For Rate Years Eleven (2021) through the remaining Rate Years in the Term, the Charges for additional services specified in Attachment Q shall be adjusted annually in accordance with Attachment K.
The Charges for additional services for Rate Year Ten (2020) shall be the Charges for Rate Year Ten (2020) as determined under the 2009 Franchise Agreement. These are the Charges that will be adjusted as provided in Attachment K of this Agreement to determine the Charges for Rate Year Fourteen (2024).
Two additional services are included in this Attachment Q that were not in Attachment Q of the 2009 Franchise Agreement. The two new services are Container Relocation Service and Agency- Specific Reporting for Abandoned Waste Collections. Charges for these services are presented in the table below.
Service Reference Agency-Approved
Charge Description
Additional Services for Customers
1 Single-Family Dwelling
Backyard Collection
Service Section
5.02.A
See Charges in the
table at the end of
this Attachment
See Charges in the table at the
end of this Attachment
2 Long Distance Service for
MFD, Mixed Use, and
Commercial Accounts
(Note: only applicable to
Containers with wheels)
Sections
5.02.B,
5.02.C; and
8.02.B
A – 10% of base
monthly Rate of the
Collection Rate for
each Container
requiring Long
Distance Service
B – 25% of base
monthly Rate of the
Collection Rate for
each Container
requiring Long
Distance Service
A – Distance greater than 50
feet and less than or equal to
100 feet
B – Distance greater than 100
feet
Distance shall be measured
from the face of the curb, or from
the edge of the roadway nearest
the closest edge of the
Container, if there is no curb.
10.b
September 25, 2023
Packet Pg. 300
ATTACHMENT Q
ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County City of San Carlos
Attachment Q
Additional Services
Service Reference Agency-Approved
Charge Description
3 Container Relocation
Service
Sections
5.02B and
8.02B
A – 12% of base
monthly Rate of the
Collection Rate for
each Container
requiring Container
Relocation Service
B – 27% of base
monthly Rate of the
Collection Rate for
each Container
requiring Container
Relocation Service
A – Distance greater than 50
feet and less than or equal to
100 feet
B – Distance greater than 100
feet
Distance shall be measured
from the face of the curb, or from
the edge of the roadway nearest
the closest edge of the
Container, if there is no curb.
4 On-Call Pick-up for SFD,
MFD, Mixed Use, and
Commercial Customers
Sections
5.02.A,
5.02.B, and
5.02.C
25% of the base
monthly Rate for
the size of
Container
Collected once per
week
Per Collection event per
Container for Collection
requested by Customer
5 Return Trip (SFD, MFD,
Mixed Use, or
Commercial)
Sections
5.02.A, B, C;
5.03.A, B, C;
5.04.A, B, C
$20.01 for SFD
$20.01 for
Commercial, Mixed
Use, and MFD
Per Collection event (i.e.,
request to return and provide
Collection service after the
Customer failed to properly set
out their Container(s) for
regularly scheduled Collection)
6 Additional Targeted
Recyclable Materials or
Organic Materials Cart
Service for SFD
Sections
5.03.A and
5.04.A
$4.05 per
Recycling Cart
$4.05 per Organic
Materials Cart
Per Cart per month (any Cart
size). Six month minimum
charge required. Includes one-
time Cart delivery upon start of
service and removal of Cart
when service is discontinued by
Customer.
7 Additional On-Call Bulky
Item Collection
Sections
5.05, 5.06 $108.47
Per Bulky Item Collection event
(in addition to the events
provided at no charge to
Customer pursuant to Section
5.12)
10.b
September 25, 2023
Packet Pg. 301
ATTACHMENT Q
ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County City of San Carlos
Attachment Q
Additional Services
Service Reference Agency-Approved
Charge Description
8 Collect Contaminated
Targeted Recyclable
Materials or Organic
Materials Container
Section
6.03.A and
8.02.F
25% of the base
monthly Solid
Waste Rate for the
size of Container
Collected once per
week
plus
Return Trip Fee if
applicable
Per Collection event for
Container with Contamination
Level greater than the maximum
level pursuant to Table 1 in
Section 6.02.B
9 Lock Service (Key Service) Section
8.02.B
A – $11.48 per
usage
B – $15.23 per
usage
Monthly cost:
A – Residential Customers
B – Commercial Customers
10 Lock Purchase Section
8.02.B $22.61 per lock Per lock
11 Overage Service Section
8.02.G
100% of the base
monthly Solid
Waste Collection
Rate
Per Collection event (after the
first two events)
12 Overage Bags Cost Section
8.02.G
50% of the base
monthly Solid
Waste Collection
Rate or $10.01
minimum
Per bag
13 Container Cleaning
Service
Section
8.05.D
A – $66.50
B – $113.06
A – per Cart
B – per Bin or Drop-Box
Charge only applies to cleaning
or Container exchange in
addition to the service to be
provided at no charge to the
Customer pursuant to Section
8.05.D
10.b
September 25, 2023
Packet Pg. 302
ATTACHMENT Q
ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County City of San Carlos
Attachment Q
Additional Services
Service Reference Agency-Approved
Charge Description
14 Dirty Cart Replacement
(Exchange) Service
Section
8.05.D
A – $81.38
B – $93.91
C – $106.43
A – per 32 gallon Cart
B – per 64 gallon Cart
C – per 96 gallon Cart
Charge only applies to cleaning
or Container exchange in
addition to the service to be
provided at no charge to the
Customer pursuant to Section
8.05.D
Additional Services for Agency
15 Additional Confidential
Document Destruction
Service Event
Section 5.07 $1,502.65 Per event
16 Additional Compost
Material Delivery Section 5.11
A – $156.53 per
delivery
B – $313.06 per
delivery
A – “one-way” only delivery by
Contractor where Contractor
delivers to and unloads compost
at an Agency-approved location
B – “Round-trip” delivery by
Contractor where Contractor
delivers compost in a Drop Box
to an Agency-approved location
and returns at a later time or
date to pick up the Drop Box and
any remaining compost (charge
includes the delivery of and later
pick-up of the Drop Box)
17 Community Drop-Off
Events Section 5.13 $21,287.57 per
event or day
Per event or day targeting 5,000
households. Does not include
disposal or public education
expenses.
