61236.02000\40798450.1
WHEREAS, pursuant to Article XIII D such Notice is required to be provided to the affected property owners and any tenant directly liable for the payment of the solid waste charges not less than forty-five days prior to the Hearing on the proposed solid waste charges; and
WHEREAS, on September 15, 2022, the Town mailed such Notice to the affected property owners and tenants in compliance with Article XIII D; and WHEREAS, on November 14, 2022, the City Council conducted a public hearing in accordance with Proposition 218 and determined that a majority protest did not exist, and that the proposed solid waste rates could be implemented; and
WHEREAS, the City Council wishes to adopt the maximum rates for the solid waste charges effective January 1, 2023;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby finds that the matters set forth in the Recitals to this Resolution are true and correct statements and are made legislative findings and determinations of the City Council, and by this reference made an operative part of this Resolution.

BE IT FURTHER RESOLVED that the City Council of the Town of Hillsborough hereby adopts the maximum solid waste rates set forth in the tables below. The rates shall be imposed at or below the rates set forth below, on the effective dates in the tables set forth below.

Proposed Residential Monthly Solid Waste Rates
eff. 1/1/2023 eff. 1/1/2024 eff. 1/1/2025 eff. 1/1/2026 eff. 1/1/2027 Flat fee per Parcel¹ $28.88 $30.32 $31.68 $33.11 $34.60 Service Level²
20-Gallon Cart $29.25 $30.57 $31.95 $33.23 $34.56
32-Gallon Cart $35.72 $37.33 $39.01 $40.57 $42.19
64-Gallon Cart $55.50 $58.00 $60.61 $63.03 $65.55
96-Gallon Cart $80.98 $84.62 $88.43 $91.97 $95.65
Extra Organics Cart $24.77 $25.88 $27.04 $28.12 $29.24
¹Billed annually
²Billed quarterly by Recology based on solid waste cart size. Rates include weekly service of solid waste container, recycling container, and organics container. -333-
61236.02000\40798450.1
32 64 96 1 2 3 6
1 /week $53.10 $66.88 $79.98 $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 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 $1,199.24 $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
Frequency
Proposed Monthly Commercial Solid Waste Rates (eff. 1/1/2024 ) Cart Size (Gallons) Bin Size (Cubic Yards)
Proposed Monthly Commercial Solid Waste Rates (eff. 1/1/2023 ) Cart Size (Gallons) Bin Size (Cubic Yards)
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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 $5,534.27 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 $741.55 $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 $5,503.11 6 /week $158.40 $248.76 $334.62 $732.55 $1,500.92 $2,523.13 $6,606.19 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 $900.10 $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 $5,755.64 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 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 $3,599.68 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 $802.06 $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
Frequency
Proposed Monthly Commercial Solid Waste Rates (eff. 1/1/2027 ) Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
Proposed Monthly Commercial Solid Waste Rates (eff. 1/1/2026 ) Cart Size (Gallons) Bin Size (Cubic Yards)
Proposed Monthly Commercial Solid Waste Rates (eff. 1/1/2025 ) Cart Size (Gallons) Bin Size (Cubic Yards)
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61236.02000\40798450.1
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 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
Frequency
Proposed Monthly Commercial Organics Rates (eff. 1/1/2024) Cart Size (Gallons) Bin Size (Cubic Yards)
Proposed Monthly Commercial Organics Rates (eff. 1/1/2023) Cart Size (Gallons) Bin Size (Cubic Yards)
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61236.02000\40798450.1
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 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 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
Frequency
Proposed Monthly Commercial Organics Rates (eff. 1/1/2027) Cart Size (Gallons) Bin Size (Cubic Yards)
Frequency
Proposed Monthly Commercial Organics Rates (eff. 1/1/2026) Cart Size (Gallons) Bin Size (Cubic Yards)
Proposed Monthly Commercial Organics Rates (eff. 1/1/2025) Cart Size (Gallons) Bin Size (Cubic Yards)
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61236.02000\40798450.1
BE IT FURTHER RESOLVED that if any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be unconstitutional or otherwise invalid by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the Town of Hillsborough hereby declares that it would have adopted the remainder of this ordinance, including each section, subsection, sentence, clause, phrase, or portion irrespective of the invalidity of any other article, section, subsection, sentence, clause, phrase, or portion.

BE IT FURTHER RESOLVED that, in accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the City Council has determined that the increases in the solid waste rates are exempt from CEQA pursuant to Section 15378 and Section 15273 of the CEQA Guidelines and Public Resources Code section 21080(b)(8) because: (i) the increased charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services; and (ii) the charges constitute the creation of a funding mechanism/other governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The documents and materials that constitute the record of proceedings on which these findings have been based are located in the Office of the City Clerk located at 1600 Floribunda Ave., Hillsborough, CA 94010. The custodian for these records is the City Clerk.

BE IT FURTHER RESOLVED that this Resolution shall take effect immediately, and that all resolutions, ordinances, or administrative actions by the City Council, or parts thereof that are inconsistent or in conflict with any provision of this Ordinance are hereby superseded only to the extent of such inconsistency or conflict.

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 14h day of November 2022, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
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September 16, 2022 – FINAL REPORT

THE TOWN OF HILLSBOROUGH

SOLID WASTE RATE STUDY
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ATTACHMENT 2
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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
September 16, 2022
Ms. Jan Cooke
Finance Manager
Town of Hillsborough
1600 Floribunda Avenue
Hillsborough, CA 94010
Subject: Solid Waste Rate Study – Final 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 Final Report Solid Waste Rate Study
HF&H Consultants, LLC i September 16, 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 ................................................................................................ 10 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 ...................................................................... 22 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 Final Report Solid Waste Rate Study
HF&H Consultants, LLC ii September 16, 2022

TABLE OF FIGURES
Figure ES-1. Current Rate Revenue Compared with the Cost of Service (2023)........................ 3 Figure ES-2. Current and Proposed Monthly Residential Rates ................................................. 3 Figure ES-3. Monthly Commercial Solid Waste Rates (Current) ................................................ 4 Figure ES-4. Proposed Monthly Commercial Solid Waste Rates (effective 1/1/2023) ................ 4 Figure ES-6. Monthly Commercial Organics Rates (Current) ..................................................... 5 Figure ES-7. Proposed Monthly Commercial Organics Rates (effective 1/1/2023)..................... 5 Figure 1-1. – Current Monthly Residential Rates........................................................................ 6 Figure 2-1. Balancing Account Summary (2017 - 2022)............................................................ 9 Figure 2-2. Projected Expenses (2022-2027) and Revenue at Current Rates (No Rate Increases).................................................................................................................................10 Figure 2-3. Summary of Recology’s 2023 Projected Compensation.........................................11 Figure 2-4. Recology’s 2023 Projected Compensation – Residential Services.........................12 Figure 2-5. Recology’s 2022 Approved Compensation – Commercial Services .......................13 Figure 2-6. Recology’s 2022 Approved Compensation – Agency Facilities ..............................14 Figure 2-7. Summary of Tipping Fees (2023-2027)..................................................................15 Figure 2-8. Projected Expenses (2023-2027) and Revenue at Proposed Revenue Increases..16 Figure 3-1. 2023 Net Revenue Requirement by Customer Class ..............................................18 Figure 3-2. Current Rate Revenue Compared to Cost of Service..............................................18 Figure 4-1. Solid Waste Full Time Equivalent Route Factor ......................................................19 Figure 4-2. Solid Waste Equivalent Container Factor................................................................20 Figure 4-3. Solid Waste Equivalent Container Units..................................................................20 Figure 4-4. Solid Waste Variable Route Collection Costs per Month - Residential ....................21 Figure 4-5. Solid Waste Variable Route Collection Costs – Commercial ...................................21 Figure 4-6. Fixed Cart and Bin Collection Costs – Solid Waste.................................................22 Figure 4-7. Cart and Bin Tipping Fees – Solid Waste................................................................22 Figure 4-8. Residential Solid Waste Cost of Service (Service 1x per Week, First Container) ....23 Figure 4.9: Commercial Solid Waste Cost of Service (Service 1x per Week, First Container) ...23 Figure 4-10. Example of Monthly Rate Calculation for 1 Cubic Yard Bin Collected 2x per Week .................................................................................................................................................24 Figure 4-11. Calculation of Monthly Rate for an Additional Solid Waste 96 Gallon Cart ............24 Figure 4-12. Residential Cost-of-Service (2023) and Monthly Rates ........................................25 Figure 4-13. Commercial Solid Waste and Recycling Cost-of-Service (2023) and Monthly Rates .................................................................................................................................................26 Figure 4-14. Commercial Organics Cost-of-Service (2023) and Monthly Rates........................26

GLOSSARY
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. -344-
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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.

