Agenda packet — Palm Springs City Council, May 26, 2022 (part 4 of 4)

Initial Material Hand ling Cost Index • Cart Service Rate Adj ustment A
ea ...

B
facilities 1 Tonnage 1 Cost Per Ton '
Edom Hill Transfe r Station: Refuse 11,9 53.6 $51.49
Edom Hill Transfe r Station: Green Waste 2 000 .5 $56.01 Edom Hill Transfe r Station: Mixed Recycling 4, 367 .2 $91.64 Coachella Vallev Com .. ,..,t : On~a nic Was te . $75.00 Mate ria l Handling Tons & Cost 18,321.2
Index • Weii:ht ed Averair:e Cost Per Ton •
C
Base Material
Ha ndling Cost
(COL A • COl BJ
$615,489
$112 045
$400, 211
$0
$1,127,746
$61.5540
Tolols moy riot odd up due to ro11nc6r79
Initial Mate ria l Ha nd ling Cost Index • Bin Service Rate Adjustme nt D E F
Base Materi al
ea ... Hand ling Cost
Row Facili ties Tonnage ' Cost Per Ton • {COL D • COL E) 7 Edom Hill Transfe r Station: Refuse 31,089 .8 $51.49 $1,600,815 8 Edom Hill Transfe r Station: Green Waste 8.0 $56.01 $448 9 Edom Hill Transfe r Station: Mixed Recycling 712.7 $91.64 $65, 310 10 Coachella Valley Compost : Food Was te 44.l $75.00 $3, 308 11 Mate ria l Hand line: Tons & Cost 31.854.6 Sl 6 69 881 12 Index • Weight ed Average Cost Per Ton " $52.4 220
Totols mov t1ot odd up d~ to fOWIOlrio
Initial Materia l Ha ndling Compone nt W eightings
G
Mat erial
Ha ndling
Component
" Row Sector
13 Cart Service 23.0974 9£
14 Bin Service 22.5112%
(1) Pos t collection material hand ling facilitie s planne d for use under this agreeme nt. (2) Assumed beginning tonnage to be delive red to each facility. (3) Most current rates a t each faci lity.
(4) Tota l Base Mate rial Handling Cos t d nfided by Total Base To nnage.

Palm Springs Collection Services Agreement

Palm Springs Draft Agreement Page 96
EXHIBIT 3: CONTRACTOR’S SB 1383 SCOPE OF SERVICES
A. EDUCATION AND OUTREACH
Program Administration
• CONTRACTOR shall employ a full-time Environmental Coordinator to oversee the SB 1383 Program including the activities of administration, public outreach, compliance monitoring, enforcement coordination and reporting for its three jurisdictions (Palm Springs, Desert Hot Springs and the County Franchise Area No. 10). Costs for this position will be allocated 70-20-10 respectively. CITY’s portion will in turn be allocated 10% to the Residential sector and 90% to the Commercial/Industrial sector. • CONTRACTOR’s Environmental Coordinator will supervise a staff of Recycling Ambassadors and will be responsible for coordinating all outreach, enrollment, education, monitoring, enforcement, and reporting activities associated with SB 1383. • CONTRACTOR’s shall designate its Environmental Coordinator not later than January 1, 2022.
a. The Environmental Coordinator will be CONTRACTOR’s primary public education and outreach representative, virtually or in-person, with community organizations (including, but not limited to, ONE -PS, Chamber of Commerce, Main Street, PS Resorts, PS Hospitality Association), and at special events (including, but not limited to, VillageFest, ONE -PS annual picnic, PS Farmers Market). CONTRACTOR’s Environmental Coordinator shall participate with CITY in up to three (3) educational/informational events each calendar quarter.

1. Residential Outreach, Education
Outreach to Residential Customers will occur in the following manner. a. Newsletters. CONTRACTOR shall announce and promote the Residential Organic Waste Recycling Program in consecutive issues of the quarterly Residential newsletters approved by the City and distributed [month][year], and [month][year]. b. Subscription Form. CONTRACTOR shall direct mail subscription forms approved by CITY to Customers with option for completing online ( July 2022 or as soon thereafter as practical).

The subscription form will allow Customers to: (1) Specify the size of Organic Waste Recycling Cart desired; and, (2) Enable part-time residents to defer delivery to a date certain. c. Recycling Guide . CITY shall provide printed Recycling Guides to CONTRACTOR and CONTRACTOR shall distribute a Recycling Guide with each Organic Waste Cart delivered.

Contractor shall also direct mail a Recycling Guide to each existing green waste Customer and to new Customers when they are enrolled for an Organic Waste Collection services.

2. Commercial Outreach, Education, Monitoring
a. In-Person Outreach & Education . CONTRACTOR shall assign two (2) Recycling Ambassadors, or full-time equivalents, to the CITY and to engage directly with customers. The Ambassadors will be uniformed, will have experience engaging with the public, and will be professional in Item 3E - 177

Palm Springs Draft Agreement Page 97
their demeanor. CONTRACTOR shall give hiring preference to hiring residents of the CITY and to the ability to communicate in Spanish.
• CONTRACTOR’s Recycling Ambassadors shall utilize tablets that interface with CONTRACTOR’s customer relationship management system in real time for electronic record keeping and electronic reporting.
• CONTRACTOR Recycling Ambassadors assigned to City shall be hired not later than October 1, 2022 or as soon thereafter as practical.
b. Focus Groups. CONTRACTOR shall cooperate with CITY and participate in two (2) focus groups comprised of members of specific business community segments for purposes of planning outreach, education and Organic Waste Recycling program introduction. c. Community Outreach . CONTRACTOR’s Environmental Coordinator will be CONTRACTOR’s primary public outreach and education representative, virtually or in-person, for community organizations (including, but not limited to, ONE-PS, Chamber of Commerce, Main Street, PS Resorts, PS Hospitality Association), and at special events (including, but not limited to, VillageFest, ONE-PS annual picnic, PS Farmers Market).
d. Business-to-Business Outreach. CONTRACTOR’s Recycling Ambassadors shall meet in-person with Commercial Customers to:
• Inform Customers about Recycling and Organic Recycling programs, • Enroll Customers in Recycling and Organic Recycling Programs, • Train Customer employees in proper practices,
• Monitor Customer participation and practices, and
• Educate Customers as to proper recycling practices and Waste Reduction.

CONTRACTOR shall maintain an electronic log of such meetings for review by CITY upon request.
e. Written Outreach. Written outreach (by hard copy or electronic copy) shall consist primarily of the following: quarterly newsletters, recycling guides, and webpages. f. Quarterly Newsletters . CONTRACTOR shall keep Customers informed about Solid Waste programs, services, and events through separate Residential and Commercial quarterly newsletters issued at the start of each calendar quarter. • The July 2021, October 2021, January 2022, April 2022, and July 2022 issues shall emphasize the Organic Waste Recycling Program.
• Residential and Commercial newsletters shall be prepared according to the following timeline:
o Sixty (60) days before the start of each calendar quarter, CONTRACTOR’s Contract Liaison shall confer with the CITY’s Contract Administrator on the subjects to be addressed in the next newsletter.

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o Thirty (30) days before the start of each calendar quarter, the CONTRACTOR ’s Contract Liaison will provide a draft of the next newsletter to the City’s Contract Officer for comment and approval.
o Within five (5) calendar days of receipt of the draft newsletter, the CITY’s Contract Officer shall return a redlined updated newslette r text to CONTRACTOR’s Contract Liaison.
o Not later than the first day of the calendar quarter, CONTRACTOR shall mail the final newsletters via the US Postal Service to the intended recipients AND post the newsletter on its website.
• Residential newsletters shall be bilingual (English & Spanish) and shall be produced on 11-inch by 17-inch stock, twice folded with an address panel for self-mailing. Commercial newsletters shall be produced on 8 ½-inch by 11-inch stock, folded once with an address panel for self-mailing.
g. Residential & Commercial Recycling Guides. The CITY shall design, prepare and print sufficient copies of a Residential recycling guide and a Commercial recycling guide for the following distribution methods:
• Initial Residential Distribution . With the initial distribution of Organic Waste Recycling Carts, CONTRACTOR shall distribute a recycling guide encased in a carrier envelope accompanying each Cart. Simultaneous with the distribution of Organic Waste Recycling Carts, Contractor shall also mail a recycling guide to each existing green waste Customer. • Initial Commercial Distribution. With the initial enrollment of Commercial establishments in Organic Waste Recycling, CONTRACTOR’s Recycling Ambassadors shall provide each Commercial Customer with a recycling guide. • Special Event Distribution. For use as handouts by CITY staff and CONTRACTOR representatives at special events.
• Annual Distribution. Annually after the initial distribution, the CITY shall mail a recycling guide to each Residential Customer and each Commercial Customer. Contractor shall provide the mailing list for this mailing.
h. Customer Feedback Report. Once annually, for each Commercial Customer for which a Hauler Route review inspection has been performed, CONTRACTOR shall produce a report on the Customer’s recycling practices. The report may be distributed in one of three ways:
electronically via email, hard copy via first class mail, or accessible on Customer’s online account page. The feedback report may summarize services, results of monitoring inspections, and an effectiveness rating of Customer’s recycling practices in narrative, letter grade, dashboard speedometer dial, or other manner of presentation. Report details shall be developed in cooperation with City.
i. Webpage. CONTRACTOR shall maintain separate Residential and Commercial webpages on its website with current information regarding the respective recycling programs with active links to CalRecycle and City’s Office of Sustainability webpages. b. Contractor shall post its quarterly Residential and Commercial newsletters on its website.