18 Collection for Agency-
Sponsored and Non-
Agency sponsored
Community Events
Section 5.08
A – $3,756.63
B – $6,261.04
C – $9,391.57
A – One day event with a
projected 2,500 or fewer
attendees
B – One (1) or two (2) day
events with a projected 2,501 to
7,500 attendees per day
C – One (1) or two (2) day
events with a projected 7,501 to
10,000 attendees per day
10.b
September 25, 2023
Packet Pg. 303
ATTACHMENT Q
ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County City of San Carlos
Attachment Q
Additional Services
Backyard Collection Service Charge
for Single-Family Dwellings*
(Section 5.02.A)
Distance from Curb**
Backyard
Charge for
Customers
with One (1)
Solid Waste
Cart
Backyard
Charge for
Customers with
Two (2) Solid
Waste Carts
Backyard
Charge for
Customers with
Three (3) Solid
Waste Carts
Backyard
Charge for
Customers
with Four (4)
Solid Waste
Carts
Distance <= 50 feet $24.79 $39.56 $79.12 $118.68
50 < Distance <= 100 feet $28.94 $43.70 $83.24 $122.82
100 < Distance <= 150 feet $33.05 $47.83 $87.39 $126.95 150 < Distance <= 200 feet $37.19 $51.97 $91.52 $131.07 200 < Distance <= 250 feet $41.32 $56.09 $95.65 $135.21 250 < Distance <= 300 feet $45.44 $60.20 $99.78 $139.34 300 < Distance <= 350 feet $49.59 $64.35 $103.91 $143.48 Each additional 50 foot
increment over 350 feet
Amount equals the difference
between the Charge for 250 to 300 feet and 300 to 350 feet * Backyard Collection Service Charges are charges added to the base monthly Rate for Single-Family Collection service and cover the provision of Backyard Collection Service for all of Customer’s Solid Waste, Recyclable Materials, and Organic Materials Carts.
** Distance shall be measured from the face of the curb, or from the edge of the roadway nearest the closest edge of the Cart, if there is no curb.
10.b
September 25, 2023
Packet Pg. 304
City of San Carlos
Solid Waste Rate Projections
Draft 9/19/23
10.b
September 25, 2023
Packet Pg. 305
2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel: 510 653 3399
www.bartlewells.com
DATE:
TO:
September 19, 2023
Anna Denham & Vatsal Patel
City of San Carlos
FROM:
RE:
Alex Handlers & Erik Helgeson
Bartle Wells Associates
Solid Waste Rate Projections
Solid Waste Utility
The City of San Carlos provides solid waste, green waste, and recycling services to residents and businesses within the City. The City is a member of the South Bay Waste Management Authority (SBWMA), also known as RethinkWaste, a joint powers authority comprised of 11 public agencies in San Mateo County for the purposes of collectively managing, operating and negotiating cost-effective waste reduction, recycling, and solid waste programs for its member agencies. SBWMA member agencies contract with Recology of San Mateo County (formerly Norcal Waste Systems Inc.) for the collection, hauling, and disposal of garbage, compost, and recycling.
The City’s solid waste utility is a self-supporting enterprise funded entirely from solid waste rates. As such, rates need to be adopted at adequate levels to support the costs of providing the City’s contractual solid waste hauling and disposal expenses.
The City has provided good financial stewardship of its solid waste enterprise with adoption of gradual annual solid waste rate increases over each of the past 7 years. These increases have put the solid waste enterprise on a stronger financial footing, helped keep rates aligned with the escalating costs of providing service, and enabled the City to avoid larger rate spikes in response to annual fluctuations in solid waste operating expenses. The City most recently adopted 3 years of 6% annual solid waste rate increases with the last increase effective January 1, 2023.
Solid Waste Rates
The City establishes solid waste rates for different types of residential and commercial services. Rates are established by resolution of the City Council pursuant to the procedural requirements of Proposition 218. The City sets the rates but contracts with Recology for billing and collection. Recology bills the City’s customers quarterly for solid waste service.
Single family residential rates vary by four cart sizes, ranging from 20 gallons to 96 gallons, with lower rates for smaller cart sizes. Most of the City’s residential customers have 32-gallon carts. Standard residential service
10.b
September 25, 2023
Packet Pg. 306
includes weekly collection of solid waste and recyclables. Commercial rates, including multi-family residential service, vary by type and frequency of service.
Projected Cost Increases
The City’s contractual costs for the provision of solid waste services are significantly increasing in 2024 due to a number of factors as summarized below.
Increased Solid Waste Disposal Costs at the Ox Mountain Landfill: Costs for solid waste disposal at the Ox Mountain Landfill are substantially increasing. These costs get passed on to all SBWMA member agencies including San Carlos and are reflected in SBWMA’s 2024 Budget.