RNG Renewable Natural Gas
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.

SBWMA South Bay Waste Management Authority. The Town is a member of the SBWMA Joint Powers Agreement.

SEC Shoreway Environmental Center. The Shoreway facility, owned by the SBWMA, serves as a regional solid waste and recycling facility for the receipt, handling and transfer of refuse, recyclable, and organic materials.

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 Final Report Solid Waste Rate Study
HF&H Consultants, LLC iv September 16, 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 Final Report Solid Waste Rate Study
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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
Final Report Solid Waste Rate Study
HF&H Consultants, LLC 1 September 16, 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 agreement runs 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 for services to 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 -349-
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Final Report Solid Waste Rate Study
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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 fees in 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 indicates that 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
Final Report Solid Waste Rate Study
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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 increases reflect 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 $3,698,698 $3,524,039 ($174,659) 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
Final Report Solid Waste Rate Study
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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
Final Report Solid Waste Rate Study
HF&H Consultants, LLC 5 September 16, 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 fiveyear 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
Final Report Solid Waste Rate Study
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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 is to 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
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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
Final Report Solid Waste Rate Study
HF&H Consultants, LLC 8 September 16, 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. -356-
Town of Hillsborough Section 2. Revenue Requirement Projections Final Report Solid Waste Rate Study
HF&H Consultants, LLC 9 September 16, 2022
SECTION 2. REVENUE REQUIREMENT PROJECTIONS
To determine whether additional rate revenue is required, 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 increases that 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. 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 Final Report Solid Waste Rate Study
HF&H Consultants, LLC 10 September 16, 2022
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 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 Final Report Solid Waste Rate Study
HF&H Consultants, LLC 11 September 16, 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 Final Report Solid Waste Rate Study
HF&H Consultants, LLC 12 September 16, 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 -360-
Town of Hillsborough Section 2. Revenue Requirement Projections Final Report Solid Waste Rate Study
HF&H Consultants, LLC 13 September 16, 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 -361-
Town of Hillsborough Section 2. Revenue Requirement Projections Final Report Solid Waste Rate Study
HF&H Consultants, LLC 14 September 16, 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 -362-
Town of Hillsborough Section 2. Revenue Requirement Projections Final Report Solid Waste Rate Study
HF&H Consultants, LLC 15 September 16, 2022
Figure 2-7. Summary of Tipping Fees (2023-2027)
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 -363-
Town of Hillsborough Section 2. Revenue Requirement Projections Final Report Solid Waste Rate Study
HF&H Consultants, LLC 16 September 16, 2022
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 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 2-8). Figure 2-8 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 2-8). 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 increases in the future. The proposed annual revenue increases are shown on Row 6 of Figure 2-8. 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 results from the 10% increase in the Town’s tax roll charge, adopted by Council in 2021, which went into effect July 1, 2022. The 5.9% in additional Base Charge 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 2-8. 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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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 charges further proportioned among the customer classes. The customer classes for this study 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 $38,407 GROSS Revenue Requirement (from Figure 2-8, Row 12) $3,801,400 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) ($731) ($27,701) Net Revenue needed from Rates $3,599,699 $98,999 $3,698,698 1 Cost of providing backyard service is included in Recology's direct costs. Residents with backyard collection service are billed directly and not included in the base rates. This revenue is removed to avoid double counting. 2 Allocated to each customer class based on their respective percentage share of Gross Revenue Requirement 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 $3,698,698 $3,524,039 ($174,659) 5%
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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 vehicles in 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.

Customer Sub-Class
FTE Route
Factor
Residential
20 Gallon 1.00
32 Gallon 1.33
64 Gallon 1.82
96 Gallon 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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2. An adjusted loads cost was determined based on the actual collection costs divided by actual loads multiplied by the adjusted Loads.

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 B A 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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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 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
1 2 3 6
Annual Variable Costs $ 56,956 A
Equivalent Container Units (ECU) 87 B
Annual Variable Costs per ECU $ 656.48 A / B = C
Monthly Variable Cost per ECU $ 54.71 C / 12 = D
Equivalent Container Factor E 1.00 2.47 4.65 14.03
Variable Route Collection Costs per Month D x E $ 54.71 $ 135.24 $ 254.51 $ 767.30 * Totals may vary slightly due to rounding
Bin Size (Cubic Yards)
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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 4-6 shows the calculation of Fixed Costs for solid waste carts and bins.

Figure 4-6. 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 4-7 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 4-7. Cart and Bin Tipping Fees – Solid Waste
Figures 4-8 and 4-9 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 4-8 and 4-9 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 4-8 to 4-9 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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Figure 4-8. Residential Solid Waste Cost of Service (Service 1x per Week, First Container) Figure 4.9: 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 4-10 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 $ 54.71 $ 135.24 $ 254.51 $ 767.29
Fixed $ 40.69 $ 40.69 $ 40.69 $ 40.69
Transfer/Disposal $ 36.57 $ 73.14 $ 109.70 $ 219.41
Cost per Month $ 131.96 $ 249.06 $ 404.90 $1,027.39
Commercial Bins
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Figure 4-10. 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 is the cost of the container (i.e., depreciation) itself. Figure 4-11 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 4-8).

Figure 4-11. 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
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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 4-12 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 4-12 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 4-12. 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 4-13 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 -373-
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Figure 4-13. Commercial Solid Waste and Recycling Cost-of-Service (2023) and Monthly Rates Figure 4-14 summarizes the monthly costs for Recology to provide organics collection services, which is billed quarterly by Recology and based on each commercial customer’s specific number of containers, the size of container, and frequency of collection.

Figure 4-14. 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)

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Town of Hillsborough
Cost of Service Cart Rates - 2023

SOLID WASTE
Solid Waste Cost of Service Information ‐ 2023
Object Description New Services Solid Waste Other Profit Total Variable Costs
Salaries and Benefits

10.1 Salaries and Wages 229,22 $                  6 $                     24,062 $                           253,288

10.2 Employee Benefits 134,787 $                  $                     14,149 $                           148,936 Services and Supplies

20.0 Services and Supplies 53,301 $                    $                       5,595 $                              58,896

20.1 Vehicle Maintenance 40,687 $                    $                       4,271 $                              44,958

20.3 Fuel & Lubricants 36,218 $                    $                       3,802 $                              40,020 Other Charges
SBWMA Tip Fees 353,46 $                  0 $                     73,149 $                           426,609 Recyclable Material Collection Costs
Fixed Costs
Services and Supplies

20.2 Container Maintenance 10,679 $                    $                       1,121 $                              11,800

20.4 Depreciation ‐ Collection Vehicles 34,462 $                    $                       3,618 $                              38,080

20.41 Depreciation ‐ Containers $                   10,563 $                       1,109 $                              11,672

20.50 General and Administrative 73,301 $                    $                       7,695 $                              80,996

20.8 Interest ‐ Collection Vehicles 8,252 $                      ‐ $                             $                                8,252

20.8 Interest ‐ Containers 2,621 $                      ‐ $                             $                                2,621 Other Services/Adjustments
$                                    ‐
On‐Call Collection $                     72,349 $                              72,349 Services to Town Facilities $                     11,356 $                              11,356 Lift Adjustments $                      (3,261) $                               (3,261) Intrafund Reimbursements
Transfer to/(from) Balancing Account $               (9,764) $                               (9,764) Total Solid Waste Operational Requirements $                   ‐ $                 987,557 $                   143,828 $                     65,421 $                        1,196,807 Franchise Fees $            ‐ $             98,756 $               14,383 $                 6,542 $                           119,681 Attachment Q Revenue (not kept by Recology) $                            (36,594) Additional Tax Roll Revenue $                                    ‐ Total Solid Waste Operational Requirements $                        1,279,893 $                   ‐ $              1,025,721 $                   157,483 $                     67,045 1st Cart $                           415,367
2nd Cart $                              11,243
Transfer/Processing/Disposal Costs $                           426,609 Fixed Costs $                           187,187
Solid Waste Collection Operational Costs $                           665,779 Cost of 2nd Container $                                   318 Total Solid Waste Operational Requirements $                        1,279,893 Fig Check s/b 0 $                                    ‐
Solid Waste Tip Fees per Gallon/Month 0.201 $
Solid Waste Lbs/Gallon 0.56
20 Gal Refuse Pounds per Setout 11.19
32 Gal Refuse Pounds per Setout 17.91
64 Gal Refuse Pounds per Setout 35.82
96 Gal Refuse Pounds per Setout 53.73
Side Loaders 1.00
Rear Loaders
S/L Capacity 25
R/L Capacity
Collection Body Refuse Yards 26.00
Collection Body Refuse Tons
26 7.80
$                                4.68