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B. RESIDENTIAL SERVICES

1. Cart Specifications, Colors, Identification, and Labels All Carts provided to Customers by CONTRACTOR shall be industry standard rotational molded plastic carts with wheels and attached lids. The Carts shall be of the proper color with identification of purpose and labeling complying with the requirements of SB 1383.

Cart specifications, colors, identification, and labels shall be approved by CITY.

CITY acknowledges that existing Carts provided to Customers do not meet the requirements of SB 1383 for color and labeling and CITY hereby authorizes CONTRACTOR to t ransition from non -compliant to compliant Carts as part of its on- going replacement of aged -out Carts as provided for by the SB 1383 Regulations. For Carts already in service, Contractor shall affix compliant labeling stickers before January 1, 2022, or as reasonably soon thereafter as possible.

CITY and CONTRACTOR will cooperate on the use of QR Codes in labels to enable residents to access a mobile device application to access updated lists of accepted materials and special information and messages related to recycling and organic waste recycling.

2. Accepted Materials
CONTRACTOR shall collect the Accepted Materials listed below for the Residential Recycling Program and the Residential Organic Waste Recycling program. The presence of Prohibited Materials may result in extra charges in accordance with the approved Rate Schedule and/or enforcement actions by City.

RESIDENTIAL NON-ORGANIC RECYCLING PROGRAM
Category Accepted Materials Prohibited Materials
Cardboard
(OCC)
Clean, uncoated & flattened cardboard Soiled cardboard, Wax-coated cardboard Paper Cereal boxes, envelopes, file folders, frozen food boxes, junk mail, magazines, mixed paper, office
paper, newspaper, telephone books, white paper
Facial tissue
Plastics ID codes & common products:
#1 PET – soda water bottles, cups, jars, trays &
clamshells
#2 HDPE – milk jugs, detergent & shampoo bottles,
flowerpots, grocery bags
#3 PVC – cleaning supply jugs, pool liners, twine,
sheeting, automotive product bottles
#4 LDPE – bread bags, paper towel & tissue
overwrap, squeeze bottles, trash bags, six-pack
rings
#5 PP – yogurt tubs, cups, juice bottles, straws,
hangers, sand & shipping bags
Rigid plastic toys, Plastic furniture, Cling
wrap for food, Frozen food bags, #6 PS –
to go containers hot cups, shipping
cushion. #7 Other – polycarbonate,
Lexan, CDs, ABS, Garden hoses
Metal Aluminum cans, Aluminum foil, Empty aerosol cans, Pie tins, Tin, steel, bi-metal cans
Coat hangers
Glass Jars, Bottles Light bulbs, Mirrors, Window glass, Ceramics, Dishes
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Other Green waste, Food waste, C&D,
Electronic waste, Animal waste, Diapers,
Hazardous waste

RESIDENTIAL ORGANIC WASTE RECYCLING PROGRAM
Category Accepted Materials Prohibited Materials
Green Waste
Grass clippings, leaves, weeds, prunings, flowers,
Wood waste & lumber (untreated & unpainted)
Other yard waste
Stumps, Soil, Pressure-treated wood,
Painted wood, Wood with foreign
objects (nails, screws, brackets, etc.),
Glass, Metal, Plastic-coated or wax-
coated cardboard, Any material too
large for container, Palm fronds, Soiled
cardboard
Food Waste
Bagged food waste ONLY
Fruits & vegetables, Dairy products & bread,
Cooked meat & seafood (including bones &
shells), Coffee grounds & filters (except K-pods),
Food soiled paper products, Food-soiled
cardboard products, Fiber-based & certified
compostable foodware
Raw meat & seafood, Rubber bands,
Twist ties, Plastic & non-certified
compostable food containers &
foodware, Recyclables (plastic, glass,
metal), K-pods
Other Hazardous waste, Non-organic waste

3. Changes to Accepted Materials
CONTRACTOR may update the list of Accepted Materials to reflect changes in markets, recyclability of materials, or acceptance by processor by giving sixty (60) days’ advance written notice to CITY and thirty (30) days’ advance written notice to Residential Customers.

The advance notice to Residential Customers may be made through the CONTRACTOR’s quarterly newsletter. Any changes in the list of Accepted Materials shall also be accompanied b y either a new Container label or a sticker affixed by CONTRACTOR to existing Container labels which clearly indicates the updated listing of materials accepted and not accepted.

Any changes in the list of Accepted Materials shall also be accompanied by either a new Container label or a graphic sticker affixed by CONTRACTOR to Containers which clearly indicate the updated listing of materials accepted and not accepted, or through the use of a Quick Response Code (QR Code) affixed by CONTRACTOR to Containers from which Commercial Customers can access the updated listing of materials accepted and not accepted using a smart phone or tablet.

C. COMMERCIAL SERVICES
CONTRACTOR shall perform collections of Refuse, Recycling, and Organic Waste generated by Commercial customers from Bins or Carts provided to business establishments and institutions and to Residential premises subscribing to Bin service.

1. Container Specifications, Colors, Identification and Labels a. Container specifications, colors, identification, and labels shall be approved by CITY. b. CITY acknowledges that existing Containers provided to Customers do not meet the requirements of SB 1383 for color and labeling and CITY hereby authorizes CONTRACTOR to Item 3E - 181

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transition from non -compliant to compliant Carts as part of on -going replacement of aged- out Carts as provided for by the SB 1383 Regulations . For Carts and Bins already in service, CONTRACTOR shall affix labels before January 1, 2022, or as reasonably so on thereafter as possible.
c. CITY and CONTRACTOR will cooperate on the use of QR Codes in labels to enable Commercial customers to access a mobile device application to access updated lists of accepted materials and special information and messages related to recycling and organic waste recycling.

2. Accepted Materials
CONTRACTOR shall collect the Accepted Materials listed below for the Commercial Recycling Program and the Commercial Organic Waste Recycling program.

The presence of Prohibited Materials may result in extra charges, enforcement actions and/or removal of containers.

COMMERCIAL RECYCLING PROGRAM
Category Accepted Materials Prohibited Materials
Cardboard
(OCC)
Clean, uncoated & flattened cardboard Soiled cardboard
Wax-coated cardboard
Paper Cereal boxes, envelopes, file folders, frozen food boxes, junk mail, magazines, mixed paper, office paper,
newspaper, telephone books, white paper

Facial tissue
Plastics ID codes & common products:
#1 PET – soda water bottles, cups, jars, trays &
clamshells
#2 HDPE – milk jugs, detergent & shampoo bottles,
flowerpots, grocery bags
#3 PVC – cleaning supply jugs, pool liners, twine,
sheeting, automotive product bottles
#4 LDPE – bread bags, paper towel & tissue
overwrap, squeeze bottles, trash bags, six-pack rings
#5 PP – yogurt tubs, cups, juice bottles, straws,
hangers, sand & shipping bags
Rigid plastic toys, Plastic furniture,
Cling wrap for food, Frozen food
bags, #6 PS – to go containers hot
cups, shipping cushion, #7 Other –
polycarbonate, Lexan, CDs, ABS,
Garden hoses
Metal Aluminum cans, Aluminum foil, Empty aerosol cans, Pie tins, Tin, steel & bi-metal cans
Coat hangers
Glass Jars, Bottles Light bulbs, Mirror, Window glass,
Ceramics, Dishes
Other Green waste, Food waste,
Construction debris, Electronic
waste, Animal waste, Diapers,
Hazardous waste

COMMERCIAL ORGANIC WASTE RECYCLING PROGRAM
Category Accepted Materials Materials NOT Accepted
Green Waste Grass clippings, leaves, weeds, prunings, flowers, Wood waste & lumber (untreated & unpainted)
Stumps, Soil, Pressure-treated
wood, Painted wood, Wood with
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Other yard waste foreign objects (nails, screws,
brackets, etc.), Glass, Metal, Plastic-
coated or wax-coated cardboard,
Any material too large for
container, Palm fronds, Soiled
cardboard
Food Waste Bagged food waste ONLY
Fruits & vegetables, Dairy products & bread, cooked
meat & seafood (including bones & shells), Coffee
grounds & filters (except K-pods), Food soiled paper
products, Food-soiled cardboard products, Certified
fiber-based foodware
Raw meat & seafood, Rubber
bands, Twist ties, Plastic and non-
certified food containers &
foodware, Recyclables (plastic,
glass, metal). K-pods
Other Hazardous waste, Non-organic
waste

The advance notice to Commercial Customers may be made through the CONTRACTOR’s quarterly newsletter. Any changes in the list of Accepted Materials shall also be accompanied by either a new Container label or a sticker affixed by CONTRACTOR to existing Container labels which clearly indicates the updated listing of materials accepted and not accepted.