New Shoreway Environmental Center Contract: SBWMA’s existing contract for operations of the Shoreway Environment Center terminates at the end of 2023. The existing contract operator has indicated for a number of years that additional cost recovery would be needed to maintain service levels.
SBWMA competitively bid out a new contract and selected a new contract operator. As expected, the new contract that starts in 2024 includes significant cost increases for facility operations and regulatory compliance.
Contractual Cost Increases for Recology: Costs for solid waste hauling services are projected to increase by more than 7% in 2024 based on SBWMA’s contract with Recology.
New Bay Area Air Quality Management District Regulations: SBWMA’s 2024 Budget includes additional cost recovery for mitigation efforts to reduce methane emissions in order to comply with new air quality regulations. Additional costs for compliance may be needed in future years depending on the level of capital investment needed.
Green Waste Disposal: One of SBWMA’s two contracts for green waste disposal was recently renegotiated resulting in an increase in disposal costs which are factored in to SBWMA’s 2024 Budget.
Contractual Cost Escalation & Future Costs for Regulatory Compliance: In addition to the increased funding requirements identified above, SBWMA anticipates additional cost increases in upcoming years including contractual cost increases for solid waste hauling by Recology, operations at the Shoreway Environmental Center, and additional costs for regulatory compliance. To account for these anticipated cost increases, the financial projections include 5% cost escalation in 2025 and 2026, 4% cost escalation in 2027, and 3.5% annual cost escalation in future years.
The City’s proactive rate increases in recent years have enabled the City to avoid the need for correspondingly large rate increases in 2024 and put the City in position to continue its practice of implementing gradual annual rate increases to keep rates aligned with the cost of providing service.
10.b
September 25, 2023
Packet Pg. 307
Solid Waste Financial & Rate Projections
Bartle Wells Associates (BWA) developed solid waste cash flow and rate projections under 2 scenarios:
A – Continue the City’s historical practice of implementing gradual annual rate increases each year.
B – Adopt no rate increase in 2024 coupled with slightly larger rate increases in subsequent years.
The following table compares the rate increases projected for each scenario along with an estimate of ending annual solid waste fund balances and projected monthly charge for a typical single family home with a 32-gallon cart size (the most common cart size).
Solid Waste Rate Scenarios
Current
Solid Waste
Rates
Proposed Solid Waste Rates Effective
January 1
2024
January 1
2025
January 1
2026
January 1
2027
Rate Increase Scenarios
A - Gradual Annual Rate Increases
B - No Rate Increases in 2024
4.5% 4.5% 4.5% 4.5%
0.0% 6.0% 6.0% 6.0%
Projected Ending Fund Balances
A - Gradual Annual Rate Increases $2,281,000 $2,290,000 $2,246,000 $2,260,000 % of Annual Expenses 18.7% 17.9% 16.7% 16.2%
B - No Rate Increases in 2024 $1,809,000 $1,483,000 $1,255,000 $1,253,000 % of Annual Expenses 14.9% 11.6% 9.4% 9.0%
Single Family Monthly Charge 32-Gallon Cart
A - Gradual Annual Rate Increases
B - No Rate Increases in 2024
$46.04
46.04 $48.11
46.04 $50.27
48.80 $52.53
51.73 $54.89
54.83 Note that deferral of a rate increase in 2024 results in a) drawdown of roughly $1 million of fund reserves over the next 4 years and b) the need for higher rate increases in subsequent years to ultimately support balanced budgets.
BWA’s preliminary recommendation would be to move forward with Scenario A and continue its historical practice of implementing smaller annual rate increases. However, Scenario B is provided as a viable alternative should the City instead opt to defer any solid waste increases in 2024 coupled with slightly larger rate increases in subsequent years.
Cash flow projections and supporting tables are included on the following pages.
10.b
September 25, 2023
Packet Pg. 308
Table A-1 San Carlos Solid Waste Financial Projections
Scenario A - Gradual Annual Rate Increases
0 Estimated
2023
1 Projected
2024
2 Projected
2025
3 Projected
2026
4 Projected
2027
5 Projected
2028
6 Projected
2029
7 Projected
2030
8 Projected
2031
9 Projected
2032
10 Projected
2033
Effective Date of Rate Adjustment Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Solid Waste Rate Adjustments
Residential Rate Adjustments
Commercial Rate Adjustments