3.00 $                              14.05
HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Resi Yr 1 (H1) -377-
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75 I J K L MN O P QRST U V
Town of Hillsborough
Cost of Service Cart Rates - 2023

SOLID WASTE
Operational Information
Container Size (Gal) 20 32 64 96 TOTAL Container Size (Gal) 20 32 64 96 TOTAL Disposal lbs per Container Setouts/Max Load 1,394                             871                435                290 Cart 1 11.19                              17.91                   35.82             53.73 Total Containers(1st Container)              3,722 Cart 2 11.19                              17.91                   35.82             53.73 Loads if All Subs(per Week)               2.67               4.27               8.55             12.82 "FTE Route Factor" 1.00                              1.33               1.82               2.32 Subscribed Gal Adjusted Loads if All Subs               2.67               5.68             15.59             29.73 Cart 1 10,980                          54,848                 66,560           40,224        172,612 Cart 2                   ‐                   256                   2,304             2,112            4,672 Cost per Load per Week (F&V) 3,271 $ Calc'd Disposal Rate/gal 2.41 $            Cost all Loads 8,737 $           $        18,587 $        51,000 $        97,238 Minimum $           8,737
Cart 1 Disposal 26,422 $           $        131,984 $           160,167 $        96,793 $    415,367 Cart 2 Disposal $                ‐ $               616 $                5,544 $          5,082 $       11,243 Equivalent Container Factor               1.00               2.13               5.84             11.13 Containers by Size (Frequency) 549                             1,722             1,076                441 Equivalent Container Units (ECU)                549             3,664             6,281             4,908            15,402 Solid Waste accounts ‐ 1st cart 549 1,714 1,040 419 3,722             Annual Variable Route Costs $      665,779 Solid Waste accounts ‐ 2nd+ cart 0 8 36 22 66                   ECUs            15,402 Total Carts 549                                 1,722                   1,076                441            3,788 Annual Variable/ECU $           43.23 Monthly Variable/ECU $             3.60
Solid Waste Lifts ‐ 1st cart 549 1,714 1,040 419 3,722
Solid Waste Lifts ‐ 2nd cart 0 8 36 22 66                   1st Container Total Lifts 549                                 1,722                   1,076                441            3,788 Variable Route Costs/Month 3.60 $             $            7.66 $          21.03 $          40.09 Fixed Costs/Container/Month 4.19 $             $            4.19 $            4.19 $            4.19 Avg per Route Day Refuse Txfr & Disp Cost/Month 4.01 $             $            6.42 $          12.83 $          19.25 Solid Waste Lifts / Route 392                                  1,230                      769                 315            2,706 Trucks per Route 1                                              1                           1                     1 TOTAL MONTHLY RATE @ 1x/wk $          11.80 $          18.27 $          38.05 $          63.53 Solid Waste Lifts / Truck                   392               1,230                      769                 315            2,706 2nd Container Refuse Txfr & Disp Cost/Month 4.01 $             $            6.42 $          12.83 $          19.25 Estimation of Equivalent Routes Cost of Container $            0.30 $            0.31 $            0.39 $            0.44 Container Size (Gal) 20 32 64 96 TOTAL Variable Route Costs/Month 3.60 $             $            7.66 $          21.03 $          40.09 Containers (1st and 2nd) 549 1,722 1,076 441 3,788
% of All Subscribers 14% 45% 28% 12% 100% TOTAL MONTHLY RATE @1x/wk $            7.92 $          14.39 $          34.26 $          59.79 Ideal 1‐Load Route? 202                                      396                      124                   34               755 Setouts in Max Load 1,394                                  871                      435                 290 Req'd Rte Days 2.72                                  4.35                     8.70             13.05 Calculated Loads 5.0
Lifts/Hr.            444
Route Time Cost of Container
Container Size (Gal) 20 32 64 96 Standard Container Size (Gal) 20 32 64 96 Hours to Pack‐out 3.14                                  1.96                     0.98                0.65 Cost of Container $          36.35 $          37.57 $          47.38 $          53.32 includes profit and ffs Avg Route Time 6.10                                  6.10                     6.10                6.10              6.10 Monthly Cost over 10 years 0.30                              0.31               0.39               0.44 Loads 2.00                                  4.00                     7.00             10.00              2.00 Hours/Dump Trip                 1.50                 1.50                     1.50                1.50              1.50 Residential Solid Waste 20 32 64 96 Total Check Dump Time 3.00                                  6.00                   10.50             15.00              3.00 Variable 1,978 $           $        13,197 $        22,626 $        17,681 $       ‐ 665,779 $ Total Route Time 9.10                                12.10                   16.60             21.10              9.10 Fixed 2,301 $           $          7,183 $          4,359 $          1,756 $       ‐ 187,187 $ FTE Route Factor                 1.00                 1.33                     1.82                2.32              1.00 Disposal 1st Cart $          2,202 $        10,999 $        13,347 $          8,066 $       ‐ 415,367 $ Disposal 2nd Cart $              ‐ $               51 $             462 $             424 $          ‐ 11,243 $ Cost of Container 2nd Cart $              ‐ $                  3 $               14 $               10 $               ‐ 318 $ Subtotal 6,48 $           0 $       31,433 $       40,808 $       27,936 $   1,279,893 $              ‐ Solid Waste Cart Rates by Cost of Service
HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Resi Yr 1 (H1) -378-
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75 W X Y Z AA AB AC AD
Town of Hillsborough
Cost of Service Cart Rates - 2023

ORGANICS
Organics Cost of Service Information 2023
Object Description New Services Organics Profit Total
Variable
Salaries and Benefits

10.1 Salaries and Wages 127,279 $                $                  20,709 $                    147,988

10.2 Employee Benefits 97,63 $                   4 $                  12,348 $                    109,982 Services and Supplies

20.0 Services and Supplies 61,068 $                   $                    6,410 $                      67,478

20.1 Vehicle Maintenance 51,28 $                   4 $                    5,383 $                      56,667

20.3 Fuel & Lubricants 38,256 $                   $                    4,016 $                      42,272 Other Charges
SBWMA Tip Fees 775,025 $                $                    775,025 Fixed Costs
Services and Supplies

20.2 Container Maintenance 12,439 $                   $                    1,306 $                      13,745

20.4 Depreciation ‐ Collection Vehicles 39,565 $                   $                    4,153 $                      43,718

20.41 Depreciation ‐ Containers $                  15,008 $                    1,575 $                      16,583

20.5 General and Administrative 165,70 $                4 $                    7,947 $                    173,651

20.8 Interest ‐ Collection Vehicles 9,423 $                     ‐ $                         $                        9,423

20.8 Interest ‐ Containers 3,722 $                     ‐ $                         $                        3,722 Intrafund Charges
Transfer from Balancing Account $                (11,817) $                    (11,817) Intrafund Reimbursements
$                            ‐
Total Operational Requirements $                         ‐ $            1,384,590 $                 63,848 $                1,448,438 Franchise Fees $                   ‐ $         138,459 $             6,385 $                    144,844 Total Operational Requirements $                1,593,282 1st Cart $                    631,904
2nd Cart $                    143,121
Transfer/Processing/Disposal Costs $                    775,025 Fixed Costs $                    256,347
Organics Collection Operational Costs $                    557,414 Cost of 2nd Container $                        4,495
Total Organics Operational Requirements $                1,593,282 Fig Check s/b 0 $                            ‐
Organics Tip Fees per Gallon/Month 0.15 $
Organics Lbs/Gallon 0.47
20 Gal Organics Pounds per Setout 9
32 Gal Organics Pounds per Setout 15
64 Gal Organics Pounds per Setout 30
96 Gal Organics Pounds per Setout 45
Side Loaders 1
Rear Loaders
S/L Capacity 25.91
R/L Capacity
Collection Body Organics Yards 25.91
Collection Body Organics Tons 8.42
Cost/min for additional freq. of service $                          4.68 Additional Service Frequency Time (Minutes) 3.0
Additional Service Frequency Cost $                        14.05 HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Resi Yr 1 (H1) -379-
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75 AE AF AG AH AI AJ A AL AM AN AO AP AQ AR
Town of Hillsborough
Cost of Service Cart Rates - 2023