4. Enrollment
CONTRACTOR’s representative shall enroll each new Commercial establishment in Recycling and Organic Waste Recycling service in real time by electronic entry in CONTRACTOR’s customer relationship management system. CONTRACTOR shall provide each new subscribing Commercial establishment with an in-person orientation to Recycling and Organic Waste Recycling and a printed recycling guide.

CONTRACTOR’s Customer file shall include record of recycling orientation, education, and every training conducted by CONTRACTOR.

CONTRACTOR shall maintain a monthly cumulative record of all Customer enrollments, including name, service address, subscribed services, recycling orientation, education, and trainings, and such record shall be made available to CITY upon request.

D. OBSERVED CONTAMINATION
If CONTRACTOR’s Collection driver or other representative encounters a Container with noticeable contaminants, the driver or representative shall:
• Tag the Container as uncollectable.
• Photograph the Container’s contents.

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• Report the service address to CONTRACTOR’s dispatch office by electronic tablet or by radio or phone.
• Sort and collect the materials or leave the tagged Container uncollected for later collection as disposed waste, pursuant to CITY Code.

CONTRACTOR’s Ambassador or dispatch office shall notify the Customer of the condition by telephone or electronic mail and advise Customer of the need to remove the contaminates for proper recycling or disposal. Contractor’s field representative shall initiate an in -person visit with Customer to educate the Customer’s representative and offer training of Customer’s employees.

A report of observed contamination shall be reported to CITY electronically or in writing.

1. Uncollected Containers
BLUE, GREEN OR BROWN Containers uncollected by CONTRACTOR due to contamination shall be collected for disposal as GRAY Container Solid Waste. Containers with contamination tagged before Noon shall be collected for disposal the same day, while Containers with contamination tagged after Noon shall be collected for disposal the following workday. Containers with contamination collected as Refuse shall be subject to the return trip charge specified in the approved Rate Schedule except that return trip charge shall be waived as courtesy for a Customer’s first offence.

2. Waivers
Commercial establishments may be granted a waiver by CITY from recycling, green waste recycling or food waste recycling for reasons of self- hauling, alternative arrangements, de minimis generation, or space limitations as may be specified in CITY and State regulations.

CITY shall establish regulations for waivers and an application form and for a review and approval process.

CONTRACTOR shall cooperate with CITY in performing site reviews before waivers are granted or denied.

CITY’s waivers may be granted for a specified period of time. CITY shall provide CONTRACTOR with a record of each granted waiver, and CONTRACTOR shall enter each waiver into CONTRACTOR’s Customer file.

E. CONTAMINATION MONITORING AND HAULER ROUTE REVIEWS

1. Written Work Plan
Within thirty (30) days following the Effective Date of the Agreement and prior to January 1 of each subsequent year, CONTRACTOR shall provide CITY with a written schedule for the calendar year for performing Hauler Route reviews and Waste Evaluations. During the course of a calendar year, CONTRACTOR may amend the schedule by providing CITY with a revised written schedule.

2. Contamination Monitoring Program
CITY has elected to utilize the three-Container Organic Waste Collection Service as described in 14 CCR Section 18984.1 as its approach to Standard Collection Service for Residential and Commercial collections.

CONTRACTOR shall perform contamination monitoring of its Residential and Commercial services. a. Residential Contamination Monitoring. CONTRACTOR’s Residential contamination monitoring shall consist of Hauler Route reviews and Waste Evaluations.

Residential Hauler Route reviews entail visual inspections of select individual Residential Containers for contamination and are intended to satisfy the SB 1383 contamination monitoring requirement (14 CCR Section 18984.5(b)).

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Residential Waste Evaluations entail physical inspections of samplings taken from truckloads of GRAY, BLUE, and GREEN Container waste to determine the amount of Accepted Materials present and are intended to provide CITY with a means of monitoring diversion progress and the effectiveness of public education and outreach efforts. a. Commercial Contamination Monitoring . CONTRACTOR’s Commercial contamination monitoring shall consist of Hauler Route reviews and Comprehensive Individual Inspections. (The term “Commercial customers” means business establishments utilizing Bin services, and detached residential dwelling neighborhoods, attached residential dwelling neighborhoods, and multi-family apartment complexes utilizing Bin services.) Commercial Hauler Route reviews entail visual inspections of select individual Commercial Containers for contamination and are intended to satisfy the SB 1383 contamination monitoring requirement (14 CCR Section 18984.5(b)).

Commercial Comprehensive Individual Inspections entail detailed physical inspections of the contents of Containers used by indi vidual Commercial customers and are intended to be a part of CITY’s enforcement program.
(Waste Evaluations will not be performed in the Commercial contamination monitoring program.)
b. Contamination Monitoring Program Evaluation. Following the end of each calendar year, the Parties shall meet to evaluate the contamination monitoring program.

3. Hauler Route reviews
A Hauler Route review means monitoring select Customer Containers for contamination and entail:
• A visual inspection for the presence of prohibited materials in each GRAY, BLUE, GREEN or BROWN Container used by an individual Customer;
• That are available for collection on Customer’s regular collection day; • Where the Customer is part of a sample population selected at random; • From each of CONTRACTOR’s GRAY Container daily routes.

For each GRAY Container selected for inspection, every Container offered within that Customer class will be inspected as part of the work.
a. Visual Inspection . A “visual inspection” entails scrutinizing the contents of Containers by CONTRACTOR’s representative for the obvious presence of any Prohibited Materials (which may involve probing the contents with a poker and opening bags or boxes toward the top of the Container but does not mean the opening of bags or boxes lower within the Container, nor the removal of the contents of the Container to perform the inspection). b. Inspection Schedule. CONTRACTOR’s Hauler Route review inspections of Containers on an individual route shall be conducted on the same day, however, visual inspections for different routes need not be conducted on the same day or even in the same week.

To accommodate CONTRACTOR’s available resources, Residential and Commercial Hauler Route review ins pections may be staggered over the course of the calendar year at CONTRACTOR’s discretion in accordance with the written work plan.

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c. Sample Selection. Customers chosen to be part of a sample population for Hauler Route review inspection shall be selected at random by route. c. Inspection Day & Sample Size. Residential Hauler Route review inspections shall occur on the day of collection. Commercial Route Review inspections may be performed on the day prior to or day of a scheduled collection. If any of the Containers of a Customer have been collected prior to inspection, the inspector will move on to the next Customer on the target list.

To maintain the target sample size, the number of randomly selected accounts to be sampled on a route will be tripled so that the target sample size can still be achieved even if some accounts are not inspected because one or more Containers of an account have already been collected.

Once CONTRACTOR’s inspector has performed the required number of inspections on a route or exhausted the list of randomly selected accounts, inspections for that route shall be determined as concluded.
d. Hauler Route Review Procedures. When conduc ting a visual inspection as a part of a Residential or Commercial Hauler Route review, CONTRACTOR’s inspector shall perform the following procedures with the intent of determining if any Prohibited Material is present:

1. Confirm the service address;

2. Record the Customer’s subscribed number and size of Containers by type (GRAY, BLUE, GREEN, or BROWN);

3. Record the number and size of Containers by type (GRAY, BLUE, GREEN, or BROWN) available for inspection;

4. Open the lid of each Container;

5. Inspect the cont ents of each Container for the presence of any Prohibited Materials visible to the inspector (which may involve probing the contents with a poker, but does not mean the removal of the contents of the Container to perform the inspection; if waste is bagged, inspector will slash open the top one or two bags and probe the contents);

6. Make a finding of either: “PASS” (meaning that no Prohibited Materials were observed), or “FAIL” (meaning that some Prohibited Materials were observed);

7. Record the finding for each Container;

8. Attach a PASS or a FAIL notice to each Container. For Commercial customers receiving a FAIL rating, CONTRACTOR’s inspector shall attempt to contact a responsible representative of the Customer and deliver the notice in person. When in -person delivery is not possible, the notice shall be delivered via US Postal Service or by electronic mail.
e. Post-Inspection Notices . All post -inspection notices shall include a message advising the Customer that the inspection was performed as required by State Regulations solely for the purpose of minimizing Prohibited Materials in Containers and shall contain the date of inspection and identification of the inspector.

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• PASS notices shall carry a positive message congratulating the Customer on their environmental awareness and participation.
• FAIL notices shall identify the Prohibited Material(s) found and direct the Customer to the CITY’s and CONTRACTOR’s websites for more information regarding correct recycling practices.