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
Cost Escalation
Recology Compensation
Disposal & Processing Fees
7.4%
25.1%
5.0%
5.0%
5.0%
5.0%
4.0%
4.0%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
Beginning Fund Balance $1,399,000 $2,222,000 $2,281,000 $2,290,000 $2,246,000 $2,260,000 $2,286,000 $2,314,000 $2,346,000 $2,382,000 $2,421,000 Prelimiinary
Revenues
Service Charges, Single Fam Residential
Service Charges, Commercial
5,003,000
6,738,000
5,228,000
7,041,000
5,463,000
7,358,000
5,709,000
7,689,000
5,966,000
8,035,000
6,175,000
8,316,000
6,391,000
8,607,000
6,615,000
8,908,000
6,847,000
9,220,000
7,087,000
9,543,000
7,335,000
9,877,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total 11,741,000 12,269,000 12,821,000 13,398,000 14,001,000 14,491,000 14,998,000 15,523,000 16,067,000 16,630,000 17,212,000 Expenses
Recology Contractor's Compensation
Disposal & Processing Fees
City Cost Recovery
6,325,000
3,015,000
1,578,000
6,791,000
3,772,000
1,647,000
7,131,000
3,961,000
1,720,000
7,488,000
4,159,000
1,795,000
7,788,000
4,325,000
1,874,000
8,061,000
4,476,000
1,928,000
8,343,000
4,633,000
1,994,000
8,635,000
4,795,000
2,061,000
8,937,000
4,963,000
2,131,000
9,250,000
5,137,000
2,204,000
9,574,000
5,317,000
2,279,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total 10,918,000 12,210,000 12,812,000 13,442,000 13,987,000 14,465,000 14,970,000 15,491,000 16,031,000 16,591,000 17,170,000 Revenues Less Expenses 823,000 59,000 9,000 (44,000) 14,000 26,000 28,000 32,000 36,000 39,000 42,000 Ending Fund Balance 2,222,000 2,281,000 2,290,000 2,246,000 2,260,000 2,286,000 2,314,000 2,346,000 2,382,000 2,421,000 2,463,000 Fund Balance % of Annual Exps 20.4% 18.7% 17.9% 16.7% 16.2% 15.8% 15.5% 15.1% 14.9% 14.6% 14.3%
10.b
September 25, 2023
Packet Pg. 309
Projected Solid Waste RatesTable A-2
Scenario A - Gradual Annual Rate Increases
Current Rates Proposed Solid Waste Rates Effective
January 1
2023
January 1
2024
January 1
2025
January 1
2026
January 1
2027
Rate Increase % 4.5% 4.5% 4.5% 4.5%
RESIDENTIAL CURBSIDE SERVICE
Cart Size (weekly pickup)
20 gallon
32 gallon
64 gallon
$30.81
46.04 70.11
90.59 $32.20
48.11 73.26
94.67 $33.65
50.27 76.56
98.93 $35.16
52.53 80.01
$36.74
54.89 83.61
96 gallon 103.38 108.03
COMMERCIAL CART SERVICE
Cart Size (weekly pickup)
32 gallon $35.35
73.78 $36.94
77.10 $38.60
80.57 $40.34
84.20 $42.16
87.9964 gallon
96 gallon 109.49 114.42 119.57 124.95 130.57
COMMERCIAL BIN SERVICE
1 Yard (weekly pickup)
2 Yards (weekly pickup)
3 Yards (weekly pickup)
3 Yards (twice weekly pickup,
includes frequency surcharge)
$150.48
306.93
469.29
993.07
$157.25
320.74
490.41
$164.33
335.17
512.48
$171.72
350.25
535.54
$179.45
366.01
559.64
1,037.76 1,084.46 1,133.26 1,184.26
10.b
September 25, 2023
Packet Pg. 310
Table A-3 Projected City Solid Waste Cost Recovery
Scenario A - Gradual Annual Rate Increases
Cost Esc. Base 2024 2025 2026 2027
Projected Rate Increases
Service Charge Revenues
4.5% 4.5% 4.5% 4.5%
$11,741,000 $12,269,000 $12,821,000 $13,398,000 $14,001,000 San Carlos Cost Recovery
Franchise Fees (10% of net revenues)*
Litter Control (2% of net revenues)*
Steam Clean City Containers
Street Sweeping
1,016,328
203,266
111,583
159,545
87,000
1,062,192
212,438
116,046
165,927
90,480
1,110,147
222,029
120,688
172,564
94,099
1,160,282
232,056
125,516
179,466
97,863
1,212,682
242,536
130,536
186,645
101,778
4.0%
4.0%
4.0%
4.0%
City Management
Misc/Other 0 0 0 0 0________
1,577,721
1,578,000
________
1,647,083
1,647,000
4.4%
________
1,719,528
1,720,000
4.4%
________
1,795,183
1,795,000
4.4%
________
1,874,178
1,874,000
4.4%
Total
Rounded
% Increase____________
* Net revenues equal total service charge revenues less all City fees.
10.b
September 25, 2023
Packet Pg. 311
Table B-1 San Carlos Solid Waste Financial Projections
Scenario B - No Rate Increase in 2024
0 Estimated
2023
1 Projected
2024
2 Projected
2025
3 Projected
2026
4 Projected
2027
5 Projected
2028
6 Projected
2029
7 Projected
2030
8 Projected
2031
9 Projected
2032
10 Projected
2033
Effective Date of Rate Adjustment Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Solid Waste Rate Adjustments
Residential Rate Adjustments
Commercial Rate Adjustments
0.0%
0.0%
6.0%
6.0%
6.0%
6.0%
6.0%
6.0%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
Cost Escalation
Recology Compensation
Disposal & Processing Fees
7.4%
25.1%
5.0%
5.0%
5.0%
5.0%
4.0%
4.0%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
Beginning Fund Balance $1,399,000 $2,222,000 $1,809,000 $1,483,000 $1,255,000 $1,253,000 $1,263,000 $1,275,000 $1,290,000 $1,307,000 $1,325,000 Prelimiinary