ORGANICS
Operational Information
Container Size (Gal) 96 96 96 96 TOTAL Container Size (Gal) 96 96 96 96 TOTAL Processing lbs per Container Setouts/Max Load 374                                            374                      374                      374 Cart 1                      ‐ ‐                      ‐                      ‐                      Total Containers(1st Container)                      549                   1,714                   1,040                      419                   3,173 Cart 2                      ‐ ‐                      ‐                      ‐                      Loads if All Subs(per Week)                     8.48                     8.48                     8.48                     8.48 "FTE Route Factor" 1.82                                          1.82                     1.82                     1.82 Subscribed Gal per Wk Adjusted Loads if All Subs                   15.45                   15.45                   15.45                   15.45 Cart 1 52,70               4            164,544              99,840              40,224            357,312 Cart 2                      ‐ ‐                      ‐                                   80,928              80,928 Cost per Load $                1,686 Cost all Loads 26,045 $               $              26,045 $              26,045 $              26,045 Cart 1 Tons 643                             2,007             1,218                491                4,358 Minimum $              26,045 Cart 2 Tons                  ‐ ‐                  ‐                                 987                    987 Calc'd Disposal Rate/ton 145.0 $            0 Equivalent Container Factor                     1.00                     1.00                     1.00                     1.00 Containers by Size (Frequency) 549                                         1,714                   1,040                   1,262 Cart 2 Disposal $                  ‐ ‐ $                  $         143,121 $         143,121 Equivalent Container Units (ECU)                      549                   1,714                   1,040                   1,262                   4,565 Organics Lifts ‐ 1st Cart 549 1,714 1,040 419 3,722                 Annual Variable Route Costs $           557,414 Organics Lifts ‐ 2nd Cart 0 0 0 843 843                     ECUs                   4,565 TOTAL Organics Lifts 549                                    1,714                1,040                1,262                4,565 Annual Variable/ECU $              122.11 Monthly Variable/ECU $                10.18
Avg per Route Day
Organics Lifts / Route 392                                    1,224                    743                    901                3,261 1st Container Trucks per Route 1                                                1                        1                        1 Variable Route Costs/Month 10.18 $                 $                10.18 $                10.18 $                10.18 Organics Lifts / Truck 392                                    1,224                    743                    901                3,261 Fixed Costs/Container/Month 5.74 $                   $                  5.74 $                  5.74 $                  5.74 Organics Txfr & Disp Cost/Month 14.15 $                 $                14.15 $                14.15 $                14.15 Estimation of Equivalent Routes TOTAL MONTHLY RATE @ 1x/wk $                30.06 $                30.06 $                30.06 $                30.06 Container Size (Gal) 96 96 96 96 TOTAL
Containers 549 1,714 1,040 1,262 4,565                 2+ Containers % of All Subscribers 44% 38% 23% 28% 131% Disposal 14.15 $                 $                14.15 $                14.15 $                14.15 Cost of Container $                  0.44 $                  0.44 $                  0.44 $                  0.44 Ideal 1‐Load Route? 162.6897454                    140                      85                    103                    492 Addl Operating Costs 10.18 $                 $                10.18 $                10.18 $                10.18 Setouts in Max Load 374                                        374                    374                    374 TOTAL MONTHLY RATE @ 1x/wk $                24.77 $                24.77 $                24.77 $                24.77 Req'd Rte Days 12                                            12                      12                      12 Cost of Container
Calculated Loads 9.3 Container Size (Gal) 96 96 96 96
Cost of Container $                53.32 $                53.32 $                53.32 $                53.32 Lifts/Hr.                535 Yearly Cost over 10 years                     0.44                     0.44                     0.44                     0.44 Route Time Residential Organics 96 96 96 96 Total Check Container Size (Gal) 96 96 96 96 Standard Variable 5,586 $                 $              17,441 $              10,583 $              12,841 $            ‐ 557,414 $ Hours to Pack‐out 0.70                                      0.70                   0.70                   0.70 Fixed 3,151 $                 $                9,837 $                5,969 $                2,405 $            ‐ 256,347 $ Avg Route Time 6.10                                      6.10                   6.10                   6.10                   6.10 Disposal 1st Cart $                7,767 $              24,250 $              14,714 $                5,928 $            ‐ 631,904 $ Loads 9.00                                      9.00                   9.00                   9.00                   2.00 Disposal 2nd Cart $                     ‐ ‐ $                     ‐ $                     $              11,927 $            ‐ 143,121 $ Hours/Dump Trip                   1.50                   1.50                   1.50                   1.50                   1.50 Cost of Container 2nd Cart $                     ‐ ‐ $                     ‐ $                     $                   375 $                 ‐ 4,495 $ Dump Time 13.50                                13.50                13.50                13.50                   3.00 Subtotal 16,505 $              $             51,528 $             31,265 $             33,476 $        1,593,282 $                    ‐ Total Route Time 19.60                                19.60                19.60                19.60                10.76 FTE Route Factor                   1.82                   1.82                   1.82                   1.82                   1.00 Calculation based on Billed Accounts
Accounts Annual Variable Route Costs $           557,414 96 96 96 Total Less Variable Attributed to 3+ Carts $           102,935 1st Containers                    549                1,714                1,040                    419                3,173 Adjusted Variable Route Costs $           454,479 2+ Containers                      ‐ ‐                      ‐                                         843                    843 Annualized Billed Accounts                 38,076 Refuse Accounts                    549                1,714                1,040                    419                3,173 Monthly Variable/Billed Account $               11.94 ECU 549                                    1,714                1,040                1,262                4,016 Difference between 1st & Refuse                  (843) Annual Disposal/Processing Costs $           775,025 Less Disposal/Processing Attributed to 3+ Carts $           143,121 $           631,904
Reconciliation of Billed Revenue to Costs Annualized Billed Accounts                 38,076 Monthly Disposal/Billed Account $               16.60
Refuse Accounts                3,173
Monthly Rate $             35.26 Annual Fixed Costs $           256,347 Annual Revenue $      1,342,730 Annualized Billed Accounts                 38,076 Monthly Fixed Costs/Billed Account $                  6.73 2+ Cart Accounts                    843
Monthly Rate $             24.77 Monthly Variable $                11.94 Annual Revenue $         250,551 Monthly Fixed $                  6.73 Monthly Disposal/Processing $                16.60
Total Annual Revenue $      1,593,282 $                35.26 Total Organics Rev Requirement 1,593,282 $
Fig Check s/b 0 $                 ‐
Organics Cart Rates by Cost of Service
HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Resi Yr 1 (H1) -380-
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75 AS AT AU AV AW AX AY AZ
Town of Hillsborough
Cost of Service Cart Rates - 2023

RECYCLING
Recycling Cost of Service Information 2023
Object Description New Services Recycling Profit Total
Variable Costs

10.1 Salaries and Wages 201,523 $             $              21,154 $             222,677

10.2 Employee Benefits 122,328 $             $              12,841 $             135,169

20.0 Services and Supplies 56,542 $               $                5,935 $               62,477

20.1 Vehicle Maintenance 43,597 $               $                4,576 $               48,173

20.3 Fuel & Lubricants 38,162 $               $                4,006 $               42,168 Fixed Costs

20.2 Container Maintenance 11,022 $               $                1,157 $               12,179

20.4 Depreciation ‐ Collection Vehicles 33,469 $               $                3,513 $               36,982

20.41 Depreciation ‐ Containers $              10,810 $                1,135 $               11,945

20.5 General and Administrative 75,50 $               4 $                7,926 $               83,430

20.8 Interest ‐ Collection Vehicles 7,982 $                 ‐ $                      $                  7,982

20.8 Interest ‐ Containers 2,682 $                 ‐ $                      $                  2,682 Intrafund Charges
$                      ‐ ‐ $                      ‐ $
Intrafund Reimbursements
Transfer from Balancing Account $               (5,389) $                (5,389) Total Recycling Operational Requirements $                         ‐ $            598,232 $              62,244 $             660,477 Franchise Fees $                   ‐ $        59,823 $          6,224 $               66,048 Total Operational Requirements $             726,524
1st Cart $                      ‐
2nd Cart $                      ‐
Transfer/Processing/Disposal Costs $                      ‐ Fixed Costs $             155,200
Recycling Collection Operational Costs $             571,324 Cost of 2nd Container $                      ‐
Total Recycling Operational Requirements 726,52 $              4 Fig Check s/b 0 $                      ‐
Recycling Tip Fees per Gallon/Month $                      ‐ Recycling Lbs/Gallon 0.30
20 Gal Recycling Pounds per Setout 6.08
32 Gal Recycling Pounds per Setout 9.73
64 Gal Recycling Pounds per Setout 19.47
96 Gal Recycling Pounds per Setout 29.20
Side Loaders 1
Rear Loaders
S/L Capacity 25.91
R/L Capacity
Collection Body Organics Yards 25.91
Collection Body Organics Tons 8.42
Cost/min for additional freq. of service $                    4.68 Additional Service Frequency Time (Minutes) 3.0
Additional Service Frequency Cost $                  14.05 HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Resi Yr 1 (H1) -381-
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75 BA BB BC BD BE BF BG BH BI BJ BK BL BM BN
Town of Hillsborough
Cost of Service Cart Rates - 2023