The form and content of post-inspection notices shall be approved by the CITY in advance of their use.

4. Contamination Monitoring Reporting
a. Hauler Route Review Reports. Contractor shall maintain a record of each Route Review inspection including the date of inspection, Customer name, service address, Container description (including type, size, and number), PASS or FAIL finding, notification made, if any, and recommended follow-up action, if any.

For Containers with excessive amounts of Prohibited Waste, the record shall include a photographic record of the inspection and a copy of written notification to the Customer. b. Monthly Report. Monthly, Contractor shall provide CITY summary of inspections performed.

Records of individual inspections shall be maintained and available for inspection by the CITY. c. Annual Report. Within thirty (30) days of completing the Residential or Commercial Hauler Route reviews for the calendar year, CONTRACTOR shall submit a report to the CITY which shall summarize the overall findings by Container type, summarize the findings by Container type by daily route, provide a listing of each account inspected organized by route, and indicating the finding for each Container by type for that Customer. d. Waste Evaluation Reports. Within thirty (30) days of completing Waste Evaluations for the calendar year, CONTRACTOR shall submit a report to the CITY describing the procedures, dates, routes evaluated, and the amounts of Prohibited Materials expressed as a percentage of the total weight of the samples.
e. Outreach and Education by CITY. As a follow-up to CONTRACTOR’s reports of Hauler Route reviews, CITY shall perform outreach and education to individual Residential and Commercial generators that acknowledges Customers achieving a PASS rating and educates C ustomers receiving a FAIL rating.

5. Residential Hauler Route Reviews
The number of visual inspections performed in a Residential Hauler Route review shall be determined as follows:
a. Initial Residential Hauler Route Review . In the first calendar year of the Agreement, CONTRACTOR shall perform Route Review inspections of the available GRAY, BLUE, and GREEN Containers of 27 Residential Customers from each of CONTRACTOR’s daily GRAY Container Residential Routes.

Example: If CONTRACTOR operates 3 GRAY Container routes, 5 days per week, the accounts to be sampled would total 405.
[3 routes x 5 days = 15 daily routes; 15 daily routes x 27 inspections = 405 total inspections]
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b. Subsequent Hauler Route Reviews. Commencing January 1, 2023, and each calendar year thereafter, CONTRACTOR’s Hauler Route review shall consist of visual inspections of a combination of 320 new inspections and up to 80 re-inspections:
• New Inspections. For new inspections, 21 accounts will be selected randomly from each route. To account for the possibility that some ac counts may have been collected prior to the arrival of the inspector, the random list shall include three times the number of inspections planned.

Example: If CONTRACTOR operates 3 GRAY Container routes, 5 days per week, the 320 total samples would result in 21 inspections per route. [320 total samples ¸ 15 daily routes = 21.33; say 21]
If 21 individual inspections are to be performed, the list of random account addresses for a route shall be 63.
[21 planned inspections x 3 = 63 random account addresses] • Re-Inspections. Up to 80 Residential Customers selected by CITY from among Customers that received a FAIL rating in the previous year’s inspection shall be re - inspected in the following year. To the extent reasonably possible, CONTRACTOR shall attempt to p erform re -inspections at about the same time of year as the original inspection.
c. Residential Container Exchanges It is intended that CONTRACTOR’s Visual Inspections of Residential Containers will be made on the Route, however, at CONTRACTOR’s discretion, Customer Containers to be inspected in a Hauler Route review may be exchanged on the route, like-for-like, and brought to CONTRACTOR’s facility where the visual inspection will be performed. If the exchange process is used, replacement Containers shall be either new Containers or clean refurbished Containers.

6. Commercial Hauler Route Reviews
In the first calendar year of the Agreement, and each calendar year thereafter, CONTRACTOR shall perform Hauler Route review inspections of the GRAY, BLUE, GREEN, or BROWN Containers of approximately 400 Commercial Customers allocated equally over each of CONTRACTOR’s Commercial GRAY Container Routes.

Example: If CONTRACTOR operates 7 GRAY Conta iner routes, 5 days per week, the 385 accounts to be inspected would be distributed over 35 routes, resulting in 11 account inspections per route.
[7 routes x 5 days = 35 daily routes; 385 inspections ] Roll-off Containers (debris boxes and stationary compactors) used regularly by Commercial customers are limited in their number and shall be included for selection for a Commercial Hauler Route review but shall be limited to two such Containers per calendar year.
a. Commercial Re -Inspections. Commercial Customers that fail an inspection shall be re - inspected within sixty (60) days following outreach by CONTRACTOR or CITY to that customer. Commercial Customers that fail a re -inspection shall be reported individually to the CITY for follow-up by the CITY . CONTRACTOR’s requirement to perform re -inspections shall be limited to 7 per calendar month. On an annual basis, every route will be reviewed based on the inspection schedule included in the written work plan.

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7. Residential Waste Evaluations
A Residential Waste Evaluation is the measurement of contamination found in a 200 -pound sample of waste taken from a route truck load of GRAY Container waste collected from Residential customers from a single route.
a. Frequency. Residential Waste Evaluations shall be performed on each GRAY Container route once each calendar year.

To accommodate CONTRACTOR’s available resources, Residential Waste Evaluations may be staggered over the course of the calendar year at CONTRACTOR’s discretion according to the written work plan.
b. Residential Waste Evaluation Procedures
In a Residential Waste Evaluation, an approximately 200 -pound sample is collected from a single load of GRAY Container waste from a daily route and analyzed for Prohibited Material.

CONTRACTOR shall adhere to the following procedures when conducting a Residential Waste Evaluation:
c. Frequency & Number. Residential Waste Evaluations shall be conducted once annually, on a load from each Residential GRAY Container route.

Example: If Contractor operates 3 Residential GRAY Container routes 5 days per week, 15 Waste Evaluations shall be performed. [3 routes x 5 days = 15 Waste Evaluations]
d. Load Sample. A Container load of at least 3-tons from which a sample is to be taken shall be delivered to a permitted solid waste facility and deposited onto a sorting area.

One sample of approximately 200 -pounds, randomly selected from different areas of the load, shall be removed from the load for examination.

For each 200 -pound sample, any Prohib ited Material shall be physically removed and weighed.

The percentage of contamination shall be determined by dividing the total weight of Prohibited Material by the total weight of the sample.

Example: If the sample weighs 200 -pounds and the total weight of Prohibited Materials is 40 -pounds, the computed percentage of Prohibited Materials is 20%.
[40-pounds Prohibited Material ¸ 200-pound sample weight = .20 = 20%]

8. Commercial Enforcement Inspections
Individual Enforcement Inspections shall be reserved for situations at Commercial establishments that are part of a CITY code enforcement action for excessive contamination or persistent non -participation.

Enforcement Inspections will not be deployed for Containers collected individually from Residential Customers.

When directed by CITY by a seven (7) day advance written notice, CONTRACTOR shall perform an Enforcement Inspection of Containers used by a Commercial Customer. At CONTRACTOR’s sole discretion, such inspections may be performed at the Customer’s premises or at CONTRACTOR’s facility.

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Palm Springs Draft Agreement Page 109
CONTRACTOR shall be compensated by the Customer for the cost of a n Enforcement Inspection in accordance with the rates authorized in the approved Rate Schedule. Before commencing an Enforcement Inspection, CONTRACTOR shall provide Customer with a written estimate of the cost.

Enforcement Inspections shall be performed under the direct supervision of the CITY as a part of an enforcement action and shall consist of a physical inspection of each Container used by Customer to determine the percentage by weight of Prohibited Material present in each of Customer’s Containers.

CONTRACTOR’s inspections shall entail the following steps:

1. Identify the proper GRAY, BLUE, GREEN and/or BROWN Containers and confirming the associated Customer;

2. Weigh the contents of each Container;

3. Physically separate Prohibited Material from Accepted Material of each Container;

4. Weigh the Prohibited Materials recovered from each Container;

5. Compute the rate of Prohibited Material for each Container as a percentage of the total weight of the Container’s original contents;

6. Rate each Container as PASS or FAIL based upon the Contamination Threshold below; and,

7. Prepare and submit to City a report of the inspection which may include photographic findings. a. Contamination Thresholds . Prohibited Materials in Commercial Containers undergoing a Comprehensive Individual Inspection shall be evaluated based upon the Contamination Thresholds identified below:

Contamination Thresholds
Container Type % Contamination
Limit by Volume
GREEN (roll-off yard waste only)
GREEN (mixed organic)
BROWN
BLUE
GRAY
2%
10%
1%
20%
25%

Containers that exceed the percentage contamination limit shall be rated as FAIL.

After twelve-months, CITY and CONTRACTOR shall review the contamination thresholds and modify if warranted.
b. Limitation on Number of Enforcement Inspections. The Parties recognize that Enforcement Inspections require the use of limited resources and space and could detract from the overall outreach and education objective; therefore, the number of Enforcement Inspections shall be limited to not more than ten (10) per year with no more than two (2) such inspections performed in any thirty (30) day period.