Revenues
Service Charges, Single Fam Residential
Service Charges, Commercial
5,003,000
6,738,000
5,003,000
6,738,000
5,303,000
7,142,000
5,621,000
7,571,000
5,958,000
8,025,000
6,167,000
8,306,000
6,383,000
8,597,000
6,606,000
8,898,000
6,837,000
9,209,000
7,076,000
9,531,000
7,324,000
9,865,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total 11,741,000 11,741,000 12,445,000 13,192,000 13,983,000 14,473,000 14,980,000 15,504,000 16,046,000 16,607,000 17,189,000 Expenses
Recology Contractor's Compensation
Disposal & Processing Fees
City Cost Recovery
6,325,000
3,015,000
1,578,000
6,791,000
3,772,000
1,591,000
7,131,000
3,961,000
1,679,000
7,488,000
4,159,000
1,773,000
7,788,000
4,325,000
1,872,000
8,061,000
4,476,000
1,926,000
8,343,000
4,633,000
1,992,000
8,635,000
4,795,000
2,059,000
8,937,000
4,963,000
2,129,000
9,250,000
5,137,000
2,202,000
9,574,000
5,317,000
2,277,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total 10,918,000 12,154,000 12,771,000 13,420,000 13,985,000 14,463,000 14,968,000 15,489,000 16,029,000 16,589,000 17,168,000 Revenues Less Expenses 823,000 (413,000) (326,000) (228,000) (2,000) 10,000 12,000 15,000 17,000 18,000 21,000 Ending Fund Balance 2,222,000 1,809,000 1,483,000 1,255,000 1,253,000 1,263,000 1,275,000 1,290,000 1,307,000 1,325,000 1,346,000 Fund Balance % of Annual Exps 20.4% 14.9% 11.6% 9.4% 9.0% 8.7% 8.5% 8.3% 8.2% 8.0% 7.8%
10.b
September 25, 2023
Packet Pg. 312
Projected Solid Waste RatesTable B-2
Scenario B - No Rate Increase in 2024
Current Rates Proposed Solid Waste Rates Effective
January 1
2023
January 1
2024
January 1
2025
January 1
2026
January 1
2027
Rate Increase % 0.0% 6.0% 6.0% 6.0%
RESIDENTIAL CURBSIDE SERVICE
Cart Size (weekly pickup)
20 gallon
32 gallon
64 gallon
$30.81
46.04 70.11
90.59 $30.81
46.04 70.11
90.59 $32.66
48.80 74.32
96.03 $34.62
51.73 78.78
$36.70
54.83 83.51
96 gallon 101.79 107.90
COMMERCIAL CART SERVICE
Cart Size (weekly pickup)
32 gallon $35.35
73.78 $35.35
73.78 $37.47
78.21 $39.72
82.90 $42.10
87.8764 gallon
96 gallon 109.49 109.49 116.06 123.02 130.40
COMMERCIAL BIN SERVICE
1 Yard (weekly pickup)
2 Yards (weekly pickup)
3 Yards (weekly pickup)
3 Yards (twice weekly pickup,
includes frequency surcharge)
$150.48
306.93
469.29
993.07
$150.48
306.93
469.29
993.07
$159.51
325.35
497.45
$169.08
344.87
527.30
$179.22
365.56
558.94
1,052.65 1,115.81 1,182.76
10.b
September 25, 2023
Packet Pg. 313
Table B-3 Projected City Solid Waste Cost Recovery
Scenario B - No Rate Increase in 2024
Cost Esc. Base 2024 2025 2026 2027
Projected Rate Increases
Service Charge Revenues
0.0% 6.0% 6.0% 6.0%
$11,741,000 $11,741,000 $12,445,000 $13,192,000 $13,983,000 San Carlos Cost Recovery
Franchise Fees (10% of net revenues)*
Litter Control (2% of net revenues)*
Steam Clean City Containers
Street Sweeping
1,016,328
203,266
111,583
159,545
87,000
1,015,049
203,010
116,046
165,927
90,480
1,076,576
215,315
120,688
172,564
94,099
1,141,889
228,378
125,516
179,466
97,863
1,211,075
242,215
130,536
186,645
101,778
4.0%
4.0%
4.0%
4.0%
City Management
Misc/Other 0 0 0 0 0________
1,577,721
1,578,000
________
1,590,512
1,591,000
0.8%
________
1,679,242
1,679,000
5.6%
________
1,773,112
1,773,000
5.6%
________
1,872,249
1,872,000
5.6%
Total
Rounded
% Increase____________
* Net revenues equal total service charge revenues less all City fees.
10.b
September 25, 2023
Packet Pg. 314
CITY COUNCIL
STAFF REPORT
MEETING DATE: September 25, 2023
ITEM TITLE: Consideration of Adopting a Resolution Amending the Employment Agreement with Jeff D. Maltbie, City Manager.
RECOMMENDATION:
Staff recommends that the City Council adopt a Resolution approving the Employment Agreement with Jeff D. Maltbie, City Manager.
FISCAL IMPLICATIONS:
There is no fiscal impact and no additional appropriation is needed at this time.
The additional cost of the contract over the three-year agreement is approximately $213,100. As discussed with the City Council during the budget study sessions, certain assumptions were presumed and included as part of the development of the Adopted Fiscal Year (“FY”) 2023-25 Biennial Budget, therefore, there is sufficient funding for FYs 2023-25.
BACKGROUND:
The City Council conducted the review of the City Manager’s performance on August 28, 2023 and instructed the City Attorney to negotiate with him as labor negotiator. The City Council instructed the City Attorney to discuss proposals with the City Manager that resulted in the attached proposal for amendment to the City Manager’s Employment Agreement (the ”Agreement”).