RECYCLING
Operational Information
Container Size (Gal) 64 64 64 64 TOTAL Container Size (Gal) 64 64 64 64 TOTAL Processing lbs per Container Setouts/Max Load 577                                          577                     577                     577 Cart 1 9.73                            19.47               29.20 Total Containers(1st Container)                     549                 1,714                 1,040                     419                     3,722 Cart 2 9.73                            19.47               29.20 Loads if All Subs(per Week)                    6.45                    6.45                    6.45                    6.45 "FTE Route Factor" 1.30                                        1.30                    1.30                    1.30 Subscribed Gal Adjusted Loads if All Subs                    8.41                    8.41                    8.41                    8.41 Cart 1 109,69       6            66,560             26,816          203,072 Cart 2                ‐ ‐                    ‐                    ‐                    Cost per Load $                  5,682 Cost all Loads 47,808 $             $            47,808 $            47,808 $            47,808 Cart 1 Tons 17,352                    10,529               4,242             32,122 Minimum $                47,808 Cart 2 Tons                ‐ ‐                    ‐                    ‐ Calc'd Rate/ton $                ‐ Equivalent Container Factor                    1.00                    1.00                    1.00                    1.00 Containers by Size (Frequency) 549                                      1,714                 1,040                     419 Cart 2 Disposal $            ‐ ‐ $                 ‐ $                 ‐ $                 Equivalent Container Units (ECU)                     549                 1,714                 1,040                     419                     3,722 Recycling Lifts ‐ 1st cart 549 1,714 1,040 419 3,722                Annual Variable Route Costs $              571,324 Recycling Lifts ‐ 2nd cart 0 0 0 0                   ‐ ECUs                     3,722 TOTAL Recycling Lifts 549                            1,714              1,040                  419               3,722 Annual Variable/ECU $                153.50 Monthly Variable/ECU $                  12.79
Avg per Route Day
Recycling Lifts / Route 392                            1,224                  743                  299               2,659 1st Container Trucks per Route 1.4                                     1                       1 Variable Route Costs/Month 12.79 $               $              12.79 $              12.79 $              12.79 Recycling Lifts / Truck 874                                743                  299               1,917 Fixed Costs/Container/Month 3.47 $                 $                3.47 $                3.47 $                3.47 Recycling Txfr & Disp Cost/Month $                   ‐ ‐ $                   ‐ $                   ‐ $ Estimation of Equivalent Routes TOTAL MONTHLY RATE @ 1x/wk $              16.27 $              16.27 $              16.27 $              16.27 Container Size (Gal) 64 64 64 64 TOTAL
Containers 549 1,714 1,040 419 3,722                2nd Container % of All Subscribers 131% 46% 28% 11% 85% Disposal $                   ‐ ‐ $                   ‐ $                   ‐ $ Cost of Container $                0.39 $                0.39 $                0.39 $                0.39 Ideal 1‐Load Route? 755.642977              266                  161                    65               1,247 Addl Operating Costs 12.79 $               $              12.79 $              12.79 $              12.79 Setouts in Max Load 577                                577                  577                  577 TOTAL MONTHLY RATE @ 1x/week $              13.19 $              13.19 $              13.19 $              13.19 Req'd Rte Days 6.45                              6.45                 6.45                 6.45 Cost of Container
Calculated Loads 3.0 Container Size (Gal) 64 64 64 64
Cost of Container $              47.38 $              47.38 $              47.38 $              47.38 Lifts/Hr.                  314 Yearly Cost over 10 years                    0.39                    0.39                    0.39                    0.39 Route Time Residential Recycling 64 64 64 64 Total Check Container Size (Gal) 64 64 64 64 Standard Variable 7,023 $               $            21,925 $            13,303 $              5,360 $               ‐ 571,324 $ Hours to Pack‐out 1.84                              1.84                 1.84                 1.84 Fixed 1,908 $               $              5,956 $              3,614 $              1,456 $               ‐ 155,200 $ Avg Route Time 6.10                              6.10                 6.10                 6.10                 6.10 Disposal 1st Cart $                   ‐ ‐ $                   ‐ $                   ‐ $                   ‐ $                       ‐ $ Loads 4.00                              4.00                 4.00                 4.00                 2.00 Disposal 2nd Cart $                   ‐ ‐ $                   ‐ $                   ‐ $                   ‐ $                       ‐ $ Hours/Dump Trip                 1.50             1.50                 1.50                 1.50                 1.50 Cost of Container 2nd Cart $                   ‐ ‐ $                   ‐ $                   ‐ $                   ‐ $                       ‐ $ Dump Time 6.00                              6.00                 6.00                 6.00                 3.00 Subtotal 27,881 $             $            16,917 $              6,816 $              726,524 $                 ‐ Total Route Time 12.10                         12.10               12.10               12.10                 9.28 FTE Route Factor                 1.30             1.30                 1.30                 1.30                 1.00 Calculation based on Billed Accounts
Accounts
64 64 64 Annual Variable Route Costs $              571,324 1st Container          1,714               1,040                  419               3,173 Less Variable Attributed to 2+ Carts $                      ‐ 2+ Containers                ‐ ‐                    ‐                    ‐                    Adjusted Variable Route Costs $              571,324 Refuse Accounts          1,714               1,040                  419               3,173 Annualized Billed Accounts                   38,076 ECU 1,714                         1,040                  419               3,173 Monthly Variable/Billed Account $                  15.00 Difference between 1st & Refuse                   ‐
Annual Disposal/Processing Costs $                      ‐ Less Disposal/Processing Attributed to 2+ Carts $                      ‐ Reconciliation of Billed Revenue to Costs $                      ‐ Annualized Billed Accounts                   38,076
Refuse Accounts               3,173 Monthly Disposal/Billed Account $                      ‐ Monthly Rate $            19.08
Annual Revenue $       726,524 Annual Fixed Costs $              155,200 Annualized Billed Accounts                   38,076
2+ Cart Accounts                   ‐ Monthly Fixed Costs/Billed Account $                    4.08 Monthly Rate $            13.19
Annual Revenue $                ‐ Monthly Variable $                  15.00 Monthly Fixed $                    4.08
Total Annual Revenue $       726,524 Monthly Disposal/Processing $                      ‐ Total Recycling Rev Requirement 726,524 $        $                  19.08 Fig Check s/b 0 $                ‐
Recycling  Cart Rates by Cost of Service
HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Resi Yr 1 (H1) -382-
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Town of HillsboroughCart Rate Tables
Frequency 20 32 64 96 Frequency 20 32 64 96
1 /week $51.05 $59.40 $80.36 $104.65 1 /week $11.80 $18.27 $38.05 $63.53 $7.92 $14.39 $34.26 $59.79
Frequency 96 96 96 96 Frequency 96 96 96 96
1 /week $0.00 $0.00 $0.00 $0.00 1 /week $30.06 $30.06 $30.06 $30.06 $23.42 $23.42 $23.42 $23.42 $24.77 $24.77 $24.77 $24.77 Frequency 64 64 64 64 Frequency 64 64 64 64
1 /week $0.00 $0.00 $0.00 $0.00 1 /week $16.27 $16.27 $16.27 $16.27 $0.00 $0.00 $0.00 $0.00
Frequency 20 32 64 96 Frequency 20 32 64 96
1 /week $51.05 $59.40 $80.36 $104.65 1 /week $58.13 $64.60 $84.38 $109.86 includes $27.50/month tax roll charge $7.92 $14.39 $34.26 $59.79 includes $27.50/month tax roll charge
Frequency 20 32 64 96
$7.08 $5.20 $4.02 $5.21
14% 9% 5% 5%
Published Rates (excludes $27.50 tax roll charge)
Frequency 20 32 64 96
1 /week $30.63 $37.10 $56.88 $82.36
$7.92 $14.39 $34.26 $59.79
Total COS SW Cart Rates ‐ Residential
Extra SW Container
Total COS SW Cart Rates ‐ Residential
Total 2023 COS Rates v Current Cart Rates
1 /week
Total Approved Cart Rates
Extra SW Container
Solid Waste COS Rates ‐ 2023
Extra Container
Recycling COS Rates ‐ 2023
Extra Container
Recycling Approved Rates ‐ 2022
Extra Container
Current Rates
Organics COS Rates ‐ 2023
Extra Container
Solid Waste Approved Rates ‐ 2022
Organics Approved Rates ‐ 2022
Extra Container
HF &H Consultants, LLC7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
Resi Rate Tables (H3)
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Town of Hillsborough
Cost of Service Commercial Rates - 2023