If CITY requires additional inspections beyond those required to meet SB 1383 requirements, it may engage an independent party to perform those inspections.

F. ADDITIONAL SB 1383 REQUIREMENTS

1. Community Composting
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Palm Springs Draft Agreement Page 110
CONTRACTOR shall support any community compost program within CITY’s boundaries that is locally organized, operated by volunteers, properly sized and properly permitted in accordance with State requirements and the CITY Code by delivering sufficient quantities of food waste and/or mixed organic waste on demand within two (2) business days of the request, and at no charge to the community compost program or the CITY. CONTRACTOR offers no assurances as to the suitability of the material for use by the community composting program.

2. Recovered Organic Products
a. Recovered Organic Product Giveaway . In conjunction with the semi-annual Community Clean-Up Drop-Off Event, CONTRACTOR shall provide up to 40-cubic yards of bulk compost or bulk mulch and satisfy the requirements of 14 CCR Sections 18993.1 and 18993.2 for distribution to CITY Residents who shall be allowed to fill containers that they provide on a first-come, first serve basis at no cost. CONTRACTOR shall deliver any compost and/or mulch remaining after the event to a site designated by CITY for use by CITY. Beyond the provision of recovered organic product giveaway at clean -up drop -off events and reporting CONTRACTOR’S own recovered organic product usage, CONTRACTOR shall have no further obligation with regard to the CITY’S recovered organic procurement target of 14 CCR Section 18993.1(c).
b. Recovered Organic Product Usage. CONTRACTOR shall report to CITY any recovered organic products used by CONTRACTOR in its operation including bulk material or recovered biogas.

3. Edible Food Recovery Assistance
CITY shall have the primary role and responsibility to arrange, monitor and enforce participation in a Commercial Edible Food Recovery Program. CITY shall create and maintain a listing that classifies Commercial establishments. CONTRACTOR shall assist CITY with its Edible Food Recovery Program by reporting new Commercial customers and providing Commercial Customers with information about the program.
a. Classification of Commercial Customers. As a part of the Organic Waste Recycling Program enrollment phase commencing January 1, 2022, CONTRACTOR, working with the CITY, shall classify all new Commercial customers as a ‘Tier One’ or a ‘Tier Two’ Edible Food Generators. b. Initial Report. Within thirty (30) days of the Effective Date of the Agreement, CONTRACTOR shall provide CITY information regarding new Commercial customers classifying them as Tier One and Tier Two Commercial Edible Food Generators which shall include:
• Customer name
• Service address
• Contact information
• Tier One or Tier Two classification
• Type of business
c. Annual Report. Commencing December 1, 2022, and annually thereafter, CONTRACTOR shall provide CITY with an updated report identifying Tier One and Tier Two Commercial Ed ible Food Generators.
d. Education. At least once annually in its Commercial quarterly newsletter, CONTRACTOR shall provide Commercial Customers with information about:

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• City’s Edible Food Recovery Program
• Requirements of Commercial Edible Food Generators under the SB 1383 Regulations (14 CCR, Chapter 12, Article 10)
• Food Recovery Organizations and Food Recovery Services • Actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste
G. CALRECYCLE REPORTING
Annually, within ninety (90) days following the end of each calendar year, CONTRACTOR shall produce the following reports for CITY:

1. Mandated Recycling Programs
a. Commercial Establishments
• The number required to recycle
• The number participating in recycling
• The number exempt from recycling by reason
• The number not participating in recycling
• Description of problems encountered with recycling by Commercial establishments b. Multi-Family Dwellings
• The number required to recycle
• The number participating in recycling
• The number exempt from recycling by reason
• The number not participating in recycling
• Description of problems encountered with recycling by Multi-Family complexes

2. Mandated Organic Waste Recycling Programs
a. Commercial Establishments – Green Waste
• The number required to recycle green waste
• The number participating in green waste recycling
• The number exempted from green waste recycling by reason • The number not participating in green waste recycling • Description of problems encountered with green waste recycling by Commercial establishments
b. Commercial Establishment – Food Waste
• The number required to recycle food waste
• The number participating in food waste recycling
• The number exempted from food waste recycling by reason Item 3E - 192

Palm Springs Draft Agreement Page 112
• The number not participating in food waste recycling
• Description of problems encountered with food waste recycling by Commercial establishments
c. Commercial Establishment – Mixed Organic Waste
• The number required to recycle mixed organic waste
• The number participating in mixed organic waste recycling • The number exempted from mixed organic waste recycling by reason • The number not participating in mixed organic waste recycling • Description of problems encountered with mixed orga nic waste recycling by Commercial establishments
d. Multi-Family Complexes – Green Waste
• The number required to recycle green waste
• The number participating in green waste recycling
• The number exempt from green waste recycling by reason • The number not participating in green waste recycling • Description of problems encountered with green waste recycling by Multi -Family complexes
e. Multi-Family Complexes – Mixed Organic Waste
• The number required to recycle mixed organic waste
• The number participating in mixed organic waste recycling • The number exempt from mixed organic waste recycling by reason • The number not participating in mixed organic waste recycling • Description of problems encountered with mixed organic waste recycling by Multi- Family complexes

3. Summary
A summary of enrollment, outreach, monitoring/inspections performed

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Palm Springs Draft Agreement Page 113
EXHIBIT 4: LIST OF CITY FACILITIES
CITY facilities will be provided all services listed Article 5.11 at no charge exclusive of C&D Debris generated from the removal, construction, remodeling or refurbishing of a CITY facility or public works project.

Collections at CITY facilities will be scheduled at a time mutually agreed upon by the CONTRACTOR and the CIT Y.
• Airport
• Animal Shelter
• City Hall
• City Corporate Yard
• Library Center
• Parks and Recreation Facilities
o Leisure Center-Pavilion-Swim Center-Sunrise Park
o Desert Highland Unity Center
o Demuth Park and Community Center
o Gateway Park
o Ruth Hardy Park
o Palm Springs (Angel) Stadium
o Tahquitz Creek Golf Resort
o Dr. R. G. Frey/Jaycee Building
• Public Safety Facilities
o Police Department
o El Cielo Road Headquarters Fire Station 2
o Racquet Club Road Fire Station 3
o Indian Canyon Drive Fire Station 1
o La Verne Way Fire Station 4
o Bolero Road Fire Station 5
• Tourism Facilities
o Convention Center
o Plaza Theater
o Village Green
o Visitor Information Center
Notwithstanding the listing of the current facilities, it is expressly understood that the CITY may from time to time add or subtract from the foregoing facilities, provided that the new facilities are owned or leased by the CITY or its affiliated or subordinate agencies.

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Palm Springs Draft Agreement Page 114
EXHIBIT 5: LIST OF CITY EVENTS
CONTRACTOR shall provide all necessary refuse and recyclable collection and disposal /processing services at the following events subject to the limitations noted below. Service needs may change over time due to participation, duration of events, and implementation of new events or deletion of current events. CITY may supplement this list by giving written notice to the CONTRACTOR of an additional CITY -sponsored event at least two (2) weeks before the event. All one-time annual event service, including increasing service, shall be provided by CONTRACTOR at no additional charge.

On-Going Weekly Events:

1. VillageFest, Downtown corridor (CONTRACTOR’S service to this event is limited to providing Containers for use by the public. Collection services are provided by CITY forces.) Annual Events:

1. Festival of Lights Parade, Downtown corridor

2. Veteran’s Day Parade, Downtown corridor

3. July 4
th Celebration, Sunrise Park and Ruth Hardy Park

4. City Clean-ups, periodic events in unspecified Neighborhoods

5. Black History Parade and Festival, Downtown corridor and Frances Stevens Park

6. Pride Parade, Downtown corridor

7. Tour de Palm Springs, temporary route

8. Women Running Wild, temporary route

9. Palm Springs High School Homecoming Parade, Downtown corridor

10. Desert Aids Walk, Downtown corridor

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Palm Springs Draft Agreement Page 115
EXHIBIT 6: LIST OF DESIGNATED FACILITIES
Contractor designates the following Solid Waste Facilities for Solid Waste Collected in CITY.

1. Disposal Facilities
a. The Edom Hill Transfer Station (SWIS #33 -AA-0296), Cathedral City is the primary facility for the delivery and disposal of solid waste collected in the City. As of July 1, 2021, the Tip Fee at this facility is $56.01 per ton.

2. Mixed Recycling Facility
a. The Edom Hill Transfer Station (SWIS #33-AA-0296), Cathedral City is the primary facility for the delivery and diversion of source-separated mixed recycling. As of July 1, 2021, the Tip Fee at this facility is $91.64 per ton.

3. Green Waste Facility
a. The Edom Hill Transfer Station (SWIS #33 -AA-0296), Cathedral City is the primary facility for the delivery and diversion of mixed recycling. As of July 1, 2021, the Tip Fee at this facility is $51.49 per ton.