ANALYSIS:
The proposed employment agreement has been modeled from the recent City Attorney agreement and includes the following provisions:
•The Agreement will be a fixed term of March 14, 2023 through March 13, 2026; •The City Manager will receive an annual salary of $380,000, effective the first full pay period beginning after March 14, 2023 and will be as of the effective date eligible for the same cost of living and benefits offered to the Management Group; •The 10% discretionary cash bonus provision that had been added in March 2014 has been removed from the Agreement;
•The annual increase to the car allowance has been removed. The total allowance will be
10.c
September 25, 2023
Packet Pg. 315
fixed at $665 per month for the term of the Agreement;
•A provision has been added that restricts the City Council from terminating the City Manager for three months following a Council election;
•A provision has been added to include a one-time, eight-week paid sabbatical between June and August 2025; and
•All other provisions of the Agreement related to compensation and benefits are unchanged.
ALTERNATIVES:
The alternatives available to the City Council include:
1. Adopt a Resolution approving the Employment Agreement with Jeff D. Maltbie, City Manager; or
2. Do not adopt the Resolution; or
3. Provide staff with alternative direction.
Respectfully submitted by:
Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):
1. Resolution
Exhibit A to Resolution - Jeff D. Maltbie, City Manager Employment Agreement
10.c
September 25, 2023
Packet Pg. 316
RESOLUTION NO. 2023 – ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS
AMENDING THE EMPLOYMENT AGREEMENT WITH
JEFF D. MALTBIE, CITY MANAGER.
WHEREAS, the City Council conducted the review of the City Manager’s performance on August 28, 2023; and
WHEREAS, the City Council instructed the City Attorney to discuss proposals with the City Manager that resulted in changes to the employment agreement; and WHEREAS, the City Council has reviewed and agreed to the terms of the employment agreement.
NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby approves the employment agreement with Jeff D. Maltbie, City Manager, the form of which is attached hereto as Exhibit A.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of September 2023, by the following vote:
AYES, COUNCILMEMBERS:___________________________________________ NOES, COUNCILMEMBERS:___________________________________________ ABSENT, COUNCILMEMBERS:___________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibit A: Jeff D. Maltbie, City Manager Employment Agreement
10.c
September 25, 2023
Packet Pg. 317
1 3
6 0
EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SAN CARLOS AND JEFF MALTBIE This Employment Agreement ("Agreement") is entered into by the City of San Carlos, a municipal corporation (hereinafter "City" or "Employer"), and Jeff Maltbie, ("Employee"). City and Employee may be collectively referred to herein as the "Parties."
Recitals
A. The City Council ("Council") and Employee entered into an agreement effective on March 14, 2011, whereby the Council retained the services of Employee in the position of City Manager (the "Original Agreement"), which Agreement has been in continuous force and effect since that date; and B. The Original Agreement was amended from time to time to provide for the adjustment of the salary of Employee and to add or clarify certain specified benefits. Council desires to continue to employ Employee in the position of City Manager and to provide for updated terms and conditions of employment for Employee; and
C. Employee desires to continue to provide services as the City Manager for the City of San Carlos under the terms and conditions set forth herein; and
D. Employee is willing to continue working for the City and remains qualified to provide such services to the City.
Terms of Agreement
In consideration of the mutual covenants contained herein, the Parties agree as follows:
1. Appointment
The Council agrees to continue to employ Employee as City Manager to perform the functions and duties of City Manager specified by state law and as may be articulated in the San Carlos Municipal Code, and to perform duties and functions as the Council may from time-to-time reasonably assign. This appointment and employment hereunder are "at-will" and may be terminated by the Council as provided in Section 4. Nothing in this Agreement prevents, limits or otherwise interferes with the right of either party to terminate the services of Employee at any time, except as provided in Section 4.
Employee's appointment and employment herein are continuous from his initial appointment and employment under the Original Employment Agreement.
2. Duties and Restrictions
Employee agrees to devote Employee's best efforts, attention, and skills to performance of the duties of the position of City Manager. Employee may not engage, without the express prior written consent of the City Council, in any other business duties or pursuits whatsoever or, directly or indirectly, render any services of a business, commercial or professional nature to any other person or organization, whether for compensation or otherwise, that might cause a conflict of interest with the Employer or that might otherwise interfere with the business or operations of the City or the satisfactory performance of Employee's duties.
3. Term
10.c
September 25, 2023
Packet Pg. 318
1 3
6 0
This Agreement is effective as of March 14, 2023 ("Effective Date") and will govern the terms and conditions of Employee's employment as of that date, and will remain in force and effect for a term of three (3) years until March 14, 2026 or until terminated under Section 4.
4. Termination and Severance Pay
Notwithstanding anything in this Agreement to the contrary, the term of this Agreement may be terminated as follows by a 3/5 vote of the full Council:
A. Voluntary Resignation. Employee may voluntarily resign from employment with the City. If Employee voluntarily resigns or retires from employment with the City, Employee is requested to give the City 60 days advance written notice, unless the parties agree otherwise. At the City’s option, Employee may be requested to work or requested not to report to work during the notice period. In either instance, Employee will receive Employee's regular compensation during the 60-day notice period. If City and Employee mutually agree to a shorter notice period, Employee will only be entitled to compensation during that mutually agreed upon amended notice period.