SOLID WASTE & RECYCLING
Solid Waste and Recycling Cost of Service Information ‐ 2023 Object Description New Services Solid Waste Other Profit Total Variable

10.11 Salaries and Wages 6,169 $                      $                            648 $                               6,817

10.21 Employee Benefits 3,684 $                      $                            387 $                               4,071 20A Services and Supplies 1,364 $                      $                            143 $                               1,507

20.11 Vehicle Maintenance 698 $                          $                              73 $                                   771

20.31 Fuel & Lubricants 1,051 $                      $                            110 $                               1,161 Fixed

20.21 Container Maintenance 253 $                          $                              27 $                                   280

20.42 Depreciation ‐ Collection Vehicles 683 $                          $                              72 $                                   755

20.43 Depreciation ‐ Containers 188 $                          $                              20 $                                   208

20.51 General and Administrative 1,382 $                      $                            145 $                               1,527

20.81 Interest ‐ Collection Vehicles 324 $                          ‐ $                              $                                   324

20.81 Interest ‐ Containers 37 $                            ‐ $                              $                                     37 Other Charges
SBWMA Tip Fees 22,331 $                    $                            118 $                             22,449 $                                    ‐
Other Services
Abandoned Waste Route 13,954 $                       $                             13,954 Services to Town Facilities 18 $                               $                                     18 $                                    ‐
Intrafund Reimbursements
Transfer from Balancing Account (436) $                    $                                 (436) Total Solid Waste Operational Requiremen $                   ‐ $                   38,164 $                      13,654 $                        1,624 $                             53,442 Franchise Fees $            ‐ $              3,816 $                 1,365 $                     162 $                               5,344 Organics $                             27,139
Frequency Surcharge Revenue (3,372) $                 $                              (3,372) Total Solid Waste Operational Requirements $                             82,553 1st container $                             21,132
2nd container $                               1,316
Transfer/Processing/Disposal Costs $                             22,449 Cost of 1st container
Other Fixed Costs
Fixed Costs $                               2,930
Solid Waste Collection Operational Costs $                             56,956 Cost of 2nd Container $                                   219 Total Solid Waste Operational Requirements $                             82,553 Fig Check s/b 0 $                                    ‐
Solid Waste Tip Fees per Gallon/Month 0.18 $
Solid Waste Lbs/Gallon ‐ Carts 0.61
Solid Waste Gallons/ Cubic Yard 202.00
20 Gal Refuse Pounds per Setout 12.13
32 Gal Refuse Pounds per Setout 19.41
64 Gal Refuse Pounds per Setout 38.83
96 Gal Refuse Pounds per Setout 58.24
1 CY Refuse Pounds per Setout 122.55
2 CY Refuse Pounds per Setout 245.09
3 CY Refuse Pounds per Setout 367.64
6 CY Refuse Pounds per Setout 735.27
Side Loaders 1.00
Rear Loaders
S/L Capacity 25
R/L Capacity
Collection Body Refuse Yards 26.00
Collection Body Refuse Tons
26 7.80
Cost/min for additional freq. of service 4.68 $
Additional Service Frequency Time (Minutes) 5.00
Additional Service Frequency Cost ‐ Bins 23.42 $
Cost/min for additional freq. of service 4.68 $
Additional Service Frequency Time (Minutes) 3.00
Additional Service Frequency Cost ‐ Carts 14.05 $
HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Comm Yr 1 (H5) -384-
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Town of Hillsborough
Cost of Service Commercial Rates - 2023

SOLID WASTE & RECYCLING
Operational Information
Container Size (Gal) 20 32 64 96 1 2 3 6 TOTAL
Subscribed Gal
Cart 1                    ‐                       ‐ 32                         ‐                                            202                  2,828                  3,030                  3,636               9,728 Cart 2                     ‐ ‐                     ‐                         ‐                                             ‐ 606                       ‐                       ‐                                        606 Cart 1 Tons                    ‐                         ‐ 1                         ‐                                                3                        45                        48                        57                  153 Cart 2 Tons                     ‐ ‐                     ‐                         ‐                                               ‐ 10                       ‐                       ‐                                          10 Calc'd Disposal Rate/ton $         137.72
Cart 2 Disposal $                  ‐ ‐ $                      ‐ $                    $                ‐ 1,316 $                    ‐ $                    ‐ $                    $           1,316 Solid Waste accounts ‐ 1st container   01                         ‐                         ‐                                                2                          1                          1                          1                       6 Solid Waste accounts ‐ 2nd container 0                     ‐ ‐                         ‐                                                3                          1                           ‐ 1                                             5 Total Accounts                    ‐                         ‐ 1                         ‐                                                5                          2                          2                          1                    11 Solid Waste Lifts ‐ 1st container 0 1 0 0 1 7 5 3 17
Solid Waste Lifts ‐ 2nd container 0 0 0 0 3 0 0 0 3
TOTAL Solid Waste Lifts                    ‐                         ‐ 1                         ‐                                                4                          7                          5                          3                    20 Estimation of Equivalent Routes
Container Size (Gal) 20 32 64 96 1 2 3 6 TOTAL
Containers (1st and 2nd) 0 1 0 0 5 2 2 1 11
% of All Subscribers 0% 9% 0% 0% 45.5% 18.2% 18.2% 9.1% 100% Ideal 1‐Load Route?                    ‐                       ‐ 73                         ‐                                        57.86                  11.57                    7.72                    1.93                  152 Setouts in Max Load 1,286                                   804                       402                267.86                      127                        64                        42                        21 Calculated Loads 0.1
Lifts/Hr.                 49
Route Time
Container Size (Gal) 20 32 64 96 1 2 3 6 Standard
Hours to Pack‐out 26.33                                16.46                      8.23                    5.49                    2.61                    1.30                    0.87                    0.43 Avg Route Time 8.71                                    8.71                      8.71                    8.71                    8.71                    8.71                    8.71                    8.71                 8.71 Loads 1.00                                    1.00                      2.00                    2.00                    4.00                    7.00                  11.00                  21.00                 2.00 Hours/Dump Trip                  1.00                  1.00                      1.00                    1.00                    1.00                    1.00                    1.00                    1.00                 1.00 Dump Time 1.00                                    1.00                      2.00                    2.00                    4.00                    7.00                  11.00                  21.00                 2.00 Total Route Time 9.71                                    9.71                    10.71                  10.71                  12.71                  15.71                  19.71                  29.71                 9.10 FTE Route Factor 1.07                                    1.07                      1.18                    1.18                    1.40                    1.73                    2.17                    3.26                 1.00 Container Size (Gal) 20 32 64 96 1 2 3 6 TOTAL
Setouts/Max Load 1,286                                   804                       402                      268                      127                        64                        42                        21 Total Containers (1st Container)                       6 Loads if All Subs (per Week)                  0.00                  0.01                      0.01                    0.02                    0.05                    0.09                    0.14                    0.28 "FTE Route Factor" 1.07                                    1.07                      1.18                    1.18                    1.40                    1.73                    2.17                    3.26 Adjusted Loads if All Subs 0.00                                    0.01                      0.02                    0.03                    0.07                    0.16                    0.31                    0.92 Cost per Load per Week (F&V) $         15,928
Cost all Loads 79 $                   $                127 $                    280 $                  420 $               1,048 $               2,592 $               4,878 $             14,705 Minimum $           1,048
Equivalent Container Factor 0.08                                    0.12                      0.27                    0.40                    1.00                    2.47                    4.65                  14.03 Containers by Size (Frequency)                    ‐                         ‐ 1                         ‐                                                4                          7                          5                          3 Equivalent Container Units (ECU)                    ‐                   ‐ 0.12                         ‐                                                4                        17                        23                        42                    87 Container Size (Gal) 20 32 64 96 1 2 3 6 TOTAL
Annual Variable Route Costs $         56,956
ECUs              86.76
Annual Variable/ECU $         656.48
Monthly Variable/ECU $           54.71
1st Container
Variable Route Costs/Month 4.14 $                $               6.62 $                14.61 $               21.91 $               54.71 $            135.24 $            254.51 $            767.30 Fixed Costs/Container/Month 40.69 $             $            40.69 $                40.69 $               40.69 $               40.69 $               40.69 $               40.69 $               40.69 Refuse Txfr & Disp Cost/Month 3.62 $                $               5.79 $                11.59 $               17.38 $               36.57 $               73.14 $            109.70 $            219.41 TOTAL MONTHLY RATE @ 1x/wk 48.45 $             $            53.10 $                66.88 $               79.97 $            131.96 $            249.06 $            404.91 $         1,027.39 2nd Container
Disposal 3.62 $                $               5.79 $                11.59 $               17.38 $               36.57 $               73.14 $            109.70 $            219.41 Cost of Container 0.30 $                $               0.31 $                   0.39 $                 0.44 $                 6.08 $                 7.09 $                 8.10 $               12.15 Variable Route Costs/Month 4.14 $                $               6.62 $                14.61 $               21.91 $               54.71 $            135.24 $            254.51 $            767.30 TOTAL MONTHLY RATE @1x/wk 8.06 $                $            12.73 $                26.59 $               39.73 $               97.35 $            215.47 $            372.32 $            998.86 Cost of Container
Container Size (Gal) 20 32 64 96 1 2 3 6
Cost of Container $            36.35 $            37.57 $                47.38 $               53.32 $            729.28 $            850.83 $            972.38 $         1,458.56 includes profit and ffs Yearly Cost over 10 years 0.30                                    0.31                      0.39                    0.44                    6.08                    7.09                    8.10                  12.15 Commercial Solid Waste 20 32 64 96 1 2 3 6 Total Check
Variable $                 ‐ $                      ‐ 7 $                      ‐ $                    $                  219 $                  947 $               1,273 $               2,302 $         56,959 $                (3) Fixed $                 ‐ $                   ‐ 41 $                      ‐ $                    $                     81 $                     41 $                     41 $                     41 $            ‐ 2,930 $ Disposal 1st container $                 ‐ $                      ‐ 6 $                      ‐ $                    $                     37 $                  512 $                  549 $                  658 $          ‐ 21,132 $ Disposal 2nd container $                  ‐ ‐ $                  ‐ $                      ‐ $                    $                   ‐ 110 $                    ‐ $                    ‐ $                    $            ‐ 1,316 $ Cost of Container 2nd Cart $                  ‐ ‐ $                  ‐ $                      ‐ $                    $                      ‐ 18 $                    ‐ $                    ‐ $                    $                ‐ 219 $ Subtotal $                 ‐ $                   ‐ 53 $                      ‐ $                    $                  465 $               1,499 $               1,862 $               3,001 $         82,556 $                (3) HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Comm Yr 1 (H5) -385-
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91 U V WXY Z AA
Town of Hillsborough
Cost of Service Commercial Rates - 2022