4. Organic Waste Facility
a. The Edom Hill Transfer Station (SWIS #33-AA-0296), Cathedral City is the primary facility for the delivery and diversion of source -separated food waste and c ommingled green waste and food waste. As of July 1, 2021, the Tip Fee at this facility $85. b. The Coachella Valley Compost (SWIS #33 -AA-0292), Coachella is a secondary facility for the delivery and diversion of source -separated food waste and commingled green waste and food waste. As of July 1, 2021, the Tip Fee at this facility is $75.00 per ton.

5. Metal and White Goods
a. SA Recycling (SWIS #33 -AA-0297), Thousand Palms is the primary facility for the delivery and diversion of metal and white goods. Tip fees at this facility vary by material type and market price.

6. Construction and Demolition Waste
a. Desert Recycling (SWIS #33-AA-0309), Thousand Palms is the primary facility for the delivery and diversion of construction and demolition waste. Tip Fees vary by material type.

7. Electronic Waste
a. Desert Arc (CEW #114349), Palm Desert is the primary facility for the delivery and diversion of construction and demolition waste. As of July 1, 2021 there is no tip fee at this facility.

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ATTACHMENT #4

Item 3E - 197

3002 Dow Ave., Suite 116 Tustin, CA 92780 866-241-4533 • [email protected] PSDS SB 1383 Rate Proposal Review
Analysis and Findings DRAFT
April 11, 2022

INTRODUCTION
This report provides an analysis and findings of Palm Springs Disposal Services’ (PSDS) rate proposal submitted February 1, 2022 for rate year July 1, 2022 through June 30, 2023.

In comparison to previous years, this year’s rate proposal consists of only rate schedules. In the past years, rate adjustment applications generally followed the procedure set out in the existing franchise agreement1 and included supporting documentation for changes in the costs of Material Handling fees.

Within the context of a proposed renegotiated franchise agreement and to facilitate including the costs for additional services required to comply with SB 1383, this approach seems reasonable and practical, and facilitates the transition to the new rate adjustment procedure proposed under the renegotiated franchise agreement.

PSDS’s Rate Proposal
PSDS’s rate proposal consists of rate schedules for residential, commercial, and industrial sector services. For residential services, PSDS proposes establishing a base rate for basic service with separate charges for services that may be required or preferred by only some of the customers. PSDS submitted three rate schedules. Option One, the Primary Option, is in response to the City requests for rates to provide the updated scope of work consisting primarily of services to comply with SB 1383. Options Two and Three are unsolicited options that offer reduced residential rates in exchange of extending the term of the agreement.

Approach
Because the rate schedules consist of over twenty separate rates for residential services and almost 90 rates for commercial services, comparing changes in individual rates does not provide a meaningful way to determine the financial impact of the proposed rate changes. Instead SVM has taken the approach of comparing the total rate revenue requirement for the proposed year with the previous year.

Accordingly, SVM performed a rate revenue projection for the current rate year ending June 30, 2022, based on the currently approved rates and the number of subscribers for each rate category. The current rates, which became effective January 1, 2022, included a surcharge for an extraordinary rate adjustment and an additional surcharge for correcting the delayed approval of the annual adjustment.

The revenue projections for the current year are based on the approved rates without the surcharges.

1 The proposed updated franchise agreement streamlines the annual rate adjustment.

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Likewise, SVM projected the rate revenue for rate year ending June 30, 2023 using PSDS’s proposed rate schedule and the number of current subscribers for each rate category.

Rate Revenue Based on Proposed Rate Schedules
The results of the rate revenue projections are presented in Table 1. For the current rate year ending June 2022, PSDS can expect to receive $12.1M from the commercial and residential sectors. In comparison, the PSDS’s proposed rates for July 2022 are projected at $15.1M. In total, PSDS is requesting an additional $2.9M in rate revenue which represents an average increase of 24.3% over the previous year. It should be noted that rate revenue from the industrial sector is not included in this analysis.2.

Table 1 – Rate Revenue Comparison Current RY 2021/22 vs Proposed RY 2022/23

Note: Revenue Requirement projections do not include revenue from the industrial sector (debris box services).

Rate Revenue Based on SB 1383 Budget
Separately, PSDS submitted a budget detailing the additional costs to provide the new services required by SB 1383. PSDS also noted that their proposed rate schedule includes a CPI adjustment to the service component of the rates to reflect the annual rate adjustment provided for in the current franchise agreement.

To better assess PSDS’s proposed rate schedule, SVM also performed a rate revenue projection by adjusting the current year rate revenue by the CPI factors used by PSDS3 and adding the costs identified in their proposed SB 1383 Budget.

As presented in Table 2, PSDS requires an additional $2.6M in rate revenue to adjust current rates for inflation and to provide for the costs of providing SB 1383 services. Using this approach, PSDS would require total rate revenue of $14.8M for an average increase of 21.7%.

2 The industrial sector (debris boxes) was excluded from this analysis because 1) those services seasonally fluctuate and 2) these services are charged on a per use basis.
3 PSDS used an average CPI factor of 5.892% derived by calculating the change from February through December 2021. This factor was then multiplied by a service component percentage weight yielding 4.584% for the residential sector and 4.449% for the commercial sector.

Sector
Rate Revenue
Projection
2021/2022
Rate Revenue
Projected
2022/2023
Rate Revenue
Required
Adjustment
% Revenue
Adjustment
Residential $5,469,221 $7,103,589 $1,634,368 29.9%
Commercial $6,661,700 $7,972,949 $1,311,250 19.7%
Total Revenue Requirement $12,130,921 $15,076,538 $2,945,618 24.3% Item 3E - 199
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Table 2 – Rate Revenue Requirement Based on CPI & SB 1383 Budget4

These results indicate that the proposed rates in PSDS’s rate schedules will generate $15.1M in rate revenue. In comparison, adjusting current rate revenue by CPI and adding the costs identified in the SB 1383 budget produces a revenue requirement of $14.8M.

As provided in Table 3, the different rate revenue requirements between these two approches indicates that the rate proposal would genrate a revenue overage of $312,904 and indicates that PSDS could reduce their proposed rates by an average of 2.1%.

Table 3 – Rate Revenue Requirement Comparison

Rate Options For The Residential Sector
PSDS also included two additional rate proposals offering residential rates lower than the Primary option (Option One) in exchange for extensions of the agreement term. Although the rates year 1 are lower than the Primary option, the rates are ramped up over year 1 and 2 under Option 1 and over five years under Option 2. For all options, the rates are separately subject to the annual rate adjustment beginning in year 2.

The rate revenue projections are presented in Table 4. Also included are the cumulative revenue for a five-year period, the percent annual increase structured into the rate schedules, and the percentage reduction in rate revenue as compared to the Primary Option.

4 The $2.1M revenue requirement for SB 1383 includes an adjustment to PSDS’s revenue requirement to correct for the calculation of franchise fees.

Sector
Rate Revenue
Projection
2021/2022

CPI ADJ
Rate Year
2022/2023 SB 1383 Budget
Total
Revenue
Adjustment
Rate Revenue
Projection
2022/2023
% Revenue
Adjustment
Residential $5,469,221 252,731 $1,775,404 2,028,135 7,497,356 37.1% Commercial $6,661,700 298,769 $305,809 604,578 7,266,278 9.1% Total Revenue Requirement $12,130,921 $551,500 $2,081,213 $2,632,713 $14,763,634 21.7% Sector
Projected Revenue
( Prposed Rate
Schedules)
Projected Revenue
(CPI & SB 1383 Costs) Difference % Difference
Residential $7,103,589 7,497,356 $393,767 5.5% Commercial $7,972,949 7,266,278 -$706,671 -8.9% Total Revenue Requirement $15,076,538 $14,763,634 -$312,904 -2.1% Item 3E - 200
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Option 2
The rates proposed under Option 2 represent a 4.9% reduction in rate revenue in year one as compared to the Primary Option. In year two, the rates are programmed to increase by an average of 4.1% resulting in a cumulative rate revenue reduction of 2.9%. Over a five-year period, Option 2 offers a cumulative rate reduction of 1.8%. In exchange, PSDS is requesting a three year and three months extension of the agreement term.

Option 3
The rates proposed under Option 3 represent a 9.1% reduction in rate revenue in year one as compared to the primary option. The rates are programmed to increase by an average of 2.3% in year 2, 2.1% in year 3, 1.1% in year 4 and 4.2% in year 5. Over the five-year period, Option 3 offers a cumulative rate reduction of 5.0%. In exchange, PSDS is requesting an eight year and three months extension of the agreement term.