B. Termination by City. The City may terminate Employee in accordance with the following:
1. With Cause. This Agreement may be terminated by Council for cause or misconduct by Employee. Written notice must be provided to Employee at least 30 days before the termination date setting forth the grounds for termination. If requested by the Employee within 10 days of receipt of the notice, Council will hold a meeting to consider the termination. The meeting will occur within 20 days of the request or at such time as is mutually agreed upon by the Parties. If Employee requests, Council will hold a public session as provided in Government Code Section 54957(b). At the meeting, Council may determine whether or not Employee should be terminated. Employee is not entitled to severance pay if Council determines to terminate Employee for cause. For purposes of this Agreement, "cause or misconduct" means:
• Willful breach or habitual neglect of duty of any City policy or procedure or any term of this Agreement;
• The commission of any material act of dishonesty, fraud, misrepresentation or any other act of moral turpitude;
• Gross carelessness or misconduct;
• Conviction of any felony, or conviction of any misdemeanor arising out of Employee's duties under this agreement and involving a willful or intentional violation of law; • Misappropriation of public funds, or misuse or destruction of City property; • Acts or conduct that may present an immediate danger to the public health and safety; • Insubordination, which means the willful refusal to obey lawful direction of the Council; • Violation of City harassment or discrimination policies; • Abuse of office or position; or,
• Absence without leave or death.
10.c
September 25, 2023
Packet Pg. 319
1 3
6 0
2. Without Cause. The Parties agree that circumstances may arise under which Council may wish to terminate this Agreement without reference to specific issues or failure to perform on the part of Employee. If Council terminates Employee without reference to specific cause or misconduct (as defined in Section 4.B.1 above), then Council will provide Employee with notice of such decision and Employee will be entitled to severance pay equal to twelve (12) months’ salary calculated at Employee's base salary in effect at the time notice is given, payable in a lump sum as of Employee’s separation date. In addition, the City will pay COBRA benefits (medical, dental, vision) on a reimbursement basis for Employee and family for twelve (12) months, or until Employee secures alternate employment, whichever comes first. The Parties agree that any termination under this provision will not be initiated:
(a) during the 90-day period succeeding any municipal election held in the City at which a member of the City Council is elected; or (b) during the 90-day period succeeding the appointment of any member to the City Council. Nothing in this provision prohibits the placement of Employee on paid administrative leave during any period during which termination without cause is prohibited by this provision. In addition, nothing in this provision prohibits Employee from resigning from employment with the City at any time. Payment of any severance will be made in accordance with Government Code Section 53260 and is contingent on Employee signing a full general release of all claims to include a mutual non- disparagement clause.
C. Pay Upon Termination. Upon termination of employment for any reason, Employee will be paid for services rendered through the date of termination, including payment for all accumulated and unused vacation leave at employee's base hourly rate of pay (determined by dividing employee's annual salary by 2,080 hours) as required by law.
5. Abuse of Office
A. In the event City places Employee on paid leave pending an investigation, Employee must fully reimburse such pay to the City if Employee is subsequently convicted of a crime involving an abuse of his office or position.
B. In the event City funds all or part of a legal criminal defense for Employee, Employee must fully reimburse such funds to the City if Employee is subsequently convicted of a crime involving an abuse.
C. In the event this Agreement is terminated and Employee receives a cash payment related to the termination, Employee must fully reimburse those funds to the City if Employee is subsequently convicted of a crime involving an abuse of Employee's office or position.
D. For purposes of this Section, "abuse of office or position" is defined in Government Code Section 53243.4.
6. Disability
If Employee is medically unable, with or without reasonable accommodation, to perform the essential functions of the position, City may terminate this Agreement subject to the severance pay requirements of Section 4.B.2 above.
7. Salary
A. City agrees to compensate Employee for services rendered in the position of City Manager at an annual salary of $380,000.00 effective as of the Effective Date. The salary paid to Employee will be paid
10.c
September 25, 2023
Packet Pg. 320
1 3
6 0
in installments on the City's normal paydays, in accordance with the City's normal pay practices, and will be subject to customary withholding for taxes and other required or authorized deductions.
B. The Parties agree to conduct an annual salary review concurrently with the annual performance evaluation set forth in Section 14. The annual salary review will include consideration of those benefits provided to Employee under this Agreement. The City Council may, but is not required to, consider or approve merit increases or other compensation enhancements in conjunction with the annual salary review, and may consider cost of living adjustments greater than the adjustments offered to the Management Group.
C. Commencing on the Effective Date, Employee will be eligible for the same cost of living and benefit increases offered to the Management Group in each year that such increases are provided. Except as provided herein, merit and cost of living increases in salary, or other compensation adjustments will be determined by the City Council in its sole discretion as part of Employee's annual performance evaluation.
8. Pension, Health and Welfare Benefits
Unless modified by this Agreement, City will provide Employee the same benefit programs, including medical, dental, life insurance, disability plans and post-employment benefits, on the same terms as offered to the City's current Management Group employees hired by the City before January 1, 2009.
9. Vacation and Administrative Leaves
A. Employee will be entitled accrue vacation leave at the rate offered to the Management Group and shall be entitled to his existing and continuing accruals as of the Effective Date.
B. Employee shall be entitled to a one-time eight-week paid sabbatical between June-August 2025.
10. Life Insurance The City will provide Employee with term life insurance in the amount of $400,000.
Employee understands a portion of this benefit is taxable and that he is responsible for remitting any tax owed.
11. Deferred Compensation
A. The City will provide Employee with access to a qualified deferred compensation plan under Internal Revenue Code Section 457, into which Employee may deposit funds from base salary at Employee's discretion and as allowed by law. The City agrees to make monthly payments of $1,150 into the deferred compensation plan. The contributions will not be deemed to increase Employee's base salary for any purpose.
B. The City will provide an Internal Revenue Code Section 401(a) plan into which employee may elect to make contributions in accordance with the plan. The City will make no contributions to Employee's account.
12. Management Benefits
A. Automobile Allowance. City will pay Employee a monthly automobile allowance of $665. This automobile allowance is intended to fully compensate Employee for the use of Employee's personal vehicle in performing City business.