ORGANICS
Organics Cost of Service Information 2022
Object Description New Services Organics Profit Total
Variable

10.11 Salaries and Wages 5,485 $                      $                        576 $                         6,061

10.21 Employee Benefits 2,464 $                      $                        259 $                         2,723 20A Services and Supplies 3,180 $                      $                        334 $                         3,514

20.11 Vehicle Maintenance 4,367 $                      $                        458 $                         4,825

20.21 Container Maintenance 633 $                         $                          66 $                            699

20.31 Fuel & Lubricants 1,102 $                      $                        116 $                         1,218 Fixed

20.42 Depreciation ‐ Collection Vehicles 1,456 $                      $                        153 $                         1,609

20.43 Depreciation ‐ Containers 374 $                         $                          39 $                            413

20.51 General and Administrative 3,533 $                      $                        371 $                         3,904

20.81 Interest ‐ Collection Vehicles 562 $                         ‐ $                          $                            562

20.81 Interest ‐ Containers 159 $                         ‐ $                          $                            159 Other Charges
Disposal 11,165 $                   $                       11,165 Land
Interfund Charges
Interfund Reimbursements
Intrafund Charges
Transfer from Balancing Account (298) $                        $                           (298) Intrafund Reimbursements
Total Operational Requirements $                           ‐ $                  34,182 $                     2,372 $                       36,554 Franchise Fees $                    ‐ $              3,418 $                 237 $                         3,655 Frequency Surcharge Revenue (562) $                        $                           (562) Oganics Discount $                     (27,139)
Total Operational Requirements $                       12,508 1st container $                       10,219
2nd container $                            946
Transfer/Processing/Disposal Costs $                       11,165 Fixed Costs $                        (6,207)
Organics Collection Operational Costs $                         7,539 Cost of 2nd Container $                               11 Total Organics Operational Requirements $                       12,508 Fig Check s/b 0 $                             ‐
Organics Tip Fees per Gallon/Month 0.41 $
Organics Lbs/Gallon 1.31 $
Solid Waste Gallons/ Cubic Yard 202.00
20 Gal Organics Pounds per Setout 26
32 Gal Organics Pounds per Setout 42
64 Gal Organics Pounds per Setout 84
96 Gal Organics Pounds per Setout 125
Side Loaders 1
Rear Loaders
S/L Capacity 25.91
R/L Capacity
Collection Body Organics Yards 25.91
Collection Body Organics Tons 8.42
Cost/min for additional freq. of service 4.68 $
Additional Service Frequency Time (Minutes) 5.0
Additional Service Frequency Cost 23.42 $
HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Comm Yr 1 (H5) -386-
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91 AB AC AD AE AF AG AH AI AJ AK
Town of Hillsborough
Cost of Service Commercial Rates - 2022

ORGANICS
Operational Information
Container Size (Gal) 20 32 64 96 1 2 3 6 TOTAL
Processing lbs per Container
Cart 1 26.14                                            41.82                     83.64                   125.47                   264.00                   528.01                   792.01               1,584.02 Cart 2 26.14                                            41.82                     83.64                   125.47                   264.00                   528.01                   792.01               1,584.02 Subscribed Gal per Wk
Cart 1                            ‐ ‐                                                    64                         192                         202                          ‐ 404                                              1,212                     2,074 Cart 2                            ‐ ‐                          ‐                                                   ‐ 192                          ‐                          ‐                          ‐                                                 192 Cart 1 Tons                        ‐ ‐                                                2                          7                          7                        ‐ 14                                             41                          70 Cart 2 Tons                        ‐ ‐                       ‐                                                 ‐ 7                       ‐                       ‐                       ‐                                                   7 Calc'd Disposal Rate/ton $               145.00
Cart 2 Disposal $                       ‐ ‐ $                       $                      ‐ 946 $                       ‐ $                       ‐ $                       ‐ $                       $                     946 Organics Accounts ‐ 1st container 0 0 1 2 1 1 0 1 6
Organics Accounts ‐ 2nd container 0 0 0 2 0 0 0 0 2
TOTAL Organics Lifts                            ‐ ‐                                                      1                             4                             1                              ‐ 1                                                      1                             8 2nd Carts                            ‐ ‐                          ‐                                                       ‐ 2                          ‐                          ‐                          ‐                                                      2 Organics Lifts ‐ 1st container 0 0 1 2 1 3 0 1 8
Organics Lifts ‐ 2nd container 0 0 0 2 0 0 0 0 2
TOTAL Organics Lifts                            ‐ ‐                                                      1                             4                             1                              ‐ 3                                                      1                          10 Estimation of Equivalent Routes
Container Size (Gal) 20 32 64 96 1 2 3 6 TOTAL
Containers 0 0 1 4 1 1 0 1 8
% of All Subscribers 0% 0% 13% 50% 12.50% 12.50% 0.00% 12.50% 100% Ideal 1‐Load Route?                            ‐ ‐                                                    25                           67                          8.0                           ‐ 4.0                                                   1.3                        106 Setouts in Max Load 644                                                   403                         201                   134.23                     63.79                     31.90                     21.26                     10.63 Req'd Rte Days 0                                                            0                             0                             0                             0                             0                             0                             1 Calculated Loads 0.1
Lifts/Hr.                       16
Route Time
Container Size (Gal) 20 32 64 96 1 2 3 6 Standard
Hours to Pack‐out 40.10                                            25.06                     12.53                       8.35                       3.97                       1.99                       1.32                       0.66 Avg Route Time 8.09                                                8.09                       8.09                       8.09                       8.09                       8.09                       8.09                       8.09                       8.09 Loads 1.00                                                1.00                       1.00                       1.00                       3.00                       5.00                       7.00                     13.00                       2.00 Hours/Dump Trip 1.16                                                1.16                       1.16                       1.16                       1.16                       1.16                       1.16                       1.16                       1.16 Dump Time 1.16                                                1.16                       1.16                       1.16                       3.49                       5.82                       8.14                     15.12                       1.16 Total Route Time 9.26                                                9.26                       9.26                       9.26                     11.58                     13.91                     16.23                     23.21                       9.26 FTE Route Factor 1.00                                                1.00                       1.00                       1.00                       1.25                       1.50                       1.75                       2.51                       1.00 Accounts
20 32 64 96 1 2 3 6 Total
1st Containers                            ‐ ‐                                                      1                             2                             1                              ‐ 1                                                      1                             6 2+ Containers                            ‐ ‐                          ‐                                                       ‐ 2                          ‐                          ‐                          ‐                                                      2 Refuse Accounts                           ‐                              ‐ 1                          ‐                                                      2                             1                             1                             1                             6 ECU                            ‐ ‐                                                      3                           19                           13                            ‐ 30                                                  152                        217 Difference between 1st & Refuse                       (211) Reconciliation of Billed Revenue to Costs
Refuse Accounts                             6
Monthly Rate $               159.47
Annual Revenue $               11,482
2+ Cart Accounts                             2
Monthly Rate $                 53.73
Annual Revenue $                 1,290
Total Annual Revenue $               12,771
Total Organics Rev Requirement $               12,508
Fig Check s/b 0 $                     264
HF &H Consultants, LLC
7/26/2022
Attachment A