Table 4 – Revenue Requirement Option Comparison

Options Year 1
2022/23
Year 2
2023/24
Year 3
2024/25
Year 4
2025/26
Year 5
2026/27
Option 1
Annual Revenue $7,103,589 $7,103,589 $7,103,589 $7,103,589 $7,103,589 Cumulative Revenue $7,103,589 $14,207,178 $21,310,767 $28,414,356 $35,517,945 Option 2
Annual Revenue $6,755,676 $7,032,818 $7,032,818 $7,032,818 $7,032,818 Annual % Increase 4.1% 0.0% 0.0% 0.0%
Cumulative Revenue $6,755,676 $13,788,494 $20,821,313 $27,854,131 $34,886,950 Percent Reduction from
Option 1 4.9% 2.9% 2.3% 2.0% 1.8%
Option 3
Annual Revenue $6,459,290 $6,607,265 $6,748,268 $6,820,445 $7,103,589 Annual % Increase 2.3% 2.1% 1.1% 4.2%
Cumulative Revenue $6,459,290 $13,066,555 $19,814,823 $26,635,269 $33,738,858 Percent Reduction from
Option 1 9.1% 8.0% 7.0% 6.3% 5.0%
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Other Considerations
PSDS SB 1383 Budget
The above analysis assumes the proposed SB 1383 budget as prepared by PSDS. SVM’s opinion is that the PSDS proposed budget reasonably reflects the costs to provide the new services required for SB 1383. However, SVM notes that PSDS includes a 25% markup to allow for G&A/Profit. While the profit allowance is considered appropriate, SVM questions the validity of including a G&A component to the budget. A G&A percentage markup is appropriate to account for expenses that are spread out through the organization and generally difficult to itemize. However, the PSDS budget very specifically includes cost allowances these types of expenses such administrative staffing, payroll burden, uniform expense, PPE expense, IT support, dues and subscriptions, educational materials, etc.

On this basis, it is our opinion that the percentage markup could be reduced from 25% to 10% to eliminate the G&A portion but retain a 10% markup for profit allowance.

Comprehensive Inspections.

The rate schedule includes a rate for an hourly rate of $138.19 for Comprehensive Inspections to be paid by commercial customers. SVM recommends eliminating this fee as the personnel and needed resources are identified in the SB 1383 budget and will be funded by the required rate increase.

Conclusions
SB 1383 is considered the most comprehensive environmental law passed in California in since AB 939.

Cities across California are having to consider rate adjustments of 20% to 30% to fund the services the required services. With this perspective, SVM finds that PSDS’s rate proposal with a 24.3% increase in rate revenue is within the expected range to fund SB 1383 services.

However, based on our analysis of PSDS’s budget, SVM has found that PSDS could lower the proposed rates a minimum of 2.1% and expect to generate sufficient rate revenue to meet its obligations under the franchise agreement.

Regarding Options Two and Three, SVM presented an analysis of those options to allow the City to decide if these options are appropriate for its ratepayers. We highlight that an extension of a franchise agreements is valuable to the franchisee. PSDS’s options with term extensions were unsolicited. Because the City was not seeking a term extension, the City has not attempted to negotiate a maximum value in exchange for a term extension. Hence it is unknown how much more, if any, PSDS is willing to concede for the term extensions. Another consideration regarding term extensions is that the only sure way to validate that service rates are reasonable is by soliciting proposal through a procurement process. By extending the term, the City also pushes out the option to potentially benefit from a procurement process.

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ATTACHMENT #5

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CITY OF PALM SPRINGS

NOTICE OF PUBLIC HEARING

REGARDING PROPOSED INCREASES TO

SOLID WASTE SERVICES RATES

You are receiving this notice because you are a property/record owner or tenant who is responsible for paying for solid waste services in Palm Springs, California.

NOTICE IS HEREBY GIVEN that the City of Palm Springs (the “City”) will hold a Public Hearing on September 1, 2022, at 5:30 p.m. to consider adopting increases to the rates fo r collection and handling of solid waste within the City (collectively, “Solid Waste Services”). The meeting will be conducted pursuant to AB 361 (Chapter 165, Statutes of 2021). The public hearing will be held in the City Council Chambers located at 3200 E. Tahquitz Canyon Way, Palm Springs CA 92262 and online at www.palmspringsca.gov/pstv. To call into the hearing (audio only), dial (760) 323-8204.

Persons wishing to address the Council remotely may submit written comments or speak.

To submit written comments, please email the City Clerk at [email protected] before 5:30 p.m. on September 1,2022 and your comments will be distributed to Council and retained for the official record.

If you would like to speak at the public hearing, call the City Clerk's Office at (760) 323-8204 to be added to the public comment queue. Each speaker will be allowed to speak for up to two minutes.

If you have any questions or would like to confirm participation options, please contact the City Clerk’s office at [email protected] or (760) 323-8204.

The purpose of the public hearing is to consider all oral testimony and written protests to, and the adoption of, the proposed rates. This 45-day notice is hereby given in accordance with Section 6(a) of Article XIII D of the California Constitution.

Proposed Rate Increases

Palm Springs Disposal Services (“PSDS”) provides Solid Waste Services within the City pursuant to an exclusive franchise agreement. PSDS bills the customers directly for the services. Solid waste rates are evaluated periodically to maintain an adequate rate structure to fund the costs of providing Solid Waste Services to residents and commercial businesses.

The rate structure for monthly Solid Waste Service fees has three customer classes: (i) residential (ii) commercial and iii) industrial. The rates for Solid Waste Services imposed on each customer class are determined on the basis of (i) the size of the container (in gallons), or bin or cart (in cubic yards) serving the property; (ii) the type of container (e.g., solid waste, recycling, or green/organic waste) serving the property; and (iii) the frequency of pickups per week. The rate structure is comprised of service fees and material tipping fees.

The proposed rate increases for Solid Waste Services are necessary for PSDS to provide mandatory organic waste collection services pursuant to regulations implementing Senate Bill 1383 (Chapter 395, Statutes of 2016). The proposed rates are calculated to recover the costs of providing weekly organic waste collection services, outreach, education, monitoring, reporting and container labeling to comply with the SB 1383 regulations, and to proportionately allocate those costs on a parcel basis among various c ustomer classes. The rates to be imposed are set forth in Exhibit A of this Notice. Because each customer may have a unique combination of services, please look at a recent bill to determine what services you have and use the table in Exhibit A to determinate how your rates may be impacted.

Item 3E - 204
Annual Adjustment
The proposed maximum rates for Solid Waste Services shall be adjusted annually to account for inflation and increases in disposal fees. Beginning July 1, 2023, and each July 1 thereafter, through and including July 1, 2026, the disposal component and service component may be adjusted based on inflationary/fee changes below multiplied by the component’s assigned percentage weighting as specified in the franchise agreement, to calculate the rate change.

• Change to Material Tip Fee Component. The change in tip fees charged by the solid waste facilities that receive and process waste generated in Palm Springs (“Tipping Fees”). • Change to Service Component. The twelve-month average change in the previous calendar year in the Consumer Price Index for All Urban Consumers for Riverside-San Bernardino-Ontario, CA Are (CPI) year.

Public Hearing and Protests

Any property owner whose property is to be subject to the proposed increases to the rates for the solid waste service fees and any tenant directly responsible for the payment of such fees (i.e., a customer of record) may submit a written protest to the proposed rate increases; provided, however, only one prot est will be counted per identified parcel. Any written protest must:
(1) state that the identified property owner or tenant is in opposition to the proposed rate increases; (2) provide the location of the identified parcel (by assessor’s parcel number or street address); and (3) include the name and signature of the property owner or tenant submitting the protest.

If the person submitting the written protest is the owner of record but was not shown on Riverside County’s last equalized assessment roll as the property owner, that person must provide written evidence that the person is the property owner. Written protests may be submitted by mail or in person to the City Clerk ’s Office at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262, provided they are received prior to the conclusion of the public comment portion of the Public Hearing. If submitting your protest by mail, please provide sufficient time for it to arrive prior to the close of the public comment portion of the public hearing.

Any protest submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the City Clerk, Attn: Public Hearing on Rate Increases.

The City Council will consider all written protests and hear and consider all oral comments to the proposed rate increases for Solid Waste Services and the annual rate adjustment at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest.

Upon the conclusion of the Public Hearing, the City Council will consider adoption of the rate increases to the Solid Waste Services and the annual rate adjustment as described herein. If written protests against the proposed Solid Waste Services and annual rate adjustment are not presented by a majority of the property owners of the identified parcels upon which the rates are proposed to be imposed and tenants directly responsible for the payment of the solid waste service fees, the City Council will be authorized to impose the Solid Waste Services and annual rate adjustment as outlined above. If adopted, the proposed rate increases will take effect beginning Oct ober 1, 2022. The City is conducting this Proposition 218 majority protest proceeding out of an abundance of caution and without conceding the applicability of Proposition 218 to Solid Waste Services.

Questions

If you have questions regarding this notice or how your rates will be affected, please go to www.yoursustainablecity.com. The website has more information and examples of rate adjustments for typical customers. You can also call (760) 323-8248 or email [email protected].