10.c
September 25, 2023
Packet Pg. 321
1 3
6 0
B. Electronic Devices. The City agrees to provide Employee, with a laptop and other necessary peripheral devices.
C. Dues and Subscriptions. The City agrees to budget for and to pay for professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state, and local associations and organizations that are necessary and desirable for Employee's continued professional participation, growth and advancement, and for the good of the City.
D. Professional Development.
1. The City will budget and pay for the costs associated with maintaining Employee's membership in the ICMA.
2. Except as provided herein, the City will budget for and to pay for travel and subsistence expenses of Employee for professional and official travel, meeting, and other occasions to continue the professional development of Employee, and to adequately pursue necessary official functions for the City, including but not limited to the ICMA and Cal Cities meetings and conferences, and such other national, regional, state and local governmental groups and committees (including community and civic organizations) thereof which Employee serves as a member, and for travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for his professional development and for the good of the City. Employee understands and agrees these professional development expenses are subject to budget constraints and that the Council retains discretion to limit expenditures under this paragraph.
13. Work Hours
The position of City Manager is an exempt employee position. Employee is expected to work the hours necessary to fulfill the obligations of the City Manager position. As the chief executive officer of the City, the City Manager is expected to be available at all times and is generally expected to be physically present in the workplace during normal business hours on most days. In recognition of the position's demands, the Council wishes to provide Employee with the flexibility to determine Employee's own work schedule so long as Employee fulfills all work-related obligations. The Parties agree that Employee may therefore set Employee's own regular work schedule provided that this schedule averages at least 8 hours per regular workday (including leave taken) over a two-week period.
14. Performance Evaluation
A. City and Employee acknowledge that periodic performance evaluations are an important means by which City and Employee may ensure effective communications regarding expectations and performance. Toward this end, the Council may review and discuss Employee's performance and set performance goals for Employee on an annual basis in or around March of each calendar year. Employee acknowledges and accepts the fact that Council has the right to schedule an evaluation session more frequently than once a year.
B. Employee or Council may request and schedule the annual performance evaluation as appropriate under Council agenda procedures or as otherwise directed by the Council.
15. Bonds
10.c
September 25, 2023
Packet Pg. 322
1 3
6 0
City will pay the full cost of any fidelity or other bonds required of Employee by law or ordinance.
16. Indemnification City will defend, hold harmless, and indemnify Employee against any claim, demand, judgment or action of any type or kind arising out of an act or omission occurring within the course and scope of his employment to the extent required by Government Code Sections 825 and 995. In its sole discretion, the City may compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered therefrom.
17. Notices
Notices to Employee must be served (1) to Employee personally, or (2) by deposit in the custody of the United States Postal Service, postage prepaid, to Employee's home address on file with the City. Notice is deemed given as of the date of personal service, delivery or deposit, respectively. Notices to the City must be (1) delivered to the City Clerk personally, (2) delivered to the City Clerk's Office during normal business hours, or (3) deposited in the custody of the United States Postal Service, postage prepaid, address to the City Clerk.
18. Non-Disclosure of Confidential Information
Employee must not, during the term of this Agreement, or any time thereafter, impart to anyone any confidential information which Employee may acquire in the performance of his duties as city manager under this Agreement, except as permitted by the City or under compulsion of law.
19. General Provisions
A. Construction. "Herein" and other similar compounds of the word "here" mean this entire instrument and not any particular provision. Section headings and numbers have been inserted for convenience of reference only and are of no legal effect. In the event of any conflict between any headings or numbers and the text of this Agreement, the text controls.
B. Counterparts. This Agreement may be executed in one or more counterparts, each of which is considered an original, and all of which taken together are considered one and the same instrument.
C. Waiver. Waiver by either party of any term or condition of this Agreement or any breach is not a waiver of any other term or condition or breach of the Agreement.
D. Execution and Applicable Law. This Agreement has been executed in California and is to be governed in accordance with the laws of the State of California in every respect. The Parties agree that venue for any action arising out of this Agreement will be a court of competent jurisdiction siting in or with jurisdiction over actions arising in San Mateo County.
E. Amendment. This Agreement may not be amended or modified except by a written instrument executed by the parties.
F. Entire Agreement. This Agreement contains all of the terms agreed upon by the City and Employee with respect to the subject matter of this Agreement and supersedes all prior agreements, arrangements and communications between the Parties concerning such subject matter, whether oral or written, including but not limited to information published in the job announcement and other recruiting documents pertaining to compensation and benefits of the city manager position.
10.c
September 25, 2023
Packet Pg. 323
1 3
6 0
G. Mediation. Neither party may file any legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The Parties will pay the costs of the mediator, if any, equally. If a mediated settlement is reached, neither party will be deemed the prevailing party for purposes of the settlement and each party will bear its own legal costs.
H. Attorney's Fees. In the event of litigation, reasonable attorney's fees shall be awarded to the prevailing party.
I. Successors. This agreement is binding upon and inure to the benefit of the heirs at law and executors of Employee.
J. Severance of Provisions. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, is considered severable, not affected, and remains in full force and effect.
IN WITNESS WHEREOF, the City and Employee do hereby agree to the full performance of the terms set forth herein. City of San Carlos
Employee City
__________________________________ ____________________________________ Jeff Maltbie Adam Rak, Mayor
Approved as to Form:
________________________________
Gregory J. Rubens, City Attorney
10.c
September 25, 2023
Packet Pg. 324