Hillsborough - Base Model 16Jun2022.xlsm
COS Comm Yr 1 (H5) -387-
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91 A AM AN AO AP AQ AR AS AT AU AV AW
Town of Hillsborough
Cost of Service Commercial Rates - 2022

ORGANICS
Container Size (Gal) 20 32 64 96 1 2 3 6 TOTAL
Setouts/Max Load 644.31                                          402.69                        201                        134                          64                          32                          21                          11 Total Containers (1st Container)                                ‐ ‐                                                    1                            2                            1                             ‐ 1                                                    1                              6 Loads if All Subs (per Week)                             0.01                      0.01                      0.03                      0.04                      0.09                      0.19                      0.28                      0.56 "FTE Route Factor" 1.00                                                   1.00                      1.00                      1.00                      1.25                      1.50                      1.75                      2.51 Adjusted Loads if All Subs 0.01                                                   0.01                      0.03                      0.04                      0.12                      0.28                      0.49                      1.42 Cost per Load $                       338
Cost all Loads 3 $                                $                         5 $                       10 $                       15 $                       40 $                       96 $                    167 $                    478 Minimum $                           3
Equivalent Container Factor 1.00                                                   1.60                      3.20                      4.80                    12.64                    30.35                    53.15                  151.98 Containers by Size (Frequency)                                ‐ ‐                                                    1                            4                            1                             ‐ 1                                                    1 Equivalent Container Units (ECU)                                ‐ ‐                                                    3                          19                          13                           ‐ 30                                                152                          217 Annual Variable Route Costs $                   7,539
ECUs                          217
Annual Variable/ECU $                   34.68
Monthly Variable/ECU $                     2.89
1st Container
Variable Route Costs/Month 2.89 $                          $                   4.62 $                   9.25 $                 13.87 $                 36.53 $                 87.73 $              153.60 $              439.25 Fixed Costs/Container/Month (86.21) $                       $               (86.21) $               (86.21) $               (86.21) $               (86.21) $               (86.21) $               (86.21) $               (86.21) Organics Txfr & Disp Cost/Month 8.21 $                          $                 13.14 $                 26.28 $                 39.42 $                 82.94 $              165.88 $              248.82 $              497.65 TOTAL MONTHLY RATE @ 1x/wk (75.10) $                       $               (68.44) $               (50.68) $               (32.91) $                 33.26 $              167.40 $              316.21 $              850.69 2+ Containers
Disposal 8.21 $                          $                 13.14 $                 26.28 $                 39.42 $                 82.94 $              165.88 $              248.82 $              497.65 Cost of Container 0.30 $                          $                   0.31 $                   0.39 $                   0.44 $                   6.08 $                   7.09 $                   8.10 $                 12.15 Addl Operating Costs 2.89 $                          $                   4.62 $                   9.25 $                 13.87 $                 36.53 $                 87.73 $              153.60 $              439.25 TOTAL MONTHLY RATE @ 1x/wk 11.41 $                        $                 18.08 $                 35.92 $                 53.73 $              125.54 $              260.70 $              410.52 $              949.05 Cost of Container
Container Size (Gal) 20 32 64 96 1 2 3 6
Cost of Container $                       36.35 $                 37.57 $                 47.38 $                 53.32 $              729.28 $              850.83 $              972.38 $           1,458.56 Yearly Cost over 10 years 0.30                                                   0.31                      0.39                      0.44                      6.08                      7.09                      8.10                    12.15 Residential Organics 20 32 64 96 1 2 3 6 Total Check
Variable $                            ‐ ‐ $                      $                         9 $                       55 $                       37 $                        ‐ 88 $                      $                    439 $                    ‐ 7,539 $ Fixed $                            ‐ ‐ $                      $                     (86) $                   (172) $                     (86) $                      ‐ (86) $                      $                     (86) $                   ‐ (6,207) $ Disposal 1st container $                            ‐ ‐ $                      $                       26 $                       79 $                       83 $                     ‐ 166 $                      $                    498 $                  ‐ 10,219 $ Disposal 2nd container $                            ‐ ‐ $                      ‐ $                      $                        ‐ 79 $                      ‐ $                      ‐ $                      ‐ $                      $                        ‐ 946 $ Cost of Container 2nd Cart $                            ‐ ‐ $                      ‐ $                      $                          ‐ 1 $                      ‐ $                      ‐ $                      ‐ $                      $                          ‐ 11 $ Subtotal $                            ‐ ‐ $                      $                     (51) $                       42 $                       33 $                     ‐ 167 $                      $                    851 $                 12,508 $                          ‐ Proof of all Costs included in the rates
Total Carts 0 0 1 2 1 1 0 1
Rates (75.10) $                       $               (68.44) $               (50.68) $               (32.91) $                 33.26 $              167.40 $              316.21 $              850.69 First Cart Revenue (annual) $                            ‐ ‐ $                      $             (608.14) $             (789.96) $              399.15 $            ‐ 2,008.83 $                      $         10,208.23 $           11,218.11 Multiple Frequency Revenue
Pick‐ups >1 0 0 0 0 0 0 0 0
Variable/Disposal Only 11.10 $                        $                 17.76 $                 35.53 $                 53.29 $              119.47 $              253.61 $              402.42 $              936.89 Frequency Revenue before Premium $                            ‐ ‐ $                      ‐ $                      ‐ $                      ‐ $                      ‐ $                      ‐ $                      ‐ $                      ‐ $ Subtotal $                            ‐ ‐ $                      $             (608.14) $             (789.96) $              399.15 $            ‐ 2,008.83 $                      $         10,208.23 $           11,218.11 Second Carts 0 0 0 2 0 0 0 0
Rates 11.41 $                        $                 18.08 $                 35.92 $                 53.73 $              125.54 $              260.70 $              410.52 $              949.05 Second Cart Revenue $                            ‐ ‐ $                      ‐ $                      $            ‐ 1,289.63 $                      ‐ $                      ‐ $                      ‐ $                      $             1,289.63 Total Additional Lifts 0 0 0 2 0 0 0 0
Frequency Surcharge Subtotal 23.42 $                        $                 23.42 $                 23.42 $                 23.42 $                 23.42 $                 23.42 $                 23.42 $                 23.42 $                            ‐ ‐ $                      ‐ $                      $               ‐ 562.07 $                      ‐ $                      ‐ $                      ‐ $                      $                 562.07 Total Revenue 13,069.80 $
Total Costs 13,069.80 $
$                       ‐
Organics Cart Rates by Cost of Service
HF &H Consultants, LLC
7/26/2022
Attachment A