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CIUDAD DE PALM SPRINGS
AVISO DE AUDIENCIA PÚBLICA

CON RESPECTO A LOS AUMENTOS PROPUESTOS
A LAS TARIFAS DE SERVICIOS DE RESIDUOS SÓLIDOS

Usted está recibiendo este aviso porque usted es un propietario o inquilino de la propiedad / registro que es responsable de pagar por los servicios de desechos sólidos en Palm Springs, California.

POR LA PRESENTE SE NOTIFICA que la Ciudad de Palm Springs (la “Ciudad”) celebrará una Audiencia Pública el 1 de septiembre de 2022, a las 5:30 p.m. para considerar la adopción de aumentos a las tarifas de recolección y gestión de desechos sólidos dentro de la Ciudad (colectivamente, “Servicios de Desechos Sólidos”). La reunión se llevará a cabo de conformidad con AB 361 (Capítulo 165, Estatutos de 2021 . La audiencia pública se llevará a cabo en las Cámaras del Concejo Municipal ubicadas en 3200 E. Tahquitz Canyon Way, Palm Springs CA 92262 y en línea en www.palmspringsca.gov/pstv. Para llamar a la audienci a (solo audio), marque (760) 323-8204.

Las personas que deseen dirigirse al Consejo de forma remota pueden presentar comentarios por escrito o hacer uso de la palabra.

Para enviar comentarios por escrito, envíe un correo electrónico al Secretario de la Ciudad a [email protected] antes de las 5:30 p.m. del 1 de septiembre de 2022 y sus comentarios se distribuirán al Concejo y se conservarán para el registro oficial. Si desea hablar en la audiencia pública, llame a la Oficina del Secretario de la Ciudad al (760) 323 -8204 para ser a ñadido a la cola de comentarios públicos.

Cada orador podrá hacer uso de la palabra durante un tiempo de hasta dos minutos.

Si tiene alguna pregunta o desea confirmar las opciones de participación, por favor comuníquese con la oficina del Secretario de la Ciudad a [email protected] o al (760) 323-8204.

El propósito de la audiencia pública es considerar todos los testimonios orales y protestas escritas contra las tarifas propuestas y su adopción. Este aviso de 45 días se da por la presente de conformidad con la Sección 6(a) del Artículo XIII D de la Constitución de California.

Aumentos de tarifas propuestos

El Servicio de Eliminación de Residuos de Palm Springs (“PSDS”, por sus siglas en inglés ) p roporciona Servicios de Desechos Sólidos dentro de la Ciudad de conformidad con un acuerdo de franquicia exclusiva. El PSDS factura a los clientes directamente por los servicios. Las tasas de desechos sólidos se evalúan periódicamente para mantener una estructura de tarifas adecuada para financiar los costos de proporc ionar servicios de desechos sólidos a residentes y empresas comerciales.

La estructura de tarifas para las tarifas mensuales del Servicio de Residuos Sólidos tiene tres clases de clientes:
(i) residencial (ii) comercial y iii) industrial. Las tarifas para los Servicios de Residuos Sólidos impuestas a cada clase de cliente se determinan sobre la base de (i) el tamaño del contenedor (en galones), o contenedor o carro (en yardas cúbicas) que sirve a la propiedad; (ii) el tipo de contenedor (por ej emplo, residuos sólidos, reciclaje o residuos verdes/orgánicos) que sirve a la propiedad; y (iii) la frecuencia de las recogidas por semana. La estructura de tarifas se compone de tarifas de servicio y tarifas de propinas de materiales.

Los aumentos de ta rifas propuestos para los Servicios de Desechos Sólidos son necesarios para que PSDS brinde servicios obligatorios de recolección de desechos orgánicos de conformidad con las regulaciones que implementan el Proyecto de Ley del Senado 1383 (Capítulo 395, Estatutos de 2016). Las tarifas propuestas se calculan para recuperar los costos de proporcionar servicios semanales de recolección de desechos orgánicos, divulgación, educación, monitoreo, informes y etiquetado de contenedores para cumplir con las regulacio nes SB 1383, y para asignar proporcionalmente esos costos en forma de paquetería entre varias clases de clientes.

Las tasas que se impondrán se establecen en el Anexo A de este Aviso. Debido a que cada cliente puede tener una combinación única de servicios, consulte una factura reciente para determinar qué servicios tiene y use la tabla en el Anexo A para determinar cómo sus tarifas pueden verse afectadas.

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Ajuste anual
Las tarifas máximas propuestas para los servicios de residuos sólidos se ajustarán anualmente para tener en cuenta la inflación y los aumentos en las tarifas de eliminación. A partir del 1 de julio de 2023, y cada 1 de julio a partir de entonces, hasta el 1 de julio de 2026 inclusive, el componente de eliminación y el componen te de servicio pueden ajustarse en función de los cambios inflacionarios / de tarifas por debajo multiplicados por la ponderación porcentual asignada del componente según lo especificado en el acuerdo de franquicia, para calcular el cambio de tarifa.

• Cambio al componente de tarifa de propina de material. El cambio en las tarifas de propina cobradas por las instalaciones de desechos sólidos que reciben y procesan los desechos generados en Palm Springs ("Tarifas de propina").
• Cambio a componente de servicio. El cambio promedio de doce meses en el año calendario anterior en el Índice de Precios al Consumidor para Todos los Consumidores Urbanos para Riverside-San Bernardino-Ontario, CA Son (CPI) año.

Audiencia pública y protestas

Cualquier propietario cuya propiedad esté sujeta a los aumentos propuestos a las tarifas de las tasas de servicio de desechos sólidos y cualquier inquilino directamente responsable del pago de dichas tarifas (es decir, un cliente registrado) puede presentar una protesta por escrito a los aumentos de tarifas propuestos; sin embargo, solo se contará una protesta por parcela identificada. Cualquier protesta por escrito debe:
(1) declarar que el propietario o inquilino identificado se opone a los aumentos de tarifa propuestos; (2) proporcionar la ubicación de la parcela identificada (por el número de parcela del tasador o la dirección postal); y
(3) incluir el nombre y la firma del propietario o inquilino que presenta la protesta.

Si la persona que presenta la protesta por escrit o es el propietario de registro, pero no se mostró en la última lista de tasación ajustada del Condado de Riverside como propietario de la propiedad, esa persona debe proporcionar evidencia por escrito de que la persona es el propietario de la propiedad. Las protestas por escrito pueden presentarse por correo o en persona a la Oficina del Secretario de la Ciudad en 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262, siempre que se reciban antes de la conclusión de la parte de comentarios públicos de la Au diencia Pública. Si envía su protesta por correo, por favor proporcione tiempo suficiente para que llegue antes del cierre de la parte de comentarios públicos de la audiencia pública. No se aceptará ninguna protesta presentada por correo electrónico u otros medios electrónicos. Por favor, escriba en el frente del sobre para cualquier protesta, ya sea enviada por correo o presentada en persona al Secretario de la Ciudad, Attn: Audiencia Pública sobre Aumentos de Tarifas.

El Concejo Municipal considerará todas las protestas escritas y escuchará y considerará todos los comentarios orales a los aumentos de tarifas propuestos para los Servicios de Desechos Sólidos y el ajuste anual de tarifas en la Audiencia Pública. Los comentarios orales en la Audiencia Pública no calificarán como protestas formales a menos que vayan acompañados de una protesta por escrito. Al concluir la Audiencia Pública, el Concejo Municipal considerará la adopción de los aumentos de tarifas a los Servicios de Residuos Sólidos y el ajuste anual de tarifas como se describe en este documento. Si las protestas por escrito contra los Servicios de Residuos Sólidos propuestos y el ajuste anual de tarifas no son presentados por la mayoría de los propietarios de las parcelas identificadas a las que se propone imponer las tarifas y los inquilinos directamente responsables del pago de las tarifas de servicio de residuos sólidos, el Ayuntamiento estará autorizado a imponer los Servicios de Residuos Sólidos y el ajuste anual de tarifas como se describe anteriormente. Si se adoptan, los aumentos de tarifas propuestos entrarán en vigencia a partir del 1 de octubre de 2022. La Ciudad está llevando a cabo esta protesta mayoritaria de la Proposición 218 por precaución y sin conceder la aplicabilidad de la Proposición 218 a los Servicios de Residuos Sólidos.

Preguntas

Si tiene preguntas sobre este aviso o sobre cómo se verán afectadas sus tarifas, por favor vaya a www.yoursustainablecity.com. El sitio web tiene más información y ejemplos de ajustes de tarifas para clientes típicos. También puedes llamar al (760) 323-8248 o envíe un correo electrónico a [email protected].

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ATTACHMENT #6
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Due to the length of the document,
the 2013 Executed Franchise Agreement between the City of Palm Springs and Palm Springs Disposal Service is available at the following link on the City website for reference purposes:

PSDS Franchise Agreement (palmspringsca.gov)
Item 3E - 209

Palm Springs City CouncilMay 26, 2022

Palm Springs City Council
May 26, 2022